The Compensation Committee of the Board of Directors of Digital infrastructure provider Equinix Inc (NASDAQ:EQIX) has approved the Equinix 2021 Annual Incentive Plan. The plan applies to eligible employees of Equinix, including executive officers.

Under the 2021 Plan, an annual target bonus amount is assigned to each executive officer. The annual target bonus amounts under the 2021 Plan will be a percentage of each executive’s base salary, ranging from 90% to 150% depending on the executive’s position. To the extent earned, the bonus will be payable in fully vested restricted stock units (RSUs) under Equinix’s 2020 Equity Incentive Plan.

As in 2020, this payment in fully vested RSUs for 2021 allows Equinix to retain more cash in the business to fund its investments.

According to Equinix, the plan also aligns the executives’ incentives with its shareholders’ interests. For executives, awards are capped at the target payout, with no greater payout for over-performance.

The actual annual bonus is determined on the basis of Equinix’s performance against revenue (weighted at 50%) and adjusted funds from operations per share of common stock outstanding (weighted at 50%) goals, based on the Board-approved operating plan, adjusted from time to time throughout the plan year.

Performance may be adjusted for the impact of one-time events affecting the operating plan, including but not limited to expansion projects or acquisitions not contemplated in the approved operating plan, and for the impact of fluctuations in foreign currencies against the foreign currency rates applied in the operating plan.

For every 1% below the goal for revenue, the revenue portion of the bonus pool shall be reduced by 20%, and for every 1% below the goal for AFFO/Share, the AFFO/Share portion of the bonus pool shall be reduced by 20%. No bonuses will be paid if revenue and AFFO/Share are 95% or less of the goals.

In addition, at its discretion, the Compensation Committee may reduce or eliminate the actual award that otherwise would be payable.

According to the 2020 plan, non-employee directors receive automatic grants of RSUs. At last year’s annual meeting of stockholders, each non-employee director who continued to be a director after that meeting was automatically granted an award of RSUs. For fiscal 2019, the grant date fair value of these annual awards was $250,000.

The automatic RSU awards become fully vested on the earlier of (i) the first anniversary of Equinix’s immediately preceding annual meeting of stockholders or (ii) in the case of a non-employee director not standing for reelection, the date of the first annual meeting of stockholders held subsequent to the date of grant. In addition, each non-employee director receives a prorated award of RSUs upon joining the Board with a grant date fair value of $250,000.

The following table sets forth all of the compensation awarded to, earned by or paid to each non-employee director who served during fiscal year 2019.