Exhibit 10.1


 


Helmerich & Payne, Inc.


Annual Bonus Plan for Executive Officers


 


Overview


 


Annual bonus awards are
available to certain executive officers to recognize and reward desired
performance.  Each year the Human
Resources Committee (the “Committee”) reviews and makes any desired changes to the
participants, the performance measures, and the specific financial and
strategic objectives.  An executive
officer’s bonus award opportunity is determined primarily by the individual’s
position and level of responsibility.


 


Participation


 


The participants in the
Plan are H&P’s executive management team, which includes


 


·                  Hans Helmerich


·                  John Lindsay


·                  Alan Orr


·                  Doug Fears


·                  Steve Mackey


 


Bonus Award Opportunity


 


Participants are assigned
target bonus awards expressed as percentages of base salary.  These bonus awards are earned when
performance objectives are achieved.  The
award percentages are as follows:


 


	
   

  	
   

  	
  Threshold

  	
   

  	
  Target

  	
   

  	
  Reach

  	
   

  
	
  Hans
  Helmerich

  	
   

  	
  40

  	
  %

  	
  80

  	
  %

  	
  130

  	
  %

  
	
  John
  Lindsay

  	
   

  	
  25

  	
  %

  	
  50

  	
  %

  	
  100

  	
  %

  
	
  Alan
  Orr

  	
   

  	
  25

  	
  %

  	
  50

  	
  %

  	
  100

  	
  %

  
	
  Doug
  Fears

  	
   

  	
  25

  	
  %

  	
  50

  	
  %

  	
  100

  	
  %

  
	
  Steve
  Mackey

  	
   

  	
  25

  	
  %

  	
  50

  	
  %

  	
  100

  	
  %

  



 


Financial Performance Objectives


 


The financial performance
objectives selected align management with shareholders.  When these objectives are met, shareholders
will realize greater value in their Company ownership.  A participant’s bonus award will be based
upon three disproportionately weighted financial measures being:


 


	
  Financial Measure

  	
   

  	
  Weighting

  	
   

  
	
  Earnings
  Per Share

  	
   

  	
  35

  	
  %

  
	
  Return
  on Invested Capital

  	
   

  	
  35

  	
  %

  
	
  Operating
  EBITDA

  	
   

  	
  30

  	
  %

  



 

















 


The Board of Directors,
at its September quarterly meeting, annually approves an operating and
capital budget for the following fiscal year. 
Each financial measure is then assigned threshold, target and reach objectives
based upon this approved budget.  The
target objective is set so that there is an approximate 66 percent probability
of reaching that objective, with threshold and reach objectives adjusted 30%
below and up to 50% above the target objective. 
After the end of the fiscal year, actual financial results are then
compared to the predetermined objectives for each of the financial measures to
determine the amount of any bonus.  In
the event actual financial results fall between the threshold and target or the
target and reach objectives, then the bonus shall be proportionately increased
as a result of the threshold or target objective being exceeded.


 


Strategic Performance Objectives


 


The bonus, if any,
derived from the Company’s financial performance may then be adjusted by a
maximum of 100% as determined by the Committee (“adjustment factor”).  Eighty percent of this adjustment factor is based
upon the Committee’s subjective evaluation of the Company’s total shareholder
return relative to an industry peer group. 
The remaining 20% of this adjustment factor is based upon the Committee’s
subjective evaluation of the Company’s goals of attaining higher than industry
average utilization and premium day rates and continued industry leading safety
performance.


 


Negative
Discretion


 


Notwithstanding the
provisions of this Annual Bonus Plan for Executive Officers, the Committee
shall have the right to reduce or eliminate any bonus otherwise due under this
Plan based upon its subjective determination of individual performance.


 


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