EXHIBIT 10.24
Glu Mobile Inc.
Summary of Executive Bonus Plan
This is a summary of the executive (bonus plan that was created in 2004 and approved by Glu’s board
of directors at a special meeting dated
February 11, 2004.
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| Eligibility: |
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All V.P. and above level executives, not including the CEO. |
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| Bonus Level: |
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Target bonus levels are specified to be a fixed percentage of the
executive’s yearly base salary at the time the bonus is awarded. The exact
percentage is specified in the executive’s employment offer letter, or as
subsequently modified by the CEO. |
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| Frequency: |
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Awarded on a quarterly basis, for any quarter in which the company
achieves at least 90% of its quarterly corporate objectives. Pro-rated for
each quarter (e.g., an executive with a target bonus of 20% would be eligible
for a bonus up to 5% of his/her yearly base salary assuming the company
achieved its corporate objectives). |
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| Components of Bonus: |
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An executive’s total bonus is composed of three parts: |
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1. |
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40% of the bonus is awarded based on the company’s achieving
at least 90% of its quarterly Revenue Plan |
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2. |
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40% of the bonus is awarded based on the company’s achieving
at least 90% of its quarterly Net Income Plan |
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3. |
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20% of the bonus is awarded based on the executive’s
achieving his/her individual quarterly objectives |
Attainment of Corporate Objectives. There are
“cliffs” associated with the attainment of
the company’s quarterly corporate objectives. For components #1 and #2, the executive receives:
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40% of that component if the company achieves at least 90% of its plan |
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70% of that component if the company achieves at least 95% of its plan |
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100%+ of that component if the company achieves at least 100% of its plan |
Attainment of Individual Quarterly Objectives. Independently of
the company’s quarterly
objective, the executive may receive up to 100% of component #3 based on the executive’s
achievement of his/her quarterly individual objectives. The executive’s manager is responsible for
determining the percentage of this component (0% — 100%+) to be awarded.
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| Example: |
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Executive A has an annual salary of $150K with a target bonus of 20% ($30,000).
His quarterly target bonus is thus $7,500.
In Q2 2006, the company achieves 101% of its Revenue plan, and 93% of its Net Income
plan. The executive’s manager also concludes that executive A has achieved 80% of his
individual objectives. The executive would receive the following amount:
(100% x 40% x $7,500) + (40% x 40% x $7,500) + (80% x 20% x $7,500) = $5,400 |
