Pegasystems Inc. (NASDAQ:PEGA) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02.
(e)On December20, 2017, the Compensation Committee of the Board of Directors of Pegasystems Inc. (the “Company”) approved the 2018 Section16 Officer/FLT Member Corporate Incentive Compensation Plan (the “Incentive Plan”) for the executive officers of the Company (the “Executive Officers”).
The Incentive Plan covers the period from January1, 2018 through December31, 2018 (the “Incentive Period”). The Incentive Plan is designed to establish a pool of funds to be available for making bonus payments to the Executive Officers if the Company achieves certain performance goals (the “Corporate Goals”) during the Incentive Period. For purposes of the Incentive Plan, the Corporate Goals consist of financial goals weighted at 70% and strategic goals weighted at 30%. The percentage achievement of the Corporate Goals (the “Funding Percentage”) determines the extent to which the Incentive Plan is funded, except that if the Funding Percentage is less than 70% then the Incentive Plan will not be funded at all. If the Funding Percentage is greater than 50%, the Company may fund an enhanced incentive as determined by the Board in its discretion. Once the Funding Percentage has been determined, the actual incentive payment for each Executive Officer may be adjusted to reflect the individual’s level of contribution to the Company’s strategic goals.
For 2018, the Company will permit each Executive Officer to elect to receive a portion of his or her 2018 bonus equal to 50% of his or her target Incentive Plan payment in the form of restricted stock units (“RSUs”) instead of in cash. For this purpose, RSUs will be calculated based upon 85% of their fair market value on the grant date. If elected, the equity grant will occur during the open trading period following the public release of the Company’s 2017 financial results and is subject to vest 50% on or about the Incentive Plan payout date in 2019 for all participants. Vesting is conditioned upon threshold funding of the Incentive Plan and, with respect to each Executive Officer, on his or her continued active employment with the Company. If these conditions are not met, the equity grant cannot be exercised by the Executive Officer and will expire.
The foregoing summary description of the Incentive Plan is qualified in its entirety by reference to Exhibit 99.1 to this Current Report on Form 8-K.
| Item 5.02. | Financial Statements and Exhibits |
99.12018 Section 16 Officer/FLT Member Corporate Incentive Compensation Plan
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PEGASYSTEMS INC ExhibitEX-99.1 2 d510379dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 2018 Section 16 Officer/FLT Member Corporate Incentive Compensation Plan (CICP) Employee Name: «Fname» «Lname» Business Unit: «BusinesUnit» General Purpose & Structure This Section 16 Officer/FLT Member Corporate Incentive Compensation Plan (Plan) is designed to provide you with the potential for variable pay based on the achievement of annual financial and strategic business objectives of Pegasystems Inc. (Pega) and your individual performance. Based on your role,…To view the full exhibit click here
About Pegasystems Inc. (NASDAQ:PEGA)
Pegasystems Inc. develops, markets, licenses and supports software applications for marketing, sales and onboarding, and customer service needs. The Company also offers software applications built on the Pega 7 platform. Its software is designed to assist clients in building, deploying, and evolving enterprise applications. Its applications and platform intersect with and encompass several traditional software markets, including Customer Relationship Management (CRM); Business Process Management (BPM); Business Rules Management Systems (BRMS); Dynamic Case Management (DCM); Decision Management, which includes Predictive and Adaptive analytics, and the Vertical Specific Software (VSS) market of industry solutions and packaged applications. It provides implementation, consulting, training, technical support and hosting services to facilitate the use of its software. The Company offers its services to financial, healthcare, insurance, manufacturing, life sciences and other markets.