Neiman Marcus 2010 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2010 Neiman Marcus 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 185

  • 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
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185

Table of Contents
Other
The Company has change of control provisions in its Management Incentive Plan that may provide for accelerated vesting
and/or distributions in certain circumstances and these provisions apply equally to all participants in the plans, including the named
executive officers, except to the extent an executive is party to an individual agreement that provides otherwise.
Consideration of Tax and Accounting Treatment of Compensation
Internal Revenue Code §409A
The American Jobs Creation Act of 2004 added a new Section 409A to the Internal Revenue Code, as amended (the "Code"),
which applies to compensation deferred under a nonqualified deferred compensation plan after December 31, 2004. Compliance with
the new Section 409A became fully effective on January 1, 2009. Section 409A imposes restrictions on funding, distributions, and
election to participate in the affected plans. We believe our executive compensation plans and arrangements comply with
Section 409A.
Accounting for Stock-Based Compensation
We began accounting for stock-based payments in accordance with the provisions of ASC Topic 718, "Compensation —
Stock Compensation" on July 31, 2005. When setting equity compensation, the Compensation Committee considers the estimated
cost for financial reporting purposes of any equity compensation it is considering. However, the accounting impact does not have a
material impact on the design of our equity compensation plan.
Compensation Committee Report
The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis required by Item
402(b) of Regulation S-K with management and, based on such review and discussions, the Compensation Committee recommended
to the Board of Directors that the Compensation Discussion and Analysis be included in this Annual Report on Form 10-K.
THE COMPENSATION COMMITTEE
Jonathan J. Coslet, Chairman
Kewsong Lee
John G. Danhakl
61