Snapple 2008 Annual Report Download - page 117

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Awards Made Prior to 2004 Awards Made for 2004 Forward
Face value of conditional share
award made
50% to 80% of base salary 50% to 120% of base salary (2004
and 2005). 80% to 160% of base
salary (2006 forward).
Performance conditions Award is based on Total
Stockholder Return (“TSR”)
relative to the Comparator Group
with a UEPS hurdle.
Half of the award is based on
growth in UEPS over the three
year performance period. The
other half of the award is based on
TSR relative to the Comparator
Group.
UEPS vesting requirement(1) For the award to vest at all, UEPS
must have grown by at least the
rate of inflation as measured by
the Retail Price Index plus 2% per
annum (over three years).
The extent to which some, all or
none of the award vest depends
upon annual compound growth in
aggregate UEPS over the
performance period:
• 30% of this half of the award
will vest if the absolute
compound annual growth rate
achieved is 6% or more.
• 100% of this half of the award
will vest if the absolute
compound annual growth rate
achieved is 10% or more.
• Between 6% and 10%, the
award will vest proportionately.
TSR vesting requirement(1) The extent to which some, all or
none of the award vests depends
on the TSR relative to the
Comparator Group:
• The minimum award of 50% of
the shares conditionally granted
will vest at the 50th percentile
ranking.
• 100% of the award will vest at
the 80th percentile ranking or
above.
• Between the 50th and
80th percentiles, the award will
vest proportionately.
The extent to which some, all or
none of the award vests depends
upon the TSR relative to the
Comparator Group:
• 30% of this half of the award
will vest at the 50th percentile
ranking from 2006.
• 100% of this half of the award
will vest at the 80th percentile
ranking or above.
• Between the 50th and
80th percentiles, the award will
vest proportionately.
Re-tests If the TSR performance criteria is
not satisfied in the initial three
year performance period, the
award will be deferred on an
annual basis for up to three years
until the performance is achieved
over the extended period (i.e.,
either four, five or six years). If
the award does not vest after six
years, then it will lapse.
There are no re-tests and the
award will lapse if the minimum
requirements are not met in the
initial three year performance
period.
93
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)