2008 STI Plan CEO John Heyman
NOTE: All figures below are in US dollars unless otherwise indicated. For individuals based outside the U.S. and paid in local
currency, bonus potential is based on percentage of base salary in local currency.
Objectives & Principles
This document summarizes the Short Term Incentive (“STI”) Plan for individuals in the CEO role. The objectives of this STI Plan
are aligned with overall company compensation program objectives:
Some key principles of our STI plan include:
If you have questions or feedback on our compensation program or this STI Plan, please contact the Compensation Manager.
January 1 – December 31, 2008. All STI plans are reviewed annually during Q4 for the upcoming fiscal year, to ensure that these
compensation plans are aligned with the company’s financial and operational objectives.
Target STI potential for individuals in this role is 100% of base salary.
Focus of Role
STI Plan Structure
Example: Assume annual STI potential is $400,000, Op Income Budget is $30 million, Op Income Target is $33 million,
and Actual Op Income $32 million.
Definitions and Calculations
Provide total potential compensation equal to or greater than market for the role
Incent healthy cross-functional behavior and reward results that are aligned with company business objectives and our
Keep the plan simple
Self funding – STI payout is funded via financial metrics (team profitability), based on the 12-month financial plan.
Annual payout except for sales-oriented roles. With base salary ranges at market, STI reinforces the pay-for-performance
Payout triggered on financial milestones aligned with Budget and Target (see Section VI for definitions of Budget and
Target). Partial payout of STI occurs at Budget with linear payout of remaining STI up to Target.
ROI to shareholders – our