--000000000000e352f106436eb9f7 Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Thanks for the opportunity to provide input- and excited to hear that we will be re-designing the incentive plans for the field employees. I do think the incentive plans today have a lot of qualifiers for them, and streamlining them would be impactful. Additionally, target setting is important. Here's a potential example for consideration- sharing in thread for visibility to the team. *Key Metrics and Weighting for CSMs/CGMs:* 1. Monthly Revenue vs Target: 40% 2. Gross Margin vs Target: 20% 3. Starts of Care vs Target: 20% 4. Client Retention: 20% (Currently the SOC retention goal negatively impacts operations if there are a higher volume of Tier 3 clients- would love for client retention to be based off of Tier 1/2 clients only) *Key Metrics and Weighting for GMs/RMs/RDs* 1. Monthly Revenue vs Target: 40% 2. Gross Margin vs Target: 20% 3. Starts of Care vs Target: 15% 4. Client Retention: 15% (Currently the SOC retention goal negatively impacts operations if there are a higher volume of Tier 3 clients coming on board... would love for client retention to be based off of Tier 1/2 clients only, and think we should explore SOC retention vs the full census of Tier 1/2 clients) 5. *Controllable *EBITDA : 10% (Targets should be realistic) *GM's to continue being able to earn off of referral accounts, but I would remove the "gating" *Monthly Incentive TBD- (Level for CGM/CSM, Level for Supervisors, Level for GM, Level for Regional Managers, Level for RDs) *Total Performance and Payout structure:* Below 85%: 0 85-89%: 85% 90-99% of goal: 90% 100-109% of goal: 100% 110% or more of goal: 110% Monthly Incentive Payout Examples Scenario Revenue Margin Starts Retention Weighted Payout % Payout ($1,000 Target example) *1 =E2=80=93 Strong Month* 110% 103% 108% 105% 110% =C3=97 0.4 + 100% =C3= =97 0.2 + 100% =C3=97 0.2 + 100% =C3=97 0.2 =3D 106% $1,060 *2 =E2=80=93 Above Target Revenue, Others On Target* 115% 100% 100% 100% 11= 0% =C3=97 0.4 + 100% =C3=97 0.2 + 100% =C3=97 0.2 + 100% =C3=97 0.2 =3D 104% $1,040 *3 =E2=80=93 Revenue On Target, Starts Low (Below 85%)* 100% 100% 80% 100% = 100% =C3=97 0.4 + 100% =C3=97 0.2 + 0 =C3=97 0.2 + 100% =C3=97 0.2 =3D 80% $800 *4 =E2=80=93 Revenue Slightly Below, Margin Excellent* 88% 112% 92% 97% 85%= =C3=97 0.4 + 110% =C3=97 0.2 + 90% =C3=97 0.2 + 90% =C3=97 0.2 =3D 93% $930 *5 =E2=80=93 All Metrics Just Above Minimum (85=E2=80=9389%)* 87% 88% 86% 8= 9% 85% =C3=97 0.4 + 85% =C3=97 0.2 + 85% =C3=97 0.2 + 85% =C3=97 0.2 =3D 85% $850 *6 =E2=80=93 Below Minimum* 80% 82% 80% 80% 0 =C3=97 0.4 + 0 =C3=97 0.2 + 0= =C3=97 0.2 + 0 =C3=97 0.2 =3D 0% $0 *7 =E2=80=93 Excellent Retention Month* 100% 100% 100% 112% 100% =C3=97 0.4= + 100% =C3=97 0.2 + 100% =C3=97 0.2 + 110% =C3=97 0.2 =3D 104% $1,040 *8 =E2=80=93 Mixed Performance* 108% 97% 105% 83% 100% =C3=97 0.4 + 90% =C3= =97 0.2 + 100% =C3=97 0.2 + 0 =C3=97 0.2 =3D 7