Pay Plan

[PWILBURN]

We are large wholesale parts dealer and I want to develop a monthly bonus for the inventory control manager. I am looking at bonus that would pay a % of total P&A gross for the month based on level of service and obsolesence. I propose to take Level of Service % and subtract obsolesence % for 12 months no movement(by dollars not part#). I would then tier bonus factor based on this calculation. Example: Level of Service 85% - Obsolesence 5% = 80%.....the idea being to increase service but not promote speculative buying.