New Management Bonus Plan If an entity's actual economic profits were exactly equal to its objective, the manager would earn a 50% bonus Bonus increases linearly at a rate of 5% for each $100,000 above the objective Bonus is reduced linearly at a rate of 5% for each $100,000 below the objective Maximum bonus is 150% of salary, minimum is zero Is this incentive structure too generous for IE in a time when the company is performing poorly as a whole