Cascade Microtech, Inc. 2008 Executive Compensation Plan for Six-Month Period Ending June 30, 2008
Cascade Microtech, Inc. established a compensation plan for its top executives, including the CEO, CFO, CTO, and two Vice Presidents, covering the six months ending June 30, 2008. Bonuses are based on achieving specific financial targets, such as net income, operating income, and divisional revenues. Each executive's bonus is calculated as a percentage of their base salary, with payouts varying depending on the level of target achievement. The plan sets clear thresholds and caps for payouts, rewarding higher performance and providing no bonus if minimum targets are not met.
Exhibit 10.1
Cascade Microtech, Inc.
2008 Executive Compensation Plan
for the Six-Month Period Ending June 30, 2008
Participants
| Geoff Wild | Chief Executive Officer and President | |
| Steven Sipowicz | Chief Financial Officer, Vice President of Finance, Treasurer and Corporate Secretary | |
| Eric Strid | Chief Technology Officer | |
| John Pence | Vice President and General Manager, Engineering Products Division | |
| Willis Damkroger | Vice President and General Manager, Production Products Division |
Performance Criteria
Bonuses for these participants are calculated on a percentage of their base salary based on attainment of planned levels of net income, operating income and divisional revenue. Determinations as to whether the performance targets have been met are made on a six-month basis.
This table lists the portion of the total bonus payout that is based on the different performance measures, for each executive:
| Corporate and Division Metrics | ||||||||||||
| Net income | Operating income | Engineering products revenue | Production products revenue | |||||||||
| Chief Executive Officer | 30 | % | 30 | % | 20 | % | 20 | % | ||||
| Chief Financial Officer | 30 | % | 30 | % | 20 | % | 20 | % | ||||
| Chief Technology Officer | — | 60 | % | 20 | % | 20 | % | |||||
| VP Engineering Products | — | 60 | % | 40 | % | — | ||||||
| VP Production Products | — | 60 | % | — | 40 | % | ||||||
The payout for the operating income and net income portion will be:
| • | 100% payout for achievement of 100% of the planned consolidated operating income and net income (“target”) |
| • | Linear from 50% payout for operating income and net income at minimum dollar level to 100% payout at 100% of target to 200% payout cap at maximum dollar level and higher |
| • | Zero for operating income and net income below 50% of target |
The payout for the product line revenue portion will be:
| • | 100% payout for achievement of 100% of the planned respective consolidated product line revenue (“target”) |
| • | Linear from 0% payout for product line revenues at 50% of target to 200% payout cap at 150% of target and higher |
| • | Zero for product line revenues below 50% of target |
