The short-term incentive system – which applies to the CEOs of ERG and subsidiaries, managers and a select number of supervi sors, is based on some fundamental ob jectives, which are summarized as follows: introduce a single incentive system that encompasses both corporate and individual performance; define a market-related benchmark bonus for each system participant; measure individual performance ac cording to a consistent system of not only economic/financial goals and in dicators; evaluate corporate performance in terms of value created/destroyed; define bonus-fluctuation caps and floors.