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For fiscal 2010, the internal and external factors that comprised our Executive Compensation Framework were as
follows:
Factor Description
Internal Job Value The internal value of the position relative to other executive officer
positions, based on the primary job responsibilities, expected scope
and nature of the job’s impact — relative rank within the
organization depends upon the extent to which the executive will be
accountable for specific strategic and operational challenges.
Personal Attributes The executive’s industry and functional knowledge, intuition and
insight, diversity of experience, entrepreneurial disposition and
personal networks — in order to be considered for compensation
purposes, these factors must be highly related to the success of the
business strategies to be led by the executive.
Leadership/Values The executive’s demonstration of our values, and ability to inspire
and influence others.
Talent Development The executive’s ability to cultivate talent that enhances business
results, including succession planning.
Existing Compensation Arrangements The executive’s outstanding equity awards, performance-based
incentives and compensation history.
External Peer Group Observations Includes publicly available information regarding actions taken by
peer companies to attract and retain senior leadership talent.
Market Data Includes compensation data for our peer group of companies (as
determined by the Compensation Committee), the Fortune 100
companies and other salary surveys.
We applied the external factors to each continuing may at times use our peer group of companies to
named executive officer based on a review of publicly evaluate:
available compensation data for our peer group of • The cost of the total direct compensation paid to
companies, the Fortune 100 and, in some instances, we our named executive officers;
also consulted survey data.(1) We used available
• The relationship between our financial
information and monitored actions taken by our peers
performance and the compensation paid to our
to evaluate market trends and to assess the overall
named executive officers; and
competitiveness of our executive compensation levels.
We did not, however, seek to establish total direct • The relative difficulty of our incentive
compensation that falls within a prescribed range performance targets.
relative to our peer group of companies or the
The criteria we used to determine our peer group of
Fortune 100. In addition, the Compensation Committee
companies in fiscal 2010 was unchanged from the
criteria we used in fiscal 2009. We continue to compare
ourselves predominantly to companies with the following
(1) The surveys we consulted, as well as the companies they surveyed, are listed in Appendix A.
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