Papa Johns 2008 Annual Report Download - page 98

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91
19. Equity Compensation (continued)
Restricted Stock
In 2008, we granted shares of restricted stock that were approximately 60% performance-based and 40%
time-based while in 2007 and 2006, we granted stock that was 100% performance-based. These restricted
shares are intended to focus participants on our long-range objectives, while at the same time serving as a
retention mechanism. The shares awarded in 2008, 2007 and 2006 have a three-year cliff vesting period.
The performance-based shares vest based upon the Company’s achievement of compounded annual
growth rate (CAGR) of consolidated corporate operating income from continuing operations, as defined.
The fair value of the restricted stock is based on the market price of the Company’s shares on the grant
date.
Information pertaining to restricted stock activity during 2008, 2007 and 2006 is as follows (shares in
thousands):
Weighted
Average
Grant-Date
Shares Fair Value
Total as of December 25, 2005 - -$
Granted 28 32.65
Forfeited (1) 32.65
Vested - -
Total as of December 31, 2006 27 32.65$
Granted 133 33.50
Forfeited (15) 33.56
Vested - -
Total as of December 30, 2007 145 33.33$
Granted 146 26.28
Forfeited (8) 31.13
Vested - -
Total as of December 28, 2008 283 29.84$
20. Employee Benefit Plans
We have established the Papa John’s International, Inc. 401(k) Plan (the “401(k) Plan”), as a defined
contribution benefit plan, in accordance with Section 401(k) of the Internal Revenue Code. The 401(k)
Plan is open to all employees who meet certain eligibility requirements and allows participating
employees to defer receipt of a portion of their compensation and contribute such amount to one or more
investment funds. At our discretion, we contributed a matching payment of 2.1% in 2008 and 2007 and
1.5% in 2006 of a participating employee’s earnings, which is subject to vesting based on an employee’s
length of service with us. Costs of the 401(k) Plan recognized in 2008, 2007 and 2006 were $1.1 million,
$920,000 and $372,000, respectively.