TSYS » Topics » Provide compensation opportunities competitive with market levels.

This excerpt taken from the TSYS DEF 14A filed Apr 30, 2009.
Provide compensation opportunities competitive with market levels.
To attract and retain executives with the ability and the experience necessary to lead us and deliver strong performance to our stockholders, we strive to provide a total compensation package that is competitive with total compensation provided by our industry peer group, which we construct to include the following companies:

•   Neustar , Inc. 
•   Sybase, Inc.
•   NCI Inc. 
•   Globecomm Systems, Inc.
•   Comverse Technology, Inc. 
•   ViaSat, Inc.
•   Openwave Systems, Inc. 
•   Syniverse Holdings, Inc.
•   Comtech Telecommunications Corp.
We chose these companies because they are publicly traded companies in the commercial and technology sectors in which we operate and/or they are close to our size in terms of revenue and market capitalization. We believe that such companies provide an appropriate peer group because they consist of similar organizations against whom we compete for executive talent. We annually review the companies in our peer group and add or remove companies as necessary to insure that our peer group comparisons are meaningful. We changed our peer group slightly from the one used in 2007 by adding Comtech Telecommunications Corp. because its mobile communications systems and satellite services business lines are comparable to our Government Segment business. We used this same peer group when constructing the “performance graph” that appears in our Annual Report.
For each Named Executive Officer, we consider the relevance of data of our peer group, considering:
  •  Our business need for the Named Executive Officer’s skills;
  •  The contributions that the Named Executive Officer has made or we believe will make to our success;
  •  The transferability of the Named Executive Officer’s managerial skills to other potential employers;
  •  The relevance of the Named Executive Officer’s experience to other potential employers, particularly in the telecommunications technology industry; and
  •  The readiness of the Named Executive Officer to assume a more significant role with another potential employer.
Base Salaries
We target base salaries to approximate the market median (50th percentile) for our peer group. To arrive at the 50th percentile for the base salaries of our Named Executive Officers, we consider the median of the data gathered from proxy statements for the positions of the Named Executive Officers in relation to the Named Executive Officers of our peer group for each position. We also use data from publicly available surveys, when available, in addition to our peer group, in order to have a more complete overview of the competitive market for our executive talent.
Cash Incentives
Incentive award opportunities are targeted to result in Bonus Opportunity Plan payments equal to the market median of cash incentives paid by our peer group assuming our target business objectives are achieved.
Long-Term Equity Compensation
Annual equity grants are targeted at 75 percent of the median level of market practices for the Named Executive Officer, but may be adjusted in the discretion of the Compensation Committee based on individual performance or other factors. The allocation between long-term and currently paid out compensation reflects



consideration of how our peer companies use long-term and currently paid compensation to pay their Named Executive Officers because we feel it is important to maintain parity with competitors for our management team.
Total Compensation
Total compensation is targeted at the 75th percentile of our peer group, considering individual performance and experience. The targets for compensation are set at the beginning of each fiscal year. The Company’s outstanding operational performance achieved in fiscal year 2008 resulted in the Named Executive Officers earning total compensation which significantly exceeded the targeted compensation set forth at the beginning of the year.
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