CascadeMicrotech, Inc. 2007Executive Compensation Plan for the Six-Month Period Ending June 30, 2007
Exhibit 10.2
Cascade Microtech, Inc.
2007 Executive Compensation Plan
for the Six-Month Period Ending June 30, 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 Probe Division |
| Bruce McFadden | Vice President, Corporate Development |
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:
|
| Net income |
| Operating |
| Engineering |
| Production |
| Quarterly |
| |
| Chief Executive Officer |
| 30 | % | 30 | % | 10 | % | 10 | % | 20 | % |
| Chief Financial Officer |
| 30 | % | 30 | % | 10 | % | 10 | % | 20 | % |
| VP Engineering Products |
| — |
| 60 | % | 20 | % | — |
| 20 | % |
| VP Production Probe |
| — |
| 60 | % | — |
| 20 | % | 20 | % |
| VP Corporate Development |
| — |
| 60 | % | 10 | % | 10 | % | 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 from 50% payout for operating income and net income at 50% of target to 100% payout at 100% of target 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 at 150% of target
· 200% payout for product line revenues above 150% of target
· 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.
