Base Salary $ 250,000 Target Incentive at 100% of Plan $ 125,000 Over-Achievement Bonus Opportunity $ 80,000
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EX-10.72 3 b62803niexv10w72.htm EX-10.72 2007 BONUS LETTER, DATED OCTOBER 24, 2006 (JOHN GAVIN) exv10w72
Exhibit 10.72
October 24, 2006
John Gavin
Senior Vice President and Chief Financial Officer
NaviSite, Inc.
Senior Vice President and Chief Financial Officer
NaviSite, Inc.
Dear John,
I am pleased to confirm that NaviSites Board of Directors has approved a program to provide incentive compensation to members of NaviSites Executive Team. As a key member of the companys Executive Team you are eligible to participate in this 2007 Executive Incentive Program.
Your fiscal 2007 annualized total target cash compensation is $375,000, comprised of your base salary and target incentive. In addition, you have a significant Over-Achievement bonus opportunity. Your FY 2007 compensation package includes:
Base Salary | $ | 250,000 | ||
Target Incentive at 100% of Plan | $ | 125,000 | ||
Over-Achievement Bonus Opportunity | $ | 80,000 |
Your Target Incentive payment will be paid for performance up to 100% of plan and will be based upon attainment of the weighted performance metrics as outlined below:
% | % | |||||||||||||||
Weight | Performance Metric | Target | Achieve | Payout | ||||||||||||
75 | % | Corporate EBITDA | $ | 28,000,000 | * | 85 | % | 70 | % | |||||||
90 | % | 80 | % | |||||||||||||
95 | % | 90 | % | |||||||||||||
100 | % | 100 | % | |||||||||||||
25 | % | Corporate Revenue | $ | 130,249,000 | 90 | % | 70 | % | ||||||||
93 | % | 80 | % | |||||||||||||
96 | % | 90 | % | |||||||||||||
100 | % | 100 | % |
* | Excludes accrual for 2007 Executive Incentive Program |
The Over-Achievement Bonus will be paid for achievement of Corporate EBITDA between $28MM* and $32MM*. You must meet your individual on-plan EBITDA target threshold to participate in the Over-Achievement Bonus. The over plan achievement rate of an additional $4MM in EBITDA will be applied to your Over Achievement Bonus Opportunity of $80,000. The percent payout of your Over-Achievement Bonus will equal the percent achievement of the incremental $4 million of Corporate EBITDA.
NaviSite, Inc.
400 Minuteman Road, Andover, MA 01810
Phone: 978 ###-###-#### Fax: 978 ###-###-####
www.navisite.com
400 Minuteman Road, Andover, MA 01810
Phone: 978 ###-###-#### Fax: 978 ###-###-####
www.navisite.com
For example: | Corp EBITDA | = $31MM | ||||
$3MM / $4MM | = 75% | |||||
75% x $80,000 | = $60,000 |
As with any compensation plan, NaviSite reserves the right to make changes to the 2007 Executive Incentive plan as needed. For example, if the business changes as the result of a major acquisition or disposition, plan targets may be revisited.
The intent of this plan is to provide exceptional compensation opportunity in return for exceptional results, and it reflects the confidence that the Board of Directors has in you and in the talent of the Navisite executive team.
I look forward to continuing our work together for a successful 2007!
Regards
/s/ Arthur Becker
Arthur Becker
CEO
CEO
/s/ John Gavin | 10/25/06 | ||
Signed John Gavin | Date |
NaviSite, Inc.
400 Minuteman Road, Andover, MA 01810
Phone: 978 ###-###-#### Fax: 978 ###-###-####
www.navisite.com
400 Minuteman Road, Andover, MA 01810
Phone: 978 ###-###-#### Fax: 978 ###-###-####
www.navisite.com