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This excerpt taken from the SMG DEF 14A filed Dec 19, 2008. Compensation
Peer Groups
Prior to the 2008 fiscal year, the Company utilized a
compensation peer group that consisted of approximately 60
consumer-oriented companies as a reference for determining
competitive total compensation packages for the CEO, NEOs and
other key management employees. During the fiscal year ended
September 30, 2007 (the “2007 fiscal year”), at
the direction of the Compensation Committee and in conjunction
with the Company’s compensation consultants, a new, more
focused compensation peer group was
Table of Contents
developed with the goal of enabling the Company to more closely
benchmark the total compensation packages of the CEO and other
NEOs with the types of companies that the Company typically
competes with to attract and retain executive talent. This
customized compensation peer group (the “Primary
Compensation Peer Group”), which was approved by the
Compensation Committee and used by management and the
Compensation Committee for the 2008 fiscal year, consisted of
the following companies:
The Compensation Committee believes this Primary Compensation
Peer Group of highly regarded consumer-oriented companies
reflects the pay practices of the broader consumer products
industry, and is more reflective of the size and complexity of
the Company. In general, the Primary Compensation Peer Group
reflects companies that range between $1.3 billion and
$6.5 billion of annual revenues. The Company’s annual
revenues are slightly below the median revenues of the Primary
Compensation Peer Group.
The Primary Compensation Peer Group was used as the benchmark
for all NEOs for which a comparable job match could be found. A
secondary peer group (the “Secondary Compensation Peer
Group”), consisting of approximately 200 companies
between $1.0 billion and $6.0 billion, excluding
utilities and financial services companies, was used as the
benchmark for all NEO positions without a comparable match in
the Primary Compensation Peer Group. To account for the wide
range of companies included in the survey, the data was
statistically adjusted by an outside company to more closely
reflect the relative size and complexity of the Company. The
Primary Compensation Peer Group was used for Mr. Hagedorn,
Mr. Evans and Ms. Stump, while the Secondary
Compensation Peer Group was used for Mr. Sanders and
Mr. Lopez.
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