This flowchart defines the steps for the executive bonus process. Sample steps include: the bonus program is documented and approved by the board of directors and select committees; bonus calculations are performed by unit managers; bonus calculations are approved by the CEO; final bonus pay-outs are approved by the board of directors/compensation committee; Form 8-K is filed when bonus payouts are finalized; bonuses are input for payment; bonuses input are reviewed for accuracy; payroll accounts are reconciled; and executive bonuses are disclosed in financials. This document should be used as a general guide to understand and review this business process. Organizations should customize this tool to ensure that it reflects their business operations and continuously monitor the process to ensure that the steps described are accurate.
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