PERFORMANCE SHARING Clause Samples
The PERFORMANCE SHARING clause establishes how the results or benefits of a party's performance under a contract are distributed between the involved parties. Typically, this clause outlines the specific metrics or achievements that trigger sharing, such as cost savings, increased revenues, or efficiency gains, and details the proportion or method by which these benefits are divided. Its core practical function is to incentivize parties to maximize performance by ensuring that both sides share in the positive outcomes, thereby aligning interests and promoting collaboration.
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PERFORMANCE SHARING. Performance sharing is intended to recognize that, through the Labor Management Partnership, employees and their unions have a greater opportunity to impact organizational performance, and employees, therefore, should have a greater opportunity to share in performance gains. The parties support the Labor Management Partnership Performance Sharing Program (LMP PSP) as a way to continue the transformation of the organization, through Partnership, to a high- performing organization and to share the success of the organization with employees covered by this Agreement. The Strategy Group will be accountable for the LMP PSP. The Strategy Group may, but is not required to, establish national factors each year that will be included in all regional and local programs, together with regional and local factors. The PSP goals will be aligned with national, regional, facility and unit goals. The PSP goals will be based on the principle of “line of sight” as much as possible. As in the 2008 Reopener Settlement, the regions may continue to pilot PSP demonstration projects during the life of this agreement with the emphasis on achieving simplicity, ease of administration and alignment with organizational and Partnership goals. Relevant sections of the 2008 Reopener Settlement are found in Exhibit 2.A.2. The Strategy Group appointed a PSP Design Team charged with reviewing the 2005 Performance- Based Pay BTG recommendations and making improvements to the LMP PSP. The PSP National Design Team produced and submitted recommendations to the LMP Strategy Group in April 2010. The document informed the 2010 national bargaining Common Issues Committee (CIC) PSP Subgroup and resulted in new language. The PSP National Design Team recommendations are retained and available through the national office of the LMP. This will provide employees a “line of sight” between their performance and the success of ▇▇▇▇▇▇ Permanente through development of local programs under the LMP PSP. Performance sharing is over and above base wage rates and will be based on mutually agreed-to performance factors and targets. The LMP PSP is self-funded through operating margin. Performance targets will be set by region or national function and may be based on quality, service, financial performance or other mutually acceptable factors. If targets are met, performance sharing opportunities will be as shown below for each year the Agreement is in effect. All amounts will be based on total payroll for employees c...
PERFORMANCE SHARING. Performance sharing is intended to recognize that, through the Labor Management Partnership, employees and their unions have a greater opportunity to impact organizational performance, and employees, therefore, should have a greater opportunity to share in
PERFORMANCE SHARING. As specified in the National Agreement, a Performance Sharing Plan will be developed and instituted with potential payouts in 2007, 2008, 2009, 2010, and 2011. The parties have agreed that calculations for payouts will be based upon actual compensated hours during the previous year.
PERFORMANCE SHARING. On such date as any employee of the Company first receives payment under the Performance Sharing Plan for the February 1 through July 31, 2001 Performance Period, Company will pay to you the amount equal to your performance sharing payment.
PERFORMANCE SHARING. Performance Sharing is intended to recognize that, through the Labor Management Partnership, employees and their unions have a greater opportunity to impact organizational performance, and employees, therefore, should have a greater opportunity to share in performance gains. The parties support the Labor Management Partnership Performance Sharing Program (LMP PSP) as a way to continue the transformation of the organization, through Partnership, to a high-performing organization and to share the success of the organization with employees covered by this Agreement. The Strategy Group will be accountable for the LMP PSP. The Strategy Group may, but is not required to, establish national factors each year that will be included in all regional and local programs, together with regional and local factors. The PSP goals will be aligned with national, regional, facility and unit goals. The PSP goals will be based on the principle of “Line of Sight” as much as possible. As in the 2008 Reopener Settlement, the regions may continue to pilot PSP demonstration projects during the life of this agreement with the emphasis on achieving simplicity, ease of administration and alignment with organizational and Partnership goals. Relevant sections of the 2008 Reopener Settlement are found in Exhibit
PERFORMANCE SHARING. Performance Sharing is intended to recognize that, through the Labor Management Partnership, employees and their Unions have a greater opportunity to impact organizational performance and employees should, therefore, have a greater opportunity to share in any performance gains. Performance Sharing is over and above base wage rates and will be based on mutually-agreed-to performance factors and targets. Performance targets will be set by Region and may be based on quality, service, financial performance or other mutually acceptable factors. If targets are met, Performance Sharing opportunities will be as shown below. All amounts will be based on total payroll for employees covered by the Partnership in each Region: Year 3-1% payout at target to be paid out in First Quarter 2003, based on 2002 performance Year 4-2% payout at target to be paid out in First Quarter 2004, based on 2003 performance Year 5-3% payout at target to be paid out in First Quarter 2005, based on 2004 performance The National Performance Sharing Program is dependent and based on the implementation of Partnership structures and processes that empower employees to have an impact on the program’s targeted factors. To afford employees a reasonable opportunity to earn the above Years 3, 4 or 5 payouts, Partnership structures and processes must reach critical thresholds to support the program. Further, the factors used must be measurable against mutually agreed upon predetermined targets. The resources for the National Performance Sharing Program will be achieved through enhanced organizational performance. As the Labor Management Partnership continues to grow and evolve, an important element is to ensure that employees share in the success of the organization as enhanced performance is achieved through the Partnership. Specifically, all Partnership employees will participate in a National Performance Sharing Program, which provides an annual cash bonus based upon Regional performance in the areas of quality, service, financial health and other mutually acceptable factors. To that end, during the first quarter of 2001, the Strategy Group shall appoint a joint Labor Management Partnership Work Group to develop a National Performance Sharing Program. The jointly designed Program will reward partnership employees for reaching mutually agreed upon Regional targets. In developing the new National Performance Sharing Program, the design Work Group will adhere to the following agreements reached duri...