AutoZone 2012 Annual Report Download - page 41

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Proxy
reasonably likely to have a material adverse effect on the company. The various mitigating factors which
support this conclusion include:
• Oversight of the management incentive plan and all stock-based compensation by the Compensation
Committee of the Board of Directors;
• Senior management oversight of key plans and programs, including approving target level payouts,
setting financial and operating goals, and approving payouts;
• Administration and oversight of plans and programs by multiple functions within the Company (e.g.,
finance, operations and human resources);
• Interrelationship between measures (e.g., correlation between economic profit performance and
appreciation in the per-share price of AutoZone’s stock);
• Vesting and stock ownership requirements which encourage long-term perspectives among participants;
and
• A preference for performance measures which result in payments only upon achievement of ultimate
financial results.
31