First Data 2007 Annual Report Download - page 157

CORPORATE NET INCOME or BUSINESS UNIT
OPERATING PROFIT
% of Plan Attainment
Under
95%
95% to
100%
100% to
105%
105% to
110%
110%
& up
R 110% & up 70
100% % 90
120% % 110
140% % 130
170% % 150
200% %
E
V 105% to 110% 60
85% % 90
110% % 105
130% % 125
155% % 145
180% %
E
N 100% to 105% 40
70% % 90
105% % 100
125% % 115
140% % 125
160% %
U
E 95% to 100% 20
60% % 85
100% % 95
110% % 95
120% % 95
130% %
Under 95% 0
50% % 30
70% % 60
90% % 75
100% % 80
110% %
The 2007 SEIP matrix provides the Committee with the flexibility to utilize its judgment to determine bonus payout percentages from within a range deemed
appropriate given the company or business unit's level of financial performance. In determining a specific payout from within the matrix, the Committee may
consider factors such as achievement of strategic objectives, level of difficulty of the targets and/or other unanticipated and uncontrollable events which may
have impacted results during the year. The Committee also retained full discretion to reduce the amounts payable under the plan or make other awards outside
of the plan when and if circumstances warrant, however, no such reductions or payments were made in 2007.
Financial performance for officers with corporate roles was based 100% on overall corporate performance while financial performance for officers in business
unit roles was based 60% on business unit performance and 40% on overall corporate performance.
At the beginning of the year, the Committee approved target bonus levels for all executive officers. Actual awards paid to each executive could be greater than
their target bonus, up to a maximum of 200% of their target. Conversely, an executive's bonus could be less than their target, with a minimum of zero. The
SEIP has an absolute maximum payout level of $3 million for the CEO and $1.5 million for all other executive officers.
In accordance with Internal Revenue Code Section 409A, annual bonuses earned for a fiscal year are paid prior to March 15th of the following year. This
allows sufficient time to review company financial performance, and conduct individual performance reviews prior to determining award levels.
Determination of 2007 Awards
Target bonus levels for executive officers are established by the Committee based on the consideration of multiple factors including: First Data's cash
incentive compensation target level at the 75th percentile, each executive's base salary level, scope and responsibilities of the position and compensation
opportunity as compared to other First Data executives.
The 2007 bonuses paid in March of 2008 under the SEIP ranged from 100% up to 187.5% of each NEO's target award. Actual SEIP award levels were
determined based on the financial and individual performance adjustments reflected in the following table.
2007 SEIP
Bonus
Target
Corporate
Financial
Performance
Business Unit
Financial
Performance
Individual
Performance
Adjustment
2007 SEIP
Payout
Michael Capellas (1) n/a n/a n/a n/a n/a
Henry C. Duques (2) $ 1,400,000 n/a n/a n/a $ 1,400,000
Kimberly Patmore $ 600,000 100% n/a 100% $ 600,000
Peter Boucher $ 500,000 100% n/a 105% $ 525,000
David Dibble (3) $ 575,000 n/a n/a n/a n/a
Edward A. Labry III $ 500,000 100% 100% 187.5% $ 937,500
David Bailis (3) $ 575,000 n/a n/a n/a n/a
Pamela Patsley (3) $ 650,000 n/a n/a n/a n/a
(1) Under the terms of his Letter Agreement, Mr. Capellas received a pro rated guaranteed bonus for 2007 of $867,945 based on a full-year 2007 annual
bonus target of $1,800,000. As a guaranteed payment, this was not considered a performance-based payout under the SEIP. In 2008, he will participate
in the SEIP with a target bonus level of 150% of his base salary.
(2) Mr. Duques stepped down as CEO on September 24, 2007 and was paid a bonus under the SEIP of $1,400,000 at that time. This award recognized his
strong leadership in improving First Data's financial performance and implementing a successful business strategy that culminated with shareholders
receiving $34.00 per share price for FDC stock – an increase of 50% between November 26, 2005 when he returned as Chief Executive Officer and
September 24, 2007.
(3) Messrs. Dibble, Bailis and Patsley received 2007 bonus payments via severance arrangements rather than via the SEIP. Mr. Dibble served in his
position through December 31, 2007 and received his full 2007 target bonus as prescribed by the Severance/Change-in-Control policy. Mr. Bailis and
Ms. Patsley each received a pro rated bonus payment for 2007 based on their target bonus levels as prescribed by the Severance/Change-in-Control
policy.
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