This excerpt taken from the NP DEF 14A filed Apr 9, 2007.
Neenahs compensation policies are designed to accomplish the following key objectives:
· Reward executives for long-term strategic management and enhancement of stockholder value;
· Support a performance oriented work environment that rewards achievement of identified internal goals and recognizes the Companys performance against the performance of selected peer companies; and
· Attract and retain leaders whose abilities are essential to Neenahs long-term success and competitiveness.
We believe that executive compensation, both long-term and short-term, should be directly linked with performance. Our measures of performance are keyed off of personal goals set for each individual, Neenahs operational goals and the creation of shareholder value.
Decisions made concerning the total compensation package for our executives take into consideration the individual executives level of responsibility within Neenah, the performance of Neenah relative to peer companies and the creation of shareholder value. We achieve a balanced and competitive compensation package through a mix of base salary, performance based cash bonuses, long-term equity based incentives and awards, deferred compensation plans, pension plans and welfare benefits.