Vistaprint 2014 Annual Report Download - page 134

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Committee decided not to reduce the fiscal 2014 EPS goals in the 2011-2014 awards to accommodate this investment
strategy. As calculated under these 2011-2014 awards, our adjusted EPS for fiscal 2014 was $1.93, which was below
the lowest EPS goal for fiscal 2014 of $2.23 under these awards. Accordingly, the executive officers were not eligible
for any payment for 2014 under the awards.
2012-2015 Awards Granted in Fiscal 2012. Under the long-term cash incentive awards that the Compensation
Committee granted in fiscal 2012, each named executive officer is eligible to receive 25% of his or her total award for
each of our fiscal years ending June 30, 2012, 2013, 2014, and 2015 based on our achievement of EPS goals for
each fiscal year. As set forth in the 2012-2015 award agreements with our executive officers, our EPS goals for fiscal
2014 were as follows:
• Our lowest EPS goal for fiscal 2014 was $1.85, which would have resulted in a payout of 50% of the named
executive officers’ targets for that year;
• Our medium EPS goal was $2.31, which would have resulted in a payout of 100% of the named executive
officers’ targets for that year; and
• Our highest EPS goal was $2.77, which would have resulted in a payout of 200% of the named executive
officers’ targets for that year.
As calculated in accordance with this award, our adjusted EPS for fiscal 2014 was $2.34, which was $1.06 higher
than our $1.28 EPS calculated in accordance with U.S. GAAP. The Compensation Committee calculated the adjusted
EPS in accordance with the long-term cash incentive awards of our executive officers by excluding from our U.S.
GAAP EPS: (1) $0.39 of net losses, expenses, and amortization realized in fiscal 2014 relating to our acquisitions of
AlbumPrinter Holding B.V. and Webs, Inc. in fiscal 2012, People & Print Group and Pixartprinting in fiscal 2014, and
transaction fees associated with our fiscal 2015 acquisition of FotoKnudsen and minority investment in Printi LLC in
Brazil; (2) $0.43 of losses and expenses relating to our minority investment in Namex Limited, as well as the write
down of that investment in fiscal 2014; (3) $0.10 of share-based compensation expense relating to the premium-priced
share options granted to our executives and management team; (4) $0.05 of costs related to our joint venture in Japan;
(5) $0.06 of impact from job eliminations; and (6) $0.03 of unrealized losses from currency hedges and the currency
impact on intercompany loans. This adjusted EPS of $2.34 was above the medium EPS goal and below the highest
EPS goal under these 2012-2015 awards, so we paid 106.5% of target levels to our named executive officers based
on the formula set forth in their agreements, as follows:
2012-2015 Awards
Name
Target Fiscal 2014
Incentive
($)
Actual Fiscal 2014
Incentive Paid
($)
Robert S. Keane ................................................................................................................... $ 142,500 $ 151,763
Katryn S. Blake ..................................................................................................................... 93,750 99,844
Donald R. Nelson .................................................................................................................. 75,000 79,875
Ernst J. Teunissen ................................................................................................................. 93,750 99,844
Hauke K.U. Hansen (1) ......................................................................................................... 41,250 43,931
(1) Dr. Hansen is no longer an executive officer effective in June 2014.
Benefit Programs
The Compensation Committee believes that all employees based in the same geographic location should have
access to similar levels of health and welfare benefits, and therefore our executive officers receive the same health
and welfare benefits, including medical, dental, vision, and disability plans, group life and accidental death and disability
insurance and other benefit plans, as those offered to other employees in their location. U.S. based employees may
also participate in a 401(k) plan that provides a company match of up to 50% on the first 6% of the participant’s eligible
compensation that is contributed, subject to certain limits under the United States Internal Revenue Code of 1986, or
US Tax Code, with company matching contributions vesting over a four-year period. We also provide customary pension
plans to our European employees, including a pension plan for our employees in Switzerland, including Dr. Hansen,
that complies with the requirements of Swiss law. Vistaprint and each Swiss employee contribute to the Swiss pension
plan on a sliding scale based on each employee’s age from 7% to 18% of the employee’s salary, with the employee
contributing 33% of such amount and Vistaprint contributing 67%.