First Data 2014 Annual Report Download - page 123

price. In the event of Death or Disability, the shareholder has a put right to sell shares back to Holdings at the fair market value share price.
Grant Process
All equity grants were made under the 2007 Equity Plan, and granted at the then-current fair market value on the date of each grant. Fair market value was
determined by the full Holdings Board at the time of grant. Equity grants were made on the date the grants were approved by the Holdings Committee.
Perquisites
The Company’s compensation philosophy is to focus on performance-based forms of compensation while providing only minimal executive benefits and
perquisites. Reimbursement for relocation and moving expenses are offered to the Company’s executive officers. Executives are also authorized to use the
corporate aircraft for personal purposes in limited instances.
The financial planning benefit previously offered to all executives was terminated in 2013. Per his employment agreement, Mr. Bisignano is eligible for up to
$100,000 per year of financial planning assistance; however, this benefit was only partially used in 2014 and reported in perquisites.
Retirement Plans
In 2014, all employees in the U.S., including executive officers, were eligible to participate in the First Data Corporation Incentive Savings Plan (ISP). The
ISP is a qualified 401(k) plan designed to comply with Internal Revenue Service (IRS) safe harbor rules. The Company maintains the ISP to allow employees
to save for their retirement on a pre-tax basis.
The ISP allows for company contributions to help employees build retirement savings. Beginning January 1, 2014, the company match has been suspended
for all employees, including executives.
We do not currently offer defined benefit plans or non-qualified retirement plans to our executive officers.
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In general, the Company does not enter into employment agreements with employees, including the Company’s executive officers, except in the case of Mr.
Bisignano. A description of this agreement is provided below. All current executive officers serve at the will of the Board.
The Company believes that reasonable and appropriate severance and Change in Control benefits are necessary in order to be competitive in the Company’s
executive attraction and retention efforts. Information regarding applicable payments under such agreements for the named executive officers is provided in
the Severance Benefit table.
The Policy provides for the payment of benefits to executive officers upon involuntary termination without cause from FDC with or without a Change of
Control. Under the Policy, no benefits are provided based solely on a Change in Control. The Policy provides for payment of benefits as described below:
(i) For executive officers appointed prior to May 1, 2011, or having 5 years or more service in such a position: total cash payments equal to the
executive officer’s base pay plus prior year bonus multiplied by 2.
For executive officers appointed on or after May 1, 2011 and having 2 to 5 years of service in such a position: total cash payments equal to the
executive officer’s base pay plus prior year bonus multiplied by 1.5.
For executive officers appointed on or after May 1, 2011 and having less than 2 years of service in such a position: total cash payments equal to
the executive officer’s base pay for one year.
(ii) A cash payment equal to the executive officer’s prior year bonus prorated for the year of termination.
(iii) Continuation of medical, dental and vision benefits coverage for the severance period, with a portion of the costs of the benefits paid by the
executive officer.
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