Neiman Marcus 2006 Annual Report Download - page 81
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Karen W. Katz
Executive Benefits
and Payments Upon Separation
Termination
due to
death
($)(1)(6)
Termination
due to
Disability
($)(2)(6)
Termination
without cause
or
for good
reason
($)(3)(6)
Change in
Control
($)(4)(6)
Termination
without cause
following a
change in
control
($)(5)(6)
Compensation:
Severance $ — $ — $ 1,600,000 $ — $ 1,600,000
Bonus 520,000 520,000 1,040,000 — 1,040,000
Stock Options — — — — 8,098,930
Benefits & Perquisites:
Retirement Plans — — 355,000 — 355,000
Outplacement Services — — 60,000 — 60,000
Deferred Compensation Plan 360,631 360,631 360,631 360,631 360,631
Cash Incentive Plan Payment — — — 1,925,367 —
Long-Term Disability — 240,000 — — —
Health and Welfare Benefits — — 29,884 — 29,884
Life Insurance Benefits 1,000,000 — — — —
Total $ 1,880,631 $ 1,120,631 $ 3,445,515 $ 2,285,998 $ 11,544,445
Footnotes:
(1) Represents Ms. Katz' target bonus and a lump sum basic life insurance benefit payment of $1,000,000 payable by the Company's
life insurance provider to Ms. Katz' beneficiaries upon her death.
(2) Represents Ms. Katz' target bonus and long-term disability payments of $20,000 per month for twelve months payable from the
Company's long-term disability insurance provider.
(3) Represents a lump sum payment of two times base salary, two times target bonus, a lump sum retirement benefit, and the
maximum amount for outplacement service payable under Ms. Katz' change in control agreement. The amount included for
health and welfare benefits represents a continuation of COBRA benefits for a period of two years. Calculations were based on
COBRA rates currently in effect. See "Change of Control Agreements" on page 72 of this section.
(4) Represents a lump sum amount payable under the Cash Incentive Plan, more fully described on page 74 of this section.
(5) Represents a lump sum payment of two times base salary, two times target bonus, the intrinsic value of all unvested equity
incentive awards calculated by taking the difference between the exercise price and the valuation price of $2,683.68 (as described
on page 59 of this section), and the maximum allowed for outplacement service. The amount included for health and welfare
benefits represents a continuation of COBRA benefits for a period of two years. Calculations were based on COBRA rates
currently in effect. See "Change of Control Agreements" on page 72 of this section.
(6) In addition, any earned but unpaid bonus relating to fiscal year 2007 would also be paid to Ms. Katz. See footnotes (1) and (3) of
the Summary Compensation Table on page 65 of this section.
76