Question: explain how got to answer A CEO at a Retail company has a base salary of $950,000 with a target bonus of 125% & LTI

 explain how got to answer A CEO at a Retail company

explain how got to answer

A CEO at a Retail company has a base salary of $950,000 with a target bonus of 125% & LTI grant of $5,500,000. The role also provides for an annual perquisite allowance of $30,000 per year. The STI goals are: Net Income Metric I (60%) Metric 2 (40%) 50% $15,000 $24,000 100% $23,000 $34,000 200% $36,000 $46,000 Cash Flow LTI Mix is: Stock Options RSUS 25% 25% 50% 3-Year Cliff Vest 3-Year Cliff Vest 3-Year Cliff Vest PSUS The stock price $100 on the date of grant is used for allocation of RSUs and PSUs. The Black-Scholes value is $25 3) in 3 years, the stock price is $133.50. If the employee exercises all of the stock options, how much will he/she receive? 4) in 3 years, the stock price is $133.50. If the employee sells their RSUS, how much will he/she receive

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