Western Union 2013 Annual Report Download - page 65

47 | The Western Union Company – Proxy Statement
NOTICE OF 2014 ANNUAL MEETING OF STOCKHOLDERS AND PROXY STATEMENT
Compensation Discussion and Analysis PROXY STATEMENT
Performance levels of the objectives were designed
to be achievable, but required the coordinated, cross-
functional focus and effort of the executives. The strategic
performance objectives, their respective weightings as
well as the performance assessment for the 2013 Annual
Incentive Plan awards are as follows:
2013 Annual Incentive Plan Strategic Performance Goals 2013 Actual Performance
Currency adjusted growth in revenue originating from wu.com
(weighting 25%)
Between threshold and target
performance goals
Currency adjusted growth in the amount of money sent by consumers
via wu.com (weighting 10%)
Below the threshold performance goal
Currency adjusted revenue growth in Western Union Business Solutions
(weighting 25%)
Above the target performance goal
Currency adjusted EBITDA growth in Western Union Business Solutions
(weighting 10%)
Above the target performance goal
Growth in the amount of principal received into
electronic accounts (i.e., bank accounts, prepaid accounts) (weighting 15%)
Above the target performance goal
The number of locations that are enabled
with the functionality to provide cash in and/or cash out for pre-paid cards
(weighting 15%)
At the threshold performance goal
Performance Level Achievement 17%
Based on the achievement of the 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), and did not reduce the cash
component of the 2013 annual incentive awards. Please
see “-Compensation of Our Named Executive Officers”
for further information regarding the payouts received by
each named executive officer based upon the Company’s
achievement of the corporate and strategic objectives and
the named executive officer’s achievement of his individual
and/or business unit objectives.
Long-Term Incentive Compensation
The Long-Term Incentive Plan allows the Compensation
Committee to award various forms of long-term incentive
grants, including stock options, performance-based equity
and performance-based cash awards. The Compensation
Committee has sole discretion in selecting participants
for long-term incentive grants and the Compensation
Committee approves all equity grants made to our senior
executives. When making regular annual equity grants,
the Compensation Committee’s practice is to approve
them during the first quarter of each year as part of
the annual compensation review. Among other factors,
the Compensation Committee considers dilution of the
Company’s outstanding shares when making such grants.
The grant date of the regular annual equity grants is the
date upon which the committee approves the award.
2013 Annual Long-Term Incentive Awards. In February 2013,
the Compensation Committee granted the Chief Executive
Officer and the Executive Vice Presidents long-term
incentive awards under the Long-Term Incentive Plan.
The awards consisted of 33% stock option awards and
67% performance-based restricted stock units. The
committee believed that the mix of stock options and
performance-based restricted stock units was appropriate
because the two forms of awards together represented
a balanced reflection of stockholder returns and financial
performance. The stock options vest in 25% annual
increments over four years and have a 10-year term.
The performance-based restricted stock unit awards are
described in greater detail below.
The Compensation Committee’s objectives for the 2013
long-term incentive awards were to:
• Aligntheinterestsofourexecutiveswiththeinterests
of our stockholders by focusing on objectives that
result in stock price appreciation through the use of
stock options;