Five9, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Five9, Inc. on February 9, 2015, reporting events that occurred on February 3, 2015. The filing details the approval of performance targets for the 2015 Bonus Program applicable to the Company's Section 16 officers for the fiscal year ending December 31, 2015.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period. It focuses exclusively on the structure of executive compensation targets.
Material Changes and Compensation Structure
The Compensation Committee approved a bonus program where funding is determined by Company financial performance and individual officer performance. Key structural details include:
- Performance Weighting: Generally 75% Company financial performance and 25% individual performance. Exceptions apply for Michael Burkland (100% Company financial) and Dan Burkland (60% sales, 40% Company financial).
- Financial Metrics: Company performance is based on 80% revenue targets and 20% adjusted EBITDA targets.
- Payout Thresholds: No cash payout occurs if revenue or adjusted EBITDA targets are achieved below 90%.
- Maximum Payouts: Revenue targets can yield up to 150% of the allocated bonus (at 125% achievement). Adjusted EBITDA targets can yield up to 180% of the allocated bonus (at 140% achievement).
- Clawback/Reduction: If adjusted EBITDA is less than 80% of the target, the maximum revenue bonus payout is capped at 100%.
Executive Target Bonus Levels
| Officer Name | Annual Target Bonus (USD) | % of Base Salary |
|---|---|---|
| Michael Burkland | $320,000 | 60% |
| Barry Zwarenstein | $147,000 | 40% |
| Moni Manor | $129,000 | 44% |
| Dan Burkland | $247,000 | 78% |
| Scott Welch | $92,000 | 28% |
Guidance, Outlook, and Risks
The filing does not contain forward-looking financial guidance, management commentary on market conditions, or specific risk factors beyond the inherent performance risks tied to the bonus program thresholds.
Key Facts for Investor Verification
- Verify the specific revenue and adjusted EBITDA targets set for 2015, as these are not disclosed in this filing but are critical for determining executive payouts.
- Monitor future filings to see if the Company achieves the 90% threshold required to trigger any cash bonus payouts.
- Note the specific weighting differences for Michael Burkland and Dan Burkland compared to other officers.
- Confirm that the filing does not report any changes in debt, liquidity, or actual financial results for the period.