This excerpt taken from the MHS DEF 14A filed Apr 14, 2005.
The executive officers of the Company, including the Named Executive Officers, are eligible each year for an annual cash bonus pursuant to the Companys Annual Incentive Plan. The Plan establishes a bonus pool based on objective performance measures. For 2004, the measures were cash EPS, net new sales, customer satisfaction and member satisfaction and each measure was assigned a weighting. Bonus funding can exceed target if the goals are exceeded, but total funding is generally capped at 150% of target. The 2004 bonus pool was funded at 95% of target.
Each executive officer was eligible to receive a target bonus from the pool determined on the basis of the individuals performance against goals established at the beginning of the year. Performance against the target measures for 2004 of both the Company and all executive officers was reviewed and approved by the Committee and the Board prior to payout.