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We have implemented stock ownership guidelines for certain executives, including our NEOs,
which we believe help to focus our executives on long‐term stock price appreciation and
sustainability.
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We have adopted a clawback policy requiring us to recoup incentive compensation paid to
our executive officers on the basis of financial results that are subsequently subject to a
material restatement.
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We have adopted a policy prohibiting our employees, including our NEOs, from trading in
puts, calls and other derivative securities relating to our common stock. The prohibition
includes the purchase of any financial instruments designed to hedge or offset any decease
in the market value of our common stock.
In addition to the SVA‐based annual cash incentive plans discussed above, we maintain revenue‐
based sales incentive compensation programs for certain of our non‐executive officer employees at
select business units or functions. The eligible employees are generally engaged in sales functions and
our general philosophy regarding their compensation is to provide a portion of their compensation on a
variable basis to create incentives for them to bring in new customers and/or increase sales to existing
customers. We designed the programs to limit the risks that participants will seek to increase their
payouts through low‐quality sales or short‐term revenue accompanied by long‐term costs or additional
risks by capping the amount of compensation participants may earn under the programs and by not
giving the individual participants final authority over which sales are accepted. We monitor the
programs periodically to determine whether our risk‐management objectives are being addressed by
these features and intend to modify the programs if necessary to reflect changes to our risk profile.