This excerpt taken from the VVI DEF 14A filed Apr 4, 2007.
The salary program helps achieve the objectives outlined above by attracting and retaining strong talent. Base salaries represent the fixed portion of the executive compensation package, and account for approximately 17% to 35% of the targeted total compensation package. Salary levels are determined using a combination of factors including competitive benchmark levels, the executives experience and tenure, Viads annual merit budget and the executives individual performance. Merit increase guidelines are determined using published survey sources, and have ranged from 0% to 5%, averaging 3.5% over the past several years. An executive who has exhibited excellent performance would typically receive a merit increase of between 4% and 5%, while an executive who achieves expectations would receive a merit increase of between 3% and 3.5%. If an executive were not meeting expectations or if the executives salary substantially exceeds competitive market levels, then no increase would be awarded.
Base salaries for Viads named executive officers are targeted at the 50th percentile of the survey reference points, except for Mr. Bohannon, who due to his experience, tenure, and consistent performance is targeted at the 75th percentile. In the event an executives base salary has reached a level that is substantially in excess of the relevant reference point, the salary is typically frozen until the salary no longer exceeds the benchmark range. Once a competitive market value is determined for a position, a range is developed by the Human Resources Department below and above that value. An executive whose base salary is at the reference point of the range is deemed fully qualified in his or her role; an executive whose base salary is above the midpoint has typically been in their role for several years and has been a strong
performer. This range allows Viad to respond to changing business conditions and manage salaries more evenly over an executives career. For the named executive officers, actual base salaries approved by the Committee are no more than 6% above the competitive 50th percentile of the survey reference point, except for Mr. Bohannon, whose base salary was established with reference to the 75th percentile of the survey reference point.
This excerpt taken from the VVI DEF 14A filed Apr 5, 2006.
Base Salary. The Committee evaluates executive base salaries every year. Base salaries represent the fixed portion of the executive compensation package. Salary levels are determined using a combination of factors including competitive levels, the executives experience and tenure, Viads annual merit budget and the executives individual performance.