This excerpt taken from the OCR DEF 14A filed Apr 27, 2007.
2007 Performance Objectives.
On March 22, 2007, the Compensation Committee established fiscal year 2007 performance objectives for the executives, comprised of both financial and operational factors. Similar to 2006, the Compensation Committee again emphasized the importance of the operational factors. The operational factors established by the Compensation Committee were primarily related to the executives responsibilities to implement initiatives to realign the Companys operating infrastructure to capitalize on the Companys scale advantages to position the Company for long-term growth. Other operational factors that the Compensation Committee established as part of the performance objectives included continued growth of the Companys core pharmacy business, product or service expansions, growth in the customer base, continued efforts to manage the transition of the Company to the new regulatory environment created by Medicare Part D, furthering executive development, continued execution of the Companys acquisition program, and an overall strategic positioning of the Companys assets. The financial factors included in the 2007 performance objectives included revenues and earnings performance, profitability, cash flows, and return on investment.
The Compensation Committee established that the operational and financial factors would be assessed in the context of how the Company responded to the changing market place, as well as how the Company performed relative to its peer group. The Compensation Committee also established that specific relative weights would not be assigned to each financial and operational performance factor, since the relative importance of each factor varies depending upon the executives responsibilities. As a result, the Compensation Committee established that each executive would be evaluated on an individual basis in light of the financial and operational performance factors and the applicability of such factors to each executive.