Apple 1994 Annual Report Download - page 69

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ADMINISTRATIVE PROCEDURES:
The purpose of administrative procedures is to provide for consistency of administration of the bonus plans.
New Hires, Promotions, and Transfers
An employee who is hired, promoted or transferred into a position in which he or she is eligible to become a participant may receive a prorated
award (see Eligibility Proration Criteria section) based on the months in the position, provided that at least three months have elapsed under the
plan provisions prior to the end of the plan year. Eligible employees who are hired or promoted into a position with less than three months in
the position may be considered for a recognition bonus under the Special Bonus Award Program.
Employees promoted from a position in which they were participating in the Special Incentive Award Plan will be eligible for a prorated
payment at the end of the plan year based on the number of months under that plan, as well as a prorated award based on the months eligible
under the Senior/Executive Plan. Employees promoted from a position in which they were not eligible, or were not participating in a Special
Incentive Award Plan, or any other plan, are eligible to be considered for a Special Recognition bonus for those months prior to eligibility in
the Senior/Executive Plan.
Employees promoted or transferred from one eligible position into another eligible position will require: a) a determination of whether a new
target award should be set; and b) prorated awards based on the number of months of service in each position during the plan year if the new
target is different. Employees who transfer from one eligible position in a division into another eligible position in a different division may
receive a prorated award (see Division Proration Criteria section).
Employees transferred into a position not eligible for participation may be eligible for a prorated payment at the end of the plan year based on
the number of months worked in the eligible position (see Eligibility Proration Criteria section).
The following example illustrates how an eligible employee who has been promoted would have their bonus calculated:
PROMOTION - BONUS TARGET EXAMPLE
Eligibility Proration Criteria
If eligibility for participation in the Plan occurs before the 15th of the month, participants will receive credit for the full month. If eligibility for
participation in the Plan occurs on or after the 15th of the month, participants will receive credit for 1/2 month.
66
Prorated New Target
Target Amount
10/15/93 Salary $165,000
Bonus Target% 30%
Bonus Target $ $49,500 $49,500 x 6 mos = $24,750
4/1/94 Promo Salary $170,000
Bonus Target % 43%
Bonus Target $'s $73,100 $73,100 x 6 mos = $36,550
ANNUAL TARGET $61,300