If your last day is 12/31 by layoff, is the STI calculated based on company and individual performance in 2015? or it will be 100% because you were laid off.
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This is how I understand it...
2015 STI will be calculated and paid as normal since you are assumed on the payroll through the end of year.
In addition, 100% of your annual STI went into your severance calculation. So you will get a pro-rated amount in that severance check. This is clearly shown on the worksheet given to me with the details of my severance calculation.
So bottom line, 2015 severance is paid as if you were a employee and is NOT included in the severance calculation. You will receive x weeks of severance of your base bay + target STI at 100% calculated out to a weekly number.
I look at it this way...getting 2015 STI as normal, plus getting 2016 STI for the weeks earned in the severance calculation.
I was told that for the purposes of your severance pay, your STI was calculated at 100%, but your actual STI award in Feb/March is what ever the actual percentage is for those still working.
When I was laid off, STI was calculated at a 70% performance level. I was not prorated for the year, but the STI was not awarded at 100%. I saw in the HR handbook that RIF'd personnel are paid at 70% achievement level.
It is %100
It will be calculated as normal, and you will be paid after it has been.