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Annual Meeting of Stockholders to be Held on May 20, 2021 | ||
The Notice of the |
Proposal Number | Description | Board Recommendation | Vote Required for Approval | Effect of Abstentions and Broker Non-Votes | ||||||||||
1 | Election of Directors | FOR ALL | More votes are cast “for” than “against” a nominee. | Abstentions and Broker non-votes have no effect on the outcome of the vote. | ||||||||||
2 | Advisory Vote on Named Executive Officer Compensation | FOR | More votes are cast “for” than “against” the proposal. | Abstentions and Broker non-votes have no effect on the outcome of the vote. | ||||||||||
3 | Ratification of Appointment of Ernst & Young LLP as the Company’s Independent Registered Public Accounting Firm for | FOR | More votes are cast “for” than “against” the proposal. | Abstentions have no effect on the outcome of the vote. NYSE rules permit brokers to vote uninstructed shares at their discretion on this proposal in uncontested situations. | ||||||||||
4 | Approval of the Cooper-Standard Holdings Inc. 2021 Omnibus Incentive Plan | FOR | More votes are cast “for” than “against” the proposal. | Abstentions and Broker non-votes have no effect on the outcome of the vote. |
Vote online at www.proxyvote.comuntil 11:59 p.m. Eastern Time on May 19, 2021 | Call 1-800-690-6903 until 11:59 p.m. Eastern Time on May 19, 2021 | Mail Proxy Card to: Vote Processing c/o Broadridge 51 Mercedes Way Edgewood, NY 11717 |
Director Core Competencies & Diversity |
The following matrix identifies why specific experiences, qualifications, attributes, and skills are integral to the success of Cooper Standard and how the key skills and experiences of our directors and director nominees align with those needs. A particular director or director nominee may possess additional experience, qualifications, attributes, or skills, even if not expressly indicated below. | ||||||||||||||||||||||||||
Key Skills and Experience | Board Composition | |||||||||||||||||||||||||
Industryexperience isimportant to providing relevant understanding of our business, strategy, and marketplace dynamics. | 9/10 | |||||||||||||||||||||||||
Leadershipexperienceis important to providing the corporation with unique insights on developing talent, a productive work culture, and strategy in solving problems in large, complex organizations. | 10/10 | |||||||||||||||||||||||||
Operationalexperienceis important to ensuring the corporation functions at the highest level of efficiency possible. | 8/10 | |||||||||||||||||||||||||
Corporate Financeexperience is important in overseeing accurate financial reporting, informed decision making on value-adding initiative, and robust auditing. | 7/10 | |||||||||||||||||||||||||
Mergers & Acquisitionsexperience is critical to strategically pursuing complementary acquisitions and joint ventures that enhance our customer base, geographic penetration, scale and technology. | 10/10 | |||||||||||||||||||||||||
International Businessexperience is critical to cultivating and sustaining business and governmental relationships internationally and providing oversight of our multinational operations. | 9/10 | |||||||||||||||||||||||||
Engineering & Material Scienceexperience is critical to ensuring we are able to provide our customers with market-leading solutions with predictable quality that meet and exceed expectations. | 5/10 | |||||||||||||||||||||||||
Production & Manufacturing experience is critical to ensuring optimal processes are used in the creation of our products. | 7/10 | |||||||||||||||||||||||||
Innovation & Technology Strategyexperience is integral to furthering our commitment to having a culture that encourages innovative ideas that are translated into development of new and advanced technologies. | 6/10 | |||||||||||||||||||||||||
Management of Intellectual Propertyexperience is integral to protecting the value of our ideas and technologies that provide significant competitive advantages and contribute to our global leadership position in various markets. | 6/10 |
Director Recruitment Process |
Process The Board is responsible for selecting its own members and recommending them for election by the stockholders. The Board delegates the screening process to the Nominating and Corporate Governance Committee of the Board (the “Nominating and Corporate Governance Committee”). The Nominating and Corporate Governance Committee, with the active involvement and input from the Chairman and CEO and other members of the Board, as appropriate, will consider candidates recommended by stockholders, management, members of the Board, and other sources as necessary, including search firms it may engage to assist in the identification and evaluation of qualified director candidates. The procedures for a stockholder to nominate director candidates are described under “Submitting Stockholder Proposals and Nominations for the 2022 Annual Meeting” in this proxy statement. The Nominating and Corporate Governance Committee will evaluate candidates recommended by the stockholders using the same criteria that it uses in evaluating any other candidate. The Nominating and Corporate Governance Committee is responsible for reviewing with the Board, on an annual basis, the appropriate skills and characteristics required of Board members considering current Board composition, Company strategy and all relevant facts and circumstances at that time. In identifying and evaluating the suitability nominees for director, the Nominating and Corporate Governance Committee takes into account the applicable requirements for directors under the Exchange Act and the NYSE listing rules. In addition, the Nominating and Corporate Governance Committee considers other criteria it deems appropriate and which may vary over time depending on the Board’s needs, including criteria such as automotive or manufacturing industry experience, general understanding of various business disciplines (e.g., marketing, finance, etc.), the Company’s business environment, educational and professional background, analytical ability, diversity of experience and viewpoint, and willingness to devote adequate time to Board duties. Director candidates should demonstrate commitment to the highest personal and professional ethical standards, integrity, and the core values of the Company and will be evaluated on their ability to consider and balance the legitimate interests and concerns of the Company’s stockholders and other stakeholders effectively, consistently, and appropriately in reaching decisions. The Company’s Corporate Governance Guidelines also require that the potential pool of Board candidates reflects diversity in gender, race, ethnic background, country of citizenship, and professional experience.The Board evaluates each individual in the context of the Board as a whole, with the objective of retaining a group that can best enhance the Company’s success and represent the interests of stockholders and other stakeholders through sound judgment. The Nominating and Corporate Governance Committee will present its recommendations for director nominees to the Board of Directors who will analyze the committee’s findings and select the nominees to be presented to the stockholders for a vote at the annual meeting of the stockholders. |
Nominees |
John G. Boss (Independent Director) | |||||
Professional Experience: Until his retirement in March 2020, Mr. Boss was the president and chief executive officer of Momentive Performance Materials Inc. (“MPM”), a global producer of silicones, quartz and specialty ceramic materials, serving in this capacity for 6 years. Mr. Boss also served as a director of MPM Holdings Inc. from October 2014 to March 2020 and served as President of the Silicones & Quartz Division when joining MPM in March 2014 to December 2014. Mr. Boss’ career spans more than 30 years in the specialty chemicals and materials industry, including various executive leadership positions with Honeywell International, a producer of commercial, industrial and consumer products. Mr. Boss also serves on the board of directors of Wabash National Corporation, where he serves on the Compensation and Nomination and Governance Committees, and Libbey, Inc., where he serves on the Audit Committee. Mr. Boss has a Master of Business Administration degree in Marketing and Finance from Rutgers Graduate School of Management in 1996 and a Bachelor’s Degree in Mechanical Engineering from West Virginia University in 1981. Skills and Experience: Industry/ Leadership/ Operational/ Corporate Finance/ Mergers & Acquisitions/ International Business/ Engineering & Material Science/ Production & Manufacturing/ Innovation & Technology Strategy/ Management of Intellectual Property Committees: Innovation and Business Diversification Other Current Public Company Directorships: Wabash National Corporation Former Public Company Directorships (past 5 years): MPM Holdings Inc. | |||||
Director Since: 2020 Age: 61 |
Jeffrey S. Edwards (Chairman) | ||||||
Corporate Governance Committees. Prior to joining Cooper Standard, Edwards earned a Bachelor of Science degree in business administration in 1984 from Clarion University in Pennsylvania. He has also completed an executive training program at INSEAD, an international graduate business school and research institution. Skills and Other Current Public Company Directorships: Standex International Corp. Former Public Company Directorships (past 5 years): None | ||||||
Director Since: 2012 Age: 58 |
Richard J. Freeland (Independent Director) | |||||
Professional Experience: Mr. Freeland served as president and chief operating officer of Cummins Inc., a global manufacturer of engines, power systems, and related components, from July 2014 to October 2019, prior to which he served in various senior leadership positions, including vice president and president of the Engine Business from 2010 to 2014, president of the Components Group from 2008 to 2010, and president of Worldwide Distribution Business from 2005 to 2008. Mr. Freeland serves on the board of directors of Valvoline Inc., where he serves on the Compensation and Governance and Nominating Committees, and on the Purdue University, Krannert School of Management Advisory Council. Mr. Freeland received a Bachelor of Science degree from Purdue University in 1979 and a Master of Business Administration degree from Indiana University in 1987. Skills and Experience: Industry/ Leadership/ Operational/ Mergers & Acquisitions/ International Business/ Production & Manufacturing/ Innovation & Technology Strategy/ Management of Intellectual Property Committees: Nominating and Corporate Governance Other Current Public Company Directorships: Valvoline Inc. Former Public Company Directorships (past 5 years): Cummins Inc. and Sauer-Danfross | |||||
Director Since: 2020 Age: 63 |
Adriana E. Macouzet-Flores (Independent Director) | |||||
Professional Experience: Ms. Macouzet-Flores is vice president, Latin America and PMC general manager, Latin America of PPG Industries de Mexico, S.A. de C.V., a subsidiary of PPG Industries Inc., a manufacturer and distributer of a broad range of paints, coatings and specialty materials, prior to which she served as its general manager, Latin America North and general manager, Automotive OEM Coatings from January 2012 to June 2017. Ms. Macouzet-Flores held several other positions of increasing responsibility at PPG Industries since she started with the company in 1989. Ms. Macouzet-Flores has over 25 years of leadership experience in multinational settings. She earned an undergraduate degree in chemical engineering from Universidad La Salle, Mexico City; Mexico City, Mexico, and has completed executive training courses in Finance Management at University of Michigan Ross School of Business; Corporate Strategy at The University of Chicago Booth School of Business; and Women on Boards at Harvard Business School. Skills and Experience: Industry/ Leadership/ Operational/ Mergers & Acquisitions/ International Business/ Engineering & Material Science/ Production & Manufacturing/ Innovation & Technology Strategy/ Management of Intellectual Property Committees: Innovation and Business Diversification Other Current Public Company Directorships: None Former Public Company Directorships (past 5 years): None | |||||
Director Since: 2020 Age: |
David J. Mastrocola (Lead Independent Director) | ||||||
Skills and Committees: Compensation Other Current Public Company Directorships: None Former Public Company Directorships (past 5 years): | ||||||
Lead Director Since: Age: 59 |
Justin E. Mirro (Independent Director) | ||||||
Skills and Committees: Other Current Public Company Directorships: Former Public Company Directorships (past 5 years): | ||||||
Director Since: 2015 Age: |
Robert J. Remenar (Independent Director) | ||||||
Skills and Committees: Compensation Other Current Public Company Directorships: Former Public Company Directorships (past 5 years): Kensington Capital Acquisition Corp.; PKC Group Plc (became private in 2017) | ||||||
Director Since: 2015 Age: |
Sonya F. Sepahban (Independent Director) | ||||||
Skills and Committees: Other Current Public Company Directorships: None Former Public Company Directorships (past 5 years): None | ||||||
Age: 60 |
Thomas W. Sidlik (Independent Director) | ||||||
Skills and : Industry/ Leadership/ Operational/ Corporate Finance/ Mergers & Acquisitions/ International Business Committees: Nominating and Corporate Governance Other Current Public Company Directorships: None Former Public Company Directorships (past 5 years): Delphi Automotive Inc., Aptiv PLC | ||||||
Director Since: 2014 Age: |
Stephen A. Van Oss (Independent Director) | ||||||
Skills and Committees: Audit Other Current Public Company Directorships: None Former Public Company Directorships (past 5 years): | ||||||
Director Since: 2008 Age: |
þ | our nominees. | |||
Corporate Governance Principles and Code of Conduct |
Corporate Responsibility |
Board of Directors |
Committee | Primary Areas of Risk Oversight | |||||||
Audit Committee | • | Reviews policies with respect to risk assessment and risk management, including cybersecurity, the Company’s major litigation, and financial risk exposures and the steps management has taken to monitor and control such exposures. | ||||||
• | Reviews our system of disclosure controls and system of internal controls over financial reporting. | |||||||
• | Reviews our compliance with legal and regulatory requirements. | |||||||
Compensation Committee | • | Reviews our compensation programs and practices and determines whether any such programs or practices create risks that are likely to have any material adverse effect on the Company and, if necessary, recommends changes to our compensation programs to eliminate such risks. | ||||||
Nominating and Corporate Governance Committee | • | Reviews and oversees risks related to our governance structure and processes, related party transactions, and our legal and ethical compliance programs, including our Code of Conduct. | ||||||
Innovation and Business Diversification Committee | • | Reviews and oversees risks related to Company's diversification and innovation strategy, including pursuits of new and innovative processes, products, markets and business models. |
Questionnaire | » | Questionnaire enables candid director feedback. | ||||||
Board Assessments & Discussions | » | During an executive session of the Board led by the Chair of the Nominating and Governance Committee and the lead director, the questionnaires are used to facilitate assessments of the following areas: •Individual performances of the directors, including in the capacity of lead director and committee chair •Board and committee operations •Board performance •Committee performance | ||||||
Follow-Up | » | Policies and practices updated as appropriate. |
Board Committees and Their Functions |
Directors | Audit Committee | Compensation Committee | Nominating and Corporate Governance Committee | Innovation and Business Diversification Committee | ||||||||||
John G. Boss | ● | |||||||||||||
Jeffrey S. Edwards * | ||||||||||||||
Richard J. Freeland | ● | |||||||||||||
Adriana E. Macouzet-Flores | ● | |||||||||||||
David J. Mastrocola ** | ● | |||||||||||||
Justin E. Mirro | ● | ● | ||||||||||||
Robert J. Remenar† | ● | C | ||||||||||||
Sonya F. Sepahban | ● | C | ||||||||||||
Thomas W. Sidlik | ● | C | ||||||||||||
Stephen A. Van Oss† | C | ● | ||||||||||||
Number of Meetings in 2020 | 9 | 8 | 5 | 6 |
Audit Committee | |||||||||||||||||
Chair Stephen A. Van Oss Members Robert J. Remenar Thomas W. Sidlik | Committee’s Key Responsibilities | ||||||||||||||||
•Select independent registered public accounting firm •Oversee accounting and financial reporting processes and the annual audit and quarterly review of financial statements •Oversee compliance with legal and regulatory requirements •Review and evaluate the independence, qualifications, and performance of our independent auditors and the performance of our internal audit function •Review and oversee our system of internal controls regarding finance, accounting, and legal compliance | |||||||||||||||||
Audit Committee Financial Expertise and Independence | |||||||||||||||||
Our Board has determined that each member of the Audit Committee is financially literate and that Messrs. Van Oss and Remenar qualify as audit committee financial experts as defined by the rules and regulations of the Securities and Exchange Commission (“SEC”). |
Compensation Committee | |||||||||||||||||
Chair Robert J. Remenar Members David J. Mastrocola Sonya F. Sepahban Stephen A. Van Oss | Committee’s Key Responsibilities | ||||||||||||||||
•Review and approve corporate goals, objectives, and other criteria relevant to the chief executive officer’s and the other executive officers’ compensation •Evaluate the performance of all executive officers and determine their compensation •Establish overall compensation philosophy and review and approve executive compensation programs, and assess related risks •Review and approve any employment or severance arrangement with executive officers •Review and approve equity-based compensation plans and awards made pursuant to such plans •Review and approve equity-based compensation plans and awards made pursuant to such plans •Oversee the Company’s employee benefit plans, including the delegation of responsibility for such programs to the Company’s Benefit Plan Committee | |||||||||||||||||
Compensation Consultant | |||||||||||||||||
The Compensation Committee has engaged FW Cook as its independent compensation consultant. The consultant reports directly to the Compensation Committee, including with respect to management’s recommendations of compensation programs and awards. The consultant advises the Compensation Committee on a number of compensation-related considerations, including compensation practices among our peer group companies, pay-for-performance measures, competitiveness of pay levels, program design, and market trends. Other than consulting on executive compensation matters, FW Cook has performed no other services for the Compensation Committee or The Compensation Committee maintains a formal process to ensure the independence of any executive compensation advisor engaged by the Compensation Committee, including consideration of all factors relevant to the advisor’s independence from management as required by applicable NYSE listing standards. In connection with its engagement of FW Cook, the Compensation Committee considered these factors and determined that FW Cook qualified as independent and that its engagement does not raise any conflict of interest. |
Nominating and Corporate Governance Committee | |||||||||||||||||
Chair Thomas W. Sidlik Members Richard J. Freeland Justin E. Mirro | Committee’s Key Responsibilities | ||||||||||||||||
•Identify and evaluate individuals qualified to become members of the Board consistent with criteria approved by the Board •Select or recommend to the Board the director nominees to stand for election by the stockholders or to fill vacancies on the Board and board committee memberships •Develop and ensure compliance with corporate governance principles and practices applicable to the Company •Review our legal compliance and ethics programs and policies •Review and make recommendations to the Board on director compensation, as well as indemnification and insurance matters •Review and make recommendations to the Board on director compensation, as well as indemnification and insurance matters •Oversee the annual performance evaluation of the Board and its committees |
Innovation and Business Diversification Committee | |||||||||||||||||
Chair Sonya F. Sepahban Members John G. Boss Adriana E. Macouzet- Flores Justin E. Mirro | Committee’s Key Responsibilities | ||||||||||||||||
•Work to understand megatrends affecting the automotive industry and its adjacent markets and provide insights, and together with Company management assess any impacts on the Company’s innovation and business diversification strategy, competitive landscape, and opportunities and risks, including start-up investments and M&A activities •Advise management regarding the Company's innovation and business diversification strategy, implementation plans and performance targets •Review and advise management regarding the Company's commercialization strategy for new products in its core market, adjacent markets, and business model innovations |
Director Compensation |
Name (a) | Fees Earned or Paid in Cash (b) | Stock Awards (c)1 | Option Awards ($) (d)2 | All Other Compensation ($) (g) | Total (h) | ||||||||||||||
Sean O. Mahoney | $80,000 | $97,588 | — | — | $177,588 | ||||||||||||||
David J. Mastrocola | $100,000 | 3 | $97,588 | — | — | $197,588 | |||||||||||||
Justin E. Mirro | $80,000 | $97,588 | — | — | $177,588 | ||||||||||||||
Robert J. Remenar | $86,209 | 4 | $97,588 | — | — | $183,797 | |||||||||||||
Sonya F. Sepahban | $80,000 | $97,588 | — | — | $177,588 | ||||||||||||||
Thomas W. Sidlik | $90,000 | 5 | $97,588 | — | — | $187,588 | |||||||||||||
Stephen A. Van Oss | $90,000 | 6 | $97,588 | — | — | $187,588 | |||||||||||||
Molly Zhang | $49,670 | 7 | $97,588 | — | — | $147,259 | |||||||||||||
Glenn R. August | $34,121 | 8 | — | — | — | $34,121 |
Name (a) | Fees Earned or Paid in Cash (b) | Stock Awards (c)1 | Option Awards ($) (d) | All Other Compensation ($) (g) | Total (h) | |||||||||||||||
John G. Boss | $61,202 | 2 | $120,005 | — | — | $181,207 | ||||||||||||||
Richard J. Freeland | $61,202 | 3 | $120,005 | — | — | $181,207 | ||||||||||||||
Adriana E. Macouzet-Flores | $61,202 | 4 | $120,005 | — | — | $181,207 | ||||||||||||||
David J. Mastrocola | $120,000 | 5 | $120,005 | — | — | $240,005 | ||||||||||||||
Justin E. Mirro | $100,000 | $120,005 | — | — | $220,005 | |||||||||||||||
Robert J. Remenar | $110,000 | 6 | $120,005 | — | — | $230,005 | ||||||||||||||
Sonya F. Sepahban | $106,120 | 7 | $120,005 | — | — | $226,125 | ||||||||||||||
Thomas W. Sidlik | $110,000 | 8 | $120,005 | — | — | $230,005 | ||||||||||||||
Stephen A. Van Oss | $110,000 | 9 | $120,005 | — | — | $230,005 | ||||||||||||||
Matthew J. Simoncini | $38,934 | 10 | — | — | — | $38,934 | ||||||||||||||
Molly Zhang | $38,934 | 11 | — | — | — | $38,934 |
1 | The amount shown in column (c) represents the grant-date fair value |
Stock Ownership and Related Stockholder Matters |
Common Stock Beneficially Owned | |||||||||||||||||
Named Executive Officers and Directors | Number of Common Shares1 | Common Shares Underlying Exercisable Options2 | Common Shares Underlying Restricted Stock Units3 | Total Number of Shares of Common Stock Beneficially Owned | Percentage of Common Stock Beneficially Owned | ||||||||||||
Jeffrey S. Edwards 4 | 131,411 | 221,783 | — | 353,194 | 2.1 | % | |||||||||||
Jonathan P. Banas | 3,857 | 23,067 | — | 26,924 | * | ||||||||||||
D. William Pumphrey, Jr. | 29,308 | 69,882 | — | 99,190 | * | ||||||||||||
Jeffrey DeBest5 | 9,006 | 17,469 | — | 26,475 | * | ||||||||||||
Larry E. Ott | 14,270 | 11,981 | — | 26,251 | * | ||||||||||||
Juan Fernando de Miguel Posada | 4,631 | 21,456 | — | 26,087 | * | ||||||||||||
John G. Boss | 25,000 | — | — | 25,000 | * | ||||||||||||
Richard J. Freeland | — | — | 12,699 | 12,699 | * | ||||||||||||
Adriana E. Macouzet-Flores | — | — | — | — | * | ||||||||||||
David J. Mastrocola | 8,115 | — | 20,878 | 28,993 | * | ||||||||||||
Justin E. Mirro | 9,541 | — | 17,161 | 26,702 | * | ||||||||||||
Robert J. Remenar | 10,824 | — | — | 10,824 | * | ||||||||||||
Sonya F. Sepahban | 3,357 | — | 15,295 | 18,652 | * | ||||||||||||
Thomas W. Sidlik | 4,750 | — | 20,878 | 25,628 | * | ||||||||||||
Stephen A. Van Oss | 17,846 | — | 20,878 | 38,724 | * | ||||||||||||
Current directors and executive officers as a group (18 persons) | 269,738 | 369,514 | 107,789 | 747,041 | 4.3 | % | |||||||||||
Significant Owners | |||||||||||||||||
BlackRock, Inc.6 | 2,771,670 | 16.4 | % | ||||||||||||||
Thrivent Financial for Lutherans7 | 1,688,714 | 10.0 | % | ||||||||||||||
Fuller & Thaler Asset Management, Inc.8 | 1,155,703 | 6.8 | % | ||||||||||||||
The Vanguard Group9 | 1,003,613 | 5.9 | % | ||||||||||||||
Dimensional Fund Advisors LP 10 | 986,025 | 5.8 | % | ||||||||||||||
FMR LLC11 | 977,620 | 5.8 | % | ||||||||||||||
ArrowMark Colorado Holdings, LLC12 | 891,063 | 5.3 | % |
Common Stock Beneficially Owned | |||||||||||||||
Number of Common Shares1 | Common Shares Underlying Exercisable Options2 | Common Shares Underlying Restricted Stock Units3 | Total Number of Shares of Common Stock Beneficially Owned | Percentage of Common Stock Beneficially Owned | |||||||||||
Named Executive Officers and Directors | |||||||||||||||
Jeffrey S. Edwards | 100,676 | 103,125 | — | 203,801 | 1.1 | % | |||||||||
Jonathan P. Banas | — | 1,794 | — | 1,794 | * | ||||||||||
Keith D. Stephenson | 62,999 | 32,057 | — | 95,056 | * | ||||||||||
Juan Fernando de Miguel Posada4 | 10,031 | 4,155 | — | 14,186 | * | ||||||||||
Song Min Lee | 17,489 | 9,463 | — | 26,952 | * | ||||||||||
Sean O. Mahoney | — | — | 3,451 | 3,451 | * | ||||||||||
David J. Mastrocola | 8,115 | 9,731 | 4,627 | 22,473 | * | ||||||||||
Justin E. Mirro | 4,541 | — | 910 | 5,451 | * | ||||||||||
Robert J. Remenar | 3,362 | — | — | 3,362 | * | ||||||||||
Sonya F. Sepahban | 1,256 | — | — | 1,256 | * | ||||||||||
Thomas W. Sidlik | 4,750 | — | 4,627 | 9,377 | * | ||||||||||
Stephen A. Van Oss | 8,115 | 9,731 | 4,627 | 22,473 | * | ||||||||||
Molly P. Zhang | — | — | 209 | 209 | * | ||||||||||
Directors and executive officers as a group (20 persons) | 262,029 | 274,288 | 18,451 | 554,768 | 3.0 | % | |||||||||
Significant Owners | |||||||||||||||
BlackRock, Inc.5 | 2,102,030 | — | — | 2,102,030 | 11.6 | % | |||||||||
The Vanguard Group 6 | 1,835,427 | — | — | 1,835,427 | 10.2 | % | |||||||||
Silver Point Capital L.P.7 | 1,130,787 | — | — | 1,130,787 | 6.3 | % | |||||||||
AllianceBernstein L.P. 8 | 930,234 | — | — | 930,234 | 5.2 | % |
1 Includes common stock directly or indirectly owned by each listed person. 2 Includes shares underlying options exercisable on March 21, 2021, and options that become exercisable within 60 days thereafter. 20 |
John G. Boss | 12,699 | ||||
Adriana E. Macouzet-Flores | 12,699 | ||||
Robert J. Remenar | 12,699 | ||||
Larry E. Ott | 1,110 | ||||
Juan Fernando de Miguel Posada | |||||
4 The number of common shares reported for Mr. Edwards includes 13,200 shares held by an irrevocable family trust for which his spouse is a beneficiary. Mr. Edwards disclaims beneficial ownership of the stock held by the trust except to the extent of his pecuniary interest therein. 5 Mr. DeBest’s employment with the Company ended on March 1, 2021. The amount of Mr. DeBest’s holdings in the table reflect the amounts last known by the Company. 6 Based solely on the Schedule 13G filed with the SEC on January 25, 2021, BlackRock, Inc. reported being the beneficial holder of 2,771,670 shares of common stock as of December 31, 2020. BlackRock, Inc. has the sole power to vote 2,722,014 shares of common stock and the sole power to dispose of 2,771,670 shares of common stock. The address for BlackRock, Inc., is 55 East 52nd Street, New York, New York 10055. 7 Based solely on the Schedule 13G/A filed with the SEC on February 16, 2021, Thrivent Financial for Lutherans reported being the beneficial holder of 1,688,714 shares of common stock as of December 31, 2020, which represents shares held by Thrivent Financial for Lutherans in its general account and shares held in the Thrivent Defined Benefit Plan Trust for which Thrivent Financial for Lutherans serves as investment adviser. Out of the 1,688,714 shares reported, 938,291 shares were held by registered investment companies for which Thrivent Financial for Lutherans serves as investment adviser, and 685,326 shares were held by registered investment companies for which Thrivent Asset Management, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Thrivent Financial forLutherans, serves as investment adviser. As of December 31, 2020, Thrivent Financial for Lutherns had the sole power to vote 65,097 shares of common stock and the sole power to dispose of 65,097 shares of common stock; and the shared power to vote 1,623,617 shares of common stock and the shared power to dispose of 1,623,617 shares of common stock. The address for Thrivent Financial for Lutherans is 901 Marquette Avenue, Suite 2500, Minneapolis, Minnesota 55402. 8 Based solely on the Schedule 13G/A filed with the SEC on February 11, 2021, Fuller & Thaler Asset Management, Inc.reported being the beneficial holder of 1,155,703 shares of common stock as of December 31, 2020. Fuller & Thaler Asset Management, Inc. has the sole power to vote 1,125,668 shares of common stock and the sole power to dispose of 1,155,703 shares of common stock. The address for Fuller & Thaler Asset Management, Inc. is 411 Borel Avenue, Suite 300, San Mateo, CA 94402. 9 Based solely on a Schedule 13G/A filed with the SEC on February 10, 2021, The Vanguard Group, together with its subsidiaries, Vanguard Asset Management, Limited, Vanguard Fiduciary Trust Company, Vanguard Global Advisors, LLC, Vanguard Group (Ireland) Limited, Vanguard Investments Australia Ltd, Vanguard Investments Canada Inc., Vanguard Investments Hong Kong Limited, and Vanguard Investments UK, Limited, reported being the beneficial holder of 1,003,613 shares of common stock as of December 31, 2020. As of December 31, 2020, The Vanguard Group had the sole power to vote 0 shares; the sole power to dispose of 984,753 shares; the shared power to vote 11,896 shares; and the shared power to dispose of 18,860 shares of common stock. The address for The Vanguard Group is 100 Vanguard Boulevard, Malvern, Pennsylvania 19355. 10Based solely on the Schedule 13G filed with the SEC on February 12, 2021, Dimensional Fund Advisors LP reported being the beneficial holder of 986,025 shares of common stock as of December 31, 2020. Dimensional Fund Advisors LP has the sole power to vote 944,655 shares of common stock and the sole power to dispose of 986,025 shares of common stock. The address for Dimensional Fund Advisors LLP is Building One, 6300 Bee Cave Road, Austin, TX, 78746. Dimensional Fund Advisors LP serves as |
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 (excluding securities reflected in column (a)) | |||
(a)1 | (b)2 | (c) | ||||
Equity compensation plans approved by security holders | 1,062,657 | $67.14 | 2,403,783 | |||
Equity compensation plans not approved by security holders | 0 | 0 | 0 | |||
Total | 1,062,657 | 2,403,783 |
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 (excluding securities reflected in column (a)) | |||||||||||||||||
(a)1 | (b)2 | (c) | ||||||||||||||||||
Equity compensation plans approved by security holders | 1,223,032 | $62.64 | 1,420,355 | |||||||||||||||||
Equity compensation plans not approved by security holders | 0 | 0 | 0 | |||||||||||||||||
Total | 1,223,032 | 1,420,355 |
Executive Officers |
Name | Age | Position | ||||||||||||
Jeffrey S. Edwards | Chairman and Chief Executive Officer | |||||||||||||
Jonathan P. Banas | Executive Vice President and Chief Financial Officer | |||||||||||||
Executive Vice President and President, Global Automotive, and Industrial Specialty Group | ||||||||||||||
Patrick R. Clark | 48 | Senior Vice President and Chief Global Manufacturing Officer | ||||||||||||
Christopher E. Couch | 51 | Senior Vice President | ||||||||||||
Susan P. Kampe | Senior Vice President and Chief Information | |||||||||||||
Larry E. Ott | Senior Vice President and Chief Human Resources Officer | |||||||||||||
Senior Vice President, Chief Legal Officer and | ||||||||||||||
Peter C. Brusate | Vice President, Controller and Chief Accounting Officer |
Delinquent Section 16(a) Reports |
Other Matters Concerning Directors, Nominees and Executive Officers |
Communications with the Board of Directors |
þ | The Board of Directors recommends that the stockholders vote FOR Proposal 2. |
Compensation Discussion and Analysis |
Mr. Jeffrey Edwards | Chairman and Chief Executive Officer | ||||
Mr. Jonathan Banas | Executive Vice President and Chief Financial Officer | ||||
Mr. | Executive Vice President and | ||||
Mr. Jeffrey DeBest2 | Executive Vice President and President, Advanced Technology Group | ||||
Mr. | Senior Vice President and | ||||
Mr. Juan Fernando de Miguel Posada3 | Former Senior Vice President and President, | ||||
1Mr. Pumphrey, Jr. assumed responsibility of the Industrial Specialty Group in December 2020. 2Mr. DeBest’s employment with the Company ended on March 1, 2021. 3 Mr. de Miguel Posada is the Company’s former Senior Vice President and President, Strategic Projects. In accordance with Mr. de Miguel Posada’s Service Contract, the Company was required to give an 18-month notice prior to termination of his employment. Mr. de Miguel Posada’s 18-month notice period commenced on July 1, 2020, and his employment with the Company will end on December 31, 2021. COVID-19 Response In March 2020, the World Health Organization declared a global pandemic, and government officials imposed restrictions including shelter-in-place orders and the temporary closure of businesses to help mitigate the spread of COVID-19. As a result of these unprecedented circumstances, the Company had to temporarily idle select manufacturing locations during 2020, which adversely impacted the Company’s financial performance. In response to COVID-19, the Company took the below actions to combat the negative effects of the global pandemic. These actions helped to provide a safe working environment that has outperformed world-class safety benchmarks and toposition the Company to achieve profitable growth over the short- and long-term. •Promoted and prioritized safety and well-being of the Company’s employees •Added preventative measures at the Company’s manufacturing sites and facilities •Implemented a salary deferral program from May through August of 2020 (the “Salary Deferral Program”) ◦30% of base salary was deferred for the CEO and 20% for all other NEOs •Restructured and rightsized workforce •Suspended Company-wide 2021 merit program •Increased and protected liquidity •Implemented work-from-home arrangements •Increased communications with employees by way of a weekly, and later monthly, letter from the Company’s CEO |
Payout Percentage by Year of Grant | ||||||||||||||
Incentive Award | 2018 | 2019 | 2020 | 3-Year Average | ||||||||||
Annual Incentive Program | 0.0% | 0.0% | 70.0% | 23.3% | ||||||||||
Long-Term Incentive Plan | 89.0% | 0.0% | 0.0% | 29.7% |
• | American Axle & Mfg. Holdings, Inc. | • | LCI Industries (formerly Drew Industries, Inc.) | • | Timken | ||||||||||||||||||
• | Cooper Tire & Rubber | • | Linamar | • | Tower International, Inc. | ||||||||||||||||||
• | Dana Holding Incorporated | • | Martinrea International Inc. | • | |||||||||||||||||||
• | Delphi Technologies | • | Meritor, Inc. | • | Wabash National | ||||||||||||||||||
• | Gentex | • | Modine Manufacturing Co. | ||||||||||||||||||||
• | Garrett Motion | • | Terex |
2019 Base Salary | 2020 Base Salary | Increase | ||||||||||||||||||
Mr. Edwards | $1,000,000 | $1,000,000 | —% | |||||||||||||||||
Mr. Banas1 | $450,000 | $500,000 | 11.1% | |||||||||||||||||
Mr. Pumphrey, Jr.2 | $562,000 | $610,000 | 8.5% | |||||||||||||||||
Mr. DeBest3 | $500,000 | $515,000 | 3.0% | |||||||||||||||||
Mr. Ott4 | $415,000 | $450,000 | 8.4% | |||||||||||||||||
Mr. de Miguel Posada | €571,000 | €571,000 | —% |
2016 Base Salary | 2017 Base Salary | Increase | ||||
Mr. Edwards1 | $900,000 | $1,000,000 | 11.1% | |||
Mr. Banas2 | $258,000 | $400,000 | 55.0% | |||
Mr. Stephenson | $659,000 | $679,000 | 3.0% | |||
Mr. Lee | $546,000 | $562,000 | 2.9% | |||
Mr. de Miguel | €487,000 | €502,000 | 3.0% | |||
Mr. Hardt3 | $425,000 | $475,000 | 11.8% |
2017 Achievement Level | Adjusted EBITDA1 60% (000) | Award Payout as % of Award Target | ||
Below Threshold | Below $376,600 | 0% | ||
Threshold (85% of target performance) | $376,600 | 50% | ||
Target | $443,000 | 100% | ||
Superior (115% of target performance) | $509,500 | 200% |
2020 Achievement Level | Adjusted EBITDA1 (000) | Award Payout as % of Award Target | ||||||||||||
Below Threshold | Below $150,000 | 0% | ||||||||||||
Threshold (75% of Target) | $150,000 | 25% | ||||||||||||
Target | $200,000 | 100% | ||||||||||||
Superior (115% of target performance) | $230,000+ | 200% |
1Adjusted EBITDA is not a measure recognized under U.S. GAAP and is defined as net income plus income tax expense, interest expense net of interest income, depreciation and amortization, and certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted EBITDA is net of all incentive plan payouts. |
2017 Achievement Level | Operating Cash Flow2 40% (000) | Award Payout as % of Award Target | ||
Below Threshold | Below $103,200 | 0% | ||
Threshold (80% of target performance) | $103,200 | 50% | ||
Target | $129,000 | 100% | ||
Superior (120% of target performance) | $154,800 | 200% |
2017 Year- End Base Salary | Target Bonus | Achievement Factor as a Percent of Target Award | 2017 Amount Earned under AIP | |||||
Mr. Edwards | $1,000,000 | 110% | 56.0% | $616,000 | ||||
Mr. Banas | $400,000 | 65% | 56.0% | $145,600 | ||||
Mr. Stephenson | $679,000 | 75% | 56.0% | $285,180 | ||||
Mr. Lee | $562,000 | 65% | 56.0% | $204,568 | ||||
Mr. de Miguel | €502,000 | 65% | 56.0% | €182,728 | ||||
Mr. Hardt1 | $0 | 75% | 56.0% | $0 |
Number of Awards Granted in 2020 | ||||||||||||||||||||
2019 LTIP Grant Value | 2020 LTIP Grant Value | % Change from 2019 to 2020 | Performance RSUs at Target | Stock Options | Time Vested RSUs | |||||||||||||||
Mr. Edwards | $3,800,000 | $3,000,000 | -21.1% | 56,711 | 101,695 | 23,819 | ||||||||||||||
Mr. Banas | $650,000 | $630,000 | -3.1% | 11,910 | 21,356 | 5,002 | ||||||||||||||
Mr. Pumphrey, Jr. | $785,000 | $600,000 | -23.6% | 11,343 | 20,339 | 4,764 | ||||||||||||||
Mr. DeBest | $675,000 | $630,000 | -6.7% | 11,910 | 21,356 | 5,002 | ||||||||||||||
Mr. Ott | $450,000 | $380,000 | -15.6% | 7,184 | 12,882 | 3,018 | ||||||||||||||
Mr. de Miguel Posada | $733,000 | — | -100.0% | — | — | — |
Number of Shares | ||||||||
2017 LTIP Grant Value | Performance RSUs at Target | Stock Options | Time Vested RSUs | |||||
Mr. Edwards | $2,900,000 | 13,777 | 26,573 | 5,511 | ||||
Mr. Banas1 | $500,000 | 2,314 | 4,536 | 926 | ||||
Mr. Stephenson | $1,121,000 | 5,326 | 10,272 | 2,131 | ||||
Mr. Lee | $675,000 | 3,207 | 6,186 | 1,283 | ||||
Mr. de Miguel | $733,000 | 3,483 | 6,717 | 1,393 | ||||
Mr. Hardt | $575,000 | 2,732 | 5,269 | 1,093 |
• | Adient plc | • | Garrett Motion Inc. | • | Standard Motor Products Inc. | ||||||||||||||||||
• | American Axle & Manufacturing Holdings, Inc. | • | Gentex Corporation | • | Tenneco Inc. | ||||||||||||||||||
• | Aptiv PLC | • | LCI Industries | • | The Goodyear Tire & Rubber Company | ||||||||||||||||||
• | Autoliv, Inc. | • | Lear Corporation | • | TI Fluid Systems plc | ||||||||||||||||||
• | BorgWarner Inc. | • | Linamar Corporation | • | Veoneer, Inc. | ||||||||||||||||||
• | Cooper Tire & Rubber Company | • | Magna International Inc. | • | Visteon Corporation | ||||||||||||||||||
• | Dana Incorporated | • | Martinrea International Inc. |
Achievement Level | Three-Year Average Return on Invested Capital | Award Payout as % of Award Target | ||||||||||||
Below Threshold | Below 12.5% | 0% | ||||||||||||
Threshold (80% of target performance) | 12.5% | 50% | ||||||||||||
Target | 15.6% | 100% | ||||||||||||
Superior (120% of target performance) | 18.7% + | 200% |
Achievement Level | 3-Year Average Return on Invested Capital | Award Payout as % of Award Target | ||
Below Threshold | Below 7.2% | 0% | ||
Threshold (80% of target performance) | 7.2% | 50% | ||
Target | 9% | 100% | ||
Superior (120% of target performance) | 10.8% | 200% |
Performance RSUs Granted | Earnout (% of Target) | Total RSUs Earned | Share Settled (50%) | Cash Settled (50%) | ||||||
Mr. Edwards | 19,700 | 200% | 39,400 | 19,700 | $2,220,387 | |||||
Mr. Stephenson | 10,500 | 200% | 21,000 | 10,500 | $1,183,455 | |||||
Mr. de Miguel | 6,900 | 200% | 13,800 | 6,900 | $777,699 | |||||
Mr. Lee | 6,300 | 200% | 12,600 | 6,300 | $710,073 |
Positions | Stock Ownership Level (Multiple of Base Salary) | ||||||||||
Chief Executive Officer | 6X | ||||||||||
Chief | 3X | ||||||||||
2X | |||||||||||
Compensation Committee Report |
Executive Compensation |
Name and Principal Position1 | Year | Salary2 | Bonus | Stock Awards3 | Option Awards4 | Non-Equity Incentive Plan Compensation5 | Change in Pension Value and Nonqualified Deferred Compensation Earnings6 | All Other Compensation | Total | ||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | ||||||||||
Jeffrey S. Edwards, Chairman and Chief Executive Officer | 2017 | $998,077 | $0 | $2,073,074 | $885,944 | $616,000 | $0 | $281,284 | 7 | $4,854,379 | |||||||||
2016 | $899,231 | $0 | $1,733,050 | $711,040 | $1,522,620 | $0 | $518,480 | $5,384,421 | |||||||||||
2015 | $849,712 | $0 | $1,553,052 | $671,803 | $3,310,870 | $0 | $165,530 | $6,550,967 | |||||||||||
Jonathan P. Banas, Executive Vice President and Chief Financial Officer | 2017 | $349,885 | $0 | $349,397 | $149,812 | $145,600 | $0 | $53,298 | 8 | $1,047,992 | |||||||||
Keith D. Stephenson, Executive Vice President and Chief Operating Officer | 2017 | $678,615 | $0 | $801,478 | $342,468 | $285,180 | $1,476 | $265,318 | 9 | $2,374,535 | |||||||||
2016 | $658,523 | $0 | $794,600 | $325,220 | $760,157 | $1,251 | $499,487 | $3,039,238 | |||||||||||
2015 | $627,792 | $0 | $827,169 | $359,216 | $1,781,342 | $45 | $179,558 | $3,775,122 | |||||||||||
Song Min Lee, Senior Vice President and President, Asia Pacific | 2017 | $561,385 | $0 | $482,585 | $206,241 | $204,568 | $0 | $886,399 | 10 | $2,341,178 | |||||||||
2016 | $545,754 | $0 | $1,268,500 | $195,940 | $545,836 | $0 | $563,697 | $3,119,727 | |||||||||||
2015 | $529,539 | $0 | $495,176 | $215,875 | $1,158,678 | $0 | $705,261 | $3,104,529 | |||||||||||
Fernando de Miguel, Senior Vice President and President, Europe and South America | 2017 | $602,330 | $0 | $524,072 | $223,945 | $219,248 | $0 | $266,994 | 11 | $1,836,589 | |||||||||
2016 | $512,448 | $0 | $1,309,600 | $212,100 | $512,294 | $0 | $225,373 | $2,771,815 | |||||||||||
2015 | $487,907 | $0 | $540,192 | $234,872 | $1,153,527 | $0 | $226,350 | $2,642,848 | |||||||||||
Matthew W. Hardt, Executive Vice President and Chief Financial Officer | 2017 | $337,019 | $0 | $411,111 | $175,668 | $0 | $0 | $77,319 | 12 | $1,001,117 | |||||||||
2016 | $424,660 | $0 | $653,450 | $159,580 | $457,555 | $0 | $89,387 | $1,784,632 | |||||||||||
2015 | $361,539 | $0 | $371,382 | $160,611 | $364,520 | $0 | $201,998 | $1,460,050 |
Name and Principal Position(1) | Year | Salary(2) | Bonus(3) | Stock Awards(4) | Option Awards(5) | Non-Equity Incentive Plan Compensation(6) | Change in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation | Total | |||||||||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||||||||||||||||||||||
Jeffrey S. Edwards, Chairman and Chief Executive Officer | 2020 | $1,038,462 | $840,000 | $2,004,732 | $900,001 | — | — | $126,150 | (7) | $4,909,345 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $1,000,000 | — | $2,804,576 | $1,126,437 | — | — | $122,640 | $5,053,653 | ||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $980,769 | — | $2,095,392 | $907,477 | — | — | $186,569 | $4,170,207 | ||||||||||||||||||||||||||||||||||||||||||||||||
Jonathan P. Banas, Executive Vice President and Chief Financial Officer | 2020 | $516,922 | $262,500 | $421,011 | $189,001 | — | — | $61,065 | (8) | $1,450,499 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $450,000 | — | $479,858 | $192,693 | — | — | $54,455 | $1,177,006 | ||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $440,385 | — | $354,473 | $153,480 | — | — | $65,150 | $1,013,488 | ||||||||||||||||||||||||||||||||||||||||||||||||
D. William Pumphrey, Jr., Executive Vice President and President, Global Automotive, and Industrial Specialty Group | 2020 | $631,247 | $320,250 | $400,971 | $180,000 | — | — | $84,100 | (9) | $1,616,568 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $562,000 | — | $579,458 | $232,709 | — | — | $75,979 | $1,450,146 | ||||||||||||||||||||||||||||||||||||||||||||||||
Jeffrey A. DeBest, Executive Vice President and President, Advanced Technology Group | 2020 | $534,117 | $234,325 | $421,011 | $189,001 | — | — | $97,128 | (10) | $1,475,582 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $500,000 | — | $646,531 | $200,104 | — | — | $67,950 | $1,414,585 | ||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $398,077 | — | $1,021,745 | $188,309 | — | — | $54,333 | $1,662,464 | ||||||||||||||||||||||||||||||||||||||||||||||||
Larry E. Ott, Senior Vice President and Chief Human Resources Officer | 2020 | $465,693 | $204,750 | $253,971 | $114,006 | — | — | $67,387 | (11) | $1,105,807 | ||||||||||||||||||||||||||||||||||||||||||||||
Juan Fernando de Miguel Posada, Former Senior Vice President, Strategic Projects | 2020 | $316,094 | $287,645 | — | — | — | — | $619,137 | (12) | $1,222,876 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | $580,436 | — | $541,071 | $217,289 | — | — | $275,374 | $1,614,170 | ||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $592,248 | — | $451,854 | $195,644 | — | — | $256,110 | $1,495,856 |
2Amounts shown reflect the NEO's annual base salary earned during the fiscal year and are not reduced to reflect the NEOs’ elections, if any, to defer receipt of salary into the CSA Savings Plan for salaried U.S. employees. 3Amounts shown in column (d) reflect the NEO’s discretionary bonus earned during the fiscal year. Due to the global pandemic in 2020, the Company did not meet the threshold Adjusted EBITDA target under the Company's annual incentive award program. In light of the extraordinary achievements of the Company’s NEOs during 2020 as discussed further above, however, the Compensation Committee of the Board of Directors approved a bonus payout representing 36 |
5The amounts shown in column (f) represent the aggregate grant-date fair value of stock option awards granted under the 2017 Plan on February 13, 2020 and are computed in accordance with ASC Topic 718. Assumptions used in the calculation of these amounts are included in Note 21 to the Company’s audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Mr. de Miguel Posada did not receive option awards in 2020. 6The amounts shown in column (g) typically represents the bonus payments under the Company’s annual incentive award program. Payouts under the 2020 annual incentive award program are reported under column (d) due to the discretionary payout. 7The amount shown in column (i) for Mr. Edwards represents Company contributions under the CSA Savings Plan ($19,950) and nonqualified Supplemental Executive Retirement Plan ($90,453); car allowance ($12,462); and life insurance premiums paid by the Company ($3,285). 8The amount shown in column (i) for Mr. Banas represents Company contributions under the CSA Savings Plan ($17,100) and nonqualified Supplemental Executive Retirement Plan ($30,561); car allowance ($12,462); and life insurance premiums paid by the Company ($942). 9The amount shown in column (i) for Mr. Pumphrey represents Company contributions under the CSA Savings Plan ($19,950) and nonqualified Supplemental Executive Retirement Plan ($47,662); car allowance ($12,462); and life insurance premiums paid by the Company ($4,026). 10The amount shown in column (i) for Mr. DeBest represents Company contributions under the CSA Savings Plan ($19,950) and nonqualified Supplemental Executive Retirement Plan ($37,460); car allowance ($12,462); charitable contribution by the Company’s foundation made at the direction and for the benefit of Mr. DeBest ($25,000); and life insurance premiums paid by the Company ($2,256). 11The amount shown in column (i) for Mr. Ott represents Company contributions under the CSA Savings Plan ($19,950) and nonqualified Supplemental Executive Retirement Plan ($30,176); the cost of a Company-provided vehicle ($2,753); car allowance ($11,538) and life insurance premiums paid by the Company ($2,970). 12The amount shown in column (i) for Mr. de Miguel Posada represents severance pay from July 1, 2020 to December 31, 2021 ($316,094); Company contributions to a defined contribution pension scheme ($94,828); a monthly living allowance ($36,684); housing and relocation expenses associated with Mr. de Miguel living in Germany ($49,010); a tax gross-up associated with housing expenses and other benefits-in-kind ($79,473); the cost of a Company-provided vehicle ($17,318); the cost of Spanish health insurance for Mr. de Miguel Posada and his spouse ($16,907); a health insurance benefit allowance ($8,804); and a bank account maintenance fee ($19). The benefits were valued on the basis of the aggregate incremental cost to the Company and represent the amount paid to the service provider or Mr. de Miguel Posada, as applicable. All remuneration received from July 1, 2020 through December 31, 2020 while on garden leave are pursuant to the terms of Mr. de Miguel Posada’s employment agreement. The garden leave will continue until December 31, 2021. Additional details are listed under “Terms Applicable to Payments upon Termination of Employment”. |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards (#) (1) | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards; Number of Securities Underlying Options | Exercise or Base Price of Option Awards ($/sh) (2) | Grant Date Fair value of Stock and Option Awards ($) (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Award Type | Grant Date | Threshold | Target | Maximum | Threshold | Target | Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (k) | (l) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jeffrey S. Edwards | Annual Bonus (4) | N/A | $300,000 | $1,200,000 | $2,400,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options (5) | 2/13/2020 | — | — | — | — | — | — | — | 101,695 | $25.19 | $900,001 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RSUs (6) | 2/13/2020 | — | — | — | — | — | — | 23,819 | — | — | $600,001 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance RSUs (7) | 2/13/2020 | — | — | — | 28,356 | 56,711 | 113,422 | — | — | — | $1,404,731 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jonathan P. Banas | Annual Bonus (4) | N/A | $93,750 | $375,000 | $750,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options (5) | 2/13/2020 | — | — | — | — | — | — | — | 21,356 | $25.19 | $189,001 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RSUs (6) | 2/13/2020 | — | — | — | — | — | — | 5,002 | — | — | $126,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance RSUs (7) | 2/13/2020 | — | — | — | 5,955 | 11,910 | 23,820 | — | — | — | $295,011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
D. William Pumphrey, Jr. | Annual Bonus (4) | N/A | $114,375 | $457,500 | $915,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options (5) | 2/13/2020 | — | — | — | — | — | — | — | 20,339 | $25.19 | $180,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RSUs (6) | 2/13/2020 | — | — | — | — | — | — | 4,764 | — | — | $120,005 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance RSUs (7) | 2/13/2020 | — | — | — | 5,672 | 11,343 | 22,686 | — | — | — | $280,966 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jeffrey A. DeBest | Annual Bonus (4) | N/A | $83,688 | $334,750 | $669,500 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options (5) | 2/13/2020 | — | — | — | — | — | — | — | 21,356 | $25.19 | $189,001 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RSUs (6) | 2/13/2020 | — | — | — | — | — | — | 5,002 | — | — | $126,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance RSUs (7) | 2/13/2020 | — | — | — | 5,955 | 11,910 | 23,820 | — | — | — | $295,011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Larry E. Ott | Annual Bonus (4) | N/A | $73,125 | $292,500 | $585,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options (5) | 2/13/2020 | — | — | — | — | — | — | — | 12,882 | $25.19 | $114,006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RSUs (6) | 2/13/2020 | — | — | — | — | — | — | 3,018 | — | — | $76,023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance RSUs (7) | 2/13/2020 | — | — | — | 3,592 | 7,184 | 14,368 | — | — | — | $177,948 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Juan Fernando de Miguel Posada | Annual Bonus (4) | N/A | $102,730 | $410,922 | $821,844 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options (8) | N/A | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RSUs (8) | N/A | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance RSUs (8) | N/A | — | — | — | — | — | — | — | — | — | — |
Approval Date of Action Date, if Different | Estimated Future Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards (#/$)1 | All Other Stock Awards: Number of Shares or Units of Stock | All Other Option Awards; Number of Securities Underlying Options | Exercise or Base Price of Option Awards ($/sh)2 | Grant-date fair value of Stock and Option Awards3 | ||||||||||||||||||||
Name | Award Type | Grant Date | Threshold | Target | Maximum | Threshold | Target | Maximum | ||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (k) | (l) | (m) | ||||||||||||||
Jeffrey S. Edwards | Annual Bonus4 | 1/1/2017 | $220,000 | $1,100,000 | $2,200,000 | — | — | — | — | — | — | — | ||||||||||||||
Options5 | 2/13/2017 | — | — | — | — | — | — | — | 26,573 | $107.48 | $885,944 | |||||||||||||||
RSUs6 | 2/13/2017 | — | — | — | — | — | — | 5,511 | — | — | $592,322 | |||||||||||||||
Performance RSUs7 | 2/13/2017 | — | — | — | 6,889 | 13,777 | 27,554 | — | — | — | $1,480,752 | |||||||||||||||
Jonathan P. Banas | Annual Bonus4 | 1/1/2017 | $23,200 | $116,000 | $232,000 | — | — | — | — | — | — | — | ||||||||||||||
Options5 | 2/13/2017 | — | — | — | — | — | — | — | 1,384 | $107.48 | $46,143 | |||||||||||||||
RSUs6 | 2/13/2017 | — | — | — | — | — | — | 287 | — | — | $30,847 | |||||||||||||||
Performance RSUs7 | 2/13/2017 | — | — | — | 359 | 718 | 1,436 | — | — | — | $77,171 | |||||||||||||||
Annual Bonus4, 8 | 6/7/2017 | 6/3/2017 | $28,800 | $144,000 | $288,000 | — | — | — | — | — | — | — | ||||||||||||||
Options9 | 6/7/2017 | 6/3/2017 | — | — | — | — | — | — | — | 3,152 | $108 | $103,669 | ||||||||||||||
RSUs10 | 6/7/2017 | 6/3/2017 | — | — | — | — | — | — | 639 | — | — | $69,012 | ||||||||||||||
Performance RSUs11 | 6/7/2017 | 6/3/2017 | — | — | — | 798 | 1,596 | 3,192 | — | — | — | $172,368 | ||||||||||||||
Keith D. Stephenson | Annual Bonus4 | 1/1/2017 | $101,850 | $509,250 | $1,018,500 | — | — | — | — | — | — | — | ||||||||||||||
Options5 | 2/13/2017 | — | — | — | — | — | — | — | 10,272 | $107.48 | $342,468 | |||||||||||||||
RSUs6 | 2/13/2017 | — | — | — | — | — | — | 2,131 | — | — | $229,040 | |||||||||||||||
Performance RSUs7 | 2/13/2017 | — | — | — | 2,663 | 5,326 | 10,652 | — | — | — | $572,438 | |||||||||||||||
Song Min Lee | Annual Bonus4 | 1/1/2017 | $73,060 | $365,300 | $730,600 | — | — | — | — | — | — | — | ||||||||||||||
Options5 | 2/13/2017 | — | — | — | — | — | — | — | 6,186 | $107.48 | $206,241 | |||||||||||||||
RSUs6 | 2/13/2017 | — | — | — | — | — | — | 1,283 | — | — | $137,897 | |||||||||||||||
Performance RSUs7 | 2/13/2017 | — | — | — | 1,604 | 3,207 | 6,414 | — | — | — | $344,688 | |||||||||||||||
Fernando de Miguel | Annual Bonus4 | 1/1/2017 | $78,303 | $391,515 | $783,030 | — | — | — | — | — | — | — | ||||||||||||||
Options5 | 2/13/2017 | — | — | — | — | — | — | — | 6,717 | $107.48 | $223,945 | |||||||||||||||
RSUs6 | 2/13/2017 | — | — | — | — | — | — | 1,393 | — | — | $149,720 | |||||||||||||||
Performance RSUs7 | 2/13/2017 | — | — | — | 1,742 | 3,483 | 6,966 | — | — | — | $374,353 | |||||||||||||||
Matthew W. Hardt | Annual Bonus4 | 1/1/2017 | $71,250 | $356,250 | $712,500 | — | — | — | — | — | — | — | ||||||||||||||
Options5 | 2/13/2017 | — | — | — | — | — | — | — | 5,269 | $107.48 | $175,668 | |||||||||||||||
RSUs6 | 2/13/2017 | — | — | — | — | — | — | 1,093 | — | — | $117,476 | |||||||||||||||
Performance RSUs7 | 2/13/2017 | — | — | — | 1,366 | 2,732 | 5,464 | — | — | — | $293,635 | |||||||||||||||
2Represents the exercise price of options granted under the 2017 Plan on February 13, 2020. 3Represents the grant-date fair value of RSUs, Performance RSUs, and stock option awards granted under the 2017 Plan on February 13, 2020, computed in accordance with ASC Topic 718. Assumptions used in the calculation of these amounts are included in Note 21 to the Company’s audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. 4For 2020, the Compensation Committee approved target annual incentive awards under the AIP for executive officers and, as the basis for determining the entitlement of executives to actual payment of annual incentive awards, set an Adjusted EBITDA performance target for the year in accordance with the Company’s 2020 business plan approved by the Company’s Board in December 2019. Funding of the bonus pool was determined based on Adjusted EBITDA performance only, and the CEO could recommend a discretionary adjustment of +/- 30% to the funded amount for performance against pre-established individual objectives for the NEOs other than himself, subject to Compensation Committee approval. The CEO’s bonus was based on the Adjusted EBITDA funded amount, with no +/- 30% discretionary adjustment. The determination of annual incentive award payments is described under “Annual Incentive Award” under the Executive Compensation Components 38 |
5Represents options to purchase shares of the Company’s common stock granted under 2017 Plan. The options granted under the 2017 Plan vest ratably such that one-third of the shares covered by the options vest on each of the first three anniversaries of the date of grant and expire on the earliest to occur of: (i) the tenth anniversary of the date of grant; provided, however, that (other than as would otherwise result in the violation of Section 409A of the Code), to the extent an option would expire at a time when the holder of such option is prohibited by applicable law or by the Company’s insider trading policy from exercising the option (the closed window period), then such option shall remain exercisable until the thirtieth (30th) day following the end of the closed window period; (ii) the first anniversary (as defined in the 2017 Plan) of the date of the optionee’s termination of employment due to death or disability, or in connection with a change of control; (iii) the third anniversary of the date of the optionee’s termination of employment due to retirement after attaining age 65 or attaining age 60 with at least 5 years of service; or (iv) 90 days following the date of the optionee’s termination of employment by the Company or its affiliates for any reason not described in clauses (ii) or (iii) above. 6Represents time-vested RSUs granted under the 2017 Plan. These RSUs cliff vest on the third anniversary of the date of grant and will be settled by issuing cash equal to the number of RSUs vesting multiplied by the closing stock price on the vesting date. 7Represents cash-settled Performance RSUs granted under the 2017 Plan. The Performance RSUs are subject to the achievement of a ROIC performance goal during the performance period commencing on January 1, 2020 and ending on December 31, 2021. Additionally, the potential amount of Performance RSUs achieved will be modified based on the Company’s TSR relative to a comparator group. The relative TSR modifier applied will be 75%, 100%, or 125% of the achieved Performance RSUs, but the modifier will not increase the potential number of Performance RSUs received over 200% of the target award granted. The number of achieved performance RSUs will be determined as soon as practicable after the end of the performance period, December 31, 2021. One-half of the total achieved Performance RSUs will vest on December 31, 2021, subject to the NEO’s continued employment on the vesting date and the Company will settle such total achieved Performance RSUs by issuing cash equal to one-half of the total achieved Performance RSUs multiplied by the closing stock price on the performance achievement determination date. The other half of the total achieved Performance RSUs will vest on December 31, 2022, subject to the NEO’s continued employment on the vesting date, and the Company will settle the remaining one-half of the total achieved Performance RSUs by issuing cash equal to one-half of the total achieved Performance RSUs multiplied by the closing stock price one year from the performance achievement determination date. The determination of the amounts achieved is described under “Long-Term Incentive Compensation” under the Executive Compensation Components section of the Compensation Discussion and Analysis. 8Mr. de Miguel Posada did not receive stock or option awards in 2020. 39 |
Option Awards1 | Stock Awards | ||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options (#) Exercisable2 | Number of Securities Underlying Unexercised Unearned Options | Number of Securities Underlying Unexercised Unexercisable Options | 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 3 | Equity Incentive Plan Awards; Number of Unearned Shares, Units or Other Rights That Have Not Vested | Equity Incentive Plan Awards; Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) 3 | ||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | ||||||||||||
Jeffrey S. Edwards | 25,000 | — | $45.00 | 10/15/2019 | 4 | 7,900 | 5 | $967,750 | 39,400 | 6 | $4,826,500 | ||||||||||
25,000 | — | $52.50 | 10/15/2019 | 4 | 7,200 | 7 | $882,000 | 18,100 | 8 | $2,217,250 | |||||||||||
31,900 | — | $66.23 | 3/20/2024 | 9 | 5,511 | 10 | $675,098 | 13,777 | 11 | $1,687,683 | |||||||||||
25,933 | 12,967 | 12 | $56.27 | 2/19/2025 | 9 | ||||||||||||||||
11,733 | 23,467 | 13 | $68.50 | 2/18/2026 | 9 | ||||||||||||||||
— | 26,573 | 14 | $107.48 | 2/13/2027 | 9 | ||||||||||||||||
Jonathan P. Banas | 667 | 1,333 | 13 | $68.50 | 2/18/2026 | 9 | 400 | 7 | $49,000 | 1,000 | 8 | $122,500 | |||||||||
— | 1,384 | 14 | $107.48 | 2/13/2027 | 9 | 750 | 15 | $91,875 | 718 | 11 | $87,955 | ||||||||||
— | 3,152 | 16 | $108.00 | 6/7/2027 | 17 | 287 | 10 | $35,158 | 1,596 | 18 | $195,510 | ||||||||||
639 | 19 | $78,278 | |||||||||||||||||||
Keith D. Stephenson | 2,756 | — | $25.52 | 5/27/2020 | 20 | 4,200 | 5 | $514,500 | 21,000 | 6 | $2,572,500 | ||||||||||
17,900 | — | $66.23 | 3/20/2024 | 9 | 3,300 | 7 | $404,250 | 8,300 | 8 | $1,016,750 | |||||||||||
13,867 | 6,933 | 12 | $56.27 | 2/19/2025 | 9 | 2,131 | 10 | $261,048 | 5,326 | 11 | $652,435 | ||||||||||
5,367 | 10,733 | 13 | $68.50 | 2/18/2026 | 9 | ||||||||||||||||
— | 10,272 | 14 | $107.48 | 2/13/2027 | 9 | ||||||||||||||||
Song Min Lee | — | 4,167 | 12 | $56.27 | 2/19/2025 | 9 | 2,500 | 5 | $306,250 | 12,600 | 6 | $1,543,500 | |||||||||
— | 6,467 | 13 | $68.50 | 2/18/2026 | 9 | 2,000 | 7 | $245,000 | 5,000 | 8 | $612,500 | ||||||||||
— | 6,186 | 14 | $107.48 | 2/13/2027 | 9 | 1,283 | 10 | $157,168 | 12,245 | 21 | $1,500,000 | ||||||||||
3,207 | 11 | $392,858 | |||||||||||||||||||
Fernando de Miguel | — | 4,533 | 12 | $56.27 | 2/19/2025 | 9 | 2,700 | 5 | $330,750 | 13,800 | 6 | $1,690,500 | |||||||||
— | 7,000 | 13 | $68.50 | 2/18/2026 | 9 | 2,200 | 7 | $269,500 | 5,400 | 8 | $661,500 | ||||||||||
— | 6,717 | 14 | $107.48 | 2/13/2027 | 9 | 1,393 | 10 | $170,643 | 12,245 | 21 | $1,500,000 | ||||||||||
3,483 | 11 | $426,668 | |||||||||||||||||||
Matthew W. Hardt | — | — | — | — | — | — | — | — |
Option Awards(1) | Stock Awards | |||||||||||||||||||||||||||||||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options (#) Exercisable (2) | Number of Securities Underlying Unexercised Options (#) Unexercisable | Number of Securities Underlying Unearned Options (#) Unexercisable | Option Exercise Price ($) | 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 ($) (3) | Equity Incentive Plan Awards; Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards; Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (3) | |||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||||||||||||||||
Jeffrey S. Edwards | 31,900 | — | $66.23 | 3/20/2024 | (4) | 5,312 | (5) | $184,167 | — | (6) | — | |||||||||||||||||||||||||||||||||||||||
38,900 | — | $56.27 | 2/19/2025 | (4) | 10,250 | (7) | $355,368 | 12,812 | (8) | $444,192 | ||||||||||||||||||||||||||||||||||||||||
35,200 | — | $68.50 | 2/18/2026 | (4) | 23,819 | (9) | 28,356 | (10) | $983,103 | |||||||||||||||||||||||||||||||||||||||||
26,573 | — | $107.48 | 2/13/2027 | (4) | ||||||||||||||||||||||||||||||||||||||||||||||
16,744 | 8,373 | (11) | $112.71 | 2/13/2028 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
15,097 | 30,196 | (13) | $74.15 | 2/14/2029 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
— | 101,695 | (14) | $25.19 | 2/13/2030 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
Jonathan P. Banas | 2,000 | — | $68.50 | 2/18/2026 | (4) | 899 | (5) | $31,168 | — | (6) | — | |||||||||||||||||||||||||||||||||||||||
1,384 | — | $107.48 | 2/13/2027 | (4) | 1,754 | (7) | $60,811 | 2,192 | (8) | $75,997 | ||||||||||||||||||||||||||||||||||||||||
3,152 | — | $108.00 | 6/7/2027 | (12) | 5,002 | (9) | $173,419 | 5,955 | (10) | $206,460 | ||||||||||||||||||||||||||||||||||||||||
2,832 | 1,416 | (11) | $112.71 | 2/13/2028 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
2,582 | 5,166 | (13) | $74.15 | 2/14/2029 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
— | 21,356 | (14) | $25.19 | 2/13/2030 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
D. William Pumphrey, Jr. | 12,800 | — | $38.74 | 2/15/2013 | (4) | 1,149 | (5) | $39,836 | — | (6) | — | |||||||||||||||||||||||||||||||||||||||
10,400 | — | $66.23 | 3/20/2024 | (4) | 2,118 | (7) | $73,431 | 2,647 | (8) | $91,771 | ||||||||||||||||||||||||||||||||||||||||
12,100 | — | $56.27 | 2/19/2025 | (4) | 4,764 | (9) | $165,168 | 5,672 | (10) | $196,648 | ||||||||||||||||||||||||||||||||||||||||
9,400 | — | $68.50 | 2/18/2026 | (4) | ||||||||||||||||||||||||||||||||||||||||||||||
6,735 | — | $107.48 | 2/13/2027 | (4) | ||||||||||||||||||||||||||||||||||||||||||||||
3,620 | 1,810 | (11) | $112.71 | 2/13/2028 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
3,119 | 6,238 | (13) | $74.15 | 2/14/2029 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
— | 20,339 | (14) | $25.19 | 2/13/2030 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
Jeffrey DeBest | 3,324 | 1,663 | (15) | $117.55 | 3/1/2028 | (12) | 6,055 | (15) | $209,927 | — | (6) | — | ||||||||||||||||||||||||||||||||||||||
2,682 | 5,364 | (13) | $74.15 | 2/14/2029 | (12) | 3,821 | (7) | $132,474 | 2,276 | (8) | $78,909 | |||||||||||||||||||||||||||||||||||||||
— | 21,356 | (14) | $25.19 | 2/13/2030 | (12) | 5,002 | (9) | $173,419 | 5,955 | (10) | $206,460 | |||||||||||||||||||||||||||||||||||||||
Larry Ott | 1,833 | — | $68.50 | 2/18/2026 | (4) | 625 | (5) | $21,669 | — | (6) | — | |||||||||||||||||||||||||||||||||||||||
2,444 | — | $107.48 | 2/13/2027 | (4) | 1,214 | (7) | $42,089 | 1,518 | (8) | $52,629 | ||||||||||||||||||||||||||||||||||||||||
1,970 | 985 | (11) | $112.71 | 2/13/2028 | (12) | 3,018 | (9) | $104,634 | 3,592 | (10) | $124,535 | |||||||||||||||||||||||||||||||||||||||
1,788 | 3,576 | (13) | $74.15 | 2/14/2029 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
— | 12,882 | (14) | $25.19 | 2/13/2030 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
Juan Fernando de Miguel Posada | 3,500 | — | $68.50 | 2/18/2026 | (4) | 1,146 | (5) | $39,732 | — | (6) | — | |||||||||||||||||||||||||||||||||||||||
6,717 | — | $107.48 | 2/13/2027 | (4) | 1,978 | (7) | $68,577 | 2,472 | (8) | $85,704 | ||||||||||||||||||||||||||||||||||||||||
3,610 | 1,805 | (11) | $112.71 | 2/13/2028 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
2,912 | 5,825 | (13) | $74.15 | 2/14/2029 | (12) |
1 | All of the amounts presented in this portion of the table relate to options to purchase shares of the Company’s common stock |
2 | Represents options which have vested and were exercisable |
5 |
Represents time-vested |
7Represents time-vested RSUs granted on February 14, 2019 under the 2017 Plan that had not yet vested as of December 31, 2020. These RSUs cliff vest on the third anniversary of the date of grant. 8Target awards of Performance RSUs were granted under the 2017 Plan in February 2019 to be earned in a multiple ranging from zero to two times the target awards based on our performance during the performance period commencing on January 1, 2019 and ending on December 31, 2021, subject to continued employment during the performance period. The Performance RSUs earned will be settled in 2022. Performance for 2020 was below the threshold level; therefore, the threshold amounts are shown in accordance with SEC rules. The actual number of shares that will be issued is not yet determinable. 9Represents time-vested, cash settled RSUs granted on February 13, 2020 under the 2017 Plan that had not yet vested as of December 31, 2020. These RSUs cliff vest on the third anniversary of the date of grant. 10Target awards of cash-settled Performance RSUs were granted in February 2020 under the 2017 Plan to be earned in a multiple ranging from zero to two times the target awards based on our performance during the performance period commencing on January 1, 2020 and ending on December 31, 2021, subject to continued employment during the performance period. The Performance RSUs earned will be settled 50% in 2022. The remaining 50% earned will be settled in 2023 subject to continued employment. Performance for 2020 was below the threshold level; therefore, the threshold amounts are shown in accordance with SEC rules. The actual number of shares that will be issued is not yet determinable. 11Represents outstanding options granted on February 13, 2018, which have not vested and were unexercisable as of December 31, 2020. These options vest ratably over three years. 12Options listed expire on the earliest to occur of: (i) the tenth anniversary of the date of grant; provided, however, that (other than as would otherwise result in the violation of Section 409A of the Code), to the extent an option would expire at a time when the holder of such option is prohibited by applicable law or by the Company’s insider trading policy from exercising the option (the closed window period), then such option shall remain exercisable until the thirtieth (30th) day following the end of the closed window period; (ii) the first anniversary (as defined in the 2017 Plan) of the date of the optionee’s termination of employment due to death or disability, or in connection with a change of control; (iii) the third anniversary of the date of the optionee’s termination of employment due to retirement after attaining age 65 or attaining age 60 with at least 5 years of service; or (iv) 90 days following the date of the optionee’s termination of employment by the Company or its affiliates for any reason not described in clauses (ii) or (iii) above. 13Represents outstanding options granted February 14, 2019, which have not vested and were unexercisable as of December 31, 2020. These options vest ratably over three years. 14Represents outstanding options granted February 13, 2020, which have not vested and were unexercisable as of December 31, 2020. These options vest ratably over three years. 15Represents outstanding options granted March 1, 2018, which have not vested and were unexercisable as of December 31, 2020. These options vest ratably over three years. 41 |
Option Awards | Stock Awards | |||||||||||||||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) (1) | Value Realized on Vesting ($) (2) | ||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | ||||||||||||||||||||||
Jeffrey S. Edwards | — | — | 5,511 | $138,822 | ||||||||||||||||||||||
Jonathan P. Banas | — | — | 926 | $18,565 | ||||||||||||||||||||||
D. William Pumphrey, Jr. | — | — | 1,397 | $35,190 | ||||||||||||||||||||||
Jeffrey A. DeBest | — | — | — | — | ||||||||||||||||||||||
Larry E. Ott | — | — | 761 | $19,170 | ||||||||||||||||||||||
Juan Fernando de Miguel Posada | — | — | 1,393 | $35,090 |
Option Awards | Stock Awards | |||||||
Name | Number of Shares Acquired on Exercise (#)1 | Value Realized on Exercise ($)2 | Number of Shares Acquired on Vesting (#)3 | Value Realized on Vesting ($)4 | ||||
(a) | (b) | (c) | (d) | (e) | ||||
Jeffrey S. Edwards | 90,290 | 5,915,507 | 20,296 | 2,237,118 | ||||
Jonathan P. Banas | – | – | – | – | ||||
Keith D. Stephenson | 100,600 | 8,403,244 | 11,374 | 1,253,706 | ||||
7,5695 | 700,738 | 1,8176 | 212,782 | |||||
Song Min Lee | 10,999 | 537,971 | 6,820 | 751,582 | ||||
Fernando de Miguel | 24,267 | 1,381,618 | 7,434 | 819,262 | ||||
Matthew W. Hardt | 8,833 | 399,644 | – | – |
2 |
42 |
Name | Plan Name (1) | Number of Years Credited Service (#) | Present Value of Accumulated Benefit1 ($) | Payments During Last Fiscal Year ($) | ||||
(a) | (b) | (c) | (d) | (e) | ||||
Jeffrey S. Edwards | CSA Retirement Plan2 | N/A | N/A | $0 | ||||
Jonathan P. Banas | CSA Retirement Plan2 | N/A | N/A | $0 | ||||
Keith D. Stephenson | CSA Retirement Plan3 | 1.58 | $26,425 | $0 | ||||
Song Min Lee | CSA Retirement Plan2 | N/A | N/A | $0 | ||||
Fernando de Miguel | CSA Retirement Plan2 | N/A | N/A | $0 | ||||
Matthew W. Hardt | CSA Retirement Plan2 | N/A | N/A | $0 |
Name (a) | Executive Contributions in Last FY ($) (b) | Registrant Contributions in Last FY ($)1 (c) | Aggregate Earnings in Last FY ($) (d) | Aggregate Withdrawals/ Distributions ($) (e) | Aggregate Balance at Last FYE ($)2 (f) | |||||
Jeffrey S. Edwards | — | 245,773 | 146,542 | — | 1,216,450 | |||||
Jonathan P. Banas | 27,969 | 4,696 | 55,025 | |||||||
Keith D. Stephenson | — | 232,885 | 345,649 | — | 2,539,045 | |||||
Song Min Lee | — | 97,358 | 77,503 | — | 530,273 | |||||
Fernando de Miguel3 | — | — | — | — | — | |||||
Matthew W. Hardt | — | 55,312 | 16,654 | — | 157,183 |
Name (a) | Executive Contributions in Last FY ($) (b) | Registrant Contributions in Last FY ($) (1) (c) | Aggregate Earnings in Last FY ($)(2) (d) | Aggregate Withdrawals/ Distributions ($)(3) (e) | Aggregate Balance at Last FYE ($) (4) (f) | |||||||||||||||||||||||||||
Jeffrey S. Edwards | — | $90,453 | $247,060 | $535 | $1,997,697 | |||||||||||||||||||||||||||
Jonathan P. Banas | — | $30,561 | $23,251 | $178 | $187,394 | |||||||||||||||||||||||||||
D. William Pumphrey, Jr. | — | $47,662 | $83,415 | $218 | $916,235 | |||||||||||||||||||||||||||
Jeffrey A. DeBest | — | $37,460 | $10,382 | $184 | $111,407 | |||||||||||||||||||||||||||
Larry E. Ott | — | $30,176 | $60,197 | $161 | $533,880 | |||||||||||||||||||||||||||
Juan Fernando de Miguel Posada5 | $0 | $256 | $256 | $0 |
1 | Amounts are included in column (i) of the Summary Compensation Table and represent nonqualified Company contributions |
Name | 2017 ($) | Previous Years ($) | Total ($) | |||
Jeffrey S. Edwards | 245,773 | 795,786 | 1,041,559 | |||
Jonathan P. Banas | 27,969 | 22,360 | 50,329 | |||
Keith D. Stephenson | 232,885 | 1,400,919 | 1,633,804 | |||
Song Min Lee | 97,358 | 347,024 | 444,382 | |||
Matthew W. Hardt | 55,312 | 83,726 | 139,038 |
Name | 2020 SERP Earnings ($) | 2020 Salary Deferral Earnings ($) | ||||||||||||
Jeffrey S. Edwards | $246,525 | $535 | ||||||||||||
Jonathan P. Banas | $23,073 | $178 | ||||||||||||
D. William Pumphrey, Jr. | $83,197 | $218 | ||||||||||||
Jeffrey A. DeBest | $10,198 | $184 | ||||||||||||
Larry E. Ott | $60,036 | $161 | ||||||||||||
Juan Fernando de Miguel Posada | $0 | $256 |
Name | 2020 ($) | Previous Years ($) | Total ($) | |||||||||||||||||
Jeffrey S. Edwards | $90,453 | $1,277,502 | $1,367,955 | |||||||||||||||||
Jonathan P. Banas | $30,561 | $111,618 | $142,178 | |||||||||||||||||
D. William Pumphrey, Jr. | $47,662 | $40,670 | $88,332 | |||||||||||||||||
Jeffrey A. DeBest | $37,460 | $23,566 | $61,026 | |||||||||||||||||
Larry E. Ott | $30,176 | — | $30,176 | |||||||||||||||||
Juan Fernando de Miguel Posada | $0 | — | $0 |
Name of Fund | Rate of Return | Name of Fund | Rate of Return | |||
Vanguard High Dividend Yield Index Fund Investor Shares | 16.37% | T. Rowe Price Stable Value Common Fund A | 1.53% | |||
Fidelity® 500 Index Fund - Institutional Class | 21.79% | JPMorgan Core Bond Fund Class R6 | 3.87% | |||
American Funds EuroPacific Growth Fund® Class R-5 | 31.09% | Loomis Sayles Bond Fund Institutional Class | 7.48% | |||
T. Rowe Price Growth Stock Fund | 33.63% | DFA U.S. Targeted Value Portfolio Institutional Class | 9.59% | |||
Prudential Jennison Small Company Fund Class Z | 19.68% | Fidelity® Inflation-Protected Bond Index Fund - Institutional Class | 3.08% |
Name of Fund | January - September Rate of Return (Prior Fund) | October - December Rate of Return (Current Fund) | ||
T. Rowe Price Retirement 2005 Fund (Class F) | 8.32% | 2.13% | ||
T. Rowe Price Retirement 2010 Fund (Class F) | 9.11% | 2.38% | ||
T. Rowe Price Retirement 2015 Fund (Class F) | 10.37% | 2.73% | ||
T. Rowe Price Retirement 2020 Fund (Class F) | 12.25% | 3.17% | ||
T. Rowe Price Retirement 2025 Fund (Class F) | 13.74% | 3.58% | ||
T. Rowe Price Retirement 2030 Fund (Class F) | 15.05% | 3.86% | ||
T. Rowe Price Retirement 2035 Fund (Class F) | 16.14% | 4.16% | ||
T. Rowe Price Retirement 2040 Fund (Class F) | 16.98% | 4.39% | ||
T. Rowe Price Retirement 2045 Fund (Class F) | 17.29% | 4.48% | ||
T. Rowe Price Retirement 2050 Fund (Class F) | 17.20% | 4.47% | ||
T. Rowe Price Retirement 2055 Fund (Class F) | 17.16% | 4.48% | ||
T. Rowe Price Retirement 2060 Fund (Class F) | * | 4.45% | ||
T. Rowe Price Retirement Balanced Fund (Class F) | 8.02% | 2.19% |
Name of Fund | Rate of Return | Name of Fund | Rate of Return | |||||||||||||||||
Vanguard High Dividend Yield Index Fund Investor Shares | 1.14 | % | Fidelity® US Bond Index | 7.80 | % | |||||||||||||||
Fidelity® 500 Index Fund - Institutional Class | 18.40 | % | T. Rowe Price Retirement 2005 Fund (Class F) | 11.45 | % | |||||||||||||||
American Funds EuroPacific Growth Fund® Class R-5 | 25.19 | % | T. Rowe Price Retirement 2010 Fund (Class F) | 12.13 | % | |||||||||||||||
T. Rowe Price Growth Stock Fund | 36.93 | % | T. Rowe Price Retirement 2015 Fund (Class F) | 12.85 | % | |||||||||||||||
T. Rowe Price Retirement Balanced Fund (Class F) | 11.54 | % | T. Rowe Price Retirement 2020 Fund (Class F) | 13.46 | % | |||||||||||||||
T. Rowe Price Stable Value Common Fund A | 2.06 | % | T. Rowe Price Retirement 2025 Fund (Class F) | 14.84 | % | |||||||||||||||
Loomis Sayles Bond Fund Institutional Class | 2.14 | % | T. Rowe Price Retirement 2030 Fund (Class F) | 16.07 | % | |||||||||||||||
DFA U.S. Targeted Value Portfolio Institutional Class | 3.77 | % | T. Rowe Price Retirement 2035 Fund (Class F) | 17.25 | % | |||||||||||||||
Fidelity® Inflation-Protected Bond Index Fund - Institutional Class | 10.90 | % | T. Rowe Price Retirement 2040 Fund (Class F) | 18.33 | % | |||||||||||||||
Hartford MidCap R6 | 25.06 | % | T. Rowe Price Retirement 2045 Fund (Class F) | 18.80 | % | |||||||||||||||
Fidelity® Mid Cap Index | 17.11 | % | T. Rowe Price Retirement 2050 Fund (Class F) | 18.80 | % | |||||||||||||||
Fidelity® Small Cap Index | 19.99 | % | T. Rowe Price Retirement 2055 Fund (Class F) | 18.77 | % | |||||||||||||||
Fidelity® International Index | 8.17 | % | T. Rowe Price Retirement 2060 Fund (Class F) | 18.75 | % | |||||||||||||||
Fidelity® Government Money Market K6 | 0.32 | % |
Name | Severance Payment(1) | Pension Enhancement (2) | Health/Life(3) | Outplacement Services(4) | Accelerated Vesting of Equity Awards(5) | 280G Treatment/Gross Up(6) | Totals | ||||||||||||||||||||||||||||||||||||||||
Jeffrey S. Edwards | |||||||||||||||||||||||||||||||||||||||||||||||
• | Change of Control Without Termination | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause or Resignation for Good Reason, After Change of Control | $4,760,000 | — | $15,776 | $50,000 | $5,644,345 | — | $10,470,121 | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause with no Change of Control | $4,400,000 | — | $15,776 | $50,000 | — | N/A | $4,465,776 | |||||||||||||||||||||||||||||||||||||||
• | Termination for Cause or Resignation Without Good Reason | — | — | — | — | — | N/A | — | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Death | — | — | — | — | $5,644,345 | N/A | $5,644,345 | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Disability | — | — | — | — | $5,644,345 | N/A | $5,644,345 | |||||||||||||||||||||||||||||||||||||||
Jonathan P. Banas | |||||||||||||||||||||||||||||||||||||||||||||||
• | Change of Control Without Termination | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause or Resignation for Good Reason, After Change of Control | $1,862,500 | — | $23,021 | $50,000 | $1,110,636 | — | $3,046,157 | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause with no Change of Control | $1,312,500 | — | $23,021 | $50,000 | — | N/A | $1,385,521 | |||||||||||||||||||||||||||||||||||||||
• | Termination For Cause or Resignation Without Good Reason | — | — | — | — | — | N/A | — | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Death | — | — | — | — | $1,110,636 | N/A | $1,110,636 | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Disability | — | — | — | — | $1,110,636 | N/A | $1,110,636 | |||||||||||||||||||||||||||||||||||||||
D. William Pumphrey, Jr. | |||||||||||||||||||||||||||||||||||||||||||||||
• | Change of Control Without Termination | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause or Resignation for Good Reason, After Change of Control | $2,272,250 | — | $23,005 | $50,000 | $1,147,591 | — | $3,492,846 | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause or Resignation for Good Reason, with no Change of Control | $1,601,250 | — | $23,005 | $50,000 | $189,555 | N/A | $1,863,810 | |||||||||||||||||||||||||||||||||||||||
• | Termination For Cause or Resignation Without Good Reason | — | — | — | — | — | N/A | — | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Death | — | — | — | — | $1,147,591 | N/A | $1,147,591 | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Disability | — | — | — | — | $1,147,591 | N/A | $1,147,591 | |||||||||||||||||||||||||||||||||||||||
Name | Severance Payment1 | Pension Enhancement2 | Health/Life3 | Outplacement Services4 | Accelerated Vesting of Equity Awards5 | 280G Treatment/Gross Up6 | Totals | |||||||
Jeffrey S. Edwards | ||||||||||||||
• Change of Control Without Termination | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||||||
• Termination Without Cause or Resignation for Good Reason, After Change of Control | $4,464,000 | $0 | $21,302 | $50,000 | $11,368,139 | ($1,466,430) | $14,437,010 | |||||||
• Termination Without Cause with no Change of Control | $3,980,000 | $0 | $21,302 | $50,000 | $0 | N/A | $4,051,302 | |||||||
• Termination for Cause or Resignation Without Good Reason | $0 | $0 | $0 | $0 | $0 | N/A | $0 | |||||||
• Termination due to Death | $0 | $0 | $0 | $0 | $11,368,139 | N/A | $11,368,139 | |||||||
• Termination due to Disability | $0 | $0 | $0 | $0 | $11,368,139 | N/A | $11,368,139 | |||||||
Jonathan P. Banas | ||||||||||||||
• Change of Control Without Termination | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||||||
• Termination Without Cause or Resignation for Good Reason, After Change of Control | $1,095,000 | $0 | $20,359 | $50,000 | $798,767 | $0 | $1,964,126 | |||||||
• Termination Without Cause with no Change of Control | $735,450 | $0 | $20,359 | $50,000 | $0 | N/A | $805,809 | |||||||
• Termination For Cause or Resignation Without Good Reason | $0 | $0 | $0 | $0 | $0 | N/A | $0 | |||||||
• Termination due to Death | $0 | $0 | $0 | $0 | $798,767 | N/A | $798,767 | |||||||
• Termination due to Disability | $0 | $0 | $0 | $0 | $798,767 | N/A | $798,767 | |||||||
Keith D. Stephenson | ||||||||||||||
• Change of Control Without Termination | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||||||
• Termination Without Cause or Resignation for Good Reason, After Change of Control | $3,025,500 | $609,966 | $900,408 | $50,000 | $5,328,313 | $0 | $9,914,187 | |||||||
• Termination Without Cause or Resignation for Good Reason, with no Change of Control | $2,346,500 | $609,966 | $34,996 | $0 | $0 | N/A | $2,991,462 | |||||||
• Termination For Cause or Resignation Without Good Reason | $0 | $0 | $0 | $0 | $0 | N/A | $0 | |||||||
• Termination due to Death | $0 | $0 | $0 | $0 | $5,328,313 | N/A | $5,328,313 | |||||||
• Termination due to Disability | $0 | $0 | $0 | $0 | $5,328,313 | N/A | $5,328,313 | |||||||
Name | Severance Payment1 | Pension Enhancement2 | Health/Life3 | Outplacement Services4 | Accelerated Vesting of Equity Awards5 | 280G Treatment/Gross Up6 | Totals | |||||||
Song Min Lee | ||||||||||||||
• Change of Control Without Termination | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||||||
• Termination Without Cause or Resignation for Good Reason, After Change of Control | $1,994,532 | $0 | $44,541 | $50,000 | $4,703,637 | ($1,351,858) | $5,440,852 | |||||||
• Termination Without Cause with no Change of Control | $1,375,350 | $0 | $44,541 | $50,000 | $0 | N/A | $1,469,891 | |||||||
• Termination For Cause or Resignation Without Good Reason | $0 | $0 | $0 | $0 | $0 | N/A | $0 | |||||||
• Termination due to Death | $0 | $0 | $0 | $0 | $3,203,637 | N/A | $3,203,637 | |||||||
• Termination due to Disability | $0 | $0 | $0 | $0 | $3,203,637 | N/A | $3,203,637 | |||||||
Fernando de Miguel | ||||||||||||||
• Change of Control Without Termination | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||||||
• Termination Without Cause or Resignation for Good Reason, After Change of Control | $1,473,220 | $135,524 | $12,644 | $0 | $4,983,420 | $0 | $6,604,808 | |||||||
• Termination Without Cause with no Change of Control | $1,473,220 | $135,524 | $12,644 | $0 | $0 | N/A | $1,621,388 | |||||||
• Termination For Cause or Resignation Without Good Reason | $0 | $0 | $0 | $0 | $0 | N/A | $0 | |||||||
• Termination due to Death | $0 | $0 | $0 | $0 | $3,483,420 | N/A | $3,483,420 | |||||||
• Termination due to Disability | $0 | $0 | $0 | $0 | $3,483,420 | N/A | $3,483,420 |
Name | Severance Payment(1) | Pension Enhancement (2) | Health/Life(3) | Outplacement Services(4) | Accelerated Vesting of Equity Awards(5) | 280G Treatment/Gross Up(6) | Totals | ||||||||||||||||||||||||||||||||||||||||
Jeffrey A. DeBest | |||||||||||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause with no Change of Control | $1,330,417 | — | $14,905 | $50,000 | — | N/A | $1,395,322.00 | |||||||||||||||||||||||||||||||||||||||
Larry E. Ott | |||||||||||||||||||||||||||||||||||||||||||||||
• | Change of Control Without Termination | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause or Resignation for Good Reason, After Change of Control | $1,572,750 | — | $15,473 | $50,000 | $698,995 | — | $2,337,218 | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause with no Change of Control | $1,113,750 | — | $15,473 | $50,000 | $113,848 | N/A | $1,293,071 | |||||||||||||||||||||||||||||||||||||||
• | Termination For Cause or Resignation Without Good Reason | — | — | — | — | — | N/A | — | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Death | — | — | — | — | $698,995 | N/A | $698,995 | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Disability | — | — | — | — | $698,995 | N/A | $698,995 | |||||||||||||||||||||||||||||||||||||||
Juan Fernando de Miguel Posada | |||||||||||||||||||||||||||||||||||||||||||||||
• | Change of Control Without Termination | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause or Resignation for Good Reason, After Change of Control | $1,043,110 | $94,828 | $25,440 | — | $378,943 | — | $1,542,321 | |||||||||||||||||||||||||||||||||||||||
• | Termination Without Cause with no Change of Control | $1,043,110 | $94,828 | $25,440 | — | $81,128 | N/A | $1,244,506 | |||||||||||||||||||||||||||||||||||||||
• | Termination For Cause or Resignation Without Good Reason | — | — | — | — | — | N/A | — | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Death | — | — | — | — | $378,943 | N/A | $378,943 | |||||||||||||||||||||||||||||||||||||||
• | Termination due to Disability | — | — | — | — | $378,943 | N/A | $378,943 |
1 |
2Messrs. Edwards, Banas, Pumphrey, DeBest and Ott are not entitled to any additional benefit from the Enhanced |
4Upon termination without cause (or resignation for good reason) after a change of control, Messrs. Edwards, Banas, Pumphrey, Jr., and Ott are entitled to payment of the cost of outplacement services in an amount equal to the lesser of 15% of annual base salary at the time of termination, or $50,000. Pursuant to the January 1, 2011 Executive Severance Pay Plan, Messrs. Edwards, Banas, Pumphrey, Jr., and Ott are also entitled to payment of the cost of outplacement services in an amount equal to the lesser of 15% of annual base salary at the time of termination, or $50,000 upon termination without cause (or resignation for good reason) prior to a change of control. 5For Messrs. Edwards, Banas, Pumphrey, Jr. Ott and de Miguel Posada, represents the effect of accelerated vesting related to time-based RSUs, stock options, and performance-based RSUs. |
Mr. DeBest forfeited all unvested equity awards as of March 1, 2021. 48 6Upon a change of control of the Company, each executive may be subject to certain excise taxes pursuant to Section 280G of the Internal Revenue Code. Pursuant to the Severance Plan, Messrs. Edwards, Banas, Pumphrey, Jr. and Ott will receive the treatment that provides the best after-tax benefit (taking into account the applicable federal, state, and local income taxes and the excise tax) between (i) total payments being delivered in full, or (ii) total payments cutback to such amount so that no portion of such total payments would be subject to the excise tax. These amounts assume that no amounts will be discounted as attributable to reasonable compensation and no value will be attributed to the non-competition covenants included in the agreement. Amounts will be discounted to the extent the Company can demonstrate by clear and convincing evidence that the non-competition covenants included in the agreement substantially constrains the executive’s ability to perform services and there is a reasonable likelihood that the non-competition covenants will be enforced against the individual. |
Ratio of the Annual Total Compensation of the Median-Paid Employee to the CEO |
2 We calculated the total compensation of Mr. Jeffrey Edwards, our CEO, as detailed in the Summary Compensation Table for 2020, and compared it to the median employee’s total compensation for 2020 to arrive at the Pay Ratio. 3 Utilized the World Bank, Price level ratio of PPP Conversion Factor (GDP) to Market Exchange Rate for 2019. 51 |
þ | The Board of Directors recommends that the stockholders vote FOR Proposal 3. |
Fees and Services of Independent Registered Public Accounting Firm |
2020 | 2019 | |||||||||||||
Audit fees1 | $ | 3,789 | $ | 4,093 | ||||||||||
Audit-related fees2 | $ | 985 | $ | 1,464 | ||||||||||
Tax fees3 | $ | 1,096 | $ | 933 | ||||||||||
All other fees4 | $ | — | $ | 42 | ||||||||||
Total | $ | 5,870 | $ | 6,532 |
2017 | 2016 | |||||||
Audit fees1 | $ | 3,945 | $ | 3,605 | ||||
Audit-related fees2 | $ | 944 | $ | 611 | ||||
Tax fees3 | $ | 859 | $ | 1,044 | ||||
All other fees4 | $ | — | $ | — | ||||
Total | $ | 5,748 | $ | 5,260 |
Report of the Audit Committee |
Introduction: | On March 25, 2021, upon recommendation of the Compensation Committee, the Board approved the Cooper-Standard Holdings Inc. 2021 Omnibus Incentive Plan (the “Plan”), subject to stockholder approval at the 2021 Annual Meeting. The Plan will supersede the Cooper-Standard Holdings Inc. 2017 Omnibus Incentive Plan (the “2017 Plan”), which is the only plan under which equity-based compensation may currently be awarded to our executives, non-employee directors, and other employees. The Cooper-Standard Holdings Inc. 2011 Omnibus Incentive Plan (the “2011 Plan”) and the 2017 Plan (collectively, the “Prior Plans”) are the only plans under which equity-based compensation awards to our executives, non-employee directors, and other employees are currently outstanding. Awards currently outstanding under the Prior Plans will remain outstanding under the applicable Prior Plan in accordance with its terms. We believe that the adoption of the Plan is necessary in order to allow us to continue to use equity awards, including performance awards. We believe that granting equity-based compensation to officers, other key employees and non-employee directors is an effective means to promote the future growth and development of the Company. Equity awards, among other things, further align the interests of award recipients with Company stockholders and enable the Company to attract and retain qualified personnel. If the Plan is approved by our stockholders, the Plan will become effective on May 20, 2021 (the “Effective Date”), no further awards will be made under the 2017 Plan, and all shares available for grants of awards under the 2017 Plan will roll over to the Plan and become available for grants of awards under the Plan. If our stockholders do not approve the Plan, the 2017 Plan will remain in effect in its current form, subject to its expiration date. However, there could be insufficient shares available under the 2017 Plan to make annual awards and to provide grants to new hires in the coming years. In this event, the Compensation Committee would be required to revise its compensation philosophy and devise other programs to attract, retain, and compensate its officers, non-employee directors, and key employees. | ||||
Proposed Share Reserve: | As of the Effective Date, a total of 1,453,092 shares of common stock are reserved for awards granted under the Plan (comprised of solely of the 1,453,092 shares that remained available for grant under the 2017 Plan as of February 28, 2021; no incremental shares are being added). The Plan’s reserve will be reduced by one (1) share for every one (1) share that is subject to an option or stock appreciation right granted under the 2017 Plan after February 28, 2021 and prior to the Effective Date, and one and thirty-two hundredths (1.32) shares for every one (1) share that is subject to an award other than an option or stock appreciation right (such award, a “full-value award”) granted under the 2017 Plan after February 28, 2021 and prior the Effective Date. In addition, to the extent that after February 28, 2021, outstanding awards under the Prior Plans expire or are terminated without the issuance of shares, or if such awards are settled in cash, or if shares are tendered or withheld for payment of taxes on full-value awards, then the shares subject to such awards will be added to the Plan’s reserve. The Plan’s reserve will be reduced by one (1) share for every one (1) share that is subject to an option or stock appreciation right granted under the Plan and one and thirty-two hundredths (1.32) shares for every one (1) share that is subject to a full-value award granted under the Plan. |
Impact on Dilution and Fully-Diluted Overhang: | Our Board recognizes the impact of dilution on our stockholders and has evaluated this share request carefully in the context of the need to motivate, retain and ensure that our leadership team is focused on our strategic and long-term growth priorities. The total fully-diluted overhang as of February 28, 2021, assuming that the entire share reserve is granted in stock options, would be 14.0%, and the total fully-diluted overhang, assuming the share reserve is granted in full-value awards only, would be 12.4%. The Company’s historical practice, which is not currently expected to change, has been to grant a combination of stock options and full-value awards, resulting in overhang between these two levels. In this context, fully-diluted overhang is calculated as the sum of grants outstanding and shares available for future awards (numerator) divided by the sum of the numerator and basic common shares outstanding, with all data effective as of February 28, 2021. Our Board believes that the shares of common stock available for issuance represents a reasonable amount of potential equity dilution given our strategic and long-term growth priorities. | ||||
Expected Duration of the Share Reserve: | We expect that the share reserve under the Plan, if this proposal is approved by our shareholders, will be sufficient for awards for approximately two years assuming all grants are stock-settled. Expectations regarding future share usage could be impacted by a number of factors such as award type mix; hiring and promotion activity at the executive level; the rate at which shares are returned to the Plan's reserve upon the awards' expiration, forfeiture or cash settlement; the future performance of our stock price; the consequences of acquiring other companies; and other factors. While we believe that the assumptions we used are reasonable, future share usage may differ from current expectations. | ||||
Governance Highlights of Plan: | Our Plan incorporates certain governance best practices, including: þ Minimum vesting period of one year from the date of grant for all equity-based awards granted under the Plan, with permitted exceptions up to 5% of the share reserve. þ No “liberal share recycling” of stock options or stock appreciation rights (“SARs”). þ No dividends or dividend equivalents on stock options or SARs. þ Dividends and dividend equivalent rights on all other awards are not paid unless and until the underlying award vests. þ Minimum 100% fair market value exercise price for stock options and SARs. þ No “liberal” change of control definition and no automatic “single-trigger” acceleration on a change of control transaction. þ No repricing of stock options or SARs and no cash buyout of underwater options and SARs without stockholder approval, except for adjustments with respect to a change of control or an equitable adjustment in connection with certain corporate transactions | ||||
Date of Plan Expiration: | The Plan will terminate on May 20, 2031, unless terminated earlier by the Board, but awards granted prior to such date may be extended beyond that date. |
2020 | 2019 | 2018 | |||||||||
Stock Options/SARs Granted | 233,732 | 174,874 | 95,145 | ||||||||
Stock-Settled Time-Vested Restricted Shares/Units Granted* | 114,291 | 189,912 | 110,905 | ||||||||
Stock-Settled Performance-Based Stock Units Earned* | 0 | 0 | 21,984 | ||||||||
Weighted-Average Basic Common Shares Outstanding | 16,913,850 | 17,164,124 | 17,894,718 |
Stock Options Outstanding | 871,535 | ||||
Weighted-Average Exercise Price of Outstanding Stock Options | $58.86 | ||||
Weighted-Average Remaining Term of Outstanding Stock Options | 6.47 years | ||||
Total Stock-Settled Full-Value Awards Outstanding* | 420,991 | ||||
Basic Common Shares Outstanding as of the Record Date (03/26/2021) | 16,942,163 | ||||
Shares Remaining Available for Future Grant** | 1,453,092 |
þ | The Board of Directors recommends that the stockholders vote FOR Proposal 4. |
COOPER-STANDARD HOLDINGS INC. ATTN: | VOTE BY INTERNET Before The Meeting - Go to www.proxyvote.com Use the Internet to transmit your voting instructions, your questions to management and your request for electronic delivery of proxy materials 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 website and follow the instructions to obtain your records and to create an electronic voting instruction form. During The Meeting - Go to www.virtualshareholdermeeting.com/ You will be able to attend and vote at the Annual Meeting via the Internet by visiting the website referenced right above. Have the information that is printed in the box marked by the arrow available and follow the instructions. 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. |
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COOPER-STANDARD HOLDINGS INC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Board of Directors recommends you vote FOR the listed nominees. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. | Election of Directors | For | Against | Abstain | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Board of Directors recommends you vote FOR Proposals 2, 3 and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1a. John G. Boss | ☐ | ☐ | ☐ | For | Against | Abstain | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1b. Jeffrey S. Edwards | ☐ | ☐ | ☐ | 2. | Advisory Vote on Named Executive Officer Compensation. | ☐ | ☐ | ☐ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
1c. Richard J. Freeland | ☐ | ☐ | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. | Ratification of Appointment of Independent Registered Public Accounting Firm. | ☐ | ☐ | ☐ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1d. Adriana E. Macouzet-Flores | ☐ | ☐ | ☐ | 4. | Approval of the Cooper-Standard Holdings Inc. 2021 Omnibus Incentive Plan | ☐ | ☐ | ☐ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
1e. David J. Mastrocola | ☐ | ☐ | ☐ | NOTE: Conduct such other business as may properly come before the meeting or any adjournment thereof. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1f. Justin E. Mirro | ☐ | ☐ | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1g. Robert J. Remenar | ☐ | ☐ | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1h. Sonya F. Sepahban | ☐ | ☐ | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1i. Thomas W. Sidlik | ☐ | ☐ | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1j. Stephen A. Van Oss | ☐ | ☐ | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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COOPER-STANDARD HOLDINGS INC. Annual Meeting of Stockholders May This proxy is solicited by the Board of Directors The stockholder(s) hereby appoint(s) Jeffrey S. Edwards and This proxy, when properly executed and returned, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors’ recommendations. Continued and to be signed on reverse side |