This excerpt taken from the XIDE DEF 14A filed Jul 24, 2009.
Short-Term Cash Incentive Compensation
The Committee believes that short-term cash incentive compensation that is based on performance, through the achievement of division and corporate goals, is an important component of overall executive cash compensation and aligns named executive officers goals with those of the shareholders. Target short-term cash incentive compensation is established annually as part of the review of total compensation. For the named executive officers, the Committee generally establishes annual short-term cash incentive compensation at 50% of base salary. Mr. Ulshs employment agreement provides target short-term cash incentive compensation at 125% of base salary and Mr. OLearys target is 65% of base salary. The Committee believes that the significantly higher targets for the CEO and COO, when compared to the Companys other named executive officers, are appropriate in light of their respective level of responsibility, and to ensure that their annual total cash compensation is competitive based on market survey data.
In addition, the Committee may, from time to time, approve lump sum payments to new employees upon their retention or to existing employees, including the named executive officers, upon assumption of additional responsibilities. The Committee did not approve any of these lump sum payments for named executive officers in fiscal 2009.