Priceline 2010 Annual Report Download - page 6

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PRICELINE.COM INCORPORATED
PROXY STATEMENT
TABLE OF CONTENTS
PROXY STATEMENT
General ....................................................................................................................................................... 5
Voting Rights and Outstanding Shares; Approval ...................................................................................... 5
Revocability of Proxies ............................................................................................................................... 6
Internet Availability of Proxy Materials and Annual Report ...................................................................... 7
Solicitation .................................................................................................................................................. 7
How to Attend the Annual Meeting ............................................................................................................ 7
PROPOSAL 1: ELECTION OF DIRECTORS ........................................................................................................ 8
CORPORATE GOVERNANCE AND BOARD MATTERS ................................................................................... 14
The Board of Directors ............................................................................................................................... 14
Corporate Governance ................................................................................................................................ 14
Committees of the Board of Directors ........................................................................................................ 16
Leadership Structure ................................................................................................................................... 18
Board’s Oversight of Risk .......................................................................................................................... 18
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT .............................. 20
Section 16(a) Beneficial Ownership Reporting Compliance ...................................................................... 21
COMPENSATION DISCUSSION AND ANALYSIS .............................................................................................. 22
Executive Compensation Program Philosophy and Objectives .................................................................. 22
The Role of Management ........................................................................................................................... 23
The Role of the Compensation Consultant ................................................................................................. 23
Benchmarking ............................................................................................................................................. 24
Components of Executive Compensation in 2010 ...................................................................................... 25
Other Matters .............................................................................................................................................. 32
Compensation Committee Report ............................................................................................................... 35
COMPENSATION OF NAMED EXECUTIVE OFFICERS .................................................................................... 36
Summary Compensation Table ................................................................................................................... 36
Grants of Plan-Based Awards Table ........................................................................................................... 38
Outstanding Equity Awards at 2010 Fiscal Year-End Table ...................................................................... 39
Option Exercises and Stock Vested Table .................................................................................................. 41
EMPLOYMENT CONTRACTS, TERMINATION OF EMPLOYMENT AND
CHANGE-OF-CONTROL ARRANGEMENTS ........................................................................................ 42
POTENTIAL PAYMENTS UPON A CHANGE OF CONTROL AND/OR TERMINATION ............................... 50
EQUITY PLANS ....................................................................................................................................................... 53
2010 NON-EMPLOYEE DIRECTOR COMPENSATION AND BENEFITS ......................................................... 54
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION ......................................... 56
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS ....................................................................... 57
PROPOSAL 2: RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM ............................................................................................................................................ 59
REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS ..................................................... 60
AUDITOR INDEPENDENCE .................................................................................................................................. 62
PROPOSAL 3: ADVISORY VOTE ON EXECUTIVE COMPENSATION ........................................................... 63
PROPOSAL 4: ADVISORY VOTE ON THE FREQUENCY OF AN ADVISORY VOTE ON EXECUTIVE
COMPENSATION .................................................................................................................................................... 63
PROPOSAL 5: STOCKHOLDER PROPOSAL – ACTION BY WRITTEN CONSENT ....................................... 64
STOCKHOLDER PROPOSALS ............................................................................................................................... 67
OTHER MATTERS .................................................................................................................................................. 67
DIRECTIONS ........................................................................................................................................................... 68