2018 Guide to Effective Proxies

2.18 Summary compensation table | 501 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES CIENA CORPORATION DONNELLEY FINANCIAL SOLUTIONS EDWARDS LIFESCIENCES CORPORATION FIRST AMERICAN FINANCIAL CORPORATION EXECUTIVE COMPENSATION TABLES Thefollowingtabularinformation,accompanyingnarrativedisclosureandfootnoteddetailprovidecompensation-related informationforourNEOsasoftheendoffiscal2017.Theseexecutivecompensationtablesincludeallcompensationawardedto orearnedbyeachNEOforthefiscalyearsindicatedbelowinwhichtheyservedasanexecutiveofficer.Aspreviouslynoted, Mr.Locoh-DonouresignedasanexecutiveofficerandemployeeofCienaeffectiveasofMarch23,2017. SummaryCompensationTable TheSummaryCompensationTablebelowpresentscompensationearnedbyourNamedExecutiveOfficersforeachofthe lastthreefiscalyearsduringwhichtheyservedasexecutiveofficersinaccordancewithSECrules. SummaryCompensationTable NameandPrincipalPosition Year Salary ($)(1) Bonus ($)(2) Stock Awards ($)(3) Non-Equity IncentivePlan Compensation ($)(4) AllOther Compensation ($)(5) Total ($) GaryB.Smith 2017 $900,000 — $5,592,261 $1,125,000 $17,950 $7,635,211 PresidentandCEO 2016 $875,576 — $4,246,938 $1,068,750 $13,350 $6,204,614 2015 $800,576 — $5,562,500 $1,070,000 $15,547 $7,448,623 JamesE.Moylan,Jr. 2017 $525,000 — $1,491,522 $ 446,250 $12,975 $2,475,747 SVPandCFO 2016 $506,826 — $1,132,749 $ 423,938 $10,380 $2,073,893 2015 $450,576 — $1,557,470 $ 409,275 $ 7,950 $2,425,271 StephenB.Alexander 2017 $420,000 — $1,065,102 $ 315,000 $11,161 $1,811,263 SVPandCTO 2016 $415,531 — $ 809,217 $ 299,250 $13,246 $1,537,244 2015 $400,512 — $1,001,257 $ 321,000 $ 7,385 $1,730,154 RickL.Hamilton 2017 $420,000 $615,000 $1,087,817 $ 315,000 $53,830 $2,491,647 SVP,GlobalSoftware&Services FrançoisLocoh-Donou 2017 $210,000 — $1,757,798 — $69,782 $2,037,580 FormerSVPandCOO 2016 $525,572 — $2,709,839 $ 423,938 $12,015 $3,671,364 2015 $420,538 — $1,557,470 $ 381,990 $10,103 $2,370,101 DavidM.Rothenstein 2017 $450,000 — $1,065,102 $ 337,500 $ 7,950 $1,860,552 SVP,GeneralCounselandSecretary 2016 $438,060 — $ 809,217 $ 299,250 $ 9,474 $1,556,001 2015 $400,512 — $1,334,948 $ 299,600 $ 7,950 $2,043,010 (1) Cienahasa52or53-weekfiscalyear,whichendsontheSaturdaynearesttothelastdayofOctoberineachyear.Ciena’s fiscal2017,2016and2015eachconsistedofa52-weekperiod. (2) Forfiscal2017,reflectstworetentionpaymentstoMr.Hamiltonof$615,000intheaggregateandwhichwerepartofhis non-executivecompensationarrangementuponhire.See“CompensationDiscussion&Analysis–Appointmentof Mr.Hamilton”above. (3) Theamountssetforthinthe“StockAwards”columnrepresenttheaggregategrantdatefairvalueofrestrictedstockunitand performancestockunitawardsgrantedduringthefiscalyearsnotedabove,computedinaccordancewithFASBASCTopic 718.TheaggregategrantdatefairvalueiscalculatedusingtheclosingpriceofCienacommonstockonthegrantdateasif thesharesunderlyingtheseawardswerevestedanddeliveredonthegrantdate.Aggregateamountsdonotreflectsaleor forfeitureofsharestofundtaxwithholdinginaccordancewiththetermsoftheawardagreement.Aggregategrantdatefair valuesreportedabovewilllikelyvaryfromtheactualamountultimatelyrealizedbyanyNEObasedonanumberoffactors, includingthenumberofsharesthatultimatelyvest,thetimingofvesting,thetimingofanysaleofsharesandthemarket priceofCienacommonstockatthattime.ForPSUs,wecalculategrantdatefairvaluebyassumingthesatisfactionofany performance-basedobjectivesatthe“target”levelandmultiplyingthecorrespondingnumberofsharesearnedbasedupon suchachievementbytheclosingpricepershareofCienacommonstockonthegrantdate.Assumingthemaximumfuture payoutunderthePSUs,however,theaggregategrantdatefairvalueinthe“StockAwards”columnaboveforfiscal2017 wouldhavebeen$8,947,713,$2,237,284,$1,597,654,$1,380,863,$2,636,697,and$1,597,654foreachofMessrs.Smith, Moylan,Alexander,Hamilton,Locoh-DonouandRothenstein,respectively.Seethe“GrantsofPlan-BasedAwards”table belowforinformationrelatingtorestrictedstockunitandperformancestockunitawardsgrantedduringfiscal2017underour 2008Plan. (4) Non-EquityIncentivePlanCompensationreflectsamountsearnedbyeachNamedExecutiveOfficerunderCiena’sannual cashincentivebonusplanforfiscal2017. 50 2018ProxyStatement Executive Compensation 2017 Summary Compensation Table TheSummaryCompensationTableprovidescompensationinformationaboutourprincipalexecutiveofficer,principalfinancial officer,andthethreemosthighlycompensatedexecutiveofficersotherthantheprincipalexecutiveofficerandprincipalfinancial officer,ortheNEOs,asofDecember31,2017.PriortotheSpin,Mr.LeibwasanamedexecutiveofficerofRRDandMr.Juhase’s roleatRRDwascomparabletohispositionattheCompany,andthereforeinformationregardingtheircompensationfor2015is includedinthetablebelow.Mr.Gardella,Ms.ReinersandMs.TurnerwerenotnamedexecutiveofficersofRRD,nordidtheyhold thesamepositionatRRD,andthereforeno2015compensationinformationforthemisreportedinthetablebelow.Theinformation setforthbelowforMr.LeibandMr.JuhasewithrespecttotheyearendedDecember31,2015ishistoricalRRDcompensation, whichhasbeenprovidedby,orderivedfrominformationprovidedby,RRDandreflectscompensationearnedforservicesrendered toRRD.TheinformationsetforthbelowwithrespecttotheyearendedDecember31,2016forallNEOsincludespre-Spin compensationreceivedfromRRDcombinedwithpost-SpincompensationreceivedfromtheCompany. SummaryCompensationTable Nameand Principal Position Year Salary ($) Bonus ($) (1) Stock Awards ($) (2) Option Awards ($) (3) Non-Equity IncentivePlan Compensation ($) (4) Changein PensionValue and Nonqualified Deferred Compensation Earnings ($) (5) AllOther Compensation ($) (6) Total ($) DanielN.Leib 2017 700,000 1,100,000 2,749,050 550,116 729,225 36,362 25,369 5,890,122 PresidentandChief ExecutiveOfficer 2016 2015 625,000 600,000 900,000 300,000 3,608,480 1,420,042 — — 226,570 170,000 14,896 — 22,785 25,327 5,397,731 2,515,469 ThomasF.Juhase 2017 441,000 227,436 748,725 149,961 459,412 151,682 5,085 2,183,301 ChiefOperatingOfficer 2016 2015 425,250 420,000 196,529 75,000 858,200 302,144 — — 121,563 69,378 13,008 — 1,322 1,892 1,615,872 868,414 DavidA.Gardella 2017 390,000 375,000 748,725 149,961 266,619 13,873 4,833 1,949,011 ChiefFinancialOfficer 2016 345,000 325,000 814,740 — 65,424 7,146 412 1,557,722 JenniferB.Reiners 2017 325,000 300,000 400,065 80,031 170,909 39,471 4,905 1,320,381 GeneralCounsel 2016 300,925 350,000 382,709 — 45,304 45,304 207 1,100,429 KamiS.Turner 2017 260,000 158,333 174,330 34,965 109,382 4,773 4,788 746,571 ChiefAccounting Officer 2016 237,500 158,333 136,694 — 27,828 2,468 90 562,913 1Theamountsshowninthiscolumnfor2017consistof(a)deferredcashawardsgrantedundertheRRD2012PerformanceIncentivePlan,ortheRRD2012PIP,in March2013,whichvestedonMarch2,2017inthefollowingamounts:Mr.Leib,$800,000;Mr.Juhase,$155,907;Mr.Gardella,$300,000;Ms.Reiners,$200,000and Ms.Turner,$100,000,(b)deferredcashawardsgrantedundertheRRD2012PIPinMarch2013,ofwhichone-fourthvestedonMarch2,2017inthefollowingamounts: Ms.Reiners,$25,000andMs.Turner,$12,500,(c)deferredcashawardsgrantedundertheRRD2012PIPinMarch2014,ofwhichone-thirdvestedonJanuary1,2017 inthefollowingamounts:Mr.Leib,$300,000;Mr.Juhase,$71,529;Mr.Gardella,$75,000;Ms.Reiners,$50,000andMs.Turner,$33,333and(d)deferredcashawards grantedundertheRRD2012PIPinMarch2014,ofwhichone-fourthvestedonMarch2,2017inthefollowingamounts:Ms.Reiners,$25,000andMs.Turner,$12,500. 2Theamountsshowninthiscolumnconstitutetheaggregategrantdatefairvalueofsharesofperformancerestrictedstockandrestrictedstockunitsgrantedduringthe fiscalyearundertheCompany’s2016PerformanceIncentivePlan,orthe2016PIP.Theperformancerestrictedstockshareswereissuedat150%oftargetandwillbecut backaccordinglybaseduponactualperformancelevels.TheamountsarevaluedinaccordancewithFinancialAccountingStandardsBoardAccountingStandards CodificationTopic718,Compensation—StockCompensation(whichwerefertoasASCTopic718).SeeNote14totheConsolidatedFinancialStatementsincludedinour AnnualReportonForm10-KfortheyearendedDecember31,2017foradiscussionoftherelevantassumptionsusedincalculatingthefairvaluepursuanttoASCTopic 718.Forfurtherinformationontheseawards,seethe“OutstandingEquityAwardsatFiscalYear-End”table.TheNEOsweregrantedawardswiththefollowinggrantdate fairvalues: TypeofAward DanielLeib ThomasJuhase DavidGardella JenniferReiners KamiTurner RSUs $1,099,620 $299,490 $299,490 $160,920 $ 69,285 PerformanceRestrictedStock $1,649,430 $449,235 $449,235 $239,145 $105,045 28 Executive Compensation Tables FirstAmericanFinancialCorporation 2018ProxyStatement|41 ThefollowingtablessetforthcompensationinformationfortheCompany’s“namedexecutiveofficers” pursuanttothespecificrequirementsofapplicableregulations.TheCompanybelievesthatthe2017 SummaryCompensationTablebelowdoesnotcompletelyreflectitsperspectiveoncompensationforits namedexecutiveofficers.Rather,theCompanybelievesthatitsperspectiveismorecompletelyreflectedin the“CompensationDiscussion andAnalysis”sectionabove. Thefollowing2017SummaryCompensationTablesetsforthcompensationawardedtoor earnedbyour namedexecutiveofficersfortheyearsindicated. 2017 Summary Compensation Table Nameand PrincipalPosition Year Salary ($) Bonus(1) ($) Stock Awards(2) ($) Non-Equity IncentivePlan Compensation(1) ($) Changein PensionValue and Nonqualified Deferred Compensation Earnings(3) ($) AllOther Compensation ($) Total ($) DennisJ.Gilmore 2017 $950,000 $0 $4,348,262 $ 2,365,200 $ 654,480 $ 12,402 (4)$8,330,344 ChiefExecutiveOfficer 2016 $949,231 $0 $4,765,014 $ 1,757,700 $ 562,048 $ 14,471 $8,048,464 2015 $900,000 $0 $2,556,355 $ 2,262,330 $ 0 $ 8,003 $5,726,688 KennethD.DeGiorgio 2017 $750,000 $0 $1,931,951 $ 1,022,000 $ 331,105 $ 13,049 (5)$4,048,105 ExecutiveVicePresident 2016 $749,615 $0 $2,071,440 $ 882,000 $ 225,947 $ 15,056 $3,944,058 2015 $725,000 $0 $1,281,959 $ 1,111,500 $ 0 $ 8,532 $3,126,991 ChristopherM.Leavell 2017 $700,000 $0 $1,818,945 $ 949,000 $ 570,469 $ 14,526 (6)$4,052,940 COOofprincipalsubsidiary 2016 $699,615 $0 $1,925,959 $ 819,000 $ 501,495 $ 16,340 $3,962,409 2015 $675,000 $0 $1,221,942 $ 1,026,000 $ 47,976 $ 9,661 $2,980,579 MarkE.Seaton 2017 $599,519 $0 $1,379,971 $ 839,500 $ 0 $ 11,678 (7)$2,830,668 EVP,ChiefFinancialOfficer 2016 $574,231 $0 $1,379,431 $ 630,000 $ 0 $ 13,825 $2,597,487 2015 $525,000 $0 $ 813,960 $ 769,500 $ 0 $ 7,425 $2,115,885 MatthewF.Wajner 2017 $289,712 $0 $ 176,646 $ 191,625 $ 0 $ 11,678 (8)$ 669,661 VP,ChiefAccountingOfficer 2016 $274,769 $0 $ 200,005 $ 156,240 $ 0 $ 13,259 $ 644,273 2015 $260,000 $0 $ 130,659 $ 186,732 $ 0 $ 6,984 $ 584,375 (1) Asrequiredbyapplicablerules,annualcashbonusesthatwerepaidthroughperformanceunits,orwereotherwisebaseduponthe achievementofpre-determinedperformancemetrics,areincludedunderthecolumnentitled“Non-EquityIncentivePlan Compensation”,asopposedtothecolumnentitled“Bonus”. (2) TheamountsshownarethegrantdatefairvalueofstockawardsgrantedintheyearindicatedascomputedinaccordancewithFASB ASCTopic718usingtheclosingpriceofourcommonstockonthegrantdate.Thevaluessetforthunderthiscolumnforeachyear reflectthegrantsmadeinthatyearbasedonperformancemetricsfromtheprioryear(e.g.,amountsreportedfor2017arebasedon performancemetricsfrom2016).Forinformationonthevaluationoftheawards,refertoNote15toourconsolidatedfinancial statementsinourAnnualReportonForm10-KforthefiscalyearendedDecember31,2017. (3) Reflectsthechangeinthepresentvalueofthebenefitfromtheendoftheyearprecedingtheapplicablefiscalyeartotheendofthe applicablefiscalyearforboththequalifiedandnon-qualifiedpensionplans(whichareentitledtheFirstAmericanFinancial CorporationPensionPlanandtheFirstAmericanFinancialCorporationExecutiveSupplementalBenefitPlan).Messrs.Seatonand Wajnerarenotparticipantsineitheroftheseplans.See2017PensionBenefitstableforassumptions.Amountsinthecolumndonot includeearningsundertheCompany’sdeferredcompensationplanassuchearningsareneitherabovemarketnorpreferential.The Company’sdeferredcompensationplanprovidesareturnbasedonanumberofinvestmentcreditingoptions.InMay2016the Company’sboardofdirectorsterminatedthePensionPlaneffectiveasofJuly31,2016.See2017PensionBenefitsbelowfor discussion. EXECUTIVECOMPENSATIONANDOTHERINFORMATION EXECUTIVECOMPENSATION The“SummaryCompensationTable”quantifiesthevalueofthedifferentformsofcompensationearnedbyorawardedto ourNEOsfor2017.TheprimaryelementsofeachNEO’stotalcompensationreportedinthetablearebasesalary,annual bonus and long-term equity incentives consisting of stock options, PBRSUs and RSUs. NEOs also received the other benefitslistedinthe“AllOtherCompensation”columnofthe“SummaryCompensationTable,”asfurtherdescribedinthe footnotestothetable. The“SummaryCompensationTable”shouldbereadinconjunctionwiththetablesandnarrativedescriptionsthatfollow. A description of the material terms of each NEO’s base salary and annual bonus is provided immediately following the “Summary Compensation Table.” The “Grants of Plan-Based Awards in Fiscal Year 2017” table, and the accompanying descriptionofthematerialtermsofthestockoptions,PBRSUs,andRSUsgrantedin2017,providesinformationregarding thelong-termequityincentivesawardedtoNEOsin2017.The“OutstandingEquityAwardsat2017FiscalYear-End”and “Option Exercises and Stock Vested in Fiscal Year 2017” tables provide further information on the NEOs’ potential realizablevalueandactualvaluerealizedwithrespecttotheirequityawards. SummaryCompensationTable The followingtablesetsfortha summary,fortheyearsindicated,of thecompensationof theprincipalexecutiveofficer, theprincipalfinancialofficerandourthreeothermosthighlycompensatedexecutiveofficerswhosetotalcompensation for 2017 was in excess of $100,000 and who were serving as executive officers at the end of 2017. No other executive officers that would have otherwise been includable in the table on the basis of total compensation for 2017 have been excludedbyreasonoftheirterminationofemploymentorchangeinexecutivestatusduringthatyear. Nameand PrincipalPosition Year Salary $ (1) Bonus $ (2) Stock Awards $ (3) Option Awards $ (3) Non-Equity IncentivePlan Compensation $ (4) AllOther Compensation $ (5) Total $ Mr.Mussallem 2017 $995,385 — $3,391,586 $3,631,053 $2,597,000 $183,294 $10,798,318 ChairmanoftheBoardand ChiefExecutiveOfficer 2016 976,731 — 2,943,863 3,409,180 2,228,226 176,099 9,734,099 2015 941,731 — 2,674,188 3,161,339 2,074,800 178,142 9,030,200 Mr.Ullem 2017 569,826 — 855,664 914,598 800,400 44,082 3,184,570 CorporateVicePresident, ChiefFinancialOfficer 2016 555,309 — 735,371 851,213 706,040 57,821 2,905,754 2015 539,074 — 675,278 796,272 721,000 70,593 2,802,217 Mr.Bobo 2017 573,506 2,000 821,135 881,474 802,473 68,501 3,149,089 CorporateVicePresident 2016 557,668 4,200 735,371 851,213 654,444 55,017 2,857,913 2015 526,296 4,200 675,278 796,272 689,325 61,130 2,752,501 Ms.Szyman 2017 526,885 — 770,719 825,202 742,540 52,030 2,917,376 CorporateVicePresident 2016 513,461 — 687,878 797,419 667,244 176,615 2,842,617 2015 501,923 300,000 2,667,945 1,438,048 608,825 220,966 5,737,707 Mr.Wood 2017 550,506 2,000 821,135 880,215 780,318 87,602 3,121,776 CorporateVicePresident 2016 526,002 — 712,945 825,898 753,660 83,869 2,902,374 2015 517,787 2,000 651,620 771,051 750,000 81,920 2,774,378 (1) Amountsshownfor2017includeamountsthatweredeferredintotheEDCPasfollows:Mr.Mussallem–$118,144;Mr.Ullem–$0;Mr.Bobo– $26,039; Ms. Szyman – $0; and Mr. Wood – $41,367. The EDCP is more fully described in the section following the “Nonqualified Deferred CompensationPlans”tablebelow. (2) Amounts shown for Messrs. Bobo and Wood include awards received through our Innovation Rewards Program which compensates active employeeinventorsfortheirpatentcontributionstoourCompany. (3) Theamountsreportedinthesecolumnsreflecttheaggregategrant-datefairvalueofthestockawardsandoptionawardsduringtheapplicable year.Thesevalueshavebeendeterminedundertheprinciplesusedtocalculatethegrant-datefairvalueofequityawardsforpurposesofour financialstatementsinaccordancewithFinancialAccountingStandardsBoardAccountingStandardsCodificationTopic718.Foradiscussionof theassumptionsandmethodologiesusedtovaluetheawardsreportedinthesecolumns,pleaseseethediscussionofstockawardsandoption awardscontainedinNote13ofthe“NotestoConsolidatedFinancialStatements”inthe2017AnnualReport. 42 EdwardsLifesciencesCorporation | 2018ProxyStatement