BLACK BOX CORPORATION FORM 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 14, 2009
Black Box Corporation
(Exact Name of Registrant as Specified in its Charter)
|
|
|
|
|
Delaware
|
|
0-18706
|
|
95-3086563 |
(State or Other Jurisdiction
|
|
(Commission File Number)
|
|
(IRS Employer |
of Incorporation)
|
|
|
|
Identification No.) |
|
|
|
|
|
1000 Park Drive |
|
|
|
|
Lawrence, Pennsylvania |
|
|
|
15055 |
(Address of Principal Executive Offices) |
|
|
|
(Zip Code) |
Registrants telephone number, including area code: (724) 746-5500
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
o |
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
o |
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
o |
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
o |
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers.
(e) On May 14, 2009, the Compensation Committee (the Committee) of the Board of Directors
(the Board) of Black Box Corporation (the Company) recommended that the Board approve, and the
Board approved, an annual incentive bonus plan (the FY10 Annual Incentive Plan) under the Black
Box Corporation 2008 Long-Term Incentive Plan (the 2008 Plan) for the fiscal year ending March
31, 2010 (Fiscal 2010). The performance goals for the FY10 Annual Incentive Plan are, as defined
below, operating earnings per share, adjusted operating margin percent, adjusted EBITDA and
DSOs. Operating earnings per share means operating net income divided by weighted average
common shares outstanding (diluted) with operating net income meaning net income plus
Reconciling Items (as defined below); adjusted operating margin percent means operating income plus
Reconciling Items divided by total revenues; adjusted EBITDA means EBITDA (net income before
provision for income taxes plus interest, depreciation and amortization) plus Reconciling Items;
and DSOs is an internal management calculation based on
the balances in net accounts receivable, costs in excess of billings
and billings in excess of costs at the end of the measurement period.
Reconciling Items means employee severance costs, amortization of intangible assets on
acquisitions, stock-based compensation expense, asset write-up depreciation expense on
acquisitions, costs and expenses associated with the historical stock option granting practices
investigation and related matters and certain other identified legal matters, the change in fair
value of the interest-rate swap, pension plan funding expenses, the impact of current audits by the
Internal Revenue Service and the impact of any goodwill impairment.
The performance goals for the FY10 Annual Incentive Plan will be equally weighted. Under the
FY10 Annual Incentive Plan, the achievement of the performance goals at 80% of target (90% of
target for the DSOs performance goal) will result in a payout of 50% of targeted annual bonus, the
achievement of the performance goals at 100% of target will result in a payout of 100% of targeted
annual bonus and the achievement of the performance goals at 120% of target (110% of target for the
DSOs performance goal) will result in a payout of 150% of targeted annual bonus. Following Board
review and approval, the Committee made targeted annual bonus awards under the FY10 Annual
Incentive Plan to the Companys executive officers as follows: R. Terry Blakemore, President and
Chief Executive Officer 100% of base salary or $550,000; Michael McAndrew, Vice President, Chief
Financial Officer, Treasurer and Secretary 80% of base salary or $252,000; and Francis W.
Wertheimber, Senior Vice President 50% of base salary or $132,500. Key, non-executive employees
are also participating in the FY10 Annual Incentive Plan generally on the same terms as the
executive officers.
In addition, on May 14, 2009, the Committee recommended that the Board approve, and the Board
approved, a new Long-Term Incentive Program (the FY10 LTIP) under the 2008 Plan for the two
fiscal years ending March 31, 2011 (the Performance Period). The FY10 LTIP is comprised of a
restricted stock unit grant payable in shares of the Companys Common Stock, par value $.001 per
share (the Common Stock), representing 20% of the award, a stock option grant representing 30% of
the award and a performance share award (the Performance Award) payable in shares of the Common
Stock.
2
The restricted stock units and stock options granted pursuant to the FY10 LTIP will vest in
equal increments over three years. The payout on the Performance Awards will be based on the
Companys performance of (i) a cumulative adjusted EBITDA goal (the EBITDA Goal) and (ii) the
Companys total shareholder return (TSR) relative to a peer group of companies for the
Performance Period. These two (2) performance goals will be equally weighted. As a result, for
purposes of determining the payout of the Performance Awards: (A) the achievement of 75% of the
EBITDA Goal will result in a payout of 25% of the targeted Performance Award, the achievement of
100% of the EBITDA Goal will result in a payout of 50% of the targeted Performance Award and the
achievement of 120% of the EBITDA Goal will result in a payout of 75% of the targeted Performance
Award; and (B) the ranking of the Companys TSR in the 25th percentile of the peer
groups TSR will result in a payout of 25% of the targeted Performance Award, the ranking of the
Companys TSR at the median level of performance of the Companys TSR as compared to the Companys
peer groups TSR will result in a payout of 50% of the targeted Performance Award and the ranking
of the Companys TSR in the 75th percentile of the peer groups TSR will result in a
payout of 75% of the targeted Performance Award.
Following Board review and approval, the Committee approved the following awards under the
FY10 LTIP to the Companys executive officers: Mr. Blakemore a restricted stock unit award of
16,000 shares of the Common Stock, a stock option grant for 67,000 shares of the Common Stock and a
Performance Award of 40,000 shares of the Common Stock; Mr. McAndrew a restricted stock unit
award of 4,000 shares of the Common Stock, a stock option grant for 17,000 shares of the Common
Stock and a Performance Award of 10,000 shares of the Common Stock; and Mr. Wertheimber a
restricted stock unit award of 2,000 shares of the Common Stock, a stock option grant for 8,000
shares of the Common Stock and a Performance Award of 5,000 shares of the Common Stock. Key,
non-executive employees are also participating in the FY10 LTIP generally on the same relative
basis as the executive officers.
The foregoing awards under the 2008 Plan will be granted on May 26, 2009 and the stock options
will have an exercise price equal to the fair market value of the Common Stock on the date of
grant.
Item 8.01 Other Events.
The following are the cash compensation arrangements for the non-employee members of the Board
as adopted by the Board on May 14, 2009, effective as of the first day of the Companys second
quarter of Fiscal 2010.
|
|
|
Each non-employee member of the Board will continue to receive an annual retainer of
$35,000 per year, payable quarterly. |
|
|
|
|
Meeting fees for Board and Board committee meetings will remain as follows: $2,000
for each Board meeting attended in person; $1,000 for each Board meeting attended by
telephone; $1,500 for each meeting of the Audit Committee of the Board attended in
person or by telephone; and $1,000 for each meeting of the Compensation Committee of
the Board, the Governance Committee of the Board and the Nominating Committee of the
Board attended in person or by telephone. |
3
|
|
|
The Chairperson of the Compensation Committee of the Board will receive an annual
retainer of $7,500, payable quarterly. |
|
|
|
|
The Chairperson of each of the Governance Committee of the Board and the Nominating
Committee of the Board will continue to receive an annual retainer of $5,000, payable
quarterly. |
|
|
|
|
The Chairperson of the Audit Committee of the Board will continue to receive an
annual retainer of $15,000, payable quarterly. |
|
|
|
|
The non-executive Chairperson of the Board will receive an annual retainer of
$75,000, payable quarterly. |
In addition, each non-employee director will receive, on May 26, 2009, a restricted stock unit
award of 3,000 shares of the Common Stock which will immediately vest upon grant.
4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
|
Black Box Corporation
|
|
Date: May 20, 2009 |
By: |
/s/ Michael McAndrew
|
|
|
|
Michael McAndrew |
|
|
|
Vice President, Chief Financial Officer, Treasurer
and Secretary
(Principal Accounting Officer) |
|
|
5