Pep Boys 2008 Annual Report Download - page 41

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Name
Threshold
($)
Target
($)
MAX
($)
CAP
($)
Michael R. Odell 400,000 800,000 1,200,000 1,600,000
Raymond L. Arthur 187,500 375,000 562,500 750,000
Joseph A. Cirelli 67,505 135,009 202,514 270,018
Troy E. Fee 56,250 112,500 168,750 225,000
Scott A. Webb 90,000 180,000 270,000 360,000
Executive Officers as a Group (7 persons) 922,305 1,844,609 2,766,914 3,689,218
Officers (non-Executive) as a Group
(14 persons) 525,088 1,050,176 1,575,264 2,100,352
With respect to fiscal year 2008, the amounts that were earned by our Named Executive Officers under the
Annual Incentive Bonus Plan, as in effect for the 2008 fiscal year, were as follows:
Name Bonus
Michael R. Odell1 $219,695
Raymond L. Arthur2 $375,000
Joseph A. Cirelli $40,985
Tory E. Fee $41,288
Scott A. Webb $66,060
Executive Officers as a group (7 persons) $810,437
Officers (non-Executives) as a group (14 persons) $350,709
(1) Mr. Odell, citing the fact that the Company had determined not to provide merit increases across its
associate base, declined his bonus payment for fiscal 2008.
(2) As an inducement for Mr. Arthur to join the Company in 2008, his fiscal 2008 bonus payment was
guaranteed at target level.
Directors of the Company who are not employees are not eligible to participate in the Bonus Plan.
Federal Income Tax Consequences. The federal income tax consequences arising with respect to grants awarded
under the 2009 Plan will depend on the type of grant. The following provides only a general description of the
application of federal income tax laws to certain grants under the 2009 Plan. This discussion is intended for the
information of stockholders considering how to vote at the 2009 Annual Meeting and not as tax guidance to
participants in the 2009 Plan, as the consequences may vary with the types of grants made, the identity of the
recipients, and the method of payment or settlement. The summary does not address the effects of other federal
taxes (including possible “golden parachute” excise taxes) or taxes imposed under state, local, or foreign tax laws.
From the recipients’ standpoint, as a general rule, ordinary income will be recognized at the time of payment of
cash or delivery of actual shares of Pep Boys Stock. Future appreciation on shares of Pep Boys Stock held beyond
the ordinary income recognition event will be taxable at capital gains rates when the shares of Pep Boys Stock are
sold. We, as a general rule, will be entitled to a tax deduction that corresponds in time and amount to the ordinary
income recognized by the recipient, and we will not be entitled to any tax deduction in respect of capital gain
income recognized by the recipient.
Exceptions to these general rules may arise under the following circumstances: (i) if shares of Pep Boys Stock,
when delivered, are subject to a substantial risk of forfeiture by reason of failure to satisfy any employment-,
service-, or performance-related condition, ordinary income taxation and our tax deduction will be delayed until the
risk of forfeiture lapses (unless the recipient makes a special election to ignore the risk of forfeiture); (ii) if an
employee is granted a stock option that qualifies as an “incentive stock option,” no ordinary income will be
recognized, and we will not be entitled to any tax deduction, if shares of Pep Boys Stock acquired upon exercise of
such stock option are held more than the longer of one year from the date of exercise and two years from the date of