DIS » Topics » Compensation Objectives and Program Design

This excerpt taken from the DIS DEF 14A filed Jan 22, 2010.

Compensation Objectives and Program Design

The Company’s executive compensation program seeks to promote the creation of long-term shareholder value by:

 

 

tying a substantial portion of executives’ total compensation to financial performance measures that align with long-term shareholder value and leadership actions that are expected to position the Company for long-term success; and

 

 

attracting and retaining high-caliber executives in a competitive market for talent.

We use five different types of compensation in pursuing these objectives:

 

 

a base salary;

 

 

a variable, annual, performance-based bonus;

 

 

periodic grants of long-term, equity-based compensation such as stock options, restricted stock units and performance-based restricted stock units;

 

 

retirement plans and agreements and arrangements regarding compensation upon termination of employment; and

 

 

benefits and perquisites.

This section discusses how we have designed our compensation program to address these objectives.

 

 

“Roles and Responsibilities” addresses the process used to make compensation decisions for executive officers.

 

 

“Compensation Mix” addresses how we balance fixed and performance-based compensation to achieve our objectives.

 

 

“Performance-Based Compensation” addresses the specific design elements of the Company’s performance-based bonus and equity compensation programs that are designed to align compensation with the creation of long-term shareholder value.

 

 

“Fixed Compensation” addresses base salary, benefits and perquisites and retirement plans.

 

 

“Competitive Considerations” addresses how we evaluate the competitive market for talent and use that evaluation in designing compensation packages.

 

 

“Other considerations” addresses the use of employment agreements and tax deductibility of executive compensation.

Specific compensation decisions relating to fiscal 2009 are discussed in the section titled “2009 Decisions.”

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