HAS » Topics » Base Salary

This excerpt taken from the HAS DEF 14A filed Apr 6, 2009.
Base Salary
 
Normally the Company would have five Named Executive Officers appearing in its compensation tables in the proxy statement. However, because both Mr. Verrecchia and Mr. Goldner served as Chief Executive Officer of the Company for a portion of fiscal 2008, the Company is reporting compensation for fiscal 2008 for a total of six officers. The salaries for all six of the Company’s Named Executive Officers in fiscal 2008 are included in the Summary Compensation Table that follows this report. The Company’s philosophy is to only increase executive base salaries in the event of changes in responsibility, particular achievements or lack of competitiveness with market compensation offered to executives with similar responsibilities, expertise and experience in other general industry and consumer products companies the Company considers to be comparable and/or competitive with the Company. Consistent with this philosophy, Mr. Verrecchia, Mr. Billing and Mr. Frascotti did not receive increases in base salary during 2008.
 
Mr. Goldner, Mr. Hargreaves and Mr. Nagler did receive increases in base salary in 2008. In connection with his promotion to President and Chief Executive Officer, Mr. Goldner’s annual base salary was increased from $800,000 to $1,000,000 effective in May of 2008. In connection with Mr. Hargreaves’ promotion to Chief Operating Officer and Chief Financial Officer, Mr. Hargreaves annual base salary was increased from $600,000 to $700,000 in May of 2008. As a result of its review of compensation for comparable positions at companies in the benchmark surveys the Company increased Mr. Nagler’s base salary to $495,000 in March of 2008. Although Mr. Billing was not a named executive officer of the Company in 2007, Mr. Billing’s base salary was increased from $375,000 to $412,500 in December 2007 in connection with his promotion to Global Chief Development Officer.
 
According to the last set of data which the Company reviewed at the end of fiscal 2008, the base salaries for the Named Executive Officers (excluding Mr. Verrecchia, who was in his last year of employment with the Company and who ceased to be an employee of the Company on December 31, 2008), in fiscal 2008 ranged between the 49th and the 66th percentiles of base salaries for comparable positions at companies contained in the benchmark surveys reviewed by the Company.


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Base salaries for new executive officers are initially set at a level the Company determines represents a competitive fixed reward to the executive. By “competitive”, the Company means the reward is sufficient to (i) hire the executive in question, rather than losing that person to a competitive employment opportunity, (ii) retain the executive, and (iii) fairly compensate the executive for their responsibilities, skills and work. This is done by evaluating the responsibilities of the position being filled, the experience of the individual being hired and the competitive marketplace for comparable executive talent.
 
As part of its effort to control expenses and maintain profit levels in the current difficult economic times, the Company has taken a number of steps for 2009. These include a worldwide salary freeze, excepting only situations where people are promoted, take on significant additional responsibilities, or increases in salary are required for legal or other reasons. Consistent with the Company’s policy to freeze the salaries for its employees in 2009, the base salaries for Mr. Goldner, Mr. Hargreaves, Mr. Nagler, Mr. Billing and Mr. Frascotti have not been increased for fiscal 2009. Mr. Verrecchia retired as an officer and employee of the Company effective December 31, 2008.
 
This excerpt taken from the HAS DEF 14A filed Apr 8, 2008.
Base Salary
 
The salaries for all five of the Company’s Named Executive Officers in fiscal 2007 are included in the Summary Compensation Table that follows this report. Consistent with the Company’s general philosophy of only increasing executive base salaries in the event of changes in responsibility, particular achievements or lack of competitiveness with market compensation offered to executives with similar responsibilities, expertise and experience in other general industry and consumer products companies the Company considers to be comparable and/or competitive with the Company, Mr. Goldner, Mr. Nagler and Mr. Bifulco did not receive increases in base salary during 2007.
 
Mr. Verrecchia and Mr. Hargreaves did receive increases in base salary in 2007. In light of its review of compensation for Chief Executive Officers at companies deemed comparable to, or competitive with, the Company, the Committee recommended, and the Board approved, an increase in the base salary for Mr. Verrecchia from $1 million to $1.2 million in fiscal 2007. Second, Mr. Hargreaves was promoted from Senior Vice President and Chief Financial Officer to Executive Vice President, Finance and Global Operations and Chief Financial Officer at the beginning of 2007. In connection with this promotion and the increase in Mr. Hargreaves’ responsibilities, the base salary for Mr. Hargreaves was increased from $500,000 to $600,000.
 
According to the last set of data which the Company reviewed at the end of fiscal 2007, the base salaries for the five Named Executive Officers in fiscal 2007 ranged between the 62nd and the 78th percentiles of base salaries at the benchmarked companies.
 
Base salaries for new executive officers are initially set at a level the Company determines represents a competitive fixed reward to the executive. By “competitive”, the Company means the reward is sufficient to (i) hire the executive in question, rather than losing that person to a competitive employment opportunity, (ii) retain the executive during their employment with the Company, and (iii) fairly compensate the executive for their responsibilities, skills and work. This is done by evaluating the responsibilities of the position being filled, the experience of the individual being hired and the competitive marketplace for comparable executive talent.
 
This excerpt taken from the HAS DEF 14A filed Apr 16, 2007.
Base Salary
 
Base salaries for new executive officers are initially set at a level the Company determines represents a competitive fixed reward to the executive. This is done by evaluating the responsibilities of the position being filled, the experience of the individual being hired and the competitive marketplace for comparable executive talent. Subsequent yearly adjustments in base salaries are made in the event of changes in duties and responsibilities for the executive, superior performance or lack of competitiveness of the base salary with market compensation offered to executives with similar responsibilities, expertise and experience in other general industry and consumer products companies the Company considers to be comparable with the Company, and/or competitive with the Company in recruiting executives. The base salary provides a minimum compensation which executives will earn if they continue to perform well and remain employed with the Company.
 
In addition to evaluating base salaries with respect to the expertise, responsibility and performance of the individual executives, the Committee generally sets executive base salaries to be between the 50th and 75th percentiles for comparable general industry and consumer products companies as surveyed in Hewitt Executive Total Compensation Measurement, prepared by Hewitt Associates, LLP, and Towers Perrin’s Executive Compensation Databank. The Committee believes that this positions the Company’s base salaries at a level that, when viewed in combination with the other elements of its executive compensation package, allows the Company to hire, retain and motivate talented executives. This approach also enables the Company to keep the cost of the Company’s executive compensation at a reasonable level as compared to other similar and/or competitive companies, while providing a


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compensation package that is highly performance-oriented by placing a significant portion of total executive compensation in variable elements.
 
The salaries for all five of the Company’s named executive officers in fiscal 2006 are included in the Summary Compensation Table that follows this report. Consistent with the Company’s general philosophy of only increasing executive base salaries in the event of changes in responsibility, particular achievements or lack of competitiveness with benchmarked companies, Mr. Verrecchia, Mr. Nagler and Mr. Gardner did not receive increases in base salary during 2006. On January 20, 2006, Mr. Goldner was promoted to Chief Operating Officer of the Company, assuming significantly greater responsibilities than he had previously held as President of the U.S. Toys Segment. In connection with this promotion, Mr. Goldner’s annualized base salary was increased from $700,000 to $800,000. In April of 2006, Mr. Hargreaves’ base salary was increased from $475,000 to $500,000. This increase was attributable to Mr. Hargreaves’ increased responsibility, associated with the Company’s compliance with increased regulatory requirements, and from the Company’s review of relevant benchmarking information which indicated that Mr. Hargreaves’ base salary was at the lower end of the range between the 50th and 75th percentiles.
 
Subsequent to the end of 2006 the Company took two actions with respect to the base salaries of named executive officers. Both of these actions were taken in February 2007, but were made effective as of January 1, 2007. First, in light of its review of compensation for Chief Executive Officers at companies deemed comparable to, or competitive with, the Company, the Committee recommended, and the Board approved, an increase in the base salary for Mr. Verrecchia from $1 million to $1.2 million. Second, Mr. Hargreaves was promoted from Senior Vice President and Chief Financial Officer to Executive Vice President, Finance and Global Operations and Chief Financial Officer. In connection with this promotion and the increase in Mr. Hargreaves’ responsibilities, the base salary for Mr. Hargreaves was increased from $500,000 to $600,000.
 
This excerpt taken from the HAS DEF 14A filed Apr 17, 2006.
Base Salary
 
Base salaries for new executive officers are initially determined by evaluating the responsibilities of the position being filled, the experience of the individual being hired and the competitive marketplace for comparable executive talent. Subsequent yearly adjustments in base salaries are made only in the event of changes in duties and responsibilities for the executive, or lack of competitiveness of the base salary with market compensation offered to executives with similar responsibilities, expertise and experience in other consumer products, leisure, lifestyle and other companies the Committee considers to be comparable with the Company, and/or competitive with the Company in recruiting executives.
 
The Committee generally sets executive base salaries and target bonus awards to be competitive with comparable consumer products, leisure, lifestyle and other competitive companies as surveyed in Hewitt Executive Total Compensation Measurement, prepared by Hewitt Associates, LLP, and Towers Perrin’s Executive Compensation Databank. The Committee believes that this positions the Company’s salaries and target bonus awards at a level that allows the Company to hire, retain and motivate talented executives while also keeping the cost of the Company’s executive compensation at a reasonable level as compared to other similar and/or competitive companies.
 
The salaries for all five of the Company’s most highly compensated executive officers in fiscal 2005 are included in the Summary Compensation Table that follows this report. There were no salary increases for any of the five named executive officers for fiscal 2005. On January 20, 2006, Mr. Goldner was promoted to Chief Operating Officer of the Company. In connection with this promotion Mr. Goldner’s annualized base salary was increased from $700,000 to $800,000. As with the Company’s five named executive officers, there were no increases in base salaries for any of the Company’s other executive officers for fiscal 2005.
 
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