Theravance, Inc. Cash Bonus Program Description
Theravance, Inc. has established a Cash Bonus Program for all employees, which provides financial incentives based on performance against specific individual, departmental, and corporate goals. Each year, the Compensation Committee evaluates company performance to determine the size of the bonus pool, which is then distributed among departments. Bonus percentages are set according to employee grade, with higher percentages for senior roles. Managers allocate bonuses within these guidelines, and any exceptions require CEO approval.
Exhibit 10.32
Theravance, Inc.
Cash Bonus Program
Theravance’s Cash Bonus Program is based on performance measured against specific goals and objectives. The program is designed to provide incentives for employees to meet and exceed individual, department and corporate goals as well as encourage teamwork among the disciplines within the company and reward those who significantly impact corporate results. All employees are eligible to participate in the Cash Bonus Program.
Each year the Compensation Committee assesses the Company’s performance measured against the corporate goals. Depending on the Committee’s conclusion, a bonus pool is established and is allocated among the departments pro rata. Bonus percentage guidelines are then developed by Senior Management. In general, however, the maximum bonus amounts as a percentage of base salary are as follows:
| Grades 1-6 |
| Determined Annually |
|
| Grades 7-9 |
| 10 | % |
| Grade 10 |
| 15 | % |
| Grades 11-12 |
| 20 | % |
| Vice President |
| 25 | % |
| Senior Vice President |
| 30 | % |
| Executive Vice President |
| 40 | % |
| Chief Executive Officer |
| 50 | % |
Managers have the discretion of allocating bonuses based on the highest percentage designated and total available bonus pool. Any exceptions require CEO approval.
