Based on the achievement of the applicable quarterly performance metrics, and consistent with the doubling of revenues in fiscal 2021 over fiscal 2020 and the large increase in sales territories, Mr. Ban earned commission-based cash incentives totaling an aggregate $270,470, which represents 181% of his annual target commission amount. In fiscal 2021, Mr. Ban received quarterly incentive payments of $38,290, $76,640, $77,370, and $78,170.
The actual cash incentives earned by each named executive officer for fiscal 2021 are set forth below in the Summary Compensation Table under the column entitled “Non-Equity Incentive Plan Compensation.”
LONG-TERM INCENTIVES
As described above, the third and largest primary component of our executive compensation program is long-term equity incentives. The organization and compensation committee designed this long-term incentive opportunity to motivate executive officers to achieve multi-year strategic goals and to deliver sustained, long-term value to stockholders. Our long-term incentives create a strong link between payouts and performance and align our executive officers’ interests with the interests of our stockholders. Long-term equity incentives promote retention, as executive officers will only receive value if they remain employed by us over the required term, and they foster an ownership culture among our executive officers by making executive officers stockholders with a personal stake in the value they intend to create.
The organization and compensation committee intends to make grants of long-term incentive awards annually. Special, one-time awards are used in limited circumstances, including, as may be necessary to attract, retain and motivate experienced and well-qualified executive officers, as recognition of an increase in the scope of an executive’s responsibilities or major accomplishments. In January 2021, the committee approved special equity awards to Mr. Phillips in connection with his hiring as our Senior Vice President, General Counsel, Secretary, and Chief Compliance Officer, including (1) a stock option to purchase 15,000 shares of the Company’s common stock, and (2) an award of 2,275 restricted stock units.
Equity Vehicle. Historically, and consistent with the market practice of similar, newly-public companies in our industry, our long-term incentive compensation has consisted solely of stock options.
Beginning with fiscal 2022, the organization and compensation committee approved a change in the mix of long-term incentive compensation to be granted to executives. In particular, the committee determined that long-term incentive compensation would be granted as a mix of stock options and revenue-based PSUs (each constituting 50% of the target LTI value, respectively). The committee determined that this mix was appropriate given the current stage of our business taking into consideration the relative growth of the Company as we continue to execute our business strategy. The organization and compensation committee believes that the addition of PSUs encourages focus on long-term stockholder value creation through growth and increase in stock price over time, aligns compensation with key indicators of the success of our strategy, and promotes retention through long-term performance achievement and vesting requirements.
Our PSUs have a three-year performance period and will be settled in stock. The actual number of PSUs that will vest will be based on the Company’s cumulative revenue during the three-year performance period. The organization and compensation committee selected this metric because it focuses on revenue growth, which is a critical driver of our success. The addition of the PSUs also reinforces the pay-for-performance nature of the long-term incentive grants and the executive compensation program overall. The organization and compensation committee also believes it is important to continue to utilize stock options because it believes that stock options are very effective tools for motivating executives to increase long-term value and align our executives' interests with those of our stockholders.
In future years, the committee will continue to evaluate and select the form and mix of long-term incentive compensation (which may include stock options, restricted shares, restricted share units, performance share units, or other long-term incentives) provided to our executive officers that it believes best accomplishes the goals discussed above.