{"id":38719,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/corporate-management-bonus-plan-the-home-depot-inc.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"corporate-management-bonus-plan-the-home-depot-inc","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/corporate-management-bonus-plan-the-home-depot-inc.html","title":{"rendered":"Corporate Management Bonus Plan &#8211; The Home Depot Inc."},"content":{"rendered":"<pre>\n\n                     Corporate Management Bonus Plan           Subject 01 - 84\n\n                                                               03\/01\/91\n\n                                                               Page: 1 of 4\n\n                                    Overview:\n\nCompany Officers, Merchandisers, Associate Merchandisers, Regional Managers, and\ndesignated Directors are eligible for the Corporate Management Bonus Plan. A\nsummary of the Plan provided in this procedure.\n\n                                    Contents:\n\n\n                                                            \nIntroduction ..................................................page l\nBonus Calculations ............................................page 1\n\n\n                                     Policy:\n\nIntroduction\n\n1. Home Depot Officers, Regional Managers, Merchandisers, Associate\nMerchandisers, and designated Directors are eligible for participation in the\nCompany's bonus plan. For information related to store management, refer to SOP\n01-81, Store Management Bonus Plan.\n\n2. Bonuses are paid only to those individuals employed by the Company in a bonus\ncapacity as of the fiscal year end. Employees that resign, are terminated, or\ndemoted to a non-bonus position within the year, are not eligible for the\nyear-end bonus.\n\n3. The salary upon which the bonus is calculated is the annual regular salary in\neffect at the end of the applicable fiscal year. Bonuses are prorated for\npartial year employees (new hires or promoted to designated position) based upon\nthe number of full months service.\n\n4. All bonus amounts must be approved by the Chairman of the Board, or the\nPresident-Chief Operating Officer with notification to the Sr. Vice\nPresident\/Chief Financial Officer prior to review with the employee.\n\n5. No position or individual can be added to the Corporate Bonus Plan without\nprior authorization of the President-Chief Operating Officer.\n\n6. Quarterly statements are sent to each Corporate Bonus Plan participant\nshowing year-to-date progress toward annual bonus goals. The Vice\nPresident-Finance maintains all details concerning bonus eligibility and\ncalculations.\n\nBonus Calculations\n\n1. The bonus plan is based on the ability of the Company to meet a projected:\n\nGross Margin Return On Investment (GMROI) by department for Vice\nPresidents-Merchandising, Merchandisers and Associate Merchandisers is\ncalculated as follows:\n\n\n\n\n\n\n        GROSS MARGIN         SALES \/ STOCK RATIO                  GMROI\n                                                 \n        GROSS MARGIN    X        NET SALES        =            GROSS MARGIN\n        ------------         -----------------               -----------------\n         NET SALES           AVG. INV. AT COST               AVG. INV. AT COST\n\n\n01 - 84:  Corporate Management Bonus Plan                              Page 2\n\nReturn On Assets (ROA) for V. P.'s - Operations and Regional Managers:\n\nROA is calculated in the same manner as GMROI except net income before taxes and\ninterest replaces gross margin; total assets, which is comprised of average\nretail inventory and fixed assets, replaces inventory.\n\nReturn on Assets (ROA) for Officers and designated Directors:\n\nSame as above except assets are defined as average total assets of the Company\nper the Balance Sheet.\n\n2.   Bonuses are payable based on a percentage of salary of up to either 25% or\n50%, depending upon the individual position.\n\na.   The following positions are eligible for bonuses based on results of their\n     stores\/departments compared to plan:\n\n\n<font size=\"2\">\n                           ROA            GMROI          SALES         DISCRE-\n     POSITION            MIN. MAX.      MIN. MAX.       MIN.MAX.       TIONARY\n                                                  \nVP Operations          4.375%  17.5%     --      --     1.5%  7.5%        25%\n\nVP Merchandising          --     --   4.375%   17.5%    1.5%  7.5%        25%\n\nRegional Manager        8.75%    35%     --      --       3%   15%        --\nMerchandiser              --     --    8.75%     35%      3%   15%        --\nAssoc. Merchandiser       --     --   4.375%   17.5%    1.5%  7.5%        --\n<\/font>\n\n\nThe minimum indicates percentages earned if 100% of planned results are\nachieved. The maximum indicates percentages earned if 115% of planned results\nare achieved. Refer to the charts on the next page.\n\nb.   Officers and designated Directors are eligible for bonuses based on results\nof the entire Company compared to plan.\n\n\n\n                           ROA            GMROI          SALES         DISCRE-\n     POSITION            MIN. MAX.      MIN. MAX.       MIN.MAX.       TIONARY\n                                                  \n     50% Pool         4.375%   17.5%     --   --       1.5%   7.5%        25%\n     25% Pool        2.1875%    8.5%     --   --       .75%  3.75%      12.5%\n\n\nThe minimum indicates percentages earned if 100% of planned results are\nachieved. The maximum indicates percentages earned if 115% of planned results\nare achieved. Refer to the charts on the next page.\n\n\n \n\nPage 3               Corporate Management Bonus Plan                    01 - 84\n\n\n                                    [GRAPH]\n\n\n\n                     Regional Managers          VP Operations\n                      Merchandisers             VP Merchandising\n                                                Associate Merchandiser\n\n\n                                    [GRAPH]\n\n\n\n\n\n\n\n01 - 84: Corporate Management Bonus Plan                                Page 4\n\n3. For bonus calculations, inventory is based on the average of the 12 fiscal\nmonths. (i.e. Inventory at the beginning of the fiscal year plus each month end,\ndivided by 13.)\n\n4. Financial plans will be adjusted for scheduled new stores which open on a\ndate not contemplated in the plan.\n\n5. The Company reserves the right to adjust sales and profit plans either up or\ndown when it is obvious that the original plans were materially incorrect.\n\n\n\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7786],"corporate_contracts_industries":[9493],"corporate_contracts_types":[9539,9546],"class_list":["post-38719","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-home-depot-inc","corporate_contracts_industries-retail__building","corporate_contracts_types-compensation","corporate_contracts_types-compensation__incentive"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/38719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=38719"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=38719"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=38719"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=38719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}