Waste Management 2012 Annual Report Download - page 43

Named Executive Officer
Target Percentage of
Base Salary
Mr. Steiner ........................................................ 115
Mr. Trevathan ...................................................... 75
Mr. Fish* .......................................................... 85
Mr. Harris ......................................................... 75
Mr. Wittenbraker ................................................... 75
Mr. Preston ........................................................ 85
Mr. Woods ........................................................ 75
Ms. Cowan ........................................................ 60
* Prior to his promotion to Executive Vice President and Chief Financial Officer, Mr. Fish’s annual cash bonus
target was 75% of base salary.
For purposes of 2012 annual cash bonuses for corporate-level employees, including Messrs. Steiner,
Trevathan, Wittenbraker and Fish (post-promotion) and Ms. Cowan, performance is measured using the
Company’s consolidated results of operations. The table below details the Company-wide performance measures
set by the MD&C Committee for the corporate-level named executive officers in 2012, as well as 2012 actual
results for such performance measures.
Threshold
Performance
(60% Payment)
Target
Performance
(100% Payment)
Maximum
Performance
(200%Payment)
2012 Actual
Performance
Income from Operations Margin ..... 15.6% 16.4% 18.0% 13.56%
Income from Operations excluding
Depreciation and Amortization, less
Capital Expenditures ............ $1.9 billion $1.996 billion $2.196 billion $1.638 billion
Operating Expense, plus SG&A
Expense, as Percentage of Net
Revenue ....................... 67% 66% 64% 67.52%
The 2012 annual cash bonus performance measure for field-based executives, including Messrs. Fish, Harris
and Woods were based on (i) the Company’s consolidated results of operations for measuring income from
operations margin and (ii) their respective field-based results of operations for the Cash Flow Metric and the Cost
Metric. (With respect to Mr. Fish, his performance calculation was prorated to take account of field-based results
for the period of 2012 before he was promoted to his current corporate-level position.) We believe using field-
based results is appropriate in some cases because it ties our field-based named executive officers’ compensation
directly to the success or failure of operations that receive their primary attention. The following table sets forth
the field-based performance metrics as set by the MD&C Committee for the respective former Groups of Messrs.
Fish, Harris, and Woods, as well as results for such performance measures.
Threshold
Performance
(60% Payment)
Target
Performance
(100% Payment)
Maximum
Performance
(200%Payment)
2012 Actual
Performance*
(Dollars in millions)
Income from Operations excluding
Depreciation and Amortization, less
Capital Expenditures
Eastern Group (Mr. Fish) ......... $ 648 $ 681 $ 749 $ 676
Midwest Group (Mr. Harris) ...... $ 769 $ 808 $ 888 $ 777
Western Group (Mr. Woods) ...... $ 623 $ 655 $ 721 $ 607
Operating Expense, plus SG&A
Expense, as Percentage of Net
Revenue)
Eastern Group (Mr. Fish) ......... 54.98% 54.16% 52.52% 56.18%
Midwest Group (Mr. Harris) ...... 58.14% 57.27% 55.53% 58.03%
Western Group (Mr. Woods) ...... 60.43% 59.53% 57.73% 61.75%
* Actual results set forth in the table are adjusted as described below.
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