This excerpt taken from the UMPQ DEF 14A filed Mar 14, 2007.
The Company has adopted a written statement of its executive compensation philosophy. That statement is reviewed annually by the Compensation Committee. In December 2006, the Committee approved the following statement:
Decisions regarding executives total compensation program design, as well as individual pay decisions, will be made in the context of this Executive Compensation Philosophy and our ability to pay, as defined by our financial success. Umpquas executive compensation is designed to recognize superior operating performance thereby maximizing shareholder value, and to attract, motivate and retain the high performing executive team critical to our Companys success. Our executive compensation philosophy is simple: we pay competitive base salaries and we strongly reward performance.