Incentive Scheme Clause Samples
An Incentive Scheme clause establishes a framework for rewarding parties, typically employees or contractors, based on the achievement of specific performance targets or milestones. This clause outlines the criteria for earning incentives, such as sales goals, project completion, or quality benchmarks, and details the form and timing of rewards, which may include bonuses, commissions, or other benefits. Its core practical function is to motivate desired behaviors and outcomes by aligning individual or team performance with organizational objectives, thereby enhancing productivity and goal attainment.
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Incentive Scheme. (1) For the period of this agreement an incentive scheme will be implemented which will require targets to be achieved in the areas of spoilage in the press room and customer credits in the pre- press area.
(2) The target figure is in accordance with the budgeted figure for spoilage in each financial year. For the year 2006 – 2007 the target is 9%.
(3) Future year’s targets will be advised prior to July each year.
(4) Any monies saved in these incentive initiatives will be divided equally between the company and production employees.
(5) Monies so gained from the incentive scheme will be paid at quarterly intervals in the form of a one-off bonus.
(6) Casual employees who are employed for at least 75% of the hours in each three month period will be a part of the incentive scheme.
(7) Measurements of targets/criteria will commence from 1 July 2006.
Incentive Scheme. 6.2.1.1 The employee will be eligible to participate in the Incentive Scheme for Top Management as approved by the Board from time to time. For the 2005/06 financial year, the basis for the Incentive Scheme will be the Team Award and the Individual Award as approved by the Board. (The Board of Directors is currently reviewing the Team Award. Once a decision is made on the Team Award it will be communicated to you.)
6.2.1.2 The Team Award constitutes 80% and the Individual Award 20% of the overall award. Achievement of 80% or less of the Team Award or Individual Award targets, will result in an overall award of 0%. If the Team Award is achieved but the Individual Award is 80% or less, the overall award is 0% and vice versa.
6.2.1.3 The employee will qualify for the following pro-rata bonus, calculated over the period 1 September 2005 to 31 March 2006, if 100% actual performance is achieved: Guaranteed package R3,698,788 x 70% x 100% = R2,587,752 Pro-rata bonus = (R2,578,752 ÷ 12 x 7) = R1,509,522
6.2.1.4 A bonus pool has been created which is equal to the total of each member of top management’s on target bonus where 100% of EBIT is achieved. The bonus pool is geared to increase by 3% for every 1% addition EBIT and decrease by 10% for every 1% below EBIT. The bonus pool goes to zero if EBIT is 90% or less. The Bonus Pool is capped at 1% of actual EBIT.
6.2.1.5 The Team Award is the same for all members of Top Management, e.g. actual achievement will be the same for all. On the other hand, the Individual Award is different for all and will depend on the performance of each individual. For every 1% actual performance above 100%, an additional 1% is added, e.g. if actual performance is 105%, the Individual Award is calculated at 110%. Similarly, for every 1% below 100%, the percentage bonus will decrease by a further 1%, e.g. if actual performance is 95%, the Individual Award is calculated at 90%. Where one or more individuals do not qualify for an Individual Award (performance below 80%), their portion of the bonus pool is divided between the other members of top management.
Incentive Scheme. The parties agree to work to continuously improve the following Key Performance Indicators: • Labour Efficiency • Production Effectiveness • Waste Performance on each of the Key Performance Indicators will be reported monthly. A monthly cash bonus payment will be paid to employees depending on the level of performance achieved for each KPI and the value of that improvement (see Appendix 2). Production standards will be reviewed twice each financial year to account for changes in work practices but new capital investment will be reflected in the first month after being fully operational. Baseline values/targets are to be reviewed between the parties every 6 months in order to allow for progressive achievement.
Incentive Scheme. There is not any share incentive scheme, share option scheme or profit sharing, bonus, commission or other such incentive scheme for all or any of the employees.
Incentive Scheme. 16.1 A companywide Incentive Scheme has been introduced focusing on the customer and business performance of the Company and the Plant.
16.2 The measures, objectives and targets set in this scheme will be as agreed during Annual Development Interviews and this process will run for the period of the Agreement. The incentive will be a maximum 10% of annual salary for the achievement of all the yearly objectives in any one year.
Incentive Scheme. Permanent employees have the opportunity of receiving incentive payments subject to the achievement of the targets contained in Appendix C.
Incentive Scheme. Sony Pictures Networks India Private Limited, having its registered office at 4th Floor, Interface Building ▇▇. ▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇ - ▇▇▇▇▇▇ (“Broadcaster”), through its authorized agent, Sony Pictures Networks Distribution India Private Limited (formerly known as MSM Media Distribution Private Limited), a company incorporated under the laws of India having its office at 4th Floor, Interface Building ▇▇. ▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇ - ▇▇▇▇▇▇ (“SPN Distribution”), is offering certain incentive schemes for the digital addressable distribution platform operators, subject to the terms and conditions specified hereunder (“Scheme”).
Incentive Scheme. At the discretion of the employer, an incentive scheme may be introduced during the life of the project where mutually beneficial outcomes to the employer and employees can be achieved.
Incentive Scheme. Employees will be eligible to participate in the employer’s incentive scheme for portable service technicians. The employer may begin, change or end the incentive scheme at any time following consultation.
Incentive Scheme. 7.3.1 The Bidder acknowledges that, upon closing of the First Acceptance Period with confirmation by the Bidder that it accepts the Securities tendered in the First Acceptance Period, the Target intends to award a one-off payment of an incentive bonus with a total cost for the Target (including any taxes and/or employer and employee social security contributions) of 1% of the Transaction Value (the “Incentive Bonus”) to up to six key employees of the Target listed on, and in accordance with the terms set out in, Schedule 5 (the “Incentive Scheme”) to recognize the significant contribution of such key employees to the Target’s success.
7.3.2 The Board of Directors intends to hold a board meeting that will ultimately confirm the beneficiaries among the abovementioned key employees of, and approve the amount payable to each such beneficiaries out of the applicable cap on, the Incentive Scheme, immediately after the closing of the First Acceptance Period, once the Bidder has announced whether it will accept the Securities tendered in the First Acceptance Period and prior to the Completion Date. The Target will immediately inform the Bidder of the decisions taken in respect of the Incentive Scheme. The actual payment of the Incentive Bonus by the Target will occur as soon as possible thereafter, and in any event prior to the Completion Date.
7.3.3 The Bidder acknowledges the intention of the Board of Directors to award such Incentive Bonus to the abovementioned key employees and confirms that the intended Incentive Bonus has no impact on the launch of the Bid or Completion of the Bid and is not perceived by the Bidder as a defensive measure nor a material change in the composition of the assets and liabilities of the Target.