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duckworth

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Issue:

Business

 

Written by:

Geoffrey R

 

Date added:

January 3, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1005

 

Was viewed:

6491 times

 

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Essay content:

The self- adjustment can be explained by describing the four mechanisms of the plan. First, the bonus target such as 37% is established. This means that a unit like phantom stock is assigned to each manager at a specific value and each manager would earn a desired level of bonus based on his/her individual performance...
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The second mechanism gives this system its self- adjusting property because the baseline EVA level is created where it would adjust the following year by half of the difference between the actual EVA gained and the baseline EVA for the previous year. This allows the targets to continue to remain within reaching distance...
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General issues of this essay:
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