Vistaprint 2008 Annual Report Download - page 134

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In its review, DolmatConnell analyzed base salary, target total cash compensation, actual total cash
compensation, long-term incentive compensation, target total direct compensation and actual total direct
compensation of the named executive officers as compared to two peer groups of companies. DolmatConnell
developed, with Compensation Committee oversight, a “primary” comparison peer group consisting of publicly
traded firms based upon annual revenue, industry, rate of growth, and market capitalization comparable to those
of VistaPrint at the time of review. DolmatConnell also developed a second “aspirational” comparison peer
group, consisting of companies whose annual revenues, growth rates and market capitalizations that would be
comparable to VistaPrint in the future if VistaPrint achieved its current business objectives. The Compensation
Committee reviewed the analysis of the aspirational peer group in order to forecast future compensation trends
that may be applicable to us if we continue to experience growth rates similar to those we experienced in the
past. The Compensation Committee considered the findings and recommendations of DolmatConnell as it
determined named executive officer compensation for fiscal 2008 and based its determination of compensation
packages upon the review of the primary peer group of similar sized firms. The primary peer group of the
aspirational group consists of: Akamai Technologies, Inc., Ariba, Inc., Blue Nile, Inc., Choicepoint, Inc., CNET
Networks, Inc., Digital River, Inc., Equinix, Inc., Fair Isaac Corp., Global Payments, Inc., Monster Worldwide,
Inc., Netflix, Inc., Open Text, Corp., priceline.com Inc., RealNetworks, Inc., and SAVVIS, Inc.
The Compensation Committee believes that our executive compensation program provides an overall level
of compensation that is competitive with the level of compensation of companies of similar size, complexity,
revenue and growth potential, and that the executive compensation program also reflects the desired caliber, level
of experience and performance of our executive team.
Compensation Components for Executives
The principal elements of our executive compensation program for named executive officers consist of base
salary, cash bonus, non-qualified share options and restricted share units. Named executive officers also
participate in the standard health and welfare benefits applicable to all of our employees, including matching
contributions to a defined contribution (401(k)) retirement plan, health insurance benefits, and contributions
toward life and disability insurance premiums. We also reimburse the CEO for the expense of a health club
membership.
The Compensation Committee has established a “pay-for-performance” model for our named executive
officers, with the total compensation package heavily weighted toward equity compensation. For fiscal 2008,
target cash compensation (base salary plus target cash bonus) approximates the 30th to 40th percentiles of the
primary peer group. If the established quarterly and annual targets are exceeded, actual cash compensation (base
salary plus actual cash bonus) approximates the 45th to 55th percentile of this peer group. Total target direct
compensation levels (base salary plus target cash bonus plus target annual equity incentives) approximate the
70th to 80th percentiles of the peer group. Outstanding long term performance could result in actual
compensation in the 90th percentile or above.
Cash Compensation
Base Salary
Base salary is used to recognize the experience, skills knowledge and responsibilities of all employees,
including our executives. The Compensation Committee established base salary compensation levels for named
executive officers based on external market data and overall compensation philosophy. To establish base salaries
for fiscal 2008, the Committee reviewed DolmatConnell’s recommendations with respect to the salary
compensation of officers with comparable qualifications, experience and responsibilities at companies in the
primary peer group. The Committee set the CEO’s base salary based on its analysis of the primary peer group
data. The Committee also reviewed peer data for base salary levels for each of the executive officers. For fiscal
22