CompUSA 2010 Annual Report Download - page 35

32
Group earnings targets started with a minimum bonus of approximately $600,000 at achievement of 70% of a target
earnings number (i.e. no bonus if earnings were less than 70% of target) and scaled to a maximum bonus of
approximately $3.4 million at achievement of 160% of the target. Achievement of the retail store and
financialreporting technology goals was measured on the basis of whether or not the goals are either accomplished
or not accomplished during the fiscal year.
Under the 2009 Plan, the Compensation Committee had set the following cash bonus target amounts for
each of our NEO’ s, assuming achievement of the 2009 financial, non-financial and special information technology
goals at 100% base case target levels.
Richard Leeds
$1,701,000
Bruce Leeds
$1,410,000
Robert Leeds
$1,410,000
Lawrence Reinhold
$696,000
Gilbert Fiorentino
$2,546,000
However, following completion of the results for fiscal 2009, Richard Leeds requested that his actual bonus
be reduced to $975,000 (a reduction of $787,000) and Bruce and Robert Leeds each requested that their actual
bonuses be reduced to $670,000 (a reduction of $787,000 each). The Compensation Committee approved these
reductions.
2008 NEO Cash Bonus Plan
Prior to the adoption of the 2009 Bonus Plan, cash bonuses for each of Messrs. Richard, Robert and Bruce
Leeds and for Mr. Reinhold were not based on specific metric targets but rather were subjectively determined by the
Compensation Committee based primarily on the Compensation Committee’ s belief that each of them provided
valuable contributions to the Company and its stockholders by managing the Company successfully and profitably
through a difficult economic environment, by implementing critical cost savings initiatives and effecting
opportunistic acquisitions to grow market share. Mr. Fiorentino’ s bonus prior to 2009 was based on a formula tied
to the earnings of the Technology Products Group.
Compensation of NEOs in 2010
In determining the compensation of the Company’ s Chief Executive Officer for fiscal year 2010 and
approving the compensation of the Company’ s other NEO’ s, the Committee considered, among the other factors
discussed above, the achievement of the performance based criteria established under the 2010 Bonus Plan.
The Compensation Committee determined that the Company and management had performed well,
particularly given trends in the general economic environment that had affected the Company’ s business throughout
fiscal 2010, and that management had executed well on strategic business initiatives to position the Company for
growth while managing risk. Based on Company and individual performance, the Compensation Committee
believes that compensation levels for fiscal year 2010 were consistent with the philosophy and objectives of the
Company’ s compensation programs. However, although the Company exceeded its 2010 sales target financial goal
and achieved each of its 2010 strategic and corporate governance non-financial goals, the Company did not achieve
its 2010 minimum adjusted operating income and return on invested capital financial goals. Accordingly, pursuant
to the 2010 Bonus Plan formulas, 2010 non-equity incentive plan/bonus compensation for each named executive
officer was paid at only 42% of the target level.
The 2010 threshold, target and maximum bonus amounts for each of our named executive officers are
found in the “Grant of Plan Based Awards” table on page 32.
Employment Arrangements of the Named Executive Officers
Richard Leeds
Richard Leeds has no employment agreement and is an “at will” employee. Base salary accounted for 55%