Jump to content
Sign in to follow this  

Vyaderm Pharmaceuticals

Recommended Posts


Vyaderm Pharmaceuticals is considering introducing economic value added as its prime instrument for bonus and incentive decision-making criteria. For the purpose of NOPAT, four pertinent adjustments are to be made in operating earnings. However, due to these adjustments, the management is unsure about the bonus for the years 2000 and 2001. After the adjustments, the calculations show that the EVA of the North American dermatology division for the year 2000 comes out to be $116,081,929. The bonus for the same year is $395,994. The EVA performance is negative for the year 2001; therefore, no bonus is paid in that year. At the current moment, the company should restrain from EVA as a bonus calculation criterion.

Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Sign in to follow this