CenturyLink 2015 Annual Report Download - page 62

effective benefits to our executives residing in a small city with limited commercial airline service, (ii) enables
our executives to travel in a manner that we believe is more expeditious than commercial airline service, and
(iii) is being implemented responsibly by the executives.
For purposes of valuing and reporting the use of our aircraft, we determine the incremental cost of aircraft
usage on an hourly basis, calculated in accordance with applicable guidelines of the SEC. The incremental cost of
this usage, which may be substantially different than the cost as determined under alternative calculation
methodologies, is reported in the compensation tables appearing below.
From time to time, we have organized one of our regular board meetings and related committee meetings as
a “board retreat” scheduled over a two- or three-day period. These retreats are typically held in an area where we
conduct operations, and include site visits that enable our directors and senior officers to meet with local
personnel. The spouses of our directors and executive officers are invited to attend these retreats, and we
typically schedule recreational activities for those who are able and willing to participate.
For more information on the items under this heading, see the Summary Compensation Table appearing
below.
Other Employee Benefits. We maintain certain broad-based employee welfare benefit plans in which the
executive officers are generally permitted to participate on terms that are either substantially similar to those
provided to all other participants or which provide our executives with enhanced benefits upon their death or
disability. We also maintain a supplemental disability plan designed to ensure disability payments to our officers
in the event payments are unavailable from our disability insurer.
IV. Our Policies, Processes and Guidelines Related to Executive Compensation
Our Compensation Decision-Making Process
As described further below, the Compensation Committee of our Board establishes, evaluates and monitors
our executive compensation programs, subject to the Board’s oversight. The compensation decision-making
process includes input from the Committee’s compensation consultant, our CEO and management, and requires a
careful balancing of a wide range of factors, which include, but are not limited to, the following:
Compensation Decision-Making Considerations Input From
Structure and Elements of Pay Programs
The competitive compensation practices of peer companies Consultant
Performance of our Company in relation to our peers and our internal goals Management
The financial impact and risk characteristics of our compensation programs Consultant and
CEO
The strategic and financial imperatives of our business CEO
Setting Competitive Compensation Pay Levels
Market data regarding the officer’s base salary, short-term incentive target, long-term
incentive target and total target compensation paid to comparable executives at peer
companies reflected in the benchmarking data
Consultant
The officer’s scope of responsibility, industry experience, particular set of skills,
vulnerability to job solicitations from competitors and anticipated degree of
difficulty of replacing the officer with someone of comparable experience and skill
Consultant and
CEO
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