iRobot 2010 Annual Report Download - page 25

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• 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 recommen-
dations 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.
The compensation committee determines compensation for our chief executive officer using the same
factors it uses for other executive officers, placing relatively less emphasis on base salary, and instead, creating
greater performance-based opportunities through long-term equity and short term cash incentive compensation,
which we believe better aligns our chief executive officer’s interests with our success and the interests of our
stockholders. In assessing the compensation paid to our chief executive officer, the compensation committee
relies on both information from our selected benchmarks and its judgment with respect to the factors described
above.
Elements of Compensation
Our executive compensation program consists of three primary elements: salary, long-term equity interest,
primarily in the form of stock options and awards of restricted stock units, and an annual cash incentive
program based on both corporate and, if appropriate, divisional performance. All of our executive officers also
are eligible for certain benefits offered to employees generally, including life, health, disability and dental
insurance, as well as to participate in our 401(k) plan. We have also entered into executive agreements with
our executive officers that provide for certain severance benefits upon termination of employment, including a
termination following a change in control of the Company.
Annual Cash Compensation
Base Salary. The compensation committee believes that our executive officers, including our chief
executive officer, are paid salaries in line with their qualifications, experience and responsibilities. Salaries are
structured so that they are comparable with salaries paid by the peer companies reviewed by the compensation
committee in the technology and robotics industry. We target base salaries for each of our executives at the
market median (50th percentile) in the technology and robotics industry and also take into consideration many
additional factors (described below) that we believe enable us to attract, motivate and retain our leadership
team in an extremely competitive environment. Salaries are reviewed generally on an annual basis.
The compensation committee reviewed the base salaries for each of our executive officers, taking into
account an assessment of the individual’s responsibilities, experience, individual performance and contribution
to our performance, and also generally take into account the competitive environment for attracting and
retaining executives consistent with our business needs. In addition, the compensation committee took into
consideration the fact that no compensation adjustments had been made for our executive officers since
February 2008. With respect to each of our executive officers, other than Mr. Angle, Mr. Angle provided a
detailed evaluation and recommendation related to base salary adjustments, if any.
In light of the considerations discussed above, the base salaries of our named executive officers were
increased for fiscal year 2010 as follows:
2009 Base Salary 2010 Base Salary
Chief Executive Officer ................................ $378,769 $475,000
Chief Financial Officer ................................ $350,012 $362,262
Chief Operating Officer ................................ $325,000 $362,000
President, Home Robots Division ......................... $325,000 $332,312
The base salary of our senior vice president, human resources, who joined the Company in November
2010, was $300,000. We believe that the base salaries paid to our executive officers during our fiscal year
2010 helped to achieve our executive compensation objectives, compare favorably to our peer group and, in
21
Proxy Statement