Compensation Committee Charter
Approved by the Board of Directors on December 7, 2015
The primary objective of the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Omega Protein Corporation (“the Company”) is to ensure the Company’s compensation policies and practices support the successful recruitment, development and retention of executive talent in order to achieve the Company’s business objectives and optimize long-term financial returns.
The Committee shall meet as often as may be deemed necessary or appropriate, and generally shall meet at least two times annually. The Committee may ask members of management or others to attend meetings or to provide relevant information. The Committee shall meet in executive session absent management as necessary or appropriate. The Committee may determine its own rules of procedure and may meet where and as provided by such rules or by resolution of the Committee.
- Provide direction to the Company in connection with executive compensation and benefits for the executive team.
Prepare the Compensation Committee report as required by Item 407(e)(5) of Regulation S-K to be included in the Company’s proxy statement or annual report on Form 10-K, as applicable, in accordance with applicable rules and regulations.
Review and discuss with Company’s management the Compensation Discussion Analysis (“CD&A”) to be included in the Company’s proxy statement or annual report on Form 10-K, as applicable, and determine whether to recommend to the Board that the CD&A be included in the proxy statement or annual report on Form 10-K, as applicable, in accordance with applicable rules and regulations.
Review and approve corporate goals and individual performance relevant to the compensation of the CEO.
Evaluate the CEO’s performance and achievement of corporate goals, either as a committee or together with other independent directors, and make recommendations to the Board on the CEO’s compensation level based on such evaluation.
After considering the recommendations of the CEO, review the compensation structure and make recommendations to the Board for the compensation of the Section 16 officers of the Company, as well as any other senior employee who may be designated by the Committee.
Approve, on behalf of the Board, or at the Committee’s option, recommend to the Board for approval, employment agreements or similar arrangements, or amendments to existing employment agreements or similar arrangements, for officers or other key employees of the Company.
Evaluate and make recommendations to the Board with respect to the adoption, substantive modification, or termination of any executive benefit plan of the Company.
Administer any incentive or equity-based compensation plans approved by the Board, whether in existence or created in the future, in accordance with the responsibilities assigned to the Committee under such plans.
Make recommendations to the Board for the compensation of the Company’s independent directors for the Board’s review and approval.
Ensure that shareholders are given the opportunity to vote on equity-compensation plans, as may be required by law and the listing standards of the Exchange.
Review and recommend to the Board how frequently the Company should permit shareholders to have an advisory vote on the executive compensation (“say-on-pay”). This review should take into account the historical results of shareholder advisory votes on frequency of say-on-pay resolutions at the Company.
Following each shareholder meeting at which say-on-pay resolutions are proposed for a shareholder advisory vote, review the results of the advisory vote and consider whether to make any adjustments to the Company’s executive compensation policies and practices.
The Committee will conduct an evaluation of the Committee’s performance at least annually and review this Charter periodically, and will report to the Board any recommended changes to this Charter.
- The provision of other services to the Company by the person that employs the compensation consultant, legal counsel or other advisor;
- The amount of fees received from the Company by the person that employs the compensation consultant, legal counsel or other advisor, as a percentage of the total revenue of the person that employs the compensation consultant, legal counsel or other advisor;
- The policies and procedures of the person that employs the compensation consultant, legal counsel or other advisor that are designed to prevent conflicts of interest;
- Any business or personal relationship of the compensation consultant, legal counsel or other advisor with a member of the compensation committee;
- Any stock of the Company owned by the compensation consultant, legal counsel or other advisor; and
- Any business or personal relationship of the compensation consultant, legal counsel, other advisor or the person employing the advisor with an executive officer of the Company.
This Charter will be made available on the Company’s website.
STEPHEN C. BRYAN has been a director of the Company since June 2014. Mr. Bryan currently manages his personal investments. Mr. Bryan served as the President and Chief Executive Officer of Delavau, LLC, a vitamin and mineral supplement and technology-based food ingredient manufacturer, from 2003 to March 2013 and was responsible for directing all aspects of Delavau's business with a focus on sales, operations and product development. Prior thereto, Mr. Bryan was President of the Great Lakes Division of TCI/AT&T Broadband, a cable, telecommunications and internet service company, and President of Entenmann's Bakery Company, a fresh baked goods manufacturing company. Mr. Bryan also has more than twenty years of general management and marketing experience with Kraft Foods, General Foods, and Frito-Lay. Mr. Bryan also served as a pilot for the U.S. Navy.
DR. GARY L. ALLEE has been a director of the Company since May 1998. For more than twenty years, Dr. Allee was Professor of Swine Nutrition at the University of Missouri, a position from which he retired in 2010. Dr. Allee has also served as President and as a member of the Board of Directors of the Midwest Section of the American Society of Animal Science. Dr. Allee has B.S. and M.S. degrees in Animal Husbandry and Swine Nutrition from the University of Missouri and a Ph.D. in Nutritional Sciences from the University of Illinois.
DAVID H. CLARKE, age 75, served from 1989 through 1995, as Executive Chairman of International Proteins Corporation, subsequently Marine Harvest International, Inc., an American Stock Exchange listed company, then one of the largest aquaculture companies in the world engaged in fishing for menhaden, sardines and anchovies in the United States and Panama, and the production, distribution and trading of fishmeal and fish oil worldwide, as well as farming Atlantic salmon in Scotland and Chile and shrimp in Ecuador. Prior thereto, Mr. Clarke was President and Chief Executive Officer of his family’s menhaden fish meal business, Seacoast Products, Inc., which had operations in Cameron, Louisiana, Intracoastal City, Louisiana, Morgan City, Louisiana, Moss Point, Mississippi, Port Monmouth New Jersey and Beaufort North Carolina. Seacoast Products, Inc. was sold to Hanson plc in 1973 and was subsequently sold to Zapata Corporation, the predecessor of Omega Protein Corporation. Currently, Mr. Clarke is the Chief Executive Officer of GSB Holdings, Inc., a subsidiary of his family’s private business engaged in real estate development and investments. From 1995 to July 2016, Mr. Clarke was on the board and Audit Committee of Fiduciary Trust Company International, a money manager, which is a subsidiary of NYSE listed Franklin Resources, Inc. Since January 2016, Mr. Clarke has served as President and Chief Executive Officer of Monster Digital, Inc., a company engaged in the consumer electronics business. From June 2010 until October 2014, Mr. Clarke served as Chairman of Hong Kong based United Pacific Industries, Limited, a company listed on the Hong Kong Stock Exchange. Mr. Clarke served as the Chairman and Chief Executive Officer of NYSE listed Jacuzzi Brands, Inc., a multi-billion dollar international conglomerate, from June 1995 until October 2006. Prior thereto, Mr. Clarke was Vice Chairman of Hanson plc, a diversified multi- billion dollar conglomerate listed on the London Stock Exchange, with oversight responsibility for the acquisition, operation and disposition of numerous public and private companies. Mr. Clarke received a BA degree from Hobart College in 1965.
DAVID W. WEHLMANN has been a director of the Company since April 2012. Mr. Wehlmann is currently a business consultant and private investor. Mr. Wehlmann served as Executive Vice President, Investor Relations of Precision Drilling Corporation, a publicly traded oilfield services company, until March 2012. He assumed this position in December 2008 upon the acquisition of Grey Wolf, Inc. by Precision Drilling Corporation. Mr. Wehlmann previously served as Executive Vice President, Chief Financial Officer and Secretary of Grey Wolf, Inc., a publicly traded oilfield services company, from March 2003. He was Senior Vice President, Chief Financial Officer and Secretary of Grey Wolf, Inc. from February 1998 to March 2003. He joined Grey Wolf in July 1996 and served as Vice President and Controller. Mr. Wehlmann has served as a director of Xtreme Drilling and Coil Services Corp., a publicly traded Canadian-based land rig drilling contractor, since May 2013, and as a director of Paragon Offshore plc, a publicly traded provider of offshore drilling services, from August 2014 to November 2016 Mr. Wehlmann is a Certified Public Accountant.