Summary
Intuit Inc. filed an 8-K on October 31, 2005, reporting a material definitive agreement concerning its executive compensation. Specifically, on October 25, 2005, the Compensation Committee of Intuit's Board of Directors established the performance threshold for fiscal year 2006 bonuses under the Senior Executive Incentive Plan (SEIP). The SEIP, approved by stockholders in December 2002, is designed to motivate and retain senior executives by linking compensation to company performance. For fiscal year 2006, the threshold performance goal is tied to a specific revenue target. Achieving this target is a prerequisite for any bonus payout. While the maximum bonus per participant is capped at $5 million, actual individual bonus amounts will be determined by the Compensation Committee based on performance criteria if the threshold is met.
Key Highlights
- 1Intuit established performance goals for executive bonuses for fiscal year 2006.
- 2The Senior Executive Incentive Plan (SEIP) is a cash incentive plan tied to company performance.
- 3The SEIP was previously approved by Intuit stockholders in December 2002.
- 4A specified revenue target is the threshold performance goal for fiscal year 2006 bonuses.
- 5The maximum bonus payout per executive is capped at $5 million.
- 6Actual bonus amounts will be determined by the Compensation Committee based on performance criteria if the threshold is met.