0001104659-14-019767.txt : 20140314 0001104659-14-019767.hdr.sgml : 20140314 20140314163159 ACCESSION NUMBER: 0001104659-14-019767 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20140311 ITEM INFORMATION: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers FILED AS OF DATE: 20140314 DATE AS OF CHANGE: 20140314 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HCC INSURANCE HOLDINGS INC/DE/ CENTRAL INDEX KEY: 0000888919 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 760336636 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13790 FILM NUMBER: 14694887 BUSINESS ADDRESS: STREET 1: 13403 NORTHWEST FRWY CITY: HOUSTON STATE: TX ZIP: 77040-6094 BUSINESS PHONE: 7136907300 MAIL ADDRESS: STREET 1: 13403 NORTHWEST FREEWAY CITY: HOUSTON STATE: TX ZIP: 77040 8-K 1 a14-8174_18k.htm 8-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported):  March 11, 2014

 

HCC INSURANCE HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-13790

 

76-0336636

(State or other jurisdiction of

 

(Commission File Number)

 

(I.R.S. Employer

incorporation)

 

 

 

Identification No.)

 

13403 Northwest Freeway

Houston, Texas 77040

(Address of principal executive offices, including zip code)

 

(713) 690-7300

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


 

Item 5.02.                                        Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

On March 11, 2014, the Compensation Committee (the “Committee”) of the Board of Directors of HCC Insurance Holdings, Inc. (the “Company”) adopted the following compensation-related decisions regarding the Company’s named executive officers (i.e., those executive officers for whom disclosure was required in the Company’s 2013 Proxy Statement):

 

2013 Annual Incentive Awards

 

The Committee approved the actual amounts to be paid to certain executive officers, including our named executive officers, for annual incentive awards made in 2013 under the Company’s 2008 Flexible Incentive Plan (the “2008 FIP”), as follows:

 

Named Executive Officer

 

2013 Annual Incentive Award

 

 

 

 

 

Christopher J.B. Williams

 

$

4,600,000

 

Brad T. Irick

 

$

610,000

 

William N. Burke

 

$

1,100,000

 

Barry J. Cook

 

$

1,001,400

(1)

Craig J. Kelbel

 

$

1,600,000

 

 

2014 Annual Incentive Award Targets

 

The Committee designated named executive officers as participants, and established targets and maximums, for annual incentive awards for 2014 under the 2008 FIP, as follows:

 

Named Executive Officer

 

2014 Annual Incentive
Award Target (% of
Base Salary)

 

2014 Annual Incentive
Award Maximum (%
of Base Salary)

 

2014 Annual Incentive
Award Maximum (%
of Pretax Income)

 

 

 

 

 

 

 

 

 

Christopher J.B. Williams

 

150

%

300

%

1.00

%

Brad T. Irick

 

60

%

120

%

0.25

%

William N. Burke

 

60

%

120

%

0.50

%

Barry J. Cook

 

60

%

120

%

0.25

%

Craig J. Kelbel

 

100

%

200

%

0.30

%

 

Target annual incentive awards are generally expressed as a percentage of a named executive officer’s base salary. The actual annual incentive award received by a named executive officer may vary between 0% and 200% of the target award based (i) 70% upon the Company’s achievement of certain levels of operating return on equity, growth in book value per share (excluding accumulated other comprehensive income) and GAAP combined ratio, and (ii) 30% upon the named executive officer’s achievement of pre-established individual goals. No annual incentive awards will be granted in a given year if the Company’s pretax income for such year is less than 50% of the Company’s pretax income for the preceding year and in no case will a named executive officer receive an actual annual incentive award payment in excess of the lesser of (i) 200% of the target annual incentive award or (ii) a designated percentage of the Company’s pretax income.

 

2014 Annual Equity Awards

 

The Committee granted named executive officers annual awards of time-vesting and performance-vesting restricted stock under the 2008 FIP, as follows:

 

 

 

Time-Vesting Restricted Stock
Award

 

Performance-vesting Restricted
Stock Award (at Target)

 

Named Executive Officer

 

(% of Base
Salary)

 

(# of Shares)

 

(% of Base
Salary)

 

(# of Shares)

 

 

 

 

 

 

 

 

 

 

 

Christopher J.B. Williams

 

100

%

22,169

 

150

%

33,253

 

Brad T. Irick

 

20

%

2,439

 

40

%

4,877

 

William N. Burke

 

—

 

—

 

20

%

4,434

 

 

(1)  Converted from British pounds sterling using an exchange rate of 1.669.

 

2


 

An award of time-vesting restricted stock will vest, assuming continued employment, ratably over a 3-year period beginning on the grant date. Dividends are payable on the time-vesting restricted stock during the vesting period. Between 0% and 200% of the target award of performance-vesting restricted stock will vest, assuming continued employment, on the third anniversary of the grant date based (i) 50% upon the Company’s achievement of specified levels of operating return on equity over a 3-year performance period beginning on January 1, 2014 and (ii) 50% upon the Company’s total shareholder return as compared to the Company’s peer group over the same 3-year performance period. No dividends are payable on the performance-vesting restricted stock prior to vesting.

 

In addition, the Committee granted additional, discretionary awards of time-vesting and performance-vesting restricted stock under the 2008 FIP, as follows:

 

 

 

Time-Vesting Restricted Stock
Award

 

Performance-vesting Restricted
Stock Award (at Target)

 

Named Executive Officer

 

(Value)

 

(# of Shares)

 

(Value)

 

(# of Shares)

 

 

 

 

 

 

 

 

 

 

 

Christopher J.B. Williams

 

$

500,000

 

11,089

 

—

 

—

 

Brad T. Irick

 

$

20,000

 

443

 

$

40,000

 

797

 

William N. Burke

 

—

 

—

 

$

100,000

 

2,217

 

 

The discretionary awards of time-vesting and performance-vesting restricted stock have the same terms and conditions as the annual awards of time-vesting and performance-vesting restricted stock, respectively.

 

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SIGNATURE

 

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.

 

 

 

 

HCC Insurance Holdings, Inc.

 

 

 

 

By: 

/s/ Alexander M Ludlow

 

 

Alexander M Ludlow

 

 

Associate General Counsel & Assistant Secretary

 

 

DATED:  March 14, 2014

 

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