Apple 2007 Annual Report Download - page 111

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E. Fiscal 2007 Compensation Decisions
1.
No Equity Grants or Salary Changes
In fiscal 2007, the Committee did not grant new equity awards or increase base salaries for the named executive officers. Based on its
assessment of the factors discussed above and the Committee's belief that the outstanding, unvested equity grants at the beginning of
fiscal 2007 had significant retention value, the Committee concluded that the compensation packages for the named executive officers
were reasonable without additional equity awards. The outstanding equity grants at the end of fiscal 2007 are shown on the Outstanding
Equity Awards table on pages 110 and 111. Based on a review of competitive practices and the Committee's approach to place less
emphasis on cash compensation, the Committee concluded that the total compensation for the officers were appropriate for fiscal 2007
without a salary increase.
2.
2007 Performance
-
Based Cash Incentive Plan Payments
Apple's fiscal 2007 performance significantly exceeded the revenue and operating income goals established under the cash incentive
plan, so the Committee, in the exercise of its discretion, approved payouts to the named executive officers at the maximum of 100% of
base salary, pursuant to the payout matrix on page 105. The specific payment amounts are shown in the Summary Compensation Table at
page 108.
Compensation Committee Report(1)
The Compensation Committee has certain duties and powers as described in its charter. The Compensation Committee is currently composed of
the three non-employee directors named at the end of this report, each of whom is independent as defined by the NASDAQ listing standards.
(1) SEC filings sometimes "incorporate information by reference." This means the Company is referring to information that has previously
been filed with the SEC, and that this information should be considered as part of this filing. Unless the Company specifically states
otherwise, this report shall not be deemed to be incorporated by reference and shall not constitute soliciting material or otherwise be
considered filed under the Securities Act or the Securities Exchange Act.
The Compensation Committee has reviewed and discussed with management the disclosures contained in the Compensation Discussion and
Analysis section of this Form 10-K. Based upon this review and discussion, the Compensation Committee recommended to the Board of
Directors that the Compensation Discussion and Analysis section be included in this Form 10-
K and the Company's Proxy Statement for its 2008
Annual Meeting of Shareholders, to be filed with the SEC.
Compensation Committee of the Board of Directors
William V. Campbell (Chairman)
Millard S. Drexler
Albert A. Gore, Jr.
107