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DEF 14A
PENSKE AUTOMOTIVE GROUP, INC. filed this Form DEF 14A on 03/16/2017
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Table of Contents

The specific 2016 performance objectives and related performance were as follows:

•    Objective


Result

% of Award

Achievement

 

 

 

 

 

 

 

 

 

 

EBITDA (earnings before interest, taxes, depreciation and amortization) of $715 million (100% attainment). EBITDA below $640 million results in no attainment, EBITDA of $640 million results in 50% attainment, and EBITDA of $750 million yields 200% attainment.(1)(2)

  $683.2 million   20 % 15.8 %

Compliance with the covenants in our U.S. and U.K. credit facilities

  Compliant     10 %   10 %

Earnings per share of $3.87 to $4.04 (100% attainment). EPS of $3.67 to $3.86 (50% attainment) and EPS over $4.04 (200% attainment)(1)

  $3.93   10 % 10 %

Operating margin of 3.0% to 3.2% (100% attainment), operating margin of 2.9% to 2.99% (50% attainment) and above 3.2% (150% attainment)(1)(3)

  2.86%     10 %   0 %

Common stock price performance exceeds the S&P 500 Index during 2016 (100% attainment) Performance below the S&P 500 results in no attainment and outperformance by 7.5% to 15% yields 125% attainment and outperformance by more than 15% or more yields 150% attainment

  12.9%
outperformance

 
10 % 12.5 %

Customer satisfaction scores exceed manufacturer objectives at 90% of our U.S. franchises

  Exceeds     10 %   10 %

No material weaknesses in our internal controls

  None   10 % 10 %

Reduce selling, general and administrative expense as a percentage of gross profit by more than 100 basis points (100% attainment). Reduction below 10 basis points results in no attainment, reduction of 10 to 50 basis points results in 25% attainment, reduction of 51 to 75 results in 50% attainment and reduction of 76 to 100 results in 75% attainment

  –46bps     10 %   2.5 %

Same-store revenue growth of 5% (100% attainment). Growth below 5% results in no attainment, and growth of 10% yields 200% attainment.(2)

  –1.3%   10 % 0 %

Total

        100 %   70.8 %
(1)
This performance target excludes income or loss from discontinued operations, extraordinary items, changes in accounting principles, or any items of gain or loss relating to strategic or financial restructurings, the divestiture of assets or a business and, in each case, only if excluded from the definition of consolidated net income under the Company's U.S. credit agreement.

(2)
Performance between these amounts yields pro rata attainment.

(3)
Operating margin is the ratio of operating income to total revenue.

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