Common use of Threshold Performance Clause in Contracts

Threshold Performance. The amount of formulaic Performance Bonus earned by the Executive shall be decreased by 5% of the Target Bonus for every percentage of performance that is less than the target performance goals for the year in question. For example, if the formulaic performance is 85% of target, the Executive’s formulaic payout is calculated at 37.5% of base salary (i.e., 150% of base salary for Target, less 5% x 150% x 15 = a net bonus total of 37.5% of base salary).

Threshold Performance. The amount of formulaic Performance Bonus earned by the Executive shall be decreased by 5% of the Target Bonus for every percentage of performance that is less than the target performance goals for the year in question. For example, if the formulaic performance is 85% of target, the Executive’s formulaic payout is calculated at 37.5% of base salary Annual Base Salary (i.e., 150% of base salary Annual Base Salary for Targettarget, less 5% x 150% x 15 = a net bonus Performance Bonus total of 37.5% of base salaryAnnual Base Salary).

Threshold Performance. The amount of formulaic Performance Bonus earned by the Executive shall be decreased by 5% of the Target Bonus for every percentage of performance that is less than the target performance goals for the year in question. For example, if the formulaic performance is 85% of target, the Executive’s formulaic payout is calculated at 37.528.75% of base salary (i.e., 150115% of base salary for Target, less 5% x 150115% x 15 = a net bonus total of 37.528.75% of base salary).