Summary
Equinix, Inc. (EQIX) filed an 8-K on February 22, 2017, to report the approval of its 2017 Annual Incentive Plan by its Compensation Committee. This plan outlines the structure for executive officer bonuses for the fiscal year ending December 31, 2017. Key aspects of the 2017 Plan include a target bonus range of 85% to 130% of base salary, payable in cash. Importantly, executive awards are capped at the target payout, meaning there is no additional compensation for exceeding performance goals. The bonus payouts are directly tied to Equinix's performance against revenue and adjusted funds from operations (AFFO) goals, each weighted at 50%. The plan incorporates specific penalties for underperformance, with a 20% reduction in the respective bonus pool portion for every 1% below the revenue or AFFO goals, and no bonuses will be paid if revenue and AFFO fall to 95% or below the set targets.
Key Highlights
- 1Equinix approved its 2017 Annual Incentive Plan for eligible employees, including executive officers, effective February 16, 2017.
- 2Annual target bonus amounts for executives will range from 85% to 130% of their base salary.
- 3Bonuses will be payable in cash.
- 4Executive bonus payouts are capped at the target amount, regardless of over-performance.
- 5Bonus funding is contingent on achieving pre-set revenue and AFFO goals, each carrying a 50% weighting.
- 6Performance below target goals results in a proportional reduction of the bonus pool: 20% reduction for every 1% shortfall in revenue or AFFO.
- 7No bonuses will be paid if revenue and AFFO are 95% or less of the established goals.