Pep Boys 2008 Annual Report Download - page 6

THE PEP BOYS −
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− MANNY, MOE & JACK
3111 West Allegheny Avenue
Philadelphia, Pennsylvania 19132
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PROXY STATEMENT
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TABLE OF CONTENTS
GENERAL INFORMATION ........................................................................................................................1
SHARE OWNERSHIP ...................................................................................................................................4
(ITEM 1) ELECTION OF DIRECTORS .......................................................................................................7
What is the makeup of the Board of Directors? ..........................................................................................7
Nominees for Election .................................................................................................................................7
Corporate Governance .................................................................................................................................9
Human Resources Committee Interlocks and Insider Participation .............................................................9
Meetings and Committees of the Board of Directors ..................................................................................9
Can a shareholder nominate a candidate for director? ...............................................................................10
How are candidates identified and evaluated? ..........................................................................................10
How are directors compensated? ...............................................................................................................11
Director Compensation Table ....................................................................................................................11
Certain Relationships and Related Transactions .......................................................................................12
Report of the Audit Committee of the Board of Directors ........................................................................12
Independent Registered Public Accounting Firm’s Fees ...........................................................................13
EXECUTIVE COMPENSATION ...............................................................................................................14
Compensation Discussion and Analysis ....................................................................................................14
Human Resources Committee Report ........................................................................................................18
Summary Compensation Table ..................................................................................................................19
Grants of Plan Based Awards ....................................................................................................................21
Outstanding Equity Awards at Fiscal Year-End Table ..............................................................................22
Option Exercises and Stock Vested Table .................................................................................................23
Pension Plans .............................................................................................................................................23
Nonqualified Defined Contribution and Other Nonqualified Deferred Compensation Plans ...................24
Employment Agreements with the Named Executive Officers .................................................................25
Potential Payments upon Termination or Change of Control ....................................................................25
(ITEM 2) PROPOSAL TO RATIFY THE APPOINTMENT OF INDEPENDENT REGISTERED
PUBLIC CCCOUNTING FIRM ..................................................................................................................26
(ITEM 3) PROPOSAL TO AMEND AND RESTATE OUR STOCK INCENTIVE PLAN TO
EXTEND ITS TERM THROUGH DECEMBER 31, 2014 AND TO PROVIDE AN ADDITIONAL
1,500,000 SHARES AVAILABLE FOR AWARD ISSUANCES THEREUNDER....................................27
(ITEM 4) APPROVAL OF THE AMENDMENT AND RESTATEMENT OF OUR ANNUAL
INCENTIVE BONUS PLAN TO ALLOW CERTAIN AMOUNTS PAID UNDER THE
PLAN TO BE DEDUCTIBLE UNDER SECTION 162(M) OF THE INTERNAL REVENUE CODE .....32
(ITEM 5) SHAREHOLDER PROPOSAL REGARDING THE COMPANY’S
REINCORPORATION TO NORTH DAKOTA ..........................................................................................37
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE .........................................39
COST OF SOLICITATION OF PROXIES .................................................................................................39
PROPOSALS OF SHAREHOLDERS .........................................................................................................40
ANNUAL REPORT ON FORM 10-K .........................................................................................................40
EXHIBIT A – 2009 STOCK INCENTIVE PLAN .................................................................................... A-1
EXHIBIT B – ANNUAL INCENTIVE BONUS PLAN ............................................................................B-1