UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934 (Amendment No.)
Filed by the Registrantx
Filed by a Party other than the Registrant¨
Check the appropriate box:
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¨ | Preliminary Proxy Statement |
¨ | Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
x | Definitive Proxy Statement |
¨ | Definitive Additional Materials |
¨ | Soliciting Material Under Rule 14a-12 |
Cohen & Steers, Inc.
(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):
x | No fee required. |
¨ | Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. |
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¨ | 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. |
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April 4, 2008March 23, 2010
Dear Fellow Shareholders:
It is our pleasure to invite you to the Cohen & Steers, Inc. 20082010 Annual Meeting of Shareholders.
We will hold the meeting on Friday, May 9, 2008,7, 2010, beginning at 9:00 a.m., local time, at our corporate headquarters located at 280 Park Avenue, New York, New York 10017.
This booklet includes the Notice of Annual Meeting and the Proxy Statement. The Proxy Statement describes the business that we will conduct at the meeting and provides information about our company. Our 2007Annual Report to Shareholders, which includes our 2009 Annual Report on Form 10-K, and Annual Report to Shareholders accompanyaccompanies these enclosures.
Your vote is very important. Whether you plan to attend the meeting in person or not, we ask you to please review the enclosed material and complete, sign, date and return the enclosed proxy card in the envelope provided. Instead of returning a proxy card, youcast your vote. You may choose to vote your shares by usingvia the Internet, by telephone, by mail or telephone voting options explained on your proxy card.in person at our Annual Meeting.
We look forward to seeing you at the meeting.
Sincerely,
Martin Cohen Co-Chairman and Co-Chief Executive Officer | Robert H. Steers Co-Chairman and Co-Chief Executive Officer |
280 Park Avenue, New York, New York 10017-2013 Tel: (212) 832-3232 Fax: (212) 832-3622
April 4, 2008March 23, 2010
NOTICE OF 20082010 ANNUAL MEETING OF SHAREHOLDERS
To Our Shareholders:
We will hold the Annual Meeting of Shareholders of Cohen & Steers, Inc. at our corporate headquarters located at 280 Park Avenue, New York, New York 10017, on Friday, May 9, 2008,7, 2010, beginning at 9:00 a.m., local time. At our Annual Meeting, we will ask you to:
(1) | Elect |
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Ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the current fiscal year ending December 31, |
Consider any other business that is properly presented at |
You may vote atUnder rules adopted by the Securities and Exchange Commission, we are primarily furnishing proxy materials to our shareholders on the Internet rather than mailing paper copies of the materials to each shareholder. As a result, most shareholders will receive a Notice of Internet Availability of Proxy Materials (“Notice”) and others will receive paper copies of the Proxy Statement, the Proxy card and the Annual MeetingReport. The Notice contains instructions on how to access the Proxy Statement, the Proxy Card and the Annual Report over the Internet, instructions on how to vote your shares, as well as instructions on how to request a paper or any adjournments or postponements thereofelectronic copy of our proxy materials, if you wereso desire. We believe electronic delivery should expedite the receipt of materials, significantly lower costs and help to conserve natural resources.
Whether you received the Notice or paper copies of our proxy materials, the Proxy Statement, the Proxy Card, our Annual Report, and any amendments to the foregoing materials that are required to be furnished to shareholders are available for you to review online by following the instructions contained in the Notice or Proxy Card. If your shares are in an account with a Cohen & Steers shareholderbank or broker and instructions on how to access the proxy materials are not included in your voting instruction form, you may view our proxy materials athttps://materials.proxyvote.com/19247A.
The Board of Directors has fixed the close of business on March 18, 2008.
We have enclosed a Proxy Statement, form12, 2010 as the record date for the determination of proxyshareholders entitled to receive notice of, and self-addressed envelope. Please complete, sign and dateto vote on, all matters presented at our Annual Meeting or any adjournments thereof. Your vote is very important. Whether you plan to attend the enclosed proxy card. Return it promptly in the envelope provided, which requires no postage if mailed in the United States. Instead of returning a proxy card,meeting or not, we ask you to please cast your vote. You may choose to vote your shares by usingvia the Internet, orby telephone, voting options explained on your proxy card. Submitting the proxy before the Annual Meeting will not preclude you from votingby mail or in person at theour Annual Meeting should you decide to attend.Meeting.
By Order of the Board of Directors, |
Francis C. Poli Corporate Secretary |
280 Park Avenue, New York, New York 10017-2013 Tel: (212) 832-3232 Fax: (212) 832-3622
April 4, 2008March 23, 2010
PROXY STATEMENT
These proxy materials are delivered in connection with the solicitation by the Board of Directors of Cohen & Steers, Inc., a Delaware corporation (“Cohen & Steers,” “we” or “our”), of proxies to be voted at our 20082010 Annual Meeting of Shareholders and at any adjournment or postponement thereof.
You are invited to attend our 20082010 Annual Meeting of Shareholders on Friday, May 9, 2008,7, 2010, beginning at 9:00 a.m., local time. The Annual Meeting will be held at our corporate headquarters located at 280 Park Avenue, New York, New York 10017. You may obtain directions to our Annual Meeting location by calling our Corporate Secretary at (212) 832-3232.
ThisWe expect that this Proxy Statement and form ofthe enclosed proxy are beingwill be mailed starting April 4, 2008.and/or made available to each shareholder eligible to vote on or about March 24, 2010.
Items to Be Voted on at theOur Annual Meeting
The items of business scheduled to be voted on at theour Annual Meeting are:
· | the election as directors of |
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the ratification of the appointment of our independent registered public accounting firm for the current fiscal year; and |
· | any other business that is properly presented at |
Board Recommendation
Our Board of Directors recommends that you vote your shares “FOR” each of the six nominees to the Board of Directors “FOR” the approval of the Amended and Restated Stock Incentive Plan and Amended and Restated Annual Incentive Plan,named in this Proxy Statement and “FOR” the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the current fiscal year ending December 31, 2008.2010.
Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting to be Held on May 7, 2010
Under rules adopted by the Securities and Exchange Commission (the “SEC”), we are furnishing proxy materials to our shareholders primarily over the Internet. We believe that this process should expedite shareholders’ receipt of proxy materials, lower the costs of our Annual Meeting and help to conserve natural resources. On or about March 23, 2010, we mailed to most of our shareholders a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access and review the proxy materials, including this Proxy Statement and our Annual Report, on the Internet and instructions on how to vote on the Internet or by telephone. The Notice also contains instructions on how to receive a paper or electronic copy of the proxy materials. If you received a Notice by mail, you will not receive a printed copy of the proxy materials unless you request one. If you received paper copies of our proxy materials, you may also view these materials over the Internet by following the instructions contained in the Notice or Proxy Card.The Proxy Statement and our Annual Report are available atwww.proxyvote.com. If your shares are in an account with a bank or broker and instructions on how to access the proxy materials are not included in your voting instruction form, you may view our proxy materials athttps://materials.proxyvote.com/19247A.
Shareholders Entitled to Vote
Holders of record of our common stock at the close of business on March 18, 200812, 2010 are entitled to receive this notice and to vote their shares of our common stock at theour Annual Meeting. As of March 18, 2008, 41,482,50712, 2010, 42,555,660 shares of our common stock, par value $0.01 per share, were outstanding. Holders of our common stock are entitled to one vote per share.
How to Vote
If you hold your shares directly, you have four ways to vote, as explained on your proxy card.Notice or Proxy Card. If your shares are in an account at a bank or broker, you will receive an instruction card and information on how to give voting instructions to your bank or broker.
You may:Shareholders may vote as follows:
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Voting at theOur Annual Meeting
In the event you mail your proxy and you attend theour Annual Meeting, you may revoke your proxy and cast your vote personally at theour Annual Meeting. If your shares are held in the name of a bank, broker or other holder of record, you must obtain a proxy, executed in your favor, from the holder of record to be able to vote at theour Annual Meeting.
All proxies that have been properly signed and returned and not revoked will be voted in accordance with your instructions at theour Annual Meeting. If you sign and return your proxy cardProxy Card but do not give voting instructions, the shares represented by that proxy will be voted as recommended by the Board of Directors.
Voting on Other Matters
If you sign and return your proxy cardProxy Card and if any other matters are properly presented at theour Annual Meeting for consideration, the persons named in the proxy will have the discretion to vote on those matters for you. At the date this Proxy Statement went to press, we did not know of any other matter to be raised at theour Annual Meeting.
Revocation of Proxies
You have the right to revoke your proxy. This right allows you to change your mind about how your shares will be voted at theour Annual Meeting. You can revoke your proxy at any time before voting is declared closed at the
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our Annual Meeting. You may revoke your proxy by sending a signed proxy with a later date in time for us to receive it before voting is declared closed, or by voting in person at theour Annual Meeting. You may also revoke your proxy by using the telephone or Internet voting options explained on your proxy card.Notice or Proxy Card. You cannot, however, revoke your proxy at theour Annual Meeting if you do not attend in person.
If your proxy is not properly revoked, we will vote your shares as indicated by your most recent valid proxy.
Required Vote
The presence, in person or by proxy, of the holders of a majority in voting power of the stock issued and outstanding and entitled to vote at theour Annual Meeting is necessary to constitute a quorum. Abstentions and broker “non-votes”“broker non-votes” are counted as present and entitled to vote for purposes of determining a quorum. A broker “non-vote”non-vote occurs when a nominee holding shares for a beneficial owner does not vote on a particular proposal because the nominee does not have discretionary voting power for that particular item and has not received instructions from the beneficial owner.Starting this year, under current New York Stock Exchange rules if you do not instruct your broker how to vote with respect to Item 1, your broker may not vote with respect to this proposal.We believe that there can be no broker non-votes on the proposal in Item 2 since brokers have discretion under the New York Stock Exchange rules to vote uninstructed shares on such proposal.
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A pluralityWith respect to Item 1, in an uncontested election of directors, to be elected, a director nominee must receive affirmative votes representing a majority of the voting powervotes cast by the holders of stock present in person or represented by proxy at our Annual Meeting and entitled to vote on the election of directors (a “majority vote”). Abstentions and broker non-votes are not counted as votes “for” or “against” a director nominee and will have no effect on the outcome of the election. In a contested election of directors, to be elected, a director nominee must receive a plurality of the votes of the holders of stock present in person or represented by proxy at our Annual Meeting and entitled to vote on the election of directors. Under our Bylaws, a “contested election” is requiredan election in which, as of the day preceding the date we first transmit our notice of meeting to our shareholders or at any time thereafter, the number of nominees for Item 1 (electiondirector is greater than the number to be elected.
Each incumbent director standing for re-election at our Annual Meeting has agreed to resign, upon acceptance of directors). such resignation by the Board of Directors, if he or she does not receive a majority vote. The Board of Directors must accept or reject such resignation within 90 days following certification of the shareholder vote.
If a director’s resignation offer is not accepted by the Board of Directors, that director will continue to serve until our next annual shareholders’ meeting and his or her successor is duly elected and qualified or until the director’s earlier death, resignation, or removal. The Board of Directors, in its sole discretion, may either fill a vacancy resulting from the Board of Directors accepting a director’s resignation or a director nominee who is not an incumbent director not receiving a majority vote pursuant to the Bylaws or decrease the size of the Board of Directors to eliminate the vacancy.
The affirmative vote of holders of a majority in voting power of the stock present in person or represented by proxy and entitled to vote on the matter is required for Item 2 (the approval of the Amended and Restated Stock Incentive Plan), Item 3 (the approval of the Amended and Restated Annual Incentive Plan); provided that the total votes cast at the Annual Meeting on Items 2 and 3 represent over 50% in interest of our common stock. The affirmative vote of holders of a majority in voting power of the stock present in person or represented by proxy and entitled to vote on the matter is required for Item 4 (ratification of our independent registered public accounting firm).2. Abstentions and broker “non-votes” are not counted in the voting tally for purposes of Item 1. With respect to Items 2, 3 and 4, abstentions and broker “non-votes” will have the same effect as a vote against those items.“against” the proposal in Item 2.
Cost of Proxy Solicitation
We will pay the expenses of soliciting proxies. Proxies may be solicited in person or by mail, telephone, electronic transmission, and facsimile transmission on our behalf by our directors, officers or employees, without additional compensation. We will reimburse brokerage houses and other custodians, nominees, and fiduciaries that are requested to forward soliciting materials to the beneficial owners of the stock held of record by such persons.
List of Shareholders
A list of shareholders entitled to vote at theour Annual Meeting will be available at theour Annual Meeting and for ten days prior to theour Annual Meeting, between the hours of 8:45 a.m. and 4:30 p.m., by written request to the Corporate Secretary, Cohen & Steers, Inc., at 280 Park Avenue, New York, New York 10017. Requests may also be directed to the Corporate Secretary at (212) 832-3232.
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Multiple Copies of Our Annual Report to Shareholders
Our 20072009 Annual Report to shareholders accompanies this Proxy Statement. In order to reduce printing and postage costs, we have undertaken an effort to deliver only one annual report, and one proxy statement or notice, as applicable, to multiple shareholders of record sharing an address. This delivery method, called “householding,” is not being used, however, if we have received contrary instructions from one or more of the shareholders sharing an address. If your household has received only one set of our annual reports and onereport, proxy statement or notice of internet availability of proxy materials, as applicable, we will deliver promptly a separate copy of the 2007our 2009 Annual Report on Form 10-K, the 2007our 2009 Annual Report to Shareholders, and this Proxy Statement or Notice, as applicable, to any shareholder who sends a written request to the Corporate Secretary, Cohen & Steers, Inc., at 280 Park Avenue, New York, New York 10017. Requests may also be directed to the Corporate Secretary at (212) 832-3232. You can also notify us that you would like to receive separate copies of our annual reports, and proxy statementstatements or notices of internet availability of proxy materials in the future by writingsending a written request to our Corporate Secretary.Secretary at the address set forth above or by contacting the Corporate Secretary at (212) 832-3232. If your household is receiving multiple copies of our annual reports, proxy statements and notices of internet availability of proxy materials, and you wish to request delivery of a single copy, you may send a written request to our Corporate Secretary at the address set forth above. Even if your household has received only one set of our annual reportsreport and one proxy statement, a separate proxy cardProxy Card has been provided for each shareholder account. Each proxy cardProxy Card should be signed, dated, and returned in the enclosed self-addressed envelope.
If your household has received multiple copies of our annual reports and proxy statement, you can request the delivery of single copies in the future by marking the designated box on the enclosed proxy card.
If you own shares of common stock through a bank, broker or other nominee and receive more than one set of annual reports, and proxy statement,statements or notices of internet availability of proxy materials, you can contact the holder of recordbank, broker or other nominee to eliminate duplicate mailings.
Important Notice Regarding Internet Availability of Proxy Materials for the Annual Meeting
The proxy materials for the Annual Meeting, including the 2007 Annual Report and Proxy Statement, are available over the Internet by accessing the “Corporate Info” section of our Web site atwww.cohenandsteers.com. Other information on our Web site does not constitute part of the Company’s proxy materials.
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Confidentiality of Voting
We keep all the proxies, ballots, and voting tabulations confidential as a matter of practice. We only let our Inspector of Election, BNY Mellon Shareowner Services,Broadridge Financial Solutions, Inc., examine these documents. Occasionally, shareholders provide written comments on their proxy card,Proxy Card, which are then forwarded to us by BNY Mellon Shareowner Services.Broadridge.
Voting Results
BNY Mellon Shareowner Services,Broadridge, our independent tabulating agent, will count the votes and act as the Inspector of Election. We will publish the voting results in our Quarterlya Current Report on Form 10-Q for the quarter ended June 30, 2008,8-K, which we currently plan to filewill be filed with the Securities and Exchange Commission (the “SEC”) in August 2008.SEC on or before May 13, 2010.
Annual Report
We make available free of charge through our websiteWeb site atwww.cohenandsteers.com under the headings “Corporate Info/SEC Filings,” our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC.Further, we will provide, without charge to each shareholder upon written request, a copy of our Annual Reports on Form 10-K (including our consolidated financial statements, schedules and list of exhibits), Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports. Requests for copies should be addressed to Corporate Secretary, Cohen & Steers, Inc., 280 Park Avenue, New York, New York 10017. Requests may also be directed to (212) 832-3232 or via e-mail tosrappa@cohenandsteers.com.Copies may also be accessed electronically by means of the SEC’s home page on the Internet atwww.sec.gov. Neither theour Annual Report on Form 10-K for the year ended December 31, 20072009 nor the 20072009 Annual Report to Shareholders shall constitute a part of the proxy solicitation materials.
PRINCIPAL SHAREHOLDERS
As of March 18, 2008,12, 2010, our co-chairmen and co-chief executive officers, Martin Cohen and Robert H. Steers, each directly and indirectly owned approximately 28% of our outstanding common stock. As long as Mr. Cohen and Mr. Steers together continue to own a majority of the voting power of our common stock, together they will be able to elect our entire Board of Directors and generally to determine the outcome of all corporate actions requiring shareholder approval.
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ITEM 1:
ELECTION OF DIRECTORS
Information Concerning the Nominees and Directors
Our amended and restated certificate of incorporation provides that the Board of Directors will consist of that number of directors determined from time to time by the Board of Directors. Acting upon the recommendation of its Nominating and Corporate Governance Committee, the Board of Directors has fixed the number of directors at six and has nominated the six persons identified herein for election as directors, to hold office until the next annual meeting of shareholders and the election and qualification of their successors. The Board of Directors recommends a vote “FOR” each of the six persons identified herein for election as directors.
The proxies solicited hereby, unless directed to the contrary therein, will be voted “FOR” all of the six nominees named in this Proxy Statement. All such nominees are currently directors of our company. All nominees have consented to being named in this Proxy Statement and to serve if elected. The Board of Directors has no reason to believe that any nominee will be unavailable or unable to serve as a director, but if for any reason any nominee should not be available or able to serve, the shares represented by all valid proxies will be voted by the person or persons acting under said proxy in accordance with the recommendation of the Board of Directors.
Information Concerning the Nominees and Directors
4The Board of Directors seeks to ensure that it is composed of members whose particular experience, qualifications, attributes and skills, when taken together, allow the Board of Directors to satisfy its oversight responsibilities effectively. As set forth below under “Corporate Governance at Cohen & Steers—Consideration of Director Candidates,” in identifying candidates for Director, the Board of Directors and its Nominating and Corporate Governance Committee takes into account (1) the comments and recommendations of board members regarding the qualifications and effectiveness of the existing Board of Directors or additional qualifications that may be required when selecting new board members, (2) the requisite expertise and sufficiently diverse backgrounds of the Board of Directors’ overall membership composition, (3) the independence of outside members of the Board of Directors and other possible conflicts of interest of existing and potential members of the Board of Directors and (4) all other factors it considers appropriate. Although the company has no policy regarding diversity, the Board of Directors believes that diversity is an important component of a board of directors, which includes such factors as background, skills, experience, expertise, gender, race and culture. Further, the Board of Directors does not discriminate on the basis of race, color, national origin, gender, religion, disability, or sexual preference in selecting director candidates.
When considering whether directors and nominees have the experience, qualifications, attributes and skills, taken as a whole, to enable the Board of Directors to satisfy its oversight responsibilities effectively in light of the company’s business and structure, the Nominating and Corporate Governance Committee and the Board of Directors focused primarily on the information discussed in each of the Directors’ individual biographies set forth below. In particular, with regard to Mr. Bruce, the Board of Directors considered his strong background in the equity capital markets sector in the origination and execution of a broad spectrum of initial public offerings, including offerings of closed-end funds. With regard to Mr. Rhein, the Board of Directors considered his significant experience, expertise and background with regard to accounting matters, which includes specialization in the real estate sector, as well as his service on the board of directors of a publicly traded real estate investment trust. With regard to Mr. Simon, the Board of Directors considered the broad perspective brought by Mr. Simon’s experience directing the research and analysis of companies in many diverse industries. With regard to Mr. Villani, the Board of Directors considered his strong background in the investment management industry, believing in particular that Mr. Villani’s experience as the chief executive officer of a large global investment management firm is valuable to the company. The Board of Directors also considered the knowledge and many years of experience with the company represented by Mr. Cohen and Mr. Steers, including their founding of the company.
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Set forth below are the names of the nominees for election as our directors; their ages and principal occupations as of March 18, 2008;12, 2010; the years the nominees first became directors of our company; and their biographical information.
Name | Age | Position | ||
Martin Cohen | Co-chairman, co-chief executive officer and director | |||
Robert H. Steers | Co-chairman, co-chief executive officer and director | |||
Richard E. Bruce | Director | |||
Peter L. Rhein | Director | |||
Richard P. Simon | Director | |||
Edmond D. Villani | Director |
Martin Cohen, a director since August 2004, is the company’s co-founder, co-chairman and co-chief executive officer. Prior to co-founding the firm in 1986, Mr. Cohen was a senior vice president and portfolio manager at National Securities and Research Corporation from 1984 to 1986, where in 1985 he and Mr. Steers organized and managed the nation’s first real estate securities mutual fund. From 1976 to 1981, Mr. Cohen was a vice president at Citibank, where in 1980 he organized and managed the Citibank Real Estate Stock Fund. Mr. Cohen has a BS degree from the City College of New York and an MBA degree from New York University. He has served as a member of the Board of Governors of the National Association of Real Estate Investment Trusts. In 2001, he was the recipient of the National Association of Real Estate Investment Trusts Industry Achievement Award. Mr. Cohen serves as co-chairman of each of the Cohen & Steers open-end and closed-end mutual funds.
Robert H. Steers, a director since August 2004, is the company’s co-founder, co-chairman and co-chief executive officer. Prior to co-founding the firm in 1986, Mr. Steers was a senior vice president and the chief investment officer of National Securities and Research Corporation from 1982 to 1986, where in 1985 he and Mr. Cohen organized and managed the nation’s first real estate securities mutual fund. From 1977 to 1982, Mr. Steers was a vice president at Citibank, serving as an analyst and portfolio manager of Citibank’s Emerging Growth Stock Fund. Mr. Steers has a BS degree from Georgetown University and an MBA degree from George Washington University. Mr. Steers serves as co-chairman of each of the Cohen & Steers open-end and closed-end mutual funds.
Richard E. Bruce, a director since August 2004, retired from Merrill Lynch in 2004. From 1992 until his retirement, Mr. Bruce worked in the Equity Capital Markets department at Merrill Lynch, most recently as a director. Mr. Bruce serves on the board of directors of Southampton Hospital. Mr. Bruce has a BA degree in economics from Union College and an MBA degree from the Wharton School of the University of Pennsylvania.
Peter L. Rhein, a director since August 2004, has been a general partner of Sarlot and Rhein, a real estate investment partnership, since 1967. From 1970 until 1984, he was employed in various capacities by Wells Fargo Realty Advisors and its affiliates. From 1976 until 1984, he was vice president, treasurer and chief financial officer of Wells Fargo Mortgage and Equity Trust, a real estate investment trust. Mr. Rhein is a Certified Public Accountant. Mr. Rhein serves on the board of directors and as chairmanis a member of the auditfinance and risk management committee and compensation committee for HCP, Inc. In addition, he is a member of the board of visitors of the School of Politics and Economics at Claremont Graduate University and on the board of governors of the Fulfillment Fund, a not-for-profit organization which supports education for disadvantaged students. Mr. Rhein has a BS degree in accounting from Claremont McKenna College.
Richard P. Simon, a director since August 2004, retired from Goldman Sachs & Co. in 2004. From 1978 until his retirement, he was employed in various capacities by Goldman Sachs, most recently as a managing director. Between 1990 and 2002, Mr. Simon coordinated the Goldman Sachs global media, publishing, advertising, broadcasting, and cable research and served as a managing director from 1996 until his retirement. Prior to retiring from Goldman Sachs, Mr. Simon also mentored analysts and was deputy director of research. He is currently a member of the board of directors of Visions, a not-for-profit organization for the visually impaired and blind. Mr. Simon has a BA degree in accounting from the University of Toledo and an MBA degree from New York University.
Edmond D. Villani, a director since August 2004, served as Vice Chairman of Deutsche Asset Management, North America until December 31, 2005. Between 1997 and 2002 he was the chief executive
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officer of Scudder, Stevens & Clark, Inc. and its successor entities. He is the former chairman of the board of Georgetown
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University and currently serves on the board of the Colonial Williamsburg Foundation and the investment committee of the Rockefeller Brothers Fund.Foundation. In addition, he chairs the advisory board of the Penn Institute for Economic Research at the University of Pennsylvania. Mr. Villani has a BA degree in Mathematics from Georgetown University and a Ph.D. degree in economics from the University of Pennsylvania.
Other Executive Officers
In addition to Mr. Cohen and Mr. Steers, the following persons currently serve as our executive officers:
Name | Age | Position | ||
Joseph M. Harvey | President | |||
Adam M. Derechin | Executive vice president and chief operating officer | |||
Matthew S. Stadler | Executive vice president and chief financial officer | |||
Francis C. Poli | Executive vice president and general counsel |
Joseph M. Harvey, president, is responsible for the firm’s investment department. Prior to joining us in 1992, he was a vice president with Robert A. Stanger Co., where for five years he was an analyst specializing in real estate and related securities for the firm’s research and consulting activities. Mr. Harvey has a BSE degree from Princeton University. Mr. Harvey serves as a vice president of each of the Cohen & Steers open-end and closed-end mutual funds.
Adam M. Derechin, CFA, executive vice president and chief operating officer, is responsible for the firm’s investment administration and systems departments. Prior to joining us in 1993, he worked for the Bank of New England, where he supervised mutual fund accountants. Mr. Derechin has a BA degree from Brandeis University and an MBA degree from the University of Maryland. Mr. Derechin serves as chief executive officer and president of each of the Cohen & Steers open-end and closed-end mutual funds.
Matthew S. Stadler, CPA, executive vice president and chief financial officer, oversees the firm’s accounting and finance department. Prior to joining us in May 2005, he served as a managing director at Lehman Brothers Inc. and chief financial officer of Neuberger Berman Inc., a Lehman Brothers company. He joined Neuberger Berman in 1999 and served as chief financial officer while the firm was an independent public company. Mr. Stadler also served as a senior vice president and chief financial officer of National Discount Brokers Group from May 1999 until October 1999 and a senior vice president and chief financial officer of Santander Investment Securities Inc. from August 1994 until April 1999.
Francis C. Poli, executive vice president and general counsel, oversees the firm’s legal and compliance department. Prior to joining us in 2007, Mr. Poli spent nine years with Allianz Global Investors, most recently aswas managing director, chief legal officer and director of U.S. compliance.compliance for Allianz Global Investors. Prior to that, Mr. Poli served as vice president and assistant general counsel at J.P. Morgan & Co. and as an associate in the Securities Practice Group at Kelley Drye & Warren. Mr. Poli has a BA degree from Boston College and a JD from Pace University School of Law.
There are no family relationships between or among any of the members of the Board of Directors and the executive officers.
CORPORATE GOVERNANCE AT COHEN & STEERS
We regularly monitor regulatory developments and review our policies, processes and procedures in the area of corporate governance to respond to such developments. As part of those efforts, we review federal laws affecting corporate governance, such as the Sarbanes-Oxley Act of 2002, as well as rules adopted by the SEC and the New York Stock Exchange, Inc. (the “NYSE”).
Corporate Governance Guidelines
The Board of Directors has adopted Corporate Governance Guidelines that address the following key corporate governance subjects, among others: director qualification standards; director responsibilities; director
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access to management and, as necessary and appropriate, independent advisors; director compensation; director orientation and continuing education; management succession; and an annual performance evaluation of the
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Board of Directors. Our Corporate Governance Guidelines is available at our corporate websiteWeb site atwww.cohenandsteers.com under the headings “Corporate Info/Corporate Governance.” Further, we will provide a copy of this document without charge to each shareholder upon written request. Requests for copies should be addressed to the Corporate Secretary, Cohen & Steers, Inc., 280 Park Avenue, New York, New York 10017.
Code of Business Conduct and Ethics
The Board of Directors has adopted a Code of Business Conduct and Ethics for our directors, officers, and employees which addresses these important topics, among others: conflicts of interest; corporate opportunities; confidentiality of information; fair dealing; protection and proper use of our assets; compliance with laws, rules and regulations (including insider trading laws); and encouraging the reporting of any illegal or unethical behavior. The Board of Directors has also adopted a Code of Ethics for our Senior Financial Officers. The purpose of the Code of Ethics for Senior Financial Officers is to promote honest and ethical conduct and compliance with the law, particularly as related to the maintenance of our financial books and records and the preparation of our financial statements. Our Code of Business Conduct and Ethics and Code of Ethics for our Senior Financial Officers are available at our corporate websiteWeb site atwww.cohenandsteers.com under the headings “Corporate Info/Corporate Governance.” Further, weThe Company will provide a copypromptly disclose within four business days any substantive changes in or waivers of these documents without chargethe Code of Business Conduct and Ethics or Code of Ethics for Senior Financial Officers granted to each shareholder upon written request. Requests for copies should be addressed toour executive officers, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, and our directors by posting such information on our website at www.cohenandsteers.com under the headings “Corporate Info/Corporate Secretary, Cohen & Steers, Inc., 280 Park Avenue, New York, New York 10017.Governance.”
Shareholders are encouraged to visit the corporate governanceCorporate Governance section of the “Corporate Info” page of our websiteWeb site atwww.cohenandsteers.com for additional information about our Board of Directors and its committees, and corporate governance at our company.
Director Independence
Background. Under the NYSE’s corporate governance rules, no director qualifies as independent unless our Board of Directors affirmatively determines that the director has no “material relationship” with us, either directly or as a partner, shareholder, or officer of an organization that has a relationship with us. In addition, directors who have relationships covered by one of five bright-line independence tests established by the NYSE, as discussed below, may not be found to be independent.
The NYSE’s director independence requirements are designed to increase the quality of board oversight at listed companies and to lessen the possibility of damaging conflicts of interests. The NYSE’s corporate governance rules do not define every relationship that will be considered material for purposes of determining a director’s independence from our management. Material relationships can include commercial, industrial, banking, consulting, legal, accounting, charitable, and familial relationships, among others. As the concern is a director’s independence from our management, however, the NYSE does not view the ownership of even a significant amount of our stock, by itself, as a bar to an independence finding.
NYSE’s bright-line independence tests.The NYSE has adopted five bright-line independence tests for directors. Each of these tests describes a specific set of circumstances that will cause a director to be not independent from our management. For example, a director who is an employee of ours, or whose immediate family member is an executive officer of our company, is notcannot be considered independent until three years after the end of the employment relationship. The other bright-line independence tests address circumstances involving: the receipt of more than $100,000$120,000 per year in direct compensation from us, except for certain permitted payments such as director fees; employment by or affiliations with our current or former internal or external auditors; interlocking directorates; and certain business relationships involving companies that make payments to, or receive payments from, us above specified annual thresholds. For more information about the NYSE’s bright-line director independence tests, including the NYSE commentary explaining the application of the tests, please go to the NYSE Web site atwww.nyse.com.
Categorical standards of director independence adopted by the Board of Directors. The NYSE’s corporate governance rules permit a listed company’s board of directors to adopt categorical standards of director
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independence. Categorical standards are intended to assist a board in making determinations of independence. The NYSE recognizes that the adoption and disclosure of categorical standards provide investors with an adequate means of assessing the quality of a board’s independence and its independence determinations while avoiding the excessive disclosure of immaterial relationships.
The Board of Directors, acting upon the recommendation of its Nominating and Corporate Governance Committee, has adopted categorical standards to assist it in determining whether or not certain relationships between the members of the Board of Directors and us or our affiliates and subsidiaries (either directly or as partner, shareholder or officer of an organization that has a relationship with us) are material relationships for purposes of the listing standards of the NYSE. The Board of Directors has determined that the following relationships should not be considered material relationships that would impair a director’s independence: (1) relationships arising in the ordinary course of business, such as asset management, acting as trustee, or other financial service relationships, so long as the services are being provided in the ordinary course of business and on substantially the same terms and conditions, including price, as would be available to similarly situated customers; (2) relationships where a director is an executive officer or an employee, or whose immediate family member is an executive officer, of another company that makes payments to, or receives payment from, us for property or services in an amount which, in any single fiscal year, are less than the greater of $1,000,000 or two percent of the consolidated gross revenues of such other company; (3) relationships where a director beneficially owns, or is an employee of another company that beneficially owns, less than 10% of our common equity; (4) relationships where a director is an executive officer or an employee of another company to which we are indebted, and the total amount of the indebtedness is less than one percent of the total consolidated assets of the company for which he or she serves as an executive officer or an employee; and (5) relationships where a director serves as an officer, director or trustee of a charitable organization, and our discretionary charitable contributions to the organization are less than the greater of $1,000,000 or two percent of that organization’s consolidated gross revenues.
Independence determinations made by the Board of Directors. At its meeting on February 27, 2008,March 11, 2010, the Board of Directors made a determination as to the independence of each director, in accordance with the applicable NYSE corporate governance rules. The Board of Directors determined at this meeting that each of Messrs. Bruce, Rhein, Simon and Villani has no material relationship with us (either directly or as a partner, shareholder or officer of an organization that has a relationship with us) and is “independent” as defined in the
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NYSE listing standards and the applicable SEC rules. At this meeting, the Board of Directors considered, but did not believe to be material, the fact that we, through our advisory clients, owned as of December 31, 20072009 approximately 2.7%4% of the outstanding common stock of HCP, Inc., a company for which Mr. Rhein serves on the board of directors and is the chairman of the audit committee.directors. Further, the Board of Directors considered, but did not believe to be material, the fact that our investment banking group from time to time performed certain merger and acquisition and capital raising services for HCP.of the members of the board of directors were investors in the mutual funds we manage. Finally, the Board of Directors determined that each of Mr. Cohen and Mr. Steers was not independent. No director participated in the final determination of his own independence.
Consideration of Director Candidates
The policy of the Nominating and Corporate Governance Committee is to consider properly submitted shareholder recommendations for candidates for membership on the Board of Directors as described below under “Identifying and Evaluating Candidates for Directors.” In evaluating such recommendations, the Nominating and Corporate Governance Committee seeks to achieve a balance of knowledge, experience and capability on the Board of Directors and to address the membership criteria set forth below under “Director Qualifications.” Any shareholder recommendations for consideration by the Nominating and Corporate Governance Committee should include the nominee’s name and qualifications for Board of Directors membership. The recommending shareholder should also submit evidence of the shareholder’s ownership of our shares, including the number of shares owned and the length of time of ownership. The recommendation should be addressed to the Corporate Secretary, Cohen & Steers, Inc., 280 Park Avenue, New York, New York 10017.
Director qualifications. Our Corporate Governance Guidelines contain Board of Directors membership criteria that apply to Nominating and Corporate Governance Committee-recommended candidates for a position on our Board of Directors. The minimum qualifications for serving as a member of the Board of Directors are
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that a person demonstrate by significant accomplishment in his or her field,strength of character, mature judgment, familiarity with our business and industry, independence of thought and an ability to make a meaningful contributionwork collegially. The Board of Directors also considers the skill sets and experiences of the existing directors, and actively seeks to add directors who would bring additional relevant skill sets and experiences to the Board of Directors’ oversightDirectors or would replace skill sets and experience lost through a director’s retirement. Although the company has no policy regarding diversity, the Board of our businessDirectors believes that diversity is an important component of a board of directors, including such factors as background, skills, experience, gender, race and affairs and that a person have an impeccable record and reputation for honest and ethical conduct in both his or her professional and personal activities. In addition, nominees for director are selectedculture. Further, the Board of Directors does not discriminate on the basis of among other things, experience, knowledge, skills, expertise, diversity, ability to make independent analytical inquiries, understanding of our business environment and willingness to devote adequate time and effort to the responsibilities of the Board of Directors.race, color, national origin, gender, religion, disability, or sexual preference in selecting director candidates. Each director must represent the interests of all of our shareholders.
Identifying and evaluating candidates for director. The Nominating and Corporate Governance Committee identifies potential nominees by asking current directors and executive officers to notify the Nominating and Corporate Governance Committee if they become aware of persons meeting the criteria described above. The Nominating and Corporate Governance Committee also may engage firms that specialize in identifying director candidates. As described above, the Nominating and Corporate Governance Committee will also consider candidates recommended by shareholders.
Once a person has been identified by the Nominating and Corporate Governance Committee as a potential candidate, the Nominating and Corporate Governance Committee may collect and review publicly available information regarding the person to assess whether the person should be considered further. If the Nominating and Corporate Governance Committee determines that the candidate warrants further consideration, the Chairman or a person designated by the Nominating and Corporate Governance Committee contacts the person. Generally, if the person expresses a willingness to be considered and to serve on the Board of Directors, the Nominating and Corporate Governance Committee requests information from the candidate and reviews the person’s accomplishments and qualifications. The Nominating and Corporate Governance Committee’s evaluation process does not vary based on whether or not a candidate is recommended by a shareholder, although the Nominating and Corporate Governance Committee may take into consideration the number of shares held by the recommending shareholder and the length of time that such shares have been held.
There are no nominees for election to our Board of Directors this year who have not previously served as one of our directors.
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Executive Sessions
Executive sessions of non-management directors are held at leastbefore each regularly scheduled board meeting. In 2009, the non-management directors held four times a year.executive sessions. “Non-management directors” include all directors who are not our officers.officers, and all non-management directors have been determined by the Board of Directors to be independent. Currently, Mr. Cohen and Mr. Steers are the only officers serving on our Board of Directors. Each session is chaired by one of the non-management members of the Board of Directors on a rotating basis. Any non-management director can request that an additional executive session be scheduled.
Board of Directors Oversight of Risk Management
The Board of Directors’ risk management role within the company is one of informed oversight. Through the processes and procedures implemented by the company, the company’s management brings to the attention of the Board of Directors the key risks that may affect the company and how management addresses these risks. Likewise, the Board of Directors works with executive management to set the “tone at the top” such that prudent mitigation of risk is incorporated in business decision-making at the company. The Board of Directors also helps management shape the company’s overall risk philosophy and risk tolerance, staying apprised of the most significant risks and assessing the appropriateness of management’s response to risk exposures.
The Audit Committee plays a key role in the oversight of the company’s financial risk management function. In that regard, the company’s internal auditor and management meet with the Audit Committee periodically to discuss the financial risks facing the company, highlighting any new risks that may have arisen since they last met. The Compensation Committee is responsible for overseeing the management of risks relating to the company’s executive compensation plans and programs. The Nominating and Corporate Governance Committee manages risks associated with independence and compensation of the Board of Directors, as well as executive succession planning. While each committee is responsible for evaluating and providing oversight of certain risks, the entire Board of Directors is regularly informed of the company’s overall risk structure through active participation in such committee meetings and committee reports to the full Board of Directors.
The Company undertakes at least annually together with its internal auditor a risk assessment to identify and evaluate the company’s key risks. The results of such assessment are reported to the Audit Committee and the Board of Directors. Whenever the company encounters any new risks, such as when the company enters a new or related line of business or develops a new product or service, such initiative is reviewed with the Board of Directors and any unique risks associated with such service or product are reviewed with the Board of Directors prior to its implementation.
The Company has established a global risk management committee (which is composed of senior officers from all involved departments of the company) as well as other operating committees which regularly assess and evaluate risks related to the company’s business and develop plans to manage these risks effectively. Any significant findings or modifications to the risk management profile of the company are reported to the Board of Directors.
The Company operates in a highly regulated industry. With respect to the U.S. regulatory oversight of the company, our organization is subject to several regulatory bodies including the SEC, the Financial Industry Regulatory Authority and the New York Stock Exchange. Internationally, through our subsidiaries, we are regulated by the Hong Kong Securities and Futures Commission, the United Kingdom Financial Services Authority and the Belgian Banking, Finance and Insurance Commission. Management has developed legal compliance programs that govern its business and employees both in the United States and internationally that are designed to detect and prevent any wrongdoing under relevant rules and regulations and address the company’s risk profile. These legal compliance programs are incorporated into the company’s training programs for all employees, which are conducted at least annually. A strong “tone at the top” is set by the Board of Directors and executive management, which is communicated by executive management to all employees, that non-compliance will not be tolerated. At least quarterly (and on a more regular basis as necessary), the General Counsel and Associate General Counsel review with the Audit Committee all regulatory matters, if any, with respect to the company’s business. In addition, the General Counsel and Associate General Counsel review with the Audit Committee all litigation matters, if any, as well as any related party transactions and material breaches or potential breaches of the company’s policies and procedures.
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In overseeing risk management, the Board of Directors is briefed on the company’s insurance program (including Directors and Officers coverage), the type and level of insurance coverage, material gaps, if any, in the insurance program, and how the company’s insurance program compares to others in the industry.
Board Leadership Structure
Martin Cohen and Robert Steers, co-founders of the company, are also the co-chairmen and co-chief executive officers of the company. The Board of Directors and its Nominating and Corporate Governance Committee believes that this leadership structure is appropriate for the company and in the best interests of its shareholders because Mr. Cohen and Mr. Steers are the directors most familiar with the company’s business and industry, and most capable of effectively identifying strategic priorities and leading the discussion and execution of strategy. The combined role of co-chairman and co-chief executive officer in Mr. Cohen and Mr. Steers promotes unified leadership and direction for the Board of Directors and executive management and it allows for a clear focus for the chain of command to execute the company’s strategic initiatives and business plan. That Mr. Cohen and Mr. Steers are two persons fulfilling the roles of chairman and chief executive officer was also considered by the Board of Directors and its Nominating and Corporate Governance Committee in determining not to separate the positions.
Four of the six members of the Board of Directors meet the independence requirements of the NYSE, the SEC and the Board of Directors’ standards for determining director independence. Mr. Cohen and Mr. Steers are the only members of our executive management who are also directors. The Board of Directors and its Nominating and Corporate Governance Committee do not believe that the chairman of the company’s Board of Directors must be independent in order to ensure that the Board of Directors provides independent and effective oversight of our business and affairs. In fact, the Board of Directors believes that such oversight is maintained at the company through the majority independent composition of the Board, the strong leadership and contributions of our independent directors and committees, and our highly effective corporate governance structures and processes already in place.
The Board of Directors does not have a lead director, though each quarterly executive session of non-management directors is chaired by one of the independent members of the Board of Directors on a rotating basis. Given the size of the Board of Directors, the fact that all independent directors serve on each of the committees of the Board of Directors, and the open lines of communication between the four independent directors and Mr. Cohen, Mr. Steers and the other members of senior management, the Board of Directors and its Nominating and Corporate Governance Committee do not believe that there is currently a need for a lead director.
Communications with the Board
The Board of Directors has established a process to receive communications from shareholders and other interested parties. Shareholders and otherAll interested parties may contact any member (or all members) of the Board of Directors (including without limitation the director that presides over the executive sessions of non-management directors, or the non-management directors as a group), any Board of Directors committee or any chair of any such committee by mail or electronically. To communicate with the Board of Directors, any individual director or any group or committee of directors, correspondence should be addressed to the Board of Directors or any such individual directors or group or committee of directors by either name or title. All such correspondence should be sent c/o General Counsel, Cohen & Steers, Inc., 280 Park Avenue, New York, New York 10017. To communicate with any of our directors electronically, shareholders should go to our corporate websiteWeb site atwww.cohenandsteers.com. Under the headings “Corporate Info/Board of Directors/Contact the Board of Directors,” shareholders may find the e-mail addressboard_communications@cohenandsteers.com, which may be used for writing an electronic message to the Board of Directors, any individual director, or any group or committee of directors. Please follow the instructions on our websiteWeb site in order to send your message.
All communications received as set forth in the preceding paragraph will be opened by our Associate General Counsel for the sole purpose of determining whether the contents represent a message to our directors.
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Any contents that are not in the nature of advertising, promotions of a product or service, or patently offensive material will be forwarded promptly to the addressee. In the case of communications to the Board of Directors or any group or committee of directors, sufficient copies of the contents will be made for each director who is a
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member of the group or committee to which the envelope or e-mail is addressed. Concerns relating to accounting, internal controls or auditing matters are brought to the attention of the Chairman of the Audit Committee and handled in accordance with procedures established by the Audit Committee with respect to such matters.
INFORMATION ABOUT THE BOARD AND ITS COMMITTEES
The Board of Directors has three standing committees: an Audit Committee; a Compensation Committee; and a Nominating and Corporate Governance Committee. The current charters for each of the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee are available on our corporate websiteWeb site atwww.cohenandsteers.com under the headings “Corporate Info/Corporate Governance.” Further, we will provide a copy of these charters without charge to each shareholder upon written request. Requests for copies should be addressed to the Corporate Secretary, Cohen & Steers, Inc., 280 Park Avenue, New York, New York 10017.
The Audit Committee
The Board of Directors has a standing Audit Committee composed of Messrs. Rhein (Chair), Bruce, Simon and Villani that satisfies the requirements of SEC Rule 10A-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Rule 10A-3 establishes listing standards relating to audit committees in the following areas: the independence of audit committee members; the audit committee’s responsibility to select and oversee our independent registered public accounting firm; procedures for handling complaints regarding our accounting practices; the authority of the audit committee to engage advisors; and funding for the independent registered public accounting firm and any outside advisors engaged by the audit committee. As previously stated, the Board of Directors has determined that each of Messrs. Bruce, Rhein, Simon and Villani has no material relationship with us (either directly or as a partner, shareholder or officer of an organization that has a relationship with us) and is “independent” as defined in the NYSE listing standards and the applicable SEC rules. Furthermore, the Board of Directors has determined that Mr. Rhein qualifies as an “audit committee financial expert” as defined in the SEC rules and the Board of Directors has determined that each of Messrs. Bruce, Rhein, Simon and Villani has accounting and related financial management expertise within the meaning of the listing standards of the NYSE.
The Audit Committee’s primary purposes are to assist Board of Director oversight of the following: the integrity of our financial statements; the independent registered public accounting firm’s qualifications and independence; the performance of our internal audit function and independent registered public accounting firm; and the compliance by us with legal and regulatory requirements. The Audit Committee also prepares the audit committee report as required by the SEC’s rules for inclusion in our annual proxy statement.
The Audit Committee regularly holds separate sessions with management, internal auditors, and the independent registered public accounting firm. The Audit Committee’s procedures for the pre-approval of the audit and permitted non-audit services are described in “Item 4:2: Ratification of the Appointment of Independent Registered Public Accounting Firm—Audit Committee Pre-Approval Policy.”
The Compensation Committee
The Compensation Committee is responsible for overseeing our stock award and incentive plans and establishing the compensation for certain of our executive officers. The Compensation Committee is presently composed of Messrs. Villani (Chair), Bruce, Rhein and Simon. As previously stated, the Board of Directors has determined that each of Messrs. Bruce, Rhein, Simon and Villani has no material relationship with us (either directly or as a partner, shareholder or officer of an organization that has a relationship with us) and is “independent” as defined in the NYSE listing standards and is a “non-employee director” as defined in the applicable SEC rules.
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The Compensation Committee has delegated to MartinMr. Cohen and Robert H.Mr. Steers the authority (with certain limitations) to grant awards under the Amended and Restated Stock Incentive Plan to participants in the plan who are not directors or senior officers of the company as defined by Section 16 of the Securities Exchange Act of 1934. For additional information on the Compensation Committee’s activities, its use of outside advisors, its approach to administering the company’s executive compensation program and its consideration and determination of executive compensation, see “Compensation of Executive Officers—Compensation Discussion and Analysis.”
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Compensation Committee Interlocks and Insider Participation
None of the Compensation Committee’s members is or has been an officer or employee of the company. During fiscal 2009, none of the company’s executive officers served on the board of directors, the compensation committee or any similar committee of another entity of which an executive officer served on our Board of Directors or Compensation Committee.
The Nominating and Corporate Governance Committee
The Nominating and Corporate Governance Committee is responsible for the following: assisting the Board of Directors by identifying individuals qualified to become Board of Directors members, and to recommend to the Board of Directors the director nominees for the next annual meeting of shareholders; recommending to the Board of Directors the Corporate Governance Guidelines applicable to us; leading the Board of Directors in its annual reviewevaluation of the Board of Directors and management’s performance; and recommending to the Board of Directors director nominees for each committee.
The Nominating and Corporate Governance Committee is presently composed of Messrs. Simon (Chair), Bruce, Rhein and Villani. As previously stated, the Board of Directors has determined that each of Messrs. Bruce, Rhein, Simon and Villani has no material relationship with us (either directly or as a partner, shareholder or officer of an organization that has a relationship with us) and is “independent” as defined in the NYSE listing standards and the applicable SEC rules.standards.
Meetings of the Board’s Committees
The Board of Directors met four times during 2007.2009. During 2007,2009, the Board of Directors’ committees held the following number of meetings: Audit Committee—eight meetings; Compensation Committee—fivethree meetings; Nominating and Corporate Governance Committee—two meetings. In 2007,2009, each director attended allat least 75% of the meetings of the Board of Directors and each committee of the Board of Directors on which such director served.
The Board of Directors believes that it is important for shareholders to have the opportunity to meet and talk to the independent members of the Board of Directors. Therefore, the Board of Directors generally schedules a board meeting in conjunction with our annual shareholders’ meeting and expects directors, absent valid reasons, to attend the shareholders’ meeting. All of the members of the Board of Directors attended the 20072009 annual meeting of shareholders.
Compensation of Directors
Our policy is not to pay additional compensation to directors who are also our employees. The Nominating and Corporate Governance Committee reviews and recommends to our Board of Directors the compensation of our non-employee directors. As part of this review, the Nominating and Corporate Governance Committee consults with McLagan, a leading compensation consulting and research firm, to determine the reasonableness and adequacy of our non-employee director compensation. In August 2007, the Nominating and Corporate Governance Committee recommended, and our Board of Directors approved, changes to our non-employee director compensation.
Each outside director receives an annual retainer of $120,000, $45,000 of which is payable quarterly in cash and $75,000 of which is payable quarterly in restricted stock units. The restricted stock units are granted under our Amended and Restated Stock Incentive Plan and are 100% vested on the date of grant. The shares of common stock underlying the restricted stock units granted to a director will be delivered to the director on the third anniversary of the date of grant. Dividends on these restricted stock units are paid in cash as and when dividends are paid by us on our common stock.
The chair of the Audit Committee receives an additional annual cash retainer of $15,000, the chair of the Compensation Committee receives an additional annual cash retainer of $7,500 and the chair of the Nominating and Corporate Governance Committee receives an additional annual cash retainer of $5,000. Each member of the Audit Committee (including the chair) receives an additional annual cash retainer of $15,000, each member of the Compensation Committee (including the chair) receives an additional annual cash retainer of $7,500, and each member of the Nominating and Corporate Governance Committee (including the chair) receives an additional annual cash retainer of $5,000.
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Outside directors are further reimbursed for reasonable travel and related expenses associated with attendance at board or committee meetings as well as reasonable expenses for continuing education programs related to their role as a member of the board.
Outside directors receive no compensation from us other than compensation as one of our directors.
The following chart sets forth the compensation paid by us to non-employee directors in 2007.2008.
20072009 Director Compensation
Name | Fees Earned or Paid in Cash ($) | Stock Awards(1) ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation(2) ($) | Total ($) | Fees Earned or Paid in Cash ($) | Stock Awards(1) ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation(2) ($) | Total ($) | ||||||||||||||
Richard E. Bruce | 63,823 | 58,427 | — | — | — | 3,663 | 125,913 | 72,519 | 74,987 | — | — | — | 1,662 | 149,168 | ||||||||||||||
Peter L. Rhein | 77,573 | 58,427 | — | — | — | 3,663 | 139,663 | 87,519 | 74,987 | — | — | — | 1,662 | 164,168 | ||||||||||||||
Richard P. Simon | 68,823 | 58,427 | — | — | — | 3,663 | 130,913 | 77,519 | 74,987 | — | — | — | 1,662 | 154,168 | ||||||||||||||
Edmond D. Villani | 71,323 | 58,427 | — | — | — | 3,663 | 133,413 | 80,019 | 74,987 | — | — | — | 1,662 | 156,668 |
(1) | The amounts in this column reflect the |
In |
(2) | Represents the dividends paid on undelivered restricted stock units granted to the directors. |
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REPORT OF THE AUDIT COMMITTEE
In accordance with and to the extent permitted by the rules of the SEC, the information contained in the following Report of the Audit Committee shall not be incorporated by reference into any of our future filings made under the Exchange Act, or under the Securities Act of 1933, as amended (the “Securities Act”), and shall not be deemed to be soliciting material or to be filed under the Exchange Act or the Securities Act.
Report of the Audit Committee
The Board of Directors has appointed an Audit Committee composed of four directors, each of whom is independent as defined in the NYSE listing standards. The Board of Directors has determined that Mr. Rhein is an “audit committee financial expert,” as that term is defined in the SEC rules.
The Board of Directors has adopted a written charter for the Audit Committee. A copy of that charter is available on our corporate websiteWeb site atwww.cohenandsteers.com under the headings “Corporate Info/Corporate Governance.” The Audit Committee’s job is one of oversight as set forth in its charter. It is not the duty of the Audit Committee to prepare our financial statements, to plan or conduct audits, or to determine that our financial statements are complete and accurate and prepared in accordance with accounting principles generally accepted in the United States of America. Management is responsible for preparing our financial statements and for maintaining internal control and disclosure controls and procedures. The independent registered public accounting firm is responsible for auditing the financial statements and expressing an opinion as to whether those audited financial statements fairly present our financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America.
The Audit Committee has reviewed and discussed our audited financial statements with management and with Deloitte & Touche LLP, our independent registered public accounting firm for 2007.2009.
The Audit Committee has discussed with Deloitte & Touche LLP the matters required by the Statement on Auditing Standards No. 114,61, as amended (The Auditor’s Communication with those Charged with GovernanceAICPA, Professional Standards, Vol. 1, AU Section 380.) as adopted by the Public Company Accounting Oversight Board in Rule 3200T.
The Audit Committee has received from Deloitte & Touche LLP the written statements required by Independence Standardsthe applicable requirements of the Public Company Accounting Oversight Board Standard No. 1,Independence Discussionsregarding the independent auditor’s communications with the Audit Committees,Committee concerning independence, and the Audit Committee has discussed Deloitte & Touche LLP’s independence with Deloitte & Touche LLP that firm’s independence. The Audit Committee has concluded that Deloitte & Touche LLP’s provision of audit and has considerednon-audit services to the compatibility of nonaudit servicescompany and its affiliates is compatible with the auditor’sDeloitte & Touche LLP’s independence.
Based on the review and discussions referred to above, the Audit Committee has recommended to the Board of Directors that the audited financial statements be included in our Annual Report on Form 10-K for the year ended December 31, 20072009 for filing with the SEC.
MEMBERS OF THE AUDIT COMMITTEE |
Peter L. Rhein (Chair) Richard E. Bruce Richard P. Simon Edmond D. Villani |
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REPORT OF THE COMPENSATION COMMITTEE
The following compensation committee report to shareholders shall not, in accordance with the rules of the SEC, be incorporated by reference into any of our future filings made under the Exchange Act or under the Securities Act, and shall not be deemed to be soliciting material or to be filed under the Exchange Act or the Securities Act.
Compensation Committee Report
The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with management and, based on such review and discussions, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement and in our Annual Report on Form 10-K for the year ended December 31, 2007.
2009.
MEMBERS OF THE COMPENSATION COMMITTEE |
Edmond D. Villani (Chair) Richard E. Bruce Peter L. Rhein Richard P. Simon |
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Exchange Act requires our directors, executive officers and persons who own more than ten percent of a registered class of our equity securities to file reports of holdings of, and transactions in, our shares with the SEC. To the best of our knowledge, based solely on copies of such reports and representations from these reporting persons, we believe that in 2007,2009, our directors, executive officers and ten percent holders met all applicable SEC filing requirements except that a Form 4 for Bernard Doucette, our chief accounting officer, reporting one transaction was inadvertently filed late due to an administrative error.requirements. Reports filed with the SEC detailing purchases and sales of our equity securities by such persons may be found on our corporate websiteWeb site atwww.cohenandsteers.com under “Corporate Info/SEC Filings.”
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OWNERSHIP OF COHEN & STEERS COMMON STOCK
The following table sets forth certain information with respect to the beneficial ownership of our common stock as of March 18, 200812, 2010 by: (1) each person who is known by us to own beneficially more than 5% of any class of outstanding shares of our common stock; (2) each of our directors; (3) each of the executive officers named in the Summary Compensation Table; and (4) all of our executive officers and directors as a group.
Except as otherwise noted, each individual exercises sole voting power or investment power over the shares of common stock shown. The number of shares of common stock shown in the following security ownership table as beneficially owned by each director and executive officer is determined under the rules of the SEC and the information is not necessarily indicative of beneficial ownership for any other purpose. For purposes of the following security ownership table, beneficial ownership includes any shares of common stock as to which the individual has sole or shared voting power or investment power and also any shares of common stock which the individual has the right to acquire within 60 days of March 18, 200812, 2010 through the exercise of any option, warrant or right or the delivery of shares of common stock underlying restricted stock units.
As of March 18, 2008,12, 2010, there were 41,482,50742,555,660 shares of our common stock outstanding. This amount does not include restricted stock units issued by us to our employees. See footnote 1 to the following stock ownership table.
Name(†) | Amount and Nature of Beneficial Ownership of Common Stock | Percent of Common Stock Outstanding | Amount of Restricted Stock Units Owned(1) | Amount and Nature of Beneficial Ownership of Common Stock | Percent of Common Stock Outstanding | Amount of Restricted Stock Units Owned(1) | |||||||||||
Baron Capital Group, Inc. | 3,088,860 | (2) | 7.5 | % | — | ||||||||||||
Clearbridge Advisors, LLC | 2,716,036 | (2) | 6.4 | % | — | ||||||||||||
Martin Cohen | 11,731,264 | (3)(4) | 28.3 | % | 184,155 | 11,835,640 | (3) | 27.8 | % | 147,209 | |||||||
Robert H. Steers | 11,727,577 | (5) | 28.3 | % | 184,155 | 11,831,953 | (4) | 27.8 | % | 147,209 | |||||||
Richard E. Bruce | 4,863 | * | 5,023 | 11,255 | * | 9,934 | |||||||||||
Peter L. Rhein | 10,000 | * | 5,023 | 22,524 | * | 9,934 | |||||||||||
Richard P. Simon | 2,863 | * | 5,023 | 6,266 | * | 9,934 | |||||||||||
Edmond D. Villani | 1,863 | * | 5,023 | 5,266 | * | 9,934 | |||||||||||
Joseph M. Harvey | 917,056 | (4) | 2.2 | % | 194,211 | 994,111 | (5) | 2.3 | % | 160,775 | |||||||
James S. Corl | 67,332 | * | — | ||||||||||||||
Adam M. Derechin | 305,744 | * | 83,087 | ||||||||||||||
Matthew S. Stadler | 34,135 | (6) | * | 129,921 | (6) | 89,619 | (6) | * | 97,738 | ||||||||
All directors and executive officers as a group (10 persons) | 24,703,266 | (3)(5) | 59.6 | % | 817,070 | 25,117,123 | (3)(4)(6) | 59.0 | % | 737,009 |
† | The address for each of the directors and executive officers is c/o Cohen & Steers, Inc., 280 Park Avenue, New York, New York 10017. Except as otherwise noted below and subject to applicable community property laws, each individual has sole voting and investment power with respect to the shares listed and may, from time to time, hold shares in accounts that have a margin feature. |
* | The number of shares of common stock held by such individual is less than 1% of the outstanding shares of such class of common stock. |
(1) | Represents non-voting restricted stock units granted under our Amended and Restated Stock Incentive Plan. Additional information on our Amended and Restated Stock Incentive Plan appears in the Compensation Discussion and Analysis and the Summary Compensation Table. |
(2) | This information |
(3) | Includes 1,340,701 shares of common stock held by The Martin Cohen 1998 Family |
(4) |
(5) | 986,446 of the shares held by Mr. Harvey are held in a margin brokerage account and have been pledged as loan collateral. |
(6) | Includes 23,888 shares of common stock that will be delivered on May |
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COMPENSATION OF EXECUTIVE OFFICERS
Compensation Discussion and Analysis
Introduction
Our compensation programs are designed to support our business goals and promote both short-term and long-term growth by attracting, motivating and retaining the management talent we need to maintain and strengthen our position in the asset management business. This section of the proxy statementProxy Statement explains how our compensation programs are designed and operate in practice with respect to our executive officers who are named in the compensation tables of our proxy statementsthis Proxy Statement (we refer to these individuals as the “named executive officers”). Our named executive officers are our co-chairmen and co-chief executive officers, Martin Cohen and Robert H. Steers, our chief financial officer, Matthew S. Stadler, our president, Joseph M. Harvey, and James S. Corl, executive vice president. Mr. Corl resigned from the company, effective March 4, 2008.our chief operating officer, Adam M. Derechin.
The Compensation Committee determines all components of our co-chief executive officers’ compensationcompensation. With respect to the other named executive officers, the Compensation Committee seeks recommendations from our co-chief executive officers and reviews and approves all components of our other named executive officers’ compensation. This includes making individual compensation decisions and reviewing and revising our compensation plans, programs, and guidelines as appropriate.
Compensation Philosophy
The following principles guide the design and oversight of our compensation programs:
Compensation should be related to performance. We believe that an employee’s compensation should be tied to how the individual employee performs and to how well both we as a company and the employee’s team perform. For a discussion of the performance criteria considered by the Compensation Committee in setting the named executive officers’ compensation, see “Named Executive Officer Compensation” below in this Proxy Statement.
Compensation levels are competitive. Our Compensation Committee annually reviews compensation survey data from independent sources to help ensure that our compensation programs are competitive.competitive (see “Compensation Consultant” and “Named Executive Officer Compensation” below in this Proxy Statement). The survey data used covers companies with whom we compete for leadership talent. The Compensation Committee does not aim to target compensation levels within a particular range related to levels provided by industry peers, butpeers. Instead, the Compensation Committee uses these comparisonssurvey data as one factor in determining the expectedinput within a broader decision-making process focused on ensuring that total value of annualcompensation levels (annual base salary, annual incentive performance bonus (including the mandatory and optional program deferrals described in “Elements of Executive Compensation—Annual Incentive Performance Bonus” below in this Proxy Statement) and other equity awards that fairly compensateawards) are competitive in the context of company performance, individual performance and each of the named executive officers when considered in combination.officer’s experience and job responsibilities.
Equity awards are a significant part of total compensation. Through our mandatory and optional deferral programs, as well as other equity grants discussed in “Elements of Executive Compensation—Other Equity Awards” below in this Proxy Statement, restricted stock units comprise a significant portion of the total compensation package for the named executive officers.officers (see “Elements of Executive Compensation—Annual Incentive Bonus” and “Named Executive Officer Compensation” below in this Proxy Statement for a discussion of the mix of compensation between cash and equity in our company for our named executive officers). These restricted stock units are generally granted at the time annual incentive performance bonuses are paid.
As a means to align the interests of the named executive officers with those of our other shareholders, we believe that the grant of restricted stock units encourages our employees to develop and lead our business and remain long-term employees. The restricted stock units generally vest over three to five years and are conditioned on continuous employment to serve as a retention incentive.
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Employees are provided with opportunities to own our common stock. We provide employees at all levelsof our employees with various ways to become owners of our company. Since our initial public offering in 2004, we have granted restricted stock unit grants to broad segments of employees. Further, our mandatory and optional deferral programs (in which we match a portion of the deferred amount in additional restricted stock units) have provided a means for employees to become shareholders of our company. Lastly, employees may purchase shares of our common stock at a 15% discount through our Employee Stock Purchase Plan.
Elements of Executive Compensation
The three primary components of our executive compensation programs are annual base salary, annual incentive performance bonuses (including mandatory and optional program deferrals) and other equity awards.
Annual base salary.Base salaries are set at levels that are competitive with similar positions at other comparable asset management companies (the group of comparable companies asset management companies is
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described in “Named Executive Officer Compensation” below in this Proxy Statement). Consistent with practices generally applied in the asset management industry, the Compensation Committee sets base salaries for named executive officers at levels that should constitute a relatively low percentage of their total compensation. This approach is consistent with the principle of linking compensation to performance since it results in most of an executive’s compensation being paid through more variable incentive awards.
While we review base salary surveys annually, base salaries for those at executive levels are generally adjusted less frequently. Adjustments, if any, at the senior leadership level are made to recognize significant expansion of an individual’s role, outstanding and sustained individual performance, or if competitive market data indicate a significant deviation from the market. It should be noted that no named executive officer has received a salary increase since 2008.
Annual incentive performance bonus.The Compensation Committee grants annual incentive performance bonuses to our named executive officers under our Amended and Restated Annual Incentive Plan. Annual incentive performance bonuses are designed to provide a linkage among employee performance, our annual performance and long-term increases in shareholder value. Because incentive compensation awards are generally tied to performance, they will usually constitute the largest portion of annual compensation paid to the named executive officers.
Early each year, the Compensation Committee, working with input from senior management, reviews the general performance criteria for our company and our named executive officers. Such criteria may include our company’s net income, revenues, assets under management and inflows and such other subjective matters as determined by the Compensation Committee. Further, the Compensation Committee determines the maximum annual incentive performance bonus for each of the named executive officers (for a further discussion of the performance criteria, see “Named Executive Officer Compensation” below)below in this Proxy Statement).
The maximum annual incentive performance bonuses are expressed as a percentage of our adjusted pre-tax profit. Adjusted pre-tax profit means our pre-incentive and pre-tax income, excluding extraordinary items or variances. The maximum annual incentive performance bonus amount that each named executive officer is eligible to receive is not an expectation of actual annual incentive performance bonus amounts that will be paid to the named executive officers, but a cap on the range of compensation that the named executive officer may be paid while maintaining the tax deductibility of the bonus as “performance-based” compensation for purposes of Section 162(m) of the Internal Revenue Code. The Compensation Committee typically approves annual incentive performance bonuses to the named executive officers that are less than the maximum percentages allocated to the named executive officers. The Compensation Committee believes that this bonus structure is in the best interests of shareholders because it enables the most prudent use of our assets by ensuring the deductibility of performance-based compensation while allowing the Compensation Committee to appropriately compensate the named executive officers based on the performance of the company and the individual.
At the end of each year, the Compensation Committee approves a specific annual incentive performance bonus amount to each named executive officer. The Compensation Committee’s 20072009 annual incentive
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performance bonus amounts for our named executive officers are discussed below under the heading “Named Executive Officer Compensation.” The Compensation Committee does not rely on predetermined formulas, weighted factors, specific benchmark percentiles or a limited set of criteria in making this decision. In determining the actual annual incentive performance bonus payable to a named executive officer, the Compensation Committee considers the overall performance of the company and the individual, market survey analysis provided by McLagan for comparable public and private asset management firms to obtain a general understanding of current comparable compensation practices (see “Compensation Consultant” below in this Proxy Statement), recommendations of our co-chief executive officers for the other named executive officers, historical compensation levels for each named executive officer, overall effectiveness of the executive compensation program and other subjective factors as the Compensation Committee deems relevant.
Annual incentive performance bonuses are generally paid in January of the year following the fiscal year performance period and are composed generally of cash and restricted stock units granted in lieu of cash, and mandatory and optional deferrals pursuant to our Mandatory Stock Bonus Program and Optional Stock Purchase Program under our Amended and Restated Stock Incentive Plan.
Mandatory Stock Bonus Program. In order to retain our executive officers and promote stock ownership, our policy is to mandatorily defer a significantmeaningful portion of thetheir total compensation granted to the named executive officers is mandatorily deferredpackage into restricted stock units pursuant to our Mandatory Stock Bonus Program under our Amended and Restated Stock Incentive Plan. Under the terms of our Mandatory Stock Bonus Program, we will match a portion of the mandatorily deferred amount in additional restricted stock units. Any dividends paid by us on our common stock will be
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reflected in additional restricted stock units on such deferred and company matching contribution amounts. The deferred amount and our matching contribution vest ratably over four years, and all accrued dividends vest on the fourth anniversary of the grant. Mr. Cohen and Mr. Steers did not participate in the Mandatory Stock Bonus Program in 2009 since the Compensation Committee determined that their 2009 annual incentive performance bonus be paid entirely in restricted stock units that vest over five years (for a further discussion of annual incentive performance bonus paid to Mr. Cohen and Mr. Steers, see “Named Executive Officer Compensation—Co-Chief Executive Officers” below in this Proxy Statement). For the amounts deferred under the Mandatory Stock Bonus Program for the other named executive officers, see the table contained on page 24.
Optional Stock Purchase Program. AllOur policy is to allow all of our employees mayto voluntarily defer a portion of their annual incentive performance bonus into restricted stock units pursuant to our Optional Stock Purchase Program under our Amended and Restated Stock Incentive Plan. Under the terms of our Optional Stock Purchase Program, we will match a portion of the optional deferred amount in additional restricted stock units. Any dividends paid by us on our common stock will be reflected in additional restricted stock units on such deferred and company matching contribution amounts. Pursuant to the terms of our Optional Stock Purchase Program, the voluntarily deferred amounts are immediately vested (but delivered on the third anniversary of grant) and the matching contributions and accrued dividends vest and are delivered on the third anniversary of the grant.
Other equity awards. The grant of equity awards is consistent with our pay at-risk pay philosophy, as the equity awards are generally conditioned on continued employment. In granting equity awards, the Compensation Committee’s objective is also to provide named executive officers with long-term incentive award opportunities that are consistent with awards made by companies in our industry and based on each named executive officer’s individual performance. Currently, we can provide named executive officers with restricted stock units that generally vest over five years, which are granted pursuant to our Amended and Restated Stock Incentive Plan. No dividends are paid on such restricted stock units.
Other compensation.Our named executive officers are generally eligible to participate, on an elective basis, in two other compensation plans that are generally available to all employees.
Employee Stock Purchase PlanPlan.. The purpose of the Employee Stock Purchase Plan is to encourage and enable eligible employees to purchase our stock at a discounted rate, thereby keeping the employees’ interests aligned with the interests of the shareholders. All named executive officers except(except Mr. Cohen and Mr. Steers, who are not eligible to participate) may participate in this plan on the same basis as all other eligible employees. Eligible employees may elect to contribute on an after-tax basis between 1% and 10% of their annual paysalary and incentive performance bonus to purchase our common stock; provided, however, that an employee may not
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contribute more than $25,000 to the plan under Internal Revenue Service restrictions. Shares are purchased at a 15% discount from the fair market value of our common stock on the last day of each of the four quarterly offering periods.
401(k) Savings PlanPlan. . We offer a tax-qualified 401(k) plan to all eligible employees. Employees may elect to contribute on a pre-tax basis between 1% and 100% of their annual pay into the 401(k) plan, up to the annual Internal Revenue Service maximum. We match 50% of employee contributions in cash in order to encourage employee participation and such matching contribution vests over a five year period.
Benefits and Perquisites
Our practice is to provide benefits and perquisites to executive officers that are the same as those offered to all of our other employees.
Compensation Consultant
The Compensation Committee has sole discretion to retain and terminate compensation consultant(s) to assist in the evaluation of the compensation of our executive officers. In 2007,2009, the Compensation Committee retained McLagan, as itsa leading compensation consultantconsulting and research firm, to advise it on all matters related to the senior executives’ compensation and our general compensation programs. McLagan advises the Compensation Committee in determining annual base salaries and annual incentive performance bonuses for senior executives and designing and determining their individual restricted stock unit grant levels. McLagan also assists the Compensation Committee by providing comparative market data on compensation practices and programs based on an analysis of peer competitors and provides guidance on industry trends and best practices.
The Company also periodically participates in industry seminars conducted by McLagan as well as asset management industry surveys that are conducted by McLagan which provide valuable information to the company in assessing its competitive pay levels. Further, from time to time, McLagan assists the Nominating and Corporate Governance Committee in setting director compensation.
Role of Management
Our senior management, under the leadership of our co-chief executive officers, plays an important role in establishing and maintaining our compensation programs. Senior management’s role includes recommending
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compensation plans and programs to the Compensation Committee, implementing the Compensation Committee’s decisions regarding the plans and programs and assisting and supporting the Compensation Committee in carrying out its duties.
Our co-chief executive officers regularly attend Compensation Committee meetings and provide information as to the individual performance of the other named executive officers and make annual recommendations to the Compensation Committee of appropriate compensation levels for all named executive officers other than themselves.
Risk Considerations in our Compensation Programs
The Compensation Committee has discussed the concept of risk as it relates to our compensation programs with management and McLagan, its compensation consultant, and the Compensation Committee does not believe the goals, or the underlying philosophy of our compensation programs encourage excessive or inappropriate risk taking. By utilizing a balanced approach to total compensation whereby we mandatorily defer a significant portion of compensation in the form of restricted stock units, as well as the promotion of long-term stock ownership among our employees, we seek to align compensation with the interests of our long-term shareholders.
Named Executive Officer Compensation
Co-Chief Executive OfficersOfficers.. The Compensation Committee established a 20072009 base salary of $500,000$750,000 for each of Mr. Cohen and Mr. Steers. This is the same base salary that each has received since 2005.Steers, unchanged from 2008. The Compensation Committee elected not to adjust their
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base salarysalaries for 2007Mr. Cohen and Mr. Steers for 2009 because it decideddetermined that their current salary amount remainssalaries remain reasonable and competitive.
On March 13, 2007,12, 2009, the Compensation Committee met and reviewed the general performance criteria for our company and for each of Mr. Cohen and Mr. Steers. TheAt that meeting, the Compensation Committee also determined that the maximum annual incentive performance bonus for each of Mr. Cohen and Mr. Steers would be no more than 3%4.5% of our 20072009 adjusted pre-tax profit, subject to the $5$10 million maximum payment amount set forth in the Amended and Restated Annual Incentive Plan. As previously discussed, in establishing this percentage, the Compensation Committee expected that their actual award for the fiscal year would be less than this maximum percentage.
On December 18, 2007,January 19, 2010, the Compensation Committee determinedmet to determine the actual amount of the2009 annual incentive performance bonusbonuses for each of Mr. Cohen and Mr. Steers. As part of this process, the Compensation Committee reviewed and assessed our company’s and each of Mr. Cohen’s and Mr. Steers’ performance, including the company’s net income, revenues, assets under management and inflows and other subjective measures including the successful continued globalization and diversification of our product offerings and the build-out of our organizational structure. measures.
In order to ensure that our executive compensation programs were competitive, with the assistance of McLagan, the Compensation Committee compares our co-chief executive officer’sconsidered advice from McLagan with respect to a comparison of Mr. Cohen and Mr. Steers’ compensation against those of fifteenfourteen publicly traded asset management companies (Affiliated Managers Group, Inc.; Alliance Capital Management Holding; AMVESCAP, PLC;Artio Global Investors Inc.; BlackRock, Inc.; Calamos Asset Management, Inc.; Eaton Vance Corp.; Federated Investors, Inc.; Franklin Resources, Inc.; GAMCO Investors, Inc.; Invesco Ltd.; Janus Capital Group, Inc.; BNY Mellon Asset Management International Limited; Nuveen Investments,Legg Mason, Inc.; Putnam Investments Co.; State Street Global Advisors; and T. Rowe Price Group, Inc.; and Waddell & Reed Investment Management Co.). However, due to our relatively smaller size compared to these companies, the Compensation Committee does not believe that it is appropriate to compare compensation levels based solely on these fifteenfourteen publicly traded peers. Therefore, the Compensation Committee also reviewed compensation information obtained from a special McLagan survey that contained twentythirty-three asset management firms of similar size.considered to be more comparable to the company relative to its size and/or overall complexity (Aberdeen Asset Management, Inc.; Acadian Asset Management, LLC; AEW Capital Management; Alcentra; Arnhold & S. Bleichroeder Advisers; Aronson+Johnson+Ortiz, LP; Artio Global Investors Inc.; AXA Rosenberg Investment Management Ltd.; Batterymarch Financial Management, Inc.; The Boston Company Asset Management, LLC; Brandywine Global Investment Management, LLC; Brown Brothers Harriman & Co.; Calamos Asset Management, Inc.; ClearBridge Advisors; DuPont Capital Management; First Quadrant Corporation; Fischer, Francis Trees & Watts, Inc.; Fortis Investment Management USA, Inc.; Harvard Management Company, Inc.; Heitman LLC; INTECH; NFJ Investment Group L.P.; NWQ Investment Management Company, LLC; PanAgora Asset Management, Inc.; Pioneer Investment Management, USA; ProFund Advisors LLC; Schroder Investment Management N. A. Inc.; Thornburg Investment Management; Tradewinds Global Investors, LLC; Virtus Investment Partners, Inc.; Voyageur Asset Management; Waddell & Reed Investment Management Co.; and William Blair & Company, L.L.C.).
Taking all of these factors into account,In determining the Compensation Committee set an annual incentive performance bonus amounts for each of Mr. Cohen and Mr. Steers, as set forth below.the Compensation Committee also considered the rebound in our company’s business and growth in assets under management in the second half of 2009 driven by organic growth and the investment performance of the portfolios managed by the company, coupled with the Compensation Committee’s goal of further aligning their interests with those of our shareholders. The Compensation Committee therefore determined that Mr. Cohen and Mr. Steers should be paid an annual incentive performance bonus for performance year 2009, and that such amount should be paid entirely in restricted stock units that vest and are delivered ratably over five years.
Name | 2007 Annual Incentive Performance Bonus | Total 2007 Annual Incentive Performance Bonus ($) | ||||||||||||
Cash ($) | Mandatory RSU Deferral ($) | Mandatory RSU Match ($) | Voluntary RSU Deferral ($) | Voluntary RSU Match ($) | RSU Award ($) | |||||||||
Martin Cohen | — | 2,500,000 | 625,000 | — | — | — | 3,125,000 | |||||||
Robert H. Steers | — | 2,500,000 | 625,000 | — | — | — | 3,125,000 |
Note22
The table below sets forth 2009 total compensation considered and approved by the Compensation Committee for Mr. Cohen and Mr. Steers, but is presented in a format that differs from the amounts required to be disclosed in the Summary Compensation Table by SEC regulations. Total compensation with respect to the 2008 and 2007 performance periods are included for comparative purposes.
Year | Annual Base Salary | Annual Incentive Performance Bonus | Total Compensation | |||||||||||||||
Name | Cash | Mandatory RSU Deferral | Mandatory RSU Match | Voluntary RSU Deferral | Voluntary RSU Match | RSU Award | ||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||
Martin Cohen | 2009 | 750,000 | — | — | — | — | — | 1,250,000 | 2,000,000 | |||||||||
2008 | 750,000 | — | — | — | — | — | — | 750,000 | ||||||||||
2007 | 500,000 | — | 2,500,000 | 625,000 | — | — | — | 3,625,000 | ||||||||||
Robert H. Steers | 2009 | 750,000 | — | — | — | — | — | 1,250,000 | 2,000,000 | |||||||||
2008 | 750,000 | — | — | — | — | — | — | 750,000 | ||||||||||
2007 | 500,000 | — | 2,500,000 | 625,000 | — | — | — | 3,625,000 |
The restricted stock unit amounts set out above for the 2009 performance period were actually granted in January 20082010 and therefore, are not reflected in the Summary Compensation Table or the 20072009 Grants of Plan-Based Awards table since they were not granted in 2007 nor included in compensation expense in 2007.2009.
Other Named Executive Officers.The Compensation Committee, based upon the recommendation of Mr. Cohen and Mr. Steers, approved 20072009 base salaries of $500,000 for Mr. Harvey and $300,000 for each of
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Mr. Stadler and Mr. Corl.Derechin. Annual base salaries for Messrs. Stadler and CorlDerechin have not changed since 2005 and for Mr. Harvey since 2006. The Compensation Committee elected not to adjust their base salaries for 20072009 because it decideddetermined that their current salary remainssalaries remain reasonable and competitive.
On March 13, 2007,12, 2009, the Compensation Committee met and reviewed the general performance criteria for our company and for each of Messrs. Harvey, Stadler and Corl. TheDerechin. At that meeting, the Compensation Committee also determined that the maximum annual incentive performance bonus for each of Messrs. Harvey, Stadler and CorlDerechin would be no more than 4.5%3.5%, 2.5% and 3.5%2.5%, respectively, of our 20072009 adjusted pre-tax profit, each subject to the $5$10 million maximum payment amount set forth in the Amended and Restated Annual Incentive Plan. As previously discussed, in establishing these percentages, the Compensation Committee expected that their actual awards for the fiscal year would be less than this maximum percentage.
On December 18, 2007,January 19, 2010, the Compensation Committee met and approved the actual amount of the annual incentive performance bonus for each of Messrs. Harvey, Stadler and Corl.Derechin. In approving these awards, the Compensation Committee considered the recommendations of the co-chief executive officers, the company’s performance measures that it considered in establishing the co-chief executive officers’ compensation,net income, revenues, assets under management and inflows, the historical annual incentive performance awards of each executive officer and other subjective factors about each executive officer including the responsibilities of the officer, the co-chief executive officers’ views as to the individual performance by the named executive officer during the fiscal year, and the co-chief executive officers’ views of the initiative, business judgment and management skills of the named executive officer.
The Compensation Committee also considered advice from McLagan as to compensation levels atAs was the same competitor asset management firms considered forcase with Mr. Cohen and Mr. Steers, in determining the co-chief executive officers.
Taking all of these factors into account, the Compensation Committee set an annual incentive performance bonus amounts to be paid to each of Messrs. Harvey, Stadler and Derechin, the Compensation Committee considered the rebound in our company’s business and assets under management in the second half of 2009, coupled with the Compensation Committee’s goals of retaining these executives and aligning their interests with those of our shareholders. The Compensation Committee therefore determined that the total annual incentive performance bonus to each of these executives should be increased for performance year 2009, but that any such increase would be made in restricted stock units that vest and are delivered ratably over five years.
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The table below sets forth 2009 total compensation considered and approved by the Compensation Committee for each of Messrs. Harvey, Stadler and CorlDerechin, but this table is presented in a format that differs from the amounts required to be disclosed in the Summary Compensation Table by SEC regulations. Total compensation with respect to the 2008 and 2007 performance periods for Mr. Harvey and Mr. Stadler, as set forth below.well as the 2008 performance period for Mr. Derechin, are included for comparative purposes.
Year | Annual Base Salary | Annual Incentive Performance Bonus | Total Compensation | |||||||||||||||||||||||||||||
Name | 2007 Annual Incentive Performance Bonus | Total 2007 Annual Incentive Performance Bonus ($) | Cash | Mandatory RSU Deferral | Mandatory RSU Match | Voluntary RSU Deferral | Voluntary RSU Match | RSU Award | ||||||||||||||||||||||||
Cash ($) | Mandatory RSU Deferral ($) | Mandatory RSU Match ($) | Voluntary RSU Deferral ($) | Voluntary RSU Match ($) | RSU Award ($) | |||||||||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||
Joseph M. Harvey | 705,000 | 945,000 | 236,250 | 550,000 | 137,500 | 300,000 | 2,873,750 | 2009 | 500,000 | 191,250 | 33,750 | 8,438 | — | — | 1,025,000 | 1,758,438 | ||||||||||||||||
2008 | 500,000 | 180,000 | 45,000 | 11,250 | 75,000 | 18,750 | 200,000 | 1,030,000 | ||||||||||||||||||||||||
2007 | 500,000 | 705,000 | 945,000 | 236,250 | 550,000 | 137,500 | 300,000 | 3,373,750 | ||||||||||||||||||||||||
Matthew S. Stadler | 415,000 | 560,000 | 140,000 | 325,000 | 81,250 | — | 1,521,250 | 2009 | 300,000 | 191,250 | 33,750 | 8,438 | — | — | 875,000 | 1,408,438 | ||||||||||||||||
2008 | 300,000 | 270,000 | 30,000 | 7,500 | — | — | 200,000 | 807,500 | ||||||||||||||||||||||||
James S. Corl | 1,162,500 | 787,500 | 196,875 | — | — | 250,000 | 2,396,875 | |||||||||||||||||||||||||
2007 | 300,000 | 415,000 | 560,000 | 140,000 | 325,000 | 81,250 | — | 1,821,250 | ||||||||||||||||||||||||
Adam M. Derechin | 2009 | 300,000 | 168,750 | 33,750 | 8,438 | 22,500 | 5,625 | 775,000 | 1,314,063 | |||||||||||||||||||||||
2008 | 300,000 | 270,000 | 30,000 | 7,500 | — | — | 100,000 | 707,500 |
Note that theThe restricted stock unit amounts set out above for the 2009 performance period were actually granted in January 20082010 and therefore, are not reflected in the Summary Compensation Table or the 20072009 Grants of Plan-Based Awards table since they were not granted in 2007 nor included in compensation expense in 2007.2009.
Termination and Change in Control Arrangements
Under the terms of the restricted stock unit award agreements made pursuant to our Amended and Restated Stock Incentive Plan, all employees who receive restricted stock unit awards are entitled to the immediate vesting of their restricted stock units if their employment is terminated by us without “cause” or by the employee for “good reason” (each as defined under the Amended and Restated Stock Incentive Plan) within the two year period following a change in control of the company. This “double trigger” provision is designed to address our employees’ concerns regarding a change in the majority ownership of our company from Mr. Cohen and Mr. Steers.
In addition, pursuant to the terms of their employment agreements, our co-chief executive officers are entitled to payments and benefits upon the occurrence of specified events, including termination of employment (with and without cause). The specific terms of our co-chief executive officers’ employment agreements are described in detail in “Employment Agreements with Martin Cohen and Robert H. Steers” below in this Proxy Statement. The terms of the employment agreements were set through the course of arms-length negotiations with each of our co-chief executive officers at the time of our initial public offering in 2004. As part of these negotiations, the company analyzed the terms of the same or similar arrangements for comparable executives
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employed by comparable companies and this approach was used by the company in setting the amounts payable and the triggering events under the arrangements.
An estimate of the compensation that would have been payable to our named executive officers upon the occurrence of the above termination events, as if each termination event occurred as of fiscal year-end, is described in detail in “Potential Payments Upon Termination or Change in Control” below in this Proxy Statement.
Compliance with Section 162(m) of the Internal Revenue Code
Section 162(m) of the Internal Revenue Code disallows a federal income tax deduction for compensation exceeding $1,000,000 paid to the named executive officers. However, compensation that is “performance based” (i.e.,(that is, compensation that is paid pursuant to pre-established objective performance goals that are based on criteria approved by the shareholders and that is determined and administered by the Compensation Committee according to related regulations)Committee) is excluded from this $1,000,000 limitation and is deductible.
Pursuant to transitional rules set forth in the regulations under Section 162(m) of the Internal Revenue Code, the $1,000,000 deduction limit did not apply to the compensation paid to the named executive officers in 2007 pursuant to the terms of our Amended and Restated Annual Incentive Plan and our Amended and Restated Stock Incentive Plan. Accordingly, all such compensation paid in 2007 should be deductible by us.
Further, ourOur compensation plans are structured so that all amounts paid under those plans should generally be fully deductible. To this end, the Compensation Committee annually establishes performance criteria in an effort to ensure deductibility of the awards made under the Amended and Restated Annual Incentive Plan and our Amended and Restated Stock Incentive Plan. Accordingly, all such compensation paid in 2009 should be deductible by us. However, based on the complexity of our business, the rapidly changing nature of the industry, as well as the continued competitive market for outstanding leadership talent, we believe it may be appropriate and competitive from time to time to consider certain compensation even though it ismay not be fully tax-deductible.
2124
Summary Compensation Table
The following summary compensation table sets forth information concerning the total compensation, during 2009, 2008 and 2007, of our co-chief executive officers, our chief financial officer and the next two most highly compensated executive officers.
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Name and Principal | Year | Salary | Bonus(1) | Stock Awards(2) | Option Awards | Non-Equity Incentive Plan Compensation | Change in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation(3) | Total | |||||||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||
Martin Cohen Co-Chairman and Co-CEO | 2009 | 750,000 | — | — | — | — | — | 32,462 | (4) | 782,462 | ||||||||||
2008 | 750,000 | — | 3,124,981 | — | — | — | 119,801 | (5) | 3,994,782 | |||||||||||
2007 | 500,000 | — | 2,074,893 | — | — | — | 60,226 | (6) | 2,635,119 | |||||||||||
Robert H. Steers Co-Chairman and Co-CEO | 2009 | 750,000 | — | — | — | — | — | 32,462 | (4) | 782,462 | ||||||||||
2008 | 750,000 | — | 3,124,981 | — | — | — | 119,801 | (5) | 3,994,782 | |||||||||||
2007 | 500,000 | — | 2,074,893 | — | — | — | 60,226 | (6) | 2,635,119 | |||||||||||
Joseph M. Harvey President | 2009 | 500,000 | — | 274,968 | — | 191,250 | — | 28,453 | (4) | 994,671 | ||||||||||
2008 | 500,000 | — | 1,618,724 | — | 255,000 | (7) | — | 110,780 | (5) | 2,484,504 | ||||||||||
2007 | 500,000 | — | 1,968,659 | — | 1,255,000 | (8) | — | 95,461 | (6) | 3,819,120 | ||||||||||
Matthew S. Stadler CFO | 2009 | 300,000 | — | 237,476 | — | 191,250 | — | 21,393 | (4) | 750,119 | ||||||||||
2008 | 300,000 | — | 781,197 | — | 270,000 | — | 67,391 | (5) | 1,418,588 | |||||||||||
2007 | 300,000 | — | 731,193 | — | 740,000 | (9) | — | 40,948 | (6) | 1,812,141 | ||||||||||
Adam M. Derechin COO | 2009 | 300,000 | — | 137,473 | — | 191,250 | (10) | — | 18,419 | (4) | 647,142 | |||||||||
2008 | 300,000 | — | 631,212 | — | 270,000 | — | 49,007 | (5) | 1,250,219 |
(1) | The |
Mr. Cohen and Mr. Steers received their entire annual incentive performance bonus for performance year 2009 in restricted stock units which were granted in January 2010 (see “Named Executive Officer Compensation—Co-Chief Executive Officers” above in this Proxy Statement). Therefore these amounts are not reported in this Summary Compensation Table, but will be reported in the 2010 Summary Compensation Table. |
(2) | The amounts in this column reflect the |
date of grant. The |
(3) | Perquisites and other personal benefits for each named executive officer were less than $10,000 in the aggregate and therefore, information regarding perquisites and other personal benefits has not been included. |
(4) | Includes a matching contribution in our 401(k) Plan of $11,000 for each of Messrs. Cohen, Steers and Stadler and $8,250 for each of Messrs. Harvey and Derechin. |
Also includes $21,462, $21,462, $20,203, $10,393 and $10,169 in dividend equivalents reflected in additional restricted stock units throughout 2009 on optional and mandatory restricted stock unit awards held by each of Messrs. Cohen, Steers, Harvey, Stadler and Derechin pursuant to our Optional Stock Purchase Program and Mandatory Stock Bonus Program. |
(5) | Includes a matching contribution in our 401(k) Plan of $10,250 for each of Messrs. Cohen, Steers and Stadler and $7,750 for each of |
Also includes $109,551, $109,551, $103,030, $57,141 and $41,257 in dividend equivalents reflected in additional restricted stock units throughout 2008 on optional and mandatory restricted stock unit awards held by each of Messrs. Cohen, Steers, Harvey, Stadler and Derechin pursuant to our Optional Stock Purchase Program and Mandatory Stock Bonus Program. |
(6) | Includes a matching contribution in our 401(k) Plan of $10,250 for each of Messrs. Cohen, Steers and Stadler and $7,750 for Mr. |
Also includes $49,976, $49,976, $87,711 |
Includes an annual incentive performance bonus cash amount of $705,000 and vested restricted stock units with a grant date fair value of $550,000 awarded to Mr. Harvey on January 25, 2008 pursuant to his election to voluntarily defer such amount under our Optional Stock Purchase Program in lieu of the payment of cash for a portion of his 2007 annual incentive performance bonus. |
(9) | Includes an annual incentive performance bonus cash amount of $415,000 and vested restricted stock units with a grant date fair value of $325,000 awarded to Mr. Stadler on January 25, 2008 pursuant to his election to voluntarily defer such amount under our Optional Stock Purchase Program in lieu of the payment of cash for a portion of his 2007 annual incentive performance bonus. |
(10) | Includes an annual incentive performance bonus cash amount of |
2225
20072009 Grants of Plan-Based Awards
The following table discloses the actual number of vested and unvested restricted stock units granted in 20072009 to our named executive officers and the grant date fair value of these awards.
Estimated Future Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) | Estimated Future Payouts Under Non-Equity Incentive Plan Awards(2) | Estimated Future Payouts Under Equity Incentive Plan Awards | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) | |||||||||||||||||||||||||||||||||||||||
Name | Grant Date | Action Date(1) | Thresh- old ($) | Target(2) ($) | Maxi- mum ($) | Thresh- old (#) | Target (#) | Maxi- mum (#) | Grant Date | Action Date(1) | Thresh- old ($) | Target ($) | Maxi- mum ($) | Thresh- old (#) | Target (#) | Maxi- mum (#) | ||||||||||||||||||||||||||||||||||
Martin Cohen | 1/26/07 | 12/18/06 | — | — | — | — | — | — | 47,324 | (3) | — | — | 2,274,865 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Robert H. Steers | 1/26/07 | 12/18/06 | — | — | — | — | — | — | 47,324 | (3) | — | — | 2,274,865 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Joseph M. Harvey | 1/26/07 | 1/14/07 | — | — | — | — | — | — | 53,955 | (4) | — | — | 2,593,617 | 1/30/09 | 1/21/09 | — | — | — | — | — | — | 25,662 | (3) | — | — | 274,968 | ||||||||||||||||||||||||
Matthew S. Stadler | 1/26/07 | 12/18/06 | — | — | — | — | — | — | 21,451 | (5) | — | — | 1,031,150 | 1/30/09 | 1/21/09 | — | — | — | — | — | — | 22,163 | (4) | — | — | 237,476 | ||||||||||||||||||||||||
James S. Corl | 1/26/07 | 12/18/06 | — | — | — | — | — | — | 22,752 | (6) | — | — | 1,093,689 | |||||||||||||||||||||||||||||||||||||
Adam M. Derechin | 1/30/09 | 1/21/09 | — | — | — | — | — | — | 12,830 | (5) | — | — | 137,473 |
(1) | Restricted stock unit awards, including those restricted stock units awarded pursuant to our Mandatory Stock Bonus Program and Optional Stock Purchase Program are generally granted in the year following the fiscal year performance period. For instance, the restricted stock units granted to each of the named executive officers for |
The Compensation Committee acted to award year-end equity based awards for the 2006 performance period at its regularly scheduled meetings on December 18, 2006 and January 14, 2007, with the grants becoming effective on January 26, 2007. The average of the high and low price of our common stock on January 26, 2007 was used to determine the number of restricted stock units to be granted.
The Compensation Committee acted to award year-end equity based awards for the 2008 performance period at its regularly scheduled meeting on January 21, 2009, with the grants becoming effective on January 30, 2009. The average of the high and low price of our common stock on January 30, 2009 was used to determine the number of restricted stock units to be granted. |
(2) | See “Annual Incentive Performance Bonus” and “Named Executive Officer Compensation” in this Proxy Statement for a discussion of non-equity incentive plan awards. |
(3) | Includes |
Also includes 27,043 restricted stock units from our mandatory deferral of a portion of the executive’s 2006 annual incentive performance bonus, plus 6,760 restricted stock units granted to the executive as a company match on his mandatory deferral. These restricted stock units will vest one-fourth ratably on the last business day of each of January 2008, 2009, 2010 and 2011. Any dividends paid by us on our common stock will be accrued in additional restricted stock units on such mandatorily deferred and company match amounts and will also be delivered on the last business day of January 2011. Payment of these mandatorily deferred amounts is contingent on continued employment.
Also includes 4,160 vested restricted stock units from the optional deferral by the executive of a portion of his 2006 annual incentive performance bonus, plus 1,040 restricted stock units granted to him as a company match on his optional bonus deferral. Any dividends paid by us on our common stock will be accrued in additional restricted stock units on such voluntarily deferred and company match amounts. These restricted stock units will be delivered on the last business day of January 2010, subject, in the case of the company match and the dividends, to continued employment.
Also includes 21,843 restricted stock units from our mandatory deferral of a portion of the executive’s 2006 annual incentive performance bonus, plus 5,460 restricted stock units granted to the executive as a company match on his mandatory deferral. These restricted stock units will vest one-fourth ratably on the last business day of each of January 2008, 2009, 2010 and 2011. Any dividends paid by us on our common stock will be accrued in additional restricted stock units on such mandatorily deferred and company match amounts and will also be delivered on the last business day of January 2011. Payment of these mandatorily deferred amounts is contingent on continued employment.
Also includes 13,001 vested restricted stock units from the optional deferral by the executive of a portion of his 2006 annual incentive performance bonus, plus 3,250 restricted stock units granted to him as a company match on his optional bonus deferral. Any dividends paid by us on our common stock will be accrued in additional restricted stock units on such voluntarily deferred and company match amounts. These restricted stock units will be delivered on the last business day of January 2010, subject, in the case of the company match and the dividends, to continued employment.
Also includes 6,240 vested restricted stock units from the optional deferral by the executive of a portion of his 2006 annual incentive performance bonus, plus 1,560 restricted stock units granted to him as a company match on his optional bonus deferral. Any dividends paid by us on our common stock will be accrued in additional restricted stock units on such voluntarily deferred and company match amounts. These restricted stock units will be delivered on the last business day of January 2010, subject, in the case of the company match and the dividends, to continued employment.
Does not include 6,999 vested restricted stock units from the optional deferral by the executive of a portion of his 2008 annual incentive performance bonus since the value of this optional deferral has been reported in the Summary Compensation Table as part of the non-equity incentive plan award awarded to Mr. Harvey in 2009, but does include 1,749 restricted stock units granted to him as a company match on his optional bonus deferral. Any dividends paid by us on our common stock will be accrued in additional restricted stock units on such voluntarily deferred and company match amounts. These restricted stock units will be delivered on the last business day of January 2012, subject, in the case of the company match and the dividends, to continued employment. |
Includes 18,665 restricted stock units that vest one-fifth ratably on the last business day of each of January 2010, 2011, 2012, 2013 and 2014. Delivery of the shares of common stock underlying these restricted stock units is contingent on continued employment. |
Also includes |
(5) | Includes 9,332 restricted stock units that vest one-fifth ratably on the last business day of each of January 2010, 2011, 2012, 2013 and 2014. Delivery of the shares of common stock underlying these restricted stock units is contingent on continued employment. |
23
Also includes 2,799 restricted stock units from our mandatory deferral of a portion of the executive’s 2008 annual incentive performance bonus, plus 699 restricted stock units granted to the executive as a company match on his mandatory deferral. These restricted stock units will vest one-fourth ratably on the last business day of each of January 2010, 2011, 2012 and 2013. Any dividends paid by us on our common stock will be accrued in additional restricted stock units on such mandatorily deferred and company match amounts and will also be delivered on the last business day of January 2013. Payment of these mandatorily deferred amounts is contingent on continued employment. |
26
20072009 Outstanding Equity Awards at Fiscal Year-End
The following table sets forth certain information regarding unvested restricted stock units for the named executive officers as of December 31, 2007.2009.
Name | Option Awards | Stock Awards | Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||||
Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested(1) ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | Number of Securities Underlying Unexercised Options Exercisable (#) | Number of Securities Underlying Unexercised Options Unexercisable (#) | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested(1) ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | |||||||||||||||||||||
Martin Cohen | — | — | — | — | — | 87,389 | (2) | 2,619,048 | — | — | — | — | — | — | — | 136,948 | (2) | 3,127,892 | — | — | ||||||||||||||||||
Robert H. Steers | — | — | — | — | — | 87,389 | (2) | 2,619,048 | — | — | — | — | — | — | — | 136,948 | (2) | 3,127,892 | — | — | ||||||||||||||||||
Joseph M. Harvey | — | — | — | — | — | 128,583 | (3) | 3,853,633 | — | — | — | — | — | — | — | 125,292 | (3) | 2,861,669 | — | — | ||||||||||||||||||
Matthew S. Stadler | — | — | — | — | — | 104,211 | (4) | 3,123,204 | — | — | — | — | — | — | — | 83,410 | (4) | 1,905,084 | — | — | ||||||||||||||||||
James S. Corl | — | — | — | — | — | 70,477 | (5) | 2,112,196 | — | — | ||||||||||||||||||||||||||||
Adam M. Derechin | — | — | — | — | — | 50,283 | (5) | 1,148,464 | — | — |
(1) | Based on the closing price of Cohen & Steers common stock of |
(2) | Includes |
(3) | Includes |
(4) | Includes |
(5) | Includes |
2427
20072009 Option Exercises and Stock Vested
The following table sets forth certain information regarding restricted stock units that vested in 20072009 for the named executive officers.
Name | Option Awards | Stock Awards | Option Awards | Stock Awards | ||||||||||||||
Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | |||||||||||
Martin Cohen | — | — | 32,545 | (1) | 1,230,741 | — | — | 49,413 | (1) | 540,633 | ||||||||
Robert H. Steers | — | — | 32,545 | (1) | 1,230,741 | — | — | 49,413 | (1) | 540,633 | ||||||||
Joseph M. Harvey | — | — | 72,022 | (2) | 2,802,018 | — | — | 58,927 | (2) | 655,090 | ||||||||
Matthew S. Stadler | — | — | 32,069 | (3) | 1,719,618 | — | — | 45,302 | (3) | 597,040 | ||||||||
James S. Corl | — | — | 30,829 | (4) | 1,091,321 | |||||||||||||
Adam M. Derechin | — | — | 19,748 | (4) | 220,716 |
(1) | Includes the vesting of 10,895 restricted stock units on January 27, |
(2) | Includes the vesting of 27,904 restricted stock units on January 27, 2009 with a value realized on vesting of $319,222 that were originally granted on January 27, 2006; 8,906 restricted stock units on January 31, 2009 with a value realized on vesting of $96,185 that were originally granted on January 26, 2007; 12,917 restricted stock units on January 31, 2009 with a value realized on vesting of $139,504 that were originally granted on January 25, 2008; and 2,201 dividend equivalents associated with the mandatory and optional stock programs on January 27, 2009 with a value realized on vesting of $25,179. Also includes the grant of |
(3) | Includes the vesting of |
(4) | Includes the vesting |
2528
Nonqualified Deferred Compensation
The following table provides a summary of the named executive officer’s participation in our Optional Stock Purchase Program during fiscal 2009 with respect to voluntarily deferred and vested, but undelivered restricted stock units and dividend equivalent restricted stock units thereon (for a discussion of the Optional Stock Purchase Program, see “Compensation Discussion and Analysis—Elements of Executive Compensation—Optional Stock Purchase Program” above in this Proxy Statement).
Name | Executive Contributions in Last Fiscal Year ($)(1) | Registrant Contributions in Last Fiscal Year ($)(2) | Aggregate Earnings (Losses) in Last Fiscal Year ($)(3) | Aggregate Withdrawals/ Distributions ($)(4) | Aggregate Balance at Last Fiscal Year End ($)(5) | |||||
Martin Cohen | — | — | 50,130 | — | 102,963 | |||||
Robert H. Steers | — | — | 50,130 | — | 102,963 | |||||
Joseph M. Harvey | 75,000 | — | 490,818 | 189,560 | 966,840 | |||||
Matthew S. Stadler | — | — | 221,397 | 104,070 | 439,761 | |||||
Adam M. Derechin | — | — | 174,433 | 60,655 | 348,196 |
(1) | This column represents the named executive officers’ voluntary deferrals in our Optional Stock Purchase Program during fiscal 2009. These restricted stock units are fully vested, but will be delivered on the third anniversary of grant. These values are also reflected in the “Non-equity Incentive Plan Compensation” column of the Summary Compensation Table (see footnote (7) to the Summary Compensation Table). |
(2) | Although the company matches the executive’s contributions in additional restricted stock units, these match restricted stock units are unvested and will be delivered on the third anniversary of grant, and as such, are not included in this table. The company match restricted stock units are, however, reflected in the “Stock Awards” column of the Summary Compensation Table. See footnote (2) to the Summary Compensation Table. |
(3) | This column represents the earnings during fiscal 2009 on 15,469, 8,493 and 4,950 vested restricted stock units that were voluntarily deferred by each of Messrs. Harvey, Stadler and Derechin, respectively, pursuant to our Optional Stock Purchase Program that were delivered in January 2009. Also includes earnings during fiscal 2009 on 4,160, 4,160, 39,996, 18,056 and 14,289 vested restricted stock units that were voluntarily deferred by each of Messrs. Cohen, Steers, Harvey, Stadler and Derechin, respectively, pursuant to our Optional Stock Purchase Program that have not yet been delivered. Also includes 48, 48, 461, 209 and 166 dividend equivalent restricted stock units for each of Messrs. Cohen, Steers, Harvey, Stadler and Derechin, respectively, that have been accrued during fiscal year 2009 with respect to the restricted stock units contained in this column. |
(4) | Represents the value realized on 15,469, 8,493 and 4,950 vested restricted stock units for each of Messrs. Harvey, Stadler and Derechin, respectively, that were delivered in fiscal 2009, plus the value realized on 1,101, 604 and 352 accrued dividend equivalent restricted stock units thereon for each of Messrs. Harvey, Stadler and Derechin, respectively. |
(5) | Represents the value of 4,160, 4,160, 39,996, 18,056 and 14,289 vested and undelivered restricted stock units for each of Messrs. Cohen, Steers, Harvey, Stadler and Derechin, respectively, as of December 31, 2009. These restricted stock units have been previously reported in the “Non-equity Incentive Plan Compensation” column of the Summary Compensation Table. Also includes the value of 348, 348, 2,335, 1,198 and 956 dividend equivalent restricted stock units as of December 31, 2009 for each of Messrs. Cohen, Steers, Harvey, Stadler and Derechin, respectively, that have been accrued with respect to these vested and undelivered restricted stock units. The values set forth in this column are based on the closing price of Cohen & Steers common stock of $22.84 on December 31, 2009. |
29
Potential Payments Upon Termination or Change in Control
We have entered into certain agreements and maintain certain plans that will require us to provide compensation to our named executive officers in the event of a termination of employment. The amount of compensation payable to each named executive officer in each situation is listed in the tables below.
Martin Cohen. The following table describes the potential payments upon termination for Martin Cohen, our co-chairman and co-chief executive officer.
Executive Benefits and | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death of the Executive | Disability of the Executive | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death of the Executive | Disability of the Executive | ||||||||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||||||
Compensation: | ||||||||||||||||||||||||||||||||||||||||
Base Salary ($500,000) | $ | 1,000,000 | — | $ | 1,000,000 | — | $ | 1,500,000 | — | — | ||||||||||||||||||||||||||||||
Base Salary ($750,000) | 1,500,000 | — | 1,500,000 | — | 2,250,000 | — | — | |||||||||||||||||||||||||||||||||
Annual Incentive Bonus | $ | 2,000,000 | — | $ | 2,000,000 | — | $ | 3,000,000 | $ | 1,000,000 | $ | 1,000,000 | 2,000,000 | — | 2,000,000 | — | 3,000,000 | 1,000,000 | 1,000,000 | |||||||||||||||||||||
Long Term Incentives Restricted Stock Units | — | — | — | — | $ | 2,619,048 | (3) | $ | 1,063,515 | (4) | $ | 1,063,515 | (4) | — | — | — | — | 3,127,892 | (4) | 2,516,123 | (5) | 2,516,123 | (5) | |||||||||||||||||
Benefits and Perquisites: | ||||||||||||||||||||||||||||||||||||||||
Continued Medical Benefits(2) | $ | 256,606 | $ | 256,606 | $ | 256,606 | — | $ | 256,606 | — | $ | 256,606 | 299,468 | 299,468 | 299,468 | — | 299,468 | — | 299,468 | |||||||||||||||||||||
Excise Tax Gross-Up(3) | — | — | — | — | 3,228,928 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 3,256,606 | $ | 256,606 | $ | 3,256,606 | — | $ | 7,375,654 | $ | 2,063,515 | $ | 2,320,121 | 3,799,468 | 299,468 | 3,799,468 | — | 11,906,288 | 3,516,123 | 3,815,591 |
(1) | Assumes the executive’s date of termination is December 31, |
(2) | The employment agreement with Mr. Cohen provides that, if the executive’s employment terminates for any reason other than by us for cause, then Mr. Cohen and his spouse and dependents will be entitled to continued coverage under our medical plans in which he was participating at the time of such termination for the remainder of his life, subject to payment by Mr. Cohen of the same premiums he would have paid during such period of coverage if he were an active employee. The value of the continued health benefits is based upon the |
(3) | The employment agreement with Mr. Cohen provides that, in the event payments under an employment agreement or otherwise result in a parachute excise tax to the executive, he will be entitled to a gross up payment equal to the amount of the excise tax, as well as the excise tax and income tax on the gross up payment. |
(4) | Includes the value of |
Includes |
2630
Robert H. Steers. The following table describes the potential payments upon termination for Robert H. Steers, our co-chairman and co-chief executive officer.
Executive Benefits and | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death of the Executive | Disability of the Executive | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death of the Executive | Disability of the Executive | ||||||||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||||||
Compensation: | ||||||||||||||||||||||||||||||||||||||||
Base Salary ($500,000) | $ | 1,000,000 | — | $ | 1,000,000 | — | $ | 1,500,000 | — | — | ||||||||||||||||||||||||||||||
Base Salary ($750,000) | 1,500,000 | — | 1,500,000 | — | 2,250,000 | — | — | |||||||||||||||||||||||||||||||||
Annual Incentive Bonus | $ | 2,000,000 | — | $ | 2,000,000 | — | $ | 3,000,000 | $ | 1,000,000 | $ | 1,000,000 | 2,000,000 | — | 2,000,000 | — | 3,000,000 | 1,000,000 | 1,000,000 | |||||||||||||||||||||
Long Term Incentives Restricted Stock Units | — | — | — | — | $ | 2,619,048 | (3) | $ | 1,063,315 | (4) | $ | 1,063,315 | (4) | — | — | — | — | 3,127,892 | (4) | 2,516,123 | (5) | 2,516,123 | (5) | |||||||||||||||||
Benefits and Perquisites: | ||||||||||||||||||||||||||||||||||||||||
Continued Medical Benefits(2) | $ | 325,702 | $ | 325,702 | $ | 325,702 | — | $ | 325,702 | — | $ | 325,702 | ||||||||||||||||||||||||||||
Continued Medical Benefits (2) | 386,629 | 386,629 | 386,629 | — | 386,629 | — | 386,629 | |||||||||||||||||||||||||||||||||
Excise Tax Gross-Up (3) | — | — | — | — | 2,898,815 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 3,325,702 | $ | 325,702 | $ | 3,325,702 | — | $ | 7,444,750 | $ | 2,063,515 | $ | 2,389,017 | 3,886,629 | 386,629 | 3,886,629 | — | 11,663,336 | 3,516,123 | 3,902,752 |
(1) | Assumes the executive’s date of termination is December 31, |
(2) | The employment agreement with Mr. Steers provides that, if the executive’s employment terminates for any reason other than by us for cause, then Mr. Steers and his spouse and dependents will be entitled to continued coverage under our medical plans in which he was participating at the time of such termination for the remainder of his life, subject to payment by Mr. Steers of the same premiums he would have paid during such period of coverage if he were an active employee. The value of the continued health benefits is based upon the |
(3) | The employment agreement with Mr. Steers provides that, in the event payments under an employment agreement or otherwise result in a parachute excise tax to the executive, he will be entitled to a gross up payment equal to the amount of the excise tax, as well as the excise tax and income tax on the gross up payment. |
(4) | Includes the value of |
Includes |
Joseph M. Harvey. The following table describes the potential payments upon termination for Joseph M. Harvey, our president.
Executive Benefits and | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death or Disability of the Executive | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death or Disability of the Executive | ||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||
Compensation: | ||||||||||||||||||||||||||||||
Long Term Incentives | ||||||||||||||||||||||||||||||
Restricted Stock Units | — | — | — | — | $ | 3,853,633 | (2) | $ | 1,441,197 | (3) | — | — | — | — | 2,861,669 | (2) | 1,525,415 | (3) |
(1) | Assumes the executive’s date of termination is December 31, |
(2) | Includes the value of |
(3) | Includes |
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Matthew S. Stadler. The following table describes the potential payments upon termination for Matthew S. Stadler, our executive vice president and chief financial officer.
Executive Benefits and | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death or Disability of the Executive | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death or Disability of the Executive | ||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||
Compensation: | ||||||||||||||||||||||||||||||
Long Term Incentives Restricted Stock Units | — | — | — | — | $ | 3,123,204 | (2) | $ | 742,747 | (3) | — | — | — | — | 1,905,084 | (2) | 844,486 | (3) |
(1) | Assumes the executive’s date of termination is December 31, |
(2) | Includes the value of |
(3) | Includes |
James S. Corl.Adam M. Derechin. The following table describes the potential payments upon termination for James S. Corl, an executive vice president.Adam M. Derechin, our chief operating officer.
Executive Benefits and | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death or Disability of the Executive | Voluntary Termination by Executive with Good Reason | Voluntary Termination by Executive without Good Reason | Involuntary Not for Cause Termination by the Company | For Cause Termination by the Company | Without Cause Termination by the Company or Good Reason Termination by Executive Following Change in Control | Death or Disability of the Executive | ||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||
Compensation: | ||||||||||||||||||||||||||||||
Long Term Incentives Restricted Stock Units | — | — | — | — | $ | 2,112,196 | (2) | $ | 1,125,643 | (3) | — | — | — | — | 1,148,464 | (2) | 708,063 | (3) |
(1) | Assumes the executive’s date of termination is December 31, |
(2) | Includes the value of |
(3) | Includes |
Assumptions. Below is a description of the assumptions that were used in creating the tables above. Unless otherwise noted, the descriptions of the payments below are applicable to all of the above tables relating to potential payments upon termination or change in control.
Excise Tax Gross-Up. Upon a change in control of our company, the executive may be subject to certain excise taxes pursuant to Section 4999 of the Internal Revenue Code. We have agreed to reimburse Mr. Cohen and Mr. Steers for all excise taxes that are imposed on the executive under Section 4999 and any income, employment and excise taxes that are payable by the executive as a result of reimbursements for Section 4999 excise taxes. The total Section 4999 gross-up amount in the above tables assumes that the executive is entitled to a full reimbursement by us of (1) any excise taxes that are imposed upon the executive as a result of our change in control, (2) any income, employment and excise taxes imposed upon the executive as a result of our reimbursement of the excise tax amount, and (3) any additional income, employment and excise taxes that are imposed upon the executive as a result of our reimbursement of the executive for any excise, employment or income taxes. The calculation of the Section 4999 gross-up amount in the above tables is based upon a Section 4999 excise tax rate of 20%, a 35% federal income tax
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rate, a 1.45% medicare tax rate, and the applicable local and state income tax rate. The discount rates used to compute the present value of accelerated payouts or accelerated vesting are determined by the Internal Revenue Service (120% of the applicable federal rates compounded semi-annually for December 2009 as referenced in Table 1 of Revenue Ruling 2009-38). For purposes of the Section 4999 calculation, it is assumed that no amounts will be discounted as attributable to a reasonable compensation and no value will be attributed to the executive executing a non-competition agreement.
Restricted Stock Unit Acceleration. The executives will be entitled to the acceleration of their unvested and/or undelivered restricted stock units as described in the tables above if executive’sexecutives’ employment is terminated by us without “cause,” or by the executive for “good reason,” each within the two-year period following a “change in control” of our company. Further, the executives will be entitled to the acceleration of their unvested and/or undelivered restricted stock units granted pursuant to our Optional Stock Purchase Program and Mandatory Stock Bonus Program upon the executive’s death or “disability.”
A “change in control” means the occurrence of any of the following events: (1) the complete liquidation of our company or the sale or disposition, in one or a series of related transactions, of all or substantially all, of our assets to any “person” or “group” other than certain permitted holders; (2) any person or group, other than the permitted holders, is or becomes the beneficial owner of our securities representing both (x) 20% or more of the combined voting power of the then outstanding securities of our company and (y) more of the combined voting power of the then outstanding securities of our company than Mr. Cohen and Mr. Steers in the aggregate; (3) during any period of twenty-four consecutive months, individuals who at the beginning of such period constituted the board nominated by Mr. Cohen
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and Mr. Steers cease for any reason to constitute a majority of the board, then in office; or (4) the consummation of any transaction or series of transactions resulting in a merger, consolidation or amalgamation, in which we are involved, other than a merger, consolidation or amalgamation which would result in our shareholders immediately prior thereto continuing to own, in the same proportion as immediately prior to the transaction(s), more than 50% of the combined voting power of our voting securities or such surviving entity outstanding immediately after such merger, consolidation or amalgamation.
A termination is for “cause” if it is for any of the following: (1) the executive’s continued failure substantially to perform the executive’s duties to us (other than as a result of total or partial incapacity due to physical or mental illness) for a period of 10 days following written notice by us to the executive of such failure, (2) the executive’s engagement in conduct inimical to our interests, including without limitation, fraud, embezzlement, theft or dishonesty in the course of the executive’s employment, (3) the executive’s commission of, or plea of guilty ornolo contendere to, (x) a felony or (y) a crime other than a felony, which involves a breach of trust or fiduciary duty owed to us or an affiliate, (4) the executive’s disclosure of our or our affiliates’ trade secrets or confidential information, or (5) the executive’s breach of any agreement with us or an affiliate, including, without limitation, any agreement with respect to confidentiality, nondisclosure, non-competition or otherwise.
A termination is “good reason” if it is for any of the following (1) the failure by us or one of our affiliates to pay or cause to be paid the executive’s base salary or annual bonus (to the extent earned in accordance with the terms of any applicable annual bonus or annual incentive arrangement), if any, when due or (2) any substantial and sustained diminution in the executive’s authority or responsibilities; provided that either of the events described in clauses (1) and (2) of this sentence shall constitute good reason only if we and our affiliates fail to cure such event within 30 days after receipt from the executive of written notice of the event which constitutes good reason; provided, further, that “good reason” shall cease to exist for an event on the 60th day following the later of its occurrence or the executive’s knowledge thereof, unless the executive has given us written notice thereof prior to such date.
“Disability” means the inability of the employee to perform in all material respects his or her duties and responsibilities to the company by reason of a physical or mental disability or infirmity which inability is reasonably expected to be permanent and has continued (1) for a period of six consecutive months or (2) such shorter period as the Compensation Committee may reasonably determine in good faith. The disability determination is made in the sole discretion of the Compensation Committee.
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Pension Benefits
Other than our broad-based 401(k) Plan, we do not sponsor any pension plans.
Employment Agreements with Martin Cohen and Robert H. Steers
We have entered into identical employment agreements with Martin Cohen and Robert H. Steers (each, an “Executive”). Each employment agreement provides for the Executive’s employment as our co-chief executive officer and co-chairman of the Board of Directors. The employment agreements automatically extend for one-year periods unless either party gives the other 60 days prior notice that the term will not be extended.
Each employment agreement providesprovided for an initial annual base salary of $500,000 or such other amount as is determined in the sole discretion of the Board of Directors (which was adjusted to $750,000 effective January 1, 2008), and an annual incentive performance bonus as approved in the discretion of the Compensation Committee. The employment agreements previously provided for a minimum annual performance bonus amount of $1,000,000, but this provision was subsequently removed by amendment on February 27, 2008.
During the term, each Executive will be entitled to:
(1) employee benefits that are no less favorable than those employee benefits provided to him before the company’s initial public offering; and
(2) participate in all of our employee benefit programs on a basis which is no less favorable than is provided to any of our other executives.
Termination of employment. Pursuant to each employment agreement, if the Executive’s employment terminates prior to the expiration of the term due to his death or disability, the Executive will be entitled to receive:
(1) a payment equal to his target annual incentive performance bonus ($1,000,000) for the fiscal year in which the termination occurs;
(2) any accrued, but unpaid, base salary through the date of termination; and
(3) any accrued and earned, but unpaid, annual incentive performance bonus for any previously completed fiscal year.
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As set forth in each employment agreement, if an Executive’s employment is terminated prior to the expiration of the term by us without “cause” or by the Executive for “good reason” or if we elect not to extend the term (each a “qualifying termination”), the Executive will be entitled, subject to his compliance with certain restrictive covenants, to a lump sum payment equal to two times (three times in the case of a qualifying termination that occurs on or following a change in control) the sum of his annual base salary and his target annual incentive performance bonus for the fiscal year in which the termination occurs. Any termination by us without cause within six months prior to a change in control will be deemed to be a termination of employment on the date of such change in control.
In the event of a termination of an Executive’s employment which is not a qualifying termination or a termination due to the Executive’s death or disability (including if the Executive resigns without good reason), the Executive will be entitled to receive only the accrued but unpaid salary through the date of termination and earned but unpaid bonus for the previously completed fiscal year.
Each employment agreement generally provides that, if the Executive’s employment terminates for any reason other than by us for cause, the Executive and his spouse and dependents will be entitled to continued coverage under our medical plans in which he was participating at the time of such termination for the remainder of his life, subject to payment by the Executive of the same premiums he would have paid during such period of coverage if he were an active employee. In addition, each employment agreement provides that, in the event payments under an employment agreement or otherwise result in a parachute excise tax to the Executive, he will be entitled to a gross up payment equal to the amount of the excise tax, as well as the excise tax and income tax on the gross up payment.
Restrictive covenants.Non-competition. Pursuant to each employment agreement, during the term of the agreement and, if the Executive’s employment is terminated by us for cause or by the Executive without good
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reason or the Executive elects not to extend the term, for one year following such termination of employment, the Executive generally will be prohibited from:
(1) seeking to provide or providing investment advisory services to certain persons to whom we or any of our affiliates render services;
(2) soliciting or seeking to induce or actually inducing certain of our employees or employees of our affiliates to discontinue their employment with us or hiring or employing such employees;
(3) competing with us and our affiliates;
(4) acquiring a financial interest in, or otherwise becoming actively involved with, any competitive business; and
(5) interfering with, or attempting to interfere with, business relationships between us or any of our affiliates and our customers, clients, suppliers, partners, members or investors.
Confidentiality, Intellectual Property and Non-Disclosure. Each Executive is subject to customary confidentiality, intellectual property and non-disclosure covenants, including a covenant which, in general, prohibits the Executive from disclosing, retaining or using for his or any other person’s benefit our confidential information and a covenant which, in general, requires the Executive to assign, transfer and convey to Cohen & Steers all rights and intellectual rights to any works of authorship, inventions, intellectual property, materials, documents or other work product by the Executive.
If the Executive breaches any of the restrictive covenants or the confidentiality, intellectual property or non-disclosure covenants, in addition to any remedies at law, the Executive agrees that we will be entitled to cease making any payments or providing any benefit otherwise required by the employment agreement and obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available.
If a dispute arises out of the employment agreement with an Executive, we will pay the Executive’s reasonable legal fees and expenses incurred in connection with such dispute if the Executive prevails in substantially all material respects on the issues presented for resolution.
Each employment agreement also provides that upon a termination of the Executive’s employment for any reason, in general, the Executive will retain the right to use his name in connection with future business ventures.
Equity Compensation Plan Information
30The following table summarizes information, as of December 31, 2009, relating to our equity compensation plans pursuant to which grants of restricted stock units or other rights to acquire shares of our common stock may be granted from time to time.
Plan Category | Number of securities issued upon exercise of outstanding options, warrants and rights | Weighted- average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column) | ||||
Approved | |||||||
Amended and Restated Cohen & Steers, Inc. 2004 Stock Incentive Plan | 8,498,514 | (1) | 5,501,486 | ||||
Cohen & Steers, Inc. 2004 Employee Stock Purchase Plan | N/A | N/A | 243,194 | (2) | |||
Total Approved by Shareholders | 8,498,514 | (1) | 5,744,680 | ||||
Not Approved | |||||||
None | — | — | — |
(1) | All of the awards granted under our Amended and Restated Stock Incentive Plan are restricted stock units, which by their nature do not have an exercise price. |
(2) | 256,806 shares of the company’s common stock have been issued pursuant to the Cohen & Steers, Inc. 2004 Employee Stock Purchase Plan, whereby employees may purchase shares of the company’s common stock at 85% of the fair market value of our common stock on last business day of each three-month offering period. |
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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Approval of Related Party Transactions
We have adopted a written policy whereby all employees, directors and certain other related parties (as defined in paragraph (a) of Item 404 of Regulation S-K) who have a direct or indirect beneficial interest in a transaction or agreement in which we are a participant (regardless of the dollar amount involved in the transaction or whether the transaction must be disclosed publicly by us, but excluding all typical employee/employer transactions such as compensation or participation in any of the benefit plans we sponsor) must promptly disclose the facts and circumstances of that transaction or agreement to our general counsel. The general counsel will promptly communicate all such information to management and the Audit Committee. Management, in consultation with the Audit Committee, then determines whether the transaction may be consummated or permitted to continue.
If such transaction or agreement rises to the level of a “related party transaction,” then such transaction may not be consummated or continue without the approval or ratification of the Audit Committee. Members of the Audit Committee interested in a related party transaction must recuse themselves from any such vote. For these purposes, a “related party transaction” is any transaction that is (1) reportable by us under paragraph (a) of Item 404 of Regulation S-K, (2) in which we were or are to be a participant, (3) the amount involved exceeds $120,000 and (4) in which any related party had or will have a direct or indirect material interest.
Transactions or other arrangements between us and our client accounts, including registered investment companies for which we serve as an investment advisor, need not be approved or ratified. Further, asset management or other financial service relationships (such as those involving investment in various of our funds, investment vehicles or accounts) provided either by or to us and involving a director or employee (or his or her immediate family members, or a company or charitable organization of which the director or employee or an immediate family member is (or, at the time of the transaction, was) a partner, shareholder, officer, employee or director) need not be approved or ratified so long as the following condition is satisfied: the products and services are being provided in the ordinary course of business and on substantially the same terms and conditions, including price, as would be available to similarly situated customers.
Cohen & Steers Mutual Funds
The mutual funds for which we are the investment advisor are funds that we established and are marketed under our name. Mr. Cohen and Mr. Steers, our co-chairmen and co-chief executive officers, serve as co-chairmen of each Cohen & Steers closed-end and open-end mutual fund. Mr. Harvey, our president, serves as a vice-president of each Cohen & Steers closed-end and open-end mutual fund. Mr. Derechin, our chief operating officer, serves as chief executive officer and president of each Cohen & Steers closed-end and open-end mutual fund. Messrs. Cohen, Steers, Harvey and HarveyStadler do not receive compensation for their services from any Cohen & Steers mutual fund. There are no relationships between our other directors and the Cohen & Steers mutual funds or the institutional separate accounts for which we are the investment advisor.
S-corporation Distributions and Tax Indemnification Agreement
Since we were organized in 1986 and until our initial public offering in 2004, we were treated for federal and certain state income tax purposes as an S-corporation under Subchapter S of the Internal Revenue Code. As a result, our earnings were taxed, with certain exceptions, directly to our shareholders, Mr. Cohen and Mr. Steers, rather than to us, leaving our shareholders responsible for paying income taxes on these earnings. We historically paid distributions to our shareholders to enable them to pay their income tax liabilities as a result of our status as an S-corporation and, from time to time, to distribute previously undistributed S-corporation earnings and profits.
We have entered into a tax indemnification agreement with Mr. Cohen and Mr. Steers. Although we believe that we have met the requirements for an S-corporation, the agreement provides for, among other things, Mr. Cohen and Mr. Steers to indemnify us for any additional U.S. federal and state income taxes, including interest and penalties, incurred by us if for any reason we are deemed to have been a C-corporation during any period in which we reported our taxable income as an S-corporation. The tax indemnification obligation of Mr. Cohen and Mr. Steers will be limited to the aggregate amount of all distributions we made to them to pay
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taxes during any time that we reported our taxable income as an S-corporation but are deemed to have been a
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C-corporation. The agreement also provides for payment by Mr. Cohen and Mr. Steers to us and by us to Mr. Cohen and Mr. Steers to adjust for any increases or decreases in tax liability arising from a tax audit that affects our tax liability and results in a corresponding adjustment to the tax liability of Mr. Cohen and Mr. Steers. We will increase, or gross up, our indemnification payments to Mr. Cohen and Mr. Steers to the extent necessary to take into account the increase in current tax liability incurred by Mr. Cohen and Mr. Steers on account of the indemnification payments. The amount of any payment cannot exceed the amount of benefit received by us or Mr. Cohen and Mr. Steers attributable to the adjustment in tax liability.
Registration Rights Agreement
Mr. Cohen and Mr. Steers have entered into a registration rights agreement with us, pursuant to which we have granted to them, their affiliates and certain of their transferees the right, as described below, to require us to register under the Securities Act shares of common stock (and other securities convertible into or exchangeable or exercisable for shares of common stock) held by them. Such registration rights are generally available to the rights holders until registration under the Securities Act is no longer required to enable them to resell the registrable securities owned by them. The registration rights agreement provides, among other things, that we will pay all expenses in connection with the first ten demand registrations requested by the rights holders and in connection with any registration commenced by us in which the rights holders participate through “piggyback” registration rights granted under such agreement. We have the right to postpone any demand registration if to register would require an audit of us other than our regular audit, if another registration statement which was not effected on Form S-3 has been declared effective under the Securities Act within 180 days or, for a period of 90 days, if we determine that it is in our best interests to do so. The rights of the rights holders to exercise their “piggyback” registration rights are subject to our right to reduce on a pro rata basis among all requesting holders the number of requested shares of common stock to be registered if in the opinion of the managing underwriter the total number of shares to be so registered exceeds that number which may be sold without having an adverse effect on the price, timing or distribution of the offering of the shares.
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ITEM 2:
APPROVAL OF AMENDED AND RESTATED STOCK INCENTIVE PLAN
We are asking our shareholders to approve the Amended and Restated Cohen & Steers, Inc. 2004 Stock Incentive Plan (as amended, the Amended and Restated Stock Incentive Plan) which has been amended to increase the number of shares of common stock with respect to which awards may be granted under the plan by 4,500,000 shares, subject to approval by our shareholders at the Annual Meeting. In this proposal, we are also asking our shareholders to re-approve the Amended and Restated Annual Incentive Plan. NYSE rules require that we obtain shareholder approval of the Amended and Restated Stock Incentive Plan in order for it to be effective.
The Amended and Restated Stock Incentive Plan is administered by the Compensation Committee, which is comprised of four independent Directors. The Amended and Restated Stock Incentive Plan permits the grant of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards to our employees, directors or consultants or those of our affiliates. The Compensation Committee has discretion to select the individuals to whom awards will be granted and to determine the type, size and terms of each award and has the authority to administer, construe and interpret the Amended and Restated Stock Incentive Plan. The Amended and Restated Stock Incentive Plan is primarily intended to provide broad-based equity compensation awards across all levels of the company. All of our employees (215 as of March 18, 2008) are eligible to participate in the Amended and Restated Stock Incentive Plan.
Prior to our initial public offering, our shareholders approved the Amended and Restated Stock Incentive Plan on June 7, 2004. As adopted, a total of 9,500,000 shares of common stock were initially reserved for issuance under the Amended and Restated Stock Incentive Plan. As of March 18, 2008, we had granted awards under the Amended and Restated Stock Incentive Plan with respect to 8,033,943 shares of common stock, leaving only 1,466,057 shares available for future awards under the Amended and Restated Stock Incentive Plan, subject to increases due to awards being forfeited or terminated, which are again available for grant under the Amended and Restated Stock Incentive Plan.
A key element of the Firm’s compensation philosophy is to deliver a portion of our employees’ total compensation in the form of stock-based awards. Through our mandatory and optional deferral programs, as well as other equity grants, restricted stock units comprise a significant portion of the total compensation package for our employees. We believe that stock-based awards foster an employee-ownership culture that aligns the interests of our employees directly with those of our shareholders and encourages employees to be prudent risk managers and to work together to ensure our continued financial success over time. Stock-based compensation also helps to retain high-performing employees through retention features such as significant vesting provisions and forfeiture provisions. In the event that a stock-based award is forfeited by an employee, the value of the award remains with the company. These restrictions also enhance shareholder alignment by having employees share in the upside and downside risk over any cyclical market periods that occur within the financial services industry. The Board of Directors unanimously recommends that the shareholders approve the Amended and Restated Stock Incentive Plan in order to permit us to continue to compensate employees, directors and consultants in part with stock-based awards rather than cash.
This proposal is also being submitted to our shareholders in order to ensure the Amended and Restated Stock Incentive Plan’s continued compliance with Section 162(m) of the Internal Revenue Code. Section 162(m) of the Internal Revenue Code denies a tax deduction for certain compensation in excess of $1,000,000 per year paid by a company to Covered Employees. Certain compensation, including compensation based on the attainment of performance goals, is excluded from this deduction limit if certain requirements are met. Among these requirements is that the material terms pursuant to which the compensation is to be paid are disclosed and approved by shareholders prior to payment.
For the reasons stated above, the Board of Directors unanimously recommends a vote “FOR” approval of the Amended and Restated Stock Incentive Plan.
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Description of the Amended and Restated Stock Incentive Plan
The following description of the Amended and Restated Stock Incentive Plan is not complete and is qualified by reference to the full text of the Amended and Restated Stock Incentive Plan, which is attached hereto as Appendix A.
The Amended and Restated Stock Incentive Plan permits the grant of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards to our employees, directors or consultants or those of our affiliates. As amended, a maximum of 14,000,000 shares of common stock may be subject to awards under the Amended and Restated Stock Incentive Plan. The maximum number of shares of common stock for which options and stock appreciation rights may be granted during a calendar year to any participant is 1,000,000. The number of shares of common stock issued or reserved pursuant to the Amended and Restated Stock Incentive Plan, or pursuant to outstanding awards, is subject to adjustment on account of mergers, consolidations, reorganizations, stock splits, stock dividends and other dilutive changes in the shares of common stock. Shares of common stock covered by awards that expire, terminate or lapse will again be available for grant under the Amended and Restated Stock Incentive Plan.
Administration. The Amended and Restated Stock Incentive Plan is administered by the Compensation Committee, which may delegate its duties and powers in whole or in part as it determines. However, our Board of Directors may take any action designated to the Compensation Committee under the Amended and Restated Stock Incentive Plan as it may deem necessary. The Compensation Committee has the sole discretion to determine the employees, directors and consultants to whom awards may be granted under the Amended and Restated Stock Incentive Plan and the manner in which such awards will vest. Options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards will be granted by the Compensation Committee to employees, directors and consultants in such numbers and at such times during the term of the Amended and Restated Stock Incentive Plan as the Compensation Committee shall determine. The Compensation Committee is authorized to interpret the Amended and Restated Stock Incentive Plan, to establish, amend and rescind any rules and regulations relating to the Amended and Restated Stock Incentive Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Amended and Restated Stock Incentive Plan. The Compensation Committee may correct any defect, supply any omission or reconcile any inconsistency in the Amended and Restated Stock Incentive Plan in the manner and to the extent the Compensation Committee deems necessary or desirable.
Restricted Stock Units and Other Stock-Based Awards. The Compensation Committee may grant awards of restricted stock units, shares of common stock, restricted stock and awards that are valued in whole or in part by reference to, or are otherwise based on the fair market value of, shares. The restricted stock units and other stock-based awards will be subject to the terms and conditions established by the Compensation Committee.
Options. The Compensation Committee shall determine the exercise price for each option; provided, however, that an option must have an exercise price that is at least equal to the fair market value of a share of common stock on the date the option is granted. An option holder may exercise an option by written notice and payment of the exercise price (1) in cash, (2) to the extent permitted by the Compensation Committee, by the surrender of a number of shares of common stock already owned by the option holder for at least six months, or other period consistent with applicable accounting rules, with a fair market value equal to the exercise price, (3) in a combination of cash and shares of common stock (as qualified by clause (2)), or (4) through the delivery of irrevocable instructions to a broker to sell shares obtained upon the exercise of the option and deliver to us an amount equal to the exercise price for the shares of common stock being purchased. Option holders who are subject to the withholding of federal and state income tax as a result of exercising an option may satisfy the income tax withholding obligation through the withholding of a portion of the shares of common stock to be received upon exercise of the option.
Stock Appreciation Rights. The Compensation Committee may grant stock appreciation rights independent of or in connection with an option. The exercise price per share of a stock appreciation right shall be an amount determined by the Compensation Committee. Generally, each stock appreciation right shall entitle a participant upon exercise to an amount equal to the product of (1) the excess of (A) the fair market value on the exercise date of one share of common stock over (B) the exercise price per share, times (2) the number of shares of common
34
stock covered by the stock appreciation right. Payment shall be made in shares of common stock or in cash, or partly in shares of common stock and partly in cash, all as shall be determined by the Compensation Committee.
Performance-Based Awards. During any period when Section 162(m) of the Internal Revenue Code is applicable to us and the Amended and Restated Stock Incentive Plan, certain other stock-based awards may be granted in a manner designed to make them deductible by us under Section 162(m) of the Internal Revenue Code (“Performance-Based Awards”). Such Performance-Based Awards will be determined based on the attainment of written objective performance goals approved by the Compensation Committee for a performance period of between one and five years. The Compensation Committee will establish the performance goals applicable to a performance period (1) while the outcome for that performance period is substantially uncertain and (2) no more than 90 days after the commencement of the performance period to which the performance goals relate or, if less, the number of days which is equal to 25% of the relevant performance period. The performance goals will be based upon one or more of the following criteria: (1) consolidated earnings before or after taxes (including earnings before interest, taxes, depreciation and amortization); (2) net income; (3) operating income; (4) earnings per share; (5) book value per share; (6) return on shareholders’ equity; (7) expense management; (8) return on investment; (9) improvements in capital structure; (10) profitability of an identifiable business unit or product; (11) maintenance or improvement of profit margins; (12) stock price; (13) market share; (14) revenue or sales; (15) costs; (16) cash flow; (17) working capital; (18) return on assets; (19) assets under management; and (20) total return. The maximum amount of a Performance-Based Award payable to any one participant under the Amended and Restated Stock Incentive Plan for a performance period is 1,000,000 shares of common stock or, in the event the Performance-Based Award is paid in cash, the equivalent cash value thereof on the last day of the performance period to which such Performance-Based Award relates.
Transferability. Unless otherwise determined by the Compensation Committee, awards granted under the Amended and Restated Stock Incentive Plan are not transferable other than by will or by the laws of descent and distribution.
Change in Control. In the event of a change in control (as defined in the Amended and Restated Stock Incentive Plan), (1) if determined by the Compensation Committee, any outstanding awards then held by participants which are unexercisable or otherwise unvested or subject to lapse restrictions shall automatically be deemed exercisable or otherwise vested or no longer subject to lapse restrictions, as the case may be, as of immediately prior to the change in control and (2) the Compensation Committee may (A) cancel the awards for fair value as determined by the Compensation Committee, (B) provide for the issuance of substitute awards that will substantially preserve the otherwise applicable terms of any affected awards previously granted under the Amended and Restated Stock Incentive Plan, as determined by the Compensation Committee, or (C) provide that for a period of at least 15 days prior to the change in control, the options will be exercisable as to all shares subject to such options and that the options will terminate upon the occurrence of the change in control. If a participant’s employment with us and our affiliates is terminated by the participant for “good reason” or by us without “cause” within the two-year period following a change in control, any outstanding awards then held by the participant which are unexercisable or otherwise unvested or subject to lapse restrictions shall automatically be deemed exercisable or otherwise vested or no longer subject to lapse restrictions, as the case may be, as of the date of such termination of employment.
Amendment and Termination. Our Board of Directors may amend, alter or discontinue the Amended and Restated Stock Incentive Plan in any respect at any time, but no amendment, alteration or discontinuance may diminish any of the rights of a participant under any awards previously granted, without his or her consent. Unless earlier terminated, the Amended and Restated Stock Incentive Plan will expire on June 7, 2014.
New Plan Benefits under the Amended and Restated Annual Incentive Plan. Because future awards under the Amended and Restated Stock Incentive Plan will be granted at the discretion of the Compensation Committee, the type, number, recipients, and other terms of such awards cannot be determined at this time.
35
Equity Compensation Plan Information
The following table summarizes information, as of December 31, 2007, relating to our equity compensation plans pursuant to which grants of restricted stock units or other rights to acquire shares of our common stock may be granted from time to time.
Plan Category | Number of securities issued upon exercise of outstanding options, warrants and rights | Weighted- average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column) | |||
Approved | ||||||
Amended and Restated Cohen & Steers, Inc. 2004 Stock Incentive Plan | 6,990,182 | (1) | 2,509,818 | |||
Cohen & Steers, Inc. 2004 Employee Stock Purchase Plan | 172,689 | (2) | 327,311 | |||
Total Approved by Shareholders | 7,162,871 | (1)(2) | 2,837,129 | |||
Not Approved | ||||||
None | — | — | — |
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ITEM 3:
APPROVAL OF THE AMENDED AND RESTATED ANNUAL INCENTIVE PLAN
We are asking our shareholders to approve the Amended and Restated Cohen & Steers, Inc. 2004 Annual Incentive Plan (as amended, the Amended and Restated Annual Incentive Plan), which has been amended to increase the maximum bonus payment a participant may receive for a performance period under the Amended and Restated Annual Incentive Plan from $5,000,000 to $10,000,000. In this proposal, we are also asking our shareholders to re-approve the Amended and Restated Annual Incentive Plan.
The Board of Directors believes that the amendment increasing the maximum annual payment is necessary to provide flexibility to the Compensation Committee in structuring our annual compensation program in the future and for the company to continue to offer competitive compensation to its key executives.
This proposal is also being submitted to our shareholders in order to ensure the Amended and Restated Annual Incentive Plan’s continued compliance with Section 162(m) of the Internal Revenue Code. Section 162(m) of the Internal Revenue Code denies a tax deduction for certain compensation in excess of $1,000,000 per year paid by a company to Covered Employees. Certain compensation, including compensation based on the attainment of performance goals, is excluded from this deduction limit if certain requirements are met. Among these requirements is that the material terms pursuant to which the compensation is to be paid are disclosed and approved by shareholders prior to payment.
For the reasons stated above, the Board of Directors unanimously recommends a vote “FOR” approval of the Amended and Restated Annual Incentive Plan.
Description of the Amended and Restated Annual Incentive Plan
The following description of the Amended and Restated Annual Incentive Plan is not complete and is qualified by reference to the full text of the Amended and Restated Annual Incentive Plan, which is attached hereto as Appendix B.
Purpose.The Amended and Restated Annual Incentive Plan is a bonus plan designed to provide certain of our employees with incentive compensation based upon the achievement of pre-established performance goals. The Amended and Restated Annual Incentive Plan is designed to comply with the performance-based compensation exemption from Section 162(m) of the Internal Revenue Code during any period during which Section 162(m) of the Internal Revenue Code is applicable. The purpose of the Amended and Restated Annual Incentive Plan is to attract, retain, motivate and reward participants by providing them with the opportunity to earn competitive compensation directly linked to our performance.
Administration.The Amended and Restated Annual Incentive Plan is administered by the Compensation Committee. However, our Board of Directors may take any action designated to the Compensation Committee under the Amended and Restated Annual Incentive Plan as it may deem necessary. The Compensation Committee may delegate its authority under the Amended and Restated Annual Incentive Plan except in cases where such delegation would disqualify compensation paid under the Amended and Restated Annual Incentive Plan intended to be exempt under Section 162(m) of the Internal Revenue Code.
Eligibility; Awards. Awards may be granted to our officers and key employees in the sole discretion of the Compensation Committee. The Amended and Restated Annual Incentive Plan provides for the payment of incentive bonuses, in the form of cash, restricted stock, restricted stock units, stock appreciation rights, stock options (of equivalent value) and/or some combination of the foregoing. Any equity-based awards will be made pursuant to the Amended and Restated Stock Incentive Plan.
Performance Goals.The Compensation Committee establishes the performance periods over which performance objectives will be measured. A performance period may be for a fiscal year or a multi-year cycle, as determined by the Compensation Committee. Within 90 days after each performance period begins (or such other date as may be required by Section 162(m) of the Internal Revenue Code), the Compensation Committee will establish (1) the performance objective or objectives that must be satisfied for a participant to receive a bonus for
37
such performance period, and (2) the target incentive bonus for each participant. Notwithstanding the foregoing, with respect to the performance period during which the effective date of the Amended and Restated Annual Incentive Plan occurs, the Compensation Committee shall establish such performance objectives and target incentive bonuses within 60 days after the effective date. Performance objectives will be based upon one or more of the following criteria, as determined by the Compensation Committee: (1) consolidated earnings before or after taxes (including earnings before interest, taxes, depreciation and amortization); (2) net income; (3) operating income; (4) earnings per share; (5) book value per share; (6) return on shareholders’ equity; (7) expense management; (8) return on investment; (9) improvements in capital structure; (10) profitability of an identifiable business unit or product; (11) maintenance or improvement of profit margins; (12) stock price; (13) market share; (14) revenue or sales; (15) costs; (16) cash flow; (17) working capital; (18) return on assets; (19) assets under management; and (20) total return. The foregoing criteria may relate to us, one or more of our subsidiaries or one or more of our divisions or units, or any combination of the foregoing, and may be applied on an absolute basis and/or be relative to one or more peer group companies or indices, or any combination thereof, all as the Compensation Committee shall determine. The performance measures and objectives established by the Compensation Committee may be different for different fiscal years and different objectives may be applicable to different officers and employees.
As soon as practicable following the applicable performance period, the Compensation Committee will determine (1) whether and to what extent any of the performance objectives established for such performance period have been satisfied, and (2) for each participant employed as of the last day of the performance period for which the bonus is payable, the actual annual incentive performance bonus to which such participant shall be entitled, taking into consideration the extent to which the performance objectives have been met and such other factors as the Compensation Committee may deem appropriate.
Annual Limitation on Bonus Payments to Any Individual.No participant may receive a bonus under the Amended and Restated Annual Incentive Plan, with respect to any fiscal year, in excess of $5,000,000. The proposed amendment would change this limit to $10,000,000. The Compensation Committee has absolute discretion to reduce or eliminate the amount otherwise payable to any participant under the Amended and Restated Annual Incentive Plan and to establish rules or procedures that have the effect of limiting the amount payable to each participant to an amount that is less than the maximum amount otherwise authorized as that participant’s target incentive bonus.
Change in Control. If there is a change in control (as defined in the Amended and Restated Annual Incentive Plan), our Board of Directors, as constituted immediately prior to the change in control, shall determine in its discretion whether the performance criteria have been met or will be deemed to have been met for the year in which the change in control occurs.
Termination of Employment. If a participant dies or becomes disabled prior to the last day of a performance period, the participant may receive an annual bonus equal to the bonus otherwise payable to the participant based upon actual company performance for the applicable performance period or, if determined by the Compensation Committee, based upon achieving targeted performance objectives, pro-rated for the days of employment during the performance period.
Payment of Awards. Payment of any bonus amount is made to participants as soon as practicable after the Compensation Committee certifies that one or more of the applicable objectives has been attained, or, where the Compensation Committee will reduce, eliminate or limit the bonus, as described above, the Compensation Committee determines the amount of any such reduction.
Amendment and Termination of Plan. Our Board of Directors or the Compensation Committee may at any time amend, suspend, discontinue or terminate the Amended and Restated Annual Incentive Plan, subject to shareholder approval if such approval is necessary to maintain the Amended and Restated Annual Incentive Plan in compliance with Section 162(m) of the Internal Revenue Code or any other applicable law or regulation. Unless earlier terminated, the Amended and Restated Annual Incentive Plan will expire on June 7, 2014.
New Plan Benefits Under the Amended and Restated Annual Incentive Plan. Because future awards under the Amended and Restated Annual Incentive Plan will be granted at the discretion of the Compensation Committee, the type, number, recipients, and other terms of such awards cannot be determined at this time.
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ITEM 4:2:
RATIFICATION OF THE APPOINTMENT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
At its meeting on February 27, 2008,March 11, 2010, the Board of Directors, upon the recommendation of its Audit Committee, appointed Deloitte & Touche LLP to serve as our independent registered public accounting firm for the current fiscal year ending December 31, 2008.2010. Representatives of the firm of Deloitte & Touche LLP are expected to be present at theour Annual Meeting and will have an opportunity to make a statement if they so desire and will be available to respond to appropriate questions.
Recommendation of the Board
The Board of Directors recommends a vote “FOR” the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the current fiscal year ending December 31, 2008.2010.
Fees IncurredRatification by Cohen & Steers forthe shareholders of the selection of the independent registered public accounting firm is not required, but the Board of Directors believes that it is desirable to submit this matter to the shareholders. If the selection of Deloitte & Touche LLP is not approved at the meeting, the Audit Committee will investigate the reason for the rejection and reconsider the appointment.
Principal Accounting Fees and Services
Aggregate fees billed to us for the fiscal years ended December 31, 2007 and 2006professional services provided by our independent registered public accounting firm, Deloitte & Touche LLP and its affiliates, for the fiscal years ended December 31, 2009 and 2008 are set forth below.
2007 | 2006 | 2009 | 2008 | |||||||||
Audit Fees(a) | $ | 746,450 | $ | 685,000 | $ | 756,300 | $ | 677,500 | ||||
Audit Related Fees | — | — | 90,000 | — | ||||||||
Tax Fees | — | — | 23,524 | 19,051 | ||||||||
All Other Fees | 3,000 | 20,408 | 2,168 | 19,073 | ||||||||
Total | $ | 749,450 | $ | 705,408 | $ | 871,992 | $ | 715,624 | ||||
(a) | Fees for audit services |
· | Audit of our annual consolidated financial statements. |
· | Audit of our internal controls under Section 404 of the Sarbanes-Oxley Act of 2002. |
· | Reviews of our quarterly consolidated financial statements. |
· | Audits of our regulated subsidiaries. |
· | Consultation on accounting and financial reporting standards arising during the course of the audit or review. |
· | Review of annual Form 10-K and interim |
· | Review and required procedures related to SEC filings. |
· | Attendance at Audit Committee meetings at which matters relating to the audit or review were discussed. |
(b) | Fees for services related to the examination of the company’s investment management and administrative services for institutional accounts. |
(c) | Fees for services related to various consultations regarding tax compliance matters. |
(d) | All |
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Audit Committee Pre-Approval Policy
In accordance with the Cohen & Steers Audit Committee Pre-Approval Policy (the “Pre-Approval Policy”), all audit and permitted non-audit services during fiscal 20062009 and 20072008 performed for us by our independent registered public accounting firm were pre-approved by the Audit Committee, which concluded that the provision of such services by Deloitte & Touche was compatible with the maintenance of that firm’s independence in the conduct of its auditing functions.
The responsibility for pre-approval of audit and permitted non-audit services includes pre-approval of the fees for such services (even though the pre-approval of fees is not specifically required by the SEC rules) and the other terms of the engagement.
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Periodically, and generally no later than at its first meeting of each fiscal year, the Audit Committee reviews and pre-approves all audit, audit-related, tax and all other services that we expect to be performed by our independent registered public accounting firm for us. The term of the pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period.
In the intervals between the scheduled meetings of the Audit Committee, the Audit Committee delegates pre-approval authority under the Pre-Approval Policy to the Chairman of the Audit Committee. The Chairman must report any pre-approval decisions under the Policy to the Audit Committee at its next scheduled meeting.
REQUIREMENTS, INCLUDING DEADLINES, FOR SUBMISSION OF
PROXY PROPOSALS, NOMINATION OF DIRECTORS AND OTHER BUSINESS OF SHAREHOLDERS
In accordance with the rules of the SEC, to be considered for inclusion in our Proxy Statement and form of proxy for our 2009 Annual Meeting2011 annual meeting of Shareholders,shareholders, a shareholder proposal must be received by us at our principal executive offices at 280 Park Avenue, New York, New York 10017 by December 4, 2008,November 23, 2010, pursuant to the requirements of Rule 14a-8 under the Exchange Act. The proposal should be sent to the attention of our Corporate Secretary.
In addition, our Bylaws set forth certain advance notice procedures to be followed by shareholders who wish to bring business before an annual meeting of shareholders or nominate candidates for election to the Board of Directors at an annual meeting of shareholders. Such procedures require that the shareholder give timely written notice to our Corporate Secretary. To be timely, such notice must be delivered to the principal executive offices of Cohen & Steers not less than 90 days nor more than 120 days prior to the first anniversary of the preceding year’s annual meeting, provided, that in the event that the date of the annual meeting is more than 20 days before or more than 70 days after such anniversary date, notice by the shareholder must be delivered not earlier than the 120th day prior to and not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made.
OTHER MATTERS
The Board of Directors knows of no other business to be presented at the meeting. If, however, any other business should properly come before the meeting, or any adjournment thereof, it is intended that the proxy will be voted with respect thereto in accordance with the best judgment of the persons named in the proxy.
By Order of the Board of Directors, |
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Francis C. Poli Corporate Secretary |
4039
Appendix A
AMENDED AND RESTATED
COHEN & STEERS, INC.
2004 STOCK INCENTIVE PLAN
1. PurposeImportant Notice Regarding the Availability of Proxy Materials for the PlanAnnual Meeting:
The purpose of the Plan is to aid the CompanyNotice and its Affiliates in recruitingProxy Statement and retaining key employees, directors or consultants of outstanding ability and to motivate such employees, directors or consultants to exert their best efforts on behalf of the Company and its Affiliates by providing incentives through the granting of Awards. The Company expects that it will benefit from the added interest which such key employees, directors or consultants will have in the welfare of the Company as a result of their proprietary interest in the Company’s success.Annual Report are available at www.proxyvote.com.
2. Definitions
The following capitalized terms used in the Plan have the respective meanings set forth in this Section:
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - | ||
M20325-P88302 |
PROXY SOLICITED BY THE BOARD OF DIRECTORS The undersigned appoints Francis C. Poli and Salvatore Rappa, and each of them, as proxies, each with full power of substitution, and authorizes them to represent and to vote, as designated on the |
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A-2
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3. Shares Subject to the Plan
The total number of Shares which may be issued under the Plan is 14,000,000. The maximum number of Shares for which Options and Stock Appreciation Rights may be granted during a calendar year to any Participant shall be 1,000,000. The Shares may consist, in whole or in part, of unissued Shares or treasury Shares. The issuance of Shares or the payment of cash upon the exercise of an Award or in consideration of the cancellation or termination of an Award shall reduce the total number of Shares available under the Plan, as applicable. Shares which are subject to Awards which terminate or lapse without the payment of consideration may be granted again under the Plan.
4. Administration
The Plan shall be administered by the Committee, which may delegate its duties and powers in whole or in part to any subcommittee thereof consisting solely of at least two individuals who are intended to qualify as
A-3
“Non-Employee Directors” within the meaning of Rule 16b-3 under the Act (or any successor rule thereto) and “outside directors” within the meaning of Section 162(m) of the Code (or any successor section thereto), to the extent Rule 16b-3 under the Act and Section 162(m) of the Code, respectively, are applicable to the Company and the Plan;provided,however, that the Board may, in its sole discretion, take any action designated to the Committee under this Plan as it may deem necessary. The Board may delegate to any committee of the Board, which committee may include one or more members of the Board who are also officers (including any Co-Chief Executive Officer) of the Company (a “Subcommittee”), the authority to grant Awards under the Plan to Participants who are neither directors of the Company nor “officers” of the Company within the meaning of Section 16 of the Securities Exchange Act of 1934. Subject to the immediately preceding sentence, for purposes of this Plan, wherever the term “Committee” is used, it shall be deemed to also refer to the Subcommittee as appropriate. The Committee may grant Awards under this Plan only to Participants;provided that Awards may also, in the discretion of the Committee, be made under the Plan in assumption of, or in substitution for, outstanding awards previously granted by the Company or its Affiliates or a company acquired by the Company or with which the Company combines. The number of Shares underlying such substitute awards shall be counted against the aggregate number of Shares available for Awards under the Plan. The Committee is authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable. Any decision of the Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or successors). The Committee shall have the full power and authority to establish the terms and conditions of any Award consistent with the provisions of the Plan and to waive any such terms and conditions at any time (including, without limitation, accelerating or waiving any vesting conditions). The Committee shall require payment of any amount it may determine to be necessary to withhold for federal, state, local or other taxes as a result of the exercise, grant or vesting of an Award. Unless the Committee specifies otherwise, the Participant may elect to pay a portion or all of such withholding taxes by (a) delivery in Shares or (b) having Shares withheld by the Company from any Shares that would have otherwise been received by the Participant.
5. Limitations
No Award may be granted under the Plan after the tenth anniversary of the Effective Date, but Awards theretofore granted may extend beyond that date.
6. Terms and Conditions of Options
Options granted under the Plan shall be, as determined by the Committee, nonqualified stock options or ISOs for federal income tax purposes, as evidenced by the related Award agreements, and shall be subject to the foregoing and the following terms and conditions and to such other terms and conditions, not inconsistent therewith, as the Committee shall determine:
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A-4
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7. Terms and Conditions of Stock Appreciation Rights
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A-5
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8. Other Stock-Based Awards
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A-6
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9. Adjustments Upon Certain Events
Notwithstanding any other provisions in the Plan to the contrary, the following provisions shall apply to all Awards granted under the Plan:
A-7
10. No Right to Employment or Awards
The granting of an Award under the Plan shall impose no obligation on the Company or any Affiliate to continue the Employment of a Participant and shall not lessen or affect the Company’s or Affiliate’s right to terminate the Employment of such Participant. No Participant or other Person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants, or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations with respect thereto need not be the same with respect to each Participant (whether or not such Participants are similarly situated).
11. Successors and Assigns
The Plan shall be binding on all successors and assigns of the Company and a Participant, including without limitation, the estate of such Participant and the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors.
12. Nontransferability of Awards
Unless otherwise determined by the Committee, an Award shall not be transferable or assignable by the Participant otherwise than by will or by the laws of descent and distribution. An Award exercisable after the death of a Participant may be exercised by the legatees, personal representatives or distributees of the Participant.
13. Amendments or Termination
The Board may amend, alter or discontinue the Plan, but no amendment, alteration or discontinuation shall be made, (a) without the approval of the shareholders of the Company, if such action would (except as is provided in Section 9 of the Plan), increase the total number of Shares reserved for the purposes of the Plan or change the maximum number of Shares for which Awards may be granted to any Participant or (b) without the consent of a Participant, if such action would diminish any of the rights of the Participant under any Award theretofore granted to such Participant under the Plan;provided,however, that the Committee may amend the Plan in such manner as it deems necessary to permit the granting of Awards meeting, the requirements of the Code or other applicable laws.
14. International Participants
With respect to Participants who reside or work outside the United States of America and, to the extent the Company and the Plan are subject to Section 162(m) of the Code, who are not (and who are not expected to be) “covered employees” within the meaning of Section 162(m) of the Code, the Committee may, in its sole discretion, amend the terms of the Plan or Awards with respect to such Participants in order to conform such terms with the requirements of local law.
15. Choice of Law
The Plan shall be governed by and construed in accordance with the laws of the State of New York without regard to conflicts of laws.
16. Effectiveness of the Plan
The Plan shall be effective as of the Effective Date, subject to the approval of the shareholders of the Company.
A-8
Appendix B
AMENDED AND RESTATED
COHEN & STEERS, INC.
2004 ANNUAL INCENTIVE PLAN
1. Purpose of the Plan
The purpose of the Plan is to enable the Company and its Affiliates to attract, retain, motivate and reward executive officers and key employees by providing them with the opportunity to earn competitive compensation directly linked to the Company’s performance.
2. Definitions
The following capitalized terms used in the Plan have the respective meanings set forth in this Section:
3. Administration
The Plan shall be administered and interpreted by the Committee;provided,however, that the Board may, in its sole discretion, take any action designated to the Committee under this Plan as it may deem necessary;provided that, to the extent Section 162(m) of the Code is applicable to the Company and the Plan, in no event shall the Plan be interpreted in a manner which would cause any award intended to be qualified as performance-based compensation under Section 162(m) of the Code to fail to so qualify. The Committee shall establish the performance objectives for any Performance Period in accordance with Section 4 and certify whether and to what extent such performance objectives have been obtained. Any determination made by the Committee under the Plan shall be final and conclusive. The Committee may employ such legal counsel, consultants and agents (including counsel or agents who are employees of the Company or an Affiliate) as it may deem desirable for the administration of the Plan and may rely upon any opinion received from any such counsel or consultant or agent and any computation received from such consultant or agent. All expenses incurred in the administration of the Plan, including, without limitation, for the engagement of any counsel, consultant or agent, shall be paid by the Company. No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation, construction or determination made in connection with the Plan other than as a result of such individual’s willful misconduct. The Committee may delegate its authority under this Plan;provided that, to the extent Section 162(m) of the Code is applicable to the Company and the Plan, the Committee shall in no event delegate its authority with respect to the compensation of the Chief Executive Officer of the Company, the four most highly compensated executive officers (as determined under Section 162(m) of the Code and regulations thereunder) of the Company and any other individual whose compensation the Board or Committee reasonably believes may become subject to Section 162(m) of the Code.
B-2
4. Bonuses
B-3
5. Payment
6. General Provisions
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B-4
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B-5
COHEN & STEERS, INC.
PROXY
SOLICITED BY THE BOARD OF DIRECTORS
The undersigned appoints Francis C. Poli and Salvatore Rappa, and each of them, as proxies, each with full power of substitution, and authorizes them to represent and to vote, as designated on the reverse side of this form, all shares of common stock of Cohen & Steers, Inc. held of record by the undersigned as of March 18, 2008, at the 2008 Annual Meeting of Stockholders to be held on May 9, 2008, beginning at 9:00 a.m., local time, at Cohen & Steers corporate headquarters located at 280 Park Avenue, New York, New York and in their discretion, upon any matter that may properly come before the meeting or any adjournment of the meeting, in accordance with their best judgment.
their best judgment. If no other indication is made on the reverse side of this form, the proxies shall vote FOR all nominees listed in Item 1, FOR Item 2, FOR Item 3, and FOR Item 4.
This proxy may be revoked at any time prior to the time voting is declared closed by giving the Corporate Secretary of Cohen & Steers written notice of revocation or a subsequently dated proxy, or by casting a ballot at the meeting.
(This card is continued on the reverse side. Please sign on the reverse side and return promptly in the enclosed envelope.)
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Ù FOLD AND DETACH HERE Ù
COHEN & STEERS, INC.
2008 ANNUAL MEETING OF STOCKHOLDERS
Friday, May 9, 2008
9:00 A.M., Local Time
COHEN & STEERS, INC.
280 PARK AVENUE
NEW YORK, NEW YORK 10017
Important Notice Regarding Internet Availability of Proxy Materials for the Annual Meeting
The proxy materials for the Annual Meeting, including the 2007 Annual Report and Proxy
Statement, are available over the Internet by accessing the “Corporate Info” section of the
company’s Web site atwww.cohenandsteers.com. Other information on the company’s
Web site does not constitute a part of the company’s proxy materials.
This proxy may be revoked at any time prior to the time voting is declared closed by giving the Corporate Secretary of Cohen & Steers written notice of revocation or a subsequently dated proxy, or by casting a ballot at the meeting. | ||||||
AddressChanges/Comments: | ||||||
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Changes/Comments above, please mark corresponding box on the reverse side.) | ||||||
Continued and to be signed on reverse side | ||||||
280 PARK AVENUE NEW YORK, NY 10017 | VOTE BY INTERNET -www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. | |
ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS If you would like to reduce the costs incurred by our company 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 up until 11:59 p.m. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions. | ||
VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. |
All shares will be voted as instructed below. In the absence of instructions, all shares will be voted FOR all nominees listed in Item 1, FOR Item 2, FOR Item 3, and FOR Item 4.TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:
M20324-P88302 KEEP THIS PORTION FOR YOUR RECORDS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - | ||
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. | DETACH AND RETURN THIS PORTION ONLY |
COHEN & STEERS, INC. | ||||||||||||||||||||||
The Board of Directors recommends you vote FOR the following proposals: | ||||||||||||||||||||||
1. | Election of Directors | |||||||||||||||||||||
Nominees:
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For | Against | Abstain | ||||||||||||||||||
1a. Martin Cohen | ¨ |
IMPORTANT: PLEASE SIGN AS NAME APPEARS HEREON. JOINT OWNERS SHOULD EACH SIGN. IF ACTING AS ATTORNEY, EXECUTOR, TRUSTEE, OR IN OTHER REPRESENTATIVE CAPACITY, PLEASE SIGN NAME AND TITLE.
For | Against | Abstain | |||||
WE ENCOURAGE YOU TO TAKE ADVANTAGE OF INTERNET OR TELEPHONE VOTING,
BOTH ARE AVAILABLE 24 HOURS A DAY, 7 DAYS A WEEK.
Internet and telephone voting is available through 11:59 PM Eastern Time
the day prior to annual meeting day.
Your Internet or telephone vote authorizes the named proxies to vote your shares in the same manner
as if you marked, signed and returned your proxy card.
1b. Robert H. Steers | ¨ | ¨ | 2. Ratification of Deloitte & Touche LLP as Our Independent Registered Public Accounting Firm. | ¨ | ¨ | ¨ | ||||||||||||||||
1c. Richard E. Bruce | ¨ | ¨ | ¨ | |||||||||||||||||||
1d. Peter L. Rhein | ¨ | ¨ | ¨ | |||||||||||||||||||
1e. Richard P. Simon | ¨ | ¨ | ¨ | |||||||||||||||||||
1f. Edmond D. Villani | ¨ | ¨ | ¨ | |||||||||||||||||||
For address changes and/or comments, please check this box and write them on the back where indicated. |
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Please sign exactly as your |
If you vote your proxy by Internet or by telephone, you do NOT need to mail back your proxy card.
To vote by mail, mark, sign and date your proxy card and return it in the enclosed postage-paid envelope.
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Signature [PLEASE SIGN WITHIN BOX] | Date | Signature (Joint Owners) | Date |