Neiman Marcus 2007 Annual Report Download - page 59

Table of Contents
• Annual Incentive Compensation
For fiscal year 2008, the financial component of the annual bonus for each named executive officer was based on EBITDA,
return on invested capital and/or inventory turnover performance, as described above.
Minimum, target, and maximum bonuses are paid based on a percentage of base salary. If the target performance level is
achieved, each named executive officer will receive the percentage of base salary indicated below. If the maximum level is achieved,
the annual bonus incentives are paid at 200% of the target percentage. Minimum levels are payable at 25% of the target percentage.
If the results are below the minimum performance level, no bonus award is paid. Results between minimum, target, and maximum are
extrapolated. The target award levels and relative weightings between Company, division, and individual results for 2008 are as
follows:
Target Bonus
As Percent of Relative Performance Weighting
Name Salary Company Division Individual
Burton M. Tansky 100%75% — 25%
Karen W. Katz 75% 30% 50% 20%
James E. Skinner 60% 75% — 25%
Brendan L. Hoffman 60% 30% 50% 20%
James J. Gold 60% 30% 50% 20%
For fiscal 2008, the Compensation Committee determined that with the exception of Mr. Gold, performance levels were
below the minimum performance level set at the beginning of the fiscal year. Target bonus opportunity and actual bonus awards paid
for fiscal year 2008 annual performance are as follows:
Bonus Target
2008 Annual
Percent of Incentive
Name 2008 Salary ($) Salary $ Value Award ($)
Burton M. Tansky $ 1,500,000 100% $ 1,500,000 $ —
Karen W. Katz 875,000 75% 656,250 —
James E. Skinner 625,000 60% 375,000 —
Brendan L. Hoffman 530,000 60% 318,000 —
James J. Gold 490,000 60% 294,000 253,546
Actual amounts paid to the named executive officers in fiscal year 2008 as illustrated above are listed in the Summary
Compensation Table under the heading "Non-Equity Incentive Plan Compensation" on page 59 of this section.
In addition, discretionary bonuses have been awarded by the Compensation Committee to certain of the named executive
officers from time to time to reward these individuals for exemplary performance. No such discretionary bonuses were awarded in
fiscal year 2008.
• Long-Term Incentive
Stock option grants were made to certain executive officers, including each of the named executive officers, on
November 29, 2005. As mentioned above, no grants of stock options have been made to the named executive officers since the initial
grant and none are anticipated except in the event of a promotion or a new hire. The stock options are discussed further beginning on
page 61 of this section under the heading "Outstanding Equity Awards at Fiscal Year End."
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