This excerpt taken from the HNZ DEF 14A filed Jul 7, 2008.
Our Performance Management & Development (PMD) process is used by the MDCC to establish individual performance goals for each of the NEOs on an annual basis and then to measure actual results against those goals. At the beginning of the fiscal year, the CEO recommends individual performance goals for himself to the MDCC, which then reviews, refines, and ultimately approves them. At the end of the fiscal year, the CEO reviews his performance and the performance of the other NEOs against their respective individual personal goals with the MDCC. Without any NEOs present, the MDCC assigns a performance rating to each NEO and considers these performance ratings in determining:
The specifics regarding how performance ratings influenced award grants and payouts in Fiscal Year 2008 are described in detail under each programs description.