Pegasystems sets executive incentive plan for 2025

WALTHAM, MA - Pegasystems Inc . (NASDAQ:PEGA), a leader in software for customer engagement and operational excellence, has established an incentive plan for its executive officers for the year 2025, as disclosed in an 8-K filing with the Securities and Exchange Commission. The announcement comes as the company, now valued at $9.03 billion, demonstrates strong market performance with a 113.85% return over the past year.

On Monday, the Compensation Committee of the Board of Directors approved the 2025 Section 16 Officer/ALT Member Corporate Incentive Compensation Plan (Incentive Plan). This plan outlines the potential bonuses for executive officers based on the achievement of specific corporate goals within the year. According to InvestingPro data, PEGA has maintained strong financial performance with 9.28% revenue growth in the last twelve months and a "GREAT" overall financial health score.

The Incentive Plan, effective from January 1, 2025, through December 31, 2025, is contingent on the company reaching certain financial and strategic targets. The financial goals account for 75% of the evaluation, while strategic goals make up the remaining 25%. The plan will only be funded if at least 70% of these objectives are met. Should performance exceed 100%, the Board may authorize additional incentives at its discretion.

Executive officers have the option to receive up to 50% of their bonus in the form of restricted stock units (RSUs), calculated at 85% of the fair market value on the grant date. The RSUs will vest around the payout date in 2026, provided the Incentive Plan is sufficiently funded and the individual remains actively employed with satisfactory performance. If these conditions are not met, the RSUs will expire.

This announcement follows the company’s commitment to align executive compensation with corporate performance and shareholder interests. The detailed terms of the Incentive Plan are available in the Exhibit 99.1 of the 8-K filing.

Investors and stakeholders of Pegasystems can view the full details of the Incentive Plan in the company’s recent SEC filing. This incentive structure highlights the company’s focus on performance-driven rewards and its strategic direction for the upcoming year. With the company’s next earnings report scheduled for February 12, 2025, investors can access comprehensive analysis and 13 additional ProTips through InvestingPro’s detailed research reports, which provide deep-dive analysis of PEGA’s performance metrics and growth potential.

In other recent news, Pegasystems Inc., a global software company, has been selected by Team Serco (LON:SRP) to modernize the United Kingdom (TADAWUL:4280)’s Armed Forces Recruiting Service. The company’s digital platform is set to support the Royal Navy, the British Army, and the Royal Air Force by offering a unified recruitment solution. This initiative is expected to improve the efficiency of the assessment process and enhance the candidate experience.

In another development, Pegasystems announced the appointment of Rohit Ghai, a seasoned leader in digital transformation, to its board of directors. Ghai’s extensive experience in the enterprise software industry and his current role as CEO of a global cybersecurity company, RSA, are expected to provide valuable insights.

KeyBanc recently gave an Overweight rating to Pegasystems, showing confidence in the company’s growing customer base and its GenAI Blueprint product. The company’s refined go-to-market strategy is expected to contribute to sustained double-digit Free Cash Flow growth in the near to mid-term. These are just a few of the recent developments for Pegasystems.

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