Travelzoo 2003 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2003 Travelzoo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

committee regularly reviews the company's executive compensation polices and practices and establishes the
compensation of executive oÇcers.
Compensation Principles
The fundamental objective of Travelzoo's executive compensation program is to attract, retain and
motivate key executives to enhance long-term proÑtability and shareholder value. Travelzoo's executive
compensation program meets this objective by:
‚ providing for a level of compensation that is competitive with other similarly sized publicly traded
companies, with particular emphasis on those in the Internet and media industries, and
‚ linking the compensation of executives to the operating and Ñnancial performance of the company by
reviewing the salary regularly and making adjustments relative to the company's overall performance.
Salary
Travelzoo targets executives' annual salaries to be competitive with comparable companies in the
Internet and media industries with whom the company competes for management. It considers the experience
and performance of the individual executive, the compensation of his or her peers in the industry, the
responsibilities and change in responsibilities during the past year of the individual executive, the overall
performance of the department under the executive's control and the overall performance of the entire
company. The committee does not have a formula for its determination and the committee considers all
factors in making its decision. Executive salaries are reviewed annually by the committee.
Stock-Based Compensation
Travelzoo did not compensate executives with stock or stock options in 2003.
CEO Compensation
The CEO's compensation is determined in accordance with the executive compensation principles
established by the committee. The committee considers overall performance, individual performance,
competitive compensation and targeted pay levels when determining Mr. Bartel's compensation. His current
employment agreement became eÅective on July 1, 2003, and provides for an annual salary of $200,000.
Mr. Bartel's annual salary was increased to $200,000 from $192,000 as of July 1, 2003.
Compensation Committee
Ralph Bartel (Chairman)
Kelly M. Urso
Compensation Committee Interlocks and Insider Participation
During 2003, Ralph Bartel, the Chief Executive OÇcer of Travelzoo, was a member of the Compensation
Committee. Mr. Bartel did not participate in the determination of his compensation as CEO during 2003.
10