Administration of the bonus pool and awards to executives are made by a
committee of directors who are ineligible to participate in the scheme. Awards
are made in cash, stock, stock options or dividend equivalents. 5 The bonus
contract usually permits unallocated funds to be available for future bonus
awards. Plans also provide for award deferrals over as many as five years,
either at the discretion of the compensation committee or the manager.
3.