Time Warner Cable 2015 Annual Report Download - page 40

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2014 Operational Performance Incentive. Management proposed a broad set of metrics for the executive
officers, including the named executive officers, under the 2014 OPI, which together accounted for 50% of the
total 2014 AIP opportunity. These metrics were intended to motivate the named executive officers to drive
performance in four key performance areas, each carrying equal weight of 25% under the OPI (i.e., 12.5% of the
total 2014 AIP opportunity): (i) residential customer experience, (ii) plant reliability and expansion,
(iii) completion of the upgrades in key cities designated as “TWC Maxx” and (iv) financial and operating results.
The key metrics within each of these areas are set out below.
Operational Performance Incentive
for Named Executive Officers
(50% of 2014 AIP Opportunity)
• Increase Revenue
• Increase Residential
Customer
Relationships
• Go “all digital” in
Select Locations
• Improve Plant
Performance in Key
Cities
• Introduce Product
Enhancements
• Reach More
Businesses and
Homes
• Improve Plant
Performance for
Businesses and
Homes
• Light More Cell
Towers
• Reduce Customer Care
Calls
• Reduce Trouble Call
Rate
Residential
Customer
Experience
(25%)
Plant
Reliability &
Expansion
(25%)
Financial &
Operating
Results
(25%)
Deploy TWC
Maxx in Key
Cities
(25%)
In adopting Management’s proposal for the OPI portion of the 2014 AIP, the Compensation Committee
believed that the four principal performance areas and their underlying components would be reflective of the
Company’s success in achieving several key objectives: enhancing the customer experience, investing in plant
and products to revitalize its residential business, continuing to expand its business services operations, and
driving sustainable top-line growth. While each metric within the performance areas was assigned a weighting
and a threshold and maximum to help evaluate the level of accomplishment, none of the metrics was in itself
material to the ultimate performance evaluation.
• The Residential Customer Experience metrics of reducing call volume and “trouble calls” (i.e., truck
rolls following a customer interaction) were thought to be important indicators of whether TWC
customers are generally having a positive experience.
• The Plant Reliability and Expansion metrics were thought to support the Company’s objective of
efficiently and economically investing in its physical infrastructure to ensure a quality customer
experience and support growth in its business service and residential segments.
• The TWC Maxx deployment metrics were selected to support the Company’s roll out of an enhanced
residential customer experience, which is also intended to provide the Company with a meaningful
competitive advantage in key operating areas.
• The Financial and Operating Results selected by the Committee were thought to be important indicators
of business performance: residential customer relationships to gauge the Company’s success in
attracting and retaining customers and revenue to gauge the Company’s success in maintaining pricing
discipline.
34