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This excerpt taken from the PBG DEF 14A filed Apr 7, 2009. Why do we
choose to pay a mix of cash and equity-based
compensation?
We view the combination of cash and equity-based compensation as
an important tool to assist us in achieving the objectives of
our program. The Committee periodically reviews the mix of cash
and equity-based compensation provided under the program to
ensure that the mix is appropriate in light of market trends and
the Company’s primary business objectives.
We pay base salary in cash so that our executives have a steady,
liquid source of compensation.
We pay our annual incentive in cash because our annual incentive
is tied to the achievement of our short-term (i.e., annual)
business objectives, and we believe a cash bonus is the
strongest way to motivate and reward the achievement of these
objectives.
Finally, we pay our long-term incentive in the form of PBG
equity because our long-term incentive is tied to our long-term
business objectives, and we believe the market value of PBG
equity is a strong indicator of whether PBG is achieving its
long-term business objectives.
For 2008, our Named Executive Officers’ percentage of cash
(based on base salary and target payout of the short-term cash
incentive) versus equity-based pay (based on the grant date fair
value of the annual
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2008 equity awards and the annualized grant date fair value
(one-fourth) of the one-time Strategic Leadership Award), was
approximately as follows:
This excerpt taken from the PBG DEF 14A filed Apr 10, 2008. Why do we
choose to pay a mix of cash and equity-based
compensation?
We view the combination of cash and equity-based compensation as
an important tool to assist us in achieving the objectives of
our program. The Committee periodically reviews the mix of cash
and equity-based compensation provided under the program to
ensure that the mix is appropriate in light of market trends and
the Company’s primary business objectives.
We pay base salary in cash so that our executives have a steady,
liquid source of compensation. To remain focused on their
day-to-day job responsibilities, executives (and all employees)
need to know that they will receive a fixed, reliable level of
compensation, which will be available to pay day-to-day living
expenses.
We pay our annual incentive in cash because our annual incentive
is tied to the achievement of our short-term (i.e., annual)
business objectives, and we believe a cash bonus is the
strongest way to motivate the achievement of these objectives. A
cash bonus is immediate in its recognition of a job well done as
it has immediate value and liquidity and, once earned and paid,
is not dependent upon future performance of the Company.
Finally, we pay our long-term incentive in the form of PBG
equity because our long-term incentive is tied to our long-term
business objectives, and we believe the market value of PBG
equity is a strong indicator of whether PBG is achieving its
long-term business objectives.
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For 2007, our Named Executive Officers’ percentage of cash
(based on annual rate of base salary and target payout of the
short-term cash incentive) versus equity-based pay (based on the
grant date fair value of the 2007 equity awards), was as follows:
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