Summary
This Form 8-K filing by DexCom, Inc. (DXCM) on February 9, 2007, details the compensation arrangements for its Named Executive Officers for fiscal year 2007, as approved by the Compensation Committee on February 5, 2007. Key changes include a reduction in CEO Andrew P. Rasdal's base salary to $300,000, while other key executives like the CFO and VPs received salary increases. The company also introduced a performance-based bonus plan for all employees, including executives, tied to achieving specified revenue and operating income targets.
Key Highlights
- 1DexCom, Inc. (DXCM) has established fiscal 2007 salaries and bonus plans for its Named Executive Officers.
- 2CEO Andrew P. Rasdal's base salary was reduced to $300,000 for fiscal 2007.
- 3Salaries for other key executives, including the CFO and VPs, have been increased for fiscal 2007.
- 4A new 2007 Bonus Plan is introduced, making all employees eligible for cash bonuses based on company performance.
- 5Bonuses are weighted 60% on revenue targets and 40% on operating income targets.
- 6A minimum revenue target must be met for any bonuses to be paid; threshold bonus is 12% of base salary.
- 7CEO Andrew P. Rasdal has a separate bonus plan with specific targets and potential payouts up to $140,000, plus discretionary bonuses.
Frequently Asked Questions
This filing announces the approved salaries and performance-based bonus plans for DexCom's Named Executive Officers for the fiscal year 2007. It outlines changes to base salaries and the structure of potential bonus compensation tied to company financial performance.
The 2007 Bonus Plan is designed to incentivize employees, including executives, by tying cash bonuses to achieving specific revenue and operating income targets. The bonus payout is determined by reaching a minimum revenue threshold, with increasing percentages of base salary awarded for achieving 100% of targets and further potential for exceeding them, up to a maximum.
Yes, there are changes to executive salaries for 2007. CEO Andrew P. Rasdal's base salary has been reduced to $300,000 at his request. However, the annual base salaries for the Chief Financial Officer, Vice President of Clinical and Regulatory Affairs, and Vice President of Advanced Development Team have been increased.
The bonuses under the 2007 Plan are primarily based on achieving targeted revenue and operating income goals. Specifically, 60% of the bonus is tied to revenue performance and 40% to operating income performance.