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€10,000 bonus
paid to Simon
€10k
Pot 1
€5k
In October, Simon receives a 10% payment from his Pot 1
10% of Pot 1
Pot 2
€4.2k
€8,400 bonus
€8.4k
paid to Simon
Pot 1
€4.5k
In October Simon receives 2 payments from his pots
Pot 2
€3.78K
€4.2k
€1k Pot 1
€420 Pot 2 €1.42k
paid to Simon
Pot 1
€4.5k
€3.5k
Year 3 Simon earns a bonus of 22% and his salary has increased to €43k
Pot 2
€3.78k
€9.46k bonus €9.46k
paid to Simon
Pot 1 Pot 3
€3.5k €4.73k
October Simon receives 3 payments from his LTIP Pots
Pot 2
€2.94k
€3.78k
€1.5k Pot 1
€840 Pot 2 €2.81k
€473 Pot 3
paid to Simon Pot 1 Pot 3
€3.5k
€2k €4.73k
€4.26k
During Year 4 Simon has a good year and earns his full bonus of 20%. His current salary is
€45k.
Pot 2
€2.94k Pot 4
€4.5k
€9k bonus
paid to Simon in
€9k
March
Pot 1 Pot 3
€2k 4.26k
October Simon receives payments from his pots
Pot 4
€4.5k
€4k
Pot 2
€2k Pot 1 €1.68k
€2.94k
€1.26k Pot 2
€946 Pot 3 €4.66k
€450 Pot 4
Pot 3
paid to Simon Pot 1
€3.31k
€4.26k
€2k
€0
Year 5 Simon’s bonus is 25% and his current salary is €47k.
Pot 2
€1.68k Pot 4
€4k
€11.75k bonus
paid to Simon in €11.75k
March
Pot 5 Pot 3
€5.88k 3.31k
Question1 How much bonus will he get in
October of 5th year
Question 3:
Design a generic formula in excel for 6th year
bonus
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1 How much will be the LTIP on year 6, if the bonus on year 6 is 9000.
Present your analysis in excel
4 On year 3 if the bonus is changed to 6500 instead of 9460,then how much will be LTIP on year 3, 4, 5.
6. design the product for this system assuming this is to be done for 1000 employees: Note that things factors will be different
between 1000 employees
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