This excerpt taken from the CTCM DEF 14A filed Apr 1, 2008.
Our compensation program includes eligibility for an annual performance-based cash bonus in the case of all executives and non-executive employees. The amount of the cash bonus generally depends
on our overall financial and operating performance. With respect to our sales personnel, however, annual cash bonuses are generally tied to the achievement of specific advertising sales targets.
For our executives, annual cash bonuses tend to be set as a percentage of base salary and be tied to the achievement of specified performance targets. In 2007, our CEO's bonus was subject to the achievement of the following objectives: a target level of consolidated operating income before depreciation and amortization, or OIBDA, in 2007; a target audience share for 2007 and specified personal goals relating to organizational matters. The first two objectives were weighted to each comprise 40% of the overall bonus target, with personal goals accounting for 20% of the total. Our CEO achieved the personal goals, but not the OIBDA and audience share objectives. As a result, he was awarded 20% of his maximum target bonus for 2007, or $66,000.
With respect to our COO, his bonus in 2007 was subject to the achievement of the following objectives: a target level of OIBDA in 2007; a target level of technical penetration for our networks in 2007 and specified personal goals relating to our company's growth strategy. The first two objectives were weighted to each comprise 40% of the overall bonus target, with personal goals accounting for 20% of the total. Our COO achieved the personal goals and the technical penetration objective but not the OIBDA objective. As a result, he was awarded 60% of his maximum target bonus, or $99,000.
Because our current CFO only joined us in December 2007, he was not eligible for a bonus in 2007.
Our Chief Investment Officer (CIO) joined us in May 2007 and is responsible for our acquisition efforts. His 2007 bonus was subject to our company signing definitive documentation relating to at least three qualifying acquisition transactions in 2007 or the first quarter of 2008. This objective was achieved and our CIO was awarded his maximum target bonus in 2007 of $250,000.
In 2007, the annual cash bonus of the General Director of our Television Station Groups was tied to revenues generated by our Television Station Groups in 2007. As a result of those revenue levels, he was awarded a bonus of $48,750 out of a potential maximum bonus of $75,000.
Our former CFO, Nilesh Lakhani, and our former Chief Accounting Officer, John Dowdy, both resigned in December 2007. As part of their separation agreements, which we agreed with them several months before their actual departures, we paid each of them their maximum 2007 target bonuses of $256,667 and $63,000, respectively.
For 2008, our Compensation Committee is working with our CEO, COO and CFO to determine specific company and individual performance criteria which must be achieved in order for these executives and other named executive officers to receive all or some portion of their target annual cash bonuses for 2008.