sgc20170321_def14a.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 14
(Rule 14a-101)

 

INFORMATION REQUIRED IN PROXY STATEMENT

 

SCHEDULE 14A INFORMATION

 

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

 

Filed by the Registrant [X]

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))

[ X ]     Definitive Proxy Statement

[     ]     Definitive Additional Materials

[     ]     Soliciting Material Pursuant to §240.14a-12

 

Superior Uniform Group, 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):

[ X ]     No fee required.

[     ]     Fee computed on table below per Exchange Act Rules 14a-6(i)(1) 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:

   
   

 

5.

Total fee paid:

   
   

 

[   ]

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 or Schedule and the date of its filing.

 

 

1.

Amount previously paid:

     
     

  

 
 

 

 

 

2.

Form, Schedule or Registration Statement No.:

     
     

 

 

3.

Filing Party:

     
     

 

 

4.

Date Filed:

     
     

 

 
 

 

 

Superior Uniform Group, Inc.

10055 Seminole Boulevard

Seminole, FL 33772-2539   

 

 

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

TO BE HELD MAY 5, 2017

 

   

NOTICE IS HEREBY GIVEN that the Annual Meeting of the shareholders of SUPERIOR UNIFORM GROUP, INC. (the "Company") will be held at the offices of the Company, 10055 Seminole Boulevard, Seminole, Florida, 33772 on May 5, 2017 at 12:00 p.m. (Local Time) for the following purposes:

 

 

1.

To elect six Directors to hold office until the next annual meeting of shareholders and until their respective successors are duly elected or appointed and qualified; and

     

  

2.

To ratify the appointment of Mayer Hoffman McCann P.C. as our independent registered public accounting firm for the fiscal year ending December 31, 2017; and

     

 

3.

To transact such other business as may properly come before the meeting or any adjournment or postponement thereof.

 

The close of business on March 1, 2017 has been fixed as the record date for the determination of shareholders entitled to notice of and to vote at the meeting and any adjournment thereof.

 

You are cordially invited to attend the meeting. Whether or not you plan to attend the meeting, please cast your votes as instructed on your proxy card or voting instruction form as promptly as possible to ensure that your shares are represented and voted in accordance with your wishes.

 

By Order of the Board of Directors,

Seminole, Florida, March 24, 2017  

JORDAN M. ALPERT 

 

Secretary

 

IMPORTANT

TO ENSURE YOUR REPRESENTATION AT THIS MEETING PLEASE MARK,

DATE AND SIGN THE ENCLOSED PROXY AND RETURN IT PROMPTLY.

THANK YOU.

 

 
 

 

 

SUPERIOR UNIFORM GROUP, INC.

10055 Seminole Boulevard

Seminole, Florida 33772

 

PROXY STATEMENT FOR 2017

ANNUAL MEETING OF SHAREHOLDERS

 

This proxy statement and the accompanying form of proxy are first being sent to our shareholders on or about March 24, 2017 in connection with the solicitation by our Board of Directors of proxies to be used at our 2017 annual meeting of shareholders (the “Annual Meeting”). The Annual Meeting will be held on Friday, May 5, 2017, at 12:00 p.m. (Local Time) at the offices of Superior Uniform Group, Inc. (the “Company,” “we,” “our,” and “us”), 10055 Seminole Boulevard, Seminole, Florida 33772.

 

Our Board of Directors has designated Michael Benstock and Andrew D. Demott, Jr., and each or any of them, as proxies to vote the shares of common stock solicited on its behalf. If you sign and return the accompanying form of proxy, you may nevertheless revoke it at any time before it is exercised by (1) giving timely written notice to our Corporate Secretary, (2) timely delivering a later dated proxy, or (3) attending the Annual Meeting and voting in person. The shares represented by your proxy will be voted unless the proxy is mutilated or otherwise received in such form or at such time as to render it not votable. Proxies will be tabulated by Alliance Advisors.

 

If the Annual Meeting is adjourned for any reason, at any subsequent reconvening of the Annual Meeting all proxies may be voted in the same manner as the proxies would have been voted at the original convening of the Annual Meeting (except for any proxies that have been properly revoked or withdrawn).

 

The close of business on March 1, 2017 has been designated as the record date for the determination of shareholders entitled to receive notice of and to vote at the Annual Meeting (the “Record Date”). As of March 1, 2017, 14,562,092 shares of the Company's common stock, par value $.001 per share (the "Common Stock"), were issued and outstanding. Each shareholder will be entitled to one vote for each share of Common Stock registered in his or her name on the books of the Company on the close of business on the Record Date for the Annual Meeting on all matters that come before the Annual Meeting.

 

INTERNET AVAILABILITY OF PROXY MATERIALS

 

We are again pleased to take advantage of Securities and Exchange Commission rules allowing companies to furnish proxy materials to their shareholders over the Internet. We believe this e-proxy process expedites shareholders' receipt of proxy materials, while lowering the costs and reducing the environmental impact of our Annual Meeting.

 

On or around March 24, 2017, we provided our beneficial shareholders with a notice containing instructions on how to access our proxy statement and annual report and how to vote online.

 

All other shareholders will continue to receive a paper copy of the proxy statement, proxy card and annual report by mail. The proxy statement contains instructions on how you can (i) receive a paper copy of the proxy statement, proxy card and annual report if you only received a notice by mail or (ii) elect to receive your proxy statement and annual report over the Internet if you received them by mail this year.

 

INTERNET ACCESS OR ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS

 

If you have previously signed up to receive shareholder materials, including proxy statements and annual reports by mail, you may choose to receive these materials by accessing the Internet in the future, which can help us achieve a substantial reduction in our printing and mailing costs as well as be environmentally friendly. If you choose to receive your proxy materials by accessing the Internet, then before next year’s annual meeting, you will receive a Notice when the proxy materials and annual report are available over the Internet.

 

Your election to receive your proxy materials by accessing the Internet will remain in effect for all future shareholder meetings unless you revoke it before the meeting by contacting Melinda Barreiro at our offices at 10055 Seminole Boulevard, Seminole, Florida 33772, phone: (727) 397-9611, ext. 1523.

 

If you hold your shares in an account at a brokerage firm or bank participating in a “street name” program, you can sign up for delivery of proxy materials in the future by contacting your broker.

 

 
1

 

 

HOUSEHOLDING

 

The Securities and Exchange Commission’s rules permit us to deliver a single set of annual meeting materials to one address shared by two or more of our shareholders. This delivery method is referred to as “householding” and can result in significant cost savings. To take advantage of this opportunity, we have delivered only one Notice or proxy statement and annual report, as applicable, to multiple shareholders who share an address, unless we received contrary instructions from the impacted shareholders prior to the mailing date. We agree to deliver promptly, upon written or oral request, a separate copy of the Notice, proxy statement or annual report, as applicable, to any shareholder at a shared address to which a single copy of those documents was delivered. If you prefer to receive separate copies of the Notice, proxy statement or annual report (with respect to the Annual Meeting or in the future), contact Melinda Barreiro at our offices at 10055 Seminole Boulevard, Seminole, Florida, 33772, phone: (727) 397-9611, ext. 1523.

 

If you are currently a shareholder sharing an address with another shareholder and wish to receive only one copy of future Notices, proxy statements or annual reports for your household, please contact Melinda Barreiro at our offices at 10055 Seminole Boulevard, Seminole, Florida 33772, phone: (727) 397-9611, ext. 1523.

 

VOTING SECURITIES

Quorum

 

The Company’s Bylaws provide that the holders of a majority of the shares of the Company’s common stock issued and outstanding on the Record Date and entitled to vote must be present in person or by proxy at the Annual Meeting in order to have a quorum for the transaction of business. Abstentions will be counted as present for purposes of determining the presence of a quorum. Shares held by brokers, banks or other nominees for beneficial owners (which we refer to as “brokers”) will also be counted for purposes of determining whether a quorum is present if the broker has the discretion to vote on at least one of the matters presented, even though the broker may not exercise discretionary voting power with respect to other matters and even though voting instructions have not been received from the beneficial owner (a “broker non-vote”). Brokers have discretionary voting power with respect to the ratification of the appointment of Mayer Hoffman McCann P.C. as independent registered public accounting firm for 2017.

 

Votes Required

 

For Proposal 1, if a quorum is present, the six nominees for director receiving the highest number of affirmative votes of the shares present or represented and entitled to be voted for them shall be elected as directors. Abstentions and broker non-votes will not affect the outcome of the vote on such proposal.

 

The approval of Proposal 2 requires that the number of votes cast in favor of the proposal exceed the number of votes cast against the proposal. In order to ratify the appointment of Mayer Hoffman McCann P.C. as our independent registered public accounting firm for 2017, abstentions will be disregarded and will not be counted as votes for or against such proposal. However, since brokers may exercise discretionary voting power with respect to this proposal, a shareholder’s failure to provide voting instructions will not prevent a broker vote and can therefore affect the outcome of the auditor ratification proposal.

 

We note that your broker will NOT be able to vote your shares with respect to Proposal 1 if you have not provided voting instructions to your broker. We strongly encourage you to complete and submit your proxy card and exercise your right to vote as a shareholder.

 

 
2

 

 

ELECTION OF DIRECTORS (Proposal 1)

 

The Bylaws set the size of the Board of Directors at not less than three nor more than nine members. The size of the Board of Directors is currently set at six members. As described below, the Board of Directors is nominating six (6) Directors to be elected at the Annual Meeting. The Board of Directors determined to maintain its current size of six members, and, as it deems appropriate, seek to fill the vacancies resulting from nominating fewer nominees than authorized by the Company’s Bylaws. Directors generally hold their positions until the Annual Meeting at which time their term expires and their respective successors are duly elected and qualified.

 

The Board of Directors recommends that six (6) Directors be elected at the Annual Meeting to hold office until the Company's Annual Meeting in 2018 and until their successors are duly elected and qualified or until their earlier resignation, removal from office or death. The persons designated as nominees for election as director to serve the term described above are Sidney Kirschner, Michael Benstock, Alan D. Schwartz, Robin M. Hensley, Paul Mellini and Todd Siegel. See "Management - Directors and Executive Officers" for further information on such nominees. In the event any of the nominees should be unable to serve, which is not anticipated, the Board of Directors may designate substitute nominees, in which event the persons named in the enclosed proxy will vote for such other person or persons for the office of Director as the Board of Directors may recommend.

 

Shareholders may vote for up to six (6) nominees and the six (6) nominees receiving the highest number of votes shall be elected. Shareholders may not vote cumulatively in the election of Directors.

 

The Board of Directors recommends a vote “FOR” each of the nominees.

 

MANAGEMENT

 

Directors and Executive Officers

 

The following table sets forth the names and ages of the Company’s director-nominees and executive officers as of March 24, 2017 and the positions they hold with the Company. Executive officers serve at the pleasure of the Board of Directors.

 

Name

 

Age

Position

 

 

 

 

Sidney Kirschner

 

82

Chairperson of the Board and a member of the Audit, Corporate Governance, Nominating & Ethics, Compensation*, and Executive* Committees

Michael Benstock

 

61

Chief Executive Officer, Director, and a member of the Executive Committee

Alan D. Schwartz

 

66

Director and a member of the Executive Committee

Robin M. Hensley

 

60

Director and a member of the Audit* Committee

Paul Mellini

 

64

Director and a member of the Audit, Corporate Governance, Nominating & Ethics*, Compensation, and Capital Committees

Todd Siegel

 

58

Director and a member of Corporate Governance, Nominating & Ethics and Capital* Committees

Andrew D. Demott, Jr.

 

53

Chief Operating Officer, Chief Financial Officer and Treasurer

Peter Benstock

 

55

Executive Vice President

Dominic Leide

 

41

President, The Office Gurus and Vice President of Administration and Customer Support

Jordan M. Alpert

 

40

Vice President, General Counsel and Secretary

Philip Koosed

 

34

President, BAMKO, LLC

       

 

 

 

*Chairperson of the Committee

 

The following includes information about the skills, qualities, experience and attributes of each of the nominees and executive officers of the Company:

 

Sidney Kirschner is the Chairperson of the Board of Directors. He has served in this capacity since July 1, 2012. He has been a Director of the Company since September 25, 1996. Since April 2016 he has been executive vice president and chief philanthropy officer of Piedmont Healthcare. From December 2010 until April 2016 he was chief executive officer of Piedmont Physicians, a comprehensive healthcare provider in the Southeast region. From March 2006 until December 2010, he was Head of The Alfred and Adele Davis Academy, which is an educational institution for children from kindergarten through eighth grade. He retired in August 2004 as chairperson and chief executive officer of Northside Hospital, Inc., positions that he had held since November 1992. Prior thereto, he served as chairperson of the board and president and chief executive officer of National Service Industries, Inc. National Service Industries was a conglomerate, including operations in the textile rental business. He also currently serves as a director of Crown Crafts, Inc. Mr. Kirschner’s tenure and significant contributions on the Board of the Company, and his extensive experience as a chief executive, are the reasons for his nomination for re-election.

 

 
3

 

 

Michael Benstock has served as Chief Executive Officer of the Company since October 24, 2003. Mr. Benstock previously served as Co-President of the Company beginning May 1, 1992. Prior to such date, Mr. Benstock served as Executive Vice President of the Company. Mr. Benstock has served as a Director of the Company since 1985. He also serves as a director of USAmeriBank, Inc. and chair of its Audit Committee. Mr. Benstock’s vast experience with the Company is the reason for his nomination for re-election.

 

Alan D. Schwartz has been a Director of the Company since 1981. He has served as President of the Company since October 24, 2003 and as President of Fashion Seal Healthcare – Indirect since May 1, 2015. His responsibilities include leading the Company’s indirect healthcare efforts. Mr. Schwartz has announced his intention to retire effective March 31, 2017. Mr. Schwartz previously served as Co-President of the Company beginning May 1, 1992. Prior to such date, Mr. Schwartz served as Executive Vice President of the Company. Mr. Schwartz’s tenure and significant contributions on the Board of the Company and vast experience with the Company are the reasons for his nomination for re-election.

 

Robin M. Hensley has been a Director of the Company since July 28, 2000. She has served as president and business development coach of Raising the Bar since May 2004. Raising the Bar provides executive coaching, primarily in the area of business development. Previously, she was president of Personal Construction, LLC from January 2000 until May 2004. Prior thereto, she was vice president of Patton Construction from December 1995 to January 2000. Her background also includes experience in public accounting with Ernst & Young. Ms. Hensley’s contributions on the Audit Committee, as the chairperson and financial expert, and her extensive experience in executive coaching are the reasons for her nomination for re-election.

 

Paul Mellini has been a Director of the Company since May 7, 2004. He was a board member (treasurer) of the Economic Development Association of Citrus County and board member (treasurer) of Main Street, Crystal River until December 31, 2016. Mr. Mellini was chief executive officer and president of Nature Coast Bank in Citrus County, Florida from March 7, 2005 until January 1, 2017, chief executive officer and president of Premier Community Bank of Florida and Premier Community Bank of South Florida from January 2002 until August 2004 and chief executive officer and president of PCB Bancorp Inc. from January 2003 until August 2004. Prior thereto, he was regional president of First Union Bank of the Greater Bay Area from April 1995 to December 2001. Mr. Mellini’s tenure and significant contributions on the Board of the Company, and his extensive experience as a chief executive, are the reasons for his nomination for re-election.

 

Todd Siegel has been a Director of the Company since February 7, 2014. He served as president and chief executive officer of MTS Medication Technologies, Inc. from approximately 1992 to 2012, chairman from 1993 to 2009 and a director from approximately 1986 to 2012. MTS Medication Technologies was a publicly-held company through December 2009. Mr. Siegel previously served at MTS Medication Technologies in other capacities, including executive vice president, vice president of sales and marketing and corporate secretary. MTS Medication Technologies manufactures and markets pharmaceutical packaging automation and the related consumable supplies. Prior to his tenure with MTS Medication Technologies, Mr. Siegel was an account executive for AMI Diagnostic Service, a diagnostic imaging company, and held sales and national sales management positions with Chamberlin Corporation, a pharmaceutical manufacturer. Mr. Siegel’s extensive experience as chief executive, chairman, and director of a publicly-held company are the reasons for his nomination for election.

   

Andrew D. Demott, Jr. has served as Chief Operating Officer of the Company since May 1, 2015. He has served as Chief Financial Officer and Treasurer of the Company since May 5, 2010. He previously served as Executive Vice President beginning May 5, 2010. Prior to that, he served as Senior Vice President, Chief Financial Officer, and Treasurer of the Company since February 8, 2002. Prior to that, he served as Vice President, Chief Financial Officer, and Treasurer of the Company beginning June 15, 1998. Mr. Demott served as the Company’s Secretary from July 31, 1998 through June 14, 2002. Prior to such dates, Mr. Demott served as an Audit Senior Manager with Deloitte & Touche, LLP since September 1995. Prior to that date, Mr. Demott was an Audit Manager with Deloitte & Touche LLP since September 1992.

 

Peter Benstock has served as Executive Vice President of the Company since February 8, 2002 and as President of Fashion Seal Healthcare – Direct since May 1, 2015. His responsibilities include leading the Company’s direct healthcare efforts. Mr. Benstock previously was responsible for the Company’s sales efforts. Before he was an Executive Vice President, Mr. Benstock served as a Senior Vice President of the Company beginning February 7, 1994. Mr. Benstock was a Director of the Company from 1990 to August 2007.

 

Dominic Leide has served as the President of The Office Gurus, a subsidiary of the Company, since 2014.  Formerly, he served as Managing Director of The Office Gurus since 2010.   Mr. Leide also has served as Vice President of Administration and Customer Support of the Company since May 5, 2009.  Formerly, he served as U.S. Manager of near-shore operations of the Company since 2008 and Director of Customer Excellence of the Company since 2007.  Prior to that he served as Manager of Special Projects of the Company since 2006.  

 

Jordan M. Alpert has served as Vice President, General Counsel, and Secretary of the Company since November 7, 2011. Before that, he served as secretary since May 6, 2011 and general counsel since March 28, 2011. Mr. Alpert previously held the position of general counsel for Grand Army Entertainment, LLC during 2010. He also was an attorney with the firms Grais & Ellsworth LLP and Willkie, Farr & Gallagher LLP during 2001-2011. Mr. Alpert has been granted Authorized House Counsel status for the Company by the State of Florida. He is admitted to the New York Bar, Southern District of New York, and Eastern District of New York.

 

 
4

 

 

Philip Koosed has served as the President of BAMKO, LLC, a subsidiary of the Company, since substantially all of the assets of BAMKO, Inc. were acquired by the Company effective March 1, 2016. Mr. Koosed was the co-founder of and served as chief executive officer of BAMKO, Inc. from its inception in 1999 until March 1, 2016. Mr. Koosed co-founded BAMKO while an undergraduate business student at the University of Southern California.

 

 Honorary Directors

 

Gerald M. Benstock has served as Chairman Emeritus of the Board of Directors since May 2, 2013. Previously, Mr. Benstock had been Chairman of the Board of Directors between October 24, 2003 and June 30, 2012. Prior to October 24, 2003, he served as Chief Executive Officer of the Company. Prior to May 1, 1992, Mr. Benstock served as President of the Company. Mr. Benstock also served as a Director of the Company from 1951 to December 31, 2012.

 

The following family relationships exist among the Company's Directors, nominees and executive officers. Michael Benstock and Peter Benstock are sons of Gerald M. Benstock, and Alan D. Schwartz is his son-in-law.

 

BOARD LEADERSHIP STRUCTURE AND ROLE IN RISK OVERSIGHT

 

The Board does not have a policy on whether or not the roles of Chief Executive Officer and Chairperson of the Board should be separate and, if they are to be separate, whether the Chairperson of the Board should be selected from the non-employee Directors or be an employee. The Board believes that it should be free to make a choice from time to time in any manner that is in the best interests of the Company and its shareholders.

 

Sidney Kirschner serves as Chairperson of the Board and Michael Benstock serves as a Director and Chief Executive Officer. The Board of Directors believes this is the most appropriate structure for the Company at this time because it makes the best use of both individuals’ skills and experiences.

   

Companies face a variety of risks, including credit risk, liquidity risk, and operational risk. In fulfilling its risk oversight role, the Board focuses on the adequacy of the Company’s risk management process and overall risk management system. The Board believes an effective risk management system will (1) adequately identify the material risks that the Company faces in a timely manner, (2) implement appropriate risk management strategies that are responsive to the Company’s risk profile and specific material risk exposures, (3) integrate consideration of risk and risk management into business decision-making throughout the Company, and (4) include policies and procedures that adequately transmit necessary information with respect to material risks to senior executives and, as appropriate, to the Board or relevant committee.

 

The full Board also periodically receives information about the Company’s risk management system and the most significant risks that the Company faces. This is principally accomplished through management reports to the Board. The Board strives to generate serious and thoughtful attention to the Company’s risk management process and system, the nature of the material risks the Company faces, and the adequacy of the Company’s policies and procedures designed to respond to and mitigate these risks.

 

The Board encourages management to promote a corporate culture that understands risk management and incorporates it into the overall corporate strategy and day-to-day business operations. The Company’s risk management structure also includes an ongoing effort to assess and analyze the most likely areas of future risk for the Company. As a result, the Board periodically asks the Company’s executives to discuss the most likely sources of material future risks and how the Company is addressing any significant potential vulnerability.

 

DIRECTOR COMMITTEES AND MEETINGS

 

The Board of Directors held four (4) meetings during 2016. In 2016, each incumbent Director who was a director in 2016 attended at least 75% of all meetings of the Board and of each committee of which he/she was a member. The Company expects all members of the Board to attend the Company’s annual meeting of shareholders barring other significant commitments or special circumstances. All of the Company’s Board members who were directors at the time attended the Company’s 2016 annual meeting of shareholders.

 

The Board has a standing Audit Committee, Compensation Committee, Corporate Governance, Nominating & Ethics Committee, Capital Committee, and Executive Committee.

 

The Board has determined that Mr. Sidney Kirschner, Ms. Robin M. Hensley, Mr. Paul Mellini, and Mr. Todd Siegel are independent, as that term is defined by the applicable rules of the Securities and Exchange Commission and The NASDAQ Stock Market LLC® (“NASDAQ”). The Board has further determined that all members of the Audit, Compensation, and Corporate Governance, Nominating & Ethics are independent and satisfy the relevant Securities and Exchange Commission and NASDAQ independence requirements and other requirements for members of such committees.

 

The Board conducts an annual self-evaluation and an annual evaluation of the Audit Committee.

 

 
5

 

 

Audit Committee

 

The current members of the Audit Committee are Ms. Robin Hensley, Chairperson, and Messrs. Sidney Kirschner and Paul Mellini. The Audit Committee, which was established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, assists the Board of Directors in fulfilling the Board’s responsibilities relating to safeguarding of assets and oversight of the quality and integrity of the accounting, auditing and reporting practices of the Company. The Board of Directors has determined that each member of the Audit Committee is independent, as that term is defined in NASDAQ listing standards applicable to audit committee members. The Board has also determined that Robin Hensley qualifies as an “audit committee financial expert,” as defined in the rules of the Securities and Exchange Commission. The Audit Committee met five (5) times during 2016. The Audit Committee has a charter, which may be found on our website at www.superioruniformgroup.com under Investor Information.

   

 The Audit Committee conducts an annual self-evaluation.

 

Compensation Committee

 

The current members of the Compensation Committee are Messrs. Sidney Kirschner, Chairperson, and Paul Mellini. The Board of Directors has determined that each member of the Compensation Committee is independent as defined by NASDAQ listing standards applicable to compensation committee members. The Compensation Committee met two (2) times during 2016. The Compensation Committee has a charter, which can be found on our website at www.superioruniformgroup.com under Investor Information.

 

The duties and responsibilities of the Compensation Committee include to:

 

     determine and approve the compensation of the Company's Chief Executive Officer;

     make recommendations to the Board with respect to executive compensation for executive officers other than the Chief Executive Officer;

     review, approve, and administer incentive compensation plans and equity-based plans for executive officers, staff vice presidents, and director level employees;

     review the Company’s incentive compensation arrangements to determine whether they encourage excessive risk-taking, to review and discuss at least annually the relationship between risk management policies and practices and compensation, and to evaluate compensation policies and practices that could mitigate any such risk; and

     report regularly to the Board regarding its actions and make recommendations to the Board as appropriate.

 

Under its charter, the Compensation Committee may form and delegate any of its responsibilities to subcommittees, which in turn must consist of at least 2 members of the Compensation Committee.

 

Our Chief Executive Officer currently initiates the compensation discussions with the Compensation Committee, providing requests and seeking approval from the Committee and the Board of Directors before employment arrangements or bonus plans related to executives of the Company are finalized.  The Compensation Committee approves the annual incentive award for the Chief Executive Officer and each officer below the Chief Executive Officer level based on the Chief Executive Officer's recommendations. The Compensation Committee also reviews on an annual basis the compensation of directors for service on the Board and recommends changes to such compensation to the Board, which makes the ultimate decision on director compensation. In recommending director compensation, the Compensation Committee may take into account market studies performed by compensation consultants. For additional information regarding the Compensation Committee’s processes and procedures for determining executive and director compensation, please see the footnotes to the Summary Compensation Table and Director Compensation for 2016 in the section entitled “Executive and Director Compensation” below.

 

As part of its decision-making process, the Compensation Committee reviews compensation practices at peer companies in an effort to set total compensation levels that it believes are reasonably competitive. 

 

The Compensation Committee conducts an annual self-evaluation.

 

Corporate Governance, Nominating & Ethics Committee

 

The current members of the Corporate Governance, Nominating & Ethics Committee are Messrs. Paul Mellini, Chairperson, Sidney Kirschner, and Todd Siegel. The Board of Directors has determined that each member of the Corporate Governance, Nominating & Ethics Committee is independent as defined by NASDAQ listing standards applicable to directors generally.

   

The Corporate Governance, Nominating & Ethics Committee develops and recommends to the Board of Directors a set of corporate governance principles applicable to the Company. It also assists in identifying qualified individuals to become directors and recommends to the Board candidates for all director positions to be filled by the Board or by shareholders of the Company. The Corporate Governance, Nominating & Ethics Committee held two (2) meetings during 2016. The Corporate Governance, Nominating & Ethics Committee has a charter, which can be found on our website at www.superioruniformgroup.com under Investor Information.

 

 
6

 

  

The Corporate Governance, Nominating & Ethics Committee has recommended the candidates to be nominated to stand for election to the Board of Directors at the Annual Meeting.

 

The Corporate Governance, Nominating & Ethics Committee conducts an annual self-evaluation.

 

Capital Committee

 

The current members of the Capital Committee are Messrs. Todd Siegel, Chairperson, and Paul Mellini, both of whom are independent as defined by NASDAQ listing standards applicable to directors generally.

   

The Capital Committee carries out the capital-related responsibilities delegated by the Board. It also reviews and recommends to the Board policy regarding dividends and share repurchase. The Capital Committee met two (2) times in 2016. The Capital Committee has a charter, which can be found on our website at www.superioruniformgroup.com under Investor Information.

 

The Capital Committee conducts an annual self-evaluation.

 

Executive Committee

 

The current members of the Executive Committee are Messrs. Sidney Kirschner, Chairperson, Michael Benstock, and Alan D. Schwartz. The Executive Committee is authorized to act in place of the Board of Directors during periods between Board meetings. The Executive Committee did not hold any formal meetings during 2016. The Executive Committee acted by unanimous written consent on six (6) occasions during 2016. Each action taken by the Executive Committee pursuant to a unanimous written consent was subsequently reviewed and ratified by the Board of Directors.

 

Nominations of Directors

 

The Board selects the director nominees to stand for election at the Company’s annual meetings of shareholders and to fill vacancies occurring on the Board based on the recommendations of the Corporate Governance, Nominating & Ethics Committee. In identifying and evaluating potential nominees to serve as directors, the Corporate Governance, Nominating & Ethics Committee will examine each nominee on a case-by-case basis regardless of who recommended the nominee and take into account all factors it considers appropriate. However, the Corporate Governance, Nominating & Ethics Committee believes the following minimum qualifications must be met by a director nominee to be recommended to the Board:

 

     Each director must display high personal and professional ethics, integrity and values.

     Each director must have the ability to exercise sound business judgment.

     Each director must be highly accomplished in his or her respective field, with broad experience at the executive and/or policy-making level in business, government, education, technology or public interest.

     Each director must have relevant expertise and experience, and be able to offer advice and guidance based on that expertise and experience.

     Each director must be able to represent all shareholders of the Company and be committed to enhancing long-term shareholder value.

     Each director must have sufficient time available to devote to activities of the Board and to enhance his or her knowledge of the Company’s business.

 

The Board also believes the following qualities or skills are necessary for one or more directors to possess:

 

     At least one independent director should have the requisite experience and expertise to be designated as an “audit committee financial expert” as defined by applicable rules of the Securities and Exchange Commission and which results in the director’s “financial sophistication” as defined by the rules of the NASDAQ Stock Market.

     One or more of the directors generally should be active or former chief executive officers of public or private companies or leaders of major organizations, including commercial, scientific, government, educational and other similar institutions.

     Directors should be selected so that the Board is a diverse body. 

 

The Company believes that it is important for its Board to be comprised of individuals with diverse backgrounds, skills and experiences, and to ensure a fair representation of shareholder interests. To maintain a diverse mix of individuals, primary consideration is given to the depth and breadth of members’ business and civic experience in leadership positions, as well as their ties to the Company’s markets and other similar factors. The Corporate Governance, Nominating & Ethics Committee does not have a formal diversity policy. It identifies qualified potential candidates without regard to any candidate’s race, color, disability, gender, national origin, religion or creed.

 

 
7

 

    

The Company has a mandatory retirement policy for its directors. The policy states that:  No person shall be nominated by the Board of Directors to serve as a director after he or she has passed his or her 72nd birthday; except that anyone serving on the Board as of February 6, 2015, the date this policy was adopted, may remain on the Board until completion of the term that encompasses his or her 74th birthday or completion of the term that concludes at least five but no more than six years after this policy is adopted, whichever will result in a longer Board tenure.

 

The Corporate Governance, Nominating & Ethics Committee will consider recommendations for directorships submitted by shareholders. Recommendations for consideration by the Corporate Governance, Nominating & Ethics Committee, including recommendations from shareholders of the Company, should be sent in writing to the Board of Directors, care of the Secretary of the Company, at the Company’s headquarters. Such nominations must include a description of the specific qualifications the candidate possesses and a discussion as to the effect on the composition and effectiveness of the Board.

 

Compensation Committee Interlocks and Insider Participation

 

Messrs. Sidney Kirschner and Paul Mellini served as members of the Compensation Committee during the fiscal year ended December 31, 2016. Neither of these individuals is or has ever been an officer or employee of the Company or any of its subsidiaries. In addition, neither of these individuals has had any relationship requiring disclosure by the Company under any paragraph of Item 404 of SEC Regulation S-K. During the fiscal year ended December 31, 2016, none of the Company’s executive officers served as a member of the Board of Directors or the compensation committee (or other board committee performing equivalent functions) of any other entity that had one or more executive officers serving as members of our Board of Directors or Compensation Committee.

 

Code of Business and Ethical Conduct

 

The Company has adopted a Code of Business and Ethical Conduct, which sets forth the guiding principles and rules of behavior by which we operate our Company and conduct our daily business with our customers, vendors, shareholders and employees. This Code applies to all of the directors, officers (including the Company's principal executive officer, principal financial officer and controller) and employees of the Company.

 

The purpose of the Code of Business and Ethical Conduct is to promote honest and ethical conduct and compliance with the law. The law in many cases is about what we can do; what is legally permissible. We consider it important to focus on what we should do and what ethical principles we should embrace in guiding our behavior to engender trust and loyalty within our work forces and with all our key stakeholders, customers, suppliers, dealers and investors. The Code of Business and Ethical Conduct can be found on our website at www.superioruniformgroup.com under Investor Information. We will post any amendments to the Code of Business and Ethical Conduct, as well as any waivers that are required to be disclosed by the rules of either the SEC or NASDAQ, on such website.

   

 Communications with Board of Directors

 

Shareholders may communicate with the full Board or individual Directors by submitting such communications in writing to Superior Uniform Group, Inc., Attention: Board of Directors (or the individual director(s)), 10055 Seminole Boulevard, Seminole, Florida 33772. Such communications will be delivered directly to the Directors.

 

EXECUTIVE COMPENSATION

 

Compensation Discussion and Analysis

 

The Compensation Committee of the Board of Directors has overall responsibility for establishing, implementing and monitoring the Company’s compensation structure, policies and programs. The Compensation Committee oversees the design and implementation of strategic compensation programs for the Company’s executive officers and others and is responsible for assessing and approving the total compensation paid to the Company’s chief executive officer; in practice, the Compensation Committee also assesses and approves the chief executive officer’s compensation recommendations for other executive officers, staff vice presidents, and director level employees. For all of these positions, the Compensation Committee determines whether the compensation paid under the Company’s programs is fair, reasonable and competitive. The Compensation Committee’s chairperson regularly reports to the Board of Directors on Compensation Committee actions and recommendations. The board’s Compensation Committee has authority to retain, at the Company’s expense, outside counsel, compensation consultants and other advisors to assist as needed.

 

The individuals who served as the Company’s chief executive and chief financial officers during fiscal year 2016, as well as the other individuals included in the Summary Compensation Table below, are referred to individually, as an “executive” or “executive officer”, and collectively as the “named executive officers.” With respect to the named executive officers, this Compensation Discussion and Analysis identifies the Company’s current compensation philosophy and objectives and describes the various methodologies, policies and practices for establishing and administering the compensation programs of the named executive officers.

 

 
8

 

 

Compensation Philosophy and Objectives

 

The Compensation Committee believes that the most effective executive compensation programs are those that align the interests of the Company’s named executive officers with those of its shareholders. The Compensation Committee further believes that a properly structured compensation program will attract and retain talented individuals and motivate them to drive shareholder value and achieve specific short- and long-term strategic objectives, and that a significant percentage of executive pay should be based on the principle of pay-for-performance. However, the Compensation Committee also recognizes that the Company must maintain its ability to attract highly talented executives. For this reason, an important objective of the Compensation Committee is to ensure that the Company’s compensation program is competitive with its peer-group companies (the “compensation peer group”).

 

The Company’s executive compensation program is designed to provide:

 

 

levels of base compensation that are competitive with comparable companies;

 

annual incentive compensation that varies in a manner consistent with the achievement of individual performance objectives and financial results of the Company;

 

long-term incentive compensation that focuses executive efforts on building shareholder value through meeting longer-term financial and strategic goals; and

 

benefits that are meaningful and competitive with comparable companies and the relevant market.

   

In designing and administering the Company’s executive compensation program, the Compensation Committee attempts to strike an appropriate balance among these various elements. The Compensation Committee considers the pay practices of the compensation peer group to determine the appropriate pay mix and compensation levels. With respect to performance-based pay, the Compensation Committee believes that executive compensation should be closely tied to financial performance and the individual performance and responsibility level of the particular executive officer. The Compensation Committee also believes that the Company’s executive compensation program should include a significant equity-based component because it best aligns the executives’ interests with those of the Company’s shareholders. For purposes of retention, the Compensation Committee believes that the equity-based component should have meaningful conditions to encourage valued employees to remain in the employ of the Company. Finally, the Compensation Committee also considers other forms of executive pay as a means to attract, retain and motivate highly qualified executives.

 

Process for Establishing Compensation

 

The Compensation Committee is comprised of two independent directors, both of whom satisfy the NASDAQ listing requirements and relevant SEC regulations. There are no interlocking relationships between any member of the Compensation Committee and any of our executive officers. None of the Compensation Committee members is an officer, employee or former officer or employee of the Company.

 

The Compensation Committee is responsible for all compensation decisions for the chief executive officer and, in conjunction with the Board of Directors, the other executive officers. The chief executive officer annually reviews the performance of the other executive officers, including consideration of market pay practices of the compensation peer group, if available, in conjunction with both Company and individual performance. The conclusions and recommendations of the chief executive officer for compensation of the other executive officers are presented to the Compensation Committee for review and approval. The Compensation Committee has absolute discretion as to whether it recommends to the Board of Directors for approval these recommendations or makes adjustments as it deems appropriate. The Compensation Committee also adheres to this process for staff vice presidents and director level employees.

 

Role of the Independent Compensation Consultant

 

Robert Kurisu first served as the Compensation Committee’s independent executive compensation consultant in 2009. The compensation consultant’s responsibilities include, but are not limited to, providing compensation market data, reviewing the Company’s compensation information, reviewing the design of the executive compensation program periodically, participating in meetings of the Compensation Committee, providing independent analysis of CEO compensation, and providing advice to the Compensation Committee, as requested. The Compensation Committee has the sole authority to hire and terminate Mr. Kurisu, and may seek advice from Mr. Kurisu without the involvement of management.   

 

 
9

 

  

After review and consultation with Mr. Kurisu, the Compensation Committee determined that Mr. Kurisu is independent and that there is no conflict of interest from retaining Mr. Kurisu currently or during the 2016 fiscal year. 

 

The Elements of Compensation

 

Total direct compensation includes cash, in the form of base salary and annual incentives, and long-term equity incentives and indirect compensation in the form of benefits. The Compensation Committee evaluates the mix between these three elements based on the pay practices of comparable companies and other considerations supporting the Company’s general compensation philosophy and objectives.

 

The companies included in the compensation peer group are selected primarily on the basis of their comparability to the Company based on size, as measured through annual revenue, market capitalization and other financial measures. Although the Compensation Committee also considers and reviews information from proxy statements and other relevant survey data, it particularly focuses on the practices of the compensation peer group in considering compensation levels for the chief executive officer and chief financial officer. Our Compensation Committee uses peer group information as a point of reference, but does not benchmark or target compensation levels against the peer group. The Compensation Committee considers the opinions and recommendations of the chief executive officer, chief financial officer and various outside advisers, and strives to be fully informed in its determination of the appropriate compensation mix and award levels for the named executive officers. All compensation decisions take into consideration the Compensation Committee’s guiding principles of fairness to employees, retention of talented executives and fostering improved Company performance, which it believes will ultimately benefit the Company’s shareholders. In addition, compensation decisions take into consideration the most recent advisory vote of the Company’s shareholders with respect to the compensation of the named executive officers. In our 2016 annual meeting of shareholders, approximately 81% of the votes cast approved such compensation.

 

With respect to the named executive officers, the following describes in greater detail the objectives and policies behind the various elements of the compensation mix.

 

Base Salary

 

It is the Company’s philosophy that employees be paid a base salary that is competitive with the salaries paid by comparable organizations based on each employee’s experience, performance, value and geographic location. Generally, the Company has chosen to position cash compensation at levels which will allow the Company to remain competitive in attracting and retaining executive talent. The allocation of total cash between base salary and incentive bonus awards is based on a variety of factors. The Compensation Committee considers a combination of the executive’s performance, the performance of the Company and the individual business or corporate function for which the executive is responsible, the nature and importance of the position and role within the Company, the scope of the executive’s responsibility and the current compensation package in place for the executive, including the executive’s current annual salary and potential bonus awards under the Company’s short-term incentive plan. The Company deviates from this process when an executive’s compensation is set pursuant to the terms of an asset purchase agreement or similar transaction; this did not apply this year. The Compensation Committee generally evaluates executive salaries annually.

 

Annual Incentive Bonus

 

The Company intends to continue its strategy of compensating the named executive officers through programs that emphasize performance-based incentive compensation. The Company’s short-term incentive compensation program is designed to recognize and reward named executive officers (and other employees) who contribute meaningfully to the Company’s profitability at the corporate level and increase in shareholder value.

 

In general, the annual incentive bonus ties incentive compensation to net earnings per share as reported in the Company’s audited financial statements adjusted for certain items (“BEPS”) and achievement of individual goals. BEPS is further allocated to the business unit level and each individual receives a percentage based on the level of involvement with that business unit. Under this plan, the Compensation Committee establishes a minimum BEPS target that must be reached before any bonuses are earned. The target BEPS is based upon the annually established financial growth plan and goal. The Compensation Committee also establishes for each participant in the plan, including named executive officers, individual target incentive amounts (“TIA”) that may be earned, in whole or in part, depending upon whether the minimum BEPS target is reached and by how much it is exceeded during the fiscal year. At the minimum target BEPS level, the plan participants will earn a bonus equal to 20% of the TIA. The payout continues to increase as BEPS increases and there is no maximum bonus payment. The BEPS level for 100% payout of the TIA in 2016 was equal to $0.82 per share. For 2016, the TIA (as a percentage of base salary) were as follows: Mr. M. Benstock, 60%; Mr. Demott, 40%; Mr. Schwartz, 40%; Mr. P. Benstock, 40%; and Mr. Leide, 35%. Mr. Leide has two components to his bonus plan: fifty percent of his bonus is determined based upon his calculated BEPS and fifty percent is based upon a percentage of sales and profit growth for The Office Gurus. The BEPS based bonus is calculated as follows: base salary multiplied by TIA, multiplied by BEPS percentage, multiplied by percentage completion of individual goals.   

 

 
10

 

 

 

For fiscal year 2016, the Company’s BEPS was $1.14. Any incentive compensation earned under this plan for the 2016 fiscal year was paid in February 2017. 

 

The Company also, from time-to-time, awards discretionary annual bonuses to executives (and other employees). These bonuses are designed to further the Company’s compensation philosophy and objectives, including retaining and rewarding valuable employees.

 

Long-Term Incentive Awards

 

Long-term incentive awards are an important component of the Company’s total compensation package. The Compensation Committee believes that equity-based compensation ensures that the Company’s named executive officers have a continuing stake in the long-term success of the Company. Accordingly, the Company’s named executive officers (and other employees) may participate in the 2013 incentive stock and awards plan (the “2013 Stock and Awards Plan” or the “2013 Plan”), which provides for grants of equity incentive awards, including stock options, performance shares, performance units, stock awards, stock appreciation rights and other stock-based awards. Awards may be granted under the 2013 Plan from time to time until May 2, 2023, unless the 2013 Plan is terminated prior to that date. The Compensation Committee approves all awards under the 2013 Plan and acts as the administrator of the 2013 Plan.

 

Award levels under the 2013 Plan for the chief executive officer and chief financial officer are determined based on the compensation practices of the compensation peer group, retention of these executives, fairness, fostering improved Company performance and other considerations; award levels under the 2013 Plan for the other executives are determined based on retention of these executives, fairness, fostering improved Company performance and other considerations. In general, long-term incentive awards affected by reference to our compensation peer group are targeted at the median of the compensation peer group with appropriate adjustments for individual and Company performance. In general, stock options and stock appreciation rights (“SARs”) granted under the 2013 Plan vest immediately, have a 5-year term and have an exercise price equal to the fair market value of the Company’s common stock at closing on the date of grant. For restricted stock, the shares generally are held by the Company’s transfer agent until restrictions lapse. Participants generally are entitled to any dividends payable on their restricted stock and to vote their shares. Restricted stock cannot be sold or transferred until the shares vest. Should an executive officer leave the Company prior to the completion of the applicable vesting schedule, the unvested portion of the grant is forfeited, with certain exceptions.

 

Historically, the determination of whether equity compensation awards will be granted is made promptly following the conclusion of the prior fiscal year because the awards are made (or not) based upon the Compensation Committee’s assessment of the Company’s overall performance for such period, as well as the committee’s assessment of the individual’s overall performance over the same time. This determination is generally made considering the totality of the circumstances and not necessarily on the basis of one or more specified performance metrics.

  

The Company also may award performance shares to certain executive officers. These grants are based on the employee’s satisfactory achievement of certain performance-based metrics.

  

Broad-Based Benefits Programs

 

The named executive officers are entitled to participate in certain benefits programs that are available to all full-time employees. These benefits include health, dental, vision, disability and life insurance, and paid vacation. Certain executive officers also are eligible to participate in other benefits programs that are available to all full-time employees or which were available to all full-time employees at the time the executive officer accrued the benefit, including a pension plan, a nonqualified deferred compensation plan and a Company-sponsored 401(k) plan, the latter two of which the Company may contribute and/or match participant contributions. The Company’s 401(k) and/or nonqualified deferred compensation plans contain a discretionary company contribution element; no named executive officer received a company contribution in 2016. The Company provides for matching contributions by the Company for each plan participant in the 401(k) plan in an amount equal to 25% of the first 4% of the employee’s deferred compensation.

 

Other Benefits Programs

 

Certain executive officers also are entitled to participate in benefits programs that are not available to all full-time employees. These benefits include a nonqualified and unfunded supplemental employee retirement plan and a supplemental medical plan.

 

 
11

 

 

Named Executive Officers

 

Executive officers of the Company are elected or appointed by the Board of Directors and hold office until their successors are elected or until their earlier death, resignation or removal. Named executive officers are identified based on SEC rules. The named executive officers of the Company are as follows:

 

Name

Title

Michael Benstock

Chief Executive Officer

Andrew D. Demott, Jr.

Chief Operating Officer, Chief Financial Officer and Treasurer

Alan D. Schwartz

President

Peter Benstock

Executive Vice President

Dominic Leide

President, The Office Gurus and Vice President of Administration and Customer Support

 

Evaluation of Chief Executive Officer Compensation and Executive Performance

 

Compensation of Chief Executive Officer

 

The Compensation Committee meets first on its own and then with the other independent directors each year in executive session to evaluate the performance of the Company’s chief executive officer. A written compensation study is provided to the committee in advance of the committee’s consideration of the chief executive officer’s compensation. The Compensation Committee does not confer with the chief executive officer or any other members of management when setting the chief executive officer’s base salary. The Compensation Committee also considers the pay practices of the compensation peer group, information provided by the independent compensation consultant (upon request by the committee), and the Company’s philosophy and objectives when setting the chief executive officer’s compensation, including, but not limited to, fairness, retention, and driving shareholder value. The Compensation Committee does not rely solely on predetermined formulas or a limited set of criteria when it evaluates the performance of the chief executive officer.

 

Compensation of Other Executive Officers

 

The chief executive officer meets with the Compensation Committee to review his compensation recommendations for the other executive officers. The chief executive officer describes the findings of his performance evaluations of all such persons and provides the basis of his recommendations to the Compensation Committee, including the scope of each person’s duties, oversight responsibilities and individual objectives and goals against results achieved. In its analysis of the other executive officers, the Compensation Committee applies the same or similar considerations to this group as it applies when considering the chief executive officer’s base salary. The Compensation Committee does not rely solely on predetermined formulas or a limited set of criteria when it evaluates the performance of the executive officers.

 

Administrative Policies and Practices

 

To evaluate and administer the compensation programs of the chief executive officer and other executive officers, the Compensation Committee meets periodically each year in conjunction with regularly scheduled board meetings. The Compensation Committee also holds special meetings and meets telephonically to discuss extraordinary items as necessary.

  

Summary Compensation Table

 

The following table sets forth all compensation paid or accrued during fiscal years 2016, 2015 and 2014 to the named executive officers. All share and per share information in the footnotes to this table have been adjusted to give retroactive effect to the 2-for-1 stock split effective on February 4, 2015.

  

 
12

 

 

SUMMARY COMPENSATION TABLE

 

 

 

 

 

 

 

 

 

 

 

 

Name and

 

Salary

Bonus

Stock

awards

Option

awards

Non-equity

incentive

plan

compensation

Change in

pension value

and

nonqualified

deferred

compensation

earnings

All other

compensation

Total

 

principal position

Year

($)

($) (1)

($) (2)

($) (3)

($) (4)

($) (5)

($) (6)

($)

 

Michael Benstock

2016

523,387

 

 

78,575

642,244

601,716

35,311

1,881,233

 

Chief Executive

2015

513,133

 

83,200

659,766

485,655

16,508

1,758,262

 

Officer

2014

467,292

 

257,600

80,800

591,435

579,827

20,290

1,997,244

 

 

 

 

 

 

 

 

 

 

 

 

Andrew D. Demott, Jr.

2016

344,889

 

 

67,350

338,569

203,634

22,875

977,317

 

Chief Operating Officer,

2015

324,454

 -

 

62,400

337,993

245,106

20,506

990,459

 

Chief Financial Officer and

2014

284,934

 

147,200

60,600

360,631

156,487

21,850

1,031,702

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Alan D. Schwartz

2016

400,018

 

 

67,350

225,076

10,125

30,146

732,715

 

President

2015

387,058

35,000

 

70,720

257,503

385,843

19,691

1,155,815

 

 

2014

375,794

 

184,000

68,680

387,892

505,045

21,062

1,542,473

 

 

 

 

 

 

 

 

 

 

 

 

Peter Benstock

2016

311,550

25,000

 

44,900

-

48,523

26,327

456,300

 

Executive Vice President

2015

305,447

 

 

62,400

61,146

210,755

23,849

663,597

 

 

2014

296,551

 

147,200

60,600

189,318

180,821

23,185

897,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominic Leide

2016

160,535

250,000

545,011

44,900

72,813

4,792

10,754

1,088,805

 

President, The Office Gurus and

2015

155,961

 

 

41,600

183,791

-

10,100

391,452

 

Vice President of Administration

2014

149,703

 

 

40,400

116,072

17,952

10,518

334,645

 

and Customer Support

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) On February 14, 2011, Mr. Leide was granted a long-term performance bonus to be awarded if Mr. Leide remained continuously employed until February 1, 2016. Other than as disclosed in this column, no other discretionary bonuses were earned during the periods indicated.

 

(2) On February 7, 2014, Mr. M. Benstock, Mr. Demott, Mr. Schwartz and Mr. P. Benstock were awarded 35,000, 20,000, 25,000 and 20,000 restricted shares, respectively, of the Company’s common stock. These shares were unvested as of December 31, 2016 and vested on February 7, 2017. On February 5, 2016, Mr. Leide was granted 16,667 performance shares that vest on February 5, 2021 provided he remains continually employed by the Company until vesting. In addition, Mr. Leide received a grant of 16,667 performance shares that vest on February 5, 2021 provided he meets certain revenue goals over the vesting period and remains continually employed by the Company until vesting. The amounts reported represent the grant date fair value of the award measured in accordance with FASB ACS Topic 718. Refer to Note 12 – Share Based Compensation in the Notes to Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2016 for the relevant assumptions used to determine the valuation.

 

(3) The dollar amounts represent the fair value of the awards granted during each of the years presented in accordance with FASB ASC Topic 718. Refer to Note 12 – Share-Based Compensation in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2016 for the relevant assumptions used to determine the valuation of our share-based awards.

 

(4) The amounts in this column include incentive bonuses earned during the respective calendar year. These amounts are paid during February of the following year. See "Compensation Discussion and Analysis" and the Grants of Plan-Based Awards table for more information regarding the annual incentive bonus.  

 

 
13

 

 

(5) The amounts reported reflect the aggregate change in the actuarial present value of each named executive officer's accumulated benefit under the defined benefit pension plans in which they participate. The change in pension value reflects changes in age, service and earnings during 2016. The amount for Mr. Leide in 2015 was negative $635. The Company did not pay above-market or preferential rates on any non-qualified deferred compensation.

 

(6) The Company provides the named executive officers with certain group, health, medical and other non-cash benefits generally available to all salaried employees and not included in this column pursuant to SEC guidance, because they do not discriminate in scope, terms or operation in favor of executive officers. The amounts shown in this column include the following for Mr. M. Benstock, Mr. Demott, Mr. Schwartz, and Mr. P. Benstock: matching contributions on 401(k) deferrals, insurance premiums for life insurance, insurance premiums for a supplemental medical plan, which is a fully insured hospital and medical expense reimbursement plan covering certain key management employees and their dependents, and personal automobile use. For Mr. Leide, the amounts represent matching contributions on 401(k) deferrals, a discretionary 401(k) contribution, and insurance premiums for life insurance.  

 

 Employment and Compensation Arrangements

 

The Company has not entered into employment agreements with any of the named executive officers.

 

 Grants of Plan-Based Awards

 

The following table sets forth information regarding grants of plan-based awards for the named executive officers during fiscal year 2016.

 

GRANTS OF PLAN-BASED AWARDS 

 

 

 

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

All

other

option

awards: Number

of shares

of stock

Exercise

or base

price of

option

Grant

date

fair

value

of stock

and

option

 

 

Threshold

Target

Maximum

Threshold

Target

Maximum

or units or units awards awards

Name

Grant

Date

($)

($)

($)

(#)

(#)

(#)

(#) (2)

(#)

($/Sh)

($) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Michael Benstock

 

62,806

 

314,032

           

 

 

 

 

2/5/2016

 

 

 

 

 -

 -

 -

 -

 -

17,500

16.35

78,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Andrew D. Demott, Jr.

 

27,591

 

137,956

           

 

 

 

 

2/5/2016

 

 

 

 

 -

 -

 -

 -

 -

15,000

16.35

67,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alan D. Schwartz

 

32,001

 

160,007

           

 

 

 

 

2/5/2016

 

 

 

 

 -

 -

 -

 -

 -

15,000

16.35

67,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peter Benstock

 

24,924

 

124,620

           

 

 

 

 

2/5/2016

 

 

 

 

 -

 -

 -

 -

 -

10,000

16.35

44,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominic Leide

 

11,200

 

56,000

   

 

 

 

 

 

 

 

 

2/5/2016

 

 

 

 

 -

-

16,667

-

16,667

10,000

16.35

589,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The amounts represent the potential threshold and target payouts under our fiscal 2016 annual incentive plan. There is no maximum payout. Actual payments are reflected in the Summary Compensation Table. For an explanation of how the payouts are calculated, see "Compensation Discussion and Analysis" and "Annual Incentive Bonus".

 

 
14

 

 

(2) On February 5, 2016, Mr. Leide was granted 16,667 performance shares that vest on February 5, 2021 provided he remains continually employed by the Company until vesting. In addition, Mr. Leide received a grant of 16,667 performance shares that vest on February 5, 2021 provided he meets certain revenue goals over the vesting period and remains continually employed by the Company until vesting. There is no threshold or maximum for this award.

 

(3) The amounts reported represent the grant date fair value of the awards measured in accordance with FASB ACS Topic 718. Refer to Note 12 – Share Based Compensation in the Notes to Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2016 for the relevant assumptions used to determine the valuation.

 

Outstanding Equity Awards at Fiscal Year-End

 

The following table sets forth information regarding the outstanding equity awards held by the named executive officers at December 31, 2016, the last day of the Company’s 2016 fiscal year. All share and per share information in this table has been adjusted to give retroactive effect to the 2-for-1 stock split effective on February 4, 2015.

 

STOCK AWARDS

 

 

Number of

Securities

Underlying

Unexercised

Options

Exercisable

 

Option

Exercise

Price

 

Option

Expiration

Date

Number of

Shares or

Units of Stock

that have not

Vested

 

Market Value

of Shares or

Units of Stock

that have not

Vested

 

Equity

Incentive

Plan Awards:

Number of

Unearned

Shares, Units

or Other

Rights that

have not

Vested

 

Equity

Incentive

Plan Awards:

Market or

Payout Value

of Unearned

Shares, Units

or Other

Rights that

have not

 Vested

Name

(#) (1)

 

($)

 

(2)

(#) (3)

 

($)

 

(#) (3)

 

($)

Michael Benstock

 

 

 

 

 

      35,000

 

        686,700

 

-

 

-

 

54,000

 

5.65

 

2/1/2018

 

 

 

 

 

 

 

 

40,000

 

7.36

 

2/7/2019

 

 

 

 

 

 

 

 

16,000

 

18.66

 

2/6/2020

 

 

 

 

 

 

 

 

17,500

 

16.35

 

2/5/2021

 

 

 

 

 

 

 

Andrew D. Demott, Jr.

 

 

 

 

 

      20,000

 

        392,400

 

-

 

-

 

36,000

 

5.65

 

2/1/2018

 

 

 

 

 

 

 

 

30,000

 

7.36

 

2/7/2019

 

 

 

 

 

 

 

 

12,000

 

18.66

 

2/6/2020

 

 

 

 

 

 

 

 

15,000

 

16.35

 

2/5/2021

 

 

 

 

 

 

 

Alan D. Schwartz

 

 

 

 

 

      25,000

 

        490,500

 

-

 

-

 

42,000

 

5.65

 

2/1/2018

 

 

 

 

 

 

 

 

34,000

 

7.36

 

2/7/2019

 

 

 

 

 

 

 

 

13,600

 

18.66

 

2/6/2020

 

 

 

 

 

 

 

 

15,000

 

16.35

 

2/5/2021

 

 

 

 

 

 

 

Peter Benstock

 

 

 

 

 

      20,000

 

        392,400

 

-

 

-

 

36,000

 

5.65

 

2/1/2018

 

 

 

 

 

 

 

 

30,000

 

7.36

 

2/7/2019

 

 

 

 

 

 

 

 

12,000

 

18.66

 

2/6/2020

 

 

 

 

 

 

 

 

10,000

 

16.35

 

2/5/2021

 

 

 

 

 

 

 

Dominic Leide

 

 

 

 

 

      16,667

 

        327,007

 

        16,667

 

       327,007

 

13,586

 

7.36

 

2/7/2019

 

 

 

 

 

 

 

 

8,000

 

18.66

 

2/6/2020

 

 

 

 

 

 

 

 

10,000

 

16.35

 

2/5/2021

 

 

 

 

 

 

 

 

(1) Options and stock-settled stock appreciation rights are exercisable immediately upon grant.  

 

 
15

 

   

(2) The expiration date of each grant occurs five years after the date of the grant.

 

(3) On February 7, 2014, Mr. M. Benstock, Mr. Demott, Mr. Schwartz and Mr. P. Benstock were awarded 35,000, 20,000, 25,000 and 20,000 restricted shares, respectively, of the Company’s common stock. These shares are unvested as of December 31, 2016 and vested on February 7, 2017. On February 5, 2016, Mr. Leide was granted 16,667 performance shares that vest on February 5, 2021 provided he remains continually employed by the Company and 16,667 performance shares that vest on February 5, 2021 provided he meets certain revenue goals over the vesting period and remains continually employed by the Company.

 

Option Exercises and Stock Vested

 

The following table sets forth information regarding exercises of stock options and SARs and vesting of stock for the named executive officers during fiscal year 2016. All share and per share information in this table has been adjusted to give retroactive effect to the 2-for-1 stock split effective on February 4, 2015.

 

OPTION EXERCISES AND STOCK VESTED

 

 

Option awards

Stock awards

         

 

Number of shares

acquired on exercise

Value realized on

exercise

Number of shares

acquired on vesting

Value realized on

vesting

Name

(#)

($) (1)

(#)

($)

 

 

 

 

 

Michael Benstock

57,792

722,636

-

-

 

 

 

 

 

 

 

 

 

 

Andrew D. Demott, Jr.

30,000

387,613

-

-

 

 

 

 

 

 

 

 

 

 

Alan D. Schwartz

34,000

435,030

-

-

 

 

 

 

 

 

 

 

 

 

Peter Benstock

84,000

1,052,723

-

-

 

 

 

 

 

 

 

 

 

 

Dominic Leide

5,568

57,601

-

-

 

 

 

 

 

 

(1) The value realized is computed as the difference between the market value on the date of exercise and the exercise price times the number of options exercised. 

 

Pension Benefits

 

Since 1942, the Company has had a retirement plan (the "Basic Plan") which has been qualified under the Internal Revenue Code. The Basic Plan is a "defined benefit" plan, with benefits normally beginning at age 65, is non-contributory by an employee, and the Company's contributions are not allocated to the account of any particular employee. All domestic employees of the Company (except employees included in a retirement plan negotiated as part of a union contract) are eligible to participate in the Basic Plan prior to June 30, 2013. After June 30, 2013, benefits are provided under a “defined contribution plan” and the Basic Plan benefit accruals are frozen. The Company also commenced, effective November 1, 1994, the Superior Uniform Group, Inc. Supplemental Pension Plan (the "Supplemental Plan") which is available to certain eligible employees of the Company, including certain executive officers. Retirement benefits available under the Supplemental Plan are based on the same provisions as under the qualified plan but ignore the salary limitations imposed by the Internal Revenue Service ($265,000 in 2016). The Supplemental Plan is not frozen.

 

The Supplemental Plan provides benefits based on years of service and earnings above and below the Covered Compensation Base (the wage bases on which maximum Social Security taxes are payable). The normal monthly retirement benefit is 17.5% of an employee's average monthly compensation during the highest paid five years of the ten years immediately preceding retirement up to his Covered Compensation Base plus 32.5% of such average monthly compensation in excess of his Covered Compensation Base, reduced in the event such employee has less than 25 years of service. No more than 25 years of service may be used in determining the benefit. An employee's compensation includes overtime pay, commissions and any bonus received and therefore includes executive officers’ compensation as described in the Salary and Bonus columns of the Summary Compensation Table shown above. There is no offset in retirement benefits for Social Security benefits or other retirement plans or statutory benefits. The Basic Plan was amended as of November 1, 1989. Prior to the amendment, the Basic Plan provided benefits based on years of service and earnings in excess of the Covered Compensation Base. Benefits accrued prior to November 1, 1989 under the Basic Plan would be paid, if higher than the sums set forth above.

 

 
16

 

   

The following table sets forth information regarding pension benefits for the named executive officers.

 

PENSION BENEFITS

 

         

 

 

Number of years

credited service

Present value of

accumulated benefit

Payments during last

fiscal year

Name

Plan name

(#) (1)

($) (2)

($)

 

 

 

 

 

Michael Benstock

Supplemental

25.0

2,799,246

-

 

 

 

 

 

 

 

 

 

 

Andrew D. Demott, Jr.

Supplemental

18.5

809,909

-

 

 

 

 

 

 

 

 

 

 

Alan D. Schwartz

Supplemental

25.0

1,965,242

-

 

 

 

 

 

 

 

 

 

 

Peter Benstock

Supplemental

25.0

830,061

-

 

 

 

 

 

 

 

 

 

 

Dominic Leide

Basic

7.2

47,335

-

 

 

 

 

 

 

(1) Messrs. M. Benstock, Schwartz, and P. Benstock have respectively served 37.9, 41.9, and 33.9 years with the Company; however, the maximum number of years of service that can be credited under the Supplemental Plan is 25.

 

(2) Refer to Note 8 - Benefit Plans in the Notes to Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2016 for the relevant assumptions used to determine the valuation.

 

Nonqualified Deferred Compensation

 

As of December 31, 2016, the Company had one nonqualified deferred compensation plan for which named executive officers and other Company employees are eligible. This plan permits eligible employees to contribute up to 95% of salary, incentive bonus and/or commissions, if earned. The Company may make discretionary contributions to eligible plan participants’ accounts; no named executive officer was eligible for a Company contribution. At the time of the deferral elections, the participant must select a distribution date and a form of payment. The distribution date may be a specific date, upon retirement, or upon separation of service. The form of payment may be lump sum, or 5, 10 or 15 annual installments. Each participant is an unsecured creditor for any benefit under the plan, as no fund has been created for plan benefits that are protected from creditor claims. Participants may choose among several investment measurement funds in which to participate, and participants may change their investment mix at any time. Participants earn a rate of return which tracks the investment return achieved under the participant-selected investment measurement funds. The funds and annual rates of return as of December 1, 2016 are listed below: 

 

 

Fund Name

 

Returns (%) 1 Year

American Century VP Value I

20.48

American Funds IS Global Growth & Inc 2

7.35

American Funds IS New World 2

5.26

Columbia VP Income Opportunities 2

10.80

Delaware VIP Small Cap Value Series Std

31.41

Delaware VIP Smid Cap Growth Series Std

8.29

Dreyfus IP Small Cap Stock Index Svc

25.73

Fidelity VIP Government Money Mkt

0.20

Fidelity VIP Index 500 Init

11.86

Fidelity VIP Overseas Initial

-5.06

JPMorgan Insur Tr Mid Cap Value 1

14.69

PIMCO VIT Real Return Admin & Instl

5.20

PIMCO VIT Total Return Admin & Instl

2.68

T. Rowe Price Blue Chip Growth Port

0.78

Templeton Global Bond VIP 2

2.94

Vanguard VIF Balanced

11.01

Vanguard VIF Equity Income

15.07

Vanguard VIF Mid-Cap Index

11.11

Vanguard VIF Small Co Gr

14.94

Vanguard VIF Total Bond Mkt Idx

2.47

Virtus Real Estate Securities Series I

7.10

  

 

 
17

 

  

The following table shows contributions to the named executive officers deferred compensation accounts for fiscal year 2016 and the aggregate amount of deferred compensation as of December 31, 2016:

 

NONQUALIFIED DEFERRED COMPENSATION

 

           

 

Executive

contributions

in last FY

Registrant

contributions

in last FY

Aggregate

earnings in

last FY

Aggregate

withdrawals/

distributions

Aggregate

balance at

last FYE

Name

($) (1)

($)

($) (2)

($)

($)

 

 

 

 

 

 

Michael Benstock

180,000

16,985

196,985

 

 

 

 

 

 

 

 

 

 

 

 

Andrew D. Demott, Jr.

12,000

1,182

13,186

 

 

 

 

 

 

 

 

 

 

 

 

Alan D. Schwartz

120,000

12,732

132,732

 

 

 

 

 

 

 

 

 

 

 

 

Peter Benstock

200,000

15,447

215,447

 

 

 

 

 

 

 

 

 

 

 

 

Dominic Leide

-

-

 -

-

 

 

 

 

 

 

 

(1) The amounts in the column are included in the Summary Compensation Table. 

 

(2) The amounts in this column are not included in the Summary Compensation Table because they are not above-market or preferential earnings.

 

 
18

 

 

Potential Payments Upon Termination or Change in Control

 

The Company has a severance protection agreement with each of Michael Benstock, Andrew D. Demott, Jr., Alan Schwartz, and Peter Benstock. The agreements are substantively identical to one another. Each of these agreements requires the Company to make severance payments and provide severance benefits to the executive if the executive’s employment is terminated within twenty-four (24) months following a “Change in Control”.

 

“Change in Control” under the Company’s severance protection agreements generally mean any of the following:

 

 

an acquisition of any voting securities of the Company by any person immediately after which such person has beneficial ownership of 20% or more of the combined voting power of the Company’s then outstanding voting securities;

 

the individuals who as of the date of the severance protection agreement are members of the Board of Directors cease to constitute at least two-thirds of the members of the board, provided that (i) if the election, or nomination for election by the Company’s common shareholders, of any new director was approved by a vote of at least two-thirds of the incumbent board, such new director shall be considered as a member of the incumbent board, and (ii) no individual shall be considered a member of the incumbent board if such individual initially assumed office as a result of either an actual or threatened election contest or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the board or as a result of any agreement intended to avoid or settle any election or proxy contest; or

 

approval by shareholders of the Company of:

 

o

a merger, consolidation or reorganization involving the Company, unless such transaction is a “Non-Control Transaction,” which means a merger, consolidation or reorganization of the Company where:

 

the shareholders of the Company, immediately before such merger, consolidation or reorganization, own immediately following such transaction at least two-thirds of the combined voting power of the outstanding voting securities of the corporation resulting from such transaction;

 

the individuals who were members of the incumbent board immediately prior to the execution of the agreement providing for such transaction constitute at least two-thirds of the members of the Board of Directors of the surviving corporation; and

 

no person other than (i) the Company, (ii) any subsidiary of the Company, (iii) any employee benefit plan maintained by the Company, the surviving corporation or any subsidiary, or (iv) any person who, immediately prior to such merger, consolidation or reorganization, had beneficial ownership of 20% or more of the then outstanding voting securities has beneficial ownership of 20% or more of the combined voting power of the surviving corporation’s then outstanding voting securities;

 

o

a complete liquidation or dissolution of the Company; or

 

o

an agreement for the sale lease, transfer, conveyance or other disposition of all or substantially all of the assets of the Company to any person (other than a transfer to a subsidiary).

  

For these purposes, a termination of employment is generally:

 

 

for “Cause” if the executive has been convicted of a felony or if the termination is evidenced by a resolution adopted in good faith by two-thirds of the Company’s board that the executive (i) intentionally and continually failed substantially to perform his or her reasonably assigned duties for a period of at least 30 days after a written notice of demand for substantial performance has been delivered to the executive; or (ii) intentionally engaged in illegal conduct or gross misconduct which results in material economic harm to the Company; and

 

for “Disability” if the executive experiences a physical or mental infirmity which impairs the executive’s ability to substantially perform his duties with the Company for a period of one-hundred-eighty (180) consecutive days.

   

 

 
19

 

 

For these purposes, “Good Reason” generally means the occurrence of any one or more of the following events or conditions, without the executive’s consent, after a Change in Control:

 

 

the assignment to the executive of any duties inconsistent with the executive’s position, authority, duties or responsibilities;

 

a reduction by the Company of the executive’s base salary or an adverse change in the eligibility requirements or performance criteria under any bonus, incentive or compensation plan, program or arrangement which materially adversely affects the executive;

 

any failure to pay the executive any compensation, payment or benefits to which the executive is entitled within five days of the date due;

 

the Company’s requiring the executive to be based anywhere other than within 25 miles of the executive’s job location, except for reasonably required travel;

 

the failure by the Company to continue in effect any pension, bonus, incentive, stock ownership, purchase, option, life insurance, health, accident, disability, or any other employee benefit plan, program or arrangement, in which the executive participates, or the taking of any action by the Company that would adversely affect the executive’s participation or materially reduce the executive’s benefits under any of such plans, without a substantially equivalent replacement;

 

the failure of the Company to secure a successor’s written agreement to perform the agreement; or

 

approval by the Company’s shareholders of a complete liquidation or dissolution of the Company that does not adequately provide the funds needed to perform the agreement.

  

As required by Section 409A of the Internal Revenue Code, the named executive officers’ agreements may be modified to be in compliance with payment timing and other relevant requirements.

 

Under these severance protection agreements, if, during the twenty-four (24) months following a “Change in Control,” the executive terminates employment for “Good Reason” or for any reason during the 45-day period commencing 180 days after the occurrence of the Change in Control or if the Company terminates his employment other than for Cause, death or disability, then the executive will be entitled to receive the following payments, benefits and rights:

 

 

(i)

payment of all amounts earned or accrued through the date of termination, including, base salary, reimbursement for reasonable and necessary expenses incurred on behalf of the Company, vacation pay, bonuses and incentive compensation, and all other amounts that the executive is entitled to under any compensation plan of the Company;

 

(ii)

payment of a bonus which is calculated pro-rata based on the number of calendar days the executive was employed during the calendar year of his termination;

 

(iii)

payment of an amount equal to two years of base salary and two years of annual bonus

 

(iv)

for a period of two years, continuation on behalf of the executive, his dependents and beneficiaries of life insurance, short-term disability, medical, dental and hospitalization benefits;

 

(v)

payment of the excess retirement benefit the executive would have received had he remained employed for two additional years; and

 

(vi)

all of the executive’s outstanding incentive awards shall become fully vested and, if applicable, fully exercisable.

   

 

 
20

 

 

Alternatively, if during the twenty-four (24) months following a “Change in Control”, the executive’s employment is terminated by the Company for Cause, death or disability, or by the executive for other than Good Reason or other than during the 45 day period commencing 180 days after the occurrence of a Change in Control, then the executive will be entitled to receive:

 

 

(i)

payment of all amounts earned or accrued through the date of termination, including, base salary, reimbursement for reasonable and necessary expenses incurred on behalf of the Company, vacation pay, bonuses and incentive compensation, and all other amounts that the executive is entitled to under any compensation plan of the Company; or

 

(ii)

if such termination is by the Company due to the executive’s death or disability, payment of a bonus which is calculated pro-rata based on the number of calendar days the executive was employed during the calendar year of his termination.

  

The severance protection agreements also provides that if any payment or benefit to which an executive is entitled pursuant to the agreement gives rise to excise tax liability for, under Section 4999 of the IRC, a tax gross-up will be provided to executive by the Company so that the executive will receive the same after-tax payment as would have been the case if such payment or benefit were not subject to such excise tax.

 

The Compensation Committee has determined that the foregoing severance and change in control benefits are an important part of a competitive overall compensation arrangement for these named executive officers, are consistent with the objective of attracting, motivating and retaining highly talented executives and are important as a recruitment and retention device. The Compensation Committee also has concluded that change in control benefits help to secure the continued employment and dedication of these named executive officers, mitigate concern that they might have regarding their continued employment prior to or following a change in control and encourage independence and objectivity when considering possible transactions that may be in the best interests of the Company’s shareholders but may possibly result in the termination of their employment.

 

 The Compensation Committee has determined that the payment or provision of the foregoing severance and change in control benefits is consistent with competitive practices for positions at the level of these named executive officers. The potential amount of such benefits that an executive may receive in the event of a change in control did not influence the Compensation Committee’s decisions regarding other compensation elements due to the fact that a change in control may never occur during the named executive officer’s term of employment.

 

The following table sets forth the amount each named executive officer would be due under a change in control if the executive’s employment is terminated other than by the Company for cause or disability or death. The amounts payable for cause include only accrued compensation (1). The amounts for death or disability include only accrued compensation (1) and pro-rata bonus (2).

    

  POTENTIAL PAYMENTS UPON CHANGE IN CONTROL

             

 

Accrued

Compensation

Pro-Rata
Bonus

Cash

Severance

Health and

Welfare

Benefits

Cash

Retirement

Benefits

Equity

Awards

Name

($) (1)

($) (2)

($) (3)

($) (4)

($) (5)

($) (6)

 

 

 

 

 

 

 

Michael Benstock

642,244

-

2,309,071

38,000

892,383

686,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Andrew D. Demott, Jr.

338,569

-

1,381,240

38,000

619,161 

392,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alan D. Schwartz

225,076

-

1,403,683

38,000

407,964

490,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peter Benstock

25,000

-

806,743

32,256

2,079

392,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominic Leide (7)

 -

119,902

 

 

 

 

 

 

 

 

(1) Amount includes all amounts earned or accrued though the termination date, including bonuses and incentive compensation (other than pro-rata bonus). There is no accrued salary or accrued vacation as of December 31, 2016 or any other amounts under any compensation plan.

  

 

 
21

 

 

(2) There is no pro-rata bonus as of December 31, 2016 as bonuses are earned on a calendar year basis. Bonuses earned for fiscal year 2016 are included in accrued compensation.

 

(3) Amount is equal to two times the sum of base salary plus bonus amount. The bonus amount is the average of the annual cash bonuses paid or payable during the three full years before the termination date.

 

(4)  For a period of two years, continuation on behalf of the executive, his dependents and beneficiaries the life insurance, short-term disability, medical, dental and hospitalization benefits. The amounts represent the Company’s portion of the benefit cost.

 

(5) The amount represents a cash payment of the excess retirement benefit the executive would have received had he remained employed for two additional years.

 

(6) Amounts represent the value of accelerated vesting of restricted stock issued on February 7, 2014 which vested on February 7, 2017. There is no amount for options or stock appreciation rights as they vest upon issuance.   

 

(7) There is no change in control agreement for Mr. Leide. However, under the 2013 Incentive Stock and Awards Plan, Mr. Leide will receive a pro-rata portion of his unvested performance shares issued on February 5, 2016 upon a change in control.

 

Director Compensation

 

The following table sets forth information regarding the compensation received by each of the Company's non-employee Directors during the year ended December 31, 2016.

   

DIRECTOR COMPENSATION

 

 

Fees Earned or

Stock

Option

All Other

 

 

Paid in Cash

Awards

Awards

Compensation

Total

Name

($)

($) (2)

($) (1)

($)

($)

Sidney Kirschner

40,750

49,998

20,295

-

111,043

 

 

 

 

 

 

Robin Hensley

28,500

39,992

20,295

-

88,787

 

 

 

 

 

 

Paul Mellini

29,000

39,992

20,295

-

89,287

 

 

 

 

 

 

Todd Siegel

21,000

39,992

20,295

-

81,287

 

 

 

 

 

 

 

 (1) Stock options for our non-employee Directors are granted annually. On May 6, 2016, each of the non-employee Directors was awarded 2,750 options. The options were granted with an exercise price of $18.55 per share. The amount shown in this column is the aggregate grant date fair value computed in accordance with FASB ASC Topic 718. Refer to Note 12 – Share-Based Compensation in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2016 for the relevant assumptions used to determine the valuation of our option awards. All such awards are granted with an exercise price equal to the closing price of the common stock on the date of grant as reported on NASDAQ, are exercisable six months from the date of grant, and generally expire ten years after the date of grant. As of December 31, 2016, Mr. Kirschner had 57,500 options outstanding; Ms. Hensley had 57,500 options outstanding; Mr. Mellini had 53,666 options outstanding; and Mr. Siegel had 12,500 options outstanding. All such options are exercisable.

  

 

 
22

 

 

(2) On November 4, 2016 the Board of Directors approved a restricted stock grant under the terms of the 2013 Stock and Awards Plan to the four independent members of the Board of Directors. Mr. Kirschner received 3,058 shares, and Ms. Hensley, Mr. Mellini, and Mr. Siegel each received 2,446 shares. The fair value on the date of grant was $16.35 per share. These shares are unvested and will vest if the directors are still serving on the Company’s Board of Directors on November 4, 2019. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Stock and Awards Plan. Mr. Kirschner’s restricted stock grant is subject to acceleration upon Mr. Kirschner’s retirement from or decision to not seek re-election to the Company’s Board of Directors, if such retirement or decision occurred at least one (1) year after the grant date. In all other material respects the restricted stock award agreement is identical to the Form of Restricted Stock Agreement filed as Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on February 13, 2014 (File/Film No.: 001-05869/14603415).

   

All share and per share information in the footnotes to the above table has been adjusted to give retroactive effect to the 2-for-1 stock split effective on February 4, 2015.

 

Directors who are employees of the Company receive no extra compensation for their services as Directors.  Commencing as of February 7, 2014, each non-employee Director receives up to $2,000 per Board of Directors meeting attended, and grants of 2,750 stock options per year.  In addition each non-employee director receives the following per year in restricted common stock of the Company which vests three years after date of grant:  Mr. Kirschner - $50,000 and Ms. Hensley, Mr. Mellini, and Mr. Siegel - $40,000. Commencing as of February 7, 2014, each non-employee Director also receives an annual retainer (paid in quarterly installments) as follows:  Sidney Kirschner -- $30,000; Robin Hensley - $18,000; Paul Mellini - $17,000; and Todd Siegel - $12,000.  In addition, members of the Audit Committee receive $500 per committee meeting attended, members of the Compensation Committee receive $250 per committee meeting attended, members of the Corporate Governance, Nominating and Ethics Committee receive $250 per committee meeting attended, and members of the Capital Committee receive $250 per committee meeting attended.  Non-employee Directors are entitled to reimbursement for expenses incurred in connection with their attendance at Board of Directors meetings and committee meetings.  In addition, non-employee Directors are eligible to receive additional stock option grants pursuant to our 2013 Incentive Stock and Awards Plan.

 

COMPENSATION COMMITTEE REPORT

 

The Compensation Committee has reviewed and discussed with management the Compensation Discussion and Analysis included in this proxy statement and, based on such review and discussion, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement.

 

BY: Sidney Kirschner and Paul Mellini

  

SECURITY OWNERSHIP OF MANAGEMENT AND OTHERS

 

The following table sets forth, as of the Record Date (except as noted), information regarding the beneficial ownership of the Company's Common Stock by (i) each person known to the Company to be the beneficial owner of more than 5% of the Company's Common Stock, (ii) each Director, (iii) each nominee for election as a Director, (iv) each named executive officer, and (v) all Directors and executive officers as a group.

    

 

 
23

 

 

 Except as set forth below, percentage ownership is based on 14,562,092 shares of the Company’s Common Stock issued and outstanding as of the Record Date. Shares issuable upon exercise of options and SARs within 60 days after the Record Date are deemed to be outstanding for the purpose of computing the percentage ownership and overall voting power of each person deemed to beneficially own such securities, but are not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. All share and per share information in the footnotes to the table has been adjusted to give retroactive effect to the 2-for-1 stock split effective on February 4, 2015.

 

 

SECURITY OWNERSHIP

Name and Address

Amount and Nature of

Percent of

of Beneficial Owner

Beneficial Ownership (1)

Class

 

 

 

 

 

BENSTOCK-SUPERIOR LTD.

 

2,782,088

(2)

19.1%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

 

 

 

 

 

MOCHELLE A. STETTNER

 

1,238,648

(6)

8.5%

2331 Lehigh Parkway N.

 

 

 

 

Allentown, PA 18130

 

 

 

 

 

 

 

 

 

DIMENSIONAL FUND ADVISORS, LP

 

1,075,648

(5)

7.4%

6300 Bee Cave Road

 

 

 

 

Austin, TX 78746

 

 

 

 

 

 

 

 

 

MICHAEL BENSTOCK

 

654,764

(3)(7)(8)(9)

4.5%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

 

 

 

 

 

ALAN D. SCHWARTZ

 

567,889

(4)(7)

3.9%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

 

 

 

 

 

PETER BENSTOCK

 

436,551

(7)

3.0%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

 

 

 

 

 

ANDREW D. DEMOTT, JR.

 

234,963

(7)(8)(9)

1.6%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

 

 

 

 

 

SIDNEY KIRSCHNER

 

81,881

(7)(10)(11)(12)

0.6%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

 

 

 

 

 

PAUL MELLINI

 

75,264

(7)(10)(11)(12)

0.5%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

 

 

 

 

 

ROBIN HENSLEY

 

70,269

(7)(10)(11)(12)

0.5%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

  

DOMINIC LEIDE

 

56,428

(7)

0.4%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

  

TODD SIEGEL

 

31,169

(7)(10)(11)(12)

0.2%

10055 Seminole Boulevard

 

 

 

 

Seminole, Florida 33772

 

 

 

 

 

 

 

 

 

All Directors and Executive Officers as a group (10 persons)

 

5,055,500

(2)(3)(4)(8)(9)(10)(11)(12)

34.7%

 
(1) The number of shares beneficially owned is determined under rules promulgated by the Securities and Exchange Commission (the “SEC”), and the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any shares as to which the individual has sole or shared voting power or investment power and also any shares which the individual has the right to acquire within 60 days after the Record Date through the exercise of any stock option or other right. Inclusion in the table of such shares, however, does not constitute an admission that the director, nominee, named executive officer or principal stockholder is a direct or indirect beneficial owner of such shares. Except as set forth herein, the persons listed have sole voting and investment power with respect to the shares referred to in the table. 

 
24

 

 

(2) Represents shares held of record by Benstock-Superior Ltd., a Florida limited partnership ("Reporting Person").  The general partners of the Reporting Person are Susan B. Schwartz, the wife of our President, Michael Benstock and Peter Benstock (the “General Partners”). The General Partners of the Reporting Person each own three hundred thirty-three and one-third (333 1/3) of the one thousand (1,000) total outstanding general partnership units. The voting and disposition of the Company's Common Stock owned by the Reporting Person requires approval of a majority of the general partnership units pursuant to the limited partnership agreement of the Reporting Person. Accordingly, each General Partner disclaims individual beneficial ownership of the shares of the Company’s Common Stock owned by the Reporting Person.      

 

(3) Includes 22,600 shares held of record by Mr. M. Benstock’s wife. Mr. Benstock disclaims beneficial ownership of such shares.

 

(4) Includes 244,928 shares held of record by a revocable trust of which the trustee is Mr. Schwartz’s wife. Mr. Schwartz disclaims beneficial ownership of such shares. The remaining shares are held of record by a revocable trust of which the trustee is Mr. Schwartz.

 

(5) This disclosure is based on a Schedule 13G/A filed with the Securities and Exchange Commission on February 9, 2017. Dimensional Fund Advisors LP, an investment adviser registered under Section 203 of the Investment Advisors Act of 1940, furnishes investment advice to four investment companies registered under the Investment Company Act of 1940, and serves as investment manager to certain other commingled group trusts and separate accounts (such investment companies, trusts and accounts, collectively referred to as the “Funds”). In certain cases, subsidiaries of Dimensional Fund Advisors LP may act as an adviser or sub-adviser to certain Funds. In its role as investment adviser, sub-adviser and/or manager, Dimensional Fund Advisors LP or its subsidiaries (collectively, “Dimensional”) may possess voting and/or investment power over the securities of the Company that are owned by the Funds, and may be deemed to be the beneficial owner of the shares of the Company held by the Funds. However, all securities reported in this schedule are owned of record by the Funds. Dimensional disclaims beneficial ownership of such securities.

 

(6) Includes 10,288 shares owned by a Trust of which Mrs. Stettner is a Co-Trustee with two of her adult children, and 1,824 shares held as custodian for her children who are now adults. Mrs. Stettner disclaims beneficial ownership of all of these shares.

 

(7) The share ownership of the following individuals includes that number of shares underlying option and SARs awards following his or her name, which are currently exercisable or are exercisable within 60 days of the Record Date, pursuant to the Company’s 2013 and 2003 Incentive and Stock and Awards Plans: Mr. M. Benstock – 144,000 shares; Mr. Schwartz – 104,600 shares; Mr. P. Benstock – 97,200 shares; Mr. Demott – 107,500 shares; Mr. Kirschner – 57,500 shares; Ms. Hensley – 57,500 shares; Mr. Mellini – 48,666 shares; Mr. Siegel – 12,500 shares; and Mr. Leide – 40,786 shares.

 

(8) Mr. M. Benstock has pledged approximately 68,000 of the shares listed in the table as security for a loan. Mr. Demott has pledged 47,983 of the shares listed in the table as security for a loan.

 

(9) Includes unvested restricted shares granted on February 3, 2017. These shares will vest on February 3, 2020 if the respective executive is still employed by the Company. The executives have the ability to vote these shares currently. Mr. M. Benstock has 23,571 shares and Mr. Demott has 11,048 shares.


(10) Includes unvested restricted shares granted on November 7, 2014. These shares will vest on November 7, 2017 if the respective director is still serving on the Board of Directors of the Company. The directors have the ability to vote these shares currently. Each director has 1,504 shares.

 

(11) Includes unvested restricted shares granted on November 6, 2015. These shares will vest on November 6, 2018 if the respective director is still serving on the Board of Directors of the Company. The directors have the ability to vote these shares currently. Each director has 1,819 shares.

    

(12) Includes unvested restricted shares granted on November 4, 2016. These shares will vest on November 4, 2019 if the respective director is still serving on the Board of Directors of the Company. The directors have the ability to vote these shares currently. Mr. Kirschner – 3,058 shares; Ms. Hensley – 2,446 shares; Mr. Mellini – 2,446 shares; Mr. Siegel – 2,446 shares

 

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

 

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the Company’s officers and directors, and persons who beneficially own more than ten percent of a registered class of the Company’s equity securities, to file reports of ownership and changes in ownership with the SEC. Officers, directors and greater than ten percent beneficial owners are required by SEC regulation to furnish the Company with copies of all Section 16(a) forms they file. Based solely on its review of the copies of such forms received by it and written representations from certain reporting persons, the Company believes that, during its most recently completed fiscal year ended on December 31, 2016, all Section 16(a) reports required to be filed by its officers, directors, and greater than ten percent beneficial owners were timely filed.

 

CERTAIN TRANSACTIONS

 

Director and Officer Liability Insurance

 

As authorized by Section 607.0850(12) of the Florida Business Corporation Act, the Company maintains insurance to indemnify it and its Directors and officers from certain liabilities to the extent permitted by law. Such insurance, in the face amount of $12,000,000, was obtained pursuant to contracts dated August 27, 2016.  Under the terms of the contract, the Company paid an annual premium of $89,700 for the insurance.  During 2015, such insurance, in the face amount of $12,000,000, was obtained pursuant to contracts dated August 27, 2015. Under the terms of the contracts, the Company paid an annual premium of $89,700 for the insurance.  No sums have been paid or sought under any such indemnification insurance. 

 

 
25

 

 

Related Party Transactions

 

Our Board of Directors has adopted a written Related Party Transactions Policy, which applies to our directors, officers, and employees, including our executive officers. This policy requires disclosure to either the Company’s general counsel or chief financial officer, and review by either the Audit Committee or the Board of the material terms of any related party transaction, including the approximate dollar value of the amount involved in the transaction, and all the material facts as to the related party’s direct or indirect interest in, or relationship to, the related party transaction. The transaction(s) below were reviewed under our Related Party Transactions Policy.

 

On December 17, 2012, the Company and its Chairman Emeritus, Mr. Gerald M. Benstock, entered into a separation, general release, non-compete, and advisory services agreement which contained a three-year term. During each of 2015 and 2016, the agreement was extended for one additional year each. The agreement is subject to early termination by either party. During each year of the term, Mr. Benstock will receive $150,000, plus payments for, or reimbursements of, certain pre-approved travel, lodging, entertainment, and business expenses. Under the agreement, Mr. Benstock also will retain access to an automobile leased for him by the Company for the remainder of the automobile’s term, and at the Company’s discretion thereafter for the remainder of the term of the agreement. During 2016 and 2015, Mr. Benstock also received additional consulting fees of $50,000 and $50,000, respectively, for consulting services related to discrete Company projects.

 

REPORT OF THE AUDIT COMMITTEE1

 

The Company’s Audit Committee serves to assist the Board in fulfilling the Board’s responsibilities relating to safeguarding of assets and oversight of the quality and integrity of the accounting, auditing and reporting practices of the Company. The members of the Audit Committee meet the independence and experience requirements of NASDAQ and the Securities and Exchange Commission.

 

The Company’s management has primary responsibility for the preparation, presentation and integrity of the Company’s financial statements and its financial reporting process. The Company’s independent registered public accounting firm, Mayer Hoffman McCann P.C., is responsible for expressing an opinion on the conformity of the Company’s audited financial statements to accounting principles generally accepted in the United States of America. The Audit Committee’s responsibility is to monitor and oversee these processes. In connection with these responsibilities, the Audit Committee reports as follows:

  

 

 

 

1. The Audit Committee has reviewed and discussed the audited financial statements for the fiscal year ended December 31, 2016 with the Company’s management.

   

 

2. The Audit Committee has discussed with Mayer Hoffman McCann P.C. the matters required to be discussed by the statement on Auditing Standards No. 16, as adopted by the Public Company Accounting Oversight Board.

 

 

 

3. The Audit Committee has received the written disclosures and the letter from Mayer Hoffman McCann P.C. required by applicable requirements of the Public Company Accounting Oversight Board regarding Mayer Hoffman McCann P.C.’s communications with the Audit Committee concerning independence, and has discussed with Mayer Hoffman McCann P.C. its independence.

 

 

 

4. Based on the review and discussions referred to in paragraphs (1) through (3) above, the Audit Committee recommended to the Board of Directors that the audited financial statements be included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 for filing with the Securities and Exchange Commission.

 

BY: Robin Hensley, Sidney Kirschner, and Paul Mellini

 

RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Proposal 2)

 

Although the Audit Committee has the sole authority to appoint the Company’s independent registered public accounting firm, the Audit Committee continues its long-standing practice of recommending that the Board ask the shareholders, at the Annual Meeting, to ratify the appointment of the independent registered public accounting firm. The Audit Committee has appointed Mayer Hoffman McCann P.C., independent registered public accounting firm, to audit the financial statements of the Company for the year ending December 31, 2017.

 

 


1 The material in this report is not “soliciting material” and is not deemed “filed” with the SEC and is not to be incorporated by reference in any of our filings under the Securities Act of 1933, as amended, or the Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.  

 

 
26

 

 

Shareholder ratification of the Company's independent registered public accounting firm is not required by the Company's Bylaws or otherwise. The Audit Committee and the Board of Directors have elected to seek such ratification as a matter of good corporate practice. If the shareholders do not ratify this appointment, the Audit Committee will consider the appointment of other auditors, but may also decide to retain Mayer Hoffman McCann P.C. as independent registered public accounting firm for 2017. Even if the selection is ratified, the Audit Committee, in its discretion, may change the appointment at any time during the year if it determines that such a change would be in the best interests of the Company and its shareholders.

 

The Company expects representatives of Mayer Hoffman McCann P.C. to be present and available to respond to appropriate questions at the 2017 Annual Meeting. Representatives of Mayer Hoffman McCann P.C. will have the opportunity to make a statement if they so desire.

 

Audit Fees and All Other Fees

 

The following table sets forth information regarding fees paid by the Company to Mayer Hoffman McCann P.C. during 2016 and 2015:

 

Mayer Hoffman McCann, P.C.

               

and CBIZ, Inc.

 

2016

   

2015

 
                 

Audit Fees (1)

  $ 250,000     $ 254,000  

Tax Fees

    7,900       10,000  

All Other Fees

    -       -  

Audit-Related Fees (Audit of Internal Controls)

    39,000       -  
                 

Total Fees

  $ 296,900     $ 265,000  

 

(1) Fees for audit services include fees associated with the annual audits and quarterly reviews in 2016 and 2015. Tax Fees were billed for services including assistance with tax compliance and the review and/or preparation of tax returns and tax consultation services. Audit-Related fees are related to the audit of the Company’s internal control over financial reporting. 

 

Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Auditors

 

The Audit Committee has concluded that Mayer Hoffman McCann P.C.’s provision of the audit and non-audit services described above is compatible with maintaining Mayer Hoffman McCann P.C.'s independence. The Audit Committee pre-approved all of such services. The Audit Committee has established pre-approval policies and procedures with respect to audit and non-audit services to be provided by its independent auditors. Pursuant to these policies and procedures, the Audit Committee may form, and delegate authority to, subcommittees consisting of one or more members when appropriate to grant such pre-approvals, provided that decisions of such subcommittee to grant pre-approvals are presented to the full Audit Committee at its next scheduled meeting. The Audit Committee's pre-approval policies do not permit the delegation of the Audit Committee's responsibilities to management.

    

Compensation of Independent Auditors’ Employees

 

Mayer Hoffman McCann P.C. leases substantially all of its personnel, who work under the control of Mayer Hoffman McCann P.C. shareholders, from wholly-owned subsidiaries of CBIZ, Inc., in an alternative practice structure. As such, approximately 100% of the hours spent on the audit were by personnel who are not full time, permanent employees of Mayer Hoffman McCann P.C.

 

The Board of Directors recommends a vote “FOR” the proposal to ratify the appointment of Mayer Hoffman McCann P.C. as our independent registered public accounting firm for the year ending December 31, 2017.  

   

EXPENSES OF SOLICITATION

 

The cost of soliciting proxies will be borne by the Company. Proxies may be solicited on behalf of the Company by directors, officers or employees of the Company, who will receive no additional compensation for soliciting, in person or by telephone, e-mail or facsimile or other electronic means. We may reimburse brokers and other persons holding stock in their names, or in the names of nominees, for their expenses for sending proxy materials to principals and obtaining their proxies.

  

 

 
27

 

 

ANNUAL REPORT ON FORM 10-K

 

We will provide without charge to each person solicited by this proxy statement, upon the written request of any such person, a copy of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as filed with the Securities and Exchange Commission, including the financial statements and a list of exhibits to the Form 10-K.  We will furnish to any such person any exhibit described in the list accompanying the Form 10-K upon the advance payment of reasonable fees.  Requests for copies of the Form 10-K and/or any exhibits should be directed to Melinda Barreiro, c/o Superior Uniform Group, Inc., 10055 Seminole Boulevard, Seminole, Florida 33772.  Your request must contain a representation that, as of March 1, 2017, you were a beneficial owner of shares entitled to vote at the 2017 Annual Meeting of Shareholders.

   

You may review our filings with the Securities and Exchange Commission by visiting our website at www.superioruniformgroup.com.

  

OTHER BUSINESS

 

Management of the Company does not know of any other business that may be presented at the Meeting. If any matter not described herein should be presented for shareholder action at the Meeting, the persons named in the enclosed Proxy will vote or refrain from voting the shares represented thereby in accordance with their best judgment on such matters after consultation with the Board of Directors.

 

 
28

 

 

SHAREHOLDER PROPOSALS FOR

PRESENTATION AT THE 2018

ANNUAL MEETING

 

 In order for proposals of shareholders and shareholder nominations for directors to be eligible for inclusion in our proxy materials relating to the annual meeting of shareholders in 2018 pursuant to SEC Rule 14a-8, they must be submitted in writing to the Company’s Secretary and received by the Company at the Company’s executive offices at 10055 Seminole Boulevard, Seminole, Florida 33772 by November 23, 2017 (unless the date of the 2018 annual meeting is not within 30 days of May 5, 2018, in which case the deadline will be a reasonable time before we begin to print and send the proxy materials for the 2018 annual meeting).

 

Notice to the Company of a shareholder proposal submitted outside of Rule 14a-8 will be considered timely under SEC Rule 14a-4(c) if received by the Company at the foregoing address between December 7, 2017 and January 6, 2018. The procedure for nominating directors is described above under “Director Committees and Meetings – Nomination of Directors.” The proxy solicited by the Board for the 2018 annual meeting will confer discretionary authority to vote on behalf of the persons named in such proxy on any shareholder proposal as to which the Company does not receive timely notice.

 

All shareholder proposals for inclusion in the Company’s proxy materials will be subject to the requirements of the proxy rules adopted under the Exchange Act and, as with any shareholder proposal (regardless of whether it is included in the Company’s proxy materials), the Company’s Amended and Restated Articles of Incorporation, the Company’s Amended and Restated Bylaws and Florida law.

 

By Order of the Board of Directors

 

/s/ Jordan M. Alpert

 

JORDAN M. ALPERT

Secretary

Dated: March 24, 2017

 

 
29

 

   

SUPERIOR UNIFORM GROUP, INC.

 

10055 Seminole Boulevard, P.O. Box 4002, Seminole, FL 33775-0002

 

THIS PROXY IS BEING SOLICITED BY THE BOARD OF DIRECTORS

 

FOR THE ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON MAY 5, 2017

 

The undersigned shareholder appoints MICHAEL BENSTOCK and ANDREW D. DEMOTT, JR., or any one of them, as proxies with full power of substitution and resubstitution, to vote the shares of capital stock of the Company that the undersigned is entitled to vote at the Annual Meeting of Shareholders to be held at the offices of the Company on May 5, 2017 at Noon, local time, and at any adjournments thereof, upon matters properly coming before the meeting, as set forth in the Notice of Annual Meeting included herewith, unless otherwise specified.

 

THE SHARES REPRESENTED HEREBY WILL BE VOTED AS DIRECTED, OR IF NO CONTRARY DIRECTION IS INDICATED, WILL BE VOTED FOR THE PROPOSALS INDICATED ON THIS CARD. The proxies, in their discretion, are further authorized to vote (x) for the election of a person to the Board of Directors, if any nominee named herein becomes unable to serve or for good cause will not serve, (y) on any matter which the Board of Directors did not know would be presented at the 2017 Annual Meeting of Shareholders by January 6, 2017, and (z) on other matters which may properly come before the 2017 Annual Meeting of Shareholders and any adjournments or postponements thereof.

 

THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.

 

 

 

 

Continued and to be signed on reverse side

 

 

 PLEASE DETACH ALONG PERFORATED LINE AND MAIL IN THE ENVELOPE PROVIDED. ▲

 

 

TO VOTE, MARK BLOCKS IN BLUE OR BLACK INK AS FOLLOWS:  

 KEEP THIS PORTION FOR YOUR RECORDS

    

 

 

 

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Shareholders to be held May 5, 2017. The Proxy Statement and our 2016 Annual Report on Form 10-K are available at: http://www.viewproxy.com/superioruniformgroup/2017.

 

 

 

 

The Board of Directors recommends you vote FOR the following proposal:

 

1.   Election of Directors.

 

FOR

AGAINST

ABSTAIN

 

FOR

AGAINST

ABSTAIN

 

FOR

AGAINST

ABSTAIN

01 Sidney Kirschner.

03 Alan D. Schwartz.

05 Paul Mellini.

02 Michael Benstock.

04 Robin Hensley.

06 Todd Siegel.

 

  The Board of Directors recommends you vote FOR the following proposal:

 Please sign, date and return promptly in the enclosed envelope.

 

  2.

To ratify the appointment of Mayer Hoffman McCann P.C. as

independent auditors for the fiscal year ending December 31, 2017.

 

 

  FOR AGAINST ABSTAIN   Date            
                       
          Signature          
                       
          Signature          
                (Joint Owners)      

  

          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.

 

 

 

          CONTROL NUMBER  
Address Change/Comments:  (If you noted  

Please indicate if you

     

any Address Changes and/or Comments

above, please mark box.)  ☐

  plan to attend this meeting        

  

 

 

 

 

 PLEASE DETACH ALONG PERFORATED LINE AND MAIL IN THE ENVELOPE PROVIDED. ▲ 

 

  

 

 

 

 

 

 

CONTROL NUMBER

 

 

 

   

 

 

 

  

PROXY VOTING INSTRUCTIONS

 

Please have your 11 digit control number ready when voting by Internet or Telephone 

 

 

 

 

 

 


 
 

 

 INTERNET

Vote Your Proxy on the Internet:

Go to www.AALvote.com/SGC 

Have your proxy card available

when you access the above

website. Follow the prompts to

vote your shares.

 

 TELEPHONE

Vote Your Proxy by Phone:      

 Call 1 (866) 804-9616

Use any touch-tone telephone to

vote your proxy. Have your proxy

card available when you call.

Follow the voting instructions 

to vote your shares. 

 

 

MAIL

Vote Your Proxy by Mail: 

 

Mark, sign, and date your proxy

card, then detach it, and return it

 in the postage-paid envelope

provided.