Vistaprint 2013 Annual Report Download - page 131

The Revenue Percentage and EPS Percentage were calculated by dividing the actual amounts for the fiscal
year by the goals determined by the Compensation Committee.
‰If either (1) Vistaprint’s actual constant currency revenue for fiscal 2013 were less than 92.5% of the goal,
or (2) actual EPS for fiscal 2013 were less than 80% of the goal, then the total annual cash incentive
payout would be zero even if the other goal were achieved.
‰The fiscal 2013 payout percentage was capped at a maximum of 200%.
Fiscal 2013 Annual Cash Incentives
For the fiscal 2013 annual cash incentive awards, Vistaprint’s constant currency revenue was $1.152 billion,
which fell short of our constant currency revenue goal of $1.225 billion, and its EPS was $0.854, which was a
significant overachievement of our EPS goal of $0.56 - $0.64 (calculated using $0.60 as the target). Based on the
90/10 weighting of these two goals and in accordance with the formula set forth above, this level of achievement
yielded a payout percentage of 90.3% of the executives’ targets.
The following table sets forth the target and actual annual cash incentives for our named executive officers
for fiscal 2013. The Compensation Committee set Mr. Keane’s fiscal 2013 target annual incentive at a level to
maintain his annual cash compensation (base salary plus annual cash incentive) at the 50th percentile of our
primary peer group. The Compensation Committee determined the fiscal 2013 target annual incentives of our
other executive officers based on its philosophy of setting their annual cash compensation at the 50th percentile
of our primary peer group and published compensation surveys, and also to reflect each executive’s performance
and internal equity with other Vistaprint executives.
Name
Target Annual
Incentive
($)
Actual Annual
Incentive Paid
($)
Robert S. Keane ........................................... €756,000 €682,668
Katryn S. Blake ........................................... $ 305,000 $ 275,415
Hauke K.U. Hansen ........................................ CHF90,000 CHF 81,270
Donald R. Nelson .......................................... $ 210,000 $ 189,630
Ernst J. Teunissen ......................................... €245,000 €221,235
Long-Term Incentive Program
Our long-term incentive program is designed to focus our executives and employees on long-term perform-
ance and value creation for the company and our shareholders. The Compensation Committee, with recom-
mendations from our independent compensation consultant, determines the mix among our three long-term
incentive vehicles — which may include share options, restricted share units, and long-term cash incentives —
for our executives and employees.
Share Options and Restricted Share Units for Executives
The Compensation Committee believes that granting equity awards is an effective way to motivate our
executives to manage the company in a manner that is consistent with the long-term interests of both the com-
pany and our shareholders, with equity awards generating greater returns for our executives and employees as our
share price increases. Our share options and restricted share units also provide us with an important retention
tool, as the equity grants vest over a multiple-year period only if the executive continues to be employed by us on
each vest date.
As part of the Compensation Committee’s redesign of our long-term executive compensation program in
fiscal 2012, which involved the grant to our executive officers of multi-year, premium-priced share option
awards, our Supervisory Board adopted resolutions that, until fiscal 2016 at the earliest, we will not grant any
additional long-term incentive award in any form to Mr. Keane or any additional share options to our other cur-
rent executive officers. Accordingly, we did not grant any new share options to our executive officers, although
the value of Mr. Keane’s fiscal year 2012 share option award was divided into two parts that were granted sepa-
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