Practices
Incentive Plan Review
We take the following steps in reviewing incentive plans:
- Data Collection -- Collecting and reviewing pertinent information, including any new or revised description of the annual incentive plan, strategic planning materials, documentation of current goals, performance reports regularly reviewed by management and the board and any special reports summarizing achievements or evaluating performance.
- Analysis -- Working with the committee and with management to modify the current annual incentive performance measures and plan goals as appropriate to ensure they are effective and supportive of the organization’s operating and strategic goals.
- Recommendations -- Preparing a memorandum presenting our recommendations for modifying the plan, including recommendations for funding triggers, opportunity levels, performance categories, measures and weights, threshold, target and maximum goals for each measure and general guidelines for administering the plan and making decisions about it from year to year.
