First Data 2007 Annual Report Download - page 158

Corporate and the applicable business unit performance for 2007 resulted in a calculated payout range of 90% to 105% of target for the NEOs. The
Committee then considered other relevant individual performance factors such as the successful transaction closing of the merger, restructuring, cost reduction
efforts, and the implementation of strategic programs. As such, Ms. Patmore and Mr. Boucher received awards of 100% and 105% of target, respectively. The
positive individual adjustment to Mr. Labry's SEIP payout was made in recognition of his expanded role managing First Data's domestic business and his
leadership of the successful integration of multiple lines of business into a single domestic business.
Determination of 2008 Targets
As part of the compensation review conducted by the post-merger Committee and the new CEO described in the Base Salary discussion, the following bonus
targets have been established for NEOs for 2008. A significant target increase was given to Mr. Labry in recognition of his increased scope as leader of the
newly consolidated First Data domestic business.
2007 SEIP
Bonus Target
2008 SEIP
Bonus Target
Michael Capellas n/a $ 1,800,000
Kimberly Patmore $ 600,000 $ 600,000
Peter Boucher $ 500,000 $ 525,000
Edward A. Labry III $ 500,000 $ 937,500
Financial Metric Changes for 2008
In 2008, executive officer payouts under the SEIP will be fully based on company performance as measured against a single company-wide EBITDA target.
The SEIP financial metric has been changed from 2007 to 2008 to better align with the Company's financial objectives as a closely held company, maximize
company-wide value creation and promote teamwork and collaboration across business units and geographies. To further promote teamwork and a focus on
company performance, it is anticipated that executive officer bonuses will all be paid at the same percent of target for 2008. However, the Committee does
retain the right to adjust future executive officer payouts within the existing plan limits.
These changes in the plan metrics and mechanics for 2008 are intended to maximize the alignment between executive officer and shareholder interests and to
ensure a focus on the Company's strategic priorities which are aimed at generating overall value for the company.
EQUITY
The objective of First Data's equity compensation programs is to align long term compensation opportunities with the interests of First Data's shareholders.
Equity compensation focuses on long-term First Data financial and stock performance.
Under First Data's pre-merger 2002 Long-Term Incentive Plan ("LTIP"), the Committee could award stock options, restricted stock, restricted stock units and
stock appreciation rights. However, stock options and restricted stock and restricted stock units were the only long term incentive vehicles that were utilized.
In 2007, executive officers were granted 70% of their equity value as stock options with four year ratable vesting and 30% of their equity value as restricted
stock with three year ratable vesting. This combination was arrived at because it accomplishes multiple objectives:
• consistency with market trends away from pure option grants and towards a mix of options and restricted shares;
• allows First Data to better manage costs under Financial Accounting Standard 123R, "Share-Based Payment" ("SFAS 123R");
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