A Competitive, Global Approach to Compensation

The Brocade global Total Compensation Package is designed to provide all employees worldwide with value-added programs and services. At Brocade, total compensation is a combination of base pay, incentives (bonus program and recognition awards), stock, and benefits. Given Brocade's aggressive objectives, the competitive environment, and the need for high levels of performance, the following are key components of this compensation philosophy:

• Provide pay levels equivalent to those of industry leaders. Ensure and sustain a competitive position by targeting total compensation at levels that attract, retain, and motivate talent.
• Enable employees to share in the company's financial results and share in the ownership of the company through a Total Compensation Package.
• Employ a dual-career technical ladder.
• Support open communication of the compensation program.

Brocade believes strongly in rewarding performance. We offer a competitive cash compensation program, which includes base pay, variable compensation for all employees, quarterly bonuses, and commissions for sales personnel. To support our competitive, performance-based pay practices, Brocade makes every effort to ensure that our salaries are both externally competitive and internally equitable.