Neiman Marcus 2004 Annual Report Download - page 59

The following table, which includes benefits under the Retirement Plan and the SERP, shows the estimated annual pension benefits payable to employees
in various compensation and years of service categories. The estimated benefits apply to an employee retiring at age 65 in 2005 who elects to receive his or
her benefit in the form of a straight line annuity. The amounts actually payable will be lower than the amounts shown below, since such amounts will be
reduced by 60 percent of the participant's estimated primary Social Security benefit.
Estimated Annual Retirement Benefits
Under Retirement Plan and SERP
Total Years of Service
Final Average
Pensionable
Earnings 5 10 15 20 25
$ 400,000 $ 40,000 $ 80,000 $120,000 $160,000 $200,000
600,000 60,000 120,000 180,000 240,000 300,000
800,000 80,000 160,000 240,000 320,000 400,000
1,000,000 100,000 200,000 300,000 400,000 500,000
1,200,000 120,000 240,000 360,000 480,000 600,000
1,500,000 150,000 300,000 450,000 600,000 750,000
The following table shows the pensionable earnings and credited years of service for the Named Executive Officers as of July 30, 2005, and years of
service creditable at age 65.
Years of Service(2)
Pensionable
Earnings
For Year Ended
July 30, 2005(1) Name at July 30, 2005 at Age 65
Burton M. Tansky $ 1,300,000 —(3) 23(3)
Karen M. Katz 715,000 20 37
James E. Skinner 510,000 4 17
Brendan L. Hoffman 440,000 7 35
James J. Gold 400,000 14 38
In computing the combined benefit under the Retirement Plan and SERP, "pensionable earnings" means, with respect to the Retirement Plan, base
salary and any bonus and, with respect to the SERP, base salary only. The amounts shown above include base salary only.
The credited years of service set forth in the table reflect years of credited service under the Retirement Plan, which is a "career average plan" with no
limitation on years of credited service. However, credited service under the SERP may not exceed 25 years.
For purposes of determining Mr. Tansky's retirement benefits under the SERP, Mr. Tansky will be credited with two times his years of service with the
Company provided (i) he does not compete with the Company for a period of three years following his retirement, (ii) the Company terminates his
employment other than for cause, or (iii) he resigns under certain circumstances following a change of control of the Company; otherwise,
Mr. Tansky's accrued service under the SERP will be calculated at 5/3 times his years of service if he retires after age 65 and in the normal manner in
all other cases. Mr. Tansky is 67 years old.
Director Compensation
Compensation for independent directors is a mix of cash and equity-based compensation. Independent directors do not receive consulting, advisory or
other compensatory fees from us. As an
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(2)
(3)