Mr. Kartsotis is one of the initial investors in our company and expressed his belief that his primary
compensation is met by continuing to drive stock price growth.
Committee as requested, although the Compensation Committee meets in executive session with only
Compensation Committee members present when it deems appropriate. The CEO attended a portion of all of the
Compensation Committee's formal meetings during fiscal 2011.
quantitative measures of our performance and positioning, and position competencies, which are qualitative
measures of individual performance and talent. Some of the business metrics include net sales, operating expense
leverage, operating income, and gross margin. Some of the position competencies that are evaluated for each
Named Executive Officer include setting direction and vision for the organization, cultivating corporate culture,
managing resources, driving execution, decision making, leading communications, inspiring creativity and
change, resolving conflict and collaborating, identifying and maximizing talent, coaching and developing,
scorekeeping, and teambuilding. The overall performance review rating is used in determining base salary
increases, short-term incentive payouts and the size of any equity grants.
review the qualitative and quantitative measures and subjectively determine the appropriate performance rating.
The Compensation Committee and CEO do not assign any specific weights to the various qualitative and
quantitative factors nor do they use any formulas to determine the appropriate performance rating. In addition, no
one qualitative or quantitative factor is material to the ultimate determination of each Named Executive Officer's
In addition, during the first quarter of fiscal 2012, each Named Executive Officer's 2011 cash bonus was paid
based on his or her 2011 performance appraisal.
expectations" performance rating to Ms. Pritchard and Mr. Kovar for fiscal year 2011.