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  "documentTitle": "Mettler-Toledo International, Inc. (MTD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-07-24 00:00:00",
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  "notes": "The slide uses a quote from the company to highlight the contradiction between 'objective financial criteria' and the actual metrics used.",
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      "kind": "callout",
      "text": "Put another way, management can use corporate funds to buy its way toward a cash bonus!",
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      "kind": "metric",
      "text": "Adjusted Non-GAAP Earnings Per Share: $20.20",
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      "kind": "paragraph",
      "text": "Meanwhile, “Net Cash Flow” is always being re-defined in a bizarre way that is “before tax payments and voluntary pension payments” and “excludes deviations for facility expansion and acquisition capex vs target”. Of course, Mettler doesn’t disclose what is voluntary/involuntary for its pension payments, or provide capex targets to evaluate deviations!",
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      "text": "Executives are compensated on aggressively defined financial metrics. For example, the Adjusted Non-GAAP EPS removes restructuring charges, which have been occurring for more than a decade. In addition, Adjusted Non-GAAP EPS does not adjust for management's excessive use of cash flow to repurchase stock. As we previously illustrated, 84% of operating cash flow has gone towards share repurchases, which allows management to artificially inflate EPS while paying itself bonuses along the way. Put another way, management can use corporate funds to buy its way toward a cash bonus!",
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      "kind": "quote",
      "text": "We link pay with performance through our cash incentive plan, called POBS Plus. The purpose of the incentive plan is to provide an incentive to key employees of the company to reward them for driving the success of the company as measured based on objective financial criteria",
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      "text": "We link pay with performance through our cash incentive plan, called POBS Plus. The purpose of the incentive plan is to provide an incentive to key employees of the company to reward them for driving the success of the company as measured based on objective financial criteria — Mettler-Toledo 2019 Proxy Statement",
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      "kind": "source-note",
      "text": "(1) Excludes a one-time gain... (2) Represents cash flow from operations... Source: MTD 2019 proxy statement",
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      "text": "2018 Threshold, Target, Maximum, and Actual Performance table",
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      "kind": "title",
      "text": "Cryptic Bonus Calculations",
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