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 12, 2016 (May 6, 2016)

 

 

STATE AUTO FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Ohio   000-19289   31-1324304
(State or other jurisdiction   (Commission   (IRS Employer
of incorporation)   File Number)   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, 2015 (the “2013-2015 performance period”), was omitted from the Company’s definitive Proxy Statement dated March 24, 2016 (the “2016 Proxy Statement”) because, as of that date, the final LTIP Peer Group data for the 2013-2015 performance period was not available to the Company.

On May 6, 2016, the Company’s Compensation Committee approved PAU awards for the 2013-2015 performance period for the NEOs identified in the 2016 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 65 of the 2016 Proxy Statement, as recalculated to include the value of the PAU awards for the 2013-2015 performance period.

 

Named Executive Officer

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

Michael E. LaRocco

     2015         319,576         1,463,251   

Steven E. English

     2015         262,455         965,109   

Jessica E. Clark

     2015         407,829         1,338,122   

Clyde H. Fitch

     2015         178,285         774,337   

James A. Yano

     2015         368,130         752,583   

Kim B. Garland

     2015         330,000         745,742   

Robert P. Restrepo, Jr.

     2015         559,692         4,165,651   

Steven J. Hunckler

     2015         211,110         1,825,337   

 

(1) For the total 2015 non-equity incentive plan compensation, the dollar amounts shown in this column reflect the aggregate amount of the following awards earned in 2015 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 ($)
 

Michael E. LaRocco

     —           117,276         202,300         319,576   

Steven E. English

     60,773         61,310         140,372         262,455   

Jessica E. Clark

     175,565         58,014         173,250         407,829   

Clyde H. Fitch

     42,088         48,784         87,413         178,285   

James A. Yano

     225,295         92,842         49,993         368,130   

Kim B. Garland

     —           247,500         82,500         330,000   

Robert P. Restrepo, Jr.

     208,081         138,530         213,081         559,692   

Steven J. Hunckler

     32,360         116,187         62,563         211,110   

 


Item 5.07 Submission of Matters to a Vote of Security Holders

 

(a) The Company’s annual meeting of shareholders (the “2016Annual Meeting”) was held on May 6, 2016.

 

(b) The following is a brief description and vote count on all items voted on at the 2016 Annual Meeting:

Proposal One – Election of Directors.

The following persons were elected to serve as Class I directors to hold office until the 2019 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
 

Robert E. Baker

     38,080,457         99,331         2,223,824   

Thomas E. Markert

     38,080,855         98,933         2,223,824   


Proposal Two – Amendment to the Company’s Code of Regulations.

This Proposal was approved with the following vote:

 

Shares

Voted “For”

 

Shares

Voted “Against”

 

Abstentions

 

Broker

Non-votes

37,890,239   2,492,101   21,272  

Proposal Three – Amendment to the 2009 Equity Incentive Compensation Plan

This Proposal was approved with the following vote:

 

Shares

Voted “For”

 

Shares

Voted “Against”

 

Abstentions

 

Broker

Non-votes

37,606,157   533,330   40,301   2,223,824

Proposal Four – Approval of Material Terms of the Outside Directors Restricted Share Unit Plan

This Proposal was approved with the following vote:

 

Shares

Voted “For”

 

Shares

Voted “Against”

 

Abstentions

 

Broker

Non-votes

37,953,386   188,256   38,146   2,223,824

Proposal Five – Approval of Material Terms of the One Team Incentive Plan

This Proposal was approved with the following vote:

 

Shares

Voted “For”

 

Shares

Voted “Against”

 

Abstentions

 

Broker

Non-votes

37,719,126   421,250   39,412   2,223,824

Proposal Six - Ratification of the selection of Ernst & Young LLP as the Company’s independent registered public accounting firm for 2016.

This Proposal was approved with the following vote:

 

Shares

Voted “For”

 

Shares

Voted “Against”

 

Abstentions

 

Broker

Non-votes

39,830,453   517,048   56,111  

Proposal Seven – 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

37,945,123   193,841   40,824   2,223,824

 

(c) Not applicable.

Section 8. Other Events

 

Item 8.01 Other Events.

At the Company’s Board of Directors’ meeting held on May 6, 2016, 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 S. Elaine Roberts

 

    Compensation Committee: Chairperson Robert E. Baker, David J. D’Antoni, Thomas E. Markert and Eileen A. Mallesch

 

    Nominating and Governance Committee: Chairperson Michael J. Fiorile, David J. D’Antoni, Thomas E. Markert and S. Elaine Roberts

 

    Investment and Finance Committee: Chairperson David R. Meuse, David J. D’Antoni and Michael E. LaRocco

 

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

 

    Risk Committee: Chairperson Michael J. Fiorile, Eileen A. Mallesch, Thomas E. Markert, and S. Elaine Roberts


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 12, 2016     By  

/s/ Melissa A. Centers

      Senior Vice President, Secretary and General Counsel