8-KLeadership ChangesExhibits & Filings

WASTE MANAGEMENT INC 8-K Report, Executive Changes (Mar 12, 2014)

Filed March 12, 2014For Securities:WM

Summary

Waste Management, Inc. (WM) filed an 8-K on March 12, 2014, to report on compensatory arrangements for its named executive officers. Effective March 7, 2014, the Management Development and Compensation Committee granted equity awards under the 2009 Stock Incentive Plan. These awards include performance share units (PSUs) and stock options designed to incentivize and retain key leadership. The PSUs are tied to specific performance metrics, with 50% linked to adjusted free cash flow and the other 50% to total shareholder return relative to the S&P 500, payable after the 2016 fiscal year-end. Stock options were also granted with a three-year vesting schedule and a 10-year term, exercisable at the fair market value on the grant date. These arrangements aim to align executive interests with those of shareholders.

Key Highlights

  • 1Waste Management granted equity awards (Performance Share Units and Stock Options) to its named executive officers on March 7, 2014.
  • 2The awards are made under the Company's 2010 Stock Incentive Plan.
  • 3Performance Share Units (PSUs) have a performance calculation date of December 31, 2016.
  • 4PSU performance will be measured by 50% adjusted free cash flow and 50% total shareholder return relative to the S&P 500.
  • 5Stock options have a 10-year term and vest over three years (25% annually).
  • 6The exercise price for stock options is $41.37, the fair market value on the grant date.

Frequently Asked Questions

The named executive officers received both Performance Share Units (PSUs) and Stock Options.

PSUs will be earned based on two equally weighted performance measures: 50% tied to the company's adjusted free cash flow and 50% tied to total shareholder return relative to the S&P 500. The payout will occur after the 2016 fiscal year-end.

The stock options vest over a three-year period, with 25% vesting on the first anniversary of the grant date, another 25% on the second anniversary, and the remaining 50% on the third anniversary.

The exercise price for the stock options is $41.37, which was the fair market value of the company's common stock on the date of grant.