Hanesbrands (HBI)

 

In January 2008, the Compensation Committee reviewed total compensation opportunities for Hanesbrands’ executive officers, including the named executive officers, applying the executive compensation benchmarking criteria. As a result of such review, the Compensation Committee determined not to increase the total compensation opportunity of Mr. Noll or change the allocation among Mr. Noll’s base salary, bonus and long-term equity compensation. The entire value of Mr. Noll’s equity award for 2008 was in the form of stock options, unlike the award he received in 2007, 75% of the value of which was in the form of stock options and 25% of the value of which was in the form of restricted stock units. The Compensation Committee determined that a change in the mix of stock options and restricted stock units issued to Mr. Noll was appropriate as a means of further linking pay to performance.

 

Also as a result of such review, the Compensation Committee determined to increase the total compensation opportunities of Mr. Wyatt, Mr. Evans and Mr. Oliver. In addition to the executive compensation benchmarking criteria, the Compensation Committee considered other factors, such as, for Mr. Evans, the critical nature of his position to Hanesbrands and his unique skill set that combines marketing and supply chain expertise and, for Mr. Oliver, the global nature of his position, in making its determination.

 

The Compensation Committee next considered the allocation of the compensation of each of Mr. Wyatt, Mr. Evans and Mr. Oliver among the various elements of compensation, again applying the executive compensation benchmarking criteria. After also considering that Mr. Wyatt’s base salary had not changed since he joined our company in September 2005, the Compensation Committee increased Mr. Wyatt’s base salary from $550,000 to $585,000. After also considering that Mr. Evans’ base salary had not changed since July 2006 and the critical nature of his position to Hanesbrands and his unique skill set that combines marketing and supply chain expertise, the Compensation Committee increased Mr. Evans’ base salary from $425,000 to $600,000. After also considering that Mr. Oliver’s cash compensation had not changed since 2005, the Compensation Committee increased Mr. Oliver’s base salary from $330,000 to $375,000, and also increased the target bonus opportunity for Mr. Oliver from 85% to 100% of his base salary and the maximum target bonus opportunity from 127.5% to 150% of his base salary. The Compensation Committee also increased his equity compensation from 150% to 200% of his base salary. As a result, Mr. Oliver’s bonus opportunity and equity compensation, expressed as a percentage of base salary, are the same as that of the other named executive officers, other than the Chief Executive Officer.