2013 Executive Cash Incentive Bonus Plan for Constant Contact, Inc. Executive Officers
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Summary
This agreement outlines the 2013 Executive Cash Incentive Bonus Plan for executive officers of Constant Contact, Inc. It details how bonuses are determined based on quarterly revenue growth, business unit revenue growth, adjusted EBITDA margin, and individual performance objectives. The Compensation Committee sets targets and payout ranges, with specific weightings and payout schedules for different executive roles. Bonus payments are subject to a clawback policy, ensuring compliance with company standards. The plan aims to incentivize executives to meet financial and operational goals throughout the year.
EX-10.72 8 d442306dex1072.htm EX-10.72 EX-10.72
 2013 Executive Cash Incentive Bonus Plan Exhibit 10.72 |
 Bonus Plan Structure – Table of Contents Metrics Annual Weighting of metrics Target Payouts by quarter Target setting Target leverage and ranges Miscellaneous CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 2 |
 Metrics QRG Defined as quarterly revenue growth. BU QRG Defined as business unit quarterly revenue growth. Adjusted EBITDA Margin Adjusted EBITDA is calculated by taking GAAP net income, adding depreciation and amortization, stock-based compensation, adjusting for taxes and contingent consideration adjustment (if any), then subtracting interest and other income, net. Adjusted EBITDA margin is equal to adjusted EBITDA divided by revenue. Individual Performance Objectives (MBOs) MBOs will be focused on identifiable and measurable objectives related to specific areas of responsibility (measured semi-annually). CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 3 |
 Executive Officers (except Business Unit VPs) EventSpot VP and SinglePlatform VP SaveLocal VP QRG 50% 25% 40% BU QRG -- 25% -- Adjusted EBITDA Margin 15% 15% 15% MBOs 35% 35% 45% 100% 100% 100% Annual Weighting of Metrics CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 4 |
 Target Payouts by Quarter (Executive Officers, except EventSpot VP, SaveLocal VP and SinglePlatform VP) Q1 Q2 Q3 Q4 Total QRG 12.5% 12.5% 12.5% 12.5% 50% Adjusted EBITDA Margin 3.75% 3.75% 3.75% 3.75% 15% MBOs -- 17.5% -- 17.5% 35% 16.25% 33.75% 16.25% 33.75% 100% CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 5 |
 Target Payouts by Quarter (EventSpot VP and SinglePlatform VP) Q1 Q2 Q3 Q4 Total QRG 6.25% 6.25% 6.25% 6.25% 25% BU QRG 6.25% 6.25% 6.25% 6.25% 25% Adjusted EBITDA Margin 3.75% 3.75% 3.75% 3.75% 15% MBOs -- 17.5% -- 17.5% 35% 16.25% 33.75% 16.25% 33.75% 100% CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 6 |
 Target Payouts by Quarter (SaveLocal VP) Q1 Q2 Q3 Q4 Total QRG 10% 10% 10% 10% 40% Adjusted EBITDA Margin 3.75% 3.75% 3.75% 3.75% 15% MBOs -- 22.5% -- 22.5% 45% 13.75% 36.25% 13.75% 36.25% 100% CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 7 |
 Target Setting QRG Set by Compensation Committee at beginning of year and mid-year based on budget approved by the Board of Directors. BU QRG Set by Compensation Committee at beginning of year and mid-year based on budget approved by the Board of Directors. Adjusted EBITDA Margin Set by Compensation Committee at beginning of year and mid-year based on budget approved by the Board of Directors. Individual MBOs Set by Compensation Committee at beginning of year for CEO. Set by CEO at beginning of year for each Vice President and reviewed by Compensation Committee. CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 8 |
 Target Leverage and Ranges QRG Minimum target QRG threshold - 80%; payout at 50% of target. Maximum target QRG threshold - 140%; payout at 300% of target See chart on next page. Adjusted EBITDA Margin Minimum target Adjusted EBITDA Margin threshold – (target less one percentage point); payout at 95% of target. Maximum target Adjusted EBITDA Margin threshold – (target plus one percentage point); payout at 105% of target. See chart on next page. MBOs Minimum threshold established for each executive officer. Maximum payment established for each executive officer (capped at 200%). Payout equal to weighted % attainment of objective. CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 9 |
 Achievement <80% 80% 85% 90% 95% 100% 105% 110% 115% 120% 125% 130% 135% 140%+ Payout Percentage 1 0% 50% 63% 75% 88% 100% 125% 150% 175% 200% 225% 250% 275% 300% Achievement < Target EBITDA – 1% Point Target EBITDA - 1% Point Target EBITDA % Target EBITDA + 1% Point > Target EBITDA + 1% Point (and above) Payout Percentage 1 0% 95% 100% 105% 105% QRG and BU QRG Leverage Model Adjusted EBITDA Margin Model 1 Linear interpolation between data points 1 Linear interpolation between data points Target Leverage and Ranges CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 10 |
 Miscellaneous All payments under the 2013 Executive Cash Incentive Bonus Plan are subject to the Clawback Policy adopted by the Compensation Committee on December 6, 2013. CONFIDENTIAL Copyright © 2013 Constant Contact Inc. 11 |
