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This excerpt taken from the EYE DEF 14A filed Apr 20, 2006. Management Bonus Program We implemented the 2002 Bonus Plan in July 2002, immediately after our spin-off. The plan promotes our pay-for-performance philosophy by providing executives with direct financial incentives in the form of annual cash bonuses to achieve corporate financial, operational and individual performance goals. Achievement of corporate objectives determines the funding of the plan and is measured by pre-established financial performance targets. Once funded, the bonus pool is allocated to our business units based on each unit’s respective results, and then within the business units the achievement of individual objectives determines the amount of the bonus pool awarded to individual executives. 21 For 2005, the committee established two corporate financial goals tied to operating income (with 85% weighting) and revenue (with 15% weighting). The committee determined that the corporation met or exceeded threshold goals and funded the bonus program. The bonus pool generated was then allocated to the business units and functions. On February 8, 2006, the committee awarded specific bonuses to AMO’s executive officers upon consideration of individual officer performance in 2005 against pre-established objectives. For 2006, the committee has established two corporate financial goals for management bonus funding. They are operating income (with 75% weighting and adjusted to exclude certain extraordinary items) and revenue (with 25% weighting). In addition, the committee approved the following target bonus amounts for each of the following named executive officers, expressed as a percentage of annual base pay: Mr. Meier (70%), Dr. Heidrich (55%), Mr. Trenary (55%), and Ms. Rady (45%). The committee also has the discretion to update the quantitative targets to account for extraordinary events and to include or exclude extraordinary, unusual or non-recurring items in its calculation of the company’s results for the year. |
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