def14a
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
(RULE 14a-101)
SCHEDULE 14A INFORMATION
Filed by the Registrant þ
Filed by a Party other than the Registrant o
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Preliminary Proxy Statement |
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
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Definitive Proxy Statement |
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Definitive Additional Materials |
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Soliciting Material Pursuant to §240.14a-12 |
STANDARD PARKING CORPORATION
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
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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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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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NOTICE OF ANNUAL MEETING
AND
PROXY STATEMENT
2011
STANDARD PARKING CORPORATION
STANDARD PARKING CORPORATION
900 North Michigan Avenue, Suite 1600
Chicago, Illinois 60611
NOTICE OF ANNUAL MEETING OF
STOCKHOLDERS
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Date:
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April 29, 2011
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Time:
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8:30 a.m., local time
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Place:
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The Whitehall Hotel
105 East Delaware Place
Chicago, Illinois 60611
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Proposals:
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1. To elect five directors, with the following being the
boards nominees:
Charles L. Biggs
Karen M. Garrison
Robert S. Roath
Michael J. Roberts
James A. Wilhelm
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2. To consider an advisory vote on compensation of our
named executive officers;
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3. To consider an advisory vote on the frequency of the
advisory vote on compensation of our named executive officers;
and
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4. To ratify the appointment of Ernst & Young LLP as
our independent registered public accounting firm for fiscal
year 2011.
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Record Date:
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March 11, 2011
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Voting Methods:
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Written ballot Complete and return proxy card in the
mail In person Attend and vote at the meeting
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Stockholders will also transact any other business properly
brought before the meeting. At this time, our board of directors
knows of no other proposals or matters to be presented.
The board of directors recommends a vote FOR items 1, 2,
and 4, and a vote of ONE YEAR for item 3. The
persons named as proxies will use their discretion to vote on
other matters that may properly arise at the meeting.
Only stockholders of record at the close of business on
March 11, 2011 will be entitled to notice of, and to vote
at, any meeting or any adjournments or postponements thereof. A
list of stockholders entitled to vote at the meeting will be
available for inspection at our headquarters for at least
10 days prior to the meeting, and will also be available
for inspection at the meeting.
On behalf of the board of directors:
Robert N. Sacks,
Executive Vice President, General Counsel and Secretary
Chicago, April 5, 2011
Important
Notice Regarding the Availability of
Proxy Materials for the Shareholder
Meeting to be Held on April 29, 2011
The
proxy statement and annual report to shareholders are available
at
http://www.cstproxy.com/standardparking/2011.
YOUR VOTE IS IMPORTANT!
Please vote as promptly as possible by signing, dating and
returning the enclosed proxy card.
STANDARD
PARKING CORPORATION
900 North Michigan Avenue, Suite 1600
Chicago, Illinois 60611
PROXY STATEMENT
2011
ANNUAL MEETING OF STOCKHOLDERS
TABLE OF
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iii
GENERAL
INFORMATION
The board of directors (the board) of Standard
Parking Corporation is soliciting your proxy for use at the 2011
Annual Meeting of Stockholders (the Annual Meeting)
to be held on April 29, 2011. Under rules adopted by the
Securities and Exchange Commission (the SEC), we are
now furnishing proxy materials on the Internet at
www.cstproxy.com/standardparking/2011 in addition to
mailing paper copies of the materials. These proxy materials are
first being mailed and made available via the Internet on or
about April 5, 2011, to holders of our common stock, par
value $0.001 per share, of record at the close of business on
March 11, 2011.
A copy of our Annual Report to Stockholders, which includes our
Form 10-K
for the year ended December 31, 2010, accompanies this
proxy statement and will be posted on the Internet with this
proxy statement. Stockholders may obtain a copy of the exhibits
to our
Form 10-K
by making a written request to our Investor Relations Team at
Standard Parking Corporation, Investor Relations, 900 North
Michigan Avenue, Suite 1600, Chicago, Illinois 60611, or by
email at investor_relations@standardparking.com.
We are one of the largest and most diversified providers of
outsourced parking facility management services in the United
States and Canada. Our services include a comprehensive set of
on-site
parking management and ground transportation services, and we
also provide a range of ancillary services such as airport
shuttle operations, taxi and livery dispatch services and
municipal meter revenue collection and enforcement. As of
December 31, 2010, we managed approximately 2,100 parking
facility locations containing over one million parking spaces in
approximately 341 cities, operated 25 parking-related
service centers serving 64 airports, operated a fleet of
approximately 540 shuttle buses and employed a professional
staff of approximately 12,000 people.
Our website address is www.standardparking.com. We make
available free of charge on the Investor Relations section of
our website our Annual Report on
Form 10-K,
Quarterly Reports on
Form 10-Q,
Current Reports on
Form 8-K
and all amendments to those reports as soon as reasonably
practicable after such material is electronically filed with or
furnished to the SEC. We also make available through our website
other reports filed with or furnished to the SEC under the
Exchange Act, including our proxy statements and reports filed
by officers and directors under Section 16(a) of that Act,
as well as our Senior Executive Officer Stock Ownership
Guidelines, Governance Guidelines for the Board of Directors,
Code of Business Conduct, Code of Ethics for Certain Executives,
Related-Party Transaction Approval Policy, Whistleblower Policy
and the charters of each of the boards committees. We do
not intend for information made available through our website to
be part of this proxy statement.
You also may read and copy any materials we file with the SEC at
the SECs Public Reference Room at 100 F Street,
N.E., Room 1580, Washington, D.C., 20549, at
prescribed rates. You may obtain information on the operation of
the Public Reference Room by calling the SEC at
1-800-SEC-0330.
The SEC also maintains an Internet site that contains reports,
proxy statements and other information regarding issuers, like
us, that file electronically with the SEC. The address of that
web site is www.sec.gov.
Our headquarters is located at 900 North Michigan Avenue,
Suite 1600, Chicago, Illinois 60611. Our telephone number
in Chicago is
312-274-2000.
You may contact our Investor Relations Team at this address or
by email at investor_relations@standardparking.com.
We use the terms Standard Parking, the
Company, we, our and
us in this proxy statement to refer to Standard
Parking Corporation and its consolidated subsidiaries, unless
the context otherwise requires.
ABOUT THE
ANNUAL MEETING
Date,
Time and Place of the Annual Meeting
We will hold the Annual Meeting at 8:30 a.m., local time,
on April 29, 2011, at The Whitehall Hotel, 105 East
Delaware Place, Chicago, Illinois 60611, subject to any
adjournments or postponements.
1
Who Can
Vote; Votes Per Share
The board has set March 11, 2011 as the record date for the
Annual Meeting. All persons who were registered holders of our
common stock at the close of business on that date are
stockholders of record for the purposes of the Annual Meeting
and will be entitled to vote at the Annual Meeting. As of the
close of business on March 11, 2011, there were
15,785,045 shares of common stock outstanding.
Each stockholder of record will be entitled to one vote per
share of common stock on each matter submitted to a vote of
stockholders, so long as those votes are represented at the
Annual Meeting, either in person or by proxy. Your shares will
be represented if you attend and vote at the Annual Meeting or
if you submit a proxy.
How to
Vote; Submitting Your Proxy; Revoking Your Proxy
You may vote your shares by voting in person at the Annual
Meeting or by submitting a completed proxy. By submitting your
proxy, you are legally authorizing another person to vote your
shares. The proxy designates Robert N. Sacks and Jerome L. Pate
to vote your shares in accordance with the voting instructions
you indicate in your proxy.
If you submit your proxy designating Robert N. Sacks and Jerome
L. Pate as the individuals authorized to vote your shares, but
you do not indicate how your shares are to be voted, then your
shares will be voted by those individuals in accordance with the
boards recommendations, which are described in this proxy
statement. In addition, if any other matters are properly
brought up at the Annual Meeting (other than the proposals
contained in this proxy statement), then Robert N. Sacks and
Jerome L. Pate will have the authority to vote your shares on
those matters in accordance with their discretion and judgment.
The board currently does not know of any matters to be raised at
the Annual Meeting other than the proposals contained in this
proxy statement.
You may submit your proxy by mailing us a proxy card. Please let
us know whether you plan to attend the Annual Meeting by marking
the appropriate box on your proxy card. In order for your proxy
to be validly submitted and for your shares to be voted in
accordance with your proxy, we must receive your mailed proxy by
12:00 p.m., local time, on April 27, 2011.
Once you have submitted your proxy, you may revoke your proxy
before it is voted at the Annual Meeting by submitting a
later-dated vote, in person at the Annual Meeting. Attendance at
the Annual Meeting will not revoke a proxy unless the
stockholder actually votes in person at the meeting.
Your vote is very important to us. If you do not plan to attend
the Annual Meeting, we encourage you to read this proxy
statement and submit your completed proxy card prior to the
Annual Meeting so that your shares will be represented and voted
in accordance with your instructions.
If your shares are not registered in your name but in the
street name of a bank, broker or other holder of
record (a nominee), then your name will not appear
in our register of stockholders. Those shares are held in your
nominees name, on your behalf, and your nominee will be
entitled to vote your shares, except with respect to the
election of directors. Please note that brokers are now
prohibited from voting the shares of retail shareholders in
either contested or uncontested director elections unless the
broker has instructions from the retail shareholder about how to
vote. Accordingly, if your shares are held in street
name, you must instruct your nominee how to vote your
shares in the election of directors for your shares to be voted.
The rule permits brokers to cast votes in the brokers
discretion for our other routine proposals on behalf of
street name shareholders who do not return the proxy
card to the broker within 10 days prior to the Annual
Meeting.
In order for you to attend the Annual Meeting, you must bring a
letter or account statement showing that you beneficially own
the shares held by the nominee. Note that even if you attend the
Annual Meeting, you cannot vote the shares that are held by your
nominee. Rather, you should instruct your nominee how to vote
those shares on your behalf.
2
No
Dissenters Rights of Appraisal or Director
Opposition
No rights of appraisal or similar rights of dissenters exist
with respect to any matter to be acted upon and the Annual
Meeting. As of the date of this proxy statement, we have not
been informed in writing that any director intends to oppose any
action intended to be taken by us or voted upon at the Annual
Meeting.
Quorum
and Voting Requirements
The holders of shares having a majority of the voting power of
our common stock issued and outstanding and entitled to vote at
the Annual Meeting, represented in person or by proxy, shall
constitute a quorum at the Annual Meeting. For purposes of
determining a quorum, abstentions and broker
non-votes are counted as represented. A
non-vote occurs when a nominee (such as a broker)
holding shares for a beneficial owner abstains from voting on a
particular proposal because the nominee does not have
discretionary voting power for that proposal and has not
received instructions from the beneficial owner on how to vote
those shares.
Under Delaware law and our charter and by-laws, if a quorum
exists at the meeting, the affirmative vote of a plurality of
the votes cast at the meeting is required for the election of
directors (Proposal 1). A properly executed proxy marked
Withhold Authority with respect to the election of
one or more directors will not be voted with respect to the
director or directors indicated, although it will be counted for
purposes of determining whether there is a quorum.
The affirmative vote of the holders of a majority of the shares
represented in person or by proxy and entitled to vote will be
required to: approve, by non-binding vote, executive
compensation (Proposal 2), and ratify the appointment of
our independent registered public accounting firm
(Proposal 4). Abstentions and broker non-votes have the
same effect as votes cast against Proposals 2 and 4.
The frequency of the advisory vote on executive compensation
(Proposal 3) receiving the greatest number of votes
(every one, two or three years) will be considered the frequency
recommended by shareholders. Abstentions and broker non-votes
will therefore have no effect on such vote.
Although the advisory votes on Proposals 2 and 3 are
non-binding, as provided by law, our board will review the
results of the votes and, consistent with our record of
shareowner engagement, will take them into account in making a
determination concerning executive compensation and the
frequency of such advisory votes.
Proxy
Solicitation
We will bear the costs of soliciting proxies from the holders of
our common stock. In addition to the solicitation of proxies by
mail, solicitation may be made by certain of our directors,
officers and selected other employees telephonically,
electronically or by other means of communication. Directors,
officers and employees who help us in the solicitation will not
be specially compensated for those services, but they may be
reimbursed for their
out-of-pocket
expenses incurred in connection with the solicitation. We have
engaged Morrow & Co., LLC to assist us in the
solicitation of proxies. We expect to pay Morrow approximately
$8,000 for these services plus expenses. In addition, brokerage
houses, nominees, fiduciaries and other custodians will be
requested to forward soliciting materials to beneficial owners
and will be reimbursed for their reasonable
out-of-pocket
expenses incurred in sending proxy materials to beneficial
owners. Continental Stock Transfer &
Trust Company, our transfer agent, has agreed to send a
representative to act as our Inspector of Election at the Annual
Meeting and to assist us in tabulating the votes.
2010
Audited Financial Statements
The financial statements for our year ended December 31,
2010 are included in our Annual Report, which is available at
www.cstproxy.com/standardparking/2011 together with this
proxy statement. You may also access these materials through our
website at www.standardparking.com.
3
PROPOSAL NO. 1:
ELECTION OF DIRECTORS
The first proposal scheduled to be voted on at the Annual
Meeting is the election of our directors. Our board currently
consists of five members who are elected annually. On
March 3, 2011, the board set the number of directors to be
elected at our 2011 Annual Meeting at five. The
Nominating & Corporate Governance Committee of our
board has recommended, and our board has nominated, Charles L.
Biggs, Karen M. Garrison, Robert S. Roath, Michael J. Roberts
and James A. Wilhelm to serve as our directors. Each of these
nominees is currently serving as a member of our board. If
elected, all nominees will serve a one-year term until our next
annual meeting. You may cast your vote in favor of electing the
nominees as directors or withhold your vote on one or more
nominees.
OUR BOARD
OF DIRECTORS RECOMMENDS A VOTE FOR EACH OF
THE BOARDS FIVE NOMINEES.
If you submit your proxy designating Robert N. Sacks and Jerome
L. Pate as your proxies but do not indicate how your shares
should be voted, then your shares will be voted in favor of the
election of all of the nominees. If any nominee is unwilling or
unable to serve as a director, then the board will propose
another person in place of that original nominee, and the
individuals designated as your proxies will vote to appoint that
proposed person, unless the board decides to reduce the number
of directors constituting the full board. It is currently
anticipated that all of the nominees will be willing and able to
serve as directors.
BOARD
MATTERS
Nominees
for Director
On March 3, 2011, the board fixed the number of directors
to be elected at our 2011 Annual Meeting at five.
In evaluating these director nominees, the
Nominating & Corporate Governance Committee has
assessed the contribution that the nominees skills and
expertise will make with respect to guiding and overseeing our
strategy and operations. Each of these nominees has a deep
understanding of our business and the time, good judgment and
integrity to effectively carry out their responsibilities as a
director. In addition, each of brings decades of leadership
experience and an understanding of finance to our Company.
Set forth below are the biographies of our five director
nominees as of March 3, 2011.
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Charles L. Biggs |
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Age: 70
Board Committees: Audit (Chair), Nominating & Corporate
Governance |
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Mr. Biggs has served as a director since June 2004.
Mr. Biggs was a consultant for Deloitte Consulting, a
professional services firm that provides assurance and advisory,
tax and management consulting services, from 1968 until his
retirement in November 2002. At Deloitte, he held various
management positions, including National Director of Strategy
Services for Deloittes strategy arm and chairman of
Deloitte/Holt Value Associates. He has served as a director of
Qwest Communications International Inc. since April 2004 and is
a member of their audit committee, governance committee and is
chair of the finance committee. Mr. Biggs also serves on
the boards of the Sherman Fairchild Foundation, the Eisenhower
Medical Center, and the McCallum Theatre. In addition to the
qualifications described in the introductory paragraph, our
board believes that Mr. Biggs experience with finance
and technology consulting is a particularly important attribute
for a Company director. Mr. Biggs earned his B.S. degree in
Industrial Management from Kent State University. |
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Karen M. Garrison |
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Age: 62
Board Committees: Audit, Compensation, Nominating &
Corporate Governance (Chair) |
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Ms. Garrison has served as a director since June 2004. She
was president of Pitney Bowes Business Services from 1999 to
2004. In her 27 years with Pitney Bowes, Ms. Garrison
held a series of positions with increasing responsibilities,
including vice president of operations, and vice president of
finance and chief financial officer. She is also a director and
member of the corporate governance committee and chairperson of
the finance committee of The Kaman Corporation. She is a
director of Tenet Healthcare and is a member of Tenets
audit committee and nominating & governance committee.
In addition to the qualifications described in the introductory
paragraph, our board believes that Ms. Garrisons
experience in the service industry is a particularly important
attribute for a Company director. She received her B.S. degree
in Accounting from Rollins College in 1983 and her M.B.A. degree
from the Florida Institute of Technology in 1986. |
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Robert S. Roath |
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Age: 68
Board Committees: Compensation (Chair), Nominating &
Corporate Governance |
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Mr. Roath has served as a director since June 2004, the
chair of our compensation committee since April 2010 and as
chairman of the board since October 2009. He has been chairman
of the advisory board to L.E.K. Consulting, a shareholder-value
consulting firm, since May 1997. Mr. Roath retired as chief
financial officer of RJR Nabisco, Inc. in April 1997 where he
worked from September 1990. He has been a director of the
InterDigital Communications Corporation since May 1997 and is
chairman of the finance committee and a member of the executive
committee. Mr. Roath is also a member of the advisory board
of the Robert H. Smith School of Business at the University of
Maryland. Previously, Mr. Roath was employed by
Colgate-Palmolive, General Foods, GAF Corporation and Price
Waterhouse & Co. In addition to the qualifications
described in the introductory paragraph, our board believes that
Mr. Roaths experience in strategy and finance is a
particularly important attribute for a Company director. He
received his B.S. degree in Accounting and Economics from the
University of Maryland in 1966 and completed the Amos Tuck
Executive Development program in 1980. |
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Michael J. Roberts |
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Age: 61
Board Committees: Audit, Compensation |
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Mr. Roberts has served as a director since April 2010. He
is the chief executive officer and the founder of Westside
Holdings, LLC, a marketing and brand development company. He is
the former president and chief operating officer of
McDonalds Corporation, and before assuming this position
in November 2004, his previous positions at McDonalds
Corporation included Chief Executive Officer
McDonalds USA during 2004; President
McDonalds USA from 2001 to 2004; and President, West
Division McDonalds USA from 1997 to 2001.
Mr. Roberts has served as a |
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director of W.W. Grainger since 2006 and is a member of the
board affairs and nominating committee and the compensation
committee. Mr. Roberts has also served as a director of
Qwest Communications International Inc. since 2009 and is a
member of the compensation & human resources committee
and nominating & corporate governance committee. He
also serves on the board of directors of the Chicago Council on
Global Affairs. In addition to the qualifications described in
the introductory paragraph, our board believes that
Mr. Roberts broad experience managing a
multi-national corporation with over 30,000 locations that serve
tens of millions of customers is a particularly important
attribute for a Company director. Mr. Roberts received his
B.A. degree in Sociology in 1973 from the Loyola University of
Chicago. |
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James A. Wilhelm |
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Age: 57 |
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Mr. Wilhelm has served as our president since September
2000 and as our Chief Executive Officer and a director since
October 2001. Mr. Wilhelm served as our executive vice
president operations from March 1998 to September
1999, and he served as our senior executive vice president and
chief operations officer from September 1999 to August 2000.
Mr. Wilhelm joined the predecessors of Standard Parking
Corporation in 1985, serving as executive vice president
beginning in January 1998. Prior to March 1998, Mr. Wilhelm
was responsible for managing the Midwest and Western Regions,
which included parking facilities in Chicago and sixteen other
cities throughout the United States and Canada. In addition to
the qualifications described in the introductory paragraph, our
board believes that Mr. Wilhelms experience in the
parking management industry is a particularly important
attribute for a Company director. Mr. Wilhelm received his
B.A. degree from Northeastern Illinois University in 1976. |
Nominations
for Director
Identifying
Candidates
In evaluating candidates for board membership, the
Nominating & Corporate Governance Committee has
assessed the contribution that the candidates skills and
expertise will make with respect to guiding and overseeing our
strategy and operations. This Committee seeks candidates who
have the ability to develop a deep understanding of our business
and the time and the judgment to effectively carry out their
responsibilities as a member of the board.
The Nominating & Corporate Governance Committee
charter provides that this committee should consider candidates
for the board that are gender and age diverse and also possess a
diversity of professional experience, education and other
individual qualities and attributes in an effort to contribute
to board heterogeneity.
All of the boards independent director nominees at the
Annual Meeting have been identified with the assistance of a
professional search firm specializing in this type of work.
Shareholder
Recommendations
If you would like to recommend a future nominee for board
membership, you can submit a written recommendation with the
name and other pertinent information of the nominee to: Karen M.
Garrison, Chair of the Nominating & Corporate
Governance Committee,
c/o Standard
Parking Corporation, 900 North Michigan Avenue, Suite 1600,
Chicago, Illinois 60611, Attention: General Counsel and
Secretary.
6
Criteria
for Board Membership
The Nominating & Corporate Governance Committee has
established certain minimum qualification criteria for our
directors, including:
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The highest personal and professional ethics and integrity, and
values, and a commitment to acting in the best interest of the
shareholders;
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An inquisitive and objective perspective and mature judgment;
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Sufficient time available to fulfill all board and committee
responsibilities;
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Diverse experience at policy-making levels in business,
government, education and technology, and in areas that are
relevant to the Companys activities; and
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Experience in positions with a high degree of responsibility and
leadership roles in the companies or institutions with which
they are affiliated.
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When recommending to the full board the slate of directors
nominated for the election at the annual meeting of
shareholders, the Nominating & Corporate Governance
Committee reviews the qualifications and backgrounds of the
nominees for director. The Nominating & Corporate
Governance Committee may utilize the services of consulting
firms to help identify candidates for director who meet the
qualifications outlined above.
OUR
CORPORATE GOVERNANCE PRACTICES
General
Our business is managed by our employees under the direction and
oversight of the board. Except for Mr. Wilhelm, none of our
directors is an employee of Standard Parking. We keep board
members informed of our business through discussions with
management, materials we provide to them, visits to our offices,
and their participation in board and board committee meetings.
The board has adopted Corporate Governance Guidelines that,
along with the charters of the principal board committees and
our Code of Business Conduct and Ethics, provide the framework
for the governance of the company. A complete copy of our
Corporate Governance Guidelines, the charters of our principal
Board committees, our Code of Business Conduct, Code of Ethics
and other corporate governance documents may be found on our
Investor Relations page at www.standardparking.com.
Information contained on our website is not part of this proxy
statement. The board regularly reviews corporate governance
developments and modifies these policies as warranted. Any
changes in these governance documents will be reflected in the
same location on our website.
We believe that open, effective, and accountable corporate
governance practices are key to our relationship with our
stockholders. To help our stockholders understand our commitment
to this relationship and our governance practices, the board has
adopted a set of Corporate Governance Guidelines to set a
framework within which the board will conduct its business. The
Corporate Governance Guidelines are summarized below along with
certain other of our governance practices.
Committee
Responsibilities
Board committees help the board run effectively and efficiently,
but do not replace the oversight of the board as a whole. There
are currently three principal Board committees: the Audit
Committee, the Compensation Committee, and the
Nominating & Corporate Governance Committee. Each
committee meets regularly and has a written charter that has
been approved by the board. In addition, at each regularly
scheduled board meeting, a member of each committee reports on
any significant matters addressed by the committee since the
last board meeting. Each committee performs an annual
self-assessment to evaluate its effectiveness in fulfilling its
obligations.
7
Director
Independence and Controlled Company Status
Because we were considered a controlled company
under the NASDAQ rules until May 15, 2009, we were exempt
from NASDAQ rules mandating a board of directors to be comprised
of a majority of independent directors and mandating
a compensation committee and nominating committee to be
comprised solely of independent directors. Despite
the controlled company exception, our board has been
comprised of a majority of independent directors since 2004. We
have relied on the NASDAQ controlled company
exception, however, for committee composition requirements. When
a company ceases to be a controlled company, the
NASDAQ rules permit a company to phase in its compliance with
the independent committee requirements. Accordingly, we were
required to have a majority of independent members on our
Compensation Committee and Nominating & Corporate
Governance Committee by August 13, 2009, and all
independent members by May 15, 2010. Our Compensation
Committee and the Nominating & Corporate Governance
Committee had a majority of members who were independent
directors as of June 17, 2009, and these two committees
have been comprised entirely of independent directors since
April 28, 2010. The controlled company
exception does not modify the independence requirements for our
Audit Committee composition; accordingly, our Audit Committee
has been comprised entirely of independent directors since 2004
in compliance with the Sarbanes-Oxley Act and the NASDAQ
independence rules for audit committees.
On March 3, 2011, the board confirmed that a majority of
our director nominees Messrs. Biggs, Roath and
Roberts and Ms. Garrison have no material
relationship with our company that would conflict with the
independence requirements of applicable federal law and the
NASDAQ rules. The board determined that Mr. Wilhelm is not
considered independent because he is our chief executive officer.
Board
Leadership Structure
Pursuant to our by-laws, we have appointed a chairman of the
board to preside at all meetings of the stockholders and of the
board and sees that orders and resolutions of the board are
carried into effect and such other duties as the board from time
to time prescribes. In addition, pursuant to our by-laws, we
have appointed a chief executive officer who serves as our
principal executive officer and, in general, supervises and
controls all of our business and affairs, unless otherwise
provided by the board. The positions of chairman of the board
and the principal executive officer are two different
individuals: Robert S. Roath, an independent director, serves as
the chairman of the board, and James A. Wilhelm serves as the
chief executive officer. We believe that separate individuals in
these two positions promote better corporate governance and more
effective oversight of the principal executive officer by the
board.
Boards
Role in Risk Oversight
Our chief administrative officer, Michael K. Wolf, is the
executive officer with primary
day-to-day
risk oversight responsibility. Mr. Wolf reports to our
Audit Committee about our major risk exposures and the steps
management has taken to monitor and control such exposures,
including our risk assessment and risk management policies.
Although the Audit Committee has a responsibility to discuss the
guidelines and policies governing the process by which risk
assessment and risk management is undertaken, the full board has
primary responsibility for risk oversight. As changes occur to
our Companys risk profile, Mr. Wolf routinely updates
the board with a description of the particular risk, current
risk mitigation efforts and potential risk mitigation efforts.
In addition, at least annually the board determines whether:
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the risk appetite implicit in our business model, strategy, and
execution is appropriate;
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the expected risks are commensurate with the expected rewards;
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management has effectively implemented a system to manage,
monitor, and mitigate risk, and that system is appropriate given
our business model and strategy;
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our risk management system informs the board of the major risks
facing us;
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an appropriate culture of risk-awareness exists throughout our
organization; and
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there is recognition that management of risk is essential to the
successful execution of our strategy.
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8
Attendance
at Annual Meetings
Absent exigent circumstances, all directors are expected to
attend our annual meeting of stockholders. All of our directors
serving on our board at the time of our last annual meeting of
stockholders, which was held in April 2010, attended such
meeting, except for Mr. Roberts who was elected for the
first time at this annual meeting and the two directors who were
not nominated to serve an additional term.
Formal
Closed Sessions
At the conclusion of each regularly scheduled board meeting, the
independent directors have the opportunity to meet without our
management or the other directors. The chairman leads the
discussions.
Board
Compensation
Board compensation is determined by the Compensation Committee.
Since 2004, board compensation has consisted of a mixture of
equity compensation and cash compensation. Board compensation is
reviewed annually by the Compensation Committee. A more detailed
description of current board compensation can be found under the
heading Director Compensation below.
Stock
Ownership Guidelines
In March 2011, our board adopted stock ownership guidelines to
better align the interests of our directors with the interests
of our stockholders and further promote our commitment to sound
corporate governance. Under these guidelines, our directors are
required to achieve ownership of Standard Parking common stock
valued at three times their annual retainer paid to directors
within three years of joining the board, or in the case of
directors serving at the time the guidelines were adopted,
within three years of the date of adoption of the guidelines.
Effective January 2007, in connection with the implementation of
the new performance restricted stock plan for our senior
executive officers, the board adopted stock ownership guidelines
to align the interest of its key executives with the interest of
our stockholders. Subject to limited exceptions, these
guidelines require our key executives to maintain ownership of
at least sixty percent (60%) of the net shares they
acquire from the exercise of stock options or the vesting of
restricted stock or restricted stock units granted under our
Long-Term Incentive Plan after January 2007. Net
shares are deemed to be those shares that remain after any
acquired shares are sold or netted to pay (if applicable) any
associated withholding taxes.
A more detailed summary of our stock ownership guidelines can be
found through our Investor Relations page at
www.standardparking.com. The ownership levels of our
executive officers and directors as of March 1, 2011 are
set forth in the section entitled Security
Ownership Beneficial Ownership of Directors and
Executive Officers below.
Outside
Advisors
The board and each of its principal committees may retain
outside advisors and consultants of their choosing at the
companys expense. The board need not obtain
managements consent to retain outside advisors. In
addition, the principal committees need not obtain either the
boards or managements consent to retain outside
advisors.
Transparency
We believe it is important that stockholders understand our
governance practices. In order to help ensure the transparency
of our practices, we have posted information regarding our
corporate governance policies and practices on our Investor
Relations page at www.standardparking.com.
9
Board
Effectiveness and Director Performance Reviews
It is important that the board and its committees are performing
effectively and in the best interest of the company and our
stockholders. The board performs an annual self-assessment, led
by the chair of the Nominating & Corporate Governance
Committee, to evaluate its effectiveness in fulfilling its
obligations. As part of this annual self-assessment, directors
are able to provide feedback on the performance of other
directors. The chair then follows up on this feedback and takes
such further action with directors receiving comments and other
directors as he or she deems appropriate.
Succession
Planning
The board recognizes the importance of effective executive
leadership to our success, and reviews executive succession
planning at least annually. As part of this process, the board
reviews and discusses the capabilities of our senior leadership,
as well as succession planning and potential successors for
members of our executive staff, including the chief executive
officer. The process includes consideration of organizational
and operational needs, competitive challenges,
leadership/management potential and development, and emergency
situations.
Auditor
Independence
We have taken a number of steps to ensure continued independence
of our outside auditors. Our independent auditors report
directly to the Audit Committee, and we limit the use of our
auditors for non-audit services. The fees for services provided
by our auditors in 2010 and 2009 and our policy on pre-approval
of non-audit services are described under
Proposal No. 4 Ratification of
Independent Registered Public Accounting Firm below.
Communicating
with the Board
The board welcomes your questions and comments. If you would
like to communicate directly with our board, or our independent
directors as a group, then you may submit your communication to
our General Counsel and Secretary, Standard Parking Corporation,
900 North Michigan Avenue, Suite 1600, Chicago, Illinois
60611. All appropriate communications and concerns will be
forwarded to our board or our independent directors as a group,
as applicable.
Corporate
Hotline
We have established a corporate hotline and web-based reporting
application to allow any employee to confidentially and
anonymously lodge a complaint about any accounting, internal
control, auditing, or (where legally permissible) other matters
of concern. A copy of our whistleblower policy is set forth on
the Investor Relations section of our website.
Conflicts
of Interest
We expect our directors, executives, and employees to conduct
themselves with the highest degree of integrity, ethics, and
honesty. Our credibility and reputation depend upon the good
judgment, ethical standards, and personal integrity of each
director, executive, and employee. In order to better protect us
and our stockholders, we regularly review our Code of Business
Conduct, Code of Ethics and related policies to ensure that they
provide clear guidance to our directors, executives, and
employees. In addition, on an annual basis, each director and
executive officer is obligated to complete a director and
officer questionnaire that requires disclosure of any
transaction with us in which the director or executive officer,
or any member of his or her immediate family, have a direct or
indirect material interest.
Related-Party
Transaction Policy
As part of its oversight responsibilities, the charter of our
Audit Committee requires that the Audit Committee review all
related-party transactions for potential conflicts of interest.
On November 2, 2006, the
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board adopted a formal statement of policy for related-party
transactions. The policy requires that the Audit Committee
review all transactions between the Company and our executive
officers, directors, nominees, principal stockholders and other
related persons for potential conflicts involving amounts in
excess of $5,000. This policy is available on the Investor
Relations portion of our website.
Codes of
Conduct and Ethics
We have adopted a code of ethics as part of our compliance
program. The code of ethics applies to our chief executive
officer, chief financial officer and corporate controller. In
addition we have adopted a code of business conduct that applies
to all of our officers and employees. Any amendments to, or
waivers from, our code of ethics will be posted on our website
www.standardparking.com. A copy of these codes of conduct
and ethics will be provided to you without charge upon request
to investor_relations@standardparking.com.
MEETINGS
AND COMMITTEES OF THE BOARD
The
Board
The board expects that its members will diligently prepare for,
attend and participate in all board and applicable committee
meetings, and each annual meeting of stockholders. Directors are
also expected to become familiar with our management team and
operations as a basis for discharging their oversight
responsibilities. All directors attended the 2010 annual meeting
of shareholders except Mr. Roberts who was first elected at
the annual meeting and two directors who did not stand for
reelection. During 2010 the board held nine meetings, five of
which were held by teleconference. Each of the directors who
served during 2010 attended 100% of the board meetings, except
Messrs. Holten and Roberts who each missed one meeting
during their respective terms.
The independent members of the board held two in-person
executive sessions in 2010, which were attended by all of the
independent directors.
Committees
of the Board
The board has three standing committees to facilitate and assist
the board in the execution of its responsibilities. The
committees currently are the Audit Committee, the
Nominating & Corporate Governance Committee and the
Compensation Committee. Each of these committees operates
pursuant to a written charter, which is available in the
Corporate Governance section of our website, accessible through
our Investor Relations page at www.standardparking.com.
In addition, each of the charters is attached to this proxy
statement: the Audit Committee charter is at Appendix A,
the Nominating & Corporate Governance Committee
charter is at Appendix B, and the Compensation Committee
charter is at Appendix C.
Audit
Committee
The Audit Committee has three members: Charles L. Biggs, who
serves as Chair, Karen M. Garrison and Michael J. Roberts. The
board has determined that each of its members meets the
financial literacy and independence requirements of The NASDAQ
Stock Market LLC, and that Ms. Garrison and
Messrs. Biggs and Roberts each qualify as an audit
committee financial expert for purposes of the rules and
regulations of the SEC. We limit the number of public-company
audit committees on which any Audit Committee member may serve
to three. Mr. Biggs currently serves on the audit committee
of Qwest Communications International Inc. and Ms. Garrison
serves on the audit committee of Tenet Healthcare. The board
will continue to monitor and assess the audit committee
memberships of our Audit Committee members on a regular basis.
The Audit Committees primary duties and responsibilities
are to:
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meet with our independent auditors to review the results of the
annual audit and to discuss our financial statements, including
the independent auditors judgment about the quality of
accounting principles, the reasonableness of significant
judgments, the clarity of the disclosures in our financial
statements, our internal control over financial reporting, and
managements report with respect to internal control over
financial reporting;
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meet with our independent auditors to review the interim
financial statements prior to the filing of our Quarterly
Reports on
Form 10-Q;
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recommend to the board the independent auditors to be retained
by us;
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oversee the independence of the independent auditors;
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evaluate the independent auditors performance;
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review and approve the fees of the independent auditors;
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receive and consider the independent auditors comments as
to controls, adequacy of staff and management performance and
procedures in connection with audit and financial controls,
including our system to monitor and manage business risks and
legal and ethical compliance programs;
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approve the Audit Committee Report for inclusion in our proxy
statement;
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approve audit and non-audit services provided to us by our
independent auditors;
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consider conflicts of interest and review all transactions with
related persons involving executive officers or board members
that are reasonably expected to exceed specified
thresholds; and
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meet with our General Counsel to discuss legal matters that may
have a material impact on our financial statements or our
compliance policies and with other members of management to
discuss other areas of risk to the Company.
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The Audit Committee held eight meetings in 2010, five of which
were held by teleconference. Each of the directors who served on
the Audit Committee during 2010 attended 100% of the meetings
except Mr. Roberts was unable to attend two meetings.
Nominating &
Corporate Governance Committee
The Nominating & Corporate Governance Committee
consists of three directors: Charles L. Biggs, Karen M.
Garrison, who serves as Chair, and Robert S. Roath. Our board
has determined that all members of this committee are
independent. Mr. Biggs currently serves as a member of the
corporate governance committee of Qwest Communications
International Inc., and Ms. Garrison currently serves as a
member of the nominating committee of Tenet Healthcare. The
Nominating & Corporate Governance Committees
primary duties and responsibilities are to:
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have general responsibility for board selection, including the
identification of qualified candidates for board membership,
taking into account gender and age diversity as well as
diversity of professional experience, education and other
individual qualities and attributes that will contribute to
board heterogeneity;
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recommend to the board the directors to serve on each committee
of the board;
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develop and recommend to the board for its approval a set of
corporate governance guidelines that it will review at least
annually and recommend any proposed changes to the board for its
approval;
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approve all director search firm engagement fees and
terms; and
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prepare a report to be included in our proxy statement and
provide reports to the board.
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The Nominating & Corporate Governance Committee held
one meeting in 2010. Each of the directors who served on the
Nominating & Corporate Governance Committee during
2010 attended this meeting.
12
Compensation
Committee
The Compensation Committee consists of three directors: Karen M.
Garrison, Robert S. Roath, who serves as Chair, and Michael J.
Roberts. Our board has determined that all members of this
committee are independent. The Compensation Committees
primary duties and responsibilities are to:
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review and discuss with management the Compensation Discussion
and Analysis section of the proxy statement;
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assist in defining a total compensation policy for our
executives that supports our overall business strategy and
objectives; attracts and retains key executives; links total
compensation with business objectives and organizational
performance; and provides competitive total compensation
opportunities at a reasonable cost;
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act on behalf of the board in setting executive compensation
policy, administer compensation plans approved by the board and
stockholders, and make decisions or develop recommendations for
the board with respect to the compensation of key executives;
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review and determine the annual base salary levels, annual
incentive opportunity levels, long-term incentive opportunity
levels, executive perquisites, employment agreements, change in
control and severance provisions/agreements, benefits, and
supplemental benefits of the named executive officers;
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review and approve corporate goals and objectives relevant to
the CEOs compensation, evaluate the CEOs performance
in light of those goals and objectives, and determine the
CEOs compensation level based on this evaluation; evaluate
the CEOs and other key executives compensation
levels and payouts against pre-established performance goals and
objectives, an appropriate peer group, and the awards given to
the CEO or other executive in past years;
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review compensation policies and practices applicable to all
employees as they related to risk management and determine
whether the risks arising from these compensation policies and
practices are reasonably likely to have a material adverse
effect;
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approve all compensation consultant engagement fees and terms,
including engagements with compensation consultants involving
services in addition to executive and director
compensation; and
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prepare a report to be included in our proxy statement and
provide other regular reports to the board.
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The Compensation Committee held five meetings in 2010, three of
which were by teleconference, and each of the directors who
served on the Compensation Committee during 2010 attended 100%
of these meetings.
Compensation
Committee Interlocks and Insider Participation
John V. Holten, who was terminated as our Chairman in October
2009, served as a member of our Compensation Committee until
April 28, 2010. None of the other members of our
Compensation Committee has at any time been one of our officers
or employees. None of our executive officers currently serves,
or in the past fiscal year has served, as a member of the board
of directors or compensation committee of any entity that has
one or more executive officers serving on our board or
Compensation Committee.
EXECUTIVE
OFFICERS
The table below sets forth certain information as of
March 1, 2011 regarding our executive officers that are not
identified in the table under Board and Corporate
Governance Matters Nominees for Director.
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Name
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Age
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Position
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G. Marc Baumann
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55
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Executive Vice President; Chief Financial Officer; Treasurer
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Thomas L. Hagerman
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50
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Executive Vice President; Chief Operating Officer
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Gerard M. Klaisle
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57
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Executive Vice President; Chief Human Resource Officer
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John Ricchiuto
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54
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Executive Vice President of Operations
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Robert N. Sacks
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Executive Vice President; General Counsel and Secretary
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Edward E. Simmons
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61
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Executive Vice President of Operations
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Steven A. Warshauer
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56
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Executive Vice President of Operations
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Michael K. Wolf
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61
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Executive Vice President; Chief Administrative Officer;
Associate General Counsel
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G. Marc Baumann has served as executive vice
president, chief financial officer and treasurer since October
2000. Prior to his appointment as our chief financial officer,
Mr. Baumann was chief financial officer for Warburtons Ltd.
in Bolton, England from January 1993 to October 2000.
Mr. Baumann is a certified public accountant and a member
of both the American Institute of Certified Public Accountants
and the Illinois CPA Society. He received his B.S. degree in
1977 from Northwestern University and his M.B.A. degree from the
Kellogg School of Management at Northwestern University in 1979.
Thomas L. Hagerman has served as our executive vice
president and chief operating officer since October 2007. He
also served as our executive vice president of operations from
July 2004 through September 2007, and as a senior vice president
from March 1998 through June 2004. He received his B.A. degree
in marketing from The Ohio State University in 1984, and a B.A.
degree in business administration and finance from Almeda
University in 2004.
Gerard M. Klaisle has served as our executive vice
president and chief human resource officer since February 2010.
He served as our senior vice president human
resources from April 2005 through January 2010. Prior to joining
our Company, Mr. Klaisle was senior vice president of human
resources for USF Corporation, a trucking and logistics company,
from April 2001 through December 2004. Prior to joining USF
Corporation, Mr. Klaisle served 18 years with Midas,
Inc. where he rose from director of labor relations to senior
vice president, human resources. Mr. Klaisle earned a B.S.
degree from LeMoyne College in 1975 and his M.B.A. from Loyola
University in Chicago in 1979.
John Ricchiuto has served as our executive vice president
of operations since December 2002. Mr. Ricchiuto joined
Standard Parking in 1980 as a management trainee. He served as
vice president Airport Properties Central from 1993
until 1994, and as senior vice president Airport
Properties Central and Eastern United States from 1994 until
2002. Mr. Ricchiuto received his B.S. degree from Bowling
Green University in 1979.
Robert N. Sacks has served as executive vice president,
general counsel and secretary since March 1998. Mr. Sacks
joined Standard Parking in 1988, and served as general counsel
and secretary since 1988, as vice president, secretary, and
general counsel from 1989, and as senior vice president,
secretary and general counsel from 1997 to March 1998.
Mr. Sacks received his B.A. degree, cum laude, from
Northwestern University in 1976 and, in 1979, received his J.D.
degree from Suffolk University where he was a member of the
Suffolk University Law Review.
Edward E. Simmons has served as executive vice president
of operations since August 1999 and as senior vice president of
operations from May 1998 to July 1999. Mr. Simmons has
served as president of SP Plus Security Services, Inc., our
affiliate, since 2006. Prior to joining our Company,
Mr. Simmons was president, chief executive officer and
co-founder of Executive Parking, Inc. Mr. Simmons is
currently a member of the International Parking Institute.
Mr. Simmons is a past executive board member of the Parking
Association of California.
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Steven A. Warshauer has served as executive vice
president of operations since March 1998. Mr. Warshauer
joined Standard Parking in 1982, initially serving as vice
president, then becoming senior vice president.
Mr. Warshauer received his B.S. degree from the University
of Northern Colorado in 1976 with a major in Accounting.
Michael K. Wolf has served as executive vice president,
chief administrative officer and associate general counsel since
March 1998. Mr. Wolf served as senior vice president and
general counsel of Standard Parking from 1990 to January 1998.
Mr. Wolf received his B.A. degree in 1971 from the
University of Pennsylvania and in 1974 received his J.D. degree
from Washington University, where he served as an editor of the
Washington University Law Quarterly and was elected to
the Order of the Coif.
COMPENSATION
DISCUSSION AND ANALYSIS
Overview
Our Compensation Discussion and Analysis discusses the
principles underlying our executive compensation decisions and
the most important factors relevant to an analysis of these
decisions. It provides qualitative information regarding the
manner and context in which compensation is awarded to and
earned by our named executive officers listed in the Summary
Compensation Table, and places in perspective the data presented
in the tables and other quantitative information that follows
this section.
Our Compensation Committee has administered our executive
compensation program since this Committee was established in
conjunction with our initial public offering in June 2004.
Broadly stated, the Compensation Committees overall role
is to oversee all of our compensation plans and policies,
administer our equity plans and policies, approve equity grants
to our executive officers and review and approve all
compensation decisions relating to the named executive officers.
Historically, we have employment agreements with all of our
named executive officers. It is customary in the parking
industry for senior executives to have employment agreements
because it encourages employment continuity and is a practical
means to insure that client relationships are protected through
the legal enforcement of protective covenants, including the
covenant not to compete and the covenant not to solicit
customers and employees. Moreover, these agreements were created
in part to ensure executive continuity, since until 2007 we had
no programs with substantial executive retention value through
the creation of forfeiture risk (e.g., pension plan,
restricted stock, etc.). Hence, executive retention and
protection of our interests have been created in part through
the use of employment agreements.
We measure stock-based compensation expense at the grant date,
based on the fair value of the award, and the expense is
recognized over the requisite employee service period
(generally, the vesting period) for awards expected to vest
(considering estimated forfeitures). Accounting rules also
require us to record cash compensation as an expense at the time
the obligation is accrued. It is not anticipated that any
executive officers annual cash compensation will exceed
$1 million, and we accordingly have not made any plans to
qualify for any compensation deductions under
Section 162(m) of the Internal Revenue Code.
Compensation
Objectives
Our current executive compensation programs are intended to
achieve three fundamental objectives: (1) attract and
retain qualified key executives, many of whom are responsible
for developing, nurturing and maintaining the client
relationships that are critical to our business;
(2) motivate performance to achieve specific strategic and
operating objectives of our Company; and (3) align
executives interests with the long-term interests of our
stockholders. As described in more detail below, the material
elements of our current executive compensation program for named
executive officers include a base salary, an annual bonus
opportunity in the form of the Management Incentive Compensation
Program, perquisites and personal benefits, a long-term equity
incentive opportunity, retirement benefits, severance protection
for certain terminations of the named executive officers
employment and other post-termination benefits payable upon
retirement, death or disability.
15
We believe that each element of our executive compensation
program helps us to achieve one or more of our compensation
objectives. The table below lists each material element of our
executive compensation program and the compensation objective or
objectives that it is designed to achieve.
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Compensation Objective
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Compensation Element
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Attract and retain qualified executives
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Short Term / Annual
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Base Salary
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Annual Bonus / Management Incentive
Compensation Program
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Perquisites and Personal Benefits
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Long Term
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Career Restricted Stock Unit Program
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Retirement Benefits and Deferred
Compensation
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Motivate performance to achieve specific strategies and
operating objectives
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Short Term / Annual
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Annual Bonus / Management Incentive
Compensation Program
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Long Term
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Career Restricted Stock Unit Program
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Align named executive officers and stockholders
long- term interests
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Long Term
Career Restricted Stock Unit Program
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The Compensation Committee reviews the executive compensation
program and named executive officer compensation on an annual
basis. The use and relative contribution of each compensation
element is based on a subjective determination by the
Compensation Committee of the importance of each compensation
element in supporting our financial and strategic objectives
after taking into consideration the recommendations of our chief
executive officer.
As illustrated by the table above, base salaries, perquisites
and personal benefits, retirement benefits and severance and
other termination benefits are all primarily intended to attract
and retain qualified executives. These are the elements of our
current executive compensation program where the value of the
benefit in any given year is not dependent on performance. We
believe that in order to attract and retain top-caliber
executives, we need to provide them with predictable benefit
amounts that reward the executives continued service. Some
of the elements, such as base salaries and perquisites and
personal benefits, are generally paid out on a short-term or
current basis. The other elements are generally paid out on a
longer-term basis such as upon retirement or other termination
of employment. We believe that this mix of longer-term and
short-term components allows us to achieve our dual goals of
attracting and retaining executives.
Our annual bonus opportunity is primarily intended to motivate
named executive officers performance to achieve specific
strategies and operating objectives, although we also believe it
helps us attract and retain executives. Our career restricted
stock unit program, as described below, is primarily intended to
align named executive officers long-term interests with
stockholders long-term interests, although we also believe
it will help motivate performance and help us attract and retain
executives. These are the elements of our current executive
compensation program that are designed to reward performance and
the creation of stockholder value, and therefore the value of
these benefits is dependent on performance. Each named executive
officers annual bonus opportunity is paid out on an annual
short-term basis and is designed to reward performance for that
period. Career restricted stock units are generally awarded once
to each named executive officer and are designed to reward
performance over a decade or longer.
Compensation
Study, Compensation Philosophy and Benchmarking
With the Compensation Committees concurrence, management
engaged Watson Wyatt (now Towers Watson) in the later part of
2008 to determine the relationship of our pay practices to those
of other
16
companies. The Watson Wyatt study, which was presented to the
Compensation Committee in February 2009, concluded, among other
things, as follows:
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Our base salaries were generally above the 50th percentile
when compared to general industry benchmark data.
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Total cash compensation (base salary and annual bonus) was
positioned at market median (50th percentile).
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Long-term compensation of the type typically found at most
public companies was between the 25th percentile and market
median.
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Total direct compensation (base salary, annual bonus and
long-term compensation) was generally positioned at the
50th percentile.
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Compensation decisions for 2010 were based on the 2008
compensation study.
In the later part of 2010, the Compensation Committee engaged
Towers Watson as its independent consultant to conduct a new
study regarding the relationship of our pay practices to those
of other companies. The Towers Watson study concluded, among
other things, as follows:
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Base salaries were generally above the 50th percentile when
compared to general industry benchmark data.
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With the exception of our chief executive officer and chief
operating officer target, total cash and actual cash
compensation (base salary and annual bonus) was positioned at or
above market median (50th percentile).
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Long-term compensation of the type typically found at most
public companies was generally below the 25th percentile.
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Total direct compensation (base salary, annual bonus and
long-term compensation) was generally positioned between the
25th percentile and market median.
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As discussed above, our Compensation Committee believes that the
compensation of our named executive officers must be closely
aligned with our performance, on both a short and long-term
basis, at responsible levels that are consistent with our
cost-conscious culture. At the same time, the Committee
recognizes that our compensation programs must be designed to
attract and retain key executives, many of whom are responsible
for developing, nurturing and maintaining the client
relationships that are important to producing superior results
for our stockholders.
We use published survey data (in both the 2008 and 2010 studies)
as a benchmarking tool, but do not benchmark against specific
companies within such surveys. We operate in a large and
fragmented industry with no direct competitors that are public.
The single possible peer company in the parking industry is
engaged in multiple business segments, and parking represents
only a small part of its business. Accordingly, we do not use
data that are specific to any company within the surveys. Based
on the recommendation of Towers Watson, we use data from two
nationally recognized published surveys. These surveys represent
a broad group of general industry companies and service industry
companies. The survey group is updated bi-annually
The surveys used by Watson Wyatt in their evaluation of base
salaries, total cash compensation and total direct compensation
for our chief executive officer and other named executive
officers in the 2008 study included Watson-Wyatt Data Services
2007-2008 Survey Report on Top Management Compensation and the
Mercer 2008 US Mercer Benchmark Database Executive.
These surveys represent 1,375 and 2,579 companies,
respectively. Using commonly accepted statistical techniques,
Watson Wyatt adjusted the compensation data from the companies
in the survey with annual revenues significantly different from
ours in order to better correlate the data with ours. Watson
Wyatt also adjusts position specific survey data to better match
the actual responsibilities we assign to the position most
comparable to the industry standard position. For
confidentiality reasons, Watson Wyatt and the other survey
houses do not disclose the specific compensation data by company
in these surveys. We believe that the aforementioned survey
group is appropriate because it provides a significant sample
size,
17
includes reasonably accurate executive position matches for
benchmarking purposes, and includes companies from other
industries from which we might potentially recruit.
A significant consideration for 2011 compensation decisions
affecting our named executive officers will be the 2010 study by
Towers Watson, which followed the same evaluation methodology as
the previous study using survey data for benchmarking.
Specifically, Towers Watson Data Services 2010-2011 Top
Management Survey had 1,637 participating organizations and
18,974 incumbents, and the Mercer 2010 Benchmark
Database Executive had 2,269 participating
organizations and 44,308 incumbents.
For compensation planning purposes, Towers Watson has
recommended that the most reasonable approach is to evaluate our
pay practices for senior executives against this survey data by
regressing the survey data to revenues of $1.1 billion,
which reflects a compromise revenue benchmark. Given the nature
of our business model as a parking management company, reported
revenues do not accurately reflect proper size comparison. The
revenue we manage for clients is more than double our reported
revenue, and the corresponding infrastructure necessary to
support the business model more closely resembles a company with
more than $1.0 billion in revenue. Accordingly, taking
these factors into consideration, Towers Watson recommended that
we be compared to companies with revenues in the range of
$700.0 million to $1.5 billion, specifically targeting
$1.1 billion as the appropriate benchmark.
Given the information obtained from the current and previous
compensation studies, the Committee has informally adopted a
guideline that targets total cash compensation in the
50th percentile range for executive officers when
benchmarked to general industry data. This range, however, is
merely a guideline because the Committee does not believe in
fixing compensation levels based only on benchmarking. The
Committee believes that other factors should be considered and
weighted appropriately, including, but not limited to, the
history underlying our current compensation levels, relative
compensation levels among our senior executives, pay levels in
the parking industry, as well as our overall performance in
relation to the performance of other parking companies. The
Companys actual cash compensation practice is at the
market median.
We manage our pay structure and make compensation decisions
using a combination of policies, practices and inherent logic.
We have a pay for performance culture as exemplified
by our management of salaries, bonus compensation and equity
compensation. Base salaries typically are adjusted to provide
cost of living increases, and our executives true upside
potential has been provided through bonus and stock option or
other stock award opportunities available under our annual cash
and long-term incentive plans. This philosophy and approach are
strengthened by our increased use of benchmark data during the
base salary, annual bonus and long-term compensation review
process.
Compensation
Program Components
Our compensation to the named executive officers consists
primarily of the following elements: base salary, management
incentive compensation, perquisites and personal benefits,
compensation under our Long Term Incentive Plan, retirement
benefits and deferred compensation opportunities and severance
and other benefits upon termination of employment or a change in
control.
Base
Salary
Base salary is a critical element of named executive officer
compensation because it is the source of their consistent income
stream and is the most visible barometer of evaluation
vis-à-vis the employment market. In establishing and
reviewing base salaries, the Compensation Committee considers
various factors that include the executives qualifications
and experience, scope of responsibilities, internal pay equity,
past performance and achievements, future expectations that
include the executives ability to impact short-term and
long-term results, as well as the salary practices at other
comparable companies. We strive to provide our named executive
officers with a competitive base salary that is in line with
their roles and responsibilities when compared to companies of
comparable size. We froze base salaries for all named executive
officers and other salaried employees for 2009 in anticipation
of adverse economic conditions; however, we made modest
increases in 2010 as the economy improved.
18
Management
Incentive Compensation
Our named executive officers participate in our Management
Incentive Compensation Program, which provides for an annual
incentive bonus. Our Compensation Committee oversees this
program, and it creates annual performance criteria that are
flexible and that change with the needs of our business. By
creating target awards and setting performance objectives at the
beginning of each fiscal year, our named executive officers have
the proper incentives to attain the key performance metrics in
the business.
The target bonuses, metrics, weightings, level of achievement
and awards are set forth in tables set forth under Bonus
Targets, Weighting, Metrics and Awards Tables.
Perquisites
and Personal Benefits
In addition to base salaries and annual bonus opportunities, we
provide our named executive officers with certain perquisites
and personal benefits. We believe that perquisites are often a
way to provide the named executive officers with additional
annual compensation that supplements their base salaries and
bonus opportunities. When determining each named executive
officers base salary, we take the value of each named
executive officers perquisites and personal benefits into
consideration.
The perquisites and personal benefits paid to each named
executive officer in 2010 are reported in column (i) of the
Summary Compensation Table, below, and further described in the
footnotes thereto.
Career
Restricted Stock Unit Program and LTIP
General. Our shareholders approved an
amendment to our Long-Term Incentive Plan at our 2008 Annual
Meeting that increased the number of shares of common stock
available for award thereunder, and the Compensation Committee
and board approved a one-time grant of career restricted stock
units that were awarded to the members of our senior management
team on July 1, 2008 in lieu of any foreseeable incentive
compensation pursuant to the LTIP. An overview of the underlying
objectives and details of the July 1, 2008 one-time grant
of career restricted stock units is as follows:
Objectives.
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Achieve Significant Equity Investment By Senior Management To
Align Their Long-Term Interests With
Shareholders. One of our basic compensation
objectives is to align our executives interests with the
long-term interests of our shareholders. We believe we can
further that objective if the members of our senior management
team possess a significant equity interest in the Company.
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Retain Senior Management. Our ongoing future
success depends in large part on our success in retaining the
members of our senior management team. We believe that a
meaningful grant of time-restricted stock units, which
represents substantial value to the recipient on day one, will
achieve our retention objective.
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Overview
of Award Details.
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Time Restrictions. The restricted stock units
(RSUs) are subject to a time restriction that will
be removed from one-third of them after ten years of continuous
service, from another one-third after eleven years of continuous
service, and from the final one-third after twelve years of
continuous service. Anyone reaching retirement age (typically
age 65) before the expiration of the twelve-year
period would be entitled to have all restrictions removed at
that time.
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Limitation on Sale after Restriction
Removal. In the year that restrictions are
removed, the executive will be entitled to sell enough
unrestricted shares to enable him to pay the state and federal
income taxes incurred by reason of the restriction removal. Of
the remaining unrestricted shares, individuals would be expected
to comply with the Long-Term Incentive Plan Stock Ownership
Policy Statement as approved and modified by the board from time
to time. Individuals whose employment terminates will have no
limitations on their right to sell unrestricted shares after the
time of termination.
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19
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Rights On Termination. The award agreements
each address the recipients rights in the event his
employment terminates prior to the removal of the time
restrictions from all of the RSUs. An executive who voluntarily
resigns other than for good reason, or who is terminated for
cause, will forfeit all RSUs as to which the time restriction
has not lapsed as of the time of termination. An executive who
is terminated by us without cause would retain a prorated
portion of his award and the time restrictions would be removed
from the retained shares immediately upon termination. Similar
treatment would be given to an executive who resigns for good
reason or whose employment is terminated due to the
executives permanent disability or death.
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Non-Compete. The award agreements prohibit the
executive from competing with us for a designated period of time
after his employment terminates (regardless of the termination
reason). Any executive who violates these provisions will
forfeit 100% of the award, and we will be entitled to sue the
executive to recover the proceeds of any award shares previously
sold by the executive.
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LTIP. Currently, a total of
2,175,000 shares of common stock may be issued pursuant to
stock awards under our LTIP. The LTIP terminates on
April 22, 2028. No stock awards may be granted under the
LTIP after it is terminated with the exception of incentive
stock options, which may not be granted after January 23,
2012. The purpose of the LTIP is to enhance long-term
profitability and stockholder value by offering common stock and
common stock-based and other performance incentives to named
executive officers and others who are key to our growth and
success. We also view the LTIP as a vehicle to attract and
retain experienced employees and to align our employees
economic incentives with those of our stockholders. The LTIP
provides for the issuance of stock options, restricted stock,
RSUs, stock appreciation rights, dividend equivalents, other
stock-based awards, performance awards and cash awards. In
determining the number of any securities that may be granted to
named executive officers, the Compensation Committee takes into
account the individuals position, scope of responsibility,
ability to affect the profitability of the business as well as
long-term stockholder value. All option or stock grants are
issued so the grant price reflects the market value on the date
of grant. No awards were granted under our LTIP in 2009 or 2010.
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Retirement
Benefits and Deferred Compensation Opportunities
Deferred compensation is a tax-advantaged means of providing
certain named executive officers with additional compensation
that supplements their base salaries and bonus opportunities,
including our 401(k) plan. In addition, we have entered into
various agreements over the years with certain named executive
officers that provide for various retirement benefits and
deferred compensation opportunities. These plans grew out of a
perceived need to provide some form of retirement income to
executives and are intended to provide a modest payment towards
retirement.
Mr. Wilhelm is a party to a Deferred Compensation Agreement
with us dated August 1, 1999, which we refer to as a
supplemental early retirement plan (SERP). This SERP
provides him with an annual retirement benefit equal to $112,500
to begin upon his retirement at age 65 and to continue for
a period of 15 years thereafter or, if earlier, until his
death. Pursuant to the terms of Mr. Wilhelms
employment agreement, if Mr. Wilhelms employment with
us continues until he attains age 58, we have agreed to pay
certain insurance premiums related to Mr. Wilhelms
SERP and to continue to provide health insurance coverage for
Mr. Wilhelm and his wife after he attains age 58 until
he attains age 65. If Mr. Wilhelms employment is
terminated after he attains age 55 and before he attains
age 58 (other than for cause of performance reasons), he
may elect to have these annuity policies assigned to him or he
may elect to have us maintain the policies at his cost, subject
to our payment of all policy premiums for each year that
Mr. Wilhelm continues to be employed or is deemed to have
been employed by us.
Pursuant to the terms of Mr. Baumanns employment
agreement, we have agreed to pay the premiums on certain
insurance policies owned by Mr. Baumann that will provide
an annual cash benefit to him for a period of 15 years,
beginning in the year in which Mr. Baumann attains
age 65. The current amount of the annual premium is
$81,053. If Mr. Baumanns employment is terminated
(other than for cause or other than by
20
Mr. Baumann without good reason), we will continue to pay
the premiums on the insurance policies until the earlier of
Mr. Baumanns death or his attainment of age 65.
Pursuant to the terms of Mr. Wolfs employment
agreement, starting January 1, 2004, we have agreed to pay
$62,000 in premiums annually on certain insurance policies or
other investment vehicles owned by Mr. Wolf. Our obligation
to pay that amount each year shall continue until the earlier of
2014 or Mr. Wolfs death.
Severance
and Other Benefits Upon Termination of Employment or a Change in
Control
In general, the employment agreements of the named executive
officers have provisions that are triggered if they are
terminated for various reasons. Please see the Potential
Payments Upon Termination or
Change-in-Control
section below for a description of the potential payments that
may be made to the named executive officers in connection with
their termination of employment or a
change-in-control.
In addition, our board has the discretion to accelerate the
vesting of unvested options or restricted stock awards in the
event of a change in control.
Determination
of 2010 Compensation
General
We froze salary levels for all named executive officers and
other salaried employees for 2009 because of the recession, but
improvement in both the U.S. and Canadian economies in late
2009 and 2010 led to modest salary increases in 2010. On
February 1, 2010, Messrs. Baumann and Hagerman
received salary increases of 6.2% and 9.0%, respectively, due to
merit and a market adjustment to reflect the current demand for
similarly situated executives in the marketplace. All named
executive officers received increases of 2.5% effective
April 1, 2010. Additionally, we restored bonus awards for
the chief executive officer, named executive officers, and all
other salaried employees, which had been eliminated in 2009. No
awards were made under the Long-Term Incentive Plan in 2010.
Compensation
of Our Chief Executive Officer
Mr. Wilhelms 2010 compensation was governed largely
by his employment agreement with us. Under that agreement,
Mr. Wilhelm earned a base salary of $635,661 in fiscal
2010. He received a 2.5% salary increase during 2010. Under our
Management Incentive Compensation Program, Mr. Wilhelm
earned $150,000 for 2010, as described in detail below under
2010 Bonus Targets, Weighting, Metrics and Awards
Tables. No grants were made to Mr. Wilhelm under
our Long-Term Incentive Plan. Our liability for
Mr. Wilhelms SERP benefit increased by $108,256
during fiscal 2010, and our total liability under this SERP is
$777,292 as of December 31, 2010. Other compensation,
including perquisites, totaled $21,102.
Compensation
of Our Other Named Executive Officers
Our chief executive officer and chief human resource officer
regularly and routinely work with our Compensation Committee
throughout the year, with input as appropriate from our outside
legal counsel, as well as from outside compensation consultants,
Towers Watson, to assist the Committee in addressing and
discharging its duties and obligations under its charter. Our
Chief Executive Officer plays an integral and instrumental role
in making specific recommendations to the Compensation Committee
regarding the compensation for all of the named executive
officers other than the Chief Executive Officer himself. The
compensation of our chief executive officer is decided by our
board.
All of our other named executive officers have entered into
employment agreements with us, and their compensation is
governed largely by their respective agreements. The base salary
earned for each for the year ended December 31, 2010 was as
follows: Mr. Baumann $431,372,
Mr. Hagerman $404,713,
Mr. Warshauer $437,291 and
Mr. Wolf $389,396. Mr. Baumann received a
6.2% increase in his base salary in February 2010
Mr. Hagerman received a 9.0% increase in his base salary in
February 2010; and all
21
named executive officers received a 2.5% increase in their base
salaries in April 2010. None of the named executive officers
received a salary increase in 2009.
Awards made to these four executives for 2010 under the
Management Incentive Compensation Program, based on their
individual achievement of their respective performance goals,
ranged from $64,260 to $116,602 as set forth below under
2010 Bonus Targets, Weighting, Metrics and Awards
Tables. No awards were made to these four executives
for 2010 under our Long-Term Incentive Plan. Mr. Baumann
received $81,053 for certain retirement benefits as described in
the Retirement Benefits and Deferred Compensation
Opportunities section above and for a separate life
insurance premium payment. Mr. Wolf received $62,000 for
certain retirement benefits as described in the Retirement
Benefits and Deferred Compensation Opportunities section
above and for certain long-term disability insurance benefits.
2010
Bonus Targets, Weighting, Metrics and Awards
Tables
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Actual Results
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Threshold
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Target
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Maximum
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Metrics
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Name
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Metrics
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Weighting
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Metrics($)
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Metrics($)
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Metrics($)
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Metrics
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(% Target)
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James A. Wilhelm
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Company pre-tax net income
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100
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%
|
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24,161,990
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30,202,487
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37,753,109
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28,247,146
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93.5
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President; Chief
Executive Officer
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G. Marc Baumann
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Departmental G&A budget
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25
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%
|
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7,978,694
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|
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8,865,215
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|
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11,081,519
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|
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8,219,371
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92.7
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EVP; Chief Financial Officer
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Corporate EBITDA attainment
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75
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%
|
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39,711,098
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49,638,873
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|
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62,048,591
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45,716,345
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92.1
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Michael K. Wolf
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Departmental G&A budget
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25
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%
|
|
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2,823,435
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|
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3,137,150
|
|
|
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3,921,438
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|
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3,066,589
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|
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97.8
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EVP; Chief Administrative Officer
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Corporate budget attainment
|
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|
75
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%
|
|
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39,711,098
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|
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49,638,873
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|
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62,048,591
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45,716,345
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92.1
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Steven A. Warshauer
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Corporate EBITDA attainment
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50
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%
|
|
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39,711,098
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|
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49,638,873
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|
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62,048,591
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|
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45,716,345
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92.1
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EVP Operations
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Division budget attainment
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30
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%
|
|
|
21,970,553
|
|
|
|
24,411,725
|
|
|
|
30,514,656
|
|
|
|
21,584,042
|
|
|
|
88.4
|
|
|
|
Audit scores
|
|
|
10
|
%
|
|
|
85
|
%
|
|
|
95
|
%
|
|
|
95
|
%
|
|
|
NA
|
|
|
|
96.8
|
|
|
|
Location retention
|
|
|
10
|
%
|
|
|
86
|
%
|
|
|
92
|
%
|
|
|
92
|
%
|
|
|
NA
|
|
|
|
89.0
|
|
Thomas L. Hagerman
|
|
Corporate EBITDA attainment
|
|
|
50
|
%
|
|
|
39,711,098
|
|
|
|
49,638,873
|
|
|
|
62,048,591
|
|
|
|
45,716,345
|
|
|
|
92.1
|
|
EVP; Chief Operating
|
|
Corporate budget attainment
|
|
|
30
|
%
|
|
|
54,096,351
|
|
|
|
60,107,057
|
|
|
|
75,133,821
|
|
|
|
54,755,905
|
|
|
|
91.1
|
|
Officer
|
|
Audit scores
|
|
|
10
|
%
|
|
|
85
|
%
|
|
|
95
|
%
|
|
|
95
|
%
|
|
|
NA
|
|
|
|
94.5
|
|
|
|
Location retention
|
|
|
10
|
%
|
|
|
86
|
%
|
|
|
92
|
%
|
|
|
92
|
%
|
|
|
NA
|
|
|
|
90.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
|
|
Target
|
|
Target
|
|
|
|
|
|
Threshold
|
|
Maximum
|
|
Actual
|
|
Actual
|
Name
|
|
Salary
|
|
Bonus
|
|
Bonus
|
|
Metrics
|
|
Weighting
|
|
Bonus
|
|
Bonus
|
|
Bonus
|
|
Bonus
|
|
James A. Wilhelm
|
|
$
|
640,191
|
|
|
$
|
150,000
|
|
|
|
23.4
|
%
|
|
Company pre-tax net income
|
|
|
100
|
%
|
|
$
|
7,500
|
|
|
$
|
277,500
|
|
|
$
|
150,000
|
(1)
|
|
|
100.0
|
%
|
G. Marc Baumann
|
|
$
|
437,593
|
|
|
$
|
151,494
|
|
|
|
34.6
|
%
|
|
Departmental G&A budget
|
|
|
25
|
%
|
|
$
|
10,408
|
|
|
$
|
189,368
|
|
|
$
|
116,602
|
(2)
|
|
|
77.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate EBITDA attainment
|
|
|
75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michael K. Wolf
|
|
$
|
392,171
|
|
|
$
|
95,000
|
|
|
|
24.2
|
%
|
|
Department G&A budget
|
|
|
25
|
%
|
|
$
|
6,531
|
|
|
$
|
118,750
|
|
|
$
|
76,849
|
(2)
|
|
|
80.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate budget attainment
|
|
|
75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steven A. Warshauer
|
|
$
|
440,407
|
|
|
$
|
91,800
|
|
|
|
20.8
|
%
|
|
Corporate EBITDA attainment
|
|
|
50
|
%
|
|
$
|
7,497
|
|
|
$
|
110,160
|
|
|
$
|
64,260
|
(3)
|
|
|
70.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Division budget attainment
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audit scores
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Location retention
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomas L. Hagerman
|
|
$
|
411,751
|
|
|
$
|
120,000
|
|
|
|
29.1
|
%
|
|
Corporate EBITDA attainment
|
|
|
50
|
%
|
|
$
|
9,800
|
|
|
$
|
144,000
|
|
|
$
|
94,000
|
(3)
|
|
|
78.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate budget attainment
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audit scores
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Location retention
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Mr. Wilhelms actual level of attainment relative to
the pre-tax net income metric was 67.5% ($101,250). However, in
addition to this amount, the Compensation Committee approved a
special adjustment of an additional $48,750. This amount was in
recognition of his achievements leading the company through a
strategic transformation of the business as well as an inequity
adjustment related to the bonus opportunity. The Committee noted
that Mr. Wilhelms target bonus profile of 23%, or
$150,000 (expressed as a percentage of base salary), was
extraordinarily low in comparison to like positions based on the
2008 Watson |
22
|
|
|
|
|
Wyatt benchmarking study and the target had been fixed for a
number of years. Accordingly, the $150,000 payment was
realistically a reduced percentage (50%) of a competitive target. |
|
(2) |
|
Mr. Baumanns and Mr. Wolfs Departmental
G&A actually spent was substantially less than budget
(i.e., their G&A budget targets exceeded the actual
amount spent); however, the Compensation Committee determined
that the applicable bonus amounts would be capped at 100% of the
bonus target for this specific metric. The Committee authorized
a one-time $10,000 adjustment in addition to
Mr. Baumanns and Mr. Wolfs calculated
bonus in recognition of executive teams achievements in
providing executive leadership through a strategic
transformation of the business. |
|
(3) |
|
Mr. Hagermans and Mr. Warshauers bonus
amounts were increased by $22,725 and $36,882, respectively,
from the calculated bonus reflecting (i) certain year-end
adjustments not reflected in the Division budget attainment
metric, and (ii) similar recognition of their individual
roles in providing executive leadership through a strategic
transformation of the business. |
The Compensation Committee believes that the pre-tax income
measure for our Chief Executive Officer and an EBITDA measure
for the other named executive officers that participate in the
program are appropriate measures of performance at this time.
These measures will likely evolve and ultimately be modified as
circumstances warrant, including possible adjustments due to
acquisitions and other atypical events. With the exception of
Mr. Baumann, whose target opportunity is based on a
percentage of his base salary, the other participating
executives target bonus opportunities are fixed and
subject to change only via approval of the Compensation
Committee.
Determination
of 2011 Compensation
We are taking a cautious but reasonably optimistic view that
economic conditions and the business outlook will continue to
improve in 2011. Accordingly, the various components of our 2010
compensation program will remain in place for 2011, including
base salaries and the Management Incentive Plan. We froze salary
levels for all named executive officers and other
executive-level positions for 2011. During 2011, the
Compensation Committee will be reviewing the executive
compensation programs, including the LTIP, in light of the 2010
Towers Watson Executive Compensation study and determining
whether any modifications are warranted. If we issue options
under the LTIP in the future, such options will be subject to
re-pricing prohibitions.
Reasonableness
of Compensation
After considering all components of the compensation paid to the
named executive officers, the Compensation Committee has
determined that the compensation is reasonable and not
excessive. In making this determination, the Compensation
Committee considered many factors, including:
|
|
|
|
|
Management led the company through a severe recession and
personally shared in the required financial sacrifices through
salary freezes and the forfeiture of any annual bonuses in 2009;
|
|
|
|
Based on the 2008 Watson Wyatt study, the total cash
compensation levels for our named executive officers is
positioned at market median when compared to general industry,
and total direct compensation (including the long- term
incentive plan) is at the 50th percentile; and
|
|
|
|
Management has led us to excellent performance levels in recent
years.
|
23
COMPENSATION
COMMITTEE REPORT
The Compensation Committee of the board of directors has
reviewed and discussed with management the foregoing
Compensation Discussion and Analysis, and based on
such review and discussion, the Compensation Committee
recommended to the board of directors that the
Compensation Discussion and Analysis be included in
this proxy statement on Schedule 14A for filing with the
Securities and Exchange Commission.
By the Compensation Committee,
Karen M. Garrison
Robert S. Roath (Chair)
Michael J. Roberts
EXECUTIVE
COMPENSATION
Summary
Compensation Table
The following table sets forth the compensation earned, awarded
or paid for services rendered to us in all capacities for the
fiscal years ending December 31, 2010, 2009 and 2008 by our
Principal Executive Officer (PEO), Principal Financial Officer
(PFO), the three other highest paid executive officers other
than the PEO and PFO, and one additional individual who would
have been one of the three highest paid executive officers other
than the PEO and PFO but was not serving as an executive officer
at December 31, 2009. These persons are referred to,
collectively, as the named executive officers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Equity
|
|
Pension
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incentive
|
|
and
|
|
All
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
Option
|
|
Plan
|
|
NQDC
|
|
Other
|
|
|
|
|
|
|
Salary
|
|
Bonus
|
|
Awards
|
|
Awards
|
|
Compensation
|
|
Earnings
|
|
Compensation
|
|
Total
|
Name and Principal Position
|
|
Year
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
|
($)(1)
|
|
($)(2)
|
|
($)
|
|
($)
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
|
(e)
|
|
(f)
|
|
(g)
|
|
(h)
|
|
(i)
|
|
(j)
|
|
James A Wilhelm
|
|
|
2010
|
|
|
|
635,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
150,000
|
|
|
|
108,256
|
|
|
|
21,102
|
(3)
|
|
|
915,019
|
|
Chief Executive
|
|
|
2009
|
|
|
|
629,381
|
|
|
|
|
|
|
|
19,056
|
|
|
|
|
|
|
|
19,600
|
|
|
|
108,256
|
|
|
|
28,214
|
|
|
|
804,507
|
|
Officer (PEO)
|
|
|
2008
|
|
|
|
618,635
|
|
|
|
|
|
|
|
1,917,978
|
|
|
|
|
|
|
|
192,800
|
|
|
|
45,626
|
|
|
|
29,035
|
|
|
|
2,804,074
|
|
G. Marc Baumann
|
|
|
2010
|
|
|
|
431,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
116,602
|
|
|
|
|
|
|
|
91,605
|
(4)
|
|
|
639,579
|
|
Chief Financial
|
|
|
2009
|
|
|
|
405,012
|
|
|
|
|
|
|
|
7,626
|
|
|
|
|
|
|
|
7,840
|
|
|
|
|
|
|
|
95,659
|
|
|
|
516,137
|
|
Officer (PFO)
|
|
|
2008
|
|
|
|
391,009
|
|
|
|
|
|
|
|
774,491
|
|
|
|
|
|
|
|
148,369
|
|
|
|
|
|
|
|
94,095
|
|
|
|
1,407,964
|
|
Michael K. Wolf
|
|
|
2010
|
|
|
|
389,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
76,849
|
|
|
|
|
|
|
|
77,209
|
(5)
|
|
|
543,444
|
|
EVP; Chief Administrative
|
|
|
2009
|
|
|
|
385,549
|
|
|
|
|
|
|
|
7,626
|
|
|
|
|
|
|
|
7,840
|
|
|
|
|
|
|
|
76,542
|
|
|
|
477,557
|
|
Officer
|
|
|
2008
|
|
|
|
382,337
|
|
|
|
|
|
|
|
774,491
|
|
|
|
|
|
|
|
105,000
|
|
|
|
|
|
|
|
76,868
|
|
|
|
1,338,696
|
|
Steven A. Warshauer
|
|
|
2010
|
|
|
|
437,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64,260
|
|
|
|
|
|
|
|
10,161
|
(6)
|
|
|
511,712
|
|
EVP Operations
|
|
|
2009
|
|
|
|
432,970
|
|
|
|
|
|
|
|
7,626
|
|
|
|
|
|
|
|
7,840
|
|
|
|
|
|
|
|
10,694
|
|
|
|
459,130
|
|
|
|
|
2008
|
|
|
|
418,714
|
|
|
|
|
|
|
|
774,491
|
|
|
|
|
|
|
|
84,079
|
|
|
|
|
|
|
|
16,159
|
|
|
|
1,293,443
|
|
Thomas L. Hagerman
|
|
|
2010
|
|
|
|
404,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94,000
|
|
|
|
|
|
|
|
17,365
|
(7)
|
|
|
516,078
|
|
EVP; Chief Operating Officer
|
|
|
2009
|
|
|
|
364,455
|
|
|
|
|
|
|
|
7,626
|
|
|
|
|
|
|
|
7,840
|
|
|
|
|
|
|
|
25,700
|
|
|
|
405,621
|
|
|
|
|
(1) |
|
The amounts for 2010 included in column (g) reflect cash
bonuses paid pursuant to our Management Incentive Compensation
Program. |
|
(2) |
|
The amounts for 2010 included under column (h) for
Mr. Wilhelm reflect the difference between our liability
for Mr. Wilhelms SERP benefit at the beginning and
end of each respective year. |
|
(3) |
|
The amount for 2010 shown in column (i) for
Mr. Wilhelm reflects contributions made by us under our
401(k) plan in the amount of $4,900, $1,104 for group term life
insurance and $331 in premiums for an executive long-term
disability policy. It also includes $3,468 in company-paid
parking, $10,655 in club dues and $400 in airline clubs and $244
in airfare. |
|
(4) |
|
The amount for 2010 shown under column (i) for
Mr. Baumann reflects contributions made by us under our
401(k) plan in the amount of $4,900, $1,071 for group term life
insurance and $400 in airline clubs. |
24
|
|
|
|
|
Also included are payments in the amount of $4,181 attributable
to a company-paid comprehensive physical exam, premium payments
of $81,053 made in 2010 for insurance policies on behalf of
Mr. Baumann. |
|
(5) |
|
The amount for 2010 shown under column (i) for
Mr. Wolf reflects contributions made by us under our 401(k)
plan in the amounts of $4,900 and $1,770 for group term life
insurance. It also includes $3,468 in company-paid parking, $200
in airline upgrades, and $690 in premiums for an executive
long-term disability policy. Finally, the amount also includes
payments in the amount of $4,181 attributable to a comprehensive
physical exam paid for by us, premium payments of $62,000 made
in 2010 for insurance policies on behalf of Mr. Wolf. |
|
(6) |
|
The amount for 2010 shown under column (i) for
Mr. Warshauer reflects contributions made by us under our
401(k) plan in the amount of $4,900 and $1,079 in contributions
to a group term life insurance policy. It also includes $4,181
attributable to a comprehensive physical exam paid for by us. |
|
(7) |
|
The amount for 2010 shown under column (i) for
Mr. Hagerman reflects contributions made by us under our
401(k) plan in the amounts of $2,023 and $652 for group term
life insurance. It also includes $2,556 in reimbursement of
medical expenses. Finally, the amount also includes payments in
the amount of $7,384 for club dues, premium payments made on
Mr. Hagermans behalf in the amount of $4,750 for
insurance policies. |
Employment
Agreements
Mr. Wilhelm. We entered into an Amended
and Restated Executive Employment Agreement with
Mr. Wilhelm on January 28, 2009. Pursuant to the terms
of this employment agreement, if Mr. Wilhelms
employment with us continues until he attains age 58, we
have agreed to pay certain insurance premiums related to
Mr. Wilhelms SERP and to continue to provide health
insurance coverage for Mr. Wilhelm and his wife after he
attains age 58 until he attains age 65. If
Mr. Wilhelms employment is terminated before he
attains age 58 (other than for cause of performance
reasons), he may elect to have these annuity policies assigned
to him or he may elect to have us maintain the policies at his
cost, subject to our payment of all policy premiums for each
year that Mr. Wilhelm continues to be employed or is deemed
to have been employed by us. Mr. Wilhelms
non-competition obligation is 18 months if his employment
is terminated for cause or performance reasons, or by reason of
his voluntary resignation or disability, which corresponds with
the period over which salary continuation payments are made in
those cases. The period of Mr. Wilhelms
non-competition obligations is five years in the event his
employment is terminated for any other reason.
Mr. Wilhelms annual salary is governed by his
employment agreement. His annual salary as of March 1, 2011
is $640,191.
Messrs. Baumann, Wolf, Warshauer, and
Hagerman. We also have employment agreements with
each of our other named executive officers. The agreements for
Mr. Wolf and Mr. Baumann were amended January 28,
2009 to be consistent with treatment afforded to other peer
executives regarding salary continuation payments upon
termination of employment. Specifically, the agreements for
Messrs. Wolf and Baumann provide that for a period of
24 months following termination of their employment for any
reason other than for cause or the executives voluntary
termination, they will receive payments at the rate of their
most recent annual base salaries and target bonuses.
Each executives compensation is governed largely by his
respective employment agreement. The annual salary for each as
of March 1, 2011 is as follows:
Mr. Baumann $437,593, Mr. Wolf
$392,171, Mr. Warshauer $440,407 and
Mr. Hagerman $411,751. Mr. Baumann and
Mr. Hagerman received salary increases of 6.2% and 8.9%,
respectively, on February 1, 2010 due to merit and a market
adjustment to reflect the current demand for similarly situated
executives in the marketplace.
Each of the named executive officers is entitled to an annual
bonus based on corporate financial performance goals set
annually. The formula and method of bonus calculation are
identified in the Compensation Discussion and
Analysis Management Incentive Compensation
section. In addition, Mr. Wilhelm is entitled to
reimbursement for country club initiation fees and monthly dues.
The agreements also provide for reimbursement of travel and
other expenses in connection with their employment. As of
April 1, 2011, the employment agreements terminate on the
following dates, subject to the expiration of the annual renewal
25
notice period: Mr. Wilhelm May 1, 2014,
Mr. Baumann October 1, 2012,
Mr. Wolf March 26, 2012,
Mr. Warshauer December 31, 2011, and
Mr. Hagerman December 31, 2011.
Grants of
Plan-Based Awards for 2010
The following table sets forth information regarding bonus
amounts achievable pursuant to our Management Incentive
Compensation Program during 2010. No other grants of plan-based
awards were made in 2010 under the LTIP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Future Payouts
|
|
|
Under Non-Equity
|
|
|
Incentive Plan Awards(1)
|
|
|
Threshold
|
|
Target
|
|
Maximum
|
Name
|
|
($)
|
|
($)
|
|
($)
|
(a)
|
|
(c)
|
|
(d)
|
|
(e)
|
|
James A. Wilhelm
|
|
|
7,500
|
|
|
|
150,000
|
|
|
|
277,500
|
|
G. Marc Baumann
|
|
|
10,408
|
|
|
|
151,494
|
|
|
|
189,368
|
|
Michael K. Wolf
|
|
|
6,531
|
|
|
|
95,000
|
|
|
|
118,750
|
|
Steven A. Warshauer
|
|
|
7,497
|
|
|
|
91,800
|
|
|
|
110,160
|
|
Thomas L. Hagerman
|
|
|
9,800
|
|
|
|
120,000
|
|
|
|
144,000
|
|
|
|
|
(1) |
|
The amounts included in columns (c), (d) and
(e) reflect the bonus amounts achievable pursuant to our
Management Incentive Compensation Program. |
Outstanding
Equity Awards at Fiscal Year-End 2010
The following table shows stock awards subject to performance
restrictions outstanding on December 31, 2010, the last day
of our fiscal year, for our named executive officers. No named
executive officer held stock options as of December 31,
2010.
|
|
|
|
|
|
|
|
|
|
|
Stock Awards
|
|
|
Equity Incentive
|
|
Equity Incentive
|
|
|
Plan Awards:
|
|
Plan Awards:
|
|
|
Number of
|
|
Market or Payout
|
|
|
Unearned
|
|
Value of Unearned
|
|
|
Shares,
|
|
Shares, Units
|
|
|
Units or Other
|
|
or Other Rights
|
|
|
Rights That Have
|
|
that Have
|
Name
|
|
Not Vested (#)
|
|
Not Vested ($)
|
|
James A. Wilhelm
|
|
|
104,000
|
(1)
|
|
|
1,973,920
|
|
G. Marc Baumann
|
|
|
42,000
|
(2)
|
|
|
797,160
|
|
Michael K. Wolf
|
|
|
42,000
|
(3)
|
|
|
797,160
|
|
Steven A. Warshauer
|
|
|
42,000
|
(4)
|
|
|
797,160
|
|
Thomas L. Hagerman
|
|
|
42,000
|
(5)
|
|
|
797,160
|
|
|
|
|
(1) |
|
These RSUs will vest on 2/9/2012. |
|
(2) |
|
These RSUs will vest on 7/16/2015. |
|
(3) |
|
These RSUs will vest on 6/20/2011. |
|
(4) |
|
These RSUs will vest on 11/16/2019. |
|
(5) |
|
These RSUs will vest on 7/1/2020. |
26
Option
Exercises and Stock Vested During 2010
The following table shows the number of shares acquired upon
exercise of options as well as the shares of stock that became
free of restrictions and the value of by each participating
named executive officer during the year ended December 31,
2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards
|
|
Stock Awards
|
|
|
Number of
|
|
|
|
Number of
|
|
|
|
|
Shares
|
|
|
|
Shares
|
|
|
|
|
Acquired on
|
|
Value Realized on
|
|
Acquired on
|
|
Value Realized on
|
Name
|
|
Exercise (#)
|
|
Exercise ($)
|
|
Vesting (#)
|
|
Vesting ($)
|
|
James A. Wilhelm
|
|
|
76,019
|
|
|
|
1,029,352
|
|
|
|
0
|
|
|
|
0
|
|
G. Marc Baumann
|
|
|
13,907
|
|
|
|
161,040
|
|
|
|
0
|
|
|
|
0
|
|
Michael K. Wolf
|
|
|
22,410
|
|
|
|
261,424
|
|
|
|
0
|
|
|
|
0
|
|
Steven A. Warshauer
|
|
|
18,854
|
|
|
|
212,230
|
|
|
|
0
|
|
|
|
0
|
|
Thomas L. Hagerman
|
|
|
1,035
|
|
|
|
11,701
|
|
|
|
0
|
|
|
|
0
|
|
Option
Re-Pricing
We have not engaged in any option re-pricings or other
modifications to any of our outstanding equity awards during
fiscal year 2010.
Pension
Benefits
The following table describes pension benefits to our
participating named executive officers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years of Credited
|
|
Present Value of
|
|
Payments During Last
|
Executive
|
|
Plan Name
|
|
Service
|
|
Accumulated Benefit
|
|
Fiscal Year
|
|
James A. Wilhelm
|
|
Deferred
Compensation
Agreement
|
|
|
(1
|
)
|
|
$
|
777,292
|
|
|
|
|
|
|
|
|
(1) |
|
The benefit provided under Mr. Wilhelms SERP is not
based on a credited service calculation or vesting but rather is
a fixed benefit payable at age 65 subject to certain
restrictions contained in the Compensation Discussion and
Analysis under the section titled Retirement Benefits and
Deferred Compensation Opportunities. |
Nonqualified
Defined Contribution and Other Nonqualified Deferred
Compensation Plans
Our named executive officers participated in a Deferred
Compensation Plan that provided each with the opportunity to
defer an amount which, when combined with his 401(k) plan
deferral, will equal the maximum allowable deferral pursuant to
the IRS section 415 limits. The following table sets forth
the nonqualified deferred compensation of our named executive
officers that received such compensation for the fiscal year
ending December 31, 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive
|
|
Registrant
|
|
Aggregate
|
|
Aggregate
|
|
Aggregate
|
|
|
Contributions in
|
|
Contributions
|
|
Earnings in
|
|
Withdrawals/
|
|
Balance at
|
Name
|
|
Last FY ($)(1)
|
|
in Last FY ($)
|
|
Last FY ($)(2)
|
|
Distributions (S)
|
|
Last FYE ($)
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
|
(e)
|
|
(f)
|
|
James A. Wilhelm
|
|
|
55,772
|
|
|
|
4,225
|
|
|
|
3,823
|
|
|
|
0
|
|
|
|
73,971
|
|
G. Marc Baumann
|
|
|
2,206
|
|
|
|
4,225
|
|
|
|
213
|
|
|
|
8,826
|
|
|
|
23,186
|
|
Michael K. Wolf
|
|
|
2,206
|
|
|
|
4,225
|
|
|
|
575
|
|
|
|
22,982
|
|
|
|
31,418
|
|
Steven A. Warshauer
|
|
|
2,220
|
|
|
|
4,225
|
|
|
|
1,220
|
|
|
|
0
|
|
|
|
27,209
|
|
Thomas L. Hagerman
|
|
|
1,753
|
|
|
|
1,579
|
|
|
|
554
|
|
|
|
12,818
|
|
|
|
39,641
|
|
27
|
|
|
(1) |
|
The amounts included in column (b) are included as Salary
in column (c) of the Summary Compensation Table. |
|
(2) |
|
The amounts included in column (c) are included as All
Other Compensation in column (i) of the Summary
Compensation Table. |
Potential
Payments on Termination or Change in Control
Potential
Payments to Chief Executive Officer
Pursuant to Mr. Wilhelms employment agreement, if he
is terminated for any reason, we are obligated to pay him or his
estate, as applicable, an amount equal to his base salary earned
through the date of termination plus accrued but unused vacation
pay and other benefits earned through the date of termination.
In addition, we are required to make the following payments to
Mr. Wilhelm:
|
|
|
|
|
if his termination occurs for any reason other than
(i) cause, (ii) performance reasons, (iii) his
voluntarily resignation without good reason (as defined in his
employment agreement) or (iv) his disability, an amount
equal to five times the sum of his most recent annual base
salary plus the amount of any annual bonus paid to him for the
immediately preceding calendar year, payable in equal monthly
installments over a period of 60 months;
|
|
|
|
if we terminate him for cause, an amount equal to $100,000,
payable in equal monthly installments over a period of
18 months; and
|
|
|
|
if we terminate him because of performance reasons or he
voluntarily terminates his employment without good reason (as
defined in his employment agreement), an amount equal to his
annual base salary in effect at the date of termination, payable
in equal monthly installments over a period of 18 months.
|
If Mr. Wilhelms employment is terminated before he
attains age 58 (other than for cause or performance
reasons), he may elect to have the policies assigned to him or
he may elect to have us maintain the policies, provided that the
cost of maintaining such policies shall be
Mr. Wilhelms obligation (subject to our payment of
all policy premiums for each year beyond age 55 that
Mr. Wilhelm continues to be employed, or is deemed to have
been employed, by us). If Mr. Wilhelms employment is
terminated at any time as a result of his disability, he may
elect to have one hundred percent (100%) of our ownership
interest in the annuity policies assigned to him or require us
to maintain the policies, with the cost of such maintenance to
be borne by us. Notwithstanding the foregoing, (a) if
Mr. Wilhelms employment is terminated as the result
of his death prior to attaining age 58 or he dies prior to
his acquiring ownership in the annuity policies, we shall pay
his beneficiary the full death benefits payable under the
policies as reduced by the greater of (i) the total
premiums paid by us in connection with such policies or
(ii) the present value of future benefits provided by such
policies, and (b) if Mr. Wilhelms employment is
terminated as the result of his death after attaining
age 58 or at any time after he has acquired ownership of
any of the annuity policies, we shall pay his beneficiary,
without reduction, the full death benefits payable under all
annuity policies that have not previously been acquired by
Mr. Wilhelm.
Potential
Payments to Other Named Executive Officers
Each of our employment agreements with Messrs. Baumann,
Wolf, Warshauer and Hagerman is terminable by us for cause. If
their employment is terminated by reason of their death, we are
obligated to pay their respective estates an amount equal to the
base salary earned through the end of the calendar month in
which death occurs, plus any earned and unpaid annual bonus,
vacation pay and other benefits earned through the date of
termination. If the employment of Messrs. Wilhelm, Baumann,
Wolf, Warshauer or Hagerman is terminated by reason of their
disability, we are obligated to pay him or his legal
representative an amount equal to his annual base salary for the
duration of the employment period in effect on the date of
termination, reduced by amounts received under any disability
benefit program, plus any earned and unpaid annual bonus,
vacation pay and other benefits earned through the date of
termination. Upon termination of the employment
28
of Messrs. Baumann, Wolf, Warshauer or Hagerman for any
reason other than cause or the executives voluntary
resignation without good reason, we must (i) pay the
executive, for a period of 24 months following termination,
payments at the rate of the executives most recent annual
base salary and annual target bonus, and (ii) provide the
executive
and/or his
family with certain other benefits. Upon termination of the
employment of Messrs. Baumann, Wolf, Warshauer or Hagerman
for cause or by reason of the executives voluntary
resignation without good reason, we must pay the executive the
sum of $50,000 over a
12-month
period.
Messrs. Baumann, Wolf, Warshauer and Hagerman are subject
to non-competition and non-solicitation agreements for
24 months following termination of their employment.
Post-Employment Payments The following table
describes certain potential payments and benefits upon
termination for Mr. Wilhelm, our President and Principal
Executive Officer as if his employment terminated as of
December 31, 2010, the last business day of the fiscal year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voluntary
|
|
|
|
|
|
|
|
|
Resignation
|
|
|
|
|
|
|
|
|
Not for Good
|
|
|
|
|
|
|
|
|
Reason or
|
|
|
|
Termination by
|
|
|
|
|
Termination by
|
|
|
|
Company Not
|
|
|
|
|
Company for
|
|
Voluntary
|
|
for Cause or
|
|
Termination
|
|
|
Performance
|
|
Resignation for
|
|
Performance
|
|
by Company
|
Compensation Component
|
|
Reasons ($)
|
|
Good Reason ($)
|
|
Reasons ($)
|
|
for Cause ($)
|
|
Compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base salary
|
|
|
640,191
|
(1)
|
|
|
4,200,955
|
(2)
|
|
|
4,200,955
|
(2)
|
|
|
100,000
|
(1)
|
Cash incentive
|
|
|
|
|
|
|
200,000
|
(3)
|
|
|
200,000
|
(3)
|
|
|
|
|
Stock Options Unvested and Accelerated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit and Perquisites
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Benefits
|
|
|
|
|
|
|
75,505
|
(4)
|
|
|
75,505
|
(4)
|
|
|
|
|
Total
|
|
|
640,191
|
|
|
|
4,476,460
|
|
|
|
4,476,460
|
|
|
|
100,000
|
|
|
|
|
(1) |
|
Payable as salary continuation over 18 months. |
|
(2) |
|
Payable as salary continuation over 60 months. |
|
(3) |
|
Target incentive is included within calculation of base salary
per employment agreement severance provision. |
|
(4) |
|
Estimated cost of health insurance coverage continuation for
60 months computed at current premium. |
Post-Employment Payments The following table
describes certain potential payments and benefits upon
termination for Mr. Baumann, our Principal Financial
Officer, as if his employment terminated as of December 31,
2010, the last business day of the fiscal year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voluntary
|
|
|
|
|
|
|
|
|
|
|
|
|
Resignation Not
|
|
|
Voluntary
|
|
|
Termination by
|
|
|
Termination
|
|
|
|
for Good
|
|
|
Resignation for
|
|
|
Company Not
|
|
|
by Company
|
|
Compensation Component
|
|
Reason ($)
|
|
|
Good Reason ($)
|
|
|
for Cause ($)
|
|
|
for Cause ($)
|
|
|
Compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base salary
|
|
|
50,000
|
(1)
|
|
|
875,186
|
(2)
|
|
|
875,186
|
(2)
|
|
|
50,000
|
(1)
|
Target cash incentive
|
|
|
|
|
|
|
306,315
|
(2)
|
|
|
306,315
|
(2)
|
|
|
|
|
Stock Options Unvested and Accelerated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and Perquisites
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Benefits
|
|
|
|
|
|
|
26,427
|
(3)
|
|
|
26,427
|
(3)
|
|
|
|
|
Insurance funding
|
|
|
|
|
|
|
798,254
|
(4)
|
|
|
798,254
|
(4)
|
|
|
|
|
Total
|
|
|
50,000
|
|
|
|
2,006,182
|
|
|
|
2,006,182
|
|
|
|
50,000
|
|
29
|
|
|
(1) |
|
Payable as salary continuation for 12 months. |
|
(2) |
|
Payable as salary continuation for 24 months. |
|
(3) |
|
Estimated cost of health insurance coverage continuation until
October 1, 2012 computed at current premium. |
|
(4) |
|
Estimated cost of certain life insurance policy payments
computed based on 2011 premiums. |
Post-Employment Payments The following table
describes certain potential payments and benefits upon
termination for Mr. Wolf, an Executive Vice President, as
if his employment terminated as of December 31, 2010, the
last business day of the fiscal year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voluntary
|
|
|
|
|
|
|
|
|
|
|
|
|
Resignation Not
|
|
|
Voluntary
|
|
|
Termination by
|
|
|
Termination
|
|
|
|
for Good
|
|
|
Resignation for
|
|
|
Company Not
|
|
|
by Company
|
|
Compensation Component
|
|
Reason ($)
|
|
|
Good Reason ($)
|
|
|
for Cause ($)
|
|
|
for Cause ($)
|
|
|
Compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base salary
|
|
|
50,000
|
(1)
|
|
|
784,342
|
(2)
|
|
|
784,342
|
(2)
|
|
|
50,000
|
(10)
|
Target cash incentive
|
|
|
|
|
|
|
190,000
|
(2)
|
|
|
190,000
|
(2)
|
|
|
|
|
Stock Options Unvested and Accelerated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and Perquisites
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Benefits
|
|
|
|
|
|
|
15,672
|
(3)
|
|
|
15,672
|
(3)
|
|
|
|
|
Insurance / investment funding
|
|
|
248,000
|
(4)
|
|
|
248,000
|
(4)
|
|
|
248,000
|
(4)
|
|
|
248,000
|
(4)
|
Total
|
|
|
298,000
|
|
|
|
1,238,014
|
|
|
|
1,238,014
|
|
|
|
298,000
|
|
|
|
|
(1) |
|
Payable as salary continuation for 12 months. |
|
(2) |
|
Payable as salary continuation for 24 months. |
|
(3) |
|
Estimated cost of health insurance coverage continuation until
March 26, 2012 computed at current premium. |
|
(4) |
|
Cost of certain life insurance or other investment vehicle
payments until age 65. |
Post-Employment Payments The following table
describes certain potential payments and benefits upon
termination for Mr. Warshauer, an Executive Vice President,
as if his employment terminated as of December 31, 2010,
the last business day of the fiscal year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voluntary
|
|
|
|
|
|
|
|
|
Resignation Not
|
|
Voluntary
|
|
Termination by
|
|
Termination
|
|
|
for Good
|
|
Resignation for
|
|
Company Not
|
|
by Company
|
Compensation Component
|
|
Reason ($)
|
|
Good Reason ($)
|
|
for Cause ($)
|
|
for Cause ($)
|
|
Compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base salary
|
|
|
50,000
|
(1)
|
|
|
880,815
|
(2)
|
|
|
880,815
|
(2)
|
|
|
50,000
|
(1)
|
Target cash incentive
|
|
|
|
|
|
|
183,600
|
(2)
|
|
|
183,600
|
(2)
|
|
|
|
|
Stock Options Unvested and Accelerated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and Perquisites
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Benefits
|
|
|
|
|
|
|
13,481
|
(3)
|
|
|
13,481
|
(3)
|
|
|
|
|
Total
|
|
|
50,000
|
|
|
|
1,077,896
|
|
|
|
1,077,896
|
|
|
|
50,000
|
|
|
|
|
(1) |
|
Payable as salary continuation over 12 months subject to
compliance with covenant not to compete. |
|
(2) |
|
Payable as salary continuation over 24 months subject to
compliance with covenant not to compete. |
|
(3) |
|
Estimated cost of health insurance coverage continuation through
December 31, 2011 computed at current premium. |
30
Post-Employment Payments The following table
describes certain potential payments and benefits upon
termination for Mr. Hagerman, an Executive Vice President
and our chief operating officer, as if his employment terminated
as of December 31, 2010, the last business day of the
fiscal year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voluntary
|
|
|
|
|
|
|
|
|
Resignation Not
|
|
Voluntary
|
|
Termination by
|
|
Termination
|
|
|
for Good
|
|
Resignation for
|
|
Company Not
|
|
by Company
|
Compensation Component
|
|
Reason ($)
|
|
Good Reason ($)
|
|
for Cause ($)
|
|
for Cause ($)
|
|
Compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base salary
|
|
|
50,000
|
(1)
|
|
|
823,502
|
(2)
|
|
|
823,502
|
(2)
|
|
|
50,000
|
(1)
|
Target cash incentive
|
|
|
|
|
|
|
240,000
|
(2)
|
|
|
240,000
|
(2)
|
|
|
|
|
Stock Options Unvested and Accelerated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and Perquisites
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Benefits
|
|
|
|
|
|
|
17,329
|
(3)
|
|
|
17,329
|
(3)
|
|
|
|
|
Total
|
|
|
50,000
|
(1)
|
|
|
1,080,831
|
|
|
|
1,080,831
|
|
|
|
50,000
|
|
|
|
|
(1) |
|
Payable as salary continuation over 12 months subject to
compliance with covenant not to compete. |
|
(2) |
|
Payable as salary continuation over 24 months subject to
compliance with covenant not to compete. |
|
(3) |
|
Estimated cost of health insurance coverage continuation through
December 31, 2011 computed at current premium. |
DIRECTOR
COMPENSATION
Director
Compensation Disclosure Table
The following table sets forth the compensation earned, awarded
or paid for services rendered to us for the fiscal year ending
December 31, 2010 by our non-executive directors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Earned or
|
|
Stock Awards
|
|
All Other
|
|
|
Name
|
|
Paid in Cash ($)
|
|
($)(3)
|
|
Compensation ($)
|
|
Total ($)
|
|
Charles L. Biggs
|
|
|
94,167
|
|
|
|
55,000
|
|
|
|
|
|
|
|
149,167
|
|
Karen M. Garrison
|
|
|
90,000
|
|
|
|
55,000
|
|
|
|
|
|
|
|
145,000
|
|
John V. Holten(1)(2)
|
|
|
22,500
|
|
|
|
|
|
|
|
|
|
|
|
22,500
|
|
Robert S. Roath
|
|
|
94,166
|
|
|
|
80,000
|
|
|
|
|
|
|
|
174,167
|
|
Michael J. Roberts
|
|
|
42,500
|
|
|
|
55,000
|
|
|
|
|
|
|
|
97,500
|
|
Timothy J. White(1)
|
|
|
20,000
|
|
|
|
|
|
|
|
|
|
|
|
20,000
|
|
|
|
|
(1) |
|
Served as a director until April 28, 2010. |
|
(2) |
|
All compensation earned after termination as an executive
officer on October 5, 2009. |
|
(3) |
|
Represents the aggregate grant date fair value computed in
accordance with FASB ASC Topic 718. |
In 2010 Charles L. Biggs, Karen M. Garrison, and Robert S. Roath
each received $30,000 in cash as an annual retainer. Michael J.
Roberts received $17,446 in cash as the pro-rated portion of the
annual retainer from his election date.
Messrs. Biggs, Roath and Roberts and Ms. Garrison
received a fully vested stock grant of 3,223 shares of
common stock on April 29, 2010. Mr. Roath received a
fully vested stock grant of 1,504 shares of common stock on
September 22, 2010 for his service as Chairman of the
Board. All of the directors, except Mr. Wilhelm, received
$2,500 for each board or committee meeting that he or she
attended. All directors received reimbursement for expenses
incurred in connection with such meetings. The Chair of the
Audit Committee received an additional annual retainer of
$20,000, and the chair of the Nominating & Corporate
Governance Committee and Chair of the Compensation Committee
each received an additional retainer of $10,000 per year.
31
TRANSACTIONS
WITH RELATED PERSONS AND CONTROL PERSONS
The following is a summary of transactions during 2010, or
currently proposed transactions, between the Company and our
executive officers, directors, nominees, principal stockholders
and other related persons involving amounts in excess of
$120,000. The Audit Committee has approved each of the
transactions with a related person described below.
In 2010 we provided property management services for sixteen
separate retail shopping centers and commercial office buildings
in which D&E Parking, Inc. has an ownership interest.
Edward Simmons, an executive officer of Standard Parking, has an
ownership interest in D&E. In consideration of the property
management services we provided for these sixteen properties, we
recorded net management fees totaling $634,000 in 2010.
In 2010 our wholly owned subsidiary, SP Plus Security, Inc.,
formerly known as Preferred Response Security Services, Inc.,
provided security services for two retail shopping centers owned
by D&E. We recorded net management fees amounting to
$30,400 for these security services in 2010. In 2010 we provided
sweeping and power washing for two retail-shopping facilities in
which D&E has an ownership interest. For these services we
recorded net management fees totaling $700 in 2010.
SECURITY
OWNERSHIP
Beneficial
Ownership of Directors and Executive Officers
The following table sets forth information regarding the
beneficial ownership of our common stock as of March 1,
2011, by:
|
|
|
|
|
each of the executive officers named in the Summary
Compensation Table above;
|
|
|
|
each of our directors and nominees for director; and
|
|
|
|
all current directors and executive officers as a group.
|
Beneficial ownership is determined in accordance with the rules
of the Securities and Exchange Commission. In computing the
number of shares beneficially owned by a person and the
percentage ownership of that person, shares of common stock
subject to options held by that person that are currently
exercisable or exercisable within 60 days of March 1,
2011, are deemed issued and outstanding. These shares, however,
are not deemed outstanding for purposes of computing percentage
ownership of each other stockholder.
Except as indicated in the footnotes to this table and subject
to applicable community property laws, each stockholder named in
the table has sole voting and investment power with respect to
the shares shown as beneficially owned by them. This table also
includes shares owned by a spouse as community property.
32
Percentage beneficially owned is based on 15,785,045 shares
of common stock outstanding on March 1, 2011, and is
calculated in accordance with the rules of the Securities and
Exchange Commission. Unless otherwise indicated, the address of
each of the individuals named below is:
c/o Standard
Parking Corporation, 900 North Michigan Avenue, Suite 1600,
Chicago, Illinois 60611.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beneficial Ownership
|
|
|
|
|
|
|
Shares Issuable
|
|
|
|
|
|
|
Number
|
|
|
Pursuant to Options
|
|
|
Percent
|
|
|
|
of Shares
|
|
|
Exercisable Within
|
|
|
Beneficially
|
|
|
|
Beneficially
|
|
|
60 days of March 1,
|
|
|
Owned
|
|
Name of Beneficial Owner
|
|
Owned
|
|
|
2011
|
|
|
(%)
|
|
|
James A. Wilhelm
|
|
|
108,990
|
(1)
|
|
|
|
|
|
|
*
|
|
G. Marc Baumann
|
|
|
55,000
|
(2)(4)
|
|
|
|
|
|
|
*
|
|
Thomas L. Hagerman
|
|
|
43,581
|
(2)(3)
|
|
|
|
|
|
|
|
|
Steven A. Warshauer
|
|
|
51,587
|
(2)
|
|
|
|
|
|
|
*
|
|
Michael K. Wolf
|
|
|
49,893
|
(2)
|
|
|
|
|
|
|
*
|
|
Charles L. Biggs
|
|
|
31,416
|
|
|
|
3,178
|
|
|
|
*
|
|
Karen M. Garrison
|
|
|
26,642
|
|
|
|
15,952
|
|
|
|
*
|
|
Robert S. Roath
|
|
|
64,616
|
|
|
|
3,178
|
|
|
|
*
|
|
Michael J. Roberts
|
|
|
3,223
|
|
|
|
|
|
|
|
|
|
All directors and executive officers as a group (13 persons)
|
|
|
607,093
|
(5)
|
|
|
29,409
|
|
|
|
4.0
|
|
|
|
|
* |
|
Less than 1% of the outstanding shares of common stock. |
|
(1) |
|
Includes 104,000 restricted stock units. |
|
(2) |
|
Includes 42,000 restricted stock units. |
|
(3) |
|
Includes 160 shares of common stock held by
Mr. Hagermans wife. Mr. Hagerman disclaims
beneficial ownership of the shares held by his wife. |
|
(4) |
|
Includes 13,000 shares of common stock held jointly with
Mr. Baumanns wife. |
|
(5) |
|
Includes 9,382 shares of restricted stock and 420,000
restricted stock units issued to the executive officers as a
group. |
Change in
Control
We are unaware of any arrangements, including any pledge by any
person of our securities, the operation of which may at a
subsequent date result in a change of control of our Company.
33
Beneficial
Ownership of More than Five Percent of Common Stock
The following table sets forth information regarding the
beneficial ownership of our common stock as of February 16,
2011, by each person (or group of affiliated persons) who is
known by us to own beneficially 5% or more of our common stock.
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
Percent
|
|
|
Shares
|
|
Beneficially
|
|
|
Beneficially
|
|
Owned
|
Name of Beneficial Owner
|
|
Owned
|
|
(%)*
|
|
Capital Research Global Investors
333 South Hope Street
Los Angeles, CA 90071
|
|
|
1,478,800
|
(1)
|
|
|
9.4
|
|
Janus Capital Management LLC
151 Detroit Street
Denver, Colorado 80206
|
|
|
2,073,782
|
(2)
|
|
|
13.1
|
|
Investment Counselors of Maryland, LLC
803 Cathedral Street
Baltimore, Maryland
21201-5297
|
|
|
825,300
|
(3)
|
|
|
5.2
|
|
Loomis, Sayles & Co., L.P.
One Financial Center
Boston, MA 02111
|
|
|
873,856
|
(4)
|
|
|
5.5
|
|
Schroder Investment Management North America Inc.
875 Third Avenue,
21st
Floor
New York, NY 10022
|
|
|
1,160,600
|
(5)
|
|
|
7.4
|
|
TimesSquare Capital Management, LLC
1177 Avenue of the Americas,
39th Floor
New York, NY 10036
|
|
|
1,235,550
|
(6)
|
|
|
7.8
|
|
Wellington Management Company, LLP
280 Congress Street
Boston, MA 02210
|
|
|
1,261,571
|
(7)
|
|
|
8.0
|
|
|
|
|
* |
|
Percentages based on 15,785,045 shares of common stock
outstanding on March 1, 2011. |
|
(1) |
|
Based solely on information obtained from a Schedule 13G/A
filed by Capital Research Global Investors with the SEC on or
about February 10, 2011. The foregoing has been included
solely in reliance upon, and without independent investigation
of, the disclosures contained in Capital Research Global
Investors Schedule 13G. |
|
(2) |
|
Janus Capital Management LLC has a direct 94.5% ownership stake
in INTECH Investment Management (INTECH) and a
direct 77.8% ownership stake in Perkins Investment Management
LLC (Perkins). Due to the above ownership structure,
holdings for Janus Capital, Perkins and INTECH are aggregated
for purposes of this filing. Janus Capital, Perkins and INTECH
are registered investment advisers, each furnishing investment
advice to various investment companies registered under
Section 8 of the Investment Company Act of 1940 and to
individual and institutional clients (collectively,
Managed Portfolios). |
|
|
|
As a result of its role as investment adviser or
sub-adviser
to the Managed Portfolios, Janus Capital may be deemed to be the
beneficial owner of 2,073,782 shares or 13.2% of the shares
outstanding of Standard Parking common stock held by such
Managed Portfolios. However, Janus Capital does not have the
right to receive any dividends from, or the proceeds from the
sale of, the securities held in the Managed Portfolios and
disclaims any ownership associated with such rights. |
|
|
|
Based solely on information obtained from a Schedule 13G/A
filed by Janus Capital Management LLC and Janus Venture Fund
with the SEC on or about February 14, 2011. The foregoing
has been included solely in reliance upon, and without
independent investigation of, the disclosures contained in the
Schedule 13G/A of Janus Capital Management LLC and Janus
Venture Fund. |
|
(3) |
|
Based solely on information obtained from a Schedule 13G
filed by Investment Counselors of Maryland, LLC with the SEC on
or about January 27, 2011. The foregoing has been included
solely in reliance upon, |
34
|
|
|
|
|
and without independent investigation of, the disclosures
contained in Investment Counselors of Maryland, LLCs
Schedule 13G. |
|
(4) |
|
Based solely on information obtained from a Schedule 13G/A
filed by Loomis, Sayles & Co., L.P. with the SEC on or
about February 14, 2011. The foregoing has been included
solely in reliance upon, and without independent investigation
of, the disclosures contained in Loomis, Sayles & Co.,
LPs Schedule 13G/A. |
|
(5) |
|
Based solely on information obtained from a Schedule 13G/A
filed by Schroder Investment Management North America Inc. with
the SEC on or about February 16, 2011. The foregoing has
been included solely in reliance upon, and without independent
investigation of, the disclosures contained in Schroder
Investment Management North America Inc.s
Schedule 13G/A. |
|
(6) |
|
Based solely on information obtained from a Schedule 13G/A
filed by TimesSquare Capital Management, LLC with the SEC on or
about February 9, 2011. The foregoing has been included
solely in reliance upon, and without independent investigation
of, the disclosures contained in TimesSquare Capital Management,
LLCs Schedule 13G/A. |
|
(7) |
|
Based solely on information obtained from a Schedule 13G
filed by Wellington Management Co., LLP with the SEC on or about
February 16, 2011. The foregoing has been included solely
in reliance upon, and without independent investigation of, the
disclosures contained in Wellington Management Co.s
Schedule 13G. |
PROPOSAL NO.
2 ADVISORY VOTE ON COMPENSATION OF OUR NAMED
EXECUTIVE OFFICERS
As noted in the preceding extensive and comprehensive
discussion, executive compensation is an important matter both
to us and, we believe, to our shareholders. Also, beginning in
2011, under legislation that Congress recently enacted, our
shareholders may approve, on a non-binding, advisory basis, the
compensation of our named executive officers as disclosed in
accordance with the executive compensation disclosure rules of
the SEC. Accordingly, we are seeking input from shareholders
with this advisory vote on the compensation of our named
executive officers as disclosed in the Compensation Discussion
and Analysis section and the accompanying compensation tables
contained in this proxy statement in accordance with the
executive compensation disclosure rules of the SEC.
The Compensation Committee has overseen the development and
implementation of our executive compensation programs. We have
designed our compensation programs to directly link a
significant portion of the compensation of our named executive
officers to defined performance standards that promote balance
between the drive for near-term growth and long-term increase in
shareholder value. The Compensation Committee also designed our
compensation programs to attract, retain and motivate key
executives who are essential to the implementation of our
strategic growth and development strategy.
The Compensation Committee bases its executive compensation
decisions on our core compensation principles, including the
following:
|
|
|
|
|
incentivizing our executives to perform with shareholders
interests in mind;
|
|
|
|
assembling and maintaining a senior leadership team with the
skills necessary to successfully execute our business strategy,
maintain our competitiveness, and continue increasing the
long-term market value of our Company; and
|
|
|
|
balancing awards earned for short-term results with awards
earned for strategic decisions that we expect to sustain our
long-term performance.
|
We believe that our existing compensation programs have been
effective at motivating our key executives, including our named
executive officers, to achieve superior performance and results
for our Company, effectively aligning compensation with
performance results, giving our executives an ownership interest
in our Company so their interests are aligned with our
shareholders, and enabling us to attract and retain talented
executives whose services are in key demand in our industry and
market sectors.
35
With our core compensation principles in mind, the Compensation
Committee took compensation actions including the following:
|
|
|
|
|
approving base salary increases for our named executive officers
in fiscal year 2010 only when our actual and forecasted
financial performance improved, generally targeting the
50th percentile;
|
|
|
|
structuring our annual cash incentive awards for fiscal year
2010 to reflect the forecasted performance of our Company rather
than simply basing the awards on historical results;
|
|
|
|
limiting the number and value of perquisites; and
|
|
|
|
foregoing awards of restricted stock and options.
|
Compensation actions like those described above evidence our
philosophy of aligning executive compensation with Company
performance and increasing long-term shareholder value. We will
continue to design and implement our executive compensation
programs and policies in line with this philosophy to promote
superior performance results and generate greater value for our
shareholders.
The board would like the support of our shareholders for the
compensation of our named executive officers as disclosed in the
Compensation Discussion and Analysis section and the
accompanying compensation tables contained in this proxy
statement. This advisory vote on the compensation of our named
executive officers allows our shareholders to express their
opinions about our executive compensation programs. As we seek
to align our executive compensation programs with our
performance results and shareholders interests, we ask
that our shareholders approve the compensation of our named
executive officers as disclosed in the Compensation Discussion
and Analysis section and the accompanying compensation tables
contained in this proxy statement. Accordingly, for the reasons
we discuss above, the board recommends that shareholders vote in
favor of the following resolution:
RESOLVED, that the shareholders approve, on an
advisory basis, the compensation of the named executive officers
as disclosed in the Compensation Discussion and Analysis section
and compensation tables contained in the 2011 proxy
statement.
Although this advisory vote on the compensation of our named
executive officers is not binding on us, as provided by law, our
board or the Compensation Committee will review and consider the
outcome of this advisory vote and, consistent with our record of
shareholder engagement, will take it into account when making
future compensation decisions for our named executive officers.
OUR BOARD
RECOMMENDS A VOTE FOR
THE ADVISORY (NON-BINDING) VOTE APPROVING EXECUTIVE
COMPENSATION
PROPOSAL NO.
3 ADVISORY VOTE ON THE FREQUENCY OF THE ADVISORY
VOTE ON COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS
Also, beginning in 2011, under the recent legislation that
Congress enacted, our shareholders may approve, on a
non-binding, advisory basis, the frequency of the advisory vote
on the compensation of our named executive officers as disclosed
in accordance with the executive compensation disclosure rules
of the SEC. Shareholders may choose to approve holding an
advisory vote on the compensation of our named executive
officers annually, biennially or triennially. Accordingly, we
are asking shareholders whether the advisory vote should occur
every year, once every two years or once every three years.
The board has considered the frequency of the advisory vote on
the compensation of our named executive officers that it should
recommend. After considering the benefits and consequences of
each option for the frequency of submitting the advisory vote on
the compensation of our named executive officers to
shareholders, the board recommends submitting the advisory vote
on the compensation of our named executive officers to our
shareholders annually.
We believe an annual advisory vote on the compensation of our
named executive officers will allow us to obtain information on
shareholders views of the compensation of our named
executive officers on a more
36
consistent basis. In addition, we believe an annual advisory
vote on the compensation of our named executive officers will
provide our board and the Compensation Committee with frequent
input from shareholders on our compensation programs for our
named executive officers. Finally, we believe an annual advisory
vote on the compensation of our named executive officers aligns
more closely with our objective to engage in regular dialogue
with our shareholders on corporate governance matters, including
our executive compensation philosophy, policies and programs.
For the reasons discussed above, the board recommends that
shareholders vote in favor of holding an advisory vote on the
compensation of our named executive officers at an annual
meeting of shareholders every year. In voting on this advisory
vote on the frequency of the advisory vote on the compensation
of our named executive officers, shareholders should be aware
that they are not voting for or against
the boards recommendation to vote for a frequency of every
year for holding future advisory votes on the compensation of
our named executive officers. Rather, shareholders will be
casting votes to recommend an advisory vote on the compensation
of our named executive officers, which may be every year, once
every two years or once every three years, or they may abstain
entirely from voting on the proposal.
The option on the frequency of the advisory vote on the
compensation of our named executive officers that receives the
most votes from shareholders will be considered by the board and
Compensation Committee as the shareholders recommendation
as to the frequency of future advisory votes on the compensation
of our named executive officers. Although this advisory vote on
the frequency of future advisory votes on the compensation of
our named executive officers is not binding on us, as provided
by law, our board or the Compensation Committee will review and
consider the outcome of this advisory vote and, consistent with
our record of shareholder engagement, will take it into account
when making a determination as to when the advisory vote on the
compensation of our named executive officers will again be
submitted to shareholders for approval at an annual meeting of
shareholders within the next three years.
OUR BOARD
RECOMMENDS THAT YOU SELECT ONE YEAR ON THE
PROPOSAL
RECOMMENDING THE FREQUENCY OF ADVISORY VOTES ON
EXECUTIVE COMPENSATION
PROPOSAL NO.
4 RATIFICATION OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
At its meeting on March 7, 2011, the Audit Committee
recommended the appointment of Ernst & Young LLP as
the independent auditors to audit our consolidated financial
statements for the fiscal year ending December 31, 2011. At
the Annual Meeting, our stockholders will be asked to ratify the
appointment of Ernst & Young LLP as our independent
registered public accounting firm for the fiscal year ending
December 31, 2011. You may cast your vote in favor of or
against this proposal, or you may elect to abstain from voting
your shares.
We expect that one or more representatives of Ernst &
Young LLP will be present at the Annual Meeting. Each of these
representatives will have the opportunity to make a statement,
if he or she desires, and is expected to be available to respond
to any appropriate questions.
OUR BOARD
RECOMMENDS THAT YOU VOTE FOR PROPOSAL 4, THE
RATIFICATION OF
THE APPOINTMENT OF ERNST & YOUNG LLP AS THE
COMPANYS INDEPENDENT AUDITORS FOR THE FISCAL YEAR ENDING
DECEMBER 31, 2011.
AUDIT
COMMITTEE DISCLOSURE
General
The Audit Committee of the board is primarily responsible for
the oversight of the quality and integrity of our accounting and
reporting practices and controls, and our financial statements
and reports; compliance with legal and regulatory requirements;
the independent auditors qualifications and independence;
and the
37
performance of our internal audit function and independent
auditors. A complete description of the Committees
function may be found in its charter, which is attached to the
proxy statement as Appendix A and may also be accessed
through the Corporate Governance section of our website,
accessible through our Investor Relations page at
www.standardparking.com.
Independent
Auditors Fees
The Audit Committee, with the approval of the stockholders,
engaged Ernst & Young LLP to perform an annual audit
of our financial statements for the fiscal year ended
December 31, 2010. The following table describes fees for
professional audit services rendered by Ernst & Young
LLP, our principal accountant, for the audit of our annual
financial statements for the years ended December 31, 2010
and December 31, 2009, and fees billed for other services
rendered by Ernst & Young LLP during these periods.
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Type of Fee
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|
2010
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|
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2009
|
|
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Audit Fees(1)
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$
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844,505
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|
|
$
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1,054,700
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|
Audit-Related Fees(2)
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|
|
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31,700
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Tax Fees
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|
|
|
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All Other Fees(3)
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|
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1,840
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|
|
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1,995
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|
|
|
|
|
|
|
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Total
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$
|
846,345
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|
|
$
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1,088,395
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|
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(1) |
|
Audit Fees include the aggregate fees paid by us during the year
indicated for professional services rendered by
Ernst & Young LLP for the audit of our annual
financial statements and review of financial statements included
in our
Forms 10-Q
and
Form 10-K
and review of registration statements and issuance of consents.
In 2010, Audit Fees also included review of Comfort Letter
Procedures in the amount of $104,500. In 2009, Audit Fees also
included review of
Form S-3
registration statements and related prospectus supplement and
issuance of consents in the amount of $239,200. |
|
(2) |
|
Audit-Related Fees include the aggregate fees paid by us during
the year indicated for assurance and related services by
Ernst & Young LLP that are reasonably related to the
performance of the audit or review of our financial statements
and not included in Audit Fees, including general accounting
advice and opinions related to various employee benefit plans
and due diligence related to mergers and acquisitions. For 2009,
Audit Related Fees consists of 401(k) audit fees. |
|
(3) |
|
All Other Fees include the aggregate fees paid by us during the
year indicated for products and services provided by
Ernst & Young LLP, other than the services reported
above. In 2010 and 2009, All Other Fees consists of fees related
to online research tools. |
Procedures
for Audit Committee Pre-Approval of Audit and Permissible
Non-Audit Services of Independent Auditor
Pursuant to our pre-approval policy and procedures, the Audit
Committee was responsible for reviewing and approving, in
advance, any audit and any permissible non-audit engagement or
relationship between the Company and our independent auditors.
The Audit Committee has responsibility for appointing, setting
compensation for and overseeing the work of our independent
auditors, and has established a policy concerning the
pre-approval of services performed by our independent auditors.
Each proposed engagement not specifically identified by the
Securities and Exchange Commission as impairing independence is
evaluated for independence implications prior to entering into a
contract with the independent auditor for such services. The
Audit Committee has approved in advance certain permitted
services whose scope is consistent with auditor independence.
These services are the audit of our annual financial statements
and review of financial statements included in our
Forms 10-Q
and
Form 10-K,
and 401(k) Plan audit for 2011 was approved by the Audit
Committee on March 7, 2011. Additionally, each permissible
audit and non-audit engagement or relationship between us and
Ernst & Young LLP entered into since December 1,
2002 has been reviewed and approved by the board or the Audit
Committee, as provided in our pre-approval policies and
procedures.
38
We have been advised by Ernst & Young LLP that
substantially all of the work done in conjunction with its 2010
audit of our financial statements for the most recently
completed year was performed by permanent, full-time employees
and partners of Ernst & Young LLP. We have received
confirmation and a letter from Ernst & Young LLP
required by applicable requirements of the Public Company
Accounting Oversight board regarding Ernst & Young
LLPs communications with the Audit Committee concerning
independence, and discussed with Ernst & Young LLP its
independence.
Report of
the Audit Committee
In connection with the financial statements for the fiscal year
ended December 31, 2010, our Audit Committee has been
focused on several topics, including:
(i) overseeing our Section 404 internal controls
project, including a review and assessment of the scope,
principles, plans, risk areas and budget for the project and
direct discussions with our independent auditors and our
internal audit department;
(ii) reviewing and assessing our internal audit,
controllership and finance functions;
(iii) reviewing our risk management efforts, including its
insurance and our compliance program and related investigations;
(iv) discussing with Ernst & Young LLP and
management accounting topics, proposed rules of the Public
Company Accounting Oversight board, and a review of our critical
accounting policies;
(v) monitoring the processes by which our CEO, CFO and
Corporate Controller certify the information contained in our
quarterly and annual filings;
(vi) reviewing and approving our policy regarding the
retention of auditors and considering and approving such
retentions as appropriate;
(vii) reviewing our approach toward establishing reserves;
(viii) reviewing and discussing with management each of our
quarterly financial statements and our audited financial
statements for 2010, and related issues and disclosure items,
along with a discussion with Ernst & Young LLP of
those matters identified by the Statement of Auditing Standards
board Standard No. 61, as amended, Communication with
the Audit Committee, and our related press releases in
connection with our quarterly reports and discussed and reviewed
the results of Ernst & Young LLP examination of the
financial statements; and
(ix) discussing with Ernst & Young LLP its
written disclosure letter as required by the Independence
Standards board Standard No. 1, Independence
Discussions with Audit Committees, and discussing its
independence and related issues.
As part of its oversight role and in reliance upon its reviews
and discussions as outlined above, the Audit Committee
recommended, and the board approved, the inclusion of our
audited financial statements in our Annual Report on
Form 10-K
for the fiscal year ended December 31, 2010 for filing with
the SEC and presentation to our stockholders. The Audit
Committee also recommended that Ernst & Young LLP be
re-appointed as our independent auditors to serve until the 2012
annual meeting of stockholders, and that the board submit this
appointment to our stockholders for approval at the Annual
Meeting.
THE AUDIT COMMITTEE
Charles L. Biggs (Chair)
Karen M. Garrison
Michael J. Roberts
39
SECTION 16(a)
BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934, as
amended, requires our directors, executive officers and persons
who beneficially own more than 10% of our equity securities to
file with the Securities and Exchange Commission initial reports
of beneficial ownership of the common stock and reports of
changes in their beneficial ownership and to furnish us with
copies of those reports.
To our knowledge, based solely upon a review of copies of
reports furnished to us or written representations from certain
reporting persons, we believe that during 2010, all
Section 16(a) filing requirements applicable to our
officers, directors and 10% stockholders were met in a timely
manner, except in the following instances:
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|
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G. Marc Baumann had one late filing covering one transaction.
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Charles L. Biggs had one late filing covering one transaction.
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Karen M. Garrison had one late filing covering one transaction.
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Thomas L. Hagerman had one late filing covering one transaction.
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John V. Holten had one late filing covering two transactions.
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Gerard M. Klaisle one late filing covering one event and one
late filing covering one transaction.
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Daniel R. Meyer had one late filing covering one transaction.
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John Ricchiuto had one late filing covering one transaction.
|
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Robert S. Roath had one late filing covering one transaction.
|
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Robert N. Sacks had one late filing covering one transaction.
|
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Edward E. Simmons had one late filing covering one transaction.
|
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Michael E. Swartz had one late filing covering one transaction.
|
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Steven A. Warshauer had one late filing covering one transaction.
|
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James A. Wilhelm had two late filings covering one transaction.
|
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Michael K. Wolf had two late filings covering four transactions.
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SUBMISSION
OF FUTURE STOCKHOLDER PROPOSALS
If any stockholder intends to present a proposal to be
considered for inclusion in our proxy material in connection
with our next annual meeting, the proposal must be in proper
form (per SEC Regulation 14A,
Rule 14a-8
Stockholder Proposals), and received by our General Counsel on
or before December 6, 2011, the date that is 120 calendar
days before the anniversary of the release date of this proxy
statement. Stockholder proposals to be presented at our next
annual meeting that are not to be included in our proxy
materials must be received by us no earlier than
November 29, 2011, nor later than December 29, 2011,
in accordance with the procedures set forth in our by-laws. Any
stockholder who wishes to submit a stockholder proposal should
send it to the General Counsel and Secretary, Standard Parking
Corporation, 900 N. Michigan Ave., Suite 1600,
Chicago Illinois 60611.
40
INCORPORATION
BY REFERENCE
To the extent that this proxy statement is incorporated by
reference into any other filing under the Securities Act or the
Exchange Act, the sections of this proxy statement entitled
Report of the Audit Committee (to the extent
permitted by the rules of the SEC), Report of the
Compensation Committee, and Report of the
Nominating & Corporate Governance Committee will
not be deemed incorporated, unless specifically provided
otherwise in that other filing.
THE BOARD
OF DIRECTORS
Chicago, April 5, 2011
STANDARD
PARKING CORPORATION
41
APPENDIX A
STANDARD
PARKING CORPORATION
Audit
Committee Charter
Adopted
by the Board the
1ST day
of December, 2010.
Organization
The Board of Directors (the Board) of Standard
Parking Corporation (the Company) shall appoint
annually an audit committee (the Committee) composed
of not less than three non-employee, independent members of the
Board, i.e., those directors who neither are officers or
employees of the Company or its subsidiaries nor have a
relationship which, in the opinion of the Board, would interfere
with the exercise of independent judgment in carrying out the
responsibilities of a director, and each of whom is otherwise
independent under the rules of the The NASDAQ Stock
Market, Inc. (NASDAQ), a non-employee
director within the meaning of
Rule 16b-3
of the Securities Exchange Act of 1934 and an outside
director within the meaning of Section 162(m) of the
Internal Revenue Code. In addition, a member of the Committee
may not (i) accept any consulting, advisory or other
compensatory fee from the Company other than in his or her
capacity as a member of the Board or any committee of the Board;
(ii) be an affiliate of the Company or own or control 10%
or more of the Companys voting securities, or such lower
measurement as may be established by the Securities and Exchange
Commission (SEC); and (iii) participate in the
preparation of the financial statements of the Company or any
subsidiary at any time during the past three years.
The Board, by resolution of a majority of the non-employee
directors, shall appoint (and may remove) the members of the
Committee. All members of the Committee must be able to read and
understand fundamental financial statements, including a
companys balance sheet, income statement, and cash flow
statement, and the Committee shall determine that at least one
member is an audit committee financial expert, as
defined by Item 407(d)(5) of SEC
Regulation S-K,
as it may be modified or supplemented.
The Board, by resolution of a majority of the non-employee
directors, shall designate one member of the Committee to act as
the Chairperson of the Committee. The Committee member so
designated shall (i) chair all the meetings of the
Committee; and (ii) perform such other activities as from
time to time are requested by the other directors or as
circumstances indicate.
The Committee shall serve at the discretion of the Board, and
the Board shall have the power at any time to change the
membership of the Committee and to fill vacancies on the
Committee, subject to the independence, experience and financial
expertise requirements referred to above.
The Committee will ordinarily meet at least quarterly each year,
generally in advance of the release of quarterly financial
statements, and at any additional time as either the Board or
the members of the Committee deem necessary. In addition, the
Committee will meet on a periodic basis with management, the
director of the internal auditing department and the independent
public accountant to discuss any matters that the Committee or
any of these persons or firms believes should be discussed. The
Committee may request any officer or employee of the Company or
the Companys outside counsel or independent public
accountant to attend a meeting of the Committee or to meet with
any members of, or consultants to, the Committee. The
Chairperson has the power to call a Committee meeting whenever
he or she determines there is a need. Meetings will follow an
agenda and approved minutes of the meeting will be maintained
and distributed to each director of the Company after each
meeting. The Committee will require that the independent
accountants be available to meet with the full Board at least
annually. The operation of the Committee shall be subject to the
by-laws of the Company as in effect from time to time and
Section 141 of the Delaware General Corporation Law.
The Committee shall meet in separate executive sessions
following each Committee meeting. During at least some portion
of each executive session, no non-Committee member or member of
the Corporations management shall be present.
A-1
Purpose
The primary function of the Committee is to assist and guide the
Board in fulfilling its oversight responsibilities to the
Companys stockholders with respect to (i) the
Companys corporate accounting and financial reporting
practices; (ii) the Companys compliance with legal
and regulatory requirements; (iii) the independent public
accountants qualifications and independence; (iv) the
performance of the Companys internal audit function and
independent public accountant; (v) the quality and
integrity of the Companys financial statements and
reports, (vi) reviewing and approving all audit engagement
fees and terms, as well as all non-audit engagements with the
independent public accountant; (vii) approving the report
that management produces which the rules of the SEC require be
included in the Companys annual proxy statement; and
(viii) oversight of the Companys Code of Business
Conduct and Ethics as applied to the Companys directors
and executive officers. The policy of the Committee, in
discharging these obligations, shall be to maintain and foster
an open avenue of communication between the Committee and the
independent public accountant, the Companys financial
management and internal auditors.
Oversight
of the Independent Public Accountant
The function of the Committee is oversight. The management of
the Company is responsible for the preparation, presentation and
integrity of the Companys financial statements. Management
is responsible for maintaining appropriate accounting and
financial reporting principles and policies and internal
controls and procedures that provide for compliance with
accounting standards and applicable laws and regulations and the
internal audit department is responsible for testing and
reporting on internal controls and procedures. The independent
public accountant is responsible for planning and carrying out a
proper audit of the Companys annual financial statements,
reviews of the Companys quarterly financial statements
prior to the filing of each quarterly report on
Form 10-Q
and other procedures. In fulfilling their responsibilities
hereunder, it is recognized that members of the Committee are
not full-time employees of the Company and are not, and do not
represent themselves to be, performing the functions of auditors
or accountants. As such, it is not the duty or responsibility of
the Committee or its members to conduct field work
or other types of auditing or accounting reviews or procedures
or to set auditor independence standards.
The independent public accountant for the Company is accountable
to the Board and the Committee, as representatives of the
stockholders. The Committee is directly responsible for the
appointment, fees, retention and oversight of the work of the
independent public accountant (including resolving disagreements
between management and the auditors regarding financial
reporting). The Committee has the authority and responsibility
to appoint, retain and terminate the Companys independent
public accountant. The Companys independent public
accountant shall report directly to the Committee.
The independent public accountant shall submit to the Committee
annually a formal written statement (the Auditors
Statement) describing (a) the auditors internal
quality-control procedures; (b) any material issues raised
by the most recent internal quality control review or peer
review of the auditors, or by any inquiry or investigation by
governmental or professional authorities, within the preceding
five years, respecting one or more independent audits carried
out by the auditors, and any steps taken to deal with any such
issues; and (c) (to assess the auditors independence) all
relationships between the independent public accountant and the
Company, including each non-audit service provided to the
Company and consistent with applicable requirements of the
Public Accounting Oversight Board regarding the Companys
accountants communication with the Committee concerning
independence.
The independent public accountant shall submit to the Committee
annually a formal written statement of the aggregate fees billed
for each of the last two fiscal years in each of the following
categories: (i) professional services rendered by the
independent public accountant for the audit of the
Companys annual financial statements and review of
financial statements included in the Companys
Form 10-Q
or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements
for those fiscal years; (ii) assurance and related services
by the independent public accountant that are reasonably related
to the performance of the audit or review of the Companys
financial statements; (iii) professional services rendered
by the independent public accountant for tax compliance, tax
advice, and
A-2
tax planning; and (iv) products and services provided by
the independent public accountant, other than services described
in clauses (i), (ii), and (iii). The written statement shall
describe the nature of the services comprising the fees
disclosed under clauses (ii), (iii) and (iv).
Committee
Duties and Responsibilities
In fulfilling its responsibilities, the Committee believes that
its functions and procedures should remain flexible in order to
address changing conditions most effectively. To carry out its
purposes and to implement the policy of the Committee, the
Committee shall have the following responsibilities, duties and
powers:
1. With respect to independent public accountant,
(a) Decide whether to appoint, retain or terminate the
Companys independent public accountant, including sole
authority to approve all audit engagement fees and terms,
including scope, extent and procedures of the audit and the
compensation to be paid for the audit, and to pre-approve all
audit and non-audit services to be provided by the independent
public accountant and to consider whether the outside
auditors provision of non-audit services to the Company is
compatible with maintaining the independence of the outside
auditors. The Committee shall monitor and evaluate the
auditors qualifications, performance and independence on
an ongoing basis, and shall be directly responsible for
overseeing the work of the independent public accountant
(including resolving disagreements between management and the
auditor regarding financial reporting). In conducting such
evaluations, the Committee shall:
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Evaluate the qualifications, performance, and independence of
the independent public accountant and the lead audit partner
and, if so determined by the Committee, recommend that the Board
replace the independent public accountant or the lead partner;
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Review the opinions of management and the Companys
internal auditors in assessing the independent public
accountants qualifications, performance and independence;
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Discuss with management the timing and process for implementing
the rotation of the lead audit partner and the reviewing
partner, which rotation must occur not less than once every five
years, and consider whether there should be a regular rotation
of the audit firm itself; and
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Ensure that the independent public accountant prepares and
delivers annually the Auditors Statement (it being
understood that the independent public accountant is responsible
for the accuracy and completeness of the statement), review such
statement, discuss with the independent public accountant any
relationships or services disclosed (such as the provision of
non-audit related services) in the statement that may impact the
quality of the audit services or the objectivity and
independence of the Companys independent public
accountant, and ensure that the statement delineates all
relationships between the auditors and the Company and any other
items that may be required by the matters set forth in the
applicable requirements of the Public Company Accounting
Oversight Board;
|
(b) Review, upon completion of the audit, the financial
statements to be included in the Companys Annual Report on
Form 10-K;
(c) Confer with the independent public accountant and
senior management of the Company regarding the scope, adequacy
and effectiveness of internal accounting and financial reporting
controls;
(d) Discuss with the independent public accountant the
results of the annual audit, including the auditors
assessment of the appropriateness of the analysis of significant
accounting matters, the reasonableness of significant judgments,
the nature of significant risks and exposures, the adequacy of
the disclosures in the financial statements, and any other
matters required to be communicated to the Committee by the
independent public accountant under generally accepted
accounting standards; and
(e) Obtain from the independent public accountant in
connection with any audit a timely report relating to the
Companys annual audited financial statements describing
all critical accounting policies and practices to be used, and
any material written communications between the independent
public accountant and management, such as any
management letter or schedule of unadjusted
differences.
A-3
2. With respect to the internal accounting department,
(a) Evaluate the cooperation received by the independent
public accountant during their audit examination, including any
restrictions on the scope of their activities or access to
required records, data and information;
(b) As necessary, review the appointment or replacement of
the chief accounting officer; and
(c) Advise the director of internal audit that he or she is
expected to provide the Committee summaries of and, as
appropriate, the significant reports to management prepared by
the internal auditing department relating to internal controls
over financial reporting and managements responses thereto.
3. With respect to financial reporting principles and
polices and internal controls and procedures,
(a) Consider any reports or communications (and
managements
and/or the
internal audit departments responses thereto) submitted to
the Committee by the independent public accountant required by
or referred to in the Public Company Accounting Oversight
Boards interim standard AU 380, Communication with
Audit Committees, as it may be modified or supplemented,
including reports and communications related to:
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deficiencies noted in the audit in the design or operation of
internal controls;
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consideration of fraud in a financial statement audit;
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detection of illegal acts;
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the independent public accountants responsibility under
generally accepted auditing standards;
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any restriction on audit scope;
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significant accounting policies;
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significant issues discussed with the national office respecting
auditing or accounting issues presented by the engagement;
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management judgments and accounting estimates;
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any accounting adjustments arising from the audit that were
noted or proposed by the auditors but were passed (as immaterial
or otherwise);
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the responsibility of the independent public accountant for
other information in documents containing audited financial
statements;
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disagreements with management;
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consultation by management with other accountants;
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major issues discussed with management prior to retention of the
independent public accountant;
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difficulties encountered with management in performing the audit;
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the independent public accountants judgments about the
quality of the entitys accounting principles; and
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reviews of interim financial information conducted by the
independent public accountant.
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(b) Confer with the independent public accountant, the
internal audit team and senior management in separate executive
sessions to discuss any matters that the Committee, the
independent public accountant, the internal audit team or senior
management believe should be discussed privately with the
Committee;
(c) Review with the Companys general counsel any
significant legal, compliance or regulatory matters that could
have a material impact on the Companys financial
statements or the Companys business, financial statements
or compliance policies, including material notices to or
inquiries received from governmental agencies;
A-4
(d) Review procedures for the receipt, retention and
treatment of complaints received by the Company regarding
accounting, internal accounting controls or auditing matters,
and for the confidential, anonymous submission by Company
employees of concerns regarding questionable accounting or
auditing matters;
(e) Investigate any matter brought to the attention of the
Committee within the scope of its duties, with the power to
retain outside counsel and a separate accounting firm for this
purpose if, in the judgment of the Committee, such investigation
or retention is necessary or appropriate;
(f) Discuss the types of financial information and earnings
guidance, and the types of presentations made, to analysts and
rating agencies;
(g) Review hiring policies for employees and former
employees of the independent public accountant. These policies
shall provide that no former employee of the independent public
accountant may become the chief executive officer, chief
financial officer, director of internal audit, chief accounting
officer or controller (or serve in a similar capacity) if such
person participated in any capacity in the Companys audit
within the one-year period preceding the date of the initiation
of the audit;
(h) Review the appointment and replacement of the director
of internal audit who shall report to the Committee;
(i) Approve the compensation for the director of internal
audit;
(j) Discuss with the independent public accountant and the
director of internal audit responsibilities, budget and staffing
and any recommendations regarding the internal audit;
(k) Review the internal audit review committee minutes
prepared by the internal auditing department and
managements responses;
(l) Discuss earnings press releases;
(m) Discuss the Companys major financial risk
exposures, the steps the Company has taken to monitor and
control such exposures, and the Companys financial risk
assessment and risk management policies; and
(n) Discuss the Companys tax strategies and tax
exposures.
4. With respect to reporting and recommendations,
(a) Review managements report of the Committee and
any other disclosures required by the rules of the SEC to be
included in the Companys annual proxy statement and
recommend to the Board that the audited financial statements be
included in the Companys Annual Report on
Form 10-K;
(b) Review and assess the adequacy of this charter annually
and recommend any proposed changes to the Board for approval;
(c) Review with the Board an annual performance evaluation
of the Committee, prepared with Committee oversight, which
evaluation must compare the performance of the Committee with
the requirements of this Charter. The performance evaluation
shall be conducted in such a manner as the Committee deems
appropriate. Any member of the Committee may present the
evaluation to the Board either orally or in writing;
(d) Report to the Board of Directors on a regular basis and
from time to time or whenever it shall be called upon to do so,
and make such recommendations with respect to the above and
other matters as the Committee may deem necessary or appropriate;
(e) Consider any reports submitted by the independent
public accountant required by any applicable law or regulation;
(f) Meet with management, the independent public accountant
and the chief financial officer, the chief accounting officer
and director of internal audit to discuss: the scope of the
annual audit, the audited financial statements and quarterly
financial statements including the Companys disclosures
under Managements Discussion and Analysis of
Financial Condition and Results of Operations; any
significant matters arising
A-5
from any audit, including any audit problems or difficulties,
whether raised by management, the internal auditing department
or the independent public accountant, relating to the
Companys financial statements; any audit problems or
difficulties, including any restrictions on the scope of the
independent public accountants activities or access to
requested information, and any significant disagreements with
management; any management letter or internal
control letter issued, or proposed to be issued; any major
issues regarding accounting principles and financial statement
presentations, including any significant changes to the
Companys auditing and accounting principles, policies,
controls, procedures and practices, and major issues as to the
adequacy of the Companys internal controls and any special
audit steps adopted in light of material control deficiencies;
analyses prepared by management
and/or the
independent public accountant setting forth significant
financial reporting issues and judgments made in connection with
the preparation of the financial statements; and the effect of
regulatory and accounting initiatives, as well as off-balance
sheet structures, on the financial statements of the Company;
(g) Inquire of the Companys chief executive officer,
chief financial officer and chief accounting officer as to the
existence of any significant deficiencies in the design or
operation of internal controls that could adversely affect the
Companys ability to record, process, summarize and report
financial data, any material weaknesses in internal controls,
and any fraud, whether or not material, that involves management
or other employees who have a significant role in the
Companys internal controls; and
(h) Obtain from the independent public accountant assurance
that the audit was conducted in accordance with Section 10A
of the Securities Exchange Act of 1934, as amended.
5. Review and approve a Code of Business Conduct and Ethics
with respect to the business conduct, ethics, and related party
transactions (the Code of Conduct),
(a) Periodically review the Code of Conduct applicable to
the Companys Directors, officers and employees;
(b) Review all requests for waivers of the Code of Conduct
involving Directors, members of the executive staff, and senior
financial advisors;
(c) Review with Company personnel the Companys
programs designed to ensure compliance with the Companys
Code of Conduct; and
(d) Review potential conflict of interest situations and
related party transactions in accordance with the Companys
Related-Person Transactions Policy and approve all transactions
required to be disclosed under Item 404 of SEC
Regulation S-K.
6. With respect to the Companys executive officer in
charge of risk management,
(a) Discuss the Companys major risk exposures and the
steps management has taken to monitor and control such
exposures, including the Companys risk assessment and risk
management policies, including whether:
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the risk appetite implicit in the Companys business model,
strategy and execution is appropriate;
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the expected risks are commensurate with the expected rewards;
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management has effectively implemented a system to manage,
monitor, and mitigate risk, and that system is appropriate given
the Companys business strategy;
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the Companys risk management system informs the Board of
the major risks facing the Company;
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an appropriate culture of risk-awareness exists throughout the
Company; and
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there is recognition that management of risk is essential to the
successful execution of the Companys strategy.
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(b) Promptly report to the Board regarding changes in the
Companys risk profile and report other risk management
issues to the Board as the Committee deems necessary.
A-6
7. Perform such other functions as assigned by the Board
and to have such powers as may be necessary or appropriate in
the efficient and lawful discharge of the foregoing.
Resources
and Authority
The Committee shall have the resources and authority appropriate
to discharge its duties and responsibilities, including the
authority to select, retain, terminate, and approve the fees and
other retention terms of special counsel or other experts or
consultants, as it deems appropriate, without seeking approval
of the Board or management. Except as expressly provided in this
Charter or the by-laws of the Company, or as otherwise provided
by law or the requirements of NASDAQ, the Committee shall fix
its own rules of procedure. The Committee may form and delegate
authority to a subcommittee or any member of the Committee when
appropriate. Without limiting the generality of the foregoing,
the Committee may, in its discretion, delegate to one or more of
its members the authority to pre-approve any audit or non-audit
services to be performed by the independent public accountant,
provided that any such approvals are presented to the Audit
Committee at its next scheduled meeting.
A-7
APPENDIX B
STANDARD
PARKING CORPORATION
Nominating
and Corporate Governance Committee Charter
Organization
The Board of Directors (the Board) shall
appoint annually a nominating and corporate governance committee
(the Committee) and a chairperson thereof.
The Committee shall consist of no fewer than three members. The
Committee shall serve at the pleasure of the Board and the Board
shall have the power at any time to change the membership of the
Committee and to fill vacancies. The composition of the
Committee shall at all times conform to applicable regulations
promulgated by the Securities and Exchange Commission (the
SEC) and the applicable listing standards of
The NASDAQ Stock Market, Inc. (NASDAQ).
Except as expressly provided in this Charter or the by-laws of
the Company, or as otherwise provided by law or the requirements
of NASDAQ, the Committee shall fix its own rules of procedure.
The Committee shall meet twice in advance of an annual meeting
of stockholders or a special meeting of stockholders at which
directors are to be elected. At the first meeting, the Committee
will identify director nominees for consideration by the
Committee and will review any director nominees proposed by the
stockholders. At the second meeting, the Committee will
determine the director nominees to recommend to the Board. The
Committee may meet additional times as the Committee deems
necessary.
Purpose
The Committee shall:
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identify individuals qualified to become directors and recommend
to the full Board the director nominees for each annual meeting
of the Corporations stockholders;
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promptly upon the occurrence of a vacancy on the Board for any
reason, recommend to the full Board director nominees qualified
to fill such vacancy;
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recommend to the full Board directors to serve on each committee
of the Board; and
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develop, recommend to the Board and assess corporate governance
policies.
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Committee
Authority and Responsibilities
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The Committee will have the resources and authority necessary to
discharge its duties and responsibilities, including the
authority to retain outside counsel or other experts or
consultants, as it deems appropriate.
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The Committee shall develop qualification criteria for
directors, and actively seek, interview and screen individuals
qualified to become directors for recommendation to the Board.
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The Committee shall develop procedures for stockholders to
recommend persons as potential director nominees for
consideration by the Committee. The Committee shall review
potential director nominees proposed by stockholders in
accordance with such procedures. In addition, the Committee
shall review director candidates directly nominated by
stockholders for election by the stockholders in accordance with
the Companys bylaws and report to the Board a
recommendation of whether to support or oppose such director
candidates and the reasons for such recommendation.
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The Committee shall recommend director nominees to the full
Board each year for election at the annual meeting of
stockholders. At the time of recommending director nominees to
the Board, the Committee shall inform the Board of the criteria
used in making its recommendations.
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The Committee shall have the sole authority to retain and
terminate any search firm to be used to identify director
candidates and shall have sole authority to approve the search
firms fees and other retention terms. The Committee shall
also have authority to obtain advice and assistance from
internal or external legal, accounting or other advisors.
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The Committee shall recommend to the full Board one or more
director nominee(s) qualified to fill any vacancy in a
directorship, whether resulting from death, resignation,
disqualification, removal or other cause, except that any such
vacancy shall be filled by the stockholders if such vacancy was
caused by the removal of a director by the action of the
stockholders.
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The Committee shall develop and recommend to the Board for its
approval a set of corporate governance guidelines. At least
annually, the Committee shall review the corporate governance
guidelines and recommend to the Board appropriate changes to the
corporate governance guidelines.
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The Committee shall make regular reports to the Board.
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The Committee shall review and reassess the adequacy of this
Charter annually and recommend any proposed changes to the Board
for approval. The Committee shall annually review its own
performance.
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The Committee may form and delegate authority to subcommittees
when appropriate.
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Adopted by the Board the
30th day
of June, 2004.
B-2
APPENDIX C
Standard
Parking Corporation
Compensation
Committee Charter
Adopted
by the Board the
1ST day
of December, 2010.
Organization
The Board of Directors (the Board) of Standard
Parking Corporation (the Company) shall appoint
annually a compensation committee (the Committee)
composed of not less than three non-employee, independent
members of the Board, i.e., those directors who neither
are officers or employees of the Company or its subsidiaries nor
have a relationship which, in the opinion of the Board, would
interfere with the exercise of independent judgment in carrying
out the responsibilities of a director, and each of whom Is
otherwise independent under the rules of the The
NASDAQ Stock Market, Inc. (NASDAQ), a
non-employee director within the meaning of
Rule 16b-3
of the Securities Exchange Act of 1934 and an outside
director within the meaning of Section 162(m) of the
Internal Revenue Code.
The Board, by resolution of a majority of the non-employee
directors, shall appoint (and may remove) the members of the
Committee. All members of the Committee shall be literate in
compensation and benefit-related matters. Such literacy shall be
determined by the Board in its business judgment.
The Board, by resolution of a majority of the non-employee
directors, shall designate one member of the Committee to act as
the Chairperson of the Committee. The Committee member so
designated shall (i) chair all the meetings of the
Committee; (ii) coordinate the evaluation of the
performance of the Chief Executive Officer (CEO);
and (iii) perform such other activities as from time to
time are requested by the other directors or as circumstances
indicate.
The Committee shall serve at the discretion of the Board, and
the Board shall have the power at any time to change the
membership of the Committee and to fill vacancies. The Committee
shall meet at least once annually at such times and places and
by such means as the Chairperson shall determine.
Purpose
The purpose of the Committee is to, among other things, provide
assistance to the corporate directors in fulfilling their
responsibility to the shareholders to ensure that the
Companys executive officers and Board members are
compensated in accordance with the Companys total
compensation objectives and executive compensation policy. The
Committee shall (i) review and determine compensation
policies, strategies, pay levels and forms of compensation
necessary to support organizational objectives; (ii) review
and determine bonuses for officers and other employees,
(iii) review and determine stock-based compensation,
(iv) review and discuss with management the Compensation
Discussion and Analysis (CD&A) to be included
in the proxy statement and annual report of
Form 10-K;
and (v) prepare the Compensation Committee Report regarding
the Committees recommendation that the CD&A be
included in such proxy statement and annual report, in
accordance with applicable rules and regulations of Securities
and Exchange Commission (the SEC).
The Committee shall maintain free and open means of
communication among the Board, any independent consultants, the
internal human resources professionals, and the chief executive
officer of the Company.
Committee
Duties and Responsibilities
The Committees policies should remain flexible to react to
changing conditions and to ensure the Board and shareholders
that: (i) the achievement of the overall goals and
objectives of the Company can be supported by adopting an
appropriate executive compensation policy and implementing it
through an effective total compensation program, and
(ii) the total compensation program and practices of the
Company are designed with full consideration of all accounting,
tax, securities law, and regulatory requirements.
C-1
The Committee shall:
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Review and discuss the CD&A section of the Companys
proxy statement with management.
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Produce an annual report stating it has reviewed and discussed
the CD&A section of the Companys proxy statement with
management.
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Assist the Company in defining a total compensation policy for
its executives that (1) supports the Companys overall
business strategy and objectives, (2) attracts and retains
key executives, (3) links total compensation with business
objectives and organizational performance in good and bad times,
and (4) provides competitive total compensation opportunities at
a reasonable cost while enhancing shareholder value creation.
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Act on behalf of the Board in setting executive compensation
policy, administering compensation plans approved by the Board
and shareholders, and making decisions for the Board with
respect to the compensation of key executives.
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Review and determine the annual base salary levels, annual
incentive opportunity levels, long-term incentive opportunity
levels, executive perquisites, employment agreements (if and
when appropriate), change in control and severance
provisions/agreements (if and when appropriate), benefits, and
supplemental benefits of the CEO, and other executive officers
and key executives of the Company.
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Review and approve corporate goals and objectives relevant to
the CEOs compensation, evaluating the CEOs
performance in light of those goals and objectives, and have the
sole authority to determine the CEOs compensation level
based on this evaluation.
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Evaluate annually the CEOs and other key executives
compensation levels and payouts (including long-term incentives)
against (i) pre-established performance goals and
objectives, including relative shareholder return, (ii) an
appropriate peer group, and (iii) the awards given to the
CEO or other executive in past years.
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Review and assess performance target goals established before
the start of the year and determine when performance goals have
been achieved at the end of the year.
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Administer the compensation program for the CEO, executive
officers, and other key executives and ensure consistency with
executive compensation policy.
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Review and determine incentive plans and equity-based plans that
are consistent with the organizations executive
compensation policy.
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Determine
and/or
approve awards to employees of long-term incentives pursuant to
any of the Companys employee incentive plans and exercise
such other power and authority as may be permitted or required
under such plans, and monitor aggregate equity compensation
share use, dilution and expense.
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Review the retirement plans of the Company and determine any
differences between plan objectives, needs, and current benefit
levels, and approve any amendments.
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Review the group health care benefits provided against benefits
provided by other organizations in the same industry, and
evaluate the sharing of risk and funding for any
self-administered benefits plans as well as the cost and
effectiveness of plan administration.
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Review and approve compensation (fees and equity) for the
non-employee directors.
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Review the management succession program. If succession
responsibility is delegated to another committee, the Committee
should coordinate closely with that committee.
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Keep abreast of current developments in executive compensation
outside the Company.
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C-2
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Review the performance of the Committee annually, which review
should compare its performance with the requirements of this
Charter and should reassess the adequacy of this Charter and
recommend any proposed changes to the Board for approval.
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Review the Companys compensation policies and practices
applicable to all employees as they relate to the Companys
risk management and determine whether the risks arising from
these compensation policies and practices are reasonably likely
to have a material adverse effect on the Company. Such
assessment should be reported to the Board.
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Approve all compensation consultant engagement fees and terms,
including engagements with compensation consultants involving
services in addition to executive and director compensation
(other than any role limited to consulting on any
broad-based plan that does not discriminate in scope, terms or
operation, in favor of executive officer or directors of the
Company, and that is available generally to all salaried
employees; or providing information that either is not
customized for the Company or that is customized based on
parameters that are not developed by the compensation
consultant, and about which the compensation consultant does not
provide advice). The Committee shall consult with management but
shall not delegate these responsibilities, except that the
Chairperson of the Committee shall have the authority to grant
pre-approvals of services by compensation consultants provided
that all pre-approvals by the Chairperson shall be presented to
the full Committee at its next scheduled meeting.
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Assume the responsibility to comply with applicable requirements
as established by the SEC and NASDAQ or other governing
regulatory authority regarding compensation consultants used to
assist in the evaluation of the CEO, other executive officers,
employees or non-employee members of the Board.
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Make regular reports to the Board.
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Resources
and Authority
The Committee shall have the resources and authority appropriate
to discharge its duties and responsibilities, including the
authority to select, retain, terminate, and approve the fees and
other retention terms of special counsel or other experts or
consultants, as it deems appropriate, without seeking approval
of the Board or management. Authority to select, retain,
terminate, and approve the fees and other retention terms of any
compensation consultants retained by the Company shall be vested
solely in the Committee. Except as expressly provided in this
Charter or the by-laws of the Company, or as otherwise provided
by law or the requirements of NASDAQ, the Committee shall fix
its own rules of procedure. The Committee may form and delegate
authority to subcommittees when appropriate.
C-3
6 FOLD AND DETACH HERE AND READ THE REVERSE SIDE 6
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PROXY
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Please mark your
votes like this
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THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR ITEMS 1, 2 AND 4 AND ONE YEAR FOR ITEM 3.
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FOR
ALL
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WITHHOLD
AUTHORITY
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*EXCEPTIONS |
1.
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Election of five directors to serve until the 2012
annual meeting of Standard Parking stockholders,
and until the respective successor of each is duly
elected and qualified.
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01 Charles L. Biggs
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04 Michael J. Roberts |
02 Karen M. Garrison
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05 James A. Wilhelm |
03 Robert S. Roath |
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(INSTRUCTIONS: TO WITHHOLD AUTHORITY TO VOTE FOR ANY
INDIVIDUAL NOMINEE, STRIKE A LINE THROUGH THE NOMINEES NAME.)
Label Area 4 x 1 1/2
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FOR
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AGAINST
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ABSTAIN |
2.
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To consider an advisory vote on compensation of
our named executive officers.
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1 YEAR
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2 YEARS
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3 YEARS
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ABSTAIN |
3.
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To consider an advisory vote on the frequency of
the advisory vote on compensation of our named
executive officers.
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FOR
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AGAINST
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ABSTAIN |
4.
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To appoint Ernst & Young LLP as independent
auditors for fiscal 2011.
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To change your address, please mark this box.
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I plan to attend the Annual Meeting.
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PRINT AUTHORIZATION
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(THIS BOXED AREA DOES NOT PRINT) |
To commence printing on this proxy card please sign, date
and fax this card to this number: 212-691-9013 or email us
your approval.
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Registered Quantity
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Broker Quantity |
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Note: SCOTTI to Email final approved copy for Electronic Voting website setup: Yes o
UPON FINAL APPROVAL
FORWARD INTERNET &
TELEPHONE VOTING
TO
SUNGUARD
WITHOUT THE YELLOW
BOX, BLUE BOX & CROP
MARKS
COMPANY ID:
PROXY NUMBER:
ACCOUNT NUMBER:
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Signature
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Signature
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Date
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, 2011. |
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NOTE: Please sign exactly as name appears hereon, indicating official position or representative capacity, if any. If shares are held jointly, both owners should sign.
Important Notice Regarding the Availability of Proxy Materials for
the Annual Meeting of Stockholders to be held on April 29, 2011.
This Proxy Statement and our 2010 Annual Report to Stockholders are
available at http://www.cstproxy.com/standardparking/2011.
6 FOLD AND DETACH HERE AND READ THE REVERSE SIDE 6
PROXY
STANDARD PARKING CORPORATION
PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF
THE COMPANY FOR THE ANNUAL MEETING ON APRIL 29, 2011
The undersigned hereby constitutes and appoints
Robert N. Sacks, Executive Vice President, General Counsel and Secretary, and Jerome L. Pate, Vice
President and Associate Counsel, or any of them acting in the absence of the other, his or her true and
lawful agents and proxies, with full power of substitution, and hereby authorizes them to represent the
undersigned and to vote for the undersigned as designated on the reverse side, at the Annual Meeting of
Stockholders to be held at the Whitehall Hotel, 105 East Delaware Place, Chicago, IL, on
April 29, 2011, at 8:30 a.m. local time, and at any adjournments thereof, on all matters coming before said meeting.
The undersigned hereby acknowledges receipt of the Notice of
Annual Meeting and proxy statement, both dated April 5, 2011, and hereby revokes any proxy or proxies heretofore
given to vote at said meeting or any adjournment thereof.
YOU ARE ENCOURAGED TO SPECIFY YOUR CHOICE BY MARKING THE
APPROPRIATE BOXES ON THE REVERSE SIDE, BUT YOU NEED NOT MARK ANY BOXES IF YOU WISH TO VOTE IN
ACCORDANCE WITH THE BOARD OF DIRECTORS RECOMMENDATIONS. THE PROXY HOLDERS CANNOT VOTE YOUR SHARES UNLESS
YOU SIGN AND RETURN THIS CARD. ACTION TAKEN PURSUANT TO THIS PROXY CARD WILL BE EFFECTIVE AS TO ALL SHARES THAT YOU OWN.
Important Notice Regarding the Availability of Proxy
Materials for the Annual Meeting of Stockholders to be held on April 29, 2011. This proxy statement and our
2010 Annual Report to Stockholders are available at http://www.cstproxy.com/standardparking/2011.
This proxy when properly executed will be voted in
the manner directed herein. If no direction is made, this proxy will be voted FOR items 1, 2 and 4 and ONE YEAR for item 3. This proxy
will be voted, in the discretion of proxy holders, upon such other business as may properly come before the Annual Meeting or any adjournment thereof.
Please sign, date and return this proxy in the enclosed postage prepaid envelope.
(Continued, and to be marked, dated and signed, on the reverse side)