Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement pursuant to Section 14(a) of the Securities Exchange Act of 1934
(Amendment No. __)
Filed by the Registrant x

Filed by a Party other than the Registrant o

Check the appropriate box:
o
Preliminary Proxy Statement
o
Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
x
Definitive Proxy Statement
o
Definitive Additional Materials
o
Soliciting Material Pursuant to § 240.14a-12

UNIVERSAL CORPORATION
(Name of Registrant as Specified in its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):
x
No fee required.
 
 
o
Fee computed on table below per Exchange Act Rules 14a-6(i)(l) and 0-11.
 
(1)
Title of each class of securities to which transaction applies:
 
(2)
Aggregate number of securities to which transaction applies:
 
(3)
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
 
(4)
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Total fee paid:
 
 
 
o
Fee paid previously with preliminary materials.
 
 
o
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
 
(1)
Amount Previously Paid:
 
(2)
Form, Schedule or Registration Statement No.:
 
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Date Filed:





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ANNUAL MEETING OF SHAREHOLDERS
July 24, 2019

Dear Universal Shareholders,
In 2018, Universal celebrated its 100th anniversary. With the average life-span of large, successful companies at historic lows, this is remarkable longevity. It is even more remarkable that our tenure has included steady growth, a strong balance sheet, and a 49-year track-record of increasing dividends.
It is tempting to look backward and be satisfied with all our accomplishments, but it is what lies ahead that excites us. I invite you to look forward with me through a new lens.
We are excited about our future for all the reasons we have survived and thrived for a century. We are a company that has mastered the complex logistical, financial, managerial, relational, and political skills needed to move agricultural products from fields around the world to the market. These are skills and relationships that are not easily developed, so our market position is strong.
We have historically applied our expertise to the tobacco sector, supporting more than 20,000 permanent and seasonal jobs and hundreds of thousands of farmers in over 30 countries on five continents. We are, in many of our locations, a critical source of employment and community stability. We now look to extend our business more widely by applying our strengths and core competencies to other agriproduct sectors. At more than 100 years of age, we are still innovators.
We have historically relied on a governance structure that protects our conservative financial management and strategy. We balance it, however, with a small, diverse, steadily-refreshed and widely-skilled Board of Directors.
My colleagues and I ask for your voting support on the matters presented in this proxy statement. We also invite you to attend our annual meeting and provide us feedback throughout the year in any of the ways we describe in this proxy statement. Our ability to innovate rests in part on our willingness to seek out new ideas from all sources. Thank you for your investment in Universal and the trust you have placed in us.
 
Sincerely,
 
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GEORGE C. FREEMAN, III
 
Chairman, President, and
 
Chief Executive Officer






Universal Corporation
P.O. Box 25099
Richmond, Virginia 23260


NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
The Annual Meeting of Shareholders of Universal Corporation will be held at our headquarters located at 9201 Forest Hill Avenue, Stony Point II Building, Richmond, Virginia 23235, on Wednesday, August 28, 2019, at 9:00 a.m., Eastern Time, for the following purposes:
(1)
to elect as directors the two nominees to the Board of Directors named in the accompanying Proxy Statement to serve three-year terms;
(2)
to approve a non-binding advisory resolution approving the compensation of our named executive officers;
(3)
to ratify the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2020;
(4) to approve the Universal Corporation Amended and Restated Executive Officer Annual Incentive Plan; and     
(5)
to act upon such other matters as may properly come before the meeting or any adjournments or postponements thereof.
Only holders of record of shares of our Common Stock at the close of business on July 19, 2019 shall be entitled to vote at the Annual Meeting.
Please note that brokers may not vote your shares on the election of directors, on the advisory vote on executive compensation, or on the approval of the Universal Corporation Amended and Restated Executive Officer Annual Incentive Plan in the absence of your specific instructions as to how to vote. Whether or not you expect to attend the Annual Meeting in person, it is important that your shares be represented and voted at the Annual Meeting. We urge you to vote online, by phone or complete, sign, date, and return the enclosed proxy card or voting instruction in the envelope provided. Beneficial owners of shares of our Common Stock held in street name through a bank or brokerage account should follow the enclosed instructions for voting their shares. We hope you are able to attend the Annual Meeting, but even if you cannot please vote your shares as promptly as possible.
 
By Order of the Board of Directors,
 
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PRESTON D. WIGNER
 
Secretary
July 24, 2019




PROXY STATEMENT
FOR THE ANNUAL MEETING OF SHAREHOLDERS
OF UNIVERSAL CORPORATION
APPROXIMATE DATE OF MAILING - JULY 24, 2019
This Proxy Statement sets forth certain information with respect to the accompanying proxy to be used at the 2019 Annual Meeting of Shareholders of Universal Corporation, which we refer to as the Annual Meeting, or at any adjournments or postponements thereof, for the purposes set forth in the accompanying Notice of Annual Meeting of Shareholders. The Board of Directors has designated our headquarters located at 9201 Forest Hill Avenue, Stony Point II Building, Richmond, Virginia 23235, as the place of the Annual Meeting.
The Board of Directors solicits this proxy and urges you to vote immediately. Unless the context otherwise indicates, reference to “Universal,” “we,” “us,” “our,” or “the Company” means Universal Corporation.
Our Annual Report on Form 10-K for the fiscal year ended March 31, 2019, which we refer to as the fiscal year 2019 Annual Report, is being mailed concurrently with this Proxy Statement to our shareholders. Unless otherwise specifically stated, our fiscal year 2019 Annual Report is not incorporated into this Proxy Statement and shall not be considered a part of this Proxy Statement or soliciting materials.
QUESTIONS AND ANSWERS FOR ANNUAL MEETING
Q:
Who is asking for my vote and why are you sending me this document?
A:
The Board of Directors asks that you vote on the matters listed in the Notice of Annual Meeting of Shareholders, which are more fully described in this Proxy Statement. We are providing this Proxy Statement and related proxy card or voting instruction to our shareholders in connection with the solicitation by the Board of Directors of proxies to be voted at the Annual Meeting. A proxy, if duly executed and not revoked, will be voted and if it contains any specific instructions, it will be voted in accordance with those instructions.
Q:
Who is eligible to vote?
A:
You may vote only if you owned shares of Universal Corporation common stock, which we refer to as Common Stock, at the close of business on July 19, 2019, the record date established by the Board of Directors under Virginia law for determining shareholders entitled to notice of and to vote at the Annual Meeting. We had outstanding as of the record date 24,971,489 shares of Common Stock, each of which is entitled to one vote per share.
Q:
What is a proxy?
A:
A proxy is your legal designation of another person to vote the stock you own. If you designate someone as your proxy or proxy holder in a written document, that document also is called a proxy or a proxy card. Messrs. Johan C. Kroner and Preston D. Wigner have been designated as proxies or proxy holders for the Annual Meeting. Proxies properly executed and received by our Secretary prior to the Annual Meeting and not revoked will be voted in accordance with the terms thereof.
Q:
What is a voting instruction?
A:
A voting instruction is the instruction form you receive from your bank, broker, or other nominee if you hold your shares of Common Stock in street name, which we refer to as broker shares. The instruction form instructs you how to direct your bank, broker, or other nominee, as record holder, to vote your shares of Common Stock.

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Q:
What am I voting on at the Annual Meeting?
A:
You will be voting on the following matters:
The election of the two nominees to the Board of Directors set forth in this Proxy Statement to serve three-year terms;
The approval of a non-binding advisory resolution approving the compensation of our named executive officers;
The ratification of the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2020;
The approval of the Universal Corporation Amended and Restated Executive Officer Annual Incentive Plan, which we refer to as the Annual Incentive Plan; and
Any other business properly raised at the Annual Meeting or any adjournments or postponements thereof.
We are not aware of any matters that are to come before the Annual Meeting other than those described in this Proxy Statement. If other matters do properly come before the Annual Meeting, however, it is the intention of the persons named in the enclosed proxy card to exercise the discretionary authority conferred by the proxy to vote such proxy in accordance with their best judgment.
Q:
What constitutes a quorum and how many votes must be present to hold the Annual Meeting?
A:
In order for the Annual Meeting to be conducted, a majority of the shares entitled to vote (i.e., a majority of the outstanding shares of Common Stock as of the record date) must be present in person or represented by proxy at the Annual Meeting for the transaction of business at the Annual Meeting. This is referred to as a quorum. Abstentions, withheld votes, and broker shares that are voted on any matter are included in determining the number of votes present. Broker shares that are voted on at least one matter will be counted for purposes of determining the existence of a quorum for the transaction of business at the Annual Meeting. Broker shares that are not voted on any matter will not be included in determining whether a quorum is present. In the event that a quorum is not present at the Annual Meeting, it is expected that the Annual Meeting will be adjourned or postponed to solicit additional proxies. It is very important, therefore, that you vote your shares.
Q:
What vote is needed to elect directors?
A:
The election of each nominee for director requires the affirmative vote of the holders of a plurality of the shares of Common Stock voted in the election of directors.
Q:
What vote is needed to approve the non-binding advisory resolution approving the compensation of our named executive officers?
A:
The approval of the non-binding advisory resolution approving the compensation of our named executive officers requires that the votes cast in favor of the proposal exceed the number of votes cast against the proposal. The Board of Directors and the Compensation Committee value the opinions of our shareholders. To the extent that there is any significant vote against executive compensation, the Board of Directors and the Compensation Committee will consider shareholder concerns and evaluate whether any actions are necessary to address those concerns.
Q:
What vote is needed to ratify the appointment of Ernst & Young LLP?
A:
The ratification of the appointment of Ernst & Young LLP requires that the number of votes cast in favor of the ratification exceed the number of votes cast in opposition to the ratification.
Q:
What vote is needed to approve the Annual Incentive Plan?
A:
The approval of the Annual Incentive Plan requires that the number of votes cast in favor of the proposal exceed the number of votes cast against the proposal.

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Q:
What are the voting recommendations of the Board of Directors?
A:
The Board of Directors recommends that shareholders vote “FOR” both of the proposed nominees for director named in this Proxy Statement; “FOR” the approval of the non-binding resolution approving named executive officer compensation; “FOR” the ratification of the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2020; and "FOR" the approval of the Annual Incentive Plan.
Q:
How do I vote?
A:
Registered shareholders (shareholders who hold Common Stock in certificated form as opposed to through a bank, broker, or other nominee) may vote in person at the Annual Meeting or by proxy. Registered shareholders have the following ways to vote by proxy:
Ÿ
by mail - complete, sign, date, and return the enclosed proxy card or voting instruction; or
Ÿ
over the Internet or by telephone - follow the instructions provided on the enclosed proxy card.
Registered shareholders are urged to deliver proxies by using the Internet, by calling the toll-free telephone number, or by completing and mailing the enclosed proxy card. The Internet and telephone voting procedures are designed to authenticate shareholders' identities, to allow shareholders to give their proxies, and to confirm that such instructions have been recorded properly. Instructions for voting over the Internet or by telephone are set forth on the enclosed proxy card. Registered shareholders may also send their proxies by completing, signing, and dating the enclosed proxy card and returning it as promptly as possible in the enclosed postage-paid envelope.
Shareholders who hold broker shares, which we refer to as street name shareholders, who wish to vote at the Annual Meeting should be provided voting instructions from the institution that holds their shares. If this has not occurred, please contact the institution that holds your shares. Street name shareholders may also be eligible to vote their shares electronically by following the voting instructions provided by the bank, broker, or other nominee that holds the shares, using either the Internet address or the toll-free telephone number provided on the voting instruction, or otherwise complete, date, and sign the voting instruction and return it promptly in the enclosed postage-paid envelope.
The deadline for voting electronically over the Internet or by telephone is 11:59 p.m., Eastern Time, on August 27, 2019.
Q:
Can I attend the Annual Meeting?
A:
The Annual Meeting is open to all holders of our Common Stock as of the close of business on the record date, July 19, 2019. We will not permit cameras, recording devices, or other electronic devices at the Annual Meeting. We encourage you to vote your shares by proxy, but you may also vote by attending the Annual Meeting and voting in person.
Q:
What do I need in order to attend the Annual Meeting in person?
A:
Any shareholder as of the record date may attend the Annual Meeting; however, street name shareholders must have a legal proxy from their bank or broker and bring that proxy to the Annual Meeting to confirm you are the beneficial owner, and they must bring evidence of stock holdings, such as a recent brokerage account statement. Upon arrival at the Annual Meeting, you will also be required to present government-issued photo identification, such as a driver's license or passport.
Q:
Can I withhold my vote?
A:
You may withhold your vote with respect to the election of directors.
Q:
Can I change or revoke my proxy?
A:
Any shareholder who gives a proxy may change or revoke his or her proxy at any time before it is voted at the Annual Meeting. A shareholder may change or revoke his or her proxy by:
Ÿ
giving written notice of revocation to our Corporate Secretary, whose address is on page 6 of this Proxy Statement;
Ÿ
executing a proxy dated as of a later date; or
Ÿ
voting in person at the Annual Meeting.

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If you voted over the Internet or by telephone, you can also revoke your vote by any of these methods or you can change your vote by voting again over the Internet or by telephone. If you decide to vote by completing, signing, dating, and returning the enclosed proxy card, you should retain a copy of the voter control number found on the proxy card in the event that you decide later to change or revoke your proxy over the Internet or by telephone. Your attendance at the Annual Meeting will not itself revoke a proxy.
If you are a street name shareholder, you must follow the instructions found on the voting instruction card provided by the bank, broker, or other nominee, or contact your bank, broker, or other nominee in order to change or revoke your previously given proxy.
Q:
How will my shares be voted if I sign, date, and return my proxy card or voting instruction card, but do not provide complete voting instructions with respect to each proposal?
A:
Shareholders should specify their choice for each matter on the enclosed proxy. If no specific instructions are given, it is intended that all proxies that are signed and returned will be voted “FOR” the election of both of the nominees for director named in this Proxy Statement; “FOR” the approval of the non-binding resolution approving named executive officer compensation; “FOR” the ratification of the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2020; and “FOR” the approval of the Annual Incentive Plan; and according to the discretion of the proxy holders on any other business proposal properly raised at the Annual Meeting.
As to any other business that may properly come before the Annual Meeting, the persons named in the enclosed proxy card or voting instruction will vote the shares of Common Stock represented by the proxy in the manner as the Board of Directors may recommend, or otherwise in the proxy holders' discretion. The Board of Directors does not presently know of any other such business.
Q:
Will my shares be voted if I do not provide my proxy or voting instructions?
A:
It will depend on how your ownership of shares of Common Stock is registered. If you own your shares as a registered holder, which means that your shares of Common Stock are registered in your name with our transfer agent, and you do not mail your proxy, vote online or by phone in advance as described on page 3, or you do not vote in person at the Annual Meeting, your unvoted shares will not be voted at the Annual Meeting. They also will not count toward the quorum requirement, which is explained under “What constitutes a quorum and how many votes must be present to hold the Annual Meeting?” on page 2 of this Proxy Statement.
If you are a street name shareholder, which means that your shares are registered with our transfer agent in the name of your bank, broker or other nominee, then your bank, broker, or other nominee may or may not vote your shares in its discretion if you have not provided voting instructions to the bank, broker, or other nominee when permitted. Whether the bank, broker or other nominee may vote your shares depends on the proposals before the Annual Meeting. Brokers have the discretionary authority under the rules of the New York Stock Exchange, which we also refer to as the NYSE, to vote shares for which their clients do not provide voting instructions on certain “routine” matters.
The rules of the NYSE, however, do not permit your bank, broker or other nominee to vote your shares on proposals that are not considered “routine.” When a proposal is not a routine matter and your bank, broker or other nominee has not received your voting instructions with respect to that proposal, your bank, broker, or other nominee cannot vote your shares on that proposal. Where brokers do not have discretion to vote or do not exercise such discretion, the inability or failure to vote is referred to as a “broker non-vote.” Under circumstances where a broker is not permitted to, or does not, exercise its discretion, assuming proper disclosure to us of such inability to vote, broker non-votes will not be counted as voting in favor of or against the particular matter. Please note that your bank, broker or other nominee may not vote your shares with respect to (i) the election of the two nominees for director, (ii) the approval of the non-binding advisory resolution approving the compensation of our named executive officers, or (iii) the proposal to approve the Annual Incentive Plan; in the absence of your specific instructions as to how to vote with respect to these matters. Under the rules of the NYSE, these matters are not considered “routine” matters. Based on NYSE rules, we believe that the ratification of the appointment of Ernst & Young LLP is a routine matter for which your bank, broker or other nominee may vote on behalf of their clients if no voting instructions are provided. Therefore, if you are a street name shareholder and you do not return your voting instruction card, your bank, broker or other nominee may vote your shares on the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm. Please return your proxy card or voting instructions so your vote can be counted.

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Q:
How are abstentions and broker non-votes counted?
A:
With respect to the election of directors, abstentions, withheld votes and broker non-votes will not be included in the vote total for the proposal to elect the nominees for director named in this Proxy Statement and will not affect the outcome of the vote for that proposal.
With respect to the approval of the non-binding advisory resolution approving the compensation of our named executive officers, abstentions and broker non-votes will have no effect on the proposal and will not count either in favor of, or against, the non-binding proposal.
With respect to the ratification of the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2020, abstentions and broker non-votes will have no effect on the proposal and will not count either in favor of, or against, the proposal.
With respect to the approval of the Annual Incentive Plan, abstentions and broker non-votes will have no effect on the proposal and will not count either in favor of, or against, the proposal.
Q:
Where can I find the results of the Annual Meeting?
A:
We expect to announce the preliminary voting results at the Annual Meeting and disclose the final results in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission within four business days after the Annual Meeting.
Q:
Who pays for the solicitation of proxies?
A:
We will pay all of the costs associated with this proxy solicitation. Proxies are being solicited by mail and may also be solicited in person or by telephone, facsimile, or other means of electronic transmission by our directors, officers, and employees. We will reimburse banks, brokerage firms, and other custodians, nominees, and fiduciaries for their reasonable expenses in forwarding proxy materials to the beneficial owners of shares of Common Stock. It is contemplated that additional solicitation of proxies will be made by D.F. King & Co., Inc., 48 Wall Street, 22nd Floor, New York, New York 10005, at an anticipated cost to us of approximately $8,500, plus reimbursement of out-of-pocket expenses for such items as mailing, copying, phone calls, faxes, and other related matters. In addition, we will indemnify D.F. King against any losses arising out of D.F. King's proxy soliciting services on our behalf.
Q:
Could other matters be decided at the Annual Meeting?
A:
The Board of Directors does not know of any other business that may be brought before the Annual Meeting. However, if any other matters should properly come before the Annual Meeting or at any adjournment or postponement thereof, it is the intention of the persons named in the enclosed proxy card to vote on such matters as they, in their discretion, may determine.
Q:
Where can I find Universal Corporation's corporate governance materials?
A:
Our Corporate Governance Guidelines, including our independence standards for members of the Board of Directors, Code of Conduct, and the charters of the Audit Committee, the Compensation Committee, The Nominating and Corporate Governance Committee, and all other standing committees, are available under the “Governance” section of our Internet website at http://investor.universalcorp.com/corporate-governance and are available in print to any shareholder upon request by contacting us at the following address or phone number:
Universal Corporation
P.O. Box 25099
Richmond, Virginia 23260
Attention: Investor Relations
Telephone: (804) 359-9311

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Q:
How do I communicate with the Board of Directors?
A:
Shareholders and other interested parties may at any time direct communications to the Board of Directors as a whole, to the director who presides at the executive sessions of the non-employee directors, or to any individual member of the Board of Directors, through our Internet website or by contacting our Corporate Secretary. The “Governance - Contact the Board” section of our Internet website at http://investor.universalcorp.com/corporate-governance/contact-the-board contains an e-mail link established for receipt of communications with directors, and communications can also be delivered by mail by sending requests to our Corporate Secretary at the following address:
Universal Corporation
P.O. Box 25099
Richmond, Virginia 23260
Attention: Corporate Secretary
Telephone: (804) 359-9311
Shareholders making such communications are encouraged to state that they are shareholders and provide the exact name in which their shares of Common Stock are held and the number of shares held. Each individual communicating with the Board of Directors will receive a written acknowledgment from or on behalf of our Secretary after receipt of the communication sent in the manner described above. After screening such communications for issues unrelated to shareholder interests, our Secretary will distribute communications to the intended recipient(s) as appropriate. The process for such screening has been approved by our non-employee directors.

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IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON AUGUST 28, 2019.
Our Proxy Statement and fiscal year 2019 Annual Report are both available free of charge under the “Investor - Financial Information” section of our Internet website at http://investor.universalcorp.com/financial-information.
Our 2019 Annual Report to Shareholders, which includes a copy of our fiscal year 2019 Annual Report (excluding exhibits) as filed with the U.S. Securities and Exchange Commission ("SEC"), is being mailed to shareholders with this Proxy Statement.
We will provide additional copies of our fiscal year 2019 Annual Report, including the financial statements and financial statement schedules, without charge to any person to whom this Proxy Statement has been delivered if they so request. Requests should be directed to Investor Relations at the address or phone number provided on page 5 of this Proxy Statement.
We make available free of charge through our Internet website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, which is referred to herein as the Exchange Act, as well as reports on Forms 3, 4 and 5 filed by our directors and executive officers pursuant to Section 16 of the Exchange Act, as soon as reasonably practicable after such documents are electronically filed with, or furnished to, the SEC. The information on our Internet website is not, and shall not be deemed to be, a part of this Proxy Statement or incorporated into any other filings we make with the SEC.

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PROPOSAL ONE
ELECTION OF DIRECTORS
In accordance with our Articles of Incorporation and Bylaws, the Board of Directors is divided into three classes. The term of office of one of the three classes of directors expires each year, and each class is elected for a three-year term.
Six members of our board of directors have previously been elected to terms expiring in 2020 or 2021, as indicated below. The Compensation Committee has recommended to our Board of Directors, and our Board of Directors has approved, the nomination of the two remaining nominees set forth below to be elected for three-year terms at the Annual Meeting.
The following pages set forth certain information for each nominee, as well as all other incumbent directors, as of March 31, 2019, except as otherwise noted. All of the nominees and incumbent directors listed below are directors previously elected by the shareholders. Each nominee has consented to being named in this Proxy Statement and to serve if elected.
The election of each nominee for director requires the affirmative vote of the holders of a plurality of the shares of Common Stock cast in the election of directors. With a plurality vote, the nominees receiving the highest vote totals for the director positions up for election will be elected. Proxies cannot be voted for a greater number of persons than the number of nominees named in this Proxy Statement. Unless otherwise specified in the accompanying form of proxy, it is intended that votes will be cast for the election of all of the nominees as directors. If, at the time of the Annual Meeting, any nominee should be unavailable to serve as a director, it is intended that votes will be cast, pursuant to the enclosed proxy, for such substitute nominee as may be nominated by the Board of Directors. The Board of Directors has no reason to believe that any of the nominees will be unavailable to serve.
Set forth below is information concerning the age, principal occupation, employment and directorships during the past five years, positions with the Company of each nominee and director, the year in which he or she first became a director of the Company and his or her term of office as a director. Also set forth below is a brief discussion of the specific experience, qualifications, attributes, or skills that led to the conclusion that each nominee and director should serve as a director as of the date of this Proxy Statement, in light of the Company's business and structure.
Recommendation of the Board of Directors
THE BOARD OF DIRECTORS RECOMMENDS THAT SHAREHOLDERS VOTE “FOR” EACH DIRECTOR NOMINEE IN PROPOSAL ONE.



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Incumbent Directors Whose Terms Expire in 2019 and Are Nominated For Election (Class I Directors)

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Thomas H. Johnson
Chief Executive Officer, Taffrail Group, LLC
 
Age: 69
Independent Director since 2001
Chairman, Compensation Committee
Member, Executive Committee
Member, Nominating and Corporate Governance Committee




THOMAS H. JOHNSON serves as Chief Executive Officer of Taffrail Group, LLC, an international strategic advisory firm, a position he has held since the firm’s founding in 2008. In addition, Mr. Johnson has served as Managing Partner of THJ Investments, L.P., a private investment firm, since November 2005. From 1997 to 2005, Mr. Johnson served as Chairman and Chief Executive Officer of Chesapeake Corporation, a global specialty packaging company, and then served as its Vice Chairman until April 2006. Prior to that, Mr. Johnson served as President and Chief Executive Officer of Riverwood International Corporation (and its predecessor company, Manville Forest Products Corporation). He previously held numerous management positions within Mead Corporation including President of its Paperboard Division and Director, Strategic Planning and Corporate Development. Among other accomplishments over the course of his 35-year career, Mr. Johnson established and managed subsidiaries and joint ventures in Asia-Pacific, South America and Europe, with operations in over 40 countries. Mr. Johnson has substantial board experience, including serving as an independent director of Coca-Cola Enterprises, Inc., a marketer, producer and distributor of Coca-Cola products, from 2007 until its merger with Coca-Cola European Partners ("CCEP") in 2016. CCEP is listed on the London and New York Stock exchanges. Following the merger, he continued to serve as a director of CCEP.  Mr. Johnson currently serves as CCEP’s Senior Independent Director, as Chairman of the Nominations Committee, and as a member of the Remuneration Committee. Previously, Mr. Johnson was a director and member of the Audit and Compensation Committees of Tumi Holdings, Inc., a global distribution company offering travel and business products in multiple categories, until their merger with Samsonite International S.A. in 2016. Mr. Johnson has served on several other boards including Superior Essex, Inc., a manufacturer of wire and cable products, GenOn Corporation, an electricity producer, and its predecessor company, Mirant Corporation, until its merger with NRG Energy, Inc., and ModusLink Global Solutions, Inc., a supply chain business process management company.
Mr. Johnson's extensive executive management experience, including with strategy, investment, manufacturing, and distribution activities, and his service on the boards of several multinational corporations, provides the Board of Directors a valuable perspective on governance best practices and executive leadership, including in international markets such as Europe and Asia. Mr. Johnson has been recognized for his work in support of U.S. trade and business development in China, receiving the Marco Polo Award from the State Bureau of Foreign Experts, Peoples Republic of China, in 1999.

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Michael T. Lawton
Former Executive Vice President and Chief Financial Officer, Domino’s Pizza, Inc.
 
Age: 60
Independent Director since 2016
Chairman, Audit Committee
Member, Compensation Committee
Member, Executive Committee


MICHAEL T. LAWTON retired as Executive Vice President and Chief Financial Officer of Domino’s Pizza, Inc., a global pizza restaurant chain and franchise pizza delivery company, (“Domino’s”) in August 2015. In this position, Mr. Lawton oversaw all financial functions, including financial reporting, treasury, internal audit, tax, risk management, budgeting and analysis, as well as providing strategic oversight. During his time as Chief Financial Officer, Domino’s completed a refinancing of the company with a non-traditional asset backed securitization private placement. Mr. Lawton previously served in numerous executive roles with Domino's, including Interim Chief Information Officer, Executive Vice President of Supply Chain Services, in which he was responsible for North America supply chain operations, and Executive Vice President of International, during which he managed the international business during a period of rapid growth, which included entering 15 new markets. While in this role, he also led a cross-functional task force charged with evaluating the traffic decay in the U.S. business and identifying necessary strategic changes to reverse the trend. He began his tenure with Domino’s in 1999 as Vice President of International Finance, in which he worked with franchises across over 60 markets to identify opportunities for growth. From 1986 to 1999, Mr. Lawton held various financial and general management positions with Gerber Products Company, a subsidiary of Nestle, including serving as Senior Vice President and Chief Operating Officer. Earlier in his career, Mr. Lawton held several positions at Ernst & Whinney (now Ernst & Young) ranging from staff auditor to audit manager, serving clients in manufacturing, health care and wholesale. Since 2013, Mr. Lawton has been a Director of La-Z-Boy, Inc., a manufacturer, importer, distributor and retailer of upholstery furniture products, serving as Chairman of its Audit Committee and is a member of its Compensation Committee.
Mr. Lawton’s significant experience as a senior executive of a public company and well-known consumer brand, as well as his public company board experience, is valuable to the Board of Directors. He has extensive experience in risk oversight, executive compensation and corporate governance. In addition, Mr. Lawton brings to the Board of Directors a strong background in accounting and finance as well as extensive international management and supply chain experience.

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Incumbent Directors Whose Terms Expire in 2020 (Class II Directors)

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George C. Freeman, III
Chairman, President, and Chief Executive Officer, Universal Corporation
 
Age: 56
Director since 2008
Chairman, Executive Committee
Member, Finance and Pension Investment Committee


GEORGE C. FREEMAN, III has been Universal's Chief Executive Officer since April 2008, and President since December 2006. Previously, Mr. G. Freeman served as Universal’s General Counsel and Secretary from February 2001 until November 2005, and was elected Vice President in November 2005. Prior to joining Universal, Mr. G. Freeman served as a law clerk for the Honorable Richard S. Arnold, Circuit Judge, United States Court of Appeals for the Eighth Circuit; a law clerk for the Honorable Lewis F. Powell, Jr., Associate Justice, United States Supreme Court; and an associate with Hunton & Williams, an international law firm. Mr. G. Freeman is also a director of Tredegar Corporation, a manufacturer of plastic films and aluminum extrusions, since May 2011 and serves as chair of its Executive Compensation Committee and is a member of its Nominating and Governance Committee. He has served as Chairman of the Board of Universal since his election in 2008.
Through his years of service with Universal and as Chairman of the Board, Mr. G. Freeman provides strong and thoughtful leadership to the Board of Directors, utilizing his extensive risk oversight, management and corporate governance experience. In addition, as President and Chief Executive Officer, Mr. G. Freeman is able to communicate to and inform the Board about our management team, day-to-day operations, customer relationships, and important industry developments. The Board believes that Mr. G. Freeman's deep industry knowledge, financial expertise and forward-looking thinking brings an invaluable perspective to our current operations and our ongoing relationships with customers and suppliers, providing great value to the Board of Directors.

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Lennart R. Freeman
Former President and Chief Executive Officer, North American Division, Swedish Match AB
 
Age: 67
Independent Director since 2013
Member, Audit Committee
Member, Compensation Committee
Member, Executive Committee
*Mr. L. Freeman has no relation to Mr. G. Freeman


LENNART R. FREEMAN worked with Swedish Match AB, a Swedish producer and global distributor of smokeless tobacco products (“Swedish Match”), for over 30 years, serving in various executive roles of increasing responsibility, including as President and Chief Executive Officer of its North American Division and as President of its International Division. Under his leadership, the North American Division tripled its sales and operating income and the International Division successfully completed a major restructuring, resulting in the sale of the South African business to Philip Morris International in 2009 and the merger of the Cigar and Pipe Tobacco business with Scandinavian Tobacco Group in 2010, creating the second largest cigar company in the world. Earlier in his career at Swedish Match, he served as Managing Director, Cricket Lighters and as President for the Cigarette Division. Following his retirement from Swedish Match in 2011 and until December 2014, he served as a director of the board of Dometic Group AB, a privately-held global provider of comfort products for the recreational vehicle, automotive and marine markets.
Mr. L. Freeman is a well-recognized tobacco industry veteran, receiving the “Giant of the Industry Award” which was presented by the California Distributors Association in October 2005 and the “Captain of the Industry Award” which was presented by the Pennsylvania Distributors Association in October 2000. Mr. L. Freeman has no relation to Mr. G. Freeman.
Mr. L. Freeman's extensive experience in the tobacco industry adds depth to the Board of Director's ability to evaluate and develop industry opportunities and strategies. His years with Swedish Match, a multinational company, also adds a unique customer and international perspective to the Board of Directors.

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Eddie N. Moore, Jr.
Former President and Chief Executive Officer, Norfolk State University
President Emeritus, Virginia State University
 
Age: 71
Lead Independent Director since 2016
Independent Director since 2000
Member, Audit Committee
Member, Executive Committee
Member, Finance and Pension Investment Committee



EDDIE N. MOORE, JR. served as President and Chief Executive Officer of Norfolk State University, a public, historically black liberal arts university from 2015 until 2017, and as interim President and Chief Executive Officer beginning in 2013. Mr. E. Moore was interim President and then Chief Executive Officer and President of St. Paul's College, a private, historically black liberal arts college, from November 2011 to June 2012. Beginning in June 1993 and until July 2010, Mr. E. Moore was the President of Virginia State University, a public research university. Upon retirement as President in 2010, he was named President Emeritus of Virginia State University, a position which he continues to hold. He previously served as University Comptroller at The College of William & Mary for two years, and as state treasurer for the Commonwealth of Virginia for three years, heading the Department of the Treasury and serving on 15 state boards and authorities with oversight responsibility for over $20 billion of the Commonwealth’s assets and investment portfolio. For the first 14 years of his career, Mr. E. Moore worked at Gulf Oil Corporation, which specializes in exploring, producing, refining and marketing of petroleum and natural gas. During his tenure at Gulf Oil Corporation, Mr. E. Moore rose through the ranks, ultimately directing major components of the company’s accounting and budgeting functions. Since 2005, he has served as a director of Owens & Minor, Inc., a distributor of national name-brand medical and surgical supplies and a health care supply chain management company, and is a member of its Audit Committee and Governance and Nominating Committee.
Mr. E. Moore's strong background in accounting and finance and his leadership experience gained through managing prominent higher-educational institutions is valuable to the Board of Directors. Mr. E. Moore's experience in both the public and private sectors brings important perspectives and disciplines to the Board of Directors' deliberations and decision-making processes.

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Incumbent Directors Whose Terms Expire in 2021 (Class III Directors)

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Diana F. Cantor
Partner, Alternative Investment Management, LLC
Vice Chairwoman and Trustee, Virginia Retirement System
 
Age: 61
Independent Director since 2012
Chairman, Nominating and Corporate Governance Committee
Member, Compensation Committee
Member, Finance and Pension Investment Committee



DIANA F. CANTOR is currently a Partner at Alternative Investment Management, LLC, an independent privately-held investment management firm, a position she has held since January 2010. In this role, she provides executive oversight as a member of the Board of Managers and advises on strategic business development and investment activities. Mrs. Cantor also serves as Vice Chairwoman and a Trustee of the Virginia Retirement System, for which she is responsible for the oversight and administration of the Commonwealth of Virginia's retirement system, the 19th largest public or private pension system in the United States. Mrs. Cantor is the co-founder and formerly a Managing Director of Hudson James Group LLC, a strategic advisory and consulting services firm, a position she held from February 2012 to December 2014. Mrs. Cantor served as a Managing Director with New York Private Bank and Trust from January 2008 through December 2009, where she participated in the expansion of the Bank’s wealth management activities. She is the founder and formerly an Executive Director of the Virginia College Savings Plan, an independent agency of the Commonwealth of Virginia, a position she held from 1996 to 2007. In this role, she was responsible for the implementation and investment management of a $27 billion program. Earlier in her career, she served as a Vice President of Richmond Resources, Ltd., a real estate development, construction and management company, and as a Vice President at Goldman, Sachs & Co., overseeing the firm’s leveraged buyout and internal investment funds and the merchant banking operations. Mrs. Cantor serves on the board of directors of VICI Properties Inc., an experiential-asset focused real estate investment trust, since 2018, and is both Chairman of its Audit Committee and a member of the Nominating and Governance Committee. She also serves as a director of Domino's Pizza, Inc., a global pizza restaurant chain and franchise pizza delivery company, since 2005, and is Chairman of its Audit Committee. Mrs. Cantor previously served as a director and member of the Audit Committee of Revlon, Inc., a global cosmetics company, from 2013 to 2015, as a director of The Edelman Financial Group, Inc., a provider of investment advice, from 2011 to 2012, and as a director and Chairman of the Audit Committee of Media General, Inc., a provider of news, information and entertainment from 2005 until its merger with Nexstar Broadcasting Group, Inc. to form Nexstar Media Group, Inc. in January 2017.
Mrs. Cantor possesses extensive investment, financial and legal experience, in addition to significant public company directorship and committee experience, all of which add important, multi-disciplinary financial and strategic perspective to the Board of Directors. Her service on the boards of public multinational corporations offers the Board of Directors valuable insights on governance best practices and executive leadership.

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Robert C. Sledd
Managing Partner, Pinnacle Ventures, LLC, and
Sledd Properties, LLC
 
Age: 66
Independent Director since 2009
Chairman, Finance and Pension Investment Committee
Member, Audit Committee
Member, Nominating and Corporate Governance Committee


ROBERT C. SLEDD is Managing Partner of Pinnacle Ventures, LLC, a venture capital firm, and Sledd Properties, LLC, an investment company, and has held these roles since 2008 and 2001, respectively. Mr. Sledd served as the Interim President and Chief Executive Officer of Owens & Minor, Inc. from November 2018 to March 2019. From January 2010 until January 2014, Mr. Sledd served as the Senior Economic Advisor to the former Governor of Virginia and was responsible for the development of Virginia’s strategic economic development plan and oversight in coordination with the Secretary of Commerce. In 1987, Mr. Sledd co-founded and served as Chief Executive Officer of Performance Food Group Company (“PFG”). During his tenure at PFG, Mr. Sledd oversaw the development and implementation of its strategic plan, becoming Chairman and Chief Executive Officer in 1995. Under his leadership, PFG became the third largest foodservice distributor in the U.S. and the largest product processor and bagged salad supplier to both the retail and foodservice markets with approximately $7 billion in sales. Mr. Sledd remained Chairman until PFG was taken private in June 2008. 
Since 1996, Mr. Sledd has served as a director on the board of Pool Corporation, a wholesale distributor of swimming pool supplies, equipment, and related leisure products, and is a member of the Audit and Compensation Committees. Over this time, Pool Corporation has been among the top performing companies on the Nasdaq. Since 2007, he has served as a director of Owens & Minor, Inc., a distributor of national name-brand medical and surgical supplies and a healthcare supply chain management company, and is a member of the Audit and Governance Committees. 

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Thomas H. Tullidge, Jr.
Chief Strategy Officer, Legal and Finance, and a Co-Founder of Luxon Financial, LLC
 
Age: 62
Independent Director since 2018
Member, Audit Committee
Member, Finance and Pension Investment Committee
Member, Nominating and Corporate Governance Committee


THOMAS H. TULLIDGE, JR. is Chief Strategy Officer, Legal and Finance, and a co-founder of Luxon Financial, LLC., a wealth management, insurance, and asset management service provider. In this role, he is responsible for developing, communicating, executing, and sustaining corporate strategic initiatives. Previously, Mr. Tullidge held several senior level positions within the Mergers and Acquisitions Group of Wachovia Securities, formerly First Union Securities, including Head of the Technology Mergers and Acquisitions Group. During his tenure at Wachovia Securities, Mr. Tullidge also led the Healthcare Mergers and Acquisitions Group and executed transactions across a wide range of industries in addition to healthcare and technology, including Business Services, Media and Entertainment, and Restaurants. Prior to joining First Union, he was a partner at Jefferson Capital Partners, Ltd., a private equity firm, and before that he served as Vice President in Business Development and as Senior Vice President, General Counsel and Corporate Secretary with Trigon Blue Cross Blue Shield. Mr. Tullidge was also a Partner with the law firm of McGuireWoods LLP. He serves as a member of Luxon Financial’s Executive Committee, and as a director of Carpenter Co., a privately-held company and the world's largest producer of comfort cushioning products, and of Gray Lumber Company, a privately held real estate investment firm.
Mr. Tullidge’s extensive experience in structuring, negotiating, and executing mergers and acquisitions, joint ventures, and other complex corporate finance transactions domestically and internationally will provide the Board of Directors valuable executive leadership, financial and corporate strategy perspective.


16




STOCK OWNERSHIP
Principal Shareholders
The following table sets forth as of the record date, July 19, 2019, certain information with respect to the beneficial ownership of shares of Common Stock by each person or group we know to beneficially own more than 5% of the outstanding shares of such stock.
Name and Address of Beneficial Owner
 
Number of Shares
 
Percent of Class(1)
 
 
(#)
 
(%)
BlackRock, Inc.
 
3,656,179

(2) 
 
14.6
%
55 East 52nd Street
 
 
 
 
 
New York, New York 10055
 
 
 
 
 
Vanguard Group, Inc.
 
2,699,945

(3) 
 
10.8
%
   100 Vanguard Boulevard
 
 
 
 
 
   Malvern, Pennsylvania 19355
 
 
 
 
 
Dimensional Fund Advisors LP
 
2,099,275

(4) 
 
8.4
%
Palisades West, Building One
 
 
 
 
 
6300 Bee Cave Road
 
 
 
 
 
Austin, Texas 78746
 
 
 
 
 
(1) 
The percentages shown in the table are based on 24,971,489 shares of Common Stock outstanding on July 19, 2019.
(2) 
An amended Schedule 13G/A filed with the SEC on January 31, 2019, indicates that BlackRock, Inc., acting as a parent holding company, reported that it has sole voting power over 3,594,354 shares of Common Stock, shared voting power over no shares of Common Stock, sole dispositive power over 3,656,179 shares of Common Stock and shared dispositive power over no shares of Common Stock.
(3) 
As reported on an amended Schedule 13G/A filed with the SEC on February 11, 2019. According to this filing, Vanguard Group, Inc. possessed sole voting power over 23,857 shares of Common Stock, shared voting power over 1,619 shares of Common Stock and sole dispositive power over 2,676,657 shares of Common Stock with shared dispositive power over 23,288 shares of Common Stock. Vanguard Fiduciary Trust Company (“VFTC”), a wholly-owned subsidiary of The Vanguard Group, Inc., was reported to be the beneficial owner of 21,669 shares of Common Stock, as a result of VFTC serving as investment manager of collective trust accounts. Vanguard Investments Australia, Ltd. (“VIA”), a wholly-owned subsidiary of The Vanguard Group, Inc., was reported to be the beneficial owner of 3,807 shares of Common Stock, as a result of VIA serving as investment manager of Australian investment offerings.
(4) 
As reported on an amended Schedule 13G/A filed with the SEC on February 8, 2019. The amended Schedule 13G indicates that Dimensional Fund Advisors LP, in its capacity as investment adviser, sub-advisor and/or manager to certain registered investment companies, commingled funds, group trusts and separate accounts (collectively, “Funds”), has the sole voting power over 2,073,260 shares of Common Stock, shared voting power over no shares of Common Stock, sole dispositive power over 2,099,275 shares of Common Stock and shared dispositive power over no shares of Common Stock that are owned by such Funds. According to its Schedule 13G/A, Dimensional Fund Advisors LP disclaims beneficial ownership of such shares.



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Directors and Executive Officers
The following table sets forth as of the record date, July 19, 2019, certain information with respect to the beneficial ownership of shares of Common Stock by (i) each director or nominee, (ii) each executive officer listed in the “Summary Compensation Table”, who we refer to as the “named executive officers”, and (iii) all current directors and executive officers as a group.
Name of Beneficial Owner
 
Number of Shares(1)
 
Percent of Class(2)
 
 
(#)
 
(%)
Theodore G. Broome
 
34,127

 
*

Diana F. Cantor
 
10,543

 
*

George C. Freeman, III
 
263,238

 
1.1
%
Lennart R. Freeman
 
8,799

 
*

Airton L. Hentschke
 
67,684

 
*

Thomas H. Johnson
 
18,500

 
*

Johan C. Kroner
 
8,854

 
*

Michael T. Lawton
 
5,506

 
*

David C. Moore(3)
 
41,296

 
*

Eddie N. Moore, Jr.
 
25,548

 
*

Robert C. Sledd
 
11,815

 
*

Thomas H. Tullidge, Jr.
 
2,558

 
*

Preston D. Wigner
 
45,754

 
*

All current directors and all executive officers as a group (18 persons)
 
611,122

 
2.4
%
*
Percentage of ownership is less than 1% of the outstanding shares of Common Stock.
(1) 
No executive officers or directors have pledged shares of Common Stock as security.
(2) 
The percentages shown in the table are based on 24,971,489 shares of Common Stock outstanding on July 19, 2019.
(3) 
Mr. D. Moore retired on August 31, 2018.


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CORPORATE GOVERNANCE AND COMMITTEES
General
Our business and affairs are managed under the direction of the Board of Directors in accordance with the Virginia Stock Corporation Act and our Articles of Incorporation and Bylaws. Members of the Board of Directors are kept informed of our business through discussions with the Chairman, President, and Chief Executive Officer and other officers, by reviewing materials provided to them and by participating in meetings of the Board of Directors and its committees. The corporate governance practices we follow are summarized below.
Corporate Governance Guidelines
The Board of Directors has adopted written Corporate Governance Guidelines that set forth the practices of the Board of Directors with respect to the qualification and selection of directors, director orientation and continuing education, director responsibilities, Board of Directors composition and performance, director access to management and independent advisors, director compensation, management evaluation and succession, evaluation of the Board of Directors' performance, and various other issues. The Corporate Governance Guidelines are available to shareholders and the public free of charge under the “Corporate Governance” section of our Internet website at http://investor.universalcorp.com/corporate-governance. A printed copy is available to any shareholder free of charge upon written request directed to Investor Relations at the address provided on page 5 of this Proxy Statement.
Code of Conduct
The Board of Directors has adopted a written Code of Conduct applicable to our directors, officers, and employees, and the directors, officers and employees of each of our subsidiaries and controlled affiliates. The Code of Conduct satisfies the NYSE requirements for a “Code of Business Conduct and Ethics” and the SEC definition of a “Code of Ethics for Senior Financial Officers.” The Code of Conduct addresses such topics as protection and proper use of company assets, compliance with applicable laws and regulations, accuracy and preservation of records, accounting and financial reporting, conflicts of interest, and insider trading. The Code of Conduct is available to shareholders and the public free of charge under the "Compliance" section of our Internet website at http://www.universalcorp.com/Compliance. A printed copy is available to any shareholder free of charge upon written request directed to Investor Relations at the address provided on page 5 of this Proxy Statement.
Director Independence
The Board of Directors, in its business judgment, has determined that each member of the Board of Directors, except Mr. G. Freeman, our Chairman, President, and Chief Executive Officer, is independent as defined by the NYSE listing standards and our Corporate Governance Guidelines. In reaching this conclusion and as set forth in the independence standards of our Corporate Governance Guidelines, the Board of Directors evaluated each director or nominee for director in light of the specified independence tests set forth in the NYSE listing standards. In addition, the Board of Directors considered whether we and our subsidiaries conduct business and have other relationships with organizations of which certain members of the Board of Directors or members of their immediate families are or were directors or officers. There has been no such business or relationships for the past three fiscal years.
Executive Sessions
The independent directors of the Board of Directors meet in executive session without management or employee directors present. Although designated to meet at least annually, during fiscal year 2019 the independent directors met in executive session four times. The independent directors designate the Lead Independent Director, who is responsible for presiding over the executive sessions of the independent directors. For fiscal year 2019, the independent directors designated Mr. E. Moore as the Lead Independent Director. The Lead Independent Director is responsible for advising the Chairman, President, and Chief Executive Officer of the outcome of any decisions reached or suggestions made at these sessions. Executive sessions where non-employee directors meet on an informal basis may be scheduled either before or after each regularly scheduled Board of Directors meeting.

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Communications with Directors
Interested parties may at any time direct communications to the Board of Directors as a whole, to the Lead Independent Director, or to any individual member of the Board of Directors, through our Internet website or by contacting our Secretary. The “Corporate Governance - Contact the Board” section of our Internet website at http://investor.universalcorp.com/corporate-governance/contact-the-board contains an e-mail submission form established for submitting communications to directors. Communications can also be delivered by mail by sending requests to our Corporate Secretary, whose address is on page 6 of this Proxy Statement.
Shareholders making such communications are encouraged to state that they are shareholders and provide the exact name in which their shares of Common Stock are held and the number of shares held. Each individual communicating with the Board of Directors will receive a written acknowledgment from or on behalf of our Secretary after receipt of the communication sent in the manner described above. After screening such communications for issues unrelated to shareholder interests, our Secretary will distribute communications to the intended recipient(s) as appropriate. The process for such screening has been approved by our independent directors.
Board and Committee Meeting Attendance
During fiscal year 2019, there were six meetings of the Board of Directors. Each director attended 75% or more of the total number of meetings of the Board of Directors and of the committees on which they served.
Board Leadership Structure and Role in Risk Oversight
Board Leadership Structure
The Board of Directors does not have a policy on whether or not the role of the Chief Executive Officer and Chairman should be separate or, if it is to be separate, whether the Chairman should be selected from the non-employee directors or be an employee. We operate with one individual, Mr. G. Freeman, serving as Chairman of the Board, President, and Chief Executive Officer. Mr. G. Freeman was elected by the Board of Directors as President on December 12, 2006, Chief Executive Officer on April 1, 2008 and Chairman of the Board on August 5, 2008. Prior to his election as our President and Chief Executive Officer, Mr. G. Freeman served as our General Counsel and Secretary from February 1, 2001 until November 2005, when he was elected Vice President. The Board of Directors believes that because Mr. G. Freeman has unique and extensive experience and understanding of our business, he is well situated to lead and execute strategy and business plans to maximize shareholder value by having a combined role of Chairman of the Board, President, and Chief Executive Officer.
The Company's Corporate Governance Guidelines permit the individual who serves as Chief Executive Officer to serve as Chairman of the Board of Directors. In order to ensure that independent directors continue to play a leading role in our governance, however, the Board of Directors established the position of a Lead Independent Director in our Corporate Governance Guidelines. Mr. E. Moore currently serves as our Lead Independent Director. The Lead Independent Director is elected by the independent directors and ensures that (i) the Board of Directors operates independently of management, and (ii) directors and shareholders have an independent leadership contact. The Lead Independent Director, who must satisfy our independence standards, is responsible for presiding over the executive sessions of the independent directors and performing such other duties as may be delegated to the position by the Board of Directors. The Lead Independent Director also has the following additional roles and responsibilities:
chair Board of Directors meetings when the Chairman of the Board of Directors is not present or when there is a potential conflict of interest;
call meetings and set agendas for executive sessions of the independent directors;
preside over meetings of the independent directors and, as appropriate, provide prompt feedback to the Chief Executive Officer and Chairman of the Board of Directors;
serve as a liaison between the independent directors and the Chief Executive Officer and Chairman of the Board of Directors and senior management to report or raise matters;
serve as a “sounding board” and mentor to the Chief Executive Officer and Chairman of the Board of Directors; and
perform such other duties and responsibilities as may be delegated to the Lead Independent Director by the Board of Directors from time to time.

20




The Board of Directors also has five standing committees: the Audit Committee, the Compensation Committee, the Executive Committee, the Finance and Pension Investment Committee, and the Nominating and Corporate Governance Committee. Each committee has a separate chairman and each of the Audit, Compensation and Nominating and Corporate Governance Committees are composed solely of independent directors.
Given our current circumstances, relative size and operating strategies, we believe having a combined Chairman of the Board of Directors and Chief Executive Officer, as well as having a Lead Independent Director and independent standing committees, is the most appropriate structure for us and our shareholders. We believe this structure demonstrates clear leadership to our employees, shareholders, and other interested parties and eliminates potential for redundancies and confusion. The Lead Independent Director protects the role of the independent directors by providing leadership to the independent directors and working closely with the Chief Executive Officer and Chairman of the Board of Directors.
As part of the Board of Directors' annual assessment process, the Board of Directors evaluates our board leadership structure to ensure that it remains appropriate for us. The Board of Directors recognizes that there may be circumstances in the future that would lead it to separate the roles of Chief Executive Officer and Chairman of the Board of Directors, but believes that the absence of a policy requiring either the separation or combination of the roles of Chairman and Chief Executive Officer provides the Board of Directors with the flexibility to determine the best leadership structure for us.
Board of Directors' Role in Risk Oversight
The Board of Directors is responsible for our risk oversight. Management is responsible for our risk management, including providing oversight and monitoring to ensure our policies are carried out and processes are executed in accordance with our performance goals and risk tolerances. In carrying out its risk oversight function, each of the five standing committees of the Board of Directors is responsible for risk oversight within their area of responsibility and regularly reports to the Board of Directors. In addition, management holds regular meetings in which they identify, discuss, and assess financial risk from current macro- economic, industry, and company-specific perspectives.

The Audit Committee is responsible for discussing with management, the independent registered public accounting firm and the internal auditors our policies and procedures with respect to risk assessment and risk management. As part of its regular reporting process, management reports and reviews with the Audit Committee our material risks, including (i) proposed risk factors and other public disclosures, and (ii) mitigation strategies and our internal controls over financial reporting. The Audit Committee also engages in regular periodic discussions with the Chief Financial Officer and other members of management regarding risks as appropriate.

The Finance and Pension Investment Committee assists the Board of Directors in control of our financial policies and resources and monitors our financial strategic direction. As part of its responsibilities, the Finance and Pension Investment Committee oversees our financial policies, including financial risk management, and reviews and approves significant financial policies and transactions. It also has oversight of the investments in our ERISA - regulated pension and savings plans.

In addition to the Audit Committee and Finance and Pension Investment Committee, each of the other committees of the Board of Directors considers risks within its area of responsibility and regularly reports to the Board of Directors on issues related to the Company’s risk profile. For example, the Compensation Committee considers succession planning and risks that may be a result of our executive compensation programs, and has oversight responsibility for the Company’s review of compensation policies and procedures to determine whether they present significant risks. In addition, the Nominating and Corporate Governance Committee considers risks related to corporate governance, environmental, and social responsibility issues, as well as succession planning risk regarding our Chief Executive Officer and the members of the Board of Directors.

We believe the current leadership structure of the Board of Directors supports the risk oversight functions described above by providing independent leadership at the committee level, with ultimate oversight by the full Board of Directors as led by the Chairman of the Board of Directors and Chief Executive Officer and the Lead Independent Director.



21




Compensation Risk Assessment
As part of its oversight of our executive compensation program, the Compensation Committee considers the impact of our executive compensation program, and the incentives created by the compensation awards that it administers, on our risk profile. The Compensation Committee has implemented compensation program design features to mitigate the risk that our compensation programs encourage misconduct or imprudent risk-taking. In addition, we review all of our compensation policies and procedures, including the incentives that they create and factors that may reduce the likelihood of excessive risk taking, to determine whether they present a significant risk to us. At the Compensation Committee's direction, our Senior Vice President and Chief Financial Officer and his staff, our Vice President, General Counsel, and Secretary, and a member of our internal audit team, conducted a risk review assessment of our compensation programs in fiscal year 2019. The Compensation Committee reviewed the findings of the assessment and concluded (i) that our compensation programs are designed with the appropriate balance of risk and reward in relation to our overall business strategy and (ii) that the balance of compensation elements discourages excessive risk taking. The Compensation Committee, therefore determined that the risks arising from our compensation policies and practices for employees are not reasonably likely to have a material adverse effect on the Company. The Compensation Committee also concluded that the performance measures and performance targets do not encourage excessive or unnecessary risk taking. In its discussions, the Compensation Committee considered the attributes of our programs, including:
the balance between annual and longer-term performance opportunities;
the balance between performance-based and non- performance based pay;
alignment of our programs with business strategies focused on long-term growth and sustained shareholder value, the performance goals established for senior management reflect the objectives set by the Compensation Committee to increase focus on the achievement of the Company's strategic plan;
placement of an appropriate portion of our executive pay “at risk” and dependent upon the achievement of specific corporate and individual performance goals that are objectively determined with verifiable results. These corporate goals have pre-established thoughtful threshold, target and maximum award limits;
the use of multiple performance metrics that are based on the general performance of the corporation and the use of economic profit as a risk adjusted metric;
the use of rolling three-year Performance Shares to lengthen the overall measurement period;
the Compensation Committee's ability to exercise negative discretion and to consider non-financial and other qualitative performance factors in determining actual compensation payouts;
stock ownership guidelines that are reasonable and align executives' short- and long-term interests with those of our shareholders;
the recoupment policy to authorize the potential recovery or adjustment of cash incentive awards and long-term equity awards paid to named executive officers and other recipients in the event there was a restatement of incorrect financial results and upon the occurrence of certain specified events; and
the policy prohibiting the use of hedging and derivatives trading by executives and directors.

22




Committees of the Board
Audit Committee
The responsibilities of the Audit Committee include the review of the scope and the results of the work of the independent registered public accounting firm and internal auditors, the review of the adequacy of internal accounting controls, and the selection, appointment, compensation, and oversight of our independent registered public accounting firm. The Audit Committee operates under a written charter last amended by the Board of Directors on April 20, 2009. The Audit Committee's charter is available under the “Corporate Governance” section of our Internet website at http://investor.universalcorp.com/corporate-governance.
The members of the Audit Committee are Messrs. Lawton (Chairman), L. Freeman, E. Moore, Sledd and Tullidge. The Board of Directors has determined that each of the Audit Committee members is independent as defined under the applicable independence standards set forth in regulations of the SEC and the NYSE listing standards. The Board of Directors has also determined that all of the Audit Committee members are financially literate as defined by the NYSE listing standards. Finally, in accordance with the applicable regulations of the SEC, the Board of Directors has further determined that the Audit Committee contains at least one “audit committee financial expert” as defined by such regulations. That person is Mr. Lawton, the Chairman of the Audit Committee. The fact that the Board of Directors did not identify additional Audit Committee members as “audit committee financial experts” does not in any way imply that other members do not meet that definition.
The Audit Committee met six times during fiscal year 2019. Additional information with respect to the Audit Committee is discussed below in the section entitled “Audit Information” on page 69 of this Proxy Statement.
Executive Committee
The Executive Committee has the authority to act for the Board of Directors on most matters during the intervals between Board of Directors meetings. The members of the Executive Committee are Messrs. G. Freeman (Chairman), L. Freeman, Johnson, Lawton and E. Moore. The Executive Committee met two times during fiscal year 2019, and took action in lieu of a meeting twice by unanimous consent during such period.
Compensation Committee
The current members of the Compensation Committee are Messrs. Johnson (Chairman), Mrs. Cantor, L. Freeman and Mr. Lawton. The Compensation Committee performs the responsibilities of the Board of Directors relating to compensation of our executives, including establishing and maintaining a competitive compensation program for our directors and executives in order to attract, retain and motivate key contributors to our success. The Compensation Committee's responsibilities include, among others, reviewing and setting or approving corporate goals and objectives relevant to compensation of the Chief Executive Officer and other executive officers, evaluating the performance of the Chief Executive Officer and our other executive officers in light of those goals and objectives, and determining and approving compensation levels for the Chief Executive Officer and our other executive officers based on this evaluation; making recommendations to the Board of Directors with respect to annual and long-term incentive compensation plans; evaluating the performance of, and determining the salaries, incentive compensation, and executive benefits for senior management; and administering our equity-based and other executive compensation plans.
On April 9, 2019, the Board of Directors approved changes to the Company’s Bylaws and to the charter of the formerly-named Executive Compensation, Nominating and Corporate Governance Committee. The purpose of the approved changes was, in part, to divide the Executive Compensation, Nominating and Corporate Governance Committee into two committees: the Compensation Committee and the Nominating and Corporate Governance Committee. The Board approved such changes in consideration of best practices with respect to corporate governance by creating a separate committee dedicated to corporate governance and director nominating responsibilities. Such changes also resulted in the Compensation Committee being dedicated to compensation matters. The Compensation Committee operates under the written charter amended and approved by the Board of Directors on April 9, 2019. The charter, as well as the Company’s amended Bylaws, is available under the “Corporate Governance” section of our Internet website at http://investor.universalcorp.com/corporate-governance.
The Chairman of the Compensation Committee works with certain members of management to establish the agenda for Compensation Committee meetings. Data and materials are prepared for review by the Compensation Committee using market data from both broad-based and targeted national and regional compensation surveys. Competitive industry analysis is enhanced through review of peer company proxy data, professional research consortiums, and nationally recognized compensation databases provided by the Compensation Committee's external compensation consultant.

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The Compensation Committee periodically meets with certain members of management in order to assess progress toward meeting long-term objectives approved by the Board of Directors. The Compensation Committee reviews the performance and compensation of the Chief Executive Officer with input from both the full Board of Directors and the Chief Executive Officer's self-evaluation. The Compensation Committee approves the compensation of the other executive officers, based upon the evaluation and recommendation of the Chief Executive Officer. Where it deems appropriate, the Compensation Committee engages its independent compensation consultant or other appropriate advisors to analyze compensation trends and competitiveness of pay packages and to support the Compensation Committee's duty to establish each of the executive officers' targeted overall compensation levels.
The Compensation Committee reports regularly to the Board of Directors on matters relating to the Compensation Committee's responsibilities. For additional information regarding the compensation-related activities of the Compensation Committee, see the sections entitled “Compensation Discussion and Analysis” and “Report of the Compensation Committee” beginning on pages 27 and 44 of this Proxy Statement, respectively.
The Board of Directors has determined that the members of the Compensation Committee are “non- employee directors” (within the meaning of Rule 16b-3 of the Exchange Act), “outside directors” (within the meaning of former Section 162(m) of the Internal Revenue Code) and “independent directors” (as defined under the applicable NYSE listing standards and our Corporate Governance Guidelines). In addition, no Compensation Committee member is a current or former employee of ours or any of our subsidiaries. While the Compensation Committee's charter does not specify qualifications required for members, Mr. Johnson has been a member of other public company boards of directors and is a former chief executive officer of public companies, Mr. L. Freeman has extensive experience as a former senior executive officer of a large international tobacco products manufacturer, Mrs. Cantor possesses extensive legal, investment, and financial skills as well as significant public company directorship experience, and Mr. Lawton has had significant experience as a senior executive of a public company. Prior to the amendment to its charter on April 9, 2019, the Compensation Committee met seven times during fiscal year 2019, and took action in lieu of a meeting once by unanimous consent during such period.
In performing its responsibilities with respect to executive compensation decisions, the Compensation Committee receives information and support from our Human Resources Department and a nationally-recognized executive compensation consultant. For fiscal year 2019, Willis Towers Watson Public Limited Company, whom we refer to as Willis Towers Watson, served as an independent, executive compensation consultant to the Compensation Committee and had aggregate fees for fiscal year 2019 of approximately $12,500 for these services. Management does not engage an outside compensation consultant and did not engage Willis Towers Watson to provide any other services of significance to the Company. Willis Towers Watson does provide consultancy services to the Company regarding its International Savings Plan. These additional consultancy services are managed by separate groups within Willis Towers Watson with no direct reporting responsibility to the executive compensation group and each of these consultancy groups have separate physical locations. In addition, Willis Towers Watson was engaged to perform these separate services after completion of a comprehensive bid process. For more information with respect to the Compensation Committee's compensation consultant, see “Compensation Discussion and Analysis” beginning on page 27 of this Proxy Statement.
Nominating and Corporate Governance Committee
As noted above, on April 9, 2019, the Board of Directors approved changes to the Company’s Bylaws and to the charter of the formerly-named Executive Compensation, Nominating and Corporate Governance Committee. The purpose of the approved changes was, in part, to divide the Executive Compensation, Nominating and Corporate Governance Committee into two committees: the Compensation Committee and the Nominating and Corporate Governance Committee. The Board approved such changes in consideration of best practices with respect to corporate governance by creating a separate committee dedicated to corporate governance and director nominating responsibilities. The Nominating and Corporate Governance Committee operates under the written charter approved by the Board of Directors on April 9, 2019. The charter, as well as the Company’s amended Bylaws, is available under the “Corporate Governance” section of our Internet website at http://investor.universalcorp.com/corporate-governance.
The Nominating and Corporate Governance Committee performs a two-fold function. First, the Nominating and Corporate Governance Committee is responsible, subject to approval of the Board of Directors, for determining and developing criteria for Board of Directors membership, for identifying specific individuals qualified to be members of the Board of Directors, and for making recommendations to the Board of Directors with respect to such nominations. Second, the Nominating and Corporate Governance Committee is responsible for developing and recommending to the Board of Directors a set of corporate governance principles applicable to the Company, overseeing the Company’s environmental and social responsibility and sustainability programs and practices, and overseeing the evaluation of the Board of Directors and its acting committees. The Nominating and Corporate Governance Committee monitors developments in, and makes recommendations to the Board of

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Directors concerning, corporate governance practices, including following regulatory and legislative developments and considers corporate governance best practices in performing its duties. The members of the Nominating and Corporate Governance Committee are Mrs. Cantor (Chairman) and Messrs. Johnson, Sledd and Tullidge.
The Nominating and Corporate Governance Committee employs several methods for identifying and evaluating director nominees. The Nominating and Corporate Governance Committee considers candidates for Board of Directors membership suggested by its members and by management, and will also consider candidates suggested by our shareholders. The Nominating and Corporate Governance Committee periodically assesses whether any vacancies on the Board of Directors are expected due to retirement or otherwise and in the event that vacancies are anticipated, the Nominating and Corporate Governance Committee considers possible director candidates. The Nominating and Corporate Governance Committee may also retain a third-party executive search firm to identify candidates upon request of the Nominating and Corporate Governance Committee from time-to-time based upon the director membership criteria described in the Corporate Governance Guidelines and the Nominating and Corporate Governance Committee’s own assessment of the perceived needs of the Board of Directors at that point in time. Shareholders entitled to vote for the election of directors may submit candidates for formal consideration by the Nominating and Corporate Governance Committee in connection with an Annual Meeting if we receive timely written notice, in proper form, for each such recommended director nominee. If the notice is not timely and in proper form, the nominee will not be considered by the Nominating and Corporate Governance Committee. To be timely for the 2020 Annual Meeting, the notice must be received within the time frame set forth in the section entitled “Proposals for 2020 Annual Meeting” on page 76 of this Proxy Statement. To be in proper form, the notice must include each nominee's written consent to be named as a nominee and to serve if elected, and information about the shareholder making the nomination and the person nominated for election. These requirements are more fully described in our Bylaws and Corporate Governance Guidelines.
The Nominating and Corporate Governance Committee evaluates all director candidates in accordance with the director membership criteria described in the Corporate Governance Guidelines. The Nominating and Corporate Governance Committee does not differentiate between Board of Directors candidates submitted by Board of Directors members or those submitted by shareholders with respect to evaluating candidates. All Board of Directors candidates are considered based upon various criteria, such as their broad-based business skills and experience, prominence and reputation in their profession, their global business and social perspective, concern for the long-term interests of the shareholders, knowledge of our industry or related industries, diversity, and personal and professional integrity, ethics, and judgment - all in the context of an assessment of the perceived needs of the Board of Directors at that point in time. Because the needs of the Board of Directors change from time to time, the Nominating and Corporate Governance Committee evaluates the totality of the merits of each prospective nominee that it considers and has not established specific minimum qualifications that must be met by potential new directors. The Board of Directors, however, believes that as a matter of policy there should be a substantial majority of independent directors on the Board of Directors.
It also is important to the Nominating and Corporate Governance Committee that the members of the Board of Directors work together in a cooperative fashion. When considering a director standing for re-election as a nominee, in addition to the attributes described above, the Nominating and Corporate Governance Committee also considers that individual's past contribution and future commitment to us. The Nominating and Corporate Governance Committee will also seek to ensure that the Board of Directors, and consequently the Audit Committee, have at least three independent members that satisfy the NYSE financial and accounting experience requirements and at least one member who qualifies as an audit committee financial expert.
After completing potential director nominees' evaluations, the Nominating and Corporate Governance Committee makes a recommendation to the full Board of Directors as to the persons who should be nominated by the Board of Directors, and the Board of Directors determines the nominees after considering the recommendation and report of the Nominating and Corporate Governance Committee. There is no difference in the manner by which the Nominating and Corporate Governance Committee evaluates prospective nominees for director based upon the source from which the individual was first identified.
Messrs. Johnson and Lawton were each recommended by the Nominating and Corporate Governance Committee for nomination for election at the Annual Meeting as directors to serve a three-year term until their respective successors are elected and qualified, or until their earlier resignation or removal. The Nominating and Corporate Governance Committee did not receive any Board of Director recommendations from any shareholder in connection with the Annual Meeting.

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Finance and Pension Investment Committee
On April 9, 2019, the Board of Directors approved changes to the Company’s Bylaws and to the charters of the formerly named Finance Committee and the Pension Investment Committee. The purpose of the approved changes was, in part, to combine the Finance Committee and the Pension Investment Committee into one committee: the Finance and Pension Investment Committee. The Board approved such changes in consideration of certain overlapping interests between the two former committees, as well as efficiencies with respect to the functions of the two separate committees. The Finance and Pension Investment Committee operates under the written charter approved by the Board of Directors on April 9, 2019. The charter, as well as the Company’s amended Bylaws, is available under the “Corporate Governance” section of our Internet website at http://investor.universalcorp.com/corporate-governance.
The Finance and Pension Investment Committee has the responsibility of establishing our financial policies and controlling our financial resources. In addition, it retains and monitors the performance of an investment manager and, with the assistance of the investment manager, establishes investment objectives and policies, and monitors the performance of investments of the retirement plans and other qualified employee benefit plans of Universal Leaf Tobacco Company, Incorporated, which we refer to as Universal Leaf. The members of the Finance and Pension Investment Committee are Mr. Sledd (Chairman), Mrs. Cantor, and Messrs. G. Freeman, E. Moore, and Tullidge. Prior to the creation of the combined Finance and Pension Investment Committee, the Finance Committee met three times during fiscal year 2019 and the Pension Investment Committee met four times during such period.
Annual Meeting Attendance
We expect and encourage each member of the Board of Directors to attend our Annual Meetings when it is reasonably practical for the director to do so. All of the directors attended the 2018 Annual Meeting.
Board's Role in Environmental, Social and Governance (ESG) Matters
Corporate responsibility is an important priority for the Board and the Company. We have a long history of strong commitment to being an ethical and responsible company acting with integrity and respect for each other, our communities and the environment. The Board of Directors considered such commitment when it approved the charter for the Nominating and Corporate Governance Committee on April 9, 2019. In the charter, the Board of Directors tasked the Nominating and Corporate Governance Committee with the responsibility for overseeing our environmental and social responsibility and sustainability programs and practices, including considering potential long- and short-term trends and impacts that environmental and social responsibility and sustainability issues may have related to Universal’s business.
The Nominating and Corporate Governance Committee is also responsible for overseeing the Company’s public reporting on environmental and social responsibility and sustainability programs and practices. The Company’s current programs and practices are comprehensively discussed in our “Practices” section and "Impact" section of our Internet website, and in our publicly-released 2018 Sustainability Review. The 2018 Sustainability Review is available under the “Practices - Social Responsibility” section of our Internet website at: http://www.universalcorp.com/Practices/SocialResponsibility. In addition, in December 2019 the Company will publicly release our inaugural Sustainability Report, which will include additional environmental and social responsibility and sustainability program detail as well as relevant performance metrics. Our Sustainability Report will be made available on our Internet website.

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COMPENSATION DISCUSSION AND ANALYSIS
Fiscal Year 2019 Compensation Discussion and Analysis
This Compensation Discussion and Analysis and the executive compensation tables that follow describe the compensation of the Company’s named executive officers:
George C. Freeman, III, Chairman, President and Chief Executive Officer;
Airton L. Hentschke, Senior Vice President and Chief Operating Officer;
Johan C. Kroner, Senior Vice President and Chief Financial Officer (Mr. Kroner was elected Senior Vice President and Chief Financial Officer effective September 1, 2018);
David C. Moore, former Senior Vice President and Chief Financial Officer (as of August 31, 2018, Mr. Moore was no longer serving as an executive officer of the Company);
Preston D. Wigner, Vice President, General Counsel and Secretary; and
Theodore G. Broome, Executive Vice President and Sales Director, Universal Leaf Tobacco Co., Inc.
We refer to these six executives as our named executive officers. Information about named executive officers’ salaries and any changes in fiscal year 2019 can be found under “Base Salaries” on page 37. Information about annual cash incentive targets and awards appears under “Annual Cash Incentives Awards” beginning on page 38. Information about long-term targets and awards appears under “Long-Term Equity Participation” beginning on page 40.
Fiscal Year 2019 Chief Financial Officer Change
In February 2018, we announced that David C. Moore would retire as Senior Vice President and Chief Financial Officer effective August 31, 2018 and that the Board of Directors had named Johan C. Kroner, who was serving as Senior Vice President, to succeed Mr. D. Moore as Chief Financial Officer as of September 1, 2018. Because of this change to the Company’s Chief Financial Officer position, this Compensation Discussion and Analysis and the executive compensation tables and disclosure that follow include compensation information for members of the executive leadership team who were serving as of March 31, 2019, including Mr. Kroner who became Chief Financial Officer effective September 1, 2018, and also for Mr. D. Moore, who served as Chief Financial Officer for part of the fiscal year.

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Executive Summary
Guiding Philosophy
Universal Corporation is the leading global leaf tobacco supplier. The largest portion of the Company's business involves procuring and processing leaf tobacco for manufacturers of consumer tobacco products throughout the world. As such, our business is subject to risks, including changes in general economic, political, market, weather conditions, government regulation, and fluctuations in foreign exchange rates. Our executive compensation program, therefore, reflects a strong tie of pay to performance in order to link the interests of executive officers to the interests of shareholders and promote the creation of long-term shareholder value.
The goal of our executive compensation and benefits program is to attract, motivate, reward, and retain the management talent required to achieve our business objectives, at compensation levels that are fair, equitable and competitive with those of comparable companies. This goal is furthered by the Compensation Committee's policy of linking compensation to individual and corporate performance and by encouraging significant stock ownership by senior management in order to support our business strategy and align the financial interests of management with those of the shareholders.
The following objectives serve as guiding principles for all compensation decisions:
compensation should be set based on the responsibilities, skills, experience and achievements of each executive officer, taking into account competitive market rates;
compensation should be linked to individual and corporate performance by aligning our executive compensation program to company-wide performance, which we define in terms of economic performance and increases in shareholder value;
there should be an appropriate mix and weighting among base salary, cash incentives and equity awards, such that an adequate amount of each executive officer's total compensation is performance-based or “at risk.” Further, as an executive's responsibilities increase, the portion of “at risk” compensation for the executive should increase as a percentage of total compensation;
compensation should avoid any arrangements that pay for failure;
compensation programs should be designed to provide appropriate performance incentives without encouraging executives to take excessive risks in managing the business and which emphasize our commitment to our core values;
strong emphasis should be placed on equity-based compensation and equity ownership in order to align the financial interests of senior management with those of the shareholders and to ensure the proper focus on long-term business strategies; and
compensation goals and objectives should be transparent and easy to communicate, both internally and externally. Shareholders should be supplied with clear, comprehensive compensation disclosure.
Company Performance
Fiscal year 2019 was another strong year for Universal, as we increased tobacco volumes handled, continued to add additional business with our customers by expanding the services we provide, and continued to improve market share. Consolidated revenues increased by $193.2 million (9%) over the prior fiscal year, to $2.2 billion, on higher sales and processing volumes, which benefited from the recovery of African burley production, strong carryover shipments in the first half of the year, and robust demand for cigar wrapper tobacco. Net income for the fiscal year ended March 31, 2019, was $104.1 million, or $4.11 per diluted share, compared with $105.7 million, or $4.14 per diluted share, for the prior fiscal year. The results for the fiscal year ended March 31, 2019 included restructuring and impairment costs of $20.3 million, as well as a $7.8 million reduction in income tax expense from reversing a portion of a liability previously recorded for dividend withholding taxes on the cumulative retained earnings of a foreign subsidiary. The results for the fiscal year ended March 31, 2018 included a one-time reduction in income tax expense of $4.5 million from the enactment of major changes to U.S. corporate income tax law in December 2017. These non-recurring items reduced diluted earnings per share by $0.34 and increased diluted earnings per share by $0.18 for the fiscal years ended March 31, 2019 and 2018, respectively. Excluding the non-recurring items for both years, net income increased by $11.7 million and diluted earnings per share increased by $0.49 for fiscal year 2019 compared to fiscal year 2018. Operating income for the fiscal year ended March 31, 2019, which included the $20.3 million of non-recurring restructuring and impairment costs noted above, was $161.2 million, a decrease of $9.7 million compared to the prior fiscal year. Segment operating income, which excludes the restructuring and impairment costs, was $186.8 million for the fiscal year ended March 31, 2019, an increase of $6.8 million from the prior fiscal year.

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The following charts show a five-year history of our diluted earnings per share and our operating income:
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=3 http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=17
During fiscal year 2019, we generated $164.5 million in net cash flows from our operations, returned $71.3 million to shareholders through dividends and common share repurchases, and continued to maintain our strong balance sheet.
Over the last three fiscal years, we have strengthened our balance sheet by generating almost $500 million in net cash flow from operations, returning over $380 million to shareholders through a combination of dividends and share repurchases while maintaining net debt at the end of the fiscal year below $200 million.
Net debt as a percentage of total capitalization was approximately 10% at March 31, 2019, down from 12% at March 31, 2018. Over the last five fiscal years, we have maintained our net debt as a percentage of total capitalization at a relatively low level for the Company.
The following charts show a five-year history of our net cash flow from operations, our funds returned to shareholders, and our net debt as a percentage of total capitalization.
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=15 http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=8    
    http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=16              
In May 2018, we announced an enhanced capital allocation strategy that included a 36% increase in the dividend, raising our annual per share dividend to $3.00. In May 2019, we approved our 49th consecutive annual dividend increase, increasing our annual Common Stock per share dividend to $3.04.
Based on the closing price of $57.63 for our Common Stock, as quoted on the NYSE on March 29, 2019, the last trading day of fiscal year 2019, our Common Stock increased approximately 3.1% in value over the last five fiscal years compared to the market closing price of $55.89 at March 31, 2014.

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The following charts show a five-year history of our dividends declared per share of Common Stock and the market price of our Common Stock:
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=5 http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=14
We continued to advance our goal of providing compliant leaf produced in a sustainable and competitive manner for our customers, and we maintained our position as the leading global leaf tobacco supplier.
We believe our compensation philosophy is appropriate and aligned with the interests of our shareholders, as demonstrated by our Common Stock performance. The following performance graph compares the cumulative total shareholder return on our Common Stock for the last three fiscal years with the cumulative total return for the same period of the Standard & Poor's Smallcap 600 Index and the peer group index. The peer group represents Pyxus International, Inc. (formerly named Alliance One International, Inc.). The graph assumes that $100 was invested in Universal Corporation Common Stock at the end of the Company's 2016 fiscal year, and in each of the comparative indices, in each case with dividends reinvested.
        http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=22




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Executive Compensation
The Compensation Committee, Board of Directors and management of Universal take pride in our performance-based compensation program and remain committed to maintaining the integrity of the program in good times and bad. Our executive compensation program primarily consists of moderate base salary and variable at-risk annual cash and equity incentive awards that are benchmarked to the 50th percentile of the peer group market. While the Compensation Committee utilizes market data and other statistical information on executive compensation, it is not over-reliant on such data. The Compensation Committee recognizes its responsibility to avoid the tendency to permit “benchmarking” to be a contributor to escalating executive compensation. Over the last five years, the base salary of our Chief Executive Officer has increased by an average of only 3% per year. For fiscal year 2020, increases in the total direct opportunity compensation of our Chief Executive Officer and our named executive officers were 3%.
The following charts show the relative components of total compensation for our Chief Executive Officer and our other named executive officers in terms of Base Salary, Short-Term Performance Pay, and Long-Term Performance Pay:
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=2 http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13020628&doc=7
(1)
Base Salary is the actual amount paid in fiscal year 2019. Short-Term Performance Pay is the actual amount earned in fiscal year 2019 based on performance. Long-Term Performance Pay is the value on the grant date of Restricted Stock Units and Performance Shares awards granted in fiscal year 2019. See Summary Compensation Table for the amounts of all elements of reportable compensation described in this section.
Our annual cash incentive payments under the Annual Incentive Plan (i.e., our Short-Term Performance Pay) are based on the Company's achievement against pre-established performance goals for adjusted diluted earnings per share and economic profit. In fiscal year 2019, our reported performance was better than expected and we exceeded our performance goals in the aggregate. That performance corresponded to a weighted payout of 120.10% of an executive's individual target cash bonus opportunity amount based on the pre-approved percent-of-target performance tables. The weighted payout is higher than last year's payout of 110.55% due to improved generation of economic profit and in spite of an increase in the performance target for adjusted earnings per share.
No one form of compensation will perfectly align the financial interests of senior management with those of the shareholders, but we believe our equity award program plays a significant role in striving to achieve the appropriate balance. Stock ownership, supported by our equity award program (i.e., our Long-Term Performance Pay), is the most effective way to ensure that management is properly motivated to create long-term shareholder value. To that end, we maintain robust stock ownership guidelines applicable to all named executive officers and other executive officers. As of the record date, July 19, 2019, all of our current named executive officers except Mr. Kroner, who became a named executive officer as of September 1, 2018, are in excess of their ownership targets and collectively hold beneficial ownership of almost 1.7% of our Common Stock. Our named executive officers, excluding Mr. D. Moore who retired August 31, 2018, in the aggregate, beneficially own approximately $25.4 million of Common Stock equating to approximately nine times their combined base salaries. As significant long-term shareholders, our executives are exposed to the same risks that our investors are.

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We do not use, offer, or provide our executives with many of the types of perquisites that other companies offer their executives, such as:
ž personal use of corporate aircraft;
ž company cars or vehicle allowances;
ž    membership dues in social organizations;
ž employment, severance or retention agreements; or
ž    excise tax gross-ups;
ž other tax reimbursements.
ž any other tax gross-ups;
 
We currently maintain only two Change of Control Agreements with our named executive officers, each of which contains a “double trigger” as well as non-competition and non-solicitation clauses, but do not contain any obligations to gross-up severance payments. We have a recoupment or “clawback” provision applicable to all performance-based compensation, and we have adopted a policy prohibiting hedging and derivatives trading in our Common Stock.
At the 2018 Annual Meeting of Shareholders, approximately 93.5% of the votes cast supported our executive compensation policies and procedures for our named executive officers. Given the high level of support from our shareholders, as demonstrated by the results of their vote, we did not make any significant changes in our policies or programs in response to their vote.
Compensation Committee Activities in Fiscal Year 2019
In fiscal year 2019, the Compensation Committee reviewed the existing mix, form and calibration of the executive compensation programs and confirmed its commitment to the principles and structure it followed during fiscal year 2018. Some of the significant actions the Compensation Committee undertook in fiscal year 2019 included:
Enhanced the process of evaluating Board of Directors' skills and experience in order to assess needs in connection with the selection and nomination of members of the Board of Directors;
Conducted a review and assessment of committee structure and recommended changes to the Board of Directors;
Reviewed the Company's Succession Planning and Leadership Development Program to ensure continuity and development of Company leadership;
Evaluated the impact on the Company's compensation program of the enactment of the Tax Cuts and Jobs Act, including the changes in Section 162(m) of the Internal Revenue Code;
Reaffirmed the Compensation Committee's objective of setting total direct opportunity compensation for our executives at levels competitive with the market median for executives in comparable positions at companies of comparable size, complexity, and operational characteristics;
Evaluated the mix of pay to ensure that the appropriate balance among base salary, annual cash incentives, and long-term performance-based award opportunities is maintained;
Evaluated alternative performance metrics and reaffirmed the use of adjusted earnings per share as a performance goal in the annual incentive and long-term performance award program;
Reviewed the performance targets and calibration ranges for economic profit and adjusted earnings per share to reflect current and anticipated business conditions and to ensure adequate performance stretch in the annual incentive plan and performance-based stock unit goals;
Reaffirmed that 5-year restricted stock units and 3-year performance-based stock units, which we refer to as Performance Shares, are appropriate forms of long-term incentive awards;
Reaffirmed the stock ownership guidelines for all of our directors, named executive officers, and other executive officers and directors of our operating subsidiary, and monitored compliance with the guidelines;
Conducted a review and assessment of potential risks arising from our compensation policies and programs;
Reaffirmed the “clawback” provision in our performance-based awards; and
Reaffirmed a commitment to provide very limited perquisites to executives.

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Retaining Experts to Aid in Discharge of Duties
The Compensation Committee has sole authority to retain experts, consultants and other advisors to aid in the discharge of its duties. The Compensation Committee meets privately with its independent outside advisor from time to time without management present to discuss developments and best practices in executive compensation matters. All work completed by the outside advisor, whether for the Compensation Committee or management, is subject to the approval of the Compensation Committee. The Compensation Committee does not delegate authority to its outside advisor. In fiscal year 2019, Willis Towers Watson was again engaged by the Company to provide consulting services for the Company's health and welfare benefit plans and International Savings Plan at an estimated annual cost of approximately $154,345. This total includes direct fee payments by the Company of approximately $101,000 and commissions of approximately $53,300 that were paid directly to Willis Towers Watson by the carrier. The Compensation Committee assessed the independence of Willis Towers Watson pursuant to Item 407(e)(3)(iv) of Regulation S-K and concluded that no conflict of interest exists that would prohibit Willis Towers Watson from independently representing the Compensation Committee.
Peer Group Analysis
On an annual basis, the Compensation Committee determines the total compensation target for each of our executive officers. The Compensation Committee then sets the mix of the different components of compensation desired to achieve the total compensation target. From time to time, the Compensation Committee requests that its outside advisor benchmark the component totals to confirm that such amounts are within reason of our peer group. The Compensation Committee targets the 50th percentile in measuring competitiveness.
During fiscal year 2017, the Compensation Committee requested that Willis Towers Watson review and, if necessary, update our then-current peer group list. Willis Towers Watson evaluated the peer group list to discover relevant comparator companies not currently within our peer group and potentially to identify companies currently included in our peer group that may no longer be considered comparable. Characteristics considered in this evaluation included industry relevance, similarity of business operations, markets, relevant size, and market capitalization, as well as business operations conducted in similar environments. Willis Towers Watson did identify changes to the peer group list that would better align that list with us in terms of the overall characteristics considered. Although the leaf tobacco industry is highly competitive, Universal and Pyxus International, Inc., formerly Alliance One International, Inc., are the only global, independent, publicly traded competitors. We, therefore, lack true “peers” within our own industry. The Compensation Committee reviewed the proposed list with Willis Towers Watson and reaffirmed the use of the new peer group list beginning with fiscal year 2018. The peer group list consists of the following companies:
Pyxus International, Inc.
Fresh Del Monte Produce Inc.
Seaboard Corporation
 
 
 
The Andersons, Inc.
Ingredion Incorporated
Seneca Foods Corporation
 
 
 
Cal-Maine Foods, Inc.
Lancaster Colony Corporation
SunOpta Inc.
 
 
 
Darling Ingredients, Inc.
McCormick & Company, Inc.
TreeHouse Foods, Inc.
 
 
 
Flowers Foods, Inc.
Sanderson Farms, Inc.
 
Stock Ownership Guidelines
The Compensation Committee believes that it is important to align the interests of members of senior management with those of our shareholders. While the Compensation Committee considers this principle when determining the appropriate mix of base salary, annual cash incentive awards, and long-term equity awards, the Compensation Committee also established stock ownership guidelines that encourage the accumulation and retention of Common Stock.
Our current stock ownership guidelines are expressed as a multiple of base salary, ranging from 2.5 to 6.0 times base salary. The Compensation Committee believes this methodology provides for greater individualization of ownership guidelines. The guidelines work in concert with the long-term incentive plan and are intended to foster strong executive ownership of our Common Stock. The Compensation Committee believes that it is important to achieve and maintain these guideline amounts as minimum target levels of ownership. The Compensation Committee reviews compliance with our stock ownership guidelines on an annual basis.

33




Under our stock ownership guidelines, executives must comply within five years from the date of the executive's appointment to a qualifying position and certain executives are provided additional time when they receive promotions that result in higher ownership targets. The guidelines apply to our named executive officers in the following manner:
 
Ownership Guideline Target
George C. Freeman, III
6.0 times base salary
Airton L. Hentschke
5.0 times base salary
Johan C. Kroner
5.0 times base salary
David C. Moore1
-
Preston D. Wigner
4.0 times base salary
Theodore G. Broome
3.5 times base salary
(1) The guidelines no longer apply to Mr. D. Moore due to his retirement as of August 31, 2018.
Only shares beneficially owned (as defined by the SEC's rules and regulations) by our executive officers, excluding such executives' Performance Shares, but including the executive officers' restricted stock unit awards (and corresponding dividend equivalent rights) are counted in determining compliance with the guidelines. The table below sets forth each of our named executive officers' stock holdings and value on the record date, July 19, 2019, and the ownership multiple as it pertains to the ownership guidelines.
 
 
Shares held
as of July 19, 2019
 
Value of Shares held
as of July 19, 2019(1)
 
Ownership Guideline as a Multiple of Base Salary
 
Actual Ownership as a Multiple of Base Salary
 
 
(#)
 
($)
 
 
 
 
George C. Freeman, III
 
263,238

 
15,936,429

 
6.0
 
16.9
Airton L. Hentschke
 
67,684

 
4,097,589

 
5.0
 
6.9
Johan C. Kroner2
 
8,854

 
536,021

 
5.0
 
1.2
David C. Moore2
 

 

 
 
Preston D. Wigner
 
45,754

 
2,769,947

 
4.0
 
6.6
Theodore G. Broome
 
34,127

 
2,066,049

 
3.5
 
5.2
(1) 
Based on $60.54 per share, the closing price of a share of our Common Stock as quoted on the NYSE on the record date, July 19, 2019.
(2) 
Mr. Kroner was promoted to Senior Vice President and Chief Financial Officer as of September 1, 2018. Mr. D. Moore retired as of August 31, 2018 and the guidelines no longer apply.
All of our named executive officers exceed their ownership targets or are in compliance with our stock ownership guidelines at the present time. As of the record date, July 19, 2019, our named executive officers own approximately 1.7% of the outstanding Common Stock. We believe significant stock ownership is the most important factor in aligning the interests of management with those of our shareholders.
In addition, the Compensation Committee maintains stock ownership guidelines applicable to the non-employee directors. Information with respect to the non-employee directors' stock ownership guidelines is set forth in “Non-Employee Director Stock Ownership Guidelines” on page 66 of this Proxy Statement.
Limitations on Deductibility of Compensation
Section 162(m) of the Internal Revenue Code (the “Code”) generally precludes a tax deduction by any publicly-held company for compensation paid to any “covered employee” to the extent the compensation paid to such covered employee exceeds $1 million during any taxable year of the Company. The Tax Cuts and Jobs Act was enacted in the United States in December 2017 and included changes to Section 162(m) of the Code effective in 2018. Prior to 2018, “covered employees” included the Chief Executive Officer of the Company and the three other highest paid officers of the Company (other than the Chief Financial Officer). For 2018 and later years, “covered employees” will include the Chief Executive Officer of the Company, the Chief Financial Officer of the Company, the three highest paid officers of the Company (other than the Chief Executive Officer and the Chief Financial Officer) and any employee who qualified as a “covered person” for any tax year beginning after 2017. For years

34




beginning prior to January 1, 2018, the $1 million deduction limit did not apply to “qualified performance-based compensation” that is based on the attainment of pre-established, objective performance goals established under a stockholder-approved plan. Effective for the years beginning on or after January 1, 2018, there is no exception for “qualified performance-based compensation” from the Section 162(m) limitation. A transition rule however provides that the “qualified performance-based compensation” exemption will continue to apply to awards that are made on or before October 2, 2017, pursuant to a legally binding contract in effect at such time that is not materially modified thereafter. A number of requirements must be met under Section 162(m) of the Code in order for particular compensation to so qualify for the exception such that there can be no assurance that “qualified performance-based compensation" will be fully deductible under all circumstances. We believe that it is important to preserve flexibility in administering compensation programs to promote various corporate goals. Accordingly, we have not adopted a policy that all compensation must qualify as deductible under Section 162(m) of the Internal Revenue Code. Amounts paid under our compensation programs may not be deductible as the result of Section 162(m). While our policy is generally to preserve corporate tax deductions, the Compensation Committee may conclude that certain compensation arrangements are in our best interests and the best interests of our shareholders despite the fact that such arrangements might not, in whole or part, qualify for tax deductibility. We intend to design our executive compensation arrangements to be consistent with our best interests and the interests of our shareholders. To the extent we determine it to be consistent with our best interests and the interests of our shareholders, we intend to preserve, to the extent practicable, the applicability of the transition rule to awards that were granted on or before October 2, 2017. However, there is no guarantee that such transition status can or will be applicable.
Clawback in the Event of Restatements or Ethical Misconduct
All of our cash incentive awards, as well as performance-based equity awards are subject to a recoupment or "clawback" provision. The purpose of the clawback provision is to authorize the potential recovery or adjustment of awards when the performance measures on which such awards were based are restated in a manner that would have decreased the amount of the award had the restated performance measure been used to calculate the original award, or when the award is otherwise deemed inappropriate by the Compensation Committee due to the occurrence of certain stated events. In the event of a material restatement of our financial statements, we may seek recoupment of incentive compensation and equity awards paid under our incentive plans for all relevant performance periods. The clawback provision applied to all cash incentive and equity awards made during fiscal year 2019.
Management has also implemented additional effective controls to minimize potential unintended or willful reporting errors. In addition, the Compensation Committee also has the discretion to reduce or eliminate an executive's incentive compensation and equity awards or seek a recoupment of the same, in the event of ethical misconduct. The Compensation Committee reviews cash incentive payments, performance-based equity awards, and other performance-based awards that are made to all current and former officers on the basis of having met or exceeded performance goals. Appropriate action will be taken after considering all factors and circumstances.
In addition to the clawback provision, our Benefit Restoration Plan includes a forfeiture provision whereby a participant will forfeit all rights in and to any benefits payable under the Benefit Restoration Plan, if we terminate the participant's employment as a result of a participant's fraud, dishonesty, or embezzlement where the participant has been materially, unjustly enriched by such conduct.
2017 Stock Incentive Plan
The Universal Corporation 2017 Stock Incentive Plan was approved by the Compensation Committee and subsequently our shareholders at our 2017 Annual Meeting. This plan replaced our 2007 Stock Incentive Plan. The 2017 Stock Incentive Plan serves as the core program for the performance-based compensation components of our named executive officers' total compensation. The 2017 Stock Incentive Plan defines the incentive arrangements for eligible participants and:
authorizes the granting of annual cash incentive awards, stock options, SARs, Performance Shares, restricted stock, restricted stock units and other incentive awards, all of which may be made subject to the attainment of performance goals approved by the Compensation Committee;
provides for the enumeration of the business criteria on which an individual's performance goals are to be based;
establishes the maximum share grants or awards (or, in the case of incentive awards, the maximum compensation) that can be paid to a participant in the 2017 Stock Incentive Plan; and
prohibits repricing or the exchange of options or stock appreciation rights without the approval of shareholders.
The Compensation Committee shall continue to administer awards previously granted under the 2007 Stock Incentive Plan.

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Components of Executive Compensation
The Compensation Committee targets a specific mix of compensation components, with the intent to make each component of total direct opportunity compensation competitive with other companies of similar size and operational characteristics while also linking compensation to individual and corporate performance and encouraging stock ownership by senior management. The Compensation Committee believes that the various elements of our compensation program effectively achieve the objective of aligning compensation with performance measures that are directly related to our financial goals and creation of shareholder value, without encouraging executives to take unnecessary and excessive risks.
The major components of our executive compensation program are the following:
Total Direct Opportunity Compensation
Base salary. Base salary is intended to reflect the market value of an executive officer's role and responsibility, with differentiation for individual capabilities and experience in their positions.
Annual cash incentive awards. Annual cash incentive awards in the form of market competitive, performance-based, cash bonuses are designed to focus our executives on pre-set goals each year and to drive profitability, growth, and shareholder value.
Long-term equity participation. Long-term equity participation is designed to recognize executives for their contributions to the Company, to highlight the strategic importance of each executive's role, to promote retention, and to align the interests of management and shareholders in long-term growth and stock performance by rewarding executives for the creation of shareholder value.
Total Indirect Compensation
Other benefits. We believe that providing competitive health and welfare benefits at a reasonable cost is an important part of any employee’s compensation package and promotes employee health. Our named executive officers participate in the same health and welfare benefits as our salaried employees. These health and welfare benefits for fiscal year 2019 included health, dental, vision, life insurance, accidental death and dismemberment insurance, and disability benefits. These benefits, including plan design and cost, are analyzed annually.
Retirement and other post-retirement compensation. Please see "Retirement and Post-Termination Compensation" on page 43 of this Proxy Statement.
In determining executive compensation, the Compensation Committee reviews all components of the Chief Executive Officer's and each other named executive officer's total compensation, including retirement benefits and the costs of all perquisites received to ensure such compensation meets the goals of the program. As a part of this review, the Compensation Committee considers corporate performance information, compensation survey data, the advice of its independent advisor, and the recommendations of management. The Compensation Committee also takes into consideration individual and overall company operating performance to ensure executive compensation reflects past performance as well as future potential and adequately differentiates between employees, based on the scope and complexity of the employee's job position, market comparisons, individual performance and experience, and our ability to pay. The Chief Executive Officer's performance is reviewed annually by the Compensation Committee prior to considering changes in compensation. The Chief Executive Officer's performance is evaluated in light of company performance, as described in greater detail below, and non-financial goals and strategic objectives selected by the Compensation Committee. Based on its review, the Compensation Committee believes total compensation for each of the named executive officers is reasonable and not excessive.

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In addition, the Compensation Committee evaluates the amount of compensation apportioned to base salary, annual cash incentive awards, and long-term equity participation, which we refer to as total direct opportunity compensation. The Compensation Committee sets target levels for each component of total direct opportunity compensation based on its desire to link compensation to individual and corporate performance and to ensure that a sufficient amount of compensation is performance-based or “at risk." The Compensation Committee set the following target percentages for the components of our named executive officers' total direct opportunity compensation for fiscal year 2020:
 
 
Base
Salary
 
Target Cash Incentive
Award
 
Target Long-Term
Equity Award
 
Target Total
George C. Freeman, III
 
25.0
%
 
25.0
%
 
50.0
%
 
100
%
Airton L. Hentschke
 
30.0
%
 
25.0
%
 
45.0
%
 
100
%
Johan C. Kroner(1)
 
37.5
%
 
25.0
%
 
37.5
%
 
100
%
David C. Moore(1)
 
30.0
%
 
25.0
%
 
45.0
%
 
100
%
Preston D. Wigner
 
37.5
%
 
25.0
%
 
37.5
%
 
100
%
Theodore G. Broome
 
37.5
%
 
27.5
%
 
35.0
%
 
100
%
(1) 
Mr. Kroner was appointed Senior Vice President and Chief Financial Officer effective September 1, 2018, and the table above reflects the components of Mr. Kroner’s total direct opportunity compensation in connection with his appointment. Mr. D. Moore retired as Chief Financial Officer on August 31, 2018.
1.
Base Salaries
The Compensation Committee approved the following base salaries for fiscal years 2018, 2019 and 2020 for our named executive officers, which became effective April 1, 2017, 2018 and 2019, respectively:
 
 
Fiscal Year
2018
 
Fiscal Year
2019
 
Percentage
Increase
 
Fiscal Year
2020
 
Percentage
Increase
 
 
($)
 
($)
 
(%)
 
($)
 
(%)
George C. Freeman, III
 
900,000

 
918,000

 
2.00
 
945,500

 
3.00
Airton L. Hentschke
 
568,900

 
580,300

 
2.00
 
597,700

 
3.00
Johan C. Kroner(1)
 

 
450,000

 
 
463,500

 
3.00
David C. Moore(1)
 
450,900

 
459,900

 
2.00
 

 
Preston D. Wigner
 
398,300

 
406,300

 
2.00
 
418,500

 
3.00
Theodore G. Broome
 
373,900

 
388,900

 
4.00
 
400,600

 
3.00
(1) Mr. Kroner was promoted to Senior Vice President and Chief Financial Officer effective September 1, 2018 at a base salary of $450,000. Mr. D. Moore retired as of August 31, 2018.
For fiscal years 2018, 2019 and 2020, the Compensation Committee evaluated executive compensation based on a periodic assessment conducted by Willis Towers Watson of the competitiveness of the executives' salary with salaries of executives in our peer group. We do not benchmark every year. Fiscal years 2019 and 2020 base salaries were determined in accordance with the responsibilities, skills and experience of each executive, personal performance of the executive in light of individual levels of responsibility and the competitiveness of the executive's salary with the salaries of executives in our peer group. While the Compensation Committee considered each of these factors in their totality, the Compensation Committee did not assign a specific value to each factor. For purposes of assessing the competitiveness of salaries, the Compensation Committee reviewed compensation data for our peer group described above from its independent outside consultant to determine ranges of total compensation and the individual components of such compensation. While the Compensation Committee considered many factors including the advice of senior management, the Committee felt it was prudent to increase base salaries of named executive officers for fiscal year 2019 by 2.0% and 3.0% for fiscal year 2020. Mr. Broome received a slightly higher increase for fiscal year 2019 due to changing responsibilities. Mr. Kroner was promoted to Senior Vice President and Chief Financial Officer effective September 1, 2018 upon the retirement of Mr. D. Moore. The Compensation Committee evaluated the appropriate compensation level for Mr. Kroner, who was new to the role, with the assistance of Willis Towers Watson, and in accordance with the values noted above and assessed his compensation in accordance with our executive peer group. Based upon these factors, the Compensation Committee approved a base salary of $450,000 for Mr. Kroner effective as of September 1, 2018. Mr. D. Moore retired as of August 31, 2018.

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As part of the compensation setting process for fiscal years 2019 and 2020, the Compensation Committee met periodically with Mr. G. Freeman, our Chairman, President, and Chief Executive Officer and reviewed his performance and the Company's performance. The Compensation Committee also evaluated Mr. G. Freeman's compensation level, considering the average base salaries of the chief executive officers at the companies included in the peer group approved for use beginning with fiscal year 2018. The Compensation Committee believed the new base amount was appropriate and not excessive when viewed in context with chief executive officer compensation for the peer group. The Compensation Committee also reviewed a variety of compensation surveys and published statistical reports. The Committee also considered affordability within the Company's business plans. After consultation with Willis Towers Watson, as well as management, Mr. G. Freeman's total direct opportunity compensation was increased for fiscal year 2019 by 2.0%, or $72,000. This total increase was apportioned $18,000 to base salary, $18,000 to the target annual cash incentive award and $36,000 to the target annual long-term incentive award. Mr. G. Freeman's total direct opportunity compensation was increased for fiscal year 2020 by 3% or $110,000. This total increase was apportioned $27,500 to base salary, $27,500 to the target annual cash incentive award, and $55,000 to the target annual long term incentive award.
2.
Annual Cash Incentives Awards
The Annual Incentive Plan provides that participants in the plan include persons who are executive officers of the Company or any Subsidiary (as defined in the Annual Incentive Plan) for purposes of the Exchange Act, selected from time to time by the Compensation Committee to participate in the Annual Incentive Plan. These executive officers, which include our named executive officers, may receive annual cash incentive awards that vary from year to year based upon corporate and individual performance. We believe annual cash incentive awards drive our key employees to strive to maximize shareholder value and provide a means for recognizing individual contribution to our overall results. The cash incentive awards earned for fiscal year 2019 by our named executive officers were approved by the Compensation Committee on May 23, 2019, and are set forth in Column (g), “Non-Equity Incentive Plan Compensation”, in the “Summary Compensation Table” on page 45 of this Proxy Statement.
Annual cash incentive payments under the Annual Incentive Plan are paid based on the Company's achievements against pre-established performance metrics as set by the Compensation Committee. The annual cash incentive awards to our named executive officers in fiscal year 2019 were based 50% on the generation of economic profit and 50% on the generation of adjusted earnings per share. We use economic profit and adjusted earnings per share, as these performance measures strongly encourage capital discipline and better investment decisions and lead to enhanced cash flow. The Compensation Committee also believes that these measures are representative of our overall performance, and they provide transparency to investors and enable period-to-period comparability of financial performance. For purposes of the Annual Incentive Plan, we define "economic profit" as consolidated earnings before interest and taxes after certain adjustments, minus a capital charge equal to our weighted average cost of capital times average funds employed, and we define “adjusted earnings per share” as the fully-diluted earnings per share of Common Stock, adjusted to exclude extraordinary gains and losses, restructuring and impairment, and annual cash incentive award accruals under the Annual Incentive Plan. Economic profit and adjusted earnings per share should not be considered as alternatives to net income or earnings per share determined in accordance with accounting principles generally accepted in the United States.
During fiscal year 2019, the Compensation Committee considered alternative performance metrics and reaffirmed the use of adjusted earnings per share as a performance goal in both the annual incentive and long-term performance award program because adjusted earnings per share is an important driver of shareholder value. The Compensation Committee recognizes that the short and long-term incentive arrangements are based on similar metrics, but it considers profitability as our key driver of financial health and performance. The Company does not provide forward earnings guidance and is not required to do so. As such, we do not disclose performance targets applicable to our annual incentive plan or our performance shares until after they are earned. We also believe that such disclosure would result in competitive harm to the Company. Our business is not capital intensive and we believe that adequate free cash flow is generated at acceptable levels of profitability.
The executive officers who participate in the Annual Incentive Plan are eligible to receive an annual cash incentive award equal to a percentage of their base salary in the event certain threshold levels are met for economic profit and adjusted earnings per share. The following table sets forth the threshold, target and maximum levels for the economic profit and adjusted earnings per share metrics that were applicable for fiscal year 2019 awards:
 
 
Threshold Level
 
Target Level
 
Maximum Level
 
2019
Results
Economic Profit
 
$(61.00) million
 
$1.50 million
 
$64.00 million
 
$4.8 million
 
 
 
 
 
 
 
 
 
Adjusted Earnings Per Share
 
$2.63 per share
 
$4.20 per share
 
$5.77 per share
 
$4.87 per share

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Based on the definition of adjusted earnings per share provided above, a reconciliation of the adjusted earnings per share of $4.87 achieved for fiscal year 2019 to our reported diluted earnings per share of $4.11 is as follows:
Adjusted Earnings Per Share
 
$
4.87

 
 
 
Per share effect of annual cash incentive award accrual excluded from adjusted earnings per share
 
(0.12
)
Per share effect of restructuring and impairment
 
(0.64
)
 
 
 
Reported Diluted Earnings Per Share
 
$
4.11

With a rebound from low African burley crop sales in fiscal year 2018 and the additional benefit of higher carryover sales, we performed well in fiscal year 2019. Our underlying business and customer relationships remain strong. Based on these factors, the Compensation Committee recognized that our performance would likely improve, and therefore adjusted the performance targets on May 25, 2018 to better reflect current and anticipated business conditions and to ensure adequate, yet reasonable, performance stretch in the fiscal year Annual Incentive Plan goals. The performance targets for adjusted earnings per share were adjusted to $4.20, $3.75 and $3.50 in fiscal years 2019, 2018 and 2017, respectively. The performance target for economic profit remained unchanged at $1.5 million throughout the period. The Compensation Committee believed that these goals better reflected the cyclical market supply imbalance and reinforced management's commitment to taking the appropriate long-term approach to our business.
Each executive officer participating in the Annual Incentive Plan is eligible to receive an annual cash incentive award based on a percentage of his or her base salary, which we call the target bonus opportunity percentage. The target bonus opportunity percentage for each executive officer, except the Chief Executive Officer, is initially set by our Chief Executive Officer and is based on the executive officer's experience in his or her present position and job responsibilities. Our Chief Executive Officer submits the recommended target bonus opportunity percentages to the Compensation Committee for its review and approval each year. For our Chief Executive Officer, the Compensation Committee determines the target bonus opportunity percentage. The Compensation Committee also reviews its outside advisor's compensation data for our peer group when evaluating the recommended target bonus opportunity percentages.
Each year, the Compensation Committee approves percent-of-target performance tables for each performance measure. As Company performance deviates from targeted performance, the percentages in the tables increase or decrease at an accelerated rate. Once the economic profit and adjusted earnings per share performance measures have been calculated for the applicable fiscal year, the Compensation Committee compares the calculated performance to the preapproved tables to determine the percentage to apply to the executives' target bonus opportunity amounts. The Compensation Committee applies the resulting percentage to the target bonus opportunity amount to determine the annual cash incentive award each executive is eligible to receive. Annual cash incentive awards are capped at two times the target bonus opportunity percentage for each criterion, regardless of how much the Company's performance exceeded the target level for either criteria. In addition, the Compensation Committee reserves the right to exercise negative discretion in adjusting any incentive awards, but the Compensation Committee has no discretion to increase the awards. The Compensation Committee does not award any discretionary, non-performance based annual cash incentive awards if the performance goals are not achieved.
Using Mr. G. Freeman as an example, we generated economic profit and positive adjusted earnings per share during fiscal year 2019, with adjusted earnings per share and economic profit exceeding the threshold levels. Adjusted earnings per share and economic profit exceeded the target. The economic profit and adjusted earnings per share performance measures for the year corresponded to 120.10% achievement of the target levels on the Compensation Committee's pre-approved tables. Therefore, Mr. G. Freeman's cash incentive award for fiscal year 2019 was 120.10% of his target bonus opportunity amount or $1,102,500.

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The following table lists the target bonus opportunity percentages, the target bonus opportunity amounts, the maximum bonus opportunity amounts, and the actual cash incentive awards for fiscal year 2019 for our named executive officers:
 
 
Target Bonus
Opportunity
Percentage
 
Target Bonus
Opportunity
Amount
 
Maximum
Bonus
Opportunity Amount
 
Actual 2019 Bonus
Paid
 
 
(%)
 
($)
 
($)
 
($)
George C. Freeman, III
 
100
%
 
918,000

 
1,836,000

 
1,102,500

Airton L. Hentschke
 
83
%
 
483,600

 
967,200

 
580,800

David C. Moore(1)
 
83
%
 
383,300

 
766,600

 
191,800

Preston D. Wigner
 
67
%
 
270,800

 
541,600

 
325,200

Theodore G. Broome
 
73
%
 
285,200

 
570,400

 
342,500

(1) 
Mr. D. Moore served for five months as Chief Financial Officer before he retired as of August 31, 2018. In accordance with the terms of the Annual Incentive Plan, Mr. D. Moore received a prorated incentive award of $191,800, which is equal to 5/12 of the actual incentive award Mr. D. Moore would have received if he remained as Chief Financial Officer for fiscal 2019.
Mr. Kroner's compensation and target bonus opportunity were determined by the Compensation Committee upon his promotion to Senior Vice President and Chief Financial Officer effective September 1, 2018. At that time, the Compensation Committee approved a target bonus opportunity percentage of 67% of his new base salary of $450,000 for the remaining period of fiscal year 2019, which represented an increase from Mr. Kroner's previous base salary and target bonus opportunity. For fiscal year 2019, Mr. Kroner’s target annual incentive amount consisted of (i) an amount from April 1, 2018 through August 31, 2018 prior to being appointed Chief Financial Officer and (ii) 67% of his new base salary of $450,000 from September 1, 2018 until March 31, 2019. Mr. Kroner’s maximum bonus opportunity for fiscal year 2019 was $439,000 and for fiscal year 2019, Mr. Kroner received an actual bonus amount of $263,700.
On May 23, 2019, the Compensation Committee established the performance measures applicable for the annual cash incentive awards to be awarded for fiscal year 2020. The Compensation Committee reconfirmed its use of adjusted earnings per share and economic profit as the appropriate performance measures for the fiscal year 2020 cash incentive awards.
3.
Long-Term Equity Participation
The Compensation Committee administers the Universal Corporation 2017 Stock Incentive Plan and the 2007 Stock Incentive Plan, as amended and restated, pursuant to which the Compensation Committee grants to key executive officers restricted stock units and Performance Shares based upon a determination of competitive aggregate compensation levels. The primary objectives of issuing long-term equity awards are to encourage significant ownership of Common Stock by management and to provide long-term financial incentives linked directly to market performance of our Common Stock. Long-term equity awards are aligned with the interests of our shareholders as the awards deliver value based on shareholder return and promote retention of management. The Compensation Committee believes that significant ownership of Common Stock by senior management is the optimal method to align the interests of management and the shareholders. Our compensation structure is designed to deliver a significant portion of total direct opportunity compensation in the form of long-term equity awards with 35% to 50% for named executive officers.
With the exception of new hires or promotions, long-term incentives are awarded annually on a day between one and twelve business days following the public release of our annual earnings. The Compensation Committee selected this timing, because it enables us to consider the prior year performance of the Company and the participants and our expectations for the next performance period, while also guaranteeing that annual awards will be made after we publicly disclose our performance for the year. The awards also are made as early as practicable in our fiscal year in order to maximize the time period for the incentives associated with the awards. The Compensation Committee's schedule is determined between six and twelve months in advance, though changes may occur, and the proximity of any awards to market events other than earnings announcements is coincidental.
We currently use restricted stock units and Performance Shares as the preferred forms of long-term equity participation. Restricted stock units are used as a cost-effective addition to the compensation mix because such awards do not require the issuance of Common Stock until vesting. Our use of Performance Shares as a long-term equity award places greater emphasis on our long-term financial performance and subjects a higher percentage of the long-term incentive awards to risk based on such performance. The addition of Performance Shares is intended to focus greater attention and rewards on the key underlying drivers of shareholder value. Performance Shares are granted annually, with overlapping multi-year performance cycles. Performance Shares vest on

40




the last day of the performance period selected by the Compensation Committee and are earned and paid out based on the Company's achievement of certain performance measures selected by the Compensation Committee. Performance Shares do not carry any dividend rights. Similar to annual cash incentive awards under the Annual Incentive Plan, as the actual performance exceeds the performance measure threshold selected by the Compensation Committee, the amount of Performance Share payout increases, with 100% payout occurring if performance reaches a target level set by the Compensation Committee. Payout can exceed 100% if the performance exceeds the target level, but it is capped at a maximum of 150%. Conversely, the payout is reduced if actual performance falls short of the selected performance measure target. At the time of vesting, the vested Performance Shares are payable in shares of Common Stock.
For awards granted in fiscal years 2018-2020, the Compensation Committee selected average adjusted earnings per share as the appropriate criterion for use with Performance Shares and set the performance period at three fiscal years, which began April 1 of each fiscal year. Adjusted earnings per share is calculated in the same manner as it is with Annual Incentive Plan awards. The threshold levels for adjusted earnings per share performance were set based on levels of performance that were believed to be achievable. The target levels for adjusted earnings per share performance were set based on levels of performance that were believed to be aggressive, but obtainable. Given the cyclical nature of our core business and its maturity, it is difficult to set multiple year performance targets. The maximum levels for adjusted earnings per share performance were set based on levels of performance that were believed to be realizable only with exceptional performance. As previously mentioned, we do not disclose performance targets at the time of awards as we believe that to do so would prove detrimental to our business.
For fiscal year 2019 long-term equity awards, the Compensation Committee determined that one-half should consist of three-year Performance Shares and the remaining one-half should consist of five-year restricted stock units. The Compensation Committee used an equal mix of Performance Shares and restricted stock units because it believes that such mix represents the appropriate balance for our Company in rewarding stock appreciation and relative shareholder return, while also placing sufficient emphasis on our overall financial performance. In May 2018, the Compensation Committee awarded Mr. D. Moore a pro-rata amount of restricted stock units due to his impending retirement on August 31, 2018. In September 2018, the Compensation Committee awarded Mr. Kroner a pro-rata amount of restricted stock units and Performance Shares upon his promotion to Senior Vice President and Chief Financial Officer. In order to allocate compensation among the two forms of equity participation, the Compensation Committee values restricted stock unit awards and Performance Shares at the fair market value on the date of grant of the equivalent number of shares of Common Stock. All restricted stock units are awarded with five-year cliff vesting and earn dividend equivalent units during the same period. These dividend equivalent units only vest when the underlying award of restricted stock units vest. In addition, our named executive officers have additional vesting restrictions or holding period requirements on their restricted stock unit awards in accordance with Section 409(a) of the Internal Revenue Code.
On May 22, 2015, we awarded Performance Shares for the three-year performance period from April 1, 2015 through March 31, 2018. Those awards vested on March 31, 2018 and the payout was approved by the Compensation Committee on May 25, 2018. The performance measure was the three-year average adjusted earnings per share with earnings per share calculated in the same manner as it is with the Annual Incentive Plan awards. We generated average adjusted earnings per share for the performance period covering fiscal years 2016 through 2018 that exceeded the threshold, but fell below the target levels and maximum levels. The following table sets forth the threshold, target and maximum levels for the adjusted earnings per share metrics applicable for the fiscal year 2016 award:
 
 
Threshold
Level
 
Target
Level
 
Maximum
Level
 
Average
2016-2018
Result
Average Adjusted Earnings per Share
 
$
2.83

 
$
4.40

 
$
5.26

 
$
4.10

A reconciliation of average adjusted earnings per share of $4.10 for the performance period covering fiscal years 2016 through 2018 is as follows:
Fiscal Year 2016
 
$
4.05

Fiscal Year 2017
 
4.05

Fiscal Year 2018
 
4.20

3-year Average Adjusted Earnings Per Share
 
$
4.10

The average adjusted earnings per share performance measure for the performance period exceeded the threshold level, but fell below the target level on the Compensation Committee's pre-approved percent-of-target performance table. The payouts of the fiscal year 2016 Performance Share awards were, therefore, made at 85.00% of the target award levels.

41




The following table lists the target Performance Share opportunities, the maximum Performance Share opportunities and the actual number of shares of Common Stock paid out:
 
 
Actual
Payout
as a %
of Target
 
Target
Award
at Grant
(Shares)
 
Maximum
Award
at Grant
(Shares)
 
Actual
Award
(Shares)
 
Target
Award
Value
at Grant(1)
 
Actual
Award
Value(2)
George C. Freeman, III
 
85.0%
 
17,900

 
26,850

 
15,215

 
$
806,574

 
$
1,004,190

Airton L. Hentschke
 
85.0%
 
8,850

 
13,275

 
7,523

 
$
398,781

 
$
496,518

Johan C. Kroner(3)
 
—%
 

 

 

 
$

 
$

David C. Moore
 
85.0%
 
7,000

 
10,500

 
5,950

 
$
315,420

 
$
392,700

Preston D. Wigner
 
85.0%
 
4,700

 
7,050

 
3,995

 
$
211,782

 
$
263,670

Theodore G. Broome
 
85.0%
 
3,600

 
5,400

 
3,060

 
$
162,216

 
$
201,960

(1) 
This column represents grant date fair value determined in accordance with FASB ASC Topic 718. Amounts for Performance Shares are determined assuming a price per share of $45.06 which represents a discount to the closing price of $51.43 as of the date of grant due to the lack of dividend rights.
(2) 
This column represents market value based on the May 25, 2018 stock price of $66.00
(3) 
Mr. Kroner was promoted to Senior Vice President and Chief Financial Officer effective September 1, 2018. He had no Performance Shares vesting in fiscal year 2019.
In fiscal 2019, the Compensation Committee granted Performance Shares and restricted stock units to key executives pursuant to the 2017 Stock Incentive Plan. The Compensation Committee granted a total of 54,800 Performance Shares and 60,700 restricted stock units to 16 executives. The number of Performance Shares and restricted stock units granted to our named executive officers in fiscal 2019, were as follows:
 
 
Performance
Shares
 
Restricted
Stock Units
George C. Freeman, III
 
18,800

 
18,800

Airton L. Hentschke
 
8,900

 
8,900

Johan C. Kroner
 
2,800

 
2,800

David C. Moore
 

 
5,900

Preston D. Wigner
 
4,150

 
4,150

Theodore G. Broome
 
3,700

 
3,700

Mr. D. Moore was awarded only restricted stock units due to his upcoming retirement on August 31, 2018. In September 2018, Mr. Kroner was awarded a pro-rata amount of restricted stock units and Performance Shares in connection with his promotion to Senior Vice President and Chief Financial Officer. Additional details regarding the fiscal year 2019 equity participation awards for each of our named executive officers is set forth in the “Grants of Plan-Based Awards” table on page 47 of this Proxy Statement.
4.
Other Benefits
The Compensation Committee believes employee benefits are an essential component of our competitive total compensation package. These benefits are designed to attract and retain our employees. The named executive officers may participate in the same benefit plans as our salaried employees, which include health, dental, vision and life insurance, disability benefits, and our 401(k) savings plan. Our 401(k) savings plan includes a defined company match component, and we have disclosed all company matches for our named executive officers in Column (i), “All Other Compensation”, in the “Summary Compensation Table”, and separately disclosed each amount in Footnote 5 to that table on pages 45 and 46 of this Proxy Statement.
In addition, we provide certain other benefits to our executives, including our named executive officers. The Compensation Committee believes these other benefits provide security for current and future needs of the executives and their families and therefore assist in attracting and retaining them. These other benefits are structured to be within the competitive range relative to our peer group. In general, we do not provide our executives with many of the types of perquisites that other companies offer their executives, such as the personal use of a corporate aircraft, car allowances, social memberships or club dues, or preventative health evaluations. We also do not utilize tax gross-ups. The Compensation Committee re-evaluates and has approved the very limited types of perquisites that we offer on a regular basis. The additional benefits we provide or have provided to some of our executives during fiscal year 2019 consist of the following and are included in the amounts set forth in Column (i), “All Other Compensation”, in the “Summary Compensation Table”, and separately disclosed in Footnote 5 to that table on pages 45 and 46

42




of this Proxy Statement: financial planning and tax preparation services and matching gifts from the Company's charitable foundation.
5.
Retirement and Post-Termination Compensation
Our named executive officers are covered by a defined benefit retirement plan, a supplemental retirement plan, deferred income plans, and a 401(k) savings plan. Certain of our named executive officers also have Change of Control Agreements addressing a change of control in our company. Additional details and all amounts earned by our named executive officers or contributed by us to our named executive officers through those benefits are disclosed in this Proxy Statement where noted below.
A. Defined Benefit Retirement Plan
Our salaried employees, including our named executive officers, participate in a defined benefit retirement plan, the Employees' Retirement Plan of Universal Leaf Tobacco Company, Incorporated and Designated Affiliated Companies, which we refer to as the Pension Plan.
Further detail regarding the Pension Plan and disclosure of the estimated value of pension benefits for our named executive officers is set forth in the “Pension Benefits” table and related footnotes beginning on page 52 of this Proxy Statement.
B. Benefit Restoration Plan
To the extent benefits payable to our employees at retirement pursuant to the Pension Plan exceed amounts that may be payable under applicable provisions of the Internal Revenue Code, such benefits will be paid under our supplemental retirement plan called the Universal Leaf Tobacco Company, Incorporated 1996 Benefit Restoration Plan, which we refer to as the Benefit Restoration Plan. Further information about the Benefit Restoration Plan is set forth in the "Pension Benefits" table and related footnotes beginning on page 52 of this Proxy Statement.
C. Deferred Income Plans
We offer all employees, including our named executive officers, the opportunity to participate in the Employees' 401(k) Savings Plan of Universal Leaf Tobacco Company, Incorporated and Designated Affiliated Companies, which we refer to as the 401(k) Plan. Further information about the 401(k) Plan is set forth under "Non-Qualified Deferred Compensation" beginning on page 54 of this Proxy Statement.
D. Change of Control Agreements
We do not offer severance agreements to our named executive officers, nor have we offered them agreements for employment or retention with our company. However, to ensure that we will have the continued dedicated service of certain named executive officers notwithstanding the possibility, threat, or occurrence of a change of control, we have two change of control agreements that have been in existence since 2009, and which we refer to as Change of Control Agreements. The Compensation Committee believes that existing Change of Control Agreements serve the best interests of Universal Corporation and our shareholders by ensuring that if a hostile or friendly change of control is ever under consideration, our executives are able to perform their duties and responsibilities and advise the Board of Directors about the potential transaction in the best interests of shareholders, without being unduly influenced by the distracting uncertainty and risk associated with a change of control, such as fear of the economic consequences of losing their jobs as a result of a change of control. The terms and conditions in the Change of Control Agreements are described under "Summary of Termination Payments and Benefits" beginning on page 56 of this Proxy Statment.
Advisory Votes on Executive Compensation
At the 2017 Annual Meeting of Shareholders, a large majority of our shareholders approved, on a non-binding basis, the holding of the non-binding vote on the compensation of our named executive officers on an annual basis. As previously disclosed, the Board of Directors and management determined to implement an annual advisory vote on the compensation of our named executive officers. As a result, we are including the non-binding advisory resolution approving the compensation of our named executive officers again in this Proxy Statement. See "Proposal Two" on page 68 of this Proxy Statement.
As required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the subsequent rules and regulations promulgated by the SEC, we are including a non-binding advisory resolution approving the compensation of our named executive officers. The vote on this proposal will be non-binding on us and the Board and will not be construed as overruling a

43




decision by us or the Board of Directors. This vote will not create or imply any change to our fiduciary duties or create or imply any additional fiduciary duties for us or the Board of Directors. However, the Board of Directors values the opinions that our shareholders express in their votes and will consider the outcome of the vote when making future decisions on named executive officer compensation as it deems appropriate.
At the 2018 Annual Meeting of Shareholders, approximately 93.5% of the shares cast on the proposal were voted for the non-binding advisory resolution approving the compensation of our named executive officers. The Board of Directors believes that the voting results indicate our shareholders' approval of our named executive officer compensation objectives, program and rationale. The Board of Directors implemented the same objectives, program and rationale for the compensation of our named executive officers in fiscal year 2019, as disclosed in the “Compensation Discussion and Analysis”, the compensation tables and the accompanying narrative on pages 27 through 62 in this Proxy Statement.
REPORT OF THE COMPENSATION COMMITTEE
We have reviewed and discussed the “Compensation Discussion and Analysis” section of this Proxy Statement with management. Based on that review and discussion, we have recommended to the Board of Directors that the “Compensation Discussion and Analysis” section be included in this Proxy Statement.
 
COMPENSATION COMMITTEE
 
 
 
Thomas H. Johnson, Chairman
 
Diana F. Cantor
 
Lennart R. Freeman
 
Michael T. Lawton
Richmond, Virginia
May 23, 2019
COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
None of the members of the Compensation Committee during fiscal year 2019 or as of the date of this Proxy Statement is or has been a Universal officer or employee, and none of our executive officers served on the compensation committee or board of any company that employed any member of our Compensation Committee or Board of Directors.

44




EXECUTIVE COMPENSATION
The individuals named below include the Chairman, President, and Chief Executive Officer, the Chief Financial Officer and the other named executive officers as of March 31, 2019. Information relating to total compensation is provided, where applicable, for the fiscal years ended March 31, 2017, 2018 and 2019.
SUMMARY COMPENSATION TABLE
Name and
Principal Position
 
Fiscal
Year
 
Salary(1)
 
Stock
Awards(2)
 
Option
Awards(2)
 
Non-Equity
Incentive Plan
Compensation(3)
 
Change in
Pension Value
and
Nonqualified Deferred
Compensation
Earnings(4)
 
All Other
Compensation(5)
 
Total
 
 
 
 
($)
 
($)
 
($)
 
($)
 
($)
 
($)
 
($)
(a)
 
(b)
 
(c)
 
(e)
 
(f)
 
(g)
 
(h)
 
(i)
 
(j)
George C. Freeman, III
 
2019
 
918,000

 
2,315,596

 

 
1,102,500

 
984,516

 
25,775

 
5,346,387

Chairman, President, and Chief Executive Officer
 
2018
 
900,000

 
1,629,056

 

 
995,000

 
167,046

 
20,097

 
3,711,199

 
 
2017
 
850,100

 
1,619,161

 

 
1,114,100

 
381,524

 
28,774

 
3,993,659

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Airton L. Hentschke
 
2019
 
580,300

 
1,096,213

 

 
580,800

 
220,831

 
17,197

 
2,495,341

Senior Vice President and Chief Operating Officer
 
2018
 
568,900

 
769,984

 

 
524,100

 
119,876

 
13,406

 
1,996,266

 
 
2017
 
560,500

 
801,721

 

 
612,100

 
142,445

 
15,758

 
2,132,524

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Johan C. Kroner(1)
 
2019
 
377,100

 
341,616

 

 
263,700

 
86,456

 
19,721

 
1,088,593

Senior Vice President and Chief Financial Officer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
David C. Moore(1)
 
2019
 
191,625

 
389,400

 

 
191,800

 

 
15,547

 
788,372

Former Senior Vice President and Chief Financial Officer
 
2018
 
450,900

 
642,240

 

 
415,300

 
294,263

 
15,219

 
1,817,922

 
 
2017
 
444,200

 
634,041

 

 
485,100

 
380,586

 
14,990

 
1,958,917

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preston D. Wigner
 
2019
 
406,300

 
511,156

 

 
325,200

 
222,217

 
15,510

 
1,480,383

Vice President, General Counsel, and Secretary
 
2018
 
398,300

 
362,720

 

 
293,500

 
50,470

 
13,708

 
1,118,698

 
 
2017
 
340,100

 
424,441

 

 
342,800

 
94,100

 
14,958

 
1,216,399

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Theodore G. Broome
 
2019
 
388,900

 
455,729

 

 
342,500

 
297,571

 
15,495

 
1,500,195

Executive Vice President and Sales Director
 
2018
 
373,900

 
318,175

 

 
303,100

 
232,519

 
13,876

 
1,241,570

Universal Leaf Tobacco Co., Inc.
 
2017
 
343,800

 
324,880

 

 
386,200

 
214,437

 
13,293

 
1,282,610

(1) 
Salary amounts include cash compensation earned by each named executive officer during fiscal years 2017, 2018 and 2019, where applicable, as well as any amounts earned in such fiscal years, but contributed into the 401(k) Plan and/or deferred at the election of the named executive officer into our deferred compensation program. For a discussion of the deferred compensation program and amounts deferred by the named executive officers in fiscal year 2019, including earnings on amounts deferred, see “Non-qualified Deferred Compensation” beginning on page 54 of this Proxy Statement. Mr. Kroner was promoted effective September 1, 2018. Mr. D. Moore retired on August 31, 2018.
(2) 
The amount represents the aggregate grant date fair value of stock or options awarded in the applicable fiscal year in accordance with FASB ASC Topic 718. This amount does not reflect our accounting expense for these award(s) during the year and does not correspond to the actual cash value that will be recognized by the named executive officer when received. Performance Share awards do not have dividend rights and therefore reflect a lower grant date fair value than the closing price of our Common Stock on the date of grant. For fiscal years 2017, 2018 and 2019 Performance Share awards, the grant date per share was $49.17, $60.37 and $57.17, respectively. Amounts for fiscal years 2017, 2018 and 2019 include Performance Share awards calculated at target levels. If these Performance Share awards paid at maximum (150% of target), the aggregate grant date fair value of all stock awards for each of the named executive officers would have been at the time of the grant: for fiscal year 2017, Mr. G. Freeman: $1,998,999; Mr. Hentschke: $989,796; Mr. D. Moore: $782,780; Mr. Wigner: $524,010;

45




and Mr. Broome: $401,094; for fiscal year 2018, Mr. G. Freeman: $2,015,424; Mr. Hentschke: $952,603; Mr. D. Moore: $642,240; Mr. Wigner: $448,747; and Mr. Broome: $393,637; and for fiscal year 2019, Mr. G. Freeman: $2,852,994; Mr. Hentschke: $1,350,620; Mr. Kroner: $420,849; Mr. D. Moore: $389,400; Mr. Wigner: $629,783; and Mr. Broome: $561,494. Assumptions used in the calculation of these award amounts are included in Notes 1 and 12 to the consolidated financial statements, included in our Annual Report on Form 10-K for the year ended March 31, 2017, in Notes 1 and 12 to the consolidated financial statements, included in our Annual Report on Form 10-K for the year ended March 31, 2018, in Notes 1 and 13 to the consolidated financial statements, included in our Annual Report on Form 10-K for the year ended March 31, 2019, and incorporated by reference into this Proxy Statement. Beginning in fiscal year 2007, fair value expense for stock-based compensation was recognized ratably over the period from grant date to the earlier of (a) the vesting date of the award, or (b) the date the grantee is eligible to retire without forfeiting the award. For employees who are already eligible to retire at the date an award is granted, the total fair value of the award is recognized as expense at the date of grant. Information on individual equity awards granted to the named executive officers in fiscal year 2019 is set forth in the section entitled “Grants of Plan-Based Awards” on page 47 of this Proxy Statement.
(3) 
The amounts represent cash awards to the named executive officers under our performance-based annual cash incentive plan for fiscal years 2017, 2018 and 2019, where applicable, which is discussed in the section entitled “Annual Cash Incentives Awards” beginning on page 38 of this Proxy Statement. While such amounts were earned for fiscal years 2017, 2018 and 2019 performance, they were not paid to the named executive officers until June 12, 2017, June 12, 2018, and June 14, 2019, respectively.
(4) 
The amounts represent the actuarial increases in the present values of the named executive officers' benefits under our pension plans during fiscal years 2017, 2018 and 2019, as applicable, determined using interest rate and mortality rate assumptions consistent with those used in our financial statements. For all named executive officers except Mr. D. Moore, the amounts only reflect changes in pension value because they had no above market interest earnings for fiscal years 2017, 2018 and 2019. For Mr. D. Moore we do not show a change in pension value for fiscal year 2019 because he retired on August 31, 2018. For additional information on our pension plans, see the section entitled “Retirement and Post-Termination Compensation” on page 43 of this Proxy Statement and the tables entitled “Pension Benefits” on page 52 of this Proxy Statement and “Non-qualified Deferred Compensation” on page 54 of this Proxy Statement. For a full description of the pension plan assumptions used by us for financial reporting purposes for fiscal years 2017, 2018 and 2019, see Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019, and incorporated by reference into this Proxy Statement.
(5) 
The table below reflects the types and dollar amounts of perquisites, additional compensation, and other personal benefits provided to the named executive officers during fiscal year 2019. For purposes of computing the dollar amounts of the items listed below, we used the actual out-of-pocket costs to us of providing the perquisite or other personal benefit to the named executive officer. The named executive officers paid any taxes associated with these benefits without reimbursement from us. Each perquisite and personal benefit included in the table below is described in more detail in the narratives immediately following the table:
Column (i) Components
 
G.C.
Freeman, III
 
A.L.
Hentschke
 
J.C.
Kroner
 
D.C.
Moore
 
P.D.
Wigner
 
T.G.
 Broome
 
 
($)
 
($)
 
($)
 
($)
 
($)
 
($)
Professional Fees (a)
 
3,550

 

 

 
5,554

 

 

401(k) Match (b)
 
17,225

 
16,234

 
17,621

 
9,993

 
15,510

 
15,495

Matching Gifts (c)
 
5,000

 

 
2,100

 

 

 

Home Leave - Expatriates (d)
 

 
963

 

 

 

 

TOTALS
 
25,775

 
17,197

 
19,721

 
15,547

 
15,510

 
15,495

(a) 
Financial Planning and Tax Preparation Services. Only Mr. G. Freeman, Mr. Kroner and Mr. D. Moore are eligible to be reimbursed for financial planning and tax preparation services they incur during the fiscal year, subject to an annual cap of $15,000. All reimbursed amounts paid to these named executive officers during fiscal year 2019 pursuant to our financial planning and tax preparation policy are individually disclosed in the perquisites table above.
(b) 
401(k) Company Match. Each named executive officer is eligible to participate in the 401(k) Plan, which offers them an opportunity to defer income and receive matching contributions from us subject to certain limits. Company contributions made to the named executive officers during fiscal year 2019 are set forth in the table above. Information about the 401(k) Plan is set forth in the section entitled “Deferred Income Plans” beginning on page 43 of this Proxy Statement.
(c) 
Matching Gifts. Each named executive officer is eligible to participate in our matching gifts program in which our charitable foundation matches employees' contributions to charities. The maximum amount applicable to all participants that can be matched in any fiscal year of our foundation is $5,000 per participant. The named executive officers participated in the matching gifts program in amounts set forth above.
(d) 
Home Leave - Expatriates. Mr. Hentschke is a Brazilian expatriate working in our Richmond, Virginia headquarters and is entitled to one round-trip, economy class airline ticket per year for himself and his dependents.

46




GRANTS OF PLAN-BASED AWARDS
The following table presents information regarding grants of plan-based awards to the named executive officers during the fiscal year ended March 31, 2019.
Name and Grant Date
 
Estimated Future Payouts
Under Non-Equity
Incentive Plan Awards(1)
 
Estimated Future Payouts
Under Equity
Incentive Plan Awards(2)
 
All Other Stock Awards: Number of Shares of Stock or Units(3)
 
All Other
Option
Awards:
Number of
Securities
Underlying Options
 
Exercise
or Base
Price of
Option Awards
 
Market Price of Option Awards on Grant Date
 
Grant Date Fair Value of Stock and Option Awards(4)
 
Threshold
 
Target
 
Max.
 
Threshold
 
Target
 
Max.
 
 
 
 
 
 
 
($)
 
($)
 
($)
 
(#)
 
(#)
 
(#)
 
(#)
 
(#)
 
($/Sh)
 
($/Sh)
 
($)
(a & b)
 
(c)
 
(d)
 
(e)
 
(f)
 
(g)
 
(h)
 
(i)
 
(j)
 
(k)
 
(l)
 
(m)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
George C. Freeman, III
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0

 
918,000

 
1,836,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5/25/2018
 
 
 
 
 
 
 
0

 
18,800

 
28,200

 
 
 
 
 
 
 
66.00

 
1,074,796

5/25/2018
 
 
 
 
 
 
 
 
 
 
 
 
 
18,800

 
 
 
 
 
66.00

 
1,240,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Airton L. Hentschke
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0

 
483,600

 
967,200

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5/25/2018
 
 
 
 
 
 
 
0

 
8,900

 
13,350

 
 
 
 
 
 
 
66.00

 
508,813

5/25/2018
 
 
 
 
 
 
 
 
 
 
 
 
 
8,900

 
 
 
 
 
66.00

 
587,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Johan C. Kroner
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0

 
219,500

 
439,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5/25/2018
 
 
 
 
 
 
 
0
 
1,800

 
2,700

 
 
 
 
 
 
 
66.00
 
102,906

5/25/2018
 
 
 
 
 
 
 
 
 
 
 
 
 
1,800

 
 
 
 
 
66.00
 
118,800

9/17/2018
 
 
 
 
 
 
 
0
 
1,000

 
1,500

 
 
 
 
 
 
 
64.35

 
55,560

9/17/2018
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000

 
 
 
 
 
64.35

 
64,350

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
David C. Moore
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0

 
159,700

 
319,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5/25/2018
 
 
 
 
 
 
 
0

 
0

 
0

 
 
 
 
 
 
 
`
 

5/25/2018
 
 
 
 
 
 
 
 
 
 
 
 
 
5,900

 
 
 
 
 
66.00

 
389,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preston D. Wigner
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0

 
270,800

 
541,600

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5/25/2018
 
 
 
 
 
 
 
0

 
4,150

 
6,225

 
 
 
 
 
 
 
66.00

 
237,256

5/25/2018
 
 
 
 
 
 
 
 
 
 
 
 
 
4,150

 
 
 
 
 
66.00

 
273,900

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Theodore G. Broome
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0

 
285,200

 
570,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5/25/2018
 
 
 
 
 
 
 
0

 
3,700

 
5,550

 
 
 
 
 
 
 
66.00

 
211,529

5/25/2018
 
 
 
 
 
 
 
 
 
 
 
 
 
3,700

 
 
 
 
 
66.00

 
244,200

(1) 
Amounts represent potential annual cash incentive awards for fiscal year 2019. The actual amount of the annual cash incentive award earned by each named executive officer for fiscal year 2019 is reported in Column (g), “Non-Equity Incentive Plan Compensation,” in the “Summary Compensation Table” on page 45 of this Proxy Statement. For additional information with respect to the annual cash incentive awards under the Incentive Plan, see the section entitled “Annual Cash Incentives Awards” beginning on page 38 of this Proxy Statement. Mr. Kroner was promoted to Senior Vice President and Chief Financial Officer effective September 1, 2018. His estimated future target is based upon his compensation from April 1, 2018 to August 31, 2018, and his compensation from September 1, 2018 to March 31, 2019. Mr. D. Moore retired on August 31, 2018 and his target and maximum award value are prorated accordingly.
(2) 
Amounts represent potential vesting of Performance Shares granted during fiscal year 2019. Performance Shares vest in the event the three-year performance measures corresponding to the Performance Shares are met or exceeded. For additional information with respect to Performance Shares granted pursuant to our Stock Incentive Plan, see the section entitled “Long-Term Equity Participation” beginning on page 40 of this Proxy Statement and in Column (g) in the table entitled “Outstanding Equity Awards at Fiscal Year End” on page 49 of this Proxy Statement.


47




(3) 
Amounts represent the award of restricted stock units. Each restricted stock unit will convert one-for-one into shares of Common Stock upon vesting. Additional information with respect to restricted stock unit awards is set forth in the section entitled “Long-Term Equity Participation” beginning on page 40 of this Proxy Statement, and in Column (i) in the table entitled “Outstanding Equity Awards at Fiscal Year End” on page 49 of this Proxy Statement.
(4) 
Represents the grant date fair value of the award determined in accordance with FASB ASC Topic 718. The full grant date fair value of the Performance Shares is calculated at the target performance level and will vest, if at all, at the end of a three-year measurement period, if certain performance targets are met. Amounts for Performance Share awards are determined assuming a price per share of $57.17 as of May 25, 2018 and $55.56 as of September 17, 2018, which represents a discount to the closing price of Common Stock as of the date of grant due to the lack of dividend rights. Each Performance Share will convert one-for-one into a share of Common Stock upon vesting if the performance target is met. Grant date fair value for the restricted stock unit awards is based on the grant date fair value of the underlying shares of Common Stock. The assumptions used in determining the grant date fair values of these awards are set forth in Note 13 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019, and incorporated by reference into this Proxy Statement.

48




OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END
The following table presents information concerning the number and value of outstanding restricted stock units and Performance Shares held by the named executive officers as of March 31, 2019.
 
 
Option Awards
 
Stock Awards
Name and Grant Date
 
Number of
Securities
Underlying
Unexercised
Options
Exercisable
 
Number of
Securities
Underlying
Unexercised
Options
Unexercisable
 
Option
Exercise
Price
 
Option
Expiration
Date
 
PSA's Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other
Rights
That Have
Not
Vested(1)
 
Equity
Incentive
Plan
Awards:
Market or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That Have
Not
Vested(2)
 
RSU's + Dividend Rights Number of
Shares or
Units of
Stock That
Have Not
Vested(1)
 
Market Value of Shares or Units of Stock That Have Not Vested(2)
 
 
(#)
 
(#)
 
($)
 
 
 
(#)
 
($)
 
(#)
 
($)
(a)
 
(b)
 
(c)
 
(e)
 
(f)
 
(g)
 
(h)
 
(i)
 
(j)
George C. Freeman, III
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 3, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
18,204

 
1,049,097

May 22, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
20,785

 
1,197,840

June 2, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
17,253

 
994,290

June 1, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
13,823

 
796,619

May 25, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
19,474

 
1,122,287

June 2, 2016
 
 
 
 
 
 
 
 
 
15,450

 
890,384

 
 
 
 
June 1, 2017
 
 
 
 
 
 
 
 
 
12,800

 
737,664

 
 
 
 
May 25, 2018
 
 
 
 
 
 
 
 
 
18,800

 
1,083,444