Pixelworks, Inc. 2004 Senior Management Bonus Plan
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.
