Pitney Bowes (PBI)

Compensation should be tied to performance and long-term stockholder return

We link compensation, including executive compensation, to the performance of the company as a whole as well as to individual performance. In particular, the short-term, or annual, incentive compensation element for each of the named executive officers is tied predominantly to enterprise performance during the current fiscal year, and the long-term incentive compensation element is tied to long-term enterprise performance. The named executive officers are the chief executive officer, the chief financial officer, the former chief financial officer and the three other highest paid executive officers. We evaluate enterprise performance using a number of criteria, including, for example,

For information on GAAP / non-GAAP adjustments, please see page 22.

In addition, we use the company’s total stockholder return relative to the total stockholder return for the Standard & Poor’s 500 (“S&P 500”) as a modifier in the calculation of long-term incentive payments. Under the company’s plans,

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Compensation should be tied to performance and long-term stockholder return

We link compensation, including executive compensation, to the performance of the company as a whole as well as to individual performance. In particular, the short-term, or annual, incentive compensation element for each of the named officers is tied predominantly to enterprise performance during the current fiscal year, and the long-term incentive compensation element is tied to long-term enterprise performance. We evaluate enterprise performance using a number of criteria, including, for example,

• organic growth,

• adjusted earnings per share,

• adjusted earnings before interest and taxes, and

• adjusted free cash flow.

In addition, we use the company’s total stockholder return relative to the total stockholder return for the Standard & Poor’s (“S&P”) 500 as a modifier in the calculation of annual and long-term incentive payments. Under the company’s plans, performance above target results in increased total compensation, and performance below target results in decreased total compensation. For disclosure of annual and long-term goals, please see pages 23 and 25.

Compensation should be tied to performance and long-term stockholder return

We link compensation, including executive compensation, to the performance of the company as a whole as well as individual performance. In particular, the short-term, or annual, incentive compensation element for each of the named executive officers is tied predominantly to enterprise performance during the current fiscal year, and the long-term incentive compensation element is tied to long-term enterprise performance. We evaluate enterprise performance using a number of criteria, including, for example,

• adjusted earnings per share,
• adjusted free cash flow and
• total stockholder return.

Under the company’s plans, performance above targeted standards results in increased total compensation, and performance below targeted or benchmarked standards results in decreased total compensation.