LeapFrog 2004 Annual Report Download - page 140

EXECUTIVE COMPENSATION
Summary Compensation Information
The following table shows for 2002, 2003 and 2004, compensation awarded or paid to, or earned by, our
Chief Executive Officer and our other four most highly compensated executive officers at December 31, 2004,
also referred to as the “named executive officers.” Mr. Wood is included in the following table as he served as
our Chief Executive Officer for a portion of 2004. Mr. Forsyth resigned as our Chief Operating Officer in
February 2005.
Summary Compensation Table
Annual Compensation
Long-Term
Compensation Awards
Name and Principal Position Year
Salary
($)
Bonus
($)
Other Annual
Compensation
($)
Restricted
Stock
Awards
($)
Securities
Underlying
Options (#)
All Other
Compensation
($)(16)
Thomas J. Kalinske(1) ........
Chief Executive Officer and
Director
2004
2003
2002
$469,812
$269,000
$265,000
— (2)
—
$135,000
$ 9,250(3)
$ 8,890(3)
$ 3,600(3)
—
—
—
190,000
—
250,000
$5,650
$5,650
$5,650
Jerome J. Perez(4) ...........
President and Director
2004
2003
2002
$311,634
—
—
$ 50,000(5)
—
—
$243,207(6)
—
—
$540,000(7)
—
—
400,000
—
—
—
—
—
Paul A. Rioux(8) ............
Advisor to Chief Executive
Officer, Vice Chairman and
Director
2004
2003
2002
$307,300
$374,000
$437,041
$ 47,250
—
$135,000
$ 8,688(9)
$ 8,356(9)
$ 7,810(9)
—
—
—
—
—
150,000
$8,725
$8,725
$8,265
Timothy M. Bender ..........
President, Worldwide Consumer
Group
2004
2003
2002
$283,900
$263,900
$250,000
—
—
$125,000
$ 10,717(10)
$ 10,800(10)
$ 10,550(10)
—
—
—
84,000
—
50,000
—
—
—
Michael C. Wood(1) .........
Former Chief Executive Officer
and Director
2004
2003
2002
$239,321(11)
$277,100
$268,250
—
—
$195,000(12)
$ 5,641(13)
$ 8,900(13)
$ 7,551(13)
—
—
—
—
—
—
$1,970
$1,970
$1,970
G. Frederick Forsyth(14) ......
Former Chief Operating Officer
2004
2003
2002
$300,000
$123,846
—
—
—
—
$ 10,300(15)
$ 3,163(15)
—
—
—
—
42,000
250,000
—
—
—
—
(1) Mr. Wood served as our Chief Executive Officer from March 2002 to February 2004. Mr. Kalinske became Chief
Executive Officer in February 2004.
(2) Under the terms of his employment agreement, Mr. Kalinske was entitled to receive a guaranteed bonus in 2004 of
$67,500. Mr. Kalinske waived his right to this guaranteed bonus.
(3) Mr. Kalinske received $2,050 and $1,690 in matching grants made to his 401(k) savings plan by LeapFrog in 2004 and
2003, respectively. In 2004, 2003 and 2002, Mr. Kalinske received $7,200, $7,200 and $3,600, respectively, in
automobile allowances.
(4) Mr. Perez joined LeapFrog as President in February 2004.
(5) Under the terms of his employment agreement, Mr. Perez received a signing bonus of $50,000. In addition to this signing
bonus, under the terms of his employment agreement Mr. Perez was also entitled to receive a guaranteed bonus of
$280,000. Mr. Perez waived his right to this guaranteed bonus.
(6) In 2004, Mr. Perez received $6,955 in automobile allowances. The balance of the other annual compensation received by
Mr. Perez is related to relocation expenses that, pursuant to the terms set forth in Mr. Perez’s employment agreement
with LeapFrog, the company agreed to pay. Such expenses include $74,485 in closing costs for the purchase of Mr.
Perez’s home, $87,434 in mortgage interest differential payments and tax gross-ups related to such interest payments,
and other relocation expenses such as temporary living expenses and the packing and shipping of household items.
(7) The value of this award was calculated by multiplying the closing market price of LeapFrog’s unrestricted common stock
on the date of grant, November 10, 2004 ($13.50), by the number of shares awarded (40,000). As of December 31, 2004,
Mr. Perez held an aggregate of 40,000 shares of restricted stock valued at $544,000, calculated by multiplying the
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