2019 Executive Compensation
Supplemental 401(k) Plan. The executives are eligible to participate in the Supplemental 401(k) Plan. See Non-Qualified
Deferred Compensation on page 37 above for a discussion of this plan. If an executives employment terminates for any reason, he or she will receive the portion, if any, of his or her account that had vested prior to January 1, 2005 (plus
earnings) soon after the end of the month in which the termination occurs, and any remaining vested portion of his or her account will be paid the first day of the seventh month following the termination of employment. Each executives account
vests 20% per year, with full vesting upon the completion of five years of employment. Alternatively, the executives account fully vests upon attainment of age 65, disability, death or a change in control. If the executive dies on the date of
termination or during the six months following termination, the payment will be made as of the date of death. The form of the payment, whether stock or cash, is dependent upon the executives election. If his or her employment with the Company
terminated as of December 31, 2019, each executive would have been entitled to receive the following amount under the Supplemental 401(k) Plan: Mr. Thomas ($2,187,184), Duesenberg ($569,988), and Mr. Schlater ($84,130).
DB Plan and the Supplemental DB Plan. Mr. Thomas is the only executive named in the Summary Compensation Table who participates in the DB Plan and the
Supplemental DB Plan because these plans are available only to executives who were hired prior to July 1, 2003 (when the DB Plan was frozen as to new hires). If Mr. Thomass employment terminates, under the Supplemental DB Plan, he
would receive the portion, if any, of his benefit under the plans that had vested prior to January 1, 2005 (or he could begin the payment of that benefit in the form of an annuity) soon after the end of the month in which the termination
occurs, and any remaining vested portion of his account will be paid in a lump sum the first day of the seventh month following the termination of his employment. If Mr. Thomass employment had terminated on December 31, 2019,
then his estimated benefit under the Supplemental DB Plan would have been $147,000. In addition, if Mr. Thomass employment had terminated on December 31, 2019, he would receive a benefit under the DB Plan in the form of an annuity,
with 120 monthly payments guaranteed, beginning as early as January 1, 2020, in the gross amount of $2,003.53 per month (which includes a reduction for early commencement). Benefit Accruals under both the DB Plan and the Supplemental DB Plan
(including those of Mr. Thomas) were frozen on March 31, 2006. See Post-Employment Compensation on page 36 for a discussion of these plans.
LTIP.
The executives are also eligible to participate in the LTIP. (See the discussion of Long-Term Incentives in the Executive Compensation Discussion & Analysis on page 18 above for a description of the LTIP.) The LTIP allows the Company to
award different types of long-term incentives; however, the Compensation Committee has only awarded stock options, performance shares, performance share units, restricted shares, and restricted share units. For stock options, if an executive leaves
the Company under the Executive Separation Policy or for any reason other than a change in control, death, disability or retirement, he or she has three months to exercise stock options that were vested as of the date of separation and any options
that were not vested as of the date of separation from service are forfeited. If there is a change in control (whether or not the executive is terminated) or the executive leaves the Company as a result of death, disability or retirement, all
options previously awarded to such executive are fully vested and remain exercisable for the rest of the applicable option exercise period.
Performance share units
were granted under the LTIP to certain executives in 2019, 2018, and 2017. If an executive leaves the Company under the Executive Separation Policy or for any reason other than a change in control, death, disability or retirement, then he or she is
entitled to the value of the performance share units that have vested for completed performance periods, which will be provided to the executive in the form of a cash payment equal to 50% of the value of the performance share units and the other 50%
will be in the form of Common Stock. Any performance share units for any performance period that has not been completed are forfeited. If the executive leaves as a result of death, disability or retirement, the executive will receive prorated
vesting of performance share units, if earned, for performance periods that have not been completed as of the date of separation, which will be provided to the executive after the end of the performance period in the form of a cash payment equal to
50% of the value of the performance share units and the other 50% will be in the form of Common Stock.
Restricted share units were granted under the LTIP to
certain executives in 2019, 2018, and 2017. Those restricted share units vest three years from the date of the grant and then are subject to a two-year holding period. If the
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Ferro Corporation 2020 Proxy Statement
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