HR Block 2006 Annual Report Download - page 51

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SUMMARY COMPENSATION TABLE –
The following table sets forth for the fiscal year ended April 30, 2006 and for the two previous fiscal years the annual, long-term and
other compensation paid to the Chief Executive Officer of the Company and to each of the four highest paid executive officers of the
Company (other than the Chief Executive Officer) who was serving as an executive officer of the Company at the end of such year.
Annual Compensation Long-Term Compensation Awards Other
Other Annual Restricted Securities LTIP All Other Value of Total
Fiscal Salary Bonus Compensation Stock Underlying Payouts Compensation Compensation
Name and Principal Position Year ($) ($)(1) ($)(2) Award(s) ($)(3) Options (#) ($) ($)(4) ($)(5)
Mark A. Ernst, 2006 854,167 -0- 1,590 879,450 260,000 -0- 70,024 3,734,431
Chairman of the Board, 2005 816,250 394,292 1,509 714,975 220,000 -0- 81,200 3,530,626
President and Chief Executive Officer 2004 768,750 865,477 1,574 430,000 220,000 -0- 90,958 3,412,958
Robert E. Dubrish, 2006 504,692 75,000 40 410,410 140,000 -0- 34,679 2,063,622
President and Chief Executive Officer, 2005 472,372 203,432 42 309,823 170,000 -0- 42,752 2,204,821
Option One Mortgage Corporation 2004 450,000 438,681 40 228,687 180,000 -0- 66,097 2,211,306
William L. Trubeck 2006 461,250 185,000 -0- 410,410 100,000 -0- 20,889 1,819,549
Executive Vice President and 2005 260,795 72,457 120,501 501,250 100,000 -0- 12,557 1,659,561
Chief Financial Officer 2004 -0- -0- -0- -0- -0- -0- -0- -0-
Steven Tait 2006 457,920 300,000 40 410,410 100,000 -0- 42,615 1,952,985
President, RSM McGladrey 2005 429,794 357,095 42 238,325 70,000 -0- 29,642 1,539,298
Business Services, Inc. 2004 400,000 217,008 272 -0- 80,000 -0- 22,216 1,096,296
Nicholas J. Spaeth 2006 410,000 93,000 1,240 293,150 50,000 -0- 31,270 1,199,660
Senior Vice President and 2005 400,000 101,533 -0- 238,325 70,000 -0- 44,182 1,268,440
Chief Legal Officer 2004 100,000 300,000 1,982 1,159,800 400,000 -0- 3,921 3,849,703
NOTES:
unvested restricted shares with a value of $472,528. Mr. Tait received
(1) For fiscal year 2006, although Mr. Ernst earned a short-term incentive award
dividends totaling $13,475 on the restricted shares during fiscal year 2006.
under the Company’s short-term incentive compensation programs, he declined
쐍Nicholas J. Spaeth – For fiscal year 2006, 10,000 shares granted on June 30,
such award.
2005, valued at $29.315 per share. As of April 30, 2006, Mr. Spaeth held
(2) For fiscal year 2006, (a) the $1,590 figure represents the dollar value of tax 43,333 unvested restricted shares with a value of $990,809. Mr. Spaeth
preparation and advice provided by the Company to Mr. Ernst; (b) the $40 figure received dividends totaling $25,083 on the restricted shares during fiscal
represents payment by the Company for participation by Mr. Dubrish in the year 2006.
Company’s group legal plan; (c) the $40 figure represents payment by the (4) For fiscal year 2006, these figures include the following: (a) the Company’s matching
Company for participation by Mr. Tait in the Company’s group legal plan; and
contributions under the Company’s Deferred Compensation Plan for Executives
(d) the $1,240 figure represents the dollar value of tax preparation and advice
(‘‘DCP’’) of $51,340 (Mr. Ernst), $23,484 (Mr. Dubrish), $24,124 (Mr. Tait), and
provided by the Company to Mr. Spaeth.
$14,877 (Mr. Spaeth); (b) the Company’s matching contributions under the H&R
(3) Restricted shares of the Company’s common stock granted pursuant to the Block Retirement Savings Plan (‘‘RSP’’) of $15,833 (Mr. Ernst), $7,846 (Mr. Dubrish),
Company’s Long-Term Executive Compensation Plan. The awards shown represent $11,827 (Mr. Trubeck), $15,746 (Mr. Tait) and $10,700 (Mr. Spaeth); (c) the
grants of restricted shares valued as of the date of the grant. Dividends are paid on insurance premiums paid by the Company with respect to term life insurance
the restricted shares when dividends are paid on the Company’s common stock. maintained by the Company for the benefit of each of the named executive officers
The restricted shares vest in one-third annual increments beginning one year after of $1,174 (Mr. Ernst), $1,864 (Mr. Dubrish), $635 (Mr. Trubeck), $665 (Mr. Tait), and
the grant date. $564 (Mr. Spaeth); and (d) the economic value of the death benefit provided by the
쐍Mark A. Ernst – For fiscal year 2006, 30,000 shares granted on June 30, Company’s Executive Survivor Plan (‘‘ESP’’) of $1,677 (Mr. Ernst), $1,485
2005, valued at $29.315 per share. As of April 30, 2006, Mr. Ernst held (Mr. Dubrish), $8,426 (Mr. Trubeck), $2,079 (Mr. Tait) and $5,129 (Mr. Spaeth). The
56,666 unvested restricted shares with a value of $1,295,668. Mr. Ernst imputed income reported from the ESP represents the portion of the premium paid
received dividends totaling $26,283 on the restricted shares during fiscal by the Company pursuant to the ESP that is attributable to term life insurance
year 2006. coverage for the executive officer. The ESP provides only an insurance benefit with
쐍Robert E. Dubrish – For fiscal year 2006, 14,000 shares granted on June 30, no cash compensation element to the executive officer.
2005, valued at $29.315 per share. As of April 30, 2006, Mr. Dubrish held (5) For purposes of determining the Value of Total Compensation, stock option awards
28,514 unvested restricted shares with a value of $651,973. Mr. Dubrish
were valued using the Black-Scholes option pricing model as of the date of grant.
received dividends totaling $13,610 on the restricted shares during fiscal
Our use of the Black-Scholes model does not necessarily mean we believe or
year 2006.
acknowledge that it can accurately determine the value of options. The ultimate
쐍William L. Trubeck – For fiscal year 2006, 14,000 shares granted on June 30,
value of options, if any, will depend on the future market price of the underlying
2005, valued at $29.315 per share. As of April 30, 2006, Mr. Trubeck held
common stock and the optionee’s individual investment decisions, neither of which
27,333 unvested restricted shares with a value of $624,969. Mr. Trubeck
can be predicted with any degree of certainty. For fiscal year 2006, stock option
received dividends totaling $13,283 on the restricted shares during fiscal
awards were valued at $1,929,200 (Mr. Ernst), $1,038,800 (Mr. Dubrish), $742,000
year 2006.
(Mr. Trubeck), $742,000 (Mr. Tait), and $371,000 (Mr. Spaeth).
쐍Steven Tait – For fiscal year 2006, 14,000 shares granted on June 30, 2005,
valued at $29.315 per share. As of April 30, 2006, Mr. Tait held 20,666
H&R BLOCK 2006 Proxy Statement
23