Summary
Mastercard Inc. (MA) filed an 8-K on February 4, 2016, detailing the performance targets for its Senior Executive Annual Incentive Compensation Plan (SEAICP) for the year ending December 31, 2016. These targets are crucial as they will determine the cash bonus awards for the company's principal executive officer, principal financial officer, and other named executive officers. The funding of the bonus pool is weighted two-thirds on net income achievement and one-third on net revenue achievement, with the Compensation Committee retaining discretion to reduce the total award amount.
Key Highlights
- 1Approval of 2016 performance targets for executive cash bonus awards under the SEAICP.
- 2Bonus pool funding is based on achieving predetermined net income (2/3 weighting) and net revenue (1/3 weighting) targets.
- 3Individual cash incentive award percentages for named executive officers range from 62.5% to 500% of base salary, depending on performance level achieved (Threshold, Target, Maximum).
- 4Performance below the threshold level will result in no cash bonus payout.
- 5Chris McWilton, a former Named Executive Officer, is no longer eligible for 2016 performance targets due to his departure on December 31, 2015.
- 6The Compensation Committee retains discretion to reduce the total SEAICP award pool.