This excerpt taken from the BYFC DEF 14A filed May 14, 2008.
The purposes of the Plan are to (i) attract and retain well qualified employees; (ii) motivate the Companys key employees and directors, by means of appropriate incentives, to achieve the Companys long range goals; (iii) provide incentive compensation opportunities that are competitive with those of other similar companies; and (iv) further identify Plan Participants interests with those of the Companys shareholders through compensation that is based on increases in the value of the Companys common stock (Stock). More generally, the Board believes the Plan will promote the long term financial interest of the Company, including growth in value of the Companys equity and enhancement of long term shareholder return.
The Board has proposed the Plan because it believes in the merits of linking employees overall compensation opportunities to the enhancement of long-term stockholder returns. The Company uses equity-based compensation, such as options and other Company Stock related awards, as key elements of its compensation packages. The Board of Directors has approved the Plan, and is recommending it to stockholders for approval because the Company believes it is important for the employees and directors of the Company and its subsidiaries to have an equity interest in the Company, and to be eligible to receive cash incentive awards. Adoption of the Plan will help achieve this goal and is necessary in order for the Company to continue making equity awards to employees and directors at competitive levels.
This excerpt taken from the BYFC DEF 14A filed Apr 30, 2007.
The Board of Directors of Broadway Federal Bank (the Company) has delegated to the Compensation Committee strategic and administrative responsibility on a broad range of overall Company compensation, benefits and stock option issues.
The Compensation Committee is responsible for the review and reporting to the Board of Directors on all executive compensation matters that impact the Company and its subsidiaries.
It is the Committees responsibility to ensure that the Chief Executive Officer, other officers and key management of the Company are compensated in a manner that will attract, motivate and retain the best possible management team for the shareholders of the Company.
It is the Committees responsibility to ensure that compensation paid is consistent with the strategic goals of the Company; is based on performance against predetermined goals; is internally equitable and competitive, and is consistent with all regulatory requirements.
The Committee is also responsible for the communication to shareholders regarding the Companys compensation philosophy and the reasoning behind its compensation policies by producing an annual report on executive compensation for inclusion in the Companys proxy statement in accordance with the rules and regulations of the Securities and Exchange Commission.