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
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Filed by a Party other than the Registrant
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Check the appropriate box:
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-
6(e)(2)
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material Pursuant to §240.14a-12
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Jos. A. Bank Clothiers, Inc.
(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):
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No fee required.
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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(1)
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Title of each class of securities to which transaction applies:
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Aggregate number of securities to which transaction applies:
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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):
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(4)
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Proposed maximum aggregate value of transaction:
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Total fee paid:
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Fee paid previously with preliminary materials.
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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.
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(1)
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Amount Previously Paid:
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Form, Schedule or Registration Statement No.:
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Filing Party:
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Date Filed:
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JOS. A.
BANK CLOTHIERS, INC.
500 Hanover Pike
Hampstead, Maryland 21074
Dear Stockholder:
You are cordially invited to attend the 2011 Annual Meeting of
Stockholders of Jos. A. Bank Clothiers, Inc., which will be held
at the Companys corporate offices, 500 Hanover Pike,
Hampstead, Maryland, 21074 commencing at 10:00 a.m., local
time, on Friday, June 17, 2011.
The following pages contain the formal notice of the Annual
Meeting and the related Proxy Statement. The Companys
Annual Report on
Form 10-K
for the fiscal year ended January 29, 2011 is enclosed as a
separate document with these materials.
The matters to be considered and voted on at the Annual Meeting
are set forth in the Proxy Statement. You are encouraged to
carefully review the Proxy Statement and attend the Annual
Meeting in person. Whether or not you plan to attend the Annual
Meeting, I hope you will vote as soon as possible by promptly
signing, dating and returning the enclosed proxy or voting
instruction card in the accompanying reply envelope. If you
attend the Annual Meeting and wish to change your vote, you may
be able to do so by voting in person at the Annual Meeting.
I look forward to meeting you on June 17th and
discussing with you the business of your company.
Sincerely,
R. Neal Black,
President and Chief Executive Officer
May 13, 2011
NOTICE OF
ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD JUNE 17, 2011
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Time and Date
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10:00 a.m., local time, on June 17, 2011
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Place
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Our corporate offices, 500 Hanover Pike, Hampstead, Maryland
21074
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Items of Business
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(1) To elect two directors for terms expiring at our 2014
Annual Meeting of Stockholders;
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(2) To ratify the appointment of Deloitte &
Touche LLP, our registered public accounting firm, for the
fiscal year ending January 28, 2012;
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(3) To hold an advisory vote on the compensation of our
named executive officers (Say on Pay);
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(4) To hold an advisory vote to determine the frequency of
future advisory votes on the compensation of our named executive
officers (Say When on Pay); and
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(5) To consider such other business as may properly come
before the Annual Meeting.
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Adjournments and Postponements
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Any action on the items of business described above may be
considered at the Annual Meeting at the time and on the date
specified above or at any time and date to which the Annual
Meeting may be properly adjourned or postponed.
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Record Date
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The Record Date for the Annual Meeting is April 29, 2011.
You are entitled to vote only if you were a Jos. A. Bank
stockholder as of the close of business on the Record Date.
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Meeting Admission
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You are entitled to attend the Annual Meeting only if you were a
Jos. A. Bank stockholder as of the close of business on the
Record Date or hold a valid proxy for the Annual Meeting. You
should be prepared to present photo identification for
admittance, in addition to the documentation described below, if
applicable.
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If you hold your shares through a broker, trustee or other
nominee, your name is not registered directly with our stock
transfer agent. In such case, you are known as a beneficial
owner that holds shares in street name, rather than a
stockholder of record. If you are not a stockholder of record,
you should be prepared to provide proof of stock ownership as of
the Record Date, such as your most recent account statement, a
copy of the voting instruction card provided by your broker,
trustee or other nominee, or other similar evidence of ownership.
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Voting
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Your vote is very important. Whether or not you plan to
attend the Annual Meeting, we encourage you to read this Proxy
Statement and submit your proxy or voting instructions as soon
as possible, but in no event later than 11:59 p.m. (Eastern
Time) on June 16, 2011, at which time proxy voting will
close. You may submit your proxy or voting instructions for the
Annual Meeting by completing, signing, dating and returning your
proxy or voting instruction card in the pre-addressed envelope
provided. For specific instructions on how to vote your shares,
please refer to the Questions and Answers section
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beginning on page 1 of the Proxy Statement and to the
instructions on the proxy or voting instruction card.
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By order of the Board of Directors,
Charles D. Frazer, Secretary
May 13, 2011
Important
Notice Regarding the Availability of Proxy Materials for the
2011
Annual Meeting of Stockholders to Be Held on June 17,
2011.
The Proxy
Statement and Annual Report on
Form 10-K
are available at
https://materials.proxyvote.com/480838.
JOS. A.
BANK CLOTHIERS, INC.
PROXY STATEMENT TABLE OF CONTENTS
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JOS. A.
BANK CLOTHIERS, INC.
PROXY
STATEMENT FOR THE
ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON JUNE 17, 2011
QUESTIONS
AND ANSWERS ABOUT THE PROXY MATERIALS
AND THE ANNUAL MEETING
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Q:
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Why am I receiving
these materials?
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A:
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The Board of Directors (the Board) of Jos. A. Bank
Clothiers, Inc., a Delaware corporation (Jos. A.
Bank, the Company, our or
we), is providing these proxy materials to you in
connection with the Boards solicitation of proxies for our
2011 Annual Meeting of Stockholders (the Annual
Meeting), which will take place on June 17, 2011. As
a stockholder of record, you are invited to attend the Annual
Meeting and are entitled and requested to vote on the items of
business described in this Proxy Statement. This Proxy Statement
and accompanying proxy card (or voting instruction card) are
being mailed on or about May 13, 2011 to all stockholders
entitled to vote at the Annual Meeting.
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Q:
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What information is
contained in this Proxy Statement?
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A:
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This Proxy Statement contains information regarding our
corporate governance practices, our board of directors, our
named executive officers, the compensation of our named
executive offices, the proposals to be voted on at the Annual
Meeting and certain other required information.
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Q:
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How may I obtain Jos.
A. Banks Annual Report on
Form 10-K
for the year ended January 29, 2011?
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A:
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We have enclosed with this Proxy Statement a copy of our Annual
Report on
Form 10-K
for the fiscal year ended January 29, 2011 (Fiscal
2010). Our Annual Report on
Form 10-K
can also be accessed through our website at
www.josbank.com
(click Company Information,
Investor Relations and SEC Filings). We
filed our Annual Report on
Form 10-K
with the Securities and Exchange Commission (the
SEC) on March 30, 2011.
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Q:
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Can I view these proxy
materials over the Internet?
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A:
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Yes. The Notice of Meeting, this Proxy Statement and
accompanying proxy card and our Annual Report on
Form 10-K
are available at
https://materials.proxyvote.com/480838.
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Q:
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What items of business
will be voted on at the Annual Meeting?
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A:
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The items of business scheduled to be voted on at the Annual
Meeting are:
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The election of two directors for terms expiring at
our 2014 Annual Meeting of Stockholders;
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The ratification of the appointment of
Deloitte & Touche LLP (Deloitte) as our
registered public accounting firm for the fiscal year ending
January 28, 2012 (Fiscal 2011);
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The holding of an advisory vote on the compensation
of our named executive officers (Say on Pay); and
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The holding of an advisory vote to determine the
frequency of future advisory votes on the compensation of our
named executive officers (Say When on Pay).
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We will also consider other business that properly comes before
the Annual Meeting.
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Q:
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How does the Board
recommend that I vote?
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A:
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Our Board recommends that you vote your shares FOR
the nominees to the Board; FOR the ratification of
the appointment of Deloitte as our registered public accounting
firm for Fiscal 2011; FOR the approval of the
compensation of our named executive officers (Say on
Pay); and 1 YEAR for the frequency of future
executive compensation votes (Say When on Pay).
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Q:
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What shares may I
vote?
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A:
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Each share of our common stock issued and outstanding as of the
close of business on April 29, 2011 (the Record
Date) is entitled to one vote on each of the matters to be
voted upon at the Annual Meeting.
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You may vote all shares owned by you as of the Record Date,
including (a) shares held directly in your name as the
stockholder of record and (b) shares held for you as the
beneficial owner through a broker, trustee or other nominee
(collectively, a Broker).
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We had 27,626,304 shares of common stock issued and
outstanding on the Record Date.
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Q:
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What is the difference
between being a stockholder of record and being the beneficial
owner of shares held in street name?
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A:
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A stockholder of record owns shares which are registered in his
or her own name. A beneficial owner owns shares which are
registered in street name through a third party, such as a
Broker. Most of our stockholders own their shares beneficially
in street name through Brokers rather than directly in their own
names. As summarized below, there are some distinctions between
stockholders of record and beneficial owners.
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Stockholder
of Record
You are the stockholder of record of any of your shares
registered directly in your name with our transfer agent,
Continental Stock Transfer & Trust Company. With
respect to such shares, these proxy materials are being sent to
you by Jos. A. Bank. As the stockholder of record, you have the
right to grant your voting proxy directly to our designees, R.
Neal Black (our President and Chief Executive Officer) and
Charles D. Frazer (our General Counsel and corporate Secretary),
or to any other person you wish to designate, or to vote in
person at the Annual Meeting. We have enclosed a proxy card for
you to grant your voting proxy to Messrs. Black and Frazer.
Shares Beneficially
Held in Street Name
You are the beneficial owner of any of your shares registered in
street name. With respect to such shares registered through a
Broker, these proxy materials, together with a voting
instruction card, are being forwarded to you by your Broker. As
the beneficial owner, you have the right to direct your Broker
how to vote. You may use the voting instruction card provided by
your Broker for this purpose. Even if you have directed your
Broker how to vote, you may also attend the Annual Meeting.
However, you may not vote your shares in person at the Annual
Meeting unless you obtain a legal proxy or other
evidence from your Broker giving you the right to vote the
shares at the Annual Meeting.
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Q:
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Who is entitled to
attend the Annual Meeting and what are the admission
procedures?
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A:
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You are entitled to attend the Annual Meeting only if you were a
Jos. A. Bank stockholder as of the close of business on the
Record Date or if you hold a valid proxy for the Annual Meeting.
A list of stockholders eligible to vote at the Annual Meeting
will be available for inspection at the Annual Meeting and for a
period of ten days prior to the Annual Meeting during regular
business hours at our principal executive offices, which are
located at 500 Hanover Pike, Hampstead, Maryland 21074. To
obtain directions to the Annual Meeting, please contact our
Investor Relations Department at
(410) 239-5900.
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If you are a beneficial holder, you will need to provide proof
of beneficial ownership as of the Record Date, such as a
brokerage account statement showing that you owned Jos. A. Bank
stock as of the Record
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Date or the voting instruction card provided by your Broker. The
Annual Meeting will begin promptly at 10:00 a.m., local
time. You should be prepared to present photo identification for
admittance. Check-in will begin one-half hour prior to the
meeting. Please allow ample time for the admission procedures.
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Q:
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May I vote my shares
in person at the Annual Meeting?
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A:
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If you are a stockholder of record, you may vote your shares in
person at the Annual Meeting or through a proxy. If you decide
to vote your shares in person, you do not need to present your
share certificate(s) at the Annual Meeting; your name will be on
the list of stockholders eligible to vote. If you hold your
shares beneficially in street name, you may vote your shares in
person at the Annual Meeting only if you obtain a legal proxy or
other evidence from your Broker giving you the right to vote the
shares.
Even if you plan to attend the Annual Meeting, we
recommend that you also submit your proxy or voting instructions
as described below so that your vote will be counted if you
later decide not to attend the Annual Meeting.
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Q:
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How can I vote my
shares without attending the Annual Meeting?
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A:
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Whether you hold shares directly as the stockholder of record or
beneficially in street name, you may direct how your shares are
voted without attending the Annual Meeting. If you are a
stockholder of record, you may vote by submitting a proxy. If
you hold shares beneficially in street name, you may vote by
submitting voting instructions to your Broker. For directions on
how to vote, please refer to the instructions below and those
included on your proxy card or, for shares held beneficially in
street name, the voting instruction card provided by your Broker.
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Stockholders of record may submit proxies by completing, signing
and dating their proxy cards and mailing them in the
accompanying pre-addressed envelopes. Stockholders who hold
shares beneficially in street name may vote by completing,
signing and dating the voting instruction cards provided and
mailing them in the accompanying pre-addressed envelopes. The
proxy card also includes directions as to how you may submit
your vote through the Internet and by telephone. The voting
instruction card may also include directions for alternative
methods of submitting your vote. Except for shares voted in
person at the Annual Meeting, voting will close at
11:59 p.m. (Eastern Time) on June 16, 2011. To be
included in the vote count, your votes must be received prior to
that time. We encourage you to vote early. If you choose to vote
by mail, please allow sufficient time for your proxy or voting
instruction card to reach our vote tabulator prior to the
deadline.
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Q:
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Can I change my
vote?
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A:
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Yes. You may change your vote at any time prior to the vote at
the Annual Meeting. If you are a stockholder of record, you may
change your vote by granting a new proxy bearing a later date
(which automatically revokes the earlier proxy), by providing a
written notice of revocation prior to your shares being voted or
by attending the Annual Meeting and voting in person. Any notice
of revocation should be addressed to our Secretary, Charles D.
Frazer, Esquire, 500 Hanover Pike, Hampstead, Maryland 21074.
For shares you hold beneficially in street name, you may change
your vote by submitting new voting instructions to your Broker
or, if you have obtained a legal proxy or other evidence from
your Broker giving you the right to vote your shares, by
attending the Annual Meeting and voting in person. Without
taking one of the actions described above, attendance at the
Annual Meeting will not cause your previously granted proxy or
voting instructions to be revoked.
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Q:
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Who can help answer my
questions?
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A:
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If you have any questions about the Annual Meeting or how to
vote or revoke your proxy or if you need additional copies of
this Proxy Statement or voting materials, please contact our
Investor Relations Department at
(410) 239-5900.
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Q:
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Is my vote
confidential?
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A:
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Proxy instructions, ballots and voting tabulations that identify
individual stockholders are handled in a manner that protects
your voting privacy. Your vote will not be disclosed either
within Jos. A. Bank or to
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third parties, except: (a) as necessary to meet applicable
legal requirements; (b) to allow for the tabulation of
votes and certification of the vote; and (c) to facilitate
a successful proxy solicitation.
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Q:
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What is the quorum
required to conduct business at the Annual Meeting?
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A:
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In order to hold and transact business at the Annual Meeting,
holders of a majority of outstanding shares of Jos. A. Bank
common stock entitled to vote must be present in person or
represented by proxy. If you hold shares beneficially in street
name and do not provide your Broker with voting instructions,
your shares may constitute broker non-votes.
Generally, broker non-votes occur when a Broker returns a
properly executed proxy but fails to vote on one or more matters
because the Broker lacks the authority to do so. Broker
non-votes will be counted toward a quorum, but will not be
counted in determining whether the items of business to which
they apply have been approved.
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Q:
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How are votes
counted?
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A:
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In the election of the directors, you may vote FOR
both of the nominees or you may WITHHOLD AUTHORITY
with respect to either or both of the nominees.
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For the ratification the appointment of Deloitte as our
registered public accounting firm, you may vote FOR,
AGAINST or ABSTAIN.
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For the advisory vote on the compensation of our named executive
officers (Say on Pay), you may vote FOR,
AGAINST or ABSTAIN.
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For the advisory vote to determine the frequency of future
advisory votes on the compensation of our named executive
officers (Say When on Pay), you may vote 1
YEAR, 2 YEARS, 3 YEARS or you may
ABSTAIN from voting.
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Abstentions will be counted toward a quorum, but will not be
counted in determining whether the items of business to which
they apply have been approved.
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If you provide specific instructions with regard to certain
items, your shares will be voted as you instruct on such items.
If you sign your proxy card or voting instruction card without
giving specific instructions, your shares will be voted in
accordance with the recommendations of the Board (in the case of
this Annual Meeting: FOR our nominees to the Board;
FOR the ratification of the appointment of Deloitte
as our registered public accounting firm; FOR the
approval of the compensation of our named executive officers
(Say on Pay); and 1 YEAR for the
frequency of future executive compensation votes (Say When
on Pay)). With regard to any other matters that properly
come before the Annual Meeting, your shares will be voted in the
discretion of the proxy holders.
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Q:
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What is the voting
requirement to approve each of the proposals to be voted on at
the Annual Meeting?
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A:
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On and effective February 24, 2011, the Board amended and
restated our bylaws to provide that nominees for directors in
uncontested elections must be elected by majority vote. As of
the Record Date, the number of nominees for election at the
Annual Meeting is equal to the number of directors to be
elected. Therefore, the election at the Annual Meeting will be
uncontested and a nominee for director will be elected only if
such nominee receives the affirmative vote of a majority of the
total votes cast for and against such nominee at the Annual
Meeting. A properly executed proxy withholding authority with
respect to the election of a director nominee will not be voted
with respect to that nominee, although it will be counted for
purposes of determining whether there is a quorum.
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In the proposal to ratify the selection of Deloitte as our
registered public accounting firm for Fiscal 2011, the
affirmative vote of a majority of the votes cast at the Annual
Meeting, either in person or by proxy, and entitled to vote is
required.
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In the Say on Pay proposal, the choice
(For, Against or Abstain)
receiving the highest number of votes at the Annual Meeting,
either in person or by proxy, will be deemed the advice of our
shareholders.
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In the Say When on Pay proposal, the frequency
receiving the highest number of votes at the Annual Meeting,
either in person or by proxy, will be deemed to be the advice of
our shareholders.
|
|
|
|
Abstentions and broker non-votes will have no effect on the
outcome of any of the four proposals presented at the Annual
Meeting.
|
|
Q:
|
|
What happens if
additional matters are presented at the Annual
Meeting?
|
|
A:
|
|
As to matters which are set forth in this Proxy Statement, the
persons named as proxy holders, R. Neal Black and Charles D.
Frazer, will vote as instructed in your proxy or voting
instruction card. We are not aware of any business to be acted
upon at the Annual Meeting other than the four items of business
described in this Proxy Statement. If you grant a proxy to
Messrs. Black and Frazer, they will have the discretion to
vote your shares on any additional matters properly presented
for a vote at the Annual Meeting. If for any unforeseen reason
either of our director nominees is unavailable to stand for
election, the proxy holders will vote your proxy for such other
candidate(s) as may be nominated by our Nominating and Corporate
Governance Committee.
|
|
Q:
|
|
Who will serve as
inspector of elections?
|
|
A:
|
|
The inspector of elections will be a representative of Jos. A.
Bank.
|
|
Q:
|
|
What should I do if I
receive more than one set of voting materials?
|
|
A:
|
|
You may not vote more shares than you own. However, you may
receive more than one set of voting materials, including
multiple copies of this Proxy Statement and multiple proxy cards
or voting instruction cards. For example, you may receive a
separate voting instruction card for each brokerage account in
which you hold shares. If you are a stockholder of record and
your shares are registered in more than one name, you will
receive more than one proxy card. Please complete, sign, date
and return each proxy card and voting instruction card that you
receive.
|
|
Q:
|
|
How may I obtain a
separate set of voting materials?
|
|
A:
|
|
Pursuant to an SEC approved procedure called
householding, multiple stockholders who share the
same address will receive a single proxy statement and annual
report at that address unless they provide contrary
instructions. Any such stockholder who wishes to receive a
separate proxy statement and/or annual report now or in the
future may write or call the Company at our Investor Relations
Department, 500 Hanover Pike, Hampstead, Maryland 21074,
telephone:
(410) 239-5900.
You may also request a separate copy of this years Proxy
Statement and/or Annual Report on
Form 10-K
by visiting our website,
www.josbank.com
(click
Company Information, Investor Relations
and Information Request). The Company will promptly,
upon written or oral request, deliver a separate copy of the
Proxy Statement and/or Annual Report on
Form 10-K
to any stockholder at a shared address to which only a single
copy was delivered. Similarly, stockholders sharing the same
address who have received multiple copies of this Proxy
Statement or our Annual Report on
Form 10-K
may contact the Company at the above address and phone number to
request delivery of a single copy in the future. Stockholders
who hold shares beneficially in street name may contact their
Broker to request information about householding.
|
|
Q:
|
|
Who will bear the cost
of soliciting votes for the Annual Meeting?
|
|
A:
|
|
Jos. A. Bank is making this solicitation and will pay the entire
cost of preparing, printing, assembling, mailing and
distributing these proxy materials and soliciting votes. Upon
request, we will also reimburse brokerage houses and other
custodians, nominees and fiduciaries for forwarding proxy and
solicitation materials to stockholders. To assist with the
solicitation of proxies or votes, the Company has retained
Georgeson Inc. for an estimated fee of $12,500 plus
out-of-pocket
expenses. In addition, the solicitation of proxies or votes may
be made by our directors, officers and employees. These
individuals will not receive any additional compensation for any
solicitation activities. Solicitations may be in person, by
telephone or by any other means of communication.
|
5
|
|
|
Q:
|
|
Where can I find the
voting results of the Annual Meeting?
|
|
A:
|
|
We intend to announce preliminary voting results at the Annual
Meeting and will disclose results on a
Form 8-K
that will be filed not more than four business days following
the Annual Meeting.
|
|
Q:
|
|
What is the deadline
for submitting proposals for inclusion in Jos. A. Banks
proxy statement for the Companys 2012 Annual Meeting of
Stockholders?
|
|
A:
|
|
Pursuant to
Rule 14a-8
under the Securities Exchange Act of 1934, as amended (the
Exchange Act), stockholders may present proper
proposals for inclusion in our Proxy Statement relating to, and
for consideration at, the 2012 Annual Meeting of Stockholders by
submitting their proposals to us in a timely manner. Such
proposals will be so included if received at our principal
executive offices not later than January 14, 2012 and if
they otherwise comply with the requirements of
Rule 14a-8.
|
|
Q:
|
|
What is the deadline
to propose actions for consideration at the Companys 2012
Annual Meeting of Stockholders or to nominate individuals to
serve as directors?
|
|
A:
|
|
You may submit for consideration at the Companys 2012
Annual Meeting proposals, including director nominations, that
are not intended to be included in the Companys proxy
statement by complying with the procedures specified in our
Amended and Restated Bylaws. In order for a stockholder proposal
or director nomination to be considered at the Companys
2012 Annual Meeting, such proposal or nomination must be
delivered to or mailed and received at the Companys
principal executive offices no later than February 18,
2012. In the event that the date of the Annual Meeting is
advanced by more than 60 days or delayed by more than
90 days from the anniversary of the previous Annual
Meeting, notice by the stockholder to be timely must be received
not earlier than the one hundred twentieth day prior to such
Annual Meeting and not later than the close of business on the
later of (a) the sixtieth day prior to such Annual Meeting
or (b) the tenth day following the date on which notice of
the date of the Annual Meeting was mailed or public disclosure
thereof was made, whichever first occurs. Any stockholder
considering submitting a director nomination or proposal for
action at the Companys 2012 Annual Meeting is directed to
the Companys Amended and Restated Bylaws, which contain
additional requirements as to submission of nominations for
directors or proposals for stockholder action. You may contact
the Secretary of Jos. A. Bank at our principal executive offices
for a copy of the relevant provisions of our Amended and
Restated Bylaws regarding the requirements for making
stockholder proposals and nominating director candidates.
|
OVERVIEW
OF OUR CORPORATE GOVERNANCE PRACTICES
The Company has adopted a Statement of Corporate Governance
Standards, which may be found on our website at
www.josbank.com
(click Company Information,
Investor Relations and Governance). We
believe that our corporate governance practices are appropriate
and in the best interest of our Company and our stockholders.
Some of the key aspects of our corporate governance practices
are as follows:
ELECTION
OF DIRECTORS
On and effective February 24, 2011, the Board amended and
restated our bylaws to provide that in uncontested elections
(i.e., elections at which the number of nominees is equal to the
number of board seats being filled), nominees for directors must
be elected by a majority vote. Conversely, in a contested
election, nominees for directors may be elected by a plurality
vote. In an uncontested election, a nominee for director will be
elected only if such nominee receives the affirmative vote of a
majority of the total votes cast for and against such nominee.
The election of directors to be held at the 2011 Annual Meeting
is an uncontested election. In connection with the bylaw
amendments, the Board also amended the Companys Statement
of Corporate Governance Standards to provide that, if an
incumbent director does not receive the votes required in the
Companys Amended and Restated Bylaws, the director must
promptly tender his or her resignation for consideration by the
Board. The Board may accept or reject such resignation. A
current copy of the Companys Statement of Corporate
Governance Standards is available on our website at
www.josbank.com
(click Company Information,
Investor Relations and Governance).
6
INDEPENDENCE
OF DIRECTORS
Five out of seven of our current directors are independent
directors as defined in the Nasdaq Stock Market Rules (the
Nasdaq Rules). Our two non-independent directors,
Robert N. Wildrick and R. Neal Black, bring special insight to
the Board as a result of their service as the Companys
former and current, respectively, Chief Executive Officer.
COMMITTEE
INDEPENDENCE
Each of the following committees of the Board is composed
entirely of independent directors: the Audit Committee; the
Compensation Committee; and the Nominating and Corporate
Governance Committee.
BOARD
LEADERSHIP STRUCTURE
We maintain a Board leadership structure that separates the
positions of Chairman of the Board, Lead Independent Director
and Chief Executive Officer. By having separate individuals
serve in these three distinct capacities, we believe that we
provide for additional oversight by the Board and enable our
Chief Executive Officer to focus his time and attention on the
Companys operations. Our current Chairman of the Board,
Robert N. Wildrick, has been a director since 1994 and served as
our Chief Executive Officer from November 1999 through December
2008. Our current Lead Independent Director, Andrew A. Giordano,
has been a director since 1994, served as our interim Chief
Executive Officer from May 1999 to October 1999 and has served
as Lead Independent Director since November 1999. In addition,
Mr. Giordano is chairman of our Nominating and Corporate
Governance Committee and a member of our Audit Committee. These
experiences enhance Mr. Wildricks and
Mr. Giordanos ability (and therefore the Boards
ability) to oversee the Chief Executive Officer in his
management of our Company. The Board as a whole engages in risk
oversight as part of its functions. We believe that our Board
leadership structure enables the Board to manage risk oversight
effectively.
BOARD
EVALUATIONS
Our Nominating and Corporate Governance Committee coordinates
annual evaluations of our Board, its committees and individual
members.
DIRECTOR
AND EXECUTIVE OFFICER STOCK OWNERSHIP GUIDELINES
All of our directors and executive officers own shares of our
common stock. We believe that the directors and executive
officers of the Company should own and hold our common stock or
other qualifying shares to further align their interests and
actions with the interests of the Companys stockholders.
The Board has adopted stock ownership guidelines applicable to
all of our directors, our Chief Executive Officer and our
Executive Vice Presidents. Pursuant to the guidelines, each of
our directors are required to accumulate and hold 7,500
qualified shares of equity in the Company; our Chief Executive
Officer is required to accumulate and hold 75,000 qualified
shares of equity in the Company; and each of our Executive Vice
Presidents is required to accumulate and hold 15,000 qualified
shares of equity in the Company. The guidelines further provide
that each director is expected to be in compliance with the
targeted share holdings by June 2013 and each executive officer
is expected to be in compliance with the targeted share holdings
by June 2015. The Board anticipates that the guidelines will be
timely satisfied by each director and executive officer. The
stock ownership guidelines may be found on our website at
www.josbank.com
(click Company Information,
Investor Relations and Governance).
AUDIT
For at least each of the three fiscal years for which we provide
audited financial statements in our Annual Report on
Form 10-K
for Fiscal 2010: (a) Deloitte, our independent registered
public accounting firm, has expressed an unqualified opinion on
the Companys consolidated financial statements;
(b) we have not restated any of our consolidated financial
statements; (c) all of our financial disclosure filings
have been timely; (d) no
7
securities regulator has taken enforcement action against us;
and (e) we have not had any material weaknesses in our
internal controls.
INFORMATION
REGARDING OUR BOARD OF DIRECTORS
The following table sets forth our current directors, their ages
and the positions they hold:
|
|
|
|
|
|
|
Name
|
|
Age
|
|
Position
|
|
James H. Ferstl
|
|
|
68
|
|
|
Director
|
Andrew A. Giordano
|
|
|
78
|
|
|
Director, Chairman Emeritus, Lead Independent Director and
Chairman of the Nominating and Corporate Governance Committee
|
William E. Herron
|
|
|
65
|
|
|
Director and Chairman of the Audit Committee
|
Henry Homes, III
|
|
|
63
|
|
|
Director
|
Sidney H. Ritman
|
|
|
78
|
|
|
Director and Chairman of the Compensation Committee
|
Robert N. Wildrick
|
|
|
66
|
|
|
Director and Chairman of the Board
|
R. Neal Black
|
|
|
56
|
|
|
Director, Chief Executive Officer and President
|
BOARD
INDEPENDENCE
The Board has affirmatively determined that each of
Messrs. Ferstl, Giordano, Herron, Homes and Ritman
(individually, an Independent Director and
collectively, the Independent Directors) is an
independent director as defined in the Nasdaq Rules.
In making this determination, the Board found that none of the
Independent Directors has a disqualifying relationship that
would prohibit him from being considered independent
under the Nasdaq Rules and that none of the Independent
Directors has any relationship that would interfere with the
exercise of independent judgment in carrying out the
responsibilities of a director.
COMMITTEES
OF THE BOARD OF DIRECTORS
The Board has a standing Audit Committee, Compensation
Committee, Executive Committee and Nominating and Corporate
Governance Committee. The members and primary responsibilities
of those committees are as follows:
Audit
Committee
The Audit Committee, comprised of Messrs. Giordano, Herron
(Chairman) and Ritman, assists the Board with the oversight of:
(a) the integrity of our financial statements; (b) the
qualifications and independence of our registered public
accounting firm; (c) the performance of our registered
public accounting firm; (d) the adequacy of our systems of
internal accounting and financial controls; and (e) our
compliance with ethics policies and legal and regulatory
requirements. As required by applicable law, rules or
regulations and otherwise to the extent it deems necessary or
appropriate, the Audit Committee also reviews and approves all
related party transactions and considers information regarding
potential relationships between the Company and the directors,
executive officers or their immediate family members.
The Audit Committee is directly responsible for the appointment,
compensation and oversight of the work of our registered public
accounting firm for the purpose of preparing or issuing an audit
report or related work. Such responsibility includes the
resolution of disagreements between management and our
registered public accounting firm regarding financial reporting.
There were no such disagreements in Fiscal 2010. Our registered
public accounting firm reports directly to the Audit Committee.
The Audit Committee has the authority, to the extent it deems
necessary or appropriate to carry out its duties, to retain
independent legal, accounting or other advisors. The Company
covers all payments to these independent advisors. The Audit
Committee has established procedures for the receipt, retention
and treatment of complaints received by the Company regarding
accounting, internal accounting controls or auditing matters,
and the confidential, anonymous submission by employees of
concerns regarding questionable accounting or auditing matters.
8
The Board has determined that Mr. Herron is an audit
committee financial expert, as such term is defined in
Item 407(d)(5)(ii) of
Regulation S-K.
All members of the Audit Committee are independent directors as
defined in the Nasdaq Rules and
Rule 10A-3
of the Exchange Act.
The Audit Committee operates pursuant to a charter duly adopted
by the Board. A current copy of the charter is available on our
website at
www.josbank.com
(click Company
Information, Investor Relations and
Governance).
Compensation
Committee
The Compensation Committee, comprised of Messrs. Herron,
Homes and Ritman (Chairman), determines the compensation of the
Chief Executive Officer and other executive officers of the
Company in compliance with the Nasdaq Rules and may advise the
Board, or take other action, on other matters of compensation.
The Board has determined that all members of the Compensation
Committee are independent directors as defined in the Nasdaq
Rules. The Compensation Committee operates pursuant to a charter
duly adopted by the Board. A current copy of the charter is
available on our website at
www.josbank.com
(click
Company Information, Investor Relations
and Governance). The Compensation Committee may
delegate any aspect of its responsibility and authority to
subcommittees or individual Compensation Committee members.
Executive
Committee
The Executive Committee, comprised of Messrs. Giordano,
Ritman and Wildrick (Chairman), is authorized to exercise all of
the powers and authority of the Board at times when the Board is
not meeting; provided, however, that the Executive Committee is
not permitted to exercise such powers as are reserved for the
Board under Delaware law or otherwise restricted under the terms
of the Executive Committees charter duly adopted by the
Board. A current copy of the charter is available on our website
at
www.josbank.com
(click Company
Information, Investor Relations and
Governance).
Nominating
and Corporate Governance Committee
The Nominating and Corporate Governance Committee, comprised of
Messrs. Ferstl, Giordano (Chairman) and Ritman:
(a) proposes the slate of candidates for election as
directors at each Annual Meeting of Stockholders;
(b) considers and reviews the qualifications of any
individual nominated for election to the Board by stockholders;
(c) in the event of any vacancies which may arise on the
Board, identifies and recommends to the Board candidates who are
qualified to serve on the Board; (d) recommends to the
Board the assignment of directors to serve on committees of the
Board; and (e) develops and recommends to the Board (and
reviews from time to time) corporate governance principles for
the Company as the Nominating and Corporate Governance Committee
may deem necessary or advisable. If there should occur an
uncontested election for directors at which a director-nominee
is not elected by majority vote, the director-nominee shall
tender his or her resignation to the Board. The Nominating and
Corporate Governance Committee shall thereupon consider such
resignation and shall recommend to the Board whether to accept
or reject the resignation. The Board has determined that all
members of the Nominating and Corporate Governance Committee are
independent directors as defined in the Nasdaq Rules. The
Nominating and Corporate Governance Committee operates pursuant
to a charter duly adopted by the Board. A current copy of the
charter is available on our website at
www.josbank.com
(click Company Information, Investor
Relations and Governance).
DIRECTOR
ATTENDANCE AT BOARD AND COMMITTEE MEETINGS
During Fiscal 2010, the Board held four meetings; the Audit
Committee held four meetings; the Compensation Committee held
three meetings; the Executive Committee held two meetings; and
the Nominating and Corporate Governance Committee held two
meetings. During Fiscal 2010, each director attended or
participated in 75% or more of (a) the meetings of the
Board and (b) the meetings of all committees of the Board
on which such director served.
9
DIRECTOR
ATTENDANCE AT ANNUAL MEETING; STOCKHOLDER COMMUNICATION WITH THE
BOARD OF DIRECTORS
It is the policy of the Board that all directors are expected to
attend the Companys annual meetings of stockholders. All
of our directors were present at the 2010 Annual Meeting of
Stockholders held on June 17, 2010. Our Chairman of the
Board will be available to respond to appropriate questions and
comments from stockholders immediately following the 2011 Annual
Meeting. Stockholders may also communicate with the Board by
sending a letter to Jos. A. Bank Clothiers, Inc. Board of
Directors
c/o General
Counsel, 500 Hanover Pike, Hampstead, Maryland 21074. The
General Counsel will receive the correspondence and forward it
to the Chairman of the Board, the Chairman of the Audit
Committee or to any individual director or directors to whom the
communication is directed, as appropriate. Notwithstanding the
above, the General Counsel has the authority to discard or
disregard any communication which is unduly hostile,
threatening, illegal or otherwise inappropriate or to take any
other appropriate actions with respect to such communications.
CONSIDERATION
OF DIRECTOR NOMINEES
Director
Qualifications
The Board does not believe that it is in our best interests to
establish rigid criteria for the selection of prospective
director nominees. Rather, the Board recognizes that the
challenges and needs we face will change over time and,
accordingly, believes that the selection of prospective director
nominees should be based on skill sets relevant to the issues we
face or are likely to face at the time of nomination. At the
same time, the Board strongly believes that we will benefit from
a diversity of background and experience on the Board. The Board
therefore seeks prospective director nominees who, in addition
to general management experience and business knowledge, possess
an expertise in one or more areas critical to the Company, such
as: retail; finance; international business; investment banking;
corporate governance; financial control systems; risk
assessment; logistics; and investor relations.
In addition, there are certain general attributes that the Board
believes all prospective director nominees must possess in order
to be recommended by the Nominating and Corporate Governance
Committee, including:
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|
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a commitment to ethics and integrity;
|
|
|
|
a commitment to personal and organizational accountability;
|
|
|
|
a history of achievement that reflects superior standards for
themselves and others; and
|
|
|
|
an ability to take tough positions while, at the same time,
being respectful of the opinions of others and working
collaboratively.
|
In evaluating any prospective director, the Board and the
Nominating and Corporate Governance Committee will also take
into consideration whether such prospective director, if elected
to the Board, would qualify as an independent director in
accordance with the Nasdaq Rules.
Identifying
and Evaluating Prospective Director Nominees
The Nominating and Corporate Governance Committee uses a variety
of methods for identifying nominees for director. Prospective
director nominees may come to our attention through current
directors, professional search firms, professional associations,
stockholders or other persons.
The Nominating and Corporate Governance Committee will evaluate
all prospective director nominees, including those recommended
by stockholders, in the same manner. Generally, prospective
director nominees will be evaluated at special meetings of the
Nominating and Corporate Governance Committee. The Nominating
and Corporate Governance Committee will make an initial
determination as to whether to conduct a full evaluation of the
prospective director nominee based upon various factors,
including, but not limited to: (a) the information
submitted with the nomination; (b) the Nominating and
Corporate Governance Committees own knowledge of the
prospective director nominee; (c) the current size of the
Board and any anticipated
10
vacancies or needs; and (d) whether the prospective
director nominee can satisfy any specific qualifications
established by the Nominating and Corporate Governance
Committee. The Nominating and Corporate Governance Committee may
then decide to do a comprehensive evaluation of a prospective
director nominee, which may include an interview of the
candidate.
Stockholder
Nominees
The policy of the Nominating and Corporate Governance Committee
is to consider prospective director nominations properly
submitted by a stockholder. For a description of the process for
nominating directors in accordance with our Amended and Restated
Bylaws, see What is the deadline to propose actions for
consideration at the Companys 2012 Annual Meeting of
Stockholders or to nominate individuals to serve as
directors? in the Questions and Answers
section of this Proxy Statement. No stockholder has submitted a
nominee for consideration by the Nominating and Corporate
Governance Committee in connection with the Annual Meeting.
NON-EMPLOYEE
DIRECTOR COMPENSATION
Each of our directors other than Mr. Black
(Non-Employee Directors) is entitled to compensation
for board service as set by the Compensation Committee. As an
officer of the Company, Mr. Black is not entitled to
compensation for his services as a director. Management assists
the Compensation Committee with the compensation setting process
as needed.
Each Non-Employee Director receives an annual retainer of
$40,000. Additional annual retainers are paid as follows:
Chairman of the Board-$150,000; Lead Independent
Director-$60,000; and the Chairmen of each of the Audit
Committee, Compensation Committee and Nominating and Corporate
Governance Committee-$30,000. Each Non-Employee Director also
receives attendance fees of $3,000 per Board meeting and $1,500
per meeting of the Audit, Compensation and Nominating and
Corporate Governance committees. No fees are paid for meetings
of the Executive Committee. One-half of the usual meeting
attendance fee (i.e., $1,500 and $750, respectively) is paid to
each Non-Employee Director for participation in each telephonic
Board or Committee meeting. All directors are reimbursed for
actual
out-of-pocket
expenses incurred by them in connection with attending meetings
of the Board or of a Committee.
The Jos. A. Bank Clothiers, Inc. Equity Incentive Plan (the
Equity Incentive Plan) provides for certain
automatic awards to Non-Employee Directors. Unless the
Compensation Committee determines in its discretion to make a
lesser award or no award, (a) on June 1, 2011 and each
June 1 thereafter (or the next business day thereafter if June 1
is not a business day), each person then serving as a
Non-Employee Director shall receive an annual award of 2,250
restricted stock units and (b) any person who first becomes
a Non-Employee Director after June 17, 2010, shall receive
upon his or her election to the Board an inaugural award of
1,500 restricted stock units on such date. All such restricted
stock units will vest approximately (but not less than) twelve
months following the date of grant.
11
The table below provides information concerning compensation of
the Non-Employee Directors for Fiscal 2010:
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|
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|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Pension
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Value and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonqualified
|
|
|
|
|
|
|
Fees Earned
|
|
|
|
|
|
Non-Equity
|
|
Deferred
|
|
|
|
|
|
|
or Paid in
|
|
Stock
|
|
Option
|
|
Incentive Plan
|
|
Compensation
|
|
All Other
|
|
|
|
|
Cash
(1)
|
|
Awards
(2)
|
|
Awards
|
|
Compensation
|
|
Earnings
|
|
Compensation
(3)
|
|
Total
|
Name
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
|
(e)
|
|
(f)
|
|
(g)
|
|
(h)
|
|
James H. Ferstl
|
|
|
53,500
|
|
|
|
148,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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202,450
|
|
Andrew A. Giordano
|
|
|
148,750
|
|
|
|
148,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
297,700
|
|
William E. Herron
|
|
|
91,750
|
|
|
|
148,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
240,700
|
|
Henry Homes, III
|
|
|
56,500
|
|
|
|
148,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
205,450
|
|
Sidney H. Ritman
|
|
|
91,000
|
|
|
|
148,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
239,950
|
|
Robert N. Wildrick
|
|
|
202,000
|
|
|
|
148,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
835,046
|
|
|
|
1,185,996
|
|
|
|
|
(1)
|
|
Amounts reported in column (b) represent retainers and
attendance fees as more fully detailed in the table below.
|
|
(2)
|
|
Amounts reported in column (c) represent the market value
of restricted stock units issued to the directors, based on the
closing price of the Companys common stock on the date of
grant.
|
|
(3)
|
|
The amount reported in column (g) represents fees paid to
Mr. Wildrick during Fiscal 2010 pursuant to his consulting
agreement with the Company, as more fully discussed below in the
section of this Proxy Statement titled Transactions with
Related Persons, and the cost of medical, dental, vision
and medical expense reimbursement insurance provided to
Mr. Wildrick during Fiscal 2010.
|
The table below provides detail regarding cash fees earned by or
paid to Non-Employee Directors in Fiscal 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lead
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent
|
|
Committee
|
|
|
|
|
|
|
|
|
Annual
|
|
Director
|
|
Chair
|
|
Chairman
|
|
Attendance
|
|
|
|
|
Retainer
|
|
Retainer
|
|
Retainer
|
|
Retainer
|
|
Fees
|
|
Total
|
Name
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
|
James H. Ferstl
|
|
|
40,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,500
|
|
|
|
53,500
|
|
Andrew A. Giordano
|
|
|
40,000
|
|
|
|
60,000
|
|
|
|
30,000
|
|
|
|
|
|
|
|
18,750
|
|
|
|
148,750
|
|
William E. Herron
|
|
|
40,000
|
|
|
|
|
|
|
|
30,000
|
|
|
|
|
|
|
|
21,750
|
|
|
|
91,750
|
|
Henry Homes, III
|
|
|
40,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,500
|
|
|
|
56,500
|
|
Sidney H. Ritman
|
|
|
40,000
|
|
|
|
|
|
|
|
30,000
|
|
|
|
|
|
|
|
21,000
|
|
|
|
91,000
|
(1)
|
Robert N. Wildrick
|
|
|
40,000
|
|
|
|
|
|
|
|
|
|
|
|
150,000
|
|
|
|
12,000
|
|
|
|
202,000
|
|
|
|
|
(1)
|
|
In Fiscal 2010, Mr. Ritman deferred receipt of $84,250 of
cash compensation for Board service and was credited with 2,072
stock units in the Jos. A. Bank Clothiers, Inc. 2010 Deferred
Compensation Plan (the 2010 Deferred Compensation
Plan). Each stock unit is a unit of value equivalent to
the value of a share of our common stock.
|
12
INFORMATION
REGARDING OUR NAMED EXECUTIVE OFFICERS
Generally, a named executive officer is a companys chief
executive officer, its chief financial officer and its three
other most highly compensated executive officers. Our named
executive officers are: R. Neal Black, our Chief Executive
Officer; David E. Ullman, our Chief Financial Officer; and
Robert B. Hensley, Gary M. Merry and James W. Thorne,
our three other most highly compensated executive officers.
Messrs. Hensley, Merry, Thorne and Ullman are sometimes
referred to collectively in this Proxy Statement as our
Executive Vice Presidents. The following table sets
forth the name, age and position(s) of each of our five named
executive officers:
|
|
|
|
|
|
|
Name
|
|
Age
|
|
Position
|
|
R. Neal Black
|
|
|
56
|
|
|
Director, President and Chief Executive Officer
|
Robert B. Hensley
|
|
|
58
|
|
|
Executive Vice President for Human Resources, Real Estate and
Loss Prevention
|
Gary M. Merry
|
|
|
48
|
|
|
Executive Vice President for Store and Catalog Operations
|
James W. Thorne
|
|
|
50
|
|
|
Executive Vice President for Merchandising and Chief
Merchandising Officer
|
David E. Ullman
|
|
|
53
|
|
|
Executive Vice President, Chief Financial Officer and Principal
Financial and Accounting Officer
|
R.
NEAL BLACK
R. Neal Black has served as one of our directors and as our
Chief Executive Officer since December 2008. Mr. Black has
been our President since April 2007. He joined the Company in
January 2000 and served as Executive Vice
President-Merchandising and Marketing from January 2000 to April
2007. In addition, Mr. Black was our Chief Merchandising
Officer from January 2000 to December 2008. Mr. Black has
spent his entire professional career in the retail industry,
including: from 1998 to 2000, with McRaes department
stores, a division of Saks Incorporated, as Senior Vice
President/General Merchandise Manager; from 1995 to 1998, with
Venture Stores, Inc., a publicly traded family value retailer,
ending as Senior Vice President of Product Development and
General Merchandise Manager; from 1992 to 1995, with Gottschalks
Department Stores, a regional department store headquartered in
Fresno, California, ending as Vice President/General Merchandise
Manager; from 1983 to 1992, with Design Linens, Inc., a
privately-owned specialty retail chain headquartered in
Portland, Oregon, ending as President; and from 1976 to 1983,
with Meier & Frank, a division of May Department
Stores, ending as a Buyer.
ROBERT
B. HENSLEY
Robert B. Hensley has been our Executive Vice President for
Human Resources, Real Estate and Loss Prevention since July
2007. Mr. Hensley was our Executive Vice President-Store
Operations, Real Estate and Human Resources from April 2007 to
July 2007 and our Executive Vice President-Stores and Operations
from December 1999 to April 2007.
GARY
M. MERRY
Gary M. Merry has been our Executive Vice President for Store
and Catalog Operations since July 2007. Mr. Merry was our
Senior Vice President for Operations from April 2007 to July
2007 and our Senior Vice President-Chief Information Officer
from July 2001 to April 2007. Among his other duties,
Mr. Merry was our Chief Information Officer from September
2000 to April 2008.
JAMES
W. THORNE
James W. Thorne has been our Executive Vice President for
Merchandising and Chief Merchandising Officer since February
2009. Mr. Thorne joined the Company in 1986 and has held a
variety of increasingly important merchandising positions,
including: Senior Vice President for Merchandising from
September 2008
13
to January 2009; Senior Vice President for Planning and
Allocation from June 2005 to September 2008; and Vice
President/General Merchandise Manager for Tailored Clothing from
February 2000 to June 2005.
DAVID
E. ULLMAN
David E. Ullman has been our Executive Vice President-Chief
Financial Officer since September 1995. Mr. Ullman is our
Principal Financial and Accounting Officer.
EXECUTIVE
COMPENSATION AND RELATED INFORMATION
COMPENSATION
DISCUSSION AND ANALYSIS
The following discussion and analysis discusses the principles
underlying the Companys compensation policies and
decisions and the most important factors relevant to an analysis
of these policies and decisions. This discussion focuses on the
compensation of our named executive officers. This discussion
and analysis provides qualitative information regarding the
manner and context in which compensation is awarded to and
earned by our named executive officers and is intended to place
in perspective the data presented in the tables and narratives
that follow.
Process
of Determining Executive Compensation
Our Compensation Committee, comprised of Messrs. Herron,
Homes and Ritman (Chairman), determines the compensation of our
named executive officers and may advise the Board, or take other
action, on other matters of compensation.
Management provides the Compensation Committee with material for
review concerning the compensation of the named executive
officers, including a history of salary and other compensation
paid to each named executive officer. Our Chief Executive
Officer presents to the Compensation Committee an annual review
of executive and management compensation and recommendations for
base salary increases and equity and non-equity incentive
compensation (other than for himself). Our Chief Executive
Officer is not present during the deliberation or determination
by the Compensation Committee regarding his own compensation.
Charles D. Frazer, our corporate Secretary, acts as Secretary to
the Compensation Committee and is usually present during
general, but not executive, sessions of the Compensation
Committee. Mr. Frazer does not participate in the
deliberations of the Compensation Committee. The Compensation
Committee reviews the performance of each named executive
officer against the established criteria for payment of
incentive compensation for performance in the prior year and
determines whether and in what amount incentive compensation
should be paid. The Compensation Committee also considers
compensation matters applicable to the current fiscal year and,
when appropriate, authorizes employment contracts, contract
extensions, base salary increases and equity and non-equity
incentive compensation targets.
Objectives
of the Compensation Program
Our Compensation Committee applies a consistent philosophy to
compensation for our named executive officers. This philosophy
is based on the premise that the Companys achievements are
the result of the coordinated efforts of all of our employees
working toward common objectives. We strive to achieve those
objectives through teamwork that is focused on meeting the
expectations of our customers and stockholders. The primary
objectives of the compensation program are to:
|
|
|
|
|
align compensation with our corporate strategies and business
objectives and performance;
|
|
|
|
enable the Company to attract, retain and reward senior managers
who contribute to the long-term success of the Company; and
|
|
|
|
promote the achievement of key financial performance measures by
linking compensation to the achievement of measurable corporate
performance goals.
|
14
We believe that this compensation program allows us to
successfully attract and retain talented employees, enhance
stockholder value and foster innovation.
To achieve these objectives, our Compensation Committee has
established the following principles to guide the development of
our compensation program and to provide a framework for all
compensation decisions: (a) provide a total compensation
package that will attract the best talent to the Company,
motivate individuals to perform at their highest levels, reward
outstanding performance and retain executives whose skills are
critical for building long-term stockholder value and
(b) establish performance-based incentives that are
directly tied to the overall financial results of the Company.
Components
of Our Executive Compensation Program
The primary elements of our executive compensation program are:
|
|
|
|
|
Base salary;
|
|
|
|
Non-equity performance-based incentive compensation (in the form
of cash bonuses);
|
|
|
|
Equity performance-based incentive compensation (in the form of
restricted stock units); and
|
|
|
|
Other employee benefits and non-cash perquisites.
|
In order to permit us to retain our named executive officers and
to provide sufficient incentives for their highest possible
level of performance, salaries and incentive compensation of
such officers are reviewed at least annually and are usually
adjusted after taking into account market conditions, individual
responsibilities, experience, performance and other factors
(including, where applicable, the terms of their employment
agreements). Each named executive officer is employed by the
Company pursuant to an employment agreement which sets forth,
among other matters, the executive officers annualized
cash base salary and non-equity incentive compensation
opportunity (expressed as a percentage of base salary).
Mr. Blacks agreement also sets forth his equity
incentive compensation opportunity (expressed as a percentage of
base salary).
These agreements with our named executive officers provide for
certain potential payments upon termination for a variety of
reasons, including, for Mr. Black only, following a change
in control of the Company. We have provided more detailed
information about these benefits, along with estimates of their
values under certain circumstances, below under the caption
Potential Payments on Termination or Change in
Control. We believe these benefits help us compete for the
services of talented individuals in a manner which is
responsible and in the best interests of our Company and
stockholders.
Substantially all of the incentive compensation paid or granted
to our named executive officers is intended to qualify as
performance-based compensation under Section 162(m) of the
Internal Revenue Code. Our compensation-setting process consists
of establishing for each named executive officer a targeted
overall compensation level intended to permit us to retain that
officer and provide sufficient incentive for his highest
possible level of performance. The targeted compensation level
is then allocated between base salary; non-equity incentive
compensation (in the form of cash bonuses); and equity incentive
compensation (in the form of restricted stock units). Unless
otherwise provided in the employment agreement for a particular
named executive officer, neither the targeted compensation nor
the allocation thereof is fixed by formula. Rather, they are
determined based on many factors including internal pay equity,
external market factors, reasonable employee expectations, pay
history and performance.
Base
Salary
We pay a base salary to attract talented executives and provide
them with a secure base of cash compensation. The Compensation
Committee typically reviews compensation for the named executive
officers at a time proximate to the filing of our Annual Report
on
Form 10-K
for the prior fiscal year. Annual increases are not assured. For
example, no adjustments to base salary were made for Fiscal
2009. Base salary increases for the named executive officers for
pay year 2010 were set on March 30, 2010, and made
effective August 1, 2010, the date on which base salary
increases went into effect for other employees of the Company.
Generally, in deciding whether, and to what extent, to make an
adjustment to the respective base salaries of
15
the named executive officers (other than the Chief Executive
Officer), an important factor considered by the Compensation
Committee is the Chief Executive Officers evaluation of
the individual performances of the other named executive
officers. Generally, the Chief Executive Officer makes his
recommendation based upon his evaluation of each other named
executive officers individual contribution to the
performance of the Company and such other factors as he may deem
relevant.
The Compensation Committees approval of base salary
increases for pay year 2011 for our named executive officers is
contingent upon base salary increases going into effect
generally for other employees of the Company. The Compensation
Committee will set the date for commencement of regular pay
increases, if any, for the named executive officers. Such
increases are not expected to take effect, if at all, prior to
August 2011. The annualized base salaries for the named
executive officers for pay year 2011 are, or are anticipated to
be, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2011
|
|
|
Current Fiscal
|
|
Annualized
|
|
|
2011
|
|
Base Salary If
|
|
|
Annualized
|
|
Increases Take
|
Named Executive
|
|
Base Salary
|
|
Effect
|
Officer
|
|
($)
|
|
($)
|
|
R. Neal Black
|
|
|
775,000
|
|
|
|
791,275
|
|
Robert B. Hensley
|
|
|
490,000
|
|
|
|
494,900
|
|
Gary M. Merry
|
|
|
400,000
|
|
|
|
465,000
|
|
James W. Thorne
|
|
|
375,000
|
|
|
|
440,000
|
|
David E. Ullman
|
|
|
465,000
|
|
|
|
469,650
|
|
Non-Equity
Incentive Compensation
If approved by the Compensation Committee, non-equity incentive
compensation to the named executive officers is generally paid
under the Jos. A. Bank Clothiers, Inc. Executive Management
Incentive Plan (the Cash Incentive Plan). The Cash
Incentive Plan is intended to permit award payments that may
qualify as performance-based compensation within the
meaning of Section 162(m) of the Internal Revenue Code,
thereby preserving the Companys ability to receive federal
income tax deductions for those awards to the extent that they
in fact comply with that Code section. For each of Fiscal 2010
and Fiscal 2011, the Compensation Committee established under
the Cash Incentive Plan cash incentive programs designed to
reward Company-wide performance through tying the payment of
non-equity incentive compensation primarily to, among other
things, the earning by the Company of certain net income goals.
Such cash incentive programs are referred to herein respectively
as the 2010 Cash Incentive Program and the
2011 Cash Incentive Program and collectively as the
Cash Incentive Programs. For purposes of the Cash
Incentive Programs, net income is the reported net
income of the Company for the applicable fiscal year and is
therefore determined after deduction for all incentive plan and
other compensation expenses. All award payments under the 2010
Cash Incentive Program were paid in cash. If payable under the
2011 Cash Incentive Program, award payments are expected to be
paid in cash.
The key performance goal under each of the Cash Incentive
Programs is the Company earning net income within or above a
specified range (the Eligibility Range) for the
applicable fiscal year. If the Companys net income is
below the Eligibility Range for a particular Cash Incentive
Program, an award payment cannot be authorized under that
program. If the Companys net income is within the
Eligibility Range, the percentage of the award target which each
named executive officer is eligible to earn increases as net
income increases, up to 100% of his award target. If the
Companys net income is at or above the highest level of
net income within the Eligibility Range, each named executive
officer is eligible to earn his maximum award target. As net
income is a key factor in determining a companys overall
financial success, the Compensation Committee believes that
using an Eligibility Range based on net income is an appropriate
basis for establishing incentive compensation goals.
The Company earning net income within or above the applicable
Eligibility Range is the only performance goal under each of the
Cash Incentive Programs for Mr. Black, our Chief Executive
Officer. With
16
respect to Messrs. Hensley, Merry, Thorne and Ullman, our
Executive Vice Presidents (who are the only other named
executive officers), the following goals (the Personal
Goals) may also be considered and utilized by the
Compensation Committee in its exercise of negative discretion to
reduce the amount of an award that would otherwise have been
payable at any particular level of net income achieved by the
Company: (a) the participant receiving an overall job
performance rating of Effective or better (the
equivalent of 3 out of 5); (b) the participant complying
with the Companys Code of Conduct, Associate Handbook and
other rules, regulations and policies and not engaging in any
dishonest acts or other acts that are or may be detrimental to
customers, fellow associates or the Company; and (c) the
participant achieving specific goals for departmental or
individual performance. The Personal Goals, together with the
Company earning net income within or above the Eligibility
Range, are collectively referred to as the Performance
Goals.
For the 2011 Cash Incentive Program, the Compensation Committee
established for Mr. Black an Eligibility Range of
$85.5 million to $94.1 million of net income and for
the Executive Vice Presidents an Eligibility Range of
$88.5 million to $95.3 million of net income. If the
Company earns net income below the low end of the Eligibility
Range, the applicable participant will not receive an award
payment under this program. At $85.5 million of net income,
Mr. Black will be eligible to receive up to 60% of his base
salary; at $88.5 million of net income
Messrs. Hensley, Merry, Thorne and Ullman will each be
eligible to receive up to 10% of their respective base salaries.
At or above $94.1 million of net income, Mr. Black
will be eligible to receive up to approximately 151.6% of his
base salary; at or above $95.3 million of net income,
Messrs. Hensley, Merry, Thorne and Ullman will each be
eligible to receive up to 65% of their respective base salaries.
Between the low and high ends of the Eligibility Ranges, the
percentage of base salary which each participant will be
eligible to receive will increase as net income increases.
For the 2010 Cash Incentive Program, the Compensation Committee
established an Eligibility Range of $71.2 million to
$78.4 million of net income. If the Company had earned less
than $71.2 million of net income, no participant would have
been eligible for an award payment under this program. At
$71.2 million of net income, Mr. Black would have been
eligible to receive up to 60% of his base salary and
Messrs. Hensley, Merry, Thorne and Ullman would have each
been eligible to receive up to 10% of their respective base
salaries. At or above $78.4 million of net income,
Mr. Black would have been eligible to receive up to
approximately 151.6% of his base salary and
Messrs. Hensley, Merry, Thorne and Ullman would have each
been eligible to receive up to 65% of their respective base
salaries. Between $71.2 million and $78.4 million of
net income, the percentage of base salary which each participant
would have been eligible to receive would have increased as net
income increased.
Upon a review of the Companys Fiscal 2010 performance
(which exceeded the maximum net income amount in the Eligibility
Range for the 2010 Cash Incentive Program) and the individual
performance by each named executive officer in Fiscal 2010, the
Compensation Committee approved the payment of the following
amounts under the 2010 Cash Incentive Program:
|
|
|
|
|
|
|
2010 Cash
|
|
|
Incentive Program
|
Named Executive
|
|
Award Payments
|
Officer
|
|
($)
|
|
R. Neal Black
|
|
|
1,175,000
|
|
Robert B. Hensley
|
|
|
318,500
|
|
Gary M. Merry
|
|
|
260,000
|
|
James W. Thorne
|
|
|
243,750
|
|
David E. Ullman
|
|
|
302,250
|
|
For Fiscal 2010, the non-equity incentive compensation paid to
each named executive officers was 100% of his respective maximum
award target under the 2010 Cash Incentive Program.
Equity
Incentive Compensation
If approved by the Compensation Committee, equity incentive
compensation may be granted to the named executive officers
under the Equity Incentive Plan. The principal purposes of the
Equity Incentive Plan
17
are to promote the interests of the Company and our stockholders
by providing our employees, directors and consultants with
appropriate incentives and rewards to encourage them to enter
into and continue in the employ or service of the Company or its
subsidiaries, to acquire a proprietary interest in the long-term
success of the Company and to reward the performance of
individuals in fulfilling their personal responsibilities for
long-range and annual achievements. The Equity Incentive Plan is
intended to permit the grant of performance-based
compensation within the meaning of Section 162(m) of
the Internal Revenue Code, thereby preserving the Companys
ability to receive federal income tax deductions for those
awards to the extent that they in fact comply with that Code
section.
For each of Fiscal 2010 and Fiscal 2011, the Compensation
Committee established under the Equity Incentive Plan restricted
stock unit programs designed to reward Company-wide performance
through tying the earning of equity incentive compensation
primarily to, among other things, the earning by the Company of
certain net income goals. Such equity incentive programs are
referred to herein respectively as the 2010 Equity
Incentive Program and the 2011 Equity Incentive
Program and collectively as the Equity Incentive
Programs. For purposes of the Equity Incentive Programs,
net income is the reported net income of the Company
for the applicable fiscal year and is therefore determined after
deduction for all incentive plan and other compensation
expenses. All award payments under the 2010 Equity Incentive
Program were paid in performance restricted stock units
(Performance RSUs). If payable under the 2011 Equity
Incentive Program, award payments are expected to be paid in
Performance RSUs.
The performance goals under each of the Equity Incentive
Programs are qualitatively the same as the Performance Goals
under the Cash Incentive Program, i.e., such goals are based
upon the Company earning net income within or above an
Eligibility Range for the applicable fiscal year and, with
respect to the Executive Vice Presidents, the Personal Goals as
set forth above under Non-equity Incentive
Compensation. However, the levels of net income within the
Eligibility Ranges for the Equity Incentive Programs are higher
than those established under the Cash Incentive Programs. As net
income is a key factor in determining a companys overall
financial success, the Compensation Committee believes that
using an Eligibility Range based on net income is an appropriate
basis for establishing incentive compensation goals.
If the Companys net income is below the Eligibility Range
for a particular Equity Incentive Program, no Performance RSUs
can be earned under that program. If the Companys net
income is within the Eligibility Range, the number of
Performance RSUs which the named executive officers are eligible
to earn increases as net income increases, up to 100% of the
award target. If the Companys net income is at or above
the highest level of net income within the Eligibility Range,
each named executive officer is eligible to earn his maximum
award target.
The Company earning net income within or above the applicable
Eligibility Range is the only performance goal under each of the
Equity Incentive Programs for Mr. Black. With respect to
Messrs. Hensley, Merry, Thorne and Ullman, the same
personal goals applicable to the Cash Incentive Programs are
also applicable to the Equity Incentive Programs.
For the 2011 Equity Incentive Program, the Compensation
Committee established for Mr. Black an Eligibility Range of
$87.2 million to $94.1 million of net income and for
the Executive Vice Presidents an Eligibility Range of
$94.5 million to $96.2 million of net income. If the
Company earns net income below the low end of the Eligibility
Range, the applicable participant cannot earn Performance RSUs
under this program. At $87.2 million of net income,
Mr. Black will be eligible to earn a number of Performance
RSUs having a value of up to $178,675; at $94.5 million of
net income, each of the Executive Vice Presidents will be
eligible to earn a number of Performance RSUs having a value of
up to $50,000. At or above $94.1 million of net income,
Mr. Black will be eligible to earn a number of Performance
RSUs having a value of up to $1,965,425; at or above
$96.2 million of net income, each of the Executive Vice
Presidents will be eligible to earn a number of Performance RSUs
having a value of up to $150,000. Between the low and high ends
of the Eligibility Ranges, the number of Performance RSUs which
each participant will be eligible to earn will increase as net
income increases. The number of Performance RSUs granted was
determined based on $48.72 per unit, the equivalent of the
closing price of a share of common stock on March 29, 2011,
the date of grant under the 2011 Equity Incentive Program.
18
For the 2010 Equity Incentive Program, the Compensation
Committee established for Mr. Black an Eligibility Range of
$72.6 million to $78.4 million of net income and for
the Executive Vice Presidents an Eligibility Range of
$76.9 million to $79.4 million of net income. If the
Company had earned net income below the low end of the
Eligibility Range, the applicable participant could not have
earned Performance RSUs under this program. At
$72.6 million of net income, Mr. Black would have been
eligible to earn a number of Performance RSUs having a value of
up to $175,000; at $76.9 million of net income
Messrs. Hensley, Merry, Thorne and Ullman would have each
been eligible to earn a number of Performance RSUs having a
value of up to $50,000. At or above $78.4 million of net
income, Mr. Black would have been eligible to earn a number
of Performance RSUs having a value of up to $1,925,000; at or
above $79.4 million of net income, Messrs. Hensley,
Merry, Thorne and Ullman would have each been eligible to earn a
number of Performance RSUs having a value of up to $150,000.
Between the low and high ends of the Eligibility Ranges, the
number of Performance RSUs which each participant was eligible
to earn increased as net income increased. The number of
Performance RSUs granted was determined based on $39.72 per
unit, the equivalent, on a post-dividend basis, of the closing
price of a share of common stock on June 17, 2010, the date
of grant under the 2010 Equity Incentive Program.
Upon a review of the Companys performance (which exceeded
the maximum net income amount in the Eligibility Range for the
2010 Equity Incentive Program) and the individual performance by
each named executive officer in Fiscal 2010, the Compensation
Committee certified the earning of Performance RSUs under the
2010 Equity Incentive Program as follows:
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2010 Equity
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Incentive
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Program
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Vested Restricted
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Named Executive
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Stock Units
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Officer
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(#)
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R. Neal Black
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48,463
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(1)
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Robert B. Hensley
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3,775
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(2)
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Gary M. Merry
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3,775
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(2)
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James W. Thorne
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3,775
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(2)
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David E. Ullman
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3,775
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(2)
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(1)
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Subject to the terms of Mr. Blacks Performance RSU
Award Agreement, of the Performance RSUs earned by
Mr. Black, 19,512 Performance RSUs will vest on
June 17, 2011, 14,476 Performance RSUs will vest on
June 17, 2012 and 14,475 Performance RSUs will vest on
June 17, 2013.
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(2)
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Subject to the terms of each Executive Vice Presidents
Performance RSU Award Agreement, all of the Performance RSUs
earned by each Executive Vice President will vest on
June 17, 2013.
|
For Fiscal 2010, the Performance RSUs earned by each named
executive officer was 100% of his respective maximum award
target under the 2010 Equity Incentive Program.
2011
Supplemental Equity Incentive Program
As a special incentive to the named executive officers to
achieve extraordinary results in Fiscal 2011, the Compensation
Committee established for the named executive officers a
supplemental equity incentive program for Fiscal 2011 (the
2011 Supplemental Equity Incentive Program) pursuant
to the Equity Incentive Plan. The 2011 Supplemental Equity
Incentive Program permits the Company to grant
performance-based compensation within the meaning of
Section 162(m) of the Internal Revenue Code, thereby
preserving the Companys ability to receive federal income
tax deductions for those awards to the extent that they in fact
comply with that Code section. If payable under the 2011
Supplemental Equity Incentive Program, award payments are
expected to be paid in Performance RSUs.
The performance goals under the 2011 Supplemental Equity
Incentive Program are very similar to the performance goals
under the 2011 Cash Incentive Program and the 2011 Equity
Incentive Plan, i.e., such goals are based upon the Company
earning a certain amount net income for Fiscal 2011 and, with
respect to the
19
Executive Vice Presidents, personal goals as set forth above
under Non-equity Incentive Compensation. However,
instead of being based upon Eligibility Ranges of net income,
the 2011 Supplemental Equity Incentive Program is based on a
single level of net income. In the event the Company earns at
least $103.0 million of net income in fiscal 2011,
Mr. Black will be eligible to earn a number of Performance
RSUs having a value of up to $250,000 and each of the Executive
Vice Presidents will be eligible to earn a number of Performance
RSUs having a value of up to $50,000. The number of Performance
RSUs granted was determined based on $48.72 per unit, the
equivalent of the closing price of a share of common stock on
March 29, 2011, the date of grant under the 2011
Supplemental Equity Incentive Program.
Negative
Discretion
For each of the Incentive Programs (i.e., the 2010 Cash
Incentive Program, the 2010 Equity Incentive Program, the 2011
Cash Incentive Program, the 2011 Equity Incentive Program and
the 2011 Supplemental Equity Incentive Program), the
Compensation Committee was or is entitled to exercise negative
discretion to reduce the amount of a cash award that otherwise
would have been payable to, or to reduce the number of
Performance RSUs that would otherwise have been earned by, a
named executive officer at any particular level of net income
achieved by the Company, even if the Companys net income
is within or above the applicable Eligibility Range or level.
Without limiting the generality of the foregoing, in deciding
whether to certify the earning of Performance RSUs under the
2011 Supplemental Equity Incentive Program, the Committee will
consider whether the Company has accumulated at least
$333 million of combined cash and cash equivalents and
short-term investments as of the end of Fiscal 2011.
In deciding whether, and to what extent, to pay a cash award to,
or to certify the earning of Performance RSUs by, an Executive
Vice President, an important factor which may also be considered
by the Compensation Committee in exercising its negative
discretion is Mr. Blacks evaluation of the individual
performance of each Executive Vice President. Mr. Black
shall make a recommendation to the Compensation Committee for a
cash
and/or
equity award to each Executive Vice President at or below the
applicable bonus potential based upon his evaluation of the
Executive Vice Presidents satisfaction of the applicable
Performance Goals, the Executive Vice Presidents
contribution to the performance of the Company and such other
factors as Mr. Black may deem relevant.
The final determination of the amount of a cash award that will
be paid to, or the number of Performance RSUs that will be
earned by, each named executive officer is made by the
Compensation Committee; however, the Compensation Committee may
not increase the cash award payable to, or the number of
Performance RSUs which will be earned by, a named executive
officer above the amount or number that is otherwise applicable
at any particular level of net income achieved by the Company.
The Incentive Programs do not confer any right or entitlement to
the receipt of any cash or equity award.
Other
Employee Benefits and Non-Cash Compensation
In addition to the compensation described above, certain
perquisites and benefits are provided to our named executive
officers in cash, in-kind or through direct payment to third
party providers. The Company believes these perquisites and
benefits help us to be competitive in attracting and retaining
senior management and are commensurate with the experience and
skill of our named executive officers. In Fiscal 2010, the total
value of these perquisites and benefits for the named executive
officers ranged from approximately 6.6% to approximately 8.4% of
base salary of the applicable named executive officer.
Certain perquisites are provided in accordance with the
respective employment agreements of the named executive
officers. Messrs. Black, Hensley, Merry and Thorne each
receive a car allowance. Mr. Ullman receives the use of a
Company-leased car.
Certain benefits are made available by the Company under
broad-based programs offered to most of our employees, including
the named executive officers. Such benefits include insurance
for medical, prescription drugs, dental, vision, long-term
disability, life and accidental death and dismemberment and a
legal services plan. For each of the named executive officers,
the Company pays for these insurance benefits, as well as
insurance for up to $2,500 of medical expense reimbursement. The
Company also sponsors a 401(k) plan. The
20
Company has generally elected, from year to year, to make a
discretionary contribution to employees 401(k) accounts.
In the event the Company elects to make a discretionary
contribution, the named executive officers would be eligible to
participate on the same basis as all other eligible employees;
provided, however, that the contribution for certain executives
may be limited by IRS rules.
In March 2010, the Board adopted the 2010 Deferred Compensation
Plan, which is a nonqualified, unfunded plan designed to provide
a select group of the Companys senior management (which
includes each of the named executive officers), highly
compensated employees and non-employee directors with the
opportunity to accumulate capital by deferring compensation on a
pre-tax basis. The 2010 Deferred Compensation Plan strengthens
the ability of the Company to attract, reward and retain
eligible employees and non-employee directors by providing them
with a means to defer receipt of cash and shares of common stock
associated with future grants of restricted stock units,
performance share awards and certain other cash- and stock-based
awards.
Employees who participate in the 2010 Deferred Compensation Plan
may defer either all or none of any restricted stock unit awards
and any performance share awards and up to 15% of base salary
and up to 25% of cash bonuses and incentive awards. Non-employee
directors who participate in the 2010 Deferred Compensation Plan
may defer all or none of any restricted stock unit awards and
any other incentive compensation and all or none of their annual
retainer fees, committee chairman fees, lead director fees and
meeting fees.
All cash and awards that are to be deferred under the 2010
Deferred Compensation Plan will be deemed invested in Company
common stock equivalent units. In the case of stock-based awards
that are deferred, the number of common stock equivalent units
credited to a participants account will be based on the
number of shares underlying those awards. In the case of cash
deferrals, the number of common stock equivalent units credited
to a participants account will be based on the
Companys share price on the date of the deemed investment.
If stock-based awards are subject to a vesting condition, the
investment in stock unit equivalents will be deemed to occur on
the date that the award vests.
In general (and subject to certain exceptions set forth in the
2010 Deferred Compensation Plan), elections to defer
compensation must be made in the tax year prior to the year in
which the compensation would otherwise be earned. At the time
that an employee makes each deferral election, he or she may
choose between a distribution upon separation from service
(subject to a
6-month
delay applicable to certain officers) or payment at a scheduled
future date of 5 years or 10 years following the end
of the year in which that election becomes irrevocable.
Regardless of election, distributions to employees will be made
upon the first to occur of (a) separation from service
(subject to a
6-month
delay applicable to certain officers); (b) occurrence of
the 5 or 10 year scheduled distribution date, as
applicable; (c) a change in control of the Company; or
(d) death. Distributions to Non-Employee Directors will be
made upon the first to occur of (x) separation from
service; (y) change in control of the Company; or
(z) death. Distributions under the 2010 Deferred
Compensation Plan will generally be paid in shares of Company
common stock, with fractional shares paid in cash. However, the
Companys Compensation Committee has the discretion to make
a determination that distributions be paid in cash or a
combination of cash and shares. In the event of an unforeseeable
emergency, a participant will be permitted, subject to plan
rules, to elect a hardship distribution from his or her account
prior to the otherwise applicable payment date.
The Company also maintains a nonqualified deferred compensation
plan (the Fidelity Deferred Compensation Plan) that
is administered by Fidelity Management Trust Company
(Fidelity). Under the Fidelity Deferred Compensation
Plan, certain executives, including the named executive
officers, are entitled to defer up to 15% of their base salary
and up to 25% of their annual non-equity incentive compensation.
Effective salary deferral elections must be made by eligible
executives prior to the end of the calendar year with respect to
salary amounts to be earned in the following year and effective
non-equity incentive compensation deferral elections must be
made no later than six months prior to the end of the applicable
performance period. Participants in the Fidelity Deferred
Compensation Plan are entitled to direct the investment of the
deferred amounts by selecting one or more permissible investment
alternatives offered under the plan. Under the Fidelity Deferred
Compensation Plan, participants are entitled to change their
investment selection by contacting Fidelity. The Company does
not restrict the frequency of changes in the investment
selection.
21
Fidelity maintains an excessive trading policy which generally
prohibits exchanges in and then out of a fund option within
30 days (a roundtrip). Under Fidelitys
excessive trading policy, participants are limited to one
roundtrip transaction per fund within any rolling
90-day
period, subject to an overall limit of four roundtrip
transactions across all funds over a rolling
12-month
period. The value of the participants investment is based
directly on the performance of the underlying mutual funds
selected by the participants.
Under the Fidelity Deferred Compensation Plan, a participant is
entitled to elect to receive distributions, either in a lump sum
or in a series of substantially equal payments, either at
separation of service or at the earlier of separation of service
or reaching a pre-selected age. Regardless of any such election
made by the participant, a lump sum distribution will
automatically be made upon the earlier to occur of
(a) separation of service prior to age 62;
(b) death; or (c) a change in control of the Company.
We do not contribute to the Fidelity Deferred Compensation Plan
or guarantee or supplement deemed investment returns on the
participants accounts. The Fidelity Deferred Compensation
Plan essentially operates as an uninsured, tax-advantaged
personal brokerage account of the participant. Participation in
this plan does not affect the participants base salary or
annual incentive compensation. Amounts deferred under the
Fidelity Deferred Compensation Plan are held in trust for
payment of benefits under the plan, subject to the claims of the
Companys general creditors.
The 2010 Deferred Compensation Plan and the Fidelity Deferred
Compensation Plan provide an opportunity for the participants to
save for future financial needs at little cost to the Company.
Providing these nonqualified deferred compensation plans
contributes to the Companys attractiveness as an employer,
by providing the Company with a method of rewarding and
retaining these individuals.
For a more detailed discussion of the amounts earned in Fiscal
2010 under the Fidelity Deferred Compensation Plan by our named
executive officers, see the Nonqualified Deferred Compensation
table and accompanying narrative below.
Tax
and Accounting Considerations
Section 162(m) of the Internal Revenue Code imposes a
$1 million limit on the tax deductibility of
nonperformance-based compensation that is paid to a
covered employee (generally, the five executive
officers whose compensation is reported to stockholders in a
proxy statement). Compensation that qualifies as
performance-based compensation is excluded from the
$1 million deductibility cap, and therefore remains fully
deductible by the Company. In making compensation design and
award decisions, the Company takes Section 162(m) into
account in determining the total compensation cost which may be
incurred by the Company. If, consistent with our business needs
and without violating contractual obligations, we are able to
structure compensation arrangements to eliminate the negative
effects of Section 162(m), we will do so. If, however, the
Companys business needs dictate hiring or making
compensation decisions which may result in the Company incurring
non-deductible compensation expense, the Company will take such
actions as may be necessary to meet those needs. For example, a
much sought-after candidate for employment may be able to
command in the marketplace compensation arrangements which do
not meet the exceptions to the deductibility limitations under
Section 162(m). In Fiscal 2010 and Fiscal 2009,
substantially all compensation paid by the Company was
deductable without limitation under Section 162(m). We were
limited under Section 162(m) in prior years and may be
limited in future years. To mitigate the impact of
Section 162(m), the Company adopted the Cash Incentive Plan
and the Equity Incentive Plan.
In Fiscal 2006, the Company adopted the Statement of Financial
Accounting Standards No. 123R, now codified as FASB ASC
Topic 718 Stock Compensation (FASB
ASC 718), which generally requires a public entity to
measure the cost of employee services received for an award of
equity instruments based on the grant-date fair value of the
award. The adoption of FASB ASC 718 had no material effect
on our financial statements, because, at the time of the
adoption, all options issued under our previous equity incentive
plans were fully vested. FASB ASC 718 will govern the
expense to the Company associated with any equity that may be
issued under the Equity Incentive Plan. Generally, such equity
will be expensed over the associated vesting period established
pursuant to an equity award.
22
COMPENSATION
COMMITTEE REPORT
The undersigned, constituting all of the members of the
Compensation Committee, have reviewed and discussed with the
management of the Company the foregoing Compensation Discussion
and Analysis and, based on such review and discussion, have
recommended to the Board that the Compensation Discussion and
Analysis be included in this Proxy Statement.
Respectfully
submitted, Compensation Committee:
Sidney H. Ritman (Chairman)
William E. Herron
Henry Homes, III
23
COMPENSATION
TABLES
The following tables, narrative and footnotes discuss the
compensation of our named executive officers for Fiscal 2010,
Fiscal 2009 and Fiscal 2008. We follow the National Retail
Federations 4-5-4 retail calendar, whereby for
each fiscal quarter, the first month contains four weeks, the
second month contains five weeks and the third month contains
four weeks (each week containing the seven days from Sunday
through Saturday). Dividing the retail calendar into
52 weeks of seven days each, or 364 days, leaves an
extra day each year to be accounted for in a future fiscal
period. As a result every five to six years a week is added to
the fiscal calendar. Fiscal 2010, Fiscal 2009 and Fiscal 2008
were all 52 week years.
Summary
Compensation Table
The following table sets forth information concerning
compensation earned by our named executive officers for Fiscal
2010, Fiscal 2009 and Fiscal 2008.
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Change in
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Pension Value
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and Nonqualified
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Non-Equity
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Deferred
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Stock
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Option
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Incentive Plan
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Compensation
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All Other
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Name and
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Salary
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Bonus
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Awards
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Awards
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Compensation
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Earnings
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Compensation
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Total
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Principal Position
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Year
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($)
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($)
|
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($)
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($)
|
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($)
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($)
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($)
|
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($)
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(a)
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(b)
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(c)
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(d)
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(e)
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(f)
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(g)
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(h)
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(i)
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(j)
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R. Neal Black,
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2010
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762,500
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1,924,950
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1,175,000
|
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74,613
|
|
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50,606
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|
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3,987,669
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President and Chief
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2009
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750,000
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230,000
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1,500,000
|
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124,708
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42,210
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2,646,918
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Executive
Officer
(1)
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2008
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591,443
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50,000
|
|
|
|
|
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373,750
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28,550
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1,043,743
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David E. Ullman,
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2010
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457,500
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149,943
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302,250
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29,581
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34,916
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974,190
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Executive Vice
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2009
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450,000
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60,000
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292,500
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32,923
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27,466
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862,889
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President-Chief Financial Officer
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2008
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447,500
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25,000
|
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292,500
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24,249
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789,249
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Robert B. Hensley,
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2010
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|
482,500
|
|
|
|
|
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149,943
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|
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318,500
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32,667
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37,002
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1,020,612
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Executive Vice President for
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2009
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475,000
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50,000
|
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308,750
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56,584
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30,398
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920,732
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Human Resources, Real Estate
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2008
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473,750
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25,000
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308,750
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28,783
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836,283
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and Loss Prevention
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Gary M. Merry,
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2010
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377,500
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149,943
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260,000
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29,239
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816,682
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Executive Vice President for
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2009
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355,000
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125,000
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230,750
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23,922
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734,672
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Store and Catalog Operations
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2008
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353,750
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20,000
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230,750
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24,558
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629,058
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James W. Thorne,
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2010
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362,500
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149,943
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243,750
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30,380
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|
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786,573
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|
Executive Vice President for
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2009
|
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|
350,000
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125,000
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227,500
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25,871
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728,371
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Merchandising and Chief
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|
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2008
|
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285,825
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|
|
|
15,000
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|
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150,000
|
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19,264
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470,089
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Merchandising Officer
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Mr. Black became Chief Executive Officer of the Company on
December 21, 2008 and served as President and Chief
Executive Officer during all of Fiscal 2009. From April 2007
through December 20, 2008, Mr. Black was our President
and reported to Mr. Wildrick, who was then our Chief
Executive Officer.
|
Notes
to Summary Compensation Table
Bonus
The amounts reported in column (d) represent discretionary
bonuses earned for the applicable fiscal year. The Company paid
no discretionary bonuses or other compensation which are
reportable as bonuses as defined under SEC rules to the named
executive officers in Fiscal 2010.
Stock
and Option Awards
In Fiscal 2010, the Company issued to each named executive
officer a Performance Restricted Stock Unit Award Agreement.
Mr. Black had the opportunity to earn (and subsequently did
earn) 48,463 Performance RSUs and each of the Executive Vice
Presidents had the opportunity to earn (and subsequently did
earn) 3,775 Performance RSUs.
24
The Company issued no stock or option awards to the named
executive officers in Fiscal 2009 or Fiscal 2008.
Non-Equity
Incentive Plan Compensation
The amounts reported in column (g) reflect amounts earned
by, and paid to, each named executive officer for the applicable
fiscal year under the Companys Cash Incentive Program for
that year. The non-equity incentive compensation paid to the
named executive officers in Fiscal 2011, Fiscal 2010 and Fiscal
2009 for performance in Fiscal 2010, Fiscal 2009 and Fiscal
2008, respectively, represented the maximum potential awards
that could have been earned under the Cash Incentive Programs
for those years.
Changes
in Pension Value and Nonqualified Deferred Compensation
Earnings
The Company does not maintain a pension plan for which the named
executive officers are eligible. The amounts set forth in column
(h) represent the above-market earnings, if any, by the
named executive officers on their respective accounts in the
Fidelity Deferred Compensation Plan. Under SEC regulations, the
market rate of interest is deemed to be 120% of the
applicable federal long-term rate. The above-market earnings
credited to the participants in the Fidelity Deferred
Compensation Plan were calculated as the difference between the
return earned on such participants accounts during the
applicable fiscal year and the interest that would have been
earned at a rate equal to 120% of the applicable federal
long-term rate. None of the participants in the Fidelity
Deferred Compensation Plan had above-market earnings in Fiscal
2008.
All
Other Compensation
The tables below set forth the components of the amounts
reported as All Other Compensation in column (i). These
components are: (a) either an allowance for a car or the
use of a Company-leased car; (b) the cost of a legal
services plan and of insurance for health, prescription drugs,
medical expense reimbursement, dental, vision, long-term
disability, life, and accidental death and dismemberment; and
(c) amounts contributed by the Company for the named
executive officer under the Companys 401(k) plan. Except
with respect to Mr. Ullman, the amounts shown in column
(a) below are cash allowances and reflect the actual dollar
amounts paid in the applicable fiscal year. With respect to
Mr. Ullman, the amount shown in column (a) reflects
the value of Mr. Ullmans personal use of a
Company-leased car during the applicable fiscal year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2010 All Other Compensation
|
Named Executive
|
|
($)
|
Officer
|
|
(a)
|
|
(b)
|
|
(c)
|
|
Total
|
|
R. Neal Black
|
|
|
19,200
|
|
|
|
26,261
|
|
|
|
5,145
|
|
|
|
50,606
|
|
David E. Ullman
|
|
|
9,946
|
|
|
|
19,825
|
|
|
|
5,145
|
|
|
|
34,916
|
|
Robert B. Hensley
|
|
|
9,600
|
|
|
|
22,257
|
|
|
|
5,145
|
|
|
|
37,002
|
|
Gary M. Merry
|
|
|
9,600
|
|
|
|
14,494
|
|
|
|
5,145
|
|
|
|
29,239
|
|
James W. Thorne
|
|
|
9,600
|
|
|
|
15,635
|
|
|
|
5,145
|
|
|
|
30,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2009 All Other Compensation
|
Named Executive
|
|
($)
|
Officer
|
|
(a)
|
|
(b)
|
|
(c)
|
|
Total
|
|
R. Neal Black
|
|
|
19,200
|
|
|
|
18,582
|
|
|
|
4,428
|
|
|
|
42,210
|
|
David E. Ullman
|
|
|
9,068
|
|
|
|
13,970
|
|
|
|
4,428
|
|
|
|
27,466
|
|
Robert B. Hensley
|
|
|
9,600
|
|
|
|
16,370
|
|
|
|
4,428
|
|
|
|
30,398
|
|
Gary M. Merry
|
|
|
9,600
|
|
|
|
11,876
|
|
|
|
2,446
|
|
|
|
23,922
|
|
James W. Thorne
|
|
|
9,600
|
|
|
|
11,843
|
|
|
|
4,428
|
|
|
|
25,871
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2008 All Other Compensation
|
Named Executive
|
|
($)
|
Officer
|
|
(a)
|
|
(b)
|
|
(c)
|
|
Total
|
|
R. Neal Black
|
|
|
10,708
|
|
|
|
13,342
|
|
|
|
4,500
|
|
|
|
28,550
|
|
David E. Ullman
|
|
|
9,175
|
|
|
|
10,574
|
|
|
|
4,500
|
|
|
|
24,249
|
|
Robert B. Hensley
|
|
|
9,600
|
|
|
|
14,683
|
|
|
|
4,500
|
|
|
|
28,783
|
|
Gary M. Merry
|
|
|
9,254
|
|
|
|
10,804
|
|
|
|
4,500
|
|
|
|
24,558
|
|
James W. Thorne
|
|
|
4,200
|
|
|
|
10,564
|
|
|
|
4,500
|
|
|
|
19,264
|
|
Grants
of Plan-Based Awards
The following table sets forth information concerning grants of
non-equity and equity awards earned by our named executive
officers for Fiscal 2010 under the 2010 Cash Incentive Program
and 2010 Equity Incentive Program.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other
|
|
All Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
Option
|
|
|
|
Grant
|
|
|
|
|
|
|
|
|
|
|
Estimated Future
|
|
Awards:
|
|
Awards:
|
|
Exercise
|
|
Date Fair
|
|
|
|
|
Estimated Possible
|
|
Payouts Under
|
|
Number
|
|
Number of
|
|
or Base
|
|
Value of
|
|
|
|
|
Payouts Under Non-
|
|
Equity Incentive Plan
|
|
of Shares
|
|
Securities
|
|
Price of
|
|
Stock and
|
|
|
|
|
Equity Incentive Plan
Awards
(1)
|
|
Awards
(2)
|
|
of Stock
|
|
Underlying
|
|
Option
|
|
Option
|
|
|
Grant
|
|
Threshold
|
|
Target
|
|
Maximum
|
|
Threshold
|
|
Target
|
|
Maximum
|
|
or
Units
(3)
|
|
Options
(4)
|
|
Awards
|
|
Awards
|
Name
|
|
Date
|
|
($)
|
|
($)
|
|
($)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
($/sh)
|
|
($)
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
|
(e)
|
|
(f)
|
|
(g)
|
|
(h)
|
|
(i)
|
|
(j)
|
|
(k)
|
|
(l)
|
|
R. Neal Black
|
|
|
6/17/2010
|
|
|
|
465,000
|
|
|
|
1,175,000
|
|
|
|
1,175,000
|
|
|
|
4,405
|
|
|
|
48,463
|
|
|
|
48,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,924,950
|
|
David E. Ullman
|
|
|
6/17/2010
|
|
|
|
46,500
|
|
|
|
302,250
|
|
|
|
302,250
|
|
|
|
1,258
|
|
|
|
3,775
|
|
|
|
3,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149,943
|
|
Robert B. Hensley
|
|
|
6/17/2010
|
|
|
|
49,000
|
|
|
|
318,500
|
|
|
|
318,500
|
|
|
|
1,258
|
|
|
|
3,775
|
|
|
|
3,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149,943
|
|
Gary M. Merry
|
|
|
6/17/2010
|
|
|
|
40,000
|
|
|
|
260,000
|
|
|
|
260,000
|
|
|
|
1,258
|
|
|
|
3,775
|
|
|
|
3,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149,943
|
|
James W. Thorne
|
|
|
6/17/2010
|
|
|
|
37,500
|
|
|
|
243,750
|
|
|
|
243,750
|
|
|
|
1,258
|
|
|
|
3,775
|
|
|
|
3,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149,943
|
|
|
|
|
(1)
|
|
This column presents information about potential payouts under
the Companys 2010 Cash Incentive Program. The actual
non-equity incentive payment for performance in Fiscal 2010 was
paid to the named executive officers in April 2011. All such
payments are reflected in the Summary Compensation Table under
the column heading Non-Equity Incentive Plan
Compensation. For a more detailed description of the 2010
Cash Incentive Program, see the Non-Equity Incentive
Compensation section of the Compensation Discussion and
Analysis above. The 2010 Cash Incentive Program does not specify
a target amount; therefore the respective amounts in
the target column are representative amounts based
on the Companys actual Fiscal 2010 performance. The
threshold amount represents the amount payable at
the lowest net income level at which any award was payable and
the maximum is the amount payable at the highest net
income level. If the Companys Fiscal 2009 financial
performance was used in the determination of non-equity
incentive compensation for the named executive officers in
respect of the performance under the 2010 Cash Incentive
Program, the named executive officers would not have earned
non-equity incentive compensation for Fiscal 2010 because the
minimum net income threshold established under the 2010 Cash
Incentive Program was in excess of Fiscal 2009 net income.
|
|
(2)
|
|
This column presents information about potential payouts under
the Companys 2010 Equity Incentive Program. The actual
equity incentive payments for performance in Fiscal 2010 were
earned by the named executive officers in March 2011. All such
payments are reflected in the Summary Compensation Table under
the column heading Stock Awards. For a more detailed
description of the 2010 Equity Incentive Program, see the
Equity Incentive Compensation section of the
Compensation Discussion and Analysis above. The 2010 Equity
Incentive Program does not specify a target amount;
therefore the respective amounts in the target
column are representative amounts based on the Companys
actual Fiscal 2010 performance. The threshold amount
is the number of Performance RSUs issuable at the lowest net
income level at which any Performance RSUs could be earned and
the maximum is the number of Performance RSUs
issuable at the highest net income level. If the Companys
Fiscal 2009 financial performance was used in the determination
of equity incentive compensation for the named executive
officers in
|
26
|
|
|
|
|
respect of the performance under the 2010 Equity Incentive
Program, the named executive officers would not have earned
equity incentive compensation for Fiscal 2010 because the
minimum net income threshold established under the 2010 Equity
Incentive Program was in excess of Fiscal 2009 net income.
|
|
(3)
|
|
The Company did not grant any stock awards in Fiscal 2010.
|
|
(4)
|
|
The Company did not grant any option awards in Fiscal 2010.
|
Narrative
Disclosure to Summary Compensation Table and Grants of
Plan-Based Awards Table
Employment
Agreements
We had employment agreements with all of our named executive
officers during Fiscal 2010. The material terms of each
employment agreement are discussed below. Each named executive
officer is entitled to certain payments following the
termination of his employment with the Company. Set forth in the
section below entitled Potential Payments on Termination
or Change in Control is information regarding potential
payments on termination or change in control which may, under
certain circumstances, be due to each named executive officer.
R.
Neal Black
Mr. Black is employed by the Company pursuant to an amended
and restated employment agreement that expires on
January 26, 2013. Prior to August 1, 2010 (the date on
which base salary increases went into effect generally for other
employees of the Company), Mr. Blacks annualized base
salary in Fiscal 2010 was $750,000. Effective August 1,
2010, Mr. Blacks annualized base salary was $775,000.
For Fiscal 2011, Mr. Blacks annualized base salary
will remain $775,000 unless and until base salaries are
increased generally for other employees of the Company.
Contingent upon base salary increases going into effect
generally for other employees of the Company, it is anticipated
that Mr. Blacks base salary will increase to
$791,275. The employment agreement provides for an annual
incentive opportunity of up to 400% of base salary based upon
the achievement of annual performance goals. If earned, not less
than 150% of base salary is payable in cash as incentive
compensation. The balance of the incentive compensation, if any,
may be paid in equity. The earned equity incentive compensation,
if any, equal to the first 100% of base salary will vest on the
later to occur of (a) the first anniversary of the equity
grant date or (b) the date on which the Compensation
Committee determines the degree to which the performance goals
have been met. One-half of any additional earned equity bonus
will vest on each of the second and third anniversaries of the
grant date. The employment agreement also provides for benefits,
perquisites, severance and an agreement not to compete with the
Company, each of which is described in this Proxy Statement.
Mr. Black was elected to the Board in December 2008
concurrently with his appointment as our Chief Executive
Officer. Mr. Blacks employment agreement provides
that he will serve without additional compensation as a director
of the Company and, if he should so desire, any of its
subsidiaries. Mr. Black has agreed to resign any and all
such directorships concurrently with the expiration or other
termination of his employment under the employment agreement.
David
E. Ullman, Robert B. Hensley, Gary M. Merry and James W.
Thorne
Each of the Executive Vice Presidents is employed pursuant to an
employment agreement that expires on February 2, 2013. Each
of these employment agreements provides for an annual base
salary and an annual non-equity incentive opportunity of up to
65% of base salary based upon the achievement of annual
performance goals. Base salary increases and potential equity
incentive compensation are in the discretion of the Compensation
Committee. Although the base salary levels of the Executive Vice
Presidents have historically been adjusted each year, no
adjustments were made for Fiscal 2009. Each of these employment
agreements also provides for benefits, perquisites, severance
and the executive officers agreement not to compete with
the Company, each of which is described in this Proxy Statement.
The Compensation Discussion and Analysis section above includes
a detailed description of our non-equity incentive compensation
program and our equity incentive program.
27
Awards
under our Non-Equity Incentive Compensation Program and our
Equity Incentive Program
The Compensation Discussion and Analysis section above includes
a detailed description of our non-equity incentive compensation
program and our equity incentive program, as well as awards
granted thereunder in 2010. Any dividends or other distributions
paid to holders of record of the Companys stock will
accrue on the Performance RSUs awarded to the named executive
officers and reported in the Grants of Plan-Based Awards Table
above from and after the date of grant. These dividends or other
distributions will accrue in an amount equal to the product of
(i) the amount of such dividend or distribution paid with
respect to one share of the Companys stock and
(ii) the number of Performance RSUs granted, divided by the
fair market value of one share of stock on the applicable
dividend or distribution payment date for the dividend or other
distribution. All accrued amounts will be credited to the named
executive officers in the form of additional restricted stock
units on such date. These so-called Dividend
Equivalents will not be paid to the named executive
officers until settlement of their Performance RSUs in stock of
the Company.
Outstanding
Equity Awards at Fiscal 2010 Year-End
The following table reflects option awards and stock awards
outstanding as of January 29, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards
|
|
Stock Awards
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
Incentive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incentive
|
|
Plan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan
|
|
Awards:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Awards:
|
|
Market or
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
|
|
Payout
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
of
|
|
Value of
|
|
|
|
|
|
|
Incentive
|
|
|
|
|
|
|
|
Market
|
|
Unearned
|
|
Unearned
|
|
|
|
|
|
|
Plan Awards:
|
|
|
|
|
|
Number
|
|
Value of
|
|
Shares,
|
|
Shares,
|
|
|
Number of
|
|
Number of
|
|
Number of
|
|
|
|
|
|
of Shares
|
|
Shares or
|
|
Units or
|
|
Units or
|
|
|
Securities
|
|
Securities
|
|
Securities
|
|
|
|
|
|
or Units
|
|
Units of
|
|
Other
|
|
Other
|
|
|
Underlying
|
|
Underlying
|
|
Underlying
|
|
|
|
|
|
of Stock
|
|
Stock
|
|
Rights
|
|
Rights
|
|
|
Unexercised
|
|
Unexercised
|
|
Unexercised
|
|
|
|
|
|
that
|
|
that
|
|
that have
|
|
that have
|
|
|
Options
(1)
|
|
Options
|
|
Unearned
|
|
Option
|
|
Option
|
|
have not
|
|
have Not
|
|
not
|
|
not
|
|
|
(#)
|
|
(#)
|
|
Options
|
|
Exercise Price
|
|
Expiration
|
|
Vested
|
|
Vested
|
|
Vested
(2)
|
|
Vested
|
Name
|
|
Exercisable
|
|
Unexercisable
|
|
(#)
|
|
($)
|
|
Date
|
|
(#)
|
|
($)
|
|
(#)
|
|
($)
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
|
(e)
|
|
(f)
|
|
(g)
|
|
(h)
|
|
(i)
|
|
(j)
|
|
R. Neal Black
|
|
|
32,703
|
|
|
|
|
|
|
|
|
|
|
|
3.0575
|
|
|
|
03/15/12
|
|
|
|
|
|
|
|
|
|
|
|
48,463
|
|
|
|
2,033,023
|
|
|
|
|
45,558
|
|
|
|
|
|
|
|
|
|
|
|
6.5847
|
|
|
|
03/14/13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
David E. Ullman
|
|
|
70,312
|
|
|
|
|
|
|
|
|
|
|
|
3.0575
|
|
|
|
03/15/12
|
|
|
|
|
|
|
|
|
|
|
|
3,775
|
|
|
|
158,361
|
|
|
|
|
87,889
|
|
|
|
|
|
|
|
|
|
|
|
6.5847
|
|
|
|
03/14/13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Robert B. Hensley
|
|
|
27,349
|
|
|
|
|
|
|
|
|
|
|
|
6.5847
|
|
|
|
03/14/13
|
|
|
|
|
|
|
|
|
|
|
|
3,775
|
|
|
|
158,361
|
|
Gary M. Merry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,775
|
|
|
|
158,361
|
|
James W. Thorne
|
|
|
17,577
|
|
|
|
|
|
|
|
|
|
|
|
6.5847
|
|
|
|
03/14/13
|
|
|
|
|
|
|
|
|
|
|
|
3,775
|
|
|
|
158,361
|
|
|
|
|
(1)
|
|
All outstanding options held by the named executive officers
were subject to a vesting schedule at issuance and are now fully
vested. Each option expires on the tenth anniversary of its
grant date.
|
|
(2)
|
|
The Equity Incentive Plan Awards referred to in the above table
are the Performance RSUs earn by the named executive officers
under the 2010 Equity Incentive Program. Subject to the terms of
Mr. Blacks Performance RSU Award Agreement, of the
Performance RSUs earned by Mr. Black, 19,512 Performance
RSUs will vest on June 17, 2011, 14,476 Performance RSUs
will vest on June 17, 2012 and 14,475 Performance RSUs will
vest on June 17, 2013. Subject to the terms of each
Executive Vice Presidents Performance RSU Award Agreement,
all of the Performance RSUs earned by each Executive Vice
President will vest on June 17, 2013.
|
Option
Exercises and Stock Vested
The Option Exercises and Stock Vested table is omitted as none
of the named executive officers acquired shares of the Company
during Fiscal 2010 through the exercise of options or the
vesting of stock awards.
28
Pension
Benefits
The Pension Benefits table is omitted as the Company does not
offer pension benefits to the named executive officers.
Nonqualified
Deferred Compensation
The following table shows the nonqualified deferred compensation
benefits for each named executive officer during Fiscal 2010
under the Fidelity Deferred Compensation Plan. Mr. Merry
and Mr. Thorne did not elect to defer compensation under
the Fidelity Deferred Compensation Plan for Fiscal 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate
|
|
|
Executive
|
|
|
|
Aggregate
|
|
Aggregate
|
|
Balance
|
|
|
Contributions
|
|
Registrant
|
|
Earnings/(Losses)
|
|
Withdrawals/
|
|
at Last
|
|
|
in Last FY
|
|
Contributions
|
|
in Last FY
|
|
Distributions
|
|
FYE
|
Name
|
|
($)
|
|
in Last FY ($)
|
|
($)
|
|
($)
|
|
($)
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
|
(e)
|
|
(f)
|
|
R. Neal Black
|
|
|
|
|
|
|
|
|
|
|
103,758
|
|
|
|
|
|
|
|
718,240
|
|
David E. Ullman
|
|
|
112,644
|
|
|
|
|
|
|
|
41,001
|
|
|
|
|
|
|
|
313,986
|
|
Robert B. Hensley
|
|
|
35,875
|
|
|
|
|
|
|
|
48,624
|
|
|
|
|
|
|
|
391,268
|
|
Gary M. Merry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
James W. Thorne
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The amount reported in column (b) above for Mr. Ullman
is included in the amounts reported for Mr. Ullman in the
Summary Compensation Table as Salary (column (c))
for Fiscal 2010 and as Bonus (column (d)) and
Non-Equity Incentive Plan Compensation (column (g))
for Fiscal 2009. The amount reported in column (b) above
for Mr. Hensley is included in the amounts reported for
Mr. Hensley in the Summary Compensation Table as
Bonus (column (d)) and Non-Equity Incentive
Plan Compensation (column (g)) for Fiscal 2009. Such
non-equity incentive compensation was earned by
Messrs. Ullman and Hensley for performance in Fiscal 2009
and is therefore reported in the Summary Compensation Table as
Fiscal 2009 compensation. However, such compensation was payable
to, and was therefore deferred by, Messrs. Ullman and
Hensley in Fiscal 2010.
The amounts reported in column (d) above represent the
aggregate earnings (which include interest, dividends, dividend
equivalents and realized and unrealized gains and losses) on
each named executive officers investment in the applicable
named executive officers selected funds. Pursuant to SEC
regulations, all earnings on nonqualified deferred compensation
in excess of 120% of the applicable federal long-term rate are
deemed above market earnings and are reported in
column (h) of the Summary Compensation Table.
Included in the amounts reported in column (f) above are
amounts reported for Mr. Black, Mr. Ullman and
Mr. Hensley in the Summary Compensation Table as
Salary (column (c)), Bonus (column (d))
and/or
Non-Equity Incentive Plan Compensation (column (g)).
For Mr. Black, the deferred amounts were $29,475 for Fiscal
2008 and $34,615 for Fiscal 2009. For Mr. Ullman the
deferred amounts were $20,234 for Fiscal 2008, $35,212 for
Fiscal 2009 and $112,644 for Fiscal 2010. For Mr. Hensley
the deferred amounts were $30,500 for Fiscal 2008, $33,375 for
Fiscal 2009 and $35,875 for Fiscal 2010.
The Compensation Discussion and Analysis above includes a
detailed description of our deferred compensation plans,
including the types of compensation permitted to be deferred,
limitations on deferral and other material terms.
Potential
Payments on Termination or Change in Control
The table below contains information concerning potential
payments on termination or change in control which may be due
under the respective employment agreements with our named
executive officers based on the assumption that the event
triggering such payments had taken place on the last day of
Fiscal 2010. Non-equity incentive compensation earned by our
named executive officers for Fiscal 2010 (award payments under
the 2010 Cash Incentive Program) was actually paid in April
2011. If the employment agreements had terminated on
January 29, 2011 (the last day of Fiscal 2010), which they
did not, the award payments under
29
the 2010 Cash Incentive Program would still have been paid in
April 2011. The 2010 non-equity incentive compensation would not
have been paid twice. Columns (b) through (f) each
represent a different circumstance under which payments may
potentially be due pursuant to the employment agreements. The
Total in any one column for any one named executive
officer represents that officers maximum potential payment
under the applicable circumstance. The Totals are
independent of one another and not cumulative for any one named
executive officer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termination
|
|
|
|
|
|
|
|
|
|
Termination
|
|
|
|
|
|
by Executive
|
|
|
|
|
|
|
|
|
|
without
|
|
|
|
|
|
without Good
|
|
|
|
|
|
|
|
|
|
Cause by
|
|
|
|
|
|
Reason or as a
|
|
|
|
|
|
Termination
|
|
|
|
Company or
|
|
|
|
|
|
Result of the
|
|
|
Expiration
|
|
|
within 90
|
|
|
|
for Good
|
|
|
Termination
|
|
|
Death or
|
|
|
at the
|
|
|
Days of a
|
|
|
|
Reason by
|
|
|
by Company
|
|
|
Disability of
|
|
|
Election of
|
|
|
Change in
|
|
|
|
Executive
|
|
|
for Cause
|
|
|
Executive
|
|
|
Company
|
|
|
Control
|
|
Name
|
|
($)
|
|
|
($)
|
|
|
($)
|
|
|
($)
|
|
|
($)
|
|
(a)
|
|
(b)
|
|
|
(c)
|
|
|
(d)
|
|
|
(e)
|
|
|
(f)
|
|
|
R. Neal Black
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termination Payment
|
|
|
1,550,000
|
|
|
|
|
|
|
|
|
|
|
|
775,000
|
|
|
|
1,550,000
|
|
2010 Non-Equity Incentive Compensation
|
|
|
1,175,000
|
|
|
|
1,175,000
|
|
|
|
1,175,000
|
|
|
|
1,175,000
|
|
|
|
1,175,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2,725,000
|
|
|
|
1,175,000
|
|
|
|
1,175,000
|
|
|
|
1,950,000
|
|
|
|
2,725,000
|
|
David E. Ullman
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Salary
|
|
|
697,500
|
|
|
|
|
|
|
|
|
|
|
|
697,500
|
|
|
|
|
|
2010 Non-Equity Incentive Compensation
|
|
|
302,250
|
|
|
|
302,250
|
|
|
|
302,250
|
|
|
|
302,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
999,750
|
|
|
|
302,250
|
|
|
|
302,250
|
|
|
|
999,750
|
|
|
|
|
|
Robert B. Hensley
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Salary
|
|
|
490,000
|
|
|
|
|
|
|
|
|
|
|
|
490,000
|
|
|
|
|
|
2010 Non-Equity Incentive Compensation
|
|
|
318,500
|
|
|
|
318,500
|
|
|
|
318,500
|
|
|
|
318,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
808,500
|
|
|
|
318,500
|
|
|
|
318,500
|
|
|
|
808,500
|
|
|
|
|
|
Gary M. Merry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Salary
|
|
|
400,000
|
|
|
|
|
|
|
|
|
|
|
|
400,000
|
|
|
|
|
|
2010 Non-Equity Incentive Compensation
|
|
|
260,000
|
|
|
|
260,000
|
|
|
|
260,000
|
|
|
|
260,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
660,000
|
|
|
|
260,000
|
|
|
|
260,000
|
|
|
|
660,000
|
|
|
|
|
|
James W. Thorne
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Salary
|
|
|
375,000
|
|
|
|
|
|
|
|
|
|
|
|
375,000
|
|
|
|
|
|
2010 Non-Equity Incentive Compensation
|
|
|
243,750
|
|
|
|
243,750
|
|
|
|
243,750
|
|
|
|
243,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
618,750
|
|
|
|
243,750
|
|
|
|
243,750
|
|
|
|
618,750
|
|
|
|
|
|
Notes
to Potential Payments on Termination or Change in Control
Table
Termination
without Cause by Company or for Good Reason by Executive (Column
(b))
Under the terms of the respective employment agreements with our
named executive officers, if the employment period is terminated
by the Company without cause (as defined below) or
by the executive for good reason (as defined below),
the Company will be obligated to make a termination payment, in
addition to paying the executives base salary through the
date of termination. For Mr. Black, the termination payment
is an
agreed-upon
amount payable in one lump sum. For Messrs. Ullman,
Hensley, Merry and Thorne the termination payment is based on
the named executive officers base salary in effect as of
the last day of Fiscal 2010 and is payable in equal weekly
installments over the term corresponding to the amount due.
Mr. Ullman is entitled to 18 months of salary.
Messrs. Hensley, Merry and Thorne are each entitled to
12 months of salary. A named executive officer whose
employment period is terminated by the Company without cause or
by the executive for good reason will also receive any
non-equity incentive compensation which may have been earned
through the date of termination.
30
Without limiting the terms and conditions of the respective
employment agreements between our named executive officers and
the Company, the term cause, as used in the
employment agreements, generally means with respect to each
named executive officer: (a) the conviction of a felony
involving money or other property of the Company or any other
felony or offense involving moral turpitude; (b) the
willful commission of an act not approved of or ratified on
behalf of the Company involving a material conflict of interest
or self-dealing relating to any material aspect of the
Companys business or affairs; (c) the willful
commission of any act of fraud or misrepresentation related to
the business of the Company which would materially and
negatively impact upon the Company; or (d) the willful and
material failure to comply with the lawful orders of the
Company, provided such orders are consistent with the duties,
responsibilities
and/or
authority of his office.
Without limiting the terms and conditions of the respective
employment agreements between our named executive officers and
the Company, the term good reason, as used in the
employment agreements, generally means any material breach by
the Company of any provision of the employment agreement which,
if susceptible of being cured, is not cured within thirty
(30) days after notice. However, the cure period applicable
to any failure timely to pay (or any reduction in) compensation
or benefits paid or payable to the named executive officer
pursuant to the employment agreement is seven (7) days
after delivery of notice thereof to the Company.
Termination
by Company for Cause (Column (c))
Under the terms of the respective employment agreements between
our named executive officers and the Company, if the employment
period is terminated by the Company for cause, the named
executive officer will be paid his base salary through the date
of termination and any non-equity incentive compensation earned
through the date of termination, but is not entitled to any
other payments.
Termination
by Executive without Good Reason or as a Result of the Death or
Disability of Executive (Column (d))
Under the terms of the respective employment agreements between
our named executive officers and the Company, if the employment
period is terminated by the named executive officer without good
reason or as a result of his death or disability, the named
executive officer will be paid his base salary through the date
of termination and any non-equity incentive compensation earned
through the date of termination, but is not entitled to any
other payments.
Expiration
at the Election of Company (Column (e))
Under the terms of the respective employment agreements between
our named executive officers and the Company, in the event the
Company elects not to renew the employment agreement or to
otherwise extend employment on the then current terms for an
additional year, the named executive officer will be entitled to
severance payments. Mr. Black is entitled to receive a
single severance payment of $775,000. Mr. Ullman is
entitled to severance equal to 18 months of base salary and
Messrs. Hensley, Merry and Thorne are each entitled to
severance equal to 12 months of base salary, in each case
payable in equal, weekly installments over the term
corresponding to the amount due. A named executive officer whose
employment agreement is not being renewed by the Company will
also receive any non-equity incentive compensation which may
have been earned for the year ending on the stated expiration
date of the employment period.
Termination
within 90 Days of a Change in Control (Column (f))
Mr. Black may terminate his employment agreement with the
Company at any time within 90 days following a change
in control (as defined below) of the Company. In the event
of such termination, or if the Company terminates the employment
agreement for cause within 90 days following a change in
control, the Company will make the payments to Mr. Black as
set forth above. In the event the employment agreement for one
of the other named executive officers is terminated within
90 days of a change in control, the termination payment
would be calculated based upon the circumstances described in
the notes to columns (b), (c) or (d), as applicable. A
change in control does not affect the calculation of these
termination payments.
31
Without limiting the terms and conditions of
Mr. Blacks employment agreement with the Company, the
term change of control, as used in the employment
agreement, generally means (a) the acquisition by any
person (as defined in the Exchange Act) of
beneficial ownership of 51% or more of the stock of the Company;
(b) the acquisition by any such person of
beneficial ownership of 30% or more of the stock of the Company
and a change in the majority of the Board; or (c) the
merger, consolidation or liquidation of the Company or the sale
or disposition of all or substantially all of the assets of the
Company.
Additional
Notes Regarding Potential Post-Employment Payments and
Obligations
Non-Equity
Incentive Compensation
The employment agreements use the word bonus to
refer to payments which are designated as non-equity
incentive compensation under SEC regulations and in this
Proxy Statement. The employment agreements generally provide
that in the event the employment period ends for any reason
whatsoever on a day prior to payment of any bonus the named
executive officer may have earned for the previous fiscal year,
the Company will pay such bonus to the named executive officer
as and when such bonus would otherwise have been paid had the
employment period not ended. The employment agreements also
generally provide that when and if bonuses are generally paid to
employees of the Company for the fiscal year in which the
termination occurs, the Company will pay to the named executive
officer a pro-rated bonus based on the number of days the named
executive officer was employed by the Company during such fiscal
year. For the purpose of determining eligibility for payment of
a pro-rata bonus, it is assumed that all conditions to payment
of the bonus which were based upon performance by the named
executive officer (e.g., a job performance rating of
Effective or better) were satisfied.
Non-compete
Covenants
Following the termination of an employment agreement, the
applicable named executive officer is generally subject to
non-compete covenants. The period of time during which such
covenants are in effect varies depending upon the circumstances
of termination. Generally, the non-competition term is six
months. If the named executive officer resigns without good
reason, the term is 12 months. If post-termination payments
are being made for longer than the otherwise applicable period,
the non-compete covenants will be effective while such payments
are being made. If the Company terminates Mr. Blacks
employment agreement for cause, the non-competition term is six
months. If the Company elects not to renew Mr. Blacks
employment agreement, the non-competition term is one year. If
the Company terminates Mr. Blacks employment
agreement without cause or Mr. Black terminates his
employment agreement for good reason or within 90 days
following a change in control, the non-competition term is two
years.
PROPOSALS REQUIRING
STOCKHOLDER APPROVAL
PROPOSAL ONE-ELECTION
OF DIRECTORS
The Board consists of seven members and is divided into three
classes. Each class holds office for a term of three years. This
years nominees for director, R. Neal Black and Robert N.
Wildrick, (individually, a Director Nominee and
together, the Director Nominees) are currently
directors of the Company. Each Director Nominee was nominated by
our Nominating and Corporate Governance Committee for reelection
to the Board for a term of three years expiring at the 2014
Annual Meeting of Stockholders. Each director so elected shall
hold office until his or her successor shall be duly elected or
qualified, or until his or her earlier death, resignation or
removal.
If either of the Director Nominees should become unavailable for
election at the time of the Annual Meeting, the shares
represented by the proxies solicited for the Annual Meeting will
be voted for such substitute nominee(s) as may be determined by
the Nominating and Corporate Governance Committee. The Board
expects that both of the Director Nominees will be able to serve
as directors if re-elected at the Annual Meeting. In the
election of directors, you may vote for the Director Nominees or
you may withhold authority with respect to either or both of the
Director Nominees. Unless a stockholder withholds authority on
the proxy
32
card with respect to either or both of the Director Nominees,
the shares represented by the accompanying proxy will be voted
FOR the election of the Director Nominees.
The election of each Director Nominee requires the affirmative
vote of a majority of the total votes cast for and against such
nominee at the Annual Meeting.
Certain information concerning the Director Nominees and those
directors whose terms of office will continue following the
Annual Meeting is set forth below, including their specific
experience, qualifications and skills that led the Board to
conclude that each of those individuals should continue to serve
as a director.
Recommendation
of the Board Of Directors
The Board recommends that the stockholders vote FOR the
election of Mr. Black and Mr. Wildrick.
Director
Nominees Standing for Election for Terms Expiring In
2014
R.
Neal Black
R. Neal Black has served as one of our directors and as our
Chief Executive Officer since December 2008. Mr. Black has
been our President since April 2007. He joined the Company in
January 2000 and served as Executive Vice
President-Merchandising and Marketing from January 2000 to April
2007. In addition, Mr. Black was our Chief Merchandising
Officer from January 2000 to December 2008. Mr. Black has
spent his entire professional career in the retail industry
including: from 1998 to 2000, with McRaes department
stores, a division of Saks Incorporated, as Senior Vice
President/General Merchandise Manager; from 1995 to 1998, with
Venture Stores, Inc., a publicly traded family value retailer,
ending as Senior Vice President of Product Development and
General Merchandise Manager; from 1992 to 1995, with Gottschalks
Department Stores, a regional department store headquartered in
Fresno, California, ending as Vice President/General Merchandise
Manager; from 1983 to 1992, with Design Linens, Inc., a
privately-owned specialty retail chain headquartered in
Portland, Oregon, ending as President; and from 1976 to 1983,
with Meier & Frank, a division of May Department
Stores, ending as a Buyer.
The Board concluded that Mr. Black should continue to serve
as a director in part due to his extensive career in retail. As
our CEO, Mr. Black brings to the Board significant industry
knowledge, senior leadership and expertise in merchandising,
marketing, sales and finance.
Robert
N. Wildrick
Robert N. Wildrick has served as one of our directors since 1994
and is chairman of our Executive Committee. He has served as our
Chairman of the Board since December 2008. From November 1999 to
December 2008, Mr. Wildrick was our Chief Executive
Officer. In addition, he was our President from December 1999 to
April 2007 and our Executive Chairman from April 2007 to
December 2008. Mr. Wildrick is the President Pro Tem of the
Town Council of Palm Beach, Florida and Chairman of its Finance
and Taxation Committee and its Public Safety Committee.
Mr. Wildrick has been a member of the Board of Directors of
Checkpoint Systems, Inc. (NYSE: CKP), a global leader in shrink
management, merchandise visibility and apparel labeling
solutions, since December 2008, where he serves as Chairman of
its Governance and Nominating Committee and a member of its
Audit Committee. Mr. Wildrick was Director, President and
Chief Executive Officer of Venture Stores, Inc., a publicly
traded family value retailer, from April 1995 to May 1998 and
was Chairman of its board of directors from January 1996 to May
1998. From 1976 to April 1995, Mr. Wildrick was employed by
Belk Stores Services, a retailing company, in various
capacities, including Corporate Executive Vice President for
Merchandise and Sales Promotion and Chief Merchandising Officer.
Mr. Wildricks former directorships include Goodwill
Industries, The Pride of Baltimore, Johns Hopkins
Childrens Hospital Advisory Board, The Cystic Fibrosis
Foundation and the Boy Scouts of America where he was a Director
in New York and Charlotte, North Carolina. He has been a sponsor
and fundraiser for the American Heart Association, various
Police Associations and the Boy Scouts where he helped fund
scout camps for children with disabilities.
33
The Board concluded that Mr. Wildrick should continue to
serve as a director in part due to his extensive knowledge of
the Company. Having been a director since 1994,
Mr. Wildrick brings to the Board historic knowledge and
continuity. In addition, as a result of his extensive career in
retail and as our former CEO, Mr. Wildrick brings to the
Board significant industry knowledge and expertise in
merchandising, marketing, sales and finance.
Directors
Whose Terms Expire In 2013
James
H. Ferstl
James H. Ferstl has served as one of our directors since
September 2008. Since its founding in 1999, Mr. Ferstl has
been the principal of J&M Enterprises, a retail consulting,
commercial real estate and personal financial investment firm.
From 1965 to 1999, Mr. Ferstl was employed in various
capacities in the retail industry including: from 1995 to 1999,
as Executive Vice President, Chief Merchandising Officer and
Board member of Venture Stores, Inc., a publicly traded family
value retailer; from 1987 to 1995 Corporate Vice
President-General Merchandise Manager (Home and Hard lines) for
Gottschalks Department Stores, a regional department store
headquartered in Fresno, California; from 1984 to 1987, as
Senior Vice President and General Manager for Platt Electronics
Corp., a consumer electronics business based in Torrance,
California, with responsibility for its 140 store West coast
region; from 1981 to 1984, as Executive Vice President for
Merchandising and Stores Operation and Chief Merchandising
Officer for Broadway Southwest Department Stores, a division of
Carter Hawley Hale Stores Inc. based in Phoenix, Arizona; and
from 1965 to 1981, as Regional Vice President for Stores for
Sanger Harris Department Stores of Dallas, Texas, a Division of
Federated Department Stores Inc.
The Board concluded that Mr. Ferstl should continue to
serve as a director in part due to his extensive career in
retail, which brings to the Board significant industry knowledge
and experience in merchandising, marketing and sales.
Sidney
H. Ritman
Sidney H. Ritman has served as one of our directors since July
2005 and is chairman of our Compensation Committee.
Mr. Ritman is the founder, owner and operator of Toni
Industries, Inc., an importer and seller of womens
clothing. Mr. Ritman was the founder, and from December
2007 through November 2009 the owner and operator, of Giorgio
San Angelo, LLC, an importer and seller of womens
clothing. Mr. Ritman has an extensive background in
international sourcing for U.S. and European apparel
retailers, including fifteen years in residence in Hong Kong as
the Managing Director of Armstrong Industries, Ltd., a sourcing
agent which had offices in seven countries. In 1987,
Mr. Ritman organized the sale of Armstrong to Colby Staton
Ltd., a Hong Kong-based sourcing company, for which
Mr. Ritman served as a consultant and director until 1997.
Mr. Ritman is a former trustee of Rollins College, Winter
Park, Florida and The Brunswick School, Greenwich, Connecticut.
Mr. Ritman is a former United States Marine Corps officer,
having served on active duty and in the Marine Corps Reserve for
nine years.
The Board concluded that Mr. Ritman should continue to
serve as a director in part due to his extensive career in
apparel retailing and sourcing, which brings to the Board
significant experience in these areas.
Directors
Whose Terms Expire In 2012
Andrew
A. Giordano
Andrew A. Giordano has served as one of our directors since 1994
and is chairman of our Nominating and Corporate Governance
Committee. He served as our interim Chief Executive Officer from
May 1999 to October 1999. Mr. Giordano also served as
Chairman of the Board from May 1999 to December 2008, at which
time he became Chairman Emeritus. Mr. Giordano continues to
serve as Lead Independent Director, a position he assumed in
November 1999. Mr. Giordano has been the principal of The
Giordano Group, Limited, a diversified consulting firm, since
its founding in February 1993. He also serves as Chairman of the
Compensation Committee of Dale Carnegie, a privately owned
provider of personal advancement training,
34
where he has been a Director since 2001. Since January 2009,
Mr. Giordano has been a director of Hurd Windows and Doors
of Wausau, Wisconsin, a privately owned manufacturer and
retailer. Mr. Giordano retired from his position as CEO,
Naval Supply Systems Command and Chief, Navy Supply Corps with
the rank of Rear Admiral. He is a former director of the Navy,
Marine Corps Residence Foundation, the Navy Memorial Foundation
and the Navy Federal Credit Union.
The Board concluded that Mr. Giordano should continue to
serve as a director in part due to his extensive knowledge of
the Company. Having been a director since 1994,
Mr. Giordano brings to the Board historic knowledge and
continuity. In addition, his substantial leadership and
organizational skills provide valuable perspective on the
complex operations of a multi-location, multi-channel retailer
such as the Company.
William
E. Herron
William E. Herron has served as one of our directors since April
2005 and is chairman of our Audit Committee. Since January 2002,
Mr. Herron has been self-employed as a strategic consultant
to companies seeking to initiate business with the federal
government. From 1982 through December 2001, Mr. Herron was
a partner in Arthur Andersen, having served in its Accounting
and Audit practice from 1982 until 1994 and in its Business
Consulting practice from 1995 until 2001. Among his other duties
with Arthur Andersen, Mr. Herron was the Managing Partner
of the firms Office of Government Services.
Mr. Herron was a licensed CPA for over 30 years and is
a current member of the American Institute of Certified Public
Accountants and Pennsylvania Institute of Certified Public
Accountants. He has served on the boards of directors of several
privately held companies including as chair of an audit
committee. He has been active for over 30 years on boards
of civic and charitable institutions. Mr. Herron is a
retired Rear Admiral from the U.S. Naval Reserve.
The Board concluded that Mr. Herron should continue to
serve as a director in part due to his extensive career in
public accounting, which brings to the Board significant
auditing and accounting experience.
Henry
Homes, III
Henry Homes, III, has served as one of our directors since
September 2008. Since 1986, Mr. Homes has been the
president and chief executive officer of Homesco, Inc., a
general business consulting firm with emphasis on logistics and
commercial relocation companies. From 1989 through March 2008,
Mr. Homes was the chief executive officer of Maryland
Office Relocators, a regional relocation and logistics company
operating in the Mid-Atlantic region of the United States.
Mr. Homes served as president of the Ruxton, Riderwood,
Lake Roland Improvement Association from 2000 through 2002 and
has served on multiple civic and charitable boards and
committees.
The Board concluded that Mr. Homes should continue to serve
as a director in part due to his extensive career in logistics,
which brings to the Board significant experience in this area.
PROPOSAL TWO-RATIFICATION
OF REGISTERED PUBLIC ACCOUNTING FIRM
The Audit Committee appointed Deloitte to serve as our
independent registered public accounting firm for Fiscal 2011.
The affirmative vote of a majority of the votes cast at the
Annual Meeting on Proposal Two, either in person or by
proxy, and entitled to vote is required to ratify the selection
of Deloitte. Deloitte has served as the Companys
independent registered public accounting firm since 2004. One or
more representatives of Deloitte are expected to be present at
the Annual Meeting and will be available to respond to
appropriate questions from stockholders and to make such
statements as they may desire.
In the event the stockholders fail to ratify the appointment of
Deloitte, the Audit Committee may reconsider its selection. Even
if the selection is ratified, the Audit Committee in its
discretion may direct the appointment of a different registered
public accounting firm at any time during the year if the Audit
Committee believes that such a change would be in our best
interests and in the best interests of our stockholders.
35
Recommendation
of the Board of Directors
The Board recommends that the stockholders vote FOR the
ratification of the appointment of Deloitte & Touche
LLP to serve as our registered public accounting firm for Fiscal
2011.
Audit
and Non-Audit Fees
The fees for services rendered by Deloitte and its affiliates to
the Company for Fiscal 2009 and Fiscal 2010 were as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2009
|
|
|
Fiscal 2010
|
|
Type of Fee
|
|
($)
|
|
|
($)
|
|
|
Audit
Fees
(1)
|
|
|
843,500
|
|
|
|
855,900
|
|
Audit-Related
Fees
(2)
|
|
|
50,100
|
|
|
|
45,500
|
|
Tax
Fees
(3)
|
|
|
122,800
|
|
|
|
382,200
|
|
All Other
Fees
(4)
|
|
|
2,000
|
|
|
|
2,200
|
|
|
|
|
|
|
|
|
|
|
Total Fees
|
|
|
1,018,400
|
|
|
|
1,285,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Audit fees represent the aggregate fees for the stated fiscal
year for professional services rendered for the audit of the
Companys annual financial statements and the audit of the
Companys internal control over financial reporting as
required by Section 404 of the Sarbanes-Oxley Act, review
of financial statements included in the Companys Quarterly
Reports on
Form 10-Q
and services that are normally provided by the accountant in
connection with certain statutory and regulatory filings or
engagements.
|
|
(2)
|
|
Audit-related fees represent the aggregate fees for a limited
scope audit for one retirement plan in each of Fiscal 2009 and
Fiscal 2010, fees for consents in franchise offerings in Fiscal
2009 and fees for consents in
Form S-8
filings in Fiscal 2010.
|
|
(3)
|
|
Tax fees represent the aggregate fees for the stated fiscal year
for tax compliance, tax advice and tax planning.
|
|
(4)
|
|
All other fees include the aggregate fees for the stated fiscal
year for products and services provided by the principal
accountant other than the services reported above. All other
fees for Fiscal 2009 and Fiscal 2010 are subscription fees for
access to Deloittes on-line research database.
|
Pre-Approval
Policies and Procedures
The Audit Committee pre-approves all auditing services and
permitted non-audit services to be performed for the Company by
its registered public accounting firm, subject to the
de
minimis
exceptions for non-audit services described in
Section 10A(i)(1)(B) of the Exchange Act. The Audit
Committee approved all such services prior to the auditors
engagement for such services during Fiscal 2009 and Fiscal 2010.
Audit
Committee Report
The Audit Committee oversees the responsibilities of the Board
relating to: (a) the integrity of our financial statements;
(b) the qualifications and independence of our registered
public accounting firm; (c) the performance of our internal
audit functions and our registered public accounting firm;
(d) the adequacy of our systems of internal accounting and
financial controls; and (e) our compliance with ethics
policies and legal and regulatory requirements.
Deloitte was the principal accountant engaged to audit the
financial statements of the Company for Fiscal 2010. The Audit
Committee has reviewed and discussed those audited financial
statements with the Companys management and Deloitte. The
Audit Committee has also discussed with Deloitte the matters
required to be discussed by Statement on Auditing Standards
No. 61, as amended (AICPA, Professional Standards, Vol.1.
AU Section 380), as adopted by the Public Company
Accounting Oversight Board (the PCAOB) in
Rule 3200T.
The Audit Committee has received the written disclosures and the
letter from Deloitte required by applicable requirements of the
PCAOB regarding Deloittes communications with the Audit
Committee
36
concerning Deloittes independence, and the Audit Committee
has discussed with Deloitte the independence of Deloitte from
Jos. A. Bank.
Based on the foregoing review and discussions, the Audit
Committee recommended to the Board that the Companys
audited financial statements be included in the Companys
Annual Report on
Form 10-K
for Fiscal 2010 for filing with the SEC.
Respectfully submitted, Audit Committee:
William E. Herron (Chairman)
Andrew A. Giordano
Sidney H. Ritman
PROPOSAL THREE-ADVISORY
VOTE ON EXECUTIVE COMPENSATION
The Dodd-Frank Wall Street Reform and Consumer Protection Act,
enacted in July 2010, requires that we provide our stockholders
with the opportunity to vote to approve, on a nonbinding,
advisory basis, the compensation of our named executive officers
as disclosed in this proxy statement. This Say on
Pay vote is not intended to address any specific item of
compensation, but rather the overall compensation of our named
executive officers and our compensation philosophy, policies and
practices.
As described in the Compensation Discussion and Analysis (the
CD&A) set forth in this Proxy Statement under
the caption Executive Compensation and Related
Information, we believe that our Compensation Committee
applies a consistent philosophy to compensation for our named
executive officers based on the premise that the Companys
achievements are the result of the coordinated efforts of all of
our employees working toward common objectives. We strive to
achieve those objectives through teamwork that is focused on
meeting the expectations of our customers and stockholders and
believe that our compensation program allows us to successfully
attract and retain talented employees, enhance stockholder value
and foster innovation. We urge you to read the Executive
Compensation and Related Information section of this proxy
statement for additional details on our executive compensation,
including our compensation philosophy and objectives and the
Fiscal 2010 compensation of our named executive officers.
Despite a continuing challenging economic environment, the
Companys net income in Fiscal 2010 was approximately
$85.8 million, an increase of 20.6% over the net income in
Fiscal 2009. This result follows a 21.8% increase in net income
in Fiscal 2009 and a 16.4% increase in net income in Fiscal
2008. Shareholders have been rewarded with above-average returns
on their investment in the Company relative to other companies
in the retail sector. For the Retailing industry group
(2550) within the Global Industry Classification System
(GICS), the median one year total shareholder return was 27.48%,
compared to the Companys one year total shareholder return
of 43.35% and the median three year total shareholder return was
8.62%, compared to the Companys three year total
shareholder return of 28.58%.
The Companys compensation policy includes a strict pay for
performance incentive system. As more fully set forth above in
this Proxy Statement under the captions Non-Equity
Incentive Compensation and Equity Incentive
Compensation, the named executive officers have the
opportunity to earn cash and equity incentives only if the
Companys net income increases on a
year-over-year
basis. The Companys net income in Fiscal 2010 exceeded the
high-end of the eligibility range set by the Companys
Compensation Committee for awards to the named executive
officers under the Companys 2010 Cash Incentive Program
and 2010 Equity Incentive Program and therefore the named
executive officers earned the maximum bonuses for which they
were eligible. We believe that the compensation paid to our
named executive officers in Fiscal 2010 was appropriate due to
the Companys achievement of strong operating and financial
results and our named executive officers contribution to
our success.
In light of the foregoing considerations, we are asking our
stockholders to indicate their approval, on an advisory basis,
of the compensation of our named executive officers as disclosed
in this Proxy Statement. This
37
Proposal is required pursuant to Section 14A of the
Exchange Act. Accordingly, we ask that our stockholders vote
FOR the following resolution:
RESOLVED, that the compensation paid to the Companys
named executive officers, as disclosed pursuant to Item 402
of
Regulation S-K,
including the Compensation Discussion and Analysis, the
compensation tables, and the related narrative disclosure set
forth under the caption Executive Compensation and Related
Information in this Proxy Statement, is hereby
APPROVED.
While our Board intends to carefully consider the stockholder
vote resulting from this proposal when making future decisions
regarding our executive compensation programs, the final vote is
advisory, which means that it is not binding on the Company, our
Board or the Compensation Committee.
Recommendation
of the Board of Directors
The Board recommends that the stockholders vote FOR the
foregoing resolution approving the compensation of our named
executive officers, as disclosed in this Proxy Statement.
PROPOSAL FOUR ADVISORY
VOTE ON FREQUENCY OF EXECUTIVE COMPENSATION VOTE
This Proposal Four, our Say When on Pay
proposal, gives you as a stockholder the opportunity to inform
the Company as to how often you wish the Company to include a
Say on Pay proposal, similar to Proposal Three,
in our proxy statements for future annual stockholder meetings
(or special stockholder meetings for which the Company must
include executive compensation information in the proxy
statement for that meeting). This proposal is required pursuant
to Section 14A of the Securities Exchange Act, which
requires that stockholders be given the opportunity, at least
once every six years, to have a separate vote to re-determine
the frequency of the Say on Pay vote. Under this
Proposal Four, stockholders may vote
1 year, 2 years,
3 years or may abstain from voting on the
frequency of future executive compensation votes. While our
Board of Directors intends to carefully consider the stockholder
vote resulting from the proposal, the final vote will not be
binding on us and is advisory in nature.
The Board has carefully considered the advantages and
disadvantages of each frequency option and has determined that
an advisory vote on executive compensation every year is the
best approach for the Company. By presenting an annual Say
on Pay proposal, the advisory vote will correspond to the
compensation information presented in the proxy statement for
the most current year. This will allow our stockholders to
provide timely, direct input on the Companys most current
executive compensation philosophy, policies and practices and
allow the Board to better understand which pay practices lead to
the shareholders recommendation. The Company recognizes
that the stockholders may have different views as to the best
approach for the Company, and therefore we look forward to
hearing from our stockholders as to their preferences on the
frequency of an advisory vote on executive compensation.
To be clear, you are not being asked to ratify the determination
of the Board or to approve or disapprove the recommendation of
the Board. Rather, you are being asked to inform the Company, on
an advisory basis, as to how often you wish the Company to
include a Say on Pay proposal, similar to
Proposal Three, in our future proxy statements. You may
vote 1 year, 2 years,
3 years or may abstain from voting on the
frequency of future executive compensation votes.
Recommendation
of the Board of Directors
The Board of Directors recommends that the stockholders vote
1 YEAR for the frequency of future executive
compensation votes.
38
OTHER
MATTERS
TRANSACTIONS
WITH RELATED PERSONS
On September 9, 2008, the Company and Mr. Wildrick
entered into a Consulting Agreement (the Consulting
Agreement) pursuant to which the Company retained
Mr. Wildrick to consult on matters of strategic planning
and initiatives for a term of three years commencing
February 1, 2009 at a fee of $825,000 per year. On
November 30, 2010, those members of the Board who are
independent directors in accordance with the Nasdaq
Rules met in executive session and approved an amendment to the
Consulting Agreement. As Mr. Wildrick is the Chairman of
the Board and the amendment constitutes a related party
transaction, generally the Audit Committee would have been
responsible for evaluating the transaction. The Board instead
met in executive session in order to increase the number of
independent directors who participated in the decision. The
First Amendment to Consulting Agreement extends the term of the
Consulting Agreement to January 26, 2014. All other terms
of the Consulting Agreement remain unchanged.
The Consulting Agreement includes an agreement by
Mr. Wildrick not to compete with the Company or to solicit
its customers or employees during its term. The Consulting
Agreement also provides for the acceleration of payments due
thereunder to Mr. Wildrick in connection with certain
termination events. If Mr. Wildricks services are
terminated by the Company without cause (as defined
below), the Company will be obligated to pay Mr. Wildrick
the balance of amounts due under the Consulting Agreement for
its remaining term as and when such payments would otherwise be
due. If Mr. Wildricks services are terminated by the
Company with cause, the Company will be obligated to
pay Mr. Wildrick the unpaid, prorated amount of the
consulting fees payable through the date of termination. For
purposes of the Consulting Agreement, cause means:
(a) the conviction of Mr. Wildrick of a felony
involving money or other property of the Company or any other
felony or offense involving moral turpitude; or (b) the
willful commission of any act of fraud or misrepresentation
related to the business of the Company which would materially
and negatively impact the Company. If within ninety
(90) days following a change of control of the Company
(defined consistently with Mr. Blacks employment
agreement), Mr. Wildrick exercises his right to terminate
the Consulting Agreement or the Company terminates the
Consulting Agreement based on a default thereunder by
Mr. Wildrick, the Company will pay Mr. Wildrick a lump
sum equal to the balance of amounts due under the Consulting
Agreement for its remaining term.
COMPENSATION
COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
The Compensation Committee consists of Messrs. Herron,
Homes and Ritman. During Fiscal 2010, no interlocking
relationship existed between the members of our Compensation
Committee and the board of directors or compensation committee
of any other company and the members of the Compensation
Committee did not otherwise have any relationships requiring
related-party disclosure in this Proxy Statement.
39
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
The following table sets forth information known to us with
respect to the beneficial ownership of our common stock as of
April 29, 2011 by (a) each named executive officer;
(b) each director; (c) all directors and executive
officers as a group; and (d) each person (or group) that
beneficially owns more than 5% of our common stock. Unless
otherwise indicated, each of the stockholders can be reached at
our principal executive offices located at 500 Hanover Pike,
Hampstead, Maryland 21074.
|
|
|
|
|
|
|
|
|
|
|
Shares Beneficially
|
|
|
|
Owned*
|
|
|
|
Number
|
|
|
Percent
|
|
|
R. Neal
Black
(1)
|
|
|
162,573
|
|
|
|
**
|
|
James H.
Ferstl
(2)
|
|
|
5,250
|
|
|
|
**
|
|
Andrew A.
Giordano
(3)
|
|
|
53,710
|
|
|
|
**
|
|
Robert B.
Hensley
(4)
|
|
|
51,605
|
|
|
|
**
|
|
William E.
Herron
(5)
|
|
|
19,690
|
|
|
|
**
|
|
Henry
Homes, III
(6)
|
|
|
10,650
|
|
|
|
**
|
|
Gary M. Merry
|
|
|
15,000
|
|
|
|
**
|
|
Sidney H.
Ritman
(7)
|
|
|
18,041
|
|
|
|
**
|
|
James W.
Thorne
(8)
|
|
|
21,091
|
|
|
|
**
|
|
David E.
Ullman
(9)
|
|
|
163,590
|
|
|
|
**
|
|
Robert N.
Wildrick
(10)
|
|
|
49,452
|
|
|
|
**
|
|
FMR
LLC
(11)
|
|
|
4,081,973
|
|
|
|
14.78
|
%
|
Royce & Associates,
LLC
(12)
|
|
|
3,024,529
|
|
|
|
10.95
|
%
|
BlackRock,
Inc.
(13)
|
|
|
2,138,531
|
|
|
|
7.74
|
%
|
Goldman
Sachs
(14)
|
|
|
2,019,473
|
|
|
|
7.31
|
%
|
All directors and executive officers as a group
(11 persons)
(15)
|
|
|
570,652
|
|
|
|
2.04
|
%
|
|
|
|
*
|
|
If indicated by footnote, the number of shares beneficially
owned includes shares of our common stock issuable upon the
exercise of all options exercisable, and the number of
restricted stock units which will vest, within 60 days of
April 29, 2011. Beneficial ownership is determined in
accordance with the rules of the SEC and includes voting and/or
investment power with respect to shares. Unless otherwise
indicated, the persons named in the table have sole voting and
sole investment control with respect to all shares beneficially
owned. Percentage ownership is calculated based on
27,626,304 shares of our common stock outstanding as of
April 29, 2011, plus the number of options exercisable by,
and the number of restricted stock units which will vest in, the
applicable individual(s) within 60 days of April 29,
2011. To our knowledge and based on reviews of Forms 4 and
Schedules 13D and Schedules 13G filed with the SEC, except as
disclosed in this table, no other stockholder beneficially owned
more than 5% of our outstanding shares of common stock as of
April 29, 2011.
|
|
**
|
|
Represents less than 1%.
|
|
(1)
|
|
Mr. Blacks shares include currently exercisable
options to purchase 78,261 shares of common stock and
19,512 shares deliverable by the Company within
60 days of April 29, 2011 as a result of the vesting
of Performance RSUs granted to Mr. Black under the 2010
Equity Compensation Plan.
|
|
(2)
|
|
Mr. Ferstls shares include 3,750 restricted stock
units which will vest within 60 days of April 29,
2011. Receipt of the shares of common stock underlying the
restricted stock units has been deferred until
Mr. Ferstls separation from service as a member of
the Board.
|
|
(3)
|
|
Mr. Giordanos shares include 3,750 restricted stock
units which will vest within 60 days of April 29,
2011. Receipt of the shares of common stock underlying the
restricted stock units has been deferred until
Mr. Giordanos separation from service as a member of
the Board.
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(4)
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Mr. Hensleys shares include currently exercisable
options to purchase 27,349 shares of common stock.
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(5)
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Mr. Herrons shares include currently exercisable
options to purchase 7,000 shares of common stock and 3,750
restricted stock units which will vest within 60 days of
April 29, 2011. Receipt of the shares of
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40
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common stock underlying the restricted stock units has been
deferred until Mr. Herrons separation from service as
a member of the Board.
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(6)
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Mr. Homes shares include (a) 2,100 shares
held in trusts for the benefit of his children and of which his
wife is a trustee; (b) 600 shares owned by his wife
directly; (c) 3,000 shares held by a family
partnership of which Mr. Homes is a beneficiary and over
which Mr. Homes has shared voting and investment power; and
(d) an indirect beneficial interest in 1,050 shares of
common stock held in a trust of which Mr. Homes is a
trustee and beneficiary. Mr. Homes shares also
include 3,750 restricted stock units which will vest within
60 days of April 29, 2011. Receipt of the shares of
common stock underlying the restricted stock units has been
deferred until Mr. Homes separation from service as a
member of the Board.
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(7)
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Mr. Ritmans shares include 3,750 restricted stock
units which will vest within 60 days of April 29, 2011
and 2,242 currently vested stock units in the 2010 Deferred
Compensation Plan. Receipt of the shares of common stock
underlying the restricted stock units and the vested stock units
has been deferred until Mr. Ritmans separation from
service as a member of the Board.
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(8)
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Mr. Thornes shares include currently exercisable
options to purchase 17,577 shares of common stock.
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(9)
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Mr. Ullmans shares include currently exercisable
options to purchase 158,201 shares of common stock.
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(10)
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Mr. Wildricks shares include 3,750 restricted stock
units which will vest within 60 days of April 29,
2011. Receipt of the shares of common stock underlying the
restricted stock units has been deferred until
Mr. Wildricks separation from service as a member of
the Board.
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(11)
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The information in the table above and in this footnote is based
on a Schedule 13G (Amendment No. 5) filed by FMR
LLC (FMR) with the SEC on February 14, 2011. As
described in that amended Schedule 13G, various persons
have the right to receive or the power to direct the receipt of
dividends from, or the proceeds from the sale of, common stock.
The interest of one person, Fidelity Low-Priced Stock Fund, an
investment company registered under the Investment Company Act
of 1940, in the common stock amounted to 2,737,500 shares
or 9.911% of the total outstanding common stock. The address of
FMR is 82 Devonshire Street, Boston, Massachusetts 02109.
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(12)
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The information in the table above and in this footnote is based
on a Schedule 13G filed by Royce & Associates,
LLC with the SEC on January 6, 2011. The address of
Royce & Associates, LLC is 745 Fifth Avenue, New
York, New York 10151.
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(13)
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The information in the table above and in this footnote is based
on a Schedule 13G (Amendment No. 1) filed by
BlackRock, Inc. with the SEC on February 4, 2011. The
address of BlackRock, Inc. is 40 East 52nd Street, New York, NY
10022.
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(14)
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The information in the table above and in this footnote is based
on a Schedule 13G filed by Goldman Sachs Assets Management,
L.P. and GS Investment Strategies, LLC (collectively,
Goldman Sachs Assets Management) with the SEC on
February 11, 2011. Clients of the Reporting Person(s) have
or may have the right to receive or the power to direct the
receipt of dividends from, or the proceeds from the sale of,
securities held in their accounts. No such clients are known to
have such right or power with respect to more than 5% of the
common stock. The address of Goldman Sachs Assets Management is
200 West Street, New York, NY 10282.
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(15)
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Consists of: R. Neal Black, James H. Ferstl, Andrew A. Giordano,
Robert B. Hensley, William E. Herron, Henry Homes, III,
Gary M. Merry, Sidney H. Ritman, James W. Thorne, David E.
Ullman and Robert N. Wildrick.
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SECTION 16(a)
BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Exchange Act requires the
Companys officers and directors, persons who beneficially
own more than ten percent of a registered class of the
Companys equity securities, and any other person subject
to Section 16 to file reports of beneficial ownership of
common stock (Forms 3, 4 and 5) with the SEC.
Officers, directors, and
greater-than-ten
percent stockholders are required to furnish the Company with
copies of all such forms that they file.
To the Companys knowledge, based solely on the
Companys review of the copies of Section 16 reports,
and amendments thereto, received by it during or with respect to
Fiscal 2010, all filings applicable to its officers, directors
and
greater-than-ten
percent stockholders required by Section 16(a) were timely
except that
41
(a) on December 10, 2010, Mr. Ritman filed a
Form 4 to report the receipt of approximately 934 phantom
stock units held for Mr. Ritman in the 2010 Deferred
Compensation Plan, which units were awarded to Mr. Ritman
in lieu of Board fees which Mr. Ritman otherwise would have
earned in cash; (b) on April 15, 2011, Mr. Ritman
filed a Form 4 to report the receipt of approximately 170
phantom stock units held for Mr. Ritman in the 2010
Deferred Compensation Plan, which units were awarded to
Mr. Ritman in lieu of Board fees which Mr. Ritman
otherwise would have earned in cash; and (c) on
April 8, 2010, Mr. Homes filed a Form 3/A to
report the indirect beneficial ownership of 5,400 shares of
Company stock held by or for the benefit of various members of
his immediate family. The beneficial ownership of these shares
was inadvertently omitted from Mr. Homes original
Form 3.
EQUITY
COMPENSATION PLAN INFORMATION
The table which follows contains information, as of the end of
Fiscal 2010, on the Companys equity compensation plans.
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Number of Securities
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Number of
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Remaining Available for
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Securities to be
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Future Issuance Under
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Issued Upon Exercise
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Weighted-Average
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Equity Compensation
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of Outstanding
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Exercise Price of
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Plans (Excluding
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Options, Warrants
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Outstanding Options,
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Securities Reflected in
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and Rights
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Warrants and Rights
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Column (a))
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(#)
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($)
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(#)
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Plan Category
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(a)
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(b)
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(c)
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Equity compensation plans approved by our
stockholders
(1)
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390,419
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5.73
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Equity compensation plans not approved by our stockholders
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Total
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390,419
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5.73
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(1)
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Restricted Stock Units that may be settled in shares of our
common stock are included in column (a) of the table, but
are not included in column (b) for purposes of determining
the weighted average exercise price of stock options. The
weighted average exercise price in column (b) of the table
reflects all such stock options.
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OTHER
BUSINESS
Except as described in the accompanying Notice of Meeting, the
Board knows of no business that will come before the Annual
Meeting for action. If any business other than as described in
the accompanying Notice of Meeting were to come before the
Annual Meeting for action, the persons designated as proxies
will have discretionary authority to act in their best judgment.
The Board encourages you to have your shares voted at the Annual
Meeting by signing and returning the enclosed form of proxy or
voting instruction card. The fact that you will have returned
your proxy or voting instruction card in advance will in no way
affect your right to vote in person should you attend the Annual
Meeting. However, by signing and returning the proxy or voting
instruction card you have assured your representation at the
Annual Meeting. Thank you for your cooperation.
Notwithstanding anything to the contrary set forth in any of
the Companys previous filings made under the Securities
Act of 1933, as amended, or the Exchange Act that might
incorporate future filings made by the Company under those
statutes, the Compensation Committee Report, the Audit Committee
Report and disclosures regarding the Audit Committee charter are
not deemed filed with the Securities and Exchange Commission and
shall not be deemed incorporated by reference into any future
filings made by the Company under those statutes.
THE BOARD HOPES THAT YOU WILL ATTEND THE ANNUAL MEETING. WHETHER
OR NOT YOU PLAN TO ATTEND, YOU ARE URGED TO COMPLETE, DATE, SIGN
AND RETURN THE ENCLOSED PROXY OR VOTING INSTRUCTION CARD IN
THE ACCOMPANYING ENVELOPE. YOUR PROMPT RESPONSE WILL GREATLY
FACILITATE ARRANGEMENTS FOR THE ANNUAL MEETING. YOUR COOPERATION
IS APPRECIATED.
42
JOS. A. BANK CLOTHIERS, INC. 500 HANOVER PIKE HAMPSTEAD, MD 21074-2095
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 cut-off date or 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 cut-off date or 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. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: KEEP THIS
PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY THIS PROXY CARD IS VALID ONLY WHEN
SIGNED AND DATED. For Withhold For All To withhold authority to vote for any All All Except
individual nominee(s), mark For All Except and write the number(s) of the The Board of Directors
recommends you vote nominee(s) on the line below. FOR the following: 0 0 0 1. Election of Directors
Nominees 01 R. Neal Black 02 Robert N. Wildrick The Board of Directors recommends you vote FOR
proposals 2 and 3. For Against Abstain 2. Ratification of the appointment of Deloitte & Touche LLP
as the Companys registered public accounting firm for the fiscal 0 0 0 year ending January 28,
2012. 3. An advisory vote on executive compensation. 0 0 0 The Board of Directors recommends you
vote 1 YEAR on the following proposal: 1 year 2 years 3 years Abstain 4. An advisory vote on the
frequency of future executive compensation votes. 0 0 0 0 NOTE: Election of R. Neal Black and
Robert N. Wildrick as Directors for terms expiring at the Companys 2014 Annual Meeting of
Stockholders, or at such later time as their respective successors have been duly elected and
qualified. R1.0.0.11699 1 Please sign exactly as your name(s) appear(s) hereon. When signing as
0000108680 attorney, executor, administrator, or other fiduciary, please give full title as such.
Joint owners should each sign personally. All holders must sign. If a corporation or partnership,
please sign in full corporate or partnership name, by authorized officer. Signature [PLEASE SIGN
WITHIN BOX] Date Signature (Joint Owners) Date
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Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Notice &
Proxy Statement, and Annual Report on Form 10-K is/are available at www.proxyvote.com . JOS. A.
BANK CLOTHIERS, INC. Annual Meeting of Stockholders June 17, 2011 10:00 AM This proxy is solicited
by the Board of Directors The undersigned hereby appoints R. Neal Black and Charles D. Frazer, and
each of them, as Proxy or Proxies of the undersigned, each with full power of substitution and
resubstitution, to attend and represent the undersigned at the annual meeting of stockholders of
Jos. A. Bank Clothiers, Inc. to be held at the Companys headquarters, 500 Hanover Pike, Hampstead,
Maryland 21074, on June 17, 2011 at 10:00 a.m. Eastern Time, or at any adjournments or
postponements thereof, and vote thereat the number of shares of stock of the Company which the
undersigned would be entitled to vote if personally present, in accordance with the instructions
set forth on this proxy card, and in their discretion (or the discretion of either of them) on all
other matters properly coming before the meeting or any adjournments or postponements thereof. When
properly executed, this Proxy will be voted as directed. If no direction is made, this Proxy will
be voted FOR Mr. Black and Mr. Wildrick; FOR the ratification of the appointment of Deloitte &
Touche LLP; FOR the approval of the advisory vote on executive compensation; and 1 YEAR on the
advisory vote on the frequency of future executive compensation votes. R1.0.0.11699 2 0000108680
Continued and to be signed on reverse side
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