What are the key performance metrics for executive bonuses in 2013?

The key performance metrics for executive bonuses in 2013 are Equinix's revenue and adjusted EBITDA. Both metrics are weighted equally at 50% of the bonus determination.

What is the vesting and earning condition for the performance-based RSUs?

The performance-based RSUs have two components: one-third of the RSUs are tied to Total Shareholder Return (TSR) over a two-year period, with payouts ranging from 0% to 200% based on performance against the Russell 1000 Index. The remaining RSUs are earned based on achieving 2013 revenue and adjusted EBITDA performance goals, combined with service-based vesting.

Are there any conditions under which executive bonuses would not be paid?

Yes, no bonuses will be paid if Equinix's revenue and adjusted EBITDA are 95% or less of the approved operating plan goals. Additionally, the Compensation Committee has the discretion to reduce or eliminate awards if economic conditions warrant.

How are one-time events and currency fluctuations handled in bonus calculations?

The goals for bonus calculations exclude the impact of one-time events, such as expansion projects or acquisitions not originally in the operating plan. They also exclude the impact of foreign currency fluctuations against the rates used in the operating plan.

EQIX 8-K: Leadership Changes

Summary

Equinix, Inc. (EQIX) filed an 8-K on February 21, 2013, detailing compensation arrangements for its executive officers for the fiscal year 2013. The Compensation Committee approved the Equinix 2013 Incentive Plan, which outlines annual cash bonuses tied to the company's performance against revenue and adjusted EBITDA goals. These goals are weighted equally at 50% each, with specific performance thresholds and clawback provisions outlined. The plan also includes provisions for discretionary adjustments by the Compensation Committee.

Key Highlights

1Equinix established the 2013 Incentive Plan for executive officers, setting annual target bonus amounts ranging from 65% to 115% of base salary.
2Annual bonuses are directly linked to company performance, with 50% weighting for revenue goals and 50% for adjusted EBITDA goals.
3Performance metrics exclude the impact of one-time events like acquisitions and foreign currency fluctuations.
4Strict performance hurdles exist: 100% funding if goals are met, with reductions for underperformance and no bonuses if revenue and adjusted EBITDA are 95% or less of targets.
5The Compensation Committee retains discretion to reduce or eliminate awards based on economic conditions.
6Long-term incentives were granted in the form of performance-based Restricted Stock Units (RSUs).
7A portion of RSUs (33.3%) is tied to Total Shareholder Return (TSR) performance over a two-year period, with potential payouts ranging from 0% to 200% against the Russell 1000 Index.

EQUINIX INC 8-K Report, Executive Changes (Feb 21, 2013)

Summary

Key Highlights

Frequently Asked Questions