What is the definition of eligible earnings ?

creating a hypothetical company and preparing a Plan Document (two pages suggested) for an Company-wide Annual Incentive Plan. The reading on How to Design an Annual Incentive Plan will guide you through the key points for this assignment.You will need to determine and document the following:Eligibility and targeted annual incentive opportunityTwo or more performance measures and percent weightDesired performance periodHow the plan will be fundedDesired payouts at threshold (minimum), target, exceeds target, and maximum What is the definition of eligible earnings How payouts are calculatedWhat is the timing of payoutsThe required approval prior to implementation of the payouts under the planWhen designing a plan document for a company-wide plan, it is important to ensure the document carefully addresses the plan rules and eliminates the chance for over- and under-payments as defined by the plan. Avoid vagueness and keep the plan rules clear and concise.