JAKKS PACIFIC INC 8-K

What Happened
JAKKS Pacific (filed 8-K on March 27, 2026) announced the Compensation Committee has established the 2026 Annual Performance Bonus criteria for CEO Stephen G. Berman and CFO John L. Kimble. Bonuses are tied to company EBITDA performance for fiscal 2026 and the Compensation Committee retains discretion to adjust targets or percentages for extraordinary items and certain transaction-related fees.

Key Details

• CEO Stephen G. Berman: 2026 base salary $1,875,000; maximum bonus 300% of salary = $5,625,000.
• CFO John L. Kimble: 2026 base salary $632,700; maximum bonus 200% of salary = $1,265,400.
• EBITDA tiers (performance bands) and corresponding bonus percentages of 2026 salary:
  • EBITDA $35,587,508–$45,587,507 → CEO 25%, CFO 25%
  • EBITDA $45,587,508–$55,587,507 → CEO 100%, CFO 100%
  • EBITDA $55,587,508–$65,587,507 → CEO 200%, CFO 150%
  • EBITDA > $65,587,507 → CEO 300%, CFO 200%
• EBITDA is calculated before including bonuses as an expense and before one-time non‑recurring costs for Board‑approved initiatives. If EBITDA falls between targets, the Additional Performance Bonus is determined by linear interpolation. The Compensation Committee may adjust targets or apply negative discretion for special items or transaction fees.

Why It Matters
This filing shows executive pay for 2026 is explicitly tied to EBITDA performance, creating a clear financial goal that can materially affect potential cash bonus payouts. Investors should note the specific EBITDA thresholds and the Committee’s discretion to adjust targets—both factors that affect how much cash compensation leadership may realize depending on FY2026 operating results.