Summary
Mastercard Inc. (MA) filed an 8-K on February 9, 2017, detailing the performance targets for its Senior Executive Annual Incentive Compensation Plan (SEAICP) for the fiscal year ending December 31, 2017. These targets are crucial for determining the cash bonus awards for its principal executive officer, principal financial officer, and other named executive officers. The bonus pool funding is weighted two-thirds on net income performance and one-third on net revenue performance against predetermined targets. This filing provides transparency into how executive compensation is tied to company financial results, a key factor for investor assessment of management alignment and corporate governance.
Key Highlights
- 1Mastercard has established 2017 performance targets for its executive annual incentive compensation plan (SEAICP).
- 2Bonus payouts are contingent upon achieving predetermined net income and net revenue targets.
- 3The funding of the 2017 SEAICP bonus pool is weighted: two-thirds based on net income performance and one-third on net revenue performance.
- 4Individual cash incentive awards for named executive officers are set as a percentage of their base salary, with varying potential payouts based on performance levels (Threshold, Target, Maximum).
- 5CEO Ajay Banga has the highest potential payout at 500% of base salary at maximum performance, while other listed officers have a maximum of 312.5%.
- 6Performance below the 'Threshold' level will result in no cash bonus payout.
- 7The Compensation Committee retains discretion to reduce the total amount awarded under the SEAICP.