The individual component of STIP awards is tied directly to the individual’s PMP objectives established under the Performance Management Program (PMP). A PMP rating (from Unsatisfactory to Outstanding) will be assigned to each of the individual’s PMP objectives.
The performance ratings are determined on the basis of three dimensions:
1.achievement of objectives against the standards and measures established for each objective;
2.context of performance throughout the year; and
3.peer clustering of employees into a distribution profile established by the Company.
The context of performance dimension considers the “how” of the achievement and adds a necessary judgmental component to the assessment process. The demonstration of company values must be considered.
Taking the three dimensions into account, through the calibration process, an overall PMP rating and an overall STIP attainment level, based on the scales below, are determined for the employee’s individual performance component.
Overall PMP Rating Overall STIP Attainment Level
Outstanding 170% - 200%
Exceeds 125% - 165%
Achieved 90% - 120%
Partially Achieved 0% - 85%