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This excerpt taken from the XIDE DEF 14A filed Jul 24, 2009. Benchmarking
The Committee’s independent compensation consultant
provides compensation data for named executive officers using
general market data, as well as peer group data. The criteria
for the selection of the peer group include industry, size
(based on revenue, market capitalization, total assets and
number of employees), and companies with comparable business
models, operations and complexities. During fiscal 2009, the
Committee evaluated the Company’s peer group and made a
number of changes to reflect companies with median revenues and
industry focus more closely aligned with the Company. Based on
the recommendation from its independent compensation consultant,
the Committee removed the following companies from its fiscal
2009 peer group: Dana Holding Corporation, Dura Automotive, both
of which are in various stages of bankruptcy proceedings; Hayes
Lammerz International Inc., which was determined to have an
incompatible business mix and market capitalization; and
Standard Motor Products, Inc, which had much smaller operations
compared to the Company and other components of the peer group.
The Committee also added AMETEK, Inc., Amphenol Corporation and
Brunswick Corporation, which are believed to be better aligned
with the Company and other components of the peer group. The
companies comprising the peer group for fiscal 2009 are listed
below:
The Committee uses peer company data to evaluate the
appropriateness of the components of our compensation program,
including the following: director compensation; the allocation
of various forms of long-term compensation awards; and the type
of financial metrics used for short-term cash incentive awards
and long-term equity compensation awards. The Committee uses
this data so that the components of compensation programs are
competitive with those of our peer group that will encourage
superior performance, as well as attract and retain employees.
Using the criteria discussed above, the Committee periodically
reviews and evaluates, with assistance from its independent
compensation consultant, the appropriateness of the companies
comprising the peer group.
In addition to our peer group data, the EVP-HR used the
following database tool to benchmark base salary and total cash
compensation for our named executive officers: Top Management
Compensation Calculator by Watson Wyatt Data Services. The
database includes compensation market data on a number of
companies from a number of different industries, and allows the
Committee to evaluate proposed named executive officer
compensation under various industry metrics: type of industry;
global geographic scope; headcount; and revenues.
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