NON-EQUITY COMPENSATION PLAN INFORMATION
Management Incentive Plan
The Management Incentive Plan, in which all Named Executive Officers participate, was established in December 1998, and specifies that the Compensation Committee shall
select participants in the plan and establish their individual target awards. The plan provides cash incentive payments that are tied directly to achievement of our performance metrics and goals. If we achieve the performance metrics and goals
selected by the Committee, then cash incentive payments are provided to participants early in the year following such achievement.
On January 26, 2021, the
Compensation Committee selected annual performance metrics and goals and target annual cash incentive awards for 2021 under the Management Incentive Plan. Based on 2021 achievement of performance goals, the Committee approved payments of 116% of the
target amount for Management Incentive Plan participants on January 25, 2022. For more detailed information with regard to performance metrics and goals, see the section entitled Compensation Compensation Discussion and Analysis.
EQUITY COMPENSATION PLAN INFORMATION
Stock Plan
The Stock Plan is an equity-based plan in which selected
management employees, including all Named Executive Officers, participate. Awards under the Stock Plan vary each year based on the achievement of the prior years annual incentive award performance goals. For more detailed information with
regard to performance metrics and goals, see the section entitled Compensation Discussion and Analysis.
Based on 2021 results described above, the
Compensation Committee granted awards of restricted stock at 125% of the target amount on January 25, 2022. Grants of restricted stock generally vest at a rate of 25% per year beginning in the year following the year of the grant. All
shares of restricted stock, regardless of vesting status, are eligible for quarterly dividend payments, as well as for participation in the Dividend Reinvestment and Stock Purchase Plan, and have full voting rights. In 2021, we paid four quarterly non-preferential dividends of $0.38 per share on all shares of common stock outstanding, which included all shares of unvested restricted stock, as of each respective record date.
The Committee sets the target restricted stock awards with the goal of granting a target award with a value equal to the market median of the broad-based published
compensation survey group, as recommended by Willis Towers, at the time of the grant, which translates to the Stock Plan target award value being set as the job grade salary range midpoint. The Committee also used information from the proxy
statements of our peer group, at the 25th percentile target, as a secondary source to set the CEOs and CFOs target award. The award is then reduced for anticipated income taxes and
Medicare taxes, with plan participants receiving the shares net of such taxes, subject to the vesting schedule. As the shares vest, they become
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