Document:

ex10_19.htm

Exhibit 10.19

 

Jones Lang LaSalle Incorporated

Non-Executive Director Compensation Plan

Summary of Terms and Conditions

Amended and Restated as of January 1, 2012

	
I. 

	
Introduction:

The Non-Executive Director Compensation Plan (as amended and restated, the “Plan”) of Jones Lang LaSalle Incorporated (the “Company”) is designed to attract and retain highly qualified individuals to serve as non-executive members of the Company’s Board of Directors and to align the interests of the non-executive directors (the “Directors”) with those of the Company’s shareholders.  Members of the Board of Directors who are also employees and/or officers of the Company do not qualify for compensation under the Plan.  The terms of the Plan as set forth below are effective for service on the Board of Directors on and after January 1, 2012.

	
II.

	
Compensation:

The Plan provides each of the Company’s Directors the following compensation for service on the Company’s Board of Directors:

 

	 	
A.

	
Cash 

 

Each Director shall receive the following compensation in cash, subject to certain elections that each Director may otherwise make as described below.

	
  

	
a.

	
Annual Retainer - $70,000 in cash, payable in equal quarterly installments in advance, promptly after the beginning of each calendar quarter.

	
  

	
b.

	
Audit Committee Chair Additional Retainer – The Chair of the Audit Committee shall be paid an annual retainer of $25,000, to be paid in full and in advance following the appointment of the Chair after each Annual Meeting of Shareholders, such payment to be made promptly after the end of the second calendar quarter each year.

	
  

	
c.

	
Compensation Committee Chair Additional Retainer – The Chair of the Compensation Committee shall be paid an annual retainer of $25,000, to be paid in full and in advance following the appointment of the Chair after each Annual Meeting of Shareholders, such payment to be made promptly after the end of the second calendar quarter each year.

	
  

	
d.

	
Nominating and Governance Committee Chair Additional Retainer – The Chair of the Nominating and Governance Committee shall be paid an annual retainer of $10,000, to be paid in full and in advance following the appointment of the Chair after each Annual Meeting of Shareholders, such payment to be made promptly after the end of the second calendar quarter each year.

 

  

  

  

 

	
  

	
e.

	
Committee Member Additional Retainer – Each member of the Audit and Compensation Committees (other than the Chairman of each respective Committee) shall be paid an annual retainer of $5,000.  Each member of the Nominating and Governance Committee (other than the Chairman) shall be paid an annual retainer of $2,500.  Each retainer shall be paid in full and in advance following the appointment of each member after every Annual Meeting of Shareholders, such payment to be made promptly after the end of the second calendar quarter each year.

	
  

	
B.

	
Annual Grants of Restricted Stock

At the time of each Annual Meeting of Shareholders, each Director shall receive an annual grant of restricted shares of Common Stock in the aggregate amount of $120,000. The number of restricted shares shall be calculated based on the closing price of the Company’s Common Stock on the date of the grant.  One half of the shares shall vest on the 18 month anniversary of the date of the grant and the remaining half shall vest on the third anniversary of the date of the grant.

 

	 	
C.

	
Common Stock Alternative with Respect to Annual Retainer

       

	 	
i.

	

Percentage Election - Directors may elect to receive any or all of their Annual Retainer(s) in shares of the Company’s Common Stock (rather than in cash) in increments of 5% (i.e., 5%, 10%, 15%, etc.)

 

	
  

	
ii.

	
Receipt/Deferral - Directors may elect to take receipt of their shares of Company’s Common Stock according to either paragraphs 1 or 2 below:

	
  

	
1.

	
During the year in which the Annual Retainer(s) are earned.  In the case of the Annual Retainer(s), the number of shares shall be determined quarterly and shall be equal to the percentage of the Annual Retainer elected, divided by four, divided by the price per share of Company Stock on the last day of each quarter.  For administrative purposes, shares may not actually be distributed until after the end of the year in which the Annual Retainer was earned.

Or

	
  

	
2.

	
On a deferred basis:

	
  

	
a.

	
When they retire from the Board of Directors;

	
  

	
b.

	
A specified number of years (not to exceed 10) after the date on which they retire from the Board of Directors; or

	
  

	
c.

	
For a specified number of years (not less than 1 or more than 10) after the election is made.

  

2

  

 

Notwithstanding the foregoing, in no event shall the distribution of shares be accelerated at a time earlier than which they otherwise would have been distributed, whether by amendment of the Plan, exercise of the Company’s discretion or otherwise, except in the event of a Director’s death or long-term disability.

	
  

	
iii.

	
Deferral Election - Any election to defer shares shall be made prior to the year in which the Annual Retainer subject to deferral shall be earned.  Any newly elected Director shall have five (5) days from the date of his or her election to the Board to elect to defer any percentage hereunder.  The initial deferral election shall clearly specify the time of payment.  All deferral elections shall be irrevocable.

	
  

	
iv.

	
Dividends/Stock Splits - Dividends, if any, on deferred shares of Common Stock shall be paid in additional shares having a fair market value equal to the amount of the dividends paid on the date of payment.  However, any fractional shares shall be paid in cash.  Deferred Stock shall be subject to any stock splits, reverse stock splits, or stock dividends.

 

	
  

	
v.

	
Code Section 409A – The Plan is subject to the provisions of Section 409A of the Internal Revenue Code enacted under the American Jobs Creation Act of 2004, and any regulations issued thereunder.  The Plan shall be interpreted and administered consistent with this intent and shall apply to all amounts deferred on or after January 1, 2005.  The Company reserves the right to amend or modify this Section D in order to comply with regulations promulgated by the Department of Treasury under Code Section 409A.

 

	 	
D.

	
Deferral Opportunities Under U.S. Deferred Compensation Plan

          

Those Directors who are subject to the payment of United States federal income taxes are eligible to participate in the Company’s U.S. Deferred Compensation Plan with respect to any or all of the cash amounts payable under this Plan.  Participation in the Deferred Compensation Plan is subject to the separate documentation, agreements and elections that will be provided to any Director upon request.

 

	 	

E.

	

General

 

	
  

	
a.

	
Administration - This plan will be administered by the Nominating and Governance Committee of the Board of Directors.

	
  

	
b.

	
Non-Committee Member Attendance.  While Board members are encouraged to attend the meeting of a Committee of which they are not a voting member, they shall not be eligible for any additional compensation for their attendance.

 

	 	

c.

	

Source of Stock – All shares of the Company’s Common Stock granted under this Plan shall be issued out of the Company’s Amended and Restated Stock Award and Incentive Plan, as in effect from time to time (the “SAIP”) and shall otherwise be subject to the terms of the SAIP and any applicable award agreement that shall be presented to the Director by the Company.

 

	 	

d.

	

Amendment - The Plan may only be amended by the Nominating and Governance Committee of the Board of Directors.

 

	 	

e.

	

Itemized Statements – The Company shall provide periodic itemized statements accounting for the payments that have been made to the respective Directors under the Plan.

 

 

3ex10_22.htm

Exhibit 10.22

 

	 	
JONES LANG LASALLE

STOCK OWNERSHIP PROGRAM

(Amended and Restated Effective March 31, 2011)

	

 

Jones Lang LaSalle Incorporated (the “Company”) sponsors a series of compensation and benefit programs to assist Directors meet their personal financial goals.  In an effort to help increase awareness and understanding of its Stock Ownership Program (“SOP”), the Company has created this summary.

PROGRAM OBJECTIVES

 

The SOP establishes desirable ownership guidelines for the Company’s executive officers as well as International and Regional Directors in order to:

	 	
·  

	
Align a portion of the compensation of those employees who are most responsible for the results of the Company with the interests of shareholders.

	 	
·  

	
Reward people who make long-term contributions to the Company and encourage retention through long-term wealth building incentives.

	 	
·  

	
Reinforce the “one firm” mindset by encouraging employee ownership across business units and regions.

 

The following desirable minimum stock ownership guidelines have been established:

 

     Table 1:  Stock Ownership Guidelines

	
Director Level

	
Beneficial Ownership Guideline (*)

	
Chief Executive Officer

	
Six times annual base salary

or 60,000 shares

	
Members of Global Executive Committee

	
Four times annual base salary

or 40,000 shares

	
International Director

	
Four times annual base salary

or 10,000 shares

	
Regional Director

	
Two times annual base salary

or 5,000 shares

	 	
(*)

	
In each case, the lesser of the base salary multiple or share requirement.

The Company evaluates Directors’ positions relative to these guidelines each year, using the current annualized base salary, the fair market value of Company stock and the Director’s beneficial ownership of Company stock.

Directors may satisfy their ownership guideline through shares owned directly, shares owned by a spouse or a trust, the potential gain from outstanding stock options, and unvested or deferred restricted stock units.  Although there is no specific period of time in which covered employees should achieve the ownership guidelines, Directors are expected to make continuous progress toward the target and to ideally maintain the applicable level once it has been achieved.

PARTICIPATION REQUIREMENTS

 

To help Directors reach these ownership objectives, International and Regional Directors are separately paid a portion of their incentive compensation (“Total Award”) as a discretionary Stock Bonus (rather than as a discretionary Cash Bonus, or other variable incentive), awarded in the form of restricted stock units (“SOP Shares”) under the Company’s Stock Award and Incentive Plan (the “Plan”).  In addition, effective for the 2011 performance period (for Total Awards payable in 2012) the Company increases the value of SOP Shares by 20% when awarded (generally referred to as the “SOP Uplift”).  Members of the Global Executive Committee are noteligible for the Company-paid SOP Uplift.  The number of SOP Shares to be awarded as a Stock Bonus is based upon the following criteria and the schedule provided in Table 2 below.

 

Awards payable in 2012) the Company increases the value of SOP Shares by 20% when awarded (generally referred to as the “SOP Uplift”).  Members of the Global Executive Committee are not

 

	Jones Lang LaSalle Incorporated Stock Ownership Program	March, 2011

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(a)           The employee’s Director level status as of January 1 for the year to which the Total Award relates (or date of hire if hired during the year).  Employees who may be promoted to Regional Director during the year do not participate in the SOP for the remaining portion of the year they were promoted.  Similarly, Regional Directors promoted to International Director continue to participate at the Regional Director level for the remaining portion of the year they were promoted and begin new participation at the International Director level for the following year.

 

(b)           The closing price per share of Company common stock as of the first trading day in January of the year following the year in which the Total Award relates.  For example, the number of SOP Shares awarded in January, 2011 as part of the 2010 Stock Bonus was determined based on the closing price of the Company’s common stock as of January 3, 2011, or $86.25. With the 20% “SOP Uplift” described above, the $86.25 closing price resulted in a discounted share price of approximately $70 when calculating the number of SOP Shares employees’ received in lieu of a discretionary Cash Bonus.

 

(c)           The currency exchange rate in effect as of the last trading day in December of the year to which the Total Award relates, as determined by the Company.

 

   Table 2: Cash Bonus and Stock Bonus Levels

	
 

Director Level

	
Percentage of Total Award 

Paid as Cash Bonus

	
Percentage of Total Award 

Separately Paid as SOP Shares

	
International Director

	
80%

	
20%

	
Regional Director

	
85%

	
15%

 

For example, if a Regional Director received a Total Award of USD$60,000 (approximately €41,850), the Director would receive a Cash Bonus of USD$51,000 (85% of $60,000) and a Stock Bonus of USD$9,000 (15% of $60,000).  The number of SOP Shares to be awarded, assuming a closing price of $86.25 per share and an exchange rate of €1.00 to $1.40, is shown below in each of the two examples:

 

Example 1:  Total Award paid in U.S. dollars:

SOP Shares = Stock Bonus ($9,000) plus 20% Company SOP Uplift ($1,800)

                      = $10,800 divided by $86.25 (closing price)

      = 125 shares

 

Example 2:  Total Award paid in Euros:

SOP Shares = Stock Bonus (€ 6,390) plus 20% Company SOP Uplift (€1,278)

      = € 7,668 times $1.40 (exchange rate) divided by $86.25 (closing price)

      = 125 shares

Minimum Participation Levels

 

Participation in the SOP requires that the minimum value of Stock Bonus to be paid as SOP Shares be no less than USD$2,000 (before SOP Uplift is applied).  For example, typically a Regional Director would need to be eligible to receive a Total Award greater than USD$13,300 to qualify for SOP Shares. For those that do not have Total Awards that meet the minimum Stock Bonus threshold, no SOP Shares are awarded and the employee receives his/her Total Award paid in cash, with no 20% premium.

 

	Jones Lang LaSalle Incorporated Stock Ownership Program	March, 2011

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Maximum Participation Levels

 

The maximum amount of Stock Bonus to be paid as SOP Shares will be USD$150,000 (before SOP Uplift is applied).  For example, an International Director receiving a Total Award greater than USD$750,000 would have no more than USD$150,000 paid as a Stock Bonus.  Any Total Award not paid as SOP Shares under this provision would be paid as a Cash Bonus.

 

Voluntary Election to Not Participate

 

For treatment of 2011 Total Awards, International Directors may (but are not required to) opt out of receiving SOP Shares if they hold shares in the Company whose value exceeds the minimum stock ownership guidelines described in the first page of this booklet. This notification must be communicated in writing to Global Human Resources and have supporting documentation showing that the minimum required level of individual stock ownership has been achieved.

For 2011 Total Awards, Regional Directors may voluntarily elect to opt out of receiving SOP Shares by informing the Company of their election within the timelines established for such voluntary elections.  For 2011, no minimum share ownership level is required to make this election.

If such an election is made, these individuals receive their Total Award in cash at the same time all other annual bonuses are paid, with no 20% premium.  The election will be specific to treatment of 2011 Total Award and will not automatically roll forward to determine treatment of any future Total Award. This election is not available in certain countries where the availability of the election would result in immediate taxation of SOP Shares.

 

Voluntary Election to Reduce SOP Shares

 

In order to balance the amount of stock and cash an employee may receive for their Total Award, Directors can voluntarily reduce, by five (5) percentage points, the amount of the Total Award he or she would receive as SOP Shares. If this election results in a Stock Bonus of less than USD$2,000 (before the uplift is applied), the Total Award is paid in cash. If no notice to reduce SOP is received within the required deadlines, the amount of SOP Shares to be awarded defaults to the standard SOP schedule shown in Table 2 above. The election will be specific to treatment of 2011 Total Award and will not automatically roll forward to determine SOP treatment of any future Total Award.

VESTING OF SOP SHARES

 

Any SOP Shares that a Director receives will be awarded as of the immediately preceding January 1st and will vest according to the following schedule, subject to the Director continuing to be employed by the Company as of each Vesting Date, and the terms of the specific agreement which memorializes the terms of the award:

	 	
·  

	
50% of SOP Shares vest on the 1st July that is 18 months after the award date; and

	 	
·  

	
50% of SOP Shares vest on the 1st July that is 30 months after the award date.

For example, SOP Shares were awarded on January 1, 2011 as part of the Total Award for 2010 that were communicated in the first quarter of 2011.  Half of these SOP Shares will vest on July 1, 2012 and the other half will vest on July 1, 2013.

DIVIDEND EQUIVALENTS; NO VOTING RIGHTS

 

Since a cash dividend was first announced in August 2005, employees who were awarded SOP Shares received an additional benefit in the form of a semi-annual dividend equivalent payment. The Board of Directors may, in its discretion from time to time, continue to award dividend equivalents to employees who were awarded SOP Shares.  Dividend equivalents are the rights to receive cash, common stock, or other property equal in value to the amount of dividends paid with respect to the Company’s common stock.  SOP Shares do not otherwise have a legal right to receive dividends until vested.  SOP Shares do not have voting rights until they have vested.

 

	Jones Lang LaSalle Incorporated Stock Ownership Program	March, 2011

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FORFEITURE

 

All SOP Shares are subject to the terms and conditions outlined in a award agreement and to the terms and conditions contained in the Plan.  By receiving and accepting a discretionary award of SOP Shares, all Directors accept all terms and conditions.  For example, these conditions apply for terminated employees:

 

- Voluntary Resignation or Termination for Cause – results in the immediate forfeiture of SOP Shares that are not yet vested.

 

- Termination by Reason of Retirement – outstanding awards will continue to vest according to their standard vesting schedule and shares of stock shall be issued in accordance with the standard vesting schedule.  For purposes of SOP Shares, Retirement means age 65 or where any combination of age and years of service equals 65, as long as the employee is at least 55 years old.  If a specific local legal requirement requires this employee stock program to comply with a different definition, the local laws would prevail.  In either case, the retired employee will be required to sign a non-solicitation and non-compete agreement at the time of retirement;

 

- Termination by Reason of Death, Total and Permanent Disability, – the award will continue to vest according to the standard vesting schedule;

 

- SOP Shares will not be forfeited, and will continue to vest on their original schedules in the event an employee is involuntarily terminated due to position elimination.

 

TAX CONSIDERATIONS

 

All Cash Bonuses are subject to normal taxes and social charges, as required by local tax laws.  The tax consequences associated with the award and payment of a Stock Bonus as SOP Shares, as well as any anticipated dividend equivalent payments and eventual sale of stock, are always subject to individual income tax circumstances at the time of award, vesting and sale.  In general, the Company anticipates that there will be no income tax obligations for an employee at the time SOP Shares are awarded.   Subject to the tax laws in the countries that apply to different employees, the vesting of SOP Shares will create a tax reporting event based on the number of shares vesting and the closing price of the stock the day before the vesting date.   Individuals should seek advice of their personal tax advisor to obtain specific information concerning the tax consequences associated with participation in SOP.

RIGHTS AS A STOCKHOLDER

 

The holder of an award will have no rights as a shareholder with respect to any shares covered by the award except as expressly contained or provided for in the award agreement or the Plan until the vesting of the award.

 

	

Disclaimer

This summary of our Stock Ownership Program is subject to the terms and conditions of the Plan and each underlying award agreement issued thereunder.  In the event of a conflict, the terms of the Plan or the underlying award agreement shall prevail.  Any terms not otherwise defined in this summary shall have the meaning provided for in the Plan or the award agreement issued thereunder.

 

	Jones Lang LaSalle Incorporated Stock Ownership Program	
March, 2011

Page 4 of 4

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