exv10w1









Exhibit 10.1




Western Alliance Bancorp

WAL Parent

Annual Bonus Plan 2008



Objective: The purpose of this Annual Bonus Plan is to provide incentives and rewards for superior
performance in order to attract and retain highly qualified team members and to maximize financial
performance so that Western Alliance Bancorp (WAL) will meet and exceed its goals.



Eligibility: Selected team members who are employed by WAL as of January 1st of the Plan
Year. Bonuses for team members hired after January 1st but on or before September
30th of a Plan Year will be prorated. Team members hired after September 30th
may be eligible the following Plan Year.



Effective Date: January 1, 2008. This Plan supersedes all others before it.



Frequency of Awards: Awards will be paid annually within 90 days after the end of the Plan Year.
Participants must be employed at the payment date to receive any bonus compensation under this
Plan.



Plan Administrator: WAL’s Incentive Compensation Committee will administer the Plan. This Committee
is made up of WAL’s Chief Executive Officer, Chief Financial Officer, and Chief Administrative
Officer.



How the Plan Works: Subject to the terms of the Plan, bonus calculations will be based on the
following factors: 1) WAL’s EPS growth, 2) Organic LOAN growth, 3) Organic Customer Funds (includes
100% credit for repo’s) growth, and 4) QUALITY control (Regulatory exams, Internal Audits, Credit
Quality).



A Target bonus percentage expressed as a percent of Base Salary will be established for each
Participant. A payout at the maximum level requires outstanding performance for the year in all
components of the Plan.



Base Salary is defined as the Participant’s actual salary earned for the year which includes pay
for regular hours worked plus paid holiday, sick, and vacation hours; earnings received while on a
Leave of Absence are not included in this calculation.





	A.	 	WAL’s EPS Growth Performance is weighted 35% at the Bank level
	 
	 	 	This portion of the Plan measures the Corporations percent growth in EPS.
	 
	 	 	Adjustments maybe made to this calculation to account for miscellaneous gains or losses. For
example, restructuring charges will be excluded and allocations will be normalized. The
Incentive Compensation Committee may approve other adjustments.






	 	1.	 	As soon as possible after the end of the Plan Year, the Finance Division will
calculate WAL’s EPS.
	 
	 	2.	 	EPS will be calculated including acquisitions.
	 
	 	3.	 	The WAL EPS portion of the bonus will be calculated based on hitting the following EPS
targets listed below:





January 1, 2008 (as approved by the WAL Compensation Committee April 21, 2008)




 









 








WAL

Annual Bonus Plan




Same targets for all affiliates




	 	 	 
	Growth in	 	Percent of Target
	WAL EPS	 	Bonus Paid
	Performance	 	(WAL Portion)
	Less than $1.15
	 	No Bonus paid
	Between $1.15 to $1.30
	 	50% to 75%
	Between $1.30 to $1.44
	 	75% to 100%
	Between $1.44 to 1.59
	 	100% to 125%







	B.	 	Loan and Customer Funds (includes 100% credit for repo’s) Growth Performance is weighted
10% (Loan) and 25% (Customer Funds) for a total of 35%
	 
	 	 	This portion of the bonus will be calculated based on Bank performance in Loan Growth and in
Customer Funds Growth.
	 
	 	 	Senior Management will agree on final budget projections that will be translated into
financial performance goals.
	 
	 	 	Loans and Customer Funds Growth






	 	1.	 	In setting the Budget for each Bank, Loan and Customer Funds Growth Goals will
be established.
	 
	 	2.	 	As soon as possible after the end of the Plan Year, the Finance Department will
measure the Actual Loan and Customer Funds results for the Bank. Adjustments may be
made to these calculations to account for staff transfers, windfalls, etc.
	 
	 	3.	 	Following are the definitions/calculations on which this portion of the bonus
will be based:






	 	a.	 	A calculation will be made for the Bank Growth in Total Loans (10% of
target) and Customer Funds (25% of target).
	 
	 	b.	 	Calculation: The percent of Target bonus paid for Loan and Customer
Funds Growth will each be calculated based on the following schedule:
	 
	 	c.	 	Both loans and customer funds will be calculated on organic growth and
will not include increases in loans or customer funds acquired by acquisition.




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WAL

Annual Bonus Plan




Chart for Organic Loan Growth 10% of target




	 	 	 
	Bank Performance	 	Percent of Target
	Loan Growth	 	Bonus Paid
	WAL Parent	 	(Loans)
	Less than $125MM
	 	No Bonus paid
	Between $125MM to $225MM
	 	25% to 50%
	Between $225MM to $350MM
	 	50% to 75%
	Between $350MM to $425MM
	 	75% to 100%
	Between $425MM to $575MM
	 	100% to 125%






Chart for Organic Customer Funds Growth 25% of target




	 	 	 
	Bank Performance	 	Percent of Target
	Customer Funds Growth	 	Paid
	WAL Parent	 	(Customer Funds)
	Less than $125MM
	 	No Bonus paid
	Between $125MM to 225MM
	 	25% to 50%
	Between $225MM to $350MM
	 	50% to 75%
	Between $350MM to $425MM
	 	75% to 100%
	Between $425MM to $575MM
	 	100% to 125%







	 	4.	 	In order to receive more than 100% of the Loan and Customer Funds growth portion of
the bonus:






	 	a.	 	Bank must achieve a growth of at least $425MM+ in Loans and $425MM+ in
Customer Funds for either to pay more than 100% for the goal being measured, and
	 
	 	b.	 	Participant must meet individual goals in this respective area.






	C.	 	Quality Control is weighted 30%






	 	1.	 	Quality control refers to the effectiveness of the Corporation’s regulatory
examines, internal audits and credit quality.




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WAL

Annual Bonus Plan





	 	2.	 	Quality Control will be measured in the following three areas:






	 	a.	 	All Regulatory Examines (10%) must be level 2 or better
	 
	 	b.	 	Internal Audits (10%) must be at least passing
	 
	 	c.	 	Credit Quality (10%) will be measured in the following two areas






	 	i.	 	Non-performing assets will not exceed .65%
of average total loans Net charge-offs will not exceed .50% of
average total loans






	 	3.	 	The maximum pay out on this quality control is 100%






	E.	 	Other Calculation Provisions






	 	1.	 	Participants must meet individual loan and customer funds production goals, if
assigned, or their total bonus may be reduced or eliminated.
	 
	 	2.	 	Except as otherwise specifically approved and directed by the WAL Compensation Committee, and subject to all legal requirements, the aggregate total of the bonuses paid to Participants in each Bank cannot exceed 10%
of the Net Income for that Bank. If it does, the payments will be pro-rated and
re-calculated as a percent of the actual Net Income of the Bank; however, all participants
below the level of AVP will be eligible for target (actual bank performance) pay outs prior
to proration. The balance remaining after payment to participants below the level of AVP
will then be prorated according to the remaining pool and distributed to AVP and above.
	 
	 	3.	 	A participants bonus may be reduced or eliminated if in the discretion of Management,
i) the department’s loan review and/or audits are rated below satisfactory and/or not
adhering to safety, soundness, and approved operational procedures, ii) any participant,
their branch or department earns a rating of less than “Satisfactory,” iii) the
department’s credit underwriting and/or portfolio management practices are rated below
“Satisfactory” and/or not adhering to safety and soundness, or iv) the participant, their
branch or department has not contributed adequately to the financial results attributed to
them.
	 
	 	4.	 	With the approval of the Incentive Compensation Committee, a participant’s bonus may be
increased over his/her assigned Target bonus percentage in order to recognize extraordinary
performance. The Division Executive will provide written documentation to the Incentive
Compensation Committee to support the recommendation.






	F.	 	Other Administrative Provisions:






	 	1.	 	This is a discretionary bonus plan and, in order to receive payment of any bonus under this Plan, the participant must be employed by the Bank at the time payment
is made, which will be no later than March 15th.
	 
	 	2.	 	Designation as a Participant in the Plan does not create a contract of employment for any
specified time, nor shall such act to alter or amend the Bank’s “at-will” policy of
employment.
	 
	 	3.	 	If any Participant’s performance is rated as falling below job expectations or as less
than satisfactory at any time during the Plan Year, or if the Participant is subject to any
written disciplinary action, the bonus payment will be reduced or eliminated.




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WAL

Annual Bonus Plan





	 	4.	 	Participants who transfer during the year will participate in the Plan applicable to
the department they are in at year-end. If extenuating circumstances arise, exceptions to
this policy will be considered on a case by case basis.
	 
	 	5.	 	A change in officer title occurring during the year will not change the target bonus
percentage.
	 
	 	6.	 	Awards will be paid through the normal payroll process to participants. All awards will
be subject to applicable taxes. Awards do not constitute commissions or additional wages,
and Participants have no vested interests in the benefits of the Plan, except as expressly
provided for herein.
	 
	 	7.	 	Awards under this Plan will be used in calculating covered earnings for benefit
purposes for the 401(k) and Life Insurance Plans but not for Long Term Disability
Insurance.
	 
	 	8.	 	Timely and accurate completion of all business plans, reports, budgets and other
planning exercises is required for payment under the Plan.
	 
	 	9.	 	Acknowledgment from the HR Department that offices and officers have conformed to bank
policy in timeliness of annual reviews, controllable turnover, and all other areas of HR
administration is required for payment under this Plan.
	 
	 	10.	 	Performance measurements and statistics will be based on calculations completed by the
Finance Division of WAL. Any questions about the results or the bonus calculations must be
submitted to the Plan Administrator within 30 days after the calculations have been
completed and published, after which time no inquiries will be considered.
	 
	 	11.	 	Management retains the right in its sole discretion to adjust bonuses to reflect
“windfall” changes (i.e., transfer of unusually large accounts or loans between offices,
etc.).
	 
	 	12.	 	This Plan is governed and interpreted by the Plan Administrator, whose decisions shall
be final. This is a discretionary program and the Plan Administrator or the Board of
Directors of WAL reserves the right to terminate or alter this bonus program at any time.
	 
	 	13.	 	Participants are eligible to participate in only one annual bonus plan (could also be
paid out quarterly), and Management has the discretion to assign any team member to the
particular plan it deems appropriate.
	 
	 	14.	 	The intent of Bank Management is to fairly reward team members for adding value to the
Bank. If any adjustments need to be made to allow this Plan to accomplish its purpose, the
Incentive Compensation Committee in its sole discretion can make those adjustments.




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WAL

Annual Bonus Plan




Sample Calculation:





	1.	 	WAL EPS Performance is weighted 35%





	 	 	 	 	 
	EPS Performance	 	WAL EPS
	Year-end WAL EPS
	 	$	1.30	 
	 
	 	 	 	 
	% of EPS Target Bonus Paid
	 	 	75	%






See table on page 2





	2.	 	Organic Loan Growth Performance is weighted 10%





	 	 	 	 	 
	Loan Growth	 	WAL Parent
	Loan Growth
	 	$350MM
	 
	 	 	 	 
	% of Loan Growth Target Paid
	 	 	75	%






See table page 3





	3.	 	Organic Customer Funds Growth Performance is weighted 25%





	 	 	 	 	 
	Customer Funds Growth	 	WAL Parent
	Customer Funds Growth
	 	$225MM
	 
	 	 	 	 
	% of Customer Funds Growth Target Paid
	 	 	50	%






See table page 3





	4.	 	Quality Control factors are weighted 30% at the Bank level with 10% weighting






	 	•	 	Regulatory Examines (level 2 or better achieved)
	 
	 	•	 	Internal Audits (passing grade on all internal audits)
	 
	 	•	 	Credit Quality






	 	o	 	Non-performing assets did not exceed .65% of average total loans
	 
	 	o	 	Net charge-offs did not exceed .50% of average total loans






	 	 	Passed at the 100% level for example purposes




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WAL

Annual Bonus Plan




WAL Annual Bonus Payment




Participant has a base salary of $60,000

Target Bonus of 8%

Target Bonus — $4,800.00




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EPS	 	 	Loan	 	 	Customer Funds	 	 	Quality	 
	$	4,800	 	 	$	4,800	 	 	$	4,800	 	 	$	4,800.	 
	X	 35	%	 	X	 10	%	 	X	 25	%	 	X	 30	%
	 	 	 	 	 	 	 	 	 	 	 
	$	1,680	 	 	$	480	 	 	$	1,200	 	 	$	1,440	 
	X	 75	%	 	X	 75	%	 	X	 50	%	 	X	 100	%
	 	 	 	 	 	 	 	 	 	 	 
	$	1,260	 	 	$	360	 	 	$	600	 	 	$	1,440	 






TOTAL PAYOUT IS $1,260.00+360.00+600.00+1,440.00 = $3,660.00





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