LSI Logic Corporation 2005 Semiconductor Incentive Plan Summary Description
LSI Logic Corporation's Compensation Committee adopted the 2005 Semiconductor Incentive Plan for its semiconductor segment. The plan establishes a bonus pool funded based on the segment's operating income and incremental revenue for fiscal year 2005. The pool is calculated as a fixed percentage of these financial metrics, with additional incentives if gross margin targets are surpassed. The bonus pool ranges from a minimum of 75% to a maximum of 200% of the target, but is only funded if certain financial thresholds are met and cannot exceed 7.5% of operating income.
Exhibit 1.1
Summary Description of LSI Logic Corporation 2005 Semiconductor Incentive Plan
On April 1, 2005, the Compensation Committee of the Board of Directors of LSI Logic Corporation (the “Company”) adopted the 2005 Semiconductor Incentive Plan (the “2005 Semiconductor Plan”) for the semiconductor segment of the Company. The funding of the bonus pool under the 2005 Semiconductor Plan is determined using multiples of operating income and incremental revenue for the semiconductor segment for fiscal year 2005. A specified fixed percentage of operating income and incremental revenue is used to fund the incentive bonus pool. An additional incentive is added if gross margin exceeds the targeted levels. The bonus pool will be a minimum of 75% of targeted funding and a maximum of 200% of targeted funding. However, no bonus pool is funded unless operating income and incremental revenue equal or exceed the specified threshold amounts. In no event will the incentive pools exceed 7.5% of operating income.
