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DEF 14A
KOPPERS HOLDINGS INC. filed this Form DEF 14A on 04/04/2017
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Table of Contents

EXECUTIVE COMPENSATION

 

Annual Cash Incentive for Mr. Lacy:

 

 

LOGO

For business unit employees, such as Messrs. Sullivan and Reeder, the committee established a different target corporate adjusted EBITDA performance level to account for aggressive adjusted EBITDA performance goals set at the business unit level. The target corporate adjusted EBITDA performance level for business unit employees was set at $160.0 million along with a range of incentive payouts at threshold, target and maximum performance levels, as set forth below.

 

  Corporate Adjusted EBITDA (Business Unit Employees)    Performance      % of Target     % of Payout  

  Maximum

 

   $

 

192,046,000

 

 

 

    

 

120

 

 

   

 

150

 

 

  Actual

 

   $

 

174,151,000

 

 

 

    

 

109

 

% 

 

   

 

122

 

% 

 

  Target

 

   $

 

160,038,000

 

 

 

    

 

100

 

 

   

 

100

 

 

  Threshold

 

   $

 

128,030,000

 

 

 

    

 

80

 

 

   

 

50

 

 

Actual 2016 adjusted EBITDA performance of $174.2 million translated to achievement of 109% of target adjusted EBITDA performance and a 122% payout level for business unit employees.

Mr. Sullivan’s annual cash incentive was determined in equal measure (50% each) by reference to both corporate adjusted EBITDA performance for business unit employees and adjusted EBITDA performance of our Global Carbon Materials and Chemicals (CMC) business unit, which Mr. Sullivan leads. The target adjusted EBITDA level for the CMC business unit was set at $23.4 million along with a range of incentive payouts at threshold, target and maximum performance levels, as set forth below.

 

  Adjusted EBITDA (Global CMC Business Unit)    Performance      % of Target     % of Payout  

  Maximum

 

   $

 

28,096,000

 

 

 

    

 

120

 

 

   

 

150

 

 

  Target

 

   $

 

23,413,000

 

 

 

    

 

100

 

 

   

 

100

 

 

  Actual

 

   $

 

23,286,000

 

 

 

    

 

99

 

% 

 

   

 

99

 

% 

 

  Threshold

 

   $

 

18,730,000

 

 

 

    

 

80

 

 

   

 

50

 

 

For 2016, the CMC business unit achieved adjusted EBITDA performance of $23.3 million, which translated to achievement of 99% of target adjusted EBITDA performance. For Mr. Sullivan, this lead to a payout level of 99% for the 50% of his incentive opportunity that was based on business unit performance. Taken together with the 122% percentage payout under the corporate component, this resulted in the following annual cash incentive for Mr. Sullivan:

Annual Cash Incentive for Mr. Sullivan:

 

 

LOGO

Mr. Reeder’s annual cash incentive was determined in equal measure (50% each) by reference to both corporate adjusted EBITDA performance for business unit employees and adjusted EBITDA performance of our Performance Chemicals (PC) business unit, which Mr. Reeder leads. The target adjusted EBITDA level for the PC business unit was set at $63.3 million along with a range of incentive payouts at threshold, target and maximum performance levels, as set forth below.

 

  Adjusted EBITDA (PC Business Unit)    Performance      % of Target     % of Payout  

  Actual

 

   $

 

80,460,000

 

 

 

    

 

127

 

% 

 

   

 

150

 

% 

 

  Maximum

 

   $

 

75,971,000

 

 

 

    

 

120

 

 

   

 

150

 

 

  Target

 

   $

 

63,309,000

 

 

 

    

 

100

 

 

   

 

100

 

 

  Threshold

 

   $

 

50,647,000

 

 

 

    

 

80

 

 

   

 

50

 

 

 

KOPPERS HOLDINGS INC. - 2017 Proxy Statement    23