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our CEO’s compensation (as shown in the Summary Compensation Table and on a realizable basis as
described above) over our fiscal years 2012 through 2014:
As described in footnote 3 to the Summary Compensation Table, a significant portion of 2014
Realizable Pay and Summary Compensation Table Pay is attributable to an actuarial calculation of the
change in the accumulated benefit obligations under the Target Supplemental Retirement Plan, which
increased by more than double the 2013 rate. Without the larger actuarial increase in such accumulated
benefit obligations in 2014 compared to 2013, 2014 Realizable Pay and Summary Compensation Table
Pay would have decreased in 2014 compared to 2013.
Since you have a pay‐for‐performance compensation philosophy, what percentage of your NEOs’
target compensation is “at risk”?
To focus on both our short and long‐term success, our NEOs’ target compensation includes a
significant portion—more than 60%, on average—that is “at risk” because the value of such
compensation is determined based on the achievement of specified results or subject to forfeiture. This
“at risk” compensation includes compensation elements intended to reward the achievement of both
short‐ and long‐term financial goals. If such goals are not achieved, then performance‐related
compensation will decrease. If goals are exceeded, then performance‐related compensation will
increase.
Payments under our SVA Cash Incentive Plan are “at risk” because the payments are dependent
on achievement of one‐year performance goals. In addition, compensation paid in the form of equity
awards, such as RSUs, SARs and PSUs, instead of cash is at‐risk because its value varies with changes in
the stock price. By creating a total compensation package where a considerable percentage is paid in
equity awards that are subject to vesting over multiple years or dependent on achieving multi‐year
performance goals, our executive officers have a significant stake in the long‐term success of the
Company and gain financially along with our shareholders.
0%
5%
10%
15%
20%
25%
30%
35%
40%
$0
$2,500
$5,000
$7,500
$10,000
2012
2013
2014
Total Shareholder Return
Total CEO Pay (Thousands)
Year
CEO Pay vs TSR
Realizable Pay
SCT Pay
Total Shareholder Return