美国研究生课程-薪酬管理-Incentive Pay.ppt

Session 12 Incentive Pay Chapter 4 Learning Objectives Incentive plan observations Administrative Plan Terms Short-Term Incentive Plans (STI) Long-Term Incentive Plans (LTI) Are incentive plans the same for all positions in a business? Are incentive plans the same for all businesses? What might be appropriate for a new business start-up? Does the business market impact the incentive plan design?, Example: Pharmaceutical vs. Insurance? Incentive Plan Observations Base Salary Beginning Share Price Beneficiary Disability or Death Ending Share Price Participant Performance Period Retirement Transfers, Promotions, Demotions Short Term Disability, Family Medical Leave Military Leave Plan Terms Impacting Incentive Pay Plans For Reference Only Target Award Opportunity Termination Eligibility Stock Performance Measures Distribution Elections Short Term Incentive (STI) Funding Sales Short-Term Incentive (STI) is based on achieving critical business and personal targets. Budget for the plan becomes “triggered” when the business financial threshold of Integrated Earnings Before Revenue and Taxes (EBIT) is achieved. Budget amount is influenced by Regional measures, which can influence the starting target % up or down. District and individual performance measures are combined for determining a final STI payment. Sales Plan Example STI Process STI BUDGET IS FUNDED Eligible employee salaries x 20% target Funded if 80% EBIT achieved Influenced further by National and Regional KPIs Minimum budget = 0; maximum budget = 150% Sales Plan Example NATIONAL REGIONAL FACTORS APPLIED Factors influence the 20% starting target percentage up (as much as 150% to reach a 30% target, or as low as 0%). Factors include: Integrated EBIT (US) Gross Sales (Reg’l.) Gross Invoiced Sales (Reg’l.) Forecast Accuracy (Reg’l.) Regional Operating Expenses (Reg’l.) Safety (RTP / Field) DISTRICT INDIVIDUAL FACTORS APPLIED District Gross Sales and Individual Perfo