Dell 2006 Annual Report Download - page 137

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at these levels: The percentage of shares earned is prorated within the ranges below based on performance level.
Threshold Target Maximum
Performance Goals:
Revenue (in billions) $57.6 $61.5 $64.3
(Year-over-year revenue growth) 3% 10% 15%
Minimum operating margin 6% 6% 6%
Shares Earned
(Percent of Initial Shares Granted) 0% 100% 120%
Since none of the performance goals were achieved during Fiscal 2007, no PBU shares were earned by any of the
executive officers.
• 2003 and 2006 Long-Term Cash Incentive Bonus Awards — The Named Executive Officers, other than Mr. Dell, Mr. Carty,
and Mr. Rollins, are eligible for payments under these previously approved programs. Because we did not achieve the
threshold targets for corporate performance specified in the programs, no amounts were earned under either program for
Fiscal 2007. Amounts earned under these programs for prior years will be paid in Fiscal 2008 or Fiscal 2009.
• 2007 Long-Term Cash Incentive Awards — In March 2006, the Leadership Development and Compensation Committee
implemented the 2007 Long-Term Cash Award Program. All executive officers employed at that time other than Mr. Dell
and Mr. Rollins were eligible for cash engagement awards under this program. As Dell has become recognized for our high-
quality leaders, our executives have increasingly become targets for recruitment to key positions in other organizations.
This program is intended to better balance our existing long-term compensation programs between cash and equity
awards, and to enhance the overall holding power of our compensation package.
These cash awards vest and will be paid out in increments over a four-year period and represent compensation in addition
to targeted market pay positioning for each executive officer. These awards are contingent only upon continued
employment through the annual vesting period, which ends in March of each fiscal year. If the executive officer's
employment terminates, other than due to death or permanent disability, the executive forfeits all subsequent payouts. The
value of the award for each executive officer was determined at the recommendation of the Chairman and the Chief
Executive Officer based on an assessment of the holding power of current long-term incentives for each executive officer,
retention risk, and each individual's impact on the organization.
The following table sets forth the awards and vesting periods for each of the Named Executive Officers under this program.
Neither Mr. Dell nor Mr. Rollins was eligible for these cash awards. Mr. Carty joined the company as an executive in
January 2007 and thus did not receive an award under this program.
Fiscal 2008 Fiscal 2009 Fiscal 2010 Fiscal 2011
Named Executive Officer Total Grant Vesting Vesting Vesting Vesting
Mr. Bell $ 4,000,000 $ — $ 1,200,000 $ 1,300,000 $ 1,500,000
Mr. Felice 5,000,000 800,000 1,000,000 1,400,000 1,800,000
Mr. Schneider(a) 8,000,000 — 2,666,667 2,666,667 2,666,666
Mr. Parra(a) 4,000,000 — 1,200,000 1,300,000 1,500,000
(a) Both Mr. Schneider and Mr. Parra resigned from the company before the first vesting date and, therefore, forfeited these amounts.
Benefits and Perquisites
Our policy is to provide limited benefits and perquisites for executive officers. While perquisites do not constitute a significant
part of executive officer compensation, the Leadership Development and Compensation Committee believes that limited
benefits and perquisites are generally a typical component of
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