Table of Contents
SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES EXCHANGE
ACT OF 1934 (AMENDMENT NO. __ )
Filed by the Registrant | þ | |||||
Filed by a Party other than the Registrant | o | |||||
Check the appropriate box: | ||||||
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 Under Rule 14a-12 |
THOMAS GROUP, INC.
(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 the appropriate box):
þ No fee required.
o Fee computed on table below per Exchange Act Rules 14a-6(i)(l) and 0-11.
(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:
Table of Contents
(1) To elect eight persons to serve as directors until the Company’s Year 2006 Annual Meeting of Stockholders or until their successors are duly elected and qualified; and | |
(2) To transact such other business as may properly come before the Annual Meeting or any adjournments or postponements thereof. |
By Order of the Board of Directors, | |
JAMES T. TAYLOR | |
Chief Executive Officer |
Table of Contents
• | FORthe eight nominees to the Company’s board of directors named in this proxy statement; and | |
• | at the discretion of the persons named in the proxy on any other business that may properly come before the Annual Meeting. |
Table of Contents
Name | Age | Positions and Offices With the Company | Director Since | |||||||
John T. Chain, Jr. | 70 | Chairman of the Board | 1995 | |||||||
Edward P. Evans | 63 | Director | 2005 | |||||||
Richard A. Freytag | 71 | Director | 1997 | |||||||
Dorsey R. Gardner | 62 | Nominee for Director* | ||||||||
Charles M. Harper | 77 | Director | 2003 | |||||||
Jimmy C. Houlditch | 69 | Vice President, President North America Region, Director | 2004 | |||||||
David B. Mathis | 66 | Director | 1998 | |||||||
James T. Taylor | 58 | President, CEO, CFO, Secretary, Treasurer, Director | 2004 |
* | Mr. Gardner is a nominee for Director standing for election at the annual meeting on June 29, 2005. |
2
Table of Contents
3
Table of Contents
4
Table of Contents
5
Table of Contents
Name and Address of Beneficial Owner | Shares Owned(1) | Percent of Class | ||||||
John T. Chain, Jr. | 3,253,531 | (2) | 30.5 | |||||
Edward P. Evans | 3,903,307 | (3) | 36.6 | |||||
Richard A. Freytag | 33,956 | (4) | * | |||||
Dorsey R. Gardner | 477,020 | 4.5 | ||||||
David B. Mathis | 18,781 | (5) | * | |||||
Charles M. Harper | 30,000 | * | ||||||
James T. Taylor | 233,149 | (6) | 2.2 | |||||
Jimmy C. Houlditch | 38,642 | (7) | * | |||||
All officers and directors as a group (8 persons) | 7,988,386 | (8) | 75.0 |
* | Indicates less than one percent (1%). |
(1) | Except as otherwise indicated, the persons named in the table possess sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them. Beneficial ownership as reported in the above table has been determined according to Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The amounts shown in the table include shares of common stock issuable upon exercise of outstanding options exercisable within 60 days of April 15, 2005. Except as otherwise noted, the address of the named individuals is 5221 N. O’Connor Boulevard, Suite 500, Irving, Texas 75039-3714. |
(2) | Includes 11,932 shares of common stock issuable upon exercise of outstanding options exercisable within 60 days of April 15, 2005. |
(3) | Includes 369,750 shares beneficially owned indirectly by Mr. Evans. |
(4) | Includes 7,077 shares of common stock issuable upon exercise of outstanding options exercisable within 60 days of April 15, 2005. |
(5) | Includes 1,902 shares of common stock issuable upon exercise of outstanding options exercisable within 60 days of April 15, 2005. |
(6) | Includes 230,649 shares of common stock issuable upon exercise of outstanding options exercisable within 60 days of April 15, 2005. |
6
Table of Contents
(7) | Includes 31,642 shares of common stock issuable upon exercise of outstanding options exercisable within 60 days of April 15, 2005. |
(8) | The amount shown includes a total of 283,202 shares of common stock issuable upon exercise of outstanding options exercisable within 60 days of April 15, 2005. |
Annual Compensation | Long-Term Compensation | ||||||||||||||||||||||||
Awards | |||||||||||||||||||||||||
Other Annual | Securities | All Other | |||||||||||||||||||||||
Salary | Bonus | Compensation | Underlying | Compensation | |||||||||||||||||||||
Name & Principal Position | Year | ($) | ($) | ($)(1) | Options/SARS | ($)(2) | |||||||||||||||||||
James T. Taylor(3) | 2004 | 400,000 | 468,235 | 25,800 | — | 9,654 | |||||||||||||||||||
Chief Executive Officer, | 2003 | 293,750 | — | 173,732 | 175,000 | 8,677 | |||||||||||||||||||
Chief Financial Officer, | 2002 | 182,813 | 50,000 | 7,200 | 75,000 | — | |||||||||||||||||||
President, Treasurer, Secretary | |||||||||||||||||||||||||
John R. Hamann(4) | 2004 | 13,846 | — | 50,700 | — | 436,154 | |||||||||||||||||||
Former, Chief Executive Officer | 2003 | 455,208 | — | 303,684 | 400,000 | 3,147 | |||||||||||||||||||
2002 | 318,750 | 50,000 | 15,400 | 100,000 | 2,280 | ||||||||||||||||||||
Jimmy C. Houlditch(5) | 2004 | 425,000 | 1,441,529 | 7,206 | — | 8,000 | |||||||||||||||||||
Vice President and President, | 2003 | 420,923 | 701,159 | 7,226 | — | 867 | |||||||||||||||||||
North America Region | 2002 | 351,096 | 50,000 | 7,200 | — | — | |||||||||||||||||||
G. Toby Marion(6) | 2004 | 160,417 | — | 600 | — | 360,938 | |||||||||||||||||||
President, Asia/Pacific Region | 2003 | 345,208 | — | 7,200 | — | 867 | |||||||||||||||||||
2002 | 296,565 | 175,000 | 6,948 | 100,000 | — |
(1) | Other Annual Compensation includes the following: |
Automobile | Increase in Value of | Increase in Value of | ||||||||||||||
Allowance | Stock Options | Stock Appreciation Rights | ||||||||||||||
Taylor | 2004 | 10,800 | 9,039 | 5,961 | ||||||||||||
2003 | 7,200 | 74,136 | 92,396 | |||||||||||||
2002 | 7,200 | — | — | |||||||||||||
Hamann | 2004 | 232 | 18,525 | 31,943 | ||||||||||||
2003 | 18,200 | 127,089 | 158,395 | |||||||||||||
2002 | 15,400 | — | — | |||||||||||||
Houlditch | 2004 | 7,200 | 6 | — | ||||||||||||
2003 | 7,200 | 26 | — | |||||||||||||
2002 | 7,200 | — | — | |||||||||||||
Marion | 2004 | 600 | — | — | ||||||||||||
2003 | 7,200 | — | — | |||||||||||||
2002 | 6,948 | — | — |
7
Table of Contents
(2) | All other compensation includes the following: |
Matching | ||||||||||||||||
Consulting | Premiums Paid | Contributions | ||||||||||||||
Agreements | For Insurance | to 401(k) Plan | ||||||||||||||
Taylor | 2004 | — | 8,460 | 1,194 | ||||||||||||
2003 | — | — | 8,677 | |||||||||||||
2002 | — | — | 1,050 | |||||||||||||
Hamann | 2004 | 436,154 | — | — | ||||||||||||
2003 | — | 2,280 | 867 | |||||||||||||
2002 | — | 2,280 | — | |||||||||||||
Houlditch | 2004 | — | — | 8,000 | ||||||||||||
2003 | — | — | 867 | |||||||||||||
2002 | — | — | — | |||||||||||||
Marion | 2004 | 360,938 | — | — | ||||||||||||
2003 | — | — | 867 | |||||||||||||
2002 | — | — | — |
(3) | Mr. Taylor was elected President and Chief Executive Officer, and to the Board of Directors effective January 13, 2004. |
(4) | Mr. Hamann resigned effective January 13, 2004. |
(5) | Mr. Houlditch was elected to the Board of Directors effective April 21, 2004. |
(6) | Mr. Marion resigned effective January 31, 2004. |
Number of Securities | ||||||||||||||||||||||||
Underlying Unexercised | ||||||||||||||||||||||||
Shares | Options/SARs | Value of Unexercised | ||||||||||||||||||||||
Exercisable/Unexercisable | In-The-Money Options | |||||||||||||||||||||||
Exercisable/Unexercisable(1) | ||||||||||||||||||||||||
Acquired on | Value | |||||||||||||||||||||||
Name | Exercise | Realized | Exercisable | Unexercisable | Exercisable | Unexercisable | ||||||||||||||||||
James T. Taylor | — | — | 328,500 | 26,500 | $ | 164,783 | — | |||||||||||||||||
Jimmy C. Houlditch | — | — | 31,642 | 20,000 | $ | 25 | — | |||||||||||||||||
John R. Hamann | 400,000 | $ | 430,718 | 200,000 | — | — | — |
(1) | For purposes of this table, the value of the common stock is $1.34 per share, the average of the high and low sale prices of the common stock on December 31, 2004 as reported on the OTC Bulletin Board. |
8
Table of Contents
9
Table of Contents
Compensation Philosophy |
Executive Compensation |
10
Table of Contents
Respectfully submitted, | |
Compensation Committee | |
David B. Mathis, Chairman | |
Gen. John T. Chain, Jr. | |
Richard A. Freytag | |
Charles M. Harper |
11
Table of Contents
12
Table of Contents
Respectfully submitted, | |
Audit Committee | |
Richard A. Freytag, Chairman | |
David B. Mathis | |
Charles M. Harper |
13
Table of Contents
1999 | 2000 | 2001 | 2002 | 2003 | 2004 | ||||||||||||||||||||||||||
THOMAS GROUP, INC | 100.00 | 45.56 | 20.00 | 4.00 | 12.00 | 12.00 | |||||||||||||||||||||||||
PEER GROUP INDEX | 100.00 | 34.63 | 21.49 | 11.56 | 15.28 | 13.54 | |||||||||||||||||||||||||
NASDAQ MARKET INDEX | 100.00 | 62.85 | 50.10 | 34.95 | 61.64 | 56.97 | |||||||||||||||||||||||||
�� |
14
Table of Contents
Principal & | ||||||||||||||||||||||||||||
Interest | Semi-Annual | Original | 2004 | |||||||||||||||||||||||||
Issue | Date | Maturity | Interest | Interest | Principal | Interest | ||||||||||||||||||||||
Name | Date | Funded | Date | Accrual Dates | Rates | Amount | Expense | |||||||||||||||||||||
General John T. Chain, Jr. | 3/29/02 | 4/4/02 | 4/1/06 | Oct 1/Apr 1 | Prime + 6% | $ | 1,000,000 | $ | 103,699 | |||||||||||||||||||
General John T. Chain, Jr. | 5/31/02 | 5/28/02 | 6/1/06 | Dec 1/Jun 1 | Prime + 6% | $ | 400,000 | $ | 41,479 |
15
Table of Contents
Calendar Year | ||||||||
2004 | 2003 | |||||||
Audit fees(1) | $ | 129,613 | $ | 173,262 | ||||
Audit related fees(2) | $ | 9,096 | $ | 9,175 | ||||
Tax fees(3) | $ | 86,543 | $ | 107,586 | ||||
All other fees(4) | $ | 11,755 | $ | 5,400 |
(1) | Audit Fees — These are fees for professional services performed by Hein & Associates and Ernst & Young for the audit of the Company’s annual financial statements and review of financial statements included in the Company’s 10-Q filings, and services that are normally provided in connection with statutory regulatory filings or engagements. |
(2) | Audit Related Fees — These are fees for assurance and related services performed by Hein & Associates that are reasonably related to the performance of the audit or review of the Company’s financial statements. This includes: employee benefit and compensation plan audits; attestations by Hein & Associates that are not required by statute and consulting on financial accounting/reporting standards. |
(3) | Tax Fees — These are fees for professional services performed by Hein & Associates and Ernst & Young with respect to tax compliance, tax advice and tax planning. This includes preparation of original and amended tax returns for the Company and its consolidated subsidiaries; refund claims; payment planning; tax audit assistance; and tax work stemming from “Audit-Related” items. |
(4) | All Other Fees — These are fees for other permissible work performed by Hein & Associates and Ernst & Young that does not meet the above category descriptions. In 2004, the fees related to liquidation of the Company’s subsidiaries in Singapore and China. In 2003, the fees related to work performed by Ernst & Young regarding the change in the Company’s independent auditor. |
16
Table of Contents
General |
Audit Services |
Audit-related Services |
Tax Services |
All Other Services |
Pre-Approval Fee Levels |
17
Table of Contents
18
Table of Contents
By Order of the Board of Directors, | |
JAMES T. TAYLOR | |
President and Chief Executive Officer |
19
Table of Contents
This Proxy is Solicited by the Board of Directors for Annual Meeting — Wednesday, June 29, 2005
The undersigned hereby appoints David English and Mike Barhydt, and each of them with full power of substitution, proxies of the undersigned, with all the powers that the undersigned would possess if personally present to cast all votes that the undersigned would be entitled to vote at the Annual Meeting of Stockholders of Thomas Group, Inc. (the “Company”) to be held on Wednesday, June 29, 2005, at the principal executive offices of the Company, located at 5221 N. O’Connor Boulevard, Suite 500, Irving, Texas at 9:00 A.M., Central time, and any and all adjournments or postponements thereof, including (without limiting the generality of the foregoing) to vote and act as stated on the reverse side.
YOUR BOARD OF DIRECTORS RECOMMENDS A VOTEFORTHE PROPOSAL SET FORTH ON THE REVERSE SIDE.
In their discretion, the proxies are authorized to vote upon such other business as may properly come before the Annual Meeting. This Proxy will be voted at the Annual Meeting or any adjournment or postponement thereof as specified.
This Proxy hereby revokes all prior proxies given with respect to the shares of the undersigned.
Please complete, date, sign and mail this Proxy promptly in the enclosed envelope. No postage is required for mailing in the United States.
Table of Contents
MR A SAMPLE
DESIGNATION (IF ANY)
ADD 1
ADD 2
ADD 3
ADD 4
ADD 5
ADD 6
MMMMMMMMMMMM
000000000.000 ext
000000000.000 ext
000000000.000 ext
000000000.000 ext
000000000.000 ext
000000000.000 ext
000000000.000 ext
C 1234567890 JNT
o | Mark this box with an X if you have made changes to your name or address details above. |
A | Election of Directors |
For | Withhold | |||
01-John T. Chain, Jr. | o | o | ||
02-Richard A. Freytag | o | o | ||
03-Dorsey R. Gardner | o | o | ||
04-Charles M. Harper | o | o | ||
05-David B. Mathis | o | o | ||
06-James T. Taylor | o | o | ||
07-Jimmy C. Houlditch | o | o | ||
08-Edward P. Evans | o | o | ||
B | Authorized Signatures — Sign Here — This section must be completed for your instructions to be executed. |
Signature 1 — Please keep signature within the box | Signature 2 — Please keep signature within the box | Date (mm/dd/yyyy) | ||
/ / | ||||
1 U P X H H H P P P P 005349
001CD40001 00F5DC