EX-3.3 2 a05-3953_1ex3d3.htm EX-3.3

Exhibit 3.3

 

CHARTER OF THE COMPENSATION, BENEFITS AND

GOVERNANCE COMMITTEE

OF THE BOARD OF DIRECTORS

OF METALS USA, INC.

 

This Charter identifies the purpose, composition, meeting requirements, committee responsibilities, annual evaluation procedures and studies of the Compensation, Benefits and Governance Committee (the “Committee”) of the Board of Directors (the “Board”) of Metals USA, Inc., a Delaware corporation (the “Company”).

 

I.                                         PURPOSE

 

The Committee has been established to: (a) assist the Board in ensuring that a proper system of long-term and short-term compensation is in place to provide performance-oriented incentives to management, and that compensation plans are appropriate and competitive and properly reflect the objectives and performance of management and the Company; (b) discharge the Board’s responsibilities relating to compensation of the Company’s executive officers; (c) evaluate the Company’s Chief Executive Officer and set his or her remuneration package; (d) prepare an annual report on executive compensation for inclusion in the Company’s annual proxy statement; (e) make recommendations to the Board with respect to incentive-compensation plans and equity-based plans; (f) develop and recommend to the Board a set of corporate governance principles for the Company; (g) oversee the implementation of processes and procedures for the annual review of corporate management, Board members and its standing committees; (h) consider and report to the Board on all matters relating to the selection and qualification of the Board candidates nominated to the Board; and (i) perform such other functions as the Board may from time to time assign to the Committee.  In performing its duties, the Committee shall seek to maintain an effective working relationship with the Board and the Company’s management.

 

II.                                     COMPOSITION

 

The Committee shall be composed of at least three, but not more than five, members (including a Chairperson), the majority of whom shall be (a) “independent directors,” as such term is defined in the rules and regulations of the Nasdaq (as in effect from time to time) and (b) “non-employee directors,” as such term is defined in Rule 16b-3 under the Securities Exchange Act of 1934, as amended, or any successor provision thereto.  The members of the Committee and the Chairperson shall be selected annually by the Board and serve at the pleasure of the Board.  A Committee member (including the Chairperson) may be removed at any time, with or without cause, by the Board.  The Board may designate one or more independent directors as alternate members of the Committee, who may replace any absent or disqualified member or members at any meetings of the Committee.  No person may be made a member of the Committee if his or her service on the Committee would violate any restriction on service imposed by any rule or regulation of the United States Securities and Exchange Commission or any securities exchange or market on which shares of the common stock of the Company are traded.

 


 

III.                                 MEETING REQUIREMENTS

 

The Committee shall meet as necessary, but at least once each year, to enable it to fulfill its responsibilities.  The Committee shall meet at the call of its Chairperson or the Chairman of the Board.  The Committee may meet by telephone conference call or by any other means permitted by law or the Company’s Bylaws.  A majority of the members of the Committee shall constitute a quorum.  The Committee shall act on the affirmative vote of a majority of members present at a meeting at which a quorum is present.  Without a meeting, the Committee may act by unanimous written consent of all members.  The Committee shall determine its own rules and procedures, including designation of a chairperson pro tempore, in the absence of the Chairperson, and designation of a secretary.  The secretary need not be a member of the Committee and shall attend Committee meetings and prepare minutes.  The Committee shall keep written minutes of its meetings, which shall be recorded or filed with the books and records of the Company.  Any member of the Board shall be provided with copies of such Committee minutes if requested.

 

The Committee may ask members of management or others whose advice and counsel are relevant to the issues then being considered by the Committee, to attend any meetings and to provide such pertinent information as the Committee may request.

 

The Chairperson of the Committee shall be responsible for leadership of the Committee, including preparing the agenda, presiding over Committee meetings, making Committee assignments and reporting the Committee’s actions to the Board from time to time (but at least once each year) as requested by the Board.

 

The Chief Executive Officer may not be present during voting or deliberations with respect to his or her compensation.

 

IV.                                COMMITTEE RESPONSIBILITIES

 

In carrying out its oversight responsibilities, the Committee’s policies and procedures should remain flexible to enable the Committee to react to changes in circumstances and conditions so as to ensure the Company remains in compliance with applicable legal and regulatory requirements.  In addition to any other responsibilities required of the Committee by the Nasdaq rules (as in effect from time to time), the Committee shall:

 

A.                                   Chief Executive Officer Compensation and Evaluation

 

1.                                       To (a) review and approve goals and objectives relevant to the Chief Executive Officer’s compensation package, (b) establish a procedure for evaluating the Chief Executive Officer’s performance, (c) annually evaluate such performance in light of the goals and objectives established and (d) have the Committee Chairperson review, after completion of the annual evaluation, with the Chief Executive Officer the results of the Committee’s evaluation of the Chief Executive Officer’s performance; and

 

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2.                                       To review, at least annually, and set the base salary and annual and long-term incentive compensation of the Chief Executive Officer, after taking into account the annual evaluation of the Chief Executive Officer referred to in the preceding paragraph.

 

In discharging the responsibilities set forth under this Section IV.A, the Committee may consider (as appropriate and as contemplated by Company policies, plans and programs) individual, team, business unit, regional and Company-wide performance and results against applicable pre-established annual and long-term performance goals, taking into account shareholder return, economic and business conditions, remuneration given to the Chief Executive Officer in the past and comparative and competitive compensation and benefit performance levels.  The Committee shall not be precluded from approving compensation awards (with the Board’s ratification) as may be required to comply with applicable tax laws (e.g., IRS Rule 162(m)).

 

B.                                     Other Executive Officers Compensation and Evaluations

 

1.                                       To (a) review and approve goals and objectives relevant to the other executive officers’ compensation package, (b) establish a procedure for evaluating the such executive officers’ performance, (c) annually evaluate such performance in light of the goals and objectives established and (d) have the Committee Chairperson review, after completion of the annual evaluation, with each executive officer the results of the Committee’s evaluation of such executive officer’s performance; and

 

2.                                       To review, at least annually, and set the base salary and annual and long-term incentive compensation of the executive officers, after taking into account the annual evaluation of each executive officer referred to in the preceding paragraph.

 

In discharging the responsibilities set forth under this Section IV.B, the Committee may consider (as appropriate and as contemplated by Company policies, plans and programs) individual, team, business unit, regional and Company-wide performance and results against applicable pre-established annual and long-term performance goals, taking into account shareholder return, economic and business conditions, remuneration given to each executive officer in the past and comparative and competitive compensation and benefit performance levels.  The Committee shall not be precluded from approving compensation awards (with the Board’s ratification) as may be required to comply with applicable tax laws (e.g., IRS Rule 162(m)).

 

C.                                     Incentive-Compensation and Equity-Based Plans

 

1.                                       To review and to make periodic recommendations to the Board as to the general compensation and benefits policies and practices of the Company, including incentive-compensation plans and equity-based plans;

 

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2.                                       To review and adopt, and to recommend to the Board (and for shareholder approval where required by applicable law, the Certificate of Incorporation or Bylaws), compensation and benefits policies, plans and programs and amendments thereto, determining eligible employees and the type, amount and timing of such compensation and benefits; and

 

3.                                       To oversee the administration of such policies, plans and programs and, on an ongoing basis to monitor them to assure that they remain competitive and within the Board’s compensation objectives for executive officers and other members of senior management.

 

D.                                    Governance Policies and Procedures

 

1.                                       To develop and recommend to the Board a set of corporate governance policies and procedures for the corporation and maintain and monitor such corporate governance policies and procedures adopted by the Board.

 

2.                                       To oversee and arrange the annual process of evaluating the performance of the Board and the corporation’s management and review each incumbent director’s past performance and contributions to the corporation.

 

3.                                       To make recommendations to the Board concerning:

 

a.                                       the size and composition of the Board,

b.                                      The size and composition of each standing committee of the Board, and

c.                                       The responsibilities of each standing committee of the Board.

 

E.                                      Board Nominations

 

1.                                       To develop and recommend to the Board specific guidelines and criteria for selecting nominees for election to the Board.

 

2.                                       To review the qualifications of and recommend to the Board:

 

a.                                       Those persons to be nominated for election as a director and submitted to the shareholders for election at each annual meeting of shareholders, and

b.                                      The nominees for directors to be elected by the Board to fill any vacancies or newly created directorships.

 

F.                                      Other Duties

 

1.                                       To prepare an annual executive compensation report for the shareholders of the Company in accordance with the rules and regulations of the United States Securities and Exchange Commission;

 

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2.                                       The Committee shall have such powers and authority as may be necessary or convenient for the purpose of carrying out its responsibilities, including the authority to delegate responsibility for specific functions to subcommittees of the Committee.

 

3.                                       To perform such other duties as the Board may assign to the Committee.

 

V.                                    ANNUAL EVALUATION PROCEDURES

 

The Committee shall annually assess its performance to confirm that it is meeting its responsibilities under this Charter.  In this review, the Committee shall consider, among other things, (a) the appropriateness of the scope and content of this Charter, (b) the appropriateness of matters presented for information and approval, (c) the sufficiency of time for consideration of agenda items, (d) frequency and length of meetings and (e) the quality of written materials and presentations.  The Committee may recommend to the Board such changes to this Charter as the Committee deems appropriate.

 

VI.                                STUDIES

 

The Committee may conduct or authorize studies of matters within the Committee’s scope of responsibilities as described above, and may retain, at the expense of the Company, independent counsel or other consultants necessary to assist the Committee in any such studies, if authorized by the Board.  The Committee shall have the authority to retain and terminate:  (a) a compensation consultant to be used to survey the compensation practices in the Company’s industry and to provide advice so that the Company can maintain its competitive ability to recruit and retain highly qualified personnel; or (b) a search firm to assist with the identification of director candidates.  The Committee shall have the authority to negotiate and approve the fees and retention terms of any compensation consultant or search firm retained.

 

VII.                            MISCELLANEOUS

 

Nothing contained in this Charter is intended to expand applicable standards of liability under statutory or regulatory requirements for the directors of the Company or members of the Committee.  The purposes and responsibilities outlined in this Charter are meant to serve as guidelines rather than as inflexible rules and the Committee is encouraged to adopt such additional procedures and standards as it deems necessary from time to time to fulfill its responsibilities.  This Charter, and any amendments thereto, shall be displayed on the Company’s web site and a printed copy of such shall be made available to any shareholder of the Company who requests it.

 

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