Dividend Performance Bonus Clause Samples
A Dividend Performance Bonus clause establishes a mechanism for awarding additional compensation to shareholders or employees based on the achievement of certain dividend-related performance targets. Typically, this clause specifies the criteria under which bonuses are paid, such as when dividends exceed a predetermined threshold or when company profits allow for higher-than-expected distributions. By linking bonuses to dividend performance, the clause incentivizes stakeholders to focus on company profitability and shareholder returns, aligning interests and rewarding strong financial outcomes.
Dividend Performance Bonus. If at the end of each fiscal year in the table below during which the Executive is employed by the Company, the Company’s per share recurring dividend (dividends excluding amounts from (2), (3), (4), and (5) in 2 above) for such year is equal to or above the amount provided in the table below, then the Executive will be entitled to the Dividend Bonus provided in the table below, which bonus amount may be increased by the Company Board based on the amount by which the per share recurring dividend exceeds the amount in the table. In no event shall the Executive receive any Dividend Bonus if the per share recurring dividend does not meet or exceed the amount in the table below. “
Dividend Performance Bonus. If at the end of 2016, provided the Executive is employed by the Company at such time, the Company’s per share recurring dividend for 2016 was at least 5% higher than the per share recurring dividend for 2015, then the Executive will be entitled to the Dividend Bonus of $150,000. The Dividend Bonus shall be reviewed annually and shall be subject to adjustment according to the policies and practices adopted by the Company from time to time. Each year the Board shall set a Dividend Bonus based on achieving a percentage increase in the recurring dividend as set by the Board of Directors by March 15th of that year. In no event shall the Executive receive any Dividend Bonus if the per share recurring dividend does not meet or exceed the amount set by the Board of Directors for that year. “Recurring dividend” shall mean any dividend declared and paid by the Company that is equal to up to 85% of the Company’s per share FFO for such year, but excluding (1) any gains derived from the sale of previously written-down assets, (2) any losses derived from the sale of previously written-down assets, (3) losses from the sale of investment securities, and (4) gains from the sale of investment securities.
Dividend Performance Bonus. The Dividend Bonus target for 2018 performance shall be Two Hundred Fifty Thousand ($250,000) and shall be reviewed