Summary
This 8-K filing from D.R. Horton, Inc. (DHI) details the outcomes of its Annual Stockholder Meeting held on January 20, 2011. The most significant event for investors is the stockholder approval of the amended and restated 2006 Stock Incentive Plan (AR 2006 Plan). This plan introduces new performance criteria, including gross profit/percentage, income/pre-tax income percentage, and SG&A expense management, which are crucial for aligning executive compensation with company performance. Additionally, the plan increases the number of shares available for awards to participants and non-employee directors, signaling a continued focus on equity-based incentives.
Key Highlights
- 1Stockholders approved the D.R. Horton, Inc. 2006 Stock Incentive Plan, as amended and restated (AR 2006 Plan), on January 20, 2011.
- 2The AR 2006 Plan adds 'gross profit or gross profit percentage,' 'income or pre-tax income percentage,' and 'selling, general and administrative expense improvement or containment' as qualifying performance criteria.
- 3The maximum number of shares that can be granted to a participant annually under the plan increased from 500,000 to 750,000.
- 4The maximum number of shares that can be granted to any one non-employee director annually increased from 10,000 to 15,000.
- 5All six director nominees were elected to hold office until the 2012 Annual Meeting.
- 6PricewaterhouseCoopers LLP was ratified as the Company's independent registered public accounting firm for fiscal year 2011.
- 7A stockholder proposal concerning greenhouse gas emissions was voted against by the stockholders.
Frequently Asked Questions
The primary changes to the 2006 Stock Incentive Plan, now referred to as the AR 2006 Plan, include the addition of gross profit/percentage, income/pre-tax income percentage, and SG&A expense improvement/containment as qualifying performance criteria. It also increases the maximum number of shares that can be granted annually to participants (from 500,000 to 750,000) and non-employee directors (from 10,000 to 15,000).
The AR 2006 Plan is significant because it links executive compensation more directly to key financial and operational performance metrics like profitability and expense management. The increased share pool suggests the company plans to continue using equity incentives to retain and motivate its key personnel.
Yes, besides the incentive plan, stockholders elected all six director nominees, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for fiscal year 2011, and voted against a stockholder proposal regarding greenhouse gas emissions.