Common use of Pay for Performance Clause in Contracts

Pay for Performance. For employees in AMAPCEO classifications who are at the maximum of their salary range: 41.2.1 For employees who were at the salary maximum on March 31, pay for performance payments will be processed on March 31st each year based on performance for the previous fiscal year. 41.2.2 The pay for performance shall be a re-earnable lump sum payment and will not increase the employee’s base salary beyond the maximum of the salary range for any purpose. (a) The amounts of pay for performance payments available under article 41.3 shall be fixed at a maximum of three and a half percent (3.5%) for above meets expectation. Any employee who receives a meets expectations review will receive a pay for performance increase of 2.25% effective April 1. (b) The administration of the payments made under Article 41.3 is totally within the discretion of the Employer. Individual employees’ disputes over their merit ratings and pay for performance bonuses will not be arbitrable. (c) It is understood that 80% of employees eligible for pay for performance payment under Article 41.3 shall receive a “meets expectation” rating.