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Survey Results: Currency Fluctuations for Incentive Compensation

1. Does your company adjust incentive goals/results for currency rate fluctuations?
  Answer Responses Percent  
Yes, as a policy consistently applied 18 23.7%
Occasionally, as ad hoc decisions made across years 11 14.5%
No, we never do 32 42.1%
Not sure, it hasn’t come up 15 19.7%
2. If your answer to #1 above was “yes,” what is the percent of impact currency rate fluctuations must have for neutralization (i.e. what is the swing/change in the metric due to the currency fluctuation before things get adjusted)?
  Answer Responses Percent  
Less than 5% 13 61.9%
5% to 9% 2 9.5%
10% to 14% 3 14.3%
15% to 19% 0 0.0%
20% to 24% 3 14.3%
25% or more 0 0.0%
3. If your answer to #1 was “occasionally” or “never,” are your incentive compensation performance measures predominantly return measures?
  Answer Responses Percent  
Yes 14 31.8%
No 29 65.9%
Not applicable (we don’t use performance measures for our incentive compensation) 1 2.3%
4. If your company makes ad hoc decisions, is the issue decided on whether management raises the issue & how large the impact is?
  Answer Responses Percent  
Yes 15 41.7%
No 3 8.3%
Not sure, it hasn’t come up 18 50.0%
5. If you do adjust your incentive goals/results for currency rate fluctuations, to which type of incentive programs are these adjustments made?
  Answer Responses Percent  
Short-Term 20 60.6%
Long-Term 2 6.1%
Both Short-Term & Long-Term 11 33.3%

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