Summary
Equinix, Inc. (EQIX) filed an 8-K on February 18, 2009, detailing its 2009 Incentive Plan, approved by the Compensation Committee of the Board of Directors on February 12, 2009. This plan is designed for eligible employees, including executive officers, for the fiscal year ending December 31, 2009. The plan outlines annual target bonus amounts, ranging from 55% to 100% of base salary, contingent on the company's performance against a Board-approved EBITDA goal. The bonus payouts are directly tied to achieving specific EBITDA targets, with provisions for reductions if performance falls short and complete elimination of bonuses if EBITDA is 95% or less than the operating plan. The Compensation Committee also retains discretion to reduce or eliminate bonuses based on economic conditions, providing a structured yet flexible approach to executive compensation in anticipation of the 2009 fiscal year.
Key Highlights
- 1Equinix announced the approval of its 2009 Incentive Plan for eligible employees and executive officers.
- 2The plan covers the fiscal year ending December 31, 2009.
- 3Annual target bonus amounts for executive officers range from 55% to 100% of their base salary.
- 4Bonus payouts are primarily based on the company's performance against a Board-approved EBITDA goal.
- 5The plan includes performance thresholds: 100% funding at target, 20% bonus reduction for every 1% below target, and no bonuses if EBITDA is 95% or less than the target.
- 6EBITDA calculations will exclude the impact of one-time events like unforecasted expansion projects or acquisitions.
- 7The Compensation Committee has the discretion to reduce or eliminate bonus awards based on economic conditions.