First Data 2008 Annual Report Download - page 208

applicable to all employees and especially to executive officers. The new principles include the following: Build Trust and Credibility, Create a Culture of
Honest and Open Communications, Set the Tone at the Top and Promote Substance over Form. Upholding the Company's core values is taken into
consideration during the evaluation of executive officer performance.
Paying at a Competitive Market Position
First Data and the Committee review the Company's executive compensation practices and targets on an annual basis against a peer group of companies
reflective of direct business competitors and companies with which First Data competes for talent. Other considerations used in forming the peer group
include selecting companies of similar revenue size, market capitalization, employee size, and industry.
In 2008, Frederic W. Cook & Company, Inc. was hired as an independent consultant to assist in selecting an appropriate peer group based on the above
criteria, providing compensation data for this peer group and producing analysis of First Data's competitive positioning. The Committee analyzes this
information to ensure First Data's compensation programs enable the Company to attract and retain top executive talent.
The 2008 peer group was comprised of the following 20 companies
• Adobe Systems • ADP • Affiliated Computer Services
• CA • Computer Sciences Corp. • eBay
• Electronic Arts • EMC • Fidelity National Info Services
• Fiserv • Global Payments, Inc. • Intuit
• Mastercard • NetApp • Sun Microsystems
• Symantec • Total System Services • Visa
• Western Union • Yahoo!
Competitive benchmarks for each of First Data's executive officers are created by utilizing available information disclosed in proxy statements of these
companies in combination with generally available market compensation survey information.
ELEMENTS OF COMPENSATION
Compensation for First Data's executive officers is delivered through:
• base salary;
• annual cash incentives;
• equity;
• perquisites;
• retirement plans.
Base Salary
Base salaries are set at market competitive levels (approximately 50th percentile) and reflect each executive's job responsibilities, individual skill sets
and overall value to the Company. Another factor that may influence base salary levels is an executive's base salary level prior to employment by First Data
and the level required to recruit the executive.
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