First Data 2008 Annual Report Download - page 210

The 2008 bonuses paid in February of 2009 to named executive officers under the SEIP were determined exclusively based on the funding formula
described above. Actual adjusted EBITDA attainment for 2008 was 95% of the 2008 target of $2,741 million, which resulted in a funding pool of 70% of the
target amount.
Due to First Data's ability to meet the SEIP funding threshold in 2008 in the face of very challenging economic conditions, the Committee awarded
each executive officer 70% of their individual incentive target for the year. The Committee also felt that during the first year as a private company, a
consistent funding percentage for all executive officers was important to promote executive teamwork and effectiveness. 2008 SEIP target incentive and
actual award amounts are shown in the following table.
2008 SEIP
Target
SEIP Funding
Percent
Individual
Performance
Adjustment
2008 SEIP
Payout
Michael Capellas $ 1,800,000 70% n/a $ 1,260,000
Philip Wall $ 632,000 70% n/a $ 442,400
Kimberly Patmore (1) $ 600,000 70% n/a n/a
Edward A. Labry III $ 937,500 70% n/a $ 656,250
Grace Chen Trent $ 400,000 70% n/a $ 280,000
David Yates (2) $ 874,495 70% n/a $ 612,147
(1) Ms. Patmore received a prorated 2008 bonus payment in conjunction with her severance benefits as prescribed by the Severance/Change-in-Control
policy, rather than via the SEIP.
(2) Mr. Yates' bonus was paid in euros. He has a target of 623,348 euro and received a SEIP payout of 436,344 euro. The above amounts reflect a 12/31/08
exchange rate of 1.4029 U.S. dollars per euro.
Determination of 2009 Targets and Funding
Based on the results of the previously described competitive market compensation analysis and the uncertain economic climate for 2009, the Committee
concluded that the annual cash incentive targets for First Data's executive officers should remain unchanged between 2008 and 2009. Incentive targets for
each named executive officer for 2009 are the same as shown in the above table for 2008.
At the beginning of 2009, the Committee approved the above target incentive levels for named executive officers for the SEIP for 2009. The Committee
further established that 2009 funding would be determined at its discretion at the end of the year after considering accomplishments during 2009, which may
include: (1) financial performance, as measured by 2009 EBITDA; (2) operational performance, as measured by the attainment of business service level and
operational objectives; and (3) attainment of the Company's and each executives individual performance objectives. Under the terms of the SEIP for 2009, the
Committee reserves the right to adjust overall funding and individual officer payouts based on its view of overall company performance and each executive's
attainment of individual performance objectives for the year.
Equity
The objective of First Data's equity compensation program is to align long-term compensation opportunities with the interests of First Data's
shareholders. Specifically, the purpose of the 2007 Equity Plan is to promote First Data's long-term financial interests and growth by:
• attracting and retaining executives with the experience and abilities required to make a substantial contribution to the success of the Company;
• rewarding executives for long-term commitment and the creation of value over the long-term;
• motivating executives by means of growth-related incentives tied to achievement of long range goals; and
• aligning the interests of the Company's executives with those of the Company's majority shareholders.
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