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MEETING INFORMATION  DATE AND TIME: Monday, May 6, 2024 10:00 a.m. Eastern Time  LOCATION: Courtyard Baltimore Downtown/Inner Harbor 1000 Aliceanna Street Baltimore, Maryland 21202  RECORD DATE: Holders of record of our Common Stock or Class A Common Stock as of March 8, 2024 are entitled to notice of, and to vote at, the meeting | ITEMS OF |
1. | Election of Directors: |
Holders of Class A Common Stock to elect six directors. | |
Holders of Common Stock to elect | |
2. | Advisory Vote on Executive Compensation. 3.Ratification of the appointment of Grant Thornton LLP as our independent |
Shareholders may also transact such other business as may properly come before the annual meeting or any adjournments. As a stockholder, your vote is very important, and the company’s board of directors strongly encourages you to exercise your right to vote. BY ORDER OF THE BOARD OF DIRECTORS  Jenny Hill Parker Senior Vice President, Finance, and Corporate Secretary March 27, 2024 Atlanta, Georgia Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to be held on May 6, 2024. The proxy statement and Form 10-K for 2023 are available at www.proxyvote.com and on Havertys’ website at havertys.com under “Investor Relations” then “Reports & Financials” and “SEC Filings.” |
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*You will need the 11-digit control number from your proxy card, |
| Our Board of Directors | 1 | |
| Proposal 1. Election of Directors | ||
3 5 | ||
| 7 | ||
| 7 | ||
| Board of Directors Oversight Roles | 9 | |
| 10 | ||
| 13 | ||
| Compensation Discussion and | ||
| Role of the NCG Committee | 16 | |
| 17 | ||
| Executive Compensation Components | 20 | |
| Compensation Committee | 25 | |
| Executive Compensation | ||
| 26 | ||
| 28 | ||
| 29 | ||
| 31 | ||
| 32 | ||
| 33 | ||
| 33 | ||
| 36 | ||
| 36 | ||
| Proposal 2. Advisory Vote on Executive Compensation | 42 | |
| Equity Compensation Plan Information | 43 | |
| 44 | ||
| Registered Public Accounting Firm | 47 | |
| Ownership by our Principal Stockholders | 48 | |
| Ownership by our Directors and Management | 50 | |
| Information about our Annual Meeting | 51 | |
| for 2025 Meeting | 53 | |
| 54 | ||
| 54 | ||
| GAAP to Non-GAAP Reconciliation | Appendix A |
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 |  | Holders of Class A common stock are being asked to elect six directors for a one-year term. Holders of common stock are being asked to elect three directors for a one-year term. | ||||||||||
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| Nominee Attributes and Skills |
 •High integrity •Strategic and innovative thinking •Strong leadership skills •A proven record of success •Financial acumen •Excellent communication skills •Knowledge of corporate governance requirements and practices •Able to identify and manage risks •Strong collaboration, discussion, and decision-making skills |   5 out of 9 current or former CEO  5 out of 9 Other public board experience  7 out of 9 finance experience |   8 out of 9 |  |  | |  |  |
 | 7 out of 9 Consumer-focused experience  5 out of 9 Marketing/ Brand Building experience |  7 out of 9 Sales |
Proposal 1: Nominees for Election by Holders of Class A Common Stock |
  | L. ALLISON DUKES | Independent Director since |
Principal Occupation: Experience:        | ||
 | RAWSON HAVERTY JR. Age 67 | Non-Independent Non-Management Director since 2023 Management Director from 1992-2023 |
 | Principal Occupation: Retired, former Senior Vice President, Real Estate and Development of Havertys Experience:      | |
 | | |
 | NATALIE B. MORHOUS Age 40 | Ms. Morhous is standing for election for the first time. |
Principal Occupation: CEO, RaceTrac Inc., since January 2024. President from February 2019 until January 2024. Affiliations: Board of Directors of RaceTrac, Inc., Board of Directors of the National Association of Convenience Stores, Advisory Board of the Emory University Center for Ethics, Young President’s Organization, and Leadership Georgia‑2023. Experience:   | ||
| Proposal 1: Nominees for Election by Holders of Class A Common Stock |
  | VICKI R. PALMER | Independent Director since 2001 |
Principal Occupation: Retired,former Executive Vice President, Financial Services and Administration for Other Public Directorships:First Horizon National Affiliations: Finance Chair of the Experience:     | ||
  | DEREK G. SCHILLER | Independent Director since |
Principal Occupation: President and Chief Executive Officer of the Metro Atlanta Chamber of Experience:      | ||
  | AL TRUJILLO | Independent Director since 2003 |
Principal Occupation: President and Chief Operating Officer of the Georgia Tech Foundation since 2013. Investment Funds Advisor from 2007 to 2013. Former President and Chief Executive Officer of Recall Corporation, a global information management company Other Public Directorships: Former director of SCANA Corporation, which was acquired by Dominion Energy in 2018. Affiliations: Member of the Board of Trustees of Marist School. Experience:      | ||
| Proposal 1: Nominees for Election By Holders of Common Stock |
 | MICHAEL R. COTE Age 62 | Independent Director since 2022 |
Principal Occupation: Retired, former CEO of Secureworks from 2002 to 2022 and Other Public Directorships: Secureworks from 2016 to 2021. Affiliations: Executive Chairman of the Board of Directors of Nitel, Inc., Director of Palmetto Technology Group, Board of Trustees of Children’s Healthcare of Atlanta, and the Board of Trustees at Marist School. Experience:      | ||
 | G. THOMAS HOUGH Age 69 | Independent Director since 2018 Lead Director since 2021 |
Principal Occupation: Retired, Americas Vice Chair of Ernst & Young LLP (“EY”). Vice Chair of Assurance Services of EY from 2009 to 2014. Other Public Directorships: Equifax Inc., Federated Hermes Fund Family, and former director of Publix Super Markets, Inc. from 2015 until 2020. Affiliations: President’s Cabinet of the University of Alabama. Experience:  | ||
 | CLARENCE H. SMITH Age 73 | Management Director since 1989 Chairman of the Board since 2012 |
Principal Occupation: Chief Executive Officer of Havertys since 2003. President and Chief Executive Officer from 2003 until March 2021. Over 48 years with Havertys in various positions. Other Public Directorships: Oxford Industries, Inc. Affiliations: Executive Committee of Metro Atlanta Chamber of Commerce, and member of the Board of Trustees of Marist School. Experience:     | ||
Clarence H. Smith and Rawson Haverty, Jr. are first | ||
| Retiring Director – Not Standing For Election |
  | MYLLE H. MANGUM | Independent Director since |
 | Principal Occupation: | |
Experience:   | ||
 | ||
| Dual Class Stock Structure |
| Board Leadership |
 | ||||
 |  |  | ||
 | Attendance | |||
| Committees of the Board |
| Principal Functions | |
Audit Committee Meetings: 4 Al Trujillo – Chair Michael R. Cote G. Thomas Hough Vicki R. Palmer Each member has been designated as “an audit committee financial expert” as defined by the Securities and Exchange Commission (“SEC”) and meets the independence requirements of the New York Stock Exchange (“NYSE”), SEC, and our Governance Guidelines as well as the enhanced standards for Audit Committee members in Section 10A-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). | ➢Provides oversight of the systems and procedures relating to the financial statements, financial reporting process, systems of internal accounting and financial controls. ➢Reviews and discusses with management the company’s risk assessment framework and management policies including cybersecurity and the framework with respect to significant financial and enterprise risk exposures. ➢Monitors the qualifications, independence and performance of the company’s internal audit function and independent auditor and meets after each quarterly meeting with management, the internal audit team, and the independent auditor in separate executive sessions. ➢Committee charter on Havertys’ website at https://ir.havertys.com/corporate-governance-information/corporate-governance-documents |
NCG Committee Meetings: 2 L. Allison Dukes – Chair G. Thomas Hough Mylle H. Mangum Derek G. Schiller Al Trujillo Each member meets the independence requirements of the NYSE, SEC and our Governance Guidelines as well as the enhanced standards for Compensation and Governance Committee members in Rule 16b-3 promulgated under the Exchange Act. | ➢Translates our compensation objectives into a compensation strategy that reinforces alignment of the interests of our executives with that of our stockholders. ➢Approves and evaluates the company’s director and executive officer compensation plans, policies and programs. ➢Conducts an annual review and evaluation of the CEO’s performance in light of the company’s goals and objectives. ➢Reviews and makes recommendations for composition and structure of the board and policies relating to the recruitment of new board members and nomination and reelection of existing board members. ➢Oversees the compliance structure and programs with annual reviews of Havertys’ corporate governance documents. ➢Oversees the company’s ESG-related initiatives. ➢Reviews and approves related person transactions in accordance with board practices. ➢Committee charter on Havertys’ website at https://ir.havertys.com/corporate-governance-information/corporate-governance-documents |
Executive Committee Meetings: 0 Actions by Unanimous Consent: 1 Independent Members: G. Thomas Hough – Chair L. Allison Dukes Al Trujillo Management Member: Clarence H. Smith | ➢In accordance with our bylaws, acts with the power and authority of the board in the management of our business and affairs in the interim period between meetings of the board. ➢Generally, holds meetings to approve specific terms of financings or other transactions after these items have previously been presented to the board. ➢Committee charter on Havertys’ website at https://ir.havertys.com/corporate-governance-information/corporate-governance-documents |
| Board of Directors Oversight Roles |
Name | Fees Earned or Paid in Cash ($) | Fees Earned or Paid in Stock ($) | Total ($) | |||||||||
| Allison Dukes | $ | 25,000 | $ | 50,000 | $ | 75,000 | ||||||
| John Glover | 35,000 | 50,000 | 85,000 | |||||||||
Phil Humann(1) | — | 75,000 | 75,000 | |||||||||
| Mylle Mangum | 35,000 | 50,000 | 85,000 | |||||||||
| Vicki Palmer | 25,000 | 50,000 | 75,000 | |||||||||
| Fred Schuermann | 32,500 | 50,000 | 82,500 | |||||||||
| Al Trujillo | 35,000 | 50,000 | 85,000 | |||||||||
•Natalie B. Morhous | •Derek G. Schiller |
| Director Compensation |
| Annual Retainer | ||||
| Equity Retainer | $ | 50,000 | ||
| Cash Retainer | $ | 50,000 | ||
| Supplemental Annual Retainer | ||||
| Lead Director | $ | 12,000 | ||
| Audit Committee Chair | $ | 10,000 | ||
| NCG Committee Chair | $ | 10,000 | ||
| Annual Stock Grant (FMV) | ||||
| All Non-Employee Directors | $ | 40,000 | ||
| Annual Retainer | ||||
| Equity Retainer | $ | 95,000 | ||
| Cash Retainer | $ | 60,000 | ||
| Supplemental Annual Retainer | ||||
| Lead Director | $ | 25,000 | ||
| Audit Committee Chair | $ | 20,000 | ||
| NCG Committee Chair | $ | 15,000 | ||
| Audit Committee Member | $ | 10,000 | ||
| NCG Committee Member | $ | 5,000 | ||
| Director | Fees Earned or Paid in Cash ($) | Stock Awards ($) (1) | All Other Compensation (2) | Total ($) | ||||||||||||
| Michael R. Cote | $ | 50,000 | $ | 90,000 | $ | — | $ | 140,000 | ||||||||
| L. Allison Dukes | 56,667 | 90,000 | — | 146,667 | ||||||||||||
Rawson Haverty Jr. (2) | 33,333 | 60,000 | 103,677 | 197,010 | ||||||||||||
| C. Thomas Hough | 62,000 | 90,000 | — | 152,000 | ||||||||||||
| Vicki R. Palmer | 50,000 | 90,000 | — | 140,000 | ||||||||||||
| Derek G. Schiller | 50,000 | 90,000 | — | 140,000 | ||||||||||||
| Al Trujillo | 60,000 | 90,000 | — | 150,000 | ||||||||||||
Mylle H. Mangum (3) | 53,333 | 90,000 | — | 143,333 | ||||||||||||
| Common Stock | Class A Common Stock | |||||||||||||||||||||||
Shares Beneficially Owned (1) | Acquirable Within 60 Days (2) | Total Beneficial Ownership | Percent of Class(3) | Shares Beneficially Owned | Percent of Class(4) | |||||||||||||||||||
| Steven G. Burdette | 3,657 | 4,583 | 8,240 | * | 28,530 | 1.61 | % | |||||||||||||||||
| J. Edward Clary | 56,091 | 5,872 | 61,963 | * | — | — | ||||||||||||||||||
| L. Allison Dukes | 4,661 | — | 4,661 | * | — | — | ||||||||||||||||||
| Richard D. Gallagher | 12,730 | 4,459 | 17,189 | * | 25,000 | 1.41 | % | |||||||||||||||||
| John T. Glover | 68,108 | — | 68,108 | * | — | — | ||||||||||||||||||
| Richard B. Hare | — | — | — | * | — | — | ||||||||||||||||||
| Rawson Haverty, Jr. | 2,000 | (5) | 2,994 | 4,994 | * | 614,195 | (6)(7)(8) | 34.75 | % | |||||||||||||||
| L. Phillip Humann | 131,391 | — | 131,391 | * | — | — | ||||||||||||||||||
| Mylle H. Mangum | 42,413 | — | 42,413 | * | — | — | ||||||||||||||||||
| Vicki R. Palmer | 37,608 | — | 37,608 | * | — | — | ||||||||||||||||||
| Clarence H. Smith | 75,803 | (9)(10) | 15,965 | 91,768 | * | 692,483 | (11)(12) | 39.18 | % | |||||||||||||||
| Fred L. Schuermann | 31,724 | — | 31,724 | * | — | — | ||||||||||||||||||
| Al Trujillo | 49,307 | — | 49,307 | * | — | — | ||||||||||||||||||
Directors and Executive Officers as a group (16 persons) | 589,489 | 45,732 | 635,221 | 3.26 | % | 1,360,208 | 76.97 | % | ||||||||||||||||
| (1) |
| (2) |
| (3) | |
| Common Stock | Class A Common Stock | |||||||||||||
| Name and address of Beneficial Holder | Shares Beneficially Owned | Percent of Class(1) | Shares Beneficially Owned | Percent of Class(2) | ||||||||||
BlackRock, Inc. 55 East 52nd Street, New York, NY | 2,811,047 | (3) | 14.41 | % | — | — | ||||||||
Dimensional Fund Advisors LP 6300 Bee Cave Road, Austin, TX | 1,647,551 | (4) | 8.45 | % | — | — | ||||||||
Renaissance Technologies LLC 800 Third Avenue, New York, NY | 1,430,200 | (5) | 7.33 | % | — | — | ||||||||
The Burton Partnership, LP P.O. Box 4643, Jackson, WY | 1,228,255 | (6) | 6.30 | % | — | — | ||||||||
LSV Asset Management, 155 N. Wacker Drive, Suite 4600, Chicago, IL | 1,053,306 | (7) | 5.40 | % | — | — | ||||||||
The Vanguard Group 100 Vanguard Blvd., Malvern, PA | 996,475 | (8) | 5.11 | % | — | — | ||||||||
Royce & Associates, LLC 745 Fifth Avenue, New York, NY | 994,300 | (9) | 5.10 | % | — | — | ||||||||
Villa Clare Partners, L.P. 158 West Wesley Road, Atlanta, GA | * | * | 603,497 | (10) | 34.15 | % | ||||||||
H5, L.P. 4414 Dunmore Road, NE, Marietta, GA | * | * | 441,323 | (11) | 24.97 | % | ||||||||
Rawson Haverty, Jr. 780 Johnson Ferry Road, NE, Atlanta, GA | * | * | 155,848 | (12)(13) | 8.82 | % | ||||||||
Clarence H. Smith 780 Johnson Ferry Road, NE, Atlanta, GA | * | * | 88,986 | (14) | 5.04 | % | ||||||||
| Name | Age | Office and Year Elected to Office | ||
| Clarence H. Smith | 73 | Chief Executive Officer – 2022 | ||
| Richard B. Hare | 57 | Executive Vice President and Chief Financial Officer - 2017 | ||
| Steven G. Burdette | 62 | President – 2021; Executive Vice President, Operations 2017-2021 | ||
| J. Edward Clary | 63 | Executive Vice President and Chief Information Officer – 2015(1) | ||
| John L. Gill | 60 | Executive Vice President, Merchandising – 2019; Senior Vice President, Merchandising 2018 - 2019 |
| (1) | On March 4, 2024, Mr. Clary announced his intention to retire effective July 2024. |
| ➢ | Net sales of $862.1M, third highest in company history, up 7.5% compared to 2019 (pre-COVID). |
| ➢ | EBITDA* in 2023 up 79% compared to 2019 reflecting the changes to our operating model. |
| Role of the |
| Conducted an annual review of our compensation philosophy to ensure that it remains appropriate given strategic objectives; |
| Reviewed results from an annual review of compensation data related to our peers; |
| Reviewed and recommended for approval to the independent members of the board of directors all compensation components for our CEO; |
| ✔ | Reviewed and approved all compensation components for our |
| Performed an annual evaluation of the execution of our pay-for-performance philosophy, to ensure that the actual award decisions resulted in alignment of relative pay and relative performance compared to the compensation peer group; |
| Reviewed succession planning with the CEO and in executive session of the board. |
• Fixed base of cash compensation commensurate with job responsibilities and experience. | • Provide a fixed amount of cash compensation to attract and retain talented executives and differentiate the scope and complexity of executive’s positions as well as individual performance over time. | • Base salaries were increased in January 2023 by approximately 5.1% for the NEOs. | ||||
• Individual MIP opportunities are expressed as a percentage of base salary and can vary for executives based on their positions. Target MIP award opportunities are generally established so that total annual cash compensation (base salary plus target MIPs) approximates the median of our peer group. • Performance-based cash incentive pay is comprised of two plans: MIP-I is tied to the company achieving certain pre-tax earnings levels during the year (80% of total target cash incentive pay) and MIP-II is based on successfully meeting individual performance goals (20% of total target cash incentive pay). • The range of potential payouts for actual results relative to these goals is zero to 175% of target for MIP-I and zero to 100% of target for MIP-II. • MIP amounts are earned based on the results achieved as determined by the Committee after evaluating company and individual performance against pre-established goals. | • Motivate and reward achieving or exceeding company and individual performance objectives, reinforcing pay-for-performance. • Align performance measures for NEOs on key business objectives to lead the organization to achieve short-term financial and operational goals. • Ensure alignment of short-term and long-term strategies of the company. | • 2023 performance resulted in total MIP-I earned at 85.3% of its target and MIP-II earned at 100% of its target for the NEOs. | ||||
Long-Term Equity | • Awards are granted annually with consideration of competitive market grant levels. • Awards to NEOs are in the form of performance restricted stock units (PRSUs) based on EBITDA and Sales, and in the form of time-based restricted stock units. • Vesting: The PRSUs granted in 2023 that are earned will cliff vest in February 2026. The restricted stock units vest in equal increments over a three-year period. The grants are forfeitable upon termination of employment, except in the cases of death, disability, or normal retirement. | • Stock-based compensation links executive compensation directly to stockholder interests. • PRSUs provide a direct connection to company performance. • Multi-year vesting creates a retention mechanism and provides incentives for long-term creation of stockholder value. | • Award sizes were determined in consideration of market levels, internal equity, and historical practices. • 80% of our CEO’s and 70% of our other NEO’s equity awards were granted as PRSUs, with the remainder granted as RSUs. The PRSUs were tied 80% to EBITDA and 20% tied to Sales. • 2023 performance-based awards tied to EBITDA were earned at 83.9% of target and awards tied to Sales were earned at 44.5% of target. These earned performance-based awards will vest in February 2026. |
✔What We Do: ✔Pay-for performance. A significant percentage of targeted annual compensation is delivered in the form of variable compensation that is connected to actual performance. For | |
XProhibition against | ||
XNo dividends or dividend equivalents are accrued or paid on unvested and/or unexercised awards. | ||
XNo change-in-control tax gross ups.We do not provide change-in-control tax gross ups. | ||
XNo significant perquisites. We do not provide our employees, including our NEOs, with significant perquisites. | ||
| American Woodmark | Ethan Allen Interiors Inc. | La-Z-Boy Incorporated | |||
| Bassett Furniture Industries Inc. | Flexsteel Industries, Inc. | Miller Knoll, Inc. | |||
| Big 5 Sporting Goods Corporation | Hibbett Sports, Inc. | ||||
| Conn’s Inc. | |||||
| Sleep Number Corporation | |||||
| Culp, Inc. | |||||
| The Lovesac Company | |||||
| MIP-I Goal and Earned | ||||||||||||||||||||||||
| (in millions) | Q1 | Q2 | Q3 | Q4 | Annual | Total | ||||||||||||||||||
| MIP-I Weighting | 9 | % | 10 | % | 10 | % | 11 | % | 60 | % | 100 | % | ||||||||||||
| MIP-I Pre-Tax Earnings Goal | $ | 17.5 | $ | 19.6 | $ | 20.7 | $ | 20.9 | $ | 78.9 | ||||||||||||||
| 2023 Pre-Tax Earnings | $ | 15.4 | $ | 15.8 | $ | 22.9 | $ | 18.5 | $ | 72.7 | ||||||||||||||
| % of Goal Achieved | 88 | % | 81 | % | 111 | % | 89 | % | 92 | % | ||||||||||||||
| Target % Achieved | 76 | % | 62 | % | 133 | % | 78 | % | 84 | % | ||||||||||||||
| % of MIP-I Earned | 6 | % | 6 | % | 13 | % | 9 | % | 50 | % | 85 | % | ||||||||||||
Pre-tax Earnings (in thousands) | ||||||||||||||||||
2015 Achieved(1) | 2016 Achieved | 2017 Goal | 2017 Achieved | |||||||||||||||
| Q-1 | $ | 9,928 | $ | 7,587 | $ | 8,100 | $ | 9,740 | ||||||||||
| Q-2 | 7,027 | 8,762 | 8,400 | 9,694 | ||||||||||||||
| Q-3 | 12,414 | 12,125 | 14,500 | 9,719 | ||||||||||||||
| Q-4 | 15,093 | 17,347 | 16,500 | 14,070 | ||||||||||||||
| YTD | 44,462 | 45,821 | 47,500 | 43,223 | ||||||||||||||
| Position | Guidelines |
| Chief Executive Officer | 6.0x salary or 135,000 shares |
| President | 4.0x salary or 65,000 shares |
| Executive Vice President | 3.0x salary or 40,000 shares |
| Senior Vice President | 2.0x salary or 25,000 shares |
| Pension Benefits and Retirement Plans |
| Frequency of Advisory Stockholder Vote on Executive Compensation |
The The The | ||||||||
 |  |  |  |  | ||||
L. Allison Dukes Chair | G. Thomas Hough | Mylle H. Mangum | Derek G. Schiller | Al Trujillo | ||||
Name, Principal Position, and Year | Salary | Non-Equity Incentive Plan Compensation (1) | Stock Awards (2) | Change in Pension Value (3) | All Other Compensation (4) | Total | ||||||||||||||||||
Clarence H. Smith Chairman and Chief Executive Officer | ||||||||||||||||||||||||
| 2023 | 760,000 | 670,746 | 1,330,012 | 60,223 | 66,713 | 2,887,694 | ||||||||||||||||||
| 2022 | 725,000 | 772,676 | 1,150,562 | — | 30,953 | 2,679,191 | ||||||||||||||||||
| 2021 | 690,000 | 1,104,000 | 1,109,213 | 202,381 | 73,238 | 3,161,832 | ||||||||||||||||||
Steven G. Burdette President | ||||||||||||||||||||||||
| 2023 | 525,000 | 324,341 | 472,486 | 23,326 | 46,845 | 1,391,998 | ||||||||||||||||||
| 2022 | 462,833 | 369,516 | 384,790 | — | 48,544 | 1,302,850 | ||||||||||||||||||
| 2021 | 365,165 | 494,000 | 510,738 | — | 45,110 | 1,512,681 | ||||||||||||||||||
Richard B. Hare Executive Vice President and Chief Finance Officer | ||||||||||||||||||||||||
| 2023 | 465,000 | 266,754 | 399,988 | — | 28,842 | 1,160,584 | ||||||||||||||||||
| 2022 | 440,000 | 304,807 | 338,614 | — | 25,850 | 1,109,271 | ||||||||||||||||||
| 2021 | 420,000 | 436,800 | 343,875 | — | 27,537 | 1,228,212 | ||||||||||||||||||
J. Edward Clary Executive Vice President and Chief Information Officer | ||||||||||||||||||||||||
| 2023 | 420,000 | 222,405 | 300,007 | 35,819 | 26,990 | 1,005,221 | ||||||||||||||||||
| 2022 | 400,000 | 255,782 | 250,130 | — | 32,422 | 938,334 | ||||||||||||||||||
| 2021 | 387,000 | 371,520 | 274,609 | — | 28,284 | 1,061,413 | ||||||||||||||||||
John L. Gill Executive Vice President, Merchandising | ||||||||||||||||||||||||
| 2023 | 420,000 | 222,405 | 300,007 | 10,690 | 27,706 | 980,808 | ||||||||||||||||||
| 2022 | 400,000 | 255,782 | 250,130 | — | 25,133 | 931,045 | ||||||||||||||||||
| 2021 | 351,088 | 371,122 | 274,609 | — | 25,067 | 1,058,19 | ||||||||||||||||||
| Name | Year | Salary | Non-Equity Incentive Plan Compensation (1) | Stock Awards (2) | Option Awards (2) | Change in Pension Value (3) | All Other Compensation (4) | Total | ||||||||||
| Clarence H. Smith | 2017 | $650,000 | $495,820 | $479,600 | — | $12,992 | $48,880 | $1,687,292 | ||||||||||
| President and CEO | 2016 | 650,000 | 622,388 | 409,708 | — | — | 48,632 | 1,730,728 | ||||||||||
| 2015 | 650,000 | 524,498 | 455,016 | — | 16,870 | 47,746 | 1,694,130 | |||||||||||
Richard B. Hare(5) | 2017 | 242,644 | 172,228 | 221,998 | — | — | 31,089 | 667,959 | ||||||||||
| EVP and CFO | ||||||||||||||||||
Dennis L. Fink(6) | 2017 | 261,255 | 87,029 | — | — | 40,180 | 61,666 | 450,130 | ||||||||||
| EVP, Finance | 2016 | 390,000 | 242,731 | 210,710 | — | 15,969 | 29,862 | 889,272 | ||||||||||
| 2015 | 390,000 | 220,271 | 234,000 | — | 18,296 | 30,316 | 892,883 | |||||||||||
| Steven G. Burdette | 2017 | 370,000 | 153,802 | 228,900 | — | 38,281 | 27,953 | 818,936 | ||||||||||
| EVP, Operations | 2016 | 370,000 | 211,237 | 199,919 | — | 17,670 | 27,281 | 826,107 | ||||||||||
| 2015 | 370,000 | 204,000 | 222,000 | — | — | 25,954 | 821,954 | |||||||||||
| Richard D. Gallagher | 2017 | 360,000 | 144,461 | 228,900 | — | 51,424 | 29,879 | 814,664 | ||||||||||
| EVP, Merchandise | 2016 | 360,000 | 205,528 | 194,505 | — | 23,971 | 29,705 | 813,709 | ||||||||||
| 2015 | 360,000 | 204,535 | 216,000 | — | — | 25,293 | 805,828 | |||||||||||
| J. Edward Clary | 2017 | 355,000 | 156,796 | 218,000 | — | 57,930 | 27,141 | 814,867 | ||||||||||
| EVP and CIO | 2016 | 355,000 | 206,082 | 191,798 | — | 26,982 | 27,637 | 807,499 | ||||||||||
| 2015 | 346,670 | 199,564 | 207,024 | — | — | 26,795 | 780,053 |
| Summary Compensation Table Footnotes |
| (1) | Non-Equity Incentive Plan Compensation: Amounts for the cash earned |
| Corporate Performance ($) | Individual Performance | Total Annual Incentive Award ($) | ||||||||||
| Smith | $ | 518,746 | $ | 152,000 | $ | 670,746 | ||||||
| Burdette | 250,841 | 73,500 | 324,341 | |||||||||
| Hare | 206,304 | 60,450 | 266,754 | |||||||||
| Clary | 172,005 | 50,400 | 222,405 | |||||||||
| Gill | 172,005 | 50,400 | 222,405 | |||||||||
Stock Awards: These amounts |
| Components of Annual Stock Awards | Additional Information | |||||||||||||||||||||||
Value of Time-based shares ($) | Value of Performance Shares - Target ($) | Total | Value of Performance Shares - Maximum ($) | |||||||||||||||||||||
| EBITDA | Sales | EBITDA | Sales | |||||||||||||||||||||
| Smith | $ | 266,029 | $ | 851,193 | $ | 212,790 | $ | 1,330,012 | $ | 1,489,595 | $ | 265,996 | ||||||||||||
| Burdette | 141,749 | 264,603 | 66,134 | 472,486 | 463,072 | 82,676 | ||||||||||||||||||
| Hare | 120,003 | 223,995 | 55,990 | 399,988 | 391,999 | 69,980 | ||||||||||||||||||
| Clary | 90,002 | 168,004 | 42,001 | 300,007 | 294,007 | 52,510 | ||||||||||||||||||
| Gill | 90,002 | 168,004 | 42,001 | 300,007 | 294,007 | 52,510 | ||||||||||||||||||
Change in Pension Value: Represents the aggregate |
All Other Compensation:These amounts for 2023 are comprised of |
401 (K) Plan Match(a) | Deferred Compensation Plan Contribution(b) | Other(c) | Total | |||||||||||||
| Smith | $ | 13,200 | $ | 36,080 | $ | 17,433 | $ | 66,713 | ||||||||
| Burdette | 13,200 | 16,935 | 16,710 | 46,845 | ||||||||||||
| Hare | 13,200 | — | 15,642 | 28,842 | ||||||||||||
| Clary | 13,200 | — | 13,790 | 26,990 | ||||||||||||
| Gill | 13,200 | — | 14,506 | 27,706 | ||||||||||||
| (a) | The maximum 401(k) match for calendar year 2023 was $13,200. |
| (b) | Company contributions to the Deferred Compensation Plan |
| (c) | Includes: premium costs for covering a portion of medical insurance coverage, additional life insurance, long-term disability coverage and health examinations. |
Estimated Possible Payouts Under Non-Equity Incentive Plan Awards ($)(2) | Estimated Possible Payouts Under Equity Incentive Plan Awards (#)(3)(4) | ||||||||||||||||||||||||||||||||||||
| Name, Grant and NCG Committee Approval Date | Award Type (1) | Threshold | Target | Maximum | Threshold | Target | Maximum | All Other Stock Awards: Number of Shares of Stock (#) | Exercise or Base Price of Awards $/Share(5) | Grant Date Fair Value of Stock Award $(6) | |||||||||||||||||||||||||||
| Clarence H. Smith | |||||||||||||||||||||||||||||||||||||
| 1/26/2023 | ACMIP-I | $ | 21,888 | $ | 608,000 | $ | 1,064,000 | — | — | — | — | — | — | ||||||||||||||||||||||||
| 1/26/2023 | ACMIP-II | — | 152,000 | 152,000 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 1/26/2023 | PRSU | — | — | — | 10,271 | 25,677 | 44,935 | — | $ | 33.15 | $ | 851,193 | |||||||||||||||||||||||||
| 1/26/2023 | PRSU.1 | — | — | — | 2,568 | 6,419 | 8,024 | — | 33.15 | 212,790 | |||||||||||||||||||||||||||
| 1/26/2023 | RSU | — | — | — | — | — | — | 8,025 | 33.15 | 266,029 | |||||||||||||||||||||||||||
| Steven G. Burdette | |||||||||||||||||||||||||||||||||||||
| 1/26/2023 | ACMIP-I | 10,584 | 294,000 | 514,500 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 1/26/2023 | ACMIP-II | — | 73,500 | 73,500 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 1/26/2023 | PRSU | — | — | — | 3,193 | 7,982 | 13,969 | — | $ | 33.15 | 264,603 | ||||||||||||||||||||||||||
| 1/26/2023 | PRSU.1 | — | — | — | 798 | 1,995 | 2,494 | — | 33.15 | 66,134 | |||||||||||||||||||||||||||
| 1/26/2023 | RSU | — | — | — | — | — | — | 4,276 | 33.15 | 141,749 | |||||||||||||||||||||||||||
| Richard B. Hare | |||||||||||||||||||||||||||||||||||||
| 1/26/2023 | ACMIP-I | 8,705 | 241,800 | 423,150 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 1/26/2023 | ACMIP-II | — | 60,450 | 60,450 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 1/26/2023 | PRSU | — | — | — | 2,703 | 6,757 | 11,825 | — | $ | 33.15 | 223,995 | ||||||||||||||||||||||||||
| 1/26/2023 | PRSU.1 | — | — | — | 676 | 1,689 | 2,111 | — | 33.15 | 55,990 | |||||||||||||||||||||||||||
| 1/26/2023 | RSU | — | — | — | — | — | — | 3,620 | 33.15 | 120,003 | |||||||||||||||||||||||||||
| Edward J. Clary | |||||||||||||||||||||||||||||||||||||
| 1/26/2023 | ACMIP-I | 7,258 | 201,600 | 352,800 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 1/26/2023 | ACMIP-II | — | 50,400 | 50,400 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 1/26/2023 | PRSU | — | — | — | 2,027 | 5,068 | 8,869 | — | $ | 33.15 | 168,004 | ||||||||||||||||||||||||||
| 1/26/2023 | PRSU.1 | — | — | — | 507 | 1,267 | 1,584 | — | 33.15 | 42,001 | |||||||||||||||||||||||||||
| 1/26/2023 | RSU | — | — | — | — | — | — | 2,715 | 33.15 | 90,002 | |||||||||||||||||||||||||||
| John L. Gill | |||||||||||||||||||||||||||||||||||||
| 1/26/2023 | ACMIP-I | 7,258 | 201,600 | 352,800 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 1/26/2023 | ACMIP-II | — | 50,400 | 50,400 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 1/26/2023 | PRSU | — | — | — | 2,027 | 5,068 | 8,869 | — | $ | 33.15 | 168,004 | ||||||||||||||||||||||||||
| 1/26/2023 | PRSU.1 | — | — | — | 507 | 1,267 | 1,584 | — | 33.15 | 42,001 | |||||||||||||||||||||||||||
| 1/26/2023 | RSU | — | — | — | — | — | — | 2,715 | 33.15 | 90,002 | |||||||||||||||||||||||||||
| Name | Award Type(1) | Grant and Compensation Committee Approval Date | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards ($)(2) | Estimated Possible Payouts Under Equity Incentive Plan Awards (#)(3)(4) | All Other Stock Awards: Number of Shares of Stock (#) | Exercise or Base Price of Awards $/Share(5) | Grant Date Fair Value of Stock Award $(6) | |||||||||||
| Threshold | Target | Maximum | Threshold | Target | Maximum | |||||||||||||
| Smith | ACMIP-I | 1/30/2017 | $14,560 | $520,000 | $910,000 | — | — | — | — | — | — | |||||||
| ACMIP-II | 1/30/2017 | 26,000 | 130,000 | 130,000 | — | — | — | — | — | — | ||||||||
| PRSU | 1/30/2017 | — | — | — | 9,240 | 15,400 | 24,640 | — | $ 21.80 | $335,720 | ||||||||
| PRSU.1 | 1/30/2017 | — | — | — | 0 | 6,600 | 6,600 | — | 21.80 | 143,880 | ||||||||
| Hare | ACMIP-I | 05/04/2017 | 4,973 | 177,600 | 310,800 | — | — | — | — | — | — | |||||||
| ACMIP-II | 05/04/2017 | 11,100 | 44,400 | 44,400 | — | — | — | — | — | — | ||||||||
| PRSU | 05/04/2017 | — | — | — | 2,638 | 4,396 | 7,034 | — | (2) | 25.25 | 110,999 | |||||||
| RSU | 05/04/2017 | — | — | — | — | — | — | 4,396 | 25.25 | 110,999 | ||||||||
| Fink | ACMIP-I | 05/09/2017 | 10,483 | 26,208 | 45,864 | — | — | — | — | — | — | |||||||
| ACMIP-II | 05/09/2017 | 46,800 | 46,800 | 46,800 | — | — | — | — | — | — | ||||||||
| Burdette | ACMIP-I | 1/30/2017 | 4,973 | 177,600 | 310,800 | — | — | — | — | — | — | |||||||
| ACMIP-II | 1/30/2017 | 2,220 | 44,400 | 44,400 | — | — | — | — | — | — | ||||||||
| PRSU | 1/30/2017 | — | — | — | 3,150 | 5,250 | 8,400 | — | 21.80 | 114,450 | ||||||||
| RSU | 1/30/2017 | — | — | — | — | — | — | 5,250 | 21.80 | 114,450 | ||||||||
| Gallagher | ACMIP-I | 1/30/2017 | 4,838 | 172,800 | 302,400 | — | — | — | — | — | — | |||||||
| ACMIP-II | 1/30/2017 | 4,320 | 43,200 | 43,200 | — | — | — | — | — | — | ||||||||
| PRSU | 1/30/2017 | — | — | — | 3,150 | 5,250 | 8,400 | — | 21.80 | 114,450 | ||||||||
| RSU | 1/30/2017 | — | — | — | — | — | — | 21.80 | 114,450 | |||||||||
| Clary | ACMIP-I | 1/30/2017 | 4,771 | 170,400 | 298,200 | — | — | — | — | — | — | |||||||
| ACMIP-II | 1/30/2017 | 4,260 | 42,600 | 42,600 | — | — | — | — | — | — | ||||||||
| PRSU | 1/30/2017 | — | — | — | 3,000 | 5,000 | 8,000 | — | 21.80 | 109,000 | ||||||||
| RSU | 1/30/2017 | — | — | — | — | — | — | 5,000 | 21.80 | 109,000 | ||||||||
| (1) | Award Type: | ACMIP-I = Annual Cash Management Incentive Plan Compensation based on company performance |
| (2) | The |
| (3) | The PRSU |
| (4) | The PRSU.1 |
| (5) | The base price for the PRSUs and RSUs is the closing price of our stock on the date of grant. |
| (6) | The fair value for the PRSUs and RSUs was determined using the target number of shares granted multiplied by the closing stock price on the grant |
| Stock Awards | |||||||||||
| Name | Date Awarded | Number of Shares of Stock That Have Not Vested (#) | Market Value of Shares of Stock that Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares That Have Not Vested (#) | Equity Incentive Plan Award: Market or Payout Value of Unearned Shares That Have Not Vested ($) | ||||||
| Clarence H. Smith | |||||||||||
1/21/21(1) | 2,201 | $ | 78,136 | ||||||||
1/21/21(2) | 37,352 | 1,325,996 | |||||||||
1/21/21(3) | 6,670 | 236,785 | |||||||||
1/26/22(1) | 5,262 | 186,801 | |||||||||
1/26/22(4) | 25,592 | 908,516 | |||||||||
1/26/22(5) | 6,237 | 221,414 | |||||||||
1/26/23(1) | 7,715 | 273,883 | |||||||||
1/26/23(6) | 21,543 | 764,777 | |||||||||
1/26/23(7) | 2,856 | 101,388 | |||||||||
| Steven G. Burdette | |||||||||||
1/21/21(1) | 995 | 35,323 | |||||||||
1/21/21(2) | 9,849 | 349,640 | |||||||||
1/21/21(3) | 1,759 | 62,445 | |||||||||
3/01/21(1) | 1,650 | 58,575 | |||||||||
1/26/22(1) | 2,640 | 93,720 | |||||||||
1/26/22(4) | 7,787 | 276,439 | |||||||||
1/26/22(5) | 1,899 | 67,415 | |||||||||
1/26/23(1) | 4,276 | 151,798 | |||||||||
1/26/23(6) | 6,697 | 237,744 | |||||||||
1/26/23(7) | 888 | 31,524 | |||||||||
| Richard B. Hare | |||||||||||
1/21/21(1) | 1,039 | 36,885 | |||||||||
1/21/21(2) | 10,290 | 365,295 | |||||||||
1/21/21(3) | 1,838 | 65,249 | |||||||||
1/26/22(1) | 2,323 | 82,467 | |||||||||
1/26/22(4) | 6,853 | 243,282 | |||||||||
1/26/22(5) | 1,671 | 59,321 | |||||||||
1/26/23(1) | 3,620 | 128,510 | |||||||||
1/26/23(6) | 5,669 | 201,250 | |||||||||
1/26/23(7) | 752 | 26,696 | |||||||||
| SSARs Awards | Stock Awards | |||||||||||||||||||
| Name | Date Awarded | Number of Securities Underlying Exercisable Awards (#) | Number of Securities Underlying Unexercisable Awards (#) | Exercise Price ($) | Expiration Date | Number of Shares of Stock That Have Not Vested(#) | Market Value of Shares of Stock that Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units, That Have Not Vested(#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units, That Have Not Vested($) | |||||||||||
| Smith | 1/24/13 | (1) | 22,000 | $18.14 | 1/24/20 | |||||||||||||||
| 1/17/14 | (3) | 970 | 21,971 | |||||||||||||||||
| 1/23/15 | (4) | 13,152 | 297,893 | |||||||||||||||||
| 1/23/15 | (3) | 1,422 | 32,208 | 1,422 | 32,208 | |||||||||||||||
| 1/26/16 | (5) | 16,109 | 364,869 | |||||||||||||||||
| 1/26/16 | (3) | 3,269 | 74,043 | |||||||||||||||||
| 1/30/17 | (6) | 14,384 | 325,798 | |||||||||||||||||
| 1/30/17 | (3) | 4,950 | 112,117 | |||||||||||||||||
Hare | 5/04/17 | (7) | 4,396 | 99,569 | ||||||||||||||||
| 5/04/17 | (6) | 4,106 | 93,000 | |||||||||||||||||
| Fink | 1/17/14 | (2) | 985 | 22,310 | ||||||||||||||||
| 1/23/15 | (2) | 2,437 | 55,198 | |||||||||||||||||
| 1/23/15 | (4) | 4,831 | 109,422 | |||||||||||||||||
| 1/26/16 | (5) | 8,285 | 187,655 | |||||||||||||||||
Burdette | 1/17/14 | (2) | 907 | 20,544 | ||||||||||||||||
| 1/23/15 | (2) | 2,312 | 52,367 | |||||||||||||||||
| 1/23/15 | (4) | 4,583 | 103,805 | |||||||||||||||||
| 1/26/16 | (7) | 3,987 | 90,306 | |||||||||||||||||
| 1/26/16 | (5) | 5,615 | 127,180 | |||||||||||||||||
| 1/30/17 | (7) | 5,250 | 118,913 | |||||||||||||||||
| 1/30/17 | (6) | 4,904 | 111,076 | |||||||||||||||||
Gallagher | 1/17/14 | (2) | 907 | 20,544 | ||||||||||||||||
| 1/23/15 | (2) | 2,250 | 50,963 | |||||||||||||||||
| 1/23/15 | (4) | 4,459 | 100,996 | |||||||||||||||||
| 1/26/16 | (7) | 3,879 | 87,859 | |||||||||||||||||
| 1/26/16 | (5) | 5,463 | 123,737 | |||||||||||||||||
| 1/30/17 | (7) | 5,250 | 118,913 | |||||||||||||||||
| 1/30/17 | (6) | 4,904 | 111,076 | |||||||||||||||||
Clary | 1/24/13 | (1) | 12,500 | $18.14 | 1/24/20 | |||||||||||||||
| 1/17/14 | (2) | 907 | 20,544 | |||||||||||||||||
| 1/23/15 | (2) | 2,156 | 48,833 | |||||||||||||||||
| 1/23/15 | (4) | 4,274 | 96,806 | |||||||||||||||||
| 1/26/16 | (7) | 3,825 | 86,636 | |||||||||||||||||
| 1/26/16 | (5) | 5,387 | 122,016 | |||||||||||||||||
| 1/30/17 | (7) | 5,000 | 113,250 | |||||||||||||||||
| 1/30/17 | (6) | 4,670 | 105,776 | |||||||||||||||||
| Stock Awards | |||||||||||
| Name | Date Awarded | Number of Shares of Stock That Have Not Vested (#) | Market Value of Shares of Stock that Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares That Have Not Vested (#) | Equity Incentive Plan Award: Market or Payout Value of Unearned Shares That Have Not Vested ($) | ||||||
| J. Edward Clary | |||||||||||
1/21/21(1) | 830 | 29,465 | |||||||||
1/21/21(2) | 8,218 | 291,739 | |||||||||
1/21/21(3) | 1,468 | 52,114 | |||||||||
1/26/22(1) | 1,716 | 60,918 | |||||||||
1/26/22(4) | 5,063 | 179,737 | |||||||||
1/26/22(5) | 1,234 | 43,807 | |||||||||
1/26/23(1) | 2,715 | 96,383 | |||||||||
1/26/23(6) | 4,252 | 150,946 | |||||||||
1/26/23(7) | 564 | 20,022 | |||||||||
| John L. Gill | |||||||||||
1/21/21(1) | 830 | 29,465 | |||||||||
1/21/21(2) | 8,218 | 291,739 | |||||||||
1/21/21(3) | 1,468 | 52,114 | |||||||||
1/26/22(1) | 1,716 | 60,918 | |||||||||
1/26/22(4) | 5,063 | 179,737 | |||||||||
1/26/22(5) | 1,234 | 43,807 | |||||||||
1/26/23(1) | 2,715 | 96,383 | |||||||||
1/26/23(6) | 4,252 | 150,946 | |||||||||
1/26/23(7) | 564 | 20,022 | |||||||||
| Award Information | Vesting Rate | Vesting Dates | Conditions | |
| (1) | Stock-Settled Appreciation Rights | 25% per year | May 8 each year beginning year following grant date | Continued employment or normal retirement through vesting date. |
| (2) | Restricted Stock Units | 25% per year | May 8 each year beginning year following grant date | Continued employment or normal retirement through vesting date. |
| (3) | Performance Restricted Stock Units | 25% per year | May 8 each year beginning year following grant date | Contingent upon achieving certain level of annual net sales. |
| (4) | Performance Restricted Stock Units | 100% | February 28, 2018 | Based on 2015 EBITDA, shares achieved at 99.1% of target. |
| (5) | Performance Restricted Stock Units | 100% | February 28, 2019 | Based on 2016 EBITDA, shares achieved at 105.6% of target. |
| (6) | Performance Restricted Stock Units | 100% | February 28, 2020 | Based on 2017 EBITDA shares achieved at 93.4% of target. |
| (7) | Restricted Stock Units | 25% per year | May 8 each year beginning year following grant date | Continued employment through vesting date. |
| Award Information | Vesting Rate | Vesting Dates | Conditions | ||||
| (1) | Restricted Stock Units | 33.3% per year | May 8 each year beginning year following grant date | Continued employment through vesting date. | |||
| (2) | Performance Restricted Stock Units | 100% | February 28, 2024 | Based on 2021 EBITDA, shares achieved at 175% of target. | |||
| (3) | Performance Restricted Stock Units | 100% | February 28, 2024 | Based on 2021 consolidated sales, shares achieved at 125% of target. | |||
| (4) | Performance Restricted Stock Units | 100% | February 28, 2025 | Based on 2022 EBITDA, shares achieved at 104.3% of target. | |||
| (5) | Performance Restricted Stock Units | 100% | February 28, 2025 | Based on 2022 consolidated sales, shares achieved at 101.7% of target. | |||
| (6) | Performance Restricted Stock Units | 100% | February 28, 2026 | Based on 2023 EBITDA, shares achieved at 83.9% of target. | |||
| (7) | Performance Restricted Stock Units | 100% | February 28, 2026 | Based on 2023 consolidated sales, shares achieved at 44.5% of target. | |||
| Option Exercises and Stock Vested Table |
| Option and SSARs Award | Stock Awards | |||||||||||||||
| Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#)(2) | Value Realized on Vesting ($)(1) | ||||||||||||
| Clarence Smith | — | — | 62,065 | $ | 2,231,514 | |||||||||||
| Steve Burdette | — | — | 22,023 | 753,832 | ||||||||||||
| Richard Hare | — | — | 20,255 | 708,624 | ||||||||||||
| Ed Clary | — | — | 16,605 | 581,765 | ||||||||||||
| John Gill | — | — | 16,593 | 581,459 | ||||||||||||
| Option and SSARs Awards | Stock Awards | |||||||||||||||
| Name | Number of Shares Acquired on Exercise (#)(1) | Value Realized on Exercise ($)(2) | Number of Shares Acquired on Vesting (#)(1) | Value Realized on Vesting ($)(2) | ||||||||||||
| Clarence Smith | — | $ | — | 13,474 | $ | 329,462 | ||||||||||
| Richard Hare | — | — | — | — | ||||||||||||
| Dennis Fink | 1,859 | 74,340 | 7,717 | 190,842 | ||||||||||||
| Steve Burdette | 1,820 | 69,938 | 7,721 | 191,473 | ||||||||||||
| Richard Gallagher | 2,255 | 100,750 | 7,654 | 189,758 | ||||||||||||
| Ed Clary | — | — | 7,589 | 188,094 | ||||||||||||
(1) | The value realized reflects the taxable value to the |
| (2) | The number of shares acquired on vesting is the gross number, including shares surrendered to us for the payment of withholding taxes. The following table outlines the net number of shares received by the NEOs. |
| Name | Net Shares Received (#) | |
| Smith | 34,474 | |
| Burdette | 12,032 | |
| Hare | 11,067 | |
| Clary | 9,072 | |
| Gill | 9,438 |
| Name | Aggregate Earnings (Loss) in 2023($) | Aggregate Withdrawals/ Distributions in 2023 ($) | Aggregate Balance at Last FYE ($) | |||||||||
| Clarence Smith | $ | 97,664 | — | $ | 423,459 | |||||||
| Ed Clary | 79,658 | — | 621,287 | |||||||||
Name | Aggregate Earnings (Loss) in 2017 ($) | Aggregate Balance at Last FYE ($) | ||||||
| Clarence Smith | $ | 140,034 | $ | 953,677 | ||||
| Dennis Fink | 69,254 | 361,207 | ||||||
| Ed Clary | 69,126 | 364,903 | ||||||
Name | Executive Contributions in 2017 ($)(1) | Company Contributions for 2017 ($)(2) | Aggregate Earnings (Loss) in 2017 ($)(3) | Aggregate Withdrawals/ Distributions in 2017 ($) | Aggregate Balance at Last FYE ($)(4) | |||||||||||||||
| Clarence Smith | $ | 392,773 | $ | 30,072 | $ | 253,558 | — | $ | 2,111,519 | |||||||||||
| Dennis Fink | 99,270 | — | 6,284 | — | 380,013 | |||||||||||||||
| Steve Burdette | 39,625 | 9,338 | 19,584 | $ | 29,835 | 150,047 | ||||||||||||||
| Richard Gallagher | 77,108 | 8,866 | 34,736 | — | 306,584 | |||||||||||||||
| Ed Clary | 55,417 | 8,733 | 33,255 | — | 214,168 | |||||||||||||||
| Name | Executive Contributions in 2023 ($)(1) | Company Contributions for 2023 ($)(2) | Aggregate Earnings (Loss) in 2023 ($)(3) | Aggregate Withdrawals/ Distributions in 2023 ($) | Aggregate Balance at Last FYE ($)(4) | |||||||||||||||
| Clarence Smith | $ | 109,250 | $ | 36,080 | $ | 623,722 | $ | (174,494 | ) | $ | 4,284,895 | |||||||||
| Steve Burdette | 52,396 | 16,935 | 49,748 | — | 556,908 | |||||||||||||||
| Richard Hare | — | — | 35,170 | — | 250,566 | |||||||||||||||
| Ed Clary | 167 | — | 150,154 | — | 705,621 | |||||||||||||||
(1) | Amounts included in this column have been included for the applicable year in the |
(2) | Amounts included in this column have been reported for the applicable year in the |
(3) | Amounts included in this column do not constitute above-market or preferential earnings and accordingly such amounts are not reported in the |
(4) | All amounts included in this column have been reported in the current or prior years as either salary, non-equity incentive compensation or all other compensation in the summary compensation tables or as earnings or withdrawals in the deferred compensation tables. |
Name | Plan Name | Number of Years Credited Service (#) | Present Value of Accumulated Benefit ($) | Payments during last fiscal year ($) | |||||||||
| Clarence Smith | SERP | 40 | $ | 498,233 | — | ||||||||
| Dennis Fink | SERP | 23 | 684,138 | $ | 42,942 | ||||||||
| Steve Burdette | SERP | 32 | 271,698 | ||||||||||
| Richard Gallagher | SERP | 27 | 378,796 | — | |||||||||
| Ed Clary | SERP | 25 | 427,154 | — | |||||||||
| Name | Plan Name | Number of Years Credited Service (#) | Present Value of Accumulated Benefits ($) | Payments during last fiscal year ($) | |||||||||
| Clarence Smith | SERP | 40 | $ | 738,387 | — | ||||||||
| Steve Burdette | SERP | 32 | 282,058 | — | |||||||||
| Ed Clary | SERP | 25 | 442,409 | — | |||||||||
| John Gill | SERP | 15 | 120,555 | — | |||||||||
| Name | Voluntary | Involuntary Not for Cause | For Cause | Change in Control No Termination | Involuntary for Good Reason/Not for Cause (CIC) | Death | Disability | |||||||||||||||||||||
| Clarence H. Smith | ||||||||||||||||||||||||||||
| Severance | — | — | — | — | $ | 3,218,282 | — | — | ||||||||||||||||||||
| Healthcare and Other | — | — | — | — | 47,391 | — | — | |||||||||||||||||||||
Long-Term Incentive | — | (2) | — | (2) | — | (2) | $ | 4,097,694 | $ | 4,097,694 | $ | 4,097,694 | $ | 4,097,694 | ||||||||||||||
Retirement Plans(1) | — | — | — | — | — | — | — | |||||||||||||||||||||
| Steve Burdette | ||||||||||||||||||||||||||||
| Severance | — | — | — | — | 1,841,904 | — | — | |||||||||||||||||||||
| Healthcare and Other | — | — | — | — | 47,391 | — | — | |||||||||||||||||||||
| Long-Term Incentive | — | (2) | — | (2) | — | (2) | 1,364,620 | 1,364,620 | 1,364,620 | 1,364,620 | ||||||||||||||||||
Retirement Plans(1) | — | — | — | — | — | — | — | |||||||||||||||||||||
| Richard Hare | ||||||||||||||||||||||||||||
| Severance | — | — | — | — | 1,602,240 | — | — | |||||||||||||||||||||
| Healthcare and Other | — | — | — | — | 61,479 | — | — | |||||||||||||||||||||
| Long-Term Incentive | — | (2) | — | (2) | — | (2) | 1,208,953 | 1,208,953 | 1,208,953 | 1,208,953 | ||||||||||||||||||
Retirement Plans(1) | — | — | — | — | — | — | — | |||||||||||||||||||||
| Ed Clary | ||||||||||||||||||||||||||||
| Severance | — | — | — | — | 1,406,472 | — | — | |||||||||||||||||||||
| Healthcare and Other | — | — | — | — | 47,391 | — | — | |||||||||||||||||||||
| Long-Term Incentive | — | (2) | — | (2) | — | (2) | 925,130 | 925,130 | 925,130 | 925,130 | ||||||||||||||||||
Retirement Plans(1) | — | — | — | — | — | — | — | |||||||||||||||||||||
| John Gill | ||||||||||||||||||||||||||||
| Severance | — | — | — | — | 1,406,472 | — | — | |||||||||||||||||||||
| Healthcare and Other | — | — | — | — | 47,391 | — | — | |||||||||||||||||||||
| Long-Term Incentive | — | (2) | — | (2) | — | (2) | 925,130 | 925,130 | 925,130 | 925,130 | ||||||||||||||||||
Retirement Plans(1) | — | — | — | — | — | — | — | |||||||||||||||||||||
| 1. | We disclose the amounts related to the SERP Plan and the plans in which each NEO participates in the Pension Benefits, the Top Hat Mutual Fund Option Plan and the Deferred Compensation Plan Tables. |
| Name | Voluntary | Involuntary Not for Cause | For Cause | Involuntary for Good Reason/Not for Cause (CIC) | Death | Disability | |||||||
| Clarence Smith | |||||||||||||
| Severance | — | — | — | $1,300,000 | — | — | |||||||
| Bonus | — | — | — | 1,095,138 | — | — | |||||||
| Healthcare and Other | — | — | — | 61,224 | — | — | |||||||
| Long-Term Incentive | — | (2) | — | — | 1,715,704 | $1,141,959 | (3) | $1,141,959 | (3) | ||||
Retirement Plans(1) | �� — | — | — | — | — | — | |||||||
| Richard Hare | |||||||||||||
| Severance | — | — | — | 740,000 | — | — | |||||||
| Bonus | — | — | — | 344,456 | — | — | |||||||
| Healthcare and Other | — | — | — | 69,320 | — | — | |||||||
| Long-Term Incentive | — | — | — | 231,467 | 192,569 | (3) | 192,569 | (3) | |||||
Retirement Plans(1) | — | — | — | — | — | — | |||||||
| Dennis Fink | |||||||||||||
| Severance | — | — | — | — | — | — | |||||||
| Bonus | — | — | — | — | — | — | |||||||
| Healthcare and Other | — | — | — | — | — | — | |||||||
| Long-Term Incentive | $374,585 | (2) | — | — | — | — | — | ||||||
Retirement Plans(1) | 42,942 | — | — | — | — | — | |||||||
| Steve Burdette | |||||||||||||
| Severance | — | — | — | 740,000 | — | — | |||||||
| Bonus | — | — | — | 379,292 | — | — | |||||||
| Healthcare and Other | — | — | — | 37,802 | — | — | |||||||
| Long-Term Incentive | — | — | — | 750,267 | 624,191 | (3) | 624,191 | (3) | |||||
Retirement Plans(1) | — | — | — | — | — | — | |||||||
| Richard Gallagher | |||||||||||||
| Severance | — | — | — | 720,000 | — | — | |||||||
| Bonus | — | — | — | 369,682 | — | — | |||||||
| Healthcare and Other | — | — | — | 77,123 | — | — | |||||||
| Long-Term Incentive | — | — | — | 738,124 | 614,088 | (3) | 614,088 | (3) | |||||
Retirement Plans(1) | — | — | — | — | — | — | |||||||
| Ed Clary | |||||||||||||
| Severance | — | — | — | 710,000 | — | — | |||||||
| Bonus | — | — | — | 374,962 | — | — | |||||||
| Healthcare and Other | — | — | — | 79,398 | — | — | |||||||
| Long-Term Incentive | — | — | — | 827,375 | 650,236 | (3) | 650,236 | (3) | |||||
Retirement Plans(1) | — | — | — | — | — | — |
| 2. | Mr. Smith was the only NEO that was retirement eligible for purposes of the long-term incentive awards at December 31, 2023. If he had retired on such date, his outstanding awards would not have automatically vested. Therefore, we report zero value in the table above (considering for this purpose, “retirement” is a subset of voluntary termination). However, some of his awards would continue to vest following his retirement through the end of the respective vesting periods, subject to his compliance with certain restrictive covenants. The values of such awards at December 31, 2023 were $4,019,559. |
| 3. | Time-based RSUs vest in full upon an NEO’s termination of employment by reason of death or disability. Similarly, PRSUs generally vest upon an NEO’s termination of employment by reason of death or disability based on actual performance through the date of death or disability, which for purposes of this table is assumed to be December 31, 2023. |
| CEO Pay Ratio |
| Pay-Versus-Performance |
| Value of initial Fixed $100 Investment | Company Selected Financial Performance Measure | |||||||||||||||||||||||||||||||
| Year | SCT Total Compensation for PEO (1) | Compensation Actually Paid to PEO | Average SCT Total Compensation For Non-PEO NEOs (2) | Average Compensation Actually Paid to Non‑PEO NEOs | Total Shareholder Return | Peer Group Total Shareholder Return (3) | Net Income (4) (in 000s) | Pre-Tax Income (5) (in 000s) | ||||||||||||||||||||||||
| (a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | ||||||||||||||||||||||||
| 2023 | $ | 2,887,694 | $ | 3,479,323 | $ | 1,134,652 | $ | 1,292,075 | 246 | 142 | $ | 56,319 | $ | 72,711 | ||||||||||||||||||
| 2022 | 2,679,191 | 2,646,013 | 1,170,014 | 959,065 | 193 | 122 | 89,358 | 119,501 | ||||||||||||||||||||||||
| 2021 | 3,161,832 | 3,814,594 | 1,215,126 | 1,490,490 | 184 | 184 | 90,803 | 118,535 | ||||||||||||||||||||||||
| 2020 | 2,437,008 | 3,382,845 | 1,013,649 | 1,268,297 | 153 | 136 | 59,148 | 76,731 | ||||||||||||||||||||||||
| 1. | Clarence Smith served as our CEO for the entirety of 2023, 2022, 2021, and 2020. |
| 2. | The NEOs included in this calculation for each year are: |
| 3. | The peer group TSR is based on the cumulative return of the NYSE/AMEX/Nasdaq Home Furnishings & Equipment Store Index (SIC Codes 5700-5799). |
| 4. | Net income as included in our 2023 Annual Report on Form 10-K. |
| 5. | Pre-tax income, or income before income taxes, as included in our 2023 Annual Report on Form 10-K. |
| 6. | The additional table below sets forth each of the amounts required by SEC rule to be deducted from and added to the amount of total compensation as reflected in the Summary Compensation Table, to calculate CAP. There were no assumptions made in the valuation of equity awards that differ materially from those disclosed as of the grant date of such equity awards. |
| PEO | 2023 | 2022 | 2021 | 2020 | ||||||||||||
| Total Compensation From SCT | $ | 2,887,694 | $ | 2,679,191 | $ | 3,161,832 | $ | 2,437,008 | ||||||||
DEDUCT: grant date fair value (GDFV) of equity awards granted during FY | $ | 1,330,012 | $ | 1,150,562 | $ | 1,092,213 | $ | 816,800 | ||||||||
ADD: FV as of FY-end of equity awards granted during the year that are outstanding and unvested as of FY-end | $ | 1,139,337 | $ | 1,219,920 | $ | 1,549,655 | $ | 1,673,482 | ||||||||
ADD: change as of end of FY in FV of awards granted in any prior year that are outstanding and unvested as of FY-end | $ | 466,558 | $ | (69,860 | ) | $ | 198,163 | $ | 197,468 | |||||||
ADD: change as of the vesting date (from end of prior FY) in FV for any equity awards granted in any prior year that vested at the end of or during FY | $ | 375,969 | $ | (32,676 | ) | $ | 199,538 | $ | (57,482 | ) | ||||||
DEDUCT: FV at the end of the prior FY for awards granted in any prior year that failed to meet applicable vesting conditions or were cancelled during FY | $ | — | $ | — | $ | — | $ | 33,264 | ||||||||
DEDUCT: change in actuarial present value of the accumulated benefit under all defined benefit and actuarial pension plans reported in SCT(1) | $ | 60,223 | $ | — | $ | 202,381 | $ | 17,567 | ||||||||
| Compensation Actually Paid (CAP) as defined by SEC Rule | $ | 3,479,323 | $ | 2,646,013 | $ | 3,814,594 | $ | 3,382,845 | ||||||||
| Other NEOs | 2023 | 2022 | 2021 | 2020 | ||||||||||||
| Total Compensation from SCT | $ | 1,134,652 | $ | 1,170,014 | $ | 1,215,126 | $ | 1,013,649 | ||||||||
DEDUCT: grant date fair value (GDFV) of equity awards granted during FY | $ | 368,122 | $ | 281,772 | $ | 350,958 | $ | 254,229 | ||||||||
ADD: FV as of FY-end of equity awards granted during the year that are outstanding and unvested as of FY-end | $ | 328,056 | $ | 260,274 | $ | 453,223 | $ | 498,822 | ||||||||
ADD: change as of end of FY in FV of awards granted in any prior year that are outstanding and unvested as of FY-end | $ | 122,711 | $ | (16,027 | ) | $ | 63,599 | $ | 89,305 | |||||||
ADD: change as of the vesting date (from end of prior FY) in FV for any equity awards granted in any prior year that vested at the end of or during FY | $ | 92,237 | $ | (19,253 | ) | $ | 109,500 | $ | (37,018 | ) | ||||||
DEDUCT: FV at the end of the prior FY for awards granted in any prior year that failed to meet applicable vesting conditions or were cancelled during FY | $ | — | $ | 154,171 | $ | — | $ | — | ||||||||
DEDUCT: change in actuarial present value of the accumulated benefit under all defined benefit and actuarial pension plans reported in SCT(1) | $ | 17,459 | $ | — | $ | — | $ | 42,232 | ||||||||
| Compensation Actually Paid (CAP) as defined by SEC Rule | $ | 1,292,075 | $ | 959,065 | $ | 1,490,490 | $ | 1,268,297 | ||||||||
| (1) | As discussed on page 23, the SERP Plan was frozen in 2006 and accordingly there are no changes related to service costs and prior service costs. |
| What am I voting on? |  | Advisory vote to approve named executive officers’ compensation (“say-on-pay-vote”). | |
| Voting recommendation: | | Our board of directors recommends a vote “For” approval, on a non-binding, advisory basis, of the compensation paid to our named executive officers. |
| Plan Category | Number of Securities to be issued upon exercise of outstanding equity awards (a) | Weighted-average exercise price of outstanding options and stock-settled stock appreciation rights (SSARs) (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in Column (a)) (c) | |||
| Equity compensation plans approved by stockholders: | ||||||
Long-Term Incentive Plans (1) | 578,508(2) | — | 1,003,267(3) | |||
| Non-Employee Director Compensation Plan | 171,962(4) | — | 434,415(5) | |||
| Equity compensation plans not approved by stockholders | — | — | — | |||
| Total | 750,470 | — | 1,437,682 |
| Plan Category | Number of Securities To be issued upon exercise of outstanding equity awards (a) | Weighted-average exercise price of outstanding options and stock-settled stock appreciation rights (SSARs) (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in Column (a)) (c) | |||||||||
| Equity compensation plans approved by stockholders: | ||||||||||||
Long-Term Incentive Plans(1) | 491,264 | (2) | $ | 18.14 | 838,209 | (3) | ||||||
| Director Compensation Plan | 197,804 | (4) | — | 235,221 | (5) | |||||||
| Equity compensation plans not approved by stockholders | — | — | — | |||||||||
| Total | 689,068 | $ | 18.14 | 1,073,430 | ||||||||
| (1) | Shares issuable pursuant to outstanding equity awards under our 2014 |
| (2) | This number |
| (3) | Any shares from the 2014 LTIP which are forfeited, expired, or cancelled are not made available for use under the 2021 LTIP. Any shares from the 2021 LTIP which are forfeited, expired, or |
| (4) | Shares deferred under the |
| (5) | Shares remaining under the |
| December 31, | ||||||||
| 2017 | 2016 | |||||||
| Audit Fees | $ | 529,643 | $ | 525,505 | ||||
| Audit-related | — | — | ||||||
| Tax | — | — | ||||||
| All other | 7,022 | 4,492 | ||||||
| Total | $ | 536,665 | $ | 529,997 | ||||
The Audit Committee’s responsibility is to monitor and review these processes. It is not The Audit Committee is comprised entirely of four independent directors as defined by the NYSE listing standards and Rule 10A-3 of the Securities Exchange Act of 1934. The Audit Committee is governed by a charter that enumerates its purpose and responsibilities, a copy of which is available on Havertys’ website at https://ir.havertys.com/corporate-governance-information/corporate-governance-documents. The Audit Committee met four times during 2023 and schedules its meetings to ensure •meets with management and the independent (continued) |
Based on these reviews and discussions, the Audit Committee recommended to the board that the audited The Audit Committee | ||||||||
 |  |  |  | |||||
Al Trujillo Chair | G. Thomas Hough | Vicki R. Palmer | ||||||
| Principal Accounting Fees Paid to Independent |
| Item | 2023 | 2022 | ||||||
| Audit Fees (a) | $ | 746,000 | $ | 732,000 | ||||
| Audit-Related Fees (b) | — | — | ||||||
| Tax Fees (c) | 27,752 | 24,000 | ||||||
| All Other Fees | — | — | ||||||
| Total Fees | $ | 773,752 | $ | 756,000 | ||||
| What am I voting on? | | Ratification of the | |
| Voting recommendation: | | Our board of directors recommends a vote |
| Ownership by Our Principal Stockholders |
Common Stock | Class A Common Stock | |||||||||||||||
| Name and address of Beneficial Holder | Amount and Nature of Beneficial Ownership | Percent of Class(1) | Amount and Nature of Beneficial Ownership | Percent of Class(1) | ||||||||||||
Blackrock, Inc. 50 Hudson Yards, New York, NY | 2,376,855 | (3) | 15.9 | % | — | — | ||||||||||
The Burton Partnership 614 W. Bay Street, Tampa, FL | 1,228,255 | (4) | 8.2 | % | — | — | ||||||||||
Dimensional Fund Advisors LP 6300 Bee Cave Road, Building One, Austin, TX | 1,251,604 | (5) | 8.4 | % | — | — | ||||||||||
The Vanguard Group 100 Vanguard Blvd., Malvern, PA | 1,088,133 | (6) | 7.3 | % | — | — | ||||||||||
Renaissance Technologies LLC 800 Third Avenue, New York, NY | 838,106 | (7) | 5.6 | % | — | — | ||||||||||
LSV Asset Management 155 N. Wacker Drive, Suite 4600, Chicago, IL | 762,070 | (8) | 5.1 | % | — | — | ||||||||||
Villa Clare Partners, L.P. 158 West Wesley Road, Atlanta, GA | — | — | 603,497 | (9) | 47.3 | % | ||||||||||
Rawson Haverty, Jr. PO Box 71175, Marietta, GA 30007-1175 | 15,000 | (11) | * | 186,959 | (10)(11) | 14.7 | % | |||||||||
Clarence H. Smith 780 Johnson Ferry Road, NE, Atlanta, GA | 107,723 | (12)(13) | * | 113,986 | (14) | 8.9 | % | |||||||||
| (1) | Based on 14,960,482 shares of our common stock outstanding on March 8, 2024. |
| (2) | Based on 1,275,395 shares of Class A common stock outstanding on March 8, 2024. |
| (3) | According to a Schedule 13G filed on January 22, 2024, BlackRock, Inc. holds sole voting power over 2,346,544 shares and sole dispositive power over 2,376,855 shares of common stock. |
| (4) | According to a Schedule 13G filed on June 1, 2016, The Burton Partnership, LP, The Burton Partnership (QP), LP and Donald W. Burton, General Partner, hold sole voting and dispositive power over 1,228,255 shares of common stock. |
| (5) | According to a Schedule 13G/A filed on February 9, 2024, Dimensional Fund Advisors LP (“Dimensional”) holds sole voting power over 1,233,482 shares and sole dispositive power over 1,251,604 shares of common stock. Dimensional is an investment advisor registered under Section 203 of the Investment Advisors Act of 1940 and furnishes investment advice to our investment companies registered under the Investment Company Act of 1940 and serves as investment manager or sub-advisor to certain other commingled funds, group trusts and separate accounts (the “Funds”). The shares reported above are owned by the Funds. Dimensional possesses investment and/or voting power over the shares held by the Funds. Dimensional disclaims beneficial ownership of these securities. |
| (6) | According to Schedule 13G/A filed on February 13, 2024, The Vanguard Group holds shared voting power over 9,848 shares, sole dispositive power over 1,066,841 shares of common stock and shared dispositive power over 21,292 shares. |
| (7) | According to Schedule 13G/A filed on February 13, 2024, Renaissance Technologies LLC holds sole voting and dispositive power over 838,106 shares of common stock. |
| (8) | According to a Schedule 13G filed on February 9, 2024, LSV Asset Management holds sole voting power over 439,770 shares and sole dispositive power over 762,070 shares of common stock. |
| (9) | According to a Schedule 13D/A filed on January 3, 2018, Vill Clare Partners, L.P. holds shared voting and dispositive power over 603,497 shares of Class A common stock. Clarence H. Smith is the manager of the Partnership’s general partner, West Wesley Associates, LLC. Mr. Smith disclaims beneficial ownership of these shares except to the extent of his partnership interest. |
| (10) | Mr. Haverty has direct ownership of 84,074 shares of Class A Common stock and sole dispositive and voting power over 65,140 shares of Class A common stock held by a limited liability company for which Mr. Haverty is the manager. The beneficial ownership disclosed also includes 8,728 shares of Class A common stock held in a trust for the benefit of Mr. Havertys child, for which he is co-trustee, as to which he disclaims beneficial ownership. |
| (1) | The Mary E. Haverty Foundation is a charitable organization, for which Mr. Haverty has sole voting power through a revocable proxy granted to him by the Foundation. Mr. Haverty has no pecuniary interest in the shares of the Foundation and disclaims any beneficial ownership in the Foundation’s shares. The amounts shown reflect 15,000 shares of common stock and 29,017 shares of Class A common stock, respectively. |
| (2) | Mr. Smith has direct ownership of 64,177 shares of common stock. The beneficial ownership disclosed includes 29,689 shares of common stock held by Mr. Smith’s wife, as to which he disclaims beneficial ownership. Mr. Smith also has 6,007 shares beneficially owned under the Havertys’ directors’ Deferred Plan. |
| (3) | This amount includes 7,850 shares of common stock held by a Georgia Limited Partnership in which Mr. Smith is a partner. Mr. Smith disclaims beneficial ownership of these shares except to the extent of his pecuniary interest in the partnership. |
| (4) | Mr. Smith has direct ownership of 112,036 shares of Class A common stock. The beneficial ownership disclosed includes 1,950 shares of Class A Common stock held by Mr. Smith’s wife, as to which he disclaims beneficial ownership. |
| Ownership by Our Directors and Management |
| Common Stock | Class A Common Stock | |||||||||||||||
Amount and Nature of Beneficial Ownership(1) | Percent of Class(2) | Amount and Nature of Beneficial Ownership | Percent of Class(3) | |||||||||||||
| Steven G. Burdette | 16,663 | * | 28,530 | 2.2 | % | |||||||||||
| J. Edward Clary | 46,238 | * | — | — | ||||||||||||
| Michael R. Cote | 6,862 | * | — | — | ||||||||||||
| L. Allison Dukes | 26,844 | * | — | — | ||||||||||||
| John L. Gill | 22,303 | * | 7,500 | * | ||||||||||||
| Richard B. Hare | 25,009 | * | — | — | ||||||||||||
| Rawson Haverty, Jr. | 15,000 | (4) | * | 186,959 | (4)(5) | 14.7 | % | |||||||||
| G. Thomas Hough | 30,026 | * | — | — | ||||||||||||
| Mylle H. Mangum | 67,816 | — | ||||||||||||||
| Vicki R. Palmer | 33,237 | * | — | — | ||||||||||||
| Derek G. Schiller | 10,179 | * | — | — | ||||||||||||
| Clarence H. Smith | 107,723 | (6)(7) | * | 717,483 | (8)(9) | 56.3 | % | |||||||||
| Al Trujillo | 65,405 | * | — | — | ||||||||||||
Directors and Executive Officers as a group (16 persons) | 592,417 | 4.0 | % | 940,472 | 73.7 | % | ||||||||||
| (1) | This column also includes shares of common stock beneficially owned under our directors’ Deferred Plan for the following individuals: Mr. Cote: 5,474; Mrs. Dukes – 26,844; Mr. Hough – 14,880; Ms. Mangum – 64,297; Mr. Schiller – 3,519; Mr. Smith – 6,007; and Mr. Trujillo – 3,519. |
| (2) | Based on 14,960,482 shares of our common stock outstanding on March 8, 2024. |
| (3) | Based on 1,275,395 shares of our Class A common stock outstanding on March 8, 2024. |
| (4) | The Mary E. Haverty Foundation is a charitable organization, for which Mr. Haverty has sole voting power through a revocable proxy granted to him by the Foundation. Mr. Haverty has no pecuniary interest in the shares of the Foundation and disclaims any beneficial ownership in the Foundation’s shares. The amounts shown reflect 15,000 shares of common stock and 29,017 shares of Class A common stock, respectively. |
| (5) | Mr. Haverty has direct ownership of 84,074 shares of Class A common stock. The beneficial ownership disclosed also includes 65,140 shares of Class A common stock held by a limited liability company for which Mr. Haverty is the manager and 8,728 shares of Class A common stock held in trust for the benefit of Mr. Haverty’s child, for which he is co-trustee, as to which he disclaims beneficial ownership. |
| (6) | Mr. Smith has direct ownership of 64,177 shares of common stock. The beneficial ownership disclosed includes 29,689 shares of common stock held by Mr. Smith’s wife, as to which he disclaims beneficial ownership. |
| (7) | This amount includes 6,007 shares of common stock held by a Georgia limited partnership in which Mr. Smith is a partner. Mr. Smith disclaims beneficial ownership of these shares except to the extent of his pecuniary interest in the partnership. |
| (8) | Mr. Smith has direct ownership of 112,036 shares of Class A common stock. The beneficial ownership disclosed includes 1,950 shares of Class A common stock held by Mr. Smith’s wife, as to which he disclaims beneficial ownership. |
| (9) | The amount also includes shares held by a partnership. According to a Schedule 13D filed on January 3, 2018, Villa Clare Partners, L.P. holds shared voting and dispositive power over 603,497 shares of Class A common stock. Mr. Smith is the manager of the Partnership’s general partner, West Wesley Associates, LLC. Mr. Smith disclaims beneficial ownership of these shares except to the extent of his partnership interest. |
| Board Voting Recommendation | Votes Required | Abstentions | Broker | ||||||
Election of Class A Common Stockholders Common Stockholders | FOR FOR | Plurality | No effect | No effect | |||||
Advisory Vote on Executive Compensation | FOR | Combined majority of votes cast in person or by proxy | No effect | No effect | |||||
| Ratification of the appointment of Grant Thornton LLP as our independent | FOR | Combined majority of votes cast in person or by proxy | No effect | No effect Discretionary voting by broker permitted |
| Stockholder Proposals for |
| Available Information |
| |||||
Jenny Hill Parker Senior Vice President, Finance and | |||||
Corporate Secretary March 27, 2024 Atlanta, Georgia | |||||
| Reconciliation of EBITDA |
| (in thousands) | Year Ended December 31, 2023 | |||
Income before income taxes, as reported(1) | $ | 72,711 | ||
interest income, net(1) | (5,508 | ) | ||
Depreciation(1) | 18,603 | |||
| EBITDA | 85,806 | |||
| (1) | These amounts are included in our Form 10-K for the year ended December 31, 2023. |
V33500-P05852 For Against Abstain ! ! ! ! ! ! HAVERTY FURNITURE COMPANIES, INC. 780 JOHNSON FERRY ROAD SUITE 800 ATLANTA, GA 30342 1. Election of Directors: Holders of Class A Common Stock The Board of Directors recommends a vote FOR the following proposals. 3. Ratification of the appointment of Grant Thornton LLP as our independent registered public accounting firm for 2024. Election of Directors Please date and sign exactly as name(s) appear(s) hereon. When signing as an attorney, executor, administrator, trustee or guardian, please give full title as such. If a corporation, please sign in full corporate name by President or other authorized person. If a partnership, please sign in partnership name by authorized person. For joint accounts, each joint owner should sign. HAVERTY FURNITURE COMPANIES, INC. CLASS A COMMON STOCK For Withhold For All All All Except The Board of Directors recommends a vote FOR its nominees. 2. Advisory Vote on Executive Compensation. L. Allison Dukes Rawson Haverty, Jr. Natalie B. Morhous Vicki R. Palmer Derek G. Schiller Al Trujillo To withhold authority to vote for any individual nominee(s), mark "For All Except" and write the number(s) of the nominee(s) on the line below. ! ! ! SCAN TO VIEW MATERIALS & VOTE w HAVERTYS CLASS A COMMON STOCK VOTE BY INTERNET - www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the website and follow the instructions to obtain your records and to create an electronic voting instruction form. ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via email or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. PLEASE BE SURE TO VOTE ALL CLASSES OF STOCK THAT YOU OWN. | ||||||||
