New pay plan is introduced
The incentive payout in APC's 1998 incentive plan is tied to just two companywide goals-operating income and fixed expense reduction. "Roger Truitt wants to focus on more income and less expense," says Compensation's Mike Vercillo. "And our new incentive plan is designed to do just that."
"We asked for feedback on the 1997 incentive
plan," adds Vercillo. "People favored a simpler program."
In 1998, bonus payments could reach 15 percent of an employee's base salary if APC significantly exceeds its income and fixed expense reduction goals. To receive any bonus, we must avoid a major safety incident and achieve at least $50 million of fixed expense reductions.
The bonus will be paid out once, instead of twice a year. The payout will be a percentage of base salary rather than a flat dollar amount. Employees will be informed about progress toward the bonus goals.