ARBITRON INC. Schedule of 2004 Bonuses and 2005 Bonus Parameters for Named Executive Officers
Exhibit 10.19
ARBITRON INC.
Schedule of 2004 Bonuses and 2005 Bonus Parameters
for Named Executive Officers
2004 Bonuses for Named Executive Officers
On January 27, 2005, the Compensation and Human Resources Committee (the Committee) of the Board of Directors of Arbitron Inc. (the Company) met and made certain determinations that affect the bonuses for executive officers for 2004.
The Committee previously established certain parameters for determining bonuses for executive officers for 2004. These parameters included achievement of various objective and subjective Company performance goals, as well as individual performance goals in certain circumstances. The bonus determinations for Mr. Steve Morris, the Companys chief executive officer, and Mr. Bill Walsh, the Companys chief financial officer, were established based on the Committees review and determination of the Companys 2004 performance in comparison to the goals established by the Committee. Bonuses for Mr. Owen Charlebois and Ms. Janice Giannini, two of the Companys other named executive officers, were established based on an assessment of their individual performance and the determination by the Committee of the Companys performance based on the goals previously established by the Committee. As a result of the Committees review and determination, the following executive officers will be entitled to a bonus for 2004 in the amounts set forth below:
Name and Principal Position | 2004 Bonus | |
Stephen B. Morris | ||
President and Chief Executive Officer. | 77% of 2004 base salary | |
Owen Charlebois | ||
President of U.S. Media Services. | 51% of 2004 base salary | |
William J. Walsh | ||
Executive Vice President of Finance and Planning and | ||
Chief Financial Officer. | 44% of 2004 base salary | |
Janice Giannini | ||
Executive Vice President and Chief Information Officer | 37% of 2004 base salary |
The bonus for Mr. Pierre Bouvard, the Companys other named executive officer in 2004, has not yet been determined.
2005 Bonus Parameters for Named Executive Officers
On February 23, 2005, the Compensation and Human Resources Committee (the Committee) of the Board of Directors of Arbitron Inc. (the Company) met and approved the establishment of certain parameters for determining bonuses for executive officers for 2005,
which would be payable in early 2006.
The Committee set various objective and subjective Company goals in terms of earnings per share, revenue and implementation of certain non-financial initiatives, with certain weightings attributable to achievement of each of these goals. The Committee then established various criteria for achieving threshold, target and superior performance in relation to these goals. Under the bonus arrangements currently in place, each executive officers bonus can be weighted to take into account achievement of both Company goals and individual goals. As a general matter, the bulk of an executive officers bonus for 2005 will be determined as a result of achievement of Company goals, with the remaining portion based on achievement of individual goals, except in the case of Mr. Steve Morris, the Companys President and Chief Executive Officer, and Bill Walsh, the Companys Executive Vice President, Finance and Planning and Chief Financial Officer, whose bonuses will be determined entirely on the basis of achievement of Company goals.
Taking into account the foregoing, the Committee established a target bonus for each executive officer, expressed as a percentage of base salary. The target bonuses for the executive officers who are expected to be named executive officers in 2005 are set forth below:
Name and Principal Position | 2005 Target Bonus | |
Stephen B. Morris | ||
President and Chief Executive Officer. | 75% of 2005 base salary | |
Owen Charlebois | ||
President of U.S. Media Services. | 50% of 2005 base salary | |
Pierre C. Bouvard | ||
President of International/New Ventures. | 40% of 2005 base salary | |
William J. Walsh | ||
Executive Vice President of Finance and Planning and | ||
Chief Financial Officer. | 40% of 2005 base salary | |
Scott Henry | ||
Executive Vice President and Chief Information Officer | 40% of 2005 base salary |
In addition, the Committee approved a supplementary bonus opportunity based on achievement of certain additional non-financial goals in 2005. Under this opportunity, executive officers may be eligible to receive an additional bonus equal to up to 100% of their target bonus if these non-financial goals are achieved.
The Committee has the discretion to award bonuses in excess of the percentages set forth above.