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Tuesday, March |
180 North Stetson Avenue, Two Prudential Plaza, Suite 1630, Chicago, Illinois 60601. |
(1) | To elect ten members to the Board of Directors to serve one-year terms expiring at the |
(2) | To consider and vote on a non-binding proposal to approve, on an advisory basis, the compensation of Hill-Rom’s named executive officers; |
(3) | To ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm of Hill-Rom for fiscal year |
(4) | To transact any other items of business that may properly be brought before the meeting and any postponement or adjournment thereof. |
Only stockholders of record as of the close of business on January |
By Order of the Board of Directors | ||
Deborah M. Rasin | ||
Secretary |
EXECUTIVE SUMMARY | 1 |
GENERAL INFORMATION ABOUT THE MEETING AND VOTING | |
PROPOSALS REQUIRING YOUR VOTE | |
Proposal No. 1 – Election of Directors | |
Proposal No. 2 – Non-Binding Vote on Executive Compensation | |
Proposal No. 3 – Ratification of the Appointment of the Independent Registered Public Accounting Firm | |
CORPORATE GOVERNANCE | |
AUDIT COMMITTEE REPORT | 20 |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 22 |
COMPENSATION DISCUSSION AND ANALYSIS | 24 |
Compensation and Management Development Committee Report | 24 |
Detailed Table of Contents for CD&A | 24 |
SUMMARY COMPENSATION | 39 |
DIRECTOR COMPENSATION | |
EQUITY COMPENSATION PLAN INFORMATION | |
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE | 51 |
APPENDIX A – RECONCILIATION OF NON-GAAP AND GAAP FINANCIAL MEASURES | 52 |
Proxy Statement |
Executive Summary |
· | Increased reported revenue by |
· | Increased reported operating margin by 130 basis points to 10.0% and adjusted operating margin by |
· | Grew |
· | Achieved a total stockholder return (“TSR”) of |
· |
· |
· | Optimized our product portfolio with the divestiture of |
· | Introduced innovative products and service solutions to drive accelerated future growth, such as: |
- | Centrella™ Smart+ bed, which transforms care by providing increased patient safety, satisfaction and caregiver efficiency. With the recent Centrella launch, the Company is introducing new features to elevate the patient experience and provide caregivers with an unprecedented level of information that enhances patient care. Centrella is designed with a scalable platform for easy frame and surface upgrades, and includes integration of advanced patient safety applications such as the Hill-Rom® NaviCare® Patient Safety® System. |
- | Hill-Rom® Envella™ Air Fluidized Therapy Bed, the Company's latest innovative solution providing the highest quality wound care for patients with advanced wounds; and the Hill-Rom® 900 Accella™ bed system, for higher acuity patients in intensive and acute care settings outside the United States. |
- | Welch Allyn Home™ Hypertension program, allowing patients to monitor their health outside the physician office using the clinically trusted Welch Allyn Home Blood Pressure Monitor. The company recently announced that the Welch Allyn Home™ 1700 Series Blood Pressure Monitor with SureBP® technology and Welch Allyn Home™ Weight Scale will now be offered as standard peripherals with Honeywell Life Care Solution’s Genesis Touch® remote patient monitoring kits. In June, the blood pressure monitor was officially launched on Amazon, a first step in tapping the large and growing retail market. |
- | TruSystem™ 3000 Mobile Operating Table, providing a cost-effective, reliable and flexible operating table in most countries in Europe, Latin America, the Middle East, Africa and Asia; and TruSystem™ 7500 MR Neuro Surgical Table, specifically engineered for the MRI environment, which integrates with the IMRIS Head Fixation portfolio, and is segmented for optimal patient positioning. |
Proposal | Recommendation of the Board | Page References | ||
To elect ten (10) members to the Board of Directors, each for | FOR all nominees | |||
To approve, on an advisory basis, the compensation of Hill-Rom’s named executive officers | FOR the proposal | |||
To ratify the appointment of PricewaterhouseCoopers LLP as Hill-Rom’s independent registered public accounting firm for fiscal year | 2018 | FOR ratification of the appointment |
Governance Practice | Description | For More Information | ||
Director Independence | All of our directors, except our CEO, are independent | |||
Non-Executive Chairman | We have a non-executive, independent Board chair | |||
Director Attendance | ||||
Annual Director Election/ Resignation Policy | Our directors are elected annually, and we have a resignation policy if a director fails to garner a majority of votes cast | |||
Executive Session | Our independent directors meet regularly in executive session | |||
Independent Compensation Consultant | We have a fully independent compensation consultant | 26 |
· |
· | provide an annual cash incentive award based on meaningful company performance metrics such as revenue, |
· | align long-term equity compensation with our shareholders’ interests by linking realizable pay with stock performance through a combination of performance stock units (50% of the award), restricted stock units (25% of the award), and stock |
Component of Compensation | Form of Compensation | For More Information | ||
Base Salary | Annual Cash Salary | |||
Annual Cash | Incentives | 162(m) qualified plan | ||
Long-Term Incentive Compensation | Performance Stock Units (50% of annual grant value) Restricted Stock Units (25% of annual grant value) Stock Options (25% of annual grant value) |
Executive Compensation Principle | Description | For More Information | |
Stock Ownership | We require significant stock ownership by all of our senior executive officers, including 6X base salary for our CEO | 36 | |
Clawback, Anti-Hedging and Anti- Pledging | Policies | We have clawback, anti-hedging and anti-pledging policies | 37 |
No Single-Trigger Change in Control Agreements | We | ||
At-Will Employment Agreements | Our executives all have at-will employment agreements | 38 | |
No Re-Pricing of Stock Options; No Buy-Back of Equity Grants | We | 37 | |
No Gross-Ups for 280G Excise Taxes Related to Change in Control Agreements | We | 38 |
General Information About the Meeting and Voting |
1. | Who may vote? |
2. | How can I elect to receive my proxy materials electronically? |
3. | Can I vote my shares by filling out and returning the Notice Regarding the Availability of Proxy Materials? |
4. | How can I access the proxy materials over the internet? |
5. | How does the Board recommend that I vote? |
· | FOR each of the nominees for director; |
· | FOR the non-binding approval of the compensation of Hill-Rom’s NEOs; and |
· | FOR the ratification of the appointment of PricewaterhouseCoopers LLP as Hill-Rom’s independent registered public accounting firm. |
6. | How do I vote? |
· | By Telephone or Internet — You may submit your proxy vote by following the instructions provided in the Notice Regarding the Availability of Proxy Materials, or by following the instructions provided with your proxy materials and on your proxy card or voting instruction form. |
· | By Mail — You may submit your proxy vote by mail by signing a proxy card and mailing it in the enclosed envelope if your shares are registered directly in your name or, for shares held beneficially in street name, by following the voting instructions provided by your broker, trustee or nominee. |
· | In Person at the |
7. | If I voted by telephone or internet and received a proxy card in the mail, do I need to return my proxy card? |
8. | Can I change my vote? |
· | voting at a later time by telephone or internet (up to 11:59 p.m. Eastern time on the day before the meeting), |
· | writing our Corporate Secretary at: Hill-Rom Holdings, Inc., |
· | giving notice of revocation to the Inspector of Election at the |
9. | What happens if I do not specify a choice for a proposal when returning a proxy? |
10. | How are votes, including broker non-votes and abstentions, counted? |
11. | What constitutes a quorum? |
12. | What happens if other matters come up at the |
13. | Who will count the votes? |
14. | Who can attend the |
· | Valid government-issued personal identification (such as a driver’s license or passport), and |
· | Proof that you owned shares of Hill-Rom common stock |
· | The validly executed proxy naming you as the proxy holder, signed by a shareholder of Hill-Rom who owned shares of Hill-Rom common stock |
· | Valid government-issued personal identification (such as a driver’s license or passport), and |
· | Proof of the shareholder’s ownership of shares of Hill-Rom common stock |
15. | How many votes must each proposal receive to be adopted? |
16. | Who pays for the proxy solicitation related to the |
17. | If I want to submit a shareholder proposal for the |
18. | How can I obtain a copy of the Annual Report on Form 10-K? |
19. | Where can I find the voting results of the |
Proposals Requiring Your Vote |
Name | Age | Principal Occupation | Director Since | Age | Principal Occupation | Director Since | |||
Rolf A. Classon | 71 | Chairman of the Board Hill-Rom | 2002 | ||||||
William G. Dempsey | 66 | Member of the Board Hill-Rom* | 2014 | ||||||
John J. Greisch | 61 | President and Chief Executive Officer Hill-Rom | 2010 | 62 | President and Chief Executive Officer Hill-Rom | 2010 | |||
William G. Dempsey | 65 | Retired Executive Vice President, Global Pharmaceuticals, Abbott Laboratories | 2014 | ||||||
Gary L. Ellis | 61 | Retired Chief Financial Officer Medtronic plc | 2017 | ||||||
Stacy Enxing Seng | 52 | Retired President Vascular Therapies Covidien | 2015 | 53 | Retired President Vascular Therapies Covidien | 2015 | |||
Mary Garrett* | 58 | Retired Vice President of Global Marketing of IBM | N/A | ||||||
Mary Garrett | 59 | Retired Vice President of Global Marketing IBM | 2017 | ||||||
James R. Giertz | 59 | Executive Vice President, Strategy H.B. Fuller Company | 2009 | 60 | Retired Senior Vice President and Chief Financial Officer H.B. Fuller Company | 2009 | |||
Charles E. Golden | 70 | Retired Executive Vice President and Chief Financial Officer Eli Lilly and Company | 2002 | 71 | Retired Executive Vice President and Chief Financial Officer Eli Lilly and Company | 2002 | |||
William H. Kucheman | 67 | Retired Interim Chief Executive Officer Boston Scientific Corp. | 2013 | 68 | Retired Interim Chief Executive Officer Boston Scientific Corp. | 2013 | |||
Ronald A. Malone | 62 | Retired Chief Executive Officer Gentiva Health Services, Inc. | 2007 | 63 | Retired Chairman Gentiva Health Services, Inc. | 2007 | |||
Nancy M. Schlichting* | 62 | Retired Chief Executive Officer Henry Ford Health System | N/A | ||||||
Nancy M. Schlichting | 63 | Retired Chief Executive Officer Henry Ford Health System | 2017 |
2015 | 2016 | 2016 | 2017 | |||||
Audit Fees (1) | $3,618,840 | $4,138,800 | $4,138,800 | $3,814,000 | ||||
Audit-Related Fees | $6,100 | $ 0 | $ 0 | $ 0 | ||||
Tax Fees | $688,268 | $639,000 | $639,000 | $111,700 | ||||
All Other Fees | $122,000 | $32,000 | $32,000 | $2,000 | ||||
Total | $4,435,208 | $4,809,800 | $4,809,800 | $3,927,700 |
Audit Fees were billed by PwC for professional services rendered for the integrated audit of our consolidated financial statements and our internal control over financial reporting, along with the review and audit of the application of new accounting pronouncements, SEC releases, acquisition accounting, statutory audits of foreign entities, and accounting for unusual transactions. |
Tax Fees were billed by PwC for professional services rendered for tax compliance, tax advice and tax planning. |
All Other Fees were fees billed by PwC for all other products and services provided to us. |
Corporate Governance |
Director | Audit Committee | Nominating/ Corporate Governance Committee | Compensation and Management Development Committee | Mergers and Acquisitions Committee | Audit Committee | Nominating/ Corporate Governance Committee | Compensation and Management Development Committee | Mergers and Acquisitions Committee | ||||
Rolf A. Classon (Board Chair) (I) | C | C | ||||||||||
Rolf A. Classon (Board Chair)* (I) | C | C | ||||||||||
John J. Greisch | ✓ | |||||||||||
William G. Dempsey (I) | ✓ | |||||||||||
William G. Dempsey** (I) | ✓ | |||||||||||
Gary L. Ellis (I) | ✓ | |||||||||||
Stacy Enxing Seng (I) | ✓ | ✓ | ||||||||||
Mary Garrett (I) | ✓ | |||||||||||
James R. Giertz (I) | ✓ | ✓ | ||||||||||
Charles E. Golden (I) | C | ✓ | ✓ | C | ✓ | ✓ | ||||||
William H. Kucheman (I) | ✓ | ✓ | ✓ | ✓ | ||||||||
Ronald A. Malone (I) | ✓ | C | ✓ | ✓ | C | ✓ | ||||||
Eduardo R. Menascé (I)* | ✓ | |||||||||||
Number of Meetings in fiscal year 2016 | 9 | 6 | 6 | 2 | ||||||||
Nancy M. Schlichting (I) | ✓ | |||||||||||
Number of Meetings in fiscal year 2017 | 9 | 6 | 6 | 3 |
Audit Committee Report |
Submitted by the Audit Committee | |
Charles E. Golden (Chair) | |
William G. Dempsey Gary L. Ellis Mary Garrett James R. | |
Security Ownership of Certain Beneficial Owners and Management |
· | each of our directors and our NEOs; |
· | all of our directors and executive officers as a group; and |
· | each person or entity that is known by us to be the beneficial owner of more than five percent of our common stock. |
Name of Beneficial Owner | Shares Owned Directly | Shares Owned Indirectly | Shares Under Options/RSUs Exercisable/ Vesting Within 60 Days | Total Number of Shares Beneficially Owned | Percent of Class | |||||
Directors and NEOs: | ||||||||||
Rolf A. Classon | 15,806 | - | 75,098 | 90,904 | * | |||||
John J. Greisch | 216,783 | - | 791,761 | 1,008,544 | 1.5% | |||||
William G. Dempsey | - | - | 10,713 | 10,713 | * | |||||
Stacy Enxing Seng | - | - | 6,622 | 6,622 | * | |||||
James R. Giertz | 2,000 | - | 25,953 | 27,953 | * | |||||
Charles E. Golden | 6,464 | - | 58,482 | 64,946 | * | |||||
William Kucheman | - | - | 15,095 | 15,095 | * | |||||
Ronald A. Malone | - | - | 34,513 | 34,513 | * | |||||
Eduardo R. Menascé | - | - | 38,258 | 38,258 | * | |||||
Deborah M. Rasin | - | - | 3,795 | 3,795 | * | |||||
Alton E. Shader | 37,638 | - | 57,003 | 94,641 | * | |||||
Carlyn D. Solomon (1) | 12,297 | - | - | 12,297 | * | |||||
Steven J. Strobel | - | - | 14,922 | 14,922 | * | |||||
All directors and executive officers as a group (13) | 290,988 | - | 1,132,215 | 1,423,203 | 2.2% |
Name of Beneficial Owner | Shares Owned Directly | Shares Owned Indirectly | Shares Under Options/RSUs Exercisable/ Vesting Within 60 Days | Total Number of Shares Beneficially Owned | Percent of Class | |
Directors and NEOs: | ||||||
Rolf A. Classon | - | 15,806 | 79,075 | 94,881 | * | |
William G. Dempsey | - | - | 13,490 | 13,490 | * | |
John J. Greisch | 230,851 | - | 479,187 | 710,038 | 1.1% | |
Gary L. Ellis | - | - | 993 | 993 | * | |
Stacy Enxing Seng | - | - | 9,361 | 9,361 | * | |
Mary Garrett | 300 | - | 2,676 | 2,976 | * | |
James R. Giertz | 2,000 | - | 28,874 | 30,874 | * | |
Charles E. Golden | 6,466 | - | 57,141 | 63,607 | * | |
William Kucheman | - | - | 17,914 | 17,914 | * | |
Ronald A. Malone | - | - | 37,514 | 37,514 | * | |
Nancy M. Schlichting | - | - | 2,676 | 2,676 | * | |
Carlos Alonso Marum | 3,411 | - | 12,865 | 16,276 | * | |
Deborah M. Rasin | - | - | 27,025 | 27,025 | * | |
Alton E. Shader | 50,910 | - | 58,393 | 109,303 | * | |
Steven J. Strobel | 13,891 | - | 29,521 | 43,412 | * | |
All directors and executive officers as a group (20) | 341,292 | 15,806 | 909,755 | 1,266,853 | 1.9% |
Name of Beneficial Owner | Total Number of Shares Beneficially Owned | Percent of Class | Total Number of Shares Beneficially Owned | Percent of Class | ||
Other 5% Beneficial Owners: | ||||||
BlackRock, Inc. 55 East 52nd Street New York, NY 10055 | 5,260,217(1) | 7.9% | ||||
The Vanguard Group 100 Vanguard Blvd. Malvern, PA 19355 | 4,059,389(1) | 6.2% | 4,884,096(2) | 7.4% | ||
BlackRock Inc. 55 East 52nd Street New York, NY 10055 | 5,335,694(2) | 8.1% | ||||
FMR LLC 245 Summer Street Boston, MA 02210 | 4,506,940(3) | 6.8% | ||||
(1) | This information is based solely on the Schedule 13G/A filed by |
(2) | This information is based solely on the Schedule 13G/A filed by |
(3) | This information is based solely on the Schedule 13G filed by FMR LLC with the SEC on February 14, 2017. |
Compensation Discussion and Analysis |
Compensation and Management Development Committee Report The Compensation and Management Development Committee of the Board has reviewed and discussed the Compensation Discussion and Analysis contained in this proxy statement with management and, based upon this review and discussion, recommended to the Board that the Compensation Discussion and Analysis be included in this proxy statement and the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, The Compensation and Management Development Committee Ronald A. Malone (Chair) Stacy Enxing Seng |
NEOs | 25 |
Goals of Our Compensation Program | 25 |
Role of the Compensation and Management Development Committee | 25 |
Compensation Consultant | 26 |
Peer Group and Survey Data | 26 |
Links Between Executive Compensation and Company Performance | |
2017 Advisory Vote | 27 |
CEO Compensation | |
3 Year TSR Graph | |
Components of | |
Performance-Based Pay | |
Target CEO Compensation Summary | |
Key Governance Features Relating to Executive Compensation | |
Elements of Executive Compensation | |
Base Salary | |
Annual Cash Incentives | |
Long-Term Equity Awards | 34 |
Retirement and Change in Control Agreements | 37 |
Other Personal Benefits | 38 |
Employment Agreements | 38 |
Risk Assessment | 38 |
John J. Greisch | President and Chief Executive Officer | |
Steven J. Strobel | Senior Vice President and Chief Financial Officer | |
Alton E. Shader | Senior Vice President and President Front Line Care | |
Carlos Alonso Marum | Senior Vice President and President International | |
Deborah M. Rasin | Senior Vice President, Chief Legal Officer and Corporate Secretary | |
· | align management’s interests with those of shareholders over the short- and long-term; |
· | motivate and incent employees to achieve superior results; |
· | provide clear accountability and reward for producing results; |
· | attract and retain superior talent; and |
· | ensure simplicity and transparency in compensation policies and programs. |
Compensation Peer Group (1) | |
Bio-Rad Laboratories, Inc. | MEDNAX, Inc. |
Bruker | |
C.R. Bard, Inc. | |
The Cooper Companies, Inc. | |
DENTSPLY SIRONA Inc. | |
Edwards | |
Halyard Health, Inc. | |
Hologic, Inc. |
In comparison to the FY2016 Compensation Peer Group, Laboratory Corporation of America | |
· | Executive compensation is comprised of (1) base salary, (2) variable cash incentive awards and (3) long-term, equity-based incentive awards. |
· |
· | Our variable |
· | As shown in the section below, the significant majority of our CEO’s compensation is performance-based and therefore at-risk. |
· | Base salary in |
· | Fiscal year |
· | A fiscal year |
· | An increase to Mr. Greisch’s 2017 base salary and long-term, equity-based incentive award target was made by the Committee to ensure continued alignment of Mr. Greisch’s compensation with the external market and shareholder interests. |
· | In fiscal year |
· | As shown in the section below, the significant majority of our CEO’s compensation is performance-based and therefore at-risk. |
What We Do | What We Don’t Do | |
We require significant stock ownership, including 6X base salary for our CEO, ensuring that executives are invested in Hill-Rom’s long-term success | We don’t re-price stock options or buy-back equity grants | |
We engage a fully independent compensation consultant | We don’t provide for single-trigger change in control in executive employment agreements | |
We have a 24-month clawback policy in place in the event of executive misconduct resulting in a material restatement in our financial statements | We don’t provide gross-ups for 280G excise taxes related to change in control agreements | |
Our executives have at-will employment agreements | We don’t allow executives to hedge or pledge their Hill-Rom stock under any circumstances | |
Our incentive plans include a cap on payout opportunities. This mitigates against the possibility of excessively high earning potential that could motivate inappropriate behavior. | ||
We annually make awards of incentives that are tied to stock price performance. The overlay of these awards helps mitigate the possibility of behaviors that would enhance incentive earnings in one year at the expense of future performance results. | ||
Element | Purpose | Key Characteristics | ||
Base Salary | Reflects each executive’s base level of responsibility, qualifications and contributions to the Company | Fixed compensation that is reviewed and, if appropriate, adjusted annually | ||
Variable Annual Cash Incentive | Motivates our executives to achieve annual company objectives that the Board believes will drive long-term growth in shareholder value | This annual cash bonus is earned by achieving designated levels of operating cash flow, revenue and adjusted EPS; payouts may be adjusted for individual performance (in each case, as permitted under the STIC Plan (as later defined in this proxy statement)) |
Element | Purpose | Key Characteristics | ||
Long-term, Equity-based Incentive – PSU Award | Motivates our executives by directly linking their compensation to the value of our stock relative to our peer group | |||
Long-term, Equity-based Incentive – RSU Award | Motivates our executives by tying compensation to long-term stock appreciation; additionally, the time-vesting nature of the awards helps enable executive retention | Long-term restricted stock units vest on a three-year cliff basis (other than certain sign-on | ||
Long-term, Equity-based Incentive - Stock Options | Motivates our executives by linking their compensation to appreciation in our stock price | Stock options vest 25% per year over a four-year period |
Name | 2015 Base Salary | 2016 Base Salary | 2016 Base Salary Increase | |||
John J. Greisch | $1,000,000 | $1,030,000 | 3.0% | |||
Steven J. Strobel | $475,000 | $489,000 | 3.0% | |||
Deborah M. Rasin* | N/A | $450,000 | N/A | |||
Alton E. Shader | $450,000 | $464,000 | 3.0% | |||
Carlyn D. Solomon** | $600,000 | $630,000 | 5.0% |
Name | 2016 Base Salary | 2017 Base Salary | 2017 Base Salary Increase | |||
John J. Greisch | $1,030,000 | $1,050,000 | 1.94% | |||
Steven J. Strobel | $489,000 | $504,000 | 3.07% | |||
Alton E. Shader | $464,000 | $478,000 | 3.02% | |||
Carlos Alonso Marum | $453,000 | $467,000 | 3.09% | |||
Deborah M. Rasin | $450,000 | $464,000 | 3.11% |
Fiscal Year 2016 STIC Plan Targets and Achievement Calculation ($ in Millions except EPS) | ||||||||||||
Threshold | Target | Maximum | Weight | Achieved | Achievement | |||||||
STIC Revenue* | $2,423 | $2,692 | $2,961 | 25% | $2,665 | 25% | ||||||
STIC Adjusted EPS** | $2.64 | $3.10 | $3.57 | 50% | $3.17 | 51% | ||||||
STIC Operating Cash Flow*** | $247 | $290 | $334 | 25% | $302 | 26% | ||||||
Percentage Payout | 50% | 100% | 150% | |||||||||
STIC Plan Funding Percentage | 102% |
Fiscal Year 2017 STIC Plan Targets and Achievement Calculation ($ in Millions except EPS) | ||||||||||||
Threshold | Target | Maximum | Weight | Achieved | Achievement | |||||||
STIC Revenue(1) | $2,469 | $2,743 | $3,017 | 25% | $2,681 | 24% | ||||||
STIC Adjusted EPS(2) | $3.23 | $3.80 | $4.37 | 50% | $3.64 | 48% | ||||||
STIC Free Cash Flow(3) | $184 | $217 | $250 | 25% | $229 | 27% | ||||||
Percentage Payout | 50% | 100% | 150% | |||||||||
STIC Plan Funding Percentage | 99% | |||||||||||
STIC Plan Funding Percentage After Adjustment (4) | 85% |
Name | Fiscal Year 2016 Base Salary | Fiscal Year 2016 STIC Plan Target Opportunity as a % of Base Salary | Fiscal Year 2016 STIC Plan Target Opportunity | Fiscal Year 2016 STIC Plan Payout*** | Fiscal Year 2017 Base Salary | Fiscal Year 2017 STIC Plan Target Opportunity as a % of Base Salary | Fiscal Year 2017 STIC Plan Target Opportunity | Fiscal Year 2017 STIC Plan Payout | ||||||||
John J. Greisch | $ 1,030,000 | 110% | $ 1,133,000 | $ 1,156,793 | $ 1,050,000 | 110% | $ 1,155,000 | $ 981,750 | ||||||||
Steven J. Strobel | $ 489,000 | 75% | $ 366,750 | $ 449,342 | $ 504,000 | 75% | $ 378,000 | $ 321,300 | ||||||||
Deborah M. Rasin* | $ 337,500 | 60% | $ 202,500 | $ 217,090 | ||||||||||||
Alton E. Shader | $ 464,000 | 70% | $ 324,800 | $ 464,269 | $ 478,000 | 70% | $ 334,600 | $ 284,410 | ||||||||
Carlyn D. Solomon** | $ 630,000 | 80% | $ 504,000 | $ 428,648 | ||||||||||||
*Ms. Rasin joined the Company on January 1, 2016 and her base salary is prorated to her hire date for purposes of the STIC Plan payout. **Mr. Solomon left the Company in November 2016. *** The Individual Performance Modifiers applied by the Compensation and Management Development Committee were 100% for Mr. Greisch, 120% for Mr. Strobel, 105% for Ms. Rasin, 140% for Mr. Shader and 83% for Mr. Solomon. | ||||||||||||||||
Carlos Alonso Marum | $ 467,000 | 70% | $ 326,900 | $ 333,438 | ||||||||||||
Deborah M. Rasin | $ 464,000 | 60% | $ 278,400 | $ 236,640 |
· | Awards targeted to align with competitive market levels; |
· | Payouts that correlate high performance with increased payouts and low performance with reduced payouts; |
· | A mix of awards representative of typical market practice; and |
· | Awards that support internal equity among Hill-Rom’s executives. |
Name | Fiscal Year 2016 Base Salary | Fiscal Year 2016 Target LTI Opportunity (as a % of Base Salary) | Fiscal Year 2016 Target LTI Award | |||||||
John J. Greisch | $ | 1,030,000 | 475% | $ | 4,892,500 | |||||
Steven J. Strobel | $ | 489,000 | 225% | $ | 1,100,250 | |||||
Deborah M. Rasin* | $ | 337,500 | 175% | N/A | ||||||
Alton E. Shader | $ | 464,000 | 175% | $ | 812,000 | |||||
Carlyn D. Solomon** | $ | 630,000 | 300% | $ | 1,890,000 |
Name | Fiscal Year 2017 Base Salary | Fiscal Year 2017 Target LTI Opportunity (as a % of Base Salary) | Fiscal Year 2017 Target LTI Award | 2017 Actual LTI Award* | PSUs Granted (50%) | RSUs Granted (25%) | Stock Options Granted (25%) | |||||||
John J. Greisch | $ 1,050,000 | 500% | $ 5,250,000 | $ 5,250,000 | 46,085 | 23,043 | 83,334 | |||||||
Steven J. Strobel | $ 504,000 | 250% | $ 1,260,000 | $ 1,260,000 | 11,061 | 5,531 | 20,000 | |||||||
Alton E. Shader | $ 478,000 | 175% | $ 836,500 | $ 1,003,800 | 8,812 | 4,406 | 15,934 | |||||||
Carlos Alonso Marum | $ 467,000 | 175% | $ 817,250 | $ 898,975 | 7,892 | 3,946 | 14,270 | |||||||
Deborah M. Rasin | $ 464,000 | 175% | $ 812,000 | $ 812,000 | 7,128 | 3,564 | 12,889 | |||||||
* Dollar values shown under this column differ from the expense-based values shown in the Summary Compensation Table and Grants of Plan Based Awards Table. See “Calculation of shares” within the narrative below. |
· | From October 1, |
· | From October 1, |
· | The Adjusted Free Cash Flow performance of |
Performance Period | Date Performance Measured | Measure | Threshold (% to Target Payout) | Target (% to Target Payout) | Maximum (% to Target Payout) | Achieved | % of Measure Target | % of Target Payout | ||||||||
FY 2014 – FY 2016 | Sept 30 2014 | Free Cash Flow* | $153M (50%) | $180M (100%) | $207M (150%) | $174M | 96.5% | 123.1% | ||||||||
Sept 30 2016 | Relative TSR | 0 - 25% (50%) | 50% (100%) | 75% (150%) | 63.8% | 127.6% |
Measure | Threshold | Target | Maximum | Achieved | % of Measure Target | % of Target Payout | ||||||
Free Cash Flow* | $112M | $132M | $152M | $135M | 101.3% | 132.9% | ||||||
Relative TSR | 0 - 25% | 50% | 75% | 65.6% | 131.2% | |||||||
Percentage Payout | 50% | 100% | 150% |
Relative TSR Peer Group | |
Companies in Compensation Peer Group | Additional Companies |
Agilent Technologies, Inc. | Abbott Laboratories |
Bio-Rad Laboratories, Inc. | Align Technology, Inc. |
Bruker Corporation | Baxter International Inc. |
C.R. Bard, Inc. | Becton, Dickinson and Company |
The Cooper Companies, Inc. | Boston Scientific Corporation |
DENTSPLY SIRONA Inc. | Cantel Medical Corp * |
Edwards Life Sciences Corporation | Charles River Laboratories International, Inc* |
Halyard Health, Inc. | Danaher Corp. * |
Hologic, Inc. | Haemonetics Corporation |
Intuitive Surgical, Inc. | IDEXX Laboratories, Inc. * |
MEDNAX, Inc. | Illumina Inc. * |
Patterson Companies, Inc. | Integra LifeSciences Holdings Corporation * |
PerkinElmer, Inc. | Johnson & Johnson |
Quest Diagnostics Incorporated | Massimo Corporation * |
St. Jude Medical, Inc. | Medtronic plc |
STERIS plc | Mettler-Toledo International Inc. |
Teleflex Incorporated | ResMed Inc. |
Varian Medical Systems, Inc. | Stryker Corporation |
Waters Corporation | Thermo Fisher Scientific Inc. |
West Pharmaceutical Services, Inc. * | |
Zimmer Biomet Holdings, Inc. |
Stock Ownership Guidelines | ||
Executive Officer | Multiple of Annual Salary | |
CEO | 6x | |
CFO | 3x | |
Senior Vice President | 2x | |
Vice President who (1) reports to the CEO, or (2) is a Section 16 reporting officer | 1x |
· | accelerated vesting of outstanding time-based RSUs and stock options which have been held for at least one year prior to retirement; |
· |
· | vesting of outstanding PSUs which have been held for at least one year prior to retirement, based on achievement of performance objectives during the full performance period; |
· | pro-rata vesting of outstanding PSUs which have been granted during the year of retirement, based on achievement of performance objectives during the full performance period; and |
· | an extension of |
· | appropriate pay philosophy, peer group and market positioning, |
· | effective balance in cash and equity mix, short and |
· | elements of the compensation |
· | meaningful risk mitigants, such as the stock ownership guidelines and executive compensation recoupment policies. |
Summary Compensation |
Non-Equity | Non-Equity | ||||||||||||||||||||||||||||||||||||||||||||
Name and | Stock | Option | Incentive Plan | All Other | Stock | Option | Incentive Plan | All Other | |||||||||||||||||||||||||||||||||||||
Principal Position | Year | Salary | Bonus | Awards (1) | Awards (2) | Comp. (3) | Comp. (4) | Total | Year | Salary (1) | Bonus | Awards (2) | Awards (3) | Comp. (4) | Comp. (5) | Total | |||||||||||||||||||||||||||||
JOHN J. GREISCH | 2016 | $1,065,000 | None | $3,550,162 | $1,197,776 | $1,156,793 | $228,353 | $7,198,084 | 2017 | $ | 1,047,692 | None | $ | 3,816,095 | $ | 1,251,677 | $ | 981,750 | $ | 238,363 | $ | 7,335,577 | |||||||||||||||||||||||
President and Chief Executive Officer, | 2015 | $994,615 | None | $5,778,430 | $1,148,314 | $1,123,100 | $207,236 | $9,251,695 | 2016 | $ | 1,065,000 | None | $ | 3,550,162 | $ | 1,197,776 | $ | 1,156,793 | $ | 228,353 | $ | 7,198,084 | |||||||||||||||||||||||
Member of the Board of Directors | 2014 | $961,923 | None | $5,187,933 | $963,908 | $774,895 | $197,226 | $8,085,885 | 2015 | $ | 994,615 | None | $ | 5,778,430 | $ | 1,148,314 | $ | 1,123,100 | $ | 207,236 | $ | 9,251,695 | |||||||||||||||||||||||
STEVEN J. STROBEL (5) | 2016 | $505,654 | None | $718,584 | $242,435 | $449,342 | $80,337 | $1,966,352 | |||||||||||||||||||||||||||||||||||||
STEVEN J. STROBEL | 2017 | $ | 502,269 | None | $ | 915,933 | $ | 300,400 | $ | 321,300 | $ | 80,185 | $ | 2,120,087 | |||||||||||||||||||||||||||||||
Senior Vice President and | 2015 | $420,192 | None | $853,493 | $272,725 | $263,880 | $75,912 | $1,886,202 | 2016 | $ | 505,654 | None | $ | 718,584 | $ | 242,435 | $ | 449,342 | $ | 80,337 | $ | 1,966,352 | |||||||||||||||||||||||
Chief Financial Officer | 2015 | $ | 420,192 | None | $ | 853,493 | $ | 272,725 | $ | 263,880 | $ | 75,912 | $ | 1,886,202 | |||||||||||||||||||||||||||||||
DEBORAH M. RASIN (6)(7) | 2016 | $337,500 | $750,000 | $1,367,532 | $196,885 | $217,090 | $142,995 | $3,012,002 | |||||||||||||||||||||||||||||||||||||
Senior Vice President, | |||||||||||||||||||||||||||||||||||||||||||||
Chief Legal Officer and Secretary | |||||||||||||||||||||||||||||||||||||||||||||
ALTON E. SHADER | 2016 | $479,692 | None | $648,199 | $218,671 | $464,269 | $229,088 | $2,039,920 | 2017 | $ | 476,385 | None | $ | 729,678 | $ | 239,329 | $ | 284,410 | $ | 222,463 | $ | 1,952,265 | |||||||||||||||||||||||
Senior Vice President and | 2015 | $431,191 | None | $1,203,848 | $220,832 | $402,019 | $84,276 | $2,342,166 | 2016 | $ | 479,692 | None | $ | 648,199 | $ | 218,671 | $ | 464,269 | $ | 229,088 | $ | 2,039,920 | |||||||||||||||||||||||
President, Front Line Care | 2014 | $418,357 | None | $1,068,911 | $202,249 | $204,006 | $51,247 | $1,944,770 | 2015 | $ | 431,191 | None | $ | 1,203,848 | $ | 220,832 | $ | 402,019 | $ | 84,276 | $ | 2,342,166 | |||||||||||||||||||||||
CARLYN D. SOLOMON (8) | 2016 | $649,615 | $0 | $1,577,127 | $532,112 | $428,648 | $101,884 | $3,289,386 | |||||||||||||||||||||||||||||||||||||
Chief Operating Officer | 2015 | $507,692 | $806,250 | $3,937,368 | $459,328 | $532,039 | $152,353 | $6,395,030 | |||||||||||||||||||||||||||||||||||||
CARLOS ALONSO MARUM (6) | 2017 | $ | 465,385 | None | $ | 653,497 | $ | 214,335 | $ | 333,438 | $ | 86,005 | $ | 1,752,660 | |||||||||||||||||||||||||||||||
Senior Vice President and | 2016 | $ | 468,423 | None | $ | 575,274 | $ | 194,086 | $ | 323,759 | $ | 119,158 | $ | 1,680,700 | |||||||||||||||||||||||||||||||
President, International | 2015 | $ | 194,615 | $ | 100,000 | $ | 206,708 | $ | 71,261 | $ | 146,465 | $ | 33,703 | $ | 752,752 | ||||||||||||||||||||||||||||||
DEBORAH M. RASIN (7)(8) | 2017 | $ | 462,385 | $None | $ | 590,234 | $ | 193,593 | $ | 236,640 | $ | 70,673 | $ | 1,553,524 | |||||||||||||||||||||||||||||||
Senior Vice President, | 2016 | $ | 337,500 | $ | 750,000 | $ | 1,367,532 | $ | 196,885 | $ | 217,090 | $ | 142,995 | $ | 3,012,002 | ||||||||||||||||||||||||||||||
Chief Legal Officer and Secretary |
(1) |
(2) | The amounts in this column represent the grant date fair value of time-based RSUs granted during the applicable fiscal year, excluding a reduction for risk of forfeiture. Also included is the grant date fair value of PSUs granted during each of fiscal years 2017, 2016 |
The amounts in this column represent the grant date fair value of time-based stock options granted during the applicable fiscal years, excluding the reduction for risk of forfeiture. These grant date fair values were based on the methodology set forth in Notes 1 and 7 to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, |
The amounts in this column represent cash awards earned for the applicable fiscal year and paid in the subsequent fiscal year, under our 162(m) Incentive Plan. |
Please refer to the “All Other Compensation” table below for further information. |
Mr. |
In 2016, Ms. Rasin received a one-time sign-on award comprised of cash and RSUs upon commencement of her employment to compensate her for the bonus and unvested equity opportunities foregone at her previous employer upon joining Hill-Rom. Starting in January of 2016, amounts shown are on a pro rata basis. |
Ms. Rasin was elected Senior Vice President, Chief Legal Officer and Corporate Secretary effective January 1, 2016. |
Company Contributions | Company Contributions | |||||||||||||||||||||||
Name | 401(k) (a) | Supplemental 401(k) (a) | Relocation and Housing Costs (b) | Gross-up on Relocation and Housing (b) | Health & Welfare Benefits | Total All Other Compensation | 401(k) (a) | Supplemental 401(k) (a) | Relocation and Housing Costs (b) | Gross-up on Relocation and Housing (b) | Health & Welfare Benefits | Total All Other Compensation | ||||||||||||
Mr. Greisch | $18,550 | $191,102 | $0 | $0 | $18,701 | $228,353 | $ 18,900 | $ 200,641 | $ 0 | $ 0 | $ 18,822 | $ 238,363 | ||||||||||||
Mr. Strobel | $18,550 | $40,927 | $0 | $0 | $20,860 | $80,337 | $ 18,900 | $ 42,469 | $ 0 | $ 0 | $ 18,816 | $ 80,185 | ||||||||||||
Mr. Shader | $ 18,900 | $ 37,655 | $ 90,000 | $ 56,066 | $ 19,842 | $ 222,463 | ||||||||||||||||||
Mr. Alonso Marum | $ 18,900 | $ 36,343 | $ 750 | $ 662 | $ 29,350 | $ 86,005 | ||||||||||||||||||
Ms. Rasin | $17,350 | $23,889 | $52,905 | $32,111 | $16,741 | $142,995 | $ 19,062 | $ 32,764 | $ 0 | $ 0 | $ 18,847 | $ 70,673 | ||||||||||||
Mr. Shader | $18,550 | $35,656 | $95,000 | $55,895 | $23,987 | $229,088 | ||||||||||||||||||
Mr. Solomon (c) | $18,550 | $59,887 | $0 | $0 | $23,447 | $101,884 |
(a) | Amounts represent Company |
(b) | Represents |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (2) | All Other Stock Awards: Number of | Exercise or Base | Grant Date Fair Value of | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Grant Date | Actual Amount 2016 | Min. | Target | Max. | Min. | Target | Max. | Shares or Stock Units (3) | Price of OptionAwards (4) | Stock and Option Awards (5) | Grant Date | Actual Amount 2017 | Min. | Target | Max. | Min. | Target | Max. | All Other Stock Awards: Number of Shares or Stock Units (3) | Exercise or Base Price of Option Awards (4) | Grant Date Fair Value of Stock and Option Awards (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
John J. Greisch | n.a. | $ | 1,156,793 | - | $ | 1,133,000 | $ | 2,549,250 | n.a. | $ | 981,750 | - | $ | 1,155,000 | $ | 2,598,750 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | - | 46,605 | 104,861 | $ | 2,354,019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | 23,303 | $ | 1,196,143 | 11/14/2016 | - | 46,085 | 103,691 | $ | 2,578,456 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | 84,529 | $ | 51.33 | $ | 1,197,776 | 11/14/2016 | 23,043 | $ | 1,237,640 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/14/2016 | 83,334 | $ | 53.70 | $ | 1,251,677 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Steven J. Strobel | n.a. | $ | 449,342 | - | $ | 366,750 | $ | 825,188 | n.a. | $ | 321,300 | - | $ | 378,000 | $ | 850,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | - | 9,433 | 21,224 | $ | 476,461 | 11/14/2016 | - | 11,061 | 24,887 | $ | 618,863 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | 4,717 | $ | 242,124 | 11/14/2016 | 5,531 | $ | 297,070 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | - | 17,109 | $ | 51.33 | $ | 242,435 | 11/14/2016 | 20,000 | $ | 53.70 | $ | 300,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deborah M. Rasin | n.a. | $ | 217,090 | - | $ | 202,500 | $ | 455,625 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/04/2016 | - | 8,327 | 18,736 | $ | 420,597 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/04/2016 | 15,860 | $ | 750,019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/04/2016 | - | 4,164 | $ | 196,916 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/04/2016 | 15,180 | $ | 47.29 | $ | 196,885 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Alton E. Shader | n.a. | $ | 464,269 | - | $ | 324,800 | $ | 730,800 | n.a. | $ | 284,410 | - | $ | 334,600 | $ | 752,850 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | - | 8,509 | 19,145 | $ | 429,790 | 11/14/2016 | - | 8,812 | 19,827 | $ | 493,031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | 4,255 | $ | 218,409 | 11/14/2016 | 4,406 | $ | 236,646 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | - | 15,432 | $ | 51.33 | $ | 218,671 | 11/14/2016 | 15,934 | $ | 53.70 | $ | 239,329 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carlyn D. Solomon* | n.a. | $ | 428,648 | - | $ | 504,000 | $ | 1,134,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carlos Alonso Marum | n.a. | $ | 333,438 | - | $ | 326,900 | $ | 735,525 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | - | 20,704 | 46,584 | $ | 1,045,759 | 11/14/2016 | - | 7,892 | 17,757 | $ | 441,557 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | 10,352 | $ | 531,368 | 11/14/2016 | 3,964 | $ | 211,940 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/16/2015 | - | 37,552 | $ | 51.33 | $ | 532,112 | 11/14/2016 | 14,270 | $ | 53.70 | $ | 214,335 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deborah M. Rasin | n.a. | $ | 236,640 | - | $ | 278,400 | $ | 626,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/14/2016 | - | 7,128 | 16,038 | $ | 398,812 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/14/2016 | 3,564 | $ | 191,422 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/14/2016 | 12,889 | $ | 53,70 | $ | 193,593 |
1) | Amounts represent actual and the potential cash awards that could be paid under our Section 162(m) Incentive Plan, assuming |
2) | The amounts under the “Target” column reflect the number of PSUs granted to the NEOs on November |
3) | Amounts under this column represent stock options and RSU’s granted to our NEOs during fiscal year |
4) | The average of the high and low selling prices of our common stock on the NYSE on the grant date. |
5) | The grant date fair values of stock and option awards granted to our NEOs are based on the methodology set forth in Notes 1 and 7 to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, |
Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options | Number of Securities Underlying Unexercised Options Unexcercisable | Option Grant Date (1) | Option Exercise Price | Option Expiration Date | Grant Date | Number of Shares or Units of Stock That Have Not Vested (2) | Market Value of Shares or Units of Stock That Have Not Vested (3) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (4) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (3) | |||||||||||||||||||||||
John J. Greisch | 207,987 | 0 | 1/8/2010 | $ | 23.92 | 1/8/2020 | |||||||||||||||||||||||||||
147,679 | 0 | 11/16/2010 | $ | 38.81 | 11/16/2020 | ||||||||||||||||||||||||||||
189,162 | 0 | 11/29/2011 | $ | 30.63 | 11/29/2021 | ||||||||||||||||||||||||||||
90,287 | 30,096 | 11/13/2012 | $ | 26.94 | 11/13/2022 | ||||||||||||||||||||||||||||
40,398 | 40,399 | 11/18/2013 | $ | 41.53 | 11/18/2023 | 11/18/2013 | 24,160 | $ | 1,497,424 | ||||||||||||||||||||||||
12/12/2013 | 52,073 | $ | 3,227,494 | ||||||||||||||||||||||||||||||
22,410 | 67,232 | 11/17/2014 | $ | 44.93 | 11/17/2024 | 11/17/2014 | 26,223 | $ | 1,625,308 | 77,684 | $ | 4,814,881 | |||||||||||||||||||||
0 | 84,529 | 11/16/2015 | $ | 51.33 | 11/16/2025 | 11/16/2015 | 23,606 | $ | 1,463,112 | 104,861 | $ | 6,499,300 | |||||||||||||||||||||
Steven J. Strobel | 5,322 | 15,968 | 11/17/2014 | $ | 44.93 | 11/17/2024 | 11/17/2014 | 6,229 | $ | 386,061 | 18,451 | $ | 1,143,611 | ||||||||||||||||||||
0 | 17,109 | 11/16/2015 | $ | 51.33 | 11/16/2025 | 11/16/2015 | 4,778 | $ | 296,164 | 21,224 | $ | 1,315,479 | |||||||||||||||||||||
Deborah M. Rasin | 0 | 15,180 | 1/4/2016 | $ | 47.29 | 1/4/2026 | 1/4/2016 | 20,217 | $ | 1,253,064 | 18,736 | $ | 1,161,242 | ||||||||||||||||||||
Alton E. Shader | 3,988 | 0 | 7/11/2011 | $ | 45.91 | 7/11/2021 | |||||||||||||||||||||||||||
5,085 | 0 | 11/29/2011 | $ | 30.63 | 11/29/2021 | ||||||||||||||||||||||||||||
17,054 | 5,685 | 11/13/2012 | $ | 26.94 | 11/13/2022 | ||||||||||||||||||||||||||||
8,476 | 8,477 | 11/18/2013 | $ | 41.53 | 11/18/2023 | 11/18/2013 | 15,095 | $ | 935,616 | ||||||||||||||||||||||||
4,309 | 12,930 | 11/17/2014 | $ | 44.93 | 11/17/2024 | 11/17/2014 | 5,043 | $ | 312,562 | 14,940 | $ | 925,964 | |||||||||||||||||||||
9/1/2015 | 1,977 | $ | 122,558 | ||||||||||||||||||||||||||||||
0 | 15,432 | 11/16/2015 | $ | 51.33 | 11/16/2025 | 11/16/2015 | 4,310 | $ | 267,156 | 19,145 | $ | 1,186,623 | |||||||||||||||||||||
Carlyn D. Solomon* | 8,964 | 26,893 | 11/17/2014 | $ | 44.93 | 11/17/2024 | 11/17/2014 | 48,163 | $ | 2,985,121 | 31,074 | $ | 1,925,953 | ||||||||||||||||||||
0 | 37,552 | 11/16/2015 | $ | 51.33 | 11/16/2025 | 11/16/2015 | 10,487 | $ | 649,965 | 46,584 | $ | 2,887,276 |
Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options | Number of Securities Underlying Unexercised Options Unexcercisable | Option Grant Date (1) | Option Exercise Price | Option Expiration Date | Grant Date | Number of Shares or Units of Stock That Have Not Vested (2) | Market Value of Shares or Units of Stock That Have Not Vested (3) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (4) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (3) | |||||||||||||||||||||||
John J. Greisch | 147,679 | 11/16/2010 | $ | 38.81 | 11/16/2020 | ||||||||||||||||||||||||||||
189,162 | 11/29/2011 | $ | 30.63 | 11/29/2021 | |||||||||||||||||||||||||||||
120,383 | 11/13/2012 | $ | 26.94 | 11/13/2022 | |||||||||||||||||||||||||||||
60,597 | 20,200 | 11/18/2013 | $ | 41.53 | 11/18/2023 | ||||||||||||||||||||||||||||
12/12/2013 | 26,305 | $ | 1,946,572 | ||||||||||||||||||||||||||||||
44,821 | 44,821 | 11/17/2014 | $ | 44.93 | 11/17/2024 | 11/17/2014 | 26,493 | $ | 1,960,518 | ||||||||||||||||||||||||
21,132 | 63,397 | 11/16/2015 | $ | 51.33 | 11/16/2025 | 11/16/2015 | 23,850 | $ | 1,764,870 | 104,861 | $ | 7,759,733 | |||||||||||||||||||||
83,334 | 11/14/2016 | $ | 53.70 | 11/14/2026 | 11/14/2016 | 23,281 | $ | 1,722,764 | 103,691 | $ | 7,673,153 | ||||||||||||||||||||||
Steven J. Strobel | 10,645 | 10,645 | 11/17/2014 | $ | 44.93 | 11/17/2024 | 11/17/2014 | 6,293 | $ | 465,683 | |||||||||||||||||||||||
4,277 | 12,832 | 11/16/2015 | $ | 51.33 | 11/16/2025 | 11/16/2015 | 4,828 | $ | 357,245 | 21,224 | $ | 1,570,595 | |||||||||||||||||||||
20,000 | 11/14/2016 | $ | 53.70 | 11/14/2026 | 11/14/2016 | 5,588 | $ | 413,514 | 24,887 | $ | 1,841,657 | ||||||||||||||||||||||
Alton E. Shader | 3,988 | 7/11/2011 | $ | 45.91 | 7/11/2021 | ||||||||||||||||||||||||||||
5,085 | 11/29/2011 | $ | 30.63 | 11/29/2021 | |||||||||||||||||||||||||||||
7,739 | 11/13/2012 | $ | 26.94 | 11/13/2022 | |||||||||||||||||||||||||||||
12,714 | 4,239 | 11/18/2013 | $ | 41.53 | 11/18/2023 | ||||||||||||||||||||||||||||
8,619 | 8,620 | 11/17/2014 | $ | 44.93 | 11/17/2024 | 11/17/2014 | 5,095 | $ | 377,026 | ||||||||||||||||||||||||
9/1/2015 | 1,998 | $ | 147,835 | ||||||||||||||||||||||||||||||
3,858 | 11,574 | 11/16/2015 | $ | 51.33 | 11/16/2025 | 11/16/2015 | 4,355 | $ | 322,255 | 19,145 | $ | 1,416,749 | |||||||||||||||||||||
15,934 | 11/14/2016 | $ | 53.70 | 11/14/2026 | 11/14/2016 | 4,451 | $ | 329,406 | 19,827 | $ | 1,467,198 | ||||||||||||||||||||||
Carlos Alonso Marum | 2,450 | 2,451 | 4/13/2015 | $ | 50.98 | 4/13/2025 | 4/13/2015 | 1,439 | $ | 106,517 | |||||||||||||||||||||||
3,424 | 10,273 | 11/16/2015 | $ | 51.33 | 11/16/2025 | 11/16/2015 | 3,865 | $ | 285,978 | 16,992 | $ | 1,257,408 | |||||||||||||||||||||
14,270 | 11/14/2016 | $ | 53.70 | 11/14/2026 | 11/14/2016 | 3,987 | $ | 295,015 | 17,757 | $ | 1,314,018 | ||||||||||||||||||||||
Deborah M. Rasin | 3,795 | 11,385 | 1/4/2016 | $ | 47.29 | 1/4/2026 | 1/4/2016 | 20,426 | $ | 1,511,500 | 18,736 | $ | 1,386,446 | ||||||||||||||||||||
12,889 | 11/14/2016 | $ | 53.70 | 11/14/2026 | 11/14/2016 | 3,601 | $ | 266,455 | 16,038 | $ | 1,186,812 |
Unvested stock options based solely on continued employment |
Grant Date | Other Vesting Schedules (as of 9/30/ | |
1/4/2016 | ||
12/12/ | ||
Fully vest on |
Market value is determined by multiplying the number of unvested RSUs and/or PSUs by |
PSUs pursuant to the fiscal year |
Option Awards | Stock Awards | |||||||||||||||
Name | Number of Shares Acquired on Exercise | Value Realized on Exercise | Number of Shares Acquired on Vesting (1) | Value Realized on Vesting | ||||||||||||
John J. Greisch | - | - | 92,222 | $ | 5,398,683 | |||||||||||
Steven J. Strobel | - | - | - | - | ||||||||||||
Deborah M. Rasin | - | - | - | - | ||||||||||||
Alton E. Shader | - | - | 18,617 | $ | 1,093,445 | |||||||||||
Carlyn D. Solomon (2) | - | - | 18,918 | $ | 988,310 |
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 |
John J. Greisch | 207,987 | $ 8,722,786 | 116,169 | $ 7,829,103 |
Steven J. Strobel | - | - | 16,139 | $ 1,190,251 |
Alton E. Shader | 15,000 | 635,963 | 27,569 | $ 1,804,745 |
Carlos Alonso Marum | - | - | 3,716 | $ 274,055 |
Deborah M. Rasin | - | - | - | - |
Name | Plan (1) | Executive Contributions in Last Fiscal Year | Registrant Contributions in Last Fiscal Year | Aggregate Earnings in Last Fiscal Year (2) | Aggregate Withdrawals/ Distributions | Aggregate Balance at Last Fiscal Year End (3) | Plan (1) | Executive Contributions in Fiscal Year 2017 | Registrant Contributions in Fiscal Year 2017 | Aggregate Earnings in Fiscal Year 2017 (2) | Aggregate Withdrawals/ Distributions in Fiscal Year 2017 | Aggregate Balance at September 30, 2017 (3) | ||||||
John J. Greisch | SERP | - | $191,102 | $101,627 | None | $1,385,738 | SERP | - | $ 200,641 | $ 148,138 | None | $ 1,734,517 | ||||||
Steven J. Strobel | SERP | - | $40,927 | $4,490 | None | $78,954 | SERP | - | $ 42,469 | $ 9,969 | None | $ 131,392 | ||||||
Alton E. Shader | SERP | - | $ 37,655 | $ 26,960 | None | $ 223,126 | ||||||||||||
Carlos Alonso Marum | SERP | - | $ 36,343 | $ 8,282 | None | $ 97,052 | ||||||||||||
Deborah M. Rasin | SERP | - | $23,889 | $784 | None | $24,673 | SERP | - | $ 32,764 | $ 5,938 | None | $ 63,374 | ||||||
Alton E. Shader | SERP | - | $35,656 | $12,372 | None | $158,511 | ||||||||||||
Carlyn D. Solomon (4) | SERP | - | $59,887 | $6,652 | None | $112,228 |
We maintain a 401(k) Savings Plan |
Amounts represent earnings on the Registrant’s SERP balances for the fiscal year. The SERP Plan’s investment approach provides for investments mirroring the employee’s investment allocation under the 401(k). |
Of the amounts shown in this column related to the SERP, all of the following amounts represent Company contributions reported in the Summary Compensation Table of this proxy statement and previous proxy statements: |
Name | Plan | Aggregate Contributions Reported in the Summary | ||
John J. Greisch | SERP | $ | ||
Steven J. Strobel | SERP | $ | ||
Alton E. Shader | SERP | $ 129,952 | ||
Carlos Alonso Marum | SERP | $ 36,343 | ||
Deborah M. Rasin | SERP | $ | ||
Event | Salary & Other Cash Payments | Accelerated Vesting of Retirement Savings Plan(2) | Accelerated Vesting of Equity Based Awards(3) | Continuance of Health & Welfare Benefits(4) | Limited Outplacement Assistance | Total | ||||||||||||||||||
John J. Greisch | ||||||||||||||||||||||||
Permanent Disability(1) | $ | 1,703,858 | $ | - | $ | 19,341,514 | $ | - | $ | - | $ | 21,045,373 | ||||||||||||
Death | $ | 2,566,558 | $ | - | $ | 19,341,514 | $ | - | $ | - | $ | 21,908,072 | ||||||||||||
Termination Without Cause | $ | 3,166,558 | $ | - | $ | 13,033,542 | $ | 5,031 | $ | 10,000 | $ | 16,215,131 | ||||||||||||
Resignation With Good Reason | $ | 3,166,558 | $ | - | $ | 13,033,542 | $ | 5,031 | $ | 10,000 | $ | 16,215,131 | ||||||||||||
Termination for Cause | $ | 84,808 | $ | - | $ | - | $ | - | $ | - | $ | 84,808 | ||||||||||||
Resignation Without Good Reason | $ | 1,066,558 | $ | - | $ | 13,033,542 | $ | - | $ | - | $ | 14,100,100 | ||||||||||||
Retirement | $ | 1,066,558 | $ | - | $ | 13,033,542 | $ | - | $ | - | $ | 14,100,100 | ||||||||||||
Steven J. Strobel | - | |||||||||||||||||||||||
Permanent Disability(1) | $ | 1,377,407 | $ | 56,310 | $ | 3,759,351 | $ | - | $ | - | $ | 5,193,068 | ||||||||||||
Death | $ | 1,379,700 | $ | 56,310 | $ | 3,759,351 | $ | - | $ | - | $ | 5,195,361 | ||||||||||||
Termination Without Cause | $ | 875,700 | $ | 56,310 | $ | - | $ | 14,982 | $ | 10,000 | $ | 956,992 | ||||||||||||
Resignation With Good Reason | $ | 875,700 | $ | 56,310 | $ | - | $ | 14,982 | $ | 10,000 | $ | 956,992 | ||||||||||||
Termination for Cause | $ | 50,400 | $ | - | $ | - | $ | - | $ | - | $ | 50,400 | ||||||||||||
Resignation Without Good Reason | $ | 371,700 | $ | - | $ | - | $ | - | $ | - | $ | 371,700 | ||||||||||||
Retirement | $ | 371,700 | $ | - | $ | - | $ | - | $ | - | $ | 371,700 | ||||||||||||
Alton E. Shader | ||||||||||||||||||||||||
Permanent Disability(1) | $ | 2,993,323 | $ | - | $ | 3,432,343 | $ | - | $ | - | $ | 6,425,666 | ||||||||||||
Death | $ | 1,288,210 | $ | - | $ | 3,432,343 | $ | - | $ | - | $ | 4,720,553 | ||||||||||||
Termination Without Cause | $ | 810,210 | $ | - | $ | - | $ | 15,028 | $ | 10,000 | $ | 835,238 | ||||||||||||
Resignation With Good Reason | $ | 810,210 | $ | - | $ | - | $ | 15,028 | $ | 10,000 | $ | 835,238 | ||||||||||||
Termination for Cause | $ | 47,800 | $ | - | $ | - | $ | - | $ | - | $ | 47,800 | ||||||||||||
Resignation Without Good Reason | $ | 332,210 | $ | - | $ | - | $ | - | $ | - | $ | 332,210 | ||||||||||||
Retirement | $ | 332,210 | $ | - | $ | - | $ | - | $ | - | $ | 332,210 | ||||||||||||
Carlos Alonso Marum | ||||||||||||||||||||||||
Permanent Disability(1) | $ | 1,619,755 | $ | 41,594 | $ | 2,409,358 | $ | - | $ | - | $ | 4,070,706 | ||||||||||||
Death | $ | 1,305,157 | $ | 41,594 | $ | 2,409,358 | $ | - | $ | - | $ | 3,756,109 | ||||||||||||
Termination Without Cause | $ | 838,157 | $ | 41,594 | $ | - | $ | 15,016 | $ | 10,000 | $ | 904,766 | ||||||||||||
Resignation With Good Reason | $ | 838,157 | $ | 41,594 | $ | - | $ | 15,016 | $ | 10,000 | $ | 904,766 | ||||||||||||
Termination for Cause | $ | 37,719 | $ | - | $ | - | $ | - | $ | - | $ | 37,719 | ||||||||||||
Resignation Without Good Reason | $ | 371,157 | $ | - | $ | - | $ | - | $ | - | $ | 371,157 | ||||||||||||
Retirement | $ | 371,157 | $ | - | $ | - | $ | - | $ | - | $ | 371,157 | ||||||||||||
Deborah M. Rasin | �� | |||||||||||||||||||||||
Permanent Disability(1) | $ | 2,327,023 | $ | 27,162 | $ | 3,487,365 | $ | - | $ | - | $ | 5,841,550 | ||||||||||||
Death | $ | 1,202,117 | $ | 27,162 | $ | 3,487,365 | $ | - | $ | - | $ | 4,716,644 | ||||||||||||
Termination Without Cause | $ | 738,117 | $ | 27,162 | $ | - | $ | 15,012 | $ | 10,000 | $ | 790,291 | ||||||||||||
Resignation With Good Reason | $ | 738,117 | $ | 27,162 | $ | - | $ | 15,012 | $ | 10,000 | $ | 790,291 | ||||||||||||
Termination for Cause | $ | 37,477 | $ | - | $ | - | $ | - | $ | - | $ | 37,477 | ||||||||||||
Resignation Without Good Reason | $ | 274,117 | $ | - | $ | - | $ | - | $ | - | $ | 274,117 | ||||||||||||
Retirement | $ | 274,117 | $ | - | $ | - | $ | - | $ | - | $ | 274,117 |
Event | Salary & Other Cash Payments | Accelerated Vesting of Stock Option and RSU Awards(2) | Continuance of Health & Welfare Benefits(3) | Limited Outplacement Assistance | Total | |||||||||||||||
John Greisch | ||||||||||||||||||||
Permanent Disability(1) | $ | 2,471,987 | 17,797,907 | 22,862 | $ | 20,292,756 | ||||||||||||||
Death | $ | 1,739,985 | 17,797,907 | 22,862 | $ | 19,560,754 | ||||||||||||||
Termination Without Cause | $ | 3,299,985 | 12,587,177 | 22,862 | 10,000 | $ | 15,920,024 | |||||||||||||
Resignation With Good Reason | $ | 3,299,985 | 12,587,177 | 22,862 | 10,000 | $ | 15,920,024 | |||||||||||||
Termination for Cause | $ | 83,192 | 12,587,177 | - | $ | 12,670,369 | ||||||||||||||
Resignation Without Good Reason | $ | 1,239,985 | 12,587,177 | - | $ | 13,827,162 | ||||||||||||||
Retirement | $ | 1,239,985 | 12,587,177 | - | $ | 13,827,162 |
Event | Salary & Other Cash Payments | Accelerated Vesting of Stock Option and RSU Awards(2) | �� | Continuance of Health & Welfare Benefits(3) | Limited Outplacement Assistance | Total | ||||||||||||||
Steven Strobel | ||||||||||||||||||||
Permanent Disability(1) | $ | 1,871,392 | 2,473,970 | 19,296 | $ | 4,364,659 | ||||||||||||||
Death | $ | 998,242 | 2,473,970 | 19,296 | $ | 3,491,509 | ||||||||||||||
Termination Without Cause | $ | 987,242 | - | 19,296 | 10,000 | $ | 1,016,538 | |||||||||||||
Resignation With Good Reason | $ | 987,242 | - | 19,296 | 10,000 | $ | 1,016,538 | |||||||||||||
Termination for Cause | $ | 48,900 | - | - | $ | 48,900 | ||||||||||||||
Resignation Without Good Reason | $ | 498,242 | - | - | $ | 498,242 | ||||||||||||||
Retirement | $ | 498,242 | - | - | $ | 498,242 |
Event | Salary & Other Cash Payments | Accelerated Vesting of Stock Option and RSU Awards(2) | Continuance of Health & Welfare Benefits(3) | Limited Outplacement Assistance | Total | |||||||||||||||
Deborah Rasin | ||||||||||||||||||||
Permanent Disability(1) | $ | 2,693,452 | 1,992,165 | 14,952 | $ | 4,700,570 | ||||||||||||||
Death | $ | 753,436 | 1,992,165 | 14,952 | $ | 2,760,554 | ||||||||||||||
Termination Without Cause | $ | 590,936 | - | 14,952 | 10,000 | $ | 615,888 | |||||||||||||
Resignation With Good Reason | $ | 590,936 | - | 14,952 | 10,000 | $ | 615,888 | |||||||||||||
Termination for Cause | $ | 36,346 | - | - | $ | 36,346 | ||||||||||||||
Resignation Without Good Reason | $ | 253,436 | - | - | $ | 253,436 | ||||||||||||||
Retirement | $ | 253,436 | - | - | $ | 253,436 |
Event | Salary & Other Cash Payments | Accelerated Vesting of Stock Option and RSU Awards(2) | Continuance of Health & Welfare Benefits(3) | Limited Outplacement Assistance | Total | |||||||||||||||
Alton Shader | ||||||||||||||||||||
Permanent Disability(1) | $ | 3,558,396 | 3,532,032 | 21,246 | $ | 7,111,674 | ||||||||||||||
Death | $ | 1,010,669 | 3,532,032 | 21,246 | $ | 4,563,947 | ||||||||||||||
Termination Without Cause | $ | 974,669 | - | 21,246 | 10,000 | $ | 1,005,916 | |||||||||||||
Resignation With Good Reason | $ | 974,669 | - | 21,246 | 10,000 | $ | 1,005,916 | |||||||||||||
Termination for Cause | $ | 46,400 | - | - | $ | 46,400 | ||||||||||||||
Resignation Without Good Reason | $ | 510,669 | - | - | $ | 510,669 | ||||||||||||||
Retirement | $ | 510,669 | - | - | $ | 510,669 |
Event | Salary & Other Cash Payments | Accelerated Vesting of Stock Option and RSU Awards(2) | Continuance of Health & Welfare Benefits(3) | Limited Outplacement Assistance | Total | |||||||||||||||
Carlyn Solomon(4) | ||||||||||||||||||||
Permanent Disability(1) | $ | 2,579,090 | 7,044,266 | 21,246 | $ | 9,644,602 | ||||||||||||||
Death | $ | 991,648 | 7,044,266 | 21,246 | $ | 8,057,160 | ||||||||||||||
Termination Without Cause | $ | 1,121,648 | - | 21,246 | 10,000 | $ | 1,152,895 | |||||||||||||
Resignation With Good Reason | $ | 1,121,648 | - | 21,246 | 10,000 | $ | 1,152,895 | |||||||||||||
Termination for Cause | $ | 63,000 | - | - | $ | 63,000 | ||||||||||||||
Resignation Without Good Reason | $ | 491,648 | - | - | $ | 491,648 | ||||||||||||||
Retirement | $ | 491,648 | - | - | $ | 491,648 |
(1) | Benefits provided under our disability plans are based on various circumstances including the NEO meeting certain eligibility requirements. Our disability plans are fully insured; therefore, claim payments are reviewed and processed by our |
(2) | The amounts indicated represent the unvested portion of Company contributions in the SERP that immediately would become vested upon death, disability termination without cause or resignation with good reason. |
(3) | The amounts indicated represent the intrinsic value of all unvested non-qualified stock options that would have become immediately vested and exercisable upon permanent disability or death or the market value of all unvested RSUs and PSUs that would have vested immediately and been distributed upon permanent disability or death. The amounts were calculated based on the closing |
Amounts represent the dollar value of the incremental cost to Hill-Rom by providing continuing health and life insurance coverage based on the individual’s selected coverage in effect immediately before the hypothetical termination. |
Name | Salary | Incentive Comp. | Continuation of Health and Welfare Benefits(1) | Vacation Benefits | Retirement Savings Plan(2) | Limited Outplacement Assistance | Acceleration of Equity Based Awards(3) | Effect of Modified Economic Cut-Back | Total | |||||||||||||||||||||||||||
John J. Greisch | $ | 3,150,000 | $ | 1,155,000 | $ | 15,094 | $ | 84,808 | $ | 1,046,338 | $ | 10,000 | $ | 21,597,904 | $ | - | $ | 27,059,145 | ||||||||||||||||||
Steven J. Strobel | $ | 1,008,000 | $ | 378,000 | $ | 29,963 | $ | 50,400 | $ | 56,310 | $ | 10,000 | $ | 4,236,060 | $ | - | $ | 5,768,733 | ||||||||||||||||||
Alton E. Shader | $ | 956,000 | $ | 334,600 | $ | 30,056 | $ | 47,800 | $ | - | $ | 10,000 | $ | 3,848,901 | $ | - | $ | 5,227,358 | ||||||||||||||||||
Carlos Alonso Marum | $ | 934,000 | $ | 333,438 | $ | 30,031 | $ | 37,719 | $ | 41,594 | $ | 10,000 | $ | 2,779,887 | $ | (94,005 | ) | $ | 4,072,664 | |||||||||||||||||
Deborah M. Rasin | $ | 928,000 | $ | 278,400 | $ | 30,024 | $ | 37,477 | $ | 27,162 | $ | 10,000 | $ | 3,877,750 | $ | - | $ | 5,188,813 |
Acceleration of Stock Based Awards | ||||||||||||||||||||||||||||||||||||||||||||
Name | Salary | Incentive Comp. | Continuation of Health and Welfare Benefits | Vacation Benefits | Retirement Savings Plan Benefits | Limited Outplacement Assistance | Continuation of Term Life Insurance Coverage | Stock Options (1) | RSUs (2) | Performance Based Awards (3) | Total | |||||||||||||||||||||||||||||||||
John J. Greisch | ||||||||||||||||||||||||||||||||||||||||||||
With termination | $ | 3,090,000 | $ | 1,133,000 | $ | 24,225 | $ | 83,192 | $ | 1,959,044 | $ | 10,000 | $ | 11,880 | $ | 3,927,264 | $ | 7,813,338 | $ | 6,057,306 | $ | 24,109,249 | ||||||||||||||||||||||
Without termination* | ||||||||||||||||||||||||||||||||||||||||||||
Steven J. Strobel | ||||||||||||||||||||||||||||||||||||||||||||
With termination | $ | 571,419 | $ | 214,282 | $ | 16,747 | $ | 48,900 | $ | 78,954 | $ | 5,843 | $ | 3,046 | $ | 423,016 | $ | 627,168 | $ | 779,307 | $ | 2,768,682 | ||||||||||||||||||||||
Without termination* | ||||||||||||||||||||||||||||||||||||||||||||
Deborah Rasin | ||||||||||||||||||||||||||||||||||||||||||||
With termination | $ | 900,000 | $ | 202,500 | $ | 28,372 | $ | 36,346 | $ | 24,673 | $ | 10,000 | $ | 2,760 | $ | 222,994 | $ | 1,253,050 | $ | 516,107 | $ | 3,196,802 | ||||||||||||||||||||||
Without termination* | ||||||||||||||||||||||||||||||||||||||||||||
Alton Shader | ||||||||||||||||||||||||||||||||||||||||||||
With termination | $ | 928,000 | $ | 324,800 | $ | 27,066 | $ | 46,400 | $ | 158,511 | $ | 10,000 | $ | 1,200 | $ | 980,867 | $ | 1,637,892 | $ | 1,136,775 | $ | 5,251,511 | ||||||||||||||||||||||
Without termination* | ||||||||||||||||||||||||||||||||||||||||||||
Carlyn D. Solomon (4) | ||||||||||||||||||||||||||||||||||||||||||||
With termination | $ | 1,260,000 | $ | 504,000 | $ | 25,266 | $ | 63,000 | $ | 112,228 | $ | 10,000 | $ | 5,160 | $ | 858,455 | $ | 3,635,127 | $ | 2,550,725 | $ | 9,023,961 | ||||||||||||||||||||||
Without termination* |
(1) | Includes health and similar welfare benefits as well as life insurance benefit. |
(2) | For the CEO, this represents the cash payment of an amount equal to three times the amounts accrued for the twelve months immediately prior to the termination under the SERP. For Messrs. Strobel and Alonso, as well as Ms. Rasin, this represent the unvested portion of company contributions in the SERP that immediately would become vested upon death, disability termination without cause or termination with good reason. |
The amounts indicated represent the intrinsic value of all unvested non-qualified stock options, |
Director Compensation |
Name | Fees Earned or Paid in Cash (1) | Stock Awards (2) | Option Awards | All Other Compensation (3) | Total | |||||||||||||||
Rolf A. Classon | $ | 166,000 | $ | 220,061 | $ | - | $ | 144 | $ | 386,205 | ||||||||||
William G. Dempsey | $ | 83,000 | $ | 180,056 | $ | - | $ | 144 | $ | 263,200 | ||||||||||
Gary L. Ellis* | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Stacy Enxing Seng | $ | 77,500 | $ | 180,056 | $ | - | $ | 144 | $ | 257,700 | ||||||||||
Mary Garrett* | $ | 42,250 | $ | 180,056 | $ | - | $ | 60 | $ | 225,366 | ||||||||||
James R. Giertz | $ | 83,000 | $ | 180,056 | $ | - | $ | 144 | $ | 263,200 | ||||||||||
Charles E. Golden | $ | 79,000 | $ | 180,056 | $ | - | $ | 144 | $ | 259,200 | ||||||||||
William H. Kucheman | $ | 87,500 | $ | 180,056 | $ | - | $ | 144 | $ | 267,700 | ||||||||||
Ronald A. Malone | $ | 101,000 | $ | 180,056 | $ | - | $ | 144 | $ | 281,200 | ||||||||||
Nancy M. Schlichting* | $ | 41,250 | $ | 180,056 | $ | - | $ | 60 | $ | 221,366 |
Name | Fees Earned or Paid in Cash (1) | Stock Awards (2) | Option Awards | All Other Compensation (3) | Total | |||||
Rolf A. Classon | $ 153,000 | $ 200,059 | - | $ 216 | $ 353,275 | |||||
William G. Dempsey | $ 72,500 | $ 160,068 | - | $ 216 | $ 232,784 | |||||
Stacy Enxing Seng | $ 72,500 | $ 160,068 | - | $ 216 | $ 232,784 | |||||
James R. Giertz | $ 72,500 | $ 160,068 | - | $ 216 | $ 232,784 | |||||
Charles E. Golden | $ 68,000 | $ 160,068 | - | $ 216 | $ 228,284 | |||||
William H. Kucheman | $ 80,500 | $ 160,068 | - | $ 216 | $ 240,784 | |||||
Ronald A. Malone | $ 93,000 | $ 160,068 | - | $ 216 | $ 253,284 | |||||
Eduardo R. Menascé | $ 77,500 | $ 160,068 | - | $ 216 | $ 237,784 |
1) | The amounts in this column include the annual retainer and the amounts earned by each non-employee director for attending |
2) | The amounts indicated represent the grant date fair value of RSUs granted to our non-employee directors during fiscal year |
3) | Amounts in this column represent the dollar value of the voluntary director life and accidental death and dismemberment insurance premiums paid by us during fiscal year |
* | Mr. Ellis was appointed to the Board on October 5, 2017 and did not receive compensation during fiscal year 2017. Ms. Garrett and Ms. Schlichting were elected to the Board on March 14, 2017. |
Equity Compensation Plan Information |
Plan Category | Number of Securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted Average exercise price of outstanding options, warrants and rights (1) (b) | Number of Securities remaining available for issuance under equity compensation plans (excluding securities reflected in column (a)) ( c) | ||||||||
Equity compensation plans approved by security holders | 3,274,166 | $37.31 | 3,918,513 | ||||||||
Equity compensation not approved by security holders(2)(3) | 7,634 | ||||||||||
Total | 3,281,800 | $37.31 | 3,918,513 | (4) |
Plan Category | Number of Securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted Average exercise price of outstanding options, warrants and rights (1) (b) | Number of Securities remaining available for issuance under equity compensation plans (excluding securities reflected in column (a)) ( c) | ||||||||||
Equity compensation plans approved by security holders | 2,815,959 | $ | 41.79 | 3,244,293 | |||||||||
Equity compensation not approved by security holders(2)(3) | 7,438 | - | |||||||||||
Total | 2,823,397 | $ | 41.79 | 3,244,293 | (4) |
1) | RSUs and PSUs are excluded when determining the weighted-average exercise price of outstanding stock options. |
2) | Under the Hill-Rom Holdings Stock Award Program, which has not been approved by security holders, shares of common stock have been granted to certain key employees. All shares granted under this program are contingent upon continued employment over specified terms. Dividends, payable in stock equivalents, accrue on the grants and are subject to the same specified terms as the original grants. Under this program, a total of |
3) | Members of the Board may elect to defer fees earned and invest them in Hill-Rom common stock under the Hill-Rom Holdings Directors' Deferred Compensation Plan, which has not been approved by shareholders. Under this program, a total of |
4) | Amount consists of |
Section 16(a) Beneficial Ownership Reporting Compliance |
Year to Date Ended September 30, 2017 | Year to Date Ended September 30, 2016 | |||||||||||||||||||||||||||||
Operating Margin1 | Income Before Income Taxes | Income Tax Expense | Diluted EPS | Operating Margin | Income Before Income Taxes | Income Tax Expense | Diluted EPS1 | |||||||||||||||||||||||
GAAP Basis | 10.0% | $ | 183.0 | $ | 50.7 | $ | 1.99 | 8.7% | $ | 138.3 | $ | 15.5 | $ | 1.86 | ||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||
Acquisition and integration costs | 0.9% | 23.5 | 9.7 | 0.21 | 1.5% | 38.9 | 11.3 | 0.41 | ||||||||||||||||||||||
Acquisition-related intangible asset amortization | 4.0% | 108.4 | 34.2 | 1.10 | 3.6% | 95.9 | 31.7 | 0.96 | ||||||||||||||||||||||
Field corrective actions | - | - | (0.2 | ) | - | - | 0.2 | (0.1 | ) | - | ||||||||||||||||||||
Litigation settlements and expenses | -0.3% | (9.4 | ) | (3.4 | ) | (0.09 | ) | - | - | - | - | |||||||||||||||||||
Special charges | 1.9% | 52.5 | 10.3 | 0.63 | 1.5% | 39.9 | 13.4 | 0.40 | ||||||||||||||||||||||
Foreign tax law change | - | - | (2.2 | ) | 0.03 | - | - | - | - | |||||||||||||||||||||
Foreign valuation allowance | - | - | - | - | - | - | 19.5 | (0.29 | ) | |||||||||||||||||||||
Debt refinancing | - | - | - | - | - | 12.9 | 4.7 | 0.12 | ||||||||||||||||||||||
Gain on disposition | - | (1.0 | ) | (0.4 | ) | (0.01 | ) | - | (10.1 | ) | (3.7 | ) | (0.10 | ) | ||||||||||||||||
Adjusted Basis | 16.3% | $ | 357.0 | $ | 98.7 | $ | 3.86 | 15.3% | $ | 316.0 | $ | 92.3 | $ | 3.38 |
HILL-ROM HOLDINGS, INC. 130 East Randolph Chicago, IL 60601 | VOTE BY INTERNET - www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. |
KEEP THIS PORTION FOR YOUR RECORDS | ||
DETACH AND RETURN THIS PORTION ONLY |
For | Withhold | For All | To withhold authority to vote for any | ||||||||
All | All | Except | individual nominee(s), mark “For All | ||||||||
The Board of Directors recommends you vote FOR the following: | Except” and write the number(s) of the nominee(s) on the line below. | ||||||||||
o | o | o | |||||||||
1. Election of Directors | |||||||||||
Nominees | |||||||||||
01 | ||||||||||||
06 Charles E. Golden 07 John J. Greisch | ||||||||||||
The Board of Directors recommends you vote FOR proposals 2 and 3. | For | Against | Abstain | |||||||||
2 To approve, by non-binding advisory vote, compensation of Hill-Rom Holdings, Inc.'s named excecutive officers. | o | o | o | |||||||||
3 Ratify the appointment of PricewaterhouseCoopers LLP as independent registered public accounting firm of Hill-Rom Holdings, Inc. for fiscal year | o | o | o | |||||||||
NOTE: Such other items of business as may properly be brought before the meeting and any postponement or adjournment thereof. | ||||||||||||
Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name, by authorized officer. | ||||||||||||
Signature [PLEASE SIGN WITHIN BOX] | Date | Signature (Joint Owners) | Date |
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Shareholders: The Combined Document is/are available at www.proxyvote.com |
PROXY | ||
This proxy is solicited by the Board of Directors | ||
The undersigned hereby appoints | ||
THIS PROXY CARD, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED. IF NO SUCH DIRECTION IS MADE BUT THE CARD IS SIGNED, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF ALL NOMINEES UNDER PROPOSAL 1, AND FOR PROPOSALS 2 AND 3, AND IN THE DISCRETION OF THE PROXIES WITH RESPECT TO SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE ANNUAL MEETING OF SHAREHOLDERS AND ANY POSTPONEMENT OR ADJOURNMENT THEREOF. | ||
Continued and to be signed on reverse side |
HILL-ROM HOLDINGS, INC. | Meeting Information Meeting Type: Annual Meeting For holders as of: January Date: March Location: Two Prudential Plaza 180 North Stetson Avenue, Suite 1630 Chicago, IL 60601 |
HILL-ROM HOLDINGS, INC. 130 East Randolph Chicago, IL 60601 | You are receiving this communication because you hold shares in the above named company. This is not a ballot. You cannot use this notice to vote these shares. This communication presents only an overview of the more complete proxy materials that are available to you on the Internet. You may view the proxy materials online at www.proxyvote.com or easily request a paper copy (see reverse side). We encourage you to access and review all of the important information contained in the proxy materials before voting. |
See the reverse side of this notice to obtain proxy materials and voting instructions. |
Proxy Materials Available to VIEW or RECEIVE: 1 . Combined Document How to View Online: |
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Voting items | |
The Board of Directors recommends you vote FOR the following: |
1. | Election of Directors |
01 | 02 Gary L. Ellis | 03 Stacy Enxing Seng | 04 Mary Garrett | ||
2 | To approve, by non-binding advisory vote, compensation of Hill-Rom Holdings, Inc.'s named excecutive officers. |
3 | Ratify the appointment of PricewaterhouseCoopers LLP as independent registered public accounting firm of Hill-Rom Holdings, Inc. for fiscal year |
NOTE: Such other items of business as may properly be brought before the meeting and any postponement or adjournment thereof. |