American Home Shield 2008 Annual Report Download - page 139

Table of Contents
short-term incentive compensation under our Annual Bonus Plan;
long-term incentive compensation under the LTIP and the MSIP; and
perquisites, welfare benefits, retirement plan and deferred compensation plan.
Each of these elements plays an integral role in our balancing of executive rewards over short- and long-term periods.
Base Salary
To determine base salaries for executive officers, the Company first reviews market data and targets base salaries at the market median of the Peer
Group. Base salary for each Named Executive Officer is then determined by adjusting the target amount according to the Named Executive Officer's
experience relative to industry peers, time in his or her position, individual performance, future potential and leadership qualities. In 2008, the base salary of
our CEO was 102% of the market data at the market median of the Peer Group, and base salary for all Named Executive Officers was a collective average of
92% of the market data at the market median of the Peer Group.
Base salaries for executive officers are reviewed annually by the Board during the Company's merit review process. Base salaries for 2008 for our
executives were fixed by the Board at its meeting on February 29, 2008, to be effective January 1, 2008.
The following table sets forth information regarding the base salaries and salary increases for Named Executive Officers in 2008.
2008 Salary Increase Table
Named Executive Officer
Increase
%
New
Salary
Basis for Increase
Committee
Approval
Effective
Date
J. Patrick Spainhour(1) 5.6% $950,000 Merit adjustment for individual performance 2/29/2008 1/1/2008
Steven J. Martin(2) 0.0% $350,000 N/A N/A N/A
Greerson G. McMullen 1.3% $405,000 Merit adjustment for individual performance 2/29/2008 1/1/2008
Thomas G. Brackett 9.3% $330,000 Merit adjustment for individual performance 2/29/2008 1/1/2008
Michael M. Isakson 4.9% $324,000 Merit adjustment for individual performance 2/29/2008 1/1/2008
Dennis R. Sutton 2.6% $400,000 Merit adjustment for individual performance 2/29/2008 1/1/2008
Lisa V. Goettel(3) N/A N/A N/A N/A N/A
Merit increase from $900,000 to $950,000 for Mr. Spainhour was approved, but not processed, in 2008. The merit increase was processed retroactively
to January 1, 2008, in February 2009.
Mr. Martin's salary was set by the Board at the time of his promotion to CFO in November of 2007. Mr. Martin was not eligible for an additional salary
increase in 2008.
Ms. Goettel did not receive a salary increase in 2008 because she had tendered her resignation prior to the February 29, 2008, meeting of the Board.
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