Performance Multiplier

The performance multiplier is the factor applied to your target amount of PSUs to determine the actual number of shares you receive. It may be driven by a single metric or by a formula that combines multiple metrics into one blended result. It is usually expressed as a percentage of target, such as 0%, 50%, 100%, or 200%. That percentage is set by where actual performance landed relative to the Threshold / Target / Maximum Payout levels, though it isn't always the final word. Many plans reserve Negative Discretion, the right for a compensation committee to reduce a calculated multiplier after the fact.