Western Union 2015 Annual Report Download - page 50

NOTICE OF 2016 ANNUAL MEETING OF STOCKHOLDERS AND PROXY STATEMENT
32 | The Western Union Company
COMPENSATION DISCUSSION AND ANALYSIS
Incentive Plan). Pay is based on the annual base salary and
target incentive opportunities applicable to Mr. Ersek as of
December 31, 2015.
71%
LONG-TERM EQUITY
COMPENSATION
PERFORMANCE-
BASED COMPONENT
12%
BASE SALARY
17%
ANNUAL
INCENTIVE
88%
CHIEF EXECUTIVE OFFICER
2015 TOTAL DIRECT
COMPENSATION
Since a significant portion of Mr. Ersek’s compensation is
both performance-based and “at-risk,” we are providing the
following supplemental graph to compare the compensation
granted to Mr. Ersek, as required to be reported by the SEC
rules in the 2015 Summary Compensation Table, to the
compensation “realizable” by him for 2013 to 2015.
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.
2015 CHIEF EXECUTIVE OFFICER TOTAL
REPORTED COMPENSATION
VERSUS TOTAL REALIZABLE COMPENSATION(1)
In $ millions
2013 2014 2015
8.8 8.8 8.2 8.4 8.6 7.6
TSR = 30.65%(4) TSR = 6.94%(4) TSR = 3.27%(4)
TOTAL REPORTED COMPENSATION(2) TOTAL REALIZABLE COMPENSATION(3)
0
2
4
6
8
10
(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 2015 Summary Compensation Table.
(2) As reported in the Total column of the 2015 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 Annual Incentive Plan, (c) actual amounts paid with respect to discretionary
bonuses in the year in which such bonuses are earned, (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, 2015, each reported in the year granted, (e) the
value realized upon vesting of restricted stock units or PSUs and the value of unvested restricted stock units or PSUs based on the closing
stock price on December 31, 2015, 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 are valued for purposes of this table based on estimated performance as of December 31, 2015.
(4) TSR for each year reported.