|
THURSDAY, MAY 25, 2023
|
| | |
8:00 A.M. (EASTERN TIME)
|
|
| | | | By Order of the Board of Directors, | |
| | | |
![]() |
|
| | | | Daniel L. Heard | |
|
Little Rock, Arkansas
|
| |
Executive Vice President — General Counsel and Secretary
|
|
| April 13, 2023 | | | | |
| |
Important notice regarding the availability of proxy materials for the 2023 Annual Meeting of Stockholders to be held on May 25, 2023: The Company’s Proxy Statement and Annual Report on Form 10-K for the fiscal year ended December 31, 2022 are available electronically at http://investor.uniti.com and www.proxyvote.com.
|
| |
|
Date:
|
| | May 25, 2023 | |
|
Time:
|
| | 8:00 a.m. (Eastern time) | |
|
Location:
|
| |
Via the Internet:
www.virtualshareholdermeeting.com/UNIT2023 |
|
|
Record Date:
|
| | Holders of our common stock at the close of business on March 24, 2023 | |
Proposals
|
| |
Required
Approval |
| |
Board
Recommendation |
| |
Page
Reference |
| |||
1. | | | Election of directors | | |
Majority of Votes Cast
for Each Nominee |
| |
FOR each
nominee |
| | | |
2. | | | Approval of an increase in the number of shares available for issuance under the Long-Term Incentive Plan and an extension of its term | | |
Majority of Votes Cast
|
| |
FOR
|
| | | |
3. | | | Advisory vote to approve executive compensation | | |
Majority of Votes Cast
|
| |
FOR
|
| | | |
4. | | | Ratification of auditor | | |
Majority of Votes Cast
|
| |
FOR
|
| | |
|
![]() |
| |
Annual election of directors
|
| |
![]() |
| |
Active stockholder engagement
|
|
|
![]() |
| |
Majority voting and resignation policy for director elections
|
| |
![]() |
| |
Prohibit hedging and unapproved pledging of our common stock
|
|
|
![]() |
| |
Independent directors regularly meet without management present
|
| |
![]() |
| |
80% of board nominees are independent (CEO is only management director nominee) and include two female board nominees (50% of independent director nominees)
|
|
|
![]() |
| |
Board regularly assesses its performance through board and committee self-evaluations
|
| |
![]() |
| |
No poison pill
|
|
|
![]() |
| |
Independent Chairman
|
| |
![]() |
| |
Robust stock ownership guidelines
|
|
| | | | | | | | | | | | | | | |
Committee Memberships
|
| ||||||
|
Name
|
| |
Age
|
| |
Director
Since |
| |
Principal
Occupation |
| |
Financial
Expert |
| |
Audit
|
| |
Compensation
|
| |
Governance
|
|
|
Jennifer S. Banner
|
| |
63
|
| |
2015
|
| |
Executive Director of the University of Tennessee Haslam College of Business Forum for Emerging Enterprises and Private Business
|
| |
![]() |
| |
![]() |
| |
—
|
| |
![]() |
|
|
Scott G. Bruce
|
| |
61
|
| |
2016
|
| |
President of Radius Global Infrastructure, Inc.
|
| |
![]() |
| |
![]() |
| |
![]() |
| |
—
|
|
|
Francis X. (“Skip”)
Frantz |
| |
69
|
| |
2015
|
| |
Chairman of the Board of Uniti
|
| |
![]() |
| |
—
|
| |
![]() |
| |
![]() |
|
|
Kenneth A. Gunderman
|
| |
52
|
| |
2015
|
| |
President and CEO of Uniti
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
|
|
Carmen Perez-Carlton
|
| |
62
|
| |
2019
|
| |
Telecommunications Consultant
|
| |
![]() |
| |
![]() |
| |
—
|
| |
![]() |
|
| | | | | | | | | |
What We Do:
|
| |
What We Don’t Do:
|
| ||||||
![]() |
| |
Align pay with performance by linking a substantial portion of compensation to the achievement of predefined performance metrics
|
| |
![]() |
| |
Do NOT provide tax gross-ups in any circumstance
|
|
![]() |
| |
Retain an independent compensation consultant
|
| |
![]() |
| |
Do NOT provide excessive perquisites for executives
|
|
![]() |
| |
Require compliance with stock ownership guidelines for executives and non-employee directors
|
| |
![]() |
| |
Do NOT provide guaranteed bonuses
|
|
![]() |
| |
Include double-trigger change-in-control provisions in equity awards
|
| |
![]() |
| |
Do NOT provide discount stock options or stock appreciation rights
|
|
![]() |
| |
Place caps on incentive award opportunities and conduct annual risk assessment
|
| |
![]() |
| |
Do NOT pay dividends on performance-based restricted stock units prior to vesting
|
|
![]() |
| |
Maintain a clawback policy
|
| |
![]() |
| |
Do NOT add back to our equity compensation plan reserves any shares tendered as payment for shares withheld for taxes
|
|
| | | | | 1 | | | |
| | | | | 6 | | | |
| | | | | 6 | | | |
| | | | | 6 | | | |
| | | | | 6 | | | |
| | | | | 8 | | | |
| | | | | 9 | | | |
| | | | | 9 | | | |
| | | | | 10 | | | |
| | | | | 10 | | | |
| | | | | 11 | | | |
| | | | | 11 | | | |
| | | | | 11 | | | |
| | | | | 12 | | | |
| | | | | 13 | | | |
| | | | | 16 | | | |
| | | | | 26 | | | |
| | | | | 28 | | | |
| | | | | 29 | | | |
| | | | | 30 | | | |
| | | | | 30 | | | |
| | | | | 40 | | | |
| | | | | 41 | | | |
| | | | | 43 | | | |
| | | | | 44 | | | |
| | | | | 46 | | | |
| | | | | 47 | | | |
| | | | | 48 | | | |
| | | | | 50 | | | |
| | | | | 52 | | | |
| | | | | 57 | | | |
| | | | | 58 | | | |
| | | | | 60 | | | |
| | | | | 60 | | | |
| | | | | 60 | | | |
| | | | | 60 | | | |
| | | | | 62 | | | |
| | | | | 62 | | | |
| | | | | 63 | | | |
| | | | | 64 | | | |
| | | | | 78 | | |
|
![]() |
| |
go to the website www.proxyvote.com and follow the instructions at that website;
|
|
|
![]() |
| |
call 1-800-690-6903 and follow the instructions provided on the call; or
|
|
|
![]() |
| |
if you received a proxy card in the mail, complete, sign, date and mail the proxy card in the return envelope provided to you.
|
|
Proposals
|
| |
Required
Approval |
| |||
1. | | | Election of directors | | |
Majority of Votes Cast
for Each Nominee |
|
2 | | | Approval of an increase in the number of shares available for issuance under the Long-Term Incentive Plan and an extension of its term | | |
Majority of Votes Cast
|
|
3. | | | Advisory vote to approve executive compensation | | |
Majority of Votes Cast
|
|
4. | | | Ratification of auditor | | |
Majority of Votes Cast
|
|
Proposals
|
| |
Abstentions
|
| |
Broker Non-Votes
|
| |||
1. | | | Election of directors | | |
No Effect
|
| |
No Effect
|
|
2. | | | Approval of an increase in the number of shares available for issuance under the Long-Term Incentive Plan and an extension of its term | | |
No Effect
|
| |
No Effect
|
|
3. | | | Advisory vote to approve executive compensation | | |
No Effect
|
| |
No Effect
|
|
4. | | | Ratification of auditor | | |
No Effect
|
| |
Not Applicable
|
|
| | |
Committee Memberships
|
| ||||||
Board Member
|
| |
Audit
|
| |
Compensation
|
| |
Governance
|
|
Jennifer S. Banner
|
| |
![]() |
| |
—
|
| |
![]() |
|
Scott G. Bruce
|
| |
![]() |
| |
![]() |
| |
—
|
|
Francis X. (“Skip”) Frantz
|
| |
—
|
| |
![]() |
| |
![]() |
|
Kenneth A. Gunderman | | |
—
|
| |
—
|
| |
—
|
|
Carmen Perez-Carlton
|
| |
![]() |
| |
—
|
| |
![]() |
|
David L. Solomon
|
| |
![]() |
| |
![]() |
| |
—
|
|
Number Of Meetings Held In Fiscal 2022 | | |
4
|
| |
4
|
| |
4
|
|
BOARD DIVERSITY MATRIX (AS OF APRIL 13, 2023)
|
| | ||||||||||||||
Total Number of Directors
|
| |
6
|
| ||||||||||||
| | |
Female
|
| |
Male
|
| |
Non-Binary
|
| |
Did Not
Disclose Gender |
| | ||
Part I: Gender Identity | | | | | | | | | | | | | | | ||
Directors | | |
2
|
| |
4
|
| |
—
|
| |
—
|
| | ||
Part II: Demographic Background | | | | | | | | | | | | | | | ||
African American or Black | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Alaskan Native or Native American | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Asian | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Hispanic or Latinx | | |
1
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Native Hawaiian or Pacific Islander | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
White | | |
2
|
| |
4
|
| |
—
|
| |
—
|
| | ||
Two or More Races or Ethnicities | | |
1
|
| |
—
|
| |
—
|
| |
—
|
| | ||
LGBTQ+ | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Did Not Disclose Demographics Background | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
BOARD DIVERSITY MATRIX (AS OF APRIL 14, 2022)
|
| | ||||||||||||||
Total Number of Directors
|
| |
6
|
| ||||||||||||
| | |
Female
|
| |
Male
|
| |
Non-Binary
|
| |
Did Not
Disclose Gender |
| | ||
Part I: Gender Identity | | | | | | | | | | | | | | | ||
Directors | | |
2
|
| |
4
|
| |
—
|
| |
—
|
| | ||
Part II: Demographic Background | | | | | | | | | | | | | | | ||
African American or Black | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Alaskan Native or Native American | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Asian | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Hispanic or Latinx | | |
1
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Native Hawaiian or Pacific Islander | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
White | | |
2
|
| |
4
|
| |
—
|
| |
—
|
| | ||
Two or More Races or Ethnicities | | |
1
|
| |
—
|
| |
—
|
| |
—
|
| | ||
LGBTQ+ | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| | ||
Did Not Disclose Demographics Background | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
|
Name
|
| |
Fees Earned or
Paid in Cash ($) |
| |
Stock
Awards ($)(1) |
| |
All Other
Compensation ($) |
| |
Total ($)
|
| ||||||||||||
| Jennifer S. Banner | | | | | 100,000 | | | | | | 160,817 | | | | | | — | | | | | | 260,817 | | |
| Scott G. Bruce | | | | | 100,000 | | | | | | 172,642 | | | | | | — | | | | | | 272,642 | | |
| Francis X. (“Skip”) Frantz | | | | | 250,000 | | | | | | 165,549 | | | | | | — | | | | | | 415,549 | | |
| Carmen Perez-Carlton | | | | | 100,000 | | | | | | 172,642 | | | | | | — | | | | | | 272,642 | | |
| David L. Solomon | | | | | 100,000 | | | | | | 163,178 | | | | | | — | | | | | | 263,178 | | |
| |
BOARD RECOMMENDATION
|
| |
| |
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE “FOR” EACH OF THE FOREGOING NOMINEES.
|
| |
| |
PROXIES SOLICITED BY THE BOARD OF DIRECTORS WILL BE VOTED “FOR” EACH OF THE FOREGOING NOMINEES UNLESS STOCKHOLDERS SPECIFY A CONTRARY VOTE.
|
| |
Types of Awards
|
| |
Number of
Shares |
| |||
Options
|
| | | | 0 | | |
Restricted Stock Awards
|
| | | | 1,356,389 | | |
Performance-Based Restricted Stock Units
|
| | | | 847,147 | | |
Total Awards
|
| | | | 2,203,536 | | |
Shares of common stock outstanding as of December 31, 2022
|
| | | | 235,829,485 | | |
Fiscal Year(1)
|
| |
Restricted Stock
Grants |
| |
PBRSUs
Earned(2) |
| |
WASO(3)
|
| |
Unadjusted
Burn Rate |
| ||||||||||||
2022 | | | | | 925,059 | | | | | | 200,979 | | | | | | 235,567,179 | | | | | | 0.48% | | |
2021 | | | | | 691,241 | | | | | | 224,077 | | | | | | 232,887,679 | | | | | | 0.39% | | |
2020 | | | | | 996,037 | | | | | | — | | | | | | 203,599,845 | | | | | | 0.49% | | |
| | |
Number of
Shares of Restricted Stock |
| |
Dollar Value
($)(1) |
| |
Number of
PBRSUs |
| |
Dollar Value
($)(1) |
| ||||||||||||
Executive Group (5 persons) | | | | | 214,033 | | | | | $ | 2,360,784 | | | | | | 321,237 | | | | | $ | 4,632,238 | | |
Employee Group | | | | | 635,339 | | | | | $ | 6,905,371 | | | | | | 103,773 | | | | | $ | 1,496,407 | | |
Director Group | | | | | 75,687 | | | | | $ | 836,507 | | | | | | — | | | | | $ | — | | |
Plan category
|
| |
Number of
securities to be issued upon exercise of outstanding options, warrants and rights |
| |
Weighted-
average exercise price of outstanding options, warrants and rights |
| |
Number of
securities available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
| |||||||||
| | |
(a)
|
| |
(b)
|
| |
(c)
|
| |||||||||
Equity compensation plans approved by security holders | | | | | — | | | | | | — | | | | | | 3,610,669(1) | | |
Equity compensation plans not approved by security holders
|
| | | | — | | | | | | — | | | | | | — | | |
Total | | | | | — | | | | | | — | | | | | | 3,610,669 | | |
| |
BOARD RECOMMENDATION
|
| |
| |
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE “FOR” PROPOSAL NO. 2.
|
| |
| |
PROXIES SOLICITED BY THE BOARD OF DIRECTORS WILL BE VOTED “FOR” PROPOSAL NO. 2 UNLESS STOCKHOLDERS SPECIFY A CONTRARY VOTE.
|
| |
|
Name and Address of
Beneficial Owner |
| |
Amount and Nature
of Beneficial Ownership |
| |
Percentage of Shares
of Common Stock Beneficially Owned |
| ||||||
| Jennifer S. Banner | | | | | 115,487 | | | | | | * | | |
| Scott G. Bruce | | | | | 139,883 | | | | | | * | | |
| Paul Bullington | | | | | 241,200 | | | | | | * | | |
| Francis X. (“Skip”) Frantz | | | | | 264,789 (1) | | | | | | * | | |
| Michael Friloux | | | | | 121,552 | | | | | | * | | |
| Kenneth A. Gunderman | | | | | 1,372,596 | | | | | | * | | |
| Daniel L. Heard | | | | | 241,823 | | | | | | * | | |
| Carmen Perez-Carlton | | | | | 93,748 | | | | | | * | | |
| David L. Solomon | | | | | 86,884 | | | | | | * | | |
| All current directors and executive officers as a group (ten persons) | | | | | 2,862,712 | | | | | | * | | |
|
The Vanguard Group
100 Vanguard Blvd. Malvern, PA 19355 |
| | | | 38,272,931 (2) | | | | | | 16.04% | | |
|
BlackRock, Inc.
55 East 52nd Street New York, NY 10055 |
| | | | 38,923,690 (3) | | | | | | 16.31% | | |
What We Do:
|
| |
What We Don’t Do:
|
| ||||||
![]() |
| |
Align pay with performance by linking a substantial portion of compensation to the achievement of predefined performance metrics
|
| |
![]() |
| |
Do NOT provide tax gross-ups in any circumstance
|
|
![]() |
| |
Retain an independent compensation consultant
|
| |
![]() |
| |
Do NOT provide excessive perquisites for executives
|
|
![]() |
| |
Require compliance with stock ownership guidelines for executives and non-employee directors
|
| |
![]() |
| |
Do NOT provide guaranteed bonuses
|
|
![]() |
| |
Include double-trigger change-in-control provisions in equity awards
|
| |
![]() |
| |
Do NOT provide discount stock options or stock appreciation rights
|
|
![]() |
| |
Place caps on incentive award opportunities and conduct an annual risk assessment
|
| |
![]() |
| |
Do NOT pay dividends on performance-based restricted stock units prior to vesting
|
|
![]() |
| |
Maintain a clawback policy
|
| |
![]() |
| |
Do NOT add back to our equity compensation plan reserves any shares tendered as payment for shares withheld for taxes
|
|
|
Name
|
| |
Target Total Direct
Compensation |
| |||
|
Kenneth A. Gunderman
|
| | | $ | 4,531,250 | | |
|
Paul Bullington
|
| | | $ | 1,540,000 | | |
|
Daniel L. Heard
|
| | | $ | 1,400,000 | | |
|
Michael Friloux
|
| | | $ | 1,137,500 | | |
|
Target Pay Mix for
Mr. Gunderman |
| |
Target Pay Mix for
Messrs. Bullington, Heard and Friloux |
|
|
![]() |
| |
![]() |
|
|
Name
|
| |
2021
Base Salary |
| |
2022
Base Salary |
| ||||||
|
Kenneth A. Gunderman
|
| | | $ | 725,000 | | | | | $ | 725,000 | | |
|
Paul Bullington
|
| | | $ | 440,000 | | | | | $ | 440,000 | | |
|
Daniel L. Heard
|
| | | $ | 400,000 | | | | | $ | 400,000 | | |
|
Michael Friloux
|
| | | $ | N/A | | | | | $ | 325,000 | | |
| | | |
Target Cash Incentive(1)
|
| |||||||||
|
Name
|
| |
% of Base Salary
|
| |
Amount
|
| ||||||
|
Kenneth A. Gunderman
|
| | | | 150% | | | | | $ | 1,087,500 | | |
|
Paul Bullington
|
| | | | 100% | | | | | $ | 440,000 | | |
|
Daniel L. Heard
|
| | | | 100% | | | | | $ | 400,000 | | |
|
Michael Friloux
|
| | | | 100% | | | | | $ | 325,000 | | |
| | | |
Threshold
|
| |
Maximum
|
| ||||||
|
Kenneth A. Gunderman
|
| | | | 75% | | | | | | 225% | | |
|
Paul Bullington
|
| | | | 50% | | | | | | 150% | | |
|
Daniel L. Heard
|
| | | | 50% | | | | | | 150% | | |
|
Michael Friloux
|
| | | | 50% | | | | | | 150% | | |
Performance
Measure |
| |
Weighting
|
| |
Description
|
|
Consolidated Adjusted Funds From Operations (“AFFO”) | | |
25% |
| |
Represents consolidated funds from operations, adjusted to exclude the impact of certain non-cash revenues and expenses, capital markets and merger and acquisition transactions and similar items, for the year ended December 31, 2022 as publicly reported. A reconciliation of Consolidated AFFO to net income is included in Appendix B to this Proxy Statement. |
|
Capital Expenditures
|
| |
15%
|
| | Represents non-Growth Capital Improvement net capital expenditures measured on a cash basis based on pre-approved costs as part of annual operating plan for existing and anticipated new business (i.e., contractual, maintenance, special projects, etc.), provided that capital projects not contemplated in the annual operating plan may be adjusted in final metric evaluation. | |
Consolidated Bookings
|
| |
15%
|
| | New monthly recurring revenue bookings across all product lines. | |
Consolidated Installations
|
| |
15%
|
| | New monthly recurring revenue from new service installations, excluding bandwidth upgrades. | |
Consolidated SG&A
|
| |
30%
|
| | Represents selling, general, and administrative expenses across entire company, excluding stock-based compensation expense. | |
Performance
Measures |
| |
Threshold
|
| |
Target
|
| |
Maximum
|
| |
Actual
Results |
|
Consolidated AFFO
|
| |
$442.3M
|
| |
$449.0M
|
| |
$455.7M
|
| |
$455.1M
|
|
Capital Expenditures
|
| |
$171.4M
|
| |
$155.8M
|
| |
$140.2M
|
| |
$168.1M
|
|
Consolidated Bookings
|
| |
$2.9M
|
| |
$3.3M
|
| |
$3.7M
|
| |
$3.6M
|
|
Consolidated Installations
|
| |
$2.7M
|
| |
$3.3M
|
| |
$3.9M
|
| |
$3.3M
|
|
Consolidated SG&A
|
| |
$95.0M
|
| |
$90.5M
|
| |
$86.0M
|
| |
$88.2M
|
|
Name
|
| |
Actual
Payout |
| |
% of Target
Cash Incentive Opportunity |
| ||||||
Kenneth A. Gunderman
|
| | | $ | 1,305,000 | | | | | | 120% | | |
Paul Bullington
|
| | | $ | 528,000 | | | | | | 120% | | |
Daniel L. Heard
|
| | | $ | 480,000 | | | | | | 120% | | |
Michael Friloux
|
| | | $ | 390,000 | | | | | | 120% | | |
|
Name
|
| |
Target Value of
Restricted Shares and PBRSUs ($) |
| |||
|
Kenneth A. Gunderman
|
| | | $ | 2,718,750 | | |
|
Paul Bullington
|
| | | $ | 660,000 | | |
|
Daniel L. Heard
|
| | | $ | 600,000 | | |
|
Michael Friloux
|
| | | $ | 487,500 | | |
|
Performance
Criteria |
| |
Below
Threshold |
| |
Threshold
|
| |
Target
|
| |
Maximum
|
|
|
TSR position within the TSR Comparator Group
|
| |
<33rd percentile
|
| |
33rd percentile
|
| |
50th percentile
|
| |
>75th percentile
|
|
|
Payout Opportunity
|
| |
0% of Target
|
| |
50% of Target
|
| |
100% of Target
|
| |
200% of Target
|
|
|
Name
|
| |
Award Amount
(at target level) |
| |
Grant Date Fair Value
(as reported in the Summary Compensation Table) |
| ||||||
|
Kenneth A. Gunderman
|
| | | $ | 2,718,750 | | | | | $ | 2,967,063 | | |
|
Paul Bullington
|
| | | $ | 660,000 | | | | | $ | 720,286 | | |
|
Daniel L. Heard
|
| | | $ | 600,000 | | | | | $ | 654,803 | | |
|
Michael Friloux
|
| | | $ | 487,500 | | | | | $ | 532,032 | | |
Officer
|
| |
Ownership Level
|
|
Chief Executive Officer
|
| | five times base salary | |
Other Officers
|
| |
three times base salary
|
|
|
Name
|
| |
Guideline
Share Amount |
| |
Shares Owned
|
| ||||||
|
Jennifer S. Banner
|
| | | | 45,086(1) | | | | | | 86,858 | | |
|
Scott G. Bruce
|
| | | | 20,687(2) | | | | | | 110,448 | | |
|
Paul Bullington
|
| | | | 119,026(3) | | | | | | 154,910 | | |
|
Francis X. (“Skip”) Frantz
|
| | | | 45,086(1) | | | | | | 259,290 | | |
|
Michael Friloux
|
| | | | 87,917(3) | | | | | | 62,947 | | |
|
Kenneth A. Gunderman
|
| | | | 326,871(1) | | | | | | 1,011,289 | | |
|
Daniel L. Heard
|
| | | | 108,206(1) | | | | | | 168,439 | | |
|
Ronald J. Mudry
|
| | | | —(4) | | | | | | 122,382 | | |
|
Carmen Perez-Carlton
|
| | | | 62,814(5) | | | | | | 61,095 | | |
|
David L. Solomon
|
| | | | 45,086(1) | | | | | | 86,884 | | |
|
Name and Principal
Position |
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
Awards ($)(1) |
| |
Option
Awards ($) |
| |
Non-Equity
Incentive Plan Compensation ($)(2) |
| |
Change in
Pension Value and Nonqualified Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($)(3) |
| |
Total
($) |
| |||||||||||||||||||||||||||
|
Kenneth A. Gunderman
President and CEO |
| | | | 2022 | | | | | | 725,000 | | | | | | — | | | | | | 2,967,063 | | | | | | — | | | | | | 1,305,000 | | | | | | — | | | | | | 14,135 | | | | | | 5,011,198 | | |
| | | 2021 | | | | | | 725,000 | | | | | | — | | | | | | 3,137,527 | | | | | | — | | | | | | 1,141,875 | | | | | | — | | | | | | 14,042 | | | | | | 5,018,444 | | | |||
| | | 2020 | | | | | | 725,000 | | | | | | — | | | | | | 3,951,703 | | | | | | — | | | | | | 2,092,712 | | | | | | — | | | | | | 18,048 | | | | | | 6,787,463 | | | |||
|
Paul Bullington
SVP—CFO and Treasurer |
| | | | 2022 | | | | | | 440,000 | | | | | | — | | | | | | 720,286 | | | | | | — | | | | | | 528,000 | | | | | | — | | | | | | 13,276 | | | | | | 1,701,562 | | |
| | | 2021 | | | | | | 364,817 | | | | | | 40,000 | | | | | | 170,389 | | | | | | — | | | | | | 182,365 | | | | | | — | | | | | | 115,328 | | | | | | 872,899 | | | |||
|
Daniel L. Heard
EVP—General Counsel and Secretary |
| | | | 2022 | | | | | | 400,000 | | | | | | — | | | | | | 654,803 | | | | | | — | | | | | | 480,000 | | | | | | — | | | | | | 13,522 | | | | | | 1,548,325 | | |
| | | 2021 | | | | | | 400,000 | | | | | | — | | | | | | 646,259 | | | | | | — | | | | | | 510,112 | | | | | | — | | | | | | 13,430 | | | | | | 1,569,801 | | | |||
| | | 2020 | | | | | | 400,000 | | | | | | — | | | | | | 1,190,043 | | | | | | — | | | | | | 769,760 | | | | | | — | | | | | | 17,403 | | | | | | 2,377,206 | | | |||
|
Michael Friloux
EVP—Chief Technology Officer |
| | | | 2022 | | | | | | 325,000 | | | | | | — | | | | | | 532,032 | | | | | | — | | | | | | 390,000 | | | | | | — | | | | | | 14,311 | | | | | | 1,261,343 | | |
|
Name
|
| |
Grant Date Fair Value of PBRSUs
(Probable Payout) ($) |
| |
Grant Date Value of PBRSUs
(Maximum Payout) ($) |
| ||||||
| Kenneth A. Gunderman | | | | | 1,681,141 | | | | | | 2,571,843 | | |
| Paul Bullington | | | | | 408,115 | | | | | | 624,342 | | |
| Daniel L. Heard | | | | | 371,012 | | | | | | 567,582 | | |
| Michael Friloux | | | | | 301,450 | | | | | | 461,164 | | |
| | | | | | | | | |
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards ($)(1) |
| |
Estimated Future Payouts Under
Equity Incentive Plan Awards (#)(2) |
| |
All
Other Stock Awards: Number of Shares of Stock or Units (#)(3) |
| |
Grant
Date Fair Value of Stock and Option Awards($)(4) |
| ||||||||||||||||||||||||||||||||||||
|
Name
|
| |
Grant
Date |
| |
Threshold
($) |
| |
Target
($) |
| |
Maximum
($) |
| |
Threshold
(#) |
| |
Target
(#) |
| |
Maximum
(#) |
| |||||||||||||||||||||||||||||||||
|
Kenneth A. Gunderman
|
| | | | 2/23/22 | | | | | $ | 543,750 | | | | | $ | 1,087,500 | | | | | $ | 1,631,250 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 2/23/22 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 116,584 | | | | | $ | 1,285,922 | | |
| | | | | | 2/23/22 | | | | | | | | | | | | | | | | | | | | | | | | 58,292 | | | | | | 116,584 | | | | | | 233,168 | | | | | | | | | | | $ | 1,681,141 | | |
| Paul Bullington | | | | | 2/23/22 | | | | | $ | 220,000 | | | | | $ | 440,000 | | | | | $ | 660,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 2/23/22 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 28,302 | | | | | $ | 312,171 | | |
| | | | | | 2/23/22 | | | | | | | | | | | | | | | | | | | | | | | | 14,151 | | | | | | 28,302 | | | | | | 56,604 | | | | | | | | | | | $ | 408,115 | | |
| Daniel L. Heard | | | | | 2/23/22 | | | | | $ | 200,000 | | | | | $ | 400,000 | | | | | $ | 600,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 2/23/22 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25,729 | | | | | $ | 283,791 | | |
| | | | | | 2/23/22 | | | | | | | | | | | | | | | | | | | | | | | | 12,865 | | | | | | 25,729 | | | | | | 51,458 | | | | | | | | | | | $ | 371,012 | | |
| Michael Friloux | | | | | 2/23/22 | | | | | $ | 162,500 | | | | | $ | 325,000 | | | | | $ | 487,500 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 2/23/22 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20,905 | | | | | $ | 230,582 | | |
| | | | | | 2/23/22 | | | | | | | | | | | | | | | | | | | | | | | | 10,453 | | | | | | 20,905 | | | | | | 41,810 | | | | | | | | | | | $ | 301,450 | | |
| | |
Stock Awards(1)
|
| |||||||||||||||||||||
Name
|
| |
Number of Shares or
Units of Stock That Have Not Vested (#)(2) |
| |
Market Value of
Shares or Units of Stock That Have Not Vested ($)(3) |
| |
Equity Incentive
Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(3) |
| ||||||||||||
Kenneth A. Gunderman | | | | | 264,140 | | | | | $ | 1,460,694 | | | | | | 74,364(4) | | | | | $ | 411,233 | | |
| | | | | | | | | | | | | | | | | 53,688(5) | | | | | $ | 296,895 | | |
| | | | | | | | | | | | | | | | | 58,292(6) | | | | | $ | 322,355 | | |
Paul Bullington | | | | | 44,083 | | | | | $ | 243,779 | | | | | | 14,151(6) | | | | | $ | 78,255 | | |
Daniel L. Heard | | | | | 55,403 | | | | | $ | 306,379 | | | | | | 22,395(4) | | | | | $ | 123,844 | | |
| | | | | | | | | | | | | | | | | 11,059(5) | | | | | $ | 61,156 | | |
| | | | | | | | | | | | | | | | | 12,865(6) | | | | | $ | 71,143 | | |
Michael Friloux | | | | | 36,314 | | | | | $ | 200,816 | | | | | | 8,206(4) | | | | | $ | 45,379 | | |
| | | | | | | | | | | | | | | | | 7,455(5) | | | | | $ | 41,226 | | |
| | | | | | | | | | | | | | | | | 10,453(6) | | | | | $ | 57,805 | | |
| | | |
Named Executive Officer
|
| |||||||||||||||||||||
|
Vesting Date
|
| |
Kenneth A. Gunderman
|
| |
Paul Bullington
|
| |
Daniel L. Heard
|
| |
Michael Friloux
|
| ||||||||||||
|
2/23/2023
|
| | | | 38,861 | | | | | | 9,434 | | | | | | 8,576 | | | | | | 6,968 | | |
|
2/24/2023
|
| | | | 35,792 | | | | | | 4,718 | | | | | | 7,372 | | | | | | 4,970 | | |
|
3/4/2023
|
| | | | 49,576 | | | | | | 6,345 | | | | | | 14,930 | | | | | | 5,470 | | |
|
12/9/2023
|
| | | | 26,396 | | | | | | — | | | | | | — | | | | | | — | | |
|
2/23/2024
|
| | | | 38,861 | | | | | | 9,434 | | | | | | 8,576 | | | | | | 6,968 | | |
|
2/24/2024
|
| | | | 35,792 | | | | | | 4,718 | | | | | | 7,372 | | | | | | 4,969 | | |
|
2/23/2025
|
| | | | 38,862 | | | | | | 9,434 | | | | | | 8,577 | | | | | | 6,968 | | |
| | | |
Stock Awards(1)
|
| |||||||||
|
Name
|
| |
Number of
Shares Acquired on Vesting (#) |
| |
Value
Realized on Vesting ($) |
| ||||||
| Kenneth A. Gunderman | | | | | 35,792(2) | | | | | $ | 400,870 | | |
| | | | | | 49,576(3) | | | | | $ | 674,729 | | |
| | | | | | 318,143(4) | | | | | $ | 4,406,281 | | |
| | | | | | 26,396(5) | | | | | $ | 156,792 | | |
| Paul Bullington | | | | | 4,718(2) | | | | | $ | 52,842 | | |
| | | | | | 6,344(3) | | | | | $ | 86,342 | | |
| | | | | | 5,734(4) | | | | | $ | 79,416 | | |
| Daniel L. Heard | | | | | 7,373(2) | | | | | $ | 82,578 | | |
| | | | | | 14,929(3) | | | | | $ | 203,184 | | |
| | | | | | 54,852(4) | | | | | $ | 759,700 | | |
| Michael Friloux | | | | | 4,970(2) | | | | | $ | 55,664 | | |
| | | | | | 5,470(3) | | | | | $ | 74,447 | | |
| | | | | | 20,687(4) | | | | | $ | 286,515 | | |
| | | |
Executive
Contributions in Last Fiscal Year ($)(1) |
| |
Uniti
Contributions in Last Fiscal Year ($) |
| |
Aggregate
Earnings in Last Fiscal Year ($)(2) |
| |
Aggregate
Withdrawals/ Distributions ($) |
| |
Aggregate
Balance at Last Fiscal Year-End ($) |
| |||||||||||||||
| Kenneth A. Gunderman | | | | $ | 72,500 | | | | | | — | | | | | $ | 19,191 | | | | | | — | | | | | $ | 563,020 | | |
| Paul Bullington | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Daniel L. Heard | | | | | — | | | | | | — | | | | | $ | 1,358 | | | | | | — | | | | | $ | 51,509 | | |
| Michael Friloux | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Name
|
| |
Type of Payment
|
| |
Voluntary
Termination without Good Reason or Termination for Cause ($) |
| |
Company
Approved Retirement ($) |
| |
Termination
without Cause or Resignation for Good Reason other than following a Change in Control ($) |
| |
Change in
Control with no Termination ($) |
| |
Termination
without Cause or Resignation for Good Reason following a Change in Control ($) |
| |
Death or
Disability ($) |
| ||||||||||||||||||
|
Kenneth A. Gunderman
|
| |
Severance
|
| | | | — | | | | | | — | | | | | $ | 4,680,177 | | | | | | — | | | | | $ | 5,767,677 | | | | | $ | 725,000 | | |
|
Restricted Stock (1)
|
| | | | — | | | | | $ | 785,593 | | | | | $ | 1,460,694 | | | | | | — | | | | | $ | 1,460,694 | | | | | $ | 1,460,694 | | | |||
| PBRSUs (1) (2) | | | | | — | | | | | $ | 837,854 | | | | | $ | 837,854 | | | | | | — | | | | | $ | 1,263,738 | | | | | $ | 837,854 | | | |||
| Healthcare | | | | | — | | | | | | — | | | | | $ | 33,452 | | | | | | — | | | | | $ | 33,452 | | | | | | — | | | |||
|
Total
|
| | | | — | | | | | $ | 1,623,447 | | | | | $ | 7,012,177 | | | | | | — | | | | | $ | 8,525,561 | | | | | $ | 3,023,548 | | | |||
|
Paul Bullington
|
| |
Severance
|
| | | | — | | | | | | — | | | | | $ | 893,781 | | | | | | — | | | | | $ | 1,631,709 | | | | | $ | 440,000 | | |
|
Restricted Stock (1)
|
| | | | — | | | | | $ | 109,647 | | | | | $ | 243,779 | | | | | | — | | | | | $ | 243,779 | | | | | $ | 243,779 | | | |||
| PBRSUs (1) (2) | | | | | — | | | | | $ | 24,615 | | | | | $ | 24,615 | | | | | | — | | | | | $ | 86,746 | | | | | $ | 24,615 | | | |||
| Outplacement | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 25,000 | | | | | | — | | | |||
| Healthcare | | | | | — | | | | | | — | | | | | $ | 16,927 | | | | | | — | | | | | $ | 33,855 | | | | | | — | | | |||
|
Total
|
| | | | — | | | | | $ | 134,262 | | | | | $ | 1,179,103 | | | | | | — | | | | | $ | 2,021,088 | | | | | $ | 708,394 | | | |||
|
Daniel L. Heard
|
| |
Severance
|
| | | | — | | | | | | — | | | | | $ | 1,266,186 | | | | | | — | | | | | $ | 2,088,248 | | | | | $ | 400,000 | | |
|
Restricted Stock (1)
|
| | | | — | | | | | $ | 168,447 | | | | | $ | 306,379 | | | | | | — | | | | | $ | 306,379 | | | | | $ | 306,379 | | | |||
| PBRSUs (1) (2) | | | | | — | | | | | $ | 222,968 | | | | | $ | 222,968 | | | | | | — | | | | | $ | 317,445 | | | | | $ | 222,968 | | | |||
| Outplacement | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 25,000 | | | | | | — | | | |||
| Healthcare | | | | | — | | | | | | — | | | | | $ | 16,927 | | | | | | — | | | | | $ | 33,855 | | | | | | — | | | |||
|
Total
|
| | | | — | | | | | $ | 391,416 | | | | | $ | 1,812,460 | | | | | | — | | | | | $ | 2,770,926 | | | | | $ | 929,347 | | | |||
|
Michael Friloux
|
| |
Severance
|
| | | | — | | | | | | — | | | | | $ | 927,324 | | | | | | — | | | | | $ | 1,561,432 | | | | | $ | 325,000 | | |
|
Restricted Stock (1)
|
| | | | — | | | | | $ | 95,194 | | | | | $ | 200,816 | | | | | | — | | | | | $ | 200,816 | | | | | $ | 200,816 | | | |||
| PBRSUs (1)(2) | | | | | — | | | | | $ | 105,800 | | | | | $ | 105,800 | | | | | | — | | | | | $ | 174,399 | | | | | $ | 105,800 | | | |||
| Outplacement | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 25,000 | | | | | | — | | | |||
| Healthcare | | | | | — | | | | | | — | | | | | $ | 12,291 | | | | | | — | | | | | $ | 24,583 | | | | | | — | | | |||
|
Total
|
| | | | — | | | | | $ | 200,993 | | | | | $ | 1,246,232 | | | | | | — | | | | | $ | 1,986,231 | | | | | $ | 631,616 | | |
| Year (a) | | | Summary Compensation Table Total for CEO (b) | | | Compensation Actually Paid to CEO(1) (c) | | | Average Summary Compensation Table Total for Non-CEO NEOs (d) | | | Average Compensation Actually Paid to Non-CEO NEOs(1) (e) | | | Value of Initial Fixed $100 Investment Based On: | | | Net Income (Loss) (millions)(4) (h) | | | Adjusted EBITDA (millions)(5) (i) | | |||||||||||||||||||||||||||
| Total Shareholder Return(2) (f) | | | Peer Group Total Shareholder Return(3) (g) | | |||||||||||||||||||||||||||||||||||||||||||||
| 2022 | | | | $ | 5,011,198 | | | | | $ | (2,837,826) | | | | | $ | 1,503,743 | | | | | $ | 330,113 | | | | | $ | 81 | | | | | $ | 100 | | | | | $ | (8.1) | | | | | $ | 905.9 | | |
| 2021 | | | | $ | 5,018,444 | | | | | $ | 6,289,079 | | | | | $ | 2,396,584 | | | | | $ | 2,078,726 | | | | | $ | 193 | | | | | $ | 132 | | | | | $ | 124.7 | | | | | $ | 878.3 | | |
| 2020 | | | | $ | 6,787,463 | | | | | $ | 10,076,404 | | | | | $ | 2,825,391 | | | | | $ | 3,502,562 | | | | | $ | 153 | | | | | $ | 92 | | | | | $ | (718.8) | | | | | $ | 818.8 | | |
| Year | | | Reported Summary Compensation Table (SCT) Total(i) | | | Reported Value of Equity Awards(ii) | | | Equity Award Adjustments(iii) | | | Compensation Actually Paid | | ||||||||||||
| | | | A | | | B | | | C | | | A-B+C | | ||||||||||||
| Company’s CEO | | ||||||||||||||||||||||||
| 2022 | | | | $ | 5,011,198 | | | | | $ | 2,967,063 | | | | | $ | (4,881,960) | | | | | $ | (2,837,826) | | |
| 2021 | | | | $ | 5,018,444 | | | | | $ | 3,137,527 | | | | | $ | 4,408,162 | | | | | $ | 6,289,079 | | |
| 2020 | | | | $ | 6,787,463 | | | | | $ | 3,951,703 | | | | | $ | 7,240,644 | | | | | $ | 10,076,404 | | |
| Average of Non-CEO NEOs | | ||||||||||||||||||||||||
| 2022 | | | | $ | 1,503,743 | | | | | $ | 635,707 | | | | | $ | (537,923) | | | | | $ | 330,113 | | |
| 2021 | | | | $ | 2,396,584 | | | | | $ | 637,661 | | | | | $ | 319,803 | | | | | $ | 2,078,726 | | |
| 2020 | | | | $ | 2,825,391 | | | | | $ | 1,421,694 | | | | | $ | 2,098,865 | | | | | $ | 3,502,562 | | |
| Year | | | Plus Year End Fair Value of Outstanding Unvested Stock Awards Granted in the Year | | | Year over Year Change (Positive or Negative) in Fair Value at Year End of Outstanding and Unvested Stock Awards Granted in Prior Years | | | Year over Year Change (Positive or Negative) in Fair Value of Stock Awards Granted in Prior Years that Vested in the Year | | | Less Year End Fair Value of Awards Granted in Prior Years that Failed to Meet the Applicable Vesting Conditions in the Year | | | Plus Value of Dividends or other Earnings Paid on Stock Awards not Otherwise Reflected in Fair Value or Total Compensation | | | Total Equity Award Adjustments | | ||||||||||||||||||
| Company’s CEO | | ||||||||||||||||||||||||||||||||||||
| 2022 | | | | $ | 1,140,192 | | | | | $ | (6,309,301) | | | | | $ | (384,324) | | | | | | — | | | | | $ | 671,473 | | | | | $ | (4,881,960) | | |
| 2021 | | | | $ | 3,524,080 | | | | | $ | 587,799 | | | | | $ | (147,701) | | | | | | — | | | | | $ | 443,984 | | | | | $ | 4,408,162 | | |
| 2020 | | | | $ | 5,838,375 | | | | | $ | 1,787,268 | | | | | $ | (128,087) | | | | | $ | (423,390) | | | | | $ | 166,478 | | | | | $ | 7,240,644 | | |
| Average of Non-CEO NEOs | | ||||||||||||||||||||||||||||||||||||
| 2022 | | | | $ | 244,291 | | | | | $ | (827,187) | | | | | $ | (23,881) | | | | | | — | | | | | $ | 68,854 | | | | | $ | (537,923) | | |
| 2021 | | | | $ | 308,059 | | | | | $ | 90,646 | | | | | $ | (190,831) | | | | | | — | | | | | $ | 111,929 | | | | | $ | 319,803 | | |
| 2020 | | | | $ | 1,766,283 | | | | | $ | 412,912 | | | | | $ | (29,593) | | | | | $ | (97,814) | | | | | $ | 47,077 | | | | | $ | 2,098,865 | | |
| |
BOARD RECOMMENDATION
|
| |
| |
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE “FOR” PROPOSAL NO. 3.
|
| |
| |
PROXIES SOLICITED BY THE BOARD OF DIRECTORS WILL BE VOTED “FOR” PROPOSAL NO. 3 UNLESS STOCKHOLDERS SPECIFY A CONTRARY VOTE.
|
| |
| | | |
2022
|
| |
2021
|
| ||||||
| Audit Fees (a) | | | | $ | 2,768,438 | | | | | $ | 2,958,599 | | |
| Audit-Related Fees (b) | | | | | 200,000 | | | | | | — | | |
| Tax Fees | | | | | — | | | | | | — | | |
| All Other Fees | | | | | — | | | | | | — | | |
| Total | | | | $ | 2,968,438 | | | | | $ | 2,958,599 | | |
| |
BOARD RECOMMENDATION
|
| |
| |
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE “FOR” PROPOSAL NO. 4.
|
| |
| |
PROXIES SOLICITED BY THE BOARD OF DIRECTORS WILL BE VOTED “FOR” PROPOSAL NO. 4 UNLESS STOCKHOLDERS SPECIFY A CONTRARY VOTE.
|
| |
(Thousands)
|
| |
Year Ended
December 31, 2022 |
| |||
Net loss attributable to common shareholders
|
| | | $ | (9,430) | | |
Real estate depreciation and amortization
|
| | | | 211,892 | | |
Gain on sale of real estate, net of tax
|
| | | | (433) | | |
Participating securities share in earnings
|
| | | | 1,135 | | |
Participating securities share in FFO
|
| | | | (2,345) | | |
Real estate depreciation and amortization from unconsolidated entities
|
| | | | 2,366 | | |
Adjustments for noncontrolling interests
|
| | | | (260) | | |
FFO attributable to common shareholders
|
| | |
$
|
202,925
|
| |
Transaction related costs | | | | | 10,340 | | |
Amortization of deferred financing costs and debt discount | | | | | 18,147 | | |
Gain on extinguishment of debt | | | | | (10,754) | | |
Stock based compensation | | | | | 12,751 | | |
Gain on sale of unconsolidated entity, net of tax | | | | | (1,212) | | |
Gain on sale of operations | | | | | (176) | | |
Non-real estate depreciation and amortization | | | | | 80,896 | | |
Goodwill impairment | | | | | 240,500 | | |
Straight-line revenues and amortization of below-market intangibles | | | | | (40,925) | | |
Maintenance capital expenditures | | | | | (10,000) | | |
Other, net | | | | | (48,435) | | |
Adjustments for equity in earnings from unconsolidated entities | | | | | 1,207 | | |
Adjustments for noncontrolling interests | | | | | (146) | | |
AFFO attributable to common shareholders
|
| | |
$
|
455,118
|
| |