employees will receive a bigger bonus this year under a key incentive program after a dip. Daniel Wiener
reports in the July edition of the Independent Adviser for Vanguard Investors
that the 2009 "Partnership Plan" divided rate rose to $100.95, up from about $90 for 2008. (Under the structure of the plan, the 2009 dividends will be paid out starting this year, in fifths, over the course of five years.)
According to Wiener, the plan is designed particularly for motivating Vanguard's senior management, whom he claims receive the biggest chunk of their plan via the plan -- he estimates that Jack Brennan
would earn between $6.8 million and $7.5 million this year, thanks largely to the plan, if he were still chairman. In contrast, Wiener reports that younger employees cap out receiving only 10 percent of their pay via the plan, and older employees cap out at 30.)
The plan's dividend peaked at $101.60 for 2007.
Neil Anderson, Managing Editor
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