bonus plan


Also found in: Financial.

bonus plan

A financial incentive which may be incorporated into the compensation arrangement that a managed care organisation has with a doctor, in which the physician’s pay is linked to the lowest possible utilisation of out-of-network or high-cost in-network providers and services.
References in periodicals archive ?
Under Section 162, we may also design a Leveraged Bonus Plan. With this strategy, the employer will provide a bonus, but will only have to provide an additional bonus to cover interest.
Further analysis of the compensation committee reports in the corporate proxy statements of these companies revealed that only 10 of the 184 companies didn't incorporate a cash bonus plan in their CEO compensation package.
Remember, the best thing that can happen to you and your employee is that you will have to pay out on the bonus plan when you meet the company's yearly goals.
The target-setting systems cited earlier for bonus plans are helpful here as well.
Remodelers, says Idaho contractor Jim Strite, owner of Strite Design + Remodel in Boise, often lack managerial skills, which doesn't bode well for the success of a bonus plan. "We tend to be crisis managers," he says.
(6) We expect that the likelihood of lower compensation for extreme performance in firms with qualified bonus plans combined with the mean reverting nature of financial performance with increase the incentive to smooth earnings when the bonus plan is qualified.
That is where the Executive (Section 162) Bonus Plan, also known as Executive Equity, comes into the picture.
I was disappointed, however, that he did not mention any alternatives other than his "bonus plan." It seems that Schlesinger doesn't really want to change the two-party system despite the fact that it is the reason more than 50 percent of Americans don't vote.
He believes in involving all employees in the company's success, and was instrumental in refining the employee bonus plan to be totally inclusive.
In a letter to stockholders, the board of directors said stockholders will also be asked to vote for a revision on the company's employee stock bonus plan, which will increase the maximum number of shares of common stock that can be given by the company as part of an employee's bonus.
We also found that internal auditors assigned a higher likelihood of fraud when (1) income was greater than expected, and (2) when an earnings-based bonus plan was used and debt covenants were restrictive.
Hence, to clarify this situation we test the validity of Holthausen's (1990) hypothesis in a different setting--choice of accounting performance measures used in their bonus plan. Similar to external reporting procedure choice, the firm may choose the performance measures in a bonus plan to align the interest of the manager with the shareholders (efficient contracting) or the choice may be a function of managerial opportunism.