LIOS GATE LIONS GATE ENTERTAINMENT CORP.
2022
NOTICE OF ANNUAL MEETING OF
SHAREHOLDERS AND PROXY STATEMENT
LIONS GATE ENTERTAINMENT CORP.
250 HOWE STREET, 20TH FLOOR
Vancouver, British Columbia V6C 3R8
2700 Colorado Avenue
Santa Monica, California 90404
NOTICE OF ANNUAL GENERAL AND SPECIAL MEETING OF SHAREHOLDERS
To Be Held September 13, 2022
To Our Shareholders:
You are invited to attend the annual general and special meeting of shareholders (the "Annual Meeting") of Lions Gate Entertainment Corp. ("Lionsgate" or the "Company"), which will be held on Tuesday, September 13, 2022, beginning at 1:00 p.m., Pacific Time, at the Company's head office in Canada at Dentons Canada, 250 Howe Street, 20th Floor, Vancouver, British Columbia, V6C 3R8. At the Annual Meeting, shareholders will act on the following matters:
- Elect 12 directors, each for a term of one year or until their respective successors are duly elected and qualified;
- Re-appointErnst & Young LLP as the Company's independent registered public accounting firm for the fiscal year ending March 31, 2023 and authorization of the Audit & Risk Committee to fix their remuneration;
- Conduct an advisory vote to approve executive compensation; and
- Transact such further and other business as may properly come before the meeting and any continuations, adjournments or postponements thereof.
We are using the Securities and Exchange Commission rule that allows companies to furnish their proxy materials over the Internet. As a result, we are mailing our shareholders a "Notice of Internet Availability of Proxy Materials" (the "Notice") instead of a printed copy of the notice of Annual Meeting, proxy statement, and proxy card or voting instruction form and our Annual Report for the fiscal year ended March 31, 2022 (including the audited consolidated financial statements of the Company as of and for the fiscal year ended March 31, 2022, together with the auditor's report therein) (the "Meeting Materials"). Each shareholder (other than those who previously requested electronic delivery of all materials or previously elected to receive delivery of a paper copy of the Meeting Materials) will receive a Notice. The Notice contains instructions on how shareholders can access the Meeting Materials over the Internet and vote their Company Class A voting shares, without par value (the "Class A Voting Shares"). The Notice also contains instructions on how shareholders can receive a printed copy of the Meeting Materials. We believe this process will expedite shareholders' receipt of the Meeting Materials, lower the costs of the Annual Meeting and conserve natural resources. The Meeting Materials are also available at www.proxyvote.com.
We are also utilizing the "Notice and Access" rules adopted by the Canadian Securities Administrators pursuant to which the Company will post electronic copies of the Meeting Materials on the System for Electronic Document Analysis and Retrieval at www.sedar.com and also on our website at https://investors.lionsgate.com/financial-reports/annual-reports-and-proxy-statements/proxy-statements rather than mailing paper copies to all registered and Non-Registered Shareholders (as defined in this proxy statement).
Shareholders of record of Class A Voting Shares at 5:00 p.m. (Eastern Time) on July 22, 2022 are entitled to notice of and to vote at the Annual Meeting or any continuations, adjournments or postponements thereof. Whether or not you plan to attend the Annual Meeting, we urge you to submit your proxy or voting instructions as promptly as possible by Internet, telephone or mail to ensure your representation and the presence of a quorum at the Annual Meeting. If you attend the Annual Meeting and wish to vote in person, you may withdraw your proxy or voting instructions and vote your shares personally. Your proxy is revocable in accordance with the procedures set forth in the proxy statement.
By Order of the Board of Directors,
Jon Feltheimer
Chief Executive Officer
Santa Monica, California
Vancouver, British Columbia
July 28, 2022
In accordance with our security procedures, all persons attending the Annual Meeting will be required to present picture identification.
TABLE OF CONTENTS | |
PROXY SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | i |
PROXY STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1 |
ABOUT THE ANNUAL MEETING . . . . . . . . . . . . . . . . . . . . . . . . . | 1 |
PROPOSAL 1: ELECTION OF DIRECTORS . . . . . . . . . . . . . . . . . . | 7 |
PROPOSAL 2: RE-APPOINTMENT OF INDEPENDENT | |
REGISTERED PUBLIC ACCOUNTING FIRM . . . . . . . . . . . . . . . . . | 17 |
PROPOSAL 3: ADVISORY VOTE TO APPROVE EXECUTIVE | |
COMPENSATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18 |
ENVIRONMENTAL, SOCIAL AND GOVERNANCE . . . . . . . . . . . | 19 |
Environmental, Social Responsibility and Human Capital | |
Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19 |
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 21 |
Separate Chair and Chief Executive Officer Roles . . . . . | 22 |
Board Role in Risk Oversight . . . . . . . . . . . . . . . . . . . . . . . . | 22 |
Management Succession Plan . . . . . . . . . . . . . . . . . . . . . . . | 23 |
Cybersecurity and Information Security Risk . . . . . . . . . . | 23 |
Stock Ownership Guidelines . . . . . . . . . . . . . . . . . . . . . . . . | 23 |
Policy on Hedging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 24 |
Role of The Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 24 |
Board and Shareholder Meeting Attendance . . . . . . . . . | 24 |
Board Committees and Responsibilities . . . . . . . . . . . . . . | 24 |
Determining Board Composition . . . . . . . . . . . . . . . . . . . . | 28 |
Term Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 29 |
Director Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 29 |
Shareholder Communications . . . . . . . . . . . . . . . . . . . . . . . | 30 |
Code of Business Conduct and Ethics . . . . . . . . . . . . . . . . | 30 |
Annual Director Evaluations . . . . . . . . . . . . . . . . . . . . . . . . . | 30 |
Director Independence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 30 |
Non-Management Director Meetings . . . . . . . . . . . . . . . . | 31 |
Director Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 31 |
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 33 |
COMPENSATION DISCUSSION AND ANALYSIS . . . . . . . . . . . . | 34 |
Named Executive Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . | 34 |
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 34 |
Shareholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . | 37 |
Key Features of Our Executive Compensation | |
Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 38 |
Program Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 39 |
Compensation Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 39 |
Process for Determining Executive Compensation . . . . . | 40 |
Compensation Components . . . . . . . . . . . . . . . . . . . . . . . . | 42 |
Compensation Committee Report on Executive | |
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 56 |
COMPANY'S COMPENSATION POLICIES AND RISK | |
MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 56 |
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER | |
PARTICIPATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 56 |
EXECUTIVE COMPENSATION INFORMATION . . . . . . . . . . . . . | 57 |
Summary Compensation Table . . . . . . . . . . . . . . . . . . . . . | 57 |
Description of Employment Agreements . . . . . . . . . . . . | 58 |
Grants of Plan-Based Awards . . . . . . . . . . . . . . . . . . . . . . | 61 |
Outstanding Equity Awards . . . . . . . . . . . . . . . . . . . . . . . . | 65 |
Option Exercises and Stock Vested . . . . . . . . . . . . . . . . . | 67 |
Non-Qualified Deferred Compensation . . . . . . . . . . . . . | 68 |
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE | |
IN CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 69 |
Estimated Severance and Change in Control | |
Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 72 |
Pay Ratio Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 73 |
EQUITY COMPENSATION PLAN INFORMATION . . . . . . . . . . | 74 |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL | |
OWNERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 75 |
SECURITY OWNERSHIP OF MANAGEMENT . . . . . . . . . . . . . . | 76 |
REPORT OF THE AUDIT & RISK COMMITTEE . . . . . . . . . . . . . | 77 |
STATEMENT OF CORPORATE GOVERNANCE | |
PRACTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 78 |
Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 78 |
Board Mandate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 79 |
Position Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 80 |
Orientation and Continuing Education . . . . . . . . . . . . . . | 80 |
Ethical Business Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . | 80 |
Nomination of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . | 80 |
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 80 |
Other Board Committees . . . . . . . . . . . . . . . . . . . . . . . . . . | 80 |
Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 81 |
Term Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 81 |
Considerations of Representation of Women on the | |
Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 81 |
Executive Officer Diversity . . . . . . . . . . . . . . . . . . . . . . . . . | 81 |
CERTAIN RELATIONSHIPS AND RELATED | |
TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 82 |
ACCOUNTANTS' FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 83 |
OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 84 |
OTHER BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 84 |
DIRECTORS' APPROVAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 84 |
EXHIBIT A: USE OF NON-GAAP FINANCIAL MEASURES . . . | A-1 |
ESG HIGHLIGHTS | |
ENVIRONMENTAL, SOCIAL RESPONSIBILITY AND | |
HUMAN CAPITAL MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19 |
CORPORATE GOVERNANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . | 21 |
SHAREHOLDER ENGAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . | 37 |
PROXY SUMMARY
This summary highlights information contained elsewhere in this proxy statement and does not contain all of the information you should consider in making a voting decision. You should read the entire proxy statement carefully before voting. For information on the voting process and how to attend the Annual Meeting, please see About the Annual Meeting on page 1.
Fiscal 2022 Performance Highlights
April 1, 2021 - March 31, 2022 | ||
.37% | ||
4 | $16.25 | |
$15.57 | ||
.25% | $15.03 | |
11 | ||
$13.51 | ||
LGF.A | LGF.B |
35.8 Million
STARZ global subscribers*
(21% year-over-year growth)
- Including STARZPLAY Arabia, a non-consolidated equity method investee.
$766 Million
Film and television library revenue
for the trailing 12 months.
Slate of >100
Television Series
Includes scripted, unscripted,
Debmar-Mercury and 3 Arts series.
14 New Pickups | 100% Renewal Rate | 500 New Library | ||
New Lionsgate Television shows | 15/15 current Lionsgate Television | Titles | ||
picked up to series. | series renewed for additional | Added over 500 new library titles, | ||
seasons. | ||||
organically and through | ||||
acquisitions. | ||||
Meeting Information and Voting*
Meeting Date
September 13, 2022
Vote By Phone
You can vote by calling the number provided in your proxy card or voting instruction form.
Time
1:00 p.m. Pacific Time
Place
Dentons Canada
250 Howe Street,
20th Floor
Vancouver, British Columbia
V6C 3R8
Tablet or Smartphone
Scan this QR code to vote with your tablet or mobile device.
Vote By Internet
You can vote online at www.proxyvote.comor by following the instructions provided in your proxy card or voting instruction form.
Vote By Mail
Mark, sign and date your proxy card or voting instruction form and return it in the postage- paid envelope provided.
- You may also vote personally or by proxy by attending the Annual Meeting. If you hold shares through a bank, broker, trustee or other nominee who holds your shares, you cannot vote your shares at the Annual Meeting unless you have obtained a legal proxy from your bank, broker, trustee or other nominee who holds your shares.
Lions Gate 2022 Proxy Statement i
Annual Meeting Proposals
Matters to Be Voted On
Proposal
- Election of 12 directors.
- Re-appointmentof Ernst & Young LLP as our independent registered public accounting firm for fiscal 2023 and authorization of the Audit & Risk Committee to fix their remuneration.
- Advisory vote to approve executive compensation.
Board Vote | |
Recommendation | For More Information, see: |
FOR EACH NOMINEE | Proposal 1-page 7 |
FOR | Proposal 2-page 17 |
FOR | Proposal 3-page 18 |
At the Annual Meeting, we will also consider any other business that may properly come before our Annual Meeting and any continuations, adjournments or postponements thereof regardless of whether you attend the meeting.
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL GENERAL AND SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON SEPTEMBER 13, 2022
This proxy statement is available at www.proxyvote.com and on our website at http://investors.lionsgate.com/financialreports/annual- reports-and-proxy-statements/proxy-statements. The other information on our corporate website does not constitute part of this proxy statement.
- Lions Gate 2022 Proxy Statement
Attachments
- Original Link
- Original Document
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Disclaimer
Lions Gate Entertainment Corporation published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 22:03:13 UTC.
