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What were the NEOs’ target cash incentive amounts for 2014 and how much did they earn?
For each NEO, the target cash incentive amount is based on a percentage of the base salary paid
to him or her. The Committee, in consultation with Towers Watson and our CEO (other than with
respect to his own compensation), set annual cash incentive targets under our SVA Cash Incentive Plan
near the median level with respect to each respective position held by our NEOs relative to our peer
group. As a result, our NEOs were given the opportunity to earn above median annual cash incentive
awards for generating improvements in our SVA while at the same time facing below median awards (or
no awards at all) for failing to meet that objective. For 2014, the target cash incentive amounts for each
of our NEOs were as follows:
Name
Target % of Base Salary
Target Amount
Mark J. Gliebe
115%
$ 1,063,750
Charles A. Hinrichs
75%
$ 356,250
Jonathan J. Schlemmer
75%
$ 431,250
Peter C. Underwood
65%
$ 256,750
Terry R. Colvin
50%
$ 172,500
Based on our performance in 2014, we achieved Actual SVA of $29.8 million. This was below the
threshold performance goal, and the Committee therefore determined that no cash incentives would be
earned for 2014.
The target cash incentive levels set by the Committee did not affect decisions regarding other
compensation elements.
Long‐Term Incentives
Do you provide long‐term incentives? If so, how are they structured?
We provide long‐term incentives to our NEOs in the form of equity‐based compensation.
Consistent with our compensation philosophy, we believe long‐term equity incentives help to ensure
that our NEOs have a continuing stake in the long‐term success of our company and allow our NEOs to
earn above‐median compensation only if our shareholders experience appreciation in their equity
holdings.
Other than in the case of newly hired executives, we generally make determinations concerning
long‐term equity‐based awards in April of each year at the same time we complete our annual
performance reviews. In any event, we grant all equity‐based awards effective two days after the
release of either our quarterly or annual company financial results.