2006 STI Plan – Chairmen/CTO, Alon Goren
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.
IX. Objectives & Principles
This document summarizes the Short Term Incentive (“STI”) Plan for individuals in the Chairman/CTO 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
X. Effective Date
January 1 – December 31, 2006. 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.
XI. Target STI
Target STI potential for individuals in this role is $165,000, with opportunity to earn upside for above Target performance.
XII. Focus of Role
XIII. STI Plan Structure
Example 1: Assume annual STI potential is $165,000, Op Income Budget is $10 million, Op Income Target is $15
million, and Actual Op Income $13 million. Assume also that cumulative quarterly Budget for Op Income is
achieved 3 of the 4 quarters.
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
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-
Payout triggered on financial milestones aligned with Budget and Target (see