US Cellular 2008 Annual Report Download - page 49

amount of bonus awarded as a result of the achievement of the above performance measures and the
amount awarded on a discretionary basis on an individual basis:
Steven T. Jay M. Michael S. Jeffrey J.
Campbell Ellison Irizarry Childs
Base salary 3/1/07 - 2/28/08 ...................... $377,881 $508,464 $460,000 $377,881
Target bonus percentage ........................ 50% 60% 45% 40%
Target Bonus ................................. $188,941 $305,078 $207,000 $151,152
Allocation of 87.5% of bonus pool based on achievement
of performance measures in 2007 ................ $165,323 $266,944 $181,125 $132,258
Discretionary adjustment of bonus pool to 107% ....... 36,843 59,490 40,365 29,475
Discretionary individual bonus adjustment ............ 49,834 74,566 53,510 42,267
Total ...................................... $252,000 $401,000 $275,000 $204,000
The discretionary individual adjustments were made based on the achievement of the team
performance objectives discussed above under Performance Objectives and Accomplishments.
For disclosure purposes, the amount of bonus paid on March 13, 2009 with respect to 2008
performance is as follows:
Steven T. Jay M. Michael S. Jeffrey J.
Campbell Ellison Irizarry Childs
Total Bonus for 2008 paid in 2009 .................. $143,976 $223,086 $152,068 $111,567
The amounts of the bonus for 2008 paid in 2009 are only provided for disclosure purposes. These
amounts were not earned until paid in 2009 and will be reported in next year’s Summary Compensation
Table with respect to 2009.
In addition, the Chairman determines annually the President and CEO’s bonus.
There was no written bonus plan for the President for the bonus that was earned and paid in 2008.
The bonus of the U.S. Cellular President was determined in a manner similar to the foregoing, but with
some differences. In addition to the factors described above for all executive officers in general, the
Chairman considered total cash compensation paid to chief executive officers of other comparable
companies, including those which are divisions or subsidiaries of parent companies. These companies
included the peer companies included in the ‘‘Stock Performance Graph’’ in the 2008 annual report to
shareholders and as discussed above under ‘‘Benchmarking’’.
No specific measures of performance were considered determinative with respect to the bonus of
the President. As with the other executive officers, all facts and circumstances were taken into
consideration by the Chairman in his executive compensation decisions for the President. Ultimately, it
was the informed judgment of the Chairman that determined the bonus for the President.
With respect to the bonus determination for the President, the Chairman considered the achievement
of the performance measures as discussed above for the other named executive officers. As noted
therein, the percentage of overall achievement of the target bonus for 2007 was 87.5%, which was
adjusted on a discretionary basis to 107%. This percentage was considered by the Chairman, but was
not applied mechanically to calculate any portion of the President’s bonus. The entire amount of the
bonus is discretionary and the President and CEO does not become entitled to any amount of bonus as
a result of performance measures or otherwise unless and until approved by the Chairman and paid.
The informal target for Mr. Rooney’s bonus was 70% of his base salary for that year. Based on the
2007 base salary of $790,000, Mr. Rooney’s target bonus was $553,000. Using a percentage of 107% of
target, Mr. Rooney’s bonus, prior to any discretionary individual adjustment, would be approximately
$591,710 if he participated in the Executive Bonus Plan. In determining the amount of the bonus for the
President to be paid in 2008, the Chairman considered all facts and circumstances, personal objectives,
achievement of such objectives, how well U.S. Cellular performed in the prior year, and the extent to
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