5.
|
consider such other business as may properly come before the Annual Meeting or any adjournment or postponement of the Annual Meeting.
|
•
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election of eleven directors to our Board of Directors, each for a term of one year (see page 15);
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•
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ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for the 2017 fiscal year (see page 20);
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•
|
an advisory vote to approve the compensation of our named executive officers as disclosed in this proxy statement (see page 21); and
|
•
|
an advisory vote on the frequency of future advisory votes on named executive officer compensation (see page 23).
|
•
|
view our proxy materials for the Annual Meeting via the Internet; and
|
•
|
instruct us to send our future proxy materials to you electronically by email.
|
(1)
|
deliver a written notice of revocation to our Secretary at Covanta Holding Corporation, 445 South Street, Morristown, New Jersey 07960; or
|
(2)
|
submit a properly executed proxy bearing a later date; or
|
(3)
|
attend the Annual Meeting and cast your vote in person.
|
•
|
"FOR" election of the eleven nominees for director;
|
•
|
"FOR" ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for the 2017 fiscal year;
|
•
|
"FOR" an advisory vote to approve the compensation of our named executive officers as disclosed in this proxy statement; and
|
•
|
"ONE YEAR" with respect to an advisory vote on the frequency of future advisory votes on named executive officer compensation.
|
Name
|
Audit
|
Compensation
|
Nominating and Governance
|
Finance
|
Public Policy and Technology
|
Sam Zell (Chair)
|
|
|
|
|
|
David M. Barse
|
X, FE
|
|
C
|
X
|
|
Ronald J. Broglio
|
|
|
X
|
|
VC
|
Peter C.B. Bynoe
|
|
C
|
X
|
|
|
Linda J. Fisher
|
|
|
X
|
|
C
|
Joseph M. Holsten
|
X, FE
|
|
|
X
|
|
Stephen J. Jones
|
|
|
|
|
|
Anthony J. Orlando
|
|
|
|
X
|
X
|
Danielle Pletka
|
|
|
|
|
X
|
Michael W. Ranger
|
X, FE
|
|
|
X
|
|
Robert S. Silberman
|
X, FE
|
X
|
|
C
|
|
Jean Smith
|
C, FE
|
X
|
X
|
|
|
2016 Meetings
|
4
|
5
|
4
|
4
|
4
|
2016 Actions by Unanimous Written Consent
|
|
1
|
|
|
|
C = Chair
|
|
|
|
|
|
FE = Financial Expert
|
|
|
|
|
|
VC = Vice Chair
|
|
|
|
|
|
X = Member
|
|
|
|
|
|
(1)
|
to review and approve the Company’s goals relating to the chief executive officer’s compensation, evaluate the chief executive officer’s performance under those goals and set the chief executive officer’s compensation;
|
(2)
|
to evaluate, review and approve the compensation structure and process for our other officers and the officers of our subsidiaries;
|
(3)
|
to evaluate, review and recommend to our Board any changes to, or additional, stock-based and other incentive compensation plans;
|
(4)
|
to engage independent advisors to assist the members of the Compensation Committee in carrying out their duties; and
|
(5)
|
to recommend inclusion of the Compensation Discussion and Analysis in this proxy statement and our Annual Report on Form 10-K.
|
•
|
The Nominating and Governance Committee evaluates Board effectiveness, succession planning, enterprise risk management and general corporate best practices;
|
•
|
Operational risk management is overseen by the full Board and the Finance Committee with respect to the Company’s key initiatives affecting its operations base business performance and by the Compensation Committee with respect to attracting, retaining and motivating talented employees and by tying compensation awards to actual performance;
|
•
|
The Public Policy and Technology Committee oversees policy and regulatory risk, as well as risks in the areas of safety and environmental compliance, through an ongoing dialog with management, it also plays a role in operational risk management, and oversees risk associated with managing existing technologies and developing new technologies to enhance and protect our competitive advantage;
|
•
|
The Finance and Audit Committees play key roles in the oversight of financial and market risk, currency risk, balance sheet risk and capital allocation, liquidity and tax risk; and
|
•
|
Overall ethics, policy and compliance risk is also overseen by the Audit Committee and the Nominating and Governance Committee.
|
•
|
supporting our customers in achieving zero waste to landfills goals, and increasing wastes avoided, recycled or reused;
|
•
|
expanding our offering in sustainable waste management solutions; and
|
•
|
recovering materials through expanded recycling and metals recovery efforts, including through the development of new systems to extract metals and other materials from our ash residues for recycling and reuse.
|
•
|
Rx4Safety
- Launched in 2010 and designed to provide a disposal option to help combat improper use and disposal of pharmaceuticals, Rx4Safety has provided for the safe disposal and destruction of over 3 million pounds of medications;
|
•
|
Fishing for Energy
- A national program that provides commercial fishermen with cost-free opportunities to dispose of derelict and retired fishing gear while offering grant support for direct assessment, prevention and removal efforts, with more than 3 million pounds collected to date for recycling and energy recovery;
|
•
|
Mercury Collection
- Through mercury awareness and collection programs, we help educate the public about the proper handling and disposal of mercury-containing goods, with more than 3,000 pounds of mercury collected and recycled to date; and
|
•
|
Go Green Initiative
- We provide financial support to this global environmental education program that trains teachers, school personnel and volunteers to conserve natural resources for future generations.
|
•
|
assessing the quality of written and oral presentations from management and recommendations for future reports or presentations to the Board and/or committees;
|
•
|
As a general rule, pledging of Covanta shares is not permitted without the prior approval of the Audit Committee;
|
•
|
For shares held in brokerage accounts, margin loans using Covanta common stock as collateral are prohibited;
|
•
|
A safe harbor is provided, permitting pledges if certain structural parameters are included in the pledge/loan arrangements that would both limit amounts pledged, and mitigate risk of a forced sale as a result of a decline in the market price of Covanta common stock, specifically:
|
•
|
No more than 40% of the total value of the stock collateral pledged in any arrangement may be in Covanta common stock (calculated at the time of pledge), to ensure diversification of collateral;
|
•
|
All loans must be compliant with the requirements of Federal Reserve Regulation U, limiting the amount of any such loan to a maximum 50% of the value of collateral, as measured at the time of borrowing;
|
•
|
Loan and pledge arrangements cannot contain provisions requiring automatic or forced sales, prior to notice and a cure period of not less than three business days between when specific loan-to-value thresholds are exceeded and when lenders have the right to exercise remedies under the pledge arrangement; and
|
•
|
The policy is applicable to all directors and executive officers and become effective upon adoption in December, 2015.
|
Name
|
|
Fees Earned
($)
|
|
Stock
Awards
(1)
($)
|
|
Total
($)
|
||||||
David M. Barse
|
|
$
|
76,500
|
|
|
$
|
73,395
|
|
|
$
|
149,895
|
|
Ronald J. Broglio
|
|
$
|
67,000
|
|
|
$
|
73,395
|
|
|
$
|
140,395
|
|
Peter C.B. Bynoe
|
|
$
|
73,500
|
|
|
$
|
73,395
|
|
|
$
|
146,895
|
|
Linda J. Fisher
|
|
$
|
67,000
|
|
|
$
|
73,395
|
|
|
$
|
140,395
|
|
Joseph M. Holsten
|
|
$
|
65,500
|
|
|
$
|
73,395
|
|
|
$
|
138,895
|
|
Anthony J. Orlando
|
|
$
|
63,500
|
|
|
$
|
73,395
|
|
|
$
|
136,895
|
|
William C. Pate
|
|
$
|
25,250
|
|
|
$
|
—
|
|
|
$
|
25,250
|
|
Danielle Pletka
(2)
|
|
$
|
16,666
|
|
|
$
|
42,263
|
|
|
$
|
58,929
|
|
Michael W. Ranger
(2)
|
|
$
|
16,666
|
|
|
$
|
42,263
|
|
|
$
|
58,929
|
|
Robert S. Silberman
|
|
$
|
70,750
|
|
|
$
|
73,395
|
|
|
$
|
144,145
|
|
Jean Smith
|
|
$
|
81,500
|
|
|
$
|
73,395
|
|
|
$
|
154,895
|
|
Samuel Zell
|
|
$
|
150,000
|
|
|
$
|
450,009
|
|
|
$
|
600,009
|
|
(1)
|
Each non-employee director, except for Ms. Pletka and Mr. Ranger, received an award of either shares of restricted stock or restricted stock units on May 5, 2016 that had a grant date fair value of $16.31 per share, as computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, “Compensation — Stock Compensation,” referred to in this proxy statement as “FASB ASC Topic 718.” The grant date fair value is computed using the closing price of shares on the grant date. For a discussion of valuation assumptions, see Note 17, “Stock-Based Award Plans,” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016.
|
(2)
|
Ms. Pletka and Mr. Ranger were appointed to the Board on September 22, 2016 and each received pro rata equity awards of restricted stock units. Such awards had a grant fair date value of $15.23 per share.
|
Director
|
|
Number of Unvested
Restricted Stock or Restricted Stock Unit Awards
Held as of December 31, 2016
(a) (b)
|
|
Number of Restricted
Stock or Restricted Stock Unit Awards Vested
During Fiscal Year
Ended December 31, 2016
|
||
David M. Barse
|
|
3,000
|
|
|
1,500
|
|
Ronald J. Broglio
|
|
4,500
|
|
|
4,500
|
|
Peter C.B. Bynoe
|
|
4,500
|
|
|
4,500
|
|
Linda J. Fisher
|
|
4,500
|
|
|
4,500
|
|
Joseph M. Holsten
|
|
4,500
|
|
|
4,500
|
|
Anthony J. Orlando
|
|
3,000
|
|
|
1,500
|
|
Danielle Pletka
|
|
1,850
|
|
|
925
|
|
Michael W. Ranger
|
|
1,850
|
|
|
925
|
|
Robert S. Silberman
|
|
4,500
|
|
|
4,500
|
|
Jean Smith
|
|
4,500
|
|
|
4,500
|
|
Samuel Zell
(c)
|
|
22,266
|
|
|
22,578
|
|
(a)
|
For each director except Ms. Pletka, Mr. Ranger and Mr. Zell, 1,500 shares of restricted stock or restricted stock units, as applicable, vested or vest on each of May 5, 2016, May 5, 2017 and May 5, 2018. For Ms. Pletka and Mr. Ranger, 925 restricted stock units vested or vest on each of September 22, 2016, May 5, 2017 and May 5, 2018.
|
(b)
|
Notwithstanding the vesting schedule attached to such restricted stock awards granted in 2016, all such restricted stock awards were considered to be vested for purposes of FASB ASC Topic 718.
|
(c)
|
For Mr. Zell, 9,197 restricted stock units vested or vest on each of May 5, 2016, May 5, 2017 and May 5, 2018.
|
•
|
non-employee directors other than the Chairman of the Board will receive an annual equity award equal to $100,000 in restricted stock or, upon election, restricted stock units, which will vest in full on the earlier of the next annual meeting of stockholders or the first anniversary of such award;
|
•
|
the Chairman of the Board will receive an annual equity award equal to $450,000 in restricted stock or, upon election, restricted stock units, which will vest in full on the earlier of the next annual meeting of stockholders or the first anniversary of such award;
|
•
|
non-employee directors other than the Chairman of the Board will receive an annual cash retainer of $70,000, while the Chairman of the Board will continue to receive an annual cash retainer fee of $150,000;
|
•
|
annual cash fees for committee chairs will be modified as follows: Audit Committee ($15,000), Compensation Committee ($10,000), and all other committees ($7,500);
|
•
|
individual meeting fees will be eliminated; and
|
•
|
all directors may elect to receive fees (annual fees and/or chair fees) in the form of restricted stock units in lieu of cash, with deferred conversion to shares of our common stock to a specified future date no later than such director’s termination of service on our Board.
|
|
|
Our Directors
|
|
|
|
|
|
David M. Barse
has served as a director since 1996 and is Chair of the Nominating and Governance Committee and a member of the Audit Committee and Finance Committee. Mr. Barse served as our President and Chief Operating Officer from July 1996 until July 2002. Mr. Barse is the founder and Chief Investment Officer of DMB Holdings, LLC, a private family office with a diverse investment portfolio. Until December 2015, Mr. Barse served as Chief Executive Officer of Third Avenue Management LLC, ("Third Avenue"), an investment adviser to mutual funds, private funds, solo-advised funds and separately managed accounts, since June 2003 and previously served as President of Third Avenue from February 1998 until September 2012. Mr. Barse also presently serves as a Trustee of Brooklyn Law School and serves on the Board of Directors of City Parks Foundation and is a member of the World Presidents' Organization.
The Board and management benefit from Mr. Barse's knowledge of finance and financial and trading markets, as well as his institutional knowledge of the Company's businesses, dating back to Danielson Holding Corporation's original investment in Covanta Energy Corporation, and his prior role as Danielson's President and Chief Operating Officer. Mr. Barse's legal background and experience in growth strategy execution and investing in companies in a range of sectors, provide a direct benefit to the Board and our stockholders. Mr. Barse is 54 years old.
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|
|
|
|
|
|
|
|
Ronald J. Broglio
has served as a director since October 2004 and is Vice-Chair of the Public Policy and Technology Committee and a member of the Nominating and Governance Committee. Mr. Broglio has been the President of RJB Associates, a consulting firm specializing in energy and environmental solutions, since 1996. Mr. Broglio was Managing Director of Waste to Energy for Waste Management International Ltd. from 1991 to 1996. Prior to joining Waste Management, Mr. Broglio held a number of positions with Wheelabrator Environmental Systems Inc. from 1980 through 1990, including Managing Director, Senior Vice President - Engineering, Construction & Operations and Vice President of Engineering & Construction. Mr. Broglio served as Manager of Staff Engineering and as a staff engineer for Rust Engineering Company from 1970 through 1980.
Mr. Broglio has more than 45 years of experience in the waste and energy-from-waste industries, and has an in-depth technical knowledge of combustion systems, complementary and new technologies relating to both waste materials management and energy production, and the engineering associated with our business. In these areas, as well as his management experience in the waste and energy-from-waste sectors both in the Americas and in Europe, he provides valuable insight to management and the Board. Mr. Broglio is 76 years old.
|
|
|
|
|
|
|
|
|
Peter C.B. Bynoe
has served as a director since July 2004 and is Chair of the Compensation Committee and a member of the Nominating and Governance Committee. Since October 2014 Mr. Bynoe has been a Managing Director at EGI Division. Through December 31, 2016, Mr. Bynoe also served as Senior Counsel to the law firm of DLA Piper US, LLP, which he joined as a partner in 1995. Mr. Bynoe has been a principal of Telemat Ltd., a consulting and project management firm, since 1982. Mr. Bynoe has been a director of Frontier Communications Corporation (formerly known as Citizens Communication Corporation), a telephone, television and internet service provider, since 2007, and in July 2013, he became a director of Real Industry, a diversified business and financial services enterprise that primarily manages assets and liabilities related to aluminum alloy purchasing, recycling and production investments. From September 2013 to October 2014, he served as Chief Executive Officer of Rewards Network Inc., a provider of credit card loyalty and rewards programs. Mr. Bynoe was formerly a director of Rewards Network Inc. From February 2009 until September 2013, Mr. Bynoe was a partner and Chief Operating Officer at Loop Capital Markets, LLC, a full-service investment banking firm based in Chicago and Managing Director from February 2008 to February 2009.
The Board benefits from Mr. Bynoe's extensive legal and financial expertise, his background in complex public infrastructure projects, and his extensive knowledge of public policy issues. Mr. Bynoe's service as a board member for other public and private companies also enables him to provide valuable insight and perspective on compensation and governance matters. Mr. Bynoe is 66 years old.
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|
|
|
|
|
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|
|
Linda J. Fisher
has served as a director since December 2007 and is Chair of the Public Policy and Technology Committee and a member of the Nominating and Governance Committee. Ms. Fisher served as Vice President, Safety, Health and Environment and Chief Sustainability Officer at E.I. du Pont de Nemours and Company (“DuPont”) from 2004 until her retirement in 2016. Prior to joining DuPont, Ms. Fisher was Deputy Administrator of the United States Environmental Protection Agency. Ms. Fisher has served on the boards of several environmental and conservation organizations and currently serves as a director of Resources for the Future, a non-profit, non-partisan organization that conducts independent research on environmental, energy and natural resource issues. She is also a member of the Board of Directors of the S.C. Johnson Company, a privately held consumer goods company.
2
Ms. Fisher's background at the United States Environmental Protection Agency, where she held senior regulatory policy positions, provides to management and the Board valuable insight into the regulatory and policy developments affecting the Company's business and setting future strategy. Ms. Fisher's experiences as Chief Sustainability Officer at DuPont bring a breadth and depth of knowledge in matters relating to management of workplace safety and environmental compliance and performance for a public company, as well as add to the Board's breadth and further enhance our ability to improve and build upon the Clean World Initiative. Ms. Fisher is 64 years old.
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|
|
|
|
|
|
|
Joseph M. Holsten
has served as a director since May 2009, Vice Chair of the Board and Chair of the Operations Committee from July 2014 until March 2015, and is a member of the Finance and Audit Committees. Since November 2011, Mr. Holsten has been Chairman of the Board of LKQ Corporation (“LKQ”), the largest provider in the U.S. of aftermarket, recycled and refurbished collision replacement parts and accessories, and a leading provider of new automotive aftermarket products in the United Kingdom, the Benelux countries, Italy, Switzerland, the Czech Republic and several other Central European states. He has been a member of the Board of Directors of LKQ since February 1999. Mr. Holsten was the President and Chief Executive Officer of LKQ from November 1998 until January 2011 when he became Co-Chief Executive Officer as part of his transition to retirement. He retired from his position of Co-Chief Executive Officer in January 2012. Prior to joining LKQ, Mr. Holsten held various positions of increasing responsibility with the North American and International operations of Waste Management, Inc. for approximately 17 years. From February 1997 until July 1998, Mr. Holsten served as Executive Vice President and Chief Operating Officer of Waste Management, Inc. From July 1995 until February 1997, he served as Chief Executive Officer of Waste Management International, plc.
Mr. Holsten's operating and strategic experience in the waste industry, in both domestic and international markets, combined with his knowledge of global commodities markets, provides the Board with valuable insight and perspective on industry specific issues. In addition, as a recent chief executive officer and current executive chairman of a public company, Mr. Holsten brings valuable perspective to management on a range of issues, as well as a deep financial expertise and understanding. Mr. Holsten is 64 years old.
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|
|
|
|
|
|
|
|
Stephen J. Jones
was appointed our President and Chief Executive Officer and elected as a director in March, 2015. Prior to joining Covanta, Mr. Jones was employed by Air Products and Chemicals, Inc. (“Air Products”), a global supplier of industrial gases, equipment and services from 1992 through September 2014. Mr. Jones served as senior vice president and general manager, Tonnage Gases, Equipment and Energy of Air Products, from April 2009 through September 2014. Mr. Jones also served as Air Products’ China President from June 2011 through September 2014 at Air Products’ office in Shanghai. He was also a member of Air Products’ Corporate Executive Committee from 2007 through September 2014. Mr. Jones joined Air Products in 1992 as an attorney in the Law Group representing various business areas and functions and in 2007 he was appointed senior vice president, general counsel and secretary. Mr. Jones also serves on the Board of Bloomsburg University Foundation.
Mr. Jones’ experience managing and growing domestic and international companies, with capital-intensive operating assets, his business acumen and his knowledge of the energy marketplace are valuable assets to the Board. Mr. Jones is 55 years old.
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|
|
|
|
|
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|
|
Danielle Pletka
was appointed to the Board in September, 2016 and is a member of the Public Policy and Technology Committee. Ms. Pletka has served as senior vice president of foreign and defense policy studies at the American Enterprise Institute (AEI), a leading public policy research organization, since 2002. Prior to joining AEI, she served as a senior staff member for the United States Senate Committee on Foreign Relations between 1992 and 2002, where she specialized in the Near East and South Asia.
Ms. Pletka has extensive experience in international affairs and markets, and in the political climates in many countries. As we seek to expand our business in international markets where opportunities exist, Ms. Pletka's experience, and strategic insights into new markets and the related political climate and outlook in those markets, provide valuable perspective to the Board and management. Ms.
Pletka is 53 years old.
|
|
|
|
|
|
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|
|
Michael W. Ranger
was appointed to the Board in September, 2016 and is a member of the Audit Committee and the Finance Committee. Since 2004, Mr. Ranger has served as co-founder and senior managing director of Diamond Castle Holdings, LLC, a private equity investment firm focusing on energy and power, healthcare, financial services and other diversified industries. Before founding Diamond Castle Holdings in 2004, he was co-chairman of DLJ Global Energy Partners. Previously, he was an investment banker in the energy and power sector for 20 years, most recently as head of the Domestic Power Group at Credit-Suisse First Boston from 2000 to 2004 and prior to that as group head of Global Energy & Power at DLJ between 1990 to 2004. Before joining Donaldson, Lufkin & Jenrette, he was a senior vice president in the Energy & Utility Group at Drexel Burnham Lambert and was a member of the Utility Banking Group at Bankers Trust. Mr. Ranger is a former member of the board of directors of TXU Corp. (Dallas), American Ref-Fuel, Inc, Catamount Energy Corporation and is currently on the board of directors at Consolidated Edison, Inc., Bonton Media Group, Beacon Behavioral Health and KDC Solar, Inc. He is a trustee of St. Lawrence University, former chairman of the board of The Seeing Eye, Inc., and a member of the boards of Morristown-Beard School and of Life Camp, Inc.
Mr. Ranger's extensive experience in investment and finance, including board positions at both public and private companies in the energy-from-waste and broader energy sectors, bring valuable insight and perspective to the Board and management with respect to growth strategies, energy markets, and governance. Mr. Ranger is 58 years old.
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|
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|
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|
Robert S. Silberman
has served as a director since December 2004 and is Chair of the Finance Committee and a member of the Compensation Committee and the Audit Committee. Mr. Silberman has been Executive Chairman of the Board of Directors of Strayer Education, Inc. since May 2013, Chairman of the Board from February 2003 to May 2013 and its Chief Executive Officer from March 2001 until May 2013. Strayer Education, Inc. is an education services company, whose main operating asset, Strayer University, is a leading provider of graduate and undergraduate degree programs focusing on working adults. Mr. Silberman is also a Managing Director at EGI Division. Mr. Silberman is a member of the Council on Foreign Relations, a nonpartisan resource for information and analysis on foreign relations. He also serves as a director of 21st Century Fox and Par Pacific. From 1995 to 2000, Mr. Silberman held several senior positions, including President and Chief Operating Officer at CalEnergy Company, Inc., an independent energy producer. Mr. Silberman has also held senior positions within the U.S. Department of Defense, including as Assistant Secretary of the Army.
Mr. Silberman's positions as a current executive chairman and formerly as a long-tenured chief executive officer and board member of public companies, coupled with his financial background in investing in and growing energy and project development businesses, and his experience at senior positions in the public sector, combine to provide valuable insight and perspective to both the Board and management. Mr. Silberman is 58 years old.
|
|
|
|
|
|
|
|
|
Jean Smith
has served as a director since December 2003 and is Chair of the Audit Committee and a member of the Nominating and Governance Committee and the Compensation Committee. Ms. Smith is currently Chief Executive Officer of West Knoll Collection, LLC, a custom home furnishings company. From 2009 to 2013, Ms. Smith was a Managing Director of Gordian Group, LLC, an independently owned investment bank. From 2006 through 2008, she served as Managing Director of Plainfield Asset Management LLC, an investment manager for institutions and high net worth individuals. Ms. Smith previously held the position of President of Sure Fit Inc., a home textiles company, from 2004 to 2006 and was a private investor and consultant on various special situation projects from 2001 to 2004. Ms. Smith has more than 30 years of investment and international banking experience, having previously held the position of Managing Director of Corporate Finance for U.S. Bancorp Libra and senior positions with Bankers Trust Company, Citicorp Investment Bank, Security Pacific Merchant Bank and UBS Securities.
Ms. Smith brings a range of extensive and diverse financial and business experience to the Board, including in the areas of capital markets, investment management, and operations and business management in both domestic and international markets. Ms. Smith is 61 years old.
|
|
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|
|
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|
Samuel Zell
has served as our Chairman of the Board since September 2005, and had also previously served as a director from 1999 to 2004, as our President and Chief Executive Officer from July 2002 to April 2004 and as our Chairman of the Board from July 2002 to October 2004. Mr. Zell's one-year term as our Chairman and as a director will expire at the next Annual Meeting. Since January 3, 2012, Mr. Zell has served as the Chairman and Chief Executive Officer of the Equity Group Investments division of Chai Trust Company, LLC, a private investment firm he founded over 40 years ago, and prior to that Mr. Zell served as the Chairman of its predecessors for more than the past five years. He also serves as Chairman of: Anixter International, Inc., a global distributor of network, security, electric, and utility power solutions; Equity Commonwealth, an equity real estate investment trust (REIT) that owns and operates office buildings; Equity LifeStyle Properties, Inc., an equity REIT that owns and operates manufactured home communities, and RV resorts and campgrounds; and Equity Residential, an equity REIT that owns and operates rental apartment properties. Mr. Zell served as the Chairman of the Board of Tribune Company, a Chicago-based media conglomerate, from December 2007 until December 2012 at which time Tribune Company emerged from Chapter 11 bankruptcy. He served as Tribune Company’s Chief Executive Officer from December 2007 until December 2009. Mr. Zell previously served as the Chairman of the Board of Equity Office Properties Trust, an equity REIT that owned and operated office buildings, and was the company's Interim President from April 2002 until November 2002 and was its Interim Chief Executive Officer from April 2002 until April 2003. Mr. Zell also previously served as Chairman of the Board of Rewards Network Inc., a dining rewards company and Blackstone Mortgage Trust, Inc. (f/k/a Capital Trust, Inc.), a specialized finance company.
|
|
|
Mr. Zell's financial sophistication, extensive investment and management experience in domestic and global markets, dynamic business and strategic expertise and vast network significantly augment the Board in substantially every aspect of its functionality and provide invaluable insight to management. Mr. Zell is 75 years old.
|
•
|
Stephen J. Jones, President and Chief Executive Officer
|
•
|
Bradford J. Helgeson, Executive Vice President and Chief Financial Officer
|
•
|
Timothy J. Simpson, Executive Vice President, General Counsel and Secretary
|
•
|
Michael J. de Castro, Executive Vice President, Supply Chain
|
•
|
Derek W. Veenhof, Executive Vice President, Sustainable Solutions
|
•
|
to align the interests of our stockholders and management by putting a significant portion of potential compensation “at risk” and tied to actual performance. Greater relative percentages of potential compensation are at risk for the most senior officers to reflect their respective areas and levels of responsibility for our performance;
|
•
|
to provide a market competitive and internally equitable compensation and benefits package that reflects individual and company performance, job responsibilities and the strategic value of our market position and reputation;
|
•
|
to motivate and reward our senior management team for maintaining and creating long-term value by effectively operating our existing business and executing our strategic initiatives; and
|
•
|
to ensure retention, engagement, and motivation of our senior management team as productive long-term employees, who lead our strategic initiatives, effectively manage our businesses and related risks and drive financial performance.
|
•
|
acquired two environmental services businesses which will further expand our presence in this sector and allow us to direct additional non-hazardous profiled waste volumes into our EfW facilities;
|
•
|
continued to meet construction milestones on the Dublin EfW facility, a 600,000 metric ton-per-year, 58 megawatt facility in Dublin, Ireland and secured 90% of the facility’s waste processing capacity under long-term contracts with leading waste and recycling collection companies in Ireland, remaining on track to proceed with commercial operations in late 2017;
|
•
|
commenced commercial operations at the Durham-York facility, a municipally-owned 140,000 metric ton-per-year EfW facility located in the Durham Region of Canada, under a 20-year service fee contract;
|
•
|
extended long-term service agreements with two of our EfW facilities;
|
•
|
organically grew our revenue generated from profiled waste processed at our EfW facilities by 15%, while further expanding our environmental services offerings and customer base;
|
•
|
installed and/or upgraded metal recovery systems at several EfW facilities and continued to expand operations at our new regional metal processing facility in eastern Pennsylvania, improving product quality, expanding our potential end markets and leveraging scale to achieve lower transportation costs,
|
•
|
commenced expansion of our regional metals processing facility to handle non-ferrous volumes;
|
•
|
increased volume of ferrous and non-ferrous yield to record levels; and
|
•
|
continued to improve process efficiency and reduce ongoing expenses across our business.
|
Component
|
Description/Purpose
|
How Amount Determined/ Performance Considerations
|
2016 Actions
|
Base Annual Salary
|
Attract and retain experienced executives by providing competitive foundational cash compensation.
|
Targeted at peer group median with adjustment based upon nature and levels of responsibility, experience and individual performance.
|
Base salaries for the continuing named executive officers increased by 5.8% on average in 2016 after several years with small or no increases.
|
Annual Cash Incentives
|
Variable cash incentive to reward achievement of annual financial and strategic goals.
|
Based 100% upon Adjusted EBITDA. Minimum goals for Adjusted EBITDA must be achieved for any bonus to be funded.
|
Actual Adjusted EBITDA, as adjusted, performance in 2016 of $417 million was equal to 95% of target.
|
Performance Based Equity Awards
|
Variable equity-based awards, with vesting directly tied to Free Cash Flow per share performance measured over a three year period.
|
Performance Equity Awards will vest three years after grant based on our cumulative Free Cash Flow per share targeted over such three year period, with vesting at 100% of target at $4.00 according to the following table:
|
In March 2016, the Committee granted 67% of target equity-based long-term incentives for the named executive officers in the form of Performance Equity Awards.
|
|
Encourages current decisions that generate free cash flow to operate our business and sustain our dividend, promote long-term value creation for stockholders, and align the named executive officers’ interests with stockholders.
|
|
|
|
|
Payouts are linearly interpolated for performance between breakpoints.
As a result of the decline in our stock price in 2015 and not recouped in 2016, TSR-based equity performance awards granted in 2014 did not result in any shares vesting in March 2017.
|
|
Restricted Stock Equity Awards
|
Shares of restricted stock that vest pro rata over a three year period and pay dividends.
Encourages retention of key talent and aligns the named executive officers’ interests with stockholders.
|
Shares vest pro rata, upon continued employment, on each anniversary date with actual value determined by stockholder returns during vesting period.
|
In March 2016, the Committee granted 33% of target equity-based long-term incentives for the named executive officers in the form of restricted stock vesting pro rata over a period of three years based upon continued employment.
|
Avista Corporation
|
NRG Energy, Inc.
|
UIL Holdings Corporation
|
Black Hills Corporation
|
PNM Resources, Inc.
|
Vectren Corporation
|
Clean Harbors, Inc.
|
Portland General Electric Company
|
Waste Connections Inc.
|
Cleco Corporation
|
Progressive Waste Solutions, Ltd.
|
Westar Energy, Inc.
|
Hawaiian Electric Industries, Inc.
|
Schnitzer Steel
|
|
IDACORP, Inc.
|
Tetra Tech Inc.
|
|
•
|
the targets for Adjusted EBITDA for the performance criteria of the annual cash incentive awards;
|
•
|
the form and amount or dollar value of equity awards; and
|
•
|
the vesting criteria, including any performance-based criteria, and vesting dates for equity awards.
|
•
|
Purpose:
Base salary is the fixed component of direct compensation and is designed to attract and retain experienced executives who can operate our business in a manner to achieve our short-term and long-term business goals and objectives.
|
•
|
Performance drivers:
While a named executive officer’s initial base salary is determined by an assessment of competitive market levels, the major factor driving changes in such base salary will be that named executive officer’s individual performance measured by his satisfaction of internal objectives specific to such named executive officer and his assigned responsibilities.
|
•
|
Other Factors:
We may also consider various external factors, such as competition for certain executive skills and internal needs, when setting annual base salaries. Although we have historically granted regular, annual merit-based salary increases to officers and salary adjustments as needed to reflect changes in role, responsibility and the competitive environment, such increases are not automatic. Further, we also consider overall levels of compensation in making compensation decisions, and attempt to balance annual base salary amounts with performance-based measures of compensation, such as incentive cash awards and equity awards.
|
•
|
2016:
Base salaries for our named executive officers were increased by approximately 5.8% on average in 2016 reflecting promotions or expansion of responsibilities and to ensure competitive total compensation.
|
•
|
Purpose:
The annual cash incentive award is a variable performance-based compensation component designed to reward the achievement of annual financial and strategic goals.
|
•
|
Application of Performance Measures:
As noted above, annual cash bonus awards in 2016 for our named executive officers were based upon achieving objectives measured by our actual Adjusted EBITDA compared to the target for Adjusted EBITDA. Minimum levels of Adjusted EBITDA must be achieved for any bonus to fund regardless of individual performance. Where such minimum levels are not reached, such as in 2015, the pool is not funded and no annual cash incentive awards are paid.
|
•
|
Target Bonus:
The Compensation Committee also set a “target” bonus level for each of the named executive officers which was a stated percentage of such officer’s base salary. These target levels in 2016 were 100% for the Chief Executive Officer and ranged from 65% to 70% for the other named executive officers.
|
•
|
2016:
Actual Adjusted EBITDA, as adjusted, was $417 million in 2016, or 95% of target as a result of strong operational performance.
|
Financial Performance Level
|
Payout (% of Target Bonus)
|
Adjusted EBITDA as % of Target
|
< Minimum
|
0%
|
88
|
Threshold
|
50%
|
92
|
Target
|
100%
|
100
|
>=Stretch
|
200%
|
116
|
|
|
Adjusted EBITDA
|
|
||||||||||
|
|
Target
Adjusted EBITDA (in millions) |
|
Actual
Adjusted EBITDA, As Adjusted (in millions) |
|
Payout
Variances
(% of Target)
|
Cumulative Performance
(1)
|
||||||
2014
|
|
$
|
490.0
|
|
|
$
|
481.1
|
|
|
85
|
%
|
108
|
%
|
2015
|
|
$
|
520.0
|
|
|
$
|
428.0
|
|
|
0
|
%
|
0
|
%
|
2016
|
|
$
|
420.0
|
|
|
$
|
417.0
|
|
|
95
|
%
|
n/a
|
|
(1)
|
In 2014 and 2015, financial performance under the annual cash incentive program was based on a combination of Adjusted EBITDA and Free Cash Flow. Financial performance was weighted 67%, and strategic performance was weighted 33%. In 2016, funding of annual cash incentive awards was based 100% on Adjusted EBITDA.
|
•
|
we continue to operate our business consistent with the historically high standards of efficiency, production, safety and environmental performance;
|
•
|
we continue to control our costs of conducting our business and operations;
|
•
|
external market forces and pricing are consistent with expectations (at the time we establish our annual budgets) in key areas, including waste, energy, commodity and scrap metal prices and interest rates;
|
•
|
third parties, including communities we serve and the purchasers of the energy we generate, continue to remain financially sound and satisfy their contractual obligations to us; and
|
•
|
we do not experience unforeseen events, such as weather, flooding, accidents or fires at our facilities, acts of God, pandemics, natural disasters, terrorism or other casualty events, that have a material adverse impact on our financial results.
|
Named Executive Officer
|
2014 Award (excluding Special Cash Bonus) (%)
|
2014 Award (including Special Cash Bonus) (%)
|
2015 Award (%)
|
2016 Award
(1)
(%)
|
Stephen J. Jones
(2)
|
n/a
|
n/a
|
0
|
95
|
Bradford J. Helgeson
(3)
|
145
|
170
|
0
|
95
|
Timothy J. Simpson
|
150
|
184
|
0
|
95
|
Michael J. de Castro
(4), (5)
|
n/a
|
n/a
|
0
|
100
|
Derek W. Veenhof
(5)
|
130
|
142
|
0
|
100
|
(1)
|
Beginning in 2016 Free Cash Flow was removed as a financial performance measure from the annual cash bonus. While individual performance components were also removed, the Compensation Committee retained the discretion to adjust awards based upon individual strategic performance. All awards starting in 2016 related solely to Adjusted EBITDA.
|
(2)
|
On March 5, 2015, pursuant to agreements entered into on January 5, 2015, Mr. Jones succeeded Anthony J. Orlando as President and Chief Executive Officer. Under his Employment Letter Agreement, the Compensation Committee agreed to award Mr. Jones a cash incentive award equal to 100% of his target cash incentive award as part of his incoming compensation arrangements. In light of the fact that none of the management team would be receiving any cash incentive awards, Mr. Jones requested that his guarantee be waived and that he not receive a cash incentive award payment for 2015.
|
(3)
|
Of the award made in 2014, $60,000 had been held back pending successful operational implementation of certain cost saving and operational efficiency efforts. Mr. Helgeson received this $60,000 in 2016.
|
(4)
|
Mr. de Castro was not a named executive officer prior to 2015.
|
(5)
|
The Compensation Committee exercised its discretion to increase the bonus authorization to 100% to reward superior strategic performance.
|
•
|
Purpose:
Long-term incentive equity awards are equity awards designed to attract and retain executives, and to strengthen the link between compensation and increased stockholder value.
|
•
|
Forms of Equity Awards:
In 2016, the Compensation Committee granted a combination of time-vesting and performance-vesting restricted stock. In 2016, our Chief Executive Officer and other named executive officer received equity awards with target grant-date fair values equal to 2.5 times and ranging from 1.50 to 2.0 times, respectively, their annual base salary, with two-thirds in the form of Performance Based Equity Awards and one-third in the form of time vesting restricted stock awards.
|
•
|
Performance Equity Awards -
Performance
and Vesting Criteria:
Performance Equity Awards are in the form of restricted stock units that are earned and vested three years after grant based upon our three-year cumulative Free Cash Flow per share performance, according to the following table, with payouts linearly interpolated for performance between levels:
|
Cumulative Free Cash Flow per Share (2016-2018)
|
Payout Factor (% of Target Shares)
|
<$3.00
|
0%
|
$3.00
|
0%
|
$4.00
|
100%
|
$6.00
|
200%
|
•
|
Restricted Stock Awards - Vesting:
Restricted stock awards granted in 2016 vest in three equal tranches on March 17 of 2017, 2018 and 2019.
|
Company
|
|
GICS Sub-Industry
|
|
ALLETE
|
|
Electric Utilities
|
|
Babcock & Wilcox
|
|
Heavy Electrical Equipment
|
|
Calpine Corp.
|
|
Independent Power Production & Energy Trader
|
|
Casella Waste
|
|
Environmental & Facilities Services
|
|
Clean Harbors
|
|
Environmental & Facilities Services
|
|
Commercial Metals
|
|
Steel
|
|
First Solar
|
|
Semiconductors
|
|
HB Fuller
|
|
Specialty Chemicals
|
|
Ormat Technologies
|
|
Renewable Electricity
|
|
PNM Resources
|
|
Electric Utilities
|
|
Schnitzer Steel
|
|
Steel
|
|
Sims Metal Management
|
|
Steel
|
|
Stericycle
|
|
Environmental & Facilities Services
|
|
US Ecology
|
|
Environmental & Facilities Services
|
|
Waste Connections
|
|
Environmental & Facilities Services
|
|
Covanta
|
|
Environmental & Facilities Services
|
(1)
|
Peer group company median financial data derived from Standard & Poor’s Capital IQ and reflect adjustments by Standard & Poor’s intended to standardize information across companies. These adjustments may result in differences versus publicly reported financials as calculated in accordance with GAAP.
|
Title
|
|
Multiple of
Base Salary
|
Chief Executive Officer
|
|
4.0 x Base Salary
|
Executive Vice Presidents
|
|
3.0 x Base Salary
|
Senior Vice Presidents
|
|
2.0 x Base Salary
|
Vice Presidents
|
|
1.0 x Base Salary
|
Name and Principal Position
|
|
Year
|
|
Salary
($)
|
|
Bonus
($)
|
|
Stock
Awards
(1)
($)
|
|
Non-Equity
Incentive Plan
Compensation
($)
|
|
Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
(2)
($)
|
|
All Other
Compensation
(3)
($)
|
|
Total
($)
|
||||||||||||||
Stephen J. Jones
(4)
|
|
2016
|
|
$
|
725,000
|
|
|
$
|
—
|
|
|
$
|
1,812,520
|
|
(5)
|
$
|
688,750
|
|
(5)
|
$
|
—
|
|
|
$
|
57,855
|
|
|
$
|
3,284,125
|
|
President & Chief Executive Officer
|
|
2015
|
|
$
|
675,000
|
|
|
$
|
—
|
|
|
$
|
1,103,929
|
|
(6)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,450
|
|
|
$
|
1,813,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Bradford J. Helgeson
|
|
2016
|
|
$
|
400,000
|
|
|
$
|
—
|
|
|
$
|
600,000
|
|
(5)
|
$
|
266,000
|
|
(5)
|
$
|
—
|
|
|
$
|
62,762
|
|
|
$
|
1,328,762
|
|
Executive Vice President & Chief Financial Officer
|
|
2015
|
|
$
|
365,050
|
|
|
$
|
60,000
|
|
(7)
|
$
|
1,052,516
|
|
(6),(8)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,350
|
|
|
$
|
1,499,916
|
|
|
|
2014
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
465,062
|
|
(9)
|
$
|
415,975
|
|
(10)
|
$
|
—
|
|
|
$
|
22,076
|
|
|
$
|
1,253,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Timothy J. Simpson
|
|
2016
|
|
$
|
380,000
|
|
|
$
|
—
|
|
|
$
|
760,000
|
|
(5)
|
$
|
234,650
|
|
(5)
|
$
|
34,956
|
|
|
$
|
78,065
|
|
|
$
|
1,487,671
|
|
Executive Vice President General Counsel & Secretary
|
|
2015
|
|
$
|
373,100
|
|
|
$
|
—
|
|
|
$
|
457,642
|
|
(6)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
61,433
|
|
|
$
|
892,175
|
|
|
|
2014
|
|
$
|
364,000
|
|
|
$
|
—
|
|
|
$
|
483,653
|
|
(9)
|
$
|
435,589
|
|
(10)
|
$
|
74,699
|
|
|
$
|
55,723
|
|
|
$
|
1,413,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Michael J. de Castro
(11)
|
|
2016
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
700,000
|
|
(5)
|
$
|
227,500
|
|
(5)
|
$
|
—
|
|
|
$
|
34,146
|
|
|
$
|
1,311,646
|
|
Executive Vice President, Supply Chain
|
|
2015
|
|
$
|
154,615
|
|
|
$
|
50,000
|
|
(12)
|
$
|
120,012
|
|
(13)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,882
|
|
|
$
|
329,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Derek W. Veenhof
|
|
2016
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
700,000
|
|
(5)
|
$
|
227,500
|
|
(5)
|
$
|
—
|
|
|
$
|
34,146
|
|
|
$
|
1,311,646
|
|
Executive Vice President, Sustainable Solutions
|
|
2015
|
|
$
|
335,160
|
|
|
$
|
—
|
|
|
$
|
411,127
|
|
(6)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,283
|
|
|
$
|
765,570
|
|
|
|
2014
|
|
$
|
315,000
|
|
|
$
|
—
|
|
|
$
|
418,560
|
|
(9)
|
$
|
290,812
|
|
(10)
|
$
|
—
|
|
|
$
|
19,364
|
|
|
$
|
1,043,736
|
|
(1)
|
Represents the aggregate grant date fair value computed in accordance with FASB ASC Topic 718. The grant date fair value for time-based restricted stock is computed using the closing price of the shares on the grant date. The grant date fair value for the performance total stockholder return (“TSR”)-based restricted stock units was calculated by using a Monte Carlo simulation, which produced a probable value for the awards at $14.13 for the 2014 grant and $15.98 per share for the 2015 grant. The TSR-based equity awards will vest at the end of the three-year vesting term, however, the number of shares delivered will vary based upon the attained level of performance and may range from 0 to 2.0 times the number of target units awarded. The TSR-based equity awards granted in 2014 and vesting in March 2017 are not expected to have any value and will not vest. The grant date fair value for the Performance Equity Awards measured by cumulative Free Cash Flow per share performance-based equity awards granted in 2016 was computed using the closing price of the common stock on the grant date. The Performance Equity Awards will vest at the end of the three-year performance period, however, the number of shares delivered will vary based upon the attained level of performance and may range from 0 to 2.0 times the number of target units awarded.
|
(2)
|
The amounts shown for Mr. Simpson in this column are attributable to the change in actuarial present value of the accumulated benefit under a supplemental benefit plan that was frozen in 2009, at December 31, of the applicable year, as compared to December 31, of the immediately preceding year. The actual change in pension value in 2015 was negative $29,092 and pursuant to SEC guidance, this amount has been omitted from the table.
|
(3)
|
The amounts shown in this column for 2016 consist of the following components:
|
Name
|
|
Company
401(k)
Match
(a)
|
|
Company
Contribution
to Defined
Contribution
Plan
(b)
|
|
Life Insurance
Premiums Paid
by Company
|
|
Dividends Accrued on Performance Based Equity Incentive Awards
|
|
Total
|
||||||||||
Stephen J. Jones
|
|
$
|
10,600
|
|
|
$
|
7,950
|
|
|
$
|
900
|
|
|
$
|
38,405
|
|
|
$
|
57,855
|
|
Bradford J. Helgeson
|
|
$
|
10,600
|
|
|
$
|
7,950
|
|
|
$
|
874
|
|
|
$
|
43,338
|
|
|
$
|
62,762
|
|
Timothy J. Simpson
|
|
$
|
10,600
|
|
|
$
|
7,950
|
|
|
$
|
830
|
|
|
$
|
58,685
|
|
|
$
|
78,065
|
|
Michael J. de Castro
|
|
$
|
10,600
|
|
|
$
|
7,950
|
|
|
$
|
764
|
|
|
$
|
14,832
|
|
|
$
|
34,146
|
|
Derek W. Veenhof
|
|
$
|
10,600
|
|
|
$
|
7,950
|
|
|
$
|
764
|
|
|
$
|
14,832
|
|
|
$
|
34,146
|
|
(a)
|
Represents matching contributions to the 401(k) account under the Covanta Energy Savings Plan of each named executive officer. See the description of the plan in “Retirement Plans” for more information.
|
(b)
|
Represents contributions to the defined contribution retirement plan account under the Covanta Energy Savings Plan of each named executive officer. See the description of the plan in “Retirement Plans” for more information.
|
(4)
|
Mr. Jones was not an executive officer of the Company prior to 2015.
|
(5)
|
Includes $15.11 of grant date fair value for restricted stock unit Performance Equity Awards based upon cumulative Free Cash Flow per share and time-based restricted stock or restricted stock unit awards granted in 2016.
|
(6)
|
Includes $15.98 of grant date fair value for TSR awards and $21.99 of grant date fair value for restricted stock awards.
|
(7)
|
Represents a portion of a special cash bonus for 2014 that had been held back pending successful operational implementation of certain cost saving and operational efficiency efforts.
|
(8)
|
Includes award of performance based restricted stock units, valued at the time of grant at $604,725 for Mr. Helgeson. This award vests after a period of at least three years based upon successful achievement of specified criteria and confirmation of a bring-down calculation by the Compensation Committee.
|
(9)
|
Includes $14.13 of grant date fair value for TSR awards and $17.05 of grant date fair value for restricted stock awards.
|
(10)
|
Amounts included for 2014 represent the value of the annual incentive cash awards plus the special cash incentive awards received by each named executive officer in March 2015 in respect of service performed in 2014.
|
(11)
|
Mr. de Castro was not an executive officer of the Company prior to 2015.
|
(12)
|
Represents a new hire bonus received in July 2015.
|
(13)
|
Represents a restricted stock award upon commencement of employment vesting pro rata over four years beginning in March 2016.
|
|
|
|
Estimated Possible Payouts Under
Non-Equity Incentive Plan
Awards
(1)
|
|
Estimated Future Payouts Under
Equity Incentive Plan
Awards
(2)
|
|
All
Other
Stock
Awards:
Number
of Shares
of Stock
or Units
(3)
|
|
All Other
Option
Awards:
Number of
Securities
Underlying
Options
|
|
Exercise
or Base
Price of
Option
Awards
|
|
Grant
Date Fair
Value of
Stock
and
Option
Awards
(4)
|
||||||||||||||||||
|
|
|
Threshold
|
|
Target
|
|
Maximum
|
|
Threshold
|
|
Target
|
|
Maximum
|
|
|
|
|
||||||||||||||
Name
|
Grant Date
|
|
($)
|
|
($)
|
|
($)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
($/sh)
|
|
($)
|
||||||||||
Stephen J. Jones
|
|
|
$
|
362,500
|
|
|
$
|
725,000
|
|
|
$
|
1,450,000
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
$
|
—
|
|
|
March 3, 2016
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
40,005
|
|
80,010
|
|
|
160,020
|
|
—
|
|
|
—
|
|
—
|
|
$
|
1,208,951
|
|
|
March 3, 2016
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
39,945
|
|
|
—
|
|
—
|
|
$
|
603,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bradford J. Helgeson
|
|
|
$
|
140,000
|
|
|
$
|
280,000
|
|
|
$
|
560,000
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
$
|
—
|
|
|
March 3, 2016
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
13,243
|
|
26,486
|
|
|
52,972
|
|
—
|
|
|
—
|
|
—
|
|
$
|
400,200
|
|
|
March 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,224
|
|
|
|
|
|
|
$
|
199,800
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Michael J. de Castro
|
|
|
$
|
113,750
|
|
|
$
|
227,500
|
|
|
$
|
455,000
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
$
|
—
|
|
|
March 3, 2016
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
15,451
|
|
30,901
|
|
|
61,802
|
|
—
|
|
|
—
|
|
—
|
|
$
|
466,900
|
|
|
March 3, 2016
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
15,427
|
|
|
—
|
|
—
|
|
$
|
233,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Timothy J. Simpson
|
|
|
$
|
123,500
|
|
|
$
|
247,000
|
|
|
$
|
494,000
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
$
|
—
|
|
|
March 3, 2016
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
16,775
|
|
33,549
|
|
|
67,098
|
|
—
|
|
|
—
|
|
—
|
|
$
|
506,925
|
|
|
March 3, 2016
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
16,750
|
|
|
—
|
|
—
|
|
$
|
253,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derek W. Veenhof
|
|
|
$
|
113,750
|
|
|
$
|
227,500
|
|
|
$
|
455,000
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
$
|
—
|
|
|
March 3, 2016
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
15,451
|
|
30,901
|
|
|
61,802
|
|
—
|
|
|
—
|
|
—
|
|
$
|
466,900
|
|
|
March 3, 2016
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
15,427
|
|
|
—
|
|
—
|
|
$
|
233,100
|
|
(1)
|
In March 2016, our Compensation Committee established various levels of performance. The amounts shown in these columns reflect the range of potential payouts for 2016 performance under our annual incentive cash award plan between the "threshold" and "maximum" levels. The amounts shown in the “threshold” column represent the amount of cash award payable at the 50% of "target" level of performance. In addition, there is a "minimum" level of Company performance below the "threshold" which if not attained will result in no cash awards being payable. Please see the “
Compensation Discussion and Analysis
” in this proxy statement for more information regarding these awards and performance measures.
|
(2)
|
The number of shares of Company common stock actually delivered to executive officers at the end of the three year performance period can range from 0% to 200% of the number of target shares awarded, measured against a target of $4.00. If the cumulative Free Cash Flow per share is equal to or less than $3.00, then no shares will be issued. If the cumulative Free Cash Flow per share is above $3.00, then a payout of target shares will begin to be allocated to each participant. To receive 100% of target the Company's cumulative Free Cash Flow per share must be equal to $4.00. Participants can earn up to 200% of target if the Company's cumulative Free Cash Flow per share equals or exceeds $6.00. Awards are interpolated on a straight-line basis for performance results between levels. Please see the
"Compensation Discussion and Analysis"
in this proxy statement for more information regarding these awards.
|
(3)
|
The number of shares shown reflects the 2016 restricted stock awards under the 2014 Equity Award Plan. The restricted stock awards made in 2016 vested ratably over three years, on the basis of continued employment.
|
(4)
|
Represents the grant date fair value of the awards computed in accordance with FASB ASC Topic 718. The grant date fair value for restricted stock is computed using the closing price of the shares at the grant date. The grant date fair value for the performance-based restricted stock units tied to cumulative Free Cash Flow per share was equal to the closing price of our common stock on the grant date. For our named executive officers, we have assumed for calculating the grant date fair value under FASB ASC Topic 718 that the forfeiture rate was zero.
|
|
|
Option Awards
|
|
Stock Awards
|
|||||||||||||||||||||||||
Name
|
|
Number of
Securities
Underlying
Unexercised
Options
Exercisable
(#)
|
|
Number of
Securities
Underlying
Unexercised
Options
Unexercisable
(#)
|
|
Option
Exercise Price
($)
|
|
Option
Expiration
Date
|
|
Number of
Shares or
Units of Stock
That Have
Not
Vested
(#)
|
|
|
|
Market Value
of Shares
or Units of
Stock That
Have Not
Vested
(1)
($)
|
|
Equity
Incentive Plan
Awards:
Number
of Unearned
Shares,
Units or
Other
Rights
That Have
Not Vested
(#)
|
|
Equity
Incentive Plan
Awards:
Market
or Payout
Value of
Unearned
Shares, Units
or Other
Rights
That Have
Not Vested
(1)
($)
|
|||||||||||
Stephen J. Jones
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
13,630
|
|
|
(2)
|
|
$
|
835,770
|
|
|
80,010
|
|
(3)
|
$
|
1,886,960
|
|
||
|
|
|
|
|
|
|
|
|
|
39,945
|
|
|
(4)
|
|
|
|
40,949
|
|
(5)
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Bradford J. Helgeson
|
|
30,000
|
|
|
—
|
|
|
$
|
23.30
|
|
|
5/7/2017
|
|
|
3,422
|
|
|
(6)
|
|
$
|
345,930
|
|
|
3,002
|
|
(7)
|
$
|
1,468,366
|
|
|
|
|
|
|
|
|
|
|
|
5,529
|
|
|
(2)
|
|
|
|
27,500
|
|
(7)
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
13,224
|
|
|
(4)
|
|
|
|
26,486
|
|
(3)
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,528
|
|
(8)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,610
|
|
(5)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Michael J. de Castro
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
4,258
|
|
|
(9)
|
|
$
|
307,086
|
|
|
30,901
|
|
(3)
|
$
|
482,056
|
|
||
|
|
|
|
|
|
|
|
|
|
15,427
|
|
|
(4)
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Timothy J. Simpson
|
|
120,000
|
|
|
—
|
|
|
$
|
20.52
|
|
|
3/19/2017
|
|
|
3,558
|
|
|
(6)
|
|
$
|
404,945
|
|
|
42,067
|
|
(7)
|
$
|
1,777,480
|
|
|
|
|
|
|
|
|
|
|
|
5,650
|
|
|
(2)
|
|
|
|
33,549
|
|
(3)
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
16,750
|
|
|
(4)
|
|
|
|
21,349
|
|
(8)
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,976
|
|
(5)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Derek W. Veenhof
|
|
25,000
|
|
|
—
|
|
|
$
|
20.52
|
|
|
3/19/2017
|
|
|
3,080
|
|
|
(6)
|
|
$
|
367,895
|
|
|
30,901
|
|
(3)
|
$
|
1,008,166
|
|
|
|
|
|
|
|
|
|
|
|
5,076
|
|
|
(2)
|
|
|
|
18,475
|
|
(8)
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
15,427
|
|
|
(4)
|
|
|
|
15,250
|
|
(5)
|
|
(1)
|
Based on the closing price of our common stock of $15.60 on December 31, 2016, as reported on the New York Stock Exchange.
|
(2)
|
Restricted stock vests in two equal installments on March 17, 2017 and 2018.
|
(3)
|
Performance Equity Awards are reflected at target. Actual vesting ranging from 0% to 200% of target will be determined three years after grant based upon the Company's cumulative Free Cash Flow per share against a target of $4.00. See "
Compensation Discussion and Analysis
" for further detail regarding the vesting of the Performance Equity Awards.
|
(4)
|
Restricted stock vests in three equal installments on March 17, 2017, 2018, and 2019.
|
(5)
|
TSR Equity Awards are reflected at target. Actual vesting ranging from 0% to 200% of target will be determined three years after grant based upon the Company's relative TSR performance against designated peer groups. See "
Compensation Discussion and Analysis
" for further detail regarding the vesting of the TSR Equity Awards.
|
(6)
|
Restricted stock vests on March 17, 2017.
|
(7)
|
Growth equity awards vest after a period of at least three years based on successful achievement of specified criteria and confirmation of a bring down calculation by the Compensation Committee.
|
(8)
|
As of March 17, 2017, such awards did not vest and have no value.
|
(9)
|
Restricted stock vests (or vested) in four equal installments on March 17, 2016, 2017, 2018 and 2019.
|
|
|
Option Awards
|
|
Stock Awards
|
||||||||||
Name
|
|
Number of Shares
Acquired on Exercise
(#)
|
|
Value Realized on
Exercise
($)
|
|
Number of Shares
Acquired on Vesting
(#)
|
|
Value Realized
on Vesting
(1)
($)
|
||||||
Stephen J. Jones
|
|
—
|
|
|
$
|
—
|
|
|
6,714
|
|
|
$
|
117,984
|
|
Bradford J. Helgeson
|
|
—
|
|
|
$
|
—
|
|
|
7,729
|
|
|
$
|
133,828
|
|
Michael J. de Castro
|
|
—
|
|
|
$
|
—
|
|
|
1,419
|
|
|
$
|
24,570
|
|
Timothy J. Simpson
|
|
—
|
|
|
$
|
—
|
|
|
9,504
|
|
|
$
|
164,562
|
|
Derek W. Veenhof
|
|
—
|
|
|
$
|
—
|
|
|
6,989
|
|
|
$
|
121,015
|
|
(1)
|
Amounts reported in this column represent the value of restricted stock awards that vested on March 17, 2016.
|
Executive Officer Benefits and
Payment upon Termination or
Change in Control
|
|
Voluntary
Termination
|
|
Retirement
|
|
Not for Cause
Termination
|
|
For Cause
Termination
|
|
Change in
Control
|
|
Death
|
|
Disability
|
|
||||||||||||||
Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash
|
|
$
|
27,885
|
|
(1)
|
$
|
27,885
|
|
(1)
|
$
|
1,450,000
|
|
(2)
|
$
|
27,885
|
|
(1)
|
$
|
1,450,000
|
|
(2)
|
$
|
27,885
|
|
(1)
|
$
|
27,885
|
|
(1)
|
Stock Option
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Restricted Stock
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
835,770
|
|
(3)(4)
|
$
|
—
|
|
|
$
|
—
|
|
|
Growth Equity Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
TSR Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45,230
|
|
(5)
|
$
|
—
|
|
|
$
|
—
|
|
|
Performance Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
627,919
|
|
(6)
|
$
|
—
|
|
|
$
|
—
|
|
|
Benefits and Perquisites:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Health Care
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38,536
|
|
(8)
|
$
|
—
|
|
|
$
|
39,688
|
|
(7)
|
$
|
—
|
|
|
$
|
47,194
|
|
(8)
|
Life Insurance Benefits
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
750,000
|
|
(9)
|
$
|
—
|
|
|
Total:
|
|
$
|
27,885
|
|
|
$
|
27,885
|
|
|
$
|
1,488,536
|
|
|
$
|
27,885
|
|
|
$
|
2,998,607
|
|
|
$
|
777,885
|
|
|
$
|
75,079
|
|
|
(1)
|
Assumes that two weeks of annual base salary have not been paid in accordance with our standard payment practices.
|
(2)
|
In the event that Mr. Jones’ employment is terminated without cause or as a result of a change in control, he shall be entitled to a severance payment equal to 24 months of his then current annual base pay and continuation of medical and dental insurance coverages (plus life insurance if termination is a result of a change in control) for 24 months. If the termination is a result of a change in control, Mr. Jones is also entitled to two times his average annual cash bonus for the two prior full employment years. The severance payment is payable in accordance with the normal payroll cycle with payment in full no later than December 31
st
of the second calendar year, following the calendar year in which the eligible termination occurred. In the event of a termination because of a change in control, 50% of the payment will be paid on the 90
th
day following the date of termination and 50% will be paid on a monthly basis over two years.
|
(3)
|
If Mr. Jones' termination is a result of a change in control as defined in the respective award agreements, all unvested options, shares of restricted stock or other equity awards then held by the named executive officer shall immediately vest under the terms of the respective agreements under which such equity awards were granted.
|
(4)
|
Represents the value of accelerated unvested stock calculated by multiplying the number of shares of unvested restricted stock held by Mr. Jones by $15.60, the closing price of our common stock on the New York Stock Exchange on December 31, 2016.
|
(5)
|
Pursuant to the TSR Equity Award Agreement, upon a Change in Control (as defined therein), awards through the date of the Change in Control will vest based upon the TSR performance from the beginning of the performance period through the date of the Change in Control and at the target award level for the pro rata portion of the performance period commencing on the date immediately following the Change in Control through the end of the performance period,plus accrued and unpaid dividends on previously unvested equity awards.
|
(6)
|
Pursuant to the Performance Equity Award Agreement, upon a Change in Control (as defined therein), awards through the date of the Change in Control will vest based upon the cumulative Free Cash Flow per share performance from the beginning of the performance period through the date of the Change in Control and at the target award level for the pro rata portion of the performance period commencing on the date immediately following the Change in Control through the end of the performance period,plus accrued and unpaid dividends on previously unvested equity awards.
|
(7)
|
Pursuant to the Severance Plan, provided Mr. Jones' employment is terminated without cause or as a result of a change in control, he would be entitled to continuation of medical and dental coverage (plus life insurance if termination is a result of a change in control) for 24 months.
|
(8)
|
Under Covanta’s long-term disability policy, Covanta provides medical and dental coverage for up to 24 months provided Mr. Jones meets the definition of “disabled” pursuant to that policy.
|
(9)
|
Reflects the estimated present value of the proceeds payable to Mr. Jones' beneficiaries upon his death.
|
Executive Officer Benefits and
Payment upon Termination or
Change in Control
|
|
Voluntary
Termination
|
|
Retirement
|
|
Not for Cause
Termination
|
|
For Cause
Termination
|
|
Change in
Control
|
|
Death
|
|
Disability
|
|
||||||||||||||
Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash
|
|
$
|
15,385
|
|
(1)
|
$
|
15,385
|
|
(1)
|
$
|
600,000
|
|
(2)
|
$
|
15,385
|
|
(1)
|
$
|
911,981
|
|
(2)
|
$
|
15,385
|
|
(1)
|
$
|
15,385
|
|
(1)
|
Stock Option
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Restricted Stock
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
345,930
|
|
(3)(4)
|
$
|
—
|
|
|
$
|
—
|
|
|
Growth Equity Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
548,814
|
|
(3)(5)
|
$
|
—
|
|
|
$
|
—
|
|
|
TSR Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36,720
|
|
(6)
|
$
|
—
|
|
|
$
|
—
|
|
|
Performance Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
207,862
|
|
(7)
|
$
|
—
|
|
|
$
|
—
|
|
|
Benefits and Perquisites:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Health Care
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,902
|
|
(8)
|
$
|
—
|
|
|
$
|
29,824
|
|
(8)
|
$
|
—
|
|
|
$
|
47,194
|
|
(9)
|
Life Insurance Benefits
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
750,000
|
|
(10)
|
$
|
—
|
|
|
Total:
|
|
$
|
15,385
|
|
|
$
|
15,385
|
|
|
$
|
628,902
|
|
|
$
|
15,385
|
|
|
$
|
2,081,131
|
|
|
$
|
765,385
|
|
|
$
|
62,579
|
|
|
(1)
|
Assumes that two weeks of annual base salary have not been paid in accordance with our standard payment practices.
|
(2)
|
In the event that Mr. Helgeson’s employment is terminated without cause or good reason or as a result of a change in control, he shall be entitled to a severance payment equal to 18 months of his then current annual base pay and continuation of medical and dental insurance coverages (plus life insurance if termination is a result of a change in control) for 18 months. If the termination is a result of a change in control, he is entitled to one and a half times his average cash bonus received during the two prior full employment years. The severance payment is payable in accordance with the normal payroll cycle with payment in full no later than December 31st of the second calendar year, following the calendar year in which the eligible termination occurred. In the event of a termination because of a change in control, 50% of the payment will be paid on the 90th day following the date of termination and 50% will be paid on a monthly basis over two years.
|
(3)
|
If Mr. Helgeson’s termination is a result of a change in control as defined in the respective award agreements, all unvested shares of restricted stock or other equity awards then held by Mr. Helgeson shall immediately vest under the terms of the respective agreements under which such equity awards were granted.
|
(4)
|
Represents the value of accelerated unvested restricted stock calculated by multiplying the number of shares of unvested restricted stock held by Mr. Helgeson by $15.60, the closing price of our common stock on the New York Stock Exchange on December 31, 2016.
|
(5)
|
Represents the value of accelerated unvested growth equity awards and corresponding unvested cash dividends calculated by multiplying the number of shares of unvested growth equity awards held by Mr. Helgeson by $15.60, the closing price of our common stock on the New York Stock Exchange on December 31, 2016.
|
(6)
|
Pursuant to the TSR Equity Award Agreement, upon a Change in Control (as defined therein), awards through the date of the Change in Control will vest based upon the TSR performance from the beginning of the performance period through the date of the Change in Control and at the target award level for the pro rata portion of the performance period commencing on the date immediately following the Change in Control through the end of the performance period, plus accrued and unpaid dividends on previously unvested equity awards.
|
(7)
|
Pursuant to the Performance Equity Award Agreement, upon a Change in Control (as defined therein), awards through the date of the Change in Control will vest based upon the cumulative Free Cash Flow per share performance from the beginning of the performance period through the date of the Change in Control and at the target award level for the pro rata portion of the performance period commencing on the date immediately following the Change in Control through the end of the performance period, plus accrued and unpaid dividends on previously unvested equity awards.
|
(8)
|
Pursuant to the Severance Plan, provided Mr. Helgeson's employment terminated without cause or good reason or as a result of a Change in Control, he would be entitled to continuation of medical and dental coverage (plus life insurance if termination is a result of a change in control) for 18 months.
|
(9)
|
Under Covanta’s long-term disability policy, Covanta provides medical and dental coverage for up to 24 months provided Mr. Helgeson meets the definition of “disabled” pursuant to that policy.
|
(10)
|
Reflects the estimated present value of the proceeds payable to Mr. Helgeson’s beneficiaries upon his death.
|
Executive Officer Benefits and
Payment upon Termination or
Change in Control
|
|
Voluntary
Termination
|
|
Retirement
|
|
Not for Cause
Termination
|
|
For Cause
Termination
|
|
Change in
Control
|
|
Death
|
|
Disability
|
|
||||||||||||||
Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash
|
|
$
|
13,462
|
|
(1)
|
$
|
13,462
|
|
(1)
|
$
|
525,000
|
|
(2)
|
$
|
13,462
|
|
(1)
|
$
|
525,000
|
|
(2)
|
$
|
13,462
|
|
(1)
|
$
|
13,462
|
|
(1)
|
Stock Option
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Restricted Stock
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
307,086
|
|
(3)(4)
|
$
|
—
|
|
|
$
|
—
|
|
|
Growth Equity Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
TSR Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Performance Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
242,511
|
|
(5)
|
$
|
—
|
|
|
$
|
—
|
|
|
Benefits and Perquisites:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Health Care
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,902
|
|
(6)
|
$
|
—
|
|
|
$
|
29,709
|
|
(6)
|
$
|
—
|
|
|
$
|
47,194
|
|
(7)
|
Life Insurance Benefits
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
700,000
|
|
(8)
|
$
|
—
|
|
|
Total:
|
|
$
|
13,462
|
|
|
$
|
13,462
|
|
|
$
|
553,902
|
|
|
$
|
13,462
|
|
|
$
|
1,104,306
|
|
|
$
|
713,462
|
|
|
$
|
60,656
|
|
|
(1)
|
Assumes that two weeks of annual base salary have not been paid in accordance with our standard payment practices.
|
(2)
|
In the event that Mr. de Castro’s employment is terminated without cause or good reason or as a result of a change in control, he shall be entitled to a severance payment equal to 18 months of his then current annual base pay and continuation of medical and dental insurance coverages (plus life insurance if termination is a result of a change in control) for 18 months. If the termination is a result of a change in control, he is entitled to one and a half times his average cash bonus received during the two prior full employment years. The severance payment is payable in accordance with the normal payroll cycle with payment in full no later than December 31st of the second calendar year, following the calendar year in which the eligible termination occurred. In the event of a termination because of a change in control, 50% of the payment will be paid on the 90th day following the date of termination and 50% will be paid on a monthly basis over two years.
|
(3)
|
If Mr. de Castro's termination is a result of a change in control as defined in the respective award agreements, all unvested options, shares of restricted stock or other equity awards then held by Mr. de Castro shall immediately vest under the terms of the respective agreements under which such equity awards were granted.
|
(4)
|
Represents the value of accelerated unvested restricted stock calculated by multiplying the number of shares of unvested restricted stock held by Mr. de Castro by $15.60, the closing price of our common stock on the New York Stock Exchange on December 31, 2016.
|
(5)
|
Pursuant to the Performance Equity Award Agreement, upon a Change in Control (as defined therein), awards through the date of the Change in Control will vest based upon the cumulative Free Cash Flow per share performance from the beginning of the performance period through the date of the Change in Control and at the target award level for the pro rata portion of the performance period commencing on the date immediately following the Change in Control through the end of the performance period, plus accrued and unpaid dividends on previously unvested equity awards.
|
(6)
|
Pursuant to the Severance Plan, provided Mr. de Castro's employment terminated without cause or good reason or as a result of a change in control, he would be entitled to continuation of medical and dental coverage (plus life insurance if termination is a result of a change in control) for 18 months.
|
(7)
|
Under Covanta’s long-term disability policy, Covanta provides medical and dental coverage for up to 24 months provided Mr. de Castro meets the definition of “disabled” pursuant to that policy.
|
(8)
|
Reflects the estimated present value of the proceeds payable to Mr. de Castro’s beneficiaries upon his death.
|
Executive Officer Benefits and
Payment upon Termination or
Change in Control
|
|
Voluntary
Termination
|
|
Retirement
|
|
Not for Cause
Termination
|
|
For Cause
Termination
|
|
Change in
Control
|
|
Death
|
|
Disability
|
|
||||||||||||||
Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash
|
|
$
|
14,615
|
|
(1)
|
$
|
14,615
|
|
(1)
|
$
|
570,000
|
|
(2)
|
$
|
14,615
|
|
(1)
|
$
|
896,692
|
|
(2)
|
$
|
14,615
|
|
(1)
|
$
|
14,615
|
|
(1)
|
Stock Option
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Restricted Stock
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
404,945
|
|
(3)(4)
|
$
|
—
|
|
|
$
|
—
|
|
|
Growth Equity Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
906,459
|
|
(3)(5)
|
$
|
—
|
|
|
$
|
—
|
|
|
TSR Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37,860
|
|
(6)
|
$
|
—
|
|
|
$
|
—
|
|
|
Performance Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
263,293
|
|
(7)
|
$
|
—
|
|
|
$
|
—
|
|
|
Benefits and Perquisites:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Health Care
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,902
|
|
(8)
|
$
|
—
|
|
|
$
|
29,778
|
|
(8)
|
$
|
—
|
|
|
$
|
47,194
|
|
(9)
|
Life Insurance Benefits
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
760,000
|
|
(10)
|
$
|
—
|
|
|
Total:
|
|
$
|
14,615
|
|
|
$
|
14,615
|
|
|
$
|
598,902
|
|
|
$
|
14,615
|
|
|
$
|
2,539,027
|
|
|
$
|
774,615
|
|
|
$
|
61,809
|
|
|
(1)
|
Assumes that two weeks of annual base salary have not been paid in accordance with our standard payment practices.
|
(2)
|
In the event that Mr. Simpson’s employment is terminated without cause or good reason or as a result of a change in control, he shall be entitled to a severance payment equal to 18 months of his then current annual base pay and continuation of medical and dental insurance coverages (plus life insurance if termination is a result of a change in control) for 18 months. If the termination is a result of a change in control, he is entitled to one and a half times his average cash bonus received during the two prior full employment years. The severance payment is payable in accordance with the normal payroll cycle with payment in full no later than December 31st of the second calendar year, following the calendar year in which the eligible termination occurred. In the event of a termination because of a change in control, 50% of the payment will be paid on the 90th day following the date of termination and 50% will be paid on a monthly basis over two years.
|
(3)
|
If Mr. Simpson’s termination is a result of a change in control as defined in the respective award agreements, all unvested options, shares of restricted stock or other equity awards then held by Mr. Simpson shall immediately vest under the terms of the respective agreements under which such equity awards were granted.
|
(4)
|
Represents the value of accelerated unvested restricted stock calculated by multiplying the number of shares of unvested restricted stock held by Mr. Simpson by $15.60, the closing price of our common stock on the New York Stock Exchange on December 31, 2016.
|
(5)
|
Represents the value of accelerated unvested growth equity awards and corresponding unvested cash dividends calculated by multiplying the number of shares of unvested growth equity awards held by Mr. Simpson by $15.60, the closing price of our common stock on the New York Stock Exchange on December 31, 2016.
|
(6)
|
Pursuant to the TSR Equity Award Agreement, upon a Change in Control (as defined therein), awards through the date of the Change in Control will vest based upon the TSR performance from the beginning of the performance period through the date of the Change in Control and at the target award level for the pro rata portion of the performance period commencing on the date immediately following the Change in Control through the end of the performance period, plus accrued and unpaid dividends on previously unvested equity awards.
|
(7)
|
Pursuant to the Performance Equity Award Agreement, upon a Change in Control (as defined therein), awards through the date of the Change in Control will vest based upon the cumulative Free Cash Flow per share performance from the beginning of the performance period through the date of the Change in Control and at the target award level for the pro rata portion of the performance period commencing on the date immediately following the Change in Control through the end of the performance period, plus accrued and unpaid dividends on previously unvested equity awards.
|
(8)
|
Pursuant to the Severance Plan, provided Mr. Simpson’s employment terminated without cause or good reason or as a result of a change in control, he would be entitled to continuation of medical and dental coverage (plus life insurance if termination is a result of a change in control) for 18 months.
|
(9)
|
Under Covanta’s long-term disability policy, Covanta provides medical and dental coverage for up to 24 months provided Mr. Simpson meets the definition of “disabled” pursuant to that policy.
|
(10)
|
Reflects the estimated present value of the proceeds payable to Mr. Simpson’s beneficiaries upon his death.
|
Executive Officer Benefits and
Payment upon Termination or
Change in Control
|
|
Voluntary
Termination
|
|
Retirement
|
|
Not for Cause
Termination
|
|
For Cause
Termination
|
|
Change in
Control
|
|
Death
|
|
Disability
|
|
||||||||||||||
Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash
|
|
$
|
13,462
|
|
(1)
|
$
|
13,462
|
|
(1)
|
$
|
525,000
|
|
(2)
|
$
|
13,462
|
|
(1)
|
$
|
743,109
|
|
(2)
|
$
|
13,462
|
|
(1)
|
$
|
13,462
|
|
(1)
|
Stock Option
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Restricted Stock
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
367,895
|
|
(3)(4)
|
$
|
—
|
|
|
$
|
—
|
|
|
Growth Equity Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
TSR Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,381
|
|
(5)
|
$
|
—
|
|
|
$
|
—
|
|
|
Performance Awards
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
242,511
|
|
(6)
|
$
|
—
|
|
|
$
|
—
|
|
|
Benefits and Perquisites:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Health Care
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,902
|
|
(7)
|
$
|
—
|
|
|
$
|
29,709
|
|
(7)
|
$
|
—
|
|
|
$
|
47,194
|
|
(8)
|
Life Insurance Benefits
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
700,000
|
|
(9)
|
$
|
—
|
|
|
Total:
|
|
$
|
13,462
|
|
|
$
|
13,462
|
|
|
$
|
553,902
|
|
|
$
|
13,462
|
|
|
$
|
1,416,605
|
|
|
$
|
713,462
|
|
|
$
|
60,656
|
|
|
(1)
|
Assumes that two weeks of annual base salary have not been paid in accordance with our standard payment practices.
|
(2)
|
In the event that Mr. Veenhof’s employment is terminated without cause or good reason or as a result of a Change in Control (as defined therein), he shall be entitled to a severance payment equal to 18 months of his then current annual base pay and continuation of medical and dental insurance coverages (plus life insurance if termination is a result of a change in control) for 18 months. If the termination is a result of a change in control, he is entitled to one and a half times his average cash bonus received during the two prior full employment years. The severance payment is payable in accordance with the normal payroll cycle with payment in full no later than December 31st of the second calendar year, following the calendar year in which the eligible termination occurred. In the event of a termination because of a change in control, 50% of the payment will be paid on the 90th day following the date of termination and 50% will be paid on a monthly basis over two years.
|
(3)
|
If Mr. Veenhof’s termination is a result of a change in control as defined in the respective award agreements, all unvested options, shares of restricted stock or other equity awards then held by Mr. Veenhof shall immediately vest under the terms of the respective agreements under which such equity awards were granted.
|
(4)
|
Represents the value of accelerated unvested restricted stock calculated by multiplying the number of shares of unvested restricted stock held by Mr. Veenhof by $15.60, the closing price of our common stock on the New York Stock Exchange on December 31, 2016.
|
(5)
|
Pursuant to the TSR Equity Award Agreement, upon a Change in Control (as defined therein), awards through the date of the Change in Control will vest based upon the TSR performance from the beginning of the performance period through the date of the Change in Control and at the target award level for the pro rata portion of the performance period commencing on the date immediately following the Change in Control through the end of the performance period, plus accrued and unpaid dividends on previously unvested equity awards.
|
(6)
|
Pursuant to the Performance Equity Award Agreement, upon a Change in Control (as defined therein), awards through the date of the Change in Control will vest based upon the cumulative Free Cash Flow per share performance from the beginning of the performance period through the date of the Change in Control and at the target award level for the pro rata portion of the performance period commencing on the date immediately following the Change in Control through the end of the performance period, plus accrued and unpaid dividends on previously unvested equity awards.
|
(7)
|
Pursuant to the Severance Plan, provided Mr. Veenhof’s employment terminated without cause or good reason or as a result of a Change in Control (as defined therein), he would be entitled to continuation of medical and dental coverage (plus life insurance if termination is a result of a change in control) for 18 months.
|
(8)
|
Under Covanta’s long-term disability policy, Covanta provides medical and dental coverage for up to 24 months provided Mr. Veenhof meets the definition of “disabled” pursuant to that policy.
|
(9)
|
Reflects the estimated present value of the proceeds payable to Mr. Veenhof’s beneficiaries upon his death.
|
Named Executive Officer
|
|
Restrictive Covenant
|
|
Survival Period
|
Stephen J. Jones
|
|
Non-Compete
|
|
24 months
|
|
|
Non-Solicit Customers
|
|
24 months
|
|
|
Non-Solicit Employees
|
|
24 months
|
|
|
Confidentiality
|
|
60 months
|
|
|
|
||
Bradford J. Helgeson, Michael J. de Castro, Timothy J. Simpson, Derek W. Veenhof
|
|
Non-Compete
|
|
18 months
|
|
|
Non-Solicit Customers
|
|
18 months
|
|
|
Non-Solicit Employees
|
|
18 months
|
|
|
Confidentiality
|
|
60 months
|
•
|
beneficial ownership of our common stock by (1) SZ Investments together with its affiliate EGI-Fund (05-07); (2) Dimensional Fund Advisors L.P.; and (3) The Vanguard Group, which are the only beneficial owners known to us of 5% or more of our common stock; and
|
•
|
beneficial ownership of our common stock by (1) all of our current directors, (2) those executive officers named in the Summary Compensation Table included in this proxy statement, referred to as the “named executive officers” in this proxy statement, and (3) all of our current directors and executive officers together as a group.
|
Name and Address of Beneficial Owner
|
|
Number of Shares
Beneficially Owned
|
|
Approximate
Percent of Class
|
||
SZ Investments L.L.C.
(1)
|
|
12,949,182
|
|
|
9.9
|
%
|
Two North Riverside Plaza, Suite 600, Chicago, Illinois 60606
|
|
|
|
|
||
The Vanguard Group
(2)
|
|
9,057,216
|
|
|
6.9
|
%
|
100 Vanguard Blvd. Malvern, PA 19355
|
|
|
|
|
||
Dimensional Fund Advisors LP
(3)
|
|
7,065,778
|
|
|
5.4
|
%
|
Building One, 6300 Bee Cave Road, Austin, Texas 78746
|
|
|
|
|
(1)
|
Based on a Schedule 13D/A filed with the SEC on July 25, 2014, this includes the shares owned as follows:
|
(2)
|
Based on a Schedule 13G filed with the SEC on February 10, 2017, The Vanguard Group, Inc. has sole voting power with respect to 73,902 shares of our common stock; shared voting power with respect to 13,212 shares of our common stock; sole dispositive power with respect to 8,977,490 shares of our common stock and shared dispositive power with respect to 79,726 shares of our common stock.
|
(3)
|
Based on a Schedule 13G filed with the SEC on February 9, 2017, Dimensional Fund Advisors LP, in its role as investment advisor to certain investment companies, commingled funds, group trusts and separate accounts, has sole voting power with respect to 6,870,352 of these shares of our common stock and sole dispositive power with respect to 7,065,778 of these shares of our common stock.
|
Name
|
|
Number of Shares
Beneficially Owned
|
|
Stock Units
(1)
|
|
Approximate
Percent of Class
|
|||
David M. Barse
|
|
98,960
|
|
|
4,500
|
|
|
*
|
|
Ronald J. Broglio
|
|
4,529
|
|
|
—
|
|
|
*
|
|
Peter C.B. Bynoe
|
|
75,122
|
|
|
4,500
|
|
|
*
|
|
Michael J. de Castro
|
|
53,554
|
|
|
—
|
|
|
*
|
|
Linda J. Fisher
|
|
40,157
|
|
|
4,500
|
|
|
*
|
|
Bradford J. Helgeson
|
|
86,620
|
|
(2)
|
—
|
|
|
*
|
|
Joseph M. Holsten
|
|
127,538
|
|
(2)
|
4,500
|
|
|
*
|
|
Stephen J. Jones
|
|
253,383
|
|
|
—
|
|
|
*
|
|
Anthony J. Orlando
|
|
610,791
|
|
(2)
|
4,500
|
|
|
*
|
|
Danielle Pletka
|
|
—
|
|
|
2,775
|
|
|
*
|
|
Michael W. Ranger
|
|
—
|
|
|
2,775
|
|
|
*
|
|
Robert S. Silberman
|
|
66,500
|
|
|
4,500
|
|
|
*
|
|
Timothy J. Simpson
|
|
230,132
|
|
(2)
|
—
|
|
|
*
|
|
Jean Smith
|
|
94,641
|
|
|
—
|
|
|
*
|
|
Derek W. Veenhof
|
|
109,275
|
|
(2)
|
—
|
|
|
*
|
|
Samuel Zell
|
|
13,112,263
|
|
(3)
|
27,591
|
|
|
10.0
|
%
|
All Executive Officers and Directors as a group (20 persons)
|
|
15,244,257
|
|
(4)
|
|
|
11.6
|
%
|
(1)
|
Represents the number of shares of common stock payable to a non-employee director pursuant to time-based restricted stock units when the director leaves the Board (assuming all such units have vested) based on deferrals made by such directors. None of these deferred stock units have voting rights.
|
(2)
|
Includes shares underlying currently exercisable options held by (a) Mr. Helgeson to purchase 30,000 shares of common stock at an exercise price of $23.30 per share, (b) Mr. Holsten to purchase 25,000 shares of common stock at an exercise price of $20.58 per share, (c) Mr. Orlando to purchase 270,000 shares of common stock at an exercise price of $20.52 per share and 200,000 shares of common stock at an exercise price of $24.76 per share and (d) Mr. Simpson and Mr. Veenhof to purchase 120,000 and 25,000 shares, respectively, of common stock at an exercise price of $20.52 per share. A total of 415,000 options held by Messrs. Orlando, Simpson and Veenhof subsequently expired unexercised on March 19, 2017.
|
(3)
|
Mr. Zell disclaims beneficial ownership as to (a) 10,921,682 shares beneficially owned by SZ Investments, 8,275,682 of which shares are pledged as security to loans and (b) 2,027,500 shares beneficially owned by Fund 05-07, 883,739 of which shares are pledged as security to loans. SZ Investments and Fund 05-07 are each indirectly controlled by various trusts established for the benefit of Mr. Zell and members of his family, the trustee of each of which is Chai Trust. Mr. Zell is not a director or officer of Chai Trust and thus disclaims beneficial ownership of all such shares, except to the extent of his pecuniary interest therein. Also, Mr. Zell disclaims beneficial ownership as to 25,418 shares beneficially owned by the Helen Zell Revocable Trust, the trustee of which is Helen Zell, Mr. Zell’s spouse.
|
(4)
|
Includes shares underlying currently exercisable options to purchase 787,000 shares of common stock that our directors and executive officers have the right to acquire within 60 days of the date of this table. A total of 532,000 of these options subsequently expired unexercised on March 19, 2017.
|
|
|
2016
|
|
2015
|
||||
Audit Fees
|
|
$
|
4,486
|
|
|
$
|
3,666
|
|
Audit-Related Fees
|
|
—
|
|
|
—
|
|
||
Tax Fees
|
|
582
|
|
|
365
|
|
||
All Other Fees
|
|
2
|
|
|
2
|
|
||
Total
|
|
$
|
5,070
|
|
|
$
|
4,033
|
|
|
|
PROXY VOTING INSTRUCTIONS
|
|
|
|
|
|
|
|
|
|
INTERNET
-
Access
“www.voteproxy.com”
and follow the on-screen instructions or scan the QR code with your smartphone. Have your proxy card available when you access the web page.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEPHONE
-
Call toll-free
1-800-PROXIES
(1-800-776-9437) in the United States or
1-718-921-8500
from foreign countries from any touch-tone telephone and follow the instructions. Have your proxy card available when you call.
Vote online/phone until 11:59 PM EDT the day before the meeting.
|
|
|
|
|
|
|
|
|
|
COMPANY NUMBER
|
|
|
|
|
|
|
|
|
|
|
MAIL
-
Sign, date and mail your proxy card in the envelope provided as soon as possible.
IN PERSON
-
You may vote your shares in person by attending the Annual Meeting.
|
|
|
|
ACCOUNT NUMBER
|
|
|
|
|
|
|
|
||
GO GREEN
- e-Consent makes it easy to go paperless. With e-Consent, you can quickly access your proxy material statements and other eligible documents online, while reducing costs, clutter and paper waste. Enroll today via www.amstock.com to enjoy online access.
|
|
|
|
|
|
|
The Notice of Annual Meeting of Stockholders, Proxy Statement
and Annual Report on Form 10-K are available at
http://www.astproxyportal.com/ast/01602/
|
i
Please detach along perforated line and mail in the envelope provided
IF
you are not voting via telephone or the Internet.
i
|
Signature of Stockholder
|
|
|
|
Date:
|
|
|
|
Signature of Stockholder
|
|
|
|
Date:
|
|
|
n
|
Note:
Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.
|
n
|
¢
|
1.1
|
14475
|
¢
|