Reward and Recognition Policy

INTRODUCTION

The Reward and Recognition Policy provides the guidelines to how employees and others will be compensated for their implemented ideas.

Purpose
The purpose of this Policy is to:
  1. Educate employees and external entrepreneurs/ inventors on the type of compensation that is available to them
  2. Help in setting the frame-work for potential compensation in advance of lodging ideas with the Innovation Centre
  3. Prompt questions from employees and others to further qualify potential compensation
  4. Assist Kavanagh in preparing the business case for ideas
  5. Assist Kavanagh to calculate payments to internal and external parties in a fair and consistent manner
GENERAL GUIDELINES
Cost Saving

To compensate for an idea to save Kavanagh operating costs the following guidelines apply:

  • We will pay up to 30% of the savings, based on an annual forecast
  • Compensation will be paid in advance
  • Compensation is paid for 1-5 years, negotiable for each implemented idea
  • The forecast will be reviewed annually for accuracy
New Products, Services or Process with No I.P. Ownership

Compensation for new products, services and/or process where there is no Intellectual Property involved is calculated as follows:

  • As a negotiated percentage of net profit
  • Based on 12 monthly forecasts
  • Paid in advance
  • 1-5 years (negotiable)
New Products, Services or Process that Involve partial or full I.P. Ownership by the employee or entrepreneur

Compensation for new products, services and/or process where there is part or full Intellectual Property ownership is calculated as follows:

  • An agreement will be reached on the level of I.P. ownership
  • Royalty payments may be involved
  • Shares in either the existing company, or a new entity may apply
  • A negotiated % of net profit

In all of the above cased, the end result may turn out to any one, or a combination of the above factors.

The Rules
  • The idea must be submitted via the Application Procedures outlined on the site or in other printed guidelines
  • The Reward and Remuneration Policy is executed with cross reference to the Intellectual Property Policy