exv10w62



 






Exhibit 10.62




2005 Executive Compensation Plan



This document details the elements of the compensation for the fiscal year 2005. This plan is valid
for the following executives:




CEO

CFO

CMO

SVP, R&D

SVP, HR

General Counsel

GVP, Customer Support

GVP, Corporate Development


Plan Date: January 1, 2005 – December 31, 2005



Purpose: The purpose of the executive compensation plan is to motivate and reward the executives of
Business Objects to profitably grow the company and achieve corporate goals. The plan calls for
semi-annual payout against quarterly operations goals and semi-annual individual MBOs.



Base salary:

$000,000 annually (paid over 12 months)



Variable salary:

$000,000 annually



The variable salary is based on three components:





	1)  	Company License Bookings and Service Revenue (LBSR)
	 
	2)  	Company Worldwide Performance Percentage (PP) – This is the % operating margin based on LBSR
	 
	3)  	Personal goals (MBOs)




Component 1

Company License Bookings and Service Revenue (LBSR) per the Company’s accepted terms for bookings
and revenue recognized for maintenance and PSO per the Company’s revenue recognition policy. The
following payout model is used when considering actual performance License Booking and Service
Revenue (LBSR) and Company Worldwide Performance Percentage (CPP) to be calculated each quarter and
paid semi-annually.




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LBSR Perf vs. Plan
	 	 	< 85	%	 	 	85	%	 	 	90	%	 	 	100	%	 	 	110	%	 	 	> 110	%
	LBSR Bonus
	 	 	0	%	 	 	1	%	 	 	50	%	 	 	100	%	 	 	150	%	 	 	150	%





Component 2

Corporate Performance Percentage includes maintenance and PSO revenue minus divisional and
corporate expenses divided by local booking and service revenue to determine the Corporate
Performance Percentage. The following payout model is used when considering actual performance
against the plan targets by quarter listed below.




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CPP Perf vs. Plan
	 	 	< 70	%	 	 	70	%	 	 	85	%	 	 	100	%	 	 	125	%	 	 	> 125	%
	CPP Bonus
	 	 	0	%	 	 	1	%	 	 	50	%	 	 	100	%	 	 	150	%	 	 	150	%






1









 





The calculation to determine the Company Performance is as follows:

Company Performance = 1/2 LBSR Bonus + 1/2 CPP Bonus



At the Board’s election, the quarterly operating targets by which bonuses are measured can be reset
on a semi-annual basis.



Component 3

MBOs are calculated against Individual Objectives set for the half and paid semi-annually and
calculated as follows:




Variable = MBO*(Company Performance)*Bonus Target

Therefore:

August 15, 2005 Payout

H1 Bonus = H1MBO*(Q1CpnyPerformance*Q1Bonus Target +Q2Cpny Performance*Q2Bonustarget)

February 15, 2006 Payout

H2 Bonus = H2MBO*(Q3CpnyPerformance*Q3Bonus Target +Q4Cpny Performance*Q4Bonustarget)


This payout will be calculated to be revenue neutral for all executives.




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	USD in millions	 	 	 	 	 	 	 	 	 	 	 	 
	2005 Company Plan	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 
	Revenue
	 	TBD	 	TBD	 	TBD	 	TBD
	Operating Income
	 	TBD	 	TBD	 	TBD	 	TBD





The plan is effective for 2005-plan year and may be changed or modified at the discretion of the
Compensation Committee and Board of Directors.



If an executive leaves the Company at the end of Q1 or Q3, then a prorated bonus will be paid based
on the Components 1 and 2 above and upon a pro-ration of Component 3.



Please sign a copy of this plan as acceptance and return to Jonathan Schoonmaker.




	 	 	 
	 
	 	 
	 

	 	 
	Executive

	 	Bernard Liautaud
	

	 	Chairman & CEO
	 
	 	 
	 
	 	 
	 

	 	 
	Date

	 	Date







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