Cascade Microtech, Inc. 2007 Executive Compensation Plan for Six-Month Period Ending December 31, 2007

Summary

Cascade Microtech, Inc. established a compensation plan for its top executives, including the CEO, CFO, and two Vice Presidents, for the last six months of 2007. Bonuses are based on achieving specific financial and individual performance targets, such as net income, operating income, and divisional revenues. Bonus payouts are determined quarterly and vary depending on the level of target achievement, with higher payouts for exceeding targets and none for falling below minimum thresholds. Individual objectives are set each quarter, and the CEO determines completion status.

EX-10.1 2 dex101.htm EXECUTIVE COMPENSATION PLAN Executive Compensation Plan

Exhibit 10.1

Cascade Microtech, Inc.

2007 Executive Compensation Plan

for the Six-Month Period Ending December 31, 2007

Participants


Eric Strid		Chief Executive Officer and President
Steven Sipowicz		Chief Financial Officer, Vice President of Finance, Treasurer and Corporate Secretary
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 quarterly.

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 80%								Individual Metrics 20%
	Net income		Operating income		Engineering products revenue		Production products revenue		Quarterly Objectives
Chief Executive Officer	30	%	30	%	10	%	10	%	20	%
Chief Financial Officer	30	%	30	%	10	%	10	%	20	%
VP Engineering Products	—		60	%	20	%	—		20	%
VP Production Products	—		60	%	—		20	%	20	%

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 for operating income and net income beginning 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 minimum dollar level

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

The payout for objectives will be proportional to the fraction of objectives completed. The CEO is the final arbiter of such completion status. A set of objectives is formulated by a consensus of the management team for each executive at the beginning of each quarter.