DEF 14A
KAMAN CORP filed this Form DEF 14A on 03/03/2017
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The most recent biennial market report prepared by the Committee's independent compensation consultant was delivered to the Committee in November 2015 and, in this discussion, it is sometimes referred to as the "2015 Market Report." For purposes of the 2015 Market Report, the independent compensation consultant determined the final average competitive market rate for each position by averaging the national survey data reported by AonHewitt and Equilar, two large independent compensation consulting firms, and the compensation data, if any, reported for each position by companies comprising the peer group compiled by ISS, the peer group compiled by Equilar and the Company's own peer group, which consisted of twenty-two Russell 2000 companies having annual revenues similar to ours. Exhibit I to this proxy statement identifies the national surveys (which were not prepared at the Company’s request) in more detail, along with the number, type and size of the organizations covered by the surveys. The companies comprising each of the peer groups referenced in the 2015 Market Report are also identified in Exhibit I to this proxy statement.
The Committee’s policy is that the midpoint of the salary grade for base salary, annual cash incentive targets and the annualized target value of long-term incentives for each position should each, over time, approximate the market median, as represented by the final average competitive market rate of compensation compiled by the independent compensation consultant. As of the 2015 Market Report prepared by the independent compensation consultant, the midpoint of the Kaman salary grade for base salary, annual cash incentive targets (as a percentage of base salary), and total compensation (salary, bonus and long-term compensation) for each of our Named Executive Officers as compared to the market median were as follows:
SUMMARY OF 2015 MARKET REPORT
PREPARED BY THE INDEPENDENT COMPENSATION CONSULTANT
 
Base Salary
 
Target Annual Cash Incentive Award (as a Percentage of Base Salary)
 
Total Compensation (Salary, Bonus & Long-Term Compensation)
 
Kaman(1)
 
Market
   Median(1)
 
Variance
 
Kaman(1)
 
Market
   Median(1)
 
Variance
 
Kaman(1)
 
Market
   Median(1)
 
Variance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Neal J. Keating
$892,530
 
$838,861
 
6%
 
105%
 
102%
 
3%
 
$4,184,144
 
$3,696,754
 
13%
Robert D. Starr
$450,080
 
$437,280
 
3%
 
65%
 
68%
 
(3)%
 
$1,417,752
 
$1,356,207
 
5%
Gregory L. Steiner
$450,080
 
$423,591
 
6%
 
65%
 
71%
 
(6)%
 
$1,417,752
 
$1,263,192
 
12%
Steven J. Smidler
$450,080
 
$438,415
 
3%
 
65%
 
69%
 
(4)%
 
$1,417,752
 
$1,292,636
 
10%
Ronald M. Galla
$309,150
 
$316,835
 
(2)%
 
55%
 
49%
 
6%
 
$757,418
 
$830,627
 
(9)%
Shawn G. Lisle
$337,560
 
$378,149
 
(11)%
 
55%
 
60%
 
(5)%
 
$877,656
 
$1,026,840
 
(15)%
_______________
(1)
All information presented was derived from the independent compensation consultant's 2015 Market Report, which was presented to the Committee in November of 2015. The Kaman compensation information set forth in the table reflects the midpoint of the Kaman salary grade for each position and the corresponding value of annual and long-term incentive compensation awards at target. Mr. Keating's total compensation figure reflects a long-term incentive opportunity equal to 275% of base salary. The table does not purport to show the actual compensation earned by, or paid to, the executives named in the table.
Our compensation policy also results in a significant percentage of total compensation (excluding benefits) being based on performance. Set forth below is the allocation of total direct compensation (excluding benefits) for target performance for each of our Named Executive Officers for 2016.
FIXED VS. PERFORMANCE BASED COMPENSATION PERCENTAGES
 
 
Fixed
 
Performance-Based(1)
Name
 
Salary
(% of Total)
 
Annual
Cash Incentive
(% of Total)
 
Long-Term
Incentive(2)
(% of Total)
 
Total
Performance
Related
(% of Total)
Neal J. Keating
 
20%
 
21%
 
59%
 
80%
Robert D. Starr
 
32%
 
20%
 
48%
 
68%
Gregory L. Steiner
 
31%
 
20%
 
49%
 
69%
Steven J. Smidler
 
32%
 
20%
 
48%
 
68%
Ronald M. Galla
 
41%
 
22%
 
37%
 
59%
Shawn G. Lisle
 
38%
 
22%
 
40%
 
62%
_______________
(1)
Percentages are based on target performance for the annual cash incentive and the long-term incentive elements of compensation.
(2)
Long-term incentive compensation consists of LTIP awards granted under the 2013 Management Incentive Plan.

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