CASS INFORMATION SYSTEMS, INC.
12444 Powerscourt Drive, Suite 550
St. Louis, Missouri 63131
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To be held on
April 18, 2023
The Annual Meeting of Shareholders of Cass Information Systems, Inc. will be held at the location specified below on Tuesday, April 18, 2023, at 8:30 a.m. local time, for the following purposes:
- To elect five directors to serve, each for a three-year term;
- To hold a non-binding advisory vote on executive compensation;
- To hold a non-binding advisory vote on the frequency of executive compensation advisory votes;
- To approve the 2023 Omnibus Stock and Performance Compensation Plan;
- To ratify the appointment of KPMG LLP as the independent registered public accounting firm for 2023; and
- To act upon such other matters as may properly come before the Annual Meeting or any adjournment thereof.
The close of business on March 3, 2023 has been fixed as the record date for determining shareholders entitled to notice of and to vote at the Annual Meeting or any adjournment thereof.
This year's Annual Meeting will be held at The Bogey Club, located at 9266 Clayton Road, Saint Louis, Missouri 63124.
All shareholders are cordially invited to attend the Annual Meeting.
This booklet includes the notice and proxy statement, which describes the business we will conduct at the meeting and provides information about the Company that you should consider when you vote your shares. The Company has not planned a communications segment or any presentations for the Annual Meeting.
Whether or not you intend to be present, it is important that your shares be represented and voted at the Annual Meeting. You can vote your shares by one of the following methods: vote over the internet or by telephone using the instructions on your proxy card, or mark, sign, date and promptly return your proxy card. The presence, in person or by properly executed proxy, of a majority of the common stock outstanding on the record date is necessary to constitute a quorum at the Annual Meeting.
Please note that you will be required to present an admission ticket to attend the Annual Meeting. Your admission ticket is attached to your proxy card. If your shares are held in the name of a broker, trust, bank or other nominee, you can request an admission ticket by contacting our Investor Relations department at (314) 506-5500 or ir@cassinfo.com.
By Order of the Board of Directors,
Matthew S. Schuckman
Secretary
St. Louis, Missouri
March 8, 2023
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON APRIL 18, 2023
The Company's Proxy Statement and annual report on Form 10-K for the 2022 fiscal year are available on our Investor Relations site at www.cassinfo.com.
The Company makes available free of charge, through its website www.cassinfo.com, its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed and furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act), as soon as reasonably practicable after such documents are electronically filed with, or furnished to, the Securities and Exchange Commission (the SEC).
TABLE OF CONTENTS | |
I. ELECTION OF DIRECTORS - PROPOSAL 1 | 3 |
Composition of the Board, Board Diversity and Director Qualifications | 3 |
Nominees and Continuing Directors | 3 |
Director Independence | 6 |
Corporate Governance | 6 |
Board Evaluation | 7 |
Board Leadership Structure | 7 |
Risk Management Oversight | 8 |
Communications with the Board of Directors | 8 |
Board Meetings and Committees of the Board | 8 |
Board Diversity | 11 |
Director Compensation | 12 |
Certain Relationships and Related Party Transactions | 13 |
Report of the Audit and Risk Committee | 14 |
Information Security and Data Privacy | 15 |
Environmental, Social, and Governance | 15 |
Shareholder Engagement | 15 |
II. ADVISORY VOTE ON EXECUTIVE COMPENSATION - PROPOSAL 2 | 16 |
III. ADVISORY VOTE ON FREQUENCY OF EXECUTIVE COMPENSATION ADVISORY VOTES - | |
PROPOSAL 3 | 16 |
IV. APPROVAL OF THE 2023 OMNIBUS STOCK AND PERFORMANCE COMPENSATION PLAN - | |
PROPOSAL 4 | 17 |
Overview of the 2023 Omnibus Plan | 17 |
Material Terms of the 2023 Omnibus Plan | 18 |
V. EXECUTIVE COMPENSATION AND RELATED INFORMATION | 26 |
Compensation Discussion and Analysis | 26 |
Committee Review of Executive Compensation | 29 |
Shareholder Feedback on Say on Pay | 30 |
Role of the Compensation Committee's Independent Consultant | 30 |
Executive Summary of Results | 31 |
Elements of Compensation | 31 |
CEO Pay Ratio | 39 |
Compensation Committee Report | 42 |
Executive Officers | 42 |
Summary Compensation Table | 43 |
All Other Compensation Table | 44 |
Grants of Plan-Based Awards | 44 |
Outstanding Equity Awards at Fiscal Year-End | 46 |
Pay Versus Performance Table | 47 |
SARs Exercised and Stock Vested | 52 |
Pension Benefits | 52 |
VI. BENEFICIAL OWNERSHIP OF SECURITIES | 53 |
Stock Ownership of Directors, Executive Officers, and 5% Beneficial Owners | 53 |
VII. RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - | |
PROPOSAL 5 | 55 |
Fees Incurred for Services Performed by the Independent Registered Public Accountants | 55 |
VIII. SHAREHOLDER PROPOSALS FOR THE 2024 ANNUAL MEETING | 56 |
VIX. OTHER MATTERS AND HOUSEHOLDING | 56 |
APPENDIX A - 2023 OMNIBUS STOCK AND PERFORMANCE COMPENSATION PLAN | 57 |
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CASS INFORMATION SYSTEMS, INC.
12444 Powerscourt Drive, Suite 550
St. Louis, Missouri 63131
PROXY STATEMENT
Annual Meeting of Shareholders to be held April 18, 2023
This Proxy Statement is being furnished to the common shareholders of Cass Information Systems, Inc. (the Company) on or about March 8, 2023 in connection with the solicitation of proxies on behalf of the Board of Directors of the Company (the Board) for use at the annual meeting of shareholders (the Annual Meeting) to be held on April 18, 2023 at the time and place and for the purposes set forth in the accompanying Notice of Annual Meeting, and at any adjournment of that meeting.
Holders of common stock, par value $.50 per share, of the Company at its close of business on March 3, 2023 (the Record Date) are entitled to receive notice of and vote at the Annual Meeting. On the Record Date, there were 13,710,353 shares of common stock outstanding and entitled to vote at the Annual Meeting. Holders of record of common stock are entitled to one vote per share of common stock they held of record on the Record Date on each matter that may properly come before the Annual Meeting. Company management and members of the Board, in the aggregate, directly or indirectly controlled approximately 2.39% of the common stock outstanding on the Record Date.
Shareholders of record on the Record Date are entitled to cast their votes in person or by properly executed proxies at the Annual Meeting. The presence, in person or by properly executed proxy, of a majority of the shares of common stock outstanding on the Record Date is necessary to constitute a quorum at the Annual Meeting. If a quorum is not present at the time the Annual Meeting is convened, the Company may adjourn the Annual Meeting.
If a quorum is present, the affirmative vote of a majority of the shares entitled to vote which are present in person or represented by proxy at the Annual Meeting is required to elect directors; approve, by advisory vote, executive compensation; approve the 2023 Omnibus Stock and Performance Compensation Plan; ratify the appointment of KPMG LLP as the Company's independent registered public accounting firm for 2023; and to act on any other matters properly brought before the Annual Meeting. This means that of the shares represented at the Annual Meeting and entitled to vote, a majority of them must be voted "for" a director nominee for such nominee to be elected or "for" such other proposal for it to be approved. With respect to Proposal 3, shareholders have the choice of voting to hold an advisory vote on executive compensation every one, two, or three years, or abstaining. Shareholders may not cumulate their votes in the election of directors.
In tabulating the voting results, abstentions and shares represented by broker non-votes (explained below) will be counted as present and entitled to vote for purposes of determining a quorum. For purposes of determining whether the shareholders have elected a director nominee or approved a matter, abstentions are treated as shares represented and entitled to vote on each proposal and will thus have the same effect as a vote "against" a director nominee or such other proposal. Shares held by brokers that do not have discretionary authority to vote on a proposal and have not received voting instructions from their clients are considered "broker non-votes." Broker non-votes will not be considered in determining the number of votes necessary for approval of a matter and will have no effect on the outcome of the vote for directors or other proposals. As such, for your vote to be counted, you must submit your voting instruction form to your broker.
Please note that brokers may no longer use discretionary authority to vote shares on the election of directors if they have not received instructions from their clients. Please vote your proxy so your vote can be counted. The inspector of elections appointed for the Annual Meeting will separately tabulate and certify affirmative and negative votes, abstentions and broker non-votes.
Any proxy given pursuant to this solicitation may be revoked by the person giving it at any time before it is voted. Proxies may be revoked by (i) filing with the Secretary of the Company, at or before the Annual Meeting, a written notice of revocation bearing a date later than the date of the proxy, (ii) duly executing and dating a subsequent proxy relating to the common stock and delivering it to the Secretary of the Company at or before the vote is taken at the
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Cass Information Systems Inc. published this content on 07 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2023 17:16:09 UTC.