First Data 2009 Annual Report Download - page 201

while long-term equity incentives are completely contingent on the creation of shareholder value. Together, these
elements of compensation reinforce the relationship between pay and performance.
Driving Behaviors Consistent with FDC’s Core Values
FDC is entrusted with highly sensitive and confidential customer information and therefore requires the
highest level of integrity from its employees. FDC maintains and lives by a set of guiding principles and code of
conduct applicable to all employees and especially to executive officers. These 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.
Paying at a Competitive Market Position
FDC and the Committee review the Company’s executive compensation practices and targets on an annual
basis against a peer group of companies. This peer group reflects direct business competitors and companies with
which FDC 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 2009, Frederic W. Cook & Company, Inc. was hired as an independent consultant to assist in providing
compensation data for FDC’s peer group and producing analysis of FDC’s competitive positioning. The
Committee reviews this information to ensure FDC’s compensation programs enable the Company to attract and
retain top executive talent.
The 2009 peer group was comprised of the following 21 companies:
• Adobe Systems • ADP • Affiliated Computer Services
• CA • Computer Sciences Corp. • Discover
• eBay • Electronic Arts • EMC
• Fidelity Nat’l Info Services • Fiserv • Global Payments, Inc.
• Intuit • Mastercard • NetApp
• Sun Microsystems • Symantec • Total System Services
• Visa • Western Union • Yahoo!
Competitive benchmarks for each of FDC’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. It is important to note that compensation data from non-peer group companies is also given
significant consideration since FDC also recruits talent from organizations outside the payments industry.
ELEMENTS OF COMPENSATION
Compensation for FDC’s executive officers is delivered through:
• base salary;
• annual cash incentives;
• equity;
• perquisites;
• retirement plans.
Base Salary
Base salary forms the foundation and is the fixed component of FDC’s compensation program. Base salaries
are set at market competitive levels (approximately 50th to 75th percentile of the peer group companies and
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