Exhibit 10.23

EXECUTIVE INCENTIVE COMPENSATION PROGRAM – FY 2012

Purpose

The FY2012 Executive Incentive Compensation Program is one part of the total compensation plan for eligible executives (“Participants”) and complements other components of an executive’s total target compensation (TTC), which also includes base salary and other employee benefits. The purpose of the ICP is to reward employees for the achievement of the Company’s objectives and their individual MBO’s as outlined in this document.

Plan Year

This document represents the FY2012 Executive Incentive Compensation Program (“the Plan” or “ICP”). The Plan year begins on January 1, 2012 and ends on December 31, 2012.

Eligibility

All members of the executive management team reporting to the CEO are eligible to participate in the Plan,. Eligibility to participate commences as of January 1, 2012 or the executive’s 2012 hire date if the executive is hired during the Plan Year after January 1, 2012. For executives hired in 2012, bonus payments will be pro-rated based on months worked during the Plan Year. For Plan purposes, executives hired before the 15^th of the month will be eligible for partial credit for that month. Executives hired on or after the 15^th of the month will not receive any credit for that month. Executives hired on or after October 1, 2012, are not eligible to participate in the Plan for FY2012.

Plan Philosophy

Plan Components

Participating executives are eligible to receive an annual bonus payout based on the company’s performance for the fiscal year. Twenty percent (20%) of the Plan is based on a non-discretionary formula based upon company achievement of the Processing Efficiency goal. Forty percent (40%) of the Plan is based on meeting or exceeding Subscription Revenue, and forty percent (40%) of the Plan is based on Annual Contract Value Subscription Targets of newly acquired customers (“ACV”); for this component of the Plan, the executive’s actual payout will be based on his/her performance against individual MBO’s determined by the executive and his/her manager.

Performance Targets and Weighting

The Plan is based upon and funded by the aggregated achievement of annual Subscription Revenue (defined as GAAP subscription revenue recognized for the entire year, excluding support, services and training revenue) and ACV (defined as the minimum committed average annual Production Subscription Fee for the first three years of the customer’s subscription for Demandware’s eCommerce Platform Services; ACV does not include nonrecurring support, services and training fees under those agreements, divided by the number of months in the term). Production Subscription Fee means those fees paid for the Production Subscription per a duly executed Order Form. The specific targets for each Plan component shall be as determined by the Compensation Committee.

The funding of each objective will vary as follows:

Payout Determination

The targeted incentive compensation is determined by the Company. Actual payout may be less, equal to, or greater than the targeted amount based on two factors: 1) the Company’s performance against the objectives set forth above, and 2) individual executive performance against MBO’s established by the executive and his/her manager. Note that MBO performance cannot exceed 100%. If the total MBO performance for the year is 65% or below, the executive is ineligible for any payment under this Plan. The executive’s overall achievement of MBO’s for the full year will be used to determine the actual payout amount for all components with the exception of the Processing Efficiency objective, which is a non-discretionary payment provided that the targets are achieved as outlined above.

Payment

Earned 2012 ICP payments will be paid during the first quarter of 2013. Any executive who is on a Performance Improvement Plan as of December 31, 2012 will not qualify or be eligible for any payment under this ICP, including the discretionary and non-discretionary components of the Plan.

Eligibility

Administration