Current Report

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 7, 2014 (May 1, 2014)

 

 

STATE AUTO FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Ohio   000-19289   31-1324304

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

518 East Broad Street, Columbus, Ohio   43215-3976
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (614) 464-5000

Not Applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Section 5. Corporate Governance and Management

 

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Item 5.02(f)

State Auto Financial Corporation (the “ Company ”) has a Long-Term Incentive Plan under which grants of cash-based performance award units (“ PAUs ”) are made to its Named Executive Officers (“ NEOs ”) and other members of the Leadership Team. The value of a PAU is dependent upon the State Auto Group’s relative performance to a peer group of other property and casualty insurers (the “ LTIP Peer Group ”) during a three-year performance period. The value of the PAU awards to the NEOs for the three-year performance period ended December 31, 2013 (the “ 2011-2013 performance period ” ), was omitted from the Company’s definitive Proxy Statement dated April 1, 2014 (the “ 2014 Proxy Statement ”) because, as of that date, the final LTIP Peer Group data for the 2011-2013 performance period was not available to the Company.

On May 1, 2014, the Company’s Compensation Committee approved PAU awards for the 2011-2013 performance period for the NEOs identified in the 2014 Proxy Statement. Set forth below are the non-equity incentive compensation and total compensation for each NEO reported in the Summary Compensation Table on Page 46 of the 2014 Proxy Statement, as recalculated to include the value of the PAU awards for the 2011-2013 performance period.

 

Named Executive Officer

   Year      Non-Equity
Incentive Plan
Compensation
($)(1)
     Total ($)  

Robert P. Restrepo, Jr.

     2013         601,633         2,762,575   

Steven E. English

     2013         346,845         1,058,681   

Jessica E. Buss

     2013         454,209         994,511   

Clyde H. Fitch

     2013         269,629         870,028   

James A. Yano

     2013         204,610         780,773   

 

(1) For the total 2013 non-equity incentive plan compensation, the dollar amounts shown in this column reflect the aggregate amount of the following awards earned in 2013 by each NEO under the Long-Term Incentive Plan, the Company performance component of the LBP and the individual performance component of the LBP.

 

Named Executive Officer

   Long-Term
Incentive Plan
PAU
Award ($)
     LBP
Company
Performance
Award ($)
     LBP
Individual
Performance
Award ($)
     Total
Non-Equity
Incentive Plan
Compensation
Awards ($)
 

Robert P. Restrepo, Jr.

     179,816         277,205         144,612         601,633   

Steven E. English

     65,550         141,682         139,613         346,845   

Jessica E. Buss

     182,042         203,912         68,255         454,209   

Clyde H. Fitch

     48,289         126,512         94,828         269,629   

James A. Yano

     34,960         83,025         86,625         204,610   


Item 5.07 Submission of Matters to a Vote of Security Holders

 

(a) The Company’s annual meeting of shareholders (the “ 2014 Annual Meeting ” ) was held on May 2, 2014.

 

(b) The following is a brief description and vote count on all items voted on at the 2014 Annual Meeting:

Proposal One – Election of Directors.

The following persons were elected to serve as Class II directors to hold office until the 2017 annual meeting of shareholders and until a successor is elected and qualified, with each director nominee receiving the votes as indicated below:

 

Nominee

   Shares
Voted “For”
     Shares Voted
“Withheld”
     Broker
Non-votes
 

David J. D’Antoni

     36,864,459         648,430         2,295,456   

David R. Meuse

     37,378,256         134,633         2,295,456   

S. Elaine Roberts

     36,883,507         629,382         2,295,456   


Proposal Two – Ratification of the selection of Ernst & Young LLP as the Company’s independent registered public accounting firm for 2014.

This Proposal was approved with the following vote:

 

Shares

Voted “For”

  

Shares

Voted “Against”

  

Abstentions

  

Broker

Non-votes

39,126,391

   649,894    32,060    —  

Proposal Three – Advisory vote on compensation paid to named executive officers, as disclosed in the proxy materials.

This Proposal was approved with the following vote:

 

Shares

Voted “For”

  

Shares

Voted “Against”

  

Abstentions

  

Broker

Non-votes

37,240,944

   208,915    63,030    2 ,295,456

 

(c) Not applicable.

 

Section 8. Other Events

 

Item 8.01 Other Events.

At the Company’s Board of Directors meeting held on May 2, 2014, Paul S. Williams was re-elected as the Lead Director of the Board.

At the same Board meeting, the following directors were appointed or re-appointed to the following Board committees:

 

    Audit Committee: Chairperson Eileen A. Mallesch, Robert E. Baker, David R. Meuse and Paul S. Williams

 

    Compensation Committee: Chairperson Robert E. Baker, David J. D’Antoni, Alexander B. Trevor and Paul S. Williams

 

    Nominating and Governance Committee: Chairperson S. Elaine Roberts, David J. D’Antoni, Eileen A. Mallesch and Thomas E. Markert

 

    Investment and Finance Committee: Chairperson David R. Meuse, Thomas E. Markert, Robert P. Restrepo, Jr., S. Elaine Roberts and Alexander B. Trevor

 

    Independent Committee: Chairperson Alexander B. Trevor, Robert E. Baker, David J. D’Antoni and Paul S. Williams


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    STATE AUTO FINANCIAL CORPORATION
Date: May 7, 2014     By  

/s/ James A. Yano

      Senior Vice President, Secretary and General Counsel