GNC 2008 Annual Report Download - page 133

Table of Contents
we are using valid comparisons. We also use internal value comparisons; however, we do not have any specific point system or rating structure
for internal values.
Annual Incentive Compensation. Our Chief Executive Officer is entitled to an annual performance bonus pursuant to the terms of his
employment agreement. Prior to January 1, 2008, our other Named Executive Officers were entitled to annual performance bonuses pursuant
to the terms of their employment agreements and for 2008 they are entitled to an annual performance bonus as determined by the
Compensation Committee. The annual performance bonus for each Named Executive Officer has target and maximum bonus amounts
expressed as a percentage of his or her annual base salary. The respective percentages are determined by position and level of responsibility
and are stated in the annual incentive plan adopted by the Compensation Committee. Our Chief Executive Officer's employment agreement
provides that his target will not be less than 75% of his base salary with a maximum of 125% of his base salary. The target and/or maximum
amounts may be increased for any Named Executive Officer by the terms of an employment agreement entered into after the adoption of an
annual incentive plan.
The following table sets forth the target and maximum bonus amounts for each level of executive officer with respect to both the 2007
incentive plan adopted in June 2007 (which replaced and superseded the 2007 incentive plan adopted in December 2006) (the "2007 Incentive
Plan") and the 2008 incentive plan adopted in February 2008 (the "2008 Incentive Plan"):
2007 Incentive Plan 2008 Incentive Plan
Target Maximum Target Maximum
Level Amount Amount Amount Amount
CEO 75% 125% 75% 125%
President — — 75% 125%
Executive Vice President 45% 100% 45% 100%
Senior Vice President 40% 75% 40% 75%
Each annual incentive plan then establishes thresholds, expressed as a percentage of the target amount or as the maximum amount, based
on the achievement of certain financial performance goals. The target bonus is designed to provide Named Executive Officers with a normal
target bonus if we perform to expectation. The threshold bonus is designed to provide Named Executive Officers with some bonus opportunity,
but less than the target opportunity if we do not achieve our expected budgeted performance. If we exceed our budgeted performance, Named
Executive Officers will be paid a maximum bonus in excess of the target in order to reward them for our outstanding performance. For 2007 and
2008, the goal is based on budgeted EBITDA subject to certain adjustment for non-recurring items as determined by the Company Board. The
following table sets forth the thresholds and related goals with respect to both the 2007 Incentive Plan and the 2008 Incentive Plan:
Thresholds 2007 Incentive Plan 2008 Incentive Plan
Budgeted Budgeted
EBITDA EBITDA
First threshold—33% of target 95% 95%
Second threshold—66% of target 97% 97%
Target 100% 100%
Maximum 108% 108%
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