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Item
|
| |
Voting Recommendation of the Board
|
| |
Page References
|
|
Election of two Class III directors | | |
FOR both nominees
|
| | | |
Ratification of the appointment of Grant Thornton LLP as the Company’s independent registered public accounting firm for the year 2022 | | |
FOR
|
| | | |
Approval, on an advisory basis, of executive officer compensation | | |
FOR
|
| | |
Governance Practice
|
| |
Description
|
| |
Page References
|
|
Director Independence | | |
All of our directors, except our Chairman of the Board, are independent.
|
| | | |
Separate Chairman | | |
We separate the roles of Chairman of the Board and Chief Executive Officer.
|
| | | |
Director Attendance | | |
During the year 2021, our incumbent members of the Board attended 100% of the Board and their respective committee meetings held when they were serving in such capacities.
|
| | | |
Director Resignation Policy | | |
We have a resignation policy if a director fails to garner a majority of votes cast in his or her election.
|
| | | |
Executive Session | | |
Our independent directors meet regularly in executive session without management and non-independent directors present.
|
| | | |
Independent
Compensation Consultant |
| |
We have a fully independent compensation consultant which provides reports to us periodically on the compensation of executive officers and directors of various companies, including companies in the medical products and devices industry.
|
| | |
Components of Compensation
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| |
Form of Compensation
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| |
Page References
|
|
Base Salary | | |
Annual Cash Salary
|
| | | |
Annual Cash Incentives | | |
Annual cash incentive based on Company and individual performance
|
| | | |
Long-Term Equity Incentives | | |
Stock Options, Restricted Stock, Stock Units, SARs, Performance Awards, Dividend Equivalents, and Other Stock-Based Awards
|
| | |
Additional Executive
Compensation Principles |
| |
Description
|
| |
Page References
|
|
Stock Ownership | | |
We require significant stock ownership by all of our executive officers.
|
| | | |
Anti-Hedging, Anti-Pledging, and Clawback Policies | | |
We have anti-hedging and anti-pledging policies and a clawback policy.
|
| | | |
No Single-Trigger Change in Control Agreements | | |
We have no single-trigger change in control agreements.
|
| | | |
At-Will Employment | | |
Our only executive officer who has an employment agreement is our Chairman of the Board.
|
| | | |
No Repricing of Stock Options
|
| |
We do not reprice stock options or SARs.
|
| | | |
No Gross-Ups for §280G Excise Taxes Related to Change in Control Agreements | | |
We do not provide gross-ups for §280G excise taxes related to change in control agreements.
|
| | |
Board Diversity Matrix (As of January 31, 2022)
|
| ||||||||||||||||||||||||
Total Number Of Directors
|
| |
6
|
| |||||||||||||||||||||
| | |
Female
|
| |
Male
|
| |
Non-Binary
|
| |
Did Not
Disclose Gender |
| ||||||||||||
Part I: Gender Identity | | | | | | | | | | | | | | | | | | | | | | | | | |
Directors
|
| | | | 1 | | | | | | 5 | | | | | | 0 | | | | | | 0 | | |
Part II: Demographic Background | | | | | | | | | | | | | | | | | | | | | | | | | |
African American or Black
|
| | | | 0 | | | | | | 1 | | | | | | 0 | | | | | | 0 | | |
Alaskan Native or Native American
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Asian
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Hispanic or Latinx
|
| | | | 1 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Native Hawaiian or Pacific Islander
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
White
|
| | | | 0 | | | | | | 4 | | | | | | 0 | | | | | | 0 | | |
Two Or More Races or Ethnicities
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
LGBTQ+
|
| |
0
|
| |||||||||||||||||||||
Did Not Disclose Demographic Background
|
| |
0
|
|
Name
|
| |
Fees Earned
or Paid in Cash ($)(1) |
| |
Stock Awards
($)(2) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| ||||||||||||
Preston G. Athey
|
| | | | 66,000 | | | | | | 92,000 | | | |
—
|
| | | | 158,000 | | | |||
Hugh J. Morgan, Jr.
|
| | | | 80,000 | | | | | | 92,000 | | | |
—
|
| | | | 172,000 | | | |||
Maria Sainz
|
| | | | 22,060 | | | | | | 66,290 | | | |
—
|
| | | | 88,350 | | | |||
Ronald N. Spaulding
|
| | | | 80,000 | | | | | | 92,000 | | | |
—
|
| | | | 172,000 | | | |||
John P. Stupp, Jr.
|
| | | | 80,000 | | | | | | 92,000 | | | | | | 3,736(3) | | | | | | 175,736 | | |
| | |
2021
|
| |
2020
|
| |
Change
|
| |||||||||
Revenues
|
| | | $ | 165,009,000 | | | | | $ | 147,591,000 | | | | | | 11.8% | | |
Operating Income
|
| | | | 36,042,000 | | | | | | 35,668,000 | | | | | | 1.0% | | |
Net Income
|
| | | | 33,055,000 | | | | | | 32,115,000 | | | | | | 2.9% | | |
Income per Diluted Share
|
| | | $ | 18.18 | | | | | $ | 17.44 | | | | | | 4.2% | | |
Operating Income as a Percentage of Year End Stockholders’ Equity
|
| | | | 14.8% | | | | | | 14.8% | | | | | | 0.0% | | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
|
| |
Stock Awards
($)(2) |
| |
Non-Equity
Incentive Plan Compensation ($)(1)(3) |
| |
Change in
Pension Value and Nonqualified Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| ||||||||||||||||||||||||
David A. Battat
|
| | | | 2021 | | | | | | 620,000 | | | | | | 400,000 | | | |
—
|
| | | | 900,000 | | | |
—
|
| | | | 16,585(4) | | | | | | 1,936.585 | | | ||||||
President and Chief | | | | | 2020 | | | | | | 620,000 | | | |
—
|
| | | | 1,000,000 | | | | | | 400,000 | | | |
—(5)
|
| | | | 45,635 | | | | | | 2,065,635 | | | ||||||
Executive Officer | | | | | 2019 | | | | | | 620,000 | | | |
—
|
| |
—
|
| | | | 800,000 | | | | | | 184,066 | | | | | | 21,995 | | | | | | 1,626,061 | | | ||||||
Jeffery Strickland
|
| | | | 2021 | | | | | | 300,000 | | | | | | 200,000 | | | |
—
|
| | | | 450,000 | | | | | | 18,795 | | | | | | 36,383(6) | | | | | | 1,005,178 | | | |||
Vice President and | | | | | 2020 | | | | | | 300,000 | | | |
—
|
| | | | 500,000 | | | | | | 325,000 | | | | | | 14,399 | | | | | | 30,661 | | | | | | 1,170,060 | | | |||
Chief Financial Officer, | | | | | 2019 | | | | | | 300,000 | | | |
—
|
| | | | 100,000 | | | | | | 325,000 | | | | | | 9,423 | | | | | | 29,381 | | | | | | 763,804 | | | |||
Secretary and Treasurer | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Emile A Battat
|
| | | | 2021 | | | | | | 600,000 | | | |
—
|
| |
—
|
| | | | 29,881 | | | |
—
|
| | | | 36,667(7) | | | | | | 666,548 | | | |||||||||
Chairman | | | | | 2020 | | | | | | 600,000 | | | |
—
|
| | | | 1,000,000 | | | |
—
|
| | | | 4,203 | | | | | | 18,088 | | | | | | 1,622,291 | | | ||||||
| | | | | 2019 | | | | | | 600,000 | | | |
—
|
| |
—
|
| |
—
|
| | | | 15,661 | | | | | | 20,349 | | | | | | 636,010 | | |
Name
|
| |
Grant Type
|
| |
Grant Date
|
| |
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards(1) |
| ||||||
|
Threshold
($) |
| |
Target(2)
($) |
| |
Maximum
($) |
| ||||||||
David A. Battat
|
| |
Incentive Compensation
|
| |
N/A
|
| |
—
|
| |
900,000
|
| |
—
|
|
Jeffery Strickland
|
| |
Incentive Compensation
|
| |
N/A
|
| |
—
|
| |
450,000
|
| |
—
|
|
Emile A Battat
|
| |
Incentive Compensation
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
|
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||
Name
|
| |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number of
Shares or Units of Stock That Have Not Vested (#) |
| |
Market Value
of Shares or Units of Stock That Have Not Vested ($)(1) |
| ||||||||||||||||||
David A. Battat
|
| | | | 2,000 | | | | | | 2,000(2) | | | | | | 538.00 | | | | | | 5/23/23 | | | | | | 1,844(3) | | | | | | 1,299,511 | | |
Jeffery Strickland
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| | | | 1,607(4) | | | | | | 1,132,253 | | | ||||||||||||
Emile A Battat
|
| | | | 2,000 | | | | | | 2,000(5) | | | | | | 464.05 | | | | | | 3/13/23 | | | | | | 1,824(6) | | | | | | 1,285,413 | | |
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||
Name
|
| |
Number of Shares
Acquired on Exercise (#) |
| |
Value Realized on
Exercise ($) |
| |
Number of Shares
Acquired on Vesting (#) |
| |
Value Realized on
Vesting ($)(1) |
| ||||||||||||
David A. Battat
|
| | | | 6,000 | | | | | | 882,000 | | | | | | 911 | | | | | | 550,943 | | |
Jeffery Strickland
|
| |
—
|
| |
—
|
| | | | 155 | | | | | | 97,061 | | | ||||||
Emile A Battat
|
| | | | 6,000 | | | | | | 1,325,700 | | | | | | 891 | | | | | | 591,429 | | |
Name
|
| |
Executive
Contributions in Last FY ($)(1) |
| |
Registrant
Contributions in Last FY ($)(2) |
| |
Aggregate
Earnings in Last FY ($)(3) |
| |
Aggregate
Withdrawals/ Distributions ($) |
| |
Aggregate
Balance at Last FYE ($)(4) |
| ||||||||||||
David A. Battat
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| ||||||||||||
Jeffery Strickland
|
| | | | 470,000 | | | | | | 6,825 | | | | | | 18,795 | | | |
—
|
| | | | 1,361,017 | | |
Emile A Battat
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
|
Name
|
| |
Type of Payment or Benefit
|
| |
Termination
for Just Cause or Without Good Reason ($) |
| |
Termination Without
Just Cause, For Good Reason, or upon Retirement, Death, or Disability ($) |
| |
Termination Without
Just Cause or For Good Reason in Connection with a Change in Control ($) |
| |
Change in
Control ($) |
| ||||||||||||
David A. Battat
|
| |
Severance Payment
|
| |
—
|
| |
—
|
| | | | 3,040,000 | | | |
—
|
| |||||||||
| Equity Awards(1) | | |
—
|
| | | | 876,571 | | | | | | 1,633,311 | | | | | | 1,633,311 | | | |||||
| NQDC Plan Account Balance | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| ||||||||||||||
| Health Benefits | | |
—
|
| |
—
|
| | | | 9,979 | | | |
—
|
| |||||||||||
|
Unreimbursed Business Expenses
|
| | | | 94,000 | | | | | | 94,000 | | | | | | 94,000 | | | |
—
|
| |||||
| Accrued Vacation Pay | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| ||||||||||||||
| Total | | | | | 94,000 | | | | | | 970,571 | | | | | | 4,777,290 | | | | | | 1,633,311 | | | ||
Jeffery Strickland
|
| |
Severance Payment
|
| |
—
|
| |
—
|
| | | | 300,000 | | | |
—
|
| |||||||||
| Equity Awards(1) | | |
—
|
| | | | 803,163 | | | | | | 1,132,239 | | | | | | 1,132,239 | | | |||||
|
NQDC Plan Account Balance(2)
|
| | | | 1,361,017 | | | | | | 1,361,017 | | | | | | 1,361,017 | | | |
—
|
| |||||
| Health Benefits | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| ||||||||||||||
|
Unreimbursed Business Expenses
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| ||||||||||||||
| Accrued Vacation Pay | | | | | 5,769 | | | | | | 5,769 | | | | | | 5,769 | | | |
—
|
| |||||
| Total | | | | | 1,366,786 | | | | | | 2,169,949 | | | | | | 2,799,025 | | | | | | 1,132,239 | | | ||
Emile A Battat
|
| |
Severance Payment
|
| | | | 29,881 | | | | | | 641,442 | | | | | | 1,253,003 | | | |
—
|
| |||
| Equity Awards(1) | | |
—
|
| | | | 1,767,113 | | | | | | 1,767,113 | | | | | | 1,767,113 | | | |||||
| NQDC Plan Account Balance | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| ||||||||||||||
| Health Benefits | | |
—
|
| | | | 20,931 | | | | | | 20,931 | | | |
—
|
| ||||||||
|
Unreimbursed Business Expenses
|
| | | | 160,168 | | | | | | 160,168 | | | | | | 160,168 | | | |
—
|
| |||||
| Accrued Vacation Pay | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| ||||||||||||||
| Total | | | | | 190,049 | | | | | | 2,589,654 | | | | | | 3,201,215 | | | | | | 1,767,113 | | |
Name of Beneficial Owner
|
| |
Number of Shares
Beneficially Owned(1) |
| |
Percent
of Class(1) |
| ||||||
Preston G. Athey
|
| | | | 656 | | | | |
|
*
|
| |
David A. Battat(2)
|
| | | | 98,191(3) | | | | | | 5.46% | | |
Emile A Battat(4)
|
| | | | 153,802(5) | | | | | | 8.55% | | |
Hugh J. Morgan, Jr.
|
| | | | 9,952 | | | | | | * | | |
Maria Sainz
|
| | | | 112 | | | | | | * | | |
Ronald N. Spaulding
|
| | | | 2,282(6) | | | | | | * | | |
John P. Stupp, Jr.
|
| | | | 140,998(7) | | | | | | 7.85% | | |
Jeffery Strickland
|
| | | | 2,402(8) | | | | | | * | | |
BlackRock, Inc.(9)
|
| | | | 114,537 | | | | | | 6.38% | | |
Kayne Anderson Rudnick Investment Management, LLC(10)
|
| | | | 190,555 | | | | | | 10.62% | | |
Neuberger Berman Group LLC(11)
|
| | | | 208,151 | | | | | | 11.60% | | |
T. Rowe Price Associates, Inc.(12)
|
| | | | 145,019 | | | | | | 8.09% | | |
All directors and executive officers as a group (8 persons)(13)
|
| | | | 408,395 | | | | | | 22.65% | | |
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