Waste Management 2011 Annual Report Download - page 41

of the Group’s calculated results for financial reporting purposes, but which are located physically within the
Group’s geographic area. This calculation, which we refer to as the Group’s “integrated” performance measure,
is intended to encourage the operating business units within the geographic Groups to support and collaborate
with Wheelabrator’s operating business units in their area. The following table sets forth the income from
operations excluding depreciation and amortization performance measure, on a stand-alone and an integrated
basis, as set by the MD&C Committee for the respective Groups of Messrs. Trevathan, Harris and Woods:
Threshold
Performance
(60% Payment)
Target
Performance
(100% Payment)
Maximum
Performance
(200%Payment)
(In millions) (In millions) (In millions)
Southern Group (Mr. Trevathan) ................ $1,061 $1,179 $1,297
Integrated: Southern Group (Mr. Trevathan) ...... $1,137 $1,263 $1,389
Midwest Group (Mr. Harris) .................... $ 841 $ 934 $1,027
Integrated: Midwest Group (Mr. Harris) .......... N/A N/A N/A
Western Group (Mr. Woods) .................... $ 784 $ 871 $ 958
Integrated: Western Group (Mr. Woods) .......... $ 793 $ 881 $ 969
The following table sets forth the Company’s performance achieved on each of the annual cash bonus
performance goals on a Company-wide consolidated basis, the payout earned on account of such performance,
and the calculation of Mr. Steiner’s annual cash bonus payout based on such goals.
Calculation of Annual Cash Bonus Payout for Mr. Steiner:
Income from Operations
excluding Depreciation
and Amortization:
(weighted 40%)
Income from Operations
Margin:
(weighted 30%)
Pricing Improvement:
(weighted 30%)
Total
Payout
Earned
(as a
percentage
of Target)Actual
Payout
Earned Actual
Payout
Earned Actual
Payout
Earned
Company Consolidated ...... $3,290 million 62.40% 15.77% 0% 3.2% 200%
Payout Based on Performance
Measures ....................... 84.96%
Individual Performance Modifier ..... 100%
Modified Payout ..... 84.96%
The following three tables set forth the calculation of the annual cash bonus payout for Messrs. Trevathan,
Harris and Woods, respectively. As reflected below and as explained in more detail two paragraphs above, these
individuals’ payouts were based on performance achieved on a combination of Company-wide and field-level
goals and individual performance.
Calculation of Annual Cash Bonus Payout for Mr. Trevathan:
Income from Operations
excluding Depreciation
and Amortization:
(weighted 40%)
Income from Operations
Margin:
(weighted 30%)
Pricing Improvement:
(weighted 30%)
Total
Payout
Earned
(as a
percentage
of Target)Actual
Payout
Earned* Actual
Payout
Earned Actual
Payout
Earned
Company Consolidated ....... $3,290 million 62.40% 15.77% 0% 3.2% 200%
Southern Group (weighted
70%) ..................... $1,067 million 62.04%
Southern Integrated (weighted
30%) ..................... $1,150 million 64.60%
Payout Based on Performance
Measures ....................... 85.03%
Individual Performance Modifier ..... 99.9%
Modified Payout ..... 84.96%
* This calculation was prorated to take account of field-based results for the period of 2011 before
Mr. Trevathan was promoted to his current corporate-level position.
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