Attached files
file | filename |
---|---|
10-Q - FORM 10-Q - Ancestry.com Inc. | c16272e10vq.htm |
EX-31.2 - EX-31.2 - Ancestry.com Inc. | c16272exv31w2.htm |
EX-10.4 - EX-10.4 - Ancestry.com Inc. | c16272exv10w4.htm |
EX-32.1 - EX-32.1 - Ancestry.com Inc. | c16272exv32w1.htm |
EX-10.2 - EX-10.2 - Ancestry.com Inc. | c16272exv10w2.htm |
EX-10.1 - EX-10.1 - Ancestry.com Inc. | c16272exv10w1.htm |
EX-31.1 - EX-31.1 - Ancestry.com Inc. | c16272exv31w1.htm |
EX-10.3 - EX-10.3 - Ancestry.com Inc. | c16272exv10w3.htm |
EXHIBIT 10.5
Ancestry.com Inc.
Description of 2011 Performance Incentive Program
Description of 2011 Performance Incentive Program
On January 31, 2011, the Compensation Committee of the Board of Directors of Ancestry.com Inc (the
Company) approved financial performance objectives under the Companys Performance Incentive
Program to serve as the basis for determining the Company-wide bonus pool to be paid under the
program for 2011.
The Compensation Committee confirmed that two corporate performance measures are to be used in
calculating the pool for awards for 2011: revenue and adjusted EBITDA. Both measures will be
weighted equally.
For revenue, no pool funding occurs below 98% of target revenue; at 100% of target revenue, the
pool is funded at 100% of the target bonus pool attributable to revenue. The maximum funding of
120% of the target bonus pool attributable to revenue occurs at 103.3% of target revenue. Results
between 98% and 100% of target revenues, and between 100% and 103.3% of target revenues, are
interpolated.
For adjusted EBITDA, no pool funding occurs below 95% of target adjusted EBITDA, the pool is funded
at 80% of the target bonus pool attributable to adjusted EBITDA at 95% of target adjusted EBITDA.
The maximum funding of 120% of the target bonus pool attributable to adjusted EBITDA occurs at
106.1% of target adjusted EBITDA. Results between 95% and 100% of target adjusted EBITDA, and
between 100% and 106.1% of target adjusted EBITDA, are interpolated. The Company defines adjusted
EBITDA as net income (loss) plus net interest (income) expense; income tax expense; non-cash
charges including depreciation, amortization, impairment of intangible assets and stock-based
compensation expense; and other (income) expense.
Under the Performance Incentive Program for 2011, each of the two performance measures are reviewed
separately in determining the funding of the bonus pool. For example, if the Company achieves less
than 98% of target revenues but achieves 95% of target adjusted EBITDA, then employees will be
eligible for a pool funded with zero allocation from the revenue target, but 80% of the adjusted
EBITDA target (or 40% of the target bonus pool).
Individual payments made from the pool to each participant in the Performance Incentive Program,
including the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), and the other
executive officers, will be based on each executive officers target bonus percentage of salary, as
such amount may be adjusted by (1) the achievement of individual performance goals, (2) individual
performance ratings, (3) business unit performance, and (4) such other factors as the Board of
Directors or Compensation Committee may determine.