SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
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14a-6(e)(2))
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[ ] Soliciting Material Pursuant to (S)240.14a-12
BOK FINANCIAL CORPORATION
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[BOK Financial Letterhead]
March 21, 2007
To Each Shareholder:
You are cordially invited to attend the Annual Meeting of Shareholders of
BOK Financial Corporation to be held this year in the Tulsa Room on the ninth
floor of the Bank of Oklahoma Tower, One Williams Center, Tulsa, Oklahoma on
Tuesday, April 24, 2007, at 11:00 a.m. local time. Details of the business to be
conducted at the annual meeting are given in the attached Notice of Annual
Meeting and Proxy Statement. Also enclosed is our Annual Report to Shareholders,
covering the fiscal year ended December 31, 2006.
We hope that you will be able to attend this meeting, but all shareholders,
whether or not they expect to attend the meeting, are requested to complete,
date and sign the enclosed proxy and return it in the enclosed envelope as
promptly as possible.
We look forward to seeing you at the meeting.
Sincerely,
/s/ George B. Kaiser
------------------------------------------------------
George B. Kaiser, Chairman of the
Board of Directors
/s/ Stanley A. Lybarger
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Stanley A. Lybarger, President and
Chief Executive Officer
IF YOU PLAN TO ATTEND THE 2007 ANNUAL MEETING OF SHAREHOLDERS OF BOK
FINANCIAL CORPORATION, PLEASE TAKE NOTE OF THE FOLLOWING: Due to security
measures in place at the Bank of Oklahoma Tower, it will be necessary for you to
check in at the Williams security desk on the plaza level of the Tower. You will
be required to provide identification to receive a visitor pass.
BOK FINANCIAL CORPORATION
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To be held on April 24, 2007
Each Shareholder:
Notice is hereby given that the Annual Meeting of Shareholders of BOK
Financial Corporation (the "Company" or "BOK Financial"), an Oklahoma
corporation, will be held in the Tulsa Room on the ninth floor of the Bank of
Oklahoma Tower, One Williams Center, Tulsa, Oklahoma on April 24, 2007, at 11:00
a.m. local time, for the following purposes:
1. To fix the number of directors to be elected at nineteen (19)
and to elect nineteen (19) persons as directors for a term of
one year or until their successors have been elected and
qualified; and,
2. To transact such other business as may properly be brought
before the Annual Meeting or any adjournment or adjournments
thereof.
The meeting may be adjourned from time to time and, at any reconvened
meeting, action with respect to the matters specified in this notice may be
taken without further notice to shareholders unless required by the Bylaws.
The Board recommends that shareholders vote FOR the director nominees named
in the accompanying proxy statement.
Only shareholders of record at the close of business on March 1, 2007,
shall be entitled to receive notice of, and to vote at, the annual meeting. A
complete list of shareholders entitled to vote will be available for inspection
at our offices, Bank of Oklahoma Tower, One Williams Center, Tulsa, Oklahoma
74172.
BY ORDER OF THE BOARD OF DIRECTORS
/s/ Frederic Dorwart
Frederic Dorwart, Secretary
March 21, 2007
Tulsa, Oklahoma
2
BOK FINANCIAL CORPORATION
Bank of Oklahoma Tower
Tulsa, Oklahoma 74172
PROXY STATEMENT FOR ANNUAL MEETING OF SHAREHOLDERS
To be held April 24, 2007
General
The enclosed proxy is solicited on behalf of the Board of Directors of BOK
Financial Corporation for use at our annual meeting of shareholders. The annual
meeting will be held on Tuesday, April 24, 2007, at 11:00 a.m. local time in the
Tulsa Room on the ninth floor of the Bank of Oklahoma Tower, One Williams
Center, Tulsa, Oklahoma.
These proxy materials will be mailed on or about March 21, 2007 to holders
of record of common stock as of the close of business on March 1, 2007.
Voting by proxy
You may vote at the annual meeting by completing, signing and returning the
enclosed proxy card. If not revoked, your proxy will be voted at the annual
meeting in accordance with your instructions marked on the proxy card. If you
fail to mark your proxy with instructions, your proxy will be voted FOR the
election of the nineteen (19) nominees for director listed in this Proxy
Statement.
As to any other matter that may be properly brought before the annual
meeting, your proxy will be voted as the Board of Directors may recommend. If
the Board of Directors makes no recommendation, your proxy will be voted as the
proxy holder named in your proxy card deems advisable. The Board of Directors
does not know of any other matter that is expected to be presented for
consideration at the annual meeting.
Any shareholder executing a proxy retains the right to revoke it any time
prior to exercise at the annual meeting. A proxy may be revoked by delivery of
written notice of revocation to the Secretary of BOK Financial, by execution and
delivery of a later proxy or by voting the shares in person at the annual
meeting. If not revoked, all shares represented by properly executed proxies
will be voted as specified therein.
Voting and quorum requirements at the meeting
Only holders of shares of common stock at the close of business on March 1,
2007, (the "record date") are entitled to notice of and to vote at the annual
meeting. On the record date, there were 67,522,897 shares of common stock
entitled to vote.
You will have one vote for each share of common stock held by you on the
record date.
In order to have a meeting it is necessary that a quorum be present. The
presence in person or by proxy of the holders of one-third of the outstanding
shares of common stock is necessary to constitute a quorum at the annual
meeting. Abstentions and broker non-votes will be counted for purposes of
determining the presence or absence of a quorum. Abstentions and broker
non-votes will not be counted as having voted either for or against a proposal.
3
The affirmative vote of the holders of a majority of the shares present or
represented at the meeting in which a quorum is present that actually vote for
or against the matter is required. Directors are elected by a plurality vote,
meaning that the nineteen (19) nominees receiving the highest number of votes
FOR will be elected as directors.
George B. Kaiser currently owns approximately 66.1% of the outstanding
common stock and plans to vote in person at the meeting.
Solicitation of proxies
We are paying for all our costs incurred in soliciting proxies for the
annual meeting. In addition to solicitation by mail, we may use our directors,
officers and regular employees to solicit proxies by telephone or otherwise.
These personnel will not be specifically compensated for these services. We will
pay persons holding shares of common stock for the benefit of others, such as
nominees, brokerage houses, banks, and other fiduciaries, for the expense of
forwarding solicitation materials to the beneficial owner.
Annual report
Our Annual Report to Shareholders, covering the fiscal year ended December
31, 2006, including audited financial statements, is enclosed. No parts of the
Annual Report are incorporated in this Proxy Statement or are deemed to be a
part of the material for the solicitation of proxies.
4
Security Ownership of Certain Beneficial Owners and Management
As of March 1, 2007, there were 67,522,897 shares of common stock issued
and outstanding. Mr. Kaiser is the only shareholder known by BOK Financial to be
the beneficial owner of more than five percent (5%) of its outstanding common
stock. The following table sets forth, as of March 1, 2007, the beneficial
ownership of common stock of BOK Financial, by each director and nominee, the
chief executive officer (Mr. Lybarger), the chief financial officer (Mr. Nell),
and the three other executive officers named in the Summary Compensation Table
appearing at page 24 below, and, as a group, all of such persons and other
executive officers not named in the table.
Amount and Nature of
Name of Beneficial Owner Beneficial Ownership(1) Percent of Class(2)
------------------------ -------------------- ----------------
Gregory S. Allen 2,030(3) *
C. Fred Ball, Jr. 44,654(4) *
Sharon J. Bell 85,172(5) *
Peter C. Boylan, III 1,773 *
Steven G. Bradshaw 59,334(6) *
Chester Cadieux, III 443 *
Joseph W. Craft III 0 *
William E. Durrett 103,205(7) *
Daniel H. Ellinor 21,869(8) *
Robert G. Greer 9,425(9) *
David F. Griffin 39,435(10) *
V. Burns Hargis 60,109(11) *
E. Carey Joullian, IV 3,724(12) *
George B. Kaiser 44,645,569(13) 66.1%
Judith Z. Kishner 443 *
Thomas L. Kivisto 3,101(14) *
David L. Kyle 2,281 *
Robert J. LaFortune 94,974 *
Stanley A. Lybarger 216,276(15) *
Steven J. Malcolm 944(16) *
Paula Marshall 701 *
Steven E. Nell 35,932(17) *
W. Jeffrey Pickryl 26,079(18) *
All directors, nominees and 45,457,473 67.1%
executive officers as a group
(23 persons including the above)
* Less than one percent (1%)
(1) Except as otherwise indicated, all shares are beneficially owned and the
sole investment and voting power is held by the person named.
(2) All percentages are rounded to the nearest tenth, and are based upon the
number of shares outstanding as of the date set forth above. For purposes
of computing the percentages of the outstanding shares owned by the persons
described in the table, any shares such persons are deemed to own by having
a right to acquire such shares by exercise of an option are included, but
shares acquirable by other persons by the exercise of stock options are not
included.
(3) Includes 2,030 shares owned jointly by Mr. Allen and Elizabeth Allen.
5
(4) Includes options to purchase 35,387 shares of BOKF common stock immediately
exercisable. Also includes 4,000 shares owned by Mr. Ball and Charlotte
Ball, and 5,267 shares owned by C. Fred Ball, Jr. IRA.
(5) Includes 2,791 shares owned by Ms. Bell's spouse, Gregory Allen Gray. Also
includes 18,440 shares owned by the J. A. Chapman and Leta M. Chapman Trust
(1949), of which Ms. Bell is individual trustee, and 21,329 shares owned by
the Leta McFarlin Chapman Trust (1974), of which Ms. Bell is co-trustee.
(6) Includes options to purchase 38,627 shares of BOKF common stock immediately
exercisable. Also includes 6,604 shares owned by the Steven G. Bradshaw
Revocable Trust, of which Mr. Bradshaw and Marla Bradshaw are trustees,
13,480 shares of restricted stock and 623 shares held in the BOk Thrift
Plan.
(7) Includes 6,103 shares indirectly owned by William E. Durrett Revocable
Trust, 94,208 shares indirectly owned by American Fidelity Assurance
Company, 1,121 shares indirectly owned by CPROP, INC., 199 shares
indirectly owned by CELP, and 1,574 shares indirectly owned by CAMCO.
(8) Includes options to purchase 6,460 shares of BOKF common stock immediately
exercisable. Also includes 14,670 shares of restricted stock and 64 shares
held in the BOk Thrift Plan.
(9) Includes options to purchase 1,364 shares of BOKF common stock immediately
exercisable. Also includes 4,162 shares indirectly owned by Robert G.
Greer, IRA and 1,220 shares owned by Mr. Greer's spouse, Joan Philen Greer.
(10) Includes 38,794 shares indirectly owned by Doppler Investments, L.P.
(11) Includes options to purchase 43,678 shares of BOKF common stock immediately
exercisable. Also includes 16,431 shares owned by Mr. Hargis and Ann
Hargis.
(12) Includes 1,810 shares indirectly owned by JCAP, LLC.
(13) Mr. Kaiser's address is P. O. Box 21468, Tulsa, OK 74121-1468. Also
includes 1,716,453 shares owned by Assurances Company, LLC of which Mr.
Kaiser is the sole member.
(14) Includes 3,000 shares owned by the Thomas L. Kivisto Trust.
(15) Includes options to purchase 90,504 shares of BOKF Common Stock immediately
exercisable. Also includes 15,056 shares indirectly owned by Marcia
Lybarger Living Trust, 7,744 shares indirectly owned by Stanley A.
Lybarger, IRA, 57,786 shares of restricted stock and 24 shares held in the
BOk Thrift Plan.
(16) Includes 944 shares indirectly owned by the Steven J. Malcolm Revocable
Trust.
(17) Includes options to purchase 23,696 shares of BOKF common stock immediately
exercisable. Also includes 2,782 shares of restricted stock and 336 shares
held in the BOk Thrift Plan.
(18) Includes options to purchase 20,150 shares of BOKF common stock immediately
exercisable. Also includes 5,817 shares indirectly owned by W. Jeffery
Pickryl IRA, and 112 shares held in the BOk Thrift Plan.
6
PROPOSAL ONE
ELECTION OF DIRECTORS
Nominees and vote required to elect nominees
A board of nineteen (19) directors is to be elected at the annual meeting.
The nineteen (19) nominees for director who receive the highest number of
affirmative votes of the shares voting shall be elected as directors. You may
vote the number of shares of common stock you own for up to nineteen (19)
persons. Unless you otherwise instruct by marking your proxy card, the proxy
holders will vote the proxies received by them FOR the election of each of the
nineteen (19) nominees named below.
If at the time of the annual meeting any of the nominees is unwilling or
unable to serve, all proxies received will be voted in favor of the remainder of
those nominated and for such substitute nominees, if any, as shall be designated
by the board and nominated by any of the proxies named in the enclosed proxy
form. We have no reason to believe that any of the nominees will be unable or
unwilling to serve if elected.
Term of office
The term of office of each person elected as a director will continue until
the next annual meeting of shareholders or until his or her successor has been
elected and qualified.
Family relationships
There are no family relationships by blood, marriage or adoption between
any director or executive officer of the company and any other director or
executive officer of the company.
Information about nominees
Certain information concerning the nominees to the Board of Directors of
the company is set forth below based on information supplied by the nominees.
All information is as of March 1, 2007. All references in this Proxy Statement
to "BOk" shall mean Bank of Oklahoma, National Association, and all references
to "BOT" shall mean Bank of Texas, National Association, both of which are
banking subsidiaries of BOK Financial Corporation.
Principal Occupation, Business First Year
Experience During Last 5 Years, and Became a
Name Age Directorships of Other Public Companies Director
Gregory S. Allen 44 President and CEO, Advance Food Company (manufacturer and marketer 2005
of value-added food products). Mr. Allen has served as President
of Advance Food Company since 1998.
C. Fred Ball, Jr. 62 Chairman and CEO of BOT; previously, Mr. Ball served as Executive 1999
Vice President of Comerica Bank-Texas and later President of
Comerica Securities, Inc., where he was employed from 1991 until
joining Bank of Texas in 1997.
7
Sharon J. Bell 55 Attorney and Managing Partner, Rogers and Bell (Tulsa, Oklahoma); 1993
Trustee and General Counsel, Chapman-McFarlin Interests; formerly a
Director and President of Red River Oil Company (oil and gas
exploration and development).
Peter C. Boylan, III 43 Mr. Boylan has served as CEO of Boylan Partners, LLC (investment 2005
management and advisory organization) since March 2004. From April
2002 through March 2004, Mr. Boylan served as Director, President
and Chief Operating Officer of Liberty Broadband Interactive
Television, Inc. (broadband interactive television technology
company providing services and products to cable and satellite
television operators worldwide), a company controlled by Liberty
Media Corporation. Prior to April 2002, Mr. Boylan was
Co-President, Co-Chief Operating Officer, Member of the Office of
the Chief Executive Officer, and Director of Gemstar-TV Guide
International, Inc. (media, entertainment, technology and
communications company). The Company was formed in July 2000 with
the merger of TV Guide, Inc. and Gemstar International Group
Limited.
Chester Cadieux, III 40 Chairman, President, and CEO of QuikTrip Corporation (a gasoline 2005
and retail convenience chain) since 2002. Prior to becoming Chairman,
President, and CEO, Mr. Cadieux served as Vice President of Sales and
Director for QuikTrip Corporation.
Joseph W. Craft, III 56 President and Chief Executive Officer of Alliance Resource Nominee
Partners, LLP (a diversified coal producer and marketer) since 1996.
William E. Durrett 76 Senior Chairman of the Board and Director of American Fidelity 1991
Corporation (insurance holding company), and American Fidelity
Assurance Company (a registered investment advisor). Mr. Durrett
is also the past Chairman of the Board of Integris Health.
Robert G. Greer 72 Vice Chairman of BOT; formerly Chairman of the Board, Bank of 2003
Tanglewood, N.A., since 1996; Chairman of the Board of Tanglewood
Bank, N.A. and Vice Chairman of the Board of Northern Trust Bank of
Texas; Mr. Greer is also a retired director of Jefferson-Pilot
Corporation and its subsidiary (Jefferson-Pilot Financial) which he
served on from 1975 to 2006.
David F. Griffin 41 President, Griffin Communications, L.L.C. (owns and operates CBS 2003
affiliated television stations in Oklahoma); formerly President and
General Manager, KWTV-9 (Oklahoma City).
V. Burns Hargis 61 Vice Chairman of BOK Financial and BOk, and Director of BOSC, Inc. 1993
since 1997; formerly, Attorney and Shareholder of the law firm of
McAfee & Taft (Oklahoma City, Oklahoma).
8
E. Carey Joullian, IV 46 Chairman, President and Chief Executive Officer of Mustang Fuel 1995
Corporation and subsidiaries; President and Manager, Joullian &
Co., L.L.C.; Manager, JCAP, L.L.C.
George B. Kaiser 64 Chairman of the Board of BOK Financial and BOk; President and 1990
principal owner of Kaiser-Francis Oil Company (independent oil and
gas exploration and production company).
Judith Z. Kishner 59 Manager, Zarrow Family Office, LLC; Secretary and Treasurer for 2004
Anne & Henry Zarrow Foundation (a charitable foundation); Trustee for
Zarrow Families Foundation and the Oklahoma Nature Conservancy; currently
on the Board of Directors for Anne and Henry Zarrow Foundation.
Thomas L. Kivisto 55 Chairman, President and Chief Executive Officer of SemGroup, LP 2006
(gathering, transporting, marketing and hedging services for energy
industry).
David L. Kyle 54 Chairman of ONEOK, Inc. (a diversified energy company); formerly 2001
President and Chief Executive Officer of ONEOK, Inc.
Robert J. LaFortune 80 Self-employed in the investment and management of personal 1993
financial holdings. Mr. LaFortune is also a director of Apco
Argentina, Inc.
Stanley A. Lybarger 57 President and Chief Executive Officer of BOK Financial and BOk; 1991
previously President of BOk Oklahoma City Regional Office and
Executive Vice President of BOk with responsibility for corporate
banking.
Steven J. Malcolm 58 Chairman, President and Chief Executive Officer of The Williams 2002
Companies, Inc. (energy holding company); formerly, President and
Chief Executive Officer of Williams Energy Services after serving as
senior vice president and general manager of Midstream Gas and Liquids
for Williams Energy Services.
Paula Marshall 53 Chief Executive Officer, The Bama Companies, Inc. (manufacturer and 2003
marketer of food products); Ms. Marshall is also a director of
Helmerich and Payne, Inc. (oil and gas drilling contractor) and
American Fidelity Corporation (insurance holding company). She is
also a former director of the Federal Reserve Bank of Kansas City.
9
Compensation of Directors
All non-officer directors of BOK Financial and BOk receive a single
retainer of $7,500 per year, payable quarterly in arrears in BOK Financial
common stock in accordance with the BOKF Directors Stock Compensation Plan,
whether serving on one or more of the boards of directors. Director compensation
shares are issued to each director on or before the 15th day following the end
of each calendar quarter during which such director served as a member of the
Board of Directors of BOK Financial or BOk. The BOKF Directors Stock
Compensation Plan further provides that the issuance price for the director
compensation shares is the average of the mid-points between the highest price
and the lowest price at which trades occurred on NASDAQ on the five trading days
immediately preceding the end of the calendar quarter.
All non-officer directors also are paid $500 in cash for each board of
directors or committee meeting attended (provided only one fee is paid when two
or more committees meet contemporaneously) and $1,000 in cash for each committee
meeting chaired. No such fees are paid for meetings not attended. In addition,
the Chairman of the Risk and Audit Committee receives $250 for each quarterly
earnings release conference and upon application to, and subject to the
discretion of, the Committee, $250 for each additional substantive conference
with the Company's independent auditors.
Company Directors earned the following amounts in 2006:
DIRECTORS COMPENSATION
-------------------------------- --------------------- --------------------- ------------------
Fees Earned
or
Paid in Cash Stock Awards Total
Name ($) ($) ($)
-------------------------------- --------------------- --------------------- ------------------
Gregory S. Allen $6,500 $7,500 $14,000
-------------------------------- --------------------- --------------------- ------------------
Sharon J. Bell 6,500 7,500 14,000
-------------------------------- --------------------- --------------------- ------------------
Peter C. Boylan, III 12,000 7,500 19,500
-------------------------------- --------------------- --------------------- ------------------
Chester Cadieux, III 7,000 7,500 14,500
-------------------------------- --------------------- --------------------- ------------------
William E. Durrett 1,500 7,500 9,000
-------------------------------- --------------------- --------------------- ------------------
David F. Griffin 16,000 7,500 23,500
-------------------------------- --------------------- --------------------- ------------------
E. Carey Joullian, IV 9,000 7,500 16,500
-------------------------------- --------------------- --------------------- ------------------
Judith Z. Kishner 7,000 7,500 14,500
-------------------------------- --------------------- --------------------- ------------------
Thomas L. Kivisto 5,000 3,750 8,750
-------------------------------- --------------------- --------------------- ------------------
David L. Kyle 7,000 7,500 14,500
-------------------------------- --------------------- --------------------- ------------------
Robert J. LaFortune 6,500 7,500 14,000
-------------------------------- --------------------- --------------------- ------------------
Steven J. Malcolm 7,500 7,500 15,000
-------------------------------- --------------------- --------------------- ------------------
Paula Marshall 3,000 7,500 10,500
-------------------------------- --------------------- --------------------- ------------------
Attendance of Meetings
The entire Board of Directors of BOK Financial met four times during 2006.
All directors of BOK Financial attended 75% of all meetings of the Board of
Directors and committees on which they served, except Ms. Marshall, who was
unable to attend 75% of the meetings due to business and personal conflicts.
Although BOK Financial does not have a policy with respect to attendance by the
Directors at the Annual Meeting of Shareholders, Directors are encouraged to
attend. Seventeen of the 18 members of the Board of Directors attended the 2006
Annual Meeting of Shareholders. The Board of Directors intends to meet at least
four times in 2007.
10
Director Nominations
While the Board of Directors does not have a standing nomination committee,
director candidates identified by management and members of the Board of
Directors are discussed at virtually every Board of Directors meeting. The Board
has no written policy on qualifications of directors; however, the understood
expectation is that directors will have all of the following characteristics:
(i) impeccable integrity; (ii) strong sense of professionalism, and (iii)
capability of serving the interests of stockholders, and several of the
following characteristics: (i) prominence in the community; (ii) significant
relations with one of the Company's subsidiary banks, (iii) ability to represent
the views of under-represented constituencies in the Company's market areas,
(iv) financial analytical skill and expertise, and (v) vision for social trends.
The Board of Directors will consider director candidates recommended by
stockholders if provided with the following: (i) evidence in accordance with
Rule 14a-8 of compliance with stockholder eligibility requirements, (ii) the
written consent of the candidate(s) for nomination as a director and
verification as to the accuracy of the biographical and other information
submitted in support of the candidate, (iii) a resume or other written statement
of the qualifications of the candidate(s) for nomination as a director, and (iv)
all information regarding the candidate(s) and the submitting stockholder that
would be required to be disclosed in a proxy statement filed with the SEC if the
candidate(s) were nominated for election to the Board of Directors. Any
recommendations received from stockholders will be evaluated in the same manner
that potential nominees suggested by board members, management or other parties
are evaluated. The Board of Directors encourages shareholder director candidate
recommendations.
Any stockholder that wishes to present a director candidate for
consideration should submit the information identified above pursuant to the
procedures set forth below under "Communication with the Board of Directors."
Director Independence
The Board of Directors has determined that BOK Financial is a "controlled
company," as defined in Rule 4350(c)(5) of the listing standards of the National
Association of Securities Dealers, Inc. ("NASD"), based on Mr. Kaiser's
beneficial ownership of approximately 66.1% of the outstanding common stock.
Accordingly, BOK Financial is exempt from certain requirements of the NASD
listing standards, including the requirement to maintain a majority of
independent directors on the Company's Board of Directors and the requirements
regarding the determination of compensation of executive officers and the
nomination of directors by independent directors. Nevertheless, the Company does
maintain a substantial majority of independent directors, determines upper level
management compensation through an independent board committee and nominates new
board members through board consensus.
Compensation Committee Interlocks and Insider Participation
No voting member of the Compensation Committee has served as an officer of
the Company, including its affiliates, at any time. None of the executive
officers serve as a member of the Compensation Committee of any other company
that has an executive officer serving as a member of the Company's Board of
Directors. None of our executive officers serve as a member of the board of
directors of any other company that has an executive officer serving as a member
of our Board's Compensation Committee.
11
Committees of the Board of Directors
The Risk Oversight and Audit Committee, Independent Compensation Committee
and Credit Committee are described below.
Risk Oversight and Audit Committee
During 2006, the Board of Directors of BOK Financial Corporation had a
standing Risk Oversight and Audit Committee (the "Audit Committee") comprised
solely of independent directors. The Board of Directors has adopted an Audit
Committee charter that complies with Rule 4350(d)(1) of the NASD listing
standards. The Audit Committee has the responsibility and authority set forth in
Rule 4350(d)(3) of the NASD listing standards under the revised charter. Among
other things, the Audit Committee will be responsible for overseeing the
accounting and financial reporting processes of the Company and the audits of
the financial statements of the Company. The Audit Committee is also directly
responsible for the appointment, compensation, retention and oversight of the
work of the Company's independent auditors, including the resolution of
disagreements between management and the auditors regarding financial reporting.
The current members of the Audit Committee are Messrs. Joullian (Chairman),
Allen, Boylan, Cadieux, Kyle and Malcolm. The Board of Directors has designated
Mr. Joullian as its "audit committee financial expert," as defined in Item
401(h)(2) of Regulation S-K. Mr. Joullian is an "independent director" as
defined in Rule 4200(a)(15) of the NASD listing standards. The Audit Committee
held five meetings in fiscal 2006 and intends to meet at least five times in
fiscal 2007. The Report of the Audit Committee is on page 12 of this proxy
statement.
Independent Compensation Committee
In December 2002, the Board of Directors established an Independent
Compensation Committee, consisting of independent directors, to administer a
performance based compensation plan for senior executives in accordance with the
provisions of Section 162(m) of the Internal Revenue Code. The Independent
Compensation Committee does not have a charter. The Independent Compensation
Committee consists of Messrs. Kyle (Chairman), Allen, Cadieux (non-voting),
Griffin and Kaiser (non-voting). Compensation of the Chief Executive Officer,
the direct reports to the Chief Executive Officer and other officers
participating in the Company's incentive plan are approved by the Independent
Compensation Committee. The Committee does not delegate this authority.
Compensation for all other officers is, in practice, determined by the Chief
Executive Officer and Mr. Kaiser, the Chairman of the Board. The Independent
Compensation Committee Report on Executive Compensation and the Executive
Compensation Discussion and Analysis may be found on pages 23 and 16
respectively.
Credit Committee
The purpose of the Credit Committee is to review and report to the Board of
Directors regarding the quality of the Company's credit portfolio and trends
affecting the credit portfolio. It also oversees the effectiveness and
administration of credit-related policies and reviews the adequacy of the
allowance for loan losses and reserve for off-balance sheet credit losses. The
members of the Credit Committee are Messrs. Griffin (Chairman), Boylan, Hargis,
Kaiser, Kivisto, LaFortune, Lybarger and Ms. Marshall. The Credit Committee met
eleven times during 2006 and plans to meet at least eleven times in 2007.
12
Independent Director Meetings
The Board of Directors has adopted a policy of regularly scheduled
executive sessions where independent directors will meet separate from
management. The independent directors plan to meet in executive session after
all regularly scheduled Board of Director meetings. The independent Directors
held four executive sessions during 2006. The presiding Director at the
executive sessions is Mr. Kaiser. Shareholders of the Company may communicate
their concerns to the non-management Directors in accordance with the procedures
described below under "Communication with the Board of Directors."
Communication with the Board of Directors
The Board of Directors of BOK Financial believes that it is important for
stockholders to have a process to send communications to the Board. Accordingly,
stockholders who wish to communicate with the Board of Directors, or a
particular Director, may do so by sending a letter to the Investor Relations
Manager of BOK Financial at P.O. Box 2300, Tulsa, Oklahoma 74192. The mailing
envelope should contain a clear notation indicating that the enclosed letter is
a "Stockholder-Board Communication" or "Stockholder-Director Communication."
Such letters should identify the author as a stockholder and state whether the
intended recipients are all members of the Board of Directors or certain
specified individual Directors. The Investor Relations Manager and the General
Counsel will independently review the content of the letters. Communications
which are constructive suggestions for the conduct of the business or policies
of the Company will be promptly delivered to the identified Director or
Directors. Communications which are complaints about specific incidents
involving banking or brokerage service will be directed to the appropriate
business unit for review. Director nominations will be reviewed for compliance
with the requirements identified in the section of this proxy entitled "Director
Nominations", and if meeting such requirements, promptly forwarded to the
Director or Directors identified in the communication.
Report of the Risk Oversight and Audit Committee
The Risk Oversight and Audit Committee (the Committee) oversees the
Company's financial reporting process on behalf of the Board of Directors. In
fulfilling its oversight responsibilities, the Committee discussed and reviewed
the Company's consolidated financial statements included in the Annual Report
with management and reviewed internal control over financial reporting with
management and the internal auditors. This review included discussions with
management regarding the quality, not just the acceptability, of accounting
policies. It also included the reasonableness of significant judgments, the
clarity of disclosures in the consolidated financial statements and the
effectiveness of internal control over financial reporting. Management has the
primary responsibility for establishing and maintaining internal control over
financial reporting and for assessing the effectiveness of internal control over
financial reporting. The Committee reviewed internal audit reports on the
effectiveness of management's assessment process, discussed internal control
matters with management, and reviewed the Company's compliance with legal and
regulatory requirements as necessary.
The Committee discussed and reviewed with Ernst & Young, LLP, the
independent registered public accounting firm, their opinion on the conformity
of the Company's consolidated financial statements with accounting principles
generally accepted in the United States. This discussion included their
judgments as to the quality, not just the acceptability, of the Company's
accounting policies. This discussion covered the required communications under
audit standards established by the Public Company Accounting Oversight Board
(United States), including PCAOB Auditing Standard No. 2, An Audit of Internal
Control over Financial Reporting and Standard No. 61, Communications with Audit
Committees. The Committee has reviewed the auditors' independence and obtained
written representation from Ernst & Young, LLP regarding independence matters,
in accordance with Independence Standards
13
Board Standard No. 1. In conducting this review, the Committee considered
whether any non-audit services were compatible with maintaining the auditor's
independence.
The Committee meets at least quarterly with the Company's internal auditors
and the independent registered public accounting firm regarding the overall
scope and plans for their respective audits. These meetings are conducted with
and without management present and the Committee discusses the results of the
audits, including the auditors' evaluation of internal control over financial
reporting.
Each of the members of the Audit Committee qualifies as an "independent"
Director under the current listing standards of the National Association of
Securities Dealers (NASD). The Board of Directors has appointed E. Carey
Joullian, IV as the "audit committee financial expert".
In reliance on the reviews and discussions referred to above, the Committee
recommended to the Board of Directors (and the Board has approved) that the
audited consolidated financial statements be included in the Annual Report on
Form 10-K for the year ended December 31, 2006, for filing with the Securities
and Exchange Commission.
E. Carey Joullian IV, Committee Chairman
Gregory S. Allen
Peter C. Boylan, III
Chester Cadieux, III
David L. Kyle
Steven J. Malcolm
Principal Accountant Fees and Services
Audit Fees. Fees paid to Ernst & Young, LLP ("EY") for the audit of the
annual consolidated financial statements included in BOK Financial's Annual
Report on Form 10-K, for the review of the consolidated financial
statements included in BOK Financial's Forms 10-Q for the quarters included
in the years ended December 31, 2006 and 2005 and for the audit function,
were $906,700 and $893,000 respectively.
Audit-related Fees. Fees paid to EY for the audit of BOK Financial's
employee benefit plans, testing the results of our system conversion and
other audit related functions were $125,000 and $84,000 respectively, for
the years ended December 31, 2006 and 2005.
Tax Fees. Fees paid to EY associated with tax return preparation and tax
planning were $56,027 and $18,685 respectively, for the years ended
December 31, 2006 and 2005.
All Other Fees. Fees paid to EY were $6,000 and $5,800 respectively, for
each of the years ended December 31, 2006 and 2005.
The Audit Committee has adopted a formal policy on auditor independence
requiring the approval by the Audit Committee of all professional services
rendered by BOK Financial's independent auditor prior to the commencement of the
specified services. 100% of the services described in "Audit Fees",
"Audit-Related Fees", "Tax Fees" and "All Other Fees" were approved by the Audit
Committee in accordance with BOK Financial's formal policy on auditor
independence and approval of fees.
14
Executive Officers
Certain information concerning the executive officers of BOK Financial,
BOk, BOT, Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas,
N.A., Bank of Kansas City, N.A., Colorado State Bank and Trust, N.A., and BOSC,
Inc. is set forth below:
C. Fred Ball, Jr., age 62, is Chairman and Chief Executive Officer of the
Bank of Texas and is responsible for all banking activities in the State of
Texas for BOKF. Before joining Bank of Texas in 1997, he was Executive Vice
President of Comerica Bank-Texas and later President of Comerica Securities,
Inc.
Barron D. Beal, age 40, is Executive Vice President of Wealth Management
for BOk. Mr. Beal joined BOk in 2006. Prior to joining BOk, Mr. Beal worked for
JPMorgan Chase for 17 years. Mr. Beal served as Regional Sales Director, Midwest
Region, Private Client Services from 2004 to 2006 and as Senior Market Director,
Houston and Louisiana, Private Client Services from 2002 to 2003.
Steven G. Bradshaw, age 47, is Senior Executive Vice President of BOk,
Manager of Consumer Banking & Wealth Management and Chairman of BOSC, Inc. Mr.
Bradshaw manages all Consumer Banking, Mortgage Banking, Community Development
Banking and all Wealth Management business lines for all BOKF subsidiary banks.
Before joining BOK Financial, Mr. Bradshaw spent six years managing the
brokerage operation at Sooner Federal. Mr. Bradshaw has been with BOKF for 15
years.
Charles E. Cotter, age 53, is Executive Vice President and Chief Credit
Officer for Bank of Oklahoma, and Manager of Credit Administration Division.
Previously, Mr. Cotter acted as Credit Concurrence Officer responsible for the
approval of commercial loans, the Manager of the Specialized Lending Department
and the Merchant Banking Department. Mr. Cotter has accumulated a total of 29
years of banking experience at Bank of Oklahoma and Fidelity Bank, a bank
acquired by Bank of Oklahoma.
Jeffery R. Dunn, age 44, is Chairman, President and Chief Executive Officer
of Bank of Arkansas, N.A.; previously, Mr. Dunn served as Senior Vice President
of Commercial Lending. He has been with BOk for 19 years.
Daniel H. Ellinor, age 45, is Senior Executive Vice President of Commercial
Banking for Oklahoma, Kansas City and Arkansas. Mr. Ellinor joined BOk in 2003.
Previously, he served as regional president for Compass Bank in Dallas, where he
oversaw Compass' North Texas operations. Prior to that time, Mr. Ellinor was
Bank of America's market executive for the North Texas Commercial Banking
Division.
Mark W. Funke, age 51, is President, BOk Oklahoma City and Commercial
Banking Manager, Oklahoma City. Mr. Funke is also responsible for BOk's Business
Banking Group, which manages BOk's statewide small business banking efforts, and
all of its Community Banking Offices. He is also responsible for Bank of
Arkansas, N.A. and serves as a director. He joined BOk in 1984 as Vice President
in the financial institutions department and was named to his current position
in 1997. Before joining BOk, he was a commercial lender with Republic Bank in
Houston for seven years.
Scott C. Grauer, age 42, is President and Chief Executive Officer of BOSC,
Inc. Prior to becoming President of BOSC, Inc. in 1999, Mr. Grauer served as
Senior Vice President and Manager, Investment Center for BOk. Mr. Grauer joined
BOK Financial in 1991.
15
Robert G. Greer, age 72, is Vice Chairman of BOT. Mr. Greer was formerly
Chairman of the Board, Bank of Tanglewood, N.A. and Vice Chairman of the Board
of Northern Trust Bank of Texas. Mr. Greer is also a retired director of
Jefferson-Pilot Corporation and its subsidiary (Jefferson-Pilot Financial) which
he served on from 1975 to 2006.
V. Burns Hargis, age 61, is Vice Chairman, BOK Financial and BOk and
Director of BOSC, Inc. Mr. Hargis joined BOk in November 1997. Previously, Mr.
Hargis was an attorney with the law firm of McAfee & Taft (Oklahoma City,
Oklahoma).
H. James Holloman, age 55, is Executive Vice President of BOk and Manager
of the Tulsa Private Financial Services office. Before joining BOk, he spent 12
years at First Union National Bank in Charlotte, North Carolina. Mr. Holloman
has been with BOk since 1985.
James L. Huntzinger, age 55, is Chief Investment Officer of BOk. Mr.
Huntzinger was previously Financial Manager, Capital Markets and Chief
Investment Officer of the Trust Division. He has been with BOk since 1982.
Stacy C. Kymes, age 36, is Senior Vice President and Corporate Controller
for BOK Financial. Previously Mr. Kymes served as Chief Auditor of BOK
Financial. Mr. Kymes joined BOK Financial in 1996. Prior to joining BOK
Financial he was with the public accounting firm of KPMG LLP.
Stanley A. Lybarger, age 57, is President and Chief Executive Officer of
BOK Financial and BOk. Mr. Lybarger has been with BOk for 32 years. Previously,
he was President of Bank of Oklahoma's Oklahoma City Regional Office and
Executive Vice President of Bank of Oklahoma with responsibility for corporate
banking.
Marc C. Maun, age 48, is Chairman and Chief Executive Officer of Bank of
Kansas City, N.A. Mr. Maun previously served as Senior Vice President and
Manager of Corporate Banking for BOk. Mr. Maun has been with BOk for 22 years.
John C. Morrow, age 51, is Senior Vice President and serves as Director of
Financial Accounting and Reporting. He joined BOK Financial in 1993. He was
previously with Ernst & Young LLP for 10 years.
Steven E. Nell, age 45, is Executive Vice President and Chief Financial
Officer for BOK Financial and BOk. Mr. Nell previously served as Senior Vice
President and Corporate Controller for BOK Financial. Before joining BOK
Financial in 1992, Mr. Nell was with Ernst & Young LLP for 8 years.
Don T. Parker, age 46, is Executive Vice President and Chief Information
Officer of BOK Financial. Mr. Parker joined the Company in 2005. He previously
served as Senior Vice President and Director of Information Services of Comerica
Bank, a position he held from February 1999 to July 2005. Prior to joining
Comerica Bank, Mr. Parker was a Senior Vice President and General Manager of
Consolidation Services at National City Incorporated in Cleveland, Ohio.
W. Jeffrey Pickryl, age 55, is Senior Executive Vice President/Regional
Banks for BOK Financial. Mr. Pickryl was previously an Executive Vice President
for BOk, responsible for Commercial Banking in Tulsa, as well as statewide
energy and real estate lending. Before joining BOk in 1997, he was president and
Chief Credit Officer for Liberty Bancorp, Inc., where he worked for 14 years.
16
David A. Ralston, age 50, is Chairman of Bank of Arizona. He previously
served as Senior Vice President and Manager of Commercial Real Estate, Tulsa.
Mr. Ralston has been with BOK Financial since 1984.
Paul A. Sowards, age 54, is President of Bank of Albuquerque. Before
joining Bank of Albuquerque in March 2000, Mr. Sowards was President of Bank of
America in New Mexico. Prior to his election as President in New Mexico, Mr.
Sowards was Executive Vice President and Commercial Banking Market Manager,
responsible for commercial lending, treasury management and capital markets.
Thomas S. Swiley, age 57, is President and Director of Bank of Texas. Prior
to joining Bank of Texas in March 2001, Mr. Swiley was Managing Director and
Credit Products Executive, with responsibility for the Southwest region, for
Bank of America.
Gregory K. Symons, age 54, is Chairman and Chief Executive Officer,
Colorado State Bank and Trust and is responsible for commercial banking. He
previously served as Chairman and Chief Executive Officer of Bank of Albuquerque
and was responsible for commercial banking in New Mexico. He previously served
as a Senior Vice President for BOk. Mr. Symons has been with BOK Financial for
28 years.
James F. Ulrich, age 55, is Chairman and Chief Executive Officer for Bank
of Albuquerque. Before assuming his current position, Mr. Ulrich served as
Senior Vice President, Investor Relations and Mergers and Acquisitions. Prior to
that time, Mr. Ulrich served as director of Human Resources and Manager, Tulsa
Metropolitan Commercial Lending Department. Mr. Ulrich has been with BOK
Financial since 1982.
Compensation Discussion and Analysis
Executive Compensation Program Overview
In 2002, the Board of Directors established the Independent Compensation
Committee (for purposes of this analysis the "Committee") to administer
performance based compensation plans for senior executives in accordance with
the provision of Section 162(m) of the Internal Revenue Code. The Committee, the
voting members of which are independent within the meaning of 162(m), has
responsibility for establishing, implementing and approving the Company's
general compensation philosophy with regard to the senior executive officers
that participate in the Company's Executive Incentive Plan which was approved by
shareholders in 2003. The Committee receives guidance from the Chief Executive
Officer (the "CEO") , who assists in evaluating employee performance,
recommending business performance targets and objectives and suggesting salary
levels and awards for executives (other than himself).
The BOK Financial executive compensation program is designed to attract and
retain executives whose judgment, leadership abilities and special efforts
result in successful operations for the company and an increase in shareholder
value. Various components of the program work together to:
|X| Reward sustained, above peer performance
|X| Encourage both individual performance and teamwork
|X| Link compensation to operational results
|X| Align executive interests with shareholder interests
|X| Keep BOK Financial compensation competitive with peer banks
|X| Create long-term commitment to the Company
17
The BOK Financial executive compensation program includes:
|X| Salary
|X| Executive Incentive Compensation (annual and long-term)
|X| Pension Plan
|X| 401(k) Thrift Plan
|X| Deferred Compensation
The Committee meets as often as necessary to perform its duties and
responsibilities. The Committee met two times in 2006 and its members included
David L. Kyle (Chairman), Gregory S. Allen, Chester E. Cadieux, III
(non-voting), David F. Griffin, and George B. Kaiser (non-voting).
Throughout this proxy statement, the Chief Executive Officer, Chief
Financial Officer and the other individuals included in the Summary Compensation
Table on page 24, are referred to as the "named executives".
Factors Used for Establishing Executive Compensation Levels
The following is an explanation of the primary data, metrics and criteria
used by the Committee to determine compensation as more fully described in
"Components of Compensation" below:
Earnings Per Share Growth Compared to Peers
|X| Both the annual and long-term incentive under the Executive
Incentive Plan use as a measure Company per share earnings growth
compared to peer group per share earnings growth ("EPS Growth").
|X| The Committee views EPS Growth as an important variable used in
public markets to measure profitability and determine the
company's stock price and, thus, shareholder value.
Net Direct Contribution
|X| Net Direct Contribution is a financial calculation that
represents all key components of Company profit controlled by an
executive in her or his business unit.
|X| The BOK Financial annual budget, which represents the Company's
plan to meet or exceed the future earning per share of the
Company's peer group, is developed based on the anticipated Net
Direct Contribution of each individual business unit.
|X| Linking compensation to Net Direct Contribution motivates
executives to achieve superior results in their particular
business units, contributing to Company wide profitability.
Individual Performance Goals
|X| At the beginning of each year, the CEO meets with each of the
named executives to establish individual performance goals.
|X| Progress is discussed with each executive periodically throughout
the year.
18
|X| At the end of the year, the CEO evaluates the extent to which the
individual goals have been attained and recommends downward
adjustments of annual and long-term compensation to the Committee
if warranted.
Peer Group Compensation Data
|X| The Company's internal compensation group completes an annual
peer review of executive compensation using publicly available
information, including proxy statements.
|X| The Independent Compensation Committee uses this information to
assist in setting salary and executive incentive plan targets.
|X| In addition, every two years an unaffiliated national executive
compensation consulting firm is engaged to review the
competitiveness of the Company's executive compensation.
BOK Financial's peer group is determined annually and includes:
|X| Publicly-traded United States bank holding companies as defined
in the SNL Securities Public Trading BHC database.
|X| A minimum of twenty-six bank holding companies.
|X| An equal number of companies above and below BOK Financial's
asset size each of which may not be more than twice BOK
Financial's size nor less than half its size (the "Size
Requirements"). Asset size is determined at the end of the
calendar year.
|X| If there are not twenty-six bank holding companies that meet the
Size Requirements, the Committee has historically added an equal
amount of bank holding companies above and below the Size
Requirements until twenty-six bank holding companies are included
in the Peer Group.
For 2006 the peer group included:
Name Total Assets(1)
--------------------------------------------------- --------------
M&T Bank Corporation 57,064,905
--------------------------------------------------- --------------
Marshall & Ilsley Corporation 56,230,000
--------------------------------------------------- --------------
UnionBanCal Corporation 52,619,576
--------------------------------------------------- --------------
Zions Bancorporation 46,970,226
--------------------------------------------------- --------------
Commerce Bancorp, Inc. 45,264,760
--------------------------------------------------- --------------
Mellon Financial Corporation 41,478,000
--------------------------------------------------- --------------
TD Banknorth Inc. 40,159,085
--------------------------------------------------- --------------
First Horizon National Corporation 37,918,259
--------------------------------------------------- --------------
Huntington Bancshares Incorporated 35,329,019
--------------------------------------------------- --------------
Compass Bancshares, Inc. 34,199,755
--------------------------------------------------- --------------
Synovus Financial Corp. 31,864,958
--------------------------------------------------- --------------
The Colonial Bankgroup, Inc. 22,784,249
--------------------------------------------------- --------------
Associated Banc-Corp 20,861,384
--------------------------------------------------- --------------
Sky Financial Group, Inc. 17,720,481
--------------------------------------------------- --------------
Mercantile Bankshares Corporation 17,716,025
--------------------------------------------------- --------------
Webster Financial Corporation 17,097,471
--------------------------------------------------- --------------
First Citizens BancShares, Inc. 15,725,343
--------------------------------------------------- --------------
19
Commerce Bancshares, Inc. 15,230,349
--------------------------------------------------- --------------
Fulton Financial Corporation 14,919,523
--------------------------------------------------- --------------
City National Corporation 14,874,457
--------------------------------------------------- --------------
TCF Financial Corp 14,669,734
--------------------------------------------------- --------------
The South Financial Group, Inc. 14,130,681
--------------------------------------------------- --------------
Citizens Banking Corporation 14,008,351
--------------------------------------------------- --------------
Cullen/Frost Bankers, Inc. 13,224,000
--------------------------------------------------- --------------
Valley National Bancorp 12,395,027
--------------------------------------------------- --------------
Bancorpsouth, Inc. 12,038,807
--------------------------------------------------- --------------
BOK Financial Corp 18,059,624
--------------------------------------------------- --------------
(1)For period ending December 31, 2006.
Components of Executive Compensation
Salary - Executives receive a base salary which is paid in cash twice
monthly. Each year the Compensation Committee reviews executive base salaries to
determine if adjustments should be made in view of a change in executives' roles
and responsibilities, value added to the company, individual performance,
experience, evaluation of peer data, and overall success of the company. The
Committee considers the reports of performance and recommendations of the CEO,
as well as peer data compiled by the Company's internal compensation group and
the independent consultant. The Compensation Committee has historically sought
to align executive compensation with the peer group average for related
executive roles and experience.
Executive Incentive Compensation - The Executive Incentive Plan allows the
named executives, and certain executives that report directly to, or are
designated by, the CEO, to earn i) an annual cash incentive, which has
historically been paid in the first quarter of the year following that to which
the service relates, and ii) long-term incentive, which is paid in stock options
or performance shares, or a combination thereof (at the option of the
executive). Stock options and performance shares are awarded on the second
Friday of January. The number of options and/or shares is subsequently adjusted
at the end of the three year performance period discussed below.
Annual Incentive - Annual incentive is based on a combination of EPS Growth
and Net Direct Contribution, subject to downward adjustment for failure to meet
individual performance goals. The Compensation Committee receives
recommendations from the CEO and determines the allocation between EPS Growth
and Net Direct Contribution to be used in calculating each named executive's
annual incentive. Currently, all named executive officers (other than the CEO
and CFO) receive 60% of their annual incentive based on Net Direct Contribution
and 40% of their annual incentive based on EPS Growth. Because the
responsibilities of CEO and CFO are not tied to any one business unit but
include the Company as a whole, their annual incentive is based only on EPS
Growth.
The target annual incentive compensation has historically been 50% of the
named executives' annual salaries except the target has been 75% of annual
salary for the CEO. A participant earns an annual incentive based on a matrix
where 33% of the targeted annual incentive compensation is earned if 80% of the
goal is met, 100% of the targeted incentive compensation is earned if 100% of
the goal is met, and 200% of the targeted incentive compensation is earned if
120% of the goal is met, as illustrated in the following matrix:
20
Annual Incentive Grid Graph shown here. Data points reflected below.
Actual vs. Goal Incentive Payout
80% 33%
85% 50%
90% 67%
95% 83%
100% 100%
105% 125%
110% 150%
115% 175%
120% 200%
EPS Growth for annual incentive is measured by comparing the earning per
share growth of the median of the peer group of banks for a trailing two-year
period determined as of the end of the year in respect to which the annual
incentive is to be paid.
Long-term Incentive - Long-term incentive is based solely on EPS Growth,
subject to downward adjustment for failure to meet individual performance goals.
The target has historically been 100% of annual salary for all named executives
other than the CEO whose target is 160% of annual salary.
An executive earns long-term incentive based on a matrix pursuant to which
25% of the targeted long-term incentive compensation is earned if the goal less
five percentage points is met, 100% of the targeted long-term incentive
compensation is earned if 100% of the goal is met, and 150% of the targeted
long-term compensation is earned if the goal plus five percentage points is met,
as illustrated in the following matrix:
Options / Performance Shares Graph shown here. Data points reflected below.
Performance Level % of Base
-5 p.p. 25%
-4 p.p. 40%
-3 p.p. 55%
-2 p.p. 70%
-1 p.p. 85%
0 p.p. 100%
1 p.p. 110%
2 p.p. 120%
3 p.p. 130%
4 p.p. 140%
5 p.p. 150%
EPS Growth for long-term incentive is measured by comparing the earnings
per share growth of the median of a peer group of banks for the trailing
three-year period determined at the end of the three-year performance period.
21
Long-term incentive awards are paid in stock options or performance shares,
or a combination thereof, at the option of the named executive. This flexibility
allows named executives to choose the kind of award best suited to their
financial needs, age from retirement, and other personal factors.
Stock option grants vest over a seven year period. Performance shares vest
only on the fifth anniversary of the last day of the year for which the
performance shares were issued and must be held for three years unless company
stock ownership guidelines are met. Current stock ownership guidelines require
the CEO to own company stock in an amount not less than three times his base
salary. All other named executives must own company stock in an amount not less
than two times salary. Shares owned outright, performance shares, and value of
in-the-money stock options are included in the calculation of ownership amounts.
Up to fifty percent of the annual incentive compensation and fifty percent
of the long-term compensation may be adjusted downward at the discretion of the
Committee. The CEO recommends downward adjustments based on failure of named
executives to attain individually assigned goals.
Thrift Plan - Executive may contribute to the BOK Thrift Plan, a 401(k)
eligible plan. Employee contributions are matched by the company up to 6% of the
base compensation based on years of service. Participants may direct the
investments of their accounts in a variety of options, including BOK Financial
common stock.
Pension Plan - The Pension Plan was established in 1987 as a cash balance
defined benefit pension plan. Benefits are determined based on a hypothetical
account balance that accumulates over time. The account balances grows based on
a 5.25% interest credit on prior balances. In 2006, the company curtailed its
contributions to the pension plan for all employees, including named executives,
however, the hypothetical amounts continue to grow based on interest credit.
Special Grants - In 2001, BOk adopted a plan to extend the life of stock
options granted in 1997, 1998 and 1999 by two years. Each year, on the day that
one-seventh of the 1997, 1998 and 1999 options expire, new stock options are
granted in the same number (the "Special Options"). The Special Options vest two
years after the grant date and expire 45 days after vesting. The exercise price
for the Special Options is the market value for BOK Financial common stock on
NASDAQ on the day of grant.
Deferred Compensation - The named executives are each party to an
individual Deferred Compensation Agreement that permitted, until year-end 2004,
the deferral of certain compensation. The CEO is the only named executive
officer that is party to an Amended and Restated 409A Deferred Compensation
Agreement which currently allows awards of performance shares and options to be
deferred. The executive Deferred Compensation agreements are discussed in
further detail under "Nonqualified Deferred Compensation" on page 36.
Perquisites and Other Personal Benefits - Other than the participation in
the plans and programs described above, benefits which are very immaterial in
nature, or benefits which are provided to employees generally such as health and
dental insurance, the Company does not provide perquisites or other personal
benefits to named executive officers.
Compensation Philosophy and Objectives
The BOK Financial executive compensation program has many objectives, all
of which are designed to enhance Company value. Because no single type of
compensation award or performance criteria could achieve all objectives, several
types of compensation performance criteria and awards are used to achieve the
maximum benefit from executive compensation.
22
There is no pre-established policy or target for allocating executive
compensation between cash and equity, long-term and short-term. Rather, the
Committee considers its varied objectives, personal performance, company
performance and data regarding peer group compensation to establish the
appropriate level and mix of incentive compensation. The Committee has generally
chosen not to consider the benefits to named executives from previously awarded
compensation other than to establish a baseline for future compensation.
Company executive compensation objectives include:
Sustained, Above Peer Performance - BOK Financial rewards sustained, above
peer performance through a five year compensation continuum in the Executive
Incentive Plan consisting of a two year EPS Growth look back for annual
compensation and a three year forward looking EPS Growth for long-term.
Individual Performance and Teamwork - Annual incentive compensation
promotes individual performance with a percentage of annual incentive
compensation being based on Net Direct Contribution (except for the CEO and CFO)
and a percentage being based on EPS Growth, with potential downward adjustments
for failure to meet individual performance goals. Long-term compensation, based
entirely on EPS Growth, promotes teamwork by rewarding success of the Company as
a whole.
Link Compensation to Operational Results - By using EPS Growth and Net
Direct Contribution as the metrics for performance, both annual and long-term
compensation are directly tied to financial performance of the Company. The
Committee also considers the financial success of the Company when determining
salary.
Competition with Peer Banks -To attract and retain a superior executive,
BOK Financial strives to provide levels of compensation comparable to competitor
banks. The Committee considers peer compensation data when establishing salary
and incentive compensation targets.
Align Executive Interests with Shareholder Interests - While BOK Financial
does not have a specific policy or target for determining the allocation between
equity and cash awards, the Company does promote equity ownership to align
executive interests with shareholder interests. All long-term executive
compensation is paid in stock options or performance shares. Stock ownership
guidelines require the CEO to own company stock in an amount not less than three
times his base salary. All other named executives must own company stock in an
amount not less than two times base salary.
Long-term Commitment to the Company - BOK Financial values company
experience and stability of operations. BOK promotes loyalty through an extended
seven year stock option vesting period and a five year performance share vesting
period. Further, long-term incentive is earned after a three year performance
period.
Stock Option Grant Policy
In 2004, BOK Financial initiated a policy of granting all Company stock
options, to both named executives and all other Company employees, on the first
business Friday in January (other than the "Special Options" described above).
This date was chosen by the Chief Executive Officer and the Chairman of the
Board and is also the date that performance shares are awarded pursuant to the
Executive Incentive Plan. In 2006, the pre-established grant date was changed to
the second business Friday in January to account for administrative challenges
during the holiday season (the "Grant Date").
All stock options awarded by BOK Financial are priced at the market value
for BOK Financial common stock on NASDAQ as of the Grant Date. There is no
program or policy to coordinate the
23
granting of options with the release of material non-public information as all
grants occur on the Grant Date, including those made to new executive officers.
Tax and Accounting Considerations
Section 162(m) of the Internal Revenue Code - Both annual incentive and
long-term awards made pursuant to the Executive Incentive Plan are designed to
comply with Section 162(m) of the Internal Revenue Code. Section 162(m) of the
Internal Revenue Code generally limits to $1 million the amount that a
publicly-held company is allowed to deduct each year for the compensation paid
to each of the corporation's chief executive officer and four most highly
compensated executive officers other than the CEO. However, performance-based
compensation determined in accordance with IRS regulations is not subject to the
limit. In order to qualify as performance-based compensation, payments must be
computed on the basis of an objective, performance-based standard determined by
a committee that consists solely of two or more outside directors and the
material terms under which the compensation is to be paid, including the
performance goals, must be disclosed to and approved by the shareholders.
Section 409A of the Internal Revenue Code - If an executive is entitled to
nonqualified deferred compensation benefits that are subject to Section 409A of
the Internal Revenue Code, and such benefits do not comply with Section 409A,
then the benefits are taxable in the first year they are not subject to
substantial risk of forfeiture. In such case, the Service Provider is subject to
regular federal income tax, interest and an additional federal income tax of 20%
of the benefit included in the income. The Company believes all deferred
compensation benefits currently comply with 409A.
Accounting for Stock Based Compensation - Effective July 1, 2003, the
Company adopted the expense recognition provisions of the Statement of Financial
Accounting Standards ("FAS") No. 123, "Accounting for Stock-Based Compensation"
by restating prior years' financial statements. The subsequent adoption of FAS
123R did not significantly affect the Company's financial statements.
Compensation Committee Report
The Compensation Committee held two meetings during fiscal year 2006. The
Compensation Committee has reviewed and discussed the Compensation Discussion
and Analysis required by Item 402(b) of Regulation S-K with management. Based
upon such review, the related discussions and such other matters deemed relevant
and appropriate by the Compensation Committee, the Compensation Committee has
recommended to the Board of Directors that the Compensation Discussion and
Analysis be included in this proxy statement and delivered to shareholders.
INDEPENDENT COMPENSATION COMMITTEE
David L. Kyle (Chairman)
Gregory S. Allen
Chester E. Cadieux, III (non-voting)
David F. Griffin
George B. Kaiser (non-voting)
24
Executive Compensation Tables
SUMMARY COMPENSATION TABLE
The following table sets forth summary information concerning the
compensation of those persons who were, at December 31, 2006, (i) the Chief
Executive Officer (Mr. Lybarger), (ii) the Chief Financial Officer (Mr. Nell),
and (iii) the three other most highly compensated executive officers of the
Company.
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
Change in
Pension
Value
&
Non-Equity Nonqualified All
Stock Option Award Incentive Deferred Other
Name and Salary Bonus Awards ($)(2) Plan Compensation Compensation Total
Principal Position Year ($) ($) ($)(1) Compensation Earnings ($)(6) ($)
($)(4) ($)(5)
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
Stanley A. Lybarger 2006 $828,600 $0 $712,304(3) $3,004,945(3) $1,242,900 $879,312 $32,013 $6,700,074
President & Chief
Executive Officer,
BOK Financial and
BOk
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
Steven E. Nell 2006 315,000 0 21,616 173,951 315,000 47,505 21,023 894,095
Executive Vice
President, Chief
Financial Officer,
BOK Financial and BOk
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
W. Jeffrey Pickryl 2006 395,000 0 0 293,696 312,007 13,402 19,541 1,033,646
Senior Executive
Vice President,
Regional Banks for
BOK Financial
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
Steven G. Bradshaw 2006 365,000 0 87,466 143,135 282,495 38,136 27,991 944,223
Senior Executive
Vice President,
Consumer Banking and
Wealth Management,
BOk
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
Daniel H. Ellinor 2006 385,000 0 96,384 98,416 289,505 13,697 11,063 894,065
Senior Executive
Vice President, BOk
---------------------- ------ ---------- ------- ------------ -------------- --------------- -------------- ----------- -----------
(1) The amounts in column (e) reflect the dollar amount recognized for
financial statement reporting purposes for the fiscal year ended December
31, 2006, in accordance with FAS 123(R) for awards pursuant to the
Executive Incentive Plan and the amounts in column (e) consist of the
dollars recognized as expense for financial reporting purposes for the
fiscal year ended December 31, 2006 in accordance with FAS 123(R) from
non-vested shares awarded pursuant to the BOK Financial Corporation 2003
Executive Incentive Plan and thus includes amounts from awards granted in
and prior to 2006. Assumptions used in the calculation of these amounts are
included in footnote 13 to the Company's audited consolidated financial
statements for the year ended December 31, 2006 which was included in the
Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 1, 2007.
(2) The amounts in column (f) consist of the dollars recognized as expense for
financial reporting purposes for the fiscal year ended December 31, 2006 in
accordance with FAS 123(R) from stock options awarded pursuant to the BOK
Financial Corporation 2000 Stock Option Plan, the BOK Financial Corporation
2001 Stock Option Plan and the BOK Financial 2003 Stock Option Plan and
thus include amounts from awards granted in and prior to 2006. Assumption
used in the calculation of these amounts for awards granted in fiscal years
2004, 2005 and 2006 are included in footnote 13 to the Company's audited
consolidated financial
25
statements for the year ended December 31, 2006 which was included in the
Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 1, 2007. Assumption used in the calculation of these
amounts for awards granted in fiscal years 2001, 2002 and 2003 are included
in footnote 13 to the Company's audited consolidated financial statements
for the year ended December 31, 2003 which was included in the Company's
Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 12, 2004.
(3) Amounts reported in columns (e) and (f) for Mr. Lybarger reflects expense
recognized for financial reporting purposes for the fiscal year ended
December 31, 2006 due to changes in the fair value of liability awards as
determined in accordance with FAS 123 (R). The fair value of liability
awards and the related expense recognized increases or decreases in direct
relation to changes in the fair value of BOK Financial Corporation common
stock.
(4) The amounts in column (g) reflect the annual cash awards made pursuant to
the Executive Incentive Plan, which is discussed in further detail on page
19 under the heading "Components of Executive Compensation."
(5) The amounts in column (h) include (i) the actuarial increase in the present
value of the names executive officer's benefits under the Company pension
plan determined using interest rate and mortality rate assumptions
consistent with those used in the Company's financial statements and
includes amounts which the named executive officer may not currently be
entitled to receive because such amounts are not vested as follows:
Lybarger, $32,798; Nell, $7,389; Pickryl, $13,402; Bradshaw, $9,877;
Ellinor, $5,642 and (ii) Nonqualified Deferred Compensation Earnings
further described in column (d) of the Nonqualified Deferred Compensation
Table on page 36.
(6) Amounts shown in this column are derived from Company contributions to the
pension plan as follows: Lybarger $16,213; Nell, $3,973; Pickryl, $7,992;
Bradshaw, $5,441; Ellinor, $5,013 and Company matching contributions to the
401(k) Thrift Plan as follows: Lybarger $15,800; Nell, $7,050; Pickryl,
$11,550; Bradshaw, $22,550; Ellinor, $6,050.
OPTION EXERCISES AND STOCK VESTED
The following table includes certain information concerning the exercise of
stock options and the vesting of performance shares by the named executive
officers during the fiscal year 2006:
------------------------------- ------------------------------------------ ----------------------------------------------
Option Awards Stock Awards
------------------------------- ------------------- ---------------------- ----------------------- ----------------------
(a) (b) (c) (d) (e)
------------------------------- ------------------- ---------------------- ----------------------- ----------------------
Number of Shares
Acquired on Number of Shares
Exercise Value Realized Acquired on Vesting Value Realized
Name (#) on Exercise (#) on Vesting
($) ($)
------------------------------- ------------------- ---------------------- ----------------------- ----------------------
Stanley A. Lybarger 31,384(1) $1,674,019(1) -- --
------------------------------- ------------------- ---------------------- ----------------------- ----------------------
Steven E. Nell 3,527 271,881 -- --
------------------------------- ------------------- ---------------------- ----------------------- ----------------------
W. Jeffrey Pickryl 19,472 295,231 -- --
------------------------------- ------------------- ---------------------- ----------------------- ----------------------
Steven G. Bradshaw 5,552 425,958 -- --
------------------------------- ------------------- ---------------------- ----------------------- ----------------------
Daniel H. Ellinor -- -- -- --
------------------------------- ------------------- ---------------------- ----------------------- ----------------------
(1) Mr. Lybarger elected to defer the shares acquired on exercise of his stock
options pursuant to his deferred compensation plan as further described
under "Nonqualified Deferred Compensation" on page 36 herein.
26
GRANTS OF PLAN-BASED AWARDS
The following table set forth certain information with respect to (i)
non-equity annual incentive awards made pursuant to the Executive Incentive
Plan, (ii) the options and performance shares award as long-term compensation
pursuant to the Executive Incentive Plan, and (iii) stock options awarded
pursuant to the BOK Financial 2001 Stock Option Plan.
------------------- ---------- ------------------------------- ---------------------------- ------- ----------- --------- --------
Estimated Future payouts Under Estimated Future payouts Under
Non-Equity Incentive Plan Awards Equity Incentive Plan Awards
------------------- ---------- ------------------------------- ---------------------------- ------- ----------- --------- --------
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
All
Other
Stock
Awards: All Other Grant
Number Option Date
of Awards: Exercise Fair
Shares Number of or Base Value of
of Securities Price Stock
Stock Under-lying of and
or Options Option Option
Grant Threshold Target Maximum Threshold Target Maximum Units (#) Award Awards
EMPLOYEE NAME Date ($) ($) ($) (#) (#) (#) (#) ($/sh) ($)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
Stanley A. Lybarger (1) $0 $621,450 $1,242,900
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- - -- $47.05 $515,146
1/6/06 13,062 52,246 78,369
(2)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- - -- $0.00 $602,381
1/6/06 3,201 12,803 19,205
(3)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- -- - $50.61 $56,663
11/2/06(4) -- -- 8,785
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
12/4/06(4) -- -- -- -- -- -- - 8,280 $53.06 $56,056
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
12/26/06(4) -- -- -- -- -- -- - 8,039 $54.00 $55,389
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
Steven E. Nell (1) $0 $157,500 $315,000
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- - -- $47.05 $247,999
1/6/06 6,288 25,152 37,728
(2)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- -- $50.61 $5,102
11/2/06(4) -- -- - 791
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
12/4/06(4) -- -- -- -- -- -- - 745 $53.06 $5,044
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
12/26/06(4) -- -- -- -- -- -- - 965 $54.00 $6,649
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
W. Jeffrey Pickryl (1) $0 $197,500 $395,000
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- $47.05 $312,138
1/6/06 7,914 31,657 47,486 - --
(2)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- -- $50.61 $22,665
11/2/06(4) -- -- - 3,514
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
12/4/06(4) -- -- -- -- -- -- - 3,147 $53.06 $21,305
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
12/26/06(4) -- -- -- -- -- -- - 2,894 $54.00 $19,940
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
Steven G. Bradshaw (1) $0 $182,500 $365,000
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- $47.05 $138,967
1/6/06 3,524 14,094 21,141 - --
(2)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- - $0.00 $162,511
1/6/06 864 3,454 5,181 --
(3)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- -- -- - $50.61 $6,798
11/2/06(4) -- 1,054
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
-- -- -- -- -- - $53.06 $7,846
12/4/06(4) -- 1,159
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
12/26/06(4) -- -- -- -- -- -- - 2,412 $54.00 $16,619
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
Daniel H. Ellinor (1) $0 $192,500 $385,000
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
1/6/06 -- -- -- 3,795 15,178 22,767 - -- $47.05 $149,655
(2)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
1/6/06 -- -- -- 930 3,719 5,579 - -- $0.00 $174,979
(3)
------------------- ---------- -------- --------- ------------ -------- -------- ---------- ------- ----------- --------- --------
27
(1) Represents annual incentive targets established by the Independent
Compensation Committee on February 28, 2006 for service performed in 2006.
Annual incentive cash awards were finalized and approved by the Independent
Compensation Committee on February 27, 2007 and are provided in column (g),
"Summary Compensation Table" on page 24 herein.
(2) Represents stock options granted as long-term incentive pursuant to the
Executive Incentive Plan. The awards relate to services performed in 2005.
The stock options vest 1/7 each year in accordance with the BOK Financial
2003 Stock Option Plan (as amended), and terminate three years after
vesting. The number of stock options is subject to adjustment based on EPS
Growth over a three year performance period as further described in
"Compensation Discussion and Analysis" on page 20 herein.
(3) Represents performance shares granted as long-term incentive pursuant to
the Executive Incentive plan. The awards relate to services performed in
2005. Restricted stock vests on the fifth anniversary of the last day of
the year for which the performance shares were issues. The shares may not
be sold for three years unless certain stock ownership requirements are met
as further described in "Compensation Discussion and Analysis" on page 21
herein. The amount of performance shares are subject to adjustment based on
EPS Growth over a three year performance period as further described in
"Compensation Discussion and Analysis" on page 20 herein.
(4) Represents stock options awarded pursuant to the BOK Financial 2001 Stock
Option Plan. In 2001, BOk adopted a plan to extend the life of stock
options granted in 1997, 1998 and 1999 by two years. Each year, on the day
that one-seventh of the 1997, 1998 and 1999 options expire, new stock
options are granted in the same number (the "Special Options"). The Special
Options vest two years after the grant date and expire 45 days after
vesting. The exercise price for the Special Options is the market value for
BOK Financial common stock on NASDAQ on the day of grant.
(5) The exercise price for all stock option awards is the fair market value of
BOK Financial common stock on the date the award is granted. For further
discussion of the Company's stock option grant policy see page 22 herein.
(6) Amounts reported in column (l) represent the grant-date fair value of
non-vested stock and stock options awarded. The Company's policy regarding
the valuation of stock compensation is included in footnote 1 and
assumptions used in the calculation of the grant-date fair value of stock
compensation is included in footnote 13 to the Company's audited
consolidated financial statements for the year ended December 31, 2006
which was included in the Company's Annual Report on Form 10-K filed with
the Securities and Exchange Commission on March 1, 2007.
28
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
The following table includes stock options and performance shares
outstanding as of December 31, 2006.
------------------ ------------------------------------------------------------- --------------------------------------------------
Option Awards Stock Awards
------------------ ------------------------------------------------------------- --------------------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
Equity
Incentive Equity
Plan Number Incentive
Awards: of Market Plan Equity
Number Shares Value of Awards: Incentive Plan
Number of Number of of or Shares or Number of Awards: Market
Securities Securities Securities Units Units of Unearned or Payout Value
Underlying Underlying Underlying of Stock Shares, of Unearned
Unexercised Unexercised Unexercised Option Stock That Have Units or Shares, Units
Options Options Unearned Exercise Option That Non Vested Other or Other Rights
(#) (#) Options Price Expiration Have ($)(3) Rights That That have Not
Name Exercisable Unexercisable (#)(1) ($) Date Non Have Not Vested
Vested Vested ($)(5)
(#)(2) (#)(4)
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
Stanley A Lybarger 8,281 -- -- $19.02 12/2/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
8,039 -- -- $18.23 12/23/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
8,039 -- -- $18.23 12/23/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
8,039 -- -- $17.37 12/18/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
8,039 -- -- $17.37 12/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 8,039 -- $17.37 12/18/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
7,805 -- -- $28.27 12/18/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
7,805 -- -- $28.27 12/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 7,805 -- $28.27 12/18/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 7,805 -- $28.27 12/18/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
6,462 -- -- $30.50 3/24/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
6,461 -- -- $30.50 3/24/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 6,462 -- $30.50 3/24/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 6,461 -- $30.50 3/24/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 6,462 -- $30.50 3/24/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 6,462 -- $30.50 3/24/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
7,179 -- -- $37.74 1/6/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
7,177 -- -- $37.74 1/6/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 7,178 -- $37.74 1/6/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 7,177 -- $37.74 1/6/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 7,177 -- $37.74 1/6/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 7,177 -- $37.74 1/6/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 7,178 -- $37.74 1/6/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 14,414 $47.34 1/7/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 14,414 $47.34 1/7/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 14,414 $47.34 1/7/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 14,412 $47.34 1/7/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 14,413 $47.34 1/7/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 14,412 $47.34 1/7/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 14,413 $47.34 1/7/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 8,785 -- $44.00 12/17/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 8,280 -- $47.99 1/16/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 8,039 -- $46.18 2/6/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
29
-- -- 7,464 $47.05 1/5/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 7,464 $47.05 1/5/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 7,464 $47.05 1/5/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 7,463 $47.05 1/5/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 7,464 $47.05 1/5/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 7,463 $47.05 1/5/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 7,464 $47.05 1/5/2016 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 8,785 -- $50.61 12/17/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 8,280 -- $53.06 1/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 8,039 -- $54.00 2/9/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- 19,533 $1,073,924 -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- 13,249 $728,430 -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- -- -- 12,803 $703,909
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
Steven E. Nell 792 -- -- $16.17 11/2/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
745 -- -- $19.02 12/2/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
746 -- -- $19.02 12/2/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
964 -- -- $18.23 12/23/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
965 -- -- $18.23 12/23/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
965 -- -- $18.23 12/23/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,286 -- -- $17.37 12/18/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,286 -- -- $17.37 12/18/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,286 -- -- $17.37 12/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,287 -- $17.37 12/18/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,561 -- -- $28.27 12/18/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,561 -- -- $28.27 12/18/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,561 -- -- $28.27 12/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,561 -- $28.27 12/18/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,561 -- $28.27 12/18/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,818 -- -- $30.87 1/2/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,819 -- -- $30.87 1/2/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,819 -- $30.87 1/2/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,818 -- $30.87 1/2/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,819 -- $30.87 1/2/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,819 -- $30.87 1/2/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,507 -- -- $37.74 1/6/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
30
1,507 -- -- $37.74 1/6/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,508 -- $37.74 1/6/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,507 -- $37.74 1/6/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,507 -- $37.74 1/6/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,507 -- $37.74 1/6/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,508 -- $37.74 1/6/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,250 $47.34 1/6/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,249 $47.34 1/6/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,250 $47.34 1/6/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,250 $47.34 1/6/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,249 $47.34 1/6/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,250 $47.34 1/6/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,250 $47.34 1/6/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 791 -- $44.00 12/17/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 745 -- $47.99 1/16/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 965 -- $46.18 2/6/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,593 $47.05 1/5/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,594 $47.05 1/5/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,593 $47.05 1/5/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,593 $47.05 1/5/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,593 $47.05 1/5/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,593 $47.05 1/5/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 3,593 $47.05 1/5/2016 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 791 -- $50.61 12/17/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 745 -- $53.06 1/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
965 -- $54.00 2/9/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- 2,782 $152,954 -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
W. Jeffrey Pickryl 2,894 -- -- $18.23 12/23/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,538 -- $17.37 12/18/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,122 -- $28.27 12/18/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,122 -- $28.27 12/18/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,259 -- $30.87 1/2/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,258 -- $30.87 1/2/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,258 -- $30.87 1/2/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,259 -- $30.87 1/2/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
31
4,666 -- -- $37.74 1/6/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
4,666 -- -- $37.74 1/6/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 4,665 -- $37.74 1/6/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 4,665 -- $37.74 1/6/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 4,665 -- $37.74 1/6/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 4,665 -- $37.74 1/6/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 4,666 -- $37.74 1/6/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,225 $47.34 1/6/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,224 $47.34 1/6/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,225 $47.34 1/6/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,224 $47.34 1/6/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,225 $47.34 1/6/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,224 $47.34 1/6/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,225 $47.34 1/6/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,514 -- $44.00 12/17/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,147 -- $47.99 1/16/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,894 -- $46.18 2/6/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,523 $47.05 1/5/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,522 $47.05 1/5/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,523 $47.05 1/5/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,522 $47.05 1/5/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,522 $47.05 1/5/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,522 $47.05 1/5/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 4,523 $47.05 1/5/2016 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,514 -- $50.61 12/17/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 3,147 -- $53.06 1/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,894 -- $54.00 2/9/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
Steven G. Bradshaw 1,055 -- -- $16.17 11/2/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,159 -- -- $19.02 12/2/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
1,159 -- -- $19.02 12/2/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,412 -- -- $18.23 12/23/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,411 -- -- $18.23 12/23/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,413 -- -- $18.23 12/23/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,411 -- -- $17.37 12/18/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,412 -- -- $17.37 12/18/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
32
2,412 -- -- $17.37 12/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,412 -- $17.37 12/18/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,342 -- -- $28.27 12/18/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,341 -- -- $28.27 12/18/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,342 -- -- $28.27 12/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,341 -- $28.27 12/18/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,342 -- $28.27 12/18/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,576 -- -- $30.87 1/2/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,576 -- -- $30.87 1/2/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,577 -- $30.87 1/2/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,576 -- $30.87 1/2/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,576 -- $30.87 1/2/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,577 -- $30.87 1/2/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,010 -- -- $37.74 1/6/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,010 -- -- $37.74 1/6/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,009 -- $37.74 1/6/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,010 -- $37.74 1/6/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,010 -- $37.74 1/6/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,010 -- $37.74 1/6/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,010 -- $37.74 1/6/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 1,820 $47.34 1/6/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 1,819 $47.34 1/6/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 1,820 $47.34 1/6/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 1,820 $47.34 1/6/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 1,820 $47.34 1/6/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 1,820 $47.34 1/6/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 1,820 $47.34 1/6/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,054 -- $44.00 12/17/2007 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,159 -- $47.99 1/16/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,412 -- $46.18 2/6/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,013 $47.05 1/5/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,014 $47.05 1/5/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,013 $47.05 1/5/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,014 $47.05 1/5/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,013 $47.05 1/5/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,013 $47.05 1/5/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
33
-- -- 2,014 $47.05 1/5/2016 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,054 -- $50.61 12/17/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 1,159 -- $53.06 1/18/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,412 -- $54.00 2/9/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- 3,710 $203,976 -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- -- -- 2,957 $162,576
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- -- -- 3,454 $189,901
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
Daniel H. Ellinor 2,153 -- -- $37.74 1/6/2008 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
2,154 -- -- $37.74 1/6/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,153 -- $37.74 1/6/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,153 -- $37.74 1/6/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,153 -- $37.74 1/6/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,153 -- $37.74 1/6/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- 2,154 -- $37.74 1/6/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,112 $47.34 1/6/2009 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,113 $47.34 1/6/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,112 $47.34 1/6/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,112 $47.34 1/6/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,112 $47.34 1/6/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,112 $47.34 1/6/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,113 $47.34 1/6/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,168 $47.05 1/5/2010 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,169 $47.05 1/5/2011 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,168 $47.05 1/5/2012 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,168 $47.05 1/5/2013 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,168 $47.05 1/5/2014 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,168 $47.05 1/5/2015 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- 2,169 $47.05 1/5/2016 -- -- -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- 3,975 $218,546 -- --
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- -- -- 3,433 $188,746
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
-- -- -- -- -- -- -- 3,719 $204,471
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
------------------ ------------ ------------- ------------ --------- ----------- --------- ----------- ------------- --------------
34
(1) Represents stock options granted as long-term incentive pursuant to the
Executive Incentive Plan, the amount of which remains subject to adjustment
based on EPS Growth over a three year performance period as further
described in "Compensation Discussion and Analysis" on page 20 herein.
(2) Represents performance shares which are no longer subject to adjustment
based upon the three year performance period, but which have not yet
completed the five year vesting period.
(3) Market value of performance shares is based on the fair market value of
Company common stock on December 31, 2006.
(4) Represents performance shares granted as long-term incentive pursuant to
the Executive Incentive plan the amount of which remain subject to
adjustment based on EPS Growth over a three year performance period as
further described in "Compensation Discussion and Analysis" on page 20
herein.
(5) Market value of performance shares is based on the fair market value of
Company common stock on December 31, 2006.
35
PENSION BENEFITS
The majority of Company executives participate in the BOK Financial Pension
Plan (the "Pension Plan"). The Pension Plan was established in 1987 as a cash
balance defined benefit pension plan and has remained substantially unchanged
since its inception. Pension Plan benefits are determined based on a
hypothetical account balance that accumulates over time. The account balances
grow based on a 5.25% interest credit on prior balances plus a monthly account
addition based on the executive's covered pay, age at entry into the plan and
years of service. Covered pay includes base salary, shift differential and
commissions and excludes incentive compensation and bonuses. Covered pay is
limited by government regulations to not more than $220,000. All named
executives exceeded this limit for 2006. There is no supplemental plan to
make-up for benefits lost due to this government restriction.
During 2005, the Company's Board of Directors approved curtailment of
Pension Plan benefits. Effective April 1, 2006, the hypothetical accounts will
no longer be credited for amounts based on covered pay. However, the
hypothetical accounts will continue to grow based on the interest credit.
The normal retirement age under the Pension Plan is age 65. At that time, a
participant may receive a lump sum equal to the greater of their hypothetical
account balance or an amount determined by a government-mandated discount rate.
The participant may also elect to receive an annuity payment from the Pension
Plan. Various annuity forms are available, but the basic monthly annuity is
equal to the hypothetical account balance divided by 200. This annuity amount
increases at 5.25% annually over the participant's life.
The following table describes the present value of the named executive
officers' pension benefits:
---------------------------- --------------------------- --------------------------- --------------------- -------------
(a) (b) (c) (d) (e)
---------------------------- --------------------------- --------------------------- --------------------- -------------
Payments
During Last
Fiscal Year
Number of Years Credited Present Value of ($)
Service Accumulated Benefit
Name Plan Name (#)(1) ($)(2)
---------------------------- --------------------------- --------------------------- --------------------- -------------
Stanley A. Lybarger BOKF Pension Plan 31 $402,220 --
---------------------------- --------------------------- --------------------------- --------------------- -------------
Steven E. Nell BOKF Pension Plan 13 85,456 --
---------------------------- --------------------------- --------------------------- --------------------- -------------
W. Jeffrey Pickryl BOKF Pension Plan 8 131,490 --
---------------------------- --------------------------- --------------------------- --------------------- -------------
Steven G. Bradshaw BOKF Pension Plan 14 110,432 --
---------------------------- --------------------------- --------------------------- --------------------- -------------
Daniel H. Ellinor BOKF Pension Plan 1 17,441 --
---------------------------- --------------------------- --------------------------- --------------------- -------------
(1) Named executives are credited with the number of years employed by the
Company since the Pension Plan's inception in 1987, with the exception of
Mr. Lybarger whose credited service includes employment before the
inception of the Pension Plan.
(2) The calculation of present value of accumulated benefits assumes a discount
rate of 5.5 percent, Retired Pensioner's 2000 Combined Healthy mortality
(post-retirement decrement only), and a life annuity benefit at the Pension
Plan's normal retirement age of 65.
36
NONQUALIFIED DEFERRED COMPENSATION
Pursuant to individual Deferred Compensation Agreements, the named
executive officers were permitted, until year-end 2004, to defer certain
compensation. In response to IRS guidance, these Deferred Compensation
Agreements were amended in December of 2004 to preclude the deferral of future
compensation. Future deferrals would require entry into a new agreement.
Mr. Lybarger is the only named executive officer that entered into an
Amended and Restated 409A Deferred Compensation Agreement pursuant to which he
may continue to defer awards. The Company maintains a record keeping account
that reflects the number of shares received upon exercise and the number of
performance shares that are deferred. Mr. Lybarger may elect annually to convert
all or a portion of the value measure of his deferred awards from Company stock
to alternate investments. Benefits under the Amended and Restated 409A Deferred
Compensation Agreement will be paid no earlier than six months after Mr.
Lybarger's retirement or termination. However, upon a showing of financial
hardship, he may be allowed to access funds in his deferred compensation
account. Benefits shall be paid in one lump sum.
The following table describes the current balance of deferral accounts:
-------------------------- -------------------- ------------------ ---------------- -------------------- ----------------------
(a) (b) (c) (d) (e) (f)
-------------------------- -------------------- ------------------ ---------------- -------------------- ----------------------
Executive Registrant Aggregate Aggregate Aggregate Balance at
Contributions Contributions in Earnings in Withdrawals/ Last FYE
in Last FY Last FY Last FY Distributions ($)
Name ($) ($) ($) ($)
-------------------------- -------------------- ------------------ ---------------- -------------------- ----------------------
Stanley A. Lybarger $1,674,323(1) -- $846,514((2)) -- $10,186,620
-------------------------- -------------------- ------------------ ---------------- -------------------- ----------------------
Steven E. Nell -- -- 40,116(3) -- 242,590
-------------------------- -------------------- ------------------ ---------------- -------------------- ----------------------
W. Jeffrey Pickryl -- -- -- -- --
-------------------------- -------------------- ------------------ ---------------- -------------------- ----------------------
Steven G. Bradshaw -- -- 28,259(4) -- 204,373
-------------------------- -------------------- ------------------ ---------------- -------------------- ----------------------
Daniel H. Ellinor -- -- 8,055(5) -- 99,183
-------------------------- -------------------- ------------------ ---------------- -------------------- ----------------------
(1) Represents exercises of stock options and payment of cash for fractional
shares.
(2) Earnings on deferred compensation for Mr. Lybarger resulted from (i)
earnings on hypothetical portfolio assets indexed to various debt and (ii)
equity funds as well as gains reported on investments in distressed asset
and venture capital funds.
(3) Earnings on deferred compensation for Mr. Nell resulted from (i) gains
reported on investments in distressed asset and venture capital funds, (ii)
earnings from interest earned on uninvested cash accrued at BOk's money
market deposit rates and (iii) dividends paid and changes in value of BOK
Financial common stock.
(4) Earning on deferred compensation for Mr. Bradshaw resulted from (i) gains
reported on investments in distressed asset and venture capital funds, (ii)
earnings from interest earned on uninvested cash accrued at BOk's money
market deposit rates and (iii) dividends paid and changes in value of BOK
Financial common stock.
(5) Earnings on deferred compensation for Mr. Ellinor resulted from (i) gains
reported on investments in distressed asset and venture capital funds and
(ii) earnings from interest earned on uninvested cash accrued at BOk's
money market deposit rates.
37
POTENTIAL PAYMENTS UPON TERMINATION
Stanley A. Lybarger
The following table shows potential payments to the Chief Executive Officer
assuming (i) termination of existing contracts, agreements, plans or
arrangements under various circumstances at December 31, 2006 (except with
regard to "Normal Retirement" and "Early Retirement" as described below) and
(ii) a closing price of BOK Financial common stock of $54.98 (as reported on
NASDAQ as of December 29, 2006).
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
Early Normal
Executive Retirement Retirement Involuntary Involuntary
Payments Upon (Prior to (Age 65 not for Cause for Termination
Termination Voluntary Age 65) or older) Termination Cause Event
(1) Termination (2) (2) (3) Termination (4) Death Disability
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
Severance Payments $0 $0 $0 $828, 600((5)) $0 $828,600((5)) $414,300((6)) $0
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
Non-Equity $0 $0 $0 $621,450((7)) $0 $621,450((7)) $621,450((7))$621,450(7)
Incentive
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
Stock Options $0 $3,443,088((8))$3,443,088((8)) $3,443,088 $0 $3,443,088 $3,443,088 $3,443,088
(unvested and
accelerated)
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
Performance Shares $0 $2,506,263((8))$2,506,263((8)) $2,506,263 $0 $2,506,263 $2,506,263 $2,506,263
(unvested and
accelerated)
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
Tax Gross-Up $0 $0 $0 $0 $0 $0 $0 $0
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
Health Benefits $0 $6,453((9)) $0 $6,453((10)) $0 $6,453((10)) $2,868((11)) $3,227((11))
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
Employer 401(k) $0 $0 $0 $22,550((12)) $0 $22,550((12)) $11,225((13))$11,225(13)
Contribution
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
Pension Benefit $0 $0 $0 $20,845((14)) $0 $20,845((14)) $10,423((15))$10,423(15)
------------------- ---------- -------------- -------------- ----------------- ------------ -------------- -------------- ----------
(1) Does not include payments of deferred compensation which are described on
page 36 herein. Assumes CEO has been paid all amounts owed through the date
of termination. CEO has agreed that, for two years following termination
for any reason other than termination without cause, CEO will not (i)
engage in the businesses in which BOk is engaged, (ii) solicit clients of
BOk, or (iii) solicit any employees of BOk.
(2) Assumes closing price of BOK Financial common stock of $54.98 (as reported
on NASDAQ as of December 29, 2006) and salary, stock option, performance
share and benefit information as of December 31, 2006.
(3) Termination is for cause in the event of (i) any willful failure to
substantially perform CEO's obligations, (ii) any willful act materially
injurious to BOk, or (iii) any dishonest or fraudulent act. Payments to CEO
may be reduced by an amount equal to the compensation earned by CEO as a
result of his employment by another employer for the period from six months
to twelve months after termination.
(4) The CEO may terminate his employment in the event of (i) a Change in
Control, (ii) a reduction in annual salary, (iii) CEO is not elected as
President of BOk, (iv) reduction of CEO's duties and responsibilities, or
(v) a material breach of the agreement by BOk. A "Change of Control" occurs
when either (i) Mr. George Kaiser (together with affiliated entities and
family members and relatives) ceases either to be the largest shareholder
of BOK Financial or BOk (considering indirect ownership through BOK
Financial), or (ii) Mr. Kaiser ceases to be Chairman of BOk unless CEO
becomes Chairman of BOk. Payments to CEO may be reduced by an amount equal
to the compensation earned by CEO as a result of his employment by another
employer for the period from six months to twelve months after termination.
(5) Equals twelve months annual salary.
38
(6) Equals six months annual salary.
(7) Equals 75% of historical annual salary target under the Executive Incentive
Plan as further described on page 19 herein.
(8) Assumes certain conditions including (i) CEO's continued employment through
December 15, 2011, (ii) continued agreement that a candidate qualified to
become CEO has been recruited, and (iii) BOK Financial satisfactory
performance through the date of the CEO's termination giving due
consideration to the performance of the United States economy in general
and peer group financial institutions in the United States in particular.
Options expire fifteen months following CEO's termination.
(9) If CEO terminates employment after December 15, 2011, but before age 65,
CEO may continue as a part-time employee, consultant, director with special
duties or in some other capacity to the extent reasonably required to
permit CEO to continue to participate in the Company's health benefits so
long as CEO continues to owe a duty of loyalty to the Company and has not
reached the age of 65. Estimated annual heath care benefit cost of premium
to the Company is $6,453.
(10) Includes health benefits for the CEO and dependents for twelve months and
represents the estimated annual health care benefit cost of premium to the
Company. Assumes one dependent.
(11) Includes health benefits for six months and represents the estimated annual
health care benefit cost of premium to the Company.
(12) Includes 401(k) contributions for twelve months.
(13) Includes 401(k) contributions for six months.
(14) While BOK Financial no longer contributes to the CEO's pension plan, the
hypothetical account balance increases at 5.25% annually and the CEO may
receive this interest for up to twelve months.
(15) While BOK Financial no longer contributes to the CEO's pension plan, the
hypothetical account balance increases at 5.25% annually and the CEO may
receive this interest for up to six months.
The following describes potential payments to the other names executive
officers.
Steven E. Nell(1)
Mr. Nell is not subject to an employment agreement and upon termination
would not be entitled to any additional payment or accelerated vesting except as
provided to BOk employees generally. Pursuant to BOk's standard severance
policy, if Mr. Nell had been terminated without cause(2) on December 31, 2006,
Mr. Nell would have received $108,994.
Pursuant to BOK Financial employee stock option and performance share plans
in place for BOk executives generally, in the event Mr. Nell were to be
terminated without cause(2) within twelve months following a Change of
Control(3), Mr. Nell's unvested performance shares and stock options would vest
and he would have ninety days to exercise his stock options. As of December 31,
2006, Mr. Nell held $152,954 in unvested performance shares and $838,598 in
unvested stock options.
Steven G. Bradshaw and Daniel E. Ellinor(1)
Mr. Bradshaw and Mr. Ellinor are each subject to employment agreements
which commenced October 15, 2003 and may be terminated by either BOK Financial
or executive upon ninety days prior written notice. Pursuant to these
agreements, if Mr. Bradshaw or Mr. Ellinor had been terminated on
39
December 31, 2006(2) without cause, the executive would have been entitled to
receive (i) BOk's standard severance plus an additional twelve months of annual
salary ($498,312 and $436,806 respectively) and (ii) ninety days of health,
401(k) and pension benefits(4) ($8,606 and $3,803 respectively).
Additionally for two years following termination for cause(2) and one year
following termination for any other reason (including expiration of the term),
both Mr. Bradshaw and Mr. Ellinor are prohibited from soliciting customers or
employees of BOK Financial or its affiliates for which they receive $3,000 every
year the non-solicitation terms are in effect.
Pursuant to BOK Financial employee stock option and performance share plans
for BOk executives generally, in the event Mr. Bradshaw or Mr. Ellinor were
terminated without cause(2) within twelve months following a Change of
Control(3), their unvested performance shares and stock options would vest and
they would have ninety days to exercise their stock options. As of December 31,
2006, Mr. Bradshaw had $556,453 in unvested performance shares and $896,707 in
unvested stock options and Mr. Ellinor had $611,762 in unvested performance
shares and $418,932 in unvested stock options.
W. Jeffery Pickryl(1)
Mr. Pickryl is subject to an employment agreement which commenced September
29, 2003 and expires October 15, 2007. Pursuant to this agreement, if Mr.
Pickryl had been terminated on December 31, 2006 without cause(2) Mr. Pickryl
would have been entitled to receive (i) BOk's standard severance plus an
additional twelve months of annual salary for a total severance of $463,712 and
(ii) ten and one half months of health, 401(k) and pension benefits(4) equaling
$23,288.
If Mr. Pickryl were terminated without cause(2) after age 60, Mr. Pickryl's
stock options would vest as follows: if executive is 60 years old, all unvested
options that would have vested in the next 5 years would vest; if executive is
61 years old, all unvested options that would have vested in the next 4 years
would vest; if executive is 62 years old, all unvested options that would have
vested in the next 3 years would vest; if executive is 63 years old, all
unvested options that would have vested in the next 2 years would vest; if
executive is 64 years old, all unvested options that would have vested in the
next year would vest. Mr. Pickryl is currently 55 year old. In addition, if Mr.
Pickryl had been terminated on December 31, 2006 without cause(2) and certain
other conditions were met, he would have been entitled to receive an additional
$873,253 pursuant to a supplemental executive income agreement dated July 1,
2005.
For two years following termination for cause(2) and one year following
termination for any other reason (including expiration of the term), Mr. Pickryl
is prohibited from engaging in any BOk business in specified trade areas and
from soliciting customers or employees for which he receives $12,000 per year.
Pursuant to BOK Financial employee stock option and performance share plans
for BOk executives generally, in the event Mr. Pickryl were to be terminated
without cause within twelve months following a Change of Control(3), his
unvested performance shares and stock options would vest and he would have
ninety days to exercise his stock options. As of December 31, 2006, Mr. Pickryl
had no unvested performance shares and $1,603,484 in unvested stock options.
(1) Does not include payments of deferred compensation which are described on
page 36 herein. Assumes (i) that the Executive has been paid all amounts
owed through the date of termination, (ii) the closing price of BOK
Financial common stock of $54.98 (as reported on NASDAQ as of December 29,
2006), and (iii) and salary, stock option, performance share and benefit
information as of December 31, 2006. Except as expressly provided herein or
amounts owed up through the date of termination , Executive does not
receive any additional payments in the event of voluntary termination,
early retirement (prior to age 65), retirement (age 65 or older),
involuntary for cause termination, change in control, or upon death or upon
disability.
40
(2) Termination of Executive for cause occurs upon an Executive (i) failing to
substantially perform his duties, (ii) committing any act which is intend
to injure BOK Financial or its affiliates, (iii) being convicted of any
criminal act or act involving moral turpitude, (iv) committing any
dishonest or fraudulent act which is material to BOKF or its affiliates,
including reputation, or (v) refusing to obey orders of the CEO unless such
instructions would require executive to commit an illegal act, could
subject executive to personal liability, would require executive to violate
the terms of his agreement or are inconsistent with recognized ethical
standards or inconsistent with the duties of an officer of the bank.
(3) "Change of Control" occurs if Mr. George Kaiser, and/or members of the
family of Mr. Kaiser collectively cease to own more shares of the voting
capital stock of BOKF than any other shareholder (or group of shareholders
acting in concert to control BOKF to the exclusion of Mr. Kaiser,
affiliates of Mr. Kaiser or members of the family of Mr. Kaiser); or BOK
Financial ceases to own directly or indirectly more than 50% of the voting
capital stock of BOk.
(4) While BOK Financial no longer contributes to the pension plan, the
hypothetical account balance increases at 5.25% annually and the Executive
may receive this interest for the identified period.
Related Party Transaction Review and Approval Policy
BOK Financial has a written related party transaction policy, approved by
the Risk and Oversight Committee ("ROAC"), which requires all related party
transactions, including those reportable pursuant to SEC regulation S-K, Item
404(a), to be submitted to the Chief Financial Officer ("CFO") for review.
Material related party transactions must be approved by ROAC. A material
transaction is one that would require reporting on SEC Form 8-K or Form 10-K.
The related-party transaction must be intended for the benefit of the
Company and made on terms no less favorable than those terms for unrelated
persons. The CFO must also consider whether the transaction is occurring at
arm's length and the impact of the related party transaction on financial
statement accounting and disclosure.
If the CFO determines that the transaction would be material, he must
present the details and his conclusion to the Chairman of ROAC. The Chairman of
ROAC will submit the related party transaction to ROAC for approval based upon
the same criteria as considered by the CFO, in addition to such criteria as may
be deemed relevant by the members.
Certain Transactions
Certain principal shareholders, directors of the Company and their
associates were customers of and had loan transactions with BOK Financial or its
subsidiaries during 2006. None of them currently outstanding are classified as
nonaccrual, past due, restructured or potential problem loans. All such loans
(i) were made in the ordinary course of business, (ii) were made on
substantially the same terms, including interest rates and collateral, as those
prevailing at the time for comparable transactions with other persons, and (iii)
did not involve more than normal risk of collectibility or present other
unfavorable features at the time the loans were made.
Certain related parties are customers of the Company for services other
than loans, including consumer banking, corporate banking, risk management,
wealth management, brokerage and trading, or fiduciary/trust services. The
Company engages in transactions with related parties in the ordinary course of
business and in compliance with applicable regulation.
41
BOk leases office space in the Copper Oaks facility located in Tulsa,
Oklahoma, which is owned by Mr. Kaiser and affiliates. Lease payments for Copper
Oaks totaled $755,000 in 2006.
In 2006, an affiliate of BOK Financial sold Oklahoma State Income Tax
Credits to (a) George Kaiser, Chairman of the Board, receiving $4,100,000, (b)
Stan Lybarger, President and Chief Executive Officer, receiving $117,500, (c)
Burns Hargis, a Company director and executive officer, receiving $50,000, (d)
Mark Funke, an executive officer, receiving $20,000, and (e) Gregory Allen, a
Company director, receiving $440,000.
QuikTrip Corporation has entered into a fee sharing agreement with
TransFund, BOk's automated teller machine (ATM) network, respecting transactions
completed at TransFund ATMs placed in QuikTrip locations. In 2006, BOk paid
QuikTrip $1.4 million pursuant to this agreement. Mr. Cadieux, a BOK Financial
Director, is President, Chief Executive Officer, a director and a shareholder of
QuikTrip Corporation.
BOk engages in routine energy hedging transactions with SemGroup, L.P.,
Mustang Fuel Corporation, Mustang Gas Products, LLC and Eagle Gas Marketing on
terms offered to customers of BOk generally. In 2006, Mustang Fuel Corporation
hedged 668 thousand MMbtu of natural gas and SemGroup L.P. hedged 6.8 million
barrels of oil. The hedges are backed by counter party contracts. Mr. Joullian,
a director of BOK Financial, is the President of Mustang Fuel Corporation,
Mustang Gas Products, LLC and Eagle Gas Marketing. Mr. Kivitso, a director of
BOK Financial, is President of SemGroup L.P.
Insider Reporting
Based upon a review of the filings with the Securities and Exchange
Commission and written representations that no other reports were required, we
believe that all of our directors and executive officers complied during fiscal
year 2006 with the reporting requirements of Section 16(a) of the Securities
Exchange Act of 1934 with the exception of a late report in January 2006
relating to 5,881 shares acquired and 5,234 shares disposed through the exercise
of stock options for Mr. Funke; a late report in January 2006 relating to 745
shares acquired and 673 shares disposed through the exercise of stock options
for Mr. Nell; a late report in September 2006 relating to 54 shares purchased in
June 2006 by Mr. Parker's son; a late report in October 2006 relating to 1,312
shares acquired and 804 shares disposed through the exercise of stock options
for Mr. Ralston; a late report in December 2006 relating to 633 shares acquired
and 564 shares disposed through the exercise of stock options for Mr. Ralston; a
late report in April 2006 relating to 3,076 shares acquired and 2,291 shares
disposed through the exercise of stock options for Mr. Ulrich. All late reports
related to the disposal of shares through the exercise of options were reported
within ten days of the filing date and resulted from inclement weather or
delayed communications from executive compensation administration to legal
counsel.
Independent Public Accountants
Ernst & Young LLP, independent public accountants, has been reappointed by
the Board of Directors of the Company as independent auditors for the Company to
examine and report on its financial statements for 2007. Ernst & Young LLP have
been auditors of the accounts of the Company since its inception on October 24,
1990. Representatives of Ernst & Young LLP are expected to be present at the
annual meeting, with the opportunity to make a statement if they desire to do
so, and will be available to respond to appropriate questions.
42
Proposals of Shareholders
The Board of Directors will consider proposals of shareholders intended to
be presented for action at the Annual Meeting of Shareholders. According to the
rules of the Securities and Exchange Commission, such proposals shall be
included in the Company's Proxy Statement if they are received in a timely
manner and if certain other requirements are met. For a shareholder proposal to
be included in the Company's Proxy Statement relating to the 2008 Annual
Shareholders' Meeting, a written proposal complying with the requirements
established by the Securities and Exchange Commission must be received at the
Company's principal executive offices, located at Bank of Oklahoma Tower, Tulsa,
Oklahoma 74172, no later than December 1, 2007.
Other Matters
Management does not know of any matters to be presented for action at the
meeting other than those listed in the Notice of Meeting and referred to herein.
If any other matters properly come before the meeting, it is intended that the
Proxy solicited hereby will be voted in accordance with the recommendations of
the Board of Directors.
COPIES OF THE ANNUAL REPORT ON FORM 10-K AND OTHER DISCLOSURE STATEMENTS
FOR BOK FINANCIAL CORPORATION MAY BE OBTAINED WITHOUT CHARGE TO THE SHAREHOLDERS
BY WRITING TO THE CHIEF FINANCIAL OFFICER, BOK FINANCIAL CORPORATION, P. O. BOX
2300, TULSA, OKLAHOMA 74192, OR VIA E-MAIL OR THROUGH THE BOKF WEBSITE LOCATED
AT HTTP://WWW.BOKF.COM.
THE COMPANY MAKES AVAILABLE ITS PERIODIC AND CURRENT REPORTS, FREE OF
CHARGE, ON ITS WEB SITE AS SOON AS REASONABLY PRACTICABLE AFTER SUCH MATERIAL IS
ELECTRONICALLY FILED WITH, OR FURNISHED TO, THE SEC AT HTTP://WWW.BOKF.COM.
Annual Meeting Proxy Card
A Proposals -- The Board of Directors recommends a vote FOR all the nominees
listed and FOR Proposal 2.
1. Election of Directors: 01 - Gregory S. Allen 02 - C. Fred Ball, Jr. 03 - Sharon J. Bell 04 - Peter C. Boylan III
05 - Chester Cadieux III 06 - Joseph W. Craft III 07 - William E. Durrett 08 - Robert G. Greer
09 - David F. Griffin 10 - V. Burns Hargis 11 - E. Carey Joullian IV 12 - George B. Kaiser
13 - Judith Z. Kishner 14 - Thomas L. Kivisto 15 - David L. Kyle 16 - Robert J. LaFortune
17 - Stanley A. Lybarger 18 - Steven J. Malcolm 19 - Paula Marshall
[ ] Mark here to vote FOR all nominees
[ ] Mark here to WITHHOLD vote from all nominees
[ ] For All EXCEPT - To withhold a vote for one or more nominees, mark the box
to the left and the corresponding numbered box(es) to the right.
2. In their discretion the proxies are authorized to vote upon such other
business as may properly come before the meeting.
B Non-Voting Items
Change of Address -- Please print your new address below.
Comments -- Please print your comments below.
C Authorized Signatures -- This section must be completed for your vote to be
counted.-- Date and Sign
Please sign exactly as name(s) appears hereon. Joint owners should each sign.
When signing as attorney, executor, administrator, corporate officer, trustee,
guardian, or custodian, please give full title.
Date (mm/dd/yyyy) -- Please print date below.
Signature 1 -- Please keep signature within the box
Signature 2 -- Please keep signature within the box
Proxy -- BOK FINANCIAL CORPORATION
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned hereby appoints Frederic Dorwart and Tamara R. Wagman as
Proxies, each with the power to appoint his or her substitute, and hereby
authorizes them to represent and to vote, as designated on the reverse side, all
the shares of common stock of BOK Financial Corporation held of record by the
undersigned on March 1, 2007, at the annual meeting of shareholders to be held
on April 24, 2007 or any adjournment thereof.
Your shares will be voted in accordance with your instructions. If no choice is
specified, your shares will be voted FOR the nominees in the election of
directors.
PLEASE MARK, SIGN, DATE AND RETURN THE PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.