First Data 2007 Annual Report Download - page 161

Going forward, the Committee does not anticipate granting equity such as stock options or restricted stock on an annual or other regular basis to executive
officers under the 2007 Equity Plan.
Grant Process
Equity awards under the LTIP were typically granted on an annual basis each February following the public release of First Data's earnings for the previous
fiscal year. Pre-merger, the Committee only granted awards after material information regarding First Data's performance for the preceding year had been
disclosed. All equity grants under the LTIP required specific Committee approval. The exercise price for all LTIP stock option awards granted in 2007 was
based on the average high and low stock market price on the date of grant without exception.
Post-merger, First Data equity is no longer publicly traded, so the same timing considerations do not apply. Under the 2007 Equity Plan, stock options are
only granted subsequent to an employee's investment in company restricted shares. The Committee intends this to be a one-time opportunity for eligible
executives which occurred either immediately following the merger or will occur immediately following their hire date. Equity grants under the 2007 Equity
Plan will be made at the then-current fair market value, which will be determined by the full Board from time to time. Equity grants are made on the date the
grant is approved by the Committee.
Employee Stock Purchase Plan
All domestic employees, including executive officers were eligible to participate in the Employee Stock Purchase Plan (the "ESPP") during the first half of
2007. The plan was suspended as of June 30, 2007 due to the expected merger and delisting of First Data equity during the third quarter. The ESPP was
terminated upon completion of the merger.
The ESPP met the requirements of Internal Revenue Code Section 423. Contributions for the purchase of shares were accumulated through payroll deductions
and used to make quarterly purchases of First Data common stock at a price equal to a 15% discount from the lower of the market price at the beginning or
end of the quarter. The maximum contribution for any participant was set at $25,000 per year.
PERQUISITES
As perquisites are not performance-based, First Data does not emphasize them in the Company's executive compensation program. The Company believes
that the competitiveness of its compensation programs comes from the target levels and upside potential in the Company's cash incentive and equity
programs.
Executive perquisites may include, on a rare occasion and upon approval by the CEO, the personal use of the corporate aircraft, personal use of tickets to
professional sporting events, automobile leases or apartment leases. In 2007, only Mr. Duques had an apartment lease. No other named executive officers had
either an automobile or apartment lease. A portion of country club membership expenses were reimbursed for Ms. Patmore in 2007, however this perquisite
will no longer be provided to any executives after 2007.
Reimbursement for relocation and moving expenses and personal financial planning up to a specified annual dollar limit ($20,000 for the first year and
$10,000 for each subsequent year) are offered to First Data's executive officers. First Data's relocation program is required to attract and retain top talent in a
competitive environment. The program ensures a new or transferred executive can transition into their new work location as quickly and efficiently as
possible. Competitive analysis indicates that the financial planning benefit is comparable to what is offered by a majority of companies with whom we
compete for talent.
The Committee reviews the appropriateness of perquisites provided to executive officers on an annual basis.
NON-QUALIFIED DEFERRED COMPENSATION
First Data offered the Supplemental Incentive Savings Plan – 2 ("SISP-2") to a group of about 2,300 highly compensated employees within the U.S. All
executive officers were eligible to participate in this unfunded non-qualified deferred compensation plan on the same terms as all other eligible employees.
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