Document:

Exhibit 10.1

 

CERTAIN INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. OMITTED INFORMATION HAS BEEN REPLACED IN THIS DOCUMENT WITH [***].

 

 

 

SFN Group, Inc.

 

Corporate Executive Management

 

2011 Variable Pay Plan

 

	
2011   SFN Group -Corporate Executives
    	
 
    	
©Copyright   2011, SFN Group, Inc.
    

 

1

 

The following Variable Pay Plan (the “Plan”) is designed to reward Plan Eligible Associates for achievement of specific goals as well as to provide an incentive to retain talent and encourage future performance with SFN Group, Inc. (“SFN” or the “Company”).  This Plan has been established to align your individual success with that of your Business Unit and SFN.

 

Your dedication and commitment to the Company is greatly appreciated.  Thank you for your continued support now and in the future.

 

Effective Date/Plan Year

 

This Plan is in effect beginning December 27, 2010 through December 25, 2011 (the “Plan Year”).  This Plan supersedes any prior plans as of the date it becomes effective.  This Plan may be extended beyond the Plan Year at the sole discretion of SFN Group.

 

Eligibility begins on the first day of the accounting quarter after an associate begins employment as a Plan Eligible Associate and terminates immediately when an associate’s employment as a Plan Eligible Associate ends.  Please refer to SFN Group’s “Variable Pay Plan Policies & Procedures” located online at Inside Excellence for specific eligibility requirements.  A plan acknowledgement stating that a Plan Eligible Associate has received his/her plan document and agrees to the terms and conditions contained within the plan document AND the “Variable Pay Plan Policies & Procedures” document are requirements to be eligible to participate in this Plan.

 

Annual Performance Measures

 

In addition to your annual salary, an eligible associate has a Variable Pay Opportunity based on a percentage of his/her base salary. The “Variable Pay Period” is the Plan Year.  Compensation under this Plan is based on annual results and is therefore earned on an annual basis.  A Plan Eligible Associate may not earn more than 200% of the Plan Eligible Associate’s Variable Pay Opportunity under the Plan.

 

The Variable Pay Opportunity is made up of the following two performance measures:

 

1)              Adjusted Earnings per Share (EPS) from Continuing Operations:   Earnings per share serves as an indicator of a company’s profitability.  The figure tells the portion of a company’s profit allocated to each outstanding share of common stock.

 

2)              Operational Goal Measurement:   Operational Goal Measurements are intended to give focus to initiatives that are important to the stability and profitability of SFN Group.

 

The three categories of Operational goals are as follows:

 

a)              [***]

b)             [***]

c)              [***]

 

2

 

Weighting of Plan Components

 

The targets have been established on the basis of anticipated growth rates, market analysis, Company objectives, and other considerations.  The targets have been set at the beginning of the year, but are subject to change at the sole discretion of the Board of Directors.  Any change to the targets will be communicated to the Plan Eligible Associates.

 

1)              Adjusted Earnings per Share (EPS) from Continuing Operations:  80% of the Variable Pay Opportunity is based on the Company attaining an adjusted EPS from continuing operations Target for fiscal year 2011.  In order for a Plan Eligible Associate to earn any compensation under this adjusted EPS component, the Company must attain a minimum adjusted EPS threshold from continuing operations as represented in the scale below.  The adjusted EPS component will not be earned if 2011 adjusted EPS from continuing operations is less than the threshold.  If the adjusted EPS threshold is reached, the component payout will be precisely interpolated between Goal Levels as reflected in the chart below.

 

The Executive Team’s 2011 annual incentive opportunity will be conditioned on certain pre-established EPS levels as summarized below:

 

	
Performance Level
    	
 
    	
Adjusted EPS
   from
   Continuing
   Operations
    	
 
    	
Payout as %
   of Target
    	
 
    
	
Maximum
    	
 
    	
[***]
    	
 
    	
200
    	
%
    
	
Plan/Target
    	
 
    	
[***]
    	
 
    	
100
    	
%
    
	
Threshold
    	
 
    	
[***]
    	
 
    	
50
    	
%
    
	
Below Threshold
    	
 
    	
[***]
    	
 
    	
0
    	
%
    

 

If the adjusted EPS threshold is attained, the payout will be precisely interpolated between Performance Levels.  100% of any amount earned pursuant to the EPS performance may be adjusted at the discretion of the Board of Directors after considering the Company’s performance compared with its peer companies.

 

Note: Adjusted EPS from Continuing Operations will be adjusted to reflect the impact of any acquisitions based on the development and finalization of the acquired company’s Board approved business plan.

 

2)              Operational Goal Measurement:   20% of the Variable Pay Opportunity is based on the attainment of one or more categories of the Operational Goals.  Each Component will be weighted equally for achievement.

 

The three main categories of Operational goals are as follows:

 

3

 

a)              [***]

b)             [***]

c)              [***]

 

If any of the measurement thresholds are attained, the payout will be precisely interpolated between Performance Levels as reflected in the chart below.  100% of any amount earned pursuant to the above grids may be adjusted at the discretion of the Board of Directors after considering the Company’s performance compared with its peer companies.

 

 

 

	
 
    	
 
    	
Operational Goal Measurement
    	
 
    	
Percentage of
    	
 
    
	
Goal Level
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
Component
    	
 
    
	
Maximum
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
200
    	
%
    
	
Plan/Target
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
100
    	
%
    
	
Threshold
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
50
    	
%
    
	
Below Threshold
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
0
    	
%
    

 

Plan Acknowledgement

 

I hereby acknowledge receipt and agree with the foregoing variable pay plan for FY 2011 (the “Plan”), which is in effect from December 27, 2010, through December 25, 2011.  Except as otherwise stated in the Plan, the Plan supersedes and replaces all other variable pay plans that previously applied to your current position with SFN Group.

 

I also understand that any exception or modification to the Plan must be approved by the Compensation Committee of the Board of Directors.

 

	
Via Electronic Signature/Acceptance
    	
 
    	
 
    
	
 
    	
 
    	
Date
    

 

4

 

Other Terms of the Plan

 

The Chief Human Resources Officer or his/her designee will administer this Plan and have the authority to implement, operate, and interpret this Plan and to take such action as he/she deems equitable and consistent with the purpose of this Plan in particular circumstances.  No exception or modification to this Plan will be valid unless it has been approved in writing by the Chief Human Resources Officer or his/her designee.

 

The Company reserves the right to change, modify, alter, amend, or cancel this Plan at any time, with or without notice and with or without consideration.

 

This Plan is governed by SFN’s “Variable Pay Plan Policies & Procedures.” Please review the “Variable Pay Plan Policies & Procedures” located online at SFN’s Inside Excellence.  This document will address how the Variable Pay Plans work in a variety of circumstances including new hires, job changes, salary changes, changes in work schedule, leave of absence, and the like.  Please note that these guidelines apply only for Plan Eligible Associates.

 

Important Information

 

The formulas described in this plan are for illustrative purposes only.  SFN reserves the right, in its sole discretion, to make appropriate adjustments in determining annual incentive awards and any payouts for individuals or all plan participants, including the right to decline to pay awards to any or all plan participants

 

All plan provisions are subject to state laws and statutory requirements.  If you have any questions regarding this plan, please contact SFN Group Human Resources at 866-HELP-456.

 

 

FISCAL YEAR 2011

 

5Exhibit 10.2

 

 

SFN Group

 

Corporate Executive

Management Variable Pay Plan

 

2010 Variable Pay Plan

 

For Plan Year: Fiscal 2010

 

	
2010 Corporate Executives
    	
 
    	
 
    	
 
    	
 
    
	
Revision Date - 419/10
    	
 
    	
 
    	
 
    	
©Copyright 2010, SFN Group
    

 

1

 

Introduction

 

The following Variable Pay Plan (the “Plan”) is designed to reward Plan Eligible Associates for achievement of specific goals as well as to provide an incentive to retain talent and encourage future performance with Spherion (“The Company”).  This Plan has been established to align your individual success with that of Spherion.

 

Your dedication and commitment to the Company is greatly appreciated.  Thank you for your continued support now and in the future.

 

Effective Date/Plan Year

 

This Plan is in effect beginning December 28, 2009 through December 26, 2010 (the “Plan Year”).  This Plan supersedes any prior plans as of the date it becomes effective.  This Plan may be extended beyond the Plan Year at the sole discretion of Spherion.

 

Eligibility

 

Eligibility to participate in this Plan is within Spherion’s sole discretion, but in general is based on an Associate’s position.  For purposes of this Plan, the term Plan Eligible Associate means an Associate who Spherion determines is eligible to participate in this Plan.

 

Eligibility begins on the first day of the accounting quarter after an Associate begins employment as a Plan Eligible Associate and terminates immediately when an Associate’s employment as a Plan Eligible Associate ends.

 

	
Quarter
    	
 
    	
First Day of 
   Quarter
    	
 
    	
Last Day of 
   Quarter
    	
 
    	
Start/Transfer 
   Date Must be on 
   or Before to be 
   Eligible
    	
 
    	
Bonus Payment 
   Date
    
	
Q1, 2010
    	
 
    	
12/28/09
    	
 
    	
03/28/10
    	
 
    	
12/27/09
    	
 
    	
 
    
	
Q2, 2010
    	
 
    	
03/29/10   
    	
 
    	
06/27/10
    	
 
    	
03/28/10
    	
 
    	
 
    
	
Q3, 2010
    	
 
    	
06/28/10
    	
 
    	
09/26/10
    	
 
    	
06/27/10
    	
 
    	
 
    
	
Q4, 2010
    	
 
    	
09/27/10
    	
 
    	
12/26/10
    	
 
    	
09/26/10
    	
 
    	
02/25/11
    

 

A plan acknowledgement stating that a Plan Eligible Associate has received his/her plan document and agrees to the terms and conditions contained within the plan document is a requirement to be eligible to participate in this Plan.

 

Change of Positions/Leave of Absence/ Other types of Pro-rated Compensation

 

In order to be eligible for or earn any compensation under this Plan, a Plan Eligible Associate must remain employed by Spherion in some capacity through the last date of the Variable Pay Period.  If the Plan Eligible Associate does not meet this condition, he/she will not earn any compensation under this Plan (see the Variable Pay Period/Payment section below).  If a Plan Eligible Associate meets this condition, but was actively employed as a Plan Eligible Associate for only a part of the Variable Pay Period, his/her compensation under this Plan will be pro-rated based on the number of full weeks he/she was actively employed as a Plan Eligible Associate.  Some examples include:

 

1.               New Hire

2.               Leave of Absence - LOA

3.               Change in Work Classification Status (full-time vs. part-time)

 

2

 

4.               Position Changes resulting in Incentive Plan &/or Salary Changes

5.               P&L Roll Up Structure Changes (with no position change)

 

For a detailed explanation of the administrative policies on how these and other types of Personnel Changes affect the Plan Eligible Associate’s compensation, please refer to the Pro-Ration Guidelines.

 

Components

 

A Plan Eligible Associate has a Variable Pay Opportunity which is determined as a percentage (%) of his/her base salary.

 

The Variable Pay Opportunity is made up of two components: (1) Adjusted Earnings per Share (EPS) from Continuing Operations  and (2) Individual & Operational Goal Measurement.  The specifics of these components are described in more detail below.

 

To the extent permitted by the law, Spherion shall have the right to withhold, deduct, and/or set off any and all amounts for bad debts (including write-offs), re-bills, credits, or other adjustments from the payment calculations.

 

1.              Adjusted Earnings per Share (EPS) from Continuing Operations:  80% of the Variable Pay Opportunity is based on the Company attaining adjusted EPS from continuing operations Target for fiscal year 2010.  In order for a Plan Eligible Associate to earn any compensation under this adjusted EPS component, the Company must attain a minimum adjusted EPS threshold from continuing operations as represented in the scale below.  The adjusted EPS component will not be earned if 2010 adjusted EPS from continuing operations is less than the threshold.  If the adjusted EPS threshold is reached, the component payout will be precisely interpolated between Goal Levels as reflected in the chart below.

 

The Executive Team’s 2010 annual incentive opportunity will be conditioned on certain pre-established EPS levels as summarized below:

 

	
Performance Level
    	
 
    	
Adjusted 
   EPS from 
   Continuing 
   Operations
    	
 
    	
Payout as % 
   of Target
    	
 
    
	
Maximum
    	
 
    	
$0.42
    	
 
    	
200
    	
%
    
	
Above Target
    	
 
    	
$0.19
    	
 
    	
125
    	
%
    
	
Target
    	
 
    	
$0.10
    	
 
    	
100
    	
%
    
	
Plan
    	
 
    	
$0.06
    	
 
    	
80
    	
%
    
	
Threshold
    	
 
    	
$0.00
    	
 
    	
40
    	
%
    
	
Below Threshold
    	
 
    	
<$0.00
    	
 
    	
0
    	
%
    

 

If the adjusted EPS threshold is attained, the payout will be precisely interpolated between Performance Levels.  100% of any amount earned pursuant to the EPS performance may be adjusted positively or negatively at the discretion of the Board of Directors after considering the Company’s performance compared with its peer companies.

 

3

 

Note: Adjusted EPS from Continuing Operations will be adjusted to reflect the impact of any acquisitions based on the development and finalization of the acquired company’s Board approved business plan.

 

2.              Individual & Operational Goal Measurement.   20% of the Variable Pay Opportunity is based on the attainment of one or more categories of the Individual and Operational Goals.  Each Component will be weighted equally for achievement.

 

The three main categories of Individual and Operational goals are as follows:

 

a.               Sales Excellence CUE Scorecard

b.              Key Employee Voluntary Turnover Ratio

c.               Core Value Partnering

 

Individual goals and performance measures are assigned to each operational goal.  If the assigned category goal is reached, the component payout will be precisely interpolated between Goal Levels as reflected in the chart below:

 

	
 
    	
 
    	
Operational Goal Measurement
    	
 
    	
 
    	
 
    
	
Goal Level
    	
 
    	
Sales Excellence 
   CUE Scorecard
    	
 
    	
“Key” Employee 
   Vol. Turnover
    	
 
    	
Core Value 
   Partnering
    	
 
    	
Percentage of 
   Component
    	
 
    
	
Achievement
    	
 
    	
4.78
    	
 
    	
14.00
    	
%
    	
6.00
    	
 
    	
200
    	
%
    
	
Target
    	
 
    	
4.35
    	
 
    	
17.90
    	
%
    	
5.26
    	
 
    	
100
    	
%
    
	
Threshold
    	
 
    	
3.97
    	
 
    	
24.00
    	
%
    	
4.20
    	
 
    	
50
    	
%
    
	
Below Threshold
    	
 
    	
3.96
    	
 
    	
24.10
    	
%
    	
4.10
    	
 
    	
0
    	
%
    

 

Variable Pay Period/ Payment

 

The “Variable Pay Period” is the Plan Year.  Compensation under this Plan is based on annual results and is therefore earned on an annual basis.  A Plan Eligible Associate must be employed by Spherion through the last date of the Variable Pay Period to be eligible for or earn any compensation under this Plan (see Termination of Employment section below).  Any compensation earned under this Plan will be paid within 45 business days after the close of the accounting year.

 

Termination of Employment

 

Eligibility to participate in or receive any compensation under this Plan ceases immediately upon termination of employment with Spherion regardless of whether such termination of employment is due to resignation, termination without cause, termination for cause, or otherwise.

 

A Plan Eligible Associate, whose employment with Spherion terminates prior to the end of the Variable Pay Period, will not be eligible for or be considered to have earned compensation under this Plan in whole or in part.

 

4

 

In addition, any Plan Eligible Associate who resigns his/her employment or who is terminated for cause after the end of the Variable Pay Period but before Spherion pays the actual compensation awarded  under this Plan will not be considered to have met the eligibility requirements of the Plan.  The final eligibility requirement of the Plan is for the otherwise eligible associate to remain employed with the Spherion between the end of the Variable Pay Period and the payout date unless the otherwise Plan Eligible Associate is terminated by Spherion without cause. If the otherwise Plan Eligible Associate is terminated by Spherion without cause after the Variable Pay Period but before Spherion pays the compensation, the Plan Eligible Associate will be considered to have met the necessary requirements for compensation under this Plan.

 

The eligibility requirements described in this Plan are void to the extent that they conflict with state or local law.

 

Bonus Cap

 

A Plan Eligible Associate may not earn more than 200% of the Plan Eligible Associate’s opportunity for the Plan Year under this Plan.

 

Disputes; Conflicts

 

If there is a dispute related to this Plan, including, but not limited to, a dispute over eligibility or award, it will be resolved by the Compensation Committee or its designee, whose decision shall be final.

 

Notwithstanding the foregoing, or anything to the contrary in the Plan, in the event of any conflict between the terms of this Plan, and the terms of the Plan Eligible Associate’s Executive Employment Agreement with the Company, the terms of the Employment Agreement shall govern.

 

At-Will Employment

 

The only matter this Plan is intended to address is variable pay compensation.  Nothing in this Plan shall alter or be construed as to alter the at-will employment status of any Plan Eligible Associate.  The Plan Eligible Associate’s employment is at-will and may be terminated by either party at any time, with or without cause.

 

Amendments, Exceptions or Termination of the Plan

 

The Compensation Committee or its designee will administer this Plan and have the power to implement, operate, and interpret this Plan and to take such action as it deems equitable and consistent with the purpose of this Plan in particular circumstances.  No exception or modification to this Plan will be valid unless it has been approved in writing by the Compensation Committee or its designee.

 

The Company reserves the right to change, modify, alter, amend, or cancel this Plan at any time, with or without notice and with or without consideration.

 

Acknowledgement

 

We hereby acknowledge receipt and agree with the foregoing variable pay plan for FY 2010 (the “Plan”), which is in effect from December 28, 2009, through December 26, 2010.  Except as otherwise stated in the Plan, the Plan supersedes and replaces all other variable pay plans that previously applied to your current position with Spherion.

 

5

 

We also understand that any exception or modification to the Plan must be approved in writing by the Chief Human Resources Officer and/or his or her designee and the President of the Business Group of Spherion Corporation.

 

On Behalf of Spherion

 

 

	
 
    	
 
    	
01/01/10
    
	
John   Heins, SVP Chief Human Resources Officer
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
On   Behalf of Employee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Via   Electronic signature/acceptance
    	
 
    	
 
    
	
 
    	
 
    	
Date
    

 

6

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