01—Abstract
Summary
Summary of the 8-K filed March 8, 2021. Cited figures are marked; the original filing is the authoritative source.
CBRE Group, Inc. (CBRE) has filed an 8-K report detailing amendments to its Executive Bonus Plan (Amended EBP), approved by the Board of Directors on March 3, 2021.
These changes, effective for the 2021 plan year and onwards, alter the methodology for calculating executive bonus awards. Specifically, the Amended EBP will now bifurcate bonus calculations into a "Financial Performance Portion" and a "Strategic Performance Portion." Under the new structure, the Compensation Committee will determine the weighting of these two portions at the beginning of each plan year.
Separate adjustment factors will then be applied to each portion, and the sum of the adjusted Financial and Strategic Performance Portions will determine the executive's total annual bonus award. This revised plan aims to align executive compensation more closely with both financial and strategic objectives, offering a more nuanced approach to incentive compensation.
02—Key points
Key Highlights
- CBRE Group, Inc. amended its Executive Bonus Plan (Amended EBP) effective for the 2021 plan year.
- The amendments change how executive bonus awards are calculated following a performance year.
- Bonuses will now be determined by a combination of a "Financial Performance Portion" and a "Strategic Performance Portion."
- The Compensation Committee will set the allocation between financial and strategic measures at the start of each plan year.
- Separate adjustment factors will be applied to both financial and strategic components of the bonus.
- The total bonus award will be the sum of the adjusted financial and strategic performance portions.
- The Amended EBP is intended to better align executive compensation with both financial and strategic company goals.
03—Questions
Frequently Asked Questions
What is the main change in the Executive Bonus Plan?
The main change is the introduction of a dual-component structure for calculating bonus awards. Executive bonuses will now be based on a 'Financial Performance Portion' and a 'Strategic Performance Portion,' each with its own adjustment factors.
When do these changes take effect?
The amendments to the Executive Bonus Plan are effective for the plan year beginning in 2021.
Who determines the weighting of financial versus strategic performance?
The Compensation Committee of the Board of Directors will determine the portion of an executive's target award that will be earned based on financial performance measures and the portion based on strategic performance measures at the beginning of each plan year.
How is the final bonus award calculated?
The final bonus award is calculated by applying separate adjustment factors to the 'Financial Performance Portion' and the 'Strategic Performance Portion,' and then summing these adjusted amounts together.
04—Continue