2012 Senior Management Bonus Compensation Plan Ratified by Board on May 3, 2012
This agreement outlines the 2012 bonus compensation plan for six senior executives at CafePress, including the CEO, CMO, CFO, two Senior Vice Presidents, and the SVP of Business Development. Bonuses are tied to achieving specific revenue and operating profit targets, with payouts based on a percentage of each executive's base salary. Payments are split between the first and second halves of the year, and the amount depends on company and business line performance. The Compensation Committee determines final awards based on these criteria.
Exhibit 10.6
REVISED 2012 BONUS COMPENSATION PLAN FOR SENIOR MANAGEMENT
RATIFIED BY THE BOARD MAY 3, 2012
| • | Eligible Executives (6): CEO, CMO, CFO, SVP-GMs (2) and SVP-Business Development. |
| • | Bonus pool is funded by achievement of payout targets and maximum achievement, with pro-rata payment for achievement with a floor of 95% of revenue targets and 80% of operating profit targets as noted in tables below. |
| • | Bonus target payouts based on a percentage of base salary. |
| • | Bonus are weighted 30% for the first half of the year and paid at close of audited review following Q2 and are weighted 70% for the second half of the year and paid at the close of audited financials following Q4. |
| • | Payout to eligible executives will be based 60% on consolidated revenue and 40% on non-GAAP income from operations for all but SVPs where it will be based 60% on net revenue for the relevant CafePress business lines and 40% on non-GAAP income from operations for that same business line. The SVP-Business Development had additional MBOs applied to his targets. |
The Objective Targets against which bonus compensation award will be determined by the Compensation Committee of the Board of Directors.
| CEO: | 60% target, 90% max | |||
| CFO: | 50% target, 75% max | |||
| CMO: | 40% target, 60% max | |||
| SVP-GM: | 25% target, 35% max | |||
| SVP-Business Development: | 25% target, 35% max |
