American Home Shield 2008 Annual Report Download - page 145

Table of Contents
Named Executive Officer, Holdings granted such Named Executive Officer two "matching" options to purchase shares of Holdings common stock. Apart
from the "matching" options, Holdings granted additional "standalone" options to each Named Executive Officer. The number of shares offered to and options
granted to each Named Executive Officer was determined by Holdings based on position in the organization, scope of responsibility, and size of business unit
or function that the Named Executive Officer oversees. While Holdings may, in its discretion, offer additional shares or grant additional options to our
executive officers, Holdings' practice to date has been to offer each executive only one opportunity to invest in Holdings stock and to receive options, and
none of the Named Executive Officers purchased shares or were granted options in 2008. The options held by the Named Executive Officers are set forth in
the "2008 Outstanding Equity Awards at Fiscal Year-End" table below.
Retirement Benefits
Employees, including the Named Executive Officers, are generally eligible to participate in the ServiceMaster Profit Sharing and Retirement Plan
("PSRP"). The PSRP is a qualified 401(k) defined contribution plan. We also maintain the ServiceMaster Deferred Compensation Plan ("DCP"), which is a
non-qualified supplemental plan designed to afford certain highly compensated employees (including the Named Executive Officers, executive officers and
certain other employees) the opportunity to defer additional amounts of compensation on a pre-tax basis, over and above the amounts allowed under the
PSRP. The Company provides this benefit because the Company wished to permit our employees to defer the obligation to pay taxes on certain elements of
the compensation that they are entitled to receive. All deferred amounts under the DCP are subject to earnings or losses based on the investments selected by
the individual participants. The Company believes that provision of this benefit is important as a recruitment and retention tool as many, if not all, of the
companies with which the Company competes for executive talent provide a similar plan to their senior employees.
Employee Benefits and Executive Perquisites
We offer a variety of health and welfare programs to all eligible employees, including the Named Executive Officers. The Named Executive Officers are
eligible for the same health and welfare benefit programs on the same basis as the rest of the Company's employees, including medical and dental care
coverage, life insurance coverage, and short- and long-term disability.
The Company limits the use of perquisites as a method of compensation and provides executive officers with only those perquisites that we believe are
reasonable and consistent with our compensation goal of enabling the Company to attract and retain superior executives for key positions. The perquisites
provided to our Named Executive Officers are memberships in social and professional clubs, certain spousal travel, Company-provided vehicles and, for our
CEO, personal use of Company aircraft. Expenses associated with relocation of newly hired executives are paid to certain executives pursuant to our
relocation policy and are based on standard market practices for executive level relocation.
The Company has established a policy regarding personal use of the Company aircraft (the "Aircraft Policy") by our CEO. The Aircraft Policy provides
that the CEO shall recognize taxable income for his personal use of the Company aircraft occurring in any year and shall reimburse the Company for personal
use of the Company aircraft exceeding fifty hours annually. Any amount so reimbursed to the Company shall be applied to reduce the CEO's taxable income
accordingly.
141