Neiman Marcus 2005 Annual Report Download - page 62

(1) Bonus payments are reported with respect to the year in which the related services were performed and consist of both bonus
payments made pursuant to our Key Executive Bonus Plan and discretionary bonus payments.
Discretionary bonus payments were made in fiscal year 2006 for $86,235 to Burton M. Tansky, $34,555 to Karen W. Katz,
$49,915 to James E. Skinner, $20,937 to Brendan L. Hoffman and $19,344 to James J. Gold.
(2) The amount shown for Mr. Tansky is for a car allowance.
(3) The amount shown for Karen Katz is for a clothing allowance.
(4) The amount shown for Jim Gold is for a cost of living adjustment due to his relocation from Texas to New York.
(5) Restricted stock and options awarded the Named Executive Officers in fiscal years 2005 and 2004 were awarded under The
Neiman Marcus Group, Inc. 1997 Incentive Plan (the "1997 Plan") which terminated on the closing date of the Transactions.
All outstanding awards were cashed out in accordance with the merger agreement or were rolled over into equity in the
Company. In particular, members of senior management rolled over or invested a mixture of cash and restricted stock equal
to an aggregate of $25.6 million into shares of the Company's stock.
(6) Options awarded the Named Executive Officers in fiscal year 2006 were awarded under the Neiman Marcus, Inc.
Management Equity Incentive Plan.
(7) The amounts reported include the cost of matching contributions under the Key Employee Deferred Compensation Plan,
which was terminated on the closing date of the Transactions and replaced by The Neiman Marcus Group, Inc. Key
Employee Compensation Plan effective January 1, 2006 ("Matching Contributions"), group life insurance premiums, and
financial counseling. For fiscal year 2006, such amounts for each of the Named Executive Officers were as follows:
Matching Group Life Financial
Name Contributions Insurance Premiums Counseling
Burton M. Tansky $ 47,227 $ 5,133 $ 30,204
Karen W. Katz 40,585 811 1,090
James E. Skinner 26,791 1,072 —
Brendan L. Hoffman 10,961 386 —
James J. Gold — 437 3,000
OPTION GRANTS IN LAST FISCAL YEAR
Individual Grants(1)
Name
Number of
Securities
Underlying
Options
Granted
(#)
Percent of
Total Options
Granted to
Employees in
Fiscal Year(2)
Exercise
or Base
Price
($/Share)
Expiration
Date
Grant Date
Present Value($)(3)
Burton M. Tansky 16,349.18 21.96 (1) 11/29/2015 $ 5,832,535
Karen W. Katz 10,682.08 14.35 (1) 11/29/2015 $ 3,957,442
James E. Skinner 5,341.04 7.18 (1) 11/29/2015 $ 1,978,721
Brendan L. Hoffman 5,341.04 7.18 (1) 11/29/2015 $ 1,978,721
James J. Gold 5,341.04 7.18 (1) 11/29/2015 $ 1,978,721
(1) Options granted during the 2006 fiscal year are nonqualified stock options granted under the Neiman Marcus, Inc.
Management Equity Incentive Plan (the "Management Equity Incentive Plan") and will expire no later than the tenth
anniversary date of the grant. Options granted pursuant to the Management Equity Incentive Plan to each of the Named
Executive Officers include both performance options and fair value options. The performance options have an exercise price
of $1,445 per share, subject to annual accretion at ten percent (10%) compound rate beginning on the date of grant and
continuing until the fifth anniversary date of the grant (a "Performance Option"). The fair value options were granted at the
fixed rate of $1,445 per share, or the fair market value of the underlying common stock on the date of grant (a "Fair Value
Option"). For those options granted in connection with the Transactions, for purposes of the
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