CORRESP 1 filename1.htm corresp
March 10, 2009
VIA EDGAR
Mr. Mark Kronforst
Accounting Branch Chief
Division of Corporation Finance
United States Securities and Exchange Commission
Washington, D.C. 20549
  Re:    JDA Software Group, Inc.
Response to your letter dated February 24, 2009 concerning Definitive Proxy
Statement on Schedule 14A filed April 11, 2008, File No. 000-27876
Dear Mr. Kronforst:
     We have received your letter dated February 24, 2009 regarding your additional comments in connection with our response letter dated February 2, 2009 and the above-referenced filing. Below is our written response to your comment.
Definitive Proxy Statement Filed April 11, 2008
Comment 1. — Executive Compensation, Compensation Elements in 2007, page 20. We have reviewed your responses to prior comment numbers 1 and 2. We do not believe that the revised tabular disclosure set forth in your response conforms to the disclosure requirements of Item 402(d) of Regulation S-K. The tabular disclosure you have included on page 2 of your response for your cash incentive plan omits columns (c) and (e) of the table. See Item 402(d)(2)(iii) of Regulation S-K. In addition, the table includes three columns (“Actual Awards Paid in 2007,” “Actual Awards Paid in 2008,” and “Total Actual Awards Paid”) that are not contemplated by Item 402(d). Similarly, the tabular disclosure on page 4 for your equity incentive plan appears to omit column (f), and includes a column (“Actual Awards”) not contemplated by Item 402(d). See Item 402(d)(2)(iv) of Regulation S-K. Please Advise.
     We have revised our tabular disclosure to conform to the disclosure requirements of Item 402(d) of Regulation S-K, as well as providing footnote disclosures to further explain columns (c) and (e). Please see Exhibit A attached hereto. We will conform our future tabular disclosures to Exhibit A in all future filings with the SEC.

 

 

Mr. Mark Kronforst
Page 2
March 10, 2009
     Please feel free to contact me at telephone: (480) 308-3421, Michael Bridge, Senior Vice President and General Counsel, at telephone: (480) 308-3460, or Paul Hurdlow at DLA Piper US LLP, JDA’s outside counsel, at telephone: (512) 457-7020 should you have any further questions or comments.
         
  Sincerely,


Kristen L. Magnuson
Executive Vice President and
Chief Financial Officer
 		  
     
     
     
 

2

 

GRANTS OF PLAN-BASED AWARDS
                                                                                         
                                                                    All Other              
                                                            All Other     Option Awards:              
                                                            Stock Awards:     Number of              
            Estimated Future Payouts Under     Estimated Future Payouts Under     Number of     Securities     Exercise or     Grant Date Fair  
            Non-Equity Incentive Plan Awards     Equity Incentive Plan Awards     Shares of     Underlying     Base Price of     Value of Stock  
    Grant     Threshold     Target     Maximum     Threshold     Target     Maximum     Stock or Units     Options     Option Awards     and Option Awards  
Name   Date     ($)     ($)     ($)     (#)     (#)     (#)     (#)     (#)     ($/Sh)     ($)  
          (1)     (2)     (3)     (4)     (5)     (6)     (7)                    
Hamish N. Brewer
     3/13/07     $ 0     $ 350,000               0       65,905       82,381                             $ 955,640  
 
     5/14/07                               0       8,721       10,901                               153,384  
 
                                                                                
 
                                     0       74,626       93,283                             $ 1,109,024  
Kristen L. Magnuson
     3/13/07       0       225,000               0       32,953       41,191                             $ 477,835  
 
     5/14/07                               0       4,360       5,450                               76,674  
 
                                                                                
 
                                     0       37,313       46,641                             $ 554,509  
Christopher J. Koziol
     3/13/07       0       275,000               0       46,134       57,668                             $ 668,963  
 
     5/14/07                               0       6,104       7,630                               107,347  
 
                                                                                
 
                                     0       52,238       65,298                             $ 776,310  
Philip Boland
     3/13/07       0       250,000               0       19,772       24,715                             $ 286,707  
 
     5/14/07                               0       2,616       3,270                               46,001  
 
                                                                                
 
                                     0       22,388       27,985                             $ 332,708  
Laurent F. Ferrere II
     7/20/07       0       250,000               0       15,000       18,750                             $ 306,544  
 
     7/9/07                                                       20,000                     $ 394,800  
 
(1)   Executive officers receive no cash bonus if the Company’s actual 2007 EBITDA performance is less than or equal to the minimum 2007 EBITDA performance threshold of $70,000,000. However, if the actual 2007 EBITDA performance is greater than $70,000,000 but less than $75,000,000, the executive officers receive 10% of the targeted cash bonus for every one million dollars of EBITDA achieved in excess of $70,000,000 threshold, pro-rated to the actual EBITDA achieved; if the actual 2007 EBITDA performance is $75,000,000, executive officers receive 50% of the targeted cash bonus; and if the actual 2007 EBITDA performance is greater than $75,000,000 but less than $85,000,000, the executive officers receive 50% of the targeted cash bonus plus 5% of the targeted cash bonus for every one million dollars of EBITDA achieved in excess of $75,000,000, pro-rated to the actual EBITDA achieved.
 
(2)   Executive officers receive 100% of their targeted cash bonus if the Company’s actual 2007 EBITDA performance is equal to the 2007 targeted EBITDA performance threshold of $85,000,000.
 
(3)   Executive officers have an unlimited cash bonus potential if the Company’s actual 2007 EBITDA performance exceeds the 2007 targeted EBITDA performance threshold of $85,000,000. Under the terms of the 2007 Cash Incentive Bonus Plan, if the Company exceeds the 2007 targeted EBITDA performance threshold, the executive officers will receive 100% of their targeted cash bonus plus 5% of the targeted cash bonus for every one million dollars of EBITDA achieved in excess of the $85,000,000, pro rated to the actual EBITDA dollar amount. The Company achieved 99.8% of the $85,000,000 EBITDA performance threshold for 2007. The Company applied the bonus calculation formulas under the 2007 Cash Incentive Bonus Plan which resulted in the executive officers earning 98.5% of the target cash bonus as follows:
EXHIBIT A

 

GRANTS OF PLAN-BASED AWARDS
                         
    Actual Cash Bonus Awards Earned for 2007
    Paid in 2007   Paid in 2008   Total Award
 
                        
Hamish N. Brewer
     218,750       126,000       344,750  
Kristen L. Magnuson
     140,625       81,000       221,625  
Christopher J. Koziol
     171,875       99,000       270,875  
Philip Boland
     161,200       90,000       251,200  
Laurent F. Ferrere II
     62,500       90,000       152,500  
(4)   The Compensation Committee of the Board of Directors approved targeted awards of contingently issuable restricted stock units (“RSU Awards”) to the executive officers on the dates listed in the table. The RSU Awards were designed to incent the management team if the Company was able to successfully integrate the acquisition of Manugistics Group, Inc. and achieve a 2007 EBITDA performance threshold of $70,000,000. None of the RSU Awards will be earned or vest if the Company’s actual 2007 EBITDA performance is less than or equal to the minimum 2007 EBITDA threshold of $70,000,000. However, if the actual 2007 EBITDA performance is greater than $70,0000,000 but less than $75,000,000 or greater than $75,000,000 but less than $85,000,000, the exective officers will receive a pro-rated RSU Awards calculated as follows:
$70,000,000 ≤ $75,000,000   (0.5 * RSU Award) * (1-((75,000,000 - 2007 Actual EBITDA performance)/5,000,000)
 
$75,000,000 ≤ $85,000,000   (0.5 * RSU Award) + ((0.5 * RSU Award) * (1- ((85,000,000 - 2007 Actual EBITDA performance)/10,000,000)))
    These RSU Awards vest 50% upon determination of the actual 2007 EBITDA performance (January 28, 2008) with the remaining 50% vesting ratably over the subsequent 24-month period.
 
(5)   Executive officers receive 100% of the RSU Awards if the Company’s actual 2007 EBITDA performance is equal to the 2007 targeted EBITDA performance threshold of $85,000,000. The RSU Awards vest 50% upon determination of the actual 2007 EBITDA performance (January 28, 2008) with the remaining 50% vesting ratably over the subsequent 24-month period.
 
(6)   Executive officers will receive up to 125% of the RSU Awards if the Company’s Actual 2007 EBITDA Performance exceeds the 2007 targeted EBITDA performance threshold of $85,000,000. Under the terms of the RSU Awards, if the Company exceeds the 2007 targeted EBITDA performance threshold, the executive officers will receive 100% of the targeted RSU Awards plus an additional 2.5% of their targeted RSU Award for every $1,000,000 in actual EBITDA achieved in excess of $85,000,000 up to a maximum of $95,000,000. The Company achieved 99.8% of the $85,000,000 EBITDA performance threshold for 2007. The Company applied the calculation formulas under the RSU Awards which resulted in the executive officers earning 99.25% of their targeted RSU Awards as follows:.
         
    Actual
    RSU Awards
    Earned for 2007
 
        
Hamish N. Brewer
     74,066  
Kristen L. Magnuson
     37,033  
Christopher J. Koziol
     51,846  
Philip Boland
     22,220  
Laurent F. Ferrere II
     14,888  
(7)   Mr. Ferrere was granted 20,000 shares of restricted stock upon commencement of his employment on July 9, 2007. The restricted stock will vest 25% on the first anniversary of Mr. Ferrere’s employment and the remaining 75% will vest ratably thereafter over 36 months.
EXHIBIT A