DEF 14A 1 d109412ddef14a.htm DEF 14A DEF 14A
Table of Contents

 

 

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 under §240.14a-12

WABASH NATIONAL CORPORATION

(Name of Registrant as Specified in Its Charter)

 

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

Payment of Filing Fee (Check the appropriate box):

  No fee required.
  Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
  (1)  

Title of each class of securities to which transaction applies:

 

     

  (2)  

Aggregate number of securities to which transaction applies:

 

     

  (3)  

Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):

 

     

  (4)  

Proposed maximum aggregate value of transaction:

 

     

  (5)  

Total fee paid:

 

     

  Fee paid previously with preliminary materials.
  Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing.
  (1)  

Amount Previously Paid:

 

     

  (2)  

Form, Schedule or Registration Statement No.:

 

     

  (3)  

Filing Party:

 

     

  (4)  

Date Filed:

 

     

 

 

 


Table of Contents

LOGO

Letter from the President and Chief Executive Officer

Dear Fellow Stockholders,

The year 2020 will be remembered as an unprecedented period as the business world navigated through a global health crisis, softening markets, supply chain disruptions and global economic uncertainty. We learn the most about ourselves and our organizations from the challenges we encounter, and it is through these challenges that we prove what we are capable of doing. With that in mind, I couldn’t be prouder of how the Wabash National team responded to the challenges of 2020.

In addition to overcoming obstacles brought about by the pandemic, we remained focused on our purpose of Changing How the World Reaches You by executing our first to final mile strategy and maintaining our resolve to structurally realign and reorganize our business as One Wabash. Together we are creating a new environment where we are: 1) prioritizing ease of doing business for our customers; 2) creating a growing portfolio of innovative engineered solutions that span from first to final mile; and 3) designing a culture that continually seeks to improve process via the Wabash Management System to create value for our customers, employees and stockholders.

2020 was a test of our human resiliency, and it was also a test of the strength of our product portfolio and the processes we’ve embedded within our business. Our process discipline enabled the company to absorb a notable reduction in volume while minimizing the impact to operating income, resulting in strength of financial performance never before accomplished during a significantly challenging environment in the history of Wabash National. We aim to continue this improvement as we leverage our customer-centric organizational structure along with opportunities for strategic growth.

Our new organizational structure based on value streams and customer centricity is yielding early and significant wins of reducing friction for customers and is allowing us to think in new and interesting ways. Our purpose, vision and mission provide common direction throughout our organization, and the growth of a values-based culture that is also shaped by our Wabash Management System helps us act with renewed strategic purpose.

Part of our new culture and strategic purpose anchors on corporate responsibility and a commitment to environmental, social and governance (ESG) principles. Whether it’s innovating with environmental impact in mind, ensuring diversity of backgrounds and viewpoints on our board of directors, or simply standing up for what we believe is right on social issues, I believe our ESG focus sets Wabash National apart and uniquely positions us as a desirable supplier to customers who value ESG principles. We were pleased to release our first sustainability report in December 2020 as evidence of our commitment to these principles.

There is something special happening at Wabash National, and we look forward to sharing the journey with you. I am ever grateful for the hard work and dedication of our people; the strategic oversight of our board of directors; the trust and support of our customers and suppliers; and the confidence of you, our stockholders, in Wabash National and our long-term success.

Sincerely,

 

 

LOGO

Brent L. Yeagy

President and Chief Executive Officer


Table of Contents

 

 

WABASH NATIONAL CORPORATION

1000 Sagamore Parkway South

Lafayette, Indiana 47905

Notice of Annual Meeting of Stockholders

 

 

 

 

LOGO             LOGO      LOGO      LOGO
     

When:

 

Tuesday, May 11, 2021,

at 10:00 a.m. Eastern time

 

Items of Business:

 

3 proposals as listed

below

 

Date of Mailing:

 

The date of mailing of

this Proxy Statement or

Notice of Internet

Availability is on or

about March 29, 2021.

 

Who Can Vote:

 

Stockholders of

each share of common

stock at the close of

business on

March 12, 2021.

 

Attending the Meeting:

 

As a result of the ongoing public health and travel concerns related to coronavirus or COVID-19, we have made alternative arrangements and the 2021 Annual Meeting of Stockholders will be held in a virtual meeting (via live audio webcast) format only. You will not be able to attend the 2021 Annual Meeting of Stockholders physically. You or your proxyholder may participate, vote, and examine our stockholder list at the 2021 Annual Meeting of Stockholders by visiting www.virtualshareholder
meeting.com/WNC2021
and using your control number found on your proxy card.

Items of Business:

1.

To elect eight members of the Board of Directors from the nominees named in the accompanying proxy statement;

 

2.

To approve, on an advisory basis, the compensation of our named executive officers;

 

3.

To ratify the appointment of Ernst & Young LLP as Wabash National Corporation’s independent registered public accounting firm for the year ending December 31, 2021; and

To consider any other matters that properly come before the Annual Meeting or any adjournment or postponement thereof. Management is currently not aware of any other business to come before the Annual Meeting.

Each outstanding share of Wabash National Corporation (NYSE: WNC) Common Stock entitles the holder of record at the close of business on March 12, 2021 to receive notice of, and to vote at, the Annual Meeting or any adjournment or postponement of the Annual Meeting. Shares of our Common Stock can be voted at the Annual Meeting only if the holder is present by virtual presence online or by valid proxy. Management cordially invites you to attend the Annual Meeting by virtual presence online.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE STOCKHOLDERS MEETING TO BE HELD ON MAY 11, 2021:

The Proxy Statement, Annual Report and the means to vote by internet are available at http://www.proxyvote.com.

By Order of the Board of Directors,

 

 

LOGO

M. Kristin Glazner

Senior Vice President and General Counsel, Corporate Secretary, Chief Human Resources Officer

March 29, 2021

Whether or not you expect to attend by virtual presence online, we urge you to vote your shares at your earliest convenience. This will ensure the presence of a quorum at the Annual Meeting. Promptly voting your shares by signing, dating and returning the proxy card mailed with your notice, or by voting via the internet or by telephone, will save us the expense and extra work of additional solicitation. An addressed envelope for which no postage is required if mailed in the United States is enclosed with your proxy card. Submitting your proxy now will not prevent you from voting your shares at the meeting by virtual presence online if you desire to do so, as your proxy is revocable at your option. Your vote is important, so please act today.


Table of Contents

 

 

2021 Annual Meeting of Stockholders on May 11, 2021

Proxy Statement

Table of Contents

 

 

 

Proxy Statement Summary      1  
Information About the Annual Meeting, Proxy Materials and Voting      13  
Proposal 1 – Election of Directors      17  

Information on Directors Standing for Election

     17  
Corporate Governance      24  

Governance Guidelines & Code of Business Conduct & Ethics

     24  

Board Structure and its Role in Risk Oversight

     24  

Director Independence

     24  

Independent Chairman

     24  

Director Refreshment

     24  

Director Attendance

     25  

Board’s Role in Risk Oversight

     25  

Committees of the Board

     26  

Nominating and Corporate Governance Committee

     26  

Compensation Committee

     27  

Audit Committee

     27  

Related Persons Transactions Policy

     28  

Nomination of Director Candidates

     28  

Qualifications of Director Candidates

     28  

Director Nomination Process

     29  

Director Compensation

     30  
Compensation Discussion and Analysis      33  

Compensation Highlights

     33  

Compensation Actions Taken in Connection With COVID-19

     33  

Compensation Best Practices

     34  

Summary of Compensation Elements

     35  

Our 2020 Say-on-Pay Vote

     35  

Compensation Objectives and Philosophy

     36  

Compensation Methodology and Process

     37  

The Role of Independent Compensation Consultant

     37  

Peer Group Analysis and Compensation Market Data

     37  

Compensation Program Elements

     39  

Base Salary

     39  

Short-Term Incentive Plan

     40  

Long-Term Incentive Plan

     41  

Perquisites

     45  

Retirement and Deferred Compensation Benefits

     45  

Severance and Change in Control Benefits

     46  

Executive Stock Ownership Guidelines

     47  

Insider Trading Policy and Anti-Hedging Rules

     47  

Compensation Risk Assessment

     48  
Compensation Committee Report      49  
Executive Compensation Tables      50  

Summary Compensation Table for the Year Ended December 31, 2020

     50  

Grants of Plan-Based Awards for the Year Ended December 31, 2020

     52  

Outstanding Equity Awards at Fiscal Year-End December  31, 2020

     53  

Option Exercises and Stock Vested During 2020

     55  

Non-Qualified Deferred Compensation

     55  

Potential Payments on Termination or Change in Control

     56  

Potential Payments on Termination or Change in Control – Payment and Benefit Estimates

     59  

Pay Ratio Disclosure

     60  
Equity Compensation Plan Information      62  
Proposal 2 – Advisory Vote on the Compensation of Our Named Executive Officers      63  
Proposal 3 – Ratification of Appointment of Independent Registered Public Accounting Firm      64  

Independent Registered Public Accounting Firm

     64  

Principal Accounting Fees and Services

     64  

Pre-Approval Policy for Audit and Non-Audit Fees

     65  

Audit Committee Report

     65  
Beneficial Ownership Information      66  

Beneficial Ownership of Common Stock

     66  

Delinquent Section 16(a) Reports

     67  
General Information      68  

Availability of Certain Documents

     68  

Communications with the Board of Directors

     68  

Stockholder Proposals and Nominations

     68  

Householding of Proxy Materials

     69  
 

 

 

 

WABASH NATIONAL CORPORATION    2021 Proxy Statement   i

 


Table of Contents
 

 

Proxy Statement Summary

 

 

To assist you in reviewing the proposals that may be acted upon at our 2021 Annual Meeting, the summary below highlights certain information that is contained elsewhere in this Proxy Statement. This summary does not contain all of the information that you should consider, and you should read the entire Proxy Statement carefully before voting. Page references are supplied to help you find further information in this Proxy Statement.

Annual Meeting of Stockholders

 

Date and Time:

   10:00 a.m. Eastern time on Tuesday, May 11, 2021

Virtual Meeting Site:

   www.virtualshareholdermeeting.com/WNC2021

Record Date:

   March 12, 2021

Voting:

   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.

Company Overview

Wabash National Corporation, which we refer to herein as “Wabash,” “Wabash National,” the “Company,” “us,” “we,” or “our,” is Changing How the World Reaches You. Founded in 1985 in Lafayette, Indiana, as a dry van trailer manufacturer, today we are an innovation leader of engineered solutions for the transportation, logistics and distribution industries. Our mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from the first to final mile.

To that end, we design and manufacture a diverse range of products, including dry freight and refrigerated trailers, platform trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade and pharmaceutical equipment. We have achieved this diversification through acquisitions, organic growth and product innovation.

We believe our position as a leader in our key industries is the result of longstanding relationships with our core customers, our demonstrated ability to attract new customers, our broad and innovative product lines, our technological leadership, and our extensive distribution and service network. More importantly, we believe our leadership position is indicative of the values and leadership principles that guide our actions.

People, Purpose and Performance Drive Our Business

Our Purpose is to change how the world reaches you.

Our Vision is to be the innovation leader of engineered solutions for the transportation, logistics and distribution industries.

Our Mission is to enable our customers to succeed with breakthrough ideas and solutions that help them move everything from first to final mile.

Our Values are the qualities that govern our critical leadership behaviors and accelerate our progress.

 

 

Be Curious: We will make bold choices and encourage creativity, collaboration and risk-taking to turn breakthrough ideas into reality.

 

 

Have a Growth Mindset: We will be resilient and capable of the change required to succeed in a world that does not stand still.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   1

 


Table of Contents

Proxy Statement Summary

 

 

Create Remarkable Teams: We will create a workplace culture that allows individuals to be their best in order to retain and attract talent from diverse industries, geographies and backgrounds.

Our Leadership Principles are the behaviors that provide definition to our actions and bring our values to life.

 

 

Embrace Diversity and Inclusion: We solicit and respect the input of others, celebrate our differences and strive for transparency and inclusiveness.

 

 

Seek to Listen: We listen to our customers, partners, and each other to reach the best solutions and make the strongest decisions.

 

 

Always Learn: To model a growth mindset, we continue learning through every stage of our careers. We do not quit and we are not satisfied with the status quo.

 

 

Be Authentic: Employees who thrive at Wabash National are honest, have incredible energy and demonstrate grit in everything they do.

 

 

Win Together: We collaborate, seek alignment and excel at cross-group communication to succeed as one team and One Wabash.

Corporate Responsibility and Governance Highlights

At Wabash National, it’s our focus on people, purpose and performance that drives us to do better so we can continue Changing How the World Reaches You. We believe that our leadership principles, as set forth above, create a workplace culture in which our colleagues can share their talents and perspectives and are empowered to make a difference for our customers, for each other, for our communities and for our environment. Wabash National is committed to growing its business in a sustainable and socially responsible manner. We support the passions and interests of our employees and empower them to be a positive influence in the world. We are proud to provide many opportunities to be good neighbors by volunteering time and talent to support the causes that matter most to our employees. We publicly disclosed substantial information about our business in our 2019 Sustainability Report, available on the Governance/Sustainability page of the Investor Relations section of our website at ir.wabashnational.com, which details our commitments, programs and progress on a variety of topics including our products and supply chain, environmental impact, diversity and inclusion, workplace safety and governance. We have mapped our disclosures on environmental, social and governance topics to metrics outlined by the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD) in our SASB and TCFD Indices, included in our 2019 Sustainability Report. The 2019 Sustainability Report is not incorporated herein by reference or otherwise. Below are some of the highlights of our focus and commitment:

 

Board Diversity

 

 

LOGO

 

Diverse Executive Team

 

 

LOGO

 

 

 

2   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Proxy Statement Summary

 

   

 

LOGO

 

Diversity and Inclusion. We actively pursue and embrace diversity and inclusion throughout our entire organization.

 

  Our Nominating and Corporate Governance Committee actively prioritizes diversity in searches for new director candidates.

 

  We have a diverse Board: 2 out of 8 of our directors are female and 1 is African-American.

 

  We focus on preventing pay imbalances among genders, including proactive adjustments to pay, titles and/or benefits to prevent gender pay gaps.

 

  We work to promote diversity through our supply chain. Before we add any significant vendor to our supply chain, we complete a thorough pre-screen, including an assessment form that ensures that the vendor’s actions and activities around environmental practices, human rights and general ethics align with our cultural and values.

 

LOGO

 

Community Involvement. We succeed as one team and One Wabash, including through our devotion to philanthropy, volunteerism, charitable giving and community involvement.

 

  We donate time, needed materials and financial resources to support the communities where we live and work.

 

  We believe that enriching the lives of those around us is a powerful investment in the future, including through our partnerships with, among many others, United Way, Fisher House Foundation, the Salvation Army, the Wabash Center and Special Olympics.

 

  In 2020, we donated more than $390,000 through corporate gifts and employee donations.

 

  As a way to support charitable giving, we have also adopted a Day of Giving Policy, whereby full-time hourly and salaried employees are provided with one day of paid time each year to participate in that employee’s chosen volunteer program.

 

LOGO

 

Environmental Sustainability. We are resilient and capable of the change required to succeed in a world that does not stand still, including with respect to environmental sustainability and climate change.

 

  We were the first semi-trailer manufacturer in North America to earn an ISO 14001 certification, which demonstrates our focus on minimizing our environmental footprint and promoting responsible manufacturing. Our environmental stewardship registrations and certifications include:

 

  ISO 14001:2004 and ISO 14001:2015 Registrations for Environmental Management

 

  Cadiz, KY (since 2015)

 

  Harrison, AR (since 2017)

 

  Lafayette, IN (since 2005)

 

  San José Iturbide, Guanajuato, Mexico (since 2015)

 

  Federal Clean Industry Certification (2017, San José Iturbide, Guanajuato, Mexico)

 

  Our products are designed to be fuel efficient and reduce emissions by reducing weight, improving aerodynamics, and improving thermal efficiency.

 

  In 2019, we introduced our DuraPlate® Cell Core technology, which delivers a 300-pound-lighter weight trailer compared to traditional designs, without compromising durability.

 

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   3

 


Table of Contents

Proxy Statement Summary

 

 

 

 

 

 

  Our Molded Structural Composite (MSC) Technology improves thermal efficiency by up to 30% and reduces weight by up to 20% compared to traditional designs.

 

  We configure and install telematics systems, providing real-time monitoring and analysis of performance and environmental data and allowing drivers to increase performance, reduce maintenance and prolong equipment life.

 

  We have a product line that reduces aluminum content, which ultimately reduces water needed to produce the aluminum.

 

  We have reduced air emissions from our painting operations by reformulating and reducing the volatile organic compound content in our coatings.

 

  We have produced a solar-powered, zero-emissions refrigerated trailer, which was first shown at the American Trucking Associations’ Technology and Maintenance Council annual meeting in February 2020.

 

  By sourcing post-consumer resin to manufacture our DuraPlate® panels, we have diverted more than 1 billion plastic bottles from landfills.

 

  All Wabash facilities use energy-efficient lighting.

 

  Our manufacturing operations use pulse welders, which produce the same high-quality result as traditional welders but require only 1/3rd of the energy to run.

 

  In 2019, Wabash’s recycling programs and use of recycled materials saved nearly 141,000 cubic yards of landfill space, 152,000 million kilowatt-hours of electricity, 23,000 mature trees and 73,000 metric tons of greenhouse gas emissions.

 

  We help customers extend the useful life of their equipment with remanufacturing and repair services, limiting the amount of raw materials needed to produce new machinery.

 

  We leverage partnerships with government entities and industry associations to develop efficient, effective and practical solutions to problems facing the manufacturing and transportation segments. Affiliations include:

 

  Government and Regulatory Bodies:

 

  California Air Resource Board (CARB)

 

  U.S. Department of Transportation (DOT)

 

  Environmental Protection Agency (EPA)

 

  National Highway Transportation Safety Administration (NHTSA)

 

  Transport Canada

 

  Transportation Associations:

 

  American Trucking Associations (ATA)

 

  ATA’s Technology and Maintenance Council (TMC)

 

  Cargo Tank Risk Management Committee (CTRMC)

 

  National Tank Truck Carriers (NTTC)

 

  National Trailer Dealers Association (NTDA)

 

 

 

 

4   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Proxy Statement Summary

 

    

 

 

  Truck Trailer Manufacturers Association (TTMA)

 

  Manufacturing Associations:

 

  Indiana Manufacturers Association (IMA)

 

  National Association of Manufacturers (NAM)

 

  Composites Application Group (CAG)

 

  We published our 2019 Sustainability Report in December 2020.

 

LOGO

 

Education. To model a growth mindset, we continue learning through every stage of our careers, and we also believe in supporting the next generation of leaders who will continue to change how the world reaches you.

  

 

  Full-time Wabash National employees can pursue courses or degree programs at an accredited college or university without added financial burden by using the Wabash National Tuition Reimbursement Program, which reimburses approved fees and costs (including tuition, books and lab fees) for undergraduate and graduate degree studies.

 

  We offer career development and advancement opportunities. Employees are encouraged to continue learning and improving skills at all stages of their careers.

 

  We support our youth through program funding, training programs, internships and co-ops.

 

  We also sponsor youth clubs in our communities, including robotics clubs, STEM programs and the Purdue University’s Women in Engineering Program.

 

  We have developed an annual scholarship program, whereby we award scholarships to certain dependents of Wabash National employees to help them pursue their academic goals. In 2019, we awarded 16 high school graduates with scholarships that amounted to a total of $120,000.

 

LOGO

 

Ethics and Compliance. Employees who thrive at Wabash National are honest, have incredible energy, and demonstrate grit in everything they do. We also work to hold our entire supply chain accountable.

  

 

  We maintain a Code of Business Conduct and Ethics that lays the foundation for our ethics and compliance program and defines our overall management approach to human rights, anti-corruption, the environment, governance and social matters.

 

  Our Employee Handbook is founded on and incorporates the values, policies and rules set forth in our Code of Business Conduct and Ethics. All employees and directors are expected to take the values, policies, and rules set forth and apply them to all situations that arise in the course and scope of employment.

 

  We maintain an AlertLine whereby employees are able to report violations of Wabash’s Code of Business Conduct and Ethics.

 

  Our Code of Business Conduct and Ethics also provides key directions to our suppliers, vendors, dealers and agents to abide by the same ethical and legal standards applicable to Wabash National employees, including:

 

  Labor and human rights, including child labor and human trafficking

 

  Restrictions against corruption, bribery and extortion

 

  Health and safety activities

 

  Environmental accountability

 

  We require all facilities to practice equal opportunity employment and have zero tolerance for harassment, racism or bigotry of any kind. Employees, contract workers, visitors and other non-employees are

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   5

 


Table of Contents

Proxy Statement Summary

 

   

encouraged to immediately report harassment or any ethics or compliance violations committed by anyone.

 

  Our Conflict Minerals Policy is in place to prevent the use of minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or in neighboring countries.

 

  We ask our suppliers to demonstrate that they source “conflict minerals” from outside the conflict region and/or can certify that conflict minerals sourced from within the conflict region are “conflict free.”

 

LOGO

 

Awards and Recognition. Our efforts to make bold choices and encourage creativity, collaboration, and risk-taking to turn breakthrough ideas into reality have been recognized throughout the years.

 

 

  Safety and Environmental Awards:

 

  2017 Kentucky Governor’s Safety and Health Award (Cadiz, KY)

 

  Truck Trailer Manufacturers Association Plant Safety Awards:

 

  2019: New Lisbon, WI

 

  2018: San José Iturbide, Guanajuato, Mexico

 

  2016: New Lisbon, WI, and San José Iturbide, Guanajuato, Mexico

 

  2015: New Lisbon, WI

 

  2013: San José Iturbide, Guanajuato, Mexico

 

  Product Awards:

 

  SSAB Swedish Steel Prize Finalist (RIG-16 Rear Impact Guard, 2017)

 

  IIHS Toughguard Award (RIG-16 Rear Impact Guard, 2017)

 

  Heavy Duty Trucking Top 20 Products (Cold Chain and Final Mile equipment, 2016)

 

  Corporate Awards:

 

  IndustryWeek 50 Best U.S. Manufacturers (2018, 2017, 2016, 2015, 2013, 2006)

 

  INVESTIndiana Equity Conference Top 5 Indiana Public Company (2016)

 

  Supplier Diversity Development Coalition of Greater Lafayette Golden Handshake Award for Diversity and Excellence (2016)

 

  Forbes 100 Most Trustworthy Companies in America (2015)

 

  Indiana Employer Support of the Guard and Reserve Above and Beyond Award (2014)

 

Environmental, Health and Safety

 

 

 

  Reflected in our corporate Environmental, Health and Safety Policy, we maintain high standards for manufacturing safety. We commit to meet or exceed all applicable environmental, health, and safety standards, regulations and other requirements.

 

  The Operations Management at each of our facilities is directly responsible for implementing this policy and ensuring full compliance with all environmental, health, and safety laws, internal standards and requirements applicable within their respective organizations.

 

  We commit to manage all of our business activities in a responsible manner with respect for the environment through pollution prevention and with our highest priority being the health and safety of our employees.

 

 

 

 

6   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Proxy Statement Summary

 

   

 

  We continually focus on reducing the severity and frequency of workplace injuries to create a safe environment for our employees.

 

  We believe that all injuries and occupational illnesses, as well as environmental incidents, are preventable. In support of this, all employees are expected to perform their work in such a manner as to not jeopardize the environment or the safety and health of themselves and their fellow workers.

 

  We work to ensure that our products, processes, services, and facilities minimize the generation of waste, pollution and adverse impact on the environment.

 

  We work on innovations to protect the people who operate our equipment and partner with others to promote higher standards in transportation and manufacturing by sharing best practices and ideas.

 

  We also demonstrate a commitment to highway safety in our products. Our Upper ID/Aux Stoplights enhance collision avoidance by making trailer braking more visible to motorists and our Rear Underride Guard System—RIG-16 surpasses U.S. and Canadian standards and prevents underride in multiple offset impact scenarios.

 

Director Independence

 

 

  7 out of 8 director nominees are independent.

 

  3 fully independent Board committees: Nominating and Corporate Governance Committee, Compensation Committee and Audit Committee.

 

Board Accountability

 

 

  All directors are elected annually via majority voting standard.

 

  Stockholders may amend our bylaws.

 

  Our Nominating and Corporate Governance Committee is evolving to undertake responsibility for discussing and advising the management team with regard to the development of strategies, policies and practices expected to help the Company with ESG oversight, including the areas of energy consumption, climate change, greenhouse gas and other criteria relevant to our business practices.

 

Board Leadership

 

 

  We undertake annual assessment and determination of Board leadership structure.

 

  We have an independent Chairperson who has a strong role and significant governance duties, including presiding over all executive sessions of independent directors.

 

Stockholder Engagement

 

 

  We routinely meet with stockholders for conversations focused on a variety of topics, including governance, Company strategy, growth, risk management and ESG issues.

 

  During 2020, we held multiple discussions with stockholders.

 

  Our head of investment stewardship attended Blackrock’s director day.

 

Board Evaluation and Effectiveness

 

 

  Annual Board and Committee self-assessments.

 

  Annual two-way feedback and evaluation sessions with each director.

 

  Annual independent director evaluation of the Chairperson and CEO.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   7

 


Table of Contents

Proxy Statement Summary

 

 

Board Risk Oversight

 

 

  The Board and its Committees exercise robust oversight of the Company’s enterprise risk management system.

 

Board Refreshment and Diversity

 

 

  During 2019, we added 2 new directors, and we appointed a new independent Chairperson following the 2020 Annual Meeting.

 

  Board members represent diverse perspectives, including 2 female directors and 1 African-American director.

 

  We have a specified director retirement age.

 

Director Engagement

 

 

  All of our directors attended 75% or more of the aggregate number of meetings of our Board and the Committees on which they served.

 

  We have limits on director/CEO membership on other public company boards.

 

Succession Planning

 

 

  CEO and leadership succession planning is one of our Board’s most important responsibilities. At least once a year, our Board dedicates itself to examining the succession plans for our complete leadership team and the board.

Our Management Approach

 

 

LOGO

Our Wabash Management System (“WMS”) is for the purpose of achieving our strategic objectives. By codifying what makes our Company great, the WMS drives focus on the interconnected processes that are critical for success across our business. WMS is based on forward planning and continuous capability evaluation as we simultaneously drive execution and breakthrough performance. WMS requires everyone to be an active contributor to our enterprise-wide lean efforts and enables growth through innovation and industry leading customer satisfaction and alliances.

Our WMS principles underpin an ongoing improvement cycle that includes Strategic Planning and Deployment, Kaizen and Daily Management. Through the WMS, we create scalable and sustainable processes that:

 

 

Drive organic growth within existing and new businesses

 

 

Provide a means to acquire/obtain and integrate new businesses and capabilities

 

 

Create and exploit new markets

 

 

Allow for breakthrough improvement within key areas of the business

 

 

While delivering the daily execution of our established businesses

 

 

 

8   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Proxy Statement Summary

 

It is through this set of standards and thinking that we create a “One Wabash” approach to our customers, add new business capabilities, and enable profitable growth.

The One Wabash Strategic Approach to Serving Customers

Our One Wabash organizational transformation began during the first quarter of 2020 with the introduction of value streams. Our One Wabash organizational structure enables long-term growth for the Company with an intense focus on value streams, streamlined processes, product innovation, and a consistent, superior experience for all customers who seek our solutions in the transportation, logistics and distribution markets. The value streams leverage the power of our processes to close the cycle of customer needs and customer fulfillment.

We believe our One Wabash approach coupled with our Wabash Management System is uniquely designed to achieve breakthrough customer value. Our value streams align resources and processes on serving the customer, and our strategy is centered around our ability to scale core competencies by growing in and around core markets with known customers.

Voting Matters and Vote Recommendation (page 15)

The following table summarizes the proposals to be considered at the Annual Meeting and the Board’s voting recommendation with respect to each proposal.

 

PROPOSALS

   BOARD VOTE
RECOMMENDATION
   PAGE

Election of Directors

   FOR EACH NOMINEE    17

Advisory Vote on the Compensation of Our Named Executive Officers (“Say-on-Pay”)

   FOR    63

Ratification of Appointment of Independent Registered Public Accounting Firm

   FOR    64

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   9

 


Table of Contents

Proxy Statement Summary

 

Board Nominees (page 17)

The following table provides summary information about each director nominee, as of the Record Date.

 

NAME

   AGE    DIRECTOR
SINCE
   OCCUPATION   INDEPENDENT    OTHER
PUBLIC
BOARDS

Therese M. Bassett

   57    November 2019    Managing Director, NuVentures LLC   Yes    No

John G. Boss

   61    December 2017    Former President and Chief Executive Officer, Momentive Performance Materials Inc.   Yes    No

John E. Kunz

   56    March 2011    Senior Vice President and Chief Financial Officer, U.S. Concrete, Inc.   Yes    No

Larry J. Magee

   66    January 2005    President, Magee Ventures Group   Yes    No

Ann D. Murtlow

   60    February 2013    President and Chief Executive Officer, United Way of Central Indiana   Yes    Yes

Scott K. Sorensen

   59    May 2005   

Managing Director of Sorensen Capital, LLC

Former President and Chief Operating Officer, Ivanti Software

  Yes    No

Stuart A. Taylor II

   60    August 2019    Chief Executive Officer, The Taylor Group LLC   Yes    Yes

Brent L. Yeagy

   50    October 2016    President and Chief Executive Officer, Wabash National Corporation   No    No

 

 

 

10   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Proxy Statement Summary

 

The table below summarizes key qualifications, skills and attributes most relevant to the decision to nominate the candidates to serve on our Board. A mark indicates a specific area of focus or experience on which the Board relies most. The lack of a mark does not mean the director nominee does not possess that qualification or skill. Each director nominee biography in this proxy statement describes each nominee’s qualifications and relevant experience in more detail.

 

DIRECTORS

  Therese M.
Bassett
  John G.
(“Jack”)
Boss
  John E.
Kunz
  Larry J.
Magee
  Ann D.
Murtlow
  Scott K.
Sorensen
  Stuart A.
Taylor II
  Brent L.
Yeagy

Independent

                 

 

Logistics, Transportation and Distribution

   

 

   

 

     

 

   

 

   

 

   

 

 

Diverse Manufacturing

   

 

       

 

   

 

     

 

 

Supply Chain/Commodities Management

         

 

   

 

   

 

   

 

 

Materials Science or Engineering

   

 

     

 

   

 

     

 

   

 

 

Government/Regulatory

   

 

   

 

   

 

   

 

       

 

   

 

Qualified Financial Expert/Finance/Treasury

   

 

   

 

     

 

   

 

       

 

M&A

         

 

       

Global

         

 

     

 

   

 

   

 

Technology/IT/Cybersecurity

   

 

   

 

   

 

   

 

   

 

       

 

Marketing/Sales/Digital

   

 

     

 

     

 

   

 

   

 

   

 

Talent/Culture

       

 

       

 

   

 

 

Strategy Development

               

Named Executive Officer Compensation (Say-on-Pay) (page 63)

We are asking stockholders to vote to approve, on an advisory (non-binding) basis, the compensation of our named executive officers. The primary objectives and philosophy of our compensation programs are to (i) drive executive behaviors that maximize long-term stockholder value creation, (ii) attract and retain talented executive officers with the skills necessary to successfully manage and grow our business, and (iii) align the interests of our executive officers with those of our stockholders by rewarding them for strong Company performance. In support of these objectives, in 2020, we:

 

 

Weighted a significant portion of our executives’ compensation toward variable and performance-based compensation. Specifically, in 2020, approximately 80.6% of our CEO’s target direct compensation (consisting of base salary, annual cash incentives and long-term equity incentives) and, on average, 67.5% of our other named executive officers’ target direct compensation, was delivered in stock-based and cash-based incentive compensation through our short-term and long-term incentive plans.

 

 

Engaged an independent compensation consultant to conduct a market review of our compensation package to ensure it was competitive with our peers.

 

 

Encouraged our executives to be long-term stockholders through rigorous stock ownership guidelines and providing a significant portion of our NEOs compensation through equity awards.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   11

 


Table of Contents

Proxy Statement Summary

 

Independent Registered Public Accounting Firm (page 64)

We ask that our stockholders ratify the selection of Ernst & Young LLP as our independent registered public accountants for the year ending December 31, 2021.

Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to Be Held on May 11, 2021.

Our Annual Report and this Proxy Statement are available at www.proxyvote.com. To access our Annual Report and Proxy Statement, enter the control number referenced on your proxy card.

 

 

 

12   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents
 

 

Information About the Annual Meeting, Proxy Materials and  Voting

 

 

What is the Purpose of the Annual Meeting?

At the Annual Meeting, our management will report on our performance during 2020 and respond to questions from our stockholders. In addition, stockholders will act upon the matters outlined in the accompanying Notice of Annual Meeting of Stockholders, which include the following three proposals:

 

Proposal 1    To elect eight members of the Board of Directors.
Proposal 2    To hold an advisory vote on the compensation of our named executive officers.
Proposal 3    To ratify the appointment of Ernst & Young LLP as Wabash National Corporation’s independent registered public accounting firm for the year ending December 31, 2021.

Stockholders will also consider any other matters that properly come before the Annual Meeting or any adjournment or postponement thereof. Management is currently not aware of any other business to come before the Annual Meeting.

Stockholders may act on the proposals by voting a proxy or voting by virtual presence online at the Annual Meeting.

What is the purpose of the proxy materials?

We are providing these proxy materials in connection with the solicitation by our Board of Directors of proxies to be voted at the Annual Meeting and at any adjournments or postponements thereof. The proxy materials (including the Notice of Annual Meeting, this Proxy Statement, and our Annual Report on Form 10-K) include information that we are required to provide to you under the rules of the Securities and Exchange Commission (the “SEC”) and are designed to assist you in voting on the matters presented at the Annual Meeting. We first mailed the proxy materials to stockholders on or about March 29, 2021.

What is a proxy?

A proxy is your legal designation of another person to vote on your behalf. By voting your proxy, you are giving the persons named on the proxy card the authority to vote your shares in the manner you indicate on your proxy card.

Who is Entitled to Vote?

Only stockholders of record at the close of business on March 12, 2021 (the “Record Date”) are entitled to receive notice of the Annual Meeting and to vote the shares of common stock of the Company (the “Common Stock”) that they held on the Record Date at the Annual Meeting, or any postponement or adjournment of the Annual Meeting. As of the Record Date, we had 51,882,958 shares of Common Stock outstanding and entitled to vote. Each share of Common Stock entitles its holder to cast one vote on each matter to be voted upon.

What is the difference between a stockholder of record and a beneficial owner?

If your shares are registered directly in your name with our transfer agent, Equiniti Trust Company, you are a “stockholder of record.” If your shares are held in a stock brokerage account or by a bank or other custodian or nominee, you are considered the beneficial owner of shares held in “street name.” As a beneficial owner, you have the right to direct your broker, bank or other custodian or nominee on how to vote your shares.

Who can Attend the Annual Meeting by virtual presence online?

All stockholders of record as of the close of business on the Record Date, or their duly appointed proxies, may attend the Annual Meeting by virtual presence online by visiting www.virtualshareholdermeeting.com/WNC2021 at 9:45 a.m. Eastern time through the conclusion of the meeting and providing the control number found on the proxy card. If your shares are held in “street name,” you must first obtain a proxy issued in your name from your bank or other custodian or nominee before attending the Annual Meeting by virtual presence online. You will need to provide the control number found on the proxy card provided by such bank or other custodian or nominee.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   13

 


Table of Contents

Information About the Annual Meeting, Proxy Materials and Voting

 

Technical support, including related technical support phone numbers, will be available at 9:45 a.m. Eastern time through the conclusion of the meeting.

The 2021 Annual Meeting of Stockholders will be accessible through the Internet. This change is being made due to an abundance of caution related to the coronavirus (COVID-19) and the priority we place on the health and well-being of our stockholders, employees and other stakeholders. We have worked to offer the same participation opportunities as were provided at the in-person portion of our past meetings while further enhancing the online experience available to all stockholders regardless of their location. You are entitled to participate in the Annual Meeting if you were a stockholder as of the close of business on March 12, 2021. The Annual Meeting will begin promptly at 10:00 a.m. Eastern time, and you should allow ample time for the online check-in procedures.

Whether or not you participate in the Annual Meeting, it is important that your shares be part of the voting process. The other methods by which you may vote are described below.

This year’s stockholder question and answer session will provide our stockholders with the opportunities to ask questions regarding our business submitted live during the Annual Meeting. Questions may be submitted at the Annual Meeting through www.virtualshareholdermeeting.com/WNC2021. We will post questions and answers if applicable to our business on our Investor Relations website as soon as practicable after the meeting.

How do I Vote?

If you are a “stockholder of record,” you can vote on matters to come before the Annual Meeting in the following four ways:

 

 

Visit the website noted on your proxy card to vote via the internet;

 

 

Use the telephone number on your proxy card to vote by telephone;

 

 

Vote by mail by completing, dating and signing the proxy card mailed with your notice and returning it in the provided postage-paid envelope. If you do so, you will authorize the individuals named on the proxy card, referred to as the proxies, to vote your shares according to your instructions. If you provide no instructions, the proxies will vote your shares according to the recommendation of the Board of Directors or, if no recommendation is given, in their own discretion; or

 

 

Attend the Annual Meeting by virtual presence online and cast your vote.

If you hold your shares in “street name” through a broker, then you can vote by following the materials and instructions provided by your broker, or you can vote by virtual presence online at the Annual Meeting.

What if I vote and then change my mind?

If you are a “stockholder of record,” you may revoke your proxy at any time before it is exercised by:

 

 

Providing written notice of revocation to the Corporate Secretary, Wabash National Corporation, 3900 McCarty Lane, Lafayette, Indiana 47905;

 

 

Voting again, on a later date, via the internet or by telephone (only your latest internet or telephone proxy submitted prior to the Annual Meeting will be counted);

 

 

Submitting another duly executed proxy bearing a later date; or

 

 

Attending the Annual Meeting by virtual presence online and casting your vote.

Only your last vote will be the vote that is counted.

If you hold your shares in “street name,” then you must contact the record holder of your shares to change your voting instructions.

 

 

 

14   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Information About the Annual Meeting, Proxy Materials and Voting

 

What are the Board’s Recommendations?

The Board recommends that you vote FOR the election of each of the director nominees, FOR the approval, on an advisory basis, of the compensation of our named executive officers, and FOR ratification of the appointment of our auditors.

What Vote is Required for Each Proposal?

The following table summarizes the vote threshold required for approval of each proposal and the effect of abstentions, uninstructed shares held by brokers, and unmarked, signed proxy cards. On all proposals, if you sign and return a proxy or voting instruction card, but do not mark how your shares are to be voted, they will be voted as the Board recommends.

 

  PROPOSAL

  NUMBER

   ITEM    VOTE REQUIRED FOR
APPROVAL OF EACH
ITEM
   ABSTENTIONS    UNINSTRUCTED
SHARES
   UNMARKED,
SIGNED
PROXY
CARDS

1

   Election of Directors    Majority of votes cast    No effect    Not voted    Voted “for”

2

   Advisory vote on executive compensation    Majority of shares present and entitled to vote    Same effect as “against”    Not voted    Voted “for”

3

   Ratification of Appointment of Independent Auditor    Majority of shares present and entitled to vote    Same effect as “against”    Discretionary vote    Voted “for”

If you hold your shares in “street name” through a broker and you do not provide your broker with voting instructions, then, under New York Stock Exchange (“NYSE”) Rules, your broker may elect to exercise voting discretion with respect to “routine matters,” which includes the ratification of the appointment of our auditors (Proposal 3). However, on “non-routine” matters, which include the election of directors (Proposal 1) and the advisory vote on executive compensation (Proposal 2), your broker may not vote your shares unless you provide your broker with instructions. These so-called broker “non-votes” will be counted in determining whether there is a quorum.

What Constitutes a Quorum?

The presence at the Annual Meeting, by virtual presence online or by valid proxy, of the holders of a majority of the shares of our Common Stock outstanding on the Record Date will constitute a quorum, permitting us to conduct our business at the Annual Meeting. Proxies received but marked as abstentions and broker non-votes will be included in the calculation of the number of shares considered to be present at the Annual Meeting.

Who will Bear the Costs of this Proxy Solicitation?

We will bear the cost of solicitation of proxies. This includes the charges and expenses of brokerage firms and others for forwarding solicitation material to beneficial owners of our outstanding Common Stock. We may solicit proxies by mail, personal interview, telephone or via the Internet through our officers, directors and other management employees, who will receive no additional compensation for their services. In addition, we have retained Laurel Hill Advisory Group, LLC to assist with proxy solicitation. For their services, we will pay a fee of $7,000 plus out-of-pocket expenses.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   15

 


Table of Contents

Information About the Annual Meeting, Proxy Materials and Voting

 

How will my shares be voted if other matters are presented at the Annual Meeting?

As of the date of this Proxy Statement, the Board of Directors does not intend to present at the Annual Meeting any matters other than those described in this Proxy Statement and does not know of any matters that will be presented by other parties. If any other matter is properly brought before the meeting for action by the stockholders, proxies will be voted in accordance with the recommendation of the Board of Directors or, in the absence of such a recommendation, in accordance with the judgment of the proxy holder.

 

 

 

16   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents
 

 

Proposal 1 – Election of Directors

 

 

Our Bylaws provide that our Board of Directors, or the Board, shall be comprised of not less than three, nor more than twelve, directors with the exact number to be fixed by resolution of the Board. As of the date of this Proxy Statement, the Board is comprised of eight directors. The Board has fixed the authorized number of directors at eight directors as of the 2021 Annual Meeting. At the Annual Meeting, stockholders will be asked to elect each of the eight director nominees listed below, each of whom shall serve for a term of one year or until his or her successor is duly elected and qualified or until his or her earlier death, resignation or removal.

Below is information regarding each of the director nominees. Information regarding the Board’s process for nominating directors and director qualifications can be found below under the “Corporate Governance” section of this Proxy Statement.

Information on Directors Standing for Election

The biographies of each of the nominees below contains information regarding the experiences, qualifications, attributes or skills that caused the Nominating and Corporate Governance Committee and the Board to determine that the person should serve as a director of the Company. The name, age, business experience, and public company directorships of each nominee for director, during at least the last five years, are set forth in the table below.

 

 

 

Therese M. Bassett

 

LOGO

 

Age: 57

 

Director since: November 2019

 

Ms. Bassett is the Managing Director of NuVentures LLC., a consulting firm focused on strategy, innovation and M&A pipeline development. Prior to NuVentures, she served as Chief Strategy, Innovation, and Mergers and Acquisitions Officer at Avnet, Inc., an electronic components and services company, where she was responsible for identifying growth opportunities to enhance the overall business portfolio, financial strength and global market value. During her 26-year career with Avnet, Ms. Bassett also held the positions of Senior Vice President, Global HR Solutions (2010- 2016), Vice President, Strategic Planning and Business Intelligence (1998-2010), Manager, Electronic Manufacturing Services Business Development (1995-1998), and International Export and Transportation Manager (1993-1995). She is a graduate of Temple University and received an MBA from the University of Phoenix.

 

 

 

Qualifications: Ms. Bassett’s M&A, innovation and strategy expertise and her senior leadership experience reflected in her biography support our Board’s conclusion that she should be nominated as a director.

 

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   17

 


Table of Contents

Proposal 1 – Election of Directors

 

 

 

John G. Boss

 

LOGO

 

Age: 61

 

Director since: December 2017

 

Mr. Boss is the former President and Chief Executive Officer of Momentive Performance Materials Inc. (“MPM”). MPM is a global producer of silicones, quartz and specialty ceramic materials. Mr. Boss served as a director of MPM Holdings Inc. from October 2014 to March 2020. Mr. Boss served as the President of the Silicones & Quartz Division at MPM since joining in March 2014 to December 2014 and served as its Executive Vice President from March 2014 to March 2020. In April 2014, shortly after Mr. Boss joined the company, MPM filed voluntary petitions for reorganization relief pursuant to Chapter 11 of the United States Bankruptcy Code. Mr. Boss’ career spans more than 30 years in the specialty chemicals and materials industry, including various executive leadership positions with Honeywell International, a producer of commercial and consumer products from 2003 through 2014. Mr. Boss served as Vice President and General Manager of Specialty Products, Vice President and General Manager of Specialty Chemicals and President of Honeywell Safety Products at Honeywell International. Prior to joining Honeywell, Mr. Boss held positions of increasing responsibility at Great Lakes Chemical Corporation and Ashland Corporation (formerly International Specialty Products). Since 2020, Mr. Boss has served as a Director for Cooper Standard Corporation and as a Director and Audit Committee Member for Libbey, Inc. Mr. Boss has a Master of Business Administration degree in Marketing and Finance from Rutgers Graduate School of Management in 1996 and a Bachelor’s Degree in Mechanical Engineering from West Virginia University in 1981.

 

 

 

Qualifications: As reflected in his biography, Mr. Boss’ service in various leadership positions at other public companies, particularly, his recent service as a sitting chief executive officer at another public company and concomitant understanding of the day-to-day complexities and challenges of running such an organization, and his service on our Board, support our Board’s conclusion that he should again be nominated as a director.

 

 

 

 

18   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Proposal 1 – Election of Directors

 

 

 

John E. Kunz

 

LOGO

 

Age: 56

 

Director since: March 2011

 

Mr. Kunz has been the Senior Vice President and Chief Financial Officer for U.S. Concrete, Inc., a concrete and aggregate products producer serving the construction and building materials industries, since October 2017. Prior to his current position, Mr. Kunz served as Vice President and Controller of Tenneco Inc., a global manufacturer of automotive emission control and ride control systems. In this role, which he held from March 2015 to September 2017, Mr. Kunz served as the company’s principal accounting officer with responsibility for the company’s corporate accounting and financial reporting globally. Prior to that, Mr. Kunz served as Tenneco’s Vice President, Treasurer and Tax, a position he held since July 2006, preceded by his position as Tenneco’s Vice President and Treasurer, which he held from February 2004 until July 2006. Prior to his employment with Tenneco, Mr. Kunz was the Vice President and Treasurer of Great Lakes Chemical Corporation, a position he held from August 2001 until February 2004, after holding several finance positions of increasing responsibility at Great Lakes, beginning in 1999. Mr. Kunz holds a Master of Management in finance from the Kellogg School of Management at Northwestern University, along with an undergraduate degree in accounting from the University of Notre Dame.

 

 

 

Qualifications: As reflected in his biography, Mr. Kunz’s financial expertise, his experience managing the financial and governance aspects of cyclical manufacturers in the transportation, building products, chemical and steel sectors, as well as his expertise in managing financing and equity transactions, and his participation on our Board all supported the Board’s conclusion that he should again be nominated as a director.

 

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   19

 


Table of Contents

Proposal 1 – Election of Directors

 

 

 

Larry J. Magee

 

LOGO

Age: 66

 

Director since: January 2005

 

Chairman of the Board since:
May 2020

 

Mr. Magee has served as President of Magee Ventures Group, a consulting firm, since May 2018. Prior to his current position, he served as Interim CEO of Magnolia Group, LLC in Waco, Texas from April 2017 until May 2018. Mr. Magee was President and CEO of Heartland Automotive Services, Inc., the largest operator of quick lube retail service centers, operating over 540 Jiffy Lube locations in North America. He held this position from April 2015 until his retirement in October 2016. Prior to assuming the role of President and CEO of Heartland Automotive, Mr. Magee was the President, Consumer Tire U.S. & Canada, for Bridgestone Americas Tire Operations, LLC, a tire and rubber manufacturing company, a position he held from January 2011 until his retirement from Bridgestone in September 2013. He also served as Chairman of BFS Retail & Commercial Operations, LLC and Bridgestone of Canada, Inc. From December 2001 until January 2011, he served as Chairman, Chief Executive Officer and President of BFS Retail & Commercial Operations, LLC. Prior to December 2001, Mr. Magee served as President of Bridgestone/Firestone Retail Division, beginning in 1998. Mr. Magee has over 38 years combined experience in sales, marketing, and operational management, and held positions of increasing responsibility within the Bridgestone/Firestone family of companies during his 38-year tenure with Bridgestone/Firestone.

 

 

 

Qualifications: The retail leadership expertise reflected in Mr. Magee’s biography, including his performance as the chief executive officer and as a board member for divisions of another company, as well as his participation on our Board, supported the Board’s conclusion that he should again be nominated as a director.

 

 

 

 

20   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Proposal 1 – Election of Directors

 

 

 

Ann D. Murtlow

 

LOGO

 

Age: 60

Director since: February 2013

 

Ms. Murtlow is the President and Chief Executive Officer of United Way of Central Indiana, an organization that fights for the education, financial stability, health and basic needs for Central Indiana through the development and support of programs and organizations that serve struggling families and move them to self-sufficiency, a position she has held since April 1, 2013. Prior to assuming this role, Ms. Murtlow had a 30-year career in the global energy industry. Ms. Murtlow began her career as a design engineer with Bechtel Power Corporation, one of the world’s leading designers and constructors of electric utility infrastructure. Ms. Murtlow then joined AES Corporation (“AES”), where she developed a specialty in environmental permitting and became a leader in domestic and international power plant project development. She subsequently joined AES’s London office where she was named Vice President and Group Manager of AES’s development and operations in northern and central Europe. In 2002, Ms. Murtlow was named President and Chief Executive Officer at IPALCO Enterprises, Inc., and its subsidiary, Indianapolis Power & Light Company. Ms. Murtlow currently serves as a Director of Evergy, Inc., and its subsidiaries, Evergy Kansas Central, Inc. (Kansas corporation), Evergy Kansas South, Inc., Evergy Metro, Inc., and Evergy Missouri West, Inc. Ms. Murtlow served as a Director of First Internet Bancorp and its subsidiary, First Internet Bank, from 2013 until March 2020. Ms. Murtlow holds a Bachelor of Science degree in Chemical Engineering from Lehigh University and is a National Association of Corporate Directors Board Leadership Fellow.

 

 

 

Qualifications: The financial and strategic leadership experience reflected in Ms. Murtlow’s biography, her service as the former chief executive officer of a regulated electric utility company, service on the boards of other public companies, her participation on our Board and her experience in corporate social responsibility, supported the Board’s decision that she should again be nominated as a director.

 

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   21

 


Table of Contents

Proposal 1 – Election of Directors

 

 

 

Scott K. Sorensen

 

LOGO

Age: 59

Director since: May 2005

 

Mr. Sorensen is currently the Managing Director of Sorensen Capital, LLC. From May 2018 through November 2019, Mr. Sorensen served as the President and Chief Operating Officer of Ivanti Software and member of its Board of Directors. Ivanti is a leading enterprise software provider of unified IT solutions for the security, endpoint management and service management requirements of customers. Prior to his role as President and Chief Operating Officer of Ivanti Software, Mr. Sorensen served as the President and Chief Executive Officer and was a member of the Board of Directors of Sorenson Holdings which is a leading provider of assistive communications products and services from 2016 – 2018. Mr. Sorensen also held the position of Chief Operating Officer from 2012 – 2016 and served as the Chief Financial Officer from 2007 – 2016. Previously, Mr. Sorensen served as the Chief Financial Officer of Headwaters Inc. from 2005 – 2007 which was a diversified energy and construction materials provider. Prior to joining Headwaters, Mr. Sorensen was the Vice President and Chief Financial Officer of Hillenbrand Industries, a manufacturer and provider of products and services for the health care and funeral services industries, from 2001 – 2005. Mr. Sorensen also served in various financial leadership roles at Westinghouse Electric and worked in the operations and aerospace practices with McKinsey & Company.

 

 

 

Qualifications: Mr. Sorensen’s financial expertise and experience in corporate finance, combined with his experience in manufacturing, technology, strategy and mergers and acquisitions, as reflected in his biography, and his participation on our Board, supported the Board’s conclusion that he should again be nominated as a director.

 

 

 

 

Stuart A. Taylor II

 

LOGO

 

Age: 60

Director since: August 2019

 

Mr. Taylor is the Chief Executive Officer of The Taylor Group LLC, a private equity firm focused on creating and acquiring businesses. In this role, which he has held since 2001, Mr. Taylor oversees the firm’s sourcing and execution of investments and acquisition and disposition transactions. In addition, Mr. Taylor delivers deep financial and transactional expertise based on his Wall Street career along with significant experience as a director for publicly traded companies. He previously held positions as senior managing director at Bear, Stearns & Co. Inc. (1999-2001), and managing director of CIBC World Markets and head of its Global Automotive Group and Capital Goods Group (1996-1999). He also served as managing director of the Automotive Industry Group at Bankers Trust (1993-1996), following a 10-year position in corporate finance at Morgan Stanley & Co. He also serves as a director for Hillenbrand Inc. and Ball Corporation. He is a graduate of Yale University and received an MBA from the Harvard Graduate School of Business.

 

 

 

Qualifications: Mr. Taylor’s in-depth knowledge of strategic M&A and corporate development, financial expertise and service on other public company boards, as reflected in his biography, support our Board’s conclusion that he should be nominated as a director.

 

 

 

 

22   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Proposal 1 – Election of Directors

 

 

 

Brent L. Yeagy

 

LOGO

 

Age: 50

Director since: October 2016

 

Mr. Yeagy serves as President and Chief Executive Officer of Wabash National Corporation, a position he has held since June 2018. Prior to his current role, Mr. Yeagy was President and Chief Operating Officer of Wabash National from October 2016 to June 2018. Mr. Yeagy joined Wabash National in 2003 and held a number of positions with increasing responsibility, including Vice President of Manufacturing, Vice President and General Manager of Commercial Trailer Products, and Senior Vice President – Group President, Commercial Trailer Products. Prior to Wabash National, from 1999 to 2003, Mr. Yeagy held various positions within human resources, environmental engineering and safety management for Delco Remy International. Mr. Yeagy served in various plant engineering roles at Rexnord Corporation from December 1995 through 1999. He also served in the United States Navy from 1991 to 1994.

 

Mr. Yeagy holds a Bachelor of Science in Environmental Engineering Science and a Master of Science in Safety Engineering from Purdue University, and an MBA in Business Management from Anderson University. He has also attended executive programs at the University of Michigan’s Ross School of Business as well as Stanford’s Graduate School of Business. Mr. Yeagy is a graduate of the U.S. Navy’s Naval Nuclear Power Program and participated in the Navy’s Officer Candidate Program.

 

 

 

Qualifications: Mr. Yeagy’s more than 25 years of experience in executive leadership, beginning with his career in the United States Navy, and his strong background in managing many facets of operations in a manufacturing company, as reflected in his biography, and his role as our President and Chief Executive Officer, supported the Board’s conclusion that he should again be nominated as a director.

 

Board Recommendation

 

The Board of Directors UNANIMOUSLY recommends a vote “FOR” the election of each of the director nominees listed above.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   23

 


Table of Contents
 

 

Corporate Governance

 

 

Governance Guidelines & Code of Business Conduct & Ethics

The Board has adopted Corporate Governance Guidelines (the “Guidelines”) which set forth a framework within which the Board oversees and governs the affairs of Wabash National. The Guidelines cover, among other things, the composition and functions of the Board, director independence, director stock ownership, management succession and review, Board committees, the selection of new directors, and director responsibilities and duties.

Our Board has also adopted a Code of Business Conduct and Ethics (which applies to all of our directors, officers, and employees) and an additional Code of Business Conduct and Ethics for the Chief Executive Officer and Senior Financial Officers (together, the “Codes”). The Codes cover, among other things, compliance with laws, rules and regulations (including insider trading), conflicts of interest, corporate opportunities, confidentiality, protection and use of Company assets, and the reporting process for any illegal or unethical conduct. Any amendment to, or waiver from, a provision of the Codes for a director or executive officer will be promptly disclosed and posted on our website as required by law or the listing standards of the NYSE.

The Guidelines and the Codes are available on the Governance/Governance Documents page of the Investor Relations section of our website at ir.wabashnational.com and are available in print without charge by writing to: Wabash National Corporation, Attention: Corporate Secretary, 3900 McCarty Lane, Lafayette, Indiana 47905.

Board Structure and its Role in Risk Oversight

Director Independence

In February 2021, our Board of Directors undertook its annual review of director independence to determine the independence of our directors in accordance with NYSE listing standards. As a result of this review, the Board of Directors affirmatively determined that all of the directors nominated for election at the Annual Meeting are independent of Wabash National and its management within the meaning of the rules of NYSE, with the exception of Brent L. Yeagy, our President and Chief Executive Officer.

Independent Chairman

The Board does not have a formal policy on whether the roles of Board Chairman and Chief Executive Officer should be separate or combined. Rather, the Guidelines provide that the independent members of the Board may select the Chairman of the Board and the Company’s Chief Executive Officer in the manner they consider in the best interests of the Company.

Currently, the Board believes that it is in the best interests of the Company for the Chairman and Chief Executive Officer positions to be held by separate persons, given the differences between the two roles in our current management structure. Our Chief Executive Officer, among other duties, is responsible for setting the strategic direction for the Company and the day-to-day leadership and performance of the Company, while the Chairman of the Board, among his other responsibilities, presides at the executive sessions of our independent and non-management directors and facilitates communication between our independent directors and management. However, the Board reserves the right to combine the positions of the Chief Executive Officer and Chairman, should it determine that such a change is appropriate for our Company in the future.

Director Refreshment

Our Guidelines require that once any Board member reaches the age of 72, the Nominating and Corporate Governance Committee must annually consider the member’s continuation on the Board, and recommend to the Board whether, in light of all the circumstances, the Board should request that such member continue to serve on, or retire from, the Board. As of the date of the 2021 Annual Meeting, none of the director nominees will have reached the age of 72.

 

 

 

24   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Corporate Governance

 

Director Attendance

During 2020, our Board held 7 meetings. In 2020, all of the directors attended 75% or more of the total meetings of the Board and of the committees on which they serve that were held during the period that the director served on the Board. Our Board strongly encourages all of our directors to attend our Annual Meeting, and in 2020, all of our then serving directors attended the Annual Meeting.

Board’s Role in Risk Oversight

 

 

 

Board of Directors

 

The Board believes that strong and effective internal controls and risk management processes are essential elements in achieving long-term stockholder value. The Board, directly and through its committees, is responsible for overseeing material risks potentially affecting the Company, while management is responsible for implementing processes and controls to mitigate the effects of identified risks on the Company and managing day-to-day risks. Management also provides the Board with regular reports regarding oversight of financial and systemic risks within the Company.

 

The risk oversight by each of the Board committees is detailed below. Each committee reports to the Board of Directors quarterly regarding the committee’s risk management considerations and actions.

 

                                                                             

 

Audit

Committee

  Reviews audit and financial controls

  Investigates any matters pertaining to the integrity of management, including conflicts of interest, compliance with our financial controls, and adherence to Company policies

  Regularly meets with our General Counsel and members of management to discuss and assess potential enterprise risks, including potential cyber security risks

  Regularly meets with our external auditors to discuss and assess potential risks

  Reviews our risk management practices and risk-related policies (including the Codes)

  Evaluates potential related person transactions

      

 

Nominating and Corporate

Governance Committee

 

  Reviews our Governance Guidelines and Code of Business Conduct and Ethics and recommends revisions as necessary

  Evaluates director independence and committee membership

  Oversees annual evaluation of the Board, Committees, Chairman of the Board and CEO

  Reviews the Sustainability Report and recommends revisions as appropriate

  Oversees Board succession and professional development

      

 

Compensation

Committee

 

  Monitors our executive compensation packages and our incentive compensation plans, which seek to encourage appropriate, and not excessive, risk-taking by our executives and other employees

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   25

 


Table of Contents

Corporate Governance

 

Committees of the Board

The Board has three standing committees: (1) the Nominating and Corporate Governance Committee, (2) the Compensation Committee, and (3) the Audit Committee. Each committee maintains a charter, which can be accessed electronically from the Governance/Governance Documents page of the Investor Relations section of our website at ir.wabashnational.com or by writing to us at Wabash National Corporation, Attention: Corporate Secretary, 3900 McCarty Lane, Lafayette, Indiana 47905.

The following table indicates each standing committee or committees on which our directors served in 2020, other than Mr. Yeagy, who did not serve on any committees in 2020:

 

  NAME    NOMINATING AND
CORPORATE
GOVERNANCE
COMMITTEE
   COMPENSATION
COMMITTEE
   AUDIT
COMMITTEE

Therese M. Bassett

  

Member

  

Member

    

John G. Boss

  

Member

  

Member

    

John E. Kunz

       

Member

  

Chair

Larry J. Magee

  

Member

  

Member

    

Ann D. Murtlow

  

Chair

  

Member

    

Scott K. Sorensen

       

Chair

  

Member

Stuart A. Taylor II

       

Member

  

Member

Effective following the 2021 Annual Meeting, if all the nominees for election at the Annual Meeting are elected, then such nominees will continue to serve on the committees reflected in the chart above.

Nominating and Corporate Governance Committee

The Nominating and Corporate Governance Committee met 5 times during 2020. The Nominating and Corporate Governance Committee’s responsibilities include:

 

 

Assisting the Board by leading board member recruitment efforts, including identifying individuals or reviewing stockholder-nominated individuals qualified to become directors, recommending to the Board the director nominees for the next annual meeting of stockholders, and performing initial interviews of potential board member candidates;

 

 

Developing and recommending to the Board a set of corporate governance principles applicable to the Company;

 

 

Leading the Board in its annual review of the Board’s performance; and

 

 

Recommending to the Board director nominees for each Board committee.

As part of the Nominating and Corporate Governance Committee’s annual review of the Board’s performance, and its process for recommending director nominees for the next annual meeting of stockholders (which is described in more detail below under “Nomination of Director Candidates,”) it regularly considers each member’s attendance and overall contributions to the Board, the diversity of the Board’s composition (including diversity of expertise, geography, age, gender, race, and ethnicity), and the willingness of a member to represent and serve the long-term interests of our stockholders.

 

 

 

26   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Corporate Governance

 

Compensation Committee

The Compensation Committee met 6 times during 2020. The Compensation Committee’s responsibilities include:

 

 

Considering, recommending, and approving our incentive compensation plans and our equity-based plans for our executive officers;

 

 

Annually reviewing and recommending to the Board the forms and amounts of director compensation; and

 

 

Annually reviewing and approving the corporate goals and objectives relevant to the CEO’s and other executive officers’ compensation, evaluating their performance in light of those goals and objectives, and setting compensation levels based on the evaluations.

In 2020, as in past years, the Compensation Committee engaged an independent compensation consultant, Meridian Compensation Partners LLC (“Meridian”). The Compensation Committee requested that Meridian provide competitive market assessments regarding executive officer compensation, which were used by the Compensation Committee in determining the appropriate executive officer compensation levels for 2020 that are in line with the Company’s compensation plans, philosophies and goals. Meridian also provides market assessments regarding non-employee director compensation.

Additional information regarding the Compensation Committee’s process for determining executive officer compensation can be found below in the Compensation Discussion and Analysis section of this Proxy Statement under the heading “Compensation Methodology and Process.”

Audit Committee

The Board has established a separately designated standing Audit Committee in accordance with the requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Audit Committee met 8 times during 2020. In addition to the Board’s determination that each member of the Audit Committee is “independent” within the meaning of the rules of the NYSE, the Board also determined that Messrs. Kunz, Sorensen and Taylor are “audit committee financial experts” as defined by the rules of the SEC, and that they have accounting and related financial management expertise within the meaning of the listing standards of the NYSE.

The Audit Committee’s responsibilities include:

 

 

Reviewing the independence of the independent auditors and making decisions regarding engaging and discharging independent auditors;

 

 

Reviewing with the independent auditors the plans and results of auditing engagements;

 

 

Reviewing and approving non-audit services provided by our independent auditors and the range of audit and non-audit fees;

 

 

Reviewing the scope and results of our internal audit procedures and the adequacy of the system of internal controls;

 

 

Overseeing special investigations, if any;

 

 

Reviewing our financial statements and reports filed with the SEC;

 

 

Overseeing our efforts to ensure that our business and operations are conducted in compliance with legal and regulatory standards applicable to us, as well as ethical business practices;

 

 

Overseeing the Company’s internal reporting system regarding compliance with federal, state and local laws;

 

 

Establishing and implementing procedures for confidential communications for “whistleblowers” and others who have concerns with our accounting, internal accounting controls and audit matters; and

 

 

Reviewing our significant accounting policies.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   27

 


Table of Contents

Corporate Governance

 

Related Persons Transactions Policy

Our Board has adopted a written Related Persons Transactions Policy that sets forth our policy and procedures for review, approval and monitoring of transactions between the Company and “related persons.” Related persons include directors, nominees for director, executive officers, stockholders owning 5% or greater of our outstanding stock, and any immediate family members of the aforementioned. The Related Persons Transactions Policy is administered by a committee designated by the Board, which is currently the Audit Committee.

Pursuant to the policy, transactions involving amounts exceeding $120,000, in which a related person has a direct or indirect material interest, must be approved, ratified, rejected or referred to the Board by the Audit Committee. The policy provides that as a general rule all related person transactions should be on terms reasonably comparable to those that could be obtained by the Company in arm’s length dealings with an unrelated third party. However, the policy takes into account that in certain cases it may be impractical or unnecessary to make such a comparison. In such cases, the transaction may be approved in accordance with the provisions of the Delaware General Corporation Law. When evaluating potential related person transactions, the Audit Committee considers all reasonably available facts and circumstances and approves only the related person transactions determined in good faith to be in compliance with, or not inconsistent with, our Code of Business Conduct and Ethics, and the best interests of our stockholders.

The Related Persons Transaction Policy provides that management, or the affected director or officer will bring any potentially relevant transaction to the attention of the Audit Committee. Additionally, each year, our directors and executive officers complete questionnaires designed to elicit information about potential related person transactions, and the directors and officers must promptly advise the Corporate Secretary if there are any changes to the information previously provided. If a director is involved in the transaction, he or she will be recused from all discussions and decisions with regard to the transaction, to the extent practicable. The transaction must be approved in advance whenever practicable, and if not practicable, must be ratified as promptly as practicable. All related person transactions will be disclosed to the full Board and will be included in the Company’s proxy statement and other appropriate filings as required by the rules and regulations of the SEC and the NYSE. During 2020, there were no required disclosures arising from such relationships.

Nomination of Director Candidates

Qualifications of Director Candidates

To be considered by the Nominating and Corporate Governance Committee, a director nominee must meet the following minimum criteria:

 

 

Has the highest personal and professional integrity;

 

 

Has a record of exceptional ability and judgment;

 

 

Possesses expertise, skills, experience and knowledge useful to our oversight;

 

 

Is able and willing to devote the required amount of time to our affairs, including attendance at Board and committee meetings; and

 

 

Has the interest, capacity and willingness, in conjunction with the other members of the Board, to serve the long-term interests of the Company and its stockholders.

In reviewing these and other relevant criteria, the Board may consider the diversity of director candidates, including diversity of expertise, geography, gender, race, and ethnicity. We seek independent directors who represent a mix of backgrounds and experiences that will enhance the quality of the Board’s deliberations and decisions. The goal in reviewing these characteristics for individual director candidates is that they, when taken

 

 

 

28   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Corporate Governance

 

together with those of other Board members, will lead to a Board that is effective, collegial, and responsive to the needs of the Company and its stockholders.

Director Nomination Process

The Nominating and Corporate Governance Committee recommends to the Board nominees that best suit the Board’s needs at the time of the nomination. Nominees are selected by the committee with the assistance of, if desired by the committee, a retained search firm, after reviewing the candidates’ credentials, clearing potential conflicts, performing reference checks, and conducting interviews with the candidates to determine if they meet the qualifications described above.

The Nominating and Corporate Governance Committee will consider stockholder recommendations for director nominees sent to the Nominating and Corporate Governance Committee, Wabash National Corporation, Attention: Corporate Secretary, 3900 McCarty Lane, Lafayette, Indiana 47905. Stockholder recommendations for director nominees should include:

 

 

The name and address of the stockholder recommending the person to be nominated;

 

 

A representation that the stockholder is a holder of record of our stock, including the number of shares held and the period of holding;

 

 

A description of all arrangements or understandings between the stockholder and the recommended nominee;

 

 

Such other information regarding the recommended nominee as would be required to be included in a proxy statement filed pursuant to Regulation 14A under the Exchange Act;

 

 

The consent of the recommended nominee to serve as a director if so elected; and

 

 

All other required information set forth in our Bylaws.

Stockholders’ nominees that comply with the procedures for submitting a stockholder nomination will receive the same consideration as other candidates identified by or to the Nominating and Corporate Governance Committee. The procedures for submitting a stockholder nomination are set forth below under the heading “General Information – Stockholder Proposals and Nominations.” Upon receipt by the Corporate Secretary of a stockholder notice of a director nomination, the Corporate Secretary will notify the stockholder that the notice has been received and will be presented to the Nominating and Corporate Governance Committee for review.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   29

 


Table of Contents

Corporate Governance

 

Director Compensation

The Compensation Committee makes recommendations to the full Board regarding non-employee director compensation. Meridian reviewed our director compensation with the Compensation Committee during 2020. As a result of such review, at the February 2020 Board meeting and based upon the recommendation of our Compensation Committee, the Board approved an increase of $10,000 to the equity retainer and kept the cash retainer at the same level that was approved in 2020. However, as a result of the COVID-19 pandemic, in May 2020 the Board decided to forgo the previously approved increase in their equity retainer as a part of the Company’s cost cutting measures, resulting in the following annual retainers for 2020:

 

  ANNUAL RETAINERS (1)    AMOUNT  

  Board

  

 

$190,000

 (2) 

  Member:

  

            

 

  Audit Committee

  

 

$  10,000

 

 

  Compensation Committee

  

 

$    8,000

 

 

  Nominating and Corporate Governance Committee

  

 

$    8,000

 

  Chairman of the Board

  

 

$  25,000

 

  Audit Committee Chair

  

 

$  15,000

 

  Compensation Committee Chair

  

 

$  12,000

 

  Nominating and Corporate Governance Committee Chair

  

 

$  10,000

 

 

(1)

All annual cash retainers are paid in quarterly installments. Annual grants of restricted stock units, referenced in footnote 2 below, are paid in full following the election of directors at the annual meeting.

 

(2)

Consists of an $80,000 cash retainer and an award of restricted stock units of Company stock having an aggregate market value at the time of grant of $110,000. Restricted stock units vest in full on the first anniversary of the grant date.

Meridian continued to review our director compensation with the Compensation Committee during 2020 and 2021. As a result of such review and to more closely reflect the market for director compensation, at the February 2021 Board meeting and based upon the recommendation of our Compensation Committee, the Board approved a $15,000 increase to the equity portion of the annual retainer, a $50,000 increase for the Chairman of the Board, and a $5,000 and $3,000 increase resulting in the following annual retainers:

 

  ANNUAL RETAINERS (1)    AMOUNT  

  Board

  

 

$205,000

(2) 

  Member:

  

            

 

  Audit Committee

  

 

$  10,000

 

 

  Compensation Committee

  

 

$    8,000

 

 

  Nominating and Corporate Governance Committee

  

 

$    8,000

 

  Chairman of the Board

  

 

$  75,000

 

  Audit Committee Chair

  

 

$  20,000

 

  Compensation Committee Chair

  

 

$  15,000

 

  Nominating and Corporate Governance Committee Chair

  

 

$  10,000

 

 

(1)

All annual cash retainers are paid in quarterly installments. Annual grants of restricted stock units, referenced in footnote 2 below, are paid in full following the election of directors at the annual meeting.

 

(2)

Consists of an $80,000 cash retainer and an award of restricted stock units of Company stock having an aggregate market value at the time of grant of $125,000. Restricted stock units vest in full on the first anniversary of the grant date.

 

 

 

30   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Corporate Governance

 

The following table summarizes the compensation paid to our directors during 2020, other than Mr. Yeagy, whose compensation is discussed below under Executive Compensation.

 

Director Compensation for Year-End

December 31, 2020

NAME

  

(1)

FEES EARNED OR

PAID IN CASH
($)

  

(2)

STOCK AWARDS
($)

  

(3)

ALL OTHER
COMPENSATION
($)

   TOTAL
($)

Larry J. Magee

    

$

111,866

    

$

110,001

    

$

4,225

    

$

226,091

  

Therese M. Bassett

    

$

96,000

    

$

110,001

    

$

    

$

206,001

John G. Boss

    

$

96,000

    

$

110,001

    

$

3,840

    

$

209,841

Martin C. Jischke

    

$

44,941

    

$

    

$

    

$

44,941

John E. Kunz

    

$

103,000

    

$

110,001

    

$

4,120

    

$

217,121

Ann D. Murtlow

    

$

98,000

    

$

110,001

    

$

    

$

208,001

Scott K. Sorensen

    

$

102,000

    

$

110,001

    

$

4,080

    

$

216,081

Stuart A. Taylor II

    

$

98,000

    

$

110,001

    

$

    

$

208,001

 

(1)

Consists of cash fees earned in 2020 for annual retainers. This column includes any amounts a director elects to defer pursuant to the Non-Qualified Deferred Compensation Plan. The terms of this plan are discussed below.

 

(2)

For each director, other than Dr. Jischke, consists of a grant of 14,212 restricted stock units on May 12, 2020, which vest on May 12, 2021. As of December 31, 2020, each of the non-employee directors other than Dr. Jischke held 14,212 unvested restricted stock units. Dr. Jischke retired from the Board effective as of the 2020 annual stockholders’ meeting so he did not receive a grant of restricted stock units during 2020.

 

(3)

Consists of the Company’s match pursuant to our Non-Qualified Deferred Compensation Plan. The Company fully matches the first 3% of earnings deferred by a participant under the Non-Qualified Deferred Compensation Plan. In addition, the Company will contribute 12% for each additional percent of deferred earnings contributed by the participant, up to a maximum of 5% of the participant’s deferred earnings (thus resulting in a maximum of a 4% Company match on a participant’s deferral of 5% of his/her earnings).

Non-employee Director Stock Ownership Guidelines

The Board believes that it is important for each director to have a financial stake in the Company because it aligns the director’s interests with those of the Company’s stockholders. To meet this objective, the Board has established stock ownership guidelines, which require each non-employee director to hold 50% of all Company shares received from annual retainers (the “Director Holding Requirement”) until the non-employee director achieves a target ownership level equal to five (5) times the cash portion of the non-employee director’s Annual Board Retainer (provided, however, that the Director Holding Requirement shall never prohibit a director from withholding, selling, or tendering enough shares from an equity award to satisfy all applicable withholding taxes on such award). Once a non-employee director has achieved his/her stated target ownership level, s/he is no longer required to adhere to the Director Holding Requirement, unless and until his/her ownership level falls below the target.

For purposes of calculating target ownership levels, the following types of Company shares are counted: stock owned by the non-employee director and vested and unvested restricted stock and restricted stock units, including those deferred under the non-qualified deferred compensation plan.

Non-employee directors are required to comply with the Director Holding Requirement immediately upon their appointment as a director and are required to meet their target ownership level within five years of becoming a director. As of December 31, 2020, all non-employee directors had either met their target ownership level or had more time to do so, and all directors who had not yet met their target ownership level were in compliance with the Director Holding Requirement.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   31

 


Table of Contents

Corporate Governance

 

Non-Qualified Deferred Compensation Plan

Directors may defer their cash retainer and their restricted stock unit awards under the Company’s non-qualified deferred compensation plan. The Company matches dollar-for-dollar the first 3% of cash retainers that a director defers into the plan and one-half of the next 2% the director contributes to the plan. The Company does not make matching contributions with respect to any deferred restricted stock unit awards. Deferrals of cash retainers may be invested into one or more investment funds available under the plan from time to time, and directors can elect to have the funds paid out in a lump sum or up to 10 annual installments following termination from the Board, as well as limited in-service distributions. Deferrals of restricted stock units are deemed invested in shares of the Company’s common stock and are paid out in shares at the time the director terminates from the Board. The deferred compensation plan is unfunded and subject to forfeiture in the event of bankruptcy.

Other

The Company reimburses all directors for travel and other reasonable, necessary business expenses incurred in the performance of their services for the Company and extends coverage to them under the Company’s travel accident and directors’ and officers’ liability insurance policies. In addition, the Company allocates to each director an allowance of $10,000 (every two years) to reimburse costs associated with attending continuing education courses related to Board of Directors service.

 

 

 

32   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents
 

 

Compensation Discussion and Analysis

 

 

Compensation Highlights

Our compensation program is designed to motivate our executives and other salaried employees to execute our business strategies and strive for higher Company performance, while maintaining our core values, as described in our Proxy Statement Summary. Although Wabash National’s compensation program applies to most salaried employees, the following compensation discussion and analysis (“CD&A”) focuses on our compensation program and policies’ applicability to our Named Executive Officers, whom we refer to as NEOs. Our NEOs for 2020 are as follows:

 

Brent L. Yeagy

President and Chief Executive Officer

Michael N. Pettit

Senior Vice President and Chief Financial Officer*

  

Dustin T. Smith

Senior Vice President, Global Operations

Kevin J. Page

Senior Vice President, Customer Value Creation

  

M. Kristin Glazner

Senior Vice President and General Counsel, Corporate Secretary, and Chief Human Resources Officer**

Jeffery L. Taylor

Former Senior Vice President and Chief Financial Officer*

  

Melanie D. Margolin

Former Senior Vice President and General Counsel, Corporate Secretary**

 

*

Mr. Taylor’s employment with Wabash ended on January 16, 2020. Mr. Pettit succeeded Mr. Taylor as our Chief Financial Officer.

 

**

Ms. Margolin’s employment with Wabash ended on May 28, 2020. Ms. Glazner succeeded Ms. Margolin as our Senior Vice President and General Counsel, Corporate Secretary, and continued in her role as Chief Human Resources Officer.

Compensation Actions Taken in Connection With COVID-19

As a result of the COVID-19 pandemic, we took a number of actions to reduce spending and preserve cash across our Company, including making pay cuts to our executive officers. Specifically, Mr. Yeagy took a 30% salary reduction, and the other NEOs each took a 15% salary reduction, in each case effective April 6, 2020 through July 27, 2020. As mentioned above, our directors also decided to forgo their previously approved increase in equity compensation as an additional cost saving measure. However, we did not to make adjustments to any performance goals under our 2020 MIP or with respect to any outstanding performance equity awards.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   33

 


Table of Contents

Compensation Discussion and Analysis

 

Compensation Best Practices

Highlighted below are certain executive compensation governance practices (that we employ and avoid) that support the needs of our business, drive performance and align with our stockholders’ long-term interests. These practices include:

 

PRACTICES WE EMPLOY

 

 

Pay for Performance

 

Market Competitive Executive Severance/Change in Control Policy

 

Annual Peer Review

 

Incentive Compensation Designed to Discourage Excessive Risk-Taking

 

Annual NEO Performance and Pay Review

 

Rigorous Stock Ownership Requirements for Executives and Non- Employee Directors

 

Engage Independent Compensation Consulting Firm

PRACTICES WE AVOID

 

 

×

Pledging, Hedging, and Short Sales of Our Stock

 

×

Repricing Underwater Stock Options or Stock Appreciation Rights Without Stockholder Approval

 

×

Employment Contracts

 

×

Executive Pension Plans

 

×

Substantial Perquisites

 

×

Having Non-Independent Directors on the Compensation Committee

 

×

Single Trigger Change in Control Benefits

 

 

 

 

34   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Compensation Discussion and Analysis

 

Summary of Compensation Elements

A summary of each component of Wabash National’s compensation program is summarized in the table below. A more detailed discussion of each element can be found below under the heading “Compensation Program Elements.”

 

  COMPONENT    DESCRIPTION    WHERE REPORTED IN THE
EXECUTIVE COMPENSATION TABLES

Base Salary

  

  Fixed cash compensation.

  Takes into consideration executive’s level of responsibility, experience, knowledge and performance, internal equity considerations, and a competitive market assessment.

  

  Summary Compensation Table – “Salary” column

Short-Term Incentive Award

  

  Variable short-term incentive paid in cash based on annual performance against Company-wide financial goals.

  Purpose is to promote the achievement of short-term financial goals aligned with fiscal year operational objectives and stockholder interests.

  

  Summary Compensation Table“Non-Equity Incentive Plan Compensation” column

  Grants of Plan-Based Awards Table – “Estimated Possible Payouts Under Non-Equity Incentive Plan Awards” column

Long-Term Incentive Award

  

  Variable compensation delivered through a combination of Performance Stock Units and Restricted Stock Units.

  Objectives are to create alignment with stockholder interests and promote achievement of longer-term financial and strategic objectives, reward executives for long-term growth and performance of the Company and encourage executive retention.

  

  Summary Compensation Table – “Stock Awards” column

  Grants of Plan-Based Awards Table – “Estimated Possible Payouts Under Equity Incentive Plan Awards” column

  Outstanding Equity Awards at Fiscal Year-End table

  Option Exercises and Stock Vested Table

Perquisites

  

  We provide limited perquisites to help us remain competitive with the market.

  

  Summary Compensation Table – “All Other Compensation” column

Retirement and
Deferred
Compensation
Benefits

  

  The NEOs participate in our 401(k) plan, which includes a Company match, on the same terms as all other salaried employees.

  A select group of employees, including the NEOs, can elect to defer their base salary and/or MIP Awards under our non- qualified deferred compensation plan. We partially match employee contributions when the performance of the Company allows.

  

  Summary Compensation Table – “All Other Compensation” column

  Non-Qualified Deferred Compensation Table

Potential Payments
Upon Change in
Control and Certain Terminations of Employment

  

  Encourages executives to operate in the best interests of stockholders both before and after a Change in Control event.

  Provides market competitive benefits in the event of certain terminations of employment.

  

  Potential Payments on Termination or Change in Control Payment and Benefits Estimate Table

Our 2020 Say-on-Pay Vote

The Compensation Committee carefully considered the results of the Company’s “Say-on-Pay Vote” taken by stockholders at its 2020 Annual Meeting, and the Committee plans to continue to carefully consider the results of this vote each year. At the 2020 Annual Meeting, over 97% of the stockholder votes cast on the proposal were cast in favor of the resolution stating that the stockholders “approve the compensation of Wabash National’s executive

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   35

 


Table of Contents

Compensation Discussion and Analysis

 

officers.” The Compensation Committee believes that the level of support indicated by this vote reflects favorably on the Company’s executive compensation program, which emphasizes “pay for performance,” even in the highly cyclical industry in which Wabash National operates.

Compensation Objectives and Philosophy

The primary objectives and philosophy of our compensation programs are to (i) drive executive behaviors that maximize long-term stockholder value creation, (ii) attract and retain talented executive officers with the skills necessary to successfully manage and grow our business, and (iii) align the interests of our executive officers with those of our stockholders by rewarding them for strong Company performance. In support of these objectives, we:

 

 

Target NEO total compensation package competitive with peers – We regularly compare our NEOs’ total compensation levels, as well as the elements of our NEO pay, with companies of a similar industry, size and complexity;

 

 

Deliver a meaningful proportion of NEO compensation in share-based incentives – In 2020, 61.2% to 38.4% of NEO total direct compensation was targeted to be delivered in the form of restricted stock units and performance stock units, with a goal of driving sustainable stockholder value;

 

 

Encourage NEOs to be long-term stockholders – In addition to delivering a significant portion of each of our NEO’s compensation in share-based compensation, we also require that each of our NEOs hold shares of our stock equal to a multiple of his or her base salary; and

 

 

Weight a significant portion of NEO compensation toward variable and performance-based pay elements – In 2020, approximately 62.7% to 80.6% of NEO total direct compensation was targeted to be delivered in variable short-term (annual) or long-term incentive compensation. As shown below, approximately 80.6% of Mr. Yeagy’s target total direct compensation in 2020 was in the form of short-term or long-term incentive compensation.

 

LOGO   LOGO   LOGO
LOGO   LOGO   LOGO

 

*

Mr. Taylor was not included since his employment terminated before LTI or STI was granted for 2020

 

 

 

36   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Compensation Discussion and Analysis

 

Compensation Methodology and Process

The Compensation Committee, consisting of only independent members of the Board, is responsible for considering, recommending, and approving our incentive compensation plans and our equity-based plans for our executive officers. In connection with that work, the Compensation Committee annually reviews and approves the corporate goals and objectives relevant to the CEO’s and other executive officers’ compensation, evaluating their performance in light of those goals and objectives, and setting compensation levels based on the evaluations. In addition, the Compensation Committee annually reviews and recommends to the Board the forms and amounts of director compensation.

To assist it in setting executive compensation for 2020, the Compensation Committee engaged Meridian, an independent compensation consultant, to help ensure that our compensation packages remain competitive with the market. (Additional details about Meridian’s role is discussed below under the heading “The Role of the Independent Compensation Consultant.”) In addition to reviewing the market data provided by Meridian, the Compensation Committee also considered the following factors when making compensation decisions for each of our NEOs in 2020:

 

 

The CEO’s evaluation of each of the other NEOs’ performance, as well as his recommendations for changes to the NEOs’ base salaries (if any) and MIP and LTI targeted award levels. Note that the Compensation Committee has the discretion to accept, reject or modify any of the CEO’s recommendations, and the NEOs are not present during these discussions;

 

 

Our Directors’ annual evaluation of the CEO’s performance, as obtained by the Nomination and Governance Committee, and delivered by the Compensation Committee;

 

 

The expected cost of the incentive plans to the Company and the present and future availability of shares under our equity plans; and

 

 

The results of our annual non-binding “say-on-pay” proposal, as discussed above under the heading “Our 2020 Say-On-Pay Vote.”

The Role of Independent Compensation Consultant

As noted above, for 2020, the Compensation Committee retained Meridian to provide compensation market data and generally review and advise the Committee regarding our compensation programs, policies and disclosures.

Specifically, Meridian’s engagement encompasses advisory services such as annual review of executive compensation philosophy, a competitive assessment of executive compensation levels and “pay-for-performance” linkage, executive cash and equity incentive program design, competitive assessment of non-employee director compensation, and other ad hoc support. Meridian works at the direction of, and reports directly to, the Compensation Committee. Meridian does not provide any other services to Wabash National.

The Compensation Committee has evaluated Meridian as a compensation consultant, taking into consideration all relevant factors required under NYSE listing standards, and has determined, based on its analysis in light of all relevant factors, that the work of Meridian has not created any conflicts of interest, and that Meridian is independent pursuant to the independence standards set forth in the NYSE listing standards promulgated pursuant to Section 10C of the Exchange Act.

Peer Group Analysis and Compensation Market Data

As referenced above, Meridian provides the Compensation Committee with market compensation data to help the Compensation Committee assess the competitiveness of total compensation for each NEO. However, the Committee does not use this data to specifically “benchmark” or target a certain percentage or level of

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   37

 


Table of Contents

Compensation Discussion and Analysis

 

compensation for the NEOs compared to our peer groups. Rather, the Committee considers competitive peer group data as one significant factor in setting pay levels and amounts, and retains the flexibility to also consider subjective factors, such as each executive’s fulfillment of duties, teamwork, level of responsibility, knowledge, time in position, experience and internal equity among the executives with similar experience and job responsibilities in addition to market data.

Meridian provides the Compensation Committee with market data from the following two sources: (i) published proxies of companies specifically selected as proxy peer companies (the “Proxy Peer Group”), and (ii) the proprietary Equilar database (the “Equilar Peer Group”). In setting 2020 compensation, the Committee utilized data from the Proxy Peer Group as the primary data source to assess the competitive positioning for the CEO and CFO’s target compensation. Given the limited positional data available from proxies, the Committee utilized data from the Equilar Peer Group as the primary data source to assess competitive positioning for the other NEOs. Data from the Equilar Peer Group was considered a secondary data source for the CEO and CFO positions.

With the help of Meridian, the Committee reviews annually both peer groups to confirm that they continue to be appropriate comparator groups for NEO compensation and makes adjustments as it deems appropriate. The companies in the Proxy Peer Group and the Equilar Peer Group are similar to Wabash National in revenue, complexity, and market capitalization, as shown in the table below:

 

      REVENUE*    MARKET CAPITALIZATION**

Proxy Peer Group

     

Range

   $925 million to $6.026 billion    $254 million – $14.357 billion

Median

   $2.188 billion    $2.338 billion

Equilar Peer Group

     

Range

   $800 million to $4.440 billion    $637 million – $12.759 billion

Median

   $2.074 billion    $3.254 billion

Wabash National Corporation

   $2.3 billion    $862 million

 

*

Revenues for the Proxy Peer Group and the Equilar Peer Group reflect those from the most recent four quarters reported as of 7/31/2019. The revenue shown for Wabash relates to our 2019 fiscal year.

 

**

As of July 31, 2019.

The companies that make up the Proxy Peer Group and Equilar Peer Group for 2020 are reported in the following tables.

 

2020 PROXY PEER GROUP
   

A.O. Smith

   EnPro Industries, Inc.    Meritor, Inc.
   

Allison Transmission Holdings, Inc.

   Enterpac Tool Group Corp. (f/k/a Actuant)    Modine Manufacturing Company
   

Barnes Group

   Federal Signal Corporation    Nordson Corp.
   

Briggs & Stratton Corporation

   Greenbrier Companies, Inc.    Tower International, Inc.
   

Chart Industries, Inc.

   Harsco Corporation    Wabtec Corporation
   

Commercial Vehicle Group, Inc.

   IDEX Corporation    Woodward, Inc.
   

Donaldson Company

   ITT, Inc.     

 

 

 

 

38   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Compensation Discussion and Analysis

 

2020 EQUILAR PEER GROUP
   

A.O. Smith

   Flowserve Corporation    Snap-On Incorporated
   

Chart Industries Inc.

   Franklin Electric Co., Inc.    SPX Flow, Inc.
   

Coherent Inc.

   Graco, Inc.    The Timken Company
   

Donaldson Company

   Hillenbrand, Inc.    The Toro Company
   

Enterpac Tool Group Corp. (f/k/a Actuant)

   IDEX Corporation    Tower International, Inc.
   

ESCO Technologies, Inc.

   Meritor, Inc.    TriMas Corporation
   

Federal Signal Corporation

   Nordson Corp.    WABCO Holdings, Inc.

Compensation Program Elements

The following information describes, in detail, each element of our executive compensation program for 2020, including a discussion of performance metrics and compensation levels. It is intended that this information be read in conjunction with the information provided in the tables that follow this CD&A.

Base Salary

Base salaries are intended to provide a stable source of compensation for each of our NEOs. In determining salary levels for each of our NEOs, the Committee takes into consideration a competitive market assessment provided to it by Meridian, the NEO’s individual performance, level of responsibility, experience and knowledge, as well as each NEO’s current salary as compared to the other NEOs and officers of the Company. The following table shows the changes that the Committee made to the NEOs’ 2020 base salaries compared to their base salaries in effect at the end of 2019. All base salary increases were effective as of January 1, 2020.

 

  NAME    2020 ANNUAL BASE
SALARY
   % INCREASE FROM
2019

Mr. Yeagy

   $900,000      7.1%

Mr. Pettit

   $390,000    20.0%

Mr. Smith

   $415,000    10.7%

Mr. Page

   $350,000    20.7%

Ms. Glazner

   $365,000    10.6%

Mr. Taylor

   $458,000         0%

Ms. Margolin

   $415,000      3.8%

Our Committee’s review of the Proxy Peer Group data showed that Mr. Pettit’s and Mr. Page’s base salary were approximately 30% below their respective market median, so the Committee decided to provide each of them with a significant base salary increase in 2020 in an effort to better align their compensation internally and with the external market and, in the case of Mr. Pettit, to recognize his promotion to Chief Financial Officer. As shown in the table above, the Committee also approved modest increases for each of the NEOs, in each case in recognition of the NEO’s performance during the preceding year and to better align the NEO’s base salary with the Proxy Peer Group data.

However, as discussed above under “Compensation Actions Taken in Connection With COVID-19,” in light of the COVID-19 pandemic, effective April 6, 2020, the Committee temporarily reduced Mr. Yeagy’s base salary by 30% and the base salaries of the other NEOs employed on such date by 15% as a cash preservation measure. The base salaries were restored back to the levels set forth in the table above effective July 27, 2020.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   39

 


Table of Contents

Compensation Discussion and Analysis

 

Short-Term Incentive Plan

Our short-term incentive plan, or MIP Plan, is designed to reward participants (which include each of the NEOs as well as other key executives and employees) with a cash bonus for meeting or exceeding financial and other performance goals during a calendar year. At the beginning of each year, we establish a target MIP rate for each participant, which is equal to the percentage of the participant’s base salary that he or she will receive as a cash bonus if the MIP goals are achieved at target. However, the actual bonus received may be higher or lower, depending on our financial performance against pre-established performance metrics, which are described in more detail below. We also have the ability, in our discretion, to decrease (or completely eliminate) a participant’s MIP bonus if he or she fails to meet his or her personal performance criteria reviewed during the Company’s employee performance review process.

MIP Target Rates

After review and consideration of peer group data and discussion with Meridian, the Committee approves target MIP rates for each of our NEOs, expressed as a percentage of base salary. The 2020 target MIP rates for each NEO were as follows:

 

      2020 TARGET MIP RATE

Mr. Yeagy

   100%

Mr. Pettit

     70%

Mr. Smith

     70%

Mr. Page

     70%

Ms. Glazner

     65%

Ms. Margolin

     65%

Mr. Pettit received a target increase from 65% to 70% to recognize his promotion to Chief Financial Officer. Mr. Page and Ms. Glazner also received a target increase (from 65% to 70% and 60% to 65%, respectively) to bring their compensation more in line with the market median. Mr. Taylor was not eligible for a MIP award for 2020 since his employment terminated before the MIP awards were granted.

Performance Metrics and Results for the 2020 MIP Plan

Payouts under our 2020 MIP Plan were based 70% on Operating Income and 30% on Free Cash Flow. The Committee chose these goals because it believes both are important indicators of profitability such that they align participants’ interests with our stockholders’ interests regarding short-term profitability and long-term growth and stock performance. We defined Operating Income and Free Cash Flow under the MIP as follows:

 

 

Operating Income means income from operations as reported in our financial statements

 

 

Free Cash Flow is calculated as our EBITDA minus interest and taxes paid in cash, minus capital expenditures, and plus or minus change in working capital from the beginning of the year to the end of the year (excluding income tax accruals).

The level of achievement of Operating Income and Free Cash Flow for 2020 under the MIP are determined after adjusting results to exclude any cumulative effects of changes in GAAP during the year; cumulative effect of changes in applicable tax laws resulting in a discrete item of tax expense or benefit to the Company during the year; the transaction costs (including legal, due diligence and investment banking expenses) of any merger, acquisition or divestiture consummated during the performance period that has a total purchase or sale price of more than $20 million; any asset write-down or goodwill impairment expense during the performance period that exceeds $3 million; expenses associated with judgements or the settlement of any claims during the performance

 

 

 

40   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Compensation Discussion and Analysis

 

period that exceed $3 million; and the effects of items that are either of an unusual nature or infrequently occurring, as described in Financial Accounting Standards Board Accounting Standards Update No. 2015-01.

Both the Operating Income and the Free Cash Flow performance metrics under the MIP Plan may be achieved at a threshold, target or maximum level. The threshold, target and maximum goals were based on various outcomes considered by the Compensation Committee, with the target amounts reflecting the Company’s operating budget approved by the Board.

Because annual targets for performance goals are set at levels based on our expected financial performance for the year, the Committee believes that paying at 200% of a performance metric’s target for superior performance (set at 125% or greater of the applicable metric under the Board-approved operating budget) provides appropriate incentive to achieve outcomes clearly exceeding target expectations. However, by capping the potential payout at 200% for such superior performance, the Committee believes this reduces the risk that executives might be motivated to pursue excessively high short-term goals to maximize short-term payouts, at the expense of the long-term performance of the Company.

The Committee further believes that threshold amounts, which are set at 75% or greater of the applicable metric under the Board-approved operating budget, represent sufficient performance to warrant incentive compensation, and that a potential payout equal to 35% of target is appropriate for such an achievement level. If the threshold level of performance for a particular goal is not achieved, the payout for that goal is zero. Actual MIP payouts are interpolated for performance between threshold and target or target and maximum.

The chart below details the goals necessary for the NEOs to achieve MIP payout in 2020:

 

(REPORTED
IN MILLIONS)
     THRESHOLD      TARGET      MAXIMUM      ACTUAL

Free Cash Flow
(“FCF”)
30% of MIP Award

     $60.0 million      $80.0 million      $100.0 million      $104.0 million

Corporate Operating Income
(“OI”)
70% of MIP Award

     $93.8 million      $125.0 million      $156.3 million      $22.5 million

Based on the results shown above, the NEOs each received an MIP payout for 2020 equal to 60% of target.

Long-Term Incentive Plan

Our long-term incentive plan, or LTI Plan, is designed to reward our executives, including NEOs, for increasing stockholder value. It is also intended to be used as an attraction and retention tool in recruiting and promoting executive talent.

Consistent with past practice, the Compensation Committee made annual LTI grants to the NEOs in February 2020 after the release of 2019 year-end financial results in connection with a regularly scheduled meeting of the Compensation Committee. For 2020, the Compensation Committee granted a mix of Performance Share Units (PSUs) and Restricted Stock Units (RSUs) to each of the NEOs. The PSUs and RSUs accounted for approximately 60% and 40%, respectively, of the target LTIP award value for each NEO. The Committee believes this mix is appropriate to emphasize its goals of encouraging stock ownership in Wabash National, retaining NEOs in the long-term, focusing NEOs on long-term growth in stockholder value and setting compensation that is reflective of market practice.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   41

 


Table of Contents

Compensation Discussion and Analysis

 

Determining LTI Award Values

In February 2020, the Compensation Committee established the target LTI grant value for each NEO. The Compensation Committee established the LTI grant value for each NEO based on the following factors: level of responsibility, individual performance, peer group data, and the number of shares available under the 2017 Omnibus Incentive Plan. The LTI rate and target grant value that the Compensation Committee established for each of the NEOs in February 2020 was as follows:

 

     

2020

LTI TARGET

GRANT VALUE

Mr. Yeagy

    

$

2,850,000

Mr. Pettit

    

$

815,000

Mr. Smith

    

$

585,000

Mr. Page

    

$

450,000

Ms. Glazner

    

$

375,000

Ms. Margolin

    

$

560,000

Mr. Pettit received a significant increase in LTI target grant value in connection with his promotion to Chief Financial Officer. Mr. Taylor did not receive an LTI grant for 2020 because his employment terminated before the 2020 LTI awards were granted.

Summary of Terms of PSUs and RSUs

The general terms for the PSUs and RSUs awarded to the NEOs in 2020 are listed below:

 

  PSUs RSUs

Performance Metrics

  Relative Total Stockholder Return

  Cumulative Operating EBITDA

  Net Working Capital as a % of Revenue

None

Performance Period

Three years (2020-2022)

None

Vesting Period

Earned awards, if any, vest in full on third anniversary of the grant date Award vests in full on third anniversary of the grant date

Forfeiture/Settlement

Earned only upon achievement of at least threshold performance level, and paid out in Wabash National Common Stock upon vesting Forfeitable until vesting date, at which time they are settled in Wabash National Common Stock

 

 

 

42   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Compensation Discussion and Analysis

 

Performance Share Unit Performance Metrics

For 2020, the Committee decided to keep the performance metrics for the PSUs the same as in 2019: (1) Relative Total Stockholder Return to emphasize the Company’s focus on long-term stockholder value creation, (2) Cumulative Operating EBITDA to encourage growth, and (3) New Working Capital as a % of Revenue to encourage balance sheet discipline and cash management objectives, which were weighted as follows:

 

  METRIC    % OF PSUs BASED ON SUCH METRIC    

Relative Total Stockholder Return (“RTSR”)

   50%

Cumulative Operating EBITDA

   30%

Net Working Capital (“NWC”) as a % of Revenue

   20%

Each of these metrics are independent of the other in calculating whether LTI Plan participants will earn the PSUs attributable to such metric. However, if the price of our common stock increases by more than a multiple of four between the grant date of the award and the settlement date, then the total number of shares issued in settlement of the PSUs will be reduced by taking the number of shares that would otherwise be issued absent any limitation and multiplying it by a fraction, the numerator of which is four times the fair market value of a share on the date of grant of the PSUs, and the denominator of which is the fair market value of a share on the date immediately before settlement of the award.

Relative Total Stockholder Return

RTSR measures our total stockholder return against the total stockholder return of our peers. For the 2020 grants, RTSR will be measured relative to a group of similarly cyclical companies over a three-year period, as the Committee believes this is the fairest way to track and reward Company performance with regard to stockholder return in a highly-cyclical industry. RTSR performance will be measured in relation to the following “Cyclical Peer Group”:

 

Actuant Corporation

   The Greenbrier Companies, Inc.    REV Group, Inc.

Commercial Vehicle Group

   Meritor, Inc.    Ryder Systems, Inc.

Crane Co.

   Modine Manufacturing Co.    Spartan Motors, Inc.

EnPro Industries, Inc.

   Navistar International Corp.    The Manitowoc Company, Inc.

Federal Signal Corp.

   Oshkosh Corp.    The Timken Co.

Flowserve Corporation

   PACCAR Inc.    Trinity Industries, Inc.

The Cyclical Peer Group companies were approved by the Committee following a review of Meridian’s analysis showing stock price correlation among these companies as compared to that of Wabash National. In the event any Cyclical Peer Group company ceases to be an independent, publicly traded company, or enters into a definitive agreement to be acquired by a non-publicly traded company the performance period, then such company will be removed from the Cyclical Peer Group. A Cyclical Peer Group that files for bankruptcy at any time during the performance period will remain in the Cyclical Peer Group but and will be deemed to have a total stockholder return of -100%.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   43

 


Table of Contents

Compensation Discussion and Analysis

 

The Company must achieve an RTSR that puts them at the 25th percentile or above within the Cyclical Peer Group by the end of the three-year performance period for the NEOs to earn at least 50% of the PSUs tied to the RTSR metric. The chart below details the potential RTSR award rates for various percentile ranking. Performance that is between the performance levels set forth above will be interpolated.

 

Wabash Ranking Against Cyclical Peer
Group
           % of PSUs Earned

80th or Greater Percentile

 

          200% (Maximum)

50th Percentile

 

          100% (Target)

25th Percentile

 

          50% (Threshold)

Cumulative Operating EBITDA and NWC as a % of Revenue

The definitions of Cumulative Operating EBITDA and NWC as a % of Revenue are as follows:

 

 

Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, impairment of goodwill or other intangibles and other non-operating income and expense. Cumulative Operating EBITDA Performance is calculated by totaling the Company’s Operating EBITDA results from each of the three-year performance period fiscal years.

 

 

NWC as a % of Revenue measures the Company’s management of cash. It is calculated by taking the average of the following for each of the three years in the performance period: the quotient of (1) the sum of total accounts receivable and inventory, less accounts payable and less customer deposits, divided by (2) net sales.

Cumulative Operating EBITDA and NWC as a % of Revenue will be adjusted to exclude: any cumulative effects of changes in GAAP during the performance period; cumulative effect of changes in applicable tax laws resulting in a discrete item of tax expense or benefit to the Company during the performance period; the transaction costs (including legal, due diligence and investment banking expenses) of any merger, acquisition or divestiture consummated during the performance period that has a total purchase or sale price of more than $30 million; any asset write-down or goodwill impairment expense during the performance period that exceeds $3 million; expenses associated with judgements or the settlement of any claims during the performance period that exceed $3 million; and the effects of items that are either of an unusual nature or infrequently occurring, as described in Financial Accounting Standards Board Accounting Standards Update No. 2015-01.

The chart below shows the level of Cumulative EBITDA performance that is necessary for the NEOs to earn the PSUs tied to such metric:

 

ACTUAL PERFORMANCE AS % OF
TARGET
  % OF PSUs EARNED

115%

 

200% (Maximum)

100%

 

100% (Target)

75%

 

50% (Threshold)

< 75%

 

0

The level of NWC as a % of Revenue performance that is necessary for the NEOs to earn the PSUs tied to such metric are as follows:

 

ACTUAL PERFORMANCE AS % OF
TARGET
  % OF PSUs EARNED

125%

 

200% (Maximum)

100%

 

100% (Target)

85%

 

50% (Threshold)

< 85%

 

0

 

 

 

44   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Compensation Discussion and Analysis

 

The percent of PSUs earned for actual Cumulative EBITDA performance or actual NWC as a % of Revenue performance that is between the performance levels set forth above will be interpolated.

Payout of PSUs for 2018 to 2020 Performance Cycle

The PSUs granted during 2018 were subject to a three-year performance period established by the Compensation Committee in the Company’s 2017 LTI Plan, which ended on December 31, 2020. Under the Company’s 2018 LTI Plan, the Committee established three performance metrics — RTSR, Cumulative EBITDA Performance, and Cumulative Free Cash Flow, weighted at 50%, 30% and 20%, respectively — for measurement over the three-year period. These metrics were independent of the other in calculating whether LTI Plan participants would earn the PSUs tied to such metric. Performance with respect to each of the foregoing metrics was below threshold, resulting in none of the PSUs that were granted during 2018 being earned.

Perquisites

We offer our NEOs various perquisites that the Committee believes, based on its annual compensation review, are reasonable to remain competitive. These perquisites constitute a small percentage of total compensation, and, for 2020, included only executive physicals and a gross up on such benefit. For more information on these perquisites and to whom they are provided, see footnote 3 to the Summary Compensation Table. In addition to the items reported in the Summary Compensation Table, NEOs, as well as other Company employees, are provided access to seats at a local sporting venue for personal use when not occupied for business purposes, in each case at no incremental cost to the Company.

Retirement and Deferred Compensation Benefits

Retirement Benefit Plan

The Company has adopted a Retirement Benefit Plan that is applicable to our NEOs. The purpose of the plan is to clearly define benefits that are to be provided to qualified employees who retire from the workforce after service to the Company. Additional information regarding this Plan, including definitions of key terms and a quantification of retirement benefits, is set forth below in the section entitled Potential Payments on Termination or Change in Control.

Tax-qualified Defined Contribution Plan

We maintain a tax-qualified defined contribution plan in the form of a traditional 401(k) plan with a Roth 401(k) option, either of which is available to a majority of the Company’s employees, including the NEOs. When the Company’s financial performance allows, the Company matches dollar-for- dollar the first 3% of compensation an employee places into these plans, and matches one-half of the next 2% contributed by the employee to the plan, up to federal limits. Any annual Company matches are reported under the “All Other Compensation” column, and related footnote 3 of the Summary Compensation Table.

Deferred Compensation Benefits

We maintain a non-qualified deferred compensation plan that allows eligible highly-compensated employees, including the NEOs, to voluntarily elect to defer receipt of all or a part of their cash compensation (base salary and MIP Plan payouts). The Company matches dollar-for-dollar the first 3% of compensation an employee places into the non-qualified deferred compensation plan, and matches one-half of the next 2% the employee contributes to the plan, up to a maximum of 5% of the participant’s deferred earnings. Any annual Company matches are reported under the “All Other Compensation” column and related footnote 3 of the Summary Compensation Table.

Participants may elect to invest amounts deferred under this program into one or more investment funds available under the plan from time to time. We do not guarantee earnings on any investments or otherwise pay any above

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   45

 


Table of Contents

Compensation Discussion and Analysis

 

market earnings on participants’ accounts. Participants may elect to receive the funds in a lump sum or in up to 10 annual installments following retirement, as well as limited in-service distributions. The deferred compensation plan is unfunded and subject to forfeiture in the event of bankruptcy.

We make the non-qualified deferred compensation plan available to our highly-compensated employees as a means to attract, retain, and motivate employees by providing an additional method to save for retirement and a mechanism to defer taxation on a portion of compensation. Similar deferred benefits are commonly offered by companies with whom we compete for talent.

For additional information, see the Non-Qualified Deferred Compensation Table below.

Severance and Change in Control Benefits

Executive Severance Plan

We maintain the Wabash National Corporation Executive Severance Plan (the “ESP”), which provides severance protections to certain executives who are designated by the Compensation Committee as eligible to participate in the ESP, including all of the NEOs. The ESP is not intended to duplicate any benefits that may be provided under other Company compensation plans or arrangements, but rather to provide benefits to certain executives who agree to execute a release, non-compete, and non-solicitation agreement with the Company upon non-cause based terminations.

During 2020, Mr. Taylor and Ms. Margolin were terminated without “cause” (as defined in the ESP) and thus were entitled to receive benefits under the ESP in connection with their terminations. Information about the benefits that they received in connection with their separations can be found below under the section heading “Potential Payments on Termination or Change in Control.”

For additional information regarding the ESP, including definitions of key terms and benefits, see the section entitled Potential Payments on Termination or Change in Control.

Change in Control Plan

We have adopted a Change in Control Plan applicable to NEOs as well as other executives of the Company, as specifically designated by our Board of Directors. We determined that this plan was appropriate based on the prevalence of similar plans within the market, as well as the dynamic nature of the business environment in which we operate. We also believe the Change in Control Plan is an appropriate tool to motivate executive officers to exhibit the proper behavior when considering potential business opportunities because defining compensation and benefits payable under various merger and acquisition scenarios enable the NEOs to set aside personal financial and career objectives and focus on maximizing stockholder value. Furthermore, the Change in Control Plan encourages continuity of the leadership team through the completion of the change in control because the plan does not provide any benefits as the result of an NEO’s voluntary termination of employment.

Additional information regarding the Change in Control Plan, including definitions of key terms and a quantification of benefits that would be received assuming a triggering event on December 31, 2020, is set forth below in the Potential Payments on Termination or Change in Control — Payment and Benefit Estimates table.

Separations During 2020

Mr. Taylor’s and Ms. Margolin’s employment with the Company terminated on January 16, 2020 and May 28, 2020, respectively. Both were treated as a termination without cause under the ESP and therefore each were eligible to receive compensation and benefits under the ESP.

Pursuant to the terms of the ESP, Mr. Taylor was provided with severance payments equal to 150% of his base salary and target annual incentive award (totaling $1,167,000) to be paid during the 18-month period following his

 

 

 

46   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Compensation Discussion and Analysis

 

departure from the Company, a prorated portion of his annual cash incentive award for 2020 (which equaled $8,409), reimbursement for welfare benefits continuation for 18 months (totaling approximately $34,083), and outplacement services (in an amount of $30,000). Such benefits are contingent on Mr. Taylor continuing to comply with the restrictive covenants in the ESP. Any outstanding equity awards were treated as provided in the applicable plans and award agreements. Under the terms of such agreements, he forfeited all outstanding RSU and PSU awards that were unvested as of his termination date and he remained eligible to exercise his vested stock options for 90 days following his termination.

Ms. Margolin was also entitled to severance payments equal to 150% of her base salary and target incentive award under the terms of the ESP (which would have totaled $1,027,125), but she and the Company mutually agreed that she would take a reduced amount (specifically, $900,000) payable in a lump sum rather than over 18-months. In addition to the $900,000 cash payment, she also received, pursuant to the terms of the ESP, a prorated portion of her annual cash incentive award for 2020 (which equaled $65,890) and outplacement services (in an amount of $45,000). All such benefits are contingent on Ms. Margolin continuing to comply with the restrictive covenants in the ESP. Because she did not participate in our medical plans at the time of her termination, she is not entitled to continued medical coverage. Any outstanding equity awards were treated as provided in the applicable plans and award agreements. Under the terms of such agreements, she forfeited all outstanding RSU and PSU awards that were unvested as of her termination date.

Mr. Taylor and Ms. Margolin each executed a general release of claims and agreed to be subject to a non-compete and non-solicitation agreement in exchange for the above described benefits.

Executive Stock Ownership Guidelines

Our stock ownership guidelines encourage our executive officers to maintain a certain equity stake in the Company, which aligns their interests with those of other stockholders. Our current stock ownership guidelines provide that each executive is required to hold 100% of the net number of Company shares received through the Company’s incentive compensation plans, meaning the total number of shares received less the number of shares that would need to be sold, withheld, or tendered to pay withholding taxes and, if applicable, the exercise price of stock options (the “Executive Holding Requirement”) until the executive achieves the target ownership levels set for his/her position. Once a Company executive has achieved his/her stated target ownership level, s/he is no longer required to adhere to the Executive Holding Requirement, unless and until his/her ownership level falls below the target. The target ownership levels are as follows:

 

CEO

  

Five (5) times base salary

CFO, COO

  

Three (3) times base salary

Other Executive Officers

  

Two-and-one-half (2 12) times base salary

For purposes of calculating target ownership levels, the following types of Company shares are counted: stock owned by the executive (including through retirement plans); vested and unvested restricted stock and restricted stock units; and performance stock units deemed earned, but not yet vested. Company executives are required to comply with the guidelines and the Executive Holding Requirement immediately upon hire or promotion and the Compensation Committee reviews compliance with the guidelines on a periodic basis. As of December 31, 2020, all our NEOs were in compliance with the guidelines, either because each NEO had met his or her target ownership level or because he or she was adhering to the Executive Holding Requirement.

Insider Trading Policy and Anti-Hedging Rules

We maintain an Insider Trading Policy that applies to all our employees, including our NEOs, and directors, which prohibits them from trading in our securities at times when they have material, non-public information about our

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   47

 


Table of Contents

Compensation Discussion and Analysis

 

Company’s affairs. Our Insider Trading Policy also includes anti- hedging rules, which prohibits certain executive officers, including our NEOs, and other employees from engaging in, directly or indirectly:

 

 

selling short our Common Stock;

 

 

pledging of Company securities and/or holding Company securities in margin accounts; and

 

 

transactions in derivative securities (including put and call options), zero-cost collars, equity swaps, exchange funds and forward sale contracts, or any other hedging and/or offsetting transactions regarding our Common Stock that allow the holder to limit or eliminate the risk of a decrease in the value of the Company’s securities.

The following is a list of the specific employees that are covered by the anti-hedging rules in our Insider Trading Policy: (1) all directors and executive officers as defined under Section 16 of the Exchange Act, (2) all direct reports to our CEO, (3) all Directors of Finance for each of our business segments, (4) all Group Presidents and/or General Managers of our financial reporting segments, (5) all Financial Reporting Department employees, (6) all Tax and Treasury Department employees, (7) all employees regularly and routinely involved in corporate-wide business development and/or mergers and acquisitions activities and reviews, and (8) all executive assistants to the CEO, CFO, General Counsel and the Group Presidents or General Managers of the Company’s financial reporting segments. In addition, the Company may deem additional persons to be temporarily subject to the anti-hedging rules based upon certain activities or circumstances in its discretion.

Compensation Risk Assessment

The Board of Directors has concluded that the Company’s compensation policies and practices are not reasonably likely to have a material adverse effect on the Company for the following reasons:

 

 

the performance metrics for determining short-term incentive awards are based on publicly reported metrics and, therefore, are not easily susceptible to manipulation;

 

 

the maximum payouts for short-term incentive awards are capped, thereby reducing the risk that executives might be motivated to pursue excessively high short-term goals to maximize short-term payouts;

 

 

the maximum number of long-term incentive awards that are performance-based are also capped, thereby reducing the risk that executives may be motivated to pursue excessively high performance targets (at the expense of long-term strategic growth) to maximize the number of performance-based awards received; and

 

 

the Company’s stock ownership guidelines incentivize our executives to focus on the Company’s long-term, sustainable growth.

 

 

 

48   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents
 

 

Compensation Committee Report

 

 

The Compensation Committee reviewed and discussed with management the Compensation Discussion and Analysis set forth in this Proxy Statement. Based on the review and discussion, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement and in the Wabash National Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (including through incorporation by reference to this Proxy Statement).

COMPENSATION COMMITTEE

Scott K. Sorensen, Chair

Therese M. Bassett

John G. Boss

John E. Kunz

Larry J. Magee

Ann D. Murtlow

Stuart A. Taylor II

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   49

 


Table of Contents
 

 

Executive Compensation Tables

 

 

In this section, we provide tabular and narrative information regarding the compensation of our NEOs for the fiscal year ended December 31, 2020.

Summary Compensation Table for the Year Ended December 31, 2020

The following table summarizes the compensation of the NEOs for the year ended December 31, 2020 and for the years ended December 31, 2019 and 2018.

 

NAME AND
PRINCIPAL POSITION
  YEAR     SALARY     BONUS     STOCK
AWARDS (1)
    NON-EQUITY
INCENTIVE PLAN
COMPENSATION (2)
    ALL OTHER
COMPENSATION (3)
    TOTAL  

Brent L. Yeagy

President, Chief Executive Officer, Director

 

 

2020

 

 

$

805,385

 

 

$

 

 

$

2,988,258

 

 

$

540,000

 

 

$

71,008

 

 

$

4,404,651

 

 

 

2019

 

 

$

840,000

 

 

$

 

 

$

2,655,572

 

 

$

820,285

 

 

$

78,709

 

 

$

4,394,566

 

 

 

2018

 

 

$

690,666

 

 

$

 

 

$

2,107,578

 

 

$

 

 

$

32,943

 

 

$

2,831,187

 

Michael N. Pettit

Senior Vice President and Chief Financial Officer

 

 

2020

 

 

$

359,500

 

 

$

 

 

$

854,535

 

 

$

163,800

 

 

$

37,414

 

 

$

1,415,249

 

 

 

2019

 

 

$

325,000

 

 

$

 

 

$

408,544

 

 

$

206,292

 

 

$

34,211

 

 

$

974,047

 

 

 

2018

 

 

$

275,000

 

 

$

 

 

$

602,597

 

 

$

 

 

$

20,900

 

 

$

898,497

 

Dustin T. Smith

Senior Vice President, Global Operations

 

 

 

2020

 

 

$

388,154

 

 

$

 

 

$

613,373

 

 

$

174,300

 

 

$

39,398

 

 

$

1,215,225

 

 

 

2019

 

 

$

375,000

 

 

$

 

 

$

547,458

 

 

$

256,339

 

 

$

36,558

 

 

$

1,215,355

 

 

 

2018

 

 

$

355,000

 

 

$

 

 

$

610,338

 

 

$

 

 

$

19,780

 

 

$

985,118

 

Kevin J. Page

Senior Vice President, Customer Value Creation

 

 

 

2020

 

 

$

322,308

 

 

$

 

 

$

471,834

 

 

$

147,000

 

 

$

35,426

 

 

$

976,568

 

 

 

2019

 

 

$

290,000

 

 

$

 

 

$

398,336

 

 

$

184,076

 

 

$

33,063

 

 

$

905,475

 

 

 

2018

 

 

$

275,000

 

 

$

 

 

$

439,847

 

 

$

 

 

$

69,104

 

 

$

783,951

 

M. Kristin Glazner

Senior Vice President,
General Counsel,
Corporate Secretary,
and Chief Human
Resources Officer

 

 

2020

 

 

$

341,423

 

 

$

 

 

$

393,205

 

 

$

142,350

 

 

$

28,949

 

 

$

905,927

 

Jeffery L. Taylor

Former Senior Vice President, Chief Financial Officer

 

 

2020

 

 

$

24,661

 

 

$

 

 

$

 

 

$

8,409

 

 

$

789,903

 

 

$

822,973

 

 

 

2019

 

 

$

458,000

 

 

$

 

 

$

837,523

 

 

$

313,076

 

 

$

44,379

 

 

$

1,652,978

 

 

 

2018

 

 

$

440,000

 

 

$

 

 

$

927,264

 

 

$

 

 

$

20,975

 

 

$

1,388,239

 

Melanie D. Margolin

Former Senior Vice President, General Counsel, and Corporate Secretary

 

 

2020

 

 

$

179,077

 

 

$

 

 

$

587,163

 

 

$

65,890

 

 

$

951,548

 

 

$

1,783,678

 

 

 

 

2019

 

 

 

 

$

400,000

 

 

$

      —

 

 

$

526,010

 

 

$

253,898

 

 

$

1,820

 

 

$

1,181,728

 

 

(1)

Amounts represent the aggregate grant date fair value of grants of RSUs and PSUs made to each NEO during 2020 under the Company’s 2020 LTI Plan, as computed in accordance with FASB ASC Topic 718, which (1) excludes the effect of estimated forfeitures and (2) assumes that the PSUs are earned at Target. The amounts shown for the PSU awards at the “Target” performance levels are as follows: Mr. Yeagy – $1,848,253; Mr. Pettit – $528,533; Mr. Smith – 379,378; Mr. Page – $291,835; Ms. Glazner – $243,200; and Ms. Margolin – $363,162. If the Company achieves “Maximum” performance levels for both PSU performance metrics, then the value of the PSUs would be as follows: Mr. Yeagy – $3,419,990; Mr. Pettit – $977,992; Mr. Smith – $701,997; Mr. Page – $540,009; Ms. Glazner – $450,016; and Ms. Margolin – $671,991. Further information regarding the valuation of equity awards can be found in Note 15 to our Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2020. Note that Ms. Margolin forfeited all awards granted during 2020 upon her termination of employment. We did not grant Mr. Taylor any equity awards during 2020 because his employment terminated before the annual grant date.

 

(2)

Represents amounts paid pursuant to our MIP Plan.

 

 

 

50   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Executive Compensation Tables

 

(3)

Amounts in this column consist of the following amounts:

 

NAME   

COMPANY
CONTRIBUTIONS
TO DEFINED
CONTRIBUTION
PLANS

(a)

    

EXECUTIVE
PHYSICAL

(b)

     SEVERANCE
(c)
     TOTAL ALL OTHER
COMPENSATION
 

Brent L. Yeagy

  

$

66,135

 

  

$

4,873

 

  

$

 

  

$

71,008

 

Michael N. Pettit

  

$

32,551

 

  

$

4,863

 

  

$

 

  

$

37,414

 

Dustin T. Smith

  

$

34,533

 

  

$

4,865

 

  

$

 

  

$

39,398

 

Kevin J. Page

  

$

30,561

 

  

$

4,865

 

  

$

 

  

$

35,426

 

Kristin M. Glazner

  

$

23,979

 

  

$

4,970

 

  

$

 

  

$

28,949

 

Melanie D. Margolin

  

$

6,548

 

  

$

 

  

$

945,000

 

  

$

951,548

 

Jeffery L. Taylor

  

$

986

 

  

$

 

  

$

788,917

 

  

$

789,903

 

 

(a)

Includes Company matches of amounts deferred by an NEO into the Company’s 401(k) and non-qualified deferred compensation plans.

 

(b)

Includes a tax gross up on the reimbursement of the executive physical for the following amounts: Mr. Yeagy – $873; Mr. Pettit – $863; Mr. Smith – $865; Mr. Page – $865; Ms. Glazner – $970.

 

(c)

Includes the cash severance and benefits continuation paid during 2020. The total amount of severance due to Ms. Margolin and Mr. Taylor is described below under the heading “Potential Payments on Termination or Change in Control – Payment and Benefit Estimates.”

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   51

 


Table of Contents

Executive Compensation Tables

 

Grants of Plan-Based Awards for the Year Ended December 31, 2020

The following table summarizes the awards we made under our MIP Plan and LTI Plan to our NEOs in 2020. We did not grant any awards to Mr. Taylor in 2020 since his employment terminated before the date we grant our awards, so he is excluded from the table below.

 

       

 

ESTIMATED POSSIBLE PAYOUTS
UNDER NON-
EQUITY INCENTIVE PLAN AWARDS

(1)

     

 

ESTIMATED FUTURE PAYOUTS
UNDER EQUITY INCENTIVE

PLAN AWARDS

(2)

 

ALL OTHER
STOCK
AWARDS:
NUMBER OF
SHARES OF
STOCK
OR UNITS
(3)

(#)

 

GRANT
DATE
FAIR VALUE
OF
STOCK AND
OPTION
AWARDS (4)

($)

  NAME   GRANT
DATE
(1)
 

THRESHOLD
($)

(35%)

 

TARGET
($)

(100%)

 

MAXIMUM
($)

(200%)

      

THRESHOLD
(#)

(50%)

 

TARGET
(#)

(100%)

 

MAXIMUM
(#)

(200%)

Brent L. Yeagy

     

 

 

 

 

 

    $ 315,000     $ 900,000       $ 1,800,000        

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      68,785       137,570       275,140      

 

 

 

 

 

    $ 1,848,253
 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      91,714     $ 1,140,005

Michael N. Pettit

     

 

 

 

 

 

    $ 95,550     $ 273,000       $ 546,000        

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      19,670       39,340       78,680      

 

 

 

 

 

    $ 528,533
 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      26,227     $ 326,002

Dustin T. Smith

     

 

 

 

 

 

    $ 101,675     $ 290,500       $ 581,000        

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      14,119       28,238       56,476      

 

 

 

 

 

    $ 379,378
 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      18,825     $ 233,995

Kevin J. Page

     

 

 

 

 

 

    $ 85,750     $ 245,000       $ 490,000        

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      10,861       21,722       43,444      

 

 

 

 

 

    $ 291,835
 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      14,481     $ 179,999

M. Kristin Glazner

     

 

 

 

 

 

    $ 83,038     $ 237,250       $ 474,500        

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      9,051       18,102       36,204      

 

 

 

 

 

    $ 243,200
 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      12,068     $ 150,005

Melanie D. Margolin

     

 

 

 

 

 

    $ 94,413     $ 269,750       $ 539,500        

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      13,516       27,031       54,062      

 

 

 

 

 

    $ 363,162
 

 

      2/19/2020      

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

      18,021     $ 224,001

 

(1)

These columns show the range of cash payouts under our 2020 MIP Plan as described in the section titled “Short-Term Incentive Plan” in the CD&A.

 

(2)

Represents the potential payout range of PSUs granted in 2020 pursuant to the 2017 Omnibus Incentive Plan.

 

(3)

Represents the number of RSUs granted in 2020 pursuant to the 2017 Omnibus Incentive Plan.

 

(4)

The amounts shown in this column represent the grant date fair market value of the PSUs and RSUs, as determined pursuant to FASB ASC Topic 718, excluding the effect of estimated forfeitures. The amount reported for the PSUs represents the grant date fair value assuming the target performance goals were met.

 

 

 

52   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Executive Compensation Tables

 

Outstanding Equity Awards at Fiscal Year-End December 31, 2020

The following table summarizes all equity awards that were granted in 2020 and prior years that remain outstanding as of December 31, 2020. Neither Mr. Taylor nor Ms. Margolin had any equity awards outstanding as of December 31, 2020, so they are excluded from the table below.

 

NAME

  GRANT
DATE
  NUMBER OF
SECURITIES
UNDERLYING
UNEXERCISED
OPTIONS
EXERCISABLE
(#)
  NUMBER OF
SECURITIES
UNDERLYING
UNEXERCISED
OPTIONS
UNEXERCISABLE
(#)
  OPTION
EXERCISE
PRICE
  OPTION
EXPIRATION
DATE
 

NUMBER OF
SHARES OR
UNITS OF
STOCK
THAT

HAVE NOT
YET
VESTED

(#) (1)

 

MARKET
VALUE OF
SHARES OF
STOCK
THAT

HAVE NOT
VESTED

($) (2)

 

EQUITY
INCENTIVE
PLAN
AWARDS:
NUMBER OF
UNEARNED
SHARES,
UNITS OR
OTHER
RIGHTS
THAT HAVE
NOT
VESTED

(#) (3)

 

EQUITY
INCENTIVE
PLAN
AWARDS:
MARKET OR
PAYOUT
VALUE OF
UNEARNED
SHARES,
UNITS OR
OTHER
RIGHTS
THAT HAVE
NOT YET
VESTED

($) (2)

Brent L. Yeagy

   

 

2/23/2012

   

 

19,810

   

 

   

$

10.85

   

 

2/23/2022

   

 

   

 

   

 

   

 

   

 

2/19/2014

   

 

8,170

   

 

   

$

13.32

   

 

2/19/2024

   

 

   

 

   

 

   

 

   

 

2/17/2015

   

 

11,380

   

 

   

$

14.16

   

 

2/17/2025

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

195,531

   

$

3,392,463

   

 

242,762

   

$

4,211,921

Michael N. Pettit

   

 

2/19/2014

   

 

510

   

 

   

$

13.32

   

 

2/19/2024

   

 

   

 

   

 

   

 

   

 

2/17/2015

   

 

1,500

   

 

   

$

14.16

   

 

2/17/2025

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

50,872

   

$

882,629

   

 

55,523

   

$

963,324

Dustin T. Smith

   

 

2/19/2014

   

 

767

   

 

   

$

13.32

   

 

2/19/2024

   

 

   

 

   

 

   

 

   

 

2/17/2015

   

 

1,500

   

 

   

$

14.16

   

 

2/17/2025

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

42,103

   

$

730,487

   

 

49,924

   

$

866,181

Kevin J. Page

   

 

   

 

   

 

   

 

   

 

   

 

31,356

   

$

544,027

   

 

37,501

   

$

650,642

M. Kristin Glazner

   

 

2/17/2015

   

 

750

   

 

   

$

14.16

   

 

2/17/2025

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

26,810

   

$

465,154

   

 

27,611

   

$

479,051

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   53

 


Table of Contents

Executive Compensation Tables

 

(1)

This column includes all outstanding RSUs. The vesting dates of these awards are as follows:

 

NAME

   VESTING DATE      NUMBER OF UNITS

Brent L. Yeagy

  

 

2/21/2021

 

  

 

18,151

 

  

 

6/2/2021

 

  

 

15,538

 

  

 

2/21/2022

 

  

 

70,128

 

  

 

2/19/2023

 

  

 

91,714

 

Michael N. Pettit

  

 

1/1/2021

 

  

 

7,500

 

  

 

2/21/2021

 

  

 

6,356

 

  

 

2/21/2022

 

  

 

10,789

 

  

 

2/19/2023

 

  

 

26,227

 

Dustin T. Smith

  

 

2/21/2021

 

  

 

8,821

 

  

 

2/21/2022

 

  

 

14,457

 

  

 

2/19/2023

 

  

 

18,825

 

Kevin K. Page

  

 

2/21/2021

 

  

 

6,356

 

  

 

2/21/2022

 

  

 

10,519

 

  

 

2/19/2023

 

  

 

14,481

 

M. Kristin Glazner

  

 

2/21/2021

 

  

 

3,403

 

  

 

11/12/2021

 

  

 

5,000

 

  

 

2/21/2022

 

  

 

6,339

 

  

 

2/19/2023

 

  

 

12,068

 

 

(2)

Market value is equal to the closing price of our common stock on December 30, 2020 (the last trading day of the year) as reported on the NYSE ($17.35 per share), times the number of unvested shares.

 

(3)

The number of PSUs shown in this column reflects the target performance level for the 2019 awards and the target performance level for the 2020 awards in accordance with SEC regulations requiring that the number of PSUs shown be based on achieving threshold performance goals or, if the previous fiscal year’s performance has exceeded the threshold, the next higher performance measure (target or maximum) that exceeds the previous fiscal year’s performance. The vesting dates for these awards are as follows:

 

NAME

   VESTING DATE      NUMBER OF UNITS

Brent L. Yeagy

  

 

2/21/2022

 

  

 

105,192

 

  

 

2/19/2023

 

  

 

137,570

 

Michael N. Pettit

  

 

2/21/2022

 

  

 

16,183

 

  

 

2/19/2023

 

  

 

39,340

 

Dustin T. Smith

  

 

2/21/2022

 

  

 

21,686

 

  

 

2/19/2023

 

  

 

28,238

 

Kevin K. Page

  

 

2/21/2022

 

  

 

15,779

 

  

 

2/19/2023

 

  

 

21,722

 

M. Kristin Glazner

  

 

2/21/2022

 

  

 

9,509

 

  

 

2/19/2023

 

  

 

18,102

 

 

 

 

54   2021 Proxy Statement   WABASH NATIONAL CORPORATION

 


Table of Contents

Executive Compensation Tables

 

Option Exercises and Stock Vested During 2020

The following table sets forth information concerning the exercise of options and the vesting of stock awards during 2020 by each of the NEOs:

 

     OPTION AWARDS        STOCK AWARDS

NAME

  

NUMBER OF
SHARES
ACQUIRED ON
EXERCISE

(#)

  

VALUE
REALIZED
ON EXERCISE

($) (1)

       

NUMBER OF
SHARES
ACQUIRED ON
VESTING

(#)

   VALUE
REALIZED
ON VESTING
($) (2)

Brent L. Yeagy

                               26,126      $ 325,007

Michael N. Pettit

                               6,218      $ 77,352

Dustin T. Smith

                               17,703      $ 216,550

Kevin K. Page

                               12,600      $ 153,069

M. Kristin Glazner

                               3,204      $ 39,858

Jeffery L. Taylor

       24,170      $ 88,089                        

 

(1)

Calculated as the number of shares received on exercise multiplied by the difference between the market price of our stock at the time of exercise and the exercise price of the options.

(2)

Calculated as the number of shares vested multiplied by the market price of stock on the date of vesting.

Non-Qualified Deferred Compensation

The table below sets forth, for each NEO, information regarding participation in our non-qualified deferred compensation plan.

 

NAME

   EXECUTIVE
CONTRIBUTION
(IN LAST FY) (1)
   REGISTRANT
CONTRIBUTION
(IN LAST FY) (2)
   AGGREGATE
EARNINGS
(IN LAST FY)
(3)
     AGGREGATE
WITHDRAWALS/ DISTRIBUTIONS
   AGGREGATE
BALANCE
(AT LAST
FYE) (4)

Brent L.
Yeagy

     $ 95,419      $ 54,735      $ 151,230        $ 92,158      $ 1,497,804

Michael N.
Pettit

     $ 154,894      $ 21,151      $ 71,446        $ 191,144      $ 408,192

Dustin T.
Smith

     $ 28,917      $ 23,133      $ 111,964        $ 57,718      $ 813,318

Kevin J.
Page

     $ 46,001      $ 19,161      $ 31,919               $ 224,052

M. Kristin
Glazner

     $ 14,002      $ 12,579      $ 25,946               $ 172,835

Jeffery L.
Taylor

     $ 3,699      $ 986      $ 58,842        $ 860,060      $ 4,653

Melanie D.
Margolin

                                    

 

(1)

Amounts reflected in this column represent a portion of each NEO’s salary deferred in 2020. It also reflects the portion of the MIP award earned in 2020, but not paid until 2021, that each NEO elected to defer. 100% of these amounts are also included in the “Salary” and “Non-Equity Incentive Plan Compensation” columns in the Summary Compensation Table.

 

(2)

Represents Company matching contributions. 100% of these amounts are also included in the Summary Compensation Table under the “All Other Compensation” column.

 

(3)

Amounts reflected in this column include changes in plan values during the last fiscal year, as well as any dividends and interest earned by the plan participant with regard to the investment funds chosen by such participant during the fiscal year. No portion of this amount was reported in the Summary Compensation Table for 2020.

 

 

 

WABASH NATIONAL CORPORATION   2021 Proxy Statement   55

 


Table of Contents

Executive Compensation Tables

 

(4)

The following represents the extent to which the amounts that are reported in this aggregate balance column were previously reported as compensation to our NEOs in our Summary Compensation Table in years prior to 2020:

 

NAME

   PRIOR YEARS
($)
 

Brent L. Yeagy

  

$

604,012

 

Michael N. Pettit

  

$

168,997

 

Dustin T. Smith

  

$

171,553

 

Kevin J. Page

  

$

24,750

 

M. Kristin Glazner

  

$

 

Jeffery L. Taylor

  

$

530,168

 

Melanie D. Margolin

  

$

 

Potential Payments on Termination or Change in Control

The section below describes the payments that may be made to NEOs in connection with a change in control or pursuant to certain termination events in 2020.

Retirement Benefit Plan

The Company maintains a Retirement Benefit Plan that is applicable to all employees, including our NEOs. The Plan provides that Retirees (as defined below) will receive the following benefits upon his or her retirement: