This excerpt taken from the RAD DEF 14A filed May 25, 2007.
Consideration of the mix of overall compensation. Consistent with our compensation objectives, as executives progress to higher levels in the organization, a greater proportion of overall compensation is directly linked to Company performance and shareholder returns. Thus, for example, Ms. Sammons overall compensation is more heavily weighted toward incentive compensation and equity compensation than that of the other executive officers.
In establishing Ms. Sammons base salary for fiscal year 2007, the Compensation Committee applied the principles described above under The Committees Processes. In an executive session including all independent directors, the Compensation Committee assessed Ms. Sammons fiscal year 2006 performance. They considered the Companys and Ms. Sammons accomplishment of objectives that had been established at the beginning of the year and its own subjective assessment of her performance. They noted that under Ms. Sammons leadership, in fiscal year 2006 the Company continued to develop and execute against its strategic plan and improve its competitive positioning. Although the Company did not achieve its overall financial goals for fiscal year 2006, the Companys capital structure was improved, its new store development program continued to increase our presence in key strategic markets and customer satisfaction ratings in both the front end and pharmacy improved. In recognition of her continued strong leadership in fiscal year 2006, the Compensation Committee set Ms. Sammons base salary for fiscal year 2007 at $1,000,000, the same level that it was for fiscal years 2004 through 2006.
The Compensation Committee reviewed similar considerations for each of the other named executives. With regard to Mr. Panzers performance, the Compensation Committee considered his new role as Chief Marketing Officer and increased his annual salary by two percent in fiscal year 2007. The Compensation Committee had increased Mr. Twomeys annual salary by three percent in fiscal year 2007 based upon his performance as Chief Financial Officer. The Compensation Committee also increased Mr. deBruins annual salary by three percent in fiscal year 2007 based upon his performance as Executive Vice President, Pharmacy. No adjustment was made to Mr. Mastrians annual salary in fiscal year 2007.