Western Union 2013 Annual Report Download - page 56

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Compensation Discussion and Analysis PROXY STATEMENT
The Western Union Company – Proxy Statement | 38
NOTICE OF 2014 ANNUAL MEETING OF STOCKHOLDERS AND PROXY STATEMENT
evaluation, market data regarding chief executive officer
compensation levels provided by the Compensation
Consultant, and a tally sheet of Mr. Ersek’s historical and
current compensation data. No member of management,
including Mr. Ersek, made any recommendations regarding
Mr. Ersek’s compensation or participated in the portions of
the Compensation Committee meeting or in the meeting
of the independent directors of the Board during which
Mr. Ersek’s compensation was determined and ratified.
Market Comparison
For 2013, the Compensation Committee considered
market pay practices when setting executive
compensation, but did not target the specific
compensation elements or total compensation against the
market data. Instead, the committee used market data
to assess the overall competitiveness and reasonableness
of the Company’s executive compensation program. In
evaluating 2013 market data, the committee considered
both peer group proxy data and compensation survey
data, but did not assign a specific weight to either data
source. While the Compensation Committee considers
relevant market pay practices when setting executive
compensation, it does not believe it appropriate to
establish compensation levels based only on market
practices. The Compensation Committee believes that
compensation decisions are complex and require a
deliberate review of Company performance and peer
compensation levels. The factors that influence the
amount of compensation awarded include market
competition for a particular position, an individual’s
experience and past performance inside or outside the
Company, compensation history, role and responsibilities
within the Company, tenure with the Company and
associated institutional knowledge, long-term potential
with the Company, contributions derived from creative
and innovative thinking and leadership, money transfer
or financial services industry expertise, past and future
performance objectives and value of the position within
the Company.
The Compensation Committee believes that the
Company’s peer group should reflect the markets in which
the Company competes for business, executive talent and
capital. Accordingly, the Company’s peer group includes
companies meeting either of the following criteria:
• Globalbrandsprovidingvirtualproductsorservices;or
• Companiesinvolvedwithpaymentandprocessingservices.