o | Preliminary Proxy Statement | |||||||||||||
o | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | |||||||||||||
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o | Definitive Additional Materials | |||||||||||||
o | Soliciting Material under Rule 14a-12 | |||||||||||||
INSPERITY, INC. | ||||||||||||||
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It is important that your shares be represented at the Annual Meeting of Stockholders regardless of whether you plan to attend. Therefore, please submit your proxy via the Internet or telephone or by completing and returning the enclosed proxy card or voting instruction card. If you are present at the meeting, and wish to do so, you may revoke the proxy and vote in person. |
Outstanding Equity Awards Table at | ||||||
Insperity | 1 | 2021 Proxy Statement |
Name of Beneficial Owner | Amount and Nature of Beneficial Ownership1 | Percent of Class | ||||||||||||||||||
Timothy T. Clifford | 13,028 | * | ||||||||||||||||||
Eli Jones | 722 | * | ||||||||||||||||||
Carol R. Kaufman | 32,146 | * | ||||||||||||||||||
John L. Lumelleau | 4,199 | * | ||||||||||||||||||
Ellen H. Masterson | 7,714 | 2 | * | |||||||||||||||||
Randall Mehl | 10,786 | * | ||||||||||||||||||
John M. Morphy | 6,940 | * | ||||||||||||||||||
Latha Ramchand | 4,199 | * | ||||||||||||||||||
Richard G. Rawson | 456,216 | 3 | 1.18 | % | ||||||||||||||||
Paul J. Sarvadi | 1,688,483 | 4 | 4.37 | % | ||||||||||||||||
A. Steve Arizpe | 195,268 | 5 | * | |||||||||||||||||
Daniel D. Herink | 41,577 | * | ||||||||||||||||||
Jay E. Mincks | 108,779 | * | ||||||||||||||||||
Douglas S. Sharp | 32,829 | * | ||||||||||||||||||
BlackRock, Inc. | 4,296,824 | 6 | 11.11 | % | ||||||||||||||||
FMR LLC | 2,355,666 | 7 | 6.09 | % | ||||||||||||||||
Mawer Investment Management Ltd. | 2,155,957 | 8 | 5.57 | % | ||||||||||||||||
The Vanguard Group | 3,336,596 | 9 | 8.63 | % | ||||||||||||||||
Executive Officers and Directors as a Group (15 Persons) | 2,667,497 | 6.90 | % |
Name of Beneficial Owner | Amount and Nature of Beneficial Ownership1 | Percent of Class | ||||||
Timothy T. Clifford | 6,006 | * | ||||||
Carol R. Kaufman | 27,624 | * | ||||||
Ellen H. Masterson | 3,092 | * | ||||||
Randall Mehl | 4,264 | 2 | * | |||||
John M. Morphy | 3,718 | * | ||||||
Richard G. Rawson | 522,518 | 3 | 1.27 | % | ||||
Paul J. Sarvadi | 1,893,062 | 4 | 4.59 | % | ||||
Austin P. Young | 38,954 | * | ||||||
A. Steve Arizpe | 160,441 | 5 | * | |||||
Daniel D. Herink | 30,873 | * | ||||||
Jay E. Mincks | 69,085 | * | ||||||
Douglas S. Sharp | 30,785 | * | ||||||
BlackRock Fund Advisors | 6,068,545 | 6 | 14.71 | % | ||||
The Vanguard Group, Inc. | 4,122,712 | 7 | 9.99 | % | ||||
Executive Officers and Directors as a Group (13 Persons) | 2,831,714 | 6.86 | % |
2021 Proxy Statement |
Name of Beneficial Owner | Unvested Restricted Stock | ||||||||||||
and Restricted Stock Units | |||||||||||||
Timothy T. Clifford | — | ||||||||||||
Eli Jones | — | ||||||||||||
Carol R. Kaufman | — | ||||||||||||
John Lumelleau | — | ||||||||||||
Ellen H. Masterson | |||||||||||||
Randall Mehl | — | ||||||||||||
John M. Morphy | — | ||||||||||||
Latha Ramchand | — | ||||||||||||
Richard G. Rawson | — | ||||||||||||
A. Steve Arizpe | 19,624 | ||||||||||||
Daniel D. Herink | 12,104 | ||||||||||||
Jay E. Mincks | 26,008 | ||||||||||||
Paul J. Sarvadi | 42,679 | ||||||||||||
Douglas S. Sharp | 15,344 |
2 Includes 100 shares owned by Conrad J. Masterson Jr. (spouse). 3Includes 184,950 shares owned by the RDKB Rawson LP, 179,316 shares owned by the R&D Rawson LP, 91,250 owned by the DMR Spousal Lifetime Trust and 700 shares owned by Dawn M. Rawson (spouse). Mr. Rawson shares voting and investment power over all such shares with his wife, except for 700 shares owned by his wife. 4 Includes 999,612 shares owned by Our Ship Limited Partnership, Ltd. and 33,520 shares owned by Paul J. Sarvadi and Vicki D. Sarvadi (spouse). Mr. Sarvadi shares voting and investment power over all such shares with his spouse. Also includes shares pledged to banks as collateral for loans. The Board determined the amount of shares pledged by Mr. Sarvadi was insignificant under our pledging policy. See “Corporate Governance — Prohibition on Hedging and Pledging of Our Common Stock” for a further discussion. 5 Includes 109,808 shares owned by S.C.A Legacy, Ltd. 6 Based on a Schedule 13G/A filed with the U.S. Securities and Exchange Commission (“SEC”) on January 27, 2021. BlackRock, Inc. reported sole voting power with respect to 4,204,784 shares and sole dispositive power with respect to 4,296,824 shares. The address of BlackRock, Inc. is 55 East 52nd Street, New York, New York 10055. 7 Based on a Schedule 13G/A filed with the SEC on February 8, 2021. FMR LLC reported sole voting power with respect to 674,002 shares and sole dispositive power with respect to 2,355,666 shares. The address of FMR LLC is 245 Summer Street, Boston, Massachusetts 02210. 8 Based on a Schedule 13G/A filed with the SEC on February 5, 2021. Mawer Investment Management Ltd. reported sole voting power with respect to 2,155,957 shares and sole dispositive power with respect to 2,155,957 shares. The address of Mawer Investment Management Ltd. is 600, 517 - 10th Avenue SW, Calgary, Alberta, Canada T2R 0A8. 9 Based on a Schedule 13G/A filed with the SEC on February 10, 2021. The Vanguard Group reported shared voting power with respect to 59,544 shares, sole dispositive power with respect to 3,248,397 shares and shared dispositive power with respect to 88,199 shares with Vanguard Fiduciary Trust Company. The address of the Vanguard Group is 100 Vanguard Blvd., Malvern, Pennsylvania 19355. |
Insperity | 3 | 2021 Proxy Statement |
Carol R. Kaufman |
Insperity | 4 | 2021 Proxy Statement |
John L. Lumelleau |
Paul J. Sarvadi |
Insperity | 5 | 2021 Proxy Statement |
The Board recommends that stockholders vote “For” all of the nominees listed above, and proxies executed and returned will be so voted unless contrary instructions are indicated thereon. |
Randall Mehl |
Insperity | 6 | 2021 Proxy Statement |
Richard G. Rawson |
Eli Jones |
7 | 2021 Proxy Statement |
Timothy T. Clifford |
Ellen H. Masterson |
Insperity | 8 | 2021 Proxy Statement |
Latha Ramchand |
Compensation Committee | Clifford (Chair) Jones Kaufman Mehl | |||||
Finance, Risk Management and Audit Committee | Lumelleau Morphy Ramchand | |||||
Nominating and Corporate Governance Committee | Kaufman (Chair) Clifford |
Insperity | 9 | 2021 Proxy Statement |
Insperity | 10 | 2021 Proxy Statement |
Insperity | 11 | 2021 Proxy Statement |
Insperity | 13 | 2021 Proxy Statement |
Insperity | 14 | 2021 Proxy Statement |
Insperity | 15 | 2021 Proxy Statement |
Name | Title | |||||
Paul J. Sarvadi | Chief Executive Officer and Chairman of the Board | |||||
Douglas S. Sharp | Chief Financial Officer, Senior Vice President of Finance and Treasurer | |||||
A. Steve Arizpe | President and Chief Operating Officer | |||||
Jay E. Mincks | 1 | Executive Vice President of Sales and Marketing | ||||
Daniel D. Herink | Senior Vice President of Legal, General Counsel and Secretary |
Insperity | 16 | 2021 Proxy Statement |
2021 Proxy Statement |
18 | 2021 Proxy Statement |
Insperity | 19 | 2021 Proxy Statement |
Compensation Objective | How we accomplish our objectives | ||||||||||||
Attract, retain and motivate high performing individuals to achieve our annual and long-term | • | Build a culture based upon the value of and respect for each individual, encouraging personal and professional growth, rewarding outstanding individual and corporate performance and achieving excellence through a high-energy, collegial work environment. | |||||||||||
• | Maintain competitive base salaries that compensate employees based upon job responsibilities, level of experience, individual performance, comparisons to the market, internal comparisons and other relevant factors. | ||||||||||||
• | Provide a competitive benefits package. | ||||||||||||
Motivate management to achieve short-term business goals and to enhance long-term stockholder value | • | Promote a performance-driven culture that encourages growth by recognizing and rewarding employees who meet and exceed our business objectives. | |||||||||||
• | Motivate and reward | ||||||||||||
• | Base a substantial portion of each NEO’s total compensation package on long-term incentive components and a variable annual compensation component (as outlined below). | ||||||||||||
• | Align the interests of our executive officers with the interests of our stockholders through the use of long-term equity and performance-based incentive compensation opportunities. | ||||||||||||
• | Align the interests of our executive officers with the interests of our stockholders through the use of stock ownership guidelines. | ||||||||||||
Discourage excessive risk-taking that could adversely impact stockholder value | • | Conduct an annual risk assessment of our executive compensation programs. | |||||||||||
• | Maintain an independent Compensation | ||||||||||||
• | Incorporate a variety of governance best practices and avoid governance pitfalls as outlined below. |
Insperity | 20 | 2021 Proxy Statement |
Compensation program emphasizing variable and at-risk compensation with at least 70% of each NEO’s target compensation tied to annual bonus and long-term incentives | ||||||
a | Long-term incentive (“LTI”) program prioritizing performance-based LTI with 65% of the CEO’s and on average, 47.5% of the other NEO’s LTI mix in performance-based LTI | |||||
a | Stock ownership guidelines requiring the CEO to hold shares equal to five times base salary, other executive officers to hold shares of three times or one and one-half times base salary, depending on the executive tier level established by the Compensation Committee, and non-employee directors to hold shares equal to four times the annual cash retainer | |||||
a | Clawback policy for incentive compensation paid to any employee, including NEOs and other executive officers | |||||
a | Minimum vesting period of three years for grants of restricted stock, restricted stock | |||||
a | Double trigger requirement for | |||||
a | Hedging policy prohibiting employees and directors from engaging in hedging transactions involving shares of our common stock | |||||
a | Pledging policy prohibiting employees and directors from engaging in pledging transactions involving shares of our common stock that would be considered significant by the Board | |||||
a | A lead independent director | |||||
a | Compensation Committee composed entirely of outside, independent directors | |||||
a | Independent compensation consultant hired by, and reporting directly to, the Compensation Committee |
r | Employment agreements with NEOs or other executive officers | |||||
r | Executive pension or other similar retirement or supplemental benefits | |||||
r | Single trigger change in control agreements for NEOs or other executive officers | |||||
r | Tax gross-ups in the event of a change in control | |||||
r | Medical coverage for retirees | |||||
r | Excessive benefits and perquisites |
Element of Compensation | 2017 Target | 2018 Target |
Base Salary | $920,000 | $1,000,000 |
Target Bonus ($) | $1,196,000 (130% of salary) | $1,350,000 (135% of salary) |
Long-Term Incentives (Grant Date Value) | $3,011,964 | $4,215,780 |
Target Total Direct Compensation (TDC) | $5,127,964 | $6,565,780 |
Target TDC Relation to Market Median | 90% of market median | 116% of market median |
Insperity | 21 | 2021 Proxy Statement |
Compensation Element | Form of Compensation | Purpose | |||||||||||
Fixed | Base Salary | Cash | Provides fixed level of compensation to attract and retain talent | ||||||||||
Variable and | Variable Cash Compensation (Insperity Annual Incentive Program) | Cash | and Performance Shares for 2020 | Rewards executive officers for achieving annual Company | |||||||||
Long-Term Equity Incentives | Restricted Stock Units and Performance Shares | Supports long-term focus on creating stockholder value, provides strong retention incentive with multi-year vesting and rewards achievement of long-term performance goals | |||||||||||
Benefits | Retirement Benefits | 401(k) Plan | Provides competitive retirement benefits as part of comprehensive pay package | ||||||||||
Health & Welfare Benefits | Medical, Dental, Life and Disability Benefits | Provides competitive health and welfare benefits as part of comprehensive pay package |
2019 | 2020 | 2020 | |||||||||
Base Salary | Base Salary | Increase | |||||||||
Chief Executive Officer and Chairman of the Board | $1,050,000 | $1,082,000 | 3.0% | ||||||||
Chief Financial Officer, Senior Vice President of Finance and Treasurer | $524,000 | $549,000 | 4.8% | ||||||||
President and Chief Operating Officer | $640,000 | $660,000 | 3.1% | ||||||||
Executive Vice President of Sales & Marketing | $571,000 | $588,000 | 3.0% | ||||||||
Senior Vice President of Legal, General Counsel and Secretary | $445,000 | $461,350 | 3.7% |
2017 | 2018 | 2018 | |||
Base Salary | Base Salary | Increase | |||
Chief Executive Officer and Chairman of the Board | $920,000 | $1,000,000 | 8.7% | ||
Chief Financial Officer, Senior Vice President of Finance and Treasurer | $460,000 | $488,000 | 6.1% | ||
Chief Operating Officer and Executive Vice President of Client Services | $535,000 | $565,000 | 5.6% | ||
Executive Vice President of Sales & Marketing | $511,000 | $541,000 | 5.9% | ||
Senior Vice President of Legal, General Counsel and Secretary | $393,000 | $421,000 | 7.1% |
Insperity | 22 | 2021 Proxy Statement |
2021 Proxy Statement |
Corporate Performance | Total of All Components | Annual Bonus (% of Salary) | One-Time LTI Component (% of Salary) | 2020 Target Bonus Opportunity | |||||||||||||||||||||||||||
Adjusted EBITDA | PWEE Growth | GPC per WSEE per Month | OEM | Departmental | Individual | Cash Component | Equity Component | ||||||||||||||||||||||||
Chief Executive Officer and Chairman of the Board | 28% | 28% | 16% | 8% | 0% | 20% | 100% | Chief Executive Officer and Chairman of the Board | 30% | 120% | n/a | 150% | |||||||||||||||||||
Chief Financial Officer, Senior Vice President of Finance and Treasurer | 17.5% | 17.5% | 10% | 5% | 30% | 20% | 100% | Chief Financial Officer, Senior Vice President of Finance and Treasurer | 45% | 135% | |||||||||||||||||||||
Chief Operating Officer and Executive Vice President of Client Services | 21% | 21% | 12% | 6% | 20% | 20% | 100% | ||||||||||||||||||||||||
President and Chief Operating Officer | President and Chief Operating Officer | 48% | 72% | 60% | 180% | ||||||||||||||||||||||||||
Executive Vice President of Sales & Marketing | 21% | 21% | 12% | 6% | 20% | 20% | 100% | Executive Vice President of Sales & Marketing | 40% | 60% | 50% | 150% | |||||||||||||||||||
Senior Vice President of Legal, General Counsel and Secretary | 17.5% | 17.5% | 10% | 5% | 30% | 20% | 100% | Senior Vice President of Legal, General Counsel and Secretary | 45% | 135% |
Annual Bonus Metric | Definition | Rationale | ||||||
Adjusted EBITDA | In setting our Adjusted EBITDA performance goal, the Compensation Committee chose to exclude the following items from EBITDA (earnings before interest, taxes, depreciation, and amortization), to the extent applicable: (1) non-cash impairment charges; (2) stock-based and incentive compensation; (3) one-time tax reform bonuses and changes in statutory tax rates; (4) professional advisory fees and outside costs related to stockholder matters; and (5) other extraordinary, unusual or infrequent items. | We have included Adjusted EBITDA as one of our corporate performance goals because we believe it is a key indicator of our overall productivity; effective management of pricing, direct costs and operating expenses; and ability to grow the business while favorably balancing profitability. | ||||||
Growth in Average WSEEs Paid | The PWEE Growth corporate component of the Cash Incentive Program bonuses was determined by calculating the year-over-year growth in the average number of WSEEs paid for calendar year | We included PWEE Growth as a component in order to focus our NEOs on growing our business. Increasing the average number of WSEEs paid is a key metric for measuring the success of our sales operations and client retention efforts and is a significant driver in our overall growth and performance. |
2021 Proxy Statement |
2021 Proxy Statement |
Target Bonus Percentage | July COVID-19 Bonus | Corporate Performance (% of Base Salary) | ||||||||||||||||||||||||||||||
Target Cash | Target Equity | |||||||||||||||||||||||||||||||
(% of Base Salary) | % of Base Salary) | Adjusted EBITDA 1 | PWEE Growth1 | Adjusted EBITDA 2 | PWEE Growth 2 | COVID-19 Response | ||||||||||||||||||||||||||
Chief Executive Officer and Chairman of the Board | 150% | 0% | 15% | 15% | 36% | 36% | 48% | |||||||||||||||||||||||||
Chief Financial Officer, Senior Vice President of Finance and Treasurer | 90% | 27% | 9% | 9% | 13.5% | 13.5% | 18% | |||||||||||||||||||||||||
President and Chief Operating Officer | 120% | 24% | 12% | 12% | 21.6% | 21.6% | 28.8% | |||||||||||||||||||||||||
Executive Vice President of Sales & Marketing | 100% | 20% | 10% | 10% | 18% | 18% | 24% | |||||||||||||||||||||||||
Senior Vice President of Legal, General Counsel and Secretary | 90% | 27% | 9% | 9% | 13.5% | 13.5% | 18% |
Insperity | 26 | 2021 Proxy Statement |
CASH | ||||||||||||||||||||
Metric | Performance Goals | Actual Results | Performance Modifier | |||||||||||||||||
Threshold (50% Payout) | Target (100% Payout) | Stretch (150% Payout) | Maximum (200% Payout) | |||||||||||||||||
Cash Awards Established Before Onset of COVID-19 | ||||||||||||||||||||
Adjusted EBITDA (in millions) | $274 | $290 | $308 | $317 | $322.6 | 200% | ||||||||||||||
PWEE Growth Percentage | 6% | 7% | 8% | 8.5.% | (0.6)% | 0% | ||||||||||||||
Cash Awards Established After Onset of COVID-19 | ||||||||||||||||||||
Adjusted EBITDA (in millions) | $237 | $256 | $264 | $273 | $322.6 | 0% 1 | ||||||||||||||
Avg. PWEE Number | 221,000 | 227,000 | 230,000 | 233,000 | 234,223 | 200% |
Metric | Performance Goals | Actual Results | Performance Modifier | |||
Threshold (50% Payout) | Target (100% Payout) | Stretch (150% Payout) | Maximum (200% Payout) | |||
Adjusted EBITDA1 (35%) (in millions) | $218 | $228 | $240 | $252 | $274 | 200% |
PWEE Growth (35%) | 11% | 12% | 13% | 14% | 14.5% | 200% |
GPC per WSEE per Month (20%) | $172 | $174 | $176 | $178 | $171 | 0% |
OEM1 (10%) (in millions) | $418 | $414 | $410 | $406 | $416 | 75% |
2021 Proxy Statement |
EQUITY | ||||||||||||||||||||
Metric | Performance Goals | Actual Results | Performance Modifier | |||||||||||||||||
Threshold (50% Payout) 1 | Target (100% Payout) | Stretch (200% Payout) | Maximum (300% Payout) | |||||||||||||||||
Equity Awards Established Before Onset of COVID-19 | ||||||||||||||||||||
Adjusted EBITDA (in millions) | $274 | $290 | $308 | $317 | $322.6 | 300% | ||||||||||||||
PWEE Growth Percentage | 6% | 7% | 8% | 8.5.% 2 | (0.6)% | 0% | ||||||||||||||
Equity Awards Established After Onset of COVID-19 | ||||||||||||||||||||
Adjusted EBITDA (in millions) | $237 | $256 | $264 | $273 | $322.6 | 0% 3 | ||||||||||||||
Avg. PWEE Number | 221,000 | 227,000 | 230,000 | 233,000 | 234,223 | 300% |
COVD-19 Performance Goal | |||||
Initiative | Objectives Being Evaluated | ||||
Customer Support | Business continuity task force, PPP loan and forgiveness assistance, and client contact / outreach | ||||
Technology / Systems | PPP loan report development, tax credit invoice processing, and legislative systems compliance | ||||
Legal and Regulatory | Government affairs activity, legislative analysis / guidance, and client services support | ||||
Sales / Marketing | Remote selling, client / prospect communications, and sales training | ||||
Corporate Staff | Remote work environment and return to workplace facilitation |
Insperity | 28 | 2021 Proxy Statement |
Metric | Performance Goal | Performance Modifier | |||||||||||||||
Threshold (50% Payout) | Target (100% Payout) | Stretch (200% Payout) | Maximum (300% Payout) | ||||||||||||||
COVID-19 Response | 20 | 30 | 37 | 45 | 300% |
Executive | Target Bonus ($) | Corporate Component Payout | Departmental Component Payout | Individual Component Payout | Bonus Payout (% of Target) | Actual Bonus Payout ($) |
Chief Executive Officer and Chairman of the Board | $1,350,000 | $1,568,492 | n/a | $372,185 | 144% | $1,940,677 |
Chief Financial Officer, Senior Vice President of Finance and Treasurer | $439,200 | $320,336 | $188,944 | $104,245 | 140% | $613,525 |
Chief Operating Officer and Executive Vice President of Client Services | $565,000 | $494,919 | $154,348 | $167,769 | 145% | $817,036 |
Executive Vice President of Sales & Marketing | $541,000 | $473,679 | $120,962 | $133,808 | 135% | $728,449 |
Senior Vice President of Legal, General Counsel and Secretary | $378,900 | $275,865 | $168,324 | $104,735 | 145% | $548,924 |
Insperity | 29 | 2021 Proxy Statement |
Executive | July COVID-19 Cash Bonus | Total Cash Awards1 | Total Equity Awards | ||||||||
Chief Executive Officer and Chairman of the Board | n/a | $670,477 | 73,677 shares | ||||||||
Chief Financial Officer, Senior Vice President of Finance and Treasurer | $148,230 | $356,144 | 19,533 shares | ||||||||
President and Chief Operating Officer | $158,400 | $490,708 | 35,802 shares | ||||||||
Executive Vice President of Sales & Marketing | $117,600 | $364,408 | 26,580 shares | ||||||||
Senior Vice President of Legal, General Counsel and Secretary | $124,470 | $299,662 | 16,398 shares |
2021 Proxy Statement |
Executive | Total LTI Grant Date Value | Restricted Stock Units | Performance Shares under LTIP | |||||||||||||||||||||||
Weighting | Shares Granted | Grant Date Value | Weighting | Shares Granted | Grant Date Value | |||||||||||||||||||||
Chief Executive Officer and Chairman of the Board | $5,134,618 | 35% | 26,015 | $1,750,029 | 65% | 48,315 | $3,384,589 | |||||||||||||||||||
Chief Financial Officer, Senior Vice President of Finance and Treasurer | $1,120,680 | 55% | 8,995 | $605,094 | 45% | 7,360 | $515,586 | |||||||||||||||||||
President and Chief Operating Officer | $1,632,770 | 50% | 11,890 | $799,840 | 50% | 11,890 | $832,930 | |||||||||||||||||||
Executive Vice President of Sales & Marketing | $1,479,652 | 50% | 10,775 | $724,834 | 50% | 10,775 | $754,818 | |||||||||||||||||||
Senior Vice President of Legal, General Counsel and Secretary | $916,823 | 55% | 7,360 | $495,107 | 45% | 6,020 | $421,716 |
Executive | Total LTI Grant Date Value | Restricted Stock | Performance Shares | |||||
Weighting | Shares Granted | Grant Date Value1 | Weighting | Shares Granted | Grant Date Value2 | |||
Chief Executive Officer and Chairman of the Board | $4,215,780 | 35% | 21,455 | $1,399,939 | 65% | 39,845 | $2,815,841 | |
Chief Financial Officer, Senior Vice President of Finance and Treasurer | $829,861 | 55% | 6,745 | $440,111 | 45% | 5,515 | $389,750 | |
Chief Operating Officer and Executive Vice President of Client Services | $1,458,433 | 50% | 10,730 | $700,133 | 50% | 10,730 | $758,300 | |
Executive Vice President of Sales & Marketing | $1,458,433 | 50% | 10,730 | $700,133 | 50% | 10,730 | $758,300 | |
Senior Vice President of Legal, General Counsel and Secretary | $829,861 | 55% | 6,745 | $440,111 | 45% | 5,515 | $389,750 |
Insperity | 31 | 2021 Proxy Statement |
Performance Share Metric | Definition | Rationale | ||||||
Adjusted EBITDA (75% weighting) | EBITDA is adjusted for non-cash impairment charges, stock-based compensation expense, professional advisory fees for stockholder matters, litigation settlements and the associated legal fees, The Adjusted EBITDA portion of the | The Compensation Committee elected to use | ||||||
Relative TSR (RTSR) (25% weighting) | RTSR will be measured over the entire | The Compensation Committee elected to use RTSR as a performance metric to further align the long-term financial interests of the executive officers and the Company’s stockholders. |
Insperity | 32 | 2021 Proxy Statement |
Performance Level | 2018 Adjusted EBITDA Performance Objective (in millions) | Payout Percentage | Performance Level | 2020 Adjusted EBITDA Performance Objective (in millions) | Payout Percentage | |||||||
Below Threshold | Less Than $197 | 0% | Below Threshold | Less Than $250 | 0% | |||||||
Threshold | $197 | 50% | Threshold | $250 | 50% | |||||||
Target | $202 | 100% | Target | $261 | 100% | |||||||
Maximum | $210 | 200% | Maximum | $287 | 200% |
Performance Level | 2018 Adjusted EBITDA Performance Objective (in millions) | Payout Percentage | Performance Level | 2020 Adjusted EBITDA Performance Objective (in millions) | Payout Percentage | |||||||
Below Threshold | Less Than $186 | 0% | Below Threshold | Less Than $308 | 0% | |||||||
Threshold | $186 | 50% | Threshold | $308 | 50% | |||||||
Target | $192 | 100% | Target | $318 | 100% | |||||||
Maximum | $201 | 200% | Maximum | $332 | 200% |
Insperity | 33 | 2021 Proxy Statement |
Performance Period (in millions) | Adjusted EBITDA Goals | Actual Results | Vesting Percentage | ||
Threshold | Target | Maximum | |||
2016 | $134 | $144 | $166 | $141.2 | 85.9% |
2017 | $149 | $166 | $190 | $177.7 | 149.4% |
2018 | $171 | $190 | $219 | $230.3 | 200.0% |
Performance Period (in millions) | Adjusted EBITDA Goals | Actual Results | Vesting Percentage | ||||||||||||||
Threshold | Target | Maximum | |||||||||||||||
2018 | $197 | $202 | $210 | $230.3 | 200% | ||||||||||||
2019 | $230 | $236 | $245 | $250.0 | 200% | ||||||||||||
2020 | $276 | $283 | $293 | $288.6 | 156% |
Relative Total Shareholder Return (RTSR) | ||||||||||||||||||||||||||
2016-2018 Performance Period | 25th Percentile or Better | 50th Percentile or Better | 75th Percentile or Better | 90th Percentile or Better | Actual Percentile Achieved | Vesting Percentage | ||||||||||||||||||||
2018-2020 Performance Period | 2018-2020 Performance Period | 25th Percentile or Better | 50th Percentile or Better | 75th Percentile or Better | 90th Percentile or Better | Actual Percentile Achieved | Vesting Percentage | |||||||||||||||||||
Payout as a Percentage of Target | 50% | 100% | 150% | 200% | 100th Percentile | 200% | Payout as a Percentage of Target | 50% | 100% | 150% | 200% | 65th Percentile | 130% |
Executive | 2016 Target # of PSUs | PSU Payout Multiplier | 2016 Earned Amounts | Executive | 2018 Target # of PSUs | PSU Payout Multiplier | 2018 Earned Amounts | |||||||
Chief Executive Officer and Chairman of the Board | 72,690 | 167.1% | 121,437 | Chief Executive Officer and Chairman of the Board | 39,845 | 171.5 | % | 68,335 | ||||||
Chief Financial Officer, Senior Vice President of Finance and Treasurer | 13,160 | 167.1% | 21,986 | Chief Financial Officer, Senior Vice President of Finance and Treasurer | 5,515 | 171.5 | % | 9,459 | ||||||
Chief Operating Officer and Executive Vice President of Client Services | 23,760 | 167.1% | 39,694 | |||||||||||
President and Chief Operating Officer | President and Chief Operating Officer | 10,730 | 171.5 | % | 18,402 | |||||||||
Executive Vice President of Sales & Marketing | 23,760 | 167.1% | 39,694 | Executive Vice President of Sales & Marketing | 10,730 | 171.5 | % | 18,402 | ||||||
Senior Vice President of Legal, General Counsel and Secretary | 13,160 | 167.1% | 21,986 | Senior Vice President of Legal, General Counsel and Secretary | 5,515 | 171.5 | % | 9,459 |
Insperity | 34 | 2021 Proxy Statement |
Insperity | 35 | 2021 Proxy Statement |
Company Name | Company Ticker | |||||||||||
Providers of PEO Services | Automatic Data Processing, Inc. | ADP | ||||||||||
Paychex, Inc. | PAYX | |||||||||||
TriNet Group, Inc. | TNET | |||||||||||
IT Services and Software | ||||||||||||
Gartner, Inc. | IT | |||||||||||
Genpact Limited | G | |||||||||||
Total System Services, Inc. | TSS | |||||||||||
Professional Services | ASGN Incorporated | ASGN | ||||||||||
FTI Consulting, Inc. | FCN | |||||||||||
ICF International, Inc. | ||||||||||||
Kelly Services, Inc. | KELYA | |||||||||||
Kforce, Inc. | KFRC | |||||||||||
Korn/Ferry International | KFY | |||||||||||
Robert Half International, Inc. | RHI | |||||||||||
TrueBlue, Inc. | TBI |
Insperity | 36 | 2021 Proxy Statement |
Insperity | 37 | 2021 Proxy Statement |
2021 Proxy Statement |
Name and Principal Position | Year | Salary ($) | Stock Awards ($)1 | Non-Equity Incentive Plan Compensation ($)2 | All Other Compensation ($)3 | Total ($) | Name and Principal Position | Year | Salary ($)1 | Bonus ($) | Stock Awards ($)2, 5 | Non-Equity Incentive Plan Compensation ($)3, 5 | All Other Compensation ($)4 | Total ($) | ||||||||||||||||||||||||
Paul J. Sarvadi, Chief Executive Officer and Chairman of the Board | 2018 | 1,000,000 | 4,215,780 | 1,940,677 | 27,467 | 7,183,924 | Paul J. Sarvadi, Chief Executive Officer and Chairman of the Board | 2020 | 1,117,461 | — | 7,731,542 | 670,477 | 41,858 | 9,561,338 | ||||||||||||||||||||||||
2017 | 920,000 | 3,011,964 | 1,495,620 | 51,533 | 5,479,117 | 2019 | 1,050,000 | — | 5,346,366 | 926,047 | 40,766 | 7,363,179 | ||||||||||||||||||||||||||
2016 | 884,000 | 2,953,612 | 1,369,078 | 33,231 | 5,239,921 | 2018 | 1,000,000 | — | 4,215,780 | 1,940,677 | 27,467 | 7,183,924 | ||||||||||||||||||||||||||
Douglas S. Sharp, Chief Financial Officer, Senior Vice President of Finance and Treasurer | 2018 | 488,000 | 829,861 | 613,525 | 58,165 | 1,989,551 | Douglas S. Sharp, Chief Financial Officer, Senior Vice President of Finance and Treasurer | 2020 | 565,308 | 148,230 | 1,862,091 | 356,144 | 67,180 | 2,998,953 | ||||||||||||||||||||||||
2017 | 460,000 | 769,657 | 540,193 | 64,140 | 1,833,990 | 2019 | 524,000 | — | 1,152,516 | 433,200 | 65,736 | 2,175,452 | ||||||||||||||||||||||||||
2016 | 432,480 | 728,985 | 411,422 | 56,250 | 1,629,137 | 2018 | 488,000 | — | 829,861 | 613,525 | 58,165 | 1,989,551 | ||||||||||||||||||||||||||
A. Steve Arizpe, Chief Operating Officer and Executive Vice President of Client Services | 2018 | 565,000 | 1,458,433 | 817,036 | 63,031 | 2,903,500 | ||||||||||||||||||||||||||||||||
2017 | 535,000 | 1,134,097 | 674,262 | 68,096 | 2,411,455 | |||||||||||||||||||||||||||||||||
2016 | 513,760 | 1,111,588 | 567,249 | 62,239 | 2,254,836 | |||||||||||||||||||||||||||||||||
A. Steve Arizpe, President and Chief Operating Officer | A. Steve Arizpe, President and Chief Operating Officer | 2020 | 681,539 | 158,400 | 2,979,508 | 490,708 | 75,511 | 4,385,666 | ||||||||||||||||||||||||||||||
2019 | 640,000 | — | 1,685,028 | 453,575 | 70,530 | 2,849,133 | ||||||||||||||||||||||||||||||||
2018 | 565,000 | — | 1,458,433 | 817,036 | 63,031 | 2,903,500 | ||||||||||||||||||||||||||||||||
Jay E. Mincks, Executive Vice President of Sales & Marketing | 2018 | 541,000 | 1,458,433 | 728,449 | 66,709 | 2,794,591 | Jay E. Mincks, Executive Vice President of Sales & Marketing | 2020 | 607,346 | 117,600 | 2,479,488 | 364,408 | 64,948 | 3,633,790 | ||||||||||||||||||||||||
2017 | 511,000 | 1,134,097 | 657,242 | 62,510 | 2,364,849 | 2019 | 571,000 | — | 1,526,754 | 406,429 | 66,072 | 2,570,255 | ||||||||||||||||||||||||||
2016 | 490,880 | 1,111,588 | 549,771 | 65,808 | 2,218,047 | 2018 | 541,000 | — | 1,458,433 | 728,449 | 66,709 | 2,794,591 | ||||||||||||||||||||||||||
Daniel D. Herink, Senior Vice President of Legal, General Counsel and Secretary | 2018 | 421,000 | 829,861 | 548,924 | 59,441 | 1,859,226 | Daniel D. Herink, Senior Vice President of Legal, General Counsel and Secretary | 2020 | 475,654 | 124,470 | 1,539,226 | 299,662 | 65,325 | 2,504,337 | ||||||||||||||||||||||||
Daniel D. Herink, Senior Vice President of Legal, General Counsel and Secretary | 2019 | 445,000 | — | 942,751 | 372,912 | 63,417 | 1,824,080 | |||||||||||||||||||||||||||||||
2018 | 421,000 | — | 829,861 | 548,924 | 59,441 | 1,859,226 |
2The amounts in this column represent the aggregate grant date fair value of awards granted in the year indicated and includes time-vested restricted stock and restricted stock units, the 2018 LTIP Awards, the 2019 LTIP Awards, the 2020 LTIP Awards, and the 2020 performance restricted stock unit grants awards. The grant value of the 2018 LTIP Awards, the 2019 LTIP Awards and the 2020 LTIP Awards are shown at target. Actual awards may range from 0% to 200% of the target number of phantom shares if the maximum performance level is achieved. The grant date fair value of the 2018 LTIP Awards assuming achievement of the maximum level of performance are: Mr. Sarvadi - $5,631,681; Mr. Sharp - $779,501; Mr. Arizpe - $1,516,600; Mr. Mincks - $1,516,600; and Mr. Herink - $779,501. The grant date fair value of the 2019 LTIP Awards assuming achievement of the maximum level of performance are: Mr. Sarvadi - $7,192,528; Mr. Sharp - $1,095,366; Mr. Arizpe - $1,770,216; Mr. Mincks - $1,603,928; and Mr. Herink - $895,546. The grant date fair value of the 2020 LTIP Awards assuming achievement of the maximum level of performance are: Mr. Sarvadi - $6,769,174; Mr. Sharp - $1,031,172; Mr. Arizpe - $1,665,848; Mr. Mincks - $1,509,632; and Mr. Herink - $843,432. For additional information, refer to Note 9, “Incentive Plans,” in the Notes to Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 11, 2021. See the Grants of Plan-Based Awards Table for information on awards made in 2020. The grant date fair value of the February 2020 performance restricted stock unit awards assuming achievement of the maximum level of performance are: Mr. Sarvadi - $3,895,337; Mr. Sharp - $1,482,900; Mr. Arizpe - $2,614,247; Mr. Mincks - $1,941,009; and Mr. Herink - $1,244,764. The grant date fair value of the July 2020 performance restricted stock unit awards assuming achievement of the maximum level of performance are: Mr. Sarvadi - $3,895,434; Mr. Sharp - $741,334; Mr. Arizpe - $1,425,966; Mr. Mincks - $1,058,500; and Mr. Herink - $622,443. These amounts do not necessarily correspond to the actual value that will be realized by the NEO. |
Insperity | 39 | 2021 Proxy Statement |
Estimated Possible Payouts Under Non-Equity Incentive Plan Awards1 | Estimated Possible Payouts Under Equity Incentive Plan Awards2 | All Other Stock Awards: Number of Shares of Stock or Units (#)3 | Grant Date Fair Value of Stock and Option Awards ($)4 | |||||||||||||||||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | |||||||||||||||||||||||||
Paul J. Sarvadi | 2/28/2020 | 167,620 | 335,239 | 670,477 | 9,651 | 19,301 | 57,904 | — | 1,298,446 | |||||||||||||||||||||||
2/28/2020 | — | — | — | — | — | — | 26,015 | 1,750,029 | ||||||||||||||||||||||||
2/28/2020 | — | — | — | 24,158 | 48,315 | 96,630 | — | 3,384,589 | ||||||||||||||||||||||||
7/9/2020 | 167,620 | 335,239 | 670,477 | 364,408 | 21,296 | 63,887 | — | 1,298,478 | ||||||||||||||||||||||||
Douglas S. Sharp | 2/28/2020 | 89,036 | 178,072 | 356,144 | 1,836 | 7,345 | 22,035 | — | 494,300 | |||||||||||||||||||||||
2/28/2020 | — | — | — | — | — | — | 8,995 | 605,094 | ||||||||||||||||||||||||
2/28/2020 | — | — | — | 3,680 | 7,360 | 14,720 | — | 515,586 | ||||||||||||||||||||||||
7/9/2020 | 126,094 | 252,187 | 504,374 | 2,026 | 4,052 | 12,516 | — | 247,111 | ||||||||||||||||||||||||
A. Steve Arizpe | 2/28/2020 | 122,677 | 245,354 | 490,708 | 3,532 | 12,951 | 38,852 | — | 871,416 | |||||||||||||||||||||||
2/28/2020 | — | — | — | — | — | — | 11,890 | 799,840 | ||||||||||||||||||||||||
2/28/2020 | — | — | — | 5,945 | 11,890 | 23,780 | — | 832,930 | ||||||||||||||||||||||||
7/9/2020 | 162,277 | 324,554 | 649,108 | 3,897 | 7,794 | 23,382 | — | 475,322 | ||||||||||||||||||||||||
Jay E. Mincks | 2/28/2020 | 91,102 | 182,204 | 364,408 | 2,622 | 9,615 | 28,845 | — | 647,003 | |||||||||||||||||||||||
2/28/2020 | — | — | — | — | — | — | 10,775 | 724,834 | ||||||||||||||||||||||||
2/28/2020 | — | — | — | 5,388 | 10,775 | 21,550 | — | 754,818 | ||||||||||||||||||||||||
7/9/2020 | 120,502 | 241,004 | 482,008 | 2,893 | 5,786 | 17,359 | — | 352,833 | ||||||||||||||||||||||||
Daniel D. Herink | 2/28/2020 | 74,916 | 149,831 | 299,662 | 1,543 | 6,172 | 18,517 | — | 414,922 | |||||||||||||||||||||||
2/28/2020 | — | — | — | — | — | — | 7,360 | 495,107 | ||||||||||||||||||||||||
2/28/2020 | — | — | — | 3,010 | 6,020 | 12,040 | — | 421,716 | ||||||||||||||||||||||||
7/9/2020 | 106,033 | 212,066 | 424,132 | 1,703 | 3,405 | 10,215 | — | 207,481 |
Estimated Possible Payouts Under Non-Equity Incentive Plan Awards1 | Estimated Possible Payouts Under Equity Incentive Plan Awards2 | All Other Stock Awards: Number of Shares of Stock or Units (#)3 | Grant Date Fair Value of Stock and Option Awards ($)4 | |||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | |||||||||||
Paul J. Sarvadi | N/A | 675,000 | 1,350,000 | 2,565,000 | — | — | — | — | — | |||||||||
2/21/2018 | — | — | — | — | — | — | 21,455 | 1,399,939 | ||||||||||
2/21/2018 | — | — | — | 19,923 | 39,845 | 79,690 | — | 2,815,841 | ||||||||||
Douglas S. Sharp | N/A | 219,600 | 439,200 | 768,600 | — | — | — | — | — | |||||||||
2/21/2018 | — | — | — | — | — | — | 6,745 | 440,111 | ||||||||||
2/21/2018 | — | — | — | 2,758 | 5,515 | 11,030 | — | 389,750 | ||||||||||
A. Steve Arizpe | N/A | 282,500 | 565,000 | 1,017,000 | — | — | — | — | — | |||||||||
2/21/2018 | — | — | — | — | — | — | 10,730 | 700,133 | ||||||||||
2/21/2018 | 5,365 | 10,730 | 21,460 | — | 758,300 | |||||||||||||
Jay E. Mincks | N/A | 270,500 | 541,000 | 973,800 | — | — | — | — | — | |||||||||
2/21/2018 | — | — | — | — | — | — | 10,730 | 700,133 | ||||||||||
2/21/2018 | — | — | — | 5,365 | 10,730 | 21,460 | — | 758,300 | ||||||||||
Daniel D. Herink | N/A | 189,450 | 378,900 | 663,075 | — | — | — | — | — | |||||||||
2/21/2018 | — | — | — | — | — | — | 6,745 | 440,111 | ||||||||||
2/21/2018 | — | — | — | 2,758 | 5,515 | 11,030 | — | 389,750 |
40 | |||
Option Awards | Stock Awards | Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options Exercisable (#) | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($)1 | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)2 | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)1 | Name | Number of Securities Underlying Unexercised Options Exercisable (#) | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($)1 | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)2 | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)1 | ||||||||||||||||||||||||||
Paul J. Sarvadi | — | 47,107 | 3 | 4,397,910 | 239,131 | 22,325,270 | Paul J. Sarvadi | — | — | 42,407 | 3 | 3,452,778 | 220,939 | 17,988,853 | |||||||||||||||||||||||||||
Douglas S. Sharp | — | 17,421 | 4 | 1,626,425 | 41,181 | 3,844,658 | Douglas S. Sharp | — | — | 14,438 | 4 | 1,175,542 | 41,123 | 3,348,235 | |||||||||||||||||||||||||||
A. Steve Arizpe | — | 23,498 | 5 | 2,193,773 | 74,997 | 7,001,720 | A. Steve Arizpe | — | — | 19,691 | 5 | 1,603,241 | 73,996 | 6,024,754 | |||||||||||||||||||||||||||
Jay E. Mincks | — | 23,498 | 5 | 2,193,773 | 74,997 | 7,001,720 | Jay E. Mincks | — | — | 18,179 | 6 | 1,480,134 | 62,905 | 5,121,725 | |||||||||||||||||||||||||||
Daniel D. Herink | — | 17,421 | 4 | 1,626,425 | 41,181 | 3,844,658 | Daniel D. Herink | — | — | 12,223 | 7 | 995,197 | 35,863 | 2,919,965 |
2021 Proxy Statement |
Option Awards | Stock Awards | Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#)1 | Value Realized on Vesting ($)2 | Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($)1 | ||||||||||||||||||||||||||
Paul J. Sarvadi | — | — | 114,372 | 7,468,492 | Paul J. Sarvadi | — | — | 107,311 | 7,782,290 | ||||||||||||||||||||||||||
Douglas S. Sharp | — | — | 19,974 | 1,304,302 | Douglas S. Sharp | — | — | 22,946 | 1,661,653 | ||||||||||||||||||||||||||
A. Steve Arizpe | — | — | 42,773 | 2,793,077 | A. Steve Arizpe | — | — | 37,791 | 2,738,601 | ||||||||||||||||||||||||||
Jay E. Mincks | — | — | 42,773 | 2,793,077 | Jay E. Mincks | — | — | 37,593 | 2,725,377 | ||||||||||||||||||||||||||
Daniel D. Herink | — | — | 19,974 | 1,304,302 | Daniel D. Herink | — | — | 22,656 | 1,642,284 |
1Represents the value of the shares on the vesting date based on the last reported closing price of our common stock on the NYSE immediately preceding the vesting date. |
Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance | Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance | ||||||||||||||||||||||||||||
Plan Category | (# in thousands) | ($) | (# in thousands) | Plan Category | (# in thousands) | ($) | (# in thousands) | ||||||||||||||||||||||||||
Equity compensation plans approved by security holders1 | 822 | 2 | $15.30 | 3 | 5,098 | 4 | Equity compensation plans approved by security holders1 | 715 | 2 | $15.30 | 3 | 3,749 | 4 | ||||||||||||||||||||
Equity compensation plan not approved by security holders | — | — | — | Equity compensation plan not approved by security holders | — | — | — | ||||||||||||||||||||||||||
Total | 822 | $15.30 | 5,098 | Total | 715 | $15.30 | 3,749 |
2Includes 15,626 shares subject to issuance under outstanding options plus 699,505 shares subject to issuance under the LTIP and short-term incentive program as of December 31, 2020 assuming maximum results for performance periods not yet complete and actual results for completed performance periods and associated dividend equivalents. 3Weighted average exercise price does not take into account shares to be issued under the LTIP. 4This includes 2,332,070 shares available under the ESPP and 1,417,062 shares available under the 2012 Incentive Plan. As of April 5, 2021, 2,311,940 shares and 1,490,164 shares (assuming maximum results for performance periods not yet complete and actual results for performance periods completed) were available for issuance under the ESPP and the 2012 Incentive Plan, respectively. The securities remaining available for issuance under the 2012 Incentive Plan may be issued in the form of stock options, performance awards, stock awards (including restricted stock), phantom stock awards, stock appreciation rights, and other stock-based awards. |
Insperity | 42 | 2021 Proxy Statement |
Retirement ($) | Termination Not For Cause ($) | Death or Disability ($) | Termination Not For Cause or For Good Reason After Change in Control ($) | |||||||||||
Paul Sarvadi | ||||||||||||||
Cash Severance (1) | — | 2,164,000 | — | 6,762,500 | ||||||||||
Time Vested Restricted Stock or RSUs (2) | 2,159,765 | — | 3,494,402 | 3,494,402 | ||||||||||
Short-Term Incentive Program (3) | 6,751,361 | 1,623,000 | — | — | ||||||||||
Long-Term Incentive Program (4) | 2,339,815 | — | 7,996,591 | 11,907,663 | ||||||||||
Continued Health Care Benefits (5) | — | 33,036 | — | 41,295 | ||||||||||
Total | 11,250,942 | 3,820,036 | 11,490,993 | 22,205,860 | ||||||||||
Doug Sharp | ||||||||||||||
Cash Severance (1) | — | 823,500 | — | 2,580,300 | ||||||||||
Time Vested Restricted Stock or RSUs (2) | — | — | 1,189,934 | 1,189,934 | ||||||||||
Short-Term Incentive Program (3) | — | 741,150 | — | — | ||||||||||
Long-Term Incentive Program (4) | — | — | 1,137,290 | 1,733,059 | ||||||||||
Continued Health Care Benefits (5) | — | 22,386 | — | 29,849 | ||||||||||
Total | — | 1,587,036 | 2,327,224 | 5,533,142 | ||||||||||
Steve Arizpe | ||||||||||||||
Cash Severance (1) | — | 990,000 | — | 3,696,000 | ||||||||||
Time Vested Restricted Stock or RSUs (2) | 987,108 | — | 1,622,265 | 1,622,265 | ||||||||||
Short-Term Incentive Program (3) | 3,449,893 | 1,188,000 | — | — | ||||||||||
Long-Term Incentive Program (4) | 575,813 | — | 2,102,736 | 3,065,273 | ||||||||||
Continued Health Care Benefits (5) | — | 22,057 | — | 29,410 | ||||||||||
Total | 5,012,814 | 2,200,057 | 3,725,001 | 8,412,948 | ||||||||||
Jay Mincks | ||||||||||||||
Cash Severance (1) | — | 882,000 | — | 2,940,000 | ||||||||||
Time Vested Restricted Stock or RSUs (2) | 894,541 | — | 1,497,374 | 1,497,374 | ||||||||||
Short-Term Incentive Program (3) | 2,561,357 | 882,000 | — | — | ||||||||||
Long-Term Incentive Program (4) | 521,815 | — | 2,052,211 | 2,924,446 | ||||||||||
Continued Health Care Benefits (5) | — | 24,777 | — | 33,036 | ||||||||||
Total | 3,977,713 | 1,788,777 | 3,549,585 | 7,394,856 | ||||||||||
Dan Herink | ||||||||||||||
Cash Severance (1) | — | 692,025 | — | 2,168,345 | ||||||||||
Time Vested Restricted Stock or RSUs (2) | — | — | 1,006,973 | 1,006,973 | ||||||||||
Short-Term Incentive Program (3) | — | 622,823 | — | — | ||||||||||
Long-Term Incentive Program (4) | — | — | 1,076,638 | 1,563,934 | ||||||||||
Continued Health Care Benefits (5) | — | 34,726 | — | 46,301 | ||||||||||
Total | — | 1,349,573 | 2,083,611 | 4,785,553 |
Insperity | 43 | 2021 Proxy Statement |
Insperity | 44 | 2021 Proxy Statement |
Insperity | 45 | 2021 Proxy Statement |
Board | Compensation Committee | Finance, Risk Management and Audit Committee | Nominating and Corporate Governance Committee | Lead Independent Director | |||||||||||||||
Annual Retainers | $61,000 | $ | 10,000 | $ | 15,000 | $ | 5,000 | $ | 20,000 | ||||||||||
Annual Committee Chair Fees | N/A | $ | 15,000 | $ | 25,000 | $10,000 | N/A |
Board | Compensation Committee | Finance, Risk Management and Audit Committee | Nominating and Corporate Governance Committee | Lead Independent Director | |||||||||||||||||||||||||||||||
Annual Retainers | $ | 70,000 | $ | 10,000 | $ | 15,000 | $ | 5,000 | $ | 35,000 | |||||||||||||||||||||||||
Annual Committee Chair Fees | N/A | $ | 15,000 | $ | 25,000 | $ | 10,000 | N/A |
Insperity | 46 | 2021 Proxy Statement |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($)1 | Option Awards ($) | All Other Compensation ($) | Total ($) | |||||||||||||||
Timothy T. Clifford | 120,417 | 155,135 | — | — | 275,552 | |||||||||||||||
Eli Jones2 | — | 62,352 | — | — | 62,352 | |||||||||||||||
Carol R. Kaufman | 95,000 | 155,135 | — | — | 250,135 | |||||||||||||||
John L. Lumelleau | 67,083 | 155,135 | — | — | 222,218 | |||||||||||||||
Ellen H. Masterson | 99,583 | 155,135 | — | — | 254,718 | |||||||||||||||
Randall Mehl | 80,000 | 155,135 | — | — | 235,135 | |||||||||||||||
John M. Morphy | 85,000 | 155,135 | — | — | 240,135 | |||||||||||||||
Latha Ramchand | 67,083 | 155,135 | — | — | 222,218 | |||||||||||||||
Richard G. Rawson | 70,000 | 155,135 | — | — | 225,135 | |||||||||||||||
Austin P. Young3 | 85,000 | — | — | — | 85,000 |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($)1 | Option Awards ($) | All Other Compensation ($) | Total ($) | ||
Timothy T. Clifford | 91,000 | 106,923 | — | — | 197,923 | ||
Carol R. Kaufman | 79,333 | 106,923 | — | — | 186,256 | ||
Ellen H. Masterson | 76,000 | 106,923 | — | — | 182,923 | ||
Randall Mehl | 61,666 | 106,923 | — | — | 168,589 | ||
John M. Morphy | 76,000 | 106,923 | — | — | 182,923 | ||
Richard G. Rawson2 | 20,333 | 106,923 | — | — | 127,256 | ||
Norman R. Sorensen3 | 53,168 | — | — | — | 53,168 | ||
Austin P. Young | 132,668 | 106,923 | — | — | 239,591 |
2Dr. Jones was appointed to the Board in December 2020. 3Mr. Young retired from the Board when his term expired at the 2020 Annual Meeting of Stockholders. |
Insperity | 47 | 2021 Proxy Statement |
Related Party | Net Service Fees | / | (Payroll Costs) | ||||
Mr. Rawson (four client companies) | $ | 716,582 | $ | (2,503,380 | ) | ||
Mr. Sarvadi (four client companies) | $ | 475,069 | $ | (941,982 | ) | ||
Mr. Mincks (one client company) | $ | 43,149 | $ | (170,153 | ) |
Insperity | 48 | 2021 Proxy Statement |
Related Party | Net Service Fees | / | (Payroll Costs) | ||||||||
Ms. Masterson (one client company) | $ | 227,368 | $ | (999,072) | |||||||
Mr. Mincks (one client company) | $ | 72,452 | $ | (389,146) | |||||||
Mr. Rawson (four client companies) | $ | 1,113,117 | $ | (4,954,373) | |||||||
Mr. Sarvadi (five client companies) | $ | 554,640 | $ | (1,149,970) |
2021 Proxy Statement |
Compensation program emphasizing variable and at-risk compensation with at least 70% of each NEO’s target compensation tied to annual bonus and long-term incentives | ||||||
a | Long-term incentive program prioritizing performance-based LTI with 65% of the CEO’s and on average, 47.5% of the other NEO’s LTI mix in performance-based LTI | |||||
a | Stock ownership guidelines requiring the CEO to hold shares equal to five times base salary, the other executive officers to hold shares equal to three times or one and one-half times base salary, depending on the executive tier level established by the Compensation Committee, and non-employee directors to hold shares equal to four times the annual cash retainer | |||||
a | Clawback policy for incentive compensation paid to any employee, including NEOs and other executive officers | |||||
a | Minimum vesting period of three years for grants of restricted stock, restricted stock units, stock options and phantom shares, with limited exceptions for new hire awards, performance awards or terminations due to death, disability, retirement or change in control | |||||
a | Double trigger requirement for | |||||
a | Hedging policy prohibiting employees and directors from engaging in hedging transactions involving shares of our common stock | |||||
a | Pledging policy prohibiting employees and directors from engaging in pledging transactions involving shares of our common stock that would be considered significant by the Board | |||||
a | A lead independent director | |||||
a | Compensation Committee composed entirely of outside, independent directors | |||||
a | Independent compensation consultant hired by, and reporting directly to, the Compensation Committee |
Insperity | 50 | 2021 Proxy Statement |
r | Employment agreements with NEOs or other executive officers | |||||
r | Executive pension or other similar retirement or supplemental benefits | |||||
r | Single trigger change in control agreements for NEOs or other executive officers | |||||
r | Tax gross-ups in the event of a change in control | |||||
r | Medical coverage for retirees | |||||
r | Excessive benefits and perquisites |
The Board recommends that you select “For” the adoption of the resolution approving the compensation of the Company’s NEOs. Properly dated and signed proxies will be so voted unless stockholders specify otherwise. |
2021 Proxy Statement |
Insperity | 52 | 2021 Proxy Statement |
The Board and the Finance, Risk Management and Audit Committee recommend that stockholders vote “For” the ratification of appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for |
2021 Proxy Statement |
Insperity | 54 | 2021 Proxy Statement |
Insperity | 55 | 2021 Proxy Statement |