ADT 2010 Annual Report Download - page 53

14DEC201013210950
September 24, 2010. The one year period is represented by the fiscal 2010 annual performance bonus
and the three-year period is represented by long-term equity awards granted to the Chief Executive
Officer for fiscal 2008.
$3.00
$2.75
$0.00
$1.25
$1.00
$0.75
$0.50
$0.25
$1.50
$1.75
$2.00
$2.25
$2.50
Target
EPS
Actual
$1,600
$0
$700
$600
$500
$400
$300
$200
$100
$900
$800
$1,200
$1,100
$1,000
$1,300
$1,400
$1,500
Target
Free Cash Flow
Actual
$16,000
$15,000
$15,300
$15,400
$15,500
$15,200
$15,100
$15,600
$15,700
$15,800
$15,900
Target
Total Revenus $
Actual
100%
90%
80%
70%
60%
0%
10%
20%
30%
40%
50%
Target
3 Year Relative TSR
Actual
Short-term Bonus Long-term Awards
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Target Realized
$4,062,500
$15,000,000
$2,031,250
$3,612,135
FY08 Long-term Equity Awards
FY10 Short-term Performance Bonus
In $M
In $M
Percentile
Rank
Mr. Breen became our Chairman and Chief Executive Officer in July 2002, and long-term equity
incentive awards have consistently been a substantial part of his compensation since he was hired.
Mr. Breen was hired at a time of uncertainty for the Company, and his compensation was heavily
weighted with stock options and other equity awards that aligned his interests with the Company’s
performance. Until recently, Mr. Breen has not exercised options or sold any of his other vested equity
awards since he joined the Company (other than for taxes). Because the ten-year term of the stock
options granted in 2002 is nearing expiration, Mr. Breen recently entered into a Rule 10b5-1 trading
plan as part of his personal long-term financial, estate and tax planning strategy. The plan allows for
the orderly liquidation of his stock options prior to their expiration in 2012. Assuming that all of
Mr. Breen’s options are exercised and the underlying shares are sold, Mr. Breen would retain a
substantial equity position in the Company.
2011 Proxy Statement 45