UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
____________
FORM
8-K
____________
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
WEBEX
COMMUNICATIONS, INC.
(Exact
name of registrant as specified in its charter)
|
Delaware |
|
77-0548319 |
|
(State
or other jurisdiction |
(Commission |
(IRS
Employer |
|
of
incorporation) |
File
Number) |
Identification
No.) |
3979
Freedom Circle
(Address
of principal executive offices)
Telephone:
(408) 435-7000
(Registrant's
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2).
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425).
[ ]
Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR
240.14a-12(b)).
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b)).
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c)).
Item
1.01. Entry into a Material Definitive Agreement
On April
25, 2005 the Compensation Committee of the Board of Directors of
WebEx Communications, Inc. (“WebEx” or “Company”) established the
performance measures for the WebEx executive cash bonus plan (“Plan”). The Plan
is not set forth in a written agreement. The Plan
covers WebEx’s chief executive officer and its other named executive officers
including WebEx’s chief operating officer. The Plan also covers other WebEx
executives who directly report to either the chief executive officer or the
chief operating officer.
Each
participant in the Plan is assigned an annual target bonus which, depending on
the executive, is between 20% and 100% of the executive’s 2005 base
salary. The Plan sets Company performance benchmarks for (i) revenue, (ii)
profits, (iii) service quality, and (iv) customers’ usage of WebEx services. The
relative weighting of these four factors in the determination of a participant’s
annual bonus is 40%, 20%, 20% and 20%, respectively. Bonuses are paid quarterly
with respect to revenue, profits and service quality benchmarks. Payment of the
bonus with respect to the fourth quarter will include the usage component along
with the other three quarterly components.
In
addition to the benchmarks, the Plan sets forth minimum achievement levels in
each of the four Company performance areas. If a minimum achievement level is
not attained in one of the areas, then that component of the bonus payment
computation will be zero. In addition, if the minimum achievement level for the
profits factor is not achieved for a given quarter, there will be no bonus
payment to participants for that quarter with respect to any of the components,
regardless of attainment of minimum achievement level in the other areas. If the
Company achieves or exceeds the minimum in one or more areas including profits,
the bonus amount payable to each participant will depend on the Company’s actual
achievement relative to the four benchmarks. A bonus in excess of a
participant’s annual target bonus is possible if there is significant
over-achievement relative to the benchmarks, with the annual maximum bonus
payable under the Plan being 200% of a participant’s target bonus amount.
The
Compensation Committee has the ability to reset the four benchmarks for
unanticipated events that might affect the benchmarks, such as merger and
acquisition activity. Bonuses for sales executives are partially based on
the Plan; bonuses payable to sales executives are based 30% on the Plan and 70%
based on achievement of each executive’s sales quota.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| |
|
|
| |
WEBEX COMMUNICATIONS,
INC. |
|
|
|
| Date: April 28,
2005 |
By: |
/s/ Subrah S.
Iyar |
| |
Name: Subrah S. Iyar |
| |
Title: Chief Executive
Officer |
