First Data 2008 Annual Report Download - page 209

Based on the results of the previously described market compensation analysis and the uncertain economic climate for 2009, the Committee concluded
that both base salary and annual cash incentive targets for First Data's executive officers should remain unchanged between 2008 and 2009. Current base
salary levels for named executive officers are as follows:
Base Salary as
of 12/31/08
Michael Capellas $ 1,200,000
Philip Wall (1) $ 632,000
Kimberly Patmore (2) n/a
Edward A. Labry III $ 750,000
Grace Chen Trent $ 400,000
David Yates (3) $ 699,595
(1) During 2008, Mr. Wall was promoted to the post of Chief Financial Officer and relocated from the United Kingdom to the United States. His base
salary was increased from 290,000 pounds sterling ($566,776 based on a 6/10/08 (the date of his appointment) exchange rate of 1.9544 U.S. dollars per
pound) to $632,000 effective July 1, 2008.
(2) Ms. Patmore's last day employed by First Data was August 15, 2008.
(3) Mr. Yates is based in Germany and paid in euros. His base salary as of 12/31/08 was 498,678 euro. The above figure is based on a 12/31/08 exchange
rate of 1.4029 U.S. dollars per euro.
Annual Cash Incentives
Plan Design and Mechanics
Executive officers are eligible to receive a performance-based annual cash incentive under the First Data Senior Executive Incentive Plan ("SEIP").
SEIP payouts to executive officers are based on target annual cash incentive levels established by the Committee, company financial performance and
individual performance in areas such as attainment of company or business unit strategic objectives, teamwork and company leadership efforts.
At the beginning of the year, the Committee approved target bonus levels for all executive officers and established a financial target for the SEIP for
2008 as measured by "adjusted EBITDA". The Committee also established a potential funding pool for the SEIP equal to the sum of all participants' annual
incentive targets. A payout formula was also established, whereby the funding pool would increase by 6% for each 1% that actual adjusted EBITDA exceeded
the established target and would decrease by 6% for each 1% that actual adjusted EBITDA fell short of the established target. If 95% of the adjusted EBITDA
target was not met, the SEIP funding pool would be reduced to zero.
Per the terms of the SEIP, the funding pool can be discretionarily decreased by the Committee, but not increased. The Committee also retained full
discretion to reduce the amounts payable to any individual under the plan or make other awards outside of the plan when and if circumstances warranted such
a payment. However, no such reductions or additional payments were made in 2008 to any named 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 2008 Awards
Target bonus levels for executive officers are established by the Committee based on the consideration of multiple factors including: First Data's 75th
percentile target level for annual cash incentive compensation, each executive's base salary level, scope and responsibilities of each executive's position and
compensation opportunity as compared to other First Data executives.
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