This excerpt taken from the BPOP DEF 14A filed Mar 13, 2009.
Objectives of the Executive Compensation Program
The Corporations total compensation philosophy is designed to provide higher pay for superior performance, which the Corporation feels is consistent with the goal of building long-term value for shareholders, without encouraging executives to take unnecessary and excessive risks. The compensation programs goals are to:
The compensation analysis begins with a review of the Corporations strategic objectives and business plans, followed by an analysis of each NEOs scope of responsibility, market competitive assessments of comparable positions at the peer institutions, and the relationship between pay and performance (i.e., degree of achievement of the Corporations short-term results and long-term growth objectives). The Corporation evaluates whether its compensation programs meet the Corporations goals by monitoring engagement and retention of executives, and by assessing the relationship between company and individual performance and actual payouts.
25 POPULAR, INC. 2009 PROXY STATEMENT