BorgWarner Inc. | ||
[x] | No fee required. | ||
Fee computed on table below per Exchange Act Rules 14a-6(i) |
(1) Title of each class of securities to which transaction applies: |
(2) Aggregate number of securities to which transaction applies: |
(3) Per unit |
(4) Proposed maximum aggregate value of transaction: | ||
(5) Total fee paid: | ||
(2) Form, Schedule or Registration Statement No.: |
(3) Filing Party: | ||
(4) Date Filed: | ||
1. | To elect four nominees for Class | |
2. | ||
To ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Company for | ||
To transact such other business as may properly come before the meeting or any adjournment or postponement thereof. |
By Order of the Board of Directors | ||
/s/ John J. Gasparovic | ||
John J. Gasparovic | ||
Secretary | ||
· | ||
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Class 1 Directors | Age | Principal Occupation and Directorships
Mr. Stallkamp’s experience within and outside of the automotive industry, and his nearly 20 year tenure with DaimlerChrysler and Chrysler Corporation, important customers of BorgWarner, his international perspective and his financial acumen make him a valued member of the Company’s board. While at Chrysler, Mr. Stallkamp became known for developing new business processes and enhanced partnerships with the automotive supply community. His service on the boards of Visteon (an automotive parts supplier) 2002-2005 and Asahi TEC Corporation (a manufacturer of automotive and other parts) 2008 to present has given him additional insight into the priorities of and challenges confronting automotive suppliers. Mr. Stallkamp’s perspective has been broadened by experience in industries other than the auto industry and through his private equity financing experience.
Mr. Novak's extensive knowledge of accounting and his financial expertise across a broad range of public companies make him well qualified as a member of our board and as chairman of the audit committee of our board. Mr. Novak spent over thirty years performing, reviewing and supervising audits of diverse public companies' financial statements and overseeing the filing of them with the Securities and Exchange Commission. He has a master's degree in accounting, is a Certified Public Accountant and currently chairs the audit committees of two other public companies. |
Class III Directors | Age | |||||
Principal Occupation and Directorships | ||||||
Robin J. Adams 2005 | 56 | Mr. Adams has been Executive Vice President, Chief Financial Officer and Chief Administrative Officer since April 2004. He was Executive Vice President — Finance and Chief Financial Officer of American Axle & Manufacturing Holdings Inc. (“American Axle”) from July 1999 until April 2004. Prior to joining American Axle, he was Vice President and Treasurer and principal financial officer of BorgWarner Inc. from May 1993 until June 1999. Mr. Adams is also a director of Carlisle Companies Inc. Mr. Adams has over 30 years experience in the transportation industry. Prior to joining BorgWarner in April 2004, he was Executive Vice President of Finance and Chief Financial Officer at American Axle and Manufacturing, Inc. He was previously with BorgWarner for 13 years, a period during which he served as Vice President and Treasurer and Principal Financial Officer. The functional areas reporting to Mr. Adams include accounting, audit, finance, treasury, tax, business development, investor relations and information technology. He is a Certified Public Accountant. Mr. Adams’ deep knowledge of the transportation industry and the Company’s business, his mergers and acquisitions experience and financial acumen make him a valued member of the | ||||
David T. Brown 2004 | 61 | Mr. Brown retired from Owens Corning on December 31, 2007. He was President and Chief Executive Officer of Owens Corning from April 2002 until his retirement. He was Executive Vice President and Chief Operating Officer from January 2001 to March 2002. He was Vice President of Owens Corning and President, Insulating Systems Business from January 1997 to December 2000. Mr. Brown is also a director of Franklin Electric Co., Inc. |
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Class III Directors | Age | Principal Occupation and Directorships |
As President and Chief Executive Officer of Owens Corning, a global leader in glass technology and a share leader in many of the markets it serves, Mr. Brown led an innovative organization, that grew worldwide during a difficult period in that company’s history associated with its asbestos-related liability dating back to 1958. He brings operational experience and the perspective of a former CEO to his service on BorgWarner’s board. Mr. Brown was a director of Owens Corning until December 31, 2007. His experience serving on boards of other public companies in varied industries contributes to his knowledge of board dynamics. On October 5, 2000, Owens Corning and 17 of its United States subsidiaries filed petitions for reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court in Wilmington, Delaware. Owens Corning stated that it took the action to address demands on its cash flow resulting from asbestos-related liability. Mr. Brown was a Vice President of Owens Corning and President, Insulating Systems Business from January 1997 to December 2000, Executive Vice President and Chief Operating Officer of Owens Corning from January 2001 to March 2002, and President and Chief Executive Officer of Owens Corning from April 2002 through 2007. Mr. Brown was also an executive officer of two of the 17 Owens Corning subsidiaries at the time of the filing of the bankruptcy petitions. | ||||||
Dennis C. Cuneo 2009 | 60 | Mr. Cuneo has been an attorney with Arent Fox LLP since November 2006. He was Senior Vice President of Toyota North America, Inc. from 2000 to 2006; Corporate Secretary and Chief Environmental Officer of Toyota Motor North America Inc. from 2004 to 2006, and Senior Vice President of Toyota Motor Manufacturing North America from 2001 to 2006. Mr. Cuneo was formerly Board Chairman of the Federal Reserve Bank of Cleveland, Cincinnati |
a director who is an employee, or whose immediate family member is an executive officer, of the Company is not “independent” until three years after the end of such employment relationship. | ||
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the highest personal and professional ethics, integrity and values; |
demonstrated business acumen, experience and ability to use sound judgment to contribute to effective oversight of the business and financial affairs of the Company; |
ability to evaluate strategic options and risks and form independent opinions, stated constructively to contribute to guidance and direction of the Company; |
active, objective and constructive participation at meetings of the Board and its committees, with flexibility in approaching problems; |
open mindedness on policy issues and areas of activity affecting overall interests of the Company and its stockholders; |
stature to represent the Company before the public, stockholders and various others who affect the Company; |
involvement only in activities and interests that do not create a conflict with the |
willingness to objectively appraise management performance in the interest of the stockholders; |
interest and availability of time to be involved with the Company and its employees over a sustained period; |
ability to work well with others, with deep and wide perspective in dealing with people and situations, respect for the views of others; |
a reasoned and balanced commitment to the social responsibilities of the Company; |
contribution to the |
willingness of independent directors to limit public company board service to 4 or fewer boards (Any exceptions would require Corporate Governance Committee approval.); |
willingness to tender, promptly following the annual meeting at which they are elected or re-elected as Director, an irrevocable resignation that will be effective upon (i) the failure to receive the required vote at the next annual meeting at which they face re-election and (ii) Board acceptance of such resignation; and |
willingness to provide all information, including completion of a questionnaire, required by the Company’s Amended and Restated By-Laws. |
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BORGWARNER INC. AUDIT COMMITTEE | ||||
Ernest J. Novak, Jr. Chairman | ||||
Dennis C. Cuneo | John R. McKernan, Jr. | Thomas T. Stallkamp |
Name and Address of Beneficial Owner | Number of Shares | Percent of Class | ||||
FMR LLC | 9,946,536(a) | 8.5% | ||||
82 Devonshire Street | ||||||
Boston, MA 02109 | ||||||
BlackRock, Inc. | 6,417,867(b) | 5.5% | ||||
40 East 52nd Street | ||||||
UBS AG | 6,311,227(c) | |||||
Bahnhofstrasse | ||||||
45, PO Box CH-8021 | ||||||
Zurich, Switzerland | ||||||
6,041,336(d) | ||||||
11111 Santa Monica Boulevard | ||||||
Suite 820 | ||||||
Los Angeles, CA 90025 |
(a) | Pursuant to a Schedule 13G dated February | |
(b) | Pursuant to a Schedule 13G dated January 29, 2010 on behalf of BlackRock, Inc. indicating that it had sole voting power for 6,417,867 shares and sole dispositive power for 6,417,867 shares. | |
(c) | Pursuant to a Schedule 13G/A dated February 11, 2010 on behalf of UBS AG indicating that it had sole voting power for | |
(d) | Pursuant to a Schedule | |
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Amount and Nature | Percent of | ||||||||||
Name of Beneficial Owner(a) | of Stock Ownership(b)(c) | Class | Amount and Nature of Stock Ownership(b)(c) | Percent of Class | |||||||
Timothy M. Manganello | 687,844 | (d) | * | 1,057,599(d) | * | ||||||
Robin J. Adams | 291,740 | * | 384,334 | * | |||||||
Bernd Matthes | 102,182 | * | |||||||||
Alfred Weber | 113,233 | * | |||||||||
John G. Sanderson | 34,170 | * | |||||||||
Thomas F. Waldhier | 35,905 | * | |||||||||
Roger J. Wood | 197,701 | * | 255,962 | * | |||||||
Phyllis O. Bonanno | 33,054 | * | 41,215 | * | |||||||
David T. Brown | 10,890 | * | 10,956 | * | |||||||
Dennis C. Cuneo(e) | |||||||||||
Dennis C. Cuneo | 6,193 | * | |||||||||
Jere A. Drummond | 38,956 | * | 39,842 | * | |||||||
Alexis P. Michas | 183,640 | * | 168,603 | * | |||||||
John R. McKernan, Jr. (e). | 0 | * | |||||||||
Ernest J. Novak, Jr. | 21,356 | * | 21,356 | * | |||||||
Richard O. Schaum | 8,194 | * | 17,483 | * | |||||||
Thomas T. Stallkamp | 7,800 | * | 17,089 | * | |||||||
All directors and executive officers of the Company (20 persons) | 2,098,069 | 1.8 | % | ||||||||
Bernd W. Matthes (f) | 55,690 | * | |||||||||
All directors and executive officers of the Company (21 persons) | 2,524,104 | 2.1% |
* | Represents less than one percent. | |
(a) | For purposes of the above table, the address for each named person is 3850 Hamlin Road, Auburn Hills, Michigan 48326. | |
(b) | Includes the following number of shares issuable upon the exercise of options within the next 60 days: | |
(c) | Includes all shares with respect to which each officer or director directly, or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares the power to vote or to direct voting of such shares or to dispose or to direct the disposition of such shares. | |
(d) | ||
(e) | ||
(f) | Dr. Matthes resigned as an officer of the Company effective August 7, 2009. |
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12
AMSTED Industries, Inc. | Eaton Corporation | Praxair Inc. | ||
BAE Systems, Inc. | Fleetwood Enterprises, Inc. | Robert Bosch Corporation | ||
Ball Corporation | Harley-Davidson Motor Co. | The Sherwin-Williams Co. | ||
Brunswick Corporation | Illinois Tool Works Inc. | |||
The Timken Company | ||||
Cummins Inc. | ITT Industries, Inc. | TRW Automotive Inc. | ||
LLC | Kennametal Inc. | Valmont Industries Inc. | ||
Dana Corporation | Metaldyne Corporation | Worthington Industries Inc. | ||
Navistar | ||||
Donaldson Company Inc. | PACCAR Inc. | |||
Dover Corporation | Parker Hannifin Corporation | |||
Eastman Chemical Co. | ||||
Polaris Industries Inc. |
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2008 | 2009 | 2010 | ||||
Threshold | Base EV | Base EV | Base EV | |||
Target | Base + 0.5% of OI | Base + 1% of OI | Base + 1.5% of OI | |||
Maximum | Base + 1% of OI | Base + 2% of OI | Base + 3% of OI |
2009 Performance Expectations | ||||
Cash Flow | Relative Profitability | |||
Threshold | ($100,000,000) | 35% | ||
Target | ($50,000,000) | 30% | ||
Maximum | Positive | 20% |
BorgWarner Inc. | Business Group | Business Unit | ||||||||||
T. Manganello, CEO | 100 | % | ||||||||||
R. Adams, CFO | 100 | % | ||||||||||
R. Wood, President, Turbo/Emissions | 25 | % | 15 | % | 60 | % | ||||||
A. Weber, President, Morse TEC/Thermal | 25 | % | 15 | % | 60 | % | ||||||
B. Matthes, President, Transmission Systems | 25 | % | 15 | % | 60 | % |
BorgWarner Inc. Cash Flow | BorgWarner Inc. Relative Profitability | Business Unit Relative Profitability | |
T. Manganello, CEO | 50% | 50% | |
R. Adams, EVP, CFO and CAO | 50% | 50% | |
R. Wood, President, Turbo and Emissions Systems | 50% | 10% | 40% |
J. Sanderson, President, Drivetrain Systems | 50% | 10% | 40% |
T. Waldhier, President, BERU | 50% | 10% | 40% |
B. Matthes, Former President, Transmission Systems | 50% | 10% | 40% |
Performance Share TSR Performance/Payout Table | ||
Relative Increase in BorgWarner TSR vs. Peer Group | BorgWarner’s Relative Increase Percentile Rank | Percent of Target Number of Performance Shares Earned |
<81.3% | Below 25th percentile | 0.000% |
81.3% | 25th percentile | 25.000% |
87.5% | 35th percentile | 43.750% |
100.0% | 50th percentile | 71.875% |
112.5% | 65th percentile | 100.000% |
118.8% | 75th percentile | 140.000% |
141.1% | 90th percentile and above | 200.000% |
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18
Position | ||
Stock Ownership Guideline | ||
CEO | Three times average salary plus bonus for prior three years | |
CFO and Presidents | Two times average salary plus bonus for prior three years |
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Change in | ||||||||||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||||||||||
Value and | ||||||||||||||||||||||||||||||||||||
Non-Qualified | ||||||||||||||||||||||||||||||||||||
Non-Equity | Deferred | |||||||||||||||||||||||||||||||||||
Name and | Stock | Option | Incentive Plan | Compensation | All Other | |||||||||||||||||||||||||||||||
Principle | Salary | Bonus | Awards (1) | Awards (2) | Compensation (3) | Earnings | Compensation | Total | ||||||||||||||||||||||||||||
Position | Year | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||
Timothy M. Manganello | 2008 | 1,100,000 | — | 5,836,306 | 850,939 | — | — | 534,372 | 8,321,617 | |||||||||||||||||||||||||||
Chairman and CEO | 2007 | 900,000 | — | 6,296,024 | 1,030,051 | 2,666,782 | — | 237,695 | 11,130,552 | |||||||||||||||||||||||||||
2006 | 900,000 | — | 315,529 | 494,516 | 624,118 | — | 293,431 | 2,627,594 | ||||||||||||||||||||||||||||
Robin J. Adams | 2008 | 565,000 | — | 669,820 | 307,765 | — | — | 241,630 | 1,784,215 | |||||||||||||||||||||||||||
VP, CFO and CAO | 2007 | 466,000 | — | 1,644,501 | 445,985 | 1,061,342 | — | 111,776 | 3,729,604 | |||||||||||||||||||||||||||
2006 | 466,000 | — | 167,811 | 295,042 | 215,686 | — | 150,336 | 1,294,875 | ||||||||||||||||||||||||||||
Roger J. Wood | 2008 | 480,000 | — | 467,710 | 202,425 | 522,447 | — | 200,439 | 1,873,021 | |||||||||||||||||||||||||||
President and GM, | 2007 | 395,000 | — | 1,271,210 | 254,809 | 709,924 | — | 158,982 | 2,789,925 | |||||||||||||||||||||||||||
Turbo & Emission | 2006 | 395,000 | — | 117,169 | 123,333 | 329,835 | — | 249,738 | 1,215,075 | |||||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||||||||||
Bernd W. Matthes(4)(5) | 2008 | 405,000 | — | 361,407 | 150,953 | — | — | 162,825 | 1,080,185 | |||||||||||||||||||||||||||
President and GM, | 2007 | 365,000 | — | 1,032,589 | 198,144 | 326,478 | — | 321,672 | 2,243,883 | |||||||||||||||||||||||||||
Transmission Systems | 2006 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Alfred Weber(4)(5) | 2008 | 405,000 | — | 383,654 | 168,159 | — | — | 137,605 | 1,094,418 | |||||||||||||||||||||||||||
President and GM, MT / | 2007 | 375,000 | — | 1,136,380 | 180,763 | 292,427 | — | 183,691 | 2,168,261 | |||||||||||||||||||||||||||
Thermal Systems | 2006 | 375,000 | — | 117,169 | 66,278 | 202,655 | 3,598 | 276,508 | 1,041,208 |
Name and Principal | Salary | Bonus | Stock Awards (1) | Option Awards (1) | Non-Equity Incentive Plan Compensation (2) | Change in Pension Value and Non-Qualified Deferred Compensation Earnings | All Other Compensation | Total | |||||||||||||||||||||||||
Position | Year | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | ||||||||||||||||||||||||
Timothy M. Manganello | 2009 | 946,458 | - | 4,952,018 | - | 2,997,412 | - | 199,605 | 9,095,493 | ||||||||||||||||||||||||
Chairman and Chief Executive Officer | 2008 | 1,100,000 | - | 4,252,938 | - | - | - | 534,372 | 5,887,310 | ||||||||||||||||||||||||
2007 | 900,000 | - | 14,246,851 | 1,208,117 | 2,666,782 | - | 237,695 | 19,259,445 | |||||||||||||||||||||||||
Robin J. Adams | 2009 | 486,135 | - | 1,856,972 | - | 1,243,419 | - | 88,759 | 3,675,285 | ||||||||||||||||||||||||
Executive VP, Chief Financial Officer and Chief Admin Officer | 2008 | 565,000 | - | 1,379,110 | - | - | - | 241,630 | 2,185,740 | ||||||||||||||||||||||||
2007 | 466,000 | - | 1,169,000 | 457,199 | 1,061,342 | - | 111,776 | 3,265,317 | |||||||||||||||||||||||||
Roger J. Wood | 2009 | 437,865 | - | 1,114,224 | - | 641,862 | - | 157,962 | 2,351,913 | ||||||||||||||||||||||||
President, Turbo & Emissions Systems & Thermal Systems | 2008 | 480,000 | - | 982,638 | - | 522,447 | - | 200,439 | 2,185,524 | ||||||||||||||||||||||||
2007 | 395,000 | - | 728,000 | 284,671 | 709,924 | - | 158,982 | 2,276,577 | |||||||||||||||||||||||||
Thomas Waldhier (3)(4)(5) | 2009 | 429,660 | 279,340 | 1,320,525 | - | 619,524 | 117,519 | 43,956 | 2,810,524 | ||||||||||||||||||||||||
President, BERU | |||||||||||||||||||||||||||||||||
John G. Sanderson (6) | 2009 | 322,878 | - | 1,331,652 | - | 338,498 | - | 54,802 | 2,047,830 | ||||||||||||||||||||||||
President, Drivetrain Systems | |||||||||||||||||||||||||||||||||
Bernd W. Matthes (4)(7) | 2009 | 211,651 | - | 928,676 | - | 596,983 | - | 669,962 | 2,407,272 | ||||||||||||||||||||||||
Former President, Transmission Systems | 2008 | 405,000 | - | 781,324 | - | - | - | 162,825 | 1,349,149 | ||||||||||||||||||||||||
2007 | 365,000 | - | 532,000 | 207,244 | 326,478 | - | 321,672 | 1,752,394 |
(1) | The aggregate values in | |
(2) The values in column (g) reflect payments made under the Management Incentive Plan (MIP), including Carryover Bonus payments. The | ||
(3) Compensation reported for Dr. Waldhier is converted to US Dollars using an exchange rate of 1 Euro = 1.3967 USD, which is a periodic average rate for 2009. | ||
(4) | The actual change in the present value of the accumulated pension value increased for Dr. Matthes in 2009 by $85,194 leaving a remaining balance of ($8,406) when netted against last year’s balance. The change in Pension Value for 2009 for both Dr. Waldhier and Dr. Matthes was converted from Euros to US Dollars using an exchange rate of 1 Euro = 1.3967 US Dollar. The actual change in the present value of the accumulated pension value increased for Dr. Matthes in 2008 by $5,308 leaving a remaining balance of ($93,600) when netted against last year’s balance. |
21
(5) The value reported in column (d) represents a special one-time recognition and retention cash payment. | ||
(6) Mr. Sanderson joined BorgWarner Inc. as an officer on February 23, 2009. | ||
(7) Dr. Matthes |
Registrant | ||||||||||||||||||||||||||||||||||||
Personal | Personal | Contributions to | Total | |||||||||||||||||||||||||||||||||
Use of | Use of | Defined | of “All | |||||||||||||||||||||||||||||||||
Leased | Financial | Company | Club | Relocation | Tuition | Tax | Contribution | Other | ||||||||||||||||||||||||||||
Vehicle | Counseling | Aircraft | Memberships | Costs (1) | Reimbursement | Reimbursement | Plans (2) | Compensation” | ||||||||||||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||
Timothy M. Manganello | 18,673 | 10,400 | 6,626 | 1,064 | — | — | 13,027 | 484,582 | 534,372 | |||||||||||||||||||||||||||
CEO | ||||||||||||||||||||||||||||||||||||
Robin J. Adams | 12,409 | 10,400 | 1,469 | — | — | — | 11,027 | 206,325 | 241,630 | |||||||||||||||||||||||||||
CFO | ||||||||||||||||||||||||||||||||||||
Roger J. Wood | 8,679 | 10,400 | 2,643 | — | — | — | 11,788 | 166,929 | 200,439 | |||||||||||||||||||||||||||
President, TES | ||||||||||||||||||||||||||||||||||||
Bernd W. Matthes | 5,912 | 10,400 | 501 | — | 44,137 | 480 | 24,512 | 76,883 | 162,825 | |||||||||||||||||||||||||||
President, TS | ||||||||||||||||||||||||||||||||||||
Alfred Weber | 12,495 | 10,400 | 3,427 | 6,019 | — | — | 19,198 | 86,066 | 137,605 | |||||||||||||||||||||||||||
President, MT/T |
Personal Use of Leased Vehicle | Financial Counseling | Personal Use of Company Aircraft | Club Memberships | Tax Reimbursement | Registrant Contributions to Defined Contribution Plans (1) | German Supplemental Insurance Contributions | Separation Payments | TOTAL of "All Other Compensation" | ||||||||||||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||
Timothy M. Manganello | 20,863 | 10,820 | 13,086 | 1,228 | 20,361 | 133,247 | - | - | 199,605 | |||||||||||||||||||||||||||
Robin J. Adams | 11,920 | 10,820 | - | - | 7,662 | 58,357 | - | - | 88,759 | |||||||||||||||||||||||||||
Roger J. Wood | 4,553 | 10,820 | 417 | - | 8,213 | 133,959 | - | - | 157,962 | |||||||||||||||||||||||||||
Thomas Waldhier (2) | 27,886 | - | - | - | - | - | 16,070 | - | 43,956 | |||||||||||||||||||||||||||
John G. Sanderson | 9,141 | 10,035 | 834 | 905 | 7,788 | 26,099 | - | - | 54,802 | |||||||||||||||||||||||||||
Bernd W. Matthes (3) | 6,321 | 7,215 | - | - | 5,837 | 19,510 | - | 631,079 | 669,962 | |||||||||||||||||||||||||||
(1) Amounts contributed by the Company on behalf of its Named Executive officers during 2009 pursuant to the provisions of the RSP and the Excess Plan. | ||||||||||||||||||||||||||||||||||||
(2) Reimbursements for Health Insurance of €3,286, Accident Insurance of €180, and German Old Age and Unemployment Insurance Programs of €8,040 per the German employment contract of Dr. Waldhier. Compensation reported for Dr. Waldhier is converted to US Dollar using an exchange rate of 1 Euro = 1.3967 USD, which is a periodic average rate for 2009. | ||||||||||||||||||||||||||||||||||||
(3) Payments in connection with the resignation of Dr. Matthes as disclosed in a current report on Form 8-K filed on August 13, 2009. The amount includes $304,000 as a Separation Payment, $304,000 as payment for vacation obligations owed and as partial consideration for his non-competition agreement, $7,000 in Outplacement Services, and $16,079 in potential "COBRA" medical insurance premium payments. The medical insurance payments would cease should Dr. Matthes become eligible for benefits under another company's plan. |
The following table details the tax reimbursement amounts listed in Column (f) of the above table. These reimbursements will be eliminated in 2010. | ||||||||||||||||||||
Tax Reimbursement for Personal Use of Leased Vehicle | Tax Reimbursement for Financial Counseling Services | Tax Reimbursement for Personal Use of Company Aircraft | Tax Reimbursement for Club Memberships | Total Tax Reimbursement | ||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | |||||||||||||||
Timothy M. Manganello | 2,846 | 7,457 | 3,894 | 6,164 | 20,361 | |||||||||||||||
Robin J. Adams | 2,846 | 4,816 | - | - | 7,662 | |||||||||||||||
Roger J. Wood | 1,891 | 6,136 | 186 | - | 8,213 | |||||||||||||||
Thomas Waldhier | - | - | - | - | - | |||||||||||||||
John G. Sanderson | 2,846 | 2,408 | 371 | 2,163 | 7,788 | |||||||||||||||
Bernd W. Matthes | 2,626 | 3,211 | - | - | 5,837 | |||||||||||||||
Tax | Tax | |||||||||||||||||||||||||||
Reimbursement | Tax | Reimbursement | ||||||||||||||||||||||||||
for Personal | Reimbursement | for Personal | Tax | Tax | Tax | |||||||||||||||||||||||
Use of | for Financial | Use of | Reimbursement | Reimbursement | Reimbursement | Total | ||||||||||||||||||||||
Leased | Counseling | Company | for Club | for Relocation | for Tuition | Tax | ||||||||||||||||||||||
Vehicle | Services | Aircraft | Memberships | Costs | Reimbursement | Reimbursement | ||||||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | |||||||||||||||||||||
Timothy M. Manganello | 2,846 | 7,168 | 3,013 | — | — | — | 13,027 | |||||||||||||||||||||
CEO | ||||||||||||||||||||||||||||
Robin J. Adams | 2,846 | 7,168 | 1,013 | — | — | — | 11,027 | |||||||||||||||||||||
CFO | ||||||||||||||||||||||||||||
Roger J. Wood | 2,798 | 7,168 | 1,822 | — | — | — | 11,788 | |||||||||||||||||||||
President, TBS/E | ||||||||||||||||||||||||||||
Bernd W. Matthes | 2,456 | 7,168 | 346 | — | 14,211 | 331 | 24,512 | |||||||||||||||||||||
President, TS | ||||||||||||||||||||||||||||
Alfred Weber | 3,210 | 8,105 | 2,671 | 5,212 | — | — | 19,198 | |||||||||||||||||||||
President, MT/T |
22
The following table summarizes the grants of equity and non-equity plan awards to our Named Executive Officers in 2009: | |||||||||||||||||||||||||||||||||||||||||
All Other Stock Awards: Number of Shares or Stock Units | All Other Option Awards: Number of Securities Underlying Option | Exercise or Base Price of Option Awards | Grant Date Fair Value of Stock and Option Awards | ||||||||||||||||||||||||||||||||||||||
Estimated Possible Payout Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payout Under Equity Incentive Plan Awards | ||||||||||||||||||||||||||||||||||||||||
Threshold | Target | Maximum | Threshold | Target | Maximum | ||||||||||||||||||||||||||||||||||||
Name | Grant Date | ($) | ($) | ($) | (#) | (#) | (#) | (#) | (#) | ($/Share) | ($) | ||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (k) | (l) | ||||||||||||||||||||||||||||||
Timothy M. Manganello | 715,000 | 1,430,000 | 2,860,000 | ||||||||||||||||||||||||||||||||||||||
3/25/2009 (2) | 41,675 | 166,700 | 333,400 | 3,515,703 | |||||||||||||||||||||||||||||||||||||
2/10/2009 (3) | 70,650 | - | - | 1,436,315 | |||||||||||||||||||||||||||||||||||||
Robin J. Adams | 296,625 | 593,250 | 1,186,500 | ||||||||||||||||||||||||||||||||||||||
3/25/2009 (2) | 15,625 | 62,500 | 125,000 | 1,318,125 | |||||||||||||||||||||||||||||||||||||
2/10/2009 (3) | 26,505 | - | - | 538,847 | |||||||||||||||||||||||||||||||||||||
Roger J. Wood | 229,204 | 458,408 | 916,816 | ||||||||||||||||||||||||||||||||||||||
3/25/2009 (2) | 9,375 | 37,500 | 75,000 | 790,875 | |||||||||||||||||||||||||||||||||||||
2/10/2009 (3) | 15,905 | - | - | 323,349 | |||||||||||||||||||||||||||||||||||||
Thomas Waldhier | 168,129 | 336,256 | 672,511 | ||||||||||||||||||||||||||||||||||||||
3/25/2009 (2) | 6,250 | 25,000 | 50,000 | 527,250 | |||||||||||||||||||||||||||||||||||||
2/10/2009 (4) | 2,825 | 11,300 | 19,775 | 222,384 | |||||||||||||||||||||||||||||||||||||
2/10/2009 (4) | 3,900 | 15,600 | 27,300 | 307,008 | |||||||||||||||||||||||||||||||||||||
2/10/2009 (5) | 12,980 | - | - | 263,883 | |||||||||||||||||||||||||||||||||||||
John G. Sanderson | 169,250 | 338,498 | 676,998 | ||||||||||||||||||||||||||||||||||||||
3/25/2009 (2) | 7,825 | 31,300 | 62,600 | 660,117 | |||||||||||||||||||||||||||||||||||||
2/25/2009 (6) | 3,325 | 13,300 | 23,275 | 235,410 | |||||||||||||||||||||||||||||||||||||
2/25/2009 (6) | 2,850 | 11,400 | 19,950 | 201,780 | |||||||||||||||||||||||||||||||||||||
2/25/2009 (7) | 13,210 | - | - | 234,345 | |||||||||||||||||||||||||||||||||||||
Bernd W. Matthes | 182,250 | 364,500 | 729,000 | ||||||||||||||||||||||||||||||||||||||
3/25/2009 (2)(8) | 7,825 | 31,300 | 62,600 | 660,117 | |||||||||||||||||||||||||||||||||||||
2/10/2009 (3)(8) | 13,210 | - | - | 268,559 | |||||||||||||||||||||||||||||||||||||
(1) 2009 bonus opportunity under the MIP. Estimated possible payout levels do not reflect carryover opportunities for the prior years. Dr. Waldhier's Non-Equity Incentive Plan threshold, target, and maximum payout values are converted to US Dollar using an exchange rate of 1 Euro = 1.3967 USD, which is a periodic average rate for 2009. Dr. Matthes' award levels reflect the full year opportunity. His actual payout was prorated to reflect his termination date. | |||||||||||||||||||||||||||||||||||||||||
(2) 2009 Performance Share Grant: Value of grant = number of target shares times the closing stock price on grant date of $21.09. | |||||||||||||||||||||||||||||||||||||||||
(3) 2009 Restricted Stock Grant: Granted same day as approved by Compensation Committee of the Board of Directors. | |||||||||||||||||||||||||||||||||||||||||
FMV at grant date = number of restricted shares times the average of the high and low stock price on February 10, 2009 of $20.33 in accordance with ASC Topic 718. | |||||||||||||||||||||||||||||||||||||||||
(4) Pro-rated portion for 2008 and 2007 Performance Share Grant: Value of grant = number of target shares times the closing stock price on grant date of $19.68. | |||||||||||||||||||||||||||||||||||||||||
(5) 2009 Stock Unit Grant: Granted same day as approved by Compensation Committee of the Board of Directors. Stock units are granted outside the U.S. for tax purposes. | |||||||||||||||||||||||||||||||||||||||||
FMV at grant date = number of restricted shares times the average of the high and low stock price on February 10, 2009 of $20.33 in accordance with ASC Topic 718. | |||||||||||||||||||||||||||||||||||||||||
(6) Pro-rated portion for 2008 and 2007 Performance Share Grant: Value of grant = number of target shares times the closing stock price on grant date of $17.70. | |||||||||||||||||||||||||||||||||||||||||
(7) 2009 Restricted Stock Grant: Value of grant = number of target shares times the average of the high and low stock price on the day of grant of $17.74. | |||||||||||||||||||||||||||||||||||||||||
(8) Grant forfeited on August 7, 2009 in connection with the resignation of Dr. Matthes as disclosed in a current report on Form 8-K filed on August 13, 2009. |
All Other | ||||||||||||||||||||||||||||||||||||||||||||||||
All Other | Option | Grant Date | ||||||||||||||||||||||||||||||||||||||||||||||
Stock | Awards: | Fair | ||||||||||||||||||||||||||||||||||||||||||||||
Estimated Possible Payout Under | Estimated Future Payout | Awards: | Number of | Exercise or | Value of | |||||||||||||||||||||||||||||||||||||||||||
Non-Equity Incentive Plan | Under | Number of | Securities | Base Price | Stock and | |||||||||||||||||||||||||||||||||||||||||||
Awards(1) | Equity Incentive Plan Awards | Shares or | Underlying | of Option | Option | |||||||||||||||||||||||||||||||||||||||||||
Threshold | Target | Maximum | Threshold | Target | Maximum | Stock Units | Option | Awards | Awards | |||||||||||||||||||||||||||||||||||||||
Name | Grant Date | ($) | ($) | ($) | (#) | (#) | (#) | (#) | (#) | ($/Share) | ($) | |||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (k) | (l) | |||||||||||||||||||||||||||||||||||||
Timothy M. Manganello | 715,000 | 1,430,000 | 2,860,000 | |||||||||||||||||||||||||||||||||||||||||||||
CEO | 2/6/2008 | (2) | 16,375 | 65,500 | 114,625 | 2,971,080 | ||||||||||||||||||||||||||||||||||||||||||
2/6/2008 | (3) | 27,665 | 1,281,858 | |||||||||||||||||||||||||||||||||||||||||||||
Robin J. Adams | 296,625 | 593,250 | 1,186,500 | |||||||||||||||||||||||||||||||||||||||||||||
CFO | 2/6/2008 | (2) | 5,300 | 21,200 | 37,100 | 961,632 | ||||||||||||||||||||||||||||||||||||||||||
2/6/2008 | (3) | 9,010 | 417,478 | |||||||||||||||||||||||||||||||||||||||||||||
Roger J. Wood | 204,000 | 408,000 | 816,000 | |||||||||||||||||||||||||||||||||||||||||||||
President, TES | 2/6/2008 | (2) | 3,775 | 15,100 | 26,425 | 684,936 | ||||||||||||||||||||||||||||||||||||||||||
2/6/2008 | (3) | 6,425 | 297,702 | |||||||||||||||||||||||||||||||||||||||||||||
Bernd W. Matthes | 172,125 | 344,250 | 688,500 | |||||||||||||||||||||||||||||||||||||||||||||
President, TS | 2/6/2008 | (2) | 3,000 | 12,000 | 21,000 | 544,320 | ||||||||||||||||||||||||||||||||||||||||||
2/6/2008 | (3) | 5,115 | 237,004 | |||||||||||||||||||||||||||||||||||||||||||||
Alfred Weber | 172,125 | 344,250 | 688,500 | |||||||||||||||||||||||||||||||||||||||||||||
President, MT/T | 2/6/2008 | (2) | 3,000 | 12,000 | 21,000 | 544,320 | ||||||||||||||||||||||||||||||||||||||||||
2/6/2008 | (3) | 5,115 | 237,004 |
American Axle | Johnson Controls Inc. | Tenneco Automotive Inc. | ||
ArvinMeritor Inc. | Lear Corporation | TRW Automotive Inc. | ||
Autoliv Inc. | Magna International Inc. | Visteon Corporation | ||
Gentex Corporation | Modine Manufacturing Co. |
Outstanding Equity Awards at Fiscal Year-End | ||||||||||||||||||||||||||||||||||||
Option Awards | Stock Awards | |||||||||||||||||||||||||||||||||||
Number of Securities Underlying Unexercised Options Exercisable | Number of Securities Underlying Unexercised Options Unexercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options | Option Exercise Price | Option Expiration Date (1) | Number of Shares or Units of Stock That Have Not Vested (2) | Market Value of Shares or Units of Stock That Have Not Vested (2) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (3) | Equity Incentive Plan Awards: Market or Payout of Unearned Shares, Units or Other Rights That Have Not Vested (3) | ||||||||||||||||||||||||||||
Name | (#) | (#) | (#) | ($) | (#) | ($) | (#) | ($) | ||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||
Timothy M. Manganello | 57,420 | 57,420 | - | 34.95 | 02/06/2017 | |||||||||||||||||||||||||||||||
100,000 | 29.09 | 07/26/2016 | ||||||||||||||||||||||||||||||||||
124,000 | 29.04 | 07/27/2015 | ||||||||||||||||||||||||||||||||||
25,072 | 22.28 | 07/28/2014 | ||||||||||||||||||||||||||||||||||
23,064 | 12.66 | 07/24/2012 | ||||||||||||||||||||||||||||||||||
2,304 | 12.07 | 07/25/2011 | ||||||||||||||||||||||||||||||||||
228,059 | 7,576,120 | |||||||||||||||||||||||||||||||||||
448,025 | 14,883,391 | |||||||||||||||||||||||||||||||||||
Robin J. Adams | 21,730 | 21,730 | - | 34.95 | 02/06/2017 | |||||||||||||||||||||||||||||||
40,000 | 29.09 | 07/26/2016 | ||||||||||||||||||||||||||||||||||
30,000 | 29.04 | 07/27/2015 | ||||||||||||||||||||||||||||||||||
25,926 | 22.28 | 07/28/2014 | ||||||||||||||||||||||||||||||||||
40,000 | 22.15 | 04/26/2014 | ||||||||||||||||||||||||||||||||||
35,666 | 1,184,825 | |||||||||||||||||||||||||||||||||||
162,100 | 5,384,962 | |||||||||||||||||||||||||||||||||||
Roger J. Wood | 13,530 | 13,530 | - | 34.95 | 02/06/2017 | |||||||||||||||||||||||||||||||
28,000 | 29.09 | 07/26/2016 | ||||||||||||||||||||||||||||||||||
20,000 | 29.04 | 07/27/2015 | ||||||||||||||||||||||||||||||||||
14,686 | 22.28 | 07/28/2014 | ||||||||||||||||||||||||||||||||||
14,732 | 16.52 | 07/23/2013 | ||||||||||||||||||||||||||||||||||
22,438 | 745,390 | |||||||||||||||||||||||||||||||||||
101,425 | 3,369,339 | |||||||||||||||||||||||||||||||||||
Thomas Waldhier | 12,980 | 431,196 | ||||||||||||||||||||||||||||||||||
- | - | - | - | - | 69,775 | 2,317,926 | ||||||||||||||||||||||||||||||
John G. Sanderson | 13,210 | 438,836 | ||||||||||||||||||||||||||||||||||
- | - | - | - | - | 85,875 | 2,852,768 | ||||||||||||||||||||||||||||||
Bernd W. Matthes | 9,850 | 34.95 | 08/07/2012 | |||||||||||||||||||||||||||||||||
21,000 | 29.09 | 08/07/2012 | ||||||||||||||||||||||||||||||||||
16,000 | - | - | 29.04 | 08/07/2012 | - | - | - | - | ||||||||||||||||||||||||||||
6,840 | 22.28 | 08/07/2012 | ||||||||||||||||||||||||||||||||||
(1) The stock options noted with expiration dates of 2011, 2012, 2013, 2014, 2015 and 2016 are fully vested. Stock options with an expiration date of 2017 are 50% vested, with the other 50% vesting on February 6, 2010. Stock options were not granted in 2008 or 2009. | ||||||||||||||||||||||||||||||||||||
(2) The values in column (g) represent the number of restricted shares of stock and/or stock units granted in 2008 and 2009, plus reinvested dividends and/or dividend equivalents. The dollar value in column (h) is calculated using the closing stock price on December 31, 2009 of $33.22 per share. For Mr. Manganello, this also includes the remaining unvested shares (129,281) from the August 3, 2007 Recognition and Retention Grant, plus reinvested dividend equivalents. | ||||||||||||||||||||||||||||||||||||
(3) The values of columns (i) and (j) are comprised of performance share grants made under the SIP, issued for the performance periods of 2008-2010 and 2009-2011. Column (i) represents the number of all outstanding unearned performance shares that would be paid out at the end of each performance period if maximum TSR performance is achieved. The maximum value was assumed based on actual performance over the most recent period at maximum levels. Column (j) represents the number of performance shares in column (i) times the closing stock price of $33.22 on December 31, 2009. Actual future payouts will depend on several factors, including (i) the number of performance shares that are earned, as determined after the end of the performance period based on the level at which the applicable performance goals have been achieved, as described on pages 22 -23; and (ii) the fair market value of stock, as defined in the SIP. |
Stock Awards | ||||||||||||||||||||||||||||||||||||
Option Awards | Equity | Equity Incentive | ||||||||||||||||||||||||||||||||||
Equity Incentive | Incentive | Plan Awards: | ||||||||||||||||||||||||||||||||||
Plan Awards: | Market Value of | Plan Awards: | Market or | |||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Number of | Shares or | Number of | Payout of | ||||||||||||||||||||||||||||||
Securities | Securities | Securities | Shares or | Units | Unearned | Unearned | ||||||||||||||||||||||||||||||
Underlying | Underlying | Underlying | Units | of Stock | Shares, Units or | Shares, Units | ||||||||||||||||||||||||||||||
Unexercised | Unexercised | Unexercised | Option | of Stock That | That | Other Rights | or Other Rights | |||||||||||||||||||||||||||||
Options | Options | Unearned | Exercise | Option | Have Not | Have Not | That Have Not | That Have Not | ||||||||||||||||||||||||||||
Exercisable | Unexercisable | Options | Price | Expiration | Vested (2) | Vested (2) | Vested (3) | Vested (3) | ||||||||||||||||||||||||||||
Name | (#) | (#) | (#) | (#) | Date (1) | (#) | ($) | (#) | ($) | |||||||||||||||||||||||||||
(e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | |||||||||||||||||||||||||||||||||
Timothy M. Manganello | 114,840 | 34.95 | 02/06/2017 | |||||||||||||||||||||||||||||||||
CEO | 50,000 | 50,000 | 29.09 | 07/26/2016 | ||||||||||||||||||||||||||||||||
124,000 | 29.04 | 07/27/2015 | ||||||||||||||||||||||||||||||||||
25,072 | 22.28 | 07/28/2014 | ||||||||||||||||||||||||||||||||||
23,064 | 12.66 | 07/24/2012 | ||||||||||||||||||||||||||||||||||
2,304 | 12.07 | 07/25/2011 | 220,796 | 4,806,729 | ||||||||||||||||||||||||||||||||
268,625 | 5,847,966 | |||||||||||||||||||||||||||||||||||
Robin J. Adams | 43,460 | 34.95 | 02/06/2017 | |||||||||||||||||||||||||||||||||
CFO | 20,000 | 20,000 | 29.09 | 07/26/2016 | ||||||||||||||||||||||||||||||||
30,000 | 29.04 | 07/27/2015 | ||||||||||||||||||||||||||||||||||
25,926 | 22.28 | 07/28/2014 | ||||||||||||||||||||||||||||||||||
40,000 | 22.15 | 04/26/2014 | ||||||||||||||||||||||||||||||||||
9,109 | 198,303 | |||||||||||||||||||||||||||||||||||
95,550 | 2,080,124 | |||||||||||||||||||||||||||||||||||
Roger J. Wood | 27,060 | 34.95 | 02/06/2017 | |||||||||||||||||||||||||||||||||
President, TES | 14,000 | 14,000 | 29.09 | 07/26/2016 | ||||||||||||||||||||||||||||||||
20,000 | 29.04 | 07/27/2015 | ||||||||||||||||||||||||||||||||||
14,686 | 22.28 | 07/28/2014 | ||||||||||||||||||||||||||||||||||
14,732 | 16.52 | 07/23/2013 | ||||||||||||||||||||||||||||||||||
6,496 | 141,418 | |||||||||||||||||||||||||||||||||||
62,825 | 1,367,700 | |||||||||||||||||||||||||||||||||||
Bernd W. Matthes | 19,700 | 34.95 | 02/06/2017 | |||||||||||||||||||||||||||||||||
President, TS | 10,500 | 10,500 | 29.09 | 07/26/2016 | ||||||||||||||||||||||||||||||||
16,000 | 29.04 | 07/27/2015 | ||||||||||||||||||||||||||||||||||
6,840 | 22.28 | 07/28/2014 | ||||||||||||||||||||||||||||||||||
5,171 | 112,573 | |||||||||||||||||||||||||||||||||||
47,600 | 1,036,252 | |||||||||||||||||||||||||||||||||||
Alfred Weber | 23,760 | 34.95 | 02/06/2017 | |||||||||||||||||||||||||||||||||
President, MT/T | 11,000 | 11,000 | 29.09 | 07/26/2016 | ||||||||||||||||||||||||||||||||
16,000 | 29.04 | 07/27/2015 | ||||||||||||||||||||||||||||||||||
5,171 | 112,573 | |||||||||||||||||||||||||||||||||||
52,850 | 1,150,545 |
The following table summarizes all option exercises and stock vestings by our Named Executive Officers during 2009: | ||||||||||||||||
Option Awards | Stock Awards | |||||||||||||||
Number of Shares Acquired on Exercise | Value Realized On Exercise | Number of Shares Acquired on Vesting (1) | Value Realized On Vesting (2) | |||||||||||||
Name | (#) | ($) | (#) | ($) | ||||||||||||
(a) | (b) | (c) | (d) | (e) | ||||||||||||
Timothy M. Manganello | - | - | 218,641 | 7,316,889 | ||||||||||||
Robin J. Adams | - | - | 58,450 | 1,941,709 | ||||||||||||
Roger J. Wood | - | - | 36,400 | 1,209,208 | ||||||||||||
Thomas Waldhier | - | - | 27,300 | 906,906 | ||||||||||||
John G. Sanderson | - | - | 19,950 | 662,739 | ||||||||||||
Bernd W. Matthes | - | - | 23,644 | 785,454 | ||||||||||||
(1) Number of "shares" disclosed in column (d) represents the total number of performance shares earned for the 2007-2009 performance period and paid in 2010. The performance shares are actually paid 60% in stock and 40% in cash. For Mr. Manganello, this also includes 64,641 shares from the 2009 vesting of the August 3, 2007 Recognition and Retention Grant, including vested dividends. The receipt of all vested shares is deferred until the termination of Mr. Manganello's employment. Details of this grant were disclosed in a current report on Form 8-K filed on August 7, 2007. | ||||||||||||||||
(2) Amount in column (e) is equal to the number of performance shares vested multiplied by $33.22, which is the closing stock price at the end of the performance period on December 31, 2009. For Mr. Manganello, this also includes the 2009 vesting of the August 3, 2007 Recognition and Retention Grant. The total value, $2,201,009 including dividends, is equal to the FMV at the time of vesting, which is the average of the high and low stock price on the date of vesting. |
Option Awards | Stock Awards | |||||||||||||||
Number of | Number of | |||||||||||||||
Shares | Shares | Value | ||||||||||||||
Acquired on | Value Realized | Acquired on | Realized On | |||||||||||||
Exercise | On Exercise | Vesting (1) | Vesting (2) | |||||||||||||
Name | (#) | ($) | (#) | ($) | ||||||||||||
(a) | (b) | (c) | (d) | (e) | ||||||||||||
Timothy M. Manganello | — | — | 221,775 | 5,999,568 | ||||||||||||
CEO | ||||||||||||||||
Robin J. Adams | — | — | 42,000 | 914,340 | ||||||||||||
CFO | ||||||||||||||||
Roger J. Wood | — | — | 38,500 | 838,145 | ||||||||||||
President, TES | ||||||||||||||||
Bernd W. Matthes | — | — | 28,350 | 617,180 | ||||||||||||
President, TS | ||||||||||||||||
Alfred Weber | — | — | 32,200 | 700,994 | ||||||||||||
President, MT/T |
25
Number of Years Credited Service | Present Value of Accumulated Benefit (1) | Payment During Last Fiscal Year | |||||||||||
Name | Plan Name | (#) | ($) | ($) | |||||||||
(a) | (b) | (c) | (d) | (e) | |||||||||
Timothy M. Manganello | - | - | - | ||||||||||
Robin J. Adams | - | - | - | ||||||||||
Roger J. Wood | - | - | - | ||||||||||
Thomas Waldhier | Vereinbarung zur betrieblichen Altersversorgung | 2.3 | 237,848 | - | |||||||||
"Agreement regarding a Company Pension" | |||||||||||||
John G. Sanderson | - | - | - | ||||||||||
Bernd W. Matthes | BorgWarner Transmission Systems GmbH Pension Plan | 11.8 | 668,943 | - | |||||||||
(1) Converted from Euro to US Dollar using an exchange rate of 1 Euro = 1.3967 US Dollar, which is a periodic average rate for 2009. |
Number of | Present | |||||||||||||
Years | Value of | Payment | ||||||||||||
Credited | Accumulated | During Last | ||||||||||||
Service | Benefit (1) | Fiscal Year | ||||||||||||
Name | Plan Name | (#) | ($) | ($) | ||||||||||
(a) | (b) | (c) | (d) | (e) | ||||||||||
Timothy M. Manganello | — | — | — | |||||||||||
CEO | ||||||||||||||
Robin J. Adams | — | — | — | |||||||||||
CFO | ||||||||||||||
Roger J. Wood | — | — | — | |||||||||||
President, TES | ||||||||||||||
Bernd W. Matthes President, TS | BorgWarner Transmission Systems GmbH Pension Plan | 11.8 | 598,334 | — | ||||||||||
Alfred Weber President, MT/T | Richtlinien für einzelvertragliche Pensionszusagen “Guidelines for single contractual pension promises” | 13.0 | 78,352 | — |
26
Executive | Registrant | Aggregate | Aggregate | Aggregate | ||||||||||||||||
Contributions | Contributions | Earnings in | Withdrawals/ | Balance at | ||||||||||||||||
in Last FY | in Last FY | Last FY | Distributions | Last FYE | ||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | |||||||||||||||
Timothy M. Manganello CEO | ||||||||||||||||||||
(1) | — | — | — | — | — | |||||||||||||||
(2) | — | 460,957 | (844,199 | ) | — | 1,412,082 | ||||||||||||||
Robin J. Adams CFO | ||||||||||||||||||||
(1) | — | — | — | — | — | |||||||||||||||
(2) | — | 181,525 | (159,504 | ) | — | 369,107 | ||||||||||||||
Roger J. Wood President, TES | ||||||||||||||||||||
(1) | — | — | (103,800 | ) | — | 169,751 | ||||||||||||||
(2) | — | 139,189 | (200,187 | ) | — | 425,047 | ||||||||||||||
Bernd W. Matthes President, TS | ||||||||||||||||||||
(1) | — | — | — | — | — | |||||||||||||||
(2) | — | 55,163 | (25,084 | ) | — | 92,083 | ||||||||||||||
Alfred Weber President, MT/T | ||||||||||||||||||||
(1) | — | — | — | — | — | |||||||||||||||
(2) | — | 60,766 | (150,754 | ) | — | 240,299 |
The Present Value of the Accumulated Pension Benefits as of December 31, 2009 for Dr. Waldhier and Dr. Matthes are calculated using the following assumptions: ·Mortality Tables: Heubeck 2005G ·Discount Rate: 5.50% ·Retirement Age: 65 ·Annual Pension Increase: 1.75% |
The following table shows then on-qualified deferred compensation activity for our Named Executive Officers during 2009. | ||||||||||||||||||||||
Executive Contributions in Last FY | Registrant Contributions in Last FY | Aggregate Earnings in Last FY | Aggregate Withdrawals/ Distributions | Aggregate Balance at Last FYE | ||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | |||||||||||||||||
Timothy M. Manganello | ||||||||||||||||||||||
(1 | ) | - | - | - | - | |||||||||||||||||
(2 | ) | - | 109,952 | 481,770 | - | 2,003,803 | ||||||||||||||||
(3 | ) | - | 2,201,009 | 694,434 | - | 4,294,715 | ||||||||||||||||
Robin J. Adams | ||||||||||||||||||||||
(1 | ) | - | - | - | - | - | ||||||||||||||||
(2 | ) | - | 33,718 | 97,217 | - | 500,042 | ||||||||||||||||
Roger J. Wood | ||||||||||||||||||||||
(1 | ) | - | - | 47,527 | 43,449 | 173,829 | ||||||||||||||||
(2 | ) | - | 103,808 | 147,632 | - | 676,486 | ||||||||||||||||
Thomas Waldhier | ||||||||||||||||||||||
(4 | ) | - | - | 3,711 | - | 28,730 | ||||||||||||||||
John G. Sanderson | ||||||||||||||||||||||
(1 | ) | - | - | - | - | - | ||||||||||||||||
(2 | )(5) | - | 8,566 | 70 | - | 8,636 | ||||||||||||||||
Bernd W. Matthes | ||||||||||||||||||||||
(1 | ) | - | - | - | - | - | ||||||||||||||||
(2 | ) | - | - | 20,287 | - | 112,371 | ||||||||||||||||
(1) Deferred Compensation Plan. No deferred compensation elections were made by | ||||||||||||||||||||||
Named Executive Officers for fiscal year 2009 as the plan was closed. | ||||||||||||||||||||||
(2) Excess Plan | ||||||||||||||||||||||
(3) August 3, 2007 Recognition and Retention Grant. Mr. Manganello is vested in 50% of the award. However, the actual receipt of the shares will not occur until termination of his employment as specified under the Award Agreement. | ||||||||||||||||||||||
(4) Contractual Trust Agreement for Dr. Waldhier. Converted to US Dollar using an exchange rate of 1 Euro = 1.3967 USD, which is a periodic average rate for 2009. | ||||||||||||||||||||||
(5) All amounts subject to vesting and forfeiture. |
27
Blackrock Equity Index | 26.85% | ||||
Blackrock Life Path 2015 | 19.97% | ||||
Blackrock Life Path | 22.44% | ||||
Blackrock Life Path | 24.83% | ||||
Blackrock Life Path | 26.70% | ||||
Blackrock Life Path | 28.74% | ||||
Blackrock Life Path | 30.34% | ||||
Blackrock Life Path | 31.74% | ||||
Blackrock Life Path | 33.66% | ||||
Blackrock Life Path | 16.49% | ||||
BTC US Debt Index | 5.98% | ||||
BorgWarner Company Stock | 53.61% | ||||
Buffalo Small Cap | 37.49% | ||||
Harbor International Fund | 38.57% | ||||
TRP Stable Value Fund, Sched | 4.15% | ||||
Vanguard Mid Cap | 40.51% |
28
DWS Institutional Euroland Equities | 31.10% | |
DWS Institutional Euro Government Bonds | 3.54% | |
DWS Institutional Money Plus | 0.89% |
Payment Triggering Events In Connection with a CoC | ||||||||||||||||||||
Involuntary Termination | Voluntary Termination | |||||||||||||||||||
CoC only | with Cause | without Cause (1) | with Good Reason (1) | without Good Reason (2) | ||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
(a) | (b) | (c) | (d) | (e) | ||||||||||||||||
Timothy M. Manganello | - | - | 23,471,677 | 23,471,677 | 10,872,653 | |||||||||||||||
Robin J. Adams | - | - | 7,803,056 | 7,803,056 | 2,346,417 | |||||||||||||||
Roger J. Wood | - | - | 7,113,916 | 7,113,916 | 1,495,055 | |||||||||||||||
Thomas Waldhier | - | - | 955,518 | 955,518 | 955,518 | |||||||||||||||
John G. Sanderson | - | - | 3,474,116 | 3,474,116 | 1,079,982 | |||||||||||||||
Bernd W. Matthes | - | - | - | - | - | |||||||||||||||
(1) For all Named Executive Officers, except Dr. Waldhier, includes cash severance payment based on three times the average of base plus bonus, value of unvested stock options, value of unvested restricted stock, value of unvested August 3, 2007 Recognition and Retention Grant (Mr. Manganello only), prorated 2008-2010 and 2009-2011 performance share payments, retirement benefit based on three times the 2009 Company contributions to the RSP, value of welfare benefits (i.e. health care, life insurance, and disability insurance coverage for 3 years), outplacement services, and excise tax and tax gross-up payment (except Mr. Sanderson). Dr. Waldhier does not have a separate Change of Control Employment Agreement. Compensation reported for Dr. Waldhier in connection with a CoC includes value of unvested restricted stock units and prorated 2008-2010 and 2009-2011 performance share payments. Compensation is converted to US Dollar using an exchange rate of 1 Euro = 1.3967 USD, which is a periodic average rate for 2009. | ||||||||||||||||||||
(2) Includes the value of unvested stock options, value of unvested restricted stock, prorated 2008-2010 and 2009-2011 performance share payments, and the value of unvested stock units of the August 3, 2007 Recognition and Retention Grant (Mr. Manganello only). |
Payment Triggering Events Not In Connection with a Change of Control (“CoC”) | Payment Triggering Events In Connection with a CoC | |||||||||||||||||||||||||||||||||||||||||||||||
Involuntary Termination | Voluntary Termination | Involuntary Termination | Voluntary Termination | |||||||||||||||||||||||||||||||||||||||||||||
without | with | without | ||||||||||||||||||||||||||||||||||||||||||||||
without | with Good | Good | with | without | Good | Good | ||||||||||||||||||||||||||||||||||||||||||
with Cause (1) | Cause (2) | Reason (3) | Reason (3) | Retirement (2) | Death (4) | Disability (4) | CoC only | Cause (6) | Cause (5) | Reason (5) | Reason (7) | |||||||||||||||||||||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||||||||
Timothy M. Manganello | 1,412,082 | 6,245,731 | 3,043,756 | 3,043,756 | 6,245,731 | 6,854,637 | 6,854,637 | — | 1,412,082 | 23,081,849 | 23,081,849 | 3,043,756 | ||||||||||||||||||||||||||||||||||||
CEO | ||||||||||||||||||||||||||||||||||||||||||||||||
Robin J. Adams | 369,107 | 1,222,967 | 369,107 | 369,107 | 1,222,967 | 1,421,270 | 1,421,270 | — | 369,107 | 7,872,003 | 7,872,003 | 369,107 | ||||||||||||||||||||||||||||||||||||
CFO | ||||||||||||||||||||||||||||||||||||||||||||||||
Roger J. Wood | 594,798 | 1,977,293 | 672,141 | 672,141 | 1,977,293 | 2,118,710 | 2,118,710 | — | 594,798 | 6,074,942 | 6,074,942 | 672,141 | ||||||||||||||||||||||||||||||||||||
President, TES | ||||||||||||||||||||||||||||||||||||||||||||||||
Bernd W. Matthes | 92,083 | 668,438 | 92,083 | 92,083 | 668,438 | 781,011 | 781,011 | — | 92,083 | 3,706,716 | 3,706,716 | 92,083 | ||||||||||||||||||||||||||||||||||||
President, TS | ||||||||||||||||||||||||||||||||||||||||||||||||
Alfred Weber | 240,299 | 894,925 | 240,299 | 240,299 | 894,925 | 1,007,497 | 1,007,497 | — | 240,299 | 4,332,897 | 4,332,897 | 240,299 | ||||||||||||||||||||||||||||||||||||
President, MT/T |
29
· | ||
a lump sum cash amount equal to two or three times his or her annual base salary and average annual bonus for the most recent three years; |
· | ||
a lump sum cash amount equal to two to three times the Company’s retirement contributions that would have been made on his or her behalf in the first year after termination of employment; |
· | ||
for Executives who entered into COC Agreements prior to 2009, a taxgross-up for any excise taxes imposed pursuant to IRC Section 4999 of the |
· | Executives who entered into COC Agreements in or after 2009 may elect to forego a portion of COC payments which could otherwise trigger IRC Section 4999 excise taxes as the tax will not be “grossed-up” under the COC Agreement; |
· | continuation of medical, dental and life insurance benefits for two to three years; and |
outplacement services at a cost not to exceed $40,000. |
Terminations Not Related to a COC |
Fees Earned or Paid in Cash | Stock Awards (1) | Option Awards | Non-Equity Incentive Plan Compensation | Changes in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation | Total | Aggregate Number of Outstanding Stock and Option Awards (2) | |||||||||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (#) | ||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | ||||||||||||||||||||||||
Phyllis O. Bonanno | 64,500 | 258,002 | - | - | - | - | 322,502 | 29,289 | ||||||||||||||||||||||||
David T. Brown | 64,500 | - | - | - | - | - | 64,500 | 3,472 | ||||||||||||||||||||||||
Dennis C. Cuneo (3) | 59,813 | 172,011 | - | - | - | - | 231,824 | 6,193 | ||||||||||||||||||||||||
Jere A. Drummond | 79,000 | - | - | - | - | - | 79,000 | 22,064 | ||||||||||||||||||||||||
John R. McKernan (4) | 28,125 | - | - | - | - | - | 28,125 | - | ||||||||||||||||||||||||
Alexis P. Michas | 69,000 | 258,002 | - | - | - | - | 327,002 | 29,289 | ||||||||||||||||||||||||
Ernest J. Novak, Jr. | 86,000 | - | - | - | - | - | 86,000 | 10,064 | ||||||||||||||||||||||||
Richard O. Schaum | 65,500 | 258,002 | - | - | - | - | 323,502 | 9,289 | ||||||||||||||||||||||||
Thomas T. Stallkamp | 64,500 | 258,002 | - | - | - | - | 322,502 | 9,289 | ||||||||||||||||||||||||
(1) The values in column (c) reported for 2009 represent the grant date fair market value of the restricted stock award granted on April 29, 2009. | ||||||||||||||||||||||||||||||||
FMV at grant date = number of restricted shares times the average of the high and low stock price on April 29, 2009 of $27.775. | ||||||||||||||||||||||||||||||||
(2) Aggregate number of outstanding shares of restricted stock and outstanding vested and unvested stock options at fiscal year-end only. | ||||||||||||||||||||||||||||||||
(3) Mr. Cuneo was appointed to the Board of Directors on February 11, 2009. | ||||||||||||||||||||||||||||||||
(4) Governor McKernan was appointed to the Board of Directors on July 29, 2009. |
Changes in | ||||||||||||||||||||||||||||||||
Aggregate | Pension Value | |||||||||||||||||||||||||||||||
Number of | and | |||||||||||||||||||||||||||||||
Outstanding | Nonqualified | |||||||||||||||||||||||||||||||
Fees Earned | Stock and | Non-Equity | Deferred | |||||||||||||||||||||||||||||
or Paid in | Option | Option | Incentive Plan | Compensation | All Other | |||||||||||||||||||||||||||
Cash | Stock Awards (1) | Awards | Awards (2) | Compensation | Earnings | Compensation | Total | |||||||||||||||||||||||||
Name | ($) | ($) | ($) | (#) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | ||||||||||||||||||||||||
Phyllis O. Bonanno | 68,500 | 88,975 | — | 26,516 | — | — | — | 157,475 | ||||||||||||||||||||||||
David T. Brown | 68,500 | 96,592 | — | 5,208 | — | — | — | 165,092 | ||||||||||||||||||||||||
Jere A. Drummond | 82,000 | 99,666 | — | 28,128 | — | — | — | 181,666 | ||||||||||||||||||||||||
Paul E. Glaske(3) | 27,333 | 32,084 | — | 28,000 | — | — | — | 59,417 | ||||||||||||||||||||||||
Alexis P. Michas | 70,000 | 88,975 | — | 26,516 | — | — | — | 158,975 | ||||||||||||||||||||||||
Ernest J. Novak, Jr. | 108,000 | 99,666 | — | 12,128 | — | — | — | 207,666 | ||||||||||||||||||||||||
Richard O. Schaum | 74,000 | 88,975 | — | 2,516 | — | — | — | 162,975 | ||||||||||||||||||||||||
Thomas T. Stallkamp | 73,000 | 78,280 | — | 2,516 | — | — | — | 151,280 |
30
31
32
33
34
35
36
37
38
39
40
41
42
43
2008 | 2007 | |||||||||||||||
2009 | 2008 | |||||||||||||||
Audit Fees and Expenses | $ | 4,145,888 | $ | 4,268,900 | $ | 3,375,453 | $ | 4,145,888 | ||||||||
Audit-Related Fees | $ | 372,384 | $ | 253,700 | ||||||||||||
Tax Fees | $ | 236,652 | $ | 362,000 | ||||||||||||
Audit-Related Fees (1) | $ | 121,205 | $ | 372,384 | ||||||||||||
Tax Fees (2) | $ | 619,300 | $ | 236,652 | ||||||||||||
All Other Fees Totals | — | — | ____ | |||||||||||||
$ | 4,115,958 | $ | 4,754,924 | |||||||||||||
$ | 4,754,924 | $ | 4,884,600 | |||||||||||||
45
46
47
A-1
1. | Be directly responsible for the selection of, and compensation and oversight of the work of the independent auditor (including resolution of disagreements between management and the independent auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or related work. The independent auditor shall report directly to the Committee. |
2. | Preapprove all auditing services and permitted non-audit services (including the fees and terms thereof) to be performed for the Company by its independent auditor, subject to the de minimus exceptions for non-audit services described in Section 10A(i)(1)(B) of the Exchange Act that are approved by the Committee prior to the completion of the audit. Discuss and consider the independence of the independent auditors, including the auditors' written affirmation of independence. |
3. | Discuss and review with the independent auditors and financial management of the Company the proposed scope of the audit for the current year and the nature and thoroughness of the audit process; and at the conclusion thereof, receive and review audit reports including any comments or recommendations of the independent auditors. |
4. | Review with the independent auditor any audit problems or difficulties and management’s response. |
5. | Adopt hiring policies for employees or former employees of the independent auditor who participated in any capacity in the audit of the Company. |
6. | Review with the independent auditors, the Company's Director of Internal Audit and with the Company's financial and accounting managers, the adequacy and effectiveness of the Company's internal auditing, accounting and financial policies, procedures and controls; and elicit any recommendations for the improvement of existing internal control procedures or the establishment of controls or procedures. Particular emphasis should be given to the adequacy of the internal controls to expose payments, transactions or procedures which might be deemed illegal or otherwise improper. |
7. | Review the internal audit function of the Company including proposed audit plans for the coming year, the coordination of its programs with the independent auditors and the results of the internal programs. |
8. | Review and discuss recurring financial statements (including quarterly reports and disclosures made in management’s discussion and analysis) to be issued to the shareholders or the public with management and the independent auditor and recommend to the Board the inclusion of the Company's audited financial statements in the Company's Annual Report on Form 10-K. |
9. | Review and discuss: |
(a) | All critical accounting policies and practices to be used. |
(b) | All alternative treatments of financial information within generally accepted accounting principles that have been discussed with management, ramifications of the use of such alternative disclosures and treatments, and the treatment preferred by the independent auditor. |
(c) | Other material written communication between the independent auditor and management, such as any management letter or schedule of unadjusted differences. |
10. | Discuss with management the Company’s earnings press releases, including the use of “proforma” or “adjusted” non-GAAP information, as well as financial information and earnings guidance provided to analysts and rating agencies. Such discussion may be done generally (consisting of discussing the types of information to be disclosed and the types of presentations to be made). |
11. | Investigate any matter brought to its attention within the scope of its duties and retain outside counsel or other experts for this or any other purpose, if, in its judgment, such retention is appropriate. The Company shall provide appropriate funding, as determined by the Committee, for payment of compensation to the independent auditor for the purpose of rendering or issuing an audit report and to any advisors employed by the Committee and for other expenses necessary or appropriate in carrying out its duties. |
12. | Report Committee activities to the full Board and annually issue a summary report (including appropriate oversight conclusions) suitable for submission to shareholders. |
13. | Review disclosures made to the Committee by the Company’s CEO and CFO during their certification process for the Form 10-K and Form 10-Q about any significant deficiencies in the design or operation of internal controls or material weaknesses therein and any fraud involving management or other employees who have a role in the Company’s internal controls. |
14. | Ensure the rotation of the lead (or coordinating) audit partner having primary responsibility for the audit and the audit partner responsible for reviewing the audit as required by law. |
15. | Obtain and review a report from the independent auditor at least annually regarding (a) the independent auditor’s internal quality-control procedures, (b) any material issues raised by the most recent internal quality-control review, or peer review, of the firm, or any inquiry or investigation by governmental or professional authorities within the preceding five years respecting one or more independent audits carried out by the firm, (c) any steps taken to deal with any such issues, and (d) all relationships between the independent auditor and the Company. Evaluate the qualifications, performance and independence of the independent auditor, including considering whether the auditor’s quality controls are adequate and the provision of permitted non-audit services is compatible with maintaining the auditor’s independence, taking into account the opinions of management and internal auditors. The Committee shall present its conclusions with respect to the independent auditor to the Board. |
16. | Establish and monitor procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters, and the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters. |
17 | Discuss with the Company’s General Counsel legal matters that may have a material impact on the financial statements or the Company’s compliance policies. |
18. | Generally review and discuss with management the Company’s risk assessment and risk management policies. |
A-2
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A-11
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A-20
VOTE BY INTERNET Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time on April 3850 HAMLIN ROAD If you would like to reduce the costs incurred by our company in mailing proxy AUBURN HILLS, MI 48326 materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years. |
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DETACH AND RETURN THIS PORTION ONLY |
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. For | Withhold | For All | To withhold authority to vote for any All All Except individual nominee(s), mark “For All Except” and write the number(s) of the The Board of Directors recommends that you nominee(s) on the line below. | ||||||||||
following proposal(s): For Against Abstain 2 To ratify the appointment of | ||||||||||||
0 0 0 2010. NOTE: 3. To transact such other business as may properly come before the meeting or any adjournment or postponement thereof. | ||||||||||||
annual period ended December 31, 2009. R2.09.05.010 _1 Please sign exactly as your |
officer. Signature [PLEASE SIGN WITHIN BOX] | Date | Signature (Joint Owners) | Date |
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Annual Report on Form 10K, Notice & Proxy Statement is/are available at www.proxyvote.com . BORGWARNER INC. This Proxy is Solicited by the Board of Directors In Connection With the 2010 Annual Meeting of Stockholders 9:00 A.M. (local time) April 28, 2010 PLACE: BorgWarner Inc. 3850 Hamlin Road Auburn Hills, MI 48326 PROXY: JOHN J. GASPAROVIC and LAURENE H. HORISZNY, and each of them individually, are hereby appointed by the undersigned as attorneys and proxies with full power of substitution, to vote all the shares of Common Stock that the undersigned is entitled to vote at the 2010 Annual Meeting of Stockholders of BorgWarner Inc. or at any adjournment(s) or postponement(s) of the meeting. WITH RESPECT TO ANY MATTER THAT SHOULD PROPERLY COME BEFORE THE ANNUAL MEETING THAT IS NOT SPECIFIED HEREIN, THIS PROXY DELEGATES DISCRETIONARY AUTHORITY TO VOTE R2.09.05.010 AND, WILL BE VOTED IN THE DISCRETION OF THE PROXY HOLDER. _2 0000047696 Continued and to be signed on reverse side |