o | Preliminary Proxy Statement | |
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þ | Definitive Proxy Statement | |
o | Definitive Additional Materials | |
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Our Vision To deliver the premium value in the coal industry. |
Our Mission Westmoreland Coal Company is dedicated to diligently applying our mining expertise to attain economic advantages. • Leverage unique operations • Maximize transportation advantages • Identify and develop niche reserves • Cultivate unique partnerships • Sustain efficiency and standardization | |||
Our Values Our decisions and practices are guided by the values below. They are the core to who we are and how we behave as a company. To excel at the pillars of coal mining by: • Uncompromised safety • Environmental stewardship • State-of-the-art mining techniques To exceed partner expectations by: • Fair and collaborative approach • Community and tribal partnerships • Delivery of shareholder value • Agile and responsive interactions • Commitment focused - we do what we say To maintain a foundation of integrity by: • Honest, transparent, and respectful communication • Highest legal and ethical standards • Pride in our work and our company • Dedication to diversity - respect and honor all | |||
1. | The election of |
2. | Advisory approval of Westmoreland Coal Company's executive compensation; |
3. | The ratification of the appointment |
4. | To transact such other business as may properly come before the meeting or any postponement or adjournment thereof. |
By Order of the Board of Directors, | ||||
By Order of the Board of Directors, Jennifer S. Grafton General Counsel and Secretary |
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE STOCKHOLDER MEETING TO BE HELD ON MAY 21, 2013. This notice, the accompanying proxy statement and Westmoreland Coal Company's annual report to stockholders for the fiscal year ended December 31, 2012 are available at www.proxyvote.com. |
ü | No employment agreements or individual change-in-control agreements for executive officers, other than Mr. Alessi's Transition Agreement described below; all executive officers are at-will employees; |
ü | No gross-ups; |
ü | No company aircraft or company-provided vehicles, other than vehicles used at mine operation sites; |
ü | No SERPS, defined benefit plans or other executive-only retirement plans; |
ü | Our long-term incentive awards included performance-vested restricted stock units whose value is based on achievement of three-year free cash flow targets; and |
ü | We require our executive officers to have significant ownership of company stock. |
BOARD AND OTHER GOVERNANCE INFORMATION | 2013* |
Size of Board | 8 |
Number of Independent Directors | 6 |
Diverse Board (as to Gender, Experience and Skills) | Yes |
Annual Election of All Directors | Yes |
Majority Voting for Directors - Bylaw amendment approved by Board in January 2013 | Yes |
Separate Chairman & CEO | Yes |
Lead Independent Director - Effective as of April 8, 2013 | Yes |
Independent Directors Meet Without Management Present | Yes |
Annual Board Self-Evaluation Conducted by Independent Third-Party | Yes |
Annual Equity Grant to Non-Employee Directors | Yes |
Board Orientation Program | Yes |
Code of Business Conduct and Ethics for Directors | Yes |
Corporate Governance Guidelines for Directors | Yes |
Annual Advisory Approval of Executive Compensation | Yes |
Policy Prohibiting Use of Corporate Funds for Political Expenditures | Yes |
AGE | DIRECTOR SINCE | OCCUPATION AS OF 3/25/13 | INDEPENDENT | |||||
Keith E. Alessi | 58 | 2007 | CEO, Westmoreland Coal Company | |||||
Gail E. Hamilton | 63 | 2011 | Retired IT Executive | X | ||||
Michael G. Hutchinson | 57 | 2012 | Retired Audit Partner, Deloitte & Touche | X | ||||
Robert P. King | 60 | 2012 | President and COO, Westmoreland Coal Company | |||||
Richard M. Klingaman | 77 | 2006 | Retired Energy Industry Consultant | X | ||||
Craig R. Mackus | 61 | — | Retired Equipment Manufacturer CFO | X | ||||
Jan B. Packwood | 69 | 2011 | Retired Public Utility CEO | X | ||||
Robert C. Scharp | 66 | 2011 | Retired Coal Industry Executive | X |
Page | ||||
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Director/ Executive | ||||||||
Name | Age | Officer Since | Position | |||||
Keith E. Alessi | 56 | 2007 | Director; President and Chief Executive Officer | |||||
Thomas J. Coffey | 58 | 2000 | Director —Independent | |||||
Michael R. D’Appolonia | 62 | 2008 | Director— Independent | |||||
Gail E. Hamilton | 61 | 2011 | Director —Independent | |||||
Richard M. Klingaman | 75 | 2006 | Director— Independent | |||||
Jan B. Packwood | 67 | 2011 | Director— Independent | |||||
Robert C. Scharp | 64 | 2011 | Director— Independent | |||||
Kevin A. Paprzycki | 40 | 2008 | Chief Financial Officer and Treasurer | |||||
Douglas P. Kathol | 58 | 2010 | Executive Vice President | |||||
Jennifer S. Grafton | 35 | 2011 | General Counsel — Compliance and Corporate Governance and Secretary | |||||
Morris W. Kegley | 63 | 2007 | General Counsel — Mining Operations |
Name | Age | Director/ Executive Officer Since | Position |
Keith E. Alessi | 58 | 2007 | Director and Executive Chairman beginning April 8, 2013; Chief Executive Officer through April 5, 2013 |
Gail E. Hamilton | 63 | 2011 | Director - Independent |
Michael G. Hutchinson | 57 | 2012 | Director - Independent |
Robert P. King | 60 | 2012 | Director; President and Chief Operating Officer; Chief Executive Officer beginning April 5, 2013 |
Richard M. Klingaman | 77 | 2006 | Director - Independent; Chairman of the Board |
Jan B. Packwood | 69 | 2011 | Director - Independent |
Robert C. Scharp | 66 | 2011 | Director - Independent |
Jennifer S. Grafton | 37 | 2011 | General Counsel and Secretary |
Douglas P. Kathol | 60 | 2010 | Executive Vice President |
Joseph E. Micheletti | 47 | 2011 | Senior Vice President - Coal Operations |
Kevin A. Paprzycki | 42 | 2008 | Chief Financial Officer and Treasurer |
Director Nominee | |||
Name | Age | Director/ Executive Officer Since | Position |
Craig R. Mackus | 61 | — | Director nominee |
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Nominating | ||||||||
Compensation | and | |||||||
Name of Director | Audit | and Benefits | Corporate Governance | Executive | ||||
Non-Employee Directors: | ||||||||
Thomas J. Coffey | Chair | Member | ||||||
Michael R. D’Appolonia | Chair | Member | Member | |||||
Gail E. Hamilton | Member | Member | ||||||
Richard M. Klingaman | Member | |||||||
Jan B. Packwood | Member | Chair | ||||||
Robert C. Scharp | Member | Member | ||||||
Employee Director: | ||||||||
Keith E. Alessi | Chair | |||||||
Number of Meetings in 2010 | 4 | 6 | 4 | 1 |
Name of Director | Audit | Compensation and Benefits | Nominating and Corporate Governance | Executive | ||||
Non-Employee Directors: | ||||||||
Michael R. D'Appolonia | Chair | Member | Member | |||||
Gail E. Hamilton | Member | Member | ||||||
Michael G. Hutchinson | Member | Member | ||||||
Richard M. Klingaman | Member | |||||||
Jan B. Packwood | Member | Chair | Member | |||||
Robert C. Scharp | Chair | Member | ||||||
Employee Director: | ||||||||
Keith E. Alessi | Chair | |||||||
Robert P. King | ||||||||
Number of Meetings in 2012 | 8 | 6 | 3 | 1 |
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Type of Compensation | Amount | |||
Annual Cash Retainer | $35,000 | |||
Annual Stock | common stock | |||
Annual Retainer for Executive Chairman | $ | |||
Annual Retainer for Lead Independent Director | $9,000 | |||
Annual Retainer for Committee | Chair: | |||
Audit Committee | $7,000 | |||
Compensation and Benefits Committee | $ | 7,000 | ||
Nominating and Corporate Governance Committee | $3,000 | |||
Annual Retainer for Serving on the Audit, C&B or N&CG Committees | $5,000 per committee | |||
Attendance at Board or Committee Meeting (in-person) | $1,500 per meeting | |||
Attendance at Board or Committee Meeting (telephonic) | $1,000 per meeting |
Fees Earned Or | Stock | Total Compensation | ||||||||||
Name(1) | Paid In Cash($) | Awards($)(2) | ($) | |||||||||
Thomas J. Coffey | 70,500 | 29,996 | 100,496 | |||||||||
Michael R. D’Appolonia | 60,600 | 29,996 | 90,596 | |||||||||
Richard M. Klingaman | 103,500 | 29,996 | 133,496 | |||||||||
William M. Stern | 56,500 | 29,996 | 86,496 | |||||||||
Frank T. Vicino, Jr. | 33,462 | 29,996 | 63,458 |
Name(1) | Fees Earned Or Paid In Cash($) | Grant Date Fair Value of Stock Awards($)(2) | Total Compensation ($) |
Michael R. D'Appolonia | 75,970 | 70,005 | 145,975 |
Gail E. Hamilton | 67,050 | 70,005 | 137,055 |
Michael G. Hutchinson | 28,204 | 56,576 | 84,780 |
Richard M. Klingaman | 79,500 | 70,005 | 149,505 |
Jan B. Packwood | 67,750 | 70,005 | 137,755 |
Robert C. Scharp | 66,800 | 70,005 | 136,805 |
Former Directors | |||
Thomas J. Coffey | 26,286 | — | 26,286 |
(1) | Mr. Alessi, who is our Chief Executive Officer and | |
(2) |
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Option Awards | ||||||||||||||||
Option | ||||||||||||||||
Securities Underlying | Securities Underlying | Exercise | Option | |||||||||||||
Unexercised Options (#) | Unexercised Options (#) | Price | Expiration | |||||||||||||
Name | Exercisable | Unexercisable | ($) | Date | ||||||||||||
Thomas J. Coffey | 10,000 | 0 | 18.01 | 5/31/11 | ||||||||||||
5,000 | 0 | 15.31 | 5/24/12 | |||||||||||||
1,762 | 0 | 25.14 | 6/23/16 | |||||||||||||
Richard M. Klingaman | 3,733 | 0 | 23.99 | 2/27/16 | ||||||||||||
William M. Stern | 5,000 | 0 | 18.01 | 5/31/11 | ||||||||||||
5,000 | 0 | 15.31 | 5/24/12 | |||||||||||||
1,762 | 0 | 25.14 | 6/23/16 |
Common | % of | Depositary | % of | |||||||||||||
Name of Beneficial Owner | Stock | Common | Shares | Depositary | ||||||||||||
5% or Greater Equity Holders | ||||||||||||||||
Jeffrey L. Gendell (1) | 3,288,025 | 25.10 | % | 3,700 | * | |||||||||||
Frank Vicino Jr. (2) | 188,612 | 1.42 | % | 108,730 | 16.98 | % | ||||||||||
Stephen D. Rosenbaum (3) | 131,404 | 1.00 | % | 60,000 | 9.37 | % | ||||||||||
T. Rowe Price (4) | 757,320 | 5.79 | % | — | — | |||||||||||
Officers and Directors | ||||||||||||||||
Thomas J. Coffey (5) | 51,696 | * | — | — | ||||||||||||
Michael R. D’Appolonia (6) | 9,448 | * | — | — | ||||||||||||
Gail E. Hamilton | — | — | — | — | ||||||||||||
Richard M. Klingaman (7) | 10,343 | * | — | — | ||||||||||||
Jan B. Packwood | — | — | — | — | ||||||||||||
Robert C. Scharp | — | — | — | — | ||||||||||||
Keith E. Alessi (8) | 81,789 | * | — | — | ||||||||||||
Kevin A. Paprzycki (9) | 8,593 | * | — | — | ||||||||||||
Douglas P. Kathol (10) | 40,867 | * | — | — | ||||||||||||
John V. O’Laughlin (11) | 53,377 | * | — | — | ||||||||||||
Morris W. Kegley (12) | 9,297 | * | — | — | ||||||||||||
Directors and Executive Officers as a Group (11 persons) | 213,511 | 1.62 | % | — | — |
Name of Beneficial Owner | Common Stock | % of Common | Depositary Shares | % of Depositary Shares |
5% or Greater Equity Holders | ||||
Jeffrey L. Gendell(1) | 2,683,468 | 18.78% | 3,700 | * |
Frank Vicino, Jr.(2) | 181,612 | 1.26% | 106,330 | 16.6% |
Stephen D. Rosenbaum(3) | 131,404 | * | 60,000 | 9.4% |
T. Rowe Price(4) | 772,800 | 5.41% | — | — |
Officers and Directors | ||||
Michael R. D'Appolonia | 12,388 | * | — | — |
Gail E. Hamilton | 2,940 | * | — | — |
Michael G. Hutchinson | — | |||
Richard M. Klingaman | 13,283 | * | — | — |
Jan B. Packwood | 2,940 | * | — | — |
Robert C. Scharp | 2,940 | * | — | — |
Keith E. Alessi(5) | 206,664 | 1.43% | — | — |
Kevin A. Paprzycki(6) | 27,275 | * | — | — |
Douglas P. Kathol(7) | 63,220 | * | ||
Robert P. King(8) | 36,005 | * | ||
Joseph E. Micheletti(9) | 14,958 | * | — | — |
Directors and Executive Officers as a Group (11 persons) | 392,280 | 2.71% | — | — |
* | Percentages of less than 1% are indicated by an | ||
asterisk | |||
(1) | The total for Mr. Gendell includes shares of common stock, as well as shares of common stock issuable upon conversion of depositary shares. According to a Schedule 13D/A filed | ||
(2) | According to a Schedule 13D/A filed on February 19, 2010 and a Form 4 filed on December 28, 2012, Mr. Frank Vicino Jr. beneficially owns |
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3312 NE 40th Street, Fort Lauderdale, Fl 33308. | ||
(3) | The total for Mr. Rosenbaum includes shares of common stock, as well as shares of common stock issuable upon conversion of depositary shares. The depositary shares are convertible into | |
(4) | According to a Schedule 13G/A filed on February | |
(5) | Includes |
(6) | Includes | |
(7) | Includes | |
(8) | Includes | |
(9) | Includes 2,387 shares of common stock held by Prudential Retirement, as trustee of the Westmoreland's 401(k) plan, 5,000 shares of common stock that may be purchased upon exercise of options under | |
Number of Securities | ||||||||||||
Remaining Available for Future | ||||||||||||
Number of Securities to | Weighted Average | Issuance Under Equity | ||||||||||
be Issued Upon Exercise | Exercise Price | Compensation Plans (Excluding | ||||||||||
of Outstanding Options | of Outstanding Options | Securities Reflected in Column (a)) | ||||||||||
Plan Category | (a) | (b) | (c) | |||||||||
Equity plans approved by security holders | 243,590 | (1) | $ | 19.96 | 288,261 | (3) | ||||||
Equity plans not approved by security holders | 75,000 | (2) | $ | 15.85 | 0 | |||||||
Total | 318,590 | $ | 18.99 | 288,261 |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options (a) | Weighted Average Exercise Price of Outstanding Options (b) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) |
Equity plans approved by security holders | 193,123(1) | $21.18 | 164,683(3) |
Equity plans not approved by security holders | 0(2) | $— | — |
Total | 193,123 | $21.18 | 164,683 |
(1) | Excludes SARs to acquire | |
(2) | Excludes SARs to acquire 16,067 shares of common stock with exercise prices above | |
(3) | Number of securities remaining available for future issuance reflects the reservation of |
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Element of Executive Officer Compensation | Description | Purpose | ||
Base Salary | Ongoing cash compensation based on the executive officer's role. Salary levels are evaluated annually and are based on each executive's role and responsibility, applicable experience, unique skills, past performance, and future potential with us. Individual increases to base salary are not guaranteed for our named executive officers and are provided only at the committee's discretion after a review of an individual's performance and relevant market data. | • Provide a degree of financial certainty and stability. • Retention and attraction of executive talent. • Recognize competitive market conditions and reward individual performance through periodic increases. | ||
Annual Incentive Award | The annual incentive plan is intended to provide compensation for performance based on the achievement of strategic goals and objectives. The incentive pay is based on financial performance and personal performance, while executives with direct mining operational responsibility also have a safety component. If the thresholds for the financial and safety components are not met, then no payout is made for that particular component. | • Motivate executive officers to achieve key annual goals and position the Company for long-term success. • Reward executive officers for individual performance and overall Company performance during the year. | ||
Long-Term Awards | Long-term incentive awards are designed to align the interests of our executives with those of our stockholders. Awards typically are granted annually under the Company's equity incentive plan. The performance-based awards vest upon the achievement of a preset three-year cumulative free cash flow measure. The number of shares issued is based on a percentage of the executive's base salary divided by the stock price on the date of grant. | • Provide an incentive for executive officers to achieve long-term, sustainable success for the Company and to create stockholder value. • Attract, motivate, reward and retain executive talent. | ||
Post-Employment Benefits | We have a severance policy that provides, under certain circumstances, executives with 12 months of base pay, in addition to 9 months of outplacement assistance and 12 months of health benefits at the same cost share as active employees. Payment is triggered upon: involuntary termination that is not for cause; the sale of a facility or division; or a position being relocated by at least fifty miles. Otherwise, we do not guarantee or provide any other compensation or benefits to our executives upon their departure. | • Provide a degree of financial certainty and stability. • Retention and attraction of executive talent. • Recognize competitive market conditions |
Executive Level | Multiple of Base Salary | ||||
CEO | 3.0x | ||||
COO | |||||
CFO, EVP and SVP | |||||
Other |
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Name | FY 2009 Net Income in Millions ($) | FY 2009 Revenues in Millions ($) | ||||||
Atwood Oceanics | 256 | 650 | ||||||
Calgon Carbon Corp. | 39 | 412 | ||||||
Drew Industries Inc. | -24 | 398 | ||||||
Dril-Quip Inc. | 105 | 540 | ||||||
Forward Air Corp. | 10 | 417 | ||||||
Genessee & Wyoming Inc. | 60 | 545 | ||||||
Gulf Island Fabrication Inc. | 21 | 311 | ||||||
Hecla Mining Co. | 68 | 312 | ||||||
Heico Corp. | 45 | 538 | ||||||
Hornbeck Offshore Services Inc. | 50 | 386 | ||||||
Horsehead Holding Corp. | -27 | 216 | ||||||
James River Coal Co. | 51 | 681 | ||||||
Pioneer Drilling Co. | -23 | 325 | ||||||
Stillwater Mining Co. | -9 | 394 | ||||||
Superior Well Services Inc. | -80 | 399 | ||||||
Union Drilling Inc. | -12 | 169 | ||||||
Unit Corp. | -55 | 703 | ||||||
Westmoreland Coal Company | -29 | 443 |
Access Midstream Partners | Atwood Oceanics | Cal Dive International | Dril-Quip |
HEICO | Oxford Resources Partners | Parker Drilling Co. | Pioneer Energy Services |
Bill Barrett Corp. | BioFuel Energy | Forest Oil | Hecla Mining |
Intrepid Potash | Molycorp | Penford Corporation | Stillwater Mining |
Genesee & Wyoming | Rhino Resource Partners | Innospec | Thompson Creek Metals |
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Responsible Party | Roles and Responsibilities | |
Compensation and Benefits Committee of the Board of Directors The committee is currently comprised of four Independent Directors and reports to the Board. | • Retains independent counsel, consultants and other advisers to assist it in evaluating compensation or in otherwise discharging its responsibilities. • Works with the CEO to set performance goals at the beginning of each year targeted to positively influence stockholder value and evaluates CEO performance in relation to those goals and overall performance of the Company. • Authority to determine and approve compensation for our executive officers. • Reviews and approves overall compensation strategy and all programs in which our executive officers participate, including equity, bonus (including all performance-based goals), retirement and other benefit plans. • Reviews compensation philosophy, metrics and amounts, and the results of stockholder say-on-pay votes, before establishing executive compensation. • Considers comparable metrics in the Company's peer group. | |
Consultant to the Compensation Committee Pay Governance, as an independent consultant retained directly by the committee, provides consulting advice on matters of governance and executive compensation | • Provides advice and opinion on the appropriateness and competitiveness of our compensation programs relative to market practice. • Performs all functions at the direction of the committee. • Attends Compensation and Benefit Committee meetings. • Provides advice regarding compensation decision-making governance. • Provides market data, as requested. • Consults on various compensation matters and recommends compensation program designs and practices. • With the cooperation of management, works to conduct an assessment of the risks arising from our compensation programs. • Confers with CEO and VP of HR on compensation levels, incentives and goals. | |
Chief Executive Officer With the support of other members of the management team | • Works with the other executive officers to set personal performance goals at the beginning of each year targeted to positively influence stockholder value. • Reviews performance of the other executive officers against the set goals and makes recommendations to the committee with respect to their compensation. • Confers with the committee concerning design and development of compensation and benefit plans for Company employees. • Recommends appropriate company-wide and mine and power financial and non-financial performance goals for the annual incentive program. |
2012 Base Salaries for Named Executive Officers | ||||
Name | Position | Base Salary | ||
Keith E. Alessi | Chief Executive Officer | $ | ||
Robert P. King | President and COO | $425,000 | ||
Douglas P. Kathol | Executive Vice President | $ | ||
Kevin A. Paprzycki | Chief Financial Officer and Treasurer | $ | ||
Senior Vice President | $ | |||
GOAL | COMPONENTS | PERCENT OF TOTAL | ||||
Financial | Goal: Annual budgeted • 50% payout upon meeting 80% of goal (threshold) • 100% payout upon meeting 100% of goal (target) • 200% payout upon meeting 120% of goal (maximum) | • | 40% for • 60% for other executives | |||
Safety | Goal: Annual National Mine Safety and Health Administration (MSHA) average for reportable incident rate for surface mines in the coal industry • 50% payout upon meeting 100% of goal (threshold) • 100% payout upon meeting 125% of goal (target) • 200% payout upon meeting 150% of goal (maximum) | • | Mr. Micheletti • Not applicable for | |||
Individual | The percentage payout is evaluated on achievement of certain individual goals established between the executive and the CEO (or, in the case of the CEO, between him and the Board) and will be based on the | • |
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Percentage of Target | Percentage of | Percentage of | ||||||||||||||||||||||||||||
Target vs. Actual Annual Incentive Bonuses Paid for 2012 Performance for Named Executive Officers | Target vs. Actual Annual Incentive Bonuses Paid for 2012 Performance for Named Executive Officers | |||||||||||||||||||||||||||||
Percentage of Total | Target Total Cash | Individual Bonus | Target Financial | Target Safety | ||||||||||||||||||||||||||
Name | Compensation | Incentive Bonus | Approved | Bonus Approved3 | Bonus Approved4 | Total Cash Bonus | Percentage of Annual Base Salary in 2012 | Target Total Cash Incentive Bonus(1) | Percentage of Target Individual Bonus Approved | Percentage of Target Financial Bonus Approved(2) | Percentage of Target Safety Bonus Approved(3) | Total Cash Bonus | ||||||||||||||||||
Keith E. Alessi | 70%/100 | %1 | $ | 404,614 | 235 | % | 135 | % | NA | $ | 882,240 | 100% | $700,000 | 200% | 138% | — | $1,141,423 | |||||||||||||
Douglas Kathol | 40%/50 | %2 | $ | 113,106 | 100 | % | 135 | % | NA | $ | 134,805 | |||||||||||||||||||
Robert P. King | 100% | $318,750 | 100% | 138% | — | $392,302 | ||||||||||||||||||||||||
Douglas P. Kathol | 40% | $115,005 | 100% | 138% | — | $141,543 | ||||||||||||||||||||||||
Kevin A. Paprzycki | 40 | % | $ | 85,568 | 100 | % | 135 | % | NA | $ | 101,994 | 35% | $91,000 | 100% | 138% | — | $111,998 | |||||||||||||
Morris W. Kegley | 40 | % | $ | 78,700 | 100 | % | 135 | % | NA | $ | 93,799 | |||||||||||||||||||
John V. O’Laughlin | 50 | % | $ | 112,119 | 0 | % | 63 | % | 114 | % | $ | 66,465 | ||||||||||||||||||
Joseph E. Micheletti | 35% | $80,711 | 100% | 138% | 128% | $103,656 |
(1) | |||
(2) | In | ||
(3) | In |
Name | Long-Term Incentive Tier | Number of RSUs | Grant Date Fair Value of RSUs | |||||||||
Keith E. Alessi | 125 | % | 59,775 | $ | 484,775 | |||||||
Douglas P. Kathol | 45 | % | 14,796 | $ | 119,996 | |||||||
Kevin A. Paprzycki | 34 | % | 8,916 | $ | 72,309 | |||||||
John V. O’Laughlin | 31 | % | 9,852 | $ | 79,900 | |||||||
Morris W. Kegley | 22 | % | 6,570 | $ | 53,283 |
Long-Term Incentive Awards for Named Executive Officers for 2012 | ||||
Name | Percentage of Base Salary | Number of Time-Based RSUs | Number of Performance-Based RSUs | Grant Date Fair Value of RSUs |
Keith E. Alessi | 150% | 71,919 | 71,918 | $1,050,010 |
Robert P. King | 100% | 29,112 | 29,110 | $425,021 |
Douglas P. Kathol | 80% | 15,756 | 15,754 | $230,023 |
Kevin A. Paprzycki | 70% | 12,468 | 12,466 | $182,018 |
Joseph E. Micheletti | 70% | 11,058 | 11,056 | $161,432 |
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Targeted | Targeted Total | |||||||||||||||||
Name | Position | Base Salary | Targeted AIP | LTIP | Compensation | |||||||||||||
Keith E. Alessi | CEO and President | $ | 600,000 | 100 | % | 150 | % | $ | 2,100,000 | |||||||||
Douglas P. Kathol | Executive Vice President | $ | 280,500 | 40 | % | 80 | % | $ | 617,100 | |||||||||
Kevin A. Paprzycki | Chief Financial Officer and Treasurer | $ | 245,000 | 35 | % | 70 | % | $ | 502,300 | |||||||||
Vacant | Senior Vice President | TBD | 35 | % | 70 | % | $ | TBD | ||||||||||
Morris W. Kegley | General Counsel | $ | 224,300 | 30 | % | 60 | % | $ | 426,200 |
Total Cash Received | # of RSUs / Grant Date Fair | |||||||||||
for 2010 | 2010 Base Salary | Bonus for 2010 | Value of 2010 RSUs | |||||||||
$974,544 | $600,000/$400,0001 | $ | 882,240 | 2 | 59,775 RSUs/ $484,775 |
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Total Salary and Bonus Cash Received for 2012 | 2012 Base Salary | Bonus for 2012 | # of RSUs / Grant Date Fair Value of 2012 RSUs |
$1,814,500 | $700,000 | $1,141,423 | 143,837 RSUs/ $1,050,050 |
Total Cash Received | # of RSUs / Grant Date Fair | |||||||||||
for 2010 | 2010 Base Salary | Bonus for 2010 | Value of 2010 RSUs | |||||||||
$383,197 | $212,672/$275,0001 | $ | 134,805 | 14,796 RSUs/ $119,995 |
Total Salary and Bonus Cash Received for 2012 | 2012 Base Salary | Bonus for 2012 | # of RSUs / Grant Date Fair Value of 2012 RSUs |
$761,052 | $425,000 | $392,302 | 58,222 RSUs/ $425,021 |
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Total Cash Received | # of RSUs / Grant Date Fair | |||||||||||
for 2010 | 2010 Base Salary | Bonus for 2010 | Value of 2010 RSUs | |||||||||
$315,892 | $212,175/$217,1751 | $ | 101,944 | 8,916 RSUs/ $72,309 |
Total Salary and Bonus Cash Received for 2012 | 2012 Base Salary | Bonus for 2012 | # of RSUs / Grant Date Fair Value of 2012 RSUs |
$427,168 | $287,513 | $141,543 | 31,510 RSUs/ $230,023 |
Total Salary and Bonus Cash Received for 2012 | 2012 Base Salary | Bonus for 2012 | # of RSUs / Grant Date Fair Value of 2012 RSUs |
$367,960 | $260,000 | $111,998 | 24,934 RSUs/ $182,018 |
Total Cash Received | # of RSUs / Grant Date Fair | |||||||||||
for 2010 | 2010 Base Salary | Bonus for 2010 | Value of 2010 RSUs | |||||||||
$290,704 | $ | 225,508 | $ | 66,465 | 9,852 RSUs/ $79,900 |
Total Salary and Bonus Cash Received for 2012 | 2012 Base Salary | Bonus for 2012 | # of RSUs / Grant Date Fair Value of 2012 RSUs |
$332,751 | $230,603 | $103,656 | 22,114 RSUs/ $161,432 |
21
Total Cash Received | # of RSUs / Grant Date Fair | |||||||||||
for 2010 | 2010 Base Salary | Bonus for 2010 | Value of 2010 RSUs | |||||||||
$290,5511 | $ | 215,671 | $ | 93,799 | 6,570 RSUs/ $53,283 |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) | Non-Equity Incentive Plan Compen- sation ($) | Change in Pension Value Earnings ($) | All Other Compen- sation ($) | Summary Compen- sation Total ($) | Realized Compen- sation Total ($) |
Keith E. Alessi(5) CEO | 2012 | 673,077 | — | 1,050,010 | 1,141,423 | 4,517 | 16,848 | 2,885,875 | 1,689,171 |
Kevin A. Paprzycki CFO and Treasurer | 2012 | 255,962 | — | 182,018 | 111,998 | 8,957 | 16,774 | 575,709 | 458,729 |
Robert P. King(5) President and COO | 2012 | 318,750 | 50,000 | 730,771 | 392,302 | — | 88,760 | 1,580,583 | 746,395 |
Douglas P. Kathol Executive Vice President | 2012 | 285,625 | — | 230,023 | 141,543 | 17,782 | 16,848 | 691,821 | 505,569 |
Joseph E. Micheletti SVP - Coal Operations | 2012 | 229,095 | — | 161,432 | 103,656 | 34,159 | 25,400 | 553,742 | 385,839 |
Name | Position | Base Salary ($) | Targeted AIP ($) | Targeted LTIP ($) | Targeted Total Compensation ($) |
Robert P. King | President and CEO | 500,000 | 500,000 | 625,000 | 1,625,000 |
Kevin A. Paprzycki | CFO and Treasurer | 300,000 | 105,000 | 210,000 | 615,000 |
Douglas P. Kathol | Executive Vice President | 296,138 | 103,648 | 207,297 | 607,083 |
Joseph E. Micheletti | SVP - Coal Operations | 263,000 | 92,050 | 184,100 | 539,150 |
Jennifer S. Grafton | General Counsel and Secretary | 230,000 | 80,500 | 161,000 | 471,500 |
22
Change in | ||||||||||||||||||||||||||||||||||||
Non-Equity | Pension | |||||||||||||||||||||||||||||||||||
Stock | Option | Incentive Plan | Value | All Other | ||||||||||||||||||||||||||||||||
Name and Principal | Salary | Bonus | Awards | Awards | Compensation | Earnings | Compensation | Total | ||||||||||||||||||||||||||||
Position | Year | ($) | ($) | ($)(1)(2) | ($)(1) | ($)(3) | ($) | ($)(4) | ($) | |||||||||||||||||||||||||||
Keith E. Alessi | 2010 | 492,305 | — | 884,775 | — | 482,239 | 4,004 | 16,572 | 1,879,895 | |||||||||||||||||||||||||||
CEO and President | 2009 | 588,461 | 350,000 | 245,100 | — | 370,731 | 20,044 | 16,643 | 1,590,979 | |||||||||||||||||||||||||||
2008 | 403,846 | — | — | 710,400 | 242,308 | 3,775 | 12,222 | 1,372,551 | ||||||||||||||||||||||||||||
Kevin A. Paprzycki | 2010 | 213,948 | — | 72,309 | — | 101,994 | 5,907 | 16,202 | 410,360 | |||||||||||||||||||||||||||
CFO and Treasurer | 2009 | 213,077 | — | 45,752 | — | 38,354 | 3,599 | 12,467 | 313,249 | |||||||||||||||||||||||||||
2008 | 189,450 | — | — | 82,880 | 34,101 | 8,741 | 7,088 | 322,260 | ||||||||||||||||||||||||||||
Douglas P. Kathol | 2010 | 248,392 | — | 119,996 | — | 134,806 | 16,409 | 16,444 | 536,047 | |||||||||||||||||||||||||||
Executive Vice President | ||||||||||||||||||||||||||||||||||||
John V. O’Laughlin | 2010 | 224,239 | — | 79,900 | — | 66,465 | 28,987 | 16,274 | 415,865 | |||||||||||||||||||||||||||
VP — Coal Operations | 2009 | 225,222 | — | 68,628 | — | 80,535 | (5,611 | ) | 12,552 | 381,326 | ||||||||||||||||||||||||||
2008 | 211,374 | — | — | 177,600 | 45,657 | 52,408 | 6,971 | 494,010 | ||||||||||||||||||||||||||||
Morris W. Kegley | 2010 | 196,752 | — | 53,283 | — | 93,779 | 13,398 | 16,199 | 373,411 | |||||||||||||||||||||||||||
General Counsel | 2009 | 213,463 | — | 45,752 | — | 76,847 | 38,224 | 12,472 | 386,758 | |||||||||||||||||||||||||||
2008 | 200,156 | — | — | 82,880 | 36,028 | 30,301 | 7,411 | 356,776 |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($)(1) | Non-Equity Incentive Plan Compen- sation ($)(2) | Change in Pension Value Earnings ($) | All Other Compen- ation ($)(3)(4) | Total ($) |
Keith E. Alessi(5) CEO | 2012 | 673,077 | — | 1,050,010 | 1,141,423 | 4,517 | 16,848 | 2,885,875 |
2011 | 588,460 | — | 900,009 | 668,460 | 8,027 | 16,572 | 2,181,528 | |
2010 | 492,305 | — | 884,775 | 482,239 | 4,004 | 16,572 | 1,879,895 | |
Kevin A. Paprzycki CFO and Treasurer | 2012 | 255,962 | — | 182,018 | 111,998 | 8,957 | 16,774 | 575,709 |
2011 | 237,720 | — | 171,516 | 133,202 | 14,478 | 16,369 | 573,285 | |
2010 | 213,948 | — | 72,309 | 101,994 | 5,907 | 16,202 | 410,360 | |
Robert P. King(5) President and COO | 2012 | 318,750 | 50,000 | 730,771 | 392,302 | — | 88,760 | 1,580,583 |
Douglas P. Kathol Executive Vice President | 2012 | 285,625 | — | 230,023 | 141,543 | 17,782 | 16,848 | 691,821 |
2011 | 273,942 | — | 224,400 | 159,577 | 31,893 | 76,515 | 766,327 | |
2010 | 248,392 | — | 119,996 | 134,806 | 16,409 | 16,444 | 536,047 | |
Joseph E. Micheletti SVP - Coal Operations | 2012 | 229,095 | — | 161,432 | 103,656 | 34,159 | 25,400 | 553,742 |
2011 | 191,736 | — | 60,139 | 128,546 | 57,061 | 53,194 | 483,826 |
(1) | Amounts in these columns represent the aggregate grant date fair value of the equity awarded calculated in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 | |
2012. | ||
(2) | ||
Represents the cash bonus awarded under our Annual Incentive Plan, a discretionary performance-based award made in the first quarter of each fiscal year for performance in the prior fiscal year. | ||
(3) | “All Other Compensation” for | |
(4) | “All Other Compensation” for 2012 also includes $79,002 and $8,812 for Messrs. King and Micheletti, respectively, for relocation of their home. Mr. King was eligible for relocation under our Relocation Policy upon accepting his position with us in Englewood, Colorado. Upon Mr. Micheletti accepting the position of Senior Vice President - Coal Operations, he was eligible for relocation under the Relocation Policy for his move from Texas to Montana. | |
(5) | Mr. Alessi and Mr. King did not receive any additional compensation for their services as a director. |
23
Approval Date by | All Other Stock Awards: | Grant Date Fair Value of | ||||||||||||
Name | Grant Date | Committee/ Board | Number of Units (#) | Stock Awards($)(1) | ||||||||||
Keith E. Alessi | 7/01/2010 | 6/21/2010 | 59,775 | (1) | 484,775 | |||||||||
Kevin A. Paprzycki | 7/01/2010 | 6/17/2010 | 8,916 | (1) | 72,309 | |||||||||
Douglas P. Kathol | 7/01/2010 | 6/17/2010 | 14,769 | (1) | 119,996 | |||||||||
John V. O’Laughlin | 7/01/2010 | 6/17/2010 | 9,852 | (1) | 79,900 | |||||||||
Morris W. Kegley | 7/01/2010 | 6/17/2010 | 6,570 | (1) | 53,283 | |||||||||
Keith E. Alessi | 3/15/2011 | 3/09/2011 | 19,836 | (2) | 400,000 |
Estimated Future Payouts Under Performance- Based Equity Incentive Plan Awards(1) | |||||||
Name | Grant Date | Approval Date by Board | Threshold (#) | Target (#) | Maximum (#) | All Other Stock Awards(#)(1) | Grant Date Fair Value of Stock Awards($)(1) |
Keith E. Alessi | 6/1/2012 | 5/22/2012 | 57,534 | 71,918 | 86,302 | 71,919 | 1,050,010 |
Kevin A. Paprzycki | 6/1/2012 | 5/22/2012 | 9,973 | 12,466 | 14,959 | 12.468 | 182,018 |
Robert P. King | 6/1/2012 | 5/22/2012 | 23,288 | 29,110 | 34,932 | 29,112 | 425,020 |
Douglas P. Kathol | 6/1/2012 | 5/22/2012 | 12,603 | 15,754 | 18,905 | 15,756 | 230,023 |
Joseph Micheletti | 6/1/2012 | 5/22/2012 | 8,845 | 11,056 | 13,267 | 11,058 | 161,432 |
(1) | The | |
Option Awards | Stock Awards | |||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||
Underlying | Underlying | Option | ||||||||||||||||||||||
Unexercised | Unexercised | Exercise | Option | Market value of units | ||||||||||||||||||||
Options (#) | Options (#) | Price | Expiration | Units that have | that have not | |||||||||||||||||||
Name | Exercisable | Unexercisable | ($) | Date | not vested (#)(2) | vested as of 12/31/10($)(3) | ||||||||||||||||||
Keith E. Alessi | 30,556 | 0 | 24.12 | 5/02/17 | ||||||||||||||||||||
40,000 | 20,000 | (1) | 21.40 | 7/01/18 | ||||||||||||||||||||
20,000 | 238,800 | |||||||||||||||||||||||
59,775 | 713,713 | |||||||||||||||||||||||
Kevin A. Paprzycki | 2,500 | 0 | 29.48 | 6/05/16 | ||||||||||||||||||||
1,900 | 0 | 24.41 | 7/01/16 | |||||||||||||||||||||
4,666 | 2,334 | (1) | 21.40 | 7/01/18 | ||||||||||||||||||||
3,734 | 44,584 | |||||||||||||||||||||||
8,916 | 106,457 | |||||||||||||||||||||||
Douglas P. Kathol | 7,500 | 0 | 16.17 | 8/18/13 | ||||||||||||||||||||
6,700 | 0 | 19.37 | 7/01/14 | |||||||||||||||||||||
6,700 | 0 | 20.98 | 7/01/15 | |||||||||||||||||||||
4,300 | 0 | 24.41 | 7/01/16 | |||||||||||||||||||||
4,666 | 2,334 | (1) | 21.40 | 7/01/18 | ||||||||||||||||||||
3,734 | 44,584 | |||||||||||||||||||||||
14,796 | 176,664 | |||||||||||||||||||||||
John V. O’Laughlin | 491 | 0 | 18.09 | 5/29/11 | ||||||||||||||||||||
1,809 | 0 | 18.19 | 5/29/11 | |||||||||||||||||||||
4,700 | 0 | 12.86 | 6/24/12 | |||||||||||||||||||||
3,650 | 0 | 18.08 | 6/30/13 | |||||||||||||||||||||
3,650 | 0 | 17.80 | 12/31/13 | |||||||||||||||||||||
9,800 | 0 | 19.37 | 7/01/14 | |||||||||||||||||||||
14,600 | 0 | 20.98 | 7/01/15 | |||||||||||||||||||||
9,900 | 0 | 24.41 | 7/01/16 | |||||||||||||||||||||
10,000 | 5,000 | (1) | 21.40 | 7/01/18 | ||||||||||||||||||||
5,600 | 66,864 | |||||||||||||||||||||||
9,852 | 117,633 | |||||||||||||||||||||||
Morris W. Kegley | 1,900 | 0 | 24.41 | 7/01/16 | ||||||||||||||||||||
4,666 | 2,334 | (1) | 21.40 | 7/01/18 | ||||||||||||||||||||
3,734 | 44,584 | |||||||||||||||||||||||
6,570 | 78,446 |
Option Awards | Stock Awards | ||||||||||||
Name | Securities Underlying Unexercised Options(#) Exercisable | Option Exercise Price ($) | Option Expiration Date | Units that have not vested (#)(1) | Market value of units that have not vested as of 12/30/12($)(2) | Unearned units that have not vested (#)(3) | Market value of unearned units that have not vested as of 12/30/12($)(2) | ||||||
Keith E. Alessi | 30,556 | 24.12 | 5/2/2017 | ||||||||||
60,000 | 21.40 | 7/1/2018 | |||||||||||
19,925 | 186,100 | ||||||||||||
20,054 | 187,304 | ||||||||||||
71,919 | 671,723 | ||||||||||||
30,080 | 280,947 | ||||||||||||
71,918 | 671,714 | ||||||||||||
Kevin A. Paprzycki | 2,500 | 29.48 | 6/5/2016 | ||||||||||
1,900 | 24.41 | 7/1/2016 | |||||||||||
7,000 | 21.40 | 7/1/2018 | |||||||||||
2,972 | 27,758 |
Option Awards | Stock Awards | ||||||
Name | Securities Underlying Unexercised Options(#) Exercisable | Option Exercise Price ($) | Option Expiration Date | Units that have not vested (#)(1) | Market value of units that have not vested as of 12/30/12($)(2) | Unearned units that have not vested (#)(3) | Market value of unearned units that have not vested as of 12/30/12($)(2) |
3,822 | 35,697 | ||||||
12,468 | 116,451 | ||||||
5,732 | 53,537 | ||||||
12,466 | 116,432 | ||||||
Robert P. King | 29,112 | 271,906 | |||||
29,110 | 271,887 | ||||||
Douglas P. Kathol | 7,500 | 16.17 | 8/18/2013 | ||||
6,700 | 19.37 | 7/1/2014 | |||||
6,700 | 20.98 | 7/1/2015 | |||||
4,300 | 24.41 | 7/1/2016 | |||||
7,000 | 21.40 | 7/1/2018 | |||||
4,932 | 46,065 | ||||||
5,000 | 46,700 | ||||||
15,756 | 147,161 | ||||||
7,500 | 75,050 | ||||||
15,754 | 147,142 | ||||||
Joseph E. Micheletti | 5,000 | 21.40 | 7/1/2018 | ||||
1,252 | 11,694 | ||||||
1,340 | 12,516 | ||||||
11,058 | 103,282 | ||||||
2,010 | 18,773 | ||||||
11,056 | 103,263 |
(1) | ||
Awards in this column consist of restricted stock units with a grant dates of July 1, | ||
(2) | The market value of the awards of restricted stock units that have not yet vested was determined by multiplying the closing price of a share of common stock on December | |
(3) | Awards in this column consist of performance-based restricted stock units with a grant date of April 1, 2011 and June 1, 2012. These awards pay out at Threshold, Target and Maximum depending on the achievement of a free cash flow metric designated by the Compensation and Benefits Committee in 2011 and 2012. Upon achievement of the performance goal on April 1, 2014 and April 1, 2015, these awards cliff vest. If performance is not achieved, all awards will forfeit. |
24
Name | Shares Acquired on Vesting(#) | Stock Value Realized on Vesting($)(1) | ||||||
Keith E. Alessi | 10,000 | 81,100 | ||||||
Kevin A. Paprzycki | 1,866 | 15,133 | ||||||
Douglas P. Kathol | 1,866 | 15,133 | ||||||
John V. O’Laughlin | 2,800 | 22,708 | ||||||
Morris W. Kegley | 1,866 | 15,133 |
Name(2) | Shares Acquired on Vesting(#) | Stock Value Realized on Vesting($)(1) |
Keith E. Alessi | 39,952 | 372,159 |
Kevin A. Paprzycki | 6,750 | 63,470 |
Douglas P. Kathol | 9,299 | 87,075 |
Joseph E. Micheletti | 2,989 | 27,624 |
(1) | The market value of the awards was determined by multiplying the closing price of a share of common stock on July 1, | |
(2) | As Mr. King did not begin employment with us until March 2012, he did not vest in any awards in 2012. |
Present Value of | ||||||||||||||
Accumulated Benefit | ||||||||||||||
Number of Years | as of | Payments During Last | ||||||||||||
Credited Service | December 31, 2010 | Fiscal Year | ||||||||||||
Name | Plan Name | (#) | ($)(1) | ($) | ||||||||||
Keith E. Alessi | Westmoreland Retirement Plan (WCC) | 3.08 | 27,823 | — | ||||||||||
Kevin A. Paprzycki | Westmoreland Retirement Plan (WCC) | 4.0 | 27,148 | — | ||||||||||
Douglas P. Kathol | Westmoreland Retirement Plan (WCC) | 5.81 | 122,124 | — | ||||||||||
John V. O’Laughlin | Westmoreland Retirement Plan (BSS) | 10.0 | 229,237 | — | ||||||||||
Morris W. Kegley | Westmoreland Retirement Plan (WCC) | 4.67 | 124,615 | — |
Name | Plan Name | Number of Years Credited Service (#) | Present Value of Accumulated Benefit as of December 31, 2012 ($)(1) | Payments During Last Fiscal Year ($) |
Keith E. Alessi | Westmoreland Retirement Plan (WCC) | 2.08 | 35,850 | — |
Kevin A. Paprzycki | Westmoreland Retirement Plan (WCC) | 3.0 | 41,627 | — |
Douglas P. Kathol | Westmoreland Retirement Plan (WCC) | 5.81 | 154,017 | — |
Joseph E. Micheletti | Westmoreland Retirement Plan (WECO) | 10.0 | 183,891 | — |
(1) | Pension economic assumptions are consistent with our SFAS 87 financial reporting for fiscal year |
Time or Period of | ||||||||||||
Name | Type of Termination | Plan | Benefit Amount | Form of Payment | Payment | |||||||
Kevin A. Paprzycki | Termination | Pension Plan | $ | 732 | Monthly Annuity | Life | ||||||
Death | Pension Plan | $ | 559 | Monthly Annuity | Life of Spouse |
25
Name | Type of Termination | Plan | Benefit Amount | Form of Payment | Time or Period of Payment | ||
Kevin A. Paprzycki | Termination | Pension Plan | $ | 732 | Monthly Annuity | Life | |
Death | Pension Plan | $ | 559 | Monthly Annuity | Life of Spouse |
Time or Period of | ||||||||||||
Name | Type of Termination | Plan | Benefit Amount | Form of Payment | Payment | |||||||
Douglas P. Kathol | Termination | Pension Plan | $ | 1,291 | Monthly Annuity | Life | ||||||
Death | Pension Plan | $ | 985 | Monthly Annuity | Life of Spouse |
Name | Type of Termination | Plan | Benefit Amount | Form of Payment | Time or Period of Payment | ||
Douglas P. Kathol | Termination | Pension Plan | $ | 1,291 | Monthly Annuity | Life | |
Death | Pension Plan | $ | 985 | Monthly Annuity | Life of Spouse |
Time or Period of | ||||||||||||
Name | Type of Termination | Plan | Benefit Amount | Form of Payment | Payment | |||||||
John V. O’Laughlin | Retirement/Termination | Pension Plan | $ | 2,072 | Monthly Annuity | Life | ||||||
Disability | Pension Plan | $ | 2,072 | Monthly Annuity | Life | |||||||
Death | Pension Plan | $ | 947 | Monthly Annuity | Life of Spouse |
Name | Type of Termination | Plan | Benefit Amount | Form of Payment | Time or Period of Payment | ||
Joseph E. Micheletti | Termination | Pension Plan | $ | 840 | Monthly Annuity | Life | |
Death | Pension Plan | $ | 319 | Monthly Annuity | Life of Spouse |
Time or Period of | ||||||||||||
Name | Type of Termination | Plan | Benefit Amount | Form of Payment | Payment | |||||||
Morris W. Kegley | Termination | Pension Plan | $ | 993 | Monthly Annuity | Life | ||||||
Death | Pension Plan | $ | 758 | Monthly Annuity | Life of Spouse |
Termination for Cause/ | Involuntary | Termination upon | ||||||||||||||||||||
Name | Type of Compensation | Voluntary Termination | Not for Cause | Change-in-Control | Retirement | Death | ||||||||||||||||
Keith Alessi | Salary | $ | 0 | $ | 400,000 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Vested Equity(1)(2) | $ | 0 | $ | 0 | $ | 952,513 | $ | 0 | $ | 952,513 | ||||||||||||
Outplacement Services and health benefits | $ | 0 | $ | 22,812 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
TOTAL | $ | 0 | $ | 422,812 | $ | 952,513 | $ | 0 | $ | 952,513 |
Termination for Cause/ | Involuntary | Termination upon | ||||||||||||||||||||
Name | Type of Compensation | Voluntary Termination | Not for Cause | Change-in-Control | Retirement | Death | ||||||||||||||||
Kevin Paprzycki | Salary | $ | 0 | $ | 217,175 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Vested Equity(1)(2) | $ | 0 | $ | 0 | $ | 151,041 | $ | 0 | $ | 151,041 | ||||||||||||
Outplacement Services and health benefits | $ | 0 | $ | 21,873 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
TOTAL | $ | 0 | $ | 239,048 | $ | 151,041 | $ | 0 | $ | 151,041 |
26
Termination for Cause/ | Involuntary | Termination upon | ||||||||||||||||||||
Name | Type of Compensation | Voluntary Termination | Not for Cause | Change-in-Control | Retirement | Death | ||||||||||||||||
Douglas Kathol | Salary | $ | 0 | $ | 275,000 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Vested Equity(1)(2) | $ | 0 | $ | 0 | $ | 221,248 | $ | 0 | $ | 221,248 | ||||||||||||
Outplacement Services and health benefits | $ | 0 | $ | 13,911 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
TOTAL | $ | 0 | $ | 288,911 | $ | 221,248 | $ | 0 | $ | 221,248 |
Termination for Cause/ | Involuntary | Termination upon | ||||||||||||||||||||
Name | Type of Compensation | Voluntary Termination | Not for Cause | Change-in-Control | Retirement | Death | ||||||||||||||||
John O’Laughlin | Salary | $ | 0 | $ | 225,508 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Vested Equity(1)(2) | $ | 0 | $ | 0 | $ | 184,497 | $ | 0 | $ | 184,497 | ||||||||||||
Outplacement Services and health benefits | $ | 0 | $ | 17,163 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
TOTAL | $ | 0 | $ | 242,671 | $ | 184,497 | $ | 0 | $ | 184,497 |
Termination for Cause/ | Involuntary | Termination upon | ||||||||||||||||||||
Name | Type of Compensation | Voluntary Termination | Not for Cause | Change-in-Control | Retirement | Death | ||||||||||||||||
Morris Kegley | Salary | $ | 0 | $ | 215,671 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Vested Equity(1)(2) | $ | 0 | $ | 0 | $ | 123,030 | $ | 0 | $ | 123,030 | ||||||||||||
Outplacement Services and health benefits | $ | 0 | $ | 18,371 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
TOTAL | $ | 0 | $ | 234,042 | $ | 123,030 | $ | 0 | $ | 123,030 |
Name | Type of Compensation | Termination for Cause/ Voluntary Termination | Involuntary Not for Cause | Termination upon Change-in-Control | Retirement | Death(3) |
Keith Alessi | Salary | $— | $700,000 | $— | $— | $— |
Vested Equity(1)(2) | $— | $— | $1,045,127 | $— | $1,378,029 | |
Outplacement services and health benefits | $— | $23,024 | $— | $— | $— | |
TOTAL | $— | $23,024 | $1,045,127 | $— | $1,378,029 |
Name | Type of Compensation | Termination for Cause/ Voluntary Termination | Involuntary Not for Cause | Termination upon Change-in-Control | Retirement | Death(3) |
Kevin Paprzycki | Salary | $— | $260,000 | $— | $— | $— |
Vested Equity(1)(2) | $— | $— | $179,907 | $— | $240,439 | |
Outplacement services and health benefits | $— | $22,644 | $— | $— | $— | |
TOTAL | $— | $22,644 | $179,907 | $— | $240,439 |
Name | Type of Compensation | Termination for Cause/ Voluntary Termination | Involuntary Not for Cause | Termination upon Change-in-Control | Retirement | Death(3) |
Robert P. King | Salary | $— | $425,000 | $— | $— | $— |
Vested Equity(1)(2) | $— | $— | $271,906 | $— | $340,188 | |
Outplacement services and health benefits | $— | $19,380 | $— | $— | $— | |
TOTAL | $— | $19,380 | $271,906 | $— | $340,188 |
Name | Type of Compensation | Termination for Cause/ Voluntary Termination | Involuntary Not for Cause | Termination upon Change-in-Control | Retirement | Death(3) |
Douglas Kathol | Salary | $— | $287,513 | $— | $— | $— |
Vested Equity(1)(2) | $— | $— | $239,926 | $— | $317,822 | |
Outplacement services and health benefits | $— | $17,981 | $— | $— | $— | |
TOTAL | $— | $17,981 | $239,926 | $— | $317,822 |
Name | Type of Compensation | Termination for Cause/ Voluntary Termination | Involuntary Not for Cause | Termination upon Change-in-Control | Retirement | Death(3) |
Joseph Micheletti | Salary | $— | $230,603 | $— | $— | $— |
Vested Equity(1)(2) | $— | $— | $127,491 | $— | $164,397 | |
Outplacement services and health benefits | $— | $22,644 | $— | $— | $— | |
TOTAL | $— | $22,644 | $127,491 | $— | $164,397 |
(1) | Various unvested options and SARs held by our named executive officers automatically vest upon a change-in-control. However, all outstanding options held by our named executive officers have an exercise price greater than | |
The value of vested equity was determined by multiplying the number of vested shares times $9.34, the closing stock price on December 30, 2012. | ||
(2) | We recently awarded long-term equity to the named executive officers in the form of restricted stock units with grant dates of July 1, | |
(3) | The performance-based restricted stock units vest pro rata upon death of disability. For valuation purposes, we assume the triggering event (death) occurred on December 31, 2012 resulting in the vesting of a third of the award. |
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Fee Category(1) | 2010 | 2009 | ||||||
Audit Fees(2) | $ | 911,000 | $ | 856,000 | ||||
Total Fees | $ | 911,000 | $ | 856,000 |
Fee Category(1) | 2012 | 2011 | ||||
Audit Fees(2) | $ | 883,000 | $ | 855,000 | ||
Audit Related Fees (3) | $ | 234,807 | $ | 120,321 | ||
Total Fees | $ | 1,117,807 | $ | 975,321 |
(1) | We did not pay any | |
2012. | ||
(2) | Audit fees consist of fees for the audit of our financial statements, including fees related to the audit of our internal controls over financial reporting, the review of the interim financial statements included in our quarterly reports on Form 10-Q, and other professional services provided in connection with statutory and regulatory filings. | |
(3) | Audit Related Fees in 2011 consist of fees we paid to Ernst & Young as part of the high-yield note financing in February 2011, as well as $43,321 in out-of-pocket expenses incurred as part of the audit largely related to travel to our mines. Audit Related Fees in 2012 consist of fees we paid to Ernst & Young in connection with Kemmerer Mine acquisition and the high-yield note financing in January 2012, as well as $30,107 in out-of-pocket expenses incurred as part of the audit largely related to travel to our mines. |
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Westmoreland Coal Company | VOTE BY INTERNET Before The Meeting - Go to www.proxyvote.com | ||
WESTMORELAND COAL COMPANY 9540 SOUTH MAROON CIR. SUITE 200 ENGLEWOOD, CO 80112 ATTN: JENNIFER S. GRAFTON | Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. During The Meeting - Go to You may attend the the box marked by the arrow available and follow the instructions. | ||
VOTE BY PHONE | |||
Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions. | |||
VOTE BY MAIL | |||
Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. |
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: | ||
KEEP THIS PORTION FOR YOUR RECORDS | ||
WESTMORELAND COAL COMPANY | For All | Withhold All | For All Except | To withhold authority to vote for any individual nominee(s), mark "For All Except" and write the number(s) of the nominee(s) on the line below. | ||||||||||||||
The Board of Directors recommends you vote FOR the following: | ||||||||||||||||||
1. Election of Directors | ¨ | ¨ | ¨ | |||||||||||||||
Nominees | ||||||||||||||||||
01) Keith E. Alessi | 05) Richard M. Klingaman | |||||||||||||||||
02) Gail E. Hamilton | 06) Craig R. Mackus | |||||||||||||||||
03) Michael G. Hutchinson | 07) Jan B. Packwood | |||||||||||||||||
04) Robert P. King | 08) Robert C. Scharp | |||||||||||||||||
The Board of Directors recommends you vote FOR proposals 2 and 3. | ||||||||||||||||||
For | Against | Abstain | ||||||||||||||||
2) Advisory approval of Westmoreland Coal Company's executive compensation. | ¨ | ¨ | ¨ | |||||||||||||||
3) Ratification of the appointment of Ernst & Young LLP as principal independent auditor for fiscal year 2013. | ¨ | ¨ | ¨ | |||||||||||||||
NOTE:Such other business as may properly come before the meeting or any adjournment thereof. |
Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. | |||||||||||||||||||
Signature [PLEASE SIGN WITHIN BOX] | Date | Signature (Joint Owners) | Date |
WESTMORELAND COAL COMPANY | |||
Annual Meeting of Stockholders | |||
May | |||
This proxy is solicited by the Board of Directors | |||
The undersigned hereby constitutes and appoints Jennifer S. Grafton as true and lawful agent and proxy with power of substitution, to represent the undersigned and to vote all shares of Common Stock held by the undersigned at the Annual Meeting of Stockholders to be held via live webcast at www.virtualshareholdermeeting.com/WLB2013 on Tuesday, May 21, 2013, at 8:30 a.m. (mountain daylight time), and at any adjournments thereof, on all matters coming before said meeting as noted on the reverse side of the card. | |||
This proxy, when properly executed, will be voted in the manner directed herein. If no directions are given, this proxy will be voted in accordance with the Board of Directors' recommendations. IN THEIR DISCRETION, THE PROXIES ARE AUTHORIZED TO VOTE UPON SUCH OTHER BUSINESS AS MAY AND PROPERLY COME BEFORE THE MEETING OR ANY POSTPONEMENT OR ADJOURNMENT THEREOF. | |||
You are encouraged to specify your choices by marking the appropriate boxes, SEE REVERSE SIDE, but you need not mark any boxes if you wish to vote in accordance with the Board of Directors' recommendations. The proxies cannot vote the shares unless they sign and return this card. | |||
Continued and to be signed on reverse side |