Pitney Bowes (PBI)

Compensation should reflect leadership position and responsibility, and performance-based compensation should be a greater part of total compensation for more senior positions

It is our belief that employees with higher levels of responsibility and a greater ability to influence enterprise results should have a greater percentage of variable total compensation. For the named executive officers, at target, the compensation mix ranges from 14% base salary, 21% annual incentive and 65% long-term incentives to 38% base salary, 26% annual incentive and 36% long-term incentives. Our consideration of individual pay levels, which are base salary and short-term and long-term incentive targets, typically includes factors such as:

We target pay levels to be at 100% of the median of comparative market total compensation, which includes base salary, short-term and long-term target incentives for each position.

Compensation should reflect leadership position and responsibility, and performance-based compensation should be a greater part of total compensation for more senior positions

It is our belief that employees with higher levels of responsibility and a greater ability to influence enterprise results should have a greater percentage of variable total compensation. Our consideration of individual pay levels typically includes factors such as:

• experience in the position,

• performance,

• demonstrated leadership,

• potential to enhance long-term stockholder value,

• recruiting and retention needs,

• internal equity,

• external marketplace,

• current salary,

• salary history, and

• prior incentive awards.

Compensation should reflect leadership position and responsibility, and performance-based compensation should be a greater part of total compensation for more senior positions

It is our belief that employees with higher levels of responsibility and a greater ability to influence enterprise results should have a greater percentage of variable total compensation. Our consideration of individual pay levels typically includes factors such as:

• experience in the position,
• performance,
• demonstrated leadership,
• potential to enhance long-term stockholder value,
• recruiting and retention needs,
• internal equity,
• external marketplace,
• current salary,
• salary history, and
• prior incentive awards.