Cincinnati Bell 2015 Annual Report Download - page 37

The following chart summarizes the key elements of our compensation program, which are
discussed in more detail later in the CD&A.
Component Purpose Key Characteristics 2015 Key Actions
Base Salary •Allows Company to
attract and retain
executives
•Recognizes individual
performance through merit
increases
•Recognizes individual
work experience and level
of responsibility
•Fixed annual cash
compensation
•Increases primarily
driven by individual
performance and by
market positioning
•Used to calculate other
components of
compensation
•With the exception of
Messrs. Simpson and
Wilson, the NEOs
received increases in
January
•Mr. Simpson received a
merit increase in February
and an additional increase
in November to reflect his
increased responsibilities
and for retention purposes
Annual
Incentives
•Motivate achievement of
Company annual financial
goals and strategic
objectives
•Motivate achievement of
individual annual
performance goals
•Performance-based
annual cash incentive
compensation
•Bonus target set as a
percentage of base salary
•The revenue and
Adjusted EBITDA
performance metrics,
which affect 80% of
incentive payout, were
attained at approximately
103% of target. Together
with the individual
performance portion, NEO
total annual incentive
payouts ranged from
113% to 123% of target
Non-qualified
Stock Options
and Stock
Appreciation
Rights (“SARs”)
•Align executive interests
with shareholder interests
•Motivate achievement of
Company long-term
financial goals and
strategic objectives
•Facilitate executive
equity ownership thereby
further aligning executive
and shareholder interests
•Performance-based
long-term equity incentive
compensation
•Vest over three-year
period based on continued
service and the
achievement of
performance goals
•Does not have value
unless stock price
increases following date of
grant
•No stock options or stock
appreciation rights were
granted to any NEO in
2015
Performance
Share and Unit
Awards
•Motivate achievement of
Company long-term
financial goals and
strategic objectives
•Facilitate executive
equity ownership thereby
further aligning executive
and shareholder interests
•Performance-based
long-term equity incentive
compensation
•Granted annually with
cumulative three-year
performance cycles
•Grants were made in the
form of performance-
based shares or units
•Beginning with the 2014
grant, a single payout will
be made at the successful
completion of the 3-year
performance period
The Company also provides certain retirement benefits and post-termination compensation to the
NEOs, as described in more detail later in this CD&A.
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Proxy Statement