This excerpt taken from the PBG DEF 14A filed Mar 31, 2006.
Annual Cash Incentive. Like other Covered Executives, Mr. Cahill receives no annual incentive if the minimum EPS goal established by the Committee is not met. If the Committee determines that the minimum EPS threshold is met, Mr. Cahill is eligible to receive the maximum award related to the actual EPS result. The Committee then determines the actual amount of Mr. Cahills annual incentive award, which may not exceed the maximum.
Following its determination that the minimum EPS threshold was satisfied in 2005, the Committee reviewed Mr. Cahills performance during 2005 in light of several quantitative and qualitative factors. The quantitative factors considered by the Committee included performance against EPS, cash flow and worldwide volume targets. Specifically, the Committee noted an above-target increase in EPS, as well as strong cash flow results. The Committee also noted strong volume growth in the U.S. business that surpassed 2005 targets, exceptional volume growth in Europe and solid volume momentum in Mexico during the second half of 2005. These results led the Committee to conclude that the Company had performed well against volume targets. The qualitative factors considered by the Committee included the Companys improvement of organizational capabilities in targeted business areas, development of plans to further its growth agenda, and continued progress towards a strengthened CEO succession plan. Following its review of all of these factors, the Committee awarded Mr. Cahill a bonus of $1,828,125. The Committee determined that this bonus reflected the performance of the Company in 2005, which significantly exceeded the targets established by the Committee.