exv10w14



 







Exhibit 10.14




Short Term Incentive Program for Shared Services




Overview: The short term incentive program for Shared Service Members (SSMs) has several key
objectives. This program will align personal rewards with quality of contribution, but first and
foremost will incent the key leaders of the bank to continue to honor the bank’s commitment to our
shareholders, our community, our customers and our employees. The bonus pool will be generated by 2
components:




	 	•  	Return on Average Equity (ROAE)
	 	•  	Earnings per Share Growth (EPSG)




Defined terms are contained in the Summary of Sterling Bank Short Term Incentive Programs overview
document.



Eligibility: All designated officer members of the Shared Services Team and other officers and
non-officers assigned to the Shared Services department.



Who are members of the Shared Services Team? See Exhibit “A”




How will the incentive bonus pool be generated and allocated? The total annual incentive bonus
available to SSMs will be generated based on achieving and exceeding the hurdle rates of ROAE of
12% annually and EPSG of 12% annually. If the hurdle rates are achieved, the amount of the pool
available to SSMs will be calculated based upon the proportion of base salaries of SSMs to the
total salaries of all bank officers multiplied by a factor of the excess of ROAE (for instance 27%
of the excess of 12% ROAE). If the EPSG hurdle rate is achieved the bonus pool would be fully
awarded. If the EPSG is less than or equal to 9.99%, no bonus pool would be awarded. If the EPSG
were <12% but 3 10%, 75% of the pool would be awarded. If the EPSG hurdle rate is
exceeded the bonus pool would be increased as follows:



	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	•
	 	 	14	%	 	-
	 	 	125	%
	

	 	•
	 	 	16	%	 	-
	 	 	133	%
	

	 	•
	 	 	18	%	 	-
	 	 	150	%
	

	 	•
	 	 	20	%	 	-
	 	 	200	%






Ninety percent of all pools will be awarded to officers and 10% of all pools will be awarded to
non-officer employees.



Shared Services Members serving in dual capacities as a member of the Shared Service team and a
Regional CEO of Bank Offices or Profit Centers will receive 60% of their short term incentives from
this program. The remaining 40% of their short term incentive payments will be derived from the
bonus pools generated by the bank offices or profit centers they support in a “Regional CEO”
capacity.



How will the 2 components be measured and the pools allocated? Both financial measures are
calculated at the Bancshares level and will be performed by the Finance Division and certified by
the CFO. The President/CEO will award annual incentive bonuses to SSMs and other officers assigned
to the Shared Services department based on individual scorecards (results 3 3). Bonuses to
non-officers assigned to the Shared Services department will be allocated by the SSM directly
responsible for the non-officer(s) based on individual scorecard(s) of the non-officer(s) (results
3 3).



 









 





How often is the bonus paid? Annually. Bonuses will be paid 60 days following the end of each
calendar year. To receive a bonus, the employee must be employed by Sterling Bank on the date the
bonuses are paid.



Who administers the incentive program? The bonus pool calculations and related financial triggers
will be performed by the Finance staff and approved by the CFO. The President/CEO will perform the
allocation of the bonus pool to individual SSMs, subject to the approval of the HR Programs
Committee of the Board of Directors, as applicable. The HR department will make the payroll entries
to pay the approved bonus.



Will the participants in this incentive program participate in other incentive programs? While it
is expected that the SSMs will only participate in this short-term incentive pool, there may be
instances when, with Board approval, SSMs are permitted participation in specific “new initiative”
pools.



 









 





Exhibit A




Shared Services Members




	 	 	 
	Downey Bridgwater

	 	President & CEO
	 
	 	 
	Steve Raffaele

	 	EVP & Chief Financial Officer
	 
	 	 
	Daryl Bohls

	 	EVP & Chief Credit Officer
	 
	 	 
	Glenn Rust

	 	EVP & Chief Operations Officer
	 
	 	 
	Jim Goolsby

	 	EVP & General Counsel
	 
	 	 
	Graham Painter

	 	SVP, Corporate Communications
	 
	 	 
	Wanda Dalton

	 	EVP, Chief Human Resource Officer
	 
	 	 
	Allen Brown

	 	Regional CEO
	

	 	Weighted to acknowledge participation in Regional Pool
	 
	 	 
	Danny Buck

	 	Regional CEO
	

	 	Weighted to acknowledge participation in Regional Pool
	 
	 	 
	Clinton Dunn

	 	Regional CEO
	

	 	Weighted to acknowledge participation in Regional Pool
	 
	 	 
	Travis Jaggers

	 	Regional CEO
	

	 	Weighted to acknowledge participation in Regional Pool
	 
	 	 
	Mike Skowroneck

	 	Regional CEO
	

	 	Weighted to acknowledge participation in Regional Pool
	 
	 	 
	Bob Smith

	 	Regional CEO
	

	 	Weighted to acknowledge participation in Regional Pool