Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On March 31, 2009, the Compensation Committee approved the Market Leader, Inc.
2009 Management Variable Cash Compensation Plan (the "Plan"), which provides for
incentive payments to executive officers upon achievement of specified revenue
and operational performance goals. Incentive payments are based on a percentage
of base salary for each executive officer ranging from 29% to 39% of base salary
if the targets in the plan are achieved to 45% to 60% of base salary if the
highest level stretch targets are met. If the Company's performance is between
plan and top-level target, bonus targets may fall between the percentages set
forth above. Similar to 2008, the Committee approved reduced bonus payout
targets because of the ongoing business challenges that are expected to result
in lower forecasted financial results than in previous years. The Compensation
Committee will assess achievement of the stated goals under the Plan, determine
and approve incentive payments for each executive officer and may modify
incentive payment amounts or award vehicles and differentiate between executives
in their discretion. Executives will not receive a bonus under the Plan if
performance targets are not met.
