This excerpt taken from the SPSX DEF 14A filed Mar 23, 2007.
Long-Term Compensation. As noted above, the compensation committee believes that a substantial portion of each executives compensation should be based on longer-term performance and should be in the form of equity-based awards because such awards align the interests of our executives and shareowners. Equity-based awards are made under the 2005 Incentive Plan. The mix between various types of equity awards can vary from year to year, based on the compensation committees judgment as to how best to drive performance to increase shareowner value.
The 2006 market review revealed that prior awards were generally at market, although there was variation by position, with the CEO and General Counsel positions being below market. After reviewing the market analysis, the compensation committee established target long-term awards for 2006 as follows:
· Mr. Carter: 200% of base salary
· Messrs. Aldridge, Deedy, and Jack: 140% of base salary
· Ms. Blackford: 120% of base salary
Target award values are denominated in shares based on the stock price as of the date of grant. As discussed earlier, the CEOs target long-term incentive compensation opportunity comprises 50% of his total direct compensation target. For the EVPs, target long-term incentive compensation opportunities comprise approximately 45% of their total direct compensation opportunities.