American Home Shield 2008 Annual Report Download - page 138

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Table of Contents
ServiceMaster. In consultation with Hewitt, we developed a comparison group (the "Peer Group") consisting of 69 diversified or service, retail and
manufacturing companies with revenues ranging from one-half to two times our revenues. The decision to set the range for establishing the peer group at one-
half to two times our revenues was made on Hewitt's recommendation due to our diversified business model.
Peer Group
Gannett Co Interpublic Group of Cos. NCR Corp
Starwood Hotels & Resorts Worldwide Unisys Corp. Tribune Co.
Quest Diagnostics Inc Kelly Services Inc Beazer Homes USA Inc
Avaya Inc Hilton Hotels Corp H&R Block Inc
United Stationers Inc Fiserv Inc Warner Music Group Corp
New York Times Co Washington Group Intl Inc Convergys Corp
DST Systems Inc Brightpoint Inc Chicago Bridge & Iron Co
American Greetings Renal Care Group Inc Ceridian Corp
Dunn & Bradstreet Corp Equifax Inc Advo Inc
Imation Corp Covance Inc Acxiom Corp
Gatx Corp Dollar General Corp CDW Corp
Blockbuster Inc AutoZone Inc Darden Restaurants Inc
Ross Stores Inc Longs Drug Stores Corp Big Lots Inc
Neiman-Marcus Group Inc PetSmart Inc Williams-Sonoma Inc
Retail Ventures Inc Charming Shoppes Inc Payless ShoeSource Inc
Dicks Sporting Goods Inc Rent-a-Center Inc Brown Shoe Co Inc
Pep Boys-Manny Moe & Jack AnnTaylor Stores Corp Tractor Supply Co
Spartan Stores Inc Petco Animal Supplies Inc Pier 1 Imports Inc
Phillips-Van Heusen Corp Sherwin-Williams Co Fortune Brands Inc
Black & Decker Corp Dover Corp Brunswick Corp
Avery Dennison Corp Whirlpool Ecolab Inc
Clorox Co Alberto-Culver Co Lennox International Inc
Hasbro Inc Scotts Miracle-Gro Co Walter Industries Inc
In determining 2008 executive compensation, we relied on the peer group data provided by Hewitt in 2007 and adjusted it by 3% to mirror general
market merit increases. We then evaluated base pay and salary for our executives as discussed below. Differences in total compensation generally reflect the
tenure, relevant experience and expertise of the individual Named Executive Officers within their roles.
The Board establishes the compensation of our Chief Executive Officer. In determining the Chief Executive Officer's compensation in 2008, the Board
considered the following factors: the Board's assessment of the Chief Executive Officer's individual performance, the operating and financial performance of
the Company, and the competitive market data presented to the Board by our Senior Vice President, Human Resources. The Chief Executive Officer
recommends compensation for the Company's other executive officers based on his assessment of each executive officer's individual responsibility,
performance, overall contribution, and the competitive market data presented. The Board approves the compensation arrangement for each executive officer.
Elements of Executive Compensation
For 2008, our executive compensation program consisted primarily of four elements:
base salary;
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