Axis Executive Bonus Plan Examined
Axis executives have a bonus plan that pays them a maximum of 388% of their annual salary for performance concluding at the end of this year.
Inside this note, we examine what the plan is, the incentives the plan provides and how this impacts Axis's go-to-market today and in the future.
*** ****, ******** ** *****, **** Axis ********** ** ** ***% ** their ****** ****** *** ********* *********** over * *-**** ****** **** **** to **** ****** ** ******* *** profit ******,** **************:
*** *** ******* ** *********** ** the ******* ***, ******** **** (*) certain *********** ******** ***** *** ****** the ****** * ******* **** – 31 ******** **** (*** “****-**** ******”), (ii) **/*** ** ******** ** * group ******* ********** (**, ***** ******* circumstances, ****** *** ******** **) *** four-year ****** *** (***) **/*** ** still ******** ** **** *******, *** has *** ******** *** ***** ****** of ***********, ** ***date ** ******* ** ***** ****, receive a long-term remuneration (bonus) ********* ** * ******* *** ******* ** *** ****** ******. The performance criteria are based on revenue growth in local currencies and earnings before interests and taxes (“EBIT”) at group level – revenue growth 12-18 percent and EBIT 6-12 percent. Maximum bonus is paid where revenue growth is equal to or exceeds 18 percent at the same time as EBIT is equal to or exceeds 12 percent all four years [emphasis added]
**** ******** *** ********* ********* ** IPVM ***** *** **** *** *** likelihood **** ****** ***** ***** ***** not ** **** ******:
*********** *** (****-**** *********) ******* **** 2021/2022. *** ******* ** ***** **** a *********** ** ******* ****** *** profitability ** ********* ** *** **** annual ******. *********, ** *** *** program ** *******. ** *********** **** competitiveness *** * ********** ******* ***********, the ****-**** *********** ******** ***** **** ****-**** ****** *** profitability. ** ** ******* **** *** remuneration ******** *** ****-**** *********** *********. Please **** **** ***** ** *** no ****** * ******** ****** *******, official *********** ***** ************ ** *** more ******* **** ******.
Axis ************
***** ***** *** ************** ***** ****,**** ***** ****, *********** ***** ****, ** ** **** ******* *** long *** **** ************ ****** *** each *******, ********* ** ******** ** the *********** "********* ***********" ******* ****, ********, and ***************.
*******, **** ********* ***** **** ** a ***** *** ******** ********* ** how **** ** *** ************* ** its ***** ************ ********.
Axis / ********* ***** ********
** **********, **** ***** ******* *** ongoing ***** ******** ******* **** *** Milestone, ** **** ********* ** ****** its *** *********, **** ************'* *** ******* *** / ***.
**** **** ** *********** ** *** is, ***** **** ****, ******* ***** changes *** ********** *** **** *** other ********** **********.
Hit ******* *****
** ******* *** **** ***% *****, Axis *****:
******* ****** ** ***** ** ** exceeds ** ******* ** *** **** time ** **** ** ***** ** or ******* ** ******* *** **** years
***** **** ** ****** ****** ****** financials, ** ******** **** **** ****** was **** **** *** ****, ****** by *** ********.
**** *** ******* **** ******* ***** 2018, ** **** **** **** ** least **** ** *** *****.
Incentive ******* ***** ** ******** ******
******* *** ****** ********** *** ****** choices *** ***** ******* ********* ********** but *** **** ** **** *** market ** ********.
** ****/****, **** **** **** *** formulated, *** ***** ************ ****** *** dealing **** * **** ** *** bottom, ***** *** ********** ********** *** not ******** *** ***** *** ********, led ** *********.
***, ** ****, *** **** ** the ****** ** ****, *** ********* has *** *** **********, *** *** video ************ ****** *** ******* ** increasingly ******* ** ***** ********* *** cloud, * ***** ***** **** ********** ** ****** ******.
*** **** *** **** ** **** it *** **** ***** ** ******** short-term ***********, *** *** ******* ** Canon's *****-**** ******* *** *** *** executive's ***** ****, *** ***** **** worse *** ** *** **** **** to *******.
*******
**** *** ******** ** ******* **** Milestone *** ******* *** **** * strong ***** ******** *** **** ********* will ***** ******** ******* *** ***** to ****, ****** ** ***** ****** position ***** **** * *******. *** risk, ******, ** **** **** **** allow ***** ******** ** ***** ** stronger, ************-***** **********, **** ********** ******* the ***** ***** ************ ********* ***** in *** *****.