MoneyGram 2015 Annual Report Download - page 37

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Table of Contents
CompensationandBenefits
Compensation and benefits include salaries and benefits, management incentive programs, related payroll taxes and other employee related costs. The following
table is a summary of the change in compensation and benefits from the respective prior year for the years ended December 31 :
(Amounts in millions) 2015
2014
For the period ended December 31 $ 275.0
$ 264.9
Change resulting from:
Salaries, related payroll taxes and incentive compensation 35.9
(9.0)
Impact from changes in exchange rates (18.8)
(0.1)
Employee stock-based compensation 14.2
(5.8)
Pension settlement charges 14.0
—
Reorganization and restructuring (9.1)
18.5
Compliance enhancement program (1.5)
2.8
Other employee benefits (0.6)
3.7
For the period ended December 31 $ 309.1
$ 275.0
In 2015 , compensation and benefits expense increased partially due to an increase in salaries, related payroll taxes and incentive compensation mainly due to an
increase in expenses related to performance bonus plan in 2015 compared to 2014 . The increase is also attributed to an increase in employee stock-based
compensation due to the reversal of performance-based restricted stock units in 2014 and settlement charges from the voluntary pension buyout. These increases
were partially offset by the impact of the strengthening U.S. dollar and the wind down of the 2014 Global Transformation Program reorganization and restructuring
activities.
In 2014 , compensation and benefits expense increased primarily due to the 2014 Global Transformation Program, including increased costs relating to our
reorganization and restructuring activities and our compliance enhancement program. The increase in costs related to the 2014 Global Transformation Program was
$22.6 million , partially offset by expenses of $1.3 million related to the 2010 Global Transformation Initiative that concluded in 2013. The costs related to the
2014 Global Transformation Program primarily consisted of severance costs related to reorganization and restructuring activities and increased headcount for the
compliance enhancement program. Salaries and related payroll taxes increased due to increased headcount, ordinary salary increases and changing employee base
as we invested in our sales, market development and compliance functions. The increase in compensation and benefits expense was slightly offset by decreased
stock-based compensation and performance incentives.
TransactionandOperationsSupport
Transaction and operations support primarily includes marketing, professional fees and other outside services, telecommunications, agent support costs, including
forms related to our products, non-compensation employee costs, including training, travel and relocation costs, bank charges and the impact of foreign exchange
rate movements on our monetary transactions, assets and liabilities denominated in a currency other than the U.S. dollar.
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