EXHIBIT 10.24

 

EXECUTIVE STAFF BONUS

PLAN DESCRIPTION

FY04

Revised March 25, 2003

 

ELIGIBLE POSITIONS:

Members of Executive Leadership Team—ELT (Executive Vice Presidents)

Members of Product Leadership Team—PLT (Sr. Vice Presidents)

Members of Operations Management Team—OMT (Sr. Vice Presidents)

 

Bonus Plan Description

 

   

Bonus pool will be established based on a percentage of the base salary, as
follows, which creates the Target Bonus. The basic premise is that the higher
one is in the organization, the more their total compensation is “at risk”.

A.

 

TARGET BONUS AMOUNTS:

        

CEO:

  

100% of base salary (weighted on total Company Performance).

   

PLT Members:

  

60% of base salary, ( weighted on total Company Performance).

   

Executive Vice Presidents (ELT):

  

75% of base salary (weighted on total Company Performance) with the exception of
the Services executive who is weighted 50% on Company Performance and 50% on
Services’ Performance.

   

Sr. Vice Presidents (OMT):

  

50% of base (weighted on total Company Performance).

B.

 

BONUS POOL THRESHOLD

        

The bonus pool will be funded by BEA Systems actual Contribution for the bonus
periods, assuming that a threshold of 97% of the operating plan is achieved for
Contribution and 97% of the operating plan is achieved for Revenue. The pool
will be funded by Contribution ( up to 50% of Contribution) and will be paid out
as outlined below.

C.

 

PAYOUT CRITERIA

        

The bonus is comprised of a Revenue and a Contribution component. 50% of the
payout is based on Contribution achievement and 50% of the payout is based upon
Revenue achievement and the above thresholds must be met for a payout on either
component.

 

For the Company Performance calculation:

 

For ELT Members, Revenue equals bookings. For all other executives, Revenue
equals recognized revenue for the period.

 

Calculation of the bonuses will be based on the following formula and should the
plan be exceeded at either level (Contribution or Revenue), then the following
accelerators, up to 150% of bonus target, will apply:

 

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Actual Achievement

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: % Achievement

Operating Plan

    

% Achievement—Contribution

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Payout

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less  than 97%

97% (threshold)

>97% – 100%

>100%

  

0

1% = 1. 00X

1% = 1. 00X

1% = 1.5X up to 150% of target

% Achievement—Revenue

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Payout

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less  than 97%

97% (threshold)

>97% – 100%

>100%

  

0

1% = 1. 00X

1% = 1. 00X

1% = 1.5X up to 150% of target

 

   

For example, if achievement for Revenue is 2X operating plan and achievement for
Contribution is 1 X the operating plan, bonus will be paid at 1.5X target as the
total bonus.

 

For the Services’ President, where their bonus targets are weighted on Total
Company Performance and Business Unit Performance, a separate calculation will
be done for each entities’ performance (Company and Business Unit ). The total
bonus paid out cannot exceed 150% of either target (Company or Business Unit
Performance), and under-performance in one, either Company or Business Unit,
cannot be supplemented by the other component.

 

For example, if achievement for the Company component is 2.5x and achievement
for the Business Unit component is 1X, the payout will be 1.5X and 1X
respectively.

D.

 

PAYOUT FREQUENCY

        

A semi-annual payout schedule and performance cycle will be observed .

E.

 

PROVISIONS THAT APPLY TO ALL BONUSES

 

  1.   Should the total pool, funded by 50% of Contributions, not be large
enough to disburse amounts to all participants as indicated above, then the
employees’ base salary, as a percentage of total base salaries of all
participants, will be used to prorate and distribute the pool.

 

  3.   The Executive must be employed an entire quarter to receive an allocation
for the period and be employed at the time of the payout to receive any bonus.
An employee may be removed from the plan at any time, at management discretion.

 

  4.   BEA Management reserves the right to modify this plan at any time, in its
sole discretion. Should an acquisition or significant business initiative change
the revenue and/or contribution operating plan, the plan, for the purposes of
this bonus, may be modified and a new plan will go into effect at the start of
the quarter following this initiative. This document does not create a contract
of employment, nor does it change one’s “at-will” employment status, nor does it
provide a guarantee of a bonus in any BEA geography.

 

  5.   An Executive can be in only one bonus plan or variable plan at any time.
Should an employee transfer from this plan to another bonus plan, their
participation will cease and there will be no

 

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pro-ration for partial quarters/year. Additionally, changes to one’s base or
bonus target %, as a result of merit increases, equity adjustments or
promotions, will take effect in the next full bonus period, unless the change
occurs on the first day of the new bonus period (i.e May 1)

 

EXAMPLE

 

Vice President with an annual salary of $200,000 has a bonus target of 50%, or
$100,000. Semi-annual target is $50,000. Plan targets are examples only.

 

BONUS CALCULATION

 

Revenue Impact:

  

Plan

  

$200,000,000

    

Actual

  

$220,000,000

    

% achievement

  

110%

Contribution Impact:

  

Plan

  

$5,000,000

    

Actual

  

$5,250,000

    

% achievement

  

105%

Bonus from Revenue:

  

$25,000 at 1X achievement (100%)

    

$ 3,750 at 1.5X achievement

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$28,750

Bonus from Contribution:

  

$25,000 at 1X achievement (100%)

    

$ 1,875 at 1.5X achievement

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$26,875

    

Total Bonus for Period:

  

$55,625

    

 

 

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