o | Preliminary Proxy Statement | |
o | Confidential, for Use of the Commission Only (as permitted byRule | |
þ | Definitive Proxy Statement | |
o | Definitive Additional Materials | |
o | Soliciting Material Pursuant to |
þ | No fee required | |
o | Fee computed on table below per Exchange ActRules 14a-6(i)(1) and 0-11 |
o | Check box if any part of the fee is offset by Exchange ActRule 0-11(a)(2) and identify the filing for which the offering fee was paid previously. Identify the previous filing by registration statement number, or the form or Schedule and the date of its filing. |
Time/Date: | 2:00 p.m., Tuesday, July | |
Place: | The London NYC, 151 West 54th Street, New York, New York 10019 | |
Items of | 1. Election of | |
2. Ratification of the selection of Deloitte & Touche LLP, an independent registered public accounting firm, as our independent auditors for fiscal year | ||
3. Transaction of such other business as may properly come before the meeting. | ||
Record Date: | Stockholders of record at the close of business on Thursday, May | |
Mailing Date: | These proxy materials are being mailed to stockholders of record as of the record date, on or about June 16, | |
Annual Report: | We have enclosed our | |
Proxy Voting: | Your vote is important. You may vote your shares by completing and returning the enclosed proxy card. Stockholders may also vote by following the internet or telephone voting instructions provided on the proxy card. |
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1. | Election of |
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2. | Ratification of the selection of Deloitte & Touche LLP as the Company’s independent auditors for fiscal year | ||
3. | Transaction of such other business as may properly come before the meeting or any adjournment or postponement. |
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Amount and nature of | ||||||||
Name and Address of Beneficial Owner (1) | beneficial ownership(2) | Percentage of class | ||||||
William L. Ballhaus(6) | 37,125 | * | ||||||
Michael J. Bayer(5) | — | — | ||||||
Natale S. DiGesualdo(5) | 5,000 | * | ||||||
Richard E. Hawley(5) | 3,000 | * | ||||||
Herbert J. Lanese(5) | 10,000 | * | ||||||
Barry R. McCaffrey(5) | — | — | ||||||
Robert B. McKeon(3) | 32,036,734 | (4) | 57.0 | % | ||||
Ramzi M. Musallam(3) | — | — | ||||||
Joseph W. Prueher(5) | 3,000 | * | ||||||
Charles S. Ream(5) | 4,000 | * | ||||||
Mark H. Ronald(5) | — | — | ||||||
Robert B. Rosenkranz(5) | 600 | * | ||||||
Curtis L. Schehr(5) | — | — | ||||||
Peter J. Schoomaker | — | — | ||||||
Leighton W. Smith, Jr.(5) | 1,000 | * | ||||||
Michael J. Thorne(5) | 2,000 | * | ||||||
William G. Tobin(5) | 1,000 | * | ||||||
All Named Executive Officers and Directors as a Group (17 Persons) | 32,103,459 | 57.1 | % |
Amount and nature of | ||||||||
Name and Address of Beneficial Owner(1) | beneficial ownership(2) | Percentage of class | ||||||
William L. Ballhaus | — | — | ||||||
Michael J. Bayer(5) | — | — | ||||||
Richard E. Hawley(5) | 3,000 | * | ||||||
Herbert J. Lanese(5) | 10,000 | * | ||||||
Barry R. McCaffrey(5) | — | — | ||||||
Robert B. McKeon(3) | 32,255,300 | (4) | 56.6 | % | ||||
Ramzi M. Musallam(3) | — | — | ||||||
Joseph W. Prueher(5) | 3,000 | * | ||||||
Charles S. Ream(5) | 4,000 | * | ||||||
Mark H. Ronald(5) | — | — | ||||||
Robert B. Rosenkranz(5) | 600 | * | ||||||
Curtis L. Schehr(5) | — | — | ||||||
Peter J. Schoomaker | — | — | ||||||
Leighton W. Smith, Jr.(5) | 1,000 | * | ||||||
Michael J. Thorne(5) | 2,000 | * | ||||||
William G. Tobin(5) | 1,000 | * | ||||||
Anthony C. Zinni(5) | — | — | ||||||
All Named Executive Officers and Directors as a Group (17 Persons) | 32,279,900 | 56.6 | % |
* | Reflects less than 1% ownership interest. | |
(1) | Except as otherwise indicated, the address for each of the beneficial owners is 3190 Fairview Park Drive, Suite 700, Falls Church, VA 22042. | |
(2) | Except as otherwise indicated, all shares are owned directly. | |
(3) | The address for the beneficial owner is 590 Madison Avenue, | |
(4) | ||
(5) | Each of Messrs. Bayer, DiGesualdo, Hawley, Lanese, McCaffrey, Prueher, Ream, Ronald, Rosenkranz, Schehr, Smith, Thorne |
4
Interests in DIV, and accordingly each has a beneficial interest in less than a 1.0% | ||
(6) | Reflects the vesting of 37,125 restricted stock units on May 19, 2009, which will be settled in stock. |
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Amount of | ||||||||
Beneficial | ||||||||
Name and Address of Beneficial Owner | Ownership(1) | Percent of Class | ||||||
DIV Holding LLC, c/o Veritas Capital Management, 590 Madison Avenue, 41st floor, New York, NY 10022(2)(3)(4) | 31,781,434 | 56.5 | % | |||||
Robert B. McKeon, c/o Veritas Capital Management, 590 Madison Avenue, 41st floor, New York, NY 10022(2)(5) | 32,036,734 | 57.0 | % | |||||
Iridian Asset Management LLC, 276 Post Road West, Westport, CT 06880(6) | 6,705,067 | 11.9 | % |
Amount of | ||||||||
beneficial | ||||||||
Name and Address of Beneficial Owner | ownership(1) | Percent of class | ||||||
DIV Holding LLC,c/o Veritas Capital Management, 590 Madison Avenue, 41st floor, New York, NY 10022(2) | 32,000,000 | 56.1 | % | |||||
Robert B. McKeon,c/o Veritas Capital Management, 590 Madison Avenue, 41st floor, New York, NY 10022(3) | 32,255,300 | 56.6 | % | |||||
Iridian Asset Management LLC, 276 Post Road West. Westport, CT 06880(4) | 6,970,215 | 12.2 | % |
(1) | Ownership is direct except as otherwise indicated. | |
(2) | ||
(3) | DIV has pledged 2,000,000 shares of common stock to Credit Suisse Securities (USA) LLC as security for a loan. | |
(4) | On February 13, 2009, DIV entered into a pre-arranged, non-discretionary stock trading plan (the “Plan”) pursuant to Rule 10b-5 under the Act. Up to 6,000,000 shares held by DIV may be sold under the Plan, subject to the terms and conditions thereof, and 218,566 shares have been sold as of June 1, 2009. | |
(5) | Mr. McKeon also owns 255,300 shares of common stock individually. For purposes of this table, those shares and the shares owned by DIV are aggregated to a single beneficial owner. Mr. McKeon disclaims beneficial ownership of the shares held by DIV, except to the extent of his pecuniary interest in The Veritas Capital Fund II, L.P. and DIV. | |
On February 4, |
5
ownership information contained herein concerning Iridian Asset Management LLC is based solely on public filings made by it. On May 6, 2009, Iridian filed a Form 13F with the SEC, reporting that it and its affiliates owned 6,705,067 shares of our common stock. |
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1. | ||
reviewed and discussed, with management and the independent auditors, the audited consolidated financial statements, including discussions regarding critical accounting policies, other financial and reporting principles and practices appropriate for the Company, the quality of such principles and practices and the reasonableness of significant judgments; | ||
2. | discussed with the independent auditors the items that are required to be discussed under applicable professional auditing standards and regulations, including the quality of the financial statements and the clarity of the related disclosures; and | |
3. | reviewed and considered the written disclosures in an independence letter from Deloitte & Touche LLP, the Company’s independent auditors, as required by |
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• | Alliant Techsystems Inc. | ||
• | Armor Holdings, Inc. | ||
• | CACI International Inc. | ||
• | DRS Technologies, Inc. | ||
• | Hexcel Corporation | ||
• | ITT Corporation | ||
• | L-3 Communications Holdings, Inc. | ||
• | Rockwell Collins, Inc. | ||
• | SAIC, Inc. | ||
• | Teledyne Technologies Incorporated |
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• | base salary; | ||
• | an annual incentive bonus, paid in cash; | ||
• | a long-term incentive compensation plan; | ||
• | long-term equity-based awards from our controlling stockholder; | ||
• | a tax-qualified savings plan with matching company contributions; and | ||
• | perquisites and other personal benefits. |
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Covered NEO | Fiscal Year | Base Salary | Target Bonus Percentage | Target Bonus Amount | ||||||||||||
Mr. Ballhaus(3) | 2009 | $ | 650,000 | 100 | %(1) | $ | 650,000 | (1) | ||||||||
Mr. Lanese | 2009 | $ | 850,000 | 100 | % | $ | 850,000 | |||||||||
2008 | $ | 850,000 | 125 | % | $ | 1,062,500 | ||||||||||
2007 | $ | 800,000 | N/A | (2) | $ | 1,000,000 | (2) | |||||||||
Mr. Rosenkranz | 2009 | $ | 424,000 | 60 | % | $ | 254,400 | |||||||||
2008 | $ | 408,000 | 60 | % | $ | 244,800 | ||||||||||
2007 | $ | 370,000 | 50 | % | $ | 185,000 | ||||||||||
Mr. Schehr(3) | 2009 | $ | 367,000 | 50 | % | $ | 183,500 | |||||||||
2008 | $ | 355,000 | 50 | % | $ | 177,500 | ||||||||||
Mr. Thorne | 2009 | $ | 395,000 | 60 | % | $ | 237,000 | |||||||||
2008 | $ | 380,000 | 60 | % | $ | 228,000 | ||||||||||
2007 | $ | 362,000 | 60 | % | $ | 217,200 | ||||||||||
Mr. DiGesualdo | 2009 | $ | 331,000 | 60 | % | $ | 198,600 | |||||||||
2008 | $ | 320,000 | 60 | % | $ | 192,000 | ||||||||||
2007 | $ | 253,000 | 50 | % | $ | 126,500 |
Covered NEO | Fiscal year | Base salary | Target bonus percentage | Target bonus amount | ||||||||||||
Mr. Lanese | 2008 | $ | 850,000 | 125% | $1,062,500 | |||||||||||
2007 | $ | 800,000 | N/A | (1) | $1,000,000 | |||||||||||
General Zinni | 2008 | $ | 500,000 | N/A | (2) | $500,000 | ||||||||||
Mr. Schehr | 2008 | $ | 355,000 | 50% | $177,500 | |||||||||||
Mr. Rosenkranz | 2008 | $ | 408,000 | 60% | $244,800 | |||||||||||
2007 | $ | 370,000 | 50% | $185,000 | ||||||||||||
Mr. Thorne | 2008 | $ | 380,000 | 60% | $228,000 | |||||||||||
2007 | $ | 362,000 | 60% | $217,200 |
(1) | Mr. Ballhaus’ target bonus for the fiscal year 2009 was set at 100% of his base salary with the potential to earn a higher payout if Company results exceed performance targets. Under the terms of his employment agreement, his minimum bonus for fiscal year 2009 was set at $625,000. | |
(2) | Mr. Lanese’s bonus for FY 2007 was a fixed amount of $1,000,000. | |
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Performance | Weighting of | Actual Results | ||||||||||||||||||||
Fiscal Year | Performance | Targets for Fiscal | Performance | (for the Fiscal | ||||||||||||||||||
Ended | Metric | Year | Metrics | Year) | ||||||||||||||||||
April 3, 2009 | EBITDA(1) | $214 million | 50% | $221 million | ||||||||||||||||||
Revenue | $2.950 billion | 25% | $3.101 billion | |||||||||||||||||||
DSO(2) | 75 days | 25% | ||||||||||||||||||||
72 days | ||||||||||||||||||||||
March 28, 2008 | EBITDA | (1) | $205 million | 50% | $175 million | |||||||||||||||||
Revenue | $2.400 billion | 25% | $2.140 billion | |||||||||||||||||||
DSO | (2) | 74 days | 25% | 79 days | ||||||||||||||||||
March 30, 2007 | (1) | $170 million | 75% | $174 million | ||||||||||||||||||
DSO | (2) | 77 days | 25% | 75 days |
(1) | In fiscal year 2009, we adjusted EBITDA to exclude unusual, non-recurring items such as unrecoverable severance and IPO bonuses. | |
(2) | DSO utilized for performance metric purposes is calculated as the average monthly DSO for the fiscal year 2009 and can differ from DSO calculated for financial reporting purposes, as disclosed in our Annual Report on Form 10-K filed with the SEC on June 11, 2009. |
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Non-Equity | |||||||||||||||||||||||||||||||||||
Incentive | All | ||||||||||||||||||||||||||||||||||
Stock | Plan | Other | |||||||||||||||||||||||||||||||||
(Equity) | Compen- | Compen- | |||||||||||||||||||||||||||||||||
Name and Principal | Fiscal | Salary | Bonus | Awards | sation | sation | Total | ||||||||||||||||||||||||||||
Position | Year | ($) | ($)(3) | ($)(4) | ($)(5) | ($)(7) | ($) | ||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (g) | (i) | (j) | ||||||||||||||||||||||||||||
Herbert J. Lanese | 2008 | 834,616 | — | 8,309 | 327,300 | 172,706 | 1,342,932 | ||||||||||||||||||||||||||||
President & Chief | 2007 | 553,846 | — | 851,509 | 1,000,000 | 107,636 | 2,512,991 | ||||||||||||||||||||||||||||
Executive Officer(1) | |||||||||||||||||||||||||||||||||||
Anthony C. Zinni | 2008 | 322,116 | 24,038 | 36,428 | 500,000 | 64,200 | 946,782 | ||||||||||||||||||||||||||||
Executive Vice President(2)(6) | |||||||||||||||||||||||||||||||||||
Robert B. Rosenkranz | 2008 | 396,554 | — | 407,034 | 75,400 | 49,545 | 928,533 | ||||||||||||||||||||||||||||
President, Government | 2007 | 358,746 | 25,000 | 50,447 | 260,000 | 55,323 | 749,516 | ||||||||||||||||||||||||||||
Services segment | |||||||||||||||||||||||||||||||||||
Curtis L. Schehr | 2008 | 350,385 | — | 317,528 | 54,700 | 20,302 | 742,915 | ||||||||||||||||||||||||||||
Senior Vice President, General Counsel & Secretary(6) | |||||||||||||||||||||||||||||||||||
Michael J. Thorne | 2008 | 374,462 | — | 151,343 | 70,200 | 39,699 | 635,703 | ||||||||||||||||||||||||||||
Senior Vice President, | 2007 | 349,942 | 125,000 | 151,342 | 221,340 | 51,474 | 899,098 | ||||||||||||||||||||||||||||
Chief Financial Officer & Treasurer | |||||||||||||||||||||||||||||||||||
Non-Equity | ||||||||||||||||||||||||||||
Stock | Incentive | |||||||||||||||||||||||||||
(Equity) | Plan | All Other | ||||||||||||||||||||||||||
Name and Principal | Fiscal | Salary | Bonus | Awards | Compensation | Compensation | Total | |||||||||||||||||||||
Position | Year | ($) | ($)(1) | ($)(2) | ($)(3) | ($)(4) | ($) | |||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (g) | (i) | (j) | |||||||||||||||||||||
William L. Ballhaus(5) | 2009 | 547,500 | 350,000 | — | 816,400 | 80,937 | 1,794,837 | |||||||||||||||||||||
President & Chief Executive | 2008 | — | — | — | — | — | — | |||||||||||||||||||||
Officer | 2007 | — | ��� | — | — | — | — | |||||||||||||||||||||
Herbert J. Lanese(6) | 2009 | 233,260 | — | 528,269 | — | 4,131,835 | 4,893,364 | |||||||||||||||||||||
Former President & Chief | 2008 | 834,616 | — | 8,309 | 327,300 | 172,706 | 1,342,931 | |||||||||||||||||||||
Executive Officer | 2007 | 553,846 | — | 851,509 | 1,000,000 | 107,636 | 2,512,991 | |||||||||||||||||||||
Robert B. Rosenkranz | 2009 | 419,299 | — | 407,034 | 365,340 | 72,853 | 1,264,526 | |||||||||||||||||||||
Executive Vice President & | 2008 | 396,554 | — | 407,034 | 75,400 | 49,545 | 928,533 | |||||||||||||||||||||
Chief of Staff | 2007 | 358,746 | 25,000 | 50,447 | 260,000 | 55,323 | 749,516 | |||||||||||||||||||||
Curtis L. Schehr(5) | 2009 | 363,602 | — | 317,528 | 230,743 | 9,757 | 921,630 | |||||||||||||||||||||
Senior Vice President, Chief | 2008 | 350,385 | — | 317,528 | 54,700 | 20,302 | 742,915 | |||||||||||||||||||||
Compliance Officer and Executive Counsel | ||||||||||||||||||||||||||||
Michael J. Thorne | 2009 | 390,523 | — | 151,343 | 297,823 | 43,380 | 883,069 | |||||||||||||||||||||
Senior Vice President, Chief | 2008 | 374,462 | — | 151,343 | 70,200 | 39,699 | 635,704 | |||||||||||||||||||||
Financial Officer & Treasurer | 2007 | 349,942 | 125,000 | 151,342 | 221,340 | 51,474 | 899,098 | |||||||||||||||||||||
Natale S. DiGesualdo | 2009 | 327,754 | — | 670,446 | 298,080 | 70,712 | 1,366,992 | |||||||||||||||||||||
President, Maintenance & | 2008 | 317,169 | — | 284,776 | 63,600 | 61,046 | 726,591 | |||||||||||||||||||||
Technical Services | 2007 | 265,554 | — | 50,448 | 133,331 | 46,820 | 496,153 |
(1) | ||
The amounts reported in column (d) for fiscal year | ||
(2) | The amounts reported in column (e) reflect vesting from equity-based awards which comprise RSUs | |
(3) | The amounts reported in column (g) represent cash bonuses that were earned in fiscal years | |
(4) | ||
The amount of each component of All Other Compensation reported in column (i) for each NEO is set forth in the “All Other Compensation” table below. | ||
(5) | Information is not included for Mr. Schehr for the period prior to the year he became an NEO. Information is not included for Mr. Ballhaus for the period prior to his employment with the Company. | |
(6) | Mr. Lanese’s compensation for fiscal years 2007, 2008 and 2009 excludes his compensation as a director for the periods that he was not an executive officer. |
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401(k) | Paid | Cost of | Total | 401(k) | Cost of | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Matching | Relocation | Car | Time | Insurance | Other | Matching | Relocation | Car | Paid Time | Insurance | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal | Contributions | Allowance | Allowance | Off | Policies | Compensation | Contributions | Allowance | Severance | Allowance | Off | Policies | Compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Year | ($) | ($) | ($) | ($)(1) | ($)(2) | ($) | Fiscal Year | ($) | ($) | ($) | ($) | ($)(1) | ($)(2) | ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Ballhaus(3) | 2009 | 8,500 | — | — | — | — | 72,437 | 80,937 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Lanese | 2008 | 10,000 | 45,314 | — | — | 117,392 | 172,706 | 2009 | 5,473 | — | 4,028,992 | — | 92,683 | 4,687 | 4,131,835 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 10,461 | — | — | — | 97,175 | 107,636 | 2008 | 10,000 | 45,314 | — | — | — | 117,392 | 172,706 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gen. Zinni | 2008 | 7,452 | — | — | — | 56,748 | 64,200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 10,461 | — | — | — | — | 97,175 | 107,636 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Rosenkranz | 2008 | 10,000 | — | — | — | 39,545 | 49,545 | 2009 | 7,970 | — | — | — | 20,576 | 44,307 | 72,853 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 9,755 | 9,554 | — | 36,014 | 55,323 | 2008 | 10,000 | — | — | — | — | 39,545 | 49,545 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 9,755 | — | — | 9,554 | — | 36,014 | 55,323 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Schehr | 2008 | 10,000 | — | — | — | 10,302 | 20,302 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Schehr(3) | 2009 | 9,757 | — | — | — | — | — | 9,757 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 10,000 | — | — | — | — | 10,302 | 20,302 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Thorne | 2008 | 10,000 | — | — | 15,315 | 14,384 | 39,699 | 2009 | 9,892 | — | — | — | 17,538 | 15,950 | 43,380 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 11,126 | 10,615 | 26,934 | 2,799 | 51,474 | 2008 | 10,000 | — | — | — | 15,315 | 14,384 | 39,699 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 11,126 | — | — | 10,615 | 26,934 | 2,799 | 51,474 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. DiGesualdo | 2009 | 10,430 | — | — | — | 42,728 | 17,554 | 70,712 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 9,986 | — | — | — | 33,786 | 17,274 | 61,046 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 10,966 | — | — | 3,962 | 24,564 | 7,328 | 46,820 |
(1) | Represents compensation paid out during the fiscal year in lieu of unused vacation and personal time. | |
(2) | Represents | |
(3) | Information is not included for Mr. Schehr for the period prior to the year he became an NEO. Information is not included for Mr. Ballhaus for the period prior to his employment with the Company. |
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All other | All other | |||||||||||||||||||||||||||||||||||||||||||
stock | option | |||||||||||||||||||||||||||||||||||||||||||
awards: | awards: | Exercise | Grant date | |||||||||||||||||||||||||||||||||||||||||
Estimated future payouts under | number of | number of | or base | fair value | ||||||||||||||||||||||||||||||||||||||||
non-equity incentive plan | Estimated payouts under | shares of | securities | price of | of stock | |||||||||||||||||||||||||||||||||||||||
awards(1) | equity incentive plan awards | stock or | underlying | option | and option | |||||||||||||||||||||||||||||||||||||||
Threshold | Target | Maximum | Threshold | Target | Maximum | units | options | awards | awards | |||||||||||||||||||||||||||||||||||
Name | Grant date | ($) | ($) | ($) | (#) | (#) | (#) | (#) | (#) | ($/Sh) | ($) | |||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (k) | (l) | |||||||||||||||||||||||||||||||||
Mr. Ballhaus | 09/03/08 | 50,000 | 50,000 | 50,000 | 50,000 | — | — | — | ||||||||||||||||||||||||||||||||||||
05/19/08 | 625,000 | 650,000 | 1,300,000 | |||||||||||||||||||||||||||||||||||||||||
Mr. Lanese | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Mr. Rosenkranz | 6/21/08 | 78,985 | 254,400 | 508,800 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Mr. Schehr | 6/21/08 | 56,972 | 183,500 | 367,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Mr. Thorne | 6/21/08 | 73,583 | 237,000 | 474,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Mr. DiGesualdo | 6/21/08 | 61,660 | 198,600 | 397,200 | — | — | — | — | — | — | — |
All other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
All other | option awards: | Grant date | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated future payouts under | Estimated future payouts under | stock awards: | number of | Exercise or | fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
non-equity incentive plan awards | equity incentive plan awards | number of | securities | base price | of stock | ||||||||||||||||||||||||||||||||||||||||||||||||||
shares of | underlying | of option | and option | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant | Threshold | Target | Maximum | Threshold | Target | Maximum | stock or units | options | awards | awards | |||||||||||||||||||||||||||||||||||||||||||||
Name | date | ($)(1) | ($)(1) | ($)(1) | ($)(3) | ($)(3) | ($)(3) | (#) | (#) | ($/Sh) | ($) | ||||||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (k) | (l) | ||||||||||||||||||||||||||||||||||||||||||||
Mr. Lanese | 6/28/07 | 329,880 | 1,062,500 | 2,125,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Gen. Zinni(2) | 12/3/07 | — | — | — | 317,850 | 317,850 | 317,850 | 15,000 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
7/16/07 | 500,000 | 500,000 | 1,000,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Mr. Rosenkranz | 6/28/07 | 76,004 | 244,800 | 489,600 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Mr. Schehr | 6/28/07 | 55,109 | 177,500 | 355,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
�� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Thorne | 6/28/07 | 70,788 | 228,000 | 456,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
(1) | Threshold, target and maximum amounts are calculated based on the weighted | |
(2) | ||
Amount represents grant-date fair value of the RSU awards. Our RSUs are accounted for as liability awards in accordance with SFAS 123(R) and are subsequently re-measured at each reporting period. |
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Option awards | Stock awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity incentive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | plan awards: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
incentive | Market | number of | Equity incentive | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
plan awards: | Number of | value of | unearned shares, | plan awards: market | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | number of | shares or | shares or | units or | or payout value of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
securities | securities | securities | units of | units of | other | unearned shares, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
underlying | underlying | underlying | Option | Option | stock that | stock that | rights that | units or other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
unexercised | unexercised | unexercised | exercise | expiration | have not | have not | have | rights that have | Option awards | Stock awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | options | options | unearned options | price | date | vested(1) | vested(1) | not vested | not vested | 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(1) (#) | Market value of shares or units of stock that have not vested(1) (#) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) | Equity incentive plan awards: market or payout value of unearned shares, units or other rights that have not vested ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(#) | (#) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
exercisable | unexercisable | (#) | ($) | (#) | (#) | (#) | ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Ballhaus(2) | — | — | — | — | — | 50,000 | 675,000 | 50,000 | 675,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Lanese | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gen. Zinni(2) | — | — | — | — | — | 15,000 | 248,400 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Rosenkranz | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Schehr | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Thorne | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. DiGesualdo | — | — | — | — | — | — | — | — | — |
(1) | As of | |
(2) |
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Book | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | Book | Value of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | Interests | Value of | Unvested | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | Interests | Class B | That Have | Class B | Class B | |||||||||||||||||||||||||||||||||||||||||||||||||
Interests | Vested | Interests | Not Vested | Interests That | Interests | Class B Interests | Book Value of | Book Value of | ||||||||||||||||||||||||||||||||||||||||||||||
Vested as of | During | Vested as of | as of | Vested in | as of | Class B Interests | Class B Interests | Cumulative Class B | That Have Not | Vested Class B | Unvested Class B | |||||||||||||||||||||||||||||||||||||||||||
March 30, | Fiscal | March 28, | March 28, | Fiscal | March 28, | Vested as of | Vested During | Interests Vested as | Vested as of | Interests as of | Interests as of | |||||||||||||||||||||||||||||||||||||||||||
2007 | Year 2008 | 2008 | 2008 | Year 2008 | 2008 | March 28, 2008 | Fiscal Year 2009 | of April 3, 2009 | April 3, 2009 | April 3, 2009 | April 3, 2009 | |||||||||||||||||||||||||||||||||||||||||||
Name | (%)(2) | (%)(2) | (%)(2) | (%)(3) | ($)(4) | ($)(4) | (%)(1) | (%)(1) | (%)(1) | (%)(2) | ($)(3) | ($)(3) | ||||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (b) | (c) | (d) | (e) | (f) | (g) | ||||||||||||||||||||||||||||||||||||||||||
Mr. Ballhaus(4) | 0.0000 | 0.0000 | 0.0000 | 0.0000 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Lanese | 0.4070 | 0.0070 | 0.4140 | 1.2280 | 8,309 | 2,554,527 | 0.4140 | 0.1270 | 0.5410 | 0.0940 | 1,388,087 | 363,258 | ||||||||||||||||||||||||||||||||||||||||||
Gen. Zinni(1) | 0.0140 | 0.0070 | 0.0210 | 0.0140 | 36,428 | 72,856 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Rosenkranz | 0.1725 | 0.1300 | 0.3025 | 0.3475 | 864,515 | 1,170,654 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Schehr | 0.0000 | 0.1000 | 0.1000 | 0.3000 | 317,528 | 952,584 | 0.1000 | 0.1000 | 0.2000 | 0.2000 | 635,055 | 635,056 | ||||||||||||||||||||||||||||||||||||||||||
Mr. Rosenkranz | 0.0425 | 0.1300 | 0.1725 | 0.4775 | 407,034 | 1,577,688 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Thorne | 0.2550 | 0.1275 | 0.3825 | 0.2550 | 151,343 | 302,685 | 0.3825 | 0.1275 | 0.5100 | 0.1275 | 605,370 | 151,343 | ||||||||||||||||||||||||||||||||||||||||||
Mr. DiGesualdo(5) | 0.1850 | 0.1000 | 0.2850 | 0.0000 | 670,446 | — |
(1) | ||
Columns (b), (c) and (d) | ||
(2) | Percentages in column (e) reflect unvested Class B Interests, as described above under the heading “Other Equity-Based Awards”. Class B Interests vest ratably over the five-year period following the grant except in the case of Mr. | |
(3) | Columns (f) and (g) reflect the book value of the Class B Interests that were vested | |
(4) | No Class B Interests were granted to Mr. Ballhaus as he received RSU awards for his equity-based compensation. | |
(5) | Due to his announced intent to retire in June 2008, a 100% forfeiture estimate was assumed for Mr. DiGesualdo as of April 3, 2009. |
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Covered NEO | Base salary | Target bonus | ||||||
Mr. Ballhaus(1) | $ | 650,000 | $ | 650,000 | (1) | |||
Mr. Lanese(2) | 850,000 | 850,000 | ||||||
Mr. Rosenkranz | 424,000 | 254,400 | ||||||
Mr. Schehr | 367,000 | 183,500 | ||||||
Mr. Thorne | 395,000 | 237,000 | ||||||
Mr. DiGesualdo | 331,000 | 198,600 |
Covered NEO | Base salary | Target bonus | ||||||
Mr. Lanese(1) | $ | 850,000 | $ | 1,062,500 | ||||
Gen. Zinni | $ | 500,000 | $ | 500,000 | ||||
Mr. Rosenkranz | $ | 408,000 | $ | 244,000 | ||||
Mr. Schehr | $ | 355,000 | $ | 177,500 | ||||
Mr. Thorne | $ | 380,000 | $ | 228,000 |
(1) | Mr. | |
(2) | Mr. Lanese served as our President and Chief Executive Officer from 2006 to |
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reimbursement for the cost of continued medical coverage for the same portion of such NEO’s COBRA health insurance premium that we paid during such NEO’s employment, until the earlier of either the last day |
26
a payment equal to the pro rated portion of such NEO’s incentive compensation that would be payable | ||
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27
28
28
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Fees | ||||||||||||||||||||||||||||||||||||
Earned or | Stock | All Other | ||||||||||||||||||||||||||||||||||
Paid in | (Equity) | Compen- | Fees Earned or Paid | Stock (Equity) | All Other | |||||||||||||||||||||||||||||||
Cash | Awards | sation | Total | in Cash | Awards | Compensation | Total | |||||||||||||||||||||||||||||
Name | ($) | ($)(1) | ($) | ($) | ($) | ($) (1) | ($) | ($) | ||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | ||||||||||||||||||||||||||||||||
William L. Ballhaus(2) | — | — | — | — | ||||||||||||||||||||||||||||||||
Michael J. Bayer | 64,000 | 22,227 | — | 86,227 | 92,000 | 22,227 | — | 114,227 | ||||||||||||||||||||||||||||
Richard E. Hawley | 36,000 | 8,309 | — | 44,309 | 54,000 | 8,309 | — | 62,309 | ||||||||||||||||||||||||||||
Herbert J. Lanese(2) | — | 8,309 | — | 8,309 | ||||||||||||||||||||||||||||||||
Barry R. McCaffrey | 36,000 | 8,309 | — | 44,309 | ||||||||||||||||||||||||||||||||
Robert B. McKeon(3) | — | — | — | — | ||||||||||||||||||||||||||||||||
Ramzi M. Musallam(3) | — | — | — | — | ||||||||||||||||||||||||||||||||
Herbert J. Lanese(3) | 40,000 | — | — | 40,000 | ||||||||||||||||||||||||||||||||
Barry R. McCaffrey(4) | 54,000 | 8,309 | 120,000 | 182,309 | ||||||||||||||||||||||||||||||||
Robert B. McKeon(5) | — | — | — | — | ||||||||||||||||||||||||||||||||
Ramzi M. Musallam(5) | — | — | — | — | ||||||||||||||||||||||||||||||||
Joseph W. Prueher | 68,000 | 8,309 | — | 76,309 | 83,000 | 8,309 | — | 91,309 | ||||||||||||||||||||||||||||
Charles S. Ream | 75,000 | 8,309 | — | 83,309 | 112,000 | 8,309 | — | 120,309 | ||||||||||||||||||||||||||||
Mark H. Ronald | 50,000 | 28,527 | — | 78,527 | 74,000 | 28,527 | — | 102,527 | ||||||||||||||||||||||||||||
Peter J. Schoomaker | 20,000 | — | — | 20,000 | ||||||||||||||||||||||||||||||||
Peter J. Schoomaker(6) | 60,000 | — | 20,750 | 80,750 | ||||||||||||||||||||||||||||||||
Leighton W. Smith Jr. | 48,500 | 8,309 | — | 56,809 | 74,500 | 8,309 | — | 82,809 | ||||||||||||||||||||||||||||
William G. Tobin | 50,000 | 8,309 | — | 58,309 | 75,000 | 8,309 | — | 83,309 | ||||||||||||||||||||||||||||
Anthony C. Zinni(4) | 12,000 | — | 75,000 | 87,000 | ||||||||||||||||||||||||||||||||
(1) | The amounts reported in this column include RSU awards and Class B Interests and reflect the grant-date fair value of equity-based awards that vested in fiscal year |
30
subsequently re-measured at each reporting period. Assumptions used in the calculation of these awards are discussed in Note 11 to our | ||
(2) | Mr. | |
(3) | Mr. Lanese’s fees and equity awards only reflect the fees and awards relating to his services as a director following the end of his services as an employee on May 19, 2008. | |
(4) | Gen. McCaffrey serves as Chairman of the Board of Managers of Global Linguist Solutions LLC, a subsidiary of the Company. His fees for such services during the fiscal year are reflected in column (d). | |
(5) | Messrs. McKeon and Musallam are principals of Veritas Capital Management II, L.P. which owns the controlling interest of DIV, which in turn owns a majority of the Company’s outstanding shares of common stock. As Veritas executives, they are not paid by the Company for their services as directors or members of its committees. The Company paid a total of $300,000 in management fees and | |
(6) |
30
31
Deloitte & Touche LLP | 2009 | 2008 | ||||||
Audit Fees(1) | $ | 2,472,940 | $ | 2,428,411 | ||||
Audit-Related Fees(2) | $ | 302,610 | $ | 159,300 | ||||
Tax Fees(3) | $ | 43,619 | $ | 16,926 | ||||
All Other Fees | $ | — | $ | — | ||||
Deloitte & Touche LLP Fees | 2008 | 2007 | ||||||
Audit Fees(1) | $ | 2,499,111 | $ | 1,686,514 | ||||
Audit-Related Fees(2) | $ | 88,600 | $ | 0 | ||||
Tax Fees(3) | $ | 16,926 | $ | 50,000 | ||||
All Other Fees | $ | 0 | $ | 0 | ||||
(1) | Audit fees principally include fees for services related to the annual audit of the consolidated financial statements, | |
(2) | Audit-related fees principally include those for services related to employee benefit plans and | |
(3) | Tax fees |
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Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Proxy Statement and Annual Report are available at http://ir.dyn-intl.com/financials.cfm. M15564-P81257THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned stockholder of DynCorp International Inc. (the “Company”) hereby acknowledges receipt of the Notice of Annual Meeting of Stockholders and Proxy Statement, each dated June The record date is the close of business as of Thursday, May |