VECTRUS, INC. (NYSE:VEC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02. Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.
(the Committee) of the Board of Directors of Vectrus, Inc. (the
Company) approved the performance metrics shown below for 2017
under the Companys Annual Incentive Plan for Executive Officers,
as amended and restated as of January 1, 2016 (the Plan). For
2017, the Committee expanded the New Business metric, which will
include (i) any new business contract award notifications from
January 1, 2017 through December 31, 2017, (ii) any contract
revenue extensions, which include contract modification additions
in the calendar year that increase the Companys backlog (not
Indefinite Delivery Indefinite Quantity (IDIQ) ceiling vehicles),
new tasks on IDIQ contract vehicles, contract extensions which
increase the Companys backlog excluding extensions relating to an
award protest by the Company and (iii) any contract recompete
award notifications from January 1, 2017 through December 31,
2017. If not awarded by the government procurement office in the
calendar year, the recompete award value is excluded from the
performance metric (goal). This metric is designed to incentivize
winning 50% of the Companys recompetes in a calendar year if the
decision is made in the year. The metric includes the Operations
Maintenance and Supply – Europe, Qatar Base Operations Support
Services and Maxwell Air Force Base Operations Support
recompetes.
weightings for 2017 under the Plan:
|
2017 Performance Measures
|
Performance Weighting
|
|
Revenue
|
10%
|
|
New Business (1)
|
20%
|
|
Earnings per Share
|
40%
|
|
Cash
Net Cash Provided by Operating Activities
Days Sales Outstanding (2)
|
10%
20%
|
|
(1)
|
New Business award and recompete award values are computed
on an annualized total contract value basis. |
|
(2)
|
Days sales outstanding is defined as the number of days it
takes to turn accounts receivable into cash. |
opportunities approved by the Committee for the executive
officers named in the Companys 2016 Proxy Statement and our
current President and Chief Executive Officer. Non-executive
officers and non-management directors do not receive awards under
the Plan.
|
Individual (Current Position) (1)
|
Target Award Opportunity ($)(2)
|
Maximum Award Opportunity ($)
|
|
Charles L. Prow
President and Chief Executive Officer
|
600,000
|
1,200,000
|
|
Matthew M. Klein
Senior Vice President and Chief Financial Officer
|
217,800
|
435,600
|
|
Michele L. Tyler
Senior Vice President, Chief Legal Officer and
Corporate Secretary |
169,100
|
338,200
|
|
(1)
|
Kenneth W. Hunzeker, Theodore R. Wright, Janet L. Oliver
and Charles A. Anderson, former executive officers, are no longer employed by the Company and are not eligible for an award for 2017. |
|
(2)
|
The approved 2017 formula under the Plan is based on
performance measures and goals that will pay 95% of target for 50% achievement of the approved goals. |
for Charles L. Prow, the Companys President and Chief Executive
Officer, in the amount of $3,000 per month. Mr. Prow, who was
hired in December 2016 and works primarily at the Companys
Reston, Virginia office, is expected to spend a substantial
amount of time in Colorado Springs, Colorado (the location of the
Companys headquarters). The Committee approved the housing
allowance, which will not be grossed up for taxes, following the
Companys cost analysis that indicated that the allowance would be
less expensive than estimated hotel costs for his visits to
Colorado Springs. The Company previously paid a total of $2,827
for a short-term apartment rental in Colorado Springs in 2017.
About VECTRUS, INC. (NYSE:VEC)
Vectrus, Inc. is a provider of services to the United States Government across the world. The Company offers services, including infrastructure asset management, logistics and supply chain management, and information technology and network communication. Its infrastructure asset management services support the United States Army, Air Force and Navy, and include infrastructure services, security, warehouse management and distribution, ammunition management, civil engineering, air base maintenance and operations, communications, emergency services, transportation, and life support activities at various global military installations. Its logistics and supply chain management services support and maintain the vehicle and equipment stocks of the United States Army and Marine Corps. Its information technology and network communication services consist of sustainment of communications systems, network security, systems installation and life cycle management of information technology systems. VECTRUS, INC. (NYSE:VEC) Recent Trading Information
VECTRUS, INC. (NYSE:VEC) closed its last trading session up +0.55 at 24.76 with 134,341 shares trading hands.
