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Submitted by lotsoflove on March 30, 2008
Category: Business
Words: 329 | Pages: 2
Views: 56
Popularity Rank: 110,434
Average Member Grade: N/A (Add a Comment / Grade this Paper)
In establishing and evaluating the effectiveness of compensation programs for
executive officers, as well as other senior executives of Mattel, the
Compensation Committee is guided by three basic principles:
• Mattel must offer competitive salaries and other benefits to be
able to attract, retain and motivate highly-qualified and
experienced executives;
• Cash compensation for executives in excess of base salaries
should be tied to Mattel's performance, individual performance
or both; and
• The financial interests of Mattel's executives should be aligned
with the financial interests of the stockholders, primarily
through equity programs and short- and long-term incentive plans.
Mattel benchmarks its total compensation levels by comparing itself to other
large, global, consumer product companies, in order to make Mattel's
compensation opportunities competitive with what other leading companies are
providing. Mattel compares its pay to leading companies because Mattel wants to
attract and retain talented employees who will lead Mattel to greater business
success. Mattel generally intends for its overall executive compensation
packages to be at or above the average for global consumer product companies,
but Mattel does not target a specific percentile for benchmarking purposes.
comparative market data regarding compensation, aspects of compensation paid to
senior executives of Mattel, incentive concepts, financial and other performance
measures and equity incentive plans.
The Compensation Committee establishes the base salaries of executive officers
at levels it determines are appropriate in light of the duties and scope of
responsibilities of each officer's position. The Compensation Committee reviews
executive officer salaries...
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