Compensation Systems

Compensation Systems in 2001

Compensation package consisted of three
components :
Base Salary : we set to be at or
slightly below the industry median
Stock Option : The first years the
joined CSI, they got stock options
o The fist four years at 25% per
year and expired 10 years
after granting
A Bonus : 5-15% of an employee
base salary. The measures reflected
company wide achievements in three
areas
o Receipt of new OE
commitments.
Two largest of these
programs : 20% each,
employee would earn
40% of their target
bonus
Three other larges
program would add
10%
Two smaller program
weight 5%
o Execution of existing business,
assessed in two elements
Shipment volumes to
two major customer
Shipment quality
o Building Infrastructure, would
earn 20% of their target
bonuses
Overall, performance range were set to
allow bonus assignment to range from 0
215%
Actual Performance in 2001
Employee earning 117.9% of their target
bonus.
New OE commitments accounted for
50%
Execution for 32.9%
Quality 15%
Certification 20%

Compensation Systems in 2002

The performance area linked to bonus

awards were changed.
Financial Target : 0-60% (they focus
increasing revenues and reduced
operating losses)
OE Commitment : 0 105%
Quality : -15% - 20%
Building Infrastructure : 0- 20%
The performance target set 100%, total
possible target 205%