SCHEDULE 14A
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the registrant [X]
Filed by a party other than the registrant [ ]
Check the appropriate box:
[ ] Preliminary proxy statement. [ ] Confidential, for use of the
Commission only (as permitted by
Rule 14a-6(e)(2)).
[ ] Definitive proxy statement.
[X] Definitive additional materials.
[ ] Soliciting material pursuant to Section 240.14a-12
CULLEN FROST BANKERS, INC.
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(Name of Registrant as Specified in Its Charter)
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(Name of Person(s) Filing Proxy Statement if Other Than the Registrant)
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[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.
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pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
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[ ] Fee paid previously with preliminary materials.
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Set forth below is a transcript of an e-mail message sent to employees
of Cullen/Frost Bankers, Inc. ("Cullen/Frost") on April 29, 2003. Also set forth
below is a revised version of the Summary Compensation Table that appeared on
page 13 of Cullen/Frost's Definitive Proxy Statement on Schedule 14A, which was
filed with the Securities and Exchange Commission on April 16, 2003. The revised
version of the table corrects an inadvertent and erroneous overstatement of the
2002 salaries of Messrs. T.C. Frost, Phillip D. Green and Patrick B. Frost.
MESSAGE TO EMPLOYEES OF CULLEN/FROST
Through an inadvertent administrative error, the Summary Compensation
Table on page 13 of the CFR Proxy Statement incorrectly overstated the 2002
salaries for T.C. Frost, Phil Green and Pat Frost. The 2002 salaries listed
should have been the same as the 2001 salaries, as there was no increase. This
correction is being filed with the Securities and Exchange Commission. If you
have any questions, please feel free to contact me.
Stan McCormick, extension 54310
Corporate Counsel and Secretary to the Board
SUMMARY COMPENSATION TABLE
The table below gives information on compensation for the Senior
Chairman of Cullen/Frost and the other three most highly compensated executive
officers (collectively, the "named executive officers").
Annual Compensation Long-Term Compensation
------------------- --------------------------------------------
Other Annual Restricted Stock Options All Other
Name and Principal Position Year Salary Bonus Compensation(1) Stock(2) (# of shares) Compensation(3)
----------- ------------ ------------ --------------- ------------ ------------- ---------------
T. C. Frost 2002 $ 30,000 $ -- $ 42,716 $ -- 4,000 $ 64,155
----------- ------------ ------------ ------------ ------------ ------------ ------------
Senior Chairman 2001 $ 30,000 $ -- $ 20,810 $ -- 8,000 $ 31,372
----------- ------------ ------------ ------------ ------------ ------------ ------------
Cullen/Frost 2000 $ 30,000 $ -- $ 27,902 $ -- 8,000 $ 32,105
----------- ------------ ------------ ------------ ------------ ------------ ------------
Richard W. Evans, Jr 2002 $ 550,000 $ 440,000 $ 26,737 $ 728,438 21,800 $ 47,552
----------- ------------ ------------ ------------ ------------ ------------ ------------
Chairman and CEO 2001 $ 550,000 $ -- $ 27,920 $ -- 175,000 $ 48,094
----------- ------------ ------------ ------------ ------------ ------------ ------------
Cullen/Frost 2000 $ 550,000 $ 400,000 $ 23,064 $ -- 150,000 $ 44,920
----------- ------------ ------------ ------------ ------------ ------------ ------------
Phillip D. Green 2002 $ 275,000 $ 150,000 $ 1,979 $ 208,125 6,200 $ 6,895
----------- ------------ ------------ ------------ ------------ ------------ ------------
Chief Financial Officer 2001 $ 275,000 $ -- $ 1,332 $ -- 50,000 $ 4,856
----------- ------------ ------------ ------------ ------------ ------------ ------------
Cullen/Frost 2000 $ 255,000 $ 125,000 $ 2,107 $ -- 45,000 $ 6,679
----------- ------------ ------------ ------------ ------------ ------------ ------------
Patrick B. Frost 2002 $ 275,000 $ 138,000 $ 1,979 $ 166,500 5,000 $ 6,100
----------- ------------ ------------ ------------ ------------ ------------ ------------
President 2001 $ 275,000 $ -- $ 2,364 $ -- 40,000 $ 6,900
----------- ------------ ------------ ------------ ------------ ------------ ------------
The Frost National Bank 2000 $ 260,000 $ 91,000 $ 2,084 $ -- 40,000 $ 5,964
----------- ------------ ------------ ------------ ------------ ------------ ------------
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(1) Represents payments to compensate the named executive officer for
income taxes on elective deferrals and Company matching contributions
to Cullen/Frost's 1991 Thrift Stock Purchase Plan (the "1991 Thrift
Plan"), which provides benefits comparable to the Company's 401(k)
Stock Purchase Plan for employees whose participation in the 401(k)
Plan is limited by IRS rules. Mr. T.C. Frost's values represent the
total reimbursement to him for taxes on life insurance premiums paid by
the Company. Mr. Evans' values include $12,693 to reimburse him for
taxes on life insurance premiums paid by the Company and a $6,000
automobile allowance.
(2) Represents the dollar value of restricted stock awards, based on the
closing market price of Company Common Stock on the grant date. The
number and value of the aggregate restricted stock holdings at December
31, 2002 of the named executive officers are as follows: Mr. T.C.
Frost, 0 shares; Mr. Evans 31,875 shares valued at $1,042,313; Mr.
Green 9,250 shares valued at $302,475; and Mr. P. Frost 8,000 shares
valued at $261,600. Aggregate market value is based on the closing
market price of Company Common Stock on December 31, 2002, which was
$32.70. Dividends are paid on the restricted shares at the same time
and at the same rate as dividends paid to shareholders of unrestricted
shares. Stock awarded in 1999 and 2002 vests at the end of four years
from the date of the award.
(3) Represents total and/or imputed income from certain insurance premiums
paid by Cullen/Frost and the Company's contributions to the 1991 Thrift
Plan. The amounts for insurance premiums and/or imputed income for 2002
were: Mr. T.C. Frost $64,155; Mr. Evans $25,192; Mr. Green $1,395; and
Mr. P. Frost $600. The Company's contribution to the 1991 Thrift Plan
for 2002 for these executives was: Mr. T.C. Frost $0; Mr. Evans
$22,360; Mr. Green $5,500; and Mr. P. Frost $5,500.