To elect Dominic J. Addesso, John J. Amore, |
To appoint PricewaterhouseCoopers LLP, |
To approve, by non-binding advisory vote, |
To consider and act upon such other business, if any, as may properly come before the meeting and any and all adjournments thereof. |
By Order of the Board of Directors | |
Sanjoy Mukherjee | |
Executive Vice President, | |
General Counsel and Secretary |
PAGE | |||
GENERAL INFORMATION | 1 | ||
3 | |||
PROPOSAL NO. 1 – ELECTION OF DIRECTORS | |||
Information Concerning Director Nominees | |||
Information Concerning Executive Officers | |||
THE BOARD OF DIRECTORS AND ITS COMMITTEES | |||
Director Independence | |||
BOARD STRUCTURE AND RISK OVERSIGHT | |||
BOARD COMMITTEES | |||
Audit Committee | |||
Audit Committee Report | |||
Compensation Committee | |||
Compensation Committee Report | |||
Nominating and Governance Committee | |||
Code of Ethics for CEO and Senior Financial Officers | |||
Shareholder and Interested Party Communications with Directors | |||
COMMON SHARE OWNERSHIP BY DIRECTORS AND EXECUTIVE OFFICERS | |||
PRINCIPAL BENEFICIAL OWNERS OF COMMON SHARES | |||
DIRECTORS' COMPENSATION | |||
COMPENSATION DISCUSSION AND ANALYSIS | |||
Summary Compensation Table | |||
Outstanding Equity Awards at Fiscal Year-End | |||
CEO PAY RATIO DISCLOSURE | 72 | ||
EMPLOYMENT, CHANGE OF CONTROL AND OTHER AGREEMENTS | |||
Potential Payments Upon Termination or Change in Control | |||
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION | |||
PROPOSAL NO. 2 – APPOINTMENT OF INDEPENDENT AUDITORS | |||
PROPOSAL NO. 3 | |||
MISCELLANEOUS – GENERAL MATTERS | |||
Governance Profile Best Practice | Company Practice | |
✓ | Size of Board | 8 |
✓ | Number of Independent Directors | 6 |
✓ | Board Independence Standards | The Board has adopted director independence standards stricter than the listing standards of the NYSE |
✓ | Director Independence on Key Committees | The Board's Audit, Compensation and Nominating and Governance Committees are composed entirely of independent directors |
✓ | Separate Chairman and CEO | Yes |
✓ | Independent Lead Director | Yes |
✓ | Annual Election of All Directors | Yes |
✓ | Majority Voting for Directors | Yes |
✓ | Board Meeting Attendance | Each director or appointed alternate director attended 100% of Board meetings in |
✓ | Annual General Meeting Attendance | Director attendance expected at Annual General Meeting per Governance Guidelines, and 100% of directors attended the |
✓ | No Over-Boarding | companies Directors are prohibited from sitting on the boards of competitors |
✓ | Regular Executive Sessions of Non-Management Directors | Yes |
✓ | Shareholder Access | No minimum share ownership or holding thresholds necessary to nominate qualified director to |
✓ | Policy Prohibiting Insider Pledging or Hedging of Company's Stock | Yes |
✓ | Annual Equity Grant to Non-Employee Directors | Yes |
✓ | Annual Board and Performance Evaluations | Yes |
✓ | Clawback Policy | Yes |
✓ | Code of Business Conduct and Ethics for Directors and Executive Officers | Yes |
✓ | No Separate Change in Control Agreement for the CEO | CEO participates in the Senior Executive Change in Control Plan ("CIC Plan") along with the other Named Executive Officers |
✓ | No Automatic Accelerated Vesting of Equity Awards | Accelerated equity vesting provisions are not and will not be incorporated in the employment agreements of any Named Executive Officer |
✓ | Double Trigger for Change-in-Control | Yes |
Governance Profile Best Practice | Company Practice | |
✓ | No Excise Tax Assistance | No "gross-up" payments by the Company of any "golden parachute" excise taxes upon a change-in-control |
✓ | Say on Pay Frequency | Say on Pay Advisory Vote considered by Shareholders annually |
✓ | No Re-pricing of Options and SARs | The Board adheres to a strict policy of no re-pricing of Options and SARs |
✓ | Multi-Year Vesting Period of Options and Restricted Shares | 5-year vesting period for equity awards to executive officers except for performance shares which must meet key performance metrics over the course of 3 years prior to settlement 3-year vesting period for equity awards to Directors |
✓ | Clawback Policy | Clawback Policy covering current and former employees, including Named Executive Officers, providing for forfeiture and repayment of any incentive based compensation granted or paid to an individual during the period in which he or she engaged in material willful misconduct including but not limited to fraudulent misconduct |
✓ | Stock Ownership Guidelines for Executive Officers | Six times base salary for CEO; three times base salary for other Named Executive Officers |
✓ | Stock Ownership Guidelines for Non-Management Directors | |
✓ | Use of Performance Shares as Element of Term Incentive Compensation | Yes |
Proposal | Board's Voting Recommendations | Page |
Election of Director Nominees (Proposal 1) | FOR ALL DIRECTOR NOMINEES | |
Appointment of PricewaterhouseCoopers as Company Auditor (Proposal 2) | FOR | |
Compensation (Proposal 3) | FOR | |
· | Leadership: Demonstrated ability to hold significant leadership positions and effectively manage complex organizations is important to evaluating and developing key management talent. |
· | Insurance and/or Reinsurance Industry Experience: Experience in the insurance and/or reinsurance markets is critical to strategic planning and oversight of our business operations. |
· | Risk Management: Experience in identifying, assessing and managing risks is critical to oversight of current and emerging organizational and systemic risks in order to inform and adapt the Company's strategic planning. |
· | Regulatory: Understanding of the laws and regulations that impact our heavily regulated industry, as well as understanding the impact of government actions and public policy. Both areas are important to oversight of insurance operations. |
· | Finance and Accounting: Financial experience and literacy are essential for understanding and overseeing our financial reporting, investment performance and internal controls to ensure transparency and accuracy. |
· | Corporate Governance: Understanding of corporate governance matters is essential to ensuring effective governance of the Company and protecting shareholder interests. |
· | Business Operations: A practical understanding of developing, implementing and assessing our business operations and processes, and experience making strategic decisions, are critical to the oversight of our business, including the assessment of our operating plan, risk management and long-term sustainability strategy. |
· | Information Technology/Cybersecurity: A practical understanding of information systems and technology use in our business operations and processes, as well as a recognition of the risk management aspects of cyber risks and cyber security. |
· | International: Experience and knowledge of global insurance and financial markets is especially important in understanding and reviewing our business and strategy. |
Age: 64 Director Since: September 19, 2012 Non-Independent Committees: ·Investment Policy ·Underwriting ·Executive |
· | Executive Leadership | · | Corporate Governance |
· | Insurance/Reinsurance Industry Experience | · | International |
· | Finance and Accounting | · | Risk Management |
· | Business Operations | · | Regulatory |
· | Investments | · | Information Technology/Cyber Security |
· | Mergers & Acquisitions |
Age: 69 Director Since: September 19, 2012 Independent Committees: ·Audit ·Compensation (Chair) ·Nominating and Governance ·Underwriting |
· | Executive Leadership |
· | Insurance/Reinsurance Industry Experience |
· | Finance and Accounting |
· | Corporate Governance |
· | Business Operations |
· | International |
· | Risk Management |
Age: 65 Director Since: March 12, 1996 Independent Committees: ·Audit ·Compensation ·Executive ·Nominating and Governance (Chair) ·Underwriting |
· | Executive Leadership |
· | Insurance/Reinsurance Industry Experience |
· | Finance and Accounting |
· | Investments |
· | Merger & Acquisition |
· | Corporate Governance |
· | Business Operations |
· | Risk Management |
Age: 58 Director Since: May 18, 2016 Independent Committees: ·Audit ·Compensation ·Nominating and Governance ·Investment Policy |
· | Leadership |
· | Insurance/Reinsurance Industry Experience |
· | Corporate Governance |
· | Risk Management |
· | Finance and Accounting |
· | Investments |
· | International |
· | Business Operations |
· | Regulatory |
Age: 67 Director Since: May 14, 2014 Independent Committees: ·Audit ·Compensation ·Nominating and Governance ·Underwriting (Chair) |
· | Leadership |
· | Insurance/Reinsurance Industry Experience |
· | Corporate Governance |
· | Finance and Accounting |
· | Risk Management |
· | Business Operations |
· | International |
· | Information Technology/Cyber Security |
Age: 71 Director Since: February 24, 2010 Independent Committees: ·Audit (Chair) ·Compensation ·Nominating and Governance |
· | Leadership |
· | Insurance/Reinsurance Industry Experience |
· | Corporate Governance |
· | Finance and Accounting |
· | Regulatory |
· | International |
· | Legal |
· | Mergers & Acquisitions |
Age: 69 Director Since: March 12, 1996 Non-Independent Committees: ·Executive ·Investment Policy |
· | Leadership |
· | Insurance/Reinsurance Industry Experience |
· | Business Operations |
· | Corporate Governance |
· | Finance and Accounting |
· | Mergers & Acquisitions |
· | Investment |
· | Regulatory |
· | International |
· | Risk Management |
Age: 73 Director Since: May 22, 2003 Independent Committees: ·Audit ·Compensation ·Executive ·Investment Policy ·Nominating and Governance |
· | Leadership |
· | Insurance/Reinsurance Industry Experience |
· | Business Operations |
· | Finance and Accounting |
· | Investments |
· | Mergers & Acquisitions |
· | Corporate Governance |
· | Risk Management |
· | Audit Committee |
· | Nominating and Governance |
· | Compensation Committee |
· | Executive Committee |
· | Investment Policy Committee |
· | Underwriting Committee |
Name | Audit | Compensation | Executive | Investment Policy | Nominating and Governance | Underwriting Committee | Independent | Audit | Compensation | Executive | Investment Policy | Nominating and Governance | Underwriting Committee | Independent |
Dominic J. Addesso | X | X | X | X | ||||||||||
John J. Amore | X | Chair | X | X | Chair | X | ||||||||
John R. Dunne | X | X | X | X | ||||||||||
William F. Galtney, Jr. | X | X | X | Chair | X | X | Chair | X | ||||||
John A. Graf | X | X | X | |||||||||||
Gerri Losquadro | X | X | X | Chair | X | X | X | Chair | X | |||||
Roger M. Singer | Chair | X | X | X | Chair | X | X | X | ||||||
Joseph V. Taranto | X | X | X | |||||||||||
John A. Weber | X | X | X | X | X | X | X | |||||||
Meetings | 4 | 4 | 0 | 4 | 4 | 0 | 4 |
· | no director who is an employee, or whose immediate family member is an executive officer of the Company, is deemed independent until three years after the end of such employment relationship; |
· | no director is independent |
(i) | is a current partner or employee of a firm that is the Company's internal or external auditor; |
(ii) | has an immediate family member who is a current partner of such firm; |
(iii) | has an immediate family member who is a current employee of such firm and personally works on the Company's audit; or |
(iv) | was or had an immediate family member who was within the last three years a partner or employee of such firm and personally worked on the Company's audit within that time; |
· | no director who is employed, or whose immediate family member is employed, as an executive officer of another company where any of our present executives serve on that company's compensation committee is deemed independent until three years after the end of such service or the employment relationship; |
· | no director who is an executive officer or an employee, or whose immediate family member is an executive officer, of a company that makes payments to, or receives payments from, the Company for property or services in an amount that, in any single year, exceeds $10,000 is deemed independent; |
· | no director who has a personal services contract with the Company, or any member of the Company's senior management, is independent; |
· | no director who is affiliated with a not-for-profit entity that receives significant contributions from the Company is independent; and |
· | no director who is employed by a public company at which an executive officer of the Company serves as a director is independent. |
· | no director who is a member of the Audit Committee shall be deemed independent if such director is affiliated with the Company or any of its subsidiaries in any capacity, other than in such director's capacity as a member of our Board of Directors, the Audit Committee or any other Board committee or as an independent subsidiary director; and |
· | no director who is a member of the Audit Committee shall be deemed independent if such director receives, directly or indirectly, any consulting, advisory or other compensatory fee from the Company or any of its subsidiaries, other than fees received in such director's capacity as a member of our Board of Directors, the Audit Committee or any other Board committee, or as an independent subsidiary director, and fixed amounts of compensation under a retirement plan (including deferred compensation) for prior service with the Company (provided such compensation is not contingent in any way on continued service). |
· | no director shall be considered independent who: |
(i) | is currently an officer (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934 (the "Exchange Act")) of the Company or a subsidiary of the Company, or otherwise employed by the Company or subsidiary of the Company; |
(ii) | receives compensation, either directly or indirectly, from the Company or a subsidiary of the Company, for services rendered as a consultant or in any capacity other than as a director, except for an amount that does not exceed the dollar amount for which disclosure would be required pursuant to Item 404(a) of Regulation S-K; or |
(iii) | possesses an interest in any other transaction for which disclosure would be required pursuant to Item 404(a) of Regulation S-K. |
· | no director who does not meet the requirements of an "outside director" as defined in Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code"), shall be considered independent. |
· | Coordinating executive sessions of the independent members of the Board without management present; |
· | Authorization to call meetings of the independent directors; |
· | Serving as a liaison between the Chairman and the independent directors and providing a forum for independent director feedback at executive sessions; |
· | Communicating regularly with the CEO and the other directors on matters of Board governance; |
· | Assisting in Board meeting agenda preparation in consultation with the Chairman; |
· | Overseeing the annual Board self-evaluation process including individual director evaluations and facilitating discussion of the results; |
· | Assuring that all Board members carry out their responsibilities as directors; |
· | If requested and, when appropriate, consultation and direct communication with major shareholders as the independent representative of the Board. |
2015 | 2014 | |||||||
Audit Fees (1) | $ | 3,711,514 | $ | 3,663,126 | ||||
Audit-Related Fees (2) | 132,578 | 115,700 | ||||||
Tax Fees (3) | 940,660 | 150,000 | ||||||
All Other Fees (4) | 10,196 | 8,227 |
2017 | 2016 | |||||||
Audit Fees(1) | $ | 4,746,370 | $ | 3,968,203 | ||||
Audit-Related Fees(2) | 227,594 | 233,990 | ||||||
Tax Fees(3) | 925,479 | 382,161 | ||||||
All Other Fees(4) | 21,243 | 10,413 |
(1) | Audit fees include the annual audit and quarterly financial statement reviews, internal control audit (as required by the Sarbanes Oxley Act of 2002), subsidiary audits, and procedures required to be performed by the independent auditors to be able to form an opinion on the Company's consolidated financial statements. Audit fees also include statutory audits or financial audits of subsidiaries or affiliates of the Company and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings. |
(2) | Audit-related fees include assurance and related services that are reasonably related to the performance of the audit or review of the Company's financial statements; accounting consultations related to accounting, financial reporting or disclosure matters not classified as "audit services"; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; financial audits of employee benefit plans; agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters and assistance with internal control reporting requirements. |
(3) | Tax fees include tax compliance, tax planning and tax advice and may be granted general pre-approval by the Audit Committee. |
(4) | All other fees are for accounting and research subscriptions. |
Roger M. Singer, Chairman |
John J. Amore |
William F. Galtney, Jr. |
John A. Graf |
Gerri Losquadro |
John A. Weber |
John J. Amore, Chairman |
William F. Galtney, Jr. |
John A. Graf |
Gerri Losquadro |
Roger M. Singer |
John A. Weber |
William F. Galtney, Jr., Chairman |
John J. Amore |
John A. Graf |
Gerri Losquadro |
Roger M. Singer |
John A. Weber |
Amount and Nature of | Percent of | |||||
Name of Beneficial Owner | Beneficial Ownership | Class(13) | ||||
John J. Amore | 15,626 | (1) | * | |||
William F. Galtney, Jr. | 68,726 | (2) | * | |||
John A. Graf | 7,050 | (3) | * | |||
Gerri Losquadro | 8,767 | (4) | * | |||
Roger M. Singer | 12,832 | (5) | * | |||
Joseph V. Taranto | 337,508 | (6) | * | |||
John A. Weber | 12,095 | (7) | * | |||
Dominic J. Addesso | 89,992 | (8) | * | |||
John P. Doucette | 23,986 | (9) | * | |||
Craig Howie | 16,984 | (10) | * | |||
Sanjoy Mukherjee | 32,546 | (11) | * | |||
Jonathan Zaffino | 8,104 | (12) | * | |||
All directors, nominees and executive officers as a group (12 persons) | 634,216 | 1.3 |
Amount and Nature of | Percent of | |||||
Name of Beneficial Owner | Beneficial Ownership | Class (13) | ||||
John J. Amore | 11,427 | (1) | * | |||
John R. Dunne | 11,379 | (2) | * | |||
William F. Galtney, Jr. | 62,126 | (3) | * | |||
John A. Graf | 0 | * | ||||
Gerri Losquadro | 5,267 | (4) | * | |||
Roger M. Singer | 10,332 | (5) | * | |||
Joseph V. Taranto | 334,008 | (6) | * | |||
John A. Weber | 12,506 | (7) | * | |||
Dominic J. Addesso | 78,092 | (8) | * | |||
Mark S. de Saram | 21,862 | (9) | * | |||
John P. Doucette | 25,105 | (10) | * | |||
Craig Howie | 16,109 | (11) | * | |||
Sanjoy Mukherjee | 30,379 | (12) | * | |||
All directors, nominees and executive officers as a group (12 persons) | 618,592 | 1.3 |
* | Less than 1% |
(1) | Includes 454 shares issuable upon the exercise of share options within 60 days of March 20, |
(2) | Includes |
(3) | Includes 3,348 restricted shares issued to Mr. Graf under the 2003 Directors Plan and 172 restricted shares issued under the Company's 2009 Non Employer Director Equity Compensation Plan ("2009 Directors Plan") which may not be sold or transferred until the vesting requirements are satisfied. |
(4) | Includes |
(5) | Includes |
(6) | Includes |
(7) | Includes |
(8) | Includes |
(9) | Includes |
Number of Shares | Percent of | ||||
Name and Address of Beneficial Owner | Beneficially Owned | Class | |||
Everest International Reinsurance, Ltd. | 9,719,971 | (1) | 19.2 | ||
Seon Place, 141 Front Street, 4th Floor | |||||
Hamilton HM 19, Bermuda | |||||
The Vanguard Group | 4,130,538 | (2) | 10.1 | ||
100 Vanguard Boulevard | |||||
Malvern, Pennsylvania 19355 | |||||
BlackRock, Inc. | 3,261,859 | (3) | 7.9 | ||
55 East 52nd Street | |||||
New York, New York 10022 | |||||
State Street Corporation | 2,181,535 | (4) | 5.3 | ||
One Lincoln Street | |||||
Boston, Massachusetts 02111 |
Number of Shares | Percent of | ||||
Name and Address of Beneficial Owner | Beneficially Owned | Class (5) | |||
Everest International Reinsurance, Ltd. | 9,719,971 | (1) | 18.5 | ||
Seon Place, 141 Front Street, 4th Floor | |||||
Hamilton HM 19, Bermuda | |||||
BlackRock, Inc. | 3,924,421 | (2) | 9.1 | ||
55 East 52nd Street | |||||
New York, New York 10022 | |||||
The Vanguard Group | 2,754,684 | (3) | 6.4 | ||
100 Vanguard Boulevard | |||||
Malvern, Pennsylvania 19355 |
(1) | Everest International Reinsurance, Ltd. ("International Re") a direct wholly-owned subsidiary of the Company, obtained the Company's Common Shares from Everest Preferred International Holdings ("Preferred Holdings"), a direct wholly owned subsidiary of the Company, in exchange for preferred stock issued by International Re. Preferred Holdings had obtained the Company's common shares from Everest Reinsurance Holdings Inc. in exchange for preferred stock issued by International Re. International Re had sole power to vote and direct the disposition of 9,719,971 Common Shares as of December 31, |
(2) |
The Vanguard Group reports in its Schedule 13G that it has sole power to vote |
(3) | BlackRock, Inc. reports in its Schedule 13G that it has sole power to vote or direct the vote of 2,834,775 Common Shares and sole dispositive power with respect to 3,261,859 Common Shares. |
(4) |
Change in | Change in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Value | Pension Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
and Nonqualified | and Nonqualified | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fees | Non-Equity | Deferred | Fees | Non-Equity | Deferred | |||||||||||||||||||||||||||||||||||||||||||||||||||
Earned or | Share | Option | Incentive Plan | Compensation | All Other | Earned or | Share | Option | Incentive Plan | Compensation | All Other | |||||||||||||||||||||||||||||||||||||||||||||
Name | Paid in Cash (1) | Awards (2) | Awards (3) | Compensation | Earnings | Compensation (4) | Total | Paid in Cash(1) | Awards(2) | Awards(3) | Compensation | Earnings | Compensation(4) | Total | ||||||||||||||||||||||||||||||||||||||||||
John J. Amore | $ | 75,000 | $ | 357,680 | $ | — | $ | — | $ | — | $ | 17,286 | 449,966 | $ | 75,000 | $ | 468,060 | $ | — | $ | — | $ | — | $ | 20,195 | $ | 563,255 | |||||||||||||||||||||||||||||
John R. Dunne | 75,000 | 357,680 | — | — | — | 15,992 | 448,672 | 47,184 | 468,060 | — | — | — | 4,999 | 520,243 | ||||||||||||||||||||||||||||||||||||||||||
William F. Galtney, Jr. | 75,000 | 357,680 | — | — | — | 15,992 | 448,672 | 75,000 | 468,060 | — | — | — | 20,195 | 563,255 | ||||||||||||||||||||||||||||||||||||||||||
John A. Graf | 75,000 | 468,060 | 14,859 | 557,919 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gerri Losquadro | 75,000 | 357,680 | — | — | — | 11,781 | 444,461 | 75,000 | 468,060 | — | — | — | 20,724 | 563,784 | ||||||||||||||||||||||||||||||||||||||||||
Roger M. Singer | 75,000 | 357,680 | — | — | — | 23,492 | 456,172 | 75,000 | 468,060 | — | — | — | 30,195 | 573,255 | ||||||||||||||||||||||||||||||||||||||||||
Joseph V. Taranto | 1,575,000 | 357,680 | — | — | — | 13,328 | 1,946,008 | 1,575,000 | 468,060 | — | — | — | 20,195 | 2,063,255 | ||||||||||||||||||||||||||||||||||||||||||
John A. Weber | 75,000 | 357,680 | — | — | — | 23,492 | 456,172 | 75,000 | 468,060 | — | — | — | 30,195 | 573,255 |
(1) | During |
(2) | The amount shown is the aggregate grant date fair value of the |
(3) | As of December 31, |
(4) | Dividends paid on each director's restricted shares. For Messrs. Singer and Weber, also includes |
(5) | John R. Dunne retired from the Board effective May 17, 2017. |
· | Gross written premiums grew by 19% to $7.2 billion. |
· | The Company earned |
· | Book value per share increased |
· | The Company returned |
We paid quarterly dividends totaling |
We returned |
Everest Re total return* over S&P 500: | |||
2014 - 2015 | 2010 - 2015 | 2005 - 2015 | IPO* - 2015 |
9% | 58% | 19% | 641% |
· |
· | CEO and all participants in the CIC Plan are subject to double-trigger provisions |
· | No "gross-up" payments by the Company of any "golden parachute" excise taxes upon a change-in-control |
· | No accelerated equity vesting in CEO's employment agreement, except in the limited circumstance of a change-in-control |
· | Incentive cash bonuses for all Named Executive Officers tied to specific Company financial performance metrics |
· | For |
· | Say on Pay Advisory Vote considered by shareholders annually |
· | Stock ownership and retention guidelines for executive vice presidents and above |
· | Compensation of executive officers is based on the level of job responsibility, contribution to the performance of the Company, individual performance in light of general economic and industry conditions, teamwork, resourcefulness and ability to manage our business. |
· | Compensation awards and levels are intended to be reasonably competitive with compensation paid by organizations of similar stature to both motivate the Company's key employees and minimize the potential for disruptive and costly key employee turnover. |
· | Compensation is intended to align the interests of the executive officers with those of the Company's shareholders by basing a significant part of total compensation on our executives' contributions over time to the generation of shareholder value. |
COMPONENT | FORM | KEY FEATURES | |
Base Salary | Cash | · | |
· | but varies with individual skills, experience, responsibilities and | ||
performance | |||
· | Represents approximately | ||
Non-Equity Incentive Compensation | Cash | · | ROE. Final awards also consider achievement of individual non- financial goals |
| |||
· | Annual Incentive Plan ("Executive Incentive Plan") for | ||
maximum bonus potential available for award to any participant in the Plan | |||
COMPONENT | FORM | KEY FEATURES | |
Non-Equity Incentive Compensation (continued) | Cash | · | |
· | |||
· | measures, coupled with individual performance factors | ||
· | Represents approximately | ||
Performance | Equity | · | per share relative to our peer group over a three-year period |
· | depending on performance after 3 years | ||
· | financial measures and align our NEOs' interests with those of our shareholders | ||
| |||
· | Represents approximately | ||
Restricted Shares | Equity | · | year period |
· | risk-taking, align our NEOs' interests with shareholders' | ||
interests and promote retention | |||
· | Represents approximately |
Alleghany Corporation | Allied World Assurance Company Holdings, AG4 | |
Arch Capital Group, Ltd. | ||
Aspen Insurance Holdings, Limited | AXIS Capital Holdings, Limited | Chubb Limited |
Endurance Specialty Holdings Ltd.5 | Markel Corporation | |
Validus Holdings, Ltd. | ||
W.R. Berkley Corporation | XL Group, plc |
2015 INCENTIVE-BASED BONUS TARGETS AND AWARDS | ||||||||||||||||
Named Executive Officer | Target Incentive Bonus (% Base Salary) | Target Incentive Bonus | Potential Maximum Incentive Bonus | Actual Bonus Award | ||||||||||||
Dominic J. Addesso (CEO) | 125% | $ | 1,250,000 | $ | 3,500,000 | $ | 2,900,000 | |||||||||
Craig W. Howie (CFO) | 100% | $ | 515,000 | $ | 1,030,000 | $ | 760,000 | |||||||||
John P. Doucette (CUO) | 100% | $ | 675,000 | $ | 1,350,000 | $ | 1,150,000 | |||||||||
Mark S. de Saram CEO of Bermuda Re | 100% | $ | 620,000 | $ | 1,240,000 | $ | 775,000 | |||||||||
Sanjoy Mukherjee (GC) | 100% | $ | 470,000 | $ | 940,000 | $ | 700,000 | |||||||||
TOTAL | $ | 3,530,000 | $ | 8,060,000 | $ | 6,285,000 | ||||||||||
% Net After-Tax Operating Income | .3 | % | .7 | % | .57 | % |
2017 INCENTIVE-BASED BONUS TARGETS AND AWARDS | ||||||||||||||||
Named Executive Officer | Target Incentive Bonus (% Base Salary) | Target Incentive Bonus | Potential Maximum Incentive Bonus | Actual Bonus Award | ||||||||||||
Dominic J. Addesso (CEO) | 125% | $ | 1,250,000 | $ | 3,500,000 | $ | 1,800,000 | |||||||||
John P. Doucette President and CEO of the Reinsurance Division | 100% | $ | 750,000 | $ | 1,500,000 | $ | 850,000 | |||||||||
Craig W. Howie (CFO) | 100% | $ | 542,000 | $ | 1,084,000 | $ | 550,000 | |||||||||
Sanjoy Mukherjee GC and CEO of Bermuda Re | 100% | $ | 512,000 | $ | 1,024,000 | $ | 550,000 | |||||||||
Jonathan M. Zaffino President and CEO of the Everest Insurance® Division | 100% | $ | 500,000 | $ | 1,000,000 | $ | 400,000 | |||||||||
TOTAL | $ | 3,554,000 | $ | 8,108,000 | $ | 4,150,000 |
Target Award | NAMED EXECUTIVE OFFICERS | ||||
Dom Addesso | John Doucette | Mark DeSaram | Craig Howie | Sanjoy Mukherjee | |
5,595 | 1,510 | 1,390 | 1,155 | 1,055 |
NAMED EXECUTIVE OFFICERS | |||||
Target Award | Dom Addesso | John Doucette | Craig Howie | Sanjoy Mukherjee | Jonathan Zaffino |
2015 PSU | 5,595 | 1,510 | 1,155 | 1,055 | — |
2016 PSU | 6,455 | 1,485 | 1,140 | 1,080 | 970 |
2017 PSU | 6,410 | 1,285 | 930 | 880 | 855 |
TARGET MEASURES | |||||||
Award Multiplier | |||||||
Weight | Performance Year | Target | 0% | 25% | 100% | 175% | |
Operating ROE | 50.0% | ||||||
2015 | 11.0% | <4.0% | 4% | 11% | >=17% | ||
2016 | — | — | — | — | — | ||
2017 | — | — | — | — | — | ||
Award Multiplier | |||||||
Weight | Performance Period | Target | 0.0% | 25% | 100% | 175% | |
3Yr Relative Change in BVPS to Peers | 50.0% | 2015 - 2017 | Median | <26th %tile | 26th %tile | Median | >=75th %tile |
2015 PSU TARGET MEASURES | |||||||
Award Multiplier | |||||||
Weight | Performance Year | Target ROE | 0% | 25% | 100% | 175% | |
Operating ROE | 50.0% | ||||||
2015 | 11.0% | <4.0% | 4% | 11% | >=17% | ||
2016 | 10.5% | <3.5% | 3.5% | 10.5% | >=16.5% | ||
2017 | 10% | <3% | 3% | 10% | >=15% | ||
Award Multiplier | |||||||
Weight | Performance Period | Target | 0.0% | 25% | 100% | 175% | |
3Yr Relative Change in BVPS to Peers | 50.0% | 2015 - 2017 | Median | <26th %tile | 26th %tile | Median | >=75th %tile |
2016 PSU TARGET MEASURES | |||||||
Award Multiplier | |||||||
Weight | Performance Year | Target ROE | 0% | 25% | 100% | 175% | |
Operating ROE | 50.0% | ||||||
2016 | 10.5% | <3.5% | 3.5% | 10.5% | >=16.5% | ||
2017 | 10% | <3% | 3% | 10% | >=15% | ||
Award Multiplier | |||||||
Weight | Performance Period | Target | 0.0% | 25% | 100% | 175% | |
3Yr Relative Change in BVPS to Peers | 50.0% | 2016 - 2018 | Median | <26th %tile | 26th %tile | Median | >=75th %tile |
2017 PSU TARGET MEASURES | |||||||
Award Multiplier | |||||||
Weight | Performance Year | Target ROE | 0% | 25% | 100% | 175% | |
Operating ROE | 50.0% | ||||||
2017 | 10% | <3% | 3% | 10% | >=15% | ||
Award Multiplier | |||||||
Weight | Performance Period | Target | 0.0% | 25% | 100% | 175% | |
3Yr Relative Change in BVPS to Peers | 50.0% | 2017 - 2019 | Median | <26th %tile | 26th %tile | Median | >=75th %tile |
2015 OPERATING ROE | Dominic Addesso | John Doucette | Mark DeSaram | Craig Howie | Sanjoy Mukherjee | |||
Target Award | Target Award | Target Award | Target Award | Target Award | ||||
Target | Actual | 2015 Earn Out % | Target Multiplier | 5595 | 1510 | 1390 | 1155 | 1055 |
Earned PSU | Earned PSU | Earned PSU | Earned PSU | Earned PSU | ||||
11.0% | 15.0% | 16.7% | 150.0% | 1399 | 378 | 348 | 289 | 264 |
OPERATING ROE | Dominic Addesso | John Doucette | Craig Howie | Sanjoy Mukherjee | Jonathan Zaffino | ||||
Target Award | Target Award | Target Award | Target Award | Target Award | |||||
5,595 | 1,510 | 1,155 | 1,055 | 0 | |||||
Target | Actual | Earn Out % | Target Multiplier | Earned PSU | Earned PSU | Earned PSU | Earned PSU | Earned PSU | |
2015 Period | 11.0% | 15.0% | 16.7% | 150.0% | 1,399 | 378 | 289 | 264 | 0 |
2016 Period | 10.5% | 12.8% | 16.7% | 128.8% | 1,201 | 324 | 248 | 226 | 0 |
2017 Period | 10% | 4.6% | 16.7% | 42.1% | 394 | 106 | 81 | 74 | 0 |
OPERATING ROE | Dominic Addesso | John Doucette | Craig Howie | Sanjoy Mukherjee | Jonathan Zaffino | ||||
Target Award | Target Award | Target Award | Target Award | Target Award | |||||
6,455 | 1,485 | 1,140 | 1,080 | 970 | |||||
Target | Actual | Earn Out % | Target Multiplier | Earned PSU | Earned PSU | Earned PSU | Earned PSU | Earned PSU | |
2016 Period | 10.5% | 12.8% | 16.7% | 128.8% | 1,388 | 319 | 245 | 232 | 209 |
2017 Period | 10% | 4.6% | 16.7% | 42.1% | 454 | 105 | 80 | 76 | 68 |
OPERATING ROE | Dominic Addesso | John Doucette | Craig Howie | Sanjoy Mukherjee | Jonathan Zaffino | ||||
Target Award | Target Award | Target Award | Target Award | Target Award | |||||
6,410 | 1,285 | 930 | 880 | 855 | |||||
Target | Actual | Earn Out % | Target Multiplier | Earned PSU | Earned PSU | Earned PSU | Earned PSU | Earned PSU | |
2017 Period | 10% | 4.6% | 16.7% | 42.1% | 451 | 90 | 65 | 62 | 60 |
Alleghany Corporation | Allied World Assurance Company Holdings, AG6 | |
Arch Capital Group, Ltd. | ||
Aspen Insurance Holdings, Limited | AXIS Capital Holdings, Limited | Chubb Limited |
Endurance Specialty Holdings Ltd.7 | Markel Corporation | |
Validus Holdings, Ltd. | ||
W.R. Berkley Corporation | XL Group, plc |
2015 PSUs (BVPS) | Dominic Addesso | John Doucette | Craig Howie | Sanjoy Mukherjee | Jonathan Zaffino | ||||
Target Award | Target Award | Target Award | Target Award | Target Award | |||||
5,595 | 1,510 | 1,155 | 1,055 | 0 | |||||
Weight | Award Multiplier | Earned PSU | Earned PSU | Earned PSU | Earned PSU | Earned PSU | |||
2015-2017 Period | 50.0% | 160.0% | 4,476 | 1,208 | 924 | 844 | 0 |
Dominic Addesso | John Doucette | Craig Howie | Sanjoy Mukherjee | |
2015 PSU Target Award | 5,595 | 1,510 | 1,155 | 1,055 |
Total 2015 Operating ROE PSUs Earned | 2,993 | 808 | 618 | 564 |
Total 2015 BVPS PSUs Earned | 4,476 | 1,208 | 924 | 844 |
Total PSUs Earned | 7,469 | 2,016 | 1,542 | 1,408 |
investments in our business in the form of human capital and intellectual resources; |
diversification of risk within our insurance and reinsurance portfolios; |
capital management strategies; |
long-term strategic growth initiatives; and |
creativity in the development of new products. |
· | executive officer's performance against individual goals; |
· | individual effort in achieving company goals; |
· | effectiveness in fostering and working within a team-oriented approach; |
· | creativity, demonstrated leadership traits and future potential; |
· | level of experience; |
· | areas of responsibility; and |
· | total compensation relative to the executive's internal peers. |
Name | Title/ Business Unit | Annual Base Salary | Annual Cash Bonus | Annual Time-Vested Equity Award | Annual Performance- Based Equity Award | Total Direct Compensation | |||||||||||||||
Dominic J. Addesso | CEO and President | $ | 1,000,000 | $ | 1,800,000 | $ | 2,500,000 | $ | 1,500,000 | $ | 6,800,000 | ||||||||||
John P. Doucette | Executive Vice President and President and CEO of the Reinsurance Division | 750,000 | 850,000 | 663,000 | 442,000 | 2,705,000 | |||||||||||||||
Craig Howie | Executive Vice President and Chief Financial Officer | 542,000 | 550,000 | 448,000 | 224,000 | 1,764,000 | |||||||||||||||
Sanjoy Mukherjee | Executive Vice President and General Counsel, Secretary and Managing Director and CEO of Bermuda Re | 512,000 | 550,000 | 414,000 | 276,000 | 1,752,000 | |||||||||||||||
Jonathan Zaffino | Executive Vice President and President and CEO of the Everest Insurance® Division | 500,000 | 400,000 | 480,000 | 240,000 | 1,620,000 |
Name | Title/ Business Unit | Annual Base Salary | Annual Cash Bonus | Annual Time-Vested Equity Award | Annual Performance- Based Equity Award | Total Direct Compensation | |||||||||||||||
Dominic J. Addesso | CEO and President | $ | 1,000,000 | $ | 2,900,000 | $ | 2,400,000 | $ | 1,200,000 | $ | 7,500,00 | ||||||||||
Mark S. de Saram | Executive Vice President and Managing Director and CEO of Bermuda Re | 620,000 | 775,000 | 0 | 0 | 1,395,000 | |||||||||||||||
John P. Doucette | Executive Vice President and Chief Underwriting Officer | 675,000 | 1,150,000 | 552,000 | 276,000 | 2,653,000 | |||||||||||||||
Craig Howie | Executive Vice President and Chief Financial Officer | 500,000 | 760,000 | 425,000 | 212,000 | 1,897,000 | |||||||||||||||
Sanjoy Mukherjee | Executive Vice President and General Counsel and Secretary | 450,000 | 700,000 | 400,000 | 200,000 | 1,750,000 | |||||||||||||||
· | the 2017 operating plan, |
· | the average operating return on equity achieved over several market cycles, |
· | the average operating return on equity among the Company peer group, |
· | the fact that the Company operates in an increasingly competitive and challenging market cycle, highlighted by non-traditional capital providers and a historically low interest rate environment. |
Performance Level | Financial Performance Measure (ROE) | Potential Maximum Bonus |
Maximum | >=15% | 350% of Base Salary |
Target | 10% | 125% of Base Salary |
Threshold | 3% | 50% of Base Salary |
Below Threshold | <3% | Zero |
Performance Measure | 2015 ROE Planned Results (Target) | 2015 Actual Results | Tiered Base Salary Amount | Percentage of Base Salary Maximum Bonus | Resulting Maximum Bonus Potential | 2017 Plan ROE (Target) | 2017 Normalized ROE | Tiered Base Salary Amount | Percentage of Base Salary Maximum Bonus | Resulting Maximum Bonus Potential | |||||||||||||||||
Operating ROE | 11% | 15% ROE | $ | 2,750,000 | 70 | % | $ | 1,925,000 | 10% | 10.9% | $1,655,000 | 70% | $1,158,500 |
Non-Financial Performance Measure | Maximum Bonus Potential | |||
30% of 350% Base Salary Bonus Maximum | $ | 1,050,000 |
Performance Measure | 2015 ROE Planned Results (Target) | 2015 Actual Results | Resulting Maximum Bonus Potential | 2017 Plan ROE (Target) | 2017 Normalized ROE | Resulting Maximum Bonus Potential | |||||||||||
Operating ROE | 11% | 15% ROE | $ | 1,925,000 | 10% | 10.9% ROE | $1,158,500 | ||||||||||
Non-Financial | $ | 1,050,000 | $1,050,000 | ||||||||||||||
Total | $ | 2,975,000 | |||||||||||||||
Total Potential Cash Bonus | $2,208,500 |
Accomplishments |
Demonstrated leadership as CEO including active oversight of the Company's day-to-day operations across all business segments |
Oversaw continued expansion of the Company's insurance operations executive team and diversification of business lines and growth |
Successfully managed the Company's natural peril catastrophe exposure within the Board's Risk Appetite Statement |
Oversaw overall strategy to diversify risk portfolio |
Oversaw development and implementation of succession plan process at senior executive level for the Company and the Company's affiliates |
Achieved annual budget objectives and oversaw coordination of all business units in putting together the operating plan |
Continued to build relationships with the Company's long-term shareholders |
Maintained professional relationships with Company's regulators and rating agencies |
Oversaw continued modernization of Company's information technology systems and improvements in underwriting analytics and business processes |
Oversaw |
Performance Level | Financial Performance Measure(ROE) | Potential Maximum Bonus | JOHN DOUCETTE | CRAIG HOWIE | MARK DeSARAM | SANJOY MUKHERJEE | Financial Performance Measure(ROE) | Potential Maximum Bonus | �� | JOHN DOUCETTE | CRAIG HOWIE | SANJOY MUKHERJEE | JONATHAN ZAFFINO | |||||||||||||||||||||||||||
Maximum | >=17.0% | 200% Base Salary | $ | 1,350,000 | $ | 1,030,000 | $ | 1,240,000 | $ | 940,000 | >=15% | 200% Base Salary | $ | 1,500,000 | $ | 1,084,000 | $ | 1,024,000 | $ | 1,000,000 | ||||||||||||||||||||
Target | 11.0% | 100% Base Salary | $ | 675,000 | $ | 515,000 | $ | 620,000 | $ | 470,000 | 10% | 100% Base Salary | $ | 750,000 | $ | 542,000 | $ | 512,000 | $ | 500,000 | ||||||||||||||||||||
Threshold | 4.0% | 25% Base Salary | $ | 168,750 | $ | 128,750 | $ | 155,000 | $ | 117,500 | 3% | 25% Base Salary | $ | 187,500 | $ | 135,500 | $ | 128,000 | $ | 125,000 | ||||||||||||||||||||
Below Threshold | <4.0% | Zero | $ | 0 | $ | 0 | $ | 0 | $ | 0 | <3% | Zero | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
JOHN DOUCETTE | CRAIG HOWIE | MARK DeSARAM | SANJOY MUKHERJEE | |||||||||||||||||||||||
Financial Performance Measure (ROE) | 2015 ROE Planned Results (Target) | 2015 Actual Results | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | ||||||||||||||||||||
70.0% | 11.0% | 15.0% | $ | 787,500 | $ | 600,833 | $ | 723,333 | $ | 548,333 |
JOHN DOUCETTE | CRAIG HOWIE | SANJOY MUKHERJEE | JONATHAN ZAFFINO | |||||||||||||||
Financial Performance Measure (ROE) | 2017 Plan ROE (Target) | 2017 Normalized ROE | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | ||||||||||||
70.0% | 10% | 10.9% | $ 619,500 | $ 447,692 | $ 422,912 | $ 413,000 |
Non Financial Performance Measure | JOHN DOUCETTE | CRAIG HOWIE | MARK DeSARAM | SANJOY MUKHERJEE | ||||||||||||||||||||||||
Non-Financial Performance Measure | JOHN DOUCETTE | CRAIG HOWIE | SANJOY MUKHERJEE | JONATHAN ZAFFINO | ||||||||||||||||||||||||
30% of 200% Base Salary Bonus Maximum | $ | 405,000 | $ | 309,000 | $ | 372,000 | $ | 282,000 | $450,000 | $325,200 | $307,200 | $300,000 |
JOHN DOUCETTE | CRAIG HOWIE | MARK DeSARAM | SANJOY MUKHERJEE | JOHN DOUCETTE | CRAIG HOWIE | SANJOY MUKHERJEE | JONATHAN ZAFFINO | |||||||||||||||||||||||||||||||||||||||||
Performance Measure | 2015 ROE Planned Results (Target) | 2015 Actual Results | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | 2017 Plan ROE (Target) | 2017 Normalized ROE | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | Resulting Maximum Bonus Potential | ||||||||||||||||||||||||||||||||||||
Operating ROE | 11.0% | 15.0% | $ | 787,500 | $ | 600,833 | $ | 723,333 | $ | 548,333 | 10% | 10.9% | $ | 619,500 | $ | 447,692 | $ | 422,912 | $ | 413,000 | ||||||||||||||||||||||||||||
Non-Financial | $ | 405,000 | $ | 309,000 | $ | 372,000 | $ | 282,000 | $ | 450,000 | $ | 325,200 | $ | 307,200 | $ | 300,000 | ||||||||||||||||||||||||||||||||
Total Maximum Bonus | $ | 1,192,500 | $ | 909,833 | $ | 1,095,333 | $ | 830,333 | $ | 1,069,500 | $ | 772,892 | $ | 730,112 | $ | 713,000 |
Accomplishments |
Demonstrated leadership in philosophies catastrophe losses |
Demonstrated leadership in strategies resulting in increased underwriting |
Continued strategic utilization of Mt. Logan Re to address competitive pressures of alternative reinsurance capital markets in traditional reinsurance space |
Successful execution on strategy for expanding top-line growth while adhering to the Board's Risk Appetite Statement through use of catastrophe bonds, ILWs and retrocession covers |
Demonstrated leadership in entities including his own area of responsibility |
Proactive leadership in |
Accomplishments |
Demonstrated leadership in overseeing and managing the Company's Accounting and Financial reporting, Comptroller's, Tax, Actuarial and Treasury department |
Demonstrated leadership on the reserving committee and his open and frank discussions with the Board regarding the Company's reserving practice |
Provide leadership in |
Established new processes and |
Managed the Company's operating capital and advised the CEO and Board on share buyback opportunities |
Active in Mt. Logan board leading to successful oversight and implementation of Mt. Logan operation improvements |
Successful interfacing with the Company's ratings agencies and independent auditors |
Accomplishments |
Demonstrated leadership in overseeing and managing the Company's Law Department |
Providing competent legal advice to the CEO, CFO and |
Active in Mt. Logan board leading to operational and strategic improvements |
Participation in strategic direction of insurance operation expansion and successful identification and satisfaction of legal and regulatory compliance requirements |
Participation in development of strategic direction and overseeing successful execution of regulatory, contractual and legal requirements for |
Conducting considerable research, analysis and outreach with shareholders and proxy advisors resulting in Board governance recommendations and improvements |
Significant participation in creation of new legal entities within the Company consistent with expansion objectives and aggressive timelines |
Overseeing |
Providing competent advice and counsel on alternative expansion strategies and identify most cost-efficient corporate governance solutions to meet rapid product and business expansion goals |
Overseeing legal aspects of |
Achieved positive operational results for Bermuda Re while diversifying the |
Development of relationships with brokers and |
Accomplishments |
Demonstrated leadership in overseeing and managing the expansion of the Company's North America insurance operations |
Development of insurance underwriting guidelines for new products |
Oversaw significant enhancements to insurance operation platform |
Effective leadership in identifying, developing and marketing new product opportunities and distribution strategies |
Participates in evaluation of M&A opportunities |
Improved the financial performance of the insurance operations |
Implemented new product offerings and diversified the product mix |
Recruitment of strong additions to the North America insurance leadership team |
Developing strategic alliances with key clients and insurtech partners to enhance operational, distribution and system efficiencies across product lines |
Pension | |||||||||||||||||||||||||||||||||
Value and | |||||||||||||||||||||||||||||||||
Nonqualified | |||||||||||||||||||||||||||||||||
Name and | Restricted | Performance | Non-Equity | Deferred | |||||||||||||||||||||||||||||
Principal | Stock | Share Unit | Incentive Plan | Compensation | All Other | ||||||||||||||||||||||||||||
Position | Year | Salary | Bonus | Awards (1) | Awards (2) | Compensation | Earnings (3) | Compensation (4) | Total | ||||||||||||||||||||||||
Dominic J. Addesso | |||||||||||||||||||||||||||||||||
CEO and President | |||||||||||||||||||||||||||||||||
2015 | $ | 1,000,000 | $ | — | $ | 2,000,325 | $ | 1,000,610 | $ | 2,900,000 | $ | 1,055,827 | $ | 204,954 | $ | 8,161,716 | |||||||||||||||||
2014 | 1,000,000 | — | 2,000,117 | — | 2,500,000 | 812,116 | 179,659 | 6,491,892 | |||||||||||||||||||||||||
2013 | 788,269 | — | 1,534,438 | — | 2,000,000 | 432,883 | 187,170 | 4,942,760 | |||||||||||||||||||||||||
Mark S. de Saram (4) | |||||||||||||||||||||||||||||||||
Executive Vice President of Company and Managing Director and Chief Executive Officer of Bermuda Re | |||||||||||||||||||||||||||||||||
2015 | $ | 620,000 | $ | — | $ | 496,281 | $ | 248,588 | $ | 775,000 | N/ | A | $ | 384,020 | $ | 2,523,889 | |||||||||||||||||
2014 | 615,385 | 750,000 | 600,050 | — | — | N/ | A | 382,267 | 2,347,702 | ||||||||||||||||||||||||
2013 | 593,077 | 750,000 | 613,775 | — | — | N/ | A | 356,817 | 2,313,669 | ||||||||||||||||||||||||
John P. Doucette | |||||||||||||||||||||||||||||||||
Executive Vice President and Chief Underwriting Officer | |||||||||||||||||||||||||||||||||
2015 | $ | 675,000 | $ | — | $ | 540,097 | $ | 270,048 | $ | 1,150,000 | $ | 285,231 | $ | 80,085 | $ | 3,000,461 | |||||||||||||||||
2014 | 663,462 | — | 700,034 | — | 1,100,000 | 435,051 | 79,151 | 2,977,698 | |||||||||||||||||||||||||
2013 | 619,231 | — | 716,275 | — | 1,000,000 | 72,824 | 67,033 | 2,475,363 | |||||||||||||||||||||||||
Craig Howie (5) | |||||||||||||||||||||||||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||||||||||||||||||||||||
2015 | $ | 511,538 | $ | — | $ | 412,226 | $ | 206,560 | $ | 760,000 | $ | — | $ | 128,652 | $ | 2,018,976 | |||||||||||||||||
2014 | 494,231 | 575,000 | 500,066 | — | — | — | 125,431 | 1,694,728 | |||||||||||||||||||||||||
2013 | 469,231 | 550,000 | 506,364 | — | — | — | 74,639 | 1,600,234 | |||||||||||||||||||||||||
Sanjoy Mukherjee | |||||||||||||||||||||||||||||||||
Executive Vice President, General Counsel and Secretary | |||||||||||||||||||||||||||||||||
2015 | $ | 465,385 | $ | — | $ | 376,458 | $ | 188,676 | $ | 700,000 | $ | 352,533 | $ | 58,485 | $ | 2,143,552 | |||||||||||||||||
2014 | 443,077 | 550,000 | 450,074 | — | — | 603,426 | 57,618 | 2,104,195 | |||||||||||||||||||||||||
2013 | 415,385 | 500,000 | 894,820 | — | — | 124,540 | 39,413 | 1,974,158 |
2017 SUMMARY COMPENSATION TABLE | ||||||||||||||||||||||||||||||||||
Change in Pension | ||||||||||||||||||||||||||||||||||
Value and | ||||||||||||||||||||||||||||||||||
Stock Awards | Nonqualified | |||||||||||||||||||||||||||||||||
Name and | Resticted | Performance | Non-Equity | Deferred | ||||||||||||||||||||||||||||||
Principal | Stock | Share Unit | Incentive Plan | Compensation | All Other | |||||||||||||||||||||||||||||
Position | Year | Salary | Bonus | Awards (1) | Awards (2) | Compensation | Earnings (3) | Compensation | Total | |||||||||||||||||||||||||
Dominic J. Addesso | ||||||||||||||||||||||||||||||||||
CEO and President | ||||||||||||||||||||||||||||||||||
2017 | $ | 1,000,000 | $ | — | $ | 2,500,611 | $ | 1,500,132 | $ | 1,800,000 | $ | 1,811,771 | $ | 216,708 | $ | 8,829,222 | ||||||||||||||||||
2016 | 1,000,000 | — | 2,400,524 | 1,200,727 | 2,500,000 | 1,500,330 | 226,096 | 8,827,677 | ||||||||||||||||||||||||||
2015 | 1,000,000 | — | 2,000,325 | 1,000,610 | 2,900,000 | 1,055,827 | 204,954 | 8,161,716 | ||||||||||||||||||||||||||
John P. Doucette | ||||||||||||||||||||||||||||||||||
Executive Vice President and President and CEO of Reinsurance Division | ||||||||||||||||||||||||||||||||||
2017 | $ | 733,846 | $ | — | $ | 600,287 | $ | 300,729 | $ | 850,000 | $ | 732,728 | $ | 72,552 | $ | 3,290,142 | ||||||||||||||||||
2016 | 686,538 | — | 552,465 | 276,232 | 1,050,000 | 505,025 | 80,518 | 3,150,778 | ||||||||||||||||||||||||||
2015 | 675,000 | — | 540,097 | 270,048 | 1,150,000 | 285,231 | 80,085 | 3,000,461 | ||||||||||||||||||||||||||
Craig Howie (5) | ||||||||||||||||||||||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||||||||||||||||||||||
2017 | $ | 538,769 | $ | — | $ | 434,126 | $ | 217,648 | $ | 550,000 | $ | — | $ | 144,076 | $ | 1,884,619 | ||||||||||||||||||
2016 | 526,539 | — | 425,044 | 212,057 | 725,000 | — | 152,070 | 2,040,710 | ||||||||||||||||||||||||||
2015 | 511,538 | — | 412,226 | 206,560 | 760,000 | — | 128,652 | 2,018,976 | ||||||||||||||||||||||||||
Sanjoy Mukherjee (4) | ||||||||||||||||||||||||||||||||||
Executive Vice President, General Counsel and Secretary | ||||||||||||||||||||||||||||||||||
2017 | $ | 508,769 | $ | — | $ | 410,723 | $ | 205,946 | $ | 550,000 | $ | 891,980 | $ | 199,209 | $ | 2,766,627 | ||||||||||||||||||
2016 | 493,077 | — | 400,862 | 200,896 | 725,000 | 602,803 | 167,551 | 2,590,189 | ||||||||||||||||||||||||||
2015 | 465,385 | — | 376,458 | 188,676 | 700,000 | 352,533 | 58,485 | 2,143,552 | ||||||||||||||||||||||||||
Jonathan M. Zaffino (5) | ||||||||||||||||||||||||||||||||||
Executive Vice President and President and CEO of Everest Insurance® | ||||||||||||||||||||||||||||||||||
2017 | $ | 490,577 | $ | — | $ | 630,711 | $ | 200,096 | $ | 400,000 | $ | — | $ | 92,811 | $ | 1,814,195 | ||||||||||||||||||
2016 | 461,539 | — | 380,401 | 180,435 | 500,000 | — | 76,760 | 1,599,135 |
(1) | The amounts are the aggregate grant date fair value for restricted awards granted during |
(2) | The amounts are the aggregate grant date fair value for performance share unit awards granted during |
(3) | Represents the aggregate change in the present value of the officers' accumulated benefit under the qualified and supplemental |
Addesso | de Saram | Doucette | Howie | Mukherjee | Addesso | Doucette | Howie | Mukherjee | Zaffino | |||||||||||||||||||||||||||||||
Life insurance premiums | $ | 982 | $ | 8,070 | $ | 982 | $ | 982 | $ | 982 | $ | 990 | $ | 990 | $ | 990 | $ | 990 | $ | 990 | ||||||||||||||||||||
Employer Matching Contributions | 29,873 | — | 20,250 | 33,519 | 13,915 | 30,000 | 21,946 | 16,163 | 15,189 | 14,717 | ||||||||||||||||||||||||||||||
(Qualified and Non-qualified) | ||||||||||||||||||||||||||||||||||||||||
Dividends on Restricted Shares | 174,099 | 51,160 | 62,000 | 43,148 | 46,215 | 185,718 | 49,616 | 38,459 | 39,662 | 26,229 | ||||||||||||||||||||||||||||||
Employer Discretionary Contribution | — | — | — | 57,508 | — | — | — | 88,464 | — | 50,875 |
(5) | Mr. Howie |
Restricted | Grant Date | ||||||||||||||||||||||||||||||||||||
Stock | Fair Value of | Grant Date | |||||||||||||||||||||||||||||||||||
Estimated Potential Payouts Under | Estimated Potential Payouts Under | Awards | Restricted | Fair Value | |||||||||||||||||||||||||||||||||
Grant | Non-Equity Incentive Plan Awards (1) | Equity Incentive Plan Awards | Number of | Stock | of PSU | ||||||||||||||||||||||||||||||||
Name | Date | Threshold | Target | Maximum | Threshold | Target (4) | Maximum (5) | Shares (2) | Awards (3) | Awards (6) | |||||||||||||||||||||||||||
Dominic J. Addesso | 2/25/2015 | — | — | $ | 3,500,000 | — | 5,595 | 9,791 | 11,185 | $ | 2,000,325 | $ | 1,000,610 | ||||||||||||||||||||||||
Mark S. de Saram | 2/25/2015 | — | — | 1,240,000 | — | 1,390 | 2,433 | 2,775 | 496,281 | 248,588 | |||||||||||||||||||||||||||
John P. Doucette | 2/25/2015 | — | — | 1,350,000 | — | 1,510 | 2,643 | 3,020 | 540,097 | 270,048 | |||||||||||||||||||||||||||
Craig Howie | 2/25/2015 | — | — | 1,030,000 | — | 1,155 | 2,021 | 2,305 | 412,226 | 206,560 | |||||||||||||||||||||||||||
Sanjoy Mukherjee | 2/25/2015 | — | — | 940,000 | — | 1,055 | 1,846 | 2,105 | 376,458 | 188,676 |
Estimated Future | Estimated Future | All Other Stock | |||||||||||||||||||||||||||||||||||
Payouts Under Non-Equity Incentive Plan Awards(1) | Payouts Under Equity Incentive Plan Awards | Awards: Number | Grant Date Fair Value of Stock Awards | ||||||||||||||||||||||||||||||||||
Name | Grant Date | Threshold | Target | Maximum | Threshold | Target(4) | Maximum(5) | of Shares of Stock or Units(2) | Restricted Stock Awards(3) | PSU Awards(6) | |||||||||||||||||||||||||||
Dominic J. Addesso | 2/22/2017 | — | $ | 1,250,000 | $ | 3,500,000 | — | 6,410 | 11,218 | 10,685 | $ | 2,500,611 | $ | 1,500,132 | |||||||||||||||||||||||
John P. Doucette | 2/22/2017 | — | 750,000 | 1,500,000 | — | 1,285 | 2,249 | 2,565 | 600,287 | 300,729 | |||||||||||||||||||||||||||
Craig Howie | 2/22/2017 | — | 542,000 | 1,084,000 | — | 930 | 1,628 | 1,855 | 434,126 | 217,648 | |||||||||||||||||||||||||||
Sanjoy Mukherjee | 2/22/2017 | — | 512,000 | 1,024,000 | — | 880 | 1,540 | 1,755 | 410,723 | 205,946 | |||||||||||||||||||||||||||
Jonathan Zaffino | 2/22/2017 | — | 500,000 | 1,000,000 | — | 855 | 1,496 | 1,710 | 400,191 | 200,096 | |||||||||||||||||||||||||||
Jonathan Zaffino | 9/6/2017 | — | 500,000 | 1,000,000 | — | — | — | 1,000 | 230,520 | — |
(1) | Potential awards to be made pursuant to the Executive Performance Annual Incentive Plan. The actual award is shown in the "Non-Equity Incentive |
(2) | This column shows the number of restricted shares granted in |
(3) | The grant date fair value of each |
(4) | This column shows the number of |
(5) | This column shows the number of |
(6) | The grant date fair value of each equity award calculated in accordance with FASB ASC 718. |
Option Awards | Restricted Share Awards | PSU Share Awards | Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of | Market Value | Number | Market Value | Restricted Stock Awards | PSU Awards | |||||||||||||||||||||||||||||||||||||||||||||||||||
Number of | Restricted | of Restricted | of PSU | PSU | Equity Incentive | Equity Incentive Plan Awards: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Underlying | Option | Option | Shares that | Shares that | Shares that | Shares that | Number of | Market Value | Plan Awards: Number | Market or Payout Value | ||||||||||||||||||||||||||||||||||||||||||||||
Unexercised Options | Exercise | Expiration | Have Not | Have Not | Have Not | Have Not | Number of Securities Underlying Unexercised Options | Shares or Units of | of Shares or Units of | of Unearned Shares, Units | of Unearned Shares, Units | |||||||||||||||||||||||||||||||||||||||||||||
Name | Vested | Unvested | Price | Date | Vested (1) | Vested (2) | Vested (1) | Vested (2) | Exercisable | Unexercisable | Option Exercise Price | Option Expiration Date | Stock That Have Not Vested(1) | Stock That Have Not Vested(2) | or Other Rights That Have Not Vested | or Other Rights That Have Not Vested(2) | ||||||||||||||||||||||||||||||||||||||||
Dominic J. Addesso | — | — | $ | — | 41,316 | $ | 7,564,546 | 1,399 | $ | 256,143 | — | — | $ | — | 35,662 | $7,890,574 | 9,646 | $ 2,134,274 | ||||||||||||||||||||||||||||||||||||||
Mark S. de Saram | — | — | — | 12,790 | 2,341,721 | 348 | 63,715 | |||||||||||||||||||||||||||||||||||||||||||||||||
John P. Doucette | — | — | — | 14,930 | 2,733,534 | 378 | 69,208 | — | — | — | 9,825 | 2,173,880 | 2,061 | 456,017 | ||||||||||||||||||||||||||||||||||||||||||
Craig Howie | — | — | — | 10,438 | 1,911,093 | 289 | 52,913 | — | — | — | 7,252 | 1,604,578 | 1,535 | 339,634 | ||||||||||||||||||||||||||||||||||||||||||
Sanjoy Mukherjee | — | — | — | 11,055 | 2,024,060 | 264 | 48,336 | — | — | — | 7,334 | 1,622,721 | 1,454 | 321,712 | ||||||||||||||||||||||||||||||||||||||||||
Jonathan Zaffino | — | — | — | 5,689 | 1,258,748 | 1,360 | 157,758 |
(1) | Restricted shares vest at the rate of 20% annually over a five year period. |
(2) | Determined by multiplying the NYSE December 31, 2017 closing price of $221.26 by the number of outstanding share or performance share unit awards. |
Grant Date | 2/24/2011 | 9/21/2011 | 2/22/2012 | 5/9/2012 | 9/19/2012 | 2/20/2013 | 9/12/2013 | 2/26/2014 | 2/25/2015 | 2/20/2013 | 9/12/2013 | 2/26/2014 | 2/25/2015 | 2/24/2016 | 2/22/2017 | 9/6/2017 | ||
Dominic J. Addesso | ||||||||||||||||||
Restricted Share Awards | 1,600 | 5,548 | — | 3,000 | 7,500 | — | 10,883 | 11,185 | ||||||||||
PSU Awards | 5,595 | |||||||||||||||||
Mark S. de Saram | ||||||||||||||||||
Restricted Share Awards | 1,250 | — | 2,500 | — | 3,000 | — | 3,265 | 2,775 | 2,500 | — | 5,442 | 6,711 | 10,324 | 10,685 | — | |||
PSU Awards | 1,390 | 5,595 | 6,455 | 6,410 | — | |||||||||||||
John P. Doucette | ||||||||||||||||||
Restricted Share Awards | 1,000 | 800 | 2,800 | — | 3,501 | — | 3,809 | 3,020 | 1,167 | — | 1,905 | 1,812 | 2,376 | 2,565 | — | |||
PSU Awards | 1,510 | 1,510 | 1,485 | 1,285 | — | |||||||||||||
Craig Howie | ||||||||||||||||||
Restricted Share Awards | — | 2,937 | — | 2,475 | — | 2,721 | 2,305 | 825 | — | 1,361 | 1,383 | 1,828 | 1,855 | — | ||||
PSU Awards | 1,155 | 1,155 | 1,140 | 930 | — | |||||||||||||
Sanjoy Mukherjee | ||||||||||||||||||
Restricted Share Awards | 800 | — | 1,600 | — | 2,001 | 2,100 | 2,449 | 2,105 | 667 | 700 | 1,225 | 1,263 | 1,724 | 1,755 | — | |||
PSU Awards | 1,055 | 1,055 | 1,080 | 880 | — | |||||||||||||
Jonathan Zaffino | ||||||||||||||||||
Restricted Share Awards | — | — | — | 1,343 | 1,636 | 1,710 | 1,000 | |||||||||||
PSU Awards | — | 970 | 855 | — |
Option Awards | Share Awards | Option Awards | Share Awards | |||||||||||||||||||||||||||||
Number of Shares | Number of Shares | Number of Shares | Number of Shares | |||||||||||||||||||||||||||||
Acquired on | Value Realized | Acquired on | Value Realized | Acquired on | Value Realized | Acquired on | Value Realized | |||||||||||||||||||||||||
Name | Exercise | on Exercise (1) | Vesting | on Vesting (2) | Exercise | on Exercise(1) | Vesting | on Vesting(2) | ||||||||||||||||||||||||
Dominic J. Addesso | — | — | 13,894 | $ | 2,464,462 | — | — | 14,312 | $ | 3,344,804 | ||||||||||||||||||||||
Mark S. de Saram | — | — | 5,566 | 992,391 | ||||||||||||||||||||||||||||
John P. Doucette | — | — | 5,919 | 1,051,838 | — | — | 4,717 | 1,105,696 | ||||||||||||||||||||||||
Craig Howie | — | — | 2,974 | 534,137 | — | — | 3,892 | 928,314 | ||||||||||||||||||||||||
Sanjoy Mukherjee | 6,000 | $ | 489,360 | 4,179 | 744,292 | — | — | 3,631 | 849,540 | |||||||||||||||||||||||
Jonathan Zaffino | — | — | 856 | 200,926 |
(1) | The aggregate dollar value realized upon the exercise of options determined by computing the difference between the market price and the option exercise price on the day of exercise. |
(2) | Amount reflects the aggregate market share value on the day that the restricted shares vest. |
Number of | Present Value | Payments | Number of | Present Value | Payments | |||||||||||||||||||||
Years Credited | of Accumulated | During | Years Credited | of Accumulated | During | |||||||||||||||||||||
Name | Plan Name | Service | Benefit (1) | Last Fiscal Year | Plan Name | Service | Benefit(1) | Last Fiscal Year | ||||||||||||||||||
Dominic J. Addesso | Retirement Plan | 6.7 | $ | 414,289 | $ | — | Retirement Plan | 8.7 | $ | 651,830 | $ | — | ||||||||||||||
Supplemental Plan | 2,782,858 | — | ||||||||||||||||||||||||
Mark S. de Saram | None | N/ | A | — | — | |||||||||||||||||||||
— | — | Supplemental Plan | 5,857,419 | — | ||||||||||||||||||||||
John P. Doucette | Retirement Plan | 7.3 | 265,782 | — | Retirement Plan | 9.3 | 447,316 | — | ||||||||||||||||||
Supplemental Plan | 1,009,109 | — | Supplemental Plan | 2,065,328 | — | |||||||||||||||||||||
Craig Howie | Retirement Plan | N/ | A | — | — | Retirement Plan | N/A | — | — | |||||||||||||||||
Supplemental Plan | — | — | Supplemental Plan | — | — | |||||||||||||||||||||
Sanjoy Mukherjee | Retirement Plan | 15.5 | 584,204 | — | Retirement Plan | 17.5 | 871,296 | — | ||||||||||||||||||
Supplemental Plan | 1,427,345 | — | Supplemental Plan | 2,635,036 | — | |||||||||||||||||||||
Jonathan Zaffino | Retirement Plan | N/A | — | — | ||||||||||||||||||||||
Supplemental Plan | — | — |
(1) | The table employs the discount rate of |
Executive | Registrant | Aggregate | Aggregate | Aggregate | Executive | Registrant | Aggregate | Aggregate | Aggregate | |||||||||||||||||||||||||||||||
Contributions in | Contributions in | Earnings in | Withdrawal/ | Balance at Last | Contributions in | Contributions in | Earnings in | Withdrawal/ | Balance at Last | |||||||||||||||||||||||||||||||
Name | Last Fiscal Year (2) | Last Fiscal Year (2) | Last Fiscal Year | Distributions | Fiscal Year-End (3) | Last Fiscal Year(2) | Last Fiscal Year(2) | Last Fiscal Year | Distributions | Fiscal Year-End(3) | ||||||||||||||||||||||||||||||
Dominic J. Addesso | ||||||||||||||||||||||||||||||||||||||||
Everest Re Supplemental | ||||||||||||||||||||||||||||||||||||||||
Savings Plan | $ | 21,923 | $ | 21,923 | $ | 986 | $ | — | $ | 249,068 | ||||||||||||||||||||||||||||||
Mark S. de Saram | ||||||||||||||||||||||||||||||||||||||||
Everest Re Supplemental | ||||||||||||||||||||||||||||||||||||||||
Savings Plan | N/ | A | — | — | — | — | $ | 21,923 | $ | 21,923 | $ | 69,525 | $ | — | $ | 427,989 | ||||||||||||||||||||||||
John P. Doucette | ||||||||||||||||||||||||||||||||||||||||
Everest Re Supplemental | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Savings Plan | 12,462 | 12,462 | (3,763 | ) | — | 167,629 | 13,846 | 13,846 | 44,212 | — | 288,362 | |||||||||||||||||||||||||||||
Craig Howie | ||||||||||||||||||||||||||||||||||||||||
Everest Re Supplemental | ||||||||||||||||||||||||||||||||||||||||
Savings Plan | 7,131 | 64,638 | 4,410 | — | 221,802 | 8,130 | 77,694 | 90,334 | — | 502,702 | ||||||||||||||||||||||||||||||
Sanjoy Mukherjee | ||||||||||||||||||||||||||||||||||||||||
Everest Re Supplemental | ||||||||||||||||||||||||||||||||||||||||
Savings Plan | 5,965 | 5,965 | 4,410 | — | 81,508 | 7,089 | 7,089 | 30,271 | — | 138,267 | ||||||||||||||||||||||||||||||
Jonathan Zaffino | ||||||||||||||||||||||||||||||||||||||||
Everest Re Supplemental | ||||||||||||||||||||||||||||||||||||||||
Savings Plan | 6,923 | 44,298 | 17,620 | — | 130,139 |
(1) | The Supplemental Savings Plan has the same investment elections as the Company's 401(k) plan and is designed to allow each participant to contribute a percentage of his base salary and receive a company match beyond the contribution limits prescribed by the Code with regard to 401(k) plans. When the annual IRS 401(a) (17) compensation maximum is reached under the qualified savings plan, eligible employees may contribute to the Supplemental Savings Plan which allows for up to a 3% employee contribution and a 3% company match. Withdrawal is permitted only upon cessation of employment. |
(2) | All of the amounts reported in this column are included in the |
(3) | The amounts reported in this column represent balances from the Everest Re Supplemental Savings Plan and include various amounts previously reported in the Summary Compensation Table as Salary, Bonus or All Other Compensation. |
Fiscal Year | 2017 | 2017 | ||||||
Employee | Median Employee | CEO | ||||||
Base Salary April 2017 | $ | 118,900 | $ | 1,000,000 | ||||
Bonus Paid March 2018 | $ | 10,000 | $ | 1,800,000 | ||||
Res Share Value Granted Feb. 2017 | $ | 0 | $ | 2,500,000 | ||||
Perf Share Target Value Granted Feb. 2017 | $ | 0 | $ | 1,500,000 | ||||
Pension Value and Nonqualified Deferred Comp Earnings PY 2017 | $ | 50,304 | $ | 1,811,771 | ||||
All Other Compensation PY 2017 | $ | 3,846 | $ | 216,708 | ||||
Total Comp | $ | 183,050 | $ | 8,828,479 |
· | Date Selected – December 1, 2017. |
· | Median employee identified using Total Compensation, which includes base salary, bonus, and stock awards (if any). |
· | Employees from all Everest locations included in calculation to identify median. |
· | Salaries, bonuses and stock for Non-US employees converted to USD (12/1/2017 conversion rates). |
· | Salaries for part-time employees annualized to a full-time equivalent. |
· | Bonus and stock target amounts were included for mid-year hired employees who were not otherwise eligible to participate in the full 2017 annual compensation review process. |
· | "All Other Compensation" includes life insurance premiums, employer matching contributions (qualified and non-qualified), dividends on restricted shares and employer discretionary contributions. |
Name | PSUs | Restricted Shares | Total | PSUs | Restricted Shares | Total | ||||||||||||||||||
Dominic J. Addesso | $ | 1,024,389 | $ | 7,564,546 | $ | 8,588,935 | $ | 4,292,944 | $ | 7,890,574 | $ | 12,183,518 | ||||||||||||
Mark S. de Saram | 254,495 | 2,341,721 | 2,596,216 | |||||||||||||||||||||
John P. Doucette | 276,466 | 2,733,534 | 3,010,000 | 1,015,406 | 2,173,880 | 3,189,286 | ||||||||||||||||||
Craig W. Howie | 211,469 | 1,911,093 | 2,122,562 | 767,084 | 1,604,578 | 2,371,662 | ||||||||||||||||||
Sanjoy Mukherjee | 193,160 | 2,024,060 | 2,217,220 | 714,876 | 1,622,721 | 2,337,597 | ||||||||||||||||||
Jonathan Zaffino | 375,049 | 1,258,748 | 1,633,797 |
Termination Without | Termination | Termination Without | Termination | |||||||||||||||||
Cause or Resignation | Following | Cause or Resignation | Following | |||||||||||||||||
Name | Incremental Benefit | for Good Reason | Change in Control | Incremental Benefit | for Good Reason | Change in Control | ||||||||||||||
Dominic J. Addesso | Cash Payment | $ | 4,900,000 | (1) | $ | 7,374,439 | (7) | Cash Payment | $ | 3,800,000 | (1) | $ | 9,083,333 | (5) | ||||||
Restricted Stock Value | 4,881,729 | (2) | 7,564,546 | (8) | Restricted Stock Value | 5,291,433 | (2) | 7,890,574 | (6) | |||||||||||
PSU Value | 1,109,800 | (3) | 1,109,800 | (9) | PSU Value | 4,292,944 | (3) | 4,292,944 | (7) | |||||||||||
Benefits Continuation | $ | 45,892 | (4) | 31,000 | Benefits Continuation | 41,407 | (4) | 25,000 | ||||||||||||
Pension Enhancement | — | 4,192,000 | Pension Enhancement | — | 932,000 | |||||||||||||||
Benefits Cutback | N/A | N/A | Total Value | $ | 13,425,784 | $ | 22,223,851 | (8) | ||||||||||||
Total Value | $ | 10,937421 | $ | 20,271,785 | (10) | |||||||||||||||
Mark S. de Saram | Cash Payment | $ | 620,000 | (5) | $ | 2,582,565 | (7) | |||||||||||||
Restricted Stock Value | 891,831 | (2) | 2,341,721 | (8) | ||||||||||||||||
PSU Value | 63,715 | (6) | 275,795 | (9) | ||||||||||||||||
Benefits Continuation | 15,521 | 54,474 | ||||||||||||||||||
Total Value | $ | 1,591,067 | $ | 5,071,798 | ||||||||||||||||
John P. Doucette | Cash Payment | $ | 2,500,000 | (1) | $ | 3,205,128 | (7) | Cash Payment | $ | 2,350,000 | (1) | $ | 3,596,154 | (5) | ||||||
Restricted Stock Value | 1,084,442 | (2) | 2,733,534 | (8) | ||||||||||||||||
PSU Value | 69,208 | (6) | 299,596 | (9) | Restricted Stock Value | 847,426 | (2) | 2,173,880 | (6) | |||||||||||
Benefits Continuation | 32,187 | (4) | 44,000 | PSU Value | 1,015,406 | (3) | 1,015,406 | (7) | ||||||||||||
Pension Enhancement | — | 1,076,000 | Benefits Continuation | 29,328 | (4) | 36,000 | ||||||||||||||
Benefits Cutback | N/A | (1,525,476 | ) | Pension Enhancement | — | 598,000 | ||||||||||||||
Total Value | $ | 3,685,837 | $ | 5,832,782 | (10) | Total Value | $ | 4,242,160 | $ | 7,419,440 | (8) | |||||||||
Craig Howie | Cash Payment | $ | — | $ | 2,033,333 | (7) | Cash Payment | 1,634,000 | (1) | $ | 2,424,564 | (5) | ||||||||
Restricted Stock Value | — | 1, 911,093 | (8) | Restricted Stock Value | 618,200 | (2) | 1,604,578 | (6) | ||||||||||||
PSU Value | 52,913 | (6) | 229,137 | (9) | PSU Value | 767,084 | (3) | 767,084 | (7) | |||||||||||
Benefits Continuation | — | 44,000 | Benefits Continuation | 29,328 | (4) | 36,000 | ||||||||||||||
Saving Plan Enhancement | — | 294,000 | Saving Plan Enhancement | — | 359,000 | |||||||||||||||
Benefits Cutback | — | N/A | Total Value | $ | 3,048,612 | $ | 5,191,226 | (8) | ||||||||||||
Sanjoy Mukherjee | Cash Payment | $ | 1,574,000 | (1) | $ | 2,292,256 | (5) | |||||||||||||
Total Value | $ | 52,913 | $ | 4,327,461 | (10) | Restricted Stock Value | 704,049 | (2) | 1,622,721 | (6) | ||||||||||
PSU Value | 714,876 | (3) | 714,876 | (7) | ||||||||||||||||
Benefits Continuation | 22,494 | (4) | 40,000 | |||||||||||||||||
Pension Enhancement | — | 471,000 | ||||||||||||||||||
Total Value | $ | 3,015,419 | $ | 5,140,853 | (8) |
Termination Without | Termination | ||||||||
Cause or Resignation | Following | ||||||||
Name | Incremental Benefit | for Good Reason | Change in Control | ||||||
Jonathan M. Zaffino | Cash Payment | $ | 1,400,000 | (1) | $ | 1,641,972 | (5) | ||
Restricted Stock Value | 309,543 | (2) | 1,258,748 | (6) | |||||
PSU Value | 375,049 | (3) | 375,049 | (7) | |||||
Benefits Continuation | 34,822 | (4) | 41,000 | ||||||
Saving Plan Enhancement | — | 217,000 | |||||||
Total Value | $ | 2,119,414 | $ | 3,533,769 | (8) |
Termination Without | Termination | ||||||||||
Cause or Resignation | Following | ||||||||||
Name | Incremental Benefit | for Good Reason | Change in Control | ||||||||
Sanjoy Mukherjee | Cash Payment | $ | 1,600,000 | (1) | $ | 1,849,231 | (7) | ||||
Restricted Stock Value | 732,360 | (2) | 2,024,060 | (8) | |||||||
PSU Value | 48,336 | (6) | 209,302 | (9) | |||||||
Benefits Continuation | 32,187 | (4) | 44,000 | ||||||||
Pension Enhancement | — | 1,437,000 | |||||||||
Benefits Cutback | — | N/A | |||||||||
Total Value | $ | 2,412,883 | $ | 5,563,593 | (10) |
(1) | Pursuant to the terms of the Mr. Addesso's employment agreement, he would be paid a separation allowance in equal installments over a 24 month period equal to two times his base salary. |
(2) | Pursuant to the terms of the Named Executive Officer's employment agreement, unvested restricted stock will continue to vest in accordance with its terms in the 12 month period following termination for |
(3) | Under the terms of |
(4) | Pursuant to the terms of the Named Executive Officer's employment agreement, he shall continue to participate in the disability and life insurance programs until the earlier of a certain number of months or his eligibility to be covered by comparable benefits of a subsequent employer and he will receive a cash payment to enable him to pay for medical and dental coverage for a certain number of months. For Mr. Addesso, the number is 24 months, for |
(5) |
The Senior Executive Change of Control Agreement provides for a cash payment that equals the average of the executive's salary and bonus for the previous three years times a factor assigned by the Board. The factor is 2.0 for Messrs. |
The unvested |
In the event of a Change in Control, the Company may elect to continue the Performance Stock Awards subject to the 2010 Stock Incentive Plan and Performance Stock Unit Award Agreement. According to the award agreement, |
(8) | The Senior Executive Change of Control Plan includes a "Best Net" provision regarding the determination and treatment of parachute payments that could potentially result in a reduced figure based on each participant's relevant circumstances as calculated by an accounting firm agreed to by the participant and the Company. Under the provision, in lieu of an automatic reduction in benefits in the event of an excess parachute payment that triggers the excise tax, benefits are reduced to avoid an excess parachute payment only if doing so results in a higher after-tax benefit to the participant. |
By Order of the Board of Directors | |
Sanjoy Mukherjee | |
Executive Vice President, General Counsel and Secretary |