Ingram Micro 2007 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2007 Ingram Micro annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

served in each of these positions. For the period of time he served as President, Ingram Micro Asia-Pacific, he
earned a bonus equal to 192.4% of his target award under the Regional Officer program as described below. For the
period he served as our President and Chief Operating Officer, he earned a bonus equal to 105.6% of his target
award under the Corporate Officer program previously described. Following are the Corporate NEOs’ payout
matrices for 2007:
2007 Annual Executive Incentive Award Program (Corporate Results)
A. Annual Consolidated Worldwide Pretax Profit = $383,062,000 = 11.1% of Award Earned
B. Average Monthly Worldwide Working Capital Days = 24.4 days = 9.4% of Award Earned
C. Weighted Worldwide Operating Unit Achievement X 80% = 85.1% of Award Earned
Total Award Earned = (A + B + C) = 105.6% of Target Award (See following tables)
A. Consolidated Worldwide Pretax Profit Payout
Minimum
$280,837,000
Target (Plan)
$416,055,000
Maximum
$582,477,000
Pretax Profit as a % of Target ...................... 67.5% 100% 140%
% of Incentive Award Earned ...................... 6.5% 13% 26%
PLUS (+)
B. Average Monthly Worldwide Working Capital Days Payout
Minimum
27.1 days
Target (Plan)
25.2 days
Maximum
22.7 days
Working Capital Days as % of Target* .................. 107.5% 100% 90%
% of Incentive Award Earned* ........................ 3.5% 7% 14%
NOTE: No payout is earned if the Company’s minimum Pretax Profit threshold is not achieved, even if the
working capitals days target is achieved (i.e., threshold is 67.5% of 2007 plan pretax profit). Incentive Awards
for pretax profit and working capital days achievement that fall between the minimum, target and maximums
noted, will be interpolated on a straight-line basis.
PLUS (+)
C. Sum of Operating Unit Payout
Operating Unit
*Revenue
Weighting
Achievement
Obtained
% of Target
Award
Earned
North America .......................... 43.6% X 86.3% X 80% = 30.1%
Europe................................ 34.2% X 84.8% X 80% = 23.2%
Latin America .......................... 4.6% X141.7% X 80% = 5.2%
Asia Pacific ............................ 17.6% X188.8% X 80% = 26.6%
Total Corporate ......................... 100.0% 85.1%
* Actual revenue weighting is based on each Operating Unit’s 2007 budgeted revenue as a percent of Total
Corporate consolidated operating plan. Regional revenue weightings are presented for illustrative purposes only
as individual country revenue targets are confidential competitive information. This portion represents 80% of
Target Incentive Award payout. No payout is earned if the Company’s minimum Pretax Profit threshold is not
achieved (i.e., threshold is 67.5% of 2007 plan pretax profit).
Regional NEOs. Under the terms of the 2007 Annual Executive Incentive Award Program, NEOs who had
responsibility for a given operating region (the “Regional NEOs”) (i.e., Messrs. Koppen and Maquet) earned an
26