PLCE » Topics » Executive Compensation Policies

This excerpt taken from the PLCE DEF 14A filed May 15, 2006.

Executive Compensation Policies

During our fiscal year 2004, the compensation committee began, in consultation with an independent consultant, a review of our executive compensation program, including a review of the competitiveness of each component of our program. During our fiscal year 2005, the compensation committee completed its review and decided to:

    establish and adopt, subject to stockholder approval, the Annual Management Incentive Bonus Plan (as described under the caption, "Proposal No. 3—Adoption of Annual Management Incentive Bonus Plan"); and

    implement a Long-Term Incentive Compensation Program (as described below under the caption, "Long-Term Incentive Compensation Program").

Each of these components of our executive compensation program is intended to achieve two principal objectives:

    continue our historical practice of linking compensation with performance, including both our financial performance and an assessment of each senior executive's individual performance; and

    improve the clarity of our compensation practices and objectives for both employees and stockholders.

During fiscal 2005, our 2005 Equity Incentive Plan was approved by our stockholders. Our 2005 Equity Incentive Plan allows us to grant stock options, stock appreciation rights, restricted stock, deferred awards and performance awards. In connection with the adoption of our 2005 Equity Incentive Plan, the compensation committee agreed to the following:

    not to issue any additional stock options under our 1996 Stock Option Plan or 1997 Stock Option Plan;

    to limit the aggregate grant of awards under our 2005 Equity Incentive Plan during fiscal years 2005, 2006 and 2007 to less than 2.5% of the aggregate number of our shares of our common stock that are outstanding on the last day of our 2005, 2006 and 2007 fiscal years;

    to amend our 2005 Equity Incentive Plan (i) to grant 15,000 options to a director on the date of his or her initial election to the Board of Directors, and (ii) on the last day of our fiscal year to grant 6,000 options to each director; and

    that awards based on continued employment will have a minimum vesting period of three years from the date of grant; and awards based on satisfaction of performance factors, will have a minimum vesting period of one year from the date of grant.

25


This excerpt taken from the PLCE DEF 14A filed May 13, 2005.

Executive Compensation Policies

In fiscal 2004, the Compensation Committee hired an independent consultant to review the Company's executive compensation program, including a review of the competitiveness of each component of the Company's program. The Company's strategy with respect to each component of the executive

24



compensation program, base salary, annual bonus and long-term incentive grants, is intended to achieve two principal objectives:

    continue the Company's historical practice of linking compensation with performance, including both the Company's financial performance and an assessment of each senior executive's individual performance; and

    improve the clarity of the Company's compensation practices and objectives for both employees and stockholders.

Base Salary

Base salaries are established based on the scope of responsibilities, taking into account competitive market compensation paid by other companies for similar positions. The Compensation Committee sets base salaries at a level designed to attract and retain superior leaders. Base salaries are reviewed annually, and adjusted from time to time to recognize outstanding individual performance, promotions and competitive compensation levels.

During fiscal 2004, the Compensation Committee took action to adjust the compensation of two executive officers named in the Summary Compensation Table, Mario Ciampi and Steven Balasiano. Mr. Ciampi and Mr. Balasiano received increases in connection with promotions.

Annual Bonuses for Senior Executive Officers and Other Bonus Eligible Employees

Bonus targets for senior executive officers are based on an assessment of performance compared against the financial, operational and strategic goals and objectives established for the executive. Annual bonuses are paid to provide incentive and reward superior performance for the year. In the past, we have paid bonuses in cash twice a year. Beginning in fiscal 2005, we will pay bonuses annually for the prior year's performance based upon meeting the specific financial and other key goals established for the Company and the bonus target established for each eligible employee.

Long-Term Incentive Compensation Program for Fiscal 2004

In the past the Company made annual stock option grants to eligible employees, including our senior executive officers. Each stock option permits the holder, generally for a period of ten years, to purchase one share of the Company's stock from the Company at the exercise price, which is the price of the Company's stock on the date of grant. Stock options have value only to the extent the price of the Company's stock on the date of exercise exceeds the exercise price. Stock options granted in 2004 generally become exercisable in five equal annual installments beginning one year after the grant date. The number of stock options granted to our five most highly paid senior executive officers in 2004 and the value of these awards are shown in the Options Granted During Last Fiscal Year summary table.

"Executive Compensation Policies" elsewhere:

Saks (SKS)
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki