Maximum Performance Share Units Earned Sample Clauses
The "Maximum Performance Share Units Earned" clause defines the upper limit on the number of performance share units an individual can receive under a performance-based equity compensation plan. Typically, this clause specifies a cap based on the achievement of certain performance metrics, regardless of how much those metrics are exceeded. For example, even if a company dramatically surpasses its financial targets, the recipient cannot earn more than the stated maximum number of units. This clause serves to control the company's potential equity dilution and ensures predictability in compensation expenses.
Maximum Performance Share Units Earned. Up to twenty-five percent (25%) of the Maximum Performance Share Units may be earned in respect of the first Measuring Year in the Performance Period; up to fifty percent (50%) of the Maximum Performance Share Units may be earned in respect of the second Measuring Year in the Performance Period (less amount earned in the first Measuring Year); and up to one hundred percent (100%) of the Maximum Performance Share Units may be earned in respect of the third Measuring Year in the Performance Period (less amounts earned in the first and second Measuring Years).