First Data 2012 Annual Report Download - page 136

Drive 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. During 2012, FDC stressed its vision, mission and core values to reflect FDC’ s purpose, long-term vision and the
global employee attitudes and attributes that drive the Company’ s success in the marketplace. FDC’ s five core values are: Put
Customers First, Empower our People, Act with Integrity, Deliver Excellence and Enjoy the Journey.
Executive behavior is considered by the Committee when determining annual executive incentive awards and all other
compensation decisions. Furthermore, FDC’ s annual objectives and strategies are closely aligned with FDC’ s vision, mission and
values. Success against these objectives and strategies is a key consideration in the Committee’ s evaluation of overall company
performance.
Pay at a Competitive Market Position
FDC and the Committee review the Company’ s executive compensation practices and targets against a peer group of companies
on an annual basis. FDC’ s current competitive positioning and the impact future decisions may have on such positioning are carefully
evaluated. The peer group used to assess competitive positioning reflects FDC’ s direct business competitors and companies with
which FDC competes for talent.
FDC’ s 2012 peer group remains the same as in 2011 and is comprised of direct competitors, frequently identified peer
companies to FDC’ s direct competitors, and other companies deemed comparable to FDC in terms of industry, pay practices, revenue
and market value. The 2012 peer group includes the following 21 companies:
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-
p
eer group companies is also given significant consideration since FDC also recruits talent from
organizations outside the payments industry.
In order to successfully attract and retain top performing executives, FDC annually reviews market data and aims to provide
competitive base pay and short-term cash incentive opportunities. As a privately held company, competitive cash compensation
programs are required for FDC to attract and retain top talent due to the uncertain time horizon and lack of liquidity associated with
FDC’ s equity-based compensation vehicles.
ELEMENTS OF COMPENSATION
Compensation for FDC’ s executive officers is delivered through:
• base salary;
• annual cash incentives;
• equity;
• perquisites; and
• retirement plans.
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