o | Fee computed on table below per Exchange ActRules 14a-6(i)(1) and 0-11. |
(1) | Title of each class of securities to which transaction applies: |
(2) | Aggregate number of securities to which transaction applies: |
(3) | Per unit price or other underlying value of transaction computed pursuant to Exchange ActRule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): |
(4) | Proposed maximum aggregate value of transaction: |
(5) | Total fee paid: |
o | Fee paid previously with preliminary materials. |
o | Check box if any part of the fee is offset as provided by Exchange ActRule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
(1) | Amount Previously Paid: |
(2) | Form, Schedule or Registration Statement No.: |
(3) | Filing Party: |
(4) | Date Filed: |
1. | To elect as Directors the 10 nominees named in the proxy statement and recommended by the Board of Directors; | |
2. | To approve an amendment to PolyOne Corporation’s Code of Regulations to allow the |
3. | To ratify the appointment of Ernst & Young LLP as PolyOne Corporation’s independent registered public accounting firm for the fiscal year ending December 31, |
1
2
J. Douglas Campbell Director since 1993 Age — | Retired Chairman and Chief Executive Officer of ArrMaz Custom Chemicals, Inc., a specialty mining and asphalt additives and reagents producer. Mr. Campbell served in this capacity from December 2003 until the company was sold in July 2006. Mr. Campbell served as President and Chief Executive Officer and was a Director of Arcadian Corporation, a nitrogen chemicals and fertilizer manufacturer, from December 1992 until the company was sold in 1997. | |
Dr. Carol A. Cartwright Director since 1994 Age — |
3
Gale Duff-Bloom Director since 1994 Age — | Retired President of Company Communications and Corporate Image of J.C. Penney Company, Inc., a major retailer. Ms. |
3
Richard H. Fearon Director since 2004 Age — 52 | ||
Gordon D. Harnett Director since 1997 Age — | Lead Director of our Board of Directors since July 18, 2007. Retired Chairman, President and Chief Executive Officer of Brush Engineered Materials Inc., an international supplier and producer of high performance engineered materials. Mr. Harnett served in this capacity from 1991 until his retirement in May 2006. Mr. Harnett serves on the Boards of Directors of The Lubrizol Corporation, | |
Richard A. Lorraine Director since 2008 Age — 63 | Retired Senior Vice President and Chief Financial Officer of Eastman Chemical Company, a specialty chemicals company. Mr. Lorraine served in this capacity from 2003 to 2008. Mr. Lorraine also served as Executive Vice President and Chief Financial Officer of Occidental Chemical Company from 1995 to 2003. Mr. Lorraine serves on the Board of Directors of Carus Corporation. | |
Edward J. Mooney Director since 2006 Age — | Retired Chairman and Chief Executive Officer of Nalco Chemical Company, a specialty chemicals company. Mr. Mooney served in this capacity from 1994 to 2000. Mr. Mooney also served as Déléqué Général — North America, of Suez Lyonnaise des Eaux from 2000 to 2001, following its acquisition of Nalco. Mr. Mooney serves on the Boards of Directors of FMC Corporation, FMC Technologies, Inc., Northern Trust Corporation, Cabot Microelectronics Corporation and Commonwealth Edison Company (a wholly-owned subsidiary of Exelon Corporation). | |
Stephen D. Newlin Director since 2006 Age — | Chairman, President and Chief Executive Officer of PolyOne since February 2006. Mr. Newlin served as President — Industrial Sector of Ecolab, Inc., a global developer and marketer of cleaning and sanitizing specialty chemicals, products and services from 2003 to 2006. Mr. Newlin served as President and a director of Nalco Chemical Company, a manufacturer of specialty chemicals, services and systems, from 1998 to 2001 and was Chief Operating Officer and Vice Chairman from 2000 to 2001. Mr. Newlin serves on the Boards of Directors of Black Hills Corporation and The Valspar Corporation. |
4
William H. Powell Director since 2008 Age — 63 | Retired Chairman and Chief Executive Officer of National Starch and Chemical Company, a specialty chemicals company. Mr. Powell served in this capacity from 1999 until his retirement in 2006. Mr. Powell serves on the Boards of Directors of Arch Chemicals, Inc. and Granite Construction Incorporated. | |
Farah M. Walters Director since 1998 Age — | President and Chief Executive Officer of QualHealth, LLC, a healthcare consulting firm, |
4
5
5
Compensation & | Environmental, | |||||||||||||||||||
Governance | Health & | Financial | ||||||||||||||||||
Director | Audit Committee | Committee | Safety Committee | Policy Committee | ||||||||||||||||
Mr. Campbell | X | X | X | * | ||||||||||||||||
Dr. Cartwright | X | X | ||||||||||||||||||
Ms. Duff-Bloom | �� | X | X | X | ||||||||||||||||
Mr. Fearon | X | * | X | |||||||||||||||||
Mr. Garda | X | X | ||||||||||||||||||
Mr. Harnett | X | X | * | |||||||||||||||||
Mr. Mooney | X | X | * | X | ||||||||||||||||
Mr. Newlin | X | X | ||||||||||||||||||
Ms. Walters | X | X | ||||||||||||||||||
Number of Meetings in 2007 | 8 | 7 | 2 | 4 | ||||||||||||||||
6
Compensation & | Environmental, | |||||||||||||||||||
Governance | Health & | Financial | ||||||||||||||||||
Director | Audit Committee | Committee | Safety Committee | Policy Committee | ||||||||||||||||
Mr. Campbell | X | X | X | * | ||||||||||||||||
Dr. Cartwright | X | X | ||||||||||||||||||
Ms. Duff-Bloom | X | X | X | |||||||||||||||||
Mr. Fearon | X | * | X | |||||||||||||||||
Mr. Garda | X | X | ||||||||||||||||||
Mr. Harnett | X | X | * | |||||||||||||||||
Mr. Lorraine | X | X | ||||||||||||||||||
Mr. Mooney | X | X | * | X | ||||||||||||||||
Mr. Newlin | X | X | ||||||||||||||||||
Mr. Powell | X | X | X | |||||||||||||||||
Ms. Walters | X | X | ||||||||||||||||||
Number of Meetings in 2008 | 8 | 7 | 2 | 5 | ||||||||||||||||
6
7
• | Business or professional experience; | |
• | Knowledge and skill in certain specialty areas such as accounting and finance, international markets, physical sciences and technology or the polymer or chemical industry; |
7
• | Personal characteristics such as ethical standards, integrity, judgment, leadership and the ability to devote sufficient time to our affairs; | |
• | Substantial accomplishments with demonstrated leadership capabilities; | |
• | Freedom from outside interests that conflict with our best interests; | |
• | The diversity of backgrounds and experience each member will bring to the Board of Directors; and | |
• | Our needs from time to time. |
8
8
9
9
10
Fees Earned | Fees Earned | |||||||||||||||||||||||||||||||||||||||
or Paid | Stock | Option | or Paid | Stock | Option | |||||||||||||||||||||||||||||||||||
in Cash(2) | Awards(3)(4) | Awards(4) | Total | in Cash(1) | Awards(2)(3) | Awards(3) | Total | |||||||||||||||||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||||
J.D. Campbell | 59,000 | 50,000 | — | 109,000 | 65,500 | 68,750 | — | 134,250 | ||||||||||||||||||||||||||||||||
C.A. Cartwright | 54,000 | 50,000 | — | 104,000 | 58,500 | 68,750 | — | 127,250 | ||||||||||||||||||||||||||||||||
G. Duff-Bloom | 54,000 | 50,000 | — | 104,000 | 60,500 | 68,750 | — | 129,250 | ||||||||||||||||||||||||||||||||
W.R. Embry(1) | 22,794 | 17,995 | — | 40,789 | ||||||||||||||||||||||||||||||||||||
R.H. Fearon | 59,167 | 50,000 | — | 109,167 | 70,500 | 68,750 | — | 139,250 | ||||||||||||||||||||||||||||||||
R.A. Garda | 54,000 | 50,000 | — | 104,000 | 60,500 | 68,750 | — | 129,250 | ||||||||||||||||||||||||||||||||
G.D. Harnett | 64,000 | 50,000 | — | 114,000 | 70,500 | 68,750 | — | 139,250 | ||||||||||||||||||||||||||||||||
R.A. Lorraine | 16,000 | 18,750 | — | 34,750 | ||||||||||||||||||||||||||||||||||||
E.J. Mooney | 57,333 | 50,000 | — | 107,333 | 64,500 | 68,750 | — | 133,250 | ||||||||||||||||||||||||||||||||
W.H. Powell | 16,000 | 18,750 | — | 34,750 | ||||||||||||||||||||||||||||||||||||
F.M. Walters | 59,833 | 50,000 | — | 109,833 | 60,500 | 68,750 | — | 129,250 | ||||||||||||||||||||||||||||||||
(1) | ||
Non-employee Directors may defer payment of all or a portion of their cash compensation as a Director | ||
10
$2.980. | ||
(3) | In |
Option Awards | Stock Awards | Option Awards | Stock Awards | |||||||||||||||||
Number of | Number of | Number of | Number of | |||||||||||||||||
Securities Underlying | Deferred | Securities Underlying | Deferred | |||||||||||||||||
Unexercised Options | Shares | Unexercised Options | Shares | |||||||||||||||||
Name | (#) | (#) | (#) | (#) | ||||||||||||||||
J.D. Campbell | 46,000 | 121,132 | 44,000 | 148,412 | ||||||||||||||||
C.A. Cartwright | 39,000 | 49,011 | 39,000 | 49,011 | ||||||||||||||||
G. Duff-Bloom | 46,000 | 93,373 | 44,000 | 110,230 | ||||||||||||||||
W.R. Embry | 39,000 | 0 | ||||||||||||||||||
R.H. Fearon | 15,000 | 0 | 15,000 | 0 | ||||||||||||||||
R.A. Garda | 61,500 | 41,870 | 39,000 | 48,159 | ||||||||||||||||
G.D. Harnett | 39,000 | 96,441 | 39,000 | 110,167 | ||||||||||||||||
R.A. Lorraine | 0 | 6,291 | ||||||||||||||||||
E.J. Mooney | 0 | 27,668 | 0 | 54,754 | ||||||||||||||||
W.H. Powell | 0 | 11,660 | ||||||||||||||||||
F.M. Walters | 54,000 | 92,024 | 44,000 | 57,408 | ||||||||||||||||
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Number of | Right to | Total | Number of | Right to | Total | ||||||||||||||||||||||
Shares | Acquire | Beneficial | Shares | Acquire | Beneficial | ||||||||||||||||||||||
Name | Owned(1) | Shares(3) | Ownership | Owned(1) | Shares(3) | Ownership | |||||||||||||||||||||
J. Douglas Campbell | 150,468 | (2) | 44,000 | 194,468 | |||||||||||||||||||||||
J. Douglas Campbell | 123,188 | (2) | 46,000 | 169,188 | |||||||||||||||||||||||
Dr. Carol A. Cartwright | 94,610 | (2) | 39,000 | 133,610 | |||||||||||||||||||||||
Carol A. Cartwright | 108,336 | (2) | 39,000 | 147,336 | |||||||||||||||||||||||
Gale Duff-Bloom | 93,871 | (2) | 46,000 | 139,871 | 110,728 | (2) | 44,000 | 154,728 | |||||||||||||||||||
Richard H. Fearon | 20,763 | (2) | 15,000 | 35,763 | 34,489 | 15,000 | 49,489 | ||||||||||||||||||||
Robert A. Garda | 83,090 | (2) | 61,500 | 144,590 | 103,105 | (2) | 39,000 | 142,105 | |||||||||||||||||||
Gordon D. Harnett | 113,252 | (2) | 39,000 | 152,252 | 126,978 | (2) | 39,000 | 165,978 | |||||||||||||||||||
Richard A. Lorraine | 6,291 | (2) | 0 | 6,291 | |||||||||||||||||||||||
Edward J. Mooney | 27,668 | (2) | 0 | 27,668 | 254,754 | (2) | 0 | 254,754 | |||||||||||||||||||
William H. Powell | 21,660 | (2) | 0 | 21,660 | |||||||||||||||||||||||
Farah M. Walters | 93,080 | (2) | 54,000 | 147,080 | 119,331 | (2) | 44,000 | 163,331 | |||||||||||||||||||
Stephen D. Newlin | 235,000 | 0 | 235,000 | 169,600 | 0 | 169,600 | |||||||||||||||||||||
Robert M. Patterson | 100,000 | 0 | 100,000 | ||||||||||||||||||||||||
W. David Wilson | 154,155 | 215,600 | 369,755 | 159,377 | 215,600 | 374,977 | |||||||||||||||||||||
Kenneth M. Smith | 74,613 | 131,500 | 206,113 | ||||||||||||||||||||||||
Michael L. Rademacher | 65,909 | 151,024 | 216,933 | ||||||||||||||||||||||||
Bernard Baert | 35,766 | 14,042 | 49,808 | 35,766 | 6,969 | 42,735 | |||||||||||||||||||||
Michael E. Kahler | 40,586 | 0 | 40,586 | ||||||||||||||||||||||||
Michael L. Rademacher | 65,067 | 151,024 | 216,091 | ||||||||||||||||||||||||
16 Directors and executive officers as a group | 1,415,324 | 832,038 | 2,247,362 | ||||||||||||||||||||||||
19 Directors and executive officers as a group | 1,886,344 | 788,465 | 2,674,809 | ||||||||||||||||||||||||
(1) | Except as otherwise stated in the following notes, beneficial ownership of the shares held by each individual consists of sole voting power and sole investment power, or of voting power and investment power that is shared with the spouse or other family member of the individual. It includes an approximate number of shares credited to the named executives’ accounts in our Retirement Savings Plan, a tax-qualified defined contribution plan. The number of common shares allocated to these individuals is provided by the savings plan administrator in a statement for the period ending December 31, | |
(2) | With respect to the Directors, beneficial ownership includes shares held under the Deferred Compensation Plan for Non-Employee Directors as follows: J.D. Campbell, |
12
(3) | Includes shares the individuals have a right to acquire on or before May |
12
Number of | % of | |||||||
Name and Address | Shares | Shares | ||||||
Dimensional Fund Advisors LP | 7,337,768 | (1) | 7.9 | % | ||||
1299 Ocean Avenue | ||||||||
Santa Monica, California 90401 | ||||||||
Barclays Global Investors, NA | 6,635,948 | (2) | 7.1 | % | ||||
45 Fremont Street | ||||||||
San Francisco, California 94105 | ||||||||
State of Wisconsin Investment Board | 6,100,700 | (3) | 6.5 | % | ||||
P.O. Box 7842 | ||||||||
Madison, Wisconsin 53707 | ||||||||
Barrow, Hanley, Mewhinney & Strauss, Inc | 5,926,420 | (4) | 6.4 | % | ||||
2200 Ross Avenue, 31st Floor | ||||||||
Dallas, Texas75201-2761 | ||||||||
Jeffrey L. Gendell | 5,453,293 | (5) | 5.8 | % | ||||
55 Railroad Avenue | ||||||||
Greenwich, Connecticut 06830 | ||||||||
New York Life Trust Company, Trustee | 4,952,764 | (6) | 5.3 | % | ||||
51 Madison Avenue | ||||||||
New York, New York 10010 |
Number of | % of | |||||
Name and Address | Shares | Shares | ||||
Fine Capital Partners, L.P. | 7,795,000(1) | 8.4% | ||||
590 Madison Avenue, 5th Floor New York, New York 10022 | ||||||
Dimensional Fund Advisors LP | 7,756,699(2) | 8.4% | ||||
1299 Ocean Avenue Santa Monica, California 90401 | ||||||
Barrow, Hanley, Mewhinney & Strauss, Inc | 7,104,210(3) | 7.7% | ||||
2200 Ross Avenue, 31st Floor Dallas, Texas75201-2761 | ||||||
Barclays Global Investors, NA | 7,051,825(4) | 7.6% | ||||
45 Fremont Street San Francisco, California 94105 | ||||||
New York Life Trust Company, Trustee | 5,534,987(5) | 6.0% | ||||
51 Madison Avenue New York, New York 10010 | ||||||
(1) | As of March 6, 2009, based upon information contained in a Schedule 13D/A filed with the Securities and Exchange Commission. FCP Capital Partners, L.P. and its affiliates have sole voting power and sole dispositive power with respect to all of these shares. | |
(2) | As of February | |
As of February | ||
(4) | As of February 5, 2009, based upon information contained in a Schedule 13G filed with the Securities and Exchange Commission. Barclays Global Investors, NA, as an investment advisor and reporting on behalf of a group of affiliate entities, has sole voting power with respect to | |
As of February 13, | ||
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• | Stephen D. Newlin — Chairman, President and Chief Executive Officer | |
• | ||
• | ||
• | ||
• | Michael L. Rademacher — Senior Vice President | |
• | Bernard Baert — Senior Vice President and General Manager, Colors and Engineered Materials — Europe and Asia |
15
Compensation | ||||||
Element | Definition | Rationale | ||||
Base Salary | • Fixed compensation payable bi-weekly | • Intended to pay for completingday-to-day job responsibilities assigned to the position | ||||
Annual Incentive Plan | • Variable, cash compensation that is earned when pre-established annual performance goals are achieved | • Builds accountability for important annual financial goals • Limits fixed expenses; payment is required only upon achievement of specified goals | ||||
Long-Term Incentive Plan Performance Units | • Variable, cash compensation that is earned when pre-established three-year financial goals are achieved | • Emphasizes achievement of long-term strategic goals and objectives • Limits fixed expenses; payment is required only upon achievement of specified goals • Avoids stock dilution through cash awards • Multi-year incentive is common market practice | ||||
Rights | • Variable compensation that • Paid in PolyOne common shares | • • | ||||
• Increases share ownership | ||||||
• Limits fixed expenses | ||||||
• Vesting conditions require executive to remain with PolyOne for the vesting period | ||||||
• Multi-year incentive is a common market practice | ||||||
Restricted Stock Units | • Equity compensation with three-year cliff vesting • Paid in PolyOne common shares | • Increases share ownership • Limits fixed expenses; payment is not required if executive terminates before vesting • Vesting conditions require executive to remain with PolyOne for the vesting period • Full-value grant is a common market practice | ||||
Retirement Plans U.S. Defined Contribution Plans | • Qualified 401(k) defined contribution plan • Nonqualified excess 401(k) defined contribution plan | • The qualified defined contribution plan is a standard tax-qualified benefit offered to all employees subject to limitations on compensation and benefits under the Internal Revenue Code | ||||
16
Compensation | |||||||||
Element | Definition | Rationale | |||||||
• Restores benefits that are limited by the Internal Revenue Code in the qualified plan for most highly-paid executives | |||||||||
Belgium Defined Contribution Plan | • Tax-efficient defined contribution plan | • Mr. Baert is a participant in a standard tax-efficient defined contribution plan provided to most Belgium employees | |||||||
Defined Benefit Plans (These plans have been closed to new participants since the formation of | • Qualified defined benefit pension plan | • | |||||||
• Nonqualified, excess defined benefit plan | • Restores benefits that are limited by the Internal Revenue Code in the qualified plan and applies to all eligible plan participants | ||||||||
Supplemental Retirement Benefit for Mr. Newlin | • Non-qualified annual supplemental retirement payments, upon a “Qualifying Separation from Service,” payable in the form of a 15-year certain and continuous life annuity | • This non-qualified retirement benefit is consistent with benefits offered at peer companies • Vesting conditions require executive to remain with PolyOne until the vesting conditions are satisfied | |||||||
Post-Retirement Medical | • Subsidized retiree medical coverage similar to coverage provided to active employees available to certain heritage employees (This plan has been closed to new participants since the formation of PolyOne) | • | |||||||
• Retiree medical coverage at full cost to the retiree from ages 55 to 65 that is available to PolyOne employees | • Messrs. Newlin, Patterson and Rademacher are eligible for participation in the post-retirement medical plan offered to U.S. based PolyOne employees | ||||||||
• Mr. Baert is not eligible to participate in a company provided retiree medical plan | |||||||||
Perquisites | • Car allowance • Relocation benefits • Executive • Financial planning and tax preparation; excess liability insurance | • Standard market practice • Relocation benefits assist in attracting new executive talent • Executive physicals help to ensure continuity of our management team • Other perquisites are modest and are typical for executives at comparable companies | |||||||
17
• | Base salaries for Named Executive Officers, as well as other officers of the Company, will be frozen in 2009. | |
• | The value of the long-term incentive grants in 2009 will be 38% below the target market opportunity for the Named Executive Officers and, therefore, will be below the value of last year’s grant. | |
• | The change in long-term incentive opportunity results in a decrease in total direct compensation for Named Executive Officers in the range of 14% to 22% (with the CEO’s compensation being decreased by the 22%). | |
• | The long-term incentive will include a grant of Performance Units with a one-year performance cycle payable after three years, to further emphasize our focus on cash management for 2009. | |
• | Achievement of threshold performance under the performance units will result in a payout of 30% of the targeted award (instead of 50%), while maintaining our standard threshold level of performance. | |
• | Performance measures will be added as a condition of vesting under the stock-settled stock appreciation rights and performance shares. | |
• | Achievement of threshold performance under the Annual Incentive Plan will result in a payout of 30% of the targeted award (instead of 50%), while maintaining our standard threshold level of performance. | |
• | The Annual Incentive Plan performance measures for 2009 will include a greater emphasis on working capital as a percentage of sales to promote cash management. |
18
• | We |
17
performance units in order to avoid the dilution associated withshare-based awards and to reward executives for achieving growth in our |
• | We | |
• | We allocated the remaining 30% of the assigned long-term incentive target opportunity in the form of RSUs. We decided to grant RSUs in addition to performance units and SARs to provide an award that is consistent with market practice and that conserves shares under our equity plan, promotes share ownership and enhances our retention of executives. | |
• | We assigned a value to a single performance unit and |
Proportionate Size of Primary Elements of Compensation | Proportionate Size of Primary Elements of Compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Element | Newlin | Wilson | Baert | Kahler | Rademacher | Newlin | Patterson | Wilson | Smith | Rademacher | Baert | ||||||||||||||||||||||||||||||||||||||||||||
Base Salary | 24 | % | 37 | % | 45 | % | 42 | % | 42 | % | 20 | % | 67 | % | 36 | % | 43 | % | 43 | % | 45 | % | |||||||||||||||||||||||||||||||||
Annual Incentive Opportunity | 24 | % | 19 | % | 23 | % | 21 | % | 21 | % | 20 | % | 33 | % | 18 | % | 22 | % | 21 | % | 22 | % | |||||||||||||||||||||||||||||||||
Long-Term Incentive Opportunity* | 52 | % | 44 | % | 32 | % | 37 | % | 37 | % | 60 | % | ** | 46 | % | 35 | % | 36 | % | 33 | % | ||||||||||||||||||||||||||||||||||
* | Long-term incentive relating to the performance units for the | |
** | Mr. Patterson was not a PolyOne employee at the time of the 2008 long-term incentive award. In lieu thereof, he received a grant of 60,000 SARs and 40,000 RSUs at the time of his employment. |
19
Albemarle Corporation | Eastman Chemical Company | Hercules | ||
Arch Chemicals, Inc. | The Lubrizol Corporation | |||
A. Schulman, Inc. | RPM International Inc. | |||
Cabot Corporation | Spartech Corporation | |||
Chemtura Corporation | The Valspar Corporation | |||
Cytec Industries Inc. |
18
20
Measure | Target Goal | Actual Result | % of Target | ||||||||||
Company Operating Income | $ | 71.9 mm | $ | 68.2 mm | 94.9% | ||||||||
Company-Controlled Cash Flow | 38.6 mm | 28.0 mm | 72.5% | ||||||||||
BU Operating Income (Rademacher) | 24.9 mm | 28.1 mm | 112.9% | ||||||||||
BU Operating Income (Baert) | 33.4 mm | 20.4 mm | 61.1% | ||||||||||
• | Operating income was defined as operating income less Sunbelt operating income and less any specified special items. | |
• | Company-controlled cash flow was defined as operating income less Sunbelt operating income plus depreciation and amortization plus/minus changes in average working capital less capital expenditures, interest and other expenses. |
19
Executive | Target Award | Earned Award | % Attainment | ||||||||||||
S.D. Newlin | $ | 831,731 | $ | 700,650 | 84.2% | ||||||||||
R.M. Patterson | 127,692 | (1) | 107,568 | 84.2% | |||||||||||
W.D. Wilson | 131,619 | (1) | 110,876 | 84.2% | |||||||||||
K.M. Smith | 166,654 | 140,389 | 84.2% | ||||||||||||
M.L. Rademacher | 158,654 | 204,663 | 129.0% | ||||||||||||
B. Baert(2) | 207,721 | 63,064 | 30.4% | ||||||||||||
(1) | For the portion of the year the Named Executive Officer was with PolyOne. |
21
(2) | Mr. Baert’s compensation is based in Euros and has been converted to dollars using the conversion rate of €1.00 = $1.4096, which is the conversion rate used in our Annual Report onForm 10-K for the fiscal year ended December 31, 2008. |
(1) | Awards Granted in |
22
• | Cash-Settled Performance Units |
20
• | Stock-Settled SARs |
• | RSUs |
(2) | Awards Granted in Prior Years |
2123
Goals | ||||||||||||||||
Measure | Threshold | Target | Maximum | % Attainment | ||||||||||||
Cash Flow | $225 mm | $280 mm | $400 mm | 0 | %(1) | |||||||||||
Debt to EBITDA | 4 quarters 3.00 | 6 quarters 3.00 | 6 quarters 3.00 and 4 of 6 | 100 | % | |||||||||||
quarters 2.50 | ||||||||||||||||
Return on Invested Capital | 10% | 14% | 17% | 0 | % | |||||||||||
(1) | Management recommended, and the Committee agreed, that the proceeds from the sale of our interest in Oxy Vinyls in 2007 would not be included in the cash flow attainment. As a result, threshold performance was not attained. |
(3) | Awards Granted in |
24
• | 65% — cash-settled performance units | |
• | 14% — performance-vested, stock-settled SARs | |
• | 21% — performance shares |
• | The performance units are earned based on achievement of goals relating to | |
• | The SARs granted | |
• | Each |
25
22
26
23
27
24
28
25
29
2630
2731
Element | Newlin | Wilson | Baert | Kahler | Rademacher | Newlin | Wilson | Patterson | Smith | Rademacher | Baert | ||||||||||||||||||||||||||||||||||||||||||||||||
Share Ownership Target (in shares) | 315,000 | 90,000 | 73,500 | 75,000 | 64,000 | 324,000 | * | 105,000 | 85,000 | 56,000 | 63,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Share Ownership as of 3/17/08 | 349,700 | 182,826 | 48,366 | 53,186 | 77,667 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Share Ownership as of 3/16/09 | 284,300 | * | 140,000 | 94,265 | 78,509 | 48,366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Attainment Status | 111.0 | % | 203.1 | % | 65.8 | % | 70.9 | % | 121.4 | % | 87.7% | * | 133.3% | 110.9% | 140.2% | 76.8% | |||||||||||||||||||||||||||||||||||||||||||
2832
Change in | ||||||||||||||||||||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||||||||||||||||||||
Non- | Value and | |||||||||||||||||||||||||||||||||||||||||||||
Equity | Nonqualified | |||||||||||||||||||||||||||||||||||||||||||||
Option/ | Incentive | Deferred | ||||||||||||||||||||||||||||||||||||||||||||
Stock | SAR | Plan | Compensation | All Other | ||||||||||||||||||||||||||||||||||||||||||
Name and | Salary | Bonus(3) | Awards | Awards(6) | Compensation(7) | Earnings(8) | Compensation | Total | ||||||||||||||||||||||||||||||||||||||
Principal Position | Year | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||||||
Stephen D. Newlin, Chairman, President | 2007 | $ | 741,635 | $ | 0 | $ | 589,333 | (4) | $ | 778,565 | $ | 1,482,066 | $ | 0 | $ | 208,069 | (9) | $ | 3,799,668 | |||||||||||||||||||||||||||
and Chief Executive Officer(1) | 2006 | 589,615 | 600,000 | 505,374 | 558,936 | 959,700 | 0 | 110,196 | (10) | 3,323,821 | (10) | |||||||||||||||||||||||||||||||||||
W. David Wilson, Senior Vice President | 2007 | 363,981 | 0 | 241 | (5) | 218,060 | 167,595 | 168,279 | 94,846 | (11) | 1,013,002 | |||||||||||||||||||||||||||||||||||
and Chief Financial Officer | 2006 | 354,058 | 50,000 | 75,561 | 158,724 | 242,707 | 0 | 81,711 | 962,761 | |||||||||||||||||||||||||||||||||||||
Bernard Baert, Senior Vice | 2007 | 421,668 | 0 | 169 | (5) | 144,609 | 166,263 | 0 | 86,727 | (12) | 819,436 | |||||||||||||||||||||||||||||||||||
President & General Manager, Colors and Engineered Materials, Europe and Asia(2) | 2006 | 349,999 | 0 | 53,125 | 105,333 | 219,576 | 0 | 70,030 | (13) | 798,063 | (13) | |||||||||||||||||||||||||||||||||||
Michael E. Kahler, Senior Vice President, Commercial Development | 2007 | 285,962 | 0 | 0 | 196,144 | 131,671 | 0 | 128,390 | (14) | 742,167 | ||||||||||||||||||||||||||||||||||||
Michael L. Rademacher, Senior Vice President & General Manager, Distribution | 2007 | 307,577 | 0 | 160 | (5) | 138,141 | 210,229 | 0 | 64,508 | (15) | 720,615 | |||||||||||||||||||||||||||||||||||
Change in | |||||||||||||||||||||||||||||||||||||||||||||
Pension | |||||||||||||||||||||||||||||||||||||||||||||
Non- | Value and | ||||||||||||||||||||||||||||||||||||||||||||
Equity | Nonqualified | ||||||||||||||||||||||||||||||||||||||||||||
Option/ | Incentive | Deferred | |||||||||||||||||||||||||||||||||||||||||||
Stock | SAR | Plan | Compensation | All Other | |||||||||||||||||||||||||||||||||||||||||
Name and | Salary | Bonus | Awards(4) | Awards(5) | Compensation(6) | Earnings | Compensation | Total | |||||||||||||||||||||||||||||||||||||
Principal Position | Year | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||||||||
Stephen D. Newlin, | 2008 | $ | 831,731 | $ | 0 | �� | $ | 797,592 | $ | 331,625 | $ | 1,044,150 | $ | 4,341,255 | (7) | $ | 135,106 | (9) | $ | 7,481,459 | |||||||||||||||||||||||||
Chairman, President and | 2007 | 741,635 | 0 | 589,333 | 778,565 | 1,482,066 | — | 208,069 | 3,799,668 | ||||||||||||||||||||||||||||||||||||
Chief Executive Officer | 2006 | 589,615 | 600,000 | 505,374 | 558,936 | 959,700 | — | 110,196 | 3,323,821 | ||||||||||||||||||||||||||||||||||||
Robert M. Patterson, Senior Vice President and | 2008 | 255,385 | 0 | 64,526 | 33,775 | 107,568 | — | 85,109 | (10) | 546,363 | |||||||||||||||||||||||||||||||||||
Chief Financial Officer(1) | |||||||||||||||||||||||||||||||||||||||||||||
W. David Wilson, Former Senior Vice | 2008 | 325,881 | 0 | 4,125 | 68,650 | 199,420 | 179,740 | (8) | 861,135 | (11) | 1,638,951 | ||||||||||||||||||||||||||||||||||
President and Chief | 2007 | 363,981 | 0 | 241 | 218,060 | 167,595 | 168,279 | 94,846 | 1,013,002 | ||||||||||||||||||||||||||||||||||||
Financial Officer(2) | 2006 | 354,058 | 50,000 | 75,561 | 158,724 | 242,707 | 0 | 81,711 | 962,761 | ||||||||||||||||||||||||||||||||||||
Kenneth M. Smith, Senior Vice President, | 2008 | 333,308 | 0 | 23,232 | 48,562 | 210,289 | 156,297 | (8) | 69,065 | (12) | 840,753 | ||||||||||||||||||||||||||||||||||
Chief Information and | 2007 | 323,712 | 0 | 169 | 145,647 | 149,053 | 189,074 | 76,485 | 884,140 | ||||||||||||||||||||||||||||||||||||
Human Resources Officer | 2006 | 313,481 | 50,000 | 52,914 | 112,084 | 214,891 | 0 | 59,109 | 802,479 | ||||||||||||||||||||||||||||||||||||
Michael L. Rademacher, Senior Vice President and | 2008 | 317,308 | 0 | 23,232 | 47,063 | 270,930 | — | 64,367 | (13) | 722,900 | |||||||||||||||||||||||||||||||||||
General Manager, Distribution | 2007 | 307,577 | 0 | 160 | 138,141 | 210,229 | — | 64,508 | 720,615 | ||||||||||||||||||||||||||||||||||||
Bernard Baert, Senior Vice President and | 2008 | 415,441 | 0 | 23,232 | 30,974 | 121,564 | — | 84,388 | (14) | 675,599 | |||||||||||||||||||||||||||||||||||
General Manager, Color and Engineered Material — | 2007 | 421,668 | 0 | 169 | 144,609 | 166,263 | — | 86,727 | 819,436 | ||||||||||||||||||||||||||||||||||||
Europe and Asia(3) | 2006 | 349,999 | 0 | 53,125 | 105,333 | 219,576 | — | 70,030 | 798,063 | ||||||||||||||||||||||||||||||||||||
(1) | Mr. | |
(2) | Mr. Wilson was replaced as Chief Financial Officer on May 12, 2008 and continued serving as Senior Vice President until his departure from the Company on September 9, 2008. The numbers in the table reflect the compensation earned during the part of the year he was with the Company. | |
(3) | Mr. Baert’s compensation is based in Euros. The conversion rate used for purposes of converting the Euros earned by Mr. Baert into dollars for purposes of this table was €1.00 = | |
(4) | This |
33
reflected in the table for |
29
This column includes the grants of | ||
This column reflects amounts earned by the Named Executive Officers under the Annual | ||
(7) | Mr. Newlin | |
(8) | Among the Named Executive Officers, | |
(9) | Amounts under “All Other Compensation” for Mr. Newlin include taxgross-ups on personal benefits | |
(10) | ||
Amounts under “All Other Compensation” for Mr. |
34
2008, reflected in the table, with the following incremental costs: |
30
Amounts under “All Other Compensation” for Mr. | ||
Amounts under “All Other Compensation” for Mr. | ||
(13) | Amounts under “All Other Compensation” for Mr. Rademacher include taxgross-ups on personal benefits in the amount of $4,432, PolyOne’s cash contributions to our Qualified Savings Plan in the amount of $14,950, PolyOne’s cash contributions under our non-qualified retirement plan providing for benefits in excess of the amounts permitted to be contributed under the Qualified Savings Plan in the amount of $25,040 and excess liability umbrella insurance coverage in the amount of $685. Mr. Rademacher also received perquisites in 2008, reflected in the table, with the following incremental costs: car allowance ($12,000), financial planning and tax preparation expenses ($5,567), and an executive physical ($1,693). | |
(14) | Amounts under “All Other Compensation” for Mr. Baert include PolyOne’s cash contributions to atax-efficient savings plan, generally provided to all Belgium employees, in the amount of $52,336 and excess liability umbrella insurance coverage in the amount of $685. Mr. Baert also received perquisites in 2008, reflected in the table, with the following incremental costs: company provided automobile ($25,512), meal vouchers ($1,606) and customer entertainment allowance ($4,249). |
3135
Estimated Future Payouts Under | Estimated Future Payouts Under | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Equity Incentive Plan Awards(1) | Equity Incentive Plan Awards(3) | Estimated Future Payouts Under | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All Other | Non-Equity Incentive Plan Awards(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock | Grant Date | All Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Awards: | Fair | Stock Awards: | All Other Options | Grant Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Exercise or Base | Value of Stock | Number of | Awards: Number | Exercise or | Closing | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of Shares | Price of | and | Shares of | of Securities | Base Price | Market | of Stock and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of Stock or | Option /SAR | Closing Market | Option/SAR | Stock or | Underlying | of Option | Price on | Option/ SAR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Threshold(2) | Target | Maximum | Threshold | Target | Maximum | Units | Awards(4) | Price on | Awards(5) | Grant | Threshold | Target | Maximum | Units(4) | Options(5) | Awards | Grant | Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Grant Date | ($) | ($) | ($) | (#) | (#) | (#) | (#) | ($/Sh) | Grant Date | ($) | Date | ($)(3) | ($) | ($) | (#) | (#) | ($/Sh)(6) | Date | ($)(7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
S.D. Newlin | * | $ | 370,818 | $ | 741,635 | $ | 1,483,270 | (1 | ) | 415,866 | 831,731 | 1,663,462 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 522,550 | 1,045,100 | 2,090,200 | 3/6/2008 | 516,000 | 1,032,000 | 2,064,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 308,400 | $ | 6.585 | $ | 6.48 | $ | 839,876 | 3/6/2008 | 286,800 | 6.765 | 6.67 | 648,168 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/6/2008 | 114,700 | 771,931 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R.M. Patterson | (1 | ) | 63,846 | 127,692 | 255,385 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5/15/2008 | 60,000 | 7.72 | 7.72 | 160,800 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5/15/2008 | 40,000 | 307,200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
W.D. Wilson | * | 90,995 | 181,990 | 363,981 | (1 | ) | 65,810 | 131,619 | 263,238 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/6/2008 | 87,850 | 175,700 | 351,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/6/2008 | 32,600 | 6.765 | 6.67 | 73,676 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/6/2008 | 13,100 | 88,163 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
K.M. Smith | (1 | ) | 83,327 | 166,654 | 333,308 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/6/2008 | 58,700 | 117,400 | 234,800 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/6/2008 | 31,200 | 6.765 | 6.67 | 70,512 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/6/2008 | 12,600 | 84,798 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
M.L. Rademacher | (1 | ) | 79,327 | 158,654 | 317,308 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/6/2008 | 55,800 | 111,600 | 223,200 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 149,400 | 298,800 | 597,609 | 3/6/2008 | 31,200 | 6.765 | 6.67 | 70,512 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 88,200 | 6.585 | 6.48 | 240,198 | 3/6/2008 | 12,600 | 84,798 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B. Baert | * | 105,417 | 210,834 | 421,668 | (1 | ) | 103,861 | 207,721 | 415,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 89,850 | 179,700 | 359,400 | 3/6/2008 | 76,350 | 152,700 | 305,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 53,100 | 6.585 | 6.48 | 144,609 | 3/6/2008 | 31,200 | 6.765 | 6.67 | 70,512 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
M.E. Kahler | * | 71,491 | 142,981 | 285,962 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/6/2008 | 12,600 | 84,798 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 85,950 | 171,900 | 343,800 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 50,700 | 6.585 | 6.48 | 138,073 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
M.L. Rademacher | * | 76,894 | 153,788 | 307,577 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 94,050 | 188,100 | 376,200 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/8/2007 | 55,500 | 6.585 | 6.48 | 151,145 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
There is no Grant Date for these awards. This row relates to awards made under our cash-based Annual Plan. | ||
The first row of this column for each Named Executive Officer represents the annual cash incentive opportunity for the Named Executive Officers under the Annual Plan. The actual amount earned for |
36
Performance Incentive | ||
Threshold refers to the minimum amount payable upon reaching the threshold level of performance. If threshold performance is not attained, the participant will receive $0 for this award. | ||
The numbers in this column represent stock-settled RSUs granted to the Named Executive Officers under our 2005 and 2008 Equity and Performance Incentive Plans, which vest on the third anniversary of the date of grant. | ||
(5) | The numbers in this column represent stock-settled SARs granted to the Named Executive Officers under our 2005 and 2008 Equity and Performance Incentive | |
In setting the base price of SARs, we have followed the practice of using the average of the high and low sales price of our common shares on the trading day immediately before the day the award was approved by the Committee. This practice is in compliance with our 2005 Equity and Performance Incentive Plan. The award of stock-settled SARs that was granted on March |
32
priced using the average of the high and low sales price on the trading day immediately before the date of grant ($ | ||
This represents the grant date fair value of each equity-based award, computed in accordance with SFAS 123(R). |
37
3338
Option/SAR Awards | Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity | ||||||||||||||||||||||||||||||||||||||||||||
Incentive | Incentive | ||||||||||||||||||||||||||||||||||||||||||||
Plan | Plan | ||||||||||||||||||||||||||||||||||||||||||||
Equity | Awards: | Awards: | |||||||||||||||||||||||||||||||||||||||||||
Incentive Plan | Number of | Market or | |||||||||||||||||||||||||||||||||||||||||||
Awards: | Number | Market | Unearned | Payout Value | |||||||||||||||||||||||||||||||||||||||||
Number of | Number of | of Shares | Value of | Shares, | of Unearned | ||||||||||||||||||||||||||||||||||||||||
Securities | Number of | Securities | or Units | Shares or | Units or | Shares, Units | |||||||||||||||||||||||||||||||||||||||
Underlying | Securities | Underlying | Option/ | of Stock | Units of | Other | or Other | ||||||||||||||||||||||||||||||||||||||
Unexercised | Underlying | Unexercised | SARs | Option/ | That | Stock That | Rights That | Rights That | |||||||||||||||||||||||||||||||||||||
Options/SARs | Unexercised | Unearned | Exercise | SARs | Have Not | Have Not | Have Not | Have Not | |||||||||||||||||||||||||||||||||||||
(#) | Options/SARs | Options/SARs | Price | Expiration | Vested | Vested | Vested | Vested | |||||||||||||||||||||||||||||||||||||
Name | Exercisable(1) | (#) Unexercisable | (#) | ($) | Date | (#) | ($) | (#) | ($) | ||||||||||||||||||||||||||||||||||||
S.D. Newlin | 200,000 | (2) | 1,316,000 | (6) | |||||||||||||||||||||||||||||||||||||||||
116,600 | (4) | 58,300 | (4) | 9.1850 | 2/20/2013 | ||||||||||||||||||||||||||||||||||||||||
308,400 | (3) | 6.585 | 3/7/2014 | ||||||||||||||||||||||||||||||||||||||||||
W.D. Wilson | 26,400 | (5) | 8.9400 | 1/4/2012 | |||||||||||||||||||||||||||||||||||||||||
42,000 | (4) | 21,000 | (4) | 6.5100 | 1/3/2013 | ||||||||||||||||||||||||||||||||||||||||
88,200 | (3) | 6.585 | 3/7/2014 | ||||||||||||||||||||||||||||||||||||||||||
128,536 | 0 | 10.3125 | 2/3/2008 | ||||||||||||||||||||||||||||||||||||||||||
200 | 0 | 9.0000 | 9/4/2010 | ||||||||||||||||||||||||||||||||||||||||||
71,100 | 0 | 8.7000 | 2/27/2011 | ||||||||||||||||||||||||||||||||||||||||||
82,400 | 0 | 12.2200 | 3/25/2012 | ||||||||||||||||||||||||||||||||||||||||||
61,900 | 0 | 6.0000 | 3/31/2013 | ||||||||||||||||||||||||||||||||||||||||||
B. Baert | 18,600 | (5) | 8.9400 | 1/4/2012 | |||||||||||||||||||||||||||||||||||||||||
25,000 | (4) | 12,500 | (4) | 6.5100 | 1/3/2013 | ||||||||||||||||||||||||||||||||||||||||
53,100 | (3) | 6.5850 | 3/7/2014 | ||||||||||||||||||||||||||||||||||||||||||
7,073 | 0 | 15.0000 | 11/3/2008 | ||||||||||||||||||||||||||||||||||||||||||
6,969 | 0 | 10.6250 | 11/30/2009 | ||||||||||||||||||||||||||||||||||||||||||
200 | 0 | 9.0000 | 9/4/2010 | ||||||||||||||||||||||||||||||||||||||||||
41,000 | 0 | 8.7000 | 2/27/2011 | ||||||||||||||||||||||||||||||||||||||||||
47,500 | 0 | 12.2200 | 3/25/2012 | ||||||||||||||||||||||||||||||||||||||||||
M.E. Kahler | 37,800 | (4) | 18,900 | (4) | 9.0200 | 5/24/2013 | |||||||||||||||||||||||||||||||||||||||
50,700 | (3) | 6.5850 | 3/7/2014 | ||||||||||||||||||||||||||||||||||||||||||
M.L. Rademacher | 17,700 | (5) | 8.9400 | 1/4/2012 | |||||||||||||||||||||||||||||||||||||||||
28,200 | (4) | 14,100 | (4) | 6.5100 | 1/3/2013 | ||||||||||||||||||||||||||||||||||||||||
55,500 | (3) | 6.5850 | 3/7/2014 | ||||||||||||||||||||||||||||||||||||||||||
19,524 | 0 | 11.5000 | 1/5/2010 | ||||||||||||||||||||||||||||||||||||||||||
200 | 0 | 9.0000 | 9/4/2010 | ||||||||||||||||||||||||||||||||||||||||||
42,700 | 0 | 8.7000 | 2/27/2011 | ||||||||||||||||||||||||||||||||||||||||||
49,500 | 0 | 12.2200 | 3/25/2012 | ||||||||||||||||||||||||||||||||||||||||||
39,100 | 0 | 6.0000 | 3/31/2013 | ||||||||||||||||||||||||||||||||||||||||||
Option/SAR Awards | Stock Awards | ||||||||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||||||
Incentive Plan | |||||||||||||||||||||||||||||||||||
Number of | Number of | Awards: Number of | |||||||||||||||||||||||||||||||||
Securities | Securities | Securities | Market Value | ||||||||||||||||||||||||||||||||
Underlying | Underlying | Underlying | Option/ | Number of Shares | of Shares or | ||||||||||||||||||||||||||||||
Unexercised | Unexercised | Unexercised | SARs | Option/ | or Units of Stock | Units of Stock | |||||||||||||||||||||||||||||
Options | Options/SARs | Unearned | Exercise | SARs | That Have Not | That Have Not | |||||||||||||||||||||||||||||
(#) | (#) | Options/SARs | Price | Expiration | Vested | Vested | |||||||||||||||||||||||||||||
Name | Exercisable(1) | Unexercisable | (#) | ($) | Date | (#) | ($)(2) | ||||||||||||||||||||||||||||
S.D. Newlin | 200,000 | (3) | 630,000 | ||||||||||||||||||||||||||||||||
114,700 | (4) | 361,305 | |||||||||||||||||||||||||||||||||
116,600 | (5) | 58,300 | (5) | 9.1850 | 2/20/2013 | ||||||||||||||||||||||||||||||
308,400 | (6) | 6.5850 | 3/7/2014 | ||||||||||||||||||||||||||||||||
286,800 | (7) | 6.7650 | 3/5/2015 | ||||||||||||||||||||||||||||||||
R.M. Patterson | 40,000 | (4) | 126,000 | ||||||||||||||||||||||||||||||||
60,000 | (7) | 7.7200 | 5/14/2015 | ||||||||||||||||||||||||||||||||
W.D. Wilson | 2,237 | (4) | 7,047 | ||||||||||||||||||||||||||||||||
26,400 | (8) | 8.9400 | 1/4/2012 | ||||||||||||||||||||||||||||||||
42,000 | (5) | 21,000 | (5) | 6.5100 | 1/3/2013 | ||||||||||||||||||||||||||||||
88,200 | (6) | 6.5850 | 3/7/2014 | ||||||||||||||||||||||||||||||||
10,867 | (9) | 0 | 6.7650 | 3/5/2015 | |||||||||||||||||||||||||||||||
200 | 0 | 9.0000 | 9/4/2010 | ||||||||||||||||||||||||||||||||
71,100 | 0 | 8.7000 | 2/27/2011 | ||||||||||||||||||||||||||||||||
82,400 | 0 | 12.2200 | 9/9/2011 | ||||||||||||||||||||||||||||||||
61,900 | 0 | 6.0000 | 9/9/2011 | ||||||||||||||||||||||||||||||||
K.M. Smith | 12,600 | (4) | 39,690 | ||||||||||||||||||||||||||||||||
18,600 | (10) | 8.9400 | 1/4/2012 | ||||||||||||||||||||||||||||||||
29,800 | (5) | 14,900 | (5) | 6.5100 | 1/3/2013 | ||||||||||||||||||||||||||||||
58,500 | (6) | 6.5850 | 3/7/2014 | ||||||||||||||||||||||||||||||||
31,200 | (7) | 6.7650 | 3/5/2015 | ||||||||||||||||||||||||||||||||
200 | 0 | 9.0000 | 9/4/2010 | ||||||||||||||||||||||||||||||||
42,700 | 0 | 8.7000 | 2/27/2011 | ||||||||||||||||||||||||||||||||
49,500 | 0 | 12.2200 | 3/25/2012 | ||||||||||||||||||||||||||||||||
39,100 | 0 | 6.0000 | 3/31/2013 | ||||||||||||||||||||||||||||||||
M.L. Rademacher | 12,600 | (4) | 39,690 | ||||||||||||||||||||||||||||||||
17,700 | (10) | 8.9400 | 1/4/2012 | ||||||||||||||||||||||||||||||||
28,200 | (5) | 14,100 | (5) | 6.5100 | 1/3/2013 | ||||||||||||||||||||||||||||||
55,500 | (6) | 6.5850 | 3/7/2014 | ||||||||||||||||||||||||||||||||
31,200 | (7) | 6.7650 | 3/5/2015 | ||||||||||||||||||||||||||||||||
19,524 | 0 | 11.5000 | 1/5/2010 | ||||||||||||||||||||||||||||||||
200 | 0 | 9.0000 | 9/4/2010 | ||||||||||||||||||||||||||||||||
42,700 | 0 | 8.7000 | 2/27/2011 | ||||||||||||||||||||||||||||||||
49,500 | 0 | 12.2200 | 3/25/2012 | ||||||||||||||||||||||||||||||||
39,100 | 0 | 6.0000 | 3/31/2013 | ||||||||||||||||||||||||||||||||
3439
Option/SAR Awards | Stock Awards | ||||||||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||||||
Incentive Plan | |||||||||||||||||||||||||||||||||||
Number of | Number of | Awards: Number of | |||||||||||||||||||||||||||||||||
Securities | Securities | Securities | Market Value | ||||||||||||||||||||||||||||||||
Underlying | Underlying | Underlying | Option/ | Number of Shares | of Shares or | ||||||||||||||||||||||||||||||
Unexercised | Unexercised | Unexercised | SARs | Option/ | or Units of Stock | Units of Stock | |||||||||||||||||||||||||||||
Options | Options/SARs | Unearned | Exercise | SARs | That Have Not | That Have Not | |||||||||||||||||||||||||||||
(#) | (#) | Options/SARs | Price | Expiration | Vested | Vested | |||||||||||||||||||||||||||||
Name | Exercisable(1) | Unexercisable | (#) | ($) | Date | (#) | ($)(2) | ||||||||||||||||||||||||||||
B. Baert | 12,600 | (4) | 39,690 | ||||||||||||||||||||||||||||||||
18,600 | (10) | 8.9400 | 1/4/2012 | ||||||||||||||||||||||||||||||||
25,000 | (5) | 12,500 | (5) | 6.5100 | 1/3/2013 | ||||||||||||||||||||||||||||||
53,100 | (6) | 6.5850 | 3/7/2014 | ||||||||||||||||||||||||||||||||
31,200 | (7) | 6.7650 | 3/5/2015 | ||||||||||||||||||||||||||||||||
6,969 | 0 | 10.6250 | 11/30/2009 | ||||||||||||||||||||||||||||||||
200 | 0 | 9.0000 | 9/4/2010 | ||||||||||||||||||||||||||||||||
41,000 | 0 | 8.7000 | 2/27/2011 | ||||||||||||||||||||||||||||||||
47,500 | 0 | 12.2200 | 3/25/2012 | ||||||||||||||||||||||||||||||||
(1) | This column shows the fully-exercisable stock options and SARs granted to the Named Executive Officers prior to the last fiscal year. | |
(2) | Based on the closing market price of our common shares on the last trading day of the 2008 fiscal year, December 31, 2008 ($3.15). | |
(3) | These shares of restricted stock vest on the third anniversary of the date of grant. | |
These RSUs were granted in 2008 and vest on the third anniversary of the date of grant. | ||
(5) | These stock-settled SARs were granted in 2006 and vest upon the attainment of target prices (sustained for three consecutive trading days) for our common shares as follows: 1/3 @ $7.50; 1/3 @ $8.50; and1/3 @ $10.00. In no event may the SARs vest sooner than one year from the date of grant. | |
(6) | These stock-settled SARs were granted in 2007 and vest upon the attainment of target prices (sustained for three consecutive trading days) for our common shares as follows: 1/3 @ $7.24; 1/3 @ $7.90; and1/3 @ $8.56. In no event may the SARs vest sooner than one year from the date of grant. | |
These stock-settled SARs were granted in | ||
The stock-settled SARs granted to Mr. Wilson in 2005 became fully vested due to his separation from service and retirement eligibility under the terms of those awards. | ||
(9) | One-third of the stock-settled SARs granted to Mr. Wilson vested due to his separation from service and retirement eligibility under the terms of those awards within six months of the vesting date. The remaining two-thirds were cancelled. | |
(10) | These stock-settled SARs were granted in 2005 and vest upon the attainment of target prices (sustained for three consecutive trading days) for our common shares as follows: 1/3 @ $9.84; 1/3 @ $10.73; and 1/3 @ $11.63. | |
40
Option/SAR Awards | Stock Awards | |||||||||||||||||||||||||||||||||||
Number of Shares | Number of Shares | Present Value of | ||||||||||||||||||||||||||||||||||
Acquired on | Value Realized | Acquired on | Value Realized | Number of Years | Accumulated | Payments During Last | ||||||||||||||||||||||||||||||
Exercise(1) | on Exercise(2) | Vesting(3) | on Vesting(4) | Credited Service | Benefit | Fiscal Year | ||||||||||||||||||||||||||||||
Name | (#) | ($) | (#) | ($) | Plan Name | (#) | ($) | ($) | ||||||||||||||||||||||||||||
S.D. Newlin | — | — | — | — | Supplemental Retirement benefit under Letter Agreement | — | 4,341,255(1) | 0 | ||||||||||||||||||||||||||||
R.M. Patterson | N/A | — | — | — | ||||||||||||||||||||||||||||||||
W.D. Wilson | 24,800 | 12,571 | 11,900 | 78,302 | PolyOne Merged Pension Plan(2) | 24.9 | 589,172(2) | 0 | ||||||||||||||||||||||||||||
The Geon Company Section 401(a)(17) Benefit Restoration Plan(2) | 24.9 | 854,017(2) | 0 | |||||||||||||||||||||||||||||||||
K. M. Smith | PolyOne Merged Pension Plan(2)(3) | 17.4 | 371,675(2)(3) | 0 | ||||||||||||||||||||||||||||||||
The Geon Company Section 401(a)(17) Benefit Restoration Plan(2)(4) | 17.4 | 473,654(2)(4) | 0 | |||||||||||||||||||||||||||||||||
M.L. Rademacher | N/A | — | — | — | ||||||||||||||||||||||||||||||||
B. Baert | — | — | 8,366 | 55,048 | N/A | — | — | — | ||||||||||||||||||||||||||||
M.E. Kahler | — | — | — | — | ||||||||||||||||||||||||||||||||
M.L. Rademacher | — | — | 7,900 | 51,982 | ||||||||||||||||||||||||||||||||
(1) | The Present Value of Accumulated Benefit shown above for Mr. | |
(2) | ||
35
Present Value of | ||||||||||||||||||
Number of Years | Accumulated | Payments During Last | ||||||||||||||||
Credited Service | Benefit(1) | Fiscal Year | ||||||||||||||||
Name | Plan Name | (#) | ($) | ($) | ||||||||||||||
S.D. Newlin | N/A | — | — | — | ||||||||||||||
W.D. Wilson | PolyOne Merged Pension Plan | 24.9 | 512,786 | 0 | ||||||||||||||
The Geon Company Section 401(a)(17) Benefit Restoration Plan | 24.9 | 750,663 | 0 | |||||||||||||||
B. Baert | N/A | — | — | — | ||||||||||||||
M.E. Kahler | N/A | — | — | — | ||||||||||||||
M.L. Rademacher | N/A | — | — | — | ||||||||||||||
The Present Value of Accumulated Benefit shown above for each plan for | ||
(3) | Mr. Smith’s Number of Years Credited Service includes four additional years of pension service discussed in the narrative following the 2008 Pension Benefit table. Without the four additional years of pension service, the Present Value of Accumulated Benefit would have been $286,340 instead of the $371,675 shown in the table. Subsequent earnings under the qualified and non-qualified plan will be frozen effective March 20, 2009. | |
(4) | Mr. Smith’s Number of Years Credited Service includes four additional years of pension service discussed in the narrative following the 2008 Pension benefit table. Without the four additional years of pension service, the Present Value of Accumulated Benefit would have been $364,905 instead of the $473,654 in the table. Subsequent earnings under the qualified and non-qualified plan will be frozen effective March 20, 2009. |
41
36
42
37
Executive | Registrant | Aggregate | Aggregate | Executive | Registrant | Aggregate | Aggregate | |||||||||||||||||||||||||||||||||||||||||||
Contributions | Contributions in | Earnings | Withdrawals/ | Aggregate Balance | Contributions | Contributions in | Earnings | Withdrawals/ | Aggregate Balance | |||||||||||||||||||||||||||||||||||||||||
in Last FY(1) | Last FY(2) | in Last FY(3) | Distributions | at Last FYE(4) | in Last FY(1) | Last FY(2) | in Last FY(3) | Distributions(4) | at Last FYE(5) | |||||||||||||||||||||||||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||||||||||||
S.D. Newlin | $ | 86,580 | $ | 94,462 | $ | 10,664 | — | $ | 231,805 | $ | 75,382 | $ | 82,231 | $ | 14,770 | $ | 0 | $ | 404,188 | |||||||||||||||||||||||||||||||
R.M. Patterson | 38,308 | 12,000 | (8,769 | ) | 0 | 41,539 | ||||||||||||||||||||||||||||||||||||||||||||
W.D. Wilson | 75,503 | 45,552 | 43,165 | — | 666,815 | 49,125 | 26,788 | (150,522 | ) | (284,766 | ) | 307,440 | ||||||||||||||||||||||||||||||||||||||
K.M. Smith | 13,442 | 23,330 | (35,438 | ) | 0 | 208,085 | ||||||||||||||||||||||||||||||||||||||||||||
M.L. Rademacher | 63,630 | 25,040 | (140,380 | ) | 0 | 403,432 | ||||||||||||||||||||||||||||||||||||||||||||
B. Baert | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
M.E. Kahler | 8,836 | 10,239 | 173 | — | 19,248 | |||||||||||||||||||||||||||||||||||||||||||||
M.L. Rademacher | 65,252 | 25,843 | 38,485 | — | 455,142 | |||||||||||||||||||||||||||||||||||||||||||||
(1) | These amounts reflect actual amounts earned by the Named Executive Officers in |
2006 ‘‘Non-Equity Incentive | 2007 “Non-Equity | |||||||||||||||||
Name | 2007 ‘‘Salary” column | Plan Compensation” column | ||||||||||||||||
Incentive Plan | ||||||||||||||||||
2008 “Salary” | Compensation” | |||||||||||||||||
Column | Column | |||||||||||||||||
S.D. Newlin | $ | 38,037 | $ | 48,543 | $ | 41,192 | $ | 34,190 | ||||||||||
R.M. Patterson | 38,308 | — | ||||||||||||||||
W.D. Wilson | 46,324 | 29,179 | 28,928 | 20,197 | ||||||||||||||
K.M. Smith | 13,442 | — | ||||||||||||||||
M.L. Rademacher | 38,653 | 24,977 | ||||||||||||||||
B. Baert | — | — | — | — | ||||||||||||||
M.E. Kahler | 8,836 | — | ||||||||||||||||
M.L. Rademacher | 39,191 | — | ||||||||||||||||
(2) | This column contains contributions by us in the last fiscal year under our non-qualified retirement plan, the PolyOne Supplemental Retirement Benefit Plan, which provides for benefits in excess of amounts permitted to be contributed under our qualified retirement plan, as follows: (a) our cash contributions in amounts equal to 100% on the first 3% of employee contributions plus 50% on the next 3% of employee contributions (the “Company Match”); (b) a retirement contribution by us in an amount equal to 2% of eligible earnings (the “Retirement Contribution”); and (c) for |
43
Company Contribution | Newlin | Wilson | Baert | Kahler | Rademacher | Newlin | Patterson | Wilson | Smith | Rademacher | Baert | |||||||||||||||||||||||||||||||||||||||||||
Company Match | 56,537 | 11,492 | 14,738 | 10,081 | 19,089 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Company Match | $ | 64,935 | $ | 22,651 | — | $ | 6,627 | $ | 19,576 | |||||||||||||||||||||||||||||||||||||||||||||
Retirement Contribution | 29,527 | 7,634 | — | 3,612 | 6,267 | 25,694 | 508 | 4,017 | 5,047 | 5,951 | — | |||||||||||||||||||||||||||||||||||||||||||
Transition Contribution | — | 15,267 | — | — | — | — | — | 8,033 | 8,202 | — | — | |||||||||||||||||||||||||||||||||||||||||||
(3) | Because amounts included in this column do not include above-market or preferential earnings, none of these amounts are included in the “Change in Pension Value and Nonqualified Deferred Compensation Earnings” column of the Summary Compensation Table. | |
(4) | Subsequent to his separation from service, Mr. Wilson’s balance of $170,760 in his Geon Company Section 401(a)(17) Benefit Retirement Plan was distributed to him under the provisions of the plan and he elected to withdraw a portion of his balance ($114,006) from the PolyOne Supplemental Retirement Benefit Plan. | |
(5) | A portion of the balance reflected in the table represents amounts earned by the executives, which they have elected to defer on a voluntary basis. Certain of the Named Executive Officers also have balances in frozen non-qualified deferred compensation plans sponsored by our predecessor companies, Geon and M.A. Hanna. These plans are The Geon Company Section 401(a)(17) Benefit Restoration Plan and the M.A. Hanna Company Supplemental Retirement Benefit Plan. These amounts are reflected in the table. |
38
44
• | any person becomes the beneficial owner of 25% or more of the combined voting power of our outstanding securities (subject to certain exceptions); | |
• | there is a change in the majority of our Board of Directors; | |
• | certain corporate reorganizations occur where the existing shareholders do not retain more than 60% of the common shares and combined voting power of the outstanding voting securities of the surviving entity; or | |
• | there is shareholder approval of a complete liquidation or dissolution of PolyOne. |
39
• | a lump sum payment of two or three years of base salary, depending on the executive; | |
• | a payment of up to two or three times (depending on the executive) the executive’s targeted annual incentive amount in effect prior to the change of control; | |
• | reimbursement for costs of employee health and welfare benefits for up to two or three years (depending on the executive) equal to the difference between (1) the amount the executive is required to pay for such coverage and (2) the amount the executive would have been required to pay if he had paid the same percentage of the cost that a similarly situated employee would pay as of the date of the executive’s termination of employment, plus reimbursement for any taxes imposed as a result of the reimbursement for health care coverage; | |
• | a financial planning/tax preparation allowance equal to the annual financial planning/tax preparation allowance the executive was entitled to receive prior to the change of control; | |
• | a payment based on the difference between what the executive is entitled to receive under certain retirement plans and what the executive would have received under such retirement |
45
plans if he had accumulated two or three (depending on the executive) additional years of service under such plans; |
• | a lump sum payment equal to the company contributions required to be made to certain retirement plans on behalf of the executive for the year of the change of control or the year of termination; and | |
• | a taxgross-up for any excise tax due under the Internal Revenue Code for any payments or distributions made under the agreements. |
• | changes in duties, responsibilities, reporting relationships and status that constitute a material demotion; | |
• | the assignment of duties or responsibilities that are materially inconsistent with, or materially and adversely change, the executive’s positions, duties, responsibilities or reporting relationships and status; | |
• | a reduction in base salary or target incentive; | |
• | the failure to continue employee benefits or perquisites on a substantially equivalent basis; |
40
• | the requirement to change the principal location of the executive’s work, which results in an additional commute of more than 50 miles; | |
• | the requirement for increased travel (one-third more) away from the executive’s office; | |
• | the failure of a successor to assume the Continuity Agreement; or | |
• | a termination of employment that does not comply with the Continuity Agreement. |
46
• | salary continuation payments in an amount equal to two times the Named Executive Officer’s base salary; | |
• | a pro rata payment of his annual bonus for the year of termination; |
41
• | reimbursement for the costs previously paid by us for continued coverage for two years in our medical, dental and vision plans plus any taxes imposed as a result of such reimbursement; and | |
• | fees for outplacement benefits for a period of 12 months. |
47
• | any person becomes the beneficial owner of 20% or more of the combined voting power of our outstanding securities (subject to certain exceptions); | |
• | there is a change in the majority of our Board of Directors; | |
• | certain corporate reorganizations occur where the existing shareholders do not retain more than 60% of the common shares and combined voting power of the outstanding voting securities of the surviving entity; or | |
• | there is shareholder approval of a complete liquidation or dissolution of PolyOne. |
4248
Voluntary | ||||||||||||||||||||||||||||||||||||||||||||||||||
Termination or | Involuntary | Voluntary | ||||||||||||||||||||||||||||||||||||||||||||||||
Retirement(1) | Involuntary | Termination | Termination or | Involuntary | ||||||||||||||||||||||||||||||||||||||||||||||
(No CIC; or, | Termination | Involuntary | without Cause or | Retirement(1) | Involuntary | Termination | ||||||||||||||||||||||||||||||||||||||||||||
Following a CIC, | with Cause | Termination | for Good Reason | (No COC; or, | Termination | Involuntary | without Cause or | |||||||||||||||||||||||||||||||||||||||||||
without Good | (Including | without Cause | (Following a | Following a COC, | with Cause | Termination | for Good Reason | |||||||||||||||||||||||||||||||||||||||||||
Reason) | Following a CIC) | Death/Disability | (No CIC) | CIC) | without Good | (Including | without Cause | (Following a | ||||||||||||||||||||||||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | Reason) | Following a COC) | Death/Disability | (No COC) | COC) | |||||||||||||||||||||||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||||||||||||||||||
Cash Severance Benefit (salary continuation, multiple of annual incentive payments and additional cash payment for termination prior to 2/21/09) | $ | 0 | $ | 0 | $ | 0 | $ | 2,265,000 | $ | 4,530,000 | $ | 0 | $ | 0 | $ | 0 | $ | 3,105,001 | $ | 5,685,001 | (8) | |||||||||||||||||||||||||||||
Annual Incentive for Year of Termination | 0 | 0 | 0 | 682,971 | 682,971 | 0 | 0 | 0 | 700,650 | 700,650 | ||||||||||||||||||||||||||||||||||||||||
Cash LTIP-Vesting of Performance Units | 0 | 0 | 1,035,367 | (2) | 1,096,669 | 2,075,600 | 0 | 0 | 2,071,233 | (2) | 0 | 3,107,600 | ||||||||||||||||||||||||||||||||||||||
LTIP — Vesting of Phantom Units | 0 | 0 | 799,095 | 0 | 799,095 | |||||||||||||||||||||||||||||||||||||||||||||
Equity Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||
- Restricted Stock | 0 | 0 | 1,316,000 | 0 | 1,316,000 | |||||||||||||||||||||||||||||||||||||||||||||
- Restricted Stock / Units | 0 | 0 | 730,363 | 0 | 991,305 | |||||||||||||||||||||||||||||||||||||||||||||
- Unexercisable Stock Options/SARs | 0 | 0 | 0 | (3) | 0 | 0 | 0 | 0 | 0 | (3) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Other Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits | 0 | 0 | 0 | 20,327 | 30,490 | |||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits including taxgross-up | 0 | 0 | 0 | 42,140 | 63,209 | |||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Other Benefits (car allowance; other welfare benefits) | 0 | 0 | 0 | 45,768 | 15,256 | 0 | 0 | 0 | 45,255 | 15,085 | ||||||||||||||||||||||||||||||||||||||||
- Financial Planning Services | 0 | 0 | 0 | 39,000 | 13,000 | 0 | 0 | 0 | 39,000 | 13,000 | ||||||||||||||||||||||||||||||||||||||||
- Outplacement Benefits | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
- Additional Company Contribution for Defined Contribution Plans Under the Management Continuity Agreement | 0 | 0 | 0 | 0 | 294,450 | 0 | 0 | 0 | 0 | 335,400 | ||||||||||||||||||||||||||||||||||||||||
Excise Tax Gross Up | 0 | 0 | 0 | 0 | 3,753,253 | |||||||||||||||||||||||||||||||||||||||||||||
Excise Tax Gross Up(4) | 0 | 0 | 0 | 0 | 5,000,713 | |||||||||||||||||||||||||||||||||||||||||||||
SUB-TOTAL (Benefits Triggered Upon a Termination of Employment) | 0 | 0 | 3,150,462 | 4,149,735 | 13,510,115 | 0 | 0 | 2,801,596 | 3,932,046 | 15,911,963 | ||||||||||||||||||||||||||||||||||||||||
PLAN BALANCES/VESTED BENEFITS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution Plan(s) Balances (includes the Retirement Savings Plan and the Supplemental Retirement Benefit Plan)(4) | 294,610 | 294,610 | 294,610 | 294,610 | 294,610 | |||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution Plan(s) Balances (includes the Retirement Savings Plan and the Supplemental Retirement Benefit Plan)(5) | 501,587 | 501,587 | 501,587 | 501,587 | 501,587 | |||||||||||||||||||||||||||||||||||||||||||||
Present Value of Accrued Pension Benefit | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Present Value of Accrued Pension Benefit(6) | 0 | 0 | 3,158,119/ 4,137,098 | (7) | 4,137,098 | 4,137,098 | ||||||||||||||||||||||||||||||||||||||||||||
TOTAL (Includes Benefits that are Vested and Currently Payable to the Executive) | 294,610 | 294,610 | 3,445,072 | 4,444,345 | 13,804,725 | 501,587 | 501,587 | 6,461,302/ 7,440,281 | (7) | 8,570,731 | 20,550,648 | |||||||||||||||||||||||||||||||||||||||
(1) | Retirement is | |
(2) | Assumes achievement of performance goals at the target level of performance. | |
(3) | Assumes a constant share price of | |
(4) | This assumes that the presumption that any arrangement entered into within 12 months of a change of control is a parachute payment under Section 280G of the Internal Revenue Code is rebutted and, thus, the retirement benefit for Mr. Newlin is not considered a parachute payment for purposes of the calculations in the table. | |
(5) | This row consists mainly of amounts contributed by the executive to a retirement benefit plan of the Company that otherwise would have been paid to the executive and includes amounts disclosed in the “Aggregate Balance at Last FYE” column of the | |
(6) | The numbers shown in the table are illustrative only because lump sum payments are not available. | |
(7) | The first number represents payments received upon death and the second number represents payments received upon disability. | |
(8) | $525,001 of this amount is payable only upon involuntary termination without cause with a change of control. |
49
Voluntary | |||||||||||||||||||||||||
Termination or | Involuntary | ||||||||||||||||||||||||
Retirement(1) | Involuntary | Termination | |||||||||||||||||||||||
(No COC; or, | Termination | Involuntary | without Cause or | ||||||||||||||||||||||
Following a COC, | with Cause | Termination | for Good Reason | ||||||||||||||||||||||
without Good | (Including | without Cause | (Following a | ||||||||||||||||||||||
Reason) | Following a COC) | Death/Disability | (No COC) | COC) | |||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||
Cash Severance Benefit (salary continuation, multiple of annual incentive payments) | $ | 0 | $ | 0 | $ | 0 | $ | 830,000 | $ | 1,867,500 | |||||||||||||||
Annual Incentive for Year of Termination | 0 | 0 | 0 | 107,568 | 107,568 | ||||||||||||||||||||
Cash LTIP-Vesting of Performance Units | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Equity Awards | |||||||||||||||||||||||||
- Restricted Stock Units | 0 | 0 | 26,250 | 0 | 126,000 | ||||||||||||||||||||
- Unexercisable Stock Options/SARs | 0 | 0 | 0 | (2) | 0 | ||||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits including taxgross-up | 0 | 0 | 0 | 42,212 | 64,386 | ||||||||||||||||||||
- Continuation of Other Benefits (car allowance; other welfare benefits) | 0 | 0 | 0 | 0 | 685 | ||||||||||||||||||||
- Financial Planning Services | 0 | 0 | 0 | 0 | 10,000 | ||||||||||||||||||||
- Outplacement Benefits | 0 | 0 | 0 | 9,000 | 0 | ||||||||||||||||||||
- Additional Company Contribution for Defined Contribution Plans Under the Management Continuity Agreement | 0 | 0 | 0 | 0 | 121,390 | ||||||||||||||||||||
Excise Tax Gross Up | 0 | 0 | 0 | 0 | 931,301 | ||||||||||||||||||||
SUB-TOTAL (Benefits Triggered Upon a Termination of Employment) | 0 | 0 | 26,250 | 988,780 | 3,228,830 | ||||||||||||||||||||
PLAN BALANCES/VESTED BENEFITS | |||||||||||||||||||||||||
Defined Contribution Plan(s) Balances (includes the Retirement Savings Plan and the Supplemental Retirement Benefit Plan)(3) | 45,665 | 45,665 | 45,665 | 45,665 | 45,665 | ||||||||||||||||||||
Present Value of Accrued Pension Benefit | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
TOTAL (Includes Benefits that are Vested and Currently Payable to the Executive) | 45,665 | 45,665 | 71,915 | 1,034,445 | 3,274,495 | ||||||||||||||||||||
(1) | Retirement is generally defined as the executive’s attainment of age 55 with 10 years of service. | |
(2) | Assumes a constant share price of $3.15, the closing sales price of our common shares on December 31, 2008. | |
(3) | This row consists mainly of amounts contributed by the executive to a retirement benefit plan of the Company that otherwise would have been paid to the executive and includes amounts disclosed in the “Aggregate Balance at Last FYE” column of the 2008 Nonqualified Deferred Compensation table. |
4350
Voluntary | Involuntary | Voluntary | ||||||||||||||||||||||||||||||||||||||||||||||||
Termination or | Involuntary | Termination | Termination or | Involuntary | ||||||||||||||||||||||||||||||||||||||||||||||
Retirement(1) | Termination | without Cause | Retirement(1) | Involuntary | Termination | |||||||||||||||||||||||||||||||||||||||||||||
(No CIC; or, | with Cause | Involuntary | or for Good | (No COC; or, | Termination | Involuntary | without Cause or | |||||||||||||||||||||||||||||||||||||||||||
Following a | (Including | Termination | Reason | Following a COC, | with Cause | Termination | for Good Reason | |||||||||||||||||||||||||||||||||||||||||||
CIC, without | Following a | without Cause | (Following a | without Good | (Including | without Cause | (Following a | |||||||||||||||||||||||||||||||||||||||||||
Good Reason) | CIC) | Death/Disability | (No CIC) | CIC) | Reason) | Following a COC) | Death/Disability | (No COC) | COC) | |||||||||||||||||||||||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||||||||||
Cash Severance Benefit (salary continuation, multiple of annual incentive payments) | $ | 0 | $ | 0 | $ | 0 | $ | 732,000 | $ | 1,647,000 | ||||||||||||||||||||||||||||||||||||||||
Cash Severance Benefit (salary continuation, multiple of annual incentive payments | $ | 0 | $ | 0 | $ | 0 | $ | 672,000 | $ | 1,512,000 | ||||||||||||||||||||||||||||||||||||||||
Annual Incentive for Year of Termination | 0 | 0 | 0 | 167,595 | 167,595 | 0 | 0 | 0 | 140,389 | 140,389 | ||||||||||||||||||||||||||||||||||||||||
Cash LTIP-Vesting of Performance Units | 0 | 0 | 296,067 | (2) | 0 | 595,000 | 0 | 0 | 381,100 | (2) | 0 | 525,500 | ||||||||||||||||||||||||||||||||||||||
Equity Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||
- Restricted Stock | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
- Restricted Stock Units | 0 | 0 | 11,025 | 0 | 39,690 | |||||||||||||||||||||||||||||||||||||||||||||
- Unexercisable Stock Options/SARs | 0 | 0 | 0 | (3) | 0 | 1,470 | 0 | 0 | 0 | (3) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Other Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits including taxgross-up | 0 | 0 | 0 | 42,212 | 64,386 | |||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits | 0 | 0 | 0 | 15,531 | 23,297 | |||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Other Benefits (other welfare benefits) | 0 | 0 | 0 | 0 | 15,256 | |||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Other Benefits (car allowance; other welfare benefits) | 0 | 0 | 0 | 0 | 12,685 | |||||||||||||||||||||||||||||||||||||||||||||
- Financial Planning Services | 0 | 0 | 0 | 0 | 10,000 | 0 | 0 | 0 | 0 | 10,000 | ||||||||||||||||||||||||||||||||||||||||
- Outplacement Benefits | 0 | 0 | 0 | 9,500 | 0 | 0 | 0 | 0 | 9,000 | 0 | ||||||||||||||||||||||||||||||||||||||||
- Additional Company Contribution for Defined Contribution Plans Under the Management Continuity Agreement | 0 | 0 | 0 | 0 | 172,940 | 0 | 0 | 0 | 0 | 147,420 | ||||||||||||||||||||||||||||||||||||||||
Excise Tax Gross Up | 0 | 0 | 0 | 0 | 1,117,623 | 0 | 0 | 0 | 0 | 986,209 | ||||||||||||||||||||||||||||||||||||||||
SUB-TOTAL (Benefits Triggered Upon a Termination of Employment) | 0 | 0 | 296,067 | 924,626 | 3,750,181 | 0 | 0 | 392,125 | 863,601 | 3,438,279 | ||||||||||||||||||||||||||||||||||||||||
PLAN BALANCES/VESTED BENEFITS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution Plan(s) Balances (includes the Retirement Savings Plan and the Supplemental Retirement Benefit Plan)(4) | 1,132,630 | 1,132,630 | 1,132,630 | 1,132,630 | 1,132,630 | 445,355 | 445,355 | 445,355 | 445,355 | 445,355 | ||||||||||||||||||||||||||||||||||||||||
Present Value of Accrued Pension Benefit(5) | 970,450 | 970,450 | 482,169/970,450 | (6) | 970,450 | 970,450 | 546,724 | 546,724 | 261,151/ 546,724 | (6) | 546,724 | 546,724 | ||||||||||||||||||||||||||||||||||||||
TOTAL (Includes Benefits that are Vested and Currently Payable to the Executive) | 2,103,080 | 2,103,080 | 1,910,866/2,399,147 | (6) | 3,027,706 | 5,853,261 | 992,079 | 992,079 | 1,098,631/ 1,384,204 | (6) | 1,855,680 | 4,430,358 | ||||||||||||||||||||||||||||||||||||||
(1) | Retirement is generally defined as the executive’s attainment of age 55 with 10 years of service. | |
(2) | Assumes achievement of performance goals at the target level of performance. | |
(3) | Assumes a constant share price of | |
(4) | This row consists mainly of amounts contributed by the executive to a retirement benefit plan of the Company that otherwise would have been paid to the executive and includes amounts disclosed in the “Aggregate Balance at Last FYE” column of the | |
(5) | The numbers shown in the table are illustrative only because lump sum payments are not available. | |
(6) | The first number represents payments received upon death and the second number represents payments received upon disability. |
4451
Voluntary | |||||||||||||||||||||||||
Termination or | Involuntary | ||||||||||||||||||||||||
Retirement(2) | Involuntary | Termination | |||||||||||||||||||||||
(No CIC; or, | Termination | Involuntary | without Cause or | ||||||||||||||||||||||
Following a CIC, | with Cause | Termination | for Good Reason | ||||||||||||||||||||||
without Good | (Including | without Cause | (Following a | ||||||||||||||||||||||
Reason) | Following a CIC) | Death/Disability | (No CIC) | CIC) | |||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||
Cash Severance Benefit (salary continuation, multiple of annual incentive payments) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
Annual Incentive for Year of Termination | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Cash LTIP-Vesting of Performance Units | 176,900 | (3) | 0 | 176,900 | (3) | 0 | 355,200 | ||||||||||||||||||
Severance Pay Under Belgian Law | 0 | 0 | 0 | 1,742,763 | (6) | 1,742,763 | (6) | ||||||||||||||||||
Equity Awards | |||||||||||||||||||||||||
- Restricted Stock | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
- Unexercisable Stock Options/SARs | 0 | 0 | 0 | (4) | 0 | 875 | |||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
- Continuation of Other Benefits (other welfare benefits) | 0 | 0 | 0 | 0 | 856 | ||||||||||||||||||||
- Financial Planning Services | 0 | 0 | 0 | 0 | 8,000 | ||||||||||||||||||||
- Outplacement Benefits | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
- Additional Company Contribution for Defined Contribution Plans Under the Management Continuity Agreement | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Excise Tax Gross Up | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
SUB-TOTAL (Benefits Triggered Upon a Termination of Employment) | 176,900 | 0 | 176,900 | 1,742,763 | 2,107,694 | ||||||||||||||||||||
PLAN BALANCES/VESTED BENEFITS | |||||||||||||||||||||||||
Defined Contribution Plan(s) Balances (includes the Retirement Savings Plan and the Supplemental Retirement Benefit Plan)(5) | 411,486 | 411,486 | 411,486 | 411,486 | 411,486 | ||||||||||||||||||||
Present Value of Accrued Pension Benefit | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
TOTAL (Includes Benefits that are Vested and Currently Payable to the Executive) | 588,386 | 411,486 | 588,386 | 2,154,249 | 2,519,180 | ||||||||||||||||||||
45
Voluntary | |||||||||||||||||||||||||
Termination or | Involuntary | ||||||||||||||||||||||||
Retirement(1) | Involuntary | Termination | |||||||||||||||||||||||
(No CIC; or, | Termination | Involuntary | without Cause or | ||||||||||||||||||||||
Following a CIC, | with Cause | Termination | for Good Reason | ||||||||||||||||||||||
without Good | (Including | without Cause | (Following a | ||||||||||||||||||||||
Reason) | following a CIC) | Death/Disability | (No CIC) | CIC) | |||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||
Cash Severance Benefit (salary continuation, multiple of annual incentive payments) | $ | 0 | $ | 0 | $ | 0 | $ | 580,000 | $ | 1,305,000 | |||||||||||||||
Annual Incentive for Year of Termination | 0 | 0 | 0 | 131,671 | 131,671 | ||||||||||||||||||||
Cash LTIP-Vesting of Performance Units | 0 | 0 | 57,300 | (2) | 0 | 171,900 | |||||||||||||||||||
Equity Awards | |||||||||||||||||||||||||
- Restricted Stock | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
- Unexercisable Stock Options/SARs | 0 | 0 | 0 | (3) | 0 | 0 | |||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits | 0 | 0 | 0 | 22,367 | 33,550 | ||||||||||||||||||||
- Continuation of Other Benefits (other welfare benefits) | 0 | 0 | 0 | 0 | 12,856 | ||||||||||||||||||||
- Financial Planning Services | 0 | 0 | 0 | 0 | 10,000 | ||||||||||||||||||||
- Outplacement Benefits | 0 | 0 | 0 | 9,500 | 0 | ||||||||||||||||||||
- Additional Company Contribution for Defined Contribution Plans Under the Management Continuity Agreement | 0 | 0 | 0 | 0 | 84,830 | ||||||||||||||||||||
Excise Tax Gross Up | 0 | 0 | 0 | 0 | 730,572 | ||||||||||||||||||||
SUB-TOTAL (Benefits Triggered Upon a Termination of Employment) | 0 | 0 | 57,300 | 743,538 | 2,480,379 | ||||||||||||||||||||
PLAN BALANCES/VESTED BENEFITS | |||||||||||||||||||||||||
Defined Contribution Plan(s) Balances (includes the Retirement Savings Plan and the Supplemental Retirement Benefit Plan)(4) | 66,860 | 66,860 | 66,860 | 66,860 | 66,860 | ||||||||||||||||||||
Present Value of Accrued Pension Benefit | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
TOTAL (Includes Benefits that are Vested and Currently Payable to the Executive) | 66,860 | 66,860 | 124,160 | 810,398 | 2,547,239 | ||||||||||||||||||||
46
Voluntary | Involuntary | Voluntary | ||||||||||||||||||||||||||||||||||||||||||||||||
Termination or | Involuntary | Termination | Termination or | Involuntary | Involuntary | |||||||||||||||||||||||||||||||||||||||||||||
Retirement(1) | Termination | without Cause | Retirement(1) | Termination | Termination | |||||||||||||||||||||||||||||||||||||||||||||
(No CIC; or, | with Cause | Involuntary | or for Good | (No COC; or, | with Cause | Involuntary | without Cause or | |||||||||||||||||||||||||||||||||||||||||||
Following a | (Including | Termination | Reason | Following a COC, | (Including | Termination | for Good Reason | |||||||||||||||||||||||||||||||||||||||||||
CIC, without | Following a | without Cause | (Following a | without Good | Following a | without Cause | (Following a | |||||||||||||||||||||||||||||||||||||||||||
Good Reason) | CIC) | Death/Disability | (No CIC) | CIC) | Reason) | COC) | Death/Disability | (No COC) | COC) | |||||||||||||||||||||||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||||||||||
Cash Severance Benefit (salary continuation, multiple of annual incentive payments) | $ | 0 | $ | 0 | $ | 0 | $ | 620,000 | $ | 1,395,000 | $ | 0 | $ | 0 | $ | 0 | $ | 640,000 | $ | 1,440,000 | ||||||||||||||||||||||||||||||
Annual Incentive for Year of Termination | 0 | 0 | 0 | 210,229 | 210,229 | 0 | 0 | 0 | 204,663 | 204,663 | ||||||||||||||||||||||||||||||||||||||||
Cash LTIP-Vesting of Performance Units | 0 | 0 | 195,233 | (2) | 0 | 386,900 | 0 | 0 | 361,400 | (2) | 0 | 498,501 | ||||||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||
- Restricted Stock | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
- Restricted Stock Units | 0 | 0 | 11,025 | 0 | 39,690 | |||||||||||||||||||||||||||||||||||||||||||||
- Unexercisable Stock Options/SARs | 0 | 0 | 0 | (3) | 0 | 987 | 0 | 0 | 0 | (3) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Other Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits | 0 | 0 | 0 | 15,531 | 23,297 | |||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits including taxgross-up | 0 | 0 | 0 | 28,147 | 42,932 | |||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Other Benefits (other welfare benefits) | 0 | 0 | 0 | 0 | 12,856 | |||||||||||||||||||||||||||||||||||||||||||||
- Continuation of Other Benefits (car allowance; other welfare benefits) | 0 | 0 | 0 | 0 | 12,685 | |||||||||||||||||||||||||||||||||||||||||||||
- Financial Planning Services | 0 | 0 | 0 | 0 | 10,000 | 0 | 0 | 0 | 0 | 10,000 | ||||||||||||||||||||||||||||||||||||||||
- Outplacement Benefits | 0 | 0 | 0 | 9,500 | 0 | 0 | 0 | 0 | 9,000 | 0 | ||||||||||||||||||||||||||||||||||||||||
- Additional Company Contribution for Defined Contribution Plans Under the Management Continuity Agreement | 0 | 0 | 0 | 0 | 90,680 | 0 | 0 | 0 | 0 | 93,600 | ||||||||||||||||||||||||||||||||||||||||
Excise Tax Gross Up | 0 | 0 | 0 | 0 | 794,523 | 0 | 0 | 0 | 0 | 866,451 | ||||||||||||||||||||||||||||||||||||||||
SUB-TOTAL (Benefits Triggered Upon a Termination of Employment) | 0 | 0 | 195,233 | 855,260 | 2,924,472 | 0 | 0 | 372,425 | 881,810 | 3,208,522 | ||||||||||||||||||||||||||||||||||||||||
PLAN BALANCES/VESTED BENEFITS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution Plan(s) Balances (includes the Retirement Savings Plan and the Supplemental Retirement Benefit Plan)(4) | 740,440 | 740,440 | 740,440 | 740,440 | 740,440 | 597,384 | 597,384 | 597,384 | 597,384 | 597,384 | ||||||||||||||||||||||||||||||||||||||||
Present Value of Accrued Pension Benefit | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
TOTAL (Includes Benefits that are Vested and Currently Payable to the Executive) | 740,440 | 740,440 | 935,673 | 1,595,700 | 3,664,912 | 597,384 | 597,384 | 969,809 | 1,479,194 | 3,805,906 | ||||||||||||||||||||||||||||||||||||||||
(1) | Retirement is generally defined as the executive’s attainment of age 55 with 10 years of service. | |
(2) | Assumes achievement of performance goals at the target level of performance. | |
(3) | Assumes a constant share price of | |
(4) | This row consists mainly of amounts contributed by the executive to a retirement benefit plan of the Company that otherwise would have been paid to the executive and includes amounts disclosed in the “Aggregate Balance at Last FYE” column of the |
4752
Voluntary | |||||||||||||||||||||||||
Termination or | Involuntary | Involuntary | |||||||||||||||||||||||
Retirement(2) | Termination | Termination | |||||||||||||||||||||||
(No COC; or, | with Cause | Involuntary | without Cause or | ||||||||||||||||||||||
Following a COC, | (Including | Termination | for Good Reason | ||||||||||||||||||||||
without Good | Following a | without Cause | (Following a | ||||||||||||||||||||||
Reason) | COC) | Death/Disability | (No COC) | COC) | |||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||
Cash Severance Benefit (salary continuation, multiple of annual incentive payments | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
Annual Incentive for Year of Termination | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Cash LTIP-Vesting of Performance Units | 346,200 | 0 | 346,200 | (3) | 346,200 | 507,900 | |||||||||||||||||||
Severance Pay Under Belgian Law(4) | 0 | 0 | 0 | 1,398,478 | 1,398,478 | ||||||||||||||||||||
Equity Awards | |||||||||||||||||||||||||
- Restricted Stock Units | 11,025 | 0 | 11,025 | 11,025 | 39,690 | ||||||||||||||||||||
- Unexercisable Stock Options/SARs | 0 | 0 | 0 | (5) | 0 | 0 | |||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||
- Continuation of Medical, Dental and Vision Benefits | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
- Continuation of Other Benefits (car allowance; other welfare benefits) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
- Financial Planning Services | 0 | 0 | 0 | 0 | 8,000 | ||||||||||||||||||||
- Outplacement Benefits | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
- Additional Company Contribution for Defined Contribution Plans Under the Management Continuity Agreement | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Excise Tax Gross Up | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
SUB-TOTAL (Benefits Triggered Upon a Termination of Employment) | 357,225 | 0 | 357,225 | 1,755,703 | 1,954,068 | ||||||||||||||||||||
PLAN BALANCES/VESTED BENEFITS | |||||||||||||||||||||||||
Defined Contribution Plan(s) Balances (includes the Retirement Savings Plan and the Supplemental Retirement Benefit Plan)(6) | 466,334 | 466,334 | 466,334 | 466,334 | 466,334 | ||||||||||||||||||||
Present Value of Accrued Pension Benefit | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
TOTAL (Includes Benefits that are Vested and Currently Payable to the Executive) | 823,559 | 466,334 | 823,559 | 2,222,037 | 2,420,402 | ||||||||||||||||||||
(1) | Based on conversion rate of €1.00 = $1.4096. | |
(2) | Retirement is generally defined as the executive’s attainment of age 55 with 10 years of service. | |
(3) | Assumes achievement of performance goals at the target level of performance. | |
(4) | Assumes payments would be provided as required by Belgian law and not under the Executive Severance Plan or Mr. Baert’s Continuity Agreement. | |
(5) | Assumes a constant share price of $3.15, the closing sales price of our common shares on December 31, 2008. | |
(6) | This row consists mainly of amounts contributed by the executive to a retirement benefit plan of the Company that otherwise would have been paid to the executive and includes amounts disclosed in the “Aggregate Balance at Last FYE” column of the 2008 Nonqualified Deferred Compensation table. |
53
4854
49
• | ||
• | ||
• | ||
• | specify requirements for a quorum at a shareholders’ meeting; | |
• | prohibit shareholder or director actions from being authorized or taken without a meeting; | |
• | define terms of | |
• | require greater than a majority vote of shareholders to | |
• | establish requirements for a | |
• | delegate authority to | |
• |
50
51
52
53
54
55
56
57
58
59
Number of Securities | Weighted-Average | Number of Securities Remaining | ||||||||||
to be Issued Upon | Exercise Price of | Available for Future Issuance | ||||||||||
Exercise of | Outstanding | Under Equity Compensation | ||||||||||
Outstanding Options, | Options, Warrants | Plans (Excluding Securities | ||||||||||
Warrants and Rights | and Rights | Reflected in Column (a)) | ||||||||||
Plan Category | (a) | (b) | (c) | |||||||||
Equity compensation plans approved by security holders | 8,985,439 | 9.89 | 2,134,174 | (1) | ||||||||
Equity compensation plans not approved by security holders(2) | 158,712 | $ | 10.43 | 0 |
6055
61
56
62
57
6358
59
64
6560
A-1
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A-3
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A-5
A-6
A-7
A-8
A-9
A-10
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A-14
A-15
A-16
A-17
Electronic Voting InstructionsYou can vote by Internet or telephone! Available 24 hours a day, 7 days a week! Instead of mailing your | |||||||||||||
14, 2009. Vote by Internet | |||||||||||||
Vote by telephone | |||||||||||||
• Follow the instructions provided by the recorded message. | |||||||||||||
Using ablack ink pen, mark your votes with an Xas shown in this example. Please do not write outside the designated areas. |
1. | Election of Directors: | 01 | 02 | 03 | ||||||
04 | 05 | |||||||||
06 — Richard A. Lorraine 07 | 08 | 09 |
Mark here to vote FOR all nominees | ||||
Mark here to WITHHOLD vote from all nominees |
01 | 02 | 03 | 04 | 05 | 06 | 07 | 08 | 09 | ||||||||||||||||||||||||||||||||||
o | For All EXCEPT- To withhold a vote for one or more nominees, mark the box to the left and the corresponding numbered box(es) to the right. | o | o | o | o | o | o | o | o | o |
For | Against | Abstain | For | Against | Abstain | |||||||||||
2. | Proposal to approve the PolyOne Corporation 2008 Equity and Performance Incentive Plan. | o | o | o | 3. | Proposal to ratify the appointment of Ernst & Young LLP as PolyOne’s independent registered public accounting firm for the year ending December 31, 2008. | o | o | o | |||||||
B | Non-Voting Items |
Regulations to allow the Board of Directors to amend the Regulations to the extent permitted by law. Proposal to ratify the appointment of Ernst & Young LLP as PolyOne’s independent registered public accounting firm for the year ending December 31, 2009. Meeting Attendance Mark the box to the right if you plan to attend the Annual Meeting. | ||||||
Please sign exactly as name(s) appears hereon. Joint owners should each sign. When signing as attorney, executor, administrator, corporate officer, trustee, guardian, or custodian, please give full title. | ||||||||
Date (mm/dd/yyyy) — Please print date below. | Signature 1 — Please keep signature within the box. | Signature 2 — Please keep signature within the box. | ||||||
March ___, 2009 Dear Fellow Shareholders: You are cordially invited to attend the Annual Meeting of Shareholders to be held at 9:00 a.m. on Thursday, May 14, 2009, at the Wyndham Cleveland at Playhouse Square, 1260 Euclid Avenue, Cleveland, Ohio. Please review the Notice of the Annual Meeting and the Proxy Statement for information concerning the business to be conducted at the Annual Meeting and the nominees for election as Directors. Whether or not you plan to attend the Annual Meeting, please complete, sign, date and return your proxy card, or vote over the telephone or the Internet as soon as possible so that your shares can be voted at the meeting in accordance with your instructions. Your vote is very important. You may, of course, withdraw your proxy and change your vote prior to or at the Annual Meeting, by following the steps described in the Proxy Statement. I appreciate the strong support of our shareholders over the years and look forward to seeing you at the meeting. Sincerely, STEPHEN D. NEWLIN Chairman, President and Chief Executive Officer PolyOne Corporation ANNUAL MEETING OF SHAREHOLDERS, MAY 14, 2009 This proxy is Solicited on Behalf of the Corporation’s Board of Directors The undersigned hereby appoints Kenneth M. Smith, Lisa K. Kunkle and Robert M. Patterson, and each of them jointly and severally, Proxies, with full power of substitution, to vote, as designated on the reverse side, all common shares of PolyOne Corporation held of record by the undersigned on March 16, 2009, at the Annual Meeting of Shareholders to be held on May 14, 2009, or any adjournment thereof. The Board of Directors recommends a vote (1) “FOR” the election of the nominees to serve as Directors, (2) “FOR” the approval of an amendment to PolyOne Corporation’s Code of Regulations to allow the Board of Directors to amend the Regulations to the extent permitted by law and (3) “FOR” the ratification of the appointment of Ernst & Young LLP as PolyOne Corporation’s independent registered public accounting firm for the fiscal year ending December 31, 2009. The shares represented by this Proxy will be voted as specified on the reverse side. If no direction is given in the space provided on the reverse side, this proxy will be voted “FOR” the election of the nominees specified on the reverse side, “FOR” the approval of an amendment to PolyOne Corporation’s Code of Regulations to allow the Board of Directors to amend the Regulations to the extent permitted by law and “FOR” the ratification of the appointment of Ernst & Young LLP as PolyOne Corporation’s independent registered public accounting firm for the fiscal year ending December 31, 2009. PLEASE VOTE, DATE AND SIGN THIS PROXY ON THE OTHER SIDE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. |