Income that may be part of your gross income but is not identified as taxable income would include child support, proceeds from life insurance policies, inheritances, workers compensation payments, welfare benefits,
compensation awarded as a result of physical injury, education scholarships or grants, and income paid to your retirement account (either a 401k or IRA, up to a certain amount).
Not exact matches
One thing that hasn't changed is the payment mix, which still skews heavily toward «other» — non-salary payments such
as cash bonuses, share and options
awards, pension contributions and other
compensation.
They supplement base pay to provide competitive
compensation, can act
as a recognition tool to
award employees for satisfactory work, and they help ensure that employees» interests are aligned with shareholders.
With stock
awards and options, equity
compensation programs can serve
as additional ways to pay workers beyond wages or salaries.
Represents share - based
compensation expense associated with equity
awards for the periods indicated; also includes the portion of annual non-cash incentive
compensation expense that eligible employees elected to receive or are expected to elect to receive
as common equity in lieu of their 2017 and 2018 cash bonus, respectively.
The Plan permits grants of the following types of incentive
awards subject to such terms and conditions
as the Leadership Development and
Compensation Committee shall determine, consistent with the terms of the Plan: (1) stock options, including stock options intended to qualify
as ISOs, (2) other stock - based
awards, including in the form of stock appreciation rights, phantom stock, restricted stock, restricted stock units, performance shares, deferred share units or share - denominated performance units, and (3) cash
awards.
The Leadership Development and
Compensation Committee offered Larry and Sergey cash
awards in recognition of their performance in 2014, but
as in previous years, they declined to receive cash bonuses.
The performance goals upon which the payment or vesting of any Incentive
Award (other than Options and stock appreciation rights) that is intended to qualify
as Performance - Based
Compensation depends shall relate to one or more of the following Performance Measures: market price of Capital Stock, earnings per share of Capital Stock, income, net income or profit (before or after taxes), economic profit, operating income, operating margin, profit margin, gross margins, return on equity or stockholder equity, total shareholder return, market capitalization, enterprise value, cash flow (including but not limited to operating cash flow and free cash flow), cash position, return on assets or net assets, return on capital, return on invested
For example, the
Compensation Committee retained Compensia, Inc., a national compensation consulting firm («Compensia»), as its compensation consultant in 2017 to advise the Compensation Committee with respect to the 2018 CEO Perfor
Compensation Committee retained Compensia, Inc., a national
compensation consulting firm («Compensia»), as its compensation consultant in 2017 to advise the Compensation Committee with respect to the 2018 CEO Perfor
compensation consulting firm («Compensia»),
as its
compensation consultant in 2017 to advise the Compensation Committee with respect to the 2018 CEO Perfor
compensation consultant in 2017 to advise the
Compensation Committee with respect to the 2018 CEO Perfor
Compensation Committee with respect to the 2018 CEO Performance
Award.
Other than periodic incentive plans that were historically provided to Mr. McNeill based on the achievement of specific customer - related metrics, including
as set forth under the «Non-Equity Incentive Plan
Compensation» column in «Executive
Compensation — Summary
Compensation Table» below, we do not currently have or have planned any specific arrangements with our named executive officers providing for cash - based bonus
awards.
As described under «Item 4 — Approve the Amended and Restated Long - Term Incentive
Compensation Plan» on page 88 of this proxy statement, the Board is proposing to amend the LTICP to permit grants of equity
awards to non-employee directors.
(l) Except
as otherwise set forth in Schedule 2.7 (l) of the Disclosure Schedule, (i) the Company is not and will not be obligated to pay separation, severance, termination or similar benefits
as a result of any of the transactions contemplated by this Agreement, nor will any such transactions accelerate the time of payment or vesting, or increase the amount, of any benefit or other
compensation due to any individual; and (ii) the transactions contemplated by this Agreement will not cause the Company to record additional
compensation expense on its income statements with respect to any outstanding Stock Option or other equity - based
award.
In August 2012, to create incentives for continued long - term success from the then - recently launched Model S program
as well
as from Tesla's then - planned Model X and Model 3 programs, and to further align executive
compensation with increases in stockholder value, the Board granted to Mr. Musk a stock option
award to purchase 5,274,901 shares of Tesla's common stock (the «2012 CEO Performance Award»), representing 5 % of Tesla's total issued and outstanding shares at the time of g
award to purchase 5,274,901 shares of Tesla's common stock (the «2012 CEO Performance
Award»), representing 5 % of Tesla's total issued and outstanding shares at the time of g
Award»), representing 5 % of Tesla's total issued and outstanding shares at the time of grant.
These new rules are effective starting in 2018 for us, except that certain equity
awards (such
as stock options) that we granted on or before November 2, 2017, might still be able qualify
as performance - based
compensation.
Jarden's executives» cash bonuses and equity
awards are tied to meeting specific «adjusted EPS» criteria, which is the same
as reported EPS except that it removes certain expenses, including stock
compensation associated with restricted stock.
The following table sets forth the 2010
compensation for our independent directors
as determined by SEC rules, which require us to include equity
awards granted during 2010.
To the extent that in 2018 or any later year, the aggregate amount of any covered officer's salary, bonus, and amount realized from option exercises and vesting of restricted stock units or other equity
awards, and certain other
compensation amounts that are recognized
as taxable income by the officer exceeds $ 1,000,000 in any year, we will not be entitled to a U.S. federal income tax deduction for the amount over $ 1,000,000 in that year.
As of June 30, 2015, there was $ 178.6 million of total unrecognized
compensation cost related to outstanding stock options and restricted stock
awards that is expected to be recognized over a weighted average period of 3.51 years.
As discussed in the CD&A under «
Compensation Components» and «Achieving Compensation Objectives — Pay for Performance,» we have provided incentive compensation in the form of an annual cash incentive award based on Company, business line and individual qualitative performance results for each fiscal year, and long - term incentive compensation generally in the form of stock option grants and, in certain circumstances, RSRs to reward our SEOs for contribution to growth in long - term stockh
Compensation Components» and «Achieving
Compensation Objectives — Pay for Performance,» we have provided incentive compensation in the form of an annual cash incentive award based on Company, business line and individual qualitative performance results for each fiscal year, and long - term incentive compensation generally in the form of stock option grants and, in certain circumstances, RSRs to reward our SEOs for contribution to growth in long - term stockh
Compensation Objectives — Pay for Performance,» we have provided incentive
compensation in the form of an annual cash incentive award based on Company, business line and individual qualitative performance results for each fiscal year, and long - term incentive compensation generally in the form of stock option grants and, in certain circumstances, RSRs to reward our SEOs for contribution to growth in long - term stockh
compensation in the form of an annual cash incentive
award based on Company, business line and individual qualitative performance results for each fiscal year, and long - term incentive
compensation generally in the form of stock option grants and, in certain circumstances, RSRs to reward our SEOs for contribution to growth in long - term stockh
compensation generally in the form of stock option grants and, in certain circumstances, RSRs to reward our SEOs for contribution to growth in long - term stockholder value.
Under the Bonus Plan, our
compensation committee, in its sole discretion, determines the performance goals applicable to
awards, which goals may include, without limitation: attainment of research and development milestones, sales bookings, business divestitures and acquisitions, cash flow, cash position, earnings (which may include any calculation of earnings, including but not limited to earnings before interest and taxes, earnings before taxes, earnings before interest, taxes, depreciation and amortization and net earnings), earnings per share, net income, net profit, net sales, operating cash flow, operating expenses, operating income, operating margin, overhead or other expense reduction, product defect measures, product release timelines, productivity, profit, return on assets, return on capital, return on equity, return on investment, return on sales, revenue, revenue growth, sales results, sales growth, stock price, time to market, total stockholder return, working capital, and individual objectives such
as MBOs, peer reviews, or other subjective or objective criteria.
As of September 30, 2015, there was $ 228.5 million of total unrecognized
compensation cost related to outstanding stock options and restricted stock
awards that is expected to be recognized over a weighted average period of 3.18 years.
A portion of these
awards is generally subject to continued post-acquisition employment, and this portion has been accounted for
as post-acquisition share - based
compensation expense.
The following table provides information on
awards granted under the PfR Plan for fiscal 2010 and
awards of PRUs and
awards of restricted stock units («RSUs») granted
as part of fiscal 2010 long - term incentive
compensation:
As of December 31, 2014, there was $ 177.9 million of total unrecognized
compensation cost related to outstanding stock options and restricted stock
awards that is expected to be recognized over a weighted average period of 2.86 years.
As of December 31, 2014, there was $ 177.9 million of total unrecognized
compensation expense related to outstanding stock options and restricted stock
awards that is expected to be recognized over a weighted average period of 2.86 years.
As of September 30, 2015, there was $ 228.5 million of total unrecognized
compensation expense related to outstanding stock options and restricted stock
awards that is expected to be recognized over a weighted average period of 3.18 years.
Stockholders should review the information in the Summary
Compensation Table and the Grants of Plan - Based
Awards table,
as well
as the additional tables that follow, in conjunction with our CD&A.
In addition, pursuant to our outside director equity
compensation policy, in the event of the termination of a non-employee director's service to the Board
as a result of death, disability or retirement, all of the non-employee director's equity
compensation awards will become fully vested, provided that the non-employee director served
as a member of the Board for at least three years prior to the date of termination and the non-employee director satisfied our equity ownership guidelines during his or her service
as a Board member.
Our
compensation committee may
award restricted shares of our common stock and restricted stock units to participants subject to such conditions and restrictions
as it may determine.
Our
compensation committee may
award stock appreciation rights subject to such conditions and restrictions
as it may determine.
As in 2010, the HRC
awarded named executives a combination of
compensation composed of a high percentage of performance - based pay, predominantly in long - term equity
compensation.
The Company may, to the extent permitted by applicable law, deduct from and set off against any amounts the Company may owe to the Participant from time to time (including amounts payable in connection with any Incentive
Award, owed
as wages, fringe benefits, or other
compensation owed to the Participant), such amounts
as may be owed by the Participant to the Company, although the Participant shall remain liable for any part of the Participant's payment obligation not satisfied through such deduction and setoff.
It is the intent of the Company that Options and stock appreciation rights granted to Covered Employees and other Incentive
Awards designated
as Incentive
Awards to Covered Employees subject to Section 8 shall constitute qualified «performance - based
compensation» within the meaning of Code Section 162 (m) and regulations thereunder, unless otherwise determined by the Committee at the time of allocation of an Incentive
Award.
on a pro forma basis, giving effect to (i) the automatic conversion of all of our outstanding shares of convertible preferred stock other than Series FP preferred stock into shares of Class B common stock and the conversion of Series FP preferred stock into shares of Class C common stock in connection with our initial public offering, (ii) stock - based
compensation expense of approximately $ 1.1 billion associated with outstanding RSUs subject to a performance condition for which the service - based vesting condition was satisfied
as of December 31, 2016 and which we will recognize on the effectiveness of our registration statement in connection with a qualifying initial public offering,
as further described in Note 1 to our consolidated financial statements included elsewhere in this prospectus, (iii) the increase in accrued expenses and other current liabilities and an equivalent decrease in additional paid - in capital of $ 187.2 million in connection with the withholding tax obligations, based on $ 16.33 per share, which is the fair value of our common stock
as of December 31, 2016,
as we intend to issue shares of Class A common stock and Class B common stock on a net basis to satisfy the associated withholding tax obligations, (iv) the net issuance of 7.6 million shares of Class A common stock and 5.5 million shares of Class B common stock that will vest and be issued from the settlement of such RSUs, (v) the issuance of the CEO
award,
as described below, and (vi) the filing and effectiveness of our amended and restated certificate of incorporation which will be in effect on the completion of this offering.
The table above does not include (i) 5,952,917 shares of Class A common stock reserved for issuance under our 2015 Incentive
Award Plan (
as described in «Executive
Compensation — New Employment Agreements and Incentive Plans»), consisting of (x) 2,689,486 shares of Class A common stock issuable upon exercise of options to purchase shares of Class A common stock granted on the date of this prospectus to our directors and certain employees, including the named executive officers, in connection with this offering
as described in «Executive
Compensation — Director
Compensation» and «Executive
Compensation — New Equity
Awards,» and (y) 3,263,431 additional shares of Class A common stock reserved for future issuance and (ii) 24,269,792 shares of Class A common stock issuable to the Continuing SSE Equity Owners upon redemption or exchange of their LLC Interests
as described in «Certain Relationships and Related Party Transactions — SSE Holdings LLC Agreement.»
As a result of changes to the tax laws, we expect that equity
awards granted or other
compensation provided under arrangements entered into or materially modified on or after November 2, 2017 generally will not be deductible to the extent they result in
compensation to certain of our named executive officers for or after 2017 that exceeds $ 1 million in any one year for any such officer.
The pro forma consolidated balance sheet data gives effect to (i) the automatic conversion of all of our outstanding shares of convertible preferred stock other than Series FP preferred stock into shares of Class B common stock and the conversion of Series FP preferred stock into shares of Class C common stock in connection with our initial public offering, (ii) stock - based
compensation expense of approximately $ 1.1 billion associated with outstanding RSUs subject to a performance condition for which the service - based vesting condition was satisfied
as of December 31, 2016 and which we will recognize on the effectiveness of our registration statement in connection with this offering,
as further described in Note 1 to our consolidated financial statements included elsewhere in this prospectus, (iii) the increase in accrued expenses and other current liabilities and an equivalent decrease in additional paid - in capital of $ 187.2 million in connection with the withholding tax obligations, based on $ 16.33 per share, which is the fair value of our common stock
as of December 31, 2016,
as we intend to issue shares of Class A common stock and Class B common stock on a net basis to satisfy the associated withholding tax obligations, (iv) the net issuance of 7.6 million shares of Class A common stock and 5.5 million shares of Class B common stock that will vest and be issued from the settlement of such RSUs, (v) the issuance of the CEO
award,
as described below, and (vi) the filing and effectiveness of our amended and restated certificate of incorporation which will be in effect on the completion of this offering.
The number of shares of our Class A common stock outstanding after this offering
as shown in the tables above is based on the number of shares outstanding
as of September 24, 2014, after giving effect to the Transactions and the Assumed Redemption, and excludes 5,952,917 shares of Class A common stock reserved for issuance under our 2015 Incentive
Award Plan (
as described in «Executive
Compensation — New Employment Agreements and Incentive Plans»), consisting of (i) 2,689,486 shares of Class A common stock issuable upon the exercise of options to purchase shares of Class A common stock granted on the date of this prospectus to our directors and certain employees, including the named executive officers, in connection with this offering
as described in «Executive
Compensation --
For equity
awards granted prior to recent tax law changes, these conditions were intended to qualify the stock - based
awards as tax - deductible
compensation under Section 162 (m)(4)(c) of the Internal Revenue Code.
The number of shares of our Class A common stock outstanding after this offering
as shown in the tables above is based on the number of shares outstanding
as of September 24, 2014, after giving effect to the Transactions and the Assumed Redemption, and excludes shares of Class A common stock reserved for issuance under our 2015 Incentive
Award Plan (
as described in «Executive
Compensation — New Employment Agreements and Incentive Plans»), consisting of (i) shares of Class A common stock issuable upon the exercise of options to purchase shares of Class A common stock granted on the date of this prospectus to our directors and certain employees, including the named executive officers, in connection with this offering
as described
Tillerson was paid $ 27.3 million in salary, bonus, stock
awards and other
compensation in 2015; his 2.6 million shares of Exxon common stock had a value of about $ 228 million
as of early December.
To permit eligible
compensation to qualify
as «performance - based
compensation» under Section 162 (m) of the Code, the HRC Committee sets the overall funding target for the «umbrella» structure for the annual bonuses, and sets performance goals for annual bonuses and equity
awards within the first 90 days of the fiscal year.
In the event of a change of control (
as defined in the plan), the
compensation committee may, in its discretion, provide for any or all of the following actions: (i)
awards may be continued, assumed, or substituted with new rights, (ii)
awards may be purchased for cash equal to the excess (if any) of the highest price per share of common stock paid in the change in control transaction over the aggregate exercise price of such
awards, (iii) outstanding and unexercised stock options and stock appreciation rights may be terminated, prior to the change in control (in which case holders of such unvested
awards would be given notice and the opportunity to exercise such
awards), or (iv) vesting or lapse of restrictions may be accelerated.
As of November 11, 2013, a total of 20.873 million shares of the Company's common stock were subject to all outstanding awards granted under the Company's equity compensation plans (including the shares then subject to outstanding awards under the 2003 Plan and the Director Plan, as well as outstanding awards assumed by the Company in connection with acquisitions, but exclusive of shares that employees may purchase under the Employee Stock Purchase Plan), of which 17.265 million shares were then subject to outstanding restricted stock unit awards and 3.608 million shares were then subject to outstanding stock option
As of November 11, 2013, a total of 20.873 million shares of the Company's common stock were subject to all outstanding
awards granted under the Company's equity
compensation plans (including the shares then subject to outstanding
awards under the 2003 Plan and the Director Plan,
as well as outstanding awards assumed by the Company in connection with acquisitions, but exclusive of shares that employees may purchase under the Employee Stock Purchase Plan), of which 17.265 million shares were then subject to outstanding restricted stock unit awards and 3.608 million shares were then subject to outstanding stock option
as well
as outstanding awards assumed by the Company in connection with acquisitions, but exclusive of shares that employees may purchase under the Employee Stock Purchase Plan), of which 17.265 million shares were then subject to outstanding restricted stock unit awards and 3.608 million shares were then subject to outstanding stock option
as outstanding
awards assumed by the Company in connection with acquisitions, but exclusive of shares that employees may purchase under the Employee Stock Purchase Plan), of which 17.265 million shares were then subject to outstanding restricted stock unit
awards and 3.608 million shares were then subject to outstanding stock options.
Adjusted EBITDA is defined
as net income / (loss) from continuing operations before interest expense, other expense / (income), net, provision for / (benefit from) income taxes; in addition to these adjustments, the Company excludes, when they occur, the impacts of depreciation and amortization (excluding integration and restructuring expenses)(including amortization of postretirement benefit plans prior service credits), integration and restructuring expenses, merger costs, unrealized losses / (gains) on commodity hedges, impairment losses, losses / (gains) on the sale of a business, nonmonetary currency devaluation (e.g., remeasurement gains and losses), and equity
award compensation expense (excluding integration and restructuring expenses).
The Company subsequently supplemented this policy with an overlapping clawback policy that requires all executive officers,
as well
as the next 20 most highly compensated employees, to forfeit previously
awarded compensation if the payments were based on materially inaccurate financial statements or any other criteria that are later proven to be materially inaccurate.
The HRC chose to grant Performance Share
awards as long - term incentive
compensation because the HRC believes the Performance Share
awards closely align management interests with stockholders» interests.
As in previous years, at the request of Mr. Smith and in light of his significant stock ownership, the
Compensation Committee did not
award him any restricted stock.
Adding to high profitability, Lear Corp's executive
compensation plan recognizes the importance of ROIC,
as two - thirds of long - term incentive
awards are tied to achieving a target ROIC.
As surveillance over executive
compensation escalates, Bloomberg reported that Six Flags Entertainment Corp (NYSE: SIX) and Tempur Sealy International Inc (NYSE: TPX) have «
awarded millions of dollars in stock to top bosses and given the equity a unique value: zero.»