ServiceMagic 2015 Annual Report Download - page 11

TableofContents

NominatingCommittee

TheNominatingCommitteefunctionspursuanttoawrittencharteradoptedbytheBoardofDirectors,themostrecentversionofwhichwasfiledas
AppendixCtoIAC’s2014AnnualMeetingproxystatement.TheNominatingCommitteeisappointedbytheBoardtoassisttheBoardby:(i)identifying,
reviewingandevaluatingindividualsqualifiedtobecomeBoardmembers,(ii)recommendingdirectornomineesforthenextannualmeetingofstockholders(and
nomineestofillvacanciesontheBoardasnecessary)and(iii)makingrecommendationswithrespecttothecompensationandbenefitsofdirectors.

ExecutiveCommittee

TheExecutiveCommitteehasallthepowerandauthorityoftheBoardofDirectorsofIAC,exceptthosepowersspecificallyreservedtotheBoardby
DelawarelaworIAC’sorganizationaldocuments.

SECTION16(a)BENEFICIALOWNERSHIPREPORTINGCOMPLIANCE

Section16(a)oftheExchangeActrequirestheCompany’sofficersanddirectors,andpersonswhobeneficiallyownmorethan10%ofaregisteredclass
oftheCompany’sequitysecurities,tofileinitialstatementsofbeneficialownership(Form3)andstatementsofchangesinbeneficialownership(Forms4and5)of
commonstockandotherequitysecuritiesoftheCompanywiththeSEC.Officers,directorsandgreaterthan10%beneficialownersarerequiredbySECrulesto
furnishtheCompanywithcopiesofallsuchformstheyfile.BasedsolelyonareviewofthecopiesofsuchformsfurnishedtotheCompanyand/orwritten
representationsthatnoadditionalformswererequired,theCompanybelievesthatitsofficers,directorsandgreaterthan10%beneficialownerscompliedwith
thesefilingrequirementsin2015.

Item11.ExecutiveCompensation

COMPENSATIONCOMMITTEEINTERLOCKSANDINSIDERPARTICIPATION

ThemembershipoftheCompensationandHumanResourcesCommitteeconsistedofMr.RosenblattandMs.Hammerduring2015.Neitherofthemhas
beenanofficeroremployeeofIACatanytimeduringtheirrespectiveserviceonthecommittee.

COMPENSATIONANDHUMANRESOURCESCOMMITTEEREPORT

TheCompensationandHumanResourcesCommitteehasreviewedtheCompensationDiscussionandAnalysisanddiscusseditwithCompany
management.Inrelianceonitsreviewandthediscussionsreferredtoabove,theCompensationandHumanResourcesCommitteerecommendedtotheBoardthat
theCompensationDiscussionandAnalysisbeincludedinIAC’s2015AnnualReportonForm10-K.

Members of the Compensation and Human Resources Committee

DavidRosenblatt(Chair)
BonnieS.Hammer

COMPENSATIONDISCUSSIONANDANALYSIS

PhilosophyandObjectives

Ourexecutiveofficerswhosecompensationisdiscussedinthiscompensationdiscussionandanalysis(the“CD&A”)andwhowerefertoasournamed
executiveofficersinthisCD&A(the“NEOs”)are:

·BarryDiller,ChairmanandSeniorExecutive;
·VictorKaufman,ViceChairman;
·JoeyLevin,ChiefExecutiveOfficercommencingJune2015;
·GreggWiniarski,ExecutiveVicePresidentandGeneralCounsel;and
·JeffreyKip,ChiefFinancialOfficerthroughJune2015.

Ourexecutiveofficercompensationprogramisdesignedtoincreaselong-termstockholdervaluebyattracting,retaining,motivatingandrewarding
leaderswiththecompetence,character,experienceandambitionnecessarytoenabletheCompanytomeetitsgrowthobjectives.

ThoughIACisapubliclytradedcompany,weattempttofosteranentrepreneurialculture,andattractandretainseniorexecutiveswithentrepreneurial
backgrounds,attitudesandaspirations.Accordingly,whenattemptingtorecruitandretainourexecutiveofficers,aswellasotherexecutiveswhomaybecome
executiveofficersatalatertime,wecompetenotonlywithotherpubliccompanies,butalsowithearlierstagecompanies,companiesfundedbyprivateequityand
venturecapitalfirmsandprofessionalfirms.Westructureourcompensationprogramsothatwecancompeteinthisvariedmarketplacefortalent,withanemphasis
onvariable,contingentcompensationandlong-termequityownership.

Whileweconsidermarketdatainestablishingbroadcompensationprogramsandpracticesandmayperiodicallybenchmarkthecompensationassociated
withparticularexecutivepositions,wedonotdefinitivelyrelyoncompetitivesurveydataoranybenchmarkinginformationinestablishingexecutive
compensation.TheCompanymakesdecisionsbasedonahostoffactorsparticulartoagivenexecutive’ssituation,includingitsfirsthandexperiencewiththe
competitionforrecruitingexecutivesanditsunderstandingofthecurrentenvironment,andbelievesthatover-relianceonsurveydata,orabenchmarkingapproach,
istoorigidandstaleforthedynamicandfastchangingmarketplacefortalentinwhichwecompete.

Similarly,webelievethatarithmeticapproachestomeasuringandrewardingshort-termperformanceoftenfailtoadequatelytakeintoaccountthe
multiplefactorsthatcontributetosuccessattheindividualandbusinesslevel.Inanygivenperiod,theCompanymayhavemultipleobjectives,andthese
objectives,andtheirrelativeimportance,oftenchangeasthecompetitiveandstrategiclandscapesshift.Accordingly,wehavehistoricallyavoidedtheuseofstrict
formulasinourannualbonusprogram,believingthattheyoftenover-compensateorunder-compensateagivenperformancelevel.Weinsteadrely

8