TripAdvisor 2014 Annual Report Download - page 139

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17
COMPENSATION DISCUSSION AND ANALYSIS
Overview
This Compensation Discussion and Analysis describes TripAdvisor’s executive compensation program as it relates to our
“named executive officers” as determined as of December 31, 2014 pursuant to SEC rules. As of December 31, 2014, our “named
executive officers” were those individuals listed below. On April 2, 2015, Ms. Bradley informed us of her intention to resign from the
Company.
Name Position
Stephen Kaufer President and Chief Executive Officer
Julie M.B. Bradley Senior Vice President, Chief Financial Officer, Chief
Accounting Officer and Treasurer
Seth J. Kalvert Senior Vice President, General Counsel and Secretary
Dermot M. Halpin President, Vacation Rentals
Barrie Seidenberg Chief Executive Officer, Attractions
The Board of Directors has a Compensation Committee and a Section 16 Committee that together have primary responsibility
for establishing the compensation of our named executive officers. In this Proxy Statement, we refer to the Compensation Committee
and Section 16 Committee jointly as the “Compensation Committees.”
Executive Summary and 2014 Business Highlights
x We have a pay for performance philosophy that guides all aspects of our compensation decisions:
o Annual salary increases are tied to individual performance and business performance over the previous fiscal year.
o Annual incentive compensation is structured so that payouts are tied to the achievement of financial targets and
require year over year improvement in revenue and share price.
o Long-term incentive compensation is structured so that target equity award values are linked to individual and
business performance, while realized values are tied to the Company’s share price.
x The interests of our named executive officers are aligned with those of our stockholders through the granting of a
substantial portion of compensation in equity awards with multi-year vesting requirements.
x Below are some highlights for our business and financial results for 2014:
o TripAdvisor’s travel community reached more than 315 million monthly unique visitors during the year ended
December 31, 2014, including nearly 50% via mobile devices (tablet and smartphone). With approximately 11% of
the world’s monthly unique visitors in online travel at the end of 2014, we remain the largest travel website in the
world.
o TripAdvisor reached nearly 175 million mobile app downloads, up 110% year over year – including downloads of
TripAdvisor, TripAdvisor City Guides, JetSetter, GateGuru and SeatGuru. Also, the core TripAdvisor app has been
downloaded more than 155 million times and had its sixth straight fiscal quarter of greater than 100% growth.
o TripAdvisor’s total revenue increased by 32% over the prior year and Adjusted EBITDA increased by 23% over the
prior year.
x TripAdvisor achieved 99% of its revenue plan and 98% of its EBITDA plan.
Fiscal 2014 was a solid year for TripAdvisor with the Company achieving record revenue, adjusted EBITDA and earnings per
share and substantially achieving its annual operating plan, while at the same time consummating several strategic acquisitions as well
as launching several important initiatives. As a result, the Company generally funded its annual cash bonus programs at
approximately 96% of target.