BGC » Topics » Components of Our Total Compensation

This excerpt taken from the BGC DEF 14A filed Mar 28, 2008.

Components of Our Total Compensation


In line with this philosophy, General Cable provides compensation programs with both fixed and variable components.  Fixed compensation, which consists of base salary and benefits, is designed to attract and retain executive talent.  Variable compensation depends in part upon both the Company’s and the individual’s performance thus aligning the executive’s interests with those of our stockholders.  The main elements of the Company’s 2007 executive officer compensation programs are outlined in the Table below.  


Compensation Element

Purpose

Key Considerations

Base Salary

Represents pay for an individual’s primary duties and responsibilities.

Base salaries are reviewed annually and are established based on scope of responsibility, individual performance and competitiveness versus the relevant external market and the Company’s operating performance.  

Annual Incentives

Rewards achievement of specific financial goals, including consolidated and business team results with adjustments based on individual performance.

Performance-based cash incentive opportunity; the amount actually earned will vary relative to the targeted level based on General Cable’s actual results.  Target awards are set at approximately 50th percentile of the market.  

Restricted Stock

Provides awards under a plan designed to enhance executive stock ownership as well as an incentive for retention and sustaining stockholder value.

Value of awards is directly dependent on General Cable share price.  




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Compensation Element

Purpose

Key Considerations

Stock Options

Provides awards under a plan that rewards participants if the value of General Cable’s stock increases.

Performance-based long term incentive opportunity; amounts realized depend on share price appreciation.  

Retirement Benefits and

Deferred Compensation

Provides benefits to executives at retirement from the Company.

Our core plan is a defined contribution retirement and savings plan, including a 401(k) employee contribution with matching Company contributions (“Retirement Plan”).  The Retirement Plan is identical to the plan provided to non-executive employees.  


Our deferred compensation plan (“DCP”) permits participants to defer salary, incentive bonuses or stock awards until retirement. We have a DCP because it allows us to have a more competitive benefit program.  We have a non-qualified supplemental or excess retirement plan (“BEP”), which provides benefits in excess of IRS limits under the Retirement Plan.  Benefits under the BEP are now included within the DCP.  The DCP also includes the value of participants’ accounts in our former Supplemental Executive Retirement Plan (“SERP”), which formerly provided for actuarially based defined benefits payable on retirement, but was frozen and amended to an account balance plan in 2007.

Welfare Plans and Other Benefits

Provide for basic health care, life and income security needs.

Life, medical, dental, disability and other employee welfare benefits, severance protection, fringe benefits and limited perquisites.  


The overall executive compensation program at General Cable is designed to be consistent with the compensation philosophy described above.  General Cable targets the following mix of compensation for its Named Executive Officers.  


 

 

Percent of Total Direct Compensation

Compensation Element

 

Chief Executive Officer

 

Other Executive Officers

Base Salary

 

21

 

33

Target Annual Incentives

 

21

 

16

Long-term Incentives

 

58

 

51


Total direct compensation is the sum of each executive’s base salary and the value of short and long-term incentive awards.  


Other non-cash compensation is provided to General Cable executives through employee benefits and limited perquisites.  The Company believes these compensation elements are consistent with relevant competitive market practice and further our goal of attracting and retaining executive management.  



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This excerpt taken from the BGC DEF 14A filed Mar 28, 2007.

Components of Our Total Compensation


In line with this philosophy, General Cable provides compensation programs with both fixed and variable components.  Fixed compensation, which consists of base salary and benefits, is designed to attract and retain executive talent.  Variable compensation depends in part upon both the Company’s and the individual’s performance thus aligning the executive’s interests with those of our shareholders.  The main elements of the Company’s 2006 executive officer compensation programs are outlined in the Table below.  


Compensation Element

Purpose

Key Considerations

Base Salary

Represents pay for an individual’s primary duties and responsibilities.

Base salaries are reviewed annually and are established based on scope of responsibility, individual performance and competitiveness versus the relevant external market and the Company’s operating performance.  





15






Compensation Element

Purpose

Key Considerations

Annual Incentives

Rewards achievement of specific financial goals, including consolidated and business team results with adjustments based on individual performance.

Performance-based cash incentive opportunity; the amount actually earned will vary relative to the targeted level based on General Cable’s actual results.  Target awards are set at approximately 50th percentile of the market.  

Restricted Stock

Provides awards under a plan designed to enhance executive stock ownership as well as an incentive for retention and sustaining shareholder value.

Value of awards is directly dependent on General Cable share price.  

Stock Options

Provides awards under a plan that rewards participants if the value of General Cable’s stock increases.

Performance-based long term incentive opportunity; amounts realized depend on share price appreciation.  

Retirement Benefits

Provides benefits to executives at retirement from the Company.

Our core plan is a defined contribution retirement and savings plan, including a 401(k) employee contribution with matching Company contributions (“Retirement Plan”).  The Retirement Plan is identical to the plan provided to non-executive employees.  


We have a non-qualified supplemental or excess retirement plan (“BEP”), which provides benefits in excess of IRS limits under the Retirement Plan.  


We also have a supplemental executive retirement plan with defined benefits payable on retirement under specific conditions.  The amount of plan benefits is offset by the value of the executive’s matching Company contributions and Company retirement contributions accounts in the Retirement Plan and the BEP, and one-half of applicable Social Security benefit.

Welfare Plans and Other Benefits

Provide for basic health care, life and income security needs.

Life, medical, dental, disability and other employee welfare benefits, severance protection, fringe benefits and limited perquisites.  


The overall executive compensation program at General Cable is designed to be consistent with the compensation philosophy described above.  General Cable targets the following mix of compensation for its Named Executive Officers.  


 

 

Percent of Total Direct Compensation

Compensation Element

 

Chief Executive Officer

 

Other Executive Officers

Base Salary

 

34.8

 

50.1

Target Annual Incentives

 

49.7

 

41.3

Long-term Incentives

 

15.4

 

8.5


Total direct compensation is the sum of each executive’s base salary and the value of short and long-term incentive awards.  



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Other non-cash compensation is provided to General Cable executives through employee benefits and limited perquisites.  The Company believes these non-cash compensation elements are consistent with relevant competitive market practice and further our goal of attracting and retaining executive management.  


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