Proxy Statement (definitive) (def 14a)
April 02 2019 - 8:02AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. )
Filed by the Registrant ☒
Filed by a Party other than the Registrant ☐
Check the appropriate box:
☐
|
Preliminary Proxy Statement
|
☐
|
Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
|
☒
|
Definitive Proxy Statement
|
☐
|
Definitive Additional Materials
|
☐
|
Soliciting Material under
Section 240.14a-12
|
Ryman Hospitality Properties, Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
☐
|
Fee computed on table below per Exchange Act Rules
14a-6(i)(4)
and
0-11.
|
|
(1)
|
Title of each class of securities to which transaction applies:
|
|
(2)
|
Aggregate number of securities to which transaction applies:
|
|
(3)
|
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule
0-11
(set forth the amount on which the filing fee is calculated and state how it was determined):
|
|
(4)
|
Proposed maximum aggregate value of transaction:
|
☐
|
Fee paid previously with preliminary materials.
|
☐
|
Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2)
and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form of Schedule and the date of its filing.
|
|
(1)
|
Amount Previously Paid:
|
|
(2)
|
Form, Schedule or Registration Statement No.:
|
April 2, 2019
Dear Fellow
Stockholder:
I am pleased to invite you to attend the 2019 Annual Meeting of Stockholders of Ryman Hospitality Properties, Inc., which will be held
at 10:00 a.m. local time on Thursday, May 9, 2019 at the Gaylord Opryland Resort and Convention Center in Nashville, Tennessee. The doors will open at 9:30 a.m. local time. Our directors and management team will be available to answer
questions.
We describe in detail the proposals to be introduced at the annual meeting in the attached Notice of Annual Meeting, Proxy Statement and
proxy card. Our 2018 Annual Report to Stockholders, which is not a part of our proxy solicitation materials, is also enclosed. We encourage you to read our Annual Report.
We hope you will be able to join us. Whether or not you plan to attend, you can ensure your shares are represented and voted at the meeting by promptly
voting and submitting your proxy by telephone, by Internet or by completing, signing, dating and returning the enclosed proxy card. Voting instructions are included on the enclosed proxy card. If you attend the meeting, you may continue to have your
shares voted as instructed in the proxy, or you may withdraw your proxy at the meeting and vote your shares in person.
Thank you for your continued
interest in Ryman Hospitality Properties, Inc., and we look forward to seeing you at the meeting.
Sincerely,
Colin V. Reed
Chief Executive Officer &
Chairman of the Board of Directors
Ryman Hospitality Properties, Inc.
Notice of Annual Meeting of Stockholders
|
|
|
|
|
Thursday, May 9, 2019
10:00 a.m. local time
|
|
Gaylord Opryland Resort & Convention Center
2800 Opryland Drive
Nashville, Tennessee
37214
|
|
Record Date
The close of business
March 22, 2019
|
Items of Business
|
|
To elect the eight nominees identified in this proxy statement for a
one-year
term
as directors;
|
|
|
To approve, on an advisory basis, our executive compensation;
|
|
|
To ratify the appointment by the Audit Committee of Ernst & Young LLP as our independent registered public
accounting firm for 2019; and
|
|
|
To conduct any other business if properly raised.
|
You will find more information on the matters for voting in the proxy statement on the following pages. If you are a stockholder of record, you may vote by mail,
by toll-free telephone number, by using the Internet or in person at the meeting.
Your vote is important to us. We strongly encourage you to exercise your right to
vote as a stockholder. Please sign, date and return the enclosed proxy card in the envelope provided, or vote by calling the toll-free number or using the Internet even if you plan to attend the meeting. You may revoke your proxy at any time
before the completion of voting for the annual meeting.
You will find instructions on how to vote beginning on page 7. Most stockholders vote by proxy and do not
attend the meeting in person. However, you are entitled to attend the meeting if you were a stockholder of record or a beneficial holder as of the close of business on March 22, 2019, or if you are an authorized representative of any such
stockholder or beneficial holder.
By Order of the Board of Directors of Ryman Hospitality Properties, Inc.,
Scott J. Lynn, Secretary
Nashville, Tennessee
April 2, 2019
|
Important Notice Regarding the Availability of Proxy
Materials for the Annual Meeting of Stockholders To Be Held on May 9, 2019. This proxy statement and our 2018 annual report to stockholders are available on the internet at:
www.rymanhp.com/investorrelations/proxymaterials.htm
On this site, you will be able to access this proxy
statement, our 2018 annual report to stockholders and our annual report on Form
10-K
for the fiscal year ended December 31, 2018, and all amendments or supplements (if any).
|
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Table of Contents
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Proxy Summary
This summary highlights information contained elsewhere in this proxy statement. It does not contain all of the information that you should consider, so please read the
entire proxy statement before voting. Additionally, for more complete information about our 2018 financial performance, please see our Annual Report on Form
10-K
for the fiscal year ended December 31,
2018.
Ryman Hospitality Properties, Inc. Annual Meeting of Stockholders
|
|
|
Time and Date:
|
|
10:00 a.m., local time, May 9, 2019
|
Place:
|
|
Gaylord Opryland Resort & Convention Center
2800 Opryland
Drive
Nashville, Tennessee 37214
|
Record Date:
|
|
March 22, 2019
|
Number of Common Shares Eligible to Vote at the Meeting (and Record Holders) as of the Record Date:
|
|
51,430,561 (768 holders of record)
|
Company Principal Executive Offices:
|
|
One Gaylord Drive
Nashville, Tennessee 37214
|
Date of First Mailing of Proxy Statement and Accompanying Materials to Stockholders:
|
|
April 2, 2019
|
Voting Matters
|
|
|
|
|
|
|
Matter
|
|
Board Recommendation
|
|
Page Reference
|
Proposal 1:
|
|
Election of the Eight Nominees for
Director
Identified in this Proxy
Statement
|
|
FOR
each director nominee
|
|
11
|
Proposal 2:
|
|
Advisory Vote on Executive
Compensation
|
|
FOR
|
|
16
|
Proposal 3:
|
|
Ratification of Independent Registered
Public
Accounting Firm for 2019
|
|
FOR
|
|
17
|
Director Nominees
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Age
|
|
Director
Since
|
|
Primary
Occupation
|
|
Committee
Memberships;
Other Roles
|
|
Other Public
Company Boards
|
|
|
|
|
|
|
Rachna Bhasin
|
|
46
|
|
2016
|
|
Founder/CEO,
EQ
Partners
|
|
Audit
|
|
-
|
Alvin Bowles Jr.
|
|
45
|
|
2017
|
|
Head of Global Publisher Sales and Operations, Facebook, Inc.
|
|
Audit
|
|
-
|
|
|
|
|
|
|
Fazal Merchant
|
|
45
|
|
2017
|
|
COO & CFO,
Tanium
|
|
Audit
|
|
-
|
Patrick Q. Moore
|
|
49
|
|
2015
|
|
EVP, Strategy & Business Development, Carters Inc.
|
|
Audit (Chair);
Nominating & CG
|
|
The Interpublic
Group of
Companies
|
1
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Age
|
|
Director
Since
|
|
Primary
Occupation
|
|
Committee
Memberships;
Other Roles
|
|
Other Public
Company Boards
|
|
|
|
|
|
|
Christine Pantoya
|
|
49
|
|
2019
|
|
Senior Advisor to
Stay Tuned Digital
|
|
-
|
|
-
|
Robert S. Prather, Jr.
|
|
74
|
|
2009
|
|
President & CEO, Heartland Media, LLC
|
|
Audit;
Human Resources
|
|
GAMCO
Investors, Inc.;
Southern
Community
Newspapers, Inc.
|
|
|
|
|
|
|
Colin V. Reed
|
|
71
|
|
2001
|
|
Chief Executive Officer and Chairman of the Board of Directors, Ryman Hospitality Properties, Inc.
|
|
-
|
|
First Horizon
National
Corporation
|
Michael I. Roth
|
|
73
|
|
2004
|
|
Chairman and Chief Executive Officer, The Interpublic Group of Companies
|
|
Human Resources;
Nominating & CG
(Chair); Lead
Independent
Director
|
|
The Interpublic
Group of
Companies;
Pitney Bowes, Inc.
(non-executive
chairman)
|
Company Highlights
Total Stockholder Return
The following
table shows the companys total stockholder return, or TSR
(1)
, as compared to the S&P 500 Index and the FTSE NAREIT Equity REITs Index, over the last one, three and five years.
(1)
|
TSR is equal to stock price appreciation plus dividends, with dividends reinvested quarterly. For more information with
respect to the comparison of our TSR with that of the S&P 500 Index and the FTSE NAREIT Equity REITs Index over the applicable time periods, please see the
Compensation Discussion and Analysis
on page 30.
|
2
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Financial Highlights
We believe that our results in 2018 reflect the continued overall strength of our Hospitality business segment, particularly the group meetings sector in
which we focus, as well as the strategic investments we have made in our hotel properties over the past several years. In addition, the growth in our Entertainment business segment in 2018 continued to reflect our strategic focus on expanding this
business and the continued popularity of the country music genre and Nashville as a tourist destination. Our 2018 financial highlights included:
|
|
|
|
|
|
|
|
|
Increased Revenues
|
|
|
|
Increased Profitability
|
|
|
|
Dividend Growth
|
|
|
|
|
|
$1.13 billion
of Hospitality segment revenue
(up 6.4% from 2017)
$147.2 million
of
Entertainment segment
revenue
(up 17.7% from
2017)
|
|
|
|
$264.7 million
of consolidated net income
(2)
(up 50.3% from
2017)
$388.8 million
of
Consolidated Adjusted EBITDA
(3)
(up 7.7% from 2017)
|
|
|
|
$3.40 per share
annual cash dividend in
2018
(up 6.3% from 2017)
$174.5 million
in total cash dividends
(paid for 2018 fiscal year)
|
We believe that, as a result of our efforts in 2018, we are better able to meet our corporate objectives of increasing
funds available for distribution to our stockholders and creating long-term stockholder value. You can find more information about our 2018 financial and operating performance in the
Compensation Discussion and Analysis
beginning on page 30.
(2)
|
Includes a
one-time
gain of $131.4 million related to the Companys
acquisition of its increased ownership in the Gaylord Rockies joint venture recognized in the fourth quarter of 2018.
|
(3)
|
Consolidated Adjusted EBITDA is a
non-GAAP
financial measure. For a definition of
Consolidated Adjusted EBITDA and a reconciliation of this
non-GAAP
financial measure to consolidated net income (the most comparable GAAP financial measure), and an explanation of why we believe Consolidated
Adjusted EBITDA presents useful information to investors, see Appendix A.
|
Compensation Highlights
Objectives
In order to achieve
our corporate strategic objectives and to attract, retain and motivate a team of qualified, talented and knowledgeable executives who are capable of performing their responsibilities, we design our executive compensation with the intent of providing
competitive compensation programs which reward strong performance and limit compensation when our performance objectives are not achieved. We believe that our compensation programs provide a suitable balance between long- and short-term compensation
and have an appropriate performance-based and at risk component.
3
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Compensation Program Summary
The key elements of the compensation program for our named executive officers, or NEOs, are:
|
|
|
|
|
|
|
Compensation Element
|
|
Key
Characteristics
|
|
2018 Compensation
Decisions
|
|
Percentage of 2018
Target Total
Compensation
(3)
|
Base Salary
|
|
Fixed compensation.
Payable in cash.
Reviewed annually and adjusted when appropriate.
|
|
Our CEO did not receive an increase in base salary, and our other NEOs (on average) received a 3.75% increase in base salary.
|
|
19% of our CEOs target total compensation.
31% of our other NEOs target total compensation (on average).
|
Short-Term Cash Incentive
Compensation
|
|
Variable compensation.
Payable in cash based on performance against annually established performance objectives.
|
|
Annual short-term cash incentives were paid to each NEO at 96.4% of the target payout level due to our financial performance (and, also, in the case of our CEO, the achievement of designated strategic
objectives).
Each NEO also received additional cash incentive compensation in recognition of their contributions to our operating and financial performance in 2018.
|
|
28% of our CEOs target total compensation.
33% of our other NEOs target total compensation (on average).
|
Long-Term Equity
Incentive
Compensation
|
|
Variable compensation.
Performance-based RSUs vesting over a three-year performance period.
Time-based RSUs vesting ratably over four years.
|
|
Annual long-term equity incentive compensation to our NEOs was approximately 50% in the form of performance-based RSUs and 50% in the form of time-based RSUs.
|
|
51% of our CEOs target total compensation.
34% of our other NEOs target total compensation (on average).
|
Executive-Level
Perquisites
|
|
Fixed compensation.
Participation in broad-based plans at same cost as other employees.
Certain executive-level perquisites not paid generally to our other employees.
|
|
Our NEOs received only modest executive-level perquisites.
|
|
2% of our CEOs target total compensation.
2% of our other NEOs target total compensation (on average).
|
(3)
|
Calculated in the manner described in the
Compensation Discussion and Analysis
beginning on page 30.
|
4
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Our Compensation Practices
We also are mindful of the risks to our stockholders that may be inherent in our compensation programs, and we attempt to utilize compensation practices that mitigate
these risks. Some of these compensation practices are:
|
✓
|
|
We Pay for Performance
We tie
pay to performance in a manner that we believe advances our
stockholders interests by paying a significant portion of our NEOs total compensation opportunities in the form of variable compensation.
|
|
✓
|
|
Our Performance-Based RSUs are Tied to TSR
The long-term performance-based awards to our NEOs are in the
form of RSUs which vest based on our achievement of TSR compared to the TSR of a designated peer group and other comparable companies. We believe these awards incentivize our NEOs and align the interests of our NEOs with our stockholders.
|
|
✓
|
|
We Hold an Annual Say on Pay Vote
Consistent with the views of our stockholders, initially expressed in
2011 and reaffirmed in 2017, we continue to conduct an annual
say-on-pay
advisory vote to solicit our stockholders views on our compensation programs.
|
|
✓
|
|
We Solicit Independent Compensation Advice
Our Human Resources Committee retains Aon Hewitt, a leading
independent compensation consultant.
|
|
✓
|
|
We Require Meaningful Levels of Stock Ownership by Our Executives and Directors
Our stock ownership
guidelines require meaningful levels of stock ownership by our executives (including 5x base salary for our CEO) and directors. All NEOs and
non-employee
directors are currently in compliance with the
guideline applicable to them, after taking into account the applicable grace period for our recently appointed directors.
|
|
✓
|
|
We Have Implemented Meaningful Stock Retention Guidelines
Any officer or director who does not meet the
applicable stock ownership guideline (regardless of any compliance grace period) must hold at least 50% of the net shares received in any stock option exercise or RSU vesting.
|
|
O
|
We Dont Provide Excessive Levels of Guaranteed Compensation
Our short-term cash incentive plan
and the terms of the performance-based RSUs issued to our NEOs (which are tied to TSR) do not have minimum payout levels. All of this compensation is performance-based and at risk.
|
|
O
|
We Dont Make Single Trigger Cash Payments Upon a Change of Control
The
employment and severance arrangements with our NEOs require a double trigger (requiring both a change of control and termination of employment) for cash severance payments following a change of control.
|
|
O
|
We Dont Pay Gross Ups For Severance Payments
We do not provide excise or other
tax gross up payments in connection with any severance payment made to an NEO.
|
|
O
|
We Dont Allow Hedging or Significant Pledging of Company Securities by Officers and
Directors
Directors and executive officers are prohibited from engaging in hedging transactions designed to offset decreases in the market value of our securities, and directors and executive officers may not pledge a significant amount
of company securities without prior approval.
|
5
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Corporate Governance Highlights
Our Board of Directors has adopted governance policies that we believe are in the best interests of our stockholders, including:
|
|
|
Annual election of all directors.
|
|
|
|
Non-management
director retirement at age 75.
|
|
|
|
Board refreshment and reduction in average board tenure.
|
|
|
|
Since 2015 the Board of Directors has added 5 new independent directors. Immediately following the 2019 Annual Meeting of
Stockholders, the average tenure of our independent directors will have been reduced from 15 years to 5 years and the average age of our independent directors will have been reduced from 67 to 54 (in each case as compared to 2015).
|
|
|
|
Majority vote standard in uncontested elections.
|
|
|
|
Independent, involved and informed Board of Directors.
|
|
|
|
All directors currently serving as directors, other than our CEO, are independent.
|
|
|
|
All of our incumbent directors who served on the Board during 2018 attended more than 75% of the meetings of the Board and
those committees of which the director was a member, during the period in which he or she served as a director, in the aggregate during 2018 (all incumbent directors had an attendance percentage with respect to such meetings of 85% or higher).
|
|
|
|
Board orientation for new members and ongoing director education.
|
|
|
|
Lead Independent Director.
|
|
|
|
Independent Board committees.
|
|
|
|
Our three active standing Board committees are comprised solely of independent directors.
|
|
|
|
Executive sessions of independent directors are held at each regularly scheduled Board meeting.
|
|
|
|
Annual Board and committee self-evaluations.
|
|
|
|
Board oversight of risk management.
|
|
|
|
No stockholder rights plan.
|
|
|
|
Common stock is the only class of voting securities outstanding.
|
6
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Questions and Answers
About How to Vote Your Shares
Below are instructions on how to vote, as well
as information on your voting rights as a stockholder. Some of the instructions vary depending on how your stock is held. Its important to follow the instructions that apply to your situation.
|
|
|
|
|
Q.
|
|
Who can vote at the Annual
Meeting?
|
A.
|
|
You may vote if you owned shares of our common stock at the close
of business on March 22, 2019 (the record date).
|
|
|
|
Q.
|
|
How do I vote at the Annual
Meeting?
|
A.
|
|
Electronically.
You may vote using the Internet or
by phone.
To use the Internet, go to
www.proxyvote.com
to transmit your voting
instructions up until 11:59 p.m. Eastern time on May 8, 2019 (for shares in our 401(k) plan, the voting deadline is 11:59 p.m. Eastern time on May 7, 2019). 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.
To
vote by phone, dial
1-800-690-6903
up until 11:59 p.m. Eastern time on May 8, 2019 (for shares in our 401(k) plan, the
voting deadline is 11:59 p.m. Eastern time on May 7, 2019). Have your proxy card in hand when you call and then follow the instructions.
In Person or by Mail.
If you hold the shares in your own name, you may also vote in person at the meeting or by signing and dating each proxy card you
receive and returning it in the enclosed prepaid envelope. If you vote by proxy, the proxies identified on the back of the proxy card will vote your shares in accordance with your instructions. If you submit a signed proxy card but do not mark the
boxes showing how you wish to vote, the proxies will vote your shares in accordance with the recommendations of the Board.
|
|
|
|
|
|
|
|
|
|
|
Q.
|
|
|
What is the purpose of the Annual
Meeting?
|
A.
|
|
|
At the Annual Meeting, you and your fellow
stockholders will vote
on the following
matters:
|
|
|
|
Proposal
|
|
|
Matter
|
|
|
|
1
|
|
|
Election of the eight nominees for director identified in
this proxy statement
|
|
|
|
2
|
|
|
Advisory vote on executive compensation
|
|
|
|
3
|
|
|
Ratification of independent registered public accounting
firm for 2019
|
|
|
|
|
|
You and your fellow stockholders will also
be asked to transact any other business that
may properly come before the meeting or
any adjournment or postponement.
|
|
|
|
|
|
|
|
Q.
|
|
|
What if my shares are held in street
name by a broker?
|
A.
|
|
|
If you do not own your shares directly, but
instead are the
beneficial owner of shares
held in street name by a broker, bank or
other nominee, your broker, bank or other
nominee, as the record holder of the shares,
must vote those shares in accordance with
your instructions. If you
do not give
instructions to your broker, bank or other
nominee, your broker, bank or other nominee
can vote your shares with respect to
discretionary items, but not with respect
to
non-discretionary
items. On
non-discretionary
items for which you do not
give instructions, your shares will be counted
as broker
non-votes.
|
|
|
|
|
7
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
|
|
Q.
A.
|
|
Which matters to be presented at
the Annual Meeting
are
discretionary items and may be
voted upon by a broker?
A discretionary item is a
proposal that is
considered routine under the rules of the
New York Stock Exchange, or NYSE.
Shares held in street name may be voted
by your broker, bank or other nominee on
discretionary items in the absence of
voting
instructions given by you.
The matters presented in Proposal 1
(Election of Directors) and
Proposal 2
(Advisory Vote on Executive
Compensation) are not considered routine
under the rules of the NYSE. Therefore,
brokers, banks or other nominees will not
have the ability to vote shares held in
street name with respect to
those
proposals unless the broker, bank or other
nominee has received voting instructions
from the beneficial owner of the shares
held in street name. Broker
non-votes
will
not impact the
outcome of Proposals 1 or
2. It is therefore important that you provide
instructions to your broker, bank or other
nominee if your shares are held in street
name by a broker, banker or other
nominee so that you are able to vote
with
respect to Proposals 1 or 2.
Proposal 3 (Ratification of Independent
Registered
Public Accounting Firm) is
considered routine and therefore may be
voted upon by your broker, bank or other
nominee if you do not give instructions for
the shares held in street name by your
broker, bank or other nominee. If
any
other matter that properly comes before
the meeting is not considered routine
under the rules of the NYSE, broker
non-votes
will not impact the outcome of
this matter.
|
|
|
|
|
|
Q.
|
|
What shares are included on my proxy card?
|
A.
|
|
Your proxy card represents all shares registered in your name with
the transfer agent
|
|
|
|
|
|
|
|
on the record date, including those shares owned pursuant to our 401(k) plan.
|
|
|
|
|
|
Q.
|
|
How are shares in the Companys 401(k) Plan
voted?
|
A.
|
|
Participants in our 401(k) plan are entitled to vote the shares
held under the plan in their name. To do this, you must sign and return the proxy card you received with this proxy statement no later than May 7, 2019. Your proxy card will be considered your confidential voting instructions, and the plan
trustee will direct your vote in the manner you indicate. The voting results for all shares held in the plan will be tabulated by our transfer agent for all participants and reported to the plan trustee on an aggregate basis. The overall vote
tallies will not show how individual participants voted. The trustee will vote the shares at the meeting through the custodian holding the shares. If a plan participants voting instructions are not received by our transfer agent before the
meeting, or if the proxy is revoked by the participant before the meeting, the shares held by that participant will be considered unvoted. All unvoted shares in the plan will be voted at the meeting by the plan trustee in direct proportion to the
voting results of plan shares for which proxies are voted.
|
|
|
|
|
|
Q.
|
|
How many shares must be present to hold the Annual
Meeting?
|
A.
|
|
The holders of a majority of the shares of our common stock
outstanding on the record date, or 25,715,281 shares, in person or by a valid proxy, must be present at the meeting for any business to be conducted, known as a quorum. Proxies received but marked as abstain, as well as
shares that are counted as broker
non-votes,
will be counted as shares that are present for purposes of determining the presence of a quorum.
|
|
|
|
|
|
8
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
|
|
Q.
|
|
What if a quorum is not present at the Annual
Meeting?
|
A.
|
|
If a quorum is not present at the scheduled time of the meeting,
we may adjourn the meeting, either with or without a vote of the stockholders. If we propose to have the stockholders vote whether to adjourn the meeting, the people named in the enclosed proxy will vote all shares of our common stock for which they
have voting authority in favor of the adjournment.
|
|
|
We also may adjourn the meeting if for any reason the Board
determines that adjournment is necessary or appropriate to enable our stockholders to (i) consider fully information which the Board determines has not been sufficiently or timely available to stockholders or (ii) otherwise effectively
exercise their voting rights. An adjournment will have no effect on the business that may be conducted at the meeting.
|
|
|
|
|
|
Q.
|
|
How does the Board recommend I vote on each of the
proposals?
|
A.
|
|
The Board recommends that you vote as follows on each of the
following proposals:
|
|
|
Proposal
|
|
Matter
|
|
|
1
|
|
FOR
election of the eight nominees for director
identified in this proxy statement
|
|
|
2
|
|
FOR
approval of the advisory vote on executive
compensation
|
|
|
3
|
|
FOR
ratification of independent registered public
accounting firm for 2019
|
|
|
|
Q.
|
|
How do I change my vote?
|
A.
|
|
You can revoke your proxy at any time before the meeting by:
|
|
|
|
|
|
|
|
Submitting a later-dated proxy card by mail or transmitting new voting instructions via internet or phone;
|
|
|
Giving written notice to Scott J. Lynn, our corporate secretary, stating that you are revoking your proxy; or
|
|
|
|
|
|
|
|
Attending the meeting and voting your shares in person.
|
|
|
|
|
|
|
|
|
|
|
If you hold your shares in street name
your broker, bank or other nominee will
provide you with instructions on how to
revoke your proxy.
|
|
|
|
|
|
|
|
Q.
|
|
|
Who will count the votes?
|
A.
|
|
|
Representatives of Broadridge will count
the votes and act as the independent
inspector of elections.
|
|
|
|
|
|
|
|
Q.
|
|
|
What if I send in my proxy card and
do not specify how my
shares are to
be voted?
|
A.
|
|
|
If you send in a signed proxy card but do
not give any voting
instructions, your shares
will be voted as follows on each of the
following proposals:
|
|
|
|
Proposal
|
|
|
Matter
|
|
|
|
1
|
|
|
FOR
election of the eight nominees for
director
identified in this proxy
statement
|
|
|
|
2
|
|
|
FOR
approval of the advisory vote on
executive
compensation
|
|
|
|
3
|
|
|
FOR
ratification of independent registered public
accounting
firm for 2019
|
|
|
|
|
Q.
|
|
|
How will the proxies vote on any
other business brought up
at the
Annual Meeting?
|
A.
|
|
|
We are not aware of any other business to
be considered at the
meeting other than the
proposals described in this proxy statement.
If any other business is properly presented
at the meeting, your signed proxy card
authorizes Colin V. Reed, Michael I. Roth
and Scott J. Lynn to use their discretion
to
vote on these other matters.
|
|
|
|
|
9
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
|
|
|
|
Q.
|
|
|
What are my voting options on
Proposal 1 (Election of
Directors)?
|
A.
|
|
|
You may:
|
|
|
|
Vote FOR
all
of the director nominees;
|
|
|
|
Vote FOR
specific
director nominees;
|
|
|
|
Vote AGAINST
all
director nominees;
|
|
|
|
Vote AGAINST
specific
director
nominees;
|
|
|
|
ABSTAIN from voting with respect to
all
of the director nominees; or
|
|
|
|
ABSTAIN from voting with respect to
specific
director nominees.
|
|
|
|
A nominee will be elected as a director if the
number of votes
cast FOR such nominees
election exceeds the number of votes cast
AGAINST such nominees election (with
abstentions and broker
non-votes
not
counted as votes cast
either for or against
such election). Proxies may not be voted for
more than eight directors, and stockholders
may not cumulate votes in the election of
directors.
Under our Corporate Governance
Guidelines and Bylaws, each incumbent
nominee for director
agrees that if he or she
fails to receive the required majority vote in
a director election, the director will tender a
resignation for consideration by the
Nominating and Corporate Governance
Committee and, ultimately, the
Board. If the
resignation is accepted, the nominee will no
longer serve on the Board. If the resignation
is rejected, the nominee will continue to
serve on the Board. Under our Corporate
Governance Guidelines and Bylaws,
any
new nominee will not be elected to the
Board if he or she fails to receive the
required majority vote in an election.
|
|
|
|
|
|
|
|
Q.
|
|
|
What are my voting options on the
other proposals?
|
A.
|
|
|
When voting on either Proposal 2 (Advisory
Vote on Executive Compensation) or
Proposal 3 (Ratification of Independent
Registered Public Accounting Firm), you
may:
Vote FOR the proposal;
Vote AGAINST the proposal; or
ABSTAIN from voting.
|
|
|
|
|
|
|
|
|
|
|
If you abstain from voting on Proposal 2
or Proposal 3, your shares will be
counted as present in person or
represented by proxy and entitled to vote
on such proposal, and thus the abstention
will have
the same effect as a vote
AGAINST such proposal.
|
|
|
|
|
|
|
|
Q.
|
|
|
Is my vote confidential?
|
A.
|
|
|
Yes. All proxy cards and vote tabulations
that identify an
individual stockholder are
kept confidential. Except to meet legal
requirements, your vote will not be
disclosed to us unless a proxy solicitation
is contested, you write comments on the
proxy card, or you authorize disclosure
of
your vote. However, we may confirm
whether a stockholder has voted or take
other actions to encourage voting.
|
|
|
|
|
|
|
|
Q.
|
|
|
How many votes are required to
approve each proposal?
|
A.
|
|
|
The following votes will be required to
approve each proposal:
|
|
|
|
Proposal
|
|
|
Vote Required
|
|
|
|
1
(Election of the
eight nominees
for director
identified in this
proxy statement)
|
|
|
Votes cast FOR must
exceed votes cast AGAINST any nominee
(abstentions and broker
non-votes
will not be counted as votes cast for or against)
|
|
|
|
2
(Advisory vote
on executive
compensation)
|
|
|
Majority
of shares entitled to vote and present in person or by proxy
|
|
|
|
3
(Ratification of
independent
registered
public
accounting
firm)
|
|
|
Majority
of shares entitled to vote and present in person or by proxy
|
|
|
|
|
|
|
|
10
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Proposals
Proposal 1 (Election of the Eight Nominees for Director Identified in this Proxy Statement)
The information below about the business background of each nominee for director has been provided by each nominee. All nominees are currently directors. Two of our
current directors, Michael Bender and Ellen Levine (whose information is also provided below), intend to retire as a director effective as of the Annual Meeting and will not stand
for re-election. In
case any nominee is not available to serve as a director, the person or persons voting the proxies may vote your shares for such other person or persons designated by the Board if you have submitted a proxy card.
The Board may also choose to reduce the number of directors to be elected at the meeting. Each of the nominees shall be elected to serve as a director until the annual
meeting of stockholders in 2020 or until his or her respective successor is otherwise duly elected and qualified, or until his or her earlier resignation or removal. The names of the nominees for director (as well as Mr. Bender and
Ms. Levine), along with their present positions, their principal occupations, current directorships held with other public companies, as well as directorships with other public companies during the past five years, their ages and the year first
elected as a director, are set forth below. Individual qualifications, experiences and skills that contribute to the Boards effectiveness as a whole, as determined by the Nominating and Corporate Governance Committee, are also described below.
Incumbent Directors Standing for
Re-Election
|
|
|
Rachna Bhasin
|
|
|
Founder/CEO, EQ Partners, a private consulting firm, since January 2019. From October 2015 to January 2019, Ms. Bhasin served as Chief Business Officer of Magic Leap, Inc., a digital technology company. Prior to
such time, Ms. Bhasin was Senior Vice-President of Corporate Strategy and Business Development at media company SiriusXM Radio, a position she had held since 2010. From 2007 until 2010 Ms. Bhasin was General Manager, Strategic Partnerships
and Personalization at technology company Dell, Inc., and from 2004 to 2007 she served as Vice President of Business Development at the media company EMI Music, North America.
|
|
Qualifications:
Ms. Bhasins experience in the technology and media industries provide her with a unique perspective
on the challenges and opportunities faced by our Entertainment business segment.
|
|
Current Directorships:
None
|
|
Former Directorships:
None
|
|
Age:
46
|
|
Director since:
2016
|
11
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
Alvin Bowles Jr.
|
|
|
Head of Global Publisher Sales and Operations, Facebook, Inc., a technology company, since October 2015; CEO of media company GrabMedia, March 2011 to September 2015; SVP, Integrated Marketing & Brand Solutions,
of media company BET, April 2007 to December 2010; Vice President Sales, Publisher, AOL Black Voices, of media and technology company AOL, April 2005 to April 2007; Vice President, Global Media Group, of entertainment company Time Warner Inc.,
January 2004 to April 2005.
|
|
Qualifications:
Mr. Bowles brings operating experience in large, complex organizations as a result of his service as a
senior executive of public and private companies, including those with a focus on digital media and technology.
|
|
Current Directorships:
None
|
|
Former Directorships:
None
|
|
Age:
45
Director since:
2016
|
|
|
|
Fazal Merchant
|
|
|
Chief Operating Officer and Chief Financial Officer, Tanium, a privately-held endpoint security and systems management company, since May 2017; consultant to WndrCo, a new media and technology company, December 2016 to
May 2017; Chief Financial Officer, media company DreamWorks Animation SKG, September 2014 to September 2016; Chief Financial Officer, media company DirecTV Latin America, December 2013 to September 2014; SVP, Treasurer & Corporate
Development, media and technology company DirecTV, July 2012 to April 2014; Managing Director, Head of Global Industrials Group, Americas, financial services company Royal Bank of Scotland, January 2011 to July 2012; Managing Director, Global
Industrials, financial services company Barclays Capital, May 2004 to January 2011.
|
|
Qualifications:
Mr. Merchant brings operating and financial experience in large, complex organizations as a result of his
service as a senior executive in public and private companies.
|
|
Current Directorships:
None
|
|
Former Directorships:
None
|
|
Age:
45
|
|
Director since:
2017
|
|
|
|
|
|
Patrick Q. Moore
|
|
|
EVP, Strategy & Business Development, Carters Inc., a branded marketer of apparel and related products, since August 2017; Executive Vice President, Chief Strategy and Corporate Development Officer, YP
Holdings, a privately-held media and advertising company, June 2013 until July 2017; Partner, McKinsey & Company, a management consulting firm, September 2001 to May 2013, where he served a range of consumer, hospitality and media clients
and also led McKinseys North American Consumer Digital Excellence initiative.
|
|
Qualifications:
Mr. Moores previous experience at a digital media company and at a management consulting firm
provide him with a unique perspective on the challenges and opportunities faced by our Entertainment business segment. Mr. Moore also has considerable expertise in the hospitality industry as a result of his service as a management
consultant.
|
|
Current Directorships:
The
Interpublic Group of Companies
|
|
Former Directorships:
None
|
|
Age:
49
Director since:
2015
|
12
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
Christine Pantoya
|
|
|
Senior Advisor to Stay Tuned Digital, an early stage media company, since January 2019. From January 2015 to October 2018, Ms. Pantoya served as SVP & Head of Mobile &
Direct-to-Consumer
for the National Basketball Association, a professional sports league. From April 2012 to January 2015, Ms. Pantoya served as VP of Corporate
Development and Strategy for telecommunications company Verizon Communications. From June 2008 to April 2012, Ms. Pantoya served as Regional Vice President, Sales and Marketing, for telecommunications company Cox Communications. Prior to such
time, Ms. Pantoya served in a variety of roles for telecommunications companies Enhanced Wireless, Clearwire, and Sprint Nextel.
|
|
Qualifications:
Ms. Pantoyas experiences as an executive for the National Basketball Association and for
telecommunications companies provides experience in the media and entertainment industries.
|
|
Current Directorships:
None
|
|
Former Directorships:
None
|
|
Age:
49
|
|
Director since:
2019
|
|
|
|
Robert S. Prather, Jr.
|
|
|
President and Chief Executive Officer, Heartland Media, LLC, a television broadcasting company, since June 2013; President and Chief Operating Officer, Gray Television, Inc., a television broadcasting company, September
2002 to June 2013; Executive Vice President, Gray Television, Inc., 1996 to September 2002; Chief Executive Officer, Bull Run Corporation (now Southern Community Newspapers, Inc.), a media and publishing company, 1992 to December 2005.
|
|
Qualifications:
Mr. Prathers history as a chief executive officer of media companies provides financial expertise,
as well as operating experience in the media and entertainment industries. Mr. Prather also has considerable corporate governance experience through his service on the boards of other public companies.
|
|
Current Directorships:
GAMCO Investors, Inc.; Southern Community Newspapers, Inc.
|
|
Former Directorships:
Diebold Nixdorf, Inc.; Gray Television, Inc.
|
|
Age:
74
|
|
Director since:
2009
|
|
|
|
Colin V. Reed
|
|
|
Chairman of our Board since May 2005; our Chief Executive Officer since April 2001; our President from November 2012 to March 2015 and from April 2001 to November 2008; Member, three-executive Office of the President,
Harrahs Entertainment, Inc., a gaming company, May 1999 to April 2001; Chief Financial Officer, Harrahs Entertainment, Inc., April 1997 to April 2001. Mr. Reed served in a variety of other management positions with Harrahs
Entertainment, Inc. and its predecessor, hotel operator Holiday Corp., from 1977 to April 1997.
|
|
Qualifications:
Mr. Reeds
day-to-day
leadership as Chairman of our Board and CEO, as well as his many years of experience in the hospitality industry, provides him with deep knowledge of our operations and gives him unique insights into our challenges and opportunities.
|
|
Current Directorships:
First Horizon National Corporation
|
|
Former Directorships:
None
|
|
Age:
71
|
|
Director since:
2001
|
13
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
Michael I. Roth
|
|
|
Chairman (since July 2004) and Chief Executive Officer (since January 2005), The Interpublic Group of Companies, a global marketing services
company; Chairman of the Board and Chief Executive Officer, The MONY Group Inc. (and its predecessor entities), a financial services company, 1997 to 2004.
Mr. Roth also serves as our Lead Independent Director, and Mr. Roth regularly devotes additional time and effort to perform the duties associated with this
role, as described on page 18 below. In 2018, Mr. Roth attended 100% of all Board and applicable committee meetings, and since 2013, the year of our REIT conversion, Mr. Roths attendance percentage for board and committee meetings
over this time period in the aggregate has been 100%.
The Board believes that
Mr. Roths service with other publicly traded companies does not negatively impact his service on our Board.
|
|
Qualifications:
As chairman and chief executive officer of one of the worlds largest publicly-traded marketing service
companies, Mr. Roth brings a variety of experience and expertise to the Board, including in the areas of capital markets and corporate governance.
|
|
Current Directorships:
The Interpublic Group of Companies; Pitney Bowes, Inc.
(non-executive
chairman)
|
|
Former Directorships:
None
|
|
Age:
73
|
|
Director since:
2004
|
Incumbent Directors Not Standing for
Re-Election
|
|
|
Michael J. Bender
|
|
|
President & CEO, eyecare retailer Eyemart Express, LLC, since January 2018; Chief Operating Officer Global eCommerce of retailer
Wal-Mart
Stores, Inc., July 2014 to
January 2017; EVP and President, West Business Unit of
Wal-Mart,
February 2011 to July 2014; SVP, Mountain Division of
Wal-Mart,
February 2010 to February 2011;
VP/Regional General Manager at
Wal-Mart,
February 2009 to February 2010; President/General Manager of the Retail and Alternate Care business of healthcare retailer Cardinal Health, 2003 to 2007. Prior to such
time Mr. Bender was Vice President of Store Operations for retailer Victorias Secret Stores, and he spent 14 years with beverage company PepsiCo in a variety of sales, finance and operating roles.
|
|
Qualifications:
Mr. Benders extensive experience in retail sales in large, complex organizations brings financial,
human resources and operational expertise.
|
|
Current Directorships:
None
|
|
Former Directorships:
None
|
|
Age:
57
|
|
Director since:
2004
|
|
|
|
|
|
Ellen Levine
|
|
|
Editorial Consultant, Hearst Magazines, a media and publishing company, since 2017; Editorial Director, Hearst Magazines, 2006-2017;
Editor-in-Chief,
Good
Housekeeping
magazine, 1994 to 2006;
Editor-in-Chief,
Redbook
magazine, 1990 to 1994;
Editor-in-Chief,
Womans Day
magazine, 1982 to 1990; Senior Editor,
Cosmopolitan
, 1976 to 1982. Ms. Levine
was instrumental in founding
O, The Oprah Magazine
in 2000 (and continues to serve as its Editorial Consultant),
Food Network Magazine
in 2009 and
HGTV Magazine
in 2012.
|
|
Qualifications:
Ms. Levines service as an executive at a large media and publishing company provides experience in
the media and entertainment industries.
|
|
Current Directorships:
None
|
|
Former Directorships:
None
|
|
Age:
76
|
|
Director since:
2004
|
14
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Board Meetings in 2018 and Director Attendance
In 2018 the Board met five times. All directors who served on the Board during 2018 attended at least 75% of the total number of meetings of the Board and those
committees of which the director was a member during the period in which he or she served as a director in the aggregate during 2018.
Company Voting
Recommendation
The Board unanimously recommends that our stockholders vote FOR each of our nominees.
Our Corporate Governance Guidelines and Bylaws provide for a majority voting standard in uncontested director elections. A director nominee will be elected to the Board
only if the number of votes cast FOR such nominees election exceeds the number of votes cast AGAINST such nominees election (with abstentions and broker
non-votes
not
counted as votes cast either for or against such election). If an incumbent nominee for director fails to receive the required majority vote in a director election, he or she will tender his or her resignation as a director for consideration by the
Nominating and Corporate Governance Committee and, ultimately, the Board.
In the event any incumbent nominee for director does not receive the requisite majority
vote, our Corporate Governance Guidelines and Bylaws provide that our Nominating and Corporate Governance Committee will evaluate the circumstances of the failed election and will make a recommendation regarding how to act upon the tendered
resignation to the full Board, in light of the best interests of the company and its stockholders. The full Board will then act upon the resignation, taking into account the recommendation of the Nominating and Corporate Governance Committee, and
will publicly disclose its decision regarding the tendered resignation and its rationale within 90 days of the certification of the election results. If the Board accepts the resignation, the nominee will no longer serve on the Board. If the Board
rejects the resignation, the nominee will continue to serve until his or her successor has been duly elected and qualified or until his or her earlier disqualification, death, resignation or removal.
15
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Proposal 2 (Advisory Vote on Executive Compensation)
We are asking stockholders to cast an advisory
(non-binding)
vote on our executive compensation for our named executive
officers, or NEOs. Please read the
Compensation Discussion and Analysis
beginning on page 30 and the related compensation tables and narrative discussion appearing on pages 45 through 52, which provide more information on the compensation
paid to our NEOs for 2018.
Our executive compensation programs are designed to attract, retain and motivate qualified, knowledgeable and talented
executives who are capable of performing their responsibilities.
We believe that the leadership and performance of our executives contributed significantly to our
strong operating and financial results in 2018, which included:
|
|
Company Revenues Were at Record Levels.
In 2018 our total revenues were $1.28 billion, the highest level in our history and a 7.6% increase from 2017. Our Hospitality segment revenue increased 6.4%
from 2017 to $1.13 billion, and our Entertainment segment revenue increased 17.7% from 2017 to $147.2 million.
|
|
|
Our Net Income, AFFO and Adjusted EBITDA Increased in 2018.
In
2018:
|
|
|
|
Our net income
(1)
increased 50.3% from 2017 to $264.7 million;
|
|
|
|
Our AFFO
(2)
increased 5.7% from 2017 to $301.8 million; and
|
|
|
|
Our Adjusted EBITDA
(2)
increased 7.7% from 2017 to $388.8 million.
|
|
|
We Continued to Increase Dividends to Stockholders.
In 2018 we increased our annual cash dividend by 6.3% (as compared to 2017) to $3.40 per share, paying approximately $174.5 million in dividends to
our stockholders in 2018 (including the dividends paid in January 2019 to holders of record as of December 28, 2018).
|
Company Voting Recommendation
For the reasons discussed above and in the
Compensation Discussion and Analysis
beginning on page 30, we are asking our stockholders to vote FOR the following resolution at the Annual Meeting:
RESOLVED
, that the companys stockholders approve, on an advisory basis, the compensation paid to the companys named executive officers as
disclosed pursuant to Item 402 of Regulation
S-K,
including the
Compensation Discussion and Analysis
, compensation tables and narrative discussion, in this proxy statement.
Approval of this proposal requires the affirmative vote of a majority of the shares represented in person or by proxy and entitled to vote on this matter. If you
abstain from voting on this matter, your abstention will have the same effect as a vote against the proposal. Broker
non-votes
will not impact the outcome of this matter. While this vote is advisory and
therefore not binding on us, our Board and our Human Resources Committee value the opinions of our stockholders and will take into consideration the outcome of this vote when making future decisions regarding our executive compensation programs.
The Board unanimously recommends that the stockholders vote FOR the approval of the advisory resolution relating to the compensation of our NEOs as disclosed in
this proxy statement.
(1)
|
Includes a
one-time
gain of $131.4 million related to the Companys
acquisition of its increased ownership in the Gaylord Rockies joint venture recognized in the fourth quarter of 2018.
|
(2)
|
AFFO and Adjusted EBITDA are
non-GAAP
financial measures. For a definition of the
non-GAAP
financial measures used herein, a reconciliation of each
non-GAAP
financial measure to the most directly comparable GAAP financial measure, and an explanation of why
we believe these measures present useful information to investors, see Appendix A.
|
16
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Proposal 3 (Ratification of Independent Registered Public Accounting
Firm for 2019)
Proposal 3 asks that our stockholders vote to ratify the Audit Committees appointment of Ernst & Young LLP as the independent
registered public accounting firm to audit our financial statements and internal control over financial reporting for the 2019 fiscal year. You can find more information about our relationship with Ernst & Young LLP on page 65 of this proxy
statement.
Proposal 3 asks that our stockholders vote to ratify the Audit Committees appointment of Ernst & Young LLP
as the independent registered public accounting firm to audit our financial statements for the 2019 fiscal year. In the event the stockholders fail to ratify the appointment, the Audit Committee will reconsider this appointment. The Audit Committee,
in its discretion, may direct the appointment of a different independent registered public accounting firm at any
time during the year if the Audit Committee determines that such a change would be in our and our stockholders best interests.
Ernst & Young LLP has served as our independent registered public accounting firm since 2002. Representatives of Ernst & Young LLP will be present at
the meeting. They will be available to respond to your questions and may make a statement if they desire.
Company Voting Recommendation
Approval of this proposal requires the
affirmative vote of a majority of the shares represented in person or by proxy and entitled to vote on the matter. If you abstain from voting on the ratification of the appointment of Ernst & Young LLP as our independent registered public
accounting firm, your abstention will have the same effect as a vote against the proposal.
The Board and the Audit Committee unanimously recommend that the
stockholders vote FOR the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for 2019.
17
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Company Information
Corporate Governance
Our business is managed under the direction of our Board of Directors. The Board delegates the conduct of the business to our senior management team. The Board held five
meetings during 2018. All directors who served on the Board during 2018 attended at least 75% of the total number of meetings of the Board and those committees of which the director was a member during the period in which he or she served as a
director in the aggregate during 2018.
We have adopted Corporate Governance Guidelines governing the conduct of our Board. The charters of our Audit Committee,
Human Resources Committee and Nominating and Corporate Governance Committee, as well as our Corporate Governance Guidelines, are all posted on our web site at
www.rymanhp.com
(under Corporate Governance on the Investor Relations
page).
We have also adopted a Code of Business Conduct and Ethics which is applicable to all employees, officers and directors, including the principal executive
officer, the principal financial officer and the principal accounting officer. The Code of Business Conduct and Ethics is available on our web site at
www.rymanhp.com
(under Corporate Governance on the Investor Relations
page). We intend to post amendments to or waivers from our Code of Business Conduct and Ethics (to the extent applicable to our directors, principal executive officer, principal financial officer or principal accounting officer) at this location on
our website.
We will provide a copy of our Corporate Governance Guidelines, our committee charters or our Code of Business Conduct and Ethics (and any amendments or
waivers) to any stockholder or other person upon receipt of a written request addressed to:
Ryman Hospitality Properties, Inc.
Attn: Corporate Secretary
One Gaylord Drive
Nashville, Tennessee 37214
Board Leadership Structure
The Board believes that Mr. Reeds service as both Chairman of the Board and CEO is in the best
interests of the company and its stockholders. Mr. Reed possesses a detailed knowledge of our industry as well as an understanding of both the opportunities and challenges we face. The Board
thus believes that Mr. Reed is best positioned to develop agendas that ensure that the Boards time and attention are focused on the most important matters facing the company. The Board also believes that Mr. Reeds combined role
ensures clear accountability, enhances our ability to articulate our strategy and message to our employees, stockholders and business partners and enables decisive overall leadership.
The Board has determined that it is also important to have an independent Lead Director who will play an active role and oversee many of the functions that an
independent chair would otherwise perform. The Board has adopted a description of the duties of the Lead Director, which is posted on our website at
www.rymanhp.com
(under Corporate Governance on the Investor Relations page).
Pursuant to this description, the Chairman of the Nominating and Corporate Governance Committee serves as the companys Lead Director, and that individual is currently Michael Roth.
Some of the primary functions of our Lead Director are:
|
|
To call, convene and chair meetings of the
non-management
directors or independent directors and other meetings as may be necessary from time to time and, as appropriate, provide
prompt feedback to the CEO;
|
|
|
To coordinate and develop the agenda for and chair executive sessions of the independent directors;
|
|
|
To coordinate feedback to the CEO on behalf of independent directors regarding business issues and management;
|
|
|
To be available, as appropriate, for direct communication with major stockholders who request such a communication; and
|
|
|
To perform such other duties as may be necessary for the Board to fulfill its responsibilities or as may be requested by the Board as a whole, by the
non-management
directors, or
by the Chairman of the Board.
|
18
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Each of the directors other than Mr. Reed is independent, and the Board believes that the independent directors
coupled with the Lead Director provide effective oversight of management. Our
non-management
directors meet regularly in scheduled executive sessions, and the Lead Director presides at these executive
sessions. Following an executive session of our
non-management
directors, the Lead Director acts as a liaison between the
non-management
directors and the Chairman
regarding any specific feedback or issues, provides the Chairman with input regarding agenda items for Board and committee meetings, and coordinates with the Chairman regarding information to be provided to our
non-management
directors in performing their duties. The Board believes that this approach appropriately and effectively complements the combined CEO/Chairman structure.
Although we believe that the combination of the Chairman and CEO roles is appropriate in the current circumstances, the Board retains the authority to modify our current
combined CEO/Chairman structure to best address our circumstances, if and when appropriate.
Board Attendance at Annual Meeting
We strongly encourage each member of the Board to attend the Annual Meeting of Stockholders. All of our directors then serving as directors, except Mr. Bowles,
attended the 2018 Annual Meeting of Stockholders.
Independence of Directors
Pursuant to our Corporate Governance Guidelines, the Board undertook its annual review of director independence in February 2019. Our Board determines the independence of
its members through a broad consideration of all relevant facts and circumstances, including an assessment of the materiality of any relationship between the company and a director. In making this assessment, the Board looks not only at
relationships from the directors standpoint, but also from the standpoint of persons or organizations with which the director has an affiliation. In making its determination, the Board adheres to the requirements of, and applies both the
objective and subjective standards set forth by, the NYSE (as set forth in Section 303A.02 of the NYSE listed company manual), as well as the requirements and standards of the SEC and other applicable laws and regulations.
During this review, the Board considered whether there are or have been any transactions and relationships between each
director, or any member of his or her immediate family, and the company and its subsidiaries and affiliates. The Board also examined whether there are or have been any transactions and relationships between the incumbent directors, or their
affiliates, and members of the companys senior management or their affiliates. The purpose of this review was to determine whether any of these relationships or transactions were inconsistent with a determination that the director is
independent. The Board concluded that no such transactions existed during the relevant period. As a result of this review, the Board affirmatively determined that, with the exception of Colin Reed, all of our incumbent directors are independent of
the company and its management.
Committees of the Board
The Board maintains three standing committees, an Audit Committee, Human Resources Committee and Nominating and Corporate Governance Committee, to facilitate and assist
the Board in the execution of its responsibilities.
Audit Committee
The
current members of the Audit Committee are Patrick Moore (Chair), Rachna Bhasin, Alvin Bowles, Fazal Merchant (Financial Expert) and Robert Prather (Financial Expert).
The committee is a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The
committee is responsible for, among other things:
|
|
overseeing the integrity of our financial information, the performance of our internal audit function and system of internal controls and compliance with legal and regulatory requirements relating to preparation of
financial information;
|
|
|
appointing, compensating, retaining and overseeing our independent registered public accounting firm;
|
|
|
evaluating the qualifications, independence and performance of our independent registered public accounting firm;
|
19
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
meeting with our independent registered public accounting firm and with our director of internal audit concerning, among other things, the scope of audits and reports;
|
|
|
reviewing the work programs of our independent registered public accounting firm and the results of its audits; and
|
|
|
assessing our risk assessment and risk management policies.
|
The Board has determined that all the members of the
committee are financially literate pursuant to the NYSE rules. The Board also has determined that Mr. Merchant and Mr. Prather are audit committee financial experts within the meaning stipulated by the SEC.
In 2018, the committee met eight times.
Human Resources Committee
The current members of the Human Resources Committee are Michael Bender (Chair), Ellen Levine, Robert Prather and Michael Roth.
The committee is responsible for, among other items:
|
|
reviewing and approving all compensation policies and programs that benefit employees, including employment and severance agreements, incentive programs, benefits and retirement programs;
|
|
|
reviewing and approving annually the corporate goals and objectives relative to the CEOs compensation, evaluating the CEOs performance in light of those objectives, and determining and approving the
CEOs compensation level based on this evaluation;
|
|
|
reviewing, approving and administering, and granting awards under, cash- and equity-based incentive plans; and
|
|
|
reviewing and approving compensation for executive officers and directors (subject to, in the case of director compensation, approval by the full Board).
|
The committee has also delegated to the CEO the authority to make limited equity grants to new members of our management team to allow such grants to be made in a timely
manner, as the committee generally only meets on a quarterly
basis. Equity grants under this delegation of authority may only be made as initial equity grants to newly hired executives (other than officers subject to Section 16 of the Securities
Exchange Act of 1934) and on the same terms and conditions as were applied by the committee in its most recent prior equity grants. In addition, equity grants under this delegation of authority to any one executive are limited to 6,250 RSUs and
must be ratified by the committee.
The committee has engaged Aon Hewitt as its compensation consultant since 2013. The committee has determined that no conflict of
interest exists between Aon Hewitt and the company (including the companys Board members and company management) pursuant to Item 407(e)(3)(iv) of SEC Regulation
S-K. In
2018 neither Aon Hewitt nor
any affiliate of Aon Hewitt provided any services to the company or its affiliates apart from its engagement by the committee described above.
Aon Hewitt assisted
the committee in determining if its strategies and plans were advisable based on our current financial position and strategic goals, as well as developments in corporate governance and compensation design. At the committees request, Aon Hewitt
also performed several analyses, including updates to the executive salary structure and modeling of executive compensation levels at different levels of company performance, to assist the committee in its review.
For additional information regarding the committees processes and procedures for considering and determining executive compensation, including the role of
executive officers in determining the amount or form of executive compensation, see
Compensation Discussion and Analysis
below.
In 2018, the committee met
four times.
Compensation Committee Interlocks and Insider Participation
The Human Resources Committee (which functions as our compensation committee) is comprised entirely of independent directors. In addition, there are no relationships
among our executive officers, members of the committee or entities whose executives serve on the Board or the committee that require disclosure under applicable regulations of the SEC.
20
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Nominating and Corporate Governance Committee
The current members of the Nominating and Corporate Governance Committee are Michael Roth (Chair), Michael Bender, Ellen Levine and Patrick Moore.
The committee is responsible for, among other things:
|
|
developing and recommending criteria for the selection of new directors and recommending to the Board nominees for election as directors and appointment to committees;
|
|
|
developing and recommending changes and modifications to our corporate governance guidelines and our code of conduct to the Board;
|
|
|
monitoring and enforcing compliance with our corporate governance guidelines, certain provisions of our code of conduct and other policies; and
|
|
|
advising the Board on corporate governance matters, including as appropriate obtaining updates on corporate governance developments from professional advisors.
|
In 2018, the committee met four times.
A formal Board evaluation covering Board
operations and performance, with a written evaluation from each Board member, is conducted annually by the committee to enhance Board effectiveness. Recommended changes are considered by the full Board. In addition, each Board committee conducts an
annual self-evaluation.
The committee annually reviews with the Board the companys Statement of Expectations of Directors. This review includes an
assessment of independence, diversity, age, skills, experience and industry backgrounds in the context of the needs of the Board and the company, as well as the ability of current and prospective directors to devote sufficient time to performing
their duties in an effective manner. Directors are expected to actively participate in Board discussions and exemplify the highest standards of personal and professional integrity. In particular, the committee seeks directors with established strong
professional reputations and expertise in areas relevant to the strategy and operations of our businesses.
While our Corporate Governance Guidelines do not prescribe specific diversity criteria for selection of directors, as a
matter of practice, the committee considers diversity in the context of the Board as a whole and takes into account diversity, including the personal characteristics (such as gender, ethnicity or age) and experience (such as industry, professional
or public service) of current and prospective directors, when selecting new directors to facilitate Board deliberations that reflect a broad range of viewpoints. The committees charter gives it responsibility to develop and recommend criteria
for the selection of new directors to the Board, including but not limited to diversity, age, skills, experience, time availability and such other criteria as the committee shall determine to be relevant at the time.
The committee also considers the impact of any changes in the employment of existing directors. In this regard, if a director changes employment, the director is
required to submit a letter of resignation to the committee. The committee then reviews the directors change of employment and determines whether the directors continued service on the Board would be advisable as a result of such change.
After completing this evaluation, the committee makes a recommendation to the full Board as to whether to accept the directors resignation, and the Board makes a final determination of whether to accept the directors resignation.
The committee considers candidates for Board membership recommended by its members and other Board members, as well as by management and stockholders. From time the time
the committee may also engage a third party search firm to identify prospective Board members. The committee will only consider stockholder nominees for Board membership submitted in accordance with the procedures set forth in
Submitting
Stockholder Proposals and Nominations for 2020 Annual Meeting
beginning on page 67.
Once the committee has identified a prospective nominee, the committee makes
an initial determination as to whether to conduct a full evaluation of the candidate. This initial determination is based on whatever information is provided to the committee with the recommendation of the prospective candidate, as well as the
committees own knowledge of the prospective candidate, which may be supplemented by inquiries to the person making the recommendation or others. The
21
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
preliminary determination is based primarily on the need for additional Board members to fill vacancies or expand the size of the Board and the likelihood that the prospective nominee can satisfy
the evaluation factors described below. If the committee determines, in consultation with the Chairman of the Board and other Board members as appropriate, that additional consideration is warranted, it may request additional information about the
prospective nominees background and experience. The committee then evaluates the prospective nominee against the following standards and qualifications:
|
|
the ability of the prospective nominee to represent the interests of our stockholders;
|
|
|
the prospective nominees standards of integrity, commitment and independence of thought and judgment;
|
|
|
the prospective nominees ability to dedicate sufficient time, energy and attention to the diligent performance of his or her duties, including the prospective nominees service on other boards; and
|
|
|
the extent to which the prospective nominee contributes to the range of knowledge, diversity, skill and experience appropriate for the Board.
|
The committee also considers such other relevant factors as it deems appropriate, including the current composition of the Board and the evaluations of other prospective
nominees. In connection with this evaluation, the committee determines whether to interview the prospective nominee, and if warranted, one or more members of the committee, and others as appropriate, will interview the prospective nominee in person
or by telephone. After completing this evaluation and interview, the committee makes a recommendation to the full Board as to whether this prospective nominee and any other prospective nominees should be nominated by the Board, and the Board
determines the nominees after considering the recommendation and report of the committee.
Ms. Pantoya was initially identified to the committee by an existing
director. The committee then interviewed Ms. Pantoya and other candidates, reviewed the qualifications, expertise and experience of such candidates, and ultimately recommended to the full Board that Ms. Pantoya become a nominee for
director.
New directors participate in an orientation program that includes discussions with senior management,
their review of background materials on our strategic plan, organization and financial statements and visits to our facilities. We encourage each director to participate in continuing educational
programs that are important to maintaining a directors level of expertise to perform his or her responsibilities as a Board member.
Majority Voting Standard for Director Elections
Our Corporate Governance Guidelines and Bylaws provide for a majority voting standard in uncontested director
elections. Under these provisions, any director nominee in an uncontested election will be elected to the Board if the votes cast for such nominees election exceed the votes cast against such nominees election at any meeting for the
election of directors at which a quorum is present (with abstentions and broker
non-votes
not counted as votes cast either for or against such election). In addition, under our Corporate Governance
Guidelines, each director agrees, by serving as a director or by accepting nomination for election as a director, that if while serving as a director he or she fails to receive the required majority vote in a director election, he or she will tender
his or her resignation as a director for consideration by the Nominating and Corporate Governance Committee and, ultimately, the Board, as described below.
In the
event any incumbent director nominee does not receive the requisite majority vote, our Corporate Governance Guidelines provide that our Nominating and Corporate Governance Committee will evaluate the circumstances of the failed election and will
make a recommendation regarding the directors resignation to the full Board and will evaluate the resignation in light of the best interests of the company and its stockholders in determining whether to recommend accepting or rejecting the
tendered resignation, or whether other action should be taken. Thereafter, the Board will act upon the resignation, taking into account the recommendation of the Nominating and Corporate Governance Committee, and will publicly disclose (by a press
release, a filing with the SEC or other broadly disseminated means of communication) its decision regarding the tendered resignation and the rationale behind the decision within 90 days of the certification of the election results. In such event, if
the Board accepts the resignation, the nominee will no longer serve on the Board, and if the Board rejects the
22
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
resignation, the nominee will continue to serve until his or her successor has been duly elected and qualified or until his or her earlier disqualification, death, resignation or removal.
Director Retirement Policy
Our Corporate
Governance Guidelines include a
non-management
director retirement policy, which requires any
non-management
director who reaches the age of 75 to either (at the option
of the director): (1) retire effective as of the date of the annual meeting of stockholders next following the directors 75
th
birthday; or (2) not stand for
re-election
at the next annual meeting of stockholders. In accordance with this policy, Ms. Levine is not standing for
re-election
at the Annual Meeting.
CEO Pay Ratio
The Dodd-Frank Act requires that we
disclose the ratio of CEO pay to the median employee pay of all our employees, other than the CEO, in 2018, calculated in accordance with Item 402(u) of SEC Regulation
S-K.
In making this calculation, we first
identified the companys median employee by examining the 2018 total cash compensation for all individuals, excluding our CEO, who were employed by us on December 31, 2018, the last day of our payroll year. We included all
employees, whether employed on a full-time, part-time or seasonal basis (for purposes of this calculation, a total of 1,113 employees). We did not make any assumptions, adjustments or estimates with respect to total cash compensation, except that we
annualized the compensation for all full- and part-time employees who were not employed by us for all of 2018. We selected total cash compensation for all employees as our compensation measure because we do not widely distribute annual equity
awards to employees. We then identified the companys median employee based on total cash compensation, and we determined that such median employee served as a full-time employee within our Entertainment business segment and averaged an
approximately
34-hour
work week during 2018.
In addition to the pay ratio disclosure required by the Dodd-Frank Act, we believe that it is also important to take into
consideration:
|
|
the nature of our overall employee base, which contains a small number of full-time employees dedicated to our hospitality REIT business segment and a large number of full- and part-time employees working in our
Entertainment business segment (with many of our part-time employees only working a few hours each week at various times to service the numerous concerts and other events at our entertainment venues); and
|
|
|
the fact that, unlike many chief executives, our CEO oversees two lines of business, a hospitality REIT and an entertainment operating company.
|
As a result, we believe that it is appropriate to also provide two additional supplemental calculations that reflect the pay ratio of the total compensation of our CEO
to (1) the total compensation of the median of all full-time employees, and (2) the total compensation of the median of the full-time employees of our REIT entity (comprising our Hospitality business segment).
Accordingly, we determined that the following were reasonable estimates of the pay ratio required to be disclosed by Item 402(a) of SEC Regulation
S-K,
as well as the supplemental pay ratios described above:
|
|
|
|
|
Dodd-Frank Act Pay Ratio
Information
(1)
|
|
|
|
|
CEO to Median Employee Pay Ratio (Calculated in Accordance with Item 402(u) of SEC Regulation
S-K)
|
|
|
288:1
|
|
Supplemental Pay Ratio
Information
(2)
|
|
|
|
|
CEO to Median Employee Pay Ratio
(Full-Time Employees
Only)
(3)
|
|
|
115:1
|
|
CEO to Median Employee Pay Ratio
(Full-Time REIT Employees Only)
(4)
|
|
|
52:1
|
|
(1)
|
As required by SEC rules, for purposes of calculating this pay ratio, pay for the median employee and for our CEO were
determined using the methodology set forth in our
2018 Summary Compensation
Table
on page 45 below. Using this methodology, we determined that a reasonable estimate of the 2018 total compensation of our median employee was $17,308 and
determined that the total compensation of our CEO was $4,992,700.
|
(2)
|
The supplemental ratios listed above were calculated based on the total compensation paid to our CEO and to the median
employees identified above using the
|
23
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
methodology set forth in our
2018 Summary Compensation
Table
on page 45 below.
|
(3)
|
For purposes of calculating this supplemental pay ratio, only full-time employees of the company as of December 31,
2018 (a total of 513 employees) were included in the determination of the median company employee.
|
(4)
|
For purposes of calculating this supplemental pay ratio, only full-time employees employed by our REIT entity (comprising
our Hospitality business segment) as of December 31, 2018 (a total of 88 employees) were included in the determination of the median company employee.
|
In designing our CEOs compensation in 2018, our Human Resources Committee was mindful of the need to provide a market-competitive compensation package with a
significant element of equity-based and performance-based compensation (not generally available to our employee base), which the committee believes is in the best interests of the company and its stockholders. Additionally, the committee monitors
managements determination of compensation at all levels of the company (including through pay surveys and other market assessments), based on each employees position, skill level and experience, and the committee believes that our
compensation practices as a whole are fair and competitive with others in the marketplace.
Compensation Clawback
In 2015 the SEC issued proposed rules regarding the adoption of clawback policies by publicly listed companies in accordance with the requirements of
Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). When final SEC rules implementing these requirements have become effective, publicly listed companies will be required to adopt a
clawback policy providing for the recovery of certain incentive-based compensation from the executive officers of the company in the event the company is required to restate its financials as a result of material noncompliance of the
company with any financial reporting requirements under the securities laws.
In order to ensure full compliance with these SEC rules, we intend to adopt our own
formal clawback policy applicable to our executive officers complying with such rules once these final rules have been
adopted by the SEC. In addition, Section 304 of the Sarbanes-Oxley Act of 2002 requires the recovery of incentive awards in certain circumstances. If we are required to restate our
financials due to material noncompliance with any financial reporting requirements as a result of misconduct, our CEO and CFO will be required under Section 304 of the Sarbanes-Oxley Act to reimburse us for (1) any bonus or other
incentive- or equity-based compensation received during the 12 months following the first public issuance of the
non-complying
document, and (2) any profits realized from the sale of our securities during
such 12 month period. Our omnibus incentive plan also provides that any award made to a participant under the plan will be subject to mandatory repayment by the participant to us to the extent required by (a) any award agreement, (b) any
clawback or recoupment policy adopted by the company to comply with the requirements of any applicable laws, rules or regulations, including final SEC rules adopted pursuant to Section 954 of the Dodd-Frank Act, or otherwise, or
(c) any applicable laws which impose mandatory recoupment, under circumstances set forth in such applicable laws, including the Sarbanes-Oxley Act of 2002.
Boards Role in Risk Oversight
The Board as a
whole has responsibility for oversight of the companys enterprise risk management function, with reviews of certain areas being conducted by the relevant Board committees that report on their deliberations to the Board. The oversight
responsibility of the Board and its committees is made possible by a management report process that is designed to provide both visibility and transparency to the Board about the identification, assessment and management of critical risks and
managements risk mitigation strategies. In this regard, each committee meets in executive session with key management personnel and representatives of outside advisors (for example, our director of internal audit meets in executive session
with the Audit Committee). The areas of focus of the Board and its committees include competitive, economic, operational, financial (accounting, credit, liquidity and tax), legal, compliance, information technology security programs (including
cybersecurity), political and reputational risks.
24
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
The Board and its committees oversee risks associated with their respective principal areas of focus, as outlined below:
|
|
|
Board/
Committee
|
|
Primary Areas
of Risk Oversight
|
Board of Directors:
|
|
Enterprise risk management, including strategic, financial and execution risks associated with the annual operating plan and the long-term plan; major litigation and regulatory exposures; acquisitions and divestitures; senior
management succession planning; information technology security programs (including cybersecurity) and other current matters that may be material risks to the company.
|
Audit Committee:
|
|
Risks and exposures associated with financial matters, including financial reporting, tax, accounting, disclosure, internal control over financial reporting, financial policies, investment guidelines and credit and
liquidity.
|
Nominating and CG Committee:
|
|
Risks and exposures relating to corporate governance and director succession planning.
|
Human Resources Committee:
|
|
Risks and exposures associated with leadership assessment, management succession planning and compensation programs.
|
We believe that the Boards role in risk oversight is facilitated by the leadership structure of the Board. In this regard, we
believe that, by combining the positions of Chairman of the Board and CEO, the Board gains a valuable perspective that combines the operational experience of a member of management with the oversight focus of a member of the Board. We also believe
that the division of risk management-related roles among the companys full Board, Audit Committee, Nominating and Corporate Governance Committee and Human Resource Committee as noted above fosters an atmosphere of significant involvement in
the oversight of risk at the Board level and complements our risk management policies.
The Board, in executive sessions of
non-management
directors (which are presided over by the companys independent Lead Director), also considers and
discusses risk-related matters. This provides a forum for risk-related matters to be discussed without management or the Chairman of the Board and CEO present. The companys independent Lead
Director acts as a liaison between the companys Chairman of the Board and CEO and the companys independent directors to the extent that any risk-related matters discussed at these executive sessions require additional feedback or action.
In setting compensation, the Human Resources Committee also considers the risks to our stockholders that may be inherent in our compensation programs. We believe
that our compensation programs are appropriately structured and provide for a suitable balance between long-term and short-term compensation and have an appropriate performance-based and at risk component. We also believe that our
compensation policies and practices do not create risks that are reasonably likely to have a material adverse effect on the company.
Corporate Responsibility
We are committed to
corporate responsibility as an integral part of our operating strategy. The Nominating and Corporate Governance Committee of the Board oversees our corporate responsibility efforts. Beginning in 2019, management of the company will provide an annual
update on our corporate responsibility efforts to the Nominating and Corporate Governance Committee.
The primary areas of focus of our corporate responsibility
program (the key aspects of which are described below) consist of:
|
|
the
employees
working directly for us in our entertainment venues, as well as the Marriott International, Inc. employees working in our hotel properties;
|
|
|
the
stockholders
of our company;
|
|
|
the
communities
in which we operate.
|
Our Employees and the Marriott Employees in Our
Hotels
.
We believe that our employees are a key component of our success. We seek to attract talented employees, and we also seek to offer our employees highly competitive pay and benefit packages to retain them for the long-term. We
25
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
continually evaluate our compensation programs to ensure that our compensation and benefits practices are market-competitive. We also reinvest in training programs on an annual basis, which
include customer service training for our front-line employees and training in areas such as workplace violence, business ethics and discrimination and sexual harassment. In addition, we encourage diversity and inclusiveness in our work force, and
we are an equal opportunity employer.
We also review on an ongoing basis the compensation, benefits and other employment practices of Marriott, the manager of our
hotels. We believe that Marriott is an employer of choice within the hospitality operating company segment, and in 2018 Marriott was named as one of the Fortune 100 Best Places to Work.
Our Stockholders.
Our Board is committed to a strategy of enhancing long-term stockholder value, and our Board believes that a robust corporate governance
program and shareholder engagement are critical components of that strategy. As more fully outlined on page 6 we have adopted a series of corporate governance practices that we believe are aligned with the interests of our stockholders, including
the annual election of directors, majority voting in director elections, one class of outstanding stock with no stockholder rights plan and a mandatory director retirement policy. As also outlined on page 6, we have engaged in a board refreshment
process that has added 5 new independent directors since 2015.
We also remain committed to a process of continuous and frequent engagement with our stockholders. We
continually make ourselves available to meet with our stockholders, including through attendance at numerous investment conferences throughout the year. In September 2018 we held an investor and analyst day, and we were able to meet representatives
of many of our large stockholders in person and solicit their feedback.
Our Environment.
We continually assess the impact of our business operations
on the environment and review ways in which we can reduce our environmental impact. As an example, our asset managers work with Marriott, the manager of our hotels, to improve each hotels business operations
and to reduce the impact of our hotels on the environment, including by means of energy efficiency projects such as LED lighting, upgrades to
in-room
energy management systems and other building infrastructure upgrades.
Our Communities.
We are also committed to improving the communities in which we
do business, and we have a lengthy history of corporate philanthropy in Nashville, Tennessee (the location of our corporate headquarters) and in the other communities in which we operate. Our executives and employees participate in many charitable
and civic endeavors in their communities. We sponsor and administer the Ryman Hospitality Properties Foundation, which annually provides support to many charitable organizations, with a specific focus on education and the arts. In addition, we
sponsor and administer the Opry Trust Fund, which partners with other organizations to provide, on a confidential basis, direct financial assistance to music industry participants facing medical or other personal emergencies.
Restrictions on Hedging and Pledging of Company Stock
Our insider trading policy restricts our executive officers and directors from engaging in any transactions designed to hedge or otherwise offset any decrease in the fair
market value of our equity securities. Our insider trading policy also prohibits executive officers and directors from pledging or otherwise encumbering a significant amount of equity securities (generally defined as the lesser of 0.50% of our
outstanding equity securities or 10% of the equity securities owned by the individual) without prior approval of the Human Resources Committee.
Proxy Solicitation
We will bear the cost of soliciting proxies for the meeting. We have retained Morrow Sodali LLC to assist in the solicitation and will pay
them approximately $6,000. Our officers may also solicit proxies by mail, telephone,
e-mail
or facsimile transmission, but we will not reimburse them for their efforts. Upon request, we will reimburse brokers,
dealers, banks and trustees, or their nominees, for reasonable expenses incurred by them in forwarding proxy materials.
26
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Communications with the Board of Directors
Stockholders, employees and others interested in communicating with the Board (including
non-management
directors) may write to:
Ryman Hospitality Properties, Inc.
Attn: Corporate
Secretary
One Gaylord Drive
Nashville,
Tennessee 37214
The Corporate Secretary reviews all such correspondence and regularly forwards to the Board a summary of all such correspondence and copies of all
correspondence that, in the opinion of our Corporate Secretary, deals with the functions of the Board or committees thereof or that he otherwise determines requires their attention. Directors may
review a log of all correspondence addressed to members of the Board and request copies of any such correspondence. Concerns relating to accounting, internal controls or auditing matters are immediately brought to the attention of our internal audit
department and handled in accordance with procedures established by the Audit Committee with respect to such matters. In addition, stockholders, employees and other interested parties may communicate directly with our independent Lead Director,
individual independent directors or the independent directors as a group by email at
boardofdirectors@rymanhp.com.
27
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Stock Ownership
The table below lists the beneficial ownership of our common stock as of March 22, 2019 (unless otherwise noted) by all directors, each of our NEOs, and the
directors and executive officers as a group. The table also lists all institutions and individuals known to hold more than 5% of our common stock, as obtained from SEC filings. The percentages shown are based on outstanding shares of common stock as
of March 22, 2019. Unless otherwise noted, the address for each person listed is our principal office.
Beneficial Stock Ownership of Directors, Executive Officers
and Large
Stockholders Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Shares
Owned
(1)
|
|
|
Director
Deferred
Restricted
Stock
Units
(2)
|
|
|
Stock Options
Exercisable
|
|
|
Total
Shares
Owned
|
|
|
% of Total
Outstanding
(3)
|
|
Colin Reed, NEO and Director
|
|
|
1,336,327
|
(4)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,336,327
|
|
|
|
2.6%
|
|
Michael Bender, Director
|
|
|
22,361
|
|
|
|
2,953
|
|
|
|
-
|
|
|
|
25,314
|
|
|
|
*
|
|
Rachna Bhasin, Director
|
|
|
4,209
|
(5)
|
|
|
-
|
|
|
|
-
|
|
|
|
4,209
|
|
|
|
*
|
|
Alvin Bowles, Director
|
|
|
1,249
|
(5)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,249
|
|
|
|
*
|
|
Ellen Levine, Director
|
|
|
28,320
|
(5)
|
|
|
-
|
|
|
|
-
|
|
|
|
28,320
|
|
|
|
*
|
|
Fazal Merchant, Director
|
|
|
-
|
|
|
|
2,440
|
|
|
|
-
|
|
|
|
2,440
|
|
|
|
*
|
|
Patrick Moore, Director
|
|
|
-
|
|
|
|
9,045
|
|
|
|
-
|
|
|
|
9,045
|
|
|
|
*
|
|
Christine Pantoya, Director
|
|
|
200
|
|
|
|
-
|
|
|
|
-
|
|
|
|
200
|
|
|
|
*
|
|
Robert Prather, Director
|
|
|
3,960
|
|
|
|
24,092
|
|
|
|
-
|
|
|
|
28,052
|
|
|
|
*
|
|
Michael Roth, Director
|
|
|
37,431
|
(5)
|
|
|
-
|
|
|
|
-
|
|
|
|
37,431
|
|
|
|
*
|
|
Mark Fioravanti, NEO
|
|
|
178,337
|
|
|
|
-
|
|
|
|
-
|
|
|
|
178,337
|
|
|
|
*
|
|
Bennett Westbrook, NEO
|
|
|
19,952
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,952
|
|
|
|
*
|
|
Patrick Chaffin, NEO
|
|
|
14,759
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,759
|
|
|
|
*
|
|
Scott Lynn, NEO
|
|
|
12,789
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,789
|
|
|
|
*
|
|
All directors and executive officers
(as a group)
|
|
|
1,668,054
|
|
|
|
38,530
|
|
|
|
-
|
|
|
|
1,706,584
|
|
|
|
3.3%
|
|
Vanguard Inc.
|
|
|
7,861,894
|
(6)
|
|
|
-
|
|
|
|
-
|
|
|
|
7,861,894
|
|
|
|
15.3%
|
|
BlackRock, Inc.
|
|
|
4,964,938
|
(7)
|
|
|
-
|
|
|
|
-
|
|
|
|
4,964,938
|
|
|
|
9.7%
|
|
GAMCO, Inc.
|
|
|
4,266,457
|
(8)
|
|
|
-
|
|
|
|
-
|
|
|
|
4,266,457
|
|
|
|
8.3%
|
|
(1)
|
With respect to our NEOs, directors and executive officers, this column includes shares of common stock issuable upon the
vesting of RSUs that will vest on or prior to May 22, 2019. For a listing of the RSUs held by NEOs, see
Outstanding Equity Awards at 2018 Fiscal Year End
below. For a listing of the RSUs held by
non-employee
directors, see
Director Compensation
below.
|
(2)
|
Represents RSUs awarded to directors which have vested but receipt has been deferred. Also includes RSUs issued in lieu of
cash director fees to participating
|
|
directors. Directors may elect to defer receipt of RSUs awarded under our current and former omnibus incentive plans until either a specified date or the directors retirement or resignation
from the Board. This column reflects shares issuable to each director at the end of the applicable deferral period.
|
(3)
|
In calculating the percentages of outstanding stock, each persons RSUs that will vest on or prior to May 22,
2019 have been added to the total outstanding shares for such persons calculation.
|
28
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
(4)
|
Includes 598,582 shares credited to Mr. Reeds SERP, as defined in
Other Compensation
Information
Nonqualified Deferred Compensation
below. Mr. Reed does not have voting or investment power with respect to these shares, and his sole right is to receive these shares upon termination of employment in accordance
with the terms of his employment agreement.
|
(5)
|
For Ms. Bhasin, Mr. Bowles, Ms. Levine and Mr. Roth, includes 1,249 shares each issuable upon the
vesting of RSUs on May 3, 2019.
|
(6)
|
Based on information in: Amendment Number 5 to Schedule 13G filed with the SEC on January 31, 2019 by Vanguard
Specialized FundsVanguard Real Estate Index Fund, which has sole voting power with respect to 2,208,837 shares; and Amendment Number 6 to Schedule 13G filed with the SEC on February 12, 2019 by The Vanguard Group, Inc., which has
sole voting power with respect to 133,164 shares, shared voting power with respect to 51,176 shares, sole dispositive power with respect to 7,721,213 shares and shared dispositive power with respect to 140,681 shares. The address for the reporting
persons is 100 Vanguard Boulevard, Malvern, Pennsylvania 19355.
|
(7)
|
Based on information in Amendment No. 7 to Schedule 13G filed with the SEC on February 6, 2019 by
BlackRock, Inc., which has sole voting power with respect to 4,794,073 shares and sole dispositive power with respect to 4,964,938 shares. The address for the reporting person is 55 East 52
nd
Street, New York, New York 10055.
|
(8)
|
Based on information in Amendment No. 47 to Schedule 13D filed with the SEC on September 4, 2018 jointly by
GAMCO Investors, Inc. (GBL) and the following entities: GGCP, Inc. (GGCP); GGCP Holdings LLC (Holdings); Gabelli Funds, LLC (Funds); GAMCO Asset Management Inc. (GAMCO); Teton Advisors,
Inc. (Teton); Associated Capital Group, Inc. (Associated Capital); Gabelli & Company Investment Advisers, Inc. (GC); Gabelli Foundation, Inc. (Foundation);
MJG-IV
Limited Partnership
(MJG-IV);
and Mario Gabelli. GGCP (which had sole voting and dispositive power with respect to 17,000 shares of common stock)
makes investments for its own account and is the manager and member of Holdings, which is the controlling
|
|
shareholder of GBL. GBL, a public company listed on the NYSE, is the parent company for a variety of companies engaged in the securities business, including those named below. GAMCO (which had
sole voting power with respect to 2,857,562 shares of common stock and sole dispositive power with respect to 3,046,557 shares of common stock), a wholly-owned subsidiary of GBL, is an investment adviser registered under the Investment Advisers Act
of 1940. Funds, a wholly owned subsidiary of GBL, is a limited liability company. Funds (which had sole voting power with respect to 32,500 shares of common stock and sole dispositive power with respect to 1,151,300 shares of common stock) is an
investment adviser registered under the Investment Advisers Act of 1940 which provides advisory services for registered investment companies. Teton (which had sole voting and dispositive power with respect to 10,000 shares of common stock) is an
investment adviser registered under the Investment Advisers Act of 1940 which provides discretionary advisory services to registered investment companies. GC (which is a wholly-owned subsidiary of Associated Capital, which had sole voting and
dispositive power with respect to 6,000 shares of common stock) is an investment adviser registered under the Investment Advisers Act of 1940 which provides advisory services for registered investment companies and which had sole voting and
dispositive power with respect to 2,100 shares of common stock. The Foundation (which had sole voting and dispositive power with respect to 4,500 shares of common stock) is a private foundation. Mario Gabelli is the Chairman, a Trustee and
Investment Manager of the Foundation. Elisa M. Wilson is President of the Foundation. Mario Gabelli is the controlling stockholder, Chief Executive Officer and a director of GGCP and Chairman and Chief Executive Officer of GBL. Mario Gabelli is
also a member of Holdings. Mario Gabelli is the controlling shareholder of Teton. Mario Gabelli has sole voting and dispositive power with respect to 29,000 shares of common stock. The above reporting persons do not admit that they constitute a
group. The address for all of the above reporting persons is One Corporate Center, Rye, New York 10580.
|
29
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Compensation Discussion and Analysis
Executive Summary
Overview
Our executive
compensation programs are designed to attract, retain and motivate qualified, knowledgeable and talented executives who are capable of performing their responsibilities. In designing our executive compensation programs, our goals are to ensure that:
|
|
A significant portion of the total compensation paid to each named executive officer, or NEO, is in the form of at risk pay in order to
create proper incentives
for our executives to achieve
corporate and individual objectives and to both
maximize stockholder value
over the long-term and to
align pay with stockholders interests
;
|
|
|
A strong
pay-for-performance
philosophy synchronizes incentive payments with actual financial and business results
relative to performance expectations;
|
|
|
Our pay decisions are
transparent
to all stakeholders and tethered to
sound
governance measures
; and
|
|
|
Total compensation opportunity throughout our organization is
market competitive
to support recruitment and retention.
|
Our corporate objectives are to continue to increase funds available for distribution to our stockholders and to create long-term stockholder value. Consistent with
these goals and objectives, the Human Resources Committee, which acts as our compensation committee, has developed and approved an executive compensation program providing for a range of compensation levels for our NEOs with the intent of rewarding
strong performance and reducing compensation when our performance objectives are not achieved.
Company Highlights2018 Financial and
Operating Highlights
We believe that our results in 2018 reflect the continued overall strength of our Hospitality business segment, particularly the group
meetings sector in which we focus as well as the strategic investments we have made in our hotel properties over the past several years. In addition, the growth in our Entertainment business segment in 2018 continued to reflect our strategic focus
on expanding this business and the continued popularity of the country music genre and Nashville as a tourist destination. Our 2018 financial and operating highlights include:
|
We Increased Company Revenues to New Highs
|
|
✓
|
|
Company Total Revenues
Our total revenues for 2018 were $1.28 billion, an increase of 7.6% from
2017. This represents the highest level of revenues in our history.
|
|
✓
|
|
Segment Revenues
We experienced revenue growth in both our Hospitality and Entertainment segments:
|
|
|
|
Hospitality
Hospitality business segment revenue in 2018 increased 6.4% from 2017 to $1.13 billion.
|
|
|
|
Entertainment
Entertainment business segment revenue in 2018 increased 17.7% from 2017 to
$147.2 million.
|
|
We Saw Increased Net Income, AFFO and Adjusted EBITDA
|
|
|
|
Our consolidated net income
(1)
increased 50.3% from 2017 to
$264.7 million;
|
|
|
|
Our consolidated Adjusted Funds from Operations, or AFFO
(2)
, increased
5.7% from 2017 to $301.8 million; and
|
|
|
|
Our consolidated Adjusted EBITDA
(2)
increased 7.7% from 2017 to
$388.8 million.
|
30
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
We Continued to Increase Dividends to Stockholders
|
|
✓
|
|
Increased Dividends
In 2018 we increased our annual cash dividend by 6.3% (as compared to 2017) to $3.40
per share, paying approximately $174.5 million in dividends to our stockholders (including the dividends paid in January 2019 to holders of record as of December 28, 2018).
|
(1)
|
Includes a
one-time
gain of $131.4 million related to the Companys
acquisition of its increased ownership in the Gaylord Rockies joint venture recognized in the fourth quarter of 2018.
|
(2)
|
AFFO and Adjusted EBITDA are
non-GAAP
financial measures. For a definition of the
non-GAAP
financial measures used herein, a reconciliation of each
non-GAAP
financial measure to its most comparable GAAP financial measure, and an explanation of why we
believe these measures present useful information to investors, see Appendix A.
|
Company HighlightsTotal Stockholder Return
The following chart shows how a $100 investment in our common stock on December 31, 2013 would have grown to $204.23 on December 31, 2018, with dividends
reinvested quarterly. The chart also compares the TSR of our common stock to the same investment in the S&P 500 Index and the FTSE NAREIT Equity REITs Index over the same period, with dividends reinvested quarterly.
The stock price performance included in this graph is not necessarily indicative of future stock price performance.
31
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/13
|
|
|
12/14
|
|
|
12/15
|
|
|
12/16
|
|
|
12/17
|
|
|
12/18
|
|
Ryman Hospitality Properties, Inc.
|
|
|
100.00
|
|
|
|
132.19
|
|
|
|
136.08
|
|
|
|
175.81
|
|
|
|
202.32
|
|
|
|
204.23
|
|
S&P 500
|
|
|
100.00
|
|
|
|
113.69
|
|
|
|
115.26
|
|
|
|
129.05
|
|
|
|
157.22
|
|
|
|
150.33
|
|
FTSE NAREIT Equity REITs
|
|
|
100.00
|
|
|
|
130.14
|
|
|
|
134.30
|
|
|
|
145.74
|
|
|
|
153.36
|
|
|
|
146.27
|
|
Compensation Summary
The charts below
illustrate the balance of the elements of target total compensation
(3)
during 2018 for Mr. Reed, our CEO, and the average of the other NEOs.
As the charts above indicate, a significant portion of our NEOs target total compensation is performance-based and is also
aligned with the interests of our stockholders. Target total compensation for our CEO is weighted more toward long-term incentives than the other NEOs, as the Human Resources Committee wants to encourage our CEO, in particular, to focus on our
long-term growth.
(3)
|
Percentage of total compensation as calculated above is based on the 2018 base salary and the value of executive-level
perquisites paid to the NEO which were not paid generally to all employees, the 2018 short-term incentive compensation award (assuming achievement at the target level (such award was ultimately paid at 96.4% of the target payout level for the NEOs,
in addition to discretionary cash awards made to each NEO as described below)), the grant date fair value of the performance-based RSU awards granted in February 2018 (assuming vesting at the target achievement level) and the grant date fair value
of the time-based RSU awards granted in February 2018. Each compensation element is outlined in more detail in the
2018 Summary Compensation Table
set forth on page 45 below.
|
32
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Our Compensation Program
The key elements of the compensation program for our executive officers are:
|
|
|
|
|
|
|
|
|
Compensation
Element
|
|
Key
Characteristics
|
|
Why We Pay
This Element
|
|
Considerations
in
Determining
the Amount of
Pay
|
|
2018
Decisions
|
|
|
|
|
|
Base Salary
|
|
Fixed compensation.
Payable in cash.
Reviewed annually and adjusted when appropriate.
|
|
Necessary to attract and retain qualified executives.
Compensate for roles and responsibilities.
|
|
Level of responsibility.
Individual skills, experience and performance.
|
|
Our CEO did not receive an increase in base salary, and our other NEOs (on average) received a 3.75% increase in base salary. See page 34.
|
|
|
|
|
|
Short-Term Cash Incentive Compensation
|
|
Variable compensation.
Payable in cash based on performance against annually established performance objectives.
Reviewed annually and adjusted from year to year when appropriate.
|
|
Motivate and reward executives.
Incentivizes the executives to meet our short-term financial and operational objectives.
|
|
AFFO was the basis for the financial goal for the plan (and was the only goal for all
NEOs except Mr. Reed, whose goals were based 75% on the financial goal and 25% on designated strategic objectives, as described below).
|
|
Based on performance relative to the financial goal (and, in the case of our CEO, performance relative to designated strategic objectives), the committee approved a payout at 96.4% of the target payout for each NEO. Each NEO also
received additional discretionary cash incentive compensation in recognition of their contributions to our operating and financial performance. See page 35.
|
Long-Term Equity Incentive
Compensation
|
|
Variable compensation.
Performance-based RSUs vesting over a three-year performance period.
Time-based RSUs vesting ratably over four years.
|
|
Motivate and reward executives.
Aligns the interests of executives and stockholders and focuses the executives on long-term objectives over a
multi-year period.
Encourages retention through long-term vesting.
|
|
Performance-Based Awards
RSUs vest based on TSR relative to designated peer groups over a
3-year
performance period.
Awards pay out at a range from 0% to
150% of target with no shares earned for performance below 50% of financial target.
Time-Based Awards
RSUs which vest in 25% increments over 4 years.
|
|
The mix of long-term equity incentive awards granted to NEOs was approximately 50% performance-based RSUs and 50% time-based RSUs. See page 37.
|
|
|
|
|
|
Other Benefits
|
|
Fixed compensation.
Participation in broad-based plans at same cost as other employees.
Certain executive-level perquisites not paid generally to our other employees.
|
|
Allow senior executives to participate in broad-based employee benefit programs.
Provide competitive benefits to promote the health and well-being of our executive officers.
|
|
Level of benefits provided to all employees.
Benefits provided by other similarly-positioned companies.
|
|
Our NEOs received only modest executive-level perquisites. See page 39.
|
33
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
2018 Compensation Decisions
Our Human Resources Committee (which functions as our compensation committee) annually reviews our executive compensation program to determine how well actual
compensation targets and levels meet our overall compensation philosophy and to compare our compensation programs to our peers. The committee also oversees our compensation programs.
Compensation Peer Group
For 2018, the committee used a compensation peer
group of the following 14 companies:
|
|
|
American Campus
Communities, Inc.
Ashford Hospitality Trust, Inc.
Chatham Lodging Trust
Chesapeake Lodging Trust
Diamondrock Hospitality Co.
Hersha Hospitality Trust
Kilroy Realty Corp.
|
|
LaSalle Hotel Properties
Mid-America
Apartment
Communities, Inc.
Pebblebrook Hotel Trust
RLJ Lodging Trust
Summit Hotel Properties, Inc.
Sunstone Hotel Investors, Inc
Xenia Hotels & Resorts, Inc.
|
These companies were selected based on their industry focus and their status as a REIT, enterprise value, revenue size and debt to
capital ratio. This peer group was identical to the peer group we used in 2017, with the exception of the removal of FelCor Lodging Trust Inc. and the addition of Hersha Hospitality Trust and Xenia Hotels & Resorts, Inc.
The committee annually determines whether our overall executive compensation program is consistent with our business strategy and promotes our compensation philosophy.
In determining target total annual compensation for each NEO, the committee relies on its general experience and subjective considerations of various factors, including our strategic business goals, information with respect to the peer group set
forth above, proprietary and publicly available compensation surveys and data with respect to REITs and other public companies provided by Aon Hewitt, and each executive officers position, experience, level of responsibility, individual job
performance, contributions to our corporate performance, job tenure and future potential.
The committee does not set specific targets or utilize any formulaic
benchmarks for overall compensation or for allocations between fixed and performance-based compensation, cash and
non-cash
compensation or short-term and long-term compensation. In addition, the committee uses
proprietary and publicly available compensation surveys and data with respect to REITs
and other public companies provided by our compensation consultant, Aon Hewitt, to obtain a general understanding of current compensation practices, including to confirm that the base salary and
other elements of target total compensation opportunity for our executive officers is at a market-competitive level. The committee does not specifically target or benchmark in any formulaic manner any element of compensation or the total
compensation payable to NEOs based on these factors.
Base Salary
Base
salary is designed to compensate our NEOs for their roles and responsibilities and to provide a secure level of guaranteed cash compensation. We have employment agreements with Mr. Reed, Mr. Fioravanti and Mr. Westbrook that provide
for a minimum base salary. We have severance agreements with Mr. Chaffin and Mr. Lynn that do not provide for any minimum base salary.
Each NEOs
base salary was set based on:
|
|
the executives roles and responsibilities; and
|
|
|
the executives skills, experience and performance.
|
In 2018, base salary represented approximately 19% of our
CEOs total compensation package and (on average) approximately 31% of our other NEOs total compensation package (calculated in the manner described on page 32). The committee annually reviews the base salaries of each NEO and may make
adjustments based on individual performance and changes in roles and responsibilities.
At its February 21, 2018 meeting, the committee reviewed the existing
base salaries and perquisites for our NEOs. Specifically, the committee considered each NEOs current base pay, taking into account base salary levels paid to persons holding similar positions at peer companies, as well as the adjustments made
to each NEOs base salary in 2017. Based on its review, the committee determined that no adjustment to base salary in 2018 for Mr. Reed was needed, while the committee made modest increases to the base salaries of Messrs. Fioravanti,
Westbrook and Chaffin. With respect to Mr. Lynn, the committee determined that a larger percentage adjustment to base salary was necessary to maintain a market-competitive level of compensation for this executive.
34
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Based on its review of the factors described above, the committee determined that the base salary amounts for the NEOs
should be set at the following levels:
|
|
|
|
|
|
|
2018 Base
Salary
($)
|
|
% Change
from 2017
Base
Salary
|
Colin Reed
|
|
925,000
|
|
-
|
Mark Fioravanti
|
|
530,450
|
|
3.0%
|
Bennett Westbrook
|
|
397,838
|
|
3.0%
|
Patrick Chaffin
|
|
334,750
|
|
3.0%
|
Scott Lynn
|
|
344,500
|
|
6.0%
|
Short-Term Cash Incentive Compensation
We
provide annual cash incentive compensation designed to reward achievement of specific previously established short-term financial and strategic goals.
2018
Performance Goals
For 2018 the committee determined that the NEOs would have the opportunity to earn the following percentage of their base salary based on the
achievement of the financial performance goals (and, in the case of Mr. Reed, designated strategic objectives) described below.
The 2018 percentages of base
salary at the threshold, target and stretch levels for each NEO were set at the following percentages (unchanged from 2017):
|
|
|
|
|
|
|
|
|
|
|
|
|
Threshold
Level
|
|
|
Target
Level
|
|
Stretch
Level
|
|
|
|
|
|
Mr. Reed
|
|
|
75%
|
|
|
150%
|
|
|
300%
|
|
Mr. Fioravanti
|
|
|
62.5%
|
|
|
125%
|
|
|
250%
|
|
Mr. Westbrook
|
|
|
50%
|
|
|
100%
|
|
|
200%
|
|
Mr. Chaffin
|
|
|
50%
|
|
|
100%
|
|
|
200%
|
|
Mr. Lynn
|
|
|
50%
|
|
|
100%
|
|
|
200%
|
|
The percentage of salary awarded for performance falling between the threshold and target achievement levels and the target and stretch
achievement levels was to be determined using straight-line interpolation.
In 2018, assuming performance at the target level of achievement, short-term cash
incentive compensation represented approximately 28% of our CEOs total compensation package and (on average) approximately 33% of our other NEOs total
compensation package (calculated in the manner described on page 32).
In 2018, the performance targets,
measured using Adjusted Funds From Operation as reported (AFFO), excluding income tax expense or benefit (Further Adjusted AFFO), established by the committee were:
|
|
Threshold Performance Goal:
Further Adjusted AFFO of $276.3 million.
|
|
|
Target Performance Goal:
Further Adjusted AFFO of $307.0 million.
|
|
|
Stretch Performance Goal:
Further Adjusted AFFO of $337.7 million.
|
The committee selected this performance
metric because it is a measure of our operations without regard to specified
non-cash
items such as real estate depreciation and amortization, gain or loss on sale of assets and certain other items which we
believe are not indicative of the performance of our underlying hotel properties. Moreover, AFFO is one of the principal tools used by our management and the investment community in evaluating our financial performance as a REIT. These performance
levels were set by the committee at the beginning of 2018 after thorough discussion with management regarding our anticipated financial performance. In choosing this goal, the committee considered the general economic climate expected in 2018, the
expected conditions in the hospitality industry and our expected financial performance, including our guidance for 2018, as reflected in our earnings release issued in the first quarter of 2018. The committee intended the target performance goal to
be a challenging level of achievement. The committee attempted to set the threshold, target and stretch performance goals to ensure that the relative level of difficulty of achieving these performance levels would be generally consistent with prior
years. For information regarding the manner in which AFFO is calculated from our financial statements, see Appendix A to this proxy statement.
The awards to the
NEOs (other than Mr. Reed) were based solely on our level of achievement of Further Adjusted AFFO. The award to Mr. Reed was based 75% on our achievement of Further Adjusted AFFO and 25% on our achievement of the strategic objectives,
approved in advance by the committee, of achieving effective capital allocation and balance sheet management, specifically including maintaining
35
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
leverage with a designated range, ensuring compliance with applicable debt covenants and managing interest rate risk associated with floating rate indebtedness.
When the committee established these targets at the beginning of 2018, it made a determination that it would have the discretion to adjust Further Adjusted AFFO for the
year to exclude losses or expense, or income or gain, related to certain unusual, infrequently occurring or other specified events as set forth in our omnibus incentive plan. In addition, under the terms of our omnibus incentive plan, the committee
may exercise negative discretion in determining the final amounts of the short-term cash incentive awards payable at any given level of performance to ensure that such awards accurately reflect our actual performance. The committee
also had the option of lowering the amount of, or not awarding, annual cash incentive compensation otherwise payable to an executive under the plan for 2018 if the executive did not attain a minimum-level annual performance rating under the
companys employee evaluation program, which is a prerequisite to receiving cash incentive compensation under the plan.
2018 Short-Term Incentive
Compensation Awards
In analyzing our results for purposes of determining the level of achievement under the short-term incentive compensation plan, the committee
reviewed our operating and financial results for 2018.
In performing its review, the committee made note of the following financial and operating highlights:
|
|
The financial results of our Hospitality business segment, which the committee believed reflected the continued strength of that business, particularly the group meetings sector in which we focus.
|
|
|
The successful opening of the Gaylord Texan rooms and meeting space expansion project and the Gaylord Opryland SoundWaves project during 2018.
|
|
|
The completion of the companys acquisition of a majority interest in the joint venture which owns the Gaylord Rockies Resort & Convention Center.
|
|
|
The Ole Red Nashville entertainment venue successfully opened in May 2018, and development sites for two additional Ole Red locations (Gatlinburg, Tennessee and Orlando, Florida) were secured during 2018.
|
|
|
Our continued focus on returning capital to our stockholders, as evidenced by the 6.3% increase in the amount of our annual dividend in 2018 (as compared to 2017), which resulted in the payment of approximately
$174.5 million in dividends on our common stock (including the fourth quarter dividend paid in early 2019 to holders of record as of December 28, 2018).
|
The committee determined that the companys level of Further Adjusted AFFO achievement in 2018 for purposes of our short-term incentive compensation plan was
$304.5 million, which using straight-line interpolation was equivalent to a payout level of 96.4% of the target performance goal. There were no gains or losses related to unusual, infrequently occurring or other specified events set
forth in our omnibus incentive plan which were excluded by the committee in connection with our calculation of Further Adjusted AFFO (which were not included in the calculation of AFFO) for purposes of our short-term incentive compensation plan.
The committee also determined that Mr. Reed had met the individual strategic performance objectives described above, which combined with the AFFO achievement level
described above, resulted in a payout level equal to 96.4% of the target payout level for Mr. Reed.
The committee also determined that each NEO should
receive an additional amount of cash incentive compensation, as listed in the table below, due to their contributions to the companys operating and financial performance in 2018, including, in particular, with respect to:
Mr. Reed, his efforts in overseeing the companys senior management team and his contributions to the companys financial results; Mr. Fioravanti, his leadership of the balance sheet and capital markets activities
undertaken and contemplated by the company; Mr. Westbrook, his oversight of the successful development and construction projects completed in 2018; Mr. Chaffin, his efforts in effectively supervising the companys relationship with
the manager of its hotel properties; and Mr. Lynn, his oversight of the companys legal and compliance functions.
The committee also reviewed the annual
performance rating of each NEO and determined that each NEO met the minimum level performance rating.
36
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
As a result, the committee approved the following short-term cash incentive compensation awards:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculated
Short-Term
Cash
Incentive
Compen-
sation
($)
|
|
|
Additional
Short-
Term Cash
Incentive
Compen-
sation
($)
|
|
|
Total
Short-
Term Cash
Incentive
Compen-
sation
(1)
($)
|
|
Mr. Reed
|
|
|
1,350,037
|
|
|
|
149,963
|
|
|
|
1,500,000
|
|
Mr. Fioravanti
|
|
|
635,265
|
|
|
|
44,635
|
|
|
|
680,000
|
|
Mr. Westbrook
|
|
|
381,159
|
|
|
|
28,841
|
|
|
|
410,000
|
|
Mr. Chaffin
|
|
|
320,716
|
|
|
|
49,284
|
|
|
|
370,000
|
|
Mr. Lynn
|
|
|
328,132
|
|
|
|
26,868
|
|
|
|
355,000
|
|
(1)
|
The estimated threshold, target and stretch payout levels for each NEO established under the short-term cash incentive
plan for 2018 are listed in
2018
Grants of Plan-Based Awards
below.
|
2018 Long-Term Equity Incentive Compensation
Our long-term equity incentive compensation plan is designed to align the interests of our NEOs and stockholders and focus our NEOs on long-term objectives over a
multi-year period. Long-term equity incentive awards are also intended to attract and retain our NEOs through long-term vesting. In 2018, long-term equity incentive compensation represented approximately 51% of our CEOs total compensation
package and (on average) approximately 34% of our other NEOs total compensation package (calculated in the manner described on page 32).
Long-Term Equity
Incentive Compensation Plan Components
Our long-term equity incentive plan components are:
Performance-Based RSUs:
|
|
Vest over a three-year period based on our TSR over the award cycle, as compared to our peers.
|
|
|
Awards settled in stock, with cash dividends on RSUs being paid only upon RSUs that ultimately vest upon the achievement of performance goals.
|
|
|
Granted only to the NEOs and senior executives.
|
Time-Based RSUs:
|
|
Annual time-based RSU awards vest in equal amounts over four years, beginning on the first anniversary of the grant date. In certain cases, in
|
|
|
connection with a promotional RSU grant or to aid in retention, the committee may designate that certain time-based RSU awards will vest in equal installments over two years, beginning on the
third anniversary of the grant date.
|
|
|
Awards settled in stock, with dividends on RSUs held by our NEOs being paid in additional RSUs only upon RSUs that ultimately vest.
|
|
|
Granted to the NEOs, as well as to other eligible employees.
|
2018 Long-Term Equity Incentive Compensation Awards
For 2018, the committee discussed with Aon Hewitt the most appropriate way to motivate and retain our executives. The committee believed it was important to
continue to use RSU awards instead of stock options to better align the interests of our executives with our stockholders, to encourage executive retention and to conform to compensation practices in the REIT industry.
As a result of these discussions, the committee decided to structure long-term equity incentive compensation awards in 2018 as a combination of performance-based RSUs
and time-based RSUs. The determination of the number of RSUs to award to each NEO was based on a number of factors including but not limited to corporate and individual performance, historical grants and competitive practices.
As a result of the determinations discussed above, on February 21, 2018, the committee made the following long-term incentive compensation awards to the NEOs:
|
|
|
|
|
|
|
|
|
|
|
Performance-
Based RSU
Awards
(1)
(#)
|
|
|
Annual
Time-
Based RSU
Awards
(2)
(#)
|
|
Mr. Reed
|
|
|
16,823
|
|
|
|
17,929
|
|
Mr. Fioravanti
|
|
|
5,360
|
|
|
|
5,712
|
|
Mr. Westbrook
|
|
|
2,680
|
|
|
|
2,856
|
|
Mr. Chaffin
|
|
|
2,255
|
|
|
|
2,403
|
|
Mr. Lynn
|
|
|
2,320
|
|
|
|
2,473
|
|
(1)
|
Up to 150% of the performance-based RSUs listed above will vest on March 15, 2021 based on our TSR performance over
the three-year award cycle (January 1, 2018 December 31, 2020) relative to the median of the TSR performance of the 2018 Performance Peer Groups described below.
|
(2)
|
These RSUs vest ratably over four years, beginning on March 15, 2019.
|
37
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
2018 Performance-Based RSU Awards (2018-2020 Performance Period)
The amount of the performance-based RSUs which will ultimately vest on March 15, 2021 will be determined by comparing our TSR performance during the performance
period (January 1, 2018 December 31, 2020) relative to the median of the TSR performance of the following two peer groups (the 2018 Performance Peer Groups), weighted equally: (1) our 2018 compensation peer group listed
above; and (2) the following companies within the FTSE NAREIT Lodging Resorts Index (which were selected by the committee based on their industry focus and their status as a REIT, enterprise value, revenue size, debt to capital ratio and TSR
performance over a three year period):
|
|
|
Apple Hospitality REIT, Inc.
Ashford Hospitality Prime
Ashford Hospitality Trust, Inc.
Chatham Lodging Trust
Chesapeake Lodging Trust
Condor Hospitality Trust, Inc.
Diamondrock Hospitality Co.
Hersha Hospitality Trust
Hospitality Properties Trust
Host Hotels & Resorts, Inc.
|
|
InnSuites Hospitality Trust
LaSalle Hotel Properties
Park Hotels & Resorts, Inc.
Pebblebrook Hotel Trust
RLJ Lodging Trust
Sotherly Hotels, Inc.
Summit Hotel Properties, Inc.
Sunstone Hotel Investors, Inc.
Xenia Hotels & Resorts, Inc.
|
The peer group listed above was the same as the peer group used for the 2017 performance-based RSU awards granted by the company, except
for the removal of FelCor Lodging Trust Inc. and the addition of InnSuites Hospitality Trust and Park Hotels & Resorts, Inc.
Specifically, the awards will
vest as follows:
|
|
|
|
|
Company TSR
Performance
|
|
% of Award
Vesting
|
|
Greater than 15 percentage points above the median TSR performance of the 2018 Performance Peer Groups
|
|
|
150%
|
|
Equal to the median TSR performance of the 2018 Performance Peer Groups
|
|
|
100%
|
|
15 percentage points below the median TSR performance of the 2018 Performance Peer Groups
|
|
|
50%
|
|
Greater than 15 percentage points below the median TSR performance of the 2018 Performance Peer Groups
|
|
|
0%
|
|
If the performance achieved falls in between the established performance goal levels, the percentage of the award earned by the NEO will
be determined using straight-line interpolation and rounding to the nearest full share. The awards also provide that if our TSR is negative, on an absolute basis, the committee
may, in its discretion, reduce by 25% the number of awards ultimately vesting. In no event will the final value of the award exceed 500% of the fair market value of our common stock on the grant
date of February 21, 2018. The committee believes that limiting the maximum value of the award ensures the NEOs are not disproportionally awarded for performance.
The committee
re-evaluates
the 2018 Performance Peer Groups for each fiscal year to take into account changes to the composition
of the 2018 Performance Peer Groups (i.e., corporate changes such as mergers or delistings), or to otherwise modify the terms of the award to take into account such other factors which the committee in its sole discretion has determined. The
committee has not exercised this discretion in connection with the 2018 performance-based RSU awards except to reflect certain corporate changes in the peer group companies.
The committee believed the amount of these awards was appropriate given our compensation philosophy and objectives, specifically noting that achievement of greater than
target level performance would have also resulted in higher than average TSR to our stockholders, as compared to our peers. In 2018, performance-based RSUs represented approximately 26% of our CEOs total compensation package and
(on average) approximately 17% of our other NEOs total compensation package (calculated in the manner described on page 32).
2018 Time-Based RSU Awards
The time-based RSUs granted to the NEOs reflected in the chart above vest ratably over four years, beginning on March 15, 2019. The committee believed
the amount of the time-based RSU awards made to our NEOs was appropriate given our compensation philosophy and objectives, including the need to retain our executives. In 2018, time-based RSUs represented approximately 25% of our CEOs total
compensation package and (on average) approximately 17% of our other NEOs total compensation package (calculated in the manner described on page 32).
Vesting of 2016 Performance-Based RSU Awards in March 2019 (2016-2018 Performance Period)
In February 2016 we awarded performance-based RSUs to each NEO, which ultimately were to vest
38
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
based on the companys TSR performance over the
3-year
award cycle (2016-2018), as compared to the TSR for the designated performance peer groups
during the same performance period.
Specifically, the awards were to vest as follows:
|
|
|
|
|
Company TSR
Performance
|
|
% of Award
Vesting
|
|
Greater than 15 percentage points above the median TSR performance of the 2016 Performance Peer Groups
|
|
|
150%
|
|
Equal to the median TSR performance of the 2016 Performance Peer Groups
|
|
|
100%
|
|
15 percentage points below the median TSR performance of the 2016 Performance Peer Groups
|
|
|
50%
|
|
Greater than 15 percentage points below the median TSR performance of the 2016 Performance Peer Groups
|
|
|
0%
|
|
Our TSR over the performance period, calculated pursuant to the terms of the performance-based RSU agreements, was approximately 46
percentage points above the median TSR performance of the designated performance peer groups.
As a result, the 2016 performance-based RSUs ultimately vested at the
150% level in March 2019 as follows:
|
|
|
|
|
|
|
2016 Performance-
Based RSU Awards
Vesting in March 2019
(#)
|
|
Colin Reed
|
|
|
35,775
|
|
Mark Fioravanti
|
|
|
12,627
|
|
Bennett Westbrook
|
|
|
5,648
|
|
Patrick Chaffin
|
|
|
5,051
|
|
Scott Lynn
|
|
|
5,051
|
|
Benefits and Perquisites
Our benefit programs
are based upon an assessment of competitive market factors and a determination of what is needed to attract and retain qualified executives. Our primary benefits for executives include participation in our broad-based plans at the same cost as other
employees. These plans include a tax qualified 401(k) savings plan (with matching contributions up to four percent of a participants pay), health and dental plans and various disability and life insurance plans.
We also provide a limited amount of executive-level perquisites to our NEOs and other designated senior executives,
including the ability to participate in our unfunded, unsecured, supplemental deferred compensation plan, or SUDCOMP, with a company matching component. Details about our SUDCOMP may be found under
Other Compensation InformationNonqualified
Deferred Compensation
on page 51.
Our directors, NEOs and other employees routinely use commercial air service for business travel, and we generally reimburse
them only at the coach or business class rate.
Although we do not own a corporate airplane, we do maintain a limited aircraft program to provide our executives with
timely and cost-effective travel alternatives in connection with our business activities. We do not operate any aircraft, own or lease a hangar or employ pilots. Instead, we have purchased a fractional interest in an aircraft. We pay a fixed monthly
fee, plus a variable charge for hours actually flown. Our directors, NEOs and other employees use this aircraft for selected business trips when commercial air service is unavailable or otherwise impractical, based on the availability and cost of
commercial air service, the travel time involved, the number of employees traveling and the need for flexible travel arrangements. All travel under this program must be approved by our CEO.
Mr. Reeds employment agreement provides that he is entitled to a limited amount of personal aircraft usage on an annual basis. We also make the aircraft
available to our other executives for limited personal use, which is typically limited to permitting the executives spouse or other family member to accompany the executive on required business travel. We believe allowing limited personal use
of our aircraft program serves to reduce our executives personal travel time and to increase the time they can conduct company business on our behalf.
For
more information about this perquisite, and amounts reported as income in 2018 for each NEO, see the
All Other Compensation
table on page 46.
These
executive-level perquisites represented approximately 2% of our CEOs total compensation package and (on average) approximately 2% of our
39
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
other NEOs total compensation package (calculated in the manner described on page 32).
When we recruited
Mr. Reed to join our company in 2001, we agreed to pay Mr. Reed a retirement benefit pursuant to a Custom
Mid-Career
Supplemental Employee Retirement Plan, or SERP.
This benefit, which is described in
Other Compensation InformationNonqualified Deferred Compensation
below, was in the committees view essential to
attracting Mr. Reed to employment with us and has also proved valuable in securing his extended employment. The company has fully satisfied its funding obligations under the SERP by previously paying, in total, $3.5 million to
Mr. Reeds SERP account (as described below), and the current balance in Mr. Reeds SERP account in excess of such amount is attributable to investment gains and losses associated with the assets in the SERP account (currently
shares of our common stock).
Other Compensation Information
Stock Ownership and Retention Guidelines
The committee has adopted stock
ownership guidelines for our senior executives. These guidelines are designed to encourage our executives to have a meaningful equity ownership in our company, thereby linking their interests with those of our stockholders. These guidelines provide
that within five years of becoming a senior executive, each executive must own (by way of shares owned directly or indirectly (including through our 401(k) plan) and shares represented by unvested time-based RSUs, but not including unexercised stock
options or performance-based RSUs) common stock with a value of either five times (5x) base salary for Mr. Reed, three times (3x) base salary for the NEOs, and two times (2x) base salary for other executives subject to these guidelines. The
guidelines also provide that if an executive is not currently in compliance with this guideline (regardless of the compliance grace period), the executive must retain 50% of the net shares (after satisfying any tax obligations and any required
payments upon exercise) received upon vesting of RSUs or the exercise of stock options.
As of January 31, 2019 (the annual compliance date) all of the NEOs were in compliance with the guidelines, as
follows:
|
|
|
|
|
|
|
|
|
|
|
Required Ownership as
of January 31, 2019
(1)
|
|
|
Shares
Owned
|
|
Colin Reed
|
|
|
57,561
|
|
|
|
1,339,039
(2)
|
|
Mark Fioravanti
|
|
|
19,805
|
|
|
|
185,437
(3)
|
|
Bennett Westbrook
|
|
|
14,854
|
|
|
|
24,952
(3)
|
|
Patrick Chaffin
|
|
|
12,498
|
|
|
|
19,164
(3)
|
|
Scott Lynn
|
|
|
12,862
|
|
|
|
15,232
(3)
|
|
(1)
|
The number of shares required to be owned by an NEO is an amount equal to (i) the product obtained by multiplying the
NEOs base salary times the applicable multiple (5x for Mr. Reed and 3x for the other NEOs)
divided by
(ii) the closing market price of our common stock on January 31, 2019 ($80.35).
|
(2)
|
Includes 592,476 shares credited to Mr. Reeds SERP and 52,180 shares of common stock issuable upon the vesting
of time-based RSUs.
|
(3)
|
Includes the following number of shares of common stock issuable upon the vesting of time-based RSUs: Mr. Fioravanti:
22,290; Mr. Westbrook: 10,486; Mr. Chaffin: 7,589; and Mr. Lynn: 7,614.
|
Post-Termination Benefits
The committee believes that severance and change of control benefits assist in attracting and retaining qualified executives. The committee believes these benefits have
proven particularly important in providing for continuity of management during the period following our REIT conversion and transition-related efforts. The levels of payments and benefits upon termination were set to be at a market-competitive level
based upon each executives experience and level in the organization.
Mr. Reed, Mr. Fioravanti and Mr. Westbrook have employment agreements that
provide for cash severance payments and certain other benefits if termination occurs without cause or if the executive leaves for good reason (as defined in their employment agreement). These agreements also provide for cash
compensation and certain other benefits in the event of termination following a change of control of the company (i.e., a double trigger). Mr. Chaffin and Mr. Lynn have severance agreements that provide for cash
compensation and certain other benefits only in the event of termination following a change of control of the company (i.e., a double trigger).
40
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
In addition, no tax
gross-ups
are provided in connection with any severance
payments to our NEOs. Information regarding these payments, including a definition of key terms and the amount of benefits that would have been received by our NEOs had termination occurred on December 31, 2018, is found under
Potential
Payments on Termination or Change of Control
on page 53.
Tax Deductibility Considerations
The committees policy is to consider the tax treatment of compensation paid to our executive officers with appropriate rewards for their performance.
Section 162(m) of the Internal Revenue Code generally disallows public companies a tax deduction for their compensation in excess of $1.0 million paid to their chief executive officers and certain of their other executive officers. Prior
to the enactment of the Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2017, this limitation did not apply to qualified performance-based compensation within the meaning of Section 162(m).
As the result of the TCJA, the exception to the deduction limit of Section 162(m) for qualified performance-based compensation is not applicable to
compensation paid after January 1, 2018 unless paid pursuant to any written binding contract (such as certain long-term equity incentive compensation awards) which was in effect on November 2, 2017. While the committee considers the tax
treatment of compensation paid to our executive officers and the potential
non-deductibility
of compensation under Section 162(m), the committee also believes that the interests of our stockholders are
best served if we retain discretion and flexibility in awarding compensation to our NEOs, even where the compensation paid under such programs may not be fully deductible (and the committee has approved and may continue to approve the payment of
compensation that is outside of the deductibility limitations of Section 162(m)).
Because we qualify as a REIT for Federal income tax purposes, we expect to
distribute at least 100% of our net taxable income each year and therefore will not pay Federal income tax on our REIT taxable income. As a result, based on the level of cash compensation paid to our executive officers, we do not expect that any
loss of a Federal income tax deduction as a result of Section 162(m) would materially impact our income tax liability. The committee will continue to monitor the
tax and other consequences of our executive compensation programs as part of its primary objective of ensuring that compensation paid to our executives is reasonable, performance-based and
consistent with our goals.
Equity Grant Practices
Our omnibus incentive
plan allows the committee to grant various types of equity awards to any eligible employee, including the NEOs. Annual equity awards to executives are approved by the committee and occur on the date of our first quarterly committee meeting of each
year. Consistent with the terms of our omnibus incentive plan, the committee has also delegated to the CEO the authority to make limited equity grants to new members of our management team, which are then ratified by the committee.
These awards are granted pursuant to a formula based on a specified dollar amount, with the number of shares for each RSU award determined by dividing the dollar amount
by the closing market price of our stock on the date immediately prior to the grant date. Annual RSU awards for directors are approved by the committee and are granted on the date the director is elected to the Board. These awards are granted
pursuant to a formula based on a specified dollar amount, with the number of shares for each RSU grant determined by dividing the dollar amount by the closing market price of our stock on the date immediately prior to the grant date.
Role of the Human Resources Committee and Management
The committee awards
compensation to our NEOs and other executives consistent with our philosophy that compensation paid to our executives be fair, reasonable and competitive. The committee establishes and monitors compliance with our compensation philosophy, and the
committee also oversees the development and administration of our compensation programs. Our management is responsible for the administration of our compensation programs once approved by the committee.
The committee makes all compensation decisions with respect to our NEOs, which are ratified by our Board. Our CEO annually reviews the performance of, and provides
compensation recommendations for, each NEO (other than the CEO). In the case of the
41
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
CEO, the CEO provides the committee with a self-assessment of his performance. The committee then reviews these items and discusses and approves compensation for each NEO based on the
considerations previously discussed.
For a complete description of the committees members and its responsibilities, as well as information regarding the
authority of our CEO to make limited equity grants to new members of our management team, see
Committees of the Board
on page 19. You may also view the committees charter on our website at
www.rymanhp.com
(
under
Corporate Governance on the Investor Relations page).
Role of the Compensation Consultant
The committee has retained Aon Hewitt as its outside compensation consultant since 2013. During 2018, Aon Hewitt regularly attended committee meetings and reported
directly to the committee on matters relating to compensation for our executives. During 2018 the committee requested that Aon Hewitt:
|
|
Analyze the compensation for our NEOs and other executives and assess how target and actual short-term incentive compensation aligned with our compensation philosophy and objectives.
|
|
|
Develop recommendations for the committee on the size and structure of long-term incentive compensation awards.
|
|
|
Assist the committee in the review of this proxy statement and this Compensation Discussion and Analysis.
|
|
|
Provide the committee with ongoing advice and counsel on market compensation practices, trends and legal and regulatory changes and their impact on our compensation programs.
|
Advisory Vote on Executive Compensation
At our annual meeting in May 2018, we
held a stockholder advisory vote on the compensation of our NEOs, commonly referred to as a
say-on-pay
vote. In our
say-on-pay
vote, approximately 95.5% of the stockholder votes, excluding broker
non-votes,
were cast in favor of the
say-on-pay
resolution. As the committee reviewed our compensation practices, it was mindful of the level of support our stockholders had previously expressed for our compensation
programs, including our pay for performance philosophy and emphasis on variable compensation.
The
committee intends to continue to consider the outcome of future advisory
say-on-pay
votes when making executive compensation decisions.
2019 NEO Compensation
At its February 20,
2019 meeting, the committee reviewed and approved the compensation to be paid to the NEOs for 2019, in light of our compensation philosophy described above.
Base Salary
The committee determined that the base salaries for the NEOs for
2019 should be:
|
|
|
|
|
|
|
|
|
|
|
2019 Base
Salary
($)
|
|
|
% Increase
from 2018
Base Salary
|
|
Colin Reed
|
|
|
1,000,000
|
|
|
|
8.1
|
%
|
Mark Fioravanti
|
|
|
546,400
|
|
|
|
3.0
|
%
|
Bennett Westbrook
|
|
|
409,800
|
|
|
|
3.0
|
%
|
Patrick Chaffin
|
|
|
360,000
|
|
|
|
7.5
|
%
|
Scott Lynn
|
|
|
361,700
|
|
|
|
5.0
|
%
|
Short-Term Cash Incentive Compensation
The
committee also established criteria for short-term cash incentive compensation pursuant to our omnibus incentive plan. The committee determined that each NEO will have the opportunity to earn the following percentage of his base salary based on the
achievement of designated financial goals established under the incentive compensation plan, based on AFFO (and, in the case of Mr. Reed, designated strategic objectives) established by the committee, at the following threshold, target and
stretch levels:
|
|
|
|
|
|
|
|
|
|
|
Threshold
Level
|
|
Target
Level
|
|
|
Stretch
Level
|
Colin Reed
|
|
75%
|
|
|
150%
|
|
|
300%
|
Mark Fioravanti
|
|
62.5%
|
|
|
125%
|
|
|
250%
|
Bennett Westbrook
|
|
50%
|
|
|
100%
|
|
|
200%
|
Patrick Chaffin
|
|
50%
|
|
|
100%
|
|
|
200%
|
Scott Lynn
|
|
50%
|
|
|
100%
|
|
|
200%
|
42
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
These percentages were unchanged from 2018. In choosing the AFFO target performance goal for 2019, the
committee considered the general economic climate expected in 2019, the expected conditions in the hospitality industry and our expected financial performance, including our guidance for 2019, as reflected in our earnings release issued in the first
quarter of 2019. In setting these goals, the committee attempted to set performance goals to ensure that the relative level of difficulty of achieving these levels was consistent with prior years.
In establishing these targets for 2019, the committee made a determination that it will have the discretion to adjust AFFO for the year to exclude losses or expense, or
income or gain, related to certain unusual, infrequently occurring or other specified events as set forth in our omnibus incentive plan. In addition, under the terms of our omnibus incentive plan, the committee may exercise negative
discretion in determining the final amounts of the short-term cash incentive awards payable at any given level of performance to ensure that such awards accurately reflect our actual performance. The committee also has retained the
discretion to lower the amount of, or not award, annual cash incentive compensation otherwise payable to an executive under the plan for 2019 if the executive does not
attain a minimum-level annual performance rating under the companys employee evaluation program, which is a prerequisite to receiving cash incentive compensation under the plan.
Long-Term Equity Incentive Compensation
The committee also made the following
long-term equity incentive compensation awards to the NEOs:
|
|
|
|
|
|
|
|
|
|
|
Performance-
Based
RSU
Awards
(1)
(#)
|
|
|
Time-
Based RSU
Awards
(2)
(#)
|
|
Colin Reed
|
|
|
15,000
|
|
|
|
15,000
|
|
Mark Fioravanti
|
|
|
5,000
|
|
|
|
5,000
|
|
Bennett Westbrook
|
|
|
2,500
|
|
|
|
2,500
|
|
Patrick Chaffin
|
|
|
2,500
|
|
|
|
2,500
|
|
Scott Lynn
|
|
|
2,500
|
|
|
|
2,500
|
|
(1)
|
Up to 150% of the performance-based RSUs listed above will vest on March 15, 2022 based on our TSR performance over
the three-year award cycle (January 1, 2019 December 31, 2021) relative to the median of the TSR performance of the designated performance peer groups for such awards.
|
(2)
|
The time-based RSUs vest ratably over four years, beginning March 15, 2020.
|
43
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Human Resources Committee Report
The following report of the Human Resources Committee does not constitute soliciting material and should not be deemed incorporated by reference into any other
filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent we specifically incorporate this report herein.
The Human
Resources Committee (which functions as our compensation committee), comprised of independent directors, reviewed and discussed the above Compensation Discussion and Analysis with the companys management. Based on its review and these
discussions, the Human Resources Committee recommended to the Board that the Compensation Discussion and Analysis be included in these proxy materials.
Human
Resources Committee:
Michael Bender, Chairman
Ellen Levine
Robert Prather
Michael Roth
44
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Executive Compensation
The Summary Compensation Table below shows compensation information about our principal executive officer, our principal financial officer and the three other most
highly compensated executive officers as of December 31, 2018 other than our principal executive officer and principal financial officer. As required by SEC rules, the compensation amounts listed below include
non-cash
items such as the grant date fair value of equity awards (some of which are performance-based and may or may not ultimately be earned).
2018 Summary Compensation Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name and Principal
Position
(a)
|
|
Year
(b)
|
|
Salary
(1)
($)
(c)
|
|
|
Bonus
(2)
($)
(d)
|
|
|
Stock
Awards
(3)
($)
(e)
|
|
|
Option
Awards
($)
(f)
|
|
Non-Equity
Incentive
Plan
Compen-
sation
(4)
($)
(g)
|
|
|
Change in
Pension
Value
and
Nonqual-
ified
Deferred
Compen-
sation
Earnings
($)
(h)
|
|
All Other
Compen-
sation
(5)
($)
(i)
|
|
|
Total
($)
(j)
|
|
Colin Reed
Chairman & Chief Executive Officer
|
|
2018
|
|
|
925,165
|
|
|
|
149,963
|
|
|
|
2,478,521
|
|
|
-
|
|
|
1,350,037
|
|
|
-
|
|
|
89,014
|
|
|
|
4,992,700
|
|
|
2017
|
|
|
907,830
|
|
|
|
250,000
|
|
|
|
2,565,253
|
|
|
-
|
|
|
1,998,831
|
|
|
-
|
|
|
103,104
|
|
|
|
5,825,018
|
|
|
2016
|
|
|
838,599
|
|
|
|
241,393
|
|
|
|
2,124,995
|
|
|
-
|
|
|
1,258,607
|
|
|
-
|
|
|
70,498
|
|
|
|
4,534,092
|
|
Mark Fioravanti
President & Chief
Financial
Officer
|
|
2018
|
|
|
527,049
|
|
|
|
44,635
|
|
|
|
789,659
|
|
|
-
|
|
|
635,265
|
|
|
-
|
|
|
42,293
|
|
|
|
2,038,901
|
|
|
2017
|
|
|
511,676
|
|
|
|
-
|
|
|
|
792,722
|
|
|
-
|
|
|
937,480
|
|
|
-
|
|
|
39,857
|
|
|
|
2,281,735
|
|
|
2016
|
|
|
494,368
|
|
|
|
-
|
|
|
|
750,025
|
|
|
-
|
|
|
618,169
|
|
|
-
|
|
|
38,773
|
|
|
|
1,901,335
|
|
Bennett Westbrook
EVP & Chief Development Officer
|
|
2018
|
|
|
395,296
|
|
|
|
28,841
|
|
|
|
394,829
|
|
|
-
|
|
|
381,159
|
|
|
-
|
|
|
33,722
|
|
|
|
1,233,847
|
|
|
2017
|
|
|
383,792
|
|
|
|
-
|
|
|
|
396,293
|
|
|
-
|
|
|
562,488
|
|
|
-
|
|
|
31,318
|
|
|
|
1,373,891
|
|
|
2016
|
|
|
351,776
|
|
|
|
-
|
|
|
|
433,905
|
|
|
-
|
|
|
352,363
|
|
|
-
|
|
|
31,124
|
|
|
|
1,169,168
|
|
Patrick Chaffin
EVP, Asset Management
|
|
2018
|
|
|
332,632
|
|
|
|
49,284
|
|
|
|
332,211
|
|
|
-
|
|
|
320,716
|
|
|
-
|
|
|
19,109
|
|
|
|
1,053,952
|
|
|
2017
|
|
|
319,368
|
|
|
|
-
|
|
|
|
333,475
|
|
|
-
|
|
|
468,426
|
|
|
-
|
|
|
19,624
|
|
|
|
1,140,893
|
|
|
2016
|
|
|
295,522
|
|
|
|
-
|
|
|
|
299,992
|
|
|
-
|
|
|
295,628
|
|
|
-
|
|
|
18,644
|
|
|
|
909,786
|
|
Scott Lynn
EVP & General Counsel
|
|
2018
|
|
|
340,132
|
|
|
|
26,868
|
|
|
|
341,837
|
|
|
-
|
|
|
328,132
|
|
|
-
|
|
|
17,405
|
|
|
|
1,054,374
|
|
|
2017
|
|
|
319,368
|
|
|
|
-
|
|
|
|
333,475
|
|
|
-
|
|
|
468,426
|
|
|
-
|
|
|
21,401
|
|
|
|
1,142,670
|
|
|
2016
|
|
|
293,215
|
|
|
|
-
|
|
|
|
299,992
|
|
|
-
|
|
|
293,443
|
|
|
-
|
|
|
19,545
|
|
|
|
906,195
|
|
(1)
|
Amounts shown are not reduced to reflect the NEOs contributions to our 401(k) plan or elections to defer receipt of
salary under our SUDCOMP plan. Amounts shown are the amounts actually paid to the NEO during the year and reflect, to the extent applicable, any changes in the base salary during the year.
|
(2)
|
Represents a discretionary cash bonus award paid to the NEO in recognition of their contributions to the companys
operating and financial performance for the applicable fiscal year as described in the
Compensation Discussion and Analysis
above. Cash incentive
|
|
compensation paid to each NEO pursuant to our short-term cash incentive compensation plan is reflected in the column above entitled
Non-Equity
Incentive
Plan Compensation
.
|
(3)
|
Represents a
non-cash
amount equal to the grant date fair value of the time-based
RSU awards and performance-based RSU awards granted to the NEO, determined in accordance with FASB ASC Topic 718, disregarding for this purpose estimated forfeitures. See Note 7 to our consolidated financial statements for the three years ended
December 31, 2018, included in our
|
45
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
Annual Report on Form
10-K
for the year ended December 31, 2018, filed with the SEC on February 26, 2019, for the assumptions made in determining
grant date fair value. The maximum dollar value of the performance-based RSU awards granted in 2018 (based on the grant-date fair value and assuming vesting at the stretch (150% performance level) are as
|
|
follows: Mr. Reed: $1,873,157; Mr. Fioravanti: $596,810; Mr. Westbrook: $298,404; Mr. Chaffin: $251,084; and Mr. Lynn: $258,321.
|
(4)
|
Represents amounts paid under our short-term cash incentive compensation plan.
|
(5)
|
The table below lists the components of the
All Other Compensation
amount for each NEO listed above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Company
Match to
401(k)
Plan
($)
(a)
|
|
|
Company
Match to
SUDCOMP
Plan
($)
(b)
|
|
|
Group
Term
Life
($)
(c)
|
|
|
Executive
LTD
($)
(d)
|
|
|
Other
($)
(e)
|
|
|
Total
($)
|
|
Colin Reed
|
|
|
11,000
|
|
|
|
34,342
|
|
|
|
25,655
|
|
|
|
3,629
|
|
|
|
14,388
|
|
|
|
89,014
|
|
Mark Fioravanti
|
|
|
11,000
|
|
|
|
17,191
|
|
|
|
7,920
|
|
|
|
3,918
|
|
|
|
2,264
|
|
|
|
42,293
|
|
Bennett Westbrook
|
|
|
11,000
|
|
|
|
12,956
|
|
|
|
4,360
|
|
|
|
3,139
|
|
|
|
2,267
|
|
|
|
33,722
|
|
Patrick Chaffin
|
|
|
-
|
|
|
|
13,320
|
|
|
|
3,129
|
|
|
|
2,660
|
|
|
|
-
|
|
|
|
19,109
|
|
Scott Lynn
|
|
|
11,000
|
|
|
|
-
|
|
|
|
3,105
|
|
|
|
2,733
|
|
|
|
567
|
|
|
|
17,405
|
|
(a)
|
We make matching contributions to the 401(k) plan accounts of the NEOs as described in
Compensation Discussion and
Analysis
above.
|
(b)
|
We make matching contributions to the SUDCOMP accounts of the NEOs as described in
Nonqualified Deferred
Compensation
below. Does not include company matching amounts for SUDCOMP deferrals with respect to 2017 short-term cash incentive plan payments made in 2018.
|
(c)
|
Represents the cost associated with the executive group term life insurance not made available generally to other
employees.
|
(d)
|
Represents the cost associated with the executive long term disability insurance not made available generally to other
employees.
|
(e)
|
Represents, for Mr. Reed, $13,685 in personal usage of aircraft and $703 in physical examination fees. Represents,
for Mr. Fioravanti and Mr. Lynn, personal usage of aircraft. Represents, for Mr. Westbrook, $567 in personal usage of aircraft and $1,700 in physical examination fees. For purposes of reporting the value of personal usage of aircraft
in this table, we use the incremental cost of such personal usage, calculated by estimating the direct variable operating cost of the aircraft on a per mile basis. These costs include the cost of fuel, maintenance, landing and parking fees, crew
travel expenses and supplies. For trips by NEOs that involved mixed personal and business usage, we include the incremental cost of such personal usage (i.e., the excess of the cost of the actual trip over the cost of a hypothetical trip without the
personal usage). For income tax purposes, the amounts included in NEO income are calculated based on the standard industry fare level valuation method. No tax
gross-ups
are provided for this imputed income.
|
46
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
2018 Grants of Plan-Based Awards
The table below shows information about (1) the threshold, target and stretch (i.e., maximum) level of annual cash incentive awards for our NEOs for performance
during 2018, and (2) RSU awards granted to our NEOs during 2018 under our long-term equity incentive compensation plan.
2018 Grants of Plan-Based Awards
Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Future Payouts
Under
Non-Equity
Incentive Plan Awards
(1)
|
|
|
Estimated Future Payouts
Under Equity
Incentive Plan Awards
(2)
|
|
|
All Other
Stock
Awards:
Number of
Shares of
Stock
or
Units
(3)
(#)(i)
|
|
|
Grant Date
Fair Value
of Stock
Awards
(4)
($)(j)
|
|
Name
(a)
|
|
Grant
Date
(b)
|
|
|
Threshold
($)(c)
|
|
|
Target
($)(d)
|
|
|
Maximum
($)(e)
|
|
|
Threshold
(#)(f)
|
|
|
Target
(#)(g)
|
|
|
Maximum
(#)(h)
|
|
Colin Reed
|
|
|
|
|
|
|
693,750
|
|
|
|
1,387,500
|
|
|
|
2,775,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,412
|
|
|
|
16,823
|
|
|
|
25,235
|
|
|
|
-
|
|
|
|
1,248,771
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17,929
|
|
|
|
1,229,750
|
|
Mark Fioravanti
|
|
|
|
|
|
|
329,303
|
|
|
|
658,606
|
|
|
|
1,317,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,680
|
|
|
|
5,360
|
|
|
|
8,040
|
|
|
|
-
|
|
|
|
397,873
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,712
|
|
|
|
391,786
|
|
Bennett Westbrook
|
|
|
|
|
|
|
197,582
|
|
|
|
395,163
|
|
|
|
790,327
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,340
|
|
|
|
2,680
|
|
|
|
4,020
|
|
|
|
-
|
|
|
|
198,936
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,856
|
|
|
|
195,893
|
|
Patrick Chaffin
|
|
|
|
|
|
|
166,250
|
|
|
|
332,500
|
|
|
|
665,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,128
|
|
|
|
2,255
|
|
|
|
3,383
|
|
|
|
-
|
|
|
|
167,389
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,403
|
|
|
|
164,822
|
|
Scott Lynn
|
|
|
|
|
|
|
170,000
|
|
|
|
340,000
|
|
|
|
680,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,160
|
|
|
|
2,320
|
|
|
|
3,480
|
|
|
|
-
|
|
|
|
172,214
|
|
|
|
|
2/21/18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,473
|
|
|
|
169,623
|
|
(1)
|
Represents threshold, target and stretch performance goal achievement payout levels established under our annual
short-term cash incentive plan for 2018 performance. See the
Non-Equity
Incentive Plan Compensation column of the
2018 Summary Compensation Table
above for the amount actually paid to each NEO for 2018
performance.
|
(2)
|
Consists of performance-based RSUs awarded under our long-term equity incentive compensation plan. Each RSU is equivalent
to one share of our common stock on the date of grant. The RSUs are earned for achieving specified calculated TSR targets over a three-year performance period beginning January 1, 2018 and ending December 31, 2020. See
Compensation
Discussion and Analysis2018 Compensation
DecisionsLong-Term Equity Incentive Compensation
for a discussion of the terms of these RSUs.
|
(3)
|
Consists of time-based RSUs awarded under our long-term equity incentive compensation plan. Each RSU is equivalent to one
share of common stock on the date of grant. The RSUs reflected in the chart above vest 25% on each of the first through fourth anniversaries of the grant date.
|
(4)
|
Grant date fair value of the RSU awards to the NEOs is determined in accordance with FASB ASC Topic 718, disregarding for
this purpose estimated forfeitures. See Note 7 to our consolidated financial statements for the three years ended December 31, 2018, included in our Annual Report on Form
10-K
for the year ended
December 31, 2018, filed with the SEC on February 26, 2019, for the assumptions made in determining grant date fair value.
|
47
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Outstanding Equity Awards at 2018 Fiscal Year End
The table below shows information about the outstanding equity awards held by our NEOs as of December 31, 2018.
Outstanding Equity Awards at 2018 Fiscal Year End Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards
|
|
Stock Awards
|
|
|
|
|
|
|
|
|
|
Name
(a)
|
|
Number
of
Securities
Underlying
Unexercised
Options
Exercisable
(#)(b)
|
|
Number
of
Securities
Underlying
Unexercised
Options
Unexercisable
(#)(c)
|
|
Option
Exercise
Price
($)(d)
|
|
Option
Expiration
Date
(e)
|
|
Number of
Shares or
Units of
Stock That
Have
Not
Vested
(1)
(#)(f)
|
|
Market
Value of
Shares or
Units
of
Stock That
Have Not
Vested
(2)
($)(g)
|
|
Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares, Units
or Other
Rights That
Have
Not
Vested
(3)
(#)(h)
|
|
Equity
Incentive Plan
Awards:
Market or
Payout Value
of Unearned
Shares, Units
or Other
Rights That
Have
Not
Vested
(2)
($)(i)
|
Colin Reed
|
|
-
|
|
-
|
|
-
|
|
-
|
|
51,521
|
|
3,435,936
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
71,409
|
|
4,762,266
|
Mark Fioravanti
|
|
-
|
|
-
|
|
-
|
|
-
|
|
22,010
|
|
1,467,847
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
23,800
|
|
1,587,222
|
Bennett Westbrook
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10,356
|
|
690,642
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
11,234
|
|
749,196
|
Patrick Chaffin
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,495
|
|
499,842
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
9,751
|
|
650,294
|
Scott Lynn
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,567
|
|
504,643
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
9,816
|
|
654,629
|
48
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
(1)
|
The following table provides information as of December 31, 2018 with respect to the vesting of each NEOs
outstanding time-based RSUs (including additional RSUs accrued with respect to dividends paid):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grant
Date
|
|
Vesting
Date
|
|
|
Colin
Reed
|
|
|
Mark
Fioravanti
|
|
|
Bennett
Westbrook
|
|
|
Patrick
Chaffin
|
|
|
Scott
Lynn
|
|
2/24/2015
|
|
|
3/15/2019
|
|
|
|
5,277
|
|
|
|
1,872
|
|
|
|
835
|
|
|
|
1,285
|
|
|
|
1,285
|
|
3/1/2015
|
|
|
3/15/2019
|
|
|
|
-
|
|
|
|
5,132
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
2/24/2016
|
|
|
3/15/2019
|
|
|
|
6,211
|
|
|
|
2,191
|
|
|
|
979
|
|
|
|
873
|
|
|
|
873
|
|
2/22/2017
|
|
|
3/15/2019
|
|
|
|
5,111
|
|
|
|
1,579
|
|
|
|
789
|
|
|
|
663
|
|
|
|
663
|
|
2/21/2018
|
|
|
3/15/2019
|
|
|
|
4,623
|
|
|
|
1,473
|
|
|
|
736
|
|
|
|
620
|
|
|
|
638
|
|
6/27/2016
|
|
|
6/27/2019
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,255
|
|
|
|
-
|
|
|
|
-
|
|
2/24/2016
|
|
|
3/15/2020
|
|
|
|
6,210
|
|
|
|
2,190
|
|
|
|
978
|
|
|
|
872
|
|
|
|
872
|
|
2/22/2017
|
|
|
3/15/2020
|
|
|
|
5,111
|
|
|
|
1,578
|
|
|
|
788
|
|
|
|
663
|
|
|
|
663
|
|
2/21/2018
|
|
|
3/15/2020
|
|
|
|
4,623
|
|
|
|
1,473
|
|
|
|
736
|
|
|
|
619
|
|
|
|
637
|
|
2/22/2017
|
|
|
3/15/2021
|
|
|
|
5,111
|
|
|
|
1,578
|
|
|
|
788
|
|
|
|
662
|
|
|
|
662
|
|
2/21/2018
|
|
|
3/15/2021
|
|
|
|
4,622
|
|
|
|
1,472
|
|
|
|
736
|
|
|
|
619
|
|
|
|
637
|
|
2/21/2018
|
|
|
3/15/2022
|
|
|
|
4,622
|
|
|
|
1,472
|
|
|
|
736
|
|
|
|
619
|
|
|
|
637
|
|
(2)
|
Market value was determined based on the December 31, 2018 NYSE closing price of our common stock ($66.69).
|
(3)
|
The following table provides information with respect to the vesting of the performance-based RSUs granted to each NEO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grant
Date
|
|
Vesting
Date
|
|
|
Colin
Reed
|
|
Mark
Fioravanti
|
|
|
Bennett
Westbrook
|
|
|
Patrick
Chaffin
|
|
|
Scott
Lynn
|
|
2/24/2016
(a)
|
|
|
3/15/2019
|
|
|
35,775
|
|
|
12,627
|
|
|
|
5,648
|
|
|
|
5,051
|
|
|
|
5,051
|
|
2/22/2017
(b)
|
|
|
3/15/2020
|
|
|
18,811
|
|
|
5,813
|
|
|
|
2,906
|
|
|
|
2,445
|
|
|
|
2,445
|
|
2/21/2018
(b)
|
|
|
3/15/2021
|
|
|
16,823
|
|
|
5,360
|
|
|
|
2,680
|
|
|
|
2,255
|
|
|
|
2,320
|
|
(a)
|
The number of shares listed above with respect to the February 24, 2016 performance-based RSU grant assume vesting at
the stretch (150%) performance level. The RSUs ultimately vested at this payout level based on our achievement of TSR over the applicable performance period, as determined by the Human Resources Committee. See
Compensation Discussion and
Analysis2018 Compensation DecisionsLong-Term Equity Incentive Compensation
for a discussion of the terms of these RSUs.
|
(b)
|
The number of RSUs listed above with respect to the February 22, 2017 grant assume vesting at the target (100%)
performance level, and the number of RSUs listed above with respect to the February 21, 2018 grant
|
|
assume vesting at the target (100%) performance level, in each case taking into account performance to date with respect to the performance metrics under the award agreement. Each RSU is
equivalent to one share of our common stock on the date of grant. The RSUs are earned for achieving specified calculated TSR targets over a three-year performance period (a period from January 1, 2017 to December 31, 2019 for the
February 22, 2017 awards; and a period from January 1, 2018 to December 31, 2020 for the February 21, 2018 awards). See
Compensation Discussion and Analysis2018 Compensation DecisionsLong-Term Equity Incentive
Compensation
for a discussion of the terms of these RSUs.
|
49
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
2018 Option Exercises and Stock Vested
The table below shows information about the exercise of stock options by the NEOs and the vesting of the NEOs RSU awards in 2018.
2018 Option Exercises and Stock Vested Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards
|
|
Stock Awards
|
|
Name
(a)
|
|
Number of
Shares
Acquired
Upon
Exercise
(#)(b)
|
|
Value Realized
Upon
Exercise
($)(c)
|
|
Number
of Shares
Acquired
on
Vesting
(#)(d)
|
|
|
Value
Realized
on
Vesting
(1)
($)(e)
|
|
Colin Reed
|
|
-
|
|
-
|
|
|
49,359
|
|
|
|
3,737,881
|
|
Mark Fioravanti
|
|
-
|
|
-
|
|
|
22,792
|
|
|
|
1,727,389
|
|
Bennett Westbrook
|
|
-
|
|
-
|
|
|
7,866
|
|
|
|
595,673
|
|
Patrick Chaffin
|
|
-
|
|
-
|
|
|
6,665
|
|
|
|
503,965
|
|
Scott Lynn
|
|
-
|
|
-
|
|
|
6,524
|
|
|
|
493,191
|
|
(1)
|
Equal to the number of shares of common stock issued upon vesting of RSUs multiplied by the closing market price of our
common stock on the NYSE on the day prior to the vesting date.
|
50
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Other Compensation Information
Pension Benefits
No NEOs participate in our frozen
defined benefit plan.
Nonqualified Deferred Compensation
Supplemental Deferred Compensation
Our supplemental deferred compensation plan, or SUDCOMP, is a nonqualified plan that allows eligible participants,
including NEOs (whose ability to contribute amounts to our 401(k) plan may be limited by IRS regulations), to defer up to 40% of their base salary, less amounts deferred under our 401(k) plan, and up to 100% of their short-term cash incentive
compensation. We contribute one dollar for each dollar contributed by the participant, up to four percent of the participants contributions (less matching amounts under our 401(k) plan).
Participants elect hypothetical investment options mirroring the funds in our 401(k) plan, with the exception of company stock. Participants can change their investment
selections on a daily basis in the same manner as the 401(k) plan. Deferred amounts are credited with earnings or losses based on the rate of return of the investment options selected by the participant. When participants elect to defer amounts into
the SUDCOMP, they also select when the amounts will be distributed to them. Distributions may either be made in a specific year (whether or not employment has then ended) or at a time that begins at or after termination of employment. Distributions
can be made in a lump sum or up to 15 annual installments. However, after a participants employment ends, his or her account balance is automatically distributed in a lump sum (without regard to his or her election) if the balance is $10,000
or less.
Supplemental Executive Retirement Plan
When we recruited
Mr. Reed to join us in 2001, we agreed to establish a supplemental executive retirement plan, or SERP, for Mr. Reed with an initial retirement benefit of $2.5 million. We believed at the time (and continue to believe) that the SERP
was a material factor in Mr. Reeds agreement to give up benefits at his former employer and to begin working for us. We believe that the SERP benefit was
necessary to attract and retain a highly qualified executive such as Mr. Reed. Mr. Reeds April 23, 2001 employment agreement with us established the SERP, which fully vested
on April 23, 2005.
In 2004, as part of an amendment to Mr. Reeds employment agreement extending his employment term, we agreed to adjust the initial
SERP benefit for hypothetical investment earnings or losses, based on the performance of one or more mutual funds selected by Mr. Reed. At that time, we also agreed to pay Mr. Reed an additional retirement benefit under the SERP of
$1.0 million, as adjusted beginning April 23, 2005 for hypothetical investment earnings or losses, based on the performance of one or more mutual funds selected by Mr. Reed. This additional SERP benefit fully vested on May 1,
2010. Mr. Reed is entitled to receive all of his SERP benefit upon any termination of employment. Mr. Reed has elected to receive his SERP benefits, as adjusted, in the form of one lump sum payment.
On February 4, 2008, we entered into a new employment agreement with Mr. Reed which did not modify the terms of the SERP. On December 18, 2008, we amended
Mr. Reeds employment agreement to allow him to make an irrevocable election to invest his SERP benefit in our common stock. We established an independent rabbi trust and transferred cash in an amount equal to the then-current balance of
the SERP benefit, and the independent trustee of the rabbi trust purchased shares of our common stock in the open market.
Mr. Reed is now only entitled to a
distribution of our stock and any accrued cash dividends held by the rabbi trust in satisfaction of his SERP benefit. We believe that the ownership of shares of common stock by the rabbi trust and the distribution of those shares and any accrued
cash dividends to Mr. Reed in satisfaction of his SERP benefit meets requirements necessary so that we will not recognize any increase
51
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
or decrease in expense as a result of subsequent changes in the value of our common stock. The terms of the rabbi trust provide that, to the extent that the
shares owned by the rabbi trust are entitled to vote on any matter, the rabbi trustee will be entitled to vote such shares.
2018 Nonqualified
Deferred Compensation Table
The table below shows each NEOs salary deferrals, company matching obligations, earnings and account balances in the SUDCOMP
(and, in the case of Mr. Reed, his SERP), as of December 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
(a)
|
|
Plan
(b)
|
|
|
Executive
Contributions
in Last FY
(1)
($)(c)
|
|
|
Registrant
Contributions
in Last FY
($)(d)
|
|
|
Aggregate
Earnings
(Losses) in
Last FY
(2)
($)(e)
|
|
|
Aggregate
Withdrawals/
Distributions
in Last FY
($)(f)
|
|
Aggregate
Balance at
Last FY
(3)
($)(g)
|
|
Colin Reed
|
|
|
SUDCOMP
|
|
|
|
291,018
|
|
|
|
34,342
|
|
|
|
(729,038
|
)
|
|
-
|
|
|
20,078,173
|
|
Colin Reed
|
|
|
SERP
|
(4)
|
|
|
-
|
|
|
|
-
|
|
|
|
(357,422
|
)
(5)
|
|
-
|
|
|
39,513,020
|
(6)
|
Mark Fioravanti
|
|
|
SUDCOMP
|
|
|
|
21,171
|
|
|
|
17,191
|
|
|
|
(130,966
|
)
|
|
-
|
|
|
1,175,892
|
|
Bennett Westbrook
|
|
|
SUDCOMP
|
|
|
|
39,609
|
|
|
|
12,956
|
|
|
|
(83,186
|
)
|
|
-
|
|
|
908,443
|
|
Patrick Chaffin
|
|
|
SUDCOMP
|
|
|
|
16,650
|
|
|
|
13,320
|
|
|
|
(19,927
|
)
|
|
(1,845)
|
|
|
217,571
|
|
Scott Lynn
|
|
|
SUDCOMP
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(20,745
|
)
|
|
-
|
|
|
226,949
|
|
(1)
|
Amounts in this column are reported as compensation in the
2018 Summary Compensation Table
above. Amounts in this
column do not include deferrals of cash incentive compensation amounts with respect to the 2017 fiscal year paid in 2018 (in the case of Mr. Fioravanti, $37,499) or company matching amounts with respect to such deferral (in the case of
Mr. Fioravanti, $30,320).
|
(2)
|
None of the amounts in this column are included as compensation in the
2018
Summary Compensation Table
above
because above-market or preferential earnings are not available.
|
(3)
|
Of the amounts listed in this column with respect to the SUDCOMP, the following amounts have been reported as compensation
in the
2018
Summary Compensation Table
above or previous years (or would have been reported if the NEO had been included in our proxy statement in those years): Mr. Reed: $8,803,317; Mr. Fioravanti: $503,490;
Mr. Westbrook: $419,633; Mr. Chaffin: $89,411; and Mr. Lynn: $131,180. With respect to Mr. Reeds SERP, no amounts have been reported as compensation in the
Summary Compensation Table
for 2018 or previous years.
|
(4)
|
We have summarized the SERP benefit using the disclosure format prescribed by the SEC for
|
|
nonqualified deferred compensation (under Item 402(i) of SEC Regulation
S-K)
rather than pension benefits due to the fact that this SERP benefit more
closely resembles a defined contribution award than a defined benefit award. This determination was based on the fact that the value of the SERP benefit in 2018 was based solely on the amounts previously contributed.
|
(5)
|
Represents the change in market value of our common stock from December 31, 2017 to December 31, 2018, plus the
reinvestment of cash dividends received on the shares of common stock held in the SERP. This amount has not been reported as compensation in the
Summary Compensation Table
for 2018 or previous years since above-market or preferential returns
are not available with respect to the SERP.
|
(6)
|
Represents the value of both the initial SERP benefit and the additional SERP benefit as of December 31, 2018, which
is calculated by multiplying the 592,476 shares of our common stock held by the rabbi trust on such date by the December 31, 2018 NYSE closing price of our common stock ($66.69), plus accrued cash.
|
52
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Potential Payments on Termination or Change of Control
Employment and Severance Agreements
Mr. Reed, Mr. Fioravanti and Mr. Westbrook each have employment agreements with us, originally entered into in February 2008, with an initial
two-year
term and automatically renewing
two-year
terms (unless either party provides notice of
non-renewal).
Mr. Reeds
employment agreement was amended in December 2008 and September 2010. Mr. Fioravantis employment agreement was amended in February 2010 and September 2010. Mr. Westbrooks employment agreement was amended in September 2010. In
November 2012, Mr. Reeds, Mr. Fioravantis and Mr. Westbrooks employment agreements were amended in connection with our REIT restructuring. Mr. Fioravantis employment agreement was amended in March 2015.
Mr. Westbrooks employment agreement was amended in July 2016. Mr. Reeds, Mr. Fioravantis and Mr. Westbrooks employment agreements, together with each of their equity incentive award agreements and the
terms of our incentive and other benefit plans, provide for cash payments and other benefits in connection with their termination of employment in various circumstances, including in the event of a Change of Control (as
defined below). Payment of these amounts generally is conditioned upon compliance with the other provisions of the
agreement, which include confidentiality obligations and nonsolicitation and noncompetition provisions.
Mr. Chaffin and Mr. Lynn each have restated
severance agreements with us, entered into in February 2018 (replacing severance agreements entered into in October 2010 and February 2013, respectively), with a
one-year
term and automatic renewals of one
year following the initial term (unless either party provides notice of
non-renewal).
The severance agreements provide for cash payments and other benefits only in connection with Mr. Chaffins and
Mr. Lynns termination of employment in the event of a Change of Control. Payment of these amounts generally is conditioned upon compliance with the other provisions of the severance agreement, which include confidentiality obligations. In
addition, Mr. Chaffins and Mr. Lynns equity incentive award agreements, and the terms of our incentive and other benefit plans, provide for other benefits in connection with their termination of employment in various
circumstances, including in the event of a Change of Control.
53
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Description of Potential Payments on Termination or Change of Control
The discussion below outlines our obligations to our NEOs upon a termination or Change of Control. Except as otherwise noted, the discussion applies to each NEO.
Payments Made on Any Termination of Employment
Regardless of the manner in
which an NEOs employment with us is terminated, the NEO would be entitled to receive amounts which have been earned by the NEO pursuant to the terms of our incentive and other benefit
plans
(1)
.
Payments Made on Termination With Cause or Resignation Without Good Reason
Mr. Reeds, Mr. Fioravantis and Mr. Westbrooks employment agreements each provide that if the executive is terminated for Cause
(2)
or if he resigned without Good Reason
(3)
he would not be entitled to receive any payments (other than as listed under
Payments Made on Any
Termination of Employment
).
(1)
|
These amounts consist of: (1) accrued but unpaid base salary through the date of termination; (2) any unpaid portion of
any annual short-term cash incentive compensation bonus for prior calendar years; (3) accrued but unpaid vacation pay, unreimbursed employment-related expenses and other benefits owed to the NEO under our general employee benefit plans or policies;
(4) all vested 401(k) plan and SUDCOMP account balances; and (5) in the case of Mr. Reed, his SERP benefit.
|
(2)
|
Under Mr. Reeds, Mr. Fioravantis and Mr. Westbrooks employment agreements, the term Cause is
defined as: fraud, self-dealing, embezzlement or dishonesty in the course of employment, or any conviction of a crime involving moral turpitude; a failure to comply with any valid or legal company directive, or any material uncured breach of
obligations under the employment agreement; or the executives failure to adequately perform his responsibilities, as demonstrated by objective and verifiable evidence showing that the business operations under his control have been materially
harmed as a result of gross negligence or willful misconduct.
|
(3)
|
Under Mr. Reeds, Mr. Fioravantis and Mr. Westbrooks employment agreements, the term Good
Reason is defined as: any adverse change in the executives position or title (whether or not approved by our Board), any assignment over the executives reasonable objection to any duties materially inconsistent with his current
status or a substantial adverse alteration in the nature of his responsibilities; a reduction in the executives annual base salary; a failure to pay any portion of the executives current compensation, or a failure to continue in effect
any material compensatory plan (or equivalent) in which the executive may participate; permanent relocation of the executives principal place of employment to a location other than our corporate headquarters; a failure to provide, or a
material reduction of, any insurance, retirement savings plan or other employee benefits package substantially similar to those enjoyed by other senior executives in which the executive is entitled to participate; or a material uncured breach of the
companys obligations under the executives employment agreement (or the companys failure to renew it).
|
54
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Payments Made on Death or Disability
Mr. Reeds, Mr. Fioravantis and Mr. Westbrooks employment agreements, together with their equity incentive award agreements and the terms
of our incentive and other benefit plans, provide for the following payments and other benefits (in addition to payments under our disability or life insurance plans) if the executive dies or becomes permanently disabled (defined as a
physical or mental incapacity rendering him unable to perform job duties for 90 consecutive days or for a total of 180 days in any 12 month period):
|
|
|
all amounts under
Payments Made on Any Termination of Employment
above;
|
|
|
|
a pro rata portion of his annual short-term cash incentive compensation in the year of termination;
|
|
|
|
the immediate vesting of all time-based RSUs;
|
|
|
|
|
for all performance-based RSUs, a pro rata (based on length of service during the performance period) portion of the awards actually vesting to the extent of satisfaction of the applicable performance criteria;
|
|
|
|
|
the accelerated vesting of all outstanding stock option awards (with an exercise period ending on the option expiration date); and
|
|
|
|
|
in the case of Mr. Reed, continuation of health care coverage at employee rates for Mr. Reed and his spouse until the earlier of their election to terminate coverage (or their
non-payment
of premiums), their death or until we stop providing health care coverage to our employees.
|
|
In the event of Mr. Chaffins or Mr. Lynns death or permanent disability, the executive would be
entitled, under the terms of his equity incentive award agreements and the terms of our incentive and other benefit plans, to the following (in addition to payments under our disability or life insurance plans):
|
|
all amounts under
Payments Made on Any Termination of Employment
above;
|
|
|
the immediate vesting of all time-based RSUs;
|
|
|
for all performance-based RSUs, a pro rata (based on length of service during the performance period) portion of the awards actually vesting to the extent of satisfaction of the applicable performance criteria; and
|
|
|
the accelerated vesting of all outstanding stock option awards (with an exercise period ending on the option expiration date).
|
Payments Made on Termination Without Cause or Resignation for Good Reason (Other Than Following a Change of Control)
Mr. Reeds, Mr. Fioravantis and Mr. Westbrooks employment agreements, together with their equity incentive award agreements and the terms
of our incentive and other benefit plans, provide for the following payments and other benefits if the executive is terminated without Cause (or resigned for Good Reason), other than following a Change of Control:
|
|
|
all amounts under
Payments Made on Any Termination of Employment
above;
|
|
|
|
the following severance payment:
|
|
|
|
Mr. Reed
|
|
Mr. Fioravanti &
Mr. Westbrook
|
2x base salary plus 2x last years annual short-term cash incentive
compensation
|
|
1x base salary plus 1x last years annual short-term cash incentive compensation
|
|
|
|
in the case of Mr. Fioravanti and Mr. Westbrook, a pro rata portion of his annual cash bonus in the year of termination;
|
|
|
|
immediate vesting of RSUs as follows (in the case of performance-based RSUs, to the extent of the satisfaction of applicable performance criteria):
|
|
|
|
Mr. Reed
|
|
Mr. Fioravanti &
Mr. Westbrook
|
all awards scheduled to vest within 2 years of termination
|
|
all awards scheduled to vest within 1 year of termination
|
55
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
the accelerated vesting of the following stock option awards:
|
|
|
|
Mr. Reed
|
|
Mr. Fioravanti &
Mr. Westbrook
|
all unvested stock options scheduled to vest within 2 years of
termination
|
|
all unvested stock options scheduled to vest within 1 year of termination
|
|
Mr. Reed would have 2 years from termination to exercise the awards, while Mr. Fioravanti and Mr. Westbrook would
have 1 year from termination to exercise the awards; and
|
|
|
in the case of Mr. Reed, continuation of health care coverage at employee rates for Mr. Reed and his spouse until the earlier of their election to terminate coverage (or their
non-payment
of premiums), their death or until we stop providing health care coverage to our employees.
|
Payments Made on Termination Without Cause or Resignation for Good Reason Following a Change of Control
Mr. Reeds, Mr. Fioravantis and Mr. Westbrooks employment agreements (and Mr. Chaffins and Mr. Lynns severance
agreements), together with their equity incentive award agreements and the terms of our incentive and other benefit plans, provide for payments and other benefits in the event of a termination in a designated period
(3)
following a Change of Control. With respect to the employment agreements with Mr. Reed, Mr. Fioravanti and Mr. Westbrook (and the severance agreements with
Mr. Chaffin and Mr. Lynn), a Change of Control is deemed to occur if:
|
|
|
any person, other than us, our benefit plan or our designated affiliates, becomes the beneficial owner of 35% or more of our outstanding voting stock;
|
|
|
|
a majority of the incumbent members of our Board cease to serve on our Board without the consent of the incumbent Board;
|
|
|
|
following a merger, tender or exchange offer, other business combination or contested election, the holders of our stock prior to the transaction hold less than a majority of the combined voting power of the combined
entity; or
|
|
|
|
we sell all or substantially all of our assets.
|
If any of our NEOs were terminated without Cause
(4)
(or resigned for
Good Reason
(5)
) following a Change of Control within the designated period, the executive would be entitled to receive:
|
|
|
all amounts under
Payments Made on Any Termination of Employment
above;
|
|
|
|
the following severance payment:
|
|
|
|
|
|
Mr. Reed, Mr. Fioravanti
& Mr. Westbrook
|
|
Mr. Chaffin &
Mr. Lynn
|
|
|
3x base salary plus 3x highest short-term cash incentive compensation in
last 3 years
|
|
2x base salary plus 2x last years annual short-term cash incentive compensation
|
|
|
|
immediate vesting of all RSUs, with performance-based RSUs vesting at the target level;
|
|
|
|
the accelerated vesting of all outstanding stock option awards. Each NEO would have 2 years from termination to exercise the awards;
|
|
|
|
continuation of health care coverage at employee rates: for Mr. Reed and his spouse, until the earlier of their election to terminate such coverage (or
non-payment
of
premiums), their death or until we stop providing health care coverage to our employees; for Mr. Fioravanti and Mr. Westbrook, for 3 years from termination; and for Mr. Chaffin and Mr. Lynn, for 2 years from the Change of
Control; and
|
|
|
|
in the case of Mr. Fioravanti and Mr. Westbrook, executive physical examination fees for 3 years.
|
In
addition, under the terms of our omnibus incentive plans and the award agreements issued thereunder, in the event of a Change of Control
(6)
, irrespective of any termination of employment, all
outstanding RSU awards held by our NEOs and other employees would vest immediately, with performance-based RSUs vesting at target level, and all outstanding stock option awards held by our NEOs and other employees would automatically accelerate and
become exercisable.
(3)
|
For Mr. Reed, Mr. Fioravanti and Mr. Westbrook, this period is one year. For Mr. Chaffin and
Mr. Lynn, this period is two years.
|
56
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
(4)
|
The severance agreements for Mr. Chaffin and Mr. Lynn provide that the executive may be terminated for Cause if
he was terminated for gross misconduct.
|
(5)
|
The severance agreements for Mr. Chaffin and Mr. Lynn provide that the executive may terminate his employment
for Good Reason following a Change of Control if: his salary is reduced, there is a material reduction in his benefits or there is a material change in his status, working conditions or management responsibilities; or he is required to relocate his
residence more than 100 miles from our corporate headquarters.
|
(6)
|
Under our 2016 and 2006 omnibus incentive plans, a Change of Control is deemed to occur if: (i) any
person (subject to certain exceptions) becomes the beneficial owner of 35% or more of the combined voting power of our then outstanding voting securities;
(ii) two-thirds
of the incumbent members of our
Board cease to serve on our Board without the consent of the incumbent Board; (iii) following the consummation of a merger, consolidation or reorganization, (a) the holders of our voting securities immediately prior to the transaction hold
less than a majority of the combined voting power of the resulting entity in substantially the same proportion as their ownership prior to such merger, consolidation or reorganization, (b) the individuals who were members of the incumbent Board
immediately prior to the execution of the agreement providing for such transaction constitute less than
two-thirds
of the members of the board of directors of the resulting entity, and (c) no person
(subject to certain exceptions) has beneficial ownership of 35% or more of the resulting entitys then outstanding voting securities; (iv) we completely liquidate or dissolve the company; or (v) we sell substantially all of our assets
to any person, other than a transfer to a subsidiary of the company.
|
57
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Summary of Potential Payments on Termination or Change of Control
The following tables estimate the value of the potential payments on termination or change of control of the company for the NEOs as of December 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and Payments
Upon Termination
|
|
Termination
for Cause or
Resignation
Without
Good
Reason
($)
|
|
|
Retirement
($)
|
|
|
Death or
Disability
($)
|
|
|
Termination
Without
Cause or
Resignation
for
Good
Reason
($)
|
|
|
Termination
Without Cause
or
Resignation
for Good
Reason Upon
a Change of
Control
(10)
($)
|
|
Cash Severance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Reed
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,847,662
|
(1)
|
|
|
8,771,493
|
(2)
|
Mr. Fioravanti
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,467,930
|
(3)
|
|
|
4,403,790
|
(2)
|
Mr. Westbrook
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
960,326
|
(3)
|
|
|
2,880,978
|
(2)
|
Mr. Chaffin
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,606,352
|
(1)
|
Mr. Lynn
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,625,852
|
(1)
|
Non-Equity
Incentive Compensation
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Reed
|
|
|
-
|
|
|
|
-
|
|
|
|
1,500,000
|
|
|
|
-
|
|
|
|
-
|
|
Mr. Fioravanti
|
|
|
-
|
|
|
|
-
|
|
|
|
679,900
|
|
|
|
679,900
|
|
|
|
-
|
|
Mr. Westbrook
|
|
|
-
|
|
|
|
-
|
|
|
|
410,000
|
|
|
|
410,000
|
|
|
|
-
|
|
Mr. Chaffin
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Mr. Lynn
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Performance-Based RSU Accelerated Vesting
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Reed
|
|
|
-
|
|
|
|
-
|
|
|
|
2,800,847
|
|
|
|
2,845,062
|
|
|
|
3,966,988
|
|
Mr. Fioravanti
|
|
|
-
|
|
|
|
-
|
|
|
|
938,996
|
|
|
|
561,396
|
|
|
|
1,306,524
|
|
Mr. Westbrook
|
|
|
-
|
|
|
|
-
|
|
|
|
439,866
|
|
|
|
251,088
|
|
|
|
623,618
|
|
Mr. Chaffin
|
|
|
-
|
|
|
|
-
|
|
|
|
383,379
|
|
|
|
-
|
|
|
|
537,988
|
|
Mr. Lynn
|
|
|
-
|
|
|
|
-
|
|
|
|
384,824
|
|
|
|
-
|
|
|
|
542,323
|
|
Time-Based RSU Accelerated Vesting
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Reed
|
|
|
-
|
|
|
|
-
|
|
|
|
3,435,936
|
|
|
|
2,478,534
|
|
|
|
3,435,936
|
|
Mr. Fioravanti
|
|
|
-
|
|
|
|
-
|
|
|
|
1,467,847
|
|
|
|
816,686
|
|
|
|
1,467,847
|
|
Mr. Westbrook
|
|
|
-
|
|
|
|
-
|
|
|
|
690,642
|
|
|
|
373,031
|
|
|
|
690,642
|
|
Mr. Chaffin
|
|
|
-
|
|
|
|
-
|
|
|
|
499,842
|
|
|
|
-
|
|
|
|
499,842
|
|
Mr. Lynn
|
|
|
-
|
|
|
|
-
|
|
|
|
501,509
|
|
|
|
-
|
|
|
|
501,509
|
|
Other Benefits and Perquisites
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Reed
|
|
|
-
|
|
|
|
-
|
|
|
|
163,485
|
(7)
|
|
|
163,485
|
(7)
|
|
|
163,485
|
(7)
|
Mr. Fioravanti
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
35,208
|
(8)
|
Mr. Westbrook
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
54,150
|
(8)
|
Mr. Chaffin
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30,100
|
(9)
|
Mr. Lynn
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30,100
|
(9)
|
58
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
(1)
|
Amount equal to two times base salary in effect at December 31, 2018, plus two times short-term cash incentive
compensation for the 2017 fiscal year.
|
(2)
|
Amount equal to three times base salary in effect at December 31, 2018, plus three times short-term cash incentive
compensation for the 2017 fiscal year (the highest short-term cash incentive compensation for the last three fiscal years).
|
(3)
|
Amount equal to one times base salary in effect at December 31, 2018, plus one times short-term cash incentive
compensation for the 2017 fiscal year.
|
(4)
|
Reflects the short-term cash incentive compensation and discretionary bonus for the 2018 fiscal year.
|
(5)
|
Calculated by multiplying the number of shares of common stock to be issued on the vesting of such award(s) by the
December 31, 2018 NYSE closing price of our common stock ($66.69), assuming vesting at the target (100%) performance level. The 2016 performance-based RSUs ultimately vested in March 2019 at the 150% payout level based on our achievement of TSR
over the applicable performance period, as determined by the Human Resources Committee. The number of shares of common stock to be issued upon vesting of the remaining performance-based RSUs will ultimately be based upon the actual achievement of
the performance goals stated in the applicable award agreement.
|
(6)
|
Calculated by multiplying the number of shares of common stock to be issued on the vesting of such award(s) by the
December 31, 2018 NYSE closing price of our common stock ($66.69).
|
(7)
|
Represents health insurance coverage for Mr. Reed and his spouse for a period of 15 years (assuming a life expectancy
of 86 years for Mr. Reed and assuming an annual cost of $10,899, which was the cost of such benefit in 2018).
|
(8)
|
Represents health insurance coverage and physical examination fees for a period of three years.
|
(9)
|
Represents health insurance coverage for a period of two years.
|
(10)
|
The awards underlying the amounts set forth under the headings Performance-Based RSU Accelerated Vesting and
Time-Based RSU Accelerated Vesting will automatically vest, with performance-based RSU awards vesting at target level, upon a Change of Control (as defined in the applicable omnibus incentive plan and the award agreements issued
thereunder), irrespective of whether or not the NEO is terminated in connection with a Change of Control.
|
59
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Director Compensation
Cash Compensation
Effective as of the 2018 annual meeting of stockholders, each
non-employee
director receives the following annual cash
compensation:
|
|
|
|
|
Compensation
Item
|
|
Amount
($)
|
|
Annual Retainer (Independent Directors)
|
|
|
65,000
|
|
Lead Independent Director
|
|
|
30,000
|
|
Audit Committee Chairman
|
|
|
25,000
|
|
Human Resources Committee Chairman
|
|
|
20,000
|
|
Nominating and CG Committee Chairman
|
|
|
15,000
|
|
Audit Committee Members
|
|
|
10,000
|
|
Human Resources Committee Members
|
|
|
10,000
|
|
Nominating and CG Committee Members
|
|
|
7,500
|
|
The amounts represent an increase from the amounts previously paid to
non-employee
directors as
follows: (1) a $5,000 increase in the annual retainer paid to all
non-employee
directors; and (2) a $2,500 increase in the annual retainer paid to each member of the Human Resources Committee. The
level of annual cash compensation paid to
non-employee
directors, which was recommended by the Human Resources Committee and approved by the full Board of Directors, was determined based on, among other
factors, peer group and general market information provided to the Human Resources Committee by Aon Hewitt.
Directors may elect to defer their cash compensation in
the form of RSUs, the receipt of which will be deferred until either a specified date or the directors retirement or resignation from the Board. In 2018, two directors elected to defer cash compensation pursuant to this deferred compensation
plan.
All directors are reimbursed for expenses incurred in attending meetings. Mr. Reed does not receive cash compensation for his service as a director.
Equity-Based Compensation
Effective as of the 2018 annual meeting of stockholders, each
non-employee
director receives, as of the date of the first board
meeting following the annual meeting of stockholders, an annual grant of RSUs having a fixed dollar value of $95,000 (based upon the fair market value of our common stock on the grant date). This represents a $15,000 increase from the fixed dollar
value in effect prior to the 2018 annual meeting of stockholders. The level of annual equity-based compensation paid to
non-employee
directors, which was recommended by the Human Resources Committee and
approved by the full Board of Directors, was determined based on, among other factors, peer group and general market information provided to the Human Resources Committee by Aon Hewitt.
The RSUs vest fully on the first anniversary of the date of grant and are settled in shares of our common stock on such date, unless receipt of such shares is deferred
by the director. Until shares of common stock are issued in conversion of the RSUs, the director does not have any rights as a stockholder with respect to such RSUs, other than the right to receive additional RSUs equal to any dividends paid on our
common stock.
Director Stock Ownership Guidelines
We have adopted stock ownership guidelines for our
non-employee
directors, which require directors to hold a minimum of 6,000
shares of our common stock, with a five-year time period to comply. Shares of common stock issuable upon the vesting of RSUs are credited toward this requirement. If a
non-employee
director is not currently in
compliance with these guidelines (regardless of the applicable grace period for compliance) the
non-employee
director must retain 50% of the net shares (after satisfying any tax obligations and any required
payments upon exercise) received upon vesting of RSUs or the exercise of stock options.
60
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
As of January 31, 2019 (the annual compliance date), after taking into account the applicable grace period, all of our
non-employee
directors then
serving in office met this requirement, as follows:
|
|
|
|
|
|
|
|
|
|
|
Required
Ownership
(#)
|
|
|
Shares
Owned
(1)
(#)
|
|
Michael Bender
|
|
|
6,000
|
|
|
|
25,314
|
|
Rachna Bhasin
|
|
|
6,000
|
|
|
|
4,209
|
|
Alvin Bowles
|
|
|
6,000
|
|
|
|
1,249
|
|
Ellen Levine
|
|
|
6,000
|
|
|
|
28,320
|
|
Fazal Merchant
|
|
|
6,000
|
|
|
|
2,213
|
|
Patrick Moore
|
|
|
6,000
|
|
|
|
8,750
|
|
Robert Prather
|
|
|
6,000
|
|
|
|
28,052
|
|
Michael Roth
|
|
|
6,000
|
|
|
|
37,431
|
|
(1)
|
Includes the following shares represented by RSUs held by each director: Mr. Bender: 2,953; Ms. Bhasin 1,249;
Mr. Bowles: 1,249; Ms. Levine: 1,249; Mr. Merchant: 2,213; Mr. Moore: 8,750; Mr. Prather: 24,092; and Mr. Roth: 1,249.
|
2018
Non-Employee
Director Compensation Table
The following table summarizes the annual compensation for 2018 for our
non-employee
directors who served as directors in 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
(a)
|
|
Fees
Earned or
Paid in
Cash
(1)
($)(b)
|
|
|
Stock
Awards
(2)
($)(c)
|
|
|
Option
Awards
($)(d)
|
|
Non-Equity
Incentive
Plan
Compen-
sation
($)(e)
|
|
Change in
Pension
Value
and
Nonqualified
Deferred
Compen-
sation
Earnings
(3)
($)(f)
|
|
All Other
Compen-
sation
($)(g)
|
|
Total
($)(h)
|
|
Michael Bender
|
|
|
90,000
|
|
|
|
94,985
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
184,985
|
|
Rachna Bhasin
|
|
|
72,500
|
|
|
|
94,985
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
167,485
|
|
Alvin Bowles
|
|
|
72,500
|
|
|
|
94,985
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
167,485
|
|
Ellen Levine
|
|
|
78,750
|
|
|
|
94,985
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
173,735
|
|
Fazal Merchant
|
|
|
72,500
|
|
|
|
94,985
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
167,485
|
|
Patrick Moore
|
|
|
91,250
|
|
|
|
94,985
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
186,235
|
|
Robert Prather
|
|
|
81,250
|
|
|
|
94,985
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
176,235
|
|
Michael Roth
|
|
|
116,250
|
|
|
|
94,985
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
211,235
|
|
(1)
|
The amount listed above represents cash compensation paid to the director or amounts which have been deferred by the
director, as described above. Compensation for service on the Board and its committees is payable quarterly in arrears. Due to the timing of payments and changes in committee assignments in 2018, these amounts may not correspond to the amounts
listed above under
Cash Compensation
. Ms. Pantoya did not become a director until February 22, 2019 and thus did not receive compensation during 2018.
|
(2)
|
Represents the grant date fair value of the annual grant of 1,210 RSUs to the
non-employee
directors then
|
|
serving as directors on May 3, 2018, determined in accordance with FASB ASC Topic 718. See Note 7
to our consolidated financial
statements for the three years ended December 31, 2018 filed with the SEC on February 26, 2019 for the assumptions made in determining grant date fair value. As of December 31, 2018, the
non-employee
directors then serving as directors held the following RSUs (consisting of annual RSU grants, including RSUs previously deferred, and RSUs granted pursuant to the directors deferred compensation
plan, as adjusted for dividends paid on our common stock):
|
61
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
|
|
|
|
|
Non-Employee
Director
|
|
RSUs
(#)
|
|
Michael Bender
|
|
|
2,926
|
|
Rachna Bhasin
|
|
|
1,234
|
|
Alvin Bowles
|
|
|
1,234
|
|
Ellen Levine
|
|
|
1,234
|
|
Fazal Merchant
|
|
|
2,188
|
|
Patrick Moore
|
|
|
8,645
|
|
Robert Prather
|
|
|
23,792
|
|
Michael Roth
|
|
|
1,234
|
|
(3)
|
During 2018 two directors elected to defer annual cash compensation pursuant to the directors deferred compensation plan
described above. No amount is reported in this column due to the fact that above-market or preferential earnings were not available under the plan.
|
62
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Certain Transactions
Since January 1, 2018, there have not been any related person transactions that are required to be disclosed pursuant
to Item 404(a) of Regulation
S-K
under the Securities Exchange Act of 1934.
Our policies and procedures for the review,
approval or ratification of related person transactions (including those required to be disclosed under Item 404(a) of SEC Regulation
S-K)
are referenced in the charter of the Audit Committee of the Board and
are as follows: Possible related person transactions are first screened by the companys legal department for
materiality and then sent to the Audit Committee of the Board (or, if otherwise determined by the Board, another committee of the Board) for review, discussion with the companys management
and independent registered public accounting firm and approval. In its discretion, the Audit Committee (or other committee) may also consult with our legal department or external legal counsel. Audit Committee (or other committee) review and
approval of related person transactions would be evidenced in the minutes of the applicable Audit Committee (or other committee) meeting.
Section 16(a)
Beneficial Ownership Reporting Compliance
Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers and directors and persons who
beneficially own more than 10% of the outstanding shares of our common stock to file reports of ownership and changes in ownership with the SEC and the NYSE. Based solely on our review of those reports and written representations from our executive
officers and directors, we believe that in 2018 all of our executive officers, directors and greater than 10% beneficial owners were in
compliance with all applicable filing requirements, except: (1) a Form 4 for Alvin Bowles reporting the sale of 1,326 shares of common stock was not reported on a timely basis due to an
administrative error by the reporting persons broker; and (2) a Form 4 for Michael Bender reporting the acquisition of 4,462 shares of common stock upon the vesting of deferred restricted stock units was not reported on a timely
basis due to an administrative error by the company.
63
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Equity Compensation Plan Information
December 31, 2018 Equity Compensation Plan Information Table
The table below includes information about our equity compensation plans as of December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan category
|
|
Number of
securities to be
issued upon
exercise of
outstanding
options,
warrants and
rights
|
|
|
Weighted
average
exercise price
of outstanding
options,
warrants and
rights
|
|
|
Number of
securities
remaining
available for
future
issuance
under equity
compensation
plans
|
|
Equity compensation plans approved by security holders
|
|
|
378,792
|
(1)
|
|
|
-
|
(1)
|
|
|
1,452,525
|
|
Equity compensation plans not approved by security holders
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
378,792
|
(1)
|
|
|
-
|
(1)
|
|
|
1,452,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consists of: 237,112 shares issuable upon the vesting of time-based RSUs, with a weighted-average grant date
fair value of $61.42 per share; 126,010 shares issuable upon the vesting of performance-based RSUs, with a weighted-average grant date fair value of $58.01 per share (valuing the 2016 performance-based RSUs at the stretch (150%) level and the
remaining performance-based RSUs outstanding at the target (100%) level); and 15,670 shares issuable upon the exercise of stock options (with a weighted-average exercise price of $20.97 per share).
|
64
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Our Independent Registered Public Accounting Firm
Appointment of Ernst & Young LLP
The Audit Committee is directly responsible for the appointment, compensation, retention and oversight of the work of our independent registered public accounting firm.
The committee has appointed Ernst & Young LLP as our independent registered public accounting firm, who will audit our consolidated financial statements for 2019 and the effectiveness of our internal control over financial reporting as of
December 31, 2019. This appointment has been submitted for your ratification. The committee and the Board believe that the continued retention of Ernst & Young LLP as our independent registered public accounting firm is in the best
interests of the company and its stockholders. If you do not ratify the appointment of Ernst & Young LLP, the committee will reconsider their appointment. Ernst & Young LLP has served as our independent registered public accounting
firm since 2002. Representatives of Ernst & Young LLP will attend the 2019 Annual Meeting and will have an opportunity to speak and respond to your questions.
Fee Information
We paid the following amounts as
audit, audit-related, tax and other services fees to Ernst & Young LLP for the years ended December 31, 2018 and 2017:
|
|
|
|
|
|
|
|
|
Description of
Services
|
|
2018 Fees
($)
|
|
|
2017 Fees
($)
|
|
Audit Fees
|
|
|
1,791,074
|
|
|
|
1,374,274
|
|
Audit-Related Fees
|
|
|
152,310
|
|
|
|
66,411
|
|
Tax Fees
|
|
|
606,858
|
|
|
|
317,930
|
|
All Other Fees
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
2,550,242
|
|
|
|
1,758,615
|
|
Audit and Audit-Related Services
The fees for
audit services during 2018 and 2017 include fees associated with the audit of our consolidated financial statements, including the audit of internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act, issuances of
comfort letters and assistance with documents filed with the SEC and reviews of our 2018 and 2017
quarterly financial statements. The fees for audit-related services during 2018 represent fees related to a stand-alone audit of the Gaylord Rockies joint venture (of which we paid our pro-rata
share) and a stand-alone audit of our Entertainment business segment. The fees for audit-related services during 2017 represent fees related to a stand-alone audit of our Entertainment business segment and other projects. Ernst & Young LLP
did not provide professional services during 2018 or
2017 related to financial information systems design and implementation.
Tax Services
In 2018, approximately 10% of fees for tax services related to general tax compliance matters, tax advice and planning, and tax assistance with respect to our REIT
compliance efforts. The remaining 90% of fees for non-recurring tax services in 2018 related primarily to an intracompany entity restructuring and the transaction in which we increased our ownership in the Gaylord Rockies joint venture and the REIT
structuring and compliance analysis associated with such joint venture. In 2017, approximately 17% of fees for tax services related to general tax compliance matters, tax advice and planning, and tax assistance, including with respect to our REIT
compliance efforts. The remaining 83% of fees for
non-recurring
tax services in 2017 related primarily to tax advice and planning with respect to the renewal of the intracompany leases associated with our REIT
structure and an intracompany entity restructuring. We expect that, due to our REIT status and the nature of our assets (including the Gaylord Rockies joint venture project), tax services fees paid to Ernst & Young LLP in a given year may
be higher than those tax services fees paid to Ernst & Young LLP than in years when we were operating as a taxable operating company. However, we believe that the selection of Ernst & Young LLP to provide these REIT-related
services, and the amount of fees paid to Ernst & Young LLP in 2018 and 2017 to provide these services, was appropriate and in the best interests of the company and our stockholders given Ernst & Young LLPs expertise and
historical knowledge of our company and its organizational structure. We believe this expertise is critical to our ongoing REIT compliance efforts.
65
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Audit Committee
Pre-Approval
Policy
All audit, audit-related, tax and other services were
pre-approved
by the committee, which concluded that the provision of such
services by Ernst & Young LLP was compatible with the maintenance of that firms independence in the conduct of its auditing functions. The committees
pre-approval
policy provides for
pre-approval
of audit, audit-related, tax and other services specifically described by the committee on
an annual basis, and individual engagements anticipated to exceed
pre-established
thresholds must be separately approved. The policy also requires specific
approval by the committee if total fees for audit-related and tax services would exceed total fees for audit services in any fiscal year. The policy authorizes the committee to delegate to one or more of its members
pre-approval
authority with respect to permitted services.
Audit Committee Report
The following report of the Audit Committee does not constitute soliciting material and should not be deemed filed or
incorporated by reference into any of our filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent we specifically incorporate this report by reference therein.
The committee operates under a written charter originally adopted by the Board on February 4, 2004, as amended, which can be found on our website at
www.rymanhp.com
under Corporate Governance on the Investor Relations page. The charter is also available in print to any stockholder who requests it by making a written request addressed to:
Ryman Hospitality Properties, Inc.
Attn: Corporate
Secretary
One Gaylord Drive
Nashville, Tennessee
37214
All members of the committee meet the SEC and NYSE definitions of independence and financial literacy for audit committee members. In addition, the Board has
determined that Mr. Prather and Mr. Merchant are audit committee financial experts for purposes of SEC rules. During the fall of 2018 the committee conducted its annual self-evaluation in order to assess its effectiveness, and
at its December 2018 meeting the committee members discussed the results of its self-evaluation process.
The committee reviews the financial information provided to
stockholders and others, oversees the performance of the internal audit function and the system of internal control over financial reporting which management and the Board have established, oversees compliance with legal and regulatory
requirements by the company and its employees relating to the preparation of financial information and reviews the independent registered public accounting firms qualifications,
independence and performance.
As part of its oversight of our financial statements, the committee has:
|
|
reviewed and discussed our audited financial statements for the year ended December 31, 2018, and the financial statements for the three years ended December 31, 2018, with management and Ernst &
Young LLP, our independent registered public accounting firm;
|
|
|
discussed with Ernst & Young LLP the matters required to be discussed by applicable requirements of the Public Company Accounting Oversight Board; and
|
|
|
received the written disclosures and the letter from Ernst & Young LLP required by the applicable requirements of the Public Company Accounting Oversight Board regarding Ernst & Young LLPs
communications with the committee on independence, and has discussed with Ernst & Young LLP its independence.
|
The committee also has
considered whether the provision by Ernst & Young LLP of
non-audit
services described under
Our Independent Registered Public Accounting Firm
above is compatible with maintaining
Ernst & Young LLPs independence.
The committees review and discussion of the audited financial statements with management included a discussion
of the quality, not just the acceptability, of the accounting principles, the reasonableness of significant judgments and the clarity of disclosures in the financial statements. In addressing the quality of managements accounting judgments,
members of
66
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
the committee asked for managements representations that our audited consolidated financial statements have been prepared in conformity with generally accepted accounting principles. In
performing these functions, the committee acts in an oversight capacity. In its oversight role, the committee relies on the work and assurances of management, which has the primary responsibility for financial statements and reports, and of
Ernst & Young LLP, which in its report expresses an opinion on the conformity of our annual financial statements with generally accepted accounting principles.
In reliance on these reviews and discussions and the report of the independent registered public accounting firm, the
committee recommended to the Board that the audited financial statements be included in the companys Annual Report on
Form 10-K
for the year ended December 31, 2018, for filing with the SEC.
Audit Committee:
Patrick Moore, Chairman
Rachna Bhasin
Alvin Bowles
Fazal Merchant
Robert Prather
Submitting Stockholder
Proposals and Nominations for 2020 Annual Meeting
Stockholder Proposals
If you would like to submit a proposal for inclusion in our proxy statement for the 2020 annual meeting under SEC Rule
14a-8,
your
proposal must be in writing and be received by us at our principal executive offices prior to the close of business on December 4, 2019 and otherwise comply with the requirements of Rule
14a-8.
If you want to bring business before the 2020 annual meeting which is not the subject of a proposal submitted for inclusion in the proxy statement under Rule
14a-8
(excluding director nominations, which are discussed below under
Nominations of Board Candidates
), our Bylaws require that you deliver a notice in proper written form (and provide all information
required by our Bylaws) to our Secretary by February 9, 2020, but not before January 10, 2020 (or, if the annual meeting is called for a date that is not within 30 days of May 9, 2020, the notice must be received not earlier than
the close of business on the 120
th
day prior to such annual meeting and not later than the close of business on the later of the 90
th
day prior
to such annual meeting or the 10
th
day following the day on which notice of the date of the annual meeting was mailed or public disclosure of the date of
the annual meeting was made, whichever first occurs). If the presiding officer at an annual meeting determines that business was not properly brought before the annual meeting in accordance with
the procedures set forth in our Bylaws, then the presiding officer will declare to the meeting that your business was not properly brought before the meeting, and your business will not be transacted at that meeting.
Nominations of Board Candidates
If you wish to
nominate an individual to serve as a director, our Bylaws require that you deliver timely notice of the nomination in proper written form, as provided by our Bylaws. The notice must include certain biographical information regarding the proposed
nominee, a completed written questionnaire with respect to each proposed nominee setting forth the background and qualifications of such proposed nominee (which questionnaire will be provided by the Secretary upon written request), the proposed
nominees written consent to nomination and the additional information as set forth in our Bylaws.
For a stockholders notice to the Secretary to be
timely under our Bylaws, it must be delivered to or mailed and received at our principal executive offices:
67
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
(a) in the case of a nomination to be voted on at an annual meeting, by February 9, 2020, but not before January 10, 2020 (or, if the annual meeting is called for a date that is
not within 30 days of May 9, 2020, the notice must be received not earlier than the close of business on the 120
th
day prior to such annual meeting and not later than the close of
business on the later of the 90
th
day prior to such annual meeting or the 10
th
day following the day on which notice of the date of the annual
meeting was mailed or public disclosure of the date of the annual meeting was made, whichever first occurs); and (b) in the case of a special meeting of stockholders called for the purpose of electing directors, not earlier than the close of
business on the 120
th
day prior to such special meeting and not later than the close of business on the later of the 90
th
day prior to such special meeting or the 10
th
day following the day on which notice of the date of the special meeting was mailed or public
disclosure of the date of the special meeting was made, whichever first occurs. If the presiding officer at a meeting determines that a nomination was not properly made in accordance with the procedures set forth in our Bylaws, then the presiding
officer will declare to the meeting that the nomination was defective, and the defective nomination shall be disregarded.
Discretionary Voting
of Proxies on Other Matters
We do not intend to bring any proposals to the 2019 Annual Meeting other than Proposals 1, 2 and 3. As noted above, our Bylaws
require stockholders to give advance notice of any proposal intended to be presented at an annual meeting. The deadline for this notice has passed, and we did not receive any such notice made in compliance with our Bylaws. If any other matter
properly comes before our stockholders for a vote at the 2019 Annual Meeting, the persons named in the accompanying proxy card intend to vote the shares represented by them in accordance with their best judgment.
By Order of the Board of Directors,
Scott J. Lynn,
Secretary
Nashville, Tennessee
April 2, 2019
68
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Appendix A
Reconciliation of
Non-GAAP
Financial Measures to GAAP Measures
Reconciliation of
AFFO
(1)
to Net Income
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
2018
|
|
|
|
|
|
2017
|
|
Net income
|
|
$
|
264,670
|
|
|
|
|
|
|
$
|
176,100
|
|
Depreciation & amortization
|
|
|
120,876
|
|
|
|
|
|
|
|
111,959
|
|
Pro rata adjustments from joint ventures
|
|
|
(130,524)
|
|
|
|
|
|
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations (FFO)
|
|
$
|
255,022
|
|
|
|
|
|
|
$
|
288,130
|
|
Non-cash
lease expense
|
|
|
5,291
|
|
|
|
|
|
|
|
5,180
|
|
Pension settlement charge
|
|
|
1,559
|
|
|
|
|
|
|
|
1,734
|
|
Impairment charges
|
|
|
23,783
|
|
|
|
|
|
|
|
35,418
|
|
Pro rata adjustments from joint ventures
|
|
|
(2,702)
|
|
|
|
|
|
|
|
307
|
|
Loss on other assets
|
|
|
80
|
|
|
|
|
|
|
|
1,097
|
|
Write-off
of deferred financing costs
|
|
|
1,956
|
|
|
|
|
|
|
|
925
|
|
Amortization of
deferred financing costs
|
|
|
5,632
|
|
|
|
|
|
|
|
5,350
|
|
Transaction costs on completed acquisitions
|
|
|
993
|
|
|
|
|
|
|
|
-
|
|
Deferred tax (benefit) expense
|
|
|
10,190
|
|
|
|
|
|
|
|
(52,637)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from operations (AFFO)
|
|
$
|
301,804
|
|
|
|
|
|
|
$
|
285,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
(2)
|
|
|
(68,792)
|
|
|
|
|
|
|
|
(60,672)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO less maintenance capital expenditures
|
|
$
|
233,012
|
|
|
|
|
|
|
$
|
224,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share
|
|
|
$ 5.16
|
|
|
|
|
|
|
|
$ 3.44
|
|
Diluted net income per share
|
|
|
$ 5.14
|
|
|
|
|
|
|
|
$ 3.43
|
|
|
|
|
|
FFO per basic share
|
|
|
$ 4.97
|
|
|
|
|
|
|
|
$ 5.63
|
|
Adjusted FFO per basic share
|
|
|
$ 5.88
|
|
|
|
|
|
|
|
$ 5.58
|
|
|
|
|
|
FFO per diluted share
|
|
|
$ 4.95
|
|
|
|
|
|
|
|
$ 5.61
|
|
Adjusted FFO per diluted share
|
|
|
$ 5.86
|
|
|
|
|
|
|
|
$ 5.56
|
|
(1)
|
We calculate FFO, which definition was clarified by NAREIT in its December 2018 white paper as net income
(calculated in accordance with GAAP) excluding depreciation and amortization (excluding amortization of deferred financing costs and debt discounts), gains and losses from the sale of certain real estate assets, gains and losses from a change in
control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciated real estate held by the entity, income (loss) from consolidated joint
ventures attributable to noncontrolling interest, and pro rata adjustments for unconsolidated joint ventures. The clarifications did not change our calculation of FFO and Adjusted FFO for any historical period. To calculate Adjusted FFO, we
then exclude, to the extent the following adjustments occurred during the periods presented, impairment charges that do not meet the NAREIT definition above; write-offs of deferred financing costs,
non-cash
ground lease expense, amortization of debt discounts and amortization of deferred financing costs, pension settlement charges, additional pro rata adjustments from joint ventures, (gains) losses on other assets, transaction costs on completed
acquisitions, deferred income tax expense (benefit), and (gains) losses on extinguishment of debt and warrant settlements. We believe that the presentation of Adjusted FFO provides useful information to investors regarding the performance of our
ongoing operations because it is a measure of our operations without regard to specified
non-cash
items such as real estate depreciation and amortization, gain or loss on sale of assets and certain other items
which we believe are not indicative of the performance of our underlying hotel properties. We believe that these items are more representative of our asset base than our ongoing operations. We also use Adjusted FFO as a measure in determining our
results after taking into account the impact of our capital structure.
|
(2)
|
Represents furniture, fixtures and equipment reserve for managed properties and maintenance capital expenditures for
non-managed
properties.
|
A-1
|
2019 NOTICE OF MEETING AND PROXY STATEMENT
|
Reconciliation of Consolidated Adjusted EBITDA
(1)
to Net Income
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
2018
|
|
|
|
|
|
2017
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,275,118
|
|
|
|
|
|
|
$
|
1,184,719
|
|
Net Income
|
|
$
|
264,670
|
|
|
|
|
|
|
$
|
176,100
|
|
Provision (benefit) for income taxes
|
|
|
11,745
|
|
|
|
|
|
|
|
(49,155)
|
|
Other (gains) and losses, net
|
|
|
(1,633)
|
|
|
|
|
|
|
|
337
|
|
(Gain) loss from joint ventures
|
|
|
(125,005)
|
|
|
|
|
|
|
|
4,402
|
|
Interest expense, net
|
|
|
64,492
|
|
|
|
|
|
|
|
54,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
214,269
|
|
|
|
|
|
|
|
185,917
|
|
Depreciation & amortization
|
|
|
120,876
|
|
|
|
|
|
|
|
111,959
|
|
Preopening costs
|
|
|
4,869
|
|
|
|
|
|
|
|
1,926
|
|
Non-cash
ground lease expense
|
|
|
5,291
|
|
|
|
|
|
|
|
5,180
|
|
Equity-based compensation expense
|
|
|
7,656
|
|
|
|
|
|
|
|
6,636
|
|
Pension settlement charge
|
|
|
1,559
|
|
|
|
|
|
|
|
1,734
|
|
Impairment charges
|
|
|
23,783
|
|
|
|
|
|
|
|
35,418
|
|
Interest income on Gaylord National bonds
|
|
|
10,128
|
|
|
|
|
|
|
|
11,639
|
|
Pro rata adjusted EBITDA from joint ventures
|
|
|
(2.394)
|
|
|
|
|
|
|
|
(323)
|
|
Transaction costs on completed acquisitions
|
|
|
993
|
|
|
|
|
|
|
|
-
|
|
Other gains and (losses), net
|
|
|
1,633
|
|
|
|
|
|
|
|
(337)
|
|
Loss on disposal of assets
|
|
|
115
|
|
|
|
|
|
|
|
1,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted EBITDA
|
|
$
|
388,778
|
|
|
|
|
|
|
$
|
360,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
To calculate Adjusted EBITDA, we first determine Operating Income, which represents Net Income (loss) determined in
accordance with GAAP, plus, to the extent the following adjustments occurred during the periods presented: loss (income) from discontinued operations, net; provision (benefit) for income taxes; other (gains) and losses, net; loss on extinguishment
of debt; (income) loss from joint ventures; and interest expense, net. Adjusted EBITDA is then calculated as Operating Income, plus, to the extent the following adjustments occurred during the periods presented: depreciation and amortization;
preopening costs;
non-cash
ground lease expense; equity-based compensation expense; impairment charges; any transaction costs of completed acquisitions; interest income on bonds; other gains and (losses), net;
(gains) losses on warrant settlements; pension settlement charges; pro rata Adjusted EBITDA from unconsolidated joint ventures; (gains) losses on the disposal of assets; and any other adjustments we have identified. We believe Adjusted EBITDA is
useful to investors in evaluating our operating performance because this measure helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense)
and our asset base (primarily depreciation and amortization) from our operating results.
|
A-2
RYMAN HOSPITALITY PROPERTIES, INC.
ONE GAYLORD DRIVE
NASHVILLE, TN
37214
VOTE BY INTERNET -
www.proxyvote.com
or scan the QR Barcode above
Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time on May 8,
2019 (for shares in the Companys 401(k) Savings Plan, the voting deadline is 11:59 P.M. Eastern Time on May 7, 2019). 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 on May 8, 2019 (for shares in the Companys 401(k)
Savings Plan, the voting deadline is 11:59 P.M. Eastern Time on May 7, 2019). Have your proxy card in hand when you call and then follow the instructions.
VOTE BY MAIL
Mark, sign and date your proxy card and return
it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:
E57216-P17395 KEEP THIS
PORTION FOR YOUR RECORDS
DETACH AND RETURN THIS PORTION ONLY
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYMAN HOSPITALITY PROPERTIES, INC.
The Board of Directors recommends you vote FOR the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
|
Election of Directors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nominees:
|
|
For
|
|
Against
|
|
Abstain
|
|
|
|
The Board of Directors recommends you vote FOR proposals 2 and 3.
|
|
For
|
|
Against
|
|
Abstain
|
|
|
|
|
|
|
1a. Rachna
Bhasin
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
2.
|
|
To approve, on an advisory basis, the Companys executive
compensation.
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
|
|
|
1b. Alvin Bowles
Jr.
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
3.
|
|
To ratify the appointment of Ernst & Young LLP as the
Companys independent registered public accounting firm for fiscal year 2019.
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
|
|
|
1c. Fazal
Merchant
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1d. Patrick Q.
Moore
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
NOTE:
Such other business as may properly
come
|
|
|
|
|
|
|
|
|
|
|
|
|
1e. Christine Pantoya
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
before the meeting or any adjournment thereof.
|
|
|
|
|
|
|
|
|
|
|
|
|
1f. Robert
S. Prather, Jr.
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1g. Colin V.
Reed
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1h. Michael I.
Roth
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Signature [PLEASE SIGN WITHIN BOX]
|
|
Date
|
|
|
|
Signature (Joint Owners)
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:
The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com.
|
|
|
E57217-P17395
|
|
|
|
|
|
|
|
|
|
|
|
RYMAN
HOSPITALITY PROPERTIES, INC.
Annual Meeting of Stockholders
May 9, 2019 10:00 A.M.
This proxy is solicited by the Board of Directors
The stockholder(s) hereby appoint(s) Colin V. Reed, Michael I. Roth and
Scott J. Lynn, and each of them, as proxies, each with the power to appoint his substitute, and hereby authorize(s) them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of common stock of RYMAN
HOSPITALITY PROPERTIES, INC. that the stockholder(s) is/are entitled to vote at the Annual Meeting of Stockholders to be held at 10:00 A.M., Central Time on May 9, 2019, at the Gaylord Opryland Resort and Convention Center, 2800 Opryland Drive,
Nashville, TN 37214, and any adjournment or postponement thereof. In their discretion the proxies are authorized to vote upon such other business as may properly come before the Annual Meeting of Stockholders or any postponement or adjournment
thereof.
This proxy, when properly executed, will be voted in the manner
directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors recommendations. This proxy also provides voting instructions for shares held by Lincoln Financial Group, the Trustee for the
Companys 401(k) Savings Plan, and directs such Trustee to vote, as indicated on the reverse side of this card, any shares allocated to the account in this plan. The Trustee will vote these shares as you direct. The Trustee will vote allocated
shares of the Companys stock for which proxies are not received in direct proportion to voting by allocated shares for which proxies are received. This card should be voted by 11:59 P.M. Eastern Time on May 7, 2019, for the Trustee to vote the
plan shares.
Continued and to be signed on reverse
side
|
|
|
Ryman Hospitality Proper... (NYSE:RHP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ryman Hospitality Proper... (NYSE:RHP)
Historical Stock Chart
From Jul 2023 to Jul 2024