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1. Parties: Identifies the employer and employee to whom the bonus evaluation applies
2. Background: Sets out the context of the bonus evaluation, including its purpose and relationship to employment agreement
3. Definitions: Defines key terms used throughout the document, including types of bonuses, performance metrics, and evaluation periods
4. Bonus Structure: Outlines the basic framework of the bonus program, including types of bonuses available
5. Eligibility Criteria: Specifies the conditions that must be met to qualify for bonus consideration
6. Performance Metrics: Details the specific metrics and KPIs used to evaluate performance for bonus purposes
7. Evaluation Period: Defines the timeframe over which performance will be measured
8. Calculation Method: Explains how the bonus amount will be calculated based on performance metrics
9. Payment Terms: Specifies when and how bonus payments will be made
10. Clawback Provisions: Outlines circumstances under which the company may reclaim paid bonuses
11. Tax Treatment: Explains the tax implications and withholding requirements for bonus payments
12. Amendment Process: Describes how and when the bonus evaluation criteria may be modified
1. Pro-rata Calculations: Used when there's a need to specify how bonuses are calculated for partial year service or changes in employment status
2. Team Performance Components: Include when bonus includes team-based metrics in addition to individual performance
3. Discretionary Adjustments: Details circumstances where management can make discretionary adjustments to bonus calculations
4. International Assignments: Include for employees who work across multiple jurisdictions
5. Deferred Payment Provisions: Used when portions of bonuses may be deferred or paid in installments
6. Special Project Bonuses: Include when specific project-based bonuses may be awarded
7. Leave of Absence Impact: Specifies how various types of leave affect bonus calculations
1. Schedule A - Performance Metrics Definition: Detailed definitions and calculations for each performance metric
2. Schedule B - Bonus Calculation Examples: Sample calculations showing how bonuses are determined in various scenarios
3. Schedule C - Target Setting Methodology: Explanation of how performance targets are set and adjusted
4. Schedule D - Evaluation Timeline: Detailed timeline of the evaluation process including key dates
5. Appendix 1 - Performance Rating Scale: Detailed description of performance rating categories and criteria
6. Appendix 2 - Industry Benchmarks: Reference data for industry performance standards used in evaluation
Base Salary
Bonus
Bonus Period
Board
Cause
Company
Compensation Committee
Corporate Performance Metrics
Discretionary Bonus
Effective Date
Eligible Employee
Employment Agreement
Evaluation Criteria
Evaluation Period
Financial Year
Good Standing
Individual Performance Metrics
Key Performance Indicators (KPIs)
Management
Notice Period
Performance Rating
Performance Review
Performance Targets
Plan
Plan Administrator
Pro-rata Calculation
Qualifying Period
Review Committee
Special Project Bonus
Target Bonus
Team Performance Metrics
Termination Date
Threshold Performance
Variable Pay
Scope
Eligibility
Performance Metrics
Evaluation Process
Calculation Method
Payment Terms
Confidentiality
Non-Disparagement
Data Protection
Clawback
Termination Impact
Leave of Absence
Pro-rata Entitlements
Tax Treatment
Compliance
Discretionary Rights
Amendment
Dispute Resolution
Governing Law
Severability
Entire Agreement
Notice Requirements
Assignment
Force Majeure
Record Keeping
Review and Appeal
Non-Solicitation
Waiver
Survival
Financial Services
Technology
Manufacturing
Professional Services
Retail
Healthcare
Energy
Mining
Telecommunications
Construction
Real Estate
Consumer Goods
Transportation and Logistics
Education
Consulting
Human Resources
Finance
Legal
Compensation and Benefits
Performance Management
Executive Leadership
Operations
Sales
Marketing
Research and Development
Information Technology
Customer Service
Business Development
Product Development
Quality Assurance
Chief Executive Officer
Chief Financial Officer
Human Resources Director
Compensation Manager
Performance Management Specialist
Department Managers
Sales Representatives
Project Managers
Senior Engineers
Research Scientists
Account Executives
Business Development Managers
Operations Directors
Technical Leads
Financial Analysts
Legal Counsel
Marketing Managers
Product Managers
Software Developers
Customer Service Representatives
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