(1) | To elect directors; |
(2) | To re-approve the performance objectives of the 2006 and 2010 Stock Incentive Plans and target bonus program; |
(3) | To ratify the selection of independent accountants by the Audit Committee of the Board of Directors; |
To hold an advisory vote to approve executive compensation; and |
To transact any other business properly brought before the meeting. |
PAGE | ||
CONSIDERATION OF | 1 | |
1 | ||
1 | ||
PROXY STATEMENT | 4 | |
Stockholders Entitled to Vote | 4 | |
Quorum | 4 | |
Vote Requirements | 5 | |
How to Vote | 5 | |
PROPOSAL 1 – ELECTION OF DIRECTORS | ||
7 | ||
General | 7 | |
Nominees | 7 | |
Recommendation | 9 | |
9 | ||
Narrative Disclosure to Director Compensation Table | 9 | |
Directors Emeriti | 10 | |
Board of Directors Meetings and Committees | 11 | |
Procedures Regarding Director Candidates Recommended by Stockholders | 11 | |
Director Independence | 12 | |
Board Risk Oversight | ||
13 | ||
Compensation Risk | 13 | |
Compensation Committee Interlocks and Insider Participation | 13 | |
Board Leadership | 13 | |
Code of Ethics | ||
Stockholder | 14 | |
COMPENSATION DISCUSSION AND ANALYSIS | 14 | |
Consideration of the 2015 Say On Pay Vote | 14 | |
Overview of | ||
15 | ||
How Compensation Decisions are Made | 15 | |
Role of Executive Officers | 16 | |
Elements of Executive Compensation | 16 | |
Executive Compensation Consultant, Independence | 16 | |
Peer | 17 | |
Base Salaries | 17 | |
Annual Incentive Compensation | 18 | |
20 | ||
21 | ||
Employment Agreements | 22 | |
Stock Ownership Guidelines |
REPORT OF THE COMPENSATION COMMITTEE | 24 |
EXECUTIVE COMPENSATION | 25 | |
Summary Compensation | 25 | |
All Other Compensation Table | 26 | |
27 | ||
Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table | 27 | |
Employment Agreements | 28 | |
Annual Cash Incentives | 29 | |
Stock Incentive Plans | ||
Outstanding Equity Awards at Fiscal Year End | ||
Option Exercises and Stock Vested | ||
Nonqualified Deferred Compensation | ||
Excess Benefit Plan and Deferred Compensation Plan | ||
Potential Payments Upon Termination or Change | ||
TRANSACTIONS WITH RELATED PERSONS | ||
SECURITY OWNERSHIP | 42 | |
Security Ownership of Certain Beneficial Owners | ||
Security Ownership of Executive Officers and Directors | 43 | |
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE | 44 | |
2010 STOCK INCENTIVE PLANS AND TARGET BONUS INCENTIVE PROGRAM | ||
Recommendation | 44 | |
PROPOSAL | ||
PUBLIC ACCOUNTING FIRM | ||
47 | ||
REPORT OF THE AUDIT COMMITTEE | ||
PRINCIPAL ACCOUNTANT FEES AND SERVICES | ||
PROPOSAL | ||
49 | ||
PROPOSALS FOR THE NEXT ANNUAL MEETING | ||
Proposals to be Included in Our | ||
Stockholder Proposals Regarding Nominations or Other Business at the | ||
IMPORTANT NOTICE REGARDING AVAILABILITY OF | ||
PROXY MATERIALS FOR ANNUAL MEETING | ||
OTHER INFORMATION |
· | Replacement of the |
CHEMED CORPORATION | |||||||||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED NET INCOME | |||||||||||||||||||||||||||||||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2003 THROUGH 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||||||||||||
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | |||||||||||||||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | |||||||||||||||||||||||||||||||||||||
Reconciliation of Adjusted Net Income | |||||||||||||||||||||||||||||||||||||||||||||||
(1 | ) | Net income/(loss) | $ | (3,435 | ) | $ | 27,512 | $ | 35,817 | $ | 50,651 | $ | 61,641 | $ | 67,281 | $ | 73,784 | $ | 81,831 | $ | 85,979 | $ | 89,304 | $ | 77,227 | ||||||||||||||||||||||
Add/(deduct): | |||||||||||||||||||||||||||||||||||||||||||||||
(2 | ) | Discontinued operations | 14,623 | (8,417 | ) | 411 | 7,071 | (1,201 | ) | 1,088 | 253 | - | - | - | - | ||||||||||||||||||||||||||||||||
(3 | ) | (Gains)/losses on investments | (3,351 | ) | - | - | 918 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
(4 | ) | Gain on sale of property | - | - | - | - | (724 | ) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
(5 | ) | Impairment loss on transportation equipment | - | - | - | - | - | 1,714 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
(6 | ) | Severance charges | 2,358 | - | - | - | - | - | - | - | - | - | 184 | ||||||||||||||||||||||||||||||||||
(7 | ) | Dividend income from VITAS | (1,379 | ) | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
(8 | ) | Equity in earnings of VITAS | (922 | ) | 4,105 | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
(9 | ) | Long-term incentive compensation | - | 5,437 | 3,434 | - | 4,427 | - | 3,134 | 2,957 | 1,880 | 228 | 822 | ||||||||||||||||||||||||||||||||||
(10 | ) | Loss/(gain) on extinguishment of debt | - | 2,030 | 2,523 | 273 | 8,778 | (2,156 | ) | - | - | - | - | 294 | |||||||||||||||||||||||||||||||||
(11 | ) | Legal expenses of OIG investigation | - | - | 397 | 662 | 141 | 28 | 363 | 627 | 737 | 752 | 1,333 | ||||||||||||||||||||||||||||||||||
(12 | ) | Stock option expense | - | - | 137 | 769 | 2,962 | 4,619 | 5,464 | 4,909 | 5,298 | 5,143 | 3,813 | ||||||||||||||||||||||||||||||||||
(13 | ) | Litigation settlements and expenses | - | 1,897 | 10,757 | 169 | 1,168 | - | 534 | 1,126 | 1,397 | 617 | 16,926 | ||||||||||||||||||||||||||||||||||
(14 | ) | Prior period tax adjustments | - | (1,620 | ) | (1,961 | ) | (2,115 | ) | - | (322 | ) | - | - | - | - | (1,782 | ) | |||||||||||||||||||||||||||||
(15 | ) | Debt registration expenses | - | 727 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
(16 | ) | VITAS transactions costs | - | 222 | (959 | ) | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
(17 | ) | Prior-period insurance adjustments | - | - | (1,014 | ) | - | - | 358 | - | - | - | - | - | |||||||||||||||||||||||||||||||||
(18 | ) | Non-cash interest on convertible debt | - | - | - | - | 2,335 | 3,228 | 3,988 | 4,313 | 4,664 | 5,041 | 5,448 | ||||||||||||||||||||||||||||||||||
(19 | ) | Income tax impact of non-taxable investments | - | - | - | - | 46 | 3,062 | (756 | ) | - | - | - | - | |||||||||||||||||||||||||||||||||
(20 | ) | Expenses related to contested proxy solicitation | - | - | - | - | - | - | 2,525 | - | - | - | - | ||||||||||||||||||||||||||||||||||
(21 | ) | Acquisition Expenses | - | - | - | - | - | - | - | 198 | 75 | 114 | 38 | ||||||||||||||||||||||||||||||||||
(22 | ) | Costs to Shut down HVAC operations | - | - | - | - | - | - | - | - | - | 649 | - | ||||||||||||||||||||||||||||||||||
(23 | ) | Securities litigation | - | - | - | - | - | - | - | - | - | 469 | 69 | ||||||||||||||||||||||||||||||||||
(24 | ) | Other | - | - | - | (296 | ) | (296 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
(25 | ) | Adjusted net income | $ | 7,894 | $ | 31,893 | $ | 49,542 | $ | 58,102 | $ | 79,277 | $ | 78,900 | $ | 89,289 | $ | 95,961 | $ | 100,030 | $ | 102,317 | $ | 104,372 | |||||||||||||||||||||||
Proposal | Vote Required | Voting Options | Effect of Abstentions | Broker Discretionary Voting Allowed? | Effect of Broker Non-Votes | Recommended Vote | |
Election of Directors | Votes cast for exceed votes cast against | FOR, AGAINST or ABSTAIN | No effect, not treated as a “vote cast” | No | No effect, not treated as a “vote cast” | FOR | |
Re-Approval of | Majority of shares with voting power present in person or represented by proxy | FOR, AGAINST or ABSTAIN | Treated as a vote AGAINST the proposal | No | No effect, not treated as a “vote cast” | FOR | |
(Proposal 3) | Majority of shares with voting power present in person or represented by proxy | FOR, AGAINST or ABSTAIN | Treated as a vote AGAINST the proposal | Yes | Not applicable | FOR | |
Non-Binding Advisory Vote on Executive Compensation (Say On Pay) (Proposal 4) | Majority of shares with voting power present in person or represented by proxy | FOR, AGAINST or ABSTAIN | Treated as a vote AGAINST the proposal | No | No effect – not entitled to vote | FOR |
Vote by Mail: You can vote your shares by mail by completing, signing, dating and returning your proxy card in the postage-paid envelope provided. In order for your proxy to be validly submitted and for your shares to be voted in accordance with your instructions, we must receiveyour mailed proxy card by 11:59 p.m. Central Time on May |
Vote by Telephone: You can also vote your shares by calling the number (toll-free in the United States and Canada) indicated on your proxy card at any time and following the recorded instructions. If you submit your proxy by telephone, then you may submit your voting instructions up until 11:59 p.m. Central Time on May |
Vote via the Internet: You can vote your shares via the Internet by going to the Web site address for Internet voting indicated on your proxy card and following the steps outlined on the secure Web site. If you submit your proxy via the Internet, then you may submit your voting instructions up until 11:59 p.m. Central Time on May |
Kevin J. McNamara Director since 1987 Age: | Mr. McNamara’s experience, qualifications, attributes and skills include serving as President and Chief Executive Officer of the Company. He has held these positions since August 1994 and May 2001, respectively. Previously, he served as Executive Vice President, Secretary and General Counsel from November 1993, August 1986 and August 1986, respectively, to August 1994. |
Joel F. Gemunder Director since 1977 Age: | Mr. Gemunder’s experience, qualifications, attributes and skills include having served as President and Chief Executive Officer of Omnicare, Inc., Cincinnati, Ohio (healthcare products and services) (“Omnicare”). Omnicare, a former Fortune 500 Company acquired by CVS Health Corporation in 2015, is a leading provider of pharmaceutical |
Patrick P. Grace Director since 1996 Age: | Mr. Grace’s experience, qualifications, attributes and skills include serving in various executive positions at W.R. Grace & Co. from 1977 to 1995, most recently as President and CEO of Grace Logistics, Inc. From 1996 to present, he served as Chairman of the Grace Institute, New York, New York (workforce development for women). He was the co-founder and managing Principal of Apollo Philanthropy Partners, L.L.C., New York, New York (philanthropic advisory services) from 2008 to 2012. From 1996 to present he serves as President of MLP Capital, Inc., New York, New York, an investment holding company which has had several real estate and mining interests in the southeastern United States. Since 2008 he has served as Chairman of the board of KickStart International, a global anti-poverty organization. He also serves as a director of TONIX Pharmaceuticals, Inc., New York, New York (specialty pharmaceutical product development and commercialization). He earned a Master’s of Business Administration degree in finance from Columbia University. |
Thomas C. Hutton Director since 1985 Age: | Mr. Hutton’s experience, qualifications, attributes and skills include serving as a Vice President of the Company. He has held this position since February 1988. Previously, Mr. Hutton, who has a J.D. and Master’s of Public Administration degree from Cornell University, practiced corporate law in New York concentrating in securities and regulatory law from 1977 to 1987. He served as a director of Omnicare from May 1983 to May 2001. Currently Mr. Hutton serves as a trustee on three private foundations including the Chemed Foundation. |
Walter L. Krebs Director from May 1989 to April 1991, May 1995 to May 2003 and since May 2005 Age: | Mr. Krebs’ experience, qualifications, attributes and skills include having served as Senior Vice President-Finance, Chief Financial Officer and Treasurer of Service America Systems, Inc. (home and service warranties), a then-wholly owned subsidiary of the Company (“Service America”). We sold Service America in 2005. He retired from this position in July 1999, having held the position since October 1997. Previously, he was a Director-Financial Services of DiverseyLever, Inc. (formerly known as Diversey Corporation), Detroit, Michigan (specialty chemicals) (“Diversey”), from April 1991 to April 1996. Previously, from January 1990 to April 1991, he was Senior Vice President and the Chief Financial Officer of the Company’s then-wholly owned subsidiary, DuBois Chemicals, Inc. (specialty chemicals) (“DuBois”). We sold DuBois in 1991. |
Andrea R. Lindell Director since May 2008 Age: | Ms. Lindell’s experience, qualifications, attributes and skills include having served as Dean and a Professor of the College of Nursing at the University of Cincinnati. She retired from these positions in January 2011 having held them since December 1990. She is currently Professor Emeritus at the |
Thomas P. Rice Director since May 2009 Age: | Mr. Rice’s experience, qualifications, attributes and skills include having served as Chief Executive Officer of Andrx Corporation, Fort Lauderdale, Florida (specialty pharmaceuticals) (“Andrx”), from February 2004 to November 2006, when Andrx was sold to Watson Pharmaceuticals. Following the sale, Mr. Rice returned as General Manager and Majority Partner |
Donald E. Saunders Director from May 1981 to May 1982, May 1983 to May 1987 and since May 1998 Age: | Mr. Saunders’ experience, qualifications, attributes and skills include |
George J. Walsh III Director since 1995 Age: | Mr. Walsh’s experience, qualifications, attributes and skills include serving as a partner with the law firm of Thompson Hine LLP, New York, New York. He has held this position since May 2002. Prior to this date, Mr. Walsh was a partner with the law firm of Gould & Wilkie LLP, New York, New York, and held this position since January 1979. Gould & Wilkie merged with Thompson Hine on May 1, 2002. Mr. Walsh was elected the Chairman of the Board of Directors in March 2009. |
Frank E. Wood Director since 2002 Age: | Mr. Wood’s experience, qualifications, attributes and skills include serving since 1994 as President and Chief Executive Officer of SecretWorks, LLC (“Secret”), Cincinnati, Ohio. Secret |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($)(b) | All Other Compensation ($) | Total ($) | ||||
Joel F. Gemunder | 80,000 | 66,023 | - | 146,023 | ||||
Patrick P. Grace | 95,500 | 66,023 | - | 161,523 | ||||
Walter L. Krebs | 82,000 | 66,023 | - | 148,023 | ||||
Sandra E. Laney | 20,500 | 66,023 | - | 86,523 | ||||
Andrea R. Lindell | 82,000 | 66,023 | - | 148,023 | ||||
Thomas P. Rice | 87,500 | 66,023 | - | 153,523 | ||||
Donald E. Saunders | 104,500 | 66,023 | - | 170,523 | ||||
George J. Walsh III | 235,500 | 66,023 | - | 301,523 | ||||
Frank E. Wood | 82,000 | 66,023 | - | 148,023 |
(a) | The Director Compensation Table excludes executive compensation figures for Messrs. McNamara and Hutton who are employees of the Company. |
(b) | Amounts for each of Messrs. Gemunder, Grace, Krebs, Rice, Saunders, Walsh, Wood, Ms. Lindell and Ms. Laney include contributions of $6,000 of Capital Stock held in the Chemed Director Deferred Compensation Plan. |
Director | Audit Committee | Compensation Committee | Nominating Committee |
J. F. Gemunder P. P. Grace W. L. Krebs A. R. Lindell T. P. Rice* D. E. Saunders* G. J. Walsh III F. E. Wood | x x Chair | x x Chair x | x Chair x |
Number of 2013 Meetings | 7 | 5 | 1 |
Director | Audit Committee | Compensation Committee | Nominating Committee |
J. F. Gemunder P. P. Grace* W. L. Krebs A. R. Lindell T. P. Rice* D. E. Saunders* G. J. Walsh III F. E. Wood | x x Chair | x x Chair x | x Chair x |
Number of Meetings | 7 | 4 | 1 |
· | Replacement of the |
ABM Industries, Inc. | |
Acadia Healthcare Co., Inc. | Hanger, Inc. |
Alliance Healthcare Services, Inc. | Healthcare Services Group |
Almost Family, Inc. | Healthways, Inc. |
Amedisys, Inc. | LHC Group, Inc. |
Bioscrip, Inc. | Mednax, Inc. |
Brookdale Senior Living, Inc. | National Healthcare Corp. |
Capital Senior Living Corp. | Radnet, Inc. |
Clean Harbors, Inc. | Rollins, Inc. |
Comfort Systems USA, Inc. | |
Team, Inc. | |
Ensign Group, Inc. | Tetra Tech, |
Inc |
Target Bonus Percentages of Base Salary | ||||
Incentive Compensation | ||||
K. J. McNamara | 125 | % | ||
D. P. Williams | 100 | |||
T. S. O'Toole | 100 | |||
S. S. Lee | 100 | |||
A. V. Tucker | 75 |
2015 Actual Target | |||||||||
Adjusted E.P.S. | Return on Total Assets | ||||||||
(75%) | (25%) | ||||||||
VITAS | |||||||||
(1) | Reported | $ | 5.56 | 17.6 | % | ||||
(2) | Target | 5.25 | 16.4 | % | |||||
(3) | Percent of Target | 105.9 | % | 107.3 | % | ||||
(4) | Target Multiplier | 159.0 | % | 118.3 | % | ||||
Roto-Rooter | |||||||||
(5) | Reported | $ | 2.79 | 18.9 | % | ||||
(6) | Target | 2.53 | 17.4 | % | |||||
(7) | Percent of Target | 110.3 | % | 108.6 | % | ||||
(8) | Target Multiplier | 200.0 | % | 121.5 | % | ||||
Chemed Consolidated | |||||||||
(9) | Reported | $ | 7.01 | 13.9 | % | ||||
(10) | Target | 6.59 | 12.7 | % | |||||
(11) | Percent of Target | 106.4 | % | 109.4 | % | ||||
(12) | Target Multiplier | 164.0 | % | 123.5 | % |
NEO | Target Bonus | Actual Bonus | Actual as a % to Target | |||||||||
K. J. McNamara | $ | 1,242,500 | $ | 1,911,897 | 153.9 | % | ||||||
D. P. Williams | 550,000 | 846,313 | 153.9 | |||||||||
T. S. O'Toole | 675,000 | 1,004,569 | 148.8 | |||||||||
S. S. Lee | 355,000 | 640,331 | 180.4 | |||||||||
A. V. Tucker | 210,000 | 323,138 | 153.9 |
3-Year Adjusted EPS CAGR | Percentage of Target Shares | 3-Year Adjusted EPS CAGR | Percentage of Target Shares | |||||
Maximum | 15% | 100.0% | 15 | % | 200.0 | % | ||
Target | 7% | 50.0% | 7 | % | 100.0 | % | ||
Minimum | 3% | 0.0% | 3 | % | 0.0 | % |
3-Year TSR Percentile | Percentage of Target Shares | ||||
Maximum | Greater than 90th | 200.0 | % | ||
75th | 150.0 | % | |||
60th | 125.0 | % | |||
Target | 50th | 100.0 | % | ||
40th | 75.0 | % | |||
25th | 50.0 | % | |||
Minimum | Less than 25th | 0.0 | % |
a) | termination of employment by the Company without cause; or |
b) | termination of employment by the employee within 90 days of an event giving him or her good reason to so terminate. |
Name and Principal Position | Year | Salary ($) | Non-Equity Incentive Plan Compensation ($) | Stock Awards ($)(a) | Option Awards ($)(a) | Non-Qualified Deferred Compensation Earnings ($)(b) | All Other Compensation ($)(c) | Total ($) | ||||||||||||||
K.J. McNamara | 2015 | $ | 968,167 | $ | 1,911,897 | $ | 1,667,705 | $ | 2,062,200 | $ | 17,144 | $ | 798,339 | $ | 7,425,452 | |||||||
President and CEO | ||||||||||||||||||||||
2014 | 904,750 | 1,335,512 | 687,080 | 1,510,600 | 11,705 | 1,651,285 | 6,100,932 | |||||||||||||||
2013 | 857,917 | 1,381,084 | 1,282,763 | 753,305 | 12,854 | 618,846 | 4,906,769 | |||||||||||||||
D.P. Williams | ||||||||||||||||||||||
Executive Vice | 2015 | 529,667 | 846,313 | 647,788 | 707,040 | 7,927 | 339,735 | 3,078,470 | ||||||||||||||
President and CFO | 2014 | 485,833 | 570,052 | 239,618 | 517,920 | 5,411 | 519,385 | 2,338,219 | ||||||||||||||
2013 | 463,067 | 601,173 | 485,305 | 262,789 | 5,943 | 239,790 | 2,058,067 | |||||||||||||||
T.S. O'Toole | ||||||||||||||||||||||
Executive Vice | 2015 | 661,833 | 1,004,569 | 408,655 | 648,120 | 15,103 | 355,953 | 3,094,233 | ||||||||||||||
President | 2014 | 627,167 | 771,338 | 199,733 | 469,365 | 10,312 | 414,871 | 2,492,786 | ||||||||||||||
2013 | 610,500 | 610,500 | 465,702 | 218,981 | 11,325 | 243,479 | 2,160,487 | |||||||||||||||
S.S. Lee | ||||||||||||||||||||||
Executive Vice | 2015 | 350,750 | 640,331 | 413,023 | 368,250 | 7,783 | 134,730 | 1,914,867 | ||||||||||||||
President | 2014 | 329,500 | 407,756 | 139,808 | 280,540 | 5,314 | 206,514 | 1,369,432 | ||||||||||||||
2013 | 314,375 | 370,142 | 199,817 | 153,284 | 5,836 | 180,288 | 1,223,742 | |||||||||||||||
A.V. Tucker, Jr. | ||||||||||||||||||||||
Vice President | 2015 | 274,750 | 323,138 | 287,241 | 335,844 | 4,798 | 138,251 | 1,364,022 | ||||||||||||||
and Controller | 2014 | 262,500 | 231,037 | 119,850 | 246,012 | 3,268 | 134,820 | 997,487 | ||||||||||||||
2013 | 237,667 | 243,541 | 233,151 | 131,394 | 3,582 | 87,817 | 937,152 |
(a) | Amounts represent the grant date fair value of stock options and stock awards determined in accordance with the FASB's stock based compensation rules. See Note 4 to the Consolidated Financial Statements included as Exhibit 13 to the Company's 2015 Annual Report on Form 10-K for a description of the assumptions used in determining the grant date fair value. |
(b) | Amounts represent interest earnings on balances in each named executive officer's account under the Supplemental Pension Plans and also, for Mr. Tucker, the 1986 Severance Plan, that are in excess of 120% of the long-term applicable federal rate in effect in July 2015. |
(c) | See "All Other Compensation Table" for details. |
K.J. McNamara | D.P. Williams | T.S. O'Toole | S.S. Lee | A.V. Tucker, Jr. | |||||||||||
Company contribution to non-qualified deferred compensation plans | $ | 599,756 | $ | 270,661 | $ | 318,679 | $ | 61,546 | $ | 114,105 | |||||
Personal use of Company aircraft | 150,053 | 38,098 | - | - | - | ||||||||||
Company contributions to unfunded supplemental retirement plan | 26,356 | 12,185 | 23,218 | 11,965 | 7,753 | ||||||||||
Personal use of Company apartment | 6,860 | - | - | - | 2,440 | ||||||||||
Company contribution to 401(k) plan | 7,950 | 7,950 | 7,950 | 7,950 | 7,950 | ||||||||||
Long-term care insurance | 5,746 | 6,413 | 3,681 | 6,123 | 4,808 | ||||||||||
Term life insurance | 1,618 | 1,195 | 2,425 | 691 | 1,195 | ||||||||||
Personal use of company golf club membership | - | 3,233 | - | 7,168 | - | ||||||||||
Payment of certain housing costs | - | - | - | 31,943 | - | ||||||||||
Supplemental life insurance | - | - | - | 3,515 | - | ||||||||||
Personal use of company car | - | - | - | 3,829 | - | ||||||||||
Total | $ | 798,339 | $ | 339,735 | $ | 355,953 | $ | 134,730 | $ | 138,251 |
Name | Grant Date | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Share) (a) | Closing Market Price on Grant Date ($/Share) | Grant Date Fair Value of Award ($)(b) | ||||||
K.J. McNamara | 2/20/2015 | 3,094 | - | n.a. | $ | 113.73 | $ | 350,055 | ||||
2/20/2015 | 3,094 | - | n.a. | 113.73 | 441,050 | |||||||
5/18/2015 | 7,200 | - | n.a. | 122.46 | 876,600 | |||||||
11/6/2015 | - | 70,000 | $ | 157.36 | 158.50 | 2,062,200 | ||||||
D.P. Williams | 2/20/2015 | 1,105 | - | n.a. | 113.73 | 125,020 | ||||||
2/20/2015 | 1,105 | - | n.a. | 113.73 | 157,518 | |||||||
5/18/2015 | 3,000 | - | n.a. | 122.46 | 365,250 | |||||||
11/6/2015 | - | 24,000 | $ | 157.36 | 158.50 | 707,040 | ||||||
T.S. O'Toole | 2/20/2015 | 884 | - | n.a. | 113.73 | 100,016 | ||||||
2/20/2015 | 884 | - | n.a. | 113.73 | 126,014 | |||||||
5/18/2015 | 1,500 | - | n.a. | 122.46 | 182,625 | |||||||
11/6/2015 | - | 22,000 | $ | 157.36 | 158.50 | 648,120 | ||||||
S.S. Lee | 2/20/2015 | 663 | - | n.a. | 113.73 | 75,012 | ||||||
2/20/2015 | 663 | - | n.a. | 113.73 | 94,511 | |||||||
5/18/2015 | 2,000 | - | n.a. | 122.46 | 243,500 | |||||||
11/6/2015 | - | 12,500 | $ | 157.36 | 158.50 | 368,250 | ||||||
A.V. Tucker, Jr. | 2/20/2015 | 552 | - | n.a. | 113.73 | 62,453 | ||||||
2/20/2015 | 552 | - | n.a. | 113.73 | 78,688 | |||||||
5/18/2015 | 1,200 | - | n.a. | 122.46 | 146,100 | |||||||
11/6/2015 | - | 11,400 | $ | 157.36 | 158.50 | 335,844 |
(a) | The exercise price of option awards is the average of the high and low sale prices of the New York Stock Exchange on the date of grant. |
(b) | Amounts represent the aggregate grant date fair value of the awards determined in accordance with the FASB's stock based compensation rules. Note 4 to the Consolidated Financial Statements included as Exhibit 13 to the Company's annual report of form 10-K for a description of the assumptions used in determining the grant date fair value. |
Name | Option Awards | Stock Awards | ||||||
Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value Of Shares or Units of Stock That Have Not Vested (j) ($) | |||
K.J. McNamara | 35,000 | - | 65.17 | 2/18/2021 | - | - | ||
86,000 | - | 63.36 | 2/14/2022 | - | - | |||
33,932 | 16,967 | (a) | 70.30 | 11/8/2023 | - | - | ||
23,333 | 46,667 | (b) | 106.59 | 11/7/2024 | - | - | ||
- | 70,000 | (c) | 157.36 | 11/6/2020 | - | - | ||
- | - | - | n.a. | 9,470 | (d) | 1,418,606 | ||
- | - | - | n.a. | 7,547 | (e) | 1,130,541 | ||
- | - | - | n.a. | 7,200 | (f) | 1,078,560 | ||
- | - | - | n.a. | 6,188 | (g) | 926,962 | ||
- | - | - | n.a. | 7,200 | (h) | 1,078,560 | ||
D.P. Williams | 35,000 | - | 65.17 | 2/18/2021 | - | - | ||
30,000 | - | 63.36 | 2/14/2022 | - | - | |||
11,837 | 5,919 | (a) | 70.30 | 11/8/2023 | - | - | ||
8,000 | 16,000 | (b) | 106.59 | 11/7/2024 | - | - | ||
- | 24,000 | (c) | 157.36 | 11/6/2020 | - | - | ||
- | - | - | n.a. | 3,898 | (d) | 583,920 | ||
- | - | - | n.a. | 3,107 | (e) | 465,429 | ||
- | - | - | n.a. | 2,511 | (f) | 376,148 | ||
- | - | - | n.a. | 2,210 | (g) | 331,058 | ||
- | - | - | n.a. | 3,000 | (h) | 449,400 | ||
T.S. O'Toole | - | 4,932 | (a) | 70.30 | 11/8/2023 | - | - | |
- | 14,500 | (b) | 106.59 | 11/7/2024 | - | - | ||
- | 22,000 | (c) | 157.36 | 11/6/2020 | - | - | ||
- | - | - | n.a. | 3,709 | (d) | 555,608 | ||
- | - | - | n.a. | 3,360 | (e) | 503,328 | ||
- | - | - | n.a. | 2,093 | (f) | 313,531 | ||
- | - | - | n.a. | 1,768 | (g) | 264,846 | ||
- | - | - | n.a. | 1,500 | (h) | 224,700 |
Name | Option Awards | Stock Awards | ||||||
Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value Of Shares or Units of Stock That Have Not Vested (j) ($) | |||
S.S. Lee | 9,000 | - | 65.17 | 2/18/2021 | - | - | ||
17,500 | - | 63.36 | 2/17/2022 | - | - | |||
6,904 | 3,453 | (a) | 70.30 | 11/8/2023 | - | - | ||
4,333 | 8,667 | (b) | 106.59 | 11/7/2024 | - | - | ||
- | 12,500 | (c) | 157.36 | 11/6/2020 | - | - | ||
- | - | - | n.a. | 1,105 | (d) | 165,529 | ||
- | - | - | n.a. | 764 | (e) | 114,447 | ||
- | - | - | n.a. | 1,465 | (f) | 219,457 | ||
- | - | - | n.a. | 1,326 | (g) | 198,635 | ||
- | - | - | n.a. | 2,000 | (h) | 299,600 | ||
A.V. Tucker, Jr. | 4,500 | - | 65.17 | 2/18/2021 | - | - | ||
5,918 | 2,960 | (a) | 70.30 | 11/8/2023 | - | - | ||
3,800 | 7,600 | (b) | 106.59 | 11/7/2024 | - | - | ||
- | 11,400 | (c) | 157.36 | 11/6/2020 | - | - | ||
- | - | n.a. | 1,799 | (d) | 269,490 | |||
- | - | n.a. | 1,434 | (e) | 214,813 | |||
- | - | - | n.a. | 1,256 | (f) | 188,149 | ||
- | - | - | n.a. | 1,104 | (g) | 165,379 | ||
- | - | - | n.a. | 1,200 | (h) | 179,760 |
(a) | All of the unvested stock option award will vest on November 8, 2016. |
(b) | Half of the remaining stock option award will vest on November 7, 2016 and the remainder on November 7, 2017. |
(c) | One third of the stock option award will vest on November 6, 2016, one third on November 6, 2017 and the remainder on November 6, 2018. |
(d) | Award will vest in full on February 17, 2016. |
(e) | Award will vest in full on February 20, 2017. |
(f) | Award vests upon attainment of certain return or earnings targets on or prior to December 31, 2016. |
(g) | Award vests upon attainment of certain return or earnings targets on or prior to December 31, 2017. |
(h) | One third of the stock award will vest on May 18, 2016, one third on May 18, 2017 and the remainder on May 18, 2018. |
(i) | Amounts are based on the $149.80 closing price of the Capital Stock on December 31, 2015. |
Option Awards | Stock Awards | |||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | ||||||
K.J. McNamara | 135,000 | $ | 9,855,550 | 17,907 | $ | 2,034,772 | ||||
D.P. Williams | 85,000 | 7,496,700 | 8,390 | 953,356 | ||||||
T.S. O'Toole | 20,516 | 1,201,598 | 8,390 | 953,356 | ||||||
S.S. Lee | 67,000 | 5,483,880 | 3,717 | 422,363 | ||||||
A.V. Tucker, Jr. | 20,500 | 1,252,545 | 4,049 | 460,088 |
Name | Executive Contributions in Last FY ($) | Registrant Contributions in Last FY ($)(a)(b) | Aggregate Earnings in Last FY ($) | Aggregate Balance at Last FYE ($)(b) | ||||||||
K.J. McNamara | $ | 51,216 | $ | 599,756 | $ | 1,198,796 | $ | 13,756,765 | ||||
Excess Benefit Plan | ||||||||||||
Supplemental Pension and Life Insurance Plan | - | 26,356 | 30,614 | 466,386 | ||||||||
D.P. Williams | ||||||||||||
Excess Benefit Plan | 131,956 | 270,661 | 54,004 | 3,687,852 | ||||||||
Supplemental Pension and Life Insurance Plan | - | 12,185 | 14,154 | 215,622 | ||||||||
T.S. O'Toole | ||||||||||||
Excess Benefit Plan | 70,090 | 318,679 | 650,872 | 5,908,189 | ||||||||
Supplemental Pension and Life Insurance Plan | - | 23,218 | 26,970 | 410,860 | ||||||||
S.S. Lee | ||||||||||||
Roto-Rooter Deferred Compensation Plan | - | 185,517 | (63,968) | 4,197,961 | ||||||||
Supplemental Pension and Life Insurance Plan | - | 11,965 | 13,898 | 211,730 | ||||||||
A.V. Tucker, Jr. | ||||||||||||
Excess Benefit Plan | - | 114,105 | 306,080 | 2,342,898 | ||||||||
Supplemental Pension and Life Insurance Plan | - | 7,753 | 8,191 | 125,111 | ||||||||
1986 Severance Plan | - | - | 378 | 5,826 |
(a) | Amounts reported in All Other Compensation Table for |
(b) | To the extent that earnings reflected herein exceeded 120% of the long-term applicable federal rate as in effect in July |
Name of Fund | Rate of Return | Name of Fund | Rate of Return |
American Europacific Growth Fund | -0.53% | Merrill Lynch Aggressive Model Portfolio | -1.58% |
Blackrock S&P 500 Index | 1.35% | Merrill Lynch Conservative Model Portfolio | -0.53% |
Chemed Corporation Common Stock | 42.75% | Merrill Lynch Moderate Model Portfolio | -1.20% |
Columbia Midcap Index Fund | -2.32% | Merrill Lynch Moderate/Aggressive Model Portfolio | -1.37% |
Columbia Small Cap Value Fund | -6.25% | Merrill Lynch Moderate/Conservative Model Portfolio | -0.98% |
Dodge and Cox Income | -0.59% | Oppenheimer Global Fund | 4.13% |
Goldman Sachs Mid Cap Value Fund | -9.12% | Prudential Jennison Mid Cap Fund | -2.40% |
Harbor International Fund | -3.82% | Pimco Low Duration Fund | 0.66% |
Invesco Growth and Income Fund | -2.90% | Pimco Real Return Bond Fund | -2.83% |
Invesco Real Estate Fund | 2.07% | Templeton Global Bond Fund | -4.03% |
Lord Abbett Developing Growth Fund | -8.64% | Retirement Reserves Money Fund | 0.00% |
Mainstay Large Cap Growth Fund | 6.17% | Supplemental Pension and Life | 7.00% |
K.J. McNamara | D.P. Williams | T.S. O'Toole | S.S. Lee | A.V. Tucker, Jr. | ||||||||||||||||
Termination without Cause | ||||||||||||||||||||
Severance payment (a)(b) | $ | 4,970,000 | $ | 1,375,000 | $ | 1,687,500 | $ | 532,500 | $ | 420,000 | ||||||||||
Pro-rated annual incentive | ||||||||||||||||||||
compensation (a) | 1,610,694 | 653,411 | 718,264 | 341,553 | 252,694 | |||||||||||||||
Welfare benefit continuation (c) | 26,214 | 27,509 | 14,334 | 20,281 | 12,410 | |||||||||||||||
Acceleration of restricted stock | ||||||||||||||||||||
awards (d) | 3,627,707 | 1,498,749 | 1,283,636 | 579,576 | 664,063 | |||||||||||||||
Total | $ | 10,234,615 | $ | 3,554,669 | $ | 3,703,734 | $ | 1,473,910 | $ | 1,349,167 | ||||||||||
Involuntary Termination for Cause or | ||||||||||||||||||||
Voluntary Termination | ||||||||||||||||||||
Severance payment | - | - | - | - | - | |||||||||||||||
Welfare benefit continuation | - | - | - | - | - | |||||||||||||||
Total | - | - | - | - | - | |||||||||||||||
Termination due to Death or Disability | ||||||||||||||||||||
Pro-rated annual incentive | ||||||||||||||||||||
compensation (a) | $ | 1,610,694 | $ | 653,411 | $ | 718,264 | $ | 341,553 | $ | 252,694 | ||||||||||
Welfare benefit continuation | - | - | - | - | - | |||||||||||||||
Acceleration of restricted stock | ||||||||||||||||||||
awards (d) | 3,627,707 | 1,498,749 | 1,283,636 | 579,576 | 664,063 | |||||||||||||||
Total | $ | 5,238,401 | $ | 2,152,160 | $ | 2,001,900 | $ | 921,129 | $ | 916,757 |
Termination due to Retirement | ||||||||||||||||||||
Pro-rated annual incentive | ||||||||||||||||||||
compensation (a) | $ | 1,610,694 | $ | 653,411 | $ | 718,264 | $ | 341,553 | $ | 252,694 | ||||||||||
Welfare benefit continuation | - | - | - | - | - | |||||||||||||||
Acceleration of restricted stock | ||||||||||||||||||||
awards (d) | 1,629,375 | 670,804 | 668,408 | 181,408 | 309,487 | |||||||||||||||
Total | $ | 3,240,069 | $ | 1,324,215 | $ | 1,386,672 | $ | 522,961 | $ | 562,181 | ||||||||||
Change in Control with No Termination | ||||||||||||||||||||
Annual incentive compensation | ||||||||||||||||||||
payment (a)(f) | $ | 1,610,694 | $ | 653,411 | $ | 718,264 | $ | 341,553 | $ | 252,694 | ||||||||||
Accelerated vesting of stock option and | ||||||||||||||||||||
restricted stock awards (e) | 6,993,065 | 2,660,749 | 2,540,775 | 1,228,591 | 1,227,779 | |||||||||||||||
Distribution of Performance awards (k) | 2,005,522 | 707,206 | 578,378 | 418,092 | 353,528 | |||||||||||||||
280G Gross-up payment (g) | - | - | - | - | - | |||||||||||||||
Total | $ | 10,609,281 | $ | 4,021,366 | $ | 3,837,417 | $ | 1,988,236 | $ | 1,834,001 | ||||||||||
Qualifying Termination following or in | ||||||||||||||||||||
connection with a Change in Control | ||||||||||||||||||||
Severance payment (a)(h) | $ | 7,814,082 | $ | 3,610,233 | $ | 4,179,792 | $ | 1,393,106 | $ | 1,065,388 | ||||||||||
Annual incentive compensation | ||||||||||||||||||||
payment (a)(f) | 1,610,694 | 653,411 | 718,264 | 341,553 | 252,694 | |||||||||||||||
Welfare benefit continuation and | ||||||||||||||||||||
perquisite continuation and | ||||||||||||||||||||
outplacement assistance (i) | 586,492 | 227,791 | 98,977 | 167,008 | 64,296 | |||||||||||||||
Company contribution to deferred | ||||||||||||||||||||
compensation plans (j) | 1,902,186 | 872,388 | 1,049,541 | 162,922 | 259,616 | |||||||||||||||
Accelerated vesting of stock option | ||||||||||||||||||||
and restricted stock awards (e) | 6,993,065 | 2,660,749 | 2,540,775 | 1,228,591 | 1,227,779 | |||||||||||||||
Distribution of Performance awards (k) | 2,005,522 | 707,206 | 578,378 | 418,092 | 353,528 | |||||||||||||||
280G Gross-up payment (g) | 604,953 | 1,489,507 | 808,645 | - | - | |||||||||||||||
Total | $ | 21,516,994 | $ | 10,221,285 | $ | 9,974,372 | $ | 3,711,272 | $ | 3,223,301 |
(a) | The amounts shown are based on the following base salaries as of December 31, Mr. Tucker, |
(b) | The severance payment is a lump-sum payment equal to: for Mr. McNamara, five times his base salary; for each of Messrs. Williams and O’Toole, two and a half times his base salary; and for each of Messrs. Lee and Tucker, one and a half times his base salary. |
(c) | The amounts shown consist of, for the period specified in the employment agreements of Messrs. McNamara, Williams and O’Toole, or, for Messrs. Lee and Tucker, in the Senior Executive Severance Policy, the continued provision of welfare benefits under the Company’s welfare benefit plans. With respect to these benefits, the amounts shown have been calculated based upon the current premiums paid by the Company for such benefits. |
(d) | Upon termination without cause or due to death or disability, the restricted stock awards held by each named executive officer will vest in full. Upon termination due to retirement, the restrictions will lapse as to a fraction of the restricted stock equal to the length of time, in years, from the date granted to the date of retirement over the total number of years over which the award would have vested. The value of each share of restricted stock subject to acceleration was determined by multiplying the number of such restricted shares by $149.80 (the closing price of one share of Capital Stock on December 31, |
(e) | The value of each stock option award subject to acceleration was determined by multiplying the number of stock option awards by the excess, if any, of |
(f) | The incentive payment is equal to the executive’s average annual incentive compensation for the |
(g) | The amount of the excise taxes imposed pursuant to Section 4999 of the Code was determined by multiplying by 20% the “excess parachute payment” that would arise in connection with payments made to the applicable named executive officer upon the triggering event. The excess parachute payment was determined in accordance with the provisions of Section 280G of the Code. The amount of the gross-up payment to make each named executive officer whole on an after-tax basis for the excise taxes imposed under Section 4999 of the Code was determined assuming a federal tax rate of 39.6% and |
(h) | The severance payment is equal to: for each of Messrs. McNamara, Williams and O’Toole, three times the sum of his current base salary and average annual incentive compensation for the |
(i) | The amounts shown assume that Messrs. McNamara, Williams and O’Toole elect to receive their severance benefits under the Change in Control Plan, which will result in each receiving greater benefits than he would be entitled to receive under his employment agreement. Accordingly, the amounts shown consist of, for the period specified in the Change in Control Plan, (i) the continued provision of the perquisites (if any) listed in the All Other Compensation Table at |
(j) | The amounts shown equal the amount of Company contributions that would have been made on the executive’s behalf in the Company’s qualified and non-qualified defined contribution plans had the executive continued participation in such plans, at the level in effect on December 31, |
(k) | The amounts shown are the December 31, |
Name and Address Of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class (a) |
FMR, LLC 245 Summer Street Boston, MA 02210 BlackRock, Inc. New York, NY The Vanguard Group 100 Vanguard Boulevard Malvern, PA 19355 Neuberger Berman Group LLC 605 Third Avenue New York, NY 10158 Riverbridge Partners LLC 80 South Eighth Street, Ste 1200 Minneapolis, MN 55402 |
(a) | For purposes of calculating Percent of Class, all shares of Capital Stock subject to stock option awards which were exercisable within 60 days of December 31, 2015, were assumed to have been issued. |
(b) | Sole voting power, 160 shares; sole dispositive power, 1,600,160 shares. |
(c) | Information is based on Schedule 13G filed with the SEC on February 12, 2016. |
(d) | Sole voting power 1,555,516 shares, sole dispositive power 1,594,349 shares. |
(e) | Information is based on a Schedule 13G filed with the SEC on January 26, 2016. |
(f) | Sole voting power 38,803 shares; shared voting power, 1,100 shares; sole dispositive power 1,435,621 shares; shared dispositive power, 37,557 shares. |
(g) | Information is based on a Schedule 13G filed with the SEC on February 11, 2016. |
(h) | Sole voting power, none; shared voting power, 944,436 shares; sole dispositive power, none; shared dispositive power, 944,436 shares. |
(i) | Information is based on a Schedule 13G filed with the SEC on February 9, 2016. |
(j) | Sole voting power 763,333 shares, sole dispositive power 908,933 shares. |
(k) | Information is based on a Schedule 13G filed with the SEC on February 1, 2016. |
Owner | Amount and Nature of Beneficial Ownership | ||||
Direct and Thrift Plan (a) | Options Exercisable (b) | Trusteeships and Family Holdings (c) | Total | Percent of Class (d) | |
Kevin J. McNamara | 179,913 | 178,265 | - | 358,178 | 2.03% |
Joel F. Gemunder | 20,551 | - | - | 20,551 | - |
Patrick P. Grace | 4,572 | - | - | 4,572 | - |
Thomas C. Hutton | 65,254 | 2,000 | 51,216 | 118,470 | - |
Walter L. Krebs | 10,823 | - | - | 10,823 | - |
Spencer S. Lee | 43,405 | 37,737 | - | 81,142 | - |
Andrea R. Lindell | 7,075 | - | - | 7,075 | - |
Timothy S. O'Toole | 19,089 | 1,416 | - | 20,505 | - |
Thomas P. Rice | 6,075 | - | - | 6,075 | - |
Donald E. Saunders | 10,811 | - | - | 10,811 | - |
George J Walsh III | 6,419 | - | - | 6,419 | - |
Frank E. Wood | 9,475 | - | - | 9,475 | - |
Arthur V. Tucker Jr. | 5,433 | 14,218 | - | 19,651 | - |
David P. Williams | 38,568 | 130,756 | - | 169,324 | - |
Chemed Foundation | - | - | 94,996 | 94,996 | - |
Total as a group | 427,463 | 364,392 | 146,212 | 938,067 | 5.32% |
Amount and Nature of Beneficial Ownership | |||||
Owner | Direct and Thrift Plan (a) | Options Exercisable (b) | Trusteeships and Family Holdings (c) | Total | Percent of Class (d) |
Kevin J. McNamara | 195,194 | 357,333 | - | 552,527 | 2.90% |
Joel F. Gemunder | 19,379 | - | - | 19,379 | - |
Patrick P. Grace | 5,379 | - | - | 5,379 | - |
Thomas C. Hutton | 61,809 | 18,000 | 43,216 | 123,025 | - |
Walter L. Krebs | 14,651 | - | - | 14,651 | - |
Spencer S. Lee | 66,236 | 106,666 | - | 172,902 | - |
Andrea R. Lindell | 5,903 | - | - | 5,903 | - |
Timothy S. O'Toole | 42,864 | 55,000 | - | 97,864 | - |
Thomas P. Rice | 4,903 | - | - | 4,903 | - |
Donald E. Saunders | 11,334 | - | - | 11,334 | - |
George J. Walsh III | 6,290 | - | - | 6,290 | - |
Frank E. Wood | 8,303 | - | - | 8,303 | - |
Arthur V. Tucker Jr. | 13,622 | 37,000 | - | 50,622 | - |
David P. Williams | 42,780 | 140,000 | - | 182,780 | - |
Chemed Foundation | - | - | 102,876 | 102,876 | - |
Total as a group | 498,647 | 713,999 | 146,092 | 1,358,738 | 7.10% |
(a) | Such securities include shares of Capital Stock allocated as of December 31, |
(b) | “Option” refers to shares of Capital Stock which the named person or group has a right to acquire within 60 days from December 31, |
(c) | Mr. |
(d) | Percent of Class includes Direct, Option and Trustee shares where indicated. For purposes of determining the Percent of Class, all shares of Capital Stock subject to stock option awards which were exercisable within 60 days from December 31, |
The integrity of the Company’s financial statements. |
Compliance by the Company with legal and regulatory requirements. |
The independence and performance of the Company’s internal and external auditors. |
1. | The Audit Committee has reviewed and discussed the audited financial statements and management’s report on internal control over financial reporting with the Company’s management. |
2. | The Audit Committee has discussed with the independent accountants the matters required to be discussed by SAS 61, as amended (Codification of Statements on Auditing Standard, AU 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T. |
3. | The Audit Committee has received the written disclosures and the letter from the independent accountants required by the applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountants’ communications with the Audit Committee concerning independence and has discussed with the independent accountants the independent accountants’ independence. |
4. | Based on the review and discussion referred to in paragraphs (1) through (3) above, the Audit Committee recommended to the Board of Directors that the audited financial statements be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, |
Chemed Corporation | |
Investor Relations | |
Suite 2600 | |
255 East Fifth Street | |
Cincinnati, Ohio 45202-4726 |
Naomi C. Dallob | |
Secretary |