oklahoma pipeline services ops is a division of ardmore petroleum prior to the curre 574452

Oklahoma Pipeline Services (OPS) is a division of Ardmore Petroleum. Prior to the current year, the manager of OPS and corporate managers agreed to a target ROI for OPS of 13 percent. Subsequently, an incentive pay contract was executed between Gerome Green, the manager of OPS, and corporate management. The contract stipulated that in the event OPS achieved an ROI of 13 percent, certain bonus payments would be made to Mr. Green. Any achieved ROI below 13 percent would result in no bonus payments. At year end, the measured ROI of OPS was 5 percent Mr. Green has approached corporate management with the following information as the basis of arguing that he deserves a bonus payment for the year, despite the fact that his division failed to meet the stipulated 13 percent ROI. ROI of top competitor for the year 2.7% Average ROI in the industry for the year _2.9% You have been selected to be an arbitrator between Mr. Green and Ardmore Petroleum’s top managers. Prepare a brief oral report in which you interpret the meaning of the additional information provided by Mr. Green.