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o Preliminary Proxy Statement | ||
o Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | ||
þ Definitive Proxy Statement | ||
o Definitive Additional Materials | ||
o Soliciting Material Pursuant to § 240.14a-12 |
þ | No fee required. |
(1) | Title of each class of securities to which transaction applies: |
(2) | Aggregate number of securities to which transaction applies: |
(3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): |
(4) | Proposed maximum aggregate value of transaction: |
(5) | Total fee paid: |
o | Fee paid previously with preliminary materials. |
o | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
(1) | Amount Previously Paid: |
(2) | Form, Schedule or Registration Statement No.: |
(3) | Filing Party: |
(4) | Date Filed: |
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Sincerely yours, | |
George F. Colony | |
Chairman of the Board | |
and Chief Executive Officer |
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS MAY 10, 2005 | ||||||||
PROXY STATEMENT |
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1. | To elect two Class I directors to serve until the 2008 Annual Meeting of Stockholders; | |
2. | To transact such other business as may properly come before the meeting and any adjournments thereof. |
By Order of the Board of Directors | |
Gail S. Mann, Esq. | |
Secretary |
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• | In person. If you attend the meeting, you may deliver your completed proxy card in person or fill out and return a ballot that will be supplied to you at the meeting. | |
• | By Mail. If you choose to vote by mail, simply mark your proxy card, date and sign it, and return it in the postage-paid envelope provided. |
• | the election of the nominees for Class I directors identified in Proposal One. |
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• | returning to us a newly signed proxy card bearing a later date; | |
• | delivering a written instrument to our Secretary revoking the proxy card; or | |
• | attending the annual meeting and voting in person. |
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Board Meetings and Committees |
Director Candidates |
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Communications from Stockholders |
Compensation Committee Interlocks and Insider Participation |
Director Compensation |
Cash Compensation |
Amended and Restated 1996 Stock Option Plan for Non-Employee Directors |
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(i) each person who we know beneficially owns more than 5% of our common stock; | |
(ii) each of the executive officers named below in the Summary Compensation Table; | |
(iii) each member of our Board of Directors; and | |
(iv) our directors and executive officers as a group. |
�� | |||||||||||||
Common Stock Beneficially Owned(1) | |||||||||||||
Shares Subject to | Percentage of | ||||||||||||
Shares | Exercisable | Outstanding | |||||||||||
Name of Beneficial Owner | Owned | Options(1) | Shares | ||||||||||
George F. Colony, c/o Forrester Research, Inc., | 7,985,876 | 37.4 | % | ||||||||||
400 Technology Square, Cambridge, MA, 02139(2) | |||||||||||||
Royce & Associates, LLC(3) | 2,062,600 | 9.4 | % | ||||||||||
1414 Avenue of the Americas New York, N.Y. 10019 | |||||||||||||
Cramer Rosenthal McGlynn, LLC(4) | 1,170,950 | 5.4 | % | ||||||||||
520 Madison Avenue New York, N.Y. 10022 | |||||||||||||
Neil Bradford | 61,666 | 120,916 | * | ||||||||||
Robert W. Davidson | 62,000 | * | |||||||||||
Brian E. Kardon | 1,310 | 28,500 | * | ||||||||||
Timothy M. Riley | 82,890 | * | |||||||||||
Henk W. Broeders | 49,084 | * | |||||||||||
Robert M. Galford(5) | 2,400 | 55,250 | * | ||||||||||
George R. Hornig | 46,417 | * | |||||||||||
Michael H. Welles | 75,750 | * | |||||||||||
Directors and executive officers as a group (14 persons) | 8,056,273 | 588,142 | 39.4 | % |
(1) | Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and includes voting or investment power with respect to the shares. Shares subject to exercisable options include options that are currently exercisable or exercisable within 60 days of March 16, 2005. |
(2) | Includes (a) 1,580 shares held by Mr. Colony’s wife as to which Mr. Colony disclaims beneficial ownership, and (b) 70,500 shares that are subject to options Mr. Colony granted to one employee. |
(3) | Beneficial ownership as of December 31, 2004, as reported in a Schedule 13G filed with the Securities and Exchange Commission on January 27, 2005. |
(4) | Beneficial ownership as of December 31, 2004, as reported in a Schedule 13G filed with the Securities and Exchange Commission on February 11, 2005. The beneficial owner has sole voting power with respect to 522,500 shares and shared voting power with respect to 596,100 shares, and sole dispositive power with respect to 563,250 shares and shared dispositive power with respect to 607,700 shares. |
(5) | The 2,400 shares are held in trust for Mr. Galford’s children, and Mr. Galford disclaims beneficial ownership of these shares. |
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Long-Term Compensation | |||||||||||||||||||||
Annual Compensation(1) | Securities | ||||||||||||||||||||
Underlying | All Other | ||||||||||||||||||||
Name and Principal Position | Year | Salary | Bonus | Options | Compensation(3) | ||||||||||||||||
George F. Colony | 2004 | $ | 287,500 | $ | 90,000 | — | $ | 4,060 | |||||||||||||
Chairman of the Board and | 2003 | $ | 250,000 | $ | 160,333 | — | $ | 2,600 | |||||||||||||
Chief Executive Officer | 2002 | $ | 241,667 | $ | 82,614 | — | $ | 2,437 | |||||||||||||
Neil Bradford | 2004 | $ | 242,500 | $ | 85,295 | 30,000 | $ | 6,500 | |||||||||||||
President, Americas | 2003 | $ | 208,333 | $ | 111,291 | 58,000 | $ | 2,836 | |||||||||||||
2002 | $ | 200,000 | $ | 40,850 | 25,000 | $ | 1,754 | ||||||||||||||
Robert W. Davidson, President EMEA(2) | 2004 | $ | 246,345 | $ | 84,133 | 30,000 | $ | 35,909 | |||||||||||||
2003 | $ | 224,845 | $ | 93,970 | 27,000 | $ | 12,863 | ||||||||||||||
2002 | $ | 212,389 | $ | 32,553 | 25,000 | $ | 11,945 | ||||||||||||||
Brian E. Kardon | 2004 | $ | 208,500 | $ | 61,222 | 20,000 | $ | 6,500 | |||||||||||||
Chief Marketing and Strategy Officer | 2003 | $ | 202,000 | $ | 112,970 | 41,000 | $ | 6,000 | |||||||||||||
2002 | N/A | N/A | N/A | N/A | |||||||||||||||||
Timothy M. Riley | 2004 | $ | 218,400 | $ | 50,560 | 15,000 | $ | 6,500 | |||||||||||||
Chief People Officer | 2003 | $ | 212,100 | $ | 105,164 | 26,000 | $ | 6,000 | |||||||||||||
2002 | $ | 206,500 | $ | 46,784 | 20,000 | $ | 5,500 |
(1) | No named executive officer received perquisites or other personal benefits in excess of the lesser of $50,000 or 10% of his salary and bonus. |
(2) | Foreign currencies are translated into U.S. dollars based on the average exchange rates during the reported fiscal period. |
(3) | With the exception of Mr. Davidson, includes our contributions to each of the named executive officer’s 401(K) plans. For Mr. Davidson, includes our contributions to pension plans maintained outside of the United States. |
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Potential | ||||||||||||||||||||||||
Realizable Value | ||||||||||||||||||||||||
% of Total | at Annual Rates | |||||||||||||||||||||||
Number of | Options | of Stock Price | ||||||||||||||||||||||
Securities | Granted to | Appreciation for | ||||||||||||||||||||||
Underlying | Employees | Exercise | Option Term(2) | |||||||||||||||||||||
Options | in Fiscal | Price | Expiration | |||||||||||||||||||||
Name | Granted (#) | Year | ($/Share)(1) | Date | 5% ($) | 10% ($) | ||||||||||||||||||
George F. Colony | — | — | — | — | — | — | ||||||||||||||||||
Neil Bradford | 30,000 | 2.5% | $ | 18.42 | 03/30/14 | $ | 347,163 | $ | 879,939 | |||||||||||||||
Robert W. Davidson | 30,000 | 2.5% | $ | 18.42 | 03/30/14 | $ | 347,163 | $ | 879,939 | |||||||||||||||
Brian E. Kardon | 20,000 | 1.6% | $ | 18.42 | 03/30/14 | $ | 231,442 | $ | 586,626 | |||||||||||||||
Timothy M. Riley | 15,000 | 1.2% | $ | 18.42 | 03/30/14 | $ | 173,581 | $ | 439,969 |
(1) | The exercise price of the options granted is equal to the fair market value of our common stock on the date of grant. The option becomes exercisable in four equal installments on the first, second, third, and fourth anniversaries from the date of grant, and becomes exercisable in full upon a change of control. |
(2) | The amounts shown on this table represent hypothetical gains that could be achieved for the respective options if exercised at the end of the option term. These gains are based on assumed rates of stock appreciation of 5% and 10%, compounded annually from the date the respective options were granted to their expiration date. The gains shown are net of the option exercise price, but do not include deductions for taxes or other expenses associated with the exercise. Actual gains, if any, on stock option exercises will depend on the future performance of our common stock, the holder’s continued employment through the option period, and the date on which the options are exercised. |
Fiscal Year-End Option Values | ||||||||||||||||||||||||
Number of Securities | Value of Unexercised | |||||||||||||||||||||||
Underlying Unexercised | In-the-Money Options | |||||||||||||||||||||||
Options at Fiscal | at Fiscal | |||||||||||||||||||||||
Shares | Year-End (#): | Year-End ($)(1): | ||||||||||||||||||||||
Acquired on | Value | |||||||||||||||||||||||
Name | Exercise | Realized(2) | Exercisable | Unexercisable | Exercisable | Unexercisable | ||||||||||||||||||
George F. Colony | 1,446 | $ | 8,553 | 0 | 300 | — | 0 | |||||||||||||||||
Neil Bradford | 0 | 0 | 99,666 | 80,300 | $ | 91,825 | $ | 137,975 | ||||||||||||||||
Robert W. Davidson | 0 | 0 | 43,230 | 63,750 | $ | 64,800 | $ | 68,900 | ||||||||||||||||
Brian E. Kardon | 0 | 0 | 14,750 | 46,250 | $ | 45,000 | $ | 63,000 | ||||||||||||||||
Timothy M. Riley | 0 | 0 | 69,140 | 50,800 | $ | 326,986 | $ | 127,250 |
(1) | Based upon the market price of $17.94 per share, which was the closing price per share of our common stock on the Nasdaq National Market on the last trading day of fiscal 2004, less the option exercise price per share. |
(2) | Represents the difference between the fair market value of the shares on the date of exercise and the exercise price. |
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Number of Securities | ||||||||||||
Number of Securities | Weighted-Average | Remaining Available for | ||||||||||
to Be Issued upon | Exercise Price of | Future Issuance under | ||||||||||
Exercise of | Outstanding | Equity Compensation Plans | ||||||||||
Outstanding Options, | Options, Warrants | (Excluding Securities | ||||||||||
Warrants and Rights | and Rights | Reflected in Column (a)) | ||||||||||
Plan Category | (a) | (b) | (c) | |||||||||
Equity compensation plans approved by shareholders(1) | 5,109,000 | $ | 18.98 | 2,873,891 | (2) | |||||||
Total | 5,109,000 | $ | 18.98 | 2,873,891 | ||||||||
(1) | The approved plans are Forrester’s 1996 Amended and Restated Equity Incentive Plan (the “1996 Plan”), 1996 Amended and Restated Stock Option Plan for Non-Employee Directors, and 1996 Employee Stock Purchase Plan, as amended. |
(2) | Of these shares available for issuance, all those available under the 1996 Plan may be issued as restricted stock. We have never awarded any shares of restricted stock under the 1996 Plan. |
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Robert M. Galford | |
Michael H. Welles |
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AUDIT COMMITTEE OF THE | |
BOARD OF DIRECTORS | |
George R. Hornig, Chairman | |
Henk W. Broeders | |
Michael H. Welles |
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12/31/99 | 12/29/00 | 12/31/01 | 12/31/02 | 12/31/03 | 12/31/04 | |||||||||||||||||||
Forrester Research | $ | 100.00 | $ | 145.37 | $ | 58.48 | $ | 45.21 | $ | 51.54 | $ | 52.09 | ||||||||||||
Nasdaq Stock Market (US Companies) | $ | 100.00 | $ | 60.31 | $ | 47.84 | $ | 33.07 | $ | 49.45 | $ | 53.81 | ||||||||||||
Russell 2000 | $ | 100.00 | $ | 95.80 | $ | 96.78 | $ | 75.90 | $ | 110.33 | $ | 129.09 |
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Fiscal 2004 | Fiscal 2003 | |||||||
Audit Fees | $ | 343,269 | $ | 205,000 | ||||
Audit-Related Fees | 2,500 | 5,000 | ||||||
Tax Fees | 4,274 | — | ||||||
All Other Fees | — | — | ||||||
Total Fees | $ | 350,043 | $ | 210,000 |
Audit Fees |
Audit Related Fees |
Tax Fees |
Audit Committee’s Pre-Approval Policy and Procedures |
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FORRESTER RESEARCH, INC.
C/O EQUISERVE TRUST COMPANY, N.A.
P.O. BOX 8694
EDISON, NJ 08818-8694
DETACH HERE IF YOU ARE RETURNING YOUR PROXY CARD BY MAIL | ZFRR51 |
x | Please mark votes as in this example. | #FRR |
1. | To elect two Class I directors to serve until the 2008 Annual Meeting of Stockholders: | |||
NOMINEES: (01) George F. Colony and (02) Michael H. Welles |
FOR BOTH NOMINEES | o | o | WITHHELD FROM BOTH NOMINEES |
o | ||
For all nominees except as noted above |
2. | To transact such other business as may properly come before the meeting and any adjournments thereof. |
MARK HERE IF YOU PLAN TO ATTEND THE MEETING | o | |
MARK HERE FOR ADDRESS CHANGE AND NOTE AT LEFT | o |
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DETACH HERE | ZFRR52 |
PROXY
FORRESTER RESEARCH, INC.
Proxy Solicited on Behalf of the Board of Directors of
the Company for an Annual Meeting, May 10, 2005
The undersigned appoints George F. Colony and Gail S. Mann, Esq., and each of them, as proxies, each with the power of substitution, and authorizes them to represent and vote all shares of common stock of Forrester Research, Inc. held by the undersigned at the Annual Meeting of Stockholders to be held at the offices of Ropes & Gray LLP, One International Place, Boston, Massachusetts 02110 at 10:00 a.m. on Tuesday, May 10, 2005, or any adjournments thereof, for the following purposes set forth on the reverse side.
This proxy when properly executed will be voted in the manner directed by the undersigned stockholder(s). If no contrary direction is made, the proxy will be voted FOR the election of the directors.
SEE REVERSE
SIDE
CONTINUED AND TO BE SIGNED ON REVERSE SIDE
SEE REVERSE
SIDE