That's a rough outline for UTC's set of programs....and I am NOT an expert. The targets/values are set as the financial and business plans are established for the following year - it is a fluid process until the plan is locked in - usually about now each year. Yes there have been bad years with no bonus payout and good years above target. Things differ among business units but often non financial targets involve Corp initiatives such as ACE progress, safety, or environmental issues.
This is not unusual; many companies do similar things.
No bonuses? Maybe you meant that wages will be frozen next year for the average Joe? The company will still throw Boeing a Christmas party like they do every year and take 50 or so people up there to celebrate. Bonuses will be paid a top level
I don't understand why there would be no bonuses this year. UTC is on target to meet its earnings forecast and, I believe, will report record earnings for the year.
Now next year, that's a different story. Even then UTC will earn money, albeit less than if we were not in recession. Thus, `09 bonues will be adjusted to reflect the reality of `09, whatever that turns out to be.