Incentive Compensation Personnel at most levels of NuTone were given incentive compensation. The top-level managers were provided annual bonuses based on the performance of the entire corporation. If Scovill met its annual earnings per share {BPS} goal, bonuses of 50% of salary were provided. No extra awards were provided if actual EPS exceeded the target. If actual EPS was 10% or more under the target, no bonuses were provided. The bonuses were scaled linearly with actual EPS within these two extremes. Middle-level NuTone managers were primarily rewarded based on achievement of goals specic to their own functional areas, but they were also rewarded depending on the group's profit performance compared with plan on a basis very similar to that done at the corporate level. For example, regional sales managers could earn an annual bonus of up to 50% of salary. Eighty percent of this bonus could be earned by meeting a total regional sales quota and certain sales targets set for some of the major product categories. The other 20% of the bonus was provided if NuTone met its profit targets. Personnel in the direct sales force were paid a straight commission on sales volume, with no reimbursement of expenses. The commission rate was scaled down depending on the amotmt of discount off catalogue prices the customer received. For example, the commission rate was 50% higher if the sale was made at catalogue prices instead of at QQP pricing