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| | | | A-1 | | |
| Date and Time: | | | Place: | |
| Thursday, January 21, 2021, at 9:00 a.m. (ET) | | | www.virtualshareholdermeeting.com/SMPL2021. The 2021 Annual Meeting will be in virtual format only, via the internet, with no physical in-person meeting | |
| Record Date: | | | | |
| November 25, 2020 | | | | |
Proposal
|
| |
Vote Required for Approval
|
| |
Board’s Recommendation
|
|
Election of the four Class I director nominees | | | A plurality of the votes cast (the four nominees receiving the highest number of “FOR” votes cast will be elected) | | |
FOR all director nominees
|
|
Ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for fiscal year 2021 | | | Majority of shares present in person, including by means of remote communication, or represented by proxy and entitled to vote | | |
FOR
|
|
Advisory vote to approve the compensation of our named executive officers | | | Majority of shares present in person, including by means of remote communication, or represented by proxy and entitled to vote | | |
FOR
|
|
|
•
Greater than 80% of directors are independent
|
| |
•
Third-party anonymous ethics reporting hotline
|
|
|
•
Independent Chairman of the Board of Directors
|
| |
•
Frequent engagement by management with institutional stockholders
|
|
|
•
All members of the Compensation Committee, the Audit Committee and the Nominating and Corporate Governance Committee are independent
|
| |
•
Executive sessions of non-management directors at each Board meeting
|
|
|
•
Robust director and executive officer stock ownership guidelines
|
| |
•
Independent compensation consultant
|
|
|
•
No hedging or pledging permitted by executive officers and directors
|
| |
•
Compensation policies and programs that discourage excessive risk-taking
|
|
|
•
Annual Board and committee self-assessments
|
| |
•
Board oversight of risk and risk management
|
|
Proposal
|
| |
Vote Required
|
| |
Effect of
Abstentions |
| |
Effect of Broker
Non-Votes |
|
1.
Election of the four Class I director nominees
|
| | A plurality of the votes cast (the four nominees receiving the highest number of “FOR” votes cast will be elected) | | |
No effect
|
| |
No effect
|
|
2.
Ratification of the appointment of Deloitte as our independent registered public accounting firm for fiscal year 2021
|
| | Majority of shares present in person, including by means of remote communication, or represented by proxy and entitled to vote | | |
Same as a vote
“Against” |
| |
Voted in the broker’s
discretion |
|
3.
Advisory vote to approve the compensation of our named executive officers
|
| | Majority of shares present in person, including by means of remote communication, or represented by proxy and entitled to vote | | |
Same as a vote
“Against” |
| |
No effect
|
|
|
Annual Board Service
|
| | Cash Retainer | | | | $ | 60,000 | | |
| | | | Restricted Stock Units(1) | | | | $ | 90,000 | | |
|
Board and Committee Chair Cash
Retainer |
| |
Chair and Vice Chair of the Board
|
| | |
$
|
25,000
|
| |
| | | | Audit Committee | | | | $ | 10,000 | | |
| | | | Compensation Committee | | | | $ | 7,500 | | |
| | | |
Nominating & Corporate Governance Committee
|
| | | $ | 5,000 | | |
Name
|
| |
Fees Earned
or Paid in Cash ($) |
| |
Stock Awards
($)(1) |
| |
Total
($) |
| |||||||||
James M. Kilts
|
| | | | 85,000 | | | | | | 89,999 | | | | | | 174,999 | | |
David J. West
|
| | | | 85,000 | | | | | | 89,999 | | | | | | 174,999 | | |
Clayton C. Daley, Jr
|
| | | | 67,500 | | | | | | 89,999 | | | | | | 157,499 | | |
Nomi P. Ghez
|
| | | | 65,000 | | | | | | 89,999 | | | | | | 154,999 | | |
Michelle P. Goolsby
|
| | | | 60,000 | | | | | | 89,999 | | | | | | 149,999 | | |
James E. Healey
|
| | | | 70,000 | | | | | | 89,999 | | | | | | 159,999 | | |
Arvin H. Kash
|
| | | | 60,000 | | | | | | 89,999 | | | | | | 149,999 | | |
Robert G. Montgomery
|
| | | | 60,000 | | | | | | 89,999 | | | | | | 149,999 | | |
Brian K. Ratzan
|
| | | | 60,000 | | | | | | 89,999 | | | | | | 149,999 | | |
James D. White
|
| | | | 60,000 | | | | | | 89,999 | | | | | | 149,999 | | |
Director
|
| |
Number of Shares
Subject to Outstanding RSUs as of August 29, 2020(1) |
| |||
James M. Kilts
|
| | | | 3,011 | | |
David J. West
|
| | | | 3,011 | | |
Clayton C. Daley, Jr
|
| | | | 3,011 | | |
Nomi P. Ghez
|
| | | | 3,011 | | |
Michelle P. Goolsby
|
| | | | 3,011 | | |
James E. Healey
|
| | | | 3,011 | | |
Arvin H. Kash
|
| | | | 3,011 | | |
Robert G. Montgomery
|
| | | | 3,011 | | |
Brian K. Ratzan
|
| | | | 3,011 | | |
James D. White
|
| | | | 3,011 | | |
| Robert G. Montgomery | | |
Director since 2017
|
|
| Joseph E. Scalzo | | |
Director since 2017
|
|
| Joseph J. Schena | | |
Director Nominee
|
|
| James D. White | | |
Director since 2019
|
|
| |
The Board recommends that you vote FOR the election of each of the Class I director nominees.
|
| |
| Clayton C. Daley, Jr. | | |
Director since 2017
|
|
| Nomi P. Ghez | | |
Director since 2017
|
|
| James E. Healey | | |
Director since 2017
|
|
| David W. Ritterbush | | |
Director since November 2019
|
|
| James M. Kilts, Chairman of the Board | | |
Director since 2017
|
|
| David J. West, Vice Chairman of the Board | | |
Director since 2017
|
|
| Michelle P. Goolsby | | |
Director since 2019
|
|
| Brian K. Ratzan | | |
Director since 2017
|
|
| | |
2019
|
| |
2020
|
| ||||||
Audit Fees(1)
|
| | | $ | 783,030 | | | | | $ | 1,120,020 | | |
Audit-Related Fees(2)
|
| | | | 444,988 | | | | | | 700,679 | | |
Tax Fees(3)
|
| | | | — | | | | | | 216,512 | | |
All Other Fees
|
| | | | 33,184 | | | | | | 3,884 | | |
Total
|
| | | $ | 1,261,202 | | | | | $ | 2,041,095 | | |
| | |
2019
|
| |||
Audit Fees(1)
|
| | | $ | 231,200 | | |
Audit-Related Fees(2)
|
| | | | 340,015 | | |
Tax Fees(3)
|
| | | | — | | |
All Other Fees
|
| | | | — | | |
Total
|
| | | $ | 571,215 | | |
| |
The Audit Committee and Board recommend that you vote FOR the ratification of the appointment of Deloitte as our independent registered public accounting firm for fiscal year 2021.
|
| |
| |
The Board recommends that you vote FOR the advisory vote to approve the compensation of our named executive officers.
|
| |
Name
|
| |
Age
|
| |
Position
|
|
Joseph E. Scalzo
|
| |
62
|
| | President and Chief Executive Officer and Director | |
Todd E. Cunfer
|
| |
56
|
| | Chief Financial Officer | |
C. Scott Parker
|
| |
64
|
| | Chief Marketing Officer of Atkins | |
Jill Short Clark
|
| |
52
|
| | Chief Customer Officer | |
Timothy R. Kraft
|
| |
41
|
| |
Chief Legal Officer, Corporate Secretary, Compliance Officer
|
|
Susan Hunsberger
|
| |
58
|
| | Senior Vice President and Chief Human Resources Officer | |
David Wallis
|
| |
57
|
| | Senior Vice President, Operations | |
Timothy A. Matthews
|
| |
41
|
| | Vice President, Controller and Chief Accounting Officer | |
Named Executive Officer
|
| |
Title
|
|
Joseph E. Scalzo
|
| | President and Chief Executive Officer | |
Todd E. Cunfer
|
| | Chief Financial Officer | |
David W. Ritterbush
|
| | President – Quest Nutrition | |
C. Scott Parker
|
| | Chief Marketing Officer | |
Timothy R. Kraft
|
| | Chief Legal Officer, Corporate Secretary, Compliance Officer | |
|
CEO Pay Elements
|
| |
Average NEO Pay Elements
|
|
|
|
| |
|
|
|
Things We Do
|
| |
Things We Don’t Do
|
| ||||||
| ✓ | | | Independent Compensation Committee. The Compensation Committee is comprised solely of independent directors. | | |
×
|
| | No excise tax gross-ups. We do not provide our management with “excise tax gross-ups” in the event of a change in control. | |
| ✓ | | | Independent compensation consultant. The Compensation Committee retains an independent compensation consultant. | | |
×
|
| | Ban on pledging. We do not allow our management or directors to pledge our stock to secure loans or other obligations. | |
| ✓ | | | Assessment of compensation risk. The Compensation Committee assessed our compensation policies and programs and determined that our compensation policies and programs are unlikely to give rise to risks reasonably likely to have a material adverse effect on the Company. | | |
×
|
| | Prohibition on hedging. We do not allow our management or directors to enter into derivative transactions in Company stock, including hedges. | |
| ✓ | | | Annual say-on-pay vote. We hold annual advisory say-on-pay votes to approve executive compensation and received support of 98.5% on such proposal at the 2020 annual meeting of stockholders. | | |
×
|
| | No excessive executive benefit programs. We do not provide our management with pensions or any other enhanced benefit programs. | |
| ✓ | | | Performance-based pay. The Compensation Committee focuses on paying our executives for their performance. | | |
×
|
| | No repricings. Our equity plans do not allow repricing of stock option or stock appreciation rights without stockholder approval. | |
| ✓ | | | Use of multiple performance metrics. The Compensation Committee used two equally weighted performance measures for the 2020 annual incentive bonus in an attempt to continue connecting executive compensation to overall company performance. | | |
×
|
| | No excessive perquisites. Our management receive limited perquisites. | |
| ✓ | | | Stock Ownership. We require strong stock ownership for executive officers and directors. | | |
×
|
| | No tax gross-ups. We do not gross-up any elements of compensation for executive officers. | |
| ✓ | | | Clawback Policy. In fiscal year 2019, we adopted an executive compensation “clawback” policy to recoup incentive compensation in certain situations. | | | | | | | |
|
B&G Foods
BellRing Brands Central Garden & Pet Company Edgewell Personal Care Company Hostess Brands |
| |
Inter Parfums
J&J Snack Foods John B. Sanfilippo & Son Lancaster Colony The Boston Beer Company |
| |
The Hain Celestial Group
Tootsie Roll Industries USANA Health Sciences WD-40 Company |
|
Element
|
| |
Fixed or
Variable |
| |
Purpose & Design Features
|
|
Base Salary
|
| |
Fixed
|
| | To attract and retain executives by offering fixed compensation that is competitive with market opportunities and that recognizes each executive’s position, role, responsibility and experience. | |
Annual Cash Incentive
|
| |
Variable
|
| | To motivate and reward the achievement of our annual performance, based on the attainment of pre-defined financial performance objectives. | |
Equity Awards
|
| |
Variable
|
| | To align executives’ interests with the interests of stockholders through equity-based compensation with performance-based and time-based vesting periods, and to promote the long-term retention of our executives and other key management personnel. | |
Benefits
|
| |
Fixed
|
| | To provide attractive benefits that promote employee (and potentially family) health and wellness. Benefits are provided at a level that is the same or similar to all employees. | |
Named Executive Officer
|
| |
Base Salary
at End of Fiscal Year 2019 |
| |
Base Salary
at End of Fiscal Year 2020 |
| |
Increase Over
Fiscal Year 2019 Base Salary |
| |||||||||
Joseph E. Scalzo
|
| | | $ | 736,450 | | | | | $ | 758,544 | | | | | | 3.0% | | |
Todd E. Cunfer
|
| | | $ | 400,000 | | | | | $ | 420,000 | | | | | | 5.0% | | |
David W. Ritterbush
|
| | | | N/A | | | | | $ | 500,000 | | | | | | N/A | | |
C. Scott Parker
|
| | | $ | 469,786 | | | | | $ | 483,880 | | | | | | 3.0% | | |
Timothy R. Kraft
|
| | | $ | 375,950 | | | | | $ | 387,228 | | | | | | 3.0% | | |
Performance Factor
|
| |
2020 Threshold
(in millions) |
| |
2020 Target
(in millions) |
| |
2020 Maximum
(in millions) |
| |
2020 Actual
(in millions) |
| |||||||||
Net Sales – Consolidated
|
| | | $ | 822.2 | | | |
$863.7
|
| | | $ | 948.6 | | | | | $ | 817.2 | | |
Net Sales – Quest
|
| | | $ | 289.4 | | | |
$308.2
|
| | | $ | 345.8 | | | | | $ | 286.8 | | |
Adjusted EBITDA – Consolidated(1)
|
| | | $ | 148.3 | | | |
$158.6 – $159.6
|
| | | $ | 181.1 | | | | | $ | 154.0 | | |
Quest Operating Performance(2)
|
| | | $ | 48.4 | | | |
$52.0
|
| | | $ | 59.2 | | | | | $ | 51.4 | | |
Payment Methodology – Net Sales and Adjusted EBITDA
|
| ||||||||||||||||||||||||||||||
| | |
Payment Levels as a Percent of Target
|
| |||||||||||||||||||||||||||
Performance Factor
|
| |
0%
|
| |
50%
|
| |
100%
|
| |
150%
|
| |
200%
|
| |||||||||||||||
Net Sales — Consolidated
|
| | | | <95% | | | | | | 95% | | | | | | 100% | | | | | | 105% | | | | | | 110% | | |
Adjusted EBITDA — Consolidated
|
| | | | <93% | | | | | | 93% | | | | | | 100% | | | | | | 107% | | | | | | 114% | | |
Net Sales — Quest
|
| | | | <94% | | | | | | 94% | | | | | | 100% | | | | | | 106% | | | | | | 112% | | |
Quest Operating Performance
|
| | | | <93% | | | | | | 93% | | | | | | 100% | | | | | | 107% | | | | | | 114% | | |
Name
|
| |
Base
Salary at Fiscal Year-End ($) |
| |
Target
Incentive (as Percentage of Base Salary) (%) |
| |
Target
Incentive ($)(1) |
| |
Performance
Factors and Weighting |
| |
Achievement
(%) |
| |
2020 Award
($) |
| |||||||||||||||
Joseph E. Scalzo
|
| | | $ | 758,544 | | | | | | 100% | | | | | $ | 758,544 | | | |
Net Sales (Consolidated) – 50%,
Adjusted EBITDA (Consolidated) – 50% |
| | | | 62% | | | | | $ | 471,000 | | |
Todd E.Cunfer
|
| | | $ | 420,000 | | | | | | 70% | | | | | $ | 294,000 | | | |
Net Sales (Consolidated) – 50%,
Adjusted EBITDA (Consolidated) – 50% |
| | | | 62% | | | | | $ | 182,000 | | |
David W. Ritterbush
|
| | | $ | 500,000 | | | | | | 100% | | | | | $ | 416,667 | | | |
Net Sales (Quest) – 50%,
Quest Operating Performance – 50% |
| | | | 62% | | | | | $ | 258,000 | | |
C. Scott Parker
|
| | | $ | 483,880 | | | | | | 60% | | | | | $ | 290,328 | | | |
Net Sales (Consolidated) – 50%,
Adjusted EBITDA (Consolidated) – 50% |
| | | | 62% | | | | | $ | 180,000 | | |
Timothy R. Kraft
|
| | | $ | 387,228 | | | | | | 60% | | | | | $ | 232,337 | | | |
Net Sales (Consolidated) – 50%,
Adjusted EBITDA (Consolidated) – 50% |
| | | | 62% | | | | | $ | 144,000 | | |
Award Type
|
| |
Fiscal Year 2020
Allocation Percentage |
| |
Alignment to Stockholder Interests
|
|
PSUs
|
| |
50%
|
| | Vesting depends on our performance at the end of a three-year performance period if specified relative total shareholder return (“TSR”) metrics are met | |
Stock Options
|
| |
25%
|
| |
Value of award depends on the appreciation of our stock price
|
|
RSUs
|
| |
25%
|
| | Value of award depends on our common stock price | |
| | |
Amount of
PSUs Vesting |
| |||
Performance Criteria: Relative TSR measured for each of the Company and each
company in the Russell 3000 Food & Beverage index using the immediately preceding 30-day average share price at the beginning and end of the Performance Period: |
| | | | | | |
Less than 25th percentile
|
| | | | 0% | | |
25th percentile
|
| | | | 25% | | |
50th percentile
|
| | | | 100% | | |
75th percentile
|
| | | | 200% | | |
Name
|
| |
Time-Based
Stock Options (#) |
| |
PSUs at Maximum
Vesting (#) |
| |
RSUs (#)
|
| |||||||||
Joseph E. Scalzo
|
| | | | 66,925 | | | | | | 35,058 | | | | | | 21,683 | | |
Todd E. Cunfer
|
| | | | 16,219 | | | | | | 8,496 | | | | | | 5,254 | | |
David W. Ritterbush(1)
|
| | | | 24,233 | | | | | | 12,694 | | | | | | 7,851 | | |
C. Scott Parker
|
| | | | 20,348 | | | | | | 10,659 | | | | | | 6,593 | | |
Timothy R. Kraft
|
| | | | 15,055 | | | | | | 7,886 | | | | | | 4,877 | | |
Position
|
| |
Stock Ownership Guidelines
|
|
Chief Executive Officer
|
| | Five Times (5.0x) Base Salary | |
Executive Officers, other than Chief Accounting Officer
|
| |
Three Times (3.0x) Base Salary
|
|
Senior Vice Presidents and the Chief Accounting Officer
|
| | One Time (1.0x) Base Salary | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Stock
Awards ($)(1) |
| |
Option
Awards ($)(2) |
| |
Non-Equity
Incentive Plan Compensation ($)(3) |
| |
All Other
Compensation ($)(4) |
| |
Total
($) |
| |||||||||||||||||||||
Joseph E. Scalzo
|
| | | | 2020 | | | | | | 751,311 | | | | | | 1,483,883 | | | | | | 526,700 | | | | | | 471,000 | | | | | | 19,212 | | | | | | 3,252,106 | | |
President and Chief Executive
|
| | | | 2019 | | | | | | 729,300 | | | | | | 704,192 | | | | | | 729,493 | | | | | | 1,472,900 | | | | | | 23,898 | | | | | | 3,659,783 | | |
Officer
|
| | | | 2018 | | | | | | 715,000 | | | | | | — | | | | | | — | | | | | | 925,925 | | | | | | 22,321 | | | | | | 1,663,246 | | |
Todd E. Cunfer
|
| | | | 2020 | | | | | | 417,500 | | | | | | 359,590 | | | | | | 127,644 | | | | | | 182,000 | | | | | | 17,383 | | | | | | 1,104,117 | | |
Chief Financial Officer
|
| | | | 2019 | | | | | | 395,360 | | | | | | 196,976 | | | | | | 204,050 | | | | | | 480,000 | | | | | | 11,339 | | | | | | 1,287,725 | | |
| | | | | 2018 | | | | | | 375,000 | | | | | | — | | | | | | 71,070 | | | | | | 306,000 | | | | | | 71,302 | | | | | | 823,372 | | |
David W. Ritterbush(5)(6)
|
| | | | 2020 | | | | | | 411,546 | | | | | | 537,290 | | | | | | 190,714 | | | | | | 258,000 | | | | | | 85,823 | | | | | | 1,483,373 | | |
President – Quest Nutrition
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
C. Scott Parker
|
| | | | 2020 | | | | | | 479,182 | | | | | | 451,171 | | | | | | 160,139 | | | | | | 180,000 | | | | | | 131,662 | | | | | | 1,402,154 | | |
Chief Marketing Officer
|
| | | | 2019 | | | | | | 465,225 | | | | | | 224,594 | | | | | | 232,671 | | | | | | 528,509 | | | | | | 131,353 | | | | | | 1,582,352 | | |
| | | | | 2018 | | | | | | 451,675 | | | | | | — | | | | | | — | | | | | | 367,163 | | | | | | 156,490 | | | | | | 975,328 | | |
Timothy R. Kraft(5)
|
| | | | 2020 | | | | | | 383,469 | | | | | | 333,777 | | | | | | 118,483 | | | | | | 144,000 | | | | | | 15,580 | | | | | | 995,309 | | |
Chief Legal Officer, Corp.
|
| | | | 2019 | | | | | | 372,300 | | | | | | 556,633 | | | | | | 186,196 | | | | | | 451,140 | | | | | | 16,169 | | | | | | 1,582,438 | | |
Secretary, Compliance Officer
|
| | | | | | | |
| | | | | | | | | | | |
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 (#) |
| |
All Other
Option Awards: Number of Securities Underlying Options (#)(3) |
| |
Exercise
or Base Price of Option Awards ($) |
| |
Grant
Date Fair Value of Stock and Option Awards ($)(4) |
| ||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Award
Description |
| |
Grant
Date |
| |
Threshold
($) |
| |
Target
($) |
| |
Maximum
($) |
| |
Threshold
(#) |
| |
Target
(#) |
| |
Maximum
(#) |
| |||||||||||||||||||||||||||||||||||||||||||||
Joseph E.
Scalzo |
| |
Annual Incentive
|
| | | | | | | | | | 379,272 | | | | | | 758,544 | | | | | | 1,517,088 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
PSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | 8,764 | | | | | | 35,058 | | | | | | 70,116 | | | | | | | | | | | | | | | | | | | | | | | | 960,239 | | |
| | |
Options
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 66,925 | | | | | | 24.15 | | | | | | 526,700 | | |
| | |
RSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21,683 | | | | | | | | | | | | | | | | | | 523,644 | | |
Todd E.
Cunfer |
| |
Annual Incentive
|
| | | | | | | | | | 147,000 | | | | | | 294,000 | | | | | | 588,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
PSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | 2,124 | | | | | | 8,496 | | | | | | 16,992 | | | | | | | | | | | | | | | | | | | | | | | | 232,705 | | |
| | |
Options
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16,219 | | | | | | 24.15 | | | | | | 127,644 | | |
| | |
RSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,254 | | | | | | | | | | | | | | | | | | 126,884 | | |
David W. Ritterbush
|
| |
Annual Incentive
|
| | | | | | | | | | 208,334 | | | | | | 416,667 | | | | | | 833,334 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
PSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | 3,173 | | | | | | 12,694 | | | | | | 25,388 | | | | | | | | | | | | | | | | | | | | | | | | 347,689 | | |
| | |
Options
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 24,233 | | | | | | 24.15 | | | | | | 190,714 | | |
| | |
RSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,851 | | | | | | | | | | | | | | | | | | 189,602 | | |
C. Scott
Parker |
| |
Annual Incentive
|
| | | | | | | | | | 145,164 | | | | | | 290,328 | | | | | | 580,656 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
PSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | 2,664 | | | | | | 10,659 | | | | | | 21,318 | | | | | | | | | | | | | | | | | | | | | | | | 291,950 | | |
| | |
Options
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20,348 | | | | | | 24.15 | | | | | | 160,139 | | |
| | |
RSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 6,593 | | | | | | | | | | | | | | | | | | 159,221 | | |
Timothy R. Kraft
|
| |
Annual Incentive
|
| | | | | | | | | | 116,169 | | | | | | 232,337 | | | | | | 464,674 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
PSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | 1,971 | | | | | | 7,886 | | | | | | 15,772 | | | | | | | | | | | | | | | | | | | | | | | | 215,998 | | |
| | |
Options
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15,055 | | | | | | 24.15 | | | | | | 118,483 | | |
| | |
RSUs
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,877 | | | | | | | | | | | | | | | | | | 117,780 | | |
| | | | | | | | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Grant
Date |
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable(1) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number
of Shares or Units of Stock That Have Not Vested (#)(2) |
| |
Market
Value of Shares or Units of Stock That Have Not Vested ($)(1) |
| |
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)(3) |
| |
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(4) |
| |||||||||||||||||||||||||||
Joseph E. Scalzo
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 35,058 | | | | | | 890,123 | | |
| | | | | 11/8/2019 | | | | | | — | | | | | | 66,925 | | | | | | 24.15 | | | | | | 11/8/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21,683 | | | | | | 550,531 | | | | | | | | | | | | | | |
| | | | | 11/8/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 59,027 | | | | | | 1,498,696 | | |
| | | | | 11/8/2018 | | | | | | 35,139 | | | | | | 70,279 | | | | | | 19.89 | | | | | | 11/8/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 7/14/2017 | | | | | | 1,200,000 | | | | | | — | | | | | | 12.00 | | | | | | 7/14/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Todd E. Cunfer
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 8,496 | | | | | | 215,713 | | |
| | | | | 11/8/2019 | | | | | | — | | | | | | 16,219 | | | | | | 24.15 | | | | | | 11/8/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,254 | | | | | | 133,399 | | | | | | | | | | | | | | |
| | | | | 11/8/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16,511 | | | | | | 419,214 | | |
| | | | | 11/8/2018 | | | | | | 9,829 | | | | | | 19,658 | | | | | | 19.89 | | | | | | 11/8/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 8/28/2017 | | | | | | 19,687 | | | | | | — | | | | | | 12.00 | | | | | | 8/28/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 7/14/2017 | | | | | | 132,147 | | | | | | — | | | | | | 12.00 | | | | | | 7/14/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | |
David W. Ritterbush
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 12,694 | | | | | | 322,301 | | |
| | | | | 11/8/2019 | | | | | | — | | | | | | 24,233 | | | | | | 24.15 | | | | | | 11/8/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,851 | | | | | | 199,337 | | | | | | | | | | | | | | |
C. Scott Parker
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 10,659 | | | | | | 270,632 | | |
| | | | | 11/8/2019 | | | | | | — | | | | | | 20,348 | | | | | | 24.15 | | | | | | 11/8/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 6,593 | | | | | | 167,396 | | | | | | | | | | | | | | |
| | | | | 11/8/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 18,826 | | | | | | 477,992 | | |
| | | | | 11/8/2018 | | | | | | 11,207 | | | | | | 22,416 | | | | | | 19.89 | | | | | | 11/8/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 7/14/2017 | | | | | | 223,943 | | | | | | — | | | | | | 12.00 | | | | | | 7/14/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Timothy R. Kraft
|
| | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,886 | | | | | | 200,226 | | |
| | | | | 11/8/2019 | | | | | | — | | | | | | 15,055 | | | | | | 24.15 | | | | | | 11/8/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 11/8/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,877 | | | | | | 123,827 | | | | | | | | | | | | | | |
| | | | | 11/8/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15,066 | | | | | | 382,526 | | |
| | | | | 11/8/2018 | | | | | | 8,969 | | | | | | 17,938 | | | | | | 19.89 | | | | | | 11/8/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 11/8/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 12,633 | | | | | | 320,752 | | | | | | | | | | | | | | |
| | | | | 7/16/2018 | | | | | | 66,569 | | | | | | 33,285 | | | | | | 16.75 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||
Name
|
| |
Number of Shares
Acquired on Exercise (#) |
| |
Value Realized on
Exercise ($) |
| |
Number of Shares
Acquired on Vesting (#) |
| |
Value Realized on
Vesting ($) |
| ||||||||||||
Joseph E. Scalzo
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Todd E. Cunfer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
David W. Ritterbush
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
C. Scott Parker
|
| | | | 15,000 | | | | | | 237,736 | | | | | | — | | | | | | — | | |
Timothy R. Kraft
|
| | | | — | | | | | | — | | | | | | 6,316 | | | | | | 152,531 | | |
Description
|
| |
Involuntary
Separation without Cause(1) ($) |
| |
Involuntary
Separation with Cause ($) |
| |
Change in
Control with Termination ($) |
| |
Termination
upon Disability ($) |
| |
Death
($) |
| |
Change in
Control without Termination(2) ($) |
| ||||||||||||||||||
Joseph E. Scalzo | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Severance(3)
|
| | | | 3,034,176 | | | | | | — | | | | | | 3,034,176 | | | | | | — | | | | | | — | | | | | | — | | |
Pro-rated Annual Incentive(4)
|
| | | | 471,000 | | | | | | 471,000 | | | | | | 471,000 | | | | | | 471,000 | | | | | | 471,000 | | | | | | — | | |
Acceleration of Equity(5)
|
| | | | 1,486,753 | | | | | | — | | | | | | 3,408,871 | | | | | | — | | | | | | — | | | | | | — | | |
Welfare Benefits
|
| | | | 26,598 | | | | | | | | | | | | 26,598 | | | | | | 26,598 | | | | | | | | | | | | | | |
Total | | | | | 5,018,527 | | | | | | 471,000 | | | | | | 6,940,645 | | | | | | 497,598 | | | | | | 471,000 | | | | | | — | | |
Description
|
| |
Involuntary
Separation without Cause(1) ($) |
| |
Change in
Control with Termination(1) ($) |
| |
Voluntary
Retirement(2) $ |
| |||||||||
Todd E. Cunfer | | | | | | | | | | | | | | | | | | | |
Severance
|
| | | | 1,071,000 | | | | | | 1,071,000 | | | | | | — | | |
Acceleration of Equity Awards
|
| | | | — | | | | | | 896,557 | | | | | | — | | |
Welfare Benefits
|
| | | | 26,331 | | | | | | 26,331 | | | | | | — | | |
Total
|
| | | | 1,097,331 | | | | | | 1,993,888 | | | | | | — | | |
David W. Ritterbush(3) | | | | | | | | | | | | | | | | | | | |
Severance
|
| | | | 2,008,000 | | | | | | 2,008,000 | | | | |
|
—
|
| |
Acceleration of Equity Awards
|
| | | | — | | | | | | — | | | | |
|
—
|
| |
Welfare Benefits
|
| | | | — | | | | | | — | | | | |
|
—
|
| |
Total
|
| | | | 2,008,000 | | | | | | 2,008,000 | | | | | | — | | |
C. Scott Parker | | | | | | | | | | | | | | | | | | | |
Severance
|
| | | | 1,161,312 | | | | | | 1,161,312 | | | | | | — | | |
Acceleration of Equity Awards
|
| | | | — | | | | | | 1,064,540 | | | | | | 360,640 | | |
Welfare Benefits
|
| | | | 31,384 | | | | | | 31,384 | | | | | | — | | |
Total
|
| | | | 1,192,696 | | | | | | 2,257,236 | | | | | | 360,640 | | |
Timothy R. Kraft | | | | | | | | | | | | | | | | | | | |
Severance
|
| | | | 929,347 | | | | | | 929,347 | | | | | | — | | |
Acceleration of Equity Awards
|
| | | | — | | | | | | 1,432,240 | | | | | | — | | |
Welfare Benefits
|
| | | | 30,287 | | | | | | 30,287 | | | | | | — | | |
Total
|
| | |
|
959,634
|
| | | |
|
2,391,874
|
| | | | | — | | |
Position
|
| |
Salary
|
| |
Annual
Incentive |
| |
Equity Awards
|
| |
All Other
Compensation |
| |
Total
|
| |||||||||||||||
President and CEO
|
| | | $ | 751,311 | | | | | $ | 471,000 | | | | | $ | 2,010,583 | | | | | $ | 19,212 | | | | | $ | 3,252,106 | | |
Median-Compensated Employee
|
| | | $ | 92,780 | | | | | $ | 12,740 | | | | | $ | — | | | | | $ | 5,401 | | | | | $ | 110,921 | | |
| | | | | | | | | | | | | | | | | | | | |
Pay Ratio:
|
| | | | 29:1 | | |
| | |
Number of Securities
to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a)(1) |
| |
Weighted-Average
Exercise Price of Outstanding Options, Warrants and Rights (b)(2) |
| |
Number of Securities
Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))(3) (c) |
| |||||||||
Equity compensation plans approved by stockholders
|
| | | | 3,269,178 | | | | | $ | 14.87 | | | | | | 5,154,012 | | |
Equity compensation plans not approved by stockholders
|
| | | | — | | | | | | — | | | | | | — | | |
Total equity compensation plans
|
| | | | 3,269,178 | | | | | $ | 14.87 | | | | | | 5,154,012 | | |
Name of Beneficial Owners(1)
|
| |
Number
of Shares Beneficially Owned |
| |
Approximate
Percentage of Outstanding Common Stock |
| ||||||
5% Stockholders: | | | | | | | | | | | | | |
Conyers Park Sponsor LLC(2)
|
| | | | 16,112,500 | | | | | | 16.83% | | |
The Vanguard Group(3)
|
| | | | 7,931,721 | | | | | | 8.31% | | |
Blackrock, Inc.(4)
|
| | | | 7,229,293 | | | | | | 7.6% | | |
Directors, Director Nominees and Named Executive Officers: | | | | | | | | | | | | | |
James M. Kilts(2)
|
| | | | 961,268 | | | | | | 1.0 | | |
David J. West(2)
|
| | | | 15,544 | | | | | | * | | |
Clayton C. Daley Jr.
|
| | | | 75,000 | | | | | | * | | |
Nomi P. Ghez
|
| | | | 140,350 | | | | | | * | | |
Michelle P. Goolsby
|
| | | | 13,970 | | | | | | * | | |
James E. Healey
|
| | | | 55,178 | | | | | | * | | |
Arvin H. Kash
|
| | | | 30,544 | | | | | | * | | |
Robert G. Montgomery
|
| | | | 50,544 | | | | | | * | | |
Brian K. Ratzan(2)
|
| | | | 81,254 | | | | | | * | | |
David W. Ritterbush
|
| | | | — | | | | | | * | | |
Joseph E. Scalzo(5)
|
| | | | 1,682,692 | | | | | | 1.7% | | |
Joseph J. Schena
|
| | | | — | | | | | | * | | |
James D. White
|
| | | | 6,333 | | | | | | * | | |
Todd Cunfer(6)
|
| | | | 193,146 | | | | | | * | | |
C. Scott Parker(7)
|
| | | | 346,305 | | | | | | * | | |
Timothy R. Kraft(8)
|
| | | | 99,652 | | | | | | * | | |
All directors and executive officers as a group (20 persons)(9)
|
| | | | 3,890,147 | | | | | | 4.0% | | |
(In thousands)
|
| |
52-Weeks
Ended August 29, 2020 |
| |
53-Weeks
Ended August 31, 2019 |
| ||||||
Net income
|
| | | $ | 34,700 | | | | | $ | 47,536 | | |
Interest expense
|
| | | | 32,813 | | | | | | 13,627 | | |
Interest income
|
| | | | (1,516) | | | | | | (3,826) | | |
Income tax expense (benefit)
|
| | | | 13,326 | | | | | | 16,750 | | |
Depreciation and amortization
|
| | | | 16,007 | | | | | | 7,644 | | |
EBITDA
|
| | | | 95,330 | | | | | | 81,731 | | |
Business transaction costs
|
| | | | 27,125 | | | | | | 7,107 | | |
Stock-based compensation expense
|
| | | | 7,636 | | | | | | 5,501 | | |
Inventory step-up
|
| | | | 7,522 | | | | | | — | | |
Integration of Quest
|
| | | | 10,742 | | | | | | — | | |
Restructuring
|
| | | | 5,527 | | | | | | 22 | | |
Non-core legal costs
|
| | | | 718 | | | | | | 4,851 | | |
Loss (gain) in fair value change of contingent consideration — TRA liability
|
| | | | — | | | | | | 533 | | |
Gain on settlement of TRA
|
| | | | — | | | | | | (1,534) | | |
Frozen licensing media
|
| | | | — | | | | | | — | | |
Other(1)
|
| | | | (688) | | | | | | 508 | | |
Adjusted EBITDA
|
| | | $ | 153,912 | | | | | $ | 98,719 | | |
(In thousands)
|
| |
August 29, 2020
|
| |||
Total debt outstanding under the Credit Agreement
|
| | | $ | 606,500 | | |
Less: cash and cash equivalents
|
| | | | (95,847) | | |
Net Debt
|
| | | $ | 510,653 | | |
Adjusted EBITDA
|
| | | | 153,912 | | |
Net Debt to Adjusted EBITDA
|
| | | | 3.3x | | |