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Preliminary Proxy Statement |
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Definitive Proxy Statement |
Definitive Additional Materials |
Soliciting Material Under Rule 14a-12 |
HNI CORPORATION |
(Name of Registrant as Specified In Its Charter) |
Payment of Filing Fee (Check the appropriate box): | ||
No fee required | ||
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. | ||
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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. | ||
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1. | Electing |
2. | Ratifying the Audit Committee's selection of KPMG LLP as the Corporation's independent registered public accountant for the fiscal year ending December |
3. | Holding an advisory vote to approve named executive officer compensation; and |
4. | Transacting any other business properly brought before the meeting or any adjournment or postponement. |
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THE BOARD RECOMMENDS A VOTE "FOR" THE ELECTION OF THE NOMINEES AS DIRECTORS. |
Name | Fees Earned or Paid in Cash ($) (1) | Stock Awards ($) (2) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) (3) | All Other Compensation ($) (4) | Total ($) |
Mary A. Bell | 65,070 | 105,000 | — | 1,988 | 172,058 |
Miguel M. Calado | 65,070 | 105,000 | — | 1,988 | 172,058 |
Cheryl A. Francis | 81,570 | 105,000 | — | 1,988 | 188,558 |
John R. Hartnett | 66,570 | 105,000 | — | 1,988 | 173,558 |
Mary K.W. Jones | 65,070 | 105,000 | — | 1,988 | 172,058 |
Larry B. Porcellato | 80,820 | 105,000 | 300 | 1,988 | 188,108 |
Abbie J. Smith | 69,820 | 105,000 | — | 1,988 | 176,808 |
Brian E. Stern | 75,070 | 105,000 | — | 1,988 | 182,058 |
Ronald V. Waters, III | 75,070 | 105,000 | 2,531 | 1,988 | 184,589 |
(1) | For 2017, the independent Directors listed in the table above each earned the following fees: Ms. Bell - $65,070 annual retainer; Mr. Calado - $65,070 annual retainer; Ms. Francis - $65,070 annual retainer plus $1,500 retainer for service on the Audit Committee, $15,000 retainer for service as Chairperson of the Audit Committee; Mr. Hartnett - $65,070 annual retainer plus $1,500 retainer for service on the Audit Committee; Ms. Jones - $65,070 annual retainer; Mr. Porcellato – $65,070 annual retainer plus $1,500 retainer for service on the Audit Committee plus $14,250 retainer for service as Lead Director; Ms. Smith – $65,070 annual retainer plus $4,750 retainer for service as Lead Director; Mr. Stern – $65,070 annual retainer plus $10,000 retainer for service as Chairperson of the Governance Committee; and Mr. Waters - $65,070 annual retainer plus $10,000 retainer for service as Chairperson of the Compensation Committee. Mses. Bell, Jones and Smith received 100% of cash retainer, and Mr. Hartnett received 75% of cash retainer, in the form of Common Stock under the 2007 Equity Plan for the first quarter of 2017 and under the 2017 Equity Plan for the remainder of the year, which equated to the following: Ms. Bell - 1,639 shares; Ms. Jones - 1,639; Ms. Smith - 1,740; and Mr. Hartnett - 1,253. |
(2) | Represents the portion of the annual retainer paid in the form of shares – a $105,000 Common Stock grant authorized by the Board on May 9, 2017 under the 2017 Equity Plan. Each independent Director serving on the Board as of May 9, 2017 was issued 2,325 shares of Common Stock at a price of $45.16 (the closing price of a share of Common Stock on the date of grant, May 9, 2017) for a total grant date fair value of $104,997, as computed in accordance with FASB Accounting Standards Codification Topic 718. The difference between the $105,000 Common Stock grant authorized by the Board and the actual value of Common Stock issued ($104,997) was approximately $3. As the Corporation only issues fractional shares under the Directors Deferred Plan, and not under the 2017 Equity Plan, the Corporation paid each independent Director serving on the Board as of May 9, 2017, $3, either in the form of cash in lieu of a fractional share for those Directors who did not elect to defer their Common Stock grant under the Directors Deferred Plan or in the form of a fractional share for those Directors who did elect to defer their Common Stock grant under the Directors Deferred Plan. Ms. Jones deferred 100% of her Common Stock grants under the Directors Deferred Plan. There are no unexercised option awards or unvested stock awards outstanding as of the end of 2017 for any of the Directors. |
(3) | Includes above-market interest earned on cash compensation deferred under the Directors Deferred Plan. Interest on deferred cash compensation is earned at one percent over the prime rate. Above-market earnings represent the difference between the interest earned under the Directors Deferred Plan and 120% of the applicable federal long-term rate. Above-market interest earned by Mr. Porcellato is for cash compensation deferred prior to January 1, 2007, and interest earned by Mr. Waters is for cash compensation deferred prior to January 1, 2010. |
(4) | Includes dividends earned on Common Stock grants during 2017. |
THE BOARD RECOMMENDS A VOTE "FOR" RATIFICATION OF THE AUDIT COMMITTEE'S SELECTION OF KPMG LLP AS THE CORPORATION'S INDEPENDENT REGISTERED PUBLIC ACCOUNTANT FOR FISCAL 2018. |
Fee Category | Fiscal 2017 | Fiscal 2016 | ||||||
Audit Fees (1) | $ | 1,800,000 | $ | 1,469,000 | ||||
Audit-Related Fees (2) | 5,000 | 51,829 | ||||||
Tax Fees (3) | 50,118 | 196,137 | ||||||
All Other Fees (4) | 41,925 | — | ||||||
Total | $ | 1,897,043 | $ | 1,716,966 |
KPMG Fiscal 2015 | PwC Fiscal 2014 | |||||
Audit Fees (1) | $ | 1,300,000 | $ | 1,266,447 | ||
Audit-Related Fees (2) | — | 176,981 | ||||
Tax Fees (3) | 278,389 | 550,998 | ||||
All Other Fees | — | 12,000 | ||||
Total | $ | 1,578,389 | $ | 2,006,426 | ||
(1) | Audit |
(2) |
(3) | Tax |
(4) | All |
Name | Position |
Stan A. Askren | Chairman, President and Chief Executive Officer, HNI Corporation |
Marshall H. Bridges | Chief Financial Officer; Senior Vice President, HNI Corporation |
Kurt A. Tjaden | President HNI International; Senior Vice President, HNI Corporation (Former Chief Financial Officer) |
Jeffrey D. Lorenger | President, Office Furniture, HNI Corporation |
Vincent P. Berger | President, Hearth & Home Technologies; Executive Vice President, HNI Corporation |
Jerald K. Dittmer | Senior Vice President, Strategic Development |
1. | Executive Compensation Overview |
2. | Executive Compensation Objectives and Governance |
3. | Executive Compensation Elements |
4. | Additional Compensation Programs and Policies |
Element | Description | Purpose | |
Base Salary (see page 19) | Annual cash compensation. | Compensation for expected day-to-day responsibilities. Pay adjustments are based on capabilities, responsibilities and market factors. | |
Annual Incentive Opportunity (see page 20) | Targeted variable compensation equal to a percentage of base salary paid once a year and based 80% on financial performance and 20% on individual objectives. | Focus executives on annual performance goals, typically financially driven. | |
Long-term Incentive Opportunity (see page 22) | Variable performance compensation typically in the form of stock options and cash earned at the end of a three-year period based on economic profit goals. | Align executives' decisions with long-term shareholder value creation. Promote executive retention. |
HNI Compensation Practices | ||
What We Do | ||
Pay for performance | P | A large majority of executive compensation is based on achievement of long-term value creation. |
Stock ownership guidelines | P | Stock ownership guidelines require the CEO to hold shares valued at 5x base salary and other Named Executive Officers at 3x base salary. |
Double trigger change in control | P | Both a change in control and involuntary termination are required for the change in control agreement to take effect. |
Clawback policy | P | Performance-based compensation, under certain circumstances, will be canceled or reclaimed if an executive engages in fraud or financial misconduct. |
Anti-hedging policy | P | Officers and directors are prohibited from engaging in hedging or pledging transactions with respect to HNI stock. |
Independent compensation consultant | P | The Compensation Committee engages an independent compensation consultant who works only for the Committee, and not for management. |
Annual shareholder Say on Pay | P | The Corporation holds an annual advisory vote regarding Named Executive Officer compensation. |
Annual compensation risk assessment | P | The Compensation Committee reviews a risk assessment of the Named Executive Officer compensation program every year. |
What We Don't Do | ||
No repricing of underwater options | r | Underwater options are not repriced or replaced. |
No perquisites | r | Perquisites are not provided to executives or directors. |
No employment contracts | r | Neither the CEO nor any other Named Executive Officers have an employment contract. |
No dividends on unearned performance awards | r | Dividends are not paid on restricted stock units. |
No supplemental executive benefits | r | Executive officers are not offered additional benefits beyond those generally available to all members. |
Company | Annual Revenues ($ billions) | Company | Annual Revenues ($ billions) |
Carlisle Companies Incorporated | $3.9 | Donaldson Company, Inc. | $2.5 |
Leggett & Platt, Incorporated | $3.9 | Lincoln Electric Holdings Inc. | $2.4 |
Snap-On Incorporated | $3.9 | Herman Miller, Inc. | $2.3 |
Lennox International Inc. | $3.8 | Kennametal Inc. | $2.1 |
Regal Beloit Corporation | $3.3 | Briggs & Stratton Corporation | $1.8 |
Steelcase Inc. | $3.1 | Armstrong World Industries, Inc. | $1.3 |
A.O. Smith Corporation | $3.0 | Actuant Corporation | $1.1 |
Valmont Industries | $2.7 | Knoll Inc. | $1.1 |
HNI Corporation annual revenue: $2.2 Billion. |
Name | 2014 Annual Base Salary ($) | 2015 Annual Base Salary ($) | Increase ($) | Increase (%) | Approximate Market Median Annual Base Salary ($) | 2015 Base Salary as Percentage of Market Median (%) | 2016 Annual Base Salary ($) | 2017 Annual Base Salary ($) | Increase ($) | Increase (%) | Approximate Market Median Annual Base Salary ($) | 2017 Base Salary as Percentage of Market Median (%) |
Stan A. Askren | 1,050,000 | 1,086,750 | 36,750 | 3.5 | 1,003,611 | 108 | 1,135,654 | 1,181,080 | 45,426 | 4.0 | 1,010,215 | 117 |
Marshall H. Bridges | 264,992 | 385,000 | 120,008 | 45.3 | 473,904 | 81 | ||||||
Kurt A. Tjaden | 407,260 | 423,550 | 16,290 | 4.0 | 452,435 | 94 | 440,490 | 456,000 | 15,510 | 3.5 | 434,136 | 105 |
Bradley D. Determan | 413,385 | 429,920 | 16,535 | 4.0 | 464,785 | 92 | ||||||
Jeffrey D. Lorenger | 467,220 | 600,000 | 132,780 | 28.4 | 621,313 | 97 | ||||||
Vincent P. Berger | 350,000 | 385,000 | 35,000 | 10.0 | 429,515 | 90 | ||||||
Jerald K. Dittmer | 457,895 | 475,755 | 17,860 | 3.9 | 485,304 | 98 | 491,930 | 508,163 | 16,233 | 3.3 | 500,799 | 101 |
Jeffrey D. Lorenger | 425,000 | 447,100 | 22,100 | 5.2 | 480,816 | 93 |
Award Target as a % of Base Salary | Basis of Award Achievement | |||
Chairman and CEO | 120% | Achievement of Financial Goals | 80% | |
Other Named Executive Officers* | 75% | Attainment of Individual Organic Sales Goals | 20% | |
*In conjunction with his position change, Mr. Dittmer's award target was changed to 70% of his base salary effective November 6, 2017. |
Economic Profit Achievement ($) | Financial Component of Annual Incentive Compensation Award – Payout (%) |
Less than $40,907,000 | 0% |
$40,907,000 | 50% |
$46,310,000 | 75% |
$51,713,000 | 100% |
$53,960,500 | 125% |
$56,208,000 | 150% |
$58,455,500 | 175% |
$60,703,000 | 200% |
Economic Profit Achievement ($) | Financial Component of Annual Incentive Compensation Award – Payout (%) |
Less than $22,866,000 | 0% |
$22,866,000 | 50% |
$27,064,000 | 75% |
$31,262,000 | 100% |
$32,872,500 | 125% |
$34,483,000 | 150% |
$36,093,500 | 175% |
$37,704,000 | 200% |
Name | Annual Incentive Compensation Award Target ($) | Actual Award Payout Attributable to Financial Goals ($) | Actual Award Payout Attributable to Strategic Objectives ($) | Total Payout ($) | Actual Payout as % of Target (%) |
Stan A. Askren | 1,304,100 | 923,303 | 547,722 | 1,471,025 | 113 |
Kurt A. Tjaden | 317,661 | 224,904 | 128,335 | 353,239 | 111 |
Bradley D. Determan | 322,441 | 106,406 | 125,107 | 231,513 | 72 |
Jerald K. Dittmer | 356,815 | 342,543 | 139,872 | 482,415 | 135 |
Jeffrey D. Lorenger | 335,325 | 324,528 | 124,741 | 449,269 | 134 |
Name | Total Long-Term Incentive Compensation Target ($) | Total Long-Term Incentive Compensation Award Target (% of Annual Base Salary at Time of Award) |
Stan A. Askren | 3,260,250 | 300 |
Kurt A. Tjaden | 610,887 | 150 |
Bradley D. Determan | 620,079 | 150 |
Jerald K. Dittmer | 801,318 | 175 |
Jeffrey D. Lorenger | 782,425 | 175 |
Name | Targeted Value of Stock Options Granted in 2015 ($)(1) | Number of Stock Options Granted (#) |
Stan A. Askren | 2,445,195 | 107,908 |
Kurt A. Tjaden | 458,163 | 20,219 |
Bradley D. Determan | 465,051 | 20,523 |
Jerald K. Dittmer | 600,989 | 26,522 |
Jeffrey D. Lorenger | 586,826 | 25,897 |
Payout % | Economic Profit Achievement for Fiscal 2015 | ||
2015-2017 Plan | 2014-2016 Plan | 2013-2015 Plan | |
25% | $32,464,000 | $12,000,000 | $1,000,000 |
50% | $38,880,000 | $20,000,000 | $10,000,000 |
75% | $45,296,000 | $28,000,000 | $20,000,000 |
100% | $51,713,000 | $36,000,000 | $30,000,000 |
125% | $56,512,000 | $41,000,000 | $39,000,000 |
150% | $61,311,000 | $45,000,000 | $48,000,000 |
175% | $66,110,000 | $50,000,000 | $57,000,000 |
200% | $70,909,000 | $55,000,000 | $66,000,000 |
Name | Performance Plan | Target Award for 2015 Performance Period ($) | Actual 2015 Performance Period Achievement (%) | Award Earned for 2015 Performance Period Achievement ($) |
Stan A. Askren | 2015-2017 | 271,688 | 76% | 206,483 |
2014-2016 | 262,500 | 162% | 425,250 | |
2013-2015 | 220,077 | 159% | 349,922 | |
Total | 754,265 | 981,655 | ||
Kurt A. Tjaden | 2015-2017 | 50,907 | 76% | 38,689 |
2014-2016 | 48,949 | 162% | 79,297 | |
2013-2015 | 47,294 | 159% | 75,197 | |
Total | 147,151 | 193,183 | ||
Bradley D. Determan | 2015-2017 | 51,673 | 76% | 39,271 |
2014-2016 | 49,686 | 162% | 80,491 | |
2013-2015 | 48,006 | 159% | 76,330 | |
Total | 149,365 | 196,092 | ||
Jerald K. Dittmer | 2015-2017 | 66,777 | 76% | 50,751 |
2014-2016 | 64,208 | 162% | 104,017 | |
2013-2015 | 52,919 | 159% | 84,141 | |
Total | 183,904 | 238,909 | ||
Jeffrey D. Lorenger | 2015-2017 | 65,202 | 76% | 49,554 |
2014-2016 | 61,979 | 162% | 100,406 | |
2013-2015 | 44,200 | 159% | 70,278 | |
Total | 171,381 | 220,238 |
Name | Annual Incentive Compensation Award Target ($) | Actual Award Payout Attributable to Financial Goals ($) | Actual Award Payout Attributable to Individual Objectives ($) | Total Payout ($) | Actual Payout as % of Target (%) |
Stan A. Askren | 1,417,296 | 0 | 192,752 | 192,752 | 13.6 |
Marshall H. Bridges* | 283,197 | 2,399 | 39,181 | 41,580 | 14.7 |
Kurt A. Tjaden | 342,000 | 340,316 | 56,825 | 397,141 | 116.1 |
Jeffrey D. Lorenger | 450,000 | 72,900 | 87,300 | 160,200 | 35.6 |
Vincent P. Berger | 288,750 | 168,630 | 53,130 | 221,760 | 76.8 |
Jerald K. Dittmer* | 377,213 | 0 | 57,336 | 57,336 | 15.2 |
*Messrs. Bridges and Dittmer experienced changes in their annual incentive targets during 2017, related to their position changes. Amounts above reflect actual 2017 target opportunity and payout amounts based on the number of weeks spent in each position (and therefore at each target level) in 2017. |
Economic Profit Achievement ($M) | Financial Component of Annual Incentive Compensation Award – Payout (%) |
Less than 48.2 | 0% |
48.2 | 35% |
62.3 | 100% |
74.2 | 200% |
Name | Total Long-Term Incentive Compensation Target ($) | Total Long-Term Incentive Compensation Award Target (% of Annual Base Salary at Time of Award) |
Stan A. Askren | 3,543,240 | 300 |
Marshall H. Bridges | 577,500 | 150 |
Kurt A. Tjaden | 660,735 | 150 |
Jeffrey D. Lorenger | 981,162 | 200 |
Vincent P. Berger | 437,500 | 125 |
Jerald K. Dittmer | 983,859 | 200 |
Name | Targeted Value of Stock Options Granted in 2017 ($)(1) | Stock Options Granted (#) |
Stan A. Askren | 2,396,340 | 166,297 |
Marshall H. Bridges | 390,569 | 27,104 |
Kurt A. Tjaden | 446,869 | 31,011 |
Jeffrey D. Lorenger | 663,581 | 46,050 |
Vincent P. Berger | 295,881 | 20,533 |
Jerald K. Dittmer | 665,396 | 46,176 |
(1) | The Black-Scholes option value for award purposes was $15.98 and differs from the Black-Scholes option value calculated in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation ("FASB ASC Topic 718"), for financial statement reporting purposes ($14.41). The difference between the Black-Scholes option value for award purposes and for financial statement reporting purposes results from utilizing a ten-year option life when calculating the value of an award and a six-year expected option life when reporting the value of the award under FASB ASC Topic 718. Utilization of the ten-year option life when calculating the value of an award results in fewer options granted to executives due to the higher option value produced. |
2017 Economic Profit Matrix | |||
Payout % | 2017-2019 Plan ($M) | 2016-2018 Plan ($M) | 2015-2017 Plan ($M) |
25% | 25 | 45 | 58 |
100% | 45 | 69 | 91 |
200% | 71 | 84 | 130 |
Name | Long-Term Performance Plan | Target Award for 2017 Performance Period ($) | Actual 2017 Performance Period Achievement (%) | Award Earned for 2017 Performance Period Achievement ($) |
Stan A. Askren | 2017-2019 | 295,270 | 0 | — |
2016-2018 | 283,913 | 0 | — | |
2015-2017 | 271,688 | 0 | — | |
Total | 850,871 | 0 | — | |
Marshall H. Bridges | 2017-2019 | 48,125 | 0 | — |
2016-2018 | 33,124 | 0 | — | |
2015-2017 | 31,850 | 0 | — | |
Total | 113,099 | 0 | — | |
Kurt A. Tjaden | 2017-2019 | 55,061 | 0 | — |
2016-2018 | 52,944 | 0 | — | |
2015-2017 | 50,907 | 0 | — | |
Total | 158,912 | 0 | — | |
Jeffrey D. Lorenger | 2017-2019 | 81,764 | 0 | — |
2016-2018 | 77,870 | 0 | — | |
2015-2017 | 65,202 | 0 | — | |
Total | 224,836 | 0 | — | |
Vincent P. Berger | 2017-2019 | 36,458 | 0 | — |
2016-2018 | 37,500 | 0 | — | |
2015-2017 | 37,500 | 0 | — | |
Total | 111,458 | 0 | — | |
Jerald K. Dittmer | 2017-2019 | 81,988 | 0 | — |
2016-2018 | 79,292 | 0 | — | |
2015-2017 | 66,777 | 0 | — | |
Total | 228,057 | 0 | — |
Position | $ Value of Shares |
Chairman of the Board, President and CEO | |
Operating Company (Unit) Presidents, Chief Financial Officer, and Executive and Senior Vice Presidents | |
Other Officers |
Name and Principal Position | Year | Salary ($) | Bonus ($) (1) | Stock Awards ($) (2) | Option Awards ($) (3) | Non-Equity Incentive Plan Compensation ($) (4) | All Other Compensation ($) (5) | Total ($) | |||||||
Stan A. Askren Chairman, President and Chief Executive Officer, HNI Corporation | 2015 | 1,082,510 | 11,422 | — | 1,990,903 | 2,452,680 | 345,363 | 5,882,878 | |||||||
2014 | 1,050,612 | 9,841 | — | 1,758,450 | 2,404,414 | 230,722 | 5,454,039 | ||||||||
2013 | 875,934 | 7,395 | — | 1,802,901 | 1,781,233 | 149,032 | 4,616,496 | ||||||||
Kurt A. Tjaden Senior Vice President and Chief Financial Officer, HNI Corporation | 2015 | 413,524 | 11,422 | — | 373,041 | 546,424 | 99,256 | 1,443,667 | |||||||
2014 | 405,149 | 9,841 | — | 327,909 | 560,448 | 73,753 | 1,377,101 | ||||||||
2013 | 383,190 | 7,395 | — | 387,443 | 445,521 | 55,561 | 1,279,110 | ||||||||
Bradley D. Determan Executive Vice President, HNI Corporation President, Hearth & Home Technologies Group | 2015 | 424,198 | 14,047 | — | 378,649 | 427,604 | 63,970 | 1,308,468 | |||||||
2014 | 415,526 | 15,224 | — | 332,834 | 562,770 | 54,977 | 1,381,331 | ||||||||
2013 | 392,576 | 10,188 | — | 393,269 | 599,073 | 85,842 | 1,480,948 | ||||||||
Jerald K. Dittmer Executive Vice President, HNI Corporation President, The HON Company | 2015 | 473,007 | 11,965 | — | 489,331 | 721,323 | 115,273 | 1,810,899 | |||||||
2014 | 463,654 | 11,180 | — | 430,120 | 514,235 | 101,172 | 1,520,361 | ||||||||
2013 | 437,354 | 10,111 | — | 433,523 | 520,560 | 91,495 | 1,493,042 | ||||||||
Jeffrey D. Lorenger Executive Vice President, HNI Corporation President, HNI Contract Furniture Group | 2015 | 444,550 | 8,295 | — | 477,800 | 669,506 | 85,706 | 1,685,857 | |||||||
2014 | 425,347 | 8,385 | — | 415,186 | 520,953 | 67,022 | 1,436,892 | ||||||||
2013 | 365,075 | 7,752 | — | 635,159 | 391,574 | 59,055 | 1,458,616 |
Name and Principal Position | Year | Salary ($) | Bonus ($) (6) | Option Awards ($) (7) | Non-Equity Incentive Plan Compensation ($) (8) | All Other Compensation ($) (9) | Total ($) | ||||||||||||||||||
Stan A. Askren Chairman, President and Chief Executive Officer, HNI Corporation | 2017 | 1,174,965 | 12,002 | 2,396,340 | 192,752 | 371,871 | 4,147,930 | ||||||||||||||||||
2016 | 1,130,011 | 14,019 | 2,300,226 | 2,105,993 | 359,542 | 5,909,791 | |||||||||||||||||||
2015 | 1,082,510 | 11,422 | 1,990,903 | 2,452,680 | 345,363 | 5,882,878 | |||||||||||||||||||
Marshall H. Bridges Chief Financial Officer; Senior Vice President, HNI Corporation (1) | 2017 | 375,769 | 10,452 | 390,569 | 41,580 | 54,405 | 872,775 | ||||||||||||||||||
2016 | — | — | — | — | — | — | |||||||||||||||||||
2015 | — | — | — | — | — | — | |||||||||||||||||||
Kurt A. Tjaden Senior Vice President, HNI Corporation; President, HNI International (2) | 2017 | 446,157 | 12,002 | 446,869 | 397,141 | 114,275 | 1,416,444 | ||||||||||||||||||
2016 | 430,064 | 14,019 | 428,943 | 491,983 | 111,399 | 1,476,408 | |||||||||||||||||||
2015 | 413,524 | 11,422 | 373,041 | 546,424 | 99,256 | 1,443,667 | |||||||||||||||||||
Jeffrey D. Lorenger President, Office Furniture (3) | 2017 | 546,354 | 8,168 | 663,581 | 160,200 | 90,541 | 1,468,844 | ||||||||||||||||||
2016 | 464,898 | 9,792 | 630,893 | 465,804 | 104,493 | 1,675,880 | |||||||||||||||||||
2015 | 444,550 | 8,295 | 477,800 | 669,506 | 85,706 | 1,685,857 | |||||||||||||||||||
Vincent P. Berger President, Hearth & Home Technologies; Executive Vice President, HNI Corporation (4) | 2017 | 372,885 | 15,954 | 295,881 | 221,760 | 73,938 | 980,418 | ||||||||||||||||||
2016 | — | — | — | — | — | — | |||||||||||||||||||
2015 | — | — | — | — | — | — | |||||||||||||||||||
Jerald K. Dittmer Senior Vice President, Strategic Development (5) | 2017 | 505,354 | 12,420 | 665,396 | 57,336 | 162,267 | 1,402,773 | ||||||||||||||||||
2016 | 489,441 | 13,727 | 642,416 | 748,923 | 134,595 | 2,029,102 | |||||||||||||||||||
2015 | 473,007 | 11,965 | 489,331 | 721,323 | 115,273 | 1,810,899 |
(1) | Mr. Bridges served as Vice President, Finance, Contract Furniture Group prior to his appointment as Chief Financial Officer on January 19, 2017. Mr. Bridges was promoted from Vice President, HNI Corporation to Senior Vice President, HNI Corporation on February 14, 2018. |
Mr. Tjaden served as Chief Financial Officer prior to his appointment as President, HNI International on January 19, 2017. |
(3) | Mr. Lorenger served as Executive Vice President, HNI Corporation; President, Contract Furniture Group prior to his appointment as President, Office Furniture, HNI Corporation on June 7, 2017. |
(4) | Mr. Berger was promoted to Executive Vice President, HNI Corporation on February 14, 2018. |
(5) | Mr. Dittmer served as Executive Vice President, HNI Corporation; President, The HON Company until his appointment as Senior Vice President, Strategic Development on November 6, 2017. Mr. Dittmer retired effective February 16, 2018. |
(6) | The amounts in this column reflect the payments of cash profit-sharing during calendar years |
The amounts in this column reflect the aggregate grant date fair value of stock options granted in |
(8) | |
The amounts in this column include three active long-term plans. |
(9) | |
The amounts in this column include the Corporation's contributions to the Retirement Plan, the dollar value of Corporation-paid life insurance premiums under the Life Insurance Plan, both of which are generally available to all members, and the dollar value of Common Stock paid under the SIP. Contributions under the Retirement Plan in 2017, 2016 and 2015 were as follows: Mr. Askren – $23,311; $25,030; $22,547; Mr. Bridges – $21,870; Mr. Tjaden – $23,311; $25,030; $22,547; Mr. Lorenger – $19,746; $21,099; $19,639; Mr. Berger – $23,412; Mr. Dittmer – $23,701 $24,758; $23,052. The dollar value of Corporation-paid life insurance premiums under the Life Insurance Plan in 2017, 2016 and 2015 were $67 per year for each NEO. The dollar values of Common Stock earned under the SIP for 2017, 2016 and 2015 were as follows: Mr. Askren – $348,493; $334,445; $322,749; Mr. Bridges – $32,467; Mr. Tjaden – $90,896; $86,302, $76,642; Mr. Lorenger – $70,728; $83,327; $66,000; Mr. Berger – $50,459; and Mr. Dittmer – $138,499; $109,770; $92,155. The SIP Common Stock for 2017 was issued February 26, 2018; 2016 was issued February 27, 2017; and 2015 was issued February 29, 2016. |
Name | Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Share) | Grant Date Fair Value of Stock and Option Awards ($) | ||||||||
Threshold ($) | Target ($) | Maximum ($) | |||||||||||
Stan A. Askren | |||||||||||||
Stock Options | 2/18/2015 | 107,908 | 51.54 | 1,990,903 | |||||||||
2015-2017 Performance Plan | 2/18/2015 | 203,766 | 815,063 | 1,630,126 | |||||||||
Incentive Plan | 2/18/2015 | 391,230 | 1,304,100 | 2,216,970 | |||||||||
Kurt A. Tjaden | |||||||||||||
Stock Options | 2/18/2015 | 20,219 | 51.54 | 373,041 | |||||||||
2015-2017 Performance Plan | 2/18/2015 | 38,181 | 152,722 | 305,444 | |||||||||
Incentive Plan | 2/18/2015 | 95,298 | 317,661 | 540,024 | |||||||||
Bradley D. Determan | |||||||||||||
Stock Options | 2/18/2015 | 20,523 | 51.54 | 378,649 | |||||||||
2015-2017 Performance Plan | 2/18/2015 | 38,755 | 155,020 | 310,040 | |||||||||
Incentive Plan | 2/18/2015 | 96,732 | 322,441 | 548,150 | |||||||||
Jerald K. Dittmer | |||||||||||||
Stock Options | 2/18/2015 | 26,522 | 51.54 | 489,331 | |||||||||
2015-2017 Performance Plan | 2/18/2015 | 50,083 | 200,330 | 400,660 | |||||||||
Incentive Plan | 2/18/2015 | 107,045 | 356,815 | 606,586 | |||||||||
Jeffrey D. Lorenger | |||||||||||||
Stock Options | 2/18/2015 | 25,897 | 51.54 | 477,800 | |||||||||
2015-2017 Performance Plan | 2/18/2015 | 48,902 | 195,606 | 391,212 | |||||||||
Incentive Plan | 2/18/2015 | 100,598 | 335,325 | 570,053 |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards | |||||||||||||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) | ||||||||||||||||||
Stan A. Askren | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 166,297 | 46.62 | 2,396,340 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 221,453 | 885,810 | 1,771,620 | ||||||||||||||||||||||
Annual Incentive Plan | 538,572 | 1,417,296 | 2,621,998 | ||||||||||||||||||||||
Marshall H. Bridges | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 27,104 | 46.62 | 390,569 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 36,094 | 144,375 | 288,750 | ||||||||||||||||||||||
Annual Incentive Plan | 107,615 | 283,197 | 523,914 | ||||||||||||||||||||||
Kurt A. Tjaden | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 31,011 | 46.62 | 446,869 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 41,296 | 165,184 | 330,368 | ||||||||||||||||||||||
Annual Incentive Plan | 129,960 | 342,000 | 632,700 | ||||||||||||||||||||||
Jeffrey D. Lorenger | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 46,050 | 46.62 | 663,581 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 61,323 | 245,291 | 490,582 | ||||||||||||||||||||||
Annual Incentive Plan | 171,000 | 450,000 | 832,500 | ||||||||||||||||||||||
Vincent P. Berger | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 20,533 | 46.62 | 295,881 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 27,344 | 109,375 | 218,750 | ||||||||||||||||||||||
Annual Incentive Plan | 109,725 | 288,750 | 534,888 | ||||||||||||||||||||||
Jerald K. Dittmer | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 46,176 | 46.62 | 665,396 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 61,491 | 245,965 | 491,930 | ||||||||||||||||||||||
Annual Incentive Plan | 143,341 | 377,213 | 697,844 |
Name | Option Awards | |||
Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable (1) | Option Exercise Price ($) | Option Expiration Date | |
Stan A. Askren | 226,909 | 23.99 | 2/17/20 | |
140,842 | 31.98 | 2/16/21 | ||
218,364 | 25.46 | 2/15/22 | ||
166,166 | 31.79 | 2/13/23 | ||
167,791 | 34.78 | 2/12/24 | ||
107,908 | 51.54 | 2/18/25 | ||
262,883 | 32.03 | 2/17/26 | ||
166,297 | 46.62 | 2/15/27 | ||
Marshall H. Bridges | 2,500 | 10.36 | 2/23/19 | |
3,599 | 31.98 | 2/16/21 | ||
3,500 | 31.98 | 2/16/21 | ||
5,860 | 25.46 | 2/15/22 | ||
4,416 | 31.79 | 2/13/23 | ||
5,220 | 34.78 | 2/12/24 | ||
4,217 | 51.54 | 2/18/25 | ||
10,223 | 32.03 | 2/17/26 | ||
27,104 | 46.62 | 2/15/27 | ||
Kurt A. Tjaden | 48,000 | 23.99 | 2/17/20 | |
30,412 | 31.98 | 2/16/21 | ||
47,151 | 25.46 | 2/15/22 | ||
35,709 | 31.79 | 2/13/23 | ||
31,289 | 34.78 | 2/12/24 | ||
20,219 | 51.54 | 2/18/25 | ||
49,022 | 32.03 | 2/17/26 | ||
31,011 | 46.62 | 2/15/27 | ||
Jeffrey D. Lorenger | 12,182 | 23.99 | 2/17/20 | |
26,725 | 31.98 | 2/16/21 | ||
44,067 | 25.46 | 2/15/22 | ||
58,540 | 31.79 | 2/13/23 | ||
39,617 | 34.78 | 2/12/24 | ||
25,897 | 51.54 | 2/18/25 | ||
72,102 | 32.03 | 2/17/26 | ||
46,050 | 46.62 | 2/15/27 | ||
Vincent P. Berger | 8,739 | 23.99 | 2/17/20 | |
3,831 | 31.98 | 2/16/21 | ||
3,500 | 31.98 | 2/16/21 | ||
5,996 | 25.46 | 2/15/22 | ||
4,628 | 31.79 | 2/13/23 | ||
4,084 | 34.78 | 2/12/24 | ||
4,965 | 51.54 | 2/18/25 | ||
11,574 | 32.03 | 2/17/26 | ||
6,594 | 44.04 | 5/10/26 | ||
20,533 | 46.62 | 2/15/27 |
Name | Option Awards | ||||||
Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable (1) | Option Exercise Price ($) (2) | Option Expiration Date | ||||
Stan A. Askren | 40,712 | 58.06 | 2/15/16 | ||||
58,676 | 48.66 | 2/14/17 | |||||
112,644 | 10.36 | 2/23/19 | |||||
226,909 | 23.99 | 2/17/20 | |||||
140,842 | 31.98 | 2/16/21 | |||||
218,364 | 25.46 | 2/15/22 | |||||
166,166 | 31.79 | 2/13/23 | |||||
167,791 | 34.78 | 2/12/24 | |||||
107,908 | 51.54 | 2/18/25 | |||||
Kurt A. Tjaden | 48,000 | 23.99 | 2/17/20 | ||||
30,412 | 31.98 | 2/16/21 | |||||
47,151 | 25.46 | 2/15/22 | |||||
35,709 | 31.79 | 2/13/23 | |||||
31,289 | 34.78 | 2/12/24 | |||||
20,219 | 51.54 | 2/18/25 | |||||
Bradley D. Determan | 8,320 | 58.06 | 2/15/16 | ||||
48,092 | 25.46 | 2/15/22 | |||||
36,246 | 31.79 | 2/13/23 | |||||
31,759 | 34.78 | 2/12/24 | |||||
20,523 | 51.54 | 2/18/25 | |||||
Jerald K. Dittmer | 7,125 | 58.06 | 2/15/16 | ||||
10,463 | 48.66 | 2/14/17 | |||||
88,000 | 23.99 | 2/17/20 | |||||
33,950 | 31.98 | 2/16/21 | |||||
53,143 | 25.46 | 2/15/22 | |||||
39,956 | 31.79 | 2/13/23 | |||||
41,042 | 34.78 | 2/12/24 | |||||
26,522 | 51.54 | 2/18/25 | |||||
Jeffrey D. Lorenger | 2,957 | 58.06 | 2/15/16 | ||||
6,483 | 48.66 | 2/14/17 | |||||
42,182 | 23.99 | 2/17/20 | |||||
26,725 | 31.98 | 2/16/21 | |||||
44,067 | 25.46 | 2/15/22 | |||||
58,540 | 31.79 | 2/13/23 | |||||
39,617 | 34.78 | 2/12/24 | |||||
25,897 | 51.54 | 2/18/25 |
Jerald K. Dittmer | 25,750 | 31.98 | 2/16/21 | |
53,143 | 25.46 | 2/15/22 | ||
39,956 | 31.79 | 2/13/23 | ||
41,042 | 34.78 | 2/12/24 | ||
26,522 | 51.54 | 2/18/25 | ||
73,419 | 32.03 | 2/17/26 | ||
46,176 | 46.62 | 2/15/27 |
(1) |
Option Awards | ||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) (1) | ||
Stan A. Askren | 63,434 | 1,250,620 | ||
Kurt A. Tjaden | 12,931 | 517,049 | ||
Bradley D. Determan | 42,747 | 671,719 | ||
Jerald K. Dittmer | — | — | ||
Jeffrey D. Lorenger | — | — |
Option Awards | ||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) (1) | ||
Stan A. Askren | 112,644 | 3,250,418 | ||
Marshall H. Bridges | — | — | ||
Kurt A. Tjaden | — | — | ||
Jeffrey D. Lorenger | — | — | ||
Vincent P. Berger | — | — | ||
Jerald K. Dittmer | — | — |
Name | Date of Exercise | Number of Shares Acquired on Exercise (#) | Option Exercise Price ($/Sh) | Transaction Type | Sale or Closing Price on Date of Exercise ($/Sh) (1) | Value Realized on Exercise ($) | ||||
Stan A. Askren | 3/20/2017 | 2,764 | 10.36 | Exercise and Sell | 46.51 | 99,919 | ||||
3/24/2017 | 3,100 | 10.36 | Exercise and Sell | 46.01 | 110,515 | |||||
3/31/2017 | 5,400 | 10.36 | Exercise and Sell | 46.00 | 192,456 | |||||
4/17/2017 | 11,264 | 10.36 | Exercise and Sell | 46.01 | 401,562 | |||||
6/2/2017 | 11,264 | 10.36 | Exercise and Sell | 46.01 | 401,562 | |||||
8/31/2017 | 12,000 | 10.36 | Exercise and Sell | 36.44 | 312,960 | |||||
9/20/2017 | 12,000 | 10.36 | Exercise and Sell | 37.78 | 329,040 | |||||
10/17/2017 | 12,000 | 10.36 | Exercise and Sell | 42.42 | 384,720 | |||||
12/1/2017 | 4,762 | 10.36 | Sell to Cover | 35.21 | 118,336 | |||||
12/04/2017 | 4,762 | 10.36 | Sell to Cover | 34.67 | 115,764 | |||||
12/05/2017 | 4,762 | 10.36 | Sell to Cover | 33.79 | 111,574 | |||||
12/06/2017 | 4,762 | 10.36 | Sell to Cover | 33.50 | 110,193 | |||||
12/7/2017 | 4,762 | 10.36 | Sell to Cover | 33.55 | 110,431 | |||||
12/8/2017 | 4,762 | 10.36 | Sell to Cover | 33.68 | 111,050 | |||||
12/11/2017 | 4,762 | 10.36 | Sell to Cover | 33.66 | 110,955 | |||||
12/12/2017 | 4,762 | 10.36 | Sell to Cover | 34.09 | 113,002 | |||||
12/13/2017 | 4,756 | 10.36 | Sell to Cover | 34.83 | 116,379 |
Name | Date of Exercise | Number of Shares Acquired on Exercise (#) | Option Exercise Price ($/Share) | Sold or Retained Shares | Sale or Closing Price on Date of Exercise ($/Share) | Value Realized on Exercise ($) |
Stan A. Askren | 2/24/2015 | 63,434 | 31.69 | Sold | 51.41 | 1,250,620 |
Kurt A. Tjaden | 3/5/2015 | 12,931 | 10.36 | Sold | 50.35 | 517,049 |
Bradley D. Determan | 2/17/2015 | 11,876 | 48.66 | Sold | 52.75 | 48,559 |
2/17/2015 | 23,871 | 31.98 | Sold | 52.21 | 483,020 | |
2/20/2015 | 7,000 | 31.98 | Sold | 52.00 | 140,140 |
Name | Executive Contributions in Last FY ($) (1) | Aggregate Earnings in Last FY ($) (2) | Aggregate Balance at Last FYE ($) (3) | |||
Stan A. Askren | 326,586 | (1,022,908) | 2,803,318 | |||
Marshall H. Bridges | 0 | 0 | 0 | |||
Kurt A. Tjaden | 0 | 0 | 0 | |||
Jeffrey D. Lorenger | 0 | 0 | 0 | |||
Vincent P. Berger | 0 | 0 | 0 | |||
Jerald K. Dittmer | 0 | 0 | 0 |
Name | Executive Contributions in Last FY ($) (1) | Aggregate Earnings in Last FY ($) (2) | Aggregate Balance at Last FYE ($) (3) | |||
Stan A. Askren | 204,858 | (634,219 | ) | 1,904,928 | ||
Kurt A. Tjaden | 0 | 0 | 0 | |||
Bradley D. Determan | 258,848 | 14,668 | 1,339,922 | |||
Jerald K. Dittmer | 0 | 0 | — | |||
Jeffrey D. Lorenger | 0 | 0 | — |
(1) | The amount of Mr. Askren's contribution before taxes, |
(2) | The reported dollar value is the sum of (i) share price appreciation (or depreciation) in the account balance during |
(3) | The reported dollar value is calculated by multiplying |
Members by Geography: | |
The Americas | 7,600 |
Asia Pacific | 1,400 |
Total | 9,000 |
1. | Selected October 1, 2017 as the |
2. | Excluded approximately 400 members who are employed in India and 20 members who are employed in Taiwan from the determination of the “median member,” given the small number of |
3. | Annualized the compensation of members hired in 2017. |
4. | Applied an exchange rate of 1 Hong Kong Dollar to .1281 U.S. Dollars when calculating member compensation for our Hong Kong location. For members in China, we applied an exchange rate of 1 Chinese Renminbi to .1502 U.S. Dollars. Both exchange rates are as of September 30, 2017. |
5. | Selected base salary or wages plus overtime pay for the nine-month period ending September 30, 2017 to measure compensation of the Corporation's members. |
6. | For the annual total compensation of the “median member,” we identified and calculated the elements of the member’s compensation for 2017 in accordance with the requirements of Item 402(c)(2)(x) of Regulation S-K, resulting in annual total compensation of $78,272. The difference between the median member’s wages with overtime pay and the member’s annual total compensation represents an additional three months of wages with overtime pay and the estimated value of the member’s health care benefits, retirement-related benefits, and disability insurance (estimated for the member and the member’s eligible dependents at $23,961). |
7. | For the annual total compensation of our CEO, we used the amount reported in the |
Name | Cash Severance Under CIC Agreement ($) (1) | Additional Benefits Under CIC Agreement ($) (2) | Annual Incentive Plan Acceleration ($) (3) | Long-Term Performance Plan Acceleration ($) (4) | Stock Options Acceleration ($) (5) | Excise Tax Gross-Up Under CIC Agreement ($) (6) | Total ($) |
Stan A. Askren | 8,957,496 | 51,946 | 192,752 | 762,953 | 2,355,183 | 0 | 12,320,330 |
Marshall H. Bridges | 1,240,023 | 37,183 | 41,580 | 98,246 | 86,642 | 0 | 1,503,674 |
Kurt A. Tjaden | 1,714,515 | 53,822 | 397,141 | 142,459 | 439,189 | 0 | 2,747,126 |
Jeffrey D. Lorenger | 2,299,460 | 48,380 | 160,200 | 202,698 | 621,696 | 0 | 3,332,434 |
Vincent P. Berger | 1,075,322 | 52,046 | 221,760 | 100,306 | 91,172 | 0 | 1,540,606 |
Jerald K. Dittmer | 2,683,743 | 41,620 | 57,336 | 205,846 | 635,709 | 0 | 3,624,254 |
(1) | Amounts in this column include the following: (i) an amount equal to two times (three times for Mr. Askren) the sum of (a) the executive's annual base salary and (b) the average of the executive's annual incentive compensation awards for the prior two years; (ii) an incremental bonus payment equal to the difference of the executive's average prior two years annual incentive awards and the current year annual incentive award payable; (iii) an amount equal to the value of the cost of health and dental coverage for an additional six months from the date of termination; (iv) an amount equal to the value of the "gross-up" for any federal, state and local taxes applicable to the value of six months of health and dental coverage continuation; and (v) an amount equal to the value of 24 months of continued participation in the Corporation's accidental death and travel accident insurance plan and disability plans. The amount of cash severance payable to Mr. Askren was reduced by $902,869, so no portion of the executive's benefit constitutes an excess parachute payment subject to the excise tax as the 110 percent hurdle was not exceeded. |
(2) | Represents the value of the following benefits provided following termination of employment under the CIC Agreements for each Named Executive Officer: medical and dental benefits for 18 months, group life insurance benefits for 24 months, and the value of the Corporation’s required contributions to the Retirement Plan. |
(3) | Represents the value of the annual incentive award earned for 2017, which the Named Executive Officer would be entitled to receive under the Annual Incentive Plan if he remained employed by the Corporation on the last day of 2017. |
(4) | Represents the estimated 2015-2017 Plan, 2016-2018 Plan, and 2017-2019 Plan award payable. This amount has been based on the following economic profit assumptions ("Economic Profit Assumptions"). For the 2015-2017 Plan: (i) 76% of the targeted amount for 2015; (ii) 0% of the targeted amount for 2016 ; and (iii) 0% of the targeted amount for 2017. Amount payable accounts for employment during the entire 36-month performance period. No amount would be payable until the first quarter of 2018. For the 2016-2018 Plan: (i) 90% of the targeted amount for 2016; (ii) 0% of the targeted amount for 2017; and (iii) 100% of the targeted amount for 2018. The amount payable based on these assumptions has been prorated to account for employment during 24 months of the 36-month performance period. No amount would be payable until the first quarter of 2019. For the 2017-2019 Plan: (i) 0% of the targeted amount for 2017; (ii) 100% of the targeted amount for 2018; and (iii) 100% of the targeted amount for 2019. Amount payable has been prorated to account for employment during 12 months of the 36-month performance period. No amount would be payable until the first quarter of 2020. Amounts included for the Long-Term Performance Plan are estimates and are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Due to the number of factors, the actual amounts we pay or distribute under the Long-Term Performance Plan may differ materially. Factors affecting these amounts include the financial performance of the Corporation during 2017, 2018 and 2019 and the achievement of economic profit goals. |
(5) | Represents the value of accelerating the vesting of stock options not otherwise vested in accordance with the Stock Plan. These options will remain exercisable until the expiration date established at the time of award. |
(6) | Represents the payment to "gross-up" the executive's compensation for any excise tax and for any federal, state and local taxes applicable to the excise tax "gross-up." Messrs. Bridges' and Berger's CIC agreements do not include excise tax gross-up provisions, therefore they are not eligible for excise tax "gross-up" payments. |
Name | Cash Payment Under CIC Agreement ($) | Total Value of Benefits Under CIC Agreement ($) | Annual Incentive Plan Acceleration ($) (1) | Long-Term Performance Plan Acceleration ($) (2) | Stock Option Acceleration ($) (3) | Total ($) |
Stan A. Askren | 0 | 0 | 2,058,840 | 762,953 | 2,355,183 | 5,176,976 |
Marshall H. Bridges | 0 | 0 | 171,200 | 98,246 | 86,642 | 356,088 |
Kurt A. Tjaden | 0 | 0 | 488,710 | 142,459 | 439,189 | 1,070,358 |
Jeffrey D. Lorenger | 0 | 0 | 449,268 | 202,698 | 621,696 | 1,273,662 |
Vincent P. Berger | 0 | 0 | 225,670 | 100,306 | 91,172 | 417,148 |
Jerald K. Dittmer | 0 | 0 | 658,940 | 205,846 | 635,709 | 1,500,495 |
(1) | Represents the higher of the value of the annual incentive award earned for 2017, or paid in respect to the three full fiscal years immediately prior to the CIC effective date. |
(2) | Represents the estimated 2015-2017 Plan, 2016-2018 Plan, and 2017-2019 Plan award payable. See Economic Profit Assumptions in footnote 4 of the table titled Value in Event of Involuntary Termination or Voluntary Termination for Good Reason Following a Change in Control on Page 36 of this Proxy Statement. |
(3) | Represents the value of accelerating the vesting of stock options not otherwise vested in accordance with the Stock Plans. These options will remain exercisable until the expiration date established at the time of award. |
Name | Cash Severance Under CIC Agreement ($) (1) | Additional Benefits Under CIC Agreement ($) (2) | Incentive Plan Acceleration ($) (3) | Performance Plan Acceleration ($) (4) | Stock Options Acceleration ($) (5) | Excise Tax Gross-Up Under CIC Agreement ($) (6) | Total ($) | |||||||
Stan Askren | 8,349,310 | 52,739 | 1,471,025 | 1,583,987 | 3,238,960 | 6,969,643 | 21,665,663 | |||||||
Kurt Tjaden | 1,728,499 | 52,739 | 353,239 | 323,538 | 692,328 | 0 | 3,150,343 | |||||||
Brad Determan | 2,086,837 | 45,021 | 231,513 | 384,367 | 705,197 | 0 | 3,452,935 | |||||||
Jerry Dittmer | 1,781,952 | 52,652 | 482,414 | 346,245 | 786,462 | 0 | 3,449,725 | |||||||
Jeff Lorenger | 1,376,661 | 49,831 | 449,268 | 318,742 | 767,785 | 0 | 2,962,287 |
Name | Life Insurance Proceeds ($) (1) | Retirement & Profit Sharing (2) | Annual Incentive Plan Acceleration ($) (3) | Long-Term Performance Plan Acceleration ($) (4) | Stock Options Acceleration ($) (5) | Total Value in Event of Death ($) | Total Value in Event of Disability ($) | Total Value in Event of Retirement ($) |
Stan A. Askren | 150,000 | 23,311 | 192,752 | 762,953 | 2,355,183 | 3,484,199 | 3,334,199 | 3,334,199 |
Marshall H. Bridges | 150,000 | 21,867 | 41,580 | 98,246 | 86,642 | 398,335 | 248,335 | N/A |
Kurt A. Tjaden | 150,000 | 25,188 | 397,141 | 142,459 | 439,189 | 1,153,977 | 1,003,977 | N/A |
Jeffrey D. Lorenger | 150,000 | 19,746 | 160,200 | 202,698 | 621,696 | 1,154,340 | 1,004,340 | N/A |
Vincent P. Berger | 150,000 | 23,412 | 221,760 | 100,306 | 91,172 | 586,650 | 436,650 | N/A |
Jerald K. Dittmer | 150,000 | 23,701 | 57,336 | 205,846 | 635,709 | 1,072,592 | 922,592 | 922,592 |
(1) |
(2) | Represents |
(3) | Represents the value of the annual incentive award earned for |
(4) | Represents the estimated 2015-2017 Plan, 2016-2018 Plan, and 2017-2019 Plan award payable. See Economic Profit Assumptions in footnote 4 of the table titled Value in Event of Involuntary Termination or Voluntary Termination for Good Reason Following a Change in Control |
(5) | Represents the value of accelerating the vesting of stock options not otherwise vested in accordance with the Stock |
Name | Cash Payment Under CIC Agreement ($) | Total Value of Benefits Under CIC Agreement ($) | Incentive Plan Acceleration ($) (1) | Performance Plan Acceleration ($) (2) | Stock Option Acceleration ($) (3) | Total ($) | ||||||
Stan A. Askren | 0 | 0 | 1,471,025 | 1,583,987 | 3,238,960 | 6,293,972 | ||||||
Kurt A. Tjaden | 0 | 0 | 353,239 | 323,538 | 692,328 | 1,369,105 | ||||||
Bradley D. Determan | 0 | 0 | 231,513 | 384,367 | 705,197 | 1,321,077 | ||||||
Jerald K. Dittmer | 0 | 0 | 482,414 | 346,245 | 786,462 | 1,615,121 | ||||||
Jeffrey D. Lorenger | 0 | 0 | 449,268 | 318,742 | 767,785 | 1,535,795 |
Name | Life Insurance Proceeds ($) (1) | Retirement & Profit Sharing (2) | Incentive Plan Acceleration ($) (3) | Performance Plan Acceleration ($) (4) | Stock Options Acceleration ($) (5) | Total ($) |
Stan A. Askren | 150,000 | 25,528 | 1,471,025 | 1,583,987 | 3,238,960 | 6,469,500 |
Kurt A. Tjaden | 150,000 | 25,528 | 353,239 | 323,538 | 692,328 | 1,544,633 |
Bradley D. Determan | 150,000 | 27,969 | 231,513 | 384,367 | 705,197 | 1,499,046 |
Jerald K. Dittmer | 150,000 | 26,033 | 482,414 | 346,245 | 786,462 | 1,791,154 |
Jeffrey D. Lorenger | 150,000 | 22,620 | 449,268 | 318,742 | 767,785 | 1,708,415 |
Name | Retirement & Profit Sharing (1) | Incentive Plan Acceleration ($) (2) | Performance Plan Acceleration ($) (3) | Stock Options Acceleration ($) (4) | Total ($) | |||||
Stan A. Askren | 25,528 | 1,471,025 | 1,583,987 | 3,238,960 | 6,319,500 | |||||
Kurt A. Tjaden | 25,528 | 353,239 | 323,538 | 692,328 | 1,394,633 | |||||
Bradley D. Determan | 27,969 | 231,513 | 384,367 | 705,197 | 1,349,046 | |||||
Jerald K. Dittmer | 26,033 | 482,414 | 346,245 | 786,462 | 1,641,154 | |||||
Jeffrey D. Lorenger | 22,620 | 449,268 | 318,742 | 767,785 | 1,558,415 |
Name | Retirement & Profit Sharing (1) | Incentive Plan Acceleration ($) (2) | Performance Plan Acceleration ($) (3) | Stock Options Acceleration ($) (4) | Total ($) | |||||
Stan A. Askren | 25,528 | 1,471,025 | 1,583,987 | 3,238,960 | 6,319,500 | |||||
Jerald K. Dittmer | 26,033 | 482,414 | 346,245 | 786,462 | 1,641,154 |
THE BOARD RECOMMENDS A VOTE "FOR" ADOPTION OF THE RESOLUTION APPROVING THE COMPENSATION OF THE NAMED EXECUTIVE OFFICERS AS DISCLOSED IN THIS PROXY STATEMENT. |
Name | Fees Earned or Paid in Cash ($) (1) | Stock Awards ($) (2) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) (3) | All Other Compensation ($) (4) | Total ($) | |||||
Mary A. Bell | 72,500 | 95,000 | — | 1,572 | 169,072 | |||||
Miguel M. Calado | 65,250 | 95,000 | — | 1,572 | 161,822 | |||||
Cheryl A. Francis | 75,750 | 95,000 | — | 1,572 | 172,322 | |||||
James R. Jenkins | 73,250 | 95,000 | 3,887 | 1,572 | 173,709 | |||||
Dennis J. Martin | 71,625 | 95,000 | — | 1,572 | 168,197 | |||||
Larry B. Porcellato | 70,625 | 95,000 | 291 | 1,572 | 167,488 | |||||
Abbie J. Smith | 81,125 | 95,000 | — | 1,572 | 177,697 | |||||
Brian E. Stern | 66,250 | 95,000 | — | 1,572 | 162,822 | |||||
Ronald V. Waters, III | 69,250 | 95,000 | 2,475 | 1,572 | 168,297 |
Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class | Amount and Nature of Beneficial Ownership | Percent of Class | ||
State Farm Insurance Companies (1) One State Farm Plaza Bloomington, Illinois 61710 | 7,384,343 | (2) | 16.6% | 7,384,089 | (2) | 17.0% |
BlackRock, Inc. (3) 40 East 52nd Street New York, New York 10022 | 3,753,489 | (4) | 8.5% | |||
BlackRock, Inc. (3) 55 East 52nd Street New York, New York 10055 | 4,445,264 | (4) | 10.2% | |||
The Vanguard Group, Inc. (5) 100 Vanguard Boulevard Malvern, PA 19355 | 3,025,518 | (6) | 6.8% | 3,757,450 | (6) | 8.6% |
Fidelity Management & Research Company 245 Summer Street Boston, Massachusetts 02210 | 2,781,617 | (7) | 6.3% |
(1) | State Farm Insurance Companies consists of the following entities: State Farm Mutual Automobile Insurance Company; State Farm Fire and Casualty Company; State Farm Investment Management Corp.; State Farm Insurance Companies Employee Retirement Trust; State Farm Mutual Fund Trust; Employees; State Farm Life Insurance Company; State Farm |
(2) | Information is based on a Schedule |
(3) | The following subsidiaries of BlackRock, Inc. hold the shares of Common Stock noted: BlackRock Institutional Trust Company, N.A.; BlackRock Fund Advisors; BlackRock Asset Management Canada Limited; BlackRock Asset Management Schweiz AG; BlackRock Advisors, LLC; BlackRock Investment Management, LLC; BlackRock Financial Management, Inc.; BlackRock Asset Management Ireland Limited; BlackRock Investment Management (Australia) Limited; Limited; and BlackRock (Netherlands) B.V. |
(4) | Information is based on a Schedule 13G/A filed January |
(5) | The following subsidiaries of The Vanguard Group, Inc. hold the shares of Common Stock noted: Vanguard Fiduciary Trust Company and Vanguard Investments Australia, Ltd. |
(6) | Information is based on a Schedule 87,331 shares. |
Name of Beneficial Owner | Common Stock (1) | Common Stock Units (2) | Stock Options Exercisable as of the Record Date or Within 60 Days Thereof | Total Stock and Stock-Based Holdings | Percent of Class (3) | Common Stock (1) | Common Stock Units (2) | Stock Options Exercisable as of the Record Date or Within 60 Days Thereof | Total Stock and Stock-Based Holdings | Percent of Class (3) |
Stan A. Askren | 143,884 | 62,596 | 757,435 | 963,915 | 2.2% | 159,879 | 81,930 | 920,072 | 1,161,881 | 2.7% |
Mary A. Bell | 9,245 | 29,371 | 0 | 38,616 | * | 16,996 | 30,931 | — | 47,927 | * |
Miguel M. Calado | 49,779 | 0 | 49,779 | * | 50,207 | — | — | 50,207 | * | |
Cheryl A. Francis | 54,766 | 0 | 54,766 | * | 60,746 | — | — | 60,746 | * | |
James R. Jenkins | 0 | 38,471 | 0 | 38,471 | * | |||||
John R. Hartnett | 5,747 | — | — | 5,747 | * | |||||
Mary K.W. Jones | 0 | — | * | 5,512 | 2,396 | — | 7,908 | * | ||
Dennis J. Martin | 9,133 | 21,961 | 0 | 31,094 | * | |||||
Larry B. Porcellato | 17,929 | 18,329 | 0 | 36,258 | * | 17,477 | 19,303 | — | 36,780 | * |
Abbie J. Smith | 2,505 | 44,616 | 0 | 47,121 | * | 6,990 | 50,740 | — | 57,730 | * |
Brian E. Stern | 40,288 | 0 | 40,288 | * | 44,836 | — | — | 44,836 | * | |
Ronald V. Waters, III | 24,646 | 14,207 | 0 | 38,853 | * | 19,193 | 14,961 | — | 34,154 | * |
Bradley D. Determan | 31,581 | 3,283 | 48,092 | 82,956 | * | |||||
Marshall H. Bridges | 9,783 | — | 25,095 | 34,878 | * | |||||
Kurt A. Tjaden | 40,805 | — | 192,561 | 233,366 | * | |||||
Jeffrey D. Lorenger | 28,283 | — | 181,131 | 209,414 | * | |||||
Vincent P. Berger | 7,643 | — | 30,778 | 38,421 | * | |||||
Jerald K. Dittmer | 28,496 | 0 | 185,556 | 214,052 | * | 33,809 | — | 306,008 | 339,817 | * |
Jeffrey D. Lorenger | 25,256 | 0 | 119,457 | 144,713 | * | |||||
Kurt A. Tjaden | 36,619 | 0 | 125,563 | 162,182 | * | |||||
All Directors and executive officers as a group – (20 persons) | 562,989 | 232,834 | 1,412,678 | 2,208,501 | 5.0% | |||||
All Directors and executive officers as a group – (17 persons) | 509,679 | 200,261 | 1,397,974 | 2,107,914 | 4.9% |
(1) | Includes restricted shares held by executive officers over which they have voting power but not investment power, shares held directly or in joint tenancy, shares held in trust, by broker, bank or nominee or other indirect means and over which the individual or member of the group has sole voting or shared voting and/or investment power. Each individual or member of the group has sole voting and/or investment power with respect to the shares shown in the table above, except Mr. Askren's spouse shares voting and investment power with respect to 7,588 of the |
(2) | Indicates the nonvoting share units credited to the account of the named individual or members of the group, as applicable, under either the Deferred Plan or the Directors Deferred Plan. For additional information on the Deferred Plan, see " |
(3) | * less than |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (b) (3) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (b) (3) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) | ||||||
Equity Compensation Plans approved by security holders | 3,728,177 (1) | 30.79 | 4,229,228 (4) | 3,897,620 (1) | 34.63 | 4,417,075 (4) | ||||||
Equity Compensation Plans not approved by security holders | 259,283 (2) | –– | 620,688 (5) | 242,322 (2) | –– | 606,557 (5) | ||||||
Total | 3,987,460 | 30.79 | 4,849,916 | 4,139,942 | 34.63 | 5,023,632 |
(1) | Includes: (i) shares to be issued upon the exercise of outstanding stock options granted under the Stock Plan – |
(2) | Includes the nonvoting share units credited to the account of individual executive officers or Directors under either the Deferred Plan – |
(3) | This column does not take into account any of the RSUs, Long-Term Performance Plan awards, Annual Incentive Plan awards or nonvoting share units discussed in Notes 1 and 2 above. |
(4) | Includes shares available for issuance under the Stock Plan – |
(5) | Includes nonvoting share units available for issuance under the Deferred Plan – |