|
Sincerely,
JEFFREY M. SOLOMON
Chair and Chief Executive Officer |
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| DATE | | |
Thursday, June 23, 2022
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| TIME | | |
10:00 AM ET
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| RECORD DATE | | |
May 16, 2022
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Important Notice Regarding the Availability of Proxy Materials for the 2022 Annual Meeting of Stockholders to Be Held on June 23, 2022. The Proxy Statement and Annual Report to stockholders are also available at www.cowen.com/annualreports.html
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APPENDIX A – 2020 EQUITY INCENTIVE PLAN, AS AMENDED AND RESTATED | | | | | | | |
| | | | | | | |
APPENDIX C – PROPOSED THIRD AMENDED AND RESTATED BY-LAWS OF COWEN INC. | | | | | | | |
| |
PROPOSAL 1
|
| |
ELECTION OF DIRECTORS
☑
The Board recommends a vote “FOR” the election of the director nominees
|
| |
| | | |
JEFFREY M.
SOLOMON |
| |
BRETT H.
BARTH |
| |
KATHERINE E.
DIETZE |
| |
GREGG A.
GONSALVES |
| |
LORENCE H.
KIM, M.D. |
| |
STEVEN
KOTLER |
| |
LAWRENCE E.
LEIBOWITZ |
| |
MARGARET L.
POSTER |
| |
DOUGLAS A.
REDIKER |
|
| | KEY SKILLS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Audit & Financial Expertise
|
| | | | | | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | | | | |
| |
Corporate Strategy & Business Development
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | | | | |
| |
Corporate Governance / Ethics
|
| | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | |
| |
Executive Leadership & Management
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | |
| |
Financial Services
|
| | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | |
| |
Global Business & Operations
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | |
| |
Investment Banking
|
| | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | |
| |
Investment Management
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | | | | | | | | | | | | | | | • | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Talent Development / Compensation
|
| | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | |
| |
Institutional Markets
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | | | | |
| |
Risk Oversight
|
| | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | | | | |
| |
Social Responsibility
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | |
| |
Sustainability/ESG
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | | | | |
| | Technology | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
•
|
| | | | | | | | | | | | | | | | |
| | KEY EXPERIENCES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
CEO, President or COO
|
| | | | | • | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | |
| |
CFO or Other Financial Expert
|
| | | | | | | | | | | | | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | | | | |
| |
Private Company Management & Governance
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | |
| |
Public Company Management & Governance
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | | | | | | | | | | | |
| |
Non-Profit
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | | | | |
| | DEMOGRAPHICS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Gender | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Male
|
| | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | • | | | |
| |
Female
|
| | | | | | | | | | | | | | | | | | | • | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | • | | | | | | | | | | |
| | Race / Ethnicity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | African American / Black | | | | | | | | | | | | | | | | | | | | | | | | | |
|
•
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Asian / Pacific Islander | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
•
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Hispanic / LatinX | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Native American | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
White / Caucasian
|
| | | | | • | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | | | | | | | | • | | | | | | | • | | | | | | | • | | | | | | | • | | | |
| | Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Age | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | At May 16, 2022 | | | | | | 56 | | | | | | | 50 | | | | | | | 64 | | | | | | | 54 | | | | | | | 48 | | | | | | | 75 | | | | | | | 62 | | | | | | | 70 | | | | | | | 62 | | | |
| | BOARD TENURE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Years on Board | | | | | | 11 | | | | | | | 4 | | | | | | | 11 | | | | | | | 2 | | | | | | | 0 | | | | | | | 12 | | | | | | | 4 | | | | | | | 3 | | | | | | | 7 | | | |
| | OTHER PUBLIC COMPANY BOARDS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Number of Public Boards | | | | | | 0 | | | | | | | 1 | | | | | | | 1 | | | | | | | 1 | | | | | | | 0 | | | | | | | 0 | | | | | | | 0 | | | | | | | 0 | | | | | | | 0 | | | |
| | | |
2021 BOARD COMMITTEES’ MEMBERSHIP
|
| |||||||||||||||
|
NAME
|
| |
Audit
|
| |
Nominating and
Corporate Governance |
| |
Compensation
|
| |||||||||
|
BRETT H. BARTH
INDEPENDENT LEAD DIRECTOR |
| | | | | | | | |
|
•
|
| | | |
|
•
|
| |
|
KATHERINE E. DIETZE
INDEPENDENT |
| | |
|
•
|
| | | | | | | | | | | | | |
|
GREGG GONSALVES
INDEPENDENT |
| | |
|
•
|
| | | |
|
•
|
| | | | | | | |
|
STEVEN KOTLER
INDEPENDENT |
| | |
|
•
|
| | | |
|
•
|
| | | | | | | |
|
LAWRENCE E. LEIBOWITZ
INDEPENDENT |
| | | | | | | | | | | | | | |
|
•
|
| |
|
MARGARET POSTER
INDEPENDENT FINANCIAL EXPERT |
| | |
|
•
|
| | | |
|
•
|
| | | |
|
•
|
| |
|
DOUG REDIKER
INDEPENDENT |
| | | | | | | | | | | | | | |
|
•
|
| |
| |
Director
|
| | |
Fees Earned
Paid in Cash ($) |
| | |
Stock Awards
($)(1) |
| | |
All Other
Compensation ($)(2) |
| | |
Total
|
| | ||||||||||||
| |
Brett H. Barth
|
| | | | | 162,500 | | | | | | | 162,500 | | | | | | | 5,921 | | | | | | | 330,921 | | | |
| |
Katherine E. Dietze
|
| | | | | 142,500 | | | | | | | 142,500 | | | | | | | — | | | | | | | 285,000 | | | |
| |
Gregg A. Gonsalves
|
| | | | | 125,000 | | | | | | | 125,000 | | | | | | | — | | | | | | | 250,000 | | | |
| |
Steven Kotler
|
| | | | | 135,000 | | | | | | | 135,000 | | | | | | | — | | | | | | | 270,000 | | | |
| |
Lawrence E. Leibowitz
|
| | | | | 62,500 | | | | | | | 187,500 | | | | | | | — | | | | | | | 250,000 | | | |
| |
Margaret L. Poster
|
| | | | | 125,000 | | | | | | | 125,000 | | | | | | | 2,193 | | | | | | | 252,193 | | | |
| |
Douglas A. Rediker(3)
|
| | | | | — | | | | | | | 250,000 | | | | | | | — | | | | | | | 250,000 | | | |
| Advisory Vote on Executive Compensation and Stockholder Engagement | | | | 27 | |
| 2021 Performance Overview | | | | 29 | |
| Key Features of Our Compensation Program | | | | 30 | |
| Compensation Philosophy and Objectives | | | | 31 | |
| Compensation Determinations for 2021 | | | | 32 | |
| Compensation Program and Payments | | | | 36 | |
| Setting Compensation | | | | 40 | |
| Relationship of Compensation Policies and Practices to Risk Management | | | | 41 | |
| Clawback Policy | | | | 42 | |
| Executive Officer Stock Ownership Guidelines | | | | 42 | |
| Anti-Hedging Policy | | | | 42 | |
| Tax and Accounting Impact and Policy | | | | 43 | |
| |
What We Heard from Stockholders
|
| | | Action Taken by Company Management and the Compensation Committee |
| |
| | Stockholders recommended that the Company provide additional disclosure regarding the pay determination process. | | | | We have continued to enhance the description in the “Compensation and Philosophy and Objectives” section below to provide a more robust and detailed discussion related to the Compensation Committee’s determinations related to firmwide compensation as well as the compensation of our named executive officers. | | |
| | Stockholders recommended that the Company use after-tax Return on Common Equity, or ROCE, as an appropriate criterion for performance-based compensation as well as some form of total shareholder return, or TSR, as an additional measure used in the determination of performance-based equity compensation. | | | | The Company added a TSR modifier as a component of Performance Shares awarded in respect of 2020 and in respect of 2021 increased the effect the TSR modifier can have on the Performance Shares. In addition, the Company changed to after-tax ROCE for Performance Shares awarded in connection with 2021 compensation. | | |
| | Stockholders recommended that the Company consider strengthening the performance goals underlying the Performance Shares given the strong operating performance of the Company in 2020 and 2021. | | | | In addition to changing to after-tax ROCE, the Company increased the performance goals underlying the Performance Shares which will require continued strong operating performance by the Company to achieve the target value contemplated by the Performance Shares. | | |
| |
Performance Level*
|
| | |
3-Year After-Tax AROCE**
|
| | |
Payout Rate***
|
| |
| |
Below Threshold
|
| | |
Below 8%
|
| | |
0% Payout
|
| |
| |
Threshold
|
| | |
8%
|
| | |
50% Payout
|
| |
| |
Above Threshold / Below Target
|
| | |
10%
|
| | |
75% Payout
|
| |
| |
Target
|
| | |
12.5%
|
| | |
100% Payout
|
| |
| |
Above Target
|
| | |
15%
|
| | |
125% Payout
|
| |
| |
Above Target / Below Maximum
|
| | |
17.5%
|
| | |
150% Payout
|
| |
| |
Maximum (capped)
|
| | |
Greater than 20%
|
| | |
200% Payout
|
| |
| |
Performance Level
|
| | |
Pre-Tax 2021
3-Year AROCE |
| | |
After-Tax 2022
3-Year AROCE |
| | |
Payout Rate
|
| |
| |
Below Threshold
|
| | |
Below 8%
|
| | |
Below 8%
|
| | |
0% Payout
|
| |
| |
Threshold
|
| | |
8%
|
| | |
8%
|
| | |
50% Payout
|
| |
| |
Above Threshold / Below Target (Level Introduced in 2021)
|
| | |
—
|
| | |
10%
|
| | |
75% Payout
|
| |
| |
Target
|
| | |
10%
|
| | |
12.5%
|
| | |
100% Payout
|
| |
| |
Above Target
|
| | |
12%
|
| | |
15%
|
| | |
125% Payout
|
| |
| |
Above Target / Below Maximum
(Level Introduced in 2021) |
| | |
—
|
| | |
17.5%
|
| | |
150% Payout
|
| |
| |
Maximum (capped)
|
| | |
Greater than 15%
|
| | |
Greater than 20%
|
| | |
200% Payout
|
| |
| |
Relative TSR Position
|
| | |
Modifier*
|
| | |||
| |
25th percentile and below
|
| | | | | 0.8 | | | |
| |
50th percentile
|
| | | | | 1.0 | | | |
| |
75th percentile and above
|
| | | | | 1.2 | | | |
| | Chief Executive Officer | | | |
8× Base Salary
|
| | | | $ | 8,000,000 | | | |
| |
Other Executive Officers
|
| | |
3× Base Salary
|
| | | | $ | 2,100,000 | | | |
| | Name & Principal Position |
| | |
Year
|
| | |
Salary
($) |
| | |
Bonus
($)(1) |
| | |
Stock
Awards ($)(2) |
| | |
All Other
Compensation ($) |
| | |
Total
($) |
| | ||||||||||||||||||
| |
Jeffrey M. Solomon
Chief Executive Officer |
| | | | | 2021 | | | | | | | 1,000,000 | | | | | | | 16,000,000 | | | | | | | 8,383,130 | | | | | | | 3,176,410(3) | | | | | | | 28,559,540 | | | |
| | | 2020 | | | | | | | 1,000,000 | | | | | | | 13,000,000 | | | | | | | 3,157,115 | | | | | | | 1,833,388 | | | | | | | 18,990,503 | | | | |||||
| | | 2019 | | | | | | | 950,000 | | | | | | | 1,300,000 | | | | | | | 3,588,250 | | | | | | | 1,640,563 | | | | | | | 7,478,814 | | | | |||||
| |
Stephen A. Lasota
Chief Financial Officer |
| | | | | 2021 | | | | | | | 700,000 | | | | | | | 4,613,000 | | | | | | | 595,292 | | | | | | | 384,635(3) | | | | | | | 6,292,927 | | | |
| | | 2020 | | | | | | | 700,000 | | | | | | | 4,847,295 | | | | | | | 899,110 | | | | | | | 373,870 | | | | | | | 6,820,275 | | | | |||||
| | | 2019 | | | | | | | 700,000 | | | | | | | 1,212,500 | | | | | | | 854,236 | | | | | | | 353,358 | | | | | | | 3,120,094 | | | | |||||
| |
John Holmes
Chief Operating Officer |
| | | | | 2021 | | | | | | | 700,000 | | | | | | | 5,056,000 | | | | | | | 595,292 | | | | | | | 405,860(3) | | | | | | | 6,757,152 | | | |
| | | 2020 | | | | | | | 700,000 | | | | | | | 5,347,295 | | | | | | | 927,220 | | | | | | | 386,842(3) | | | | | | | 7,361,357 | | | | |||||
| | | 2019 | | | | | | | 700,000 | | | | | | | 927,220 | | | | | | | 926,630 | | | | | | | 361,137 | | | | | | | 3,235,267 | | | | |||||
| |
Owen S. Littman
General Counsel and Secretary |
| | | | | 2021 | | | | | | | 700,000 | | | | | | | 4,613,000 | | | | | | | 595,292 | | | | | | | 389,075(3) | | | | | | | 6,299,141 | | | |
| | | 2020 | | | | | | | 700,000 | | | | | | | 4,847,295 | | | | | | | 899,110 | | | | | | | 366,686 | | | | | | | 6,818,910 | | | | |||||
| | | 2019 | | | | | | | 700,000 | | | | | | | 1,212,500 | | | | | | | 890,424 | | | | | | | 351,955 | | | | | | | 3,154,879 | | | |
| |
Other Compensation ($)
|
| | |
Jeffrey M.
Solomon |
| | |
Stephen A.
Lasota |
| | |
John
Holmes |
| | |
Owen S.
Littman |
| | ||||||||||||
| |
Vested Deferred Cash Awards
|
| | | | | 3,052,196 | | | | | | | 354,410 | | | | | | | 382,436 | | | | | | | 365,897 | | | |
| |
Dividend Equivalents
|
| | | | | 70,722 | | | | | | | 23.029 | | | | | | | 23,424 | | | | | | | 23,178 | | | |
| |
Tax and Financial Planning
|
| | | | | 53,492 | | | | | | | 7,195 | | | | | | | — | | | | | | | 1,774 | | | |
| | | | | |
Estimated Future Payouts Under
Equity Incentive Plan Awards(1) |
| | |||||||||||||||||||||||||||||||||||||||
| | | | | |
Grant Date
|
| | |
Corporate
Action Date |
| | |
Threshold
(#) |
| | |
Target
(#) |
| | |
Maximum
(#) |
| | |
All Other
Stock Awards: Number of Shares of Stock or Units
(#)(2)
|
| | |
Grant Date
Fair Value of Stock Awards ($)(3) |
| | |||||||||||||||
| |
Jeffrey M. Solomon
|
| | |
2/17/2021
|
| | |
2/4/2021
|
| | | | | | | | | | | | — | | | | | | | — | | | | | | | 175,717 | | | | | | | 6,081,565 | | | |
|
2/17/2021
|
| | |
2/4/2021
|
| | | | | 33,250 | | | | | | | 66,500 | | | | | | | 133,000 | | | | | | | — | | | | | | | 2,301,565 | | | | |||||
| |
Stephen A. Lasota
|
| | |
2/17/2021
|
| | |
2/4/2021
|
| | | | | 8,600 | | | | | | | 17,200 | | | | | | | 34,400 | | | | | | | 19,490 | | | | | | | 595,292 | | | |
| |
John Holmes
|
| | |
2/17/2021
|
| | |
2/4/2021
|
| | | | | 8,600 | | | | | | | 17,200 | | | | | | | 34,400 | | | | | | | 21,099 | | | | | | | 595,292 | | | |
| |
Owen S. Littman
|
| | |
2/17/2021
|
| | |
2/4/2021
|
| | | | | 8,600 | | | | | | | 17,200 | | | | | | | 34,400 | | | | | | | 19,490 | | | | | | | 595,292 | | | |
| | | | | |
Stock Awards
|
| | ||||||||||||||||||||||||
| | | | | |
Number of
Shares that Have Not Vested (#) |
| | |
Market Value
of Shares that Have Not Vested ($)(1) |
| | |
Equity
Incentive Plan Awards: Number of Unearned Units That Have Not Vested (#) |
| | |
Equity
Incentive Plan Awards: Market Value of Unearned Units That Have Not Vested ($)(1) |
| | ||||||||||||
| | Jeffrey M. Solomon | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
2019 RSU Award(2)
|
| | | | | 80,435 | | | | | | | 2,903,704 | | | | | | | — | | | | | | | — | | | |
| |
2019 PSA Award(3)
|
| | | | | — | | | | | | | — | | | | | | | 28,000 | | | | | | | 1,010,800 | | | |
| |
2020 RSU Award(4)
|
| | | | | 97,449 | | | | | | | 3,517,909 | | | | | | | — | | | | | | | — | | | |
| |
2020 PSA Award(5)
|
| | | | | — | | | | | | | — | | | | | | | 27,000 | | | | | | | 974,700 | | | |
| |
2021 RSU Award(6)
|
| | | | | 131,788 | | | | | | | — | | | | | | | — | | | | | | | 4,757,547 | | | |
| |
2021 PSA Award(7)
|
| | | | | — | | | | | | | — | | | | | | | 33,250 | | | | | | | 1,200,325 | | | |
| | Stephen A. Lasota | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
2018 Incentive Award(8)
|
| | | | | 8,993 | | | | | | | 324,647 | | | | | | | — | | | | | | | — | | | |
| |
2019 RSU Award(2)
|
| | | | | 9,413 | | | | | | | 339,809 | | | | | | | — | | | | | | | — | | | |
| |
2019 PSA Award(3)
|
| | | | | — | | | | | | | — | | | | | | | 17,500 | | | | | | | 631,750 | | | |
| |
2020 RSU Award(4)
|
| | | | | 14,618 | | | | | | | 527,710 | | | | | | | — | | | | | | | — | | | |
| |
2020 PSA Award(5)
|
| | | | | — | | | | | | | — | | | | | | | 17,000 | | | | | | | 613,700 | | | |
| |
2021 PSA Award(7)
|
| | | | | — | | | | | | | — | | | | | | | 8,600 | | | | | | | 310,460 | | | |
| | John Holmes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
2018 Incentive Award(8)
|
| | | | | 17,986 | | | | | | | 649,295 | | | | | | | — | | | | | | | — | | | |
| |
2019 RSU Award(2)
|
| | | | | 11,543 | | | | | | | 416,702 | | | | | | | — | | | | | | | — | | | |
| |
2019 PSA Award(3)
|
| | | | | — | | | | | | | — | | | | | | | 17,500 | | | | | | | 631,750 | | | |
| |
2020 RSU Award(4)
|
| | | | | 15,825 | | | | | | | 571,283 | | | | | | | — | | | | | | | — | | | |
| |
2020 PSA Award(5)
|
| | | | | — | | | | | | | — | | | | | | | 17,000 | | | | | | | 613,700 | | | |
| |
2021 PSA Award(7)
|
| | | | | — | | | | | | | — | | | | | | | 8,600 | | | | | | | 310,460 | | | |
| | Owen S. Littman | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
2018 Incentive Award(8)
|
| | | | | 8,993 | | | | | | | 324,647 | | | | | | | — | | | | | | | — | | | |
| |
2019 RSU Award(2)
|
| | | | | 10,476 | | | | | | | 378,184 | | | | | | | — | | | | | | | — | | | |
| |
2019 PSA Award(3)
|
| | | | | — | | | | | | | — | | | | | | | 17,500 | | | | | | | 631,750 | | | |
| |
2020 RSU Award(4)
|
| | | | | 14,618 | | | | | | | 527,710 | | | | | | | — | | | | | | | — | | | |
| |
2020 PSA Award(5)
|
| | | | | — | | | | | | | — | | | | | | | 17,000 | | | | | | | 613,700 | | | |
| |
2021 PSA Award(7)
|
| | | | | — | | | | | | | — | | | | | | | 8,600 | | | | | | | 310,460 | | | |
| |
Name
|
| | |
Number of
Shares Acquired on Vesting |
| | |
Value Realized
on Vesting ($)(1) |
| | ||||||
| |
Jeffrey M. Solomon
|
| | | | | 202,391 | | | | | | | 7,100,633 | | | |
| |
Stephen A. Lasota
|
| | | | | 73,973 | | | | | | | 2,332,098 | | | |
| |
John Holmes
|
| | | | | 75,239 | | | | | | | 2,383,275 | | | |
| |
Owen S. Littman
|
| | | | | 74,506 | | | | | | | 2,354,095 | | | |
| | | | | | | | | | | | | | | | |
Triggering Events
|
| | ||||||||||||||||||||||||
| |
Name
|
| | |
Type of Payment
|
| | |
Voluntary
Termination ($) |
| | |
Involuntary
Termination ($) |
| | |
Involuntary
Termination in Connection with a Change in Control(4)(5) ($) |
| | |
Death
($) |
| | |
Disability
($) |
| | |||||||||||||||
| |
Jeffrey M. Solomon
|
| | | Cash Severance(1) | | | | | | — | | | | | | | 28,035,271 | | | | | | | 40,685,251 | | | | | | | 22,936,125 | | | | | | | 22,936,125 | | | |
|
Equity Acceleration(2)
|
| | | | | — | | | | | | | 14,364,984 | | | | | | | 14,364,984 | | | | | | | 14,364,984 | | | | | | | 14,364,984 | | | | |||||
| Total | | | | | | — | | | | | | | 42,400,255 | | | | | | | 55,050,235 | | | | | | | 37,301,109 | | | | | | | 37,301,109 | | | | |||||
| |
Stephen A. Lasota
|
| | | Cash Severance(3) | | | | | | — | | | | | | | 5,818,455 | | | | | | | 9,731,952 | | | | | | | 4,318,455 | | | | | | | 4,318,455 | | | |
|
Equity Acceleration(2)
|
| | | | | — | | | | | | | 2,748,076 | | | | | | | 2,748,076 | | | | | | | 2,748,076 | | | | | | | 2,748,076 | | | | |||||
| Total | | | | | | — | | | | | | | 8,566,531 | | | | | | | 12,480,028 | | | | | | | 7,066,531 | | | | | | | 7,066,531 | | | | |||||
| |
John Holmes
|
| | | Cash Severance(3) | | | | | | — | | | | | | | 6,177.378 | | | | | | | 10,377.375 | | | | | | | 4,677.378 | | | | | | | 4,677.378 | | | |
|
Equity Acceleration(2)
|
| | | | | — | | | | | | | 3,193,189 | | | | | | | 3,193,189 | | | | | | | 3,193,189 | | | | | | | 3,193,189 | | | | |||||
| Total | | | | | | — | | | | | | | 9,370,567 | | | | | | | 13,570,564 | | | | | | | 7,870,567 | | | | | | | 7,870,567 | | | | |||||
| |
Owen S. Littman
|
| | | Cash Severance(3) | | | | | | — | | | | | | | 5,849,283 | | | | | | | 9,749,281 | | | | | | | 4,349,283 | | | | | | | 4,349,283 | | | |
|
Equity Acceleration(2)
|
| | | | | — | | | | | | | 2,786,451 | | | | | | | 2,786,451 | | | | | | | 2,786,451 | | | | | | | 2,786,451 | | | | |||||
| Total | | | | | | — | | | | | | | 8,635,734 | | | | | | | 12,535,732 | | | | | | | 7,135,734 | | | | | | | 7,135,734 | | | |
| |
Beneficial Owner
|
| | |
Amount and Nature of
Beneficial Ownership |
| | |
Percent of
Class |
| | ||||||
| | Brett H. Barth | | | | | | 95,789(1) | | | | | | | * | | | |
| | Katherine E. Dietze | | | | | | 12,007(2) | | | | | | | * | | | |
| | Gregg A. Gonsalves | | | | | | —(3) | | | | | | | * | | | |
| | Lorence Kim | | | | | | 30,000 | | | | | | | | | | |
| | Steven Kotler | | | | | | 2,500(4) | | | | | | | * | | | |
| | Lawrence E. Leibowitz | | | | | | 8,000(5) | | | | | | | * | | | |
| | Margaret L. Poster | | | | | | 13,547(6) | | | | | | | * | | | |
| | Douglas A. Rediker | | | | | | —(7) | | | | | | | * | | | |
| | Jeffrey M. Solomon | | | | | | 659,410 | | | | | | | 2.4% | | | |
| | John Holmes | | | | | | 216,082 | | | | | | | * | | | |
| | Stephen A. Lasota | | | | | | 253,370 | | | | | | | * | | | |
| | Owen S. Littman | | | | | | 201,075(8) | | | | | | | * | | | |
| |
All directors and executive officers
as a group (12 persons) |
| | | | | 1,491,780 | | | | | | | 5.4% | | | |
| |
Name and Address of Beneficial Owner
|
| | |
Amount and Nature of
Beneficial Ownership |
| | |
Percent of Class
|
| | ||||||
| |
BlackRock, Inc.(1)
55 East 52nd Street New York, NY 10055 |
| | | | | 2,656,131 | | | | | | | 9.56% | | | |
| |
The Vanguard Group(2)
100 Vanguard Boulevard Malvern, PA 19355 |
| | | | | 1,665,334 | | | | | | | 6.00% | | | |
| |
Azora Capital L.P.(3)
3350 Virginia Street, Suite 219 Coconut Grove, FL 33133 |
| | | | | 1,497,441 | | | | | | | 5.39% | | | |
| | | | | |
2021
|
| | |
2020
|
| | ||||||
| |
Audit Fees(1)
|
| | | | $ | 6,221,827 | | | | | | $ | 5,653,283 | | | |
| |
Audit-Related Fees(2)
|
| | | | | 50,156 | | | | | | | 47,274 | | | |
| |
Tax Fees(3)
|
| | | | | 1,096,363 | | | | | | | 1,143,687 | | | |
| |
All Other Fees(4)
|
| | | | | 235,422 | | | | | | | 86,100 | | | |
| |
Total
|
| | | | $ | 7,603,768 | | | | | | $ | 6,930,345 | | | |
| |
PROPOSAL 3
|
| |
RATIFICATION OF THE SELECTION OF OUR INDEPENDENT PUBLIC ACCOUNTANT
☑
The Board recommends a vote “FOR” ratification of the selection of KPMG LLP as our independent registered public accounting firm for 2022
|
| |
| |
PROPOSAL 4
|
| |
APPROVAL OF AN INCREASE IN THE SHARES AVAILABLE FOR ISSUANCE UNDER THE 2020 EQUITY INCENTIVE PLAN
☑
The Board recommends a vote “FOR” approval of the increase in shares available for issuance under the 2020 Equity Incentive Plan.
|
| |
| | | | | |
Number of
Shares |
| | |||
| | (A) Shares Outstanding December 31, 2020 | | | | | | 26,845,628 | | | |
| |
(B) Plus: Shares Issued in 2021 under the Equity Incentive Plan
|
| | | | | 1,711,900 | | | |
| |
(C) Minus: Shares Repurchased under the Board-Approved Share Repurchase Program
|
| | | | | (4,371,291) | | | |
| |
(D) Total 2021 Decrease in Shares Outstanding Before Shares Issued in Connection with Acquisitions/Other [(B) — (C)]
|
| | | | | (2,659,391) | | | |
| |
(E) 2021 Shares Outstanding Before Shares Issued in Connection with Acquisitions / Other [(A) — (D)]
|
| | | | | 24,186,237 | | | |
| |
(F) Plus: Shares Issued in connection with Acquisitions/Other
|
| | | | | 3,592,727 | | | |
| | (G) Shares Outstanding December 31, 2021 [(E) + (F)] | | | | | | 27,778,964 | | | |
| |
(H) 2021 Net Increase in Shares Outstanding Following Share Repurchases [(G) — (A)]
|
| | | | | 933,336 | | | |
| |
PROPOSAL 6
|
| |
THE STOCKHOLDER PROPOSAL
☒
The Board recommends a vote “AGAINST” the stockholder proposal
|
| |
| |
WHAT VOTE IS REQUIRED AND HOW WILL MY VOTES BE COUNTED?
|
| | ||||||||||||
| | | | | | Board’s Recommendation |
| | |
Vote Required to Adopt Proposal
|
| | | Effect if I do not specify how I want my shares voted* |
| |
| |
PROPOSAL 1:
|
| | |
FOR
|
| | |
The eight nominees for director will be elected by an affirmative vote of a majority of the votes cast by holders of our Class A common stock present online or by proxy and entitled to vote on the proposal at the Annual Meeting.
|
| | |
FOR
|
| |
| | Election of Directors | | | ||||||||||||
| |
PROPOSAL 2:
|
| | |
FOR
|
| | |
If the advisory vote on the compensation of our named executive officers included in this proxy statement receives more votes “for” than “against,” then it will be deemed to be approved.
|
| | |
FOR
|
| |
| | Advisory Vote on Named Executive Officer Compensation | | | ||||||||||||
| |
PROPOSAL 3:
|
| | |
FOR
|
| | |
To be approved by our stockholders, this proposal requires the affirmative vote of a majority of the votes cast by holders of our Class A common stock present online or by proxy and entitled to vote on the proposal at the Annual Meeting.
|
| | |
FOR
|
| |
| | Ratification of the Selection of Our Independent Public Accountant | | |
| |
WHAT VOTE IS REQUIRED AND HOW WILL MY VOTES BE COUNTED?
|
| | ||||||||||||
| | | | | | Board’s Recommendation |
| | |
Vote Required to Adopt Proposal
|
| | | Effect if I do not specify how I want my shares voted* |
| |
| |
PROPOSAL 4:
|
| | |
FOR
|
| | |
To be approved by our stockholders, this proposal requires the affirmative vote of a majority of the votes cast by holders of our Class A common stock present online or by proxy and entitled to vote on the proposal at the Annual Meeting.
|
| | |
FOR
|
| |
| | Approval of the Increase in the Shares Available for Issuance Under the 2020 Equity Incentive Plan | | | ||||||||||||
| |
PROPOSAL 5:
|
| | |
FOR
|
| | |
To be approved by our stockholders, this proposal requires the affirmative vote of a majority of the votes cast by holders of our Class A common stock present online or by proxy and entitled to vote on the proposal at the Annual Meeting.
|
| | |
FOR
|
| |
| | Approval of a Charter Amendment to Permit Requests for Special Meetings of Stockholders by Holders of 25% of our Issued and Outstanding Capital Stock Entitled to Vote on the Matters to be Presented | | | ||||||||||||
| |
PROPOSAL 6:
|
| | |
AGAINST
|
| | |
To be approved by our stockholders, this non-binding proposal requires the affirmative vote of a majority of the votes cast by holders of our Class A common stock present online or by proxy and entitled to vote on the proposal at the Annual Meeting.
|
| | |
AGAINST
|
| |
| | The Stockholder Proposal | | |