This excerpt taken from the CLX DEF 14A filed Oct 4, 2006.
ANNUAL BASE SALARY. We determine annual base salaries for executive officers using the following criteria: (1) the individuals performance; (2) any promotions resulting in increases in responsibility; (3) parity to market; and (4) equity in relationship to other executive positions within the Company.
To determine parity to market, we consider the competitiveness of the compensation package of the Companys executive officers compared to a compensation comparator group.
Surveys are conducted of benchmark positions in the compensation comparator group, consisting of similar-sized branded consumer products companies, most of which compete with the Company in one or more of its primary businesses or compete with the Company for management talent. We annually review the composition of the compensation comparator group to ensure that it is relevant and to make appropriate adjustments.
For fiscal year 2006, the compensation comparator group was:
* No longer part of compensation comparator group as a result of its sale.
For fiscal year 2006, we established salaries for executive officers that were generally at the 50th percentile or median level of the compensation comparator group benchmark positions based upon factors including the executive officers time in position, performance as judged by his or her immediate superior and the chief executive officer, and parity to market. On an annual basis, we determine the chief executive officers salary and performance in consultation with the full board of directors. Taking into consideration recommendations by the chief executive officer, we determine the salary and performance of the Companys other executive officers.