Performance Formula Sample Clauses
A Performance Formula clause defines the method for calculating performance-based outcomes, such as bonuses, penalties, or adjustments, based on measurable criteria. Typically, this clause specifies the variables, metrics, and mathematical operations used to determine whether performance targets have been met, and how resulting payments or consequences are computed. By providing a clear and objective calculation method, the clause ensures transparency and reduces disputes over performance assessments.
Performance Formula. Fifty-percent (50%) of the Target PSUs for each Performance Period shall be eligible to vest based on achievement of Operating Income Performance Targets and the other fifty percent (50%) shall be eligible to vest based on achievement of Operating Margin Performance Targets. The number of PSUs eligible for vesting for any Performance Period will equal the product of (a) the percentage determined under this paragraph 2 (the “Applicable Percentage”) multiplied by (b) the number of Target PSUs awarded to the Grantee for the Performance Period. To determine the Applicable Percentage for OI PSUs, the Committee will compare (1) the Company’s certified Operating Income for the Performance Period to the Operating Income Performance Target for the Performance Period. To determine the Applicable Percentage for OM PSUs, the Committee will compare the Company’s certified Operating Margin for the Performance Period to the Operating Margin Performance Target for the Performance Period. The table below specifies the Applicable Percentage for each Performance Period if the certified Operating Income and certified Operating Margin equals the percentage of the Performance Target stated in the chart at the applicable Threshold, Target or Maximum payout levels. No Payout Less than 75% 0% Threshold 75% 33.3% Target 100% 100% Maximum 125% 200% (Maximum payout) Accordingly, the table below specifies the Applicable Percentage for each Performance Period if the certified Operating Income or certified Operating Margin equals the percentage of the Performance Targets stated in the chart at the applicable Threshold, Target or Maximum payout levels. Percentage of OI PSUs earned for the performance period 0% 33.33% 100% 200% — — — — Percentage of OM PSUs earned for the performance period — — — — 0% 33.33% 100% 200% If the certified Operating Income or Operating Margin achieved is between the Threshold and Target payout levels for the relevant Performance Target, then the Applicable Percentage will be prorated between the specified Applicable Percentage for the Threshold payout level and the specified Applicable Percentage for the Target payout level. If the certified Operating Income or Operating Margin achieved is between the Target and Maximum payout levels for the relevant Performance Target, then the Applicable Percentage will be prorated between the specified Applicable Percentage for the Target payout level and the specified Applicable Percentage for the Maximum payout level. If ...
Performance Formula. Fifty-percent (50%) of the Target PSUs for each Performance Period shall be eligible to vest based on achievement of Operating Income Performance Targets and the other fifty percent (50%) shall be eligible to vest based on achievement of Operating Margin Performance Targets. The number of PSUs eligible for vesting for any Performance Period will equal the product of (a) the percentage determined under this paragraph 2 (the “Applicable Percentage”) multiplied by (b) the number of Target PSUs awarded to the Grantee for the Performance Period. To determine the Applicable Percentage for OI PSUs, the Committee will compare (1) the Company’s certified Operating Income for the Performance Period to the Operating Income Performance Target for the Performance Period. To determine the Applicable Percentage for OM PSUs, the Committee will compare the Company’s certified Operating Margin for the Performance Period to the Operating Margin Performance Target for the Performance Period. The table below specifies the Applicable Percentage for each Performance Period if the certified Operating Income and certified Operating Margin equals the percentage of the Performance Target stated in the chart at the applicable Threshold, Target or Maximum payout levels. No Payout Less than 75% 0% Threshold 75% 33.3% Target 100% 100% Intermediate 120% 150% Maximum 140% 200% (Maximum payout) Accordingly, the table below specifies the Applicable Percentage for each Performance Period if the certified Operating Income or certified Operating Margin equals the percentage of the Performance Targets stated in the chart at the applicable Threshold, Target or Maximum payout levels.
Performance Formula. MICOA shall compensate MSMS for implementing the Plan in accordance with Exhibit B, which is attached and incorporated. The guaranteed base payment of Exhibit B shall be fixed at $325,000 per year for the first term of this Agreement. Performance incentives due under Exhibit B and the formula to determine them will be revised annually by amending Exhibit B.