XM Radio 2015 Annual Report Download - page 44

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below. The annual bonus for Mr. Meyer is discussed below under the heading “2015 Compensation
Snapshot: Compensation of our Chief Executive Officer.”
Mr. Frear was awarded a bonus for his contributions during the year, including:
•his regular on-going contributions as our Chief Financial Officer and his role in managing our
fixed and variable costs;
•overseeing our investor relations efforts;
•managing our stock buyback program which increased during the year from $6 billion to $8
billion;
•supervising our satellite procurement efforts;
•overseeing our investment in Sirius XM Canada; and
•his efforts in the continued development of our information technology systems.
Ms. Altman was awarded a bonus for her contributions during the year, including:
•her regular on-going contributions as our Chief Administrative Officer;
•her role in managing our human resources function, including our employee development,
diversity and inclusion initiatives;
•managing our facilities and security operations; and
•supervising the evaluation and management of our real estate holdings.
Mr. Cady was awarded a bonus for his contributions during the year, including:
•overseeing the development of our transmission and radio technology;
•managing our engineering and streaming operations;
•expanding our relationships with automakers in the connected vehicle services area; and
•his role in the continued integration of our connected vehicle services business.
Mr. Verbrugge was awarded a bonus for his contributions during the year, including:
•driving subscriber growth in our automotive remarketing sales channel;
•expanding our relationships with franchise and independent auto dealers;
•developing new business opportunities with auto insurers, lenders and service providers;
•leading our aftermarket product development, distribution and retail sales; and
•overseeing our commercial, aviation, marine and fleet businesses.
Based on the foregoing, the Compensation Committee approved the specific annual bonus
amounts set forth in the Summary Compensation Table under the “Bonus” column for each of the
above named executive officers.
Long-Term Equity Grants for 2015
Our historical practice has generally been to grant equity incentive awards in connection with
an executive’s decision to enter into a new employment agreement with us or extend his/her
existing employment agreement. We make such grants in order to incentivize our top-performing
executives to continue providing service to the Company. Further, the long-term nature of the
awards serves as a retention tool. The number of stock options granted was equal to the total
value of the executive’s individual grant divided by the grant date fair value calculated under the
Black-Scholes-Merton model. The number of RSUs granted was equal to the total value of the
executive’s individual grant divided by the per share closing price of our common stock reported on
NASDAQ on the grant date of the executive’s award.
During 2015, our long-term equity grants consisted of stock options and RSUs. The specific
value of the options and RSUs granted was determined by the Compensation Committee (and,
other than with respect to the grants made to Mr. Meyer, with the assistance of our Chief Executive
Officer). The grant date fair value of the awards is identified in the Summary Compensation Table
34