Iomega 2003 Bonus Plan Summary and Metrics
This agreement outlines the 2003 Bonus Plan for Iomega employees, as approved by the Compensation Committee. The plan sets out eligibility, performance metrics, and payout conditions for executive and director bonuses. Bonuses are only paid if the company is profitable for the year. Payouts are based on achieving targets for year-end cash balance and earnings per share, with specific percentages and caps on maximum payouts. The plan also details changes from the previous year, including a shift to a 12-month period and updated performance metrics.
Exhibit 10.11
Iomega Compensation Committee Meeting
Exhibit A
May 20, 2003
Summary of 2003 IBP Plan Changes and Metrics
Features remaining from 2002 IBP Plan
| • | Company must be profitable as a whole in the plan period for any bonus or profit sharing to be paid out |
| • | Individuals’ targets not changing |
| • | Maximum payout still capped at 200% |
Features changing in 2003 IBP plan
| Feature | 2002 Plan | 2003 Plan | ||
| Plan Period | Two six-month periods | 12 month fiscal year | ||
| Operating Plan for Metrics | Board approved plan | Internal management stretch plan | ||
| Plan Metrics Based on | Revenue, PBIT, Breakthrough Objectives | Cash Balance, EPS, BOD Discretion | ||
| First payout occurs | 80% payout upon achieving 80% of target | 90% payout upon achieving 100% of target | ||
| 100% payout occurs | Upon achieving 100% of target | Must exceed target (level varies per metric) | ||
| Accelerators | Same slopes & accelerators per metric | Differing slopes and accelerators per metric |
2003 IBP Participation and Metric Weighting
| Participants | |||||||||
| Heid, Zwarenstein, Kampfer, Aguirre | All other Executives and VP’s | Directors | |||||||
| 2003 IBP Metric Proposal | |||||||||
| BOD Discretion | 100 | % | |||||||
| Year End Cash Balance | 70 | % | 70 | % | |||||
| Earnings Per Share | 30 | % | 30 | % | |||||
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2003 IBP Metric – Year End Cash Balance
| Year End Cash Balance – Weighting: 70% of IBP | ||
| % of Cash Goal Achieved | Bonus Payout | |
| 100% | 90% | |
| 103% | 100% | |
| 107% | 120% | |
| 111% | 150% | |
| 115% | 200% | |
2003 IBP Metric – EPS
| 2003 EPS – Weighting: 30% of IBP | ||
| % of EPS Achieved | Bonus Payout | |
| 100% | 90% | |
| 110% | 100% | |
| 130% | 120% | |
| 140% | 150% | |
| 150% | 200% | |
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