-----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, Bw5qEHK+2Ech+mBx8H/0zUz46e/5lHMT8hpsXvfHd0Po3PBzJgX5Xjw91jyxhVW7 V9FoJCQRD3LPlyp+PKP+dg== 0000950123-03-006645.txt : 20030529 0000950123-03-006645.hdr.sgml : 20030529 20030529172646 ACCESSION NUMBER: 0000950123-03-006645 CONFORMED SUBMISSION TYPE: PX14A6G PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20030529 EFFECTIVENESS DATE: 20030529 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: SIEBEL SYSTEMS INC CENTRAL INDEX KEY: 0001006835 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 943187233 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: PX14A6G SEC ACT: 1934 Act SEC FILE NUMBER: 000-20725 FILM NUMBER: 03724135 BUSINESS ADDRESS: STREET 1: 2207 BRIDGEPOINTE PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94404 BUSINESS PHONE: 6504775000 MAIL ADDRESS: STREET 1: 2207 BRIDGEPOINTE PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94404 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: COLLEGE RETIREMENT EQUITIES FUND CENTRAL INDEX KEY: 0000777535 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 136022042 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: PX14A6G BUSINESS ADDRESS: STREET 1: 730 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2129164905 MAIL ADDRESS: STREET 1: 730 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10017 PX14A6G 1 y87128px14a6g.txt NOTICE OF EXEMPT SOLICITATION: SIEBEL-CREF U.S. Securities and Exchange Commission Washington, D.C. 20449 Notice of Exempt Solicitation Submitted pursuant to Rule 14a-6(g) 1. Name of Registrant: Siebel Systems, Inc. 2. Name of person relying on exemption: College Retirement Equities Fund 3. Address of person relying on the exemption: 730 Third Avenue, New York, NY 10017 4. Written materials. The following written materials are attached: Exhibit 1: Letter from Peter C. Clapman on behalf of Teachers Insurance and Annuity Association - College Retirement Equities Fund Ex. 99.1 LETTER Exhibit 1 TEACHERS INSURANCE AND ANNUITY ASSOCIATION PETER C. CLAPMAN COLLEGE RETIREMENT EQUITIES FUND Senior Vice President and Chief 730 Third Avenue/New York, NY 10017-3206 Counsel, Corporate Governance 212 490-9000 May 27, 2003 Dear Fellow Siebel Systems Shareholder: I am writing to you on behalf of the College Retirement Equities Fund (CREF), a holder of more than 2.4 million shares of common stock in Siebel Systems ("the Company"), which has submitted the shareholder resolution this year requesting that the Company adopt performance-based compensation programs. The Company went to the SEC in an effort to deprive you of your opportunity to vote on this issue, but fortunately the SEC rejected the Company's attempt. We believe that support for our resolution will have a positive long-term effect on the value of your shares and thus urge you to support our resolution and vote "FOR" Proposal 4 on the company's proxy card. Our proposal presents a clear question for shareholders. DO YOU WANT A COMPENSATION PLAN THAT TRULY LINKS MANAGEMENT INTERESTS AND YOUR INTERESTS, OR DO YOU WISH TO ACQUIESCE IN THE COMPANY'S CONTINUED RELIANCE ON TRADITIONAL OPTIONS AT AN EXTREMELY HIGH LEVEL? As a shareholder in Siebel Systems, you have a vital interest in this issue, because traditional stock options do not effectively align management's interests with your interests as a shareholder. We ask that Siebel adopt an equity policy for future compensation plans that includes intended dilution levels, performance hurdles, holding periods for stock, or other measures that would ensure that executives face real financial risk. Traditional fixed options can reward executives solely because of market changes, not because of true company performance. Transforming the Company's compensation plans to link equity pay to a group of peer companies or a market-based index would provide executives with incentives aligned with your interests as shareholders. A policy imposing intended dilution levels is especially important because the Company's program now has the potential to significantly dilute your ownership interests over time. At the end of 2001, Siebel Systems had potential dilution--shares granted and shares available for grant under compensation plans--equal to 77% of total shares outstanding. The IRRC (Investor Responsibility Research Center) reports that the average dilution for all technology companies was 24%, with Siebel's 77% in the top ten for public companies in its use of options for compensation. The Company argues that Chairman and CEO Thomas Siebel recently gave back all of the 25,950,000 options that he had been granted since late 1998. Yet, in 2002 alone, Mr. Siebel cashed in options for a gain of over $35 million. For the three years before that, his total realized gain from options was over $311 million. In the final analysis, the real question for shareholders today may be why he had so many option shares, none of which were performance-based, in the first place. Even with that option giveback and other actions since late 2001, the Company's potential dilution still recalculates to 69%. It is important to send a clear message for the future. The past three years have been an extremely difficult period for Siebel Systems' shareholders, both on absolute and relative measures. We ask that Siebel Systems consider fundamental changes for its future executive compensation plans, including more thoughtful use of equity incentives. Heavy reliance on the use of fixed options is not in the best interests of shareholders. Since this issue affects the potential value of your investment, we urge your support for the resolution. Very truly yours, /s/ Peter C. Clapman Peter C. Clapman - -------------------------------------------------------------------------------- PLEASE VOTE "FOR" SHAREHOLDER PROPOSAL 4 ON SIEBEL'S PROXY CARD TIAA-CREF is requesting that you cast your votes FOR shareholder proposal 4 on the proxy card sent out by Siebel Systems for its June 11, 2003, annual meeting. Please note that if you leave the proxy card blank and return it, the company will count your votes against our proposal. TIAA-CREF, which will not be sending out a separate proxy card, is taking no public position on any other item being considered at the annual meeting. - -------------------------------------------------------------------------------- -----END PRIVACY-ENHANCED MESSAGE-----