UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE
SECURITIES EXCHANGE ACT OF 1934 (Amendment No.)
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Filed by a party other than the Registrant ☐
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☐ | Preliminary Proxy Statement |
☐ | Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
☒ | Definitive Proxy Statement |
☐ | Definitive Additional Materials |
☐ | Soliciting Material Pursuant to |
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NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To our shareholders:
The 2021 annual meeting of shareholders of Preformed Line Products Company will be held at 660 Beta Drive, Mayfield Village, Ohio, 44143 on Tuesday, May 4, 2021, at 9:30 a.m., local time, for the following purposes:
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Only shareholders of record at the close of business on March 5, 2021 are entitled to notice of and to vote at the meeting or any adjournment thereof. Shareholders are urged to complete, sign and date the enclosed proxy and return it in the enclosed envelope or to vote online or by telephone.
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Dated: March 26, 2021
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON TUESDAY, MAY 4, 2021:
This notice of annual meeting of shareholders, the accompanying proxy statement and the Company’s 2021 Annual Report to Shareholders are also available at: www.proxydocs.com/PLPC.
We intend to hold our annual meeting of shareholders in person. However, we are closely monitoring the coronavirus (COVID-19) situation and are sensitive to public health and travel concerns and the protocols that federal, state, and local governments may impose. There is a possibility that we may need to reconsider the date, time, method and/or location of our annual meeting of the shareholders. If we determine it necessary to make such changes to our annual meetings logistics, we will announce the decision to do so in advance in a press release and by filing additional proxy materials with the Securities Exchange Commission, which will be available on our website at www.preformed.com. As always, we encourage you to vote your shares prior to the annual meeting of the shareholders.
Preformed Line Products Company
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
Payment of Filing fee (Check all boxes that apply):
☒ | No fee required. |
☐ | Fee paid previously with preliminary materials: |
☐ | Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11. |
Preformed Line Products Company |
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To our shareholders: The 2023 annual meeting of shareholders of Preformed Line Products Company will be held at 660 Beta Drive, Mayfield Village, Ohio, 44143 on Tuesday, May 9, 2023, at 9:30 a.m., local time, for the following purposes:
Only shareholders of record at the close of business on March 10, 2023 are entitled to notice of and to vote at the meeting or any adjournment thereof. Shareholders are urged to complete, sign and date the enclosed proxy and return it in the enclosed envelope or to vote online or by telephone.
Dated: March 24, 2023 IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON TUESDAY, MAY 9, 2023: This notice of annual meeting of shareholders, the accompanying proxy statement and the Company’s 2023 Annual Report to Shareholders are also available at: www.proxydocs.com/PLPC. This notice, the accompanying proxy statement and form of proxy card are being distributed or made available on or about March 24, 2023. Preformed Line Products Company
Preformed Line Products Company
Our Board of Directors is sending you this proxy statement to ask for your vote as a Preformed Line Products Company shareholder on the matters to be voted on at the annual meeting of shareholders. We intend to hold the Annual Meeting in person, on Tuesday, May 9, 2023, at our Company’s headquarters, 660 Beta Drive, Mayfield Village, Ohio 44143. The health and well-being of our employees and shareholders are a high priority, and we are sensitive to the public health and travel concerns our shareholders may have related to the ongoing COVID-19 pandemic. Accordingly, if we determine that it is not possible or advisable to hold the Annual Meeting in person, we will announce alternative arrangements for the meeting, which may include a change in venue or holding the meeting solely by means of remote communication. We will announce any such change and the details on how to participate by press release, and in a filing with the Securities and Exchange Commission. In addition, for your safety and ours, we ask that you register your planned in-person attendance with us at least ten business days prior to the meeting, by communicating with Carrie Vaccariello, by email (cvaccariello@preformed.com) or mail (660 Beta Drive, Mayfield Village, OH 44143). In addition, an admission ticket, as well as matching photo identification, are necessary to gain entrance to the secure area of our headquarters building where the meeting will be held. Annual Report. A copy of our Annual Report to Shareholders for the fiscal year ended December 31, 2022 is enclosed with this proxy statement. Solicitation of Proxies. Our Board of Directors is making this solicitation of proxies and the Company will pay the cost of the solicitation. In addition to solicitation of proxies by mail, our employees may solicit proxies by telephone, facsimile or electronic mail. Proxies; Revocation of Proxies; Voting Instructions. If you are a shareholder of record, the shares represented by your signed and returned proxy will be voted in accordance with the instructions as indicated on your proxy. In the absence of any such instructions, they will be voted to (a) elect the director nominees set forth under “Election of Directors”, (b) to hold an advisory vote on the compensation of the Company’s Named Executive Officers, (“NEOs”), (c) to hold an advisory vote on the frequency of an advisory shareholder vote on the compensation of the Company’s Named Executive Officers; and (d) to ratify the appointment of Ernst & Young LLP (“EY”) as our independent registered accounting firm for the fiscal year ending December 31, 2023. Your presence at the annual meeting of shareholders will not revoke your proxy. However, you may revoke your proxy at any time before it has been exercised by signing and delivering a later-dated proxy or by giving notice to us in writing at our address indicated on the attached Notice of Annual Meeting of Shareholders by May 9, 2023, or in the open meeting. If you hold shares through an account with a bank or broker, banks and brokers have the authority to vote shares for which their customers do not provide voting instructions on certain routine matters. The ratification of the appointment of EY as the Company’s independent registered public accounting firm is considered a routine matter for which banks and brokers may vote without specific instructions from their customers, but banks and brokers do not have the authority to vote for the election of directors, the compensation paid to the Named Executive Officers or the frequency of an advisory shareholder vote on the compensation paid to the Named Executive Officers. As such, if you own your shares through a bank or broker and do not provide specific voting instructions to the bank or broker or do not obtain a proxy to vote those shares, then your shares will not be voted on this matter (“broker non-votes”). Voting Eligibility. Only shareholders of record at the close of business on the record date, March 10, 2023, are entitled to receive notice of the annual meeting of shareholders and to vote the common shares that they held on the record date at the meeting. On the record date, our voting securities outstanding consisted of 4,949,274 common shares, $2 par value, each of which is entitled to one vote at the meeting. Quorum. Shareholders, present in person or by proxy and entitled to vote at the meeting, holding shares entitling them to exercise a majority of the voting power of the Company are necessary to constitute a quorum at the meeting. Abstaining votes and broker non-votes will be counted as “present” for purposes of determining whether a quorum has been achieved at the meeting.
| 2023 Proxy Statement 1 |
Voting Required. The vote required to approve each proposal is as follows:
| Director nominees who receive the greatest number of
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R. Steven Kestner Age: Director Since: 2008 | Background / Qualifications Mr. Kestner is a |
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J. Ryan Ruhlman Age: Director Since: 2016 | Background / Qualifications As the great-grandson of the founder and the son of the Chairman of the Board, President and CEO, Robert G. Ruhlman, Mr. J. Ryan Ruhlman has been part of the Company throughout his life. He began working for the Company in January 2002 as a part-time Laboratory Technician while attending college, and continued his career at the Company after graduation, working in various roles in Research and Engineering, Manufacturing, and International Operations. He was |
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David C. Sunkle Age: Director Since: | Background / Qualifications In 1978, Mr. Sunkle began his career at the Company as a Lab Technician. Over the next 42 years, he held various positions including Project Engineer, Lab Supervisor, Director of International Operations, and Director of Research and |
Barbara P. Ruhlman
Director Emeritus since 2016
Director Since: 1988
Background / Qualifications
Mrs. Ruhlman became a member of the Board in 1988 and in 2016, elected to resign and was appointed as Director Emeritus. As the daughter of the founder and the mother of Robert G. Ruhlman and grandmother of J. Ryan Ruhlman and Maegan A. R. Cross, she has seen the Company grow from its founding as a local manufacturing firm to the multi-national company it is today. She has served as President of the Thomas F. Peterson Foundation since 1988, and has been active in her philanthropy for over 50 years. She serves as a member of the Development Committee of the University Hospitals Board of Directors, and in addition, she serves as Chair of the MacDonald Women’s Health Leadership Council. She has been on the Board of the Arthritis Foundation Northeastern Ohio Chapter for 20 years, and serves on the Hunger Network Board. Finally, she was a member of the Board at Laurel School for over 10 years. Mrs. Ruhlman brings her vast experience based not only on long-standing tenure with the Company, but also with her extensive exposure to other entities via her volunteer work. She has the skills and capacity to provide strategic insight and direction by encouraging innovations and evaluating strategic decisions.
The Board has determined that Messrs. Corlett, Frymier, Gascoigne, Gibbons Kestner and GascoigneKestner are independent under the NASDAQ’s corporate governance rules. In the opinion of the Board, Mr. Kestner’s affiliation with Baker & Hostetler LLP, a law firm that regularly provides legal services to the Company, does not interfere with Mr. Kestner’s exercise of independent judgment in carrying out his duties as a director of the Company.
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Nominating Committee
The Board does not have a Nominating Committee nor any charter with respect to nominations. However, pursuant to NASDAQ corporate governance rules, any Board nominees must be recommended for Board selection by a majority of the Company’s independent directors. The independent directors are responsible for ensuring that the members of the Board of Directors possess a variety of knowledge, experience and capabilities derived from substantial business and professional experience, based on an assessment of numerous factors such as age and understanding of and experience in manufacturing, technology, finance and marketing. The Board considers whether potential candidates will satisfy the independent standards for the Board, Audit Committee and Compensation Committee. Additionally, nominees for the Board of Directors should be committed to enhancing long-term shareholder value and must possess a high level of personal and professional ethics, sound business judgment and integrity. Finally, the Board welcomes nominees with diverse backgrounds, not only in gender and ethnicity, but also in particular experience such as banking, international business, government, and health care. To this end, the independent directors rely on their networks of contacts to compile a list of potential candidates, and may also consider qualified candidates suggested by officers, employees, shareholders and others, using the same criteria to evaluate all candidates. While the Board considers diversity in its evaluation of candidates and is committed to expanding the Board’s diversity, the Board does not have a policy specifically focused on the consideration of diversity.
The independent directors will also consider nominees for election to the Board from shareholders. To recommend a prospective nominee, submit the candidate’s name and qualifications to Caroline Vaccariello, General Counsel and Corporate Secretary, in writing to the following address: 660 Beta Drive, Mayfield Village, Ohio, 44143.
Audit Committee
The Board of Directors has appointed an Audit Committee, comprised of Messrs. Gibbons (chairman), Corlett, Frymier and Gascoigne, each of whom qualifies as independent for audit committee purposes under the NASDAQ rules. The Board of Directors has determined that Michael E. Gibbons is an audit committee financial expert and that each member meets the requirements under the NASDAQ rules regarding the ability to read and understand financial statements.
The Audit Committee of the Board of Directors assists the Board of Directors in fulfilling its responsibility relating to corporate accounting, reporting practices of the Company, and the quality and integrity of the financial reports and other financial information provided by the Company to the NASDAQ, the Securities and Exchange Commission or the public. The Audit Committee also engages the independent registered public accountants for the Company, reviews with the independent registered public accountants the plans and results of audit engagements, preapproves all professional services provided by the independent registered public accountants including audit and non-audit-related services, reviews the independence of the independent registered public accountants, approves the range of audit and non-audit fees, reviews the independent registered public accountants’ management letters and management’s responses, reviews with management theirits conclusions about the effectiveness of the Company’s disclosure controls and procedures, and reviews significant accounting or reporting changes. Management does not approve professional services provided by the independent public accountants for audit and non-audit-related services. The Audit Committee is governed by a written charter, which is available on the Company’s website www.preformed.comwww.plp.com.
Compensation Committee
The Board of Directors has appointed a Compensation Committee, comprised of Messrs. Corlett (chairman), Frymier, Gascoigne and Gibbons, each of whom qualifies as independent under the NASDAQ rules. The Compensation Committee administers the Company’s executive compensation program and as such, is responsible for reviewing all aspects of the compensation program for the Company’s executive officers. The Compensation Committee meets at scheduled times during the year – no less than twice – and has the authority to consider and take action by written consent. The Compensation Committee Chairman reports on Compensation Committee actions and recommendations at the Company’s Board meetings. In order to meet its responsibilities, the Compensation Committee has the authority to delegate certain of its responsibilities to subcommittees and/or officers where necessary and consistent with applicable law and to retain consultants. The Compensation Committee is governed by a written charter, which is available on the Company’s website www.preformed.comwww.plp.com. See “Compensation Discussion and Analysis” for the role of the President and Chief Executive Officer in compensation matters.
12 | Preformed Line Products Company |
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The Compensation Committee’s primary objective with respect to executive compensation is to establish programs that attract and retain key officers and managers and align their compensation with the Company’s overall business strategies, values, and performance. To this end, the Compensation Committee has established, and the Board of Directors has endorsed, an executive compensation philosophy to compensate executive officers based on their responsibilities and the Company’s overall annual and long-term performance, which is outlined under “Directors and Executive Officers Compensation.”
Board Diversity
The Board Diversity Matrix sets forth information about the diversity of the Board of Directors in accordance with the recently adopted NASDAQ board diversity disclosure rules. Each of the categories listed below has the meaning as used in NASDAQ Rule 5605(f).
Board Diversity Matrix (as of March 24, 2023) | ||||
Total Number of Directors | 9 | |||
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| Female | Male | Non-Binary | Did Not Disclose Gender |
Part 1: Gender Identity | 1 | 4 |
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Directors |
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Part 2: Demographic Background |
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African American or Black |
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Alaskan Native or Native American |
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Asian |
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Hispanic or Latinx |
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Native Hawaiian or Pacific Islander |
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White |
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Two or More Races or Ethnicities |
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LGBTQ+ |
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Did Not Disclose Demographic Background |
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Each Board member brings an array of perspectives and skills to the board. Although the Company has not adopted a formal diversity policy for the Board of Directors, the Company will consider future director candidates for the value they contribute as women and/or as members of underrepresented minorities or the LGBTQ+ community and seek to enhance the Board’s diversity in this regard.
Meetings
In 2020,2022, the Board of Directors held sixtwelve meetings. In 2020,2022, the Audit Committee held four meetings and the Compensation Committee held threefour meetings. All of the directors attended at least 75% of the total of meetings held by the Board of Directors and all committees on which the director served. The directors are expected to attend the Company’s annual meeting of shareholders, and all the directors except Mr. Frymier attended last year’s annual meeting of shareholders.
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In accordance with its charter, the Audit Committee assists the Board of Directors in fulfilling its responsibility relating to corporate accounting, reporting practices of the Company, and the quality and integrity of the financial reports and other financial information provided by the Company to NASDAQ, the Securities and Exchange Commission or the public. Management is responsible for the financial statements and the reporting process, including the system of internal controls. The independent registered public accountants are responsible for expressing an opinion on the conformity of the audited financial statements with generally accepted accounting principles. The Audit Committee is comprised of four directors who are not officers or employees of the Company and are “independent” under the current NASDAQ rules.
In discharging its oversight responsibility as to the audit process, the Audit Committee reviewed and discussed the audited financial statements of the Company for the year ended December 31, 2020,2022, with the Company’s management. The Audit committeeCommittee reviewed with the independent auditor, which is responsible for expressing an opinion on the conformity of those audited consolidated financial statements and related schedules with US generally accepted accounting principles, its judgments as to the quality, not just the acceptability, of the Company’s accounting principles and such other matters as are required to be discussed with the Audit Committee by the standards of the Public Company Accounting Oversight Board (United States) (PCAOB)(“PCAOB”), including PCAOB Auditing Standard No. 1301, Communications with Audit Committees, the rules of the Securities and Exchange Commission, and other applicable regulations. In addition, the Audit Committee has discussed with the independent auditor the firm’s independence from the Company management and the Company, including the matters in the letter from the firm required by PCAOB Rule 3526, Communication with Audit Committees Concerning Independence, and considered the compatibility of non-audit services with the independent auditors’ independence.
Based on the above-referenced review and discussions with management and the independent auditors, the Audit Committee recommended to the Board of Directors that the Company’s audited financial statements and management’s assessment of effectiveness of the Company’s internal control over financial reporting be included in its Annual Report on Form 10-K for the year ended December 31, 2020,2022, for filing with the Securities and Exchange Commission.
Michael E. Gibbons, Chairman |
Glenn E. Corlett |
Matthew D. Frymier |
Richard R. Gascoigne |
14 2023 Proxy Statement | Preformed Line Products Company |
The Company’s policies and overall actual compensation practices for all employees do not create risks that are reasonably likely to have a material adverse effect on the Company. Generally speaking, the compensation policies are consistent for all business units of the Company. Additionally, incentives are not designed to, and do not, create risks that are reasonably likely to have a material adverse effect on the Company as the incentives generally reward growth and profitability. The Company’s various bonus programs are based on consistent growth of the Company, relying, for example, on the total return on investment, or including language that requires any increases in sales to be on appropriate and consistent margins. As such, they do not encourage employees to take risks in order to receive incentive compensation, nor are they reasonably likely to have a material adverse effect on the Company.
The Company has a policy against short sales of the Company’s securities and hedging transactions or financial instrumentsinvestments involving the Company’s securities, including prepaid variable forward contracts, equity swaps, collars and exchange funds. This policy applies to all directors, officers and certain designated employees.
| Preformed Line Products Company | 2023 Proxy Statement 15 |
Compensation Discussion and Analysis
Highlights of the Compensation Program
Maintain an executive compensation program to mitigate undue risk
• | Maintain an executive compensation program to mitigate undue risk |
Maintain stock ownership guidelines for directors and officers that align the interests of the directors and executive officers with the long-term interests of the shareholders
• | Award annual incentive compensation subject to achievement of objective and pre-established performance goals tied to operational and strategic objectives |
Award annual incentive compensation subject to achievement of objective and pre-established performance goals tied to operational and strategic objectives
• | Ensure that at least 50 percent of CEO’s target core compensation is at risk |
Ensure that at least 50 percent of CEO’s target core compensation is at risk
• | Benchmark officer compensation around market median |
Benchmark officer compensation around market median
• | Maintain stock ownership guidelines for directors and officers that align the interests of the executive officers with the long-term interests of the shareholders |
Role of the Compensation Committee
The Compensation Committee (the “Committee”) administers the Company’s executive compensation programs. The Committee’s primary role is to oversee the Company’s compensation and benefit plans and policies for its elected executive officers, including the executive officers listed in the Summary Compensation Table below (“NEOs”) who are the Company’s principal executive officer (Robert G. Ruhlman, Chairman, President and Chief Executive Officer), principal financial officer (formerly, Michael A. Weisbarth, Vice President – Finance and Treasurer, and currently, Andrew(Andrew S. Klaus, Chief Financial Officer) and the three other most highly compensated executive officers. The Committee reviews and approves all executive compensation decisions relating to the officers, including all NEOs.
In the performance of its duties, the Committee has the authority to allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to a committee formed for that purpose, subject to approval from the entire Board. Additionally, the Committee may select and appoint outside consultants to assist it.
Philosophy of the Compensation Program
The philosophy of the Committee is to provide a compensation program that will attract, motivate and retain key members of the leadership team in order to give the Company a competitive advantage while ensuring the success and growth of the Company. The compensation program should ensure that a significant portion of compensation will be directly relatedrelates to the Company’s performance by tying annual cash bonus and long-term incentive awards to Company performance. The compensation program is intended to motivate the officers to enable the Company to achieve its short-term and long-term business goals. The Committee has three goals to guide it in this endeavor: (a) compensation paid to officers should be alignedalign with the performance of the Company on both a long- and short-term basis; (b) compensation should be competitive within the employment environment; and (c) compensation should be designed to reward officers for meeting performance targets.
Compensation Program
The Committee strives to craft a compensation program that pays the officers at competitive levels reflective of their individual responsibilities while maintaining consistency and pay equity among the individual officers. The Committee conducts an annual review of the compensation program, as well as changes in the overall composition of the management team and the responsibilities of the individual officers, to ensure that the compensation is competitive within the market, supports retention objectives and is internally equitable. Reliance upon various tools, and the findings from such tools, assists the Committee in its analysis, and leads to decisions regarding the mix of the various compensation elements to be included. Additionally, the cost of the compensation program is considered, in recognition that the optimal compensation program motivates employees to improve Company results on a cost-effective basis. Typically, the Committee finalizes compensation elements for a calendar year in December of the prior year.
Tools and Findings from Analysis. The Committee relies upon several tools to analyze the compensation program internally and within the competitive landscape. Historically, these tools have been outside data compiled by various consultants, tally sheets detailing overall compensation packages for each individual officer and discussions with the CEO regarding performance levels and goals. The Committee also considers the results of the most recent non-binding advisory “say on pay” vote of the Company’s shareholders on executive compensation.
16 2023 Proxy Statement | Preformed Line Products Company |
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Consultant. The Committee has the authority to retain its own advisor. For 2020,2022, the Committee retained Grant Thornton (“GT”) to act as the Committee’s independent consultant. The scope of work involved providing a review of executive compensation levels anddid not retain an analysis of the Company’s annual and long-term incentive program designs (including any recommended changes). Specifically, GT compared the Company’s executive compensation to other companies of similar industry, size and geography. GT used published and custom surveys to analyze how the Company’s executives��� salaries, bonuses, long-term incentive plans and benefits compare to other similar companies.advisor.
Peer GroupExternal Data. The first action performed to help determine the competitiveness of the pay levels, as well as demonstrate the alignment of the pay and performance relative to peers, was to create peer groups to find a reliable group of market data from companies of similar size and industry. GT identified a peer group , which is comprised of companies in the “Industrials” sector that had annual revenues and market caps near 0.5x to 2.0x of the Company. The companies are Applied Optoelectronics, AZZ Inc, Bel Fuse Inc, CECO Environmental Corp., Chase Corp., Ducommun Inc., Encore Wire Corp., Houston Wire & Cable Co., Insteel Industries, Lawson Products, Lydall, Inc., NeoPhotonics Corp., NN, Inc., Powell Industries, TESSCO Technologies, and Thermon Group Holdings. This group was used as the primary comparator against which executive pay levels, pay program design and director compensation was benchmarked to determine the Company’s competitiveness. However, while this peer group was generally comparable in terms of company size and general industry, the Committee believes that the Company’s business is more complex and has more extensive international operations than the GT-selected peer group, and the Company’s performance was above the median for the peer group.
Analysis. The Committee generally strives to compensate the officers at median within a few years of service. In general, GT found that the Company’s officers are positioned appropriately relative to market levels with most amounts near the market median. As a result, no changes were made to the compensation amounts. Officers’ salaries are on average 8% below the 50th percentile while total cash compensation is on average 10% below the 50th percentile. More specifically, the Company’s target annual incentives are well aligned with market levels. For the Annual Incentive Plan and long-term incentive grants, GT reviewed the metrics and structure of the plans. GT noted that using an earnings-related metric (e.g., pre-tax income or EBITDA) for the Annual Incentive Plan and a capital-based return metric (e.g., return on capital or return on invested capital) for the long-term incentives would be more in line with market practice. The Committee, however, determined that the current metrics described below (return on equity for the Annual Incentive Plan, growth in pre-tax income, and sales growth for the long-term incentives), provide appropriate alignment of pay for performance. GT recommended that the Company orient the Annual Incentive Plan to be based on target annual incentives, not maximum values, and the Committee implemented this change. GT also recommended adjusting performance goals so that the grant date fair value of the awards are not calculated at maximum to ensure that “target” performance represents a true target goal, and the Committee agreed with this change. GT reviewed the retention objectives of the compensation program and no changes were deemed necessary by the Committee.
External Data. The Committee generally relies upon various independent surveys, which are matched to specific positions with similar functional descriptions as those for the officers. The Committee reviews surveys primarily to gain perspective on how the Company’s executive compensation compares to other similarly-sized companies so that it can assess whether the Company’s pay levels are generally competitive and represent a reward for strong performance. For 2020,2022, the Committee also utilized the Willis Towers Watson annual compensation level survey. Using this independent survey, the Committee analyzed the compensation paid to officers, including the CEO, compared against the compensation paid to executives holding equivalent positions in the peer classification group, consisting of surveyed manufacturers of durable goods with employment levels of between 1,000 and 4,999 (the “Peer Group”). The survey did not include any revenue limitations as using such limitations would have resulted in a peer group that was too small to be statistically relevant. The Committee reviews base salary and total compensation at the 25th, median and 75th percentile levels to highlight where the Company’s compensation is relative to peers for competitive purposes and takes into accountconsiders the individual’s experience and performance and the Company’s results. For 2020,2022, the officers, including the CEO, were near the median when reviewing base salary alone. The Committee reviews salaries on a bi-annual basis and decided that salary levels that are near the median were appropriate for 2020, given the sales and operating income levels achieved by the Company.
The Committee also reviews total cash compensation, which included salary and the maximum available bonus for the officers and compares that data with the Peer Group data. The Committee does not engage in specific benchmarking when comparing total compensation to the Peer Group because this peer group is not tailored to the Company’s size and a significant portion is tied to the Company’s performance, which can cause a great variation relative to the amounts paid by comparable companies with different performance results. As a result, the Committee considers the total compensation paid by other companies in the Peer Group to ensure that the Company’s pay is competitive and to assess whether its
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payout levels for strong performance represent an incentive to achieve such performance. For 2020,2022, total compensation of the officers was found to align near the median depending on the actual payout to be achieved.
Results of 2020 Say on Pay Vote and the Say on Frequency Vote. The 2020 annual meeting included a non-binding advisory “say on pay” vote on executive compensation. Although this vote was non-binding, the Board of Directors and the Committee value the opinions of the shareholders and consider the outcome of this vote when making compensation decisions for the Company’s NEOs. The Company’s compensation program received an affirmative vote from over 82% of the Company’s common shares who voted at the 2020 annual meeting and the Board and the Committee have considered this perspective with respect to executive compensation decisions. At this year’s annual meeting, the Company’s shareholders are being asked to cast a non-binding advisory “say-on-pay” vote on executive compensation and a non-binding advisory “say-on-frequency” vote regarding the frequency at which the Company will ask its shareholders to provide the advisory vote on executive compensation.
Discussions with the CEO. The CEO performs a yearly evaluation of the performance of each officer.officer (other than the CEO). The CEO’s assessment of each officer’s individual performance forms the basis for the proposed compensation levels of each officer (other than the CEO), in light ofconsidering the information derived from the aforementionedWillis Towers Watson survey. The CEO provides an evaluation for each officer (other than the CEO) that includes his recommendations for salary adjustments for the subsequent year to the Committee, which weighs these recommendations in determining salary levels of the officers (other than the CEO).
Results of 2020 Say on Pay and Say on Frequency Votes. As determined by the shareholders in the 2017 meeting, and approved by the Board, the Company includes a say on pay vote every three years. The 2020 annual meeting included a non-binding advisory “say on pay” vote on executive compensation and a non-binding advisory “say on frequency” vote to determine whether shareholders would be asked to cast a vote on executive compensation every year, every two years or every three years. Although these votes were non-binding, the Board of Directors and the Committee value the opinions of the shareholders and consider the outcome of these votes when making compensation decisions for the Company’s NEOs. The Company’s compensation program received an affirmative vote from over 82% of the Company’s common shares who voted at the 2020 annual meeting and the Board and the Committee will consider this perspective with respect to future executive compensation decisions.
Compensation Elements. The Company recognizes that its success depends, in large part, on a leadership team with the skills and commitment necessary to successfully manage a global organization. The compensation program assists in achieving this objective by relying on the elements of compensation detailed below. Certain elements are designed to enable the Company to attract and retain the officers with the skills to anticipate and respond to the market, while other elements are intended to motivate the officers to achieve financial results to enhance shareholder value. The Company’s 20202022 compensation program for officers consisted of the following elements:
Base salaries;
• | Base salaries; |
Annual cash incentive awards;
• | Annual cash incentive awards; |
Long-term equity grants;
• | Long-term equity grants; |
Retirement benefits; and
• | Retirement benefits; and |
• | Health and welfare benefits. |
Preformed Line Products Company | 2023 Proxy Statement 17 |
Health and welfare benefits.
DIRECTORS AND EXECUTIVE OFFICERS COMPENSATION |
Compensation Discussion and Analysis |
The Company structures the total compensation program so that its reliance on any particular element of compensation is flexible. Thus, the compensation program strives to meet the goals outlined above, by balancing short-term (i.e., base salaries and annual cash incentive awards) and long-term incentives (i.e., long-term equity grants), competitively in the market and to address the volatility in the Company’s performance due to external factors. There is no difference in the policies and their application for each of the officers, except for the CEO.
Base Salaries. The Company’s goal is to establish salaries at a level sufficient to attract and retain talented executives. This goal is based on the Company’s belief that it is important to maintain salary levels near a midpoint of comparable company executives to be competitive within the general market and the Peer Group.
Annual Cash Incentive Awards. The annual cash incentive award is designed to motivate and reward the officers for their contributions to the Company’s performance by making a significant portion of their total compensation variable and dependent upon the Company’s annual financial performance. It is tied directly to the financial performance of the Company on a sliding scale of return on shareholders’ equity. The Committee believes that compensating management by aligning compensation with shareholders’ return on their investment is an effective way to connect the achievement of performance goals and to encourage growth in the Company while rewarding officers for their contributions. The calculation is based on the Company’s pre-tax income as a percentage of average shareholder’s equity (adjusted for foreign currency translation) and assessed over a range of 3% to 11%. The implied target is 7%, which assumes a linear, symmetrical bonus curve with one-half of the maximum bonus earned at the midpoint of the performance range. From this calculation, the awards are determined based on a schedule that provides certain percentages to be applied to base salaries. The Company’s calculation for the annual cash incentive award for 20202022 was 14.6%21.0%, which resulted in a payout of 100% for the CEO and 85% for the other NEOs. The maximum bonuses are 100% of salary for the CEO and 85% of salary for the other officers. TheAdditionally, discretionary cash bonuses can be provided for extraordinary contributions to the Company’s financial performance through exemplary leadership in challenging circumstances. These are provided only when such circumstances warrant and do not occur regularly. In 2022, the Compensation Committee approved an additional 10% discretionary bonus for Mr. Robert G. Ruhlman due to his successful managementthe achievement of the Company through the impacts of the COVID-19 pandemicrecord financial results in 2020 to emphasize both employee safety and addressing the increased needs of our customers.
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2022.
Long-term Equity Grants. The Committee has the discretion under the Company’s equity award plansplan to set the amounts and terms of any equity compensation and may vary the equity award program from year to year to address the Company’s then-current compensation objectives and strategic goals. The Committee believes that the Company’s shareholders will be well served if a greater percentage of the long-term equity incentive program is related to achievement of the Company’s Board-approved strategic objectives. To that end, the “balanced LTI program” consisting of service vested restricted share units (RSUs)(“RSUs”) and performance vested RSUs is a way to achieve its objectives. Generally, performance-vesting aligns executive long-term incentive rewards more directly with shareholders’ interests since achieving strategic objectives is a better measure of management’s performance than the volatility of the stock market. Furthermore, the Committee believes that the shareholders are served well by decisions that further the Company’s long-term strategic plan. The Committee also believes that the CEO’s long-term incentive should generally be 100% dependent on the achievement of the Company’s strategic objectives. Nevertheless, the Committee believes that it is appropriate to include some service vested RSUs in the long-term incentive program of the other officers in order to encourage retention of key executives over the duration of a business cycle. Additionally, upon vesting, it was mandated that the officers defer receipt of the shares received from the grants in 2009 through 2013 until, at the earliest, their retirement/termination date. This policy was replaced by theCompany has mandatory share ownership guidelines, as discussed below in 2014.below.
Long-term incentive grants are issued under the 2016 Incentive Plan (“2016 Plan”),LTIP, which was approved by the Board and by the shareholders in 2016. The CEO’s typical annual equity compensation awards are performance-based RSUs, vesting in three years based upon achieving performance standards approved at the time of the grant by the Board. The typical annual equity compensation awards to the other participants are as follows: two-thirds of the award is performance-based RSUs, vesting in three years based on achieving performance standards approved at the time of the grant by the Board, and one-third of the award is service-based RSUs, vesting three years after the date of the grant based solely on continued employment by the Company. The Committee chose to emphasize performance over three years (rather than weigh performance and service equally), because it believes this approach aligns the Company’s performance with shareholders’ interests, while acknowledging the benefit from long-term service.
18 2023 Proxy Statement | Preformed Line Products Company |
DIRECTORS AND EXECUTIVE OFFICERS COMPENSATION |
Compensation Discussion and Analysis
For the performance-based RSUs, the number of shares in which the participant becomes vested will depend upon the specific level of growth in pre-tax income and sales growth measured over a specified period (historically, either one-year or three-year performance period), with thresholds for pre-tax income growth and for sales growth ranging from 0% to 15%. The threshold payout is at 25% of the maximum number of performance-based RSUs if both measures are achieved, the target is at 50% if both 7% growth in pre-tax income and 7% growth in sales are achieved, and the maximum is at 100% of the number of RSUs subject to the award if 10% growth in pre-tax income and 10% growth in sales are achieved at the end of the performance period. If only one of the two measures is achieved at any of these levels, the vesting percentage is weighted to provide for some additional vesting for achieving the higher measure. Dividends declared on unvested RSUs are accrued as cash distributions payable upon vesting.
For the 20202022 grants, the Committee once again analyzed the history of the RSU grants, and whether such grants effectively aligned the interests of the NEOs with the Company’s interests, taking into account industry data and input from officers regarding the Company’s markets, projections and costs. The Committee’s intention is to incentivize management to grow the Company while maintaining profit margins. Given the economic conditions and volatile Company performance over the past several years and the challenges in forecasting the external factors that drive the Company’s sales, theThe Committee uses a three-year base to measure growth during the performance period with thresholds for pre-tax income growth and set the performance metrics at thefor sales growth percentages discussed above. The Committee recommended and the Board approved the grants in February 2020ranging from 5% to each of the officers, including the CEO.10%.
The CEO’s award is set at a number of RSUs equal to 100% of the CEO’s salary if target performance is achieved, with a maximum award equal to 200% of his salary if the maximum performance is achieved.
The awards to the other officers are as follows: the award is set at a number of RSUs equal to that percentage of participant’s salary that is specified at the time of grant if target performance is achieved. The maximum amount of the performance portion of the award is equal to two times100% of the target award. The amount of the service-vested award that can be earned is equal to the target award. Each officer was granted the number of RSUs equal to the maximum level under the performance criteria.
The threshold payout is at 25% of the maximum number of performance-based RSUs if both measures are achieved, the target is at 50% if both 7% growth in pre-tax income and 7% growth in sales are achieved, and the maximum is at 100% (200% for the CEO) of the number of RSUs subject to the award if 10% growth in pre-tax income and 10% growth in sales are achieved at the end of the three-year period. If only one of the two measures is achieved at any of these levels, the vesting percentage is weighted to provide for some additional vesting for achieving the higher measure. Dividends declared on unvested RSUs are accrued as cash distributions payable upon vesting.
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The Committee recommended and the Board approved the grants in February 2022 to each of the officers, including the CEO.
Retirement Benefits. The Company believes that retirement benefits are an important component of total compensation. The Company’s primary retirement benefit consists of the Company’s 401(k) and profit-sharing planProfit-Sharing Plan under which all eligible salaried U.S. employees of the Company, including officers, participate starting in their third year of employment. The amount the Company provides to the profit-sharing planProfit-Sharing Plan is based on the recommendation of management, with the Board’s approval. Typically, the Company’s contribution under this plan is approximately 15% of the then-current year’s cash compensation, which is consistent with the amount contributed for all full-time salaried U.S. employees of the Company, including the cash incentive award. When calculating the Company’s contributions under the profit-sharing plan,Profit-Sharing Plan, the Company does not consider gains from prior awards. Every aspect of this plan is the same for all salaried U.S. employees, including officers. Thus, each salaried participant elects the investment options with the same options offered to all salaried employees and officers. The plan does not involve any guaranteed minimum return or above-market returns; rather, the investment returns are dependent upon actual investment results. To the extent an employee’s award exceeds the maximum allowable contribution permitted under existing tax laws, the excess is accrued for (but not funded) under a non-qualified Supplemental Executive Retirement Plan.Plan (the “SERP”). The returns under this Supplemental Executive Retirement Planthe SERP are also dependent upon actual investment results, as each participant is allowed to elect investment options for that participant’sits liability balance.
Executive Perquisites. Perquisites and other personal benefits do not comprise a significant aspect of the Company’s compensation program. Although officers participate in the same benefit programs as the Company’s other employees, the Company provides a few additional benefits to its officers. These benefits are designed to enable the officers to balance their personal, business and travel schedules. In 2020,2022, benefits included the Company’s payment of club dues for twothree of the NEOs as indicated in the accompanying Summary Compensation Table. The Company also pays annual dues for Robert G. Ruhlman at a club located near the Company’s Rogers, Arkansas facility. This benefit is also provided to other officers and fourthree non-officer employees, primarily for business entertainment purposes. Except as described here, the Company aircraft is available to all the employees, including the officers and directors, for business-related travel only. The CEO is permitted to use the Company’s aircraft for personal purposes, as shown on the Summary Compensation Table. The Company also makes personal financial advice available to the CEO and tax advice available to all its officers.
Preformed Line Products Company | 2023 Proxy Statement 19 |
DIRECTORS AND EXECUTIVE OFFICERS COMPENSATION |
Compensation Discussion and Analysis
Ownership Guidelines. In 2009, the Board established a requirement that the NEOs defer receipt of all shares received upon vesting of RSUs until retirement or termination of employment. Upon advice from Aon Hewitt during its 2013 engagement, the Committee determined that ownership guidelines would provide a more flexible way to ensure executives maintain sufficient ownership position in the Company. In February 2014, the Committee recommended and the Board approved ownership guidelines to ensure that the NEOs have a stake in the future of the Company in lieu of the deferral requirement. The ownership guidelines require the CEO to hold six times his annualized base salary in equity of the Company, and the other officers to hold three times their annualized base salaries. The ownership guidelines state that the types of equity that count toward the ownership requirement are stock owned directly, stock owned in a Company-sponsored retirement plan, and the unvested portion of RSUs that are subject only to time-vesting. Each covered executive will have up to five years from the effective date of the 2014 ownership guidelines or the date such person becomes a covered executive to meet the stock ownership requirement. All current executive officers have met the requirement, other than Mr. Klaus who joined the Company in 2019,2020 and Messrs. O’Shaughnessy and Olenik who were elected Vice Presidents in 2019 and 2020, respectively.
Tax Deductibility of Pay. Section 162(m) of the Internal Revenue Code of 1986 places a limit of $1 million on the amount of eligible compensation that a company may deduct in any one year with respect to each of its NEOs. FourThree officers, including the CEO, were above this threshold in 2020.2022. As a result of the Tax Cuts and Jobs Act enacted in December 2017, the performance-based compensation exception has been eliminated for taxable years beginning after December 31, 2017, which may result in lost tax deductions going forward.
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The Committee has reviewed and discussed with management the foregoing Compensation Discussion and Analysis, and based on the review and discussion, the Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement.
Glenn E. Corlett, Chairman |
Matthew D. Frymier |
Richard R. Gascoigne |
Michael E. Gibbons |
Applicable SEC rules require that we provide a reasonable estimate of the ratio of the annual total compensation of our Chief Executive Officer to the median of the annual total compensation of our other employees. We determined our median employee based on taxable compensation (annualized in the case of full- and part-time employees who joined the Company during 2020)2022) of each of our 2,9683,260 employees (excluding the Chief Executive Officer) as of December 31, 2020.2022. The annual total compensation of our median employee (other than the Chief Executive Officer) for 20202022 was $18,449.$21,540. As disclosed in the Summary Compensation Table appearing on page 21, our Chief Executive Officer’s annual total compensation for 20202022 was $5,155,604.$4,587,518. Based on the foregoing, our estimate of the ratio of the annual total compensation of our CEO to the median of the annual total compensation of all other employees was 279213 to 1. Over 75%Approximately 70% of our employees work in our foreign subsidiaries, which traditionally have lower salaries. Given the different methodologies that various public companies will use to determine an estimate of their pay ratio, the estimated ratio reported above should not be used as a basis for comparison between companies.
20 | Preformed Line Products Company |
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The table below describes the compensation earned in the last three fiscal years for our NEOs.
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| Non-Equity |
| All |
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| Non-Equity |
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| All |
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| Stock |
| Incentive Plan |
| Other |
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| Stock |
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| Incentive Plan |
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| Other |
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Name and |
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| Salary |
| Awards |
| Compensation |
| Compensation | Total |
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| Salary |
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| Awards |
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| Compensation |
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| Compensation | Total |
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Principal Position | Year |
| ($) |
| ($) (1) |
| ($) (2) |
| ($) (3) |
| ($) |
| Year |
| ($) |
|
| ($) (1) |
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| ($) (2) |
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| ($) (3) |
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| ($) |
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Robert G. Ruhlman |
| 2020 |
| 925,008 |
| 2,433,539 |
| 1,017,509 |
| 779,548 |
| 5,155,604 |
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| 2022 |
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| 975,000 |
|
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| 1,889,622 |
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| 1,072,500 |
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| 650,396 |
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| 4,587,518 |
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Chairman, President and |
| 2019 |
| 866,700 |
| 2,268,388 |
| 866,700 |
| 792,463 |
| 4,794,252 |
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| 2021 |
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| 925,008 |
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| 1,920,858 |
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| 1,017,509 |
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| 896,844 |
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| 4,760,219 |
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Chief Executive Officer |
| 2018 |
| 866,700 |
| 2,252,804 |
| 866,700 |
| 280,763 |
| 4,266,967 |
|
| 2020 |
|
| 925,008 |
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| 2,433,539 |
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| 1,017,509 |
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| 779,548 |
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| 5,155,604 |
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Michael A. Weisbarth (through 4/9/20) |
| 2020 |
| 74,769 |
| — |
| 63,554 |
| 85,241 |
| 223,564 |
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Vice President - Finance and |
| 2019 |
| 260,004 |
| 340,199 |
| 221,003 |
| 77,132 |
| 898,339 |
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Treasurer |
| 2018 |
| 250,008 |
| 324,910 |
| 212,507 |
| - |
| 787,425 |
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Andrew S. Klaus (from 4/13/20) |
| 2020 |
| 266,595 |
| — |
| 226,606 |
| 3,646 |
| 496,847 |
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Andrew S. Klaus |
| 2022 |
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| 400,008 |
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| 387,622 |
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| 340,007 |
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| 11,734 |
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| 1,139,371 |
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Chief Financial Officer |
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| 2021 |
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| 370,008 |
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| 384,200 |
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| 314,507 |
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| 15,294 |
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| 1,084,009 |
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| 2020 |
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| 266,595 |
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| — |
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| 226,606 |
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| 3,646 |
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| 496,847 |
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Dennis F. McKenna |
| 2020 |
| 470,004 |
| 618,208 |
| 399,503 |
| 281,096 |
| 1,768,811 |
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| 2022 |
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| 575,004 |
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| 557,200 |
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| 488,753 |
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| 192,821 |
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| 1,813,778 |
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Chief Operating Officer |
| 2019 |
| 430,008 |
| 562,739 |
| 365,507 |
| 102,911 |
| 1,461,165 |
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| 2021 |
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| 500,004 |
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| 519,188 |
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| 425,003 |
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| 283,836 |
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| 1,728,031 |
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| 2018 |
| 400,008 |
| 519,901 |
| 340,007 |
| 116,205 |
| 1,376,121 |
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| 2020 |
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| 470,004 |
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| 618,208 |
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| 399,503 |
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| 281,096 |
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| 1,768,811 |
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David C. Sunkle |
| 2020 |
| 360,000 |
| 473,516 |
| 306,000 |
| 130,389 |
| 1,269,905 |
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Vice President - Research and |
| 2019 |
| 335,004 |
| 438,359 |
| 284,753 |
| 144,462 |
| 1,202,578 |
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Engineering and Manufacturing |
| 2018 |
| 320,004 |
| 415,906 |
| 272,003 |
| 90,139 |
| 1,098,052 |
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William H. Haag III |
| 2020 |
| 320,004 |
| 420,928 |
| 272,003 |
| 245,548 |
| 1,258,483 |
|
| 2022 |
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| 340,008 |
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| 329,480 |
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| 289,007 |
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| 131,307 |
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| 1,089,802 |
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Vice President - AsiaPac Region |
| 2019 |
| 307,200 |
| 402,020 |
| 261,120 |
| 187,521 |
| 1,157,861 |
|
| 2021 |
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| 320,004 |
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| 332,260 |
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| 272,003 |
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| 270,200 |
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| 1,194,467 |
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| 2018 |
| 307,200 |
| 399,213 |
| 233,472 |
| 49,207 |
| 989,092 |
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| 2020 |
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| 320,004 |
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| 420,928 |
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| 272,003 |
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| 245,548 |
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| 1,258,483 |
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J. Ryan Ruhlman |
| 2022 |
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| 370,008 |
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| 358,551 |
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| 314,507 |
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| 158,281 |
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| 1,201,347 |
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Vice President - Marketing and |
| 2021 |
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| 330,000 |
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| 342,677 |
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| 280,500 |
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| 153,748 |
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| 1,106,925 |
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Business Development |
| 2020 |
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| 300,000 |
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| 394,634 |
|
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| 255,000 |
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| 106,641 |
|
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| 1,056,275 |
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(1) | Reflects the dollar amount of the grant date fair value, as determined in accordance with Financial Accounting Standard Board |
(2) | Reflects the dollar amount of the payout under the Company’s Annual Non-Equity Incentive Plan based on a sliding scale of the Company’s return on shareholders’ equity, ranging from 3% (for the threshold payout) to 11% (for the maximum payout), with target payout at 7%. The percentage achieved within this range determined the dollar amount of the award based on a percentage of salary, which is a maximum of 100% for Robert G. Ruhlman and 85% for the other NEOs, in each case, subject to the Compensation Committee’s discretion as to |
| Preformed Line Products Company |
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(3) |
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a. The Company’s required contributions under the SERP for the year ended December 31, 2022 and the amounts grossed up for applicable local taxes on the NEO’s 2022 earnings. The amounts of such contribution is based on the amount by which an employee’s awarded Company contribution under the 401(k) and Profit-Sharing Plan exceeds the maximum allowable contribution permitted under existing tax laws, in which case, the excess is accrued for (but not funded) under the SERP. See Non-Qualified Deferred Compensation Table for additional information.
b. The personal benefits received by the NEOs, which include club dues, financial planning fees, tax preparation fees and personal use of the Company’s airplane. The aggregate incremental cost of the personal use of the corporate airplane is determined on a per flight basis and considers the cost of the fuel used, the hourly cost of aircraft maintenance for the applicable number of flight hours, landing fees, trip-related hangar and parking costs and other costs specifically incurred. Imputed income is assessed amounting to the equivalent of a first-class ticket for comparable flights.
c. The contributions to the Profit-Sharing Plan in 2022. Andrew S. Klaus was ineligible to participate in the Profit-Sharing Plan, however the Company contributed $5,800 as an eligible match to the 401k plan on his behalf.
d. The premiums paid for group term life insurance for 2022.
e. Dividends paid on shares previously deferred to retirement/termination and dividends paid on restricted shares that vested from the 2019 performance period. Andrew S. Klaus joined the Company in April, 2020 and had no such dividend payments.
| DEFERRED COMPENSATION (SERP)(a) |
| PERSONAL BENEFITS (b) |
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| DIVIDENDS (e) |
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Name and Principal Position | Deferred Compensation Contributions |
| Tax Gross Up on 2022 Contributions |
| Financial Planning and Tax Preparation Services |
| Club Dues |
| Personal Company Airplane Usage |
| Profit-sharing Contributions (c) |
| Group Life (d) |
| 2019 Restricted Share Accrued Dividends |
| Dividends on Shares Deferred to Retirement |
| Total ($) |
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Robert G. Ruhlman President and Chief Executive Officer |
| 229,755 |
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| 18,122 |
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| 39,000 |
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| 24,803 |
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| 67,965 |
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| 43,500 |
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| 28,224 |
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| 73,709 |
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| 125,318 |
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| 650,396 |
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Andrew S. Klaus Chief Financial Officer |
| — |
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| — |
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| — |
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| — |
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| — |
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| 5,800 |
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| 5,934 |
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| — |
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| — |
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| 11,734 |
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Dennis F. McKenna Chief Operating Officer |
| 89,689 |
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| 5,562 |
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| 4,986 |
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| 3,993 |
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| — |
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| 43,500 |
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| 7,482 |
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| 17,981 |
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| 19,628 |
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| 192,821 |
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William H. Haag III Vice President – AsiaPac Region |
| 42,656 |
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| 2,645 |
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| 4,986 |
|
| — |
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| — |
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| 43,500 |
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| 5,005 |
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| 12,845 |
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| 19,670 |
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| 131,307 |
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J. Ryan Ruhlman Vice President – Marketing and Business Development |
| 45,268 |
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| 27,535 |
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| 4,986 |
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| 10,174 |
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| 11,587 |
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| 43,500 |
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| 1,122 |
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| 11,290 |
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| 2,819 |
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| 158,281 |
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22 | Preformed Line Products Company |
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| Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) |
| Estimated Future Payouts Under Equity Incentive Plan Awards (2) | All Other Stock Awards: Number of | Grant Date Fair Value of Stock and Option Awards |
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| Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (2) | All Other Stock Awards: Number of | Grant Date Fair Value of Stock and Option Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) |
| Threshold (#) | Target (#) | Maximum (#) | Units (#) (3) | ($) (4) | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | Units (#) (3) | ($) (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Robert G. Ruhlman |
|
|
|
| 111,001 |
|
| 555,005 |
|
| 925,008 |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
| 117,000 |
|
|
|
| 585,000 |
|
|
|
| 975,000 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
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| |||||||||||||||||||||||||||||||||||||||||||
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|
|
|
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|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
Michael A. Weisbarth (through 4/9/20) |
|
|
|
| 7,477 |
|
| 37,385 |
|
| 63,554 |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
| |||||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||||||
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|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
Andrew S. Klaus (from 4/13/20) |
|
|
|
| 26,660 |
|
| 133,298 |
|
| 226,606 |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
| |||||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
Andrew S. Klaus |
|
|
|
|
| 40,001 |
|
|
|
| 200,004 |
|
|
|
| 340,007 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
| ||||||||||||||||||||||||||||
Dennis F. McKenna |
|
|
|
| 47,000 |
|
| 235,002 |
|
| 399,503 |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
| 57,500 |
|
|
|
| 287,502 |
|
|
|
| 488,753 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
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| |||||||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
David C. Sunkle |
|
|
|
| 36,000 |
|
| 180,000 |
|
| 306,000 |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
| |||||||||||||||||||||||||||||||||||||||||||
|
|
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| |||||||||||||||||||||||||||||||||||||||||||
|
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|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
J. Ryan Ruhlman |
|
|
|
|
| 34,001 |
|
|
|
| 170,004 |
|
|
|
| 289,007 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
| ||||||||||||||||||||||||||||
William H. Haag III |
|
|
|
| 32,000 |
|
| 160,002 |
|
| 272,003 |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
| 37,001 |
|
|
|
| 185,004 |
|
|
|
| 314,507 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
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|
|
|
|
|
|
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|
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|
|
|
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| |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
Robert G. Ruhlman |
| 2/5/20 |
|
| — |
|
| — |
|
| — |
|
|
| 8,237 |
|
| 16,474 |
|
| 32,948 |
|
| - |
|
| 1,787,429 |
|
| 2/2/2022 |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 7,987 |
|
|
|
| 15,973 |
|
|
|
| 31,946 |
|
|
|
| — |
|
|
|
| 1,889,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
Michael A. Weisbarth (through 4/9/20) |
| 2/5/20 |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
| - |
|
| — |
|
| — |
|
| — |
| |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
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|
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|
|
| |||||||||||||||||||||||||||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
Andrew S. Klaus (from 4/13/20) |
| 2/5/20 |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
| - |
|
| — |
|
| — |
|
| — |
| |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
Andrew S. Klaus |
| 2/2/2022 |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 1,092 |
|
|
|
| 2,184 |
|
|
|
| 4,369 |
|
|
|
| 2,184 |
|
|
|
| 387,622 |
|
| ||||||||||||||||||||||||||||
Dennis F. McKenna |
| 2/5/20 |
|
| — |
|
| — |
|
| — |
|
|
| 1,674 |
|
| 3,348 |
|
| 6,696 |
|
| 1,674 |
|
| 454,073 |
|
| 2/2/2022 |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 1,570 |
|
|
|
| 3,140 |
|
|
|
| 6,280 |
|
|
|
| 3,140 |
|
|
|
| 557,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
David C. Sunkle |
| 2/5/20 |
|
| — |
|
| — |
|
| — |
|
|
| 1,282 |
|
| 2,565 |
|
| 5,129 |
|
| 1,282 |
|
| 347,797 |
| |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||
J. Ryan Ruhlman |
| 2/2/2022 |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 1,010 |
|
|
|
| 2,021 |
|
|
|
| 4,041 |
|
|
|
| 2,021 |
|
|
|
| 358,551 |
|
| ||||||||||||||||||||||||||||
William H. Haag III |
| 2/5/20 |
|
| — |
|
| — |
|
| — |
|
|
| 1,140 |
|
| 2,280 |
|
| 4,559 |
|
| 1,140 |
|
| 309,171 |
|
| 2/2/2022 |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 928 |
|
|
|
| 1,857 |
|
|
|
| 3,713 |
|
|
|
| 1,857 |
|
|
|
| 329,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Reflects the dollar amount of the payout under the Company’s Annual Non-Equity Incentive Plan based on a sliding scale of the Company’s return on shareholders’ equity, ranging from 3% (for the threshold payout) to 11% (for the maximum payout), with target payout at 7%. The percentage achieved within this range determines the amount of the award based on a percentage of salary, which is a maximum of 100% for Robert G. Ruhlman and 85% for the other NEOs, in each case, subject to the Compensation Committee’s discretion as to |
(2) | Reflects the number of performance-based RSUs granted during |
(3) | Reflects the number of time-based RSUs granted during |
(4) | The value of the RSUs was calculated using the previous day closing market price of the RSUs on the grant date multiplied by the number of RSUs granted and reflects the probable total amount that the Company would expense in its financial statements over the restricted awards’ vesting period assuming service and performance goals are met, in accordance with FASB ASC Topic 718. |
| Preformed Line Products Company |
|
| OPTION AWARDS |
| STOCK AWARDS | OPTION AWARDS | STOCK AWARDS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable (2) | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) | Option Expiration Date |
| Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) (3) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (4) | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) | 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 ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) (3) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Robert G. Ruhlman |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
| — |
|
| 23,540 |
|
| 1,611,095 |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 22,908 |
|
|
|
| 1,908,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michael A. Weisbarth (through 4/9/20) (1) |
| — |
|
| - |
|
| — |
|
| - |
|
|
|
|
|
| — |
|
| — |
|
| — |
|
| — |
| |||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||||
Andrew S. Klaus (from 4/13/20) |
| — |
|
| 10,000 |
|
| — |
|
| 47.24 |
|
| 4/9/2030 |
|
|
| — |
|
| — |
|
| — |
|
| — |
| |||||||||||||||||||||||||||||||||||||||||||||
Andrew S. Klaus (1) |
|
| 2,500 |
|
|
|
| 2,500 |
|
|
|
| — |
|
|
|
| 47.24 |
|
|
| 4/9/2030 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 5,951 |
|
|
|
| 495,647 |
|
| |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dennis F. McKenna |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
| — |
|
| 12,027 |
|
| 823,111 |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 11,672 |
|
|
|
| 972,124 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
David C. Sunkle |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
| — |
|
| 9,443 |
|
| 646,296 |
| |||||||||||||||||||||||||||||||||||||||||||||
J. Ryan Ruhlman (2) |
|
| 1,250 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 42.98 |
|
|
| 12/16/2025 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 7,553 |
|
|
|
| 629,120 |
|
| |||||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
William H. Haag III |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
| — |
|
| 8,781 |
|
| 600,989 |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 7,378 |
|
|
|
| 614,482 |
|
|
|
|
|
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|
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(1) |
|
| Andrew S. Klaus was granted stock options of 10,000 shares on April 9, 2020, at a strike price of $47.24 per share, which expire April 9, 2030. |
| J. Ryan Ruhlman was granted stock options of 2,500 shares on December 16, 2015 at a strike price of $42.98, which expire on December 16, 2025. All shares were vested by December 16, 2018. As of December 31, 2022, 1,250 shares were outstanding. |
(3) | Includes (a) time-based RSUs granted in |
| The |
24 | Preformed Line Products Company |
|
| OPTION AWARDS |
| STOCK AWARDS | OPTION AWARDS |
|
|
| STOCK AWARDS | ||||||||||||||||||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) |
| Number of Shares Acquired on Vesting (#) (1) | Value Realized on Vesting ($) (1) | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) |
|
|
| Number of Shares Acquired on Vesting (#) (1) | Value Realized on Vesting ($) (1) | ||||||||||||||||||||||||
Robert G. Ruhlman |
| — |
|
| — |
|
|
| 38,001 |
|
| 2,228,759 |
|
|
| — |
|
|
|
| — |
|
|
|
|
|
|
| 30,712 |
|
|
|
| 1,987,066 |
|
|
|
|
|
|
|
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| |
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| |
Michael A. Weisbarth (through 4/9/20) |
| 3,750 |
|
| — |
|
|
| — |
|
| — |
| |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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| |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Andrew S. Klaus (from 4/13/20) |
| — |
|
| — |
|
|
| — |
|
| — |
| |||||||||||||||||||||||
Andrew S. Klaus |
|
| — |
|
|
|
| — |
|
|
|
|
|
| — |
|
|
|
| — |
|
| ||||||||||||||
|
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| |
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|
| |
Dennis F. McKenna |
| — |
|
| — |
|
|
| 8,258 |
|
| 498,116 |
|
|
| — |
|
|
|
| — |
|
|
|
|
|
| 7,769 |
|
|
|
| 533,774 |
|
| |
|
|
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| |
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|
|
|
|
| |
David C. Sunkle |
| — |
|
| — |
|
|
| 6,756 |
|
| 407,263 |
| |||||||||||||||||||||||
J. Ryan Ruhlman |
|
| — |
|
|
|
| — |
|
|
|
|
|
| 4,896 |
|
|
|
| 336,644 |
|
| ||||||||||||||
|
|
|
|
|
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| |
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|
|
|
|
|
|
|
|
|
| |
William H. Haag III |
| — |
|
| — |
|
|
| 6,846 |
|
| 412,101 |
|
|
| — |
|
|
|
| — |
|
|
|
|
|
| 5,443 |
|
|
|
| 372,407 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
(1) | Includes performance-based RSUs granted in |
Preformed Line Products Company | 2023 Proxy Statement 25 |
Name | Registrant Required Contributions for Last FY ($) (1) | Aggregate Gains/(Losses) in Last FY ($) (1) | Aggregate Balance at Last FYE ($) (2) | Executive Contributions for 2022 ($) |
| Registrant Required Contributions for 2022 ($) (1) |
| Aggregate Gains/(Losses) in 2022 ($) (2) |
| Distributions in 2022 ($) (3) |
| Aggregate Balance at December 31, 2022 ($) (4) |
|
| |||||||||||
Robert G. Ruhlman |
| 199,475 |
|
| 419,568 |
|
| 3,661,685 |
|
| — |
|
| 229,755 |
|
| (400,816 | ) |
| (1,086,161 | ) |
| 2,848,807 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Michael A. Weisbarth (through 4/9/20) |
| 25,313 |
|
| 13,910 |
|
| - |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Andrew S. Klaus (from 4/13/20) |
| - |
|
| — |
|
| - |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Andrew S. Klaus |
| 170,003 |
|
| — |
|
| (35,984 | ) |
| — |
|
| 341,548 |
|
| |||||||||
Dennis F. McKenna |
| 71,376 |
|
| 157,431 |
|
| 889,530 |
|
| — |
|
| 89,689 |
|
| (235,321 | ) |
| — |
|
| 1,094,882 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
David C. Sunkle |
| 47,339 |
|
| 23,592 |
|
| 430,553 |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
William H. Haag III |
| 36,423 |
|
| 158,379 |
|
| 696,505 |
|
| 140,253 |
|
| 42,656 |
|
| (172,992 | ) |
| — |
|
| 1,079,089 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
J. Ryan Ruhlman |
| 31,451 |
|
| 45,268 |
|
| (59,369 | ) |
| — |
|
| 296,979 |
|
|
| (1) | The Company’s required future contributions under the |
(2) | Gains and losses are calculated based on individual hypothetical investment elections in various mutual funds, which are managed by a third-party administrator. |
| (3) | Robert G. Ruhlman had a defined and pre-scheduled distribution from the SERP in 2022. |
(4) | Of the totals in this column, the following amounts have been reported in the Non-Qualified Deferred Compensation Table in the previously reported proxy statement for |
26 2023 Proxy Statement | Preformed Line Products Company |
|
All of our employees, including NEOs, are employed at-will and do not have employment, severance or change-in-control agreements. However, each LTIP plan includes a change–in-control provision which provides that in the event of a Change in Control (as defined in the Plan)each applicable LTIP plan) (a) any options outstanding which are not then exercisable and vested shall become fully exercisable and vested; and (b) unless otherwise provided in the award agreements, any restricted share units outstanding shall vest and entitle the holder to the maximum number of shares that may be earned under the award. The award agreements for the RSUs provide that in the event of a Change in Control (a) all time-based RSUs outstanding shall fully vest and entitle the holder to the maximum number of shares that may be earned under the award and (b) all performance-based RSUs outstanding shall vest and entitle the holder to receive, at the end of the performance period applicable to the award (whether or not then still employed by the Company), the number of shares that are earned based on the achievement of the performance vesting conditions in effect for the duration of the award. The following table shows the amount the Company’s NEOs would have received under the 2016 LTIP if a change in control had occurred on December 31, 2020,2022, assuming that all performance conditions of performance-based RSUs were satisfied at the maximum level and that the shares earned were issued as of December 31, 2020.2021. The amounts are equal to the value of the shares that would have vested as of December 31, 20202022 and, in the case of options, less the aggregate exercise price.
| Estimated Future Payouts Under Equity Incentive Plan Awards | ||||
Name | Stock | ||||
Robert G. Ruhlman |
|
| 7,632,051 |
| |
|
|
|
| ||
|
|
|
| ||
|
|
| 991,252 |
| |
|
|
|
| ||
|
|
|
| ||
|
|
| 1,944,248 |
| |
|
|
|
| ||
|
|
|
| ||
|
|
| 1,258,156 |
| |
|
|
|
| ||
|
|
|
| ||
|
| ||||
|
| ||||
William H. Haag III |
|
| 1,228,881 |
| |
|
|
|
|
The following details typical compensation arrangements upon retirement, resignation, death, disability, or other termination for other plans.
Profit-Sharing Plan
Upon termination of employment, the employee may receive vested contributions plus income earned on those contributions under the Company’s Profit-Sharing Plan. Upon disability, the IRS allows withdrawals to be made if the employee became permanently disabled. Upon death, the vested account balance of the employee will be paid to the designated beneficiaries.
Non-Qualified Supplemental Executive Retirement Plan (SERP)(“SERP”)
Our Supplemental Executive Retirement Plan was established in 1995 to compensate employees whose benefits in the Profit-Sharing Plan were reduced due to IRS limitations on compensation. In 2018, the Company opened an account with a third-party administrator, in which the participants are able to hypothetically invest their unfunded liability balances in various investment options, primarily mutual funds. Upon termination of employment, retirement, death, or disability, the employee may receive vested contributions plus any gains or losses on those contributions, based on pre-elections made upon the opening of their accounts. Alongside the liability accounts, there is a Company Owned Life Insurance (COLI) policy, in which the Company has investments shadowing those of the liabilities, in order to mitigate the risk associated with the unfunded liability.
| Preformed Line Products Company | 2023 Proxy Statement 27 |
Each director who is not an employee of the Company received an annual retainer fee of $45,000. Directors who are also employees are not paid a director’s fee. Additionally, board members who serve on committees are also paid an annual retainer of $10,000 plus an award of 400800 shares per committee per year, to be paid upon the completion of each calendar year, and chairpersons of each committee are paid an additional annual retainer of $10,000.
Under the Board Stock Ownership Plan, committee members are required to maintain ownership of the Company’s common shares with a minimum aggregate market value of three times the amount of the annual cash retainer paid to a director for Board service (ignoring any additional retainer fees paid for service on Board committees) (the “Ownership Requirement”), and prohibits the sale of any common shares of Company stock owned by the committee member (except to pay the exercise price of stock options or tax liability generated as a result of equity grants) until such time as the Ownership Requirement is satisfied. Each committee member will have up to five years from the effective date of the Stock Ownership Plan (2014) or the date such person becomes a committee member to meet the ownership requirement.
Name | Fees Earned or Paid in Cash ($) (1) | Stock Awards ($) (2) | All Other Compensation (3) | Total ($) | Fees Earned or Paid in Cash ($) (1) | Stock Awards ($) (2) | All Other Compensation (3) |
| Total ($) | |||||||||||||||||||||
Glenn E. Corlett |
| 75,000 |
|
| 54,752 |
|
| — |
|
| 129,752 |
|
|
| 75,000 |
|
|
|
| 66,632 |
|
|
| — |
|
|
| 141,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maegan A. R. Cross |
| 45,000 |
|
| — |
|
| 7,772 |
|
| 52,772 |
|
|
| 45,000 |
|
|
|
| — |
|
|
| — |
|
|
| 45,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Matt D. Frymier |
| 65,000 |
|
| 54,752 |
|
| 16,664 |
|
| 136,416 |
| ||||||||||||||||||
Matthew D. Frymier |
|
| 65,000 |
|
|
|
| 66,632 |
|
|
| — |
|
|
| 131,632 |
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Richard R. Gascoigne |
| 65,000 |
|
| 54,752 |
|
| — |
|
| 119,752 |
|
|
| 65,000 |
|
|
|
| 66,632 |
|
|
| — |
|
|
| 131,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michael E. Gibbons |
| 75,000 |
|
| 54,752 |
|
| — |
|
| 129,752 |
|
|
| 75,000 |
|
|
|
| 66,632 |
|
|
| — |
|
|
| 141,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R. Steven Kestner |
| 45,000 |
|
| — |
|
| — |
|
| 45,000 |
|
|
| 45,000 |
|
|
|
| — |
|
|
| — |
|
|
| 45,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
David C. Sunkle |
|
| 45,000 |
|
|
|
| — |
|
|
| 54,197 |
|
|
| 99,197 |
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1) | Directors’ fees earned by R. Steven Kestner and Michael E. Gibbons were issued in common shares and held in the rabbi trust pursuant to the deferral election made under the Company’s Deferred Compensation Plan. On January |
(2) | The value of the shares granted was calculated using the closing market price of the shares on the grant date multiplied by the number of shares granted and reflects the amount that the Company has expensed in its financial statements in accordance with FASB ASC Topic 718. |
(3) | Reflects |
28 2023 Proxy Statement | Preformed Line Products Company |
Pay versus Performance |
The following table summarizes compensation paid to our Chief Executive Officer, who is also our principal executive officer (“PEO”) as set forth in our Summary Compensation Table, compensation actually paid to our PEO, average compensation paid to our Non-PEO NEOs as set forth in our Summary Compensation Table, and average compensation actually paid to our Non-PEO NEOs, each as calculated in accordance with SEC rules, and certain Company and peer group performance measures for the periods indicated:
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| Value of Initial Fixed $100 Investment Based On: |
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Year | Summary Compensation Table Total for PEO (1) | Compensation Actually Paid to PEO (2) | Average Summary Compensation Table Total for Non-PEO NEOs (3) | Average Compensation Actually Paid to Non- PEO NEOs (2) | Total Shareholder Return (4) | Peer Group Total Shareholder Return (4) | Net Income (in thousands) | Return on Shareholders' Equity (5) | ||||||||||||||||
2022 |
| 4,587,518 |
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| 6,311,917 |
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| 1,311,075 |
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| 1,662,554 |
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| $143.07 |
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| $126.27 |
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| 54,395 |
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| 21.0% |
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2021 |
| 4,760,218 |
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| 4,371,177 |
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| 1,278,358 |
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| 1,206,905 |
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| $110.12 |
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| $143.94 |
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| 35,729 |
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| 16.9% |
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2020 |
| 5,155,604 |
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| 5,382,937 |
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| 1,003,522 |
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| 975,760 |
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| $115.12 |
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| $131.59 |
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| 29,803 |
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| 14.6% |
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(1) | Robert Ruhlman was the PEO for |
(2) | The dollar amounts shown in these columns reflect “compensation actually paid” calculated in accordance with SEC rules. The charts below detail the additions and deductions to Compensation Actually Paid calculation. The dollar amounts do not reflect the actual amount of compensation earned by or paid to the PEO or other NEOs during the applicable years. |
(3) | The non-PEO NEOs are comprised of: 2022 and 2021– J. Ryan Ruhlman, Dennis F. McKenna, William H. Haag III and Andrew S. Klaus; 2020 – David Sunkle, Dennis F. McKenna, William H. Haag III, Michael Weisbarth and Andrew S. Klaus. |
(4) | These columns assume a $100 investment was made in our common shares and in the stock of our Peer Group (defined herein) on the last day of our fiscal year before the earliest reported period and all dividends were reinvested. The “Peer Group” is made up of the companies in the Hemscott Industry Group 627 (Industrial Electrical Equipment), which is the peer group used for the Performance Graph in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
(5) | Return on shareholders’ equity is the financial performance measure, which, in the Company’s assessment, represents for 2022 the most important performance measure used to link compensation actually paid to our PEOs and non-PEO NEOs to the Company’s performance. |
Compensation Actually Paid
The following tables set forth the adjustments made to the total compensation information included in the Summary Compensation Table (“SCT”) for the PEO and non-PEO NEOs, as an average, for purposes of providing the “Compensation Actually Paid to PEO” and “Average Compensation Actually Paid to Non-PEO NEOs” in the table above.
| Preformed Line Products Company |
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PEO – Adjustments for Compensation Actually Paid (CAP) to PEO
PEO Summary Compensation Total (SCT) to CAP Adjustments | 2022 | 2021 | 2020 | ||||||
Deduction for Amounts Reported under the “Stock Awards” Column of the SCT |
| (1,889,622) |
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| (1,920,858) |
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| (2,433,539) |
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Addition of Fair Value of Awards Granted During Year that Remain Unvested as of Year-End (1) |
| 2,660,782 |
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| 1,729,949 |
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| 2,254,961 |
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Addition/Deduction of Change in Fair Value from Prior Year-End to Current Year-End of Awards Granted Prior to Year that were Outstanding and Unvested as of Year-End (1) |
| 1,109,563 |
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| (238,088) |
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| 495,213 |
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Addition/Deduction of Change in Fair Value from Prior Year-End to Vesting Date of Awards Granted Prior to Year that Vested During Year (1) |
| (156,324) |
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| 39,956 |
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| (89,302) |
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Total Adjustments |
| 1,724,399 |
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| (389,041) |
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| 227,333 |
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Average Non-PEO NEOs – Adjustments for CAP to Non-PEO NEOs
Non-PEO NEOs Summary Compensation Total to CAP Adjustments | 2022 | 2021 | 2020 | ||||||
Deduction for Amounts Reported under the “Stock Awards” Column of the SCT |
| (408,213) |
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| (394,581) |
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| (302,531) |
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Addition of Average Fair Value of Awards Granted During Year that Remain Unvested as of Year-End (1) |
| 574,805 |
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| 355,365 |
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| 338,106 |
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Addition/Deduction of Average Change in Fair Value from Prior Year-End to Current Year-End of Awards Granted Prior to Year that were Outstanding and Unvested as of Year-End (1) |
| 185,535 |
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| (33,695) |
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| 54,133 |
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Addition/Deduction of Average Change in Fair Value from Prior Year-End to Vesting Date of Awards Granted Prior to Year that Vested During Year (1) |
| (648) |
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| 1,458 |
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| (2,725) |
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Deduction of Average Fair Value as of Prior Year-End for Prior Year Awards Forfeited During theYear (1) |
| — |
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| (114,745) |
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Total Adjustments |
| 351,479 |
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| (71,453) |
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| (27,762) |
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(1) | The fair value of equity component of the CAP calculation was determined in accordance with Item 402(v) of Regulation S-K. |
30 2023 Proxy Statement | Preformed Line Products Company |
Most Important Performance Measures
The Company views the following financial performance measures as the most important to link Compensation Actually Paid to the PEO and NEOs for fiscal 2022 to Company performance:
• | Sales |
• | Pre-tax income |
• | Return on shareholders’ equity |
Relationship between Compensation Actually Paid and Performance Measures
The charts below show the relationship between the Compensation Actually Paid to the PEO and the Average Compensation Actually Paid to the NEOs other than the PEO in fiscal 2020, 2021 and 2022 (collectively, “NEO Compensation Actually Paid”) to each of (1) total shareholder return (“TSR”), (2) Net Income, (3) Return on shareholders’ equity.
As discussed under “Compensation Discussion & Analysis” above, our compensation program seeks to attract, motivate and retain our NEOs while ensuring the success and growth of the Company by making a significant portion of NEOs’ total compensation variable and dependent on the Company’s financial performance. As shown in the charts below, NEO Compensation Actually Paid is generally aligned with TSR, Net Income, and Return on shareholders’ equity.
Preformed Line Products Company | 2023 Proxy Statement 31 |
32 2023 Proxy Statement | Preformed Line Products Company |
No director serving on the Compensation Committee during any part of 20202022 was at any time either during or before 2020,2022, an officer or employee of the Company or any of its subsidiaries. No interlocking relationship exists between the Board or Compensation Committee and the board of directors or compensation committee of any other company, nor has any interlocking relationship existed during 2020.2022.
It is the policy of the Company that the Audit Committee approves all related party transactions. Additionally, the Company has a Code of Conduct that addresses the Company’s commitment to the honesty, integrity and ethical behavior of the Company’s directors, officers and employees. The Code governs the actions and working relationships of the Company’s directors, officers and employees with current and potential customers, consumers, fellow employees, competitors, government and self-regulatory agencies, investors, the public, the media and anyone else with whom the Company has or may have contact. Each director, officer and employee is instructed to inform the Board when confronted with a situation that may be perceived as a conflict of interest. All related party transactions must be approved by the Audit Committee in advance. The Audit Committee may engage outside parties to assist it in assessing the fairness and reasonableness of related party transactions. Although the policies and procedures for related parties are not in writing, the results of actions taken by the Audit Committee are documented in formal minutes and are reported to the Board.
The following are the Transactionstransactions with the Company’s current officers and directors that have been approved by the Audit Committee and reported to the Board in 2020:2022:
On February 5, 2020, the Company purchased 2,804 shares of the Company from Caroline S. Vaccariello, at a price per share of $58.65, which was calculated from a 30-day average market price in connection with the vesting of equity awards.
• | On September 15, 2022, the Company purchased the following shares of the Company from the following officers at a price per share of $79.52, which was calculated from a 30-day average market price. |
On February 5, 2020, the Company purchased 2,646 shares of the Company from David C. Sunkle, at a price per share of $58.65, which was calculated from a 30-day average market price in connection with the vesting of equity awards.
o | John M. Hofstetter – 2,500 shares |
On February 5, 2020, the Company purchased 19,455 shares of the Company from Robert G. Ruhlman, at a price per share of $58.65, which was calculated from a 30-day average market price in connection with the vesting of equity awards.
o | David C. Sunkle – 3,098 shares |
On February 5, 2020, the Company purchased 3,877 shares of the Company from Dennis F. McKenna, at a price per share of $58.65, which was calculated from a 30-day average market price in connection with the vesting of equity awards.
o | Timothy O’Shaughnessy – 3,000 shares |
On February 5, 2020, the Company purchased 2,649 shares of the Company from John M. Hofstetter, at a price per share of $58.65, which was calculated from a 30-day average market price in connection with the vesting of equity awards.
• | On December 15, 2022, the Company purchased the following shares of the Company from the following director at a price per share of $89.02, which was calculated from a 30-day average market price. |
On February 5, 2020, the Company purchased 3,647 shares of the Company from William H. Haag III, at a price per share of $58.65, which was calculated from a 30-day average market price in connection with the vesting of equity awards.
o | David C. Sunkle – 2,000 shares |
On February 5, 2020, the Company purchased 2,524 shares of the Company from J. Ryan Ruhlman, at a price per share of $58.65, which was calculated from a 30-day average market price in connection with the vesting of equity awards.
On December 15, 2020, the Company purchased 15,000 shares of the Company from Robert G. Ruhlman, at a price per share of $62.71, which was calculated from a 30-day average market price.
On December 15, 2020, the Company purchased 2,000 shares of the Company from David C. Sunkle, at a price per share of $62.71, which was calculated from a 30-day average market price.
J. Ryan Ruhlman is the Vice President, Marketing and Business Development and is a member of the Company’s Board of Directors. He is the son of Robert G. Ruhlman, President and CEO of the Company, and brother to Maegan A. R. Cross, member of the Company’s Board of Directors. Mr. Ryan Ruhlman received $886,251 in reportable compensation for 2020.
• | During 2022, the Company paid approximately $208,000 in legal fees to Baker & Hostetler LLP, of which R. Steven Kestner is a partner and the former Chairman of the firm and chair of its policy committee. |
| Preformed Line Products Company | 2023 Proxy Statement33 |
PROPOSAL TWO: Advisory Vote on Executive Compensation |
The Board recommends that you vote “FOR” this proposal.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd Frank Act”) enables the Company’s shareholders to periodically vote to approve, on an advisory or non-binding basis, the compensation of our Named Executive Officers as disclosed in this Proxy Statement in accordance with SEC rules (the “Say on Pay Vote”). Accordingly, the Board of Directors is asking shareholders to cast an advisory vote indicating their approval of that compensation by voting FOR this proposal.
Executive compensation is an important matter for the Company’s shareholders. As discussed in the section of this proxy statement entitled “Compensation Discussion and Analysis” (“CD&A”), a fundamental principle in the Company’s executive compensation philosophy and practice continues to be pay for performance. The Company believes that the NEOs and other officers and key executives are compensated in a manner consistent with the Company’s strategy, competitive practice, sound corporate governance principles, and shareholder interest and concerns. The Company believes that the Company’s compensation programs are strongly aligned with the long-term interests of its shareholders. You are urged to read the CD&A section of this proxy statement for additional details on the Company’s executive compensation, including the Company’s compensation philosophy and objectives for the compensation of the NEOs.
As an advisory vote, this proposal is non-binding. Although the vote is non-binding, the Board of Directors and the Compensation Committee value the opinions of the shareholders, and will consider the outcome of the vote when making future compensation decisions for the Company’s NEOs.
34 2023 Proxy Statement | Preformed Line Products Company |
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The Board recommends that you vote for “EVERY THREE YEARS” for this proposal.
The Company is required under the Dodd Frank Act to seek a non-binding advisory shareholder vote every six years regarding the frequency (annually, every other year or every three years) at which the Company will ask its shareholders to provide the advisory Say on Pay Vote on executive compensation. The Company believes that holding the Say on Pay Vote every three years is appropriate, given the history of few changes to the executive compensation as well as the composition of the officer group, and the cycle of reviewing compensation policies followed by the Compensation Committee. Therefore, the Company is asking shareholders to vote for every three years for the frequency of the Say on Pay Vote.
Shareholders may vote whether to hold Say on Pay Votes every one, two or three years. Shareholders also have the option to abstain from voting on this matter. We will consider the interval selected by the highest number of votes cast to be the recommendation of our shareholders.
As an advisory vote, this proposal is non-binding. Although the vote is non-binding, the Board of Directors and the Compensation Committee value the opinions of the shareholders, and will consider the outcome of the vote when making future compensation decisions on the frequency of the Say on Pay Vote.
Preformed Line Products Company | 2023 Proxy Statement 35 |
PROPOSAL FOUR: Ratification of the Appointment of Ernst &Young LLP |
The Board recommends that you vote “FOR” this proposal.
The Audit Committee has appointed Ernst & Young LLP (“EY”) as the Company’s independent registered public accounting firm for the year ending December 31, 2021.2023. For 2020,2022, the Company engaged EY to serve as the Company’s independent registered public accounting firm for the year ended December 31, 2020,2022, to audit the annual financial statements and to perform audit-related and tax services. Representatives of EY are expected to be present at the annual meeting of shareholders, will have an opportunity to make a statement if they so desire, and will be available to respond to appropriate questions.
The Board of Directors seeks an indication from shareholders of their approval or disapproval of the Audit Committee’s appointment of EY as the Company’s independent registered public accounting firm for 2021.2023. The submission of this matter for approval by the shareholders is not legally required. The Board believes that submission of this matter presents an opportunity for the shareholders to provide feedback to the Board on an important issue of corporate governance. If the shareholders do not approve the appointment of EY, the appointment will be re-evaluated by the Audit Committee but will not require the Audit Committee to appoint a different accounting firm. The Audit Committee, in its discretion, may select a different independent registered public accounting firm at any time during the year if it determines that such a change would be in the best interest of the Company and its shareholders.
36 2023 Proxy Statement | Preformed Line Products Company |
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Independent Registered Public Accounting Firm
The Audit Committee of the Board of Directors appointed Ernst & Young LLP (EY)(“EY”) as the Company’s independent registered public accounting firm for the year ended December 31, 2020.2022.
Audit Fees
The aggregate audit fees billed for professional services rendered by EY for the years ended December 31, 2022 and 2021 were $1,840,500, for$2,031,100 and $1,825,300, respectively. These fees related to the audit of the Company’s annual financial statements, for the year ended December 31, 2020, the audit of internal controls over financial reporting, as of December 31, 2020, EY’s review of the financial statements included in the Company’s Form 10-Q’s filed with the Securities and Exchange Commission, for the first, second and third quarters of 2020 and statutory audits of various international subsidiaries. The aggregate fees billed for professional services rendered by EY were $1,834,200, for the audit of the Company’s annual financial statements for the year ended December 31, 2019, the audit of internal controls over financial reporting as of December 31, 2019, EY’s review of the financial statements included in the Company’s Form 10-Q’s filed with the Securities and Exchange Commission for the first, second and third quarters of 2019 and statutory audits of various international subsidiaries.
Audit Related Fees
The incrementalThere were no audit related fees billed for professional services rendered by EY for audit-related services for the yearyears ended December 31, 20202022 and 2019 were $1,000 and $1,000, respectively. Fees for both 2020 and 2019 were for R&D expenditures review for a grant audit, and a royalty audit at the Company’s South African subsidiary.2021.
Tax Fees
The incremental feesFees billed for professional services rendered by EY for tax-related services for the yearyears ended December 31, 20202022 and 20192021 were $4,100$20,100 and $4,100,$31,900, respectively. Fees for both years included tax advisory services related to transfer pricing studies at the Company’s Mexican subsidiary.pricing.
All Other Fees
There were no incremental feesFees billed for professional services rendered by EY for all other services for the year ended December 31, 2020. There was an incremental fee of $80,000 billed for professional services rendered byto EY for all other services for the years ended December 31, 2019 related2022 and 2021 were $5,000 and relate to additional risk advisory for an internal audit assessment.subscriptions to EY’s online accounting research tool.
| Preformed Line Products Company | 2023 Proxy Statement37 |
DELINQUENT SECTION 16(A) REPORTS |
Section 16(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) requires the Company’s directors and executive officers, and owners of more than 10% of our common shares, to file with the Securities and Exchange Commission (the “SEC”) initial reports of ownership and reports of changes in ownership of our common shares and other equity securities. Executive officers, directors and owners of more than 10% of the common shares are required by SEC regulations to furnish the Company with copies of all forms they file pursuant to Section 16(a).
Based solely on a review of these reports and written representations from the executive officers and directors, the Company believes that there was compliance with all such filing requirements for the fiscal year ended December 31, 2022, other than the following filings that were inadvertently filed late: (a) Mr. Michael E. Gibbons’ Form 4 reporting his reinvestment of dividends of 21 shares on January 20, 2022 filed on January 26, 2022, (b) Mr. R. Steven Kestner’s Form 4 filed on January 26, 2022 was filed in error; an amended Form 4 was filed the same day, (c) Mr. J. Ryan Ruhlman’s Form 4 reporting his deferral of 4,379 shares to a Rabbi Trust on February 2, 2022 filed on February 15, 2022, (d) Mr. Michael E. Gibbons’ Form 4 reporting his deferral of 260 shares to a Rabbi Trust on September 28, 2022 pursuant to his election under the Company’s Directors Deferred Compensation Plan for shares in lieu of fees, filed on October 3, 2022, (e) Mr. R. Steven Kestner’s Form 4 reporting his deferral of 157 shares to a Rabbi Trust on September 28, 2022, pursuant to his election under the Company’s Directors Deferred Compensation Plan for shares in lieu of fees, filed on October 3, 2022, (f) Mr. Michael E. Gibbons Form 4 reporting his reinvestment of dividends of 19 shares on October 21, 2022 filed on October 27, 2022 and (g) Mr. David C. Sunkle’s Form 4s for the sales of 3,098 and 2,000 shares on September 14, 2022 and December 15, 2022, respectively, filed on March 16, 2023. In addition, a Form 3 for Mr. Bernard L. Karr reporting his appointment on January 2, 2022 to the role of trustee of the Barbara P. Ruhlman Trusts holding 604,213 shares, was filed on January 21, 2022, and a Form 3 for Katherine E. Wensink, who became successor trustee on July 6, 2022 with respect to 1,414,613 shares, was filed on August 2, 2022.
38 2023 Proxy Statement | Preformed Line Products Company |
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Proposals of shareholders intended to be presented, pursuant to Rule 14a-8(e)14a-8 under the Securities Exchange Act, of 1934 (the “Exchange Act”), at the 20212024 annual meeting of shareholders must be received by the Company at 660 Beta Drive, Mayfield Village, Ohio 44143, on or before November 26, 2021,25, 2023, for inclusion in the proxy statement and form of proxy relating to the 20222024 annual meeting of shareholders. In order for a shareholder’s proposal outside of Rule 14a-8(e)14a-8 under the Exchange Act including submissions for director nominees to be considered timely within the meaning of Rule 14a-4(c) of the Exchange Act, such proposal must have been received by the Company at the address listed in the immediately preceding sentenceunder “Communication with Board of Directors” no earlier than January 4, 202210, 2024 and not later than February 3, 20229, 2024 and must comply with all provisions of our Amended and Restated Code of Regulations.
In addition to satisfying the requirements under our Amended and Restated Code of Regulations, to comply with the universal proxy rules, shareholders who intend to solicit proxies in support of director nominees other than the Company’s nominees must provide notice to the Company that sets forth the information required by Rule 14a-19 under the Exchange Act, which notice must be postmarked or transmitted electronically to us at our principal executive offices no later than 60 days prior to the one-year anniversary date of the annual meeting (for the 2024 annual meeting of shareholders, no later than March 10, 2024). Such notice should be delivered to our Corporate Secretary at our principal executive offices and/or sent via email to cvaccariello@preformed.com. If the date of the 2024 annual meeting of shareholders is changed by more than 30 days from such anniversary date, however, then the shareholder must provide notice by the later of 60 days prior to the date of the 2024 annual meeting of shareholders and the 10th day following the date on which public announcement of the date of the 2024 annual meeting of shareholders is first made
Preformed Line Products Company | 2023 Proxy Statement 39 |
Communication with the Board of Directors
The Board of Directors of the Company believes that it is important for shareholders to have a process to send communications to the Board of Directors. Accordingly, shareholders who wish to communicate with the Board of Directors or a particular director may do so by sending a letter to:
Caroline S. Vaccariello | - or - | Michael E. Gibbons |
General Counsel and Corporate Secretary |
| Chairman, Audit Committee |
Preformed Line Products Company |
| c/o Brown Gibbons Lang & Company |
660 Beta Drive |
| 1375 East 9th Street, Suite 2500 |
Mayfield Village, Ohio 44143 |
| Cleveland, OH 44114 |
The mailing envelope must contain a clear notation indicating that the enclosed letter is a “Shareholder-Board Communication” or “Shareholder-Director Communication.” All such letters must identify the author as a shareholder and clearly state whether the intended recipients are all members of the Board of Directors or certain specified individual directors. The Secretary and Mr. Gibbons, as applicable, will make copies of all such letters and circulate them to the appropriate director or directors. The directors are not spokespeople for the Company and shareholders should not expect a response or reply to any communication.
Shareholders Sharing the Same Address
If you and other residents at your mailing address own common shares in street name, your broker or bank may have sent you a notice that your household will receive only one annual report and proxy statement unless contrary to your instructions. This practice is known as “householding,” and is designed to reduce our printing and postage costs. Upon written or oral request, we will promptly deliver a separate set of proxy materials to any beneficial owner at a shared address to which a single copy of any of those documents was delivered. To receive a separate set of proxy materials, you may write or call our Investor Relations Contact at PLP Investor Contacts, 660 Beta Drive, Mayfield Village, Ohio 44143, telephone (440) 461-5200.
Form 10-K
We will mail without charge, upon written request, a copy of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020,2022, including the consolidated financial statements, schedules and list of exhibits, and any particular exhibit specifically requested. Requests should be sent to our Investor Relations Contact at PLP Investor Contacts, 660 Beta Drive. Mayfield Village, Ohio 44143, telephone (440) 461-5200.The Annual Report on Form 10-K is also available at www.preformed.com.www.plp.com.
| By order of the Board of Directors, |
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| Caroline S. Vaccariello, |
Dated: March | Secretary |
40 2023 Proxy Statement | Preformed Line Products Company |
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YOUR VOTE IS IMPORTANT! PLEASE VOTE BY: P.O. BOX 8016, CARY, NC 27512-9903 INTERNET Go To: www.proxypush.com/PLPC Cast your vote online Have your Proxy Card ready Follow the simple instructions to record your vote PHONE Call 1-866-892-1607 Use any touch-tone telephone Have your Proxy Card ready Follow the simple recorded instructions MAIL Mark, sign and date your Proxy Card Fold and return your Proxy Card in the postage-paid envelope provided Preformed Line Products Company Annual Meeting of Shareholders For Shareholders of record as of March 10, 2023 TIME: Tuesday, May 9, 2023 9:30 AM, Local Time PLACE: 660 Beta Drive, Mayfield Village, OH 44143 This proxy is being solicited on behalf of the Board of Directors The undersigned hereby appoints Robert G. Ruhlman, Andrew S. Klaus and Caroline S. Vaccariello (the “Named Proxies”), and each or either of them, attorneysas the true and proxieslawful attorneys of the undersigned, with full power of substitution to attend the annual meetingand revocation, and authorizes them, and each of shareholders of Preformed Line Products Company to be held at 660 Beta Drive, Mayfield Village, Ohio, on Tuesday, May 4, 2021, at 9:30 a.m., local time (or any alternative date, time, method and/or location for the meeting that may be announced at a later date), or any adjournment thereof, andthem, to vote all the numbershares of common sharescapital stock of Preformed Line Products Company which the undersigned would beis entitled to vote at said meeting and any adjournment thereof upon the matters specified and upon such other matters as may be properly brought before the meeting or any adjournment thereof, conferring authority upon such true and lawful attorneys to vote in their discretion on such other matters as may properly come before the meeting and revoking any proxy heretofore given. THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS GIVEN, SHARES WILL BE VOTED IDENTICAL TO THE BOARD OF DIRECTORS RECOMMENDATION. This proxy, when properly executed, will be voted in the manner directed herein. In their discretion, the Named Proxies are authorized to vote upon such other matters that may properly come before the meeting or any adjournment or postponement thereof. If you hold shares in any Employee Stock Purchase Plan, or 401(k) savings plan of the Company (the “Plans”), then this proxy card, when signed and returned, or your telephone or Internet proxy, will constitute voting instructions on matters properly coming before the Annual Meeting and at any adjournments or postponements thereof in accordance with all the powerinstructions given herein to the undersigned would possesstrustee for shares held in any of the Plans. Shares in each of the Plans for which voting instructions are not received by 11:59 P.M., Eastern Time, May 4, 2023, or if personally present as directed onno choice is specified, will be voted by an independent fiduciary. You are encouraged to specify your choice by marking the reverse.appropriate box (SEE REVERSE SIDE) but you need not mark any box if you wish to vote in accordance with the Board of Directors’ recommendation. The Named Proxies cannot vote your shares unless you sign (on the reverse side) and return this card. PLEASE BE SURE TO SIGN AND DATE THIS PROXY CARD AND MARK ON THE REVERSE SIDE
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The Proxies will vote as specified below, or if a choice is not specified, they will vote FOR the nominees listed in Item 1 and FOR the proposal in Item 2.
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INSTRUCTION: To withhold authority to vote for any particular nominee, write that nominee’s name on the line provided below.
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Preformed Line Products Company Annual Meeting of Shareholders Please make your marks like this: X THE BOARD OF DIRECTORS RECOMMENDS A VOTE: FOR ON PROPOSALS 1, 2 AND 4 THE BOARD RECOMMENDS THAT AN ADVISORY VOTE ON THE COMPENSATION FOR NAMED EXECUTIVE OFFICERS BE HELD EVERY 3 YEARS. PROPOSAL YOUR VOTE BOARD OF DIRECTORS RECOMMENDS 1. To elect four directors, each for a term expiring in 2025; FOR WITHHOLD 1.01 Ms. Maegan A. R. Cross FOR 1.02 Mr. Matthew D. Frymier FOR 1.03 Mr. Richard R. Gascoigne FOR 1.04 Mr. Robert G. Ruhlman FOR FOR AGAINST ABSTAIN 2. To hold an advisory vote on the compensation of the Company's Named Executive Officers; FOR 1YR 2YR 3YR ABSTAIN 3. To hold an advisory vote on the frequency of an advisory shareholder vote on the compensation of the Company's Named Executive Officers; 3 YEARS FOR AGAINST ABSTAIN 4. To ratify the appointment of Ernst & Young LLP; FOR 5. To consider any other matters that properly come before the meeting. Check here if you would like to attend the meeting in person. Authorized Signatures - Must be completed for your instructions to be executed. Please sign exactly as your name(s) appears on your account. If held in joint tenancy, all persons should sign. Trustees, administrators, etc., should include title and authority. Corporations should provide full name of corporation and title of authorized officer signing the Proxy/Vote Form. Signature (and Title if applicable) Proposal_Page - VIFL Date Signature (if held jointly) Date
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