iRobot 2011 Annual Report Download - page 30

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Proxy Statement
The following table summarizes the performance measures, associated weightings and goals for Messrs.
Angle, Leahy and Dyer. As discussed previously, the payout opportunity ranges from 50% of the target incentive
opportunity for achieving threshold level of performance to 150% of the target incentive opportunity for
achieving maximum level of performance.
Performance Measure Weighting
Performance Goal
Threshold Target Maximum
Adjusted EBITDA, excluding cash
incentive compensation
expense .................... 75% $ 56.5 million $ 70.6 million $ 84.7 million
Revenue ...................... 15% $365.8 million $457.3 million $548.8 million
“Overall Company
Performance”(1) ............. 10% * *
(1) “Overall company performance” is a confidential quantitative financial metric that blends the following
financial metrics: Adjusted EBITDA, divisional contribution margins, divisional revenue, as well as revenue
derived from funded research & development contracts and company mix between its various business
operations. Since the specific overall company performance targets are highly confidential, we do not
publicly disclose these targets. Disclosing the overall company performance targets would provide
competitors and other third parties with insights into our internal confidential strategic and planning
processes, sales and marketing budgets and other confidential matters, which might allow our competitors to
predict certain business strategies, thereby causing competitive harm. The overall company performance
targets were positioned to be aggressive, but achievable.
The target cash incentive for Mr. Beck had four elements:
Performance Measure Weighting
Performance Goal
Threshold Target Maximum
Adjusted EBITDA, excluding cash
incentive compensation expense .... 25% $56.5 million $70.6 million $84.7 million
Divisional contribution margin(2) .... 40% * *
Divisional revenue ................ 25% $260million $ 312 million
“Overall Company Performance” ..... 10% * *
(2) Generally, contribution margin was calculated as division specific revenue less cost of sales and operating
expenses, excluding cash incentive and stock based compensation. Since the specific contribution margin
targets are highly confidential, we do not publicly disclose these targets. Disclosing the contribution margin
targets would provide competitors and other third parties with insights into our internal confidential strategic
and planning processes, sales and marketing budgets and other confidential matters, which might allow our
competitors to predict certain business strategies, thereby causing competitive harm. The contribution
margin targets were positioned to be aggressive, but achievable.
The target cash incentive for Mr. Moses had four elements:
Performance Measure Weighting
Performance Goal
Threshold Target Maximum
Adjusted EBITDA, excluding cash
incentive compensation
expense ..................... 25% $56.5 million $ 70.6 million $ 84.7 million
Divisional contribution margin(2) . . 40% * *
Divisional revenue .............. 25% $189.2 million $151.4 million
“Overall Company Performance” . . . 10% * *
(2) Generally, contribution margin was calculated as division specific revenue less cost of sales and operating
expenses, excluding cash incentive and stock based compensation. Since the specific contribution margin
targets are highly confidential, we do not publicly disclose these targets. Disclosing the contribution margin
27