Summary
Mastercard Incorporated (MA) filed an 8-K on February 8, 2007, reporting on key executive compensation and board appointments. The Human Resources and Compensation Committee approved performance targets for the Senior Executive Annual Incentive Compensation Plan (SEAICP) for the fiscal year 2007. These targets, based on net income and return on equity (ROE), will determine cash bonus awards for named executive officers. The approved targets range from a threshold to a maximum payout as a percentage of base salary, with performance below the threshold resulting in no bonus. Additionally, the Board of Directors appointed two new members, Nancy Karch and Tan Teong Hean, to serve on key board committees. Ms. Karch will join the Audit Committee and the Nominating and Corporate Governance Committee, while Mr. Tan will serve on the Compensation Committee. These appointments follow their election to the Board of Directors on January 17, 2007, indicating ongoing adjustments to the company's governance structure.
Key Highlights
- 1Mastercard approved 2007 performance targets for executive cash bonus awards under its Senior Executive Annual Incentive Compensation Plan (SEAICP).
- 2Bonus payouts are contingent on achieving predetermined net income and return on equity (ROE) targets for fiscal year 2007.
- 3Performance below a 'threshold' level will result in no cash bonus payout for executive officers.
- 4Named executive officers have varying potential bonus award percentages, ranging from 45% to 75% of base salary at threshold, and up to 225% to 375% at maximum.
- 5Nancy Karch has been appointed to the Audit Committee and the Nominating and Corporate Governance Committee of the Board.
- 6Tan Teong Hean has been appointed to the Compensation Committee of the Board.
- 7These board appointments follow the election of Ms. Karch and Mr. Tan to the Board of Directors on January 17, 2007.