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Distributions should be on a year-to-date (YTD) calculation, paid quarterly. So the company doesn't take all of the risk, pay two-thirds of the YTD bonus at the end of the first quarter, 75 percent at the end of the second, 85 percent at the end of the third and the remainder at the end of the year. This reserve within the company will avoid early payout for exceptional results, without sufficient catchup period if these results don't continue.
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- JOHN M. COLLARD Would
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