TSR Performance Share Number Sample Clauses
The "TSR Performance Share Number" clause defines how the number of performance shares awarded to a participant is determined based on the company's Total Shareholder Return (TSR) over a specified performance period. Typically, this clause outlines the formula or method for calculating the number of shares earned, which may depend on the company's TSR ranking relative to a peer group or pre-established benchmarks. For example, if the company's TSR meets or exceeds certain targets, the participant may receive a higher number of shares, while underperformance could result in fewer or no shares being awarded. The core function of this clause is to align executive or employee incentives with shareholder value creation by directly linking equity awards to the company's market performance.
TSR Performance Share Number. (i) Within 120 days after the end of the Performance Period, the Committee will (A) calculate the TSR for Best Buy and for each company included in the S&P 500 Index at the time of any calculation hereunder, (B) rank each such company by TSR (lowest to highest), and (C) determine the percentile rank of Best Buy’s TSR in such ranking by dividing Best Buy’s numerical position in such TSR ranking by the total number of companies included in the list, rounding to the nearest hundredth (“Relative TSR”). For example, if Best Buy were ranked 300 out of 500, its Relative TSR would be 60%.
(ii) Your TSR Performance Share Number will be equal to the percentage of the TSR Target that is listed in the column below with the heading “Number of Shares Earned” opposite the band in the column with the heading “Performance” in which Relative TSR falls. If Relative TSR is between Threshold TSR and Target TSR or between Target TSR and Maximum TSR, your TSR Performance Share Number will be equal to a percentage interpolated on a linear basis for performance between such amounts. For example, if Best Buy's Relative TSR is 60%, then your TSR Performance Share Number would be 125% of your TSR Target. Your TSR Performance Share Number will be rounded to the nearest whole number. Relative TSR less than 30% (“Threshold TSR”) 0 Relative TSR 30% or greater but less than 50% 50%-99% of TSR Target Relative TSR 50% (“Target TSR”) or greater but less than 70% 100%-149% of TSR Target Relative TSR Greater than 70% (“Maximum TSR”) 150% of TSR Target The number of performance shares earned will be interpolated on a linear basis for performance between Threshold and Target and between Target and Maximum.