Ceo Bonus Plan Sample - Saas Software Co.

A SaaS Sofware Company 2009 Incentive Compensation Plan

Name: XXXXXXX

Annual Base Salary:

$xxx,xxx

Title:

Annual Target Bonus:

$xxx,xxx

Annual OTE:

$xxx,xxx

CEO

Overall Weighting

Metric Weight 1. Financial Metrics (45%): Total Bookings Q109 @ $x,xxx,xxx (See matrix) Total Bookings 2009 @ $x,xxx,xxx (See matrix) FYE Cash Balance @ $x,000,000 and CFBE @ $x.xm (Subjective: 0-200%)

Annual Bonus

5.0% 15.0% 25.0%

$xxx,xxx $xxx,xxx $xxx,xxx

2. Funding / 2010 Viability Secured (25%): New round closed with outside lead investor (Subjective: 0-200%)

25.0%

$xxx,xxx

3. Product: 2 High Quality Releases/Staffing Optimized (15%) Release X and Release Y delivered on plan (See attached) (Subjective: 0-200%)

15.0%

$xxx,xxx

4. Strategic Partership Leverage (15%)*: Milestone: Points Earned: LOI Signed 2.5 pts Contract signed 2.5 pts Rollout 2.5 pts * Bonus = (Total pts x .01)/.15 * ($xx,000)

15.0%

$xxx,xxx

Total Earned at 100% Achievement

100.0%

$xxx,xxx

Plan Design: Effective Date -- January-December 2009. Bonus paid by January 31, 2010. Participant must be employed by Company through the end of the year to be eligible for the incentive payment. Bookings equal the gross (prior to partner commissions and referral fees) dollar value of all subscriptions + services that can be invoiced immediately. Subscription amounts that can not be invoiced until some later period will not count as a Booking until such time as they can be invoiced. Payout schedule for bookings is attached. Bonus will be calculated using the % Bonus Rate shown for the Total Bookings threshold level achieved. Nothing in this Plan shall be construed to create or imply the creation of any employment contract between the Company and any Employee, or to create a guarantee of employment for any specific period of time.  Incentive Bonus payments will be subject to applicable taxes and withholding.  The Board reserves the right to change the plan based on the needs of the business       

Acknowlegement that the Incentive Plan has been reviewed:

Signature

Date