Exhibit 10.S



 







EXHIBIT 10.S




FY06
Executive Incentive Plan





	1.	 	Purpose: The FY06 Executive Incentive Plan (the”FY06 Plan”) is designed to reward key
management employees for achieving certain financial and business objectives.
	 
	2.	 	Plan Period: The FY06 Plan covers the period from October 1, 2005 through September 29,
2006.
	 
	3.	 	Eligibility: This program applies to the Chief Executive Officer and his direct reporting
senior executives. Other key employees may be added based upon the recommendation of the
Chief Executive Officer and subsequent approval of the Compensation Committee. Those
employees not covered by this plan may be eligible for other programs established by Skyworks.
	 
	4.	 	Incentive Targets: Participants are eligible to earn a percentage of their base salary for
attaining certain performance objectives. Nominal, target and stretch incentive awards have
been established as follows (shown as a percentage of the participant’s base salary):





	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Incentive At	 	Incentive At	 	Incentive At
	Name	 	Nominal	 	Target	 	Stretch
	CEO
	 	 	30	%	 	 	100	%	 	 	200	%
	CFO, VP Sales,
Business Unit
General Managers
	 	 	20	%	 	 	60	%	 	 	120	%
	Other VPs
	 	 	20	%	 	 	50	%	 	 	100	%
	Special Participants
	 	 	10	%	 	 	40	%	 	 	80	%







	5.	 	FY06 Metrics: The performance metrics for FY06 are as follows:





	 	 	 	 	 	 	 
	Measurement Criteria	 	Nominal	 	Target	 	Stretch
	Corporate Revenue

	 	REDACTED
	 	REDACTED
	 	REDACTED
	Corporate Operating Income1

	 	REDACTED
	 	REDACTED
	 	REDACTED
	Corporate Gross Margin Note: GM Q4 Exit Rate

	 	REDACTED
	 	REDACTED
	 	REDACTED
	Quality (RMA$ reduction)2

	 	REDACTED
	 	REDACTED
	 	REDACTED






The individual metrics on the prior page are for normal operations and any
extraordinary events and/or charges will be brought to the Compensation Committee
for review and approval.




Metrics will be weighted based on corporate performance for FY06 as follows:





 




			
	1	 	After incentive.
	 
	2	 	Percent reduction in return material
authorization (RMA) dollars relative to FY05 actual of $REDACTED.





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	 	 	 	 	 	 	Corporate	 	 	 	 
	 	 	Corporate	 	Gross	 	 	 	 
	 	 	Operating	 	Margin	 	Corporate	 	 
	Group	 	Income3	 	%4	 	Revenue5	 	Quality6
	CEO, Finance, Legal,
Investor Relations,
Human Resources
	 	 	40	%	 	 	20	%	 	 	20	%	 	 	20	%
	Quality
	 	 	30	%	 	 	30	%	 	 	N/A	 	 	 	40	%
	Operations
	 	 	40	%	 	 	40	%	 	 	N/A	 	 	 	20	%
	Sales, Business Units
	 	 	20	%	 	 	20	%	 	 	40	%	 	 	20	%







	6.	 	How the Plan Works: Upon completion of the Fiscal Year, the Chief Executive Officer (“CEO”)
will provide the Compensation Committee (“Committee”) with recommendations for incentive award
payments for participants of the plan and will request approval of actual amounts to be paid
to each participant. The Committee will determine the appropriate distribution of the
authorized incentive pool based on input from the CEO.
	 
	7.	 	Administration: Actual performance between the Nominal and Target metrics will be paid on a
linear sliding scale beginning at the Nominal percentage and moving up to the Target
percentage. The same linear scale will apply for performance between Target and Stretch
metrics. In order to fund the incentive plans and insure the overall Company’s financial
performance, the following terms apply.






	 	•	 	No incentive award will be paid unless the Company meets its Nominal operating income
goal after accounting for any incentive award payments.
	 
	 	•	 	Skyworks’ CEO, subject to approval by the Compensation Committee, retains discretion
to award above Stretch.






	8.	 	Taxes: All awards are subject to federal, state, local and social security taxes. Payments
under this Plan will not affect the base salary, which is used as the basis for Skyworks’
benefits program.







 




			
	3	 	Total operating income, excluding interest
and all other non-operating income and expenses such as foreign currency gain
or loss.
	 
	4	 	Net revenue less cost of goods sold
(manufacturing costs, license fees and obsolescence).
	 
	5	 	Net annual revenue.
	 
	6	 	Percent reduction in return material
authorization (RMA) dollars.





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