XM Radio 2015 Annual Report Download - page 39

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Primary Objectives of our Compensation Programs
Program Objectives
We strive to attract, motivate, reward and retain highly qualified executives with the skills and
experience necessary to provide leadership for our success in dynamic and competitive markets
and enhance stockholder value by providing compensation that is largely “at risk” and competitive
with the various markets and industries in which we compete for talent. We also endeavor to
develop executive compensation programs that are consistent with, explicitly linked to, and support
our strategic objectives—growing our business while enhancing stockholder value.
We achieve these objectives through three primary compensation elements:
•a base salary;
•a performance-based discretionary annual bonus that constitutes the short-term incentive
element of our program; and
•equity-based awards that constitute the long-term incentive element of our program.
The value of equity-based compensation represents a significant portion of our executives’
compensation.
Competitive
Compensation
Levels
•The Compensation Committee believes that a program
comprised principally of the above-described three elements is
consistent with programs adopted by companies with which we
compete for executive talent.
•The program is structured to meet the requirements of the
intensely competitive and rapidly changing environment in which
we operate, while ensuring that we maintain continuity in our
senior management.
•The program ensures executive officers are compensated in a
manner that advances both the short- and long-term interests of
our stockholders while not encouraging excessive risk-taking.
Compensation Mix •A significant proportion of the compensation for our named
executive officers is "at risk"—namely, the annual bonus and
equity-based awards.
•We believe this pay mix motivates the named executive officers
to achieve goals and objectives that support our business plan
and align our executives’ interests with those of our
stockholders.
•Compensation in the form of, or based on the value of, our
common stock incentivizes executives to enhance stockholder
value.
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