Use these links to rapidly review the document
TABLE OF CONTENTS
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy
Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
|
|
|
Filed by the Registrant ý |
Filed by a Party other than the Registrant o |
Check the appropriate box: |
o |
|
Preliminary Proxy Statement |
o |
|
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
ý |
|
Definitive Proxy Statement |
o |
|
Definitive Additional Materials |
o |
|
Soliciting Material under §240.14a-12
|
|
|
|
|
|
Wyndham Worldwide Corporation |
(Name of Registrant as Specified In Its Charter) |
|
(Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
Payment of Filing Fee (Check the appropriate box): |
ý |
|
No fee required. |
o |
|
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) 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 (set forth the amount on which the filing fee is calculated and state how it was determined):
|
|
|
(4) |
|
Proposed maximum aggregate value of transaction:
|
|
|
(5) |
|
Total fee paid:
|
o |
|
Fee paid previously with preliminary materials. |
o |
|
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:
|
|
|
(4) |
|
Date Filed:
|
Table of Contents
NOTICE OF 2015 ANNUAL MEETING
OF SHAREHOLDERS AND
PROXY STATEMENT
Wyndham
Worldwide Corporation
22 Sylvan Way
Parsippany, New Jersey 07054
April 2,
2015
Dear
Shareholder of Wyndham Worldwide Corporation,
You
are cordially invited to attend the 2015 Annual Meeting of Shareholders to be held on Thursday, May 14, 2015.
The
meeting will start at 11:30 a.m. local time at Wyndham Worldwide Corporation, 22 Sylvan Way, Parsippany, New Jersey 07054.
I
appreciate your continued support of Wyndham Worldwide Corporation and look forward to seeing you on May 14, 2015.
Very
truly yours,
Stephen
P. Holmes
Chairman and Chief Executive Officer
Table of Contents
WYNDHAM WORLDWIDE CORPORATION
NOTICE OF 2015 ANNUAL MEETING OF SHAREHOLDERS
April 2,
2015
|
|
|
Date: |
|
Thursday, May 14, 2015 |
Time: |
|
11:30 a.m. local time |
Place: |
|
Wyndham Worldwide Corporation
22 Sylvan Way
Parsippany, New Jersey 07054
|
Purposes of the meeting:
-
- to elect seven Directors for a term expiring at the 2016 annual meeting
-
- to vote on an advisory resolution to approve executive compensation
-
- to vote on a proposal to ratify the appointment of Deloitte & Touche LLP to serve as our independent registered public
accounting firm for fiscal year 2015 and
-
- to transact any other business that may be properly brought before the meeting or any adjournment or postponement of the meeting.
The
matters specified for voting above are more fully described in the attached proxy statement. Only our shareholders of record at the close of business on March 19, 2015 will be entitled to
notice of and to vote at the meeting and any adjournments or postponements for which no new record date is set.
Who may attend the meeting:
Only shareholders, persons holding proxies from shareholders, invited representatives of the media and financial community and other guests of
Wyndham Worldwide Corporation may attend the meeting.
What to bring:
If you received (or requested and received) a printed copy of the proxy materials you should bring the enclosed Admission Ticket to gain admission to
the meeting. If you received a Notice of Internet Availability of Proxy Materials (Notice) or voting instructions and will not be requesting a printed copy of the proxy materials please bring the
Notice or voting instructions with you as your Admission Ticket. All persons attending the meeting must bring photo identification such as a valid driver's license or passport for purposes of personal
identification.
If your shares are held in the name of a broker, trust, bank or other nominee, you will also need to bring a proxy, letter or recent account statement from that broker, trust,
bank or nominee that confirms that you are the beneficial owner of those shares.
1
Table of Contents
Record Date:
March 19, 2015 is the record date for the meeting. This means that owners of Wyndham Worldwide common stock at the close of business on that
date are entitled to:
-
- receive notice of the meeting and
-
- vote at the meeting and any adjournments or postponements of the meeting for which no new record date is set.
Information About the Notice of Internet Availability of Proxy Materials:
Instead of mailing a printed copy of our proxy materials, including our Annual Report, to all of our shareholders, we provide access to these
materials in a fast and efficient manner via the Internet. This reduces the amount of paper necessary to produce these materials as well as the costs associated with mailing these materials to all
shareholders. Accordingly, on or about April 2, 2015, we will begin mailing a Notice to all shareholders as of March 19, 2015, and will post our proxy materials on the website referenced
in the Notice. As more fully described in the Notice, shareholders may choose to access our proxy materials on the website referred to in the Notice or may request to receive a printed set of our
proxy materials. In addition, the Notice and website provide information regarding how you may request to receive proxy materials in printed form by mail or electronically by email on an ongoing
basis.
Householding Information:
We have adopted a procedure approved by the Securities and Exchange Commission called householding. Under this procedure, shareholders of record who
have the same address and last name and have not previously requested electronic delivery of proxy materials will receive a single envelope containing the Notices for all shareholders having that
address. The Notice for each shareholder will include that shareholder's unique control number needed to vote his or her shares. This procedure will reduce our printing costs and postage fees.
If
you do not wish to participate in householding and prefer to receive your Notice in a separate envelope, please contact Broadridge Financial Solutions by calling their toll-free number
at (800) 542-1061 or through Broadridge Financial Solutions, Attn.: Householding Department, 51 Mercedes Way, Edgewood, New York 11717.
For
those shareholders who have the same address and last name and who request to receive a printed copy of the proxy materials by mail, we will send only one copy of such materials to each address
unless one or more of those shareholders notifies us, in the same manner described above, that they wish to receive a printed copy for each shareholder at that address.
Beneficial
shareholders may request information about householding from their banks, brokers or other holders of record.
Proxy Voting:
Your vote is important. Please vote your proxy promptly so your shares are represented, even if you plan to attend the annual
meeting. You may vote by Internet, by telephone, by requesting a printed copy of the proxy materials and using the enclosed proxy card or in person at the annual meeting.
Our proxy tabulator, Broadridge Financial Solutions, must receive any proxy that will not be delivered in person to the annual meeting by 11:59 p.m. Eastern Daylight
Time on Wednesday, May 13, 2015.
|
|
|
|
|
By order of the Board of Directors, |
|
|
|
|
|
Scott G. McLester
Corporate Secretary
|
2
Table of Contents
TABLE OF CONTENTS
i
Table of Contents
WYNDHAM WORLDWIDE CORPORATION
PROXY STATEMENT
The enclosed proxy materials are provided to you at the request of the Board of Directors of Wyndham Worldwide Corporation (Board) to encourage you
to vote your shares at our 2015 annual meeting of shareholders. This proxy statement contains information on
matters that will be presented at the meeting and is provided to assist you in voting your shares. References in this proxy statement to "we," "us," "our" and "Wyndham Worldwide" refer to Wyndham
Worldwide Corporation and our consolidated subsidiaries.
Our
Board made these materials available to you over the Internet or, upon your request, mailed you printed versions of these materials in connection with our 2015 annual meeting. We will mail a
Notice of Internet Availability of Proxy Materials (Notice) to our shareholders beginning on or about April 2, 2015 and will post our proxy materials on our website referenced in the Notice on
that same date. We are, on behalf of our Board, soliciting your proxy to vote your shares at our 2015 annual meeting of shareholders. We solicit proxies to give all shareholders of record an
opportunity to vote on matters that will be presented at the annual meeting.
FREQUENTLY ASKED QUESTIONS
When and where will the annual meeting be held?
The annual meeting will be held on Thursday, May 14, 2015 at 11:30 a.m. local time at Wyndham Worldwide Corporation, 22 Sylvan Way,
Parsippany, New Jersey 07054.
What am I being asked to vote on at the meeting?
You are being asked to vote on the following:
-
- the election of seven Directors for a one-year term (nominations for Director must comply with our By-Laws including the applicable
notice requirements)
-
- the approval of our executive compensation program
-
- the ratification of the appointment of Deloitte & Touche LLP to serve as our independent registered public accounting
firm for fiscal year 2015 and
-
- to transact any other business that may be properly brought before the meeting or any adjournment or postponement of the meeting.
We
are not aware of any other matters that will be brought before the shareholders for a vote at the annual meeting. If any other matters are properly presented for a vote the individuals named as
proxies will have discretionary authority to the extent permitted by law to vote on such matters according to their best judgment.
Who may vote and how many votes does a shareholder have?
All holders of record of our common stock as of the close of business on March 19, 2015 (record date) are entitled to vote at the meeting.
Each shareholder will have one vote for each share of our common stock held as of the close of business on the record date. As of the record date 120,269,432 shares of our common stock were
outstanding. There is no cumulative voting and the holders of our common stock vote together as a single class.
1
Table of Contents
How many votes must be present to hold the meeting?
The holders of a majority of the outstanding shares of our common stock entitled to vote at the meeting, or 60,134,717 shares (also known as a
quorum), must be present in person or by proxy at the meeting in order to constitute a quorum necessary to conduct the meeting. Abstentions and broker non-votes will be counted for the purposes of
establishing a quorum at the meeting.
A
broker non-vote occurs when a broker or other nominee submits a proxy that states that the broker does not vote for some or all of the proposals because the broker has not received instructions from
the beneficial owner on how to vote on the proposals and does not have discretionary authority to vote in the absence of instructions.
We
urge you to vote by proxy even if you plan to attend the meeting so that we will know as soon as possible that a quorum has been achieved.
How do I vote?
Even if you plan to attend the meeting you are encouraged to vote by proxy.
If
you are a shareholder of record, also known as a registered shareholder, you may vote in one of the following ways:
-
- by telephone by calling the toll-free number (800) 690-6903 (have your Notice
or proxy card in hand when you call)
-
- by Internet at http://www.proxyvote.com (have your Notice
or proxy card in hand when you access the website)
-
- if you received (or requested and received) a printed copy of the annual meeting materials, by returning the enclosed proxy card
(signed and dated) in the envelope provided or
-
- in person at the annual meeting (please see below under How do I attend the meeting?).
If
your shares are registered in the name of a bank, broker or other nominee, follow the proxy instructions on the form you receive from the bank, broker or other nominee. You may also vote in person
at the annual meeting (please see below under How do I attend the meeting?).
When
you vote by proxy your shares will be voted according to your instructions. If you sign your proxy card, vote by Internet or by telephone but do not specify how you want your shares to be voted
they will be voted as the Board recommends.
What if I am a participant in the Wyndham Worldwide Corporation Employee Savings Plan?
For participants in the Wyndham Worldwide Corporation Employee Savings Plan with shares of our common stock credited to their accounts, voting
instructions for the trustees of the plan are also being solicited through this proxy statement. In accordance with the provisions of the plan the trustee will vote shares of our common stock in
accordance with instructions received from the participants to whose accounts the shares are credited. If you do not instruct the plan trustee on how to vote the shares of our common stock credited to
your account the trustee will vote those shares in proportion to the shares for which instructions are received.
2
Table of Contents
How does the Board recommend that I vote?
The Board recommends the following votes:
-
- FOR the election of each of the Director nominees
-
- FOR the approval of our executive compensation program and
-
- FOR the ratification of the appointment of Deloitte & Touche LLP to serve as our independent registered public
accounting firm for fiscal year 2015
How many votes are required to approve each proposal?
In the election of Directors the affirmative vote of a plurality of the votes present in person or by proxy and entitled to vote at the meeting is
required. This means the Director nominees receiving the greatest number of votes will be elected and abstentions and broker non-votes will have no effect on the outcome of the vote. However, as
further described under Election of Directors, under the Board's Corporate Governance Guidelines any nominee for Director who receives a greater number of votes withheld than votes for election is
required to tender his or her resignation for consideration by the Corporate Governance Committee.
For
the remaining proposals, the affirmative vote of the holders of a majority of the shares represented at the meeting in person or by proxy and entitled to vote on the proposal will be required for
approval. Abstentions will have the effect of a vote against any of these proposals. Broker non-votes will have no effect on the outcome of these proposals.
If
your shares are registered in the name of a bank, broker or other financial institution and you do not give your broker or other nominee specific voting instructions for your shares, under rules of
the New York Stock Exchange, your record holder has discretion to vote your shares on the ratification of auditor proposal but does not have discretion to vote your shares on the election of Director
nominees or the advisory vote on executive compensation. Your broker, bank or other financial institution will not be permitted to vote on your behalf on the election of Director nominees or the
advisory vote on executive compensation unless you provide specific instructions before the date of the annual meeting by completing and returning the voting instruction or proxy card or following the
instructions provided to you to vote your shares by telephone or the Internet.
How do I attend the meeting?
If you received (or requested and received) a printed copy of the proxy materials, you should bring the enclosed Admission Ticket to gain admission
to the meeting. If you received a Notice or voting instructions and will not be requesting a printed copy of the proxy materials please bring the Notice or voting instructions with you as your
Admission Ticket. You must bring with you a photo identification such as a valid driver's license or passport for purposes of personal identification.
If
your shares are held in the name of a broker, trust, bank or other nominee, you will also need to bring a proxy, letter or recent account statement from that broker, trust, bank or nominee that
confirms that you are the beneficial owner of those shares.
Can I change or revoke my vote?
You may change or revoke your proxy at any time prior to the voting at the meeting by submitting a later dated proxy, by entering new instructions by
Internet or telephone, by giving timely written notice of such change or revocation to the Corporate Secretary or by attending the meeting and voting in person and requesting that your prior proxy not
be used.
3
Table of Contents
How are proxies solicited?
We retained D.F. King & Co, Inc. to advise and assist us in soliciting proxies at a cost of $9,000 plus reasonable expenses. Proxies
may also be solicited by our Directors, officers and employees personally, by mail, telephone or other electronic means. We will pay all costs relating to the solicitation of proxies. We will also
reimburse brokers, custodians, nominees and fiduciaries for reasonable expenses in forwarding proxy materials to beneficial owners of our common stock.
How do I make a shareholder proposal for the 2016 meeting?
Shareholders interested in presenting a proposal for inclusion in our proxy statement and proxy relating to our 2016 Annual Meeting of Shareholders
may do so by following the procedures prescribed in Rule 14a-8 under the Securities Exchange Act of 1934, as amended, and our By-Laws. To be eligible for inclusion in next year's proxy
statement, shareholder proposals must be received by the Corporate Secretary at our principal executive offices no later than the close of business on December 4, 2015.
In
general, any shareholder proposal to be considered at next year's annual meeting but not included in the proxy statement must be submitted in writing to and received by the Corporate Secretary at
our principal executive offices not earlier than January 15, 2016 and not later than February 14, 2016. However, if the date of the 2016 Annual Meeting of Shareholders is not within
30 days before or after May 14, 2016 then a shareholder will be able to submit a proposal for consideration at the annual meeting not later than the close of business on the
10th day following the day on which public disclosure of the date of the annual meeting was made or such notice of the date of such annual meeting was mailed whichever occurs first. Any
notification to bring any proposal before an Annual Meeting of Shareholders must comply with the requirements of our By-Laws. A shareholder may obtain a copy of our By-Laws on our website or by
writing to our Corporate Secretary.
Shareholders
may also nominate directors for election at an annual meeting. To nominate a Director shareholders must comply with provisions of applicable law and our By-Laws. The Corporate Governance
Committee will also consider shareholder recommendations for candidates to the Board sent to the Committee c/o the Corporate Secretary. See below under Director Nomination Process for information
regarding nomination or recommendation of a Director.
4
Table of Contents
GOVERNANCE OF THE COMPANY
Strong corporate governance is an integral part of our core values. Our Board is committed to having sound corporate governance principles and
practices. Please visit our website at www.WyndhamWorldwide.com under the Investors/Corporate Governance page (which can be reached by clicking on the Investors link
followed by the Corporate Governance link) for the Board's Corporate Governance Guidelines and Director Independence Criteria, the Board-approved charters for the Audit, Compensation and Corporate
Governance Committees and related information. These guidelines and charters may be obtained by writing to our Corporate Secretary at Wyndham Worldwide Corporation, 22 Sylvan Way, Parsippany, New
Jersey 07054.
Corporate Governance Guidelines
Our Board has adopted Corporate Governance Guidelines that along with the charters of the Board Committees, Director Independence Criteria and Code
of Business Conduct and Ethics for Directors, provide the framework for our governance. The governance rules for companies listed on the New York Stock Exchange and those contained in the Securities
and Exchange Commission (SEC) rules and regulations are reflected in the guidelines. The Board reviews these principles and other aspects of governance periodically. The Corporate Governance
Guidelines are available on the Investors/Corporate Governance page of our website at www.WyndhamWorldwide.com.
Director Independence Criteria
The Board adopted the Director Independence Criteria set out below for its evaluation of the materiality of Director relationships with us. The
Director Independence Criteria contain independence standards that exceed the independence standards specified in the listing standards of the New York Stock Exchange. The Director Independence
Criteria are available on the Investors/Corporate Governance page of our website at www.WyndhamWorldwide.com.
A
Director who satisfies all of the following criteria shall be presumed to be independent under our Director Independence Criteria:
-
- Wyndham Worldwide does not currently employ and has not within the last three years employed the Director or any of his or her
immediate family members (except in the case of immediate family members, in a non-executive officer capacity).
-
- The Director is not currently and has not within the last three years been employed by Wyndham Worldwide's present auditors nor has
any of his or her immediate family members been so employed (except in non-professional capacity not involving Wyndham Worldwide business).
-
- Neither the Director nor any of his or her immediate family members is or has been within the last three years part of an interlocking
directorate in which an executive officer of Wyndham Worldwide serves on the compensation (or equivalent) committee of another company that employs the Director or his or her immediate family member
as an executive officer.
-
- The Director is not a current employee nor is an immediate family member a current executive officer of a company that has made
payments to or received payments from Wyndham Worldwide for property or services in an amount in any of the last three fiscal years exceeding the greater of $750,000 or 1% of such other company's
consolidated gross revenues.
-
- The Director currently does not have or has not had within the past three years a personal services contract with Wyndham Worldwide or
its executive officers.
5
Table of Contents
-
- The Director has not received and the Director's immediate family member has not received during any twelve-month period within the
last three years more than $100,000 in direct compensation from Wyndham Worldwide (other than Board fees).
-
- The Director is not currently an officer or director of a foundation, university or other non-profit organization to which Wyndham
Worldwide within the last three years gave directly or indirectly through the provision of services more than the greater of 1% of the consolidated gross revenues of such organization during any
single fiscal year or $100,000.
Guidelines for Determining Director Independence
Our Corporate Governance Guidelines and Director Independence Criteria provide for director independence standards that meet or exceed those of the
New York Stock Exchange. These standards require the Board to affirmatively determine that each Director has no material relationship with Wyndham Worldwide other than as a Director.
In
accordance with these standards and criteria the Board undertook its annual review of the independence of its Directors. During this review the Board considered whether there are any relationships
or related party transactions between each Director, any member of his or her immediate family or other affiliated entities and us and our subsidiaries and affiliates. The purpose of this review was
to determine whether any such relationships or transactions existed that were inconsistent with a determination that the Director is independent.
The
Board follows a number of procedures to review related party transactions. We maintain a written policy governing related party transactions that requires Board approval of related party
transactions exceeding $120,000. Each Board member answers a questionnaire designed to disclose conflicts and related party transactions. We also review our internal records for related party
transactions. Based on a review of these standards and materials, none of our non-management Directors had or has any relationship with us other than as a Director.
As
a result of its review the Board affirmatively determined that the following Directors are independent of us and our management as required by the New York Stock Exchange listing standards and the
Director Independence Criteria: Myra J. Biblowit, James E. Buckman, George Herrera, The Right Honourable Brian Mulroney, Pauline D.E. Richards and Michael H. Wargotz. All members of the Audit,
Compensation and Corporate Governance Committees are independent Directors as required by the New York Stock Exchange listing standards, SEC rules and the Director Independence Criteria.
Committees of the Board
The following describes our Board Committees and related matters. The composition of the Committees is provided immediately after.
Audit Committee
Responsibilities include:
-
- Appoints our independent registered public accounting firm to perform an integrated audit of our consolidated financial statements and
internal control over financial reporting.
-
- Pre-approves all services performed by our independent registered public accounting firm.
-
- Provides oversight on the external reporting process and the adequacy of our internal controls.
6
Table of Contents
-
- Reviews the scope, planning, staffing and budgets of the audit activities of the independent registered public accounting firm and our
internal auditors.
-
- Reviews services provided by our independent registered public accounting firm and other disclosed relationships as they bear on the
independence of our independent registered public accounting firm and provides oversight on hiring policies with respect to employees or former employees of the independent auditor.
-
- Maintains procedures for the receipt, retention and resolution of complaints regarding accounting, internal controls and auditing
matters.
All
members of the Audit Committee are independent Directors under the Board's Director Independence Criteria and applicable regulatory and listing standards. The Board in its business judgment
determined that each member of the Audit Committee is financially literate, knowledgeable and qualified to review financial statements in accordance with applicable listing standards. The Board also
determined that both Pauline D.E. Richards and Michael H. Wargotz are audit committee financial experts within the meaning of applicable SEC rules.
The
Audit Committee Charter is available on the Investors/Corporate Governance page of our website at www.WyndhamWorldwide.com.
Audit Committee Report
The Audit Committee of the Board of Directors assists the Board in fulfilling its oversight responsibilities for the external reporting process and
the adequacy of Wyndham Worldwide's internal controls. Specific responsibilities of the Audit Committee are set forth in the Audit Committee Charter adopted by the Board. The Charter is available on
the Investors/Corporate Governance page of our website at www.WyndhamWorldwide.com.
The
Audit Committee is comprised of three Directors, all of whom meet the standards of independence adopted by the New York Stock Exchange and the SEC. The Audit Committee appoints Wyndham Worldwide's
independent registered public accounting firm. The Audit Committee approves in advance all services to be performed by Wyndham Worldwide's independent registered public accounting firm in accordance
with SEC rules subject to the de minimis exceptions for non-audit services.
Management
is responsible for Wyndham Worldwide's financial reporting process including our system of internal controls and for the preparation of consolidated financial statements in
compliance with generally accepted accounting principles, applicable laws and regulations. In addition, management is responsible for establishing, maintaining and assessing the effectiveness of
Wyndham Worldwide's internal control over financial reporting. Deloitte & Touche LLP, Wyndham Worldwide's independent registered public accounting firm, is responsible for expressing an
opinion on Wyndham Worldwide's consolidated financial statements and the effectiveness of Wyndham Worldwide's internal control over financial reporting. The Audit Committee reviewed and discussed
Wyndham Worldwide's 2014 Annual Report on Form 10-K, including the audited consolidated financial statements of Wyndham Worldwide for the year ended December 31, 2014, with management
and representatives of Deloitte & Touche LLP. It is not the Audit Committee's duty or responsibility to conduct auditing or accounting reviews or procedures.
The
Audit Committee also discussed with Deloitte & Touche LLP matters required to be discussed by applicable standards and rules of the PCAOB and the SEC. The Audit Committee also
received from Deloitte & Touche LLP the written disclosures required by applicable standards and rules of the PCAOB and the SEC regarding Deloitte & Touche LLP's
communications with the Audit Committee concerning independence, and discussed with Deloitte & Touche LLP the independence of Deloitte & Touche LLP.
7
Table of Contents
The
Audit Committee also considered whether the permissible non-audit services provided by Deloitte & Touche LLP to Wyndham Worldwide are compatible with Deloitte &
Touche LLP maintaining its independence. The Audit Committee satisfied itself as to the independence of Deloitte & Touche LLP.
Based
on the Audit Committee's review and discussions described above, the Audit Committee recommended to the Board of Directors that the audited consolidated financial statements be included in
Wyndham Worldwide's Annual Report on Form 10-K for the year ended December 31, 2014.
AUDIT
COMMITTEE
Michael
H. Wargotz (Chair)
George Herrera
Pauline D.E. Richards
Compensation Committee
Responsibilities include:
-
- Provides oversight on our executive compensation programs consistent with corporate objectives and shareholder interests.
-
- Reviews and approves Chief Executive Officer (CEO) and other senior management compensation.
-
- Approves grants of long-term incentive awards and our senior executives' annual incentive compensation under our compensation plans.
-
- Reviews and considers the independence of advisers to the Committee.
For
additional information regarding the Compensation Committee's processes and procedures see below under Executive Compensation Compensation Discussion and
Analysis Compensation Committee Matters.
All
members of the Compensation Committee are independent Directors under the Board's Director Independence Criteria and applicable regulatory and listing standards.
The
Compensation Committee Report is provided below under Executive Compensation. The Compensation Committee Charter is available on the Investors/Corporate Governance page on our website at
www.WyndhamWorldwide.com.
Compensation Committee Interlocks and Insider Participation
During 2014, Mr. Mulroney, Ms. Biblowit and Ms. Richards served on our Compensation Committee. There are no compensation
committee interlocks between Wyndham Worldwide and other entities involving our executive officers and Directors that are required to be reported under SEC rules.
Corporate Governance Committee
Responsibilities include:
-
- Recommends to the Board nominees for election to the Board.
8
Table of Contents
-
- Reviews principles, policies and procedures affecting Directors and the Board's operation and effectiveness.
-
- Provides oversight on the evaluation of the Board and its effectiveness.
-
- Reviews and makes recommendations on Director compensation.
All
members of the Corporate Governance Committee are independent Directors under the Board's Director Independence Criteria and applicable regulatory and listing standards.
The
Corporate Governance Committee Charter is available on the Investors/Corporate Governance page on our website at www.WyndhamWorldwide.com.
Executive Committee
The Executive Committee may exercise all of the authority of the Board when the Board is not in session, except that the Executive Committee does not
have the authority to take any action which legally or under our internal governance policies may be taken only by the full Board.
Committee Membership
The following chart provides the current committee membership and the number of meetings that each committee held during 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Director |
|
|
|
Audit
Committee |
|
|
|
Compensation
Committee |
|
|
|
Governance
Committee |
|
|
|
Executive
Committee |
|
|
|
|
Myra J. Biblowit
|
|
|
|
|
|
|
|
M |
|
|
|
M |
|
|
|
|
|
|
|
|
James E. Buckman |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
M |
|
|
|
|
George Herrera |
|
|
|
M |
|
|
|
|
|
|
|
C |
|
|
|
|
|
|
|
|
Stephen P. Holmes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C |
|
|
|
|
The Right Honourable Brian Mulroney |
|
|
|
|
|
|
|
C |
|
|
|
M |
|
|
|
|
|
|
|
|
Pauline D.E. Richards |
|
|
|
M |
|
|
|
M |
|
|
|
|
|
|
|
|
|
|
|
|
Michael H. Wargotz |
|
|
|
C |
|
|
|
|
|
|
|
|
|
|
|
M |
|
|
|
|
Number of Meetings in 2014 |
|
|
|
9 |
|
|
|
5 |
|
|
|
4 |
|
|
|
3 |
|
|
The
Board held four meetings during 2014. Each Director attended at least 75% of the meetings of the Board and the committees of the Board on which the Director served.
Directors
fulfill their responsibilities not only by attending Board and committee meetings but also through communication with the Chairman and CEO, Lead Director and other members of management
relative to matters of mutual interest and concern to Wyndham Worldwide.
9
Table of Contents
Board Leadership Structure
The Board believes that Wyndham Worldwide's CEO is best situated to serve as Chairman because he is the Director most familiar with our business and
industry and most capable of effectively identifying strategic priorities and leading the discussion and execution of strategy. Independent Directors and management have different perspectives and
roles in strategy development. Our independent Directors bring experience, oversight and expertise from outside our company and industry while the CEO brings company-specific experience and expertise.
The Board believes that the combined role of Chairman and CEO promotes strategy development and execution and facilitates information flow between management and the Board all of which are essential
to effective governance.
One
of the key responsibilities of the Board is to review our strategic direction and hold management accountable for the execution of strategy once it is developed. The Board believes the combined
role of Chairman and CEO, together with an independent Lead Director having the duties described below, is in the best interest of shareholders because it provides the appropriate balance between
strategy review and independent oversight of management.
Lead Director
The Board selected James E. Buckman, an independent Director who serves as a member of the Executive Committee, to serve as the Board's Lead
Director. The Lead Director serves as a key advisor to the Chairman and the Board; chairs executive sessions of the non-management Directors and provides feedback to the Chairman; chairs meetings of
the Board in the absence of the Chairman; and reviews in advance and consults with the Chairman when necessary regarding the agendas for all Board and committee meetings.
Oversight of Risk Management
The Board has an active role, as a whole and at the committee level, in providing oversight with respect to management of our risks. The Board
focuses on the most significant risks facing us and our general risk management strategy and seeks to ensure that risks undertaken by us are consistent with a level of risk that is appropriate for our
company and aligned with the achievement of our business objectives and strategies.
The
Board regularly reviews information regarding risks associated with our finances, credit and liquidity; our business, operations and strategy; legal, regulatory and compliance matters; and
reputational exposure. The Audit Committee provides oversight on our programs for risk assessment and risk management, including with respect to financial accounting and reporting and compliance
risks. The Compensation Committee provides oversight on our assessment and management of risks relating to our executive compensation. The Corporate Governance Committee provides oversight on our
management of risks associated with the independence of the Board and potential conflicts of interest. While each committee is responsible for providing oversight with respect to the management of
risks, the entire Board of Directors is regularly informed about our risks through committee reports and management presentations.
While
the Board and the committees provide oversight with respect to our risk management, our CEO and other senior management are primarily responsible for day-to-day risk management analysis and
mitigation and report to the full Board or the relevant committee regarding risk management. Our leadership structure, with Mr. Holmes serving as Chairman and CEO, also enhances the Board's
effectiveness in risk oversight due to Mr. Holmes' extensive knowledge of our business and operations, facilitating the Board's oversight of key risks. We believe this division
of responsibility and leadership structure is the most effective approach for addressing our risk management.
10
Table of Contents
Executive Sessions of Non-Management Directors
The Board meets regularly without any members of management present. The Lead Director chairs these sessions.
Communications with the Board and Directors
Shareholders and other parties interested in communicating directly with the Board, an individual non-management Director or the non-management
Directors as a group may do so by writing our Corporate Secretary at Wyndham Worldwide Corporation, 22 Sylvan Way, Parsippany, New Jersey 07054. The Corporate Secretary will forward the
correspondence only to the intended recipients. However, prior to forwarding any correspondence, the Corporate Secretary will review it and in his discretion will not forward correspondence deemed to
be of a commercial nature or otherwise not appropriate for review by the Directors.
Director Attendance at Annual Meeting of Shareholders
As provided in the Board's Corporate Governance Guidelines, Directors are expected to attend our annual meeting of shareholders absent exceptional
cause. All of our Directors attended our 2014 annual meeting and are expected to attend the 2015 annual meeting.
Code of Business Conduct and Ethics
The Board has adopted a Code of Business Conduct and Ethics for Directors with ethics guidelines specifically applicable to Directors. In addition,
we adopted Business Principles applicable to all our associates, including our CEO, Chief Financial Officer and Chief Accounting Officer. We will disclose on our website any amendment to or waiver
from a provision of our Business Principles or Code of Business Conduct and Ethics for Directors as may be required and within the time period specified under applicable SEC and NYSE rules. The Code
of Business Conduct and Ethics for Directors and our Business Principles are available on the Investors/Corporate Governance page of our website at
www.WyndhamWorldwide.com. Copies of these documents may also be obtained free of charge by writing to our Corporate Secretary.
Director Nomination Process
Role of Corporate Governance Committee. The Corporate Governance Committee is responsible for recommending the Director nominees for election to the Board. The
Committee considers the appropriate balance of experience, skills and characteristics required of the Board when considering potential candidates to serve on the Board. Nominees for Director are
selected on the basis of their depth and breadth of experience, skills, wisdom, integrity, ability to make independent analytical inquiries, understanding of our business environment and willingness
to devote adequate time to Board duties.
The
Committee also focuses on issues of diversity, such as diversity of gender, race and national origin, education, professional experience and differences in viewpoints and skills. The Committee
does not have a formal policy with respect to diversity, however, the Board and the Committee believe that it is essential that the Board members represent diverse viewpoints. In considering
candidates for the Board, the Committee considers the entirety of each candidate's credentials in the context of these standards. For the nomination of continuing Directors for re-election, the
Committee also considers the individual's contributions to the Board.
11
Table of Contents
All
of our Directors bring to our Board a wealth of executive leadership experience derived from their service as senior executives of large organizations as well as extensive board experience.
Certain individual qualifications, experience and skills of our Directors that led the Board to conclude that each nominee or Director should serve as our Director are described below under Election
of Directors.
Identification and Evaluation Process. The process for identifying and evaluating nominees to the Board is initiated by identifying a candidate who meets the
criteria for selection as a nominee and has the specific qualities or skills being sought based on input from members of the Board and, if the Committee deems appropriate, a third-party search firm.
These candidates will be evaluated by the Committee by reviewing the candidates' biographical information and qualifications and checking the candidates' references. Qualified nominees will be
interviewed by at least one member of the Committee. Using the input from the interview and other information it obtains, the Committee evaluates whether the prospective candidate is qualified to
serve as a Director and whether the Committee should recommend to the Board that the Board nominate the prospective candidate for election by the shareholders or to fill a vacancy on the Board.
Shareholder Recommendations of Nominees. The Committee will consider written recommendations from shareholders for nominees for Director. Recommendations should be
submitted to the Corporate Governance Committee, c/o the Corporate Secretary, and include at least the following: name of the shareholder and evidence of the person's ownership of our common stock,
number of shares owned and the length of time of ownership, name of the candidate, the candidate's resume or a listing of his or her qualifications to be a Director and the person's consent to be
named as a Director if selected by the Corporate Governance Committee and nominated by the Board. To evaluate nominees for Directors recommended by shareholders, the Committee intends to use a
substantially similar evaluation process as described above.
Shareholder Nominations and By-Law Procedures. Our By-Laws establish procedures pursuant to which a shareholder may nominate a person for election to the Board.
Our By-Laws are posted on our website under Investors/Corporate Governance at www.WyndhamWorldwide.com. To nominate a person for election to the Board, a shareholder must
set forth all information relating to the nominee that is required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of
directors or is otherwise required in each case pursuant to Section 14 under the Securities Exchange Act of 1934, as amended, and related rules and regulations. Such notice must also contain
information specified in the By-Laws regarding the Director nominee, information about the shareholder making the nomination, including name and address, number of shares owned and certain
representations regarding such a nomination. We may require any proposed nominee to furnish information concerning his or her eligibility to serve as an independent Director or that could be material
to a reasonable shareholder's understanding of the independence of the nominee. Such notice must be accompanied by the proposed nominee's consent to being named as a nominee and to serve as a Director
if elected.
To
nominate a person for election to the Board at our annual meeting of shareholders, written notice of a shareholder nomination must be delivered to our Corporate Secretary not less than 90 nor more
than 120 days prior to the anniversary date of the prior year's annual meeting. However, if our annual meeting is advanced or delayed by more than 30 days from the anniversary date of
the previous year's meeting, a shareholder's written notice will be timely if it is delivered by no later than the close of business on the 10th day following the day on which public disclosure
of the date of the annual meeting is made or the notice of the date of the annual meeting was mailed, whichever occurs first. A shareholder may make nominations of persons for election to the Board at
a special meeting if the shareholder delivers written notice to our Corporate Secretary not later than the close of business on the 10th day following the day on which public disclosure of the
date such special meeting was made or notice of such special meeting was mailed, whichever occurs first. At a special meeting of shareholders, only such business may be conducted as shall have been
brought before the meeting under our notice of meeting.
12
Table of Contents
Compensation of Directors
Non-management Directors receive compensation for Board service designed to compensate them for their Board responsibilities and align their
interests with the interests of shareholders. A management Director receives no additional compensation for Board service.
In
November 2013, the Corporate Governance Committee considered and recommended based on a review conducted by Aon Hewitt, our compensation consultant, that the Director compensation program for 2014
remain generally consistent with 2013. The following table describes 2014 annual retainer and committee chair and membership fees for non-management Directors. Our non-management Directors do not
receive additional fees for attending Board or committee meetings. In addition to these fees, the 2014 compensation of each of our non-management Directors included a $75,000 annual equity grant of
time-vested restricted stock units (RSUs) which vest over a four-year period.
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash-Based |
|
Stock-Based |
|
Total |
|
Lead Director |
|
$ |
132,500 |
|
$ |
132,500 |
|
$ |
265,000 |
|
Director |
|
$ |
105,000 |
|
$ |
105,000 |
|
$ |
210,000 |
|
Audit Committee chair |
|
$ |
22,500 |
|
$ |
22,500 |
|
$ |
45,000 |
|
Audit Committee member |
|
$ |
12,500 |
|
$ |
12,500 |
|
$ |
25,000 |
|
Compensation Committee chair |
|
$ |
17,500 |
|
$ |
17,500 |
|
$ |
35,000 |
|
Compensation Committee member |
|
$ |
10,000 |
|
$ |
10,000 |
|
$ |
20,000 |
|
Corporate Governance Committee chair |
|
$ |
15,000 |
|
$ |
15,000 |
|
$ |
30,000 |
|
Corporate Governance Committee member |
|
$ |
8,750 |
|
$ |
8,750 |
|
$ |
17,500 |
|
Executive Committee member |
|
$ |
10,000 |
|
$ |
10,000 |
|
$ |
20,000 |
|
In
November 2014, upon the recommendation of the Corporate Governance Committee, the Board approved an increase in the value of the annual grant of time-vested RSUs from $75,000 to $100,000 for 2015.
The
annual Director retainer and committee chair and membership fees are paid on a quarterly basis 50% in cash and 50% in Wyndham Worldwide stock. The number of shares of stock issued is based
on our stock price on the quarterly determination date. Directors may elect to receive the
stock-based portion of their fees in the form of common stock or deferred stock units (DSUs). Directors may also elect to defer any cash-based compensation or vested RSUs in the form of DSUs. A DSU
entitles the Director to receive one share of common stock following the Director's retirement or termination of service from the Board for any reason and is credited with dividend equivalents during
the deferral period. The Director may not sell or receive value from any DSU prior to termination of service.
We
make available to each Director a term life insurance policy owned by us with a $1.1 million death benefit payable $1 million to us which benefit we will donate to a charitable
beneficiary of the Director's choice and $100,000 paid directly to a personal beneficiary of the Director's choice. In the event we undergo a change-in-control or a Director retires we will pay the
premiums for the policies for one year from the date of the change-in-control or retirement as applicable.
We
provide for a three-for-one company match of a Director's qualifying charitable contributions up to a company contribution of $75,000 per year. Previously Directors were provided with a
three-for-one company match up to $60,000 per year. This increase was approved by the Board in November 2014 upon the recommendation of the Corporate Governance Committee.
We
maintain a policy to award our Directors annually 500,000 Wyndham Rewards Points. These Wyndham Rewards Points have an approximate value of $2,245 and may be redeemed for numerous rewards options
including stays at Wyndham properties. Previously Directors received 400,000 Wyndham Rewards Points with an approximate value of $1,800. This increase was approved by the Board in November 2014 upon
the recommendation of the Corporate Governance Committee.
13
Table of Contents
2014 Director Compensation Table
The following table describes compensation we paid our non-management Directors for 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name |
|
|
|
|
Fees Paid
in Cash
($) |
|
|
|
|
Stock
Awards
($)(a)(b) |
|
|
|
|
All Other
Compensation
($)(c) |
|
|
|
|
Total
($) |
|
|
|
|
Myra J. Biblowit |
|
|
|
|
123,907 |
|
|
|
|
198,560 |
|
|
|
|
107,335 |
|
|
|
|
429,802 |
|
|
|
|
James E. Buckman |
|
|
|
|
142,662 |
|
|
|
|
217,350 |
|
|
|
|
131,399 |
|
|
|
|
491,411 |
|
|
|
|
George Herrera |
|
|
|
|
132,714 |
|
|
|
|
207,324 |
|
|
|
|
71,797 |
|
|
|
|
411,835 |
|
|
|
|
The Right Honourable Brian Mulroney |
|
|
|
|
131,437 |
|
|
|
|
206,063 |
|
|
|
|
158,821 |
|
|
|
|
496,321 |
|
|
|
|
Pauline D.E. Richards |
|
|
|
|
127,672 |
|
|
|
|
202,273 |
|
|
|
|
103,773 |
|
|
|
|
433,718 |
|
|
|
|
Michael H. Wargotz |
|
|
|
|
137,687 |
|
|
|
|
212,300 |
|
|
|
|
64,654 |
|
|
|
|
414,641 |
|
|
- (a)
- Represents
the aggregate grant date fair value of stock awards computed in accordance with Financial Accounting Standards Board Accounting Standards
Codification Topic 718. Each Director was granted a RSU award with a grant date fair value of $75,000 which vests ratably over four years. The remaining amount in each row represents the aggregate
grant date fair value of retainer fees paid on a quarterly basis in the form of common stock and/or DSUs.
- (b)
- Shares
of our common stock issuable for DSUs at December 31, 2014 were as follows: Ms. Biblowit, 44,291; Mr. Buckman, 38,990;
Mr. Herrera, 31,245; Mr. Mulroney, 63,625; Ms. Richards, 34,425; and Mr. Wargotz, 41,205. Shares of our common stock issuable for RSUs at December 31, 2014 were as
follows: Ms. Biblowit, 2,802; Mr. Buckman, 2,802; Mr. Herrera, 2,802; Mr. Mulroney, 2,802; Ms. Richards, 2,802; and Mr. Wargotz, 2,802.
- (c)
- Includes
amounts attributable to charitable matching contributions made on behalf of the Director, the value of DSUs credited for dividends paid on DSUs
outstanding on the record date for such dividends, the value of dividends paid on vesting of RSUs, the value of Wyndham Rewards Points and life insurance premiums paid by us, as applicable. For
Mr. Buckman this amount also includes an amount attributable to spousal travel.
The
value of DSUs credited to our Directors for dividends paid on outstanding DSUs were as follows: Ms. Biblowit, $60,334; Mr. Buckman, $52,843; Mr. Herrera, $43,261;
Mr. Mulroney, $87,043; Ms. Richards, $47,663; and Mr. Wargotz, $55,950. The value of dividends paid to our Directors on vesting of RSUs were as follows: Ms. Biblowit,
$1,236; Mr. Buckman, $1,236; Mr. Herrera, $1,236; Mr. Mulroney, $1,236; Ms. Richards, $1,236; and Mr. Wargotz, $1,236. The value of charitable matching contributions
in excess of $10,000 were as follows: Ms. Biblowit, $43,965; Mr. Buckman, $75,000; Mr. Herrera, $25,500; Mr. Mulroney, $68,742; and Ms. Richards, $51,000.
Non-Management Director Stock Ownership Guidelines
The Corporate Governance Guidelines require each non-management Director to comply with Wyndham Worldwide's Non-Management Director Stock Ownership
Guidelines. These guidelines require each non-management Director to beneficially own an amount of our stock equal to the greater of a multiple of at least five times the cash portion of the annual
retainer or two and one-half times the total retainer value without regard to Board committee fees. DSUs and RSUs credited to a Director count towards satisfaction of the guidelines. As of
December 31, 2014, all of our non-management Directors exceeded the stock ownership requirements.
14
Table of Contents
Ownership of Company Stock
The following table describes the beneficial ownership of our common stock for the following persons as of December 31, 2014: each executive
officer named in the Summary Compensation Table below (who we refer to in this proxy statement as named executive officers), each Director, each person who to our knowledge beneficially owns in excess
of 5% of our common stock and all of our Directors and executive officers as a group. The percentage values are based on 121,143,128 shares of our common stock outstanding as of December 31,
2014. The principal address for each Director, nominee and executive officer of Wyndham Worldwide is 22 Sylvan Way, Parsippany, New Jersey 07054.
|
|
|
|
|
|
|
|
|
Name |
|
Number of Shares |
|
% of Class |
|
|
The Vanguard Group |
|
9,619,017 |
(a) |
7.8% |
|
|
FMR LLC |
|
7,984,453 |
(b)
|
6.5% |
|
|
BlackRock, Inc. |
|
7,427,692 |
(c) |
6.0% |
|
|
Thomas F. Anderson |
|
39,651 |
(d)(e)
|
* |
|
|
Geoffrey A. Ballotti |
|
146,808 |
(d)(e) |
* |
|
|
Myra J. Biblowit |
|
55,513 |
(d)(e)(f)
|
* |
|
|
James E. Buckman |
|
45,819 |
(d)(e)(f)(g) |
* |
|
|
Thomas G. Conforti |
|
136,671 |
(d)(e)
|
* |
|
|
Eric A. Danziger |
|
22,436 |
(d)(e) |
* |
|
|
Franz S. Hanning |
|
79,661 |
(d)(e)
|
* |
|
|
George Herrera |
|
32,099 |
(d)(e)(f) |
* |
|
|
Stephen P. Holmes |
|
1,568,400 |
(d)(e)(h)(i)
|
1.3% |
|
|
The Right Honourable Brian Mulroney |
|
68,337 |
(d)(e)(f) |
* |
|
|
Pauline D.E. Richards |
|
42,143 |
(d)(e)(f)
|
* |
|
|
Michael H. Wargotz |
|
42,738 |
(d)(e)(f) |
* |
|
|
All Directors and executive officers as a group (16 persons) |
|
2,437,978 |
(j)
|
2.0% |
- *
- Amount
represents less than 1% of outstanding common stock.
- (a)
- We
have been informed by Amendment No. 5 to a report on Schedule 13G filed with the SEC on February 10, 2015 by The Vanguard Group
(TVG) that TVG beneficially owns 9,619,017 shares of our common stock with sole voting power over 214,984 shares, shared voting power over no shares, sole dispositive power over 9,415,623 shares and
shared dispositive power over 203,394 shares. The principal business address for TVG is 100 Vanguard Boulevard, Malvern, Pennsylvania 19355.
- (b)
- We
have been informed by a report on Schedule 13G filed with the SEC on February 13, 2015 by FMR LLC and affiliates named in such
report (FMR) that FMR beneficially owns 7,984,453 shares of our common stock with sole voting power over 459,829 shares, shared voting power over no shares, sole dispositive power over 7,984,453
shares and shared dispositive power over no shares. The principal business address for FMR is 245 Summer Street, Boston, Massachusetts 02210.
- (c)
- We
have been informed by Amendment No. 2 to a report on Schedule 13G filed with the SEC on January 30, 2015 by BlackRock, Inc.
and affiliates named in such report (BlackRock) that BlackRock beneficially owns 7,427,692 shares of our common stock with sole voting power over 6,338,697 shares, shared voting power over no shares,
sole dispositive power over 7,427,692 shares and shared dispositive power over no shares. The principal business address for BlackRock is 55 East 52nd Street, New York, New York 10022.
- (d)
- Excludes
shares of our common stock issuable upon vesting of RSUs after 60 days from December 31, 2014 as follows: Mr. Anderson,
34,796; Mr. Ballotti, 59,814; Ms. Biblowit, 1,815; Mr. Buckman, 1,815; Mr. Conforti, 58,984; Mr. Hanning, 62,524; Mr. Herrera, 1,815; Mr. Holmes,
124,705; Mr. Mulroney; 1,815; Ms. Richards, 1,815; and Mr. Wargotz, 1,815. Excludes performance-vested restricted stock units (PVRSUs) granted in 2013 and 2014 which vest, if at
all, after 60 days from December 31, 2014 as follows: Mr. Anderson, 22,583; Mr. Ballotti, 38,565; Mr. Conforti, 37,735; Mr. Danziger, 11,527;
Mr. Hanning, 39,250; and Mr. Holmes, 161,667.
- (e)
- Includes
shares of our common stock issuable upon vesting of RSUs within 60 days of December 31, 2014: Mr. Anderson, 26,190;
Mr. Ballotti, 47,957; Ms. Biblowit, 987; Mr. Buckman, 987; Mr. Conforti, 47,542; Mr. Hanning, 51,616; Mr. Herrera, 987; Mr. Holmes, 99,348;
Mr. Mulroney, 987; Ms. Richards, 987; and Mr. Wargotz, 987. Includes shares of our common stock issuable upon vesting of PVRSUs within 60 days of December 31, 2014
as follows: Mr. Anderson, 13,461; Mr. Ballotti, 24,680; Mr. Conforti, 24,680; Mr. Danziger, 22,436; Mr. Hanning, 28,045; and Mr. Holmes, 67,309.
15
Table of Contents
- (f)
- Includes
shares of our common stock issuable for DSUs as of December 31, 2014 or within 60 days of December 31, 2014 as follows:
Ms. Biblowit, 44,102; Mr. Buckman, 38,824; Mr. Herrera, 31,112; Mr. Mulroney, 63,353; Ms. Richards, 34,277; and Mr. Wargotz, 41,029.
- (g)
- Includes
3,220 shares held in Mr. Buckman's IRA.
- (h)
- Includes
586,111 shares of our common stock which Mr. Holmes has the right to acquire through the exercise of stock-settled stock appreciation rights
within 60 days of December 31, 2014.
- (i)
- Excludes
135,117 shares of our common stock underlying stock-settled stock appreciation rights held by Mr. Holmes which are not currently exercisable
and are not scheduled to vest within 60 days of December 31, 2014.
- (j)
- Includes
or excludes, as the case may be, shares of common stock as indicated in the preceding footnotes. In addition, with respect to our other executive
officers who are not named executive officers, this amount includes 62,405 shares and 28,409 shares of our common stock issuable upon vesting of RSUs and PVRSUs, respectively, within 60 days
from December 31, 2014, and excludes 80,967 shares and 46,644 shares of our common stock issuable upon vesting of RSUs and PVRSUs, respectively, after 60 days from December 31,
2014.
Section 16(a) Beneficial Ownership Reporting Compliance
Our Directors and executive officers and our ten percent shareholders are required to file with the SEC reports of ownership and changes in ownership
of our common stock. All 2014 reports were filed on time.
16
Table of Contents
ELECTION OF DIRECTORS
At the date of this proxy statement, the Board of Directors consists of seven members, six of whom are non-management Directors and independent
Directors under applicable listing standards and our corporate governance documents. The Board was previously divided into three classes. Prior to our 2013 annual meeting of shareholders, each of the
three classes was elected to serve three-year terms which were staggered such that one-third of the Board membership, or as near to one-third as possible, was elected at each annual meeting. At our
2012 annual meeting, our shareholders approved amendments to our Certificate of Incorporation to phase out the classification of the Board and to provide instead for the annual election of Directors
commencing with those Directors up for election at our 2013 annual meeting. Directors previously elected to serve three-year terms will serve out the remainder of such terms before standing for
re-election. At last year's meeting, four Directors were elected to a term expiring at this year's annual meeting. These four Directors as well as three Directors whose
three-year terms will expire at this year's meeting have been nominated by the Board for re-election.
Accordingly,
at this year's meeting, all seven Directors are to be elected for terms expiring at the 2016 annual meeting. The Corporate Governance Committee nominated Stephen P. Holmes, Myra J.
Biblowit, James E. Buckman, George Herrera, The Right Honourable Brian Mulroney, Pauline D.E. Richards and Michael H. Wargotz, each of whom is presently a Director. The seven nominees are listed below
with brief biographies.
We
do not know of any reason why any nominee would be unable to serve as a Director. If any nominee is unable to serve, the shares represented by all valid proxies will be voted for the election of
such other person as the Board may nominate.
Voting Standard and Majority Vote Policy
Our Certificate of Incorporation and By-Laws provide for a plurality voting standard for the election of our Directors. Under a plurality voting
standard the nominee for each Director position with the most votes is elected.
Under
the Board's Corporate Governance Guidelines any nominee for Director in an uncontested election, such as this one where the number of nominees does not exceed the number of Directors to be
elected, who receives a greater number of votes withheld from his or her election than votes for such election shall promptly tender his or her resignation following certification of the shareholder
vote. The Corporate Governance Committee will promptly consider the tendered resignation and will recommend to the Board whether to accept the tendered resignation or to take some other action, such
as rejecting the tendered resignation and addressing the apparent underlying causes of the withheld votes. In making this recommendation the Committee will consider all factors deemed relevant by its
members.
The
Board will act on the Committee's recommendation no later than at its first regularly scheduled meeting following certification of the shareholder vote but in any case no later than
120 days following the certification of the shareholder vote. In considering the Committee's recommendation, the Board will consider the factors considered by the Committee and such additional
information and factors the Board believes to be relevant. We will promptly publicly disclose the Board's decision and process in a periodic or current report filed with the SEC. Any Director who
tenders his or her resignation under this process will not participate in the Committee recommendation or Board consideration regarding whether or not to accept the tendered resignation. However, such
Director shall remain active and engaged in all other committee and Board activities, deliberations and decisions during this Committee and Board process.
17
Table of Contents
Nominees for Election to the Board for a
Term Expiring at the 2016 Annual Meeting
Stephen P. Holmes, 58, has served as our Chairman, Chief Executive Officer and a Director since July 2006. Mr. Holmes was Vice Chairman and
director of Cendant Corporation and Chairman and Chief Executive Officer of Cendant's Travel Content Division from December 1997 to July 2006. Mr. Holmes was Vice Chairman of HFS Incorporated
from September 1996 to December 1997, a director of HFS from June 1994 to December 1997 and Executive Vice President, Treasurer and Chief Financial Officer of HFS from July 1990 to September 1996.
Mr. Holmes'
exceptional day-to-day leadership as our CEO provides him with detailed strategic perspective and knowledge of our operations and industry that are critical to the Board's
effectiveness. He possesses extensive public company management experience and is widely recognized as a visionary leader in the global hospitality industry. Under Mr. Holmes' leadership, we
have focused our business on, among other things, generating significant earnings and cash flow and building world-renowned hospitality brands, all of which increase shareholder value.
Mr. Holmes' specific experience, qualifications, attributes and skills described above led the Board to conclude that Mr. Holmes should serve as our Director.
Myra J. Biblowit, 66, has served as a Director since July 2006. Since April 2001, Ms. Biblowit has served as President of The Breast Cancer
Research Foundation. From July 1997 to March 2001, she served as Vice Dean for External Affairs for the New York University School of Medicine and Senior Vice President of the Mount Sinai-NYU Health
System. From June 1991 to June 1997, Ms. Biblowit was Senior Vice President and Executive Director of the Capital Campaign for the American Museum of Natural History. Ms. Biblowit served
as a director of Cendant from April 2000 to August 2006.
As
a director of Cendant and a Director of Wyndham Worldwide, Ms. Biblowit has gained a broad understanding of Wyndham Worldwide's business, operations and culture. Ms. Biblowit's
exceptional leadership experience with iconic research, educational and cultural institutions provides a unique perspective to the Board. As President of The Breast Cancer Research Foundation, a
dominant funder of research around the world, Ms. Biblowit brings to the Board a global perspective, marketing skills and a commitment to supporting our communities that add significant value
to the Board's contribution to our success. Ms. Biblowit's specific experience, qualifications, attributes and skills described above led the Board to conclude that Ms. Biblowit should
serve as our Director.
18
Table of Contents
James E. Buckman, 70, has served as a Director since July 2006 and Lead Director since March 2010. From May 2007 to January 2012, Mr. Buckman
served as Vice Chairman of York Capital Management, a hedge fund management company headquartered in New York City. From May 1, 2010 to January 2012, Mr. Buckman also served as General
Counsel of York Capital Management and from January 2007 to May 2007 he served as a Senior Consultant to York Capital Management. Mr. Buckman was General Counsel and a director of Cendant from
December 1997 to August 2006, a Vice Chairman of Cendant from November 1998 to August 2006 and a Senior Executive Vice President of Cendant from December 1997 to November 1998. Mr. Buckman was
Senior Executive Vice President, General Counsel and Assistant Secretary of HFS Incorporated from May 1997 to December 1997, a director of HFS from June 1994 to December 1997 and Executive Vice
President, General Counsel and Assistant Secretary of HFS from February 1992 to May 1997.
Mr. Buckman
brings to the Board exceptional leadership, experience and perspective necessary to be our Lead Director. His service as a director, Vice Chairman and General Counsel of Cendant and
a Director of Wyndham Worldwide affords Mr. Buckman strong experience with Wyndham Worldwide's business and operations. Mr. Buckman's experience with leading hedge fund manager York
Capital Management contributes valuable cross-industry experience and depth of knowledge. Mr. Buckman's specific experience, qualifications, attributes and skills described above led the Board
to conclude that Mr. Buckman should serve as our Director.
George Herrera, 58, has served as a Director since July 2006. Since December 2003, Mr. Herrera has served as President and Chief Executive
Officer of Herrera-Cristina Group, Ltd., a
Hispanic-owned, multidisciplinary management firm. From August 1998 to January 2004, Mr. Herrera served as President and Chief Executive Officer of the U.S. Hispanic Chamber of Commerce.
Mr. Herrera served as President of David J. Burgos & Associates, Inc. from December 1979 to July 1998. Mr. Herrera served as a director of Cendant from January 2004 to
August 2006.
Mr. Herrera
provides the Board with exceptional leadership and management knowledge. As a Cendant director and a Director and Chair of the Corporate Governance Committee of Wyndham Worldwide,
Mr. Herrera has gained a broad understanding of the role of the Board in our operations. Mr. Herrera's service as chief executive officer of multidisciplinary management firm
Herrera-Cristina Group, Ltd. contributes extensive and varied management, finance and corporate governance experience. His service as President and CEO of the U.S. Hispanic Chamber of Commerce
brings valuable government relations expertise to the Board. Mr. Herrera's specific experience, qualifications, attributes and skills described above led the Board to conclude that
Mr. Herrera should serve as our Director.
19
Table of Contents
The Right Honourable Brian Mulroney, 76, has served as a Director since July 2006. Mr. Mulroney is a Senior Partner in the international law firm
Norton Rose Fulbright. He served as Prime Minister of Canada from 1984 to 1993. Mr. Mulroney has served as a director of Blackstone Group L.P. since June 2007 and Quebecor
Media Inc. since January 2001. Mr. Mulroney has served as Chairman of the Board of Quebecor Media Inc. since June 2014. Mr. Mulroney served as a director of Cendant
Corporation from December 1997 to August 2006, Hicks Acquisition Co. I, Inc. from September 2007 to September 2009, Archer Daniels Midland Company Inc. from December 1993 to
December 2009 and Barrick Gold Corporation from November 1993 to May 2014.
Mr. Mulroney
brings exceptional leadership, experience and expertise to the Board. His service as a Director of Wyndham Worldwide provides the Board with knowledge of our business and strategy
as well as a historical perspective on our growth and operations. Mr. Mulroney's service as the Prime Minister of Canada brings to the Board valuable leadership and international business and
government relations expertise. He is a Senior Partner of international law firm Norton Rose Fulbright, contributing valuable legal experience to the Board. As a director for other public companies,
Mr. Mulroney offers valuable perspectives on board operations as well. Mr. Mulroney's
specific experience, qualifications, attributes and skills described above led the Board to conclude that Mr. Mulroney should serve as our Director.
Pauline D.E. Richards, 66, has served as a Director since July 2006. Since July 2008, Ms. Richards has served as Chief Operating Officer of
Armour Group Holdings Limited (formerly Brevan Howard P&C Partners Limited), an investment management company. From November 2003 to July 2008, Ms. Richards served as Director of Development at
the Saltus Grammar School, the largest private school in Bermuda. From January 2001 to March 2003, Ms. Richards served as Chief Financial Officer of Lombard Odier Darier Hentsch (Bermuda)
Limited in Bermuda, a trust company business. From January 1999 to December 2000, she was Treasurer of Gulfstream Financial Limited, a stock brokerage company. From January 1999 to June 1999,
Ms. Richards served as a consultant to Aon Group of Companies, Bermuda, an insurance brokerage company, after serving in senior positions from 1988 through 1998 including Controller, Senior
Vice President and Group Financial Controller and Chief Financial Officer. Ms. Richards has served as a director of Apollo Global Management, LLC since March 2011. Ms. Richards
served as a director of Cendant from March 2003 to August 2006.
Ms. Richards'
extensive financial background and exceptional leadership experience provide the Board with financial accounting and management expertise and perspectives. Her service as a
Cendant director and as a Director and member of the Audit Committee of Wyndham Worldwide brings to the Board valuable experience on financial reporting matters that are critical to the Board's
oversight role. Ms. Richards' service as a chief financial officer and treasurer of leading finance companies allows her to offer important insights into the role of finance in our business and
strategy. As a director for other public companies, Ms. Richards offers valuable perspectives on board operations as well. Ms. Richards' specific experience, qualifications, attributes
and skills described above led the Board to conclude that Ms. Richards should serve as our Director.
20
Table of Contents
Michael H. Wargotz, 56, has served as a Director since July 2006. Since July 2011, Mr. Wargotz has served as the Chairman of Axcess Ventures, an
affiliate of Axcess Worldwide, a partnership development company. From August 2010 to June 2011, Mr. Wargotz served as the Chief Financial Officer of The Milestone Aviation Group, LLC, a
global aviation leasing company. From August 2009 to July 2010, Mr. Wargotz served as the Co-Chairman of Axcess Luxury and Lifestyle. From December 2006 to August 2009, Mr. Wargotz
served as the Chief Financial Advisor of NetJets, Inc., a leading provider of private aviation services, and from June 2004 to November 2006, he served as a Vice President of NetJets.
Mr. Wargotz is a founding partner of Axcess Solutions, LLC, a strategic alliance, brand development and partnership marketing consulting firm, which originated in 2001. From January 1998
to December 1999, Mr. Wargotz served in various leadership positions with Cendant, including President and Chief Executive Officer of its Lifestyle Division, Executive Vice President and Chief
Financial Officer of its Alliance Marketing Segment and Senior Vice President, Business Development. Mr. Wargotz was a Senior Vice President with HFS Incorporated from July 1994 to December
1997. Mr. Wargotz has served as a director of Resources Connection, Inc. since May 2009 and CST Brands, Inc. since May 2013.
Mr. Wargotz's
senior management experience with Axcess Worldwide, The Milestone Aviation Group and NetJets brings to the Board financial expertise and branding knowledge. As Chair of the Audit
Committee of Wyndham Worldwide, he contributes financial reporting and compliance expertise and perspective. Mr. Wargotz's experience as President and CEO of Cendant's Lifestyle Division, Chief
Financial Officer of Cendant's Alliance Marketing Segment and Senior Vice President of Cendant's business development function provides the Board with exceptional leadership and branding and
development expertise in areas that are critical to our business. As a director for other public companies, Mr. Wargotz offers valuable perspectives on board operations as well.
Mr. Wargotz's specific experience, qualifications, attributes and skills described above led the Board to conclude that Mr. Wargotz should serve as our Director.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS
A VOTE FOR THE ELECTION OF EACH OF THE DIRECTOR NOMINEES
21
Table of Contents
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
Overview
Total Compensation Strategy. We employ a Total Compensation Strategy designed to achieve the following
objectives:
-
- Attract and retain superior senior management talent.
-
- Provide our executives with market competitive compensation consistent with comparable hospitality, service, franchise and brand
portfolio companies.
-
- Support a high-performance environment by linking compensation with performance.
-
- Support a long-term focus for our executives that aligns their interests with the interests of our shareholders.
Strong Performance. In 2014 our management team produced strong financial and operational results:
-
- Total revenues of $5.3 billion, representing a 5% increase over 2013.
-
- Adjusted net income of $573 million, representing an 11% increase over 2013 adjusted net income (our 2014 net income was
$529 million representing a 22% increase over 2013 net income).*
-
- Diluted adjusted earnings per share of $4.53, an 18% increase over 2013 (our 2014 diluted earnings per share of $4.18 represented a
30% increase over 2013 diluted earnings per share).*
-
- In 2014, our share price appreciated 16%. This, together with our 2014 dividend payments, resulted in a 19% total return to
shareholders during 2014. Our one-year total shareholder return (19%) and our three-year total shareholder return (140%) exceeded the one-year (14%) and three-year (75%) total returns on the
S&P 500 index.
2014 Compensation Actions. As discussed in more detail below, the compensation decisions and other actions applicable to our named executive officers for 2014 were
as follows:
-
- In February 2014, the Compensation Committee (Committee) approved base salary merit increases for our named executive officers. For
2014, we paid our named executive officers the base salaries listed in the Summary Compensation Table below.
-
- In February 2014, the Committee granted stock-settled stock appreciation rights (SSARs), time-vested restricted stock units (RSUs) and
performance-vested restricted stock units (PVRSUs) to Mr. Holmes, our CEO, and RSUs and PVRSUs to our other named executive officers in the amounts listed in the Grants of Plan-Based Awards
Table below.
* For a full reconciliation of adjusted net income to GAAP net income and diluted adjusted earnings per share to GAAP diluted earnings per share, please see Appendix A
attached to this proxy statement.
22
Table of Contents
-
- In February 2014, the Committee approved the factors to be used to determine any potential 2014 annual incentive compensation for our
named executive officers. These factors are described below under Annual Incentive Compensation.
-
- In February 2014, the Committee approved 2014 executive perquisites. Named executive officer compensation for 2014 attributable to
perquisites is described in the All Other Compensation Table below.
-
- In March 2014, the employment agreement of Mr. Ballotti, former CEO, Wyndham Exchange and Rentals, was amended to reflect his
new title, CEO, Wyndham Hotel Group, and to extend the term of his employment until March 2017. The employment of Mr. Danziger, former CEO, Wyndham Hotel Group, ceased in March 2014.
Mr. Danziger's severance was consistent with the terms of his employment agreement. In 2014, the employment agreement of Mr. Hanning, CEO, Wyndham Vacation Ownership, was amended to
increase his target annual incentive opportunity and extend the term of his employment until August 2017. The terms of the employment agreements with our named executive officers are described below
under Agreements with Named Executive Officers.
-
- In May 2014, more than 86% of the shares voted on our Say-on-Pay Vote at our 2014 Annual Meeting of Shareholders were cast in support
of the compensation of our named executive officers as described in our 2014 proxy statement.
-
- In February 2015, the Committee approved and we paid our named executive officers 2014 annual incentive compensation in the amounts
listed in the Summary Compensation Table.
-
- In February 2015, our CEO determined to waive his right to future tax gross-ups on perquisites.
Total Compensation Strategy
We employ a Total Compensation Strategy designed to achieve the following objectives:
-
- Attract and retain superior senior management talent. We believe that attracting and retaining superior senior managers are integral
to our ongoing success. Our named executive officers possess extensive experience in our businesses and the hospitality industry segments in which we compete and demonstrate the exceptional leadership
skills and commitment to excellence that we believe are critical for our company. Accordingly, our Total Compensation Strategy is designed in part to promote a long-term commitment from our named
executive officers.
-
- Provide our executives with compensation that is consistent and competitive with compensation provided by comparable hospitality,
service, franchise and brand portfolio companies. We provide our named executive officers with total target compensation, consisting of base salary, cash-based annual incentive compensation and
equity-based long-term incentive compensation, that is generally consistent with the market median but may approach the 75th percentile of our peer group. We also provide our named executive
officers with perquisites which we believe are consistent with our peers and health, welfare and retirements benefits which are reviewed on a company-wide basis and are deemed to be market
competitive.
-
- Support a high-performance environment by linking compensation with performance. Our key goals are to increase our earnings, cash flow
and shareholder value. Consistent with these goals, we believe a significant portion of our executive compensation should be contingent on actual results. Accordingly, compensation levels are strongly
influenced by corporate, business unit and individual performance.
23
Table of Contents
-
- Support a long-term focus for our executives that aligns their interests with the interests of our shareholders. Long-term incentive
compensation is intended to align the interests of our named executive officers with those of our shareholders as well as support our goal of retaining our key personnel.
Compensation Committee Matters
Wyndham Worldwide Compensation Committee. The Committee is responsible for providing oversight on executive compensation policies and programs consistent with
corporate objectives and shareholder interests. The Committee operates under a written charter adopted by the Board. The Committee reviews the charter on an annual basis. The Committee's membership is
determined by the Board and is composed entirely of independent Directors. The Committee Chair reports at our Board meetings on Committee actions and recommendations.
Executive Compensation Consultant. For 2014, Aon Hewitt was retained by the Committee as a third-party advisor to provide independent advice, research and
evaluation related to executive compensation and was paid approximately $159,700 for its services during 2014. In this capacity, the Committee utilizes reports and analyses prepared by Aon Hewitt. Aon
Hewitt was retained to provide the Committee with competitive market pay analyses including compensation measurement services, peer group proxy data studies and market trends.
Wyndham
Worldwide has historically engaged affiliates of Aon Hewitt for insurance brokerage and actuarial services. In this capacity, management engaged Aon Risk Services, Inc., without Board
involvement, to provide insurance brokerage and actuarial services to Wyndham Worldwide during 2014. We paid approximately $1,193,000 to Aon Risk Services, Inc. for these services during 2014,
which amount was offset by commissions paid to Aon Risk Services, Inc. by insurance carriers for placing Wyndham Worldwide policies.
Aon
Hewitt has in place policies and procedures designed to prevent conflicts of interest and safeguard the independence of its executive compensation consulting advice. These policies and procedures
include segregation of executive compensation services in a separate business unit with performance results of that unit measured solely based on the executive compensation services, clearly defined
engagements with compensation committees separate from any other services provided, management of multiservice client relationships by separate account executives, no incentives provided for
cross-selling of services and no more favorable terms offered to companies due to the retention of Aon Risk Services, Inc. for additional services. The Committee reviewed the independence of
Aon Hewitt in accordance with NYSE requirements and considered this relationship. Based on its review, the Committee concluded that no conflict of interest was raised by the services provided by Aon
Risk Services, Inc. and determined that the executive compensation advice received from Aon Hewitt is objective and independent.
Management's Role. Our management plays a significant role in our executive compensation process including evaluating executive performance and recommending base
salary merit increases, performance factors for annual incentive compensation and long-term incentive compensation for the named executive officers other than our CEO. Our CEO works with the Committee
to establish the agenda for Committee meetings and management prepares and distributes meeting information to Committee members. Our CEO also participates in Committee meetings at the Committee's
request to provide background information regarding our strategic objectives, his evaluation of the performance of the senior executives and compensation recommendations for senior executives other
than himself. Our CEO is not involved in setting his own compensation, which is the exclusive responsibility of the Committee.
24
Table of Contents
Compensation Committee Discretion. For 2014, while the Committee reviewed management's recommendations, the Committee retained discretion over all elements and
levels of the named executive officers' compensation. For 2014, the Committee generally based its decisions on a combination of management's recommendations other than for our CEO and the external
market data provided by our management and compensation consultant.
Committee Consideration of Say-on-Pay Vote. We currently hold an advisory vote on the compensation of our named executive officers (Say-on-Pay Vote) on an annual
basis in accordance with the preference expressed by our shareholders at our 2011 annual meeting regarding the frequency of the Say-on-Pay Vote. At our 2014 Annual Meeting, more than 86% of the shares
voted on our Say-on-Pay Vote were cast in support of the compensation of our named executive officers as described in the 2014 proxy statement. The Committee reviewed the outcome of the 2014 advisory
vote and believes that the level of support affirms our current executive compensation structure and program. Accordingly, no changes have been made to our executive compensation program as a result
of last year's Say-on-Pay Vote. In the future the Committee will continue to review our executive compensation program taking into consideration the outcome of our Say-on-Pay Votes and other relevant
factors in making compensation decisions for our named executive officers.
Annual Evaluation and Compensation Risk Assessment. An important aspect of the Committee's work relates to the annual determination of compensation for our named
executive officers. The Committee meets each year to review the performance of the named executive officers and review, consider and approve any potential increases in base salaries, annual incentive
compensation, grants of long-term incentive compensation and perquisites.
As
part of its annual review, the Committee reviews the potential for any material risks arising from or relating to our compensation programs. Based on this review, the Committee believes that our
compensation programs do not encourage excessive risk-taking by our executives or employees and are not reasonably likely to have a material adverse effect on Wyndham Worldwide. In reaching its
conclusion, the Committee considered the following aspects of our compensation programs believed to encourage the management of our business in a prudent
manner:
-
- The Committee reviews and compares executive compensation against our peer group to confirm that compensation is within an acceptable
range relative to the external market.
-
- Our performance-based compensation is in large part keyed to our earnings, aligning interests of shareholders and management, and
designed to improve our core operating results as opposed to using leverage or other high risk strategies.
-
- Our annual incentive compensation opportunities are capped at a specified maximum as a countermeasure to excessive risk-taking.
-
- Our commission-based sales programs are monitored by management for compliance with law and internal policies.
Employment Agreements
We entered into employment agreements with each of our named executive officers the terms of which form the basis of our named executive officers'
compensation elements and levels. The compensation elements provided under the agreements
are reviewed annually by management, our compensation consultant and the Committee against the peer group described below under Compensation Review and Benchmarking.
25
Table of Contents
In
March 2014, Mr. Ballotti, who then served as CEO of Wyndham Exchange and Rentals, was appointed to succeed Mr. Danziger as the CEO of Wyndham Hotel Group. The employment agreement of
Mr. Ballotti was amended in March 2014 to reflect his new title and to extend the term of his employment until March 2017. Mr. Danziger's employment with Wyndham Worldwide ceased in
March 2014. His severance was consistent with the terms of his employment agreement. In 2014, the employment agreement of Mr. Hanning was amended to increase his target annual incentive
opportunity and extend the term of his employment for a period of three years until August 2017.
The
terms of the employment agreements are described below under Agreements with Named Executive Officers.
Compensation Review and Benchmarking
Management and the Committee believe that information regarding compensation practices at other companies is useful in evaluating the compensation of
our named executive officers. Management and the Committee recognize that our compensation practices must be competitive in the market to attract and retain superior senior managers. In addition, this
market information is a factor that management and the Committee consider in assessing the reasonableness of the compensation of our executives.
The
Committee utilized the peer group of companies listed below, as previously recommended by our compensation consultant and approved by the Committee, based on one or more of the following criteria:
companies or divisions within companies in generally the same industry or business as Wyndham Worldwide; companies that were similar in size to Wyndham Worldwide in terms of revenues and market value;
companies used by analysts to compare Wyndham Worldwide's financial performance; organizations with a global presence; organizations with which we compete for executive talent; and organizations in
similar markets or with a similar business model such as non-hospitality companies that have franchise and brand portfolio operations.
Our
peer group for 2014 executive compensation benchmarking consisted of the following companies:
|
|
|
|
|
American Express Company |
|
Intercontinental Hotels |
|
Carnival Corporation & Plc |
|
Marriott International, Inc. |
|
Choice Hotels International, Inc. |
|
MGM Mirage |
|
Colgate Palmolive Company |
|
Royal Caribbean Cruises Ltd. |
|
Darden Restaurants, Inc. |
|
Starbucks Corporation |
|
Expedia Inc. |
|
Starwood Hotels & Resorts Worldwide, Inc. |
|
Ryman Hospitality Properties Inc. |
|
The Walt Disney Company |
|
Host Hotels & Resorts, Inc. |
|
Wynn Resorts, Limited |
|
Hyatt Hotels Corp. |
|
Yum Brands, Inc. |
In
February 2014, our compensation consultant conducted a competitive review of the compensation elements and levels of our named executive officers using this peer group. As part of this review, our
compensation consultant prepared and management provided the Committee with total compensation summaries and tally sheets for the named executive officers together with related peer group data. The
objectives of the compensation review were to compare for consistency the compensation of our executives to that of similarly-situated executives and ensure that our compensation practices and
elements are consistent with our Total Compensation Strategy.
Our
compensation consultant's review of peer group compensation included the following compensation elements using the most recently filed proxy statements for each peer company: base salary, annual
incentive compensation, time-based long-term incentive compensation, total cash
26
Table of Contents
compensation
and total compensation. Compensation levels were obtained for the peer group median, average, 25th and 75th percentiles for each compensation
element at target level performance (excluding for this purpose premium levels of performance under our annual and long-term incentive compensation programs) to provide an understanding of our
compensation practices against competitive pay practices.
Using
this competitive review and consistent with our Total Compensation Strategy, we broadly target total compensation (consisting of base salary, annual incentive compensation and
long-term incentive compensation) to be consistent with the market median but may approach the 75th percentile of the peer group. However, the Committee does not view this
benchmark as a rigid standard. While the Committee conducts this review, it views benchmarking simply as one factor in making compensation decisions for our named executive officers as it does not
account for factors such as past performance, future potential, recruiting and retention needs, succession planning, experience or scope of responsibility. As a result, our named executive officers'
target compensation opportunities as well as actual total compensation may be above or below targeted levels based on these factors. The Committee's review of peer group data in 2014 confirmed that
actual total compensation paid to our named executive officers was at or below the 75th percentile based on strong operating performance and consistent with our Total Compensation
Strategy benchmark.
On
an annual basis our compensation consultant also reviews the general framework and elements of our executive compensation program. Based on this review, our consultant advised management and the
Committee that the elements of compensation that we provide our named executive officers are consistent with the compensation elements provided by our peer group companies. As part of this review, our
compensation consultant prepared tally sheets for each named executive officer. In addition to reviewing market data, the Committee reviews these tally sheets which identify the value of each
compensation element, including base salary, annual incentive compensation, long-term incentive compensation, benefits and the value of severance and change-in-control payments under various
termination and change-in-control scenarios.
Reviewing
the tally sheets helps the Committee to balance the various compensation elements so that no single element is too heavily weighted and there is an appropriate mix between fixed and variable
compensation and short-term and long-term compensation to ensure alignment with our Total Compensation Strategy. As each compensation element has different objectives as discussed below, Committee
review and determinations with respect to one element generally do not influence decisions regarding the other elements to the extent total compensation is consistent with our Total Compensation
Strategy. Further given the significant scope and responsibilities of our CEO, which are greater than those of our other named executive officers, the Committee believes any differences between the
individual compensation elements and the total compensation of our CEO and the other named executive officers are appropriate.
Base Salary
Consistent with our Total Compensation Strategy, we provide base salaries designed to attract and retain our named executive officers and provide
them with a base level of income. For 2014 base salary merit increases, management provided the Committee with a market assessment of annual salary increases utilizing external market data from World
at Work, Aon Hewitt, Towers Watson and Mercer annual salary increase surveys. We based the 2014 merit increases on this market analysis and a review of the 2013 individual performance of the named
executive officers. To review the individual performance of our named executive officers, senior management (or in the case of our CEO, the Committee) reviews the executives' individual contributions
and personal leadership together with their performance on corporate or business
unit strategic objectives including business development, business drivers and cost reduction initiatives.
27
Table of Contents
In February 2014, the Committee approved 2014 base salary merit increases for each of our named executive officers that were effective February 23, 2014 based on their
performance evaluations and maintaining market competitiveness. For 2014, we paid our named executive officers the base salaries listed in the Summary Compensation Table below.
Annual Incentive Compensation
Consistent with our Total Compensation Strategy, we provide cash-based annual incentive compensation designed to create incentives for the named
executive officers to drive our short-term financial and operating performance and thus create value for our shareholders.
In
February 2014, management recommended and the Committee approved a combination of factors to determine potential 2014 annual incentive compensation for our named executive officers including actual
total company (corporate) and/or business unit Earnings Before Interest and Taxes (EBIT), as adjusted, a standard measure of our profitability, as measured against target EBIT established at the
beginning of the plan year, and a target award opportunity generally expressed as a percentage of the executive's base salary. An executive's annual incentive compensation may be higher or lower than
target annual incentive compensation depending on corporate and/or business unit performance. The maximum annual incentive award opportunity for our named executive officers under the annual incentive
compensation program is 150% of the target award opportunity.
The
EBIT targets set for the corporation and its business units are recommended by management subject to approval by the Committee and are based on operating budgets that reflect our strategic plan.
EBIT may be adjusted to reflect potential unusual or extraordinary events and items such as restructuring costs and impairments specified at the outset of the performance period. Consistent with our
Total Compensation Strategy, we believe that the EBIT targets set appropriate goals for our executives to achieve earnings growth and create shareholder value. We further believe that using our annual
incentive compensation program to provide incentives to our named executive officers to exceed the EBIT targets and accomplish our strategic objectives is an important tool to implement our Total
Compensation Strategy.
Following
the completion of each year, the Committee reviews the corporate and business unit operating results achieved against the pre-established EBIT targets approved by the Committee. In addition,
as a threshold matter, to ensure that the performance of the individual executives is at the high level expected, senior management reviews with the Committee (or in the case of our CEO, the Committee
itself reviews) each executive's individual contributions and personal leadership together with their performance on corporate or business unit strategic objectives, business drivers, business
development and other initiatives as applicable. If based on this review, the executive's performance did not meet expectations, the Committee may use its discretion to deny or adjust downward the
executive's annual incentive compensation award.
Under
our 2014 annual incentive program, the pre-established performance tiers ranged from 97% up to 106.5% of the EBIT target for the corporation and each business unit, with corresponding payout
levels ranging, respectively, from 25% of the target award opportunity up to a maximum of 150% of the target award opportunity. Payout level is interpolated where performance is achieved between the
specified performance tiers subject to the 150% maximum payout. Performance achievement below 97% of the adjusted EBIT target for the corporation or a business unit results in no payout with respect
to any portion of the award based on such corporate or specific business unit's performance.
For
2014, the corporate EBIT target was $980.4 million and actual adjusted corporate EBIT was $1.03 billion or 105.2% of the target. Annual incentive compensation paid to
Mr. Holmes, Mr. Conforti and Mr. Anderson was weighted 100% on the corporate results. The Committee reviewed the corporate results together with Mr. Holmes' individual
performance and determined that he receive 2014 annual incentive compensation at 142% of target. Management reviewed the corporate results
28
Table of Contents
together
with Mr. Conforti's individual performance and recommended to the Committee that he receive 2014 annual incentive compensation at 142% of target. Management reviewed the corporate
results together with Mr. Anderson's individual performance and recommended to the Committee that he receive 2014 annual incentive compensation at 142% of target.
For
2014, the Wyndham Hotel Group (WHG) EBIT target was $266.6 million and actual WHG adjusted EBIT was $284.3 million or 106.6% of the target. The Wyndham Exchange & Rentals
(WER) EBIT target was $278.7 million and actual WER adjusted EBIT was $283.4 million or 101.7% of the target. Annual incentive compensation paid to Mr. Ballotti was weighted 25%
on the corporate results, 56.25% on WHG results and 18.75% on WER results. Management reviewed the WHG, WER and corporate results together with Mr. Ballotti's individual performance and
recommended to the Committee that he receive 2014 annual incentive compensation at 140% of target.
For
2014, the Wyndham Vacation Ownership (WVO) EBIT target was $590.3 million and actual WVO adjusted EBIT was $624.4 million or 105.8% of the target. Annual incentive compensation paid
to Mr. Hanning was weighted 25% on the corporate results and 75% on the WVO results. Management reviewed the WVO and corporate results together with Mr. Hanning's individual performance
and recommended to the Committee that he receive 2014 annual incentive compensation at 148% of target.
The
Non-Equity Incentive Plan column of the Summary Compensation Table below lists the annual incentive compensation we paid our named executive officers for 2014.
Long-Term Incentive Compensation
Consistent with our Total Compensation Strategy, we provide our named executive officers with long-term incentive compensation to create incentives
to achieve share price appreciation and encourage retention. Accordingly, 2014 long-term incentive compensation for our named executive officers focused on aligning their interests with those of
shareholders, achieving competitiveness with the external market, rewarding key talent contributions and retention. Long-term incentive compensation is granted under our 2006 Equity and Incentive
Plan. Our compensation consultant and the Committee periodically review our plan design to confirm its consistency with our peers with respect to items such as long-term incentive mix prevalence and
vesting provisions. Additionally, due to the large portion of our named executive officers' total target compensation that is attributable to long-term incentive compensation, our compensation
consultant and the Committee reviewed long-term incentive
amounts exclusive of our long-term incentive plan (LTIP) modifier awards against peer data and confirmed general consistency with our Total Compensation Strategy.
Management
annually recommends to the Committee an aggregate budget available for long-term incentive compensation. For 2014, the aggregate budget was allocated based on the relative number of
eligible executives in corporate services and the business units. Long-term incentive compensation is then recommended by management (other than for our CEO, which is determined by the Committee) and
granted by the Committee to the named executive officers based on individual performance review, tenure, scope of responsibility and future potential. Elements of individual performance considered by
the Committee in such review include corporate or business unit results of operations, achievement of strategic objectives and leadership characteristics.
Based
on these factors, the Committee determined our CEO's 2014 annual long-term incentive award to be in the form of 25% SSARs and 75% RSUs plus an LTIP modifier in the form of PVRSUs. For our other
named executive officers, annual long-term incentive awards were granted in the form of RSUs plus an LTIP modifier in the form of PVRSUs. As discussed below, PVRSUs are viewed as a modifier of the
annual long-term incentive awards because premium performance in excess of target must be achieved in order for any portion of the PVRSUs to be earned.
29
Table of Contents
A
SSAR represents the right to receive a number of shares of common stock equal in value to the excess of the fair market value of a share of our common stock on the date of exercise over the exercise
price of the SSAR and provides the executive incentive to drive long-term share price appreciation.
A
RSU represents the right to receive a share of our common stock on a set vesting date subject to continued employment and provides the executive incentive to drive share price appreciation while
encouraging retention.
A
PVRSU represents the right to receive a share of our common stock on a set vesting date subject to achievement of pre-established earnings per share performance goals and continued employment and
provides the executive incentive to drive earnings growth and share price appreciation while encouraging retention.
The
performance goals for our PVRSU awards are set by the Committee at levels that exceed our three-year projected target earnings per share established at the time of grant of the PVRSU award. Target
earnings per share represents a level of earnings per share consistent with our projected operating budgets. Because PVRSU awards vest only if actual earnings per share, as
adjusted, exceeds target earnings per share, the probable outcome with respect to these awards at the time of grant is that earnings per share in excess of target earnings per share will not be
achieved and no PVRSUs will be earned. The Committee believes that the PVRSU performance goals are consistent with the Committee's intention of making the vesting of these awards contingent upon
achieving exceptional growth in earnings per share that strongly benefits shareholders.
Vesting
of PVRSUs is contingent upon achievement of the levels of performance specified below and where performance is achieved between these specified performance tiers the number of vested PVRSUs is
interpolated. No shares vest unless our cumulative earnings per share performance exceeds 100% of target earnings per share at the end of the three-year performance period.
|
|
|
Performance Achievement
as % of Cumulative EPS Target
|
|
Level of Vesting
as % of Total PVRSUs
|
100% |
|
0% of PVRSUs |
102% |
|
25% of PVRSUs |
104% |
|
50% of PVRSUs |
106% |
|
75% of PVRSUs |
108% |
|
100% of PVRSUs (maximum) |
The
total cost of PVRSUs is fully funded by achievement of the earnings per share performance goals, which represent premium levels of earnings growth. The earnings per share results may be adjusted
to reflect potential unusual or extraordinary events and items such as restructuring costs and impairments specified at the outset of the performance period. Subject to achievement of performance
tiers, vesting occurs on the third anniversary of the grant date or later upon certification of results by the Committee.
Consistent
with the objectives described above, in February 2014, the Committee granted SSARs, RSUs and PVRSUs to Mr. Holmes and RSUs and PVRSUs to each of our other named executive officers in
the amounts listed in the Grants of Plan-Based Awards Table below.
In
2012, PVRSU awards were granted to our named executive officers covering a three-year performance period including years 2012, 2013 and 2014. In February 2015, these PVRSU awards vested at the
maximum level due to earnings per share growth that exceeded 108% of the three-year cumulative earnings per share target.
The
2014 Outstanding Equity Awards at Fiscal Year End Table provides additional information regarding the results of our 2012 PVRSU awards and performance through 2014 year end with respect to
outstanding PVRSU awards granted in 2013 and 2014.
30
Table of Contents
Perquisites
We provide our named executive officers with perquisites that management and the Committee believe are reasonable, competitive and consistent with
our Total Compensation Strategy. Management and the Committee believe that our perquisites help us to retain highly talented managers and allow them to operate more effectively.
In
February 2014, management provided the Committee with and the Committee reviewed a market assessment of competitive perquisite practices utilizing widely available market data publications from Aon
Hewitt and other compensation consultants. Based on this information, the Committee found our 2014 executive perquisites to be consistent with market practices.
In
February 2014, the Committee approved perquisites for the named executive officers including a leased automobile and financial planning services. For certain perquisites the executive receives a
tax gross-up payment, which means the executive receives additional compensation to reimburse them for the amount of taxes owed on the compensation imputed for the perquisite. However, in February
2015, Mr. Holmes waived his entitlement to any future tax gross-up payments on perquisites. As permitted under his employment agreement, for 2014 we provided Mr. Holmes with personal use
of company aircraft for which we imputed income without a tax gross-up. The All Other Compensation Table below lists compensation attributable to perquisites provided to the named executive officers
for 2014.
Deferred Compensation Plans
Officer Deferred Compensation Plan. Our nonqualified officer deferred compensation plan permits named executive officers to defer base salary and annual incentive
compensation. We match executive contributions to the plan up to 6% of base salary and annual incentive
compensation. The executive makes an irrevocable deferral election prior to the beginning of the calendar year. The executive may elect a single lump-sum payment of his or her account or may elect
payments in annual installments up to ten years. The participant's entire account balance is 100% vested. The contributions to our officer deferred compensation plan applicable to our named executive
officers are listed below in the Nonqualified Deferred Compensation Table.
401(k) Plan. We provide all employees, including our named executive officers, with a 401(k) plan. Our 401(k) plan permits named executive officers to defer base
salary. We provide named executive officers and other participants a company match of base salary contributed up to 6% of base salary. The company match is 100% vested.
Savings Restoration Plan. We make available to our named executive officers a savings restoration plan, which allows executives to defer compensation in excess of
the amounts permitted by the Internal Revenue Code of 1986, as amended (Code), under our 401(k) plan, but there are no matching contributions for these deferrals. None of our named executive officers
have a balance under our Savings Restoration Plan.
Severance Arrangements
The employment agreements of our named executive officers provide for payments as a percentage of base salary and annual incentive compensation as
well as accelerated vesting of specified long-term incentive grants, and in the case of PVRSUs, vesting based on performance during a specified period, if the executive's employment is terminated
without cause or for a constructive discharge. These payments and terms are discussed below under Agreements with Named Executive Officers and Potential Payments on Termination or Change-in-Control.
31
Table of Contents
The
severance terms for the named executive officers were established in connection with their employment agreements consistent with peer group market practices and data provided by our compensation
consultant. We believe these arrangements are necessary to attract and retain our executives and ensure the continuity of management. The primary focus of the severance terms is generally on the
termination of employment and thus the value of these terms arises only in the
context of imminent termination. The severance terms do not enhance an executive's current income and therefore are independent of the peer group data review.
Change-in-Control Arrangements
In the event of a change-in-control of Wyndham Worldwide, the named executive officers receive payments only if their employment is terminated
without cause or for constructive discharge following the change-in-control. Our named executive officers are not entitled to any excise tax gross-up in connection with their change-in-control
arrangements. Long-term incentive compensation grants made to all eligible employees, including the named executive officers, fully vest on a change-in-control. The payments and terms of our named
executive officers' change-in-control arrangements are discussed below under Agreements with Named Executive Officers and Potential Payments on Termination or Change-in-Control.
The
change-in-control terms for the named executive officers were established in connection with their employment agreements consistent with peer group market practices and data provided by our
compensation consultant. Since a potential change-in-control transaction generally results in increased shareholder value, the Committee believes that it is important to provide incentives to motivate
the named executive officers to pursue and complete a potential transaction should it arise and ensure retention. Like the severance arrangements, the value of the change-in-control arrangements
arises only in the context of an imminent change-in-control. The terms do not enhance the named executive officers' current income and therefore are independent of the annual peer group data review.
Executive Officer Stock Ownership Guidelines
Our Executive Officer Stock Ownership Guidelines are intended to align further the financial interests of executive officers with the interests of
shareholders. The guidelines require our named executive officers to own our common stock with a market value at least equal to the following multiples: CEO: 4 times base salary and
Business Unit CEO and our CFO: 2 times base salary. Stock ownership meeting the guidelines includes common stock and RSUs but excludes PVRSUs. As of December 31, 2014, all of the named
executive officers exceeded these stock ownership requirements.
Policy Against Hedging of Company Stock
Our insider trading policy contains restrictions on transactions in our securities by our Directors, executive officers and other employees who have
regular access to material nonpublic information in the normal course of their duties. Under this policy, these parties are prohibited from entering into derivative transactions, including put or call
options, and from engaging in short sales or equity swaps with respect to our securities. In addition, all transactions in our securities by these persons must be pre-cleared by our securities
compliance personnel.
Compensation Committee Report
The Compensation Committee reviewed and discussed with management the Compensation Discussion and Analysis contained in this proxy statement. We
recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement for filing with the SEC.
COMPENSATION
COMMITTEE
The
Right Honourable Brian Mulroney (Chair)
Myra J. Biblowit
Pauline D.E. Richards
32
Table of Contents
2014 Summary Compensation Table
The following table describes compensation paid to our named executive officers for 2014, 2013 and 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name & Principal Position |
|
|
|
Year |
|
|
|
Salary
($) |
|
|
|
Bonus
($) |
|
|
|
Stock
Awards
($)(a) |
|
|
|
Option
Awards
($)(a) |
|
|
|
Non-Equity
Incentive Plan
Compensation
($)(b) |
|
|
|
All Other
Compensation
($)(c) |
|
|
|
Total
($) |
|
|
|
|
|
Stephen P. Holmes |
|
|
|
2014 |
|
|
|
1,500,008 |
|
|
|
-- |
|
|
|
5,437,500 |
|
|
|
1,812,500 |
|
|
|
4,260,022 |
|
|
|
1,101,861 |
|
|
|
14,111,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chairman and Chief Executive Officer |
|
|
|
2013 |
|
|
|
1,451,932 |
|
|
|
-- |
|
|
|
5,250,000 |
|
|
|
1,750,000 |
|
|
|
4,268,679 |
|
|
|
818,321 |
|
|
|
13,538,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
|
1,235,305 |
|
|
|
-- |
|
|
|
4,500,000 |
|
|
|
1,500,000 |
|
|
|
3,458,855 |
|
|
|
1,471,495 |
(d) |
|
|
12,165,655 |
(d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geoffrey A. Ballotti |
|
|
|
2014 |
|
|
|
684,230 |
|
|
|
-- |
|
|
|
2,600,000 |
|
|
|
-- |
|
|
|
956,636 |
|
|
|
409,529 |
|
|
|
4,650,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
President and Chief Executive Officer, |
|
|
|
2013 |
|
|
|
654,237 |
|
|
|
-- |
|
|
|
2,500,000 |
|
|
|
-- |
|
|
|
922,474 |
|
|
|
246,725 |
|
|
|
4,323,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham Hotel Group |
|
|
|
2012 |
|
|
|
624,240 |
|
|
|
-- |
|
|
|
2,200,000 |
|
|
|
-- |
|
|
|
747,527 |
|
|
|
505,383 |
|
|
|
4,077,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franz S. Hanning |
|
|
|
2014 |
|
|
|
739,242 |
|
|
|
-- |
|
|
|
2,700,000 |
|
|
|
-- |
|
|
|
1,332,000 |
|
|
|
359,156 |
|
|
|
5,130,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
President and Chief Executive Officer, |
|
|
|
2013 |
|
|
|
710,027 |
|
|
|
-- |
|
|
|
2,500,000 |
|
|
|
-- |
|
|
|
1,194,000 |
|
|
|
202,402 |
|
|
|
4,606,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham Vacation Ownership |
|
|
|
2012 |
|
|
|
684,230 |
|
|
|
-- |
|
|
|
2,500,000 |
|
|
|
-- |
|
|
|
1,032,500 |
|
|
|
458,385 |
|
|
|
4,675,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomas G. Conforti |
|
|
|
2014 |
|
|
|
652,620 |
|
|
|
-- |
|
|
|
2,600,000 |
|
|
|
-- |
|
|
|
926,720 |
|
|
|
389,424 |
|
|
|
4,568,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive Vice President and |
|
|
|
2013 |
|
|
|
625,202 |
|
|
|
-- |
|
|
|
2,400,000 |
|
|
|
-- |
|
|
|
919,047 |
|
|
|
341,124 |
|
|
|
4,285,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chief Financial Officer |
|
|
|
2012 |
|
|
|
599,236 |
|
|
|
-- |
|
|
|
2,200,000 |
|
|
|
-- |
|
|
|
838,931 |
|
|
|
222,706 |
|
|
|
3,860,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomas F. Anderson |
|
|
|
2014 |
|
|
|
516,164 |
|
|
|
-- |
|
|
|
1,600,000 |
|
|
|
-- |
|
|
|
732,953 |
|
|
|
252,056 |
|
|
|
3,101,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive Vice President and |
|
|
|
2013 |
|
|
|
496,162 |
|
|
|
-- |
|
|
|
1,400,000 |
|
|
|
-- |
|
|
|
729,358 |
|
|
|
194,027 |
|
|
|
2,819,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chief Real Estate Development Officer |
|
|
|
2012 |
|
|
|
476,160 |
|
|
|
-- |
|
|
|
1,200,000 |
|
|
|
-- |
|
|
|
666,624 |
|
|
|
183,637 |
|
|
|
2,526,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eric A. Danziger |
|
|
|
2014 |
|
|
|
154,811 |
|
|
|
-- |
|
|
|
0 |
|
|
|
-- |
|
|
|
0 |
|
|
|
5,088,625 |
|
|
|
5,243,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Former President and Chief Executive Officer, |
|
|
|
2013 |
|
|
|
572,127 |
|
|
|
-- |
|
|
|
2,000,000 |
|
|
|
-- |
|
|
|
677,970 |
|
|
|
249,029 |
|
|
|
3,499,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham Hotel Group |
|
|
|
2012 |
|
|
|
554,820 |
|
|
|
-- |
|
|
|
2,000,000 |
|
|
|
-- |
|
|
|
818,360 |
|
|
|
258,595 |
|
|
|
3,631,775 |
|
|
- (a)
- Represents
the aggregate grant date fair value of equity awards computed in accordance with Financial Accounting Standards Board Accounting Standards
Codification Topic 718 (ASC 718). A discussion of the assumptions used in calculating the fair value of such awards may be found in Note 19 to our 2014 audited financial statements of our
annual report on Form 10-K filed with the SEC on February 13, 2015.
- No
grant date fair value is attributable to PVRSU awards under ASC 718 due to the fact that no amount will be earned under these awards at
target performance. Performance results must exceed 100% of target performance in order for any PVRSUs to be earned and must meet 108% of target performance in order for the maximum number of PVRSUs
to be earned. The grant date fair value of PVRSU awards granted in 2014 assuming maximum achievement of performance goals is as follows: Mr. Holmes, $5,437,500; Mr. Ballotti, $1,300,000;
Mr. Hanning, $1,349,900; Mr. Conforti, $1,300,000; and Mr. Anderson, $800,000.
- The
actual value realized by each individual with respect to PVRSU awards will depend on the number of shares earned based on our actual
performance over the cumulative three-year performance period measured against the performance goals established at the time of grant. The Outstanding Equity Awards at 2014 Fiscal Year-End Table below
provides information on PVRSU awards made in 2012, 2013 and 2014 based on performance through December 31, 2014.
- (b)
- For
2014, represents annual incentive compensation for 2014 paid in 2015. For 2013, represents annual incentive compensation for 2013 paid in 2014. For
2012, represents annual incentive compensation for 2012 paid in 2013.
- (c)
- See
All Other Compensation Table below for a description of compensation included in this column.
- (d)
- Amounts
have been adjusted to reflect the aggregate incremental cost to Wyndham Worldwide of personal aircraft use in lieu of rates used for imputing
taxable income to an executive for personal aircraft use. For 2012, the amount reported for Mr. Holmes reflects an increase of $43,126 in total compensation as a result of the adjustment.
33
Table of Contents
2014 All Other Compensation Table
The All Other Compensation column in the Summary Compensation Table above includes the following for 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Holmes
($) |
|
|
|
Mr. Ballotti
($) |
|
|
|
Mr. Hanning
($) |
|
|
|
Mr. Conforti
($) |
|
|
|
Mr. Anderson
($) |
|
|
|
Mr. Danziger
($) |
|
|
|
|
Personal use of company aircraft (a)
|
|
|
|
132,785 |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
|
Company automobile (b)
|
|
|
|
22,717 |
|
|
|
23,149 |
|
|
|
21,102 |
|
|
|
17,973 |
|
|
|
20,894 |
|
|
|
3,137 |
|
|
|
|
Financial planning services (c)
|
|
|
|
15,000 |
|
|
|
10,960 |
|
|
|
10,960 |
|
|
|
10,960 |
|
|
|
8,325 |
|
|
|
-- |
|
|
|
|
Spousal travel (c)
|
|
|
|
13,470 |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
|
401(k) company match
|
|
|
|
-- |
|
|
|
15,600 |
|
|
|
15,600 |
|
|
|
15,600 |
|
|
|
15,600 |
|
|
|
-- |
|
|
|
|
Deferred compensation company match
|
|
|
|
345,602 |
|
|
|
98,452 |
|
|
|
44,468 |
|
|
|
94,760 |
|
|
|
74,947 |
|
|
|
9,289 |
|
|
|
|
Dividends (d)
|
|
|
|
538,540 |
|
|
|
238,209 |
|
|
|
254,842 |
|
|
|
229,079 |
|
|
|
112,346 |
|
|
|
287,378 |
|
|
|
|
Executive medical/annual physical (e)
|
|
|
|
250 |
|
|
|
5,000 |
|
|
|
-- |
|
|
|
4,100 |
|
|
|
3,850 |
|
|
|
-- |
|
|
|
|
Aggregate tax gross-up (f)
|
|
|
|
33,497(g) |
|
|
|
18,159 |
|
|
|
12,184 |
|
|
|
16,952 |
|
|
|
16,094 |
|
|
|
2,126 |
|
|
|
|
Severance (h)
|
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
4,786,695 |
|
|
|
|
Total
|
|
|
|
1,101,861 |
|
|
|
409,529 |
|
|
|
359,156 |
|
|
|
389,424 |
|
|
|
252,056 |
|
|
|
5,088,625 |
|
|
- (a)
- The
value shown for personal use of company aircraft is the aggregate incremental cost to Wyndham Worldwide of such use based on the average variable
operating cost per hour flown which includes fuel costs, repositioning, landing and parking fees, catering expenses and associated air crew lodging and related expenses. Fixed costs that do not change
based on usage such as crew salaries, insurance and maintenance are not included.
- (b)
- Aggregate
incremental cost to us of automobile benefit calculated as the aggregate company payment less any executive contribution. The amounts for company
payment include insurance and other charges and exclude tax gross-up described below.
- (c)
- Amounts
exclude tax gross-up described below.
- (d)
- Dividends
paid on vesting of RSUs.
- (e)
- Aggregate
incremental cost to us of annual physical exams for our named executive officers as well as insurance premiums paid in connection with executive
medical benefits.
- (f)
- Aggregate
tax gross-up consisted of the following: Mr. Holmes, automobile, $12,863, financial planning, $11,141 and spousal travel, $9,493;
Mr. Ballotti, automobile, $12,258 and financial planning, $5,901; Mr. Hanning, automobile, $8,224 and financial planning, $3,960; Mr. Conforti, automobile, $11,051 and financial
planning, $5,901; Mr. Anderson, automobile, $11,612 and financial planning, $4,482; and Mr. Danziger, automobile, $2,126.
- (g)
- In
February 2015, Mr. Holmes determined to waive his right to all future tax gross-up payments on perquisites.
- (h)
- Severance
consists of Mr. Danziger's $2,300,000 severance payment and $2,486,695 attributable to accelerated vesting of his outstanding time-based
RSU grants determined by multiplying the number of vested shares and the closing price on the effective date of termination of $72.67.
34
Table of Contents
2014 Grants of Plan-Based Awards Table
The following table summarizes grants of plan-based awards made to the named executive officers in 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name |
|
|
|
Grant
Date |
|
|
|
|
Estimated Possible Payouts Under
Non-Equity Incentive Plan Awards |
|
|
|
|
Estimated Possible Payouts
Under Equity Incentive Plan
Awards (a) |
|
|
|
|
All Other
Stock
Awards:
Number
of Shares
of Stock |
|
|
|
|
All Other
Option
Awards:
Number of
Securities
Underlying |
|
|
|
|
Exercise
or Base
Price of
Option |
|
|
|
|
Grant
Date
Fair
Value of
Stock
and
Option |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Threshold
($) |
|
|
|
|
Target
($) |
|
|
|
|
Maximum
($) |
|
|
|
|
Threshold
(#) |
|
|
|
|
Target
(#) |
|
|
|
|
Maximum
(#) |
|
|
|
|
or Units
(#) |
|
|
|
|
Options
(#) |
|
|
|
|
Awards
($/Sh) |
|
|
|
|
Awards
($) |
|
|
|
|
Mr. Holmes |
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74,517 |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,437,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89,022 |
(c) |
|
|
|
72.97 |
|
|
|
|
1,812,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
-- |
|
|
|
|
74,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
|
|
|
|
750,000 |
|
|
|
|
3,000,000 |
|
|
|
|
4,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Ballotti |
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,631 |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,600,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
-- |
|
|
|
|
17,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
|
|
|
|
172,500 |
|
|
|
|
690,000 |
|
|
|
|
1,035,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Hanning |
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,001 |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,700,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
-- |
|
|
|
|
18,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
|
|
|
|
225,000 |
|
|
|
|
900,000 |
|
|
|
|
1,350,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Conforti |
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,631 |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,600,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
-- |
|
|
|
|
17,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
|
|
|
|
164,500 |
|
|
|
|
658,000 |
|
|
|
|
987,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Anderson |
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,926 |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,600,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
-- |
|
|
|
|
10,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
|
|
|
|
130,000 |
|
|
|
|
520,000 |
|
|
|
|
780,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Danziger |
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/27/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
|
|
|
|
143,750 |
|
|
|
|
575,000 |
|
|
|
|
862,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- (a)
- Represents
the potential range of PVRSUs that may be earned under our 2014 long-term incentive program for above target performance. Target performance
represents a level of earnings per share performance consistent with our projected operating budgets and no shares will be earned pursuant to these awards unless our earnings per share performance
exceeds target performance at the end of the cumulative three-year performance period. Vesting of the PVRSUs is contingent upon achievement of premium levels of adjusted earnings per share performance
over a cumulative three-year period as follows: 100% of PVRSUs (maximum) will vest if premium performance of 108% of target performance is achieved, 75% will vest if premium performance of 106% of
target performance is achieved, 50% will vest if premium performance of 104% of target performance is achieved, 25% will vest if premium performance of 102% of target performance is achieved and 0%
will vest if performance is at or below 100% of target performance. Where premium performance is achieved between the specified performance tiers the number of vested PVRSUs is interpolated.
- The
actual number of PVRSUs earned pursuant to these awards will be determined and paid following the completion of the three-year performance
period based on our actual performance against the performance goal established at the time of grant as adjusted. PVRSUs, if earned, convert to our common stock on a one-for-one basis.
- (b)
- Grant
of RSUs, which vest ratably over a period of four years on each anniversary of February 27, 2014.
- (c)
- Grant
of SSARs, which vest ratably over a period of four years on each anniversary of February 27, 2014. Number of SSARs calculated by dividing the
grant date fair value by the fair value of such rights on the date of grant as determined using the Black-Scholes formula. A discussion of the assumptions used in calculating the fair value of such
rights may be found in Note 19 to our 2014 audited financial statements of our annual report on Form 10-K filed with the SEC on February 13, 2015.
- (d)
- Represents
potential threshold, target and maximum annual incentive compensation for 2014. Amounts actually paid for 2014 are reported in the Non-Equity
Incentive Plan Compensation column of the Summary Compensation Table above.
Under
our 2006 Equity and Incentive Plan, all grants set forth in the table fully vest on a change-in-control. Dividends paid on our common stock are credited for unvested RSUs and are paid in cash on
vesting. Dividends credited with respect to unvested PVRSUs are paid in cash on vesting only to the extent the underlying shares are earned based on achievement of premium performance targets.
35
Table of Contents
Outstanding Equity Awards at 2014 Fiscal Year-End Table
The following table summarizes the number of securities underlying outstanding plan awards for the named executive officers as of December 31,
2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards |
|
|
|
|
Stock Awards |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Number of Securities
Underlying Unexercised
Options
(#) |
|
|
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 |
|
|
|
|
Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares or
Units That
Have Not
Vested |
|
|
|
|
Equity
Incentive
Plan
Awards:
Market
Value of
Unearned
Shares,
or Units
That
Have Not
Vested |
|
|
|
|
|
|
|
|
|
Exercisable |
|
|
|
|
Unexercisable |
|
|
|
|
($) |
|
|
|
|
|
|
|
|
|
(#) |
|
|
|
|
($)(a) |
|
|
|
|
(#) |
|
|
|
|
($)(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Holmes |
|
|
|
|
179,726 |
|
|
|
|
|
|
|
|
|
31.85 |
|
|
|
|
08/01/16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,341 |
|
|
|
|
|
|
|
|
|
22.84 |
|
|
|
|
02/24/16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91,911 |
|
|
|
|
30,638 |
(b) |
|
|
|
30.61 |
|
|
|
|
02/24/17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,891 |
|
|
|
|
48,892 |
(c) |
|
|
|
44.57 |
|
|
|
|
03/01/18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,951 |
|
|
|
|
65,856 |
(d) |
|
|
|
60.24 |
|
|
|
|
02/28/19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
89,022 |
(e) |
|
|
|
72.97 |
|
|
|
|
02/27/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,690 |
(f) |
|
|
|
2,889,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,482 |
(g) |
|
|
|
4,329,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65,364 |
(h) |
|
|
|
5,605,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74,517 |
(i) |
|
|
|
6,390,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
67,309 |
(j) |
|
|
|
5,772,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87,151 |
(k) |
|
|
|
7,474,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,258 |
(l) |
|
|
|
3,195,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Ballotti |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,335 |
(f) |
|
|
|
1,400,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,680 |
(g) |
|
|
|
2,116,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,125 |
(h) |
|
|
|
2,669,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,631 |
(i) |
|
|
|
3,055,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,680 |
(j) |
|
|
|
2,116,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,750 |
(k) |
|
|
|
1,779,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,907 |
(l) |
|
|
|
763,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Hanning |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,968 |
(f) |
|
|
|
1,540,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,046 |
(g) |
|
|
|
2,405,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,125 |
(h) |
|
|
|
2,669,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,001 |
(i) |
|
|
|
3,173,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,045 |
(j) |
|
|
|
2,405,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,750 |
(k) |
|
|
|
1,779,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,250 |
(l) |
|
|
|
793,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Conforti |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,335 |
(f) |
|
|
|
1,400,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,680 |
(g) |
|
|
|
2,116,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,880 |
(h) |
|
|
|
2,562,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,631 |
(i) |
|
|
|
3,055,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,680 |
(j) |
|
|
|
2,116,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,920 |
(k) |
|
|
|
1,708,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,907 |
(l) |
|
|
|
763,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Anderson |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,168 |
(f) |
|
|
|
700,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,462 |
(g) |
|
|
|
1,154,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,430 |
(h) |
|
|
|
1,494,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,926 |
(i) |
|
|
|
1,880,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,461 |
(j) |
|
|
|
1,154,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,620 |
(k) |
|
|
|
996,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,481 |
(l) |
|
|
|
470,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Danziger |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,436 |
(j) |
|
|
|
1,924,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,527 |
(k) |
|
|
|
988,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
Table of Contents
- (a)
- Calculated
using closing price of our common stock on the New York Stock Exchange on December 31, 2014 of $85.76.
- (b)
- Grant
of SSARs, which vest ratably over a period of four years on each anniversary of February 27, 2011.
- (c)
- Grant
of SSARs, which vest ratably over a period of four years on each anniversary of February 27, 2012.
- (d)
- Grant
of SSARs, which vest ratably over a period of four years on each anniversary of February 27, 2013.
- (e)
- Grant
of SSARs, which vest ratably over a period of four years on each anniversary of February 27, 2014.
- (f)
- Grant
of RSUs, which vest ratably over a period of four years on each anniversary of February 27, 2011.
- (g)
- Grant
of RSUs, which vest ratably over a period of four years on each anniversary of February 27, 2012.
- (h)
- Grant
of RSUs, which vest ratably over a period of four years on each anniversary of February 27, 2013.
- (i)
- Grant
of RSUs, which vest ratably over a period of four years on each anniversary of February 27, 2014.
- (j)
- Grant
of PVRSUs which vested following the conclusion of a three-year performance period ending on December 31, 2014 based on three-year cumulative
earnings per share as measured against the pre-established performance tiers as adjusted. Amount reported represents the number of shares earned based on actual performance. These shares were paid to
our named executive officers following the Committee's certification of performance achievement in February 2015.
- (k)
- Grant
of PVRSUs which vests following the conclusion of a three-year performance period ending on December 31, 2015 based on actual three-year
cumulative earnings per share as measured against the pre-established performance tiers. Amount reported is based on performance through December 31, 2014 and represents the maximum number of
shares which may be earned.
- (l)
- Grant
of PVRSUs which vests following the conclusion of a three-year performance period ending on December 31, 2016 based on actual three-year
cumulative earnings per share as measured against the pre-established performance tiers. Amount reported is based on performance through December 31, 2014 and represents 50% of the maximum
number of shares which may be earned.
2014 Option Exercises and Stock Vested Table
The following table summarizes exercises of SSARs and vesting of RSUs and PVRSUs by the named executive officers in 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards |
|
|
|
|
Stock Awards |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name |
|
|
|
|
Date |
|
|
|
|
Number of
Shares
Acquired
on
Exercise
(#) |
|
|
|
|
Value Realized
on
Exercise
($)(a) |
|
|
|
|
Date |
|
|
|
|
Number of
Shares
Acquired
on
Vesting
(#) |
|
|
|
|
Value
Realized
on
Vesting
($)(b) |
|
|
|
|
Mr. Holmes
|
|
|
|
|
8/4/2014 |
|
|
|
|
500,000 |
|
|
|
|
36,695,000 |
|
|
|
|
2/27/14 |
|
|
|
|
211,604 |
|
|
|
|
15,440,744 |
|
|
|
|
Mr. Ballotti
|
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
2/27/14 |
|
|
|
|
93,610 |
|
|
|
|
6,830,722 |
|
|
|
|
Mr. Hanning
|
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
2/27/14 |
|
|
|
|
100,193 |
|
|
|
|
7,311,083 |
|
|
|
|
Mr. Conforti
|
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
2/27/14 |
|
|
|
|
90,458 |
|
|
|
|
6,600,720 |
|
|
|
|
Mr. Anderson
|
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
2/27/14 |
|
|
|
|
45,252 |
|
|
|
|
3,302,038 |
|
|
|
|
Mr. Danziger |
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
2/27/14 |
|
|
|
|
80,040 |
|
|
|
|
5,840,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
3/28/14 |
|
|
|
|
34,219 |
|
|
|
|
2,486,695 |
|
|
- (a)
- Amounts
in this column reflect the number of SSARs exercised multiplied by the difference between the closing market price and exercise price per share at
exercise. The closing market price on August 4, 2014 was $77.08.
- (b)
- Amounts
in this column reflect the number of shares vested multiplied by the closing market price per share on the vesting date (or the next trading day if
the vesting date fell on a date on which there was no trading on the New York Stock Exchange) as follows: February 27, 2014, $72.97; and March 28, 2014, $72.67. Shares vested on
February 27, 2014 include PVRSUs granted in 2011 which vested at maximum based on performance achievement in excess of 108% of target performance.
37
Table of Contents
2014 Nonqualified Deferred Compensation Table
The following table provides information regarding 2014 nonqualified deferred compensation for the named executive officers under our Officer
Deferred Compensation Plan. None of our named executive officers have a balance under our Savings Restoration Plan.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
|
|
|
Executive
Contributions
in 2014
($)(a) |
|
|
|
|
Company
Contributions
in 2014
($)(b) |
|
|
|
|
Aggregate
Earnings
in 2014
($)(c) |
|
|
|
|
Aggregate
Withdrawals/
Distributions
($) |
|
|
|
|
Aggregate
Balance at
12/31/14
($)(d) |
|
|
|
|
Mr. Holmes
|
|
|
|
|
90,001 |
|
|
|
|
90,001 |
|
|
|
|
468,333 |
|
|
|
|
-- |
|
|
|
|
9,041,702 |
|
|
|
|
Mr. Ballotti |
|
|
|
|
41,054 |
|
|
|
|
41,054 |
|
|
|
|
110,172 |
|
|
|
|
-- |
|
|
|
|
1,308,062 |
|
|
|
|
Mr. Hanning |
|
|
|
|
44,468 |
|
|
|
|
44,468 |
|
|
|
|
18,326 |
|
|
|
|
-- |
|
|
|
|
577,472 |
|
|
|
|
Mr. Conforti |
|
|
|
|
39,157 |
|
|
|
|
39,157 |
|
|
|
|
40,889 |
|
|
|
|
-- |
|
|
|
|
744,858 |
|
|
|
|
Mr. Anderson |
|
|
|
|
30,970 |
|
|
|
|
30,970 |
|
|
|
|
34,210 |
|
|
|
|
-- |
|
|
|
|
621,408 |
|
|
|
|
Mr. Danziger |
|
|
|
|
9,289 |
|
|
|
|
9,289 |
|
|
|
|
50,313 |
|
|
|
|
886,850 |
|
|
|
|
0 |
|
|
- (a)
- All
amounts are reported as 2014 compensation in the Summary Compensation Table above. Includes amounts applicable to 2014 annual incentive compensation
paid in 2015.
- (b)
- All
amounts are reported as 2014 compensation in the All Other Compensation Table above. Includes amounts applicable to 2014 annual incentive compensation
paid in 2015.
- (c)
- Represents
gains or losses in 2014 on investment of aggregate balance.
- (d)
- Includes
amounts that were reported as compensation since 2006 as follows: Mr. Holmes, $3,122,488; Mr. Ballotti, $677,096; Mr. Hanning,
$400,236; Mr. Conforti, $420,974; Mr. Anderson, $61,940 and Mr. Danziger, $581,612.
Our
Officer Deferred Compensation Plan is described above under Compensation Discussion and Analysis. The aggregate balances of the named executive officers are invested based on the executive's
investment election made at the time of enrollment. Executives may change their investment elections during the year. For 2014, we offered a choice of investment options including our common stock and
money market, debt, equity and lifecycle funds.
Agreements with Named Executive Officers
The following describes our employment, termination and related arrangements with our named executive officers. Additional information regarding the
termination arrangements of our named executive officers can be found under Potential Payments on Termination or Change-in-Control.
Mr. Holmes
Employment Agreement. In July 2006, we entered into an employment agreement with Mr. Holmes with a term expiring in July 2009, which term automatically
extended to July 2010 pursuant to the terms of the agreement. In December 2008 and December 2012, we executed amendments to the agreement intended to either exempt payments and benefits under the
agreement from or comply with Section 409A of the Code.
In
November 2009, we executed an amendment to Mr. Holmes' agreement which extended the term of his employment from July 2010 to July 2013. The amendment provides that the failure to extend
Mr. Holmes' period of employment or to enter into a new employment agreement with him upon the expiration of his employment term will constitute a constructive discharge under his agreement. In
addition, the amendment provides that in the event of a constructive discharge or a without cause termination, Mr. Holmes is entitled to a lump sum payment equal to 299% of the sum of his
then-current base salary plus an amount equal to the highest annual incentive compensation paid to
38
Table of Contents
him
for any of the three years immediately preceding the year in which his termination occurs, provided that in no event will the annual incentive compensation portion exceed 200% of his then-current
base salary.
The
amendment also eliminates Mr. Holmes' right to elect to terminate employment and receive severance solely upon the occurrence of a change-in-control and eliminates his right to receive a
gross-up in the event an excise tax under Section 4999 of the Code is triggered under his agreement. As amended, his employment agreement provides that in the event Section 4999 of the
Code is triggered, his compensation will be reduced to $1 below the threshold that triggers excise taxes under the Code, but only to the extent that the net after-tax amount received after the
reduction is higher than what he would receive if he paid the applicable excise and related taxes.
In
May 2013, we executed an amendment that extended the term of Mr. Holmes' employment for a period of two years from July 31, 2013 to July 31, 2015. The amendment also included a
provision clarifying the vesting of performance-based equity awards upon specified termination events.
Mr. Holmes'
agreement provides for a minimum base salary of $1 million, annual incentive compensation with a target amount equal to 200% of his base salary subject to meeting performance
goals, grants of long-term incentive compensation as determined by the Committee and employee benefits and perquisites generally available to our executive officers. The agreement provides
Mr. Holmes and his dependents with medical, dental and life insurance benefits through the end of the year during which he reaches age 75, subject to Mr. Holmes' payment of required
employee contributions.
Mr. Holmes'
agreement provides that if his employment with us is terminated by us without cause or due to a constructive discharge, death or disability, all of his then-outstanding equity
awards will fully vest (subject to performance conditions in the case of performance-based equity awards) and, as applicable, remain exercisable for varying periods as described in the agreement. The
agreement provides for customary restrictive covenants including non-competition and non-solicitation covenants effective during the period of employment and for two years after termination of
employment.
Mr. Ballotti
Employment Agreement. In March 2008, we entered into an employment agreement with Mr. Ballotti with a term expiring in March 2011. In December 2008, we
executed an amendment to the agreement intended to either exempt payments and benefits under the agreement from or comply with Section 409A of the Code. In December 2009, we executed an
amendment intended to clarify certain terms regarding the amount of Mr. Ballotti's severance benefit provided under the agreement to address Section 162(m) of the Code. In February 2011,
we executed an amendment that extended the term of Mr. Ballotti's employment from March 2011 to March 2014.
In
March 2014, we announced that Mr. Ballotti, who served as president and CEO of our Wyndham Exchange & Rentals business unit during 2013, was appointed to serve as president and CEO of
our Wyndham Hotel Group business unit to succeed Mr. Danziger who ceased employment with Wyndham Worldwide. This transition was effective in late March 2014. In connection with this transition,
we executed an amendment to Mr. Ballotti's employment agreement that reflects his new title and extends the term of his employment from March 2014 to March 2017.
The
agreement, as amended, provides for a minimum base salary of $550,000, annual incentive compensation with a target amount equal to 100% of base salary subject to meeting performance goals, annual
long-term incentive compensation as determined by the Committee, relocation assistance and participation in employee benefit plans and perquisite programs generally available to our executive
officers.
39
Table of Contents
Under
the agreement, if Mr. Ballotti's employment is terminated by us without cause or due to a constructive discharge, he will receive a lump sum payment equal to 200% of his then-current base
salary plus an amount equal to the highest annual incentive compensation paid to Mr. Ballotti for any of the three years immediately preceding the year in which his employment is terminated
(but in no event will the annual incentive compensation portion exceed 100% of his then-current base salary, and in the event of a termination during the three years following the effective
date, such amount will be no less than his then-current base salary).
In
the event of a without cause or constructive discharge termination, all of Mr. Ballotti's then-outstanding time-based equity awards that would otherwise vest within one year following
termination will vest and any such awards that are stock options or stock appreciation rights will remain exercisable until the earlier of two years following termination and the original expiration
date of the awards. Any then-outstanding performance-based long-term incentive awards would vest and be paid on a prorated basis following the performance period, subject to achievement of performance
goals, based on the portion of the performance period during which Mr. Ballotti was employed plus twelve months (or if less, the entire performance period).
The
agreement provides for customary restrictive covenants including non-competition and non-solicitation covenants effective during the period of employment and for one year following termination if
his employment terminates after the expiration of his employment agreement and for two years following termination if his employment terminates before the expiration of his employment agreement.
Mr. Hanning
Employment Agreement. In November 2009, we entered into an employment agreement with Mr. Hanning with a term expiring in August 2011. In February 2011, we
executed an amendment to the agreement which increased Mr. Hanning's target annual incentive opportunity and extended the term of Mr. Hanning's employment from August 2011 to August
2014. In March 2013, we executed an amendment which increased Mr. Hanning's annual base salary rate and target annual incentive opportunity. In February 2014, we executed an amendment which
increased Mr. Hanning's target annual incentive opportunity. In May 2014, we executed an amendment that extended the term of Mr. Hanning's employment from August 2014 to August 2017.
The
agreement, as amended, provides for a minimum base salary of $715,000, annual incentive compensation with a target amount equal to $900,000 subject to meeting performance goals, grants of
long-term incentive awards on terms as determined by the Committee, employee benefits and perquisites generally available to our executive officers and continuation of life insurance coverage in
effect prior to entering into his employment agreement.
Under
the agreement, if Mr. Hanning's employment is terminated by us without cause or due to a constructive discharge, he will be entitled to a lump-sum payment equal to 200% of the sum of his
then-current base salary plus an amount equal to the highest annual incentive compensation paid to Mr. Hanning for any of the three years immediately preceding the year in which his employment
is terminated (but in no event will the annual incentive compensation portion exceed $900,000).
In
the event of a without cause or constructive discharge termination, all of Mr. Hanning's then-outstanding time-based equity awards that would otherwise vest within one year following
termination will vest and any such award that is a stock option or stock appreciation right will remain exercisable until the earlier of two years following termination and the original expiration
date of such award. Any then-outstanding performance-based long-term incentive awards would vest and be paid on a prorated basis following the performance period, subject to achievement of performance
goals, based on the portion of the performance period during which Mr. Hanning
was employed plus twelve months (or if less, the entire performance period). In the event his employment terminates due
40
Table of Contents
to
death or disability, in addition to earned but unpaid compensation, Mr. Hanning or his estate as applicable would be entitled to a prorated annual incentive award if any with respect to the
year of termination.
The
agreement provides for customary restrictive covenants including non-competition and non-solicitation covenants effective during the period of employment and for two years after termination of
employment. However, if Mr. Hanning's employment terminates due to the expiration of the period of employment and Mr. Hanning has complied with his obligations under his employment
agreement, then Mr. Hanning will not be subject to the non-competition covenants following such expiration unless we exercise our right to subject Mr. Hanning to such obligations for one
year following such expiration by paying Mr. Hanning an amount equal to his then-current base salary plus an amount equal to the highest annual incentive compensation paid to Mr. Hanning
for any of the three years immediately preceding the year in which his employment is terminated but in no event will the annual incentive compensation portion exceed $900,000.
Mr. Conforti
Employment Agreement. In September 2009, we entered into an agreement with Mr. Conforti with a term expiring in September 2012. In May 2012, we executed an
amendment to the agreement that extended the term of Mr. Conforti's employment from September 2012 to September 2015.
The
agreement provides for a minimum base salary of $525,000, annual incentive compensation with a target amount equal to 100% of his base salary subject to meeting performance goals, annual long-term
incentive compensation on terms as determined by the Committee, relocation assistance and employee benefits and perquisites generally available to our executive officers.
Under
the agreement, if Mr. Conforti's employment is terminated by us without cause or due to a constructive discharge, he will be entitled to a lump-sum payment equal to 200% of the sum of his
then-current base salary plus an amount equal to the highest annual incentive compensation award paid to Mr. Conforti with respect to the three years immediately preceding the year in which his
employment is terminated (but in no event will the annual incentive compensation portion exceed 100% of his then-current base salary, and in the event of a termination during the three years following
the effective date, such amount will be $525,000).
In
the event of a without cause or constructive discharge termination, all of Mr. Conforti's then-outstanding time-based equity awards that would otherwise vest within one year following
termination will vest and any such awards that are stock options or stock appreciation rights will remain exercisable until the earlier of two years following termination and the original expiration
date of the awards. Any then-outstanding performance-based long-term incentive awards would vest and be paid on a prorated basis following the performance period, subject to achievement of performance
goals, based on the portion of the performance period during which Mr. Conforti was employed plus twelve months (or if less, the entire performance period).
The
agreement provides for customary restrictive covenants including non-competition and non-solicitation covenants effective during the period of employment and for one year following termination if
his employment terminates after the expiration of his employment agreement, and for two years following termination if his employment terminates before the expiration of his employment agreement.
Mr. Anderson
Employment Letter. Mr. Anderson is employed by us pursuant to an employment letter entered into in March 2008. In December 2008 and thereafter in November
2012, we executed amendments to the employment letter intended to either exempt payments and benefits under the letter from or
41
Table of Contents
comply
with Section 409A of the Code. In March 2009, we executed an amendment eliminating his annual incentive compensation modifier arrangement under his original agreement, and in December
2009, we executed an amendment intended to clarify certain terms regarding the
amount of Mr. Anderson's severance benefit provided under the agreement to address Section 162(m) of the Code.
The
employment letter provides for a minimum base salary of $425,000 and eligibility for an annual incentive award with a target amount equal to 100% of his base salary subject to meeting performance
goals, annual long-term incentive compensation as determined by the Committee and participation in employee benefit plans and perquisite programs generally available to our executive officers.
Mr. Anderson's
employment letter provides that if his employment is terminated by us other than for cause and other than due to disability which prevents him from performing services to us for
a period of 6 months, he will be entitled to receive a lump sum payment equal to 200% of his then-current base salary plus an amount equal to the highest annual incentive compensation paid to
him for any of the three years immediately preceding the year in which his employment is terminated (with the annual incentive compensation portion in no event to exceed 100% of his then-current base
salary).
The
employment letter further provides that upon Mr. Anderson's termination by us without cause, he will be entitled to vesting of his outstanding time-based equity awards that would otherwise
vest within one year following termination and up to a two-year period to exercise any such awards that are stock options or stock appreciation rights; and vesting of his outstanding performance-based
long-term incentive awards to be paid on a prorated basis following the performance period, subject to achievement of performance goals, based on the portion of the performance period during which
Mr. Anderson was employed plus twelve months (or if less, the entire performance period). Mr. Anderson's entitlement to these severance benefits is conditioned upon his release of claims
against us and compliance with non-competition and non-solicitation covenants effective for two years following such termination.
Mr. Danziger
Employment Agreement. In November 2008, we entered into an employment agreement with Mr. Danziger with a term expiring in November 2011. In December 2009,
we executed an amendment to the agreement intended to clarify certain terms regarding the amount of Mr. Danziger's severance benefit provided under the agreement to address
Section 162(m) of the Code. In February 2011, we executed an amendment that extended the term of Mr. Danziger's employment from November 2011 to November 2013 and in March 2013 we
executed an amendment which extended the term of employment from November 2013 to November 2014. As discussed above, Mr. Danziger's employment with Wyndham Worldwide ceased in March 2014
and he became entitled to severance compensation consistent with the terms of his employment agreement.
The
agreement, as in effect during 2013, provided for a minimum base salary of $500,000, annual incentive compensation with a target amount equal to 100% of base salary subject to meeting performance
goals, annual long-term incentive compensation as determined by the Committee, relocation assistance and participation in employee benefit plans and perquisite programs generally available to our
executive officers.
Mr. Danziger's
employment agreement provided for the following benefits upon termination of employment without cause: a lump sum payment equal to 200% of his then-current base salary plus an
amount equal to the highest annual incentive compensation paid to him for any of the three years immediately preceding the year in which his employment is terminated (with the annual incentive
compensation portion in no event to exceed 100% of his then-current base salary); vesting of his outstanding time-based equity awards that would otherwise vest within one year following
42
Table of Contents
termination
and up to a two-year period to exercise any such awards that are stock options or stock appreciation rights; and vesting of his outstanding performance-based long-term incentive awards to
be paid on a prorated basis following the performance period, subject to achievement of performance goals, based on the portion of the performance period during which Mr. Danziger was employed
plus twelve months (or if less, the entire performance period).
As
a result of Mr. Danziger's termination of employment in March 2014, he became entitled to the following severance benefits under his employment agreement: $2,300,000 lump sum severance
payment; accelerated vesting of 34,219 time-vested RSUs with a value of $2,486,695 (determined by multiplying the number of vested shares and the closing price on the effective date of termination of
$72.67); and prorated vesting, subject to achievement of performance goals, of 22,436 outstanding PVRSUs granted in March 2012 and 16,600 outstanding PVRSUs granted in February 2013. The proration
will be determined based on the portion of the performance period during which Mr. Danziger was employed plus twelve months (or if less, the entire performance period), and any earned PVRSUs
will be paid to Mr. Danziger at the same time that the awards are paid to eligible employees. Under the agreement, Mr. Danziger is also subject to customary restrictive covenants
including non-competition and non-solicitation covenants for two years following the effective date of his termination.
43
Table of Contents
Potential Payments on Termination or Change-in-Control
The following table describes the potential payments and benefits to which the named executive officers who are currently serving as executive
officers would be entitled upon termination of employment or change-in-control. For a description of the severance payments and benefits to which Mr. Danziger became entitled in connection with
his separation from employment with Wyndham in March 2014, see above under Agreements with Named Executive Officers Mr. Danziger. The payments described in the table are
based on the assumption that the termination of employment or change-in-control occurred on December 31, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
|
|
Termination Event |
|
|
|
|
Cash
Severance
($)(a) |
|
|
|
|
Continuation
of Medical
Benefits
(present value)
($) |
|
|
|
|
Acceleration
of Equity
Awards
($)(b) |
|
|
|
|
Total
Termination
Payments
($)(c) |
|
|
|
|
Mr. Holmes |
|
|
|
Voluntary Retirement,
Resignation or Involuntary
Termination |
|
|
|
|
0 |
|
|
|
|
336,483 |
|
|
|
|
0 |
|
|
|
|
336,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Death or Disability |
|
|
|
|
0 |
|
|
|
|
336,483 |
|
|
|
|
45,374,551 |
|
|
|
|
45,711,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termination without Cause or
Constructive Discharge |
|
|
|
|
13,455,000 |
|
|
|
|
336,483 |
|
|
|
|
45,374,551 |
|
|
|
|
59,166,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qualifying Termination Following
Change-in-Control |
|
|
|
|
13,455,000 |
|
|
|
|
336,483 |
|
|
|
|
45,374,551 |
|
|
|
|
59,166,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Ballotti |
|
|
|
Voluntary Retirement,
Resignation or Involuntary
Termination |
|
|
|
|
0 |
|
|
|
|
N/A |
|
|
|
|
0 |
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Death or Disability |
|
|
|
|
0 |
|
|
|
|
N/A |
|
|
|
|
14,666,332 |
|
|
|
|
14,666,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termination without Cause or
Constructive Discharge |
|
|
|
|
2,760,000 |
|
|
|
|
N/A |
|
|
|
|
9,027,441 |
|
|
|
|
11,787,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qualifying Termination Following
Change-in-Control |
|
|
|
|
2,760,000 |
|
|
|
|
N/A |
|
|
|
|
14,666,332 |
|
|
|
|
17,426,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Hanning |
|
|
|
Voluntary Retirement,
Resignation or Involuntary
Termination |
|
|
|
|
0 |
|
|
|
|
N/A |
|
|
|
|
0 |
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Death or Disability |
|
|
|
|
0 |
|
|
|
|
N/A |
|
|
|
|
15,559,866 |
|
|
|
|
15,559,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termination without Cause or
Constructive Discharge |
|
|
|
|
3,290,000 |
|
|
|
|
N/A |
|
|
|
|
9,668,925 |
|
|
|
|
12,958,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qualifying Termination Following
Change-in-Control |
|
|
|
|
3,290,000 |
|
|
|
|
N/A |
|
|
|
|
15,559,866 |
|
|
|
|
18,849,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Conforti |
|
|
|
Voluntary Retirement,
Resignation or Involuntary
Termination |
|
|
|
|
0 |
|
|
|
|
N/A |
|
|
|
|
0 |
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Death or Disability |
|
|
|
|
0 |
|
|
|
|
N/A |
|
|
|
|
14,488,380 |
|
|
|
|
14,488,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termination without Cause or
Constructive Discharge |
|
|
|
|
2,632,000 |
|
|
|
|
N/A |
|
|
|
|
8,920,669 |
|
|
|
|
11,552,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qualifying Termination Following
Change-in-Control |
|
|
|
|
2,632,000 |
|
|
|
|
N/A |
|
|
|
|
14,488,380 |
|
|
|
|
17,120,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Anderson |
|
|
|
Voluntary Retirement,
Resignation or Involuntary
Termination |
|
|
|
|
0 |
|
|
|
|
N/A |
|
|
|
|
0 |
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Death or Disability |
|
|
|
|
0 |
|
|
|
|
N/A |
|
|
|
|
8,321,293 |
|
|
|
|
8,321,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termination without Cause or
Constructive Discharge |
|
|
|
|
2,080,000 |
|
|
|
|
N/A |
|
|
|
|
5,023,821 |
|
|
|
|
7,103,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qualifying Termination Following
Change-in-Control |
|
|
|
|
2,080,000 |
|
|
|
|
N/A |
|
|
|
|
8,321,293 |
|
|
|
|
10,401,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- (a)
- Cash
severance payable upon a Qualifying Termination Following a Change-in-Control assumes that the employment of the named executive officer was terminated
on a change-in-control as a termination without cause or constructive discharge.
44
Table of Contents
- (b)
- Calculated
using closing price of our common stock on the New York Stock Exchange on December 31, 2014 of $85.76. Table assumes all unvested equity
awards to which the executive would be entitled were settled on December 31, 2014.
Upon
a change-in-control, all grants made under our 2006 Equity and Incentive Plan fully vest and any performance conditions imposed with respect to awards are deemed to be fully achieved whether or
not the executive's employment is terminated.
Amounts
reflected for Termination without Cause or Constructive Discharge include PVRSUs assuming maximum achievement which, if earned, would not be paid until following the completion of the
cumulative three-year performance period based on actual performance and on a prorated basis on the portion of the performance period during which the named executive officer was employed plus service
credit as defined by employment agreement (or if less, the entire performance period).
- (c)
- Amounts
do not reflect whether any reduction in payments would apply in connection with golden parachute rules under Sections 280G and 4999 of the
Code.
Accrued Pay. The amounts shown in the table above do not include payments and benefits, including accrued salary and annual incentive compensation, to the extent
they are provided on a non-discriminatory basis to salaried employees generally upon termination of employment.
Deferred Compensation. The amounts shown in the table do not include distributions of aggregate balances under the Officer Deferred Compensation Plan. Those
amounts are shown in the Nonqualified Deferred Compensation Table above.
Covered Terminations. The table assumes a termination of employment that is eligible for severance or other benefits under the terms of the named executive
officers' employment agreement and our 2006 Equity and Incentive Plan.
-
- A termination of an executive officer is for cause if it is for any of the following reasons: the executive's willful failure to
substantially perform his duties as our employee (other than any such failure resulting from incapacity due to physical or mental illness); any act of fraud, misappropriation, dishonesty, embezzlement
or similar conduct against us or the executive's conviction of a felony or any crime involving moral turpitude (which conviction, due to the passage of time or otherwise, is not subject to further
appeal); the executive's gross negligence in the performance of his duties; or the executive purposefully or negligently makes (or has been found to have made) a false certification to us pertaining
to our financial statements.
-
- Subject to the individual employment agreements, an executive suffers a constructive discharge if any of the following occur: any
material breach or failure by us to fulfill our obligations under the executive's employment agreement; any material reduction in base salary; or any material diminution to the executive's authority,
duties or responsibilities. For Mr. Holmes, constructive discharge also includes our decision not to renew his employment agreement; a relocation of over thirty miles; if he no longer serves as
our CEO or reports to the Board; or is not nominated for election to our Board. For Mr. Hanning and Mr. Conforti, constructive discharge also includes a relocation of over fifty miles.
-
- A without cause termination occurs if the executive's employment is terminated by us other than due to death, disability or
termination for cause. In addition, a without cause termination will also be deemed to have occurred for Mr. Holmes if an acquiring company does not agree to assume his employment agreement
following a qualifying change-in-control or ownership.
Continuation of Medical Benefits. Mr. Holmes' agreement provides Mr. Holmes and his dependents with medical benefits through the end of the year
during which he reaches age 75, subject to Mr. Holmes' payment of required employee contributions, regardless of the termination event. The actuarial assumptions used to calculate continued
medical benefits for Mr. Holmes include a discount rate of 3.95%; no mortality assumptions for Mr. Holmes, his spouse or children; and standard pre-retirement and post-retirement per
capita costs for Mr. Holmes and his spouse and standard per capita costs for Mr. Holmes' children.
45
Table of Contents
Acceleration of Equity Awards. Upon a change-in-control as defined in our 2006 Equity and Incentive Plan, grants made to all eligible employees, including the
named executive officers, under our 2006 Equity and Incentive Plan fully vest and any performance conditions imposed with respect to awards are deemed to be fully achieved. Under the individual
agreements for awards, all awards fully vest on the death or disability of the named executive officer. The table does not reflect a reduction in shares that would be withheld for taxes on vesting.
Under
our 2006 Equity and Incentive Plan, a change-in-control generally means any person or persons (other than us, any fiduciary holding securities under a company employee benefit plan, or any of
our subsidiaries) becomes the beneficial owner of 30 percent or more of our outstanding voting shares, a merger of Wyndham Worldwide or any of our subsidiaries is consummated with another
company, or our stockholders approve a plan of liquidation of the company or all or substantially all of our assets are sold (and following each of the foregoing events, a majority of our
pre-change-in-control Board does not constitute a majority of the surviving or purchasing entity's board); or individuals who presently make up our Board or who become members of our Board with the
approval of at least two-thirds of our existing Board (other than a new Director who assumes office in connection with an actual or threatened election contest) cease to be at least a majority of the
Board.
Payments Upon Change-in-Control Alone. For our named executive officers, severance payments in connection with a change-in-control are made only if the executive
suffers a covered termination of employment. The table assumes that the employment of these executives was terminated on a change-in-control as a constructive discharge or termination without cause.
Grants made under our 2006 Equity and Incentive Plan fully vest on a change-in-control whether or not the executive's employment is terminated.
Related Party Transactions
A member of Mr. Hanning's family is a member of a law firm which has provided and continues to provide services to our vacation ownership
business. Fees and expenses paid for such services were approximately $278,000 in 2014 based on the firm's customary rates.
Another
member of Mr. Hanning's family currently serves as an Executive Vice President, Sales of our vacation ownership business. This individual was hired in 1981, prior to
Mr. Hanning's employment. In 2014, this individual received total cash compensation consisting of base salary, commission and incentive compensation of $624,353 and was granted 3,955 RSUs and
988 PVRSUs. All compensation and incentive awards were paid and awarded on a basis consistent with that applied to our other associates.
46
Table of Contents
ADVISORY VOTE ON EXECUTIVE COMPENSATION
We are asking our shareholders to cast a non-binding advisory vote to approve the compensation of our named executive officers described in the
Compensation Discussion and Analysis and in the tabular and accompanying narrative disclosure regarding named executive officer compensation (Say-on-Pay Vote). We encourage you to read the
Compensation Discussion and Analysis and the tables and narratives for the details on the 2014 compensation of our named executive officers.
Because
your vote is advisory, it will not be binding upon or overrule any decisions of the Board, nor will it create or imply any additional fiduciary duty on the part of the Board. However, the
Compensation Committee values the opinions expressed by shareholders in their vote on this
proposal and will take into account the outcome of the vote when considering executive compensation arrangements in the future.
Executive Compensation Program
Total Compensation Strategy. As discussed in the Compensation Discussion and Analysis, our executive compensation program is designed
to:
-
- support a high-performance environment by linking compensation with performance
-
- attract, motivate and retain key executives who are crucial to our long-term success
-
- provide our executives with market competitive compensation consistent with comparable companies and
-
- support a long-term focus for our executives that aligns their interests with the interests of our shareholders.
Program Highlights. Highlights of our executive compensation program and measures demonstrating our pay-for-performance approach include the
following:
-
- Our annual incentive compensation program awards are based on achievement of performance metrics which are aligned with key business
objectives designed to drive short-term financial and operating performance and thus create value for our shareholders.
-
- In 2014, we maintained the inclusion of a performance-based equity incentive award as part of our executive compensation program, the
vesting of which is contingent upon achievement of premium levels of adjusted earnings per share performance over a cumulative three-year period. No shares will be earned with respect to these awards
unless premium performance in excess of 100% of target is achieved and the maximum award opportunity will be earned only if premium performance of 108% of target is achieved.
-
- Equity awards granted to our named executive officers under our long-term incentive program constitute approximately 74% of their
target annual total compensation. These awards are subject to multi-year vesting requirements and, with respect to the PVRSUs, premium adjusted earnings per share performance achievement, and are
designed to retain our executives and ensure that a significant portion of the executives' compensation is tied to stock price performance.
-
- Our executive officer stock ownership guidelines require our named executive officers to own common stock worth a specified multiple
of base salary within the required time period. Our CEO is required to own common stock with a market value of at least four times his base salary and our other named executed officers are required to
own common stock with a market value of at least two times their base salary.
47
Table of Contents
-
- A significant portion (ranging from 38% to 49%) of total compensation for our executives is considered by us to be at-risk.
-
- None of our executive officers are entitled to severance exceeding 2.99 times base salary and the executive's highest annual incentive
compensation paid to the executive in any of the three years preceding termination of employment not to exceed target. Our named executive officers do not have the right to receive severance solely
upon the occurrence of a change-in-control.
-
- None of our executive officers are entitled to any tax gross-up in connection with severance payments upon termination of employment.
-
- The Compensation Committee is advised by an independent compensation consultant who reviews our executive compensation program against
our peer group and advises the Committee on executive compensation trends.
Performance Highlights
We believe our executive compensation program provides our named executive officers robust incentives designed to achieve exceptional strategic and
financial performance. In 2014, we built on our leadership position in each of its hospitality industry segments through superior execution by all of our businesses. Our senior management team
increased shareholder value by focusing on earnings and cash flow, expanding our brand portfolio of fee-for-service businesses, augmenting our asset-light vacation ownership model, driving greater
migration to web-based transactions in all our businesses and strengthening our franchisee value proposition in the hotel business. These efforts produced strong financial and operational results for
2014 including:
-
- Total revenues of $5.3 billion representing a 5% increase over 2013.
-
- Adjusted net income of $573 million representing an 11% increase over 2013 adjusted net income (our 2014 net income was
$529 million representing a 22% increase over 2013 net income).*
-
- For our hotel business, an 8.4% increase in domestic revenue per available room (RevPAR) and a 4.4% increase in total system-wide
RevPAR compared to 2013.
-
- For our exchange and rentals business, a 5% increase in revenues over 2013.
-
- For our vacation ownership business, a 5% increase in revenues over 2013.
Based
on our strong financial and operational performance at the corporate and business unit levels, we were able to deliver substantial value to shareholders including:
-
- Our diluted adjusted earnings per share increased 18% for the full year 2014 compared with 2013. Our diluted earnings per share
increased 30% for the full year 2014 compared with 2013.*
-
- In 2014, our share price appreciated 16%. This, together with our 2014 dividend payments, resulted in a 19% total return to
shareholders during 2014.
-
- Our one-year total shareholder return (19%) and our three-year total shareholder return (140%) exceeded the one-year (14%) and
three-year (75%) total returns on the S&P 500 index.
* For a full reconciliation of adjusted net income to GAAP net income and diluted adjusted earnings per share to GAAP diluted earnings per share,
please see Appendix A attached to this proxy statement.
48
Table of Contents
Recommendation for Approval
For the reasons discussed above, the Board recommends that shareholders vote in favor of the following resolution:
RESOLVED, that the company's shareholders approve, on an advisory basis, the compensation of the named executive officers described in the Compensation
Discussion and Analysis and the tabular and related narrative disclosure regarding named executive officer compensation included in this proxy statement pursuant to the compensation disclosure rules
of the SEC.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR THE
APPROVAL OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS
49
Table of Contents
RATIFICATION OF THE APPOINTMENT OF THE INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
The Audit Committee has selected Deloitte & Touche LLP as our independent registered public accounting firm to conduct an integrated
audit of our consolidated financial statements and internal control over financial reporting for fiscal year 2015. The Board seeks an indication from shareholders of their approval or disapproval of
the Audit Committee's appointment of Deloitte & Touche LLP as independent registered public accounting firm (auditor) for fiscal year 2015. The Audit Committee will consider the outcome
of our shareholders' vote in connection with the selection of our auditor but is not bound by the vote. If the appointment is not ratified, the Audit Committee will consider whether a different
independent auditor should be selected.
Deloitte &
Touche LLP served as our auditor for 2014. No relationship exists between Deloitte & Touche LLP and us other than the usual relationship between auditor and
client. Representatives of Deloitte & Touche LLP will be present at the annual meeting of shareholders and available to respond to questions and will have the opportunity to make a
statement if such representatives desire to do so.
Disclosure About Fees
The following table presents fees for professional audit services billed by Deloitte & Touche LLP for the integrated audit of our
financial statements and internal control over financial reporting for the fiscal years ended December 31, 2014 and 2013 as well as fees billed for other services rendered by Deloitte &
Touche LLP during those periods.
|
|
|
|
|
|
|
|
Type of Fees
|
|
2014
|
|
2013
|
|
Audit Fees |
|
$
|
6,936,164 |
|
$
|
6,989,353 |
|
Audit-Related Fees |
|
$ |
1,635,592 |
|
$ |
692,586 |
|
Tax Fees |
|
$
|
5,633,742 |
|
$
|
4,600,004 |
|
All Other Fees |
|
$ |
0 |
|
$ |
0 |
|
|
|
|
|
|
|
|
|
Total |
|
$
|
14,205,498 |
|
$
|
12,281,943 |
|
In
the above table, in accordance with the SEC's definitions and rules, audit fees are fees billed for the integrated audit of our annual financial statements and internal control over financial
reporting included in our Form 10-K for fiscal year 2014, review of interim financial statements included in our Form 10-Qs for the quarters ended March 31, June 30 and
September 30, 2014 and for services that are normally provided by the auditor in connection with statutory and regulatory filings or engagements. Audit-related fees are fees billed for
assurance and related services that are reasonably related to the performance of the audit or review of our financial statements. Tax fees are fees billed for tax compliance, tax advice and tax
planning. All other fees are fees billed for any services not included in the first three categories.
Pre-Approval of Audit and Non-Audit Services
Under the Audit Committee charter, among its other duties the Audit Committee is responsible for the pre-approval of all audit and permissible
non-audit services to be performed for us by our auditor. The Audit Committee maintains a policy regarding pre-approval of all audit and non-audit services provided by our auditor. Under the policy,
the Audit Committee pre-approves on an annual basis all audit, audit-related and tax services to be provided by our auditor. On an ongoing basis, management communicates specific projects and
categories of service other than relating to audit, audit-related and tax services for which the advance approval of the Audit Committee is requested. The Audit Committee reviews these requests and
advises management if the Audit Committee approves the engagement of the auditor.
50
Table of Contents
The
Audit Committee discusses with Deloitte & Touche LLP the nature of the services being performed as well as considerations with respect to maintaining the independence of
Deloitte & Touche LLP. On a quarterly basis, management and Deloitte & Touche LLP report to the Audit Committee regarding the actual fees incurred for all services provided
by the auditor. For 2014, all of the audit, audit-related, tax and all other fees listed in the table above were pre-approved by the Audit Committee.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE
FOR THE ADOPTION OF THE PROPOSAL TO RATIFY THE APPOINTMENT OF THE
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
51
Table of Contents
Appendix A
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2014 |
|
|
|
As
Reported |
|
Executive
Departure
Costs (a) |
|
Venezuela
Currency
Devaluation (c) |
|
Legacy
Adjustments (d) |
|
VAT
Adjustment (f) |
|
Restructuring
Costs (g) |
|
Loss on Sale
and Asset
Impairments (h) |
|
As
Adjusted
non-GAAP |
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service and membership fees |
|
$ |
2,431 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
2,431 |
|
Vacation ownership interest sales |
|
|
1,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,485 |
|
Franchise fees |
|
|
632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
632 |
|
Consumer financing |
|
|
427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
427 |
|
Other |
|
|
306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
5,281 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
5,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
|
2,262 |
|
|
|
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,252 |
|
Cost of vacation ownership interests |
|
|
171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
171 |
|
Consumer financing interest |
|
|
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71 |
|
Marketing and reservation |
|
|
802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
802 |
|
General and administrative |
|
|
755 |
|
|
(4 |
) |
|
|
|
|
1 |
|
|
2 |
|
|
|
|
|
|
|
|
754 |
|
Loss on sale and asset impairments |
|
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35 |
) |
|
-- |
|
Restructuring |
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11 |
) |
|
|
|
|
-- |
|
Depreciation and amortization |
|
|
233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
4,340 |
|
|
(4 |
) |
|
(10 |
) |
|
1 |
|
|
2 |
|
|
(11 |
) |
|
(35 |
) |
|
4,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
941 |
|
|
4 |
|
|
10 |
|
|
(1 |
) |
|
(2 |
) |
|
11 |
|
|
35 |
|
|
998 |
|
Other income, net |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7 |
) |
Interest expense |
|
|
113 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
115 |
|
Interest income |
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
845 |
|
|
4 |
|
|
10 |
|
|
(1 |
) |
|
(4 |
) |
|
11 |
|
|
35 |
|
|
900 |
|
Provision for income taxes |
|
|
316 |
|
|
1 |
(b) |
|
1 |
(b) |
|
1 |
(e) |
|
(2 |
) (b) |
|
4 |
(b) |
|
6 |
(b) |
|
327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
529 |
|
|
3 |
|
|
9 |
|
|
(2 |
) |
|
(2 |
) |
|
7 |
|
|
29 |
|
|
573 |
|
Net income attributable to noncontrolling interest |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Wyndham shareholders |
|
$ |
529 |
|
$ |
3 |
|
$ |
9 |
|
$ |
(2 |
) |
$ |
(2 |
) |
$ |
7 |
|
$ |
29 |
|
$ |
573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
4.22 |
|
$ |
0.02 |
|
$ |
0.07 |
|
$ |
(0.01 |
) |
$ |
(0.02 |
) |
$ |
0.06 |
|
$ |
0.23 |
|
$ |
4.57 |
|
Diluted |
|
|
4.18 |
|
|
0.02 |
|
|
0.07 |
|
|
(0.01 |
) |
|
(0.02 |
) |
|
0.06 |
|
|
0.23 |
|
|
4.53 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
125 |
|
|
125 |
|
|
125 |
|
|
125 |
|
|
125 |
|
|
125 |
|
|
125 |
|
|
125 |
|
Diluted |
|
|
127 |
|
|
127 |
|
|
127 |
|
|
127 |
|
|
127 |
|
|
127 |
|
|
127 |
|
|
127 |
|
The above table reconciles certain non-GAAP financial measures. The presentation of these adjustments is intended to
permit the comparison of particular adjustments as they appear in the line items of the income statement in order to assist investors' understanding of the overall impact of such adjustments. This
non-GAAP reconciliation table should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.
Note: EPS amounts may not add due to rounding.
- (a)
- Related
to costs associated with an executive's departure at the Company's lodging business.
- (b)
- Relates
to the tax effect of the adjustment.
- (c)
- Represents
the devaluation of the official exchange rate of Venezuela at the Company's vacation exchange and rentals business.
- (d)
- Relates
to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.
- (e)
- Relates
to the reversal of a state tax accrual.
- (f)
- Relates
to the reversal of a reserve for value-added taxes at the Company's vacation exchange and rentals business.
- (g)
- Relates
to (i) costs incurred as a result of organizational realignment initiatives at the Company's lodging and vacation exchange and rentals
businesses, partially offset by (ii) the reversal of a portion of a restructuring reserve of $1 million established during the fourth quarter of 2013.
- (h)
- Relates
to (i) a loss on the sale of a business and a write-down of an equity investment at the Company's vacation exchange and rentals business and
(ii) a write-down of an investment in a joint venture at the Company's lodging business.
A-1
Table of Contents
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2013 |
|
|
|
As
Reported |
|
Legacy
Adjustments (a) |
|
Acquisition
Costs (c) |
|
Early
Extinguishment
of Debt (e) |
|
Restructuring
Costs (f) |
|
Asset
Impairment (g) |
|
As
Adjusted
non-GAAP |
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service fees and membership |
|
$ |
2,329 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
2,329 |
|
Vacation ownership interest sales |
|
|
1,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,379 |
|
Franchise fees |
|
|
599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
599 |
|
Consumer financing |
|
|
426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
426 |
|
Other |
|
|
276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
5,009 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
5,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
|
2,161 |
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
2,159 |
|
Cost of vacation ownership interests |
|
|
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
155 |
|
Consumer financing interest |
|
|
78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78 |
|
Marketing and reservation |
|
|
751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
751 |
|
General and administrative |
|
|
720 |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
719 |
|
Loss on sale and asset impairments |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8 |
) |
|
-- |
|
Restructuring |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
(9 |
) |
|
|
|
|
1 |
|
Depreciation and amortization |
|
|
216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
4,099 |
|
|
(1 |
) |
|
(2 |
) |
|
-- |
|
|
(9 |
) |
|
(8 |
) |
|
4,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
910 |
|
|
1 |
|
|
2 |
|
|
-- |
|
|
9 |
|
|
8 |
|
|
930 |
|
Other income, net |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6 |
) |
Interest expense |
|
|
131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
131 |
|
Early extinguishment of debt |
|
|
111 |
|
|
|
|
|
|
|
|
(111 |
) |
|
|
|
|
|
|
|
-- |
|
Interest income |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
683 |
|
|
1 |
|
|
2 |
|
|
111 |
|
|
9 |
|
|
8 |
|
|
814 |
|
Provision for income taxes |
|
|
250 |
|
|
(2 |
) (b) |
|
1 |
(d) |
|
42 |
(d) |
|
4 |
(d) |
|
3 |
(d) |
|
298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
433 |
|
|
3 |
|
|
1 |
|
|
69 |
|
|
5 |
|
|
5 |
|
|
516 |
|
Net loss attributable to noncontrolling interest |
|
|
(1 |
) |
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Wyndham shareholders |
|
$ |
432 |
|
$ |
3 |
|
$ |
1 |
|
$ |
69 |
|
$ |
5 |
|
$ |
5 |
|
$ |
515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
3.25 |
|
$ |
0.02 |
|
$ |
0.01 |
|
$ |
0.51 |
|
$ |
0.04 |
|
$ |
0.04 |
|
$ |
3.87 |
|
Diluted |
|
|
3.21 |
|
|
0.02 |
|
|
0.01 |
|
|
0.51 |
|
|
0.04 |
|
|
0.04 |
|
|
3.83 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
133 |
|
|
133 |
|
|
133 |
|
|
133 |
|
|
133 |
|
|
133 |
|
|
133 |
|
Diluted |
|
|
135 |
|
|
135 |
|
|
135 |
|
|
135 |
|
|
135 |
|
|
135 |
|
|
135 |
|
The above table reconciles certain non-GAAP financial measures. The presentation of these adjustments is intended to
permit the comparison of particular adjustments as they appear in the line items of the income statement in order to assist investors'understanding of the overall impact of such adjustments.This
non-GAAP reconciliation table should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.
Note: EPS amounts may not add due to rounding.
- (a)
- Relates
to the net expense from the resolution of and adjustment to certain contingent liabilites and assets resulting from our separation from Cendant.
- (b)
- Relates
to a state tax accrual for legacy tax matters.
- (c)
- Relates
to the costs incurred in connection with the acquisition of Midtown 45, a NYC property (January 2013) at the Company's vacation ownership business.
- (d)
- Relates
to the tax effect of the adjustment.
- (e)
- Represents
costs incurred for the early repurchase of a portion of the Company's 7.375%, 5.75% and 6.00% senior unsecured notes and the remaining portion of
the 9.875% senior unsecured notes.
- (f)
- Relates
to costs incurred as a result of an organizational realignment initiative at the Company's lodging business.
- (g)
- Relates
primarily to a non-cash impairment charge from a partial write-down of the Hawthorn trademark at the Company's lodging business.
A-2
|
Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners)
Date KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: THIS PROXY CARD
IS VALID ONLY WHEN SIGNED AND DATED. WYNDHAM WORLDWIDE CORPORATION
M87786-P60542 ! ! ! ! ! ! ! ! ! For All Withhold All For All Except To
withhold authority to vote for any individual nominee(s), mark For All
Except and write the number(s) of the nominee(s) on the line below. WYNDHAM
WORLDWIDE CORPORATION ATTN: EVA JOSEPH 22 SYLVAN WAY PARSIPPANY, NJ 07054
VOTE BY INTERNET - www.proxyvote.com Use the Internet to transmit your voting
instructions and for electronic delivery of information up until 11:59 P.M.
Eastern Time the day before the meeting date. Have your proxy card in hand
when you access the web site and follow the instructions to obtain your
records and to create an electronic voting instruction form. ELECTRONIC
DELIVERY OF FuTuRE PROXY MATERIALS If you would like to reduce the costs
incurred by our company in mailing proxy materials, you can consent to
receiving all future proxy statements, proxy cards and annual reports
electronically via e-mail or the Internet. To sign up for electronic
delivery, please follow the instructions above to vote using the Internet
and, when prompted, indicate that you agree to receive or access proxy
materials electronically in future years. VOTE BY PHONE - 1-800-690-6903 Use
any touch-tone telephone to transmit your voting instructions up until 11:59 P.M.
Eastern Time the day before the meeting date. Have your proxy card in hand
when you call and then follow the instructions. VOTE BY MAIL Mark, sign and
date your proxy card and return it in the postage-paid envelope we have
provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way,
Edgewood, NY 11717. NOTE: Please sign as name(s) appear(s) hereon. Joint
owners should each sign. When signing as attorney, executor, administrator,
trustee or guardian, please give full title as such. 2. Advisory vote to
approve the Wyndham Worldwide Corporation executive compensation program. 3.
Ratification of the appointment of Deloitte & Touche LLP to serve as the
independent registered public accounting firm for fiscal year 2015. NOTE: To
transact any other business that may be properly brought before the meeting
or any adjournment or postponement of the meeting. 01) Stephen P. Holmes 02)
Myra J. Biblowit 03) James E. Buckman 04) George Herrera 05) The Right
Honourable Brian Mulroney 06) Pauline D.E. Richards 07) Michael H. Wargotz 1.
Election of Directors Nominees The Board of Directors recommends you vote FOR
the following: For Against Abstain The Board of Directors recommends you vote
FOR proposals 2 and 3:
|
|
M87787-P60542 ADMISSION TICKET Bring this admission ticket with
you to the meeting on May 14, 2015. Do not mail. This admission ticket admits
you to the meeting. You will not be allowed to attend the meeting without an
admission ticket or other proof of stock ownership. WYNDHAM WORLDWIDE CORPORATION
2015 Annual Meeting of Shareholders Thursday, May 14, 2015 11:30 a.m. local
time Wyndham Worldwide Corporation 22 Sylvan Way Parsippany, New Jersey 07054
Important Notice Regarding the Availability of Proxy Materials for the Annual
Meeting: The Notice and Proxy Statement and 2014 Annual Report to
Shareholders are available at www.proxyvote.com. NON-TRANSFERABLE
NON-TRANSFERABLE WYNDHAM WORLDWIDE CORPORATION Annual Meeting of Shareholders
May 14, 2015 11:30 AM This proxy is solicited by the Board of Directors The
undersigned hereby appoints Stephen P. Holmes and Scott G. McLester, and each
of them, with power to act without the other and with power of substitution,
as proxies and attorneys-in-fact and hereby authorizes them to represent and
vote, as provided on the reverse side, all the shares of Wyndham Worldwide
Corporation Common Stock which the undersigned is entitled to vote, and, in
their discretion, to vote upon such other business as may properly come
before the Annual Meeting of Shareholders of the company to be held May 14,
2015, or at any adjournment or postponement thereof, with all powers which
the undersigned would possess if present at the Meeting. Wyndham Worldwide
Corporation Employee Savings Plan Voting Instructions When casting your vote,
you are directing the trustee of the Wyndham Worldwide Corporation Employee
Savings Plan to vote the Wyndham Worldwide Corporation shares credited to the
account under the Plan as of the Record Date of March 19, 2015, in accordance
with your instructions and in accordance with the judgment of the trustee
upon other business as may properly come before the meeting and any
adjournments or postponements thereof. In addition, you are also affecting
the way the trustee will vote shares held in the Plan as of the Record Date
of March 19, 2015 that have not been voted by other participants. The trustee
will vote these shares in the same proportion as those shares for which
timely voting instructions are received. This proxy will be voted as directed
by signature on the reverse side, or if no direction is indicated, will be
voted in accordance with the recommendation of the Board of Directors
specified on the reverse. Continued and to be signed on reverse side
|
Wyndham Destinations (NYSE:WYND)
Historical Stock Chart
From Apr 2024 to May 2024
Wyndham Destinations (NYSE:WYND)
Historical Stock Chart
From May 2023 to May 2024