Neiman Marcus 2014 Annual Report Download - page 65

Table of Contents
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In light of our status as a privately held company, Section 16(a) of the Securities Exchange Act of 1934, as amended, does not apply to our directors,
executive officers or significant owners of our equity securities.
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This Compensation Discussion and Analysis is designed to provide an understanding of our compensation philosophy, core principles and
arrangements that are applicable to the named executive officers listed in the Summary Compensation Table.
The named executive officers for fiscal year 2015 (the named executive officers) are:
• Karen W. Katz, who serves as President and Chief Executive Officer and a member of the Parent Board and is our principal executive officer;
• Donald T. Grimes, who serves as Executive Vice President, Chief Operating Officer and Chief Financial Officer and is our principal financial
officer;
• James J. Gold, who serves as President, Chief Merchandising Officer;
• John E. Koryl, who serves as President, Neiman Marcus Stores and Online;
• Joshua G. Schulman, who serves as President of Bergdorf Goodman and President of NMG International; and
• James E. Skinner, who served as Executive Vice President, Chief Operating Officer and Chief Financial Officer and was our principal financial
officer until June 15, 2015 when he moved to the position of Vice Chairman.
Compensation Philosophy and Objectives. We have been in business over a century and are one of the largest luxury, multi-branded, omni-channel
fashion retailers in the world. Our continued success depends on the skills of talented executives who are dedicated to achieving solid financial performance,
providing outstanding service to our customers and managing our assets wisely. Our compensation program, comprised of base salary, annual bonus, long-
term incentives and benefits, is designed to meet the following objectives:
• Recruit and retain executives who possess exceptional ability, experience and vision to sustain and promote our preeminence in the
marketplace.
• Motivate and reward the achievement of our short- and long-term goals and operating plans.
• Align the interests of our executives with the financial and strategic objectives of our stockholders.
• Provide total compensation opportunities that meet the expectations of a highly skilled executive team, are aligned and consistent with our
underlying performance and are competitive with the compensation practices and levels offered by companies with whom we compete for
executive talent.
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Base Salary. Base salary is intended to provide a base level of compensation commensurate with an executive’s job title, role, tenure and
experience. We utilize base salary as a building block of our compensation program, establishing a salary range for particular positions based on survey data
and job responsibilities. Being competitive in base salary is a minimum requirement to recruit and retain skilled executives. Specifically, base salary levels of
the named executive officers are determined based on a combination of factors, including our compensation philosophy, market compensation data,
competition for key executive talent, the named executive officer’s experience, leadership, achievement of specified business objectives, individual
performance, our overall budget for merit increases and attainment of our financial goals. Salaries are reviewed before the end of each fiscal year as part of our
performance and compensation review process as well as at other times to recognize a promotion or change in job responsibilities. Merit increases are usually
awarded to the named executive officers in
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