Redbox 2008 Annual Report Download - page 93

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competitive when compared to similar positions at our peer group companies and therefore that no increases were
necessary.
In April 2008, Mr. Davis joined the Company as Chief Operating Officer. In connection with his hire, the
Committee established his 2008 base salary at $400,000, based on a review of market data from Towers Perrin for
Chief Operating Officer positions at similarly situated companies and a review of Mr. Davis’s salary history.
In June 2008, as a result of the additional responsibilities imposed on Mr. Camara in connection with his
temporary assignment with the Entertainment line of business and Operations, the Committee approved a
temporary increase to Mr. Camara’s base salary, from $245,003 to $300,000, which was originally intended to
apply from April 1, 2008 until the duration of such temporary assignment. In March 2009, upon recommendation of
our Chief Operating Officer, the Committee determined that Mr. Camara’s base salary increase to $300,000 would
no longer be temporary because his temporary assignment had become permanent. The Committee based this
determination on a review of market data for comparable positions in peer group companies.
Short-Term Incentives. The 2008 short-term incentives awarded to our Named Executive Officers were
awarded under the 2008 Incentive Compensation Plan, which consisted of a cash bonus to reward executives for
performance during the 2008 fiscal year. Unlike the 2007 Incentive Cash Bonus Plan, the plan adopted by the
Committee for 2008 provided full discretion to the Committee to determine the amount of the payouts, while still
focusing executive officers on the achievement of corporate performance measures. By maintaining full discretion,
the Committee retained the flexibility to vary the amount of the payouts based on a holistic review of corporate
performance after the completion of the performance period.
The 2008 Incentive Compensation Plan was structured as follows: 70% was based on the Committee’s
discretion after reviewing the Company’s achievement of certain performance measures described below and 30%
was based on Committee discretion after evaluating the management team’s and/or individual performance. Of the
70% attributable to the Committee’s review of achievement of corporate performance measures, once certain
minimum thresholds were achieved as described below, eligible executive officers could have received between 0%
and 200% of their target amount, depending on the level of achievement of the measures. Of the 30% attributable to
the Committee’s discretion after evaluating the management team’s and/or individual performance, participants
under the plan could have received between 0% and 200% of their target amount.
As noted above, the Committee believes that those executives with the greater ability to influence Company
performance should have a higher level of at-risk compensation. Accordingly, target bonus amounts under the 2008
Incentive Compensation Plan varied by position. The target cash bonus established for each participating Named
Executive Officer constituted a percentage of each officer’s actual base salary, as set forth in the table below. The
target award percentages for 2008 were the same as for 2007.
Named Executive Officer
Target Award as a
Percentage of
Actual Base Salary
David W. Cole ................................................... 60%
Paul D. Davis ................................................... 60%
Brian V. Turner .................................................. 50%
Donald R. Rench ................................................. 30%
Alexander C. Camara .............................................. 40%
James C. Blakely ................................................. 50%
For the 70% attributable to the Committee’s discretion after reviewing achievement of corporate performance
measures, the measures in the following table were reviewed by the Committee. These measures were recom-
mended by management to the Committee because they believe they are key drivers of stockholder value. Revenue
and EBITDA are important measures of annual performance, while installation numbers are essential to long-term
Company growth. Cross-selling is a key measure of the Company’s business strategy. The “Minimum Goal Range”
represented the minimum level of achievement needed in order for the Committee to use its discretion to determine
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