SEC Filings

DEFR14A
RELIANCE STEEL & ALUMINUM CO filed this Form DEFR14A on 04/08/2019
Entire Document
 

Elements of Compensation

A summary of the main elements of our executive compensation program is set forth below:

Element

    

Type

    

Description

Cash

 

Base salaries (see page 34)

The only component comprised of fixed cash compensation.

Base salaries for our NEOs approximate the market median paid to comparable officers in our executive compensation peer group.

 

 

Annual performance-based cash incentive awards (see page 34)

The 2018 annual cash incentive plan opportunity was established on a sliding scale, ranging from zero for results below the 3% pretax income margin threshold, 20% of base salary for results at the 3% pretax income margin threshold, a target of 150% of base salary at 5.75% pretax income margin and up to a maximum of 300% of base salary for pretax income margin of 8.5% or higher.

2018 pretax income margin was 7.5%, which resulted in each NEO receiving 245% of base salary.

Target annual cash incentive opportunities for our CEO approximate median opportunities available to chief executives in our executive compensation peer group.

To promote internal equity as well as reinforce an executive team concept, target annual cash incentive opportunities for other NEOs are based on the same salary percentages as the CEO.

Long-Term Equity Compensation

 

Restricted stock unit awards (see page 35)

 

In 2018, 80% of the restricted stock unit awards granted to our former CEO were performance-based. They will only vest if the Company achieves specific ROA for the performance period. The vesting for the remaining 20% of our former CEO's restricted stock unit awards granted in 2018 is dependent only on his continued service during the three-year period.

 

 

 

In 2018, 60% of the restricted stock unit awards granted to the other NEOs were performance-based and subject to the same three-year ROA performance objectives. The vesting for the remaining 40% of the restricted stock unit awards is dependent only on the NEOs’ continued service during the three-year period.

In 2018, values of restricted stock unit awards granted to our NEOs was above the median but below the 75th percentile of equity awards granted to comparable officers in our executive compensation peer group.

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