I would have preferred a different decision not to use any reserve for 2005, then use it all, if possible, in 2006 to make this an even better year. But it seems management wanted to hit 101+ achievement for 2005 by using this reserve retroactively in the 4Q05, based on the 2006 LG deal, resulting in management raking in another $3.4M under the LTCP.
Also, and more importantly, IMO such reserves should NOT count in any way towards "achievement" for compensation purposes.