Prorated Annual Performance Bonus Sample Clauses
A Prorated Annual Performance Bonus clause defines how an employee’s annual performance bonus is calculated and paid if their employment does not cover the full bonus period. Typically, this clause ensures that employees who join or leave partway through the year receive a bonus amount proportional to the time they were employed, based on their actual period of service and performance metrics. This approach ensures fairness by aligning bonus payments with the employee’s actual contribution during the year, preventing disputes over entitlement and clarifying expectations for both parties.
Prorated Annual Performance Bonus. A cash payment equal to the product of (i) the dollar amount of Executive’s annual performance bonus for the year in which Executive’s death occurs (with performance deemed at target), and (ii) a fraction, the numerator of which is the number of days during the annual performance period for such bonus through and including the date of Executive’s death, and the denominator of which is 365 (“Prorated Bonus”). This amount will be paid in a lump sum no later than the end of the calendar year following the calendar year in which Executive dies; and
Prorated Annual Performance Bonus. His Prorated Bonus on the first regularly scheduled payroll date that is at least 60 days following Executive’s Disability Termination Date;