Premium Essay

Award-Term Incentives

In: Business and Management

Submitted By questioncat
Words 1382
Pages 6
We have just exercised the last option on the current Navy contract and must start the process to re-compete the next contract for this on-going requirement. The new contract will be valued at over $150 million. The current contract is a fixed price award fee, but recently we went to a briefing given by the Air Force on a relatively new type of contract incentive called Award Term and are considering this as an option. There has been much discussion on what type of contract we will use for the re-compete for the follow on contact. In this paper I will cover the background of the award term incentive acquisition, compare different types of contracts, discuss the pros and cons of the award term method, and whether it meets the Competition in Contracting Act (CICA) requirements. If you search the Federal Acquisition Regulation (FAR) for award term incentive, you won’t find it there. It was designed by Mr. Thomas Jordan in 1997 at Kelly Air Force Base. He used it on a task order contract for the Air Force’s Aeronautical Systems Centers award to McDonnell Douglas Corporation for services on the F-15C aircraft. The contract had a seven year base period, which the contractor could extend to 15 years by rendering excellent service. This type of incentive was not in the Federal Acquisition Regulation (FAR), but was comparable to the award-fee incentive-type contract found in the FAR Part 16.405-2 [1]. Acquisitions that have included award term incentives have been conducted by the Air Force, but the National Aeronautics and Space Administration (NASA), the Naval Facilities Engineering Command (NFEC), the Naval Sea Systems Command (NSSC), the Army’s Ft. Drum in New York, and the General Services Administration have all conducted or announced plans to conduct acquisitions that include award term incentives. Those acquisitions include or plan to include provisions...

Similar Documents

Premium Essay

Comparitive Study

...Q1 Explain the importance of compensation management and detail how organization handle its complexities? Ans1 Compensation and reward system plays vital role in a business organization.since, among four Ms, i.e. men, material, machine and money, men has been most important factor, it is impossible to imagine a business process without men. Every factor contributes to the process without men. Every factor contributes to the process of production/business. It expects return from the business process such as rent is the return expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly the labourexpects wages from the process. Labor plays vital role in bringing about the process of production /business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labor therefore expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: 1) An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. 2) It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable. 3) Such a system should be well defined and......

Words: 3054 - Pages: 13

Premium Essay

Fluor

...6MAR2013032 Fluor Corporation 6700 Las Colinas Boulevard Irving, Texas 75039 March 13, 2013 Dear Stockholder: You are cordially invited to attend the Fluor Corporation 2013 annual meeting of stockholders. The meeting will be held on Thursday, May 2, 2013, beginning at 9:00 a.m. Central Daylight Time, at Fluor Corporation, 6700 Las Colinas Boulevard, Irving, Texas 75039. Information about the meeting is presented on the following pages. In addition to the formal items of business to be brought before the meeting, members of management will report on the company’s operations and respond to stockholder questions. A map showing the meeting location is included for your convenience on the back page of this booklet. We hope that you will be able to attend the meeting. However, whether or not you plan to attend the meeting, we encourage you to review our proxy materials and promptly cast your vote over the Internet or by telephone. Alternatively, if you request or receive a paper copy of the proxy materials by mail, you may vote by signing, dating and mailing the proxy card in the envelope provided. Voting in one of these ways will ensure that your shares are represented at the meeting. Thank you for your continued support of Fluor Corporation. I look forward to seeing you on May 2nd. Sincerely, 4MAR201114342169 David T. Seaton Chairman and Chief Executive Officer NOTICE OF ANNUAL MEETING OF STOCKHOLDERS To Be Held May 2, 2013 The annual meeting of stockholders of Fluor......

Words: 53622 - Pages: 215

Premium Essay

Energy

...Dear Fellow Stockholder: At the request of the Board of Directors, you are cordially invited to attend the 2013 Annual Meeting of Stockholders of Newpark Resources, Inc., which will be held on Thursday, June 6, 2013, at 10:00 a.m., Central Daylight Time, at The Marriott Woodlands Waterway Hotel & Convention Center, 1601 Lake Robbins Drive, The Woodlands, Texas 77380. Both your Board of Directors and I hope you will be able to attend. There are five items on this year’s agenda: (1) the election of six directors to the Board of Directors; (2) an advisory vote to approve named executive officer compensation; (3) to consider and act upon a proposal for the approval of the amendment and restatement of the Newpark Resources, Inc. 2006 Equity Incentive Plan; (4) to consider and act upon a proposal for the approval of an amendment to the 2008 Employee Stock Purchase Plan to increase the employee discount from 5% to 15%; and (5) the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year 2013. These items are described fully in the Notice of Annual Meeting of Stockholders and the accompanying Proxy Statement. Whether or not you plan to attend the Annual Meeting, it is important that you study carefully the information provided in the Proxy Statement and vote. Please promptly vote your shares by telephone, by the internet or, if the Proxy Statement was mailed to you, by marking, signing, dating and returning the......

Words: 70239 - Pages: 281

Premium Essay

Compensatin

...Compensation – The sum total of all forms of payments or rewards provided to employees for performing tasks to achieve organizational objectives Rs Compensation- Nature and scope • The complex process includes decisions regarding variable pay and benefits • It suggests an exchange relationship between the employee and the organization • It involves design, development, implementation, communication and the evaluation of reward strategy and process of the organization Compensation Objectives 1. 2. 3. 4. To reward employees’ past performance fairly, in line with efforts, skills and competencies To attract and retain competitive high performing employees To motivate the high performing employees and reinforce desirable employee behaviour To remain competitive in the labor market 5. 6. 7. To align employees’ future performance with organizational goals To communicate the employees their worth to the organization To provide employee social status • Strategic compensation – Using the compensation plan to support the company’s strategic aims. – Focuses employees’ attention on the values of winning, execution, and speed, and on being better, faster, and more competitive.. • IBM Strategic Compensation Planning • Strategic Compensation Planning – Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization. – Serves to identify the net monetary payments made to employees with specific functions of...

Words: 2834 - Pages: 12

Free Essay

Vedanta Renum Report

...Part II of the report sets out the information on which the auditors are required to report to the Company’s members. Of necessity, the design of remuneration policy will evolve from year to year in line with the Company’s strategic needs. Given the current unprecedented economic situation the Remuneration Committee will keep under close review remuneration policy and incentive plans during the forthcoming year. The Remuneration Committee will continue to give full consideration to the principles set out in the Combined Code on Corporate Governance in relation to Directors’ remuneration and to the guidance of investor relation bodies. The report has been approved by the Board and signed on its behalf by the Chairman of the Remuneration Committee. A resolution to approve this report will be proposed at the Company’s Annual General Meeting to be held on 27 July 2009. Part I (Unaudited) Remuneration Committee (the ‘Committee’) The Board has established a Remuneration Committee in accordance with Provision B.2.1 of the Combined Code to determine on behalf of the Board the Company’s policy on the remuneration and terms of engagement of the Executive Directors and certain senior executives. During 2008–09 the Committee comprised: – Mr Naresh Chandra (chairman) – Mr Euan Macdonald – Mr Aman Mehta All three members of the Committee served during the year and are all independent Non-executive Directors. The Committee’s...

Words: 5269 - Pages: 22

Premium Essay

Delirious

... | | | |Pay for Performance |12 | | |And Financial | | | |Incentives | | | |Lecture Outline | | | |Strategic Overview |In Brief: This chapter gives an overview of money | | |Money and Motivation: An Introduction |and motivation, and then outlines different | | |Performance and Pay |incentive programs that are used for different | | |Individual Differences |types of employees. It also discusses | | |Psychological Needs and Intrinsic vs. Extrinsic...

Words: 4952 - Pages: 20

Premium Essay

Marketing

...Seattle, Washington January 26, 2012 Dear Shareholders: You are cordially invited to attend the Starbucks Corporation 2012 Annual Meeting of Shareholders on March 21, 2012 at 10:00 a.m. (Pacific Time). The meeting will be held at Marion Oliver McCaw Hall at the Seattle Center, located on Mercer Street, between Third and Fourth Avenues, in Seattle, Washington. Directions to McCaw Hall and transportation information appear on the back cover of the notice of annual meeting and proxy statement. Under the Securities and Exchange Commission rules that allow companies to furnish proxy materials to shareholders over the Internet, Starbucks has elected to deliver our proxy materials to the majority of our shareholders over the Internet. This delivery process allows us to provide shareholders with the information they need, while at the same time conserving natural resources and lowering the cost of delivery. On January 26, 2012, we mailed to our shareholders a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access our proxy statement for our 2012 Annual Meeting of Shareholders and fiscal 2011 annual report to shareholders. The Notice also provides instructions on how to vote online or by telephone and includes instructions on how to receive a paper copy of the proxy materials by mail. The Notice will serve as an admission ticket for one shareholder to attend the 2012 Annual Meeting of Shareholders. On January 26, 2012, we also......

Words: 44081 - Pages: 177

Premium Essay

R and R

...sales goals, achieving quality, outstanding performance in a given situation, or delivering a special project. Typical rewards are money in a form of a bonus, trips paid for by the company, gifts from a rewards catalog, or services such as cell phone or paid cable. TYPES OF REWARDS Selecting the appropriate rewards is vital to any programs success. The goal in choosing rewards is to select items that will spark the participant’s interest or feelings, and support the program’s objectives. Effective rewards will both motivate short-term behavior and provide motivation over time. VARIABLE PAY Variable pay or pay-for-performance is a compensation program in which a portion of a person's pay is considered "at risk." Variable pay can be tied to the performance of the company, the results of a business unit, an individual's accomplishments, or any combination of these. It can take many forms, including bonus programs, stock options, and one-time awards for significant accomplishments. Some companies choose to pay their employees less than competitors but attempt to motivate and reward employees using a variable pay program instead. According to Shawn Tully in Fortune , "The test of a good pay-for-performance plan is simple: It must motivate managers to produce earnings growth that far exceeds the extra cost of [the program]. Though employees should be made to stretch, the goals must be within reach." BONUSES Bonus programs have been used in American business for some time.......

Words: 7490 - Pages: 30

Free Essay

Incentive Plans Paper

...Running Head: Incentive Plans Paper * * * * * * * * Incentive Plans Paper Myra Callahan University of Phoenix MGT/431 Human Resources Management Brad Bridges March 6th, 2011 The organization’s incentive plans relate to organizational objective because of the involvement of the financial goals for the company. Objectives define strategies or implementation steps to attain the identified goals. Unlike goals, objectives are specific, measurable, and have a defined completion date. They are more specific and outline the “who, what, when, where, and how” of reaching the goals. The development of the objectives will be to help achieve goals by dividing them into manageable components (Workforce Development, 2009). Therefore, the objectives and incentive plans go hand in hand. Incentive Plans Incentive plans are not successful when it is extremely broad and is not created for the employees or staff members. There is a saying, “all for one and one for all,” that is no longer effectively accepted into the business world. It definitely discourages those trying their best in their job performances. This certain style of increase sharing is like an entitlement. Being that some employees slack in their performances, the productive employees will reject that style of incentives. Everyone must have a clear understanding of the incentive compensation and how it connects to his or her effort. A well thought out compensation......

Words: 905 - Pages: 4

Premium Essay

Pro. Ji

...2014 ANNUAL REPORT AND PROXY STATEMENT Chipot le Mexican Grill, Inc. 1 401Wynkoop Street, Suite 500 en er, 0 0 arch , 01 5 DEAR FELLOW SHAREHOLDERS: When we set as our mission to change the way people think about and eat fast food, we knew it was a big and dif cult, but ery important, goal n establishing this mission for hipotle, we belie ed that we had a food culture and a people culture that would allow us to create a new fast food model, and unit economics that would enable us to do this in a way that was pro table and that would pro ide outstanding returns to our shareholders hroughout , we ha e seen increasing e idence that our ision is becoming reality idence of hipotle s continued leadership and in uence comes in many forms, from our ongoing uest to make the ery best tasting food we can made with the ery best ingredients and prepared using classical cooking techni ues to the strengthening of our people culture, strengthening of consumer trends that support our business model, our in uence on the category and our performance relati e to the industry as a whole uring the year, in our pursuit for better ingredients we ser ed more esponsibly aised® meat (from animals raised in more humane ways and without the use of antibiotics or added hormones) than any other restaurant company We continued to use dairy products made with milk from pastured dairy cattle We remain committed to our program of using local and organically grown produce whene er possible nd we continued to......

Words: 104933 - Pages: 420

Premium Essay

Aw Aw Aw a

...KRISPY KREME DOUGHNUTS INC (KKD) DEF 14A Definitive proxy statements Filed on 05/11/2012 Filed Period 06/12/2012 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant [X] Filed by a Party other than the Registrant [ ] Check the appropriate box: [ ] Preliminary Proxy Statement [ ] Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [X] Definitive Proxy Statement [ ] Definitive Additional Materials [ ] Soliciting Material Under Rule 14a-12 KRISPY KREME DOUGHNUTS, INC. (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if Other Than the Registrant) Payment of Filing Fee (Check the appropriate box): [X] No fee required. [ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. 1) Title of each class of securities to which transaction a 2) 3) Aggregate number of securities to which transaction Per unit price or other underlying value of transactio Exchange Act Rule 0-11 (set forth the amount on wh calculated and state how it was determined): Proposed maximum aggregate value of transaction: Total fee paid: 4) 5) [ ] [ ] Fee paid previously with preliminary materials: Check box if any part of the fee is offset as provided by Exchange Act Rule......

Words: 59365 - Pages: 238

Free Essay

Compensation Management

...Compensation Management (PACM) Release 4.6C HELP.PACM Compensation Management (PA-CM) SAP AG Copyright © Copyright 2001 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft , WINDOWS , NT , EXCEL , Word , PowerPoint and SQL Server are registered trademarks of Microsoft Corporation. IBM , DB2 , OS/2 , DB2/6000 , Parallel Sysplex , MVS/ESA , RS/6000 , AIX , S/390 , ® ® ® AS/400 , OS/390 , and OS/400 are registered trademarks of IBM Corporation. ORACLE is a registered trademark of ORACLE Corporation. INFORMIX -OnLine for SAP and Informix Dynamic Server Informix Software Incorporated. ® ® ® ® ® ® TM ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® are registered trademarks of UNIX , X/Open , OSF/1 , and Motif are registered trademarks of the Open Group. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C , World Wide Web Consortium, Massachusetts Institute of Technology. JAVA is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow,......

Words: 23388 - Pages: 94

Premium Essay

Staples 2011 Annual Report

...2011 Annual Report Notice of Annual Meeting and Proxy Statement We bring easy to your office. Staples is the world’s largest office products company and y a trusted source for office solutions. The company proy Revenue Mix2 2008 2007 2009 North American Delivery North American Retail vides products, services and expertise in office supplies, copy & print, technology, facilities and breakroom, and furniture. Staples invented the office superstore concept in 1986 and has annua sales Revenues ($B)1 2007 2008 2009 2010 2011 2010 2011 Diluted Earnings Per Share 3 in the world in eCommerce sales. With 88,000 associates worldwide, Staples operates in 26 countries throughout North and South America, Europe, Asia and Australia, making it easy for businesses y r of all sizes and consumers. f The company is headquartered outside Boston. More information about Staples (Nasdaq: SPLS) is available at www.staples.com/media. Cash Flow Generation ($M) of $25 billion, ranking second f Operating Cash Flow 2007 As Adjusted 2007 2008 2009 2010 2011 2008 2009 2010 2011 Free Cash Flow Capita Expenditures 2007 2008 2009 2010 2011 Stores Open at Fiscal Year End 2007 Dividends Per Share 2008 2009 2010 2011 1 2 2008 revenues include $4.2 billion of revenues from Corporate Express for the period July 2008–January 2009. f 2008 revenue mix includes $2.3 billion of North American Delivery...

Words: 117583 - Pages: 471

Free Essay

Axp Management Compensation

...A Snapshot of AXP Management Compensation Overview: Compensation Package Philosophy and Design The idea behind American Express (AXP) executive compensation program is to reward outstanding leadership that drives results and cultivates sustainable shareholder value. Paying awards in various time horizons from short term, medium term, to long term, the company works on aligning the interest of its shareholders and senior executives. A combination of fixed but predominantly variable awards is structured to encourage annual and sustainable performances. To study its executive compensation plan, the composition of payout package can be divided in terms of base salary, annual incentive award, cash portfolio grant award, performance restricted stock award, and stock option award (see Exhibit 1). CEO’s 50% versus other executive’s 59% short-term compensation encourages focus on long-term performances. In fact, “over 84% of the total direct compensation delivered in 2013 was variable and tied to performance, including financial results, strategic initiatives, and stock performance” (AXP Proxy Statement). A detailed description of the performance measurement is shown in Exhibit 2. Analysis: Management Performances versus Management Compensation The executive management at AXP may seem to be excessively over-compensated to some outside analysts but not to the internal board. From 2013 to 2014 (see Exhibit 3), target revenue growth of 8% annually was missed by half and EPS growth......

Words: 631 - Pages: 3

Premium Essay

Compensation Package Blackberry

...Summary Elements of Executive compensation package The information below is taken from proxy circular- fiscal 2013. Main components of the executive compensation are: base salary; annual incentive; long-term incentive; retirement savings; and other compensation. The purpose of each of these elements is given below: Base salary (annual fixed): this compensation provides to executive officers for their everyday services and reflects their role within the company, personal performance, experiences and contribution to the company. Annual Incentive (variable): for an individual executive, this award depends upon their overall company performance and individual goal set for the fiscal year. Long-term incentives (variable): awards paid in the stock options and/or RSU (restricted share units). The purpose of this award is to give executives a longer-term interest in the success of the company. Apparently, this reduces the influence to engage in the opportunistic behavior and motivates them to create and maintains the shareholders values. Retirement saving (long-run): This element supports Executive Officers in saving for their retirement and Company matching program made available to all employees of the Company. Other Compensation (Short & Long-Term): These programs are designed for the health and wellness of all employees. This program is same for companies al employees including executive officers. Cost Optimization and Resource Efficiency (“CORE”) program: In March...

Words: 745 - Pages: 3