This excerpt taken from the PBI 10-K filed Aug 14, 2006.
2005 LONG-TERM INCENTIVE GRANTS
Performance or Other
Number of
Period Until
Estimated Future Payouts
Cash Incentive
Maturation or
Threshold
Target
Maximum
Name
Units(1)
Payout(1)
CIU ($)
CIU ($)
CIU ($)
Michael J. Critelli
1,500,000
December 31, 2007
225,000
1,500,000
3,375,000
Murray D. Martin
700,000
December 31, 2007
105,000
700,000
1,575,000
Bruce P. Nolop
550,000
December 31, 2007
82,500
550,000
1,237,500
Michele Coleman Mayes
200,000
December 31, 2007
30,000
200,000
450,000
Johnna G. Torsone
160,000
December 31, 2007
24,000
160,000
360,000
(1)
CIUs granted under the Key Employees’ Incentive Plan (“KEIP”) represent a right to receive cash payments if certain objective corporate performance criteria are achieved over the three-year period ending
December 31, 2007. CIUs that will mature on December 31, 2007, will pay $0/CIU if the threshold performance levels are not met. As part of its 2004 review, the Executive Compensation Committee concluded that a Total Stockholder Return
(“TSR”) modifier should be incorporated in the calculation of the CIU value beginning with the 2005-2007 cycle. The objective of the TSR modifier is to balance the measurement of performance on the internal financial objectives with the
measurement of the stockholder value created by those objectives.
For the 2005-2007 cycle the unit value at target will be $1.00. The unit value based on internal financial performance will range from $0.20 at threshold performance to $1.80 for maximum performance. The unit
value based on financial performance will then be modified by up to 25% either upwards or downwards based on the company’s three-year TSR performance compared to the three-year TSR performance of the companies in the S&P 500. The unit value
as modified by the company’s three-year TSR performance thus ranges from $0.15 at threshold performance to $2.25 at maximum performance.
