Acxiom Corporation
Leadership Team Compensation Plan
Fiscal Year 2006
Compensation for Acxiom's leadership is based upon principles
designed to align leadership compensation
with business strategy, Acxiom values and management initiatives.
The Plan is designed to:
o
align the leaders' interests with the stockholders' and investors'
interests,
o
motivate the leaders to achieve the highest level of performance,
o
retain key leaders by linking executive compensation to Acxiom's
performance, and
o
attract the best candidates through competitive, market-based
plans.
The resulting compensation strategy is targeted to provide an
overall level of compensation opportunity
that is competitive within the markets in which Acxiom competes, as
well as within a broader group of companies
of comparable size and complexity.
Actual compensation levels may eventually be greater than or less
than the
average competitive market levels, based upon the achievement of
Acxiom, as well as upon individual performance.
Components of Compensation
Compensation paid to Acxiom's leaders consists of base pay, cash
incentive pay and long-term incentive
compensation ("LTI").
The compensation system contains varying compensation levels and
criteria for determining
cash incentive pay and LTI, which provides flexibility in
establishing appropriate total cash compensation and
LTI packages for Acxiom's leadership.
Base Pay - Base pay levels are largely determined through market
surveys of comparable companies and
positions.
Actual base salaries are determined by individual performance,
which is assessed annually through the
Acxiom performance review process, and market comparisons.
Cash Incentive Pay - Cash incentive pay is used primarily to reward
leaders for meeting or exceeding
Compan
