This excerpt taken from the HBI DEF 14A filed Mar 10, 2008.
Discussion of Summary Compensation Table and Grant of Plan-Based Awards Table
As discussed above under Elements of Compensation and Analysis of Compensation Decisions, the base salaries for our named executive officers are determined based on their experience and the scope of their responsibilities both on an individual basis and in relation to the experience and scope of responsibilities of other executives. The Compensation Committee also applies the executive compensation benchmarking criteria. For the fiscal year ended December 29, 2007, bonuses were paid in accordance with the performance targets set under the AIP. See Elements of Compensation and Analysis of Compensation Decisions for an analysis of the salary and bonus paid to our named executive officers in 2007.
During the fiscal year ended December 29, 2007, consistent with the objectives of the Omnibus Incentive Plan of providing employees with a proprietary interest in our company and aligning employee interest with that of our stockholders, we made our 2007 annual equity awards. For executive officers, including the named executive officers, the form of these awards was split evenly between stock options and RSUs (except that Mr. Noll received 75% of his award in the form of stock options and 25% in the form of RSUs) that vest 33%, 34% and 33% on the first anniversary, second anniversary and third anniversary, respectively, of the date of grant. The number of stock options granted to each recipient was determined based on a Black-Scholes option-pricing model. The exercise price of the stock options is 100% of the fair market value of our common stock on the grant date. We also made recruitment awards to two of our executive officers who joined Hanesbrands during 2007, Ms. Johnson and Mr. Nictakis. The awards made to our named executive officers are reflected in the Summary Compensation Table and the Grants of Plan-Based Award Table above and are discussed above in Elements of Compensation and Analysis of Compensation Decisions.