Specific Program for 2019. The Compensation Committee established a 2019
target bonus opportunity for Mr. Moise expressed as 95% of his base salary. On July 17, 2019, the Company entered into a separation letter agreement with Timothy M. Storer and reset his 2019 annual cash incentive bonus at $150,000 to be
paid at year end upon satisfactory completion of certain transition matters in connection with his departure from the Company. Mr. Storers incentive bonus was not based upon attainment of financial performance measures. Mr. Decherd
opted not to be eligible for a 2019 cash incentive bonus.
Mr. Moise was eligible to receive an annual cash incentive bonus based 50%
on financial performance objectives and 50% on individual objectives. In order to calculate achievement of financial performance under the ICP with respect to the 2019 incentive bonus for Mr. Moise, the Compensation Committee selected
Publishing Adjusted Operating Income, Publishing revenue, and total Dallas Morning News Sunday print subscriptions as the financial performance measures, and individual objectives as performance measures. For Mr. Moise, the weighting
given to the financial performance measures was 40% against Publishing Adjusted Operating Income, 40% against Publishing revenue, and 20% against total Dallas Morning News Sunday print subscriptions. For the Publishing Adjusted Operating
Income financial performance metric, the threshold, target and maximum performance ranges were 85%, 100%, and 115%, respectively, and the threshold, target and maximum bonus payout ranges were 10%, 100%, and 200% respectively. Threshold, target and
maximum performance and payout ranges for the Publishing revenue component was 95%, 100%, and 105%, respectively, for performance and 10%, 100%, and 200%, respectively, for payout. Threshold, target and maximum performance and payout ranges for
The Dallas Morning News Sunday print subscription component was 95%, 100% and 105%, respectively, for performance and 10%, 100% and 200%, respectively, for payout.
The foregoing financial performance metrics were applicable for the first half of 2019 for Mr. Moise. On July 18, 2019, in connection
with the announcement of Mr. Storers departure, digital marketing services operations were consolidated into a single management structure under Mr. Moise. The decision to consolidate the management reporting structure prompted the
Compensation Committee to re-evaluate the appropriate financial metrics for the second half of 2019. For the second half of 2019, the Compensation Committee selected A. H. Belo Adjusted Operating Income, A. H.
Belo revenue, and total Dallas Morning News Sunday print subscriptions as the financial performance measures. Individual objectives remained unchanged for the second half of 2019. The weighting given to these financial performance measures
was as follows: 40% against A. H. Belo Adjusted Operating Income, 40% against A. H. Belo revenue, and 20% against total Dallas Morning News Sunday print subscriptions. For the A. H. Belo Adjusted Operating Income financial performance metric,
the threshold, target and maximum performance ranges were 85%, 100%, and 115%, respectively, and the threshold, target and maximum bonus payout ranges were 10%, 100%, and 200%, respectively. The threshold, target, and maximum performance ranges for
the A. H. Belo revenue metric were 95%, 100%, and 105%, respectively, and threshold, target, and maximum payout ranges were 10%, 100%, and 200% for payout. Threshold, target, and maximum performance ranges for The Dallas Morning News Sunday
print subscription metric were 95%, 100%, and 105%, respectively, and 10%, 100%, and 200%, respectively, for payout.
The Company believes
that linking one-half of the bonus opportunity directly to financial performance, with an opportunity to earn a greater payout than target bonus amount if maximum financial performance is achieved, provides
participants with significant motivation to achieve the Companys financial objectives.
Individual objectives for Mr. Moise
comprised performance metrics based on a point system allocated to each objective which included threshold, target and maximum performance ranges for each objective of 50%, 100%, and 150%, respectively. The threshold, target and maximum payout
ranges for all objectives were 50%, 100%, and 115%, respectively, with payments pro-rated for performance achievement between the three points. The Company believes that, given the transitional state of the
newspaper industry and the unpredictability of core advertising revenues, which directly affect Adjusted Operating Income and revenue, it is important to link one-half of the bonus opportunity to individual
objectives that the NEOs can directly influence, and which have a positive qualitative and quantitative impact on the Company while increasing retention. In 2019, Mr. Storers individual objectives were paid at 100% based upon his
successful completion of transition matters in connection with his departure from the Company.
Financial Performance Goals and
Results for 2019. The tables below show the financial performance goals for 2019 for each of the corresponding performance levels (threshold, target and maximum) and our actual
finan-
28