BroadVision FY 2006 Employee Profit-Sharing Plan Framework

Contract Categories: Human Resources › Profit Sharing Plans
Summary

BroadVision's 2006 Employee Profit-Sharing Plan aims to retain employees by sharing company profits if certain financial thresholds are met. The plan covers full-time and qualifying part-time employees, with eligibility based on employment status and performance each quarter. Profit-sharing payouts are determined quarterly, with amounts based on company profitability and individual base salaries. Commissioned employees receive payouts first, and part-time or on-leave staff receive pro-rated amounts. Payments are made after quarterly earnings are announced, and any unpaid or forfeited amounts revert to the company.

Read More Arrow
EX-10.1 2 exhibit1.htm EX-10.1 EX-10.1

BROADVISION
Framework for FY 2006
Employee Profit-Sharing Plan (EPSP)

     
Plan objective:
  The program is designed to retain our talented employees by sharing company
profitability once a certain threshold has been met and maintained on a sustainable
basis. It is also intended to underscore the commitment to turning around our
company by aligning and rewarding behavior that leads to achieving a profitable
business model and other company objectives.
 
    
Plan duration:
  January 3 ~ December 31 2006
 
    
Plan details:
  1. EPSP award pool allocation methodology approved by BOD Compensation
Committee at the beginning of the year and implemented by management on a quarterly
basis.
2. Eligible persons are active, full-time or more than fifty percent (>50%)
part-time employees who maintain a satisfactory standing during the entirety of
each quarter and who remain an employee at the time of each quarterly payout. The
company reserves the right to make certain exclusions or exceptions regarding
eligibility on a case-by-case basis.
3. Part-time or on-leave employees are eligible for a pro-rated amount based on the
number of actual regular hours worked.
4. Commissioned employees (those with a sales commissions plan) have a portion of
their variable compensation tied to company performance, funded under the same EPSP
award pool, with payouts ahead of non-commissioned employees.
5. Payouts to non-commissioned employees are targeted at a certain percentage of
each individual’s base salary, set and/or adjusted with management discretion.
6. Payment is made on the first regularly scheduled pay date after the announcement
of quarterly earnings, or on such other date as deemed appropriate by management.
7. All amounts earned but not paid under the plan (reductions from any “merit
factor”, resignations with positive profit-sharing accruals, etc) are eliminated,
going back into company earnings.
8. Award pool allocation will be determined as follows:
 
   EBITDA+ (gross operating margin) Pool allocation (%of EDITDA+)
 
    
 
   <10% 0%
11~20% 11~20% (percent for percent)
>20% 20%