Performance Unit Award Agreements are legal instruments representing a contract between an executive and her employer for the payment of “performance units”, which, as the name suggests, are bonuses based on performance. The bonuses typically come in the form of cash, equity, or a combination of both. The performance metrics that determine that award are outlined in either the body of the agreement or in an addendum. Typically the award is based on the success of the company as defined by Relative Return on Investment (”ROI”), or Relative Net Sales Gains, as compared to similar executives at the company’s competitors. Often the performance unit award agreement is related to a overarching Performance Unit Award Plan, for which a committee is empowered to set guidelines.

RealDealDocs.com is a division of Practice Technologies, Inc. the creators of SmartRules.com.
SmartRules provides step by step guides to local rules and civil procedure for state courts & federal courts throughout the country.

Popularity: 3% [?]