iRobot 2011 Annual Report Download - page 29

In February 2012, the compensation committee decided to maintain base salaries for 2012 at the 2011 levels
for the named executive officers, with the exception of Mr. Beck, who assumed additional responsibilities
through his promotion to chief operating officer.
Cash Incentive Compensation
The compensation committee believes that a portion of overall cash compensation for executive officers
should be “at risk,” i.e., contingent upon successful achievement of significant financial and business objectives
and implementation of our business strategy. For our named executive officers, including our chief executive
officer, the granting of cash incentive payments is based on an evaluation of achievement against predetermined
financial and operational metrics in accordance with our Senior Executive Incentive Compensation Plan that was
adopted by the compensation committee. Target cash incentives for named executive officers are generally
targeted between the 40th and 60th percentiles of similar cash incentives provided to officers in peer companies
reviewed by the compensation committee in the technology and robotics industries. The amount of cash
incentives paid to the named executive officers, however, is subject to the assessment of the compensation
committee of our performance in general and the achievement of specific goals.
For fiscal 2011, the target bonus awards under our Senior Executive Incentive Compensation Plan for each
of our named executive officers, as a percentage of base salary earned during the fiscal year, are summarized in
the table below. These target bonus amounts were set at levels the compensation committee determined were
appropriate in order to achieve our objective of retaining those executives who perform at or above the levels
necessary for us to achieve our business plan, which, among other things, involved growing our company in a
cost-effective way.
Incentive Bonus Award Opportunity (% of base salary)
Threshold
(50% of target opportunity) Target (100%)
Maximum
(150% of target opportunity)
Colin M. Angle .................. 50% 100% 150%
John J. Leahy ................... 32.5% 65% 97.5%
Joseph W. Dyer .................. 32.5% 65% 97.5%
Jeffrey A. Beck .................. 32.5% 65% 97.5%
Robert L. Moses ................. 32.5% 65% 97.5%
We designed our Senior Executive Incentive Compensation Plan to focus our executives on achieving key
corporate financial objectives and strategic milestones, and to reward substantial achievement of these company
financial objectives and strategic milestones. The 2011 performance goals and cash incentive payment criteria
established by the compensation committee under our Senior Executive Incentive Compensation Plan were
designed to require significant effort and operational success on the part of our named executive officers for
achievement.
While the Senior Executive Incentive Compensation Plan is designed to provide cash incentive payments
based upon objectively determinable formulas that tie cash incentive payments to specific financial goals and
strategic milestones, the compensation committee retains the discretion to reduce cash incentive payments under
the Senior Executive Incentive Compensation Plan based upon additional factors.
For each named executive officer, 100% of his target cash incentive compensation in 2011 was tied to key
financial and operating performance measures.
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