This excerpt taken from the KIDS 10-K filed Apr 2, 2007.
Elements of Executive Compensation
The Compensation Committee of the Companys Board of Directors is responsible for overseeing our compensation programs. As part of that responsibility, the Compensation Committee determines all compensation for the Chief Executive Officer and the Companys other executive officers as defined by SEC rules.
The Companys executive compensation program consists of a competitive base salary, equity participation either in the form of options to purchase shares of the Companys common stock or the granting of restricted shares of the Companys common stock, which, in each case, vest over a two to four year period. In addition, the Company has paid discretionary bonuses which are based on the Compensation Committees assessment of the executives contribution to the Company.
The Company attempts to set base salaries that are competitive with similar sized organizations, are commensurate with each executives organizational responsibilities and his or her level of professional development, taking into account the expected role the executive is likely to play in the helping the Company achieve its goals and objectives. In addition, after the Compensation Committee evaluated the roles and responsibilities of the executive officers, each executive officer was allowed to invest in equity of the Company or was awarded equity in the form of restricted stock or stock options in connection with his or her employment. Equity-based compensation is designed to provide long-term incentives for the aligning of the Companys goals and objectives with the executives performance and to reward performance that is accretive to shareholder value. The Compensation Committee believes these arrangements are reasonable and competitive compared to other companies the Company competes with for the attraction and retention of talent.
The executive officers do not receive any other compensation or benefits other than standard benefits available to all employees, which primarily consist of health plans, the opportunity to participate in the Companys 401(k) plan, basic life insurance and accidental death insurance coverage.