This excerpt taken from the GWW DEF 14A filed Mar 16, 2007.
Compensation Comparator Group
The compensation comparator group is derived from a database maintained by Hewitt Associates LLC (Hewitt) which contains detailed company-specific compensation data. Every other year, the Committee commissions a comparator group study from Hewitt which it then reviews with Hewitt and the Committee's independent compensation consultant (Deloitte). The most recent comparator group study was performed in 2006 (2006 Compensation Study).
In 2006, the comparator group from the previous study was enlarged by five companies and now consists of 22 businesses which are relatively similar in complexity and size (based on 2005 sales and market capitalization) to the Company, and which are representative of the types of major companies with which the Company historically competes for executive talent. This "competitive market" for executive talent includes companies both within and outside the same industry or sector as the Company. In addition, most of the Company's publicly traded direct competitors tend to be too small in sales or scope of operations for direct compensation comparisons with the Company. Including a broader range of companies provides a more representative depiction of the competitive market for talent. Therefore, companies used for compensation comparison purposes differ from those in the industry indicies used in the Company Performance graph in Part II, Item 5 of the Company's most recent Annual Report on Form 10-K. Management has a minimal role in selecting the comparator group. The Committee has relied on Hewitt and Deloitte for input in this area. The primary role of management in determining the comparator group was to provide general comments on the relevance of each industry represented by the comparator companies.
Below is the 2006 Compensation Study compensation comparator group used by the Company, including 2005 sales and market capitalization:
The range of 2005 sales and market capitalization for the compensation comparator group is as follows: