Item No. 7c_supp 
Meeting Date:  April 12, 2016 
Incentive Pay Plan 
Commission Briefing 
April 12, 2016

Incentive Pay Plan 
Results oriented 
Financial performance exceeds budget 
Payout is fully earned when two values driven, non-financial goals are met 
Self-funding and taxpayer oriented 
Financial performance must be above threshold before plan pays out 
At least half the positive variance is retained by the Port 
A portion is returned to the airport (required amount) 
A portion will go to the tax levy fund to help offset future increases 
Values driven, socially responsible 
Focuses on the triple bottom line 
Pays out to employees first, executive leadership follows 
Doesn't add to fixed salary costs 
Capacity building 
Makes the Port stronger over time 

Results oriented, self-funding and Century Agenda focused 
2

Business Case 
Motivates exceptional performance 
Drives Century Agenda goals 
Supports working together as "One Port" 
Improves the Port's ability to compete for talent 
Makes the Port more competitive with private employers 
Differentiates the Port among public sector employers 
Is consistent with high-performing employers 
Benefits taxpayers, may help offset future levy
increases 
One Port creating jobs in our community 
3

Motivating Exceptional Performance 
TWO TYPES OF GOALS 
1. Financial 
Self-funding 
2. Values Driven, non-financial 
Focuses the Port on social responsibility
and environmental sustainability
commitments 
Results Oriented, Self-funding, Values Driven, Century Agenda Focused 
4

Incentive Pool Funding 
Adjusted Revenue Higher than
+  Budget 
Expenses Lower than Budget 
= Total Positive Variance                      Qualified
Employees 
Receive Incentive 
50% Retained 
by the Port               Incentive pool 
50% to 
Incentive Pool 
Financial                 Non-Financial
Goal Met            Goals: 25% ea. Max
50%                  50% 
Financial goals must be met to fund pool 
5

Pool Funding Example 
PLAN FUNDS ITSELF 
2016 Budget  2016 Actual*   Variance 
Total Revenue            $584.5m 
Less Aeronautical Revenue   - $257.4m 
Adjusted Revenue        = $327.1m    $339.9m     $12.8m 
Total Port Expense         $336.1m    $323.7m    + $12.4m 
Total Variance                               = $25.2m 
50% to the Payout Pool                  $12.6m 
*NOTE  2016 Actual is for illustrative purposes only, total variance supports
maximum plan payout 
Incentive plan funded by positive budget variance 
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Payout Method 
Incentive
Pool 

Employees                       Executives 
Step 5 (Max)     Step 5.1 (Max) 
Step 4         Step 4.1 
Step 3         Step 3.1 
Step 2         Step 2.1 
Step 1         Step 1.1 
Minimum 
Incentive plan pays from the bottom up 
7

Individual Payout Calculations 
Employees Earn Awards Based on Annual Performance Review Ratings 
Performance    Rating     Payout   Minimum  Step  Step  Step  Step   Step 5 - 
Rating     Distribution     Factor     Payout*    1     2     3     4    Maximum 
Unsatisfactory      0%      No Payout      0%     0%    0%    0%    0%      0% 
Contributing     0%  5%    1 X Payout     0.5%     1%    2%   3%    4%      5% 
Strong        65% - 70%    2 X Payout     1.0%     2%   4%   6%    8%      10% 
Highly
15% - 20%   3 X Payout    1.5%    3%   6%   9%   12%     15% 
Effective 
Exceptional     5% - 10%    4 X Payout     2.0%     4%    8%   12%   16%     20% 
Total Variance Needed to Fund            $2.4M                       $25.2M 
NOTES  payouts are based on employees eligible earnings during the plan year 
Payouts assume all goals, financial and non-financial, are met

Funding step determined by the size of the payout pool 
8

Variance Allocation 
Retained
by the Port 
Airport 
Tax Levy Fund 
Executives 
Employees         Incentive
Pool 

Total variance shared with stakeholders 
9

Values Driven Non-Financial Goals 
1.  Increase small business contracting participation
across the Port to 35%, including an increase to 4% for
Minority/Women-Owned Business Participation. 
2.  Define external customers, define customer
satisfaction and develop and implement an external
customer satisfaction survey. 
3.  Develop an environmental scorecard to reduce the
Port's environmental footprint. 

Focusing the Port on the triple bottom line 
10

Implementation 
June 1, 2016 Implementation 
Mid-year implementation will require
adjustments 
Variance eligible to fund the payout pool will be pro-
rated 
Earned awards based on employee earnings from
June through December are eligible 

Port results and employee earnings reflect June 1 implementation 
11