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¨
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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Element Solutions Inc
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(Name of Registrant as Specified In Its Charter)
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N/A
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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ý
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No fee required.
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¨
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Fee paid previously with preliminary materials.
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¨
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Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
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500 East Broward Boulevard, Suite 127
Fort Lauderdale, Florida 33394
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Sincerely,
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Benjamin Gliklich
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Chief Executive Officer
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500 East Broward Boulevard, Suite 127 Fort Lauderdale, Florida 33394
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NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
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Date and Time
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June 5, 2019 at 11:00 a.m. (Eastern Time)
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Place
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Hilton Bentley Miami/South Beach, 101 Ocean Drive, Miami Beach, Florida 33139
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Items to be Voted on
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Elect
nine directors named in this proxy statement (the "Proxy Statement") for the coming year
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Approve
, by non-binding vote, named executive officer compensation ("say-on-pay" vote)
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Ratify
PricewaterhouseCoopers LLP as our independent registered public accounting firm for 2019
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Any other business
that properly comes before the 2019 Annual Meeting of Stockholders (the "2019 Annual Meeting")
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The above matters are fully described in this Proxy Statement. We have not received notice of any other matters that may be properly presented at the 2019 Annual Meeting.
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Record Date
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Only stockholders of record as of the close of business on April 10, 2019 may vote at the 2019 Annual Meeting.
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By Order of the Board of Directors,
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John E. Capps
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Executive Vice President - General Counsel & Secretary
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CAUTION REGARDING FORWARD-LOOKING STATEMENTS
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TABLE OF CONTENTS
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RECENT DEVELOPMENTS
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INFORMATION ABOUT THE MEETING AND VOTING
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PROPOSAL 1 - ELECTION OF DIRECTORS
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Board of Directors Nominees
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Board Membership and Selection
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Candidates Nominated by Stockholders
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CORPORATE GOVERNANCE
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Corporate Governance Highlights
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Corporate Governance Guidelines
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Role of the Board of Directors
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Board Meetings
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Board Leadership Structure
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Director Independence
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Board Committees
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Audit Committee
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Compensation Committee
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Compensation Committee Interlocks and Insider Participation
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Nominating and Policies Committee
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Board and Committee Assessment Process
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Risk Management Oversight
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Certain Relationships and Related Transactions
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Related Party Transaction Policy
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Transactions with Related Parties
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Involvement in Certain Legal Proceedings
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DIRECTOR COMPENSATION
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Director Compensation Program
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2018 Directors' Compensation
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Indemnification
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EXECUTIVE OFFICERS OF THE COMPANY
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EXECUTIVE COMPENSATION
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COMPENSATION DISCUSSION AND ANALYSIS (see detailed table of contents on page
27
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Report of the Compensation Committee
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EXECUTIVE COMPENSATION TABLES
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2018 Summary Compensation Table
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Pay Ratio
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Grants of Plan-Based Awards in 2018
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Outstanding Equity Awards at Year End
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Option Exercises and Stock Vested in 2018
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Potential Payments upon Termination or Change in Control
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Post-Employment Payments
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2018 Pension Benefits
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2018 Nonqualified Deferred Compensation
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Equity Compensation Plan Information
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SECURITY OWNERSHIP
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Directors and Executive Officers
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Principal Beneficial Owners
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PROPOSAL 2 - ADVISORY VOTE ON NAMED EXECUTIVE OFFICER COMPENSATION
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PROPOSAL 3 - RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR 2019
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Report of the Audit Committee
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Principal Accountant Fees and Services
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Pre-Approval Policies and Procedures for Audit and Permissible Non-Audit Services
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OTHER MATTERS
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Proposals by Stockholders
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List of Stockholders Entitled to Vote at the 2019 Annual Meeting
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Expenses Relating to this Proxy Solicitation
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Communication with the Board of Directors
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2018 Annual Report, Form 10-K and Available Information
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APPENDIX A - NON-GAAP DEFINITIONS AND RECONCILIATIONS
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PROXY CARD
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500 East Broward Boulevard, Suite 127
Fort Lauderdale, Florida 33394
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PROXY STATEMENT
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A:
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We have made these materials available to you on the Internet or, upon your request, have delivered printed versions of these materials to you by mail, in connection with the solicitation by the Board of Directors of proxies to be voted at the
2019
Annual Meeting, or at any adjournments or postponements thereof. You are receiving these materials because you were an Element Solutions stockholder as of the close of business on
April 10, 2019
, the Record Date. These materials provide notice of the
2019
Annual Meeting, describe the proposals presented for stockholder action and include information required to be disclosed to stockholders.
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A
:
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The proxy materials include:
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A:
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The Notice of Internet Availability provides you with instructions regarding how to use the Internet to view our proxy materials for the
2019
Annual Meeting. This Proxy Statement and our
2018
Annual Report are available on the website
www.proxyvote.com
.
If you hold your shares in "street name," you may be able to elect to receive future proxy statements and annual reports electronically. For information regarding electronic delivery you should contact your broker, bank or other nominee. Stockholders requesting electronic delivery may incur costs, such as telephone and Internet access charges, that must be borne by the stockholder.
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A:
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We are required to have a quorum of stockholders present for all items of business to be voted at the
2019
Annual Meeting. The presence at the meeting, in person or by proxy, of the holders of a majority in voting power of the Company's shares of common stock outstanding and entitled to vote on the Record Date will constitute a quorum, permitting us to conduct the
2019
Annual Meeting. Proxies received but marked as abstentions, if any, and broker non-votes (described below) will be included in the calculation of the number of shares considered to be present at the
2019
Annual Meeting for quorum purposes. If we do not have a quorum, then the person presiding over the
2019
Annual Meeting or the
stockholders present
at the
2019
Annual Meeting may, by a majority of voting power thereof, adjourn the meeting, as authorized by the Company's amended and restated by-laws (the "Amended and Restated By-Laws"), until a quorum is present.
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A:
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You may vote all of the shares of common stock that you owned as of the Record Date, which is the close of business on
April 10, 2019
. You may cast one vote for each share of common stock held by you on the Record Date on all items of business presented at the
2019
Annual Meeting. These shares include shares that are:
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•
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held directly in your name as the stockholder of record; and
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•
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held for you as the beneficial owner through a broker, bank or other nominee.
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A:
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Stockholder of Record
: If your shares of common stock are registered directly in your name with the Company's transfer agent, Computershare, you are considered, with respect to those shares, the "stockholder of record," and the Notice of Internet Availability was sent directly to you. As the stockholder of record, you have the right to grant your voting proxy directly to certain officers of Element Solutions or to vote in person at the
2019
Annual Meeting.
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•
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In person
.
You may vote in person at the
2019
Annual Meeting by requesting a ballot when you arrive. You must bring valid picture identification, such as a driver’s license or passport, and may be requested to provide proof of stock ownership as of the Record Date.
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•
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Via the Internet
. You may vote by proxy via the Internet by visiting
ww
w.proxyvote.com
and entering the control number found in your Notice of Internet Availability. Instructions on Internet voting are provided in the Notice of Internet Availability.
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•
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By Telephone
. If you request printed copies of the proxy materials by mail, you will receive a proxy card and you may vote by proxy by calling the toll free number found on the proxy card.
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By Mail
. If you request printed copies of the proxy materials by mail, you will receive a proxy card and you may vote by proxy by filling out the proxy card and returning it in the envelope provided.
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•
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In person
. You must obtain a "legal proxy" from the organization that holds your shares. A legal proxy is a written document that will authorize you to vote your shares held in "street name" at the
2019
Annual Meeting. Please contact your nominee for instructions regarding how to obtain a legal proxy.
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•
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Via the Internet
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You may vote by proxy via the Internet by visiting
www.proxyvote.com
and entering the control number found in your Notice of Internet Availability. Instructions on Internet voting are provided in the Notice of Internet Availability. The availability of Internet voting may depend on the voting process of the organization that holds your shares.
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•
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By Telephone
. If you request printed copies of the proxy materials by mail, you may vote by proxy by calling the toll free number found on the proxy card. The availability of telephone voting may depend on the voting process of the organization that holds your shares.
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•
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By Mail
. If you request printed copies of the proxy materials by mail, you will receive a proxy card or a voting instruction form and you may vote by proxy by filling out the proxy card or voting instruction form and returning it in the envelope provided.
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Q:
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What if I lose the Notice of Internet Availability or other communication from my broker, bank or other nominee containing my control number prior to voting?
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A:
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If you are a stockholder of record, you may obtain another Notice of Internet Availability containing your control number by writing to the Secretary of Element Solutions at Element Solutions Inc, 500 East Broward Boulevard, Suite 127, Fort Lauderdale, Florida 33394, or calling our Investor Relations at (501) 406-8465. If your shares of common stock are held in "street name" for you through a broker, bank or other nominee, you must contact that nominee and request to obtain another notice from them.
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A:
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There are three proposals scheduled to be voted on at the
2019
Annual Meeting:
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Proposal 1
- Election of nine directors specifically named in this Proxy Statement, each of them for a term of one year until the
2020
annual meeting of stockholders or until their successors are elected and qualified;
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•
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Proposal 2
- Approval, on an advisory basis, of the compensation paid by Element Solutions to its Named Executive Officers (as defined in "COMPENSATION DISCUSSION AND ANALYSIS"), as such information is disclosed in the Compensation Discussion and Analysis section, the executive compensation tables and the accompanying narrative disclosure beginning on page
27
of this Proxy Statement ("say-on-pay vote"); and
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Proposal 3
- Ratification of the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm of Element Solutions for
2019
.
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•
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Proposal 1
- "
FOR
" each of the director nominees named in this Proxy Statement for election to the Board;
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•
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Proposal 2
- "
FOR
"
the approval, on an advisory basis, of the compensation of our Named Executive Officers; and
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•
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Proposal 3
-
"FOR"
the ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for
2019
.
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A:
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Our Amended and Restated By-Laws provide that items of business may be brought before the
2019
Annual Meeting only (i) pursuant to the Notice of Annual Meeting of Stockholders (or any supplement thereto) included in this Proxy Statement, (ii) by or at the direction of the Board of Directors, or (iii) by a stockholder of Element Solutions who was a stockholder of Element Solutions at the time proper notice of such business is delivered to the Secretary of Element Solutions in accordance with the procedures set forth in our Amended and Restated By-Laws. Other than the three items of business described in this Proxy Statement, we are not aware of any other business to be acted upon at the
2019
Annual Meeting as of the date of this Proxy Statement. If you grant a proxy, the persons named as proxy holders will have the discretion to vote your shares on any additional
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A:
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Yes. Element Solutions encourages stockholder participation in corporate governance by ensuring the confidentiality of stockholder votes. Element Solutions has designated Broadridge Investor Communication Solutions, Inc. ("Broadridge") to receive and tabulate stockholder votes. Your vote on any particular proposal will be kept confidential and will not be disclosed to Element Solutions or any of its officers or employees, except where (i) disclosure is required by applicable law, (ii) disclosure of your vote is expressly requested by you, or (iii) Element Solutions concludes in good faith that a bona fide dispute exists as to the authenticity of one or more proxies, ballots or votes, or as to the accuracy of any tabulation of such proxies, ballots or votes. However, aggregate vote totals will be disclosed to Element Solutions from time to time and preliminary voting results will be publicly announced at the
2019
Annual Meeting.
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A:
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The table below sets forth the vote required for approval of each proposal described in this Proxy Statement, assuming a quorum is present:
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Vote Required
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Proposal 1 -
Election of directors
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Majority of votes cast
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Proposal 2 -
Say-on-Pay
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Majority of votes cast
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Proposal 3 -
Ratification of PricewaterhouseCoopers LLP as our independent registered public accounting firm for 2019
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Majority of votes cast
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Q:
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If I am an employee holding shares pursuant to the Company's Employee Stock Purchase Plan, how will my shares be voted?
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A:
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Employees holding shares of common stock of the Company acquired through our employee stock purchase plan will receive an email including voting instructions or a voting instruction card from Broadridge covering all shares credited to their share account at Charles Schwab under Schwab Stock Plan Services, the plan record keeper, as of the Record Date. The email or voting instruction cards may have an earlier return date than proxy cards.
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Q:
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How do I vote my shares held through the Company's Employee Savings and 401(K) Plan?
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A:
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Employees holding shares of common stock of the Company acquired through our 401(k) plan will be able to vote any shares included in their brokerage accounts as of the Record Date in accordance with the voting instructions that will be provided by the Schwab Stock Plan Services of Charles Schwab, the bank nominee where such brokerage accounts were opened.
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Q:
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What happens if I do not give specific voting instructions?
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A:
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Stockholder of Record
. If you are a stockholder of record and you submit a signed proxy card or submit your proxy by telephone or the Internet but do not specify how you want to vote your shares on a particular proposal, then the proxy holders will vote your shares in accordance with the recommendations of the Board of Directors on all matters presented in this Proxy Statement. With respect to any other matters properly presented for a vote at the
2019
Annual Meeting, the proxy holders will vote your shares in accordance with their best judgment.
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Q:
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Which proposals are considered "routine" or "non-routine"?
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A:
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The ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for
2019
(
Proposal 3
) is a matter considered "routine" under applicable rules. A broker or other nominee may generally vote on routine matters, which means that it can exercise discretion and vote your shares absent your instructions. Therefore no broker non-votes are expected to exist in connection with Proposal 3
.
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Q:
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What is the impact of broker non-votes and abstentions on the proposals being presented at the meeting?
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A:
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The table below sets forth the impact of a broker non-vote and an abstention with respect to each proposal described in this Proxy Statement, assuming a quorum is present:
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Broker Non-Vote
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Abstention
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Proposal 1 -
Election of directors
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No Impact
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No Impact
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Proposal 2 -
Say-on-Pay
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No Impact
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No Impact
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Proposal 3 -
Ratification of PricewaterhouseCoopers LLP as our independent registered public accounting firm for 2019
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N/A
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No Impact
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A:
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Yes. You may revoke your proxy card at any time before its exercise by (i) delivering to the Secretary of Element Solutions a revocation of proxy at the address indicated below, (ii) executing a new proxy bearing a later date, or (iii) voting in person at the
2019
Annual Meeting. If you are a beneficial owner, you must contact your broker, bank or other nominee to change your vote or obtain a proxy to vote your shares if you wish to cast your vote in person at the
2019
Annual Meeting.
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A:
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Only stockholders and our invited guests are invited to attend the
2019
Annual Meeting. To gain admittance, you must bring a form of personal identification to the
2019
Annual Meeting, where your name will be verified against our stockholder list. If a broker, bank or other nominee holds your shares and you plan to attend the
2019
Annual Meeting, you should bring a recent brokerage statement showing the ownership of your shares as of the Record Date, a letter from such broker, bank or nominee confirming such ownership and a form of personal identification.
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A:
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No. Delaware General Corporation Law does not provide for dissenter’s rights in connection with the matters being voted on at the
2019
Annual Meeting.
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Q:
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What should I do if I receive more than one set of voting materials?
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A:
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You may receive more than one set of voting materials, including multiple Notices of Internet Availability or voting instruction cards. For example, if you hold your shares in more than one brokerage account, you may receive a separate Notice of Internet Availability or voting instruction card for each brokerage account in which you hold shares in "street name." If you are a stockholder of record and your shares are registered in more than one name, you will receive more than one Notice of Internet Availability. Please vote the shares represented by each Notice of Internet Availability or voting instruction card you receive.
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A:
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For those stockholders that have elected to continue to receive printed copies of the proxy materials, the SEC permits delivery of a single annual report to shareholders and proxy statement to any household at which two or more shareholders reside, who are believed to be members of the same family. The procedure, referred to as "householding," reduces the volume of duplicate information stockholders receive and expense to the Company. We have not implemented householding with respect to our stockholders of record; however, a number of brokerage firms have instituted householding, which may impact certain beneficial owners (i.e., "street name" stockholders). If your family has multiple accounts by which a broker holds your shares of common stock in "street name," you may have previously received a householding information notification from your broker. Please contact your broker directly if you have any questions, require additional copies of this Proxy Statement or our
2018
Annual Report, or wish to revoke your decision to household, and thereby receive multiple reports.
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A:
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We will announce the preliminary voting results for the proposals voted upon at the
2019
Annual Meeting and publish final detailed voting results in a Current Report on Form 8-K filed with the SEC within four business days after the
2019
Annual Meeting.
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Q:
|
Who should I call with other questions?
|
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A:
|
If you need assistance voting your shares, please contact our Investor Relations at (561) 406-8465. If you have additional questions about this Proxy Statement or the
2019
Annual Meeting or would like to receive additional copies of this Proxy Statement and/or our
2018
Annual Report, please contact:
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|
Martin E. Franklin
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Martin E. Franklin, our founder and a director of the Company since April 2013, was appointed Executive Chairman of the Board in January 2019 after having served as Chairman of the Board since October 2013. Mr. Franklin is the Founder and CEO of Mariposa Capital LLC, a Miami-based family investment firm focused on long-term value creation across various industries, and Chairman and controlling shareholder of Royal Oak Enterprises, LLC. Mr. Franklin is also co-founder and co-Chairman of Nomad Foods Limited, a director of Restaurant Brands International Inc. ("Restaurant Brands") and a founder and director of J2 Acquisition Limited, and serves as principal and executive officer of a number of private investment entities and charities. Mr. Franklin was the founder and Chairman of Jarden Corporation ("Jarden"), from 2001 until April 2016, when Jarden merged with Newell Brands Inc. ("Newell"). Mr. Franklin was appointed to Jarden's board of directors in June 2001 and served as Jarden's Chairman and Chief Executive Officer from September 2001 until June 2011, at which time he was appointed as Executive Chairman. Prior to founding Jarden in 2001, Mr. Franklin served as the Chairman and/or Chief Executive Officer of three public companies: Benson Eyecare Corporation, Lumen Technologies, Inc., and Bollé Inc. between 1992 and 2000. In the last five years, Mr. Franklin served as a director of the following public companies: Newell Brands, Inc., and Burger King Worldwide, Inc. (until its transaction with Tim Hortons, Inc. and the creation of Restaurant Brands in December 2014). Mr. Franklin graduated from the University of Pennsylvania.
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Qualifications
:
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CEO experience
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M&A experience
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International experience
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Public company director experience
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|
|
Committee Memberships
:
|
|
|
|
None
|
|
|
|
Other Public Company Boards
:
|
|
|
|
J2 Acquisition Limited
|
|
|
|
Nomad Foods Limited
|
|
|
|
Restaurant Brands International Inc.
|
|
|
|
Age
: 54
|
|
|
|
Director since
: 2013
|
|
|
|
Executive Chairman of the Board
|
|
|
Benjamin Gliklich
|
|
|
|
|
|
|
|
Benjamin Gliklich was appointed as Chief Executive Officer of the Company and a member of the Board in January 2019 after having served as Executive Vice President - Operations and Strategy of the Company since April 2016. Prior to this appointment, Mr. Gliklich served as the Company's Chief Operating Officer from October 2015 to April 2016 and as Vice President of the Company responsible for multiple different functions from January to October 2015. Mr. Gliklich joined Element Solutions as Director of Corporate Development in May 2014. Prior to joining Element Solutions, Mr. Gliklich worked for General Atlantic, a global growth-oriented private equity firm, and Goldman Sachs & Co. Mr. Gliklich holds an A.B. Cum Laude from Princeton University and an MBA with distinction from Columbia Business School.
|
|
Qualifications:
|
|
|
M&A experience
|
|
|
|
Management experience
|
|
|
|
Operations experience
|
|
|
|
Committee Memberships
:
|
|
|
|
None
|
|
|
|
Other Public Company Boards
:
|
|
|
|
None
|
|
|
|
Age
: 34
|
|
|
|
Director since
: 2019
|
|
|
|
CEO of the Company
|
|
|
Scot R. Benson
|
|
|
|
|
|
|
|
Scot R. Benson has served as a director of the Company since April 2019. Currently, Mr. Benson is President and Chief Operating Officer of Element Solutions. Prior to being promoted to this role in January 2019, Mr. Benson served as President of the former Performance Solutions segment of Element Solutions from 2015 to January 2019 where he led the integration of the former Alent plc businesses and the former OM Group, Inc.’s Electronic Chemicals and Photomasks businesses with MacDermid, Incorporated ("MacDermid"). Mr. Benson joined MacDermid in 1999 which was acquired by the Company in October 2013. His previous positions at MacDermid included President of MacDermid Advanced Surface Finishes and Graphics Solutions from January 2013 until February 2015. Mr. Benson also served as President of MacDermid Graphics Solutions from 2010 to 2013. Mr. Benson attended the University of Wisconsin - Stevens Point.
|
|
Qualifications
:
|
|
|
President experience
|
|
|
|
Management experience
|
|
|
|
Operations experience
|
|
|
|
M&A experience
|
|
|
|
Committee Memberships
:
|
|
|
|
None
|
|
|
|
Other Public Company Boards
:
|
|
|
|
None
|
|
|
|
Age
: 57
|
|
|
|
Director since
: 2019
|
|
|
|
COO of the Company
|
|
|
Ian G.H. Ashken
|
|
|
|
|
|
|
|
Ian G.H. Ashken has served as a director of the Company since October 2013. Currently, Mr. Ashken is also serving on the board of Nomad Foods Limited, and is a director or trustee of a number of private companies and charitable institutions. Mr. Ashken was the co-founder and Vice Chairman of Jarden from 2001 until April 2016, and President of Jarden from June 2014 until April 2016, when Jarden merged with Newell. Mr. Ashken was also a member of the Jarden board from 2001 until April 2016 and served as Jarden's Chief Financial Officer until June 2014. Prior to Jarden, Mr. Ashken served as the Vice Chairman and/or Chief Financial Officer of three public companies: Benson Eyecare Corporation, Lumen Technologies, Inc., and Bollé Inc. between 1992 and 2000. During the last five years, Mr. Ashken also served as a director of Newell.
|
|
Qualifications
:
|
|
|
President experience
|
|
|
|
CFO experience
|
|
|
|
Financial expert
|
|
|
|
M&A experience
|
|
|
|
Public company director experience
|
|
|
|
Committee Memberships
:
|
|
|
|
Audit
|
|
|
|
Compensation
|
|
|
|
Nominating and Policies (Chairman)
|
|
|
|
Other Public Company Boards
:
|
|
|
|
Nomad Foods Limited
|
|
|
|
Age
: 58
|
|
|
|
Director since
: 2013
|
|
|
|
Independent
|
|
|
Christopher T. Fraser
|
|
|
|
|
|
|
|
Christopher T. Fraser has served as a director of the Company since April 2019. Mr. Fraser served as Chairman of the Board of KMG Chemicals Inc. ("KMG") from December 2012 to November 2018 and was a director of KMG from May 2008 to November 2018. He also served as Chief Executive Officer and President of KMG from September 2013 to November 2018 after serving as President and Chief Executive Officer of KMG on an interim basis from July 2013 to September 2013. From 2006 to 2009, Mr. Fraser was the President and Chief Executive Officer of Chemical Lime Company, a North American producer of calcium based (limestone), alkaline products with various industrial applications. Before joining Chemical Lime Company, Mr. Fraser was President and Chief Executive Officer of OCI Chemical Corporation, a wholly-owned subsidiary of DC Chemical Co. ("OCI") from 1996 to 2006. Prior to joining OCI, Mr. Fraser held various positions of responsibility in sales, marketing, business development, operations and general management. Mr. Fraser has been a director of Panhandle Oil and Gas Inc. (NYSE:PHX) since March 2019, and is a member of its Audit and Compensation committees. He has also previously served as a director at OCI Company Ltd. from 2006 to 2008, ANSAC from 1994 to 2006 and Tangoe Inc. from 2002 to 2008, and has been an Operating Partner of Advent International Corp. since 2011 which he advises on transactions in the industrial sector. Mr. Fraser holds a Bachelor of Science in Chemistry and in Business Administration from the University of Connecticut, as well as a Master of Business Administration from Pepperdine University.
|
|
Qualifications
:
|
|
|
CEO experience
|
|
|
|
Management experience
|
|
|
|
Industry experience
|
|
|
|
M&A experience
|
|
|
|
Public company director experience
|
|
|
|
Committee Memberships
:
|
|
|
|
None
|
|
|
|
Other Public Company Boards
:
|
|
|
|
Panhandle Oil and Gas Inc.
|
|
|
|
Age
: 61
|
|
|
|
Director since
: 2019
|
|
|
|
Independent
|
|
|
Michael F. Goss
|
|
|
|
|
|
|
|
Michael F. Goss has served as a director of the Company since October 2013. Mr. Goss is currently Executive Vice President and Chief Financial Officer of Sotheby's, Inc. Prior to joining Sotheby's in March 2016, Mr. Goss served at Bain Capital, LLC ("Bain Capital") until December 2013 following 13 years with the firm in various senior managerial capacities. Mr. Goss joined Bain Capital in 2001 as Managing Director and Chief Financial Officer and in 2004, assumed the additional role of Chief Operating Officer. Prior to joining Bain Capital, Mr. Goss was Executive Vice President and Chief Financial Officer of Digitas Inc., a global Internet professional services firm, which he helped take public in March 2000. Prior to joining Digitas Inc., Mr. Goss was Executive Vice President and Chief Financial Officer, and a member of the board of directors of Playtex Products, Inc. Mr. Goss graduated from Kansas State University with a BS in economics and received an MBA with Distinction from Harvard Business School.
|
|
Qualifications
:
|
|
|
CFO experience
|
|
|
|
Financial expert
|
|
|
|
M&A experience
|
|
|
|
Operations experience
|
|
|
|
Public company director experience
|
|
|
|
Committee Memberships
:
|
|
|
|
Audit (Chairman)
|
|
|
|
Nominating and Policies
|
|
|
|
Other Public Company Boards
:
|
|
|
|
None
|
|
|
|
Age
: 59
|
|
|
|
Director since
: 2013
|
|
|
|
Independent
|
|
|
Nichelle Maynard-Elliott
|
|
|
|
|
|
|
|
Nichelle Maynard-Elliott has served as a director of the Company since August 2018. Ms. Maynard-Elliott currently serves as Executive Director, Mergers & Acquisitions for Praxair, Inc., a member of the Linde group ("Praxair"). Ms. Maynard-Elliott joined Praxair in 2003 as Senior Counsel responsible for M&A and commercial transactions for Praxair’s U.S. packaged gases and healthcare businesses. Ms. Maynard-Elliott served as Assistant General Counsel from 2007 to 2011 and transitioned to the role of Executive Director, M&A in 2011. She is admitted to practice in New York and Connecticut. Ms. Maynard-Elliott graduated from Brown University with a B.A. in Economics, and received her J.D. from Columbia University School of Law.
|
|
Qualifications
:
|
|
|
M&A experience
|
|
|
|
Management experience
|
|
|
|
Operations experience
|
|
|
|
Committee Memberships
:
|
|
|
|
Audit
|
|
|
|
Compensation
|
|
|
|
Other Public Company Boards
:
|
|
|
|
None
|
|
|
|
Age
: 50
|
|
|
|
Director since
: 2018
|
|
|
|
Independent
|
|
|
E. Stanley O' Neal
|
|
|
|
|
|
|
|
E. Stanley O’Neal has served as a director of the Company since October 2013. Mr. O’Neal served as Chairman of the Board and Chief Executive Officer of Merrill Lynch & Co., Inc. ("Merrill Lynch") until October 2007. He became Chief Executive Officer of Merrill Lynch in 2002 and was elected Chairman of the Board in 2003. Mr. O’Neal was employed with Merrill Lynch for 21 years, serving as President and Chief Operating Officer from July 2001 to December 2002; President of U.S. Private Client from February 2000 to July 2001; Chief Financial Officer from 1998 to 2000 and Executive Vice President and Co-head of Global Markets and Investment Banking from 1997 to 1998. Currently, Mr. O’Neal is a board member of Clearway Energy, Inc. and a member of the Audit and Finance committees of Arconic Inc., an aluminum manufacturing company and the former parent company of Alcoa Inc. Prior to the separation of these two entities in November 2016, Mr. O'Neal had served as a director of Alcoa Inc. since January 2008 and as a member of its Audit and Governance committees. Mr. O’Neal was also a director of General Motors Corporation from 2001 to 2006, and a director of American Beacon Advisors, Inc. (investment advisor registered with the SEC) from 2009 to September 2012. Mr. O’Neal graduated from Kettering University with a degree in industrial administration and received his MBA from Harvard Business School.
|
|
Qualifications
:
|
|
|
CEO experience
|
|
|
|
CFO experience
|
|
|
|
M&A experience
|
|
|
|
Operations experience
|
|
|
|
Public company director experience
|
|
|
|
Committee Memberships
:
|
|
|
|
Compensation (Chairman)
|
|
|
|
Nominating and Policies
|
|
|
|
Other Public Company Boards
:
|
|
|
|
Arconic Inc.
|
|
|
|
Clearway Energy, Inc.
|
|
|
|
Age
: 67
|
|
|
|
Director since
: 2013
|
|
|
|
Independent
|
|
|
Rakesh Sachdev
|
|
|
|
|
|
|
|
Rakesh Sachdev has served as a director of the Company since January 2016 and served as Chief Executive Officer of the Company from January 2016 through January 2019. Prior to joining the Company, Mr. Sachdev served as President and Chief Executive Officer of Sigma-Aldrich Corporation ("Sigma-Aldrich") from 2010 to 2015 where he also served as a member of the board. Mr. Sachdev joined Sigma-Aldrich in 2008 as Chief Financial Officer and took on the additional role of Chief Administrative Officer with direct oversight of Sigma-Aldrich’s international business in 2009. He was Senior Vice President and President Asia Pacific of ArvinMeritor, Inc. ("ArvinMeritor"), a global supplier of engineered systems to the automotive industry, from 2007 to 2008. At ArvinMeritor, Mr. Sachdev also served in other leadership roles, including Interim Chief Financial Officer, Senior Vice President Strategy and Corporate Development and Vice President and General Manager of several of ArvinMeritor’s global businesses from 1999 to 2007. Prior to joining ArvinMeritor, Mr. Sachdev worked for Cummins Inc., a global manufacturer of engines and other industrial products in various leadership roles, including Chief Financial Officer for one of its largest business units, and as Managing Director of its Mexican operations. Mr. Sachdev is also a director of Regal-Beloit Corporation and Edgewell Personal Care Company, and serves on the Board of Trustees of Washington University in St. Louis. Mr. Sachdev holds a M.B.A. from Indiana University, a Masters in Mechanical Engineering from the University of Illinois and a Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology in New Delhi.
|
|
Qualifications:
|
|
|
Industry experience
|
|
|
|
CEO experience
|
|
|
|
CFO experience
|
|
|
|
M&A experience
|
|
|
|
Public company director experience
|
|
|
|
Committee Memberships
:
|
|
|
|
None
|
|
|
|
Other Public Company Boards
:
|
|
|
|
Edgewell Personal Care Company
|
|
|
|
Regal-Beloit Corporation
|
|
|
|
Age
: 63
|
|
|
|
Director since
: 2016
|
|
|
|
Former CEO of the Company
|
|
|
Board Composition
|
l
|
Currently, the Board has fixed the number of directors at nine
|
|
|
l
|
The Board annually assesses its performance through Board and Committee self evaluations
|
|
|
l
|
The Nominating and Policies Committee leads the Board in considering Board competencies
|
|
|
|
|
|
Board Committees
|
l
|
We have three Board committees: Audit; Compensation; and Nominating and Policies
|
|
|
l
|
All Board committees are composed entirely of independent directors
|
|
Leadership Structure
|
l
|
We separate the positions of CEO and Executive Chairman of the Board
|
|
|
l
|
The Company's Executive Chairman acts as lead director. Among other duties, our lead director chairs executive sessions of the independent directors to discuss certain matters without management present
|
|
|
|
|
|
Risk Oversight
|
l
|
The Board is responsible for risk oversight and oversees management as management fulfills its responsibilities for the assessment and mitigation of risks and for taking appropriate risks
|
|
|
l
|
The Board committees and members of management also have responsibilities with respect to risk oversight
|
|
|
|
|
|
Open Communication
|
l
|
We encourage open communication and strong working relationships among our Executive Chairman, our CEO and the other directors
|
|
|
l
|
Our directors have access to management and employees
|
|
|
|
|
|
Accountability to Stockholders
|
l
|
We use majority voting in uncontested director elections
|
|
l
|
We have a fully non-classified Board with annual election of directors
|
|
|
l
|
Stockholders can contact our Board, lead director or management through our website or by regular mail
|
|
|
•
|
director independence;
|
|
•
|
director qualifications and responsibilities;
|
|
•
|
mandatory retirement age for independent directors at 70;
|
|
•
|
Board structure and meetings;
|
|
•
|
management succession; and
|
|
•
|
the performance evaluation of the Board and the Company's CEO.
|
|
Independent Directors
|
||
|
Ian G.H. Ashken
|
|
Nichelle Maynard-Elliott
|
|
Christopher T. Fraser
|
|
E. Stanley O'Neal
|
|
Michael F. Goss
|
|
|
|
Name
|
|
Audit Committee
|
|
Compensation Committee
|
|
Nominating and
Policies Committee |
|
|
|
|
|
|
|
|
|
|
|
Ian G.H. Ashken
|
|
l
|
|
l
|
|
|
|
|
Michael F. Goss
|
|
|
|
|
|
l
|
|
|
Nichelle Maynard-Elliott
|
|
l
|
|
l
|
|
|
|
|
E. Stanley O’Neal
|
|
|
|
|
|
l
|
|
|
|
|
||||||
|
|
Committee Chairman
|
||||||
|
l
|
Committee Member
|
||||||
|
•
|
overseeing our accounting and the financial reporting processes;
|
|
•
|
appointing and overseeing the audit of our independent registered public accounting firm (including resolution of disagreements between management and our independent auditor);
|
|
•
|
pre-approving all auditing services and permitted non-auditing services to be performed for us by our independent auditor and approving the fees associated with such services;
|
|
•
|
reviewing interim and year-end financial statements with management and our independent auditors;
|
|
•
|
overseeing our internal audit function, reviewing any significant reports to management arising from such internal audit function and reporting to the Board of Directors;
|
|
•
|
reviewing complaints under and compliance with the Company’s corporate governance guidelines, in particular regarding questionable accounting, internal accounting controls or auditing matters;
|
|
•
|
overseeing the Company's policies and procedures with respect to risk assessment and risk management; and
|
|
•
|
reviewing and approving all related-party transactions required to be disclosed under Item 404 of Regulation S-K under the Securities Act of 1933, as amended (the "Securities Act").
|
|
•
|
meets the independence requirements of the NYSE corporate governance listing standards;
|
|
•
|
meets the enhanced independence standards for audit committee members required by the SEC; and
|
|
•
|
is financially literate, knowledgeable and qualified to review financial statements.
|
|
•
|
assisting the Board in developing and evaluating potential candidates for executive positions and overseeing the development of any executive succession plans;
|
|
•
|
reviewing and making recommendations to the Board with respect to CEO compensation and CEO corporate goals and objectives;
|
|
•
|
making recommendations to the Board with respect to compensation of other executive officers and providing oversight of management’s decisions concerning the performance and compensation of such executive officers;
|
|
•
|
reviewing on a periodic basis compensation and benefits paid to directors;
|
|
•
|
reviewing our incentive compensation and other stock-based plans and recommending changes in such plans to our Board as needed to assure the effective representation of the Company's stockholders; and
|
|
•
|
preparing a Compensation Committee report on executive compensation required by the SEC to be included the Company's annual proxy statements.
|
|
•
|
meets the independence requirements of the NYSE corporate governance listing standards;
|
|
•
|
meets the enhanced independence standards for compensation committee members required by the NYSE and the SEC; and
|
|
•
|
to the extent applicable, is an "outside director" pursuant to the criteria established by the Internal Revenue Service ("IRS").
|
|
•
|
leading the search for individuals qualified to become members of the Board of Directors and selecting director nominees to be presented for stockholder approval at our annual meetings;
|
|
•
|
reviewing the Committees structure and recommending to the Board of Directors for approval directors to serve as members of each Committee;
|
|
•
|
reviewing corporate governance guidelines on a periodic basis and recommending changes to the Board as necessary;
|
|
•
|
overseeing any self-evaluations of the Board and its Committees;
|
|
•
|
reviewing director nominations submitted by stockholders, if any; and
|
|
•
|
assuring the effective representation of the Company's stockholders.
|
|
Compensation Components
|
|
Amounts ($)
|
|
Board Fees
|
|
75,000
|
|
Committee Fees
|
|
5,000 additional fees
|
|
Audit Committee Chairman Compensation
|
|
10,000 additional fees
|
|
Compensation Committee Chairman Compensation
|
|
10,000 additional fees
|
|
Nominating and Policies Committee Chairman Compensation
|
|
10,000 additional fees
|
|
RSU Grant
|
|
RSUs with an approximate value of $100,000
(1)
|
|
(1)
|
Certain non-executive directors are granted annually a number of RSUs with an approximate value equal to $100,000 at the grant date
.
These RSUs are typically granted on the date of the Company's annual meeting of stockholders and vest on the earlier of the one-year anniversary of the grant date and the date of the next annual meeting of stockholders.
|
|
2018 Directors Compensation
(1)
|
||||
|
Name
|
Fees Earned or Paid in Cash
($)
(6)
|
Stock Awards
($)
(7)
|
All Other Compensation
($)
(8)
|
Total
($)
|
|
|
|
|
|
|
|
Martin E. Franklin
|
—
|
—
|
2,000,000
|
2,000,000
|
|
Ian G.H. Ashken
|
95,000
|
99,997
|
—
|
194,997
|
|
Nicolas Berggruen
(2)
|
—
|
—
|
—
|
—
|
|
Christopher T. Fraser
(3)
|
—
|
—
|
—
|
—
|
|
Michael F. Goss
|
85,000
|
99,997
|
—
|
184,997
|
|
Ryan Israel
(4)
|
—
|
—
|
—
|
—
|
|
Nichelle Maynard-Elliott
(5)
|
28,125
|
105,067
|
—
|
133,192
|
|
E. Stanley O’Neal
|
85,000
|
99,997
|
—
|
184,997
|
|
(1)
|
On January 31, 2019, Rakesh Sachdev retired as the Company's CEO and Benjamin Gliklich was appointed as his replacement. Mr. Sachdev continues to serve as a director of the Company. In
2018
, as an employee of the Company, Mr. Sachdev did not receive compensation for his services as a director and is not included in this table. His
2018
compensation as an employee of the Company is shown in the
2018
Summary Compensation Table below. At the time of his appointment as CEO, Mr. Gliklich was appointed as a member of the Board, effective January 31, 2019. Scot R. Benson, the COO of the Company, was also appointed as a member of the Board in April 2019. As employees of the Company, they also do not receive compensation for their services as directors.
|
|
(2)
|
Mr. Berggruen had elected to waive all compensation for his services as a director in
2018
. Mr. Berggruen retired from the Board on June 25, 2018. There was no disagreement between Mr. Berggruen and the Company on any matter relating to the Company's operations, policies or practices.
|
|
(3)
|
Mr. Fraser was appointed as a member of the Board in April 2019.
|
|
(4)
|
Mr. Israel had elected to waive all compensation for his services as a director in
2018
. Mr. Israel, a partner at Pershing Square Capital Management, L.P., retired from the Board on February 4, 2019, following the repurchase by the Company from Pershing Square Capital Management, L.P. of
37 million
shares of common stock.
|
|
(5)
|
The Board appointed Ms. Maynard-Elliott as a director of the Company, effective August 15, 2018. The amount in the "Fee Earned or Paid in Cash" column represents a prorated amount based on her partial year of service.
|
|
(6)
|
The amounts shown in the "Fees Earned or Paid in Cash" column include the annual non-executive director fee and additional Committee and Committee Chairman fees for all directors, as applicable, as described above.
|
|
(7)
|
The amounts in the "Stock Awards" column reflect the aggregate grant date fair value of RSUs granted to directors in
2018
computed in accordance with FASB ASC Topic 718. For additional information on the valuation assumptions regarding the
2018
grants, refer to Note 9,
Long-Term Compensation Plans
, to the Consolidated Financial Statements included in our
2018
Annual Report. The amounts reflect the grant date fair value for these awards. Each of Messrs. Ashken, Goss and O'Neal were granted 8,741 RSUs on June 25, 2018, the date of the Company's
2018
annual meeting of stockholders, as compensation for their respective directorship in
2018
-
2019
. Ms. Maynard-Elliott was also granted 8,741 RSUs as compensation for her directorship in 2018-2019 upon her appointment to the Board on August 15, 2018. In each case, these RSUs were outstanding at December 31, 2018 and will vest on
June 5, 2019
, subject to continuous directorship through and on such vesting date.
|
|
(8)
|
Represents fees paid to Mariposa Capital, an affiliate of Mr. Franklin, pursuant to the Advisory Services Agreement. See "CORPORATE GOVERNANCE - Certain Relationships and Related Transactions - Transactions with Related Parties
"
above. Mr. Franklin, who serves as our founder director and Executive Chairman, does not receive any compensation for his services as a director.
|
|
Name
|
|
Age
|
|
Title
|
|
|
|
|
|
|
|
Benjamin Gliklich
|
|
34
|
|
Chief Executive Officer (CEO) and director nominee
|
|
Scot R. Benson
|
|
57
|
|
President and Chief Operating Officer (COO)
|
|
John E. Capps
|
|
54
|
|
Executive Vice President - General Counsel & Secretary (General Counsel)
|
|
Carey J. Dorman
|
|
30
|
|
Chief Financial Officer (CFO)
|
|
Section
|
Page
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Section
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Page
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Compensation Philosophy and Objectives
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Employment Arrangements
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Compensation-related Corporate Governance
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Executive Change in Control (CIC) Agreements
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Executive Compensation Setting Process
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Indemnity Agreements
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Components of the Executive Compensation Program
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Report of the Compensation Committee
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COMPENSATION PHILOSOPHY AND OBJECTIVES
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is tied to overall Company performance
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reflects each executive’s level of responsibility
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includes a significant incentive equity component
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reflects individual performance and contributions
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COMPENSATION-RELATED CORPORATE GOVERNANCE
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What We Do
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What We Don't Do
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l
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Pay for performance with a substantial majority of pay being performance-based and not guaranteed
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l
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Provide tax gross-ups for change-in-control payments
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l
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Consider peer groups in establishing compensation
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l
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Guarantee pay increases or equity awards for Named Executive Officers
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l
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Balance short- and long-term incentives
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l
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Allow hedging, pledging or short sales of the Company's stock
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l
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Use multi-year vesting terms for all executive officer equity awards
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l
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Allow liberal share recycling
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l
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When required, use an external, independent compensation consulting firm that provides no other services to the Company
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EXECUTIVE COMPENSATION SETTING PROCESS
|
||||
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Peer Group
|
||
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Albemarle Corporation
|
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W.R. Grace & Co.
|
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Ashland Global Holdings Inc.
|
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International Flavors & Fragrances Inc.
|
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Axalta Coating Systems Ltd.
|
|
Minerals Technologies Inc.
|
|
Cabot Corporation
|
|
Newmarket Corporation
|
|
Celanese Corporation
|
|
RPM International Inc.
|
|
Ferro Corporation
|
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A. Schulman, Inc.
|
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FMC Corporation
|
|
Sensient Technologies Corporation
|
|
H.B. Fuller Company
|
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COMPONENTS OF THE EXECUTIVE COMPENSATION PROGRAM
|
||||
|
Pay Component
|
Fixed or Variable
|
Business Purpose
|
Key Features
|
2018 Actions
|
|
|
|
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Base Salary
|
Fixed
|
Attract and retain high-quality executives needed to lead our complex global business
|
Peer Group and other market data used as reference points: responsibilities, individual performance, internal pay equity, compensation history and executive potential
|
Base salaries reflect individual performance and changes in the competitive marketplace for talent
|
|
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Annual Bonus Plan
|
Variable
|
Motivate and reward achievement of annual financial and individual performance targets set in conjunction with annual business planning process
|
Annual cash award paid after year-end upon achievement of targets
|
2018 performance metrics reflect the Arysta Sale: organic net sales growth and unlevered free cash flow, each measured on a continuing operations basis, in addition to adjusted EBITDA, as described herein
|
|
|
Other factors considered in determining target opportunity for individual executive: responsibilities, individual performance and internal pay equity
|
|||||
|
Attract and retain key executives
|
|||||
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LTI Program
|
Variable
|
Motivate and reward executive achievement of long-term financial targets in support of long-term strategic plan
|
LTI Awards designed to provide balance between share price appreciation, retention and long-term operating results using three-year performance and vesting periods
|
2018 program comprised (i) performance-based restricted stock units ("PRSUs") with performance metric based on adjusted organic EBITDA growth, (ii) time-based restricted stock units ("RSUs") with annual vesting in equal tranches over three years, and (iii) no stock options ("SOPs")
|
|
|
Other factors considered in determining target opportunity for individual executive: responsibilities, individual performance, internal pay equity, executive's potential and retention risk
|
|||||
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Attract and retain key executives
|
|||||
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Pay Component
|
Fixed or Variable
|
Business Purpose
|
Key Features
|
2018 Actions
|
|
Benefits and Other Perquisites
|
__
|
Attract and retain executive officers with appropriate health and welfare benefits
|
Competitive non-monetary benefits consistent with the marketplace
|
Generally consistent with 2017
|
|
Limited perquisites to convey additional value in connection with performing job duties
|
||||
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Cash Compensation - Base Salary (Fixed)
|
|
Cash Compensation - Annual Bonus Plan (Variable)
|
|
Performance Metric
|
Reasons for Selection
|
Weighting
|
|
Adjusted EBITDA*
|
Strong indicator of the Company's ongoing operating performance.
|
50%
|
|
Organic net sales growth*
|
Demonstrates the Company's ability to grow its existing business, without consideration of foreign currency translation, pass-through pricing of certain metals and acquisitions and/or divestitures, such as the Arysta Sale.
|
20%
|
|
Unlevered free cash flow*
|
Used in 2018 by the Company to assess business performance. Unlevered free cash flow excludes interest expense payments.
|
15%
|
|
Individual Goals
|
Supports and helps achieve strategic objectives and ties to areas of responsibility by focusing on people development within our organization. Generally funded on the same basis as the adjusted EBITDA performance metric.
|
15%
|
|
|
Target (100% payout)
|
2018
Actual Results
|
Weighted Payouts
|
|
Performance Metric
|
|||
|
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|
|
Adjusted EBITDA
(1)
|
$895 million
|
$855 million
|
69%
|
|
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|
|
|
|
Organic net sales growth
(1)
|
3.5%
|
3.2%
|
90%
|
|
|
|
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|
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Unlevered free cash flow
(1)
|
$240 million
|
$271 million
|
200%
|
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Individual Goals
(2)
|
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69%
|
|
|
|
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|
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Weighted Average Performance
|
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|
93%
|
|
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(1)
|
These financial measures are not prepared in accordance with GAAP. For a discussion of the Company’s use of non-GAAP financial measures, see page 37 of our
2018
Annual Report under "Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures." For definitions and reconciliations of these non-GAAP measures, see "APPENDIX A - NON-GAAP DEFINITIONS AND RECONCILIATIONS" in this Proxy Statement.
|
|
(2)
|
The individual goals for the Named Executive Officers in 2018 were based on the adjusted EBITDA performance metric.
|
|
Equity-Based Long-Term Incentives - LTI Program (Variable)
|
|
Benefits and Other Perquisites
|
|
Other Compensation-Related Practices and Policies
|
|
•
|
have a liberal definition of change in control;
|
|
•
|
provide termination payments or benefits without involuntary job loss or substantial diminution of duties;
|
|
•
|
provide termination cash payments in excess of 2.99 times base salary and annual cash target bonus; or
|
|
•
|
provide for tax gross-ups.
|
|
•
|
CEO: five times base salary;
|
|
•
|
Other officers: two times base salary; and
|
|
•
|
Other management equity recipients: one time base salary.
|
|
EMPLOYMENT ARRANGEMENTS
|
||||
|
EXECUTIVE CHANGE IN CONTROL (CIC) AGREEMENTS
|
||||
|
INDEMNITY AGREEMENTS
|
||||
|
REPORT OF THE COMPENSATION COMMITTEE
|
||||
|
Name and Principal Position
|
Year
|
Salary
($) |
Bonus
($) (6) |
Stock
Awards ($) (7) |
Option Awards ($)
(8)
|
Non-Equity
Incentive Plan Compensation ($) (9) |
All Other
Compensation ($) (10) |
Total
($)
|
|||||||
|
|
|
|
|
|
|
|
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|
|||||||
|
Rakesh Sachdev
(1)
|
2018
|
1,050,600
|
|
2,000,000
|
|
3,000,001
|
|
—
|
|
977,058
|
|
17,580
|
|
7,045,239
|
|
|
Former CEO
|
2017
|
1,030,000
|
|
—
|
|
2,868,046
|
|
750,000
|
|
1,222,700
|
|
17,280
|
|
5,888,026
|
|
|
2016
|
989,745
|
|
—
|
|
8,932,870
|
|
794,120
|
|
1,079,399
|
|
16,890
|
|
11,813,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
John P. Connolly
(2)
|
2018
|
439,900
|
|
83,333
|
|
475,006
|
|
—
|
|
409,107
|
|
17,580
|
|
1,424,926
|
|
|
Former CFO
|
2017
|
415,000
|
|
150,000
|
|
315,015
|
|
—
|
|
452,350
|
|
17,280
|
|
1,349,645
|
|
|
2016
|
125,615
|
|
50,000
|
|
562,899
|
|
—
|
|
77,776
|
|
1,223
|
|
817,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
John E. Capps
(3)
|
2018
|
520,200
|
|
416,667
|
|
525,005
|
|
—
|
|
483,786
|
|
17,580
|
|
1,963,238
|
|
|
EVP - General Counsel & Secretary
|
2017
|
510,000
|
|
—
|
|
501,900
|
|
131,255
|
|
555,900
|
|
17,280
|
|
1,716,335
|
|
|
2016
|
293,590
|
|
—
|
|
485,810
|
|
123,208
|
|
359,800
|
|
14,830
|
|
1,277,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Benjamin Gliklich
(4)
|
2018
|
479,880
|
|
550,000
|
|
525,005
|
|
—
|
|
446,288
|
|
34,753
|
|
2,035,926
|
|
|
Former EVP - Operations & Strategy
|
2017
|
465,000
|
|
—
|
|
501,900
|
|
131,255
|
|
506,850
|
|
17,280
|
|
1,622,285
|
|
|
2016
|
450,000
|
|
—
|
|
510,062
|
|
132,352
|
|
485,730
|
|
16,980
|
|
1,595,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
J. David Tolbert
(5)
|
2018
|
272,475
|
|
83,333
|
|
225,008
|
|
—
|
|
152,041
|
17,580
|
|
750,437
|
|
|
|
Former Chief Human Resources Officer
|
2017
|
262,500
|
|
—
|
|
191,196
|
|
50,003
|
|
171,675
|
17,280
|
|
692,654
|
|
|
|
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
(1)
|
Reflects Mr. Sachdev's compensation as CEO of the Company in
2018
. Mr. Sachdev retired as CEO of the Company on January 31, 2019.
|
|
(2)
|
Reflects Mr. Connolly's compensation as CFO of the Company in
2018
. Mr. Connolly resigned as CFO on March 12, 2019. For 2017, the amount in the Bonus column represents Mr. Connolly's one-time long-term incentive award granted in connection with his appointment as CFO on March 16, 2017.
|
|
(3)
|
Mr. Capps joined the Company as General Counsel on May 31, 2016. The amounts in the "Salary" and "Non-Equity Incentive Plan Compensation" columns for 2016 represent prorated amounts based on his partial year of service.
|
|
(4)
|
Reflects Mr. Gliklich's compensation as Executive Vice President - Operations & Strategy of the Company in
2018
. On January 31, 2019, Mr. Gliklich was appointed CEO of the Company.
|
|
(5)
|
Reflects Mr. Tolbert's compensation as former Chief Human Resources Officer of the Company in
2018
. On March 12, 2019, Mr. Tolbert announced his retirement as Chief Human Resources Officer of the Company. Mr. Tolbert will remain an employee of the Company until completion of a transition period. Mr. Tolbert was not a Named Executive Officer in 2016. As compared to the other Named Executive Officers, Mr. Tolbert was eligible for a flexible work schedule which translated into a lower base salary.
|
|
(6)
|
The 2018 amounts in this column represent a portion of the transaction bonuses paid in December 2018 in anticipation of the successful close of the Arysta Sale.
|
|
(7)
|
The amounts in this column represent the aggregate grant date fair value of equity awards granted during each respective year computed in accordance with FASB ASC Topic 718. For details on and assumption used in calculating the grant date fair value of the RSUs and PRSUs, see Note 9,
Long-Term Compensation Plans
, to the Consolidated Financial Statements included in our
2018
Annual Report; Note 9,
Long-Term Compensation Plans
, to the Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 28, 2018; and Note 6,
Long-Term Compensation Plans,
included in our annual report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 13, 2017. The grant date fair value attributable to the PRSUs pertains to the 100% target level of these awards if the performance conditions are satisfied and is based on the probable outcome of such conditions. The maximum grant date potential values for the
2018
PRSU and RSU awards for Messrs. Sachdev, Connolly, Capps, Gliklich and Tolbert are
$5,000,094
,
$791,690
,
$875,022
,
$875,022
and
$375,017
respectively.
|
|
(8)
|
There were no SOPs granted in
2018
. The amounts in this column reflect the aggregate grant date fair value of SOPs granted in 2017 and 2016 under the 2013 Plan calculated in accordance with FASB ASC Topic 718. For details on and assumption used in calculating these amounts, see Note 9,
Long-Term Compensation Plans
, to the Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 28, 2018; and Note 6,
Long-Term Compensation Plans,
included in our annual report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 13, 2017.
|
|
(9)
|
The amounts reported in this column reflect annual cash incentive compensation earned under our Annual Bonus Plan in
2018
, 2017 and 2016. Payments under this program are typically made in the first quarter of the year following the year in which the bonus was earned after finalization of the Company's audited financial statements. See "COMPENSATION DISCUSSION AND ANALYSIS -
Components of the Executive Compensation Program - Cash Compensation - Annual Bonus Plan (Variable)."
|
|
(10)
|
For all Named Executive Officers, these amounts in
2018
consist of: Company-sponsored life insurance: $1,080; and Company contribution to the 401(k) Plan: $16,500. For Mr. Gliklich, the
2018
amount also includes $17,173 of relocation expenses. Company contributions to the 401(k) Plan for each Named Executive Officer represent the aggregate match and non-elective contributions made by the Company to each Named Executive Officer in
2018
. Non-elective contributions of 3% of eligible compensation may be allocated to eligible participants who were credited with at least 1,000 hours of service in the year. For
2018
, the Company contributed $8,250 as non-elective contribution of 3% of eligible compensation to each Named Executive Officer.
|
|
|
|
|
Estimated Future Payouts
Under Non-Equity Incentive
Plan Awards
(1)
|
Estimated Future Payouts
Under Equity Incentive
Plan Awards
(2)
|
All Other
Stock
Awards:
Number
of
Shares
of Stock
or Units
(#)
(3)
|
All Other
Option
Awards:
Number of
Securities
Underlying
Options
(#)
|
Exercise
or Base
Price of
Option
Awards
($)
|
Grant
Date Fair
Value of
Stock and
Option
Awards
($)
(4)
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Grant Type
|
Grant
Date
|
Threshold
(#)
|
Target
($)
|
Maximum
($)
|
Threshold
(#)
|
Target
(#)
|
Maximum
(#)
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Rakesh Sachdev
|
Bonus
|
—
|
525,300
|
|
1,050,600
|
|
2,101,200
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
—
|
|
|
|
PRSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
97,566
|
|
195,131
|
|
390,262
|
|
—
|
|
—
|
—
|
2,000,093
|
|
||
|
RSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
97,552
|
|
—
|
—
|
999,908
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
John P. Connolly
|
Bonus
|
—
|
219,950
|
|
439,900
|
|
879,800
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
—
|
|
|
|
PRSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
15,448
|
|
30,896
|
|
61,792
|
|
—
|
|
—
|
—
|
316,684
|
|
||
|
RSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15,446
|
|
—
|
—
|
158,322
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
John E. Capps
|
Bonus
|
—
|
260,100
|
|
520,200
|
|
1,040,400
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
—
|
|
|
|
PRSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
17,074
|
|
34,148
|
|
68,296
|
|
—
|
|
—
|
—
|
350,017
|
|
||
|
RSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17,072
|
|
—
|
—
|
174,988
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Benjamin Gliklich
|
Bonus
|
—
|
239,940
|
|
479,880
|
|
959,760
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
—
|
|
|
|
PRSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
17,074
|
|
34,148
|
|
68,296
|
|
—
|
|
—
|
—
|
350,017
|
|
||
|
RSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17,072
|
|
—
|
—
|
174,988
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
J. David Tolbert
|
Bonus
|
—
|
81,743
|
|
163,485
|
|
326,970
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
—
|
|
|
|
PRSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
7,318
|
|
14,635
|
|
29,270
|
|
—
|
|
—
|
—
|
150,009
|
|
||
|
RSU
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,317
|
|
—
|
—
|
74,999
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
(1)
|
Amounts shown represent the payouts under the Annual Bonus Plan for
2018
at each payout level. Depending on the achievement of the relative performance level of each performance metric, an executive has the opportunity to earn from 0% to 200% of his Annual Bonus Plan target award for such metric. The actual payouts for
2018
can be found under "
Components of the Executive Compensation Program
—
Cash Compensation
-
Annual Bonus Plan (Variable)
" in "COMPENSATION DISCUSSION AND ANALYSIS" above and in the "
Non-Equity Incentive Plan Compensation
" column of the
2018
Summary Compensation Table above.
|
|
(2)
|
Amounts shown in the "Target" column are the number of PRSUs granted in
2018
under the 2013 Plan if adjusted organic EBITDA growth achieves its target goal of
$505 million
. The "threshold" column corresponds to the number of PRSUs earned if the adjusted organic EBITDA growth achieves its threshold goal of
$477 million
. The
|
|
(3)
|
All RSUs granted under the
2018
LTI Program vest at the rate of 33.3% per year, or immediately upon a change in control of Element Solutions. For additional information about the
2018
RSU awards, "
Components of the Executive Compensation Program
—
Equity-Based Long-Term Incentives
—
LTI Program (Variable)"
in "COMPENSATION DISCUSSION AND ANALYSIS" above.
|
|
(4)
|
The amounts in this column represent the aggregate grant date fair value of LTI Awards granted to the Named Executive Officers, calculated in accordance with FASB ASC Topic 718. The grant date fair value of PRSU awards pertains to the 100% target portion of those awards that will be payable in shares of common stock if the performance conditions are satisfied and is based on the probable outcome of such conditions. For further details on, and assumption used in, calculating the grant date fair value of LTI Awards, see Note 9,
Long-Term Compensation Plans
, to the Consolidated Financial Statements included in our
2018
Annual Report.
|
|
|
|
|
Stock Awards
(1)
|
|||||||||||||||
|
|
|
Option Awards
(1)
|
|
Time-Based RSUs
|
Performance-Based RSUs
|
|||||||||||||
|
|
Grant Date
|
Number of
Securities Underlying Unexercised Options
(#)
Exercisable |
Number of
Securities
Underlying
Unexercised
Options
(#)
Unexercisable
|
Option
Exercise Price ($) |
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
($) (2) |
Equity Incentive Plan Award: Number of Unearned Shares, Units or Other Rights That Have Not Vested
(#) |
Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested
($) (3) |
||||||||
|
Rakesh Sachdev
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
195,131
|
|
2,015,703
|
|
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
97,552
|
|
1,007,712
|
|
—
|
|
—
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
112,782
|
|
1,165,038
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
56,391
|
|
582,519
|
|
—
|
|
—
|
|
|
|
2/21/17
|
41,323
|
|
82,644
|
|
13.30
|
|
2/21/27
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
3/16/16
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
188,679
|
|
1,949,054
|
|
|
|
3/16/16
|
—
|
|
—
|
|
—
|
|
—
|
|
|
94,340
|
|
974,532
|
|
—
|
|
—
|
|
|
|
3/16/16
|
122,550
|
|
61,274
|
|
7.95
|
|
3/17/26
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
John P. Connolly
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
30,896
|
|
319,156
|
|
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
15,446
|
|
159,557
|
|
—
|
|
—
|
|
|
|
3/16/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
7,713
|
|
79,675
|
|
|
|
3/16/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
3,799
|
|
39,244
|
|
—
|
|
—
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
12,594
|
|
130,096
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
6,203
|
|
64,077
|
|
—
|
|
—
|
|
|
|
8/22/16
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
19,988
|
|
206,476
|
|
|
|
8/22/16
|
—
|
|
—
|
|
—
|
|
—
|
|
|
9,845
|
|
101,699
|
|
—
|
|
—
|
|
|
|
John E. Capps
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
34,148
|
|
352,749
|
|
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
17,072
|
|
176,354
|
|
—
|
|
—
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
19,736
|
|
203,873
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
9,869
|
|
101,947
|
|
—
|
|
—
|
|
|
|
2/21/17
|
7,232
|
|
14,463
|
|
13.30
|
|
2/21/27
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
5/31/16
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
26,260
|
|
271,266
|
|
|
|
5/31/16
|
—
|
|
—
|
|
—
|
|
—
|
|
|
13,130
|
|
135,633
|
|
—
|
|
—
|
|
|
|
5/31/16
|
17,077
|
|
8,538
|
|
9.52
|
|
6/1/26
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
Stock Awards
(1)
|
|||||||||||||||
|
|
|
Option Awards
(1)
|
|
Time-Based RSUs
|
Performance-Based RSUs
|
|||||||||||||
|
|
Grant Date
|
Number of
Securities Underlying Unexercised Options
(#)
Exercisable |
Number of
Securities
Underlying
Unexercised
Options
(#)
Unexercisable
|
Option
Exercise Price ($) |
Option
Expiration Date |
|
Number of Shares or Units of Stock That Have Not Vested
(#) |
Market Value of Shares or Units of Stock That Have Not Vested
($) (2) |
Equity Incentive Plan Award: 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) |
||||||||
|
Benjamin Gliklich
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
34,148
|
|
352,749
|
|
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
17,072
|
|
176,354
|
|
—
|
|
—
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
19,736
|
|
203,873
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
9,869
|
|
101,947
|
|
—
|
|
—
|
|
|
|
2/21/17
|
7,232
|
|
14,463
|
|
13.30
|
|
2/21/27
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
3/16/16
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
31,447
|
|
324,848
|
|
|
|
3/16/16
|
—
|
|
—
|
|
—
|
|
—
|
|
|
15,723
|
|
162,419
|
|
—
|
|
—
|
|
|
|
3/16/16
|
20,425
|
|
10,212
|
|
7.95
|
|
3/17/26
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
6/12/14
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
50,000
|
|
516,500
|
|
|
|
J. David Tolbert
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
14,635
|
|
151,180
|
|
|
2/19/18
|
—
|
|
—
|
|
—
|
|
—
|
|
|
7,317
|
|
75,585
|
|
—
|
|
—
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
7,518
|
|
77,661
|
|
|
|
2/21/17
|
—
|
|
—
|
|
—
|
|
—
|
|
|
3,760
|
|
38,841
|
|
—
|
|
—
|
|
|
|
2/21/17
|
2756
|
|
5,509
|
|
13.30
|
|
2/21/27
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(1)
|
LTI Awards become exercisable or vested in accordance with the equity award vesting summary set forth below, subject to the satisfaction of the applicable performance conditions (in the case of PRSUs) and accelerated vesting in certain circumstances. See "
Components of the Executive Compensation Program
—
Equity-Based Long-Term Incentives
—
LTI Program (Variable)"
in "COMPENSATION DISCUSSION AND ANALYSIS" above.
|
|
(2)
|
This column reflects the market value at
December 31, 2018
of the unvested outstanding RSUs determined by multiplying the number of shares underlying the RSUs by
$10.33
, the closing price of the Company's common stock on
December 31, 2018
.
|
|
(3)
|
This column reflects the market value at
December 31, 2018
of the unvested outstanding PRSUs assuming achievement of a 100% target payout level. The market value is determined by multiplying the number of shares underlying the PRSUs by
$10.33
, the closing price of the Company's common stock on
December 31, 2018
.
|
|
Equity Award Vesting Summary
|
||
|
PRSUs
|
Grant Date
|
Eligible for vesting on:
|
|
2/19/2018
|
February 19, 2021 (Adjusted Organic EBITDA Growth)
|
|
|
3/16/2017
|
December 31, 2019 (Return on Invested Capital, or ROIC) and February 20, 2020 (Total Shareholder Return, or TSR)
|
|
|
2/21/2017
|
December 31, 2019 (ROIC) and February 20, 2020 (TSR)
|
|
|
8/22/2016
|
December 31, 2018 (ROIC) and March 15, 2019 (TSR)
|
|
|
5/31/2016
|
December 31, 2018 (ROIC) and March 15, 2019 (TSR)
|
|
|
3/16/2016
|
December 31, 2018 (ROIC) and March 15, 2019 (TSR)
|
|
|
6/12/2014
|
Filing date of the Company's annual report on Form 10-K for the year ended December 31, 2018 (Adjusted EBITDA)
|
|
|
RSUs
|
Service Period
|
Fully vests on:
|
|
2/19/2018
|
Feb. 19, 2019; Feb. 19, 2020 and Feb. 19, 2021 (1/3 increments)
|
|
|
3/16/2017
|
March 15, 2020
|
|
|
2/21/2017
|
February 20, 2020
|
|
|
8/22/2016
|
August 22, 2019
|
|
|
5/31/2016
|
March 15, 2019
|
|
|
3/16/2016
|
March 15, 2019
|
|
|
SOPs
|
Grant Date
|
One-third vested/vests on each of:
|
|
2/21/2017
|
Feb. 21, 2018; Feb. 21, 2019 and Feb. 21, 2020
|
|
|
5/31/2016
|
May 31, 2017; May 31, 2018 and May 31, 2019
|
|
|
3/16/2016
|
March 16, 2017; March 16, 2018 and March 16, 2019
|
|
|
|
|
Option Awards
|
|
Stock Awards
|
||||||
|
Name
|
|
Number of Shares Acquired on Exercise
(#)
|
|
Value Realized on Exercise
($)
|
|
Award Type
|
|
Number of Shares Acquired on Vesting
(#)
|
|
Value Realized on Vesting
($)
|
|
Rakesh Sachdev
|
|
—
|
|
—
|
|
RSUs
(1)
|
|
250,000
|
|
2,550,000
|
|
|
|
—
|
|
—
|
|
PRSUs
(1)
|
|
250,000
|
|
2,550,000
|
|
John P. Connolly
|
|
—
|
|
—
|
|
RSUs
(2)
|
|
5,966
|
|
57,453
|
|
John E. Capps
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Benjamin Gliklich
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
J. David Tolbert
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1)
|
These PRSUs and RSUs were granted on January 5, 2016 to Mr. Sachdev and declared vested upon satisfaction of the timing and performance conditions, as certified by the Compensation Committee. The value realized, presented on a pre-tax basis, is determined by multiplying the number of shares acquired by $10.20, the closing price of the Company's common stock on December 28, 2018.
|
|
(2)
|
These RSUs were granted on August 22, 2016 to Mr. Connolly and vested on March 31, 2018. The value realized, presented on a pre-tax basis, is determined by multiplying the number of shares acquired by $9.63, the closing price of the Company's common stock on March 29, 2018, the last business day prior to the vesting date.
|
|
|
Potential Payments upon Termination or Change in Control
(1)
|
||||||||||||||||
|
|
Termination Without Cause or for Good Reason
|
|
Termination Without Cause or for Good Reason Following a Change in Control
(4)
|
||||||||||||||
|
Name
|
Salary ($)
|
Bonus
($)
|
LTI Awards Valuation
($)
|
Total
($)
|
|
Salary
($)
|
Bonus
($)
|
LTI Awards Valuation
($)
(5)
|
Total
($)
|
||||||||
|
Rakesh Sachdev
(2)
|
2,101,200
|
|
1,050,600
|
|
—
|
|
3,151,800
|
|
|
3,141,294
|
|
3,141,294
|
|
7,840,390
|
|
14,122,978
|
|
|
John P. Connolly
(3)
|
439,900
|
|
—
|
|
—
|
|
439,900
|
|
|
879,800
|
|
879,800
|
|
1,099,980
|
|
2,859,580
|
|
|
John E. Capps
|
—
|
|
—
|
|
—
|
|
—
|
|
|
1,040,400
|
|
1,040,400
|
|
1,248,738
|
|
3,329,538
|
|
|
Benjamin Gliklich
|
—
|
|
—
|
|
—
|
|
—
|
|
|
959,760
|
|
959,760
|
|
1,862,995
|
|
3,782,515
|
|
|
J. David Tolbert
|
—
|
|
—
|
|
—
|
|
—
|
|
|
544,950
|
|
354,218
|
|
343,267
|
|
1,242,435
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(1)
|
The total amounts set forth in this table do not include vested amounts or accumulated benefits through
December 31, 2018
, including vested or accumulated benefits under the Company-sponsored life insurance and 401(k) Plan, as those amounts are set forth in the "
All Other Compensation
" column of the
2018
Summary Compensation Table above.
|
|
(2)
|
If Mr. Sachdev's employment had been terminated by the Company without cause or if Mr. Sachdev had terminated his employment for good reason, Mr. Sachdev would have been entitled to receive a severance payment equal to
|
|
(3)
|
If Mr. Connolly's employment had been terminated by the Company without cause or if Mr. Connolly had terminated his employment for good reason, then Mr. Connolly would have been entitled to receive in 12 equal monthly installments a severance amount equal to 100% of his base salary as of the termination date. See "
Employment Arrangements
" in COMPENSATION DISCUSSION AND ANALYSIS above. Mr. Connolly resigned as CFO of the Company on March 12, 2019. See "-
Additional Information Regarding Payment Upon Termination of Employment or Change in Control
" below.
|
|
(4)
|
Under the CIC Agreements, upon a change in control, each Named Executive Officer is entitled to receive a lump sum equal to his short- or long-term target cash bonus awards and the value of any stock rights. In addition, if a change in control occurs and the executive's employment is terminated by the Company without cause or by the Named Executive Officer for good reason, in each case during the 6 months prior to or within 2 years following the change in control, such executive would be entitled to receive a lump sum termination cash payment equal to 2 times (or 2.99 times with respect to Mr. Sachdev) his base salary plus target bonus as of the date of termination or, if higher, the base salary and/or target bonus in effect immediately prior to the occurrence of the condition giving rise to good reason. See "
Executive Change in Control (CIC) Agreements
" in COMPENSATION DISCUSSION AND ANALYSIS above.
|
|
(5)
|
This column includes the value of accelerated unvested LTI Awards that would become exercisable or vest upon termination. Such LTI Awards are shown in the "
Outstanding Equity Awards at Year End
" table included above. For disclosure purposes only, it was assumed that 100% of any applicable target was achieved for all PRSUs as of
December 31, 2018
. With respect to SOPs, their value was calculated using
$10.33
, the closing price per share of the Company's common stock on
December 31, 2018
, less the per share SOP exercise price for the total number of "in-the-money" SOPs accelerated and deemed exercised. The difference between the 2016 SOP exercise price and the
$10.33
closing price on
December 31, 2018
represents a spread of
$2.38
per SOP for the 2016 SOP awards of Messrs. Sachdev and Gliklich, and
$0.81
for the 2016 SOP award of Mr. Capps. The value for PRSUs and RSUs was calculated using the
$10.33
closing price on
December 31, 2018
.
|
|
Plan Category
|
|
Number of securities to be issued upon exercise of outstanding options, and rights
(a) |
|
Weighted average exercise price of outstanding options, warrants and rights
(b) |
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
(c) (3) |
||||
|
Equity Compensation Plans approved by security holders:
|
|
|
|
|
|
|
||||
|
2013 Plan
|
|
6,363,059
|
|
(1)
|
$
|
10.27
|
|
(2)
|
7,652,165
|
|
|
ESPP
|
|
—
|
|
|
—
|
|
|
4,720,094
|
|
|
|
Equity Compensation Plans not approved by stockholders:
|
|
|
|
|
|
|
||||
|
None
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Other:
|
|
|
|
|
|
|
||||
|
None
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Total
|
|
6,363,059
|
|
|
$
|
10.27
|
|
|
12,372,259
|
|
|
(1)
|
Includes: (i)
536,772
shares to be issued upon the exercise of outstanding SOPs granted in 2017 and 2016; (ii)
1,002,085
shares to be issued upon the vesting of outstanding RSUs granted since 2014; (iii)
2,351,786
shares to be issued upon the payout of outstanding PRSUs assuming target performance; and (iv)
2,472,416
shares reserved for incremental payouts on PRSUs assuming maximum performance.
|
|
(2)
|
This value does not take into account any of the RSUs or PRSUs discussed in Note (1) above as they have no exercise price.
|
|
(3)
|
Includes shares available for issuance under the 2013 Plan and ESPP. The Company has no other equity compensation plans with shares available for issuance.
|
|
Directors and Executive Officers
|
|
Beneficial Owner
|
|
Company Position
|
Common Stock
(#)
|
|
SOPs Exercisable or Preferred Stock Convertible at April 10, 2019 or Within 60 Days Thereof
(#)
(7)
|
|
Total Stock and Stock-Based Holdings
(#)
|
Percent of Class
(%)**
|
|||
|
Benjamin Gliklich
|
|
CEO and Director
|
91,511
|
|
|
45,101
|
|
|
136,612
|
|
*
|
|
Scot R. Benson
|
|
COO and Director
|
140,329
|
|
|
26,742
|
|
|
167,071
|
|
|
|
John E. Capps
|
|
EVP - General Counsel & Secretary
|
291,740
|
|
|
40,079
|
|
|
331,819
|
|
*
|
|
Carey J. Dorman
|
|
CFO
|
12,729
|
|
|
—
|
|
|
12,729
|
|
*
|
|
J. David Tolbert
|
|
Former Chief Human Resources Officer
|
19,747
|
|
|
5,511
|
|
|
25,258
|
|
*
|
|
Martin E. Franklin
|
|
Executive Chairman
|
29,498,286
|
|
(1)
|
1,953,000
|
|
(2)
|
31,451,286
|
|
12.3
|
|
Ian G.H. Ashken
|
|
Director
|
555,861
|
|
(3)
|
8,741
|
|
(4)
|
564,602
|
|
*
|
|
Christopher T. Fraser
|
|
Director
|
10,000
|
|
|
—
|
|
|
10,000
|
|
*
|
|
Michael F. Goss
|
|
Director
|
219,358
|
|
(5)
|
8,741
|
|
(4)
|
228,099
|
|
*
|
|
Nichelle Maynard-Elliott
|
|
Director
|
—
|
|
|
8,741
|
|
(4)
|
8,741
|
|
*
|
|
E. Stanley O’Neal
|
|
Director
|
296,959
|
|
(6)
|
8,741
|
|
(4)
|
305,700
|
|
*
|
|
Rakesh Sachdev
|
|
Director and Former CEO
|
714,071
|
|
|
225,147
|
|
|
939,218
|
|
*
|
|
John P. Connolly
|
|
Former CFO
|
66,383
|
|
|
—
|
|
|
66,383
|
|
*
|
|
All Directors and Executive Officers as a group (11 persons):
|
|
N/A
|
31,830,844
|
|
|
2,325,033
|
|
|
34,155,877
|
|
13.3
|
|
(1)
|
As a result of the Irrevocable Proxy Agreement, dated May 3, 2018, Martin E. Franklin ("Franklin"), MEF Holdings II, LLLP ("Holdings II"), MEF Holdings, LLLP ("Holdings"), Mariposa Acquisition, LLC ("Mariposa" and together with Franklin, Holdings II and Holdings, the "Mariposa Reporting Persons") and Berggruen Holdings Ltd ("BHL") and the Nicolas Berggruen Charitable Trust (the "NB Charitable Trust" and together with BHL, the "Berggruen
|
|
(2)
|
Shares of our Series A Preferred Stock held directly by Mariposa that are convertible at any time at the option of the holder into the same number of shares of our common stock. Mr. Franklin is the manager of Mariposa and indirectly beneficially owns 61.32% of Mariposa, representing 649,992 shares of our Series A Preferred Stock.
|
|
(3)
|
Shares of our common stock held indirectly by Mr. Ashken through IGHA Holdings, LLLP and Mr. Ashken's trust. Does not include indirect interest held through Mariposa.
|
|
(4)
|
These RSUs were granted to Messrs. Ashken, Goss and O'Neal and to Ms. Maynard-Elliott as compensation for their
2018
directorship and will vest on
June 5, 2019
, subject to continuous directorship through and on such vesting date. With respect to Mr. Ashken, this amount does not include indirect interest in Series A Preferred Stock held through Mariposa.
|
|
(5)
|
Includes 124,120 shares of common stock held directly by Mr. Goss and 95,238 shares of common stock held by The Michael F Goss 2012 GST Non-Exempt Irrevocable Family Trust, Michael F Goss & R Bradford Malt Trustees U/Inst Dtd 9/27/2012 (the "Trust"). Mr. Goss is a trustee of the Trust and disclaims beneficial ownership.
|
|
(6)
|
Includes 239,882 shares of common stock held directly by Mr. O'Neal and 57,077 shares of common stock held indirectly by Mr. O'Neal's trust (reflecting the full distribution of Mr. O'Neal's GRAT on September 13, 2018 and, as a result, transfers of 92,915 shares to Mr. O'Neal personally and 57,077 shares to Mr. O'Neal's family trust).
|
|
(7)
|
This column includes (i) Series A Preferred Stock held directly by Mariposa which are convertible at any time at the option of the holder into the same number of shares of our common stock, (ii) shares underlying vested SOPs, or portions thereof, held by our executive officers, (iii) shares underlying SOPs, or portions thereof, held by our executive officers and expected to vest by June 10, 2019 (60 days of
April 10, 2019
), and (iv) shares underlying RSUs held by our directors and expected to vest by June 10, 2019.
|
|
Principal Beneficial Owners
|
|
|
|
Number of
Shares |
|
%
|
|
5% or Greater Stockholders
|
||||
|
|
|
|
|
|
|
Martin E. Franklin and Affiliates
(1)
|
|
31,451,286
|
|
12.3
|
|
FMR LLC
(2)
|
|
28,566,713
|
|
11.3
|
|
The Vanguard Group, Inc.
(3)
|
|
19,566,172
|
|
7.7
|
|
Bares Capital Management, Inc.
(4)
|
|
18,104,808
|
|
7.1
|
|
BlackRock, Inc.
(5)
|
|
16,554,673
|
|
6.5
|
|
Dimensional Fund Advisors LP
(6)
|
|
15,868,933
|
|
6.3
|
|
|
|
|
|
|
|
(1)
|
See footnote (1) under "—Directors and Executive Officers" above.
|
|
(2)
|
Based on a Schedule 13G filed jointly by FMR LLC and Abigail P. Johnson, a Director and the Chairman and Chief Executive Officer of FMR LLC on February 13, 2019. FMR LLC reported sole voting power with respect to 1,863,622 shares of common stock and each of FMR LLC and Abigail P. Johnson reported sole investment power over 28,566,713 shares of common stock. The address of FMR LLC is 245 Summer Street, Boston, Massachusetts 02210.
|
|
(3)
|
Based on a Schedule 13G filed on February 12, 2019. The Vanguard Group, Inc. has sole voting power over 119,185 shares of common stock; shared voting power over 46,685 shares; sole dispositive power over 19,424,202 shares and shared dispositive power over 141,970 shares. The address of the principal business office of The Vanguard Group, Inc. is 100 Vanguard Blvd., Malvern, PA 19355.
|
|
(4)
|
Based on a Schedule 13G/A filed on February 14, 2019. Bares Capital Management, Inc. and Mr. Brian T. Bares have shared voting and dispositive power over 18,006,166 shares of common stock. Mr. Bares has sole voting and dispositive power over 98,642 shares of common stock. Mr. Bares is President of Bares Capital Management, Inc. The business address of Bares Capital Management, Inc. is 12600 Hill Country Blvd, Suite R-230, Austin, Texas 78738.
|
|
(5)
|
Based on a Schedule 13G filed by BlackRock, Inc. on February 8, 2019. BlackRock, Inc. reported sole voting power with respect to 15,678,002 shares of common stock and sole dispositive power over 16,554,673 shares of common stock. The address of BlackRock, Inc. is 55 East 52nd Street, New York, NY 10055.
|
|
(6)
|
Based on a Schedule 13G filed on February 8, 2019. Dimensional Fund Advisors LP or its subsidiaries ("Dimensional") furnishes investment advice to four investment companies registered under the Investment Company Act of 1940, and serves as investment manager or sub-adviser to certain other commingled funds, group trusts and separate accounts (such investment companies, trusts and accounts, collectively referred to as the "Funds"). In its role as investment advisor, sub-adviser and/or manager, Dimensional may possess voting and/or investment power over the Company's shares of common stock that are owned by the Funds, and may be deemed to be the beneficial owner of such shares. However, all shares are owned by the Funds. Dimensional disclaims beneficial ownership of such securities. Dimensional has sole power to vote over 15,437,478 shares of common stock and the sole power to dispose over 15,868,933 shares of common stock. The address of Dimensional is Building One, 6300 Bee Cave Road, Austin, Texas, 78746.
|
|
•
|
is tied to overall Company performance;
|
|
•
|
includes a significant incentive equity component;
|
|
•
|
reflects each executive's level of responsibility; and
|
|
•
|
reflects individual performance and contributions.
|
|
REPORT OF THE AUDIT COMMITTEE
|
||||
|
Services Provided
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
(in millions)
|
|
||||||||
|
Audit Fees
|
|
$
|
14.4
|
|
|
$
|
21.2
|
|
||||
|
Audit-Related Fees
|
|
0.0
|
|
|
0.3
|
|
||||||
|
Tax Fees
|
|
0.2
|
|
|
0.0
|
|
||||||
|
All Other Fees
|
|
0.0
|
|
|
0.0
|
|
||||||
|
Total
|
|
$
|
14.6
|
|
|
$
|
21.5
|
|
||||
|
•
|
audits of the Company's consolidated financial statements;
|
|
•
|
review of the Company's interim condensed consolidated financial statements included in quarterly reports;
|
|
•
|
services that are normally provided by the Company’s independent registered public accounting firm in connection with statutory and regulatory filings or engagements and attest services, except those not required by statute or regulation; and
|
|
•
|
annual audit of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act of 2002, integrated with the audit of our annual financial statements.
|
|
|
|
Year Ended December 31,
|
||
|
($ amounts in millions)
|
|
2018
|
||
|
Net loss attributable to common stockholders
|
|
$
|
(324.4
|
)
|
|
Add (subtract):
|
|
|
||
|
Net income (loss) attributable to the non-controlling interests
|
|
4.5
|
|
|
|
Income tax expense
|
|
110.9
|
|
|
|
Interest expense, net
|
|
315.0
|
|
|
|
Depreciation expense
|
|
62.4
|
|
|
|
Amortization expense
|
|
219.2
|
|
|
|
EBITDA
|
|
387.6
|
|
|
|
Adjustments to reconcile to Adjusted EBITDA:
|
|
|
||
|
Restructuring expense
|
|
12.9
|
|
|
|
Acquisition and integration costs
|
|
13.4
|
|
|
|
Nonrecourse factoring
|
|
8.1
|
|
|
|
Foreign exchange loss on foreign denominated external and internal long-term debt
|
|
(17.5
|
)
|
|
|
Arysta separation
|
|
28.2
|
|
|
|
Impairment on sale of Arysta
|
|
450.0
|
|
|
|
Gain on sale of equity investment
|
|
(11.3
|
)
|
|
|
Change in fair value of contingent consideration
|
|
(21.8
|
)
|
|
|
Other, net
|
|
11.2
|
|
|
|
Impact of acquisitions
|
|
(6.1
|
)
|
|
|
Adjusted EBITDA
|
|
$
|
854.7
|
|
|
|
% change
|
||||||||||
|
|
Reported Net Sales Growth
|
|
Impact of Currency
|
|
Constant Currency
|
|
Pass-Through Metals Pricing
|
|
Acquisitions/Dispositions
|
|
Organic Net Sales Growth
|
|
Electronics
|
3.1%
|
|
(1.2)%
|
|
1.9%
|
|
0.3%
|
|
(0.5)%
|
|
1.7%
|
|
Industrial & Specialty
|
6.3%
|
|
(1.0)%
|
|
5.3%
|
|
—%
|
|
—%
|
|
5.3%
|
|
Total
|
4.4%
|
|
(1.1)%
|
|
3.3%
|
|
0.2%
|
|
(0.3)%
|
|
3.2%
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|