UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
SCHEDULE 14A | ||
(Rule 14a-101) | ||
Proxy Statement Pursuant to Section 14(a) of the | ||
Securities Exchange Act of 1934 | ||
(Amendment No. ) |
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Meritage Homes Corporation | ||
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By Order of the Board of Directors | |||||
C. Timothy White, Secretary |
Stockholder Proposals, Director Nominations and Other Items of Business | ||||||
General Information |
PROXY SUMMARY |
The Proposals |
The following four proposals will be considered at the Annual Meeting: | ||||
Proposal | Board Vote Recommendation | Page Number | ||
1 | Election of Directors | FOR Each Director | 6 | |
2 | Ratification of Independent Registered Public Accounting Firm | FOR | 7 | |
3 | Advisory Vote to Approve Compensation of our Named Executive Officers | FOR | 8 | |
4 | Adoption of our 2018 Stock Incentive Plan | FOR | 10 |
The following three proposals will be considered at the Annual Meeting: | ||||||||||||||||||||
Proposal | Board Vote Recommendation | Page Number | ||||||||||||||||||
1 | Election of Directors | FOR Each Nominee | 6 | |||||||||||||||||
2 | Ratification of Independent Registered Public Accounting Firm | FOR | 7 | |||||||||||||||||
3 | Advisory Vote to Approve Compensation of our Named Executive Officers | FOR | 8 |
PROPOSAL 1 | |||||
Election of Directors |
Name | Class | Age | Director Since | Independent | AC | CC | NGC | LC | ||||||||||||||||||||||||||||||||||||||||||
Steven J. Hilton | I | 58 | 1997 | No | ||||||||||||||||||||||||||||||||||||||||||||||
Raymond Oppel | I | 63 | 1997 | Yes | ü | ü | ||||||||||||||||||||||||||||||||||||||||||||
Dana C. Bradford | I | 55 | 2009 | Yes | ü | ü | ü | |||||||||||||||||||||||||||||||||||||||||||
Deborah Ann Henretta | I | 58 | 2016 | Yes | ü | |||||||||||||||||||||||||||||||||||||||||||||
P. Kelly Mooney (1) | I | 56 | 2020 | Yes | ||||||||||||||||||||||||||||||||||||||||||||||
Joseph Keough | II | 50 | 2019 | Yes | ü |
Name | Age | Director Since | Independent | AC | CC | NGC | LC | |||||||
Raymond Oppel | 61 | 1997 | Yes | C | ü | |||||||||
Steven J. Hilton | 56 | 1997 | No | |||||||||||
Richard T. Burke, Sr. | 75 | 2004 | Yes | ü | ||||||||||
Dana C. Bradford | 53 | 2009 | Yes | ü | ü | ü | ||||||||
Deb Henretta | 56 | 2016 | Yes | ü |
C | = | Committee Chair | AC | Audit Committee | NGC | Nominating/Governance Committee | |||||||||||||||||
ü | = | Member | CC | Executive Compensation Committee | LC | Land Committee |
PROXY SUMMARY |
PROPOSAL 2 | |||||
Ratification of Independent Registered Public Accounting Firm |
Summary of Fees | Summary of Fees | |||||||||||||||||||||||||||
2017 | 2016 | 2019 | 2018 | |||||||||||||||||||||||||
Audit fees | $ | 1,080,000 | $ | 1,151,500 | Audit fees | $ | 1,115,000 | $ | 1,229,000 | |||||||||||||||||||
Audit-related fees | — | — | Audit-related fees | — | — | |||||||||||||||||||||||
Tax fees | — | — | Tax fees | 9,600 | 29,600 | |||||||||||||||||||||||
All other fees | — | — | All other fees | 45,000 | — | |||||||||||||||||||||||
Total fees | $ | 1,080,000 | $ | 1,151,500 | Total fees | $ | 1,169,600 | $ | 1,258,600 |
PROPOSAL 3 | |||||
Advisory Vote to Approve Compensation of our Named Executive Officers |
Type | Form | Terms | |||||||||
Cash | Base Salary | Competitively market-based | |||||||||
Cash | Annual Incentive Compensation | Based on achievement of performance goals | |||||||||
Cash | Discretionary Bonuses | Based on specific individual achievements beyond those of the performance goals included in the annual incentive compensation calculations, subject to approval by the Executive Compensation Committee | |||||||||
Equity | Long-term Incentive Awards | Equity awards | |||||||||
Other | Limited Perquisites | Primarily |
PROXY SUMMARY |
Other Matters |
Corporate Governance |
— | Audit Committee | ||||
— | Executive Compensation Committee | ||||
— | Nominating/Governance Committee | ||||
— | Land Committee |
PROPOSAL 1: ELECTION OF DIRECTORS |
PROPOSAL 2: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
PROPOSAL 3: ADVISORY VOTE TO APPROVE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS |
Background on Proposal |
2019 | 2018 | % Change | ||||||||||||||||||
Home Closing Units | 9,267 | 8,531 | 8.6% | |||||||||||||||||
Home Closing Revenue | $ | 3,604,629 | $ | 3,474,712 | 3.7% | |||||||||||||||
Home Order Units | 9,616 | 8,089 | 18.9% | |||||||||||||||||
Home Order Value | $ | 3,683,502 | $ | 3,240,091 | 13.7% | |||||||||||||||
Backlog Units at period end | 2,782 | 2,433 | 14.3% | |||||||||||||||||
Backlog Value at period end | $ | 1,098,158 | $ | 1,015,918 | 8.1% | |||||||||||||||
Earnings Before Income Taxes | $ | 302,945 | $ | 283,254 | 7.0% | |||||||||||||||
Diluted Earnings per Common Share | $ | 6.42 | $ | 5.58 | 15.1% |
2017 | 2016 | % Change | ||||||||
Home Closing Units | 7,709 | 7,355 | 4.8% | |||||||
Home Closing Revenue | $ | 3,186,775 | $ | 3,003,426 | 6.1% | |||||
Home Order Units | 7,957 | 7,290 | 9.1% | |||||||
Home Order Value | $ | 3,296,788 | $ | 3,001,503 | 9.8% | |||||
Backlog Units at period end | 2,875 | 2,627 | 9.4% | |||||||
Backlog Value at period end | $ | 1,245,771 | $ | 1,135,758 | 9.7% | |||||
Pre-Tax Income | $ | 247,519 | $ | 218,060 | 13.5% | |||||
Diluted Earnings per Share (1) | $ | 3.41 | $ | 3.55 | (3.9)% |
PROPOSAL 3: ADVISORY VOTE TO APPROVE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS |
Effects of Advisory Vote |
Number of Shares Available For Future Awards Under 2006 Plan (does not include shares being requested under 2018 Plan) | Number of Options and Awards Outstanding | Weighted Average Remaining Term of Outstanding Options and Awards | Shares Awarded Under 2006 Plan |
597,164 | 1,383,122 | 2.99 | 4,752,836 |
SECURITY OWNERSHIP BY MANAGEMENT AND PRINCIPAL STOCKHOLDERS |
Name Of Beneficial Owner (1) | Position With The Company | Number Of Shares Owned | Right To Acquire By May 20, 2020 | Total Shares Beneficially Owned (2) | Percent Of Outstanding Shares (3) | |||||||||||||||||||||||||||
Steven J. Hilton | Director, Chairman and CEO | 461,260 | (4) | — | 461,260 | 1.2 | % | |||||||||||||||||||||||||
Raymond Oppel | Director | 29,000 | — | 29,000 | * | |||||||||||||||||||||||||||
Peter L. Ax | Director | 30,400 | — | 30,400 | * | |||||||||||||||||||||||||||
Gerald Haddock | Director | 12,000 | — | 12,000 | * | |||||||||||||||||||||||||||
Dana C. Bradford | Director | 59,000 | — | 59,000 | * | |||||||||||||||||||||||||||
Michael R. Odell | Director | 32,500 | — | 32,500 | * | |||||||||||||||||||||||||||
Deborah Ann Henretta | Director | 14,167 | — | 14,167 | * | |||||||||||||||||||||||||||
Joseph Keough | Director | — | — | — | ||||||||||||||||||||||||||||
P. Kelly Mooney | Director | — | — | — | ||||||||||||||||||||||||||||
Hilla Sferruzza | Executive Vice President and Chief Financial Officer | 27,778 | — | 27,778 | * | |||||||||||||||||||||||||||
C. Timothy White | Executive Vice President, General Counsel and Secretary | 40,554 | (5) | — | 40,554 | * | ||||||||||||||||||||||||||
Phillippe Lord | Executive Vice President and Chief Operating Officer | 40,078 | — | 40,078 | * | |||||||||||||||||||||||||||
Javier Feliciano | Executive Vice President and Chief People Officer | 15,179 | — | 15,179 | * | |||||||||||||||||||||||||||
All current directors and executive officers as a group (13 persons) | 761,916 | — | 761,916 | 2.0 | % |
Name Of Beneficial Owner (1) | Position With The Company | Number Of Shares Owned | Right To Acquire By May 20, 2018 | Total Shares Beneficially Owned (2) | Percent Of Outstanding Shares (3) | |||||||||
Steven J. Hilton | Director, Chairman and CEO | 1,637,868 | (4) | — | 1,637,868 | 4.0 | % | |||||||
Robert G. Sarver | Director | 200,659 | (5) | — | 200,659 | * | ||||||||
Raymond Oppel | Director | 65,000 | — | 65,000 | * | |||||||||
Peter L. Ax | Director | 42,500 | — | 42,500 | * | |||||||||
Richard T. Burke, Sr. | Director | 67,500 | — | 67,500 | * | |||||||||
Gerald Haddock | Director | 59,500 | (6) | — | 59,500 | * | ||||||||
Dana Bradford | Director | 53,000 | — | 53,000 | * | |||||||||
Michael R. Odell | Director | 34,000 | — | 34,000 | * | |||||||||
Deb Henretta | Director | 9,167 | — | 9,167 | * | |||||||||
Hilla Sferruzza | Executive Vice President and Chief Financial Officer | 15,925 | — | 15,925 | * | |||||||||
C. Timothy White | Executive Vice President, General Counsel and Secretary | 44,539 | (7) | — | 44,539 | * | ||||||||
Phillippe Lord | Executive Vice President and Chief Operating Officer | 6,040 | 11,197 | (8) | 17,237 | * | ||||||||
Javier Feliciano | Executive Vice President and Chief Human Resources Officer | 4,651 | — | 4,651 | * | |||||||||
All current directors and executive officers as a group (13 persons) | 2,240,349 | 11,197 | 2,251,546 | 5.5 | % |
SECURITY OWNERSHIP BY MANAGEMENT AND PRINCIPAL STOCKHOLDERS |
Shares Beneficially Owned | ||||||||||||||||||||||||||
Name of Other Beneficial Owners | Address Of Beneficial Owner | Number | Percent | |||||||||||||||||||||||
BlackRock, Inc. (1) | 55 East 52nd Street, New York, NY 10055 | 5,921,230 | 15.5 | % | ||||||||||||||||||||||
The Vanguard Group (2) | 100 Vanguard Boulevard, Malvern, PA 19355 | 4,215,349 | 11.0 | % | ||||||||||||||||||||||
Dimensional Fund Advisors LP (3) | 6300 Bee Cave Road, Austin, TX 78746 | 3,223,795 | 8.4 | % |
Shares Beneficially Owned | ||||||||
Name of Other Beneficial Owners | Address Of Beneficial Owner | Number | Percent | |||||
BlackRock, Inc. (1) | 55 East 52nd Street, New York, NY 10055 | 5,593,226 | 13.9 | % | ||||
FMR, LLC (2) | 245 Summer Street, Boston, MA 02210 | 3,663,704 | 9.1 | % | ||||
The Vanguard Group (3) | 100 Vanguard Boulevard, Malvern, PA 19355 | 3,426,070 | 8.5 | % | ||||
Dimensional Fund Advisors, LP (4) | 6300 Bee Cave Road, Austin, TX 78746 | 3,364,977 | 8.3 | % | ||||
Earnest Partners, LLC (5) | 1180 Peachtree Street NE, Suite 2300, Atlanta, GA 30309 | 2,080,250 | 5.2 | % |
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
Role of the Board of Directors |
Corporate Governance Principles and Practices |
Director Qualifications and Diversity |
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
Steven J. Hilton, | Mr. Hilton has been the Company’s chairman and Chief Executive Officer since May 2006. Mr. Hilton was the co-chairman and co-Chief Executive Officer of Meritage Homes Corporation from 1996 to May 2006. In 1985, Mr. Hilton co-founded Arizona-based Monterey Homes, the predecessor company to Meritage Homes Corporation. Under Mr. Hilton’s leadership, Monterey became publicly traded in 1996. Mr. Hilton received his Mr. Hilton has | |||||||
Raymond Oppel, | Mr. Oppel has been a director since December 1997. Mr. Oppel is a licensed real estate broker and currently is active as a private investor in real estate development. He was the co-founder, chairman and Chief Executive Officer of The Oppel Jenkins Group, a regional homebuilder in Texas and New Mexico, which was purchased in 1995 by public homebuilder KB Home. Mr. Oppel has | |||||||
Dana C. Bradford, | Mr. Bradford has been a director since August 2009. Mr. Bradford cofounded and is Chairman and Chief Executive Officer of Mr. Bradford earned a | |||||||
Ms. Henretta has been a director since March 2016. Ms. Henretta retired from Ms. Henretta is a Partner at G100 Companies where she assisted in establishing a New Director Board Excellence Program that includes director education on board oversight, governance including digital transformation and cyber security. Ms. Henretta graduated summa cum laude from St. Bonaventure University with a | ||||||||
P. Kelly Mooney, 56 | Ms. Mooney has been a director since March 2020. Ms. Mooney was previously a co-owner of Resource/Ammirati, a digital marketing firm, and served in various roles including Chief Executive Officer from January 2011 to September 2017; President from June 2001 to January 2011; and Chief Experience Officer and Director of Intelligence from March 1995 to May 2001. During her tenure, she led the development and delivery of integrated marketing, digital experience, ecommerce, mobile and innovation consulting services and was also accountable for Human Resources, IT, Finance and Operations. In 2016, Resource/Ammirati was sold to IBM to become part of IBM iX, one of the world’s largest digital consultancy agencies. Ms. Mooney joined IBM iX in September 2017 and served as Chief Experience Officer until May 2018. Ms. Mooney also serves as a board member of Sally Beauty Holdings, Inc. (NYSE:SBH), an international specialty retailer and distributor of professional beauty supplies, and J.Jill, Inc. (NYSE:JILL), a nationally recognized women’s apparel brand. Ms. Mooney has a bachelor of science in Industrial Design from The Ohio State University. | |||||||
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
Peter L. Ax, | Mr. Ax has been a director since September 2000 and is the Company's lead independent director. He is the Chief Executive Officer of UpscriptHealth, a Mr. Ax holds an MBA from the Wharton School at the University of Pennsylvania, a | |||||||
Gerald Haddock, | Mr. Haddock has been a director since January 2005. Mr. Haddock is the founder of Haddock Enterprises, LLC and formerly served as president and Chief Executive Officer of Crescent Real Estate Equities, a diversified real estate investment trust. Mr. Haddock received his Bachelor of business administration and | |||||||
Michael R. Odell, | Mr. Odell has been a director since December 2011. Mr. Odell started his career as a CPA with Deloitte & Touche LLP. Mr. Odell holds an | |||||||
Joseph Keough, 50 | Mr. Keough has been a director since June 2019. He currently serves as chairman and chief executive officer of Wood Partners, one of the nation's largest multifamily real estate companies. Before joining Wood Partners, Mr. Keough was chief operating officer of Fuqua Capital, the office for the Atlanta-based Fuqua family. Mr. Keough had also been a senior vice president in the office and multifamily division of Cousins Properties, a publicly traded REIT, as well as a Principal at The Boston Consulting Group. Mr. Keough is also on the board of directors of Interface, Inc. (NASDAQ: IFSIA). Mr. Keough earned his MBA from Harvard Business School and received his bachelor degree in finance and economics from Babson College. Mr. Keough brings a 23-year track record of strong business leadership, deep understanding of real estate and first-hand experience driving organizational transformation. | |||||||
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
Director Independence |
Board Leadership Structure |
CEO and Management |
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
Risk Oversight |
The Board and Board Committees |
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
Board of Directors | Audit Committee | Executive Compensation Committee | Nominating/ Governance Committee | Land Committee | ||||||||||||||||||||||||||||||||||
Steven J. Hilton* | ||||||||||||||||||||||||||||||||||||||
Peter L. Ax + | C | ü | ü | |||||||||||||||||||||||||||||||||||
Raymond Oppel | ü | ü | ||||||||||||||||||||||||||||||||||||
Gerald Haddock | C | ü | ||||||||||||||||||||||||||||||||||||
Dana C. Bradford | ü | ü | ü | |||||||||||||||||||||||||||||||||||
Michael R. Odell | C | |||||||||||||||||||||||||||||||||||||
Deborah Ann Henretta | ü | |||||||||||||||||||||||||||||||||||||
Joseph Keough | ü | |||||||||||||||||||||||||||||||||||||
P. Kelly Mooney (1) | ||||||||||||||||||||||||||||||||||||||
Number of Meetings | 7 | 7 | 5 | 23 |
Board of Directors | Audit Committee | Executive Compensation Committee | Nominating/ Governance Committee | Land Committee | ||||
Steven J. Hilton* | ||||||||
Peter L. Ax + | C | ü | ü | |||||
Raymond Oppel | C | ü | ||||||
Richard T. Burke, Sr. | ü | |||||||
Gerald Haddock | C | ü | ||||||
Dana Bradford | ü | ü | ü | |||||
Michael R. Odell | ü | |||||||
Robert G. Sarver | ||||||||
Deb Henretta | ü | |||||||
Number of Meetings | 8 | 7 | 4 | 12 |
* | = | Chairman of the Board | ||||||
ü | = | Member | ||||||
C | = | Committee Chair | ||||||
+ | = | Lead Independent Director |
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS |
Code of Ethics |
Communications with the Board of Directors |
COMPENSATION DISCUSSION AND ANALYSIS |
Executive Summary |
COMPENSATION DISCUSSION AND ANALYSIS |
Compensation Philosophy and Objectives |
l | l | |||||||||||||||||||
l | l | |||||||||||||||||||
l | l | Pulte Group, Inc. | ||||||||||||||||||
l | l | Taylor Morrison Home Corporation | ||||||||||||||||||
l | KB Home | l | Toll Brothers, Inc. | |||||||||||||||||
l | l | TRI | ||||||||||||||||||
l | l | |||||||||||||||||||
l | M.D.C. Holdings, Inc. |
* | William Lyon Homes was acquired by Taylor Morrison Home Corporation in the first quarter of 2020. |
COMPENSATION DISCUSSION AND ANALYSIS |
COMPENSATION DISCUSSION AND ANALYSIS |
Compensation Best Practices |
WE DO | WE DO NOT | |||||||||||||||||||||||||||||||
a | Pay for performance by requiring a significant portion of the total compensation of our NEOs be determined based on performance tied to strategic objectives. | r | Provide perquisites for our NEOs other than those limited to auto allowance, reimbursement of certain insurance premiums and other limited benefits. | |||||||||||||||||||||||||||||
a | Have executive | r | Reprice or replace stock options and other equity awards. | |||||||||||||||||||||||||||||
a | Have a clawback policy for our NEOs requiring the recoupment of incentive bonuses in the event of a restatement of financial results resulting from willful misconduct or gross negligence of the applicable NEO. | r | Allow hedging. | |||||||||||||||||||||||||||||
a | Engage an independent compensation consultant | r | Allow pledging, subject to | |||||||||||||||||||||||||||||
a | r | Provide tax gross-ups |
COMPENSATION DISCUSSION AND ANALYSIS |
Independent Compensation Consultant |
Compensation Program |
COMPENSATION DISCUSSION AND ANALYSIS |
Security Ownership Requirements |
COMPENSATION DISCUSSION AND ANALYSIS |
Equity-Based Awards |
COMPENSATION DISCUSSION AND ANALYSIS |
Employment Agreements in Effect for |
Named Executive Officer | ||||||||||||||||||||
Steven J. Hilton | Hilla Sferruzza | C. Timothy White | Phillippe Lord | Javier Feliciano | ||||||||||||||||
Base Salary | $ | 1,000,000 | $ | 525,000 | $ | 525,000 | $ | 550,000 | $ | 320,000 |
Named Executive Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Steven J. Hilton | Hilla Sferruzza | C. Timothy White | Phillippe Lord | Javier Feliciano | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Base Salary | $ | 1,000,000 | $ | 575,000 | $ | 550,000 | $ | 650,000 | $ | 340,000 |
Adjusted EBITDA | Performance as % of Target | Payout as % of Target Payout (1) | Number of Home Closings | Performance as % of Target | Payout as % of Target Payout (1) | Customer Satisfaction Rating | Performance as % of Target | Payout as % of Target Payout (1) | ||||||||||||||||||||||||||||||||||||||||||
Maximum | 115.0 | % | 200 | % | Maximum | 115.0 | % | 200 | % | Maximum | 102.25 | % | 200 | % | ||||||||||||||||||||||||||||||||||||
Target | 100.0 | % | 100 | % | Target | 100.0 | % | 100 | % | Target | 100.00 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
Threshold | 90.0 | % | 50 | % | Threshold | 85.0 | % | 50 | % | Threshold | 97.75 | % | 50 | % | ||||||||||||||||||||||||||||||||||||
Below Threshold | <90.0% | 0 | % | Below Threshold | <85.0% | 0 | % | Below Threshold | <97.75% | 0 | % |
Adjusted EBITDA | Performance as % of Goal | Payout as % of Target Payout (1) | ||||
Maximum | 114.9 | % | (2 | ) | ||
Target | 107.7 | % | 100 | % | ||
Intermediate (Goal) | 100.0 | % | 50 | % | ||
Threshold | 90.0 | % | 25 | % | ||
Below Threshold | <90.0% | — | % |
Number of Home Closings | Performance as % of Goal | Payout as % of Target Payout (1) | ||||
Maximum | 112.8 | % | (2 | ) | ||
Target | 107.7 | % | 100 | % | ||
Intermediate (Goal) | 100.0 | % | 50 | % | ||
Threshold | 90.0 | % | 25 | % | ||
Below Threshold | <90.0% | — | % |
Customer Satisfaction Rating | Performance as % of Goal | Payout as % of Target Payout (1) | ||||
Maximum | 112.5 | % | (2 | ) | ||
Target (Goal) | 100.0 | % | 100 | % | ||
Intermediate | 93.8 | % | 50 | % | ||
Threshold | 87.5 | % | 25 | % | ||
Below Threshold | <87.5% | — | % |
Relative ROA | Performance as % of Target | Shares Awarded as % of Target Payout (1) | Relative TSR | Peer Group Percentile | Shares Awarded as % of Target Payout (1) | |||||||||||||||||||||||||||
Maximum | 75.0 | % | 150 | % | Maximum | 75.0 | % | 150 | % | |||||||||||||||||||||||
Target | 50.0 | % | 100 | % | Target | 50.0 | % | 100 | % | |||||||||||||||||||||||
Threshold | 25.0 | % | 50 | % | Threshold | 25.0 | % | 50 | % | |||||||||||||||||||||||
Below Threshold | <25.0% | 0 | % | Below Threshold | <25.0% | 0 | % |
EPS | Performance as % of Goal | Shares Awarded as % of Target Payout (1) | ||||
Maximum | 114.9 | % | 150 | % | ||
Target | 107.7 | % | 125 | % | ||
Intermediate (Goal) | 100.0 | % | 100 | % | ||
Threshold | 90.0 | % | 50 | % | ||
Below Threshold | <90.0% | — | % |
ROA | Performance as % of Goal | Shares Awarded as % of Target Payout (1) | ||||
Maximum | 112.8 | % | 150 | % | ||
Target | 107.7 | % | 125 | % | ||
Intermediate (Goal) | 100.0 | % | 100 | % | ||
Threshold | 90.0 | % | 50 | % | ||
Below Threshold | <90.0% | — | % |
Relative TSR | Peer Group Percentile | Shares Awarded as % of Target Payout (1) | ||||
Maximum | 80.0 | % | 150 | % | ||
Target | 65.0 | % | 125 | % | ||
Intermediate (Goal) | 50.0 | % | 100 | % | ||
Threshold | 40.0 | % | 50 | % | ||
Below Threshold | <40.0% | — | % |
COMPENSATION DISCUSSION AND ANALYSIS |
COMPENSATION DISCUSSION AND ANALYSIS |
Discussion of NEO Compensation |
Named Executive Officer | ||||||||||||||||||||
Steven J. Hilton | Hilla Sferruzza | C. Timothy White | Phillippe Lord | Javier Feliciano | ||||||||||||||||
Base Salary | $ | 1,000,000 | $ | 525,000 | $ | 525,000 | $ | 550,000 | $ | 320,000 |
Named Executive Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Steven J. Hilton | Hilla Sferruzza | C. Timothy White | Phillippe Lord | Javier Feliciano | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Base Salary | $ | 1,000,000 | $ | 575,000 | $ | 550,000 | $ | 650,000 | $ | 340,000 |
Named Executive Officer | Named Executive Officer | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Results | Steven J. Hilton | Hilla Sferruzza | C. Timothy White | Phillippe Lord | Javier Feliciano | Actual Results | Steven J. Hilton | Hilla Sferruzza | C. Timothy White | Phillippe Lord | Javier Feliciano | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA (60%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Results (in millions) (2) | $ | 333,178 | $ | 333,178 | $ | 333,178 | $ | 333,178 | $ | 333,178 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Performance Level (in millions) (2) | ≥ | $ | 312,262 | $ | 312,262 | $ | 312,262 | $ | 312,262 | $ | 312,262 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA (45%) | Adjusted EBITDA (45%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Results (in thousands) (2) | Actual Results (in thousands) (2) | $ | 433,742 | $ | 433,742 | $ | 433,742 | $ | 433,742 | $ | 433,742 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Performance Level (in thousands) (2) | Target Performance Level (in thousands) (2) | ≥ | $ | 330,871 | $ | 330,871 | $ | 330,871 | $ | 330,871 | $ | 330,871 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Bonus $ | $ | 1,500,000 | $ | 315,000 | $ | 360,000 | $ | 660,000 | $ | 120,000 | Target Bonus $ | $ | 1,125,000 | $ | 323,438 | $ | 270,000 | $ | 585,000 | $ | 95,625 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NEO Payout % (1) | 200.0 | % | 200.0 | % | 200.0 | % | 170.5 | % | 133.0 | % | NEO Payout % (1) | 200.0 | % | 200.0 | % | 200.0 | % | 200.0 | % | 200.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NEO Payout $ | $ | 3,000,000 | $ | 630,000 | $ | 720,000 | $ | 1,125,300 | $ | 159,600 | NEO Payout $ | $ | 2,250,000 | $ | 646,875 | $ | 540,000 | $ | 1,170,000 | $ | 191,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Home Closings (30%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Home Closings (45%) | Number of Home Closings (45%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Results (2) | 7,709 | 7,709 | 7,709 | 7,709 | 7,709 | Actual Results (2) | 9,267 | 9,267 | 9,267 | 9,267 | 9,267 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Performance Level (2) | ≥ | 7,723 | 7,723 | 7,723 | 7,723 | 7,723 | Target Performance Level (2) | ≥ | 8,472 | 8,472 | 8,472 | 8,472 | 8,472 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Bonus $ | $ | 750,000 | $ | 157,500 | $ | 180,000 | $ | 330,000 | $ | 60,000 | Target Bonus $ | $ | 1,125,000 | $ | 323,438 | $ | 270,000 | $ | 585,000 | $ | 95,625 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NEO Payout % (1) | 98.7 | % | 98.7 | % | 98.7 | % | 98.7 | % | 98.7 | % | NEO Payout % (1) | 162.5 | % | 162.5 | % | 162.5 | % | 162.5 | % | 162.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NEO Payout $ | $ | 740,489 | $ | 155,503 | $ | 177,717 | $ | 325,815 | $ | 59,239 | NEO Payout $ | $ | 1,828,678 | $ | 525,745 | $ | 438,883 | $ | 950,913 | $ | 155,438 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Satisfaction Rating (10%) | Customer Satisfaction Rating (10%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Results (2) | 90.0 | 90.0 | 90.0 | 90.0 | 90.0 | Actual Results (2) | 92.8 | 92.8 | 92.8 | 92.8 | 92.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Performance Level (2) | ≥ | 80.0 | 80.0 | 80.0 | 80.0 | 80.0 | Target Performance Level (2) | ≥ | 89.0 | 89.0 | 89.0 | 89.0 | 89.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Bonus $ | $ | 250,000 | $ | 52,500 | $ | 60,000 | $ | 110,000 | $ | 20,000 | Target Bonus $ | $ | 250,000 | $ | 71,875 | $ | 60,000 | $ | 130,000 | $ | 21,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NEO Payout % (1) | 200.0 | % | 200.0 | % | 200.0 | % | 170.5 | % | 133.0 | % | NEO Payout % (1) | 200.0 | % | 200.0 | % | 200.0 | % | 200.0 | % | 200.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NEO Payout $ | $ | 500,000 | $ | 105,000 | $ | 120,000 | $ | 187,550 | $ | 26,600 | NEO Payout $ | $ | 500,000 | $ | 143,750 | $ | 120,000 | $ | 260,000 | $ | 42,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total NEO Payout $ | $ | 4,240,489 | $ | 890,503 | $ | 1,017,717 | $ | 1,638,665 | $ | 245,439 | Total NEO Payout $ | $ | 4,578,678 | $ | 1,316,370 | $ | 1,098,883 | $ | 2,380,913 | $ | 389,188 |
Performance Measure | 2017 | 2016 | Performance Measure | 2019 | 2018 | 2017 | ||||||||||||||||||||||
Adjusted EBITDA (in millions) | ||||||||||||||||||||||||||||
Adjusted EBITDA (in thousands) | Adjusted EBITDA (in thousands) | |||||||||||||||||||||||||||
Actual Results | $ | 333,178 | $ | 298,069 | Actual Results | $ | 433,742 | $ | 380,859 | $ | 333,178 | |||||||||||||||||
Target Performance Level | ≥ | $ | 312,262 | $ | 290,898 | Target Performance Level | ≥ | $ | 330,871 | $ | 359,834 | $ | 312,262 | |||||||||||||||
Number of Home Closings | Number of Home Closings | |||||||||||||||||||||||||||
Actual Results | 7,709 | 7,355 | Actual Results | 9,267 | 8,531 | 7,709 | ||||||||||||||||||||||
Target Performance Level | ≥ | 7,723 | 6,995 | Target Performance Level | ≥ | 8,472 | 8,480 | 7,723 | ||||||||||||||||||||
Customer Satisfaction Rating | Customer Satisfaction Rating | |||||||||||||||||||||||||||
Actual Results | 90.0 | 88.9 | Actual Results | 92.8 | 91.9 | 90.0 | ||||||||||||||||||||||
Target Performance Level | ≥ | 80.0 | 80.0 | Target Performance Level | ≥ | 89.0 | 80.0 | 80.0 |
COMPENSATION DISCUSSION AND ANALYSIS |
Name and Principal Position | Approximate Award Fair Value (at Intermediate level) ($) | Below Threshold (Shares) (#) | Threshold (Shares) (#) | Intermediate (Shares) (#)(1) | Target (Shares) (#) | Stretch Target (Maximum) (Shares) (#) | ||||||||
Steven J. Hilton, Chairman and CEO | $ | 1,000,000 | — | 14,663 | 29,326 | 36,658 | 43,989 | |||||||
Hilla Sferruzza, EVP and CFO | $ | 393,750 | — | 5,774 | 11,547 | 14,434 | 17,321 | |||||||
C. Timothy White, EVP, General Counsel and Secretary | $ | 425,000 | — | 6,232 | 12,463 | 15,579 | 18,695 | |||||||
Phillippe Lord, EVP and COO | $ | 625,000 | — | 9,164 | 18,328 | 22,910 | 27,492 | |||||||
Javier Feliciano, EVP and CHRO | $ | 184,000 | — | 2,698 | 5,396 | 6,745 | 8,094 |
Name | Approximate Award Fair Value (at Target level) ($) | Below Threshold (Shares) (#) | Threshold (Shares) (#) | Target (Shares) (#)(1) | Maximum (Shares) (#) | |||||||||||||||
Steven J. Hilton | $ | 1,750,000 | — | 20,923 | 41,846 | 62,769 | ||||||||||||||
Hilla Sferruzza | $ | 575,000 | — | 6,875 | 13,749 | 20,624 | ||||||||||||||
C. Timothy White | $ | 425,000 | — | 5,081 | 10,162 | 15,243 | ||||||||||||||
Phillippe Lord | $ | 975,000 | — | 11,657 | 23,314 | 34,971 | ||||||||||||||
Javier Feliciano | $ | 212,500 | — | 2,541 | 5,081 | 7,622 |
Name and Principal Position | Approximate Award Fair Value ($) | Shares (#)(1) | ||||
Steven J. Hilton, Chairman and CEO | $ | 1,000,000 | 29,326 | |||
Hilla Sferruzza, EVP and CFO | $ | 393,750 | 11,547 | |||
C. Timothy White, EVP, General Counsel and Secretary | $ | 425,000 | 12,463 | |||
Phillippe Lord, EVP and COO | $ | 625,000 | 18,328 | |||
Javier Feliciano, EVP and CHRO | $ | 184,000 | 5,396 |
COMPENSATION DISCUSSION AND ANALYSIS |
Revised Base Salary | ||||||||
Hilla Sferruzza | $ | |||||||
Phillippe Lord | $700,000 | |||||||
C. Timothy White | $ | |||||||
Javier Feliciano | $ |
Adjusted EBITDA | Performance as % of Goal | Payout as % of Target Payout (1) | ||||
Maximum | 115.0 | % | 200 | % | ||
Target | 100.0 | % | 100 | % | ||
Threshold | 85.0 | % | 50 | % | ||
Below Threshold | <85.0% | — | % |
Number of Home Closings | Performance as % of Goal | Payout as % of Target Payout (1) | ||||
Maximum | 110.0 | % | 200 | % | ||
Target | 100.0 | % | 100 | % | ||
Threshold | 90.0 | % | 50 | % | ||
Below Threshold | <90.0% | — | % |
Customer Satisfaction Rating | Performance as % of Goal | Payout as % of Target Payout (1) | ||||
Maximum | 112.5 | % | 200 | % | ||
Target | 100.0 | % | 100 | % | ||
Threshold | 93.8 | % | 50 | % | ||
Below Threshold | <93.8% | — | % |
Executive Officer | 2020 Annual Target Cash Incentive Compensation | 2020 Annual Target Performance Shares Award | ||||||||||||
Hilla Sferruzza | $781,250 | $625,000 | ||||||||||||
Phillippe Lord | $1,400,000 | $1,050,000 | ||||||||||||
C. Timothy White | $610,909 | $432,727 | ||||||||||||
Javier Feliciano | $218,750 | $218,750 |
Name | Revised Target Dollar Value of Single Metric Performance-Based Award | Revised Target Dollar Value of Three Metric Performance-Based Award (1) | Total Revised Target Dollar Value of Equity Awards | |
Hilla Sferruzza | $575,000 | $575,000 | $1,150,000 | |
Phillippe Lord | $975,000 | $975,000 | $1,950,000 | |
Javier Feliciano | $212,500 | $212,500 | $425,000 |
EPS | Performance as % of Goal | Shares Awarded as % of Target Payout (1) | ||||
Maximum | 115.1 | % | 150.0 | % | ||
Target | 100.0 | % | 100.0 | % | ||
Threshold | 85.1 | % | 50.0 | % | ||
Below Threshold | <85.1% | — | % |
ROA | Performance as % of Goal | Shares Awarded as % of Target Payout (1) | ||||
Maximum | 115.0 | % | 150.0 | % | ||
Target | 100.0 | % | 100.0 | % | ||
Threshold | 85.0 | % | 50.0 | % | ||
Below Threshold | <85.0% | — | % |
Relative TSR | Peer Group Percentile | Shares Awarded as % of Target Payout (1) | ||||
Maximum | 80.0 | % | 150.0 | % | ||
Target | 50.0 | % | 100.0 | % | ||
Threshold | 30.0 | % | 50.0 | % | ||
Below Threshold | <30.0% | — | % |
Name | Target Value of Performance Share Award (1) | Value of Restricted Stock Unit Award | Total Value of Additional Long-Term Incentive Award | |||
Steven J. Hilton | $750,000 | $750,000 | $1,500,000 |
EXECUTIVE COMPENSATION COMMITTEE REPORT |
THE EXECUTIVE COMPENSATION COMMITTEE | |||||
Michael R. Odell—ChairRaymond Oppel Dana C. Bradford |
COMPENSATION OF OFFICERS AND DIRECTORS |
Name and Principal Position | Year | Salary ($) | Bonus ($) (2) | Stock Awards ($) (3) | Non-Equity Incentive Plan Compensation ($) (4) | All Other Compensation ($) (5) | Total ($) | ||||||||||||||||||||||||||||||||||||||||
Steven J. Hilton, | 2019 | 1,000,000 | — | 3,554,610 | 4,578,678 | 62,303 | 9,195,591 | ||||||||||||||||||||||||||||||||||||||||
Chairman and CEO (1) | 2018 | 1,000,000 | — | 3,480,836 | 3,379,404 | 39,943 | 7,900,183 | ||||||||||||||||||||||||||||||||||||||||
2017 | 1,000,000 | — | 1,934,928 | 4,240,489 | 48,310 | 7,223,727 | |||||||||||||||||||||||||||||||||||||||||
Hilla Sferruzza, | 2019 | 575,000 | — | 1,167,910 | 1,316,370 | 53,040 | 3,112,320 | ||||||||||||||||||||||||||||||||||||||||
EVP and CFO | 2018 | 575,000 | — | 1,139,038 | 971,579 | 48,600 | 2,734,217 | ||||||||||||||||||||||||||||||||||||||||
2017 | 525,000 | — | 761,872 | 890,503 | 40,596 | 2,217,971 | |||||||||||||||||||||||||||||||||||||||||
C. Timothy White, | 2019 | 550,000 | 100,000 | 863,213 | 1,098,883 | 48,114 | 2,660,210 | ||||||||||||||||||||||||||||||||||||||||
EVP, General Counsel | 2018 | 550,000 | — | 841,879 | 811,057 | 55,936 | 2,258,872 | ||||||||||||||||||||||||||||||||||||||||
and Secretary | 2017 | 525,000 | — | 822,308 | 1,017,717 | 57,172 | 2,422,197 | ||||||||||||||||||||||||||||||||||||||||
Phillippe Lord, | 2019 | 650,000 | — | 1,980,406 | 2,380,913 | 63,154 | 5,074,473 | ||||||||||||||||||||||||||||||||||||||||
EVP and COO | 2018 | 650,000 | — | 1,931,317 | 1,757,290 | 70,259 | 4,408,866 | ||||||||||||||||||||||||||||||||||||||||
2017 | 550,000 | — | 1,209,284 | 1,638,665 | 55,171 | 3,453,120 | |||||||||||||||||||||||||||||||||||||||||
Javier Feliciano, | 2019 | 340,000 | — | 431,604 | 389,188 | 50,089 | 1,210,881 | ||||||||||||||||||||||||||||||||||||||||
EVP and CPO | 2018 | 336,295 | — | 420,983 | 287,249 | 47,730 | 1,092,257 | ||||||||||||||||||||||||||||||||||||||||
2017 | 320,000 | — | 356,027 | 245,439 | 31,812 | 953,278 |
Name | Health and Insurance Premiums ($) (1) | 401(k) Match ($) | Car Allowance ($) | Other ($)(2) | Total All Other Compensation ($) | |||||||||||||||||||||||||||
Steven J. Hilton | 53,062 | 8,400 | — | 841 | 62,303 | |||||||||||||||||||||||||||
Hilla Sferruzza | 44,066 | 8,400 | — | 574 | 53,040 | |||||||||||||||||||||||||||
C. Timothy White | 25,314 | 8,400 | 14,400 | — | 48,114 | |||||||||||||||||||||||||||
Phillippe Lord | 39,594 | 8,400 | 14,400 | 760 | 63,154 | |||||||||||||||||||||||||||
Javier Feliciano | 40,728 | 8,400 | — | 961 | 50,089 |
Name and Principal Position | Year | Salary ($) | Bonus ($) (2) | Stock Awards ($) (3) | Non-Equity Incentive Plan Compensation ($) (4) | All Other Compensation ($) (5) | Total ($) | |||||||||||||
Steven J. Hilton, | 2017 | 1,000,000 | — | 1,934,928 | 4,240,489 | 48,310 | 7,223,727 | |||||||||||||
Chairman and CEO (1) | 2016 | 1,000,000 | — | 2,034,964 | 4,285,957 | 36,814 | 7,357,735 | |||||||||||||
2015 | 1,000,000 | — | 2,026,861 | 2,470,185 | 34,072 | 5,531,118 | ||||||||||||||
Hilla Sferruzza, * | 2017 | 525,000 | — | 761,872 | 890,503 | 40,596 | 2,217,971 | |||||||||||||
EVP and CFO | 2016 | 389,562 | 74,375 | 648,674 | 546,459 | 43,808 | 1,702,878 | |||||||||||||
C. Timothy White, | 2017 | 525,000 | — | 822,308 | 1,017,717 | 57,172 | 2,422,197 | |||||||||||||
EVP, General Counsel | 2016 | 525,000 | — | 864,848 | 1,028,630 | 55,753 | 2,474,231 | |||||||||||||
and Secretary | 2015 | 525,000 | — | 861,371 | 592,844 | 52,409 | 2,031,624 | |||||||||||||
Phillippe Lord, | 2017 | 550,000 | — | 1,209,284 | 1,638,665 | 55,171 | 3,453,120 | |||||||||||||
EVP and COO | 2016 | 550,000 | — | 1,119,239 | 1,464,349 | 54,894 | 3,188,482 | |||||||||||||
2015 | 437,500 | 100,000 | 683,680 | 789,604 | 46,807 | 2,057,591 | ||||||||||||||
Javier Feliciano, | 2017 | 320,000 | — | 356,027 | 245,439 | 31,812 | 953,278 | |||||||||||||
EVP and CHRO | 2016 | 320,000 | 160,000 | — | — | 24,364 | 504,364 | |||||||||||||
2015 | 46,667 | (6) | 75,000 | 353,300 | — | 1,219 | 476,186 |
COMPENSATION OF OFFICERS AND DIRECTORS |
Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (2) | All Other Stock Awards: Number of Shares of Stock or Units (#) (2) | Grant Date Fair Value of Stock and Option Awards ($) (3) | ||||||||||||||||||||||||||||||||||||||||
Name | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||||||||||||||||||||||||||
Steven J Hilton | 3/20/2019 | 41,846 | 1,750,000 | |||||||||||||||||||||||||||||||||||||||||
3/20/2019 | 20,923 | 41,846 | 62,769 | 1,804,610 | ||||||||||||||||||||||||||||||||||||||||
1,250,000 | 2,500,000 | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Hilla Sferruzza | 3/20/2019 | 13,749 | 574,983 | |||||||||||||||||||||||||||||||||||||||||
3/20/2019 | 6,875 | 13,749 | 20,624 | 592,927 | ||||||||||||||||||||||||||||||||||||||||
359,375 | 718,750 | 1,437,500 | ||||||||||||||||||||||||||||||||||||||||||
C. Timothy White | 3/20/2019 | 10,162 | 424,975 | |||||||||||||||||||||||||||||||||||||||||
3/20/2019 | 5,081 | 10,162 | 15,243 | 438,238 | ||||||||||||||||||||||||||||||||||||||||
300,000 | 600,000 | 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||
Phillippe Lord | 3/20/2019 | 23,314 | 974,991 | |||||||||||||||||||||||||||||||||||||||||
3/20/2019 | 11,657 | 23,314 | 34,971 | 1,005,415 | ||||||||||||||||||||||||||||||||||||||||
650,000 | 1,300,000 | 2,600,000 | ||||||||||||||||||||||||||||||||||||||||||
Javier Feliciano | 3/20/2019 | 5,081 | 212,487 | |||||||||||||||||||||||||||||||||||||||||
3/20/2019 | 2,541 | 5,081 | 7,622 | 219,117 | ||||||||||||||||||||||||||||||||||||||||
106,250 | 212,500 | 425,000 |
Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plan Awards | ||||||||||||||||||||||||||||||||||||||||||||
Name | Number of Shares or Units of Stock that Have Not Vested (#) | Market Value of Shares of Units of Stock that Have Not Vested ($) (1) | Number of Unearned Shares, Units or Other Rights that Have Not Vested (#) (8) | Market or Payout Value of Unearned Shares, Units or Other Rights that Have Not Vested ($) (1) | ||||||||||||||||||||||||||||||||||||||||
Steven J Hilton | 167,795 | (2) (7) | $ | 10,253,952 | 71,537 | $ | 4,371,626 | |||||||||||||||||||||||||||||||||||||
Hilla Sferruzza | 53,864 | (3) (7) | $ | 3,291,629 | 30,049 | $ | 1,836,294 | |||||||||||||||||||||||||||||||||||||
C. Timothy White | 48,010 | (4) (7) | $ | 2,933,891 | 22,209 | $ | 1,357,192 | |||||||||||||||||||||||||||||||||||||
Phillippe Lord | 86,408 | (5) (7) | $ | 5,280,393 | 50,950 | $ | 3,113,555 | |||||||||||||||||||||||||||||||||||||
Javier Feliciano | 22,070 | (6) (7) | $ | 1,348,698 | 11,105 | $ | 678,627 |
Name | Health and Insurance Premiums ($) (1) | 401(k) Match ($) | Car Allowance ($) | Other ($)(2) | Total All Other Compensation ($) | ||||||||||
Steven J. Hilton | 41,701 | 6,480 | — | 129 | 48,310 | ||||||||||
Hilla Sferruzza | 33,294 | 6,480 | — | 822 | 40,596 | ||||||||||
C. Timothy White | 35,332 | 6,480 | 14,400 | 960 | 57,172 | ||||||||||
Phillippe Lord | 31,025 | 6,480 | 14,400 | 3,266 | 55,171 | ||||||||||
Javier Feliciano | 23,953 | 6,480 | — | 1,379 | 31,812 |
Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (2) | Grant Date Fair Value of Stock and Option Awards ($) (3) | |||||||||||||
Name | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||
Steven J Hilton, Chairman and CEO | 2/14/2017 | — | 29,326 | — | 1,000,017 | |||||||||||
2/14/2017 | 14,663 | 29,326 | 43,989 | 934,911 | ||||||||||||
625,000 | 2,500,000 | 5,000,000 | ||||||||||||||
Hilla Sferruzza, EVP and CFO (2) | 2/14/2017 | — | 11,547 | — | 393,753 | |||||||||||
2/14/2017 | 5,774 | 11,547 | 17,321 | 368,119 | ||||||||||||
131,250 | 525,000 | 1,050,000 | ||||||||||||||
C. Timothy White, EVP, General Counsel and Secretary | 2/14/2017 | — | 12,463 | — | 424,988 | |||||||||||
2/14/2017 | 6,232 | 12,463 | 18,695 | 397,320 | ||||||||||||
150,000 | 600,000 | 1,200,000 | ||||||||||||||
Phillippe Lord, EVP and COO | 2/14/2017 | — | 18,328 | — | 624,985 | |||||||||||
2/14/2017 | 9,164 | 18,328 | 27,492 | 584,299 | ||||||||||||
275,000 | 1,100,000 | 1,875,500 | ||||||||||||||
Javier Feliciano, EVP and CHRO | 2/14/2017 | — | 5,396 | — | 184,004 | |||||||||||
2/14/2017 | 2,698 | 5,396 | 8,094 | 172,023 | ||||||||||||
50,000 | 200,000 | 266,000 |
COMPENSATION OF OFFICERS AND DIRECTORS |
Name | Vested in February 2020 (#) | Vesting in March 2021 (#) | Vesting in March 2022 (#) | Total Earned but not Vested Performance Shares as of December 31, 2019 (#) | ||||||||||||||||||||||
Steven J Hilton | 67,805 | 29,014 | 12,537 | 109,356 | ||||||||||||||||||||||
Hilla Sferruzza | 26,698 | 8,098 | 4,119 | 38,915 | ||||||||||||||||||||||
C. Timothy White | 28,818 | 5,986 | 3,044 | 37,848 | ||||||||||||||||||||||
Phillippe Lord | 42,378 | 13,732 | 6,984 | 63,094 | ||||||||||||||||||||||
Javier Feliciano | 12,475 | 2,992 | 1,522 | 16,989 |
Name | Vesting in March 2021 (#) | Vesting in March 2022 (#) | Total Unearned and Unvested as of December 31, 2019(#) | |||||||||||||||||
Steven J Hilton | 39,455 | 32,082 | 71,537 | |||||||||||||||||
Hilla Sferruzza | 19,508 | 10,541 | 30,049 | |||||||||||||||||
C. Timothy White | 14,418 | 7,791 | 22,209 | |||||||||||||||||
Phillippe Lord | 33,076 | 17,874 | 50,950 | |||||||||||||||||
Javier Feliciano | 7,210 | 3,895 | 11,105 |
Stock Awards | ||||||||||||||
Equity Incentive Plan Awards | ||||||||||||||
Name | Number of Shares or Units of Stock that Have Not Vested (#) | Market Value of Shares of Units of Stock that Have Not Vested (9) | Number of Unearned Shares, Units or Other Rights that Have Not Vested (#) (7) (8) | Market or Payout Value of Unearned Shares, Units or Other Rights that Have Not Vested (9) | ||||||||||
Steven J Hilton, Chairman and CEO | 95,395 | (1) (6) | $ | 4,884,224 | 67,318 | $ | 3,446,682 | |||||||
Hilla Sferruzza, EVP and CFO | 25,258 | (2) (6) | $ | 1,293,210 | 25,344 | $ | 1,297,613 | |||||||
C. Timothy White, EVP, General Counsel and Secretary | 40,543 | (3) (6) | $ | 2,075,802 | 28,609 | $ | 1,464,781 | |||||||
Phillippe Lord, EVP and COO | 46,698 | (4) (6) | $ | 2,390,938 | 40,910 | $ | 2,094,592 | |||||||
Javier Feliciano, EVP and CHRO | 5,026 | (5) (6) | $ | 257,331 | 9,534 | $ | 488,141 |
Name | Vested in February 2018 (#) | Vesting in March 2018 (#) | Vesting in March 2019 (#) | Vesting in February 2020 (#) | Total Earned but not Vested Performance Shares as of December 31, 2017 (#) | ||||||||||
Steven J Hilton | 13,810 | — | 18,464 | 9,204 | 41,478 | ||||||||||
Hilla Sferruzza | — | — | 5,885 | 3,624 | 9,509 | ||||||||||
C. Timothy White | 5,870 | — | 7,847 | 3,912 | 17,629 | ||||||||||
Phillippe Lord | — | 4,001 | 10,155 | 5,753 | 19,909 | ||||||||||
Javier Feliciano | — | — | — | 1,693 | 1,693 |
Name | Vesting in March 2019 (#) | Vesting in February 2020 (#) | Total Unearned and Unvested as of December 31, 2017 (#) | ||||||
Steven J Hilton | 15,508 | 51,810 | 67,318 | ||||||
Hilla Sferruzza | 4,943 | 20,401 | 25,344 | ||||||
C. Timothy White | 6,590 | 22,019 | 28,609 | ||||||
Phillippe Lord | 8,531 | 32,379 | 40,910 | ||||||
Javier Feliciano | — | 9,534 | 9,534 |
COMPENSATION OF OFFICERS AND DIRECTORS |
Stock Awards | ||||||||||||||||||||
Name (1) | Number of Shares Acquired on Vesting (#) (4) | Value Realized on Vesting ($) | ||||||||||||||||||
Steven J Hilton | 67,328 | $ | 3,009,562 | |||||||||||||||||
Hilla Sferruzza (2) | 23,622 | $ | 1,053,676 | |||||||||||||||||
C. Timothy White | 28,614 | $ | 1,279,046 | |||||||||||||||||
Phillippe Lord (3) | 38,231 | $ | 1,709,262 | |||||||||||||||||
Stock Awards | |||||||
Name | Number of Shares Acquired on Vesting (#) (3) | Value Realized on Vesting | |||||
Steven J Hilton, Chairman and CEO | 30,505 | $ | 1,049,372 | ||||
Hilla Sferruzza, EVP and CFO (1) | 4,320 | $ | 149,028 | ||||
C. Timothy White, EVP, General Counsel and Secretary | 12,965 | $ | 445,996 | ||||
Phillippe Lord, EVP and COO (2) | 3,900 | $ | 134,685 | ||||
Javier Feliciano, EVP and CHRO | 3,333 | $ | 168,650 |
Shares Vested (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Name (1) | Year | EPS (40%) | ROA (30%) | TSR (30%) | Total | |||||||||||||||||||||||||||||||||||||||||||||
Steven J Hilton | 2018 | 4,733 | (3) | 3,218 | (3) | 11,835 | (6) | 19,786 | ||||||||||||||||||||||||||||||||||||||||||
2017 | 5,816 | (4) | 3,311 | (4) | 9,127 | |||||||||||||||||||||||||||||||||||||||||||||
2016 | 5,816 | (5) | 3,521 | (5) | 9,337 | |||||||||||||||||||||||||||||||||||||||||||||
Total | 16,365 | 10,050 | 11,835 | 38,250 | ||||||||||||||||||||||||||||||||||||||||||||||
Hilla Sferruzza | 2018 | 1,509 | (3) | 1,026 | (3) | 3,773 | (6) | 6,308 | ||||||||||||||||||||||||||||||||||||||||||
2017 | 1,854 | (4) | 1,055 | (4) | 2,909 | |||||||||||||||||||||||||||||||||||||||||||||
2016 | 1,854 | (5) | 1,122 | (5) | 2,976 | |||||||||||||||||||||||||||||||||||||||||||||
Total | 5,217 | 3,203 | 3,773 | 12,193 | ||||||||||||||||||||||||||||||||||||||||||||||
C. Timothy White | 2018 | 2,011 | (3) | 1,368 | (3) | 5,030 | (6) | 8,409 | ||||||||||||||||||||||||||||||||||||||||||
2017 | 2,472 | (4) | 1,407 | (4) | 3,879 | |||||||||||||||||||||||||||||||||||||||||||||
2016 | 2,472 | (5) | 1,496 | (5) | 3,968 | |||||||||||||||||||||||||||||||||||||||||||||
Total | 6,955 | 4,271 | 5,030 | 16,256 | ||||||||||||||||||||||||||||||||||||||||||||||
Phillippe Lord | 2018 | 2,602 | (3) | 1,770 | (3) | 6,510 | (6) | 10,882 | ||||||||||||||||||||||||||||||||||||||||||
2017 | 3,199 | (4) | 1,821 | (4) | 5,020 | |||||||||||||||||||||||||||||||||||||||||||||
2016 | 3,199 | (5) | 1,937 | (5) | 5,136 | |||||||||||||||||||||||||||||||||||||||||||||
Total | 9,000 | 5,528 | 6,510 | 21,038 |
Named Executive Officer | |||||||||
Actual Results (dollars in thousands) | Steven J. Hilton | C. Timothy White | |||||||
EPS (30%) | |||||||||
Actual | $ | 11.21 | $ | 11.21 | |||||
Target | ≥ | $ | 12.35 | $ | 12.35 | ||||
Shares Vested (1) | 5,204 | 2,212 | |||||||
ROA (30%) | |||||||||
Actual | 6.30 | % | 6.30 | % | |||||
Target | ≥ | 7.39 | % | 7.39 | % | ||||
Shares Vested (1) | 3,371 | 1,433 | |||||||
Relative TSR (40%) | |||||||||
Actual | 21.43 | % | 21.43 | % | |||||
Target | ≥ | 50.00 | % | 50.00 | % | ||||
Shares Vested (2) | — | — | |||||||
Total Shares Vested (3) | 8,575 | 3,645 |
COMPENSATION OF OFFICERS AND DIRECTORS |
Nonqualified Deferred Compensation Plans |
Name | Executive Contributions in Last FY ($) | Registrant Contributions in Last FY ($) (1) | Aggregate Earnings in Last FY ($) (2) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last FYE ($) (3) | |||||||||||||||||||||||||||
C. Timothy White, EVP, General Counsel and Secretary | — | — | 218,046 | — | 1,208,862 | |||||||||||||||||||||||||||
Hilla Sferruzza, EVP, Chief Financial Officer | 46,000 | — | 3,216 | — | 49,216 |
Name | Executive Contributions in Last Fiscal Year ($) | Registrant Contributions in Last Fiscal Year ($) (1) | Aggregate Earnings in Last Fiscal Year ($) (2) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last Fiscal Year End ($) (3) | ||||||||||
C. Timothy White, EVP, General Counsel and Secretary | — | — | 150,328 | — | 1,043,570 | ||||||||||
Phillippe Lord, EVP and COO (4) | — | — | — | 205,126 | — |
Potential Payments upon Termination or Change of Control Summary |
Employment Agreements—Severance Benefits |
COMPENSATION OF OFFICERS AND DIRECTORS |
Voluntary Resignation by Officer Without Good Reason or Termination by the Company With Cause | Voluntary Resignation by Officer With Good Reason (1) | Termination by the Company Without Cause (1) | Death or Disability | Retirement (1) (2) | Change In Control | |||||||||||||||
Base salary and paid time off through date of termination | X | X | X | X | X | X | ||||||||||||||
Annual cash incentive awards, performance share awards and restricted stock unit awards earned in a previous year but not yet paid or issued | X | X | X | X | X | X | ||||||||||||||
Pro-rata annual cash incentive bonus for period in which termination occurs | X | X | X | |||||||||||||||||
Target bonus for the performance period in which the termination occurs | X | |||||||||||||||||||
Projected bonus for the performance period in which the Change of Control occurs | X | |||||||||||||||||||
Certain previously granted time-based awards and restricted stock units that are outstanding shall immediately vest and become unrestricted | X | X | X | X | X | |||||||||||||||
Performance shares awarded | X | X | X | X | ||||||||||||||||
Target number of previously granted performance share awards that have not vested will immediately vest and become unrestricted | X | |||||||||||||||||||
Any outstanding stock options shall vest and remain exercisable for the remainder of the original term | X | X | X | X | X | |||||||||||||||
Payment for health coverage equal to 150% of monthly COBRA premium | X | X | X | X | ||||||||||||||||
Severance payment equal to the sum of (A) two times the executive officer’s base salary on the date of termination and (B) two times the higher of (x) the average of the bonus compensation paid to the executive officer for the two years prior to his termination of employment or (y) the annual bonus paid to the executive officer for the year preceding the date of termination (3) (4) (5) (6) | X | X | X |
COMPENSATION OF OFFICERS AND DIRECTORS |
Voluntary Resignation by Officer Without Good Reason or Termination by the Company With Cause | Voluntary Resignation by Officer With Good Reason | Termination by the Company Without Cause | Death or Disability | Retirement (1) | Change In Control (5) | |||||||||||||||
Base salary and paid time off through date of termination | X | X | X | X | X | X | ||||||||||||||
Pro-rata annual cash incentive bonus for period in which termination occurs based on actual performance achieved | X | X | X | |||||||||||||||||
Target annual cash incentive bonus for the performance period in which the termination occurs | X | X | ||||||||||||||||||
Service based (time based) awards and restricted stock units that are outstanding shall immediately vest and become unrestricted | X | X | X | |||||||||||||||||
100% of performance share awards (or restricted stock units) shall immediately vest and become unrestricted (6) | X | |||||||||||||||||||
Previously granted | X | X | ||||||||||||||||||
Any outstanding and vested stock options will remain exercisable as provided by in the original equity awards (2) (3) | X | X | X | X | ||||||||||||||||
Any outstanding and unvested stock options will immediately vest and will remain exercisable for the remainder of the original equity award, but not later than the tenth anniversary of the original grant date | X | X | ||||||||||||||||||
Payment for health coverage equal to 100% of monthly COBRA premium for 24 months | X | X | X | |||||||||||||||||
Severance payment equal to two times the executive officer’s base salary on the date of termination plus two times the executive officers target bonus in the year of termination (4) | X | X | X |
COMPENSATION OF OFFICERS AND DIRECTORS |
Other Matters Regarding the Employment Agreements and Change of Control Agreements |
Executive Officer (1) | Voluntary Termination by Executive Without Good Reason (1) | Voluntary Termination by Executive With Good Reason (1)(2) | Termination By Company Without Cause (1)(2) | Termination by Company With Cause | Death or Disability (1) | Retirement (1) | Change of Control (1) | ||||||||||||||||||||||||||||||||||
Steven J. Hilton | $ | 1,871,005 | $ | 28,869,798 | $ | 28,869,798 | $ | 1,871,005 | $ | 17,171,227 | $ | 19,204,257 | $ | 34,325,677 | |||||||||||||||||||||||||||
Hilla Sferruzza | $ | — | $ | 3,358,687 | $ | 3,358,687 | $ | — | $ | 5,846,673 | $ | 6,444,293 | $ | 8,476,491 | |||||||||||||||||||||||||||
C. Timothy White | $ | 621,428 | $ | 7,442,134 | $ | 6,906,521 | $ | 621,428 | $ | 4,943,251 | $ | 5,389,966 | $ | 9,644,800 | |||||||||||||||||||||||||||
Phillippe Lord | $ | — | $ | 4,423,230 | $ | 4,423,230 | $ | — | $ | 9,693,947 | $ | 10,774,860 | $ | 12,736,265 | |||||||||||||||||||||||||||
Javier Feliciano | $ | — | $ | 1,541,805 | $ | 1,541,805 | $ | — | $ | 2,239,824 | $ | 2,416,512 | $ | 3,392,442 |
Executive Officer (1) | Voluntary Termination by Executive Without Good Reason (1) | Voluntary Termination by Executive With Good Reason (1)(2) | Termination By Company Without Cause (1)(2) | Termination by Company With Cause | Death or Disability (1) | Retirement (1) | Change of Control (1) | ||||||||||||||||||||
Steven J. Hilton | $ | 478,054 | $ | 22,610,436 | $ | 22,610,436 | $ | 478,054 | $ | 10,869,947 | $ | 12,571,395 | $ | 23,445,439 | |||||||||||||
Hilla Sferruzza | $ | — | $ | 2,928,947 | $ | 2,928,947 | $ | — | $ | 3,115,822 | $ | 3,481,325 | $ | 5,254,266 | |||||||||||||
C. Timothy White | $ | 203,162 | $ | 6,600,355 | $ | 6,153,985 | $ | 203,162 | $ | 4,182,638 | $ | 4,558,299 | $ | 9,537,230 | |||||||||||||
Phillippe Lord | $ | — | $ | 3,675,109 | $ | 3,675,109 | $ | — | $ | 5,585,530 | $ | 6,124,195 | $ | 8,621,974 | |||||||||||||
Javier Feliciano | $ | — | $ | 1,329,168 | $ | 1,329,168 | $ | — | $ | 945,472 | $ | 990,911 | $ | 2,029,201 |
Pay Ratio Disclosure |
Median Employee annual total | $ | ||||
Steven J. Hilton (CEO) annual total | $ | ||||
Ratio of CEO to Median Employee Compensation |
Director Compensation |
COMPENSATION OF OFFICERS AND DIRECTORS |
Board Retainer | $ | 50,000 | ||||||
Committee Chair Retainer (All Committees Except the Land Committee) | $ | 20,000 | ||||||
Committee Member Retainer (All Committees Except the Land Committee) | $ | 10,000 | ||||||
Lead Director | $ | 40,000 |
Name | Fees Earned or Paid in Cash ($) (1) | Stock Awards ($) (2) | Total ($) | |||||||||||||||||
Robert G. Sarver (3) | 12,500 | 202,410 | 214,910 | |||||||||||||||||
Raymond Oppel | 60,000 | 202,410 | 262,410 | |||||||||||||||||
Peter L. Ax | 120,000 | 202,410 | 322,410 | |||||||||||||||||
Richard T. Burke, Sr. (4) | 30,000 | 202,410 | 232,410 | |||||||||||||||||
Gerald Haddock | 70,000 | 202,410 | 272,410 | |||||||||||||||||
Dana C. Bradford | 70,000 | 202,410 | 272,410 | |||||||||||||||||
Michael R. Odell | 70,000 | 202,410 | 272,410 | |||||||||||||||||
Deborah Ann Henretta | 60,000 | 202,410 | 262,410 | |||||||||||||||||
Joseph Keough (5) | 30,000 | 237,060 | 267,060 |
Name | Fees Earned or Paid in Cash ($) (1) | Stock Awards ($) (2) | Total ($) | ||||||
Robert G. Sarver | 50,000 | 170,500 | 220,500 | ||||||
Raymond Oppel | 70,000 | 170,500 | 240,500 | ||||||
Peter L. Ax | 120,000 | 170,500 | 290,500 | ||||||
Richard T. Burke, Sr. | 60,000 | 170,500 | 230,500 | ||||||
Gerald Haddock | 70,000 | 170,500 | 240,500 | ||||||
Dana Bradford | 70,000 | 170,500 | 240,500 | ||||||
Michael R. Odell | 60,000 | 170,500 | 230,500 | ||||||
Deb Henretta (3) | 60,000 | 511,500 | 571,500 |
(4)Mr. Burke retired from his position on the Board on July 12, 2019. (5)Mr. Keough was appointed to the Board on June 14, 2019. The different dollar value of Mr. Keough's 2019 awards compared to the other Board members is due to the difference in stock price on the respective grant dates as noted in footnote (2) above. Except for Mr. Keough each non-employee director held 14,500 shares of unvested restricted stock units at December 31, 2019. We reimburse directors for out-of-pocket expenses incurred in attending Board and committee meetings and we also reimburse certain directors for charter aircraft service or other travel and lodging-related expenses. During 2019, we made reimbursements of approximately $9,000, $9,000, $7,000, $4,000 and $2,000 to Mr. Oppel, Ms. Henretta, Messrs. Haddock, Bradford and Odell, respectively. |
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS |
Plan Category | (a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (1) | (b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights (2) | (c) Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) | |||||||||||||||||
Equity compensation plans approved by stockholders | 1,240,529 | N/A | 1,581,383 | |||||||||||||||||
Equity compensation plans not approved by stockholders | — | N/A | — | |||||||||||||||||
Total | 1,240,529 | N/A | 1,581,383 |
Plan Category | (a) Number of Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (1) | (b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights (2) | (c) Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (3) | |||||
Equity compensation plans approved by stockholders | 1,269,657 | N/A | 1,169,574 | |||||
Equity compensation plans not approved by stockholders | — | N/A | — | |||||
Total | 1,269,657 | N/A | 1,169,574 |
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS |
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Air Charter Services | $ | 466 | $ | 606 | $ | 580 |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Air Charter Services | $ | 580 | $ | 711 | $ | 695 |
INDEPENDENT AUDITORS |
2019 | 2018 | |||||||||||||
Audit fees (1) | $ | 1,115,000 | $ | 1,229,000 | ||||||||||
Audit-related fees | — | — | ||||||||||||
Audit and audit-related fees | $ | 1,115,000 | $ | 1,229,000 | ||||||||||
Tax fees (2) | 9,600 | 29,600 | ||||||||||||
All other fees (3) | 45,000 | — | ||||||||||||
Total fees | $ | 1,169,600 | $ | 1,258,600 |
2017 | 2016 | |||||||
Audit fees (1) | $ | 1,080,000 | $ | 1,151,500 | ||||
Audit-related fees | — | — | ||||||
Audit and audit-related fees | $ | 1,080,000 | $ | 1,151,500 | ||||
Tax fees | — | — | ||||||
All other fees | — | — | ||||||
Total fees | $ | 1,080,000 | $ | 1,151,500 |
(2)Tax fees in 2018 consisted of work performed related to Tax Reform and general tax consulting. (3)Other fees consisted of work performed related to data security analysis. |
INDEPENDENT AUDITORS |
THE AUDIT COMMITTEE | |||||
Peter L. Ax—Chair Dana C. Bradford |
STOCKHOLDER PROPOSALS, | DIRECTOR NOMINATIONS AND OTHER ITEMS OF BUSINESS |
FORWARD-LOOKING STATEMENTS |
ANNUAL REPORT ON FORM 10-K AND OTHER MATTERS |
1. Election of six directors | 2. Ratification of the selection of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for the 2020 fiscal year. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FOR | AGAINST | ABSTAIN | FOR ¨ AGAINST¨ ABSTAIN¨ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01 | Steven J Hilton | ¨ | ¨ | ¨ | 3. Advisory vote to approve compensation of our Named Executive Officers ("Say on Pay"). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02 | Raymond Oppel | ¨ | ¨ | ¨ | FOR ¨ AGAINST¨ ABSTAIN¨ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
03 | Dana C. Bradford | ¨ | ¨ | ¨ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
04 | Deborah Ann Henretta | ¨ | ¨ | ¨ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
05 | P. Kelly Mooney | ¨ | ¨ | ¨ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06 | Joseph Keough | ¨ | ¨ | ¨ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTE: The conduct of any other business that may properly come before the meeting or any adjournment or postponement thereof. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
I plan to attend the meeting | ¨ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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INTERNET | TELEPHONE | ||||||||||||||||||||||||||||
Vote Your Proxy on the Internet: | Vote Your Proxy by Phone: | Vote Your Proxy by Mail: | |||||||||||||||||||||||||||
Go to www.AALvote.com/MTH | Call 1 (866) 804-9616 | ||||||||||||||||||||||||||||
Have your proxy card available | Use any touch-tone telephone to | Mark, sign, and date your proxy | |||||||||||||||||||||||||||
when you access the above | vote your proxy. Have your proxy | card, then detach it, and return it | |||||||||||||||||||||||||||
website. Follow the prompts to | card available when you call. | in the postage-paid envelope | |||||||||||||||||||||||||||
vote your shares. | Follow the voting instructions to | provided. | |||||||||||||||||||||||||||
vote your shares. |