This excerpt taken from the DTV DEF 14A filed Apr 27, 2007.
The compensation programs for the named executive officers are designed to support the achievement of annual and longer-term business goals that are expected to enhance the value of the Company for stockholders. The total of an executive officer's base salary, target annual bonus and target long-term stock awards is intended to be competitive with the pay levels of similar executives among companies in our peer group of companies.
As part of its processes and procedures for determining executive compensation, the Compensation Committee:
In reviewing the Company's 2006 performance, the Committee determined that the performance goals had been exceeded for both the 2006 annual bonus program and the three year stock-based performance plan ending in December 2006. The Committee's compensation consultant, Watson Wyatt
Worldwide, or the Consultant, determined that the Company had performed above the median as compared to the peer companies with respect to financial measures such as total return to stockholders, return on investment, free cash flow growth, earnings per share growth, revenue growth and EBITDA growth. After reviewing these achievements, as well as other performance factors, the Committee approved bonuses that exceeded the target bonus levels for 2006 and approved payment of 100% of the shares in the performance-based stock program for the three-year period ending December 31, 2006.