This excerpt taken from the AAP DEF 14A filed Apr 13, 2005.
general compensation philosophy is to ensure that:
compensation for executive officers is tied to annual and long-term company performance
goals that are structured to align the interests of executive officers with those of
a significant portion of total compensation is equity-based, thereby further aligning the
interests of executive officers and Advances stockholders; and
executive compensation is comparable with compensation levels at major competitors so that
Advance can attract, retain, and motivate superior management talent who are essential to
Advances long-term success.
are two primary types of compensation provided to Advances executive officers:
annual compensation, which includes (1) base salary intended to provide a stable annual
salary at a level consistent with individual contributions, and (2) annual incentive
bonuses intended to link such bonuses to Advances performance; and
long-term incentive compensation, which includes stock options or other equity based
compensation intended to encourage the maximization of stockholder value.