CDW 2003 Annual Report Download - page 20

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encouraged to provide their thoughts and concerns regarding the Company directly to management, including
through our whistleblower hotline.
Incentive and Regular Compensation Arrangements
Compensation Arrangements. Our coworkers are compensated on a basis that rewards performance and the
achievement of identified goals. For example, account managers generally receive compensation pursuant to a
monthly commission schedule which is based on the gross profit they generate. Account managers have the
authority to negotiate and adjust prices for products, provided that the product is sold at a price which meets
established management guidelines and pursuant to various contracted prices, where applicable. Account
managers have the opportunity to achieve relatively high compensation levels and have historically shown
increased productivity as training and experience levels increase. In addition, most coworkers, excluding the
Company’s sales force, are eligible for monthly, quarterly or annual bonus programs that are tied to achieving
certain goals. We believe that these incentives positively impact the Company’s performance and profitability.
Coworker Bonus, Stock Option and Restricted Stock Plans. In addition to regular compensation, we
provide coworkers with additional long-term incentives designed to maximize performance and productivity.
To this end, we have adopted various stock-based compensation plans which enable coworkers to share in the
Company’s success through appreciation in the value of the Company’s stock. We reward every coworker with
an annual stock option grant as a part of their compensation.
Business Technology Centers
We currently operate two Business Technology Centers allowing local customers an opportunity to examine
products prior to purchase, meet face-to-face with our sales or technical coworkers and pick up products they
have ordered over the phone or online. One of these centers is located at our main facility in Vernon Hills,
Illinois, and the other is located in Chicago, Illinois. These centers occupy approximately 5,100 square feet
each.
Trademarks and Trade Names
We conduct business under a number of trademarks, trade names and service marks, some of which are
registered, including “CDW,” “CDW. The Right Technology. Right Away.,” “CDW@work,” “CDW-G,”
“CDW-G@work,” and “CDW Mac Warehouse.” We have taken steps to register and protect these marks and
believe they have significant value and are important factors in our marketing programs.
Certain Factors Affecting CDW’s Business
There are many factors that affect our business and the results of operations, some of which are beyond our
control. The following is a description of some important factors that may cause the actual results of operations
in future periods to differ materially from those currently expected or desired.
Our sales and profitability may be affected by changes in the economic environment and other factors.
There are many factors which could affect our business, including:
• the capital and technology spending patterns of existing and prospective customers;
• general economic trends;
• the addition of new customers and further penetration of our existing customer base;
• the productivity and retention of our account managers;
• the optimization of our product mix;
• the availability of products from our vendors;
• the successful development of new technology and products by equipment manufacturers and software
developers; and
• new competitors and new forms of competition.