26 Mar 2010

When is a bonus not a bonus - Intertek

A deferred share bonus plan provides for an annual award of upto 100% of base determined upon annual performance.  There are no further performance criteria on release other than continued employment.  This is in addition to the annual cash bonus (130% for the CEO). The deferred bonus share amounts are not disclosed as annual bonus.  There is a matching plan where the deferred bonus shares can then be matched upto two times.  Another way of looking at the arrangement is a RSS with award of upto 300% with 1/3rd not subject to performance and 2/3rd subject to TSR performance.