In 2016, as noted above, the Compensation Committee changed the vesting schedule upon which
performance-based restricted stock unit awards are deemed to be earned. With respect to the 2016, 2017, 2018 and 2019 Regular RSU Awards, the number of RSUs that vest is determined on the third, fourth and fifth anniversary from the date of grant
whereas vesting of 2014 and 2015 Regular RSU Awards are determined annually for each year in the five-year period from the date of grant. The Compensation Committee believes this change to the vesting schedule so that no awards are subject to
vesting until three years or more from the date of grant is consistent with the long term performance goals these awards are intended to reward. Accordingly, the performance period of all Regular RSU Awards issued in 2016, 2017, 2018 and 2019 is no
less than three, and up to five, years in duration.
In 2018, the Compensation Committee changed the method to determine the Performance
Hurdle (1) to reference the average of the percentage change (positive or negative) in operating income and pre-tax income per diluted share as opposed to the average of the percentage change (positive or
negative) in operating income and diluted earnings per share and (2) to remove the 5% positive adjustment previously included in the Performance Hurdle. The change to reference pre-tax income per diluted
share rather than diluted earnings per share was implemented in order to use a financial metric that will not be impacted by changes to applicable tax rates, and in particular, potential future changes to the federal corporate tax rate, during the
performance period of the applicable RSU. The change to remove the 5% positive adjustment was made as part of an overall review of the Companys executive compensation program in light of other changes made to Named Executive salaries and
grants under the Companys Regular Restricted Stock program referred to below.
Stock-based Awards Regular Restricted Stock
Awards
In 2016, the Compensation Committee initiated Regular Restricted Stock Awards to each of the Named Executives. On
January 29, 2016, 13,518 shares of restricted stock were issued in the aggregate to Named Executives that vest in three equal annual installments on January 31 of 2017, 2018 and 2019. Under these restricted stock awards, Mr. Gattoni
received 4,506 shares, and Messrs. Beacom, Kneller, OMalley and Stout each received 2,253 shares. The Compensation Committee awarded Mr. Gattoni a larger grant in recognition of Mr. Gattonis broader responsibilities as
President and Chief Executive Officer of the Company.
On February 2, 2017, 9,055 shares of restricted stock were issued in aggregate
to Named Executives that vest in three equal annual installments on January 31 of 2018, 2019 and 2020. Under these restricted stock awards, Mr. Gattoni received 3,019 shares, and Messrs. Beacom, Kneller, OMalley and Stout each
received 1,509 shares. The Compensation Committee awarded Mr. Gattoni a larger grant in recognition of Mr. Gattonis broader responsibilities as President and Chief Executive Officer of the Company.
On May 1, 2017, the Compensation Committee awarded 5,813 shares of restricted stock to Mr. Coro in connection with his hiring as
Vice President and Chief Information Officer. The May 1, 2017 award vests in four equal annual installments on May 1 of 2018, 2019, 2020 and 2021.
On February 2, 2018, 14,235 shares of restricted stock were issued in aggregate to Named Executives that vest in three equal annual
installments on January 31 of 2019, 2020 and 2021. Under these restricted stock awards, Mr. Gattoni received 4,380 shares, Messrs. Beacom, Kneller, OMalley and Stout each received 2,190 shares and Mr. Coro received 1,095 shares.
The Compensation Committee awarded Mr. Gattoni a larger grant in recognition of Mr. Gattonis broader responsibilities as President and Chief Executive Officer of the Company. The Compensation Committee awarded Mr. Coro a smaller
grant in light of the overall compensation package agreed to with Mr. Coro in connection with his hiring as of May 1, 2017, which included, among other compensatory items, a cash sign-on bonus
payable over two years and a significant grant of restricted stock upon his first day of employment with the Company.
On February 1,
2019, 15,801 shares of restricted stock were issued in aggregate to Named Executives that vest in three equal annual installments on January 31 of 2020, 2021 and 2022. Under these restricted stock
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