Page 230 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

216 The Complete Guide to Executive Compensation

Performance Percent

Outstanding 1.5
Distinguished 1.0

Superior 0.5
Very good No adjustment

Good 0.5
Acceptable 1.0

Unacceptable 1.5
Table 5-32. Adjusting only for unit performance

Adjustment per 1% Sales Income Maximum
Above target 1% 1% 25%
Below target 5% 5% 25%

Table 5-33. Adjusting for unit sales and income performance

Adjustment per 1% % Target Adjustment Maximum
Sales 140 25% (Maximum exceeded)

Income 130 25% (Maximum exceeded)
Total 50% 6% (1.50) 9%

Table 5-34. Adjustment for sales of 140 percent and income of 130 percent of target

Adjustment per 1% % Target Adjustment Maximum
Sales 110 8% (Limited by income 8%
increase)
Income 108 8%

Total 16% 6% (1.16) 7.0%
Table 5-35. Adjustment for sales of 110 percent and income of 108 percent of target

decrease for each is 25 percent. This is illustrated in Table 5-34 (maximum increase) and
Table 5-37 (maximum decrease). Table 5-35 illustrates that sales-increase adjustments cannot
exceed income increases. In Table 5-36, we see a slight adjustment both above income target
and below sales target.