Summary
Equinix, Inc. (EQIX) filed an 8-K on March 10, 2014, to report on the granting of long-term incentives to its executive officers. The Compensation Committee awarded performance-based restricted stock units (RSUs) that are fully at risk, meaning executives will receive no shares if performance targets are not met. This structure aligns executive compensation with company performance and shareholder value creation. The performance metrics for these RSUs include Total Shareholder Return (TSR) relative to the Russell 1000 Index over a two-year period, with potential payouts ranging from 0% to 200% of the target units. Additionally, a portion of the RSUs are tied to achieving revenue and Adjusted EBITDA goals for the fiscal year 2014, subject to continued service by the executive officers.
Key Highlights
- 1Equinix granted performance-based restricted stock units (RSUs) to executive officers on March 6, 2014.
- 2The RSUs are 100% performance-based and at risk, meaning no shares vest if targets are missed.
- 3Total Shareholder Return (TSR) against the Russell 1000 Index is a key performance metric for 33.33% of the RSUs over a two-year period.
- 4TSR RSU payouts can range from 0% to 200% of the target number of units.
- 5The remaining RSUs are contingent on achieving revenue and Adjusted EBITDA targets for fiscal year 2014.
- 6Service-based vesting requirements apply to earned RSUs.
- 7The Chief Financial Officer, Keith D. Taylor, signed the filing on behalf of Equinix.