|
THERE NOT ONLY SHOULD NOT HAVE BEEN BONUSES; THEY SHOULD HAVE HAD TO RE-PAY PART OF THEIR SALARIES; COME ON! SHOW ME $50M OF PROFIT TO THE BOTTOM LINE; THEN WE CAN TALK BONUSES:
During fiscal 2009, the Company recorded a goodwill impairment charge of approximately $68.0 million, which resulted in a 2009 pre-tax accounting loss for the Company of $49.9 million. As a result, no bonuses were earned for 2009 relating to the Company financial performance objective component of the 2009 bonus plan. The Compensation Committee considered, however, that the goodwill impairment charge related to goodwill created in connection with a transaction during 2004 and was not the result of actions taken by the executive officers during fiscal 2009. The Compensation Committee also considered that, excluding the goodwill impairment charge, the Company would have recorded pre-tax accounting income (as adjusted to exclude expenses related to the class action litigation against the Company in Alabama and Georgia, charges related to other than temporary impairments of investments, and restructuring charges) of approximately $20 million. Based upon these factors, the Compensation Committee awarded discretionary cash bonuses to the executive officers as follows: Mr. Pierce, $65,000; Mr. Cohn, $46,663; Mr. Walker, $41,597; and Mr. Bornemann, $21,187. These cash bonuses were equal to 48% to 82% of the bonuses to which the executive officers would have been entitled, pursuant to the Company financial performance component of the 2009 bonus plan, if the goodwill impairment charge was excluded from the calculation of pre-tax accounting income. The cash bonuses paid for fiscal 2009 to named executive officers are reflected in the Summary Compensation Table.
|