Vistaprint 2009 Annual Report Download - page 143

Download and view the complete annual report

Please find page 143 of the 2009 Vistaprint annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

Annual Cash Incentive Plan
The Annual Cash Incentive Plan is designed to reward executives for the achievement of annual financial
goals, specifically, growth in revenue and earnings per share. The Board of Directors sets revenue and earnings
per share targets annually as part of our comprehensive strategic planning and budgeting process. The
Compensation Committee believes the target goals are highly challenging yet achievable. Target bonus levels are
set by the Compensation Committee based on analysis of primary peer group data and based on our
pay-for-performance philosophy. Bonuses for fiscal 2009 were based 50% on the achievement of revenue targets
and 50% based on the achievement of earnings per share targets. For purposes of the bonus calculations,
“revenue” was defined as consolidated net revenue for Vistaprint and its subsidiaries, and “earnings per share”
was defined as earnings per share, on a fully diluted basis, calculated in accordance with US generally accepted
accounting principles, for the results of operations of Vistaprint on a consolidated basis.
The fiscal 2009 plan allowed for a maximum payout of 250% of the target bonus if both revenue and
earnings per share targets were exceeded by significant margins. If either revenue or earnings per share
performance were to fall short of threshold level of performance, the actual bonus payout would be zero even if
the threshold level were surpassed for the other target. The following table sets forth the target bonus levels for
named executive officers that the Compensation Committee established for fiscal 2009:
Name
Target Bonus as a
Percentage of Base
Salary
(%)
Target Bonus
($)
Robert S. Keane ......................................... 100% $415,000
Michael Giannetto ........................................ 60.71% $170,000
Wendy M. Cebula ........................................ 60% $225,000
Janet F. Holian .......................................... 60% $225,000
Anne Drapeau ........................................... 60% $150,000
Harpreet Grewal ......................................... 60% $150,000
The target revenue and earnings per share goals for each named executive officer for fiscal 2009 were $560
million and $1.15-1.20 (calculated using $1.175 as a target), respectively. The following table sets forth the
payment percentages based on the percentage of the target amounts achieved:
Revenue Earnings Per Share
% of Target Bonus Multiplier % of Target Bonus Multiplier
≤89.99% 0% ≤89.99% 0%
90% 50% 90% 25%
100% 100% 100% 100%
105% 200% ≥110% 200%
≥110% 300%
Our achievement against these goals resulted in a fiscal year 2009 annual incentive cash payout of 111% of
target levels to Mr. Keane, Ms. Cebula and Ms. Holian, who received their payout for the full year in one lump
sum; 111% of target levels to Mr. Giannetto, who received his payout in quarterly installments; and 90% for
Ms. Drapeau and Mr. Grewal, who left Vistaprint in 2008. The amount of annual incentive paid to each named
executive officer appears in the “Non-Equity Incentive Plan Compensation” column of the Summary
Compensation Table below.
Proxy Statement
27