iRobot 2011 Annual Report Download - page 31

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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 compensation committee chose this mix of financial targets for cash incentive compensation because it
believed that executive officers should be focused on a small set of critical financial and operating metrics that
reflect both corporate and divisional strategies in a manner that reinforce the executive’s role and impact.
Moreover, the compensation committee believed that the metrics should encourage collaboration and
accountability within divisions and with corporate functions.
Identical financial measures, although with differing weightings, were used for our performance incentive
plan, which is the cash incentive program that applies to all employees at the manager level and above.
The following table shows our achievement against the various metrics used for calculating the 2011 cash
incentive compensation for our named executive officers:
2011 Goals
Metric
Minimum
(50% of target)
Target
(100%)
Maximum
(150% of
target)
2011 Actual
Performance
Actual
Percentage
Earned (as %
of target)
$ in millions
Adjusted EBITDA, excluding cash incentive
compensation expense ................... $ 56.5 $ 70.6 $ 84.7 $ 84.0 148%
Company Revenue ........................ $365.8 $457.3 $548.8 $465.6 105%
Home Robots Divisional Revenue ............ $208.0 $260.0 $312.0 $278.5 118%
Government & Industrial Divisional Revenue . . . $151.4 $189.2 $227.1 $178.9 86%
Home Robots Divisional Contribution Margin . . * * * * 150%
Government & Industrial Divisional
Contribution Margin ..................... * * * * 73%
Overall Company Performance .............. * * * * 114%
The following table summarizes the resulting 2011 incentive awards paid to the executives based upon their
mix of performance measures as well as the associated weightings for each measure:
Target Incentive
Opportunity ($)
Actual Incentive Earned for
2011 Performance
% of Target $
Colin M. Angle ........................... 517,308 134% 692,158
John J. Leahy ............................ 242,476 134% 324,433
Joseph W. Dyer .......................... 242,450 134% 324,398
Jeffrey A. Beck ........................... 225,732 134% 302,029
Robert L. Moses .......................... 202,850 100% 202,039
Long-Term Incentives
Executive officers (and other employees) are eligible to receive restricted stock, stock option grants,
restricted stock units and other stock awards that are intended to promote success by aligning employee financial
interests with long-term shareholder value. These stock-based incentives are awarded based on various factors
primarily relating to the responsibilities of the individual officer or employee, their past performance, anticipated
future contributions and prior grants. In general, our compensation committee bases its decisions to grant stock-
based incentives on recommendations of our chief executive officer and the compensation committee’s analysis
28