Waste Management 2015 Annual Report Download - page 39

The table below details the performance measures set by the MD&C Committee for purposes of the named
executive officers’ annual cash incentive for 2015.
Threshold
Performance
(60% Payment)
Target
Performance
(100% Payment)
Maximum
Performance
(200% Payment)
Income from Operations Margin ........... 15.8% 16.5% 17.2%
Income from Operations excluding
Depreciation & Amortization ............ $3.349 billion $3.57 billion $3.77 billion
Cost Measure ........................... 61.4% 60.5% - 60.9% 59.9%
The following table sets forth the Company’s performance achieved on each of the annual cash incentive
performance measures and the payout earned on account of such performance.
Income from Operations
Margin (weighted 25%)
Income from Operations, excluding
Depreciation & Amortization
(weighted 25%) Cost Measure (weighted 50%) Total
Payout Earned
(as a percentage
of Target)Actual Payout Earned Actual Payout Earned Actual Payout Earned
16.9% 158.17% $3.436 billion 75.83% 60.55% 100.0% 108.5%
As discussed above, the MD&C Committee has discretion to make adjustments to the performance
calculations for unusual or otherwise non-operational matters in line with its policy on calculation adjustments.
The calculation of 2015 annual cash incentive performance measures was made on a basis consistent with the
Company’s reporting of its 2015 financial results, including exclusion of asset impairments and unusual items,
restructuring charges and settlement payments in connection with withdrawal from multiemployer pension plans.
The 2015 cash incentive performance calculations were not otherwise adjusted.
Target annual cash incentives are a specified percentage of the executives’ base salary. The following table
shows each named executive’s target percentage of base salary for 2015 and annual cash incentive for 2015 paid
in March 2016.
Named Executive Officer Target Percentage of Base Salary
Annual Cash
Incentive
For 20151
Mr. Steiner .............................................. 135 $1,800,986
Mr. Trevathan ............................................ 90 $ 638,623
Mr. Fish ................................................ 90 $ 595,320
Mr. Harris2.............................................. 80 $ 510,496
Mr. Morris2.............................................. 80 $ 491,544
(1) Base salary increases for 2015 were not implemented until Spring of 2015; accordingly, the calculations of
annual cash incentive payouts, as a percentage of base salary, were made using the named executive’s actual
base salary for 2015.
(2) For 2015, the target percentage of base salary was increased from 75% to 80% for Messrs. Harris and
Morris. These changes were made to better position the executives around the competitive median and to
reflect their contributions.
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