ADT 2014 Annual Report Download - page 32

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COMPENSATION OF EXECUTIVE OFFICERS—CONTINUED
The table below summarizes the components of our executive compensation program and how each component aligns with the objective of
creating long-term value for our stockholders:
Component What it Rewards How it Aligns with Our Objectives
Base Salary
•Sustained high level of performance
•Demonstrated success in meeting or
exceeding key objectives
•Experience, skills and abilities key to the
long-term success of the business
•Competitive base salaries allow us to
attract and retain top talent
•Merit-based salary increases are aligned
to our pay-for-performance philosophy
Annual Incentive Compensation
•Company performance against key
financial goals and objectives which are
aligned to the interests of stockholders
•Performance against individual goals and
objectives which are aligned to the
delivery of key operational and financial
priorities
•Competitive annual incentive targets
allow us to attract and retain top talent
•Plan design, with annual awards ranging
from 0% to 200% of target based upon
performance against financial metrics
and individual objectives, aligns to the
interests of stockholders by linking
payouts to those measures with the
most significant impact on the long-term
success of the business
Long-Term Incentive Compensation
•Performance Share Units
•Stock Options
•Restricted Stock Units
•Increase in stock price
•Meeting or exceeding performance
targets
•Relative Total Shareholder Return (TSR)
•Continued service
•Competitive annual LTI targets allow us
to attract and retain top talent
•Most significant component of
compensation aligns the interests of our
executives with those of our
stockholders by linking substantial
portion of executives’ total pay
opportunity to stock price performance,
both in the absolute and relative to the
broader market
•Variety of LTI vehicles balances focus on
sustainable long-term stockholder
interests, appropriate risk-taking and
retention objectives
•Vesting parameters support long-term
focus and retention
•Equity-based LTI assists executives in
meeting ownership guidelines
Benefits
•Executives’ contributions toward
retirement savings
•Behaviors consistent with a healthy
lifestyle
•Promotes the health, wellness and
financial well-being of our executives
We believe that executives with higher levels of responsibility and a
greater ability to influence the results of the Company should have a
greater percentage of their total compensation in the form of variable
compensation, which is dependent upon performance. As a result,
compensation for our NEOs is more heavily weighted toward variable
compensation (both annual and long-term incentives), where actual
amounts earned are based upon both Company and individual
performance.
24 The ADT Corporation 2015 Proxy Statement
PROXY STATEMENT