CompUSA 2007 Annual Report Download - page 21

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16
KL2 2553275.3
Compensation of Executive Officers in 2007
In determining the compensation of the Company’s Chief Executive Officer for the year 2007 and approving
the annual compensation of the Company’s other executive officers, the Committee considered, among other factors,
the increase in Company revenues from the prior year (19%), the increase in income from operations from the prior
year (54%), the increase in net income from the prior year (54%) and the increase in diluted earnings per Share
(51%). The Compensation Committee also considered the timely filing of the Company’s annual and quarterly SEC
reports for the year 2007 and the attestation report of Ernst & Young, an independent registered public accounting
firm, on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2007 (a
copy of which is included in the Company’s Annual Report on From 10-K for the fiscal year ended December 31,
2007).
Compensation Arrangements of Certain Executive Officers
Richard Leeds
Richard Leeds, Chairman and Chief Executive Officer of the Company, has no employment agreement. Mr. Leeds
received an annual salary of $442,600 in 2007 and $420,000 in 2006. He received a cash bonus of $600,000 in both
2007 and 2006. Mr. Leeds received $19,843 in other compensation in 2007 and $27,795 in 2006. He received no
stock options or other stock-based incentive grants in either 2007 or 2006.
Robert Leeds
Robert Leeds, Vice Chairman of the Company, has no employment agreement. Mr. Leeds received an annual salary
of $405,365 in 2007 and $389,881 in 2006. He received a cash bonus of $400,000 in 2007 and $250,000 in 2006.
Mr. Leeds received $18,923 in other compensation in 2007 and $21,890 in 2006. Mr. Leeds received no stock
options or other stock-based incentive grants in either 2007 or 2006.
Bruce Leeds
Bruce Leeds, the Vice Chairman of the Company has no employment agreement. Mr. Leeds received an annual
salary of $405,365 in 2007 and $389,881 in 2006. He received a cash bonus of $400,000 in 2007 and $250,000 in
2006. Mr. Leeds received $21,912 in other compensation in 2007 and $26,061 in 2006. Mr. Leeds received no stock
options or other stock-based incentive grants in either 2007 or 2006.
Gilbert Fiorentino
On October 12, 2004, the Company entered into an employment agreement with Gilbert Fiorentino, the President of
SYX Services Inc. and a director of the Company. The agreement was effective as of June 1, 2004 and expires on
December 31, 2013 unless terminated sooner under the terms of the agreement. The Company may terminate the
agreement without cause on 30 days’ notice provided certain severance payments are made (see below).
Mr. Fiorentino’s compensation consists of a base salary at the initial annual rate of $400,000 (which is increased by
five percent per year subject to certain Company earnings requirements) and a performance bonus of $250,000 per
year (similarly increasing annually) provided that he meets certain performance criteria previously established from
time to time by the Executive Committee of the Board of Systemax. He is also eligible for an additional bonus, in
the discretion of the Board. In 2007 Mr. Fiorentino received $456,484 in annual salary and a cash bonus of
$1,983,000. In 2006 Mr. Fiorentino received $453,923 in annual salary and a cash bonus of $950,000. He received
$624,916 in other compensation in 2007 (including a $600,000 dividend equivalent payment) and $37,709 in other
compensation in 2006. His cash bonus in 2007 was determined based on the increase in 2007 in the operating
income (EBITDA) of the Technology Products segment of the Company as compared with 2006. Mr. Fiorentino
received no stock options or other stock based incentive grants in 2007. In 2006 he was granted an option to
purchase 166,667 shares of Company stock pursuant to his employment agreement.