Waste Management 2011 Annual Report Download - page 35

accounts that mirror selected investment funds in our 401(k) plan, although the amounts deferred are not actually
invested in the funds. We believe that providing a program that allows and encourages planning for retirement is
a key factor in our ability to attract and retain talent. Additional details on the plan can be found in the
Nonqualified Deferred Compensation table and the footnotes to the table on page 44.
Perquisites. Based on a periodic security assessment by an outside consultant, for security purposes, the
Company requires the Chief Executive Officer and President to use the Company’s aircraft for business and
personal use. Use of the Company’s aircraft is permitted for other employees’ personal use only with Chief
Executive Officer approval in special circumstances, which seldom occurs. The value of our named executives’
personal use of the Company’s airplanes is treated as taxable income to the respective executive in accordance
with IRS regulations using the Standard Industry Fare Level formula. This is a different amount than we disclose
in the Summary Compensation Table, which is based on the SEC requirement to report the incremental cost to us
of their use. We also reimburse the cost of physical examinations for our senior executives, as we believe it is
beneficial to the Company to facilitate its executives receiving preventative healthcare. Other than as described in
this paragraph, we have eliminated all perquisites for our named executive officers.
Our Named Executive Officers
Our named executive officers for 2011 are:
• Mr. David Steiner- has served Waste Management as Chief Executive Officer since 2004 and President
since June 2010.
• Mr. Steven Preston- recruited to join Waste Management as Executive Vice President – Finance,
Recycling and Energy Services in October 2011 and became Waste Management’s principal financial
officer upon Mr. Robert Simpson’s retirement. Mr. Preston was previously President and Chief Executive
Officer of Oakleaf Global Holdings, which Waste Management acquired in July 2011.
• Mr. Robert Simpson- served Waste Management as Senior Vice President and Chief Financial Officer
from March 2004 until his retirement effective September 30, 2011.
• Mr. James Trevathan- was appointed to the new position of Executive Vice President – Growth,
Innovation and Field Support in June 2011 after having most recently served Waste Management as
Senior Vice President of the Southern Group since 2007.
• Mr. Jeff Harris- has served Waste Management as Senior Vice President of the Midwest Group since
April 2006.
• Mr. Duane Woods- has served Waste Management as Senior Vice President of the Western Group since
July 2004.
How Named Executive Officer Compensation Decisions are Made
The MD&C Committee meets several times each year to perform its responsibilities as delegated by the
Board of Directors and as set forth in the MD&C Committee’s charter. These responsibilities include evaluating
and approving the Company’s compensation philosophy, policies, plans and programs for our named executive
officers.
In the performance of its duties, the MD&C Committee regularly reviews the total compensation, including
the base salary, target annual bonus award opportunities, long-term incentive award opportunities and other
benefits, including potential severance payments for each of our named executive officers. At a regularly
scheduled meeting each year, the MD&C Committee reviews our named executives’ total compensation and
compares that compensation to the competitive market, as discussed below. In the first quarter of each year, the
MD&C Committee meets to determine salary increases, if any, for the named executive officers; verifies the
results of the Company’s performance for annual incentive and performance share unit calculations; reviews the
individual annual incentive targets for the current year as a percent of salary for each of the named executive
officers; and makes decisions on granting long-term equity awards.
Compensation Consultant. The MD&C Committee uses several resources in its analysis of the appropriate
compensation for the named executive officers. The MD&C Committee selects and employs an independent
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