Neiman Marcus 2007 Annual Report Download - page 58

Table of Contents
Abercrombie & Fitch
Ann Taylor
Coach
Macy's
The Gap
Jones Apparel
Kohl's
Limited Brands
Liz Claiborne
Nordstrom
Polo Ralph Lauren
Saks
Talbots
Tiffany & Co.
Tommy Hilfiger
Williams Sonoma
In addition to the select companies above, we also review various third party compensation survey reports.
• Assessment of Fiscal Year 2008 Performance
In determining specific compensation actions for the named executive officers, the Compensation Committee considers the
performance relative to the pre-established goals that are set at the beginning of the year. For fiscal year 2008, our annual financial
goals were based on EBITDA, return on invested capital and/or inventory turnover performance. We do not disclose our business
plan or the components thereof because they constitute confidential business information that could impair our ability to compete
effectively in the retail market. However, by setting minimum, target, and maximum performance levels, the Compensation
Committee believes the performance targets are challenging based on historical company performance and industry and market
conditions. Similar goals are established at the division and business unit levels where appropriate for certain of our named executive
officers. As it relates to our annual incentive compensation program in particular, this performance assessment is a key determinant in
total compensation paid to our named executive officers.
2008 Direct Compensation Actions for Our Chief Executive Officer and Other Named Executive Officers
As described above, compensation decisions for our named executive officers are based upon a review of the Company's
performance versus the Company's annual goals and objectives, an examination of the competitive marketplace for luxury retail talent,
and our relative competitive compensation position based in large part upon our survey of a group of industry related companies and
other broad-based industry surveys. We target our direct compensation to be positioned between the 50th and 75th percentile levels of
the compensation packages received by executives in our peer group of industry related companies. Ultimately, our named executive
officers' total compensation is based on the level of achievement versus Company, business unit, and individual target performance
levels.
• Base Salary
On September 18, 2007, the Compensation Committee approved the following salary increases for the named executive
officers:
Name 2007 Salary Increase 2008 Salary
($) (%) ($)
Burton M. Tansky $ 1,420,000 5.6% $ 1,500,000
Karen W. Katz 800,000 9.4% 875,000
James E. Skinner 575,000 8.7% 625,000
Brendan L. Hoffman 500,000 6.0% 530,000
James J. Gold 460,000 6.5% 490,000
For all of the named executive officers above, the salary adjustments reflect merit increases and adjustments relative to
competitive market benchmarks as discussed above. For each of Ms. Katz and Mr. Skinner, the salary adjustment also includes the
promotion to Executive Vice President.
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