UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the Securities

Exchange Act of 1934

 

Filed by the Registrant þ

 

Filed by a Party other than the Registrant o

 

Check the appropriate box:

 

 

GAYLORD ENTERTAINMENT COMPANY

 

(Name of Registrant as Specified in its Charter)

 

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

 

Payment of Filing Fee (Check the appropriate box):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 2, 2007

 

Dear Stockholder:

 

 

You are cordially invited to attend the 2007 Annual Meeting of Stockholders of Gaylord Entertainment Company at the Gaylord Palms Resort and Convention Center in Kissimmee, Florida on May 3, 2007 at 10:00 a.m. local time.

 

 

Details of the business that will be conducted at the Annual Meeting are given in the attached Notice of Annual Meeting, proxy statement and proxy card.

 

 

It is important that your shares be represented and voted at the Annual Meeting. If you do not plan to attend the Annual Meeting, please complete, sign, date and return the enclosed proxy card promptly in the accompanying reply envelope. If you received your Annual Meeting materials via email, the email contains voting instructions and links to the annual report and proxy statement on the Internet, which are both available at www.gaylordentertainment.com on the Investor Relations page. If you decide to attend the Annual Meeting and wish to change your proxy vote, you may do so by voting in person at the Annual Meeting.

 

 

We look forward to seeing you at the Annual Meeting.

 

Sincerely,

 

Colin V. Reed

Chief Executive Officer, President
and Chairman of the Board

 

GAYLORD ENTERTAINMENT COMPANY
One Gaylord Drive
Nashville, Tennessee 37214
(615) 316-6000

 

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

 

 

 

 

Nashville, Tennessee

April 2, 2007

PROXY STATEMENT

 

 

 

The Board of Directors of Gaylord Entertainment Company (“Gaylord,” the “Company,” “we” or “us”) is soliciting proxies for the 2007 Annual Meeting of Stockholders on May 3, 2007, and any postponements and adjournments of such meeting. This Proxy Statement contains important information for you to consider when deciding how to vote on the matters brought before the meeting. Please read it carefully.  A copy of our 2006 Annual Report to Stockholders, this Proxy Statement and accompanying proxy card are being mailed to our stockholders beginning on or about April 2, 2007.

 

 

Table of Contents

 

 

At the Annual Meeting, stockholders will be asked to vote on the election of nine (9) members of the Board of Directors to serve until the next annual meeting of stockholders and until their successors are duly elected and qualified. The stockholders will also be asked to vote on the ratification of the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for fiscal year 2007. The stockholders also will transact any other business that properly comes before the meeting.

 

You may vote if you were a holder of record of shares of our common stock at the close of business on March 13, 2007 (the record date). On the record date, there were 40,908,309 shares of common stock outstanding. The shares were held by approximately 2,094 holders of record. You are entitled to one vote for each share of common stock held by you as of the record date.

 

If you hold the shares in your own name, you can vote in person at the meeting or by signing and dating each proxy card you receive and returning it in the enclosed prepaid envelope. If you vote by proxy, the proxies identified on the back of the proxy card will vote your shares in accordance with your instructions. If you submit a signed proxy card but do not mark the boxes showing how you wish to vote, the proxies will vote your shares FOR the proposal.

 

In addition, Gaylord stockholders can vote using the Internet or by phone. To use the Internet, log onto www.proxyvote.com to transmit your voting instructions up until 11:59 p.m. Eastern time on May 2, 2007 (for shares in Gaylord’s 401(k) Savings Plan, the voting deadline is 11:59 p.m. Eastern time on May 1, 2007). Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. To vote by phone, dial 1-800-690-6903 using a touch-tone telephone up until 11:59 p.m. Eastern time on May 2, 2007 (for shares in Gaylord’s 401(k) Savings Plan, the voting deadline is 11:59 p.m. Eastern time on May 1, 2007). Have your proxy card in hand when you call and then follow the instructions.

 

If you do not own your shares directly, but instead are the beneficial owner of shares held in “street name” by a broker, your broker, as the record holder of the shares, must vote those shares in accordance with your instructions. If you do not give instructions to your broker, your broker can vote your shares with respect to “discretionary” items, but not with respect to “non-discretionary” items. On non-discretionary items for which you do not give instructions, the shares will be treated as “broker non-votes.” A discretionary item is a proposal that is considered routine under the rules of the New York Stock Exchange. Shares held in street name may be voted by your broker on discretionary items in the absence of voting instructions given by you. The proposals to be presented at the Annual Meeting are considered routine and therefore may be voted upon by your broker if you do not give instructions for the shares held by your broker.

 

Participants in the Company’s 401(k) Savings Plan are entitled to vote the shares held under the 401(k) Savings Plan in their name. To do this you must sign and timely return the proxy card you received with this Proxy Statement. Your proxy card will be considered your confidential voting instructions, and the 401(k) Savings Plan trustee will direct your vote in the manner you indicate on the proxy card. In order to do this, the proxy results for the shares held in the 401(k) Savings Plan will be tabulated by our transfer agent for all plan participants and reported to the 401(k) Savings Plan trustee on an aggregate basis. The overall vote tallies will not show how individual participants voted. The trustee will vote the shares at the meeting through the custodian holding the shares. If a plan participant’s voting instructions are not received by our transfer agent before the meeting, or if the proxy is revoked

by the participant before the meeting, the shares held by that participant will be considered unvoted. All unvoted shares in the plan will be voted at the Annual Meeting by the 401(k) Savings Plan trustee.

 

Your proxy card represents all shares registered in your name with the transfer agent on the record date, including those shares owned pursuant to the Company’s 401(k) Savings Plan.

 

The holders of a majority of the shares of our common stock outstanding on the record date, or 20,454,155 shares, in person or by a valid proxy, must be present at the meeting for any business to be conducted, known as a “quorum.” Proxies received but marked as “withhold authority,” “abstain” and/or “broker non-votes” will be counted as shares that are present and entitled to vote for purposes of determining the presence of a quorum.

 

If a quorum is not present at the scheduled time of the Annual Meeting, we may adjourn the Annual Meeting, either with or without a vote of the stockholders. If we propose to have the stockholders vote whether to adjourn the meeting, the people named in the enclosed proxy will vote all shares of our common stock for which they have voting authority in favor of the adjournment. We also may adjourn the meeting if for any reason we believe that additional time should be allowed for the solicitation of proxies. An adjournment will have no effect on the business that may be conducted at the Annual Meeting.

 

The Board recommends that you vote: FOR the election of each nominee to the Board; and FOR the ratification of the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for fiscal year 2007.

 

You can revoke your proxy at any time before the meeting by:

 

 

Representatives of our transfer agent, Computershare, will count the votes and act as the independent inspectors of the election.

 

If you send in a signed proxy but do not give any voting instructions, your shares will be: (a) voted FOR election of the nine (9) nominees to the Board of Directors; and (b) voted FOR ratification of the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm.

 

We are not aware of any business to be considered at the Annual Meeting other than the proposals described in this proxy statement. If any other business is properly presented at the meeting, your signed proxy card authorizes Colin V. Reed, Ralph Horn and Carter R. Todd to use their discretion to vote on these other matters.

 

You have three choices on the Election of Directors proposal to be voted upon at the Annual Meeting. You may:

 

 

Pursuant to our Bylaws, directors must be elected by a plurality of the votes of the shares present (in person or by proxy) and entitled to vote for the election of directors. This means that the nine (9) nominees receiving the greatest number of votes will be elected as directors. If you withhold authority to vote for a director, your withholding authority will have no effect on the outcome. Broker non-votes also will have no effect on the voting outcome of the election of directors.

 

For the ratification of the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm and any other matter that properly comes before the meeting, the affirmative vote of the majority of the shares present in person or represented by proxy and entitled to vote on such matter is required. A proxy card marked “ABSTAIN” will not be counted “for” or “against” any such matter and, if the matter is non-discretionary, broker non-votes will not be counted “for” or “against” any such matter. If you abstain from voting on the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm, your abstention will have the same effect as a vote against the proposal. As noted above, if any other matter properly comes before the meeting, your signed proxy card authorizes Colin V. Reed, Ralph Horn and Carter R. Todd to use their discretion to vote on any such matter.

 

Yes. All proxy cards and vote tabulations that identify an individual stockholder are kept confidential. Except to meet legal requirements, your vote will not be disclosed to us unless:

 

 

This policy does not prevent us from ascertaining which stockholders have voted or from taking actions designed to encourage stockholder voting.

 

We will bear the cost of soliciting proxies for the Annual Meeting. We have retained Automatic Data Processing, Inc. to assist in the solicitation and will pay approximately $5,000 for its assistance. Our officers and employees may also solicit proxies by mail, telephone, e-mail or facsimile transmission. They will not be paid additional remuneration for their efforts. Upon request, we will reimburse brokers, dealers, banks and trustees, or their nominees, for reasonable expenses incurred by them in forwarding proxy material to beneficial owners of shares of our common stock.

 

You may vote on the election of nine (9) directors to the Board of Directors.

 

The current Board of Directors consists of ten (10) directors. All of our directors are elected annually. Nine (9) directors will be elected at the Annual Meeting, with one (1) current director not standing for reelection at the Annual Meeting. All of the nominees are currently directors. The Board expects all of the nominees named below to be available for election. In case any nominee is not available, the person or persons voting the proxies may vote your shares for such other person or persons designated by the Board if you have submitted a proxy card.

 

Directors will be elected by a plurality of the shares present (in person or by proxy) and entitled to vote for the election of directors. Each of the nominees shall be elected to serve as a director until the annual meeting of stockholders in 2008 or until his or her respective successor is duly elected and qualified, or until his or her earlier resignation or removal.

 

Information concerning the nominees proposed by the Board for election as directors is set forth below.

 

 

Mr. Bender has been an executive of Cardinal Health, a provider of products and services to the healthcare industry, since 2003 and is currently the President/General Manager of its retail and alternate care business. Prior to that time, Mr. Bender was Vice President of Store Operations for Victoria’s Secret Stores, an owner and operator of women’s retail clothing stores. He also spent 14 years at beverage distributor PepsiCo in a variety of sales, finance and operating roles.

 

 

Mr. Gaylord served as the Company’s Chairman of the Board from May 1999 through April 2001. He served as interim President and Chief Executive Officer of the Company from July 2000 until September 2000, and as Vice-Chairman of the Board from May 1996 to May 1999. He was the President of the Oklahoma Publishing Company from June 1994 until December 2002. Mr. Gaylord has been Chairman of Gaylord Sports Management since January 2004 and Chairman of Gaylord Films since June 2002.

 

 

Mr. Gee is Chancellor of Vanderbilt University, a position he has held since August 2000. Previously, Mr. Gee was President of Brown University from January 1998 and was President of Ohio State University from September 1990 to January 1998. Mr. Gee is a member of the board of directors of toymaker Hasbro, Inc., retailer Limited Brands, Inc., retailer Dollar General Corp. and coal producer Massey Energy Company.

 

 

Mr. Horn served as the Chairman of the Board of financial services company First Tennessee National Corporation (now First Horizon National Corporation) and First Tennessee Bank, National Association, its principal subsidiary, from 1996 until his retirement in December 2003. Mr. Horn served as Chief Executive Officer of First Tennessee National Corporation from 1994 through 2002 and as its President from 1991 through 2001. Mr. Horn is a director of gaming company Harrah’s Entertainment, Inc. and Mid-America Apartment Communities, Inc., an owner of apartment communities.

 

 

Ms. Levine is Editorial Director of Hearst Magazines, one of the world’s largest magazine publishers. Prior to assuming this role in 2006, Ms. Levine had served as Editor-in-Chief of the Hearst publication Good Housekeeping since 1994. In 2000, she was instrumental in founding O, The Oprah Magazine, and continues to serve as its Editorial Consultant. Ms. Levine also served as Editor-in-Chief of Redbook (1990-1994) and Woman’s Day

(1982-1990) and as a Senior Editor of Cosmopolitan (1976-1982). She is also a director of Finlay Enterprises, Inc., the parent company of Finlay Fine Jewelry.

 

 

Mr. Martin is the Chairman of the Board of Directors of clothing retailer Saks Incorporated, a position he has held since 1987. From 1989 to January 2006, Mr. Martin served as Chairman and Chief Executive Officer of Saks and its predecessor, Proffit’s, Inc. Mr. Martin is a director of Harrah’s Entertainment, Inc. and First Horizon National Corporation.

 

 

Mr. Reed has served as President and Chief Executive Officer and a director of the Company since April 2001, and Mr. Reed was also elected Chairman of the Board of Directors of the Company in May 2005. Prior to joining the Company, Mr. Reed had served as a member of the three-executive Office of the President of Harrah’s Entertainment, Inc. since May 1999, and he had served as Harrah’s Chief Financial Officer since April 1997. Mr. Reed also was a director of Harrah’s from 1998 to May 2001. Mr. Reed served in a variety of other management positions with Harrah’s and its predecessor, hotel operator Holiday Corporation, since 1977. Mr. Reed is a director of First Horizon National Corporation.

 

 

Mr. Rose served as Chairman of the Board of the Company from April 2001 through May 2005 and has served as Chairman of the Executive Committee of the Board of the Company since May 2005. Mr. Rose currently serves as Chairman of the Board of Directors of First Horizon National Corporation. Since 1998, Mr. Rose has been a private investor and Chairman of Midaro Investments, a privately held investment firm. In 1995, Mr. Rose became Chairman of the Board of both the Promus Hotel Corporation and Harrah’s Entertainment, Inc. when the two companies split into two publicly-traded companies. He retired from the Boards of Harrah’s in 1996 and Promus in 1997. Mr. Rose also served as Chairman from 1990 to 1995, and Chief Executive Officer from 1990 to 1994, of the Promus Companies, Incorporated. Mr. Rose is also a director of restaurant operator Darden Restaurants, Inc. and food manufacturer General Mills, Inc.

 

 

Mr. Roth is Chairman and Chief Executive Officer of the Interpublic Group of Companies, a global marketing services company. He was appointed Interpublic’s Chief Executive Officer in January of 2005. Prior to becoming Chairman of Interpublic in July 2004, Mr. Roth had been a member of Interpublic’s Board of Directors since 2002. Previously, Mr. Roth was Chairman of the Board and Chief Executive Officer of financial services company The MONY Group Inc. and its predecessor entities since 1997. Mr. Roth is also a director of Pitney Bowes, Inc., an office technology provider.

 

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE “FOR” EACH OF THESE NOMINEES. PROXIES SOLICITED BY THE BOARD OF DIRECTORS WILL BE SO VOTED UNLESS STOCKHOLDERS OTHERWISE SPECIFY IN THEIR PROXIES.

 

 

Mr. Bowen was a partner at the accounting firm Arthur Andersen LLP until his retirement in 1999, and from 1980 to 1998 he was the partner-in-charge of the audit practice of Andersen’s Memphis and Little Rock offices. Mr. Bowen joined Andersen in 1968 and for more than 25 years specialized in the hospitality/hotel and entertainment industry and was a member of Andersen’s worldwide hospitality industry team. Mr. Bowen is a director and chair of the audit committee for hotel operator Strategic Hotels & Resorts, Inc. and Equity Inns, Inc., a real estate investment trust. Mr. Bowen is not standing for reelection to the Company’s Board of Directors at the

Company’s 2007 Annual Meeting of Stockholders. Mr. Bowen’s decision not to stand for reelection was not the result of any disagreement with the Company.

 

Our business is managed under the direction of the Board of Directors. The Board of Directors delegates the conduct of the business to our senior management team. The Board of Directors held eight meetings during 2006. All incumbent directors attended at least 75% of the Board meetings and meetings of the committees of the Board on which the directors served during their tenure on the Board.

 

Our non-management directors meet in regularly scheduled executive sessions, and they selected Ralph Horn to serve as the presiding or lead director of these executive sessions. A description of the duties of the lead director is also posted on our web site at www.gaylordentertainment.com (under “Corporate Governance” on the Investor Relations page).

 

We have adopted Corporate Governance Guidelines governing the conduct of our Board of Directors. The charters of our Audit Committee, Human Resources Committee and Nominating and Corporate Governance Committee, as well as our Corporate Governance Guidelines, are all posted on our web site at www.gaylordentertainment.com (under “Corporate Governance” on the Investor Relations page).

 

We have also adopted a Code of Ethics which is applicable to all employees, officers and directors, including the principal executive officer, the principal financial officer and the principal accounting officer. The Code of Ethics is available on our web site at www.gaylordentertainment.com (under “Corporate Governance” on the Investor Relations page). We intend to post amendments to or waivers from our Code of Ethics (to the extent applicable to our directors, chief executive officer, principal financial officer or principal accounting officer) at this location on our website.

 

We will provide a copy of our Corporate Governance Guidelines, our committee charters or our Code of Ethics (and any amendments or waivers) to any stockholder or other person upon receipt of a written request addressed to Gaylord Entertainment Company, Attn: Corporate Secretary, One Gaylord Drive, Nashville, Tennessee 37214.

 

We strongly encourage each member of the Board of Directors to attend the Annual Meeting of Stockholders. Nine of the 10 directors then in office attended the 2006 Annual Meeting of Stockholders.

 

Pursuant to our Corporate Governance Guidelines, the Board undertook its annual review of director independence in February 2007. Our Board of Directors determines the independence of its members through a broad consideration of all relevant facts and circumstances, including an assessment of the materiality of any relationship between the Company and a director. In making this assessment, the Board looks not only at relationships from the director’s standpoint, but also at relationships of persons or organizations with which the director has an affiliation. In making its determination, the Board of Directors adheres to the requirements of, and applies the standards set forth by, both the New York Stock Exchange (as set forth in Section 303A.02 of the listed company manual) and the Securities and Exchange Commission.

 

During this review, the Board considered transactions and relationships between each director, or any member of his or her immediate family, and the Company and its subsidiaries and affiliates. The Board also examined transactions and relationships between directors, or their affiliates, and members of the Company’s senior management or their affiliates. The purpose of this review was to determine whether any of these relationships or transactions were inconsistent with a determination that the director is independent. As a result of this review, the Board affirmatively determined that, with the exception of Colin V. Reed and Michael D. Rose (both of whom are executive officers of the Company), all of the current directors of the Company (including all directors nominated for reelection at the Annual Meeting) are independent of the Company and its management.

 

The Board has three standing committees to facilitate and assist the Board in the execution of its responsibilities. The committees are currently the Audit Committee, the Human Resources Committee and the Nominating and Corporate Governance Committee. The table below shows current membership for each of the standing Board committees:

 

 

 

 

In accordance with New York Stock Exchange listing standards, all the committees are comprised solely of non-employee, independent directors.

 

The Audit Committee

 

The Audit Committee is responsible for:

 

 

The Board has determined that all the members of the Audit Committee are financially literate pursuant to the New York Stock Exchange rules. The Board also has determined that Mr. Bowen, Chairman of the Audit Committee, is an “audit committee financial expert” within the meaning stipulated by the Securities and Exchange Commission.

 

In 2006, the Audit Committee met eight times.

 

The Human Resources Committee

 

The Human Resources Committee is responsible for:

 

 

For additional information regarding the Committee’s processes and procedures for considering and determining executive and director compensation, see “Compensation Discussion and Analysis” below. The Committee engages a competent executive compensation consultant, who is independent of conflicts with Board members or

Company management. The compensation consultant assists the Committee in determining if its strategies and plans are advisable based on the Company’s current financial position and strategic goals, as well as developments in corporate governance and compensation design. Each year, at the Committee’s request, the compensation consultant performs several analyses, including internal pay equity, updating of the executive salary structure and modeling of executive compensation levels at different levels of Company performance, to assist the Committee in its review. For the last several years, the Committee engaged Hewitt Associates (“Hewitt”) to assist it in reviewing the Company’s compensation strategies and plans. Beginning in 2007, the Committee (after reviewing proposals from several external compensation consultants and further evaluating the finalists selected from the proposal review process) has engaged Watson Wyatt & Company (“Watson Wyatt”) to perform this function. In 2006, the Human Resources Committee met four times.

 

The Nominating and Corporate Governance Committee

 

The Nominating and Corporate Governance Committee is responsible for:

 

 

In 2006, the Nominating and Corporate Governance Committee met four times.

 

A formal Board evaluation covering Board operations and performance, with a written evaluation from each Board member, is conducted annually by the Nominating and Corporate Governance Committee to enhance Board effectiveness. Recommended changes are considered by the full Board. In addition, each Board committee conducts an annual self-evaluation.

 

The Nominating and Corporate Governance Committee considers candidates for Board membership recommended by its members and other Board members, as well as by management and stockholders. To date the Committee has not engaged a third party to identify prospective nominees. The Committee will only consider stockholder nominees for Board membership submitted in accordance with the procedures set forth below in “Additional Information — Stockholder Nominations of Candidates for Board Membership.”

 

Once the Nominating and Corporate Governance Committee has identified a prospective nominee, the Committee makes an initial determination as to whether to conduct a full evaluation of the candidate. This initial determination is based on whatever information is provided to the Committee with the recommendation of the prospective candidate, as well as the Committee’s own knowledge of the prospective candidate, which may be supplemented by inquiries to the person making the recommendation or others. The preliminary determination is based primarily on the need for additional Board members to fill vacancies or expand the size of the Board and the likelihood that the prospective nominee can satisfy the evaluation factors described below. If the Committee determines, in consultation with the Chairman of the Board and other Board members as appropriate, that additional consideration is warranted, it may request additional information about the prospective nominee’s background and experience. The Committee then evaluates the prospective nominee against the following standards and qualifications:

 

 

 

The Nominating and Corporate Governance Committee also considers such other relevant factors as it deems appropriate, including the current composition of the Board and the evaluations of other prospective nominees. In connection with this evaluation, the Committee determines whether to interview the prospective nominee, and if warranted, one or more members of the Committee, and others as appropriate, will interview prospective nominees in person or by telephone. After completing this evaluation and interview, the Committee makes a recommendation to the full Board as to the persons who should be nominated by the Board, and the Board determines the nominees after considering the recommendation and report of the Committee.

 

New directors participate in an orientation program that includes discussions with senior management, background materials on our strategic plan, organization and financial statements and visits to our facilities. We encourage each director to participate in continuing educational programs that are important to maintaining a director’s level of expertise to perform his or her responsibilities as a Board member.

 

The Human Resources Committee (which functions as our compensation committee) is comprised entirely of independent directors.

 

Summary of Compensation.  As described more fully below, this chart summarizes the annual compensation for the Company’s non-employee directors during 2006:

 

 

 

 

Cash Compensation of Directors.  The Human Resources Committee reviews and recommends the compensation for directors. Directors who are not employees of the Company are compensated for their service as a director as follows:

 

 

The annual retainer payable to members of the Board of Directors increased from $40,000 to $50,000 in August 2006. No additional fees are paid for special meetings.

 

Pursuant to the Company’s Director Deferred Compensation Plan, non-employee directors may defer the fees described above into this plan until their retirement or resignation from the Board. Earnings on fees deferred under this plan accrue based on either, at the participant’s election, the performance of the Company’s common stock or

the performance of a pre-determined investment allocation. In 2006 two directors (Messrs. Gaylord and Horn) participated in this plan.

 

Directors who are employed by the Company do not receive cash compensation for their service as directors. All directors are reimbursed for expenses incurred in attending meetings.

 

Equity Compensation of Directors.  Beginning in August 2006, each newly-elected non-employee director will receive a grant of 3,000 restricted stock units, vesting fully on the first anniversary of the date of grant, pursuant to our 2006 Omnibus Incentive Plan, described below. In addition, beginning in 2007, each non-employee director will receive, as of the date of the first board meeting following our annual meeting of stockholders, an annual grant of 1,500 restricted stock units, vesting fully on the first anniversary of the date of grant, pursuant to our 2006 Omnibus Incentive Plan.

 

Until restricted stock units vest and shares of common stock are issued in conversion of the restricted stock units, the director does not have any rights as a stockholder of the Company with respect to such shares, other than the right to receive a cash payment equal to any dividends paid on the common stock. The restricted stock units permit a director to defer the issuance of the common stock to be issued upon conversion of the restricted stock units to a specific date in the future or until the director’s date of retirement from the Board of Directors, whichever comes first. Shares of common stock issued upon conversion of restricted stock units must be held until six months after the conclusion of a director’s service on the Board of Directors.

 

Prior to 2007, newly-elected non-employee directors received a one-time grant of a non-qualified stock option to purchase 10,000 shares of common stock at an exercise price equal to the fair market value of our common stock on the grant date (defined under the terms of the applicable equity incentive plan as the closing market price of the Company’s common stock on the day preceding the grant date), vesting ratably over a four-year period, with one-fourth vesting annually beginning the first year after the date of grant. In addition, each non-employee director received, as of the date of the first board meeting following our annual meeting of stockholders, an annual grant of a non-qualified stock option to purchase 5,000 shares of common stock, at an exercise price equal to the fair market value of our common stock on the grant date (defined under the terms of the applicable equity incentive plan as the closing market price of the Company’s common stock on the day preceding the grant date), vesting on the first anniversary of the award date. These options generally had a term of 10 years.

 

Director Stock Ownership Guidelines.  We have adopted stock ownership guidelines for non-employee directors. The guidelines provide that directors must hold a minimum of 5,000 shares of our common stock, with a five-year time period in which to comply with such requirement. Unvested shares of restricted stock or shares of common stock issuable upon conversion of outstanding restricted stock units will be credited toward this requirement.

 

Stockholders, employees and other parties interested in communicating directly with members of the Board of Directors (including our non-management directors) may do so by writing to Corporate Secretary, Gaylord Entertainment Company, One Gaylord Drive, Nashville, Tennessee 37214. As set forth in the Corporate Governance Guidelines, the Corporate Secretary reviews all such correspondence and regularly forwards to the Board a summary of all such correspondence and copies of all correspondence that, in the opinion of the Corporate Secretary, deals with the functions of the Board or committees thereof or that he otherwise determines requires their attention. Directors may at any time review a log of all correspondence received by us that is addressed to members of the Board and request copies of any such correspondence. Concerns relating to accounting, internal controls or auditing matters are immediately brought to the attention of our internal audit department and handled in accordance with procedures established by the Audit Committee with respect to such matters. In addition, stockholders, employees and other interested parties may communicate directly with the lead non-management director (Mr. Ralph Horn), individual non-employee directors or the non-employee directors as group by email at boardofdirectors@gaylordentertainment.com.

 

The Audit Committee of the Board of Directors has established procedures for employees, stockholders, vendors or others to communicate concerns about our ethical conduct or business practices, including accounting, internal controls or financial reporting issues, to the Audit Committee, which has responsibility for these matters. Matters may be reported as follows:

 

 

Carter R. Todd
One Gaylord Drive
Nashville, TN 37214
615-316-6186

 

 

During the Company’s last fiscal year, there were no related person transactions that are required to be disclosed pursuant to Item 404(a) of Regulation S-K under the Securities Exchange Act of 1934.

 

Our policies and procedures for the review, approval or ratification of related person transactions are as follows: Possible related person transactions are first screened by the Company’s legal department for materiality and then sent to the Audit Committee of the Board for review. In accordance with the Audit Committee Charter, the Audit Committee then reviews and discusses such related person transactions with the Company’s management and independent registered public accounting firm. In its discretion, the Audit Committee may also consult with the Company’s legal department or external legal counsel. Audit Committee review and approval of related person transactions would be evidenced in the minutes of the applicable Audit Committee meeting. To date the Audit Committee has not reviewed any potential related party transactions.

 

The following table sets forth information regarding the beneficial ownership of our common stock as of March 1, 2007 (unless otherwise noted) for:

 

 

The percentages of shares outstanding provided in the table are based on 40,881,881 voting shares outstanding as of March 1, 2007. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Unless otherwise indicated, each person or entity named in the table has sole voting and investment power, or shares voting and investment power with his or her spouse, with respect to all shares of stock listed as owned by that person. The number of shares shown does not include the interest of certain persons in shares held by certain family members in their own right. Shares issuable upon the exercise of options that are exercisable within 60 days of March 1, 2007 are considered outstanding for the purpose of calculating the percentage of outstanding shares of our common stock held by the individual, but not for the purpose of calculating the percentage of outstanding shares held by any other individual. Unless otherwise indicated, the address for each person listed in the table is our principal office.

 

 

 

 

 

The Human Resources Committee (the “Committee”) of the Board has responsibility for establishing, implementing and continually monitoring adherence to the Company’s compensation philosophy. The Committee ensures that the total compensation paid to the Company’s named executive officers and the other senior executive officers is fair, reasonable and competitive. The Committee is also responsible for overseeing the Board’s and management’s evaluation of the performance of the named executive officers and administering the Company’s cash- and equity-based incentive plans. The Committee undertakes these responsibilities pursuant to a written charter adopted by the Committee and the Board, which is reviewed at least annually by the Committee. The charter may be viewed in full on the Company’s website, www.gaylordentertainment.com (under “Corporate Governance” on the Investor Relations page).

 

The Committee is comprised solely of “non-employee directors” as defined in Rule 16b-3 of the rules promulgated under the Securities and Exchange Act of 1934, as amended, “outside directors” for purposes of regulations promulgated pursuant to Section 162(m) of the Internal Revenue Code of 1986, as amended, and “independent directors” as defined in Section 303A of the New York Stock Exchange corporate governance listing standards, in each case as determined by our Board of Directors. In addition to a determination of independence, the Nominating and Governance Committee of our Board recommends Committee membership based on such knowledge, experience and skills that it deems appropriate in order to adequately perform the responsibilities of the Committee.

 

The Committee makes all compensation decisions for the Company’s named executive officers. The Company’s Chief Executive Officer annually reviews the performance of each named executive officer (other than the Chief Executive Officer, whose performance is reviewed by the Committee). Recommendations based on these reviews, including with respect to salary and annual incentive award amounts, are discussed with the Committee. The Committee then discusses and approves compensation for each named executive officer, based on such factors as the compensation analysis performed by the Committee’s external compensation consultant, the Chief Executive Officer’s assessment of individual performance and the Company’s performance.

 

The process is similar for determining compensation for the Chief Executive Officer, except that the Chief Executive Officer does not provide the Committee with a recommendation. The Chief Executive Officer presents a self-assessment of his performance during the year to the Committee, which then meets in executive session to discuss and set his compensation, based on the compensation analysis performed by the Committee’s external compensation consultant and the Committee’s assessment of the Chief Executive Officer’s performance and the Company’s performance.

 

The Committee believes that the most effective executive compensation program is one that is designed to reward the achievement of specific annual, long-term and strategic goals by the Company and which aligns the named executive officers’ interests with those of the stockholders by rewarding performance commensurate with achievement, with the ultimate objective of increasing stockholder value. The Committee evaluates compensation to ensure that the Company maintains its ability to attract and retain superior employees in key positions, including each named executive officer, and that compensation provided to these employees is competitive in the marketplace and is competitive relative to the compensation paid to similarly situated executives of our peer companies. The principal objective of the Company is to maximize stockholder value through the development and enhancement of the Company’s business.

 

To further that objective, the Company’s executive compensation program is designed to:

 

 

The Committee believes that a substantial portion of each named executive officer’s compensation should be based on the Company’s performance achievements, as well as the named executive officer’s own performance goals. The Committee’s compensation philosophy for a named executive officer, therefore, emphasizes an overall analysis of the executive’s performance for the year, projected role and responsibilities, required impact on execution of Company strategy, external pay practices and total cash and total direct compensation positioning, as well as other factors the Committee deems appropriate. Our philosophy also considers employee retention,

vulnerability to recruitment by other companies and the difficulty and costs associated with replacing executive talent.

 

In determining total compensation for 2006, the Committee relied on the results of its assessment of the performance, responsibilities, expectations and experience of each named executive officer. The Committee also relied upon data derived from the Hewitt Associates TCM Survey, a broad-based study of compensation market-wide (using a regression analysis to adjust for differences in Company size), and with respect to the Chief Executive Officer and Chief Financial Officer the compensation consultant’s analysis and comparison of the compensation of these executives to a peer group composed of the following 16 companies from the lodging, attraction and vacation rental industries:

 

 

These companies were selected as peers for compensation comparison purposes because of their similarity to the Company in terms of size (revenues, market capitalization, number of employees and/or operating income), their industry classification and the existence of publicly available data. The peer group study reviewed the competitive pay practices of the peer companies, primarily using publicly available 2005 proxy statement data.

 

The specific analysis regarding the components of total executive compensation for 2006 is described in detail below. The primary components of the 2006 program were cash compensation, consisting of a mix of base salary and annual cash incentive plan compensation, as well as long-term equity incentives, consisting of stock options with time-based vesting in 2006. In establishing the level of long-term equity incentives awarded in 2006, the Committee took into account the impact of the restricted stock unit awards granted in 2003 pursuant to the PARSUP Program, described below. The Company also provides retirement benefits and certain perquisites and other personal benefits.

 

Target Total Compensation.  In 2006 the Committee generally attempted to provide a total compensation package to each named executive officer that was consistent with total compensation in the 50th percentile of total compensation data, based on a broad-based study of compensation market-wide (using a regression analysis to adjust for differences in Company size) provided by the Committee’s compensation consultant. In certain cases the Committee identified an individual named executive officer as deserving of increased total compensation based on

individual performance or upon the need to retain the executive. In these cases the Committee established such named executive officer’s total compensation in a range of the 50^th to the 75^th percentile of total compensation data from the compensation study.

 

In 2006, each named executive officer’s total compensation package consisted of three primary elements:

 

 

There is no pre-established policy or target for the allocation between either cash and non-cash or short-term and long-term incentive compensation. Rather, the Committee reviews information provided by its compensation consultant to determine the appropriate level and mix of incentive compensation. Income from such incentive compensation is realized only as a result of the performance of the Company or the individual, depending on the type of award, compared to established goals. Historically, and in fiscal 2006, the Committee granted a majority of total compensation to the Company’s executive officers in the form of incentive compensation.

 

Base Salary.  We seek to provide base salaries for our named executive officers that provide a secure level of guaranteed cash compensation in accordance with their experience, professional status and job responsibilities. The 2006 base salary compensation of the Company’s named executive officers was based on the factors described above. Base salaries were adjusted by the Committee, however, to reflect other factors such as an individual named executive officer’s achievement of individual performance objectives and base salary during the prior year. Base salaries for 2006 were as follows:

 

 

 

 

Annual Cash Incentive Compensation.  The Company’s named executive officers and other employees participate in the Company’s cash incentive plan in accordance with criteria specified in our omnibus incentive plans. Currently, the annual cash incentive plan is designed to motivate the named executive officers by directly linking the payment of cash incentive compensation to the attainment of designated Company earnings per share (“EPS”) levels. Bonuses for named executive officers who have responsibility for division operating results are based on a combination of that division’s operating income and the Company’s EPS. However, in the event that the threshold performance goal for that division’s operating income is not achieved, those named executive officers will not be eligible for any bonus based on Company EPS performance. In 2006, Mr. Fioravanti was the only named executive officer with responsibility for division operating results. The Committee may determine whether adjustments should be made to reflect non-recurring or extraordinary items affecting the Company’s EPS calculated in accordance with applicable accounting rules. The Committee will also consider whether the named executive officer’s individual annual performance objectives were met when awarding annual cash incentive compensation.

 

The Committee approved the specific financial performance goals for the Company and each division and the amounts of the bonus pools to be established upon attainment of these goals for 2006. The Committee also approved the following potential bonus award opportunities (set as a percentage of base salary) for each named executive officer for 2006:

 

 

The Company’s “threshold” performance goal is the minimum goal established by the Committee meriting the payment of any cash incentive award. The Company’s “target” performance goal is the goal established by the Committee meriting the payment of the target cash incentive award opportunity established by the Committee. The Company’s “stretch” performance goal is the maximum performance goal established by the Company. The percentage of salary awarded for performance falling between the “threshold” and “stretch” goals is to be based on a graduated scale commensurate with the actual results achieved.

 

Based on Company results for 2006 (which substantially exceeded our stretch goals) and applicable division operating results, the following cash incentive plan compensation was awarded to our named executive officers in February 2007: Colin V. Reed ($1,236,033); David C. Kloeppel ($550,421); John P. Caparella ($277,654); Mark Fioravanti ($-0-); and Carter R. Todd ($200,630).

 

Long-Term Equity Incentive Compensation.  The Committee believes that a powerful way to align the long-term interests of the named executive officers with those of stockholders is to award equity-based compensation in the form of stock options, restricted stock and restricted stock unit awards. Further, a significant percentage of each named executive officer’s targeted total compensation is allocated to incentive compensation, including equity-based incentive compensation. The equity-based incentive compensation currently utilized by the Committee is described below.

 

In 2003 the Company established the Performance Accelerated Restricted Stock Unit Program (the “PARSUP Program”). Restricted stock unit awards under the PARSUP Program were made in 2003 to designated key employees of the Company (including all named executive officers). The awards had a five-year performance/retention period, and the awards were eligible for earlier performance vesting in 25% increments beginning in 2004 if during the applicable fiscal year the Company met both of the following performance goals approved by the Committee in any such year: (i) exceeding the Company’s budgeted financial performance by greater than five percent; and (ii) achieving a total stockholder return greater than the 60^th percentile of a designated competitive peer group. None of the restricted stock unit awards under the PARSUP Program vested early as the applicable performance targets were not met, but the awards will fully vest on February 1, 2008 as long as the participating executive continues in active employment until that date. When the restricted stock unit awards under the PARSUP Program were granted, it was generally intended that new awards would not be made until the end of the five-year performance/retention period except in new hire and promotion situations. Since 2003 no additional grants of restricted stock unit awards under the PARSUP Program have been made other than in connection with a participant’s promotion (in 2004 Mr. Fioravanti received an additional 12,500 restricted stock unit awards under the PARSUP Program in connection with his appointment as President, ResortQuest, and in 2006 Mr. Caparella received an additional 5,000 restricted stock unit awards under the PARSUP Program in connection with his appointment as Chief Operating Officer, Gaylord Hotels) or the addition of a new key employee. Until the restricted stock units vest and shares of common stock are issued in conversion of the restricted stock units, the holder does not have any rights as a stockholder of the Company with respect to such shares, other than the right to receive either a cash payment equal to any cash dividend or other distributions paid with respect to the common stock, additional restricted stock units equal to any cash dividend and other distributions paid with respect to the common stock, or if dividends or distributions are paid in shares the fair market value of such shares converted into restricted stock units. The restricted stock units permit the holder to defer the issuance of the common stock to be issued upon conversion

of the restricted stock units to a specific date in the future or until the holder’s termination of employment, whichever comes first.

 

Set forth below are the 2003 restricted stock unit awards under the PARSUP Program held by each named executive officer:

 

 

 

 

See “Potential Payments on Termination or Change of Control” for a description of the vesting and exercise provisions of each named executive officer’s restricted stock unit awards under the PARSUP Program.

 

The Company also makes stock option awards and restricted stock awards pursuant to the 2006 Omnibus Incentive Plan, and prior to adoption of this plan the Company made such awards pursuant to the Company’s 1997 Omnibus Stock Option and Incentive Plan. Annual stock option and restricted stock award levels vary among participants based on their positions within the Company and are granted at the Committee’s regularly scheduled February meeting. Eligible newly hired executives receive awards of stock options or restricted stock as of their hire date, while eligible newly promoted employees receive awards of stock options or restricted stock at the next regularly scheduled Committee meeting on or following their promotion date. Options are awarded at an exercise price equal to the fair market value of the Company’s common stock on the grant date (the closing market price of the Company’s common stock on the day preceding the grant date). The Committee has never granted options with an exercise price determined in another manner other than as set forth above. During 2006, the Company’s internal audit staff undertook a review of the Company’s historical grant practices which confirmed the Company’s consistent adherence to this principle.

 

Each option award or restricted stock award is evidenced by a written agreement between the Company and the employee. Stock options awarded vest ratably over a four-year period, with one-fourth vesting annually beginning the first year after the date of grant, and have a 10-year term. Prior to the exercise of an option, the holder has no rights as a stockholder with respect to the shares subject to such option, including voting rights and the right to receive dividends or dividend equivalents. Restricted stock awards, when made, vest over a four-year period, with one-fourth vesting annually beginning the first year after the date of the grant. Prior to vesting, the holder of a restricted stock award has rights as a stockholder with respect to the shares, including voting rights and the right to receive dividends or dividend equivalents, but may not sell or otherwise dispose of such shares.

 

Equity award levels in 2006 for the Company’s named executive officers were consistent with the market-based 2006 compensation targets identified with the advice of the compensation consultant. During February 2006,

we granted non-qualified options to purchase the Company’s common stock to our named executive officers as follows:

 

 

 

 

See “Potential Payments on Termination or Change of Control” for a description of the vesting and exercise provisions of each named executive officer’s stock option awards and restricted stock awards.

 

Stock Ownership Guidelines.  To directly align the interests of executive officers with the interests of the stockholders and to ensure that they maintain a significant portion of their long-term equity incentive awards, the Committee requires that the Company’s named executive officers maintain a minimum ownership interest in the Company. The value of the Company’s stock (as a multiple of the named executive officers’ base salary) required to be owned is as follows:

 

 

The named executive officers are required to achieve these ownership requirements by December 31, 2011 (five years from the adoption of the requirement). Shares that are either owned directly (including restricted shares of common stock or restricted stock units, whether vested or not) or indirectly through savings plans sponsored by the Company are included in determining whether an individual attains the minimum ownership guidelines. Shares that are subject to unexercised stock options are not included.

 

Retirement Plans.  The Company currently maintains a tax-qualified 401(k) retirement savings plan (the “401(k) Savings Plan”). The 401(k) Savings Plan enables our employees to contribute a portion of their annual salary, subject to a limit prescribed by the Internal Revenue Service (the “IRS”), to the 401(k) Savings Plan on a before-tax basis. In 2006, the Company’s named executive officers, along with certain other highly compensated employees, were limited to a maximum salary deferral of four percent or the limit prescribed by the IRS to the 401(k) Savings Plan on a before-tax basis in order to satisfy applicable IRS “non-discrimination” tests. In 2006 the Company made matching contributions of 50% of each participant’s contributions, up to six percent of the participant’s pay, as well as core contributions of two percent of eligible pay to all employees. In 2006 the Company could also make discretionary profit-sharing contributions, based on achievement of the Company’s financial goals, of up to an additional two percent of eligible pay. In 2006 all employee contributions to the 401(k) Savings Plan were fully vested upon contribution, and any Company contributions were subject to a vesting schedule.

 

Effective January 1, 2007, the 401(k) Savings Plan was amended to meet applicable IRS “safe harbor” requirements by modifying the Company’s matching contributions to be a 100% match on the first five percent of participant contributions. In addition all Company contributions are now immediately vested in full, and the two percent Company core contribution has been eliminated. As a result, the plan is no longer subject to applicable IRS “non-discrimination” tests, permitting senior executive officers of the Company to contribute the lesser of up to 40% of annual salary on a before-tax basis or an IRS-prescribed limit.

 

Participants in the 401(k) Savings Plan may choose to invest their account balances from an array of investment options as selected by plan fiduciaries from time to time, plus a Company stock fund. Participants can daily change their investment selections prospectively by contacting the 401(k) Savings Plan’s trustee.

 

In addition to the 401(k) Savings Plan, the named executive officers, in addition to certain other eligible executive officers, are entitled to participate in an unfunded, unsecured deferred compensation plan (the “Supplemental Deferred Compensation Plan”). The Supplemental Deferred Compensation Plan, deferrals of compensation under the plan by each named executive officer and Company matching obligations under the plan are discussed in further detail under “Nonqualified Deferred Compensation” below. The Company believes that this plan provides an important retirement savings vehicle for senior executive officers.

 

The Company has also agreed to pay Mr. Reed a supplemental executive retirement plan benefit (“SERP”). This benefit is discussed in further detail under “Nonqualified Deferred Compensation” below. This benefit was essential, in the Committee’s view, to attracting Mr. Reed to employment with the Company and has proved valuable in securing his extended employment as well.

 

Perquisites and Other Personal Benefits.  The Company provides the named executive officers with a limited number of perquisites and other personal benefits whose primary purpose is to minimize distractions from the executives’ attention to important Company initiatives. The Company and the Committee believe the perquisites and other personal benefits provided to the named executive officers are reasonable and consistent with its overall compensation program to better enable the Company to attract and retain superior employees for key positions.

 

We provide the following perquisites to the named executive officers, all of which are quantified in the Summary Compensation Table below:

 

 

The Company has entered into employment or severance agreements with certain key employees, including the named executive officers, which obligate the Company to make severance and/or change of control payments to these employees in designated circumstances. Required payments under these agreements for each named executive officer are discussed in “Potential Payments Made on Termination or Change of Control” below.

 

In February 2007, the Committee established criteria for 2007 cash incentive plan compensation pursuant to Section 11 of the 2006 Omnibus Incentive Plan. With the exception of Mr. Caparella and Mr. Fioravanti, each named executive officer will have the opportunity to earn cash incentive compensation equal to the percentage of his 2007 salary set forth in the table below based upon achievement of designated Company EPS performance goals established by the Committee. Mr. Caparella and Mr. Fioravanti will have the opportunity to earn cash incentive compensation equal to the percentage of his 2007 salary set forth in the table below based upon both achievement of designated Company EPS levels and, if the threshold level Company EPS performance goal is met, achievement of applicable operating division performance goals.

 

Based on the Company’s expected results for 2007, the Company anticipates that the named executive officers will likely receive cash incentive plan compensation at the target performance goal level.

 

During February 2007, the Committee also made awards of stock options to the named executive officers consistent with the philosophy described herein with respect to awards made during 2006. The Committee also reviewed base salaries of the named executive officers with the changes below to be made effective April 1, 2007. The table below summarizes the current base salary levels and 2007 equity incentive grants for the named executive officers.

 

 

 

 

During 2007, the Committee expects to undertake a detailed study of long-term incentive compensation, with the assistance of Watson Wyatt. The impetus for this review is the Committee’s belief that it is important to consider the elements of a new long-term incentive plan given several factors, including the vesting of restricted stock unit awards under the PARSUP Program in early 2008, and the level of merger and acquisition activity in the Company’s industry. The effect of that merger and acquisition activity has been to significantly reduce the number of companies in the Company’s peer group and to increase opportunities for the Company’s senior executive officers for enhanced compensation levels in competitive positions, especially at companies in the Company’s industry that have been acquired by private equity groups. The Committee’s intention with respect to undertaking this study is to develop a new long-term incentive plan which will provide significant rewards to senior executive officers over a longer term, for example, five years, only if the Company achieves significant incremental returns for its stockholders during that period.

 

Deductibility of Executive Compensation.  As part of its role, the Committee reviews and considers the deductibility of executive compensation under Section 162(m) of the Internal Revenue Code, which provides that the Company may not deduct compensation of more than $1,000,000 that is paid to certain individuals. The Company believes that compensation paid under the management incentive plans (except for time-based vesting restricted stock and the currently outstanding restricted stock unit awards under the PARSUP Program) is generally fully deductible for federal income tax purposes. However, in certain situations, the Committee may approve compensation that will not meet these requirements in order to ensure competitive levels of total compensation for its executive officers.

 

Nonqualified Deferred Compensation.  On October 22, 2004, the American Jobs Creation Act of 2004 was signed into law, changing the tax rules applicable to nonqualified deferred compensation arrangements. While the final regulations have not become effective yet, we believe we are operating the Supplemental Deferred Compensation Plan in good faith compliance with the statutory provisions which were effective January 1, 2005.

 

Accounting for Stock-Based Compensation.  Beginning on January 1, 2006, the Company began accounting for stock-based payments including all stock option, restricted stock and restricted stock unit awards in accordance with the requirements of SFAS 123(R).

 

The Committee, comprised of independent directors, reviewed and discussed the above Compensation Discussion and Analysis with the Company’s management. Based on the review and discussions, the Committee recommended to the Company’s Board of Directors that the Compensation Discussion and Analysis be included in these proxy materials.

 

HUMAN RESOURCES COMMITTEE:

 

E. GORDON GEE, CHAIRMAN
RALPH HORN
ELLEN LEVINE
MICHAEL I. ROTH

 

The following Summary Compensation Table shows compensation information for Colin V. Reed, our principal executive officer, David C. Kloeppel, our principal financial officer, and the other named executive officers, who are the three most highly compensated executive officers other than Mr. Reed and Mr. Kloeppel.

 

 

 

 

 

 

 

The following table provides information on awards pursuant to the Company’s incentive plan to each of the Company’s named executive officers. The ratable amount of the stock and option awards expensed in 2006 is included in “Stock Awards” or “Option Awards” column, as applicable, in the Summary Compensation Table set forth above.

 

 

 

 

The following table provides information with respect to the outstanding equity awards held by the Company’s named executive officers as of December 31, 2006.