10.3
Published on March 30, 2005
EXHIBIT 10.3
BARRETT BUSINESS SERVICES, INC.
SUMMARY OF ANNUAL CASH INCENTIVE BONUS
AWARD PROGRAM FOR EXECUTIVE OFFICERS
The executive officer compensation policy approved by the
Compensation Committee of Barrett Business Services, Inc. (the "Company"), in
November 1995 establishes three components of compensation: (1) salary, (2)
annual cash incentive bonus, and (3) incentive stock options. The Compensation
Committee approved a formula for calculating annual cash incentive bonuses,
based on the Company's annual Return on Equity ("ROE"). ROE is calculated by
dividing the Company's current year's net income (before taking into account the
provision for executive officer bonuses) by the Company's total shareholders'
equity as of December 31 of the preceding year. In February of each year, after
the Company's financial results for the prior year have been finalized, bonuses
are determined by multiplying the amount of each officer's salary paid during
the preceding year by the Company's ROE. The Company's Compensation Committee,
in its discretion, may approve the payment of additional bonus amounts in excess
of the amounts calculated under the pre-approved ROE formula.