First Data 2012 Annual Report Download - page 137

Base Salary
Base salary forms the foundation of FDC’ s compensation program. Base salaries for executives reflect market competitive
levels (as described above) and factors unique to each executive such as scope of responsibilities, individual skill set, experience level,
time in role, individual performance, pay relative to internal peers and overall value to FDC. 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.
During the 2012 annual pay review process which included consideration of individual performance, salary increase trends and
competitive market pay for each executive position. For 2012, no base pay adjustments were made to executive officers with the
exception of Mr. Elkins whose base pay was increased from $575,000 to $625,000 in recognition of his 2011 promotion to President,
First Data International Regions.
Effective March 1, 2013, Mr. Elkins base salary will be increased to $750,000 and Mr. Winborne’ s base salary will be increased
to $675,000. Current base salary levels for named executive officers are as follows:
Annual Cash Incentives
P
lan 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 on
the basis of company financial performance and established strategic objectives for the year. The SEIP is an essential element of
FDC’ s compensation program because the awards are driven by company performance.
At the beginning of 2012, the Committee approved target bonus levels for all executive officers. The Committee also approved a
fully discretionary funding structure for 2012 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) Customer First;
(ii) Best Products Enabled with Best Technology; (iii) Profitable Top-Line Revenue Growth; (iv) Global Business Delivered Locally;
(v) Continuous Operational Improvement; and (vi) Inter-Generational Leadership.
D
etermination of 2012 Awards
The 2012 awards to be paid in March of 2013 to executive officers under the SEIP were determined by the Committee after
careful evaluation of FDC and executive performance during 2012. The Committee considered both financial and strategic results
during the year in determining SEIP funding for 2012. The Committee established an 85% 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 but certainly not limited to:
• Year-over-year EBITDA growth of 8.3%
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Base Salary as o
f
December 31, 2012
Base Salary as o
f
March 1, 2013
Jonathan J. Judge, Chief Executive Officer $1,500,000 N/A
Edward A. Labry III, Executive Vice President &
President, First Data
—
North America $ 1,000,000 $ 1,000,000
John Elkins, Executive Vice President & President, First
Data
—
International Regions $625,000 $750,000
Ray E. Winborne, Executive Vice President & Chief
Financial Office
r
$ 600,000 $ 675,000
Kevin M. Kern, Executive Vice President, Operations &
Technology $575,000 N/A