Q4 2011 Management Metric Based Bonus Agreement for Rally Management
This agreement outlines the bonus structure for Rally management participants for the fourth quarter of 2011, based on the company's total product bookings. Bonuses are tied to achieving specific sales targets, with higher payouts for exceeding goals. The maximum bonus is capped at 200% for reaching 125% of the quota. Payments are expected 2 to 3 pay periods after the quarter ends. The agreement aims to align management incentives with sales objectives.
Exhibit 10.14.4
Date: | December 5, 2011 |
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To: | Management Metric Based Bonus (MBB) Participants |
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From: | Jim Lejeal |
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Regarding: | Q4-2011 (FYE 1/31/2012) MBB Algorithm |
The Rally Management Metric Based Bonus for Q4 2011 will be attached to company performance against total product bookings.
The intent is to align the company management with the sales teams bookings objectives.
Goal: Achieve the Companys Q4 assigned quota (aka Dons number) Total Product Bookings Sales Goal:
Company Quota Amount Budget:
New Product Bookings |
| $ | 5,000,000 |
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Renewal Product Bookings |
| $ | 9,750,000 |
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Total Product Bookings |
| $ | 14,750,000 |
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Payment Structure:
The payment structure is different than prior quarters and allows for significantly more upside as follows:
· We will continue to have a 90% new bookings threshold to trigger the quarterly MBB at 90%, then
· 100% of total product bookings will equate to a 100% payment of the quarterly MBB
· 104% of total product bookings will equate to a 104% payment of the quarterly MBB
· 105% of total product bookings will equate to a 125% payment of the quarterly MBB
· 109% of total product bookings will equate to a 129% payment of the quarterly MBB
· 110% of total product bookings will equate to a 176% payment of the quarterly MBB
· 115% of total product bookings will equate to a 184% payment of the quarterly MBB
· 120% of total product bookings will equate to a 192% payment of the quarterly MBB
· 125% of total product bookings will equate to a 200% payment of the quarterly MBB (consistent with previous quarters the capped total award is at 125%)
· Tiers are linear and percentages in between will have a proportionate payment (by way of example 108% will pay out at 128%)
Anticipated Payout Date:
2 to 3 pay periods after close of quarter