EX-99.1 2 b69067atexv99w1.htm EX-99.1 2008 EXECUTIVE MANAGEMENT COMPENSATION PLAN (AS AMENDED) exv99w1
 

EX-99.1
2008 EXECUTIVE MANAGEMENT COMPENSATION PLAN
ART TECHNOLOGY GROUP, INC.
2008 EXECUTIVE MANAGEMENT COMPENSATION PLAN
     The following executive officers of ATG are eligible to participate in this Plan, subject to the execution by the executive officer of the Terms and Conditions of Participation set forth as Exhibit A to this Plan. The target bonus payout for the indicated periods and the applicable performance metrics for each executive office are as follows:
                 
        TARGET BONUS    
        PAYOUT (AT 100%    
        OF PERFORMANCE    
TITLE   PERIOD   METRICS)   PERFORMANCE METRICS
 
                
CFO
  Annual   $ 120,000     30% ATG Adjusted Operating Profit;
30% ATG Adjusted Revenue;
20% Cash Management;
20% MBOs;
 
                
SVP GLOBAL
SALES
  Quarterly   $50,000/quarter   40% ATG Adjusted Revenue;
35% Bookings (defined below) (License and On Demand);
25% Billings (defined below) (eStara and CleverSet);
 
                
 
  Annual   $50,000 annual
($250,000 total
Target) 		  100% Adjusted Operating Profit.
 
                
SVP MARKETING
  Annual   $ 100,000     20% ATG Adjusted Operating Profit;
20% ATG Adjusted Revenue
15% Bookings (License and On Demand)
15% Billings (eStara and CleverSet);
30% MBOs.

 

 

                 
        TARGET BONUS    
        PAYOUT (AT 100%    
        OF PERFORMANCE    
TITLE   PERIOD   METRICS)   PERFORMANCE METRICS
 
                
SVP Services
  Quarterly   $20,000/quarter   30% Worldwide PS/Ed/OnDemand Margin (Percent);
30% Worldwide PS/Ed/OnDemand Revenue;
20% CSS Revenue;
20% eStara and CleverSet Revenue
 
                
 
  Annual   $20,000 annual
($100,000 total
target) 		  100% Gross Services Margin
(Dollars)
 
                
SVP HUMAN
RESOURCES
  Annual   $ 90,000     30% ATG Adjusted Operating Profit;
30% ATG Adjusted Revenue;
15% Employee Satisfaction
25% Effectiveness of HR Initiatives
 
                
SVP PRODUCTS &
TECHNOLOGY
  Annual   $ 120,000     30% ATG Adjusted Operating Profit;
30% ATG Adjusted Revenue;
40% MBOs.
 
                
SVP CORPORATE
DEVELOPMENT
  Annual   $ 100,000     25% ATG Adjusted Operating Profit;
25% ATG Adjusted Revenue;
50% MBOs

 

 

1.   No bonus will be paid for the annual period unless ATG achieves, at minimum, 50% of its Adjusted Operating Profit goal for 2008.
 
2.   “ATG Adjusted Revenue” means GAAP revenue plus the change in net deferred license revenue for the period (2008 over 2007).
 
3.   “ATG Adjusted Operating Profit” means ATG Adjusted Revenue less cost of sales and operating expenses, but excludes option expensing, restructuring charges and non-cash income tax expenses / benefits, if applicable.
 
4.   “Bookings” means ATG license revenue recognized plus change in deferred ATG license revenue and the value of new customer OnDemand contracts up to 12 months in duration.
 
5.   “Billings” means monthly customer invoicing for eStara and CleverSet
 
Change in Compensation for Executives
                                 
Executive   2007 Base Salary   2007 Target Bonus   2008 Base Salary   2008 Target Bonus
 
                                
CFO
    230,000     $ 100,000       250,000       120,000  
 
                                
SVP Sales
    220,000       200,000       230,000       250,000  
 
                                
SVP Products &
Technology
    240,000       100,000       250,000       120,000  
 
                                
SVP Human
Resources
    200,000       80,000       210,000       90,000  

 

 

TERMS AND CONDITIONS OF PARTICIPATION
ATG 2008 EXECUTIVE MANAGEMENT COMPENSATION PLAN
1.   No incentive payments will be paid unless you are actively employed by ATG at the time incentive payments are made, or unless otherwise provided in a separate written agreement between you and ATG. Payments are generally made six to twelve weeks following the end of the applicable period if approved financial statements are available.
 
2.   These payments are offered as an incentive, but are not guaranteed. ATG (including the Compensation Committee of ATG’s Board of Directors) reserves the sole right to make changes to any and all terms and conditions of the 2008 Executive Management Compensation Plan due to changes in business conditions, performance of the executive or the Company or other factors, at the sole discretion of the Compensation Committee of ATG’s Board of Directors.
 
3.   ATG reserves the right to make goal substitutions to meet changing business requirements. There may be additional deliverables not explicitly detailed in the attached MBO listing, as specified by ATG Management.
 
4.   Participation in the 2008 Executive Management Compensation Plan is no guarantee of participation in any subsequent plans. The Company reserves the sole right to designate participants, and to make any and all changes to a participant’s yearly plan.
 
5.   The final payout amount to the executive officers, except the chief executive officer, must be approved by the Compensation Committee of ATG’s Board of Directors, including payout of any amounts over 100% of target and partial payments when targets are partially achieved. The final payout amount to the Chief Executive Officer will be recommended to the Board of Directors by the Compensation Committee of ATG’s Board of Directors and approved by the ATG Board of Directors. Additional factors may be considered in determining the final payout amount.
 
6.   In all circumstances, the amount and timing of any incentive payment are solely within the discretion of the Compensation Committee of ATG’s Board of Directors and the ATG Board of Directors, regardless of the provisions of the 2008 Executive Management Compensation Plan.
     
Agreed by:
    
 
    
 
   
 
   
 
    
Executive Signature
  Date
 
    
 
   
 
   
 
    
CEO Signature
  Date