Chief Executive Officer: 5x Base Salary
Executive Vice President: 3x Base Salary
Senior Vice President: 2x Base Salary
Vice President: 1x Salary
The following shares/interests will be included in calculating stock ownership level:
The following shares/interests will not be included in calculating stock ownership level:
Outstanding shares of common stock
Unexercised, vested in-the-money stock options to be calculated on the day before of the anniversary date of the plan year
Any other vested grants or account balances under share-based company compensation plans
Employee stock purchase plan shares
Unvested stock options
Progress towards satisfaction of the applicable stock ownership level will be assessed annually the day before the anniversary on April 24 (each, a “Measurement Date”).
Shares of the company’s common stock will be valued based on the closing price on the day before the Measurement Date.
Vested stock options and performance based stock options will be valued based on the Retention Percentage (as defined in Implementation Rule 2) of the estimated “net after-tax” value of such shares.
“Net after-tax” means after payment of any exercise or purchase price and after satisfaction of tax withholding and other tax obligations (or a good faith estimate thereof).
Newly hired and newly promoted executives are expected to accumulate the applicable stock ownership level within five years from the date of hire, promotion or initial election, as applicable. Executives serving on the date of initial adoption of these guidelines are expected to accumulate the applicable stock ownership level by April 24, 2024 During his or her phase-in period, each executive can specify which of his or her holdings will be included in the calculation made on each Measurement Date.
Until the first Measurement Date as of which an executive has accumulated shares/interests that satisfy the applicable stock ownership level, he or she is expected to retain at least 80% of the net after-tax shares actually received upon the exercise or vesting of any equity award granted by the company as compensation (other than any awards that are granted in lieu of cash compensation otherwise earned). An executive may commit to a higher Retention Percentage with respect to any particular equity grant. The retention percentage with respect to any particular equity grant is referred to as the “Retention Percentage” for such award.
Following the first Measurement Date as of which an executive has accumulated shares/interests that satisfy the applicable stock ownership level (such shares/interests, the “Qualifying Shares”), he or she:
The Board or the Compensation Committee may grant exceptions to these guidelines based on an executive’s specific individual circumstances as it deems appropriate.
The Board reserves the right to amend or terminate these guidelines as it deems appropriate. The Board delegates to the Compensation Committee the authority to administer and interpret these guidelines.