Ingram Micro 2007 Annual Report Download - page 27

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Base Salary
Intent of Base Salary. Base salaries are intended to compensate our NEOs for their service as senior members
of our management team regardless of shareholder returns or Company performance relative to financial objectives.
Salaries are considered an important element of compensation to attract and retain executive talent in an extremely
competitive marketplace.
The process for the review of executive officer base salaries includes:
• For executive roles, we establish a series of salary grades and ranges, with a salary range “midpoint” that is
designed to reflect market median levels. Salary grades for our executive officer positions are aligned with
salary ranges of market median officer positions that most closely approximate their job responsibilities at
Ingram Micro.
• Each NEO is eligible for a salary review annually as are all other management associates. The Committee
reviews and takes into consideration recommendations for changes to salaries from our Chief Executive
Officer and their independent outside advisor. The Chief Executive Officer’s recommendations are based on
a number of considerations, including the executive’s scope of responsibilities within the organization, his
personal assessment of the executive’s performance and overall contribution to the achievement of Ingram
Micro’s short-term and long-term objectives, the executive’s pay history, the executive’s current salary
versus the competitive median levels reported, and internal equity considerations. However, there is no set
formula or weighting assigned to these factors. The Chief Executive Officer discusses his recommendations
with the Committee in executive session and the Committee makes a final determination of base pay for each
NEO upon completion of these discussions.
• The Chief Executive Officer’s salary is determined by the Committee based on their review of his overall
performance, data on competitive compensation levels for Chief Executive Officers in the comparator group
of companies, proxy information for direct competitors, as well as Ingram Micro’s overall Company
performance. These considerations are discussed among the Committee members and their independent
outside advisor (Cook) in executive session of the Committee. No members of management are present
during these deliberations. In addition, management does not make any recommendations to the Committee
on compensation of the Chief Executive Officer.
The Committee met in November 2006 and approved the following compensation actions effective for fiscal
year 2007:
• The average 2007 base salary increase for the NEOs, as a group, was 7.0%.
• Based on a review of the compensation mix for the comparator group of companies, the Committee
increased the annual incentive award target percentage for the Chief Executive Officer from 90% to 100% of
base salary; the President and Chief Operating Officer’s from 85% to 90%; Executive Vice Presidents from
65% to 70% and Senior Vice Presidents from 50% to 55%.
The Committee met in November 2007 and approved the following compensation actions effective for fiscal
year 2008:
• The average 2008 base salary increase for the NEOs, as a group, excluding Messrs. Murai and Koppen, who
have resigned and retired from the Company, respectively, was 5.1%.
• The annual incentive award target percentage for our Chief Executive Officer was raised from 100% to
125% of base salary based on a review of the compensation mix for the comparator group of companies.
Messrs. Monié, Koppen, and Murai did not receive a salary increase for 2008 because Mr. Monié received a
base salary increase in August 2007 in recognition of his promotion to the position of President and Chief Operating
Officer, Mr. Koppen had announced his retirement, and Mr. Murai had announced his resignation.
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