Under Too Much Pressure? Sales 'R Us Corp. is a publicly traded company that specializes in e-commerce and online auctions. Through inquiry with the director of compensation, the audit engagement manager learned that management's incentive compensation is based on performance related to achieving annual targets for revenue, which are set at the beginning of each year. For the current year, eligible employees will receive a bonus of 5 percent of their annual salary if annual revenues reach $5.25 billion. They will receive a bonus of 15 percent of their salary if annual revenues reach $5.5 billion, and 25 percent of their salary if annual revenues reach $5.75 billion The audit staff read and summarized the compensation committee's meeting minutes, noting that this year's annual executive incentive compensation plan uses performance- based restricted stock units. The audit engagement manager recalled that in prior years, share-based compensation was a fixed amount, not performance-based The audit engagement manager, with assistance from his audit staff, researched analyst reports.Revenue predictions were often reported by the analysts before the company released its results. The team noticed that the company's performance rarely missed the analysts' predictions, and that historically, when missed, there was a