Hanesbrands (HBI)

 

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 January 3, 2009, 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 for the fiscal year ended January 3, 2009.

 

During 2008, 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 long-term incentive equity awards in respect of our 2008 and 2009 fiscal years, as described above. For executive officers, including the named executive officers, the form of these awards was split evenly between stock options and restricted stock units (except that Mr. Noll received his entire 2008 award in the form of stock options) that vest 33%, 33% and 34% on the first anniversary, second anniversary and third anniversary, respectively, of the date of grant. As discussed above, 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. 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. For the 2009 awards, the Compensation Committee, upon the recommendation of the Cook firm and after reviewing benchmark information, determined to grant stock options that expire ten years after the grant to be more consistent with current market practice. Stock options previously awarded generally expire seven years after the date of grant date. 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.”