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Name and Address of Beneficial Owner(1)
|
| |
Number of
Shares Beneficially Owned |
| |
Percentage of
Shares Beneficially Owned(2) |
| ||||||
Christopher T. Cox(3)
|
| | | | 753,695 | | | | | | 6.11% | | |
Richard de J. Osborne(4)
|
| | | | 379,003 | | | | | | 3.07% | | |
David C. Mahoney
|
| | | | 327,904 | | | | | | 2.66% | | |
Michael A. Morrison(5)
|
| | | | 311,022 | | | | | | 2.48% | | |
Thomas H. Kelly
|
| | | | 37,835 | | | | | | * | | |
James Eliason
|
| | | | 12,095 | | | | | | * | | |
Don Friedman
|
| | | | 11,666 | | | | | | * | | |
Sanjay Mistry(6)
|
| | | | 10,924 | | | | | | * | | |
Joan C. McArdle
|
| | | | 9,667 | | | | | | * | | |
Randy Seidl
|
| | | | 9,499 | | | | | | * | | |
Ken Tacelli
|
| | | | 3,333 | | | | | | * | | |
Colin Mahony(7)
|
| | | | — | | | | | | * | | |
All current directors and executive officers as a group
(eleven persons)(8) |
| | | | 1,855,219 | | | | | | 9.44% | | |
WC Capital, LLC(9)
c/o Christopher Cox 116 East Saddle River Road Saddle River, New Jersey 07458 |
| | | | 689,966 | | | | | | 5.59% | | |
G2 Investment Partners Management LLC(10)
One Rockefeller Plaza, 23rd Floor New York, NY 10020 |
| | | | 1,034,987 | | | | | | 8.39% | | |
Director Compensation
|
| ||||||||||||||||||
Name
|
| |
Fees Earned
or Paid in Cash ($)(1) |
| |
Stock Awards
($)(2) |
| |
Total ($)
|
| |||||||||
Don Friedman
|
| | | $ | 22,500 | | | | | $ | 50,050 | | | | | $ | 72,550 | | |
Charles M. Gillman(3)
|
| | | $ | 7,500 | | | | | $ | 0 | | | | | $ | 7,500 | | |
Thomas H. Kelly
|
| | | $ | 22,500 | | | | | $ | 50,050 | | | | | $ | 72,550 | | |
David C. Mahoney
|
| | | $ | 70,500 | | | | | $ | 50,050 | | | | | $ | 125,550 | | |
Richard de J. Osborne
|
| | | $ | 22,500 | | | | | $ | 50,050 | | | | | $ | 72,550 | | |
Colin Mahony(4)
|
| | | $ | 7,500 | | | | | $ | 65,100 | | | | | $ | 72,600 | | |
Christopher T. Cox
|
| | | $ | 22,500 | | | | | $ | 50,050 | | | | | $ | 72,550 | | |
Joan C. McArdle
|
| | | $ | 22,500 | | | | | $ | 50,050 | | | | | $ | 72,550 | | |
Randy Seidl
|
| | | $ | 22,500 | | | | | $ | 50,050 | | | | | $ | 72,550 | | |
| Cash Compensation | | |
•
Implemented a cash incentive compensation program tied exclusively to corporate financial performance measures for non-sales executive officers
|
|
| Equity Compensation | | |
•
Granted equity awards to our executive officers to provide alignment with the interests of our stockholders
|
|
| Process and Governance | | |
•
Engaged Pearl Meyer as the Compensation and Stock Committee’s independent advisor
|
|
What We Do
|
| |
What We Don’t Do
|
|
✓
Consult an independent compensation consultant
✓
Conduct market-based pay reviews
✓
Executive incentive bonuses tied to exclusively to financial corporate performance (excluding officers in a sales role)
✓
Grant performance-based equity to executive officers
|
| |
✗
No guaranteed salary increases or bonuses
✗
No executive perquisites
✗
No pension plans or other post-employment benefit plans
✗
No hedging or pledging of Company stock
✗
No history of option repricing or backdating
|
|
| Equity Compensation | | |
•
Granted equity awards to our executive officers to provide alignment with the interests of our stockholders
•
Conditioned the vesting of a portion of these equity awards to our executive officers on achievement of certain financial performance goals of the Company in fiscal 2018
•
Granted equity awards to our executive officers that will vest only 50% upon a change in control of Datawatch and 100% if such executive officer is terminated for cause or leaves for good reason within 12 months after a change in control of Datawatch
|
|
| Process and Governance | | |
•
Updated the peer group of comparator companies to better reflect Datawatch’s size and stage
•
Engaged Pearl Meyer as the Compensation and Stock Committee’s independent advisor
|
|
| Actua Corporation | | | Evolving Systems, Inc. | |
| Alteryx, Inc. | | | Exa Corporation | |
| Amber Road, Inc. | | | Guidance Software, Inc. | |
| ARI Network Services, Inc. | | | Park City Group, Inc. | |
| Asure Software, Inc. | | | Reis, Inc. | |
| ChannelAdvisor Corporation | | | SeaChange International, Inc. | |
| Determine, Inc. | | | SITO Mobile, Ltd. | |
| Digimarc Corporation | | | Upland Software, Inc. | |
| Everbridge, Inc. | | | Zix Corporation | |
Element
|
| |
Objective
|
| |
Fixed/Variable
|
|
Base Salary | | | Attract and retain highly qualified leaders with market-competitive compensation structure. | | |
Fixed
|
|
Cash Incentive Compensation – Corporate Officers Compensation Plan |
| | Link pay with Company’s financial performance. Reward achievement of Company’s financial goals. | | |
Variable
|
|
Equity Awards | | | Link pay with Company’s long-term performance. Reward stock price appreciation, promote long-term retention and permit executives to accumulate equity ownership in the Company. | | |
Variable
|
|
Executive (Title)
|
| |
Annual
Base Salary ($) |
| |
Aggregate
Target Cash Bonus ($) |
| |
Each
Quarterly Bonus Eligibility at 80% Quarterly Revenue ($) |
| |
Quarterly
Bonus Eligibility at 100% Quarterly Revenue ($) |
| |
Additional
Bonus Eligibility at 125% Annual Revenue ($) |
| |
Actual Cash
Bonus Received ($) |
| |
RSUs
Granted (#)(2) |
| |
RSUs
Forfeited (#) |
| ||||||||||||||||||||||||
Michael A. Morrison (CEO)
|
| | | | 375,000 | | | | | | 200,000 | | | | | | 30,000 | | | | | | 50,000 | | | | | | 100,000 | | | | | | 249,083(1) | | | | | | 110,000 | | | | | | — | | |
James Eliason (CFO)
|
| | | | 312,000 | | | | | | 110,000 | | | | | | 16,500 | | | | | | 27,500 | | | | | | 55,000 | | | | | | 136,996(1) | | | | | | 67,000 | | | | | | — | | |
Ken Tacelli (COO)
|
| | | | 300,000 | | | | | | 220,000 | | | | | | 3,000 | | | | | | 5,000 | | | | | | 10,000 | | | | | | 22,034(1) | | | | | | 70,000 | | | | | | — | | |
Sanjay Mistry (Controller)(3)
|
| | | | 218,400 | | | | | | 50,000 | | | | | | 7,500 | | | | | | 12,500 | | | | | | 25,000 | | | | | | — | | | | | | 5,000 | | | | | | — | | |
Name/Title
|
| |
Base
Salary ($) |
| |
Aggregate
Target Cash Bonuses ($) |
| |
Quarterly
Bonus Eligibility at 90% Plan Revenue ($) |
| |
Quarterly
Bonus Eligibility at 100% Plan Revenue ($) |
| |
Additional
Bonus Eligibility at 105% Annual Revenue ($) |
| |
Additional
Bonus Eligibility at 125% Annual Revenue ($) |
| ||||||||||||||||||
Michael A. Morrison (CEO)
|
| | | | 380,000 | | | | | | 275,000 | | | | | | 55,000 | | | | | | 68,750 | | | | | | 33,000 | | | | | | 247,500 | | |
James Eliason (CFO)
|
| | | | 315,000 | | | | | | 140,000 | | | | | | 28,000 | | | | | | 35,000 | | | | | | 16,800 | | | | | | 126,000 | | |
Ken Tacelli (COO)
|
| | | | 350,000 | | | | | | 250,000 | | | | | | n/a | | | | | | n/a | | | | | | n/a | | | | | | n/a | | |
Executive
|
| |
RSUs (#)
|
| |||
Michael Morrison (CEO)
|
| | | | 70,000 | | |
James Eliason (CFO)
|
| | | | 35,000 | | |
Ken Tacelli (COO)
|
| | | | 40,000 | | |
Executive
|
| |
RSUs (#)
|
| |||
Michael Morrison (CEO)
|
| | | | 20,000 | | |
James Eliason (CFO)
|
| | | | 5,000 | | |
Ken Tacelli (COO)
|
| | | | 15,000 | | |
Name and Principal Position(1)
|
| |
Fiscal
Year |
| |
Salary
|
| |
Bonus
|
| |
Stock
Awards(2) |
| |
Option
Awards |
| |
Non-Equity
Incentive Plan Compensation |
| |
All Other
Compensation |
| |
Total
|
| ||||||||||||||||||||||||
Michael A. Morrison
President and CEO |
| | | | 2017 | | | | | $ | 375,000 | | | | | $ | 249,083 | | | | | $ | 786,500 | | | | | | — | | | | | | — | | | | | $ | 917(3) | | | | | $ | 1,411,500 | | |
| | | 2016 | | | | | $ | 375,000 | | | | | $ | 62,465 | | | | | $ | 448,500 | | | | | | — | | | | | | — | | | | | $ | 917(3) | | | | | $ | 886,882 | | | ||
| | | 2015 | | | | | $ | 350,000 | | | | | | — | | | | | $ | 183,200 | | | | | | — | | | | | | — | | | | | $ | 877(3) | | | | | $ | 534,077 | | | ||
James Eliason
CFO |
| | | | 2017 | | | | | $ | 312,000 | | | | | $ | 136,996 | | | | | $ | 482,200 | | | | | | — | | | | | | — | | | | | $ | 917(3) | | | | | $ | 932,113 | | |
| | | 2016 | | | | | $ | 300,000 | | | | | $ | 34,356 | | | | | $ | 358,800 | | | | | | — | | | | | | — | | | | | $ | 917(3) | | | | | $ | 694,073 | | | ||
| | | 2015 | | | | | $ | 290,000 | | | | | | — | | | | | $ | 91,600 | | | | | | — | | | | | | | | | | | $ | 877(3) | | | | | $ | 382,477 | | | ||
Ken Tacelli(4)
Chief Operating Officer |
| | | | 2017 | | | | | $ | 316,667 | | | | | $ | 441,710 | | | | | $ | 484,000 | | | | | | — | | | | | | — | | | | | $ | 917(3) | | | | | $ | 1,243,294 | | |
| | | 2016 | | | | | $ | 115,833 | | | | | $ | 102,674 | | | | | $ | 420,000 | | | | | | — | | | | | | — | | | | | $ | 304 | | | | | $ | 638,812 | | | ||
| | | 2015 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | ||
Sanjay Mistry(5)
Vice President, Controller |
| | | | 2017 | | | | | $ | 144,900 | | | | | $ | 33,334 | | | | | $ | 38,000 | | | | | | — | | | | | | — | | | | | $ | 73,331(6) | | | | | $ | 289,565 | | |
| | | 2016 | | | | | $ | 210,000 | | | | | $ | 31,232 | | | | | $ | 59,800 | | | | | | — | | | | | | — | | | | | $ | 773(3) | | | | | $ | 301,805 | | | ||
| | | 2015 | | | | | $ | 200,000 | | | | | $ | 23,200 | | | | | $ | 58,400 | | | | | | — | | | | | | — | | | | | $ | 704(3) | | | | | $ | 282,304 | | |
Name
|
| |
Grant Date
|
| |
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards(1) |
| |
Estimated
Future Payouts Under Equity Incentive Plan Awards |
| |
Grant Date
Fair Value of Stock and Option Awards(2) |
| ||||||||||||||||||||||||
| | | | | | | | |
Threshold ($)
|
| |
Target ($)
|
| |
Maximum ($)
|
| |
Target (#)
|
| | | | | | | ||||||||||||
James Eliason
|
| | | | 11/1/2016 | | | | | | | | |||||||||||||||||||||||||
| | | 4/18/2017 | | | | | | — | | | | | | 110,000 | | | | | | 165,000 | | | | | | 67,000(3) | | | | | $ | 482,200(3) | | | ||
Sanjay Mistry(4) | | | | | 11/1/2016 | | | | | | — | | | | | | 50,000 | | | | | | 75,000 | | | | | | 5,000(5) | | | | | $ | 38,000(5) | | |
Ken Tacelli
|
| | | | 12/16/2016 | | | | | | | | |||||||||||||||||||||||||
| | | 4/18/2017 | | | | | | — | | | | | | 220,000(6) | | | | | | 230,000 | | | | | | 70,000(7) | | | | | $ | 484,000(7) | | | ||
Michael A. Morrison | | | | | 4/18/2017 | | | | | | — | | | | | | 200,000 | | | | | | 300,000 | | | | | | 110,000(8) | | | | | $ | 786,500(8) | | |
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||
Name
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable(1) |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable(1) |
| |
Option Price
($) |
| |
Option
Expiration Date |
| |
Number of
Shares or Units of Stock that have Not Vested(2) (#) |
| |
Market Value
of Shares or Units of Stock that have Not Vested(2)(3) ($) |
| ||||||||||||||||||
Michael A. Morrison
|
| | | | 100,000 | | | | | | — | | | | | $ | 3.46 | | | | | | 2/11/2018 | | | | | | 135,000(4) | | | | | $ | 1,559,250 | | |
| | | 75,000 | | | | | | — | | | | | $ | 12.92 | | | | | | 4/23/2020 | | | | | | — | | | | | | — | | | ||
James Eliason | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 84,667(5) | | | | | $ | 977,904 | | |
Ken Tacelli | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 116,667(6) | | | | | $ | 1,809,504 | | |
Sanjay Mistry(7) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Stock Awards
|
| |||||||||
Name
|
| |
Number of
Shares Acquired on Vesting (#) |
| |
Value Realized
on Vesting(1) ($) |
| ||||||
Michael A. Morrison
|
| | | | 48,334 | | | | | $ | 339,256 | | |
James Eliason
|
| | | | 26,666 | | | | | $ | 200,994 | | |
Ken Tacelli
|
| | | | 25,000 | | | | | $ | 225,000 | | |
Sanjay Mistry(2)
|
| | | | 6,667 | | | | | $ | 48,336 | | |
Name
|
| |
Salary
Continuation ($) |
| |
Benefits
Continuation ($) |
| |
Equity
Awards ($)(2) |
| |||||||||
Michael A. Morrison(1) | | | | | |||||||||||||||
Termination without Cause or Resignation for Good Reason
|
| | | $ | 375,000 | | | | | | — | | | | | | — | | |
Termination without Cause or Resignation for Good Reason after Change in Control
|
| | | $ | 375,000 | | | | | | — | | | | | $ | 2,657,000 | | |
James Eliason(1) | | | | | |||||||||||||||
Termination without Cause or Resignation for Good Reason
|
| | | $ | 156,000 | | | | | $ | 19,473 | | | | | | — | | |
Termination without Cause or Resignation for Good Reason after Change in Control
|
| | | $ | 156,000 | | | | | $ | 19,473 | | | | | $ | 1,235,850 | | |
Ken Tacelli(1) | | | | | |||||||||||||||
Termination without Cause or Resignation for Good Reason
|
| | | $ | 160,000 | | | | | $ | 10,922 | | | | | | — | | |
Termination without Cause or Resignation for Good Reason after Change in Control
|
| | | $ | 160,000 | | | | | $ | 10,922 | | | | | $ | 1,386,000 | | |