Those goals are expected to be similar to ones outlined in a new executive compensation plan that grades performance based on return on assets and tangible common equity, the people said.

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In the case of Alex Rodriguez, issues have already developed with deferred compensation, legitimacy of performance, marketing agreements based on home run milestones, signing bonuses and compensation in the latter years of the contract.

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Incentive compensation awards will be based on pre-determined performance goals that can be measured.

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The foundation and others have estimated that it could cost between 1.5% and 2% of the overall budget for teacher compensation and benefits to implement a feedback and evaluation system based on multiple measures of teaching performance.

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Stock options with an exercise price of fair market value or higher on the grant date qualified as cap-exempt performance-based compensation, while service-vested restricted stock did not.

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