1. COMPENSATIONCOMPENSATION
MANAGEMENTMANAGEMENT
ASSIGNMENTASSIGNMENT
LONG TERM AND SHORT TERMLONG TERM AND SHORT TERM
INCENTIVE PLANS OF BRITISHINCENTIVE PLANS OF BRITISH
PETROLEUMPETROLEUM
SUBMITTED BY:SUBMITTED BY:
NAZISH RIAZ- ID: 11072NAZISH RIAZ- ID: 11072
SUBMITTED TO:SUBMITTED TO:
MS. SHEHLA HUSSAINMS. SHEHLA HUSSAIN
2. Long term incentive plan:
Long-term incentive plans require sustained performance of the organization for a period longer
than one fiscal year for maximum benefit to the employee. Some plans are based on common
shares of the organization and may require investment by the employee, while others are based
on financial performance and may be paid out in cash.
Stock Option:
• The Canada and Quebec Pension Plans.
• Retirement Plan
• Any local, state, provincial or federal government disability or retirement plan
or law with benefits payable for injury or illness as the result of employment
with British petroleum
• Any work-loss provision.
• Any workers' compensation, occupational disease or unemployment
compensation law or similar state or federal law with benefits payable for
injury or illness as the result of employment with British petroleum
• Social Security disability or retirement benefits you or any third party receives
(or is assumed to receive) on behalf of you or your dependents.
• Amounts paid by a third party because of loss of earnings or earning capacity
through settlement, judgment, arbitration or otherwise, regardless of whether
liability is determined.
• Any disability earnings. If work incentive benefits apply to you, your Long
term benefits will be reduced to the extent required under the work incentive
benefit calculation.
• Early Retirement eligibility. Early retirement eligibility affects the amount, and
not the timing, of your benefit. You are eligible for early retirement benefits,
as long as: o You are at least age 50 and have 15 or more years of vesting
service at the time your employment ends with BP. o You were a participant in
the Amoco heritage plan on August 1, 1989 and on your employment
termination date, you are at least age 55 and the sum of your age plus years
of service equals at least 75.
3. • The BP Group Long-Term Care Insurance Plan offers you and your family
financial protection in the event a covered participant requires long-term care
services.
• BP long-term disability (LTD) plan
• If you are receiving LTD benefit payments when your coverage ends, payment
of those benefits will continue until you recover from your disability or the
maximum benefit period has been exhausted, whichever happens first?
• Education benefits that include tuition reimbursement and a renewable
undergraduate scholarship fund for dependents of Company employees
• Awards under the long-term incentive plans have three separate elements,
one that is dependent on market-based conditions (BP shareholder return
against the market) and two that are dependent on non-market-based
conditions (return on average capital employed and earnings per share
growth).
Short term incentive plan:
Short-term incentives are rewards that are based on the attainment of short-term goals typically
over a performance period of 12 months or, in some cases, fewer than 12 months.
• Basic salary or wages (including before-tax contributions for benefits).
• Overtime pay.
• Shift and rate differentials.
• Payment by mileage for drivers.
• Commissions.
• Payments made under an annual incentive plan at the business or stream level.
• Lump sum performance awards paid in connection with annual salary
administration.
• Pay based on piecework.
• Any salary or wage continuance plan offered by the e9mployer (including STD
benefits
• BP short-term disability (STD) plan (BP's Short-Term Disability (STD) Plan
provides income protection if you are ill or injured and unable to work.
• Annual Incentive Plan (AIP)
• Discretionary Bonus Plan
