iRobot 2015 Annual Report Download - page 42

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Elements of Compensation
Our executive compensation program in 2015 consists of three primary elements: base salary, an annual
cash incentive, and long-term equity interests, primarily in the form of time vesting restricted stock units,
performance share units (“PSUs”) and stock options. 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
participation 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 in connection
with a change in control of the Company.
Base Salary
In 2015, the compensation and talent committee believes our executive officers, including our chief
executive officer, were paid salaries in line with their qualifications, experience and responsibilities. Salaries are
structured so they are within the range of salaries paid by the peer companies reviewed by the compensation and
talent committee in the technology and robotics industry. We generally aim to set base salaries for each of our
executives between the 55th and 75th percentiles 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 on an annual basis.
The compensation and talent 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 takes into account the competitive environment for attracting
and retaining executives consistent with our business needs. With respect to each of our executive officers, our
chief executive officer provided a detailed evaluation and recommendation related to base salary adjustments, if
any (excluding for himself).
We believe the base salaries paid to our executive officers during our fiscal year 2015 helped to achieve
our executive compensation objectives. In addition, we believe that the base salaries of our named executive
officers, which range from 18% to 34% as a percentage of total compensation, are set at an appropriate level to
keep a significant portion of executive compensation at risk as part of our compensation philosophy.
In February 2016, and as part of the annual review process while taking into account the considerations
discussed above, the compensation and talent committee also approved base salary adjustments for 2016 as noted
in the table below.
2014 Base Salary % Increase 2015 Base Salary % Increase 2016 Base Salary
Colin M. Angle $650,000 3.8% $675,000 3.7% $700,000
Alison Dean $400,000 7.5% $430,000 7.0% $460,000
Russell J. Campanello $325,000 4.6% $340,000 2.9% $350,000
Christian Cerda $350,000 14.3% $400,000 5.0% $420,000
Glen D. Weinstein $348,500 4.7% $365,000 4.1% $380,000
Cash Incentive Compensation
The compensation and talent committee believes that short-term cash incentive compensation for executive
officers should be contingent upon successful achievement of significant financial and business objectives and
implementation of our business strategy. For our named executive officers, including our chief executive officer,
the payment of cash incentive awards is based on an evaluation of achievement against predetermined Company
financial and operational metrics in accordance with our Senior Executive Incentive Compensation Plan that was
adopted by the compensation and talent committee. For each named executive officer, 100% of his or her target
cash incentive compensation in 2015 was tied to key Company financial and operating performance measures.
Target cash incentives for named executive officers are generally targeted between the 55th and 75th percentiles
of similar cash incentives provided to officers in peer companies reviewed by the compensation and talent
Notice of Annual Meeting of Stockholders and iRobot 2016 Proxy Statement
34