Brocade tries to rev it up…
Late Friday, when, as footnoted regulars know, the Friday night dump opens for business, we came across this interesting 8-K filed by Brocade Communications (BRCD), a former high-flying stock back in the day.
While the filing itself had some seemingly routine raises — bumping CEO Michael Klayko’s salary up to $800,000 from the $775,000 he had been making, for example, because an outside compensation consultant thought it made sense after looking at what competing companies were paying — there was something else that caught our eye: a new incentive plan called the “Rev it Up” plan. We immediately thought of some theme music — Elvis Costello’s “Pump it Up” came to mind, since the words could very easily be changed. (There’s also the Vixen song that wouldn’t require any modification). And we wondered, did the comp consultant come up with the name and, if so, how much were they paid to do so?
Here’s a snip describing the plan from the filing:
Under the terms of the Rev It Up Plan, certain officers and each of Messrs. Fairfax and Wall would be eligible to earn a target cash payout equal to 25% of their respective annual base salary based upon the achievement of certain minimum revenue and non-GAAP operating performance targets. The actual payout is subject to upward or downward adjustment depending on the Company’s actual performance compared to the performance targets. The performance targets mirror the Company’s Senior Leadership Plan for fiscal year 2012 for these participants, which are as follows: revenue (weighted at 60%); non-GAAP operating income (weighted at 30%); and individual performance based on individual or departmental objectives (weighted at 10%).
Since the actual plan wasn’t filed, all we have is this brief description in the 8-K. More details will undoubtedly be available in Brocade’s proxy filing, but that’s not going to be filed until late February.
Of all the crazy names for ways we’ve come across to pay people in filings — and trust me, in 8+ years of reading SEC filings as closely as we have, there have been a lot — this one definitely ranks among the goofiest. As we poked around the web a bit, we were surprised to find that the top result when we entered the phrase “Rev It Up” was this site — something called “Rev it Up. Full Throttle for God”.
Which made us wonder if the compensation consultant who came up with the name did a quick Google search before suggesting it to Brocade’s board.
Image source: eBay