These excerpts taken from the TESO 10-K filed Feb 27, 2009.
SHORT TERM INCENTIVE Plan EMT
The Tesco Corporation Short Term Incentive Plan (STIP) is a compensation plan designed to motivate participating employees of TESCO and its affiliates to work as a team to accomplish the overall profitability goals of TESCO, as well as provide incentive to each individual to meet his or her business unit, business line and personal objectives.
The STIP is approved by the Board of Directors of TESCO and is reviewed annually and may be modified or discontinued in the sole discretion of the Board of Directors. The STIP for calendar year 2009 has been approved by the Board of Directors as set forth below.
SHORT TERM INCENTIVE Plan EMTSTYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">2009
The Tesco Corporation Short Term Incentive Plan
The STIP is approved by the Board of Directors of TESCO and is reviewed annually and may be
FACE="Times New Roman" SIZE="2">Plan Parameters
In order to reward employees for individual performance, taking into account Company financial
FACE="Times New Roman" SIZE="2">The following formula applies to employees covered by the 2009 STIP:
Executive Management Team (EMT) members who qualify will have an additional multiplier applied to their
FACE="Times New Roman" SIZE="2">Return On Capital Employed or ROCE, for each calendar year shall be calculated as: Pre-tax Operating Income ÷ Invested CapitalSTYLE="margin-top:12px;margin-bottom:0px">Pretax Operating Income for each calendar year means Earnings Before Interest and Taxes (does not include interest income, interest expense, foreign exchange
gains or losses and other items of income or expense properly classified below the operating income line of the Companys income statement).
SIZE="2">Invested Capital for each calendar year shall be calculated as the average of:
(Shareholders Equity + Interest
FACE="Times New Roman" SIZE="2">(Shareholders Equity + Interest Bearing Debt* - Cash) on December 31
is the sum of these two percentages. This will be multiplied by an EPS-based factor between 1.0 and 2.0. If TESCOs