Overseas Shipholding Group, Inc. - Ordinary Shares (OSG)
Filed: 27 Apr 22, 9:12am
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.__)
Filed by the Registrant ☒
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 §240.14a-12 |
| OVERSEAS SHIPHOLDING GROUP, INC. |
| (Name of Registrant as Specified In Its Charter) |
| (Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
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| ☒ | No fee required. |
| ☐ | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
| ☐ | Fee paid previously with preliminary materials. |
EXPLANATORY NOTE
To the Stockholders of Overseas Shipholding Group, Inc.:
We recently mailed to our Stockholders the Proxy Statement for our upcoming Annual Meeting of Stockholders to be held on June 1, 2022. The Proxy Statement contained an error: specifically, the table entitled, “OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END,” inadvertently omitted some information for Mr. O’Halloran. A corrected table appears below. We apologize for any inconvenience.
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END
The following table provides information as of December 31, 2021 concerning the holdings of stock options and stock awards by the NEOs. This table includes unexercised and unvested option and stock awards. The market value of the stock awards is based on the market price of OSG’s Class A Common Stock at the close of business on December 31, 2021, which was $1.88 per share.
| Option Awards | Stock Awards | |||||||||||||||||||||||||||||||||
| Name | Grant Date | Number of Securities Underlying Unexercised Options Exercisable (#) | Number of Securities Underlying Unexercised Options Unexercisable (#) | Option Exercise Price | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | 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 ($) | |||||||||||||||||||||||||
| Norton | 3/23/21 | — | — | — | — | 180,084 | (3) | 338,558 | 228,107 | (5) | 428,841 | |||||||||||||||||||||||
| 3/23/20 | — | — | — | — | 174,381 | (3) | 327,836 | 130,785 | (4) | 245,876 | ||||||||||||||||||||||||
| 3/22/19 | — | — | — | — | 52,588 | (3) | 98,865 | — | — | |||||||||||||||||||||||||
| 2/08/19 | 612,745 | (2) | — | $ | 1.82 | 2/08/29 | — | — | — | — | ||||||||||||||||||||||||
| 2/08/18 | 494,118 | (2) | — | $ | 1.70 | 2/08/28 | — | — | — | — | ||||||||||||||||||||||||
| 3/23/17 | 17,637 | (1) | — | $ | 4.04 | 3/23/27 | — | — | — | — | ||||||||||||||||||||||||
| 8/03/16 | 297,818 | (1) | — | $ | 5.57 | 8/03/26 | — | — | — | — | ||||||||||||||||||||||||
| Trueblood | 3/23/21 | — | — | — | — | 54,025 | (3) | 101,567 | 99,045 | (5) | 186,205 | |||||||||||||||||||||||
| 3/23/20 | — | — | — | — | 61,546 | (3) | 115,706 | 46,160 | (4) | 86,781 | ||||||||||||||||||||||||
| 3/22/19 | — | — | — | — | 17,809 | (3) | 33,481 | — | — | |||||||||||||||||||||||||
| O’Halloran | 3/23/21 | — | — | — | — | 47,722 | (3) | 89,717 | 87,490 | (5) | 164,482 | |||||||||||||||||||||||
| 3/23/20 | — | — | — | — | 54,365 | (3) | 102,206 | 40,774 | (4) | 76,655 | ||||||||||||||||||||||||
| 3/22/19 | — | — | — | — | 15,645 | (3) | 29,413 | — | — | |||||||||||||||||||||||||
| 3/23/17 | 18,078 | (1) | — | $ | 4.04 | 3/23/27 | — | — | — | — | ||||||||||||||||||||||||
| Mote | 3/23/21 | — | — | — | — | 47,722 | (3) | 89,717 | 87,490 | (5) | 164,482 | |||||||||||||||||||||||
| 3/23/20 | — | — | — | — | 54,365 | (3) | 102,206 | 40,774 | (4) | 76,655 | ||||||||||||||||||||||||
| 3/22/19 | — | — | — | — | 15,645 | (3) | 29,413 | — | — | |||||||||||||||||||||||||
| 3/23/17 | 18,078 | (1) | — | $ | 4.04 | 3/23/27 | — | — | — | — | ||||||||||||||||||||||||
| (1) | These options to purchase shares of Class A Common Stock became exercisable on the first, second, and third anniversaries of the grant date, respectively. |
| (2) | This represents Mr. Norton’s annual bonus, awarded in fully vested options in accordance with the terms of his prior employment agreement. |
| (3) | One-third of these time-based RSUs vested or will vest on the first, second and third anniversary of the grant date. |
| (4) | These performance-based RSU awards are comprised of two separate grants, both of which become fully vested when the performance periods end on December 31, 2022. The award based upon TSR is 50% of the grant total and is subject to OSG’s three-year TSR performance relative to the performance of the companies that comprise a combination of the Oil & Gas Storage & Transportation and Marine GICS Sub Industries Indexes. The award based upon ROIC is 50% of the grant total and is subject to OSG’s cumulative ROIC relative to OSG’s budgeted ROIC for the performance period. As of year-end 2021, the achievement level for the TSR metric was trending positive and above the 75th percentile and the achievement level for the ROIC metric is trending between threshold and target, as depicted in the following table: |
| 2020 Grant | Share payout if the current trends are | |||||||
| Measurement Date 12/31/2022 | # of shares | realized | ||||||
| Name | PRSU Name | Target | Trend | |||||
| Norton | TSR | 130,785 | 130,785 | 130,785 | ||||
| ROIC | 130,785 | — | ||||||
| Trueblood | TSR | 46,160 | 46,160 | 46,160 | ||||
| ROIC | 46,160 | — | ||||||
| O’Halloran | TSR | 40,774 | 40,774 | 40,774 | ||||
| ROIC | 40,774 | — | ||||||
| Mote | TSR | 40,774 | 40,774 | 40,774 | ||||
| ROIC | 40,774 | — | ||||||
| (5) | These performance-based RSU awards are comprised of three separate grants. The TSR and ROIC awards both cliff vest with performance periods ending on December 31, 2023. The award based upon TSR is subject to OSG’s three-year TSR performance relative to the performance of the companies that comprise a combination of the Oil & Gas Storage & Transportation and Marine GICS Sub Industries Indexes. The award based upon ROIC is subject to OSG’s cumulative ROIC relative to OSG’s budgeted ROIC for the performance period. As of year-end 2021, the achievement level for the TSR metric was trending toward a target payout and the achievement level for the ROIC metric was trending below the threshold. The Special 2021 Grant will vest with a performance period ending on June 30,2022. As of year-end 2021, the achievement level of the Special 2021 Grant was trending at two-thirds of the shares vesting as represented below. |
| 2021 Grant | Share payout if the current trends are | |||||||
| Measurement Date 12/31/2023 | # of shares | realized | ||||||
| Name | PRSU Name | Target | Trend | |||||
| Norton | TSR | 90,042 | 90,042 | |||||
| ROIC | 90,042 | — | 228,107 | |||||
| Special | 207,097 | 138,065 | ||||||
| Trueblood | TSR | 27,012 | 27,012 | |||||
| ROIC | 27,012 | — | 99,045 | |||||
| Special | 108,050 | 72,033 | ||||||
| O’Halloran | TSR | 23,861 | 23,861 | |||||
| ROIC | 23,861 | — | 87,490 | |||||
| Special | 95,444 | 63,629 | ||||||
| Mote | TSR | 23,861 | 23,861 | |||||
| ROIC | 23,861 | — | 87,490 | |||||
| Special | 95,444 | 63,629 | ||||||