TiVo Inc. Fiscal Year 2006 Six and Twelve Month Executive Bonus Plans
TiVo Inc. has established bonus plans for its executives for fiscal year 2006 to reward them for meeting company goals. Executives, including the CEO, are eligible for cash bonuses based on the achievement of specific performance targets set by the Compensation Committee and Board of Directors. Bonus amounts are tied to a percentage of base salary and depend on company performance in areas like financial results, subscription growth, innovation, and employee retention. The plans allow for mid-year and year-end payouts, and the company may adjust goals or criteria at any time.
Exhibit 10.1
Description of
TiVo Inc. Fiscal Year 2006
Six and Twelve Month Bonus Plans for Executives.
Purpose:
The terms of the TiVo Inc. (the Company) Fiscal Year 2006 Six and Twelve Month Bonus Plans for Executives (each the Six Month Plan and Twelve Month Plan, and together the Plans) have been established to reward the Companys executives for assisting the Company in achieving its operational goals through exemplary performance. Under the Plans, cash bonuses, if any, will be based on the achievement of specified corporate goals, as determined by the Compensation Committee of the Board of Directors (the Compensation Committee) and/or the Board of Directors (the Board).
Determination of Fiscal Year 2006 Bonuses:
Target cash bonuses for executives (excluding the Companys Chief Executive Officer) under the Plans for fiscal year 2006 range from 30% to 50% of the recipients base salary. The participation in the Plans of the Companys Chief Executive Officer, Michael Ramsay, will be prorated for the amount of time he actually serves as Chief Executive Officer of the Company. Mr. Ramsays fiscal year 2006 target bonus amount for the Plans is set at seventy percent (70%) of his fiscal year 2006 base compensation. Actual bonuses will be based on the achievement of objective Company performance goals and may be higher or lower than targeted amounts according to a pre-determined formula that will be applied by the Compensation Committee. The objective Company performance goals will be based on meeting certain goals with respect to the Companys financial performance, subscription growth, product innovation and distribution, and employee recruitment and retention, as well as other Company performance goals that may be determined by the Compensation Committee. Under the Six Month Plan, the Companys executives will be eligible to receive up to half of their full fiscal year 2006 bonuses at the mid-point of the Companys fiscal year based upon the Compensation Committees assessment of the Companys progress towards achievement of its pre-determined performance goals for fiscal year 2006. The Board and the Compensation Committee reserve the right to modify these goals, amounts and criteria at any time.