Before
The Plan places a portion of incentive compensation at risk, since participants must achieve certain performance thresholds to earn bonus incentive compensation under the Plan. In addition, the Plan increases bonus incentive awards when performance exceeds Plan objectives. Under the Plan, participants are eligible to earn cash bonus incentive compensation based upon the achievement of certain performance goals and objectives relating to the Company and each individual participant. The Committee establishes quarterly and annual performance goals and objectives for the Plan. Following the end of each performance period, the Committee determines the extent to which the performance goals and objectives were obtained. Based on this assessment, eligible participants in the Plan may earn a bonus incentive award in an amount equal to a percentage of such participant’s target bonus incentive compensation.
(131 words, many of which are superfluous)
Before, with commentary
The Plan places a portion of incentive compensation at risk, since participants must achieve certain performance thresholds to earn bonus incentive compensation under the Plan. In addition, the Plan increases bonus incentive awards when performance exceeds Plan objectives. [This should be the THIRD point: participants can earn a better bonus if we exceed our goals.] Under the Plan, participants are eligible to earn cash bonus incentive compensation based upon the achievement of certain performance goals and objectives relating to the Company and each individual participant. [This should be the SECOND point: participants can earn a bonus if we achieve our goals.] The Committee establishes quarterly and annual performance goals and objectives for the Plan. Following the end of each performance period, the Committee determines the extent to which the performance goals and objectives were obtained. [This should be the FIRST point: the Committee sets standards and decides whether the standards were met.] Based on this assessment, eligible participants in the Plan may earn a bonus incentive award in an amount equal to a percentage of such participant’s target bonus incentive compensation. [How helpful is it to give the reader an unknown percentage of an unknown target amount?]
After
Since Plan participants must achieve certain performance thresholds to earn bonus incentive compensation, a portion of their compensation is at risk. The Committee establishes and monitors quarterly and annual performance goals and objectives for the Plan. Participants can earn cash bonus incentive compensation based on whether, and by how much, individual and company-wide performance goals and objectives are achieved or surpassed.
(61 words)
