F5 Networks, Inc. Incentive Compensation Plan for Executive Officers

Summary

F5 Networks, Inc. has created an incentive compensation plan for its executive officers. Under this plan, executives can earn bonuses based on a percentage of their base salary, depending on how well the company meets specific quarterly revenue and EBITDA goals set by the Board of Directors. Bonuses are paid only if at least 80% of the targets are met, with higher payouts for exceeding targets. Payments are made quarterly, and both goals must be fully met for bonuses above the target amount.

EX-10.24 4 v03807exv10w24.txt EXHIBIT 10.24 EXHIBIT 10.24 F5 NETWORKS, INC. INCENTIVE COMPENSATION PLAN FOR EXECUTIVE OFFICERS F5 Networks has established an incentive compensation plan for executive officers. The plan provides for targeted bonuses set at a percentage of base salary and payable subject to achievement of performance metrics. The percentage of base salary may vary among the executive officers and may be increased above the target if the performance metrics are exceeded. The performance metrics are as follows. 50% of the incentive compensation is based on successfully achieving a quarterly revenue goal. 50% is based on achieving a quarterly EBITDA goal. The quarterly revenue and EBITDA goals are set periodically by the Board of Directors. PAYMENT TERMS The incentive compensation is paid linearly above 80% of targeted goals. (i.e.: 80% of the possible incentive compensation will be paid for revenues at 80% of goal, 90% is paid for revenues at 90% of goal.) Both goals must hit 100% for the increase above target to apply. No incentive compensation will be paid for results less than 80% of goals. If earned, payments will be made quarterly.