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þ | Definitive Proxy Statement | |
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o | Soliciting Material Pursuant to Section 240.14a-12 |
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Job Name: 21035-01p01-ARCover_ppTHE BON«TON STORES, INC. PROXY STATEMENT & NOTICE OF 2009 ANNUAL MEETING Page Base + Job Name: 21035-01p01-ARCover_pp Spellcheck by: Created: 03/02/09 Skel Name: 8.25x10.75 FP.indt Date Modified: April 10, 2009 10:30 AM |
3. | To ratify the appointment of KPMG LLP as independent registered public accounting firm for |
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• | Internet: You can vote over the internet at the internet address shown on your proxy card. Internet voting is available 24 hours a day. If you have access to the internet, we encourage you to vote this way.If you vote over the internet, do not return your proxy card. | |
• | Telephone: You can vote by calling the toll-free telephone number on your proxy card. Telephone voting is available 24 hours a day.Easy-to-follow voice prompts allow you to vote your shares and confirm that your instructions have been properly recorded.If you vote by telephone, do not return your proxy card. | |
• | Proxy Card: You can vote by signing, dating and mailing your proxy card in the postage-paid envelope provided. | |
• | Vote in Person: You can attend the Annual Meeting and vote at the meeting. |
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Class A Common Stock | Common Stock(1) | |||||||||||||||
Number of | Percent | Number of | Percent | |||||||||||||
Name and Address | Shares | of Class | Shares | of Class | ||||||||||||
Tim Grumbacher | 2,406,253 | 81.53 | % | 5,438,008 | (2) | 31.72 | % | |||||||||
2801 E. Market Street York, PA 17402 | ||||||||||||||||
Buckingham Capital Management Inc. | — | — | 1,550,570 | (3) | 10.52 | % | ||||||||||
750 Third Avenue, 6th Floor New York, NY 10017 | ||||||||||||||||
Paradigm Capital Management, Inc. | — | — | 1,009,800 | (3) | 6.85 | % | ||||||||||
Nine Elk Street Albany, NY 12207 | ||||||||||||||||
Brigade Capital Management, LLC | — | — | 900,000 | (3) | 6.11 | % | ||||||||||
717 Fifth Avenue, Suite 1301 New York, NY 10022 | ||||||||||||||||
Henry F. Miller | 545,237 | (4) | 18.47 | % | 1,039,733 | (5) | 6.80 | % | ||||||||
1650 Arch Street — 22nd Floor Philadelphia, PA 19103 | ||||||||||||||||
Michael L. Gleim | 545,237 | (4) | 18.47 | % | 1,270,465 | (6) | 8.31 | % | ||||||||
2801 E. Market Street York, PA 17402 | ||||||||||||||||
David R. Glyn | 545,237 | (4) | 18.47 | % | 638,512 | (7) | 4.18 | % | ||||||||
1650 Arch Street — 22nd Floor Philadelphia, PA 19103 | ||||||||||||||||
M. Thomas Grumbacher Trust | 181,746 | 6.16 | % | 200,342 | 1.34 | % | ||||||||||
dated March 9, 1989 for the benefit of Matthew Reed Grumbacher(8) 1650 Arch Street — 22nd Floor Philadelphia, PA 19103 | ||||||||||||||||
M. Thomas Grumbacher Trust | 181,746 | 6.16 | % | 200,342 | 1.34 | % | ||||||||||
dated March 9, 1989 for the benefit of Beth Anne Grumbacher Elser(8) 1650 Arch Street — 22nd Floor Philadelphia, PA 19103 | ||||||||||||||||
M. Thomas Grumbacher Trust | 181,746 | 6.16 | % | 200,342 | 1.34 | % | ||||||||||
dated March 9, 1989 for the benefit of Max Aaron Grumbacher(8) 1650 Arch Street — 22nd Floor Philadelphia, PA 19103 |
Class A Common Stock | Common Stock(1) | |||||||||||||||
Number of | Percent | Number of | Percent | |||||||||||||
Name and Address | Shares | of Class | Shares | of Class | ||||||||||||
Tim Grumbacher | 2,406,253 | 81.53 | % | 5,438,008 | (2) | 31.45 | % | |||||||||
2801 E. Market Street | ||||||||||||||||
York, PA 17402 | ||||||||||||||||
State Street Bank and Trust Company | — | — | 1,361,257 | (3) | 9.15 | % | ||||||||||
One Lincoln Street | ||||||||||||||||
Boston, MA 02111 | ||||||||||||||||
Paradigm Capital Management, Inc. | — | — | 1,192,600 | (3) | 8.01 | % | ||||||||||
Nine Elk Street | ||||||||||||||||
Albany, NY 12207 | ||||||||||||||||
Dimension Fund Advisors LP | — | — | 912,882 | (3) | 6.13 | % | ||||||||||
Palisades West, Building One | ||||||||||||||||
6300 Bee Cave Road | ||||||||||||||||
Austin, TX 78746 | ||||||||||||||||
Gamco Investors, Inc. | — | — | 861,500 | (3) | 5.79 | % | ||||||||||
One Corporate Center | ||||||||||||||||
Rye, NY10580-1435 | ||||||||||||||||
Henry F. Miller | 545,237 | (4) | 18.47 | % | 837,157 | (5) | 5.43 | % | ||||||||
1900 Market Street | ||||||||||||||||
Philadelphia, PA 19103 | ||||||||||||||||
Michael L. Gleim | 545,237 | (4) | 18.47 | % | 1,194,662 | (6) | 7.74 | % | ||||||||
2801 E. Market Street | ||||||||||||||||
York, PA 17402 | ||||||||||||||||
David R. Glyn | 545,237 | (4) | 18.47 | % | 638,512 | (7) | 4.14 | % | ||||||||
1900 Market Street | ||||||||||||||||
Philadelphia, PA 19103 | ||||||||||||||||
M. Thomas Grumbacher Trust | 181,746 | 6.16 | % | 200,342 | 1.33 | % | ||||||||||
dated March 9, 1989 for the benefit | ||||||||||||||||
of Matthew Reed Grumbacher(8) | ||||||||||||||||
1900 Market Street | ||||||||||||||||
Philadelphia, PA 19103 | ||||||||||||||||
M. Thomas Grumbacher Trust | 181,746 | 6.16 | % | 200,342 | 1.33 | % | ||||||||||
dated March 9, 1989 for the benefit | ||||||||||||||||
of Beth Anne Grumbacher Elser(8) | ||||||||||||||||
1900 Market Street | ||||||||||||||||
Philadelphia, PA 19103 | ||||||||||||||||
M. Thomas Grumbacher Trust | 181,746 | 6.16 | % | 200,342 | 1.33 | % | ||||||||||
dated March 9, 1989 for the benefit | ||||||||||||||||
of Max Aaron Grumbacher(8) | ||||||||||||||||
1900 Market Street | ||||||||||||||||
Philadelphia, PA 19103 |
(1) | Each share of Class A common stock is convertible into one share of common stock at the holder’s option. Accordingly, the number of shares of common stock for each person includes the number of shares of common stock issuable upon conversion of all shares of Class A common stock beneficially owned by such person. Also, the total number of shares of common stock outstanding for purposes of calculating percentage ownership of a person includes the number of shares of Class A common stock beneficially owned by such person. |
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(2) | The number of shares of common stock includes (a) 126,773 shares of common stock held by The Grumbacher Family Foundation, a charitable foundation of which Mr. Grumbacher, Nancy T. Grumbacher (Mr. Grumbacher’s wife) |
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(3) | Based solely on Schedules 13G filed with the Securities and Exchange Commission by: (a) | |
(4) | Consists of Class A common stock held by trusts for the benefit of Tim Grumbacher’s children of which Michael L. Gleim, Henry F. Miller and David R. Glyn are the trustees. Messrs. Gleim, Miller and Glyn each disclaim beneficial ownership of all shares referred to in this note. | |
(5) | Consists of (a) | |
(6) | Includes (a) 126,773 shares of common stock held by The Grumbacher Family Foundation, a charitable foundation of which Mr. Gleim, Tim Grumbacher and Nancy T. Grumbacher | |
(7) | Consists of (a) 545,237 shares of Class A common stock and 55,789 shares of common stock held by trusts for the benefit of Tim Grumbacher’s children of which Mr. Glyn | |
(8) | In notes (4), (5), (6) and (7) above, we discussed trusts for the benefit of Tim Grumbacher’s children, of which |
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Class A Common Stock | Common Stock(1) | |||||||||||||||
Shares | Shares | |||||||||||||||
Beneficially | Percent | Beneficially | Percent | |||||||||||||
Name | Owned | of Class | Owned(2) | of Class | ||||||||||||
Tim Grumbacher | 2,406,253 | 81.53 | % | 5,438,008 | (3) | 31.72 | % | |||||||||
Lucinda M. Baier | — | 10,000 | * | |||||||||||||
Robert B. Bank | — | — | ||||||||||||||
Byron L. Bergren | — | 669,653 | 4.49 | % | ||||||||||||
Philip M. Browne | — | 7,600 | * | |||||||||||||
Anthony J. Buccina | — | 119,865 | * | |||||||||||||
Stephen R. Byers | — | 35,282 | * | |||||||||||||
Shirley A. Dawe | — | 2,500 | * | |||||||||||||
Marsha M. Everton | — | 860 | * | |||||||||||||
Michael L. Gleim | 545,237 | (4) | 18.47 | % | 1,270,465 | (5) | 8.31 | % | ||||||||
Thomas K. Hernquist | — | 3,000 | * | |||||||||||||
Todd C. McCarty | — | — | ||||||||||||||
Keith E. Plowman | — | 43,727 | (6) | * | ||||||||||||
Robert E. Salerno | — | 2,400 | * | |||||||||||||
All directors and executive officers as a group (17 persons) | 2,951,490 | 100.00 | % | 7,435,842 | (7) | 41.47 | % |
Class A Common Stock | Common Stock(1) | |||||||||||||||
Shares | Shares | |||||||||||||||
Beneficially | Percent | Beneficially | Percent | |||||||||||||
Name | Owned | of Class | Owned(2) | of Class | ||||||||||||
Tim Grumbacher | 2,406,253 | 81.53 | % | 5,438,008 | (3) | 31.45 | % | |||||||||
Lucinda M. Baier | — | 10,000 | * | |||||||||||||
Robert B. Bank | — | — | ||||||||||||||
Byron L. Bergren | — | 486,743 | 3.23 | % | ||||||||||||
Philip M. Browne | — | 8,600 | * | |||||||||||||
Anthony J. Buccina | — | 383,865 | 2.56 | % | ||||||||||||
Stephen R. Byers | — | 187,449 | 1.26 | % | ||||||||||||
Shirley A. Dawe | — | 2,500 | * | |||||||||||||
Marsha M. Everton | — | 860 | * | |||||||||||||
Michael L. Gleim | 545,237 | (4) | 18.47 | % | 1,194,662 | (5) | 7.74 | % | ||||||||
Thomas K. Hernquist | — | 3,000 | * | |||||||||||||
Todd C. McCarty | — | — | ||||||||||||||
Keith E. Plowman | — | 43,727 | (6) | * | ||||||||||||
All directors and executive officers as a group (16 persons) | 2,951,490 | 100.00 | % | 7,682,541 | (7) | 42.24 | % |
* | less than 1% |
(1) | See note (1) to Principal Shareholders table. |
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(2) | The following table sets forth the number of options exercisable within 60 days of March |
Options Exercisable | Options Exercisable | |||||||||||||||||||||||
Within 60 Days of | Restricted | Restricted Stock | Within 60 Days of | Restricted | Restricted Stock | |||||||||||||||||||
Name | March 28, 2008 | Shares | Units | March 13, 2009 | Shares | Units | ||||||||||||||||||
Tim Grumbacher | — | 365,205 | — | — | 365,205 | — | ||||||||||||||||||
Lucinda M. Baier | — | — | 1,198 | — | — | 16,543 | ||||||||||||||||||
Robert B. Bank | — | — | 11,581 | — | — | 26,926 | ||||||||||||||||||
Byron L. Bergren | 166,334 | 421,605 | 20,259 | 187,000 | 203,575 | 20,259 | ||||||||||||||||||
Philip M. Browne | — | — | 11,581 | — | — | 26,926 | ||||||||||||||||||
Anthony J. Buccina | 32,000 | 67,865 | — | 96,000 | 212,865 | — | ||||||||||||||||||
Stephen R. Byers | 17,167 | 18,115 | — | 29,334 | 158,115 | — | ||||||||||||||||||
Shirley A. Dawe | — | — | 11,581 | — | — | 26,926 | ||||||||||||||||||
Marsha M. Everton | — | — | 11,581 | — | — | 26,926 | ||||||||||||||||||
Michael L. Gleim | — | — | 11,581 | — | — | 26,926 | ||||||||||||||||||
Thomas K. Hernquist | — | — | 1,275 | — | — | 16,620 | ||||||||||||||||||
Todd C. McCarty | — | — | 1,275 | — | — | 16,620 | ||||||||||||||||||
Keith E. Plowman | 6,667 | 17,865 | — | 6,667 | 17,865 | — | ||||||||||||||||||
Robert E. Salerno | — | — | 11,581 | |||||||||||||||||||||
All directors and executive officers as a group (17 persons) | 242,169 | 919,070 | 93,493 | |||||||||||||||||||||
All directors and executive officers as a group (16 persons) | 352,335 | 981,040 | 204,672 |
(3) | See note (2) to Principal Shareholders Table. |
(4) | See note (4) to Principal Shareholders Table. |
(5) | See note (6) to Principal Shareholders Table. |
(6) | Includes 675 shares held in an IRA by Mr. Plowman’s spouse. Mr. Plowman disclaims beneficial ownership of these shares. |
(7) | See notes (1) — (6) above. |
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• | Articles of Incorporation | |
• | Bylaws | |
• | Corporate Governance Policies | |
• | Audit Committee Charter | |
• | Human Resources and Compensation Committee Charter | |
• | Governance and Nominating Committee Charter | |
• | Executive Committee Charter | |
• | Code of Ethical Standards and Business Conduct |
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• | ||
• | ||
• | ||
• |
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• | a $110,000 annual fee, $50,000 of which | |
• | a $20,000 annual fee for serving on the Executive Committee; | |
• | a $5,000 annual fee for serving on each committee other than the Executive Committee; and | |
• | a $10,000 supplemental annual fee for each Committee chair. |
Change in | Change in | |||||||||||||||||||||||||||||||||||||||
Pension | Pension | |||||||||||||||||||||||||||||||||||||||
Value and | Value and | |||||||||||||||||||||||||||||||||||||||
Nonqualified | Nonqualified | |||||||||||||||||||||||||||||||||||||||
Fees Earned | Deferred | Fees Earned | Deferred | |||||||||||||||||||||||||||||||||||||
or Paid | Stock | Compensation | All other | or Paid | Stock | Compensation | All Other | |||||||||||||||||||||||||||||||||
in Cash | Awards | Earnings | Compensation | Total | in Cash | Awards | Earnings | Compensation | Total | |||||||||||||||||||||||||||||||
Name | ($) | ($)(1) | ($) | ($) | ($) | ($) | ($)(1) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||
Lucinda M. Baier | 26,250 | 30,000 | — | — | 56,250 | 55,000 | 60,000 | — | — | 115,000 | ||||||||||||||||||||||||||||||
Robert B. Bank | 63,750 | 60,000 | — | 5,000 | (3) | 128,750 | 55,000 | 60,000 | — | 5,000 | (2) | 120,000 | ||||||||||||||||||||||||||||
Philip M. Browne | 67,500 | 60,000 | — | — | 127,500 | 65,000 | 60,000 | — | — | 125,000 | ||||||||||||||||||||||||||||||
Shirley A. Dawe | 97,500 | 60,000 | — | — | 157,500 | 75,000 | 60,000 | — | — | 135,000 | ||||||||||||||||||||||||||||||
Marsha M. Everton | 66,250 | 60,000 | — | — | 126,250 | 70,000 | 60,000 | — | — | 130,000 | ||||||||||||||||||||||||||||||
Michael L. Gleim | 85,000 | 60,000 | — | (4) | 180,000 | (5) | 325,000 | 85,000 | 60,000 | — | (3) | 180,000 | (4) | 325,000 | ||||||||||||||||||||||||||
Thomas K. Hernquist | 26,250 | 30,000 | — | — | 56,250 | 55,000 | 60,000 | — | — | 115,000 | ||||||||||||||||||||||||||||||
Todd C. McCarty | 26,250 | 30,000 | — | — | 56,250 | 55,000 | 60,000 | — | — | 115,000 | ||||||||||||||||||||||||||||||
Robert E. Salerno | 55,000 | 60,000 | — | — | 115,000 |
(1) | The amounts reported in this column reflect the amount of compensation cost recognized in |
The aggregate number of RSUs at the end of |
(2) | ||
Fees received for Mr. Bank’s service on the Company’s Retirement Contribution Plan Committee. | ||
The actuarial valuation of the change in the pension value of Mr. Gleim’s benefit in the Bon-Ton SERP was a decrease of | ||
Mr. Gleim and the Company |
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The expiration of the term specified in the Option, which shall not exceed ten years from the date of grant or five years from the date of grant of an ISO if the recipient owns shares possessing more than 10% of the total combined voting power of all classes of stock of the |
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The expiration of 90 days from the date the optionee’s employment or service with the Company terminates for any reason other than disability (as defined in the Code) or death or as otherwise specified in | ||
The expiration of one year from the date the optionee’s employment or service with the Company terminates due to the optionee’s death or disability; | ||
A finding by the Committee that the optionee has breached his or her employment contract with the Company or has engaged in disloyalty to the Company; or | ||
Such time as the Committee may determine if there is a |
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(1) | any person who is not an affiliate of the Company on the date the Plan becomes effective becomes a beneficial owner of a majority of the outstanding voting power of the Company’s capital stock; | |
(2) | the shareholders of the Company approve and there is consummated any plan of liquidation providing for the distribution of all or substantially all of the Company’s assets; | |
(3) | there is consummated a merger, consolidation or other form of business combination involving the Company, or, in one transaction or a series of related transactions, a sale of all or substantially all of the assets of the Company, unless, in any such case: |
(A) | the business of the Company is continued following such transaction by a resulting entity (which may be, but need not be, the Company) (the “Surviving Company”); and |
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(B) | persons who were the beneficial owners of a majority of the outstanding voting power of the Company immediately prior to the completion of such transaction beneficially own, by reason of such prior beneficial ownership, a majority of the outstanding voting power of the Surviving Company (or a majority of the outstanding voting power of the direct or indirect parent of the Surviving Company, as the case may be) immediately following the completion of such transaction; or |
(4) | any person beneficially owns shares of the Company’s capital stock possessing a greater voting power than held in the aggregate by Tim Grumbacher, any member of his family, any trust for the primary benefit of Tim Grumbacher or any member of his family, and any charitable foundation of which Tim Grumbacher is a founder or co-founder with his wife (collectively, the “Grumbacher Affiliates”), or if the Grumbacher Affiliates control less than twenty percent (20%) of the outstanding voting power of the Company’s capital stock. |
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2007 | 2006 | 2008 | 2007 | |||||||||||||
Audit Fees(1) | $ | 1,959,919 | $ | 2,469,200 | $ | 1,813,925 | $ | 1,959,919 | ||||||||
Audit-Related Fees | — | 325,725 | — | — | ||||||||||||
Tax Fees | 626,850 | 366,606 | 358,833 | 626,850 | ||||||||||||
All Other Fees | — | — | — | — |
(1) | Audit Fees include fees associated with audit services, consultation on matters related to the consolidated financial statements, consents, reviews of the Company’s quarterly reports onForm 10-Q and reviews of the Company’s filings under the Securities Exchange Act of 1934. | |
(2) | ||
Tax Fees reflect all tax-related services, including consultation, return preparation, planning and compliance. |
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Name | Title | |
Tim Grumbacher | Executive Chairman of the Board | |
Byron L. Bergren | President and Chief Executive Officer | |
Anthony J. Buccina | Vice Chairman, | |
Stephen R. Byers | Vice Chairman — Stores, | |
Keith E. Plowman | Executive Vice President, Chief Financial Officer and Principal Accounting Officer |
• | Provide a compensation package that enables the Company to attract, motivate and retain key personnel. | |
• | Provide variable compensation opportunities, primarily on an annual basis, that are directly linked to corporate performance goals that drive operational success and enhance shareholder value. | |
• | Provide long-term equity incentive compensation opportunities through the award of stock options, shares of restricted stock, |
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Position | �� | Ownership Guideline |
Chief Executive Officer | 3x base salary | |
Vice Chairman | 2x base salary | |
Executive Vice President | 1x base salary |
• | Review and approve, and in some cases recommend for the approval of the full Board of Directors, the compensation for the Company’s executive officers, including the named executive officers. The total compensation of each of the executive officers is evaluated to ensure it is competitive in the marketplace and reflects the HRCC’s assessment of each executive officer’s contributions and value to the Company. | |
• | Approve the performance goals and metrics with respect to annual performance-based bonuses and equity awards to executive officers, including the Executive Chairman, the Chief Executive Officer and the other named executive officers. | |
• | Monitor total compensation paid to the named executive officers and other key executives and consider whether such compensation is fair, reasonable and competitive in consideration of each named executive officer’s capacity to influence shareholder value and promote the long-term growth of the Company. | |
• | Prepare an annual review and evaluation of the Chief Executive Officer’s performance for the year compared to pre-determined, HRCC-approved, performance metrics. | |
• | Prepare an annual review and evaluation of the Executive Chairman’s performance for the year compared to pre-determined, HRCC-approved, performance metrics. |
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Purpose | Characteristics | |||
Base Salary | Compensate named executive officers for performing their roles and assuming their levels of executive responsibility. Intended to provide a competitive level of compensation, it is a necessary | Fixed component. Annually reviewed by the HRCC and adjusted as appropriate. | ||
Performance-based Annual Incentive Compensation | Promote improvement of the Company’s financial results and performance. Intended to drive performance in a particular year without being a deterrent to long-term Company goals and initiatives. | Performance-based bonus opportunity based on the achievement of certain goals, which may be individual performance goals, Company performance goals or a combination of the two. Where applicable, goals are typically established annually and bonus amounts awarded will vary based on performance. | ||
Long-Term Equity Incentive Compensation | Promote the achievement of the Company’s long-term financial goals and stock price appreciation. Align named executive officers and shareholder interests, promote named executive officers’ retention and reward named executive officers for superior Company performance over time. | Reviewed annually and granted, if appropriate, by the HRCC in the form of stock options, stock awards and stock | ||
Perquisites and Other Benefits | Provide health and welfare benefits as available to all employees. Additional perquisites and benefits are designed to attract, retain and reward named executive officers by providing an overall benefit package similar to those provided by comparable companies. | Health and welfare benefits are a fixed component that may vary based on employee elections. Perquisites and other benefits may vary from year to year. | ||
Retirement Benefits | Provide basic retirement benefits as available to all associates and supplemental coverage necessary to retain key executives. | Participation in pension plans for certain named executive officers is a required element under applicable employment agreements. |
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(1) | net income, with a “threshold” of approximately | |
(2) | net sales, with a “threshold” of approximately | |
(3) | ||
a specified level of gross margin return on inventory dollars, or GMROI dollars. |
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Payout at | Payout at | Payout at | Bonus Criteria | Payout at | Payout at | Payout at | Bonus Criteria | |||||||||||||||||||||||||
Name | Threshold | Target | Maximum | (weighting) | Threshold | Target | Maximum | (weighting) | ||||||||||||||||||||||||
Tim Grumbacher | 30 | % | 40 | % | 80 | % | Net income (80 | )% | 20 | % | 40 | % | 80 | % | Net income (80 | )% | ||||||||||||||||
Net sales (20 | )% | Net sales (20 | )% | |||||||||||||||||||||||||||||
Byron L. Bergren | 112.5 | % | 150 | % | 200 | % | Net income (80 | )% | 50 | % | 100 | % | 200 | % | Net income (80 | )% | ||||||||||||||||
Net sales (20 | )% | Net sales (20 | )% | |||||||||||||||||||||||||||||
Anthony J. Buccina | 93.75 | % | 125 | % | 187.5 | % | EBITDA (50 | )% | 37.5 | % | 75 | % | 150 | % | Net income (50 | )% | ||||||||||||||||
GMROI dollars (25 | )% | GMROI dollars (25 | )% | |||||||||||||||||||||||||||||
Net sales (25 | )% | Net sales (25 | )% | |||||||||||||||||||||||||||||
Stephen R. Byers | 56.25 | % | 75 | % | 112.5 | % | EBITDA (60 | )% | 37.5 | % | 75 | % | 150 | % | Net income (60 | )% | ||||||||||||||||
GMROI dollars (20 | )% | GMROI dollars (20 | )% | |||||||||||||||||||||||||||||
Net sales (20 | )% | Net sales (20 | )% | |||||||||||||||||||||||||||||
Keith E. Plowman | 37.5 | % | 50 | % | 75 | % | Net income (80 | )% | 25 | % | 50 | % | 100 | % | Net income (80 | )% | ||||||||||||||||
Net sales (20 | )% | Net sales (20 | )% |
27
28
28
29
29
30
3031
3132
Change in | Change in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension | Pension | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value and | Value and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonqualified | Nonqualified | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Equity | Deferred | Non-Equity | Deferred | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock | Option | Incentive Plan | Compensation | All Other | Stock | Option | Incentive Plan | Compensation | All Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and | Salary | Bonus | Awards | Awards | Compensation | Earnings | Compensation | Total | Salary | Bonus | Awards | Awards | Compensation | Earnings | Compensation | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal Position | Year | ($)(1) | ($)(2) | ($)(3) | ($)(4) | ($)(5) | ($)(6) | ($)(7) | ($) | Year | ($)(1) | ($)(2) | ($)(3) | ($)(4) | ($)(5) | ($) | ($)(6) | ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tim Grumbacher, | 2007 | 650,000 | — | 1,344,830 | — | — | 142,934 | 28,092 | 2,165,856 | 2008 | 650,000 | — | 1,344,830 | — | — | 10,820 | (7) | 15,535 | 2,021,185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Chairman of the Board | 2006 | 675,000 | — | 1,344,830 | — | 361,563 | 139,004 | 13,533 | 2,533,930 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Chairman of | 2007 | 650,000 | — | 1,344,830 | — | — | 142,934 | 28,092 | 2,165,856 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
the Board | 2006 | 675,000 | — | 1,344,830 | — | 361,563 | 139,004 | 13,533 | 2,533,930 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Byron L. Bergren, | 2007 | 1,000,000 | 150,000 | 1,228,700 | 278,157 | — | — | 164,848 | 2,821,705 | 2008 | 1,000,000 | — | 584,994 | 106,886 | — | — | 240,105 | 1,931,985 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
President and Chief Executive Officer | 2006 | 971,154 | — | 977,358 | 553,532 | 1,500,000 | — | 91,313 | 4,093,357 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
President and Chief | 2007 | 1,000,000 | 150,000 | 1,228,700 | 278,157 | — | — | 164,848 | 2,821,705 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Officer | 2006 | 971,154 | — | 977,358 | 553,532 | 1,500,000 | — | 91,313 | 4,093,357 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anthony J. Buccina, | 2007 | 780,000 | — | 768,445 | 538,562 | — | 888,887 | 29,516 | 3,005,410 | 2008 | 780,000 | — | 505,913 | 324,662 | — | — | (8) | 20,241 | 1,630,816 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Vice Chairman and President — Merchandising | 2006 | 688,750 | 306,355 | 603,332 | 569,379 | 1,060,313 | 490,315 | 28,652 | 3,747,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vice Chairman, | 2007 | 780,000 | — | 768,445 | 538,562 | — | 888,887 | 29,516 | 3,005,410 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
President — Merchandising | 2006 | 688,750 | 306,355 | 603,332 | 569,379 | 1,060,313 | 490,315 | 28,652 | 3,747,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stephen R. Byers | 2007 | 525,000 | — | 96,772 | 320,370 | — | — | 21,184 | 963,326 | 2008 | 525,000 | — | 120,818 | 228,941 | — | — | 12,890 | 887,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vice Chairman — Stores, Distribution, Real Estate and Construction | 2006 | 422,891 | 138,579 | 17,442 | 148,985 | 307,089 | — | 16,443 | 1,051,429 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vice Chairman — | 2007 | 525,000 | — | 96,772 | 320,370 | — | — | 21,184 | 963,326 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stores, Visual, Construction, Real Estate, Distribution & Logistics, Loss Prevention | 2006 | 422,891 | 138,579 | 17,442 | 148,985 | 307,089 | — | 16,443 | 1,051,429 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keith E. Plowman, | 2007 | 401,538 | — | 176,654 | 103,964 | — | — | 20,337 | 702,493 | 2008 | 438,750 | — | 148,852 | 128,860 | — | — | 10,948 | 727,410 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Vice President, Chief Financial Officer and Principal Accounting Officer | 2006 | 380,769 | — | 127,516 | 29,144 | 209,625 | — | 23,103 | 770,157 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Vice | 2007 | 401,538 | — | 176,654 | 103,964 | — | — | 20,337 | 702,493 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
President, Chief Financial Officer and Principal Accounting Officer | 2006 | 380,769 | — | 127,516 | 29,144 | 209,625 | — | 23,103 | 770,157 |
(1) | Actual base salary payments made in 2008, 2007 and 2006. | |
(2) | “Bonus” refers to non-performance-based guaranteed cash payments. In 2007, Mr. Bergren received a $150,000 bonus pursuant to the terms of the amendment of his employment agreement. In 2006, Mr. Buccina received a $184,118 bonus with respect to his performance at Carson’s and a $122,237 retention payment following the Carson’s acquisition by the Company, and Mr. Byers received a $138,579 retention payment. Other cash incentives were performance-based and are reflected under the column labeled “Non-Equity Incentive Plan Compensation.” | |
(3) | The amounts reported in this column reflect the amount of compensation cost recognized in 2008, 2007 and 2006 for financial statement reporting purposes in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 123(R), “Share-Based Payment” (“SFAS No. 123R”) for restricted stock and RSUs granted in | |
(4) | The amounts reported in this column reflect the amount of compensation cost recognized in 2008, 2007 and 2006 for financial statement reporting purposes in accordance with SFAS No. 123R for stock options granted in | |
(5) | The amounts reported in this column reflect the annual performance-based bonus awards to the named executive officers under the Company’s Cash Bonus Plan, which is | |
3233
The compensation reflected in the “All Other Compensation” column for each of the named executive officers for |
Supplemental | Club | Life | ||||||||||||||||||||||
Automobile | Medical | Membership | Rental Housing in | Insurance | ||||||||||||||||||||
Name | Usage($) | Benefits($) | Expenses($) | Milwaukee($) | Premiums($) | Relocation($) | ||||||||||||||||||
Tim Grumbacher | 2,393 | — | — | — | 13,142 | — | ||||||||||||||||||
Byron L. Bergren | 24,596 | 8,000 | 1,420 | 243 | 16,731 | 189,115 | ||||||||||||||||||
Anthony J. Buccina | 9,558 | 2,242 | — | — | 8,441 | — | ||||||||||||||||||
Stephen R. Byers | 6,200 | 2,300 | — | — | 4,390 | — | ||||||||||||||||||
Keith E. Plowman | 6,200 | 2,300 | — | — | 2,448 | — |
(7) | Amount reflects the increase in the actuarial present value during 2008 of Mr. Grumbacher’s retiree continuing medical benefits. See the Pension Benefits Table on page 37 for more information about these benefits. | |
(8) | The actuarial valuation of the change during 2008 in Mr. Buccina’s benefits under |
401(k) Plan | ||||||||||||||||||||||||||||||||
Rental | Company | |||||||||||||||||||||||||||||||
Supplemental | Club | Housing in | Life | Match and | ||||||||||||||||||||||||||||
Automobile | Medical | Membership | Reimbursement of | Milwaukee | Insurance | Airfare for | Profit | |||||||||||||||||||||||||
Name | Usage($) | Benefits($) | Expenses($) | Legal Expenses($) | ($) | Premiums($) | Spouse($) | Sharing($) | ||||||||||||||||||||||||
Tim Grumbacher | — | — | — | 17,520 | — | 472 | 176 | 9,924 | ||||||||||||||||||||||||
Byron L. Bergren | 19,256 | 8,030 | 4,340 | 13,000 | 99,804 | 10,494 | — | 9,924 | ||||||||||||||||||||||||
Anthony J. Buccina | 9,558 | 2,242 | — | — | — | 7,792 | — | 9,924 | ||||||||||||||||||||||||
Stephen R. Byers | 6,200 | 2,300 | — | — | — | 2,760 | — | 9,924 | ||||||||||||||||||||||||
Keith E. Plowman | 6,200 | 2,300 | — | — | — | 1,470 | 443 | 9,924 |
All | Grant | All | Grant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All | Other | Date | All | Other | Date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Option | Fair | Other | Option | Fair | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future | Stock | Awards; | Exercise or | Value of | Estimated Possible | Stock | Awards; | Exercise or | Value of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Possible | Payouts Under Equity | Awards; | Number of | Base | Stock | Estimated Possible | Payouts Under Equity | Awards; | Number of | Base | Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payouts Under Non-Equity | Incentive Plan | Number of | Securities | Price of | and | Payouts Under Non-Equity | Incentive Plan | Number of | Securities | Price of | and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive Plan Awards(1) | Awards(2) | Shares of | Underlying | Option | Option | Incentive Plan Awards(1) | Awards(2) | Shares of | Underlying | Option | Option | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant | Threshold | Target | Maximum | Threshold | Target | Stock or | Options | Awards | Awards | Grant | Threshold | Target | Maximum | Threshold | Target | Stock or | Options | Awards | Awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Date | ($) | ($) | ($) | (#) | (#) | Units (#)(3) | (#)(4) | ($/share) | ($)(5) | Date | ($) | ($) | ($) | (#) | (#) | Units (#)(3) | (#)(4) | ($/share) | ($)(5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tim Grumbacher | N/A | 195,000 | 260,000 | 520,000 | — | — | — | — | — | — | N/A | 130,000 | 260,000 | 520,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Byron L. Bergren | N/A | 1,125,000 | 1,500,000 | 2,000,000 | — | — | — | — | — | — | N/A | 500,000 | 1,000,000 | 2,000,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7/19/07 | — | — | — | 15,486 | 20,648 | (6) | — | — | — | 675,000 | 3/24/08 | — | — | — | 10,325 | 20,649 | (6) | — | — | — | 130,502 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
7/19/07 | — | — | — | — | — | 41,297 | — | — | 1,350,000 | 3/24/08 | — | — | — | 91,464 | 182,927 | (7) | — | — | — | 1,156,099 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anthony J. Buccina | N/A | 731,250 | 975,000 | 1,462,500 | — | — | — | — | — | — | N/A | 292,500 | 585,000 | 1,170,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/27/07 | — | — | — | — | — | 11,019 | 55.85 | 291,122 | 3/17/08 | — | — | — | — | — | — | 50,000 | 4.96 | 93,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/27/07 | — | — | — | — | — | 2,865 | — | — | 160,010 | 3/17/08 | — | — | — | — | — | 10,000 | — | — | 49,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stephen R. Byers | N/A | 295,313 | 393,750 | 590,625 | — | — | — | — | — | — | N/A | 196,875 | 393,750 | 787,500 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/27/07 | — | — | — | — | — | 11,019 | 55.85 | 291,122 | 3/17/08 | — | — | — | — | — | — | 50,000 | 4.96 | 93,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/27/07 | — | — | — | — | — | 2,865 | — | — | 160,010 | 3/17/08 | — | — | — | — | — | 10,000 | — | — | 49,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keith E. Plowman | N/A | 151,875 | 202,500 | 303,750 | — | — | — | — | — | — | N/A | 112,500 | 225,000 | 450,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/27/07 | — | — | — | — | — | 11,019 | 55.85 | 291,122 | 3/17/08 | — | — | — | — | — | — | 40,000 | 4.96 | 74,800 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/27/07 | — | — | — | — | — | 2,865 | — | — | 160,010 | 3/17/08 | — | — | — | — | — | 7,000 | — | — | 34,720 |
(1) | Represents the range of cash payouts targeted for | |
(2) | Represents the range of performance-based restricted share payouts targeted for |
34
(3) | Represents awards of restricted shares made under the Stock Incentive Plan. Information regarding the vesting schedules of these awards is included in the footnotes to the Outstanding Equity Awards at Fiscal Year-End table on page |
33
circumstances. Additional information regarding the vesting acceleration provisions applicable to equity awards is included under the heading “Potential Payments upon Termination or Change in Control.” | ||
(4) | Represents options issued under the Stock Incentive Plan. Information regarding the vesting schedules and expiration of these options is included in the footnotes to the Outstanding Equity Awards at Fiscal Year-End table on page | |
(5) | Represents the grant date fair value of each equity award computed in accordance with SFAS 123R. The value of the options shown represents the grant date fair value estimated using the Black-Scholes option pricing model in accordance with the provisions of SFAS 123R. For a discussion of valuation assumptions used in the SFAS 123R calculations, see Note 17 to our audited financial statements included in ourForm 10-K filed with the SEC on April | |
(6) | Represents the target award of the | |
(7) | Represents the target award of the first tranche of two tranches of performance-based restricted shares granted to Mr. Bergren on February 4, 2008. The performance goals for the first tranche were established by the HRCC in |
35
Option Awards | Stock Awards | Option Awards | Stock Awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Incentive | Equity | Incentive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive | Plan | Incentive | Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan | Awards: | Plan | Awards: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Awards: | Market | Awards: | Market | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | or Payout | Number | or Payout | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Market | of | Value of | Equity | Market | of | Value of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive | Value of | Unearned | Unearned | Incentive | Value of | Unearned | Unearned | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan | Shares | Shares, | Shares, | Plan | Shares | Shares, | Shares, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Awards: | Number of | or | Units or | Units or | Awards: | Number of | or | Units or | Units or | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Shares or | Units of | Other | Other | Number of | Shares or | Units of | Other | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | of Securities | Units of | Stock | Rights | Rights | Number of | Number of | Securities | Units of | Stock | Rights | Rights | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Securities | Underlying | Stock | That | That | That | Securities | Securities | Underlying | Stock | That | That | That | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying | Underlying | Unexercised | Option | That | Have | Have | Have | Underlying | Underlying | Unexercised | Option | That | Have | Have | Have | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unexercised | Unexercised | Unearned | Exercise | Option | Have Not | Not | Not | Not | Unexercised | Unexercised | Unearned | Exercise | Option | Have Not | Not | Not | Not | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options- | Options- | Options | Price | Expiration | Vested | Vested | Vested | Vested | Options- | Options- | Options | Price | Expiration | Vested | Vested | Vested | Vested | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Exercisable | Unexercisable | (#) | ($) | Date | (#) | ($)(1) | (#) | ($)(1) | Exercisable | Unexercisable | (#) | ($) | Date | (#) | ($)(1) | (#) | ($)(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tim Grumbacher | — | — | — | — | — | 365,205 | (2) | 2,779,210 | — | — | — | — | — | — | — | 365,205 | (2) | 500,331 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Byron L. Bergren | 125,000 | — | — | 13.05 | 8/23/2014 | — | — | — | — | 125,000 | — | — | 13.05 | 8/23/2014 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
41,334 | 53,666 | (3) | — | 20.44 | 7/6/2012 | — | — | — | — | 62,000 | 33,000 | (3) | — | 20.44 | 7/6/2012 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 40,519 | (4) | 308,350 | — | — | — | — | — | — | — | 20,648 | (4) | 28,288 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 35,102 | (5) | 267,126 | — | — | — | — | — | — | — | — | — | 182,927 | (5) | 250,610 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Anthony J. Buccina | 96,000 | — | — | 27.15 | 5/31/2013 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | 20,649 | (6) | 157,139 | — | 11,019 | (6) | — | 55.85 | 3/26/2014 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Anthony J. Buccina | 32,000 | 64,000 | (7) | — | 27.15 | 5/31/2013 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 11,019 | (8) | — | 55.85 | 3/26/2014 | — | — | — | — | — | 50,000 | (7) | — | 4.96 | 3/17/2015 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 55,000 | (9) | 418,550 | — | — | — | — | — | — | — | 2,865 | (8) | 3,925 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,865 | (10) | 21,803 | — | — | — | — | — | — | — | 10,000 | (9) | 13,700 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stephen R. Byers | 5,000 | 10,000 | (11) | — | 31.84 | 4/2/2013 | — | — | — | — | 10,000 | 5,000 | (10) | — | 31.84 | 4/2/2013 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
7,167 | 14,333 | (12) | — | 29.90 | 10/1/2013 | — | — | — | — | 14,334 | 7,166 | (11) | — | 29.90 | 10/1/2013 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 11,019 | (8) | — | 55.85 | 3/26/2014 | — | — | — | — | — | 11,019 | (6) | — | 55.85 | 3/26/2014 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 5,250 | (13) | 39,953 | — | — | — | 50,000 | (7) | — | 4.96 | 3/17/2015 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,865 | (10) | 21,803 | — | — | — | — | — | — | — | 5,250 | (12) | 7,193 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,865 | (8) | 3,925 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 10,000 | (9) | 13,700 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keith E. Plowman | 3,334 | 6,666 | (14) | — | 17.91 | 5/26/2012 | — | — | — | — | 6,667 | 3,333 | (13) | — | 17.91 | 5/26/2012 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 11,019 | (8) | — | 55.85 | 3/26/2014 | — | — | — | — | — | 11,019 | (6) | — | 55.85 | 3/26/2014 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 8,000 | (15) | 60,880 | — | — | — | 40,000 | (7) | — | 4.96 | 3/17/2015 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,865 | (10) | 21,803 | — | — | — | — | — | — | — | 8,000 | (14) | 10,960 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,865 | (8) | 3,925 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 7,000 | (9) | 9,590 | — | — |
(1) | Market values reflect the closing price of the Company’s common stock on the Nasdaq Stock Market on | |
(2) | Restricted shares vest 100% on February 1, 2010. |
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(3) | Stock options vest | |
(4) | Restricted shares vest 100% on February | |
These performance-based restricted shares vest based on | ||
(6) | Stock options vest 100% on March 26, 2010. | |
(7) | Stock options vest | |
(8) | ||
(9) | Restricted shares vest | |
(10) | ||
(11) | Stock options vest | |
Restricted shares vest 100% on October 2, 2009. | ||
Stock options vest | ||
Restricted shares vest 100% on April 2, 2009. |
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Present Value of | Present Value of | |||||||||||||||||||||||||||
Number of Years | Accumulated | Payments During | Number of Years | Accumulated | Payments During | |||||||||||||||||||||||
Name | Plan Name | Credited Service | Benefit ($) | Last Fiscal Year ($) | Plan Name | Credited Service | Benefit ($) | Last Fiscal Year ($) | ||||||||||||||||||||
Tim Grumbacher | Retiree Medical Benefits | N/A | 281,938 | — | Retiree Medical Benefits | N/A | 292,758 | — | ||||||||||||||||||||
Byron L. Bergren | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Anthony J. Buccina | Carson’s Pension Plan | 13 | (1) | 212,194 | — | Carson’s Pension Plan | 13 | (1) | 198,633 | — | ||||||||||||||||||
Carson’s SERP | 12 | (2) | 2,980,652 | — | Carson’s SERP | 12 | (2) | 2,931,821 | — | |||||||||||||||||||
Stephen R. Byers | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Keith E. Plowman | — | — | — | — | — | — | — | — |
(1) | Although Mr. Buccina has | |
(2) | Although Mr. Buccina has |
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Option Awards | Stock Awards | Option Awards | Stock Awards | |||||||||||||||||||||||||||||
Number of Shares | Value Realized | Number of Shares | Value Realized | Number of Shares | Value Realized | Number of Shares | Value Realized | |||||||||||||||||||||||||
Acquired on Exercise | on Exercise | Acquired on Vesting | on Vesting | Acquired on Exercise | on Exercise | Acquired on Vesting | on Vesting | |||||||||||||||||||||||||
(#) | ($) | (#) | ($) | (#) | ($) | (#) | ($) | |||||||||||||||||||||||||
Tim Grumbacher | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Byron L. Bergren | — | — | 35,000 | 271,250 | — | — | 40,519 | 282,823 | ||||||||||||||||||||||||
— | — | 6,195 | 47,144 | — | — | 14,454 | 19,802 | |||||||||||||||||||||||||
Anthony J. Buccina | — | — | 10,000 | 486,700 | — | — | 21,666 | 144,296 | ||||||||||||||||||||||||
— | — | 33,334 | 45,668 | |||||||||||||||||||||||||||||
Stephen R. Byers | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Keith E. Plowman | — | — | 6,000 | 83,700 | — | — | — | — |
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• | 41,297 time-based restricted shares of the Company’s common stock which had an aggregate value of $1,350,000 as of July 19, 2007. Fifteen percent (6,195 shares) vested on February 2, | |
• | 41,297 performance-based restricted shares with a value of $1,350,000 as of July 19, 2007. | |
• | 365,854 performance-based restricted shares with a value of $2,700,000 as of February 4, 2008. One-half of these restricted shares |
• | 200,000 time-based restricted shares of the Company’s common stock. Fifty percent (100,000 shares) will vest on February 1, 2010, and the remainder (100,000 shares) will vest on February 1, 2011, provided Mr. Bergren is continuously employed by the Company through this date, except that vesting of such shares may be accelerated in certain circumstances. | |
• | 200,000 performance-based restricted shares of the Company’s common stock. One hundred percent of these restricted shares will vest based on the achievement of performance goals for 2009. |
• | 200,000 time-based restricted shares of the Company’s common stock shall vest one hundred percent on February 5, 2012, provided Mr. Bergren is continuously employed by the Company through this date, except that vesting of such shares may be accelerated in certain circumstances. | |
• | 200,000 performance-based restricted shares of the Company’s common stock shall vest based on the achievement of performance goals. These shares shall vest fifty percent (100,000 shares) based upon the achievement of performance goals for 2010 and fifty percent (100,000 shares) based upon the achievement of performance goals for 2011. The metrics for earning such performance-based shares shall be determined each year by the HRCC. The terms of the grants are set forth in the Restricted Stock Agreements. |
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Mr. Grumbacher | Mr. Grumbacher | |||||||||||||||||||||||||||||||||||||||||||||||
Ceases to Serve as | Ceases to Serve as | |||||||||||||||||||||||||||||||||||||||||||||||
Chairman of the | Change in | Chairman of the | Change in | |||||||||||||||||||||||||||||||||||||||||||||
Mr. Grumbacher | Board by Mutual | Control | Change in | Mr. Grumbacher | Board by Mutual | Control | Change in | |||||||||||||||||||||||||||||||||||||||||
Ceases to Serve as | Consent with the | Without | Control and | Ceases to Serve as | Consent with the | Without | Control and | |||||||||||||||||||||||||||||||||||||||||
Chairman of the | Company or as a | Termination of | Mr. Grumbacher | Chairman of the | Company or as a | Termination of | Mr. Grumbacher | |||||||||||||||||||||||||||||||||||||||||
Board not as a | Result of the | Mr. Grumbacher’s | Ceases to be the | Board not as a | Result of the | Mr. Grumbacher’s | Ceases to be the | |||||||||||||||||||||||||||||||||||||||||
Result of Breach of | Company’s | Position as | Executive Chairman | |||||||||||||||||||||||||||||||||||||||||||||
Executive Benefits and Payments Upon | the Agreement by | Breach of | Executive | by Reason of Such | ||||||||||||||||||||||||||||||||||||||||||||
Executive Benefits and | Result of Breach of | Company’s | Position as | Executive Chairman | ||||||||||||||||||||||||||||||||||||||||||||
Payments Upon | the Agreement by | Breach of | Executive | by Reason of Such | ||||||||||||||||||||||||||||||||||||||||||||
Termination | the Company | the Agreement | Chairman | Change in Control | Disability | Death | the Company | the Agreement | Chairman | Change in Control | Disability | Death | ||||||||||||||||||||||||||||||||||||
Cash Severance | — | — | — | $ | 1,300,000 | — | — | — | — | — | $ | 650,000 | — | — | ||||||||||||||||||||||||||||||||||
Pro-rated Non-Equity Incentive Compensation (Cash Bonus) | — | — | — | 520,000 | — | — | — | — | — | 260,000 | — | — | ||||||||||||||||||||||||||||||||||||
Value of Accelerated Restricted Stock(1) | — | $ | 2,779,210 | $ | 2,779,210 | 2,779,210 | $ | 2,779,210 | $ | 2,779,210 | — | $ | 500,331 | $ | 500,331 | 500,331 | $ | 500,331 | $ | 500,331 | ||||||||||||||||||||||||||||
Continuing Health and Welfare Benefits for Mr. Grumbacher and his Spouse for Life(2) | $ | 281,938 | 281,938 | — | 281,938 | 281,938 | 281,938 | $ | 292,758 | 292,758 | — | 292,758 | 292,758 | 292,758 | ||||||||||||||||||||||||||||||||||
Office Space and Secretarial Support(3) | 416,756 | 416,756 | — | 416,756 | 416,756 | — | 441,201 | 441,201 | — | 441,201 | 441,201 | — | ||||||||||||||||||||||||||||||||||||
Life Insurance | — | — | — | — | — | 1,073,000 | — | — | — | — | — | 1,073,000 | ||||||||||||||||||||||||||||||||||||
Total | $ | 698,694 | $ | 3,477,904 | $ | 2,779,210 | $ | 5,297,904 | $ | 3,477,904 | $ | 4,134,148 | $ | 733,959 | $ | 1,234,290 | $ | 500,331 | $ | 2,144,290 | $ | 1,234,290 | $ | 1,866,089 |
(1) | The intrinsic value of unvested restricted stock subject to accelerated vesting, based on the closing price of the Company’s common stock on the Nasdaq Stock Market on | |
(2) | The actuarial present value of continuing health and welfare benefits for Mr. Grumbacher and his wife for their lifetimes. | |
(3) | The actuarial present value of office space and secretarial support for Mr. Grumbacher’s lifetime at the Company’s office in York, Pennsylvania. |
Involuntary | Involuntary | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Termination | Termination | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Voluntary | Without | Voluntary | Without | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Termination | Cause or | Change in | Change in | Termination | Cause or | Change in | Change in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Termination | without | Resignation | Control | Control | without | Resignation | Control | Control | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | Good | for Good | Without | with | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Benefits and Payments Upon Termination | Cause | Reason | Reason(1) | Termination | Termination(2) | Retirement | Disability | Death | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Benefits and | For Cause | Good | for Good | Without | with | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments Upon Termination | Termination | Reason | Reason(1) | Termination | Termination(2) | Retirement | Disability | Death | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Severance | — | — | $ | 2,000,000 | — | $ | 4,731,319 | (3) | — | — | — | — | — | $ | 2,000,000 | — | $ | 4,485,000 | (3) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Pro-rated Non-Equity Incentive Compensation (Cash Bonus) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Value of Accelerated Options(4) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Value of Accelerated Restricted Stock(5) | — | — | 575,476 | $ | 889,746 | 889,746 | — | $ | 889,746 | $ | 889,746 | — | — | 28,288 | $ | 432,493 | 432,493 | — | $ | 432,493 | $ | 432,493 | ||||||||||||||||||||||||||||||||||||||||||
Value of Performance RSUs(6) | — | $ | 154,171 | 154,171 | 308,342 | 308,342 | $ | 154,171 | 308,342 | 308,342 | — | $ | 27,755 | 27,755 | 27,755 | 27,755 | $ | 27,755 | 27,755 | 27,755 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued Vacation Pay | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing Health and Welfare Benefits | — | — | 29,435 | — | 44,153 | — | — | — | — | — | 25,546 | — | 38,319 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Life Insurance | — | — | — | — | — | — | — | 2,000,000 | — | — | — | — | — | — | — | 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | $ | 154,171 | $ | 2,759,082 | $ | 1,198,088 | $ | 5,973,560 | $ | 154,171 | $ | 1,198,088 | $ | 3,198,088 | — | $ | 27,755 | $ | 2,081,589 | $ | 460,248 | $ | 4,983,567 | $ | 27,755 | $ | 460,248 | $ | 2,460,248 |
(1) | Payment requires the execution of a general release. | |
(2) | With regard to change in control, “termination” means either (i) Mr. Bergren is discharged without cause during the term of his employment agreement following the closing of the change in control transaction, or (ii) Mr. Bergren resigns for any reason after the expiration of three months following the change in control, including, without limitation, resignation by Mr. Bergren with or without |
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(3) | Pursuant to Mr. Bergren’s employment agreement, as amended, if the aggregate present value of the “parachute payments” determined under Section 280G exceeds three times his “base amount,” as defined in Section 280G, the payouts upon a change in control shall be reduced to be less than three times his base amount. This calculation did not require such reduction. | |
(4) | The intrinsic value of unvested options subject to accelerated vesting, based on the difference between the exercise price of the options and the closing price of the Company’s common stock on the Nasdaq Stock Market on |
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(5) | The intrinsic value of unvested restricted stock subject to accelerated vesting, based on the closing price of the Company’s common stock on the Nasdaq Stock Market on | |
(6) | Mr. Bergren’s RSUs for 2006 vested on February 3, 2007 without regard to acceleration and their vesting would not have been affected by Mr. Bergren’s termination or a change in control on |
Voluntary | Voluntary | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Termination | Involuntary | Resignation | Change in | Change in | Termination | Involuntary | Change in | Change in | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Without | Termination | for | Control | Control | without | Termination | Resignation | Control | Control | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Benefits and Payments | For Cause | Good | Without | Good | Without | with | For Cause | Good | Without | for Good | Without | with | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Upon Termination | Termination | Reason | Cause(1) | Reason(1) | Termination | Termination(2) | Retirement | Disability | Death | Termination | Reason | Cause(1) | Reason(1) | Termination | Termination(2) | Retirement | Disability | Death | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Severance | — | — | $ | 1,560,000 | $ | 1,560,000 | — | $ | 1,560,000 | — | — | — | — | — | $ | 1,560,000 | $ | 1,560,000 | — | $ | 1,560,000 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Pro-rated Non-Equity Incentive Compensation (Cash Bonus) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value of Accelerated Options(3) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value of Accelerated Restricted Stock(4) | — | — | — | — | $ | 440,353 | 440,353 | — | $ | 440,353 | $ | 440,353 | — | — | — | — | $ | 17,625 | 17,625 | — | $ | 17,625 | $ | 17,625 | ||||||||||||||||||||||||||||||||||||||||||||||||
Carson’s SERP(5) | $ | 2,980,652 | $ | 2,980,652 | 2,980,652 | 2,980,652 | — | 2,980,652 | $ | 2,980,652 | 2,980,652 | 2,980,652 | $ | 2,931,821 | $ | 2,931,821 | 2,931,821 | 2,931,821 | 2,931,821 | 2,931,821 | $ | 2,931,821 | 2,931,821 | 2,931,821 | ||||||||||||||||||||||||||||||||||||||||||||||||
Carson’s Pension Plan | 212,194 | 212,194 | 212,194 | 212,194 | — | 212,194 | 212,194 | 212,194 | 212,194 | 198,633 | 198,633 | 198,633 | 198,633 | — | 198,633 | 198,633 | 198,633 | 198,633 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life Insurance | — | — | — | — | — | — | — | — | 1,560,000 | — | — | — | — | — | — | — | — | 1,560,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 3,192,846 | $ | 3,192,846 | $ | 4,752,846 | $ | 4,752,846 | $ | 440,353 | $ | 5,193,199 | $ | 3,192,846 | $ | 3,633,199 | $ | 5,193,199 | $ | 3,130,454 | $ | 3,130,454 | $ | 4,690,454 | $ | 4,690,454 | $ | 2,949,446 | $ | 4,708,079 | $ | 3,130,454 | $ | 3,148,079 | $ | 4,708,079 |
(1) | Payment requires execution of a general release. | |
(2) | If, within six months following a change | |
(3) | The intrinsic value of unvested options subject to accelerated vesting, based on the difference between the exercise price of the options and the closing price of the Company’s common stock on the Nasdaq Stock Market on | |
(4) | The intrinsic value of unvested restricted stock subject to accelerated vesting, based on the closing price of the Company’s common stock on the Nasdaq Stock Market on | |
(5) | The Company terminated the Carson’s SERP in 2008. Pursuant to the termination of the Carson’s SERP, during the first quarter of 2009, Mr. Buccina received a lump-sum payment of $2,931,821, which represented the actuarial equivalent present value of his accrued benefits as of January 31, 2009. Payment would not have been affected by Mr. Buccina’s termination or a change in control on January 31, 2009. | |
(6) | The actuarial equivalent present value of the accrued benefit. |
Voluntary | Voluntary | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Termination | Involuntary | Change in | Change in | Termination | Involuntary | Change in | Change in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Benefits | Without | Termination | Resignation | Control | Control | Without | Termination | Resignation | Control | Control | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and Payments | For Cause | Good | Without | for Good | Without | with | For Cause | Good | Without | for Good | Without | with | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Upon Termination | Termination | Reason | Cause(1) | Reason(1) | Termination | Termination(2) | Retirement | Disability | Death | Termination | Reason | Cause(1) | Reason(1) | Termination | Termination(2) | Retirement | Disability | Death | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Severance | — | — | $ | 787,500 | $ | 787,500 | — | $ | 787,500 | — | — | — | — | — | $ | 525,000 | $ | 525,000 | — | $ | 525,000 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Pro-rated Non-Equity Incentive Compensation (Cash Bonus) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value of Accelerated Options(3) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value of Accelerated Restricted Stock(4) | — | — | — | — | $ | 61,755 | (5) | 61,755 | (5) | — | $ | 61,755 | $ | 61,755 | — | — | — | — | $ | 24,818 | (5) | 24,818 | (5) | — | $ | 24,818 | $ | 24,818 | ||||||||||||||||||||||||||||||||||||||||||||
Life Insurance | — | — | — | — | — | — | — | — | 1,000,000 | — | — | — | — | — | — | — | — | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | $ | 787,500 | $ | 787,500 | $ | 61,755 | $ | 849,255 | — | $ | 61,755 | $ | 1,061,755 | — | — | $ | 525,000 | $ | 525,000 | $ | 24,818 | $ | 549,818 | — | $ | 24,818 | $ | 1,024,818 |
(1) | Payment requires execution of a general release. |
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(2) | If, within six months following a change | |
(3) | The intrinsic value of unvested options subject to accelerated vesting, based on the difference between the exercise price of the options and the closing price of the Company’s common stock on the Nasdaq Stock Market on | |
(4) | The intrinsic value of unvested restricted stock subject to accelerated vesting, based on the closing price of the Company’s common stock on the Nasdaq Stock Market on | |
(5) | The HRCC has discretion to fully vest the restricted stock of the Company upon a change in control. This calculation assumes the HRCC would choose to fully vest all restricted stock upon a change in control on |
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Change in | Change in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Control | Control | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Involuntary | Change in | With | Involuntary | Change in | With | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Benefits and | Termination | Control | Termination | Termination | Control | Termination | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments Upon | For Cause | Voluntary | Without | Without | Without | For Cause | Voluntary | Without | Without | Without | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Termination | Termination | Termination | Cause | Termination | Cause | Retirement | Disability | Death | Termination | Termination | Cause | Termination | Cause | Retirement | Disability | Death | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash Severance | — | — | $ | 116,826 | (1) | — | $ | 116,826 | (1) | — | — | — | — | — | $ | 142,788 | (1) | — | $ | 142,788 | (1) | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Pro-rated Non-Equity Incentive Compensation (Cash Bonus) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Value of Accelerated Options(2) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Value of Accelerated Restricted Stock(3) | — | — | — | $ | 82,683 | (4) | 82,683 | (4) | — | $ | 82,683 | $ | 82,683 | — | — | — | $ | 24,475 | (4) | 24,475 | (4) | — | $ | 24,475 | $ | 24,475 | ||||||||||||||||||||||||||||||||||||||
Life Insurance | — | — | — | — | — | — | — | 810,000 | — | — | — | — | — | — | — | 900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | $ | 116,826 | $ | 82,683 | $ | 199,509 | — | $ | 82,683 | $ | 892,683 | — | — | $ | 142,788 | $ | 24,475 | $ | 167,263 | — | $ | 24,475 | $ | 924,475 |
(1) | Assumes Mr. Plowman signs a general release and is not rehired by the Company. | |
(2) | The intrinsic value of unvested options subject to accelerated vesting, based on the difference between the exercise price of the options and the closing price of the Company’s common stock on the Nasdaq Stock Market on | |
(3) | The intrinsic value of unvested restricted stock subject to accelerated vesting, based on the closing price of the Company’s common stock on the Nasdaq Stock Market on | |
(4) | The HRCC has discretion to fully vest the restricted stock of the Company upon a change in control. This calculation assumes the HRCC would choose to fully vest all restricted stock upon a change in control on |
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Number of | Number of | |||||||||||||||||||||||
securities | securities | |||||||||||||||||||||||
remaining available | remaining available | |||||||||||||||||||||||
Number of shares of | for future issuance | Number of shares of | for future issuance | |||||||||||||||||||||
common stock to be | under equity | common stock to be | under equity | |||||||||||||||||||||
issued upon | Weighted-average | compensation plans | issued upon | Weighted-average | compensation plans | |||||||||||||||||||
exercise of | exercise price of | (excluding | exercise of | exercise price of | (excluding | |||||||||||||||||||
outstanding | outstanding | securities | outstanding | outstanding | securities | |||||||||||||||||||
options, warrants | options, warrants | reflected in | options, warrants | options, warrants | reflected in | |||||||||||||||||||
and rights | and rights | column (a)) | and rights | and rights | column (a)) | |||||||||||||||||||
(a) | (b) | (c) | (a) | (b) | (c) | |||||||||||||||||||
Equity compensation plans approved by security holders | ||||||||||||||||||||||||
Stock options | 700,558 | $ | 27.03 | — | (1) | 1,134,106 | $ | 17.16 | — | (1) | ||||||||||||||
Restricted shares | 594,658 | — | — | (1) | 548,788 | — | — | (1) | ||||||||||||||||
Restricted stock units | 102,525 | — | — | (1) | 216,253 | — | — | (1) | ||||||||||||||||
Subtotal | 1,397,741 | — | 923,941 | 1,899,147 | — | 1,130,252 | ||||||||||||||||||
Equity compensation plans not approved by security holders | — | — | — | — | — | — | ||||||||||||||||||
Total | 1,397,741 | — | 923,941 | 1,899,147 | — | 1,130,252 | ||||||||||||||||||
(1) | The referenced plans do not allocate available shares among stock options, restricted shares or RSUs. |
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A. | “Affiliate” means a corporation that is a parent corporation or a subsidiary corporation with respect to the Company within the meaning of Section 424(e) or (f) of the Code. | ||
B. | “Award” means an award of Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Phantom Stock or Dividend Equivalent Rights granted under the Plan, designated by the Committee at the time of such grant as an Award, and containing the terms specified herein for Awards. | ||
C. | “Award Document” means the document described in Section 9 that sets forth the terms and conditions of each grant of an Award. | ||
D. | “Board of Directors” means the Board of Directors of the Company. |
E. | “Change of Control” shall have the meaning as set forth in Section 10. |
F. | “Code” means the Internal Revenue Code of 1986, as amended. |
G. | “Committee” shall have the meaning set forth in Section 3.A. |
H. | “Common Stock” means the Common Stock, $.01 par value per share, of the Company. | ||
I. | “Company” means The Bon-Ton Stores, Inc., a Pennsylvania corporation. |
“Disability” shall have the meaning set forth in Section 22(e)(3) of the Code. |
K. | “Dividend Equivalent Right” means a right, granted to a Grantee under Section 9.D hereof, to receive cash, Stock, other Awards or other property equal in value to dividends paid with respect to a specified number of shares of Stock, or other periodic payments. | ||
“Exchange Act” means the Securities Exchange Act of 1934, as amended. | |||
M. | “Fair Market Value” shall have the meaning set forth in Section 8.B. |
“Grantee” means a person who is granted Options, Restricted |
“ISO” means an Option granted under the Plan that |
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“Option” means either an ISO or a |
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“Optionee” means a person to whom an Option has been granted under the Plan, which Option has not been exercised and has not expired or terminated. |
“Option Document” means the document described in Section 8 that sets forth the terms and conditions of each grant of Options. |
“Option Price” means the price at which Shares may be purchased upon exercise of an Option, as calculated pursuant to Section 8.B. |
“Performance-Based Award” means an Award granted pursuant to Section 16. | |||
“Performance-Based Award Limitation” means the limitation on the number of Shares that may be granted pursuant to Performance-Based Awards to any one Participant, as set forth in Section 16.F. |
“Performance Period” means any period designated by the Committee as a period of time during which a Performance Target must be met for purposes of Section 16. |
“Performance Target” means the performance target established by the Committee for a particular Performance Period, as described in Section 16.B. |
“Phantom Stock” means the right, granted pursuant to Section 9.C of the Plan, to receive in cash the Fair Market Value of a share of Common Stock. | |||
Z. | “Prior Plan” means the Amended and Restated 2000 Stock Incentive and Performance-Based Award Plan of the Company. | ||
AA. | “Restricted Stock” means Shares issued to a person pursuant to an Award. |
“Restricted Stock Unit” or “RSU” means a bookkeeping entry representing the equivalent of one (1) share of Common Stock awarded to a grantee under Section 9.B of the Plan. |
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CC. | “Shares” means the shares of Common Stock that are the subject of Options or Awards. |
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Committee. The Plan shall be administered by the Board of Directors, or, in the discretion of the Board of Directors, by a committee composed of two (2) or more of the members of the Board of Directors. To the extent possible, and to the extent the Board of Directors deems it necessary or appropriate, each member of the Committee shall be a “Non- Employee Director” (as such term is defined inRule 16b-3 promulgated under the Exchange Act) and an “Outside Director” (as such term is defined in Treasury RegulationsSection 1.162-27 promulgated under the Code); however, the Board of Directors may designate two or more committees to operate and administer the Plan in its stead. Any of such committees designated by the Board of Directors is referred to as the “Committee,” and, to the extent that the Plan is administered by the Board of Directors, “Committee” shall also refer to the Board of Directors as appropriate in the particular context. The Board of Directors may from time to time remove members from or add members to the Committee. Vacancies on the Committee, however caused, shall be filled by the Board of Directors. | |||
B. | Meetings. The Committee shall hold meetings at such times and places as it may determine. Acts approved at a meeting by a majority of the members of the Committee or acts approved in writing by the unanimous consent of the members of the Committee shall be the valid acts of the Committee. | ||
C. | Grants. The Committee shall from time to time at its discretion direct the Company to grant Options or Awards pursuant to the terms of the Plan. The Committee shall have plenary authority to (i) determine the Optionees and Grantees to whom and the times at which Options and Awards shall be granted, (ii) determine the price at which Options shall be granted, (iii) determine the type of Option to be granted and the number of Shares subject thereto, (iv) determine the number of Shares to be granted pursuant to each Award and (v) approve the form and terms and conditions of the Option Documents and of each Award; all subject, however, to the express |
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provisions of the Plan. In making such determinations, the Committee may take into account the nature of the Optionee’s or Grantee’s services and responsibilities, the Optionee’s or Grantee’s present and potential contribution to the Company’s success and such other factors as it may deem relevant. The interpretation and construction by the Committee of any provisions of the Plan or of any Option or Award granted under it shall be final, binding and conclusive. |
D. | Exculpation. No member of the Committee shall be personally liable for monetary damages as such for any action taken or any failure to take any action in connection with the administration of the Plan or the granting of Options or Awards thereunder unless (i) the member of the Committee has breached or failed to perform the duties of his or her office within the meaning of subchapter B of Chapter 17 of the Pennsylvania Business Corporation Law of 1988, as amended, and (ii) the breach or failure to perform constitutes self-dealing, willful misconduct or recklessness;provided, however, |
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the liability of a member of the Committee for the payment of taxes pursuant to local, state or federal law. |
E. | Indemnification. Service on the Committee shall constitute service as a member of the Board of Directors. Each member of the Committee shall be entitled without further act on his or her part to indemnity from the Company to the fullest extent provided by applicable law and the Company’s Articles of Incorporationand/or Bylaws in connection with or arising out of any action, suit or proceeding with respect to the administration of the Plan or the granting of Options or Awards thereunder in which he or she may be involved by reason of his or her being or having been a member of the Committee, whether or not he or she continues to be such member of the Committee at the time of the action, suit or proceeding. |
A. | The aggregate maximum number of Shares for which Options or Awards may be granted pursuant to the Plan is two million, five hundred thousand (2,500,000) adjusted as provided in Section 11. The Shares shall be issued from authorized and unissued Common Stock or Common Stock held in or hereafter acquired for the treasury of the Company. If an Option terminates or expires without having been fully exercised for any reason, or if any Award is canceled or forfeited for any reason, the Shares for which the Option was not exercised or that were canceled or forfeited pursuant to the Award may again be the subject of an Option or Award granted pursuant to the Plan. The maximum number of Shares that may be granted shall be increased by shares of Stock available for grant pursuant to the Prior Plan or that become available for grant pursuant to the Prior Plan. | ||
B. | Shares covered by an Award shall be counted as used as of the Grant Date. Any Shares that are subject to Awards or Options shall be counted against the limit set forth in Section 6 (A) one (1) Share for every one (1) Share subject to an Award or Option. With respect to SARs, the number of Shares subject to an award of SARs or Phantom Stock will be counted against the aggregate number of Shares available for issuance under the Plan regardless of the number of Shares actually issued to settle the SAR upon exercise. If any Shares covered by an Award or Option granted under the Plan or a Prior Plan are not purchased or are forfeited or expire, or if an Award or Option otherwise terminates without delivery of any Common Stock subject thereto or is settled in cash in lieu of shares, then the number of Shares counted against the aggregate number of Shares available under the Plan with respect to such Award or Option shall, to the extent of any such forfeiture, termination or expiration, again be available for granting Awards or Options under the Plan in the same amount as such Shares were counted against the limit set forth in this section. |
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(a) | Expiration of the Option term specified in the Option Document, which shall not exceed (i) ten years from the date of grant, or (ii) five years from the date of grant of an ISO if the Optionee on the date of grant owns, directly or by attribution under Section 424(d) of the Code, shares of capital stock of the Company possessing more than ten percent (10%) of the total combined voting power of all classes of capital stock of the Company or of an Affiliate; | ||
(b) | Expiration of ninety (90) days from the date the Optionee’s employment or service with the Company or its Affiliate terminates for any reason other than Disability or death or as otherwise specified in Section 8.E.1(d) or Section 10 below; |
(c) | Expiration of one year from the date the Optionee’s employment or service with the Company or its Affiliate terminates due to the Optionee’s Disability or death; |
(d) | A finding by the Committee, after full consideration of the facts presented on behalf of both the Company and the Optionee, that the Optionee has (i) committed a material and serious breach or neglect of Optionee’s responsibilities to the Company; (ii) breached his or her employment or service contract with the Company or an |
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Company of the Option Price of such Shares. Notwithstanding anything herein to the contrary, the Company may withhold delivery of share certificates pending the resolution of any inquiry that could lead to a finding resulting in a forfeiture; or | |||
(e) | The date, if any, set by the Board of Directors as an accelerated expiration date pursuant to Section 10 hereof. |
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2. | Notwithstanding the foregoing, the Committee may extend the period during which an Option may be exercised to a date no later than the date of the expiration of the Option term specified in the Option Documents, as they may be amended, provided that any change pursuant to this Section 8.E.2 that would cause an ISO to become a | ||
3. | During the period in which an Option may be exercised after the termination of the Optionee’s employment or service with the Company or any Affiliate, such Option shall only be exercisable to the extent it was exercisable immediately prior to such Optionee’s termination of service or employment, except to the extent specifically provided to the contrary in the applicable Option Document. |
F. | Transfers. No Option may be transferred except by will or by the laws of descent and distribution. During the lifetime of the person to whom an Option is granted, such Option may be exercised only by him or her. Notwithstanding the foregoing, a Non-Qualified Stock Option may be transferred pursuant to the terms of a “qualified domestic relations order” within the meaning of Sections 401(a)(13) and 414(p) of the Code or within the meaning of Title I of the Employee Retirement Income Security Act of 1974, as amended. G.Holding Period. No Option may be exercised unless six months, or such greater period of time as may be specified in the Option Documents, have elapsed from the date of grant. H.Limitation on ISO Grants. In no event shall the aggregate Fair Market Value of the Shares (determined at the time the ISO is granted) with respect to which an ISO is exercisable for the first time by the Optionee during any calendar year (under all incentive stock option plans of the Company or its Affiliates) exceed $100,000. I.Other Provisions. The Option Documents shall contain such other provisions including, without limitation, provisions authorizing the Committee to accelerate the exercisability of all or any portion of an Option, additional restrictions upon the exercise of the Option or additional limitations upon the term of the Option, as the Committee shall deem advisable. J.Amendment. The Committee shall have the right to amend Option Documents issued to an Optionee, subject to the Optionee’s consent if such amendment is not favorable to the Optionee, except that the consent of the Optionee shall not be required for any amendment made under Section 10. K.No Repricing. Notwithstanding anything in this Plan to the contrary, no amendment or modification may be made to an outstanding Option or SAR, including, without limitation, by reducing the exercise price of an Option or replacing an Option or SAR with cash or another award type, that would be treated as a repricing under the rules of the stock exchange on which the Stock is listed, in each case, without the approval of the stockholders of the Company, provided, that, appropriate adjustments may be made to outstanding Options and SARs pursuant to Section 11 and may be made to make changes to achieve compliance with applicable law, including Internal Revenue Code Section 409A. 7 9.Award Documents and Terms. Awards shall be evidenced by an Award Document in such form as the Committee shall from time to time approve, which Award Document shall comply with and be subject to the following terms and conditions and such other terms and conditions as the Committee shall from time to time require that are not inconsistent with the terms of the Plan. A Grantee shall not have any rights with respect to an Award until and unless such Grantee shall have executed an Award Document containing the terms and conditions determined by the Committee. A.Stock Appreciation Rights.
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B.Restricted Stock and Restricted Stock Units.
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C.Phantom Stock.
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D.Dividend Equivalent Rights. A Dividend Equivalent Right is an Award entitling the Grantee to receive credits based on cash distributions that would have been paid on the shares of Common Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the Grantee. A Dividend Equivalent Right may be granted hereunder to any Grantee. The terms and conditions of Dividend Equivalent Rights shall be specified in the Award Document. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional shares of Common Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment. Dividend Equivalent Rights may be settled in cash or Common Stock or a combination thereof, in a single installment or installments, all determined in the sole discretion of the Committee. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be 12 settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other Award. A Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from such other Award. Except as may otherwise be provided by the Committee in the Award Document, a Grantee’s rights in all Dividend Equivalent Rights shall automatically terminate upon the Grantee’s termination of Service for any reason. 10.Change of Control. In the event of a Change of Control, the Committee may take whatever action with respect to Options and Awards outstanding as it deems necessary or desirable, including, without limitation, accelerating the expiration or termination date or the date of exercisability in any Option Documents, or removing any restrictions from or imposing any additional restrictions on any outstanding Awards. A “Change of Control” shall be deemed to occur if: (i) any person who is not an affiliate of the Company on the date hereof becomes a beneficial owner of a majority of the outstanding voting power of the Company’s capital stock; (ii) the shareholders of the Company approve and there is consummated any plan of liquidation providing for the distribution of all or substantially all of the Company’s assets; (iii) there is consummated a merger, consolidation or other form of business combination involving the Company, or, in one transaction or a series of related transactions, a sale of all or substantially all of the assets of the Company, unless, in any such case: (A) the business of the Company is continued following such transaction by a resulting entity (which may be, but need not be, the Company) (the “Surviving Company”); and (B) persons who were the beneficial owners of a majority of the outstanding voting power of the Company immediately prior to the completion of such transaction beneficially own, by reason of such prior beneficial ownership, a majority of the outstanding voting power of the Surviving Company (or a majority of the outstanding voting power of the direct or indirect parent of the Surviving Company, as the case may be) immediately following the completion of such transaction; or (iv) any person beneficially owns shares of the Company’s capital stock possessing a greater voting power than held in the aggregate by M. Thomas Grumbacher, any member of his family, any trust for the primary benefit of M. Thomas Grumbacher or any member of his family, and any charitable foundation of which M. Thomas Grumbacher is a founder or co-founder with his wife (collectively, the “Grumbacher Affiliates”), or if the Grumbacher Affiliates control less than twenty percent (20%) of the outstanding voting power of the Company’s capital stock. For purposes of this definition, the terms “person,” “beneficial owner,” “beneficial ownership,” “affiliate,” and “control” shall have the meanings ascribed to such terms under Sections 13(d) and 3(a)(9) and Rule 13d-3 under the Exchange Act and Rule 501 under the Securities Act of 1933 as amended, as applicable. 11.Adjustments on Changes in Capitalization. The aggregate number of Shares and class of Shares as to which Options and Awards may be granted hereunder, the limitation as to grants to individuals set forth in Section 8.A hereof, the number of Shares covered by each outstanding Option or Award, and the Option Price for each related outstanding Option, shall be appropriately adjusted in the event of a stock dividend, stock split, recapitalization or other change in the number or class of issued and outstanding equity securities of the Company resulting from a subdivision or consolidation of the Common Stock and/or, if appropriate, other outstanding equity securities or a recapitalization or other capital adjustment (not including the issuance of Common Stock on the conversion of other securities of the Company that are 13 convertible into Common Stock) affecting the Common Stock which is effected without receipt of consideration by the Company. The Committee shall have authority to determine the adjustments to be made under this Section 11, and any such determination by the Committee shall be final, binding and conclusive; provided, however, that no adjustment shall be made that will cause an ISO to lose its status as such without the consent of the Optionee, except for adjustments made pursuant to Section 10 hereof. 12.Amendment of the Plan. The Board of Directors of the Company may amend the Plan from time to time in such manner as it may deem advisable. Nevertheless, the Board of Directors of the Company may not: (i) change the class of individuals eligible to receive an ISO, (ii) increase the maximum number of Shares as to which Options or Awards may be granted, or (iii) make any other change or amendment as to which shareholder approval is required in order to satisfy the conditions set forth in Rule 16b-3 promulgated under the Exchange Act, in each case without obtaining approval, within twelve months before or after such action, by (A) vote of a majority of the votes cast at a duly called meeting of the shareholders at which a quorum representing a majority of all outstanding voting stock of the Company is, either in person or by proxy, present and voting on the matter, or (B) a method and in a degree that would be treated as adequate under applicable state law for actions requiring shareholder approval, including, without limitation, by written consent of shareholders constituting a majority of the voting power of all shares of outstanding voting stock of the Company entitled to vote. No amendment to the Plan shall adversely affect any outstanding Option or Award, however, without the consent of the Optionee or Grantee. 13. No Commitment to Retain. The grant of an Option or Award shall not be construed to imply or to constitute evidence of any agreement, express or implied, on the part of the Company or any Affiliate to retain the Optionee or Grantee in the employ of the Company or an Affiliate and/or as a member of the Company’s Board of Directors or in any other capacity. 14.Withholding of Taxes. Whenever the Company proposes or is required to deliver or transfer Shares in connection with an Award or the exercise of an Option, the Company shall have the right to (a) require the recipient to remit or otherwise make available to the Company an amount sufficient to satisfy any federal, state and/or local withholding tax requirements prior to the delivery or transfer of any certificate or certificates for such Shares or (b) take whatever other action it deems necessary to protect its interests with respect to tax liabilities. The Company’s obligation to make any delivery or transfer of Shares shall be conditioned on the Optionee’s or Grantee’s compliance, to the Company’s satisfaction, with any withholding requirement. 15.Interpretation. The Plan is intended to enable transactions under the Plan with respect to directors and officers (within the meaning of Section 16(a) under the Exchange Act) to satisfy the conditions of Rule 16b-3 promulgated under the Exchange Act; any provision of the Plan that would cause a conflict with such conditions shall be deemed null and void to the extent permitted by applicable law and in the discretion of the Board of Directors. 16.Special Rules for Performance-Based Awards.
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