AutoNation (AN)

 

In order to further align the long-term interests of management and stockholders and to ensure an owner-oriented culture, the Committee believes that our senior executive officers should have a significant financial stake in our Company. Accordingly, in February 2006, the Board of Directors adopted a policy setting forth its expectation that the CEO and the President and Chief Operating Officer will attain ownership of our common stock with a fair market value of not less than four times his or her annual base compensation, and each Executive Vice President will attain ownership of AutoNation’s common stock with a fair market value of not less than two times his or her annual base compensation, in each case within five years of such person first becoming an executive officer or the adoption of this policy (February 7, 2006). Exceptions to this requirement may only be made by the Board of Directors under compelling mitigating circumstances. The Committee believes these ownership guidelines are an important tool in aligning the interests of our senior executive officers with the long term interests of our stockholders. As of December 31, 2006, all of our senior executive officers had met their guidelines or were making significant progress toward their milestone guidelines as set forth in the chart below:

 

 

 

 

In order to further align the long-term interests of management and AutoNation’s stockholders, we believe that our senior executive officers should have a financial stake in AutoNation. Accordingly, in February 2006, the Board of Directors adopted a policy setting forth its expectation that the Chief Executive Officer and the Chief Operating Officer will attain ownership of AutoNation’s common stock with a fair market value of not less than four times his annual base compensation, and each Executive Vice President will attain ownership of AutoNation’s common stock with a fair market value of not less than two times his annual base compensation, in each case within five years of such person first becoming an executive officer or the adoption of this policy (February 7, 2006).