Summary
Analog Devices, Inc. (ADI) has filed an 8-K report detailing the approval of its 2008 Executive Bonus Plan by the Compensation Committee. This plan outlines the framework for bonus payments to executive officers and senior management for fiscal year 2008. The plan links bonus payouts directly to the company's financial performance, specifically operating profit before tax (OPBT) as a percentage of revenue, and individual performance metrics. Investors should note that the bonus structure is designed with significant upside potential, with a Bonus Payout Factor that can range from 0% to 300% of an individual's target bonus, which is itself determined by base salary and an individual target bonus percentage (50%-160%). Furthermore, certain participants have the potential for an additional bonus increase of up to 30% based on superior individual business performance, as assessed by the CEO and approved by the Compensation Committee. Bonus distributions will occur semi-annually, with the final payout including any adjustments for individual performance.
Key Highlights
- 1ADI's Compensation Committee approved the 2008 Executive Bonus Plan on January 22, 2008.
- 2The plan applies to executive officers and other senior management selected by the CEO.
- 3Bonuses are based on a "Fiscal 2008 Bonus Target" (Base Salary x Individual Target Bonus Percentage) and a "Bonus Payout Factor."
- 4The Bonus Payout Factor is directly tied to the Company's operating profit before tax (OPBT) as a percentage of revenue.
- 5The Bonus Payout Factor can range from 0% to 300% of the Fiscal 2008 Bonus Target.
- 6Participants (excluding Ray Stata and Jerald Fishman) are eligible for an additional bonus of up to 30% based on superior individual business performance.
- 7Bonus payments are calculated quarterly and distributed semi-annually, with the final payout adjusted for individual performance.