UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
SCHEDULE 14A INFORMATION |
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 |
(Amendment No. ) |
Filed by the Registrant ý |
Filed by a Party other than the Registrant ¨ |
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¨ Preliminary Proxy Statement |
¨ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
ý Definitive Proxy Statement |
¨ Definitive Additional Materials |
¨ Soliciting Material Under Rule 14a-12 |
HNI CORPORATION |
(Name of Registrant as Specified In Its Charter) |
(Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
Payment of Filing Fee (Check the appropriate box): | ||
No fee required | ||
Fee computed on table below per Exchange Act Rules 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 Act Rule 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: | |
Fee paid previously with preliminary materials. | ||
Check box if any part of the fee is offset as provided by Exchange Act Rule 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.: | |
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(4) | Date Filed: | |
1. | Electing the |
2. | Ratifying the Audit Committee's selection of KPMG LLP as the Corporation's independent registered public accountant for the fiscal year ending December |
3. | Holding an advisory vote to approve named executive officer compensation; and |
4. | Transacting any other business properly brought before the meeting or any adjournment or postponement. |
DEADLINE FOR SHAREHOLDER PROPOSALS FOR THE | ||
• | Adoption of an advisory resolution approving the compensation of the Corporation's named executive officers as described on page 38 of this Proxy Statement under "Proposal No. 3 – Advisory Vote to Approve Named Executive Officer Compensation." |
THE BOARD RECOMMENDS A VOTE "FOR" THE ELECTION OF THE NOMINEES AS DIRECTORS. |
Name | Fees Earned or Paid in Cash ($) (1) | Stock Awards ($) (2) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) (3) | All Other Compensation ($) (4) | Total ($) | Fees Earned or Paid in Cash ($) (1) | Stock Awards ($) (2) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) (3) | All Other Compensation ($) (4) | Total ($) |
Mary A. Bell | 65,070 | 105,000 | — | 1,988 | 172,058 | 66,500 | 108,000 | — | 2,705 | 177,205 |
Miguel M. Calado | 65,070 | 105,000 | — | 1,988 | 172,058 | 66,500 | 108,000 | — | 2,705 | 177,205 |
Cheryl A. Francis | 81,570 | 105,000 | — | 1,988 | 188,558 | 81,500 | 108,000 | — | 2,705 | 192,205 |
John R. Hartnett | 66,570 | 105,000 | — | 1,988 | 173,558 | 66,500 | 108,000 | — | 2,705 | 177,205 |
Mary K.W. Jones | 65,070 | 105,000 | — | 1,988 | 172,058 | 66,500 | 108,000 | — | 2,705 | 177,205 |
Larry B. Porcellato | 80,820 | 105,000 | 300 | 1,988 | 188,108 | 85,500 | 108,000 | 635 | 2,705 | 196,840 |
Abbie J. Smith | 69,820 | 105,000 | — | 1,988 | 176,808 | 66,500 | 108,000 | — | 2,705 | 177,205 |
Brian E. Stern | 75,070 | 105,000 | — | 1,988 | 182,058 | 76,500 | 108,000 | — | 2,705 | 187,205 |
Ronald V. Waters, III | 75,070 | 105,000 | 2,531 | 1,988 | 184,589 | 76,500 | 108,000 | 5,359 | 2,705 | 192,564 |
(1) | For |
(2) | Represents the portion of the annual retainer paid in the form of shares – a |
(3) | Includes above-market interest earned on cash compensation deferred under the Directors Deferred Plan. Interest on deferred cash compensation is earned at one percent over the prime rate. Above-market earnings represent the difference between the interest earned under the Directors Deferred Plan and 120% of the applicable federal long-term rate. Above-market interest earned by Mr. Porcellato is for cash compensation deferred prior to January 1, 2007, and interest earned by Mr. Waters is for cash compensation deferred prior to January 1, 2010. |
(4) | Includes dividends earned on 2018 Common Stock |
THE BOARD RECOMMENDS A VOTE "FOR" RATIFICATION OF THE AUDIT COMMITTEE'S SELECTION OF KPMG LLP AS THE CORPORATION'S INDEPENDENT REGISTERED PUBLIC ACCOUNTANT FOR FISCAL |
Fee Category | Fiscal 2017 | Fiscal 2016 | ||||||
Audit Fees (1) | $ | 1,800,000 | $ | 1,469,000 | ||||
Audit-Related Fees (2) | 5,000 | 51,829 | ||||||
Tax Fees (3) | 50,118 | 196,137 | ||||||
All Other Fees (4) | 41,925 | — | ||||||
Total | $ | 1,897,043 | $ | 1,716,966 |
Fee Category | Fiscal 2018 | Fiscal 2017 | ||||
Audit Fees (1) | $ | 1,850,000 | $ | 1,800,000 | ||
Audit-Related Fees (2) | — | 5,000 | ||||
Tax Fees (3) | 24,958 | 50,118 | ||||
All Other Fees (4) | 27,390 | 41,925 | ||||
Total | $ | 1,902,348 | $ | 1,897,043 | ||
(1) | Audit Fees represent fees for professional services provided in connection with the audit of the annual financial statements, review of quarterly financial statements and audit services provided in connection with other statutory and regulatory filings or engagements. |
(2) | Audit-Related Fees represent accounting consultations. |
(3) | Tax Fees represent fees |
(4) | All Other Fees represent fees for services other than the services reported in Audit Fees, |
Name | Position |
Jeffrey D. Lorenger | President and Chief Executive Officer, HNI Corporation |
Stan A. Askren | Former Chairman, President and Chief Executive Officer, HNI Corporation |
Marshall H. Bridges | Chief Financial Officer; Senior Vice President, HNI Corporation |
Vincent P. Berger | President, Hearth & Home Technologies; Executive Vice President, HNI Corporation |
President, Allsteel Inc. | |
Kurt A. Tjaden | President, HNI International; Senior Vice President, |
1. | Executive Compensation Overview |
2. | Executive Compensation Objectives and Governance |
3. | Executive Compensation Elements |
4. | Additional Compensation Programs and Policies |
Element | Description | Purpose | |
Base Salary (see page | Annual cash compensation. | Compensation for expected day-to-day responsibilities. Pay adjustments are based on capabilities, responsibilities and market factors. | |
Annual Incentive Opportunity (see page | Targeted variable compensation equal to a percentage of base salary paid once a year and based 80% on financial performance and 20% on individual objectives. | Focus executives on annual performance goals, typically financially driven. | |
Long-term Incentive Opportunity (see page | Variable performance compensation typically in the form of stock options and cash earned at the end of a three-year period based on economic profit goals. | Align executives' decisions with long-term shareholder value creation. Promote executive retention. |
HNI Compensation Practices | ||
What We Do | ||
Pay for performance | A large majority of executive compensation is based on achievement of long-term value creation. | |
Stock ownership guidelines | Stock ownership guidelines require the CEO to hold shares valued at 5x base salary and other Named Executive Officers at 3x base salary. | |
Double trigger change in control | Both a change in control and involuntary termination are required for the change in control agreement to take effect. | |
Clawback policy | Performance-based compensation, under certain circumstances, will be canceled or reclaimed if an executive engages in fraud or financial misconduct. | |
Anti-hedging policy | Officers and directors are prohibited from engaging in hedging or pledging transactions with respect to HNI stock. | |
Independent compensation consultant | The Compensation Committee engages an independent compensation consultant who works only for the Committee, and not for management. | |
Annual shareholder Say on Pay | The Corporation holds an annual advisory vote regarding Named Executive Officer compensation. | |
Annual compensation risk assessment | The Compensation Committee reviews a risk assessment of the Named Executive Officer compensation program every year. | |
What We Don't Do | ||
No | ||
r | Neither the CEO nor any other Named Executive Officers have an employment contract. | |
No perquisites | r | Perquisites are not provided to executives or directors. |
No excise tax gross-ups | r | No executives are eligible for excise tax gross-ups. |
No repricing of underwater options | r | Underwater options are not repriced or replaced. |
No dividends on unearned | r | Dividends are not paid on restricted stock units. |
No supplemental executive benefits | r | Executive officers are not offered additional benefits beyond those generally available to all members. |
Company | Annual Revenues ($ billions) | Company | Annual Revenues ($ billions) |
Carlisle Companies Incorporated | $3.9 | Donaldson Company, Inc. | $2.5 |
Leggett & Platt, Incorporated | $3.9 | Lincoln Electric Holdings Inc. | $2.4 |
Snap-On Incorporated | $3.9 | Herman Miller, Inc. | $2.3 |
Lennox International Inc. | $3.8 | Kennametal Inc. | $2.1 |
Regal Beloit Corporation | $3.3 | Briggs & Stratton Corporation | $1.8 |
Steelcase Inc. | $3.1 | Armstrong World Industries, Inc. | $1.3 |
A.O. Smith Corporation | $3.0 | Actuant Corporation | $1.1 |
Valmont Industries | $2.7 | Knoll Inc. | $1.1 |
HNI Corporation annual revenue: $2.2 Billion. |
Peer Group | ||
A.O. Smith Corporation | Knoll Inc. | |
Actuant Corporation | Leggett & Platt, Incorporated | |
Armstrong World Industries, Inc. | Lennox International Inc. | |
Briggs & Stratton Corporation | Lincoln Electric Holdings Inc. | |
Carlisle Companies Incorporated | Regal Beloit Corporation | |
Donaldson Company, Inc. | Snap-On Incorporated | |
Herman Miller, Inc. | Steelcase Inc. | |
Kennametal Inc. | Valmont Industries |
Name | 2016 Annual Base Salary ($) | 2017 Annual Base Salary ($) | Increase ($) | Increase (%) | Approximate Market Median Annual Base Salary ($) | 2017 Base Salary as Percentage of Market Median (%) | 2017 Annual Base Salary ($) | 2018 Annual Base Salary ($) | Increase ($) | Increase (%) | Approximate Market Median Annual Base Salary ($) | 2018 Base Salary as Percentage of Market Median (%) |
Jeffrey D. Lorenger | 600,000 | 900,000 | 300,000 | 50.0 | 1,010,475 | 89 | ||||||
Stan A. Askren | 1,135,654 | 1,181,080 | 45,426 | 4.0 | 1,010,215 | 117 | 1,181,080 | 1,222,418 | 41,338 | 3.5 | 1,010,475 | 121 |
Marshall H. Bridges | 264,992 | 385,000 | 120,008 | 45.3 | 473,904 | 81 | 385,000 | 442,800 | 57,800 | 15.0 | 500,200 | 89 |
Vincent P. Berger | 385,000 | 415,800 | 30,800 | 8.0 | 442,900 | 94 | ||||||
Brandon T. Sieben | 325,000 | 350,000 | 25,000 | 7.7 | 398,000 | 88 | ||||||
Kurt A. Tjaden | 440,490 | 456,000 | 15,510 | 3.5 | 434,136 | 105 | 456,000 | 472,000 | 16,000 | 3.5 | 444,300 | 106 |
Jeffrey D. Lorenger | 467,220 | 600,000 | 132,780 | 28.4 | 621,313 | 97 | ||||||
Vincent P. Berger | 350,000 | 385,000 | 35,000 | 10.0 | 429,515 | 90 | ||||||
Jerald K. Dittmer | 491,930 | 508,163 | 16,233 | 3.3 | 500,799 | 101 |
Award Target as a % of Base Salary | Basis of Award Achievement | |||
Chairman and CEO | 120% | Achievement of Financial Goals | 80% | |
Other Named Executive Officers* | 75% | Attainment of Individual Organic Sales Goals | 20% | |
*In conjunction with his position change, Mr. Dittmer's award target was changed to 70% of his base salary effective November 6, 2017. |
Award Target as a % of Base Salary | Basis of Award Achievement | |||
President and CEO | 110% | Achievement of Financial Goals | 80% | |
Other Named Executive Officers | 75% | Attainment of Individual Organic Sales Goal | 20% | |
Mr. Askren's Award Target for 2018 was 120% |
Name | Annual Incentive Compensation Award Target ($) | Actual Award Payout Attributable to Financial Goals ($) | Actual Award Payout Attributable to Individual Objectives ($) | Total Payout ($) | Actual Payout as % of Target (%) | Annual Incentive Compensation Award Target ($) | Actual Award Payout Attributable to Financial Goals ($) | Actual Award Payout Attributable to Individual Objectives ($) | Total Payout ($) | Actual Payout as % of Target (%) |
Jeffrey D. Lorenger | 880,096 | 312,535 | 190,117 | 502,652 | 57 | |||||
Stan A. Askren | 1,417,296 | 0 | 192,752 | 13.6 | 1,466,902 | 668,907 | 322,718 | 991,625 | 68 | |
Marshall H. Bridges* | 283,197 | 2,399 | 39,181 | 41,580 | 14.7 | |||||
Marshall H. Bridges | 332,100 | 151,438 | 73,062 | 224,500 | 68 | |||||
Vincent P. Berger | 311,850 | 331,808 | 77,963 | 409,771 | 131 | |||||
Brandon T. Sieben | 262,500 | 0 | 32,550 | 12 | ||||||
Kurt A. Tjaden | 342,000 | 340,316 | 56,825 | 397,141 | 116.1 | 354,000 | 324,101 | 69,166 | 393,267 | 111 |
Jeffrey D. Lorenger | 450,000 | 72,900 | 87,300 | 160,200 | 35.6 | |||||
Vincent P. Berger | 288,750 | 168,630 | 53,130 | 221,760 | 76.8 | |||||
Jerald K. Dittmer* | 377,213 | 0 | 57,336 | 15.2 | ||||||
*Messrs. Bridges and Dittmer experienced changes in their annual incentive targets during 2017, related to their position changes. Amounts above reflect actual 2017 target opportunity and payout amounts based on the number of weeks spent in each position (and therefore at each target level) in 2017. |
Economic Profit Achievement ($M) | Financial Component of Annual Incentive Compensation Award – Payout (%) |
Less than 48.2 | 0% |
48.2 | 35% |
62.3 | 100% |
74.2 | 200% |
Economic Profit Achievement ($M) | Financial Component of Annual Incentive Compensation Award – Payout (%) |
Less than 25.6 | 0 |
25.6 | 35 |
41.3 | 100 |
54.9 | 200 |
Name | Total Long-Term Incentive Compensation Target ($) | Total Long-Term Incentive Compensation Award Target (% of Annual Base Salary at Time of Award) |
Jeffrey D. Lorenger | 2,325,000 | 325 |
Stan A. Askren | 3,667,253 | 300 |
Marshall H. Bridges | 664,200 | 150 |
Vincent P. Berger | 577,500 | 150 |
Brandon T. Sieben | 325,000 | 100 |
Kurt A. Tjaden | 684,000 | 150 |
Name | Total Long-Term Incentive Compensation Target ($) | Total Long-Term Incentive Compensation Award Target (% of Annual Base Salary at Time of Award) |
Stan A. Askren | 3,543,240 | 300 |
Marshall H. Bridges | 577,500 | 150 |
Kurt A. Tjaden | 660,735 | 150 |
Jeffrey D. Lorenger | 981,162 | 200 |
Vincent P. Berger | 437,500 | 125 |
Jerald K. Dittmer | 983,859 | 200 |
Name | Targeted Value of Stock Options Granted in 2017 ($)(1) | Stock Options Granted (#) | Targeted Value of Stock Options Granted in February 2018 ($)(1) | Stock Options Granted (#) |
Jeffrey D. Lorenger | 746,566 | 76,336 | ||
Stan A. Askren | 2,396,340 | 166,297 | 2,281,537 | 233,286 |
Marshall H. Bridges | 390,569 | 27,104 | 413,225 | 42,252 |
Vincent P. Berger | 359,288 | 36,737 | ||
Brandon T. Sieben | 202,192 | 20,674 | ||
Kurt A. Tjaden | 446,869 | 31,011 | 425,538 | 43,511 |
Jeffrey D. Lorenger | 663,581 | 46,050 | ||
Vincent P. Berger | 295,881 | 20,533 | ||
Jerald K. Dittmer | 665,396 | 46,176 |
(1) | The Black-Scholes option value for award purposes was |
Name | Targeted Value of Stock Options Granted in June 2018 ($)(1) | Stock Options Granted (#) |
Jeffrey D. Lorenger | 588,515 | 64,389 |
(1) | The Black-Scholes option value for award purposes was $10.92 and differs from the Black-Scholes option value calculated in accordance with FASB ASC Topic 718, for financial statement reporting purposes ($9.14). The difference between the Black-Scholes option value for award purposes and for financial statement reporting purposes results from utilizing a ten-year option life when calculating the value of an award and a six-year expected option life when reporting the value of the award under FASB ASC Topic 718. Utilization of the ten-year option life when calculating the value of an award results in fewer options granted to executives due to the higher option value produced. |
Grant Date | Vest Date of Award | Number of RSUs | Adjusted Fair Market Value of Award Granted ($) (1) |
August 7, 2018 | August 7, 2020 | 4,645 | 189,377 |
August 7, 2018 | August 7, 2021 | 4,644 | 184,227 |
Total | 9,289 | 373,604 |
(1) | The value for award purposes was $43.06, based on the closing share price on August 7, 2018. This differs from the adjusted fair market value calculated in accordance with FASB ASC Topic 718, for financial statement reporting purposes ($40.77 for units vesting in 2020 and $39.67 for units vesting in 2021). |
2017 Economic Profit Matrix | ||||||
2018 Economic Profit Matrix | 2018 Economic Profit Matrix | |||||
Payout % | 2017-2019 Plan ($M) | 2016-2018 Plan ($M) | 2015-2017 Plan ($M) | 2018-2020 Plan ($M) | 2017-2019 Plan ($M) | 2016-2018 Plan ($M) |
25% | 25 | 45 | 58 | 23.1 | 59.2 | 54.7 |
100% | 45 | 69 | 91 | 42.3 | 83.4 | 87.3 |
200% | 71 | 84 | 130 | 56.4 | 94.3 | 114.9 |
Name | Long-Term Performance Plan | Target Award for 2017 Performance Period ($) | Actual 2017 Performance Period Achievement (%) | Award Earned for 2017 Performance Period Achievement ($) | Long-Term Performance Plan | Target Award for 2018 Performance Period ($) | Actual 2018 Performance Period Achievement (%) | Award Earned for 2018 Performance Period Achievement ($) |
Jeffrey D. Lorenger | 2018-2020 | 146,875 | 0 | — | ||||
2017-2019 | 81,764 | 0 | — | |||||
2016-2018 | 77,870 | 0 | — | |||||
Total | 306,509 | 0 | — | |||||
Stan A. Askren | 2017-2019 | 295,270 | 0 | — | 2018-2020 | 305,604 | 0 | — |
2016-2018 | 283,913 | 0 | — | 2017-2019 | 295,270 | 0 | — | |
2015-2017 | 271,688 | 0 | — | 2016-2018 | 283,913 | 0 | — | |
Total | 850,871 | 0 | — | Total | 884,787 | 0 | — | |
Marshall H. Bridges | 2017-2019 | 48,125 | 0 | — | 2018-2020 | 55,350 | 0 | — |
2016-2018 | 33,124 | 0 | — | 2017-2019 | 48,125 | 0 | — | |
2015-2017 | 31,850 | 0 | — | 2016-2018 | 33,124 | 0 | — | |
Total | 113,099 | 0 | — | Total | 136,599 | 0 | — | |
Vincent P. Berger | 2018-2020 | 48,125 | 0 | — | ||||
2017-2019 | 36,458 | 0 | — | |||||
2016-2018 | 37,500 | 0 | — | |||||
Total | 122,083 | 0 | — | |||||
Brandon T. Sieben | 2018-2020 | 27,083 | 0 | — | ||||
2017-2019 | 35,836 | 0 | — | |||||
2016-2018 | 34,375 | 0 | — | |||||
Total | 97,294 | 0 | — | |||||
Kurt A. Tjaden | 2017-2019 | 55,061 | 0 | — | 2018-2020 | 57,000 | 0 | — |
2016-2018 | 52,944 | 0 | — | 2017-2019 | 55,061 | 0 | — | |
2015-2017 | 50,907 | 0 | — | 2016-2018 | 52,944 | 0 | — | |
Total | 158,912 | 0 | — | Total | 165,005 | 0 | — | |
Jeffrey D. Lorenger | 2017-2019 | 81,764 | 0 | — | ||||
2016-2018 | 77,870 | 0 | — | |||||
2015-2017 | 65,202 | 0 | — | |||||
Total | 224,836 | 0 | — | |||||
Vincent P. Berger | 2017-2019 | 36,458 | 0 | — | ||||
2016-2018 | 37,500 | 0 | — | |||||
2015-2017 | 37,500 | 0 | — | |||||
Total | 111,458 | 0 | — | |||||
Jerald K. Dittmer | 2017-2019 | 81,988 | 0 | — | ||||
2016-2018 | 79,292 | 0 | — | |||||
2015-2017 | 66,777 | 0 | — | |||||
Total | 228,057 | 0 | — |
Position | $ Value of Shares |
5.0 x Base Salary | |
Operating Company (Unit) Presidents, Chief Financial Officer, and Executive and Senior Vice Presidents | 3.0 x Base Salary |
Other Officers | 2.0 x Base Salary |
Name and Principal Position | Year | Salary ($) | Bonus ($) (6) | Option Awards ($) (7) | Non-Equity Incentive Plan Compensation ($) (8) | All Other Compensation ($) (9) | Total ($) | ||||||||||||||||||
Stan A. Askren Chairman, President and Chief Executive Officer, HNI Corporation | 2017 | 1,174,965 | 12,002 | 2,396,340 | 192,752 | 371,871 | 4,147,930 | ||||||||||||||||||
2016 | 1,130,011 | 14,019 | 2,300,226 | 2,105,993 | 359,542 | 5,909,791 | |||||||||||||||||||
2015 | 1,082,510 | 11,422 | 1,990,903 | 2,452,680 | 345,363 | 5,882,878 | |||||||||||||||||||
Marshall H. Bridges Chief Financial Officer; Senior Vice President, HNI Corporation (1) | 2017 | 375,769 | 10,452 | 390,569 | 41,580 | 54,405 | 872,775 | ||||||||||||||||||
2016 | — | — | — | — | — | — | |||||||||||||||||||
2015 | — | — | — | — | — | — | |||||||||||||||||||
Kurt A. Tjaden Senior Vice President, HNI Corporation; President, HNI International (2) | 2017 | 446,157 | 12,002 | 446,869 | 397,141 | 114,275 | 1,416,444 | ||||||||||||||||||
2016 | 430,064 | 14,019 | 428,943 | 491,983 | 111,399 | 1,476,408 | |||||||||||||||||||
2015 | 413,524 | 11,422 | 373,041 | 546,424 | 99,256 | 1,443,667 | |||||||||||||||||||
Jeffrey D. Lorenger President, Office Furniture (3) | 2017 | 546,354 | 8,168 | 663,581 | 160,200 | 90,541 | 1,468,844 | ||||||||||||||||||
2016 | 464,898 | 9,792 | 630,893 | 465,804 | 104,493 | 1,675,880 | |||||||||||||||||||
2015 | 444,550 | 8,295 | 477,800 | 669,506 | 85,706 | 1,685,857 | |||||||||||||||||||
Vincent P. Berger President, Hearth & Home Technologies; Executive Vice President, HNI Corporation (4) | 2017 | 372,885 | 15,954 | 295,881 | 221,760 | 73,938 | 980,418 | ||||||||||||||||||
2016 | — | — | — | — | — | — | |||||||||||||||||||
2015 | — | — | — | — | — | — | |||||||||||||||||||
Jerald K. Dittmer Senior Vice President, Strategic Development (5) | 2017 | 505,354 | 12,420 | 665,396 | 57,336 | 162,267 | 1,402,773 | ||||||||||||||||||
2016 | 489,441 | 13,727 | 642,416 | 748,923 | 134,595 | 2,029,102 | |||||||||||||||||||
2015 | 473,007 | 11,965 | 489,331 | 721,323 | 115,273 | 1,810,899 |
Name and Principal Position | Year | Salary ($) | Bonus ($) (3) | Stock Awards ($) (4) | Option Awards ($) (5) | Non-Equity Incentive Plan Compensation ($) (6) | All Other Compensation ($) (7) | Total ($) |
Jeffrey D. Lorenger President and CEO, HNI Corporation (1) | 2018 | 778,846 | 9,763 | — | 1,335,082 | 502,652 | 94,034 | 2,720,377 |
2017 | 546,354 | 8,168 | — | 663,581 | 160,200 | 90,541 | 1,468,844 | |
2016 | 464,898 | 9,792 | — | 630,893 | 465,804 | 104,493 | 1,675,880 | |
Stan A. Askren Former Chairman, President and Chief Executive Officer, HNI Corporation (2) | 2018 | 1,216,853 | 9,859 | — | 2,281,537 | 991,625 | 146,597 | 4,646,471 |
2017 | 1,174,965 | 12,002 | — | 2,396,340 | 192,752 | 371,871 | 4,147,930 | |
2016 | 1,130,011 | 14,019 | — | 2,300,226 | 2,105,993 | 359,542 | 5,909,791 | |
Marshall H. Bridges Chief Financial Officer; Senior Vice President, HNI Corporation | 2018 | 438,354 | 9,859 | — | 413,225 | 224,500 | 49,937 | 1,135,875 |
2017 | 375,769 | 10,452 | — | 390,569 | 41,580 | 54,405 | 872,775 | |
Vincent P. Berger President, Hearth & Home Technologies; Executive Vice President, HNI Corporation | 2018 | 405,138 | 17,183 | — | 359,288 | 409,771 | 95,410 | 1,286,790 |
2017 | 372,885 | 15,954 | — | 295,881 | 221,760 | 73,938 | 980,418 | |
Brandon T. Sieben President, Allsteel | 2018 | 345,673 | 6,820 | 373,604 | 202,192 | 32,550 | 37,645 | 998,484 |
Kurt A. Tjaden President, HNI International; Senior Vice President, HNI Corporation | 2018 | 461,846 | 9,859 | — | 425,538 | 393,267 | 85,200 | 1,375,710 |
2017 | 446,157 | 12,002 | — | 446,869 | 397,141 | 114,275 | 1,416,444 | |
2016 | 430,064 | 14,019 | — | 428,943 | 491,983 | 111,399 | 1,476,408 |
(3) |
The amounts in this column reflect the payments of cash profit-sharing during calendar years 2018, 2017 |
(4) | The |
(5) | The amounts in this column reflect the aggregate grant date fair value of stock options granted in 2018, 2017 and 2016 under the Stock Plans computed in accordance with FASB ASC Topic 718. Assumptions used in the calculations of these amounts are included in the footnote titled "Stock-Based Compensation" to the Corporation's audited financial statements for 2018, 2017, and 2016 in the Corporation's Annual Report on Form 10-K for the year ended December |
(6) | The amounts in this column include incentive compensation awards earned for the |
(7) | The amounts in this column include the Corporation's contributions to the Retirement Plan, the dollar value of Corporation-paid life insurance premiums under the Life Insurance Plan, both of which are generally available to all members, and the dollar value of Common Stock paid under the SIP. Contributions under the Retirement Plan in 2018, 2017 |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards | |||||||||||||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) | ||||||||||||||||||
Stan A. Askren | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 166,297 | 46.62 | 2,396,340 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 221,453 | 885,810 | 1,771,620 | ||||||||||||||||||||||
Annual Incentive Plan | 538,572 | 1,417,296 | 2,621,998 | ||||||||||||||||||||||
Marshall H. Bridges | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 27,104 | 46.62 | 390,569 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 36,094 | 144,375 | 288,750 | ||||||||||||||||||||||
Annual Incentive Plan | 107,615 | 283,197 | 523,914 | ||||||||||||||||||||||
Kurt A. Tjaden | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 31,011 | 46.62 | 446,869 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 41,296 | 165,184 | 330,368 | ||||||||||||||||||||||
Annual Incentive Plan | 129,960 | 342,000 | 632,700 | ||||||||||||||||||||||
Jeffrey D. Lorenger | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 46,050 | 46.62 | 663,581 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 61,323 | 245,291 | 490,582 | ||||||||||||||||||||||
Annual Incentive Plan | 171,000 | 450,000 | 832,500 | ||||||||||||||||||||||
Vincent P. Berger | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 20,533 | 46.62 | 295,881 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 27,344 | 109,375 | 218,750 | ||||||||||||||||||||||
Annual Incentive Plan | 109,725 | 288,750 | 534,888 | ||||||||||||||||||||||
Jerald K. Dittmer | |||||||||||||||||||||||||
Stock Options | 2/15/2017 | 46,176 | 46.62 | 665,396 | |||||||||||||||||||||
2017-2019 Long-Term Performance Plan | 61,491 | 245,965 | 491,930 | ||||||||||||||||||||||
Annual Incentive Plan | 143,341 | 377,213 | 697,844 |
Name | Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Closing Price on Grant Date ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) | ||||||||||
Threshold ($) | Target ($) | Maximum ($) | |||||||||||||||
Jeffrey D. Lorenger | |||||||||||||||||
Stock Options | 2/14/2018 | 76,336 | 38.68 | 746,566 | |||||||||||||
Stock Options | 6/28/2018 | 64,389 | 37.29 | 588,515 | |||||||||||||
2018-2020 Long-Term Performance Plan | 75,000 | 300,000 | 600,000 | ||||||||||||||
2018-2020 Long-Term Performance Plan | 58,594 | 234,375 | 468,750 | ||||||||||||||
Annual Incentive Plan | 334,436 | 880,096 | 1,628,178 | ||||||||||||||
Stan A. Askren | |||||||||||||||||
Stock Options | 2/14/2018 | 233,286 | 38.68 | 2,281,537 | |||||||||||||
2018-2020 Long-Term Performance Plan | 229,203 | 916,813 | 1,833,626 | ||||||||||||||
Annual Incentive Plan | 557,423 | 1,466,902 | 2,713,769 | ||||||||||||||
Marshall H. Bridges | |||||||||||||||||
Stock Options | 2/14/2018 | 42,252 | 38.68 | 413,225 | |||||||||||||
2018-2020 Long-Term Performance Plan | 41,513 | 166,050 | 332,100 | ||||||||||||||
Annual Incentive Plan | 126,198 | 332,100 | 614,385 | ||||||||||||||
Vincent P. Berger | |||||||||||||||||
Stock Options | 2/14/2018 | 36,737 | 38.68 | 359,288 | |||||||||||||
2018-2020 Long-Term Performance Plan | 36,094 | 144,375 | 288,750 | ||||||||||||||
Annual Incentive Plan | 118,503 | 311,850 | 576,923 | ||||||||||||||
Brandon T. Sieben | |||||||||||||||||
Stock Options | 2/14/2018 | 20,674 | 38.68 | 202,192 | |||||||||||||
Restricted Stock Units | 8/7/2018 | 9,289 | 43.06 | 373,604 | |||||||||||||
2018-2020 Long-Term Performance Plan | 20,313 | 81,250 | 162,500 | ||||||||||||||
Annual Incentive Plan | 99,750 | 262,500 | 485,625 | ||||||||||||||
Kurt A. Tjaden | |||||||||||||||||
Stock Options | 2/14/2018 | 43,511 | 38.68 | 425,538 | |||||||||||||
2018-2020 Long-Term Performance Plan | 42,750 | 171,000 | 342,000 | ||||||||||||||
Annual Incentive Plan | 134,520 | 354,000 | 654,900 |
Name | Option Awards | |||
Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable (1) | Option Exercise Price ($) | Option Expiration Date | |
Stan A. Askren | 226,909 | 23.99 | 2/17/20 | |
140,842 | 31.98 | 2/16/21 | ||
218,364 | 25.46 | 2/15/22 | ||
166,166 | 31.79 | 2/13/23 | ||
167,791 | 34.78 | 2/12/24 | ||
107,908 | 51.54 | 2/18/25 | ||
262,883 | 32.03 | 2/17/26 | ||
166,297 | 46.62 | 2/15/27 | ||
Marshall H. Bridges | 2,500 | 10.36 | 2/23/19 | |
3,599 | 31.98 | 2/16/21 | ||
3,500 | 31.98 | 2/16/21 | ||
5,860 | 25.46 | 2/15/22 | ||
4,416 | 31.79 | 2/13/23 | ||
5,220 | 34.78 | 2/12/24 | ||
4,217 | 51.54 | 2/18/25 | ||
10,223 | 32.03 | 2/17/26 | ||
27,104 | 46.62 | 2/15/27 | ||
Kurt A. Tjaden | 48,000 | 23.99 | 2/17/20 | |
30,412 | 31.98 | 2/16/21 | ||
47,151 | 25.46 | 2/15/22 | ||
35,709 | 31.79 | 2/13/23 | ||
31,289 | 34.78 | 2/12/24 | ||
20,219 | 51.54 | 2/18/25 | ||
49,022 | 32.03 | 2/17/26 | ||
31,011 | 46.62 | 2/15/27 | ||
Jeffrey D. Lorenger | 12,182 | 23.99 | 2/17/20 | |
26,725 | 31.98 | 2/16/21 | ||
44,067 | 25.46 | 2/15/22 | ||
58,540 | 31.79 | 2/13/23 | ||
39,617 | 34.78 | 2/12/24 | ||
25,897 | 51.54 | 2/18/25 | ||
72,102 | 32.03 | 2/17/26 | ||
46,050 | 46.62 | 2/15/27 | ||
Vincent P. Berger | 8,739 | 23.99 | 2/17/20 | |
3,831 | 31.98 | 2/16/21 | ||
3,500 | 31.98 | 2/16/21 | ||
5,996 | 25.46 | 2/15/22 | ||
4,628 | 31.79 | 2/13/23 | ||
4,084 | 34.78 | 2/12/24 | ||
4,965 | 51.54 | 2/18/25 | ||
11,574 | 32.03 | 2/17/26 | ||
6,594 | 44.04 | 5/10/26 | ||
20,533 | 46.62 | 2/15/27 |
Name | Option Awards | Stock Awards | |||||||||
Securities Underlying Unexercised Options Exercisable (#) | Securities Underlying Unexercised Options Unexercisable (#) (1) (2) | Option Exercise Price ($) | Option Expiration Date | Unvested Shares (#) (3) | Market value of unvested shares ($) (4) | ||||||
Jeffrey D. Lorenger | 12,182 | 23.99 | 2/17/20 | ||||||||
26,725 | 31.98 | 2/16/21 | |||||||||
44,067 | 25.46 | 2/15/22 | |||||||||
58,540 | 31.79 | 2/13/23 | |||||||||
39,617 | 34.78 | 2/12/24 | |||||||||
25,897 | 51.54 | 2/18/25 | |||||||||
72,102 | 32.03 | 2/17/26 | |||||||||
46,050 | 46.62 | 2/15/27 | |||||||||
76,336 | 38.68 | 2/14/28 | |||||||||
64,389 | 37.29 | 6/28/28 | |||||||||
Stan A. Askren | 140,842 | 31.98 | 2/16/21 | ||||||||
163,773 | 25.46 | 2/15/22 | |||||||||
166,166 | 31.79 | 2/13/23 | |||||||||
167,791 | 34.78 | 2/12/24 | |||||||||
107,908 | 51.54 | 2/18/25 | |||||||||
262,883 | 32.03 | 2/17/26 | |||||||||
166,297 | 46.62 | 2/15/27 | |||||||||
233,286 | 38.68 | 2/14/28 | |||||||||
Marshall H. Bridges | 7,099 | 31.98 | 2/16/21 | ||||||||
5,860 | 25.46 | 2/15/22 | |||||||||
4,416 | 31.79 | 2/13/23 | |||||||||
5,220 | 34.78 | 2/12/24 | |||||||||
4,217 | 51.54 | 2/18/25 | |||||||||
10,223 | 32.03 | 2/17/26 | |||||||||
27,104 | 46.62 | 2/15/27 | |||||||||
42,252 | 38.68 | 2/14/28 | |||||||||
Vincent P. Berger | 7,331 | 31.98 | 2/16/21 | ||||||||
5,996 | 25.46 | 2/15/22 | |||||||||
4,628 | 31.79 | 2/13/23 | |||||||||
4,084 | 34.78 | 2/12/24 | |||||||||
4,965 | 51.54 | 2/18/25 | |||||||||
11,574 | 32.03 | 2/17/26 | |||||||||
6,594 | 44.04 | 5/10/26 | |||||||||
20,533 | 46.62 | 2/15/27 | |||||||||
36,737 | 38.68 | 2/14/28 | |||||||||
Brandon T. Sieben | 5,888 | 31.79 | 2/13/23 | ||||||||
5,670 | 34.78 | 2/12/24 |
Jerald K. Dittmer | 25,750 | 31.98 | 2/16/21 | |
53,143 | 25.46 | 2/15/22 | ||
39,956 | 31.79 | 2/13/23 | ||
41,042 | 34.78 | 2/12/24 | ||
26,522 | 51.54 | 2/18/25 | ||
73,419 | 32.03 | 2/17/26 | ||
46,176 | 46.62 | 2/15/27 |
3,664 | 51.54 | 2/18/25 | |||||||||
10,610 | 32.03 | 2/17/26 | |||||||||
6,728 | 46.62 | 2/15/27 | |||||||||
20,674 | 38.68 | 2/14/28 | |||||||||
9,289 | 326,973 | ||||||||||
Kurt A. Tjaden | 35,709 | 31.79 | 2/13/23 | ||||||||
31,289 | 34.78 | 2/12/24 | |||||||||
20,219 | 51.54 | 2/18/25 | |||||||||
49,022 | 32.03 | 2/17/26 | |||||||||
31,011 | 46.62 | 2/15/27 | |||||||||
43,511 | 38.68 | 2/14/28 |
(1) | All of Mr. Askren's stock options vested upon his retirement. |
(2) | As of December |
(3) | Fifty percent of Mr. Sieben's RSUs will vest August 7, 2020 and the remainder will vest August 7, 2021. |
(4) | The market value of the shares was calculated using the closing share price, $35.20, on December 28, 2018, the last trading day of fiscal 2018. |
Option Awards | ||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) (1) | ||
Jeffrey D. Lorenger | — | — | ||
Stan A. Askren | 281,500 | 4,045,888 | ||
Marshall H. Bridges | 2,500 | 68,825 | ||
Vincent P. Berger | 8,739 | 126,876 | ||
Brandon T. Sieben | — | — | ||
Kurt A. Tjaden | 125,563 | 1,297,277 |
Option Awards | ||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) (1) | ||
Stan A. Askren | 112,644 | 3,250,418 | ||
Marshall H. Bridges | — | — | ||
Kurt A. Tjaden | — | — | ||
Jeffrey D. Lorenger | — | — | ||
Vincent P. Berger | — | — | ||
Jerald K. Dittmer | — | — |
Name | Date of Exercise | Number of Shares Acquired on Exercise (#) | Option Exercise Price ($/Sh) | Transaction Type | Sale or Closing Price on Date of Exercise ($/Sh) (1) | Value Realized on Exercise ($) | ||||
Stan A. Askren | 3/20/2017 | 2,764 | 10.36 | Exercise and Sell | 46.51 | 99,919 | ||||
3/24/2017 | 3,100 | 10.36 | Exercise and Sell | 46.01 | 110,515 | |||||
3/31/2017 | 5,400 | 10.36 | Exercise and Sell | 46.00 | 192,456 | |||||
4/17/2017 | 11,264 | 10.36 | Exercise and Sell | 46.01 | 401,562 | |||||
6/2/2017 | 11,264 | 10.36 | Exercise and Sell | 46.01 | 401,562 | |||||
8/31/2017 | 12,000 | 10.36 | Exercise and Sell | 36.44 | 312,960 | |||||
9/20/2017 | 12,000 | 10.36 | Exercise and Sell | 37.78 | 329,040 | |||||
10/17/2017 | 12,000 | 10.36 | Exercise and Sell | 42.42 | 384,720 | |||||
12/1/2017 | 4,762 | 10.36 | Sell to Cover | 35.21 | 118,336 | |||||
12/04/2017 | 4,762 | 10.36 | Sell to Cover | 34.67 | 115,764 | |||||
12/05/2017 | 4,762 | 10.36 | Sell to Cover | 33.79 | 111,574 | |||||
12/06/2017 | 4,762 | 10.36 | Sell to Cover | 33.50 | 110,193 | |||||
12/7/2017 | 4,762 | 10.36 | Sell to Cover | 33.55 | 110,431 | |||||
12/8/2017 | 4,762 | 10.36 | Sell to Cover | 33.68 | 111,050 | |||||
12/11/2017 | 4,762 | 10.36 | Sell to Cover | 33.66 | 110,955 | |||||
12/12/2017 | 4,762 | 10.36 | Sell to Cover | 34.09 | 113,002 | |||||
12/13/2017 | 4,756 | 10.36 | Sell to Cover | 34.83 | 116,379 |
Name | Executive Contributions in Last FY ($) (1) | Aggregate Earnings in Last FY ($) (2) | Aggregate Balance at Last FYE ($) (3) | |||
Stan A. Askren | 326,586 | (1,022,908) | 2,803,318 | |||
Marshall H. Bridges | 0 | 0 | 0 | |||
Kurt A. Tjaden | 0 | 0 | 0 | |||
Jeffrey D. Lorenger | 0 | 0 | 0 | |||
Vincent P. Berger | 0 | 0 | 0 | |||
Jerald K. Dittmer | 0 | 0 | 0 |
Name | Executive Contributions in Last FY ($) (1) | Aggregate Earnings in Last FY ($) (2) | Aggregate Balance at Last FYE ($) (3) | |||
Jeffrey D. Lorenger | — | — | — | |||
Stan A. Askren | 348,493 | (148,699 | ) | 2,949,998 | ||
Marshall H. Bridges | — | — | — | |||
Vincent P. Berger | — | — | — | |||
Brandon T. Sieben | — | — | — | |||
Kurt A. Tjaden | — | — | — |
(1) | The amount of Mr. Askren's contribution before taxes, |
(2) | The reported dollar value is the sum of (i) share price appreciation (or depreciation) in the account balance during |
(3) | The reported dollar value is calculated by multiplying 83,806, the number of nonvoting share units in Mr. Askren's account at the end of 2018, by $35.20, the closing price of a share of Common Stock on December 28, 2018, the last trading day of 2018. |
1. |
2. | For purposes of identifying our “median member” in 2017, we selected October 1, 2017 as the date upon which we identified the “median member.” |
3. |
4. |
5. |
6. |
7. | For the annual total compensation of the “median member,” we identified and calculated the elements of the member’s compensation for |
8. | For the annual total compensation of our CEO, we |
Name | Cash Severance Under CIC Agreement ($) (1) | Additional Benefits Under CIC Agreement ($) (2) | Annual Incentive Plan Acceleration ($) (3) | Long-Term Performance Plan Acceleration ($) (4) | Stock Options Acceleration ($) (5) | Excise Tax Gross-Up Under CIC Agreement ($) (6) | Total ($) | Cash Payment Under CIC Agreement ($) (1) | Total Value of Benefits Under CIC Agreement ($) (2) | Annual Incentive Plan Acceleration ($) (3) | Long-Term Performance Plan Acceleration ($) (4) | Stock Option Acceleration ($) (5) | Total ($) |
Stan A. Askren | 8,957,496 | 51,946 | 192,752 | 762,953 | 2,355,183 | 0 | 12,320,330 | ||||||
Jeffrey D. Lorenger | 2,916,741 | 50,808 | 502,652 | 243,342 | 228,563 | 3,942,106 | |||||||
Marshall H. Bridges | 1,240,023 | 37,183 | 41,580 | 98,246 | 86,642 | 0 | 1,503,674 | 1,081,918 | 37,287 | 224,500 | 98,795 | 32,407 | 1,474,907 |
Vincent P. Berger | 1,207,730 | 57,709 | 409,771 | 90,139 | 36,690 | 1,802,039 | |||||||
Kurt A. Tjaden | 1,714,515 | 53,822 | 397,141 | 142,459 | 439,189 | 0 | 2,747,126 | 1,812,030 | 50,897 | 393,267 | 122,357 | 155,400 | 2,533,951 |
Jeffrey D. Lorenger | 2,299,460 | 48,380 | 160,200 | 202,698 | 621,696 | 0 | 3,332,434 | ||||||
Vincent P. Berger | 1,075,322 | 52,046 | 221,760 | 100,306 | 91,172 | 0 | 1,540,606 | ||||||
Jerald K. Dittmer | 2,683,743 | 41,620 | 57,336 | 205,846 | 635,709 | 0 | 3,624,254 |
(1) | Amounts in this column include the following: (i) an amount equal to two times (three times for Mr. |
(2) | Represents the value of the following benefits provided following termination of employment under the CIC Agreements for each Named Executive Officer: medical and dental benefits for 18 months, group life insurance benefits for 24 months, and the value of the Corporation’s required contributions to the Retirement Plan. |
(3) | Represents the value of the annual incentive award earned for |
(4) | Represents the estimated |
Name | Cash Payment Under CIC Agreement ($) | Total Value of Benefits Under CIC Agreement ($) | Annual Incentive Plan Acceleration ($) (1) | Long-Term Performance Plan Acceleration ($) (2) | Stock Option Acceleration ($) (3) | Total ($) |
Stan A. Askren | 0 | 0 | 2,058,840 | 762,953 | 2,355,183 | 5,176,976 |
Marshall H. Bridges | 0 | 0 | 171,200 | 98,246 | 86,642 | 356,088 |
Kurt A. Tjaden | 0 | 0 | 488,710 | 142,459 | 439,189 | 1,070,358 |
Jeffrey D. Lorenger | 0 | 0 | 449,268 | 202,698 | 621,696 | 1,273,662 |
Vincent P. Berger | 0 | 0 | 225,670 | 100,306 | 91,172 | 417,148 |
Jerald K. Dittmer | 0 | 0 | 658,940 | 205,846 | 635,709 | 1,500,495 |
Represents the value of accelerating the vesting of stock options not otherwise vested in accordance with the Stock Plans. These options will remain exercisable until the expiration date established at the time of award. |
Name | Cash Payment Under CIC Agreement ($) | Total Value of Benefits Under CIC Agreement ($) | Annual Incentive Plan Acceleration ($) (1) | Long-Term Performance Plan Acceleration ($) (2) | Stock Option Acceleration ($) (3) | Total ($) | ||
Jeffrey D. Lorenger | — | — | 502,652 | 243,342 | 228,563 | 974,557 | ||
Marshall H. Bridges | — | — | 224,500 | 98,795 | 32,407 | 355,702 | ||
Vincent P. Berger | — | — | 409,771 | 90,139 | 36,690 | 536,600 | ||
Kurt A. Tjaden | — | — | 430,139 | 122,357 | 155,400 | 707,896 |
(1) | Represents the higher of the value of the annual incentive award earned for 2018, or paid in respect to the three full fiscal years immediately prior to the CIC effective date. |
(2) | Represents the estimated 2016-2018 Plan, 2017-2019 Plan, and 2018-2020 Plan award payable. See Economic Profit Assumptions in footnote 4 of the table titled Value in Event of Involuntary Termination or Voluntary Termination for Good Reason Following a Change in Control on Page 35 of this Proxy Statement. |
(3) | Represents the value of accelerating the vesting of stock options not otherwise vested in accordance with the Stock Plans. These options will remain exercisable until the expiration date established at the time of award. |
Name | Life Insurance Proceeds ($) (1) | Retirement & Profit Sharing (2) | Annual Incentive Plan Acceleration ($) (3) | Long-Term Performance Plan Acceleration ($) (4) | Stock Options Acceleration ($) (5) | Total Value in Event of Death ($) | Total Value in Event of Disability ($) | Total Value in Event of Retirement ($) | Life Insurance Proceeds ($) (1) | Retirement & Profit Sharing (2) | Annual Incentive Plan Acceleration ($) (3) | Long-Term Performance Plan Acceleration ($) (4) | Stock Options Acceleration ($) (5) | Total Value in Event of Death ($) | Total Value in Event of Disability ($) | Total Value in Event of Retirement ($) |
Stan A. Askren | 150,000 | 23,311 | 192,752 | 762,953 | 2,355,183 | 3,484,199 | 3,334,199 | 3,334,199 | ||||||||
Jeffrey D. Lorenger | 150,000 | 21,455 | 502,652 | 243,342 | 228,563 | 1,146,012 | 996,012 | N/A | ||||||||
Marshall H. Bridges | 150,000 | 21,867 | 41,580 | 98,246 | 86,642 | 398,335 | 248,335 | N/A | 150,000 | 21,544 | 224,500 | 98,795 | 32,407 | 527,246 | 377,246 | N/A |
Vincent P. Berger | 150,000 | 28,355 | 409,771 | 90,139 | 36,690 | 714,955 | 564,955 | N/A | ||||||||
Kurt A. Tjaden | 150,000 | 25,188 | 397,141 | 142,459 | 439,189 | 1,153,977 | 1,003,977 | N/A | 150,000 | 21,544 | 393,267 | 122,357 | 155,400 | 842,568 | 692,568 | 692,568 |
Jeffrey D. Lorenger | 150,000 | 19,746 | 160,200 | 202,698 | 621,696 | 1,154,340 | 1,004,340 | N/A | ||||||||
Vincent P. Berger | 150,000 | 23,412 | 221,760 | 100,306 | 91,172 | 586,650 | 436,650 | N/A | ||||||||
Jerald K. Dittmer | 150,000 | 23,701 | 57,336 | 205,846 | 635,709 | 1,072,592 | 922,592 | 922,592 |
(1) | Represents the proceeds of the life insurance policy maintained by the Corporation for each of the Named Executive Officer under the Life Insurance Plan. The policy amount is equal to the lesser of the insured's annual base salary or $150,000. This amount only applies to the Total Value in Event of Death. |
(2) | Represents the value of the Corporation’s required contributions to the Retirement Plan. |
(3) | Represents the value of the annual incentive award earned for |
(4) | Represents the estimated |
(5) | Represents the value of accelerating the vesting of stock options not otherwise vested in accordance with the Stock Plans. These options will remain exercisable until two years from the date of death or disability, and |
THE BOARD RECOMMENDS A VOTE "FOR" ADOPTION OF THE RESOLUTION APPROVING THE COMPENSATION OF THE NAMED EXECUTIVE OFFICERS AS DISCLOSED IN THIS PROXY STATEMENT. |
Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class | Amount and Nature of Beneficial Ownership | Percent of Class | ||
State Farm Insurance Companies (1) One State Farm Plaza Bloomington, Illinois 61710 | 7,384,089 | (2) | 17.0% | 7,366,400 | (2) | 16.9% |
BlackRock, Inc. (3) 55 East 52nd Street New York, New York 10055 | 4,445,264 | (4) | 10.2% | 4,949,035 | (4) | 11.4% |
The Vanguard Group, Inc. (5) 100 Vanguard Boulevard Malvern, PA 19355 | 3,757,450 | (6) | 8.6% | 4,196,167 | (6) | 9.6% |
(1) | State Farm Insurance Companies consists of the following entities: State Farm Mutual Automobile Insurance Company; State Farm Fire and Casualty Company; State Farm Investment Management Corp.; State Farm Insurance Companies Employee Retirement Trust; State Farm |
(2) | Information is based on a Schedule 13G filed February |
(3) | The following subsidiaries of BlackRock, Inc. hold the shares of Common Stock noted: BlackRock Institutional Trust Company, N.A.; BlackRock Fund Advisors; BlackRock Asset Management Canada Limited; BlackRock Asset Management Schweiz AG; BlackRock Advisors, LLC; BlackRock Investment Management, LLC; BlackRock Financial Management, Inc.; BlackRock Asset Management Ireland Limited; BlackRock Investment Management (Australia) Limited; BlackRock Investment Management (UK) Limited; and BlackRock (Netherlands) B.V. |
(4) | Information is based on a Schedule 13G/A filed January |
(5) | The following subsidiaries of The Vanguard Group, Inc. hold the shares of Common Stock noted: Vanguard Fiduciary Trust Company and Vanguard Investments Australia, Ltd. |
(6) | Information is based on a Schedule 13G/A filed February |
Name of Beneficial Owner | Common Stock (1) | Common Stock Units (2) | Stock Options Exercisable as of the Record Date or Within 60 Days Thereof | Total Stock and Stock-Based Holdings | Percent of Class (3) |
Stan A. Askren | 159,879 | 81,930 | 920,072 | 1,161,881 | 2.7% |
Mary A. Bell | 16,996 | 30,931 | — | 47,927 | * |
Miguel M. Calado | 50,207 | — | — | 50,207 | * |
Cheryl A. Francis | 60,746 | — | — | 60,746 | * |
John R. Hartnett | 5,747 | — | — | 5,747 | * |
Mary K.W. Jones | 5,512 | 2,396 | — | 7,908 | * |
Larry B. Porcellato | 17,477 | 19,303 | — | 36,780 | * |
Abbie J. Smith | 6,990 | 50,740 | — | 57,730 | * |
Brian E. Stern | 44,836 | — | — | 44,836 | * |
Ronald V. Waters, III | 19,193 | 14,961 | — | 34,154 | * |
Marshall H. Bridges | 9,783 | — | 25,095 | 34,878 | * |
Kurt A. Tjaden | 40,805 | — | 192,561 | 233,366 | * |
Jeffrey D. Lorenger | 28,283 | — | 181,131 | 209,414 | * |
Vincent P. Berger | 7,643 | — | 30,778 | 38,421 | * |
Jerald K. Dittmer | 33,809 | — | 306,008 | 339,817 | * |
All Directors and executive officers as a group – (17 persons) | 509,679 | 200,261 | 1,397,974 | 2,107,914 | 4.9% |
Name of Beneficial Owner | Common Stock (1) | Common Stock Units (2) | Stock Options Exercisable as of the Record Date or Within 60 Days Thereof | Total Stock and Stock-Based Holdings | Percent of Class (3) |
Stan A. Askren | 29,591 | 87,390 | 1,245,173 | 1,362,154 | 3.1% |
Mary A. Bell | 21,921 | 31,884 | — | 53,516 | * |
Miguel M. Calado | 50,287 | — | — | 50,287 | * |
Cheryl A. Francis | 63,803 | — | — | 63,803 | * |
John R. Hartnett | 10,510 | — | — | 10,510 | * |
Mary K.W. Jones | 9,854 | 2,469 | — | 12,323 | * |
Larry B. Porcellato | 20,534 | 19,897 | — | 40,431 | * |
Abbie J. Smith | 11,332 | 52,303 | — | 63,635 | * |
Brian E. Stern | 47,893 | — | — | 47,893 | * |
Ronald V. Waters, III | 17,250 | 15,422 | — | 32,672 | * |
Marshall H. Bridges | 11,962 | — | 26,812 | 38,774 | * |
Kurt A. Tjaden | 42,687 | — | 87,217 | 129,904 | * |
Jeffrey D. Lorenger | 29,796 | — | 207,028 | 236,824 | * |
Vincent P. Berger | 8,948 | — | 27,004 | 35,952 | * |
Brandon T. Sieben | 23,009 | — | 15,222 | 38,231 | * |
All Directors and executive officers as a group – (18 persons) | 407,270 | 121,976 | 421,038 | 950,284 | 2.2% |
(1) | Includes restricted shares held by executive officers over which they have voting power but not investment power, shares held directly or in joint tenancy, shares held in trust, by broker, bank or nominee or other indirect means and over which the individual or member of the group has sole voting or shared voting and/or investment power. Each individual or member of the group has sole voting and/or investment power with respect to the shares shown in the table above, except Mr. Askren's spouse shares voting and investment power with respect to 7,588 of the |
(2) | Indicates the nonvoting share units credited to the account of the named individual or members of the group, as applicable, under either the Deferred Plan or the Directors Deferred Plan. For additional information on the Deferred Plan, see "Additional Compensation Programs and Policies – Deferred Compensation Plan" on page |
(3) | * less than 1%. |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (b) (3) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) | |||
Equity Compensation Plans approved by security holders | 3,897,620 (1) | 34.63 | 4,417,075 (4) | |||
Equity Compensation Plans not approved by security holders | 242,322 (2) | –– | 606,557 (5) | |||
Total | 4,139,942 | 34.63 | 5,023,632 |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (b) (3) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) | |||
Equity Compensation Plans approved by security holders | 4,014,099 (1) | 36.89 | 3,496,672 (4) | |||
Equity Compensation Plans not approved by security holders | 242,956 (2) | –– | 598,284 (5) | |||
Total | 4,257,055 | 36.89 | 4,094,956 |
(1) | Includes: (i) shares to be issued upon the exercise of outstanding stock options granted under the Stock Plans – 3,627,005 (2,858,982 under the 2017 Stock Plan, |
(2) | Includes the nonvoting share units credited to the account of individual executive officers or Directors under either the Deferred Plan – |
(3) | This column does not take into account any of the RSUs, Long-Term Performance Plan awards, Annual Incentive Plan awards or nonvoting share units discussed in Notes 1 and 2 above. |
(4) | Includes shares available for issuance under the Stock Plan – |
(5) | Includes nonvoting share units available for issuance under the Deferred Plan – |
HNI CORPORATION 600 EAST SECOND STREET MUSCATINE, IA 52761 | VOTE BY INTERNET - www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information. Vote by 11:59 p.m. ET on 05/06/2019 for shares held directly and by 11:59 p.m. ET on 05/02/2019 for shares held in a plan. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. | |
ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS If you would like to reduce the costs incurred by the Corporation in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years. | ||
VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 p.m. ET on 05/06/2019 for shares held directly and by 11:59 p.m. ET on 05/02/2019 for shares held in a plan. | ||
VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. |
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: | |
E04494-P71140 | KEEP THIS PORTION FOR YOUR RECORDS |
DETACH AND RETURN THIS PORTION ONLY | |
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. |
HNI CORPORATION | |||||||||||||||||||||||
The Board of Directors recommends you vote FOR the following: | |||||||||||||||||||||||
1. | Election of Directors | For | Against | Abstain | |||||||||||||||||||
1a. Mary K.W. Jones | ¨ | ¨ | ¨ | ||||||||||||||||||||
1b. Jeffrey D. Lorenger | ¨ | ¨ | ¨ | ||||||||||||||||||||
1c. Larry B. Porcellato | ¨ | ¨ | ¨ | ||||||||||||||||||||
1d. Abbie J. Smith | ¨ | ¨ | ¨ | ||||||||||||||||||||
The Board of Directors recommends you vote FOR the following: | For | Against | Abstain | ||||||||||||||||||||
2. | Ratify the Audit Committee's selection of KPMG LLP as the Corporation's independent registered public accountant for fiscal year ending December 28, 2019. | ¨ | ¨ | ¨ | |||||||||||||||||||
3. | Advisory vote to approve Named Executive Officer compensation. | ¨ | ¨ | ¨ | |||||||||||||||||||
NOTE: Such other business as may properly come before the meeting or any adjournment thereof will be voted by your proxies in their discretion. | |||||||||||||||||||||||
Yes | No | ||||||||||||||||||||||
Please indicate if you plan to attend this meeting. | ¨ | ¨ | |||||||||||||||||||||
Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. | |||||||||||||||||||||||
Signature [PLEASE SIGN WITHIN BOX] | Date | Signature (Joint Owners) | Date |
E04495-P71140 |
HNI CORPORATION Annual Meeting of Shareholders May 7, 2019 10:30 AM (CDT) This proxy is solicited by the Board of Directors | ||
The shareholder(s) hereby appoint(s) Steven M. Bradford and Marshall H. Bridges, or either of them, as proxies, each with the power to appoint his substitute, and hereby authorize(s) them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of Common Stock of HNI CORPORATION the shareholder(s) is/are entitled to vote at the Annual Meeting of Shareholders to be held at 10:30 AM (CDT) on May 7, 2019, at the HNI Corporate Headquarters, 600 East Second Street, Muscatine, IA 52761, and any adjournment or postponement thereof. | ||
This proxy, when properly executed, will be voted in the manner directed herein. If no direction is made, this proxy will be voted in accordance with the Board of Directors' recommendations. | ||
Continued and to be signed on reverse side | ||