ANNUAL INCENTIVE PLAN
PROGRAM DESCRIPTION FOR FISCAL YEAR 2007
The objective of the Annual Incentive Plan (the “AIP”) is to advance the interests of Sara Lee Corporation (“SLC”) by:
Incentive Opportunity & Standards of Performance
Attachment 1 shows the FY07 AIP Target and Maximum payout levels at the various salary grades. The following applies to the
All Standards of Performance are measured over a one-year performance period, i.e. the Incentive Plan Year. The Incentive Plan
Year for FY07 is July 2, 2006 to June 30, 2007.
Performance Level Definitions
In FY07 Sara Lee will provide an enhanced payout level in order to motivate executives to deliver results that exceed Target
levels. As shown in Attachment 3 the payout curve has been enhanced to payout at an increased rate between Target and 10%
of Target. Attachment 3 graphically displays this enhancement.
Level 5 - Maximum – An unusually high level of performance far exceeding targeted performance requiring significant “stretch”
Level 4 – Above Target – A high level of performance exceeding targeted performance requiring “stretch” to achieve.
Level 3 - Target –Target level of performance typically equivalent to the Annual Operating Plan (“AOP”).
Level 2 - Below Target – The level of performance at which attainment of goals is below the Target level but considerably
above the Threshold level.
a) Rewarding financial performance that contributes to increased shareholder value;
b) Measuring the effectiveness of SLC operating performance and capital management;
c) Basing a significant portion of all executives’ incentives on operating plan results;
d) Continuing to provide significant rewards for exceptional performance.
Financial and Individual Standards of Performance are established at the beginning of the Incentive Plan Year.
The Financial Standards of Performance for Corporate Staff Partici