2018 Guide to Effective Proxies

2.18 Summary compensation table | 505 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES PAYCOM SOFTWARE, INC. PSEG RR DONNELLEY S&P GLOBAL, INC. 2018PROXYSTATEMENT Compensation of Executive Officers Summary Compensation Table for Fiscal Years Ended December 31, 2017, 2016 and 2015 The following table contains information regarding compensation that was paid to our NEOs for the fiscal years ended December31,2017,2016and2015. Year Salary ($) Stock/ Unit Awards (1) ($) Non-Equity IncentivePlan Compensation (2) ($) AllOther Compensation ($) Total ($) ChadRichison (3) Presidentand ChiefExecutiveOfficer 2017 641,959 7,283,990 (4) 1,008,768 444,166 (5) 9,378,883 2016 618,199 7,700,000 1,044,273 205,370 9,567,842 2015 601,321 3,430,000 1,110,394 204,667 5,346,382 CraigE.Boelte ChiefFinancialOfficer 2017 337,169 2,081,140 (4) 529,825 31,149 (6) 2,979,283 2016 324,690 2,200,000 548,472 30,751 3,103,913 2015 316,947 980,000 583,200 32,067 1,912,214 JeffreyD.York ChiefSalesOfficer 2017 424,810 2,081,140 (4) 500,644 30,808 (7) 3,037,402 2016 409,087 2,200,000 518,264 31,258 3,158,609 2015 404,530 980,000 566,693 32,615 1,983,838 StaceyPezold (8) ChiefLearningOfficer 2017 293,869 520,285 (4) 181,200 10,547 (9) 1,005,901 2016 288,632 2,200,000 163,826 13,275 2,665,733 2015 275,809 980,000 154,552 10,403 1,420,764 WilliamX.KerberIII (10) FormerChiefInformationOfficer 2017 273,970 2,081,140 (4) — 26,265 (11) 2,381,375 2016 334,710 2,200,000 424,033 29,663 2,988,406 2015 330,982 980,000 463,661 21,294 1,795,937 (1) Amounts shown do not reflect compensation actually received by the NEOs. Rather, the amounts represent the aggregate grant datefairvalueofrestrictedstockgrantedtotheNEOin2015,2016and2017,ineachcasecomputedinaccordancewithASC718, withtheexceptionthattheamountshownassumesnoforfeitures.Adiscussionoftheassumptionsusedinthecalculationofthese amounts is included in Note 10, “Stockholders’ Equity and Stock-Based Compensation” in the annual consolidated financial statementsincludedintheForm10-KfiledwiththeSEConFebruary14,2018. (2) Amounts shown represent bonuses earned by (i) each of Messrs. Richison, Boelte, York and Kerber based on the achievement of performancegoalstiedtorevenuegrowthin2015andperformancegoalstiedtorevenuegrowthandAdjustedEBITDAin2016and 2017and(ii)Mrs.Pezoldbasedontheachievementofperformancegoalstiedtoannualrevenueretentionin2015,2016and2017. Bonuses paid to Messrs. Richison, Boelte, York and Kerber for 2015, 2016 and 2017 performance were determined in accordance with the terms of the Annual Incentive Plan. Mr. Kerber was not eligible for a bonus in 2017 due to his resignation. See “CompensationDiscussionandAnalysis—CashCompensation”foradditionalinformation. (3) All amounts shown reflect compensation paid to Mr. Richison for his service as our President and Chief Executive Officer. Mr.RichisondidnotreceiveadditionalcompensationforhisserviceasadirectororChairmanoftheBoardofDirectors. (4) Represents the aggregate grant date fair value of shares of 2017 Restricted Stock issued to the NEO on April 26, 2017. See “CompensationDiscussionandAnalysis—Long-TermIncentiveCompensation—RestrictedStockAwards.” (5) Consistsof(i)$233,000forMr.Richison’sHSRfilingfeeandrelatedtaxgross-up,(ii)$165,314forMr.Richison’spersonaluseofa corporate aircraft in accordance with the terms of his employment agreement, (iii) $23,431 in automobile lease payments, (iv)countryclubdues,(v)aretainerforasupplementalmedicalplanand(vi)Companycontributionstoa401(k)profitsharingplanfor the benefit of Mr. Richison. The incremental cost for personal use of corporate aircraft was calculated based on the total personal travelflighthoursmultipliedbytheestimatedhourlyaircraftoperatingcosts(includingvariablefuelchargesandaproratedportionof amonthlymanagementfee).Whenusingthecorporateaircraftforbusinesstravel,ifspaceallows,wemaypermitMr.Richisonto 39 ExecutiveCompensation 66 PSEG2018ProxyStatement 2017 SUMMARY COMPENSATION TABLE The following table summarizes the compensation of ourNEOs for the years shown.TheNEOs are ourCEO,CFO and three most highly compensated executive officers in 2017, plus a retired executive officerwhowould have been among the threemost highly compensated executive officers had he been employed by us at year-end. Name and PrincipalPosition (1) Year Salary ($) (2) Bonus ($) Stock Awards ($) (3) Option Awards ($) Non-Equity IncentivePlan Compensation ($) (4) Change in Pension Valueand Non-Qualified Deferred Compensation Earnings ($) (5) AllOther Compensation ($) (6,7& 8) Total ($) Ralph Izzo 2017 1,300,000 6,500,069 1,803,800 963,000 54,246 10,621,115 Chairmanof theBoard, 2016 1,298,269 6,375,044 1,513,200 603,000 78,466 9,867,979 President&CEO 2015 1,245,386 5,725,546 2,085,000 - 151,315 9,207,247 DanielJ.Cregg 2017 585,000 1,000,041 511,200 483,000 28,960 2,608,201 EVP&CFO 2016 520,000 850,045 370,500 320,000 29,154 2,089,699 2015 333,024 174,002 261,400 63,000 14,627 846,053 RalphA.LaRossa 2017 704,808 1,300,050 602,000 777,000 47,590 3,431,448 President&COO 2016 684,308 1,250,016 503,500 525,000 40,128 3,002,952 (Power) 2015 663,770 1,249,548 703,300 215,000 45,326 2,876,944 WilliamLevis 2017 527,875 1,250,041 425,600 402,000 194,739 2,800,255 President&COO 2016 668,825 1,250,016 467,000 252,000 52,751 2,690,592 (Power) 2015 650,000 1,249,548 653,300 - 36,968 2,589,816 TamaraL.Linde 2017 560,769 1,000,041 444,400 528,000 29,345 2,562,555 EVP& 2016 533,789 850,045 330,400 355,000 30,640 2,099,874 GeneralCounsel 2015 499,078 698,931 451,800 124,000 28,798 1,802,607 DerekDiRisio 2017 381,243 425,059 274,800 438,000 25,960 1,545,062 President (Services) (1) Mr.Creggwas elected tohis current positioneffectiveOctober8,2015.2015amounts shown forMr.Cregg includeamountswith respect tohis previous positionwith us.Mr. LaRossawas electedPresident andCOOofPowereffectiveOctober2,2017;prior to thathewas PresidentandCOOofPSE&G.Mr. Levis retiredeffectiveOctober2, 2017.Mr.DiRisiowas notanNEO in2016 or2015. (2) Amounts shownareactual payments basedon annualized salary.Therefore,actual paid salaries shown herediffer fromannual salaries shown in theCD&A.Mr.Creggdeferred$232,000and$150,000 ofhis 2017and2016 salary, respectively. (3) Theamounts shown reflect thegrant date fair value of the awards.For adiscussionof theassumptionsmade in valuation, seeNote18 to theConsolidatedFinancialStatements included inourForm10-K.2017,2016and 2015 LTIPawardsweregranted inFebruary of each year.2017awards are shown in theGrants ofPlanBasedAwardsTable anddiscussed in theCD&Aand consistofPSUs andRSUs. PSU value is shownat the target amount.Actual valueof the shares receivedupon vestingofRSUs depends upon the priceofour CommonStock.Payout value of thePSUs earnedat the conclusionof the three-year performanceperiodmay be less thanorexceed the grant date fair value,dependentupon achievingTSRandROICperformance factors.Moredetailed information is provided in theCD&A. Mr.Levis’ unvestedPSUs andRSUswere forfeiteduponhis retirement as explained in theOutstandingEquityAwards atYear-EndTable onpages 70-71.ForfeitureofMr. Levis’ vested2017PSUs andRSUs are described inConflicts of Interest onpage22.The respective amounts below represent the grantdate fair value ofPSUs at targetandmaximumamounts. 2017 2016 2015 Valueat Target (100%) Valueat Maximum (200%) Valueat Target (100%) Valueat Maximum (200%) Valueat Target (100%) Valueat Maximum (200%) ($) ($) ($) ($) ($) ($) Ralph Izzo 4,550,036 9,100,072 4,085,006 8,170,012 3,435,758 6,871,516 DanielJ.Cregg 700,016 1,400,032 510,035 1,020,070 86,772 173,544 RalphA.LaRossa 910,034 1,820,068 750,014 1,500,028 749,958 1,499,916 WilliamLevis 875,009 1,750,018 750,014 1,500,028 749,958 1,499,916 TamaraL.Linde 700,016 1,400,032 510,035 1,020,070 419,398 838,796 DerekDiRisio 276,288 552,576 - - - - (4) As discussed in theCD&A,amounts awardedwere earnedunder theSMICP (andMICP for 2015 forMr.Cregg)and determinedandpaid in the following year.Mr.Cregg deferred$204,480and $111,150of his 2017and2016SMICP, respectively. EXECUTIVECOMPENSATIONTABLES EXECUTIVE COMPENSATION TABLES 2017SummaryCompensationTable Thefollowingtablecontainsinformationconcerningcompensationpaidoraccruedtothenamedexecutiveoffi- cersforservicesrenderedinallcapacitiestotheCompanyin2017,2016and2015: NameandPrincipal Position Year Salary ($) Bonus ($) (1) Stock Awards ($) (2) Non-Equity Incentive Plan Compensation ($) (3) Changein Pension Value ($) (4) AllOther Compensation ($) (5) Total ($) DouglasL.Peterson 2017 $1,000,000 — $6,000,000 $3,240,000 — $479,216 $10,719,216 PresidentandChief ExecutiveOfficer 2016 $1,000,000 — $4,800,000 $2,890,000 — $355,769 $9,045,769 2015 $975,000 — $4,700,000 $1,935,000 — $164,273 $7,774,273 EwoutL.Steenbergen (6) 2017 $750,000 — $1,800,000 $1,950,000 — $63,041 $4,563,041 EVP,ChiefFinancialOfficer 2016 $99,432 $1,500,000 $4,250,000 — — $2,100 $5,851,532 JohnL.Berisford 2017 $600,000 — $1,300,000 $1,300,000 $4,833 $180,138 $3,384,971 President,S&PGlobal Ratings 2016 $600,000 — $1,000,000 $830,000 $3,325 $129,093 $2,562,418 2015 $514,375 — $1,300,000 $580,500 — $85,404 $2,480,279 MichaelA.Chinn 2017 $537,500 — $1,050,000 $1,300,000 — $100,945 $2,988,445 President,S&PGlobal MarketIntelligenceandEVP, DataandTechnology Innovation,S&PGlobal 2016 $505,769 — $750,000 $750,000 — $3,000 $2,008,769 2015 $152,308 — $1,904,425 $485,000 — $1,500 $2,543,233 AlexJ.Matturri 2017 $537,500 — $400,000 $1,788,000 $36,080 $151,657 $2,913,237 ChiefExecutive 2016 $493,750 — $320,000 $1,958,000 $85,527 $131,176 $2,988,453 Officer,S&PDow JonesIndices 2015 $466,250 — $280,000 $1,646,625 — $69,089 $2,461,964 (1) ForMr.Steenbergen,thisamountreflectsthepaymentof(i)a$500,000signingbonusinconsiderationof thecompensationfromhisprioremployerthatwasforfeitedwhenhewashiredbytheCompanyin2016, subjectto100%repaymentuponavoluntaryseparationfromtheCompanywithin12months,and(ii)a guaranteedbonusof$1,000,000,asMr.Steenbergendidnotreceivea2016short-termincentiveaward duetothetimingofhishire. (2) Theamountsreportedinthiscolumnreflecttheaggregategrantdatefairvalueoftheequityawards grantedtothenamedexecutiveofficersintherelevantyear,whichmayincludeperformanceshareunits (“PSUs”),restrictedstockunits(“RSUs”)andrestrictedstockawards,asapplicable,grantedunderthe Company’s2002StockIncentivePlan.Theassumptionsusedtocalculatetheawardswereinaccordance withFinancialAccountingStandardsBoardAccountingStandardsCodification(“FASBASC”)Topic718, StockCompensation,asdisclosedinFootnote8totheConsolidatedFinancialStatements,whichappearsin theCompany’sForm10-Kforthe2017yearfiledwiththeSEConFebruary9,2018.Theamountsforthe PSUsgrantedin2017werecalculatedbasedontheprobableoutcomeofperformanceconditionsasofthe grantdatecomputedinaccordancewithFASBASCTopic718excludingtheeffectofestimatedforfeitures. 68 2018ProxyStatement Executive Compensation TheSummaryCompensationTableprovidescompensationinformationaboutourprincipalexecutiveofficer,principalfinancialofficer, andthethreemosthighlycompensatedexecutiveofficersotherthantheprincipalexecutiveofficerandprincipalfinancialofficerasof December31,2017. 2017 SUMMARY COMPENSATION TABLE NameandPrincipal Position Year Salary ($) Bonus ($) (1) Stock Awards ($) (2) Option Awards ($) Non-Equity Incentive Plan Compensation ($) (3) Changein Pension Valueand Nonqualified Deferred Compensation Earnings ($) (4) AllOther Compensation ($) (5) Total ($) DanielL.Knotts 2017 950,000 1,300,000 4,169,980 — 501,125 157,306 25,300 7,103,711 Presidentand 2016 781,250 1,125,000 4,354,484 — 142,025 36,291 32,747 6,471,797 ChiefExecutiveOfficer 2015 725,000 700,000 2,235,630 — 205,538 — 25,043 3,891,211 TerryD.Peterson 2017 550,000 900,000 1,019,321 — 185,680 — 51,648 2,706,648 ExecutiveVicePresident 2016 168,750 — 1,345,939 — 13,362 — 12,618 1,540,669 andChiefFinancialOfficer JohnP.Pecaric 2017 475,000 425,000 741,324 — 160,360 75,722 38,842 1,916,248 ExecutiveVicePresident, 2016 396,250 250,000 823,567 — 45,991 — 267,542 1,783,350 ChiefCommercialOfficerand PresidentInternational DeborahL.Steiner 2017 350,000 141,667 602,318 — 118,160 — 27,009 1,239,154 ExecutiveVicePresidentand 2016 265,513 124,740 362,361 — 16,835 — — 769,449 GeneralCounsel ThomasM.Carroll (6) 2017 189,205 666,667 694,983 — — 73,966 63,127 1,687,948 FormerExecutiveVicePresident 2016 450,000 916,667 913,212 — 62,010 12,093 36,554 2,390,536 andChiefAdministrativeOfficer (1) Theamountsshowninthiscolumnfor2017,2016and2015constitutelong-termincentivecompensationpaidascashawards(the“CashAwards”)grantedunderthe Company’s2012PerformanceIncentivePlan(the“2012PIP”)in2013and2014ofwhichone-fourthandone-third,respectively,vestedontheanniversaryofeachofthe grantdates.The2017amountforMr.Petersonreflectsaone-timesign-onbonusthatwaspaidin2017.The2016amountsalsoincludespincostreductionbonusesinthe amountof$725,000forMr.Knotts,andspinbonusesintheamountof$125,000and$83,073,foreachofMr.PecaricandMs.Steiner,respectively. (2) TheamountsshowninthiscolumnconstitutetheaggregategrantdatefairvalueofRSUsgrantedduringthefiscalyearunderthe2012PIP.Inaddition,for2016,the amountsshownincludeaone-timegrant ofRSUsgrantedonOctober 1,2016.TheamountsarevaluedinaccordancewithFinancialAccountingStandardsBoard AccountingStandardsCodificationTopic718, Compensation—StockCompensation (whichwerefertoasASCTopic718).SeeNote15totheConsolidatedFinancial StatementsincludedinourAnnualReportonForm10-KforthefiscalyearendedDecember31,2017foradiscussionoftherelevantassumptionsusedincalculatingthe fairvaluepursuanttoASCTopic718.PursuanttoSECrules,theamountsshownexcludetheimpactofestimatedforfeituresrelatedtoservice-basedvestingconditions. (3) TheamountsshowninthiscolumnincludepaymentsmadeunderourAIP,whichisasubplanofthe2012PIP.Attheoutsetofeachyear,theHRCommitteesets performancecriteriathatareusedtodeterminewhetherandtowhatextenttheNEOswillreceivepaymentsundertheAIP.See CompensationDiscussionandAnalysis beginningonpage18ofthisproxystatementforfurtherinformationonthe2017payments. (4) Theamountsshowninthiscolumnincludetheaggregateoftheincrease,ifany,inactuarialvaluesofeachofthenamedexecutiveofficer’sbenefitsunderourPensionPlans andSupplementalPensionPlans.Mr.Knottshadadecreaseinactuarialvaluein2015intheamountof$64,271.Mr.Pecarichadadecreaseinactuarialvaluein2016inthe amountof$3,119. (5) AmountsinthiscolumnincludethevalueofthefollowingperquisitesprovidedtotheNEOsin2017:(a)anamountforautomobileallowancewhichistheamountactually paidtoeachNEO;(b)personaltax/financialadvicewhichisvaluedatactualamountspaidtoeachproviderofsuchadvice;(c)thepremiumpaidbytheCompanyforgroup termlifeinsuranceandsupplementaldisabilityinsurance;and(d)imputedincomefromCompanyprovidedlifeinsurance.Mr.Knottsisalsoabletousecertaincountryclubs atwhichtheCompanyhasabusinesspurposemembershipforhispersonalusebuttotheextentthatthereisanincrementalcosttotheCompany,Mr.Knottsreimburses theCompanyforsuchpersonaluse.Mr.Petersonreceivedrelocationexpensesintheamountof$16,631.InconnectionwithhisresignationonJune1,2017,Mr.Carroll received$34,616aspayoutforhisaccruedvacation. ExecutiveCompensation 27 RRD 2018NoticeofMeetingandProxyStatement