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<blockquote data-quote="FracusBrown" data-source="post: 775366" data-attributes="member: 29360"><p>There may be some degree of correlation, but it's not directly correlated. The pay out is subjective. The old formula was directly correlated to profit. </p><p> </p><p>I suspect if all the targets are met the factor will be 2.0. For each target not met the factor is reduced by an equal percentage with the minimum factor being 1. No targets = 1. All targets met = 2. half of the targets met = 1.5. </p><p> </p><p>The real question is do they establish the payout first, then base which targets were met upon how much they intend to spend or is it the other way around? Considering the MIP expense is planned in advance, it's likely the the amount is known and established in advance regardless of performance or targets met.</p></blockquote><p></p>
[QUOTE="FracusBrown, post: 775366, member: 29360"] There may be some degree of correlation, but it's not directly correlated. The pay out is subjective. The old formula was directly correlated to profit. I suspect if all the targets are met the factor will be 2.0. For each target not met the factor is reduced by an equal percentage with the minimum factor being 1. No targets = 1. All targets met = 2. half of the targets met = 1.5. The real question is do they establish the payout first, then base which targets were met upon how much they intend to spend or is it the other way around? Considering the MIP expense is planned in advance, it's likely the the amount is known and established in advance regardless of performance or targets met. [/QUOTE]
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