1、 The 2012 Hotel Annual Bonus Plan Greater China Region Room for you Purpose At IHG we believe in rewarding strong individual and company results. To achieve this goal, we offer our employees in eligible positions a competitive total compensation program that consists of base salary and annual bonus.
2、 The Hotel Annual Bonus Plan is designed to reward employees for achievement of positive hotel financial performance and strong individual performance. Comprehensive reward package How the plan works IHGs Annual Bonus Plan rewards you for helping hotel meets annual performance goals. When you partic
3、ipate in the plan, youll have an annual bonus target, expressed as a percentage of your base salary. The amount you actually receive will depend on your own performance and hotel GOP in 2012 financial year. General Manager Hotel Management Committee Base salary Provides a competitive reward recognis
4、ing the market value of your role and your skills, experience and performance Annual bonus Rewards you for achieving your annual key performance objectives & demonstrating leadership competencies, including our Winning Ways. Rewards your contribution to IHGs annual financial success TOTAL COMPENSATI
5、ON OPPORTUNITY Your annual bonus target X Overall performance score = Your actual award Your annual bonus target is based on position At the end of 2012, youll earn an overall performance score based on your individual performance and IHGs financial performance (see page 2) Your actual award will be
6、 your annual bonus target multiplied by the overall performance score earned = + 2 Operating Hotel Bonus Guidelines Target Bonus Opportunity The target annual bonus opportunity is determined by the position held at a Hotel. The table below details the individual bonus target levels, by position. The
7、 actual bonus earned is based on actual performance levels in relation to target/budget performance levels, as defined on the following pages. Position Minimum Target Bonus Opportunity as a % of Base Salary General Manager (IC/Indigo/CP/HI) General Manager (HIEX) 30% 20% Hotel Executive Committee (a
8、ll brands)* 20% *IHG strives to provide consistent incentive opportunities to Hotel Executive Committee members across our family of brands and strongly encourages hotel owners to provide target annual bonus opportunities at this level. However, subject to the terms of any relevant employment contra
9、ct, eligibility of Hotel Executive Committee members below the General Manager level for the annual bonus opportunity and the target amount for such bonus opportunity ultimately require the endorsement of the employing entity. Overall Performance Score Your overall performance score will be based on
10、 two measures: 1. Hotel Gross Operating Profit (GOP) 70% of target bonus 2. Individual Overall Performance Rating (OPR) 30% of target bonus Clear, challenging, but attainable goals are essential to the success of the plan. Hotel Gross Operating Profit is based on actual GOP results as compared to th
11、e final approved IHG budget for the year. It is the responsibility of the VP/Director of Operations to ensure the IHG budget is acceptable to the owner. The Overall Performance Rating (OPR) is determined in accordance with the IHG Performance Management process and is based on the immediate managers
12、 assessment of the individuals achievement of annual Key Performance Objectives (KPO) and display of leadership competencies including IHGs Winning Ways. Bonus Calculation The level of financial performance and individual OPR achieved will dictate a combined multiplier from the Bonus Performance Mat
13、rix which in turn will be applied to the bonus target opportunity detailed previously. The Bonus Performance Matrix on next page demonstrates how bonus payouts increase in line with improved financial and personal performance. 3 Performance LevelOverall Performance RatingIndividual Performance Payou
14、t %2.00%2.015%2.522.5%Target3.030%3.533.75%4.037.5%4.541.25%Maximum5.045%Individual Performance(30% of Target Bonus)Bonus Performance Matrix Performance LevelPerformance(% of Target GOP Achieved)GOPPayout %Target10070%10172%10274%10376%10478%10580%10682%10784%10886%10988%Aspirational11090%11193%1129
15、6%11399%114102%Maximum115105%Gross Operating Profit (GOP)(70% of Target Bonus) Bonus payouts are calculated on a straight-line pro-rata basis. For example, if financial results are 101.5% of target, the GOP Payout % would be 73%. Once the OPR and hotel GOP scores have been determined, an overall per
16、formance score is calculated as shown below: Example General Manager: Target Bonus %: 30% Performance Factors: GOP of own Hotel = 102% of Target Individual OPR = Consistent Over Performance 4.0 Performance multiplier: GOP Hotel Individual OPR Total = + = 74% 37.5% 111.5% Bonus Payment %: 30% x 111.5
17、% = 33.45% Bonus Payment: Annual Salary x 33.45% OPR+ Hotel GOP 37.5% 111.5% Bonus Payout Bonus target Annual Salary 111.50% Actual Bonus 74% 102% of Target, payout is 74% OPR+Hotel GOP Individual OPR 4 30% Base on December monthly salary 4 Example Hotel Management Committee: Target Bonus %: 20% Per
18、formance Factors: GOP of own Hotel = 104% of Target Individual OPR = Very Good / 3.0 Performance multiplier: GOP Hotel Individual OPR Total = + = 78% 30% 108% Bonus Payment %: 20% x 108% = 21.6% Bonus Payment: Salary x 21.6% Proration This section illustrates how partial year calculations should be
19、done, in the event of new hires, separations, transfers, promotions, etc. As noted above, bonus plan calculations should be made using full months. If any change in status occurs on or before the 15th of the month (the 1st through the 15th), it will be counted as if it occurred on the 1st of the mon
20、th. If a status change occurs after the 15th (the 16th through the 31st), it will be counted as if it occurred on the 1st of the following month. Consistent use of this guideline will prevent loss or interruption of bonus opportunity, and will prevent any duplicate payments from occurring in the eve
21、nt of a transfer. Example 1: External New Hire after 1 October Assume a new General Manager, hired externally starts on Monday 1st November. Since the hire date is after 1 October, this person is not eligible for a bonus for the year. Example 2: External New Hire on/before 1 October Assume a new Exe
22、cutive Assistant Manager (EAM), hired externally starts on Monday 10th May, with a salary of 2,000 per month. Based on hotel financial performance (full year) and individual performance (since hire date), the overall payout % is 110%. OPR+ Hotel GOP 30% 78% 108% Individual OPR is 3 104% of Target, p
23、ayout is 78% Bonus Payout Annual Salary 108% Actual Bonus Bonus target OPR+Hotel GOP 20% Base on December monthly salary 5 Here is the bonus calculation: Eligible Months Eligible Salary Bonus Payout May is counted, since the hire date occurs before the 15th. Eligible months include May- Dec, or 8 mo
24、nths. 2,000/month x 8 months = 16,000 16,000 x 20% bonus target x 110% payout % = 3,520. Comment: It does not matter whether he received any bonus for the first 9 days of May from the previous employer. We pay in full months. Example 3: Transfer to Existing Hotel with a Transitional Break Assume a G
25、eneral Manager transfers from hotel A to hotel B. The last day with Hotel A is 27 September and the effective date of new assignment is Monday 1 November. At Hotel A, his salary was 4,000 per month. Hotel As full year (January-December) financial performance was 105% of target, for a payout % of 80%
26、. The GMs individual performance at Hotel A was rated 3.5 based on KPOs and assessment of leadership competencies from January-September, so his individual payout % is 33.75%. The overall payout % is therefore 113.75% (80% + 33.75%). At Hotel B, his salary is 4,500 per month. Hotel Bs financial (GOP
27、) performance is 100% of budget. The GMs individual performance at Hotel B was considered too new to rate, so a rating of 3.0 is assumed. Eligible Months Eligible Salary Bonus Payout Hotel A Portion The month of September is included in the calculation for Hotel A, since 27 September falls after the
28、 15th. Therefore, eligible months include January September, or 9 months. 4,000/month x 9 months = 36,000 36,000 x 30% bonus target x 113.75% payout % = 12,285. Hotel B Portion Two months 4,500/month x 2 months = 9,000 9,000 x 30% bonus target x 100% payout % = 2,700 Comment: There is no payout duri
29、ng the transitional period between 28 September and 31 October. Example 4: Separation from Hotel Assume an ExCom member leaves the hotel to take a GM role in another IHG region. Last day of work is Friday, 15 January. Salary was 4,000. The hotel exceeded its January GOP budget by 30% for a maximum p
30、ayout % of 105%. An individual performance rating of 3.0 is assumed for an individual payout % of 30%. Eligible Months Eligible Salary Bonus Payout The month of January is counted, since the 15th is “on or before the 15th”. 4,000/month x 1 month = 4,000 4,000 x 20% bonus target x 135% payout % = 1,0
31、80. Comment: if he starts at the new hotel on Monday, 18 January, the new hotel would not count January. Pre-Opening Bonus Guidelines The hotel pre-opening bonus guidelines are intended to ensure a fair and consistent approach to providing General Managers or Executive Committee members an appropria
32、te bonus opportunity for their performance during the pre-opening phase. Guiding Principles for Pre-Opening Bonus No Reduction in Bonus OpportunityIn principle, General Managers and Executive Committee employees hired during pre-opening phase should not suffer reduction or disruption of bonus opport
33、unity but should continue with the standard bonus target opportunity (30% for GM, 20% for Executive Committee, etc.) during the pre-opening period, based on date of hire/secondment with the hotel. 6 Use of GOP Performance MeasureHotel Gross Operating Profit should be used as a performance measure du
34、ring pre-opening phase if possible. However, if the hotel enters the system after 1st October, and there are therefore less than three (3) months of GOP measurement, then GOP should not be used for bonus calculation for the final portion of the year, as such a short period may not represent “stabili
35、sed” GOP for incentive purposes. Instead of GOP, use OPR (see below.) Use of OPR with Pre-Opening KPOsDuring pre-opening, or during the initial operating period (very late in the year) where GOP cannot be used as a stabilised performance measure, the Individual Overall Performance Rating (OPR) shoul
36、d be used with 100% weight (versus 30% weight), and would therefore be the sole performance measure for bonus calculation. Key Performance Objectives (KPOs) should be assigned in relation to specific pre-opening milestones such as pre-opening budget performance, revenue, event bookings, staffing, et
37、c. Regional Responsibility The VP/Director of Operations, Regional VP of Human Resources and Regional Chief Financial Officer will be responsible for supporting the above guidelines, and in gaining support from the respective owners as early as possible on the use of GOP, OPR, etc. CommunicationPre-
38、Opening GMs and Executive Committee members should understand clearly how their bonus will be determined, prior to the start of their assignment. There should be no surprises at the end of the year. Clear communication will prevent surprises. Pre-Opening Period For purposes of bonus calculation, the
39、 pre-opening period covered by the above guidelines includes: All calendar months worked by the employee for the new hotel prior to the month the hotel opened, if the hotel opened (in the system) on or before the final quarter of the year (on or before 1st October). See Figure 1; OR All calendar mon
40、ths worked by the employee for the new hotel, if the hotel opens during the final quarter of the year (after 1st October). See Figure 2; or Bonus calculations are prorated by full calendar months. If the employee is hired by (or seconded to) the new hotel on or before the 15th of the month, bonus el
41、igibility will be calculated from the 1st of that month. If the date is after the 15th of the month, eligibility becomes effective the 1st of the following month. Likewise, if the hotel enters the system on or before the 15th of the month, bonus calculation will be based on the full month. If the op
42、ening date is after the 15th of the month, the hotel will be deemed as opened on the 1st of the following month, for bonus purposes. The bonus for any months worked at a previous IHG hotel or corporate office, prior to the pre-opening assignment, will be the responsibility of the previous hotel or o
43、ffice. Use of the above proration rules will ensure there is neither a gap nor any overlap in bonus calculations. Q4Calendar YearHotel Opens (enters the system)Follow Pre-Opening GuidelinesFollow Hotel Bonus PlanFigure 1Q4Calendar YearHotel Opens (enters the system)Follow Pre-Opening GuidelinesFigur
44、e 2 7 OPR Calculation for Pre-Opening (GOP is not Used) The calculation of bonus for a Pre-Opening period will use the Overall Performance Rating (OPR) measure only. This measure will have 100% weight (versus 30% weight in the standard hotel bonus plan). Participants whose OPR is below 2.0 will rece
45、ive no bonus, regardless of pre-opening KPO performance. The payout matrix will therefore be as follows: Performance LevelOverall Performance RatingIndividual Performance Payout %2.00%2.050%2.575%Target3.0100%3.5112.5%4.0125%4.5137.5%Maximum5.0150%Individual Performance (Pre-Opening)(100% of Target
46、Bonus, if no GOP measure) Example General Manager Target Bonus %: 30% Performance Factors Individual OPR = Very Good / 3.5 Total = x = 30% 112.5% 33.75% Actual working months = 4 Bonus Payment: Annual Salary x 33.75% x 4/12 Eligibility Employees must be hired and new hotels must be in the system on
47、or before the beginning of the final quarter of the Plan Year (on or before 1st October), to be eligible to participate in this Plan. If an employee is hired during the Plan Year, or changes bonus plan, target opportunity, working hours or location during the Plan Year, the bonus earned will be pror
48、ated based on the date of hire/change. If the employee is hired or if they change plans or have a new target opportunity on or before the 15th of the month, bonus Bonus Payout 30% 112.5% 4 /12 year Total Bonus Payout Annual Salary 8 eligibility will be calculated from the 1st of that month. If the h
49、ire/change date is after the 15th of the month, eligibility becomes effective the 1st of the following month. Eligible Management Committee/Key Department Heads positions are: Director, Marketing or Sales & Marketing Director of Rooms/Rooms Division Manager Director/Manager, Finance & Business Suppo
50、rt Director of Engineering Director/Manager, Human Resources Resident Manager/EAM/Hotel Manager Director/Manager, Food & Beverage Director/Manager, Revenue Any deviation from the above eligibility list requires approval of all relevant Human Resources and Operations management up to and including Vi
