Pegasystems Unveils Corporate Incentive Compensation Plan for 2025

By Tamara Parker • Saturday, February 08 10:15 • Permanent Link

Pegasystems Inc. has released its Section 16 Officer/ALT Member Corporate Incentive Compensation Plan (CICP) for the year 2025. The plan is designed to provide variable pay based on the achievement of annual financial and strategic business objectives of the company as well as individual performance.

The CICP is funded based on Pegasystems Inc.'s attainment of financial and strategic goals, with financial goals weighted at 75% and strategic goals at 25%. If the company attains 100% of its Corporate Goals, the CICP will be funded at the full target level. However, if attainment falls below the threshold of 70%, the CICP will not be funded, and no incentive compensation will be paid.

Employees have the option to elect to receive 50% of their Target Incentive Opportunity in restricted stock units (RSUs). For example, if an employee elects to receive 50% of their $10,000 Target Incentive Opportunity in equity, and the closing price of Pega common stock is $40.00 per share, they would receive a grant for 147 RSUs.

The cash payout for the plan will be made in the subsequent year on or before March 15th for U.S. and Canadian employees, and March 31st for all other countries. The Compensation Committee reserves the right to either increase or decrease the corporate funding and/or individual payout amounts at its sole discretion.

To be eligible for the CICP, employees must be active, full-time Section 16 Officers/ALT members. Participants hired after October 1st of the current year will need the Chief Executive Officer’s approval to participate.

The plan also includes legal provisions, stating that each eligible employee may only participate in one Corporate Incentive Compensation Plan with respect to any given calendar year, and the Plan will remain in effect only for the plan year indicated. Pegasystems reserves the sole right to modify, revoke, suspend, or terminate the Plan at any time.

As a result of these announcements, the company's shares have moved 0.2% on the market, and are now trading at a price of $105.47. Check out the company's full 8-K submission here.

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