Cincinnati Bell 2011 Annual Report Download - page 53

COMPENSATION DISCUSSION AND ANALYSIS
Introduction
The material on the following pages sets forth an overview and explanation of the Company’s executive
compensation philosophy and how it is put into practice. The Company and the Compensation Committee both
believe that the central objective of an effective compensation practice is to provide an appropriate and
competitive mixture of base pay (the “fixed cost” of the program) and incentive compensation programs that
promote achievement of current year goals and longer-term business strategies. The Company and the
Compensation Committee believe the program’s incentives drive appropriate business behavior without inducing
its executives to take undue business risks.
The Company believes that its compensation program, taken as a whole, has been effective in attracting and
retaining key executive talent, driving attainment of its annual revenue and Adjusted EBITDA goals, delivering
sustained cash flow performance over multiple years during a period of great economic disruption and industry
competition, and aligning executive long-term incentive rewards with the interests of shareholders. The creation
of the Data Center Performance Plan in 2010 should provide a significant incentive to drive transformative
growth in the Company’s Data Center Colocation segment over the next several years. See additional details of
the Data Center Performance Plan beginning on page 51.
The Company applies its compensation policies and related decision-making processes to the Chief
Executive Officer on the same basis as to the other named executive officers. Differences in pay levels for the
Chief Executive Officer relative to the other named executive officers is reflective of the additional
responsibility, knowledge, strategic judgment and leadership required of the Chief Executive Officer as
compared to the other named executive officers.
The Company’s 2011 named executive officers (“NEOs”) are:
John F. Cassidy ............................ President and Chief Executive Officer
Kurt A. Freyberger .......................... Chief Financial Officer since August 5, 2011
Theodore H. Torbeck ........................ President and General Manager, Cincinnati Bell
Communications Group
Gary J. Wojtaszek .......................... President of CyrusOne Inc. since August 5,
2011, former Chief Financial Officer of the
Company
Christopher J. Wilson ........................ Vice President, General Counsel and Secretary
This Compensation Discussion and Analysis (the “CD&A”) discusses in more detail below the elements of
the executive compensation program and the reasons why the Compensation Committee selected those particular
elements, the performance goals under certain of those elements, the compensation that the executives might
earn, and how each element encourages the Company’s achievement of its business objectives and strategy.
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Proxy Statement