AIP - 2027
Just asking out of curiosity and trying to understand how the timeline works. Not trying to complain or start anything, so please be kind 🙂
I was reading through the AIP email from May 2026 and wanted to make sure I'm understanding it correctly.
The way I read it:
- AIP ends in 2026.
- The final AIP payout will be in March 2027.
- A portion of the AIP target will be rolled into base pay to compensate for ending the program.
- However, the new base pay doesn't take effect until January 2028.
This is where I'm confused. If the March 2027 AIP payout is for the 2026 performance year, wouldn't that mean we're no longer earning an AIP during 2027?
If so, why wouldn't the base-pay adjustment take effect sometime in 2027 instead of January 2028?
Am I misunderstanding how the AIP payout works, or does this effectively mean there's a one-year gap between the final AIP performance year and when the base-pay adjustment kicks in?