2011 Senior Management Cash Bonus Compensation Plan Ratified by Board
This agreement outlines the 2011 cash bonus plan for six senior executives, including the CEO, CPO, CFO, two Senior Vice Presidents/General Managers, and the SVP of Business Development. Bonuses are tied to company performance, specifically revenue and operating profit targets, and are paid out based on audited financial results for each half of the year. The plan specifies target and maximum bonus percentages of base salary for each role, with payouts determined by the Compensation Committee based on achievement of set financial objectives.
Exhibit 10.6
REVISED 2011 BONUS COMPENSATION PLAN FOR SENIOR MANAGEMENT
RATIFIED BY THE BOARD MAY 4, 2011
| • | Eligible Executives (6): CEO, CPO, 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 40% for the first half of the year and paid at close of audited review following Q2 and are weighted 60% 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 SVP-Business Development 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 Objective Targets against which bonus compensation award will be determined by the Compensation Committee of the Board of Directors.
CEO, CPO, CFO: 37.5% target payout, 70% maximum payout
SVP-GMs: 30% target payout, 40% maximum payout
SVP-Business Development: 25% target payout, 35% maximum
