UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
January 25, 2009
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Date of Report (Date of earliest event reported)
Con-way Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-5046 94-1444798
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
2855 Campus Drive, Suite 300, San Mateo, California 94403
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(Address of principal executive offices)
(zip code)
Registrant's telephone number, including area code:
(650) 378-5200
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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligations of the registrant
under any of the following provisions (see General Instruction A.2
below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN
OFFICERS
On January 25 and January 26, 2009, the Company's Compensation Committee,
together with (in the case of the compensation of the Company's Chief
Executive Officer) the other independent members of the Board of Directors,
approved the following compensation:
ANNUAL BASE SALARIES. None of the officers listed below received an increase
in annual base salary for 2009.
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|Officer |Title |2008 |% Increase|2009 |
| | |Annualized | |Annualized |
| | |Base Salary| |Base Salary|
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|Douglas |President and Chief Executive |$695,032 | 0% |$695,032 |
|W. |Officer | | | |
|Stotlar | | | | |
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|Stephen |Senior Vice President and |$425,048 | 0% |$425,048 |
|L. |Chief Financial Officer | | | |
|Bruffett | | | | |
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|Robert L.|Senior Vice President |$410,384 | 0% |$410,384 |
|Bianco | | | | |
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|John G. |Senior Vice President |$440,076 | 0% |$440,076 |
|Labrie | | | | |
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|Jennifer |Senior Vice President, General|$350,531 | 0% |$350,531 |
|W. |Counsel and Secretary | | | |
|Pileggi | | | | |
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|Kevin C. |Vice President - Operational |$357,031 | 0% |$357,031 |
|Schick |Accounting | | | |
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2009 SHORT-TERM INCENTIVE COMPENSATION AWARDS. The annual incentive
compensation awards are based upon performance goals approved by the
Compensation Committee. For the 2009 awards, performance goals are based on
operating income as adjusted for asset impairments, restructuring charges and
accounting changes.
The performance goals for the awards made to Messrs. Bianco and Labrie are
based on adjusted operating income at the Company's Menlo Logistics and Con-
way Freight business units, respectively. The awards to the executives
employed by Con-way Inc. (Ms. Pileggi and Messrs. Stotlar, Bruffett, and
Schick) are based on the performance goals applicable to the Company's three
primary business units (Con-way Freight, Menlo Logistics and Con-way
Truckload), with executives entitled to receive specified percentages of the
payout levels achieved at the business units. For each award the Compensation
Committee has set a minimum achievement level below which no payouts are
received, a target achievement level at which each executive will earn a
payout equal to the target amount set forth in the table below, and a maximum
achievement level at or above which each executive will earn a payout equal
to twice his or her target amount.
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|Officer | Title |Target |
| | |Amount ($) |
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|Douglas W. | President and Chief Executive Officer |$ 695,032 |
|Stotlar | | |
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|Stephen L. | Senior Vice President and Chief Financial |$ 297,534 |
|Bruffett | Officer | |
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|Robert L. | Senior Vice President |$ 287,269 |
|Bianco | | |
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|John G. Labrie| Senior Vice President |$ 330,057 |
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|Jennifer W. | Senior Vice President, General Counsel and |$ 245,372 |
|Pileggi | Secretary | |
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|Kevin C. | Vice President - Operational Accounting |$ 249,922 |
|Schick | | |
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2009 LONG-TERM INCENTIVE COMPENSATION AWARDS
2009 long-term incentive compensation awards include stock option awards and
restricted stock unit awards.
A. STOCK OPTION AWARDS. Each stock option award described in the table
below is made pursuant to, and is governed by the terms of, the Company's
2006 Equity and Incentive Plan, as amended, and a stock option agreement in
the form attached as Exhibit 99.2 to the Company's Report on Form 8-K dated
September 29, 2006. These documents provide that the options have a term of
ten years, will vest in equal annual installments over three years,
commencing January 1, 2010, or earlier in certain circumstances (including in
the event of death or disability or upon a Change in Control). Upon
retirement at age 65 or pursuant to the "Rule of 85" (that is, age plus years
of service equal to or greater than 85), the options vest and are exercisable
for a period of one year thereafter. The foregoing description of the stock
option awards is qualified in its entirety by reference to the form of stock
option agreement attached as Exhibit 99.2 to the Company's Report on Form 8-K
dated September 29, 2006.
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|Officer |Title |Non- |Incentive |Total |Exercise Price|
| | |Qualified |Stock |Option | |
| | |Option |Option |Shares | |
| | |Shares |Shares | | |
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|Douglas |President and Chief |170,580 |4,933 |175,513| $20.27 |
|W. |Executive Officer | | | | |
|Stotlar | | | | | |
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|Stephen |Senior Vice |55,443 |4,933 |60,376 | $20.27 |
|L. |President and Chief | | | | |
|Bruffett |Financial Officer | | | | |
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|Robert L.|Senior Vice |53,360 |4,933 |58,293 | $20.27 |
|Bianco |President | | | | |
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|John G. |Senior Vice |57,578 |4,933 |62,511 | $20.27 |
|Labrie |President | | | | |
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|Jennifer |Senior Vice |44,858 |4,933 |49,791 | $20.27 |
|W. |President, General | | | | |
|Pileggi |Counsel and | | | | |
| |Secretary | | | | |
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|Kevin C. |Vice President - |45,782 |4,933 |50,715 | $20.27 |
|Schick |Operational | | | | |
| |Accounting | | | | |
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B. RESTRICTED STOCK UNIT AWARDS. Each restricted stock unit award described
in the table below is made pursuant to, and is governed by the terms of, the
Company's 2006 Equity and Incentive Plan, as amended, and a restricted stock
unit award agreement, in the form attached hereto as Exhibit 99. These
documents provide that the restricted stock units will vest on January 26,
2012 (the third anniversary of the grant date), or earlier in certain
circumstances (including in the event of death or disability or upon a Change
in Control). In addition, a pro rata portion (based on the number of months
elapsed divided by 36) will vest upon retirement at age 65 or pursuant to the
Rule of 85. Recipients do not receive dividends equivalents in the event that
a cash dividend is declared on the Company's common stock, but do receive
dividend equivalents if stock dividends are declared. The foregoing
description of the restricted stock awards is qualified in its entirety by
reference to the form of restricted stock unit award agreement attached
hereto as Exhibit 99.
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|Officer |Title |Number of Restricted |
| | |Stock Units |
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|Douglas W. |President and Chief Executive Officer | 68,577 |
|Stotlar | | |
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|Stephen L. |Senior Vice President and | 23,590 |
|Bruffett |Chief Financial Officer | |
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|Robert L. |Senior Vice President | 22,777 |
|Bianco | | |
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|John G. |Senior Vice President | 24,425 |
|Labrie | | |
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|Jennifer W.|Senior Vice President, General Counsel | 19,455 |
|Pileggi |and Secretary | |
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|Kevin C. |Vice President - Operational Accounting| 19,816 |
|Schick | | |
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SPECIAL CASH BONUS
In 2008, a number of Mr. Schick's in-the-money stock options expired,
following a prolonged period during which Mr. Schick was precluded under the
Company's trading policy from exercising the options. On January 25, 2009,
the Compensation Committee awarded Mr. Schick a one-time special cash bonus
of $75,000, the purpose of which is to compensate Mr. Schick for amounts he
might have realized had he been permitted to exercise the options.
DEPARTURE OF DIRECTOR. Robert D. Rogers, age 72 and a Class II director who
has served on the Board of Directors since 1990, will be retiring from the
Board on May 19, 2009, in accordance with the Company's mandatory retirement
policy for directors.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit No. Description
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EX 99 Restricted Stock Unit Grant Agreement
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Con-way Inc.
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(Registrant)
January 29, 2009 /s/ Jennifer W. Pileggi
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Jennifer W. Pileggi
General Counsel and Corporate Secretary