EXHIBIT 10.1
Veeco Instruments Inc.
2009 Management Bonus Plan
February 27, 2009
· Profit Sharing: 25% of Participant’s Bonus Target
· Based on Total Veeco EBITA results
· Calculated and paid quarterly
· Payable when EBITA > 5% of Revenue (subject to review/reduction for Q3’09 and Q4’09, at the discretion of the Compensation Committee)
· Suspended for Q1’09 and Q2’09 (representing the forfeiture of 12.5% of total target bonus)
· Management Bonus: 75% of Participant’s Bonus Target
· Metrics (measured and calculated independently)
· 50% Individual Performance Objectives
· 25% Net Cash from Operations
· 25% Revenue
· Individual Performance
· Awards will be determined and payable on an annual basis
· Based on 3 to 5 “SMART” objectives developed for each participant.
· Awards range from 0% (for failing to meet minimum expectations) to 100% (for fully achieving the objective).
· Awards for Individual Performance are payable even if awards for financial elements are not payable
· Financial Performance
· Awards based on Revenue and Net Cash from Operations, each as compared to targets established at the beginning of the two semi-annual performance periods
· Financial targets set, measured and paid semi-annually:
· First Half 2009: January 2009 to June 2009
· Based on the approved Veeco 2009 Business Plan
· Weighted 40%
· Second Half 2009: July 2009 to December 2009
· Established at the beginning of the second half performance period and based on the Veeco 2009 Business Plan and the then current forecast for Second Half performance
· Weighted 60%
· Metrics established for the following organizations:
· Corporate
· Process Equipment
· Data Storage/MOCVD
· MBE
· Metrology Group
· Optical/Industrial Business Unit (70% BU; 30% MI Group for Revenue Metric)
· AFM Business Unit (70% BU; 30% MI Group for Revenue Metric)
· Solar (Hybrid approach based on bookings, revenue and expense management)
