Skyworks Solutions, Inc. (SWKS, Financial) has unveiled its Fiscal Year 2025 Executive Incentive Plan, as approved by the Compensation Committee of its Board of Directors on December 12, 2024. This plan is designed to reward senior management, including named executive officers, based on the achievement of specific corporate performance metrics during the fiscal year.
The Incentive Plan outlines cash incentive awards that are contingent upon meeting predetermined revenue and non-GAAP operating income targets. These targets are set annually by the Compensation Committee. The plan specifies that the company's Chief Executive Officer (CEO) and its Senior Vice President and Chief Financial Officer are eligible for cash incentives amounting to 160% and 100% of their base salaries, respectively, should the company meet its target metrics. Furthermore, there is potential for these executives to earn up to twice their target awards if the company surpasses its performance goals.
Additionally, other senior executives, including the Senior Vice President of Technology and Manufacturing, Senior Vice President of Sales and Marketing, and Senior Vice President, General Counsel and Secretary, are eligible for incentives equaling 80% of their base salaries, with the possibility of doubling their awards if performance metrics are exceeded.
At the conclusion of the fiscal year, the Compensation Committee will evaluate the company's performance against the set metrics, review the CEO's recommended payouts, and approve any awards. The committee also retains the discretion to issue company stock in lieu of cash for any part of the awards.
This strategic move by Skyworks Solutions aims to align executive compensation with company performance, thereby driving growth and value creation for shareholders.
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