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endo | 100 Endo Boulevard | Chadds Ford, Pennsylvania 19317 21
We refer to all of these sample companies as the “Data Point Companies.” The Committee believes that Endo competes
with the Data Point Companies for talent and for shareholder investment. The Data Point Companies typically have similar
executive officer positions and create a range of comparative compensation values that are utilized by the Compensation
Committee to confirm that salary levels and overall incentive opportunities approved by the Compensation Committee are
consistent with the Company’s overall objectives. In response to the Company’s recent acquisitions and changing busi-
ness, Hay Group recommended a recalibration of the of the Data Point Companies to include a cross industry composite
of organizations that reflect the Company’s current business segments. As a result of this review, the Compensation Com-
mittee approved the Data Point Companies in 2011 listed in the table below.
From time to time, the Compensation Committee re-evaluates the Data Point Companies from a business revenue alloca-
tion perspective once any respective segment shifts by +/- 15%. Accordingly, the Data Point Companies may change, as
was the case in 2011. The graphs below reflect the Data Point Companies’ revenue composition for the most recent fiscal
year at the time of the Compensation Committee’s approval in 2011, as well as Endo’s actual revenue allocation across
business segments for 2011.
The Compensation Committee does not attempt to set each compensation element for each executive within a particular
range related to levels provided by the Data Point Companies. Instead, the Compensation Committee uses market com-
parisons as one factor in making compensation decisions. Other factors considered when making individual executive
compensation decisions include individual contribution and performance, reporting structure, complexity and importance
of role and responsibilities, leadership and growth potential.
In establishing 2012 compensation, the Compensation Committee also considered the results of the most recent stock-
holder advisory vote on executive compensation (the “say-on-pay vote”) at our annual meeting of stockholders held in May
2011, where a substantial majority of the votes cast on the say-on-pay proposal were voted in favor of the proposal. The
Compensation Committee believes these results affirm stockholder support for our executive compensation decisions and
policies, and as such, the Compensation Committee did not implement any changes as a result of this vote. The Compen-
sation Committee will continue to consider the results of future say-on-pay votes when making executive compensation
decisions and policies.
2011 Data Point Companies
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Biogen Idec Inc. Edwards Lifesciences Corporation Medicis Pharmaceutical Corporation Valeant Pharmaceuticals Inc.
.dtL ttoclihC renraW .cnI nalyM .cnI seirotarobaL tseroF .cnI ,draB .R.C
CareFusion Corporation Gilead Sciences, Inc. Par Pharmaceuticals Watson Pharmaceuticals Inc.
Medical Devices
and Services
25%
Generic
Pharmaceuticals
19%
Branded/Specialty
Pharmaceuticals
56%
Data Point
Companies
Medical Devices
and Services
18%
Generic
Pharmaceuticals
21%
Branded/Specialty
Pharmaceuticals
61%
Endo
2011
Actual