Synergy-Based Incentive Plan
An overview of our new incentive structure designed to reward collaborative success.
Who is Eligible?
Executives, department heads, and all employees involved in key integration workstreams are eligible to participate.
Prorated Targets
The synergy plan target is prorated. For example, a payout at 6 months is 37.5% of base salary, while at 18 months it's 112.5%.
Discretionary Awards
Department heads can allocate discretionary pools to employees who facilitate the achievement of synergy goals.
Target Award Comparison
Comparing the new Synergy Based Plan with the Current Annual Plan.
Synergy Based Plan
(% of Base Salary)
This plan is designed to provide a significant level of focus on achieving synergy-based goals.
Current Annual Plan
- Company Performance 60%
- Individual Performance 20%
- Teamwork Skills 20%
Incentive Plan Funding
How the incentive plan is funded and distributed.
Funding Threshold
Based on Public Goals
Synergies must reach a certain threshold before the plan will fund. For example, if synergy guidance of $100 million was communicated, no incentives are available until at least $100 million in synergies are achieved.
Discretionary Pools
Allocated to Teams
Pools of discretionary funds are allocated to each management team. For example, if the plan's funded value is $15 million and management targets are $12 million, then $3 million is allocated to discretionary pools for high-impact employees.
Advantages of the Plan
Key benefits of adopting the synergy-based incentive model.
Provides a significant level of focus on achieving synergy-based goals.
The approach is straightforward and not difficult to implement.
Funding levels and target award opportunities can be quickly determined.
Holds management directly accountable for synergy results.
Eliminates difficulty associated with different time horizons of other plans.
Provides the ability to distribute awards to employees with significant impact.
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