UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934

Filed by the Registrant  þ                            Filed by a Party other than the Registrant  ¨
Check the appropriate box:
¨
 
Preliminary Proxy Statement
¨
 
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
þ
 
Definitive Proxy Statement
¨
 
Definitive Additional Materials
¨
 
Soliciting Material Pursuant to §240.14a-12
Euronet Worldwide, Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
þ
 
No fee required.
¨
 
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
 
 
1

 
Title of each class of securities to which transaction applies:
 
 
2

 
Aggregate number of securities to which transaction applies:
 
 
3

 
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
 
 
4

 
Proposed maximum aggregate value of transaction: 
 
 
5

 
Total fee paid:
¨
 
Fee paid previously with preliminary materials.
¨
 
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
 
 
1

 
Amount Previously Paid:
 
 
2

 
Form, Schedule or Registration Statement No.:
 
 
3

 
Filing Party:
 
 
4

 
Date Filed:
1


Graphics
EURONET WORLDWIDE, INC.
11400 TOMAHAWK CREEK PARKWAY, SUITE 300
LEAWOOD, KANSAS 66211
913-327-4200
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON MAY 18, 2022
     Euronet Worldwide, Inc., a Delaware corporation (“Euronet,” the “Company,” “we” or “us”), will hold the Annual Meeting of our Stockholders (“Annual Meeting”) on Wednesday, May 18, 2022 at 1:00 p.m. (Central time) at Euronet's corporate headquarters at 11400 Tomahawk Creek Parkway, Suite 300, Leawood, Kansas 66211, USA, to consider and vote upon the following matters:
1. Election of the Company’s three nominees for Director, each to serve a three-year term expiring upon the 2025 Annual Meeting or until a successor is duly elected and qualified;
2. Ratification of the appointment of KPMG LLP as Euronet’s independent registered public accounting firm for the year ending December 31, 2022;
3. Advisory vote to approve executive compensation; and
4. Consideration of such other business as may properly come before the meeting or any adjournment of the meeting.
     Our Board of Directors has fixed the close of business on March 22, 2022, as the record date for the determination of Stockholders entitled to notice of, and to vote at, the Annual Meeting and at any adjournment of the meeting.

     This year, we are again pleased to take advantage of the Securities and Exchange Commission (the “SEC”) rules that allow issuers to furnish proxy materials to their stockholders on the Internet. We believe these rules allow us to provide you with the information you need while lowering the costs of delivery and reducing the environmental impact of the Annual Meeting.

     You are cordially invited to attend our Annual Meeting. To ensure that your vote is counted at the Annual Meeting, however, please vote as promptly as possible.
 
By Order of the Board,
 
Graphics
 

 
Scott D. Claassen
  General Counsel and Secretary
April 8, 2022
2



EURONET WORLDWIDE, INC.

11400 TOMAHAWK CREEK PARKWAY, SUITE 300

LEAWOOD, KANSAS 66211

913-327-4200

PROXY STATEMENT

TABLE OF CONTENTS

​​

Table of Content

Page Number

2022 PROXY STATEMENT - SUMMARY 4
GENERAL INFORMATION 6
CORPORATE RESPONSIBILITY & SUSTAINABILITY AT EURONET 8
BENEFICIAL OWNERSHIP OF COMMON STOCK 12
CORPORATE GOVERNANCE 13
PROPOSAL 1 - ELECTION OF DIRECTORS 19
PROPOSAL 2 - RATIFICATION OF KPMG LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR 2022 22
PROPOSAL 3 - ADVISORY VOTE TO APPROVE EXECUTIVE COMPENSATION 22
COMPENSATION DISCUSSION AND ANALYSIS 23
COMPENSATION COMMITTEE REPORT 33
COMPENSATION TABLES 34
DIRECTOR COMPENSATION 46
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION 46
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 47
AUDIT MATTERS 47
OTHER MATTERS 48
APPENDIX A 50
3



2022 PROXY STATEMENT - SUMMARY

April 8, 2022

This summary highlights information contained elsewhere in this Proxy Statement. This summary does not contain all of the information you should consider. You should read the entire Proxy Statement carefully before voting.

GENERAL INFORMATION (see pages 6 - 8)

 

Meeting: Annual Meeting of Stockholders

Date: Wednesday, May 18, 2022

Time: 1:00 p.m., Central

Location: Euronet Worldwide, Inc., 11400 Tomahawk Creek Parkway, Suite 300, Leawood, Kansas 66211

Record Date: March 22, 2022

Mailing Date: The notice regarding the availability of proxy materials was first mailed to Stockholders on or about April 8, 2022

Stock Symbol: EEFT

Exchange: NASDAQ

Common Stock Outstanding: 51,181,044 shares

State of Incorporation: Delaware

Year of Incorporation: 1996

Public Company Since: 1997

Corporate Headquarters: 11400 Tomahawk Creek Parkway, Suite 300, Leawood, Kansas 66211

Corporate Websitewww.euronetworldwide.com

Investor Relations Websiteir.euronetworldwide.com

Annual Reportir.euronetworldwide.com/financial-information/annual-reports

 

EXECUTIVE COMPENSATION  (see pages 22 - 45)

CEO: Michael J. Brown (age 65; CEO since July 1994)

CEO 2021 Total Direct Compensation:

Base Salary: $850,000

Annual Performance Bonus: $1,683,000

Long-Term Incentives: $9,135,727

 

CORPORATE GOVERNANCE (see pages 13 - 18)

Director Nominees: 3

  • Michael J. Brown
  • Andrew B. Schmitt
  • M. Jeannine Strandjord
Director Term: Three years

Director Election Standard: Majority of votes cast

Board Meetings in 2021: 4

Standing Board Committees (Meetings in 2021):

Audit (4), Compensation (4), Nominating & Corporate Governance (2)

Corporate Governance Materials:

ir.euronetworldwide.com/corporate-governance/management

Board Communication:

ir.euronetworldwide.com/corporate-governance/contact-the-board

4


OTHER ITEMS TO BE VOTED ON (see pages 19 - 23)

 

Ratification of Appointment of Independent Registered Public Accounting Firm (KPMG LLP)

Advisory Vote to Approve Named Executive Officer Compensation

 

VOTING GUIDELINES

 

What am I being asked to vote on?

 

How does the

Board of

Directors

recommend I

vote?

 

On which pages

of this Proxy

Statement can I

read more

information

before I vote?

Election of Michael J. Brown as a Director

 

FOR

 

19 - 21

Election of Andrew B. Schmitt as a Director

 

FOR

 

19 - 21

Election of M. Jeannine Strandjord as a Director

 

FOR

 

19 - 21

Ratification of Appointment of Independent Registered Public Accounting Firm

 

FOR

 

22

Advisory Vote to Approve Named Executive Officer Compensation

 

FOR

 

22 - 23

5





Euronet has made these materials available to you on the internet or, upon your request, has delivered printed versions of these materials to you by mail in connection with the solicitation of proxies by our Board of Directors (the “Board”), for use at the Annual Meeting of Stockholders to be held on Wednesday, May 18, 2022, at 1:00 p.m. (Central time) at our corporate headquarters at 11400 Tomahawk Creek Parkway, Suite 300, Leawood, Kansas 66211, USA.

Stockholders Entitled to Vote


Stockholders at the close of business on March 22, 2022 (the “Record Date”) are entitled to notice of, and to vote at, the Annual Meeting. The Stockholders will be entitled to one vote for each share of common stock, par value $0.02 per share (the “Common Stock”), held of record at the close of business on the Record Date. To take action at the Annual Meeting, a quorum composed of holders of one-third of the shares of Common Stock outstanding must be represented by proxy on in person at the Annual Meeting. On March 22, 2022, there were 51,181,044 shares of Common Stock outstanding. No shares of preferred stock are outstanding.

How to Vote

 

Registered Stockholders. Registered Stockholders (that is, Stockholders who hold their shares directly with our stock registrar), can vote any one of four ways:

 

Via the Internet: www.proxyvote.com - Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the meeting date.  Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.

By Telephone: 1-800-690-6903 - Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the meeting date.  Have your proxy card in hand when you call and then follow the instructions.

 

By Mail: Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.

 

In Person: Attend the Annual Meeting and vote your shares.

 

If you vote via the Internet or by telephone, your electronic vote authorizes the named proxies in the same manner as if you signed, dated and returned a proxy card.

 

Beneficial Stockholders. If your shares are held beneficially in the name of a bank, broker or other holder of record (sometimes referred to as holding shares “in street name”), you will receive instructions from the holder of record that you must follow in order for your shares to be voted. Notice and Access delivery of the proxy materials, Internet and/or telephone voting and voting in person at the meeting also will be offered to Stockholders owning shares through most banks and brokers.


Revoking Your Proxy or Changing Your Vote


You may change your vote at any time before the proxy is exercised. For registered Stockholders, if you voted by mail, you may revoke your proxy at any time before it is exercised by executing and delivering a timely and valid later-dated proxy, by voting in person at the meeting or by giving written notice to the Secretary. If you voted via the Internet or by telephone you may also change your vote with a timely and valid later Internet or telephone vote, as the case may be, or by voting in person at the meeting. Attendance at the meeting will not have the effect of revoking a proxy unless (1) you give proper written notice of revocation to the Secretary before the proxy is exercised, or (2) you vote at the meeting.


If you hold your shares beneficially, you must follow the specific directions provided to you by your bank, broker or other holder of record to change or revoke any voting instructions you have already provided.

6


Voting and Solicitation


Each share of Common Stock issued and outstanding as of the Record Date will have one vote on each of the matters presented herein. Votes cast by proxy or at the Annual Meeting will be tabulated by the inspector of elections appointed for the Annual Meeting.


Pursuant to rules adopted by the Securities and Exchange Commission, we are making this Proxy Statement and our 2021 Annual Report available to Stockholders electronically via the Internet. On or before April 8, 2022, we mailed to our Stockholders of record the “Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to be held on May 18, 2022” (the “Notice”).  All Stockholders will be able to access this Proxy Statement and our 2021 Annual Report on the website referred to in the Notice or request to receive printed copies of the proxy materials. Instructions on how to access the proxy materials on the Internet or request a printed copy may be found in the Notice. In addition, Stockholders may request to receive proxy materials in printed form by mail or electronically by email on an ongoing basis. We encourage Stockholders to take advantage of the availability of the proxy materials on the Internet to help reduce the environmental impact of our annual meetings.


We will treat shares that are voted “For,” “Against” or “Withheld From” a matter as being present at the meeting for purposes of establishing a quorum. We will treat abstentions and broker non-votes also as shares that are present and entitled to be voted for purposes of determining the presence of a quorum.


Election of Directors


In an uncontested election, a Director nominee must be elected by a majority of the votes cast, in person or by proxy, regarding the election of that Director nominee. A “majority of the votes cast” for the purposes of Director elections means that the number of votes cast “For” a Director nominee’s election exceeds the number of votes cast as “Withheld From” for that particular Director nominee. If an incumbent Director is not re-elected in an uncontested election and no successor is elected at the same meeting, the Director must submit an offer to resign.


In a contested election, which occurs when the number of Director nominees exceeds the number of open seats on the Board at any time before the meeting, Director nominees will be elected by a plurality of the shares represented at the meeting. A “plurality” means that the open seats on the Board will be filled by those Director nominees who received the most affirmative votes, regardless of whether those Director nominees received a majority of the votes cast with respect to their election.


At the Annual Meeting, the election of Directors is considered to be uncontested because we have not been notified of any other nominees as required by our Amended and Restated Bylaws (“Bylaws”). To be elected, each Director nominee must receive a majority of votes cast regarding that nominee. Abstentions will have no effect on the election of Directors.


Other Matters


All other matters will be determined by a vote of a majority of the shares present or represented by proxy and voting on such matters. Under Delaware law, abstentions are not considered votes cast and will have no effect on whether a matter is approved.


Broker Non-Votes


On routine matters, such as the ratification of the appointment of KPMG as our independent registered public accounting firm, if you do not provide instructions on how you wish to vote, your broker will be allowed to exercise discretion and vote on your behalf. Your broker is prohibited, however, from voting on non-routine matters, which includes all of the proposals in this Proxy Statement other than the proposal to ratify the appointment of KPMG. Broker “non-votes” will occur when a broker does not receive voting instructions from a Stockholder on a non-routine matter or if the broker otherwise does not vote on behalf of the Stockholder. Broker non-votes will not count in determining the number of votes cast with respect to the election of Directors or a proposal that requires a majority of votes cast and, therefore, will not affect the outcome of the election of Directors or the voting on such a proposal.

7


Electronic Access to Proxy Materials and Annual Report


This Proxy Statement and our 2021 Annual Report are available on our website at https://ir.euronetworldwide.com/financial-information/annual-reports, respectively. If you received paper copies of this year’s Proxy Statement and Annual Report by mail, you can elect to receive in the future an email message that will provide a link to those documents on the Internet. By opting to access your proxy materials via the Internet, you will:

  • help preserve environmental resources;
  • gain faster access to your proxy materials;
  • save us the cost of producing and mailing documents to you; and
  • reduce the amount of mail you receive.

Stockholders who have enrolled in the electronic access service previously will receive their materials online this year.


Persons Making The Solicitation

Euronet is making all the solicitations in this Proxy Statement. We will bear the entire cost of this solicitation of proxies. Our Directors, officers and employees, without additional remuneration, may solicit proxies by mail, telephone and personal interviews. We will, if requested, reimburse banks, brokerage houses and other custodians, nominees and certain fiduciaries for their reasonable out-of-pocket expenses incurred in connection with the distribution of proxy materials to their principals.


CORPORATE RESPONSIBILITY & SUSTAINABILITY AT EURONET

Overview

Under the guidance and supervision of our Board of Directors, Euronet Worldwide pursues a high level of corporate responsibility and sustainability driven by our mission to facilitate financial payments globally. These principles govern all areas of our business, including how we:

  • protect and secure personal and financial data;
  • support our employees;
  • govern our business;
  • respect our environment and connect to our communities. 

Euronet Worldwide is a leading electronic payments provider. We operate around the world with customers in approximately 175 countries, have employees in 56 countries and offices in 43 countries. Our employees represent a significant number of ethnicities and nearly evenly split between men and women. We value diversity and make thousands of jobs available to people in lesser developed economies that might not otherwise have employment opportunities. Moreover, because we are dependent on a technology literate workforce, our employee compensation generally exceeds the respective country’s average personal income based on the World Bank’s global per capita income data. Our products consume very few natural resources or fossil fuels nor do they produce environmentally impacting waste byproductsOur business is managed under the direction of our Directors with the goal of creating stockholder value through the development and distribution of secure financial payment products around the world through the establishment of a culture of strong business ethics, diversity, financial transparency and compliance with laws and regulations. Additionally, we align executive compensation with ESG initiatives by incorporating ESG goals into the annual salary and incentive compensation review process. An executive's failure to address ESG goals and objectives may result in limitations on salary increases and the Compensation Committee reserves the right to reduce achieved performance goals in the event executives fail to support ESG goals and objectives. More details and discussion of our specific practices and initiatives related to our commitment to the specific ESG matters are provided in the following.

Environment

As a financial technology solutions and payments provider, the inherent nature of our business and operations has a relatively limited impact on the environment.  We utilize technological and operational efficiencies wherever possible.  Examples include:

  • Enabling consumer choice for digital delivery of a receipt for an ATM cash withdrawal or deposit
  • Processing cardless transactions
  • Reducing the use of paper forms across our money transfer business
  • Upgrading to low energy consumption equipment
  • Partnering with vendors who have strict corporate responsibility guidelines to which they adhere


8


Euronet also practices environmental responsibility in our workplaces:


  • We design software systems that rely on less hardware and energy requirements to perform than previous generations
  • We design our software and data centers to leverage existing centers for business continuity rather than erecting rarely used hot sites
  • We utilize technology including video and teleconferencing to reduce the need for travel for both internal and customer meetings
  • We purchase recycled products and provide systems for our employees to recycle paper, plastic, aluminum, glass, and other materials as available in their regions
  • Many of our workplaces utilize motion and light sensors and climate controls to reduce electricity use in unoccupied areas
  • We strive to use low or renewable energy devices such as LED light bulbs where possible

Social Responsibility

At Euronet, we believe a great company can only be built on a sold ethical foundation.  We want to lead in business, but we are unwilling to compromise our commitment to our values of honesty, integrity and ethics. We achieve these values through:

  • A Code of Conduct followed by our Board of Directors and all employees
  • Attempting to build and maintain a diverse workplace free from discrimination and harassment:
    • Euronet employs local talent in 56 markets around the world
    • 81% of Euronet’s 8,800 employees are based outside of the United States
    • 46% of Euronet’s global workforce is female
    • We provide competitive compensation opportunities to all of our employees based on their roles and responsibilities, experience, performance and other factors
  • Giving back to the communities where we operate through a “Day of Caring”
    • Euronet allocates one full paid day for each employee to participate in a community involvement activity in their local community
    • Euronet regularly participates in fundraising events for local charities
    • Euronet provides funds to employees to direct to charities of their choice

Euronet’s mission is to facilitate financial payments across the globe and ensuring consumers can access their funds and interact in the global marketplace in the manner in which they prefer. We continue to work towards this mission by:

  • Deploying ATMs around the world to provide consumers with convenient, transparent access to cash
  • Developing technology that enables digital payments such as mobile wallet payments and money transfer deposit to or from a digital wallet or bank account
  • Making content available in whatever format the consumer prefers to transact
  • Supporting transactions and remittance options that include unbanked individuals who are traditionally excluded from payment systems
  • Establishing ATMs in the Community program in Europe to provide cash access to residents of rural areas that have been left without cash access when bank branches close
  • Publishing AMBER Alerts on ATMs across Europe to support local government missing person search efforts 
  • Enabling emigrants the ability to send money back to support families at competitive fees
  • Enabling persons denied or without banking privileges to send money to support family
  • Providing complementary ATM and money transfers to customers adversely impacted in difficult situations such as natural disasters, domestic crises and wars (including customers impacted by the conflict in Ukraine) 


9


Governance


Euronet strives for excellence in its governance practices.

Board of Directors

  • The Board is highly qualified to carry out its responsibilities as the governing body on behalf of our Stockholders.
    • Euronet’s Board is comprised of eight members of varying tenures, ages, genders, geography and professional experiences.  Two of the eight members are non-U.S. citizens and one is female. 
    • All Board members are independent members of the Board other than the Founder and Chairman. The Board also operates with a lead independent director. 
  • The Board is guided by our Corporate Governance Guidelines which establish a framework for the governance of the Board and the management of our company. 
  • We have established three committees, comprised of all independent directors, to aid the Board in its oversight of the Company: Audit Committee, Compensation Committee and Nominating & Corporate Governance Committee. 
    • Each of the committees has established a Charter to guide it in fulfilling its duties.
  • The Board completes an annual review evaluating the performance of the entire Board, including the information flow to the Board and Board committees from management and to the Board as a whole from the Board Committee Chairs. 

Management

  • We manage our business on a segment basis, while also maintaining appropriate governance of our subsidiaries. 
  • Our segment structure is designed to ensure that all units of our business operate efficiently, effectively and consistent with our corporate standards. The management structure of each segment mirrors that of the executive management team, including a segment CEO, Finance Director, Technology Director, and Head Legal Counsel.

Cybersecurity

Cybersecurity has become one of the most critical issues facing the world today and we work to address it.

  • We have devoted significant resources to protecting and improving our computer systems, software, network and other assets to both prevent and detect unauthorized access or activity.
  • We work closely with government agencies, law enforcement and other businesses to understand the full spectrum of cybersecurity risks.
  • We have hired dedicated cybersecurity experts and made significant investments in systems across the globe to monitor our systems 24 hours a day, seven days a week. 
  • We engage independent cybersecurity firms to ensure we keep current on the constantly evolving intrusion protections.
  • Our employees complete quarterly training designed to educate them on their responsibilities to ensure company assets are protected from potential threats. 
  • We evaluate the effectiveness of our cybersecurity practices through the use of internal audit, independent testing firms and various card industry compliance examinations and certifications.

Data Security

  • Euronet has adopted an Information Security policy written in accordance with the ISO 27001 Information Security Standard and industry leading practices to ensure business continuity and reduce business risks across Euronet’s business. 
  • We take actions to help protect our customers and consumers from fraud - including establishing velocity limits, tracking suspicious behavior, adding anti-skimming devices, adding encryption to our ATMs, etc. 
10


Data Privacy

We believe that protecting the rights and privacy of all personal data we handle is fundamental to trust in our business relationships.

  • Euronet is committed to complying with international data protection laws, including the European General Data Protection Regulation (“GDPR”), the California Consumer Privacy Act and applicable laws across a number of countries for in-country data protection as well as cross-border data transmission.
  • We have implemented a Data Security Policy which governs how personal data is processed and stored across our systems. We have appointed a Data Protection Officer and other data protection compliance resources around the world to monitor and control personal data in accordance with applicable regulations.

Board Diversity


Our Board of Directors are highly accomplished individuals in their respective industries, fields and communities which are affiliated with numerous corporations, educational institutions, and charities, as well as civic organizations and professional organizations.


Board Diversity Matrix as of December 31, 2021
Total Number of Directors 8

Female Male Non-Binary Did Not Disclose Gender
Part I: Gender Identity



Directors 1 7 - -
Part II: Demographic Background



African American or Black - - - -
Alaskan Native or Native American - - - -
Asian - - - -
Hispanic or Latinx - - - -
Native Hawaiian or Pacific Islander - - - -
White 1 7 - -
Two or More Races or Ethnicities - - - -
LGBTQ+
-
Did Not Disclose Demographic Background
-

The Board evaluated the NASDAQ diversity rule noting each of the current Board members were elected prior to the SEC approval of the NASDAQ Board Diversity Rule. The Nominating and Corporate Governance Committee performs extensive evaluations of the credibility of each Board member and did not exclude a Board candidate based on their gender identity or demographic background. The Board of Directors have ethnic diversity beyond the specific ethnicities defined in NASDAQ Rule 5606, with representation from within and outside the United States, as well as a diverse background of industry experiences ranging from entrepreneurship, finance, transportation, technology, government, academia, and communications. Our Board includes CEO's, patent owners, MIT engineers, Molecular and Cellular Bioligists, Ph.D's, MBA's, and CPA's, all delivering insights from their unique and diverse histories.


11



BENEFICIAL OWNERSHIP OF COMMON STOCK

As of the close of business on March 22, 2022 we had 51,181,044 shares of Common Stock issued and outstanding. The following table sets forth certain information with respect to the beneficial ownership of our Common Stock as of March 22, 2022, held by: (i) each Euronet Director, nominee for Director and executive officer named in the summary compensation table, (ii) all Euronet Directors, nominees for Director and executive officers as a group, and (iii) each Stockholder known by Euronet beneficially to own more than 5% of our Common Stock.

 

 

Beneficial Ownership

Stockholder

 

Number of

Shares (1)

 

Percent of

Outstanding

Directors and Named Executive Officers

 

 

 

 

Michael J. Brown (2)

 

2,460,186

 

4.8%

Rick L. Weller (3)

 

384,477

 

*

Nikos Fountas (4)

 

132,341

 

*

Kevin J. Caponecchi (5)

 

161,009

 

*

Juan C. Bianchi (6)

 

35,556

 

*

Thomas A. McDonnell

 

79,423

 

*

Andrew B. Schmitt

 

67,274

 

*

Paul S. Althasen

 

52,101

 

*

M. Jeannine Strandjord (7)

 

42,111

 

*

Mark R. Callegari

 

17,531

 

*

Michael N. Frumkin

 

2,850

 

*

Dr. Andrzej Olechowski

 

10,879

 

*

All Directors, and Executive Officers as a Group (12 persons) (8)

 

3,445,738

 

6.7%

Five Percent Holders:

 

 

 

 

 The Vanguard Group (9)

 

4,701,762

 

8.9%

       100 Vanguard Blvd.

 

 

 

 

       Malvern, PA 19355

 

 

 

 

Allspring Global Investment Holdings, LLC (10)

 

3,166,238

 

6.0%

      525 Market St, 10th Floor

 

 

 

 

      San Francisco, CA 94105

 

 

 

 

William Blair Investment Management, LLC (11)
2,702,498
5.1%
      150 North Riverside Plaza



      Chicago, IL 60606



________

*

The percentage of shares of Common Stock beneficially owned does not exceed one percent of the shares outstanding.

12


(1)    Calculation of percentage of beneficial ownership includes the assumed exercise of options to purchase Common Stock by only the respective named Stockholder that are vested or that will vest within 60 days of March 22, 2022 and any restricted stock units owned by such person that will vest within 60 days of March 22, 2022.

 

(2)   Includes: (i) 479,370 shares of Common Stock issuable pursuant to options exercisable within 60 days of March 22, 2022, (ii) 34,000 shares of Common Stock held by Mr. Brown’s spouse, (iii) 206,000 shares of Common Stock held by Mr. Brown’s spouse as custodian for his children, and (iv) 276,400 shares of Common Stock held by family trusts for the benefit of Mr. Brown's spouse and children, of which Mr. Brown's spouse is the trustee.

 

(3)    Includes 205,374 shares of Common Stock issuable pursuant to options exercisable within 60 days of March 22, 2022.

 

(4)    Includes 106,034 shares of Common Stock issuable pursuant to options exercisable within 60 days of March 22, 2022.

 

(5)    Includes 81,498 shares of Common Stock issuable pursuant to options exercisable within 60 days of March 22, 2022.

 

(6)    Includes 30,949 shares of Common Stock issuable pursuant to options exercisable within 60 days of March 22, 2022.

 

(7)    Includes 2,000 shares held in Ms. Strandjord’s individual retirement account and the remainder in a revocable trust.

 

(8)    Includes 903,225 shares of Common Stock issuable pursuant to options exercisable within 60 days of March 22, 2022.

 

(9)   This information was supplied on Schedule 13G/A filed with the SEC on February 10, 2022. The Vanguard Group has sole dispositive power over 4,625,359 shares. The Vanguard Group has shared voting power over 29,225 shares and shared dispositive power over 76,403 shares.

(10) This information was supplied on Schedule 13G filed with the SEC on January 19, 2022. Allspring Global Investments Holdings, LLC has sole voting power over 3,003,903 shares and sole dispositive power over 3,166,238 shares. Allspring Global Investments, LLC has sole voting power over 322,102 shares and sole dispositive power over 3,158,163 shares. Allspring Funds Management, LLC has sole voting power over 2,681,801 shares and sole dispositive power over 8,075 shares.

 

(11) This information was supplied on Schedule 13G filed with the SEC on February 10, 2022. William Blair Investment Management, LLC has sole voting power over 2,397,279 shares and sole dispositive power over 2,702,498 shares.


DELINQUENT SECTION 16(a) REPORTS

Section 16(a) of the Exchange Act requires our directors, executive officers and persons who own more than 10% of the shares of our common stock to file an initial report of ownership on Form 3 and changes in ownership on Form 4 or Form 5 with the SEC. Such officers, directors and 10% stockholders are also required by SEC rules to furnish us with copies of any Forms 3, 4 or 5 that they file. The SEC rules require us to disclose late filings of initial reports of stock ownership and changes in stock ownership by our directors, executive officers and 10% stockholders. Based solely on a review of copies of the Forms 3, 4 and 5 furnished to us by reporting persons and any written representations furnished by certain reporting persons, we believe that during the fiscal year ended December 31, 2021, all Section 16(a) filing requirements applicable to our directors, executive officers and 10% stockholders were completed in a timely manner, except for one Form 4 filing related to one transaction by Juan Bianchi.


CORPORATE GOVERNANCE


Director Independence

The Board of Directors has determined that all of the non-employee Directors are “independent” under the listing standards of The Nasdaq Stock Market LLC.

As highly accomplished individuals in their respective industries, fields and communities, the non-employee Directors are affiliated with numerous corporations, educational institutions and charities, as well as civic organizations and professional associations, many of which have business, charitable or other relationships with the Company. The Board considered each of these relationships and determined that none of these relationships conflict with the interests of the Company or would impair the relevant non-employee Director’s independence or judgment.

13



In the event of Board-level discussions pertaining to a potential transaction, relationship or arrangement involving an organization with which a Director is affiliated, that Director would be expected to recuse himself or herself from the deliberation and decision-making process.

MEETINGS AND COMMITTEES OF THE BOARD OF DIRECTORS

The Board held four regular meetings during 2021. The Board has established an Audit Committee, a Compensation Committee and a Nominating & Corporate Governance Committee. During 2021, each Director attended at least 75% of the total number of meetings held by the Board and Board committees on which he or she served (during the period for which he or she was a Director).

Board Committee Membership

          During 2021, the Board committee membership was as follows:


Director

Audit

Compensation

Nominating & Corporate Governance

Michael J. Brown*

 

 

 

Paul S. Althasen - I

 

M

C

Thomas A. McDonnell - I , L

M

M

M

Dr. Andrzej Olechowski - I

 

M

M

Michael N. Frumkin - I




Andrew B. Schmitt - I

M

C

M

M. Jeannine Strandjord - I

C

M

M

Mark R. Callegari - I

M

M

M


*Chairman of the Board     C - Committee Chair     M - Committee Member   I - Independent Director    L - Lead Director


Audit Committee

The Company has an Audit Committee established in accordance with the requirements of the Securities Exchange Act of 1934 (the "Exchange Act").  The Audit Committee of the Board, composed solely of independent Directors, met four times in 2021. The following five Directors are members of the Audit Committee: M. Jeannine Strandjord, Chair, Thomas A. McDonnell, Mark R. Callegari and Andrew B. Schmitt. The Audit Committee operates under a written charter adopted by the Board, which is published on Euronet’s website at http://ir.euronetworldwide.com/corporate-governance.

The Board has determined that each of the Audit Committee members is independent, as that term is defined under the enhanced independence standards for audit committee members in the Exchange Act and rules promulgated thereunder, as amended and incorporated into the listing standards of The Nasdaq Stock Market LLC.

The Board has determined that each of the members of the Audit Committee is an “audit committee financial expert” as that term is defined in the rules promulgated by the SEC pursuant to the Sarbanes-Oxley Act of 2002.

The Audit Committee has oversight responsibilities with respect to our financial reporting process and systems of internal controls regarding finance, accounting and legal compliance. The Audit Committee is responsible for retaining, evaluating and monitoring our independent registered public accounting firm and for providing an audit committee report for inclusion in our Proxy Statement. The Audit Committee is also responsible for maintaining open communication among the Audit Committee, management and our outside auditors. However, the Audit Committee is not responsible for conducting audits, preparing financial statements, or assuring the accuracy of financial statements or filings, all of which is the responsibility of management and/or the outside auditors.


14


Compensation Committee


The Compensation Committee of the Board met four times in 2021 to determine policies regarding the compensation of our executives and to review, determine and recommend to the full Board, as appropriate, the approval of the grant of options, restricted stock units and cash bonuses to our executives. The purpose of the Compensation Committee is to make determinations and recommendations, as appropriate, to the Board with respect to the compensation of our Chief Executive Officer and other senior executive officers. The following six Directors are members of the Compensation Committee: Andrew B. Schmitt, Chair, Thomas A. McDonnell, M. Jeannine Strandjord, Dr. Andrzej Olechowski, Mark R. Callegari and Paul S. Althasen. The Board has determined that all the members of the Compensation Committee are: (i) independent as defined under the independence standards of the listing standards of The Nasdaq Stock Market LLC both for directors generally and those applicable to members of the Compensation Committee and (ii) “non-employee” directors under Section 16 rules.

The Compensation Committee performs its functions and responsibilities pursuant to a written charter adopted by our Board, which is published on Euronet’s website at http://ir.euronetworldwide.com/corporate-governance.

Its charter authorizes our Compensation Committee to delegate its responsibilities to one or more subcommittees or Directors, in accordance with restrictions set forth in the charter. Under the terms of our incentive plans, our Compensation Committee is authorized to administer the plans and may delegate its authority under such plans to another committee of the Board or a Director.

Our human resources department supports the Compensation Committee in its work and in some cases acts pursuant to delegated authority to fulfill various functions in administering the day-to-day ministerial aspects of our compensation and benefits plans.

Annual Process for Determining Compensation of Executive Officers

As further described in the “Compensation Discussion and Analysis,” our Compensation Committee, together with senior management and outside consultants engaged by the Compensation Committee, conducts an annual review of our overall compensation program for executive officers. With respect to executive officer compensation, our Compensation Committee reviews each of the key components of compensation - base salary and short- and long-term incentives, both within Euronet and as compared to peers and survey data to determine whether each of these components is consistent with our compensation philosophy and its related goals and objectives. Upon the recommendation of our Chief Executive Officer with respect to the compensation of each executive officer who directly reports to him, and, based on the findings of any outside consultants that may be engaged to assist in this review, our Compensation Committee determines or recommends to the full Board, as appropriate, the compensation for all key executives, including our Chief Executive Officer.  Executive officers are not involved in proposing or seeking approval for their own compensation.

Process for Determining Non-Employee Director Compensation

Our Compensation Committee makes recommendations to the full Board about Board compensation and benefits for non-employee Directors, including cash, equity-based awards and other compensation based on the recommendations of outside compensation consultants. Our Compensation Committee seeks advice and recommendations from independent outside compensation consultants who are retained by the committee to, among other functions: (i) conduct a competitive assessment of non-employee Director compensation compared to competitive practice, (ii) inform the committee of emerging trends in director pay practices, (iii) advise on stock ownership guidelines for non-employee Directors, and (iv) assess the amount of compensation that is adequate to compensate our Directors for their time and effort with respect to Board obligations. If, after the periodic review of non-employee Director compensation by our Compensation Committee, the committee accepts recommendations from the outside compensation consultants that any changes should be made to such program, it will recommend such changes to our Board for approval.


15


Outside Executive Compensation Consultants


The Compensation Committee directly retained FW Cook as its outside compensation consultant for 2021. FW Cook assisted the Compensation Committee and performed functions in connection with executive compensation matters for the Compensation Committee including: (i) conducting a competitive assessment of key executives’ total direct compensation (e.g., sum of base salary, annual incentive bonus and long-term incentive opportunity), (ii) evaluating appropriateness of annual and long-term incentive plan targets and standards, (iii) assessing whether the structure (the mix of cash and equity compensation, as well as annual and long-term incentives) is appropriate and competitive, (iv) comparing Euronet’s annual share utilization and earnings per share dilution for equity-based compensation to competitive practices and institutional investor guidelines, (v) comparing Euronet’s expense for stock-based compensation to its peer companies, (vi) advising the Compensation Committee regarding design changes to compensatory programs and the development of new programs based on strategic goals, competitive assessment, regulatory changes and risk management, (vii) informing the Compensation Committee of emerging trends in executive compensation, the institutional investor climate and corporate governance and accounting developments, (viii) providing and periodically advising on stock ownership or retention guidelines for senior executives, and (ix) providing the Compensation Committee with regular updates regarding changes in regulatory and legislative developments impacting executive compensation.

The Compensation Committee assessed the independence of FW Cook pursuant to Nasdaq's rules and concluded that no conflict of interest exists that would prevent FW Cook from independently advising the Compensation Committee.

     Compensation Policies and Practices as They Relate to Risk Management

Together with management, the Compensation Committee considered the design and operation of the Company’s compensation arrangements, including the performance objectives and target levels used in connection with incentive awards and evaluated the relationship between the Company’s risk management and these arrangements. The Compensation Committee believes that the Company’s compensation policies and practices do not encourage unnecessary or excessive risk taking and that any risks arising from the Company’s compensation policies and practices for its employees are not reasonably likely to have a material adverse effect on the Company.

Nominating & Corporate Governance Committee

The Nominating & Corporate Governance Committee met two times in 2021. In February 2022, the Nominating & Corporate Governance Committee met to evaluate the performance of the Board during 2021 and consider nominees for election at the Annual Meeting. Paul S. Althasen, Chair, M. Jeannine Strandjord, Andrzej Olechowski, Thomas A. McDonnell, Mark R. Callegari and Andrew B. Schmitt are the current members of the Nominating & Corporate Governance Committee. The Board has determined that all of the members of the Nominating & Corporate Governance Committee are independent as defined under the general independence standards of the listing standards of The Nasdaq Stock Market LLC.

The Nominating & Corporate Governance Committee performs the functions of a nominating committee. The Nominating & Corporate Governance Committee’s charter describes the committee’s responsibilities, including developing corporate governance guidelines and seeking, screening and recommending Director candidates for nomination by the Board. This charter is published on our website at http://ir.euronetworldwide.com/corporate-governance. Euronet’s Corporate Governance Guidelines contain information regarding the selection, qualification and criteria for Director nominees and the composition of the Board, and are published on Euronet’s website at http://ir.euronetworldwide.com/corporate-governance.

The Nominating & Corporate Governance Committee evaluates each Director in the context of the Board as a whole, with the objective of recommending a Director who can best perpetuate the success of the business and represent Stockholder interests through the exercise of sound judgment using their diversity of experience in these various areas. The Nominating & Corporate Governance Committee considers the experience, qualifications, attributes and skills of each Director and nominee, including the person’s particular areas of expertise and other relevant qualifications, and the interplay of such experience, qualifications, attributes and skills with the Board as a whole. As determining the specific qualifications or criteria against which to evaluate the fitness or eligibility of potential Director candidates is necessarily a dynamic and an evolving process, the Board believes that it is not always in the best interests of Euronet or its Stockholders to attempt to create an exhaustive list of such qualifications or criteria. Appropriate flexibility is needed to evaluate all relevant facts and circumstances in context of the needs of the Board and Euronet at a particular point in time. Accordingly, the Nominating & Corporate Governance Committee reserves the right to consider those factors as it deems relevant and appropriate, including the current composition of the Board, the balance of management and independent Directors, the need for Audit Committee expertise and the evaluations of other potential Director candidates. The committee does not have a policy concerning diversity but it believes that the above criteria will lead the committee to consider diversity in its various forms (including diversity of age, experience, background and perspective) in selecting Director candidates. In determining whether to recommend a Director for re-election, the Nominating & Corporate Governance Committee also considers the Director’s past attendance at meetings and participation in and contributions to the activities of the Board.

16


As general guidelines, members of the Board and potential Director candidates for nomination to the Board will be persons with appropriate educational background and training and who:

  • have personal and professional integrity;
  • act in a thorough and inquisitive manner;
  • are objective;
  • have practical wisdom and mature judgment;
  • have demonstrated the kind of ability and judgment to work effectively with other members of the Board to serve the long-term interests of the Stockholders;
  • have a general understanding of management, marketing, accounting, finance and other elements relevant to Euronet’s success in today’s business environment;
  • have financial and business acumen, relevant experience, and the ability to represent and act on behalf of all Stockholders;
  • are willing to devote sufficient time to carrying out their duties and responsibilities effectively, including advance review of meeting materials; and
  • are committed to serve on the Board and its committees for an extended period of time.

In addition, we do not permit any new Directors nominated by the Board (a) who serve as a member of Euronet’s Audit Committee to serve on the audit committee of more than two other boards of public companies, (b) who serve as chief executive officers or in equivalent positions of other public companies to serve on more than two boards of public companies in addition to the Board, and (c) generally to serve on more than four other boards of public companies in addition to the Board.

The Board values the contributions of a Director whose years of service has given him or her insight into Euronet and its operations and believes term limits are not necessary.

The Board believes that its membership should continue to reflect a diversity of gender, race, ethnicity, age, sexual orientation and gender identity and the Nominating/Governance Committee is committed to actively seeking women and minority candidates for the pool from which director candidates are chosen in support of the Board’s commitment to diversity.

Director Candidate Recommendations and Nominations by Stockholders

The Nominating & Corporate Governance Committee’s charter provides that the Nominating & Corporate Governance Committee will consider Director candidate recommendations by Stockholders. Director candidates recommended by Stockholders are evaluated in the same manner as candidates recommended by the Nominating & Corporate Governance Committee. Stockholders should submit any such recommendations to the Nominating & Corporate Governance Committee through the method described under “Other Matters - Recommendations or Nominations of Individuals to Serve as Directors” below. In addition, in accordance with Euronet’s Bylaws, any Stockholder of record entitled to vote for the election of Directors at the applicable meeting of Stockholders may nominate persons for election to the Board of Directors if such Stockholder complies with the notice procedures set forth in the Bylaws and summarized in “Other Matters - Deadline to Propose or Nominate Individuals to Serve as Directors” below.

Lead Independent Director

Under the Company’s Corporate Governance Guidelines, the Board annually selects a Lead Independent Director. The principal responsibilities of the Lead Independent Director are to call for and conduct executive sessions of the Board, serve as liaison between the Chairman of the Board and the independent Directors, approve meeting agendas and schedules for Board meetings, recommend matters to the Chairman for consideration by the Board and be available for consultation and direct communication with Stockholders and all interested parties. A full list of the roles and responsibilities is included in the Company’s Corporate Governance Guidelines.

The Board believes that the existence of a Lead Independent Director enhances coordination of decision-making among the independent Directors and communication between them and the Chairman, and provides a single point of contact for Stockholders and other outside parties to communicate with the Board. Thomas A. McDonnell has acted as the Lead Independent Director since September 2014.

Combined CEO and Chairman Role

Michael J. Brown currently serves as both Chairman of the Board of Directors and Chief Executive Officer and President of the Company. The Nominating & Corporate Governance Committee and the Board have considered the advantages and disadvantages of the combination of these two roles and consider it appropriate to maintain the combined roles. In particular, the Board has concluded that this structure promotes unified leadership and direction for the Company and provides a single, clear focus for the chain of command to execute the Company’s business plans and strategies.

17


Risk Oversight

The Board has delegated oversight of Euronet’s risk management efforts to the Audit Committee. The Audit Committee’s role in risk oversight includes reviewing information provided by members of senior management on areas of material risk to the Company, or to the success of a particular project or endeavor under consideration, including operational, financial, legal, regulatory, compliance, cybersecurity, strategic and reputational risks. The Audit Committee uses such information to understand the Company’s risk identification, risk management and risk mitigation strategies. The Board believes that risk management is an integral part of Euronet’s annual strategic planning process, which addresses, among other things, the risks and opportunities facing the Company.

Part of the Audit Committee’s responsibilities, as set forth in its charter, is to review with corporate management, the independent auditors and the internal auditors, if applicable, any legal matters, risks or exposures that could have a significant impact on the financial statements and the steps management has taken to minimize the Company’s exposure. The Company’s management regularly evaluates these controls, and the Audit Committee is provided regular updates regarding the effectiveness of the controls. The Audit Committee regularly reports to the full Board.

Cybersecurity Oversight

The Board is responsible for overseeing cybersecurity risk. In 2021, the Company's Chief Technology Officer gave a presentation to the Board regarding the security and integrity of the Company's systems, including cybersecurity updates that focused on the Company's most critical processing systems, cybersecurity infrastructure and procedures, drills and training of employees, mitigation of cyber risks and assessments by third-party experts.

Communications with the Board of Directors

The Board has approved a formal policy for Stockholders to send communications to the Board or its individual members. Stockholders can send communications to the Board and specified individual Directors by mailing a letter to the attention of the Board or a specific Director (c/o the General Counsel) at Euronet Worldwide, Inc., 11400 Tomahawk Creek Parkway, Suite 300, Leawood, Kansas 66211 or by sending an email to directors@eeft.com.

Upon receipt of a communication for the Board or an individual Director, the General Counsel will promptly forward any such communication to all the members of the Board or the individual Director, as appropriate. If a communication to an individual Director deals with a matter regarding Euronet, the General Counsel will forward the communication to the entire Board, as well as the individual Director. Neither the Board nor a specific Director is required to respond to Stockholder communications and when responding shall do so only in compliance with the Corporate Governance Guidelines.

Director Attendance at Annual Meeting

Euronet has a policy encouraging its Directors to attend the Annual Meeting of Stockholders. Seven Directors, Michael J. Brown, Andrew B. Schmitt, Paul S. Althasen, M. Jeannine Strandjord, Mark R. Callegari, Thomas A. McDonnell and Michael N. Frumkin, attended our 2021 Annual Meeting.

Code of Conduct

The Board has adopted a Code of Business Conduct & Ethics for Directors, Officers and Employees (the “Code of Conduct”) that applies to our directors, executive officers and our employees. The Code of Conduct is available on Euronet’s website at http://ir.euronetworldwide.com/corporate-governance. Any amendment to or waiver of the Code of Conduct will be filed on Form 8-K or posted on our website.

18


PROPOSAL 1


ELECTION OF DIRECTORS

Our Directors are as follows:

Name

 

Age

 

Position

 

Term Expires

Michael N. Frumkin

53


Class III Director
2024
Paul S. Althasen
57
Class III Director
2024
Thomas A. McDonnell
76
Class III Director
2024

Dr. Andrzej Olechowski

 

75

 

Class II Director

 

2023

Mark R. Callegari
65
Class II Director
2023

Michael J. Brown

 

65

 

Chairman, Chief Executive Officer and Class I Director

 

2022

Andrew B. Schmitt

 

73

 

Class I Director

 

2022

M. Jeannine Strandjord

 

76

 

Class I Director

 

2022


Classified Board

We currently have eight Directors divided among three classes as described above.

The Board has determined that all of the Directors, other than Mr. Brown, are independent Directors as defined in the listing standards for The Nasdaq Stock Market LLC.

Three Class I Directors are to be elected at the Annual Meeting for three-year terms ending at the Annual Meeting of Stockholders in 2025. The Board has nominated Michael J. Brown, Andrew B. Schmitt and M. Jeannine Strandjord for election as Class I Directors. Unless otherwise instructed, each valid proxy will be voted for Messrs. Brown and Schmitt and Ms. Strandjord. Each of the Class I nominees has consented to serve as a Director of Euronet. If a nominee is unable or subsequently declines to serve as a Director at the time of the Annual Meeting, the proxies will be voted for any alternative nominee who shall be designated by the present Board to fill the vacancy. We are not aware of any reason why Messrs. Brown or Schmitt or Ms. Strandjord will be unable or will decline to serve as a Director.

Nominees for Election at the Annual Meeting

The following is a brief description of the business experience of each nominee for Director and a brief discussion of the specific experience, qualifications, attributes or skills that led to the conclusion that the nominee should continue to serve as a Director for the Company, in light of the Company’s business and structure.

MICHAEL J. BROWN is one of the co-founders of Euronet in 1994 and has served as our Chairman of the Board and Chief Executive Officer since 1996 and as our President since December 2014.  He also served as our President from December 11, 2006 to June 11, 2007. Mr. Brown has been a Director of Euronet since our incorporation in December 1996 and previously served on the boards of Euronet’s predecessor companies. In 1979, Mr. Brown co-founded Innovative Software, Inc., a computer software company that was merged in 1988 with Informix. Mr. Brown served as President and Chief Operating Officer of Informix from February 1988 to January 1989. He served as President of the Workstation Products Division of Informix from January 1989 until April 1990. In 1993, Mr. Brown was a founding investor of Visual Tools, Inc. Visual Tools, Inc. was acquired by Sybase Software in 1996. Mr. Brown was formerly a director of Blue Valley BanCorp. and Nexxus Lighting, Inc. Mr. Brown currently serves on the board of directors of Monopar Therapeutics. Mr. Brown received a B.S. in electrical engineering from the University of Missouri-Columbia in 1979 and a M.S. in molecular and cellular biology at the University of Missouri-Kansas City in 1997.

The Board considers as particularly valuable Mr. Brown's deep commitment to the success of the Company (demonstrated in particular by his long-term stock holdings), his extensive experience as the founder of the Company and the initiator of each of the business lines of the Company, and the strategic, business and financial skills and knowledge he brings to his position as Director. Through his management of the Company since its inception, Mr. Brown has acquired a unique knowledge of the financial transaction processing industry in the markets in which the Company operates.

19


 ANDREW B. SCHMITT has served on our Board since September 24, 2003. Mr. Schmitt served as President and Chief Executive Officer of Layne Christensen Company from October 1993 until his retirement on January 31, 2012. For approximately two years prior to joining Layne Christensen Company, Mr. Schmitt was a partner in two privately owned hydrostatic pump and motor manufacturing companies and an oil and gas service company. He served as President of the Tri-State Oil Tools Division of Baker Hughes Incorporated from February 1988 to October 1991. Currently, Mr. Schmitt serves on the board of directors of FreightCar America, Inc., where he chairs the Compensation Committee and is a member of the Nominating and Corporate Governance Committee. Mr. Schmitt served as a director of Layne Christensen Company until his retirement in 2012. Mr. Schmitt holds a bachelor of science degree from the University of Alabama School of Commerce and Business.

The Board considers as particularly valuable Mr. Schmitt's extensive financial, business and management experience and skills, including in particular, valuable knowledge and experience acquired from managing an international business that, like the Company, operated in many developing markets during his tenure.

M. JEANNINE STRANDJORD, CPA, has 50 plus years of financial management experience and was employed in three different industries after starting in public accounting on the audit staff of Ernst and Ernst in 1968.  For 20 years, beginning in 1985, she held several senior financial management roles at Sprint Corporation.  She managed the successful transformation and restructuring of Sprint as Chief Integration Officer from 2003 until 2005 when she retired. Previously, she was Senior VP and Chief Financial Officer of Global Solutions, a $9 billion division, from 1998 until 2003, and was Controller and Treasurer from 1986 to 1998.  Ms. Strandjord was a director of American Century Mutual Funds (for six registered investment companies) from 1994 to 2018; was a director of DST Systems, Inc., from 1996 to 2012; and has been a director of MGP Ingredients since 2013. She has also been a director of JE Dunn Construction Corporation, a private company, from 2006 to 2020.  Her current non-profit boards are the Truman Library, and the KU Medical Center Advancement Board. Past non-profit boards include Rockhurst University, the Heartland Chapter of the National Association for Corporate Directors, the Kansas City Community Foundation, the National World War I Museum and Memorial, and the Ewing Marion Kauffman Foundation. She has been a Director of the Company since 2001 and is currently the Chair of the Audit Committee. She also served as  Lead Independent Director from 2010 to 2014. Ms. Strandjord holds a bachelor's degree in accounting and business administration from the University of Kansas. She was named "National Director of the Year" by the National Association of Corporate Directors in 2018.

The Board considers as particularly valuable Ms. Strandjord's experience on the boards of various other public companies, as well as an extensive background in finance, corporate governance, restructuring, talent management, and compensation and benefits.

Other Directors

The following is a brief description of the business experience of each of our other Directors whose term of office will extend beyond 2022, and a brief discussion of the specific experience, qualifications, attributes or skills that led to the conclusion that the other Directors are qualified for service as a Director of the Company, in light of the Company’s business and structure.

DR. ANDRZEJ OLECHOWSKI has served on our Board since May 2002. He previously served as a Director of Euronet from its incorporation in December 1996 until May 2000. From 2005 until 2009 when he retired, Dr. Olechowski was the President of Conseil DG, a Polish consulting company. From 1995 until 2008, Dr. Olechowski served as a Senior Advisor for Central Europe Trust, Poland, a consulting firm. He has held several senior positions with the Polish government: from 1993 to 1995, he was Minister of Foreign Affairs and in 1992 he was Minister of Finance. From 1992 to 1993, and again in 1995, he served as economic advisor to President Lech Walesa. From 1991 to 1992, he was Secretary of State in the Ministry of Foreign Economic Relations and from 1989 to 1991 he was Deputy Governor of the National Bank of Poland. From May 1998 to June 2000, Dr. Olechowski served as the Chairman of Bank Handlowy w Warszawie S.A. (Poland). From 2011 to 2018, Dr. Olechowski was a Professor at Vistula University. Until April 2009, Dr. Olechowski sat on the Supervisory Board of Vivendi (France) and until 2021 sat on the Supervisory Board of Bank Handlowy w Warszawie S.A. (Poland), and the board of directors of Play Communications S.A. and currently sits on the boards of various charitable and educational foundations.  He received a Ph.D. in Economics in 1979 from the Central School of Planning and Statistics in Warsaw.

The Board considers as particularly valuable Dr. Olechowski's significant stature in Polish government and business, his extensive business connections in and knowledge of the banking industry in Poland and Central Europe (which have historically been among the most important markets in the EFT Division), as well as his experience as a consultant and member of other boards with respect to the strategic and market factors affecting our business.

MARK R. CALLEGARI has served on our Board since September 2014. Mr. Callegari is the Founder and Chief Executive Officer of Callegenix, LLC, an industry leader in lighting control and microprocessing systems founded in 1999. In 2002, Mr. Callegari founded LightWild LLC and served as its Chairman until 2013. In 2002, Mr. Callegari founded and served as Chairman of Animated Lighting, Inc., until its sale in 2005. In 1998, Mr. Callegari founded Tidestone Technologies and served as its Chairman until 2001. In 1979, Mr. Callegari co-founded Innovative Software, Inc., a computer software company that was merged in 1988 with Informix. Mr. Callegari served as Executive Vice President of Informix from 1988 to 1992. Mr. Callegari received a Bachelor of Science degree from Rockhurst University and is the holder of two patents on the process of illuminating building facades.

20


The Board considers as particularly valuable Mr. Callegari's extensive talent as a proven entrepreneur with valuable insight and his experience in developing industry leading technology and software solutions.

MICHAEL N. FRUMKIN has served on our Board since June 2020. Mr. Frumkin has more than 25 years of experience in technical and management leadership roles in fast-growth, high-performance technology companies, including Silicon Valley icons like NeXT and Google. He was responsible for critical engineering functions at Verity, Excite, and Google all of whom went from startup to successful IPOs during his tenure. In 1995, he joined a small 10 person startup that built one of the first full scale commercial internet search engines that eventually became Excite@Home, a multi-billion dollar public company. In his tenure at Excite, Mr. Frumkin was responsible for core company functions like web crawl and e-commerce engineering. After Excite, Mr. Frumkin spent several years as the Chief Technology Officer of Gamechange, the seed stage collaboration between Accenture Technology Ventures and Softbank Venture Capital, where he was responsible for technical due diligence and providing management guidance to portfolio companies. In 2002, pursuing a desire to go back to his more technical distributed computing roots, he joined Google where his responsibilities have ranged from managing large engineering teams responsible for most of Google’s revenue, to overseeing critical internal software infrastructure projects. At various points in time, he was responsible for the engineering teams building and operating AdWords and the initial launch of AdSense, and the building of Google’s personalization infrastructure. In 2012, Mr. Frumkin founded the Google Accelerated Science research team within Google Research. This team works with leading scientific institutions and universities around the world to increase the pace of discovery in important scientific research by bringing Google’s expertise in machine intelligence and machine perception to bear on fundamental science problems. Mr. Frumkin holds Bachelor of Science and Master of Science degrees in Computer Science and Engineering from MIT. 

The Board considers as particularly valuable Mr. Frumkin's technical and engineering expertise, and demonstrated success in applying that knowledge across a variety of high-growth technology companies.

PAUL S. ALTHASEN has served on our Board since May 2003. He joined Euronet in February 2003 in connection with Euronet’s acquisition of e-pay Limited, a UK company. Mr. Althasen served as Executive Vice President of Euronet until his resignation on April 2, 2012. Mr. Althasen is a co-founder and former CEO and Co-Managing Director of e-pay, and he was responsible for the strategic direction of e-pay from its formation in 1999 until April 2012. From 1989 to 1999, Mr. Althasen was a co-founder and Managing Director of MPC Mobile Phone Center, a franchised retailer of cellular phones in the UK. Previously, Mr. Althasen worked for Chemical Bank in London where he traded financial securities. From 2008 to 2016, Mr. Althasen served as a director of Evolve Telecom Ltd., a B2B provider of telecommunication services. Mr. Althasen currently serves as a director of Lodwick Homes Ltd. Since 2008, Mr. Althasen has been a director of Pier Insurance Managed Services Ltd., where he holds joint responsibility for the company's strategic direction and general management. Mr. Althasen has a B.A. (Honors) degree in business studies from the City of London Business School.

The Board considers as particularly valuable Mr. Althasen's broad first-hand knowledge and experience in the prepaid payments industry in Western Europe and especially in the UK.

THOMAS A. MCDONNELL has been a Director of Euronet since its incorporation in December 1996 and he previously served on the boards of Euronet’s predecessor companies. He has served as Lead Independent Director since September 2014. From October 1984 until September 12, 2012, he served as Chief Executive Officer of DST Systems, Inc., a former Stockholder of Euronet. From September 12, 2012 through December 31, 2012, he served as non-executive Chairman of DST Systems, Inc. From 1973 to September 1995, he served as Treasurer of DST Systems, Inc. From January 1, 2013 until his retirement on December 31, 2014, Mr. McDonnell was President and Chief Executive Officer of the Ewing Marion Kauffman Foundation. Mr. McDonnell is currently a director of Kansas City Southern, where he is a member of the Audit Committee. Mr. McDonnell has a B.S. in Accounting from Rockhurst University and an M.B.A. from the Wharton School of Finance.

The Board considers as particularly valuable Mr. McDonnell's many years of experience in management of a public company in the transaction processing industry and participation on other company boards, whereby Mr. McDonnell has acquired extensive financial, accounting and management experience and substantive business knowledge. These qualities, as well as the knowledge of the Company’s business gained from his participation on the Board since the Company’s inception, are considered particularly valuable by the Board.


Required Vote and Board Recommendation

Election of the Company’s three nominees for Director requires each Director nominee to receive the affirmative vote of a majority of the votes cast in person, by telephone, mailed in or represented by proxy at the Annual Meeting regarding the election of such Director nominee.

THE BOARD UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR” THE ELECTION OF MR. MICHAEL J. BROWN, MR. ANDREW B. SCHMITT AND MS. M. JEANNINE STRANDJORD AS CLASS I DIRECTORS OF EURONET.

21




PROPOSAL 2

RATIFICATION OF KPMG LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR 2022

We are requesting our Stockholders ratify the selection by our Audit Committee of KPMG LLP as Euronet’s independent registered public accounting firm for 2022. KPMG LLP will audit the consolidated financial statements of Euronet and its subsidiaries for 2022, review certain reports we will file with the SEC, audit the effectiveness of our internal control over financial reporting, provide our Board and Stockholders with certain reports, and provide such other services as our Audit Committee and its Chairperson may approve from time to time.

       KPMG LLP served as our independent registered public accounting firm for 2021, and performed professional services for us as described below in the “Audit Matters” section. Representatives of KPMG LLP are expected to be present at the Annual Meeting and will have the opportunity to make a statement if they desire and to respond to appropriate questions. Although our Audit Committee has selected KPMG LLP, it nonetheless may, in its discretion, terminate KPMG’s engagement and retain another independent registered public accounting firm at any time during the year if it concludes that such change would be in the best interests of Euronet and its Stockholders.

Required Vote and Board Recommendation

Approval of the ratification of KPMG LLP as our independent registered public accounting firm for 2022 requires the affirmative vote of a majority of the shares of Common Stock present in person or represented by proxy at the Annual Meeting and voting on this proposal.

THE BOARD UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE “FOR” THE RATIFICATION OF THE SELECTION OF KPMG LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR 2022.

PROPOSAL 3


ADVISORY VOTE TO APPROVE EXECUTIVE COMPENSATION


The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or the Dodd-Frank Act, enables our Stockholders to vote to approve, on a non-binding advisory basis, the compensation of our named executive officers as disclosed in this Proxy Statement in accordance with the SEC’s rules.

As described in detail below under the heading “Compensation Discussion and Analysis,” our executive compensation programs are designed (i) to align the interests of executive management and Stockholders by making individual compensation dependent upon achievement of financial goals and by providing long-term incentives through our equity-based award plans, and (ii) to provide competitive compensation that will help attract, retain and reward highly qualified executives who contribute to our long-term success. The overall compensation program is designed to reward a combination of strong individual performance, strong performance by Euronet in meeting its long-term strategic goals and stock price appreciation.

Our compensation package for executive officers consists of a balance of base salary, certain employee benefits, annual bonuses under our Executive Annual Incentive Plan, performance based equity grants and limited perquisites or other benefits. To serve the best interests of Stockholders, the Compensation Committee follows an executive compensation philosophy that emphasizes performance-based compensation. This philosophy also aligns the economic interests of executive officers and Stockholders by ensuring that nonvested performance-based equity incentive awards represent a substantial portion of an executive officer’s total compensation package. The Compensation Committee periodically reviews our executive compensation practices to ensure they achieve our desired goals.

At last year’s annual meeting, over 82% of the votes cast on the advisory vote on executive compensation were in favor of the Company’s named executive officer compensation for 2020. We are asking our Stockholders to again indicate their support for our named executive officer compensation as described in this Proxy Statement. This proposal, commonly known as a “say-on-pay” proposal, gives our Stockholders the opportunity to express their views on our named executive officers’ compensation. This vote is not intended to address any specific item of compensation, but rather the overall compensation of our named executive officers and the philosophy, policies and practices described in this Proxy Statement. Accordingly, we will ask our Stockholders to approve, on an advisory basis, the following resolution:

22


“RESOLVED, that the Company’s Stockholders approve, on an advisory basis, the compensation of the named executive officers, as disclosed in the Company’s Proxy Statement for the 2022 Annual Meeting of Stockholders pursuant to the compensation disclosure rules of the Securities and Exchange Commission, including the Compensation Discussion and Analysis, the compensation tables and related narrative disclosure.”


The say-on-pay vote is advisory, and therefore not binding on the Company, the Compensation Committee or our Board of Directors. However, our Board of Directors and Compensation Committee value the opinions of our Stockholders and will consider the outcome of the vote when making future executive compensation decisions.

THE BOARD UNANIMOUSLY RECOMMENDS AN ADVISORY VOTE “FOR” THE APPROVAL OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS, AS DISCLOSED IN THIS PROXY STATEMENT PURSUANT TO THE COMPENSATION DISCLOSURE RULES OF THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE COMPENSATION DISCUSSION AND ANALYSIS, THE COMPENSATION TABLES AND RELATED NARRATIVE DISCLOSURE.

COMPENSATION DISCUSSION AND ANALYSIS

Executive Summary

Euronet has a long-standing compensation philosophy that emphasizes performance-based compensation to ensure that the interests of all of our executives, including the named executive officers (NEOs), are aligned with our Stockholders.  Our program is market-competitive to ensure we attract, retain and reward highly qualified executives who contribute to our success with compensation packages established pursuant to the following principles:

  • Market-Competitive - We review and benchmark our compensation opportunities annually to ensure total direct compensation including base salary, an annual cash incentive and target long-term equity incentives are market-competitive.
  • Pay for Performance - We emphasize pay for performance with at least 80% of NEO target total direct compensation dependent on the achievement of annual and long-term Company performance goals.
  • Comprehensive Benefit Programs - We offer our employees a competitive benefit plan that supports retirement, health and wellness. NEOs generally have access to the same health and retirement benefits as all of our U.S. employees.
  • Stockholder Value Alignment - We align incentive programs with Stockholder value creation by using annual and three-to-five year performance measures that drive Stockholder value. Incentive goals are directly aligned with our Board-approved long-term strategic plan.

Management's primary operating measures are earnings per share and operating income, each adjusted for currency fluctuations and certain pre-defined, non-cash and non-recurring elements approved by the Compensation Committee, which we refer to as "adjusted EPS" and "adjusted operating income," respectively.

Financial Performance


In 2021, the Company achieved strong financial results as the Company emerged from the COVID-19 pandemic that began in early 2020. Our 2021 financial performance was as follows:


Top and Bottom Line Results

21%

45%

31%

Revenue Increase

Adjusted Operating Income Increase

Adjusted EPS Increase

18% increase on a constant currency basis1

42% increase on a constant currency basis1


 

Stockholder Value Creation

 

Total Stockholder Return

$227.8 million

Year-end 2021

Capital Returned to Stockholders

1-YEAR

(18%)

3-YEAR

16%

5-YEAR

65%

(through Share Repurchases)

 

 

 

23


________


1Adjusted operating income, adjusted EPS, revenue on a constant currency basis and adjusted operating income on a constant currency basis are non-GAAP financial measures that exclude certain items. Please refer to Appendix A to this Proxy Statement for a reconciliation of these measures relative to the reported GAAP financial measures. To evaluate performance in a manner consistent with how management evaluates our operational results and trends, the Compensation Committee uses certain non-GAAP performance metrics for both annual incentive and long-term awards. Constant currency financial measures assume foreign currency exchange rates did not change from the prior period, which enables consistent year-over-year financial comparisons and ensures incentive payouts are not artificially inflated or impaired by local country currency fluctuations that are outside the control of management. 


The following graph compares Euronet Worldwide Inc.’s annual percentage change in cumulative total return on common shares over the past five years with the cumulative total return of companies comprising the Nasdaq Composite index and the Nasdaq US Benchmark Financial Services TR Index. This presentation assumes that $100 was invested in shares of the relevant issuers on December 31, 2016, and that dividends received were immediately invested in additional shares. The graph plots the value of the initial $100 investment at one-year intervals for the fiscal years shown. The Nasdaq Composite index replaces the CRSP Nasdaq Stock Market (US Companies) Index and the Nasdaq US Benchmark Financial Services TR Index replaces the CRSP Nasdaq Financial Index in this analysis and going forward, as the CRSP Index data is no longer accessible. The CRSP indexes have been included with data through 2020.


Graphics


EXECUTIVE COMPENSATION PROGRAM OBJECTIVES AND STRATEGY

Our Industry Environment

The payments industry is changing rapidly and requires companies to be transparent, compliant and competitively priced as well as develop and maintain leading-edge, flexible technology in order to provide consumers with access to their funds in the way they demand it.

  • Banks are closing branches, resulting in cash deserts across certain areas in Europe
  • Consumers want choice on how to interact with their funds while participating in the global economy
  • Data security, data privacy and compliance are fundamentally important to company success

Our Compensation Program Must Reflect the Industry Within Which We Operate, Be Market Competitive and Pay For Performance

We strive to balance the need for market-competitive pay within a framework that provides the appropriate mix of fixed and variable, at-risk compensation to attract, retain and motivate talent and align executive and stockholder interests within our pay-for-performance objectives.

24


Our program must:

  • Support our efforts to attract and retain highly qualified business minds to contribute to our long-term success
  • Align the interests of our executives with the interests of our stockholders by making individual compensation dependent upon achievement of financial goals and providing long-term incentives through our equity-based award plans
  • Reward our executives based on the achievement of sustained financial and operating performance and demonstrated leadership

PARTICIPANTS IN EXECUTIVE COMPENSATION DESIGN AND DECISION-MAKING PROCESS

Compensation Committee

The Compensation Committee is currently comprised of six independent Directors who each hold a significant amount of Company stock (stock value at December 31, 2021 of Compensation Committee members ranges from six to 37 times the annual retainer) and together they administer our executive compensation programs. The Compensation Committee is responsible for recommending policies to the Board that govern both annual cash compensation and equity incentive programs. The Compensation Committee has the authority to retain independent outside consultants or advisors as it deems necessary to provide desired expertise and counsel.

Compensation Consultant

The Compensation Committee retained FW Cook as independent compensation consultant for 2021 to advise the Compensation Committee on all matters related to executive officer compensation. FW Cook provided advice regarding current and emerging practices with regard to executive compensation. Representatives from FW Cook attended meetings, as requested by the Committee, including the December 2021 meeting, when the Committee approved grants of stock incentive awards and determined executive compensation and established performance targets for 2022. FW Cook provided other services to the Compensation Committee or the Company as outlined on pages 26 and 27.  FW Cook did not provide any other services to the Compensation Committee or the Company outside of its capacity as executive compensation consultant. 

The Compensation Committee assessed the independence of FW Cook pursuant to Nasdaq's rules and concluded that no conflict of interest exists that would prevent FW Cook from independently advising the Committee.

Chief Executive Officer and Chief Financial Officer

The Compensation Committee considers input from our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") regarding the responsibilities and accomplishments of individual executive officers, information as to potential achievability of incentive goals and levels of various compensation elements necessary to provide incentives for and to retain executive management. Our CEO makes recommendations to the Compensation Committee on each of the other executive officers compensation. Executive officers are not involved in proposing or seeking approval for their own compensation. For the CEO's review, the independent Directors meet in an executive session to assess the CEO's performance and determine appropriate compensation levels and performance goals.

Corporate Governance

The Compensation Committee has incorporated the following governance features into our programs:

What We Do

What We Do Not Do

>Align pay and stockholder performance

>Maintain rigorous stock ownership requirements and holding periods of shares for the CEO and Board

>Establish targets for performance metrics aligned to stockholder interests

>Require forfeiture of equity awards when a NEO terminates employment for any reason other than retirement, disability, death or termination under specific circumstances related to change of control

>Responsible use of shares under our long-term incentive program

>Prohibit pledging and hedging

>Engage an independent compensation consultant

>Provide limited perquisites

>Conduct annual compensation risk assessments

  • Pay dividends or dividend equivalents on unearned, unvested or unexercised equity compensation
  • Pay excessive severance benefits
  • Backdate or reprice stock option awards
  • Award immediately vested options or RSUs to any employee
  • Make multi-year compensation guarantees
  • Grant stock options with an exercise price less than fair market value
  • Provide excise tax gross-ups on new or amended agreements since February 2011
25


How We Establish Executive Compensation Levels

In determining the annual compensation of each executive officer, including the Chief Executive Officer, the Compensation Committee considers Euronet’s financial performance both on an absolute basis and relative to comparable companies. In addition, it assesses individual performance against quantitative and qualitative objectives. Factors considered by the Compensation Committee in assessing individual performance include, but are not limited to:

  • Financial Results — Company and business sector financial results for the most recent relevant period, on an absolute basis and relative to comparable companies with respect to certain financial parameters, including revenue growth, operating income growth, growth in per share earnings and return on equity;
  • Strategic Growth and Execution — strategic planning and implementation, business growth, acquisitions, technology and innovation;
  • Leadership and Effectiveness — management development and personal leadership; and
  • Governance and Controls — corporate reputation and brand, risk management, the strength of the internal control environment and contribution to a culture of ethics and compliance.

The Compensation Committee considers all factors collectively in determining executive officers’ annual compensation. The weight given to a particular factor may vary from year to year depending on the goals and objectives of the organization, thus enabling the Compensation Committee to align annual financial objectives with strategic leadership initiatives.

The Compensation Committee believes that it establishes challenging performance goals for executive management incentive plans. Performance goals primarily focus on adjusted EPS growth which the Compensation Committee believes provides a meaningful incentive for the executives and is strongly correlated with improved stockholder returns.

Peer Group

The Compensation Committee believes that it is essential for our continued success that overall compensation policies allow us to be competitive in attracting and retaining executive talent. However, the Committee does not establish compensation targets solely based on peer group compensation amounts, because it believes that individual and company performance should be the primary determinants of annual compensation.

The Company's peer group (the "Peer Group") listed below and FW Cook's executive compensation market analysis were used to inform the Compensation Committee's decisions on long-term incentive compensation for our executives for 2021. The Compensation Committee believes the group of companies have similar financial characteristics as Euronet and operate in similar industries. 

 

Members of the current Peer Group were included because they met all of the following criteria:

  • the company was in the same or similar industry as Euronet, including Data Processing and Outsourced Services, and Application Software,
  • the company was reasonably comparable in revenue and market capitalization size to Euronet,
  • the company was headquartered in the United States and publicly traded on a major stock exchange, and
  • the company had a similar operating structure as Euronet, such as offering similar services and/or having significant foreign sales. 

The Committee also considered companies that named Euronet as a peer and were prevalent peers of current peers.


26


The companies comprising the Peer Group to determine long-term incentive compensation for our executives for 2021, all of which had revenues between $500 million and $8.5 billion and market capitalization between $500 million and $42.0 billion, were:


ACI Worldwide, Inc.

• Global Payments, Inc.

Alliance Data Systems Corporation

• Green Dot Corporation

• Broadridge Financial Solutions, Inc.

• Jack Henry & Associates, Inc.

• CardtronicsInc.

• MoneyGram International, Inc.

• Envestnet, Inc.

• SS&C Technologies Holdings, Inc.

EVERTEC, Inc.

• TTEC Holdings, Inc.

Fair Issac Corp

• The Western Union Company

• FleetCor Technologies, Inc.

• WEX, Inc.

• Genpact Limited



Euronet's revenues and market capitalization ranked at the following percentile as compared to the Peer Group:

 

Percentile Rank(1)

Revenues

 

Market Capitalization

Euronet Worldwide, Inc.

64%

 

48%

(1) Based on latest four quarters revenues and market capitalization as of October 31, 2021.

The Compensation Committee evaluates whether the compensation opportunities for executives are appropriate and competitive by comparing each named executive officer’s target total compensation opportunity, which represents the sum of the executive’s base salary and target award amounts under the Executive Annual Incentive Plan and Stock Incentive Plan, to the target total compensation opportunities for executives in comparable positions at peer companies. The Compensation Committee references the 50th percentile of the Peer Group when making this comparison, although a named executive officer’s total compensation opportunity may be higher or lower depending upon the executive’s tenure, overall level of responsibility and performance. The Compensation Committee believes that the 50th percentile is an appropriate market reference point for total compensation opportunity because of Euronet's size relative to the Peer Group.

Because of challenging market conditions due to the COVID-19 pandemic that persisted in early 2021, the Compensation Committee decided to maintain 2021 base salaries and target annual incentives at 2020 levels. The Compensation Committee's determination of 2020 salaries and target annual incentive opportunities was informed by competitive data compiled by the independent compensation consultant in late 2019, which compared target total direct compensation opportunities for our named executive officers with the median statistics for target total direct compensation among similarly situated executives within the relevant peer data.

In the fourth quarter of 2021, the Compensation Committee reviewed an updated competitive analysis of target total direct compensation opportunities for our named executive officers, to inform their decisions on long-term incentive grant values for the December 2021 grant. The competitive analysis indicated that base salaries for our executive officers were comparable to the median of our peers as was cash compensation, which included target annual non-equity incentive compensation. However, target long-term incentive grant values were below the median resulting in target total direct compensation below median for several executives. For this reason, the Compensation Committee increased target long-term incentive grant values for executives to provide a more competitive total pay opportunity. Most of our long-term equity incentive compensation is subject to performance-based vesting criteria and our executive officers will fully earn this compensation only if the performance-based vesting criteria are satisfied and our share price appreciates significantly from the date of grant. The Compensation Committee believes this structure is appropriate for our executive officers as it emphasizes performance-based stock compensation, consistent with our compensation philosophy and directly aligned with Stockholders.


27


Elements of Compensation


Key elements of our Named Executive Officer compensation programs are as follows:

Element

Purpose

Characteristics

Base Salaries

Compensates executives for their level of responsibility and individual performance. Also helps attract and retain strong talent.

Fixed component; evaluated annually

Annual Non-Equity Incentives

Promotes achieving our annual corporate and business division goals.

Performance-based cash opportunity; amount varies based on company performance.

Stock Incentives

 

Promotes (a) achieving our long-term corporate financial goals and (b) stockholder value creation.

Performance-based equity opportunity in the form of stock options and performance RSUs; amounts earned/realized will vary from the targeted grant-date fair value based on actual financial and stock price performance.


Each element of compensation is described below, including a discussion of the specific actions taken by the Compensation Committee for 2021 concerning the CEO and other executive officers.

Base Salaries for Named Executive Officers

In determining salary adjustments for the Named Executive Officers, the Compensation Committee considered each executive officer's individual performance and targeted base salary levels within a +/- 15% range around the median base salary paid for executives with similar responsibilities within the Peer Group and survey data. Adjustments are not made each year. As previously discussed, the Compensation Committee did not make adjustments from the 2020 salaries for any Named Executive Officers.

The table below shows the salaries for the named executive officers:


Name

FY2020 Salary

(000s)

FY2021 Salary

(000s)

Merit % Increase

Michael J. Brown

$

850

 

$

850

 

%

Rick L. Weller

$

500

 

$

500

 

%

Nikos Fountas

405

 

405

 

%

Kevin J. Caponecchi

$

450

 

$

450

 

%

Juan C. Bianchi

$

450

 

$

450

 

%


Annual Non-Equity Incentive Compensation

Certain members of senior and executive management, including the Named Executive Officers participate in our Stockholder approved Executive Annual Incentive Plan through which they are eligible to earn non-equity (cash) incentive awards. In determining annual non-equity incentive compensation, the Compensation Committee considers the overall performance of Euronet and the individual performance of each executive officer. In measuring individual performance, the Compensation Committee measures the level of responsibility of an executive officer against his base salary and other elements of compensation to determine whether overall compensation is sufficient to retain and motivate highly qualified individuals.

Non-equity incentive compensation to executive officers applies Company-wide performance criteria that executives directly influence, to ensure a link between annual performance and actual incentive payments. In December 2020, the Compensation Committee established 2021 incentive targets for Messrs. Brown, Weller, Fountas, Caponecchi and Bianchi based on predetermined adjusted EPS targets on a constant currency basis.

28



For 2021, adjusted EPS on a constant currency basis of $3.00, $3.50 or $4.00 would result in a payout as a percentage of base salary of 75%, 150% or 300%, respectively, for Mr. Brown, 62.5%, 125% or 250%, respectively, for Mr. Weller and 50%, 100% or 200%, respectively, for each of Messrs. Fountas, Caponecchi and Bianchi. Amounts achieved between target and maximum were calculated based on the proportionate achievement. The threshold, target and maximum adjusted EPS objectives for 2021 represent a 6%, 24% and 42% increase, respectively, over adjusted EPS of $2.82 for 2020. For 2021, the Company achieved adjusted EPS of $3.69 ($3.66 on a constant currency basis), which resulted in annual incentive compensation of $1,683,000, $825,000, €534,600, $594,000 and $594,000 being paid to Messrs. Brown, Weller, Fountas, Caponecchi and Bianchi, respectively. Results achieved between the target and maximum were calculated based on their proportionate achievement. 

Name

2020 Annual Incentive Plan Payout

2021 Annual Incentive Plan Payout

% Increase / (Decrease)

Michael J. Brown

$

 

$

1,683,000

 

n/a


Rick L. Weller

$

 

$

825,000

 

n/a


Nikos Fountas

 

534,600


n/a


Kevin J. Caponecchi

$

 

$

594,000

 

n/a


Juan C. Bianchi

$

 

$

594,000

 

n/a


Stock Incentive Programs

Our stock incentive plans are designed to promote an alignment of long-term interests between our employees and our Stockholders and to assist in the retention and motivation of employees. The Compensation Committee can grant to key employees of Euronet and its subsidiaries a variety of stock incentives, including nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, performance awards and other stock-based incentives. Grants are usually approved by the Compensation Committee for recommendation to the Board during regularly scheduled committee meetings, of which there are typically four per year occurring at regular intervals. The Compensation Committee intends that performance-based stock incentives serve as a significant portion of our executive officers’ total compensation package. Stock incentives offer the executive officers significant long-term incentives to increase their efforts on behalf of Euronet and its subsidiaries, to focus managerial efforts on enhancing Stockholder value and to align the interests of the executive officers with the Stockholders. Grants of stock incentives are designed to be competitive with the companies in the Peer Group for the level of job the executive officer holds and to motivate the executive officer to contribute to an increase in our stock price over time.

Under the terms of the Stock Incentive Plan, last approved by the Stockholders in May 2021, the exercise price of all option awards made to our Named Executive Officers or any of our other employees is fixed at the closing trading price on the date of grant. We do not have a program, plan or practice of awarding options and setting the exercise price based on the stock’s price on a date other than the grant date, and we do not have a practice of determining the exercise price of option grants by using average prices (or lowest prices) of our common stock in a period preceding or following the grant date. 

Long-Term Equity Incentive Awards

In December 2021, the Compensation Committee, together in consultation with its compensation consultants, completed the award of equity incentive compensation grants to selected managers and key contributors to the success of the Company’s achievements, including the CEO and other NEOs. To further the long-term growth and success of Euronet, the Committee proposed and the Board approved the granting of awards to motivate the leadership team to remain committed to Euronet's market opportunities in the rapidly changing Fintech market. In that regard, the grants included a combination of performance vesting stock options and performance vesting restricted stock. The RSUs and stock options vest based on service and performance conditions over three to four years. The Committee believes that these awards will provide continued motivation to the leadership team to remain with the Company and capitalize on the very substantial opportunities in the payments industry to continue to grow Stockholder value.

As described above, the Compensation Committee reviewed Euronet’s performance in recent years in relation to the executives' incentive targets to confirm that the performance measures the Compensation Committee previously set for performance-based incentive stock awards were sufficiently rigorous and demanding as demonstrated by incentive goal performance ranging from zero achieved to partial achievement to full achievement. After this review, the Compensation Committee determined that the targets and the associated level of compensation awarded to the executive officers have generally been appropriate and challenging.

We reported and included the grant date fair value of each year’s award as compensation in the summary compensation tables. These historical awards, while reported as compensation, are theoretical valuations assuming stock appreciation and anticipated achievement of the established performance goals as of the date of the grant. The value realized will depend on three important factors — a three to five year vesting period for equity awards, achievement of the predetermined performance goals and stock price appreciation. Therefore, actual compensation will differ from theoretical compensation based upon actual stock price and operating performance.

29


Compensation Mix



The Compensation Committee concluded that for 2021 executive compensation reflected an appropriate mix of base salary, incentive bonuses, service-based equity compensation and performance-based equity compensation that provides sufficient retentive and motivational value to align the interests of executives with our Stockholders.

Graphics


Benefits

Our employees in the United States are entitled to receive medical, dental, vision, life and short-term and long-term disability insurance benefits and may participate in our 401(k) plan. For 401(k) participants, we match 50% of participant deferrals on the first six percent or four percent of a participant’s deferrals, depending on which subsidiary’s plan the employee participates. Generally, employees outside the United States are covered by social benefit programs of their respective countries. Our executive officers generally participate in these benefit plans on the same basis as our other employees.

All of our employees are entitled to participate in the Employee Stock Purchase Plan ("ESPP"), which was adopted in 2001. This plan, which has been established in accordance with certain federal income tax rules set forth in Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), permits employees to purchase stock from us at a price that is equal to 85% of the lower of the trading price on the opening or closing of certain three-month “offering periods.”

Retirement Plans

We do not sponsor a defined benefit pension plan or any other deferred compensation plans for executives or any of our other employees.

 

Perquisites and Other Benefits

Perquisites and other benefits have been a very small part of our executive compensation program. The aggregate incremental cost to the Company of providing perquisites and other benefits to our CEO and the other NEOs as a group in 2021 was $12,145 and $334,372, respectively, and is included in the “All Other Compensation” column of the Summary Compensation Table on page 34. As a part of Mr. Fountas' relocation to London, UK in 2018, the Compensation Committee approved the reimbursement of personal costs for housing and school tuition. The Compensation Committee believes this reimbursement is appropriate to locate Mr. Fountas in a significant European financial center near companies important to the growth plans of Euronet and to better facilitate international travel necessary for his duties. Considered both individually and in the aggregate, the Compensation Committee believes that the perquisites and other benefits we offer to our Named Executive Officers are reasonable and appropriate.

30



Change of Control Policy

Euronet has a change in control provision in our Stock Incentive Plan that applies to all plan participants, including our NEOs. The change in control provisions were adopted to mitigate the concern that, in the event the Company is considering a change in control transaction, the employees involved in considering the transaction will be motivated to act in their own interests rather than the interests of the Stockholders. Employees may not be in a position to influence the Company’s performance after a change in control and may not be in a position to earn their incentive awards or vest in their equity awards. Thus, the provisions are designed to make any transaction neutral to the employees’ economic interests. For a more detailed discussion of change in control arrangements with our NEOs, see the "Employment Agreements" discussion below.

Employee and Director Stock Ownership and Hedging Policy

Euronet also encourages broad-based employee stock ownership through various Stockholder approved stock compensation plans. More than 350 employees have received awards in a combination of stock options and restricted stock. This means that, like other Stockholders, employees broadly participate in both the upside opportunity and the downside risk of our performance. Key components of the Stock Ownership and Hedging Policy include:

  • The allocation of stock awards to employees is progressive so that as an employee's level of responsibility and corresponding total compensation opportunity increases, an increasing percentage of total compensation is paid in performance based restricted stock and/or stock options to better align leadership with Stockholders.
  • Euronet has established an insider trading policy which applies to all directors, officers, employees, contractors, consultants and advisers of the Company, which are collectively referred to as “covered persons.” All covered persons are prohibited from trading in puts, calls or similar options on our stock or selling our stock “short.”  In addition, covered persons may not purchase financial instruments (including prepaid variable forward contracts, equity swaps, collars and exchange funds) or otherwise engage in transactions that are designed to or have the effect of hedging or offsetting any decrease in the market value of our securities. 
  • Any Award granted to the Chief Executive Officer will contain a requirement that any shares issued upon the vesting of the Award will be held for a minimum of one (1) year subsequent to the date of vesting, unless the Chief Executive Officer retires or is terminated prior to such time. 
  • Euronet’s insider trading policy prohibits directors, executive officers, employees that report directly to an executive officer and certain other designated employees from holding Euronet securities in a margin account or pledging Euronet securities as collateral for a loan.
    • Exceptions to this restriction on pledging may be granted by the General Counsel under limited circumstances when the pledgor demonstrates the financial capacity to repay a loan without resorting to the pledged securities. As of December 31, 2021, Michael Brown had 357,129 shares pledged. Other than Michael Brown, none of the remaining NEOs had shares pledged.
  • The Compensation Committee has adopted stock ownership guidelines for the Chief Executive Officer and the non-executive Directors after a compliance period of five years. The requirements for each party and their current stock ownership position are as follows based on the stock price at December 31, 2021:

Director

Required Stock Ownership

Current Stock Ownership Position

Michael J. Brown

5 times base salary

345 times base salary

Paul S. Althasen

4 times annual retainer

26 times annual retainer

Thomas A. McDonnell

4 times annual retainer

37 times annual retainer

Dr. Andrej Olechowski

4 times annual retainer

6 times annual retainer

Michael N. Frumkin (1)

Not applicable

2 times annual retainer

Andrew B. Schmitt

4 times annual retainer

32 times annual retainer

M. Jeannine Strandjord

4 times annual retainer

20 times annual retainer

Mark R. Callegari

4 times annual retainer

9 times annual retainer

(1) Mr. Frumkin was appointed to the Board of Directors on June 9, 2020 and therefore is within the five year compliance period.

31


  • While the stock ownership guidelines do not apply to the other NEOs, all of the other NEOs currently have stock ownership levels well in excess of generally established guidelines: Messrs. Weller, Caponecchi, Fountas and Bianchi hold shares (stock owned, stock issuable pursuant to options exercisable within 60 days of March 22, 2022 and beneficially owned stock at risk) valued at approximately 92, 43, 33 and 9 times their annual salaries, respectively.

Compensation Risk Assessment

Compensation policies and practices are designed to discourage inappropriate risk taking including:

  • Stock ownership requirements for our CEO and Board of Directors. 
  • Incentive plans more heavily weighted toward long-term performance to reduce the incentive to impair the prospects for long-term performance in favor of maximizing performance in one year.
  • Short-term and long-term incentive performance targets are established prior to the beginning of each performance period and are not subject to change.
  • The Compensation Committee annually reviews fixed versus variable pay mix, incentive plan metrics, and payout formulas as well as governance and compliance mechanisms such as approval authorities. The review completed in December 2021 found that no compensation programs, policies or practices were likely to have a material adverse impact on Euronet. 

Sale and Transfer of Awards

All stock option, restricted stock unit and performance-based restricted stock awards are granted under plans that specifically prohibit the sale, assignment and transfer of awards with limited exceptions such as the death of the award recipient.  In addition, the Compensation Committee may allow an award holder to assign or transfer an award.

Adjustments to Compensation Plan

We currently have no formal policy on recapturing salary or incentive awards (equity or cash) granted to a Named Executive Officer in the event that we are required to restate our financial statements (whether arising from conduct or actions of the Named Executive Officer, or otherwise). There is currently no procedure to recover (“claw back”) an element of compensation that has been paid and becomes final. The Compensation Committee believes that, despite the lack of a formal claw back policy, we have other policies and procedures in place that would deter and discourage Named Executives Officers from engaging in conduct or actions that may cause us to restate our financial statements. These include: (i) the forfeiture of outstanding equity awards upon termination for cause; (ii) the Compensation Committee's discretion over the value of equity award grants that are made annually; and (iii) the vesting of performance-based awards granted to our Named Executive Officers generally occurs over a three to five year period. However, we intend to adopt such a policy after the SEC adopts final rules related to compensation claw backs pursuant to the Dodd-Frank Act.

Tax Treatment

Section 162(m) of the Internal Revenue Code (“Section 162(m)”) generally provides that publicly held companies may not deduct compensation paid to certain of their top executive officers to the extent such compensation exceeds $1 million per officer in any year. The exemption from the deduction limit under Section 162(m) for “performance-based compensation” has been repealed, effective for taxable years beginning after December 31, 2017, such that compensation paid to our “covered employees” in excess of $1 million will not be deductible unless it qualifies for transition relief applicable to certain arrangements in place as of November 2, 2017. The Compensation Committee will continue to monitor the applicability of Section 162(m) of the Code to its ongoing compensation arrangements. Because of ambiguities and uncertainties as to the application and interpretation of Section 162(m) and the regulations issued thereunder, including the uncertain scope of the transition relief under the legislation repealing the “performance-based compensation” exemption from the deduction limit, no assurance can be given that any compensation that may have been (or if granted under a binding written contract in place as of November 2, 2017 may be) intended to satisfy the requirements for exemption from Section 162(m), in fact will be exempt. In determining the form and amount of compensation for our NEOs, the Compensation Committee may continue to consider all elements of the cost of such compensation, including the potential impact of Section 162(m). While the Compensation Committee considers the deductibility of awards as one factor in determining executive compensation, the Compensation Committee may also look at other factors in making its decisions, and retains the flexibility to award compensation that it determines to be consistent with the goals of our executive compensation program even if the awards are not deductible by us for tax purposes.

32


Recent Advisory Vote on Executive Compensation

The Company conducts an advisory vote on executive compensation every year at its annual meeting. While the vote is not binding on the Company, the Board or the Compensation Committee, the Compensation Committee believes that an annual advisory vote on executive compensation offers Stockholders the opportunity to express their views regarding the Company’s compensation program and the Compensation Committee’s decisions on executive compensation. The Board and the Compensation Committee value the opinions of Stockholders and the Compensation Committee will consider Stockholders’ concerns and evaluate whether any actions are necessary to address those concerns.


At last year’s annual meeting, over 82% of the votes cast on the advisory vote on executive compensation were in favor of the Company’s NEO compensation as disclosed in the proxy statement. The Board and Compensation Committee believe this affirms that our Stockholders generally support the Company's approach to executive compensation. Accordingly, the Compensation Committee has taken no specific actions to modify our executive compensation program as a direct result of these non-binding, advisory votes but, rather, has continued to oversee the program in accordance with its best judgment and stated governing principles.


COMPENSATION COMMITTEE REPORT



     The Compensation Committee has reviewed the Compensation Discussion and Analysis presented above with management, and, based on that review, has recommended to the Board that the Compensation Discussion and Analysis be included in this proxy statement.

Compensation Committee

Andrew B. Schmitt, Chair

Thomas A. McDonnell

M. Jeannine Strandjord

Dr. Andrzej Olechowski

Mark R. Callegari

Paul S. Althasen


     The Compensation Committee report and the “Compensation Discussion and Analysis” is not deemed “soliciting material” and is not deemed filed with the SEC or subject to Regulation 14A or the liabilities under Section 18 of the Exchange Act.

33


 


COMPENSATION TABLES

Summary Compensation Table

The following table sets forth certain information regarding the compensation awarded or paid to our Chief Executive Officer, our Chief Financial Officer and the three other most highly compensated of our executive officers (the “Named Executive Officers”) for the year ended December 31, 2021 for the periods indicated:


Name and Principal Position

Year

 

Salary

 

Bonus

 

Stock

Awards(1)

 

Option

Awards(2)

 

Non-Equity

Incentive

Compensation

 

All Other

Compensation

 

Total

 

Michael J. Brown

2021

 

$

850,000

 

 

$

4,567,864

 

$

4,567,863

 

$

1,683,000

 

$

12,145

(4)

$

11,680,872

Chairman, Chief Executive Officer and President

2020

 

850,000

 

 

1,303,424

 

8,370,000

 

 

10,242

 

10,533,666

2019

 

850,000

 

 

2,500,107

 

2,500,000

 

2,550,000

 

15,666

 

8,415,773

Rick L. Weller

2021

 

500,000

 

 

1,386,576

 

1,386,629

 

825,000

 

15,634

(4)

4,113,839

Executive Vice President and Chief Financial Officer

2020

 

500,000

 

 

401,421

 

5,380,000

 

 

10,242

 

6,291,663

2019

 

500,000

 

 

3,664,145

 

3,664,196

 

900,000

 

10,260

 

8,738,601

Nikos Fountas (5)

2021

 

479,115

 

 

1,339,215

 

1,339,268

 

606,343

 

255,882

(3)

4,019,823

Executive Vice President and Chief Executive Officer, EFT Europe, Middle East and Africa Division

2020

 

462,186

 

 

321,078

 

5,380,000

 

 

258,682

 

6,421,946

2019

 

421,410

 

 

3,114,137

 

3,114,199

 

632,115

 

269,539

 

7,551,400

Kevin J. Caponecchi

2021

 

450,000

 

 

1,339,215

 

1,339,268

 

594,000

 

16,508

(4)

3,738,991

Executive Vice President and Chief Executive Officer, epay, Software and EFT Asia Pacific Division

2020

 

450,000

 

 

321,078

 

5,380,000

 

 

11,175

 

6,162,253

2019

 

365,000

 

 

3,114,137

 

3,114,199

 

547,500

 

11,193

 

7,152,029

Juan C. Bianchi

2021

 

450,000

 

 

1,339,215

 

1,339,268

 

594,000

 

46,348

(3)

3,768,831

Executive Vice President and Chief Executive Officer, Money Transfer Segment

2020

 

450,000

 

 

321,078

 

5,380,000

 

 

43,078

 

6,194,156

2019

 

400,000

 

 

3,114,137

 

3,114,199

 

600,000

 

44,223

 

7,272,559


  1. Compensation for restricted stock is computed in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation — Stock Compensation. Assumptions used in calculating the aggregate grant date fair value in accordance with ASC Topic 718 are set out in Note 16 to our audited consolidated financial statements contained in the Form 10-K for the fiscal year ended December 31, 2021. Restricted stock awards for each fiscal year include awards subject to performance conditions that were valued based on the assumption the highest level of the performance targets would be achieved.
    34



  2. Compensation for stock options is computed in accordance with the provisions of ASC Topic 718. Amounts represent the grant date fair value determined using the Black-Scholes-Merton model or a Monte Carlo simulation. The grant date fair values are only theoretical values and may not accurately determine present value. The actual value, if any, to be realized from an option will depend on the excess of the market value of the Common Stock over the exercise price on the date the option is exercised. Assumptions used in calculating the aggregate grant date fair value in accordance with ASC Topic 718 are set out in Note 16 to our audited consolidated financial statements contained in the Form 10-K for the fiscal year ended December 31, 2021.

  3. The following table sets forth the incremental costs to the Company of each perquisite or other benefits that are required to be quantified by SEC rules:

Named Executive Officer

 

Company-Paid

Vehicle

 

Euronet 401(K) Plan

Matching

Contribution

 

Health and Group Life Insurance

 

Home Rent

 

Tuition

 

Pension Contribution

 

Other (b)

Total

Nikos Fountas

 

$

 

$

 

$

6,684

 

 

$

169,874

 

$

35,514

 

$

43,810

 

$

$

255,882

Juan C. Bianchi

 

7,200

 

8,700

 

29,454

(a)

 

 

 

 


994

46,348


(a) Mr. Bianchi is Executive Vice President - Chief Executive Officer, Money Transfer Segment, which is headquartered in California, and as such, he participates in a health insurance plan that is not generally available to all salaried employees. 

(b) Mr. Bianchi received an anniversary gift valued at $994.


         4. Other compensation for Messrs. Brown, Weller and Caponecchi is comprised of matching contributions under the Euronet 401(k) Plan and group life insurance premiums.


        5. Mr. Fountas was paid in British pounds during 2021 and the U.S. dollar amounts disclosed for salary, non-equity incentive compensation and other compensation were converted using the average foreign currency exchange rate of $1.3755 per pound for the period over which the amounts were paid. Restricted stock and option awards are valued in U.S. dollars; therefore, no foreign currency conversion occurs.


Grants of Plan-Based Awards for 2021

The following table summarizes estimated possible payouts under non-equity incentive plan awards made to Named Executive Officers during the fiscal year ended December 31, 2021. See "Compensation Discussion and Analysis - Elements of Compensation - Annual Non-Equity Incentive Compensation" on page 28 for a description of the performance criteria for these awards.

 

 

Estimated Possible Payouts Under

Non-Equity Incentive Plan Awards

Name

 

Threshold ($)

 

Target ($)

 

Maximum ($)

Michael J. Brown

 

$

637,500

 

$

1,275,000

 

$

2,550,000

Rick L. Weller

 

312,500

 

625,000

 

1,250,000

Nikos Fountas

 

229,676

 

459,351

 

918,702

Kevin J. Caponecchi

 

225,000

 

450,000

 

900,000

Juan C. Bianchi

 

225,000

 

450,000

 

900,000


35


     The following table summarizes estimated future payouts under equity incentive plan awards made to Named Executive Officers during the fiscal year ended December 31, 2021.

 

 

 

 

 

Estimated Future Payouts Under Equity

Incentive Plan Awards

 

All Other

Stock

Awards:

Number of

Shares of

Stock or

Units (#)

 

All Other

Option

Awards:

Number  of

Securities

Underlying

Options (#)

 

Exercise or

Base Price

of Options

Awards

($/Sh)

 

Grant Date

Fair Value

of Stock and

Option

Awards ($)

Name

 

Grant Date

 

 

Threshold (#)

 

Target or Estimate (#)

 

Maximum (#)

 

Michael J. Brown

 

12/7/2021

(1)

 

23,611

 

31,481

 

39,351

 

 

 

 

 


 

$

4,567,864

 

 

12/7/2021

(2)

 

 

 

113,346

 

 

 

 

 

 

 

116.08

 

4,567,863

Rick L. Weller

 

12/7/2021

(1)

 

7,167

 

9,556

 

11,945

 

 

 

 

 

 

 

1,386,576

 

 

12/7/2021

(2)

 

 

 

34,408

 


 

 

 

 

 

116.08

 

1,386,629

Nikos Fountas

 

12/7/2021

(1)

 

6,922

 

9,230

 

11,537

 

 

 

 

 

 

 

1,339,215

 

 

12/7/2021

(2)

 

 

 

33,232

 


 

 

 

 

 

116.08

 

1,339,268

Kevin J. Caponecchi

 

12/7/2021

(1)

 

6,922

 

9,230

 

11,537

 

 

 

 

 

 

 

1,339,215

 

 

12/7/2021

(2)

 

 

 

33,232

 


 

 

 

 

 

116.08

 

1,339,268

Juan C. Bianchi

 

12/7/2021

(1)

 

6,922

 

9,230

 

11,537

 

 

 

 

 

 

 

1,339,215

 

 

12/7/2021

(2)

 

 

 

33,232

 


 

 

 

 

 

116.08

 

1,339,268


  1. Restricted stock award that has two components: 1) 40% of the award will vest evenly over four years subject to the Company producing at least $60 million adjusted operating income each year of vesting upon the filing of the Company's annual Form 10-K for the years ending 2022, 2023, 2024 and 2025; and 2) up to 60% of the award will vest at the end of the third calendar year subject to the Company achieving compounded annualized growth rates ("CAGR") in adjusted constant currency earnings per share. 20% of the award will vest if the Company achieves a threshold 5% CAGR, 40% of the award will vest if the Company achieves a target 7.5% CAGR, and 60% of the award will vest if the Company achieves a maximum 10% CAGR vesting upon the filing of the Company's annual Form 10-K for the year ending 2024.
  2. Stock option award that vests evenly over four years upon the achievement of a 10% increase over the share price on the date of the grant for 30 consecutive days.


36


Outstanding Equity Awards at Fiscal Year-End for 2021

The following table sets forth equity awards outstanding for the Named Executive Officers as of December 31, 2021.

 

 

Option Awards

 

Restricted Stock Awards

Name

Grant Date

Number of

Securities

Underlying

Unexercised

Options (#)

Exercisable

Number of

Securities

Underlying

Unexercised

Options (#)

Unexercisable

 

Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options

 

Option

Exercise

Price

($)

Option

Expiration

Date

 

Number of

Shares or

Units of

Stock That

Have Not

Vested  (#)

 

Market

Value of

Shares or

Units of

Stock

That

Have Not

Vested ($)

 

Equity

Incentive

Plan

Awards:

Number of

Unearned

Shares,

Units

or Other

Rights that

Have Not

Vested (#)

 

Equity

Incentive

Plan Awards:

Market or

Payout Value

of Unearned

Shares, Units

or

Other Rights

That Have Not

Vested ($)

Michael J. Brown

12/11/2012

101,844

 

 

 

 

$

23.63

12/11/2022

 

 

 

 

 

 

 

 

 

12/10/2013

67,824

 

 

 

 

45.93

12/10/2023

 

 

 

 

 

 

 

 

 

12/10/2014

67,122

 

 

 

 

56.24

12/10/2024

 





 

 

 

 

 

12/10/2015

61,277



 

 

74.72

12/10/2025

 





 






12/13/2016 59,277



73.72 12/13/2026
1,627 (2) $ 193,890




 

12/13/2017

41,971

10,493

(3)

 

 

91.99

12/12/2027

 

1,305

(4)

155,517

 

1,304

(4)

$

155,398

 

12/12/2018

24,223

16,148

(5)

 

 

111.45

12/12/2028

 

1,077

(6)

128,346

 

2,153

(6)

256,573

 

12/10/2019

30,832

30,832

(7)

 

 

154.28

12/10/2029

 

1,621

(8)

193,175

 

3,240

(8)

386,111

 

12/10/2019

 

 

 

 

 

 

 

 

 

 

 

 

2,431

(9)

289,702


12/8/2020 25,000

50,000 (10) 133.22 12/8/2030








12/8/2020
25,000 (11) 50,000 (11) 133.22 12/8/2030








12/7/2021 


113,346
(1) 116.08 12/7/2031




39,351 (1) 4,689,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rick L. Weller 

12/11/2012

50,922

 

 

 

 

23.63

12/11/2022

 

 

 

 

 

 

 

 

 

12/10/2013

27,130

 

 

 

 

45.93

12/10/2023

 

 

 

 

 

 

 

 

 

12/10/2014

26,849

 

 

 

 

56.24

12/10/2024

 




 

 

 

 

 

12/10/2015

25,532



 

 

74.72

12/10/2025

 








 

12/13/2016

24,699



 

 

73.72

12/13/2026

 

678

(2)

80,797

 




 

12/12/2017

17,488

4,372

(3)

 

 

91.99

12/12/2027

 

544

(4)

64,828

 

543

(4)

64,709

 

12/12/2018

18,571

12,380

(5)

 

 

111.45

12/12/2028

 

825

(6)

98,315

 

1,651

(6)

196,750

 

4/4/2019

 

 

 

27,239

(12)

141.03

4/4/2029

 

 

 

 

 

8,863

(13)

1,056,204

 

4/4/2019

 

 

 

8,383

(14)

141.03

4/4/2029

 

 

 

 

 

2,728

(15)

325,096

 

12/10/2019

14,183

14,182

(7)

 

 

154.28

12/10/2029

 

746 

(8)

88,901

 

1,490

(8)

177,563

 

12/10/2019

 

 

 

 

 

 

 

 

 

 

 

 

1,118

(9)

133,232


11/5/2020


200,000 (16) 98.46 11/5/2030








12/7/2021


34,408 (1) 116.08 12/7/2031




11,945 (1) 1,423,486
37





Option Awards
Restricted Stock Awards
Name Grant Date

Number of

Securities

Underlying

Unexercised

Options (#)

Exercisable


Number of

Securities

Underlying

Unexercised

Options (#)

Unexercisable


Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options

Option

Exercise

Price

($)


Option

Expiration

Date


Number of

Shares or

Units of

Stock That

Have Not

Vested  (#)


Market

Value of

Shares or

Units of

Stock

That

Have Not

Vested ($)


Equity

Incentive

Plan

Awards:

Number of

Unearned

Shares,

Units

or Other

Rights that

Have Not

Vested (#)


Equity

Incentive

Plan Awards:

Market or

Payout Value

of Unearned

Shares, Units

or

Other Rights

That Have Not

Vested ($)

Nikos Fountas 12/10/2013 18,991



45.93
12/10/2023








12/10/2014 21,479



56.24
12/10/2024








12/10/2015 16,341



74.72
12/10/2025








12/13/2016 19,759



73.72
12/13/2026
542 (2) 64,590




12/12/2017 13,990 3,498 (3)

91.99
12/12/2027
435 (4) 51,839
434 (4) 51,720

12/12/2018 8,074 5,383 (5)

111.45
12/12/2028
359 (6) 42,782
718 (6) 85,564

4/4/2019


27,239 (12) 141.03
4/4/2029




8,863 (13) 1,056,204

4/4/2019


8,383 (14) 141.03
4/4/2029




2,728 (15) 325,096

12/10/2019 7,400 7,399 (7)

154.28
12/10/2029
389 (8) 46,357
778 (8) 92,714

12/10/2019












583 (9) 69,476

11/5/2020


200,000 (16) 98.46
11/5/2030








12/7/2021


33,232 (1)
116.08
12/7/2031




11,537 (1) 1,374,864


















Kevin J. Caponecchi

12/10/2014

11,849

 

 

 

 

56.24

 

12/10/2024

 




 

 

 

 

 

12/10/2015

20,426



 

 

74.72

 

12/10/2025

 




 




 

12/13/2016

19,759



 

 

73.72

 

12/13/2026

 

542

(2)

64,590

 




 

12/12/2017

13,990

3,498

(3)

 

 

91.99

 

12/12/2027

 

435

(4)

51,839

 

434

(4)

51,270

 

12/12/2018

8,074

5,383

(5)

 

 

111.45

 

12/12/2028

 

359

(6)

42,782

 

718

(6)

85,564

 

4/4/2019

 

 

 

27,239

(12)

141.03

 

4/4/2029

 

 

 

 

 

8,863

(13)

1,056,204

 

4/4/2019

 

 

 

8,383

(14)

141.03

 

4/4/2029

 

 

 

 

 

2,728

(15)

325,096

 

12/10/2019

7,400

7,399

(7)

 

 

154.28

 

12/10/2029

 

389

(8)

46,357

 

778

(8)

92,714

 

12/10/2019

 

 

 

 

 

 

 

 

 

 

 

 

 

583

(9)

69,476


11/5/2020


200,000 (16) 98.46
11/5/2030








12/7/2021


33,232 (1) 116.08
12/7/2031




11,537 (1) 1,374,864
38





Option Awards
Restricted Stock Awards

Name

Grant Date

Number of

Securities

Underlying

Unexercised

Options (#)

Exercisable

Number of

Securities

Underlying

Unexercised

Options (#)

Unexercisable

 

Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options

 

Option

Exercise

Price

($)

 

Option

Expiration

Date

 

Number of

Shares or

Units of

Stock That

Have Not

Vested  (#)

 

Market

Value of