bonus plan

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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 ?
Finews.asia has reported that the bank's annual general meeting on May 2 could see the firm being on the receiving end of criticism from shareholders for its bonus plans. US proxy vote firm, Glass Lewis, has called on shareholders to reject the compensation report published by the bank.
If an employer has been mistakenly taking a deduction in the earlier year (i.e., the year of services), the employer may be using an improper accounting method and (assuming it does not want to revise its bonus plans to eliminate the retained discretion) may have to request an accounting method change to correct the treatment and protect itself from exposure for prior-year treatment.
Irvine, CA, July 09, 2013 --(PR.com)-- Most organizations struggle with how to develop a bonus plan that “works,” according to Tom Miller, president of The VisionLink Advisory Group, a compensation consulting firm headquartered in Irvine, CA.
Approximately half of REITs (49%) have a formulaic bonus plan that utilizes a combination of objective and subjective bonus metrics in order to balance concrete performance goals with other goals that may be harder to quantify, such as balance sheet management, executive leadership and investor relations outreach initiatives.
The IRS indicates that any change in an employer's treatment of bonuses to conform with this new guidance is a change in method of accounting and must be handled in accordance with applicable procedures; however, the ruling provides employers with an opportunity to modify their bonus plans without removing the employment requirement to obtain a current deduction for accrued bonuses paid within 2 1/2 months of the tax year-end.
While most companies removed any such guaranteed provisions from their bonus plans, they may continue to appear in employment or severance agreements.
The bank's controversial bonus plans have already been revealed, announced at the time of the Project Merlin deal with Chancellor George Osborne.
Why do so many small businesses continue to favor bonus plans over alternative executive comp arrangements?
Even though other banks such as Bank Hapoalim (POLI.TA) and Bank Leumi (LUMI.TA) have introduced clawback options in their bonus plans, First International Bank has published a bonus plan that would not penalise executives when the performance of the bank drops.
In fact, traditional bonus plans can actually decrease productivity.