Health Net 2015 Annual Report Download - page 129

127
2015 Target Annual Incentive Cash Award Opportunity
Named Executive Officer
2015 Target
Annual Incentive
Cash Award
(% of Base Salary
at 12/31/2015)(1)
2015 Target
Annual Incentive
Cash Award(1)
50th
Percentile of
Market
2015 Target
Annual Incentive
Cash Award
Compared to
50th Percentile of
Market(1)(2)
Jay M. Gellert
President and Chief Executive Officer
135% $ 1,660,500 $ 1,701,000 98%
James E. Woys
Executive Vice President, Chief
Financial and Operating Officer and
Interim Treasurer
100% 787,838 750,000 105%
Juanell Hefner
Chief Administration Officer
80% 437,081 460,000 95%
Steven D. Tough
President, Government Programs
80% 461,458 675,000 68%
Steven J. Sell
President, Western Region Health
Plan
80% 445,843 594,000 75%
(1) Target 2015 annual incentive cash awards are calculated based on the executive’s base salary at December 31, 2015. Target
2015 annual incentive cash awards are calculated under the original framework of the 2015 MIP approved by the
Compensation Committee in December 2014 and assume a Company Performance Score of 100% and Individual
Performance Scores (as described below) for each named executive officer equal to 100%.
(2) Describes 2015 target annual incentive cash award as a percentage of 50th percentile of market based on the competitive
market data provided by Semler. See discussion above under “—Competitive compensation analysis for fiscal 2015.”
Under the original framework of the 2015 MIP approved by the Compensation Committee in December 2014, the
actual payment amount of each named executive officer’s annual incentive cash award was to be determined by
(i) multiplying the executive’s annual base salary at December 31, 2015 and his or her individual target award
percentage, and then (ii) multiplying the result of the foregoing by the Company Performance Score and further
(iii) multiplying the result of the foregoing by such executive’s Individual Performance Score, as illustrated below:
(Annual Base Salary x Target Award Percentage) x Company Performance Score x Individual Performance Score
= Annual Incentive Cash Award Payout
Additionally, in no event could the annual incentive cash award payout to any named executive officer exceed
200% of his or her individual target bonus amount.
Under the original framework of the 2015 MIP, the funding level of the 2015 MIP was to range from 0% of the
target funding level, if the pre-established performance threshold of $511 million of 2015 PTI was not reached, to up to
150% of the target funding level, if the pre-established performance target of $551 million of 2015 PTI, which was in
line with our internal business plan and budget at the time the funding target was established, was exceeded. If the pre-
established funding threshold was met, the Compensation Committee would have had the discretion to fund the 2015
MIP within one of three funding ranges, depending on the amount of 2015 PTI achieved. The three funding ranges were
as follows:
• if 2015 PTI is within $511 million to $531 million, then 2015 MIP will be funded from 50% to 75% of the
target funding level;
• if 2015 PTI is within $532 million to $551 million, then 2015 MIP will be funded from 76% to 100% of the
target funding level; and
• if 2015 PTI is greater than $551 million, then 2015 MIP will be funded from 101% to 150% of the target
funding level.
Once the Compensation Committee determined the funding range based on PTI, the Compensation Committee was
to consider the Company’s performance with regard to, among other things, the Strategic Initiatives, to determine the
funding level within the appropriate funding range, which would have also served as the Company Performance Score.