Vistaprint 2012 Annual Report Download - page 131

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If Vistaprint’s adjusted EPS is greater than or equal to the EPS low goal but less than the EPS upper goal for
a performance period, then the percentage payout for that performance period is equal to:
‰the payout threshold percentage for the highest EPS target achieved with respect to the applicable
performance period, plus
‰a number calculated as follows: (A) a percentage equal to a fraction, the numerator of which equals the
amount by which adjusted EPS exceeded such applicable EPS goal and the denominator of which equals the
difference between the next highest EPS goal that was not achieved and the highest EPS goal achieved,
multiplied by (B) the difference between the payout threshold percentage for the next highest EPS goal that
was not achieved and the payout threshold percentage for the highest EPS goal achieved.
Fiscal 2012 Long-Term Cash Incentives
Our adjusted EPS for fiscal 2012 was $1.23, which compared to the fiscal 2012 performance goals of the
long-term incentive cash awards granted to our executive officers as follows:
2010-2013 Awards Granted in Fiscal 2010. Under the long-term cash incentive awards that the
Compensation Committee granted in fiscal 2010, each named executive officer is eligible to receive 25% of his
or her total award for each of our fiscal years ending June 30, 2010, 2011, 2012 and 2013 based on our achieve-
ment of EPS goals for each fiscal year. The EPS goals for the 2010-2013 awards were determined before we
launched our five-year growth strategy in July 2011, which includes increased investments in our business that
we expect to result in lower EPS in the earlier fiscal years of the strategy. The Compensation Committee decided
not to reduce the fiscal 2012 EPS goals in the 2010-2013 awards to accommodate the five-year strategy. Accord-
ingly, because our actual adjusted fiscal 2012 EPS was below our low EPS goal for fiscal 2012 of $1.61 under
these 2010-2013 awards, the executive officers were not eligible for any payment for 2012 under the awards.
2011-2014 Awards Granted in Fiscal 2011. Under the long-term cash incentive awards that the
Compensation Committee granted in fiscal 2011, each named executive officer is eligible to receive 25% of his
or her total award for each of our fiscal years ending June 30, 2011, 2012, 2013 and 2014 based on our achieve-
ment of EPS goals for each fiscal year. The EPS goals for the 2011-2014 awards were determined before we
launched our five-year growth strategy in July 2011, which includes increased investments in our business that
we expect to result in lower EPS in the earlier fiscal years of the strategy. The Compensation Committee decided
not to reduce the fiscal 2012 EPS goals in the 2011-2014 awards to accommodate the five-year strategy. Accord-
ingly, because our actual adjusted fiscal 2012 EPS was below our low EPS goal for fiscal 2012 of $1.84 under
these 2011-2014 awards, the executive officers were not eligible for any payment for 2012 under the awards.
2012-2015 Awards Granted in Fiscal 2012. Under the long-term cash incentive awards that the
Compensation Committee granted in fiscal 2012, each named executive officer is eligible to receive 25% of his
or her total award for each of our fiscal years ending June 30, 2012, 2013, 2014, and 2015 based on our
achievement of EPS goals for each fiscal year. As set forth in the 2012-2015 award agreements with our execu-
tive officers, our EPS goals were as follows:
‰Our low EPS goal for fiscal 2012 was $1.08, which would have resulted in a payout of 50% of the named
executive officers’ targets for that year;
‰Our medium EPS goal for fiscal 2012 was $1.20, which would have resulted in a payout of 100% of the
named executive officers’ targets for that year; and
‰Our upper EPS goal was $1.32, which would have resulted in a payout of 130% of the named executive
officers’ targets for that year.
Proxy Statement
31