First Data 2009 Annual Report Download - page 203

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 2009 Awards
When establishing target bonus levels for executive officers, the Committee considers multiple factors
including: FDC’s 75th percentile target level for annual cash incentive compensation versus its peer group, each
executive’s base salary level, scope and responsibilities of each executive’s position and compensation
opportunity as compared to other FDC executives.
The 2009 bonuses paid in February of 2010 to named executive officers under the SEIP were determined by
the Committee after careful evaluation of the financial and strategic criteria established at the beginning of 2009.
Financially, FDC delivered below-plan results, with both EBITDA and revenue at approximately 95% of planned
levels for 2009. However, the Committee felt that significant strides had been made by management in the areas
of technology and operational consolidations, improved customer service and other operational quality metrics.
Overall, based upon these mixed results and a generally equal to worse than expected economic environment in
2009, the Committee established a 50% funding level for the SEIP for 2009.
The Committee awarded each executive officer 50% of their individual incentive target for the year, with
the exception of Mr. Labry and Mr. Schultz. Both received an additional discretionary $60,000 award in
recognition of the recent expansion of their business unit leadership roles to include global, not just domestic,
responsibility. 2009 SEIP target incentive and actual award amounts are shown in the following table.
2009 SEIP
Target
SEIP Funding
Percent
Individual
Performance
Adjustment
2009 SEIP
Payout
Michael Capellas ............. $1,800,000 50% n/a $900,000
W. Patrick Shannon (1) ....... $ 875,000 50% n/a $ 0
Philip Wall ................. $ 632,000 50% n/a $316,000
Thomas Bell ................ $ 650,000 50% n/a $325,000
Edward A. Labry III .......... $ 937,500 50% $60,000 $528,750
Kevin J. Schultz (2) ........... $ 750,000 50% $60,000 $164,795
Grace Chen Trent ............ $ 400,000 50% n/a $200,000
(1) Mr. Shannon received a sign-on bonus in September 2009 of $250,000 in lieu of a prorated payout under the
SEIP.
(2) Mr. Schultz received a prorated payout under the SEIP based on his September 21, 2009 hired date.
Determination of 2010 Targets and Funding
Based on the results of the previously described competitive market compensation analysis and the
uncertain economic climate for 2010, the Committee concluded that the annual cash incentive targets for FDC’s
executive officers should remain unchanged between 2009 and 2010. Incentive targets for each named executive
officer for 2010 are the same as shown in the above table for 2009.
At the beginning of 2010, the Committee again approved a discretionary funding mechanism for the SEIP.
The Committee will determine the 2010 funding level at its discretion at the end of the year after considering
FDC’s 2010 performance in the following areas: (1) financial performance, as measured by EBITDA and
revenue; (2) operational performance, as measured by the attainment of business service level and other strategic
operational objectives; and (3) attainment of the Company’s and each executive’s individual performance
objectives. Under the terms of the SEIP for 2010, 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.
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