Filed by the Registrant
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☒
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Filed by a party other than the Registrant
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☐
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☐
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Preliminary Proxy Statement
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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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☒
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Definitive Proxy Statement
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☐
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Definitive Additional Materials
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☐
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Soliciting Material under § 240.14a-12
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No fee required.
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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(1
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)
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Title of each class of securities to which transaction applies:
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(2
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)
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Aggregate number of securities to which transaction applies:
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(3
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)
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
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(4
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)
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Proposed maximum aggregate value of transaction:
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(5
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)
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Total fee paid:
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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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(1
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)
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Amount previously paid:
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(2
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)
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Form, Schedule or Registration Statement No.:
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(3
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)
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Filing Party:
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(4
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)
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Date Filed:
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Sincerely yours,
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Scott N. Flanders
Chief Executive Officer and Director
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1.
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To elect three (3) Class II directors (Andrea C. Brimmer, Beth A. Brooke and Randall S. Livingston) to serve for terms of three years and until their respective successors are duly elected and qualified, subject to earlier resignation or removal;
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2.
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To ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2020;
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3.
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To vote to approve, on an advisory basis, the compensation of our Named Executive Officers;
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4.
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To vote to approve the adoption of our 2020 Employee Stock Purchase Plan; and
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5.
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To transact such other business as may properly come before the Annual Meeting or at any postponement or adjournment of the Annual Meeting.
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By Order of the Board of Directors,
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Scott Giesler
Secretary
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Whether or not you expect to attend the Annual Meeting, we encourage you to read the proxy statement and submit your proxy or voting instructions as promptly as possible in order to ensure your representation at the Annual Meeting. We strongly encourage you to vote.
You may submit your proxy or voting instructions for the Annual Meeting by using the telephone or the Internet, or if you requested to receive printed proxy materials, you may submit your proxy or voting instructions by completing, signing, dating and returning your proxy card or voting instruction form in the pre-addressed envelope provided. For specific instructions on how to vote your shares, please refer to the section entitled “Questions and Answers about the Proxy Materials and the Annual Meeting” in this proxy statement and the instructions on the proxy, voting instruction form or Notice of Internet Availability of Proxy Materials. Even if you have given your proxy, you may still vote at the Annual Meeting if you attend the Annual Meeting.
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1.
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The election of three (3) Class II directors (Andrea C. Brimmer, Beth A. Brooke and Randall S. Livingston) to serve for terms of three years and until their respective successors are duly elected and qualified, subject to earlier resignation or removal (Proposal 1);
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2.
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The ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2020 (Proposal 2);
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3.
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A vote to approve, on an advisory basis, the compensation of our Named Executive Officers (Proposal 3); and
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4.
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A vote to approve the adoption of our 2020 Employee Stock Purchase Plan (Proposal 4).
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1.
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“FOR” the election of the nominated Class II directors (Proposal 1);
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2.
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“FOR” the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2020 (Proposal 2);
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3.
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“FOR” the approval, on an advisory basis, of the compensation of our Named Executive Officers (Proposal 3); and
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4.
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“FOR” the approval of the adoption of our 2020 Employee Stock Purchase Plan (Proposal 4).
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•
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By Internet.
Stockholders of record of our common stock as of the Record Date with Internet access may submit proxies by following the Internet voting instructions on the Notice or, in the case of stockholders of record who have requested to receive printed proxy materials, by accessing the website
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•
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By Telephone.
Stockholders of record of our common stock as of the Record Date who live in the United States or Canada may submit proxies by following the telephone voting instructions on their Notice or, in the case of stockholders of record who have requested to receive printed proxy materials, by following the telephone voting instructions specified on their proxy cards. Stockholders who hold shares beneficially in street name, live in the United States or Canada and have requested to receive printed proxy materials may provide voting instructions by telephone by calling the number specified on the voting instruction forms provided by their brokers, banks or nominees. Please check the voting instruction form for telephone voting availability.
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•
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By Mail.
Stockholders of record of our common stock as of the Record Date who have requested printed copies of their proxy materials may submit proxies by completing, signing and dating their proxy cards and mailing them in the accompanying pre-addressed envelopes. If you return your signed proxy but do not indicate your voting preferences, your shares will be voted on your behalf “FOR” the Class II nominees to the board of directors (Proposal 1), “FOR” the ratification of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2020 (Proposal 2), “FOR” the approval, on an advisory basis, of the compensation of our Named Executive Officers (Proposal 3) and “FOR” the approval of the adoption of our 2020 Employee Stock Purchase Plan (Proposal 4). Stockholders who hold shares beneficially in street name and have requested to receive printed proxy materials may provide voting instructions by mail by completing, signing and dating the voting instruction forms provided by their brokers, banks or other nominees and mailing them in the accompanying pre-addressed envelopes.
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•
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By Virtually Attending the Annual Meeting.
Shares held in your name as the stockholder of record may be voted by virtually attending the Annual Meeting in person or any postponement or adjournment of the Annual Meeting. To participate in the Annual Meeting, you will need the 16-digit control number included on your Notice, on your proxy card or on the instructions that accompanied your proxy materials.
Even if you plan to attend the Annual Meeting, we recommend that you also submit your proxy or voting instructions by mail, telephone, or Internet so that your vote will be counted if you later decide not to attend the Annual Meeting
.
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Name
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Age
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Position and Office Held with the Company
|
Director Since
|
|||
Andrea C. Brimmer
(1)
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54
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Director
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2018
|
|||
Beth A. Brooke
(2)
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60
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Director
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2019
|
|||
Randall S. Livingston
(3)
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66
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Director
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2008
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(1)
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Ms. Brimmer serves as a member of the compensation committee, the nominating and corporate governance committee and the strategy committee of our board of directors.
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(2)
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Ms. Brooke serves as chairperson of the government and regulatory affairs committee and as a member of the audit committee and the strategy committee.
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(3)
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Mr. Livingston serves as chairperson of the audit committee and as a member of the government and regulatory affairs committee of our board of directors.
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Name
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Age
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Position and Office Held with the Company
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Year Term Expires
|
|||
Scott N. Flanders
(1)
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63
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Chief Executive Officer and Director
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2022
|
|||
Michael D. Goldberg
(2)
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62
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Director
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2022
|
|||
Jack L. Oliver, III
(3)
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51
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Director
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2021
|
|||
Dale B. Wolf
(4)
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66
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Director
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2021
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(1)
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Mr. Flanders serves as a member of the equity incentive committee of our board of directors.
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(2)
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Mr. Goldberg serves as chairperson of the strategy committee and as a member of the audit committee of our board of directors.
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(3)
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Mr. Oliver serves as our lead independent director, as chairperson of the nominating and corporate governance committee and as a member of the compensation committee and the government and regulatory affairs committee of our board of directors.
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(4)
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Mr. Wolf serves as chairperson of the compensation committee and as a member of the nominating and corporate governance committee and the equity incentive committee of our board of directors.
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•
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appoints a firm to serve as independent accountant to audit our financial statements;
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•
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discusses the scope and results of the audit with the independent accountant and reviews with management and the independent accountant our interim and year-end operating results;
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•
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reviews the adequacy of our internal accounting controls and audit procedures;
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•
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approves (or, as permitted, pre-approves) all audit and non-audit services to be performed by the independent accountant; and
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•
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prepares the report that the Securities and Exchange Commission requires in our annual proxy statement.
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•
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establishes the corporate goals and objectives that pertain to the variable compensation of our chief executive officer;
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•
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evaluates our chief executive officer’s performance;
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•
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determines our chief executive officer’s compensation, based on the committee’s evaluation of his or her performance and other relevant criteria;
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•
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determines, in consultation with our chief executive officer, the compensation of our executive officers other than the chief executive officer;
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•
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makes recommendations to our board of directors regarding the compensation of members of our board of directors;
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•
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makes recommendations to our board of directors regarding adopting or amending equity incentive plans (including changes in the number of shares reserved for issuance thereunder);
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•
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reviews and makes recommendations to our board of directors with respect to incentive compensation and equity plans;
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•
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administers our equity incentive plans and may delegate to another committee of our board of directors the concurrent authority to make awards under our equity incentive plans to individuals other than executive officers;
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•
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reviews and discusses with management the compensation discussion and analysis to be included in our proxy statement or annual report and issues any compensation-related report required by the Securities and Exchange Commission to be included in our proxy statement or annual report; and
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•
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assesses risks relating to compensation plans and arrangements.
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•
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identifies, evaluates and recommends nominees to our board of directors and committees of our board of directors;
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•
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conducts searches for appropriate members of the board of directors and oversees the evaluation of the performance of our board of directors and of individual directors; and
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•
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reviews developments in corporate governance practices and makes recommendations to the board of directors concerning corporate governance matters.
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•
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reviews our goals and objectives relating to the governmental affairs, regulatory, public policy and political developments impacting our business;
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•
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provides insight and awareness to the board of directors on emerging issues relating to political and regulatory development at the federal and state levels, and the practical impact to us of such developments; and
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•
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assists in the preparation of our response to any unusual situation or crisis relating to a regulatory or political development.
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•
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reviews our long-range financial and strategic planning goals and objectives;
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•
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reviews the allocations of corporate resources recommended by management;
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•
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recommends acquisitions, divestitures investments, joint ventures and strategic transactions to the board of directors and to management; and
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•
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evaluates the execution, performance, financial results and integration of any completed strategic transactions.
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Board of Directors Cash Compensation
|
Fees (Effective October 1, 2019)
|
Fees (Prior to October 1, 2019)
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||||||
Board Member Annual Retainer
|
$
|
50,000
|
|
$
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30,000
|
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||
Lead Independent Director Additional Annual Retainer
|
$
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35,000
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$
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25,000
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Chairperson of the Board Additional Annual Retainer
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$
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35,000
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$
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35,000
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Committee Chair Annual Retainers
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||||||||
Audit Committee
|
$
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25,000
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$
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25,000
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Compensation Committee
|
$
|
15,000
|
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$
|
12,500
|
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Nominating and Corporate Governance Committee
|
$
|
10,000
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$
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7,500
|
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Government and Regulatory Affairs Committee
|
$
|
10,000
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$
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10,000
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|
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Strategy Committee
|
$
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15,000
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$
|
10,000
|
|
||
Non-Chair Committee Member Annual Retainers
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||||||||
Audit Committee
|
$
|
10,000
|
|
$
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10,000
|
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||
Compensation Committee
|
$
|
7,500
|
|
$
|
5,000
|
|
||
Nominating and Corporate Governance Committee
|
$
|
5,000
|
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$
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3,500
|
|
||
Government and Regulatory Affairs Committee
|
$
|
5,000
|
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$
|
5,000
|
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||
Strategy Committee
|
$
|
7,500
|
|
$
|
5,000
|
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•
|
Initial Equity Grants
. Each non-employee director who first becomes a member of our board of directors receives a one-time grant of time-based restricted stock units (RSUs) with a value of $200,000, based on the 20-day volume-weighted average trading price of eHealth common stock prior to the date of grant. These initial equity award grants occur when the director takes office. A director who previously was employed by us is not eligible for this grant. The RSUs vest annually over four years from the date of grant, subject to the director’s continued service with us.
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•
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Annual Equity Grants.
Each non-employee director continuing service on our board of directors also receives, on the date of each annual stockholders’ meeting, an annual grant of RSUs with a value of $200,000, based on the 20-day volume-weighted average trading price prior to the date of grant. The RSUs vest as to 100% of the shares subject to the grant on the day prior to our annual stockholder meeting, approximately one year following the grant date, subject to the director’s continued service with us. A new director will not receive the initial grant and an annual grant in the same calendar year. A non-employee director who was previously employed by us is eligible for these annual grants.
|
•
|
Equity awards granted to non-employee directors under the 2014 Equity Incentive Plan will become fully vested upon a change in control of eHealth.
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Name
|
Fees Earned in Cash
|
Stock Awards
(1)
|
Total
|
|||||||||
Andrea C. Brimmer
(2)
|
$
|
50,000
|
|
$
|
155,073
|
|
$
|
205,073
|
|
|||
Scott N. Flanders
(3)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|||
Beth A. Brooke
(4)
|
$
|
26,875
|
|
$
|
134,583
|
|
$
|
161,458
|
|
|||
Michael D. Goldberg
(5)
|
$
|
65,625
|
|
$
|
155,073
|
|
$
|
220,698
|
|
|||
Randall S. Livingston
(6)
|
$
|
67,625
|
|
$
|
155,073
|
|
$
|
222,698
|
|
|||
Jack L. Oliver, III
(7)
|
$
|
72,500
|
|
$
|
155,073
|
|
$
|
227,573
|
|
|||
Dale B. Wolf
(8)
|
$
|
25,000
|
|
$
|
155,247
|
|
$
|
180,247
|
|
|||
Ellen O. Taushcer
(9)
|
$
|
40,000
|
|
$
|
—
|
|
$
|
—
|
|
(1)
|
Amounts shown do not reflect compensation actually received. Amounts shown reflect the grant date fair value of the restricted stock units granted in 2019, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718,
Compensation—Stock Compensation
(FASB ASC Topic 718). Our accounting policies regarding equity compensation and the assumptions used to compute the fair value of our equity awards are set forth in Notes 1 and 5 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019.
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(2)
|
Ms. Brimmer earned a $35,000 annual retainer as a non-employee member of the board of directors, $5,000 for her position as a member of the audit committee, $4,375 for her position as a member of the compensation committee, $1,250 for her position as a member of the nominating and corporate governance committee and $4,375 for her position as a member of the strategy committee.
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(3)
|
Mr. Flanders does not receive any compensation for his services as a member of our board of directors. Mr. Flanders’ compensation for his services as our chief executive officer is disclosed in
Executive Compensation, Say-On-Pay, Independence of Advisors—Compensation Discussion and Analysis and 2019 Summary Compensation Table.
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(4)
|
Ms. Brooke earned a $20,000 annual retainer as a non-employee member of the board of directors, $2,500 for her position as chairperson of the government and regulatory affairs committee, $2,500 for her position as a member of the audit committee and $1,875 for her position as a member of the strategy committee.
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(5)
|
Mr. Goldberg earned a $35,000 annual retainer as a non-employee member of the board of directors
,
$10,000 for his position as a member of the audit committee, $9,375 for his position as chairperson of the compensation committee and $11,250 for his position as chairperson of the strategy committee.
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(6)
|
Mr. Livingston earned a $35,000 annual retainer as a non-employee member of the board of directors, $25,000 for his position as chairperson of the audit committee, $2,625 for his position as a member of the nominating and corporate governance committee, $1,250 for his position as a member of the government and regulatory affairs committee and $3,750 for his position as a member of the strategy committee.
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(7)
|
Mr. Oliver earned a $35,000 annual retainer as a non-employee member of the board of directors, $15,000 for his position as lead independent director of the board of directors, $8,125 for his position as chairperson of the nominating and corporate governance committee, $7,500 for his position as chairperson and $1,250 for his position as member of the government and regulatory affairs committee and $5,625 for his position as a member of the compensation committee.
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(8)
|
Mr. Wolf earned a $20,000 annual retainer as a non-employee member of the board of directors, $3,750 for his position as chairperson of the compensation committee and $1,250 for his position as a member of the nominating and corporate governance committee.
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(9)
|
Prior to passing away on April 29, 2019, Ms. Tauscher earned a $15,000 annual retainer as a non-employee member of the board of directors, $17,500 for her position as chairperson of the board of directors, $5,000 for her position as a member of the audit committee and $2,500 for her position as a member of the government and regulatory affairs committee.
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Number of Securities
Underlying Equity Awards
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|||||||||||||
Director
|
Grant
Date
|
Type of Award
|
Shares
Granted
|
Shares Subject to
Unexercised
Options
Outstanding and
Unvested
Restricted Stock
Units as of
December 31, 2019
|
Aggregate
Stock Options
Outstanding
as of December 31, 2019
|
Aggregate
Unvested
Restricted Stock
Units as of
December 31, 2019
|
||||||||||
Andrea C. Brimmer
|
12/21/2018
|
Restricted Stock Units
(1)
|
4,067
|
|
3,051
|
|
—
|
|
3,051
|
|
||||||
6/11/2019
|
Restricted Stock Units
(2)
|
2,222
|
|
2,222
|
|
—
|
|
2,222
|
|
|||||||
Beth A. Brooke
|
8/28/2019
|
Restricted Stock Units
(1)
|
1,460
|
|
1,460
|
|
—
|
|
1,460
|
|
||||||
Michael D. Goldberg
|
6/11/2019
|
Restricted Stock Units
(2)
|
2,222
|
|
2,222
|
|
—
|
|
2,222
|
|
||||||
Randall S. Livingston
|
6/11/2019
|
Restricted Stock Units
(2)
|
2,222
|
|
2,222
|
|
—
|
|
2,222
|
|
||||||
Jack L. Oliver, III
|
6/11/2019
|
Restricted Stock Units
(2)
|
2,222
|
|
2,222
|
|
—
|
|
2,222
|
|
||||||
Dale B.Wolf
|
8/2/2019
|
Restricted Stock Units
(1)
|
1,533
|
|
1,533
|
|
—
|
|
1,533
|
|
(1)
|
Restricted stock units vest as to 25% of the shares subject to the grant on each anniversary of the grant date.
|
(2)
|
Restricted stock units vest as to 100% of the shares subject to the grant on the day prior to our annual stockholder meeting approximately one year following the grant date.
|
Name
|
Age
|
Title
|
|||
Scott N. Flanders
|
63
|
|
Chief Executive Officer and Director
|
||
David K. Francis
|
52
|
|
Chief Operating Officer
|
||
Timothy C. Hannan
|
42
|
|
Chief Revenue Officer
|
||
Phillip A. Morelock
|
43
|
|
Chief Digital Officer
|
||
Gregg R. Ratkovic
|
51
|
|
Senior Vice President, Carrier and Business Development
|
||
Derek N. Yung
|
47
|
|
Senior Vice President, Chief Financial Officer
|
•
|
Our compensation committee may grant equity awards to our directors, officers, employees or consultants;
|
•
|
Our equity incentive committee may grant equity awards to our employees or consultants, subject to the limitations that (i) the recipient has not already received an equity award from us, (ii) the recipient is not an officer or director, and (iii) the equity incentive committee may not grant options to purchase shares of our common stock or stock appreciation rights for more than 50,000 shares per grantee, and may not grant restricted stock or restricted stock units for more than 20,000 shares per grantee, unless the compensation committee approves a revised limit;
|
•
|
Our compensation committee will approve grants of equity awards (i) to new hires or to recently promoted employees at the first compensation committee meeting on or after the employee’s first day
|
•
|
For accounting, tax and securities law purposes, all awards are effective on the “date of grant,” which is the earliest day that is both (i) the third Tuesday of a month and (ii) at least the 10th business day after the date when the applicable committee approved the awards; and
|
•
|
The exercise price of all options and stock appreciation rights is required to be equal to or greater than the closing price of our common stock on the date of grant.
|
•
|
To recommend a candidate for election to the board of directors, a stockholder meeting the criteria set forth above must notify the nominating and corporate governance committee by writing to our general counsel at the following address:
|
•
|
The stockholder’s notice is required to set forth the following information:
|
•
|
the candidate’s name and home and business contact information;
|
•
|
detailed biographical data and relevant qualifications of the candidate;
|
•
|
a statement from the recommending stockholder in support of the candidate, particularly within the context of the criteria for board membership set forth below;
|
•
|
information regarding any relationship between the candidate and us;
|
•
|
the candidate’s written consent to be named in our proxy statement and proxy if selected, and to serve on our board of directors if elected;
|
•
|
evidence of the required ownership of common stock by the recommending stockholder; and
|
•
|
other information that the stockholder believes is relevant in considering the candidate.
|
•
|
the current size, composition and organization of the board of directors and the needs of the board of directors and its committees;
|
•
|
such factors as character, integrity, judgment, diversity of experience, independence, area of expertise, corporate experience, length of service, potential conflicts of interest and other commitments; and
|
•
|
such other factors as the nominating and corporate governance committee may consider appropriate.
|
•
|
develop the agendas for all meetings of the board of directors with the chief executive officer; and
|
•
|
call special meetings of the independent directors, develop agendas for such meetings and chair all meetings of independent directors.
|
Name and Address of Beneficial Owner
(1)
|
Number of
Shares
Beneficially
Owned
|
Percentage of
Shares Beneficially
Owned*
|
||||
5% Stockholders
|
||||||
Entities affiliated with BlackRock, Inc.
(2)
55 East 52nd Street New York, NY 10022 |
3,157,828
|
|
12.3
|
%
|
||
FMR, LLC
(3)
245 Summer Street Boston, MA 02210 |
1,686,464
|
|
6.6
|
%
|
||
The Vanguard Group
(4)
100 Vanguard Blvd. Malvern, PA 19355 |
1,360,612
|
|
5.3
|
%
|
Name and Address of Beneficial Owner
(1)
|
Number of
Shares
Beneficially
Owned
|
Percentage of
Shares Beneficially
Owned*
|
|||
Named Executive Officers and Directors
|
|||||
Scott N. Flanders
(5)
|
849,758
|
|
3.2%
|
||
David K. Francis
(6)
|
180,615
|
|
*
|
||
Timothy C. Hannan
(7)
|
29,118
|
|
*
|
||
Robert S. Hurley
(8)
|
81,672
|
|
*
|
||
Derek N. Yung
(9)
|
82,908
|
|
*
|
||
Andrea C. Brimmer
|
1,016
|
|
*
|
||
Beth A. Brooke
|
1,000
|
|
*
|
||
Michael D. Goldberg
(10)
|
87,386
|
|
*
|
||
Randall S. Livingston
(11)
|
49,704
|
|
*
|
||
Jack L. Oliver
|
38,637
|
|
*
|
||
Dale B. Wolf
|
3,000
|
|
*
|
||
All named executive officers, executive officers and directors, as a group (13 persons)
(12)
|
1,415,360
|
|
5.5%
|
*
|
Represents beneficial ownership of less than one percent of our outstanding common stock.
|
(1)
|
Unless otherwise indicated, the address for each beneficial owner is c/o eHealth, Inc., 2625 Augustine Drive, Second Floor, Santa Clara, CA 95054.
|
(2)
|
According to a Schedule 13G filed on February 4, 2020 with the Securities and Exchange Commission, 3,157,828 shares of common stock are deemed to be beneficially owned by BlackRock, Inc. and certain of its subsidiaries including BlackRock Fund Advisors on behalf of various other persons known to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, our common stock as of December 31, 2019. BlackRock Fund Advisors beneficially owns more than 5% of the total outstanding shares of our common stock.
|
(3)
|
According to a Schedule 13G filed on February 7, 2020 with the Securities and Exchange Commission, 1,686,464 shares of common stock are deemed to be beneficially owned by FMR, LLC and certain of its subsidiaries and affiliates including FMR Co., Inc on behalf of various other persons known to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, our common stock as of December 31, 2019. FMR Co., Inc beneficially owns more than 5% of the total outstanding shares of our common stock.
|
(4)
|
According to a Schedule 13G filed on February 12, 2020 with the Securities and Exchange Commission, 1,360,612 shares of common stock are deemed to be beneficially owned by the Vanguard Group and certain of its subsidiaries on behalf of various other persons known to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, our common stock as of December 31, 2019. No one such person’s interest in our common stock is more than 5% of the total outstanding shares of our common stock.
|
(5)
|
Includes 293,748 shares of common stock issuable upon exercise of stock options, 442,124 shares of vested restricted stock units that have been deferred pursuant to the terms of a deferral election and 3,000 shares held in accounts for Mr. Flanders’ grandchildren under the Uniform Transfers to Minor Act.
|
(6)
|
Includes 111,200 shares of vested restricted stock units that have been deferred pursuant to the terms of a deferral election.
|
(7)
|
Includes 10,937 shares of common stock issuable upon exercise of stock options.
|
(8)
|
Includes 69,483 shares of vested restricted stock units that have been deferred pursuant to the terms of a deferral election.
|
(9)
|
Includes 19,227 shares of common stock held of record by The Derek Yung and Jill Yung 2014 Trust. Also includes 62,864 shares of common stock issuable upon exercise of stock options.
|
(10)
|
Includes 44,419 shares of common stock held of record by Michael D. Goldberg Family Trust dated June 3, 2011. Also includes 34,217 shares of vested restricted stock units that have been deferred pursuant to the terms of a deferral election.
|
(11)
|
Includes 21,047 shares of vested restricted stock units that have been deferred pursuant to the terms of a deferral election.
|
(12)
|
Includes an aggregate of 373,882 shares of common stock issuable upon exercise of stock options, 375 shares of common stock issuable upon vesting of restricted stock units and 678,071 shares of vested restricted stock units that have been deferred pursuant to the terms of a deferral election.
|
•
|
The amounts involved exceeded or will exceed $120,000; and
|
•
|
A director, executive officer, holder of more than 5% of our common stock or any member of any such person’s immediate family had or will have a direct or indirect material interest.
|
Scott N. Flanders
|
Chief Executive Officer
|
Derek N. Yung
|
Senior Vice President, Chief Financial Officer
|
David K. Francis
|
Chief Operating Officer
|
Timothy J. Hannan
|
Chief Revenue Officer
|
Robert S. Hurley
|
Former President, Carrier and Business Development
|
•
|
Total revenue was $506.2 million, a growth of 101% compared to 2018;*
|
•
|
Adjusted EBITDA** was $133.2 million, a growth of 295% compared to 2018, and GAAP net income was $66.9 million;*
|
•
|
Medicare commission revenue growth of 115% driven primarily by strong growth in approved Medicare members;
|
•
|
A 44% increase in revenue in our Individual, Family and Small Business segment compared to 2018. The segment continued to be profitable for the full year 2019;
|
•
|
Growing the percentage of applications for major medical Medicare products, including Medicare Advantage and Medicare Supplement plans, submitted online; and
|
•
|
Significant investment in Medicare-related marketing and telesales resources.
|
*
|
Our 2019 revenue, adjusted EBITDA and GAAP net income include the positive impact of $42.3 million in revenue related to the change in estimate in expected cash commission collections for Medicare Advantage plans since we began selling such products through the third quarter of 2019.
|
**
|
Adjusted EBITDA is calculated by
adding stock-based compensation, depreciation and amortization expense, acquisition costs, restructuring charge, amortization of intangible assets, change in fair value of earnout liability, other income, net and provision for income taxes to GAAP net income.
A reconciliation between adjusted EBITDA and GAAP net income is included in Appendix A to this proxy statement.
|
•
|
In 2019, tying 100% of the equity awards granted to the chief executive officer to achieving certain levels of stock price performance as well as long-term revenue and adjusted EBITDA goals;
|
•
|
In 2019, tying approximately 92% of the equity awards granted to the chief financial officer, 90% of the equity awards granted to the chief operating officer and 86% of the equity awards granted to the other Named Executive Officers, to achieving certain levels of stock price performance as well as long-term revenue and adjusted EBITDA goals;
|
•
|
Linking pay to performance by, for example, tying bonus payouts under the 2019 executive bonus program to our financial performance and each recipient’s individual performance;
|
•
|
Maintaining stock ownership guidelines for executive officers and non-employee directors;
|
•
|
Prohibiting all employees, including our Named Executive Officers, from hedging their company common stock pursuant to our insider trading policy;
|
•
|
Prohibiting all employees, including our Named Executive Officers from pledging company common stock as collateral for loans, pursuant to our insider trading policy;
|
•
|
Providing no golden parachute excise tax gross-ups;
|
•
|
Generally restricting our executive officers to be eligible to receive only the same benefits and perquisites as our other U.S.-based salaried employees;
|
•
|
Conducting an annual Say-on-Pay advisory vote as a means to receive feedback from stockholders on our executive compensation program; and
|
•
|
Engaging Radford to perform a risk analysis with respect to our compensation programs and policies, including for non-executive officers.
|
Compensation Components
|
||||||
Objective
|
Base
Salary |
Annual
Incentives |
Equity Awards
|
|||
Attract, motivate and retain talented and dedicated executive officers
|
•
|
•
|
•
|
|||
Directly link compensation to measurable corporate and individual performance
|
•
|
•
|
||||
Focus executive officers on achieving near- and long-term corporate objectives and strategy
|
•
|
•
|
||||
Reward executives for creating stockholder value
|
•
|
Peer Group Companies
|
||
Benefitfocus, Inc.
|
Liquidity Services, Inc.
|
|
Blucora, Inc.
|
LivePerson, Inc.
|
|
BrightCove Inc.
|
MINDBODY, Inc.*
|
|
Carbonite, Inc.
|
Petmed Express, Inc.
|
|
Care.com, Inc.
|
QuinStreet, Inc.
|
|
Castlight Health, Inc.*
|
Quotient Technology, Inc.
|
|
Chegg, Inc.
|
ServiceSource International, Inc.*
|
|
DHI Group, Inc.
|
TechTarget, Inc.
|
|
Health Insurance Innovations, Inc.*
|
TrueCar, Inc.
|
|
Instructure, Inc.*
|
XO Group Inc.
|
|
Limelight Networks, Inc.
|
||
* New in 2019
|
•
|
Recruitment, retention and historical factors.
The compensation committee reviews existing Named Executive Officer compensation and retention levels relative to estimated replacement cost with respect to the scope, responsibilities and skills required of the particular position.
|
•
|
Lack of directly comparable data for some of our key roles.
Compensation data for some of our key positions are not explicitly reported by companies in our compensation peer group or survey data. This results in limited sample sizes and/or inconclusive data that can be misleading if targeting a specific percentile for market positioning.
|
•
|
Market positioning may be distorted by the source of the data.
Certain elements of compensation reported from one source can be consistently higher or lower than the data collected from another, given differences in methods and samples used by each source to collect market data. Given this variability and volatility within the market data, the compensation committee has determined that targeting pay levels at specific percentiles of this data could result in outcomes that do not align with the internal value and strategic importance of various roles at the company.
|
Name
|
2018 Base Salary
|
2019 Base Salary
|
Percentage Change
|
|||||||
Scott N. Flanders
|
$
|
600,000
|
|
$
|
600,000
|
|
—
|
|||
Derek N. Yung
|
$
|
350,000
|
|
$
|
375,000
|
|
7%
|
|||
David K. Francis
|
$
|
400,000
|
|
$
|
450,000
|
|
13%
|
|||
Timothy C. Hannan
|
$
|
300,000
|
|
$
|
325,000
|
|
8%
|
|||
Robert S. Hurley
|
$
|
325,000
|
|
$
|
325,000
|
|
—
|
Metric
|
Threshold
|
Target
|
Maximum
|
|||||
GAAP Annual Revenue
|
$
|
291,000,000
|
|
$300,000,000
|
$324,000,000
|
|||
Adjusted EBITDA
|
$
|
45,125,000
|
|
$47,500,000
|
$57,475,000
|
Name
|
Fiscal 2019 Cash Bonus Award Opportunity
|
|||||||
Target
|
Maximum
|
|||||||
Percent of Base
Salary
|
Amount
|
Percent of Base Salary
|
Amount
|
|||||
Scott N. Flanders
|
125%
|
$750,000
|
187.5%
|
$1,125,000
|
||||
Derek N. Yung
|
60%
|
$225,000
|
90%
|
$337,500
|
||||
David K. Francis
|
60%
|
$270,000
|
90%
|
$405,000
|
||||
Timothy C. Hannan
|
60%
|
$195,000
|
90%
|
$292,500
|
||||
Robert S. Hurley
|
60%
|
$195,000
|
90%
|
$292,500
|
Metric
|
Target Goal
|
2019 Company
Achievement |
Achieved Payout
Percentage Relative to Target |
||||||||
GAAP Annual Revenue
|
$
|
300,000,000
|
|
$
|
506,201,000
|
|
150
|
%
|
|||
Adjusted EBITDA
|
$
|
47,500,000
|
|
$
|
133,228,000
|
|
150
|
%
|
Name
|
According to Payout
Formula
|
Actual Payout
|
Percent
|
|||
Scott N. Flanders
|
$1,125,000
|
$1,125,000
|
100.0%
|
|||
Derek N. Yung
|
$337,500
|
$337,500
|
100.0%
|
|||
David K. Francis
|
$405,000
|
$405,000
|
100.0%
|
|||
Timothy C. Hannan
|
$292,500
|
$300,000
|
102.6%
|
|||
Robert S. Hurley
|
$292,500
|
$300,000
|
102.6%
|
Stock Price from Price Threshold
|
Percentage of Award
Eligible to Vest |
Percentage Increase from
Award Approval Date to Achieve Price Threshold |
||
$75.00
|
33.3%
|
29%
|
||
$81.00
|
33.3%
|
40%
|
||
$90.00
|
33.0%
|
55%
|
Revenue Threshold
|
Adjusted EBITDA Margin Threshold
|
Percentage of Award
Eligible to Vest |
Percentage Increase in
Revenue from 2018 to Achieve Threshold |
Percentage Increase in
Adjusted EBITDA Margin from 2018 to Achieve Threshold |
||||
$500 million
|
> 20%
|
75%
|
99%
|
88%
|
||||
$550 million
|
>20%
|
25%
|
119%
|
88%
|
Name
|
RSUs
|
Stock Price PSUs
|
Revenue/Adjusted EBITDA PSUs
|
|||
Scott N. Flanders
|
—
|
90,000
|
45,000
|
|||
Derek N. Yung
|
5,000
|
15,000
|
45,000
|
|||
David K. Francis
|
8,000
|
27,000
|
45,000
|
|||
Timothy C. Hannan
|
8,500
|
8,350
|
45,000
|
|||
Robert S. Hurley
|
8,500
|
8,350
|
45,000
|
•
|
Overall pay mix, among base salary, variable cash and long-term incentives, was aligned with the practices of our peers;
|
•
|
Incentive plans are well-aligned with compensation design principles that generally follow best practices;
|
•
|
Management incentives are capped and require a threshold level of performance that help protect against overpayment in a challenging business environment;
|
•
|
Severance benefits are closely managed and are not excessive; and
|
•
|
Share retention guidelines established for executive officers and non-employee directors generally follow best practices.
|
Compensation Committee
|
|
Dale B. Wolf (Chairperson)
|
|
Andrea C. Brimmer
|
|
Jack L. Oliver, III
|
Name and Principal Position
|
Year
|
Salary
(1)
|
Stock
Awards (2)(3) |
Option
Awards (2)(3) |
Non-Equity
Incentive Plan Compensation (4) |
All Other
Compensation |
Total
|
|||||||||||||||
Scott N. Flanders
|
2019
|
$
|
600,000
|
|
$
|
8,064,027
|
|
(5)
|
$
|
—
|
|
$
|
1,125,000
|
|
$
|
9,092
|
|
(6)
|
$
|
9,798,119
|
|
|
Chief Executive Officer
|
2018
|
$
|
600,000
|
|
$
|
2,064,856
|
|
$
|
—
|
|
$
|
828,000
|
|
$
|
5,500
|
|
$
|
3,498,356
|
|
|||
2017
|
$
|
600,000
|
|
$
|
1,531,500
|
|
$
|
600,091
|
|
$
|
—
|
|
$
|
2,700
|
|
$
|
2,734,291
|
|
||||
Derek N. Yung
|
2019
|
$
|
369,271
|
|
$
|
4,004,177
|
|
(7)
|
$
|
—
|
|
$
|
337,500
|
|
$
|
—
|
|
$
|
4,710,948
|
|
||
Senior Vice President, Chief Financial Officer
|
2018
|
$
|
188,462
|
|
$
|
1,158,875
|
|
$
|
1,089,113
|
|
$
|
243,500
|
|
$
|
269
|
|
$
|
2,680,219
|
|
|||
David K. Francis
|
2019
|
$
|
438,461
|
|
$
|
4,902,387
|
|
(8)
|
$
|
—
|
|
$
|
405,000
|
|
$
|
—
|
|
$
|
5,745,848
|
|
||
Chief Operating Officer
|
2018
|
$
|
400,000
|
|
$
|
913,362
|
|
$
|
—
|
|
$
|
395,000
|
|
$
|
18,054
|
|
$
|
1,726,416
|
|
|||
2017
|
$
|
390,769
|
|
$
|
565,400
|
|
$
|
—
|
|
$
|
243,840
|
|
$
|
30,983
|
|
$
|
1,230,992
|
|
||||
Timothy C. Hannan
|
2019
|
$
|
319,213
|
|
$
|
3,852,976
|
|
(9)
|
$
|
—
|
|
$
|
300,000
|
|
$
|
35,094
|
|
(10)
|
$
|
4,507,283
|
|
|
Chief Revenue Officer
|
2018
|
$
|
300,000
|
|
$
|
420,262
|
|
$
|
—
|
|
$
|
352,000
|
|
$
|
37,916
|
|
$
|
1,110,178
|
|
|||
2017
|
$
|
144,231
|
|
$
|
347,625
|
|
$
|
299,188
|
|
$
|
91,440
|
|
$
|
64,164
|
|
$
|
946,648
|
|
||||
Robert S. Hurley
|
2019
|
$
|
325,000
|
|
$
|
3,852,976
|
|
(9)
|
$
|
—
|
|
$
|
300,000
|
|
$
|
8,775
|
|
(6)
|
$
|
4,486,751
|
|
|
Former President, Carrier and Business Development
|
2018
|
$
|
325,000
|
|
$
|
420,262
|
|
$
|
—
|
|
$
|
137,963
|
|
$
|
5,250
|
|
$
|
888,475
|
|
|||
2017
|
$
|
313,508
|
|
$
|
312,900
|
|
$
|
—
|
|
$
|
211,770
|
|
$
|
2,650
|
|
$
|
840,828
|
|
(1)
|
Salary includes base salary including payment in respect of accrued paid-time-off and holidays.
|
(2)
|
Amounts were based on the grant date fair value computed in accordance with FASB ASC Topic 718. Our accounting policies regarding equity compensation and the assumptions used to calculate the value of our equity awards are set forth in Notes 1 and 5 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019.
|
(3)
|
For more information regarding our Named Executive Officers’ long-term equity incentives granted in 2019, see “
Executive Compensation, Say-on-Pay, Independence of Advisors—Compensation Discussion and Analysis—Compensation Elements.”
|
(4)
|
Amounts are performance-based cash bonus awards earned and approved by the compensation committee for their respective fiscal years.
|
(5)
|
Amount represents the grant date fair value of 135,000 PSUs granted in 2019.
|
(6)
|
Amount represents 401(k) matching contributions.
|
(7)
|
Amount represents the grant date fair value of 60,000 PSUs and 5,000 RSUs granted in 2019.
|
(8)
|
Amount represents the grant date fair value of 72,000 PSUs and 8,000 RSUs granted in 2019.
|
(9)
|
Amount represents the grant date fair value of 53,500 PSUs and 8,500 RSUs granted in 2019.
|
(10)
|
Amount represents travel reimbursements of $26,319 as approved by the compensation committee and 401(k) matching contributions of $8,775.
|
Name
|
Grant Date
|
Approval
Date |
Estimated Future Payouts
Under Non-Equity Incentive Plan Awards (1) |
Estimated Future Payouts
Under Equity Incentive Plan Awards (2) |
All Other
Stock Awards: Number of Shares of Stock or Units (#) (3) |
All Other
Stock Awards: Number of Securities Underlying Options (#) |
Exercise
or Base Price of Option Awards ($ per Share) |
Grant
Date Fair Value of Stock and Option Awards ($) (4) |
||||||||||||||
Threshold
($) |
Target
($) |
Maximum
($) |
Threshold
(#) |
Target
(#) |
Maximum
(#) |
|||||||||||||||||
Scott N. Flanders
|
4/16/2019
|
3/6/2019
|
30,000
|
|
90,000
|
|
90,000
|
|
$
|
5,264,400
|
|
|||||||||||
4/16/2019
|
3/6/2019
|
21,874
|
|
29,166
|
|
29,166
|
|
$
|
1,908,331
|
|
||||||||||||
10/15/2019
|
9/12/2019
|
11,875
|
|
15,834
|
|
15,834
|
|
$
|
891,296
|
|
||||||||||||
3/6/2019
|
3/6/2019
|
$
|
750,000
|
|
$
|
1,125,000
|
|
|||||||||||||||
Derek N. Yung
|
4/16/2019
|
3/6/2019
|
5,000
|
|
$
|
327,150
|
|
|||||||||||||||
4/16/2019
|
3/6/2019
|
5,000
|
|
15,000
|
|
15,000
|
|
$
|
877,400
|
|
||||||||||||
4/16/2019
|
3/6/2019
|
21,874
|
|
29,166
|
|
29,166
|
|
$
|
1,908,331
|
|
||||||||||||
10/15/2019
|
9/12/2019
|
11,875
|
|
15,834
|
|
15,834
|
|
$
|
891,296
|
|
||||||||||||
3/6/2019
|
3/6/2019
|
$
|
225,000
|
|
$
|
337,500
|
|
|||||||||||||||
David K. Francis
|
4/16/2019
|
3/6/2019
|
8,000
|
|
$
|
523,440
|
|
|||||||||||||||
4/16/2019
|
3/6/2019
|
9,000
|
|
27,000
|
|
27,000
|
|
$
|
1,579,320
|
|
||||||||||||
4/16/2019
|
3/6/2019
|
21,874
|
|
29,166
|
|
29,166
|
|
$
|
1,908,331
|
|
||||||||||||
10/15/2019
|
9/12/2019
|
11,875
|
|
15,834
|
|
15,834
|
|
$
|
891,296
|
|
||||||||||||
3/6/2019
|
3/6/2019
|
$
|
270,000
|
|
$
|
405,000
|
|
|||||||||||||||
Timothy C. Hannan
|
4/16/2019
|
3/6/2019
|
8,500
|
|
$
|
556,155
|
|
|||||||||||||||
4/16/2019
|
3/6/2019
|
2,833
|
|
8,500
|
|
8,500
|
|
$
|
497,194
|
|
||||||||||||
4/16/2019
|
3/6/2019
|
21,874
|
|
29,166
|
|
29,166
|
|
$
|
891,296
|
|
||||||||||||
10/15/2019
|
9/12/2019
|
11,875
|
|
15,834
|
|
15,834
|
|
$
|
1,908,331
|
|
||||||||||||
3/6/2019
|
3/6/2019
|
$
|
195,000
|
|
$
|
292,500
|
|
|||||||||||||||
Robert S. Hurley
|
4/16/2019
|
3/6/2019
|
8,500
|
|
$
|
556,155
|
|
|||||||||||||||
4/16/2019
|
3/6/2019
|
2,833
|
|
8,500
|
|
8,500
|
|
$
|
497,194
|
|
||||||||||||
4/16/2019
|
3/6/2019
|
21,874
|
|
29,166
|
|
29,166
|
|
$
|
891,296
|
|
||||||||||||
10/15/2019
|
9/12/2019
|
11,875
|
|
15,834
|
|
15,834
|
|
$
|
1,908,331
|
|
||||||||||||
3/6/2019
|
3/6/2019
|
$
|
195,000
|
|
$
|
292,500
|
|
(1)
|
Represents target and maximum cash bonus payouts under the 2019 executive bonus program as described in
Executive Compensation, Say-on-Pay, Independence of Advisors—Compensation Discussion and Analysis—Annual Cash Bonus Awards
. The actual bonus amounts paid to each Named Executive Officer are disclosed in the Summary Compensation Table set forth above.
|
(2)
|
Represents performance-based restricted stock units granted in 2019.
|
(3)
|
Represents time-based restricted stock units granted in 2019.
|
(4)
|
Amounts shown reflect the grant date fair value of restricted stock and option awards (both time-based and performance-based) granted in 2019, computed in accordance with FASB ASC Topic 718. Our accounting policies regarding equity compensation and the assumptions used to compute the fair value of our equity awards are set forth in Notes 1 and 5 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019.
|
|
|
Option Awards
|
Stock Awards
|
||||||||||||||
Name
|
Grant
Date |
Number of Securities
Underlying Unexercised Options |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
Option
Exercise Price ($) |
Option
Expiration Date |
Number of
Shares or Units of Stock That Have Not Vested (#) |
Market
Value of Shares or Units of Stock That Have Not Vested ($) (1) |
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (1) |
||||||||
Vested
(#) |
Unexercisable
(#) |
||||||||||||||||
Scott N. Flanders
|
6/3/2016
|
(2)
|
134,373
|
|
15,627
|
|
13.58
|
|
6/3/2023
|
||||||||
6/3/2016
|
(3)
|
150,000
|
|
—
|
|
13.58
|
|
6/3/2023
|
|||||||||
6/3/2016
|
(4)
|
25,000
|
|
$
|
2,402,000
|
|
|||||||||||
4/18/2017
|
(5)
|
12,500
|
|
$
|
1,201,000
|
|
|||||||||||
4/16/2019
|
(3)
|
90,000
|
|
$
|
8,647,200
|
|
|||||||||||
4/16/2019
|
(6)
|
29,166
|
|
$
|
2,802,269
|
|
|||||||||||
10/15/2019
|
(6)
|
15,834
|
|
$
|
1,521,331
|
|
|||||||||||
Derek N. Yung
|
7/17/2018
|
(3)
|
42,500
|
|
—
|
|
23.99
|
|
7/17/2025
|
||||||||
7/17/2018
|
(7)
|
15,937
|
|
26,563
|
|
23.99
|
|
7/17/2025
|
|||||||||
7/17/2018
|
(8)
|
18,750
|
|
$
|
1,801,500
|
|
|||||||||||
4/16/2019
|
(3)
|
15,000
|
|
$
|
1,441,200
|
|
|||||||||||
4/16/2019
|
(9)
|
5,000
|
|
$
|
480,400
|
|
|||||||||||
4/16/2019
|
(6)
|
29,166
|
|
$
|
2,802,269
|
|
|||||||||||
10/15/2019
|
(6)
|
15,834
|
|
$
|
1,521,331
|
|
|||||||||||
David K. Francis
|
8/16/2016
|
(10)
|
18,750
|
|
$
|
1,801,500
|
|
||||||||||
4/18/2017
|
(5)
|
7,500
|
|
$
|
720,600
|
|
|||||||||||
4/17/2018
|
(11)
|
11,250
|
|
$
|
1,080,900
|
|
|||||||||||
4/16/2019
|
(3)
|
27,000
|
|
$
|
2,594,160
|
|
|||||||||||
4/16/2019
|
(9)
|
8,000
|
|
$
|
768,640
|
|
|||||||||||
4/16/2019
|
(6)
|
29,166
|
|
$
|
2,802,269
|
|
|||||||||||
10/15/2019
|
(6)
|
15,834
|
|
$
|
1,521,331
|
|
|||||||||||
Timothy C. Hannan
|
7/18/2017
|
(12)
|
1,874
|
|
5,626
|
|
18.60
|
|
7/18/2024
|
||||||||
7/18/2017
|
(3)
|
7,500
|
|
—
|
|
18.60
|
|
7/18/2024
|
|||||||||
7/18/2017
|
(13)
|
5,000
|
|
$
|
480,400
|
|
|||||||||||
4/17/2018
|
(11)
|
11,250
|
|
$
|
1,080,900
|
|
|||||||||||
4/16/2019
|
(3)
|
8,500
|
|
$
|
816,680
|
|
|||||||||||
4/16/2019
|
(9)
|
8,500
|
|
$
|
816,680
|
|
|||||||||||
4/16/2019
|
(6)
|
29,166
|
|
$
|
2,802,269
|
|
|||||||||||
10/15/2019
|
(6)
|
15,834
|
|
$
|
1,521,331
|
|
|||||||||||
Robert S. Hurley
|
4/19/2016
|
(14)
|
1,250
|
|
$
|
120,100
|
|
||||||||||
8/16/2016
|
(15)
|
5,000
|
|
$
|
480,400
|
|
|||||||||||
4/18/2017
|
(5)
|
7,500
|
|
$
|
720,600
|
|
|||||||||||
4/17/2018
|
(11)
|
11,250
|
|
$
|
1,080,900
|
|
|||||||||||
4/16/2019
|
(3)
|
8,500
|
|
$
|
816,680
|
|
|||||||||||
4/16/2019
|
(9)
|
8,500
|
|
$
|
816,680
|
|
|||||||||||
4/16/2019
|
(6)
|
29,166
|
|
$
|
2,802,269
|
|
|||||||||||
10/15/2019
|
(6)
|
15,834
|
|
$
|
1,521,331
|
|
(1)
|
The market value of restricted stock unit awards that have not vested is calculated by multiplying the number of units that have not vested by the closing price of our common stock on December 31, 2019, which was $96.08.
|
(2)
|
The option vests as to 25% of the shares one year after May 31, 2016 and 1/48th of the shares upon completion of each month of continuous service thereafter..
|
(3)
|
The number of shares shown is based upon achieving maximum stock price performance goals as of December 31, 2019. Upon achievement of one or more of the stock price thresholds, the percentage that becomes eligible to vest would vest on the one-year anniversary of achieving the applicable stock price threshold, subject to the executive officer's continuing to provide services to us through the vesting date. As of December 31, 2019 all stock price thresholds have been met and 100% of the shares have become eligible for time-based vesting.
|
(4)
|
25% of the shares subject to the restricted stock units vest on each anniversary of the vesting start date of May 31, 2016, subject to the executive officer’s continued service with us.
|
(5)
|
25% of the shares subject to the restricted stock units vest on each anniversary of the vesting start date of March 31, 2017, subject to the executive officer’s continued service with us.
|
(6)
|
The number of shares shown is based upon achieving target revenue and adjusted EBIDTA margin performance goals over 4 fiscal quarters. Upon achievement of the performance thresholds, the percentage that becomes eligible to vest would vest June 30, 2022, subject to the executive continuing to provide services to us through the vesting date. As of December 31, 2019, none of the performance goals has been met.
|
(7)
|
The option vests as to 25% of the shares one year after June 4, 2018 and 1/48th of the shares upon completion of each month of continuous service thereafter.
|
(8)
|
25% of the shares subject to the restricted stock units vest on each anniversary of the vesting start date of June 4, 2018, subject to the executive officer’s continued service with us.
|
(9)
|
25% of the shares subject to the restricted stock units vest on each anniversary of the vesting start date of March 30, 2019, subject to the executive officer’s continued service with us.
|
(10)
|
25% of the shares subject to the restricted stock units vest on each anniversary of the vesting start date of July 11, 2016, subject to the executive officer’s continued service with us.
|
(11)
|
25% of the shares subject to the restricted stock units vest on each anniversary of the vesting start date of March 30, 2018, subject to the executive officer’s continued service with us.
|
(12)
|
The option vests 25% of the shares one year after June 26, 2017 and 1/48th of the shares upon completion of each month of continuous service thereafter.
|
(13)
|
25% of the shares subject to the restricted stock units vest on each anniversary of the vesting start date of June 26, 2017, subject to the executive officer’s continued service with us.
|
(14)
|
25% of the shares subject to the restricted stock units vest on each anniversary of the vesting start date of March 9, 2016, subject to the executive officer’s continuous service thereafter.
|
(15)
|
25% of the shares subject to the restricted stock units vest on each anniversary of the vesting start date of March 31, 2016, subject to the executive officer’s continued service with us.
|
Option Awards
|
Stock Awards
|
||||||||||||||
Name
|
Number of Shares
Acquired on Exercise |
Value Realized
on Exercise (1) |
Number of Shares
Acquired on Vesting |
Value Realized
on Vesting (2) |
|||||||||||
Scott N. Flanders
|
102,766
|
|
$
|
9,320,864
|
|
221,250
|
|
(3)
|
$
|
20,297,738
|
|
||||
Derek N. Yung
|
—
|
|
—
|
|
31,250
|
|
$
|
2,600,188
|
|
||||||
David K. Francis
|
—
|
|
—
|
|
110,000
|
|
(4)
|
$
|
9,370,188
|
|
|||||
Timothy C. Hannan
|
15,000
|
|
$
|
1,270,068
|
|
26,250
|
|
$
|
2,141,838
|
|
|||||
Robert S. Hurley
|
—
|
|
—
|
|
43,750
|
|
(5)
|
$
|
3,399,344
|
|
(1)
|
The value realized equals the difference between the option exercise price and the fair market value of the company's common stock on the date of exercise, multiplied by the number of shares for which the option was exercised.
|
(2)
|
The value realized equals the fair market value of the company’s common stock on the date of vesting, multiplied by the number of shares of stock that have vested.
|
(3)
|
175,566 shares that vested in 2019 were deferred pursuant to the terms of a deferral election.
|
(4)
|
69,611 shares that vested in 2019 were deferred pursuant to the terms of a deferral election.
|
(5)
|
20,650 shares that vested in 2019 were deferred pursuant to the terms of a deferral election.
|
Name
|
Executive Contributions
in 2019 (1) |
Company Contributions in 2019
|
Aggregate Earnings
in 2019 (2) |
Aggregate
Withdrawal/ Distributions in 2019 |
Aggregate
Balance at 12/31/2019 (3) |
|||||||||||||
Scott N. Flanders
|
$
|
16,156,839
|
|
—
|
|
$
|
20,259,452
|
|
—
|
|
$
|
42,479,274
|
|
|||||
David K. Francis
|
$
|
5,868,139
|
|
—
|
|
$
|
2,688,135
|
|
—
|
|
$
|
9,800,352
|
|
|||||
Robert S. Hurley
|
$
|
1,476,828
|
|
—
|
|
$
|
3,322,935
|
|
—
|
|
$
|
6,675,927
|
|
(1)
|
The reported dollar values are calculated by multiplying the number of deferred restricted stock units that vested in 2019 by the closing price of our common stock on the date the respective restricted stock units vested.
|
(2)
|
Reflects earnings on shares deferred upon the vesting of restricted stock units, which consisted solely of stock price appreciation of the Named Executive Officer’s deferred restricted stock units during 2019.
|
(3)
|
Amount represents the cumulative value of the Named Executive Officer’s deferral activities, including earnings and withdrawals thereon as of December 31, 2019. The reported dollar values are calculated by multiplying the number of deferred restricted stock units held by the Named Executive Officer as of December 31, 2019 by the closing price of our common stock on December 31, 2019.
|
Plan Category
|
Number of
securities to be issued upon exercise of outstanding options and rights (a) |
Weighted-
average exercise price of outstanding options (b) |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
(c) |
||||||||
Equity compensation plans approved by security
holders (1) |
2,849,775
|
|
$
|
19.57
|
|
2,196,610
|
|
(2)
|
|||
Equity compensation plans not approved by security holders
|
—
|
|
—
|
|
—
|
|
|||||
Total
|
2,849,775
|
|
$
|
19.57
|
|
2,196,610
|
|
(1)
|
Consists of the 2006 Equity Incentive Plan and the 2014 Equity Incentive Plan. Our board of directors determined not to grant any additional equity awards under the 2006 Equity Incentive Plan following the approval of the 2014 Equity Incentive Plan by our stockholders in June 2014.
|
(2)
|
A total of 7,000,000 shares of our common stock are authorized and reserved for issuance under the 2014 Equity Incentive Plan, as amended.
|
Audit Committee
|
|
Randall S. Livingston (Chairperson)
|
|
Beth A. Brooke
|
|
Michael D. Goldberg
|
|
Fiscal Years Ended
|
|||||||
|
2018
|
2019
|
||||||
Audit fees
(1)
|
$
|
2,895
|
|
$
|
3,129
|
|
||
Audit-related fees
(2)
|
196
|
|
—
|
|
||||
Tax fees
(3)
|
—
|
|
132
|
|
||||
All other fees
(4)
|
2
|
|
4
|
|
||||
$
|
3,093
|
|
$
|
3,265
|
|
(1)
|
Audit fees: These fees consist of professional services rendered for the audit of our annual consolidated financial statements and internal control over financial reporting, review of our quarterly consolidated financial statements, accounting advice and consultations, as well as accounting advice and services that are normally provided by Ernst & Young LLP in connection with regulatory filings or engagements.
|
(2)
|
Audit-related fees: These consist of fees billed by Ernst & Young LLP for assurance and related services that are reasonably related to the performance of the audit or review of our consolidated financial statements and are not reported under “Audit Fees.”
|
(3)
|
Tax fees: These fees consist of professional services rendered for tax compliance.
|
(4)
|
All other fees: These fees consist of services not captured in the audit, audit-related or tax categories, including fees relating to accounting research software.
|
•
|
the consummation of a sale or other disposition of all or substantially all, as determined by the Board of Directors in its sole discretion, of the consolidated assets of the Company and its subsidiaries;
|
•
|
the consummation of a sale or other disposition of at least 50% of our outstanding securities; or
|
•
|
the consummation of certain specified types of mergers, consolidations or similar transactions.
|
By Order of the Board of Directors,
|
|
Scott N. Flanders
Chief Executive Officer and Director
|
|
Year Ended December 31,
|
|||||||
|
2019
|
2018
|
||||||
GAAP net income
|
$
|
66,887
|
|
$
|
241
|
|
||
Stock-based compensation expense
|
22,570
|
|
12,289
|
|
||||
Depreciation and amortization
|
2,983
|
|
2,479
|
|
||||
Acquisition costs
|
—
|
|
76
|
|
||||
Restructuring charge
|
—
|
|
1,865
|
|
||||
Amortization of intangible assets
|
2,187
|
|
2,091
|
|
||||
Change in fair value of earnout liability
|
24,079
|
|
12,300
|
|
||||
Other income, net
|
(2,090
|
)
|
(755
|
)
|
||||
Provision for income taxes
|
16,612
|
|
3,065
|
|
||||
Adjusted EBITDA
|
$
|
133,228
|
|
$
|
33,651
|
|
1.
|
General; Purpose.
|
10.
|
Death of Participant.
|
11.
|
Adjustments upon Changes in Common Stock; Corporate Transactions.
|
13.
|
Tax Qualification; Tax Withholding.
|
15.
|
Miscellaneous Provisions.
|