Western Union 2014 Annual Report Download - page 52

Compensation Discussion and Analysis PROXY STATEMENT
The Western Union Company – Proxy Statement | 34
NOTICE OF 2015 ANNUAL MEETING OF STOCKHOLDERS AND PROXY STATEMENT
We believe the “realizable” compensation shown is
reflective of the Compensation Committee’s emphasis
on “pay-for-performance” in that differences between
realizable pay and total reported compensation as well
as fluctuations year-over-year are primarily the result
of our stock performance and our varying levels of
achievement against pre-established performance goals
under our Annual Incentive Plan and Long-Term Incentive
Plan. For example, as illustrated in the table below, 2012
realizable compensation was significantly below 2012
reported compensation and 2013 and 2014 realizable
compensation. This difference was primarily a result of a
2012 payout level of 13% of target for the Chief Executive
Officer for the Company’s 2012 performance-based
stock unit awards, no payout for the Chief Executive
Officer under the 2012 Annual Incentive Plan, and
stock price depreciation during 2012. In contrast, the
improvement in realizable compensation in 2013 and 2014
is primarily attributable to our estimated performance as
of December 31, 2014 against the financial performance
objectives under the Company’s 2013 and 2014
performance-based restricted stock unit awards and stock
price appreciation.
Cash and All Other
Compensation
Equity-Based
Awards
Total Reported
Compensation(2)
201420132012
In $ millions
2014 Chief Executive Officer Total Reported Compensation
Versus Total Realizable Compensation(1)
7.0
1.8
0.5
1.3
8.8 8.8
6.4
2.4
8.2 8.0
5.5
2.5
Total Realizable Compensation(3):
0
2
4
6
8
10
$13.61(4)
$17.25(4)
$17.91(4)
(1) This graph and the total realizable compensation reported in this graph provides supplemental information
regarding the compensation paid to Mr. Ersek and should not be viewed as a substitute for the 2014 Summary
Compensation Table.
(2) As reported in the Total column of the 2014 Summary Compensation Table.
(3) Amounts reported in the calculation of total realizable compensation include (a) annualized base salary, (b) actual
bonus payments made to Mr. Ersek with respect to each of the years shown under the Company’s Annual Incentive
Plan, (c) actual amounts paid with respect to discretionary bonuses in the year in which such bonuses are paid, (d) the
value realized from the exercise of stock options and for unexercised stock options, the difference between the exercise
price and the closing stock price on December 31, 2014, each reported in the year granted, (e) the value realized upon
vesting of restricted stock units or performance-based restricted stock units and the value of unvested restricted stock
units or performance-based restricted stock unit awards based on the closing stock price on December 31, 2014, each
reported in the year granted, and (f) amounts reported in the All Other Compensation Table for the respective years.
For purposes of this table, the value of the TSR PSUs is based on target performance since the TSR PSUs vest based on
the Company’s TSR at the end of the three-year performance period compared to the Company’s TSR at the beginning
of the performance period. The Financial PSUs and the 2013 performance-based restricted stock unit awards are valued
for purposes of this table based on estimated performance as of December 31, 2014.
(4) Closing stock price as of December 31 for each year reported.