ADT 2013 Annual Report Download - page 34

COMPENSATION OF EXECUTIVE OFFICERS
COMPENSATION OF EXECUTIVE OFFICERS
Compensation Discussion and Analysis
This section of the Proxy describes in detail the Company’s compensation philosophy and its compensation programs, and reviews
compensation decisions for fiscal year 2013 for its Named Executive Officers (the “NEOs”). Our NEOs for fiscal year 2013 are listed below.
Name Title
Naren Gursahaney President and Chief Executive Officer (“CEO”)
Alan Ferber President, Residential Business
N. David Bleisch Senior Vice President, Chief Legal Officer and Corporate Secretary
Anita Graham Former Senior Vice President and Chief Human Resources and Administrative Officer
Kathryn Mikells Former Senior Vice President and Chief Financial Officer
The Compensation Discussion and Analysis also describes
compensation programs that apply to executives, other than the
NEOs, that report directly to the CEO (collectively, with the NEOs, the
“Executive Officers” of the Company).
Executive Summary
The Company is the largest provider of electronic security, interactive
home and business automation and related monitoring services in the
United States and Canada, serving approximately 6.5 million
residential and small business customers. ADT has one of the most
trusted and well-known brands in the security industry. We deliver an
integrated customer experience by maintaining the industry’s largest
sales, installation and service field force as well as a robust monitoring
network, all backed by the support of approximately 17,000
employees. Our broad and pioneering set of products and services,
including interactive home and business solutions and home health
services, meet a range of customer needs for today’s active and
increasingly mobile lifestyles. We believe we are well positioned to
continue to lead the large and growing residential and small business
security market, and that our demonstrated expertise and established
footprint will help us to become a leader in the evolving market for
integrated security, home health monitoring, lifestyle and business
productivity solutions.
Fiscal Year 2013 Business Highlights
Fiscal Year 2013 was a year of considerable change for ADT.
Following the Company’s separation from Tyco on September 28,
2012, we focused on redefining ourselves and building our business
as a stand-alone public company. Our most significant achievements
in fiscal year 2013 included:
•We added over 1.1 million new customers on a gross basis and
maintained our market share in the face of increased competition;
•We more than doubled recurring monthly revenue growth in our
Small Business unit;
•The percentage of new Residential and Small Business customers
who selected our interactive ADT Pulse offering (our “Pulse Take
Rate”), as opposed to a traditional home or small business
security system, grew to 32% in the fourth quarter, and to 26% for
the year, up from 10% for fiscal year 2012;
•We added 117,000 customers via the acquisition of Devcon
Security Holdings, Inc.; and
•We repurchased 28 million of our outstanding shares and paid out
$112 million in dividends during fiscal year 2013.
Overview of Compensation Programs
The Company’s compensation programs are designed to promote
long-term value creation for stockholders and support the overall
Company strategy and objectives by: (1) linking total compensation to
defined short-term and long-term performance goals which are
aligned with the interests of stockholders; (2) attracting and retaining
key executives through competitive total compensation opportunities;
and (3) motivating appropriate risk taking without encouraging or
rewarding excessive risk.
Compensation for the NEOs is weighted toward variable
compensation (both annual and long-term incentives), where actual
amounts earned are based upon both Company and individual
performance. NEO compensation is reviewed annually by the
Compensation Committee (and, in the case of the CEO, by the
independent members of the Board of Directors) to ensure alignment
with the Company’s compensation objectives and market practice.
22 The ADT Corporation 2014 Proxy Statement
PROXY STATEMENT