This excerpt taken from the VRSN DEF 14A filed Apr 10, 2006.
VeriSign has established a bonus plan that is designed to reward individuals who are key contributors to the success of the company. The plan provides executive officers and other employees the opportunity to earn a bonus based upon the achievement of specified corporate goals and individual and team objectives. The Committee annually reviews and approves the corporate goals and objectives relevant to the Chief Executive Officer under the bonus plan and reviews decisions respecting the grant of cash bonuses under the plan to the other executive officers of VeriSign. The executive management team administers the plan for all other employees. As part of the Committees annual review of compensation in 2005, the Committee examined the competitive positioning of bonus payments compared to the available market data. For 2005, the Chief Executive Officers target bonus was established based at 110% of base salary. For executive officers, other than the Chief Executive Officer, target bonuses range from 50% to 60% of base salary.
Each year, the Committee, working with the executive management team, establishes the corporate goals for bonus measurement purposes and determines weightings for each element. The executive management team is responsible for ensuring that actual results are confirmed before they are applied against the bonus plan for payment purposes. All targets and objectives are aligned with the business plan for the fiscal year and monitored by VeriSigns corporate finance and accounting department. Individual performance is measured relative to the individuals personal contribution to the success of the organization. This element is objective and tied to individual documented objectives for the bonus year. All targets and related objectives are defined and measured on an annual basis.
For 2005, corporate goals were established for VeriSigns executive officers in the following areas:
For 2005, actual performance exceeded the goals set for the plan. Consequently, the executive officers, other than the Chief Executive Officer, earned on average approximately 128% of the target bonuses.
For 2006, the target bonus level for executive officers will be similar to the target bonus levels set in 2005. Executive bonuses will be based upon the achievement of specific corporate goals and individual and team objectives that have been established by the Committee.