Document:

fy18eaipexhibit10_15.htm

Exhibit 10.15

 

JOHN WILEY & SONS, INC.

FY 2018 QUALIFIED EXECUTIVE ANNUAL INCENTIVE PLAN

PLAN DOCUMENT

CONFIDENTIAL

MAY 1, 2017

 

 

  

  

  

 

CONTENTS

 

	
Section

	
Subject

	
Page

	
I.

	
Definitions

	
2

	
II.

	
Plan Objectives

	
3

	
III.

	
Eligibility

	
3

	
IV.

	
Performance Targets and Measurement

	
3

	
V.

	
Performance Evaluation

	
4

	
VI.

	
Payouts

	
5

	
VII.

	
Administration and Other Matters

	
5

 

  

1

  

 

	
  

	
I.

	
DEFINITIONS

 

Following are definitions for words and phrases used in this document.  Unless the context clearly indicates otherwise, these words and phrases are considered to be defined terms and appear in this document in italicized print:

 

base salary   A participant's base salary as of July 1, 2017, or the date of hire or promotion into the plan, if later, adjusted for any amount of time the participant may not be in the plan for reasons of hire, death, disability, retirement and/or termination.

 

business criteria An indicator of financial performance, chosen from the business criteria listed in Section  4(b)(ii) of the shareholder plan. The following business criteria are used in this plan:

 

earnings per share (EPS)  Earnings per share, calculated consistently using the methodology for the Company’s reported diluted earnings per share in its Summary of Operations.

 

contribution to profit  (CTP) Net revenue less cost of sales, direct expenses and allocated shared service costs, calculated consistently with the Company’s reported segment results

 

revenue  (business) Gross annual revenue, net of provision for returns, cancellations, etc., in a manner consistent with amounts reported by the Company

 

revenue  (corporate) Gross annual revenue, net of provision for returns, cancellations, etc., as reported by the Company

 

business unit The Company, a business or subsidiary of the Company, or a global unit of the Company.

 

Company    John Wiley & Sons, Inc.

 

Executive Compensation and Development Committee (Committee) The committee of the Company's Board of Directors responsible for the review and approval of executive compensation.

 

financial goal   A targeted level of attainment of a given business criteria.

 

financial results   The published, audited financial results of the Company and the business financial results derived therefrom.

 

participant   A person selected to participate in the plan.

 

payout   Actual gross dollar amount paid to a participant under the plan, if any, for achievement of assigned performance targets, as further discussed in this plan.

 

performance levels

threshold   The minimum acceptable level of achievement of a financial goal in order to earn a payout, expressed as a percentage of target ( e.g., 90% of target).

 

target   Achievement of the assigned financial goal-100%.

 

outstanding   Superior achievement of a financial goal, earning the maximum payout, expressed as a percentage of target (e.g., 110% of target).

 

Performance target A participant's objective to achieve specific financial goals for assigned business criteria in the plan year, as approved by the Committee.  A performance target comprises all of the financial goals for the business criteria in a business unit.

 

plan    This FY 2018 Qualified Executive Annual Incentive Plan.

 

  

2

  

 

plan year  The twelve-month period from May 1, 2017 to April 30, 2018, or a portion of this period, at the discretion of the Committee.

 

shareholder plan  The Company’s 2014 Executive Annual Incentive Plan.

 

target incentive amount   The amount that a participant is eligible to receive if he/she achieves 100% of his/her performance targets for a business unit. The sum of the target incentive amounts for all business units assigned to a participant is the total target incentive amount.

 

target incentive percent   The percent applied to the participant's total annual incentive opportunity to determine the target incentive amount for this plan. Generally, for the plan year 2018, the target incentive percent for this plan is 75%.

 

total annual incentive opportunity  The total target amount that a participant is eligible to receive from all annual incentive plans, including this plan.

 

	
  

	
II.

	
PLAN OBJECTIVES

The plan is intended to provide the officers and other key colleagues of the Company and of its subsidiaries, affiliates and certain joint venture companies, upon whose judgement, initiative and efforts the Company depends for its growth and for the profitable conduct of its business, with additional incentive to promote the success of the Company.

	
  

	
III.

	
ELIGIBILITY

A participant is selected by the President & CEO and recommended for participation to the Committee, which has sole discretion for determining eligibility, from among those colleagues in key management positions deemed able to make the most significant contributions to the growth and profitability of the Company.  The President and CEO of the Company is a participant.

	
  

	
IV.

	
PERFORMANCE TARGETS AND MEASUREMENT

The CEO recommends and the Committee adopts, in its sole discretion, performance targets and performance levels for each participant, not later than 90 days from the commencement of the plan year.  No performance target or performance level may be modified after 90 days from the commencement of the plan year.

	
A.  

	
Performance targets, comprising one or more financial goals, are defined for each business unit.  Each financial goal is assigned a weight, such that the sum of the weights of all financial goals for a business unit equals 100%.

	
B.  

	
Each participant is assigned performance targets for one or more business units , based on the participant’s position, responsibilities, and his/her ability to affect the results of the assigned business unit. For each participant, each business unit is assigned a weight, such that the sum of the weights of all business units for a participant equals 100%. Collectively, all business unit performance targets constitute the participant’s plan year objectives.

	
C.  

	
Each financial goal is assigned performance levels (threshold, target and outstanding).

 

  

3

  

 

 

	
  

	
V.

	
PERFORMANCE EVALUATION

	
A.

	
Financial Results

	
1.  

	
At the end of the plan year, the financial results for each business unit are compared with that unit’s financial goals to determine the payout for each participant.

	
2.  

	
In determining the attainment of financial goals,

	
a.  

	
the impact of foreign exchange gains or losses will be excluded.

	
b.  

	
the impact of any of the events (1) through (9) listed in Section 4(b)(ii) of the shareholder plan, if dilutive (causes a reduction in the financial result), will be excluded from the financial results of any affected business unit.

	
3.  

	
Award Determination

	
a.  

	
Achievement of threshold performance of at least one financial goal of a performance target is necessary for a participant to receive a payout for that performance target.

	
b.  

	
The unweighted payout factor for each financial goal is determined as follows:

	
1.  

	
For performance below the threshold level, the payout factor is zero.

	
2.  

	
For revenue performance at the threshold level, the payout factor is 25%. For EPS and CTP performance at the threshold level, the payout factor is 50%.

	
3.  

	
For revenue performance between the threshold and target levels, the payout factor is between 25% and 100%, determined on a pro-rata basis.  For EPS and CTP performance between the threshold and target levels, the payout factor is between 50% and 100%, determined on a pro-rata basis.

	
4.  

	
For performance at the target level, the payout factor is 100%.

	
5.  

	
For revenue performance between the target and outstanding levels, the payout factor is between 100% and 175%, determined on a pro-rata basis.  For EPS and CTP performance between the target and outstanding levels, the payout factor is between 100% and 150%, determined on a pro-rata basis.

	
6.  

	
For revenue performance at or above the outstanding level, the payout factor is 175%.  For EPS and CTP performance at or above the outstanding level, the payout factor is 150%.

	
7.  

	
If revenue performance is below the threshold level, the maximum payout for EPS and CTP is 100%.  If revenue performance is at or above the threshold level, and below the target level, the maximum payout for EPS and CTP is 125%.

	
c.  

	
A participant’s payout is determined as follows:

	
1.  

	
Each financial goal’s unweighted payout factor determined above times the weighting of that financial goal equals the weighted payout factor for that financial goal.

	
2.  

	
The sum of the weighted payout factors for a business unit’s financial goals equals the payout factor for that performance target.

	
3.  

	
The               participant’s total annual incentive opportunity

 times

the participant’s target incentive percent

 times

the business unit weight

times

the performance target payout factor

 equals

the participant’s payout for that business unit

 

 

  

4

  

 

	
4.  

	
The sum of the payouts for all the business units assigned to a participant equals the participant’s total payout.

	
d.  

	
If the payout for the Company is higher than the payout for the other business units, the payout for the Company will be reduced to the level of the highest business unit payout.

	
e.  

	
The Committee may, in its sole discretion, reduce a participant’s payout to any level it deems appropriate.

 

 

                                               VI.                                             PAYOUTS

	
A.  

	
Payouts will be made within 90 days after the end of the plan year.

 

 

	
B.  

	
In the event of a participant's death, disability, retirement or leave of absence prior to the payout for the plan year, the payout, if any, will be determined by the Committee.  Any such payout will be calculated as noted in Section V. 

	
C.  

	
A participant who resigns, or whose employment is terminated by the Company, with or without cause, before the payout for the plan year, will not receive a payout.  Exceptions to this provision shall be made with the approval of the Committee, in its sole discretion.

	
D.  

	
A participant who is hired or promoted into an eligible position during the plan year may receive a prorated payout as determined by the Committee, in its sole discretion.

VII.                     ADMINISTRATION AND OTHER MATTERS

	
A.  

	
The plan will be administered by the Committee, which shall have authority in its sole discretion to interpret and administer this plan, including, without limitation, all questions regarding eligibility and status of any participant, and no participant shall have any right to receive a payout or payment of any kind whatsoever, except as determined by the Committee hereunder.

	
B.  

	
The Company will have no obligation to reserve or otherwise fund in advance any amount which may become payable under the plan.

	
C.  

	
In the event that the Company is required to file a restatement of its financial results due to fraud, gross negligence or intentional misconduct by one or more employees, and/or material non-compliance with Securities laws, the Company will require reimbursement of any annual incentive compensation awarded to all participants in the amount by which such compensation exceeded any lower payment that would have been made based on the restated financial results, for the fiscal year in which the restatement was required, to the full extent required or permitted by law. 

If a participant is directly responsible for or involved in fraud, gross negligence or intentional misconduct that causes the Company to file a restatement of its financial results, the Company will require reimbursement of all annual incentive compensation awarded to such participant, for the fiscal year in which the restatement was required, to the full extent required or permitted by law.

 

  

5

  

 

	
D.  

	
This plan may not be modified or amended except with the approval of the Committee, in accordance with the provisions of the shareholder plan.

	
E.  

	
In the event of a conflict between the provisions of this plan and the provisions of the shareholder plan, the provisions of the shareholder plan shall apply.

 

  

6fy18stratplanexhibit10_16.htm

JOHN  WILEY  &  SONS,  INC.

FY 2018  EXECUTIVE  ANNUAL  STRATEGIC  MILESTONES  INCENTIVE  PLAN

ADMINISTRATIVE  DOCUMENT

CONFIDENTIAL

MAY 1, 2017

  

  

  

CONTENTS

	
Section

	
Subject

	
Page

	
I.

	
Definitions

	
2

	
II.

	
Plan Objectives

	
4

	
III.

	
Eligibility

	
4

	
IV.

	
Performance Objectives and Measurement

	
4

	
V.

	
Performance Evaluation

	
4

	
VI.

	
Payouts

	
5

	
VII.

	
Administration and Other Matters

	
6

  

2

  

 

   I.           DEFINITIONS

 

Following are definitions for words and phrases used in this document.  Unless the context clearly indicates otherwise, these words and phrases are considered to be defined terms and appear in this document in italicized print:

 

achievement level

 

threshold   The minimum acceptable level of achievement of strategic milestones.  If threshold performance is achieved against all strategic milestones, a participant may earn 50% of the target incentive amount for which he/she is eligible.

 

target   Achievement in aggregate of target strategic milestones.  Each individual strategic milestone is set at a level that is both challenging and achievable.  If target performance is achieved against all strategic milestones, a participant may earn 100% of the target incentive amount for which he/she is eligible.

 

outstanding   Superior achievement of strategic milestones, both in quality and scope, with limited time and resources.  If outstanding performance is achieved against strategic milestones, the maximum amount a participant may earn is 150% of the target incentive amount for which he/she is eligible.

 

base salary   The participant's base salary as of July 1, 2017, or the date of hire or promotion into the plan, if later, adjusted for any amount of time the participant may not be in the plan for reasons of hire, death, disability, retirement and/or termination.

 

Company    John Wiley & Sons, Inc.

 

Executive Compensation and Development Committee (Committee) The committee of the Company's Board of Directors responsible for the review and approval of executive compensation.

 

participant   A person selected to participate in the plan.

 

payout   Actual gross dollar amount paid to a participant under the plan, if any, for achievement of strategic milestones, as further discussed in this plan.

 

payout factor   Percentage of strategic milestones deemed achieved, applied to the target incentive amount, used to determine the payout for which a participant is eligible.

 

plan   The Company's Fiscal Year 2018 Executive Annual Strategic Milestones Incentive Plan described in this document and any written amendments to this document.

 

plan year   The twelve month period from May 1, 2017 to April 30, 2018, or a portion of this period, at the discretion of the Committee.

 

strategic milestone   A participant's objective to achieve specific results for FY 2018, including interim revised strategic milestones, if any, as approved and communicated in writing, as described in Sections IV and V below.  Strategic milestones are leading indicators of performance.

 

target incentive amount   The amount, if any, that a participant is eligible to receive if he/she achieves 100% of his/her strategic milestones.

 

target incentive percent   The percent applied to the participant's total annual incentive opportunity to determine the target incentive amount for this plan. Generally, for the plan year 2018, the target incentive percent for this plan is 25%.

 

  

3

  

 

total annual incentive opportunity The total target amount a participant is eligible to receive from all annual incentive plans, including this plan.

II.           PLAN OBJECTIVES

The purpose of the FY 2018 Executive Annual Strategic Milestones Incentive Plan is to enable the Company to reinforce and sustain a culture devoted to excellent performance, reward significant contributions to the success of Wiley, and attract and retain highly qualified executives.

III.           ELIGIBILITY

A participant is selected by the President and CEO and recommended for participation to the Committee, which has sole discretion for determining eligibility, from among those colleagues in key management positions deemed able to make the most significant contributions to the growth and profitability of the Company.  The President and CEO of the Company is a participant.

IV.           PERFORMANCE OBJECTIVES AND MEASUREMENT

	
A.

	
Strategic milestones are quantitative and qualitative individual objectives over which the participant has a large measure of control, which lead to, or are expected to lead to, improved performance for the Company in the future.  Strategic milestones are determined near the beginning of the plan year by the participant, and approved by President and CEO or the participant's manager, if the President and CEO is not the participant's manager.

	
B.

	
The strategic milestones for the President and CEO are reviewed and approved by the Committee.

	
C.

	
The strategic milestones for the President and CEO should be appropriately reflected in those of all other colleagues at all levels.  Each participant collaborates with his/her manager in setting strategic milestones.  The strategic milestones may be revised during the plan year, as appropriate.

	
D.

	
The determination of strategic milestones includes defining a target level of performance and the measure of such, and may include defining threshold and outstanding levels of performance and the measures of such.

V.           PERFORMANCE EVALUATION

	
A.

	
Achievement of a participant's strategic milestones will be determined at the end of the plan year by comparing results achieved to previously set objectives.

	
B.

	
The President and CEO will recommend for each participant an achievement level and a payout factor between 0 and 150% for achievement of all strategic milestones, by comparing results achieved to the previously set objectives.  In determining the payout factor, the overall performance on all strategic milestones will be considered.  The Committee will approve the payout factor and payout for all participants.

 

  

4

  

 

	
C.

	
Award Determination

STRATEGIC MILESTONES PAYOUT AMOUNT

total annual incentive opportunity X target incentive percent X payout factor

= Strategic Milestones Payout

	
  

	
1.

	
Notwithstanding anything to the contrary, the maximum payout, if any, a participant may receive is 150% of the target incentive amount.

	
  

	
2.

	
The foregoing strategic milestones payout calculation is intended to set forth general guidelines on how awards are to be determined.  The purpose of this plan is to motivate the participant to perform in an outstanding manner.  The President and CEO has discretion under this plan to take into consideration the contribution of the participant, the participant's management of his/her organizational unit and other relevant factors, positive or negative, which impact the Company's, the participant's organizational unit(s), and the participant's performance overall in determining whether to recommend granting or denying an award, and the amount of the award, if any.  If the participant is the President and CEO, such discretion is exercised by the Committee.

VI.           PAYOUTS

	
A.  

	
Payouts will be made within 90 days after the end of the plan year.

	
B.  

	
In the event of a participant's death, disability, retirement or leave of absence prior to the payout for the plan year, the payout, if any, will be recommended by the President and CEO to the Committee which shall have sole authority for approval of the payout.

	
C.  

	
A participant who resigns, or whose employment is terminated by the Company, with or without cause, before payout for the plan year, will not receive a payout.  Exceptions to this provision shall be made with the approval of the Committee, in its sole discretion.

	
D.  

	
A participant who transfers between businesses of the company, will have his/her payout prorated to the nearest fiscal quarter for the time spent in each business, based on the achievement of strategic milestones established for the position in each business, and based upon a judgment of the participant's contribution to the achievement of goals in each position, including interim revisions, if appropriate.

	
E.  

	
A participant who is appointed to a position with a different target incentive percent will have his/her payout prorated to the nearest fiscal quarter for the time spent in each position, based on the achievement of  strategic milestones established for each position.

 

 

  

5

  

 

	
F.  

	
A participant who is hired or promoted into an eligible position during the plan year may receive a prorated payout as determined by the President and CEO, in his/her sole discretion, subject to the approval of the Committee.

VII.           ADMINISTRATION AND OTHER MATTERS

	
A.

	
The plan is effective for the plan year.  It will terminate, subject to payout, if any, in accordance with and subject to the provisions of this plan.

	
B.  

	
This plan will be administered by the President and CEO, who will have authority to interpret and administer this plan, including, without limitation, all questions regarding eligibility and status of the participant, subject to the approval of the Committee.

	
C.  

	
In the event that the Company is required to file a restatement of its financial results due to fraud, gross negligence or intentional misconduct by one or more employees, and/or material non-compliance with Securities laws, the Company will require reimbursement of any annual incentive compensation awarded to all participants in the amount by which such compensation exceeded any lower payment that would have been made based on the restated financial results, for the fiscal year in which the restatement was required, to the full extent required or permitted by law. 

If a participant is directly responsible for or involved in fraud, gross negligence or intentional misconduct that causes the Company to file a restatement of its financial results, the Company will require reimbursement of all annual incentive compensation awarded to such participant, for the fiscal year in which the restatement was required, to the full extent required or permitted by law.

	
D.  

	
This plan may be withdrawn, amended or modified at any time, for any reason, in writing, by the Company.

	
E.  

	
The determination of an award and payout under this plan, if any, is subject to the approval of the President and CEO and the Committee.  This plan does not confer upon any participant the right to receive any payout, or payment of any kind whatsoever.

	
F.  

	
No participant shall have any vested rights under this plan.  This plan does not constitute a contract.

	
G.  

	
All deductions and other withholdings required by law shall be made to the participant's payout, if any.

  

6

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