ADT 2007 Annual Report Download - page 70

of the fair value of equity-based compensation over the applicable vesting period for the award.
Assumptions used in the calculation of these compensation costs are included in Note 19 to the
Company’s audited consolidated financial statements included in the Company’s Form 10-K for the
fiscal year ended September 28, 2007. However, the table above does not reflect equity
compensation expense net of a forfeiture assumption. A description of the material terms of each
type of award appears in the narrative following the Grants of Plan-Based Awards Table.
(4) Non-Equity Incentive Plan Compensation: The amount reported in column (g) for each officer
reflects annual cash incentive compensation for fiscal year 2007, which was based on Company and
individual performance in fiscal year 2007 and paid in the first quarter of fiscal year 2008. Annual
incentive compensation is discussed in further detail in the Compensation Discussion and Analysis
under the heading Elements of Compensation—Annual Incentive Compensation.
(5) Change in Pension Value and Nonqualified Deferred Earnings: The amount reported in column
(h) for Messrs. Breen and Lytton reflects the aggregate increase in the actuarial present value of
their respective accumulated benefits under all pension plans during the year, determined using
interest rate and mortality rate assumptions consistent with those used in the Company’s financial
statements. The amounts in column (h) include those which the officer may not currently be
entitled to receive because such amounts are not vested. Information regarding these plans is set
forth in further detail under the Pension Benefits Table.
(6) All Other Compensation: The amount reported in column (i) for each named executive officer
represents: cash perquisites; premiums paid by the Company for insurance for the benefit of the
named executive officer and, in some cases, the named executive officer’s spouse; costs related to
personal use of Company aircraft; tax gross-up payments; Company contributions to 401(k) plans
and similar plans of the Company and its subsidiaries that are non-qualified; and other
miscellaneous benefits. The following table sets forth information regarding the perquisites and
other personal benefits provided by the Company to the named executive officers for 2007.
All Other Compensation Table
Supplemental Executive Insurance
Benefits(b)
Individual Group Personal Retirement Total All
Variable Supple- Supple- Use of Plan Other
Cash Universal mental mental Long- Company Tax Severance Contribu- Compensa-
Named Executive Perquisite(a) Life Disability Disability Term Care Aircraft(c) Gross-Up(d) Benefits(e) tions(f) Miscellaneous(g) tion
Current Officers
Edward D. Breen ........ $70,000 $50,405 $32,415 $2,410 $15,428 $ 249,431 $330,200 — $155,729 $ 5,500 $ 911,518
Christopher J. Coughlin ..... $70,000 $28,262 $15,580 $2,410 $21,210 — — — $ 82,291 $ 10,000 $ 229,753
John Evard ............ $44,016 $20,798 $15,229 $2,410 $18,343 — $ 23,692 — $ 36,398 $ 5,262 $ 166,148
Carol Anthony Davidson ..... $42,600 $17,207 $18,527 $2,410 $21,568 — $ 23,542 — $ 33,752 $ 7,105 $ 166,711
Naren Gursahaney ....... $51,500 $10,109 $12,598 — $19,274 — $ 10,315 — $ 65,606 $ 5,960 $ 175,362
Former Officers
William B. Lytton ........ $52,500 $32,279 $15,709 $2,410 $20,855 $ 23,184 $268,348 $6,286,029 $ 52,917 — $6,754,231
David E. Robinson ....... $56,453 $13,557 $12,032 $2,410 $16,228 — $107,458 $3,476,131 $ 63,473 $163,467 $3,911,209
(a) Cash Perquisites reflect an annual cash perquisite payment equal to the lesser of (i) 10% of the
executive’s base salary or (ii) $70,000. Payments are made quarterly and are adjusted to reflect
changes in salary. As a result, Mr. Gursahaney received less than 10% of his base salary at fiscal
year end and Messrs. Lytton’s and Robinson’s payments were prorated to reflect their termination.
(b) Supplemental Executive Insurance Benefits reflect premiums paid by the Company for insurance
benefits for the executive and, in the case of long-term care, for spouses as well. These benefits are
provided to certain Senior Officers of the Company upon the approval of the Compensation
Committee.
(c) For security purposes, the Chief Executive Officer is encouraged to use Company-owned aircraft
for personal travel. Mr. Lytton was entitled to specified personal usage allotments pursuant to his
employment agreement. Other named executive officers are permitted to use Company-owned
aircraft in exceptional circumstances if expressly approved by the Board or Mr. Breen. For
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