Daily NewsView All News
Kforce Inc. (NASD: KFRC) proposed reductions in executive compensation, according to a filing Friday with the U.S. Securities and Exchange Commission. Kforce began a review of executive compensation after shareholders rejected a non-binding advisory vote on executive compensation in June.
The board considered the vote a “significant matter,” according to Friday’s filing.
“While Kforce had delivered above median total shareholder returns during the period 2009-2011 as compared to its industry peer group for that period, the [compensation] committee determined the pay awarded to executives, including the CEO, was higher than that provided by similar companies for similar returns,” according to the filing.
Among proposed actions for 2012 will be to eliminate both the “2012 annual incentive compensation” plan and the “long-term incentive” award for its CEO.
The “annual incentive compensation” plan is calculated at the end of the year based on financial targets. The plan would have an estimated value of $1.8 million in 2012 if 100 percent of target levels are achieved, according to the filing.
The “long-term incentive” award is based on stock performance, and would normally be awarded in 2013 based on 2012 performance.
The committee is also weighing changes to other top executives in 2013 that include limiting the maximum amounts that can be earned in the annual incentive plan to 200 percent of base salary from 400 percent of base salary.
Another proposal for 2013 would be to award the CEO a long-term incentive award in cash with a cap at $1 million.
In addition, certain awards would be based on a three-year performance period instead of a one-year performance period.
To view the SEC filing, click here.
Kforce CEO David Dunkel was the third-highest compensated executive in Staffing Industry Analysts’ annual report on selected publicly traded staffing firms. Corporate members of Staffing Industry Analysts can access the report by clicking here.