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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% <I grant
explain how got to answer
A CEO at a Retail company has a base salary of $950,000 with a target bonus of 125% <I grant of $5,500,000. The role also provides for an annual perquisite allowance of $30,000 per year. The STI goals are: 100% Metric 1 (60%) Metric 2 (40% Net Income Cash Flow 50% $15.000 $24,000 $23.000 $34,000 200% $36.000 $46,000 LTI Mix is: Stock Options RSUS PSUS 2595 259 5096 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? 3) in 3 years, the stock price is $133.50. If the employee exercises all of the stock options, how much will he/she receive? 4) In 3 years, the stock price is $133.50. If the employee sells their RSUS, how much will he/she receiveStep by Step Solution
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