Apple 1995 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 1995 Apple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 62

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62

ADMINISTRATIVE PROCEDURES:
The purpose of administrative procedures is to provide for consistency of administration of the incentive plans. The following guidelines apply
only when previously stated plan requirements have been met.
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,
Employees promoted or transferred from one eligible position into another eligible position will require: a) a determination of whether a new
target award and new objectives 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 into another eligible position may receive a prorated
award (see Division Proration Criteria section). Employees transferred into a position not eligible for participation will result in 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:
Eligibility Proration Criteria
If eligibility for participation occurs before the 15th of the month, participants will receive credit for the full month. If eligibility for
participation occurs on or after the 15th of the month, participants will receive credit for 1/2 month.
Division Proration Criteria
If a plan participant transfers from one division to another, the respective division measurement will be prorated by the number of months the
plan participant was in each division according to the above Eligibility Proration Criteria.
Terminations
Plan participants who terminate their employment, and are not employed by Apple on the last day of the biannual payment period, are not
eligible to receive any award. If a plan participant terminates after the close of the biannual payment period, but prior to the actual distribution
of the bonus payout, such participant will be eligible to receive a bonus plan award according to the terms of "The Plan".
57
Pro-rated Target Amount
10/1/94 Salary $175,000
Bonus Target % 30%
Bonus Target $ $52,500 52,500 $26,250
@ 6 months =
4/01/95 New Salary
after promotion $183,750
New Bonus Target % 43%
New Bonus Target $ $79,013 $79,013 $39,506
@ 6 months =
TOTAL ANNUAL BONUS TARGET: $65,756