This excerpt taken from the DVN DEF 14A filed Apr 27, 2007.
The Committee reviews each executives base pay, bonus, and equity incentives annually with the guidance of the Committees Compensation Consultant. Available data indicates that over the last three years Mr. Nichols has earned total direct compensation near the market median, and the executive officers as a group have earned total direct compensation at 119% of market median and 82% of the 75th percentile of the total direct compensation paid to comparable executives at the comparison companies. It is expected that Mr. Nichols bonus and the long-term incentives awarded to Messrs. Nichols and Richels will result in them receiving total direct compensation in line with our goal of paying total direct compensation between the 60th percentile and the 75th percentile.
In addition to these direct compensation elements, the Committee also reviews the deferred compensation program, perquisites and other compensation, and payments that would be required under various severance and change-in-control scenarios. In connection with the 2006 review, the Committee determined that these elements of compensation were reasonable in the aggregate.