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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
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 payoutStep by Step Solution
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