World Fuel Services 2008 Annual Report Download - page 89

WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of December 31, 2008, the approximate future minimum commitments under these agreements,
excluding discretionary and performance bonuses, are as follows (in thousands):
Year Ended December 31,
2009 ............................................................. $ 5,081
2010 ............................................................. 4,241
2011 ............................................................. 3,159
$12,481
Named Executive Officer Incentive and Special Bonus Awards
Our CEO, COO, Chief Financial Officer (“CFO”), Chief Risk and Administrative Officer (“CRAO”) and
Aviation Segment President (“Aviation President”) are eligible to receive annual cash incentive awards under our
2008 Executive Incentive Plan (“Executive Incentive Plan”) upon the achievement of certain annual performance
targets. The 2008 performance targets for the CEO, COO, CFO and CRAO were generally based on the growth
of our net income while the 2008 performance targets for the Aviation President were generally based on
achieving certain levels of aviation net operating income. The 2007 and 2006 performance targets for all five
officers were generally based on the growth of our net income. For 2008, our CEO, COO, CFO and CRAO
earned their respective maximum annual cash incentive awards based on the achievement of the maximum
performance targets while our Aviation President earned approximately $0.6 million, including a discretionary
bonus award of $0.2 million based on his performance in 2008. For 2007, the minimum performance targets were
not met, and none of the five officers received an annual cash incentive award. However, our CFO received a
guaranteed minimum annual bonus for 2007 pursuant to the terms of his offer letter. For 2006, based on the
achievement of the maximum performance targets, our CEO, COO, CRAO and Aviation President earned their
respective maximum annual cash incentive awards. In addition, as a result of our strong financial performance in
2008, the Compensation Committee of the Board of Directors made special bonus awards to our CEO, COO,
CFO and CRAO aggregating $5.0 million, of which $4.5 million will be settled in our common stock and $0.5
million in cash, payable in March 2009. In the aggregate, the total combined annual cash incentive awards,
guaranteed minimum annual bonus and special bonus awards earned by the above executives as a group was $9.1
million, $0.1 million and $4.0 million for 2008, 2007 and 2006, respectively. In the aggregate, the amount of the
annual cash incentive awards, guaranteed minimum annual bonus and special bonus awards accrued as of
December 31, 2008 and 2007 was $8.8 million and $0.1 million, respectively, which was included in accrued
expenses and other current liabilities in the accompanying consolidated balance sheets.
Executive Severance Costs
In June 2006, we recorded executive severance costs totaling $1.5 million in accordance with the terms of
the separation agreement between us and our former CFO. Included in the executive severance costs are non-cash
expenses of $0.1 million related to share-based payment awards, net of the reversal of certain previously
recognized compensation costs associated with forfeited stock awards. The payment of the $1.4 million cash
severance costs were made at various specified times over a period of two years.
Deferred Compensation Plans
We maintain long-term service programs under which certain key employees receive cash awards for long-
term service. Our liabilities under these programs were $0.4 million at December 31, 2008 and 2007.
As of December 31, 2008 and 2007, deferred sales bonus of $3.0 million and $2.6 million, respectively, was
accrued in deferred compensation and other long-term liabilities in the accompanying balance sheets.
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