8-KMaterial AgreementsExhibits & Filings

MONOLITHIC POWER SYSTEMS INC 8-K Report, Material Agreement (Jul 28, 2006)

Filed July 28, 2006For Securities:MPWR

Summary

Monolithic Power Systems, Inc. (MPWR) filed an 8-K on July 28, 2006, reporting the adoption of the 2006 Employee Bonus Plan by its Board of Directors on July 27, 2006. This plan is a variable cash incentive program designed to align employee performance with both individual and company-wide financial objectives. Key company performance metrics include annual revenues and non-GAAP operating income, with the exclusion of stock-based compensation expenses. The Compensation Committee has the authority to adjust performance measures quarterly. The plan is discretionary, with the Board of Directors serving as the administrator. Bonus payments are contingent upon the achievement of specific individual and corporate goals. The filing also details the maximum potential annual bonus amounts for executive officers for fiscal year 2006, including the CEO, CFO, and VPs, with provisions for downward adjustments based on performance. The full text of the 2006 Employee Bonus Plan is filed as an exhibit.

Key Highlights

  • 1Monolithic Power Systems (MPWR) established the 2006 Employee Bonus Plan.
  • 2The plan is designed as a variable cash incentive program for employees, including executive officers.
  • 3Bonus payouts are contingent on achieving both individual and company performance objectives.
  • 4Company performance metrics include annual revenues and non-GAAP operating income (excluding stock-based compensation).
  • 5The Board of Directors has discretion over bonus payments and acts as the plan administrator.
  • 6Maximum potential bonuses for fiscal year 2006 are detailed for executive officers, with potential for downward adjustments.
  • 7The full Employee Bonus Plan document is included as an exhibit to the 8-K filing.

Frequently Asked Questions

The primary purpose of the 2006 Employee Bonus Plan is to motivate employees, including executive officers, by providing a variable cash incentive program tied to the achievement of both their individual performance objectives and the company's financial goals, such as annual revenues and non-GAAP operating income.

No, bonus payments are not guaranteed. The plan is discretionary, meaning payments are made solely at the discretion of the Board of Directors, who also serve as the plan administrator. Payouts depend on the achievement of pre-determined individual and company performance objectives.

Company performance for bonus determination will be based on achieving certain annual revenues and non-GAAP operating income. Notably, expenses related to stock-based compensation are excluded from the non-GAAP operating income calculation.

Yes, the maximum potential bonus amounts can be adjusted downward based on the executive's individual performance and the company's achievement of corporate objectives. The Compensation Committee also has the authority to modify performance measures quarterly.