We have an MLO comp plan for our private bankers that has two parts: The first is formula based part that does not include any mortgage loan-related products; this portion is based on their deposit growth, swaps, up front syndication arrangement fees, foreign exchange forward contract profit, CRE placement fees, etc. The second is a discretionary part that is based on their general production (no specific mortgage loan terms), loan growth, etc.

My question is whether the 10% limit is on the total incentive (formula driven + discretionary) or just the discretionary portion?

Maybe a bit late to do you any good but the 10% limit is calculated using the loan officers total compensation, whatever that may include, after removing any bonus based upon profits.

That said, what you described doesn't include any bonus based upon mortgage loan profits so I don't think the 10% comes into play unless your compensation plan actually has 3 parts.