| Filed by the Registrant ☒ | | | Filed by a Party other than the Registrant ☐ | |
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ABM Industries Incorporated
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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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| Maryellen C. Herringer Chairman of the Board of Directors |
| | Scott Salmirs President and Chief Executive Officer |
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PROXY STATEMENT SUMMARY
This summary highlights information contained elsewhere in this proxy statement. You should read the entire proxy statement carefully before voting.
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Annual Meeting of Shareholders
•
Time and Date:
10:00 a.m. Eastern Time, March 9, 2016
•
Place:
Lotte New York Palace Hotel
455 Madison Avenue New York, New York 10022
•
Record Date:
January 13, 2016
•
Voting:
Shareholders
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| | |||||||||||||||
| |
Meeting Agenda
•
Election of three directors
•
Ratification of the selection of KPMG LLP as ABM’s independent registered public accounting firm for fiscal year 2016
•
Nonbinding advisory vote to approve executive compensation
•
Amendment of the 2004 Employee Stock Purchase Plan
•
Transaction of any other business that may properly come before the meeting
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| | |||||||||||||||
| | Voting Matters | | | |||||||||||||||
| |
Board Proposals |
| |
Board Vote
Recommendation |
| |
Page Reference
(for more detail) |
| | |||||||||
| | Election of Directors | | |
FOR EACH DIRECTOR NOMINEE
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| |
50
|
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| |
Ratification of the selection of KPMG LLP as our independent registered public accounting firm for fiscal year 2016
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| |
FOR
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| |
55
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| |
Advisory vote to approve executive compensation
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| |
FOR
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| |
56
|
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| | Amendment of the 2004 Employee Stock Purchase Plan | | |
FOR
|
| |
57
|
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| |
Board Nominees
The following table provides summary information about each director who is nominated for election.
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| | |||||||||||||||
| | Name | | |
Age
|
| |
Director Since
|
| |
Occupation
|
| |
Independent
|
| |
Committee Assignments
|
| |
| | Luke S. Helms | | |
72
|
| |
1995
|
| |
Managing Director, Sonata Capital Group
|
| |
✓
|
| |
Governance, Chair Audit
Compensation |
| |
| | Sudhakar Kesavan |
| |
61
|
| |
2012
|
| |
Chairman and Chief Executive Officer,
ICF International |
| |
✓
|
| |
Compensation, Chair
|
| |
| |
Lauralee E. Martin
|
| |
65
|
| |
2015
|
| |
Chief Executive Officer and President,
HCP, Inc. |
| |
✓
|
| |
Corporate Citizenship and Communications
|
| |
| |
BOARD OF DIRECTORS
|
| | ||||
| | Maryellen C. Herringer, Chair Linda Chavez J. Philip Ferguson Anthony G. Fernandes Thomas M. Gartland Luke S. Helms |
| | | Sudhakar Kesavan Lauralee E. Martin Scott Salmirs William W. Steele Winifred Markus Webb |
| |
| | | | | | | | | | | | | | | | | |
Committee
|
| | |
Qualifications
|
| | ||||||||||||||||||||||||||||||||
| |
Name and Current Position
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| |
| |
Maryellen C. Herringer
Non-Executive Chairman of the Board |
| | |
72
|
| | |
1993
|
| | |
YES
|
| | | | | | |
•
|
| | | | | | | | | | |
•
|
| | | | | | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| |
| |
Linda Chavez
President, Becoming American Institute |
| | |
68
|
| | |
1997
|
| | |
YES
|
| | | | | | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | | | | | |
•
|
| | |
•
|
| | |
•
|
| | | | | |
| |
J. Philip Ferguson
Former Vice Chairman, University of Texas Investment Management Company |
| | |
70
|
| | |
2009
|
| | |
YES
|
| | |
•
|
| | | | | | |
•
|
| | |
•
|
| | |
•
|
| | | | | | |
•
|
| | |
•
|
| | |
•
|
| | | | | |
| |
Anthony G. Fernandes
Former Chairman, Chief Executive Officer and President of Philip Services Corporation |
| | |
70
|
| | |
2007
|
| | |
YES
|
| | |
Chair
|
| | | | | | | | | | |
•
|
| | |
•
|
| | | | | | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| |
| |
Thomas M. Gartland
Former President, North America of Avis Budget Group, Inc. |
| | |
58
|
| | |
2015
|
| | |
YES
|
| | |
•
|
| | | | | | | | | | | | | | |
•
|
| | | | | | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| |
| |
Luke S. Helms
Managing Partner, Sonata Capital Group |
| | |
72
|
| | |
1995
|
| | |
YES
|
| | |
•
|
| | |
•
|
| | |
Chair
|
| | | | | | |
•
|
| | | | | | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| |
| |
Sudhakar Kesavan
Chairman and Chief Executive Officer, ICF International |
| | |
61
|
| | |
2012
|
| | |
YES
|
| | | | | | |
Chair
|
| | | | | | | | | | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| |
| |
Lauralee E. Martin
Chief Executive Officer and President, HCP, Inc. |
| | |
65
|
| | |
2015
|
| | |
YES
|
| | | | | | | | | | | | | | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| |
| |
Scott Salmirs
President and Chief Executive Officer, ABM Industries Incorporated |
| | |
53
|
| | |
2015
|
| | |
NO
|
| | | | | | | | | | | | | | | | | | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| |
| |
William W. Steele
Former President and Chief Executive Officer, ABM Industries Incorporated |
| | |
79
|
| | |
1998
|
| | |
YES
|
| | | | | | | | | | | | | | |
Chair
|
| | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| | | | | |
| |
Winifred Markus Webb
Chief Executive Officer, Kestrel Corporate Advisors |
| | |
57
|
| | |
2014
|
| | |
YES
|
| | |
•
|
| | | | | | | | | | | | | | |
•
|
| | | | | | |
•
|
| | |
•
|
| | |
•
|
| | |
•
|
| |
|
Anthony G. Fernandes, Chair
J. Philip Ferguson Thomas M. Gartland Luke S. Helms Winifred Markus Webb |
| |
Key Oversight Responsibilities
•
Independent auditor, including audit/nonaudit services provided
•
Scope & results of the independent auditor’s audit
•
Financial reporting activities & accounting standards/principles used
•
Internal audit functions
•
Disclosure controls and internal controls
“In 2015, our principal focus was on risks related to our insurance and safety programs.”
The Audit Committee met nine times in 2015. The Board of Directors has determined that each member of the Audit Committee is financially literate and that each qualifies as an “audit committee financial expert” under the definition promulgated by the Securities and Exchange Commission.
|
|
|
Sudhakar Kesavan, Chair
Linda Chavez Luke S. Helms Maryellen C. Herringer |
| |
Key Oversight Responsibilities
•
CEO compensation and evaluation
•
Executive incentive compensation
•
Equity plan and awards
•
Review of compensation structure
•
Executive employment agreements
“This year we focused on arrangements relating to management succession and continued alignment of incentive compensation with corporate strategy.”
The Compensation Committee met nine times in 2015.
|
|
|
Luke S. Helms, Chair
Linda Chavez J. Philip Ferguson |
| |
Key Oversight Responsibilities
•
Director recruitment
•
Corporate governance
•
Board committee structure & membership
•
Director compensation
•
Succession planning
“CEO succession, Chairman succession, director recruitment and Board composition were key priorities in 2015.”
The Governance Committee met six times in 2015.
|
|
|
William W. Steele, Chair
Linda Chavez J. Philip Ferguson Anthony G. Fernandes Lauralee E. Martin |
| |
Key Oversight Responsibilities
•
Corporate philanthropy
•
Public affairs and government relations
•
Crisis management planning
“Sustainability and corporate philanthropic outreach potential were areas of focus in 2015.”
The Corporate Citizenship and Communications Committee met four times in 2015.
|
|
| |
Compensation Element
|
| | |
2015 Compensation Program
|
| |
| | Annual Board Cash Retainer | | | | $175,000 for Chairman of the Board; $70,000 for other non-employee directors |
| |
| | Annual Board Equity Retainer | | | | $175,000 for Chairman of the Board; $110,000 for other non-employee directors |
| |
| | Board and Committee Attendance Fees | | | | None | | |
| | Annual Chair Fees | | | | $15,000 for Audit Chair; $10,000 for Compensation Chair; $7,500 for Governance Chair; $5,000 for Corporate Citizenship and Communications Chair |
| |
| |
Annual Committee Member Retainer*
*The Chairman of the Board does not receive a separate retainer for Committee memberships
|
| | | $20,000 for Audit members; $12,500 for Compensation members; $7,500 for Governance members; $5,000 for Corporate Citizenship and Communications members |
| |
| |
Name of Director
|
| | |
Fees
Earned or Paid in Cash(1) ($) |
| | |
Stock
Awards(2) ($) |
| | |
All Other
Compensation(3) ($) |
| | |
Total
($) |
| | ||||||||||||
| | Linda Chavez | | | | | | 95,000 | | | | | | | 116,626 | | | | | | | 10,607 | | | | | | | 222,233 | | | |
| | J. Philip Ferguson | | | | | | 102,500 | | | | | | | 116,626 | | | | | | | 5,357 | | | | | | | 224,483 | | | |
| | Anthony G. Fernandes | | | | | | 110,000 | | | | | | | 116,626 | | | | | | | 722 | | | | | | | 227,348 | | | |
| | Thomas M. Gartland(4) | | | | | | 1,451 | | | | | | | 0 | | | | | | | 0 | | | | | | | 1,451 | | | |
| | Luke S. Helms | | | | | | 117,500 | | | | | | | 116,626 | | | | | | | 5,357 | | | | | | | 239,483 | | | |
| | Maryellen C. Herringer | | | | | | 172,625 | | | | | | | 181,621 | | | | | | | 4,635 | | | | | | | 358,881 | | | |
| | Sudhakar Kesavan | | | | | | 92,500 | | | | | | | 116,626 | | | | | | | 3,992 | | | | | | | 213,118 | | | |
| | Lauralee E. Martin(4) | | | | | | 1,209 | | | | | | | 0 | | | | | | | 0 | | | | | | | 1,209 | | | |
| | William W. Steele | | | | | | 96,000 | | | | | | | 116,626 | | | | | | | 5,357 | | | | | | | 217,983 | | | |
| | Winifred Markus Webb | | | | | | 80,806 | | | | | | | 128,323 | | | | | | | 0 | | | | | | | 209,129 | | | |
| |
2015 COMPENSATION COMPARATOR GROUP
|
| | ||||||
| | ArcBest Corporation Brinker International, Inc. The Brink’s Company C. H. Robinson Worldwide, Inc. Cintas Corporation Convergys Corporation Con-Way Inc. |
| | Corrections Corporation of America Emcor Group, Inc. Healthcare Services Group, Inc. Insperity, Inc. Iron Mountain Inc. J.B. Hunt Transport Services, Inc. Kelly Services, Inc. |
| | Rent-A-Center Republic Services, Inc. Robert Half International Inc. Rollins Inc. SP Plus Corporation URS Corporation Werner Enterprises, Inc. |
| |
| |
Pay Element
|
| | |
Description and Purpose
|
| | |
Link to Business and Strategy
|
| |
| | Base salary — payable in cash (see page 18) |
| | |
•
Designed to recognize
individual performance, leadership skills, responsibility and time in role
•
Annual review and
adjustment, if appropriate
|
| | |
•
Competitive base pay to help
attract and retain strong executive talent
•
Increases are not automatic or
guaranteed
|
| |
| | Annual short-term incentives — payable in cash (see page 18) |
| | |
•
Variable compensation
measured by performance against annually established financial and individual performance targets
•
Designed to reward annual
performance related to key financial and operational measures
|
| | |
•
Design of short-term
incentives is evaluated annually for alignment with strategy
|
| |
| | Long-term incentives — structured as equity awards, settled in Company stock (see page 19) |
| | |
•
Variable compensation that
consists of a mix of performance-based and time-vested equity awards
•
Equity award mix and design
of performance metrics reviewed annually
|
| | |
•
Designed to link incentives to
long-term shareholder value
•
Performance-based equity
programs are evaluated annually for alignment with Company strategy
|
| |
| |
NAMED EXECUTIVE OFFICERS
|
| | ||||
| |
Current Officers
|
| | |
Former Officers
|
| |
| |
•
Scott Salmirs, President and Chief Executive Officer
•
D. Anthony Scaglione, Executive Vice President and Chief Financial Officer
•
James P. McClure, Executive Vice President
•
Sarah Hlavinka McConnell, Executive Vice President, General Counsel and Corporate Secretary
•
Dean A. Chin, Senior Vice President, Chief Accounting Officer and Corporate Controller
|
| | |
•
Henrik C. Slipsager, Former President and Chief Executive Officer
•
James S. Lusk, Former Executive Vice President and Chief Financial Officer
•
Tracy K. Price, Former Executive Vice President and business leader for Building & Energy Solutions and Corporate Sales and Marketing
|
| |
| |
NEO
|
| | |
2014 Annual
Base Salary |
| | |
2015 Annual
Base Salary |
| | ||||||
| | Scott Salmirs, President and CEO | | | | | $ | 499,898 | | | | | | $ | 760,000(1) | | | |
| |
D. Anthony Scaglione, Executive Vice President and CFO
|
| | | | $ | 315,143 | | | | | | $ | 425,000(1) | | | |
| |
James P. McClure, Executive
Vice President |
| | | | $ | 677,637 | | | | | | $ | 691,190 | | | |
| |
Sarah H. McConnell, Executive Vice President and General Counsel and Secretary
|
| | | | $ | 472,770 | | | | | | $ | 482,225 | | | |
| |
Dean A. Chin, Senior Vice President, Controller and
Chief Accounting Officer |
| | | | $ | 319,934 | | | | | | $ | 332,794 | | | |
| | | | | |
Results
|
| | |
Weight
|
| | |
Award
Funding ( %) |
| | |||
| | Organic Revenue Growth | | | |
|
| | | | | 20% | | | | |
|
| |
| | Adjusted EBITDA | | | |
|
| | | | | 60% | | | | |
|
| |
| | ROIC | | | |
|
| | | | | 20% | | | | |
|
| |
| |
Achievement
|
| | |
Award Funding
|
| |
| |
≥ 135%
|
| | |
200.0%
|
| |
| |
≥ 125%
|
| | |
150.0%
|
| |
| |
≥ 115%
|
| | |
125.0%
|
| |
| |
≥ 95% – 105%
|
| | |
100.0%
|
| |
| |
≥ 90%
|
| | |
85.0%
|
| |
| |
≥ 75%
|
| | |
50.0%
|
| |
| |
60%
|
| | |
40%
|
| | ||||||||||||||||||||||||||||||||||||||||||||
| |
Year
|
| | |
Operating
Cash Flow ($ millions) |
| | |
Adjusted
EBITDA ($ millions) |
| | |
Value Creation
($ millions) |
| | |
Weight
|
| | |
Adjusted
EBITDA Growth |
| | |
Award
Funding (%) |
| | |
Weight
|
| | ||||||||||||||||||||
| | | | | |
Results
|
| | |
Plan
|
| | |
Results
|
| | |
Plan
|
| | |
Results
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
1
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | | | | 20% | | | | | | | n/a | | | | | | | n/a | | | | | | | n/a | | | |
| |
2
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | | | | 20% | | | | | | | n/a | | | | | | | n/a | | | | | | | n/a | | | |
| |
3
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | | | | 20% | | | | | | | | | | | | | | | | | | | | | 40% | | | |
| |
Final
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Achievement
|
| | |
Award Funding
|
| |
| |
≥ 135%
|
| | |
200.0%
|
| |
| |
≥ 125%
|
| | |
150.0%
|
| |
| |
≥ 115%
|
| | |
125.0%
|
| |
| |
≥ 100%
|
| | |
100.0%
|
| |
| |
≥ 90%
|
| | |
85.0%
|
| |
| |
≥ 75%
|
| | |
50.0%
|
| |
| |
Income from Continuing Operations
|
| | |
Base Level
|
| | |
2015 Results
|
| | |
Achievement
|
| | |
Bonus
Funding |
| | ||||||
| | 2015 Budget (50%) | | | |
$83.1 million
|
| | |
$51.2 million*
|
| | | | | 61.6% | | | | | | | 0% | | | |
| | 2014 Actual (50%) | | | |
$69.5 million*
|
| | |
$51.2 million*
|
| | | | | 73.7% | | | | | | | 0% | | | |
| | TOTAL | | | | |
|
0%
|
| | |
| |
Achievement
|
| | |
Funding
|
| |
| |
≥ 125%
|
| | |
175.0%
|
| |
| |
≥ 120%
|
| | |
150.0%
|
| |
| |
≥ 100%
|
| | |
100.0%
|
| |
| |
≥ 80%
|
| | |
50.0%
|
| |
| |
< 80%
|
| | |
0%
|
| |
| |
Income from Operations
|
| | |
Base Level
|
| | |
2015 Results
|
| | |
Achievement
|
| | |
Bonus
Funding** |
| | ||||||
| | Onsite 2015 Budget | | | |
$233.9 million
|
| | |
$216.6 million*
|
| | | | | 92.6% | | | | | | | 81.5% | | | |
| | Onsite 2014 | | | |
$215.2 million
|
| | |
$216.6 million*
|
| | | | | 100.6% | | | | | | | 101.5% | | | |
| | Northeast 2015 Budget | | | |
$44.7 million
|
| | |
$52.6 million*
|
| | | | | 117.7% | | | | | | | 144.3% | | | |
| | Northeast 2014 | | | |
$40.2 million
|
| | |
$52.6 million*
|
| | | | | 130.8% | | | | | | | 175.0% | | | |
| | | | | |
Company
(10%) |
| | |
Onsite
(10%) |
| | |
Northeast
(40%) |
| | |
Individual
(40%) |
| | |
Overall
Bonus Payout |
| | |||||||||||||||
| | Target bonus opportunity* | | | | | $ | 10,708 | | | | | | $ | 10,708 | | | | | | $ | 42,831 | | | | | | $ | 42,831 | | | | | | | | | | |
| | Funding** | | | | | | 0% | | | | | | | 91.5% | | | | | | | 159.7% | | | | | | | 150.0% | | | | | | | 133.0% | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 9,798 | | | | | | $ | 68,401 | | | | | | $ | 64,247 | | | | | | $ | 142,446 | | | |
| | | | | |
Financial
(70%) |
| | |
Individual
(30%) |
| | |
Overall
Bonus Payout |
| | |||||||||
| |
Target bonus opportunity*
|
| | | | $ | 308,560 | | | | | | $ | 132,240 | | | | | | | | | | |
| | Funding | | | | | | 0% | | | | | | | 133.0% | | | | | | | 39.9% | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 175,879 | | | | | | $ | 175,879 | | | |
| | | | | |
Company
(50%) |
| | |
Individual
(50%) |
| | |
Overall
Bonus Payout |
| | |||||||||
| |
Target bonus opportunity*
|
| | | | $ | 27,002 | | | | | | $ | 27,002 | | | | | | | | | | |
| | Funding | | | | | | 0% | | | | | | | 150.0% | | | | | | | | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 40,503 | | | | | | $ | 40,503 | | | |
| | | | | |
Company
(70%) |
| | |
Individual
(30%) |
| | |
Overall
Bonus Payout |
| | |||||||||
| |
Target bonus opportunity*
|
| | | | $ | 120,785 | | | | | | $ | 51,765 | | | | | | | | | | |
| | Funding | | | | | | 0% | | | | | | | 150.0% | | | | | | | | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 77,648 | | | | | | $ | 77,648 | | | |
| |
Income from Operations
|
| | |
Base Level
|
| | |
2015 Results
|
| | |
Achievement
|
| | |
Bonus
Funding |
| | ||||||
| | Onsite 2015 Budget (50%) | | | |
$233.9 million
|
| | |
$216.6 million
|
| | | | | 92.6% | | | | | | | 81.5% | | | |
| | Onsite 2014 Actual (50%) | | | |
$215.2 million
|
| | |
$216.6 million
|
| | | | | 100.6% | | | | | | | 101.5% | | | |
| | TOTAL | | | | |
|
91.5%
|
| | |
| | | | | |
Company
(50%) |
| | |
Onsite
(25%) |
| | |
Individual
(25%) |
| | |
Overall
Bonus Payout |
| | ||||||||||||
| | Target bonus opportunity | | | | | $ | 259,197 | | | | | | $ | 129,598 | | | | | | $ | 129,598 | | | | | | | | | | |
| | Funding | | | | | | 0% | | | | | | | 91.5% | | | | | | | 150.0% | | | | | | | | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 118,582 | | | | | | $ | 194,397 | | | | | | $ | 312,979 | | | |
| | | | | |
Company
(70%) |
| | |
Individual
(30%) |
| | |
Overall
Bonus Payout |
| | |||||||||
| |
Target bonus opportunity
|
| | | | $ | 202,535 | | | | | | $ | 86,801 | | | | | | | | | | |
| | Funding | | | | | | 0% | | | | | | | 150.0% | | | | | | | | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 130,202 | | | | | | $ | 130,202 | | | |
| | | | | |
Company
(50%) |
| | |
Individual
(50%) |
| | |
Overall
Bonus Payout |
| | |||||||||
| |
Target bonus opportunity
|
| | | | $ | 66,559 | | | | | | $ | 66,559 | | | | | | | | | | |
| | Funding | | | | | | 0% | | | | | | | 150.0% | | | | | | | | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 99,839 | | | | | | $ | 99,839 | | | |
| | | | | |
CEO Financial
Goals (70%) |
| | |
Individual
(30%) |
| | |
Overall
Bonus Payout |
| | |||||||||
| |
Target bonus opportunity*
|
| | | | $ | 262,542 | | | | | | $ | 112,518 | | | | | | | | | | |
| | Funding | | | | | | 0% | | | | | | | 100.0% | | | | | | | | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 112,518 | | | | | | $ | 112,518 | | | |
| | | | | |
Company
(70%) |
| | |
Individual
(30%) |
| | |
Overall
Bonus Payout |
| | |||||||||
| |
Target bonus opportunity*
|
| | | | $ | 191,028 | | | | | | $ | 81,869 | | | | | | | | | | |
| | Funding | | | | | | 0% | | | | | | | 100.0% | | | | | | | | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 81,869 | | | | | | $ | 81,869 | | | |
| |
Income from Operations
|
| | |
Base Level
|
| | |
2015 Results
|
| | |
Achievement
|
| | |
Bonus
Funding |
| | ||||||
| | BESG 2015 Budget (50%) | | | |
$26.7 million
|
| | |
$26.4 million
|
| | | | | 98.9% | | | | | | | 97.3% | | | |
| | BESG 2014 Actual (50%) | | | |
$23.1 million
|
| | |
$26.4 million
|
| | | | | 114.0% | | | | | | | 135.0% | | | |
| | TOTAL | | | | |
|
116.2%
|
| | |
| | | | | |
Company
(50%) |
| | |
BESG
(25%) |
| | |
Individual
(25%) |
| | |
Overall
Bonus Payout |
| | ||||||||||||
| | Target bonus opportunity | | | | | $ | 259,197 | | | | | | $ | 129,598 | | | | | | $ | 129,598 | | | | | | | | | | |
| | Funding | | | | | | 0% | | | | | | | 116.2% | | | | | | | 100.0% | | | | | | | | | | |
| | Payout | | | | | $ | 0 | | | | | | $ | 150,593 | | | | | | $ | 129,598 | | | | | | $ | 280,191 | | | |
| |
60%
|
| | |
40%
|
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |
Year
|
| | |
Operating
Cash Flow ($ millions) |
| | |
Adjusted
EBITDA ($ millions) |
| | |
Value
Creation(1) ($ millions) |
| | |
Value
Creation Achievement (%) |
| | |
Award
Funding(2) (%) |
| | |
Weight
|
| | |
Adjusted
EBITDA Growth (%) |
| | |
Award
Funding(2) (%) |
| | |
Weight
|
| | ||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | |
Plan
|
| | |
Results
|
| | |
Plan
|
| | |
Results
|
| | |
Plan
|
| | |
Results
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||
| | 2013 | | | | | | 141.9 | | | | | | | 135.3 | | | | | | | 206.2 | | | | | | | 205.9 | | | | | | | 290.9 | | | | | | | 282.8 | | | | | | | 97.2 | | | | | | | 95.8 | | | | | | | 20% | | | | | | | n/a | | | | | | | n/a | | | | | | | n/a | | | |
| | 2014 | | | | | | 134.9 | | | | | | | 120.7 | | | | | | | 216.5 | | | | | | | 216.7 | | | | | | | 186.4 | | | | | | | 174.7 | | | | | | | 93.7 | | | | | | | 90.6 | | | | | | | 20% | | | | | | | n/a | | | | | | | n/a | | | | | | | n/a | | | |
| | 2015 | | | | | | 133.9 | | | | | | | 145.3 | | | | | | | 227.3 | | | | | | | 221.6 | | | | | | | 187.9 | | | | | | | 169.8 | | | | | | | 90.4 | | | | | | | 85.6 | | | | | | | 20% | | | | | | | 97.5 | | | | | | | 96.3 | | | | | | | 40% | | | |
| | Final | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
92.9%
|
| | |
| |
60%
|
| | |
40%
|
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |
Year
|
| | |
Operating
Cash Flow ($ millions) |
| | |
Adjusted
EBITDA ($ millions) |
| | |
Value
Creation(1) ($ millions) |
| | |
Value
Creation Achievement (%) |
| | |
Award
Funding(2) (%) |
| | |
Weight
|
| | |
Adjusted
EBITDA Growth (%) |
| | |
Award
Funding(2) (%) |
| | |
Weight
|
| | ||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | |
Plan
|
| | |
Results
|
| | |
Plan
|
| | |
Results
|
| | |
Plan
|
| | |
Results
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||
| | 2014 | | | | | | 124.0 | | | | | | | 120.7 | | | | | | | 218.7 | | | | | | | 216.7 | | | | | | | 188.0 | | | | | | | 174.7 | | | | | | | 92.9 | | | | | | | 89.4 | | | | | | | 20% | | | | | | | n/a | | | | | | | n/a | | | | | | | n/a | | | |
| | 2015 | | | | | | 93.4 | | | | | | | 145.3 | | | | | | | 229.6 | | | | | | | 221.6 | | | | | | | 147.9 | | | | | | | 169.8 | | | | | | | 114.8 | | | | | | | 124.7 | | | | | | | 20% | | | | | | | n/a | | | | | | | n/a | | | | | | | n/a | | | |
| | 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20% | | | | | | | | | | | | | | | | | | | | | 40% | | | |
| | Final | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
60%
|
| | |
40%
|
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |
Year
|
| | |
Operating
Cash Flow ($ millions) |
| | |
Adjusted
EBITDA ($ millions) |
| | |
Value
Creation(1) ($ millions) |
| | |
Value
Creation Achievement (%) |
| | |
Award
Funding(2) (%) |
| | |
Weight
|
| | |
Adjusted
EBITDA Growth |
| | |
Award
Funding(2) (%) |
| | |
Weight
|
| | ||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | |
Plan
|
| | |
Results
|
| | |
Plan
|
| | |
Results
|
| | |
Plan
|
| | |
Results
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||
| | 2015 | | | | | | 118.4 | | | | | | | 145.3 | | | | | | | 236.0 | | | | | | | 221.6 | | | | | | | 214.9 | | | | | | | 169.8 | | | | | | | 79.0 | | | | | | | 59.3 | | | | | | | 20% | | | | | | | n/a | | | | | | | n/a | | | | | | | n/a | | | |
| | 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20% | | | | | | | n/a | | | | | | | n/a | | | | | | | n/a | | | |
| | 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20% | | | | | | | | | | | | | | | | | | | | | 40% | | | |
| | Final | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Value Creation
|
| | |
Award Funding
|
| |
| |
≥ 135%
|
| | |
200.0%
|
| |
| |
≥ 125%
|
| | |
150.0%
|
| |
| |
≥ 115%
|
| | |
125.0%
|
| |
| |
≥ 100%
|
| | |
100.0%
|
| |
| |
≥ 90%
|
| | |
85.0%
|
| |
| |
≥ 75%
|
| | |
50.0%
|
| |
| |
Performance Level
|
| | |
Three-Year TSR Percentile
Rating |
| | |
Shares Awarded
(as a % of Target) |
| |
| |
Maximum
|
| | |
75th Percentile
|
| | |
150%
|
| |
| |
Target
|
| | |
50th Percentile
|
| | |
100%
|
| |
| |
Threshold
|
| | |
25th Percentile
|
| | |
50%
|
| |