This excerpt taken from the DTV DEF 14A filed Apr 21, 2008.
What specific items of corporate performance are taken into account in setting compensation policies and making compensation decisions?
The Committee uses a variety of internal and external measures to gauge the level of performance as it affects compensation decisions. The Committee evaluates the performance measures established in the short- and long-term incentive plans in the context of other performance measures over the same time periods. To balance the focus on achievement of internal measures, the Committee also gauges the Company performance as compared to the peer group. As appropriate, the Committee measures Company performance over one year (typically used for annual bonuses) or longer periods of time (typically used for long-term incentive programs).
The Committee designed the bonus plan and long-term stock plan to use operational and financial performance measures over short-term (annual) and long-term performance periods, respectively. Operational measures have included net subscriber growth, churn and customer satisfaction. Financial measures have included subscriber acquisition costs, or SAC, per gross additional subscriber, pre-SAC margin improvement, growth of average revenue per unit (i.e., per subscriber), or ARPU, cash flow, free cash flow, free cash flow growth, growth in cash flow before interest and taxes, revenue growth,
OPBDA growth, total return to stockholders, return on investment, and earnings per share growth. The specific performance measures used in each of the current annual and long-term incentive plans are described in the 2007 Company Performance and Incentive Programs on page 31.