This excerpt taken from the AN DEF 14A filed Apr 28, 2006.
Our goals in administering AutoNations compensation program for executive officers are to ensure that AutoNation is able to attract and retain highly-skilled executives and to provide a compensation program that incentivizes management to optimize long-term business performance, deploy capital productively and increase long-term stockholder value. The companys approach to compensating other management employees generally is based on a similar philosophy. We review executive compensation annually and make appropriate adjustments based on AutoNations financial and operating performance, senior executive managements performance in executing our business strategy, managing our day-to-day business operations and optimizing our long-term business performance and stockholder value, compensation levels of similarly positioned executives in comparable specialty retail companies, changes in an executives duties and responsibilities and individual executive performance. We compared the compensation levels for our senior executive officers to the comparative pay of other companies utilizing a competitive market assessment prepared by a nationally recognized independent compensation consulting firm. Based on the market assessment, the compensation levels for our senior executive officers, in the aggregate, are reasonably competitive.