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To qualify as incentive pay,a performance-based compensation program:
Synergy Value
The additional value created by combining two companies, expected to be greater than the sum of their parts.
Equity-Financed
Funding company operations, projects, or purchases through the issuance of stock, thereby raising capital without incurring debt.
NPV
Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period.
Incremental Value
The additional or increased value generated by a new investment, project, or action compared to the value without undertaking the activity.
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