iRobot 2012 Annual Report Download - page 30

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24
The following table summarizes the performance measures, associated weightings and goals for each of the named
executive officers. As discussed previously, the payout opportunity ranges from 30% of the target incentive opportunity for
achieving threshold level of performance to 162.5% 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 60% $76.9 million $85.4 million $102.5 million
Revenue 40% $404.4 million $505.5 million $606.6 million
The compensation committee chose this mix of financial targets for the cash incentive compensation because it believed
that executive officers should be focused on a small set of critical, team-based financial and operating metrics that reinforce the
executive's role and impact. The compensation committee, however, determined that the available incentive compensation for
the entire employee base - including the named executive officers - should be reduced on a dollar-for-dollar basis if Adjusted
EBITDA, excluding cash incentive compensation expense fell below $76.9 million.
The following table shows our achievement against the various metrics used for calculating the 2012 cash incentive
compensation for our named executive officers:
Metric
Minimum
(80% of target for Company
Revenue; 90% of Adjusted
EBITDA, excluding cash incentive
compensation expense) Target
(100%)
Maximum
(120% of
target) 2012 Actual
Performance
Actual
Percentage
Earned (as %
of target)
$ in millions
Adjusted EBITDA, excluding cash
incentive compensation expense $76.9 $85.4 $102.5 $52.5 —
Company Revenue $404.4 $505.5 $606.6 $436.2 —
Because Adjusted EBITDA fell below the minimum objectives established during the first quarter of 2012, no payments
were made to named executive officers pursuant to the Senior Executive Incentive Compensation Plan.
Nevertheless, under the discretion afforded to the compensation committee, discretionary bonus awards were made to the
named executive officers. These bonus payments were set at between 20-46% of the executive's original target. In determining
the appropriateness of discretionary payments, the compensation committee considered the contributions of the individual,
partial achievement of the company revenue targets along with significant business accomplishments during the year including:
• Full-year domestic Home Robot revenue growth of more than 40 percent, coupled with international
revenue growth of 22 percent, driving a 28 percent year-over-year increase in full-year Home Robot
revenue.
• Aggressive expense management to reduce costs and preserve profitability in light of severe decline in
defense revenue.
• The acquisition of Evolution Robotics, Inc., including activities related to integration of Evolution
Robotics, Inc. products, operations and technology.
• Comprehensive reorganization of the company, improving organizational alignment and reducing
headcount by 17%.
The compensation committee viewed these detailed actions as critical to positioning the company for future success.