Cardiovascular Systems, Inc. 2008 Executive Officer Annual Cash Incentive Compensation Summary

Summary

Cardiovascular Systems, Inc. established an annual cash incentive plan for its executive officers for calendar year 2008. Under this plan, executives are eligible for bonuses ranging from 20% to 50% of their base salary, with actual payouts depending on the company's financial performance. Bonuses can exceed 150% of the target if revenue goals are significantly surpassed, with no set maximum. The plan aims to reward executives for meeting or exceeding revenue and gross margin targets. Some executives are also eligible for additional sales commissions. Adjustments are made for partial-year service.

EX-10.23 4 c21812a5exv10w23.htm SUMMARY OF CALENDAR 2008 EXECUTIVE OFFICER ANNUAL CASH INCENTIVE COMPENSATION exv10w23

Exhibit 10.23

CARDIOVASCULAR SYSTEMS, INC.
SUMMARY OF CALENDAR 2008
EXECUTIVE OFFICER ANNUAL CASH INCENTIVE COMPENSATION

For calendar 2008, our executive officers are eligible to receive annual cash incentive compensation with target bonus levels ranging from 20% to 50% of their yearly base salary. Participants are eligible to earn 50% to 150% of their target bonus amount depending upon the company’s performance relative to the bonus plan criteria; however, in the event of extraordinary revenue performance above the goals set by the board, all of the named executive officers would receive incentive payments greater than 150% of their targets based upon a formula established by the board, with no maximum payout set under the plan. The annual cash incentive plan is designed to reward the executive officers for achieving and surpassing revenue and gross margin financial goals set by the compensation committee and board of directors.


Name	Target % of Base Salary			Threshold Bonus		Target Bonus			Maximum Bonus(1)
David L. Martin		50	%	$	98,750	$	197,500	$	296,250
President, Chief Executive Officer and Director
Laurence L. Betterley(2)		40	%	$	45,000	$	90,000	$	135,000
Chief Financial Officer
James E. Flaherty		40	%	$	43,600	$	87,200	$	130,800
Chief Administrative Officer
Robert J. Thatcher		40	%	$	43,600	$	87,200	$	130,800
Executive Vice President
Paul Koehn		40	%	$	35,310	$	70,620	$	105,930
Vice President of Manufacturing
Brian Doughty		20	%	$	19,260	$	38,520	$	57,780
Vice President of Marketing
Paul Tyska(3)		40	%	$	40,000	$	80,000	$	120,000
Vice President of Business Development
Michael J. Kallok, Ph.D.		40	%	$	51,000	$	102,000	$	153,000
Chief Scientific Officer and Director
John Borrell(4)		40	%	$	40,000	$	80,000	$	120,000
Vice President of Sales



(1)		As described above, participants may earn greater than 150% of their target bonus amount in the event of extraordinary revenue performance, with no maximum payout set under the plan.

(2)		Mr. Betterley’s actual bonus will be adjusted proportionally to reflect his start date of April 14, 2008.

(3)		Mr. Tyska will also be paid sales commissions of 0.333% of all sales on a monthly basis.

(4)		Mr. Borrell will also be paid sales commissions of 0.666% of all sales on a monthly basis.