exv10w23



 






Exhibit 10.23




Rent-A-Center, Inc.

Summary of 2005 Compensation Payable

To Named Executive Officers




      On
December 8, 2004, the Compensation Committee of our Board of
Directors established the annual
base salaries for 2005 (effective as of January 1, 2005) of our named executive officers after a
review of performance and competitive market data. In addition, the Compensation Committee
authorized the payment of cash bonuses to each of the executive officers in respect of the year
ended December 31, 2004. The following table sets forth the 2005 annual base salary and 2004 cash
bonus amount for each of our named executive officers (determined by reference to our proxy
statement dated April 12, 2004):



	 	 	 	 	 	 	 	 	 
	Name & Principal Position	 	2005 Annual Base Salary	 	2004 Cash Bonus Amount
	Mark E. Speese, Chairman
of the Board & Chief
Executive Officer

	 	$	685,000	 	 	$	142,500	 
	Mitchell E. Fadel,
President & Chief
Operating Officer

	 	$	500,000	 	 	$	85,500	 
	Robert D. Davis, Senior
Vice President —
Finance, Treasurer and
Chief Financial Officer

	 	$	295,000	 	 	$	47,700	 
	Anthony M. Doll,
Executive Vice President
— Operations

	 	$	251,520	 	 	$	49,000	 
	Dana F. Goble, Executive
Vice President —
Operations

	 	$	285,668	 	 	$	47,750	 
	Christopher A. Korst,
Senior Vice President —
General Counsel and
Secretary

	 	$	270,600	 	 	$	34,000	 






      Also
on December 8, 2004, the Compensation Committee adopted a cash bonus program for the
2005 fiscal year. Our named executive officers, other than Mr. Speese, as well as other officers
and employees at our corporate office, are eligible to participate in the 2005 bonus program. The
2005 bonus program has not been set forth in a formal plan document. Below is a description of the
2005 bonus program, as adopted by the Compensation Committee.



      The purpose of the 2005 bonus program is to promote the interests of Rent-A-Center and its
stockholders by providing key employees with financial rewards upon achievement of specified
business objectives, as well as help us attract and retain key employees by providing attractive
compensation opportunities linked to performance results.



 








 




Bonuses are capped at a certain percentage of the eligible participant’s base salary, with the
percentage depending on the individual’s position within Rent-A-Center. Of the maximum cash bonus
amount an eligible participant may earn, 40% is contingent on the achievement by Rent-A-Center of a
target amount of after tax profit, and the remaining 60% is subject to the achievement of
individual goals and objectives, which are set at the beginning of the fiscal year.



The target bonus percentage and maximum bonus amount for each named executive officer (other than
Mr. Speese) pursuant to the 2005 bonus program is as follows:




	 	 	 	 	 	 	 	 	 
	 	 	2005 Target Bonus	 	Maximum 2005 Bonus
	Name & Principal Position	 	Percentage	 	Amount1
	Mitchell E. Fadel,
President & Chief
Operating Officer

	 	 	40	%	 	$	200,000	 
	Robert D. Davis, Senior
Vice President —
Finance, Treasurer and
Chief Financial Officer

	 	 	35	%	 	$	103,250	 
	Anthony M. Doll,
Executive Vice President
— Operations

	 	 	40	%	 	$	100,608	 
	Dana F. Goble, Executive
Vice President —
Operations

	 	 	40	%	 	$	114,267	 
	Christopher A. Korst,
Senior Vice President —
General Counsel and
Secretary

	 	 	30	%	 	$	81,180	 





1Assumes (1) the after tax profit goal for Rent-A-Center is met and (2) 100%
achievement of the individual’s goals and objectives.




      The bonus to be paid to our Chief Executive Officer with respect to the 2005 fiscal year
will be determined by the Compensation Committee and recommended to the Board of Directors for
approval.



      Payment of bonuses (if any) is normally made in January after the end of the performance
period during which the bonuses were earned. In order to be eligible for a bonus under the 2005
Bonus Program, eligible participants must be employed on the date on which bonuses are paid.
Bonuses normally will be paid in cash in a single lump sum, subject to payroll taxes and tax
withholdings.