Relative Performance Factor definition
Relative Performance Factor shall be the performance factor achieved for the plan year through the Transaction Date determined by comparing the Harsco Infrastructure Performance Plan (“Performance Plan”) operating income with the actual operating income achieved as of the Transaction Date. If actual operating income achieved as of the Transaction Date results equal the Performance Plan results, the Relative Performance Factor is the payout level that would have been achieved for achieving the Performance Plan results under the EVA-based plan as of December 31 of the applicable calendar year. Any absolute under- or over-performance of operating income as of the Transaction Date shall be extrapolated until the end of the year and incorporated into the existing EVA-based AIP plan calculation. All other components of the EVA calculation remain the same as per the AIP, such as Capital and Overhead Allocations. Thus, the Relative Performance Factor would be the payout level that would have been achieved based on the Plan Capital and Allocations and revised Operating Income achieved under the EVA-based plan as of December 31 of the applicable calendar year. For the avoidance of doubt, the Performance Plan operating income shall refer to the applicable plan associated with each Participant. An example of the relevant calculations is set forth below: • Transaction Date: August 31, 2013 • Plan Operating Income YTD August: $2,000 • Actual Operating Income YTD August: $2,800 • Plan Operating Income Full Year: $3,000 • Extrapolated Operating Income for Full Year: ($2,800-$2,000)/8*12+$3,000=$4,200 • AIP Bonus Calculation based on Plan Capital and Allocations and revised Operating Income of $4,200.
Relative Performance Factor shall be determined based on the ranking of the TSR (as defined below) of the Company for the Performance Period as compared to the TSR of the other component companies included within, and ranked by, the Index (as defined below) for the Performance Period, subject to the terms of this Agreement: Maximum Company TSR must rank at a level equal to the 75th percentile of ranked component companies in the Index 1 Target Company TSR must rank at a level at least equal to the 50th percentile of ranked component companies in the Index 1/3 Threshold Company TSR must rank at a level at least equal to the 35th percentile of ranked component companies in the Index 1/9
Relative Performance Factor shall be determined based on the Company’s TSR (as defined below) for the Performance Period relative to the Index Return (as defined below) for the Performance Period, subject to the terms of this Agreement: Maximum Company TSR must exceed Index Return by at least 5.0% 1 Target Company TSR must exceed Index Return by at least 0.5% 1/3 Threshold Company TSR must trail Index Return by at most 3.0% 1/9
Examples of Relative Performance Factor in a sentence
The “Relative Earned Award” shall be equal to the product of (i) the number of restricted share units underlying the Performance Unit Award, (ii) 0.5, and (iii) the Relative Performance Factor.