CEVA Unveils 2025 Executive Bonus Plan and Equity Awards

CEVA, Inc. (NASDAQ: CEVA) recently disclosed the approval of its 2025 Executive Bonus Plan targeting Chief Executive Officer (CEO) Amir Panush, Chief Financial Officer Yaniv Arieli, and Chief Operating Officer Michael Boukaya. The compensation package, authorized by the Compensation Committee on February 10, 2025, aims to spur executives towards achieving financial and strategic targets outlined in the company’s annual operating plan. The program’s quantitative breakdown includes specified revenue and non-GAAP operating profit targets for 2025, ensuring a balanced approach to goal achievement.

The bonus structure mandates that between 40% to Target and Linear Calculation Above 90% of Target are established for the 2025 Revenue Target and 2025 Operating Profit Target. Additionally, the plan incorporates internal business metrics, with part of the bonus outcomes left to the discretion of the Committee. Payment of any bonuses is slated for 2026 in a lump-sum cash format, after accounting for applicable payroll taxes and withholdings.

Furthermore, the company introduced an Equity Award program on the same day, granting time-based restricted stock units to the executive team, including the CEO, CFO, COO, and Chief Commercial Officer. These RSU awards follow a vesting schedule over three years and are tied to the Corporation’s 2011 Equity Incentive Plan, pending stockholder approval of related plan amendments.

Moreover, in a move to revamp its non-employee director compensation policy, the CEVA Board approved significant adjustments to align more closely with peer group practices. The modifications include upping the annual cash retainer fees for Board members, committee chairs, and committee members, along with enhancing the equity compensation scheme for continuing non-employee directors.

In a bid to drive performance, the enhanced incentive structure offers Chief Commercial Officer Gweltaz Toquet potential bonus components based on formulaic revenue targets, with strategic account bonuses tied to specific intellectual property agreements. The Toquet 2025 Plan, structured to incentivize target achievements, is set to boost performance output.

CEVA’s moves signal a strategic focus on aligning key personnel incentives with the company’s growth trajectory and objectives. The innovative bonus plan and equity awards intend to bolster executive performance and shareholder value creation, securing a path for sustained success within the competitive market landscape.

Please note that certain competitive-sensitive metrics and terms from the incentivization plans have been withheld due to potential future competitive harm, as disclosed by CEVA Inc.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read CEVA’s 8K filing here.

CEVA Company Profile

CEVA, Inc provides silicon and software IP solutions to semiconductor and original equipment manufacturer (OEM) companies worldwide. Its 5G mobile and infrastructure products include Ceva-XC vector digital signal processors (DSPs) for 5G handsets, 5G RAN, and general-purpose baseband processing; PentaG-RAN, an open ran platform for base station and radio; and PentaG2 – 5G NR modem platform for UE, as well as for non-handset 5G vertical markets, such as fixed wireless access, industry 4.0, robotics, and AR/VR devices.