Summary
This Form 8-K filing by The NASDAQ Stock Market, Inc. (NDAQ) from January 2006 details the approval of the 2006 performance goals and parameters for its Executive Corporate Incentive Plan (ECIP). This plan is designed to align executive compensation with company performance and ensure tax deductibility under Section 162(m) of the Internal Revenue Code. The key focus is on how executive bonuses will be determined based on a combination of company-wide financial metrics and business-specific goals, with payouts ranging from zero to 200% of target amounts depending on performance against these objectives. Additionally, the filing reports a specific compensation decision for the President and CEO, Robert Greifeld, including a new annual base salary of $1,000,000, effective January 18, 2006. The company also disclosed a supplemental award for Executive Vice President and General Counsel, Edward S. Knight, related to the 2005 ECIP. These disclosures provide insight into Nasdaq's executive compensation structure and specific remuneration decisions for its top executives.
Key Highlights
- 1NASDAQ approved the 2006 performance goals and parameters for its Executive Corporate Incentive Plan (ECIP).
- 2The ECIP links executive bonuses to both company-wide financial goals and business-specific metrics.
- 3Bonus payouts can range from 0% to 200% of the target amount, with performance at target equaling 100% and exceeding goals leading to higher payouts.
- 4Both financial and non-financial performance goals are established for participants.
- 5The President and CEO's annual base salary was set at $1,000,000, effective January 18, 2006.
- 6A supplemental award of $83,600 was approved for Executive Vice President and General Counsel Edward S. Knight under the 2005 ECIP.