Using the data in Tables 6.4 and 6.5 in your text, (Financial and Business Management for the Doctor of Nursing Practice, Second Edition )calculate the total year-end bonus amount for a nurse manager who earns $100,000 annually, has a 10% bonus target, meets the individual financial contributions, and completes his or her assigned tactics, but fails to meet some of the individual and unit operational goals, and works in a hospital that has met all of its strategic, operational, and financial goals, achieved 115% of the projected EBITDA, and utilizes the "all-or-nothing" approach to the incentive compensation criteria. Assume that the maximum aggregate bonus amount is set high enough for all to receive the entire individually calculated bonus amounts.

Hint

Maximum bonus potential =

Company results contribution maximum:

Unit results contribution maximum:

Individual results contribution maximum:

Total bonus payout:

TABLE 6.4 Employee Bonus Criteria Decision Matrix Results Level Strategic (1/3) Operational (1/3) Financial (1/3) Company (1/2) Outcomes Critical quality and EBlTDA operating targets Department/Unit (1/4) Tactics and outcomes Critical quality and EBlTDA operating targets Individual (1/4) Tacticsa Individual goalsa Individual contribution aWhen an employee does not bear any direct responsibility over revenue or expenses, strategic and operational results are weighted equally at 1/2. EBlTDA, earnings before interest, taxes, depreciation, and amortization. TABLE 6.5 Stretch EBITDA Targets With Corresponding Bonus Upsides Percent Percent Percent Percent Percent of Percent of Percent of Percent of of EBITDA of of Bonus EBITDA of Bonus EBITDA Achieved Bonus Earned EBITDA Achieved Bonus Earned Achieved Earned Achieved Earned 101 102 114 128 127 154 139 178 102 104 115 130 128 156 140 180 103 106 116 132 129 158 141 182 104 108 117 134 130 160 142 184 105 110 118 136 131 162 143 186 106 112 119 138 132 164 144 188 107 114 120 140 133 166 145 190 108 116 121 142 134 168 146 192 109 118 122 144 135 170 147 194 110 120 123 146 136 172 148 196 111 122 124 148 137 174 149 198 112 124 125 150 138 176 150 200 113 126 126 152 EBITDA, earnings before interest, taxes, depreciation, and amortization