Thursday, February 14, 2013

Fidelity National Financial, Inc. Proxy Statement

I wanted to make sure that I was reporting accurately in the previous blog post and I found the actual proxy statement - and I skimmed it but found so many interesting things.  To me this excerpt, for example, means that in spite of a projected decline in mortgage originations (income) they are committed to their stockholders to protect the profits.  Got that.  How??????

Fidelity National Financial, Inc.
601 Riverside Avenue
Jacksonville, Florida 32204


We came into 2011 facing a significant projected decline in mortgage originations. Despite the challenging market outlook,we committed to taking the necessary actions to protect our margins and to maintain industry leadership in profitability. During fiscal 2011, under the leadership of our named executive officers, our Company performed well.

In 2011, we generated $414.8 million in pre-tax earnings on $4.8 billion in revenue. We also returned $105.1 million to our shareholders in the form of dividends and repurchased 5,419,850 shares of our common stock.

Our compensation programs, which emphasize pay for performance, are designed to help us accomplish our business objectives and to foster a high performance culture. Accordingly, our named executive officers' 2011 cash incentives under the FNF annual incentive plan were tied directly to the achievement of pre-established, objectively determinable goals relating to two key measures of our success: return on equity (ROE) and pre-tax margin relating to our title segment.

Our strong earnings in 2011 resulted in the compensation earned under the FNF annual incentive plan paying out at or near maximum levels.