Comments on: Lumps of coal… http://www.footnoted.org/buried-treasure/lumps-of-coal/ Michelle Leder's guide to what's hiding in SEC filings Fri, 29 Aug 2008 05:51:35 +0000 http://wordpress.org/?v=2.6.1 By: Carlton Banks http://www.footnoted.org/buried-treasure/lumps-of-coal/#comment-1344 Carlton Banks Fri, 29 Dec 2006 17:34:15 +0000 http://footnoted.org/lumps-of-coal/#comment-1344 Check this out from the SGR proxy: [to summarize, mgmt gets 50% of any pre-tax income above budgeted amounts. With a board where an "outside" directors gets $20m from the company (see old post on this site), I'm sure those budgeted amounts are real hard to exceed! If I'm not mistaked, as an equity holder, don't I want to capture the upside??? I guess that doesn't hold with SGR!] "The Compensation Committee established a fiscal year 2006 incentive pool consisting of the total amount of funds authorized and available for payment of incentive awards and specified the relationship between the attainment of specified performance criteria and the payment of incentive awards. The fiscal year 2006 incentive pool was based on the following two factors: (1) an aggregate of 50% of the target annualized incentive awards of all participants; and (2) 50% of the income before taxes (and after ROA (return on assets)) for each business unit and corporate (unconsolidated) in excess of budgeted amounts. The fiscal year 2006 incentive pool was capped at an amount equal to two times the aggregate of the target annualized incentive awards of all participants. Incentive awards were prorated so that the sum of all individual awards did not exceed the available funds in the fiscal year 2006 incentive pool." Check this out from the SGR proxy: [to summarize, mgmt gets 50% of any pre-tax income above budgeted amounts. With a board where an "outside" directors gets $20m from the company (see old post on this site), I'm sure those budgeted amounts are real hard to exceed! If I'm not mistaked, as an equity holder, don't I want to capture the upside??? I guess that doesn't hold with SGR!]

“The Compensation Committee established a fiscal year 2006 incentive pool consisting of the total amount of funds authorized and available for payment of incentive awards and specified the relationship between the attainment of specified performance criteria and the payment of incentive awards. The fiscal year 2006 incentive pool was based on the following two factors: (1) an aggregate of 50% of the target annualized incentive awards of all participants; and (2) 50% of the income before taxes (and after ROA (return on assets)) for each business unit and corporate (unconsolidated) in excess of budgeted amounts. The fiscal year 2006 incentive pool was capped at an amount equal to two times the aggregate of the target annualized incentive awards of all participants. Incentive awards were prorated so that the sum of all individual awards did not exceed the available funds in the fiscal year 2006 incentive pool.”

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