Vistaprint 2015 Annual Report Download - page 142

Download and view the complete annual report

Please find page 142 of the 2015 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

30
• Detailed equity utilization analysis comparing the number of shares that Cimpress grants per year pursuant
to equity compensation awards and the number of shares subject to outstanding equity compensation
awards and available for grant under our equity compensation plans with our peer group, to assist the
Compensation Committee in setting our practices of granting equity to our employees; and
• Follow-up assistance for a job leveling solution, including job evaluation technology and supporting tools.
The Compensation Committee took into account the above services as well as the fees paid to Towers Watson
when assessing the firm's independence and determined that Towers Watson was independent during fiscal 2015.
Compensation Components for Executives
The principal elements of our compensation program for our executive officers are the following:
• Base salary
• Annual cash incentive awards, which reward executives based on Cimpress' achievement of financial
performance goals for the current fiscal year
• Long-term incentive awards, which may include long-term cash incentives, share options, and restricted
share units, which reward executives based on Cimpress' achievement of longer term financial objectives
and the creation of value for our shareholders as reflected in our share price
• Standard health and welfare benefits that are applicable to all of our employees in each executive’s
geographic location
In addition, we have severance and change in control arrangements with our executives, and from time to time
we provide expatriate benefits for executives who are assigned to work in geographic locations outside of their
home countries.
Under our pay-for-performance philosophy, the compensation of our executives and other employees at higher
levels in the organization is more heavily weighted towards variable compensation based on our performance, and
base salary generally accounts for a smaller portion of these employees’ total compensation packages. The
percentiles below are designed to ensure that our executive officers will receive compensation significantly below
the median of our peer group if Cimpress does not perform well and significantly above the median for Cimpress'
extraordinary performance. In accordance with this philosophy, the Compensation Committee initially allocates the
compensation of our executive officers within the percentiles listed below, and then may use its discretion to adjust
each executive officer’s compensation to reflect other factors such as general economic conditions, the internal
equity of compensation among our executives, and the executive’s experience, role, and performance.
• Base salary of Mr. Keane, our Chief Executive Officer, at the 25th percentile of our peer group
• Base salaries of our other executive officers at the 35th percentile of our peer group and published
compensation surveys
• Annual cash compensation (base salary and annual cash incentive) of all executive officers including Mr.
Keane at the 50th percentile of our peer group and published compensation surveys
• Total compensation (base salary, annual cash incentive, and long-term incentive awards) of all executive
officers including Mr. Keane at the 75th percentile of our peer group and published compensation surveys
Base Salary
For fiscal 2015, the Compensation Committee did not increase the cash compensation, consisting of base salary
and target amount of annual cash incentive awards, of Mr. Keane or any of our other named executive officers over
their fiscal 2014 levels as part of our efforts to keep our costs within our budget for fiscal 2015 and also because the
Committee believes that the executives' compensation is competitive at the current levels.
Annual Cash Incentive Awards
The Compensation Committee grants annual cash incentive awards to our executive officers to provide an
incentive to executives to achieve financial goals that are tied to the current fiscal year. In particular, the
Compensation Committee has progressively revised the annual cash awards over the last two fiscal years to
encourage our executives to focus on Cimpress' profitability: For our fiscal year ended June 30, 2015, the annual
cash incentive awards were based 60% on Cimpress' achievement of a full-year adjusted EPS goal and 40% on
Cimpress' achievement of a full-year constant currency revenue goal determined by the Compensation Committee
based on our annual budget approved by the Supervisory Board. The awards for our fiscal year ended June 30,