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LTIP
LTIP
€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
Present the analysis for each year in an excel sheet.
Consider Jan to Dec fiscal year.
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.
Present your analysis in excel
5 Derive a Generalized formula, in excel for 6th year bonus
Present your analysis in excel
6. design the product for this system assuming this is to be done for 1000 employees: Note that factors will be different
between 1000 employees
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