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Incentive Compensation Plans
12 Months Ended
Dec. 31, 2011
Compensation Related Costs [Abstract]  
Compensation Related Costs, General [Text Block]

12. Incentive Compensation Plans

 

In May 2007, the Board of Directors approved the adoption of a new incentive compensation plan. This new plan was effective for fiscal year 2007 and replaced a previous plan. Under the plan, bonuses are payable quarterly in an amount not to exceed 18% of the Company’s Income from Operations for any period, subject to the Company achieving a minimum quarterly Income from Operations of at least $500,000. For fiscal years 2011 and 2010, the Board determined that the aggregate amount of incentive compensation available under the Plan shall be equal to 16% of the Company’s Income from Operations. The bonus pool is allocated to executives according to a specified formula, with a portion allocated to a middle management group determined by the Executive Committee of the Board of Directors.

 

The Company expensed a total of $290,000 and $457,000 to the participants of the bonus pool for 2011 and 2010, respectively.

 

The Company sponsors a Supplemental Executive Retirement Plan (SERP) to allow certain executives to defer a portion of their annual salary and bonus into a grantor trust. A grantor trust was established to hold the assets of the SERP. The Company funds the grantor trust by paying the amount deferred by the participant into the trust at the time of deferral. Investment earnings and losses accrue to the benefit or detriment of the participants. The SERP also provides for a discretionary matching contribution by the Company not to exceed 100% of the participant’s annual contribution. In 2011 and 2010, the Company did not provide a match. The participants fully vest in the deferred compensation three years from the date they enter the SERP. The participants are not eligible to receive distribution under the SERP until retirement, death, or disability of the participant. At December 31, 2011 and 2010, SERP assets were $185,000 and $232,000, respectively, and are included in “Other Assets” in the accompanying consolidated balance sheets. At December 31, 2011 and 2010, SERP liabilities were $190,000 and $238,000, respectively, and are included in “Other Non-Current Liabilities” in the accompanying consolidated balance sheets. The changes in the balances of SERP assets and SERP liabilities during 2011 and 2010 were due to net realized and unrealized investment gains/losses incurred by the plan.