Monolithic Power Systems Non-Employee Director Compensation Plan Summary
Monolithic Power Systems provides non-employee board members with an annual cash retainer of $15,000. Additional annual retainers are given to the Chair of the Compensation Committee ($10,000) and the Chair of the Audit Committee ($25,000). To qualify, directors must own less than one percent of the company's outstanding common stock. Upon appointment, non-employee directors receive an option to purchase 30,000 shares, and an additional option for 15,000 shares is granted annually if they have served at least six months.
EXHIBIT 10.1
Summary of Compensation Plan of Non-Employee Board Members
Non-employee directors of Monolithic Power Systems will receive an annual retainer of $15,000 (“Base Retainer”). In addition to the Base Retainer, the Chair of the Compensation Committee will receive an additional annual retainer of $10,000 and the Chair of the Audit Committee will receive an additional annual retainer of $25,000. In order to be eligible to receive the foregoing cash compensation, such non-employee director must own, directly or indirectly, less than one percent of the Registrant’s outstanding shares of Common Stock as of the Registrant’s annual meeting of stockholders. Non-employee directors will receive an initial option grant to purchase 30,000 shares of Common Stock upon appointment. Each non-employee member of the Board will continue to receive an option to purchase 15,000 shares of Common Stock on the date of the annual meeting of stockholders, provided such non-employee director has served on the Board for at least the preceding six months.
