Pixelworks, Inc. 2005 Senior Management Bonus Plan
Pixelworks, Inc. has established a 2005 bonus plan for its executive officers, including the CEO, COO, and Vice Presidents. Bonuses are based on achieving specific revenue, pro forma operating income, and operational goals, each with assigned weightings. If all targets are met, the CEO and COO can receive bonuses equal to 100% of their salary, while Vice Presidents can receive 50%. Bonuses are adjusted if goals are not fully met, and the Compensation Committee may further modify awards based on qualitative factors. Performance is reviewed quarterly, with payouts scheduled for the first quarter of 2006.
EXHIBIT 10.1
Pixelworks, Inc.
2005 Senior Management Bonus Plan
Bonuses for executive officers of the Company are calculated based on attainment of planned levels of revenue and pro forma operating income, as well as attainment of specified operating goals. Each of the goals is weighted as follows:
| Revenue |
| 25.0 | % |
| Pro Forma Operating Income |
| 25.0 | % |
| 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 will occur in the first quarter of 2006.
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