This excerpt taken from the RSTO 10-Q filed Jun 7, 2006.
On June 1, 2006, the Compensation Committee of the Board of Directors of the Company established the performance objectives for the award of cash bonuses under the Companys Management Incentive Plan (the Plan) to eligible employees, including the executive officers of the Company, for fiscal year 2006. Under the Plan, if the Company achieves specified results with respect to the Companys EBT (earnings before taxes) for fiscal year 2006, the Company will fund a bonus pool to be paid to eligible employees. The size of the bonus pool will be determined by the Companys EBT performance.
The amount that each participant will receive of any bonus pool is a percentage of the participants base salary, with the specific amount of such bonus, if any, dependant upon the level of achievement of individual and Company performance goals. For the Companys President and CEO, the amount received of any such bonus pool will be from 20% of base salary to up to 200% of base salary, with a target bonus amount of 100% of base salary. For the Companys other executive officers, the amount such officers will receive of any bonus pool ranges from 8% to 10% of base salary to up to 80% to 100% of base salary, with target bonus amounts ranging from 40% to 50% of base salary.
Any bonus payments will be conditional upon the participants continued employment by the Company through the bonus payment date and will be pro rated for employees who have served for less than the full fiscal year.
On June 1, 2006, the Compensation Committee also increased Mr. Friedmans annual base salary to $600,000, effective as of May 1, 2006.