UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On May 3, 2023, the Board of Directors (the “Board”) of Cogent Communications Holdings, Inc. (the “Company”) appointed Greg W. O’Connor as Vice President and Chief Operating Officer of the Company. Mr. O’Connor, age 52, was previously employed by T-Mobile US, Inc. as Vice President and General Manager for T-Mobile Wireline, from 2021 to April 2023, and oversaw all Wireline operations, including sales, marketing, customer service, and product management. Before that role, he was Vice President of Sprint Corporation’s Core and Access Network from 2015 to 2021. Mr. O’Connor was responsible for planning, engineering, and deploying Sprint’s mobile core, RAN, wireline network, and backhaul for Sprint’s networks worldwide. In his early career, he worked as a software development consultant serving various U.S. government agencies. He is a graduate of Southern Connecticut State University (BS) and Syracuse University (MS).
In connection with his appointment, the Board approved a restricted stock grant of 16,000 shares to Mr. O’Connor. The grant of restricted stock has an initial vest amount of 2,000 shares vesting on March 1, 2025. The remaining shares vest in quarterly installments of 2,000 shares each on June 1, September 1, December 1 and March 1 thereafter, with full vesting occurring on December 1, 2026. The restricted stock has voting rights. The Restricted Stock Award with further terms and conditions is attached hereto as Exhibit 10.1 and is incorporated by reference herein.
As noted below under Item 5.07, at the Company’s Annual Meeting of Stockholders (the “Annual Meeting”) held on May 3, 2023, the Company’s stockholders, upon the recommendation of the Board, approved an amendment and restatement of the Company’s 2017 Incentive Award Plan (as amended and restated, the “A&R Plan”).
The A&R Plan increases the number of shares available for issuance by 1.2 million shares and amends certain provisions related to the minimum vesting of awards for non-employee directors.
A more detailed description of the material terms of the A&R Plan was included in the Company’s Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on March 15, 2023, and such description is hereby incorporated by reference herein. The foregoing and the summary in the Proxy Statement are not complete summaries of the terms of the A&R Plan and are qualified by reference to the text of the A&R Plan, which is included as Exhibit 10.2 hereto and is incorporated by reference herein.
Item 5.07 Submission of Matters to a Vote of Security Holders.
On May 3, 2023, the Company held its Annual Meeting at 2450 N Street NW, Washington, DC 20037. On the record date of March 10, 2023, there were 48,350,027 shares of the Company’s common stock outstanding. The following proposals were submitted to a vote of the stockholders at the Annual Meeting, each of which is described in detail in the Proxy Statement:
Under the first proposal, each of the following nominees were elected to the Board, to hold office until his or her successor is elected and qualified, with the following voting results:
Dave Schaeffer: | FOR: 40,703,286 | AGAINST: 552,418 | ABSTAIN: 13,111 | |
Marc Montagner | FOR: 40,541,891 | AGAINST: 713,606 | ABSTAIN: 13,318 | |
D. Blake Bath: | FOR: 38,736,246 | AGAINST: 2,519,351 | ABSTAIN: 13,218 | |
Steven D. Brooks: | FOR: 39,325,901 | AGAINST: 1,929,686 | ABSTAIN: 13,228 | |
Paul de Sa | FOR: 41,056,241 | AGAINST: 198,812 | ABSTAIN: 13,762 | |
Lewis H. Ferguson, III: | FOR: 39,159,392 | AGAINST: 2,095,674 | ABSTAIN: 13,749 | |
Eve Howard: | FOR: 41,153,844 | AGAINST: 102,050 | ABSTAIN: 12,921 | |
Deneen Howell: | FOR: 41,053,121 | AGAINST: 201,343 | ABSTAIN: 14,351 | |
Sheryl Kennedy: | FOR: 40,117,415 | AGAINST: 1,137,582 | ABSTAIN: 13,818 |
Broker non-votes for the first proposal were 2,535,472 shares.
Stockholders approved the second proposal, approval of an amendment and restatement of the Company’s 2017 Incentive Award Plan. The vote on this second proposal was as follows: FOR: 40,290,197; AGAINST: 953,660; ABSTAIN: 24,958. Broker non-votes for this second proposal were 2,535,472 shares.
Stockholders approved the third proposal, ratifying the appointment of Ernst & Young LLP as the Company’s independent registered public accountants for the fiscal year ending December 31, 2023. The vote on this third proposal was as follows: FOR: 40,985,489; AGAINST: 2,808,777; ABSTAIN: 10,021. Broker non-votes for this second proposal were zero (0) shares.
Stockholders approved the fourth proposal, an advisory vote to approve named executive officer compensation. The vote on this fourth proposal was as follows: FOR: 38,901,256; AGAINST: 2,321,024; ABSTAIN: 46,535. Broker non-votes for this fourth proposal were 2,535,472 shares.
For the fifth proposal, stockholders selected 1 YEAR as the recommended frequency of future stockholder advisory votes to approve named executive officer compensation. The vote on this fourth proposal was as follows: 1 YEAR: 40,356,509; 2 YEARS: 8,844; 3 YEARS: 876,325; ABSTAIN: 27,137. Broker non-votes for this fourth proposal were 2,535,472 shares.
Based on the result of the vote on the fifth proposal, and consistent with the Board’s recommendation, the Board has determined to hold an advisory vote to approve named executive officer compensation every year until the next required advisory vote on the frequency of future advisory votes to approve named executive officer compensation.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit Number |
Description | |
10.1 | Restricted Stock Award, dated as of May 3, 2023, between the Company and Greg W. O’Connor (filed herewith). | |
10.2 | Amended and Restated Cogent Communications Holdings, Inc. 2017 Incentive Award Plan (incorporated by reference to Annex A of the Company’s Definitive Proxy Statement on Schedule 14A filed March 15, 2023 (File No. 000-51829)). | |
104 | Cover Page Data File (the cover page XBRL tags are embedded within the iXBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Cogent Communications Holdings, Inc. | ||
May 4, 2023 | By: | /s/ David Schaeffer |
Name: David Schaeffer | ||
Title: President and Chief Executive Officer |
EXHIBIT 10.1
RESTRICTED STOCK AWARD
Name: Greg W. O’Connor | Cogent Communications Holdings, Inc. |
Grant Date: May 3, 2023 | 2017 Incentive Award Plan (the “Plan”) |
1. Grant: Effective as of the Grant Date specified above you have been granted 16,000 (sixteen thousand) Shares (the “Restricted Shares”) of Cogent Communications Holdings, Inc. (the “Company”) subject to the vesting requirement described below.
2. Normal Vesting: You will become vested in 2,000 Restricted Shares on March 1, 2025 and in an additional 2,000 Restricted Shares on each of June 1, September 1 and December 1 thereafter, with full vesting occurring on December 1, 2026.
3. Accelerated Vesting: Notwithstanding Section 2, you will become fully vested in all Restricted Shares upon: (a) the termination of your employment by reason of death, disability, or retirement, or (b) a Change of Control (even without termination of employment). Additionally, if your employment is terminated entitling you to severance under the terms of your employment agreement, then you will vest in Restricted Shares you would have vested in had you remained employed during the severance period, which is the number of months used to calculate severance under your employment agreement(e.g., 6 months or 12 months). Upon termination of employment other than as provided above you will forfeit any unvested Restricted Shares that have not vested.
4. Nontransferable: The Restricted Shares or any interest or right therein or part thereof may not be disposed of by transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means, whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), until vested, and any attempted disposition prior thereto shall be null and void and of no effect. The foregoing notwithstanding, transfers of the Restricted Shares may be permitted for estate planning purposes with the prior written consent of the Committee and subject in each case to the provisions of the Plan and the same restrictions and forfeiture provisions under this Agreement that the Restricted Shares had in your hands.
5. Dividends/Voting: You will be entitled to vote the Restricted Shares. However, you will only be entitled to receive any dividends that are paid on the Restricted Shares once they are vested. Any dividends paid on unvested Restricted Shares shall be held by the Company, without interest thereon and paid to you at the time the Restricted Shares on which such dividends were paid vest.
6. Certificates: The Company shall cause the Restricted Shares to be issued and a stock certificate or certificates representing the Restricted Shares to be registered in your name or held in book entry form, but if a stock certificate or certificates are issued, they shall be delivered to, and held in custody by the Company until the Restricted Shares vest. You agree to give to the Company a stock power for all unvested Restricted Shares. If issued, each such certificate will bear such legends as the Company may determine.
7. No Other Rights: The grant of Restricted Shares under the Plan is a one-time benefit and does not create any contractual or other right to receive an award of Restricted Shares or benefits in lieu of Restricted Shares in the future. Future awards of Restricted Shares, if any, will be at the sole discretion of the Company, including, but not limited to, the timing of the award, the number of shares and vesting provisions. The grant of Restricted Shares under the Plan does not entitle you to any rights to remain employed with the Company, nor does it constitute a contract of employment.
8. Miscellaneous: The Restricted Shares are granted under and governed by the terms and conditions of the Plan, as may be amended from time to time. Defined terms used herein shall have the meaning set forth in the Plan, unless otherwise defined herein.
9. 280G: Notwithstanding anything in this Agreement to the contrary, if the acceleration of vesting and any other payments to be made you (a “Payment”) would (i) constitute a “parachute payment” under Section 280G of the Code and (ii) but for this Section 9 be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then either (A) such Payments shall be reduced to the maximum amount that could be paid to you without any portion of the Payment (after reduction) being subject to the Excise Tax, or (B) the entire Payment, shall be paid if after taking into account all applicable federal, state and local taxes and the Excise Tax would provide a more favorable net after tax benefit to you (i.e., because the after tax proceeds to you of the reduced Payments and other benefits under this Agreement would exceed the after tax proceeds to you of Payments in the absence of any reduction, taking into account the Excise Tax applicable to such Payments). If a reduction in a Payment is to be made under clause (ii)(A), then the reduction will be made as determined by the Company in a manner that results in your retaining the largest amounts of Payments which are payable in cash or equity at or as close to the event giving rise to the change in control as possible, such as by first reducing your rights to any Payments that are contingent upon the occurrence of later events (such as severance). Any determination of whether any portion of the Payments constitutes a “parachute payment” within the meaning of Section 280G(b) of the Code, shall be made by a nationally recognized accounting firm selected by the Company, which may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable good faith interpretations concerning the application of Sections 280G and 4999 of the Code. In no event will the Company or any stockholder be liable to Executive for any amounts not paid as a result of the operation of this Section 9.
Cogent Communications Holdings, Inc. | ||
By: | /s/ Dave Schaeffer | |
Dave Schaeffer | ||
CEO |
2
Cover |
May 03, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | May 03, 2023 |
Entity File Number | 000-51829 |
Entity Registrant Name | Cogent Communications Holdings, Inc. |
Entity Central Index Key | 0001158324 |
Entity Tax Identification Number | 46-5706863 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 2450 N St NW, |
Entity Address, City or Town | Washington |
Entity Address, State or Province | DC |
Entity Address, Postal Zip Code | 20037 |
City Area Code | 202 |
Local Phone Number | 295-4200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.001 per share |
Trading Symbol | CCOI |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
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