exv10w1



 







Exhibit 10.1

ARBITRON INC.




Schedule of 2004 Bonuses and 2005 Bonus Parameters

for Named Executive Officers




2004 Bonuses for Named Executive Officers





     On January 27, 2005, the Compensation and Human Resources Committee (the “Committee”) of the
Board of Directors of Arbitron Inc. (the “Company”) met and made certain determinations that affect
the bonuses for executive officers for 2004.



     The Committee previously established certain parameters for determining bonuses for executive
officers for 2004. These parameters included achievement of various objective and subjective
Company performance goals, as well as individual performance goals in certain circumstances. The
bonus determinations for Mr. Steve Morris, the Company’s President and Chief Executive Officer, and
Mr. Bill Walsh, the Company’s Executive Vice President, Finance and Planning and Chief Financial
Officer, were established based on the Committee’s review and determination of the Company’s 2004
performance in comparison to the goals established by the Committee. Bonuses for Mr. Owen
Charlebois, Ms. Linda Dupree and Mr. Pierre Bouvard, the Company’s other named executive officers,
were established based on an assessment of their individual performance and the determination by
the Committee of the Company’s performance based on the goals previously established by the
Committee. As a result of the Committee’s review and determination, the following executive
officers will be entitled to a bonus for 2004 in the amounts set forth below:



	 	 	 	 	 
	Name and Principal Position	 	2004 Bonus	 
	 
	 	 	 	 
	Steven B. Morris
	 	 	 	 
	President and Chief Executive Officer
	 	77% of 2004 base salary
	 
	 	 	 	 
	Owen Charlebois
	 	 	 	 
	President, U.S. Media Services
	 	51% of 2004 base salary
	 
	 	 	 	 
	Linda Dupree
	 	 	 	 
	Senior Vice President, Portable People Meter/National Marketing Panel
	 	49% of 2004 base salary
	 
	 	 	 	 
	William J. Walsh
	 	 	 	 
	Executive Vice President of Finance and Planning and
Chief Financial Officer
	 	44% of 2004 base salary
	 
	 	 	 	 
	Pierre C. Bouvard
	 	 	 	 
	President, Portable People Meter/International
	 	41% of 2004 base salary
	 
	 	 	 	 
	2005 Bonus Parameters for Named Executive Officers
	 	 	 	 






     On February 23, 2005, the Compensation and Human Resources Committee (the “Committee”) of the
Board of Directors of Arbitron Inc. (the “Company”) met and approved the establishment of certain
parameters for determining bonuses for executive officers for 2005, which would be payable in early
2006.



     The Committee set various objective and subjective Company goals in terms of earnings per
share, revenue and implementation of certain non-financial initiatives, with certain weightings
attributable to achievement of each of these goals. The Committee then established various criteria
for achieving “threshold”, “target” and “superior” performance in relation to these goals. Under
the bonus arrangements currently in place, each executive officer’s bonus can be weighted to take
into account achievement of both Company goals and individual goals. As a general matter, the bulk
of an executive officer’s bonus for 2005 will be determined as a result of achievement of Company
goals, with the remaining portion based on achievement of individual goals, except in the case of
Mr. Steve Morris, the Company’s President and Chief Executive Officer, and Bill Walsh, the
Company’s Executive Vice President,



 









 





Exhibit 10.1




Finance and Planning and Chief Financial Officer, whose bonuses will be determined entirely on the
basis of achievement of Company goals.




     Taking into account the foregoing, the Committee established a “target” bonus for each
executive officer, expressed as a percentage of base salary. The target bonuses for the executive
officers who are expected to be “named executive officers” in 2005 are set forth below:



	 	 	 	 	 
	Name and Principal Position	 	2005 Target Bonus	 
	 
	 	 	 	 
	Steven B. Morris
	 	 	 	 
	President and Chief Executive Officer
	 	75% of 2005 base salary
	 
	 	 	 	 
	Owen Charlebois
	 	 	 	 
	President, U.S. Media Services
	 	50% of 2005 base salary
	 
	 	 	 	 
	Pierre C. Bouvard
	 	 	 	 
	President, Portable People Meter/International
	 	40% of 2005 base salary
	 
	 	 	 	 
	William J. Walsh
	 	 	 	 
	Executive Vice President of Finance and Planning and
Chief Financial Officer
	 	40% of 2005 base salary
	 
	 	 	 	 
	Scott Henry
	 	 	 	 
	Executive Vice President and Chief Information Officer
	 	40% of 2005 base salary






     In addition, the Committee approved a supplementary bonus opportunity based on achievement of
certain additional non-financial goals in 2005. Under this opportunity, executive officers may be
eligible to receive an additional bonus equal to up to 100% of their “target” bonus if these
non-financial goals are achieved.



     The Committee has the discretion to award bonuses in excess of the percentages set forth
above.