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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): March 28, 2007
AARON RENTS, INC.
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(Exact name of Registrant as Specified in its Charter)
Georgia 1-13941 58-0687630
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(State or other Jurisdiction of (Commission File (IRS Employer
Incorporation or Organization) Number) Identification No.)
309 E. Paces Ferry Road, N.E.
Atlanta, Georgia 30305-2377
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (404) 231-0011
Not Applicable
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
INCENTIVE BONUSES
At a meeting on March 28, 2007, the Compensation Committee of the Board
of Directors of Aaron Rents, Inc. (the "Company") approved plan rules under the
Company's Executive Bonus Plan for its 2007 fiscal year for the following
executive officers of the Company (the "named executive officers"): R. Charles
Loudermilk, Sr., Chairman and Chief Executive Officer; Robert C. Loudermilk,
Jr., President and Chief Operating Officer; Gilbert L. Danielson, Executive Vice
President and Chief Financial Officer; W. Kenneth Butler, President, Aaron's
Sales & Lease Ownership Division; and K. Todd Evans, Vice President,
Franchising, Aaron's Sales & Lease Ownership Division.
As with bonuses in prior years, the 2007 plan rules provide for the
payment to the named executive officers of cash incentives equal to specified
percentages of the pre-tax earnings of the Company for its 2007 fiscal year,
provided that 2007 pre-tax earnings exceed those of 2006, except in the cases of
Mr. Butler, whose bonus depends on the cash basis pre-tax earnings of the
Aaron's Sales & Lease Ownership Division, and of Mr. Evans, whose bonus depends
on achievement of quarterly pre-tax profit objectives for the Aaron's Sales &
Lease Ownership Division's franchise operations and on new franchise store
openings. The maximum percentage of pre-tax earnings that may be awarded is
0.7%, for Mr. Loudermilk, Sr. Until further notice, the Board intends to
continue this incentive plan in subsequent fiscal years.
SALARIES
At its March 28 meeting, the Compensation Committee also approved a
salary increase for Mr. Loudermilk, Sr. of $346,000 and salary raises of $25,000
for each of Messrs. Loudermilk, Jr., Danielson and Butler, and $10,000 for Mr.
Evans, bringing their annual salaries to the following amounts: Mr. Loudermilk,
Sr.--$800,000; Messrs. Loudermilk, Jr. and Danielson--$400,000 each; Mr.
Butler--$475,000; and Mr. Evans--$200,000. Prior to these raises, Mr.
Loudermilk, Sr.'s annual salary had remained the same for over ten years.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AARON RENTS, INC.
By: /s/ Gilbert L. Danielson
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Gilbert L. Danielson
Executive Vice President,
Date: April 3, 2007 Chief Financial Officer
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