UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 30, 2013
FIVE BELOW, INC.
(Exact Name of Registrant as Specified in Charter)
Pennsylvania | 001-35600 | 75-3000378 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1818 Market Street
Suite 1900
Philadelphia, PA 19103
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code: (215) 546-7909
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Five Below, Inc. Performance Bonus Plan
On May 30, 2013, the Compensation Committee of the Board of Directors (the Board) of Five Below, Inc. (the Company) approved the performance targets and the potential bonus payouts for the Companys named executive officers for the current fiscal year ending February 1, 2014 (Fiscal 2013) under the Five Below, Inc. Performance Bonus Plan (the Performance Bonus Plan).
For Fiscal 2013, the Compensation Committee determined that the Companys named executive officers will receive no payments under the Performance Bonus Plan, unless the Companys adjusted operating income (determined prior to giving effect to any bonuses potentially payable under the Performance Bonus Plan) meets or exceeds the Companys target goal of $64.0 million. Adjusted operating income is defined as the Companys operating income, adjusted to exclude the impact of: (1) stock-based compensation expense that relates to the cancellation of stock options granted to the Companys founders in fiscal year 2010 to purchase 2,020,620 shares of common stock, in exchange for the grant of an equal number of restricted shares that vest through March 2014 and on-going expense recognition of the awards over the remaining vesting period; (2) fees incurred in connection with any secondary public offering of shares of the Companys common stock; and (3) any other adjustments that may be approved by the Compensation Committee. At its discretion, the Compensation Committee may withhold any or all of an executive officers bonus based on the committees evaluation of such individuals performance.
If the Companys adjusted operating income meets or exceeds $64.0 million, then each named executive officer will receive a target performance bonus equal to 5% of the executives base salary in effect as of the end of Fiscal 2013 (other than Mr. Johnston who will receive 7.5%). If the Companys adjusted operating income meets or exceeds $65.7 million, then each named executive officer will receive a target performance bonus equal to 25% of the executives base salary in effect as of the end of Fiscal 2013 (other than Mr. Johnston who will receive 37.5%). If the Companys adjusted operating income meets or exceeds $68.8 million, then each named executive officer will receive a target performance bonus equal to 35% of the executives base salary in effect as of the end of Fiscal 2013 (other than Mr. Johnston who will receive 52.5%). If the Companys adjusted operating income meets or exceeds $71.4 million, then each named executive officer will receive a maximum performance bonus equal to 50% of the executives base salary (other than Mr. Johnston who will receive 75%). The performance bonus will not be interpolated if the Companys adjusted operating income is between any of the target goals.
Increase in Base Salary of Kenneth Bull
On May 30, 2013, the Compensation Committee approved an increase to the annual base salary of Kenneth R. Bull, the Companys Chief Financial Officer, Secretary and Treasurer, from $325,000 to $338,000, effective as of March 24, 2013.
Employee Stock Purchase Plan
On May 30, 2013, the Companys shareholders, upon recommendation of the Board, approved the Five Below, Inc. 2012 Employee Stock Purchase Plan (the ESPP). The ESPP became effective on January 1, 2013, subject to shareholder approval. The ESPP is described in greater detail in Proposal 2 in the Companys Proxy Statement (the Proxy Statement) for the 2013 Annual Meeting of Shareholders. The Proxy Statement was filed with the Securities and Exchange Commission on April 18, 2013. The description of the ESPP contained herein and in the Proxy Statement are qualified in their entirety by reference to the full text of the ESPP, which was filed with the Securities and Exchange Commission as Exhibit 10.1 to the Companys Quarterly Report on Form 10-Q for the period ended October 27, 2012 and is incorporated herein by reference in its entirety.
Item 5.07 | Submission of Matters to a Vote of Security Holders. |
On May 30, 2013, the Company held its Annual Meeting of Shareholders (the Annual Meeting). A total of 53,983,012 shares of the Companys common stock were entitled to vote as of April 5, 2013, the record date for the Annual Meeting, of which 52,335,552 were present in person or by proxy at the Annual Meeting. The following is a summary of the final voting results for each matter presented to shareholders.
PROPOSAL 1: Election of Two Class I Directors to hold office until the 2016 Annual Meeting of Shareholders.
Nominee |
For | Withheld | Broker Non-Votes | |||||||||
Michael F. Devine, III |
49,775,834 | 167,102 | 2,392,616 | |||||||||
Ronald L. Sargent |
49,626,896 | 316,040 | 2,392,616 |
PROPOSAL 2: Approval of the Five Below, Inc. 2012 Employee Stock Purchase Plan.
For |
Against |
Abstentions |
Broker Non-Votes | |||
49,907,704 |
26,375 | 8,857 | 2,392,616 |
PROPOSAL 3: Ratification of the appointment of KPMG LLP as the Companys independent registered public accounting firm for the current fiscal year ending February 1, 2014.
For |
Against |
Abstentions |
Broker Non-Votes | |||
52,279,962 |
30,496 | 25,094 | |
PROPOSAL 4: Approval on an advisory (non-binding) basis, of the Companys named executive officer compensation.
For |
Against |
Abstentions |
Broker Non-Votes | |||
45,940,491 |
3,930,257 | 72,188 | 2,392,616 |
PROPOSAL 5: Approval on an advisory (non-binding) basis, of the frequency of future advisory votes to approve executive compensation.
1 Year |
2 Years |
3 Years |
Abstentions |
Broker Non-Votes | ||||
20,997,385 |
38,915 | 28,884,122 | 22,513 | 2,392,617 |
In accordance with the shareholder vote on proposal 5, the Company has decided to hold an advisory vote on executive compensation every three years until the next required vote on the frequency of such votes.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Five Below, Inc. | ||||||
Date: June 5, 2013 | By: | /s/ Kenneth R. Bull | ||||
Name: | Kenneth R. Bull | |||||
Title: | Chief Financial Officer, Secretary and Treasurer |