Texas Instruments 2015 Annual Report Download - page 95

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 89
PROXY STATEMENT
The committee set the Comparator Group in July 2013 for the base salary and equity compensation decisions it made in January 2014.
For a discussion of the factors considered by the committee in setting the Comparator Group, please see page 72 of the company’s
2014 proxy statement.
In July 2014, the committee conducted its regular review of the Comparator Group in terms of industry, revenue and market
capitalization. With the advice of its compensation consultant, the committee determined that the group was still comparable overall
to TI. Accordingly, it used the same Comparator Group for the bonus decisions in January 2015 relating to 2014 performance as it
used to set salary and equity compensation in January 2014. The table below compares the group to TI in terms of revenue and
market capitalization.
Company
Revenue
($ billion) *
Market Cap
($ billion) *
Intel Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.0 174.9
QUALCOMM Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.5 123.3
Emerson Electric Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.5 42.6
EMC Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.1 60.4
Xerox Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.1 15.6
eBay Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.5 69.6
Western Digital Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.3 25.5
TE Connectivity Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.1 25.5
Seagate Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.0 21.6
Computer Sciences Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.9 8.8
Applied Materials, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.1 30.2
Broadcom Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3 25.4
Motorola Solutions, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.6 16.0
Analog Devices, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9 17.3
Median . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.7 25.5
Texas Instruments Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.0 56.3
* Trailing four-quarter revenue as reported by Thomson Reuters on February 2, 2015. Market capitalization as of December 31, 2014.
Analysis of compensation determinations for 2014
Total compensation
Before finalizing the compensation of the executive officers, the committee reviewed all elements of compensation. The information
included total cash compensation (salary, profit sharing and projected bonus), the grant date fair value of equity compensation, the
impact that proposed compensation would have on other compensation elements such as pension, and a summary of benefits that the
executives would receive under various termination scenarios. The review enabled the committee to see how various compensation
elements relate to one another and what impact its decisions would have on the total earnings opportunity of the executives. In
assessing the information, the committee did not target a specific level of total compensation or use a formula to allocate compensation
among the various elements. Instead, it used its judgment in assessing whether the total was consistent with the objectives of the
program. Based on this review, the committee determined that the level of compensation was appropriate.
Base salary
The committee set the 2014 rate of base salary for the named executive officers as follows:
Officer 2014 Annual Rate
Change from
2013 Annual Rate
R. K. Templeton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,110,000 3.3%
K. P. March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 630,000 3.3%
B. T. Crutcher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 775,000 * 14.8%
S. A. Anderson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 550,000 * 20.9%
K. J. Ritchie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 650,000 4.0%
* 2014 annual rate for Mr. Crutcher and Mr. Anderson includes salary increase approved in June 2014.