-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SG0IeHurpM2UNQNG1c7YIUnHFfqdRxz5CpepqZxuyuaznazt2FeWSTkD1HUJ2W+E X0aCzDJmBPxW2ANLRVQWdA== 0001009881-96-000026.txt : 19960424 0001009881-96-000026.hdr.sgml : 19960424 ACCESSION NUMBER: 0001009881-96-000026 CONFORMED SUBMISSION TYPE: DFRN14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19960423 SROS: NYSE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: US WEST INC CENTRAL INDEX KEY: 0000732718 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 840926774 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DFRN14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08611 FILM NUMBER: 96549378 BUSINESS ADDRESS: STREET 1: 7800 E ORCHARD RD STREET 2: SUITE 480 CITY: ENGLEWOOD STATE: CO ZIP: 80111 BUSINESS PHONE: 3037936629 MAIL ADDRESS: STREET 1: 7800 EAST ORCHARD ROAD STREET 2: SUITE 480 CITY: ENGLEWOOD STATE: CO ZIP: 80111 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: UNITED FOOD & COMMERCIAL WORKERS UNION LOCAL 99R CENTRAL INDEX KEY: 0001009881 STANDARD INDUSTRIAL CLASSIFICATION: [] FILING VALUES: FORM TYPE: DFRN14A BUSINESS ADDRESS: STREET 1: C/O DAVIS COWELL & BOWE STREET 2: 100 VAN NESS AVENUE 20TH FLOOR CITY: SAN FRANCISCO STATE: CA ZIP: 94102 BUSINESS PHONE: 4156261880 MAIL ADDRESS: STREET 1: C/O DAVIS COWELL & BOWE STREET 2: 100 VAN NESS AVENUE 20TH FLOOR CITY: SAN FRANCISCO STATE: CA ZIP: 94102 DFRN14A 1 SCHEDULE 14A SCHEDULE 14 INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant [ ] Filed by a Party other than the Registrant [ X ] Check the appropriate box: [ ] Preliminary Proxy Statement [X ] Definitive Proxy Statement [ ] Definitive Additional Materials [ ] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 Name of Registrant as Specified in Its Charter: US West, Inc. Name of Person(s) Filing Proxy Statement: United Food & Commercial Workers Union, Local 99R Payment of Filing Fee (check the appropriate box) [X ] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(j) (2). [ ] $500 per each party to the controversy pursuant to Exchange Act Rule 14a-6(i)(3). [ ] Fee computed on table below per Exchange Act Rules 14a- 6(i)(4) and 0-11. 1) Title of each class of securities to which transaction applies: ____________________________________________________________ 2) Aggregate number of securities to which transaction applies: _____________________________________________________________ 3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11: (1) _____________________________________________________________ 4) Proposed maximum aggregate value of transaction: _____________________________________________________________ (1) Set forth the amount on which the filing fee is calculated and state how it was determined. [ ] 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. 1) Amount previously paid: ____________________________ 2) Form, Schedule or Registration Statement No: ______________________________ 3) Filing Party: _________________________ Date Filed: _______________________________ First mailed April 19, 1996 UFCW 99R 2501 W. Dunlap Ave. Phoenix AZ 85021 (602) 572-2149 INDEPENDENT SHAREHOLDER SOLICITATION FOR SHAREHOLDER PROPOSALS FOR (1) SHAREHOLDER REVIEW OF GOLDEN PARACHUTES TO EXECUTIVES WHO QUIT, AND (2) DECLASSIFICATION OF THE BOARD OF DIRECTORS AT U.S. WEST, INC. Annual Stockholders Meeting June 7, 1996 10:00 a.m. Iowa State University, Benton Auditorium Ames, IOWA Dear Fellow U.S. West Shareholder: We urge you to vote FOR our shareholder proposal concerning management's current golden parachute agreements: these would allow the top 5 executive officers to recover three years' severance pay for quitting their jobs in response to relatively-minor employment changes following a change in control. Management declined to place this proposal in the proxy card it already sent you. Therefore, to vote for this proposal you need to execute the enclosed proxy card, attend the meeting, or receive a revised card from management. We also urge you to vote FOR the shareholder proposal (appearing on the company card) to declassify the board of directors--that is, have all directors elected annually. 1. SHAREHOLDER PROPOSAL TO PROVIDE FOR SHAREHOLDER REVIEW OF GOLDEN PARACHUTE POLICY At the shareholders meeting we will make the following proposal: RESOLVED, that shareholders recommend the Board renegotiate its executive severance policy to eliminate payments to executives who quit after a change in control, unless and until such a policy is approved by shareholder vote. In our view, executives should be paid for doing well by shareholders, or perhaps helped when they get fired, but should not be rewarded for quitting. The Company's current policy provides for three years' worth of severance pay and benefits if an executive quits within 3 years of a change in control in response to any of the following changes, among others: * "The taking of any action by the Company which would directly or indirectly materially reduce or deprive the Executive of any other perquisite enjoyed by the Executive immediately prior to the Change of Control (including Company-paid and/or reimbursed club memberships, financial counseling fees and the like"; * "Any diminution in the status or responsibilities of the Executive's position from that which existed immediately prior to the Change of Control . . ."; * "The assignment to the Executive of any duties inconsistent with, or any substantial diminution in, such Executive's status or responsibilities . . . including imposition of travel responsibilities which differ materially from required business travel immediately prior to the Change of Control"; * "Except as required by law, the failure by the Company to continue to provide to the Executive benefits substantially equivalent, in aggregate, to those employed by the Executive under the qualified and non-qualified employee benefit and welfare plans of the Company, including, without limitation, any pension, life insurance, medical, dental, health and accident, disability, retirement or savings plans in which the Executive was eligible to participate immediately prior to the Change of Control"; * "the failure by the Company or its successor to treat the executive under the Company's vacation policy, past practice or special agreement in the same manner and to the same extent as was in effect immediately prior to the Change of Control"; * "A reduction in the Executive's annual base salary as in effect immediately before the Change of Control" or; * "A change in the principal place of the Executive's employment ... more than thirty-five (35) miles..."; The complete text of this policy is on file with the SEC as Exhibit 10y to the US West 10K for year ended 12/95, incorporated herein by reference. Copies are available from SEC reading rooms, from commercial services such as Disclosure, Inc. (800-638-8241), or from us. We undertake to mail you a copy without charge by first class mail within one business day of your written or oral request directed to UFCW 99 Information Services, 2501 W. Dunlap Ave. Phoenix AZ 85201, tel. (602) 997-8000. We are shocked that an executive could collect 3 years' compensation for quitting in response to the company's refusal to go on paying his country club dues. In our view, paying officers who quit after a change in control cannot be squared with the reason offered by the Board for having these agreements in the first place: "The purpose of these agreements is to encourage the officers to continue to carry out their duties in the event of a possible change in control." 1995 Proxy Statement at p. 12. In our opinion, paying executives for quitting after a change in control encourages them to do exactly that -- given that changes in control often involve some "diminution in the status or responsibilities" of top executives (or one of the other changes listed in the policy). Isn't US West's executive compensation sufficiently high to compensate executives for the risks involved in a change in control? Here is a summary of this compensation in 1995, taken from the Company's proxy statement: Name/Title Total Salary & Bonus # of Stock Options Awarded Richard McCormick, Chmn. $1,210,000 140,000 Charles Lillis, CEO Media Group $865,000 100,000 Solomon Trujillo, Exec.VP $642,500 130,000 Charles Russ, Exec.VP $550,000 40,000 James Stever, Exec.VP $510,000 30,000 Not included above are long-term incentive plan payouts (stock worth $892,457 to $2,083,292 each), or other forms of compensation. Some backers of such policies assert that such policies are standard in industry and expected by those seeking jobs as executive officers. However, practically speaking, how many people base a job decision upon how much they can get if they later quit? How good an excuse is it that other companies do something similar, when many have boards (like U.S. West's) comprised primarily of senior executives of large companies? Some other companies' golden parachutes do not pay executives who quit, or have narrower grounds for doing so than U.S. West. The current policy extends to all 5 of the top executive officers. We do not know how many more U.S. West officers enjoy it. We believe shareholders would prefer to have their company's employees be flexible about changing job duties, rather than expect to be able to quit in response to such changes and receive several years' pay. In our opinion, the current policy sends the wrong message. Some shareholders feel that any form of golden parachute is improper because it burdens shareholders' exercise of their legal right to change control. Others do not mind paying severance to top managers who are fired due to a change in control. Our proposal is not addressed to severance pay for those who are fired. Rather, the only issue we address here is paying severance to executives who quit rather than continue to help the company and its shareholders through a transition period. Even if you think the current policy makes sense, all this proposal seeks is shareholder approval of such a policy prior to any such payments being made. Let's have shareholders decide. 2. SHAREHOLDER PROPOSAL RECOMMENDING DECLASSIFICATION OF THE BOARD OF DIRECTORS An unaffiliated shareholder has made a proposal recommending that all directors stand for reelection each year. Under the current staggered board scheme, usually only one-third of the directors are up for election each year. Even if a takeover was supported by all shareholders, it would take them at least 3 years to replace the entire board. In our view, that is an unfair restriction on shareholder rights. Last year, this proposal received the votes of 30% of shares voted. Several companies have moved or are moving to eliminate their classified board, such as Union Pacific. We believe directors will be more accountable in their decisionmaking to shareholders if they have to face reelection shortly after their decisions. The text of this proposal is found in the proxy statement you received from the company, incorporated herein by reference. You may vote on this proposal using the card supplied you by management. VOTING PROCEDURE AND VOTING RIGHTS Our staff will keep the content of all cards we receive confidential (except from the Company's transfer agent which counts the votes, and the Company has a policy of confidential voting by shareholders). You can vote in person at the shareholders meeting or by proxy. Because the Company's card does not include our golden parachutes proposal, if you wish to vote for it you need to return the enclosed card, attend the meeting, or use a revised card from management (if it chooses to revise). THE COMPANY'S CARD PURPORTS TO GIVE THE BOARD OF DIRECTORS THE RIGHT TO VOTE "IN THEIR DISCRETION ON ANY OTHER MATTER THAT MAY PROPERLY COME BEFORE THE ANNUAL MEETING" -- which includes this proposal. If you return this card to management, it intends to vote your shares against our proposal. Our proxy card does not grant us any discretionary voting authority: we will vote as instructed, and if matters come before the meeting not listed therein, we will not vote your shares thereon. Only shareholders of record as of April 8, 1996 will be entitled to vote. A vote of a majority of shares represented at the meeting is required to pass each proposal. These proposals are framed as recommendations, and shareholder approval would not bind the Board of Directors. We in no way suggest the Board could unilaterally rewrite the current executives' change-in-control agreements. However, we believe that as a practical matter, the Board and these executives would not ignore recommendations approved by most shareholders. Our staff will keep confidential any information on survey responses which identify you and will use this information solely to confirm the survey's validity and to communicate concerning shareholder voting issues. To obtain another card from management, contact U.S. West, 7800 E. Orchard Blvd., Englewood, CO 80111. Tel. (303) 793-6500, Fax (303) 784-5232. SOLICITATION The costs of this solicitation are being borne by United Food & Commercial Workers Local 99R, which owns 47 shares of common stock in U.S. West Communications Group. We expect to spend $2000 on this solicitation. We are a non-profit organization representing grocery employees in Arizona. We have no interest in bargaining for US West employees, nor are aware of any labor dispute at US West. We are organizing Albertson's employees and faced with management opposition through means we feel improper. U.S. West Communications executive A. Gary Ames sits on Albertson's Board of Directors. We are pursuing shareholder proposals at other companies similarly connected to Albertson's. Regardless of the outcome of Albertson's labor relations or Ames continuing to sit on its board, at the U.S. West shareholders meeting we will present the proposal concerning golden parachutes and all proxies we have gathered. PROPOSALS FOR FUTURE MEETINGS SEC Rule 14a-8 gives shareholders who have owned more than $1000 worth of the company's stock for more than one year the right to have the company's proxy statement include a shareholder proposal and supporting statement. The deadline for submitting such proposals for inclusion in the proxy statement for the 1997 annual meeting will be in the Company's forthcoming proxy statement. Feel free to contact us if you would like more information about shareholder proposals. SECURITY OWNERSHIP OF DIRECTORS AND OFFICERS/ELECTION OF DIRECTORS/RATIFICATION OF AUDITORS/APPROVAL OF LONG-TERM INCENTIVE PLAN Information on these subjects is contained in management's proxy statement, incorporated herein by reference. We make no recommendation as to the directors election or on other voting matters. PLEASE VOTE FOR SHAREHOLDER REVIEW OF GOLDEN PARACHUTE POLICY AND FOR HAVING ALL DIRECTORS STAND FOR ELECTION ANNUALLY Sincerely, William McDonough President UFCW 99R PLEASE RETURN THE ENCLOSED CARD AND SURVEY TO: UFCW 99R, 2501 W. Dunlap Avenue, Phoenix AZ, 85021 (602) 572-2149 UFCW SURVEY OF U.S. WEST SHAREHOLDER OPINION [This is a voluntary survey, not a proxy. Please return even if you do not fill out a proxy]. 1. Do you support requiring shareholder approval of the Company's policy promising golden parachutes to executives who quit in response to job changes after a change in control? Yes [] No [ ] Undecided [ ] (To vote on this shareholder proposal, you need to fill out a proxy card or vote in person). 2. Do you support the idea of having an annual election of all directors (instead of the current classified board)? Yes [ ] No [ ] Undecided [ ] (To vote on this shareholder proposal, you need to fill out a proxy card or vote in person). 3. Do you believe the company should have a golden parachute policy for executives terminated after shareholders change control? Yes [ ] No [ ] Undecided [ ] 4. Do you believe compensation of the Company's top executives should be based more on stock performance than salary? Yes [ ] No [ ] Undecided [ ] 5. What is your favorite thing about the Company?_________________________ 6. What is the worst thing about the Company? _____________________________ 7. List anything you would like management to change: ______________________ THE FOLLOWING INFORMATION WILL BE KEPT CONFIDENTIAL: Name _______________________________Title, if any __________________________ Address ____________________________________________________________________ Phone/Fax _______________________ # Shares owned _______________________ Return to: UFCW 99R, 2501 W. Dunlap Ave., Phoenix AZ 85201 PROXY SOLICITED BY UFCW 99R for U.S. WEST INC. ANNUAL MEETING OF SHAREHOLDERS June 7, 1996 The undersigned shareholder hereby appoints William McDonough proxy with full power of substitution to vote for the undersigned at the annual meeting of U.S. West Inc., and at any adjournments thereof, as directed below. The undersigned grants no discretionary authority. PLEASE DATE, SIGN AND PROMPTLY MAIL IN THE SELF-ADDRESSED ENVELOPE. PERSONS SIGNING IN REPRESENTATIVE CAPACITY SHOULD INDICATE AS SUCH. IF SHARES ARE HELD JOINTLY, BOTH OWNERS SHOULD SIGN. (1) PROPOSAL FOR SHAREHOLDER REVIEW OF COMPANY POLICY OFFERING GOLDEN PARACHUTES TO EXECUTIVES WHO QUIT: FOR [ ] AGAINST [ ] ABSTAIN [ ] (2) PROPOSAL TO HAVE ALL DIRECTORS UP FOR ELECTION ANNUALLY: FOR [ ] AGAINST [ ] ABSTAIN [ ] (3) ELECTION OF DIRECTORS: Nominees: Class I: Allen Jacobsen; Class II: Pierson Grieve, Richard McCormick, Marilyn Carlson Nelson FOR all nominees: [ ] WITHHOLD from all nominees [ ] FOR all nominees except: ________________________________________ (4) APPROVAL OF US WEST COMMUNICATIONS GROUP LONG-TERM INCENTIVE PLAN: FOR [ ] AGAINST [ ] ABSTAIN [ ] (5) RATIFICATION OF AUDITORS: FOR [ ] AGAINST [ ] ABSTAIN [ ] SIGNATURE ______________________________________________ PRINT NAME/TITLE______________________________________ DATE ___________ ADDRESS__________________________________________________________________ _____________ _______________ _________________ _______________ ACCOUNT NO. # OF SHARES PHONE No. FAX NO. IF YOU ARE NOT THE RECORD OWNER OF THIS STOCK, PLEASE LIST THE NAME AND ADDRESS OF THE RECORD OWNER: -----END PRIVACY-ENHANCED MESSAGE-----