Redbox 2008 Annual Report Download - page 102

Brian V. Turner, Chief Financial Officer. In August 2005, the Company entered into an employment
agreement with our Chief Financial Officer, Brian V. Turner. The agreement superseded all prior employment
agreements between Mr. Turner and the Company. Under the terms of the employment agreement, the Company
agreed to pay Mr. Turner an initial annual base salary of $270,400, subject to possible increase at the discretion of
the Compensation Committee. Mr. Turner is also eligible to receive annual cash awards (under the non-equity
incentive plan) based on the achievement of certain performance targets applicable to the award. For a description
of the severance provisions in Mr. Turner’s employment agreement, please refer to the section entitled “Elements of
Post-Termination Compensation and Benefits.”
2008 Incentive Compensation Plan
For 2008, short-term incentive awards were granted to our executive officers under the 2008 Incentive
Compensation Plan. The 2008 awards consisted of discretionary cash awards tied to two components — Company
performance and individual performance. For additional information regarding the 2008 Incentive Compensation
Plan, see “Compensation Discussion and Analysis.”
1997 Amended and Restated Equity Incentive Plan
Long-term incentives awarded to our executive officers consist of equity compensation in the form of stock
options, restricted stock awards, and performance-based restricted stock awards under the 1997 Plan. Awards of
restricted stock vest (and are no longer subject to forfeiture) in equal annual installments over the period from the
date of award until the fourth anniversary of the date of award. The term of the options is five years and the options
vest in equal annual installments over the period from the date of award until the fourth anniversary of the date of
award. The exercise price for the option grants is equal to the closing price on the date of grant. Restricted stock
under the performance-based restricted stock awards was earned based on the level of achievement of a specified
performance goal. Once earned, the restricted stock vests in three equal annual installments, provided that the
executive continues to provide services to us. For additional information regarding the performance-based restricted
stock, see “Compensation Discussion and Analysis.”
Cash Compensation in Proportion to Total Compensation
The proportion of cash compensation compared to total compensation varies among the Named Executive
Officers. Specifically, allocation among the different components of compensation varies based on the position and
level of responsibility. For example, those Named Executive Officers with the greater ability to influence Coinstar’s
performance will have a higher level of at-risk compensation in the form of an increased percentage of total
compensation in stock options, restricted stock awards, and performance-based restricted stock. Except with respect
to Mr. Davis, who began his employment with the Company in 2008 and therefore only received a new hire grant
and not the standard long-term incentive compensation, the lower the level of influence of an executive, the higher
the percentage of their total compensation is in the form of base salary with a correspondingly lower percentage of
stock options, restricted stock awards, and performance-based short-term incentives. Accordingly, executive
compensation for higher-level executives is set to align closely with stockholders’ and Coinstar’s long-term
shared interests. In 2008, the percentage of total cash compensation as compared to total compensation was as
follows: Mr. Cole, 38%; Mr. Davis, 63%; Mr. Turner, 42%; Mr. Rench, 61%; Mr. Camara, 56% and Mr. Blakely,
49%.
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