This excerpt taken from the CPHD DEF 14A filed Mar 26, 2007.
Target Levels for Performance-based Awards.
On December 18, 2006 the Compensation Committee approved an executive incentive bonus program for the 2007 fiscal year. If Cepheid achieves at least 80% of a corporate objective related to operating performance (the Financial Objective), Cepheid will fund a bonus pool, with specific awards based on the level of achievement of the Financial Objective and achievement of individual management bonus objectives. If Cepheid achieves less than 80% of the Financial Objective, no amounts will be paid under the bonus program. United States-based employees at the Vice President level and above, including Cepheids executive officers, will participate in the program. For each executive officer in the above table, the Target represents amounts payable at achievement of 100% of the Financial Objective, and the Maximum represents amounts payable at achievement of 120% of the Financial Objective (Maximum Bonus), in each case assuming such executives full achievement of his or her individual management bonus objectives.