Summary
Equinix, Inc. (EQIX) announced the approval of its 2022 Annual Incentive Plan (the "2022 Plan") for eligible employees, including executive officers. A key feature of this plan is the payment of earned bonuses in fully vested restricted stock units (RSUs), rather than cash. This strategy is intended to conserve cash for investment and better align executive incentives with shareholder interests. The performance metrics for determining bonus payouts are equally weighted between revenue (50%) and adjusted funds from operations per share (AFFO/Share) (50%). The plan also incorporates a "Strategic Modifier" for Vice President level and above, including executive officers, which will assess performance on digital services business objectives and Environmental, Social, and Governance (ESG) initiatives. This modifier can adjust the final payout by up to 10% upwards or downwards, reflecting the company's commitment to strategic priorities.
Key Highlights
- 1Equinix approved the 2022 Annual Incentive Plan (2022 Plan) for employees and executive officers.
- 2Bonuses will be paid in fully vested Restricted Stock Units (RSUs), not cash, to conserve capital for investments and align executive and shareholder interests.
- 3Annual bonuses are based on 50% revenue performance and 50% Adjusted Funds From Operations per Share (AFFO/Share) performance against Board-approved goals.
- 4A "Strategic Modifier" impacts payouts for VP level and above, considering digital services business and ESG objectives (climate, energy efficiency, EVs, diversity).
- 5The Strategic Modifier can adjust the final payout by up to +/- 10%.
- 6Payouts are subject to specific performance thresholds; no bonuses are paid if revenue and AFFO/Share are 95% or less of the Goals.
- 7The Compensation Committee retains discretion to reduce or eliminate bonus awards.