Dolby Laboratories has announced its 2025 Executive Bonus Plan for eligible employees, including executive officers and other officers of the company and its subsidiaries. The bonus amounts will be determined based on the achievement of goals for non-GAAP operating income, revenue, and other metrics, as determined by the Compensation Committee.
The target bonuses for executives will be set as a percentage of their base salary at the end of the fiscal year or performance period, as approved by the Compensation Committee. The actual bonus for the Chief Executive Officer and other eligible executives will be calculated based on multiplying their base salary by the target bonus percentage and then adjusting it to reflect the extent to which the company meets the non-GAAP operating income, revenue, and other goals.
The specific measurable company revenue, non-GAAP operating income, and/or other targets are typically established near the commencement of the 2025 fiscal year or performance period and must be approved by the Compensation Committee prior to payment.
The bonus plan is also subject to the terms and conditions of the 2020 Stock Plan, with a maximum bonus amount set for each "Service Provider" as defined in the 2020 Stock Plan.
Furthermore, the payments and awards made or granted under the plan are subject to reduction, cancellation, forfeiture, or recoupment pursuant to the Company’s Policy on Recoupment of Incentive Compensation, as amended and restated effective August 1, 2023.
The market has reacted to these announcements by moving the company's shares -2.0% to a price of $71.73. For the full picture, make sure to review Dolby Laboratories's 8-K report.
