Western Union 2014 Annual Report Download - page 63

45 | The Western Union Company – Proxy Statement
NOTICE OF 2015 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 2014 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.
Two of our named
executive officers
received salary
increases in connection
with promotions.
See page 55.
Annual incentive
awards
Variable compensation
component payable
in cash based on
performance against
annually established
performance objectives.
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.
Internal pay equity,
market practice and
individual performance.
Participants are eligible
to receive a cash payout
ranging from 0% to
150% of target based
on the achievement
of corporate financial,
strategic and individual/
business unit goals,
except for Mr. Ersek
whose award is payable
based entirely on the
achievement of corporate
financial and strategic
goals.
The portion of the bonus
opportunity allocated to
individual/business unit
objectives is subject to a
+/- modifier based on a
qualitative assessment of
Company and employee
execution on compliance
initiatives.
Based on the
achievement of
corporate financial,
strategic and/or
individual/business unit
goals, the committee
certified payouts ranging
from 88% to 102% of
target for the named
executive officers.
See pages 46-49 and
54-56.
Performance-
based restricted
stock units
Performance-based
restricted stock units vest
based on the Company’s
achievement of financial
performance objectives
(Financial PSUs) and the
Company’s relative TSR
performance (TSR PSUs).
Coupled with stock
options, aligns the
interests of executives
with those of our
stockholders by focusing
the executives on the
Company’s financial and
TSR performance over a
multi-year period.
Hold our executives
accountable, with
payouts varying from
target based on
actual performance
against pre-established
and communicated
performance goals.
Internal pay equity,
market practice and
individual performance.
Financial PSUs: Payout
based on revenue
and operating income
growth over 2014-2016
performance period.
TSR PSUs: Payout based
on the Company’s TSR
performance relative to
the TSR of the S&P 500
Index over 2014-2016
performance period.
Performance-based
restricted stock units
represent 80% of
the long-term grant
value, with 60% of the
long-term grant value
delivered as Financial
PSUs and 20% delivered
as TSR PSUs.
See pages 49-51 and
54-56.