This excerpt taken from the HPQ 10-Q filed Jun 8, 2005.
HR and Compensation Committee of the HP Board of Directors has final approval of recommended funding
funding is at the discretion of executive management to recommend, is based on operational performance and takes into account our earnings commitments
targets are exceeded, any additional funding is at the discretion of executive management to recommend and is based primarily on gross margin improvement, in addition to
net profit, revenue, and TCE results
between threshold and target is distributed formulaically
above target is distributed 50% formulaically and 50% by management discretion, except for Section 16 Officers for whom distribution is determined
payout cannot exceed 300% of targeted bonus opportunity