UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant x | |
Filed by a Party other than the Registrant o | |
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o Preliminary Proxy Statement | |
o Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | |
x Definitive Proxy Statement | |
o Definitive Additional Materials | |
o Soliciting Material Pursuant to §240.14a-12 |
ILLINOIS TOOL WORKS INC.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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2. | To ratify the appointment of Deloitte & Touche LLP as ITW’s independent registered public accounting firm; | |
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• | Stockholders who have previously signed up to Receive Proxy Materials on the Internet: On or about March |
• | Stockholders who have previously signed up to Receive All Future Proxy Materials in Printed Format by Mail: On or about March |
• | All other Stockholders: On or about March |
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1. | The election of the | |
2. | The ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for | |
3. | A stockholder proposal | |
1. | In person: | Attend our Annual Meeting, where ballots will be provided; or | ||
2. | By telephone: | See the instructions at www.proxyvote.com; or | ||
3. | By Internet: | See the instructions at www.proxyvote.com; or | ||
4. | By mail: | If you received a printed copy of these proxy materials by mail, by signing, dating and mailing the enclosed proxy card. |
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1. | Notify our Secretary in writing before our Annual Meeting that you wish to revoke your proxy; |
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Marvin D. Brailsford, |
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Susan Crown, | ||
Don H. Davis, Jr., | ||
Robert C. McCormack, |
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Robert S. Morrison, |
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James A. Skinner, | ||
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David B. Speer, | ||
Pamela B. Strobel, |
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Meetings in | ||
Members: | ||
Don H. Davis, Jr. (Chairman) | ||
Marvin D. Brailsford | ||
Robert C. McCormack | ||
James A. Skinner | ||
David B. Smith, Jr. (appt. 12/4/09) | ||
Pamela B. Strobel |
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Meetings in | 3 | |
Members: | William F. Aldinger (Chairman) | |
Susan Crown | ||
Robert S. Morrison | ||
James A. Skinner | ||
Pamela B. Strobel |
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Meetings in | 3 | |
Members: | Marvin D. Brailsford (Chairman) | |
Susan Crown | ||
Don H. Davis, Jr. | ||
Robert S. Morrison (appt. Chairman 2/12/10) | ||
James A. Skinner |
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Meetings in | 2 | |
Members: | Robert C. McCormack (Chairman) | |
William F. Aldinger | ||
Don H. Davis, Jr. | ||
Robert S. Morrison | ||
David B. Smith, Jr. (appt. 12/4/09) | ||
Harold B. Smith |
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Fees Earned or | Fees Earned or | |||||||||||||||||||||||
Paid in | Stock | Paid in | Stock | |||||||||||||||||||||
Cash | Awards | Total | Cash | Awards | Total | |||||||||||||||||||
Name(1) | ($)(3)(4) | ($)(5) | ($) | |||||||||||||||||||||
Name(1) | ($)(3)(4) | ($)(5) | ($) | |||||||||||||||||||||
William F. Aldinger | $ | 140,000 | $ | 29,979 | $ | 169,979 | $ | 140,000 | $ | 29,992 | $ | 169,992 | ||||||||||||
Michael J. Birck(2) | $ | 50,687 | $ | 29,979 | $ | 80,666 | ||||||||||||||||||
Marvin D. Brailsford | $ | 140,000 | $ | 29,979 | $ | 169,979 | $ | 140,000 | $ | 29,992 | $ | 169,992 | ||||||||||||
Susan Crown | $ | 135,000 | $ | 29,979 | $ | 164,979 | $ | 135,000 | $ | 29,992 | $ | 164,992 | ||||||||||||
Don H. Davis, Jr. | $ | 144,931 | $ | 29,979 | $ | 174,910 | $ | 150,000 | $ | 29,992 | $ | 179,992 | ||||||||||||
Robert C. McCormack | $ | 140,000 | $ | 29,979 | $ | 169,979 | $ | 140,000 | $ | 29,992 | $ | 169,992 | ||||||||||||
Robert S. Morrison | $ | 135,000 | $ | 29,979 | $ | 164,979 | $ | 135,000 | $ | 29,992 | $ | 164,992 | ||||||||||||
James A. Skinner | $ | 135,000 | $ | 29,979 | $ | 164,979 | $ | 135,000 | $ | 29,992 | $ | 164,992 | ||||||||||||
David B. Smith, Jr.(2) | $ | 10,161 | $ | 48,490 | $ | 58,651 | ||||||||||||||||||
Harold B. Smith | $ | 140,000 | $ | 29,979 | $ | 169,979 | $ | 140,000 | $ | 29,992 | $ | 169,992 | ||||||||||||
Pamela B. Strobel | $ | 120,536 | $ | 78,489 | $ | 199,025 | $ | 135,000 | $ | 29,992 | $ | 164,992 |
(1) | David B. Speer is not included in this table since he does not receive any compensation for his service as a director. | |
(2) | ||
(3) |
Name | Fees Deferred in 2008 | Number of Shares | Fees Deferred in 2009 | Number of Shares | ||||||||||||
Michael J. Birck | $ | 50,687 | 1,031 | |||||||||||||
Marvin D. Brailsford | $ | 70,000 | 1,593 | $ | 70,000 | 1,834 | ||||||||||
Susan Crown | $ | 67,500 | 1,769 | |||||||||||||
Don H. Davis, Jr. | $ | 144,931 | 3,310 | $ | 150,000 | 3,931 | ||||||||||
Robert S. Morrison | $ | 135,000 | 3,072 | $ | 135,000 | 3,538 | ||||||||||
James A. Skinner | $ | 135,000 | 3,072 | $ | 135,000 | 3,538 | ||||||||||
Pamela B. Strobel | $ | 120,536 | 2,754 | $ | 135,000 | 3,538 |
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(4) | In addition to $135,000 annual retainer, includes committee chair fees ($5,000 for Mr. Aldinger; | |
(5) | In |
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Shares of Common Stock | Phantom | Percent | Shares of Common Stock | Phantom | Percent | |||||||||||||||||||
Name of Beneficial Owner | Beneficially Owned | Stock Units | of Class | Beneficially Owned | Stock Units | of Class | ||||||||||||||||||
Directors (other than Executive Officers) | ||||||||||||||||||||||||
William F. Aldinger | 29,852 | (1) | 2,314 | * | 31,162 | (1) | 2,393 | * | ||||||||||||||||
Marvin D. Brailsford | 16,205 | 4,711 | * | 19,488 | 4,872 | * | ||||||||||||||||||
Susan Crown | 26,199 | (2) | 4,762 | * | 28,845 | (2) | 4,925 | * | ||||||||||||||||
Don H. Davis, Jr. | 25,503 | 2,279 | * | 31,125 | 2,357 | * | ||||||||||||||||||
Robert C. McCormack | 18,132,011 | (3) | 4,762 | 3.6 | % | 17,111,665 | (3) | 4,925 | 3.4 | % | ||||||||||||||
Robert S. Morrison | 56,569 | 2,187 | * | 61,356 | 2,262 | * | ||||||||||||||||||
James A. Skinner | 9,634 | 2,127 | * | 14,266 | 2,200 | * | ||||||||||||||||||
David B. Smith, Jr. | 117,887 | (4) | 1,000 | * | ||||||||||||||||||||
Harold B. Smith | 50,120,159 | (4) | — | 10.0 | % | 45,737,361 | (5) | — | 9.1 | % | ||||||||||||||
Pamela B. Strobel | 3,395 | 1,020 | * | 7,929 | 1,055 | * | ||||||||||||||||||
Named Executive Officers | ||||||||||||||||||||||||
David B. Speer | 1,326,206 | (5) | — | * | 1,594,097 | (6) | — | * | ||||||||||||||||
Ronald D. Kropp | 120,337 | (6) | — | * | 141,582 | (7) | — | * | ||||||||||||||||
Thomas J. Hansen | 680,230 | (7) | — | * | 735,089 | (8) | — | * | ||||||||||||||||
E. Scott Santi | 289,850 | (9) | — | * | ||||||||||||||||||||
Russell M. Flaum | 626,807 | (8) | — | * | 536,861 | (10) | — | * | ||||||||||||||||
Hugh J. Zentmyer | 595,285 | (9) | — | * | ||||||||||||||||||||
Philip M. Gresh, Jr. | 365,432 | (11) | — | * | ||||||||||||||||||||
— | * | — | * | |||||||||||||||||||||
Directors and Executive Officers as a Group (27 Persons) | 55,422,863 | (10) | 24,162 | 11.1 | % | |||||||||||||||||||
Directors and Executive Officers as a Group (29 Persons) | 51,375,516 | (12) | 25,989 | 10.2 | % |
* | Less than 1% |
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(1) | Includes (a) 6,000 shares owned by a charitable foundation of which Mr. Aldinger is an officer and a director; and (b) 200 shares owned by Mr. Aldinger’s spouse, as to which he disclaims beneficial ownership. | |
(2) | Includes (a) 4,000 shares owned by Ms. Crown’s spouse, as to which she disclaims beneficial ownership; and (b) 4,000 shares held in trusts of which Ms. Crown’s children are beneficiaries, as to which she disclaims beneficial ownership. | |
(3) | Includes (a) 800 shares owned in a trust, as to which Mr. McCormack shares voting and investment power with The Northern Trust Company; (b) | |
(4) | Includes (a) | |
(5) | Includes (a) 25,848,414 shares owned in 11 trusts, one family limited partnership, and one limited liability company as to which Mr. Harold Smith shares voting and investment power with The Northern Trust Company and others | |
Includes (a) |
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Includes (a) | ||
(8) | Includes | |
(9) | Includes (a) | |
(10) | Includes | |
(11) | Includes (a) 7,488 shares allocated to Mr. Gresh’s account in the ITW Savings and Investment Plan; and (b) 357,344 shares covered by options exercisable within 60 days. | |
(12) | Includes 4,939,862 shares covered by options exercisable within 60 days and |
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Name and Address of | Shares of Common Stock | Percent | Shares of Common Stock | Percent | ||||||||||||
Beneficial Owner | Beneficially Owned | of Class | Beneficially Owned | of Class | ||||||||||||
The Northern Trust Company | 63,321,682 | (1) | 12.4 | % | 58,284,290 | (1) | 11.6 | % | ||||||||
50 South LaSalle Street Chicago, IL 60603 | ||||||||||||||||
Barrow, Hanley, Mewhinney & Strauss, Inc. | 29,268,378 | (2) | 5.7 | % | ||||||||||||
2200 Ross Avenue, 31st Floor Dallas, TX75201-2761 | ||||||||||||||||
50 South LaSalle Street, Chicago, IL 60603 |
(1) | The Northern Trust Company and its affiliates act as sole fiduciary or co-fiduciary of trusts and other fiduciary accounts that own an aggregate of |
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Annual Cash Compensation | Base Salary | Objective: Provide a base wage that is competitive and reflective of individual performance • Generally represents 10-18% of total compensation for the named executive officers* | ||||
(27-40% of Total Compensation)* | Annual Incentive | Objective: Motivate executives to achieve annual business and individual goals • Key Performance Metrics: Income growth • Generally represents 17-22% of total compensation for the named executive officers* | ||||
Long-Term Incentives (60-73% of Total Compensation)* | Cash-Based Company Wide Growth Plan Performance- Based Restricted Stock Units Stock Options | Objective: Motivate executives to make decisions that focus on long-term stockholder value creation • Core long-term incentive program consists of three distinct components with the sum targeting delivery of long-term incentive compensation within the median range of our competitive market • Cash-based company-wide growth plan is new for FY 2010 • Key Performance Metrics: Revenue Growth, ROIC, and EPS • Generally represents 60-73% of total compensation for the named executive officers* | ||||
Retirement Benefits | • Company provides two retirement savings plans: a 401(k) plan and a nonqualified deferred compensation plan • Company provides two pension plans: a qualified pension plan and a nonqualified pension plan to restore benefits otherwise lost due to IRS limitations on qualified plan compensation | |||||
* | Total compensation, as used in the table above, is defined as the sum of base salary, target annual cash incentives and the grant date fair value of long-term equity incentives and does not necessarily tie to the values disclosed in the Summary Compensation Table and supplemental tables. |
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• | We froze base salaries at 2008 levels; | |
• | For 2009, theyear-over-year income growth component of our annual cash incentive awards was replaced with a performance goal measured against our 2009 annual plan target income, and the maximum payout for elected officers was reduced from 100% to 53%; | |
• | We replaced one-third of the annual equity award to named executive officers with performance-based restricted stock units under our long-term incentive program; | |
• | We eliminated our financial counseling perquisite and reduced the above-market interest returns on deferrals after 2009 under our nonqualified deferred compensation program; | |
• | Effective for 2010, we redesigned the Business Growth Incentive Plan component of our long-term incentive program to provide a cash-based company-wide growth plan based on annual awards with3-year performance cycles tied to revenue growth and return on invested capital goals; | |
• | The Compensation Committee engaged an independent advisor to work on its behalf in cooperation with management to review the ITW Executive Compensation Program, confirm appropriateness of comparison (peer) companies, and assess our compensation governance process; and | |
• | We reviewed our programs and believe that our compensation programs and policies are not designed to encourage our executives to take unnecessary or excessive risks that could harm the long-term value of the Company. |
• | Our compensation philosophy. | |
• | Compensation comparisons from a peer group of diversified multinational industrial companies. | |
• | Management’s contribution to our short-term and long-term growth. |
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• | Provide employees with a competitive pay arrangement. | |
• | ||
• | Drive pay for performance through a competitive short-term incentive cash bonus program, which links pay primarily to business unit performance and individualized objectives. | |
• | Reward long-term performance and provide for capital accumulation through |
• | ||
• | Companies with | |
• | Companies that compete for | |
• | Companies with whom we may compete for executive talent. |
3M Company | Eaton Corporation | Masco Corporation | ||
Caterpillar Inc. | Emerson Electric Company | Parker-Hannifin Corporation | ||
Cooper Industries Ltd. | Honeywell International Inc. | Textron Inc. | ||
Danaher Corporation | Ingersoll-Rand Company Ltd. | TRW Automotive Holdings Corporation | ||
Deere & Company | ITT Corporation | Tyco International Ltd. | ||
Dover Corporation | Johnson Controls, Inc. | United Technologies Corporation |
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Maximum P | Maximum P Factor Award% | |||||||
% of Achievement | Factor Award% | |||||||
2009 Income Achievement vs. Plan | (Elected Officers) | |||||||
115% and above | 100 | % | ||||||
110% | 90 | % | ||||||
105% | 82.5 | % | ||||||
100% | 75 | % | 53 | % Max | ||||
95% | 65 | % | 48 | % | ||||
90% | 57 | % | 43 | % | ||||
85% | 47 | % | 39 | % | ||||
80% | 34 | % | 34 | % | ||||
79% and below | 0 | % | ||||||
Below 80% | 0 | % |
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2009 Planned | ||||||||||||||||||||||||||||||||||||
2007 | 2008 | Corporate or Unit | 2009 Actual | % of | % of | |||||||||||||||||||||||||||||||
Corporate/Unit | Corporate/Unit | % of | % of P | Income Levels | Corporate or Unit Income | Achievement | Achievement | % of P | ||||||||||||||||||||||||||||
Named Executive Officer | Income Levels (000s) | Income Levels (000s) | Achievement | Factor Award | (Millions) | Levels (Millions) | (Actual) | (as Adjusted)(1) | Factor Award | |||||||||||||||||||||||||||
David B. Speer | $ | 1,711,936 | $ | 1,583,266 | 92.5 | % | 61.0 | % | $ | 1,078.5 | $ | 969.5 | 89.9 | % | 81.2 | % | 35.2 | % | ||||||||||||||||||
Ronald D. Kropp | $ | 1,711,936 | $ | 1,583,266 | 92.5 | % | 61.0 | % | $ | 1,078.5 | $ | 969.5 | 89.9 | % | 81.2 | % | 35.2 | % | ||||||||||||||||||
Thomas J. Hansen(1) | $ | 1,067,403 | $ | 922,799 | 86.5 | % | 53.8 | % | ||||||||||||||||||||||||||||
Russell M. Flaum(1) | $ | 341,930 | $ | 313,511 | 91.7 | % | 60.2 | % | ||||||||||||||||||||||||||||
Hugh J. Zentmyer(1) | $ | 419,363 | $ | 448,967 | 107.1 | % | 78.3 | % | ||||||||||||||||||||||||||||
Thomas J. Hansen(2) | $ | 756.2 | $ | 533.3 | 70.5 | % | 70.5 | % | 11.6 | % | ||||||||||||||||||||||||||
E. Scott Santi(2) | $ | 1,068.4 | $ | 824.1 | 77.1 | % | 77.1 | % | 11.6 | % | ||||||||||||||||||||||||||
Russell M. Flaum(2) | $ | 312.0 | $ | 163.8 | 52.5 | % | 52.5 | % | 11.6 | % | ||||||||||||||||||||||||||
Philip M. Gresh, Jr.(2) | $ | 392.4 | $ | 347.4 | 88.5 | % | 88.5 | % | 39.9 | % |
(1) | The | |
(2) | For these executives, the first four columns above show the income levels as planned and achieved for their respective businesses. The composite award |
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the achievement level for their respective businesses with that of the Company as a whole, as follows: Mr. Hansen, |
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Year-End | Year-End | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Award | 2008 | P Factor | O Factor | Total | Award | 2009 | P Factor | O Factor | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Named Executive Officer | Maximum | Salary | Achievement | Amount | Achievement | Amount | Award(1) | Maximum | Salary | Achievement | Amount | Achievement | Amount | Award(1) | ||||||||||||||||||||||||||||||||||||||||||
David B. Speer | 200 | % | $ | 1,100,000 | 61.0 | % | $ | 805,200 | 88.8 | % | $ | 781,000 | $ | 1,586,200 | 200 | % | $ | 1,100,000 | 35.2 | % | $ | 464,640 | 90.0 | % | $ | 792,000 | $ | 1,256,640 | ||||||||||||||||||||||||||||
Ronald D. Kropp | 150 | % | $ | 350,000 | 61.0 | % | $ | 192,150 | 97.0 | % | $ | 203,700 | $ | 395,850 | 150 | % | $ | 350,000 | 35.2 | % | $ | 110,880 | 93.5 | % | $ | 196,350 | $ | 307,230 | ||||||||||||||||||||||||||||
Thomas J. Hansen | 200 | % | $ | 500,000 | 53.8 | % | $ | 322,800 | 96.5 | % | $ | 386,000 | $ | 708,800 | 200 | % | $ | 500,000 | 11.6 | % | $ | 69,600 | 95.0 | % | $ | 380,000 | $ | 449,600 | ||||||||||||||||||||||||||||
Russell M. Flaum | 200 | % | $ | 391,900 | 60.2 | % | $ | 283,109 | 85.5 | % | $ | 268,060 | $ | 551,168 | ||||||||||||||||||||||||||||||||||||||||||
Hugh J. Zentmyer | 200 | % | $ | 375,600 | 78.3 | % | $ | 352,914 | 100.0 | % | $ | 300,480 | $ | 653,394 | ||||||||||||||||||||||||||||||||||||||||||
E. Scott Santi | 200 | % | $ | 400,000 | 11.6 | % | $ | 55,680 | 90.5 | % | $ | 289,600 | $ | 345,280 | ||||||||||||||||||||||||||||||||||||||||||
Russell M. Flaum(2) | 200 | % | $ | 391,900 | 11.6 | % | $ | 27,200 | 80.0 | % | $ | 125,056 | $ | 152,256 | ||||||||||||||||||||||||||||||||||||||||||
Philip M. Gresh, Jr. | 200 | % | $ | 340,000 | 39.9 | % | $ | 162,792 | 90.0 | % | $ | 244,800 | $ | 407,592 |
(1) | These amounts are shown in the Summary Compensation Table under “Non-Equity Incentive Plan Compensation.” | |
(2) | The Total Award amount is pro-rated for the portion of the year worked prior to retirement. |
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Maximum P Factor Award% | Maximum P Factor Award% | |||||||
2009 Income Achievement vs. Plan* | (excluding Elected Officers) | (Elected Officers) | ||||||
120% | 110 | % | ||||||
115% | 100 | % | ||||||
110% | 90 | % | ||||||
105% | 82.5 | % | ||||||
100% | 75 | % | 53 | % Max | ||||
95% | 65 | % | 48 | % | ||||
90% | 57 | % | 43 | % | ||||
85% | 47 | % | 39 | % | ||||
80% | 34 | % | 34 | % | ||||
Below 80% | 0 | % | 0 | % |
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2009 Annual Equity Award | BGIP | |||||||||||
Named Executive Officer | Stock Options | Qualifying RSUs | Qualifying RSUs | |||||||||
David B. Speer | $ | 4,440,000 | $ | 2,220,000 | $ | 1,100,000 | ||||||
Ronald D. Kropp | $ | 621,600 | $ | 310,800 | $ | 262,500 | ||||||
Thomas J. Hansen | $ | 1,776,000 | $ | 888,000 | $ | 375,000 | ||||||
Russell M. Flaum | $ | 710,400 | $ | 355,200 | $ | 293,925 | ||||||
Hugh J. Zentmyer | $ | — | $ | — | $ | — |
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Change | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in Pension | in Pension | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value and | Value and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Equity | Nonqualified | Non-Equity | Nonqualified | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive Plan | Deferred | All Other | Incentive Plan | Deferred | All Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and | Stock | Option | Compensation | Compensation | Compensation | Stock | Option | Compensation | Compensation | Compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal Position | Year | Salary(1) | Awards(2) | Awards(2) | (1)(3) | Earnings(4) | (5)(6) | Total | Year | Salary(1) | Awards(2) | Awards(2) | (1)(3) | Earnings(4) | (5)(6) | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
David B. Speer | 2008 | $ | 1,099,616 | — | $ | 4,166,125 | $ | 1,586,200 | $ | 3,240,740 | $ | 100,822 | $ | 10,193,503 | 2009 | $ | 1,100,000 | $ | 2,968,337 | $ | 4,440,686 | $ | 1,256,640 | $ | 624,701 | $ | 94,017 | $ | 10,484,381 | |||||||||||||||||||||||||||||||||||
Chairman and Chief | 2007 | $ | 948,077 | — | $ | 2,512,995 | $ | 1,781,000 | $ | 1,310,313 | $ | 89,708 | $ | 6,642,093 | 2008 | $ | 1,099,616 | — | $ | 6,659,700 | $ | 1,586,200 | $ | 3,240,740 | $ | 100,822 | $ | 12,687,078 | ||||||||||||||||||||||||||||||||||||
Executive Officer | 2006 | $ | 815,385 | $ | 366,586 | $ | 1,691,916 | $ | 1,615,000 | $ | 818,965 | $ | 83,305 | $ | 5,391,157 | 2007 | $ | 948,077 | — | $ | 5,755,600 | $ | 1,781,000 | $ | 1,310,313 | $ | 89,708 | $ | 9,884,698 | |||||||||||||||||||||||||||||||||||
Ronald D. Kropp | 2008 | $ | 349,752 | — | $ | 543,169 | $ | 395,850 | $ | 156,473 | $ | 25,123 | $ | 1,470,367 | 2009 | $ | 350,000 | $ | 512,574 | $ | 621,696 | $ | 307,230 | $ | 53,737 | $ | 26,105 | $ | 1,871,342 | |||||||||||||||||||||||||||||||||||
Senior Vice President & | 2007 | $ | 259,708 | — | $ | 311,989 | $ | 368,053 | $ | 54,530 | $ | 16,520 | $ | 1,010,800 | 2008 | $ | 349,752 | — | $ | 932,358 | $ | 395,850 | $ | 156,473 | $ | 25,123 | $ | 1,859,556 | ||||||||||||||||||||||||||||||||||||
Chief Financial Officer | 2006 | $ | 217,727 | $ | 38,492 | $ | 111,998 | $ | 212,288 | $ | 38,449 | $ | 14,395 | $ | 633,349 | 2007 | $ | 259,708 | — | $ | 863,340 | $ | 368,053 | $ | 54,530 | $ | 16,520 | $ | 1,562,151 | |||||||||||||||||||||||||||||||||||
Thomas J. Hansen | 2008 | $ | 499,842 | — | $ | 1,965,680 | $ | 708,800 | $ | 1,117,699 | $ | 45,512 | $ | 4,337,533 | 2009 | $ | 500,000 | $ | 1,129,220 | $ | 1,776,272 | $ | 449,600 | $ | 709,559 | $ | 42,308 | $ | 4,606,959 | |||||||||||||||||||||||||||||||||||
Vice Chairman | 2007 | $ | 447,231 | — | $ | 1,102,416 | $ | 800,496 | $ | 410,195 | $ | 43,023 | $ | 2,803,361 | 2008 | $ | 499,842 | — | $ | 2,663,880 | $ | 708,800 | $ | 1,117,699 | $ | 45,512 | $ | 5,035,733 | ||||||||||||||||||||||||||||||||||||
2006 | $ | 402,244 | $ | 366,586 | $ | 422,550 | $ | 782,000 | $ | 343,590 | $ | 41,087 | $ | 2,358,057 | 2007 | $ | 447,231 | — | $ | 2,877,800 | $ | 800,496 | $ | 410,195 | $ | 43,023 | $ | 4,578,745 | ||||||||||||||||||||||||||||||||||||
Russell M. Flaum | 2008 | $ | 391,842 | — | $ | 773,420 | $ | 551,168 | $ | 728,146 | $ | 34,369 | $ | 2,478,945 | ||||||||||||||||||||||||||||||||||||||||||||||||||
E. Scott Santi | 2009 | $ | 399,135 | $ | 903,376 | $ | 1,421,022 | $ | 345,280 | $ | 333,754 | $ | 32,470 | $ | 3,435,037 | |||||||||||||||||||||||||||||||||||||||||||||||||
Vice Chairman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Russell M. Flaum(7) | 2009 | $ | 200,472 | $ | 580,368 | $ | 710,511 | $ | 152,256 | $ | 178,361 | $ | 621,521 | $ | 2,443,489 | |||||||||||||||||||||||||||||||||||||||||||||||||
Former Executive Vice | 2008 | $ | 391,842 | — | $ | 1,065,552 | $ | 551,168 | $ | 728,146 | $ | 34,369 | $ | 2,771,077 | ||||||||||||||||||||||||||||||||||||||||||||||||||
President | 2007 | $ | 374,599 | — | $ | 1,151,120 | $ | 590,114 | $ | 445,719 | $ | 35,811 | $ | 2,597,363 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Philip M. Gresh, Jr. | 2009 | $ | 340,000 | $ | 545,566 | $ | 710,511 | $ | 407,592 | $ | 355,021 | $ | 28,760 | $ | 2,387,450 | |||||||||||||||||||||||||||||||||||||||||||||||||
Executive Vice President | 2007 | $ | 374,599 | — | $ | 502,599 | $ | 590,114 | $ | 445,719 | $ | 35,811 | $ | 1,948,842 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2006 | $ | 360,192 | $ | 366,586 | $ | 225,360 | $ | 648,581 | $ | 404,790 | $ | 41,857 | $ | 2,047,366 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hugh J. Zentmyer | 2008 | $ | 379,865 | — | $ | 1,626,102 | $ | 653,394 | $ | 643,441 | $ | 87,255 | $ | 3,390,057 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Vice President | 2007 | $ | 351,162 | — | $ | 1,173,221 | $ | 660,672 | $ | 442,558 | $ | 35,126 | $ | 2,662,739 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2006 | $ | 334,469 | $ | 307,016 | $ | 366,589 | $ | 652,441 | $ | 387,548 | $ | 37,914 | $ | 2,085,977 |
(1) | Salary and non-equity incentive plan compensation for |
(2) |
29
1/2/2004 | 1/2/2004 | 12/10/2004 | 12/10/2004 | 02/01/2006 | 02/01/2006 | 02/09/2007 | 02/09/2007 | 02/08/2008 | 02/08/2008 | Total | ||||||||||||||||||||||||||||||||||||||
Restricted | Restricted | Stock | Stock | Stock | Stock | Stock | Stock | Stock | Stock | Stock | ||||||||||||||||||||||||||||||||||||||
Stock | Stock | Option | Option | Option | Option | Option | Option | Option | Option | Option | ||||||||||||||||||||||||||||||||||||||
Grant | Grant | Grant | Grant | Grant | Grant | Grant | Grant | Grant | Grant | Grants | ||||||||||||||||||||||||||||||||||||||
Shares | Expense | Shares | Expense | Shares | Expense | Shares | Expense | Shares | Expense | Expense | ||||||||||||||||||||||||||||||||||||||
Vesting | Recognized | Vesting | Recognized | Vesting | Recognized | Vesting | Recognized | Vesting | Recognized | Recognized | ||||||||||||||||||||||||||||||||||||||
Name | Year | (#) | ($) | (#) | ($)(a) | (#) | ($) | (#) | ($) | (#) | ($) | ($) | ||||||||||||||||||||||||||||||||||||
David B. Speer | 2008 | — | — | 75,000 | — | 100,000 | $ | 1,236,066 | 100,000 | $ | 1,434,936 | — | $ | 1,495,123 | $ | 4,166,125 | ||||||||||||||||||||||||||||||||
2007 | — | — | 75,000 | — | 100,000 | $ | 1,232,651 | — | $ | 1,280,344 | — | — | $ | 2,512,995 | ||||||||||||||||||||||||||||||||||
2006 | 8,800 | $ | 366,586 | 75,000 | $ | 565,115 | 100,000 | $ | 1,126,801 | — | — | — | — | $ | 1,691,916 | |||||||||||||||||||||||||||||||||
Ronald D. Kropp | 2008 | 0 | 2,500 | $ | 25,906 | 7,500 | $ | 92,705 | 15,000 | $ | 215,241 | — | $ | 209,317 | $ | 543,169 | ||||||||||||||||||||||||||||||||
2007 | — | — | 2,500 | $ | 27,488 | 7,500 | $ | 92,449 | — | $ | 192,052 | — | — | $ | 311,989 | |||||||||||||||||||||||||||||||||
2006 | 924 | $ | 38,492 | 2,500 | $ | 27,488 | 7,500 | $ | 84,510 | — | — | — | — | $ | 111,998 | |||||||||||||||||||||||||||||||||
Thomas J. Hansen | 2008 | 0 | 37,500 | — | 37,500 | $ | 463,524 | 50,000 | $ | 717,468 | — | $ | 784,688 | $ | 1,965,680 | |||||||||||||||||||||||||||||||||
2007 | — | — | 37,500 | — | 37,500 | $ | 462,244 | — | $ | 640,172 | — | — | $ | 1,102,416 | ||||||||||||||||||||||||||||||||||
2006 | 8,800 | $ | 366,586 | 37,500 | — | 37,500 | $ | 422,550 | — | — | — | — | $ | 422,550 | ||||||||||||||||||||||||||||||||||
Russell M. Flaum | 2008 | 0 | 20,000 | — | 20,000 | $ | 247,213 | 20,000 | $ | 286,987 | — | $ | 239,220 | $ | 773,420 | |||||||||||||||||||||||||||||||||
2007 | — | — | 20,000 | — | 20,000 | $ | 246,530 | — | $ | 256,069 | — | — | $ | 502,599 | ||||||||||||||||||||||||||||||||||
2006 | 8,800 | $ | 366,586 | 20,000 | — | 20,000 | $ | 225,360 | — | — | — | — | $ | 225,360 | ||||||||||||||||||||||||||||||||||
Hugh J. Zentmyer | 2008 | 0 | 20,000 | — | 40,000 | $ | 181,628 | 80,000 | $ | 378,925 | 80,000 | $ | 1,065,549 | $ | 1,626,102 | |||||||||||||||||||||||||||||||||
2007 | — | — | 20,000 | — | 20,000 | $ | 401,026 | — | $ | 772,195 | — | — | $ | 1,173,221 | ||||||||||||||||||||||||||||||||||
2006 | 7,370 | $ | 307,016 | 20,000 | — | 20,000 | $ | 366,589 | — | — | — | — | $ | 366,589 |
(3) | Represents amounts awarded under our Executive Incentive Plan, based on the executive’s base salary as of December 31 for that year and paid in the following year. Further information regarding this plan and awards thereunder can be found above under “Compensation Discussion and Analysis — Annual Cash Incentives” on page |
(4) | These amounts |
33
Excess Interest | Change in Pension Value and | Excess Interest | Change in Pension Value and | |||||||||||||||||||||||||||||||||||||
Accrual in | Accrual in | Credit on Deferred | Nonqualified Deferred | Accrual in | Accrual in | Credit on Deferred | Nonqualified Deferred | |||||||||||||||||||||||||||||||||
Name | Year | Accumulation Plan | Nonqualified Plan | Compensation | Compensation Earnings ($) | Year | Accumulation Plan | Nonqualified Plan | Compensation | Compensation Earnings ($) | ||||||||||||||||||||||||||||||
David B. Speer | 2008 | $ | 135,620 | $ | 2,998,990 | $ | 106,130 | $ | 3,240,740 | 2009 | $ | (41,012 | ) | $ | 527,026 | $ | 138,687 | $ | 624,701 | |||||||||||||||||||||
2007 | $ | 55,211 | $ | 1,173,289 | $ | 81,813 | $ | 1,310,313 | 2008 | $ | 135,620 | $ | 2,998,990 | $ | 106,130 | $ | 3,240,740 | |||||||||||||||||||||||
2006 | $ | 46,772 | $ | 711,127 | $ | 61,066 | $ | 818,965 | 2007 | $ | 55,211 | $ | 1,173,289 | $ | 81,813 | $ | 1,310,313 | |||||||||||||||||||||||
Ronald D. Kropp | 2008 | $ | 37,614 | $ | 109,300 | $ | 9,559 | $ | 156,473 | 2009 | $ | (10,693 | ) | $ | 48,644 | $ | 15,786 | $ | 53,737 | |||||||||||||||||||||
2007 | $ | 22,159 | $ | 26,155 | $ | 6,216 | $ | 54,530 | 2008 | $ | 37,614 | $ | 109,300 | $ | 9,559 | $ | 156,473 | |||||||||||||||||||||||
2006 | $ | 19,446 | $ | 14,630 | $ | 4,373 | $ | 38,449 | 2007 | $ | 22,159 | $ | 26,155 | $ | 6,216 | $ | 54,530 | |||||||||||||||||||||||
Thomas J. Hansen | 2008 | $ | (30,809 | ) | $ | 1,080,307 | $ | 68,201 | $ | 1,117,699 | 2009 | $ | 434,726 | $ | 189,999 | $ | 84,834 | $ | 709,559 | |||||||||||||||||||||
2007 | $ | 76,880 | $ | 277,424 | $ | 55,891 | $ | 410,195 | 2008 | $ | (30,809 | ) | $ | 1,080,307 | $ | 68,201 | $ | 1,117,699 | ||||||||||||||||||||||
2006 | $ | 77,695 | $ | 219,341 | $ | 46,554 | $ | 343,590 | 2007 | $ | 76,880 | $ | 277,424 | $ | 55,891 | $ | 410,195 | |||||||||||||||||||||||
E. Scott Santi | 2009 | $ | 45,473 | $ | 272,805 | $ | 15,476 | $ | 333,754 | |||||||||||||||||||||||||||||||
Russell M. Flaum | 2008 | $ | 119,649 | $ | 564,864 | $ | 43,633 | $ | 728,146 | 2009 | $ | (11,408 | ) | $ | 135,509 | $ | 54,260 | $ | 178,361 | |||||||||||||||||||||
2007 | $ | 53,563 | $ | 356,372 | $ | 35,784 | $ | 445,719 | 2008 | $ | 119,649 | $ | 564,864 | $ | 43,633 | $ | 728,146 | |||||||||||||||||||||||
2006 | $ | 31,355 | $ | 343,470 | $ | 29,965 | $ | 404,790 | 2007 | $ | 53,563 | $ | 356,372 | $ | 35,784 | $ | 445,719 | |||||||||||||||||||||||
Hugh J. Zentmyer | 2008 | $ | 31,664 | $ | 569,954 | $ | 41,823 | $ | 643,441 | |||||||||||||||||||||||||||||||
2007 | $ | 107,611 | $ | 299,499 | $ | 35,448 | $ | 442,558 | ||||||||||||||||||||||||||||||||
2006 | $ | 101,045 | $ | 255,886 | $ | 30,617 | $ | 387,548 | ||||||||||||||||||||||||||||||||
Philip M. Gresh, Jr. | 2009 | $ | 263,574 | $ | (11,961 | ) | $ | 103,408 | $ | 355,021 |
(5) |
30
(6) | For | |
(7) | See “Certain Relationships and Related Transactions — Separation Agreement with Russell M. Flaum” for a description of |
All Other | All Other | All Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option | Grant Date | Stock | Option | Grant Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Awards: | Fair Value | Awards: | Awards: | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Payouts | Number of | Exercise or | of Stock | Estimated Future Payouts | Number of | Number of | Exercise or | of Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Under Non-Equity | Securities | Base Price | and | Under Non-Equity | Shares of | Securities | Base Price | and | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive Plan Awards(1) | Underlying | of Option | Option | Incentive Plan Awards(1) | Stock or | Underlying | of Option | Option | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant | Threshold | Target | Maximum | Options | Awards | Awards | Grant | Threshold | Target | Maximum | Units | Options | Awards | Awards | ||||||||||||||||||||||||||||||||||||||||||||||
Name | Date | ($) | ($) | ($) | (#) | ($/Sh)(2) | ($)(3) | Date | ($) | ($) | ($) | (#)(2) | (#) | ($/Sh)(3) | ($)(4) | |||||||||||||||||||||||||||||||||||||||||||||
David B. Speer | 2/8/2008 | $ | 448,800 | $ | 1,738,000 | $ | 2,200,000 | 500,000 | $ | 48.51 | $ | 6,660,000 | 2/13/2009 | $ | 448,800 | $ | 1,738,000 | $ | 2,200,000 | 94,533 | 433,593 | $ | 35.12 | $ | 7,409,023 | |||||||||||||||||||||||||||||||||||
Ronald D. Kropp | 2/8/2008 | $ | 107,100 | $ | 414,750 | $ | 525,000 | 70,000 | $ | 48.51 | $ | 932,400 | 2/13/2009 | $ | 107,100 | $ | 414,750 | $ | 525,000 | 16,324 | 60,703 | $ | 35.12 | $ | 1,134,270 | |||||||||||||||||||||||||||||||||||
Thomas J. Hansen | 2/8/2008 | $ | 204,000 | $ | 790,000 | $ | 1,000,000 | 200,000 | $ | 48.51 | $ | 2,664,000 | 2/13/2009 | $ | 204,000 | $ | 790,000 | $ | 1,000,000 | 35,962 | 173,437 | $ | 35.12 | $ | 2,905,492 | |||||||||||||||||||||||||||||||||||
E. Scott Santi | 2/13/2009 | $ | 163,200 | $ | 632,000 | $ | 800,000 | 28,770 | 138,750 | $ | 35.12 | $ | 2,324,398 | |||||||||||||||||||||||||||||||||||||||||||||||
Russell M. Flaum | 2/8/2008 | $ | 159,895 | $ | 619,202 | $ | 783,800 | 80,000 | $ | 48.51 | $ | 1,065,600 | 2/13/2009 | $ | 159,895 | $ | 619,202 | $ | 783,800 | 18,483 | 69,375 | $ | 35.12 | $ | 1,290,879 | |||||||||||||||||||||||||||||||||||
Hugh J. Zentmyer | 2/8/2008 | $ | 153,245 | $ | 593,448 | $ | 751,200 | 80,000 | $ | 48.51 | $ | 1,065,600 | ||||||||||||||||||||||||||||||||||||||||||||||||
Philip M. Gresh, Jr. | 2/13/2009 | $ | 138,720 | $ | 537,200 | $ | 680,000 | 17,375 | 69,375 | $ | 35.12 | $ | 1,256,077 |
(1) | These columns reflect the range of potential payouts under the Executive Incentive Plan for the named executive officers as set by the Compensation Committee in February |
34
factor payout of 34%, which is realized upon achievement of 80% of |
(2) | Includes BGIP awards in the form of PRSUs as follows: Mr. Speer, 31,321 units; Mr. Kropp, 7,474 units; Mr. Hansen, 10,678 units; Mr. Santi, 8,542 units; Mr. Flaum, 10,461 units; and Mr. Gresh, 7,261 units. | |
Grant date fair market value was equal to the market closing price of | ||
3135
Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||||||||||||||
Option Awards | Option Awards | Equity | Incentive | |||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Number of | Incentive | Plan Awards: | |||||||||||||||||||||||||||||||||||||||
Securities | Securities | Securities | Securities | Plan Awards: | Market or | |||||||||||||||||||||||||||||||||||||||
Underlying | Underlying | Underlying | Underlying | Number | Payout Value | |||||||||||||||||||||||||||||||||||||||
Unexercised | Unexercised | Option | Unexercised | Unexercised | Option | of Unearned | of Unearned | |||||||||||||||||||||||||||||||||||||
Options | Options | Exercise | Option | Options | Options | Exercise | Option | Units That | Units That | |||||||||||||||||||||||||||||||||||
(#) | (#) | Price | Expiration | Grant | (#) | (#) | Price | Expiration | Have Not | Have Not | ||||||||||||||||||||||||||||||||||
Name | Exercisable | Unexercisable | ($) | Date | Date(1) | Exercisable | Unexercisable | ($) | Date | Vested(2) | Vested | |||||||||||||||||||||||||||||||||
David B. Speer | 60,000 | (1) | — | $ | 32.75 | 12/17/2009 | 12/14/2001 | 120,000 | (3) | — | $ | 31.13 | 12/14/2011 | |||||||||||||||||||||||||||||||
150,000 | (1) | — | $ | 27.94 | 12/15/2010 | 12/10/2004 | 300,000 | (4) | — | $ | 47.13 | 12/10/2014 | ||||||||||||||||||||||||||||||||
120,000 | (1) | — | $ | 31.13 | 12/14/2011 | 02/01/2006 | 400,000 | (5) | — | $ | 42.08 | 02/01/2016 | ||||||||||||||||||||||||||||||||
300,000 | (2) | — | $ | 47.13 | 12/10/2014 | 02/09/2007 | 200,000 | (3) | 200,000 | $ | 51.60 | 02/09/2017 | ||||||||||||||||||||||||||||||||
300,000 | (3) | 100,000 | (4) | $ | 42.08 | 2/1/2016 | 02/08/2008 | 125,000 | 375,000 | $ | 48.51 | 02/08/2018 | ||||||||||||||||||||||||||||||||
100,000 | (1) | 300,000 | (5) | $ | 51.60 | 2/9/2017 | 02/13/2009 | — | 433,593 | $ | 35.12 | 02/13/2019 | 94,533 | $ | 4,536,640 | |||||||||||||||||||||||||||||
— | 500,000 | (6) | $ | 48.51 | 2/8/2018 | |||||||||||||||||||||||||||||||||||||||
Ronald D. Kropp | 6,000 | — | $ | 32.75 | 12/17/2009 | 12/10/2004 | 10,000 | — | $ | 47.13 | 12/10/2014 | |||||||||||||||||||||||||||||||||
16,000 | — | $ | 27.94 | 12/15/2010 | ||||||||||||||||||||||||||||||||||||||||
12,000 | — | $ | 31.13 | 12/14/2011 | ||||||||||||||||||||||||||||||||||||||||
10,000 | — | $ | 47.13 | 12/10/2014 | 02/01/2006 | 30,000 | — | $ | 42.08 | 02/01/2016 | ||||||||||||||||||||||||||||||||||
22,500 | 7,500 | (4) | $ | 42.08 | 2/1/2016 | 02/09/2007 | 30,000 | 30,000 | $ | 51.60 | 02/09/2017 | |||||||||||||||||||||||||||||||||
15,000 | 45,000 | (5) | $ | 51.60 | 2/9/2017 | 02/08/2008 | 17,500 | 52,500 | $ | 48.51 | 02/08/2018 | |||||||||||||||||||||||||||||||||
— | 70,000 | (6) | $ | 48.51 | 2/8/2018 | 02/13/2009 | — | 60,703 | $ | 35.12 | 02/13/2019 | 16,324 | $ | 783,390 | ||||||||||||||||||||||||||||||
Thomas J. Hansen | 60,000 | — | $ | 32.75 | 12/17/2009 | 12/14/2001 | 120,000 | — | $ | 31.13 | 12/14/2011 | |||||||||||||||||||||||||||||||||
66,000 | — | $ | 27.94 | 12/15/2010 | 12/10/2004 | 150,000 | — | $ | 47.13 | 12/10/2014 | ||||||||||||||||||||||||||||||||||
02/01/2006 | 150,000 | — | $ | 42.08 | 02/01/2016 | |||||||||||||||||||||||||||||||||||||||
02/09/2007 | 100,000 | 100,000 | $ | 51.60 | 02/09/2017 | |||||||||||||||||||||||||||||||||||||||
02/08/2008 | 50,000 | 150,000 | $ | 48.51 | 02/08/2018 | |||||||||||||||||||||||||||||||||||||||
02/13/2009 | — | 173,437 | $ | 35.12 | 02/13/2019 | 35,962 | $ | 1,725,837 | ||||||||||||||||||||||||||||||||||||
E. Scott Santi | 06/19/2007 | 8,687 | — | $ | 55.12 | 12/15/2010 | ||||||||||||||||||||||||||||||||||||||
120,000 | — | $ | 31.13 | 12/14/2011 | 12/10/2004 | 60,000 | — | $ | 47.13 | 12/10/2014 | ||||||||||||||||||||||||||||||||||
150,000 | $ | 47.13 | 12/10/2014 | 02/01/2006 | 70,000 | — | $ | 42.08 | 02/01/2016 | |||||||||||||||||||||||||||||||||||
112,500 | 37,500 | (4) | $ | 42.08 | 2/1/2016 | 02/09/2007 | 40,000 | 40,000 | $ | 51.60 | 02/09/2017 | |||||||||||||||||||||||||||||||||
50,000 | 150,000 | (5) | $ | 51.60 | 2/9/2017 | 02/08/2008 | 20,000 | 60,000 | $ | 48.51 | 02/08/2018 | |||||||||||||||||||||||||||||||||
— | 200,000 | (6) | $ | 48.51 | 2/8/2018 | 02/13/2009 | — | 138,750 | $ | 35.12 | 02/13/2019 | 28,770 | $ | 1,380,669 | ||||||||||||||||||||||||||||||
Russell M. Flaum | 60,000 | — | $ | 32.75 | 12/17/2009 | 12/15/2000 | 40,000 | — | $ | 27.94 | 12/15/2010 | |||||||||||||||||||||||||||||||||
150,000 | — | $ | 27.94 | 12/15/2010 | 12/14/2001 | 120,000 | — | $ | 31.13 | 12/14/2011 | ||||||||||||||||||||||||||||||||||
120,000 | — | $ | 31.13 | 12/14/2011 | 12/10/2004 | 80,000 | — | $ | 47.13 | 07/01/2014 | ||||||||||||||||||||||||||||||||||
80,000 | — | $ | 47.13 | 12/10/2014 | 02/01/2006 | 60,000 | — | $ | 42.08 | 05/31/2010 | ||||||||||||||||||||||||||||||||||
60,000 | 20,000 | (4) | $ | 42.08 | 2/1/2016 | 02/09/2007 | 60,000 | — | $ | 51.60 | 05/31/2010 | |||||||||||||||||||||||||||||||||
20,000 | 60,000 | (5) | $ | 51.60 | 2/9/2017 | 02/08/2008 | 40,000 | — | $ | 48.51 | 05/31/2010 | |||||||||||||||||||||||||||||||||
— | 80,000 | (6) | $ | 48.51 | 2/8/2018 | 02/13/2009 | — | — | — | — | 4,621 | $ | 221,762 | |||||||||||||||||||||||||||||||
Hugh J. Zentmyer | 120,000 | — | $ | 27.94 | 12/15/2010 | |||||||||||||||||||||||||||||||||||||||
Philip M. Gresh, Jr. | 12/14/2001 | 80,000 | — | $ | 31.13 | 12/14/2011 | ||||||||||||||||||||||||||||||||||||||
100,000 | — | $ | 31.13 | 12/14/2011 | 12/10/2004 | 80,000 | — | $ | 47.13 | 12/10/2014 | ||||||||||||||||||||||||||||||||||
80,000 | — | $ | 47.13 | 12/10/2014 | 02/01/2006 | 80,000 | — | $ | 42.08 | 02/01/2016 | ||||||||||||||||||||||||||||||||||
60,000 | 20,000 | (4)(7) | $ | 42.08 | 2/1/2016 | 02/09/2007 | 40,000 | 40,000 | $ | 51.60 | 02/09/2017 | |||||||||||||||||||||||||||||||||
20,000 | 60,000 | (5)(7) | $ | 51.60 | 2/9/2017 | 02/08/2008 | 20,000 | 60,000 | $ | 48.51 | 02/08/2018 | |||||||||||||||||||||||||||||||||
— | 80,000 | (6)(7) | $ | 48.51 | 2/8/2018 | 02/13/2009 | — | 69,375 | $ | 35.12 | 02/13/2019 | 17,375 | $ | 833,813 |
(1) | Stock options vest at the rate of 25% per year from grant date with exceptions for termination upon death, disability, retirement and change in control. Stock options granted in 2000, 2001, 2004 and 2006 contain a reload feature providing that if the exercise price is paid by surrender of previously owned shares of ITW common stock, a new option in the amount of the shares surrendered will be granted. The exercise price of the new option would equal the market value of a share of ITW common stock on the date of grant. The new option will vest in one year, provided the shares acquired on exercise of the underlying option are held for one year, and will expire on the same date as the underlying option. |
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(2) | PRSUs are subject to three-year vesting as well as a performance goal. | |
(3) | Entire award transferred to a family limited partnership. | |
Stock options for 225,000 of these shares were transferred to a family limited partnership. | ||
Stock options for 200,000 of these shares were transferred to a family limited partnership. | ||
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Option Awards | Option Awards | Stock Awards | ||||||||||||||||||||||
Number of | Number of | Number of | ||||||||||||||||||||||
Shares | Shares | Shares | ||||||||||||||||||||||
Acquired | Value Realized | Acquired | Value Realized | Acquired | Value Realized | |||||||||||||||||||
on Exercise | on Exercise | on Exercise | on Exercise | on Vesting | on Vesting | |||||||||||||||||||
Name | (#) | ($) | (#) | ($) | (#) | ($) | ||||||||||||||||||
David B. Speer | 60,000 | $ | 1,285,457 | 210,000 | $ | 3,034,145 | ||||||||||||||||||
Ronald D. Kropp | 4,000 | $ | 11,318 | 34,000 | $ | 479,220 | ||||||||||||||||||
Thomas J. Hansen | — | — | 126,000 | $ | 878,651 | |||||||||||||||||||
E. Scott Santi | 40,460 | $ | 797,706 | |||||||||||||||||||||
Russell M. Flaum | 50,000 | $ | 366,000 | 170,000 | $ | 2,483,187 | 4,621 | $ | 221,762 | |||||||||||||||
Hugh J. Zentmyer | — | — | ||||||||||||||||||||||
Philip M. Gresh, Jr. | 76,000 | $ | 1,616,917 |
Number of | Present | |||||||||
Years of | Value of | |||||||||
Credited | Accumulated | |||||||||
Service | Benefit | |||||||||
Name | Plan Name | (#) | ($)(1) | |||||||
David B. Speer | ITW Retirement Accumulation Plan | 30.553 | $ | 800,147 | ||||||
ITW Nonqualified Pension Plan | 30.553 | $ | 7,347,677 | |||||||
Ronald D. Kropp | ITW Retirement Accumulation Plan |
Number of | Present | |||||||||||||
Years of | Value of | Payments | ||||||||||||
Credited | Accumulated | During Last | ||||||||||||
Service | Benefit | Fiscal Year | ||||||||||||
Name | Plan Name | (#) | ($)(1) | ($) | ||||||||||
David B. Speer | ITW Retirement Accumulation Plan | 31.553 | $ | 759,134 | ||||||||||
ITW Nonqualified Pension Plan | 31.553 | $ | 7,874,702 | |||||||||||
Ronald D. Kropp | ITW Retirement Accumulation Plan | 16.083 | $ | 163,631 | ||||||||||
ITW Nonqualified Pension Plan | 16.083 | $ | 237,738 | |||||||||||
Thomas J. Hansen | ITW Retirement Accumulation Plan | 29.256 | $ | 1,776,333 | ||||||||||
ITW Nonqualified Pension Plan | 29.256 | $ | 2,913,221 | |||||||||||
E. Scott Santi | ITW Retirement Accumulation Plan | 27.621 | $ | 388,906 | ||||||||||
ITW Nonqualified Pension Plan | 27.621 | $ | 987,196 | |||||||||||
Russell M. Flaum(2) | ITW Retirement Accumulation Plan | N/A | $ | 0 | $ | 679,657 | ||||||||
ITW Nonqualified Pension Plan | 33.750 | $ | 2,635,344 | |||||||||||
Philip M. Gresh, Jr. | ITW Retirement Accumulation Plan | 20.542 | $ | 1,394,156 | ||||||||||
ITW Nonqualified Pension Plan | 20.542 | $ | 1,126,854 |
(1) | Assuming the individual receives a lump sum distribution at normal retirement, present values are based on the | |
(2) | Mr. |
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On Final Average Pay in Excess | ||||||||
Age During the Year | On Total Final Average Pay | of Covered Compensation(1) | ||||||
Less than 30 | 2% | 2% | ||||||
30-34 | 3% | 2% | ||||||
35-39 | 4% | 2% | ||||||
40-44 | 5% | 2% | ||||||
45 | 7% | 2% | ||||||
46-49 | 7% | 6% | ||||||
50-54 | 10% | 6% | ||||||
55-59 | 13% | 6% | ||||||
60 or older | 16% | 6% |
(1) | Covered compensation is a35-year average of the maximum earnings recognized in calculating Social Security benefits. For |
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Executive | Registrant | Aggregate | Aggregate Balance | Executive | Registrant | Aggregate | Aggregate Balance | Aggregate | ||||||||||||||||||||||||||||
Contributions in | Contributions in | Earnings in | at December 31, | Contributions in | Contributions in | Earnings in | at December 31, | Distributions in | ||||||||||||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | 2009 | 2009 | 2009 | 2009 | ||||||||||||||||||||||||||||
Name | ($)(1) | ($)(2) | ($)(3) | ($)(3)(4) | ($)(1) | ($)(2) | ($)(3) | ($)(3)(4) | ($) | |||||||||||||||||||||||||||
David B. Speer | $ | 773,584 | $ | 100,822 | $ | 459,895 | $ | 6,169,563 | $ | 719,136 | $ | 94,017 | $ | 600,977 | $ | 7,583,694 | ||||||||||||||||||||
Ronald D. Kropp | $ | 141,731 | $ | 25,123 | $ | 41,421 | $ | 600,782 | $ | 223,755 | $ | 26,105 | $ | 68,406 | $ | 919,047 | ||||||||||||||||||||
Thomas J. Hansen | $ | 285,060 | $ | 45,512 | $ | 295,536 | $ | 3,913,353 | $ | 266,760 | $ | 42,308 | $ | 367,613 | $ | 4,590,034 | ||||||||||||||||||||
E. Scott Santi | $ | 92,771 | $ | 32,470 | $ | 67,062 | $ | 858,945 | ||||||||||||||||||||||||||||
Russell M. Flaum | $ | 171,039 | $ | 34,369 | $ | 189,077 | $ | 2,482,192 | $ | 178,193 | $ | 26,782 | $ | 235,126 | $ | 2,848,316 | $ | 73,977 | ||||||||||||||||||
Hugh J. Zentmyer | $ | 104,676 | $ | 38,138 | $ | 181,232 | $ | 2,382,567 | ||||||||||||||||||||||||||||
Philip M. Gresh, Jr. | $ | 154,428 | $ | 28,760 | $ | 448,103 | $ | 5,516,120 |
(1) | Includes deferrals of | |
(2) | These amounts are also included in the All Other Compensation column of the Summary Compensation Table for | |
(3) | Footnote 4 to the Summary Compensation Table sets forth above-market interest for | |
(4) | In addition to the registrant’s contributions shown in the table above, and excess interest as disclosed for |
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
Name | December 31, 2007 | December 31, 2006 | December 31, 2008 | December 31, 2007 | ||||||||||||
David B. Speer | $ | 860,740 | $ | 93,950 | $ | 980,535 | $ | 860,740 | ||||||||
Ronald D. Kropp | $ | 98,906 | $ | 44,652 | $ | 176,413 | $ | 98,906 | ||||||||
Thomas J. Hansen | $ | 367,122 | $ | 161,193 | $ | 397,772 | $ | 367,122 | ||||||||
Russell M. Flaum | $ | 223,788 | $ | 64,183 | $ | 249,041 | $ | 223,788 | ||||||||
Hugh J. Zentmyer | $ | 167,423 | $ | 72,426 |
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Nonqualified | Nonqualified | |||||||||||||||||||||||
Name | Pension Plan | Pension Plan | Total | Pension Plan | Pension Plan | Total | ||||||||||||||||||
David B. Speer | $ | 685,819 | $ | 6,297,818 | $ | 6,983,637 | $ | 759,134 | $ | 7,874,703 | $ | 8,633,837 | ||||||||||||
Ronald D. Kropp | $ | 144,349 | $ | 154,635 | $ | 298,984 | $ | 163,627 | $ | 237,742 | $ | 401,369 | ||||||||||||
Thomas J. Hansen | $ | 2,019,505 | $ | 2,292,691 | $ | 4,312,196 | $ | 2,213,923 | $ | 3,698,494 | $ | 5,912,417 | ||||||||||||
Russell M. Flaum | $ | 599,161 | $ | 2,305,071 | $ | 2,904,232 | ||||||||||||||||||
Hugh J. Zentmyer | $ | 2,077,436 | $ | 993,906 | $ | 3,071,342 | ||||||||||||||||||
E. Scott Santi | $ | 388,906 | $ | 987,197 | $ | 1,376,103 | ||||||||||||||||||
Philip M. Gresh, Jr. | $ | 1,644,649 | $ | 1,278,468 | $ | 2,923,117 |
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Executive | 1996 Stock | 2006 Stock | Executive | 1996 Stock | 2006 Stock | |||||||||||||||||||||||||||
Name | Incentive Plan | Incentive Plan | Incentive Plan | Total | Incentive Plan | Incentive Plan | Incentive Plan | Total | ||||||||||||||||||||||||
David B. Speer | $ | 2,200,000 | $ | 1,675,875 | — | $ | 3,875,875 | $ | 2,200,000 | $ | 4,645,800 | $ | 10,116,982 | $ | 16,962,782 | |||||||||||||||||
Ronald D. Kropp | $ | 525,000 | $ | 174,700 | — | $ | 874,700 | $ | 525,000 | $ | 185,900 | $ | 1,564,638 | $ | 2,275,538 | |||||||||||||||||
Thomas J. Hansen | $ | 1,000,000 | $ | 1,078,425 | — | $ | 2,078,425 | $ | 1,000,000 | $ | 3,039,300 | $ | 3,957,970 | $ | 7,997,270 | |||||||||||||||||
Russell M. Flaum | $ | 783,800 | $ | 1,675,875 | — | $ | 2,459,675 | |||||||||||||||||||||||||
Hugh J. Zentmyer | $ | 751,200 | $ | 1,246,000 | — | $ | 1,997,200 | |||||||||||||||||||||||||
E. Scott Santi | $ | 800,000 | $ | 465,300 | $ | 3,166,382 | $ | 4,431,682 | ||||||||||||||||||||||||
Philip M. Gresh, Jr. | $ | 680,000 | $ | 1,890,800 | $ | 1,726,669 | $ | 4,297,469 |
(c) | (c) | |||||||||||||||||||||||
Number of securities | Number of securities | |||||||||||||||||||||||
(a) | (b) | remaining available for | (a) | remaining available for | ||||||||||||||||||||
Number of securities | Weighted-average | future issuance under | Number of securities | (b) | future issuance under | |||||||||||||||||||
to be issued upon | exercise price of | equity compensation | to be issued upon | Weighted-average | equity compensation | |||||||||||||||||||
exercise of outstanding | outstanding | plans (excluding | exercise of outstanding | exercise price of | plans (excluding | |||||||||||||||||||
options, warrants and | options, warrants | securities reflected in | options, warrants and | outstanding | securities reflected in | |||||||||||||||||||
Plan Category | rights | and rights | column (a)) | rights | options | column (a)) | ||||||||||||||||||
Equity compensation plans approved by security holders | 22,763,257 | $ | 41.66 | 40,542,071 | (1) | 22,475,330 | (1) | $ | 42.42 | 37,196,314 |
(1) |
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receive benefits such as access to business, technical and industry expertise from these memberships that are unrelated to political activity. Due to |
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I. | Introduction |
II. | Definitions |
III. | Standards for Directors |
1. | A director who is an employee, or whose immediate family member is an executive officer, of the Company is not independent until three years after the end of such employment relationship. Employment as an interim Chairman or CEO shall not disqualify a director from being considered independent following that employment. |
2. | A director who receives, or whose immediate family member receives, more than $120,000 during any twelve-month period in direct compensation from the Company, other than director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service), is not independent until three years after he or she ceases to receive more than $120,000 during any twelve-month period in such compensation. Compensation received by a director for former service as an interim Chairman or CEO need not be considered in determining independence under this test. Compensation received by an immediate family member for service as a non-executive employee of the Company need not be considered in determining independence under this test. |
3. | A director who is a current partner or employee of a firm that is the Company’s internal or external auditor, or whose immediate family member1 is a current partner of such a firm, is not independent. A director who is or was, or whose immediate family member is or was, a partner or employee of such a firm and personally worked on the Company’s audit within the last three years is not independent. |
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4. | A director who is employed, or whose immediate family member is employed, as an executive officer of another company where any of the Company’s present executives serve on that company’s compensation committee is not independent until three years after the end of such service or the employment relationship. |
5. | A director who is an executive officer or an employee, or whose immediate family member is an executive officer, of a company that makes payments to, or receives payments from, the Company for property or services in an amount which, in any single fiscal year, exceeds the greater of $1 million, or 2% of such other company’s consolidated gross revenues, is not independent until three years after falling below such |
6. | Stock ownership in the Company by directors is encouraged and the ownership of a significant amount of stock, by itself, does not bar a director from being independent. |
IV. | Standards for Audit Committee Members |
1. | A director who is a member of the Audit Committee may not, other than in his or her capacity as a member of the Audit Committee, the Board of Directors, or any other Board committee, accept directly or indirectly any consulting, advisory, or other compensatory fee from the Company, provided that, unless the rules of the New York Stock Exchange provide otherwise, compensatory fees do not include the receipt of fixed amounts of compensation under a retirement plan (including deferred compensation) for prior service with the Company (provided that such compensation is not contingent in any way on continued service). |
2. | A director, who is a member of the Audit Committee may not, other than in his or her capacity as a member of the Audit Committee, the Board of Directors, or any other Board committee, be an affiliated person of the Company. |
3. | If an Audit Committee member simultaneously serves on the audit committees of more than three public companies, the Board must determine that such simultaneous service would not impair the ability of such member to effectively serve on the Company’s Audit Committee. |
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TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: | KEEP THIS PORTION FOR YOUR RECORDS | |||
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. | DETACH AND RETURN THIS PORTION ONLY |
ILLINOIS TOOL WORKS INC. | |||||||||||||||||||||||||||||||||||||||||||||
vote FOR all | |||||||||||||||||||||||||||||||||||||||||||||
1. | Election of | For | Against | Abstain | |||||||||||||||||||||||||||||||||||||||||
1a. | o | o | o | ||||||||||||||||||||||||||||||||||||||||||
1b. | o | o | o | ||||||||||||||||||||||||||||||||||||||||||
1c. | o | o | o | The Board of Directors recommends you vote FOR the following proposal: | |||||||||||||||||||||||||||||||||||||||||
1d. | |||||||||||||||||||||||||||||||||||||||||||||
Robert C. McCormack | o | o | o | 2. | Ratification of the appointment of Deloitte & Touche LLP as ITW’s independent registered public accounting firm for | o | o | o | |||||||||||||||||||||||||||||||||||||
1e. | Robert S. Morrison | o | o | o | |||||||||||||||||||||||||||||||||||||||||
1f. | James A. Skinner | o | o | o | The Board of Directors recommends you vote AGAINST the following proposal: | ||||||||||||||||||||||||||||||||||||||||
o | o | o | 3. | Stockholder Proposal, if presented at the meeting, | o | o | o | ||||||||||||||||||||||||||||||||||||||
o | o | o | |||||||||||||||||||||||||||||||||||||||||||
| 1i. | Pamela B. Strobel | o | o | o | ||||||||||||||||||||||||||||||||||||||||
For change of address, please check this box and print your new address on the reverse side where indicated. | o | ||||||||||||||||||||||||||||||||||||||||||||
Please sign exactly as your name(s) appear(s) hereon. | |||||||||||||||||||||||||||||||||||||||||||||
Signature [PLEASE SIGN WITHIN BOX] | Date | Signature (Joint Owners) | Date |
Change of Address: | ||
(If you noted a change of address above, please mark corresponding box on the reverse side.) |