Time Warner Cable 2015 Annual Report Download - page 43

OPI “score” of 116%, based on the unadjusted straight-line interpolation of each applicable component and the
appropriately weighted aggregate of each of the four principal areas, as shown in the table below. This
determination reflected the Compensation Committee’s view of the Company’s accomplishments during the year
(as outlined above and under “2014 Highlights: Company Performance”) to set the foundation for achievements
under the long-term plan and in light of the difficult competitive environment and the distractions of the Comcast
merger regulatory review process and planning for post-closing integration.
The table below sets out each of the threshold/maximum interpolated scores for each of the Profit
Participation Program and the OPI components of the 2014 annual bonus program and the ultimate scores
assigned by the Compensation Committee for use in the bonus determinations.
2014 Company Performance
Percentage
Allocation X
Threshold/
Maximum
Interpolation =
Final
Score
Profit Participation Program
(50% of 2014 annual bonus target payment) ........... 50% 96% 48%
Operational Performance Incentive
(50% of 2014 annual bonus target payment)
Residential customer experience .................. 12.5% 124% 15.5%
Plant reliability and expansion .................... 12.5% 122% 15.25%
TWC Maxx deployment ........................ 12.5% 117% 14.5%
Financial and operating performance .............. 12.5% 102% 12.75%
Total weighted aggregate score ................... 50% 116% 58%
Weighted Aggregate Annual Bonus Score ............. 100% 106% 106%
2014 Annual Incentive Plan and Supplemental Bonus Payments.
The table below indicates the total amount awarded to each named executive officer under the 2014 annual
bonus programs, including the (a) 2014 AIP and (b) Supplemental Bonus Program, based on a 106% overall
performance score, alongside each officer’s aggregate annual bonus target under the 2014 AIP and Supplemental
Bonus Program. The named executive officers were paid a portion of these annual bonus awards before the end
of the first quarter of 2015 and, consistent with the terms of the Supplemental Bonus Program, were paid the
balance in April 2015 as a result of the abandonment of the Comcast merger. These bonus amounts are also
included under the heading “Non-Equity Incentive Plan Compensation” in the Summary Compensation Table
below.
Executive Officer
2014
Annual Bonus Award Target
2014 AIP and
Supplemental
Bonus(2) 2014 AIP
Supplemental
Bonus
Program
Total 2014
Annual Bonus
Award(1)
Robert D. Marcus ................ $ 5,300,000 $ 2,650,000 $ 7,950,000 $ 7,500,000
Dinesh C. Jain ................... $ 2,650,000 $ 1,325,000 $ 3,975,000 $ 3,750,000
Arthur T. Minson, Jr. .............. $ 1,431,000 $ 715,500 $ 2,146,500 $ 2,025,000
Marc Lawrence-Apfelbaum ........ $ 689,000 $ 344,500 $ 1,033,500 $ 975,000
Peter C. Stern .................... $ 662,500 $ 331,250 $ 993,750 $ 937,500
(1) Aggregate of amounts awarded under the 2014 AIP and Supplemental Bonus Program.
(2) The 2014 AIP bonus target for each of the named executive officers is set forth in the table above titled “2014
Target Total Direct Compensation.” The Supplemental Bonus Program effectively increased each AIP participant’s
bonus target by 50%.
Section 162(m) Compliance. In order to structure the short-term incentive awards as potentially
deductible amounts under Section 162(m) of the Internal Revenue Code (“Section 162(m)”), additional
conditions and limitations on awards were imposed under the Time Warner Cable Inc. 2012 Annual Bonus Plan
(the “162(m) Bonus Plan”), which was approved by the Company’s stockholders in May 2012. Pursuant to the
162(m) Bonus Plan, a subcommittee of the Compensation Committee, whose members are “outside directors” as
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