This excerpt taken from the MOLX DEF 14A filed Sep 10, 2007.
Fiscal Year 2007 Compensation Decisions
As previously noted, the Compensation Committee selected PBT as the performance measure for the fiscal year 2007 merit bonus. In addition, the Compensation Committee approved individual performance goals at the beginning of fiscal year 2007 for the CEO, and the Committee and the CEO approved performance goals for the other executive officers. The CEOs individual performance goal areas included: finalization and implementation of the global reorganization to improve revenue growth and profitability; successful integration of the Woodhead acquisition; continuous strengthening of Molexs global organization; increased stakeholder contact; and implementation of a quality manufacturing initiative.
In August 2007, the Compensation Committee and the Co-Chairman of the Board conducted an evaluation of the performance of the CEO, and the Committee and the CEO conducted an evaluation of the performance of the other executive officers during fiscal year 2007 against the goals and objectives the Compensation Committee and the CEO had approved for them. Based upon these evaluations, decisions were made regarding salary increases, merit bonuses and long-term incentives. The Named Executive Officers received the following salary increases effective September 1, 2007: Mr. Slark 4%, Mr. Fleischhacker 4%, and Mr. Johnson 4%. Mr. Schubel did not receive a salary increase because he will be retiring from Molex effective September 30, 2007. Also, as previously announced, Mr. Mahoney resigned from his position as an executive officer of Molex at the end of fiscal year 2007 so he was not eligible for a salary increase.
Despite good overall performance in fiscal year 2007, the threshold PBT was not achieved and the executive officers, including the Named Executive Officers, did not receive a merit bonus for fiscal year 2007 performance.
In keeping with our philosophy of aligning management and stockholder interests and considering the future contributions expected of the executive officers, the Compensation Committee granted on August 15, 2006, long-term incentive awards to each executive officer. See the Grants of Plan-Based Awards Table for the equity granted to the Named Executive Officers.
The Compensation Committee reviewed with management all principal components of executive compensation and concluded that compensation levels are reasonable and in the best interests of Molex and its stockholders.