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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1569 |
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Another reason for the upper cutoff level on the incentive payments might be a desire of not paying lower-level mangers more than upper level managers. In this case, a SM gets 72,547.32 pesos in average, RMs get 141,640.00 pesos, and CMs get 254,952.00 pesos. A top-performing SM cannot earn more than 118,189...
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A top-performing SM cannot earn more than 118,189.68 pesos in bonus. This is less than the CM’s bonus, so in this case the upper cutoff definitely ensures that the lower-level managers cannot earn more than the upper-level managers.
The bonus pools will be assigned to managers based on their entity’s ROI, given by following formula: ROI = (bonus eligible revenues – expenses) / total store investments...
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