Time Warner Cable 2015 Annual Report Download - page 33

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The Company’s Executive Compensation Structure Reflects its Key Compensation Principles
The core elements of the Company’s executive compensation program are intended to focus the Company’s
named executive officers on different but complementary aspects of the Company’s financial, operational and
strategic goals:
•Annual Base Salary: The base salary paid to the Company’s named executive officers
and other employees is intended to focus the recipient on his or her day-to-day duties.
Consistency
between
Principles
and Design
•Short-Term Performance-Based Incentive: The Company’s annual cash bonus
program is designed to motivate the executive officers to meet and exceed Company
operating and financial goals and, in the case of other employees, to make individual
contributions to the Company’s strategic and operational objectives. For additional
information, see “—2014 Short-Term Incentive Program—Annual Cash Bonus.”
•Long-Term Performance-Based Incentive: The Company’s LTI program is designed
to retain participants and motivate them to meet and exceed the Company’s goals that
are likely to result in long-term value creation for stockholders. For additional
information, including about the performance-based vesting conditions, see “—2014
Long-Term Incentive Program—Equity-Based Awards.”
In establishing its executive compensation programs, the Company is guided by the following key
principles:
Principle Compensation Goal Compensation Practice
Pay for performance Provide an appropriate level of
performance-based compensation
tied to the achievement of
Company financial and
operational performance goals.
The compensation structure has
a mix of base salary and variable
or performance-based awards.
For 2014, 89% of the CEO’s
target total direct compensation
and at least 75% of each of the
other named executive officers’
target total direct compensation
was variable and performance-
based. As in prior years, 60% of
each executive officer’s 2014
annual LTI awards were subject
to a financial performance-based
vesting condition.
Align executives’ interests with
stockholders’
Deliver equity compensation to
align executives’ interests with
those of stockholders.
Equity awards comprised 50%
or more of each executive
officer’s target total direct
compensation. The 2014 annual
LTI program consisted of
Company RSUs that vest over a
period of time and a portion of
which are generally contingent
on Company performance. In
addition, each of the Company’s
senior officers, including the
named executive officers, is
subject to stock ownership
requirements and compensation
recoupment.
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