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This excerpt taken from the SMG DEF 14A filed Dec 19, 2008. Executive
Perquisites and Other Benefits (short-term compensation
element)
The Company maintains traditional health and welfare benefits
and a qualified 401(k) plan that are generally offered to all
employees (subject to basic plan eligibility requirements) and
are consistent with the types of benefits offered by other large
corporations. In addition to these traditional benefits, the
Company offers certain executive level perquisites to key
executives which are designed to be competitive with the
compensation practices of corporations in the relevant
compensation peer group, including comprehensive annual physical
examinations, a car allowance of $1,000 per month and annual
financial planning services, valued at approximately $4,000 per
year.
As discussed below, the CEO was entitled to two additional
perquisites in the 2008 fiscal year. First, consistent with the
Board of Directors’ travel protocols which encourage
Mr. Hagedorn to fly on a Company-owned aircraft for
security reasons, a Company-owned airplane was made available to
the CEO for personal use, subject to certain personal use
guidelines established by the Compensation Committee (as fully
described below in the section captioned “Our Compensation
Practices — Setting Compensation Level for
CEO”). Second, the CEO was entitled to Company
reimbursement for a portion of his commuting expenses pursuant
to these guidelines. For information concerning changes to the
CEO’s aircraft perquisites that occurred after the end of
the 2008 fiscal year, see the discussion in the section
captioned “Recent Developments — Amendment to
Compensation Package of James Hagedorn” below.
Since the imputed income value of certain non-cash perquisites,
such as the aircraft perquisites provided to the CEO as
discussed above and the Company-paid financial planning
services, are required to be added to
Form W-2,
the Compensation Committee believes that it is appropriate to
provide a tax
gross-up to
offset the tax obligation associated with these imputed income
amounts.
This excerpt taken from the SMG DEF 14A filed Dec 20, 2007. Executive
Perquisites and Other Benefits (short-term compensation
element)
The Company maintains traditional health and welfare benefits
and a qualified 401(k) plan that are generally offered to all
employees (subject to basic plan eligibility requirements), and
are consistent with the types of benefits offered by other large
corporations. In addition to the traditional benefits, the
Company offers certain executive level perquisites to key
executives which are designed to be competitive with the
compensation practices of our peer group. In addition to the
perquisites and benefits made available to other employees, the
Company pays for additional perquisites for all NEOs consisting
of comprehensive annual physical examinations, a car allowance
of $1,000 per month and annual financial planning services,
valued at approximately $4,000 per year on average.
As noted above, a company-owned airplane is available to the CEO
for personal use that is generally consistent with the Board of
Directors’ travel protocols which encourage
Mr. Hagedorn to fly on company-owned aircraft for security
reasons. While the Company maintains the aircraft primarily for
business travel, the Compensation and Organization Committee
believes that extending this perquisite to the CEO is in the
best interest of the Company from a productivity perspective. As
a result, Mr. Hagedorn’s personal use of company-owned
aircraft, which is paid for by the Company, is considered as a
perquisite. In addition, the Compensation and Organization
Committee has determined that reimbursement of a portion of
Mr. Hagedorn’s commuting expenses is also an
appropriate perquisite.
None of the other NEOs are covered by the security guidelines.
Accordingly, personal usage of company-owned aircraft by NEOs
other than the CEO is subject to pre-approval on a case by case
basis.
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