SUMMARY COMPENSATION SHEET
The following summarizes certain compensation decisions taken by the Compensation Committee and/or the Board of Directors
(“Board”) of Shoe Carnival, Inc. (the “Company”), with respect to the compensation of executive officers.
1. 2006 Base Salary
The Compensation Committee increased the base salaries of the Company’s executive officers after a review of the Company’s
financial performance for fiscal 2005, along with a review of executive compensation practices within the retail and footwear
industries. The salary increases were granted on March 13, 2006, with an effective date of January 29, 2006.
Fiscal 2006 base salaries:
2. Split-Dollar Life Insurance
In March 1999, the Company established a split-dollar life insurance arrangement on the lives of Mr. Lemond and his spouse.
The life insurance policy provides coverage in the amount of $1.0 million, payable on the death of the last to survive. The
annual premiums on the policy are $21,300. Under the arrangement, at the later of the death of Mr. Lemond or his spouse, the
Company will be reimbursed for all premiums paid by it, and the balance of the proceeds of the policy would be paid to the
estate of Mr. Lemond or his spouse.
Prior to the enactment of the Sarbanes-Oxley Act on July 30, 2002, the Company paid all of the premiums on the policy. There is
currently uncertainty as to whether the payment of premiums on a split-dollar life insurance policy by a company would
constitute a personal loan prohibited under the Sarbanes-Oxley Act. Due to this uncertainty, Mr. Lemond now pays the
premiums on his split-dollar life insurance policy, and the Company pays to Mr. Lemond a bonus in an amount sufficient to
cover the premium paid by Mr. Lemond and the tax liability on the bonus. The bonus to reimburse Mr. Lemond for the 2006
premium payment and associated taxes is $35,000.
Mark L. Lemond