Exhibit 10.3

 



First Midwest Bancorp, Inc.

 

 

SHORT TERM INCENTIVE COMPENSATION PLAN

 

PLAN DOCUMENT

 

 

Revised February 22, 2012

 











 

FIRST MIDWEST BANCORP, INC.

SHORT TERM INCENTIVE COMPENSATION PLAN

PLAN DOCUMENT

 

	
 
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
1.
    	
Concept
    	
1
    
	
2.
    	
Eligibility and Participation
    	
1
    
	
3.
    	
Award Scale
    	
1
    
	
4.
    	
Company Performance Categories and Measurement
    	
1
    
	
5.
    	
Reserved
    	
1
    
	
6.
    	
Individual Performance Measurements
    	
2
    
	
7.
    	
Minimum Performance Levels
    	
2
    
	
8.
    	
Calculation of a Participant’s Award
    	
2
    
	
9.
    	
Discretionary Awards
    	
3
    
	
10.
    	
Effect of Termination of Employment on Award   Payment
    	
3
    
	
11.
    	
Maximum Amount of Awards Paid in a Plan Year
    	
3
    


 











 

FIRST MIDWEST BANCORP, INC. (“COMPANY”)

SHORT TERM INCENTIVE COMPENSATION PLAN

PLAN SPECIFICATIONS AND PROCEDURES

 

* * *

 

	
1.
    	
Concept
    
	
 
    	
 
    
	
 
    	
The Short Term Incentive Compensation Plan (the “Plan”) is intended   to be an annual incentive plan for key managers and employees of the Company   where Target Awards are established and communicated to each participant each   Plan year.  Based on the level of   achievement of predetermined performance goals for both the Company and the   individual participants, an amount less than or greater than the Target Award   can be earned.
    
	
 
    	
 
    
	
2.
    	
Eligibility and Participation
    
	
 
    	
 
    
	
 
    	
Participation in the Plan will be limited   to key managers and employees of the Company as determined by the Compensation   Committee of the Board of Directors of First Midwest Bancorp, Inc. (the “Compensation   Committee”) from time to time.
    


 

	
3.
    	
Award Scale
    
	
 
    	
 
    
	
 
    	
Each Plan year payout amounts shall be set for each performance   metric designated by the Compensation Committee (see Section 4 and Section 6)   based on a graduated scale that includes “Minimum”, “Target” and “Maximum”   performance levels and corresponding bonus payment levels, with “Target”   performance being the level at which a participant will earn 100% of his or   her award.  Target Awards will be expressed as   a percentage of base salary earned during the Plan year (excluding overtime,   where applicable, and any other components of compensation).  Based on the achievement of the   predetermined performance goals set for the Plan year, an amount less than or   greater than the “Target” award can be earned.  
    


 

	
4.
    	
Company Performance Categories and Measurement
    
	
 
    	
 
    
	
 
    	
Company performance categories, metrics and measurements for the each   Plan year will be determined by the Compensation Committee in its   discretion.  Notwithstanding the   forgoing, the Compensation Committee may in its discretion modify any payouts   of awards (upwards or downwards) to be granted under the Plan to insure plan   objectives are met taking into consideration any factors it deems necessary   or appropriate. 
    


 

	
5.
    	
Reserved
    


 

1











 

	
6.
    	
Individual   Performance Measurements
    
	
 
    	
 
    
	
 
    	
Individual performance will be based on the achievement of   predetermined performance standards as determined by each participant’s   supervisor.  Such performance standards   should primarily consider the participant’s area of responsibility (where the   participant is responsible for management of a department, division, banking   center or other business unit) or the participant’s individual performance   (where such participant has little or no management responsibilities).
    
	
 
    	
 
    
	
 
    	
The individual performance standards may consider:
    


 

	
·
    	
Supportive   of the Company’s Mission Statement;
    
	
·
    	
Varied   in scope and complexity in relation to the participant’s level of   responsibility within the Company; and
    
	
·
    	
Controllable   by the participant.
    


 

	
 
    	
For each Plan year the portion of a participant’s “Target” award attributable   to individual performance will be determined by the Compensation Committee in   its discretion and be based upon the Supervisor’s recommended percentage,   within the parameters established by the participant’s performance rating   level.  The performance rating (Far Exceeds Expectations,   Exceeds Expectations, Meets Expectations, Meets conditionally and Does Not   Meet Expectations), used to determine this portion of a Participant’s award   must be the same as the evaluator’s “Overall Performance Rating” as indicated   on the First Midwest Performance Evaluation Form.  Any participant who receives an overall   performance rating of “Meets conditionally or Does Not Meet Expectations”   will also experience a reduction in that participant’s company performance   award as described in Section 4.
    


 

	
7.
    	
Minimum Performance Levels
    
	
 
    	
 
    
	
 
    	
For each Plan year, the Compensation Committee in its discretion may   determine any minimum level of performance for any performance metric   required for awards.
    


 

	
8.
    	
Calculation   of a Participant’s Award
    
	
 
    	
 
    
	
 
    	
For each Plan year, the award payable to each participant shall be   calculated based upon the results of each performance metric designated by   the Compensation Committee (see Section 4 and 6) based on the graduated   scale approved by the Compensation Committee (see Section 3).  As described in Section 6, a reduction in the   calculated awards for company performance will be made for participants   receiving a Meets conditionally or Does Not Meet Expectations as his or her   individual performance rating.
    


 

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9.
    	
Discretionary   Awards
    
	
 
    	
 
    
	
 
    	
The purpose of the Plan is to reward key managers and employees of   the Company based upon the level of achievement of predetermined performance   goals.  Accordingly, the Company has   provided, within the structure of the Plan, a mechanism to reward certain   outstanding employees for their individual contribution, in addition to their   Plan-calculated awards.  Discretionary,   awards shall be based upon the recommendation of the Chief Executive Officer   for his direct reports, and at the recommendation of the Compensation   Committee for our Chief Executive Officer.
    


 

	
10.
    	
Effect of   Termination of Employment on Award Payment
    
	
 
    	
 
    
	
 
    	
Termination of employment prior to payment of an award under the Plan   (which will generally occur in mid-February following the end of each Plan   year), even if it occurs after the Plan year-end, will result in forfeiture   of the award.
    
	
 
    	
 
    
	
11.
    	
Maximum   Amount of Awards Paid in a Plan Year
    	
 

	
 
    	
 
    	
 

	
 
    	
The awards earned by participants will generally be paid in   accordance with the terms of the Plan as described above.  However, the Compensation Committee may in   its discretion establish a maximum aggregate dollar amount of awards paid   under the Plan in any year, regardless of the aggregate awards calculated   based upon the level of performance in any of the categories described   above.  If the aggregate Plan awards in   any year exceed such amount, a reduction in aggregate Plan awards may be   directed by the Committee.
    	
 



 

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