Filed by a Party other than the Registrant ☐ Check the appropriate box:
Chemed Corporation (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box):
![]() ![]() NOTICE OF ANNUAL MEETING OF STOCKHOLDERS MAY The Annual Meeting of Stockholders of Chemed Corporation will be held at
The above matters are described in the Proxy Statement accompanying this Notice. You are urged, after reading the Proxy Statement, to vote your shares by proxy by either: (a) completing, signing, dating and returning your proxy card in the postage-paid envelope provided, or (b) voting by telephone, or (c) voting via the Internet using the instructions on your proxy card. Voting instructions are described in more detail in the Proxy Statement. Your vote is extremely important. If you have any questions or require any assistance with voting your shares, please contact the Board of Directors’ proxy solicitor: Innisfree M&A Incorporated Stockholders Toll-Free: Banks and Stockholders of record at the close of business on March
April Table of Contents
Consideration of the Following our
Management maintains a policy of soliciting feedback in connection with the Say On Pay vote and changes to the executive compensation program from a number of its largest stockholders. The Compensation Committee and the Board believe that our executive compensation program provides our executive officers with a balanced compensation package that includes a reasonable base salary along with annual and long-term incentive compensation plans that are based on the Company’s financial performance. We believe the shareholder approval in On a periodic basis, the Company’s executive compensation consultant provides the Compensation Committee with a review of executive compensation. The most recent review included base salary, annual bonus, and long-term incentives for The following chart summarizes both Chemed’s Adjusted EPS and stock price performance since 2003. 1 ![]() ![]()
2
3 ![]() ![]() PROXY STATEMENT This Proxy Statement and the accompanying proxy card are furnished in connection with the solicitation by the Board of Directors (the “Board” or the “Board of Directors”) of Chemed Corporation (the “Company” or “Chemed”) of proxies to be used at the Annual Meeting of Stockholders of the Company to be held at 11:00 a.m. Eastern Time on May 16, 2022 at The Queen City Club, 331 East Fourth Street, Cincinnati, Ohio The Board unanimously recommends that you vote FOR the election of each of the Board’s nominees named on the proxy card accompanying this Proxy Statement. Please read “How to Vote” for more information on how to vote your proxy. STOCKHOLDERS ENTITLED TO VOTE Stockholders as recorded in the Company’s stock register on March QUORUM The Company’s bylaws provide that at all meetings of stockholders, the holders of record, present in person or by proxy, of shares of Capital Stock having a majority of the voting power entitled to vote thereat, is necessary and sufficient to constitute a quorum for the transaction of business. Abstentions and shares held of record by a broker or its nominee that are voted on any matter are included in determining the number of votes present. Broker shares that are not voted on any matter at the Annual Meeting will not be included in determining whether a quorum is present. Your vote is important – we urge you to vote by proxy even if you plan to attend the Annual Meeting. 4 VOTE REQUIREMENTS
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● | 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 receive your mailed proxy card by |
● | 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 |
● | Vote at the Annual Meeting: You may request and cast a ballot in person at the Annual Meeting at the appropriate time during the meeting. |
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. |
Ron DeLyons Director since 2020 Age: 60 | Mr. DeLyons’ experience, qualifications, attributes and skills include serving as a Managing Member and Chief Executive Officer of Creekwood Energy Partners, LLC (renewable energy). He has held this position since 2004. Prior to that, Mr. DeLyons was the co-founder and Chief Executive Officer of Greystone Investment Management. In April 2021, Mr. DeLyons earned his certificate of completion for Berkeley Law’s Executive Education course on ESG matters, ESG: Navigating the Board’s role. |
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 and related services for seniors serving residents of skilled nursing, assisted living, and other healthcare facilities across the United States. He retired from these positions in August 2010, having served since May 1981 and May 2001, respectively. Omnicare is a former equity investee of the Company that became a |
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., an operating company with oversight responsibility for Grace’s $5.0 billion global supply chain. He is currently President and CEO of Grace Institute Foundation. From 1996 to 2017, 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 2017 he served as President of MLP Capital, Inc., New York, New York, an investment holding company which managed several real estate and mining interests in the southeastern United States. From 2008 to 2017 he served as Chairman of KickStart International, a global poverty alleviation organization. He also |
Christopher J. Heaney Director since 2020 Age: 68 | Mr. Heaney’s experience, qualifications, attributes and skills include previously serving as Vice President of Operations, and then President and Chief Executive Officer of Service America Systems, Inc. (home and service warranties), a former wholly-owned subsidiary of the Company (“Service America”). The Company sold Service America to an investment group led by Mr. Heaney in 2005, and Mr. Heaney served as its President and Chief Executive Officer until 2009. Prior to his roles with Service America, Mr. Heaney served as a Senior Vice President and Group Senior Vice President with Veratex Group (dental supplies), while a wholly-owned subsidiary of first Omnicare and then the Company. |
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. |
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 college. Since January 2016 she has served as Dean, having held the title of Associate Dean from January 2013 to January 2016, previously holding the title of Interim Associate Dean from August 2011, at the School of Nursing, Walden University. She is also Vice-Provost of Walden’s College of Health Sciences. Walden offers online degrees as follows: BSN, MSN, DNP. Ms. Lindell was also Associate Senior Vice President of the Medical Center at the University of Cincinnati from July 1998 until January 2011. The College of Nursing’s programs include over 1,500 students, and offer the following degrees: BSN, MSN, Post MSN, and PhD. From September 1994 to June 2002, she also held an additional position as Founder and Interim Dean of the College of Allied Health Sciences at the University of Cincinnati. She was a director of Omnicare until May 2014. |
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 of Columbia Investments LLC, Baltimore, Maryland, which invests in local emerging businesses in Baltimore and which Mr. Rice co-founded in January 1996. He was also a Director of Par Pharmaceuticals, Woodcliff Lake, |
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 having served as a Professor at the Farmer School of Business, Miami University, Oxford, Ohio. He held this position from August 2001 until his retirement in January 2015. Miami University is a public university with a student population of 16,000. He earned a doctorate in Economics, with a minor in Accounting, from Indiana University. He has taken Masters level courses in financial reporting, financial valuation, and risk management. Mr. Saunders retired as President of DuBois (a former wholly-owned subsidiary of the Company), then a division of Diversey, in October 2000, having held that position since November 1993. |
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. |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($)(b) | All Other Compensation ($) | Total ($) | Fees Earned or Paid in Cash ($) | Stock Awards Total ($)(b) | All Other Compensation ($) | Total ($) | ||||
Ron DeLyons | 95,500 | 136,318 | - | 231,818 | ||||||||
Joel F. Gemunder | 81,000 | 91,106 | - | 172,106 | 88,000 | 136,318 | - | 224,318 | ||||
Patrick P. Grace | 115,500 | 91,106 | - | 206,606 | 121,500 | 136,318 | - | 257,818 | ||||
Walter L. Krebs | 82,000 | 91,106 | - | 173,106 | ||||||||
Sandra E. Laney | 20,000 | 91,106 | - | 111,106 | ||||||||
Christopher J.Heaney | 89,000 | 136,318 | - | 225,318 | ||||||||
Sandra E. Laney (c) | 20,500 | 136,318 | - | 156,818 | ||||||||
Andrea R. Lindell | 82,000 | 91,106 | - | 173,106 | 89,000 | 136,318 | - | 225,318 | ||||
Thomas P. Rice | 89,500 | 91,106 | - | 180,606 | 95,500 | 136,318 | - | 231,818 | ||||
Donald E. Saunders | 91,500 | 91,106 | - | 182,606 | 95,000 | 136,318 | - | 231,318 | ||||
George J. Walsh III | 245,000 | 91,106 | - | 336,106 | 250,000 | 136,318 | - | 386,318 | ||||
Frank E. Wood | 82,000 | 91,106 | - | 173,106 |
(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. | |
(c) | Director Emeritus. |
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 | Chair x x | x x Chair x | x Chair x |
Number of Meetings | 7 | 4 | 1 |
Director | Audit Committee | Compensation Committee | Nominating Committee |
R. DeLyons J. F. Gemunder P. P. Grace* C. J. Heaney A. R. Lindell T. P. Rice* D. E. Saunders* G. J. Walsh III | x Chair x x | x x Chair | x Chair x |
Number of Meetings | 7 | 3 | 1 |
● | Replacement of the previous annual incentive program, which was based on a multiple of historical growth rates in Adjusted EPS applied to prior year actual payouts, with a target bonus plan based on achieving goals related to Adjusted EPS and Return on Assets; |
● | Replacement of the previous long-term incentive plan with performance share units subject to performance-based vesting related to a cumulative three-year Adjusted EPS target and a three-year relative TSR performance |
● | A policy that |
● | A clawback policy such that the Compensation Committee will review all performance-based compensation awarded to, or earned by, certain officers during the three-year period prior to any restatement of the Company’s financial results. If the Compensation Committee determines such compensation would have been lower had it been calculated based on the restated financial statement, the Compensation Committee may seek to recover the excess amount. |
● | Additionally, in 2018, the Board of Directors amended The Senior Executive Severance Policy and the Change in Control Plan to limit any gross-up payments payable under the plans to the then-existing participants in the plans. |
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ABM Industries, Inc. | National HealthCare Corp. |
Acadia Healthcare Co., Inc. | RadNet, Inc. |
Amedisys, Inc. | Rollins, Inc. |
Brookdale Senior Living, Inc. | Select Medical Holdings Corp. |
Clean Harbors, Inc. | Terminix Global Holdings, Inc. (previously |
Comfort Systems USA, Inc. | Service Master) |
Encompass Health Corp. | Stericycle, Inc. |
Hanger, Inc. | Team, Inc. |
Healthcare Services Group, Inc. | Tetra Tech, Inc. |
LHC Group, Inc. | The Ensign Group, Inc. |
MEDNAX, INC. | Tivity Health, Inc. |
Target Non Equity Incentive Compensation Percentages of Base Salary | |||
K. J. McNamara | 125% | ||
D. P. Williams | 105 | ||
N. M. Westfall | 105 | ||
S. S. Lee | 105 | ||
M. D. Witzeman | |||
75 |
2021 Actual/Target | ||||||||||||||||||
2018 Actual/Target | Adjusted | Return on | ||||||||||||||||
Adjusted E.P.S. | Return on Total Assets | E.P.S. | Total Assets | |||||||||||||||
(75%) | (25%) | (75 | %) | (25 | %) | |||||||||||||
VITAS | ||||||||||||||||||
(1) | Actual | $ | 8.55 | 26.2 | % | |||||||||||||
Target | 7.61 | 24.0 | % | Actual | $ | 11.58 | 26.5 | % | ||||||||||
Percent of Target | 112.4 | % | 109.2 | % | Target | 10.95 | 26.1 | % | ||||||||||
Target Multiplier | 189.7 | % | 122.9 | % | Percent of Target | 105.8 | % | 101.5 | % | |||||||||
(4) | Target Multiplier | 143.2 | % | 103.8 | % | |||||||||||||
Roto-Rooter | Roto-Rooter | Roto-Rooter | ||||||||||||||||
(5) | Actual | $ | 6.05 | 33.7 | % | |||||||||||||
Target | 4.96 | 28.9 | % | Actual | $ | 11.61 | 35.2 | % | ||||||||||
Percent of Target | 122.0 | % | 116.6 | % | Target | 8.67 | 28.9 | % | ||||||||||
Target Multiplier | 200.0 | % | 141.5 | % | Percent of Target | 133.9 | % | 121.8 | % | |||||||||
(8) | Target Multiplier | 200.0 | % | 154.5 | % | |||||||||||||
Chemed Consolidated | Chemed Consolidated | Chemed Consolidated | ||||||||||||||||
(9) | Actual | $ | 12.13 | 21.6 | % | Actual | $ | 20.25 | 22.3 | % | ||||||||
(10) | Target | 10.61 | 18.7 | % | Target | 17.24 | 18.6 | % | ||||||||||
(11) | Percent of Target | 114.3 | % | 115.5 | % | Percent of Target | 117.5 | % | 119.9 | % | ||||||||
(12) | Target Multiplier | 200.0 | % | 138.8 | % | Target Multiplier | 200.0 | % | 149.7 | % | ||||||||
2021 TARGET/ACTUAL NON EQUITY INCENTIVE COMPENSATION EARNED | ||||||||||||
NEO | 2021 Target Non Equity Incentive | 2021 Actual Non Equity Incentive Earned | Actual as a % of Target | |||||||||
K. J. McNamara | $ | 1,757,500 | $ | 3,293,994 | 187.4 | % | ||||||
D. P. Williams | 819,000 | 1,535,011 | 187.4 | |||||||||
N. M. Westfall | 603,750 | 805,101 | 133.4 | |||||||||
S. S. Lee | 552,038 | 1,041,281 | 188.6 | |||||||||
M. D. Witzeman | 262,875 | 492,693 | 187.4 |
NEO | 2018 Target Non Equity Incentive | 2018 Actual Non Equity Incentive Earned | Actual as a % of Target | |||||||||
K. J. McNamara | $ | 1,465,000 | $ | 2,705,855 | 184.7 | % | ||||||
D. P. Williams | 682,500 | 1,260,578 | 184.7 | |||||||||
N. M. Westfall | 517,545 | 895,353 | 173.0 | |||||||||
S. S. Lee | 462,630 | 857,600 | 185.4 | |||||||||
N. C. Dallob | 306,000 | 565,182 | 184.7 |
As Reported in | As Used for | |||||||
Charts on | NEIC | |||||||
Pages 2 and 3 | Calculation | |||||||
Net Income as Reported (000) | $ | 205,543 | $ | 205,543 | ||||
Adjustments as Outlined on Page 3 | $ | (5,170 | ) | $ | (5,170 | ) | ||
Adusted Net Income as Outlined on Page 3 | $ | 200,373 | $ | 200,373 | ||||
Additional Adjustments for Non Equity Incentive Compensation | ||||||||
Out of Pocket Acquisition Costs | $ | (559 | ) | |||||
Medicare Cap Charge - Fourth Quarter 2017 | $ | (1,321 | ) | |||||
Medicare Cap Charge - Fourth Quarter 2018 | $ | 2,217 | ||||||
Adjusted Net Income to be used for NEIC Calculations | $ | 200,710 | ||||||
Average Shares Outstanding Diluted (000) | 16,803 | |||||||
Actual Shares Outstanding for NEIC Calculation (actual as of 12/31/18) | 16,550 | |||||||
Adjusted Net Income Per Share | $ | 11.93 | $ | 12.13 |
As Reported in Charts on Pages 2 and 3 | As Used for NEIC Calculation | |||||||
Net Income as Reported (000) | $ | 268,550 | $ | 268,550 | ||||
Adjustments as Outlined on Page 3 | $ | 39,457 | $ | 39,457 | ||||
Adjusted Net Income as Outlined on Page 3 | $ | 308,007 | $ | 308,007 | ||||
Additional Adjustments for Non Equity Incentive Compensation | ||||||||
Medicare Cap Charge - Fourth Quarter 2020 | $ | (1,890 | ) | |||||
Medicare Cap Charge - Fourth Quarter 2021 | $ | 2,269 | ||||||
Adjusted Net Income to be used for NEIC Calculations | $ | 308,386 | ||||||
Average Shares Outstanding Diluted (000) | 15,938 | |||||||
Actual Shares Outstanding for NEIC Calculation (actual as of 12/31/21) | 15,226 | |||||||
Adjusted Net Income Per Share | $ | 19.33 | $ | 20.25 | ||||
3-Year Adjusted EPS CAGR | Percentage of Target Shares | 3-Year Adjusted EPS CAGR | Percentage of Target Shares | ||
Maximum | 11% | 200.0% | 11% | 200.0% | |
Target | 7% | 100.0% | 7% | 100.0% | |
Minimum | 3% | 0.0% | 3% | 0.0% | |
3-Year TSR Percentile | Percentage of Target Shares | ||||
Maximum | Greater than 90th | 200.0% | Greater than 90th | 200.0% | |
75th | 150.0% | 75th | 150.0% | ||
60th | 125.0% | 60th | 125.0% | ||
Target | 50th | 100.0% | 50th | 100.0% | |
40th | 75.0% | 40th | 75.0% | ||
25th | 50.0% | 25th | 50.0% | ||
Minimum | Less than 25th | 0.0% | Less than 25th | 0.0% |
Adjusted EPS Avg. Annual CAGR | TSR Peer Group Percentile | |||||||||||||||
Performance Period | Percent | Payout (a) | Percentile | Payout (a) | ||||||||||||
3-Year Performance Period Targets | 7.00 | % | 100.0 | % | 50th | 100.0 | % | |||||||||
January 1, 2013 - December 31, 2015 | 10.26 | 144.4 | 73rd | 149.8 | ||||||||||||
January 1, 2014 - December 31, 2016 | 8.23 | 118.0 | 91st | 204.6 | ||||||||||||
January 1, 2015 - December 31, 2017 | 11.79 | 163.0 | 90th | 203.9 | ||||||||||||
January 1, 2016 - December 31, 2018 | 20.52 | 203.3 | 70th | 144.0 |
Adjusted EPS Avg. Annual CAGR | TSR Peer Group Percentile | ||||||||||||
Performance Period | Percent | Payout(a) | Percentile | Payout(a) | |||||||||
3-Year Performance Period Targets | 7.00 | % | 100.0 | % | 50th | 100.0 | % | ||||||
January 1, 2013 - December 31, 2015 | 10.26 | 144.4 | 73rd | 149.8 | |||||||||
January 1, 2014 - December 31, 2016 | 8.23 | 118.0 | 91st | 204.6 | |||||||||
January 1, 2015 - December 31, 2017 | 11.79 | 163.0 | 90th | 203.9 | |||||||||
January 1, 2016 - December 31, 2018 | 20.52 | 203.3 | 70th | 144.0 | |||||||||
January 1, 2017 - December 31, 2019 | 24.29 | 202.5 | 79th | 165.2 | |||||||||
January 1, 2018 - December 31, 2020 | 29.06 | 202.0 | 79th | 164.8 | |||||||||
January 1, 2019 - December 31, 2021 | 18.63 | 202.0 | 63rd | 131.6 | |||||||||
(a) Payout percentages are based on payout scales at the time of grant and include reinvestment of dividends paid on Chemed shares during the performance period. |
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 | |||||||||||||||||||||||||||||
President and CEO | 2018 | $ | 1,149,908 | $ | 2,705,855 | $ | 1,676,824 | $ | 2,014,815 | $ | 22,299 | $ | 1,208,936 | $ | 8,778,637 | ||||||||||||||
2017 | 1,094,990 | 2,247,732 | 921,376 | 2,544,850 | 22,572 | 1,102,997 | 7,934,517 | ||||||||||||||||||||||
2016 | 1,047,013 | 1,737,761 | 628,213 | 2,064,792 | 22,509 | 1,041,041 | 6,541,329 | ||||||||||||||||||||||
D.P. Williams | |||||||||||||||||||||||||||||
Executive Vice | 2018 | 637,667 | 1,260,578 | 671,071 | 1,040,988 | 10,309 | 568,309 | 4,188,922 | |||||||||||||||||||||
President and CFO | 2017 | 607,000 | 1,046,736 | 368,631 | 925,400 | 10,435 | 459,800 | 3,418,002 | |||||||||||||||||||||
2016 | 580,000 | 770,525 | 224,500 | 708,351 | 10,407 | 433,935 | 2,727,718 | ||||||||||||||||||||||
N.M. Westfall (d) | |||||||||||||||||||||||||||||
Executive Vice President | 2018 | 481,275 | 895,353 | 502,877 | 906,667 | - | 282,124 | 3,068,296 | |||||||||||||||||||||
2017 | 458,750 | 619,833 | 288,736 | 906,892 | - | 203,989 | 2,478,200 | ||||||||||||||||||||||
2016 | 404,896 | 527,963 | 89,744 | 818,640 | - | 185,308 | 2,026,551 | ||||||||||||||||||||||
S.S. Lee | |||||||||||||||||||||||||||||
Executive Vice President | 2018 | 429,733 | 857,600 | 360,296 | 537,284 | 10,122 | 488,022 | 2,683,057 | |||||||||||||||||||||
2017 | 400,333 | 797,360 | 202,504 | 416,430 | 10,248 | 328,576 | 2,155,451 | ||||||||||||||||||||||
2016 | 375,000 | 632,844 | 134,756 | 309,264 | 10,219 | 325,343 | 1,787,426 | ||||||||||||||||||||||
N.C. Dallob (e) | |||||||||||||||||||||||||||||
Vice President, | 2018 | 400,333 | 565,182 | 276,625 | 483,556 | 6,104 | 238,227 | 1,970,027 | |||||||||||||||||||||
Secretary and Chief | 2017 | 380,000 | 469,580 | 153,277 | 397,922 | 6,179 | 176,946 | 1,583,904 | |||||||||||||||||||||
Legal Officer |
Non-Qualified | |||||||||||||||||||||||||||||
Non-Equity | Deferred | ||||||||||||||||||||||||||||
Name and | Incentive Plan | Stock | Option | Compensation | All Other | ||||||||||||||||||||||||
Principal | Salary | Compensation | Awards | Awards | Earnings | Compensation | Total | ||||||||||||||||||||||
Position | Year | ($) | ($) | ($)(a) | ($)(a) | ($)(b) | ($)(c) | ($) | |||||||||||||||||||||
K.J. McNamara | |||||||||||||||||||||||||||||
President and CEO | 2021 | $ | 1,383,667 | 3,293,994 | 1,893,990 | 3,566,649 | 90,263 | 1,431,059 | $ | 11,659,622 | |||||||||||||||||||
2020 | $ | 1,305,992 | 3,065,892 | 2,168,162 | 4,021,813 | 54,566 | 1,341,998 | 11,958,423 | |||||||||||||||||||||
2019 | 1,217,317 | 2,409,428 | 1,702,215 | 3,411,139 | 48,969 | 1,230,782 | 10,019,850 | ||||||||||||||||||||||
D.P. Williams | |||||||||||||||||||||||||||||
Executive Vice President and CFO | 2021 | 767,667 | 1,535,001 | 728,374 | 1,802,174 | 27,861 | 607,138 | 5,468,215 | |||||||||||||||||||||
2020 | 724,667 | 1,429,040 | 833,909 | 1,640,471 | 25,227 | 588,554 | 5,241,868 | ||||||||||||||||||||||
2019 | 675,333 | 1,122,971 | 441,431 | 1,178,677 | 22,639 | 513,826 | 3,954,877 | ||||||||||||||||||||||
N.M. Westfall | |||||||||||||||||||||||||||||
Executive Vice President | 2021 | 563,646 | 805,101 | 549,551 | 1,563,383 | - | 446,092 | 3,927,773 | |||||||||||||||||||||
2020 | 532,854 | 1,060,122 | 625,027 | 1,495,887 | - | 514,387 | 4,228,277 | ||||||||||||||||||||||
2019 | 504,042 | 980,448 | 329,451 | 1,092,813 | - | 306,731 | 3,213,485 | ||||||||||||||||||||||
S.S. Lee | |||||||||||||||||||||||||||||
Executive Vice President | 2021 | 515,833 | 1,041,281 | 335,837 | 1,172,537 | 27,358 | 524,704 | 3,617,550 | |||||||||||||||||||||
2020 | 488,667 | 965,173 | 416,145 | 977,356 | 24,771 | 444,606 | 3,316,718 | ||||||||||||||||||||||
2019 | 462,867 | 532,788 | 228,614 | 702,523 | 22,231 | 448,854 | 2,397,877 | ||||||||||||||||||||||
M. D. Witzeman | |||||||||||||||||||||||||||||
Vice President and Controller | 2021 | 344,917 | 492,693 | 303,126 | 852,437 | - | 224,109 | 2,217,282 | |||||||||||||||||||||
2020 | 325,500 | 458,510 | 341,660 | 775,407 | - | 207,134 | 2,108,211 |
K.J. McNamara | D.P. Williams | N.M. Westfall | S.S. Lee | N.C. Dallob | ||||||||||||||||
Company contribution to non-qualified | ||||||||||||||||||||
deferred compensation plans | $ | 996,464 | $ | 413,179 | $ | 203,495 | $ | 345,691 | $ | 177,284 | ||||||||||
Personal use of Company aircraft (1) | 108,505 | 50,595 | 26,063 | - | 2,759 | |||||||||||||||
Company contributions to unfunded | ||||||||||||||||||||
supplemental retirement plan | 26,356 | 12,185 | - | 11,965 | 7,215 | |||||||||||||||
Company paid club memberships | 15,760 | 37,836 | 10,356 | 70,923 | 7,080 | |||||||||||||||
All other (2) | 61,851 | 54,514 | 42,210 | 59,443 | 43,889 | |||||||||||||||
Total | $ | 1,208,936 | $ | 568,309 | $ | 282,124 | $ | 488,022 | $ | 238,227 |
K.J. | D.P. | N.M. | S.S. | M.D. | ||||||||||||||||
McNamara | Williams | Westfall | Lee | Witzeman | ||||||||||||||||
Company contribution to non-qualified | ||||||||||||||||||||
deferred compensation plans | $ | 1,121,508 | $ | 491,444 | $ | 357,859 | $ | 382,203 | $ | 163,387 | ||||||||||
Personal use of Company aircraft (1) | 116,051 | 14,263 | 9,789 | 10,775 | - | |||||||||||||||
Company paid sporting event tickets | 50,380 | 872 | 565 | - | 1,952 | |||||||||||||||
Company contributions to unfunded | ||||||||||||||||||||
supplemental retirement plan | 26,356 | 12,185 | - | 11,965 | - | |||||||||||||||
All other (2) | 116,764 | 88,374 | 77,879 | 119,761 | 58,770 | |||||||||||||||
Total | $ | 1,431,059 | $ | 607,138 | $ | 446,092 | $ | 524,704 | $ | 224,109 |
All Other | All Other | ||||||||||||||||||||
Stock Awards: | Option Awards: | ||||||||||||||||||||
Number of | Number of | Exercise | Closing | Grant | |||||||||||||||||
Shares of | Securities | or Base Price | Market Price | Date Fair | |||||||||||||||||
Stock or | Underlying | of Option | on Grant | Value of | |||||||||||||||||
Grant | Units | Options | Awards | Date | Award | ||||||||||||||||
Name | Date | (#) | (#) (a) | ($/Share) (b) | ($/Share) | ($)(c) | |||||||||||||||
K.J. McNamara | 2/19/2021 | 1,737 | - | n.a. | $ | 486.41 | $ | 1,040,532 | |||||||||||||
2/19/2021 | 1,737 | - | n.a. | 486.41 | 853,458 | ||||||||||||||||
10/28/2021 | - | 36,803 | $ | 445.35 | 447.00 | 3,566,649 | |||||||||||||||
D.P. Williams | 2/19/2021 | 668 | - | n.a. | 486.41 | 400,159 | |||||||||||||||
2/19/2021 | 668 | - | n.a. | 486.41 | 328,215 | ||||||||||||||||
10/28/2021 | - | 18,596 | $ | 445.35 | 447.00 | 1,802,174 | |||||||||||||||
N.M. Westfall | 2/19/2021 | 504 | - | n.a. | 486.41 | 301,916 | |||||||||||||||
2/19/2021 | 504 | - | n.a. | 486.41 | 247,635 | ||||||||||||||||
10/28/2021 | - | 16,132 | $ | 445.35 | 447.00 | 1,563,383 | |||||||||||||||
S.S. Lee | 2/19/2021 | 308 | - | n.a. | 486.41 | 184,504 | |||||||||||||||
2/19/2021 | 308 | - | n.a. | 486.41 | 151,333 | ||||||||||||||||
10/28/2021 | - | 12,099 | $ | 445.35 | 447.00 | 1,172,537 | |||||||||||||||
M.D. Witzeman | 2/19/2021 | 278 | - | n.a. | 486.41 | 166,533 | |||||||||||||||
2/19/2021 | 278 | - | n.a. | 486.41 | 136,593 | ||||||||||||||||
10/28/2021 | - | 8,796 | $ | 445.35 | 447.00 | 852,437 |
Name | Grant Date | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#) (a) | Exercise or Base Price of Option Awards ($/Share) (b) | Closing Market Price on Grant Date ($/Share) | Grant Date Fair Value of Award ($) (c) | |||||||||||||||
K.J. McNamara | 2/16/2018 | 1,964 | - | n.a. | $ | 254.56 | $ | 670,117 | |||||||||||||
2/16/2018 | 1,964 | - | n.a. | 254.56 | 1,006,707 | ||||||||||||||||
11/2/2018 | - | 30,000 | $ | 306.70 | 306.93 | 2,014,815 | |||||||||||||||
D.P. Williams | 2/16/2018 | 786 | - | n.a. | 254.56 | 268,183 | |||||||||||||||
2/16/2018 | 786 | - | n.a. | 254.56 | 402,888 | ||||||||||||||||
11/2/2018 | - | 15,500 | $ | 306.70 | 306.93 | 1,040,988 | |||||||||||||||
N.M. Westfall | 2/16/2018 | 589 | - | n.a. | 254.56 | 200,967 | |||||||||||||||
2/16/2018 | 589 | - | n.a. | 254.56 | 301,910 | ||||||||||||||||
11/2/2018 | - | 13,500 | $ | 306.70 | 306.93 | 906,667 | |||||||||||||||
S.S. Lee | 2/16/2018 | 422 | - | n.a. | 254.56 | 143,987 | |||||||||||||||
2/16/2018 | 422 | - | n.a. | 254.56 | 216,309 | ||||||||||||||||
11/2/2018 | - | 8,000 | $ | 306.70 | 306.93 | 537,284 | |||||||||||||||
N.C. Dallob | 2/16/2018 | 324 | - | n.a. | 254.56 | 110,549 | |||||||||||||||
2/16/2018 | 324 | - | n.a. | 254.56 | 166,076 | ||||||||||||||||
11/2/2018 | - | 7,200 | $ | 306.70 | 306.93 | 483,556 |
(c) Amounts represent the aggregate grant date fair value of the 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 Annual Report on 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 ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value Of Shares or Units of Stock That Have Not Vested (g) ($) | |||
K.J. McNamara | 30,899 | - | 70.30 | 11/8/2023 | - | - | ||
30,000 | - | 157.36 | 11/6/2020 | - | - | |||
58,033 | 30,267 | (a) | 135.85 | 11/4/2021 | - | - | ||
18,333 | 36,667 | (b) | 231.91 | 11/3/2022 | - | - | ||
- | 30,000 | (c) | 306.70 | 11/2/2023 | - | - | ||
- | - | - | n.a. | 5,530 | (d) | 1,566,538 | ||
- | - | - | n.a. | 4,314 | (e) | 1,222,070 | ||
- | - | - | n.a. | 3,928 | (f) | 1,112,724 | ||
D.P. Williams | 24,000 | - | 106.59 | 11/7/2024 | - | - | ||
8,000 | - | 157.36 | 11/6/2020 | - | - | |||
20,766 | 10,384 | (a) | 135.85 | 11/4/2021 | - | - | ||
6,666 | 13,334 | (b) | 231.91 | 11/3/2022 | - | - | ||
- | 15,500 | (c) | 306.70 | 11/2/2023 | - | - | ||
- | - | - | n.a. | 1,976 | (d) | 559,761 | ||
- | - | - | n.a. | 1,726 | (e) | 488,941 | ||
- | - | - | n.a. | 1,572 | (f) | 445,316 | ||
N.M. Westfall | 12,000 | 12,000 | (a) | 135.85 | 11/4/2021 | - | - | |
6,533 | 13,067 | (b) | 231.91 | 11/3/2022 | - | - | ||
- | 13,500 | (c) | 306.70 | 11/2/2023 | - | - | ||
- | - | - | n.a | 790 | (d) | 223,791 | ||
- | - | - | n.a. | 1,352 | (e) | 382,995 | ||
- | - | - | n.a. | 1,178 | (f) | 333,704 | ||
Option Awards | Stock Awards | ||||||||||||||||||||
Number of | Number of | Number of | Market Value | ||||||||||||||||||
Securities | Securities | Shares or Units | Of Shares | ||||||||||||||||||
Underlying | Underlying | of Stock | or Units of | ||||||||||||||||||
Unexercised | Unexercised | Option | That Have | Stock | |||||||||||||||||
Options | Options | Exercise | Option | Not | That Have Not | ||||||||||||||||
(#) | (#) | Price | Expiration | Vested | Vested (g) | ||||||||||||||||
Name | Exercisable | Unexercisable | ($) | Date | (#) | ($) | |||||||||||||||
K.J. McNamara | 30,000 | - | 306.70 | 11/2/2023 | - | - | |||||||||||||||
29,133 | 14,567 | (a) | 413.19 | 10/29/2024 | - | - | |||||||||||||||
13,741 | 27,483 | (b) | 471.74 | 10/29/2025 | - | - | |||||||||||||||
- | 36,803 | (c) | 445.35 | 10/28/2026 | - | - | |||||||||||||||
- | - | - | n.a. | 4,928 | (d) | 2,607,109 | |||||||||||||||
- | - | - | n.a. | 2,678 | (e) | 1,416,769 | |||||||||||||||
- | - | - | n.a. | 3,474 | (f) | 1,837,885 | |||||||||||||||
D.P. Williams | 24,000 | - | 106.59 | 11/7/2024 | - | - | |||||||||||||||
20,000 | - | 231.91 | 11/3/2022 | - | - | ||||||||||||||||
15,500 | - | 306.70 | 11/2/2023 | - | - | ||||||||||||||||
10,066 | 5,034 | (a) | 413.19 | 10/29/2024 | - | - | |||||||||||||||
5,605 | 11,210 | (b) | 471.74 | 10/29/2025 | - | - | |||||||||||||||
- | 18,596 | (c) | 445.35 | 10/28/2026 | - | - | |||||||||||||||
- | - | - | n.a. | 1,278 | (d) | 676,113 | |||||||||||||||
- | - | - | n.a. | 1,030 | (e) | 544,911 | |||||||||||||||
- | - | - | n.a. | 1,336 | (f) | 706,797 | |||||||||||||||
N.M. Westfall | 13,500 | - | 306.70 | 11/2/2023 | - | - | |||||||||||||||
9,333 | 4,667 | (a) | 413.19 | 10/29/2024 | - | - | |||||||||||||||
5,111 | 10,222 | (b) | 471.74 | 10/29/2025 | - | - | |||||||||||||||
- | 16,132 | (c) | 445.35 | 10/28/2026 | - | - | |||||||||||||||
- | - | - | n.a. | 954 | (d) | 504,704 | |||||||||||||||
- | - | - | n.a. | 772 | (e) | 408,419 | |||||||||||||||
- | - | - | n.a. | 1,008 | (f) | 533,272 | |||||||||||||||
S.S. Lee | 13,000 | - | 106.59 | 11/7/2024 | - | - | |||||||||||||||
8,000 | - | 306.70 | 11/2/2023 | - | - | ||||||||||||||||
6,000 | 3,000 | (a) | 413.19 | 10/29/2024 | - | - | |||||||||||||||
3,339 | 6,679 | (b) | 471.74 | 10/29/2025 | - | - | |||||||||||||||
- | 12,099 | (c) | 445.35 | 10/28/2026 | - | - | |||||||||||||||
- | - | - | n.a. | 662 | (d) | 350,224 | |||||||||||||||
- | - | - | n.a. | 514 | (e) | 271,927 | |||||||||||||||
- | - | - | n.a. | 616 | (f) | 325,889 | |||||||||||||||
M.D. Witzeman | 6,900 | - | 306.70 | 11/2/2023 | - | - | |||||||||||||||
4,666 | 2,334 | (a) | 413.19 | 10/29/2024 | - | - | |||||||||||||||
2,649 | 5,299 | (b) | 471.74 | 10/29/2025 | - | - | |||||||||||||||
- | 8,796 | (c) | 445.35 | 10/28/2026 | - | - | |||||||||||||||
- | - | - | n.a. | 538 | (e) | 284,624 | |||||||||||||||
- | - | - | n.a. | 422 | (e) | 223,255 | |||||||||||||||
- | - | - | n.a. | 556 | (f) | 294,146 |
Name | Option Awards | Stock Awards | ||||||
Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value Of Shares or Units of Stock That Have Not Vested (g) ($) | |||
S.S. Lee | 13,000 | - | 106.59 | 11/7/2024 | - | - | ||
12,500 | - | 157.36 | 11/6/2020 | - | - | |||
9,066 | 4,534 | (a) | 135.85 | 11/4/2021 | - | - | ||
3,000 | 6,000 | (b) | 231.91 | 11/3/2022 | - | - | ||
- | 8,000 | (c) | 306.70 | 11/2/2023 | - | - | ||
- | - | - | n.a. | 1,186 | (d) | 335,970 | ||
- | - | - | n.a. | 948 | (e) | 268,549 | ||
- | - | - | n.a. | 844 | (f) | 239,088 | ||
N.C. Dallob | - | 4,834 | (a) | 135.85 | 11/4/2021 | - | - | |
- | 5,734 | (b) | 231.91 | 11/3/2022 | - | - | ||
- | 7,200 | (c) | 306.70 | 11/2/2023 | - | - | ||
- | - | - | n.a. | 790 | (d) | 223,791 | ||
- | - | - | n.a. | 718 | (e) | 203,395 | ||
- | - | - | n.a. | 648 | (f) | 183,565 |
(f) Award vests upon attainment of certain return or earnings targets on or prior to December 31, 2023. (g) Amounts are based on the $529.04 closing price of the Capital Stock on December 31, 2021. |
Option Awards | Stock Awards | |||||||||||||||||||||||
Number of | Number of | |||||||||||||||||||||||
Shares | Value | Shares | Value | |||||||||||||||||||||
Acquired on | Realized on | Acquired on | Realized on | |||||||||||||||||||||
Option Awards | Stock Awards | Exercise | Exercise | Vesting | Vesting | |||||||||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | (#) | ($) | (#) | ($) | ||||||||||||||||
K.J. McNamara | 132,500 | $ | 24,577,150 | 13,752 | $ | 3,709,876 | 40,000 | $ | 10,778,540 | 7,203 | $ | 3,539,122 | ||||||||||||
D.P. Williams | 63,756 | 14,070,144 | 5,054 | 1,372,530 | 10,384 | 3,621,835 | 2,883 | 1,416,533 | ||||||||||||||||
N.M. Westfall | 30,919 | 5,617,219 | 1,799 | 499,686 | 12,073 | 3,052,146 | 2,161 | 1,061,786 | ||||||||||||||||
S.S. Lee | - | - | 3,100 | 846,018 | 9,000 | 2,412,990 | 1,547 | 760,103 | ||||||||||||||||
N.C. Dallob | 11,732 | 1,685,889 | 2,021 | 548,858 | ||||||||||||||||||||
M.D. Witzeman | - | - | 1,082 | 531,630 |
Executive | Registrant | Aggregate | Aggregate | ||||||||||||||||||||||||||
Contributions | Contributions | Earnings | Balance | ||||||||||||||||||||||||||
in Last FY | in Last FY | in Last FY | at Last FYE | ||||||||||||||||||||||||||
Name | Executive Contributions in Last FY ($) | Registrant Contributions in Last FY ($)(a)(b) | Aggregate Earnings in Last FY ($) | Aggregate Balance at Last FYE ($)(b) | ($) | ($)(a)(b) | ($) | ($)(b) | |||||||||||||||||||||
K.J. McNamara | |||||||||||||||||||||||||||||
Excess Benefit Plan | $ | - | $ | 989,039 | $ | 378,169 | $ | 22,079,548 | $ | - | $ | 1,121,508 | $ | 1,067,408 | $ | 37,908,377 | |||||||||||||
Supplemental Pension and Life Insurance Plan | - | 26,356 | 44,116 | 663,327 | - | 26,356 | 90,263 | 936,193 | |||||||||||||||||||||
D.P. Williams | |||||||||||||||||||||||||||||
Excess Benefit Plan | 316,290 | 405,754 | (433,752 | ) | 6,595,952 | 773,414 | 491,444 | 104,620 | 9,631,589 | ||||||||||||||||||||
Supplemental Pension and Life Insurance Plan | - | 12,185 | 20,396 | 306,673 | - | 12,185 | 27,861 | 418,955 | |||||||||||||||||||||
N.M. Westfall | |||||||||||||||||||||||||||||
Excess Benefit Plan | - | 196,070 | (36,439 | ) | 752,333 | - | 357,859 | 340,785 | 2,541,314 | ||||||||||||||||||||
Supplemental Pension and Life Insurance Plan | - | - | - | - | - | - | |||||||||||||||||||||||
S.S. Lee | |||||||||||||||||||||||||||||
Roto-Rooter Deferred Compensation Plan | 100,099 | 345,691 | (426,199 | ) | 5,755,187 | - | 382,203 | 1,042,987 | 12,459,722 | ||||||||||||||||||||
Supplemental Pension and Life Insurance Plan | - | 11,965 | 20,027 | 301,137 | - | 11,965 | 27,358 | 411,392 | |||||||||||||||||||||
N.C. Dallob | |||||||||||||||||||||||||||||
M.D. Witzeman | |||||||||||||||||||||||||||||
Excess Benefit Plan | - | 169,859 | 205,161 | 3,828,498 | - | 163,387 | 200,479 | 2,026,337 | |||||||||||||||||||||
Supplemental Pension and Life Insurance Plan | - | 7,215 | 12,075 | 181,577 | - | - | - | - |
Name of Fund | Rate of Return | Name of Fund | Rate of Return | ||||||
American Europacific Growth Fund | 2.80 | % | Merrill Lynch Conservative Model Portfolio | 2.63 | % | ||||
American Washington | 28.90 | % | Merrill Lynch Moderate Model Portfolio | 11.06 | % | ||||
Chemed Corporation Common Stock | -0.38 | % | Merrill Lynch Moderate/Aggressive Model Portfolio | 14.77 | % | ||||
Columbia Midcap Index Fund | 24.44 | % | Merrill Lynch Moderate/Conservative Model Portfolio | 6.55 | % | ||||
Dodge and Cox Income | -0.91 | % | MFS International Divs Fund R6 | 7.78 | % | ||||
Hartford Mid Cap Fund | 9.90 | % | Pimco Low Duration Fund | -0.68 | % | ||||
Invesco Oppenheimer Global | 15.63 | % | Pimco Real Return Bond Fund | 5.59 | % | ||||
Invesco Real Estate Fund | 41.49 | % | PGIM Global Total Return | -5.73 | % | ||||
Ishares S&P 500 Index | 28.65 | % | Supplemental Pension and Life | 7.00 | % | ||||
Lord Abbett Developing Growth Fund | -2.41 | % | Vanguard Small Cap Fund | 28.09 | % | ||||
Mainstay Large Cap Growth Fund | 24.81 | % | Vanguard Federal Money Market | 0.01 | % | ||||
Merrill Lynch Aggressive Model Portfolio | 18.91 | % | Victory Sycamore Fund | 31.91 | % |
Name of Fund | Rate of Return | Name of Fund | Rate of Return |
American Europacific Growth Fund | -14.95% | Merrill Lynch Moderate Model Portfolio | -6.12% |
Chemed Corporation Common Stock | 17.01% | Merrill Lynch Moderate/Aggressive Model Portfolio | -7.84% |
Columbia Midcap Index Fund | -11.33% | Merrill Lynch Moderate/Conservative Model Portfolio | -3.91% |
Dodge and Cox Income | -0.31% | MFS International Divs Fund R6 | -10.92% |
Hartford Mid Cap Fund | -7.32% | Oppenheimer Global Fund | -13.36% |
Invesco Growth and Income Fund | -13.24% | Pimco Low Duration Fund | 0.51% |
Invesco Real Estate Fund | -5.28% | Pimco Real Return Bond Fund | -1.98% |
Ishares S&P 500 Index | -4.38% | Templeton Global Bond Fund | 1.44% |
Lord Abbett Developing Growth Fund | 5.37% | Supplemental Pension and Life | 7.00% |
Mainstay Large Cap Growth Fund | 3.74% | Vanguard Small Cap Fund | -12.23% |
Merrill Lynch Aggressive Model Portfolio | -9.92% | Vanguard Federal Money Market | 1.78% |
Merrill Lynch Conservative Model Portfolio | -1.35% | Victory Sycamore Fund | -9.96% |
CHEMED CORPORATION | ||||||||||||||||||||
SUMMARY OF PAYOUTS UNDER CONTRACT/SEVERANCE/CONTROL AGREEMENTS | ||||||||||||||||||||
AS OF DECEMBER 31, 2021 | ||||||||||||||||||||
K.J. | D.P. | N.M. | S.S. | M.D. | ||||||||||||||||
McNamara | Williams | Westfall | Lee | Witzeman | ||||||||||||||||
Termination Without Cause | ||||||||||||||||||||
Severance payment (a) | $ | 7,030,000 | $ | 1,950,000 | $ | 862,500 | $ | 788,625 | $ | 525,750 | ||||||||||
Pro-rated annual incentive | ||||||||||||||||||||
compensation (b) | 2,727,058 | 1,270,863 | 978,641 | 785,187 | 407,753 | |||||||||||||||
Welfare benefit continuation (c) | 29,588 | 37,484 | 25,394 | 27,027 | 10,676 | |||||||||||||||
Total | $ | 9,786,646 | $ | 3,258,347 | $ | 1,866,535 | $ | 1,600,839 | $ | 944,179 | ||||||||||
Involuntary Termination for Cause or | ||||||||||||||||||||
Voluntary Termination | ||||||||||||||||||||
Severance payment | - | - | - | - | - | |||||||||||||||
Welfare benefit continuation | - | - | - | - | - | |||||||||||||||
Total | - | - | - | - | - | |||||||||||||||
Termination due to Death or Disability | ||||||||||||||||||||
Pro-rated annual incentive | ||||||||||||||||||||
compensation (b) | $ | 2,727,058 | $ | 1,270,863 | $ | 978,641 | $ | 785,187 | $ | 407,753 | ||||||||||
Welfare benefit continuation | - | - | - | - | - | |||||||||||||||
Total | $ | 2,727,058 | $ | 1,270,863 | $ | 978,641 | $ | 785,187 | $ | 407,753 | ||||||||||
Termination due to Retirement | ||||||||||||||||||||
Pro-rated annual incentive | ||||||||||||||||||||
compensation (b) | $ | 2,727,058 | $ | 1,270,863 | $ | 978,641 | $ | 785,187 | $ | 407,753 | ||||||||||
Welfare benefit continuation | - | - | - | - | - | |||||||||||||||
Total | $ | 2,727,058 | $ | 1,270,863 | $ | 978,641 | $ | 785,187 | $ | 407,753 | ||||||||||
Change in Control with No Termination | ||||||||||||||||||||
Annual incentive compensation | ||||||||||||||||||||
payment (b) | $ | 2,727,058 | $ | 1,270,863 | $ | 978,641 | $ | 785,187 | $ | 407,753 | ||||||||||
Distribution of Performance awards (i) | 3,254,654 | 1,251,709 | 941,691 | 597,815 | 517,401 | |||||||||||||||
280G Gross-up payment (e) | - | - | - | - | - | |||||||||||||||
Total | $ | 5,981,712 | $ | 2,522,572 | $ | 1,920,332 | $ | 1,383,002 | $ | 925,154 | ||||||||||
Qualifying Termination following or in | ||||||||||||||||||||
connection with a Change in Control | ||||||||||||||||||||
Severance payment (f) | $ | 12,399,174 | $ | 6,152,589 | $ | 3,107,282 | $ | 2,621,874 | $ | 1,516,506 | ||||||||||
Annual incentive compensation | ||||||||||||||||||||
payment (b) | 2,727,058 | 1,270,863 | 978,641 | 785,187 | 407,753 | |||||||||||||||
Welfare benefit continuation and | ||||||||||||||||||||
perquisite continuation and | ||||||||||||||||||||
outplacement assistance (g) | 821,512 | 308,509 | 183,454 | 259,626 | 111,582 | |||||||||||||||
Company contribution to deferred | ||||||||||||||||||||
compensation plans (h) | 3,508,842 | 1,576,137 | 759,218 | 830,792 | 370,274 | |||||||||||||||
Accelerated vesting of stock options (d) | 8,817,352 | 3,686,060 | 3,310,012 | 2,281,696 | 1,732,229 | |||||||||||||||
Distribution of performance awards (i) | 3,254,654 | 1,251,709 | 941,691 | 597,815 | 517,401 | |||||||||||||||
280G Gross-up payment (e) | - | - | - | - | - | |||||||||||||||
Total | $ | 31,528,592 | $ | 14,245,867 | $ | 9,280,298 | $ | 7,376,990 | $ | 4,655,745 |
K.J. McNamara | D.P. Williams | N.M. Westfall | S.S. Lee | N.C. Dallob | ||||||||||||||||
Termination Without Cause | ||||||||||||||||||||
Severance payment (a) | $ | 5,860,000 | $ | 1,625,000 | $ | 739,350 | $ | 660,900 | $ | 612,000 | ||||||||||
Pro-rated annual incentive | ||||||||||||||||||||
compensation (b) | 1,965,797 | 887,858 | 556,228 | 690,178 | 375,364 | |||||||||||||||
Welfare benefit continuation (c) | 27,998 | 34,061 | 21,748 | 20,005 | 20,110 | |||||||||||||||
Total | $ | 7,853,795 | $ | 2,546,919 | $ | 1,317,326 | $ | 1,371,083 | $ | 1,007,474 | ||||||||||
Involuntary Termination for Cause or | ||||||||||||||||||||
Voluntary Termination | ||||||||||||||||||||
Severance payment | - | - | - | - | - | |||||||||||||||
Welfare benefit continuation | - | - | - | - | - | |||||||||||||||
Total | - | - | - | - | - | |||||||||||||||
Termination due to Death or Disability | ||||||||||||||||||||
Pro-rated annual incentive | ||||||||||||||||||||
compensation (b) | $ | 1,965,797 | $ | 887,858 | $ | 556,228 | $ | 690,178 | $ | 375,364 | ||||||||||
Welfare benefit continuation | - | - | - | - | - | |||||||||||||||
Total | $ | 1,965,797 | $ | 887,858 | $ | 556,228 | $ | 690,178 | $ | 375,364 | ||||||||||
Termination due to Retirement | ||||||||||||||||||||
Pro-rated annual incentive | ||||||||||||||||||||
compensation (b) | $ | 1,965,797 | $ | 887,858 | $ | 556,228 | $ | 690,178 | $ | 375,364 | ||||||||||
Welfare benefit continuation | - | - | - | - | - | |||||||||||||||
Total | $ | 1,965,797 | $ | 887,858 | $ | 556,228 | $ | 690,178 | $ | 375,364 | ||||||||||
Change in Control with No Termination | ||||||||||||||||||||
Annual incentive compensation | ||||||||||||||||||||
payment (b) | $ | 1,965,797 | $ | 887,858 | $ | 556,228 | $ | 690,178 | $ | 375,364 | ||||||||||
Accelerated vesting of stock option and | ||||||||||||||||||||
restricted stock awards | - | - | - | - | - | |||||||||||||||
Distribution of Performance awards (i) | 1,723,759 | 689,787 | 525,201 | 373,363 | 285,263 | |||||||||||||||
280G Gross-up payment (e) | - | - | - | - | - | |||||||||||||||
Total | $ | 3,689,556 | $ | 1,577,645 | $ | 1,081,429 | $ | 1,063,541 | $ | 660,627 | ||||||||||
Qualifying Termination following or in | ||||||||||||||||||||
connection with a Change in Control | ||||||||||||||||||||
Severance payment (f) | $ | 9,413,391 | $ | 4,613,574 | $ | 2,098,256 | $ | 2,261,556 | $ | 1,566,728 | ||||||||||
Annual incentive compensation | ||||||||||||||||||||
payment (b) | 1,965,797 | 887,858 | 556,228 | 690,178 | 375,364 | |||||||||||||||
Welfare benefit continuation and | ||||||||||||||||||||
perquisite continuation and | ||||||||||||||||||||
outplacement assistance (g) | 599,794 | 452,509 | 164,858 | 283,004 | 115,346 | |||||||||||||||
Company contribution to deferred | ||||||||||||||||||||
compensation plans (h) | 3,130,335 | 1,337,967 | 448,240 | 771,412 | 410,248 | |||||||||||||||
Accelerated vesting of stock option | ||||||||||||||||||||
awards (d) | 6,345,848 | 2,215,881 | 2,440,412 | 976,668 | 1,007,233 | |||||||||||||||
Distribution of performance awards (i) | 1,723,759 | 689,787 | 525,201 | 373,363 | 285,263 | |||||||||||||||
280G Gross-up payment (e) | - | - | 1,788,706 | - | - | |||||||||||||||
Total | $ | 23,178,924 | $ | 10,197,576 | $ | 8,021,901 | $ | 5,356,181 | $ | 3,760,182 |
(a) | The amounts shown are based on the following base salaries as of December 31, |
(b) | The pro-rated annual incentive compensation is based on the average of the prior three years annual incentive compensation |
(c) | The amounts shown consist of, for the period specified in the employment agreements of Messrs. McNamara and Williams, or, for Messrs. Lee, Westfall and |
(d) | 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 |
(e) | 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 37% and 5.0% state tax rate for each named executive |
(f) | The severance payment is equal to: for each of Messrs. McNamara and Williams, three times the sum of his current base salary and average annual incentive compensation for the |
(g) | The amounts shown assume that Messrs. McNamara and Williams 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 |
(h) | 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, |
(i) | The amounts shown are the December 31, |
(j) | Payouts for performance share units are forfeited in the event of a termination other than for death, disability, or retirement other than in connection with a change in control. In the case of a termination for death, disability, or retirement, the event does not change any of the original payment terms of the awards. |
a. | Salary or hourly pay, as applicable |
b. | Overtime or premium pay, if applicable |
c. | Bonuses and commissions, if applicable |
d. | Company contributions to 401K plans, and |
e. | Company cost of term life insurance |
Name and Address Of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class (a) |
The Vanguard Group 100 Vanguard Boulevard Malvern, PA 19355 BlackRock, Inc. 55 E. 52nd Street New York, NY 10055 |
(a) For purposes of calculating Percent of Class, all shares of Capital Stock subject to stock option awards which | |
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 | 122,550 | 107,265 | - | 229,815 | 1.39% |
Naomi C. Dallob | 3,645 | - | - | 3,645 | - |
Joel F. Gemunder | 21,699 | - | - | 21,699 | - |
Patrick P. Grace | 4,520 | - | - | 4,520 | - |
Thomas C. Hutton | 40,326 | 10,100 | 49,216 | 99,642 | - |
Walter L. Krebs | 11,971 | - | - | 11,971 | - |
Spencer S. Lee | 30,504 | 25,066 | - | 55,570 | - |
Andrea R. Lindell | 7,240 | - | - | 7,240 | - |
Thomas P. Rice | 7,223 | - | - | 7,223 | - |
Donald E. Saunders | 8,251 | - | - | 8,251 | - |
George J Walsh III | 8,716 | - | - | 8,716 | - |
Nicholas M. Westfall | 4,052 | 18,533 | - | 22,585 | - |
Frank E. Wood | 10,623 | - | - | 10,623 | - |
David P. Williams | 24,918 | 59,432 | - | 84,350 | - |
Chemed Foundation | - | - | 80,996 | 80,996 | - |
Total as a group | 306,238 | 220,396 | 130,212 | 656,846 | 3.96% |
Amount and Nature of Beneficial Ownership | ||||||||||||||||||||
Trusteeships | ||||||||||||||||||||
Direct and | Options | and Family | Percent of | |||||||||||||||||
Owner | Thrift Plan (a) | Exercisable (b) | Holdings (c ) | Total | Class (d) | |||||||||||||||
Kevin J. McNamara | 129,507 | 72,874 | - | 202,381 | 1.31 | % | ||||||||||||||
Ron DeLyons | 549 | - | - | 549 | - | |||||||||||||||
Joel F. Gemunder | 22,505 | - | - | 22,505 | - | |||||||||||||||
Patrick P. Grace | 3,270 | - | - | 3,270 | - | |||||||||||||||
Christopher J. Heaney | 1,272 | - | - | 1,272 | - | |||||||||||||||
Thomas C. Hutton | 40,859 | 3,938 | 45,216 | 90,013 | - | |||||||||||||||
Brian Judkins | 62 | 5,927 | - | 5,989 | - | |||||||||||||||
Spencer S. Lee | 25,182 | 30,339 | - | 55,521 | - | |||||||||||||||
Andrea R. Lindell | 5,716 | - | - | 5,716 | - | |||||||||||||||
Thomas P. Rice | 5,188 | - | - | 5,188 | - | |||||||||||||||
Donald E. Saunders | 5,696 | - | - | 5,696 | - | |||||||||||||||
George J Walsh III | 2,802 | - | - | 2,802 | - | |||||||||||||||
Nicholas M. Westfall | 7,478 | 27,944 | - | 35,422 | - | |||||||||||||||
David P. Williams | 27,530 | 75,171 | - | 102,701 | - | |||||||||||||||
Michael D. Witzeman | 1,855 | 14,215 | - | 16,070 | - | |||||||||||||||
Chemed Foundation | - | - | 70,611 | 70,611 | - | |||||||||||||||
Total as a group | 279,471 | 230,408 | 115,827 | 625,706 | 4.03 | % |
(c) | Mr. Hutton is a trustee of several trusts and private foundations which hold in the aggregate, 49,216 shares of Capital Stock over which the trustee has shared voting and investment power. Messrs. McNamara and Hutton and Ms. Laney are trustees of the Chemed Foundation, which holds |
(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, |
Plan Administrator | The Compensation Committee |
Award Types | Non-qualified stock options, restricted stock, performance share units, or other types of stock-based awards, or any combination of these, as the Committee may determine |
Effective Date | May 16, 2022 (subject to stockholder approval) |
Term | Ten years (subject to earlier termination by the Board) |
Eligible for Awards | All employees of the Company or its subsidiaries who, in the opinion of the Committee, can contribute significantly to the growth and successful operations of the Company or a subsidiary. Non-employee directors and officers of the Company and its subsidiaries are also eligible for awards |
Future Benefits Not Presently Determinable | Awards may be granted by the Committee in its discretion and, therefore, future benefits to be allocated to any individual or group of individuals under the 2022 Stock Incentive Plan are not presently determinable |
✔ | 3-year vesting applicable to time-based awards; all but 50,000 shares will not vest in less than one year |
✔ | limited number of shares authorized |
✔ | double-trigger change of control vesting of awards – if awards are assumed or replaced with substantially equivalent awards, they will not automatically vest and pay out solely as a result of a change of control |
✔ | no discounted stock options or rights |
✔ | no re-pricing of stock options or rights |
✔ | no provision for an underwater cash buy-out |
✔ | no payment of dividends on unvested performance shares |
Plan Category | 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 Under Equity Compensation Plans (Excluding Securities Reflected in First Column) |
Equity Compensation Plans Approved by Stockholders: 2018 Stock Incentive Plan 2015 Stock Incentive Plan 2010 Stock Incentive Plan Total (a)(b) | 697,884 337,767 118,386 1,154,037 | $ 452.57 332.97 207.87 $ 392.46 | 525,797 9,704 - 535,501 |
Options Granted | Full-Value Shares Granted(a) | Total Granted | Weighted Average Number of Capital Shares Outstanding | Burn Rate(b) | |
2021 | 326,806 | 14,984 | 341,790 | 15,671,000 | 2.18% |
2020 | 298,670 | 12,823 | 311,493 | 15,955,000 | 1.95% |
2019 | 287,010 | 16,371 | 303,381 | 15,969,000 | 1.90% |
3-year average burn rate | 2.01% |
Total Equity Based Awards Outstanding | + | Shares Available for Future Issuance | ÷ | Total Number of Issued and Outstanding Shares of Capital Stock | + | Total Equity Based Awards Outstanding | + | Shares Available for Future Issuance | = | Overhang |
1,189,871 | 535,501 | 14,912,532 | 1,189,871 | 535,501 | 10.4% |
● | 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 |
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, |
Innisfree M&A Incorporated Stockholders Toll-Free: (877) 800-5194 Banks and Brokers: (212) 750-5833 |
—or— |
You may write to us at: |
Chemed Corporation Investor Relations Suite 2600 255 East Fifth Street Cincinnati, Ohio 45202-4726 |
Brian C. Secretary |