SAH 2019 Proxy Statement

&RPSHQVDWLRQ &RPPLWWHH RQ WKH GHVLJQ RI D ORQJ WHUP LQFHQWLYH SODQ IRU (FKR3DUN $XWRPRWLYH ,QF D VXEVLGLDU\ RI WKH &RPSDQ\ DQG WR SURYLGH UHODWHG VHUYLFHV ZKLFK HQJDJHPHQW HQGHG GXULQJ $OWKRXJK 6RQLF TXDOLILHV DV D ³FRQWUROOHG FRPSDQ\´ IRU SXUSRVHV RI WKH 1<6( UXOHV DQG WKHUHIRUH LV QRW UHTXLUHG WR FRPSO\ ZLWK DOO RI WKH UHTXLUHPHQWV RI WKRVH UXOHV WKH &RPSHQVDWLRQ &RPPLWWHH KDV DVVHVVHG :LOOLV 7RZHUV :DWVRQ¶V LQGHSHQGHQFH DV D FRPSHQVDWLRQ FRQVXOWDQW E\ UHIHUHQFH WR WKH 1<6( UXOHV ,Q FRQQHFWLRQ ZLWK LWV HQJDJHPHQW RI :LOOLV 7RZHUV :DWVRQ LQ 0D\ WKH &RPSHQVDWLRQ &RPPLWWHH FRQVLGHUHG YDULRXV IDFWRUV EHDULQJ XSRQ :LOOLV 7RZHUV :DWVRQ¶V LQGHSHQGHQFH LQFOXGLQJ EXW QRW OLPLWHG WR :LOOLV 7RZHUV :DWVRQ¶V SROLFLHV DQG SURFHGXUHV GHVLJQHG WR SUHYHQW FRQIOLFWV RI LQWHUHVW DQG WKH H[LVWHQFH RI DQ\ EXVLQHVV RU SHUVRQDO UHODWLRQVKLS WKDW FRXOG LPSDFW :LOOLV 7RZHUV :DWVRQ¶V LQGHSHQGHQFH 7KH &RPSHQVDWLRQ &RPPLWWHH UHTXHVWHG DQG UHFHLYHG DQ LQGHSHQGHQFH OHWWHU IURP :LOOLV 7RZHUV :DWVRQ DVVHVVLQJ WKH LQGHSHQGHQFH IDFWRUV WKDW DUH LGHQWLILHG LQ WKH 6(& UXOHV $IWHU UHYLHZLQJ WKHVH DQG RWKHU IDFWRUV LQFOXGLQJ WKH 1<6( OLVWLQJ VWDQGDUGV IRU FRPSHQVDWLRQ FRQVXOWDQWV WKH &RPSHQVDWLRQ &RPPLWWHH GHWHUPLQHG WKDW :LOOLV 7RZHUV :DWVRQ ZDV LQGHSHQGHQW RI WKH &RPSDQ\¶V PDQDJHPHQW DQG WKDW LWV HQJDJHPHQW GLG QRW UDLVH DQ\ FRQIOLFWV RI LQWHUHVW $QQXDO &DVK &RPSHQVDWLRQ $QQXDO FDVK FRPSHQVDWLRQ IRU 6RQLF¶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¶V H[HFXWLYHV LQ FRPSDULVRQ WR RWKHU FRPSDQLHV Base Salary for 2018 7KH EDVH VDODULHV RI 6RQLF¶V 1DPHG ([HFXWLYH 2IILFHUV DQG DGMXVWPHQWV WR VXFK H[HFXWLYH RIILFHUV¶ EDVH VDODULHV DUH JHQHUDOO\ EDVHG XSRQ DQ HYDOXDWLRQ RI HDFK H[HFXWLYH¶V SHUIRUPDQFH E\ WKH &RPSHQVDWLRQ &RPPLWWHH H[HFXWLYH FRPSHQVDWLRQ RI FRPSDUDEOH FRPSDQLHV DQG PDQDJHPHQW¶V UHFRPPHQGDWLRQV 7KH &RPSHQVDWLRQ &RPPLWWHH¶V HYDOXDWLRQ LV EDVHG XSRQ QRQ TXDQWLWDWLYH IDFWRUV VXFK DV WKH FXUUHQW UHVSRQVLELOLWLHV RI HDFK H[HFXWLYH RIILFHU WKH FRPSHQVDWLRQ RI VLPLODUO\ VLWXDWHG H[HFXWLYH RIILFHUV RI FRPSDUDEOH FRPSDQLHV WKH SHUIRUPDQFH RI HDFK H[HFXWLYH RIILFHU GXULQJ WKH SULRU FDOHQGDU \HDU LQFOXGLQJ VXEMHFWLYH HYDOXDWLRQV RI HDFK H[HFXWLYH RIILFHU¶V SHUIRUPDQFH GXULQJ WKH SULRU FDOHQGDU \HDU DQG VXEMHFWLYH DQG REMHFWLYH HYDOXDWLRQV RI WKH SHUIRUPDQFH RI EXVLQHVV XQLWV DQG IXQFWLRQV XQGHU WKH SDUWLFXODU H[HFXWLYH RIILFHU¶V VXSHUYLVLRQ DQG WKH &RPSDQ\¶V RSHUDWLQJ DQG ILQDQFLDO SHUIRUPDQFH GXULQJ WKH SULRU FDOHQGDU \HDU *LYLQJ FRQVLGHUDWLRQ WR WKHVH IDFWRUV DQG PDQDJHPHQW¶V UHFRPPHQGDWLRQV WKH &RPSHQVDWLRQ &RPPLWWHH DSSURYHG EDVH VDODU\ LQFUHDVHV HIIHFWLYH 0DUFK IRU WKH IROORZLQJ H[HFXWLYH RIILFHUV LQ WKH IROORZLQJ DPRXQWV 0U 2 %UXWRQ 6PLWK IURP WR 0U % 6FRWW 6PLWK IURP WR 0U 'DYLG %UXWRQ 6PLWK IURP WR 0U -HII '\NH IURP WR DQG 0U +HDWK 5 %\UG IURP WR 7KH EDVH VDODU\ LQFUHDVH IRU 0U 'DYLG %UXWRQ 6PLWK DOVR FRQVLGHUHG WKH H[SDQVLRQ RI KLV UHVSRQVLELOLWLHV LQ FRQQHFWLRQ ZLWK KLV SURPRWLRQ WR WKH SRVLWLRQ RI ([HFXWLYH 9LFH &KDLUPDQ DQG &KLHI 6WUDWHJLF 2IILFHU