Management By Objectives (MBO) Incentive Plan

Management By Objectives (MBO) Incentive Plan applies to all Business Support Unit (BSU) Manila employees, and other employees who are allocated with the MBO Incentive scheme. Eligible employees will have a MBO Incentive scheme clause in the job offer and employment contract.

This plan is based on company business performance and on individual performance (quarterly MBOs) as aligned with RingCentral’s strategic goals.

The quarterly MBO payout will be pro-rated based on the Individual (MBO) performance.

The matrix indicated below is to be strictly followed. If there are any deviations and/or discretionary allocations, it has to be aligned with both the Talent Rewards and Finance team.

Individual Performance

The amount of the quarterly MBO payout will be determined based on management’s assessment of the employee’s quarterly MBO achievement, up to a maximum of 110% of target payout (Quarterly Individual Performance Payout Factor).

Quarterly Incentive Calculation

• Individual Performance Factor = Quarterly MBO Achievement

• Company Performance Multiplier = Quarterly Company Multiplier

• Quarterly Performance Payout = (Quarterly Base Salary x Incentive Tarfer x Pro-ration factor (if applicable) x Quarterly Individual Performance Factor x Company Performance Multiplier

Quarterly MBO Payout Calculation

• Pro-ration Factor = 38/90 = 0.422

• Quarterly Company Performance Payout

Quarterly Company Multiplier = 105%

• Quarterly Individual Performance Payout

Quarterly Individual Performance Payout = 100%

• Quarterly MBO Payout = Quarterly Base Salary = Php800,000/4 = Php200,000

(Php200,000x10%) x .422 x 105% x 100%) = Php8,862.00