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not vote these shares in
person at the Annual Meeting unless you obtain a legal proxy from the
broker, trustee or nominee that holds your shares, giving you the right to
vote the shares at the Annual Meeting.
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How do I vote my shares in person at the Annual Meeting?
Shares
held in your name as the shareowner of record may be voted in person at the
Annual Meeting. Shares for which you are the beneficial owner but not the
shareowner of record may be voted in person at the Annual Meeting only if you
obtain a legal proxy from the broker, trustee, or other nominee that holds your
shares giving you the right to vote the shares. Even if you plan to attend the
Annual Meeting, we recommend that you vote by proxy as described below so that
your vote will be counted if you later decide not to attend the Annual Meeting.
The
vote you cast in person will supersede any previous votes that you submitted,
whether by Internet, phone, or mail.
How do I vote my shares in the 401(k) plan?
You
may instruct the plan trustee on how to vote your shares in the 401(k) plan by
mail, by telephone, or on the Internet as described above, except that, if you
vote by mail, the card that you use will be a voting instruction card rather
than a proxy card. If you own shares through the 401(k) Plan and you do not
vote, the 401(k) Plan trustee will vote the shares in the same proportion as
other 401(k) Plan participants vote their 401(k) Plan shares.
How can I vote my shares without attending the Annual
Meeting?
Whether
you hold shares directly as a shareowner of record or through a broker,
trustee, or other nominee, you may direct how your shares are voted without
attending the Annual Meeting. You may give voting instructions by the Internet,
by telephone, or by mail. Instructions are on the proxy card. The appropriate
individuals named on the enclosed proxy card will vote all properly executed
proxies that are delivered in response to this solicitation, and not later
revoked, in accordance with the instructions given by you.
How will my voting instructions be treated?
If
you provide specific voting instructions, your shares will be voted as
instructed.
If
you hold shares as the shareowner of record and sign and return a proxy card or
vote by telephone or Internet without giving specific voting instructions, then
your shares will be voted as recommended by our Board of Directors.
If
you are the beneficial owner of shares held through a broker, trustee, or other
nominee, and that nominee has discretion to vote your shares on a particular
proposal and you do not give instructions to that nominee on how you want your
shares voted, then generally your nominee can vote your shares on certain
routine matters. At our Annual Meeting, only Proposal No. 2 to ratify the
Companys auditors is considered routine, which means that your broker,
trustee, or other nominee can vote your shares on Proposal No. 2 if you do not
timely provide instructions to vote your shares.
If
you are the beneficial owner of shares held through a broker, trustee, or other
nominee, and that nominee does not have discretion to vote your shares on a
particular proposal and you do not give your broker instructions on how to vote
your shares, then the votes will be considered broker nonvotes. A broker
nonvote will be treated as unvoted for purposes of determining approval for
the proposal and will have the effect of neither a vote for nor a vote against
the proposal.
What is the deadline for voting my shares?
If
you hold shares as the shareowner of record, then your vote by proxy must be
received before 11:59 p.m., Eastern Time, on April 23, 2012 (the day before the
Annual Meeting).
If
you are the beneficial owner of shares held through a broker, trustee, or other
nominee, please follow the instructions provided by your broker, trustee, or
other nominee.
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Can I change my vote?
Yes,
if you are a shareowner of record, you may revoke your proxy by submitting a
later proxy or by written request received by our corporate secretary before
the Annual Meeting. You may also revoke your proxy at the Annual Meeting and
vote in person. If you are the beneficial owner of shares held through a
broker, trustee, or other nominee, you should review the information provided
to you by the holder of record that explains how to revoke previously given
instructions.
Who pays for soliciting proxies?
Proxies
will be solicited from our shareowners by mail or e-mail. We will pay all
expenses in connection with the solicitation, including postage, printing and
handling, and the expenses incurred by brokers, custodians, nominees and
fiduciaries in forwarding proxy material to beneficial owners. We may employ a
proxy solicitation firm to solicit proxies in connection with the Annual
Meeting, and we estimate that the fee payable for such services would be less
than $10,000. It is possible that our directors, officers and other employees
may make further solicitations personally or by telephone, facsimile, mail, or
e-mail. Our directors, officers and other employees will receive no additional
compensation for any such further solicitations.
What does it mean if I get more than one Notice of Internet
Availability of Proxy Materials or more than one paper copy of the proxy
materials?
You
will receive a Notice of Internet Availability of Proxy Materials or proxy card
for each account you have. Please vote proxies for all accounts to ensure that
all your shares are voted.
Where can I find voting results of the Annual Meeting?
We
will announce preliminary voting results at the Annual Meeting and publish
preliminary, and if available, final voting results in a current report on Form
8-K filed within four business days of our Annual Meeting.
GOVERNING PRINCIPLES
We
are a bank holding company managed by a core group of officers and governed by
a Board of Directors. We are committed to maintaining a business atmosphere
where only the highest ethical standards and integrity prevail. An unwavering
adherence to high ethical standards provides a strong foundation on which our
business and reputation can thrive, and is integral to creating and sustaining
a successful, high-caliber company.
INDEPENDENT DIRECTORS
Our
common stock is listed on the NASDAQ Global Select Market. NASDAQ requires that
a majority of our directors be independent, as defined by NASDAQs rules.
Generally, a director does not qualify as an independent director if the
director or a member of a directors immediate family has had in the past three
years certain relationships or affiliations with us, our external or internal
auditors, or other companies that do business with us. Our Board has
affirmatively determined that a majority of our directors are independent
directors under the categorical guidelines our Board has adopted, which
includes all objective standards of independence set forth in the NASDAQ rules.
The categorical independence standards adopted by our Board are posted to the
Corporate Governance section of our website,
www.ccbg.com
.
Based on these standards, our Board determined that our independent directors
include the following current directors and nominees for director: DuBose
Ausley, Frederick Carroll, III, Cader B. Cox, III, J. Everitt Drew, John K.
Humphress, Lina S. Knox, and Henry Lewis III.
CORPORATE GOVERNANCE GUIDELINES
The
Board has adopted Corporate Governance Guidelines that give effect to the
NASDAQ corporate governance listing standards and various other corporate
governance matters.
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4
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INDEPENDENT DIRECTOR MEETINGS IN EXECUTIVE SESSIONS
Our
independent directors have established a policy to meet separately without any
Company associates present in regularly scheduled executive sessions at least
twice annually, and at such other times as may be deemed appropriate by our
independent directors. Any independent director may call an executive session
of independent directors at any time; however, the independent directors of the
Board generally meet in executive session every time the Board meets. In 2011,
the independent directors met in an executive session nine times.
BOARD LEADERSHIP
The
Board has no policy with respect to separation of the positions of Chairman and
CEO or with respect to whether the Chairman should be a member of management or
a non-associate director, and believes that these are matters that should be
discussed and determined by the Board from time to time. When the Chairman of
the Board is a member of management or is otherwise not independent, the
non-associate directors elect a lead director, which we discuss below.
Currently, Mr. Smith serves as our Chairman and CEO. Given the fact that Mr.
Smith is tasked with the responsibility of implementing our corporate strategy,
we believe he is best suited for leading discussions regarding performance
relative to our corporate strategy, and this discussion is a significant
portion of our Board meetings.
LEAD DIRECTOR
The
independent directors of our Board of Directors annually elect an independent
director to serve in a lead capacity. Although annually elected, the lead
director is generally expected to serve for more than one year.
Mr.
Drew serves as our lead director. The lead directors duties, which are listed
in a Board approved charter, include presiding at all meetings of the Board at
which the Chairman is not present, calling meetings of the independent
directors, coordinating with the Chairman the planning of meeting agenda items,
and serving as an independent point of contact for shareowners wishing to
communicate with the Board other than through the Chairman. We have posted all
of the lead director duties on the Lead Director Charter section of our
website,
www.ccbg.com
.
RISK MANAGEMENT
The
Board believes that risk management is an important component of the Companys
corporate strategy. While we assess specific risks at our committee levels, the
Board, as a whole, oversees our risk management process, and discusses and
reviews with management major policies with respect to risk assessment and risk
management. The Board is regularly informed through committee reports about our
risks. In addition, in 2008, we established an Enterprise Risk Oversight
Committee, which reports to the Board at least twice per year. The Enterprise
Risk Oversight Committee serves to assist the Board in establishing and
monitoring key risks for the Company, and meets at least on a quarterly basis.
Finally, the Board believes the combined Chairman and CEO role assists us in
our implementation of major policies addressing our risks.
SHAREOWNER COMMUNICATIONS
Our
Corporate Governance Guidelines provide for a process by which shareowners may
communicate with the Board, a Board committee, the independent directors as a
group, or individual directors. Shareowners who wish to communicate with the
Board, a Board committee, or any other directors or individual directors may do
so by sending written communications addressed to the Board, a Board committee,
or such group of directors or individual directors at the address below:
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Capital City Bank Group,
Inc.
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c/o Corporate Secretary
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217 North Monroe Street
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Tallahassee, Florida 32301
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Communications
will be compiled by our Corporate Secretary and submitted to the Board, a
committee of the Board, or the appropriate group of directors or individual
directors, as appropriate, at the next regular meeting of the
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Board. The Board has
requested that the Corporate Secretary submit to the Board all communications
received, excluding those items that are not related to board duties and
responsibilities, such as: mass mailings, job inquiries, resumes, advertisements,
solicitations, and surveys.
CODES OF CONDUCT AND ETHICS
The
Board has adopted Codes of Conduct applicable to all directors, officers, and
associates, and a Code of Ethics applicable to our Chief Executive Officer and
our financial and accounting officers, all of which are available, without
charge, upon written request to:
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Capital City Bank Group,
Inc.
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c/o Corporate Secretary
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217 North Monroe Street
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Tallahassee, Florida 32301
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These
codes are designed to comply with NASDAQ and U.S. Securities and Exchange
Commission requirements. We will disclose any amendments to, or waivers from,
the Code of Ethics on our website within four business days of such
determination.
BOARD AND COMMITTEE EVALUATIONS
The
Corporate Governance and Nominating Committee uses written questionnaires to
evaluate the Board as a whole and its committees. The evaluation process occurs
annually. Directors submit completed questionnaires to the Chair of the
Corporate Governance and Nominating Committee, who summarizes the results
without attribution. The full Board discusses the summary of the Board
evaluation, and each committee discusses the summary of its own evaluation.
DIRECTOR NOMINATING PROCESS
The
Corporate Governance and Nominating Committee annually reviews and makes
recommendations to the full Board regarding the composition and size of the
Board so that the Board consists of members with the proper expertise, skills,
attributes, and personal and professional backgrounds needed by the Board,
consistent with applicable NASDAQ and regulatory requirements.
The
Corporate Governance and Nominating Committee believes that all directors,
including nominees, should possess the highest personal and professional
ethics, integrity, and values, and be committed to representing the long-term
interests of our shareowners. The Corporate Governance and Nominating Committee
will consider criteria including the nominees current or recent experience as
a senior executive officer, whether the nominee is independent, as that term is
defined in Rule 5605(a)(2) of the NASDAQ listing standards, the business
experience currently desired on the Board, geography, the nominees banking
industry experience, and the nominees general ability to enhance the overall
composition of the Board. The Corporate Governance and Nominating Committee
does not have a formal policy on diversity; however, the Board and the
Corporate Governance and Nominating Committee believe that it is essential that
the Board members represent diverse viewpoints.
Our
Corporate Governance and Nominating Committee will identify nominees for
directors primarily based upon suggestions from shareowners, current directors,
and executives. The Chair of the Corporate Governance and Nominating Committee
and at least one other member of the Corporate Governance and Nominating
Committee will interview director candidates. The full Board will formally
nominate candidates for director to be included in the slate of directors
presented for shareowner vote based upon the recommendations of the Corporate
Governance and Nominating Committee following this process.
DIRECTOR SERVICE ON OTHER BOARDS
To ensure that our directors
can provide sufficient time and attention to the Company, our directors may not
serve on more than three other boards of directors of public companies in
addition to our Board.
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SUCCESSION PLANNING
The
Board plans for succession to the position of Chief Executive Officer as well
as certain other senior management positions. To assist the Board, William G.
Smith, Jr., our Chairman, President, and CEO, annually provides the Board with
an assessment of senior managers and of their potential to succeed him. He also
provides the Board with an assessment of persons considered potential
successors to certain senior management positions. The Corporate Governance and
Nominating Committee and our independent directors in an executive session
annually review this updated assessment. In addition, the Board interviews
members of senior management who are potential successors to our executive
management.
CHANGE IN DIRECTOR OCCUPATION
A
director whose principal occupation or business association changes
substantially during the directors tenure must tender a resignation for
consideration by the Corporate Governance and Nominating Committee. The
Corporate Governance and Nominating Committee will recommend to the Board the action,
if any, to be taken with respect to the resignation.
DIRECTOR ELECTIONS
Our
Bylaws provide that in an uncontested election, if a nominee for director does
not receive the vote of at least the majority of the votes cast at any meeting
for the election of directors at which a quorum is present, then the director
will promptly tender his or her resignation to the Board. The Corporate
Governance and Nominating Committee will make a recommendation to the Board as
to whether to accept or reject the tendered resignation, or whether other
action should be taken. The Board will act on the tendered resignation and
publicly disclose its decision and the rationale behind the decision within 90
days from the date of the certification of the election results. If a
directors resignation is not accepted by the Board, then such director will
continue to serve until the next annual meeting for the year in which his or
her term expires and until his or her successor is duly elected, or his or her
earlier resignation or removal. If a nominees resignation is accepted by the
Board, then the Board, in its sole discretion, may fill any remaining vacancy
or decrease the size of the Board. To be eligible to be a nominee for election
or reelection as our director, a person must deliver to our Corporate Secretary
a written agreement that such person will abide by these requirements.
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B
OARD AND
COMMITTEE MEMBERSHIP
|
BOARD OF DIRECTORS
Our
Board of Directors oversees our business, property, and affairs pursuant to the
Florida Business Corporation Act and our Articles of Incorporation and Bylaws.
Members of our Board are kept informed of our business through discussions with
our senior management team, by reviewing materials provided to them, and by participating
in Board and Committee meetings.
Our
Board met 12 times in 2011. All of our directors attended at least 75 percent
of the total aggregate number of Board and Committee meetings on which they
served.
We expect all directors to attend our Annual Meeting. All directors, who were directors at the time of our Annual Meeting in
2011, attended the 2011 Annual Meeting.
COMMITTEES OF THE BOARD
In 2011, our Board of Directors had three standing committees: Audit, Compensation, and Corporate Governance and Nominating. The
Board has adopted written charters for each of its standing committees. The Audit, Compensation, and Corporate Governance and
Nominating Committee charters are published on the Corporate Governance section of our website at www.ccbg.com. The Board has
determined that all members of the Audit, Compensation, and Corporate Governance and Nominating Committees are independent as that
term is defined under applicable NASDAQ and Securities and Exchange Commission rules. As of March 1, 2012, the committee composition
was as follows:
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Name
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Audit
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Compensation
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Governance/
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Nominating
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DuBose Ausley
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X
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X
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Thomas A. Barron
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Frederick Carroll, III*
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Chair
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Cader B. Cox, III
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Chair
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X
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J. Everitt Drew*
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X
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X
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John K. Humphress*
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X
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Chair
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Lina S. Knox
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X
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Henry Lewis III
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X
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William G. Smith, Jr.**
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*
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Qualifies as an audit
committee financial expert
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**
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Chairman of the Board of
Directors
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Audit Committee
The
Audit Committee met 14 times in 2011. Our Board has determined that Frederick
Carroll, III, Chairman of the Audit Committee, John K. Humphress, and J.
Everitt Drew are each an audit committee financial expert as defined by the
Securities and Exchange Commission.
Management
has the primary responsibility for our financial statements and reporting
process, including the systems of internal controls and reporting. Our
independent auditors are responsible for performing an independent audit of our
consolidated financial statements in accordance with U.S. generally accepted
auditing standards, issuing a report thereon, and annually opining on the
effectiveness of our internal control over financial reporting. The Audit
Committee monitors the integrity of our financial reporting process, system of
internal controls, and the independence and performance of our independent and
internal auditors.
In
addition, the Audit Committee: (a) monitors and reviews our compliance with
Section 112 of the Federal Deposit Insurance Corporation Improvement Act of
1991 and reviews regulatory reports; (b) reviews independent auditors report
on our financial statements, significant changes in accounting principles and
practices, significant proposed adjustments, and any unresolved disagreements
with management concerning accounting or disclosure matters; and (c) recommends
independent auditors and reviews their independence and qualifications,
services, fees, and the scope and timing of audits.
Compensation Committee
The
Compensation Committee met five times in 2011. The Compensation Committee: (a)
reviews and approves corporate goals and objectives relevant to the Chief
Executive Officers compensation, evaluates the performance of the Chief
Executive Officer in light of those goals and objectives, and sets the Chief
Executive Officers base salary, short-term incentive compensation, and
long-term incentive compensation based on this evaluation; (b) reviews and approves
base salary, short-term incentive compensation, and long-term incentive
compensation of our executive officers; (c) reviews the compensation of our
senior management team other than our executive officers; (d) reviews incentive
compensation arrangements to assess relationship with risk management policies
and practices; (e) reviews and approves benefits, including retirement benefits
and perquisites of our executive officers; (f) reviews and approves employment
agreements, severance agreements, and change-in-control agreements for
executive officers; (g) evaluates and recommends the appropriate level of
director compensation, including compensation for service as a member or chair
of a Board committee; and (h) establishes and reviews stock ownership guidelines
for directors and executive officers.
Corporate Governance and Nominating Committee
The
Corporate Governance and Nominating Committee met three times in 2011. The
Corporate Governance and Nominating Committee: (a) develops and reviews background
information for candidates for the Board of Directors, including candidates
recommended by shareowners, and makes recommendations to the Board of Directors
about these candidates; (b) evaluates the performance of current Board members
proposed for reelection; (c) recommends to the Board for approval a slate of
nominees for election to the Board; (d) reviews all candidates
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for nomination submitted by
shareowners; (e) develops plans for our managerial succession; (f) develops,
implements, and monitors policies and practices relating to corporate
governance; (g) coordinates director orientation and appropriate continuing
education programs for directors; (h) oversees the annual self-assessment of
the Board and Board Committees; and (i) reviews all shareowner proposals.
COMPENSATION ELEMENTS
We
currently have seven non-associate directors who qualify for compensation for
Board service. The elements of compensation include:
Cash Compensation
Basic
Annual Retainer.
The
basic annual retainer is $12,000. There has been no change since 2006.
Audit
Committee.
Members
of the Audit Committee receive an annual fee of $7,000 and the chairman of the
Audit Committee receives an annual chairmans fee of $7,000.
Compensation
Committee.
Members
of the Compensation Committee receive an annual fee of $4,000 and the chairman
of the Compensation Committee receives an annual chairmans fee of $4,000.
There has been no change since 2006.
Corporate
Governance and Nominating Committee
.
Members of the Corporate Governance and
Nominating Committee receive an annual fee of $3,000 and the chairman of the
Corporate Governance and Nominating Committee receives an annual chairmans fee
of $3,000.
Lead
Outside Director Annual Fee
.
The
Lead Outside Director receives an annual fee of $4,000.
Board
Meeting Fees
.
Directors
receive $750 for each board meeting attended. There has been no change since
2006.
Equity Compensation
Quarterly
Stock Grant.
As
part of annual director compensation, each director who participates in our
Director Stock Purchase Plan earns 100 shares of our common stock per quarter,
price based on the closing price of our common stock on the NASDAQ as
determined on the last stock trading day of the quarter. Directors not
participating in our Director Stock Purchase Plan receive all 400 shares each
January in the year following the year for which service relates based on the
average of the high and low prices of the shares of our common stock on the
NASDAQ for the last 10 trading days of the previous year.
Director
Stock Purchase Plan
.
Directors
are also permitted to purchase shares of common stock at a 10% discount from
fair market value under the 2011 Director Stock Purchase Plan. This Plan has
150,000 shares of common stock authorized for issuance. During 2011, 13,112
shares were purchased. As of December 31, 2011, there were 136,188 shares of
common stock available for issuance. Purchases under this plan were not
permitted to exceed the annual retainer and meeting fees received. Our
shareowners adopted the Director Stock Purchase Plan at our 2011 Annual Meeting.
Perquisites and Other Personal Benefits
We
provide directors with perquisites and other personal benefits that we believe
are reasonable, competitive and consistent with our overall director
compensation program. The value of the perquisites for each director in the
aggregate is less than $10,000.
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DIRECTOR COMPENSATION TABLE
The
following table sets forth a summary of the compensation we paid to our directors,
other than directors who are also executive officers, in 2011:
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Name
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Fees Earned or
Paid in Cash
($)
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Stock Awards
(1)
($)
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All Other
Compensation
(2)
($)
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Total
($)
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DuBose Ausley
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$
|
28,000
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$
|
3,534
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$
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0
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$
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31,534
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Frederick Carroll, III
|
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35,000
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3,962
|
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0
|
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38,962
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Cader B. Cox, III
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32,000
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3,962
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2,500
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38,462
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J. Everitt Drew
|
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36,000
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3,534
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0
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39,534
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John K. Humphress
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34,000
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3,534
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0
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37,534
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Lina S. Knox
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24,000
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3,534
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0
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27,534
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Henry Lewis III
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27,250
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3,962
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0
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31,212
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(1)
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We pay each non-associate
director an annual stock grant of 400 shares of our common stock, issued
under our Director Stock Purchase Plan. Under the terms of the Director Stock
Purchase Plan, each non-associate director has the opportunity to participate
in the Director Stock Purchase Plan under two separate options. The first
option, Option A, permits non-associate directors to make an election
(Option A Participants) each January indicating the dollar amount of his or
her annual retainer and fees received from serving as a director in the
preceding year which he or she would like to be applied to the purchase of
shares of our common stock. The second option, Option B, permits
non-associate directors to make an election (Option B Participants) each
December indicating the percentage of his or her annual retainer and fees to
be received from serving as a director in the upcoming year which he or she
would like to be applied to the purchase of shares of Common Stock. Option A
Participants receive their annual stock grant each January for the preceding
years service as director. In 2011, the fair value at time of grant for the
Option A Participants was $8.83. Option B Participants receive their annual
stock grant in four equal quarterly installments during the year to which the
non-associate directors service relates. The fair value at the time of grant
for the Option B Participants was $11.31, $9.69, $9.15, and $9.46. Messrs.
Drew, Humphress, and Ausley and Ms. Knox are Option A Participants, and
therefore did not receive their stock grants in 2011. Instead, these
directors received their stock grants in January 2012. The column represents
the fair value of the award as calculated in accordance with U.S. generally
accepted accounting principles.
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(2)
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The amounts in this column
represent director fees paid to the director for serving as directors for
certain subsidiaries of ours.
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STOCK OWNERSHIP EXPECTATIONS
We
maintain stock ownership guidelines for all independent directors. Under our
current guidelines, all independent directors are expected to own our common
stock equal in value to 10 times their annual director compensation at the time
they were elected. Directors have 10 years from the date they are first
appointed or elected to our Board to meet the stock ownership requirement. The
Compensation Committee has determined that as of December 31, 2011, all
directors have met our share ownership expectations or are on track to meet the
ownership expectations within the stated time period of 10 years from date of
appointment or election.
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P
ROPOSAL NO. 1 NOMINEES FOR ELECTION AS
DIRECTORS
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ELECTION OF DIRECTORS
The
Board is divided into three classes, designated Class I, Class II, and Class
III. The directors in each class are elected for terms of three years or until
their successors are duly qualified and elected. At the Annual Meeting, the
shareowners will elect four Class III directors. The Board proposes the
following four nominees for election as directors at the Annual Meeting. The
individuals named on the enclosed proxy card will vote, unless instructed
otherwise, each properly delivered proxy for the election of the following
nominees as directors.
If
a nominee is unable to serve, the shares represented by all valid proxies that
have not been revoked will be voted for the election of a substitute as the
Board may recommend, or the Board may by resolution reduce the size of the
Board to eliminate the resulting vacancy. At this time, the Board knows of no
reason why any nominee might be unable to serve.
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If
all four director nominees are elected, the Board will have no vacancies.
Brokers do not have discretion to vote on this proposal without your
instructions. If you do not instruct your broker how to vote on this proposal,
your broker will deliver a nonvote on this proposal.
Majority Vote Standard for Election of
Directors
Our
Bylaws require that each director be elected by a plurality of votes cast with
respect to such director in uncontested elections. Our Bylaws, however, also
provide that in an uncontested election, if a nominee for director does not
receive the vote of at least the majority of the votes cast at any meeting for
the election of directors at which a quorum is present, the director will
promptly tender his or her resignation to the Board. In a contested election (a
situation in which the number of nominees exceeds the number of directors to be
elected), the standard for election of directors would be a plurality of the
shares represented in person or by proxy at any such meeting and entitled to
vote on the election of directors. Whether an election is contested or not is
determined as of a date that is the day immediately preceding the date we first
mail our notice of meeting for such meeting to the shareowners; this years
election was determined to be an uncontested election, and the majority vote
standard will apply.
Director Qualifications
The
following paragraphs provide information as of the date of this Proxy Statement
about each nominee and each incumbent director not up for re-election in the
categories of: age, positions held, principal occupation and business
experience for the past five years, and names of other publicly-held companies
for which he or she serves as a director or has served as a director during the
past five years. While the following paragraphs note certain individual
qualifications and skills of our directors that contribute to the Boards
effectiveness as a whole, we also believe that all of our nominees and
incumbent directors not up for re-election have a reputation for integrity,
honesty, and adherence to high ethical standards. They each have demonstrated
strong leadership skills, business acumen and an ability to exercise sound
judgment, as well as a commitment of service to our shareowners.
Mandatory Retirement Policy
At
74 years of age, Mr. Ausley has attained the mandatory retirement age (age 72)
required under the Companys Corporate Governance Guidelines. It was the
Boards judgment that Mr. Ausley, who has provided the Board with invaluable
service, be proposed as a director nominee notwithstanding the policy.
NOMINEES TO SERVE FOR A THREE-YEAR TERM
EXPIRING IN 2014
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DuBOSE AUSLEY
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Mr. Ausley,
74, has been a director since 1982, and was our Chairman from 1982 until
2003. He is employed by the law firm of Ausley & McMullen and was
Chairman of this firm and its predecessor for more than 20 years until 2002.
Since 1992, he has served as a director of TECO Energy, Inc. In addition, Mr.
Ausley has served as a director of Huron Consulting Group, Inc. since 2004
and a director of Blue Cross and Blue Shield of Florida, Inc. from 1982 to
2008, and continues to serve as a director of Capital Health Plan, an
affiliate of Blue Cross and Blue Shield of Florida, Inc. Mr. Ausley has
practiced law in Florida since 1963. We believe Mr. Ausleys qualifications
to sit on our Board include his more than 20 years experience as an officer
of Capital City Bank and CCBG, his extensive knowledge of banking law and
regulation, and his extensive experience on other public company boards.
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FREDERICK CARROLL, III
Mr. Carroll,
61, has been a director since 2003. Since 1990, he has been the Managing
Partner of Carroll and Company, CPAs, an accounting firm specializing in tax
and audit based in Tallahassee, Florida. Mr. Carroll has practiced as a CPA
since 1977. Mr. Carroll has a masters degree in accounting. We believe Mr.
Carrolls qualifications to sit on our Board include his long and varied
business career, including his extensive accounting experience.
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Capital City Bank Group,
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JOHN K. HUMPHRESS
Mr.
Humphress, 63, has been a director since 1994. Since 1973, he has been a
shareholder of a public accounting firm, Wadsworth, Humphress, Hollar, &
Konrad, P.A. (and its predecessors). We believe Mr. Humphresss
qualifications to sit on our Board include his long and diversified business
career, including his extensive accounting experience.
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HENRY LEWIS III
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Dr. Lewis,
62, has been a director since 2003. Since 2011, he has been the President of
Florida Memorial University. Previously, he was Professor and Dean of the
College of Pharmacy and Pharmaceutical Sciences at Florida A&M University
from 1994 until January 2011. He also served as Interim President of the
University in 2002. Prior to Dr. Lewiss appointment to these positions, he
served as Dean of the College of Pharmacy and Health Sciences at Texas Southern
University from 1990 to 1994. We believe Dr. Lewiss qualifications to sit on
our Board include his experience leading organizations, and his strong skills
in government relations and strategic planning.
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The Board of
Directors unanimously recommends a vote FOR the nominees.
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C
ONTINUING DIRECTORS AND EXECUTIVE
OFFICERS
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CONTINUING CLASS I DIRECTORS (TERM EXPIRING IN 2013)
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CADER B. COX, III
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Mr. Cox, 62,
has been a director since 1994. From 1976 to 2006, he served as President,
and since 2006, he has served as CEO of Riverview Plantation, Inc., a resort
and agricultural company located in Georgia. He is extensively involved in
the community, including serving as a partner for The University of Georgia
Research Foundation Board, Partner of Camilla Retirement Center, trustee of
AgriTrust, Board member of University of Georgia Real Estate Foundation
Board, and Board member of the Georgia Forestry Association Board. We believe
Mr. Coxs qualifications to sit on our Board include his operational and
financial expertise gained from the successful operation of his own business,
as well as his executive leadership and management experience.
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WILLIAM G. SMITH, JR
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Mr. Smith,
58, has been a director since 1982. He currently serves as our Chairman,
President, and Chief Executive Officer. He was elected Chairman in 2003 and
has been President and Chief Executive Officer since 1995. Mr. Smith also
serves as Chairman of Capital City Bank, a position he has held since 1995.
In addition, Mr. Smith has served as a director of Southern Company since
February 2006. Mr. Smith is the first cousin of Ms. Knox. We believe Mr.
Smiths qualifications to sit on our Board include his over three decades of
banking experience, including over 16 years as our President and Chief
Executive Officer.
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CONTINUING CLASS II DIRECTORS (TERM EXPIRING IN 2014)
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THOMAS A. BARRON
Mr. Barron,
59, has been a director since 1982. He is our Treasurer and was appointed
President of Capital City Bank in 1995. We believe Mr. Barrons qualifications to sit on our Board include his
over three decades of banking experience, including over 16 years as the
President of Capital City Bank.
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J. EVERITT DREW
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Mr. Drew,
56, has been a director since 2003. From 2000 to 2007, he was President of
St. Joe Land Company where his duties included overseeing the sale and
development efforts of several thousand acres of St. Joe property in
northwest Florida and southwest Georgia. Since 2007, Mr. Drew has been
President of SouthGroup Equities, Inc., a private real estate investment and
development company. We believe Mr. Drews qualifications to sit on our Board
include his experience as President of St. Joes Land Company, which at the
time was the largest landowner in Florida as well as his operational and
financial expertise gained from the successful operation of his own business.
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LINA S. KNOX
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Ms. Knox,
67, has been a director since 1998. Ms. Knox has been retired since 1992. A
former history teacher at a private college preparatory school in
Tallahassee, Ms. Knox has served on a variety of boards as a civic leader.
She has previously served on the board of directors of Alfred B. Maclay
School; Goodwood Museum and Gardens and the YMCA. She also served on the
vestry of St. Johns Episcopal Church in Tallahassee, Florida. Ms. Knox is the
first cousin of Mr. Smith. There is no arrangement or understanding between
Ms. Knox and Mr. Smith to which she was or is to be selected as a director or
nominee. We believe Ms. Knoxs qualifications to sit on our Board include her
extensive historical involvement in the Tallahassee community, including her
perspective as a community volunteer and civic leader and someone who is
involved day to day with issues as they affect our communities. Ms. Knoxs
knowledge of the Tallahassee community is critical to our success in
providing community banking services to Tallahassee, our largest market.
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N
ONDIRECTOR EXECUTIVE OFFICER
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J. KIMBROUGH DAVIS
Mr. Davis,
58, was appointed our Executive Vice President and Chief Financial Officer in
1997. He served as Senior Vice President and Chief Financial Officer from
1991 to 1997. In 1998, he was appointed Executive Vice President and Chief
Financial Officer of Capital City Bank.
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S
HARE OWNERSHIP
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SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
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Section
16(a) of the Securities Exchange Act of 1934, as amended (the Exchange Act)
requires our directors and executive officers, and parties owning beneficially
more than 10% of our common stock, to file reports with the
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Capital City Bank Group,
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U.S.
Securities and Exchange Commission to reflect their interests in our common
stock. Copies of these reports must be furnished to us.
The
Company believes, based solely on a review of the copies of such forms in our
possession and on written representations from reporting persons, that with
respect to the fiscal year ended December 31, 2011, all of its executive
officers and directors filed on a timely basis the reports required to be filed
under Section 16(a) of the Exchange Act.
SHARE OWNERSHIP TABLE
The
following table sets forth information, as of February 14, 2012 (the most
recent practicable date), with respect to the number of shares of our common
stock beneficially owned by our directors, executive officers named in the
Summary Compensation Table, and all executive officers and directors as a
group. The following table also provides information with respect to each
person known by us to beneficially own more than 5% of our common stock.
As
of February 14, 2012, there were 17,182,087 shares of our common stock
outstanding.
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Name
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Shares
Beneficially
Owned
(1)
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Percentage of
Outstanding
Shares Owned
(2)
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DuBose Ausley
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516,029
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(3)
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3.00
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%
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Thomas A. Barron
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205,608
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(4)
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1.20
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%
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Frederick Carroll, III
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18,592
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*
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Cader B. Cox, III
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49,404
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(5)
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*
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J. Kimbrough Davis
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71,456
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(6)
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*
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J. Everitt Drew
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22,149
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(7)
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*
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John K. Humphress
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91,990
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(8)
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*
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Lina S. Knox
(10)
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70,563
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(9)
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*
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Henry Lewis III
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15,880
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*
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Robert H. Smith
(10)
Post Office Box 30935, Sea Island, Georgia
31561
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3,492,095
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(11)
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20.32
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%
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William G. Smith, Jr.
(10)
Post Office Box 11248, Tallahassee, Florida
32302
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3,761,874
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(12)
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21.89
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%
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2S Partnership
217 North Monroe Street, Tallahassee, Florida 32301
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1,049,361
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(13)
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6.11
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%
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All Directors and Executive Officers as a Group
(10 Persons)
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4,823,545
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27.97
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%
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(1)
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For purposes of this table,
a person is deemed to be the beneficial owner of any shares of common stock
if he or she has or shares voting or investment power with respect to the
shares or has a right to acquire beneficial ownership at any time within 60
days from the record date. Voting power is the power to vote or direct the
voting of shares and investment power is the power to dispose or direct the
disposition of shares.
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(2)
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An asterisk in this column
means that the respective director or executive officer is the beneficial
owner of less than 1% of our common stock.
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(3)
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Includes (i) 190,283 shares
held in trust under which Mr. Ausley serves as trustee and has sole voting
and investment power; and (ii) 12,500 shares owned by Mr. Ausleys wife, of
which he disclaims beneficial ownership. Of the shares of common stock beneficially
owned by Mr. Ausley, 125,000 shares are pledged as security.
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(4)
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Includes (i) 24,437 shares
held in trusts under which Mr. Barron serves as trustee; (ii) 716 shares for
which Mr. Barron has power of attorney and may be deemed to be a beneficial
owner; and (iii) 28,906 shares owned by Mr. Barrons wife, of which he
disclaims beneficial ownership. Of the shares of our common stock
beneficially owned by Mr. Barron, 184,406 shares are pledged as security.
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(5)
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Includes 10,500 shares
owned by Mr. Coxs wife, of which he disclaims beneficial ownership.
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(6)
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Includes (i) 1,339 shares
in accounts for his children for which Mr. Davis and his wife act as
custodian; (ii) 29,613 shares owned jointly by Mr. Davis and his wife; and
(iii) 6,600 shares owned by Mr. Daviss wife, directly and through an
Individual Retirement Account of which he disclaims beneficial ownership.
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(7)
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Includes (i) 21,525 shares
owned jointly by Mr. Drew and his wife; and (ii) 624 shares in accounts for
his children for which Mr. Drew is custodian.
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(8)
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Includes 45,445 shares held
by the Humphress Family Trust of which Mr. Humphress is a trustee
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(9)
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Includes 23,000 shares held
by the Dean Eugene Knox Lifetime QTIP Trust of which Ms. Knox disclaims
beneficial ownership because she is neither a beneficiary nor a trustee.
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(10)
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Robert H. Smith and William
G. Smith, Jr. are brothers, and Lina S. Knox is their first cousin.
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(11)
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Includes (i) 100,623 shares
in accounts for his children for which Mr. Smith is custodian; (ii) 338,291
shares held in certain trusts under which Mr. Smith shares voting and
investment power as a co-trustee; and (iii) 1,049,361 shares held by the 2S
Partnership under which Mr. Smith shares voting and investment power. Of the
shares beneficially owned by Robert H. Smith, 1,387,652 shares are also
beneficially owned by William G. Smith, Jr.
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(12)
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Includes (i) 338,291 shares
held in certain trusts under which Mr. Smith shares voting and investment
power as a co-trustee; (ii) 1,049,361 shares held by the 2S Partnership under
which Mr. Smith shares voting and investment power; (iii) 55,666 shares owned
by Mr. Smiths wife, of which he disclaims beneficial ownership; and (iv)
60,384 shares that may be acquired pursuant to nonvoting stock options that
are or will become exercisable within 60 days. Of the shares beneficially
owned by William G. Smith, Jr., 1,387,652 shares are also beneficially owned
by Robert H. Smith. Of the shares of our common stock beneficially owned by
Mr. Smith, 1,153,082 shares are pledged as security, including 703,366 shares
of the 1,049,361 shares held by the 2S Partnership.
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(13)
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Of the 1,049,361 shares
held by 2S Partnership, all are also beneficially owned by Robert H. Smith
and William G. Smith, Jr.
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E
XECUTIVE OFFICERS AND TRANSACTIONS WITH
RELATED PERSONS
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EXECUTIVE OFFICERS
Executive
officers are elected annually by the Board at its meeting following the annual
meeting of shareowners to serve for a one-year term and until their successors
are elected and qualified. Thomas A. Barron and William G. Smith, Jr. serve as
directors and executive officers and J. Kimbrough Davis is an executive
officer. For information pertaining to the business experience and other
positions held by these individuals, see NOMINEES FOR ELECTION AS DIRECTORS
and CONTINUING DIRECTORS AND EXECUTIVE OFFICERS.
PROCEDURES FOR REVIEW, APPROVAL, OR
RATIFICATION OF RELATED PERSON TRANSACTIONS
We
recognize that related person transactions may raise questions among our
shareowners as to whether the transactions are consistent with our best
interests and our shareowners best interests. We generally do not enter into
or ratify a related person transaction unless our Board, acting through the
Audit Committee or otherwise, determines that the related person transaction is
in, or is not inconsistent with, our best interests and our shareowners best
interests. We have adopted a written Related Person Transaction Policy.
For
the purpose of our procedures, a related person transaction is a transaction
in which we participate and in which any related person has a direct or
indirect material interest, other than (a) transactions available to all
associates or clients generally, (b) transactions involving less than $120,000
when aggregated with all similar transactions, (c) loans made by Capital City
Bank in the ordinary course of business, made on substantially the same terms,
including interest rates and collateral, as those prevailing at the time for
comparable loans with persons not related to the lender, and not involving more
than the normal risk of collectability or presenting other unfavorable
features, or (d) employment arrangements with executive officers that are
reviewed and approved by the Compensation Committee.
Under
our procedures, each director, executive officer, and nominee for director
submits to our designated compliance officer, to the best of his or her knowledge,
the following information: (a) a list of his or her immediate family members;
(b) for each person listed and the director, executive officer, or nominee for
director, each firm, corporation or other entity in which such person is an
executive officer, a partner or principal or in a similar position or in which
such person has a 5% or greater beneficial ownership interest; and (c) for each
person listed and the director, executive officer, or nominee for director,
each charitable or nonprofit organization for which the person actively serves
as a director or trustee. We call this list our Related Parties Master List.
On
an ongoing basis, and to the best of their knowledge, directors and executive
officers are expected to notify our designated compliance officer of any
updates to the Related Parties Master List, changes regarding their employment,
and relationships with charitable organizations. On an annual basis, our
designated compliance officer re-circulates the most current information to the
directors and executive officers for review and re-verification of the
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Capital City Bank Group,
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information.
Each director and executive officer must either (a) update the list to reflect
changes in family, changes in employment, and the addition of new parent
companies, subsidiaries and sibling companies, or (b) confirm in writing that
no changes have occurred.
We
use our best efforts to follow similar procedures with each shareowner who owns
more than 5% of our common stock.
Our
designated compliance officer distributes the Related Parties Master List (and
the periodic updates thereof) to (a) each senior manager who oversees our
purchasing decisions and (b) the Chief Financial Officer and Chief Executive
Officer for use in monitoring of corporate transactions. In addition, our
designated compliance officer distributes the portion of the Related Parties
Master List containing the names of immediate family members of directors,
executive officers and nominees for director to the Chief People Officer and
the portion of the Related Parties Master List containing the names of related
charitable and nonprofit organizations to the Capital City Bank Group, Inc.
Foundation President. The recipients of the Related Parties Master List use the
compiled information to implement the review and approval requirements of this
policy.
We
use our best efforts to have our Audit Committee pre-approve all related person
transactions. In the event a related person transaction was not pre-approved by
the Audit Committee, the transaction is immediately submitted for the Audit
Committees review for ratification or attempted rescission.
In
addition to the policy described above, we circulate a questionnaire each
quarter to our directors and executive officers, in which each respondent is
required to disclose, to the best of their knowledge, all related person
transactions that occurred in the previous quarter.
TRANSACTIONS WITH RELATED PERSONS
For
the year ended December 31, 2011, we have not identified any transactions or
series of similar transactions for which we are a party in which the amount
involved exceeded or will exceed $120,000 and in which any current director,
executive officer, or holder of more than 5% of our capital stock had or will
have a direct or indirect material interest other than as follows:
Capital
City Banks Apalachee Parkway Office is located on land leased from the Smith
Interests General Partnership L.L.P. (SIGP) in which William G. Smith, Jr.,
Chairman of the Board, President, and Chief Executive Officer, Robert H. Smith,
a Vice President and owner of more than 10% of our common stock, and Lina S.
Knox, a director, are partners. Each of William G. Smith, Jr. and Robert H.
Smith own approximately 32% of SIGP interests. Ms. Knox owns approximately 14%
of the SIGP interests. Under a lease agreement expiring in 2024, Capital City
Bank makes monthly lease payments to SIGP. Lease payments are adjusted
periodically for inflation. Actual lease payments made by Capital City Bank to
SIGP in 2011 amounted to $136,212. The terms of this lease are comparable to
the terms we would have received if we had leased the property from a third party.
COMPENSATION COMMITTEE PROCESS AND PROCEDURES
Scope of Authority
The
Compensation Committee has strategic and administrative responsibility for a
broad range of issues, including reviewing, authorizing, and approving
compensation to be paid to our executive officers, directors, and our senior
management team. The Corporate Governance and Nominating Committee recommends
to the Board, and the Board appoints, each member of the Compensation
Committee. The Corporate Governance Committee has evaluated, and the Board has
determined, that each member of the Compensation Committee is an independent
director.
The
Compensation Committees policy is to review executive compensation, including
incentive goals, at least annually. The Compensation Committee also
periodically reviews benefits and perquisites, reviews and provides oversight
of our compensation philosophy, serves as the administrative committee for our
equity-based plans, and reviews stock ownership guidelines for our executive
officers and directors.
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Delegation
of Authority
The
Compensation Committees charter permits the delegation of its authority to our
Chief People Officer to administer compensation and benefits programs. In 2011,
the Compensation Committee delegated the administration of all associate
compensation, benefit and welfare plans to Bethany H. Corum, our Executive Vice
President and Chief People Officer.
None
of the members of the Compensation Committee is an executive officer of a
public company of which one of our executive officers is a director.
Independent Consultants
In
carrying out its responsibilities, the Compensation Committee evaluates the
information and recommendations put forth by management and its independent
advisors in making its decisions regarding executive compensation. The
Compensation Committees decisions are made with the objective of providing
fair, equitable and performance-based compensation to executives in a manner
that is affordable and cost effective for our shareowners. In 2011, the
Compensation Committee did not engage any independent consultants.
Managements Role
The
Compensation Committee sets compensation for the Chief Executive Officer based
on data provided by the Chief People Officer. In addition, the Compensation
Committee reviews and approves the Chief Executive Officers recommendations
for other executive officers compensation. In making these decisions, the
Compensation Committee relies on information and recommendations provided by
the Chief Executive Officer and Chief People Officer. The key elements
considered in determining compensation levels for our named executive officers
are as follows:
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Develop performance measures:
Identify
appropriate performance measures and recommend performance targets that are
used to determine annual and long-term awards.
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Compile benchmark data:
Management
participates in compensation surveys through reputable third-party firms
which are used to gather data on base salary, annual cash and long-term
performance awards. In reviewing and setting 2011 senior management
compensation, we used custom compensation profiles created by an independent
consultant engaged by the Compensation Committee in 2010. For executive
officers, we used peer group data published by SNL Financial. The Chief
People Officer also provides historical compensation data for each position
reviewed by the Compensation Committee.
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Develop compensation guidelines:
Using the
benchmark survey data and publicly disclosed compensation information as the
foundation, management develops compensation guidelines for each executive
position, such as targeting base salaries for our senior executives at the 50
th
percentile of our selected peer group and total direct compensation (salary,
cash and equity compensation) at the 75
th
percentile. These
guidelines are provided to the CEO as the basis for his recommendations
regarding individual compensation actions. In addition, executives are
briefed on the guidelines.
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The
key members of management involved in the executive compensation process were
Mr. Smith and Mrs. Corum. Mr. Smith has no involvement in setting his own
compensation and was not present during the Compensation Committees
deliberations regarding his own compensation. Mrs. Corum attends all meetings
of the Compensation Committee to provide information to the Compensation
Committee members and to take minutes of the meetings. At times, the
Compensation Committee conducts executive sessions. Mrs. Corum is excused from
all executive sessions and the Chairman of the Committee communicates any
decisions for inclusion in the minutes. Management (other than Mr. Smith and
Mr. Barron solely in their roles as directors approving the Compensation
Committees recommendations) had no role in setting compensation for the
non-associate directors.
COMPENSATION RISK MANAGEMENT
The
Compensation Committee has assessed our compensation design, policies and
practices to determine whether any risks arising from our compensation design,
policies and practices are reasonably likely to have a
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Capital City
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material adverse effect on us.
The compensation Committee has determined that our compensation policies and
practices do not create such risks. In making that determination, the
Compensation Committee considered various features of our compensation policies
and practices that discourage excessive risk taking, including but not limited
to the following:
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Development
of thoughtful compensation philosophy and selection of appropriate peer group
and other market comparability data;
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Effective
balance in the design of our compensation programs, including: (i) cash and
equity pay mix, (ii) short- and longer-term performance focus, (iii) Company,
division and individual performance focus and measurement, and (iv) financial
and nonfinancial performance measurement together with top management and
board discretion to manage pay appropriately; and
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§
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Stock
ownership guidelines and independent Compensation Committee oversight of our
compensation policies and practices.
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COMPENSATION DISCUSSION AND ANALYSIS
Introduction
Compensation
and Benefits Strategy
.
Our compensation strategy
provides broad guidance on senior management compensation and more specifically
on the compensation of the named executive officers. Our compensation
objectives are to provide compensation programs that:
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Align
compensation with shareowner value;
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§
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Provide a
direct and transparent link between the performance of the Company and pay
for the CEO and senior management;
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§
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Make wise
use of our equity resources to ensure compatibility between senior management
and shareowner interests;
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Align the
interests through performance-based incentive plans of our executive officers
with that of shareowners; and
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§
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Award total
compensation that is both reasonable and effective in attracting, motivating
and retaining key associates.
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We
believe that accomplishing corporate goals is essential for our continued
success and sustained financial performance. Therefore, we believe that
executive officer compensation should be largely at-risk and performance based.
Specific targets and weightings used for establishing short-term and long-term
performance goals are subject to change at the beginning of each measurement
period, and are influenced by the Boards desire to emphasize performance in
certain areas. Each year, the Compensation Committee reviews and approves all
executive officer performance-based goals.
The
compensation and benefits programs for our executives are designed with the
goal of providing compensation that is fair, reasonable and competitive. The
programs are intended to help us recruit and retain qualified executives, and
provide rewards that are linked to performance while also aligning the
interests of executives with those of our shareowners.
Compensation
Committee Activity in 2011.
The Compensation
Committee met five times in 2011, including two executive sessions with only
the Compensation Committee members present. The chair of the Compensation
Committee sets the meeting dates and agenda for the committee. During these
meetings, the Compensation Committee:
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§
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Held an
executive session to discuss the 2010 performance of the Chief Executive
Officer. In accordance with the Compensation Committee charter, Compensation
Committee Chairman Cader Cox distributed an
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Capital City Bank Group, Inc. Notice of Annual Meeting and Proxy
Statement
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18
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evaluation
to all outside directors, and then collected and compiled the results of the
evaluations. He presented the summarized and aggregated results for review by
the Compensation Committee;
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§
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Approved Mr.
Smiths 2011 base salary of $304,000, a 6.67% increase from 2010, and target
incentive compensation of $296,250;
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Approved the
2011 Stock-Based Incentive Plan, discussed in further detail on page 23;
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§
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Approved
minor revisions to Mr. Smiths Long-Term Incentive Plan, discussed in detail
on page 23;
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§
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Reviewed and
approved Capital City Bank President Thomas A. Barrons 2011 base salary of
$252,000 (a 2.78% increase from 2010), and target incentive compensation of
$239,000 and Chief Financial Officer J. Kimbrough Daviss 2011 base salary of
$243,800 (a 1.97% increase from 2010) and target incentive compensation of
$123,000. Reviewed total compensation for 12 senior managers, including a
review of incentive plans and relative risk to the Company;
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Reviewed executive
perquisites and found them to be reasonable;
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Reviewed
stock ownership positions for all senior managers and directors;
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Reviewed and
recommended no changes to director compensation for 2012; and
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§
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Discussed
strategic compensation issues, including recent guidance issued by the
Federal Reserve related to incentive compensation practices and the impact of
the Dodd-Frank Act.
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Compensation Philosophy
In
early 2009, the Compensation Committee, with Board approval, revised the
compensation philosophy and set the following compensation objectives:
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§
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Target base
salaries for our senior executives at the 50
th
percentile of our
selected peer group of banks unless an exemption is stated by the
Compensation Committee due to performance, experience, or market demand;
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§
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Position
direct compensation (salary, cash and equity compensation) of our senior
executives at the 75
th
percentile of our selected peer group of
banks dependent upon our performance to attract top talent and to recognize
exceptional performance by management;
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§
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Target
variable (pay for performance) compensation to at least 30% of total
compensation mix; and
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Continue,
over time, the alignment of senior managements interest with that of shareowners
(the percentage of equity compensation should increase relative to total
incentive compensation).
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We discuss the
composition of our peer group and our benchmarking practices in further detail
below.
Executive Compensation Policy Decisions
The
Compensation Committee has adopted a number of policies to further the goals of
our executive compensation program, particularly with respect to strengthening
the alignment of our executives interests with our shareowners long-term
interests. Further, the Compensation Committee believes the policies set forth
below are effective based on the stability of our management team and our
ability to attract talent from outside the Company.
Stock Ownership Expectations.
We
maintain stock ownership expectations for all senior managers, including our
executive officers. Under current guidelines, all senior managers are expected
to own shares of our common stock equal in value to at least two times their
annual base salary; Mr. Barron and Mr. Davis are expected to own shares of our
common stock equal in value to at least three times their annual base salary;
and Mr. Smith is expected
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19
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Capital City
Bank Group, Inc. Notice of Annual Meeting and Proxy Statement
|
to own shares of our common
stock equal in value to at least five times his annual base salary. Compliance
is expected within six years of becoming a senior manager or executive officer.
The
Compensation Committee has determined that as of December 31, 2011, all
executive officers have met our share ownership expectations and all other
senior managers covered by this program are making significant strides in
meeting the ownership expectations.
Stock Options.
We
ceased granting stock options in 2007.
Prohibition on Repricing Stock Options.
By
the terms of the 2011 Associate Incentive Plan, which is the only plan we may
use to grant stock options, repricing stock options is prohibited without
shareowner approval.
Employment Agreements and Severance Agreements.
We believe the employment of our executive officers
should remain at will. Therefore, none of our executive officers have
employment agreements or severance agreements with us.
We
do not have clawback provisions in any compensation arrangement, nor do we
consider past compensation in setting future compensation.
Compensation Program Design
Compensation
Framework.
We design our specific compensation
elements based on the following:
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Performance:
We believe that the best way to
accomplish alignment of compensation plans with the participants interests
is to link pay directly to individual and Company performance.
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§
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Competitiveness:
Compensation and benefits
programs are designed to be competitive with those provided by companies with
whom we compete for talent. Benefits programs are not based on performance.
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§
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Cost:
Compensation and benefit programs are
designed to be cost-effective and affordable, ensuring that the interests of
our shareowners are considered.
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§
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Comparator Group:
The relevant comparator
group for compensation and benefits programs consists of commercial banks and
thrifts with a geographic footprint or asset base similar to ours.
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Specific
Compensation Elements.
Our executive compensation
program is comprised of four discrete elements:
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§
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Base salary
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§
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Incentive
compensation
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§
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Benefits and
perquisites
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§
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Post-termination
compensation and benefits
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Benchmarking.
We use
benchmarking as a method to understand what similar positions pay in similar
organizations. In setting 2011 executive management compensation, we used SNL
Financials
2010
Executive Compensation Review
which compiled executive compensation
information from publicly available sources. We selected a peer group from SNL
Financials
2010
Executive Compensation Review
based on their similarities to us
relative to our asset size, performance, and markets served. At the time the
members of the peer group were selected, each member was a publicly traded
company. (See chart below for the names of the financial institutions in our
selected peer group as well as their asset size and net income.)
Approximately
45% of the peer group includes institutions that serve the same geographic
region as we do. Benchmarking is the primary tool we use to set executive
compensation; however, we also review individual
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Capital City Bank Group, Inc. Notice of Annual Meeting and Proxy
Statement
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20
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performance and industry trends in terms of
increases to executive compensation. For Mr. Smith, we also undertake a 10-year
historical compensation review.
The
compensation peer group is not identical to the peer group used to measure
company performance, due to difficulty in gathering compensation data from
nonpublic companies. Company performance data can be gathered from financial
institution call reports for public and nonpublic financial institutions.
However, many of the institutions represented on the compensation peer group
are included in the Company performance peer group.
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Financial Institution
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Total Assets ($ in thousands
)
*
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Net Income (loss) ($
)
*
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Bank of the Ozarks
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2,770,811
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43,083,000
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CenterState Banks of Florida, Inc
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1,751,299
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(6,217,000
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)
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City Holding Company
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2,662,474
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45,645,000
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Green Bankshares
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2,619,130
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(150,694,000
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)
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Great Florida Bank
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1,772,181
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(46,779,000
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)
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Home Bancshares, Inc.
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2,684,865
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26,806,000
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SCBT Financial Corp.
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2,702,188
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13,595,000
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Seacoast Banking Corp.
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2,151,315
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(146,686,000
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)
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TIB Financial Corp.
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1,705,407
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(61,548,000
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)
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Virginia Commerce Bancorp
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2,725,297
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(33,325,000
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)
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*
all data as of December 31, 2009
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Impact on Say-on-Pay Vote.
We provide our shareowners with the
opportunity to cast an advisory vote on executive compensation (Say-on-Pay)
every three years. At our Annual Meeting in 2011, out of the 13,019,106 votes
cast (excluding abstentions and broker non-votes), our shareowners cast
12,935,827 shares, or 99.4%, For approval of our executive compensation. The
Compensation Committee believes this vote affirmed shareowners support of our
approach to executive compensation. We did not change our approach in 2011. The
Compensation Committee will continue to consider the outcome of the Say-on-Pay
votes when making future compensation decisions for the named executive
officers.
Discussion of Specific Compensation Elements
Base Salary.
Our
compensation philosophy guideline is to target base salaries at the 50
th
percentile of our peer group; however, superior performance may warrant a base
salary to exceed the target. Our Compensation Committee believes that this
target level will allow us to attract and retain the talent necessary to
achieve our performance goals. The base salaries for the named executive
officers are determined by analyzing available market data as well as taking
into account the experience and performance of the individual. In 2009 and
2010, none of our named executive officers received an increase in their base
salary primarily due to economic factors, rather than performance of the named
executive officers. In 2011, the Compensation Committee, with Board approval,
increased the base salaries of our named executive officers. In 2011, after
giving effect to the raise, Mr. Smiths base salary was 26% below the 50
th
percentile base salary of our peer group. His relatively low base salary is not
reflective of his performance or experience level. It has been historically low
compared to our peer group benchmark and the Compensation Committee continues
to place great emphasis on bringing Mr. Smiths base salary in line with the
stated target level. After giving effect to the raise, Mr. Barrons base salary
was 6% below the 50
th
percentile and Mr. Daviss base salary was 7%
above the 50
th
percentile.
Incentive
Compensation.
In
addition to their base salary, each named executive officer has the opportunity
to earn annual incentive compensation. The Compensation Committee believes a
competitive overall compensation package should include incentive compensation
in the form of both cash and equity awards. The Compensation Committee believes
target incentive compensation equal to or greater than 30% of total
compensation is sufficient to change behaviors relative to performance. As a
result, we believe our total incentive-based compensation target of 30% of
total compensation is appropriate.
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21
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Capital City
Bank Group, Inc. Notice of Annual Meeting and Proxy Statement
|
The target awards for
incentive compensation are set relative to each executives cash compensation
against the peer group. Mr. Smiths base and cash incentive placed him well
below the 75
th
percentile for total cash compensation. Mr. Barrons
base and cash incentive placed him well below the 75
th
percentile
and Mr. Daviss base and cash incentive placed him at the 75
th
percentile for total cash compensation, relative to their respective peer
groups. In 2011, Mr. Smiths targeted incentive compensation was 49% of his
total compensation, Mr. Barrons was 49% and Mr. Daviss was 34%. We believe
the differences of potential impact each executive officer has on our
performance warrants differences on how much compensation is at risk.
Mr. Smiths total target
incentive compensation of $296,250 is comprised of 50% cash and 50% equity. Mr.
Barrons total target incentive compensation of $239,000 is comprised of 60%
cash and 40% equity. Mr. Daviss total target incentive compensation of
$123,000 is comprised of 60% cash and 40% equity. The different target levels
of compensation among the executive officers are designed to reflect the
different levels of responsibility of our executive officers.
Cash
Incentives
.
Cash incentives for each of the named
executive officers are based primarily on Company performance and whether and
to what extent the managers who directly report to him exceed their own
Company-determined performance goals. In 2011, Mr. Smith received a payout of
$86,645 under his cash incentive plan, representing 58.49% of his target, based
on four distinct but equally weighted goals, including growth in non-interest
bearing deposits of at least $27.3 million, lowering the level of
non-performing assets to $97 million, and achieving an annual earnings goal of
$8 million. The payout under the fourth goal, whether and to what extent the
managers who directly report to him achieve their own Company-determined
performance goals, is based on an average of his direct reporting managers
payouts under the plan. Each reporting manager has goals specific to his or her
division. Mr. Barron received a payout of $71,027, representing 49.67% of his
target. Mr. Barrons payout was based on the same four distinct goals as Mr.
Smith. Mr. Davis received a payout of $91,379, representing 123.49% of his
target. Mr. Daviss payout was based on three distinct goals: growth in
non-interest bearing deposits of $27.3 million, lowering the level of
non-performing assets to $97 million, and meeting a target for non-credit
related operating expenses of $123 million.
Stock-Based
Incentive Plan
. The Stock-Based Incentive Plan is a
performance-based equity bonus plan in which selected members of management,
including all named executive officers, are eligible to participate. The
Stock-Based Incentive Plan is administered under our 2011 Associate Incentive
Plan. It is our general policy to award cash awards to our executive officers
for superior individual/divisional performance and equity awards for superior
company performance. The Compensation Committee believes the equity component
of our incentive compensation package creates ownership in the Company and
aligns the goals of our shareowners and named executive officers because it
incentivizes our named executive officers to focus on improving long-term
performance.
The Stock-Based
Incentive Plan consists of performance shares, as well as a tax supplement
bonus paid in cash, and is designed to align the economic interests of
management with that of our shareowners.
Under
the Stock-Based Incentive Plan, all participants were eligible to earn an
equity award tied to achievement of 2011 EPS of $0.47 per share. The target EPS
was set by the board of directors. Depending on performance, payouts under the
plan could have ranged from 0% to 150%. Actual EPS of $0.40 per share, the
minimum performance, would have paid out at 50%. Actual EPS of $0.47 per share
would have paid out at 100%. Actual EPS of $0.70 per share would have paid out
at 150%.
There was no payout
earned under the 2011 Stock-Based Incentive Plan because the Companys EPS for
2011 did not meet the minimum necessary for a payout.
In 2011, the named
executive officers were eligible to receive the following shares:
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Name
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100%
Payout
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Maximum
Payout
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2011
Actual Payout
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William G. Smith, Jr.
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8,599
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12,898
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0
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Thomas A. Barron
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5,550
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8,324
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0
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J. Kimbrough Davis
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2,844
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4,267
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0
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Capital
City Bank Group, Inc. Notice of Annual Meeting and Proxy Statement
|
22
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The total economic value
of the award for each named executive officer is set as a percentage of total
incentive compensation. The total economic value of the award includes the
value of eligible shares at 100% payout and an estimated tax supplement bonus
of 31% of the value of the performance shares. The formula used a stock price
of $13.15 to arrive at the number of performance shares. The price was derived
based on the average high and lows of the previous 10 trading days from date of
grant (February 22, 2011). This formula was set by the terms of the 2011
Associate Incentive Plan.
Performance shares
earned under the Stock-Based Incentive Plan are issued in the calendar quarter
following the calendar year in which the shares were earned. Generally, any
performance shares earned are awarded in February. Participants will also
receive a cash payment equal to 31% of the market value of the performance
shares at the time of issue as a tax supplement bonus. We believe it is appropriate
to pay a tax supplement bonus because it allows the associate to retain all of
the shares he or she receives, rather than having to sell a portion of the
shares to satisfy any tax obligation. Having the associate retain shares
supports our philosophy of ownership expectations, which aligns the interest of
our officers with that of the shareowner.
Special
Discretionary Bonus
. In January 2012, the Compensation
Committee, with Board approval, declared a special discretionary cash bonus for
all associates of Capital City Bank, including the named executive officers.
The special discretionary cash bonus was awarded in recognition of
significantly exceeding the corporate goal of achieving a certain level of
non-interest bearing deposits at December 31, 2012. As a result, each associate
was awarded a cash award in the amount equal to 33% of the associates targeted
company performance bonus amount under the Stock-Based Incentive Plan (before
any tax supplement bonus). The total company-wide payout of the special
discretionary cash bonus was $400,000, on a pre-tax basis.
Long-term
Incentive Plan
-
Compound Annual Growth Rate in Diluted EPS
. Since January 2007,
the Compensation Committee has awarded Mr. Smith performance shares as provided
in the 2011 Associate Incentive Plan (or the predecessor plan). This plan is
designed to more closely correlate CEO compensation with the long-term growth
of the Company. Pursuant to this three-year plan, which is adopted each year to
allow for the annual adoption of rolling three year goals, we agree to award
performance shares with an economic value equivalent ranging from $0 -
$500,000, including a 31% tax supplement bonus after the conclusion of the
three-year performance period. In 2011, the first year of the plan, the plan
provided for a phase in period where we set goals to allow for possible
payouts for each of the next three years (2011, 2012, and 2013). Starting in
2012, the three-year plan will have one possible payout three years from the date
of grant. The 2011 phase in plan provides for a target award of $250,000
based on the Company earning $0.47 per share. In 2012, the second of the three
year plan, the target award goal will be 10% one-year compound annual growth
rate in diluted earnings per share. In 2013, the last year of the three year
plan, the target award goal will be 10% two-year compound annual growth rate in
diluted earnings per share. The 2011 target award of $0.47 per share serves as
the base amount to calculate the compounded annual growth rate in diluted
earnings per share for 2012 and 2013. In no event will an award be earned in
any year when the Company incurs a net loss.
In 2011, no award would
have been earned if actual performance was below $0.40 per share. A maximum
award of $500,000 would have been earned if the compound annual growth rate in
diluted earnings per share equaled or exceeded 12.5%, the maximum performance
level. Mr. Smith did not earn an award in 2011 because the Company earned less
than $0.40 per share.
Benefits and Perquisites
.
Determining
Benefit Levels
. Benefit levels are reviewed periodically to
ensure that the plans and programs provided are competitive and cost-effective
for us, and support our human capital needs. Benefit levels are not tied to
company, business area or individual performance.
Perquisites
. We provide our named
executive officers with perquisites that we believe are reasonable, competitive
and consistent with our overall executive compensation program. The value of
the perquisites for each named executive officer in the aggregate is less than
$10,000.
Health,
Dental, Disability and Life Insurance Coverage
. The core insurance package for our named
executive officers and senior management team includes health, dental,
disability and basic group life insurance
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23
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Capital City Bank Group,
Inc. Notice of Annual Meeting and Proxy Statement
|
coverage. Our named executives and senior management
participate in these benefits on the same basis as our other associates.
Paid
Time-Off Benefits
. We
provide vacation and other paid holidays to all associates, including our named
executive officers and senior management team, which are comparable to those
provided at similarly sized financial institutions.
Post-Termination Compensation
and Benefits.
We provide retirement
benefits to named executive officers and senior management through a
combination of qualified (under the Internal Revenue Code) and nonqualified
plans.
Retirement
Plan
.
The Retirement Plan is a tax-qualified,
noncontributory defined benefit plan intended to provide for an associates
financial security in retirement. All full-time and part-time associates with
1,000 hours of service annually are eligible for the Retirement Plan.
401(k)
Plan
.
The 401(k) plan provides associates the opportunity
to save for retirement on a tax-favored basis. For associates hired after
January 1, 2002, the associates receive a reduced pension benefit under the
Retirement Plan and a 50% matching contribution under the 401(k) Plan. This
change was intended to be cost-neutral. Executives may elect to participate in
the 401(k) Plan on the same basis as our other similarly situated associates.
No named executive officers are currently eligible for the company-sponsored
match.
Supplemental
Executive Retirement Plan
.
Each of our named executive
officers participates in our Supplemental Executive Retirement Plan (SERP), a
nonqualified plan which provides benefits in excess of the Retirement Plan. The
SERP is designed to restore a portion of the benefits Messrs. Smith, Barron,
and Davis would otherwise receive under our Retirement Plan, if these benefits
were not limited by U.S. tax laws. This more closely aligns the benefits of
Messrs. Smith, Barron, and Davis with those of other Retirement Plan participants.
We have no obligation to fund the SERP but accrue for our anticipated
obligations under the SERP on an annual basis.
Impact
of Regulatory Requirements
Tax Deductibility of
Compensation.
Section 162(m) of the
Internal Revenue Code imposes a $1 million limit on the amount that a publicly
traded company may deduct for compensation paid to an executive officer who is
employed on the last day of the fiscal year. Performance-based compensation
is excluded from this $1 million limitation. A compensation arrangement will
not qualify as performance-based compensation if the payment to the executive
is triggered by termination, whether that be by the company without cause or by
the executive due to good reason or retirement. In general, our policy is to
provide compensation that we may fully deduct for income tax purposes. However,
in order to maintain ongoing flexibility of our compensation programs, our
Compensation Committee may from time to time approve annual compensation that
exceeds the $1 million limitation. We recognize that the loss of the tax
deduction may be unavoidable under these circumstances.
Federal Reserve and FDIC
Guidance
.
In June 2010, the
Federal Reserve issued final comprehensive guidance regarding the manner in
which banks and bank holding companies pay incentive compensation. In
accordance with the final guidance, all banking organizations supervised by the
Federal Reserve are required to review the incentive compensation arrangements
of: senior executive officers and others responsible for oversight of
company-wide activities or material business lines; individual employees,
including nonexecutive employees, whose activities may expose the bank to
material amounts of risk; and groups of employees who are subject to the same
or similar incentive compensation arrangements and who, in the aggregate, may
expose the bank to material amounts of risk. Our Compensation Committee has
conducted a review to ensure that compensation is structured in a manner so as
not to encourage excessive risk-taking.
In April 2011, as a
result of the Dodd-Frank Act, the federal banking regulators issued a proposed
rule which, if adopted, would affect incentive-based compensation for the
Companys executives. The proposed rule, among other
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|
Capital
City Bank Group, Inc. Notice of Annual Meeting and Proxy Statement
|
24
|
things, would prohibit certain types of
incentive-based compensation including (i) compensation which would be
unreasonable or disproportionate to the individuals services (excessive
compensation) and (ii) compensation that would encourage inappropriate risk
taking that could lead to a material loss. The Compensation Committee is
monitoring the progress of the proposed rule. The final rules are expected to
be adopted in 2012.
Conclusion
The
Compensation Committee believes the philosophy and objectives set forth have
allowed us to attract and retain talent needed to deliver above average
shareowner return. We believe that by tying incentive-based pay to Company
performance, behaviors are changed and management focus is placed on strategic
objectives of the Company. This philosophy, along with the stock ownership
expectations and current levels of ownership by our senior management, aligns
the interests of management with that of shareowners. We believe our
compensation philosophy and objectives have been successful in attracting and
retaining qualified executives with capabilities that enable the Company to
achieve or exceed its long-term performance targets.
COMPENSATION
COMMITTEE REPORT
We, as a Compensation
Committee, have reviewed and discussed with management the Compensation
Discussion and Analysis required by Item 402(b) of Regulation S-K included in
this Proxy Statement. Based on that review and discussion, we have recommended
to the Board of Directors of the Company that the Compensation Discussion and
Analysis be included in this Proxy Statement.
2011
Compensation Committee
Cader B. Cox, III
(Chair)
DuBose Ausley
J. Everitt Drew
This
report shall not be deemed to be incorporated by reference by any general
statement incorporating by reference this Proxy Statement into any filing under
the Securities Act of 1933, or the Securities Exchange Act of 1934, and shall
not otherwise be deemed filed under these acts
.
COMPENSATION
COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
The following
non-associate directors were the members of the Compensation Committee of the
Board of Directors during 2011: Cader B. Cox, III (Chair), DuBose Ausley, and
J. Everitt Drew. None of the members of the Compensation Committee was an
officer or an employee of ours or any of our subsidiaries in 2011. None of the
members of the Compensation Committee was ever an officer of ours except Mr.
Ausley, who was our Chairman from 1982 to 2003, but not our Chief Executive
Officer or President. Mr. Ausley has not received a salary for serving as our
Chairman since 1998. In addition, there were no compensation committee
interlocks during 2011.
|
|
25
|
Capital City Bank Group,
Inc. Notice of Annual Meeting and Proxy Statement
|
INFORMATION
ABOUT EXECUTIVE COMPENSATION
Summary
Compensation Table for 2011, 2010, and 2009
The following summary
compensation table shows compensation information for our principal executive
officer, principal financial officer, and our president (the only other
executive officer whose total compensation exceeded $100,000) for the fiscal
year ended December 31, 2011.
We have no employment
agreements with our named executive officers. Amounts listed under column (g),
Nonequity Incentive Plan Compensation are determined by the Compensation
Committee at its first meeting following the year in which the compensation is
earned and paid to the executives shortly after such determination is made.
|
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|
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(a)
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(b)
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(c)
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(d)
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(e)
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(f)
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(g)
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(h)
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(i)
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(j)
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Name and
Principal
Position
|
|
Year
|
|
Salary
($)
|
|
Bonus
($)
(1)
|
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Stock
Awards
($)
|
|
Option
Awards
($)
|
|
Nonequity
Incentive Plan
Compensation
($)
(2)
|
|
Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings
($)
(3)
|
|
All Other
Compensation
($)
(4)
|
|
Total
($)
|
|
William G.
Smith, Jr.
|
|
2011
|
|
304,000
|
|
37,314
|
|
|
0
|
|
|
0
|
|
|
86,645
|
|
|
387,506
|
|
|
1,032
|
|
816,497
|
|
Chairman, President, and
|
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2010
|
|
285,000
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|
0
|
|
|
0
|
|
|
0
|
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182,046
|
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380,927
|
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|
1,118
|
|
849,091
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Chief Executive Officer
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2009
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285,000
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88,875
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|
0
|
|
|
0
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|
|
0
|
|
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187,986
|
|
|
1,032
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562,893
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Thomas A.
Barron
|
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2011
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252,000
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24,082
|
|
|
0
|
|
|
0
|
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71,027
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|
362,674
|
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|
1,032
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710,815
|
|
President, Capital City
|
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2010
|
|
245,000
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|
0
|
|
|
0
|
|
|
0
|
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103,248
|
|
|
356,527
|
|
|
1,118
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|
705,947
|
|
Bank
|
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2009
|
|
245,000
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|
86,040
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|
|
0
|
|
|
0
|
|
|
0
|
|
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179,164
|
|
|
1,032
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|
511,236
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J.
Kimbrough Davis
|
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2011
|
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243,800
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12,344
|
|
|
0
|
|
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0
|
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91,379
|
|
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311,433
|
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|
1,032
|
|
659,988
|
|
Executive Vice President
|
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2010
|
|
239,000
|
|
0
|
|
|
0
|
|
|
0
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70,433
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195,269
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|
|
1,204
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505,906
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and Chief Financial Officer
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2009
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239,000
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44,400
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0
|
|
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0
|
|
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0
|
|
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169,556
|
|
|
1,032
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453,988
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|
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(1)
|
The
amount in column (d) for 2011 reflects a special discretionary bonus paid in
January 2012 to all of our associates, including the named executive
officers. Further detail is provided on page 21-23 under the heading Incentive
Compensation-Special Discretionary Bonus.
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(2)
|
The amounts in column (g) reflect the cash awards to the
named individuals under the Cash Bonus Plan, which is discussed in further
detail on page 22 under the heading Cash Incentives. In 2009, the Cash Bonus
Plan was discretionary and not plan-based, and therefore, the amounts in 2009
were listed under column (d). For Mr. Smith, awards were earned out at
58.49%, 122.9%, 60% of the target awards for 2011, 2010, and 2009,
respectively. Mr. Smith declined his award in 2009 and 2010. For Mr. Barron,
awards were paid out at 49.67%, 72.09%, and 60%, of the target awards for
2011, 2010, and 2009, respectively. For Mr. Davis, awards were paid out at
123.49%, 95.18%, and 60%, of the target awards for 2011, 2010, and 2009,
respectively.
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(3)
|
The amounts in column (h) reflect the actuarial increase
in the present value of the named executive officers benefits under all
pension plans established by us determined using the assumptions consistent
with those used in our financial statements, which are discussed in further
detail on page 29 under the heading Pension Benefits.
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(4)
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The
amount shown in column (i) reflects for each named executive officer a life
insurance premium.
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|
|
Capital
City Bank Group, Inc. Notice of Annual Meeting and Proxy Statement
|
26
|
Grants
of Plan-Based Awards in 2011
As
discussed in the Compensation Discussion and Analysis, cash bonus plan payouts
and performance share units are granted only when we achieve Board approved
established levels of performance.
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Estimated Possible Payouts Under
Nonequity Incentive Plan Awards
|
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Estimated Future Payouts Under
Equity Incentive Plan Awards
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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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Name
|
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Award
Type
|
|
Grant
Date
|
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Threshold
($)
|
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Target
($)
|
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Maximum
($)
|
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Threshold
(#)
|
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Target
(#)
|
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Maximum
(#)
|
|
William G. Smith, Jr.
|
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Cash
|
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N/A
|
|
|
0
|
|
|
148,125
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|
|
296,250
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|
|
|
|
|
|
|
|
|
|
|
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Stock
|
|
2/22/11
|
|
|
|
|
|
|
|
|
|
|
|
4,299
|
|
|
8,599
|
|
|
12,898
|
|
|
|
LTIP
(1)
|
|
4/12/11
|
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|
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|
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$
|
0
|
|
$
|
750,000
|
|
$
|
1,500,000
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Thomas A. Barron
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Cash
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N/A
|
|
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0
|
|
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143,400
|
|
|
286,800
|
|
|
|
|
|
|
|
|
|
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Stock
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|
2/22/11
|
|
|
|
|
|
|
|
|
|
|
|
2,775
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|
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5,550
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|
|
8,324
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|
J. Kimbrough Davis
|
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Cash
|
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N/A
|
|
|
0
|
|
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74,000
|
|
|
148,000
|
|
|
|
|
|
|
|
|
|
|
|
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Stock
|
|
2/22/11
|
|
|
|
|
|
|
|
|
|
|
|
1,422
|
|
|
2,844
|
|
|
4,267
|
|
|
|
(1)
|
Represents
the long-term incentive plan pursuant to which we award performance shares
with an economic value equivalent ranging from $0 - $500,000, including a 31%
tax supplement bonus. Each year of the three year plan, there is a target
award of $250,000 and a maximum award of $500,000. In 2011, the target award
was based on the Company earning $0.47 per share in 2011. In 2012 and 2013,
these awards are based on compounded growth in diluted earnings per share.
The number of performance shares that can be earned is calculated based on
the average high and lows of the previous 10 trading days from date of grant
(February 22, 2011). The formula is set by the terms of the 2011 Associate
Incentive Plan.
|
Outstanding Equity Awards at Fiscal Year-End
2011
The
following table provides information on outstanding equity awards for our
executive officers named in the Summary Compensation Table at the end of 2011.
We ceased granting stock options in 2007.
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|
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Option Awards
|
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Stock Awards
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Incentive
Plan Awards:
Number of
Unearned
Shares, Units or
Other Rights
That Have Not
Vested
(#) (1)
|
|
Equity Incentive
Plan Awards:
Number of
Unearned
Shares, Units or
Other Rights
That Have Not
Vested
($)
|
|
|
|
|
|
|
|
Equity Incentive
Plan Awards:
Number of
Securities
Underlying
Unexercised
Unearned Options
(#)
|
|
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Number of Securities
Underlying Unexercised
Options
(#)
|
|
|
|
|
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|
|
|
|
|
|
|
Option
Exercise
Price
($)
|
|
|
|
|
|
|
|
|
|
|
Option
Expiration
Date
|
|
|
|
|
|
|
|
|
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|
Name
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable
|
|
Unexercisable
|
|
|
|
|
|
|
|
|
|
|
|
William G.
Smith, Jr.
|
|
23,138
|
|
0
|
|
|
|
32.96
|
|
3/12/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,246
|
|
0
|
|
|
|
32.69
|
|
3/14/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60,200
|
|
574,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This column
reflects performance shares granted in 2011. These shares are conditioned
upon a component of an equity security (compounded growth in diluted earnings
per share) performance during a three-year cycle ending on December 31, 2013.
An award, if earned, will be determined and be paid following the end of each
year in the three-year performance period. No award was earned in 2011. Thus,
this column reflects the potential awards payable in the last two years of
the three-year plan.
|
Option Exercises
None
of our named executive officers exercised stock options during the 2011 fiscal
year.
|
|
27
|
Capital City
Bank Group, Inc. Notice of Annual Meeting and Proxy Statement
|
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE
IN CONTROL
The
amount of compensation (if any) that is payable to our named executive officers
upon termination of employment depends on the nature and circumstances under
which employment is ended.
Change in Control
In
the event of a change in control, our named executive officers will be credited
with an additional two years of credited service for purposes of computation of
retirement benefits payable under the SERP. Accrued benefits based upon normal
retirement are payable to the named executive officer upon a change in control.
A change in control under the SERP means the sale of substantially all of our
assets, a change in share ownership of greater than 50% within a 24-month period,
or any other determination of change in control made by our Board of Directors.
In
the event of a change in control, our named executive officers would not
receive any additional benefit under the qualified Retirement Plan but would
have the same benefits as any associate who separates employment with the
Company.
We
have no post-employment compensation programs designed to provide benefits upon
our change in control, other than those discussed above.
Payments Upon Termination of Employment
Voluntary Termination.
If
a named executive officer voluntarily resigns from our employment, no amounts
are triggered under the Cash Bonus Plan or the Stock-Based Incentive Plan. The
executive may be entitled to receive benefits from the Retirement Plan and the
SERP to the extent those benefits have been earned under the provisions of the
plans and the executive officer has met the vesting requirements of the plans.
In addition, the executive would be entitled to receive any amounts voluntarily
deferred (and the earnings on deferrals) under the 401(k) Plan.
Early
Retirement.
As
of December 31, 2011, Messrs. Smith, Barron, and Davis are eligible for early
retirement as defined by the Retirement Plan and the SERP. As such, each may be
entitled to receive benefits from the Retirement Plan and SERP to the extent
those benefits have been earned under the provisions of the plans.
Death.
If a
named
executive officer dies while employed by us, the Retirement Plan and the SERP
will provide benefits to the heirs of the deceased executive. The benefits are
of the same value as those provided for a voluntary termination or early
retirement as applicable.
Involuntary Termination
with or without Cause.
If a named executive officers employment is
involuntarily terminated, the executive may be entitled to receive benefits
from the Retirement Plan and the SERP to the extent those benefits have been
earned under the provisions of the plans and the executive officer has met the
vesting requirements of the plans. In addition, the executive would be entitled
to receive any amounts voluntarily deferred (and the earnings on deferrals)
under the 401(k) Plan.
Disability.
In
the
event that a named executive officer becomes disabled on a long-term basis, the
executive officers employment by us would not necessarily terminate.
Therefore, we do not disclose any such amounts in the table below. If a named
executive officer becomes disabled under the terms of the Retirement Plan or
the SERP, the executive will continue to accrue a retirement benefit until the
earliest of recovery, death or retirement. This benefit cannot be paid as a
lump sum distribution.
|
|
Capital City Bank Group, Inc. Notice of Annual Meeting and Proxy
Statement
|
28
|
Payment Tables
Each named executive officer
would have
received the following payments had his employment terminated on December 31,
2011 under the following triggering events:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Compensation
Components
|
|
Change in
Control
(1)
|
|
Voluntary
Termination
(1)
|
|
Early
Retirement
(1)
|
|
Death
(1)
|
|
Disability
(2)
|
|
Involuntary
Termination
(1)
|
|
|
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
|
(e)
|
|
(f)
|
|
(g)
|
|
William G.
Smith, Jr.
|
|
Retirement
Plan
|
|
$
|
1,883,485
|
|
$
|
1,883,485
|
|
$
|
1,883,485
|
|
$
|
1,883,485
|
|
$
|
16,250
|
|
$
|
1,883,485
|
|
|
|
SERP
|
|
|
1,511,651
|
|
|
1,511,651
|
|
|
1,511,651
|
|
|
1,511,651
|
|
|
|
|
|
1,511,651
|
|
Thomas A.
Barron
|
|
Retirement
Plan
|
|
|
2,144,472
|
|
|
2,144,472
|
|
|
2,144,472
|
|
|
2,144,472
|
|
|
16,250
|
|
|
2,144,472
|
|
|
|
SERP
|
|
|
1,203,342
|
|
|
1,203,342
|
|
|
1,203,342
|
|
|
1,203,342
|
|
|
|
|
|
1,203,342
|
|
J.
Kimbrough Davis
|
|
Retirement
Plan
|
|
|
1,677,777
|
|
|
1,677,777
|
|
|
1,677,777
|
|
|
1,677,777
|
|
|
16,014
|
|
|
1,677,777
|
|
|
|
SERP
|
|
|
299,646
|
|
|
299,646
|
|
|
299,646
|
|
|
299,646
|
|
|
|
|
|
299,646
|
|
|
|
(1)
|
Lump Sum
.
Lump sum
payments are determined as of December 31, 2011 using the Retirement Plans
applicable basis, namely, the mortality table found in Revenue Ruling 2008-85
and a three segment yield curve using rates specified in Revenue Notice
2010-93, which are 2.16% for the first 5 years, 4.77% for the next 15 years,
and 6.05% thereafter. Under the Retirement Plan and the SERP, lump sum
payments are triggered upon a change in control, voluntary termination,
retirement, death, and involuntary termination. No further benefits would be
payable after the lump sum payment is made.
|
|
|
(2)
|
Annuity Payments.
In the event
that a named executive officer becomes disabled on a long-term basis, the
named executive officer would receive annuity payments beginning at age 65.
These payments coordinate with our long-term disability program.
|
PENSION BENEFITS
Retirement Plan
The
key provisions of the Retirement Plan are as follows:
Monthly
Benefit.
Participants
with a vested benefit will be eligible to receive the following retirement
benefits each month for the rest of their lives beginning at age 65:
|
|
|
|
§
|
1.90% of
final average monthly compensation multiplied by years of service after 1988
(limited to 30 years), plus
|
|
|
|
|
§
|
0.40% of
final average monthly compensation in excess of $2,000 multiplied by years of
service after 1988 (generally limited to 30 years), plus
|
|
|
|
|
§
|
the monthly
benefit accrued as of December 31, 1988 updated for salary increases since
1988
|
Total
benefits are limited by the Internal Revenue Code. In 2011, the limit was
$195,000 per year or $16,250 per month. Additional provisions may apply for
participants who were hired after January 1, 2002 or who worked for a bank that
we acquired.
Final Average Monthly
Compensation
.
The final average monthly compensation is
the average of the highest five consecutive years of W-2 earnings (plus 401(k)
deferrals) within the previous 10 years. Compensation is limited to the limits
described in the Internal Revenue Code, which was $245,000 per year (or $20,416
per month) for 2011.
Beginning
in 2008, the value of equity awarded under any of our incentive compensation
plans has been included in the average monthly compensation. Effective January
1, 2012, the final average monthly compensation is the average of the highest
five years of W-2 earnings (plus 401(k) deferrals) within the previous 10
years, regardless of whether the years occur consecutively. The January 1, 2012
amendment would not have had an impact on Messrs. Smith and Barron as of
December 31, 2011. Mr. Daviss lump sum payment from the SERP would have
increased by $75,000 as of December 31, 2011.
|
|
29
|
Capital City
Bank Group, Inc. Notice of Annual Meeting and Proxy Statement
|
Vesting
.
Participants become vested after reaching
five years of service.
Early Retirement
Benefits
.
Participants may elect to retire prior to
their Normal Retirement Date.
Reduced
Retirement:
If participants are
at least age 55 and have at least 15 years of service, then they may commence
benefits early on a reduced basis. The monthly benefit will be calculated using
the benefit formula described above, reduced 6.67% times the number of years
(up to five) that the benefit commencement date precedes the normal retirement
date, and 3.33% times any additional years (up to five).
Unreduced
Retirement:
If participants
are at least age 61 and have at least 30 years of service, then they may
commence benefits early on an unreduced basis. The monthly benefit will be
calculated using the benefit formula described above, reduced 6.67% times the
number of years (up to five) that the benefit commencement date precedes the
later of age 61 or 30 years of service, and 3.33% times any additional years
(up to five).
Form of
Payment
.
Participants may receive their pension
benefit as an annuity or as a lump sum.
SERP
In
general, the plan provisions for the SERP are identical to the provisions of
the Retirement Plan, except the benefits are calculated without regard to the
limits set by the Internal Revenue Code on compensation and benefits. The net
benefit payable from the SERP is the difference between this gross benefit and
the benefit payable by the Retirement Plan. The SERP limits gross benefits to
60% of final average monthly compensation. As a general rule, we do not grant
extra years of service under the SERP. Exceptions may occur in limited instances
such as a mid-career hire.
2011 Pension Benefit Table
The
following table shows the years of credited service, present value of the
accumulated benefit for the named executive officers as of December 31, 2011,
assuming payment at age 61, and payments made during the last fiscal year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
|
Plan Name
|
|
Number of Years of
Credited Service
(#)
|
|
Present Value of
Accumulated Benefit
(1)
($)
|
|
Payments During Last
Fiscal Year
($)
|
|
William G.
Smith, Jr.
|
|
|
Retirement Plan
|
|
|
33
|
|
|
1,904,480
|
|
|
0
|
|
|
|
|
Supplemental Executive
Retirement Plan
|
|
|
33
|
|
|
1,535,596
|
|
|
0
|
|
Thomas A.
Barron
|
|
|
Retirement Plan
|
|
|
37
|
|
|
2,133,024
|
|
|
0
|
|
|
|
|
Supplemental Executive
Retirement Plan
|
|
|
37
|
|
|
1,202,419
|
|
|
0
|
|
J.
Kimbrough Davis
|
|
|
Retirement Plan
|
|
|
30
|
|
|
1,705,306
|
|
|
0
|
|
|
|
|
Supplemental Executive
Retirement Plan
|
|
|
30
|
|
|
384,155
|
|
|
0
|
|
|
|
(1)
|
Because the pension amounts
shown in the Summary Compensation Table and the Pension Benefits Table are
projections of future retirement benefits, numerous assumptions must be
applied. In general, the assumptions should be the same as those used to
calculate the pension liabilities in accordance with U.S. GAAP on the
measurement date, although the Security and Exchange Commission permits
certain exceptions. The assumptions we use are described in Note 12 of our
financial statements in the Annual Report on Form 10-K for the year ended
December 31, 2011, as filed with the Security and Exchange Commission. As
described in such note, the discount rate assumption is 5.00%. The
accumulated benefit is based on service and W-2 earnings (plus 401(k)
deferrals, as described above) considered by the plans for the period through
December 31, 2011. We also assumed that for the Retirement Plan, 80% of
participants would elect to receive a lump sum and 20% of participants would
elect to receive an annuity. For the SERP, we assumed 100% of participants
would elect a lump sum. We used a 5.00% interest rate for any lump sum
payments. The post-retirement mortality assumption is based on the prescribed
mortality assumption under IRC 430(h)(3)(A) using static tables with separate
mortality for annuitants and nonannuitants. The changes in the pension values
shown in the Summary Compensation Table are determined as the change in the
values during the fiscal year (including the impact of changing assumptions
from the prior fiscal year). The amendment described in the definition of
Final Average Monthly Compensation has been reflected in the values shown
above. This is consistent with the amendments treatment in the Banks
disclosures of the pension plans as of December 31, 2011.
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|
|
Capital City Bank Group, Inc. Notice of Annual Meeting and Proxy
Statement
|
30
|
The
Audit Committee, which operates under a written charter adopted by the Board of
Directors, monitors the Companys financial reporting process on behalf of the
Board of Directors. This report reviews the actions taken by the Audit
Committee with regard to the Companys financial reporting process during 2011
and particularly with regard to the Companys audited consolidated statements
of financial condition as of December 31, 2011 and 2010, and the related
statements of income, changes in shareowners equity, and cash flows for each
of the years in the three-year period ended December 31, 2011.
The
Audit Committee believes that it has taken the actions necessary or appropriate
to fulfill its oversight responsibilities under the Audit Committees charter.
In fulfilling its oversight responsibilities, the Audit Committee reviewed and discussed
with management the audited financial statements to be included in the
Companys Annual Report on Form 10-K for the year ended December 31, 2011,
including a discussion of the quality (rather than just the acceptability) of
the accounting principles, the reasonableness of significant judgments, and the
clarity of disclosures in the financial statements.
The
Audit Committee also reviewed with Ernst & Young their judgments as to
quality (rather than just the acceptability) of the Companys accounting
principles and such other matters as are required to be discussed with the
Audit Committee under statement on Auditing Standards No. 114,
The Auditors Communication with those
Charged with
Governance
, as amended (AICPA,
Professional
Standards
, Vol. 1. AU section 380), as adopted by the Public
Accounting Oversight Board in Rule 3200T. In addition, the Audit Committee
discussed with Ernst & Young, the auditors independence from management
and the Company, including the written disclosures, letter, and other matters
required of Ernst & Young by the Public Company Accounting Oversight Board.
Additionally,
the Audit Committee discussed with the Companys internal and independent
auditors the overall scope and plan for their respective audits. The Audit
Committee met with the internal and independent auditors, with and without
management present, to discuss the results of their examinations, their
evaluations of the Companys internal controls, and the overall quality of the
Companys financial reporting.
In
reliance on the reviews and discussions referred to above, the Audit Committee
recommended to the Board of Directors that the audited financial statements be
included in the Companys Annual Report on Form 10-K for the year ended
December 31, 2011, for filing with the Securities and Exchange Commission.
2011 Audit Committee:
Frederick Carroll, III, (Chair)
J. Everitt Drew
John K. Humphress
Henry Lewis III
This report shall not be deemed to be
incorporated by reference by any general statement incorporating by reference
this Proxy Statement into any filing under the Securities Act of 1933 or the
Securities Exchange Act of 1934, and shall not otherwise be deemed filed under
these Acts.
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P
ROPOSAL NO. 2 - RATIFICATION OF AUDITORS
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Appointment of Auditor
Our
Audit Committee expects to appoint Ernst & Young LLP as our independent
auditor for the 2012 fiscal year. Shareowner ratification of the appointment of
Ernst & Young as our independent public accountants is not required by our
Bylaws or other applicable legal requirement. However, the Board is submitting
the expected appointment of Ernst & Young to the shareowners for
ratification as a matter of good corporate practice. If the shareowners fail to
ratify the expected appointment of Ernst & Young LLP, the Audit Committee
will reconsider whether or not to retain that firm. Even if the expected
appointment of Ernst & Young LLP is ratified, the Audit
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31
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Capital City
Bank Group, Inc. Notice of Annual Meeting and Proxy Statement
|
Committee at
its discretion may direct the appointment of a different independent accounting
firm at any time during the year if it determines that such a change would be
in our and our shareowners best interests.
Representatives
of Ernst & Young may attend the 2012 Annual Meeting and, if in attendance,
will have an opportunity to make a statement if they so desire and to respond
to appropriate questions.
The
proposal to ratify the expected appointment of Ernst & Young as independent
auditors will be approved if the votes cast by the shareowners present, or
represented, at the Annual Meeting and entitled to vote on the matter favoring
this proposal exceed the votes cast in opposition to the proposal.
|
The Board of
Directors unanimously recommends a vote FOR
ratification of the expected appointment of Ernst & Young as independent
auditor for the 2012 fiscal year.
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A
UDIT FEES AND RELATED MATTERS
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FEES PAID TO PRINCIPAL ACCOUNTANTS
The
following table represents aggregate fees, including out-of-pocket expenses,
paid or to be paid to Ernst & Young for the 2011 and 2010 fiscal years.
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2011
|
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2010
|
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Audit Fees
|
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$
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1,063,225
|
|
$
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667,000
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Audit-Related Fees
|
|
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22,726
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|
|
21,277
|
|
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Tax Fees
|
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160,820
|
|
|
94,900
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All Other Fees
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Total
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$
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1,246,771
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$
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783,177
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Audit
fees primarily represent amounts billed to us for auditing our annual
consolidated financial statements (including services incurred with rendering
an opinion under Section 404 of the Sarbanes-Oxley Act of 2002), reviewing the
financial statements included in our Quarterly Reports on Form 10-Q, and for
services that are normally provided by the auditor in connection with statutory
and regulatory filings. Tax fees are fees related to the preparation of our
original and amended tax returns, claims for refunds, and tax planning. Tax
fees include $82,000 and $82,900 for tax compliance services in 2011 and 2010,
respectively. Total 2011 and 2010 fees include $79,351 and $72,277 in
out-of-pocket expenses, respectively.
POLICY ON AUDIT COMMITTEE PRE-APPROVAL OF
AUDIT AND NONAUDIT SERVICES OF INDEPENDENT AUDITOR
The
Audit Committees policy is to pre-approve all audit and nonaudit services
provided by the independent auditors. These services may include audit
services, audit-related services, tax services, and other services.
Pre-approval is generally provided for up to 12 months from the date of
pre-approval, and any pre-approval is detailed as to the particular service or
category of services and is generally subject to a specific budget. The Audit
Committee may delegate pre-approval authority to one or more of its members
when expedition of services is necessary. The independent auditors and
management are required to periodically report to the full Audit Committee
regarding the extent of services provided by the independent auditors in
accordance with this pre-approval policy and the fees for the services
performed to date. The Audit Committee pre-approved all audit and nonaudit
services provided by Ernst & Young.
The
Audit Committee has determined that the nonaudit services provided by Ernst
& Young during the fiscal year ended December 31, 2011 were compatible with
maintaining their independence.
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|
Capital City Bank Group, Inc. Notice of Annual Meeting and Proxy
Statement
|
32
|
ANNUAL REPORT
We
filed an annual report for the fiscal year ended December 31, 2011, on Form
10-K with the U.S. Securities and Exchange Commission.
Shareowners may obtain, free of charge, a copy of our
annual report on Form 10-K by writing to our Corporate Secretary at our
principal offices.
HOUSEHOLDING
We
have adopted a procedure approved by the Securities and Exchange Commission
known as householding. Under this procedure, shareowners of record who have
the same address and last name will receive only one set of proxy materials,
unless one or more of these shareowners notifies our transfer agent that they
wish to continue receiving individual copies. This procedure will reduce our
printing costs and postage fees. If you wish to receive your own copy of these
materials, you may contact our transfer agent, American Stock Transfer &
Trust Company, in writing, by telephone, or on the Internet:
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American
Stock Transfer & Trust Company
|
|
59 Maiden
Lane, Plaza Level
|
|
New York, NY
10038
|
|
(800)
937-5449 (U.S. and Canada)
|
|
(718)
921-8124 (International)
|
|
www.amstock.com
|
If
you are eligible for householding, but you and other shareowners of record with
whom you share an address currently receive multiple copies of our Notice of
Annual Meeting, Proxy Statement, and Annual Report, or if you hold stock in
more than one account, and in either case you wish to receive only a single
copy of each document for your household, please contact our transfer agent as
indicated above. Beneficial owners can request information about householding
from their banks, brokers, or other holders of record.
SHAREOWNER PROPOSALS
Shareowner
proposals that are to be included in the Proxy Statement for the 2013 meeting
must be received by November 9, 2012. Shareowner proposals for the 2013 meeting
that are not intended to be included in the Proxy Statement for that meeting
must be received by January 23, 2013, or the Board of Directors can vote the
proxies in its discretion on the proposal. Proposals must comply with the proxy
rules and be submitted in writing to J. Kimbrough Davis, Corporate Secretary,
at our principal offices.
DIRECTOR NOMINATIONS
Any
shareowner entitled to vote generally in the election of directors may
recommend a candidate for nomination as a director. A shareowner may recommend
a director nominee by submitting the name and qualifications of the candidate
the shareowner wishes to recommend, pursuant to Article VII of our Articles of
Incorporation, to Corporate Governance and Nominating Committee of the Board of
Directors, c/o Capital City Bank Group, Inc., 217 North Monroe Street.
Tallahassee, Florida 32301. To be considered, recommendations with respect to
an election of directors to be held at an annual meeting must be received no
earlier than 180 days and no later than 120 days prior to March 9, 2013, the
first anniversary of this years Notice of Annual Meeting date. In other words,
director nominations must be received no earlier than September 10, 2012, and
no later than November 9, 2012. Recommendations with respect to an election of
directors to be held at a special meeting called for that purpose must be
received by the 10
th
day following the date on which notice of the
special meeting was first mailed to shareowners. Recommendations meeting these
requirements will be brought to the attention of the Corporate Governance and
Nominating Committee. Candidates for director recommended by shareowners are
afforded the same consideration as candidates for director identified by our
directors, executive officers, or search firms, if any, employed by us.
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33
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Capital City
Bank Group, Inc. Notice of Annual Meeting and Proxy Statement
|
CAPITAL CITY BANK GROUP, INC.
ATTN: J. KIMBROUGH DAVIS
217 NORTH MONROE STREET
TALLAHASSEE, FL 32301
VOTE BY INTERNET -
www.proxyvote.com
Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the
day before the meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your
records and to create an electronic voting instruction form.
ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS
If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future
proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery,
please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access
proxy materials electronically in future years.
VOTE BY PHONE - 1-800-690-6903
Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the 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.
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TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:
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M40643-P19797
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KEEP THIS PORTION FOR YOUR RECORDS
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DETACH AND RETURN THIS PORTION ONLY
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THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
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CAPITAL CITY BANK GROUP, INC.
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For
All
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Withhold
All
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For All
Except
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To withhold authority to vote for any individual nominee(s), mark For All Except and write the number(s) of the nominee(s) on the
line below.
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The Board of Directors recommends you
vote FOR the following:
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o
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o
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o
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Vote on Directors
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1.
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Election of Directors
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Nominees:
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01) DuBose Ausley
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02) Frederick Carroll, III
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03) John K. Humphress
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04) Henry Lewis III
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Vote on Proposal
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The Board of Directors recommends you vote FOR the following proposal:
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For
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Against
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Abstain
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2.
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To ratify the expected appointment of Ernst & Young LLP as auditors of the Company for fiscal year ending December 31, 2012.
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o
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o
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o
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NOTE:
In the discretion of the Proxies, to approve such other business as may properly come before the meeting or any adjournments
and/or postponements of the meeting.
THIS PROXY WILL BE VOTED AS DIRECTED, BUT IF NO DIRECTIONS ARE GIVEN ON THE PROXY, THE SHARES REPRESENTED BY THE PROXY WILL BE VOTED
FOR PROPOSALS 1 AND 2 AND AS DETERMINED BY THE PROXIES ON ANY OTHER MATTER THAT MAY PROPERLY BE BROUGHT AT THE MEETING. THE
UNDERSIGNED SHAREOWNER(S) HEREBY ACKNOWLEDGES RECEIPT OF THE NOTICE OF ANNUAL MEETING AND PROXY STATEMENT.
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Yes
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No
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Please indicate if you plan to attend this meeting.
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o
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o
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Please sign exactly as your name(s) appear(s) hereon. When signing as 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.
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Signature [PLEASE SIGN WITHIN
BOX]
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Date
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Signature (Joint Owners)
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Date
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Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:
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The Notice and Proxy Statement and Form 10-K are available at www.proxyvote.com.
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M40644-P19797
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CAPITAL CITY BANK GROUP, INC.
217 North Monroe Street
Tallahassee, Florida 32301
|
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PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF
CAPITAL CITY BANK GROUP, INC.
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FOR THE ANNUAL MEETING OF SHAREOWNERS APRIL 24, 2012
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As an alternative to completing this form, you may enter your vote instruction by telephone at 1-800-690-6903, or via the Internet at
WWW.PROXYVOTE.COM and follow the simple instructions. Use the twelve digit Control Number shown on your proxy card.
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KNOW ALL MEN BY THESE PRESENTS that I, the undersigned shareowner of Capital City Bank Group, Inc. (the Company), Tallahassee,
Florida, do hereby nominate, constitute and appoint Randolph M. Pople and Dale A. Thompson (collectively, the Proxies), or any one
of them (with full power to act alone), my true and lawful attorneys and proxies with full power of substitution, for me and in my
name, place and stead to vote all the shares of Common Stock of the Company that the shareowner signing this Proxy Card is entitled
to vote at the annual meeting of its shareowners to be held at Florida State University, Turnbull Conference Center, 555 West
Pensacola Street, Tallahassee, Florida on Tuesday, April 24, 2012, at 10:00 a.m., and at any adjournments or postponements thereof,
as instructed on the reverse side of this Proxy Card and in the Proxies discretion on other matters. All proxies previously given or
executed by the shareowner signing this Proxy Card are hereby revoked.
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Continued and to be signed on reverse side
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