Summary
This 8-K filing from Equinix (EQIX) on February 17, 2015, primarily details the approval of the Equinix 2015 Incentive Plan by the Compensation Committee of the Board of Directors. This plan outlines the structure for executive officer bonuses for the fiscal year ending December 31, 2015. The 2015 Plan establishes annual target bonus percentages of base salary for executives, ranging from 70% to 125%. The actual bonus payouts are directly tied to the company's performance against pre-set revenue and Adjusted Funds From Operations (AFFO) goals, each weighted at 50%. Specific performance thresholds are defined, including a minimum achievement level of 95% of operating plan goals for revenue and AFFO to trigger any bonus payout, with penalties for underperformance and discretionary adjustments by the Compensation Committee.
Key Highlights
- 1Equinix approved the 2015 Incentive Plan for eligible employees, including executive officers.
- 2The plan governs executive bonuses for the fiscal year ending December 31, 2015.
- 3Annual target bonuses range from 70% to 125% of an executive's base salary.
- 4Bonus payouts are based on a 50/50 weighting of company performance against revenue and Adjusted Funds From Operations (AFFO) goals.
- 5A minimum of 95% achievement of revenue and AFFO operating plan goals is required for any bonus payout.
- 6For every 1% below the operating plan for revenue or AFFO, the respective bonus portion is reduced by 20%.
- 7The Compensation Committee retains discretion to adjust or eliminate bonus payouts.