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  "documentTitle": "Hill-Rom Holdings, Inc. (HRC)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2019-10-29 00:00:00",
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  "notes": "The slide uses a table to highlight a specific instance where a revenue target was missed but the full bonus was still paid, suggesting undue discretion.",
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      "kind": "callout",
      "text": "Lack of Transparency: Management does not provide sufficient information for investors to reconcile differences between reported figures and figures used to determine performance bonuses",
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      "text": "Full Revenue Bonus Despite Miss?: Undue Discretion in Bonus Determination. Why did the Compensation Committee decide, out of thin air, that management should receive its full 50% revenue bonus despite missing on STIC Revenue?",
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      "text": "Why did the Compensation Committee decide, out of thin air, that management should receive its full 50% revenue bonus despite missing on STIC Revenue?",
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      "text": "Management's short-term performance bonuses are determined by a mix of revenue (50%), Adjusted EPS (25%), and free cash flow (25%). While the Company claims that the revenue, EPS, and FCF figures used to determine executive compensation are adjusted for acquisitions and divestitures, its proxy filings provide no reconciliation between the figures reported to investors and those used to measure management performance, effectively making it impossible for investors to audit the metrics used to determine executive performance bonuses. Furthermore, though these figures are adjusted for acquisitions, divestitures and costs associated with “special items” (e.g. asset write-downs) are also added back to adjusted EPS and FCF, removing any disincentive that management would otherwise bear for pursuing acquisitions which it is later forced to exit.",
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      "text": "Fiscal Year 2018 STIC Plan Targets and Achievement Calculation",
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      "text": "Compensation Targets Are Not Transparent And Fail To Disincentivize Poor M&A",
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