Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

explain how got to answer A CEO at a Retail company has a base salary of $950,000 with a target bonus of 125% & LTI

image text in transcribed

explain how got to answer

A CEO at a Retail company has a base salary of $950,000 with a target bonus of 125% & LTI grant of $5,500,000. The role also provides for an annual perquisite allowance of $30,000 per year. The STI goals are: Metric 1 (60%) Metric 2 (40%) Net Income Cash Flow 50% $15,000 $24,000 100% $23,000 $34,000 200% $36,000 $46,000 LTI Mix is: Stock Options RSUS PSUS 25% 25% 50% 3-Year Cliff Vest 3-Year Cliff Vest 3-Year Cliff Vest The stock price $100 on the date of grant is used for allocation of RSUs and PSUs. The Black-Scholes value is $25 1) What is the TCC and TDC for this employee? 2) The company had Net Income of $29,000 and cash flow of $30,000. What was the target STI and actual payout

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Investing

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

14th Edition

0135175216, 978-0135175217

More Books

Students also viewed these Finance questions

Question

Explain the employee benefits that are required by law.

Answered: 1 week ago

Question

List the types of incentive plans.

Answered: 1 week ago