Neiman Marcus 2007 Annual Report Download - page 62

Table of Contents
• Confidentiality, Non-Competition and Termination Benefits Agreements
Each of the named executive officers (and certain other officers except for Mr. Tansky) is a party to a confidentiality, non-
competition and termination benefits agreement with the Company. The confidentiality, non-competition and termination benefits
agreements provide for severance benefits if the employment of the affected individual is terminated other than for death, disability, or
for cause. These agreements provide for a severance payment equal to one and one-half annual base salary of the named executive
officer, payable over an eighteen month period, and reimbursement for COBRA premiums for the same period.
• Other
The Company has change in control provisions in its Management Incentive Plan and its retirement plans that may provide
for accelerated vesting and/or distributions in certain circumstances and these provisions apply equally to all participants in the plans,
including the named executive officers, except to the extent an executive is party to an individual agreement that provides otherwise.
Consideration of Tax and Accounting Treatment of Compensation
• Internal Revenue Code §409A
The American Jobs Creation Act of 2004 added a new Section 409A to the Internal Revenue Code which applies to
compensation deferred under a nonqualified deferred compensation plan after December 31, 2004 and will become effective on
December 31, 2008. Section 409A imposes restrictions on funding, distributions, and election to participate in the affected plans. Our
executive compensation plans and arrangements are intended to comply with Section 409A.
• Accounting for Stock-Based Compensation
We began accounting for stock-based payments in accordance with the requirements of FASB Statement 123(R) on July 31,
2005. When setting equity compensation, the Compensation Committee considers the estimated cost for financial reporting purposes
of any equity compensation it is considering. However, the accounting impact does not have a material impact on the design of our
equity compensation plan.
Compensation Committee Report
The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis required by Item
402(b) of Regulation S-K with management and, based on such review and discussions, the Compensation Committee recommended
to the Board that the Compensation Discussion and Analysis be included in this Annual Report on Form 10-K.
THE COMPENSATION COMMITTEE
Jonathan J. Coslet, Chairman
Kewsong Lee
John G. Danhakl
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