Under a so-called "2020 Dream Incentive Plan," which InBev has previously disclosed in U.S. regulatory filings, about 65 of the brewer's senior management can share in a bonus if its "ambitious growth target" of reaching at least $100 billion in annual revenue is reached.
Is this a case where the incentives set up are being gamed?
It would be pretty easy to add a clause "and mergers don't count!"
Also, is that practical without mergers? Wikipedia indicates their revenue as of the 2009 merger with Budwiser at $36.4 billion, and the latest results for 2015 at $43.6 billion. Organic growth doesn't strike me as all that likely to achieve that 2020 plan.
Comments
Is this a case where the incentives set up are being gamed?
It would be pretty easy to add a clause "and mergers don't count!"
Also, is that practical without mergers? Wikipedia indicates their revenue as of the 2009 merger with Budwiser at $36.4 billion, and the latest results for 2015 at $43.6 billion. Organic growth doesn't strike me as all that likely to achieve that 2020 plan.