Document:

Exhibit 10.1

 

Summary of ImmunoGen Incentive Bonus Plan

 

Our executive officers participate in an annual incentive bonus program applicable to all our employees. Each participant in this program is eligible to receive a target bonus expressed as a percentage of her or her annual base salary which, in the case of our executive officers, is set by the Compensation Committee of our Board of Directors. For 2018, target bonuses for our executive officers are as follows:

 

	
Title
    	
 
    	
Target Bonus
   (as % of Annual Base Salary)
    	
 
    
	
President and CEO
    	
 
    	
75
    	
%
    
	
Executive Vice President
    	
 
    	
40
    	
%
    
	
Senor Vice President or Vice President
    	
 
    	
35
    	
%
    

 

Set forth below is a description of the ImmunoGen Incentive Bonus Plan for 2018.

 

Purpose

 

The ImmunoGen Incentive Bonus Plan is a key component of an employee’s total annual cash compensation.  Through this plan, an employee is eligible to receive an annual cash bonus based on ImmunoGen’s achievement of key corporate objectives and the employee’s individual contributions to these objectives.  The plan is intended to:

 

·                  Strengthen the link between employees’ financial success and ImmunoGen’s success

·                  Direct employees’ focus toward research, development and business objectives which represent key performance milestones for ImmunoGen

·                  Reinforce our pay-for-performance environment, where employees are rewarded for outstanding contributions

·                  Ensure market competitive cash opportunities

 

The Incentive Bonus Plan is discretionary.  The Compensation Committee of our Board of Directors has full discretion to determine when, if and how bonuses will be granted.  Its design and administration allow it to be integrated with our performance management program.

 

Key Features

 

The Incentive Bonus Plan period runs in conjunction with the calendar year.  Corporate and individual objectives that align with ImmunoGen’s strategic goals are established early in the year, so employees can work toward those objectives.

 

An overall bonus pool is funded based on the achievement of corporate objectives. Corporate performance is measured based on the achievement of pre-established objectives.  These objectives are not individually weighted, but are evaluated holistically in the context of ImmunoGen’s progress over the year toward its strategic goals.  The Compensation Committee evaluates both (1) degree of achievement of the corporate objectives, and (2) the effort required to realize the actual achievement, in terms of both the degree of difficulty assumed when the objective was set as well as performance in response to unanticipated difficulties.  The bonus pool may exceed 100% of target (but not more than a maximum of 150%), based on exceptional performance.  If the Compensation Committee determines

 

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that, based on its evaluation of ImmunoGen’s performance towards the corporate objectives, the bonus pool would be less than 50% of target, no bonus pool would be funded for that year.

 

Target bonuses under the Incentive Bonus Plan are expressed as a percentage of an employee’s annual base salary.  The award that an employee receives is initially based on an assessment of his/her achievement of individual objectives, including impact to the organization, how objectives were achieved, and demonstration of ImmunoGen’s values/cultural attributes.  These factors are assessed in the context of the individual’s overall performance.  This assessment of performance results in a percentage that can range from 0-125% of target.  This percentage is then multiplied by the corporate performance percentage to determine the employee’s bonus payout.

 

The foregoing notwithstanding, the Compensation Committee has determined that the bonus payout for our President and Chief Executive Officer will be based exclusively on the achievement of the corporate objectives.

 

Eligibility

 

An employee must meet all of the following criteria in order to be eligible for the Incentive Bonus Plan.

 

·                  Regular full-time or part-time employee

·                  Employed on or before September 30th of the applicable year.  An employee hired between January 1st and September 30th will be eligible for a prorated award to reflect the portion of the year employed with ImmunoGen.    An employee hired after September 30th will not be eligible for an award for that year.

·                  Employed on the date that the bonus is paid, provided that the foregoing shall not diminish any benefit to which an employee may be entitled under ImmunoGen’s Severance Pay Plan for Vice Presidents and Higher.  Payment of the bonus will be made by March 15 of the year following the end of the preceding calendar year.

 

Payout Guidelines

 

An employee’s bonus target percentage and salary on December 31st is used to calculate the employee’s bonus award.  If an employee has a salary decrease or reduction of hours during the bonus period, the earned salary during the bonus period will be used to calculate the bonus award.  With respect to any changes in position and/or salary made after September 30 of a given year, ImmunoGen will have discretion in changing the target percentage and salary amount to be used in calculating the employee’s bonus award for the bonus period.

 

Approved Leaves of Absence

 

If an employee is on an approved leave of absence for more than ninety (90) days during the applicable year, the employee is eligible for a prorated bonus, payable on the payment date following the applicable year.  The employee’s bonus will be based upon the achievement of corporate and individual performance as outlined above.

 

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Administration

 

Bonus awards outside the foregoing eligibility requirements require the approval of the Head of Human Resources (or, in the case of any executive officer, the Compensation Committee of our Board of Directors).

 

3Exhibit

Aircraft Usage Policy

Revised: November 8, 2017

		
	I.
	POLICY

This policy governs the use of commercial and private Group 1 corporate aircraft (the "aircraft") by Group 1 associates and their guests.  Any use of the aircraft must be approved by the Chairman of the Board or the President and CEO of Group 1 Automotive.

		
	II.
	GUIDELINES ON USAGE

		
	A.
	General.  Aircraft use is generally restricted to company business, or entertainment related to company business.  Personal use of the aircraft is discouraged due to unfavorable IRS deductibility, compensation, and disclosure treatment (see Appendix A).  In exigent circumstances, personal use of the aircraft shall be considered by and require the approval of the Chairman of the Board and the President and CEO of Group 1. 

		
	B.
	Supplement to Commercial Air Travel.  Private aircraft should be used to supplement commercial air travel.  Common sense should be employed when planning travel so that use of corporate aircraft hours is maximized.

		
	C.
	Upgrades.  Upgrades of aircraft should be limited to situations where seating capacity and/or range are considerations.  Any proposed upgrade should be noted on the Aircraft Request Form and approved by the person approving the use of the aircraft.

		
	D.
	Primary Service Area; Other Limitations.  Aircraft operations are limited to the Primary Service Area of the Fractional Interest Program (all of the contiguous United States, southern Canada, Mexico, and portions of the Caribbean).  In addition, aircraft operations are currently limited to FAR Part 135 operations, which impose certain restrictions on runway length and weather reporting capability at the destination airfield.  Most primary and regional airports will meet FAR Part 135 requirements; however, in certain cases, these restrictions may require the selection of an alternate destination airfield.

		
	E.
	Corporate Risk.  Those responsible for planning and/or booking a trip should consider who is traveling on the aircraft from a corporate risk perspective.  Situations in which a number 

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of top executives or board members are traveling together should be avoided.  A point system will be used to determine who may fly together on either Group 1 corporate aircraft or any commercial flight (domestic or international) (see Appendix B). In addition to the point system set forth on Appendix B, it shall be expressly prohibited for the Chief Executive Officer to travel on any aircraft (private or commercial) with either the President (if different than the CEO) or the President-US Operations.  Additionally, no more than three non-CEO directors may travel on the same private aircraft with the Chief Executive Officer, and no more than four directors should travel together on the same private aircraft.

		
	III.
	COORDINATING TRAVEL; APPROVAL

		
	A.
	Travel Coordinator.  All travel must be coordinated through the office of the President and CEO.  Every attempt should be made to coordinate travel arrangements at least 48 hours in advance.  

		
	B.
	Requests; Approval.  Requests for use of the aircraft shall be submitted by completing an “Aircraft Request Form” (see Appendix C) to the appropriate approving person.  Use of the aircraft by Group 1 associates must be approved by the Chairman of the Board or the President and CEO.  Use of the aircraft by members of the Board of Directors of Group 1 must be approved by the Chairman of the Board.

		
	C.
	Notice of Upcoming Trips.  The office of the President and CEO will publish a notice of upcoming trips to company officers, so that if there is a business need for other employees to travel to that destination, they may be considered for transport.

		
	D.
	Trip Log.  The office of the President and CEO will maintain a trip log to track, with respect to each trip, the date, destination(s), business purpose, and passengers.

		
	IV.
	OTHER MATTERS

		
	A.
	Regulation; Group 1 Policy.  Aircraft passengers must abide by all jurisdictional laws and regulations, fractional program terms and conditions, as well as all Group 1 corporate policies.

		
	B.
	Logistics.  Passengers should arrange to be at the departure location at least 15 minutes prior to the assigned departure time.  Delays can add unnecessary expense to the program.  Travelers are encouraged to travel “light” as there are weight and luggage space restrictions on smaller aircraft.

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	C.
	Ground Transportation; Catering.  Ground transportation and in-flight meals can be coordinated through the travel coordinator.  Ground transportation should be limited to taxi, rental car or town car service (no limousines).

3

Appendix A

Personal Use of the Aircraft

Where the company-provided airplane is used for personal purposes (including entertainment) by employees, their relatives or other individuals accompanying them, the value of the trip(s) must generally be included in the taxable income of the employee, unless the individual repays the company using a method generally acceptable to the IRS (SIFL rate).  In November of 2007, the Compensation Committee of the Board approved the personal use of the aircraft by Earl Hesterberg, the President and CEO, for up to 40 hours per year, provided that Mr. Hesterberg reimburse the company using the generally accepted rate cited above. 

The Jobs Creation Act of 2004 added a provision to limit the company’s deductions in the case of personal use by specified individuals (including corporate officers) of corporate aircraft to the amount the individual includes as taxable compensation.  Based on IRS procedures, companies must determine all expenses relating to the aircraft based on occupied seat hours or occupied seat miles flown, and allocate these expenses to any personal use by specified individuals, their relatives and other companions.

Where a spouse, dependent or other individual accompanies the employee on a trip that is a qualified business trip for the employee, their expenses will be considered personal and therefore taxable to the employee unless it can be established that there was a bona fide business purpose for them to make the trip (and substantiation requirements are met).  This is a facts and circumstances determination, to be determined by the Chairman of the Board and President and CEO.

Where expenses for the personal use of a company aircraft are attributable to an employee that is subject to the excess compensation limitations under Section 162(m) of the Internal Revenue Code of 1986, the company’s deduction will be disallowed to the extent that the employee’s income (including the expenses attributable to personal use of the aircraft) exceed the annual $1 million excess compensation threshold. 

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Appendix B

Points System for Determining Flight Risk

In determining who may fly together on the aircraft, consideration must be given to succession risk.  The following point system will help determine if passengers should be scheduled on alternative forms of transportation to minimize these risks.  Any score over 100 requires the approval of the Chairman of the Board of Directors.  Absent such approval, the trip planner shall be required to re-schedule the trip to get the score below 100.

Position                Points per passenger

CEO and/or President                50
Board Member                15
President, U.S. Operations            25
Executive Vice President            25
Senior Vice President                25
Vice President (two or less)            15
3rd or 4th Vice President             25

TOTAL                    ____

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Appendix C

Aircraft Request Form

Name:                             Request to Upgrade Aircraft to Type:
Department:                                                 
Date of Proposed Trip:                 Reason:   Range   Capacity   (circle one/both)

Business purpose of proposed trip: 
                                                                                                        

Leg 1:

	
					
	 
	 
	City, State
	 
	Airport

	Origin:
	 
	 
	 
	 

	Destination:
	 
	 
	 
	 

Passengers: 
                                                                                                        

Ground Transportation:                 Catering:                 

Leg 2:

	
					
	 
	 
	City, State
	 
	Airport

	Origin:
	 
	 
	 
	 

	Destination:
	 
	 
	 
	 

Passengers: 
                                                                                                        

Ground Transportation:                 Catering:                 

Leg 3:

	
					
	 
	 
	City, State
	 
	Airport

	Origin:
	 
	 
	 
	 

	Destination:
	 
	 
	 
	 

Passengers: 
                                                                                                        

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Appendix C

Ground Transportation:                 Catering:                 

Date:                     Approved by:                         
CEO or Chairman (only)

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