Waste Management 2014 Annual Report Download - page 37

reflect his date of departure. Mr. Weidman’s outstanding PSUs granted prior to 2014 will be paid out pro-rata,
based on actual performance achieved at the end of the applicable performance period. Stock options that had not
vested before his departure were forfeited, and PSUs awarded in 2014 were also forfeited. Mr. Weidman’s vested
stock options remained exercisable for 90 days after his departure.
Departure of Mr. Aardsma. In August 2014, we announced a consolidation and realignment of several
Corporate functions to better support achievement of the Company’s strategic goals, including cost reduction. In
connection with that effort, Mr. Aardsma, former Senior Vice President and Chief Sales and Marketing Officer,
accepted a voluntary separation arrangement. Pursuant to his existing employment agreement and equity award
agreements, Mr. Aardsma was entitled to continued vesting and exercisability of outstanding stock options for
three years following his departure, and his outstanding PSUs will be paid out pro-rata, based on actual
performance achieved at the end of the applicable performance period. Additionally, in connection with his
execution of a release and undertaking certain post-employment covenants, Mr. Aardsma is entitled to the
following payments and benefits: (i) one-half of his annual cash incentive award that would otherwise be paid
out, pro-rated to reflect his date of departure; (ii) a severance payment totaling $1,610,203 (comprised of two
times his base salary and target annual cash incentive), with half of such amount paid in a lump sum in 2014 and
the remaining half to be paid out over a two year period; (iii) 24 months of continued group health and/or dental
insurance coverage; and (iv) a cash payment of $25,000 in lieu of continued disability and life insurance
coverage.
Named Executives’ 2014 Compensation Program and Results
Base Salary
In the Spring of 2014, the Company granted a two and a half percent increase to base salaries, in line with
the Company-wide budget. Certain additional base salary increases were granted to Messrs. Trevathan, Fish and
Morris upon consideration of competitive market data, to address internal pay equity and to better reflect the
executive’s responsibilities and contributions. The table below shows 2013 base salary, percent increase and
2014 base salary for each of our named executive officers.
Named Executive Officer 2013 Base Salary Percent Increase 2014 Base Salary
Mr. Steiner ........................................ $1,161,325 3.0% $1,196,165
Mr. Trevathan ...................................... $ 600,000 5.0% $ 630,000
Mr. Fish ........................................... $ 515,000 10.0% $ 566,500
Mr. Harris ......................................... $ 552,366 2.5% $ 566,175
Mr. Morris ......................................... $ 475,000 10.0% $ 522,500
Mr. Aardsma ....................................... $ 448,837 2.5% $ 460,058
Mr. Weidman ...................................... $ 357,680 2.5% $ 366,622
Annual Cash Incentive
• Annual cash incentives were dependent on the following performance measures: Income from Operations
as a percentage of Revenue, or Income from Operations Margin (25%); Income from Operations,
excluding Depreciation and Amortization (25%); and Operating Expense, less depreciation, depletion
and amortization, as a percentage of Net Revenue, or Cost Measure (50%).
• Each of the currently-serving named executives received an annual cash incentive payment in March
2015 for fiscal year 2014 equal to 163.8% of target.
The MD&C Committee develops financial performance measures for annual cash incentive awards to drive
improvements in business operations, supporting and funding the long-term strategy of the Company. The
MD&C Committee found that the Income from Operations Margin performance measure continues to keep the
Company focused on cost control, operational improvements and yield. The MD&C Committee reintroduced the
Income from Operations, excluding Depreciation and Amortization, performance measure in the 2014 annual
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