Western Union 2013 Annual Report Download - page 61

43 | The Western Union Company – Proxy Statement
NOTICE OF 2014 ANNUAL MEETING OF STOCKHOLDERS AND PROXY STATEMENT
Compensation Discussion and Analysis PROXY STATEMENT
Element Key Characteristics
Why We Pay
This Element
How We
Determine Amount 2013 Decisions
Base salary Fixed compensation
component payable in
cash. Reviewed annually
and adjusted when
appropriate.
Establish a pay
foundation at
competitive levels
to attract and retain
talented executives.
Experience, job scope,
responsibilities, market
data, and individual
performance.
None of our named
executive officers
received a salary
increase in 2013 from
levels established in
March 2012 (or, if later,
the executive’s hire
date). See pages 53-56.
Annual
incentive
awards
Variable compensation
component payable
based on performance
against annually
established performance
objectives.
2013 annual incentive
award includes cash
and restricted stock unit
components.
Motivate and
reward executives
for performance
on key financial,
strategic and/or
individual objectives over
the year.
Hold our executives
accountable, with
payouts varying from
target based on
actual performance
against pre-established
and communicated
performance goals.
Cash Component:
Participants are eligible
to receive a cash payout
ranging from 0% to
125% of target based
on the achievement
of corporate financial
and individual/business
unit goals, except
for Mr. Ersek whose
cash award is payable
based entirely on the
achievement of corporate
financial goals.
Restricted Stock Unit
Component:
Participants are eligible to
receive a restricted stock
unit award ranging from
0% to 75% of target
based on the achievement
of a threshold operating
income goal and
strategic performance
objectives, creating
upside opportunity that
is delivered as a deferred
equity award; or a
downside modification of
the cash component.
Cash Component:
Based on the
achievement of
corporate financial
and/or individual/
business unit goals,
the committee
certified a cash payout
amount ranging
from 80% to 92% of
target for the named
executive officers.
Restricted Stock Unit
Component:
Based on the
achievement of strategic
performance objectives,
the committee certified
a restricted stock unit
award payout equal to
17% of target (versus a
payout of 25% of target
that would have been
paid had the Company
achieved its internal
plan for its strategic
performance goals).
See pages 44-47 and
53-56.