iRobot 2011 Annual Report Download - page 27

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• Companies within the technology industry
• Companies with a similar business strategy
• Highly innovative product(s) technological advancement
• Moderate to high growth over a 1-, 3-, and 5- year period
• Moderate sales in the United States and internationally
• Companies with moderate to high level of research and development expense
• Companies with two or more lines of business — defense and commercial electronics
The resulting peer group consisted of the following 15 firms:
Accuray Incorporated Intuitive Surgical, Inc.
AeroVironment, Inc. Orbital Sciences Corporation
American Science & Engineering, Inc. Plantronics, Inc.
Argon ST, Inc. Synaptics Incorporated
Audiovox Corporation Tivo Inc.
Bruker Corporation Trimble Navigation Limited
Cognex Corporation Universal Electronics Inc.
ICx Technologies, Inc.
These fifteen companies, at the time of the analysis, had median annual revenues of $314 million and a
median market capitalization of $945 million, compared to our 2011 annual revenue of $465 million and
year-end market capitalization of $812 million.
We will annually reassess the relevance of our peer group and make changes when judged appropriate. We
believe that the use of benchmarking is an important factor in remaining competitive with our peers and
furthering our objective of attracting, motivating and retaining highly qualified personnel.
The compensation committee reviews all components of compensation for named executive officers. In
accordance with its charter, the compensation committee also, among other responsibilities, administers our
incentive compensation plan, and reviews and makes recommendations to management on company-wide
compensation programs and practices. In setting compensation levels for our executive officers in fiscal 2011,
the compensation committee considered many factors in addition to benchmarking described above, including,
but not limited to:
• the scope and strategic impact of the executive officer’s responsibilities,
• our past business and segment performance, and future expectations,
• our long-term goals and strategies,
• the performance and experience of each individual,
• past compensation levels of each individual and of the named executive officers as a group,
• relative levels of pay among the executive officers,
• the amount of base salary in the context of the executive officer’s total compensation and other
benefits,
• for each named executive officer, other than the chief executive officer, the evaluations and
recommendations of the chief executive officer, and
• the competitiveness of the compensation packages relative to the selected benchmarks as highlighted
by the independent compensation consultant’s analysis.
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