Springbok Corporation
Springbok Corporation ("Springbok" or the "Company"), an SEC registrant, is a retailer of sporting goods, specializing in selling rugby equipment and clothing to rugby players in the USA, South Africa, New Zealand, Australia, the United Kingdom, and France. Springbok Corporation sells items like rugby balls, jerseys, and boots through both retail outlets and an on-line website.
On January 1, 20X6, the Company implemented a Long-Term Incentive Plan (LTIP) for certain of its employees. At the beginning of each year, a target cash bonus based on a specific dollar amount is established for each employee. Each employee in the LTIP will receive a predetermined percentage of his or her target bonus at the end of three years based on the total return on the company's stock price relative to its competitors over the three-year performance period. The return on the company's stock price is ranked with its competitors from the highest to the lowest performer, and, based on the company's ranking, each employee will receive a percentage of his or her target bonus, which increases or decreases as the company's ranking increases or decreases.
For example, at the beginning of the three-year performance period, a company sets a target cash bonus for an employee of $100,000. The company decides to include nine of its competitors in its peer group for purposes of establishing a ranking. Depending on the ranking, the employee will receive a percentage that ranges from 0% to 200% of the target bonus. For instance, if the company ranks first in terms of stock price return, the employee will receive 200% of $100,000, or $200,000; if the company ranks fifth, the employee will receive 100% of $100,000, or $100,000; and if the company ranks tenth or last, the employee will not receive a bonus.