Maximum Bonus Compensation Clause Samples
The Maximum Bonus Compensation clause sets a cap on the total amount of bonus an employee can earn within a specified period, such as a fiscal year. This clause typically outlines the highest possible bonus payout, regardless of performance metrics or company results, and may apply to individual or group incentive plans. By establishing a clear upper limit, the clause helps employers manage compensation costs and provides employees with transparent expectations regarding their potential earnings.
Maximum Bonus Compensation. Notwithstanding anything set forth herein, while the Bankruptcy Cases are pending the maximum annual compensation with respect to 2007 under Section 2(a) shall not exceed $1,217,638 (the “Maximum Annual Bonus Compensation”). For avoidance of doubt, the Maximum Annual Bonus Compensation shall not include (i) the Annual Base Salary and (ii) any payment made during a relevant fiscal year in respect of performance measures related to prior years.