First Data 2009 Annual Report Download - page 202

generally median for companies outside of the payments industry) 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 prior to employment by FDC and the level of compensation required to
recruit the executive. FDC has recently recruited senior executives from both inside and outside the payments
industry.
Adjustments may be made depending on peer group compensation for similar jobs, individual performance,
scope of responsibilities, special assignments, and the Executive’s salary as compared with other FDC
executives. However, there were no changes made to base salaries in 2009. Based on the results of the previously
described market compensation analysis and the economic challenges faced over the prior year, the Committee
concluded that both base salary and annual cash incentive targets for FDC’s executive officers should remain
unchanged between 2009 and 2010. Current base salary levels for named executive officers are as follows:
Base Salary as
of 12/31/09
Michael Capellas ............................................... $1,200,000
W. Patrick Shannon (1) .......................................... $ 700,000
Philip Wall (2) ................................................. $ 632,000
Thomas Bell (3) ................................................ $ 650,000
Edward A. Labry III ............................................ $ 750,000
Kevin J. Schultz (4) ............................................. $ 600,000
Grace Chen Trent .............................................. $ 400,000
(1) Mr. Shannon was appointed Chief Financial Officer, effective September 8, 2009
(2) Effective, September 8, 2009, Mr. Wall was appointed Chief Financial Officer of BAMS, a merchant
acquiring alliance between FDC and Bank of America. He is no longer considered a FDC executive officer.
(3) Effective, July 1, 2009, Mr. Bell was appointed Chief Executive Officer of BAMS. He is no longer
considered a FDC executive officer.
(4) Mr. Schultz was appointed as Executive Vice President on September 21, 2009
Annual Cash Incentives
Plan Design and Mechanics
Executive officers are eligible to receive a performance-based annual cash incentive under the FDC 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. The SEIP is an essential element of FDC’s
compensation program because the awards are not guaranteed, they are earned. This allows FDC to ensure that, if
business results warrant, competitive levels of cash compensation can be paid. This incentive program directly
supports the Committee’s Pay for Performance philosophy.
At the beginning of 2009, the Committee approved target bonus levels for all executive officers. The
Committee also determined that due to the highly uncertain economic conditions and forecasts for 2009
prevailing at the beginning of the year, it would not be prudent to establish a formulaic funding structure.
Therefore, the Committee approved a discretionary funding approach for the SEIP. Under this approach, the
Committee was tasked with evaluating FDC’s 2009 financial results, as measured by EBITDA and revenue,
against both FDC’s 2009 financial plan and also the degree of difficulty to attain that plan created by the actual
economic trends that played out during 2009. The approach also called for the Committee to take into
consideration the performance of company executives in executing key strategic objectives including, but not
limited to: improving measurable service quality, delivering consolidation-related technology and operational
efficiencies, and rebalancing the workforce to align with strategic objectives.
202