Waste Management 2013 Annual Report Download - page 38

Company Name
Composite Percentile Rank
Size Profitability Growth TSR
American Electric Power ............................... 56% 51% 59% 61%
Avis Budget Group.................................... 9% 0% 22% 53%
Baker Hughes ........................................ 68% 45% 63% 42%
C.H. Robinson WW ................................... 12% 69% 48% 25%
CSX ............................................... 57% 67% 50% 61%
Entergy ............................................. 43% 50% 23% 36%
Fedex .............................................. 80% 56% 77% 25%
Grainger (WW) ...................................... 19% 72% 70% 97%
Halliburton .......................................... 76% 78% 66% 44%
Hertz ............................................... 23% 8% 30% 47%
Nextera Energy ....................................... 65% 52% 35% 58%
Norfolk Southern ..................................... 55% 66% 41% 72%
Republic Services ..................................... 35% 26% 67% 25%
Ryder System ........................................ 12% 17% 37% 53%
Southern ............................................ 81% 57% 46% 72%
Southwest Airlines .................................... 38% 12% 51% 0%
Sysco .............................................. 49% 63% 30% 44%
Union Pacific ........................................ 85% 79% 62% 81%
UPS................................................ 85% 82% 55% 53%
Waste Management 47% 48% 26% 22%
The general industry data and the comparison group data are blended when composing the competitive
analysis, when possible, such that the combined general industry data and the comparison group are each
weighted 50%. The competitive analysis showed that the Company’s named executives’ 2013 total direct
compensation opportunities were positioned at median for our President and Chief Executive Officer and did not
exceed the median range for our other named executive officers. For competitive comparisons, the MD&C
Committee has determined that total direct compensation packages for our named executive officers within a
range of plus or minus 20% of the median total compensation of the competitive analysis is appropriate. In
making these determinations, total direct compensation consists of base salary, target annual cash incentive, and
the annualized grant date fair value of long-term equity incentive awards.
Allocation of Compensation Elements and Tally Sheets. The MD&C Committee considers the forms in
which total compensation will be paid to executive officers and seeks to achieve an appropriate balance between
base salary, annual cash incentive compensation and long-term incentive compensation. The MD&C Committee
determines the size of each element based primarily on comparison group data and individual and Company
performance. The percentage of compensation that is contingent on achievement of performance criteria typically
increases in correlation to an executive officer’s responsibilities within the Company, with performance-based
incentive compensation making up a greater percentage of total compensation for our most senior executive
officers. Additionally, as an executive becomes more senior, a greater percentage of the executive’s
compensation shifts away from short-term to long-term incentive awards.
The MD&C Committee uses tally sheets to review the compensation of our named executive officers, which
show the cumulative impact of all elements of compensation. These tally sheets include detailed information and
dollar amounts for each component of compensation, the value of all equity held by each named executive, and
the value of welfare and retirement benefits and severance payments. Tally sheets provide the MD&C Committee
with the relevant information necessary to determine whether the balance between long-term and short-term
compensation, as well as fixed and variable compensation, is consistent with the overall compensation
philosophy of the Company. This information is also useful in the MD&C Committee’s analysis of whether total
direct compensation provides a compensation package that is appropriate and competitive. Tally sheets are
provided annually to the full Board of Directors.
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