PUP (performance unit plan)
A PUP (performance unit plan) is an executive benefit plan that rewards the performance of an executive with "units". Each "unit" has a monetary value that is tied to a specific formula determined by the employing organization. The formula is driven by certain performance criteria such as ROA, ROE, revenue growth, net income or a combination of multiple factors. Each year a valuation of the "units" takes place and the executive can see the value of their "units". Organizations can choose to reward additional "units" at certain levels of performance, different levels of management or other criteria as chosen by the organization. "PUP" plans are similar to other executive benefit plans in that they can include vesting schedules, early retirement, retirement, and death and disability provisions.
A PUP (performance unit plan) is an executive benefit plan that rewards the performance of an executive with "units". Each "unit" has a monetary value that is tied to a specific formula determined by the employing organization. The formula is driven by certain performance criteria such as ROA, ROE, revenue growth, net income or a combination of multiple factors. Each year a valuation of the "units" takes place and the executive can see the value of their "units". Organizations can choose to reward additional "units" at certain levels of performance, different levels of management or other criteria as chosen by the organization. "PUP" plans are similar to other executive benefit plans in that they can include vesting schedules, early retirement, retirement, and death and disability provisions.
Performance Unit Plan
