GNC 2010 Annual Report Download - page 144

Table of Contents
2009 Incentive Plan 2008 Incentive Plan 2007 Incentive Plan
Target Maximum Target Maximum Target Maximum
Level Amount Amount Amount Amount Amount Amount
CEO 75% 125% 75% 125% 75% 125%
President 75% 125% 75% 125% — —
Executive Vice President 45% 100% 45% 100% 45% 100%
Senior Vice President 40% 75% 40% 75% 40% 75%
Each annual incentive plan establishes thresholds, expressed as a percentage of the target amount or 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,
2008 and 2009, the goal is based on budgeted EBITDA subject to certain adjustments 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, the 2008 Incentive Plan and
the 2009 Incentive Plan:
2009 Incentive Plan 2008 Incentive Plan 2007 Incentive Plan
Thresholds Budgeted EBITDA Budgeted EBITDA Budgeted EBITDA
First threshold—33% of target 95% 95% 95%
Second threshold—66% of target — 97% 97%
Target 100% 100% 100%
Maximum 106.5% 108% 108%
As in 2008, for the 2009 Incentive Plan, the payment amount will be pro rated for budgeted EBITDA achieved between the Target and
Maximum levels.
The annual incentive plan for 2010 performance (the "2010 Incentive Plan") was adopted by the Compensation Committee on
February 4, 2010. It provides for the same target and maximum bonus amounts for the CEO, President, Executive Vice President and Senior
Vice Presidents as the 2009 Incentive Plan. In addition, the 2010 Incentive Plan's goal is based on budgeted EBITDA subject to certain
adjustments for non-recurring items as determined by the Company Board. The thresholds and related goals with respect to the 2010 Incentive
Plan are as follows:
2010 Incentive Plan
Thresholds Budgeted EBITDA
First threshold—33% of target 91.5%
Second threshold—66% of target —
Target 100%
Maximum 103.9%
We do not disclose our internal budget for results of operations, including budgeted EBITDA (as determined by the Company Board).
This amount constitutes confidential financial information, and we believe that disclosure of this amount, whether with respect to historical
periods or future periods, would cause us competitive harm by disclosing to competitors a key element of our internal projections.
138