ASSOCIATED BANC-CORP
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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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(1
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Title of each class of securities to which transaction applies:
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(2
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Aggregate number of securities to which transaction applies:
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(3
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined):
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(4
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Proposed maximum aggregate value of transaction:
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(5
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Total fee paid:
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[ ]
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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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(1
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Amount Previously Paid:
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(2
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Form, Schedule or Registration Statement No.:
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(3
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Filing Party:
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(4
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Date Filed:
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1.
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The election of 14 individuals recommended by the Board of Directors to serve as directors.
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2.
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The approval of the Associated Banc-Corp 2020 Incentive Compensation Plan.
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3.
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Advisory approval of Associated Banc-Corp’s named executive officer compensation.
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4.
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The ratification of the selection of KPMG LLP as the independent registered public accounting firm for Associated Banc- Corp for the year ending December 31, 2020.
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5.
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Such other business as may properly come before the meeting and all adjournments thereof.
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GENERAL INFORMATION
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1
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PROPOSAL 1: ELECTION OF DIRECTORS
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3
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NOMINEES FOR ELECTION TO OUR BOARD
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3
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DIRECTOR QUALIFICATIONS
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8
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RECOMMENDATION OF THE BOARD OF DIRECTORS
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8
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AFFIRMATIVE DETERMINATIONS REGARDING DIRECTOR INDEPENDENCE
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8
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INFORMATION ABOUT THE BOARD OF DIRECTORS
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9
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BOARD COMMITTEES AND MEETING ATTENDANCE
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9
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SEPARATION OF BOARD CHAIRMAN AND CEO
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10
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BOARD DIVERSITY
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10
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DIRECTOR NOMINEE RECOMMENDATIONS
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11
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COMMUNICATIONS BETWEEN SHAREHOLDERS, INTERESTED PARTIES AND THE BOARD
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11
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COMPENSATION AND BENEFITS COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
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11
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STOCK OWNERSHIP
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12
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SECURITY OWNERSHIP OF BENEFICIAL OWNERS
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12
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STOCK OWNERSHIP GUIDELINES FOR EXECUTIVE OFFICERS AND DIRECTORS
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12
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SECURITY OWNERSHIP OF DIRECTORS AND MANAGEMENT
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13
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COMMON STOCK
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13
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RESTRICTED STOCK UNITS
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14
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DEPOSITARY SHARES OF PREFERRED STOCK
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15
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OWNERSHIP IN DIRECTORS’ DEFERRED COMPENSATION PLAN
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16
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PROPOSAL 2: APPROVAL OF THE ASSOCIATED BANC-CORP 2020 INCENTIVE COMPENSATION PLAN
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17
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RECOMMENDATION OF THE BOARD OF DIRECTORS
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28
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PROPOSAL 3: ADVISORY APPROVAL OF ASSOCIATED BANC-CORP’S NAMED EXECUTIVE OFFICER COMPENSATION
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29
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RECOMMENDATION OF THE BOARD OF DIRECTORS
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29
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COMPENSATION DISCUSSION AND ANALYSIS
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30
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COMPENSATION AND BENEFITS COMMITTEE REPORT
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45
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DIRECTOR COMPENSATION
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53
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DIRECTORS’ DEFERRED COMPENSATION PLAN
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53
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DIRECTOR COMPENSATION IN 2019
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54
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DELINQUENT SECTION 16(a) REPORTS
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55
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RELATED PARTY TRANSACTIONS
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55
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RELATED PARTY TRANSACTION POLICIES AND PROCEDURES
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55
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PROPOSAL 4: RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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56
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FEES PAID TO INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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56
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RECOMMENDATION OF THE BOARD OF DIRECTORS
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56
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REPORT OF THE AUDIT COMMITTEE
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57
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OTHER MATTERS THAT MAY COME BEFORE THE MEETING
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58
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SHAREHOLDER PROPOSALS
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58
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APPENDIX A: ASSOCIATED BANC-CORP 2020 INCENTIVE COMPENSATION PLAN
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A-i
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PURPOSE
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INTERNET AVAILABILITY OF PROXY MATERIALS
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WHO CAN VOTE
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QUORUM AND SHARES OUTSTANDING
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REQUIRED VOTES
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ABSTENTIONS AND BROKER NON-VOTES
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HOW YOU CAN VOTE
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REVOCATION OF PROXY
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NOMINEES FOR ELECTION TO OUR BOARD
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Philip B. Flynn
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Director since 2009
Age: 62
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Mr. Flynn joined Associated Banc-Corp as President and Chief Executive Officer in December 2009. Mr. Flynn has more than 40 years of financial services industry experience. Prior to joining Associated, Mr. Flynn held the position of Vice Chairman and Chief Operating Officer of Union Bank in California. During his nearly 30-year career at Union Bank, he held a broad range of other executive positions, including chief credit officer and head of commercial banking, specialized lending and wholesale banking activities. Mr. Flynn serves as a director or trustee of the Medical College of Wisconsin, the Milwaukee Art Museum, St. Norbert College, Wisconsin Manufacturers & Commerce, and the Green Bay Packers, Inc.
Mr. Flynn’s qualifications to serve as a director and Chair of the Corporate Development Committee include his extensive experience in the banking industry and his significant executive management experience at a large financial institution.
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John F. Bergstrom
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Director since 2010
Age: 73
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Mr. Bergstrom is Chairman and Chief Executive Officer of Bergstrom Corporation of Neenah, Wisconsin, one of the top 50 largest automobile dealer groups in the United States. Mr. Bergstrom also served as a director of Kimberly-Clark Corporation (NYSE:KMG), and WEC Energy Group (NYSE:WEC), retiring in 2019. He currently serves as a director of Advance Auto Parts (NYSE:APP), and is a director emeritus of the Green Bay Packers, Inc.
Mr. Bergstrom’s qualifications to serve as a director of Associated and member of the Compensation and Benefits Committee and the Corporate Governance Committee include his more than 30 years of leadership experience as a chief executive officer and over 50 years of combined experience as a director of various public companies. Mr. Bergstrom provides the board with a deep understanding of consumer sales and of Wisconsin’s business environment. Mr. Bergstrom has completed the National Association of Corporate Directors (“NACD”) corporate training program for Compensation Committee members and is now designated as a Master Fellow for Compensation Committee, governance and best practices. He was also designated as one of the top 100 corporate directors in America for 2017.
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Michael T. Crowley, Jr.
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Director since 2018
Age: 77
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Mr. Crowley held the position of Chairman of Bank Mutual Corporation from 2000 to 2018, serving as CEO of the subsidiary bank from 1985 to 2013, and President from 1983 to 2010. Mr. Crowley’s extensive experience in the financial community includes serving as Chairman for the Federal Home Loan Bank System Stockholder Study Committee, the State of Wisconsin Savings Bank Review Board, and the State of Wisconsin Savings and Loan Review Board. He also served as Vice Chairman for Federal Home Loan Bank of Chicago, a member of the Federal Reserve Board of Governors Thrift Institutions Advisory Council, President of the Wisconsin Banker’s Association, and a director of The Wisconsin Partnership for Housing Development, Inc.
Mr. Crowley’s qualifications to serve as a director of Associated and member of the Enterprise Risk Committee and Trust Committee include his executive management experience at a large financial institution, his significant experience in the banking industry, as well as his leadership experience as the former Chairman of Bank Mutual Corporation.
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R. Jay Gerken
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Director since 2014
Age: 68
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Mr. Gerken is a director of 19 mutual funds with approximately $38 billion in assets associated with Sanford C. Bernstein Fund, Inc. and the AB Multi-Manager Alternative Fund, which are mutual fund complexes. Mr. Gerken served as the President and Chief Executive Officer of Legg Mason Partners Fund Advisor, LLC from 2005 until June 2013. During that period, he was also the President and a director of the Legg Mason and Western Asset mutual funds complexes with combined assets in excess of $100 billion. Previously, Mr. Gerken served in a similar capacity at Citigroup Asset Management Mutual Funds from 2002 to 2005.
Mr. Gerken’s qualifications to serve as a director of Associated, Chairman of the Audit Committee and member of the Enterprise Risk Committee include his extensive investment and financial experience, as well as his executive leadership roles at several large mutual funds. Mr. Gerken is certified as a National Association of Corporate Directors Board Leadership Fellow. As a Chartered Financial Analyst with experience as a portfolio manager and in overseeing the preparation of financial statements, Mr. Gerken also meets the requirements of an audit committee financial expert.
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Judith P. Greffin
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Director since 2017
Age: 59
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Ms. Greffin served as Executive Vice President and Chief Investment Officer at the Allstate Corporation (NYSE: ALL), one of the nation’s largest personal lines insurers, from 2008 to 2016. Prior to this position, Ms. Greffin held several other key positions at Allstate from 1990 to 2008. Ms. Greffin currently serves on the board of Church Mutual Insurance Company and Trustmark Mutual Holding Company. In addition, she serves on the boards of the Northwestern Memorial Foundation, where she is a member of the investment and audit committees of Northwestern Memorial Healthcare, the Field Museum of Natural History, where she chairs the finance committee, and DePaul University, where she chairs the investment committee. She is also a member of the Miami University Foundation board of trustees and the Economic Club of Chicago.
Ms. Greffin’s qualifications to serve as a director of Associated and member of the Enterprise Risk Committee and the Trust Committee include her extensive investment, strategy and risk mitigation background as well as her executive leadership experience at a large publicly traded company. Ms. Greffin is also a Chartered Financial Analyst.
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Michael J. Haddad
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Director since 2019
Age: 53
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Mr. Haddad is the Chair of the Board of Directors of Schreiber Foods, Inc., an employee-owned, international dairy company headquartered in Green Bay, Wisconsin, since October 1, 2019. He served as President and Chief Executive Officer of Schreiber Foods, Inc. from 2009 to 2019, having served in a number of positions of increasing responsibility with the company since 1995. Mr. Haddad is also a member of the Board of Directors of Bellin Health Systems, the Board of Directors of the Green Bay Packers, Inc. and the Board of Directors of the Innovation Center for US Dairy.
Mr. Haddad’s qualifications to serve as a director of Associated include his extensive experience as a CEO and board member of a large global food company with annual revenues over $5 billion, and his long-standing familiarity with the markets in which Associated is headquartered and serves.
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William R. Hutchinson
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Director since 1994
Age: 77
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Mr. Hutchinson is Chairman of the Board. He has served as President of W. R. Hutchinson & Associates, Inc., an energy industry consulting company, since April 2001. Previously, he was Group Vice President, Mergers & Acquisitions, of BP Amoco p.l.c. from January 1999 to April 2001 and held the positions of Vice President - Financial Operations, Treasurer, Controller, and Vice President - Mergers, Acquisitions & Negotiations of Amoco Corporation, Chicago, Illinois, from 1981 until 1999. Mr. Hutchinson also serves as an independent director and Chairman of the Audit Committees of 23 closed-end mutual funds in the Legg Mason mutual fund complex.
Mr. Hutchinson’s qualifications to serve as Chairman of the Board of Directors of Associated and member of the Corporate Development Committee include executive level responsibility for the financial operations of a large publicly traded company and significant mergers and acquisitions experience. Although Mr. Hutchinson is not currently serving on Associated’s Audit Committee, he meets the requirements of an audit committee financial expert.
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Robert A. Jeffe
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Director since 2011
Age: 69
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Mr. Jeffe is Chairman of OAG Analytics, Inc., which has a web-based software platform that provides, through machine learning, optimization advice for drilling and field development for energy exploration and production companies. Mr. Jeffe served as Co-Chairman and Co-Founder of Hawkwood Energy, a private oil and gas company based in Denver and focused on onshore exploration and production in the U.S. from February 2012 until June 2017. Mr. Jeffe was Chairman of the Corporate Advisory Group of Deutsche Bank from November 2004 until February 2011. Previously, Mr. Jeffe served as Senior Vice President of Corporate Business Development for General Electric Company from December 2001 to November 2004, and as a member of GE Capital’s board of directors from January 2002 to June 2004. Mr. Jeffe has more than 34 years of investment banking experience and prior to working at Deutsche Bank, he was with Morgan Stanley, Credit Suisse and Smith Barney (now Citigroup) serving at all three firms as Managing Director, Head of the Global Energy and Natural Resources Group, and a member of the Investment Banking Management Committee and Global Leadership Group. At Morgan Stanley, Mr. Jeffe also was Co-Head of Global Corporate Finance.
Mr. Jeffe’s qualifications to serve as a director of Associated and member of the Audit Committee, the Corporate Development Committee and the Enterprise Risk Committee include his extensive investment banking and corporate finance experience, as well as his leadership roles at several large financial institutions and energy companies and his Board positions at these energy firms. Mr. Jeffe also meets the requirements of an audit committee financial expert.
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Eileen A. Kamerick
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Director since 2007
Age: 61
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Ms. Kamerick is an adjunct professor at leading law schools and consults on corporate governance and financial strategy matters. Previously, from March 2014 until January 2015, she was Senior Advisor to the CEO and Executive Vice President and CFO of ConnectWise, Inc., an international software and services company. Ms. Kamerick has also served as Chief Financial Officer at several leading companies, Heidrick & Struggles International, Inc., Leo Burnett, and BP Amoco Americas. She also currently serves on the board of directors of Hochschild Mining, plc (LON:HOC), serves as an independent director of 23 closed-end mutual funds in the Legg Mason mutual fund complex, and serves as independent trustee for the 24 AIG and Anchor Trust Funds. She previously served on the Board of Directors of Westell Technologies, Inc. (NASDAQ: WSTL). She has formal training in law, finance, and accounting.
Ms. Kamerick’s qualifications to serve as a director of Associated, Chair of the Corporate Governance Committee and member of the Compensation and Benefits Committee and the Corporate Development Committee include her executive-level responsibilities for the financial operations of both public and private companies, her board positions on public companies, and her experience as a frequent law school lecturer on corporate governance and corporate finance. She is also a National Association of Corporate Directors Board Leadership Fellow. In addition, Ms. Kamerick has earned the National Association of Corporate Directors Directorship Certification. Although Ms. Kamerick is not currently serving on Associated’s Audit Committee, she meets the requirements of an audit committee financial expert.
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Gale E. Klappa
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Director since 2016
Age: 69
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Mr. Klappa is the Executive Chairman of WEC Energy Group (NYSE: WEC) of Milwaukee, Wisconsin, one of the nation’s premier energy companies. Mr. Klappa was Chairman and Chief Executive Officer of WEC Energy Group from October 2017 until February 2019, and served as non-executive Chairman from May 2016 until October 2017. Mr. Klappa served as Chairman and Chief Executive Officer of WEC Energy Group from June 2015 until May 2016. Mr. Klappa had served as Chairman and Chief Executive Officer of Wisconsin Energy and We Energies from May 2004 until June 2015. Previously, Mr. Klappa was Executive Vice President, Chief Financial Officer and Treasurer of Southern Company (NYSE: SO) in Atlanta, Georgia and also held the positions of Chief Strategic Officer, North American Group President of Southern Energy Inc., Senior Vice President of Marketing for Georgia Power Company, a subsidiary of Southern Company and President and Chief Executive Officer of South Western Electricity, Southern Company’s electric distribution utility in the United Kingdom. Mr. Klappa also serves as a director of Badger Meter Inc. (NYSE: BMI) and is co-chair of the Milwaukee 7, a regional economic development initiative. He is also an officer and member of the Executive Committee of the Metropolitan Milwaukee Association of Commerce and serves on the School of Business Advisory Council for the University of Wisconsin-Milwaukee. Mr. Klappa also served on the board of directors of Joy Global Inc. from 2006 until the company was acquired in 2017.
Mr. Klappa’s qualifications to serve as a director of Associated and as a member of the Audit Committee and Compensation and Benefits Committee include his 40 years of management experience in large publicly traded companies, including over 25 years at a senior executive level, and his recognized leadership in the economic development of southeastern Wisconsin. Mr. Klappa also meets the requirements of an audit committee financial expert.
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Richard T. Lommen
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Director since 2004
Age: 75
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Mr. Lommen is Chairman of the Board of Courtesy Corporation, a McDonald’s franchisee, located in La Crosse, Wisconsin. Prior to that, he served as President of Courtesy Corporation from 1968 to 2006. Mr. Lommen served as Vice Chairman of the Board of First Federal Capital Corp from April 2002 to October 2004, when it was acquired by Associated.
Mr. Lommen’s qualifications to serve as a director of Associated, Chairman of the Compensation and Benefits Committee and a member of the Trust Committee include his successful small business/franchise ownership, his experience in all aspects of franchise ownership, particularly management and instruction of retail employees, and marketing and sales to consumers and his service as Vice Chairman of First Federal Capital Corp.
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DIRECTOR QUALIFICATIONS
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RECOMMENDATION OF THE BOARD OF DIRECTORS
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AFFIRMATIVE DETERMINATIONS REGARDING DIRECTOR INDEPENDENCE
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BOARD COMMITTEES AND MEETING ATTENDANCE
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Name
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Audit
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Compensation
and Benefits
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Corporate
Development
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Corporate
Governance
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Enterprise
Risk
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Trust
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John F. Bergstrom
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√
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√
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Michael T. Crowley, Jr.
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√
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√
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Philip B. Flynn*
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chair
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R. Jay Gerken(1)
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chair
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√
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Judith P. Greffin
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√
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√
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Michael J. Haddad
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√
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√
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William R. Hutchinson(2)
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√
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Robert A. Jeffe(1)
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√
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√
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√
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Eileen A. Kamerick
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√
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√
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chair
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Gale E. Klappa(1)
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√
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√
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Richard T. Lommen
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chair
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√
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Cory L. Nettles
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√
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√
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√
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Karen T. van Lith
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√
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chair
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John (Jay) B. Williams(1)
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√
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chair
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Number of Meetings
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10
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5
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3
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4
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9
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4
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(1)
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The Board has determined that this director qualifies as an audit committee financial expert.
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(2)
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As Chairman of the Board, Mr. Hutchinson may attend meetings of any Board committee.
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SEPARATION OF BOARD CHAIRMAN AND CEO
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BOARD DIVERSITY
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The number of directors should be maintained at 10 to 14 persons with the flexibility to expand, if required, to support acquisitions or mergers.
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Geographic diversity, as it relates to the markets Associated serves.
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Industry representation, including a mix and balance of manufacturing, service, public and private company experience.
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Multi-disciplinary expertise, including financial/ accounting expertise, sales/marketing expertise, mergers and acquisition expertise, regulatory, manufacturing, and production expertise, educational institutions, and public service expertise.
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Experience with technology, including cyber security, digital marketing and social media.
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Racial, ethnic, and gender diversity.
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A majority of the members of the Board will be “independent” directors as defined by applicable law, including the rules and regulations of the SEC and the rules of the NYSE.
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DIRECTOR NOMINEE RECOMMENDATIONS
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COMMUNICATIONS BETWEEN SHAREHOLDERS, INTERESTED PARTIES AND THE BOARD
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COMPENSATION AND BENEFITS COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
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SECURITY OWNERSHIP OF BENEFICIAL OWNERS
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Name and Address
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Amount and Nature of Beneficial Ownership(1)
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Percent
of Class(2)
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The Vanguard Group, Inc.
100 Vanguard Boulevard
Malvern, PA 19355
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15,443,907(3)
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9.86%
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BlackRock, Inc.
55 East 52nd Street
New York, NY 10055
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15,180,705(4)
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9.69%
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Dimensional Fund Advisors LP
Building One
6300 Bee Cave Road
Austin, TX 78746
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11,193,008(5)
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7.15%
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(1)
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Shares are deemed to be “beneficially owned” by a person if such person, directly or indirectly, has or shares (a) the power to vote or to direct the voting of such shares, or (b) the power to dispose or direct the disposition of such shares. In addition, a person is deemed to beneficially own any shares of which such person has the right to acquire beneficial ownership within 60 days.
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(2)
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Based on 156,606,654 shares of common stock outstanding as of February 14, 2020.
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(3)
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Based on an amended Schedule 13G filed on February 12, 2020, The Vanguard Group, Inc. (“Vanguard”) has sole voting power with respect to 84,551 shares, shared voting power with respect to 27,154 shares, sole dispositive power with respect to 15,355,177 shares and shared dispositive power with respect to 88,730 shares. Vanguard Fiduciary Trust Company and Vanguard Investments Australia, Ltd., each a wholly owned subsidiary of Vanguard, are beneficial owners of 61,576 shares and 50,129 shares, respectively, as a result of serving as investment managers to their respective clients.
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(4)
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Based on an amended Schedule 13G filed on February 5, 2020, BlackRock, Inc. and certain affiliated entities have sole voting power with respect to 14,565,743 shares and sole dispositive power with respect to 15,180,705 shares.
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(5)
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Based on an amended Schedule 13G filed on February 12, 2020, Dimensional Fund Advisors LP (“DFA”) has sole voting power with respect to 11,018,364 shares and sole dispositive power with respect to 11,193,008 shares. DFA is a registered investment adviser to four mutual funds and serves as investment manager or sub-adviser to various other clients (collectively, the “Funds”). In these roles, DFA or its subsidiaries (collectively, “Dimensional”) may possess voting and/or investment power over the securities of the issuer that are owned by the Funds, and may be deemed to be the beneficial owner of such shares. Dimensional disclaims beneficial ownership of such securities.
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STOCK OWNERSHIP GUIDELINES FOR EXECUTIVE OFFICERS AND DIRECTORS
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•
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A requirement to hold 50% of vested shares of restricted stock granted for a period of three years after the vesting date of the stock; and
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•
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Additional required holdings calculated as a multiple of the executive officer’s annual base salary - six times
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SECURITY OWNERSHIP OF DIRECTORS AND MANAGEMENT
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COMMON STOCK
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Name of Beneficial Owner
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Amount and Nature of Beneficial Ownership(1)
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Shares Issuable Within 60 Days(2)
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Percent
of Class
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Directors
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|
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Philip B. Flynn
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1,175,421
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389,982
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*
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John F. Bergstrom
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20,500
|
|
—
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*
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Michael T. Crowley, Jr.
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963,526
|
|
—
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*
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R. Jay Gerken
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2,000
|
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—
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*
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Judith P. Greffin
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—
|
|
—
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—
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Michael J. Haddad
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—
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—
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—
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William R. Hutchinson
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52,301
|
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—
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*
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Robert A. Jeffe
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—
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—
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—
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Eileen A. Kamerick
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5,674
|
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—
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*
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Gale E. Klappa
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—
|
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—
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—
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Richard T. Lommen
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163,870
|
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—
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*
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Cory L. Nettles
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—
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—
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—
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Karen T. van Lith
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10,614
|
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—
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*
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John (Jay) B. Williams
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10,314
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—
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*
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Named Executive Officers
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|
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Christopher J. Del Moral-Niles
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187,616
|
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91,548
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*
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John A. Utz
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153,682
|
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79,335
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*
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Randall J. Erickson
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200,874
|
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84,173
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*
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David Stein
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159,258
|
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61,296
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*
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All Directors and Executive Officers as a group (28
persons)
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3,731,017
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998,279
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2.38%
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*
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Denotes percentage is less than 1%.
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(1)
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Beneficial ownership includes shares with voting and investment power in those persons whose names are listed above or by their spouses or trusts. Some shares may be owned in joint tenancy, by a spouse, by a corporate entity, or in the name of a trust or by minor children. Shares include shares issuable within 60 days of February 14, 2020 and vested and unvested service-based restricted stock.
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(2)
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Shares subject to options exercisable within 60 days of February 14, 2020.
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RESTRICTED STOCK UNITS
|
Beneficial Owner
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Number of RSUs
|
|
Directors
|
|
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John F. Bergstrom
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39,816
|
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Michael T. Crowley, Jr.
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10,959
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R. Jay Gerken
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33,592
|
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Judith P. Greffin
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16,091
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Michael J. Haddad
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9,632
|
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William R. Hutchinson
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43,996
|
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Robert A. Jeffe
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39,816
|
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Eileen A. Kamerick
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39,816
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Gale E. Klappa
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22,389
|
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Richard T. Lommen
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39,816
|
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Cory L. Nettles
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38,786
|
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Karen T. van Lith
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39,816
|
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John (Jay) B. Williams
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39,816
|
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All Directors as a group
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414,341
|
|
Beneficial Owner
|
Number of RSUs
|
|
Named Executive Officers
|
|
|
Philip B. Flynn
|
214,264
|
|
Christopher J. Del Moral-Niles
|
50,094
|
|
John A. Utz
|
43,346
|
|
Randall J. Erickson
|
40,176
|
|
David Stein
|
36,256
|
|
All Executive Officers as a group (15 persons)
|
590,236
|
|
DEPOSITARY SHARES OF PREFERRED STOCK
|
Name of Beneficial Owner
|
Amount and Nature of Beneficial
Ownership(1)
|
|
Percent of Class
|
||||||||||
Series C Preferred Stock
|
Series D Preferred Stock
|
Series E Preferred Stock
|
Series C Preferred Stock
|
Series D Preferred Stock
|
Series E Preferred Stock
|
||||||||
Directors
|
|
|
|
|
|
|
|
||||||
Philip B. Flynn
|
40,000
|
|
—
|
|
190,000
|
|
|
1.54%
|
|
—
|
|
4.75%
|
|
John F. Bergstrom
|
—
|
|
40,000
|
|
20,000
|
|
|
—
|
|
1.01%
|
|
*
|
|
Michael T. Crowley, Jr.
|
—
|
|
—
|
|
8,000
|
|
|
—
|
|
—
|
|
*
|
|
R. Jay Gerken
|
4,000
|
|
—
|
|
—
|
|
|
*
|
|
—
|
|
—
|
|
Judith P. Greffin
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
Michael J. Haddad
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
William R. Hutchinson
|
—
|
|
—
|
|
4,000
|
|
|
—
|
|
—
|
|
*
|
|
Robert A. Jeffe
|
—
|
|
60,000
|
|
—
|
|
|
—
|
|
1.51%
|
|
—
|
|
Eileen A. Kamerick
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
Gale E. Klappa
|
—
|
|
4,000
|
|
2,000
|
|
|
—
|
|
*
|
|
*
|
|
Richard T. Lommen
|
—
|
|
—
|
|
12,000
|
|
|
—
|
|
—
|
|
*
|
|
Cory L. Nettles
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
Karen T. van Lith
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
John (Jay) B. Williams
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
Named Executive Officers
|
|
|
|
|
|
|
|
||||||
Christopher J. Del Moral-Niles
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
John A. Utz
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
Randall J. Erickson
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
David Stein
|
1,000
|
|
2,000
|
|
4,000
|
|
|
*
|
|
*
|
|
*
|
|
All Directors and Executive Officers as a group (28 persons)
|
45,000
|
|
106,000
|
|
240,000
|
|
|
1.73%
|
|
2.66%
|
|
6.00%
|
|
*
|
Denotes percentage is less than 1%.
|
(1)
|
Beneficial ownership includes shares with voting and investment power in those persons whose names are listed above or by their spouses or trusts. Some shares may be owned in joint tenancy, by a spouse, or in the name of a trust or by minor children.
|
OWNERSHIP IN DIRECTORS’ DEFERRED COMPENSATION PLAN
|
Beneficial Owner
|
|
Account Balance at
February 14, 2020
|
|
Equivalent Number
of Shares of
Common Stock(1)
|
||
John F. Bergstrom
|
|
$263,533
|
|
13,001
|
|
|
Michael T. Crowley, Jr.
|
|
—
|
|
|
—
|
|
R. Jay Gerken
|
|
115,012
|
|
|
5,674
|
|
Judith P. Greffin
|
|
115,012
|
|
|
5,674
|
|
Michael J. Haddad
|
|
18,466
|
|
|
911
|
|
William R. Hutchinson
|
|
593,972
|
|
|
29,303
|
|
Robert A. Jeffe
|
|
422,265
|
|
|
20,832
|
|
Eileen A. Kamerick
|
|
488,693
|
|
|
24,109
|
|
Gale E. Klappa
|
|
115,012
|
|
|
5,674
|
|
Richard T. Lommen
|
|
1,841,044
|
|
|
90,826
|
|
Cory L. Nettles
|
|
115,012
|
|
|
5,674
|
|
Karen T. van Lith
|
|
445,272
|
|
|
21,967
|
|
John (Jay) B. Williams
|
|
80,716
|
|
|
3,982
|
|
All Directors as a group
|
|
$4,614,009
|
|
227,627
|
|
(1)
|
Based on the closing price of $20.27 of the Common Stock as of February 14, 2020.
|
•
|
continue to provide a balanced program that rewards individual actions and behaviors that support Associated’s mission, business strategies and performance-based culture without incentivizing unnecessary and excessive risk-taking;
|
•
|
ensure that sufficient shares of Common Stock are available to provide a balanced mix of short-term and long-term variable compensation; and
|
•
|
continue to attract, retain and motivate highly skilled executive officers and other colleagues.
|
Plan
|
Shares to be Issued upon Exercise of Outstanding Options(1)
|
Restricted Stock Awards
|
Non-Employee Director RSU Awards
|
Employee RSU Awards
|
Shares Remaining Available for Future Grant
|
|||||
Associated Banc-Corp 2017 Incentive Compensation Plan(4)
|
2,602,759
|
|
718,240
|
|
172,958
|
|
181,893
|
|
5,967,893(3)
|
|
Associated Banc-Corp 2013 Incentive Compensation Plan(5)
|
2,844,293
|
|
7,368
|
|
203,660
|
|
82,101(2)
|
|
—
|
|
Associated Banc-Corp 2010 Incentive Compensation Plan(6)
|
655,310
|
|
—
|
|
42,730
|
|
—
|
|
—
|
|
Total
|
6,102,362
|
|
725,608
|
|
419,348
|
|
263,994
|
|
5,967,893
|
|
(2)
|
Represents (a) the number of outstanding time-vested RSUs granted in February 2017, and (b) the number of shares that would be issued at the target level of payout for performance-vested RSUs, which is not necessarily indicative of the amount of any actual future payout.
|
(3)
|
Represents the number of shares remaining available for future grant where outstanding performance-based awards are accounted for at target performance levels, which is not necessarily indicative of the amount of any actual future payout.
|
(4)
|
No further grants will be made under the 2017 Plan if the 2020 Plan is approved by shareholders.
|
(6)
|
No further grants have been or will be made under this plan since the adoption of the Associated Banc-Corp 2013 Incentive Compensation Plan in 2013.
|
•
|
Shareholder approval required for additional shares. A pool of 10,000,000 shares of Common Stock is available for issuance under the 2020 Plan, in addition to any shares of Common Stock remaining available under the 2017 Plan immediately prior to shareholder approval of the 2020 Plan (and as further described under the heading “Shares Authorized for Issuance”). Further shareholder approval would be required to issue any additional shares under the 2020 Plan.
|
•
|
Fungible plan design. The 2020 Plan uses a “fungible share pool” design. Under this design, “full-value” awards (i.e., stock-based awards other than stock options and SARs) will be counted against the authorized share pool at an accelerated rate, differently than stock options and SARs, for purposes of determining the number of shares available under the 2020 Plan (and as further described under the heading “Shares Authorized for Issuance”). This design offers the Committee flexibility in determining which types of awards under the 2020 Plan are best suited for its needs within the overall authorized share pool, while simultaneously recognizing that certain types of awards may be more valuable than others.
|
•
|
Limitations on share recycling of options, SARs and shares repurchased. Shares that are not issued or delivered as a result of the net settlement of an outstanding option or SAR, shares used to pay the exercise price or required tax withholding for an award under the 2020 Plan and shares repurchased on the open market with the proceeds of an exercise will not be available for future awards under the 2020 Plan.
|
•
|
Prohibition against repricing of stock options and SARs without shareholder approval. The 2020 Plan prohibits the repricing of stock options and SARs without shareholder approval.
|
•
|
Vesting restrictions. The 2020 Plan contains minimum vesting requirements for most awards, the duration of which depends on whether the award is tied to the achievement of specified performance goals.
|
•
|
Double-trigger vesting upon Change in Control. The 2020 Plan requires “double trigger” change in control vesting for incentive compensation awards (i.e., a termination of employment must occur within a limited time period following a change in control for outstanding incentive awards to vest).
|
•
|
Clawback policy. Certain awards granted to an executive officer under the 2020 Plan will be subject to Associated’s Clawback Policy and will become subject to any regulations or stock exchange listing rules promulgated under the Dodd-Frank Act that are applicable to Associated. Under Associated’s Clawback Policy, Associated may require any executive officer of Associated to repay or return cash bonuses and equity awards granted through a performance incentive plan in the event that Associated issues a material restatement of its financial statements.
|
•
|
options (non-qualified and incentive stock options);
|
•
|
SARs;
|
•
|
restricted stock;
|
•
|
RSUs;
|
•
|
deferred stock;
|
•
|
performance units;
|
•
|
annual incentive awards; and
|
•
|
shares.
|
•
|
earnings before any or all of interest, tax, depreciation or amortization (actual and adjusted and either in the aggregate or on a per-share basis);
|
•
|
earnings (either in the aggregate or on a per-share basis);
|
•
|
net income or loss (either in the aggregate or on a per-share basis);
|
•
|
operating profit;
|
•
|
cash flow (either in the aggregate or on a per-share basis);
|
•
|
free cash flow (either in the aggregate or on a per-share basis);
|
•
|
capital ratio (either Common Equity Tier 1 or other);
|
•
|
non-interest expense;
|
•
|
costs;
|
•
|
gross revenues;
|
•
|
deposit growth;
|
•
|
loan loss provisions;
|
•
|
reductions in expense levels;
|
•
|
risk adjusted return on capital;
|
•
|
operating and maintenance cost management and employee productivity;
|
•
|
share price or total shareholder return (including growth measures and total shareholder return or attainment by the shares of a specified value for a specified period of time);
|
•
|
net economic value;
|
•
|
non-performing asset ratio;
|
•
|
net charge-off ratio;
|
•
|
net interest margin;
|
•
|
economic value added or economic value added momentum;
|
•
|
aggregate product unit and pricing targets;
|
•
|
strategic business criteria, consisting of one or more objectives based on meeting specified revenue, sales, credit quality, loan quality, market share, market penetration, geographic business expansion goals, objectively identified project milestones, production volume levels, cost targets, and goals relating to acquisitions or divestitures;
|
•
|
return on average assets or average equity;
|
•
|
achievement of objectives relating to diversity, employee turnover, or other human capital metrics;
|
•
|
results of customer satisfaction surveys or other objective measures of customer experience; and/or
|
•
|
debt ratings, debt leverage and debt service.
|
•
|
With certain exemptions, an acquisition by any individual, entity or group of beneficial ownership of at least 35% of Associated’s then-outstanding shares of Common Stock or the combined voting power of Associated’s then-outstanding voting securities entitled to vote in the election of directors;
|
•
|
A change in the composition of the Board of Directors such that the individuals who constituted the Board as of the effective date of the 2020 Plan cease for any reason to constitute at least a majority of the Board;
|
•
|
With certain exemptions, a reorganization, merger, statutory share exchange or consolidation or similar transaction involving Associated, a sale or other disposition of all or substantially all of Associated’s assets, or the acquisition of assets or securities of another entity by Associated; and/or
|
•
|
The approval by shareholders of a complete liquidation or dissolution of Associated.
|
•
|
A change in the ownership of Associated, which occurs when any one person, or more than one person acting as a group, acquires ownership of stock, that together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of Associated’s stock;
|
•
|
A change in the effective control of Associated, which occurs when any one person, or more than one person acting as a group, acquires (or has acquired during a 12-month period) ownership of stock possessing 35% or more of the total voting power of Associated’s stock; and/or
|
•
|
A change in the ownership of a substantial portion of Associated’s assets, which occurs when one person, or more than one person acting as a group, acquires (or has acquired during a 12-month period) assets from Associated that have a total gross fair market value equal to 85% or more than the total gross fair market value of all of the assets of Associated immediately prior to such acquisition.
|
Name and Position or Group
|
|
2019 Stock Options
|
|
2019 Restricted Stock Grants
|
|
2019 RSUs
|
|||
Philip B. Flynn
|
|
|
|
|
|
|
|||
President and CEO
|
|
169,857
|
|
|
29,816
|
|
|
59,631
|
|
Christopher J. Del Moral-Niles
|
|
|
|
|
|
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
39,212
|
|
|
6,883
|
|
|
13,766
|
|
John A. Utz
|
|
|
|
|
|
|
|
|
|
Executive Vice President, Head of Corporate Banking and Milwaukee Market President
|
|
33,777
|
|
|
5,930
|
|
|
11,858
|
|
Randall J. Erickson
|
|
|
|
|
|
|
|
|
|
Executive Vice President, General Counsel, Corporate Secretary
|
|
29,765
|
|
|
5,225
|
|
|
10,449
|
|
David L. Stein
|
|
|
|
|
|
|
|
|
|
Executive Vice President, Head of Consumer & Business Banking
|
|
25,559
|
|
|
4,486
|
|
|
8,973
|
|
Executive Officers as a Group
|
|
489,911
|
|
|
86,060
|
|
|
165,974
|
|
Non-Employee Directors as a Group
|
|
—
|
|
|
—
|
|
|
81,965
|
|
Non-Executive Officer Employees as a Group
|
|
487,840
|
|
|
345,746
|
|
|
—
|
|
Plan Category
|
(a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights
|
|
(b) Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
|
|
(c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (a))
|
|||
Equity compensation plans approved by security holders
|
5,542,954
|
|
|
$20.13
|
|
|
7,561,080
|
|
Equity compensation plans not approved by security holders
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
5,542,954
|
|
|
$20.13
|
|
|
7,561,080
|
|
RECOMMENDATION OF THE BOARD OF DIRECTORS
|
•
|
Target total compensation for Associated’s Named Executive Officers (the “NEOs”) at market-competitive levels, while maintaining an overall compensation program that is aligned with and reflects the performance of Associated;
|
•
|
A substantial portion of each NEO’s target compensation is variable and tied directly to corporate performance;
|
•
|
Variable pay opportunities are more heavily weighted toward long-term performance;
|
•
|
All long-term incentives are denominated and delivered in equity;
|
•
|
Equity awards are granted in the form of stock options, restricted stock awards (“RSAs”) and performance-based restricted stock units (“RSUs”), which are directly aligned with shareholder value;
|
•
|
Stock Ownership requirements, which include both a salary multiple and a post-vesting holding period, are in place for all Executive Committee members;
|
•
|
None of the NEOs are entitled to receive gross-up payments in connection with any excise tax or other tax liabilities (except in connection with relocation expenses); and
|
•
|
Only a limited number of perquisites are available to NEOs.
|
RECOMMENDATION OF THE BOARD OF DIRECTORS
|
CD&A DIRECTORY
|
EXECUTIVE SUMMARY
|
30
|
|
OVERVIEW OF COMPENSATION METHODOLOGY
|
33
|
|
COMPONENTS OF TOTAL EXECUTIVE COMPENSATION FOR 2019
|
35
|
|
ANNUAL TOTAL COMPENSATION
|
37
|
|
LONG-TERM INCENTIVE COMPENSATION
|
40
|
|
OTHER BENEFIT PROGRAMS
|
43
|
|
COMPENSATION DECISIONS FOR 2020
|
44
|
|
POLICIES
|
45
|
|
EXECUTIVE SUMMARY
|
|
What We Do (1)
|
Environmental
|
•
Our Power and Utilities specialized lending group served as the cornerstone of our environmental business strategy. Since 2012, this group has made over $1.2 billion in total credit commitments to support more than 78 wind, solar and hydroelectric projects, representing cumulative generating capacity in excess of 8.8 gigawatts. These projects, spanning across 20 states, generated a significant number of jobs in their surrounding communities while providing clean, sustainable power.Continued to improve energy efficiency in our newly constructed and renovated branches to effectively reduce our branch network’s carbon footprint
•
Ensured our newly constructed branches exceed the code required energy performance standards by providing an R-value of 13.5 in excess of what is required under the current energy code
•
Strived to use “green” materials wherever possible; for example, our flooring, wall, ceiling and counter-top materials are made with either recyclable content or high life-cycle content
•
Used occupancy sensors; implemented power management processes on all personal computers, monitors and printers; and used Energy Star compliant appliances to manage energy use
•
Implemented aggressive LED lighting program and have been retrofitting our branch locations where necessary
•
Protected the environment and our customers’ information security; through our shredding efforts 1,000 tons of materials were recycled
|
Social
|
•
Have women or minorities in 61% of all Assistant Vice President roles
•
Have women in 32% of all Senior Vice President roles
•
Diversified with 11% of minority colleagues in Assistant Vice Presidents and above roles
•
Successfully implemented Milwaukee workplace strategy resulting in 40% minority hires and reduction of minority attrition by 8%
•
Educated all colleagues on unconscious bias and leaders on diversity and inclusion
•
Invested in our communities through 67,300 colleague volunteer hours in 2019, reaching a value of more than $11,000,000 in donated time since 2012.
•
Actively recruited protected veterans which represents 2.5% of new hires
|
Governance
|
•
Board oversight through designated committees for Audit, Compensation and Benefits, Corporate Development, Corporate Governance, Enterprise Risk, and Trust
•
Executive stock ownership guidelines, which are described under “Stock Ownership - Stock Ownership Guidelines for Executive Officers and Directors” on page 12
•
4 out of 14 (29%) director nominees bring gender or racial diversity to the Board
•
3 out of 14 (21%) director nominees are women
|
SALARY
|
INCENTIVE
|
EQUITY
|
|
|
|
Base pay that is targeted at the midpoint of the market and adjusted to account for individual performance and tenure
|
A formulaic annual award that is initially based on the achievement of total Company results and adjusted for individual performance
|
Equity represents the largest portion of executive pay with direct alignment to shareholder value and the value of our Common stock
|
We Do
|
|
We Don’t
|
||
|
Pay for performance by having a significant portion of executives’ compensation tied to Company performance and weighted towards long-term.
|
|
X
|
Have excess perquisites. We do include executive physicals, financial planning services and access to clubs only for business purposes.
|
|
Utilize Long-Term Incentive pay that is denominated and delivered in equity and does not have a cash component.
|
|
X
|
Make tax gross-up payments in connection with excise tax or other tax liabilities except for relocation.
|
|
Use robust incentive plan governance that is reviewed by internal key experts, by the Committee, and by an independent third party as needed.
|
|
X
|
Pay dividend equivalents until the end of the performance period on unvested performance stock. Dividends are calculated based on the number of shares awarded.
|
|
Retain an independent compensation consultant selected by the Committee for Executive pay consultation.
|
|
X
|
Allow hedging or pledging of Company securities by executive officers or directors.
|
|
Require a double trigger for vesting of equity awards and severance payments upon a change of control.
|
|
X
|
Have employment agreements with our NEOs.
|
|
Clawback pay related to material restatement of financial statements.
|
|
|
|
|
Hold an annual say-on-pay vote in order to elicit regular feedback from shareholders.
|
|
|
|
|
Hold proactive shareholder and advisory firm engagement meetings to solicit feedback.
|
|
|
|
|
Require stock ownership for executives based on a salary multiple of stock and retention of a portion of shares after vesting.
|
|
|
|
OVERVIEW OF COMPENSATION METHODOLOGY
|
•
|
providing a balanced program that rewards individual actions and behaviors that support Associated’s mission, business strategies and performance-based culture without incentivizing unnecessary and/or excessive risk-taking;
|
•
|
targeting compensation at market-competitive median levels, while maintaining an overall compensation program that is aligned with and reflects the performance of Associated;
|
•
|
providing a competitive mix of short-term and long-term variable compensation; and
|
•
|
attracting and retaining executives whose judgment and leadership abilities result in overall success for Associated and increased value to our shareholders.
|
•
|
a direct reporting relationship of the compensation consultant to the Committee;
|
•
|
a provision in the Committee’s engagement letter with Pay Governance specifying the nature of the work to be conducted and the role that management may play in that work; and
|
•
|
an annual update to the Committee on the compensation consultant’s financial relationship with Associated, including a summary of the work performed for Associated during the preceding 12 months.
|
•
|
establishing and approving compensation and benefit policies;
|
•
|
approving the amount and form of compensation for Associated’s executives and non-management directors; and
|
•
|
issuing an annual report on executive and CEO compensation for inclusion in Associated’s annual proxy statement and Form 10-K.
|
COMPONENTS OF TOTAL EXECUTIVE COMPENSATION FOR 2019
|
•
|
Base salaries are generally in line with median levels;
|
•
|
Associated's incentive plan payouts, which are based on Associated’s performance versus short-term and long-term EPS, ROCET1 and TSR targets, are in line with median levels; and
|
•
|
Due to Associated’s pay philosophy that emphasizes equity over cash compensation, Associated’s long-term incentive opportunities are modestly above the competitive 50th percentile.
|
ANNUAL TOTAL COMPENSATION
|
•
|
Fully diluted EPS, which the Committee determined to be appropriate because EPS is commonly recognized as an important measure of profitability and financial health and is the leading indicator of value creation for our shareholders. Diluted EPS is the reported GAAP EPS without any adjustments; and
|
•
|
ROCET1, which the Committee believes is an important indicator of prudent capital stewardship, particularly in light of increasing industry and regulatory focus on capital measures. ROCET1 measures profitability by showing how much profit we generate (reported net income) with the capital our shareholders have invested (equity) and how efficiently we have deployed those funds. ROCET1 is calculated based on the definition used by the Federal Reserve of GAAP net income divided by Common Equity Tier One.
|
|
Return on Common Equity Tier 1 (ROCET1)
Interpolate each 10 Basis Points outside target range
|
|
Final Interpolated Results
|
|||||||||
|
2019 EPS
|
< 9.99%
|
10.00%- 10.99%
|
11.00%- 11.99%
|
12.00%- 12.99%
|
13.00%- 14.00%
|
14.01%- 15.00%
|
15.01%- 16.00%
|
16.01%- 17.00%
|
> 17.01%
|
|
ROCET1 12.59%
|
|
$2.08
|
25%
|
26% - 63%
|
64% - 88%
|
89% - 101%
|
102%
|
103% - 136%
|
137% - 160%
|
161% - 174%
|
175%
|
|
92%
|
|
$2.07
|
25%
|
26% - 63%
|
64% - 88%
|
89% - 100%
|
101%
|
102% - 136%
|
137% - 160%
|
161% - 174%
|
175%
|
|
91%
|
|
$2.06
|
25%
|
26% - 63%
|
64% - 87%
|
88% - 100%
|
101%
|
102% - 136%
|
137% - 160%
|
161% - 174%
|
175%
|
|
91%
|
Target
|
$2.05
|
25%
|
26% - 63%
|
64% - 87%
|
88% - 99%
|
100%
|
101% - 135%
|
136% - 159%
|
160% - 174%
|
175%
|
|
90%
|
|
$2.04
|
25%
|
26% - 63%
|
64% - 86%
|
87% - 99%
|
100%
|
101% - 135%
|
136% - 159%
|
160% - 174%
|
175%
|
|
90%
|
|
$2.03
|
25%
|
26% - 63%
|
64% - 86%
|
87% - 98%
|
99%
|
100% - 135%
|
136% - 159%
|
160% - 174%
|
175%
|
|
90%
|
|
$1.93
|
25%
|
26% - 63%
|
64% - 82%
|
83% - 93%
|
94%
|
95% - 132%
|
133% - 158%
|
159% - 174%
|
175%
|
|
85%
|
|
$1.92
|
25%
|
26% - 63%
|
64% - 81%
|
82% - 93%
|
94%
|
95% - 132%
|
133% - 158%
|
159% - 174%
|
175%
|
|
85%
|
Actual
|
$1.91
|
25%
|
26% - 63%
|
64% - 81%
|
82% - 92%
|
93%
|
94% - 132%
|
133% - 158%
|
159% - 174%
|
175%
|
|
84%
|
|
$1.90
|
25%
|
26% - 63%
|
64% - 81%
|
82% - 92%
|
93%
|
94% - 131%
|
132% - 158%
|
159% - 174%
|
175%
|
|
84%
|
|
Successful completion of acquisitions in 2019;
|
|
Significant growth in key financial measures, including revenue and core deposits and fee income;
|
|
Improving asset quality; and
|
|
Reducing expenses and streamlining processes.
|
LONG-TERM INCENTIVE COMPENSATION
|
|
Vesting of the 2017-2019 Long-Term Incentive Performance Plan
|
||||||||||||||
|
3 Yr EPS
|
Total Shareholder Return (Q4 2019 vs Q4 2016 TSR Relative Ranking)
|
|||||||||||||
|
0%
|
7%
|
13%
|
20%
|
27%
|
33%
|
40%
|
TARGET RANGE
40.1-60%
|
67%
|
73%
|
80%
|
87%
|
93%
|
100%
|
|
|
5.00
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.95
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.90
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
Actual
|
4.86
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.85
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.80
|
146%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.75
|
136%
|
144%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.70
|
126%
|
134%
|
142%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.65
|
116%
|
124%
|
132%
|
141%
|
149%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.60
|
106%
|
114%
|
122%
|
131%
|
139%
|
144%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.55
|
96%
|
104%
|
112%
|
121%
|
129%
|
136%
|
142%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.50
|
86%
|
94%
|
102%
|
111%
|
119%
|
127%
|
136%
|
148%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.45
|
76%
|
84%
|
92%
|
101%
|
109%
|
117%
|
126%
|
138%
|
150%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.40
|
66%
|
74%
|
82%
|
91%
|
99%
|
107%
|
116%
|
128%
|
149%
|
150%
|
150%
|
150%
|
150%
|
150%
|
|
4.35
|
56%
|
64%
|
72%
|
81%
|
89%
|
97%
|
106%
|
118%
|
139%
|
147%
|
150%
|
150%
|
150%
|
150%
|
|
4.30
|
46%
|
54%
|
62%
|
71%
|
79%
|
87%
|
96%
|
108%
|
129%
|
137%
|
146%
|
150%
|
150%
|
150%
|
Target
|
4.26
|
38%
|
46%
|
54%
|
63%
|
71%
|
79%
|
88%
|
100%
|
121%
|
129%
|
138%
|
146%
|
150%
|
150%
|
|
4.25
|
36%
|
44%
|
52%
|
61%
|
69%
|
77%
|
86%
|
98%
|
119%
|
127%
|
136%
|
144%
|
150%
|
150%
|
|
4.20
|
26%
|
34%
|
42%
|
51%
|
59%
|
67%
|
76%
|
88%
|
109%
|
117%
|
126%
|
134%
|
142%
|
150%
|
|
4.15
|
25%
|
25%
|
32%
|
41%
|
49%
|
57%
|
66%
|
78%
|
99%
|
107%
|
116%
|
124%
|
132%
|
141%
|
OTHER BENEFIT PROGRAMS
|
COMPENSATION DECISIONS FOR 2020
|
POLICIES
|
SUMMARY COMPENSATION TABLE
|
Name and Principal Position
|
Year
|
Salary ($)
|
Bonus ($)
|
Stock Awards ($)(1)
|
Option Awards ($)(1)
|
Non-Equity Incentive Plan Compensation ($)(2)
|
Change in Pension Value and Non-Qualified Deferred Compensation Earnings ($)(3)
|
All Other Compensation ($)(4)
|
Total
($)(5)
|
||||||||||||||
Philip B. Flynn
President and CEO
|
2019
|
$
|
1,250,000
|
|
$0
|
$
|
1,968,728
|
|
$
|
656,248
|
|
$
|
977,705
|
|
$
|
12,217
|
|
$
|
275,399
|
|
$
|
5,140,297
|
|
2018
|
$
|
1,250,000
|
|
$0
|
$
|
1,874,986
|
|
$
|
624,996
|
|
$
|
1,161,170
|
|
$
|
11,218
|
|
$
|
250,472
|
|
$
|
5,172,842
|
|
|
2017
|
$
|
1,250,000
|
|
$0
|
$
|
1,874,981
|
|
$
|
624,999
|
|
$
|
784,574
|
|
$
|
10,416
|
|
$
|
232,772
|
|
$
|
4,777,742
|
|
|
Christopher J. Del Moral-Niles
Executive Vice President,
Chief Financial Officer
|
2019
|
$
|
505,000
|
|
$0
|
$
|
454,484
|
|
$
|
151,497
|
|
$
|
455,000
|
|
$
|
12,119
|
|
$
|
39,520
|
|
$
|
1,617,620
|
|
2018
|
$
|
504,000
|
|
$0
|
$
|
454,469
|
|
$
|
151,498
|
|
$
|
540,000
|
|
$
|
11,136
|
|
$
|
36,620
|
|
$
|
1,697,723
|
|
|
2017
|
$
|
492,167
|
|
$0
|
$
|
443,696
|
|
$
|
147,900
|
|
$
|
375,000
|
|
$
|
10,347
|
|
$
|
35,165
|
|
$
|
1,504,275
|
|
|
John A. Utz
Executive Vice President,
Head of Corporate Banking and Milwaukee Market President
|
2019
|
$
|
434,167
|
|
$0
|
$
|
391,514
|
|
$
|
130,499
|
|
$
|
445,000
|
|
$
|
12,217
|
|
$
|
61,225
|
|
$
|
1,474,622
|
|
2018
|
$
|
425,000
|
|
$0
|
$
|
382,471
|
|
$
|
127,496
|
|
$
|
530,000
|
|
$
|
11,218
|
|
$
|
56,716
|
|
$
|
1,532,901
|
|
|
2017
|
$
|
425,000
|
|
$0
|
$
|
382,486
|
|
$
|
127,497
|
|
$
|
350,000
|
|
$
|
10,416
|
|
$
|
48,436
|
|
$
|
1,343,835
|
|
|
Randall J. Erickson
Executive Vice President,
General Counsel & Corporate Secretary
|
2019
|
$
|
460,000
|
|
$0
|
$
|
344,985
|
|
$
|
114,998
|
|
$
|
345,000
|
|
$
|
11,191
|
|
$
|
56,518
|
|
$
|
1,332,692
|
|
2018
|
$
|
460,000
|
|
$0
|
$
|
413,972
|
|
$
|
137,999
|
|
$
|
410,000
|
|
$
|
10,358
|
|
$
|
57,254
|
|
$
|
1,489,583
|
|
|
2017
|
$
|
460,000
|
|
$0
|
$
|
413,986
|
|
$
|
137,998
|
|
$
|
275,000
|
|
$
|
9,688
|
|
$
|
53,329
|
|
$
|
1,350,001
|
|
|
David L. Stein
Executive Vice President,
Head of Consumer & Business Banking
|
2019
|
$
|
395,000
|
|
$0
|
$
|
296,233
|
|
$
|
98,748
|
|
$
|
300,000
|
|
$
|
15,509
|
|
$
|
56,085
|
|
$
|
1,161,575
|
|
2018
|
$
|
395,000
|
|
$0
|
$
|
296,238
|
|
$
|
98,748
|
|
$
|
340,000
|
|
$
|
14,316
|
|
$
|
50,095
|
|
$
|
1,194,397
|
|
|
2017
|
$
|
395,000
|
|
$0
|
$
|
296,226
|
|
$
|
98,746
|
|
$
|
225,000
|
|
$
|
13,343
|
|
$
|
47,511
|
|
$
|
1,075,826
|
|
(1)
|
Stock and Option Awards reflect the aggregate grant date fair value of awards with the grant date fair value for performance-based RSUs calculated at the target level. For further discussion and details regarding the accounting treatment and underlying assumptions relative to stock-based compensation, see Note 11, “Stock-Based Compensation,” of the Notes to Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data,” of our 2019 Form 10-K. The grant date fair value of the 2019 performance based RSU awards at the maximum level is $1,968,728, $454,484, $391,514, $344,985, and $296,233 for Mr. Flynn, Mr. Del Moral-Niles, Mr. Utz, Mr. Erickson and Mr. Stein, respectively.
|
(2)
|
Amounts reported in this column reflect incentive awards provided under the “Management Incentive Plan,” described in the “Annual Total Compensation - Annual Incentive Award” section beginning on page 37.
|
(3)
|
Reflects the change in present value of the Retirement Account Plan (“RAP”). Further details regarding the RAP can be found in the “Retirement Plans” section beginning on page 43 and in the Pension Benefits in 2019 table on page 49.
|
(4)
|
Amounts in All Other Compensation for 2019 include the following:
|
•
|
Employer match on each participating NEO’s 2019 contributions to the 401(k) Plan;
|
•
|
2019 employer contributions to the SERP for each of the NEOs. Additional details regarding the SERP can be found in the “Retirement Plans” section beginning on page 43 and in the Nonqualified Deferred Compensation in 2019 table on page 49;
|
•
|
Employer payment of financial planning services;
|
•
|
Employer payment of social and similar club dues for Messrs. Utz, Erickson and Stein and a corporate club membership for which Mr. Erickson is the named member; and
|
•
|
Employer payment of executive physicals for Mr. Flynn and Mr. Stein.
|
Name
|
401(k) Match
|
SERP Contribution
|
Financial Planning Services
|
Social and Similar Club Dues
|
Executive Physicals
|
Philip B.Flynn
|
$14,000
|
$244,624
|
$13,275
|
—
|
$3,500
|
Christopher J. Del Moral-Niles
|
$14,000
|
$25,520
|
—
|
—
|
—
|
John A. Utz
|
$14,000
|
$29,140
|
$13,275
|
$4,810
|
—
|
Randall J. Erickson
|
$14,000
|
$26,855
|
$13,275
|
$2,388
|
—
|
David L. Stein
|
$14,000
|
$23,120
|
$13,275
|
$2,090
|
$3,600
|
(5)
|
For a description of the elements of executive compensation and the various factors affecting compensation levels, please see the “Executive Compensation - Compensation Discussion and Analysis” section beginning on page 30.
|
GRANTS OF PLAN-BASED AWARDS DURING 2019
|
|
|
Estimated Future Payouts
Under Non-Equity
Incentive Plan Awards(1)
|
Estimated Future Payouts
Under Equity
Incentive Plan Awards(2)
|
All Other Stock Awards: Number of Shares of Stock
(#)
|
All Other Option Awards: Number of Securities Underlying Options
(#)
|
Exercise or Base Price of Option Awards
($/Sh)
|
Grant Date Fair Value of Stock and Option Awards
($)(3)
|
||||||
Name
|
Grant Date
|
Threshold
($)
|
Target
($)
|
Maximum
($)
|
Threshold
(#)
|
Target
(#)
|
Maximum
(#)
|
||||||
Philip B. Flynn
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
169,857
|
22.01
|
$
|
656,248
|
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
29,816
|
—
|
—
|
656,250
|
|
||
2/5/2019
|
—
|
—
|
—
|
—
|
59,631
|
89,446
|
—
|
—
|
—
|
1,312,478
|
|
||
|
|
—
|
1,161,170
|
1,393,404
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
Christopher J.
Del Moral-Niles
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
39,212
|
22.01
|
$
|
151,497
|
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
6,883
|
—
|
—
|
151,495
|
|
||
2/5/2019
|
—
|
—
|
—
|
—
|
13,766
|
20,649
|
—
|
—
|
—
|
302,990
|
|
||
|
|
—
|
540,000
|
648,000
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
John A. Utz
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
33,777
|
22.01
|
$
|
130,499
|
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
5,930
|
—
|
—
|
130,519
|
|
||
2/5/2019
|
—
|
—
|
—
|
—
|
11,858
|
17,787
|
—
|
—
|
—
|
260,995
|
|
||
|
|
—
|
530,000
|
636,000
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
Randall J. Erickson
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
29,765
|
22.01
|
$
|
114,998
|
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
5,225
|
—
|
—
|
115,002
|
|
||
2/5/2019
|
—
|
—
|
—
|
—
|
10,449
|
15,673
|
—
|
—
|
—
|
229,982
|
|
||
|
|
—
|
410,000
|
492,000
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
David L. Stein
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
25,559
|
22.01
|
$
|
98,748
|
|
2/5/2019
|
—
|
—
|
—
|
—
|
—
|
—
|
4,486
|
—
|
—
|
98,737
|
|
||
2/5/2019
|
—
|
—
|
—
|
—
|
8,973
|
13,459
|
—
|
—
|
—
|
197,496
|
|
||
|
|
—
|
340,000
|
408,000
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
(1)
|
Reflects annual incentive opportunities under the 2019 MIP. Amounts shown in the target column are equal to the amounts paid under the MIP for 2019 which served as the base amounts used by the Committee for determining the annual incentive payments under the 2019 MIP. Amounts shown in the maximum column are equal to the maximum MIP opportunity which include a limited positive discretion of up to 20% for individual performance and no cap on negative adjustments. The 2019 MIP does not employ individual thresholds or maximums for purposes of determining the individual amounts payable under the plan, other than the $3 million annual individual limitation on cash awards under the terms of the 2017 Plan, the plan under which the 2019 MIP is administered. See “Annual Total Compensation - Annual Incentive Award” beginning on page 37 for additional details.
|
(2)
|
Reflects performance-based RSU grants made to the NEOs under the 2019 LTIPP. The threshold and maximum amounts represent the 0% and 150% limits within the LTIPP. See “Long-Term Incentive Compensation” beginning on page 40 for additional details.
|
(3)
|
See “Policies - Accounting and Tax Considerations” on page 45. For further discussion and details regarding the accounting treatment and underlying assumptions relative to stock-based compensation, see Note 11, “Stock-Based Compensation,” of the Notes to Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data,” of Associated’s 2019 Form 10-K.
|
OUTSTANDING EQUITY AWARDS AT DECEMBER 31, 2019
|
|
Option Awards
|
|
Stock Awards
|
||||||
Name
|
Number of Securities Underlying Unexercised Options
(#)
Exercisable
|
Number of Securities Underlying Unexercised Options
(#)
Unexercisable
|
Option Exercise Price ($)
|
Option Expiration Date
|
|
Number of Shares or Units of Stock Held that Have Not Vested (#)
|
Market Value of Shares or Units of Stock Held That Have Not Vested ($)
|
Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)
|
Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not ($) Vested
|
|
(1)
|
(1)
|
|
(1)
|
|
|
(2)
|
(3)
|
(2)
|
|
|
|
|
|
|
|
|
|
|
Philip B. Flynn
|
139,747
|
—
|
$14.02
|
1/22/2023
|
|
8,990 (4)
|
$198,140
|
241,169
|
$5,315,365
|
|
161,369
|
—
|
$17.02
|
1/27/2024
|
|
12,401 (5)
|
$273,318
|
—
|
—
|
|
50,656
|
—
|
$17.67
|
3/17/2024
|
|
19,330 (6)
|
$426,033
|
—
|
—
|
|
211,236
|
—
|
$17.24
|
2/2/2025
|
|
37,729 (7)
|
$831,547
|
—
|
—
|
|
140,203
|
46,735
|
$17.38
|
2/1/2026
|
|
—
|
—
|
—
|
—
|
|
59,964
|
59,965
|
$25.20
|
2/6/2027
|
|
—
|
—
|
—
|
—
|
|
35,317
|
105,951
|
$24.25
|
2/6/2028
|
|
—
|
—
|
—
|
—
|
|
—
|
169,857
|
$22.01
|
2/5/2029
|
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
Christopher J.
|
32,504
|
10,835
|
$17.38
|
2/1/2026
|
|
2,085 (4)
|
$45,953
|
56,997
|
$1,256,214
|
Del Moral-Niles
|
14,190
|
14,190
|
$25.20
|
2/6/2027
|
|
2,935 (5)
|
$64,687
|
—
|
—
|
|
8,560
|
25,683
|
$24.25
|
2/6/2028
|
|
4,686 (6)
|
$103,279
|
—
|
—
|
|
—
|
39,212
|
$22.01
|
2/5/2029
|
|
10,563 (7)
|
$232,809
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
John A. Utz
|
2,000
|
—
|
$12.97
|
1/23/2022
|
|
1,834 (4)
|
$40,421
|
48,737
|
$1,074,163
|
|
12,659
|
—
|
$14.02
|
1/22/2023
|
|
2,530 (5)
|
$55,761
|
—
|
—
|
|
14,755
|
—
|
$17.02
|
1/27/2024
|
|
3,943 (6)
|
$86,904
|
—
|
—
|
|
8,510
|
—
|
$17.67
|
3/17/2024
|
|
9,541 (7)
|
$210,284
|
—
|
—
|
|
39,543
|
—
|
$17.24
|
2/2/2025
|
|
—
|
—
|
—
|
—
|
|
28,601
|
9,534
|
$17.38
|
2/1/2026
|
|
—
|
—
|
—
|
—
|
|
12,232
|
12,233
|
$25.20
|
2/6/2027
|
|
—
|
—
|
—
|
—
|
|
7,204
|
21,614
|
$24.25
|
2/6/2028
|
|
—
|
—
|
—
|
—
|
|
—
|
33,777
|
$22.01
|
2/5/2029
|
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
Randall J. Erickson
|
26,335
|
—
|
$17.02
|
1/27/2024
|
|
1,985 (4)
|
$43,749
|
49,172
|
$1,083,751
|
|
8,267
|
—
|
$17.67
|
3/17/2024
|
|
2,738 (5)
|
$60,346
|
—
|
—
|
|
34,473
|
—
|
$17.24
|
2/2/2025
|
|
4,268 (6)
|
$94,067
|
—
|
—
|
|
30,957
|
10,319
|
$17.38
|
2/1/2026
|
|
8,019 (7)
|
$176,739
|
—
|
—
|
|
13,240
|
13,240
|
$25.20
|
2/6/2027
|
|
—
|
—
|
—
|
—
|
|
7,798
|
23,394
|
$24.25
|
2/6/2028
|
|
—
|
—
|
—
|
—
|
|
—
|
29,765
|
$22.01
|
2/5/2029
|
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
David L. Stein
|
15,617
|
—
|
$12.97
|
1/23/2022
|
|
1,421 (4)
|
$31,319
|
37,430
|
$824,957
|
|
24,332
|
—
|
$14.02
|
1/22/2023
|
|
1,960 (5)
|
$43,198
|
—
|
—
|
|
23,882
|
—
|
$17.02
|
1/27/2024
|
|
3,054 (6)
|
$67,310
|
—
|
—
|
|
7,497
|
—
|
$17.67
|
3/17/2024
|
|
6,803 (7)
|
$149,938
|
—
|
—
|
|
32,107
|
—
|
$17.24
|
2/2/2025
|
|
—
|
—
|
—
|
—
|
|
22,152
|
7,384
|
$17.38
|
2/1/2026
|
|
—
|
—
|
—
|
—
|
|
9,474
|
9,474
|
$25.20
|
2/6/2027
|
|
—
|
—
|
—
|
—
|
|
5,580
|
16,740
|
$24.25
|
2/6/2028
|
|
—
|
—
|
—
|
—
|
|
—
|
25,559
|
$22.01
|
2/5/2029
|
|
—
|
—
|
—
|
—
|
(1)
|
All options expiring in 2024, 2025, 2026, 2027, 2028, and 2029 vest in four equal annual installments beginning on the first anniversary following the grant date. All other options have a three-year stepped vesting schedule (34% of the original award vests on the first anniversary following the date of the grant and 33% vests on each of the second and third anniversaries following the date of the grant).
|
(2)
|
Market value based on the closing price of the Common Stock of $22.04 on December 31, 2019.
|
(3)
|
Includes actual 150.0% of the 2017 performance-based RSU grant, and maximum portion of 2018 and 2019 performance-based RSU grants.
|
(4)
|
Restricted stock scheduled to vest fully on February 8, 2020.
|
(5)
|
Restricted stock scheduled to vest in two equal installments on February 8, 2020 and February 8, 2021.
|
(6)
|
Restricted stock scheduled to vest in three equal installments on February 8, 2020, February 8, 2021, and February 8, 2022.
|
(7)
|
Restricted stock scheduled to vest in four equal installments on February 8, 2020, February 8, 2021, February 8, 2022, and February 8, 2023.
|
OPTION EXERCISES AND STOCK VESTED IN 2019
|
|
Option Awards
|
|
Stock Awards
|
|||
Name of Executive Officer
|
Number of Shares Acquired on Exercise or Vesting (#)
|
Value Realized on Exercise ($)
|
|
Number of Shares Acquired on Vesting
(#)(1)(3)(4)
|
Value Realized on Vesting
($)(2)(3)(4)
|
|
|
|
|
|
|
|
|
Philip B. Flynn
|
—
|
$0
|
|
142,605
|
|
$3,133,312
|
Christopher J. Del Moral-Niles
|
98,128
|
$541,679
|
|
30,506
|
|
$673,678
|
John A. Utz
|
—
|
$0
|
|
27,784
|
|
$611,888
|
Randall J. Erickson
|
—
|
$0
|
|
28,467
|
|
$628,464
|
David L. Stein
|
20,000
|
$176,166
|
|
21,581
|
|
$475,304
|
(1)
|
Amounts include the following numbers of shares of restricted stock for which restrictions lapsed in 2019: for Mr. Flynn - 24,496, Mr. Del Moral-Niles - 5,746, Mr. Utz - 4,845, Mr. Erickson - 4,886, and Mr. Stein - 3,816; and the following numbers of RSUs that vested in 2019: for Mr. Flynn - 118,109, Mr. Del Moral-Niles - 24,760, Mr. Utz - 22,939, Mr. Erickson - 23,581, and Mr. Stein - 17,765.
|
(2)
|
Value based on the closing price of Associated Common Stock on the date restrictions lapsed. Vested shares are subject to retention requirements under Associated’s security ownership guidelines.
|
(3)
|
The number of shares acquired on vesting and value realized on vesting include deferred stock: for Mr. Flynn - 118,109 ($2,584,602), Mr. Utz - 12,045 ($263,583) and Mr. Stein - 9,327 ($204,105). Note that although the table includes the deferred stock, the individuals will not actually receive the shares until the deferral period lapses in accordance with the plan documents and agreements.
|
(4)
|
Mr. Flynn became retirement eligible in October 2019 under the definitions of retirement eligibility in the 2017 Incentive Compensation Plan ("Plan") and was required to pay taxes on the value of unvested Restricted Stock Awards. All shares remain unvested under terms of the Plan and Mr. Flynn will not receive the shares or the value until the earlier of the scheduled vesting date or his retirement.
|
PENSION BENEFITS IN 2019
|
Name
|
Plan Name
|
Number of Years Credited Service
(#)
|
Present Value of Accumulated Benefit
($)
|
Payments During Last Fiscal Year
($)
|
|
|
|
|
|
Philip B. Flynn
|
RAP
|
10
|
$126,502
|
$0
|
Christopher J. Del Moral-Niles
|
RAP
|
9
|
$123,467
|
$0
|
John A. Utz
|
RAP
|
9
|
$126,502
|
$0
|
Randall J. Erickson
|
RAP
|
7
|
$94,756
|
$0
|
David L. Stein
|
RAP
|
14
|
$214,780
|
$0
|
NONQUALIFIED DEFERRED COMPENSATION IN 2019
|
Name
|
Plan
|
Executive Contributions in 2019
($)
|
Registrant Contributions in 2019
($)(1)
|
Aggregate Earnings in 2019
($)
|
Aggregate Withdrawals/
Distributions
($)
|
Aggregate Balance at December 31, 2019
($)(2)
|
|
|
|
|
|
|
|
Philip B. Flynn
|
Flynn SERP
|
$0
|
$244,624
|
$1,070,705
|
$0
|
$4,611,617
|
Christopher J. Del Moral-Niles
|
SERP
|
$0
|
$25,520
|
$24,700
|
$0
|
$160,475
|
John A. Utz
|
SERP
|
$0
|
$29,140
|
$48,058
|
$0
|
$290,896
|
Randall J. Erickson
|
SERP
|
$0
|
$26,855
|
$28,280
|
$0
|
$232,545
|
David L. Stein
|
SERP
|
$0
|
$23,120
|
$97,441
|
$0
|
$451,481
|
(1)
|
For Mr. Flynn, these amounts reflect contributions made by Associated throughout the year during 2019 based on his 2019 compensation. For the other NEOs, these amounts reflect contributions made by Associated in 2020 based on their 2019 compensation. These amounts are reported in the “All Other Compensation” column for each executive officer in the Summary Compensation Table.
|
(2)
|
Of the amounts disclosed in this column with respect to the Flynn SERP or the SERP, the following amounts were reported in the Summary Compensation Table in prior years: Mr. Flynn - $2,045,161; Mr. Del Moral-Niles - $183,959; Mr. Utz - $151,102; Mr. Erickson - $160,914; and Mr. Stein - $40,450.
|
Name of Fund
|
Annual
Return (%)
|
Name of Fund
|
Annual
Return (%)
|
Vanguard Total Bond Market Index Fund Admiral Shares
|
8.71%
|
American Funds New World Fund® Class R-6
|
28.03%
|
Vanguard Institutional Index Fund Institutional Shares
|
31.46%
|
American Funds EuroPacific Growth Fund® Class R-6
|
27.40%
|
American Funds The Growth Fund of America® Class R-6
|
28.54%
|
Templeton Foreign Fund Class R6
|
13.04%
|
Dodge & Cox Stock Fund
|
24.83%
|
Fidelity® Government Money Market Fund
|
1.84%
|
Baird MidCap Fund Institutional Class
|
36.31%
|
Vanguard Target Retirement 2020 Fund Investor Shares
|
17.63%
|
Virtus Ceredex Mid-Cap Value Equity Fund Class R6
|
33.31%
|
Vanguard Target Retirement 2025 Fund Investor Shares
|
19.63%
|
Wasatch Small Cap Growth Fund® Investor Class
|
40.15%
|
Vanguard Target Retirement 2030 Fund Investor Shares
|
21.07%
|
Janus Henderson Small Cap Value Fund Class I
|
26.11%
|
Vanguard Target Retirement 2035 Fund Investor Shares
|
22.44%
|
Vanguard Extended Market Index Fund Admiral Shares
|
28.03%
|
Vanguard Target Retirement 2040 Fund Investor Shares
|
23.86%
|
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE OF CONTROL
|
•
|
a multiple (three for Mr. Flynn and two for each other executive) of the sum of the executive’s then-current base salary and target cash incentive (or, if higher, the base salary and/or target cash incentive as in effect immediately prior to the Change of Control);
|
•
|
a prorated cash incentive for the year in which the date of termination occurs based on the executive’s then-current target cash incentive (or, if higher, the target cash incentive as in effect immediately prior to the Change of Control) (the “Prorated Cash Incentive”);
|
•
|
an amount equal to a multiple (36 for Mr. Flynn and 24 for each other executive) of the sum of the monthly COBRA premium for the medical and dental coverage in effect for the executive on the date of termination and the monthly premiums in respect of the life insurance in effect for the executive on the date of termination;
|
•
|
an amount equal to the maximum employer contributions under the Company’s 401(k) and ESOP and SERP (and, for Mr. Flynn, his individual SERP) and an amount equal to the maximum benefit that the executive would have accrued under the Retirement Account Plan and SERP (and, for Mr. Flynn, his individual SERP), in each case, assuming that the executive remained employed for a period of months following the date of termination (36 for Mr. Flynn and 24 for each other executive) and certain other assumptions specified in the 2018 COC Agreement; and
|
•
|
outplacement benefits.
|
Name
|
Total Salary Continuation Benefit(1)
|
Medical, Dental, Life Insurance Benefits for the Duration of Payments(2)
|
Accrued Vacation(3)
|
Retirement Plan Contributions, Including the RAP, 401(k) and SERP
|
Incentive Bonus
|
Outplacement Benefit(4)
|
Total Value of Shares of Restricted Stock and Restricted Stock Units(5)
|
Total Value of Options(6)
|
Total
|
Philip B. Flynn
|
$3,750,000
|
$3,510
|
$24,038
|
$801,073
|
$3,483,510
|
$40,000
|
$6,062,585
|
$222,881
|
$14,387,597
|
Christopher J. Del Moral-Niles
|
$1,010,000
|
$42,017
|
$9,712
|
$95,840
|
$1,080,000
|
$40,000
|
$1,471,292
|
$51,667
|
$3,800,528
|
John A. Utz
|
$870,000
|
$51,189
|
$8,365
|
$103,080
|
$1,060,000
|
$40,000
|
$1,270,423
|
$45,442
|
$3,448,499
|
Randall J. Erickson
|
$920,000
|
$33,853
|
$8,846
|
$98,510
|
$820,000
|
$40,000
|
$1,269,960
|
$48,979
|
$3,240,148
|
David L. Stein
|
$790,000
|
$42,017
|
$7,596
|
$91,040
|
$680,000
|
$40,000
|
$966,241
|
$35,176
|
$2,652,070
|
(1)
|
Based on base salary at December 31, 2019.
|
(2)
|
Based on program costs at December 31, 2019.
|
(3)
|
Maximum unused vacation accrual is 40 hours at year-end pursuant to Associated’s policy.
|
(4)
|
The Change of Control Plan provides that outplacement services at the senior management and executive level, commensurate with the eligible colleague’s duties, shall be provided by a mutually agreed outplacement agency. $40,000 is an estimate of the actual cost of these outplacement services.
|
(5)
|
Value based on closing price of Associated Banc-Corp Common Stock of $22.04 on December 31, 2019. This includes the value of all unvested Restricted Stock and performance-based RSUs (illustrated at target), and any accrued dividend equivalent payments on all RSUs.
|
(6)
|
Value based on the closing price of the Common Stock of $22.04 on December 31, 2019.
|
Name
|
Stock Options
|
Restricted Stock
|
Restricted Stock Units(1)
|
Philip B. Flynn
|
$222,881
|
$1,729,038
|
$4,333,547
|
Christopher J. Del Moral-Niles
|
$51,667
|
$446,729
|
$1,024,563
|
John A. Utz
|
$45,442
|
$393,370
|
$877,053
|
Randall J. Erickson
|
$48,979
|
$374,900
|
$895,060
|
David L. Stein
|
$35,176
|
$291,766
|
$674,475
|
(1)
|
For performance-based RSUs, the value is assumed at target, including any accumulated dividend equivalents.
|
▪
|
The median of the annual total compensation of all colleagues of our Company was $53,222; and
|
▪
|
The annual total compensation of Mr. Flynn, our Chief Executive Officer, was $5,140,297.
|
1.
|
As of December 31, 2019, our determination date, our colleague population consisted of approximately 5,743 individuals (with all of these individuals located in the United States), including any full-time, part-time, temporary, or seasonal colleagues employed on that date.
|
2.
|
To find the median of the annual total compensation of all our colleagues, we used wages from our payroll records as reported to the Internal Revenue Service on Form W-2 for fiscal 2019. In making this determination, we annualized the compensation of full-time and part-time permanent colleagues who were employed on December 31, 2019, but did not work for us the entire year. No full-time equivalent adjustments were made for part time colleagues.
|
3.
|
We identified an initial median colleague using this compensation measure and methodology, which was consistently applied to all our colleagues included in the calculation.
|
4.
|
After identifying the median colleague, we added together all of the elements of such colleague’s compensation for 2019 in accordance with the requirements of Item 402(c)(2)(x) of Regulation S-K, resulting in annual total compensation of $53,222.
|
5.
|
With respect to the annual total compensation of our CEO, we used the amount reported in the “Total” column of our 2019 Summary Compensation Table.
|
•
|
$75,000 annual retainer (with no additional meeting fees for meetings of the Board or standing committees thereof)
|
•
|
RSUs with a fair market value of $120,000 are granted annually on February 1 of each year. A director joining the Board after February 1 receives a prorated RSU
|
•
|
$100,000 additional retainer for the non-executive Chairman
|
•
|
$30,000 additional retainer for the Vice Chairman
|
•
|
$10,000 additional retainer for the Chairs of the Audit Committee, Compensation and Benefits Committee, Corporate Development Committee, Corporate Governance Committee, Enterprise Risk Committee, and Trust Committee
|
•
|
$1,500 ad hoc committee meeting fee (when and if such a committee is convened)
|
DIRECTORS’ DEFERRED COMPENSATION PLAN
|
DIRECTOR COMPENSATION IN 2019
|
Name
|
Fees Earned or Paid in Cash
($)
|
Stock Awards
($)
|
Option Awards
($)
|
Non-Equity Incentive Plan Compensation
($)
|
Change in Pension Value and Non-Qualified Deferred Compensation Earnings
($)
|
All Other Compensation
($)
|
Total
($)
|
|
|
|
|
|
|
|
|
John F. Bergstrom
|
$75,000
|
$120,000
|
$0
|
$0
|
$0
|
$0
|
$195,000
|
Michael T. Crowley, Jr.
|
75,000
|
120,000
|
0
|
0
|
0
|
0
|
195,000
|
R. Jay Gerken
|
85,000
|
120,000
|
0
|
0
|
0
|
0
|
205,000
|
Judith P. Greffin
|
75,000
|
120,000
|
0
|
0
|
0
|
0
|
195,000
|
Michael J. Haddad
|
56,250
|
120,000
|
0
|
0
|
0
|
0
|
176,250
|
William R. Hutchinson
|
175,000
|
120,000
|
0
|
0
|
0
|
0
|
295,000
|
Robert A. Jeffe
|
75,000
|
120,000
|
0
|
0
|
0
|
0
|
195,000
|
Eileen A. Kamerick
|
85,000
|
120,000
|
0
|
0
|
0
|
0
|
205,000
|
Gale E. Klappa
|
75,000
|
120,000
|
0
|
0
|
0
|
0
|
195,000
|
Richard T. Lommen
|
85,000
|
120,000
|
0
|
0
|
0
|
0
|
205,000
|
Cory L. Nettles
|
75,000
|
120,000
|
0
|
0
|
0
|
0
|
195,000
|
Karen T. van Lith
|
85,000
|
120,000
|
0
|
0
|
0
|
0
|
205,000
|
John (Jay) B. Williams
|
107,500
|
120,000
|
0
|
0
|
0
|
0
|
227,500
|
RELATED PARTY TRANSACTION POLICIES AND PROCEDURES
|
FEES PAID TO INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
|
2019
|
|
2018
|
||||
Audit Fees(1)
|
$
|
1,800,000
|
|
(4)
|
$
|
1,980,000
|
|
Audit-Related Fees(2)
|
97,600
|
|
|
94,100
|
|
||
Tax Fees(3)
|
223,437
|
|
|
385,982
|
|
||
All Other Fees
|
—
|
|
|
—
|
|
||
Total Fees
|
$
|
2,121,037
|
|
|
$
|
2,460,082
|
|
(1)
|
Audit fees include those necessary to perform the audit and quarterly reviews of Associated’s consolidated financial statements. In addition, audit fees include audit or other attest services required by statute or regulation, such as comfort letters, consents, reviews of SEC filings, and reports on internal controls and audit-related expenses.
|
(2)
|
Audit-related fees consist principally of fees for recurring and required financial statement audits of certain subsidiaries.
|
(3)
|
Tax Fees consist primarily of fees for an engagement related to Research and Development Tax Credits.
|
(4)
|
Fee excludes amounts to be billed for expenses, which will be billed at the completion of the audit based on actual amounts incurred, not to exceed $95,000.
|
RECOMMENDATION OF THE BOARD OF DIRECTORS
|
|
|
|
Page
|
Section 1. Establishment, Purpose and Duration
|
A-1
|
||
|
1.1.
|
Effective Date and Purpose
|
A-1
|
|
1.2.
|
Duration of the Plan
|
A-1
|
Section 2. Definitions
|
A-1
|
||
|
2.1.
|
“Annual Incentive Award”
|
A-1
|
|
2.2.
|
“Award”
|
A-1
|
|
2.3.
|
“Award Agreement”
|
A-1
|
|
2.4.
|
“Beneficiary”
|
A-1
|
|
2.5.
|
“Board”
|
A-1
|
|
2.6.
|
“Bonus Opportunity”
|
A-1
|
|
2.7.
|
“Cause”
|
A-1
|
|
2.8.
|
“Change in Control”
|
A-2
|
|
2.9.
|
“Code”
|
A-3
|
|
2.10.
|
“Committee”
|
A-3
|
|
2.11.
|
“Common Stock”
|
A-4
|
|
2.12.
|
“Company”
|
A-4
|
|
2.13.
|
“Compensation Limitations”
|
A-4
|
|
2.14.
|
“Deferred Compensation Award”
|
A-4
|
|
2.15.
|
“Deferred Stock”
|
A-4
|
|
2.16.
|
“Disability”
|
A-4
|
|
2.17.
|
“Dividend Equivalent”
|
A-4
|
|
2.18.
|
“Early Retirement”
|
A-4
|
|
2.19.
|
“Effective Date”
|
A-4
|
|
2.20.
|
“Eligible Person”
|
A-4
|
|
2.21.
|
“Employer”
|
A-4
|
|
2.22.
|
“Employment Agreement”
|
A-4
|
|
2.23.
|
“Exchange Act”
|
A-4
|
|
2.24.
|
“Exercise Date”
|
A-4
|
|
2.25.
|
“Fair Market Value”
|
A-4
|
|
2.26.
|
“Grant Date”
|
A-5
|
|
2.27.
|
“Grantee”
|
A-5
|
|
2.28.
|
“Incentive Stock Option”
|
A-5
|
|
2.29.
|
“including”
|
A-5
|
|
2.30.
|
“Non-Qualified Stock Option”
|
A-5
|
|
2.31.
|
“Normal Retirement”
|
A-5
|
|
2.32.
|
“Option”
|
A-5
|
|
2.33.
|
“Option Price”
|
A-5
|
|
2.34.
|
“Performance Goal”
|
A-5
|
|
2.35.
|
“Performance Measures”
|
A-5
|
|
2.36.
|
“Performance Period”
|
A-5
|
|
2.37.
|
“Performance Unit”
|
A-5
|
|
2.38.
|
“Person”
|
A-5
|
|
2.39.
|
“Plan”
|
A-5
|
|
2.40.
|
“Restricted Stock”
|
A-5
|
|
2.41.
|
“Restricted Stock Unit or “RSU”
|
A-5
|
|
2.42.
|
“Restrictions”
|
A-6
|
|
2.43.
|
“Rule 16b-3”
|
A-6
|
|
2.44.
|
“SEC”
|
A-6
|
|
2.45.
|
“Section 16 Nonemployee Director”
|
A-6
|
|
2.46.
|
“Section 16 Person”
|
A-6
|
|
2.47.
|
“Settlement Date”
|
A-6
|
|
2.48.
|
“Share”
|
A-6
|
|
2.49.
|
“Stock Appreciation Right” or “SAR”
|
A-6
|
|
2.50.
|
“Strike Price”
|
A-6
|
|
2.51.
|
“Subsidiary”
|
A-6
|
|
2.52.
|
“Substitute Award”
|
A-6
|
|
2.53.
|
“Term”
|
A-6
|
|
2.54.
|
“Termination of Service”
|
A-6
|
|
2.55.
|
“Year”
|
A-6
|
Section 3. Administration
|
A-7
|
||
|
3.1.
|
Committee
|
A-7
|
|
3.2.
|
Powers of the Committee
|
A-7
|
Section 4. Awards and Shares Subject to the Plan and Adjustments
|
A-8
|
||
|
4.1.
|
Number of Shares Available for Grants
|
A-8
|
|
4.2.
|
Adjustments in Authorized Shares and Awards
|
A-9
|
|
4.3.
|
Adjustments and Limitations
|
A-9
|
|
4.4.
|
Performance Measures
|
A-10
|
Section 5. Eligibility and General Conditions of Awards
|
A-11
|
||
|
5.1.
|
Eligibility
|
A-11
|
|
5.2.
|
Award Agreement
|
A-11
|
|
5.3.
|
General Terms and Termination of Service
|
A-11
|
|
5.4.
|
Non-transferability of Awards
|
A-12
|
|
5.5.
|
Cancellation and Rescission of Awards
|
A-13
|
|
5.6.
|
Substitute Awards
|
A-13
|
|
5.7.
|
Exercise by Non-Grantee
|
A-13
|
|
5.8.
|
No Cash Consideration for Awards
|
A-13
|
Section 6. Stock Options
|
A-13
|
||
|
6.1.
|
Grant of Options
|
A-13
|
|
6.2.
|
Award Agreement
|
A-13
|
|
6.3.
|
Option Price
|
A-14
|
|
6.4.
|
Vesting
|
A-14
|
|
6.5.
|
Grant of Incentive Stock Options
|
A-14
|
|
6.6.
|
Exercise and Payment
|
A-15
|
Section 7. Stock Appreciation Rights
|
A-15
|
||
|
7.1.
|
Grant of SARs
|
A-15
|
|
7.2.
|
Award Agreements
|
A-15
|
|
7.3.
|
Strike Price
|
A-16
|
|
7.4.
|
Vesting
|
A-16
|
|
7.5.
|
Exercise and Payment
|
A-16
|
|
7.6.
|
Grant Limitations
|
A-16
|
Section 8. Restricted Stock
|
A-16
|
||
|
8.1.
|
Grant of Restricted Stock
|
A-16
|
|
8.2.
|
Award Agreement
|
A-16
|
|
8.3.
|
Consideration for Restricted Stock
|
A-16
|
|
8.4.
|
Vesting
|
A-16
|
|
8.5.
|
Effect of Forfeiture
|
A-16
|
|
8.6.
|
Escrow; Legends
|
A-16
|
|
8.7.
|
Shareholder Rights in Restricted Stock
|
A-16
|
Section 9. Restricted Stock Units
|
A-17
|
||
|
9.1.
|
Grant of Restricted Stock Units
|
A-17
|
|
9.2.
|
Award Agreement
|
A-17
|
|
9.3.
|
Crediting Restricted Stock Units
|
A-17
|
Section 10. Deferred Stock
|
A-17
|
||
|
10.1.
|
Grant of Deferred Stock
|
A-17
|
|
10.2.
|
Award Agreement
|
A-18
|
|
10.3.
|
Deferred Stock Elections
|
A-18
|
|
10.4.
|
Deferral Account
|
A-18
|
Section 11. Performance Units
|
A-19
|
||
|
11.1.
|
Grant of Performance Units
|
A-19
|
|
11.2.
|
Value/Performance Goals
|
A-19
|
|
11.3.
|
Earning of Performance Units
|
A-19
|
|
11.4.
|
Adjustment on Change of Position
|
A-19
|
Section 12. Annual Incentive Awards
|
A-19
|
||
|
12.1.
|
Annual Incentive Awards
|
A-19
|
|
12.2.
|
Determination of Amount of Annual Incentive Awards
|
A-19
|
|
12.3.
|
Time of Payment of Annual Incentive Awards
|
A-20
|
|
12.4.
|
Form of Payment of Annual Incentive Awards
|
A-20
|
Section 13. Dividend Equivalents
|
A-20
|
||
Section 14. Change in Control
|
A-20
|
||
|
14.1.
|
Acceleration of Vesting
|
A-20
|
|
14.2.
|
Special Treatment in the Event of a Change in Control
|
A-20
|
Section 15. Amendments and Termination
|
A-21
|
||
|
15.1.
|
Amendment and Termination
|
A-21
|
|
15.2.
|
Previously Granted Awards
|
A-21
|
Section 16. Beneficiary Designation
|
A-21
|
||
Section 17. Withholding
|
A-21
|
||
|
17.1.
|
Required Withholding
|
A-21
|
|
17.2.
|
Notification under Code Section 83(b)
|
A-22
|
Section 18. General Provisions
|
A-22
|
||
|
18.1.
|
Governing Law
|
A-22
|
|
18.2.
|
Severability
|
A-22
|
|
18.3.
|
Successors
|
A-22
|
|
18.4.
|
Requirements of Law
|
A-22
|
|
18.5.
|
Securities Law Compliance
|
A-22
|
|
18.6.
|
Section 409A
|
A-22
|
|
18.7.
|
Mitigation of Excise Tax
|
A-23
|
|
18.8.
|
No Rights as a Shareholder
|
A-23
|
|
18.9.
|
Awards Not Taken into Account for Other Benefits
|
A-23
|
|
18.10.
|
Employment Agreement Supersedes Award Agreement
|
A-23
|
|
18.11.
|
Non-Exclusivity of Plan
|
A-23
|
|
18.12.
|
No Trust or Fund Created
|
A-24
|
|
18.13.
|
No Right to Continued Employment or Awards
|
A-24
|
|
18.14.
|
Military Service
|
A-24
|
|
18.15.
|
Construction
|
A-24
|
|
18.16.
|
No Fractional Shares
|
A-24
|
|
18.17.
|
Plan Document Controls
|
A-24
|
|
18.18.
|
Compensation Limitations
|
A-24
|
(A)
|
a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock;
|
(B)
|
an entity, fifty percent (50%) or more of the total Fair Market Value or voting power of which is owned, directly or indirectly, by the Company;
|
(C)
|
a Person, or more than one Person acting as a Group, that owns, directly or indirectly, fifty percent (50%) or more of the total Fair Market Value or voting power of all the outstanding stock of the Company; or
|
(D)
|
an entity, at least fifty percent (50%) of the total Fair Market Value or voting power of which is owned, directly or indirectly, by a Person described in Section 2.8(b)(iii)(C).
|
(i)
|
Earnings before any or all of interest, tax, depreciation or amortization (actual and adjusted and either in the aggregate or on a per-Share basis);
|
(ii)
|
Earnings (either in the aggregate or on a per-Share basis);
|
(iii)
|
Net income or loss (either in the aggregate or on a per-Share basis);
|
(iv)
|
Operating profit;
|
(v)
|
Cash flow (either in the aggregate or on a per-Share basis);
|
(vi)
|
Free cash flow (either in the aggregate on a per-Share basis);
|
(vii)
|
Capital ratio (either Common Equity Tier 1 or other);
|
(viii)
|
Non-interest expense;
|
(ix)
|
Costs;
|
(x)
|
Gross revenues;
|
(xi)
|
Deposit growth;
|
(xii)
|
Loan loss provisions;
|
(xiii)
|
Reductions in expense levels;
|
(xiv)
|
Risk adjusted return on capital;
|
(xv)
|
Operating and maintenance cost management and employee productivity;
|
(xvi)
|
Share price or total shareholder return (including growth measures and total shareholder return or attainment by the Shares of a specified value for a specified period of time);
|
(xvii)
|
Net economic value;
|
(xviii)
|
Nonperforming asset ratio;
|
(xix)
|
Net charge-off ratio;
|
(xx)
|
Net interest margin;
|
(xxi)
|
Economic value added or economic value added momentum;
|
(xxii)
|
Aggregate product unit and pricing targets;
|
(xxiii)
|
Strategic business criteria, consisting of one or more objectives based on meeting specified revenue, sales, credit quality, loan quality, market share, market penetration, geographic business expansion goals, objectively identified project milestones, production volume levels, cost targets and goals relating to acquisitions or divestitures;
|
(xxiv)
|
Return on average assets or average equity;
|
(xxv)
|
Achievement of objectives relating to diversity, employee turnover or other human capital metrics;
|
(xxvi)
|
Results of customer satisfaction surveys or other objective measures of customer experience; and/or
|
(xxvii)
|
Debt ratings, debt leverage and debt service;
|