American Home Shield 2009 Annual Report Download - page 155

Table of Contents
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 Named Executive Officer only
one opportunity to invest in Holdings' common stock and to receive options. Mr. Crenshaw and Mr. Donly are the only Named Executive Officers who
purchased shares and received options in 2009. The options held by the Named Executive Officers are set forth in the "Outstanding Equity Awards at Fiscal
Year-End (2009)" table below.
LTIP
In 2007, the Company's then-standing Compensation Committee approved the LTIP, which replaced the Company's equity-based compensation plan that
was suspended due to the then-pending sale of the Company. The goal of the LTIP was to link compensation of key employees to the achievement of
performance goals established by the Compensation Committee relating to consolidated pre-tax income and revenue of the Company and its subsidiaries over
a three-year performance period beginning January 1, 2007, and ending December 31, 2009. Individual grant levels were based on an evaluation of historical
compensation levels, taking into consideration internal compensation equity and start date, where relevant, and were delivered in the form of units with a
target cash value of $100 per unit. There was no payment to the Named Executive Officers under LTIP for the performance period ending December 31,
2009, since threshold levels of performance required for payment were not attained. There have been no additional LTIP grants made since 2007. Our Board
believes that the financial opportunities under the MSIP are significant and no additional long-term incentive opportunity needs to be provided at this time.
This analysis will be evaluated each year based upon the competitive marketplace.
Retirement Benefits
Employees, including the Named Executive Officers, are generally eligible to participate in the ServiceMaster Profit Sharing and Retirement Plan (the
"PSRP"). The PSRP is a qualified 401(k) defined contribution plan. We also maintain the ServiceMaster Deferred Compensation Plan (the "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 wishes 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 and, for our Chief Executive Officer, personal use of Company
aircraft and certain
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