iRobot 2007 Annual Report Download - page 26

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approximately 68.5%, 68.6%, 80.3% and 61.7% of the total compensation for Mr. Angle, Ms. Greiner and
Messrs. Clear and Dyer, respectively.
Cash Incentive Compensation
Our named executive officers are eligible to participate in our Senior Executive Incentive Compensation
Plan. Pursuant to this plan, we award our named executive officers cash incentive payments based on an
evaluation of the achievement against predetermined measurable financial and operational metrics in accor-
dance with the terms of the plan as adopted by the compensation committee. Target cash incentives for named
executive officers are generally targeted at the 50th percentile of similar cash incentives provided to officers in
peer companies reviewed by the compensation committee in the technology and robotics industries.
For each executive officer, except Ms. Lawrence, 100% of his or her target bonus in 2007 was tied to a
company-wide revenue threshold. We had to achieve minimum revenue of approximately $225 million for any
portion of the bonus to be accrued, with bonus accrual increasing ratably until we achieve revenue of
approximately $238 million, at which 100% of the target bonus would have been accrued; provided, however,
that the payment of such bonus was conditioned on our pre-tax net income for fiscal 2007 remaining above a
pre-determined threshold of $3 million. We achieved our revenue threshold for 2007, but because we did not
achieve the minimum level of pre-tax net income, the executive officers, except Ms. Lawrence, did not earn
any of his or her target bonus. Because Ms. Lawrence joined us in May 2007, after a substantial portion of the
year had passed, the compensation committee provided that her cash incentive compensation would be paid at
100% of her threshold, which was approximately 16.3% of her total compensation.
For 2006, non-equity incentive compensation was approximately 25.5%, 25.5%, 13.9% and 34.5% of the
total compensation for Mr. Angle, Ms. Greiner and Messrs. Clear and Dyer, respectively.
Equity Incentive Compensation
Executive officers are eligible to receive restricted stock, stock option grants and other stock awards.
These stock-based incentives are based on various factors primarily relating to the responsibilities of the
individual officer or employee, their past performance, anticipated future contributions and prior option grants.
In general, our compensation committee bases its decisions to grant stock-based incentives on recommenda-
tions of management and the compensation committee’s analysis of peer group compensation information,
with the intention of keeping the executives’ overall compensation, including the equity component of that
compensation, at a competitive level with the comparator companies reviewed by the committee in the
technology and robotics industries. Our compensation committee also considers the number of shares of
common stock outstanding, the number of shares of common stock authorized for issuance under its equity
compensation plans, the number of options and shares held by the executive officer for whom an award is
being considered and the other elements of the officer’s compensation, as well as our compensation objectives
and policies described above. In 2007, stock options and restricted stock awards were granted to our named
executive officers, as noted in the “Grants of Plan-Based Awards- 2007” table above. There were no stock
options or restricted stock awards granted to our named executive officers in 2006.
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