Baker Hughes 2004 Annual Report Download - page 125

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The฀Compensation฀Committee฀is฀comprised฀of฀five฀non-
employee฀independent฀directors฀and฀is฀responsible฀for฀seeing฀
that฀the฀senior฀executives฀of฀our฀company฀are฀compensated฀
effectively฀in฀a฀manner฀that฀is฀consistent฀with฀our฀compensation฀
strategy,฀internal฀equity฀considerations฀and฀competitive฀practice.
The฀Committee:
•฀ reviews฀our฀compensation฀strategy฀to฀ensure฀that฀manage-
ment฀is฀rewarded฀appropriately฀for฀its฀contributions฀to฀
growth฀and฀profitability,฀and฀that฀executive฀compensation฀
supports฀both฀company฀and฀stockholder฀interests;
•฀ reviews฀our฀long฀term฀equity฀incentive฀plans฀(and฀makes฀
grants฀thereunder),฀employee฀retirement฀income฀plans,฀the฀
employee฀thrift฀plan฀and฀the฀employee฀stock฀purchase฀plan;฀
•฀ annually฀approves฀revisions฀to฀our฀annual฀salary฀increase฀
guidelines฀and฀sets฀bonus฀goals;
•฀ approves฀salary฀and฀bonus฀awards฀to฀key฀executives;
•฀ recommends฀incentive฀compensation฀and฀stock฀award฀
plans฀for฀approval฀by฀stockholders;
•฀ periodically฀reviews฀management฀succession฀plans;฀
•฀ annually฀reviews฀levels฀of฀stock฀ownership฀by฀officers฀in฀
accordance฀with฀our฀stock฀ownership฀guidelines;
•฀ prepares฀an฀annual฀report฀to฀stockholders฀which฀is฀pub-
lished฀in฀our฀proxy฀statement฀(contained฀herein)฀and฀is฀
available฀on฀our฀website.
The฀Finance฀Committee฀is฀comprised฀of฀five฀non-
employee฀independent฀directors฀and฀is฀responsible฀for฀review-
ing฀and฀monitoring฀the฀financial฀planning฀and฀actions฀taken฀
that฀are฀related฀to฀the฀financial฀structure฀of฀our฀company.฀
The฀Committee:
•฀ reviews฀and฀approves฀for฀recommendation฀to฀the฀board฀
any฀public฀equity฀offerings,฀public฀debt฀offerings฀or฀other฀
debt฀arrangements,฀issuances฀of฀warrants,฀options฀or฀฀
convertible฀or฀exchangeable฀securities,฀loans฀to฀third฀฀
parties฀and฀dividend฀policy฀changes;
•฀ periodically฀reviews฀our฀activities฀with฀credit฀rating฀฀
agencies฀and฀monitors฀key฀financial฀ratios;
•฀ annually฀reviews฀our฀policies฀regarding฀approval฀levels฀฀
for฀capital฀expenditures;
•฀ periodically฀reviews฀our฀policy฀and฀controls฀with฀regard฀฀
to฀derivatives฀and฀foreign฀exchange฀exposure;
•฀ annually฀reviews฀our฀insurance฀programs.
The฀Governance฀Committee฀is฀comprised฀of฀five฀non-
employee฀independent฀directors฀and฀is฀responsible฀for฀all฀฀
governance฀related฀matters฀overseen฀by฀the฀board,฀including฀
recruiting฀and฀recommending฀candidates฀for฀election฀to฀the฀
board,฀reviewing฀the฀criteria฀for฀board฀membership฀against฀
the฀current฀needs฀of฀the฀board,฀recommending฀directors’฀
fees฀and฀monitoring฀compliance฀with฀the฀Corporate฀Gover-
nance฀Guidelines.฀
The฀Committee:
•฀ annually฀reviews฀the฀structure฀of฀the฀board฀and฀the฀skills฀and฀
experiences฀of฀its฀members,฀to฀assure฀that฀the฀proper฀skills฀
and฀diversity฀of฀experience฀are฀represented฀on฀the฀board;
•฀ assesses฀the฀board฀contributions฀of฀the฀directors฀whose฀
terms฀expire฀at฀the฀next฀annual฀meeting฀and฀recommends฀
to฀the฀board฀if฀the฀director฀should฀be฀re-nominated;
•฀ annually฀reviews฀board฀compensation฀and฀compen-
sation฀methods;
•฀ reviews฀outside฀directorships฀in฀other฀companies฀by฀฀
Baker฀Hughes’฀senior฀officers;
•฀ reviews฀and฀recommends฀directors’฀fees.
฀Committee*
Directors฀ Age฀ Executive฀ Audit/Ethics฀ Governance฀ Finance฀ Compensation฀ Employee฀ Independent฀ Director฀Since฀ Class**
Chad฀C.฀Deaton฀฀ 52฀฀ C฀ ฀ ฀ ฀ ฀฀ X฀฀ ฀ 2004฀฀ III
Larry฀D.฀Brady฀ 62฀ ฀ ฀ ฀ M฀ M฀ ฀ X฀ 2004฀ II
Clarence฀P.฀Cazalot,฀Jr.฀฀ 54฀฀ M฀ ฀M฀฀ C฀ ฀ ฀ ฀ X฀฀ 2002฀฀ II
Edward฀P.฀Djerejian฀฀ 65฀ ฀฀ ฀ M฀ ฀฀ M฀฀ ฀ X฀฀ 2001฀฀ I
Anthony฀G.฀Fernandes฀฀ 59฀ ฀฀ M฀ ฀฀ C฀฀ ฀ ฀ X฀฀ 2001฀฀ II
Claire฀W.฀Gargalli฀฀ 62฀ ฀฀ ฀ ฀ M฀ ฀M฀฀ ฀ X฀฀ 1998฀฀ III
James฀A.฀Lash฀฀ 60฀ ฀฀ M฀ ฀฀ M฀ ฀ ฀ ฀X฀฀ 2002฀฀ III
James฀F.฀McCall฀฀ 70฀ ฀฀ C฀ ฀M฀฀ ฀ ฀ ฀ X฀฀ 1996฀฀ III
J.฀Larry฀Nichols฀฀ 62฀ ฀฀ M฀ ฀฀ M฀฀ ฀ ฀ X฀฀ 2001฀฀ II
H.฀John฀Riley,฀Jr.฀฀ 64฀ M฀ ฀฀ M฀฀ ฀ C฀฀฀ ฀ X฀฀ 1997฀฀ I
Charles฀L.฀Watson฀฀ 54฀ M฀ ฀ ฀M฀฀ ฀ M฀฀ ฀ X฀฀ 1998฀ I
*฀ M=Member;฀C=Chairman
**฀Subject฀to฀proposed฀charter฀and฀bylaw฀amendments฀described฀in฀our฀proxy฀statement฀(contained฀herein).
2004฀Form฀10-K฀฀฀฀฀75