DEF 14A 1 snx-def14a_20210316.htm DEF 14A snx-def14a_20210316.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.  )

Filed by the Registrant  

Filed by a Party other than the Registrant  

Check the appropriate box:

Preliminary Proxy Statement

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

Definitive Proxy Statement

Definitive Additional Materials

Soliciting Material Pursuant to §240.14a-12

SYNNEX Corporation

(Name of Registrant as Specified in Its Charter)

 

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

 

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SYNNEX CORPORATION
44201 Nobel Drive
Fremont, California 94538
(510) 656-3333

February 10, 2021

Dear Stockholder:

Our 2021 Annual Meeting of Stockholders will be completely virtual and conducted via live audio webcast because of the public health impact of the COVID-19 pandemic. The matters to be acted upon are described in the Notice of Annual Meeting of Stockholders and Proxy Statement.  The formal Notice of Annual Meeting and the Proxy Statement have been made a part of this invitation.

 

You will be able to attend the Annual Meeting by first registering at http://viewproxy.com/synnex/2021/htype.asp. You will receive a meeting invitation by e-mail with your unique join link along with a password prior to the meeting date. Stockholders will be able to listen, vote and submit questions during the virtual meeting.

 

Whether or not you attend the Annual Meeting, it is important that your shares be represented and voted at the Annual Meeting. After reading the Proxy Statement, please promptly vote and submit your proxy by dating, signing and returning the enclosed proxy card in the enclosed postage-prepaid envelope, or vote by telephone or via the Internet. Your shares cannot be voted unless you submit your proxy, vote by telephone or via the Internet or attend the virtual Annual Meeting.

 

The Board of Directors and management look forward to the Annual Meeting.

 

 

Sincerely,

 

 

 

/s/ Simon Y. Leung

 

Simon Y. Leung

 

Senior Vice President, General Counsel

 

and Corporate Secretary

 

 


 

SYNNEX Corporation

________________________________________

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

To Be Held March 16, 2021

________________________________________

To our Stockholders:

SYNNEX Corporation will hold its Annual Meeting of Stockholders at 10:00 a.m., Pacific Time, on March 16, 2021, virtually and via live audio webcast.

We are holding this Annual Meeting:

 

to elect eleven directors to serve until the 2022 Annual Meeting of Stockholders or until their successors are duly elected and qualified;

 

to hold an advisory vote on Executive Compensation;

 

to ratify the appointment of KPMG LLP as our independent registered public accountants; and

 

to transact such other business as may properly come before the Annual Meeting and any adjournments or postponements of the Annual Meeting.

Only stockholders of record at the close of business on January 22, 2021 are entitled to notice of, and to vote at this Annual Meeting and any adjournments or postponements of the Annual Meeting. For ten days prior to the Annual Meeting, a complete list of stockholders entitled to vote at the Annual Meeting will be available at the Corporate Secretary’s office at 44201 Nobel Drive, Fremont, California 94538.

It is important that your shares are represented at this Annual Meeting. Even if you plan to attend the Annual Meeting, we hope that you will promptly vote and submit your proxy by dating, signing and returning the enclosed proxy card in the enclosed envelope, or vote by telephone or via the Internet. This will not limit your rights to attend or vote at the Annual Meeting.

 

 

By Order of the Board of Directors,

 

 

 

 

 

/s/ Simon Y. Leung

 

Simon Y. Leung

 

Senior Vice President, General Counsel

 

and Corporate Secretary

 

Fremont, California

February 10, 2021

 

Important Notice Regarding the Availability of Proxy Materials

for the Stockholder Meeting to Be Held on March 16, 2021

 

Our Proxy Statement for our 2021 Annual Meeting of Stockholders, along with the proxy card, our Annual Report on Form 10-K for the fiscal year ended November 30, 2020 and Letter to Stockholders dated February 10, 2021, are available at www.viewproxy.com/synnex/2021.

 


 

 

TABLE OF CONTENTS

 

 

 

 

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PROXY SUMMARY

This summary highlights information contained elsewhere in this Proxy Statement. This summary does not contain all of the information that you should consider. You should read the entire Proxy Statement carefully before voting.

Annual Meeting

 

 

      Date and Time

March 16, 2021 at 10:00 a.m. Pacific Time

 

 

 

 

      Place

http://viewproxy.com/synnex/2021/htype.asp

 

 

 

 

      Record Date and Voting

January 22, 2021

 

 

 

 

 

Stockholders as of the record date are entitled to vote. Each share of common stock is entitled to one vote for each director nominee and one vote for each of the other proposals to be voted on

Spin-off of Concentrix Corporation

On December 1, 2020, SYNNEX completed the separation of its Concentrix business from SYNNEX (the “Spin-off”), which resulted in two independent, publicly traded companies: SYNNEX and Concentrix Corporation. As a result of the Spin-off, Christopher Caldwell, formerly Executive Vice President and President of SYNNEX' Concentrix business, became President and Chief Executive Officer of Concentrix Corporation and resigned from SYNNEX.

 

Meeting Agenda and Voting Matters

Proposal (1) Election of Directors. Each director nominee is elected annually by a plurality vote. We are asking stockholders to vote FOR each director nominee.  All of our director nominees have experience or qualifications in, among other areas, Leadership, Strategy, Business Management, Mergers and Acquisitions, and Board Governance; their additional experience and qualifications are listed below.

 

Name and Principal Occupation

Age

Director Since

Experience/ Qualifications

Independent

Committee

Membership

Current Other

U.S.-Listed

Public

Company

Boards

Kevin Murai
Chairman of the Board, Former President and CEO, SYNNEX Corporation

57

2008

Distribution, Technology, Supply-Chain Logistics, International Business

 

Executive

0

Dwight Steffensen
Lead Director, Former Chairman and CEO, Merisel, Inc.

77

2002

Distribution, Technology, Finance

X

Audit

Executive

0

Dennis Polk
President and CEO, SYNNEX Corporation

 

54

2012

Distribution, Finance, Supply-Chain Logistics, International Business, Operational Management

 

Executive (Chair)

2

Fred Breidenbach
Principal, FA Breidenbach & Associates and Former President and COO of Gulfstream Aerospace Corporation

74

2003

Manufacturing, Supply-Chain Logistics, International Business, Operational Management

X

Compensation
Nominating

0

Laurie Simon Hodrick

A. Barton Hepburn Professor Emerita of Economics at Columbia Business School

58

2019

Capital Markets, Finance, Mergers & Acquisitions

X

Audit

1

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Hau Lee
Professor of Operations, Information and Technology, Stanford University Graduate School of Business

68

2012

Technology, Supply-Chain Logistics, International Business

X

Compensation

Nominating

 

0

Matthew Miau
Chairman, MiTAC Holdings Corporation, Synnex Technology International Corp., UPC Technology Corp., and Lien Hwa Industrial Corp.

74

1992

Distribution, Manufacturing, International Business; Long-Term Investor Perspective

 

 

0

   Ann Vezina

Former Corporate Vice President, Human Resources, Xerox Business Services LLC

58

2017

Personnel Management, Technology, International Business

X

Audit

1

Thomas Wurster
Former Senior Partner and Managing Director, The Boston Consulting Group

68

2012

Distribution, Technology, Supply-Chain Logistics

X

Compensation

Nominating

 

0

Duane Zitzner
Consultant and Former Executive Vice President, Personal Systems Group, Hewlett-Packard Company

73

2007

Manufacturing, Technology, Supply-Chain Logistics, International Business

X

Nominating (Chair)

Compensation

 

0

Andrea Zulberti
Former Managing Director, Barclays Global Investors (now BlackRock, Inc.)

69

2010

Finance, Technology, International Business

X

Audit (Chair)

Executive

0

 

Current Compensation Committee Chair and Nominating and Corporate Governance Committee member Gregory Quesnel will retire from the Board of Directors on March 1, 2021 and is not standing for re-election.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proposal (2) Advisory Vote on Executive Compensation. We are asking stockholders to approve on an advisory basis our named executive officer compensation. The Board recommends a FOR vote because it believes that our compensation policies and practices are effective in achieving our company’s goals of recognizing sustained financial and operating performance and leadership excellence, and aligning our executives’ long-term interests with those of our stockholders.

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Executive Compensation Elements

Type

 

Form

Terms

Equity

•  

Stock Options

Options generally vest 20% on the first anniversary of the grant date and 1/60th per month thereafter while employed.

 

•  

Restricted Stock Awards

RSAs generally vest 20% per year while employed.

 

•  

Restricted Stock Units

Long-Term Incentive RSUs generally cliff vest after three years, contingent upon achievement of three-year Company performance measures and continuous employment during the three-year period.

Cash

•  

Salary

Generally eligible for annual increases.

 

•  

Management Incentive Bonus

Based on achievement of Company fiscal year performance goals and individual performance.

Other

•  

Benefits

Medical, Dental and Vision Insurance, Life Insurance, 401(k) contributions.


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2020 Summary Compensation Table

 

Name & Principal Position

 

Year

 

Salary

($)(1)

 

 

Bonus ($)

 

 

Stock

Awards

($)(2)(3)

 

 

Option

Awards

($)(2)

 

 

Non-Equity Incentive Plan Compensation ($)(4)

 

 

All Other Compensation ($)(5)

 

 

Total ($)

 

Dennis Polk

 

2020

 

 

725,000

 

 

 

 

 

 

 

 

 

 

 

 

2,189,269

 

 

 

9,860

 

 

 

2,924,129

 

President, Chief

 

2019

 

 

766,827

 

 

 

 

 

 

1,496,740

 

 

 

1,549,983

 

 

 

2,358,112

 

 

 

31,333

 

 

 

6,202,995

 

Executive Officer

 

2018

 

 

642,087

 

 

 

 

 

 

1,642,430

 

 

 

2,599,982

 

 

 

2,268,127

 

 

 

21,671

 

 

 

7,174,297

 

and Director (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marshall Witt

 

2020

 

 

500,000

 

 

 

 

 

 

 

 

 

 

 

 

611,247

 

 

 

4,535

 

 

 

1,115,782

 

Chief Financial Officer

 

2019

 

 

500,000

 

 

 

 

 

 

468,992

 

 

 

349,967

 

 

 

603,957

 

 

 

13,258

 

 

 

1,936,174

 

 

 

2018

 

 

482,417

 

 

 

 

 

 

406,500

 

 

 

349,979

 

 

 

517,594

 

 

 

12,390

 

 

 

1,768,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Michael Urban

 

2020

 

 

550,000

 

 

 

 

 

 

 

 

 

 

 

 

1,376,272

 

 

 

6,422

 

 

 

1,932,694

 

President, Worldwide

 

2019

 

 

446,346

 

 

 

 

 

 

1,563,319

 

 

 

999,965

 

 

 

1,008,000

 

 

 

10,744

 

 

 

4,028,374

 

Technology Solutions

Distribution (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peter Larocque

 

2020

 

 

540,000

 

 

 

 

 

 

 

 

 

 

 

 

1,351,249

 

 

 

5,912

 

 

 

1,897,161

 

President, North America

 

2019

 

 

568,932

 

 

 

 

 

 

820,046

 

 

 

464,982

 

 

 

1,568,963

 

 

 

18,435

 

 

 

3,441,358

 

Technology Solutions

 

2018

 

 

508,385

 

 

 

 

 

 

676,402

 

 

 

464,979

 

 

 

1,020,913

 

 

 

15,925

 

 

 

2,686,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Christopher Caldwell

 

2020

 

 

575,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,997

 

 

 

581,997

 

Executive Vice President

 

2019

 

 

608,173

 

 

 

 

 

 

4,007,871

 

 

 

999,996

 

 

 

1,307,543

 

 

 

20,900

 

 

 

6,944,483

 

and President of Concentrix

 

2018

 

 

504,658

 

 

 

 

 

 

825,235

 

 

 

999,989

 

 

 

1,441,540

 

 

 

14,015

 

 

 

3,785,437

 

Corporation (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*See 2020 Summary Compensation Table and related notes on page 39 for additional information.

 

.

 

(1)

Includes base salary and, for fiscal 2019 for Messrs. Polk, Larocque, and Caldwell also includes unused vacation payout.

 

(2)

For the fiscal year ended November 30, 2020, annual equity grants to associates, including executive officers, were structured so that the associates had no vested right to underlying equity before January 2021, although they received service credit from October 2020; these awards were not subject to bifurcation during the Spin-off. Therefore, they are not included in the Summary Compensation Table for fiscal 2020 but will be included in the Summary Compensation Table for fiscal 2021.  Regarding prior fiscal years’ awards, amounts listed in these columns represent the grant date fair value of stock awards and option awards recognized by us under FASB ASC Topic 718, disregarding estimated forfeitures, rather than amounts realized by the named individuals. For valuation assumptions used to calculate the fair value of our stock and option awards, see Note 4 “Share-Based Compensation” included in our Annual Report on Form 10-K for fiscal year ended November 30, 2020.

 

(3)

Performance-based RSUs granted under our LTI program provide an opportunity for associates to receive common stock if a performance measure is met for the three-year performance period. If the minimum performance measure is not met, no award is earned. If at least the minimum performance measure is attained, awards can range from 50% of the target number of shares to 200% of the target number of shares underlying the performance-based RSUs. The amounts in the table above reflect the aggregate grant date fair values at the target number of the performance-based RSUs granted under our LTI program described in the 2020 Summary Compensation Table Narrative, calculated in accordance with accounting guidance. Due to the pending Spin-off during fiscal year 2020, we did not grant performance-based RSUs under our LTI program to the executive officers during fiscal year 2020.  Regarding prior fiscal years’ awards, if our performance results in a future payout of the performance-based RSUs at the maximum level, the grant date fair value of the performance-based RSUs would have been as follows: Mr. Polk for fiscal year 2019 $1,443,567 and for fiscal year 2018 $984,984; Mr. Witt for fiscal year 2019 $398,155 and for fiscal year 2018 $273,024; Mr. Urban for fiscal year 2019 $877,055; Mr. Larocque for fiscal year 2019 $860,163 and for fiscal year 2018 $572,941; and Mr. Caldwell for fiscal year 2019 $915,849 and for fiscal year 2018 $550,606. The aggregate grant date fair value of the stock awards granted (including restricted stock and performance-based RSUs) would have been as follows: Mr. Polk for fiscal year 2019 $2,218,524 and for fiscal year 2018 $2,134,922; Mr. Witt for fiscal year 2019 $668,070 and for fiscal year 2018 $543,012; Mr. Urban for fiscal year 2019 $2,001,847; Mr. Larocque for fiscal year 2019 $1,250,127 and for fiscal year 2018 $962,872; and Mr. Caldwell for fiscal year 2019 $4,465,795 and for fiscal year 2018 $1,100,538. For additional information on grant date fair value and estimated future payouts of stock awards, see the

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2020 Grants of Plan-Based Awards table on page 41, and to see the value of stock awards actually realized by the named executive officers in fiscal 2020, see the 2020 Option Exercises and Stock Vested table on page 44.

 

(4)

For each fiscal year, represents performance-based bonus awards under the Management Incentive Plan earned in that fiscal year, but paid in the subsequent fiscal year, as described in the Compensation Discussion and Analysis beginning on page 26.

 

(5)

The following outlines all other additional compensation for fiscal year 2020 required by SEC rules to be separately quantified: for Mr. Polk, Company contributions to 401(k) retirement savings plan of $1,400 and dividend payments on unvested RSAs of $8,460; for Mr. Witt, Company contributions to 401(k) retirement savings plan of $1,400 and dividend payments on unvested RSAs of $3,135; for Mr. Urban, Company contributions to 401(k) retirement savings plan of $1,400 and dividend payments on unvested RSAs of $5,022; for Mr. Larocque, Company contributions to 401(k) retirement savings plan of $1,400 and dividend payments on unvested RSAs of $4,512; and for Mr. Caldwell, Company contributions to 401(k) retirement savings plan of $1,400 and dividend payments on unvested RSAs of $5,597. The dividend amounts in this column represent the dollar value of dividends paid during the fiscal year ended November 30, 2020 (as part of a dividend paid to all of our stockholders) on unvested restricted stock awards; such dividends were not factored into the grant date fair value of stock awards required to be reported in the stock awards column of the table.

 

(6)

Mr. Polk became our President and Chief Executive Officer on March 1, 2018 and served as our Chief Operating Officer prior to that during the periods set forth in this table.

 

(7)

Mr. Urban became our President, Worldwide Technology Solutions Distribution, on February 1, 2019.

 

(8)

As a result of the Spin-off, on December 1, 2020, Mr. Caldwell, formerly Executive Vice President and President of SYNNEX' Concentrix business, became President and Chief Executive Officer of Concentrix Corporation and resigned from SYNNEX.

 

Proposal (3) Ratification of Auditors. As a matter of good corporate governance, we are asking our stockholders to vote FOR the ratification of the selection of KPMG LLP as our independent auditors for 2021.

 

 

vi


 

 

SYNNEX CORPORATION

________________________________________

PROXY STATEMENT

________________________________________

INFORMATION CONCERNING VOTING AND SOLICITATION

This Proxy Statement is being furnished to you in connection with the solicitation by the Board of Directors of SYNNEX Corporation, a Delaware corporation, of proxies to be used at our 2021 Annual Meeting of Stockholders and any adjournments or postponements thereof.

 

Our Annual Meeting will be held at 10:00 a.m., Pacific Time, on March 16, 2021 virtually and via live audio webcast. This Proxy Statement and the accompanying form of proxy card are being mailed to stockholders on or about February 10, 2021.

 

Appointment of Proxy Holders

The Board asks you to appoint Dennis Polk and Simon Leung as your proxy holders to vote your shares at the Annual Meeting. You make this appointment by voting the enclosed proxy card using one of the voting methods described below.

If appointed by you, the proxy holders will vote your shares as you direct on the matters described in this Proxy Statement. In the absence of your direction, they will vote your shares as recommended by the Board.

Unless you otherwise indicate on the proxy card, you also authorize your proxy holders to vote your shares on any matters not known by the Board at the time this Proxy Statement was printed and which, under our Bylaws, may be properly presented for action at the Annual Meeting.

Who Can Vote

Only stockholders who owned shares of our common stock at the close of business on January 22, 2021, the record date for the Annual Meeting, can vote at the Annual Meeting. As of the close of business on the record date, we had 51,596,838 shares of common stock outstanding and entitled to vote. Each holder of common stock is entitled to one vote for each share held as of the record date. There is no cumulative voting in the election of directors.

How You Can Vote

You may vote your shares at the Annual Meeting in one of several ways, depending on how you own your shares.

By Internet. Stockholders of record may vote or submit proxies by following the Internet voting instructions described in the proxy card. Most stockholders who hold shares beneficially in street name may provide voting instructions by accessing the website specified on the voting instruction form provided by their brokers, banks or nominees rather than following the instructions on the proxy card. Please check the voting instruction form for Internet voting availability. Please be aware that if you vote over the Internet, you may incur costs such as Internet access charges for which you will be responsible. The deadline for Internet voting is 11:59 p.m., Eastern Daylight Time, the day before the meeting date.

Voting by Telephone. Stockholders of record may vote or submit proxies by following the telephone voting instructions described in the proxy card. Most stockholders who hold shares beneficially in street name may provide voting instructions by telephone by calling the number specified on the voting instruction form provided by their

1

 


 

brokers, banks or nominees rather than following instructions on the proxy card. Please check the voting instruction form for telephone voting availability. Please be aware that if you submit voting instructions by telephone, you may incur costs such as telephone access charges for which you will be responsible. The deadline for telephone voting is 11:59 p.m., Eastern Daylight Time, the day before the meeting date.

Voting by Mail. You may vote by dating, signing and returning your proxy card in the accompanying postage-prepaid return envelope. Sign your name exactly as it appears on the proxy. Stockholders who hold shares beneficially in street name may provide voting instructions by mail by completing, signing and dating the voting instruction forms provided by their brokers, banks or other nominees.

Voting at the Annual Meeting.  You may vote at the Annual Meeting.  If you hold shares through a bank or broker, you must obtain a proxy, executed in your favor, from the bank or broker to be able to vote at the Annual Meeting.  Voting by mail, telephone or Internet will not limit your right to vote at the Annual Meeting, if you decide to attend. You will be able to attend the Annual Meeting by first registering at http://viewproxy.com/synnex/2021/htype.asp. You will receive a meeting invitation by e-mail with your unique join link along with a password prior to the meeting date. Stockholders will be able to listen, vote and submit questions during the virtual meeting.

You may vote during the meeting by following the instructions that will be available on the virtual meeting website during the meeting.  If you are a registered holder, your virtual control number will be on your proxy card.  If you hold your shares beneficially through a bank or broker, you must provide a legal proxy from your bank or broker during registration and you will be assigned a virtual control number in order to vote your shares during the Annual Meeting. If you are unable to obtain a legal proxy to vote your shares, you will still be able to attend the Annual Meeting (but will not be able to vote your shares) so long as you demonstrate proof of stock ownership.

 

Instructions on how to connect and participate via the Internet, including how to demonstrate proof of stock ownership, are posted at http://viewproxy.com/synnex/2021/htype.asp. On the day of the annual meeting, you may only vote during the meeting by e-mailing a copy of your legal proxy to virtualmeeting@viewproxy.com in advance of the meeting.  There will be technicians ready to assist you with any technical difficulties you may have accessing the annual meeting live audio webcast. Please be sure to check in by 9:45 a.m., Pacific Time, on March 16, 2021, the day of the meeting, so that any technical difficulties may be addressed before the annual meeting live audio webcast begins. If you encounter any difficulties accessing the webcast during the check-in or meeting time, please email virtualmeeting@viewproxy.com or call 866-612-8937.

  

The Board recommends that you vote by Internet, telephone or by mail, as it is not practical for most stockholders to attend the Annual Meeting.  Even if you plan to attend the Annual Meeting, we recommend that you also submit your proxy or vote online or by telephone so that your vote will be counted if you later decide not to attend the Annual Meeting. Giving a proxy will not affect your right to vote your shares if you plan to vote at the Annual Meeting.

If you properly complete your proxy via the telephone or Internet, or by mail, then your shares will be voted as you direct.  If you properly complete your proxy but do not mark your voting preference, the proxy holders will vote your shares FOR the election of the nominees for director, FOR the approval of our executive compensation and FOR the ratification of the appointment of independent registered public accountants.

Revocation of Proxies

Stockholders of record can revoke their proxies or change their vote at any time before they are exercised in any of three ways:

 

by voting at the Annual Meeting;

 

by submitting written notice of revocation to the Corporate Secretary prior to the Annual Meeting; or

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by submitting a later-dated vote or another properly executed proxy of a later date prior to the Annual Meeting.

Beneficial stockholders can revoke any prior voting instructions by contacting the broker, bank, or other nominee that holds their shares or by voting at the Annual Meeting.

Required Vote

Directors are elected by a plurality vote, which means that the eleven nominees receiving the most affirmative votes will be elected. However, the Board has adopted a majority vote policy for director elections whereby if a director receives less than a majority of the votes cast for such director, the Board will review the outcome and make a determination as to the proper remedy. In its review, the Board will consider the totality of the circumstances surrounding the vote to evaluate the situation, and is authorized to remedy the situation as it deems appropriate, including requesting that the affected director resign from the Board. A “withhold” vote as to any director nominee will have no effect on the vote’s outcome because the candidates who receive the highest number of affirmative votes are elected, however, “withhold” votes may prevent a director from obtaining a majority of votes, which would trigger the aforementioned additional Board scrutiny. All other matters submitted for stockholder approval require the affirmative vote of the holders of a majority of shares present or represented by proxy and entitled to vote.

A quorum, which is a majority of the outstanding shares as of the record date, must be present to hold the Annual Meeting. A quorum is calculated based on the number of shares entitled to vote which are represented by the stockholders attending and by their proxy holders. If you indicate an abstention as your voting preference, your shares will be counted toward a quorum but they will not be voted on the matter.

Abstentions on any matters are treated as shares present or represented and entitled to vote on that matter and have the same effect as a vote against such matter.

Brokers who hold shares of our common stock for a beneficial owner have the discretion to vote on routine proposals when they have not received voting instructions from the beneficial owner.  If a broker indicates on the enclosed proxy card or its substitute that such broker does not have discretionary authority to vote on a particular matter (broker non-votes), those shares will be considered as present for purposes of determining the presence of a quorum but will not be treated as shares entitled to vote on that matter and therefore will have no effect on the vote.  Note that, if you are a beneficial owner and do not provide specific voting instructions to your broker, the broker that holds your shares will not be authorized to vote on the election of directors, nor will the broker be authorized to vote on the proposals other than the ratification of the appointment of KPMG LLP as the auditor for 2021.  Accordingly, we encourage you to provide voting instructions to your broker, whether or not you plan to attend the Annual Meeting.

Solicitation of Proxies

We are paying the cost of printing and mailing proxy materials. In addition to the solicitation of proxies by mail, solicitation may be made by our directors, officers and other associates by personal interview, telephone, facsimile or electronic mail. No additional compensation will be paid to these persons for solicitation. At this time we have not engaged a proxy solicitor. If we do engage a proxy solicitor we will pay the customary costs associated with such engagement. We will reimburse brokerage firms and others for their reasonable expenses in forwarding solicitation materials to beneficial owners of our common stock.

Important

Please promptly vote via the Internet or telephone or by signing, dating and returning the enclosed proxy card in the postage-prepaid return envelope so that your shares can be voted. This will not limit your rights to attend or vote at the Annual Meeting.

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PROPOSAL 1

ELECTION OF DIRECTORS

Directors and Nominees

Our Bylaws currently provide that the number of directors which shall constitute the whole Board shall be fixed from time to time by the Board or our stockholders. We currently have authorized eleven directors. At the Annual Meeting, eleven persons will be elected as members of the Board, each for a one-year term or until their successors are duly elected and qualified. The Nominating and Corporate Governance Committee of the Board of Directors has nominated, and the Board has designated, the eleven persons set forth below for election at the Annual Meeting.  All of the nominees were elected for their current term at the SYNNEX 2020 Annual Meeting of Stockholders held on March 17, 2020.  The proxies given to the proxy holders will be voted as directed and, if no direction is given, will be voted FOR the eleven nominees. The Board knows of no reason why any of these nominees should be unable or unwilling to serve. However, if for any reason any nominee should be unable or unwilling to serve, the proxies will be voted for any nominee designated by the Board to fill the vacancy.

General

Pursuant to the New York Stock Exchange (NYSE) listing standards, a majority of the members serving on the Board must be independent directors. The Board has determined that Messrs. Breidenbach, Lee, Steffensen, Wurster and Zitzner and Mses. Hodrick, Vezina and Zulberti have no material relationship with us and that each of these directors is an independent director. The Board currently has three racially diverse directors and three women directors. Certain additional information with respect to each nominee appears on the following pages, including their age (as of February 10, 2021), position (if any) with SYNNEX, business experience during at least the past five years and directorships of other publicly-owned corporations.

Business Experience of Nominees

Kevin Murai, 57, has served as Chairman of our Board of Directors since March 2018 and as a member of the Board since March 2008.  He previously served as our President and Chief Executive Officer from March 2008 to March 1, 2018, and as our Co-Chief Executive Officer from March 2008 until December 2008. Prior to SYNNEX, Mr. Murai was employed for 19 years at Ingram Micro Inc., during which he served in several executive management positions, including most recently as President, Chief Operating Officer and a member of the Board of Directors. Currently, he serves on the Board of Directors for StanCorp Financial Group, Inc., which on March 7, 2016 became a wholly-owned subsidiary of Meiji Yasuda Life Insurance Company and no longer publicly traded. From September 2018 until July 2019, he served on the Board of Directors for Red Hat, Inc., which on July 9, 2019 became a wholly-owned subsidiary of International Business Machines Corporation and no longer publicly traded. He holds a Bachelor of Applied Science degree in Electrical Engineering from the University of Waterloo in Ontario, Canada. As our President and Chief Executive Officer from 2008 until 2018, and as a former executive officer and member of the Board of Directors of Ingram Micro Inc., one of our competitors, we believe that Mr. Murai contributes his leadership skills, industry knowledge, technology background, and business experience to the Board. In addition, we believe that Mr. Murai’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.

Dwight Steffensen, 77, has served as Lead Director since March 2018 and as a member of the Board since February 2002.  He also served as Lead Director from March 2006 to June 2010 and as Chairman of the Board from June 2010 until March 2018. Mr. Steffensen served as the Chairman and Chief Executive Officer of Merisel, Inc. from February 1996 until August 2000. Prior to joining Merisel, Mr. Steffensen served as President and Chief Operating Officer at Bergen Brunswig Corporation, a healthcare company. Prior to the merger of Bergen Brunswig Corporation and Synergex Corporation, he served as President and Chief Executive Officer of Synergex. Mr. Steffensen was a member of the Board of Directors of OmniVision Technologies, Inc., where he chaired the Audit Committee and also served on the Compensation Committee and the Corporate Governance and Nominating Committee, until January 28, 2016 when a private investment consortium completed the acquisition of OmniVision Technologies. Mr. Steffensen received a Bachelor of Arts degree in Economics from Stanford University and is a

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Certified Public Accountant (inactive). As a former executive officer and member of the Board of Directors of Merisel, Inc., one of our former competitors, and as an Audit Committee financial expert, we believe that Mr. Steffensen contributes his leadership skills, industry knowledge, finance background, and business experience to the Board. In addition, we believe that Mr. Steffensen’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.  

Dennis Polk, 54, has served as our President and Chief Executive Officer since March 2018 and as a member of the Board since February 2012. Mr. Polk joined SYNNEX in 2002 as Senior Vice President of Corporate Finance and in the same year became Chief Financial Officer. In 2006, he was promoted to Chief Operating Officer and served in that capacity until he became our President and Chief Executive Officer. Mr. Polk serves on the Board of Directors of Concentrix Corporation and Terreno Realty Corporation. At Concentrix, Mr. Polk will serve on the Board for up to two years for transition purposes related to the Spin-off from SYNNEX. At Terreno, Mr. Polk serves as Chair of the Compensation Committee.  As a current executive officer of SYNNEX and prior distribution and contract manufacturer executive, we believe that Mr. Polk contributes his leadership skills, distribution and operations knowledge, finance background, and business experience to the Board. We also believe it is important that our Chief Executive Officer serves on our Board. In addition, we believe that Mr. Polk’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.

Fred Breidenbach, 74, has served as a member of the Board since February 2003. Mr. Breidenbach has had his own consulting firm of FA Breidenbach & Associates, LLC since November 1997. Prior to that, he served as the President and Chief Operating Officer of Gulfstream Aerospace Corporation (Gulfstream), an aviation company, from 1993 to 1997. Prior to joining Gulfstream, Mr. Breidenbach spent 25 years in various positions at General Electric Company, including five years as an officer of the General Electric Company and two years as President, GE Aerospace Asia Pacific, responsible for business development and Asian operations. Mr. Breidenbach received a Bachelor of Science degree in Industrial Engineering from Pennsylvania State University and a Master of Business Administration from Xavier University. As a former executive officer of Gulfstream and General Electric Company, we believe that Mr. Breidenbach contributes his leadership skills, corporate discipline, Asia Pacific knowledge, technology background, and business experience to the Board. In addition, we believe that Mr. Breidenbach’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.

Laurie Simon Hodrick, 58, has served as a member of the Board since April 2019.  Ms. Hodrick is a Visiting Professor of Law and Rock Center for Corporate Governance Fellow at Stanford Law School, a Visiting Fellow at the Hoover Institution at Stanford University, and the A. Barton Hepburn Professor Emerita of Economics in the Faculty of Business at Columbia Business School. Ms. Hodrick served as the Founding Director of the Program for Financial Studies at Columbia Business School from 2010 to 2015 and was a Managing Director at Deutsche Bank from 2006 to 2008. Ms. Hodrick currently serves on the Boards of Directors of Roku, Inc., the pioneer of streaming to the TV, and PGIM Funds, the $130 billion retail investments business of PGIM, the global investment management business of US-based Prudential Financial, Inc. From June 2018 to October 2020, she served on the Board of Directors of Kabbage, a private global financial services, technology and data platform serving small businesses, that on October 16, 2020 was acquired by American Express. Ms. Hodrick previously served as an Independent Director on the Boards of Corporate Capital Trust and Merrill Lynch Investment Managers, designated as an Audit Committee financial expert. Ms. Hodrick received a Bachelor of Arts in Economics, summa cum laude, from Duke University and a PhD in Economics from Stanford University. We believe that Ms. Hodrick’s more than 30 years of experience in capital markets and finance contribute to the Board. In addition, we believe that Ms. Hodrick’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.

Hau Lee, 68, has served as a member of the Board since February 2012. Mr. Lee has been the Thoma Professor of Operations, Information and Technology at the Graduate School of Business at Stanford University since 2002, where he has been a professor since 1983. He is the Co-Director of the Stanford Value Chain Innovation

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Initiative. Mr. Lee was elected to the National Academy of Engineering of the U.S.; Fellow of Manufacturing and Service Operations Management; Production and Operations Management Society; and INFORMS. He is a co-founder of DemandTec, Inc. Mr. Lee received his Bachelor of Social Science degree in Economics and Statistics from the University of Hong Kong, his Master of Science degree in Operational Research from the London School of Economics, and his Master of Science and Doctor of Philosophy degrees in Operations Research from the Wharton School of the University of Pennsylvania. As a professor in supply chain management, we believe that Mr. Lee contributes his leadership skills, supply chain and technology background, and business experience to the Board. In addition, we believe that his membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.

Matthew Miau, 74, has served as a director since 1992 and served as the chairman of our Board from 1992 to 2008. Mr. Miau assumed the position of Chairman Emeritus of the Board in December 2008. He is on the Board of Directors of MiTAC Holdings Corporation, Synnex Technology International Corp., UPC Technology Corp., Lien Hwa Industrial Corp. and Getac Technology Corporation. These directorships are all MiTAC group related. He also serves on the board of Cathay Financial Holdings. Regarding board committees, he serves as a member of the audit and compensation committees of Cathay Financial Holdings, which does not trade in the US. With the exception of SYNNEX, the aforementioned companies for which Mr. Miau serves as a director are all located in Taiwan, and only MiTAC Holdings Corporation and Synnex Technology International have an annual financial scope within the range of SYNNEX. SYNNEX is the only company for which Mr. Miau serves as a director that is US-publicly traded or that is subject to the periodic reporting requirements of the SEC. Our Board has reviewed Mr. Miau’s past Board service and his unique position as a long-term and significant stockholder and has considered the level of time commitment required by Mr. Miau’s other public company boards. The Board believes that Mr. Miau is able to make an important and full contribution to the Board notwithstanding other board commitments.

Mr. Miau received a Bachelor of Science degree in Electrical Engineering/Computer Science from the University of California, Berkeley and a Master of Business Administration degree from Santa Clara University. As the Chairman of the Board of MiTAC Holdings Corporation, we believe that Mr. Miau contributes his leadership skills, distribution, contract manufacturing and Asia Pacific knowledge, finance and technology background, and business experience to the Board. In addition, we believe that Mr. Miau’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.  Finally, MiTAC affiliates have held approximately 20% or more of our common stock since our IPO in 2003, and, for this reason, we believe that Mr. Miau brings a unique ownership and shareholder representative perspective to the Board.

 

Ann Vezina, 58, has served as a member of the Board since February 2017. From July 2013 to August 2015, Ms. Vezina served as Corporate Vice President, Human Resources for Xerox Business Services, LLC, where she implemented and directed key human resources programs. From February 2010 to July 2013, she was Corporate Vice President and Chief Operations Officer for Xerox Business Services, where she led the operation and growth of Enterprise BPO. Previously, she served as Executive Vice President and Group President, Commercial Solutions for Affiliated Computer Services, Inc. (ACS) before the acquisition of ACS by Xerox Corporation in 2010; in that role, Ms. Vezina drove global sales, operations and growth of ACS information technology (IT) and BPO services. She began her career with Electronic Data Systems, taking on roles of increasing responsibility during her 18 years there. She serves on the Board of Directors of Concentrix Corporation, where she is the Chair of the Nominating and Governance Committee and a member of the Compensation Committee. Ms. Vezina graduated with a Bachelor of Science in Business Administration from Central Michigan University. As an executive with over 30 years of experience in the global BPO industry, and most recently in a human resources role, we believe that Ms. Vezina contributes her leadership skills, large-scale personnel management background, and business experience to the Board. In addition, we believe that Ms. Vezina’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.

Thomas Wurster, 68, has served as a member of the Board since February 2012. Mr. Wurster is a former Senior Partner and Managing Director with The Boston Consulting Group (BCG), a leading global management consulting firm, where he most recently led the West Coast. In the past, he has served as a member of BCG’s Senior Officer Selection Committee, Officer Development Committee, and Americas Management Team. In addition, he

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has led both the Los Angeles and San Francisco offices of BCG. Mr. Wurster joined BCG in 1978 and was elected Vice President and Director in 1985. Mr. Wurster is currently an Adjunct Professor of Strategy at the UCLA Anderson School of Management and a Lecturer in Management at the Stanford Graduate School of Business. He has also taught at the Yale School of Management as an Adjunct Professor of Strategy and Organization. He has more than thirty-five years of experience consulting to leading companies with a specialization in technology and media. Mr. Wurster is co-author of the book Blown to Bits (The Harvard Business School Press, 2000) on how digital technologies change business strategy. Mr. Wurster received a Bachelor of Arts degree in Economics and Mathematics from Cornell University with distinction and was elected to Phi Beta Kappa. He received his Master of Business Administration degree with honors from the University of Chicago and received his Doctor of Philosophy degree in economics from Yale University. We believe that Mr. Wurster contributes his leadership skills and corporate and business unit strategy development, organization design, merger integration planning and implementation, marketing and sales, operations, and IT distribution background and experience to the Board. In addition, we believe that Mr. Wurster’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.

Duane Zitzner, 73, has served as a member of the Board since May 2007. Mr. Zitzner served as Interim Chief Executive Officer of National ICT Australia Limited (NICTA) from December 2014 to June 2015. He also has had his own consulting firm since January 2005. Prior to that, he served as the Executive Vice President of the Personal Systems Group at Hewlett-Packard Company from 2002 until his retirement in December 2004. Prior to his appointment as Executive Vice President at Hewlett-Packard Company, Mr. Zitzner spent several years in various executive positions at Hewlett-Packard Company, including three years as President of Computing Systems and three years as Vice President and General Manager of the Personal Systems Group. Mr. Zitzner received a Bachelor of Science degree in Mathematics from the University of Wisconsin—Madison and did advanced studies in Computer Science at the University of Minnesota—Twin Cities. As a former executive officer of Hewlett-Packard Company, we believe that Mr. Zitzner contributes his leadership skills, industry knowledge, technology background, and business experience to the Board. In addition, we believe that Mr. Zitzner’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.

Andrea Zulberti, 69, has served as a member of the Board since September 2010. Ms. Zulberti is retired from Barclays Global Investors (now BlackRock, Inc.), one of the world’s largest investment management and advisory companies, after a 14-year career in various executive positions, including Managing Director, Chief Financial Officer, Head of Global Risk Management and Head of Global Operations. Prior to Barclays Global Investors, Ms. Zulberti’s earlier business roles included co-founding a real estate syndication firm and financial management experience in various industries, including transportation and marketing consultancy. Ms. Zulberti graduated with honors with a Bachelor of Science degree in Business Administration from California State University at Hayward (now California State University East Bay). Ms. Zulberti is a certified public accountant (inactive) and a member of the California Society of Certified Public Accountants. As a former executive officer of Barclays Global Investors, an Audit Committee financial expert, and a former member of the Board of Trustees, Audit Committee and Finance and Investment Committee of ProLogis, we believe that Ms. Zulberti contributes her leadership skills, finance, background, and business experience to the Board. In addition, we believe that Ms. Zulberti’s membership on the Board helps to achieve the objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity.

There are no family relationships among any of our directors or executive officers.

Required Vote

The eleven nominees for director receiving the highest number of affirmative votes will be elected as directors. However, the Board has adopted a majority vote policy for director elections whereby if a director receives less than a majority of the votes cast for such director, the Board will review the outcome and make a determination as to the proper remedy. In its review, the Board will consider the totality of the circumstances surrounding the vote to evaluate the situation, and is authorized to remedy the situation as it deems appropriate, including requesting that the affected director resign from the Board. A “withhold” vote as to any director nominee

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will have no effect on the vote’s outcome because the candidates who receive the highest number of affirmative votes are elected; however, “withhold” votes may prevent a director from obtaining a majority of votes, which would trigger the aforementioned additional Board scrutiny. Unless marked to the contrary, proxies received will be voted “FOR” the nominees.

The Board recommends a vote “FOR” the election of the nominees set forth above as directors of SYNNEX.

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CORPORATE GOVERNANCE

Organization of the Board of Directors

The Board held 11 meetings during the fiscal year ended November 30, 2020. Each director serving during our 2020 fiscal year attended at least 75% of the total regularly scheduled and special meetings held by the Board and the committees on which such director served during the director’s tenure in the last completed fiscal year.  We do not have a policy regarding directors’ attendance at the Annual Meeting.  However, all members of the Board serving at the time attended the 2020 Annual Meeting.

Our non-management directors meet in regularly scheduled executive sessions without the presence of management. The Chairman of the Board presides over each such executive session. Historically, our Chief Executive Officer has not served as our Chairman of the Board and we continue to separate the two positions. Separating the two positions ensures that our Chief Executive Officer is accountable for managing our company in close alignment with the interests of stockholders, eliminates the inherent conflict of interest that arises when the roles are combined, promotes oversight of risk and can serve as a conduit for regular communication with stockholders.

The Board has established four standing committees: the Audit Committee, the Compensation Committee, the Nominating and Corporate Governance Committee and the Executive Committee. In addition, from time to time, the Board establishes non-standing committees to address matters that may arise during periods between regularly scheduled meetings and/or specific issues not fully applicable to one of the standing committees.  The Board has determined that all members of the Audit, Compensation, and Nominating and Corporate Governance Committees meet the independence standards of the NYSE and rules and regulations of the Securities and Exchange Commission (SEC). With respect to the Executive Committee, at least one-half of the members of the Executive Committee meet the independence standards of the NYSE and rules and regulations of the SEC. In addition, each member of the Audit Committee is financially literate as defined by the Board and each member of the Audit and Compensation Committees meets the heightened independence standards of the NYSE and rules and regulations of the SEC applicable to members of these committees. The Board has approved a charter for each of these standing committees, which can be found on our website at www.synnex.com. Our corporate governance guidelines and Code of Ethical Business Conduct, which are applicable to our principal executive, financial and accounting officers, directors and associates, are also available on or through our website at www.synnex.com and are available in print to any stockholder upon request. We intend to post any amendments to the corporate governance guidelines or Code of Ethical Business Conduct on our website.

The following lists the four standing committees and their current members.Current Compensation Committee Chair and Nominating and Corporate Governance Committee member Gregory Quesnel will retire from the Board of Directors on March 1, 2021 and is not standing for re-election.

Audit Committee

Number of Members:

4

Members:

Andrea Zulberti, Chair and Audit Committee Financial Expert

 

Laurie Simon Hodrick, Audit Committee Financial Expert

Dwight Steffensen, Audit Committee Financial Expert

Ann Vezina

 

 

Number of Meetings in fiscal year ended November 30, 2020:

 

12

Functions:

The Audit Committee provides assistance to the Board in fulfilling its legal and fiduciary obligations in matters involving our accounting, auditing, financial reporting, internal control and legal compliance functions by approving the services performed by our independent registered public accountants and reviewing their

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reports regarding our accounting practices and systems of internal accounting controls. The Audit Committee also oversees the audit efforts of our independent registered public accountants and takes those actions as it deems necessary to satisfy itself that the accountants are independent of management.

The Audit Committee is responsible for reviewing the framework by which management discusses our risk profile and risk exposures with the full board and its committees. The Audit Committee meets regularly with our President and Chief Executive Officer, Chief Financial Officer, Corporate Vice President of Internal Audit, independent auditor, General Counsel, Corporate Controller, and other members of senior management to discuss our major financial risk exposures, financial reporting, internal controls, credit and liquidity risk, compliance risk, key operational risks, and risk management framework and programs. Other responsibilities include at least annually reviewing the implementation and effectiveness of our compliance and ethics program and reviewing as necessary our business continuity plan and results. The Audit Committee meets regularly in separate executive session with the Vice President of Internal Audit, Chief Financial Officer, and independent auditor, as well as with committee members only, to facilitate a full and candid discussion of risk and other issues.

Compensation Committee

Number of Members:

5

Members:

Gregory Quesnel, Chair

Fred Breidenbach

Hau Lee

 

Thomas Wurster

Duane Zitzner

 

 

Number of Meetings in fiscal year ended November 30, 2020:

8

Functions:

The Compensation Committee reviews and determines our general compensation policies and the compensation provided to our officers, including targets for annual and long-term bonus plans. The Compensation Committee also reviews, determines and approves bonuses for our officers and other associates. In addition, the Compensation Committee reviews, administers and approves equity-based compensation for our officers and associates and administers our stock option plans and employee stock purchase plan.

The Compensation Committee is responsible for overseeing human capital and compensation risks, including evaluating and assessing risks arising from our compensation policies and practices for all associates and ensuring executive compensation is aligned with performance. To assist it in satisfying these oversight responsibilities, the Compensation Committee has retained its own compensation consultant and meets regularly with management to understand the financial, human resources and stockholder implications of compensation decisions being made. The Compensation Committee also is charged with monitoring our incentive and equity-based compensation plans.

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Nominating and Corporate Governance Committee

Number of Members:

5

Members:

Duane Zitzner, Chair

Fred Breidenbach

Hau Lee

Gregory Quesnel

Thomas Wurster

 

 

Number of Meetings in fiscal year ended November 30, 2020:

 

6

Functions:

The Nominating and Corporate Governance Committee is responsible for making recommendations to the Board regarding candidates for directorships and the size, director qualifications, and composition of the Board, director compensation, including equity compensation, and for overseeing our corporate governance guidelines and reporting and making recommendations to the Board concerning corporate governance matters. In addition, the Nominating and Corporate Governance Committee is responsible for considering nominations by stockholders.

The Nominating and Corporate Governance Committee oversees risks related to our overall corporate governance, including board and committee composition, board size and structure, director independence, and our corporate governance profile and ratings. The Nominating and Corporate Governance Committee also is actively engaged in overseeing risks associated with succession planning for the board and management.

Executive Committee

 

Number of Members:

5

Members:

Dennis Polk, Chair

 

Kevin Murai

Gregory Quesnel

Dwight Steffensen

Duane Zitzner

 

Andrea Zulberti

 

 

Number of Meetings in fiscal year ended November 30, 2020:

 

0

Functions:

The Executive Committee is responsible for performing the functions of the Board when there is a critical need for prompt review and action of the Board and it is impractical to arrange a meeting of the Board within the time reasonably available; and representing the full Board between regularly scheduled meetings and other matters that the Board may delegate to the Executive Committee from time to time.

 

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The Board of Directors’ Role in Risk Oversight

The Board recognizes the importance of effective risk oversight in running a successful business and in fulfilling its fiduciary responsibilities to SYNNEX and our stockholders.  While the Chief Executive Officer and other members of our senior management team are responsible for the day-to-day management of risk, the Board is responsible for ensuring that an appropriate culture of risk management exists within our company and for setting the right “tone at the top,” overseeing our aggregate risk profile, and assisting management in addressing specific risks, such as strategic and competitive risks, financial risks, brand and reputation risks, legal risks, regulatory risks, and operational risks.

Due to Mr. Murai's serving as our President and Chief Executive Officer immediately prior to his becoming our Chairman of the Board in March 2018 and therefore not being deemed independent, the Board established the independent Lead Director role, to which it appointed Mr. Steffensen effective on that date. The Lead Director presides at all meetings of the Board in the event the Chairman is not in attendance, works together with the Chairman to communicate with the independent directors between meetings, as necessary, and takes the lead in communicating any feedback to the Chairman of the Board. The Board believes that this leadership structure best facilitates its oversight of risk by combining independent leadership, through an independent Lead Director, independent Board committees, and majority independent Board composition, with an experienced Chief Executive Officer and an experienced Chairman of the Board who have intimate knowledge of our business, history, and the complex challenges that arise. The Chief Executive Officer’s in-depth understanding of these matters and involvement in the day-to-day management of our company uniquely positions him to promptly identify and raise key business risks to the Board, call special meetings of the Board when necessary to address critical issues, and focus the Board’s attention on areas of concern.  The Chairman of the Board, Lead Director, independent committee chairs and other directors also are experienced professionals or executives who can and do raise issues for Board consideration and review, and are not hesitant to challenge management.  The Board believes in a well-functioning and effective balance between the Chairman of the Board, Lead Director and other non-executive Board members and the Chief Executive Officer, which enhances risk oversight.

In addition, the Board believes that the Chairman of the Board should not serve on the Audit Committee, Compensation Committee or the Nominating and Corporate Governance Committee.  As such, our current Chairman of the Board, Mr. Murai, does not serve on any of the independent committees.

The Board exercises its oversight responsibility for risk both directly and through three of its standing committees.  Throughout the year, the Board and each committee spend a portion of their time reviewing and discussing specific risk topics. The full Board is kept informed of each committee’s risk oversight and related activities through regular oral reports from the committee chairs, and committee meeting minutes are available for review by all directors.  Strategic, operational, financial and competitive risks also are presented and discussed at the Board’s quarterly meetings, and more often as needed.  On at least an annual basis, the Board conducts a review of our long-term strategic plans and members of senior management report on our top risks and the steps management has taken or will take to mitigate these risks. In addition, at each quarterly meeting, or more often as necessary, the General Counsel updates the Board on material legal and regulatory matters.  The General Counsel annually updates the Audit Committee regarding our annual ethical business conduct training for managers and annual Code of Ethical Business Conduct employee acknowledgments. On a regular basis between Board meetings, our Chief Executive Officer and/or other executive officers provide reports to the Board on the critical issues we face and recent developments in our principal operating areas. These reports may include a discussion of business risks as well as a discussion regarding enterprise risk.


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Environmental and Social Governance

We also manage risk within our enterprise through various environmental and social governance programs.

Our Environment. We take steps to integrate environmental considerations into our business activities and provide our associates with the awareness, skills, and knowledge necessary to encourage respect for our environment. Our facilities teams are constantly searching for new ways to reduce carbon emissions, cut down on energy usage, and improve energy efficiency. Some highlights of our efforts include:

 

 

 

 

ISO 14001: 2015 Certifications in Environmental Management System which includes Waste Management, Water Consumption (Fremont, CA, United States), and Energy Conservation

Our Conflict Minerals policy, posted on our website, which addresses our supply chain expectations for the components in the products that we manufacture or integrate

Access for our Technology Solutions North America resellers to a wide variety of green-designated products and services

Installed solar panels and installed electric car stations at certain US office locations and a commuter benefit program at our headquarters location

Datacenter and facility temperature standardization across various facilities to conserve energy

An electronic waste disposal program (Greenville, SC, United States)

SYNNEX GoGreen program to raise employee awareness on environmental issues to help contribute to a better, healthier planet

Water dispensers onsite where associates can refill their water bottles, water coolers in break rooms, and reusable water bottles available to interested staff in certain locations

Installed LED energy saving lamps with intelligent switches at the majority of our US facilities and at our Beijing and Chengdu, China offices

 


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Our Associates. We believe that our business benefits when our associates enjoy coming to work and thrive in their work environment. We strive to provide benefits and services that help meet the varying needs of our associates. Some highlights from our educational, wellness and giving back programs include:

Our Code of Ethical Business Conduct which outlines behavioral expectations, policies, applicable laws and guidelines for how associates should represent themselves in our workplace and how they should interact with others

Annual ethical business conduct training, including anti-bribery and anti-corruption training

Online, cloud-based training and on-site courses designed to foster the personal and professional growth of our associates

Diversity, equity, and inclusion (DEI) initiatives that provide education and awareness opportunities, including a company-sponsored DEI Committee

Multiple DEI listening sessions throughout the year including our President and Chief Executive Officer Dennis Polk and small groups of associates

Women-focused community SYNNEX F2F (uniting women from all walks within the IT industry) providing members with networking, relevant learning opportunities, and mentorships

Annual Huang Leadership Development Scholarship available to SYNNEX associates, their legal dependents, and grandchildren, to help foster leaders of tomorrow

Annual health fairs, in-office flu shot programs, wellness-focused lunch & learns, and healthy options in our vending machines

Annual surveys of associates to monitor employee satisfaction and engagement and inform decision-making

Workforce-focused initiatives we took in response to the COVID-19 pandemic include:

Implementing a COVID-19 Task Force focused on assisting associate needs during the pandemic    

Establishing a COVID-19 Relief Fund to assist associates adversely affected by the COVID-19 pandemic; relief funds raised from voluntary contributions from associates with donations matched by the company dollar-for-dollar up to a total of $50,000

Waiving associate cost-sharing for COVID-19 testing and treatment for certain health plan members across the US  

Providing a COVID-19 allowance to all frontline associates and contingent workers and bonus to all frontline associates and contingent workers in our fiscal 2020 fourth quarter

Offering large-scale technical support and various resources to enable associate work-from-home when possible

 

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Our Communities. We support a range of philanthropic initiatives that reflect our values and allow us to demonstrate how we care for our people and our communities. We support our associates in giving back to the communities in which they live and work—whether through monetary donations, volunteer efforts, or fundraising. Some examples include:

 

 

 

SYNNEX Community Involvement Committee support to provide the foundation for associates to engage in local community-focused charity initiatives

 

SYNNEX Share the Magic support and spearheading to benefit local children’s charities in the US and in Canada, raising more than $14 million to date

 

STEM-focused sponsorships and community initiatives, such as sponsorship of multiple FIRST Robotics teams in the US and in Canada

 

Foodbank donations to local Telford Foodbank (Hyve UK)

Computer equipment donations to children in impoverished mountainous areas (China)

Clothing donations to help support children affected by the Great East Japan Earthquake (Japan)

Corporate Social Responsibility Policy posted on our website

DEI survey of our largest operations suppliers

 

Director Orientation and Continuing Education

We provide directors with an orientation and education program to familiarize them with our business operations and plans, industry trends and corporate governance practices, as well as ongoing education on issues facing us and on subjects that would assist the directors in discharging their duties. The program includes, among other things, biannual visits to different company locations to foster more director interaction with associates and familiarity with various company sites and businesses.  Directors also are encouraged to attend courses provided by outside organizations covering various governance matters, best practices, and issues of concern to directors of publicly-traded companies.  It is our policy that directors are to share with the Board or fellow committee members what they have learned.

Director Nominations

The Board nominates directors for election at each Annual Meeting and elects new directors to fill vacancies when they arise. The Nominating and Corporate Governance Committee has the responsibility to identify, evaluate, recruit and recommend qualified candidates to the Board for nomination or election.

The Nominating and Corporate Governance Committee has a policy and process regarding consideration of director candidates recommended by stockholders. The Nominating and Corporate Governance Committee reviews suggestions for director candidates recommended by stockholders and considers such candidates for recommendation based upon an appropriate balance of knowledge, experience and capability. The assessment of candidates include the candidates’ relevant industry experience, general business experience, relevant financial experience, interpersonal and communication skills, as well as the candidates’ roles and contributions that are valuable to the business community, personal qualities of leadership, character, judgment and whether the candidate

15

 


 

possesses and maintains throughout service on the Board a reputation in the community at large of integrity, trust, respect, competence and adherence to the highest ethical standards. In addition to considering an appropriate balance of knowledge, experience and capability, the Board has as an objective that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives, skills and other individual qualities that contribute to Board heterogeneity. The Nominating and Corporate Governance Committee selects candidates for director based on their character, judgment, diversity of experience and backgrounds, relevance of experience, business acumen, interpersonal and communication skills, and ability to act on behalf of all stockholders. The Nominating and Corporate Governance Committee believes that nominees for director should have experience, such as experience in management or accounting and finance, or industry and technology knowledge, that may be useful to SYNNEX and the Board, high personal and professional ethics, and the willingness and ability to devote sufficient time to effectively carry out his or her duties as a director. The Nominating and Corporate Governance Committee believes it appropriate for at least one, and, preferably, multiple, members of the Board to meet the criteria for an “audit committee financial expert” as defined by SEC rules, and for a majority of the members of the Board of Directors to meet the definition of “independent director” under the rules of the NYSE. The Nominating and Corporate Governance Committee also believes it appropriate for certain key members of our management to participate as members of the Board.

The Nominating and Governance Committee is aware that some corporate governance groups have set a maximum on the number of public company boards on which a public company director should sit regardless of the individual circumstances of the director or nature of the companies involved. The Nominating and Governance Committee recognizes the concern of overboarding, where a director sits on an excessive number of boards, and, without setting an ad hoc limit on the number of public company boards for directors, has considered the following factors, among others, in looking at the time availability of each prospective director nominee on an individual basis:  size and location of the other companies, the director’s board duties at those companies and extent of board committee service; the extent of service on large private company boards, board tenure, and board attendance. Based on these factors, the Nominating and Governance Committee determined no director nominee should be removed from consideration due to the number of public company boards on which the director nominee serves.

Prior to each Annual Meeting, the Nominating and Corporate Governance Committee identifies nominees first by reviewing the current directors whose terms expire at such Annual Meeting of Stockholders and who are willing to continue in service. These candidates are evaluated based on the criteria described above, including each candidate’s demonstrated prior service as a director, and the needs of the Board with respect to the particular talents and experience of its directors. In the event that a director does not wish to continue in service, the Nominating and Corporate Governance Committee determines not to nominate the director, or a vacancy is created on the Board as a result of a resignation, an increase in the size of the Board or other event, the Nominating and Corporate Governance Committee will consider various candidates for Board membership, including those suggested by the Nominating and Corporate Governance Committee members, by other Board members, by any executive search firm engaged by the Nominating and Corporate Governance Committee and by stockholders. A stockholder who wishes to suggest a prospective nominee for the Board should notify our Corporate Secretary, any member of the Nominating and Corporate Governance Committee, or the persons referenced below in “Communications with the Board of Directors” in writing with any supporting material the stockholder considers appropriate.

In addition, our Bylaws contain provisions that address the process by which a stockholder may nominate an individual to stand for election to the Board at an Annual Meeting. In order to nominate a candidate for director, a stockholder must give timely notice in writing to our Corporate Secretary and otherwise comply with the provisions of our Bylaws. To be timely, our Bylaws provide that we must have received the stockholder’s notice not less than 120 days prior to the scheduled date of such meeting. However, if notice or prior public disclosure of the date of the Annual Meeting is given or made to stockholders less than 100 days prior to the meeting date, we must receive the stockholder’s notice by the close of business on the 7th day after the earlier of the day we mailed notice of the Annual Meeting date or provided such public disclosure of the meeting date. Information required by our Bylaws to be in the notice include the name and contact information for the candidate and the person making the nomination and other information about the nominee that must be disclosed in proxy solicitations under Section 14 of the Securities Exchange Act of 1934 and the related rules and regulations under that Section.

Stockholder nominations must be made in accordance with the procedures outlined in, and include the information required by, our Bylaws and must be addressed to: Corporate Secretary, SYNNEX Corporation, 44201

16

 


 

Nobel Drive, Fremont, California 94538. You can obtain a copy of our Bylaws by writing to the Corporate Secretary at this address.

Communications with the Board of Directors

The Board has a process for stockholders and other interested persons to send communications to directors. If you wish to communicate with the Board as a whole or to non-management directors, you may send your communication in writing to: Andrea Zulberti, Chair or Allison Leopold Tilley, Pillsbury Winthrop Shaw Pittman LLP, 2550 Hanover Street, Palo Alto, California 94304. You must include your name and address in the written communication and indicate whether you are a stockholder of SYNNEX or other interested person.  Ms. Zulberti or Ms. Leopold Tilley will review any communication received from a stockholder or other interested person, and all material communications from stockholders or other interested persons will be forwarded to the appropriate director or directors or Board committee based on the subject matter.

 

2020 Directors’ Compensation Table

The following tables set forth the compensation amounts paid to each non-executive director for their service in fiscal year ended November 30, 2020.

Name

Fees Earned

or Paid in

Cash ($)


Stock

Awards

($)(1)(2)

Option

Awards

($)(1)(2)

 

All Other

Compensation

($)(3)

Total ($)

Fred Breidenbach

85,000

149,972

146

235,118

Laurie Simon Hodrick

85,000

149,972

131

235,103

Hau Lee

85,000

149,972

146

235,118

Matthew Miau

85,000

149,972

146

235,118

Kevin Murai

185,000

149,972

3,063

338,035

Gregory Quesnel

105,000

149,972

146

255,118

Dwight Steffensen

165,000

149,972

146

315,118

Ann Vezina

85,000

149,972

146

235,118

Thomas Wurster(4)

83,592

149,972

146

233,710

Duane Zitzner(4)

98,908

149,972

146

249,026

Andrea Zulberti

111,000

149,972

146

261,118

__________

 

(1)

Amounts listed in these columns represent the grant date fair value of stock awards and option awards recognized by us under FASB ASC Topic 718 for the fiscal year ended November 30, 2020 rather than the amounts realized by the named individuals. See Note 4 “Share-Based Compensation” for valuation assumptions used to calculate the fair value included in our Annual Report on Form 10-K for fiscal year ended November 30, 2020.

 

(2)

The table below sets forth the aggregate number of stock awards that have not vested and option awards that are outstanding held by our non-executive directors as of November 30, 2020.

Name

Stock Awards

Option Awards

Fred Breidenbach

523

Laurie Simon Hodrick

523

Hau Lee

523

6,000

Matthew Miau

523

Kevin Murai

4,191

189,602

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Name

Stock Awards

Option Awards

Gregory Quesnel

523

Dwight Steffensen

523

Ann Vezina

523

Thomas Wurster

523

Duane Zitzner

523

Andrea Zulberti

523

 

(3)

The amounts in this column represent the dollar value of dividends paid during the fiscal year ended November 30, 2020 (as part of a dividend paid to all of our stockholders) on unvested restricted stock awards; such dividends were not factored into the grant date fair value of stock awards required to be reported in the stock awards column of the table. Dividends paid on unvested restricted stock awards granted to Mr. Murai during his service as our President and Chief Executive Officer are included in this table.

 

(4)

Effective January 20, 2020, Duane Zitzner became chair of the Nominating and Governance Committee and Thomas Wurster resigned from the chair position.

Narrative to Directors’ Compensation Table

The compensation and benefit program for the Chairman of the Board of Directors and non-executive directors is designed to achieve the following goals: (1) compensation should fairly pay directors for work required of directors serving an entity of our size and scope; (2) compensation should align directors’ interests with the long-term interests of stockholders; and (3) the structure of the compensation should be transparent and easy for stockholders to understand. We review director compensation every year.

For the fiscal year ended November 30, 2020, the Chairman of the Board of Directors and each non-executive director received an annual retainer of $85,000 payable quarterly and an annual restricted stock grant under the 2020 Stock Incentive Plan valued at approximately $150,000. Effective upon the 2021 Annual Meeting, the value of the annual restricted stock grant will be increased to approximately $165,000. The annual grant is prorated based upon the expected service period between the director’s service commencement date and the immediately following Annual Meeting. The valuation of the stock price in determining the number of shares of restricted stock is based upon the closing price on the first trading day following the director’s appointment or election and vests quarterly based upon our fiscal quarter.

Additionally, for the fiscal year ended November 30, 2020, the chairs of each of the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee, as well as the Chairman of the Board, received cash retainers payable quarterly in advance.  These retainer amounts are reviewed and revised from time to time to reflect compensation practices among our peers based on information provided by our compensation consultant Compensia. The chair of the Audit Committee receives a retainer of $26,000; effective upon the 2021 Annual Meeting, the chair of the Audit Committee's retainer will be increased to $35,000. The chair of the Compensation Committee receives a retainer of $20,000 and the chair of the Nominating and Corporate Governance Committee receives a retainer of $12,500. The Chairman of the Board of Directors receives an additional cash retainer of $100,000. The Lead Director receives an additional cash retainer of $80,000.  Also, all directors are reimbursed for their reasonable out-of-pocket expenses in serving on the Board or any committee of the Board.

We request each current member of the Board who was elected at the 2020 Annual Meeting to hold an equity position in SYNNEX of the equivalent value of at least five times the annual base retainer (excluding committee chair retainers) in common stock, whether vested or unvested, or vested in-the-money stock options on the date of each Annual Meeting, commencing on the 2023 Annual Meeting. For any director initially elected after the 2020 Annual Meeting we request that the director hold the same equity position in SYNNEX, but commencing on the fifth anniversary of the director’s initial election at an Annual Meeting. This equity holding expectation represents an increase in value of more than sixty percent, as the prior year’s expectation had been three times the

18

 


 

annual base retainer. Due to this recent significant increase in holding requirements, we have given existing directors until the 2023 Annual Meeting to increase their equity position to come into compliance.

In the fiscal year ended November 30, 2020, Matthew Miau and Kevin Murai received the same standard retainer and equity compensation as the other outside directors, as approved by the Nominating and Corporate Governance Committee. Any future compensation payable to Messrs. Miau and Murai will be based upon the approval of the Nominating and Corporate Governance Committee, which is composed of disinterested members of the Board of Directors.

Compensation Committee Interlocks and Insider Participation

Fred Breidenbach, Hau Lee, Gregory Quesnel, Thomas Wurster, and Duane Zitzner served as members of the Compensation Committee during the fiscal year ended November 30, 2020. None of the members who served on the Compensation Committee during the fiscal year ended November 30, 2020 has served as an officer or been an employee of SYNNEX and we do not have any related person transactions with any of the members of the Compensation Committee. In addition, the Board has determined that Messrs. Breidenbach, Lee, Quesnel, Wurster and Zitzner have no material relationship with us, that each of these directors is an independent director and that each of these directors meets the heightened independence standards applicable to members of the Compensation Committee.  None of our executive officers currently serves, or in the past year has served, on the board of directors or compensation committee of any entity that has one or more executive officers serving, or proposed to serve, as a member of our Board of Directors or Compensation Committee.

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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

 

Overview

We have a business relationship with MiTAC International Corporation (MiTAC International), a publicly-traded company in Taiwan that began in 1992 when it became our primary investor through its affiliates. In September 2013, MiTAC Holdings Corporation (MiTAC Holdings) was established through a stock swap from MiTAC International and became a publicly traded company on the Taiwan Stock Exchange. MiTAC International is now a wholly owned subsidiary of MiTAC Holdings. As of January 22, 2021, and as detailed in the table below, MiTAC Holdings and its affiliates (companies listed in the table below) beneficially owned approximately 17.74% of our common stock. Matthew Miau, our Chairman Emeritus of the Board of Directors and a director, is the Chairman of MiTAC Holdings and a director or officer of MiTAC Holdings’ affiliates. As a result, MiTAC Holdings generally has significant influence over us and over the outcome of all matters submitted to stockholders for consideration, including any of our mergers or acquisitions. Among other things, this could have the effect of delaying, deterring or preventing a change of control over us.

Until July 31, 2010, we worked with MiTAC Holdings on OEM outsourcing and jointly marketed MiTAC Holdings’ design and electronic manufacturing services and our contract assembly capabilities. On July 31, 2010, MiTAC Holdings purchased certain assets related to the contract assembly business including inventory and customer contracts, primarily related to customers then being jointly serviced by MiTAC Holdings and us. We made payments of $0.1 million and $41 thousand to MiTAC Holdings and its affiliates for reimbursement of rent and overhead costs for facilities used by us during fiscal years ended November 30, 2020 and 2019, respectively. We received reimbursements of rent and overhead costs for facilities used by MiTAC Holdings and its affiliates amounting to $71 thousand during fiscal year ended November 30, 2018.

 

We purchased inventories and services from MiTAC Holdings and its affiliates totaling $211.9 million, $173.4 million and $217.4 million during fiscal years 2020, 2019 and 2018, respectively. Our sales to MiTAC Holdings, and its affiliates during fiscal years 2020, 2019 and 2018 totaled $1.1 million, $0.8 million and $2.4 million, respectively. Most of the purchases and sales in 2020, 2019 and 2018 were pursuant to the agreements mentioned under the heading “Agreements with MiTAC Holdings and Affiliates” below.

Our business relationship with MiTAC Holdings and its affiliates has been informal and is not governed by long-term commitments or arrangements with respect to pricing terms, revenue or capacity commitments.

We negotiate pricing and other material terms on a case-by-case basis with MiTAC Holdings and its affiliates. We have adopted a policy requiring that material transactions with MiTAC Holdings or its related parties be approved by the Audit Committee, which is composed solely of independent directors. In addition, Matthew Miau’s compensation is approved by the Nominating and Corporate Governance Committee, which is also composed solely of independent directors.

Beneficial Ownership of our Common Stock by MiTAC Holdings

As noted above, MiTAC Holdings and its affiliates in the aggregate beneficially owned approximately 9,159,868 shares of our common stock as of January 22, 2021. These shares are owned by the following MiTAC affiliates:

MiTAC Affiliate

Shares

MiTAC Holdings(1)

5,299,980

Synnex Technology International Corporation(2)

3,859,888

Total

9,159,868

 

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(1)

Shares held via Silver Star Developments Ltd., a wholly-owned subsidiary of MiTAC International. Excludes 190,316 shares directly held by Matthew Miau, 217,050 shares indirectly held by Mathew Miau through a charitable remainder trust, and 189,603 shares held by his wife.

 

(2)

Synnex Technology International Corp. (Synnex Technology International) is a separate entity from us and is a publicly-traded corporation in Taiwan. Shares are held via Peer Development Ltd., a wholly-owned subsidiary of Synnex Technology International. MiTAC Holdings owns a noncontrolling interest of 8.7% in MiTAC Incorporated, a privately-held Taiwanese company, which in turn holds a noncontrolling interest of 15.2% in Synnex Technology International.  Neither MiTAC Holdings nor Mr. Miau is affiliated with any person, entity, or entities that hold a majority interest in MiTAC Incorporated.

While the ownership structure of MiTAC Holdings and its affiliates is complex, it has not had a material adverse effect on our business in the past, and we do not expect it do so in the future.

Synnex Technology International is a separate entity from us and is a publicly-traded corporation in Taiwan that currently provides distribution and fulfillment services to various markets in Asia and Australia, and is also our potential competitor. Neither MiTAC Holdings nor Synnex Technology International is restricted from competing with us.

Agreements with MiTAC Holdings and Affiliates

We have entered into several additional agreements with affiliates of MiTAC Holdings. These agreements do not constitute contracts or obligations by any party to purchase products or services from the other parties, nor do they restrict our ability to conduct our business, except where so noted below. Accordingly, we do not believe that the termination of any of these agreements would have a material adverse effect on our business. Pursuant to these agreements, the terms for contracted services or purchased products are individually negotiated and, if agreed upon by the parties, such terms are included in a purchase order. In the fiscal year ended November 30, 2020, we paid an aggregate of approximately $185.6 million to MiTAC Holdings and its affiliates, most of which was paid pursuant to the distribution and supply agreements described below.

Distribution Agreement. In April 2009, we entered into a distribution agreement with MiTAC Digital Corp. Pursuant to the agreement, we may purchase certain MiTAC Digital products for distribution in the United States. The agreement had an initial term of one year and automatically renews for subsequent one year terms. The agreement may be terminated without cause by either party upon 90 days prior written notice of termination to the other party.

Logistics Services Agreements. In March 2010, we entered into a logistical services agreement with MiTAC Digital Corp. Pursuant to the agreement, we provide certain reverse logistics services related to products returned by MiTAC Digital’s customers in Canada. The agreement had an initial term of two years and automatically renews for subsequent one year terms. The agreement may be terminated without cause either by the mutual written agreement of the parties or, following the initial two year term, by either party without cause upon 90 days prior written notice of termination to the other party.

Distribution Agreement—Stocking. In October 2006, we entered into a distribution and stocking agreement with MiTAC International. Pursuant to the agreement, we may purchase certain MiTAC International products for distribution in the United States. The agreement had an initial term of one year and automatically renews for subsequent one year terms. The agreement may be terminated without cause either by the mutual written agreement of both parties or by either party without cause upon 30 days prior written notice of termination to the other party.

Manufacturing Supply Agreement. In October 2014, our subsidiary Hyve Solutions Corporation and its affiliates and subsidiaries entered into a manufacturing supply agreement with MiTAC Computing Technology Corporation. Pursuant to the agreement, Hyve Solutions may purchase and use certain MiTAC Computing Technology products to fulfill manufacturing contracts for third party customers worldwide. The agreement had an initial term of one year and automatically renews for subsequent one year terms. The agreement may be terminated

21

 


 

without cause by the mutual written agreement of both parties or by either party without cause upon 30 days prior written notice of termination to the other party. During fiscal 2019, we also embarked upon a collaboration that is in its nascent stage with MiTAC Computing Technology Corporation in furtherance of our design and supply program.

Logistics Services Agreement. In November 2011, we entered into a logistics services agreement with Getac, Inc., a subsidiary of Getac Technology Corporation, where we provide integration services and pick, pack and ship services for Getac.  The agreement had an initial term of two years and automatically renews for subsequent one year terms. The agreement may be terminated without cause by the mutual written agreement of both parties or by either party without cause upon 90 days prior written notice of termination to the other party.

 

Distribution Agreement. In February 2012, we entered into a distribution agreement with Getac, Inc.  Pursuant to the agreement, we may purchase certain Getac products for distribution in the United States and Canada. The agreement has an initial term of one year and automatically renews for subsequent one year terms. The agreement may be terminated without cause by either party upon 30 days prior written notice of termination to the other party.

 

Indemnification Agreements

We have entered into indemnification agreements with each of our current directors and executive officers. These agreements require us to indemnify these individuals to the fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to us, and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified. We also intend to enter into indemnification agreements with our future directors and executive officers.

 

Policies and Procedures for Approving Related Party Transactions

We have adopted a policy requiring material transactions relating to related party transactions to be approved by the Audit Committee, which is composed of disinterested members of the Board.

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth certain information as of January 22, 2021, as to shares of our common stock beneficially owned by: (i) each person who is known by us to own beneficially more than 5% of our common stock, (ii) each of our executive officers listed in the 2020 Summary Compensation Table on page 39, (iii) each of our directors and (iv) all our current directors and executive officers as a group. Unless otherwise stated below, the address of each beneficial owner listed on the table is c/o SYNNEX Corporation, 44201 Nobel Drive, Fremont, California 94538. The percentage of common stock beneficially owned is based on 51,596,838 shares outstanding as of January 22, 2021.

 

Amount and Nature of Beneficial Ownership

 

Name and Address of Beneficial Owner

Shares Beneficially Owned(1)

Right To Acquire Beneficial Ownership within 60 days of January 22, 2021(2)

Total

Percentage Beneficially Owned(1)(2)

5% Stockholders:

 

 

 

 

 

MiTAC International Corporation and related parties(3)

9,756,837

 

9,756,837

18.9%

FMR LLC(4)

245 Summer Street
Boston, MA 02210

6,708,510

 

6,708,510

13.0%

The Vanguard Group(5)

100 Vanguard Blvd

     Malvern, PA 19355

3,878,682

 

3,878,682

7.5%

BlackRock, Inc.(6)

   55 East 52nd Street

New York, NY  10022

3,380,121

 

3,380,121

6.6%

 

 

 

 

 

 

Directors and Named Executive Officers:

 

 

 

 

 

Dennis Polk

118,810

131,218

 

250,028

*

Marshall Witt

36,461

46,176

 

82,637

*

Michael Urban

14,589

11,389

 

25,978

*

Peter Larocque

42,898

2,041

 

44,939

*

Christopher Caldwell (7)

42,946

71,742

 

114,688

*

Fred Breidenbach

16,771

 

16,771

*

Laurie Simon Hodrick

3,407

 

3,407

*

Hau Lee

19,084

6,000

 

25,084

*

Matthew Miau(3)(8)

596,969

 

596,969

1.2%

Kevin Murai

125,860

165,609

 

291,469

*

Gregory Quesnel

13,866

 

13,866

*

Dwight Steffensen

546

 

546

*

Ann Vezina

6,077

 

6,077

*

Thomas Wurster

14,484

 

14,484

*

Duane Zitzner

23,390

 

23,390

*

Andrea Zulberti

15,859

 

15,859

*

All current directors and executive officers as a group (17 persons)

1,126,847

443,855

 

1,570,702

3.0%

__________

*       Amount represents less than 1% of our common stock.

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(1)

We have determined beneficial ownership in accordance with the SEC rules. To our knowledge, the persons named in the table have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them, subject to community property laws, where applicable, and the information contained in the footnotes to this table.  

(2)

For purposes of computing the percentage of outstanding shares held by each person or group of persons named above, shares which such person or group has the right to acquire upon exercise of stock options within 60 days of January 22, 2021 are deemed to be outstanding, but are not deemed to be outstanding for the purposes of computing the percentage ownership of any other person.

 

 

(3)

Based on information reported on a Schedule 13G/A filed with the SEC on February 5, 2020 and subsequent Forms 4 filed with the SEC on April 27, 2020, this amount represents 5,299,980 shares held by Silver Star Developments Ltd. and 3,859,888 shares held by Peer Developments Ltd. Silver Star Developments Ltd. is a wholly-owned subsidiary of MiTAC International Corporation. The principal business office for MiTAC International Corporation and Silver Star Developments Ltd. is No. 200 Wen Hua 2nd Road, Guishan Dist., Taoyuan City 333, Taiwan. Jhi-Wu Ho and Hsiang-Yung Yang, the directors of Silver Star Developments Ltd., hold shared voting and dispositive power over the shares held by Silver Star Developments Ltd. Peer Developments Ltd. is a wholly-owned subsidiary of Synnex Technology International Corporation. The principal business office for Synnex Technology International Corporation and Peer Developments Ltd. is 4th Floor, No. 75 Sec. 3, Minsheng East Road, Zhongshan Dist., Taipei City 104, Taiwan. Matthew Miau and Shu-Wu Tu, the directors of Peer Developments Ltd., hold shared voting and dispositive power over the shares held by Peer Developments Ltd. Matthew Miau is the Chairman of the Board of Directors of MiTAC International Corporation and Synnex Technology International Corp. and a director of SYNNEX. Each of the reporting persons disclaims membership in a group. The beneficial ownership of the 596,969 shares Matthew Miau claims includes 190,316 shares directly held by Mr. Miau, 217,050 shares indirectly held by MASJ Holding Charitable Remainder Trust, and 189,603 shares indirectly held by Mr. Miau’s spouse. In addition, MiTAC International Corporation disclaims beneficial ownership of the 3,859,888 shares directly held by Peer Developments Ltd. and disclaims beneficial ownership of the 596,969 shares by Mr. Miau. Synnex Technology International Corporation disclaims beneficial ownership of the 5,299,980 shares directly held by Silver Star Developments Ltd. and disclaims beneficial ownership of the 596,969 shares by Mr. Miau. Mr. Miau disclaims beneficial ownership of the 5,299,980 shares directly held by Silver Star Developments Ltd. and disclaims beneficial ownership of the 3,859,888 shares directly held by Peer Developments Ltd.

 

 

(4)

Based solely on information reported on a Schedule 13G/A filed with the SEC on February 7, 2020 by FMR LLC, this amount reflects securities beneficially owned, or that may be deemed to be beneficially owned, by FMR LLC, certain of its subsidiaries and affiliates, and other companies. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders’ voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders’ voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act advised by Fidelity Management & Research Company, a wholly owned subsidiary of FMR LLC, which power resides with the Fidelity Funds’ Boards of Trustees. Fidelity Management & Research Company carries out the voting of the shares under written guidelines established by the Fidelity Funds’ Boards of Trustees. FMR reports sole voting power with respect to 586,432 shares and sole dispositive power with respect to 6,708,510.

 

 

(5)

Based solely on information reported on a Schedule 13G/A filed with the SEC on February 12, 2020 by The Vanguard Group, Vanguard Fiduciary Trust Company, a wholly-owned subsidiary of The Vanguard Group, Inc., is the beneficial owner of 15,676 shares, as a result of its serving as investment manager of collective trust accounts. Vanguard Investments Australia, Ltd., a wholly-owned subsidiary of The Vanguard Group, Inc., is the beneficial owner of 13,502 shares as a result of its serving as investment manager of Australian investment offerings. The Vanguard Group reports sole voting power with respect to 21,377 shares and sole dispositive power with respect to 3,855,205 shares. The Vanguard Group reports shared voting power with respect to 7,801 shares and shared dispositive power with respect to 23,477 shares.

 

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(6)

Based solely on information reported on a Schedule 13G/A filed with the SEC on February 1, 2021 by BlackRock, Inc., this amounts consists of shares beneficially owned by BlackRock, Inc. by virtue of holdings by the following subsidiaries: BlackRock Advisors, LLC, BlackRock Asset Management Canada Limited, BlackRock Asset Management Ireland Limited, BlackRock Asset Management Schweiz AG, BlackRock Financial Management, Inc., BlackRock Fund Advisors, BlackRock Institutional Trust Company, N.A., BlackRock Investment Management (Australia) Limited, BlackRock Investment Management (UK) Limited, BlackRock Investment Management, LLC, BlackRock Life Limited, BlackRock (Netherlands) B.V., and Blackrock Advisors (UK) Limited. Various persons have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of the shares. No one person’s interest in the shares is more than five percent of the total outstanding common shares. BlackRock reports sole voting power with respect to 3,232,223 shares and sole dispositive power with respect to 3,380,121 shares.

 

 

 

(7)

As a result of the Spin-off, Christopher Caldwell, formerly Executive Vice President and President of SYNNEX' Concentrix business, became President and Chief Executive Officer of Concentrix Corporation.

 

(8)

Mr. Miau’s share ownership total includes indirect beneficial ownership of 217,050 shares held by MASJ Holding Charitable Remainder Trust, for which his wife serves as trustee, and 189,603 shares held by his wife.

 

 

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EXECUTIVE COMPENSATION

Compensation Discussion and Analysis

 

The Compensation Committee has overall responsibility for SYNNEX’ executive compensation policies as provided in a written charter adopted by the Board. The Compensation Committee is empowered to review and approve the compensation and compensation procedures for the executive officers. In addition, in June 2017, the Board determined that, consistent with the stockholders’ advisory vote in March 2017, it will include in our proxy materials a stockholder vote on executive compensation every year until the next required stockholder vote on the frequency of stockholder votes concerning executive compensation.

At last year’s Annual Meeting, our stockholders approved our executive compensation programs, as disclosed in last year’s proxy statement, in an advisory “say on pay” vote, with 44,351,633 votes cast in favor of approval and approximately 989,388 votes cast against. As the Compensation Committee evaluated our compensation principles and policies during fiscal 2020, it was mindful of this favorable outcome and the stockholders’ strong support of our compensation objectives and compensation programs. The Compensation Committee has maintained its general approach to executive compensation with adjustments to the timing of annual equity award grants due to the then impending separation of the Concentrix business.

On December 1, 2020, SYNNEX completed the separation of its Concentrix business from SYNNEX (the “Spin-off”), which resulted in two independent, publicly traded companies: SYNNEX and Concentrix Corporation. As a result of the Spin-off, Christopher Caldwell, formerly Executive Vice President and President of SYNNEX' Concentrix business, became President and Chief Executive Officer of Concentrix Corporation and resigned from SYNNEX. Equity awards granted prior to the Spin-off generally were bifurcated at closing of the Spin-off so that holders of stock options, restricted stock or non-performance RSUs with respect to common stock of SYNNEX prior to the Spin-off held options, restricted stock or RSUs, as applicable with respect to common stock of both SYNNEX and Concentrix Corporation after the Spin-off. For the fiscal year ended November 30, 2020, annual equity grants to associates, including officers, were structured so that associates had no vested right to underlying equity before January 2021, although they will receive service credit from October 2020.

 

Objectives and Philosophy of Our Compensation Program  

Our compensation philosophy is to pay for performance as well as to offer competitive compensation in order to attract and retain talented executive officers. With respect to “pay for performance,” our program is designed to align the interests of our executive officers with those of our stockholders, for whom they work. A significant portion of an executive officer’s total compensation depends on the executive officer's performance relative to operational and financial objectives. In particular, in determining total compensation, we stress a compensation philosophy that is performance-driven with relatively moderate base salaries, but high variability through our Management Incentive Plan and equity compensation. We believe that total compensation should reflect some level of risk associated with the performance of the business. As a result, a substantial portion of an executive officer’s total compensation is in the form of profit sharing and equity grants.

We believe that the compensation of our executive officers should reflect their success as a management team, as well as individuals, in attaining key operating objectives, such as growth of sales, growth of operating earnings and earnings per share, return on invested capital, growth or maintenance of market share, long-term competitive advantage, and ultimately, in attaining an increased market price for our common stock. We believe that the performance of our executive officers in managing SYNNEX, considered in light of general economic conditions, our company and industry, and competitive conditions, should be the basis for determining their overall compensation.

We also believe that their compensation should not be based on the short-term performance of our stock, whether favorable or unfavorable, as we expect the price of our stock will, in the long-term, reflect our operating performance, and ultimately, the management of SYNNEX by our executive officers. We seek to have the long-term performance of our stock reflected in executive compensation through our stock option, restricted stock, restricted stock unit and other equity incentive programs.

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Competitive compensation is important if we are to attract and retain the talent necessary to lead SYNNEX in the competitive and changing business environment in which we operate. In this regard, we are mindful of the median level of compensation of our competitors as well as of the median level of compensation in the local area in which the executive is located. We strive for internal equity among associates according to job responsibilities, experience, capability, and individual performance. Our executive compensation program impacts all associates by setting general levels of compensation and helping to create an environment of goals, rewards and expectations. As we believe the performance of every employee is important to our success, we are mindful of the effect that our executive compensation and incentive program has on all of our associates.

The differences in compensation between the various executive officers are based primarily upon individual differences in job responsibility, contribution, performance and increase in the global scope of the business and complexity and demands of understanding, managing and influencing global operations and integrated success. An executive with responsibility over a broader, more difficult or more profitable business unit or corporate division will have potential for greater compensation than an executive with responsibility over a narrower, less complex or less profitable business unit or corporate division.

Our compensation philosophy emphasizing performance permeates total compensation for both executive officers and non-executive associates. While we do not have an exact formula for allocating between cash and non-cash compensation, we try to balance long-term equity versus short-term cash compensation and variable compensation versus fixed compensation. As noted above, executive officers who have greater ability to influence the performance of SYNNEX receive more long-term equity as a percentage of total compensation than non-executive associates who have less ability to influence the performance of SYNNEX. Similarly, performance-related cash compensation for such executive officers as a percentage of total compensation is greater than performance-related cash compensation of non-executive associates. The goal is to create a balanced culture of high performance without undue risk assumption.

Elements of Our Compensation Program

As a result of the above assessment process and as reviewed annually by the Compensation Committee, we have implemented a compensation program for our executive officers that consists of four compensation components:

 

(1)

base salary;

 

(2)

Management Incentive Plan bonus;

 

(3)

equity grants; and

 

(4)

performance-based, long-term incentives (LTI).

We and the Compensation Committee believe that the LTI program ties executive deferred compensation to business performance and also aligns total compensation closer to the market comparatives in value and in form.

The compensation elements are usually administered in three cycles. Merit raises for base salaries are generally performed in the April-May period. Annual equity grants in the form of stock options, restricted stock awards or restricted stock units (RSUs), other than LTI awards, are generally awarded in the September-October period. Management Incentive Plan bonuses are generally paid in the December-January period and LTI awards in the form of performance-based RSUs are generally granted in the January-February period. However, all of the above elements are reviewed and determined on at least an annual basis by the Compensation Committee.

The components of our compensation program are described as follows:

Base Salary.    Base salaries are designed to provide a consistent cash flow throughout the year as compensation for day-to-day responsibilities. In prior years, we maintained relatively low base salaries to incent

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executive officers to achieve the Management Incentive Plan targets and thus create a performance-driven environment. The Compensation Committee increased base salaries and decreased Management Incentive Plan bonuses to reduce the variability of the cash compensation component and to discourage excessive risk-taking and short-term business decisions to meet payout thresholds; however, base salaries generally remain near the 25th percentile for the CEO position and near the 50th-75th percentile for the other comparable positions in our peer group and are now considered relatively moderate.

Base salaries for our executive officers are reviewed and, if deemed appropriate, adjusted on an annual basis. Merit increases are based on, among other things, individual performance, any new responsibilities assumed and the magnitude of our merit increase budget for the year. With respect to each executive’s individual performance, we assess the breadth and complexity of his area of responsibility and his individual contributions and seek to quantify the same. Determination of base salary is not made in accordance with a strict formula that measures weighted qualitative and quantitative factors, but rather is based on objective data synthesized to competitive ranges and to internal policies and practices.

Management Incentive Plan.   Management Incentive Plan bonuses reward individuals for achieving operating and financial goals, in keeping with a performance-driven environment conducive to increasing stockholder value. Bonuses granted to executive officers under our Management Incentive Plan are determined by the Compensation Committee based upon both qualitative and quantitative considerations. The Compensation Committee establishes in writing specific performance goals for each participant, which must be achieved in order for an award to be earned under our Management Incentive Plan for that fiscal year. Performance goals under the Management Incentive Plan may be based upon any one or more of the following: net income per share, revenue, cash flow, earnings per share, return on equity, total stockholder return, share price performance, return on capital, return on assets or net assets, income or net income, operating income or net operating income, operating profit or net operating profit, operating margin or profit margin, return on operating revenue, return on invested capital, sales productivity, sales growth, market segment share or similar financial performance measures as may be determined by the Compensation Committee. The Compensation Committee set reasonably stringent minimum Management Incentive Plan hurdles and performance metrics. The Compensation Committee is also authorized to recoup any bonuses or portion thereof to mitigate the potential for undue risk assumption.

Management Incentive Plan bonuses for fiscal year 2020 to the executive officers were based upon a combination of (1) our achievement of certain net income target performance, with adjustments based upon achievement of certain Return on Invested Capital, or ROIC, performance (the Technology Solutions target metric), and (2) the achievement of certain threshold EBITDA target performance by our Concentrix business. For all executive officers other than Messrs. Urban, Larocque, and Caldwell, the Technology Solutions target performance metric accounted for 50% of the officer’s bonus measurement, and the Concentrix target performance metric accounted for 50%. For Mr. Urban, as President, Worldwide Technology Solutions Distribution, and Mr. Larocque, as President, North America Technology Solutions, the Technology Solutions target performance metric accounted for 100% of his bonus measurement. For Mr. Caldwell, as the President of Concentrix, the Concentrix target performance metric accounted for 100%. For the Technology Solutions and Concentrix businesses, the net income and ROIC targets for fiscal year 2020 were increased from fiscal year 2019. Executive officers are not eligible for bonuses unless we meet or exceed the target performance percentages of the internally established net income and EBITDA goals. The minimum threshold target performance percentage is 75% and the maximum target performance percentage is 133.3% for all executive officers.

The actual bonus payable, if the applicable minimum threshold percentages are met, is paid on a sliding scale of the target performance actually achieved and dollar limits pre-established by the Compensation Committee for each individual executive officer. In the case of the Technology Solutions component of the performance bonus, this amount then is adjusted by the percentage increase or decrease corresponding with our performance as measured by the ROIC performance metric. In addition, our President and Chief Executive Officer has discretion to recommend to the Compensation Committee that it decrease bonuses for all other executive officers.

If the minimum threshold target performance percentage of the internally established net income goal or EBITDA goal is not achieved, no bonuses would be paid to the executive officers, regardless of the achievement of the ROIC performance metrics. The minimum threshold target performance percentage of the Technology Solutions

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component was based on the previous year’s internally established net income per share goal plus a reasonable “stretch” goal taking into account the then economic environment. Alternatively, if the maximum target performance percentage of the internally established net income goal or EBITDA goal is exceeded, no incremental bonuses beyond the maximum award would be paid to the executive officers. The Management Incentive Plan bonus for each executive officer is based upon a certain percentage of his annual base salary for the applicable fiscal year.

In the event that the minimum threshold performance target is met, then our executive officers would receive a bonus based on the following approximate percentage of his fiscal year base salary for fiscal 2020 and for fiscal 2019, as applicable:

 

Name

 

Minimum Payment (if Threshold is Met) as Percentage of

Base Salary(1)(%)

 

Target Payment

as Percentage of

Base Salary(1)(%)

 

Maximum

Payment as

Percentage of Base Salary(1)(%)

Dennis Polk

 

125

 

250

 

375

Marshall Witt

 

50

 

100

 

150

Michael Urban

 

100

 

200

 

300

Peter Larocque

 

100

 

200

 

300

Christopher Caldwell

 

100

 

200

 

300

 

 

(1)

The applicable base salary is each officer’s then-current base salary at the end of the fiscal year.

 

There is potential for actual awards under the Management Incentive Plan to be less than such minimum targets depending upon corporate performance, as well as the executive officer’s performance of certain individual goals that were predetermined by our President and Chief Executive Officer. In addition, the Compensation Committee has discretion to decrease the bonus for all executive officers. The Compensation Committee’s discretion is exercised based upon discussions with our President and Chief Executive Officer, taking into account his ability to manage and monitor the performance of the other named executive officers.

For fiscal year ended November 30, 2020, we achieved a net income of $529.2 million, which contributed to our exceeding both the minimum threshold of the Technology Solutions component and the Concentrix EBITDA component, and as a result our executive officers received the following bonuses:

Name

Management Incentive Plan Bonuses

Dennis Polk

$2,189,269

Marshall Witt

$611,241

Michael Urban

$1,376,272

Peter Larocque

$1,351,249

 

Mr. Caldwell resigned from SYNNEX upon the Spin-off and as a result did not receive the Management Incentive Plan bonus from SYNNEX.

Based on comparable peer companies, the total cash compensation targets, including both base salary and Management Incentive Plan bonus, excluding any recommended adjustments by the Compensation Committee, for our executive officers for comparable positions in our peer group for fiscal year 2020 were as follows:

 

 

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Name

Total Cash Compensation Target Percentile

Dennis Polk

Below 75th Percentile

Marshall Witt

Below 50th Percentile

Michael Urban

Above 75th Percentile

Peter Larocque

Above 75th Percentile

Christopher Caldwell

Above 75th Percentile

 

Management Incentive Plan bonuses for fiscal year 2021 to the executive officers will be based upon a combination of, depending on the officer: (1) our achievement of certain non-GAAP net income target performance, with adjustments based upon achievement of certain ROIC performance of (i) our Distribution business (the Distribution target metric) and (2) the achievement of certain non-GAAP net income target performance by our entire business (the SYNNEX target metric). For all executive officers other than Messrs. Urban and Larocque, the Distribution target performance metric accounts for 50% of the officer’s bonus measurement, and the SYNNEX target performance metric accounts for 50%. For Mr. Urban, as President, Worldwide Technology Solutions Distribution, and Mr. Larocque, as President, North American Technology Solutions, the Distribution target performance metric accounts for 100% of his bonus measurement.

Equity Grants.    Long-term incentives involve equity grants and performance retention grants, including restricted stock awards, RSUs and stock options. Restricted stock and RSUs help us to retain key personnel, whereas stock options provide incentive for creating incremental stockholder value. The value of equity grants and performance retention grants derives from stock price, which aligns executive compensation with stockholder value.

Equity grants are based on a number of considerations. The Compensation Committee’s determination with respect to stock option grants, restricted stock award and RSU grants to executive officers for fiscal year ended November 30, 2020 can be viewed from two perspectives: our company and our executive officer. From our company’s perspective, the Compensation Committee considered the following principal elements:

•   corporate performance;

•   dilution to stockholders; and

•   related expense to our company.

From our executive officers’ perspective, the Compensation Committee considered the following principal elements:

•   job responsibilities and past performance;

•   likely future contributions;

•   potential reward to the executive officer if the stock price appreciates in the public market;

•   management tier classification;

•   equity grants made by competitors; and

•   existing vested and unvested equity holdings.

Determination of equity grant amounts is not made in accordance with a strict formula that measures weighted qualitative and quantitative factors, but rather is based on objective data synthesized to competitive ranges and to internal policies and practices, including an overall review of both employee and corporate performance and

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the value of equity grants of comparable officers at comparable companies. We evaluate our corporate performance objective primarily by our financial performance, including growth, return on equity, ROIC, and diluted earnings per share, or EPS. Equity grants may also be made to new executive officers upon commencement of employment and, on occasion, to executive officers in connection with a significant change in job responsibility. We also distinguish between equity grants of stock options, restricted stock awards or RSUs based upon the officer’s position. We believe that stock options carry more risk than restricted stock. As such, we expect certain officers with the most direct impact on our overall performance to accept more equity risk and their grants are more heavily weighted towards stock options rather than restricted stock awards or RSUs.

To further ensure that the long-term interests of executive officers are closely aligned with those of stockholders, we request that they, except our President and Chief Executive Officer, hold an equity position in SYNNEX of the lesser of the following: (1) at least two times his annual base salary or (2) $1,000,000. This equity position can be satisfied by holding shares of common stock, whether vested or unvested, or vested in-the-money stock options. With respect to our President and Chief Executive Officer, we request that he hold an equity position in SYNNEX of the lesser of the following: at least two times the sum of his annual base salary plus target bonus as in effect from time to time or $2,000,000. Stock ownership for our President and Chief Executive Officer includes common stock owned personally or in trust for his benefit, but does not include unvested restricted stock or stock units, or stock options that are not vested in-the-money. In addition, to avoid any impropriety or even the appearance of such, the Compensation Committee in most cases makes equity grants only during open trading windows. If the date of an equity grant falls within a trading black-out period, then the effective grant date is upon the expiration of the third trading day after the trading black-out period ends. The exceptions to this standard procedure are the granting of Long-Term Incentive RSUs, as discussed below, which are valued as of the first business day of the fiscal year, and the granting of equity awards to new associates, which are granted as of the date employment begins. The exercise price for all stock option grants is the market closing price of our common stock on the effective grant date. In addition, annual equity grants to executive officers are generally awarded each year in the September-October period. For the fiscal year ended November 30, 2020, however, annual equity grants to executive officers were structured so that the officers had no vested right to underlying equity before January 2021, although they received service credit from October 2020; these awards were not subject to bifurcation during the Spin-off. We believe that the automatic and consistent nature of our equity grant process avoids the possibility of timing deviations.

Performance-Based, Long-Term Equity Incentives. Our LTI program, currently implemented through our 2020 Stock Incentive Plan, is designed to provide long-term retention incentives for our executive officers, and also to create an alignment between the interests of our executive officers and those of our stockholders because appreciation in the stock price of our shares will benefit both our executive officers and our stockholders. Under the 2020 Stock Incentive Plan, the Compensation Committee may grant LTI awards that require, as a condition to vesting, the attainment of one or more performance targets specified by the Compensation Committee from the list of possible financial and operational performance metrics specified in the 2020 Stock Incentive Plan.

We and the Compensation Committee believe that the LTI program ties executive deferred compensation to business performance and also aligns total compensation closer to the market comparatives in value and in form.

The Compensation Committee generally considers LTI program awards during the first quarter of a fiscal year; however, due to the then impending Spin-off during fiscal year 2020, the Compensation Committee determined to consider any LTI program awards only after the Spin-off and did not approve a 2020-2022 LTI program during last year. Since the spin-off occurred on December 1, 2020 and to account for last year, the Committee on January 20, 2021 approved a 2021-2022 LTI program along with the 2021-2023 LTI program. There are separate performance measures and metrics for each LTI program. In determining the EPS target performance metrics, we focused upon our growth, return on equity, ROIC, and EPS. The minimum threshold EPS target performance percentage is 75% and the maximum target performance percentage is 166.7% for all executive officers. If the minimum threshold target performance percentage of the internally established EPS goal is not achieved, no performance-based RSUs vest for the executive officers, regardless of the achievement of the ROIC performance metrics. The minimum threshold target performance percentage is based on the previous year’s EPS plus a reasonable “stretch” goal taking into account the then current economic environment. Alternatively, if the

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maximum target performance percentage of the internally established EPS goal is exceeded, no incremental performance-based RSU vesting beyond the maximum award benefits the executive officers.

The dollar value of the LTI awards is based upon one-third of each executive officer’s 100% target Management Incentive Plan award for the 2021 fiscal year. The actual number of performance-based RSUs, if the applicable minimum threshold percentage is met, vest on a sliding scale of the target EPS performance percentage actually achieved and the dollar limits pre-established by the Compensation Committee for each individual executive officer. This amount is then adjusted by the percentage increase or decrease corresponding with our performance as measured by the ROIC performance metric. To the extent that we fail to meet our performance targets for the applicable 2-year or 3-year period, then that portion of the shares underlying the performance-based RSUs are canceled and do not vest. If, for example, we achieve an EPS equal to 75% of the EPS target our executive officers would receive 50% of the targeted shares. Similarly, if we achieve an EPS equal to 166.67% of EPS target, then our executive officers would receive 200% of the targeted shares.

In order to allow for vesting of 200% of the target performance-based RSUs (pursuant to the vesting criteria discussed above), each executive officer is granted a number of performance-based RSUs equal to two times the target grant. For fiscal year 2021 for the 2-Year LTI Program, based upon the per share price on the first business day of fiscal 2021 (December 3, 2020), of $76.02, the executive officers were granted performance-based RSUs as follows:

 

Number of RSUs granted (represents maximum award of 200% of target award)

Value of LTIs at maximum award of 200% of target award

Number of RSUs vesting at 100% target performance

Value of LTIs at 100% target performance (represents 100% of target award)

Number of RSUs vesting at 75% of target performance

Value of LTIs at 75% target performance (represents 50% of target award)

Dennis Polk

15,894

$1,208,262

7,947

$604,131

3,973

$302,027

Marshall Witt

5,480

$416,590

2,740

$208,295

1,370

$104,147

Michael Urban

9,646

$733,289

4,823

$366,644

2,411

$183,284

Peter Larocque

9,470

$719,909

4,735

$359,955

2,367

$179,939

 

For fiscal year 2021 for the 3-Year LTI Program, based upon the per share price on the first business day of fiscal 2021 (December 1, 2020), of $76.02, the executive officers were granted performance-based RSUs as follows:

 

Number of RSUs granted (represents maximum award of 200% of target award)

Value of LTIs at maximum award of 200% of target award

Number of RSUs vesting at 100% target performance

Value of LTIs at 100% target performance (represents 100% of target award)

Number of RSUs vesting at 75% of target performance

Value of LTIs at 75% target performance (represents 50% of target award)

Dennis Polk

15,894

$1,208,262

7,947

$604,131

3,973

$302,027

Marshall Witt

5,480

$416,590

2,740

$208,295

1,370

$104,147

Michael Urban

9,646

$733,289

4,823

$366,644

2,411

$183,284

Peter Larocque

9,470

$719,909

4,735

$359,955

2,367

$179,939

 


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In addition, the vesting of the LTI awards is contingent upon the executive officer still being employed by us on the date of vesting.  

In considering the appropriate performance metric for the LTI awards for fiscal year 2021, the Compensation Committee, with the assistance of senior management, concluded that applicable EPS and ROIC performance metrics be the same for all executive officers. The Compensation Committee also considered the aggregate projected cost of the equity grants to the executive officers under FASB ASC Topic 718.

With respect to both our equity grants and the LTI program, the Compensation Committee considers at least annually whether to approve specific long-term equity awards based on the recommendations of our President and Chief Executive Officer (except with respect to his own awards). When determining awards, the Compensation Committee considers factors such as the individual’s position with us, his prior and expected future performance and responsibilities, our retention and succession needs, and the long-term incentive award levels for comparable executives and key associates at companies that compete with us for executive and managerial talent. The Compensation Committee also considers the total value of equity awards previously granted and the existing equity ownership of each executive officer when determining restricted stock award levels, with particular attention paid to the value of unvested awards. In addition, the Compensation Committee considers the potential dilution and accounting costs of long-term equity awards as compared to those granted at other publicly traded companies that compete with us for business and executive talent. The 2020 Stock Incentive Plan does not state a formulaic method for weighing these factors, nor does the Compensation Committee employ one.

In general, we believe that the rebalancing of annual, variable compensation modified compensation program for our executive officers meets the objectives of rewarding executive officers for measurable results in meeting and exceeding goals and mitigates the potential for undue risk assumption.

Deferred Compensation Plan. Our deferred compensation plan permits designated associates to accumulate income for retirement and other personal financial goals by deferring present income through a nonqualified plan. Our deferred compensation plan became effective on January 1, 1994 and was amended on January 7, 2008 to conform with changes required by Section 409A of the Code. Currently, none of our executive officers participate in this plan.

Benefits, Perquisites and Other. Other benefits to our executive officers include medical, dental and life insurance, as well as 401(k) plan participation. These benefits are generally available to all our associates.

Executive Compensation Discussion for the Named Executive Officers

President and Chief Executive Officer. Dennis Polk is our President and Chief Executive Officer and has served in this capacity since March 2018. He is also a Director and has served in this capacity since February 2012. Mr. Polk previously served as Chief Operating Officer, Chief Financial Officer and Senior Vice President of Corporate Finance since joining us in February 2002. Mr. Polk’s annual base salary was $725,000 in fiscal year 2020. For fiscal 2020, Mr. Polk also received a bonus of $2,189,269 under our Management Incentive Plan. Some of the primary factors affecting Mr. Polk’s compensation include, among other things, our fiscal year 2020 financial performance compared to our pre-established financial goals, comparative compensation of competitor companies, his responsibility for the strategy of our company, our Spin-off of Concentrix Corporation, and his overall leadership responsibility of our company.

Chief Financial Officer.  Marshall Witt has served as our Chief Financial Officer since April 2013. Mr. Witt’s annual base salary was $500,000 in fiscal year 2020. For fiscal 2020, Mr. Witt also received a bonus of $611,247 under our Management Incentive Plan. Some of the primary factors affecting Mr. Witt’s compensation include, among other things, our performance toward our pre-established financial goals, his contribution to the overall leadership of our company, our Spin-off of Concentrix Corporation and related financing amendments, and his leadership of the worldwide finance organization.


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President, Worldwide Technology Solutions Distribution.  Michael Urban has served as our President, Worldwide Technology Solutions Distribution since February 2019. Mr. Urban is responsible for our worldwide Technology Solutions distribution business. Mr. Urban’s base salary was $550,000 in fiscal year 2020. For fiscal 2020, Mr. Urban also received a bonus of $276,272 under our Management Incentive Plan and a restricted stock award of 1,532 shares. Some of the primary factors affecting Mr. Urban’s compensation include, among other things, our performance toward our pre-established financial goals, the strong performance of his division within our company, his contribution to the overall leadership of our company, and his leadership of the distribution function of our company worldwide.

President, North America Technology Solutions. Peter Larocque has served as our President, North America Technology Solutions since November 2013 and previously served as President, U.S. Distribution from July 2006 through November 2013, as Executive Vice President of Distribution from June 2001 to July 2006, and as Senior Vice President of Sales and Marketing from September 1997 until June 2001. Mr. Larocque is responsible for our North America Technology Solutions. Mr. Larocque’s annual base salary was $540,000 in fiscal year 2020. For fiscal 2020, Mr. Larocque also received a bonus of $271,249 under our Management Incentive Plan. Some of the primary factors affecting Mr. Larocque’s compensation include, among other things, our performance toward our pre-established financial goals, the strong performance of his division within our company, his contribution to the overall leadership of our company, and his leadership of the sales and marketing function of our company in North America. In addition, Mr. Larocque contributed substantially to Share the Magic, our charitable fundraising efforts.

Executive Vice President and President of Concentrix Corporation. Christopher Caldwell served as our Executive Vice President and President of Concentrix Corporation, our global business process outsourcing division, prior to the Spin-off, and served in this capacity since February 2014. He previously served as President of Concentrix Corporation from June 2012 to February 2014, Senior Vice President and General Manager of Concentrix Corporation from March 2007 until June 2012, and Senior Vice President, Global Business Development from March 2007 until June 2012. Mr. Caldwell joined SYNNEX in 2004 as Vice President, Emerging Business. Mr. Caldwell’s annual base salary was $575,000 in fiscal year 2020. Some of the primary factors affecting Mr. Caldwell’s compensation included, among other things, our performance toward our pre-established financial goals, the strong performance of his division within our company, his contribution to the overall leadership of our company, and his leadership of the Concentrix segment of our company through the Spin-off.

Risk Assessment of Our Compensation Program 

Consistent with SEC disclosure requirements, we have assessed our compensation programs and have concluded that our compensation policies and practices do not create risks that are reasonably likely to have a material adverse effect on our company. The risk assessment process included a review of program policies and practices; program analysis to identify risk and risk control related to the programs; and determinations as to the sufficiency of risk identification, the balance of potential risk to potential reward, risk control and the support of the program and their risks to our company strategy. Although we reviewed all compensation programs, we focused primarily on the programs with variability of payout, with the ability of an executive officer to directly affect payout and the controls on executive officer action and payout. By way of examples, we reviewed our compensation programs for certain design features that have been identified by experts as having the potential to encourage excessive risk-taking, including:

 

too much focus on equity;

 

compensation mix overly weighted toward annual incentives;

 

highly leveraged payout curve and uncapped payouts;

 

unreasonable goals or thresholds; and

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steep payout cliffs at certain performance level that may encourage short-term business decisions to meet payout thresholds.

We are satisfied that these potential pitfalls have been avoided or mitigated. We continue to monitor our compensation programs and reserve the right to adjust them as we judge necessary to avoid creating undue risk.

In addition, we have internal controls over financial reporting and the measurement and calculation of compensation goals, and other financial, operational, and compliance policies and practices that are designed to keep our compensation programs from being susceptible to manipulation by any employee, including our executive officers. Other risk-mitigating factors considered by the Compensation Committee include the following:

 

the use of different types of compensation that provide a balance of short-term and long-term incentives with fixed and variable components;

 

our minimum equity holding guidelines;

 

our clawback policy which, in the event of a restatement of our financial results allows the Compensation Committee to seek to recover or cancel Management Incentive Plan bonuses;

 

our clawback provision in the 2020 Stock Incentive Plan that subjects the annual equity grants and LTI awards to Company clawback or recoupment arrangements or policies;

 

our Insider Trading Policy prohibits our directors, officers, and all other associates from entering into hedging or monetization transactions with respect to our securities;

 

caps on performance-based awards to limit windfalls;

 

every executive officer must obtain permission from our Legal Department before the sale of any shares of our common stock, even during an open trading window;

 

our policy to limit our involvement in cashless stock option exercises by our directors and officers;

 

our prohibition of trading in our securities on a short-term basis, on margin, or in a short sale transaction;

 

our policy against buying or selling puts or calls on our common stock;

 

our Code of Ethical Business Conduct; and

 

the Compensation Committee’s consideration of ethical behavior as integral in assessing the performance of all executive officers.

Ultimately, our incentive compensation is designed to reward executive officers for committing to and delivering goals that are intended to be challenging yet provide them a reasonable opportunity to reach the threshold amount, while requiring meaningful growth to reach the target level and substantial growth to reach the maximum level. The amount of growth required to reach the maximum level of compensation is developed within the context of the normal business planning cycle and, while difficult to achieve, is not viewed to be at such an aggressive level that it would induce our executive officers to take inappropriate risks that could threaten our financial and operating stability.

Tax Deductibility Considerations

 

Section 162(m) of the Code, as amended by the Tax Cuts and Jobs Act of 2017, generally disallows a deduction for federal tax purposes to any publicly traded corporation for any remuneration in excess of $1,000,000

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paid in any taxable year to its chief executive officer, chief financial officer and up to three other executive officers who are among our five most highly compensated executive officers.  While we consider the deductibility of awards in determining executive compensation, we also reserve the Compensation Committee’s flexibility to provide one or more covered executive officers with the opportunity to earn compensation that is nondeductible under Section 162(m) when the Compensation Committee believes that such compensation is appropriate to attract and retain executive talent.

Compensation Committee

The Compensation Committee has overall responsibility for our executive compensation policies as provided in a written charter adopted by the Board. The Compensation Committee is empowered to review and approve the annual compensation and compensation procedures for our executive officers. The Compensation Committee does not delegate any of its functions to others in setting compensation.

Compensation Consultant and Peer Group Analysis.  To assist in this process, the Compensation Committee retained the services of Compensia, Inc. as its compensation consultant during fiscal year 2020. Compensia reported directly to the Compensation Committee and the Compensation Committee directly approved the Compensia fees. Management had no role in the selection of the compensation consultant. The Compensation Committee retained the services of Compensia to outline executive compensation trends and developments, review and analyze SYNNEX’ executive compensation philosophy and programs, and provide summary of findings and considerations for use in fiscal year 2020. Neither SYNNEX nor the Compensation Committee engaged any compensation consultants during fiscal year 2020 whose fees exceeded $120,000. The Compensation Committee believes that the Compensia advice was independent of management, and Compensia has certified the same in writing, and benefited our company and stockholders. In reaching this conclusion, the Compensation Committee considered all factors relevant to Compensia’s independence from management, including factors suggested by the New York Stock Exchange in its rules related to compensation advisor independence.

Compensia provided the Compensation Committee with a review of the overall compensation climate in the United States, best practices, and trends specific to our industry. Compensia provided analyses of base salaries, bonuses, long-term incentives and benefit practices of comparable peer companies. Compensia’s work did not raise any conflict of interest.

The following comparable technology distribution, electronic manufacturing services, data processing and outsourced services, and IT consulting and other services peer companies were used in our competitive benchmarking for fiscal 2020 executive compensation:

Anixter International, Inc.

Arrow Electronics, Inc.

Avnet, Inc.

CDW Corporation

CGI Group, Inc.

Cognizant Technology Solutions Corporation

Conduent Incorporated

Henry Schein, Inc.

Insight Enterprises, Inc.

Jabil Inc.

Sanmina Corporation

ScanSource, Inc.

Sykes Enterprises, Incorporated

Tech Data Corporation

TeleTech Holdings, Inc.

 

Due to the Spin-off and the above inclusion of data processing and outsourced services, and IT consulting and other services companies, the Compensation Committee has been re-evaluating the peer companies to use as part of its competitive benchmarking for fiscal 2021 executive compensation.

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In addition to talking to members of the Compensation Committee, Compensia also contacted certain of our executive officers and other associates in our human resources department to obtain historical data and insight into previous compensation practices. The Compensation Committee took information provided by Compensia into consideration when setting executive compensation for fiscal years 2018, 2019 and 2020.

Tally Sheets and the Role of President and Chief Executive Officer.  In fiscal year 2020, the Compensation Committee continued the practice of reviewing the total remuneration of the executive officers using summary tables, or tally sheets. These tally sheets allowed the Compensation Committee to undertake a comprehensive review across all forms of compensation, and to understand the effect that changing profit and stock price scenarios could have on such remuneration forms.

Our President and Chief Executive Officer also made recommendations to the Compensation Committee as to the compensation of the other named executive officers. The Compensation Committee may accept or adjust such recommendations for these officers. However, in general, the Compensation Committee considered the recommendations of our President and Chief Executive Officer, the named executive officer’s role, responsibilities and performance during the past year, and the amount of compensation paid to named executive officers in similar positions at comparable companies. These recommendations were considered in relation to annual performance reviews and played an important role in the compensation determinations by the Compensation Committee. For Mr. Polk, the Compensation Committee solely determines the compensation of the President and Chief Executive Officer based on a performance review and competitive benchmarking provided by Compensia.

In general, we believe that the current executive compensation program meets the objectives of rewarding executive officers for measurable results in meeting and exceeding goals.

 


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Compensation Committee Report

The following report of the Compensation Committee does not constitute soliciting material and shall not be deemed filed or incorporated by reference into any other filing by SYNNEX under the Securities Act of 1933 or the Securities Exchange Act of 1934.

 

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with SYNNEX’ management. Based on this review and these discussions, the Compensation Committee recommended to the Board of Directors of SYNNEX that the Compensation Discussion and Analysis be included in SYNNEX’ proxy statement on Schedule 14A and incorporated by reference into its Annual Report on Form 10-K for the fiscal year ended November 30, 2020.

Respectfully submitted on February 1, 2021 by the members of the Compensation Committee of the Board of Directors:

 

Mr. Gregory Quesnel, Chair

Mr. Fred Breidenbach

Mr. Hau Lee

Mr. Thomas Wurster

Mr. Duane Zitzner

 


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2020 Summary Compensation Table

 

The following table sets forth compensation for services rendered in all capacities to us for the three fiscal years ended November 30, 2018, 2019, and 2020 for our President and Chief Executive Officer, Chief Financial Officer and the three other most highly compensated executive officers as of November 30, 2020 whose total compensation for fiscal year ended November 30, 2020 exceeded $100,000, whom we refer to in this Proxy Statement as the named executive officers

Name & Principal Position

 

Year

 

Salary

($)(1)

 

 

Bonus ($)

 

 

Stock

Awards

($)(2)(3)

 

 

Option

Awards

($)(2)

 

 

Non-Equity Incentive Plan Compensation ($)(4)

 

 

All Other Compensation ($)(5)

 

 

Total ($)

 

Dennis Polk

 

2020

 

 

725,000

 

 

 

 

 

 

 

 

 

 

 

 

2,189,269

 

 

 

9,860

 

 

 

2,924,129

 

President, Chief

 

2019

 

 

766,827

 

 

 

 

 

 

1,496,740

 

 

 

1,549,983

 

 

 

2,358,112

 

 

 

31,333

 

 

 

6,202,995

 

Executive Officer

 

2018

 

 

642,087

 

 

 

 

 

 

1,642,430

 

 

 

2,599,982

 

 

 

2,268,127

 

 

 

21,671

 

 

 

7,174,297

 

and Director (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marshall Witt

 

2020

 

 

500,000

 

 

 

 

 

 

 

 

 

 

 

 

611,247

 

 

 

4,535

 

 

 

1,115,782

 

Chief Financial Officer

 

2019

 

 

500,000

 

 

 

 

 

 

468,992

 

 

 

349,967

 

 

 

603,957

 

 

 

13,258

 

 

 

1,936,174

 

 

 

2018

 

 

482,417

 

 

 

 

 

 

406,500

 

 

 

349,979

 

 

 

517,594

 

 

 

12,390

 

 

 

1,768,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Michael Urban

 

2020

 

 

550,000

 

 

 

 

 

 

 

 

 

 

 

 

1,376,272

 

 

 

6,422

 

 

 

1,932,694

 

President, Worldwide

 

2019

 

 

446,346

 

 

 

 

 

 

1,563,319

 

 

 

999,965

 

 

 

1,008,000

 

 

 

10,744

 

 

 

4,028,374

 

Technology Solutions

Distribution (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peter Larocque

 

2020

 

 

540,000

 

 

 

 

 

 

 

 

 

 

 

 

1,351,249

 

 

 

5,912

 

 

 

1,897,161

 

President, North America

 

2019

 

 

568,932

 

 

 

 

 

 

820,046

 

 

 

464,982

 

 

 

1,568,963

 

 

 

18,435

 

 

 

3,441,358

 

Technology Solutions

 

2018

 

 

508,385

 

 

 

 

 

 

676,402

 

 

 

464,979

 

 

 

1,020,913

 

 

 

15,925

 

 

 

2,686,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Christopher Caldwell

 

2020

 

 

575,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,997

 

 

 

581,997

 

Executive Vice President

 

2019

 

 

608,173

 

 

 

 

 

 

4,007,871

 

 

 

999,996

 

 

 

1,307,543

 

 

 

20,900