First Data 2011 Annual Report Download - page 143

At the beginning of 2011, the Committee approved target bonus levels for all executive officers. The Committee also approved a
fully discretionary funding structure for 2011 for the SEIP. This structure was deemed most appropriate to ensure the Committee
maintained the discretion and ability to appropriately incent and reward the performance of each executive based upon all factors
relevant to the evaluation of company performance. Company performance was evaluated based on key financial metrics such as
revenue and EBITDA and achievements which advanced progress against First Data's six strategic pillars. Non-financial progress was
measured via a balanced scorecard of metrics measuring results related to each of FDC's six strategic pillars: (i) Best Products Enabled
with Best Technology ; (ii) Profitable Top-Line Revenue Growth ; (iii) Global Business Delivered Locally ; (iv) Continuous
Operational Improvement; (v) Inter-Generational Leadership; and (vi) Customer First.
Determination of 2011 Awards
The 2011 awards to be paid in March of 2012 to executive officers under the SEIP were determined by the Committee after
careful evaluation of FDC and executive performance during 2011. The Committee considered both financial and strategic results
during the year in determining SEIP funding for 2011. The Committee established a 95% funding level for the SEIP based on a
combination of strong financial performance and strong progress and accomplishments in key strategic areas such as margin
improvement, customer alignment, product innovation and operational efficiency, including:
• Creation of a client-centric structure in the North America business
• Significantly expanding international margins
• Increasing technology reliability and security
• Launching Google Wallet and expanding product pipeline
• Improving capital structure via refinancing activities and working capital savings
• Successfully closing deal to operate Bank of America's merchant platform
• Building employee engagement, a pay for performance culture and talent development
The Committee awarded each executive 95% of their individual incentive target for the year, with the exception of Mr. Elkins
who received the equivalent of 95% of target payout based on a 125% of base pay SEIP target due to his promotion to President, First
Data International Regions.
2011 SEIP
Target
SEIP Funding
Percent
2011 SEIP
Payout
Jonathan J. Judge $ 2,250,000 95% $ 2,137,500
Edward A. Labry III $ 1,250,000 95% $ 1,187,500
John Elkins $ 575,000 95% $ 682,813
Ray E. Winborne $ 600,000 95% $ 570,000
Kevin Kern $ 575,000 95% $ 546,250
Determination of 2012 Targets and Funding
When establishing executive officer target award levels under the SEIP, the Committee considers multiple factors including:
FDC's 75th percentile target level for annual cash incentives, each executive's base salary level and the scope and responsibilities of
each executive's position. For 2012, the Committee concluded that the annual cash incentive targets for FDC's executive officers met
all FDC compensation objectives and should remain unchanged from 2011 levels on a percentage of base pay basis, with the
exception of Mr. Elkins, whose percentage was increased to 125% as a result of his 2011 promotion. Incentive targets for 2012 each
named executive officer are as follows:
2012 SEIP Target
as a % of Base Pay
2012 SEIP
Target in $
Jonathan J. Judge 150% $ 2,250,000
Edward A. Labry III 125% $ 1,250,000
John Elkins 125% $ 781,250
Ray E. Winborne 100% $ 600,000
Kevin Kern 100% $ 575,000
At the beginning of 2012, the Committee approved a discretionary funding mechanism for the SEIP for the 2012 plan year. The
Committee will determine the funding level at its discretion at the end of the year after considering FDC's 2012 financial performance
and performance against key metrics and objectives aligned to the six pillars of FDC's strategy.
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