This excerpt taken from the HPQ 10-K filed Dec 21, 2005.
The FY'06 PfR program runs November 1, 2005 through October 31, 2006
This statement confirms your participation in the FY'06 Pay-for-Results (PfR) program* based on your current eligibility status. Important changes have been made to the program for FY'06 to make it simpler, easier to understand, and more aligned with HP's operating model:
FY'06 Metrics and Bonus Opportunity
The PfR program is a variable pay program and ultimate payment is discretionary based upon achievement of business objectives with participation and payout subject to the terms and conditions of the PfR plan. Your current status and participation does not guarantee future status and participation in PfR. HP's variable pay philosophy allows participation in only one variable pay program; payments made from other programs may preclude your participation in PfR this period. Refer to Business Group-specific plan documents or websites for additional information in this regard.
As a normal part of aligning its Total Rewards, HP continues to monitor the competitiveness of its variable pay programs and adjusts performance measurement goals, bonus opportunities and plan eligibility to reflect business requirements and market norms.
To read about other important changes to the FY06 PfR program, please go to the variable pay website at:
If you have questions about the information specific to you, please contact me or Contact HR.