Pixelworks, Inc. 2004 Senior Management Bonus Plan
Pixelworks, Inc. established a 2004 bonus plan for its executive officers, including the CEO, COO, and Vice Presidents. Bonuses are based on achieving specific targets for revenue, operating income, net income, and operational goals, each with assigned weightings. If all targets are met, executives receive a bonus as a percentage of their salary, with the CEO and COO eligible for 100% and Vice Presidents for 50%. Bonuses are adjusted if goals are not fully met, and the Compensation Committee may further modify payouts based on qualitative factors. Bonus determinations are made quarterly, with payouts in early 2005.
Exhibit 10.22
Pixelworks, Inc.
Bonuses for executive officers of the Company are calculated based on attainment of planned levels of revenue, pro forma operating income and net income in accordance with U.S. generally accepted accounting principles (“GAAP”), as well as attainment of specified product goals. Each of the goals is weighted as follows:
Revenue | 25.0 | % | ||
Pro Forma Operating Income | 12.5 | % | ||
GAAP Net Income | 12.5 | % | ||
Operational Goals | 50.0 | % | ||
| 100.0 | % |
If all goals are attained, bonuses are calculated as a percentage of each executive officer’s salary, as follows:
President and Chief Executive Officer | 100 | % | ||
Chief Operating Officer | 100 | % | ||
Vice Presidents | 50 | % |
If goals are not attained, bonuses are reduced proportionally. Additionally, the Compensation Committee of the Board of Directors may increase or decrease individual bonuses based on qualitative factors.
Determination as to whether or not the performance targets have been met is made quarterly. The payout of bonuses occurred in the first quarter of 2005.
