Cincinnati Bell 2008 Annual Report Download - page 61

Long-Term Incentives:
•Mr. Wojtaszek was granted a nonqualified stock option for 200,000 common shares upon his
commencement of employment on August 1, 2008. For the 2009 fiscal year, Mr. Wojtaszek was granted
264,728 performance units (at target) with respect to the 2009-2011 performance period in January 2009,
a nonqualified stock option for 324,324 common shares in December 2008, and another 76,989
nonqualified stock options and 130,363 SARs in January 2009. Mr. Wojtaszek’s total 2009 opportunity is
equal to 116% of the peer group benchmark.
•For the 2008 fiscal year, Mr. Keating was granted 38,201 performance units (at target) with respect to the
2008-2010 performance period in January 2008 and a nonqualified stock option for 50,000 common
shares in December 2007. For the 2009 fiscal year, Mr. Keating was granted 73,370 performance units (at
target) with respect to the 2009-2011 performance period in January 2009, a nonqualified stock option for
100,000 common shares in December 2008 and another 16,826 nonqualified stock options and 28,492
SARs in January 2009. Mr. Keating’s total 2008 opportunity was equal to 122% of the benchmark and his
total 2009 opportunity is equal to 107% of the peer group benchmark.
•For the 2008 fiscal year, Mr. Ross was granted 191,007 performance units (at target) with respect to the
2008-2010 performance period in January 2008 and a nonqualified stock option for 250,000 common
shares in December 2007. For the 2009 fiscal year, Mr. Ross was granted 265,719 performance units (at
target) with respect to the 2009-2011 performance period in January 2009, a nonqualified stock option for
362,162 common shares in December 2008 and another 60,938 nonqualified stock options and 103,185
SARs in January 2009. Mr. Ross’s total 2008 opportunity was equal to 184% of the benchmark and his
total 2009 opportunity is equal to 77% of the peer group benchmark.
•For the 2008 fiscal year, Mr. Wilson was granted 63,669 performance units (at target) with respect to the
2008-2010 performance period in January 2008 and a nonqualified stock option for 100,000 common
shares in December 2007. For the 2009 fiscal year, Mr. Wilson was granted 201,272 performance units (at
target) with respect to the 2009-2011 performance period in January 2009, a nonqualified stock option for
210,810 common shares in December 2008 and another 74,495 nonqualified stock options and 126,140
SARs in January 2009. Mr. Wilson’s total 2008 opportunity was equal to 119% of the benchmark and his
total 2009 opportunity is equal to 106% of the peer group benchmark.
The Compensation Committee then met in executive session with only its independent outside consultant
present to determine the amount of Mr. Cassidy’s compensation elements for 2009. The consultant presented the
market pay levels for each component of pay and responded to questions asked by the Compensation Committee.
The Compensation Committee, following discussions and deliberations, prepared and presented its
recommendations for approval by the full Board, which recommendations were approved.
2009 Chief Executive Officer Compensation
The Compensation Committee focused its deliberations primarily on the following factors in determining
Mr. Cassidy’s compensation:
•The objectives of the Company’s compensation programs;
•The compensation of other chief executive officers in the two study company peer groups;
•The overall results achieved by the Company in a highly competitive market environment; and
•Mr. Cassidy’s personal performance, including succession planning and his personal involvement in
community affairs in the greater Cincinnati area.
As a result of the data and deliberations, the Compensation Committee recommended, and the full Board
approved, the following 2009 compensation for Mr. Cassidy:
•Base Salary — Mr. Cassidy’s salary remained unchanged at $645,000, which is 82% of the peer group
benchmark.
•Annual Bonus Target — Mr. Cassidy’s annual target bonus remains at 150% of base salary, which is
127% of the peer group benchmark. Mr. Cassidy became CEO in July 2003 and his salary was adjusted
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Proxy Statement