Micromuse Executive Bonus Plan Summary for Fiscal Year 2004
Micromuse's executive bonus plan for fiscal year 2004, as approved by the Compensation Committee, outlines performance-based bonuses for the CEO and CFO based on meeting revenue and earnings-per-share targets. Additional bonus increases were available if revenue backlog reached certain levels. Other executive officers could earn bonuses based on quarterly operational goals set and evaluated by the CEO. Bonus payments were made according to these criteria and required Compensation Committee approval.
EXHIBIT 10.8
SUMMARY OF EXECUTIVE BONUS PLAN
The following is a summary of the executive bonus plan as adopted by the Compensation Committee of the Micromuse Board of Directors in October 2003 for the fiscal year ending September 30, 2004.
In fiscal year 2004, Micromuse’s Chief Executive Officer, Lloyd Carney, and Chief Financial Officer, Mike Luetkemeyer, were considered eligible for performance-based variable compensation based on their achievement of revenue and earnings-per-share targets established in advance by the Compensation Committee of the Company’s Board of Directors. These executives were considered eligible for increases in the amounts of their bonuses for quarters in which revenue backlog increased to pre-determined levels. Actual payout of these bonuses for the executives was processed in accordance with these parameters, with authorization from the Compensation Committee.
Other Micromuse executive officers were also eligible to receive variable compensation (bonus) awards based on their achievement of specific operational goals set each quarter by Mr. Carney. Upon completion of each quarter, goal achievement was rated by Mr. Carney and subsequent bonus payout levels were calculated and paid.
