JWN » Topics » Performance Measures and Weighting

This excerpt taken from the JWN DEF 14A filed Apr 9, 2009.

Performance Measures and Weighting

 

The performance measures and weighting are intended to balance the focus of each role across the most important Company objectives. For fiscal year 2008, these measures and weightings were as follows:

 

 

All of the Named Executive Officers had an EBIT measure. If achieved, this measure would not pay out unless a Return on Invested Capital (ROIC) threshold had also been met.

 

  For Blake, Pete and Erik Nordstrom, the EBIT measure and ROIC threshold made up 100% of their performance-based bonus criteria.

 

  For Mike Koppel and Dan Little, the EBIT measure and ROIC threshold made up 75% of their performance-based bonus criteria.

 

 

Mike Koppel and Dan Little also each had two qualitative performance measures as outlined below, which corresponded with their roles and responsibilities. The combination of these qualitative measures made up 25% of their performance-based bonus criteria. Based on the priorities for fiscal year 2008, the President and the Committee believed this combination of measures represented the intended focus for these executives.

 

The 2008 performance measures and weighting for the Named Executive Officers are shown below.

 

       Fiscal Year 2008 Performance Measures and Weighting
Executive     

EBIT w/
ROIC
Threshold

(%)

    

Cost/Asset
Productivity

(%)

    

Business
Strategy and
Communication

(%)

    

Multi-
Channel
Strategy

(%)

Blake W. Nordstrom

     100               

Peter E. Nordstrom

     100               

Erik B. Nordstrom

     100               

Michael G. Koppel

     75      12.5      12.5     

Daniel F. Little

     75      12.5           12.5

 

The 2008 qualitative measures for Mike Koppel and Dan Little are summarized below.

 

•   Cost/Asset Productivity:

   Achieve defined cost savings and carry out opportunities for reallocation of resources.

•   Business Strategy and Communication:

   Enhance transparency into Company strategy and business performance for external stakeholders.

•   Multi-Channel Strategy:

   Ensure areas of the business are aligned and key technology initiatives are implemented to support our multi-channel strategy.

 

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