SS&C Technologies Holdings, Inc.
SS&C Technologies Holdings Inc (Form: DEF 14A, Received: 04/14/2015 10:20:37)
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

(Rule 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

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x   Definitive Proxy Statement
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¨   Soliciting Material Pursuant to §240.14a-12
SS&C Technologies Holdings, Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement if Other than the Registrant)
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LOGO

SS&C TECHNOLOGIES HOLDINGS, INC.

80 Lamberton Road

Windsor, Connecticut 06095

April 14, 2015

Dear Stockholder:

You are cordially invited to attend the 2015 Annual Meeting of Stockholders of SS&C Technologies Holdings, Inc. to be held at 9:00 a.m., local time, on Thursday, May 28, 2015 at our offices located at 675 Third Avenue, New York, New York 10017.

At the 2015 annual meeting, you will be asked to (i) elect two Class II Directors to our Board of Directors for the ensuing three years; and (ii) ratify the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm. The Board recommends that you vote for each of the director nominees nominated by our Board and that you ratify the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm.

We hope you will be able to attend the 2015 annual meeting. Whether or not you plan to attend the 2015 annual meeting, it is important that your shares are represented. Therefore, we urge you to promptly vote your shares by completing, signing, dating and returning the enclosed proxy card in accordance with the instructions provided or by completing the voting instruction form provided to you by your bank, broker or other nominee.

 

Sincerely,
LOGO
WILLIAM C. STONE
Chairman of the Board & Chief Executive Officer

YOUR VOTE IS IMPORTANT

We urge you to promptly vote your shares by completing, signing, dating and returning the enclosed proxy card or by completing the voting instruction form provided to you by your bank, broker or other nominee.


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TABLE OF CONTENTS

 

2014 PERFORMANCE HIGHLIGHTS

     2   

HIGHLIGHTS OF PROPOSALS BEING VOTED UPON

     2   

PROPOSAL 1 ELECTION OF DIRECTORS

     3   

BOARD OF DIRECTORS AND MANAGEMENT

     4   

Information Regarding Directors and Director Nominees

     4   

Corporate Governance Matters

     8   

Board Determination of Independence

     8   

Stockholders Agreement

     8   

Director Nomination Process

     8   

Board Meetings and Attendance

     9   

Director Attendance at Annual Meeting of Stockholders

     9   

Board Leadership Structure

     9   

Board Committees

     10   

Risk Oversight

     12   

Communications with the Board

     12   

Code of Business Conduct and Ethics

     13   

Compensation Committee Interlocks and Insider Participation

     13   

Executive Officers Who Are Not Directors

     13   

EXECUTIVE AND DIRECTOR COMPENSATION

     15   

Compensation Discussion and Analysis

     15   

Components of Our Executive Compensation

     16   

Base Salary

     16   

Annual Cash Bonus

     17   

Stock Option Awards

     20   

Benefits and Perquisites

     20   

Severance and Change of Control Benefits

     20   

Accounting and Tax Implications

     22   

Report of the Compensation Committee

     22   

Summary Compensation Table

     23   

CEO Employment Agreement

     24   

2014 Grants of Plan-Based Awards

     26   

2014 Option Exercises and Stock Vested

     27   

Outstanding Equity Awards at 2014 Fiscal Year-End

     28   

Equity Compensation Plan Information

     29   

Potential Payments Upon Termination or Change of Control

     30   

Other Named Executive Officers

     32   

2014 Director Compensation

     33   

PROPOSAL 2 RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

     35   

Report of the Audit Committee of the Board of Directors

     37   

OWNERSHIP OF OUR COMMON STOCK

     38   

Section 16(a) Beneficial Ownership Reporting Compliance

     41   

RELATED PERSON TRANSACTIONS

     42   

Policies and Procedures for Related Person Transactions

     42   

Related Person Transactions

     43   

INFORMATION ABOUT THE 2015 ANNUAL MEETING

     44   

Voting Procedures

     44   

Revocation of Proxies

     45   

Stockholders Entitled to Vote

     45   

Quorum

     45   

Votes Required

     46   

Solicitation of Proxies

     46   

OTHER MATTERS

     46   

Stockholder Proposals and Director Nominations

     47   

Householding of Proxies

     47   

 

-i-


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SS&C TECHNOLOGIES HOLDINGS, INC.

80 Lamberton Road

Windsor, Connecticut 06095

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

To Be Held on May 28, 2015

The 2015 Annual Meeting of Stockholders of SS&C Technologies Holdings, Inc. will be held on Thursday, May 28, 2015 at 9:00 a.m., local time, at our offices located at 675 Third Avenue, New York, New York 10017, to consider and act upon the following matters:

1. To elect two Class II Directors to our Board of Directors, each to serve for a term ending at the 2018 annual meeting, and until his successor has been duly elected and qualified;

2. To ratify the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2015; and

3. To transact such other business as may properly come before the 2015 annual meeting and any adjournment thereof.

Stockholders of record at the close of business on April 1, 2015, the record date for the 2015 annual meeting, are entitled to notice of and to vote at the meeting.

Your vote is important, regardless of the number of shares you own. Whether or not you plan to attend the 2015 annual meeting personally, we hope you will take the time to vote your shares. If you are a stockholder of record, you may vote by completing, signing, dating and returning the enclosed proxy card in the envelope provided. If your shares are held in “street name,” meaning they are held for your account by a bank, broker or other nominee, you will receive instructions from the holder of record that you must follow for your shares to be voted. Even if you plan to attend the 2015 annual meeting, please vote now using one of the above methods. You can change your vote at the meeting if you choose to do so.

 

By Order of the Board of Directors,
LOGO
PAUL G. IGOE
Senior Vice President, General Counsel & Secretary

Dated: April 14, 2015


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SS&C TECHNOLOGIES HOLDINGS, INC.

80 Lamberton Road

Windsor, Connecticut 06095

 

 

Proxy Statement for the 2015 Annual Meeting of Stockholders

 

 

To Be Held on May 28, 2015

 

 

Our 2015 Annual Meeting of Stockholders will be held on Thursday, May 28, 2015, at 9:00 a.m., local time, at our offices located at 675 Third Avenue, New York, New York 10017. For directions to our offices, please visit the 2015 annual meeting page on our website at http://www.ssctech.com/2015annualmeeting. If you have any questions about the 2015 annual meeting, please contact Paul G. Igoe, our Corporate Secretary, by telephone at (860) 298-4832 or by sending a written request for information addressed to Paul G. Igoe at our principal executive offices located at 80 Lamberton Road, Windsor, Connecticut 06095.

See “Information About the 2015 Annual Meeting” beginning on page 44 for details on the voting process and how to attend the 2015 annual meeting.

Information About this Proxy Statement

You have received this proxy statement because the Board of Directors of SS&C Technologies Holdings, Inc., which we refer to as SS&C Holdings, SS&C or the Company, is soliciting your proxy to vote your shares at the 2015 annual meeting and at any adjournment or postponement of the 2015 annual meeting. This proxy statement includes information we are required to provide to you under the rules of the Securities and Exchange Commission, or SEC, and is designed to assist you in voting your shares. Only stockholders of record at the close of business on April 1, 2015 are entitled to receive notice of, and to vote at, the 2015 annual meeting.

 

Important Notice Regarding Availability of

Proxy Materials for the 2015 Annual Meeting of Stockholders to be Held on May 28, 2015

We are first mailing this proxy statement and the accompanying proxy on or about April 14, 2015 to our stockholders of record as of April 1, 2015. We are also mailing our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 to such stockholders concurrently with this proxy statement. We will furnish copies of the exhibits to our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 upon written request of any stockholder and the payment of an appropriate processing fee. Please address all such requests to Investor Relations at 80 Lamberton Road, Windsor, Connecticut 06095.

This proxy statement and our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 are available for viewing, printing and downloading at http://www.ssctech.com/2015annualmeeting . This proxy statement and our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 are also available on the SEC’s website at http://www.sec.gov.

 

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2014 PERFORMANCE HIGHLIGHTS

We believe the Company’s 2014 performance was exceptional, as evidenced by the following results:

 

   

Our total shareholder return (“TSR”) 1 for 2014 was 32% and our aggregate TSR for the period from January 1, 2012 to December 31, 2014 was 224%. For comparison purposes, the TSR for the NASDAQ Composite Total Return Index was 15% and 89% for the same periods.

 

   

Our total revenues for 2014 were $767.9 million, as compared to 2013 total revenues of $712.7 million and 2012 total revenues of $551.8 million, an increase of 8% and 39%, respectively.

 

   

Our Adjusted Consolidated EBITDA (discussed on page 19) increased by $28.2 million in 2014 from 2013, an increase of 10%.

 

   

Our market capitalization grew by $1.3 billion during 2014, an increase of 35%.

 

   

Net cash provided by operating activities was $252.5 million in 2014. This is an improvement of $44.2 million or 21% from 2013.

 

   

We acquired DST Global Solutions Ltd., a subsidiary of DST Systems, Inc. and a provider of investment and fund accounting software, for $95 million on December 1, 2014.

HIGHLIGHTS OF PROPOSALS BEING VOTED UPON

This summary highlights information that is relevant to certain proposals being voted on at the Annual Meeting. Additional discussion of these proposals is contained elsewhere in this proxy statement, which we encourage you to review in its entirety.

Proposal 1:     Election of Directors.

The Board recommends that you vote “FOR” the election of our two Class II Directors whose terms expire at the 2015 annual meeting: William A. Etherington and Jonathan E. Michael. Mr. Etherington currently serves as Chair of our Audit and Compensation Committees and Mr. Michael currently serves on our Audit and Nominating Committees. See “Information Regarding Directors and Director Nominees” beginning at page 4 for additional discussion of our director nominees and their qualifications.

Proposal 2:     Ratification of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2015.

The Audit Committee has appointed the firm of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2015, which we refer to as fiscal 2015. This appointment is being presented to the stockholders for ratification at the 2015 annual meeting. We encourage you to vote “FOR” ratification of PricewaterhouseCoopers LLP as our independent registered public accounting firm.

 

1   TSR is the change in the stock price over a given period plus dividends paid, divided by the stock price at the beginning of a period, expressed as a percentage.

 

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PROPOSAL 1

ELECTION OF DIRECTORS

Our certificate of incorporation provides for a classified Board. This means our Board is divided into three classes, with each class having as nearly as possible an equal number of directors. The term of service of each class of directors is staggered so that the term of one class expires at each annual meeting of the stockholders.

Our Board currently consists of eight members, divided into three classes as follows:

 

   

Class I is comprised of Normand A. Boulanger, David A. Varsano and Michael J. Zamkow, each with a term ending at the 2017 annual meeting;

 

   

Class II is comprised of William A. Etherington and Jonathan E. Michael, each with a term ending at the 2015 annual meeting; and

 

   

Class III is comprised of Michael E. Daniels, Allan M. Holt and William C. Stone, each with a term ending at the 2016 annual meeting.

At each annual meeting of stockholders, directors are elected for a full term of three years to succeed those directors whose term is expiring. Messrs. Etherington and Michael are current directors whose terms expire at the 2015 annual meeting. Each of these directors has been nominated by the Nominating Committee (and his nomination has been ratified by the Board) for re-election as a Class I director, with a term ending at the 2018 annual meeting.

Unless otherwise instructed in the proxy, all proxies will be voted “FOR” the election of each of the nominees identified above to a three-year term ending at the 2018 annual meeting, each such nominee to hold office until his successor has been duly elected and qualified. Stockholders who do not wish their shares to be voted for one or both of these two nominees may so indicate by striking out the name of such nominee(s) on the proxy card. Each of the nominees has indicated his willingness to serve on our Board, if elected. If either nominee should be unable to serve, the person acting under the proxy may vote the proxy for a substitute nominee designated by our Board. We do not contemplate that either of the two nominees will be unable to serve if elected.

A plurality of the shares of common stock present in person or represented by proxy at the 2015 annual meeting and entitled to vote is required to elect each nominee as a director.

T HE B OARD OF D IRECTORS R ECOMMENDS T HAT Y OU V OTE “FOR” T HE E LECTION OF W ILLIAM A. E THERINGTON AND J ONATHAN E. M ICHAEL .

 

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BOARD OF DIRECTORS AND MANAGEMENT

Information Regarding Directors and Director Nominees

Our certificate of incorporation provides for the classification of our Board into three classes, each having as nearly an equal number of directors as possible. The terms of service of the three classes are staggered such that the term of one class expires each year.

Our Board currently consists of eight directors. Class I consists of Normand A. Boulanger, David A. Varsano and Michael J. Zamkow, each with a term ending at the 2017 annual meeting. Class II consists of William A. Etherington and Jonathan E. Michael, each with a term ending at the 2015 annual meeting. Class III consists of Michael E. Daniels, Allan M. Holt, and William C. Stone, each with a term ending at the 2016 annual meeting. One class is elected each year and members of each class hold office for three-year terms. On June 20, 2014, the Board appointed Michael J. Zamkow as a Class I director. Mr. Zamkow was recommended to our Nominating Committee as a candidate by our Chairman.

Our Nominating Committee has recommended, and the Board has nominated, Messrs. Etherington and Michael for election at the 2015 annual meeting as Class II directors, each to serve until the 2018 annual meeting and until his successor has been duly elected and qualified. Each of the nominees is currently a member of our Board of Directors.

 

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The following table and biographical descriptions provide information relating to each director and director nominee, including his age and period of service as a director of our company, his committee memberships, his business experience for at least the past five years, including directorships at other public companies, and certain other information.

 

Name    Age      Present Principal Employment and Prior Business Experience

Class I Directors

(terms expiring at the 2017 annual meeting)

     

Normand A. Boulanger

President and Chief Operating Officer

     53       Mr. Boulanger has served as our President and Chief Operating Officer since October 2004. Prior to that, Mr. Boulanger served as our Executive Vice President and Chief Operating Officer from October 2001 to October 2004, Senior Vice President, SS&C Direct from March 2000 to September 2001, Vice President, SS&C Direct from April 1999 to February 2000, Vice President of Professional Services for the Americas, from July 1996 to April 1999, and Director of Consulting from March 1994 to July 1996. Prior to joining SS&C, Mr. Boulanger served as Manager of Investment Accounting for The Travelers from September 1986 to March 1994. Mr. Boulanger was elected as one of our directors in February 2006. The Board has concluded that Mr. Boulanger should serve as a director because he has substantial knowledge and experience regarding our operations, employees, targeted markets, strategic initiatives and competitors.

David A. Varsano

Audit Committee

Compensation Committee

     53       Mr. Varsano was elected as one of our directors in March 2011. He is currently the Chairman of the Board and Chief Executive Officer of Pacific Packaging Products, a company specializing in industrial packaging and related solutions and supply chain management services, which he joined in September 1999. Prior to joining Pacific Packaging Products, Mr. Varsano served as the Chief Technology Officer and Vice President, Software Development of SS&C from 1995 to 1999 and as Manager of SS&C Direct from 1998 to 1999. Mr. Varsano currently serves as Chairman of the Board of Directors of Packaging Distributors of America. Mr. Varsano previously served on the Board of Directors of Aviv Centers for Living. The Board has concluded that Mr. Varsano should serve as a director because he has a broad range of experience relevant to our business and a strong understanding of software architectures.

Michael J. Zamkow

     59       Mr. Zamkow was elected one of our directors in June 2014. He retired—after a 17 year career—from Goldman Sachs in November 2001, where he was a partner from 1994 to 2001. From 1999, Mr. Zamkow was responsible for Goldman Sachs’ fixed income, currency and commodities business. He is currently a member of the Board of Trustees of Northeastern University. Mr. Zamkow previously served on the Boards of Directors of the Futures Industry Association and the London Clearing House. The Board has concluded that Mr. Zamkow should serve as a director because he has extensive experience in the financial services industry.

 

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Name    Age      Present Principal Employment and Prior Business Experience

Class II Directors, Nominees to be elected at the 2015 annual meeting

(terms expiring at the 2015 annual meeting)

     

William A. Etherington

Audit Committee

Compensation Committee

     73       Mr. Etherington was elected as one of our directors in May 2006. Mr. Etherington retired—after a 38-year career—from International Business Machines Corporation in September 2001 as Senior Vice President and Group Executive, Sales and Distribution. He currently serves on the Board of Directors of Onex Corporation and is the Chairman of the Board of Directors of Celestica Inc. He is the retired non-executive Chairman of the Board of Directors of the Canadian Imperial Bank of Commerce (CIBC), where he served as a director from 1994 to 2009, and also previously served on the Board of Directors of MDS/Nordion Inc. The Board has concluded that Mr. Etherington should serve as a director because he brings experience as a board and committee member of public companies, a detailed understanding of the computer and information services industry, and expertise in the management of complex technology organizations.

Jonathan E. Michael

Audit Committee

Nominating Committee

     61       Mr. Michael was elected as one of our directors in April 2010. He currently serves as Chairman, President and Chief Executive Officer of RLI Corp., a publicly traded specialty insurance company, which he joined in 1982. Mr. Michael has held various positions at RLI Corp., including President and Chief Operating Officer, Executive Vice President and Chief Financial Officer. Prior to joining RLI Corp., Mr. Michael was associated with the accounting firm Coopers & Lybrand. He currently serves on the Boards of Directors of RLI Corp. and Maui Jim, Inc. Mr. Michael previously served on the Board of Directors of Fieldstone Investment Corporation from 2003 to 2007. The Board has concluded that Mr. Michael should serve as a director because he has extensive experience in the financial services industry, including companies that we seek to target as clients, as well as extensive operational experience as a director and officer of financial services and insurance companies.

 

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Name    Age      Present Principal Employment and Prior Business Experience

Class III Directors

(terms expiring at the 2016 annual meeting)

     

Michael E. Daniels

Nominating Committee

     59       Mr. Daniels was elected as one of our directors in October 2013. Mr. Daniels retired—after a 36-year career—from International Business Machines Corporation in March 2013 as Senior Vice President and Group Executive IBM Global Services. Mr. Daniels currently serves on the Boards of Directors of Tyco International Ltd. and Thomson Reuters and is a Trustee of The College of the Holy Cross. The Board has concluded that Mr. Daniels should serve as a director because he brings experience as a board and committee member of a public company, a detailed understanding of the computer and information services industry, and expertise in the management of complex technology organizations.

Allan M. Holt

Compensation Committee

Nominating Committee

     63       Mr. Holt was elected as one of our directors in February 2006. He currently serves as a Managing Director and Co-head of the U.S. Buyout Group of The Carlyle Group, which he joined in 1991. He previously was head of Carlyle’s Global Aerospace, Defense, Technology and Business/Government Services Group. Prior to joining Carlyle, Mr. Holt spent three and a half years with Avenir Group, Inc., an investment and advisory group. From 1984 to 1987, Mr. Holt was Director of Planning and Budgets at MCI Communications Corporation. He currently serves on the Boards of Directors of Axalta Coating Systems, Booz Allen Hamilton Holding Corporation, HCR ManorCare, Inc. and NBTY, Inc. Mr. Holt previously served on the Boards of Directors of Aviall, Inc., Fairchild Imaging, Landmark Aviation, HD Supply, Inc., MedPointe, Inc., Sequa Corp., Standard Aero Holdings, Inc., The Nielsen Company and Vought Aircraft Industries, Inc. and on the supervisory board of The Nielsen Company B.V. The Board has concluded that Mr. Holt should serve as a director because he brings extensive experience regarding the management of public and private companies and the financial services industry.

William C. Stone

Chairman and Chief Executive Officer

     60       Mr. Stone founded SS&C Technologies, Inc., or SS&C, the primary operating company and wholly owned direct subsidiary of SS&C Technologies Holdings, Inc., in 1986 and has served as Chairman of the Board of Directors and Chief Executive Officer since our inception. He also has served as our President from inception through April 1997 and again from March 1999 until October 2004. Prior to founding SS&C, Mr. Stone directed the financial services consulting practice of KPMG LLP, an accounting firm, in Hartford, Connecticut and was Vice President of Administration and Special Investment Services at Advest, Inc., a financial services company. The Board has concluded that Mr. Stone should serve as a director because, as our founder and Chief Executive Officer—as well as a principal stockholder, Mr. Stone provides a critical contribution to the Board reflecting his detailed knowledge of our company, our employees, our client base, our prospects, the strategic marketplace and our competitors.

 

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Corporate Governance Matters

We believe that good corporate governance and fostering an environment of high ethical standards are important for us to achieve business success and to create value for our stockholders. Our Board periodically reviews our corporate governance practices in light of regulatory developments and practices at other public companies and makes changes that it believes are in the best interests of the Company and its stockholders.

Board Determination of Independence

Under the applicable rules of the NASDAQ Stock Market, a director will only qualify as an “independent director” if, in the opinion of our Board, that person does not have a relationship which would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Our Board has determined that none of Messrs. Daniels, Etherington, Holt, Michael, Varsano or Zamkow has a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is an “independent director” as defined under Rule 5605(a)(2) of NASDAQ.

Stockholders Agreement

The Company is a party to a Stockholders Agreement, as amended, which we refer to as the Stockholders Agreement, with William C. Stone, our Chairman and Chief Executive Officer. The Stockholders Agreement entitles Mr. Stone to nominate four directors, one of whom shall be Mr. Stone for so long as he is our Chief Executive Officer. For more information on the Stockholders Agreement, see “Related Person Transactions—Stockholders Agreement.”

Director Nomination Process

The process followed by the Nominating Committee to identify and evaluate director candidates may include requests to Board members and others for recommendations, meetings from time to time to evaluate biographical information and background material relating to potential candidates, and interviews of selected candidates by members of the Nominating Committee.

The Nominating Committee considers recommendations for director nominees suggested by its members, other directors, management and other interested parties. Stockholders may recommend individuals to the Nominating Committee for consideration as potential director candidates by submitting their names, together with appropriate biographical information and background material, to the Nominating Committee c/o Corporate Secretary, SS&C Technologies Holdings, Inc., 80 Lamberton Road, Windsor, Connecticut 06095. Assuming that appropriate biographical information and background material is provided on a timely basis, the Nominating Committee will evaluate stockholder-recommended candidates by following substantially the same process and applying substantially the same criteria as it follows for candidates submitted by others.

In addition, stockholders also have the right under our By-laws to directly nominate director candidates, without any action or recommendation on the part of the Nominating Committee or the Board, by following the procedures set forth in our By-laws and described under “Stockholder Proposals and Director Nominations” below.

 

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Criteria and Diversity

In considering whether to recommend any particular candidate for inclusion in the Board’s slate of recommended director nominees, the Nominating Committee applies the criteria specified in its charter. These criteria include the candidate’s integrity, honesty, adherence to ethical standards, demonstrated business acumen, experience, ability to exercise sound judgments in matters that relate to the current and long-term objectives of the Company, ability to contribute positively to the decision-making processes of the Company, commitment to understanding the Company and its industry and to regularly attending and participating in meetings of the Board and its committees, ability to understand the sometimes conflicting interests of the various constituencies of the Company, and the absence of a conflict of interest. The Nominating Committee does not assign specific weights to particular criterion and no particular criterion is a prerequisite for any prospective nominee. In terms of criteria for composition of the Board, the Nominating Committee considers the backgrounds and qualifications of the directors as a group with a goal of providing a significant breadth of experience, knowledge and abilities to assist the Board in fulfilling its responsibilities.

Although the Nominating Committee considers the value of diversity on the Board, it has not adopted a written policy with regard to the consideration of diversity when evaluating candidates for director. However, in practice, the Nominating Committee considers diversity of viewpoint, professional experience, education and skill in assessing candidates for the Board to ensure breadth of experience, knowledge and abilities within the Board. Our Board’s priority in the selection of Board members is identification of members who will further the interests of our stockholders through their management experience, knowledge of our business, understanding of the competitive landscape, and familiarity with our targeted markets.

The director biographies on pages 5 to 7 describe each nominee’s experience, qualifications, attributes and skills that led the Board to conclude that he should continue to serve as a member of our Board. Our Board believes that each of the nominees has realized significant professional and personal achievements, and possesses the background, talents and experience that are necessary for the Company’s success and the creation of stockholder value.

Board Meetings and Attendance

During the fiscal year ended December 31, 2014, which we refer to as fiscal 2014, our Board met four times and acted by unanimous written consent in lieu of a meeting three times. During fiscal 2014, the Audit Committee held six regular meetings and acted by unanimous written consent in lieu of a meeting one time; the Compensation Committee held two regular meetings and acted by unanimous written consent in lieu of a meeting one time; and the Nominating Committee acted by unanimous written consent in lieu of a meeting two times. Each of our directors attended at least 75% of the aggregate of the total number of meetings of the Board and of the Board committees of which he was a member during fiscal 2014.

Director Attendance at Annual Meeting of Stockholders

We do not have a formal policy regarding directors’ attendance at annual meetings, but all of our directors are encouraged to attend our annual meetings. All of our directors attended our 2014 annual meeting of stockholders.

Board Leadership Structure

Mr. Stone has served as Chairman of the Board of Directors and Chief Executive Officer since our inception in 1986, and the provisions of the Stockholders Agreement require that so long as

 

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Mr. Stone is a member of our Board and the Chief Executive Officer of the Company, he shall serve as Chairman of the Board. This Board leadership structure is commonly utilized by public companies in the United States, and we believe that this leadership structure has been effective for us. Having one person serve as both Chief Executive Officer and Chairman of the Board shows our employees, customers and other constituencies that we are under strong leadership, with a single person setting the tone and having primary responsibility for managing our operations. We also believe that this leadership structure eliminates the potential for duplication of efforts and inconsistent actions and facilitates open communication between management and our Board. We do not have a lead independent director. We recognize that different board leadership structures may be appropriate for companies with different histories or varying equity ownership structures and percentages. However, we believe our current leadership structure is the optimal board leadership structure for us.

Board Committees

Our Board directs the management of our business and affairs, as provided by Delaware law, and conducts its business through meetings of the Board and three standing committees: the Audit Committee, the Compensation Committee and the Nominating Committee, each of which operates under a charter that has been approved by our Board. Each committee’s charter is posted on our website, at http://investor.ssctech.com/governance.cfm . In addition, from time to time, special committees may be established under the direction of the Board to address specific issues. The table below shows current membership and indicates the chairperson (*) for each of the standing Board committees.

 

Audit

 

Compensation

 

Nominating

William A. Etherington*

  William A. Etherington*   Allan M. Holt*

Jonathan E. Michael

  Allan M. Holt   Michael E. Daniels

David A. Varsano

  David A. Varsano   Jonathan E. Michael

Our Board has determined that all of the members of each of the Board’s three standing committees are independent as defined under the rules of NASDAQ, including, in the case of all members of the Audit Committee, the independence requirements contemplated by Rule 10A-3 under the Securities Exchange Act of 1934, as amended, or Exchange Act, and including, in the case of all members of the Compensation Committee, the independence requirements contemplated by Rule 10C-1 under the Exchange Act and NASDAQ rules.

Audit Committee

Our Audit Committee assists our Board in its oversight of the Company’s accounting and financial reporting processes and the audits of the Company’s financial statements. Our Audit Committee’s responsibilities, as set forth in its charter, include:

 

   

appointing, evaluating, retaining and, when necessary, terminating the engagement of our independent registered public accounting firm;

 

   

overseeing and assessing the independence of our independent registered public accounting firm;

 

   

setting the compensation of our independent registered public accounting firm and pre-approving all audit services to be provided to the Company;

 

   

overseeing the work of our independent registered public accounting firm, including through the receipt and consideration of reports from such firm;

 

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reviewing and discussing with management and the independent registered public accounting firm our annual and quarterly financial statements and related disclosures before such financial statements are filed with the SEC;

 

   

directing the independent registered public accounting firm to use its best efforts to perform all reviews of interim financial information prior to disclosure by the Company;

 

   

coordinating our Board’s oversight of internal control over financial reporting, disclosure controls and procedures and our code of business conduct and ethics;

 

   

overseeing our risk assessment and risk management policies;

 

   

discussing the Company’s policies with respect to risk assessment and risk management;

 

   

discussing generally the type and presentation of information to be disclosed in the Company’s earnings press releases, as well as financial information and earnings guidance provided to analysts, rating agencies and others;

 

   

establishing procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or audit matters and the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters;

 

   

reviewing the Company’s policies and procedures for reviewing and approving or ratifying “related person transactions” and conducting appropriate review and oversight of all related person transactions for potential conflict of interest situations; and

 

   

preparing the Audit Committee report required by SEC rules, which is included on page 37 of this proxy statement.

Our Board has determined that each of the members of its Audit Committee is an “audit committee financial expert” as that term is defined under the rules and regulations of the SEC.

Compensation Committee

Our Compensation Committee has overall responsibility for the Company’s compensation of management, incentive plans and compensation programs. Our Compensation Committee’s responsibilities, as set forth in its charter, include:

 

   

reviewing and approving, or making recommendations to our Board with respect to, the compensation of our Chief Executive Officer and our other executive officers;

 

   

reviewing, and making recommendations to our Board with respect to, incentive-compensation and equity-based plans that are subject to approval by our Board;

 

   

approving any tax-qualified, non-discriminatory employee benefit plans for which stockholder approval is not sought and pursuant to which options or stock may be acquired by officers, directors, employees or consultants of the Company;

 

   

administering all of the Company’s stock option, stock incentive, employee stock purchase and other equity-based plans including interpreting the terms of such plans and granting options and making awards under such plans;

 

   

reviewing and making recommendations to our Board with respect to director compensation;

 

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reviewing and discussing with management the Company’s “Compensation Discussion and Analysis” required by Item 402(b) of Regulation S-K, and considering whether it will recommend to our Board that the Compensation Discussion and Analysis be included in the Company’s Annual Report on Form 10-K, proxy statement on Schedule 14A or information statement on Schedule 14C;

 

   

preparing an annual report required by Item 407(e)(5) of Regulation S-K; and

 

   

in its discretion, retaining or obtaining the advice of compensation consultants, legal counsel or other advisors, and overseeing their work.

Nominating Committee

Our Nominating Committee has overall responsibility for developing Board membership. Our Nominating Committee’s responsibilities, as set forth in its charter, include:

 

   

identifying individuals qualified to become members of our Board and recommending to our Board the nominees for election as directors at any annual meeting of stockholders and the persons to be elected by the Board to fill any vacancies on the Board;

 

   

reviewing with the Board the requisite skills and criteria for new Board members as well as the composition of our Board as a whole; and

 

   

recommending to our Board the directors to be appointed to each committee of the Board.

The processes and procedures followed by the Nominating Committee in identifying and evaluating director candidates are described above under the heading “Director Nomination Process.” As described above, the Stockholders Agreement provides Mr. Stone with the right to appoint four directors, including himself.

Risk Oversight

Our management is responsible for risk management on a day-to-day basis. Our Audit Committee is responsible for overseeing our risk management function. While the Audit Committee has primary responsibility for overseeing risk management, our entire Board of Directors is actively involved in overseeing our risk management. Our Board and the Audit Committee fulfill their oversight role by discussing with management the policies and practices utilized by management in assessing and managing the risks and providing input on those policies and practices. We believe that the leadership structure of our Board supports effective risk management oversight due to our Chairman and Chief Executive Officer’s extensive knowledge and understanding of our business and, as noted in “Board Leadership Structure” above, because the combined role of Chairman and Chief Executive Officer facilitates communications between management and our Board.

Communications with the Board

Our Board welcomes the submission of any comments or concerns from stockholders and any interested parties. Communications should be in writing and addressed to our Corporate Secretary at our principal executive offices and marked to the attention of the Board or any of its committees, individual directors or non-management or independent directors as a group. All correspondence will be forwarded to the intended recipient(s), except that certain items that are unrelated to the duties and responsibilities of our Board (such as product inquiries and comments, new product suggestions,

 

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resumes and other forms of job inquiries, surveys, and business solicitations and advertisements) and material that is unduly hostile, threatening, illegal or similarly unsuitable will be excluded.

Code of Business Conduct and Ethics

We have adopted a written code of business conduct and ethics, referred to as the SS&C Code of Business Conduct and Ethics, which covers all directors, officers and employees and includes provisions relating to accounting and financial matters. The SS&C Code of Business Conduct and Ethics is available on our website at http://investor.ssctech.com/governance.cfm . If we make any substantive amendments to, or grant any waivers from, the code of ethics for any director or officer, we will disclose the nature of such amendment or waiver on our website at http://investor.ssctech.com/governance.cfm . or in a Current Report on Form 8-K filed with the SEC.

Compensation Committee Interlocks and Insider Participation

Messrs. Etherington, Holt and Varsano served on our Compensation Committee in fiscal 2014. No member of the Compensation Committee is or has been a current or former officer or employee of SS&C Holdings or had any related person transaction involving SS&C Holdings or any of its subsidiaries, except for Mr. Varsano who is a former employee of the Company. During fiscal 2014, Mr. Varsano recused himself from any action involving the compensation or grant of equity awards to the executive officers of the Company. None of our executive officers served as a director or a member of a compensation committee (or other committee serving an equivalent function) of any other entity, one of whose executive officers served as a director or member of our Compensation Committee during fiscal 2014.

Executive Officers Who Are Not Directors

Certain information regarding our executive officers, who are not also directors, is set forth below. Generally, our Board elects our officers annually, although the Board or an authorized committee of the Board may elect or appoint officers at other times.

 

Name    Age      Position(s)

Paul G. Igoe

     52       Senior Vice President, General Counsel and Secretary

Rahul Kanwar

     40       Senior Vice President and Managing Director of Alternative Assets

Patrick J. Pedonti

     63       Senior Vice President and Chief Financial Officer

Paul G. Igoe joined the Company in January 2013 and has served as our Senior Vice President, General Counsel and Secretary since March 2013. From September 2009 to December 2012, Mr. Igoe was the Vice President, General Counsel and Secretary of Lydall, Inc., a manufacturer of filtration media and thermal/acoustical products. From June 2001 to September 2009, Mr. Igoe was the Associate General Counsel and Assistant Secretary of Teradyne, Inc., a manufacturer of automatic test equipment for the semiconductor industry. Prior to Teradyne, Mr. Igoe was a Junior Partner in the Boston office of Wilmer Cutler Pickering Hale and Dorr LLP (formerly Hale and Dorr LLP).

Rahul Kanwar has served as our Senior Vice President and Managing Director, Alternative Assets since January 2011 and was designated as an executive officer in March 2013. Prior to that, Mr. Kanwar served as a managing director of SS&C since 2005. Prior to joining SS&C, Mr. Kanwar was employed by Eisner LLP where he was responsible for managing the Eisnerfast LLC fund administration business. Mr. Kanwar started his career in public accounting.

 

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Patrick J. Pedonti has served as our Senior Vice President and Chief Financial Officer since August 2002. Prior to that, Mr. Pedonti served as our Vice President and Treasurer from May 1999 to August 2002. Prior to joining SS&C, from January 1997 to May 1999, Mr. Pedonti was the Vice President and Chief Financial Officer for Accent Color Sciences, Inc., a company specializing in high-speed color printing.

 

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EXECUTIVE AND DIRECTOR COMPENSATION

Compensation Discussion and Analysis

Our executive compensation program is overseen and administered by our Compensation Committee, which currently consists of Messrs. Etherington, Holt and Varsano. Our Compensation Committee operates under a written charter adopted by our Board and discharges the responsibilities of the Board relating to the compensation of our executive officers. As of December 31, 2014, our named executive officers were Messrs. Stone, Boulanger, Pedonti, Kanwar and Igoe.

Executive compensation objectives

The primary objectives of the Compensation Committee with respect to executive compensation are to:

 

   

attract, retain and motivate the best possible executive talent;

 

   

reward successful performance by the named executive officers and the Company; and

 

   

align the interests of the named executive officers with those of our stockholders by providing long-term equity compensation.

To achieve these objectives, our Compensation Committee seeks to compensate our executives at levels it believes are competitive with those of other companies that compete with us for executive talent in our industry and in our region. However, we have not retained a compensation consultant to review our executive compensation practices, nor have we formally benchmarked our compensation against that of other companies. Our compensation program rewards our named executive officers based on a number of factors, including the Company’s operating results, the Company’s performance against budget, individual performance, prior-period compensation and prospects for individual growth. Changes in compensation are generally incremental in nature and do not vary widely from year to year, but follow a general trend of increasing compensation as our business and profits grow. Many of the factors that affect compensation are subjective in nature and not tied to peer group analyses, surveys by compensation consultants or other statistical criteria.

Process for administering our executive compensation practices

Our Compensation Committee has overall responsibility for administering our executive officer compensation program. Our Chief Executive Officer typically presents salary, bonus and equity compensation recommendations to the Compensation Committee and the Compensation Committee, in turn, considers his recommendations and exercises ultimate approval authority. Our Chief Executive Officer’s recommendations are based on his years of experience in the financial services and software industries and his desire to motivate the executive officers and ensure their commitment to the Company. For each executive officer, including himself, our Chief Executive Officer prepares a written description for our Compensation Committee of the individual’s performance during the prior year and recommends salary and bonus amounts based upon their responsibilities and contributions to the Company’s performance. For compensation of executive officers other than our Chief Executive Officer, our Compensation Committee considers our Chief Executive Officer’s recommendations and discusses his reviews and recommendations with him as part of its deliberations. For our Chief Executive Officer’s compensation, the Compensation Committee considers his recommendations and generally conducts its deliberations without him present. In this, as in other compensation matters, the

 

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Compensation Committee exercises its independent judgment. After due consideration, the Compensation Committee accepted the Chief Executive Officer’s recommendations for 2014 executive officer cash bonuses and 2015 executive officer base salaries.

We last provided stockholders with a “say on pay” advisory vote on our executive compensation in 2014. At our 2014 annual meeting of stockholders, stockholders expressed substantial support for the compensation of our named executive officers, with approximately 89% of the votes cast voting for approval of the “say on pay” advisory vote on executive compensation. In establishing 2014 executive compensation, the Compensation Committee considered the results of the 2014 advisory vote as well as the other factors described above. Given the significant support for our named executive officer compensation as expressed in the 2014 “say on pay” advisory vote, the Compensation Committee did not make any changes to our executive compensation program and policies as a result of such vote. Our stockholders will again have a “say on pay” advisory vote at the 2017 annual meeting.

Components of Our Executive Compensation

The primary elements of our executive compensation are:

 

   

base salary;

 

   

discretionary annual cash bonuses;

 

   

stock option awards;

 

   

perquisites; and

 

   

severance and change of control benefits.

We have no formal or informal policy or target for allocating compensation between long-term and short-term compensation, between cash and non-cash compensation or among the different forms of non-cash compensation. Instead, our Compensation Committee (based in part on input from our Chief Executive Officer) determines subjectively what it believes to be the appropriate level and mix of the various compensation components. While we describe below the connection between each element of executive compensation and particular compensation objectives, we believe that each element promotes multiple compensation objectives.

Base Salary

Base salary is used to recognize the experience, skills, knowledge and responsibilities required of all our employees, including our executive officers. In establishing base salaries for 2014, our Compensation Committee considered a variety of factors, including the seniority of the individual, the level of the individual’s responsibility, the ability to replace the individual, the individual’s tenure at the Company, relative pay among the executive officers, and our Chief Executive Officer’s input. Generally, we believe that executive base salaries should grow incrementally over time and that more of the “up side” of compensation should rest with cash bonuses and long-term equity incentive compensation. In the case of Mr. Stone, his 2010 employment agreement, as in effect during 2014, stipulates that his base salary cannot be less than $750,000 per year.

Base salaries are reviewed at least annually by our Compensation Committee and are adjusted from time to time to realign salaries with market levels after taking into account the performance of the Company and each executive officer’s responsibilities, performance and experience. In March 2014,

 

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our Compensation Committee established the 2014 base salaries of our executive officers as follows: Mr. Stone, $875,000, Mr. Pedonti, $350,000, Mr. Boulanger, $550,000, Mr. Kanwar, $475,000, and Mr. Igoe, $260,000. In March 2015, our Compensation Committee evaluated the base salaries of executive officers and decided not to make any changes from the 2014 levels.

Annual Cash Bonus

The payment of annual cash bonuses to executive officers and other employees is discretionary, and for our executive officers, subject to the terms of our Executive Bonus Plan (the “Bonus Plan”) approved by our stockholders at our 2014 annual meeting. Annual cash bonuses are generally provided to employees whether or not we meet our budgeted results, but the amount available for bonuses to all employees, including the executive officers, varies according to our financial results. Annual cash bonuses are intended to compensate for strategic, operational and financial successes of the Company as a whole, as well as individual performance and growth potential. Other than for our named executive officers, for whom maximum bonus amounts are established under the terms of our Bonus Plan based on our performance, the annual cash bonuses are not tied to the achievement of specific results or pre-established financial metrics or performance goals, and no formula exists for determining the amount of bonuses for employees or executive officers.

For 2014, our overall executive officer bonus pool was established based on 5% of Adjusted Consolidated EBITDA (as defined below). Our Compensation Committee has overall authority for determining 2014 annual bonus amounts and considers proposals from the Chief Executive Officer for executive officer bonus allocations, including his own. The Compensation Committee made a final decision with respect to 2014 annual bonuses in March 2015. In making bonus recommendations to the Compensation Committee for the executive officers, our Chief Executive Officer, after taking into account the positive or negative impact of events outside the control of management or an individual executive, made a subjective judgment of each executive’s performance in the context of a number of considerations, including the overall economy and our financial performance, revenues and financial position going into the new fiscal year, each executive’s (including his own) work in managing the business, establishing internal controls, mentoring staff, completing and integrating acquisitions, reducing costs, responding to market conditions and maintaining our profitability. Mr. Stone’s employment agreement as in effect for 2014 stipulates that his minimum annual bonus must be at least $500,000.

Mr. Stone’s bonus for 2014 was $5,000,000. The Committee’s approval of Mr. Stone’s bonus took into account our profitability, his successful recruitment of new managers, his efforts to increase our revenue from $713 million in 2013 to $768 million in 2014 and our Adjusted Consolidated EBITDA from $292 million in 2013 to $320 million in 2014, the growth of our market capitalization from $3.6 billion in the first quarter of 2014 to over $5.0 billion in the first quarter of 2015, his continued search for new acquisitions including the completed acquisition of DST Global Solutions Limited (“DST”) in December 2014 and the in-process acquisition of Advent Software, Inc. (“Advent”) which was signed in February 2015, and his maintenance of high-level relationships with our key clients.

Mr. Pedonti’s bonus for 2014 was $950,000. The Committee’s approval of Mr. Pedonti’s bonus took into account his solid management skills, his expanded role in personnel and investor relations matters, his role in negotiating and implementing the DST and Advent acquisitions, his responsibility for maintaining our internal controls and his success in building a strong finance team.

 

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Mr. Boulanger’s bonus for 2014 was $1,900,000. The Committee’s approval of Mr. Boulanger’s bonus took into account his responsibility for our day-to-day business operations across the organization, his assumption of responsibility for supervising the Company’s international operations, his contributions to our 2014 financial results, including increasing revenues from fiscal 2013 to fiscal 2014, his role in implementing the DST acquisition, and his attention to his overall executive management team.

Mr. Kanwar’s bonus for 2014 was $1,400,000. The Committee’s approval of Mr. Kanwar’s bonus took into account his responsibility for our fund services business, his contributions to our 2014 financial results, and his attention to his overall executive management team.

Mr. Igoe’s bonus for 2014 was $250,000. The Committee’s approval of Mr. Igoe’s bonus took into account his overall management of the legal department and responsibility for adherence to the internal budget, his instrumental role in directing the legal work for our acquisitions of DST and Advent, and his efforts in overseeing and administering litigation in which the Company is involved.

These decisions reflect the practice that our Compensation Committee does not fix a target bonus for the succeeding year; rather, as noted above, subject to the terms of the Bonus Plan, it draws on subjective factors and executive officer performance evaluations in arriving at its bonus decisions.

 

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The pool of money available for non-executive officer employee bonuses is determined by Mr. Stone after our Adjusted Consolidated EBITDA for the preceding fiscal year is determined. In determining the pool available for employee bonuses, Mr. Stone takes into account the following material factors: Adjusted Consolidated EBITDA; growth in Adjusted Consolidated EBITDA over the preceding year; minimum Adjusted Consolidated EBITDA required to ensure debt covenant compliance; our short-term cash needs; and any improvement or deterioration in our strategic market position. The bonus pool for executive officers is determined under the terms of our Bonus Plan, which, for 2014, was 5% of Adjusted Consolidated EBITDA, or $16,005,650. Adjusted Consolidated EBITDA is a non-GAAP financial measure used in key financial covenants contained in our senior credit facilities, which are material facilities supporting our capital structure and providing liquidity to our business. Adjusted Consolidated EBITDA is defined as earnings before interest, taxes, depreciation and amortization (EBITDA), further adjusted to exclude stock compensation expense, unusual items and other adjustments permitted in calculating covenant compliance under the senior credit facilities, excluding acquired EBITDA. Adjusted Consolidated EBITDA does not represent net income or cash flow from operations as those terms are defined by GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The following is a reconciliation of net income to Adjusted Consolidated EBITDA for fiscal 2014.

 

(in thousands)    Year ended
December 31, 2014
 

Net income

                     $    131,127   

Interest expense, net

     25,472   

Income tax provision

     46,527   

Depreciation and amortization

     99,831   
  

 

 

 

EBITDA

     302,957   

Purchase accounting adjustments (1)

     476   

Capital-based taxes

     6   

Unusual or non-recurring charges (gains) (2)

     4,876   

Acquired EBITDA (3)

     11,405   

Stock-based compensation

     11,483   

Other (4)

     315   
  

 

 

 

Consolidated EBITDA

     331,518   

Less: acquired EBITDA

     (11,405)   
  

 

 

 

Adjusted Consolidated EBITDA

     $320,113   
  

 

 

 

 

 

  (1) Purchase accounting adjustments include (a) an adjustment to increase rent expense by the amount that would have been recognized if lease obligations were not adjusted to fair value at the date of acquisitions and (b) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisitions.

 

  (2) Unusual or non-recurring charges include foreign currency gains and losses, proceeds from legal and other settlements, severance expenses and other one-time expenses, such as expenses associated with facilities consolidations and acquisitions.

 

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  (3) Acquired EBITDA reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period.

 

  (4) Other includes the non-cash portion of straight-line rent expense.

Stock Option Awards

Our Compensation Committee believes that equity-based incentive compensation is an important component of executive compensation. In 2014, our executive officers were granted only time-based stock options subject to vesting over four years from the date of grant.

In December 2014, we awarded our named executive officers long-term incentive compensation under our 2014 Stock Option Plan in the form of time-based stock options to purchase an aggregate of 450,000 shares of our common stock. Of these option grants, Mr. Stone received an option to purchase 190,000 shares of our common stock, Mr. Pedonti received an option to purchase 65,000 shares of our common stock, Mr. Boulanger received an option to purchase 90,000 shares of our common stock, Mr. Kanwar received an option to purchase 80,000 shares of our common stock, and Mr. Igoe received an option to purchase 25,000 shares of our common stock. The number of options was subjectively determined by the Compensation Committee based on an assessment of the relative contributions and efforts of each executive officer. The options have an exercise price of $56.53 per share, which was equal to the closing price of our common stock as reported on The NASDAQ Global Select Market on the date of the grant.

The options awarded in December 2014 vest 25% on the first anniversary of grant and 1/36 th each month thereafter until fully vested on the fourth anniversary of grant, subject to acceleration of vesting in connection with a change of control event and the other terms and conditions set forth in the plan and the award agreements, including that the recipient is an employee in good standing on each respective vesting date.

Benefits and Perquisites

We offer a variety of benefit programs to all eligible employees, including our executive officers. Our executive officers generally are eligible for the same benefits on the same basis as other employees, including medical, dental and vision benefits, life insurance coverage and short- and long-term disability coverage. All eligible employees are also able to contribute to our 401(k) plan and receive matching company contributions under the plan. In addition, our executive officers are entitled to reimbursement for reasonable business travel and other expenses incurred during the performance of their duties in accordance with our expense reimbursement policy.

We limit the use of perquisites as a method of compensation and provide our executive officers with only those perquisites that we believe are reasonable and consistent with our overall compensation program to better enable us to attract and retain talented employees for key positions.

Severance and Change of Control Benefits

Pursuant to his employment agreement, Mr. Stone is entitled to specified benefits in the event of the termination of his employment under certain circumstances. We provide more detailed information about Mr. Stone’s benefits, as in effect during 2014 along with estimates of their value under various circumstances, under the captions “Employment and Related Agreements” and “Potential Payments Upon Termination or Change of Control” below.

 

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The time-based stock options awarded to our named executive officers under the 2014 Stock Option Plan, 2008 Stock Incentive Plan and 2006 Equity Incentive Plan each vest in full immediately prior to the effectiveness of a “change of control” (or, for the 2006 Equity Incentive Plan, immediately prior to the effectiveness of a “liquidity event”). The option agreements for option awards under the 2014 Stock Option Plan, 2008 Stock Incentive Plan and 2006 Equity Incentive Plan define a “change of control” (or, for the 2006 Equity Incentive Plan, a “liquidity event”) to generally mean the consummation of any transaction or series of transactions pursuant to which one or more persons or group of persons acquires (a) capital stock of the Company possessing voting power sufficient to elect a majority of the members of our Board or the board of directors of any successor to the Company (whether such transaction is effected by merger, consolidation, recapitalization, sale or transfer of the Company’s capital stock or otherwise) or (b) all or substantially all of the assets of the Company.

On March 31, 2015, we entered into an amended employment agreement with Mr. Stone. The modifications were intended to update Mr. Stone’s existing employment agreement, as in effect throughout 2014 (the “prior agreement”), for our current business practices and compensation programs. The term of the amended agreement will continue until March 11, 2016, and will be extended by successive one-year periods unless either party gives at least 90 days’ notice of non-renewal. Mr. Stone’s annual base salary under the amended agreement will be no less than $875,000, and he will be eligible for annual and long-term incentive grants under the Company’s incentive plans as may be in effect from time to time under the terms of such plans (and will not be entitled to any minimum annual cash bonus).

If we terminate Mr. Stone’s employment without “cause” or if Mr. Stone resigns for “good reason” (in each case as defined in the amended agreement) during the employment agreement term, or if Mr. Stone’s employment terminates because we provide a notice of non-renewal, subject to the effectiveness of a release in favor of the Company, Mr. Stone will be entitled to receive (1) an amount equal to 200% of his base salary and 200% of his average annual bonus for the three bonus years preceding termination, (2) accelerated vesting of 50% of his then unvested options and full vesting of any restricted stock and (3) three years of coverage under certain health plans. If Mr. Stone dies or his employment terminates due to “disability” (as defined in the agreement) he will be entitled to receive, subject to a release in the case of disability, (1) disability or death benefits (as applicable) in accordance with our programs and arrangements, (2) accelerated vesting as set forth above, and (3) a pro-rated amount of his average bonus for the three bonus years preceding termination. Consistent with the prior agreement, if payments to Mr. Stone cause him to incur an excise tax under Section 4999 of the Internal Revenue Code, Mr. Stone will be entitled to an additional payment sufficient to cover such excise tax and any taxes associated with such payments.

The amended agreement also provides that we will assist Mr. Stone with (and pay reasonable filing and legal fees associated with) any filing Mr. Stone may be required to make under the Hart-Scott-Rodino Act in connection with his ownership of our common stock acquired in connection with his employment (including with respect to the conversion to common stock of certain Class A Non-Voting common stock held by Mr. Stone). The amended agreement provides for non-competition and non-solicitation covenants pursuant to which Mr. Stone will be prohibited from competing with SS&C or its affiliates and from soliciting employees or customers during his employment and for two years following termination of employment. The form of Mr. Stone’s employment agreement, as amended and restated, was filed with a Current Report on Form 8-K on April 1, 2015.

See “Potential Payments Upon Termination or Change of Control” below for estimates of the value our named executive officers would receive in the event of a liquidity event under our 2006

 

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Equity Incentive Plan or a change of control under our 2008 Stock Incentive Plan or our 2014 Stock Option Plan, as applicable, in each case as of December 31, 2014.

Accounting and Tax Implications

The accounting and tax treatment of particular forms of compensation do not materially affect our compensation decisions. However, we evaluate the effect of such accounting and tax treatment on an ongoing basis and will make modifications to compensation policies where we deem it appropriate. For instance, Section 162(m) of the Internal Revenue Code generally disallows a tax deduction for compensation in excess of $1.0 million paid by a public company to its chief executive officer and to each other officer (other than the chief financial officer) whose compensation is required to be reported to our stockholders pursuant to the Exchange Act. However, certain compensation, including qualified “performance-based compensation,” will not be subject to the deduction limit if certain requirements are met. Section 162(m) did not apply to our compensation when we were a private company, and we relied on the post-initial public offering “transition relief” rules under Section 162(m) until the date of our 2014 annual meeting.

Our Compensation Committee may review the potential effect of Section 162(m) periodically and use its judgment to authorize compensation payments that may be subject to the limit when it believes such payments are appropriate and in our best interests after taking into consideration changing business conditions and the performance of our employees.

Report of the Compensation Committee

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with our management. Based on this review and discussion, the Compensation Committee recommended to our Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement.

By the Compensation Committee of the Board of SS&C Technologies Holdings, Inc.

William A. Etherington

Allan M. Holt

David A. Varsano

 

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Summary Compensation Table

The following table contains information with respect to the compensation earned by our named executive officers for the fiscal years ended December 31, 2014, 2013 and 2012.

 

 

Name and

Principal

Position

  Year    

Salary

($)

   

Bonus

($) (1)

   

Option

awards

($) (2)

    Non-equity
incentive plan
compensation
($) (3)
   

All other

compensation

($) (4)

   

Total

($)

 
             

William C. Stone

Chief Executive Officer

    2014        875,000               2,438,564                5,000,000                5,032,032        8,318,596   
    2013        848,958        4,000,000        1,722,061               5,032,032        6,576,051   
    2012        750,000        3,100,000        1,097,760               5,032,032        4,952,792   

Patrick J. Pedonti

Chief Financial Officer

    2014        350,000               834,246        950,000        5,584,584        2,139,830   
    2013        331,250        900,000        607,786               5,584,584        1,844,620   
    2012        260,000        750,000        411,660               5,584,584        1,427,244   

Normand A. Boulanger

Chief Operating Officer

    2014        550,000               1,155,109        1,900,000        4,552,552        3,609,661   
    2013        529,167        1,800,000        861,030               4,552,552        3,194,749   
    2012        450,000        1,500,000        548,880               4,552,552        2,503,432   

Rahul Kanwar (5)

Sr. Vice President

    2014        475,000               1,026,764        1,400,000        4,240,552        2,906,004   
    2013        464,583        1,100,000        709,084               4,216,216        2,277,883   
Paul G. Igoe (6)     2014        260,000               320,864        250,000        4,552        835,416   
General Counsel     2013        256,167        400,000        621,796               4,552,552        1,282,515   

 

  (1) Amounts reflected for the year 2013 reflect bonuses earned in 2013 and paid in 2014. Amounts reflected for the year 2012 reflect bonuses earned in 2012 and paid in 2013. Mr. Igoe’s 2013 bonus includes a sign-on bonus of $150,000.

 

  (2) The amounts in this column reflect the aggregate accounting grant date fair value of awards to our named executive officers, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718. The assumptions used by us in the valuation of the equity awards are set forth in Note 11 of the notes to our audited consolidated financial statements for the year ended December 31, 2014 included in our Annual Report on Form 10-K filed with the SEC on February 26, 2015. Mr. Igoe’s 2013 stock option awards include an initial hire stock option grant for 75,000 shares (having a value for purposes of the above table of $419,201) made in connection with his joining the Company in January 2013.

 

  (3) Amounts reflected for the year 2014 reflect awards earned in 2014 and paid in 2015 under our Executive Bonus Plan.

 

  (4) The amounts in this column reflect, for each named executive officer, the sum of (1) our contributions of $4,000 in each of 2014, 2013 and 2012 to the SS&C 401(k) savings plan and (2) our payments of life insurance premiums.

 

  (5) Mr. Kanwar was elected as an executive officer on March 7, 2013.

 

  (6) Mr. Igoe joined the Company in January 2013 and was elected as an executive officer on March 7, 2013.

 

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CEO Employment Agreement

Effective as of November 23, 2005, we entered into an employment agreement with Mr. Stone. We entered a new employment agreement with Mr. Stone in March 2010 which was amended and restated in April 2015. The terms of the agreement as in effect during 2014 and as of December 31, 2014 are summarized below. For information on Mr. Stone’s amended and restated agreement dated March 31, 2015, see “Executive and Director Compensation—Severance and Change of Control Benefits”, above.

 

   

The employment of Mr. Stone as the Chief Executive Officer of SS&C Holdings and SS&C;

 

   

An initial term through March 11, 2013 with automatic one-year renewals until terminated either by Mr. Stone or us;

 

   

An annual base salary of at least $750,000;

 

   

An opportunity to receive an annual bonus in an amount to be established by our Board based on Mr. Stone’s and the Company’s performance, as determined by our Compensation Committee (not less than $500,000 for any year);

 

   

Certain severance payments and benefits. If we terminate Mr. Stone’s employment without cause, if Mr. Stone resigns for good reason (including, under certain circumstances, following a change of control as defined in the employment agreement) prior to the end of the term of the employment agreement, or if Mr. Stone receives a notice of non-renewal of the employment term by us, Mr. Stone will be entitled to receive (1) an amount equal to 200% of his base salary and 200% of his minimum annual bonus, (2) vesting acceleration with respect to 50% of his then unvested options, and (3) three years of coverage under SS&C’s medical, dental and vision benefit plans. In the event of Mr. Stone’s death or a termination of Mr. Stone’s employment due to any disability that renders Mr. Stone unable to perform his duties under the agreement for six consecutive months, Mr. Stone or his representative or heirs, as applicable, will be entitled to receive (1) disability or death benefits (as applicable) in accordance with SS&C’s provided insurance programs and arrangements in which Mr. Stone was participating immediately prior to such termination, (2) vesting acceleration with respect to 50% of his then unvested options, and (3) a pro-rated amount of his most recent annual bonus. In the event payments to Mr. Stone cause him to incur a 20% excise tax under Section 4999 of the Internal Revenue Code, Mr. Stone will be entitled to an additional payment sufficient to cover such excise tax and any taxes associated with such payments; and

 

   

Certain restrictive covenants, including non-competition and non-solicitation covenants pursuant to which Mr. Stone will be prohibited from competing with us or our affiliates and from soliciting our employees or customers during the period beginning on the effective date of the March 2010 employment agreement and ending on the date that is two years following Mr. Stone’s termination of employment.

“Cause” means (a) Mr. Stone’s willful and continuing failure (except where due to physical or mental incapacity) to substantially perform his duties; (b) Mr. Stone’s conviction of, or plea of guilty or nolo contendere to, a felony; (c) the commission by Mr. Stone of an act of fraud or embezzlement against us or any of our subsidiaries as determined in good faith by a two-thirds majority of the Board; or (d) Mr. Stone’s breach of any material provision of his employment agreement.

 

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“Good reason” generally means the occurrence of any of the following events without Mr. Stone’s written consent: (a) an adverse change in Mr. Stone’s employment title; (b) a material diminution in Mr. Stone’s employment duties, responsibilities or authority, or the assignment to Mr. Stone of duties that are materially inconsistent with his position; (c) any reduction in Mr. Stone’s base salary or minimum annual bonus; (d) a relocation of our principal executive offices to a location more than 35 miles from its current location which has the effect of increasing Mr. Stone’s commute; or (e) any breach by us of any material provision of Mr. Stone’s employment agreement or the Stockholders Agreement.

Under Mr. Stone’s employment agreement, a “change of control” means:

(a) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either:

 

   

the then-outstanding shares of our common stock or the common stock of SS&C, or

 

   

the combined voting power of our then-outstanding voting securities or the then-outstanding voting securities of SS&C entitled to vote generally in the election of directors (in each case, other than any acquisition by us, Carlyle Partners IV, L.P. (an investment fund affiliated with Carlyle), Mr. Stone, any employee or group of employees of ours, or affiliates of any of the foregoing, or by any employee benefit plan (or related trust) sponsored or maintained by us or any of our affiliates); or

(b) individuals who, as of the effective date of Mr. Stone’s employment agreement, constituted our Board and any individuals subsequently elected to our Board pursuant to the Stockholders Agreement cease for any reason to constitute at least a majority of our Board, other than:

 

   

individuals whose election, or nomination for election by our stockholders, was approved by at least a majority of the directors comprising the Board on the effective date of Mr. Stone’s employment agreement and any individuals subsequently elected to our Board of Directors pursuant to the Stockholders Agreement; or

 

   

individuals nominated or designated for election by Carlyle Partners IV, L.P.

Other than Mr. Stone, none of our executive officers is party to an employment agreement.

 

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2014 Grants of Plan-Based Awards

The following table sets forth information regarding grants of compensation in the form of plan-based awards made during 2014 to our named executive officers.

 

 

Name   Grant
date (1)
            Estimated
future
payouts
under non-
equity
incentive plan
awards (2)
            All other
option
awards:
number of
securities
underlying
options (#)
    Exercise
price of
option
awards
($/share)
    Grant date
fair value of
stock and
option awards
($)
 
             
          Threshold
($)
   

Target

($)

    Maximum
($)
                   

William C. Stone

    3/7/2014               5,000,000                               
    12/19/2014                             190,000 (3)       56.53        2,438,564 (4)  

Patrick J. Pedonti

    3/7/2014               950,000                               
    12/19/2014                             65,000 (3)       56.53        834,246 (4)  

Normand A. Boulanger

    3/7/2014               1,900,000                               
    12/19/2014                             90,000 (3)       56.53        1,155,109 (4)  

Rahul Kanwar

    3/7/2014               1,400,000                               
    12/19/2014                        80,000 (3)       56.53        1,026,764 (4)  

Paul G. Igoe

    3/7/2014               250,000                               
      12/19/2014                             25,000 (3)       56.53        320,864 (4)  

 

  (1) Awarded under our Executive Bonus Plan or our 2014 Stock Option Plan.

 

  (2) Amounts represent actual bonus awards earned in 2014 and paid in 2015 under our Executive Bonus Plan.

 

  (3) This option is a time-based option that vests as to 25% of the number of shares underlying the option on December 19, 2015 and vests as to 1/36 of the number of shares underlying the option each month thereafter until fully vested on December 19, 2018, subject to acceleration of vesting in connection with a change of control.

 

  (4) Amount reflects the aggregate accounting grant date fair value of awards to our named executive officers, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718. The assumptions used by us in the valuation of the equity awards are set forth in Note 11 of the notes to our audited consolidated financial statements for the year ended December 31, 2014 included in our Annual Report on Form 10-K filed with the SEC on February 26, 2015.

 

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2014 Option Exercises and Stock Vested

The following table sets forth information concerning stock options that were exercised by our named executive officers in 2014 and the value realized upon vesting of shares of restricted stock.

 

       Option Awards  
Name    Number of
shares acquired
on exercise (#)
    

Value

realized on
exercise($) (1)

 
     

Patrick J. Pedonti

                     180,000                         6,200,493   

Normand A. Boulanger

     250,000         7,922,101   

 

  (1) The dollar value realized on exercise represents the difference between the selling price and the respective per-share exercise price of the options.

 

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Outstanding Equity Awards at 2014 Fiscal Year-End

The following equity awards granted to our named executive officers were outstanding as of December 31, 2014.

 

       Option Awards  
Name   

Number of

Securities

Underlying

Unexercised

Options (#)
Exercisable

    Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
    Option
Exercise
Price($)
     Option
Expiration
Date
 
         

William C. Stone

     603,439               8.77         8/9/2016   
     603,439               8.77         8/9/2016   
     301,719               8.77         8/9/2016   
     127,500               14.53         2/4/2020   
     110,833 (1)       29,167 (1)       13.48         10/3/2021   
     99,999 (3)       100,001 (3)       22.44         12/27/2022   
     42,500 (4)       127,500 (4)       42.20         12/20/2023   
            190,000 (6)       56.53         12/19/2024   

Patrick J. Pedonti

     109,645               8.77         8/9/2016   
     54,822               8.77         8/9/2016   
     63,750               14.53         2/4/2020   
     39,583 (1)       10,417 (1)       13.48         10/3/2021   
     37,499 (3)       37,501 (3)       22.44         12/27/2022   
     15,000 (4)       45,000 (4)       42.20         12/20/2023   
            65,000 (6)       56.53         12/19/2024   

Normand A. Boulanger

     452,581               8.77         8/9/2016   
     123,295               8.77         8/9/2016   
     61,648               8.77         8/9/2016   
     85,000               14.53         2/4/2020   
     67,291 (1)       17,709 (1)       13.48         10/3/2021   
     49,999 (3)       50,001 (3)       22.44         12/27/2022   
     21,250 (4)       63,750 (4)       42.20         12/20/2023   
            90,000 (6)       56.53         12/19/2024   

Rahul Kanwar

     58,000               8.77         8/9/2016   
     1,480               8.77         8/9/2016   
     740               8.77         8/9/2016   
     42,500               14.53         3/23/2020   
     53,437 (1)       14,063 (1)       13.48         10/3/2021   
     23,333 (2)       16,667 (2)       22.19         8/30/2022   
     29,999 (3)       30,001 (3)       22.44         12/27/2022   
     17,500 (4)       52,500 (4)       42.20         12/20/2023   
            80,000 (6)       56.53         12/19/2024   

Paul G. Igoe

     35,937 (5)       39,063 (5)       22.75         1/7/2023   
     5,000 (4)       15,000 (4)       42.20         12/20/2023   
                  25,000 (6)       56.53         12/19/2024   

 

  (1) This option is a time-based option granted under our 2006 Equity Incentive Plan that vested as to 25% of the number of shares underlying the option on October 3, 2012 and vests as to 1/36 of the number of shares underlying the option each month thereafter until fully vested on October 3, 2015, subject to acceleration of vesting in connection with a liquidity event.

 

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  (2) This option is a time-based option granted under our 2008 Equity Incentive Plan that vested as to 25% of the number of shares underlying the option on August 30, 2013 and vests as to 1/36 of the number of shares underlying the option each month thereafter until fully vested on August 30, 2016, subject to acceleration of vesting in connection with a change of control.

 

  (3) This option is a time-based option granted under our 2008 Stock Incentive Plan that vested as to 25% of the number of shares underlying the option on December 27, 2013 and vests as to 1/36 of the number of shares underlying the option each month thereafter until fully vested on December 27, 2016, subject to acceleration of vesting in connection with a change of control.

 

  (4) This option is a time-based option granted under our 2008 Equity Incentive Plan that vests as to 25% of the number of shares underlying the option on December 20, 2014 and vests as to 1/36 of the number of shares underlying the option each month thereafter until fully vested on December 20, 2017, subject to acceleration of vesting in connection with a change of control.

 

  (5) This option is a time-based option granted under our 2008 Equity Incentive Plan that vests as to 25% of the number of shares underlying the option on January 7, 2014 and vests as to 1/36 of the number of shares underlying the option each month thereafter until fully vested on January 7, 2017, subject to acceleration of vesting in connection with a change of control.

 

  (6) This option is a time-based option granted under our 2014 Stock Option Plan that vests as to 25% of the number of shares underlying the option on December 19, 2015 and vests as to 1/36 of the number of shares underlying the option each month thereafter until fully vested on December 19, 2018, subject to acceleration of vesting in connection with a change of control.

Equity Compensation Plan Information

The following table sets forth, as of December 31, 2014, the number of securities outstanding under our equity compensation plans, the weighted-average exercise price of such securities and the number of securities available for grant under these plans.

 

Plan category    Number of
securities to be
issued upon
exercise of
outstanding
options (1) (#)
     Weighted-average
exercise price of
outstanding
options ($)
     Number of
securities
remaining
available for future
issuance under
equity
compensation
plans (1)(2) (#)
 

Equity compensation plans approved by security holders (3)

           11,720,648                                 26.24                     4,157,881 (4)  

Equity compensation plans not approved by security holders

                       
  

 

 

       

 

 

 

Total

     11,720,648         26.24         4,157,881   

 

  (1) Number of shares is subject to adjustment for changes in capitalization such as stock splits, stock dividends and similar events.

 

  (2)

Shares available for future issuance may be issued in the form of stock options, restricted stock, unrestricted stock, restricted stock units, stock appreciation rights or other stock-based awards. Our 2008 Stock Incentive Plan contains an evergreen provision providing for an

 

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  automatic annual increase in the number of securities available for future issuance on the first day of each of our fiscal years during the term of the 2008 Stock Incentive Plan equal to the lesser of (i) 1,416,661 shares of common stock, (ii) 2% of the outstanding shares on such date or (iii) an amount determined by our Board.

 

  (3) Consists of the 2006 Equity Incentive Plan, 2008 Stock Incentive Plan and 2014 Stock Option Plan.

 

  (4) Consists of 560,200 shares available for issuance under the 2006 Equity Incentive Plan, 1,047,681 shares available for issuance under the 2008 Stock Incentive Plan and 2,550,000 under the 2014 Stock Option Plan.

Potential Payments Upon Termination or Change of Control

William C. Stone

Mr. Stone’s employment agreement as in effect for the fiscal year ended December 31, 2014, is described under the caption “Employment and Related Agreements” above. For information on Mr. Stone’s amended and restated agreement dated March 31, 2015, see “Executive and Director Compensation—Severance and Change of Control Benefits”, above.

The table below reflects the amount of compensation payable to Mr. Stone in the event of termination of his employment or a liquidity event (as defined in our 2006 Equity Incentive Plan) or change of control (as defined in our 2008 Stock Incentive Plan and 2014 Stock Option Plan). The amounts shown assume that such liquidity event, change of control or termination was effective as of December 31, 2014, and thus report amounts earned through such time and are estimates of the amounts that would be paid out to him upon such event or his termination under the employment agreement as in effect as of December 31, 2014. The actual amounts to be paid out, if any, will differ from the amounts reflected below and can only be determined at the time of the liquidity event/change of control or Mr. Stone’s termination.

 

Payments to
William C. Stone
upon termination
or liquidity event/
change of control
   Termination
without cause, for
good reason
or upon
notice of non-
renewal
    For cause or
without good
reason (1)
     Liquidity event
and change
of control (2)
    Disability     Death  
                                 

Base salary

                 1,750,000 (3)                     —                     —                 

Annual bonus

     1,000,000 (4)                      5,000,000 (5)       5,000,000 (5)  

Stock options

     3,683,609 (6)               7,367,218 (7)       3,683,609 (6)       3,683,609 (6)  

Health and welfare benefits

     3,543 (8)                               

Tax gross up payment

     4,483,101 (9)                               

Disability benefits

                                    

Life insurance proceeds

                               
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total

     10,920,253                7,367,218        8,683,609        8,683,609   

 

  (1)

In the event that Mr. Stone’s employment is terminated for cause or without good reason, he will be entitled to unpaid base salary through the date of the termination, payment of any

 

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  annual bonus earned with respect to a completed fiscal year of SS&C that is unpaid as of the date of termination and any benefits due to him under any employee benefit plan, policy, program, arrangement or agreement.

 

  (2) Liquidity event is defined in Mr. Stone’s option agreements governing options granted under our 2006 Equity Incentive Plan, and change of control is defined in Mr. Stone’s option agreements governing options granted under our 2008 Stock Incentive Plan and 2014 Stock Option Plan. Time-based stock options granted under our 2006 Equity Incentive Plan, 2008 Stock Incentive Plan and 2014 Stock Option Plan will in each case become fully vested and exercisable immediately prior to the effective date of a liquidity event.

 

  (3) Consists of 200% of 2014 base salary payable promptly upon termination.

 

  (4) Consists of 200% of $500,000, the minimum annual bonus specified for Mr. Stone in his employment agreement as in effect December 31, 2014.

 

  (5) Consists of a cash payment equal to the amount of Mr. Stone’s annual bonus for 2014, payable within 60 business days of termination.

 

  (6) Vesting acceleration with respect to unvested options to purchase an aggregate of 223,334 shares of our common stock, which is equal to 50% of all unvested options held by Mr. Stone on December 31, 2014, calculated based on the difference between the respective exercise price of the options and $58.49 (the closing price of our common stock on The NASDAQ Global Select Market on December 31, 2014).

 

  (7) Vesting acceleration with respect to unvested options to purchase an aggregate of 446,668 shares of our common stock, which is equal to 100% of all unvested options held by Mr. Stone on December 31, 2014, calculated based on the difference between the respective exercise price of the options and $58.49 (the closing price of our common stock on The NASDAQ Global Select Market on December 31, 2014).

 

  (8) Represents three years of coverage under SS&C’s dental benefit plan.

 

  (9) In the event that the severance and other benefits provided for in Mr. Stone’s employment agreement or otherwise payable to him in connection with a change of control constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code and will be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code, then Mr. Stone will receive (a) a payment from us sufficient to pay such excise tax, and (b) an additional payment from us sufficient to pay the excise tax and U.S. federal and state income taxes arising from the payments made by us to Mr. Stone pursuant to this sentence.

In accordance with Mr. Stone’s employment agreement, none of the severance payments described above will be paid during the six-month period following his termination of employment unless we determine, in our good faith judgment, that paying such amounts at the time or times indicated above would not cause him to incur an additional tax under Section 409A of the Internal Revenue Code (in which case such amounts will be paid at the time or times indicated above). If the payment of any amounts are delayed as a result of the previous sentence, on the first day following the end of the six-month period, we will pay Mr. Stone a lump-sum amount equal to the cumulative amounts that would have otherwise been previously paid to him under his employment agreement. Thereafter, payments will resume in accordance with the above table.

 

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Other Named Executive Officers

Other than Mr. Stone, none of our executive officers has any arrangement that provides for severance payments. Time-based stock options granted under our 2006 Equity Incentive Plan, 2008 Stock Incentive Plan and 2014 Stock Option Plan will become fully vested and exercisable immediately prior to the effective date of a liquidity event or change of control, respectively. Stock options granted under our 2008 Stock Incentive Plan will become fully vested and exercisable immediately prior to the effective date of a change of control.

As of December 31, 2014, Messrs. Pedonti, Boulanger, Kanwar, and Igoe held the following unvested stock options that would have become fully vested upon a liquidity event or change of control, as applicable.

 

     
Name    Number of shares underlying
unvested options (#)
     Value of unvested options ($) (1)  
     

Patrick J. Pedonti

                                              157,918                                      2,681,230   

Normand A. Boulanger

     221,460         3,814,506   

Rahul Kanwar

     193,231         3,331,549   

Paul G. Igoe

     79,063         1,689,462   

 

  (1) The value of unvested options was calculated by multiplying the number of shares underlying unvested options by $58.49 (the closing price of our common stock as reported on The NASDAQ Global Select Market on December 31, 2014) and then deducting the aggregate exercise price for these options.

 

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2014 Director Compensation

Messrs. Daniels, Etherington, Michael, Varsano and Zamkow each receive an annual retainer fee of $25,000, which is paid in advance on or about the date of the annual stockholders meeting (in 2014, Mr. Zamkow’s retainer was pro-rated to the date he was first elected as a director, June 20, 2014) and a Board meeting attendance fee of $2,500 per meeting (if attended in person). Members of our Audit Committee receive a committee attendance fee of $1,500 per-meeting (payable for in-person and telephonic attendance). Mr. Holt, an employee of Carlyle, does not receive an annual retainer, but was granted a one-time stock option award in 2014 in recognition of his continued service notwithstanding the sale by Carlyle of the entirety of its equity holdings in the Company in 2013. Mr. Stone and Mr. Boulanger, as employees of the Company, do not receive any incremental compensation for Board service. All of our directors are reimbursed for reasonable out-of-pocket expenses associated with their service on the Board. The following table contains information with respect to the compensation of Messrs. Daniels, Etherington, Holt, Michael, Varsano and Zamkow for fiscal 2014 for serving as directors and options awarded during 2014.

 

Name    Fees earned
or paid in
cash ($)
    Option award (6)  ($)      Total ($)  
       

Michael E. Daniels

     32,500 (1)       33,479         65,979   

William A. Etherington

     42,500 (2)       33,479         75,979   

Allan M. Holt

            224,959         224,959   

Jonathan E. Michael

     41,500 (3)       33,479         74,979   

David A. Varsano

     44,000 (4)       33,479         77,479   

Michael J. Zamkow

     28,493 (5)               250,639         279,132   

 

  (1) Includes a retainer of $25,000 and $7,500 for attending Board meetings in person.

 

  (2) Includes an annual retainer of $25,000, $10,000 for attending Board meetings in person, and $7,500 for attending Audit Committee meetings.

 

  (3) Includes an annual retainer of $25,000, $7,500 for attending Board meetings in person, and $9,000 for attending Audit Committee meetings.

 

  (4) Includes an annual retainer of $25,000, $10,000 for attending Board meetings in person, and $9,000 for attending Audit Committee meetings.

 

  (5) Includes a pro-rated retainer of $23,493 and $5,000 for attending Board meetings in person.

 

  (6)

In connection with the Company’s annual stockholders meeting on May 29, 2014, each outside director not employed by the Company and not affiliated with Carlyle was granted a stock option to purchase 3,000 shares of our common stock on May 29, 2014 at an exercise price of $42.77 per share. These grants to our outside directors are 100% vested and exercisable on the date of grant and expire on May 29, 2024. Mr. Zamkow, who was appointed to our Board on June 20, 2014, was granted an option to purchase 21,250 shares of our common stock on June 20, 2014 at an exercise price of $44.75 per share. This stock option grant to Mr. Zamkow is 100% vested and exercisable on the date of grant and expires on June 20, 2024. Mr. Holt, who is affiliated with Carlyle, a former stockholder of the Company, was granted an option to purchase 21,250 shares of our common stock on

 

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  August 7, 2014 at an exercise price of $42.83 per share. This stock option grant to Mr. Holt is 100% vested and exercisable on the date of grant and expires on August 7, 2024. As of December 31, 2014, the aggregate number of stock options outstanding per director was as follows: Mr. Daniels—24,250; Mr. Etherington—30,250; Mr. Holt—21,250; Mr. Michael—30,250; Mr. Varsano—30,250; and Mr. Zamkow—21,250. The amount in this column reflects the aggregate grant date fair value of the options, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718. The assumptions used by us in the valuation of the options are set forth in Note [11] of the notes to our audited consolidated financial statements for the year ended December 31, 2014 included in our Annual Report on Form 10-K, filed with the SEC on February 26, 2015.

 

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PROPOSAL 2

RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

The Audit Committee has appointed the firm of PricewaterhouseCoopers LLP, an independent registered public accounting firm, to audit our books, records and accounts for fiscal 2015. This appointment is being presented to the stockholders for ratification at the 2015 annual meeting.

PricewaterhouseCoopers LLP, or PwC, has no direct or indirect material financial interest in our Company or our subsidiaries. Representatives of PwC are expected to be present at the 2015 annual meeting and will be given the opportunity to make a statement on the firm’s behalf if they so desire. The representatives also will be available to respond to appropriate questions.

The following table summarizes the fees of PwC billed to us for each of fiscal 2014 and fiscal 2013. For fiscal 2014, audit fees include an estimate of amounts not yet billed.

 

Nature of Service    2014 Fees      2013 Fees  

Audit Fees (1)

   $     2,336,273       $     2,790,427   

Audit-Related Fees (2)

             900,191   

Tax Fees (3)

     292,715         353,908   

All Other Fees (4)

     113,263         31,500   
  

 

 

    

 

 

 

Total

   $ 2,742,251       $ 4,076,026   

 

(1) Audit fees consist of fees for the audit of our financial statements, the review of the interim financial statements included in our Quarterly Reports on Form 10-Q, and services related to our filings of Registration Statements on Form S-3 in 2013, such as the issuance of consents.

 

(2) Audit-related fees consist of fees for assurance and related services that are reasonably related to the performance of the audit and the review of our financial statements and which are not reported under “Audit Fees.” These services relate to accounting consultations in connection with acquisitions, procedures performed for SSAE 16 reports, attest services that are not required by statute or regulation and consultations concerning internal controls, financial accounting and reporting standards.

 

(3) Tax fees consist of fees for tax compliance, tax advice and tax planning services. Tax compliance services, which relate to preparation of original and amended tax returns, claims for refunds and tax payment-planning services, accounted for approximately $77,217 of the total tax fees billed in 2014 and approximately $114,163 of the total tax fees billed in 2013. Tax advice and tax planning services relate to assistance with tax audits and appeals, tax advice related to acquisitions and requests for rulings or technical advice from taxing authorities.

 

(4) All other fees for 2014 and 2013 consist of other advisory and consulting services.

All the services described above were approved by our Audit Committee in advance of the services being rendered. The Audit Committee is responsible for the appointment, compensation and oversight of the work performed by the independent registered public accounting firm. The Audit Committee must pre-approve all audit (including audit-related) services and permitted non-audit services provided by the independent registered public accounting firm in accordance with the

 

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pre-approval policies and procedures established by the Audit Committee. The Audit Committee annually approves the scope and fee estimates for the quarterly reviews, year-end audit, statutory audits and tax work to be performed by our independent registered public accounting firm for the next fiscal year. With respect to other permitted services, management defines and presents specific projects and categories of service for which the advance approval of the Audit Committee is requested. The Audit Committee pre-approves specific engagements, projects and categories of services on a fiscal year basis, subject to individual project thresholds and annual thresholds. In assessing requests for services by the independent registered public accounting firm, the Audit Committee considers whether such services are consistent with the independent registered public accounting firm’s independence, whether the independent registered public accounting firm is likely to provide the most effective and efficient service based upon their familiarity with us, and whether the service could enhance our ability to manage or control risk or improve audit quality.

Proxies solicited by management will be voted for the ratification unless stockholders specify otherwise. Ratification by the stockholders is not required. Although we are not required to submit the appointment to a vote of the stockholders, our Board believes it is appropriate as a matter of policy to request that the stockholders ratify the appointment of PwC as our independent registered public accounting firm. If the stockholders do not ratify the appointment, the Audit Committee may investigate the reasons for stockholder rejection and consider whether to retain PwC or appoint another independent registered public accounting firm. Even if the appointment is ratified, our Board and the Audit Committee in their discretion may direct the appointment of a different independent registered public accounting firm at any time during the year if they determine that such a change would be in the best interests of our Company and our stockholders.

T HE B OARD OF D IRECTORS R ECOMMENDS THAT Y OU V OTE “FOR” THE R ATIFICATION OF P RICEWATERHOUSECOOPERS LLP AS O UR I NDEPENDENT R EGISTERED P UBLIC A CCOUNTING F IRM FOR O UR F ISCAL Y EAR E NDING D ECEMBER 31, 2015.

 

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Report of the Audit Committee of the Board of Directors

Our Audit Committee has reviewed our audited financial statements for fiscal 2014 and has discussed these financial statements with our management and PwC, our independent registered public accounting firm.

The Audit Committee has also received from, and discussed with, our independent registered public accounting firm various communications that our independent registered public accounting firm is required to provide to the Audit Committee, including Statement on Auditing Standard No. 16 (Communications with Audit Committees), as adopted by the Public Company Accounting Oversight Board, or PCAOB.

Our independent registered public accounting firm also provided the Audit Committee with the written disclosures and the letter from the independent registered public accounting firm required by PCAOB Rule 3526 ( Communicating with Audit Committees Concerning Independence), as modified or supplemented. The Audit Committee has discussed with the independent registered public accounting firm its independence from us.

Based on its discussions with management and the independent registered public accounting firm, and its review of the representations and information provided by management and the independent registered public accounting firm, the Audit Committee recommended to our Board that the audited financial statements be included in our Annual Report on Form 10-K for the year ended December 31, 2014.

By the Audit Committee of the Board of Directors of SS&C Technologies Holdings, Inc.

William A. Etherington (Chair)

Jonathan E. Michael

David A. Varsano

 

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OWNERSHIP OF OUR COMMON STOCK

This table presents information concerning the beneficial ownership of the shares of our common stock as of April 1, 2015. Specifically, the table reflects beneficial ownership information about:

 

   

each person we know to be the beneficial owner of more than 5% of the outstanding shares of our common stock;

 

   

each of our directors and named executive officers; and

 

   

all of our directors and executive officers as a group.

Beneficial ownership is determined under the rules of the SEC and generally includes voting or investment power over securities. Except in cases where community property laws apply or as indicated in the footnotes to this table, we believe that each stockholder identified in the table possesses sole voting and investment power over all shares of common stock shown as beneficially owned by the stockholder. Shares of common stock subject to options that are exercisable or exercisable within 60 days of April 1, 2015 are considered outstanding and beneficially owned by the person holding the options for the purpose of computing the percentage ownership of that person but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.

 

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Unless otherwise indicated, the address of the persons and entities listed on the table is c/o SS&C Technologies Holdings, Inc., 80 Lamberton Road, Windsor, CT 06095.

 

       Shares Beneficially Owned  
Name of Beneficial Owner            Number      Percent of
Class
 

5% Stockholders

     

William C. Stone (1)

     17,153,849         19.9

FMR LLC (2)

     

245 Summer Street

Boston, MA 02210

     10,268,159         12.2

T. Rowe Price Associates, Inc. (3)

100 E. Pratt Street

Baltimore, MD 21202

     7,855,718         9.3

Janus Capital Management LLC (4)

151 Detroit Street

Denver, CO 80206

     6,869,497         8.1

MSDC Management, L.P. (5)

645 Fifth Avenue, 21 st Floor

New York, NY 10022

     4,574,036         5.4

BAMCO, Inc. (6)

767 Fifth Avenue, 49 th Floor

New York, NY 10153

     4,435,632         5.3

Vanguard Group, Inc. (7)

100 Vanguard Blvd.

Malvern, PA 19355

     4,336,591         5.1

Other Directors and Named Executive Officers

     

Normand A. Boulanger (8)

     904,189         1.1

Michael E. Daniels (9)

     24,250         *   

William A. Etherington (10)

     40,250         *   

Allan M. Holt (11)

     21,250         *   

Paul G. Igoe (12)

     50,832         *   

Rahul Kanwar (13)

     261,727         *   

Jonathan E. Michael (14)

     43,250         *   

Patrick J. Pedonti (15)

     324,569         *   

David A. Varsano (16)

     33,750         *   

Michael J. Zamkow (17)

     28,750         *   

All directors and executive officers as a group (11 persons) (18)

     18,886,666         21.5

 

   * Represents less than one percent of the outstanding shares of common stock.

 

  (1) Includes 1,942,554 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2014 and 2,703,846 shares of our Class A Non-Voting common stock. Shares of our Class A Non-Voting common stock have no voting rights and cannot be voted at the 2015 annual meeting.

 

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  (2) Consists of 10,268,159 shares of common stock reported as beneficially owned by FMR LLC including 406,541 shares of common stock over which FMR LLC reports sole voting power and 10,268,159 shares of common stock over which FMR LLC reports sole dispositive power. We obtained information regarding beneficial ownership of these shares solely from the Schedule 13G that was filed with the SEC on February 13, 2015.

 

  (3) Consists of 7,855,718 shares of common stock reported as beneficially owned by T. Rowe Price Associates, Inc. including 1,410,200 shares of common stock over which T. Rowe Price Associates, Inc. reports sole voting power and 7,855,718 shares of common stock over which T. Rowe Price Associates, Inc. reports sole dispositive power. We obtained information regarding beneficial ownership of these shares solely from the Schedule 13G that was filed with the SEC on February 11, 2015.

 

  (4) Consists of 6,869,497 shares of common stock reported as beneficially owned by Janus Capital Management LLC over which Janus Capital Management LLC reports sole voting power and sole dispositive power. We obtained information regarding beneficial ownership of these shares solely from the Schedule 13G that was filed with the SEC on February 18, 2015.

 

  (5) Consists of 4,574,036 shares of common stock reported as beneficially owned by MSD Torchlight Partners, L.P. MSD Torchlight Partners (MM), L.P. and MSDC Management, L.P. (the “MSD”) over which one or more members of the MSD Group report shared voting power and shared dispositive power. We obtained information regarding beneficial ownership of these shares solely from the Schedule 13G that was filed with the SEC on February 17, 2015.

 

  (6) Consists of 4,435,632 shares of common stock reported as beneficially owned by Baron Capital Group, Inc., BAMCO, Inc. Baron Capital Management, Inc. and Ronald Baron (collectively, the “BAMCO Group”) over which one or more members of the BAMCO Group report shared voting power of 4,050,632 shares of common stock and shared dispositive power of 4,435,632 shares of common stock. We obtained information regarding beneficial ownership of these shares solely from the Schedule 13G that was filed with the SEC on February 17, 2015.

 

  (7) Consists of 4,336,591 shares of common stock reported as beneficially owned by The Vanguard Group over which The Vanguard Group reports sole voting power of 91,342 shares of common stock, sole dispositive power of 4,251,649 shares of common stock and shared dispositive power of 84,942 shares of common stock. We obtained information regarding beneficial ownership of these shares solely from Schedule 13G that was filed with the SEC on February 11, 2015.

 

  (8) Includes 889,189 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015.

 

  (9) Consists of 24,250 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015.

 

  (10) Includes 30,250 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015.

 

  (11) Consists of 21,250 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015.

 

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  (12) Consists of 50,832 shares of our common stock subject to outstanding options exercisable on or within the 60-day period following April 1, 2015.

 

  (13) Includes 251,727 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015.

 

  (14) Includes 30,250 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015.

 

  (15) Consists of 339,569 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015.

 

  (16) Includes 30,250 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015.

 

  (17) Includes 21,250 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015.

 

  (18) Includes 3,631,371 shares of our common stock subject to outstanding stock options exercisable on or within the 60-day period following April 1, 2015

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires certain officers, directors and beneficial owners of more than 10% of our common stock to file reports of ownership and changes of ownership with the SEC on Forms 3, 4 and 5. Based on a review of the copies of such forms provided to us and written representations furnished to us, we believe that during fiscal 2014, all reports required by Section 16(a) to be filed by these persons were filed on a timely basis, except with respect to the automatic annual stock option grants made to our outside directors on May 29, 2014, the date of our annual meeting of stockholders, which grants were disclosed in Form 4’s filed on January 13, 2015.

 

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RELATED PERSON TRANSACTIONS

Policies and Procedures for Related Person Transactions

Our Board has adopted written policies and procedures for the review of any transaction, arrangement or relationship in which we have been or are a participant, the amount involved exceeds $120,000, and one of our executive officers, directors, director nominees or 5% stockholders (or their immediate family members), each of whom we refer to as a “related person,” has had or has a direct or indirect material interest. Such a transaction, arrangement or relationship is referred to as a “related person transaction.”

Any related person transaction must be reported to our General Counsel and will be reviewed and approved by the Audit Committee in accordance with the terms of the policy, prior to effectiveness or consummation of the transaction, whenever practicable. If the General Counsel determines that advance approval of a related person transaction is not practicable under the circumstances, the Audit Committee will review and, in its discretion, may ratify the related person transaction at its next meeting, or at the next meeting following the date that the related person transaction comes to the attention of the General Counsel; provided, however, that the General Counsel may present a related person transaction arising in the time period between meetings of the Audit Committee to the Chair of the Audit Committee, who will review and may approve the related person transaction, subject to ratification by the Audit Committee at its next meeting. In addition, any related person transaction previously approved by the Audit Committee or otherwise already existing that is ongoing in nature will be reviewed by the Audit Committee annually to ensure that it has been conducted in accordance with the previous approval granted by the Audit Committee, if any, and that all required disclosures regarding the related person transaction are made.

A related person transaction reviewed under the policy will be considered approved or ratified if it is authorized by the Audit Committee after full disclosure of the related person’s interest in the transaction. As appropriate for the circumstances, the Audit Committee will review and consider:

 

   

the related person’s interest in the related person transaction;

 

   

the approximate dollar value of the amount involved in the related person transaction;

 

   

the approximate dollar value of the amount of the related person’s interest in the transaction without regard to the amount of any profit or loss;

 

   

whether the transaction was undertaken in the ordinary course of our business;

 

   

whether the terms of the transaction are no less favorable to us than terms that could have been reached with an unrelated third party;

 

   

the purpose of, and the potential benefits to us of, the transaction; and

 

   

any other information regarding the related person transaction or the related person in the context of the proposed transaction that would be material to investors in light of the circumstances of the particular transaction.

The Audit Committee may approve or ratify the related person transaction only if the Audit Committee determines that, under all of the circumstances, the transaction is in, or is not inconsistent with, our best interests. The Audit Committee may, in its sole discretion, impose any conditions it deems appropriate on the Company or the related person in connection with approval of the related person transaction.

 

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In addition to the transactions that are excluded by the instructions to the SEC’s related person transaction disclosure rule, our Board has determined that the following do not create a material direct or indirect interest on behalf of a related person and, therefore, are not related person transactions for purposes of our related person transaction policy:

 

   

interests arising solely from the related person’s position as an executive officer of another entity (whether or not the person is also a director of such entity) that is a participant in the transaction, where (a) the related person and all other related persons own in the aggregate less than a 10% equity interest in such entity, (b) the related person and his or her immediate family members (as defined in the policy) are not involved in the negotiation of the terms of the transaction with the Company and do not receive any special benefits as a result of the transaction or (c) the amount involved in the transaction equals less than the greater of $200,000 or 5% of the annual gross revenues of the company receiving payment under the transaction; or

 

   

a transaction that is specifically contemplated by provisions of the Certificate of Incorporation or By-laws of the Company.

The policy provides that transactions involving compensation of executive officers will be reviewed and approved by the Compensation Committee in the manner specified in its charter.

Related Person Transactions

Stockholders Agreement

The Company is a party to a Stockholders Agreement with Mr. Stone that entitles him to nominate four directors, one of whom shall be Mr. Stone for so long as he is our Chief Executive Officer. The number of Board members Mr. Stone is entitled to nominate (including himself) will be reduced to one director if Mr. Stone holds less than 15% of our common stock. Mr. Stone’s rights under the Board nomination provisions of the Stockholders Agreement will terminate at such time as he holds less than 10% of our common stock.

The provisions of the Stockholders Agreement also require that so long as Mr. Stone is a member of our Board and the Chief Executive Officer of the Company, he will serve as Chairman of the Board.

Registration Rights Agreement

The Company and Mr. Stone are parties to a Registration Rights Agreement, under which Mr. Stone can demand that we file a registration statement for all or a portion of his common stock. Mr. Stone is also entitled to request that his shares be covered by a registration statement that we are otherwise filing with respect to our common stock. In either event, the Company is required to pay all expenses of Mr. Stone in connection with the registration (other than underwriting discounts and commissions and transfer taxes applicable to the sale of registrable securities). The Registration Rights Agreement also provides that the Company will indemnify Mr. Stone, and Mr. Stone will indemnify the Company, for certain matters in connection with the registration of Mr. Stone’s shares. The registration rights in the Registration Rights Agreement are subject to certain conditions and limitations specified in the Registration Rights Agreement, including the right of the underwriters of an offering to limit the number of shares included in certain registrations.

 

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Other transactions

Robert S. Stone, the son of our Chief Executive Officer, is employed by SS&C as a sales representative. From January 1, 2014 through December 31, 2014, Robert Stone was paid $428,457 as salary, commissions, grant date fair value of options and other compensation related to his employment at SS&C.

Sabrina Goff, the sister of Rahul Kanwar, our Senior Vice President and Managing Director of Alternative Assets, is employed by SS&C in its fund administration business. From January 1, 2014 through December 31, 2014, Ms. Goff was paid $172,526 as salary, commissions, grant date fair value of options and other compensation related to her employment at SS&C.

During fiscal 2014, Fidelity Management Trust Company (FMTC) served as trustee of SS&C’s 401(k) plan. While the Company does not pay any fees directly to FMTC for this or other ancillary services, the entities affiliated with FMTC received $268,871 in fiscal 2014 from fees incurred by plan participants on balances invested in mutual funds through the plan. FMTC and its affiliated entities are subsidiaries of FMR LLC, which is the owner of more than 5% of our outstanding common stock.

INFORMATION ABOUT THE 2015 ANNUAL MEETING

YOUR VOTE IS IMPORTANT!

You are cordially invited to attend the 2015 annual meeting. However, to ensure that your shares are represented at the 2015 annual meeting and that the Company has the quorum necessary to convene the 2015 annual meeting and conduct business, even if you plan to attend the 2015 annual meeting in person, please complete, sign, date and return the enclosed proxy card promptly. Submitting a proxy or voting instructions in advance will not prevent you from attending the 2015 annual meeting and voting in person, if you so desire. A postage-paid, return-addressed envelope is enclosed for your convenience. No postage need be affixed if mailed in the United States. Your cooperation in giving this your immediate attention is appreciated.

Voting Procedures

You may vote either in person at the 2015 annual meeting or by proxy. To vote by proxy, you must:

 

   

Complete all of the required information on the proxy card.

 

   

Date and sign the proxy card.

 

   

Return the proxy card in the enclosed postage-paid envelope. We must receive your proxy card before the 2015 annual meeting for your proxy to be valid and for your vote to count.

 

   

If you are not the stockholder of record and hold shares through a bank, broker or other nominee, such agent may have special voting instructions that you should follow. You should contact your bank, broker or other nominee to obtain instructions for voting your shares.

Whether or not you expect to be present in person at the 2015 annual meeting, you are requested to complete, sign, date and return the enclosed form of proxy. The shares represented by your proxy will be voted in accordance with your instructions. If you attend the 2015 annual meeting, you may

 

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vote by ballot. If you want to vote in person at the 2015 annual meeting and you own your shares through a bank, broker or other nominee, you must obtain a proxy from that party in its capacity as owner of record for your shares and bring the proxy to the 2015 annual meeting.

Your properly completed proxy card will appoint William C. Stone, Patrick J. Pedonti and Paul G. Igoe as proxy holders, or your representatives, to vote your shares in the manner directed therein by you. Mr. Stone is our Chairman and Chief Executive Officer, Mr. Pedonti is our Senior Vice President and Chief Financial Officer, and Mr. Igoe is our Senior Vice President, General Counsel and Secretary. Your proxy permits you to direct the proxy holders to:

 

   

vote “FOR” or withhold your votes from either of the two nominees for director; and

 

   

vote “FOR,” “AGAINST” or “ABSTAIN” from the proposal to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for fiscal 2015.

All shares entitled to vote and represented by properly completed proxies received prior to the 2015 annual meeting and not revoked will be voted at the 2015 annual meeting in accordance with your instructions. If you do not indicate how your shares are to be voted on a matter, the shares represented by your properly completed proxy will be voted “FOR” the election of the two nominees for director and “FOR” the proposal to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for fiscal 2015, and in the discretion of the persons named as proxies in the manner they believe to be in the Company’s best interests as to other matters that may properly come before the 2015 annual meeting.

Revocation of Proxies

You may revoke your proxy at any time before it is exercised by (1) delivering to us a signed proxy card with a date later than the date of your previously delivered proxy, (2) voting in person at the 2015 annual meeting, or (3) sending a written revocation to our Corporate Secretary at our principal executive offices. Shares represented by valid proxies that are received prior to the 2015 annual meeting and not revoked at or prior to the 2015 annual meeting will be voted at the 2015 annual meeting.

Stockholders Entitled to Vote

Our Board has fixed April 1, 2015 as the record date for the 2015 annual meeting. You are entitled to vote (in person or by proxy) at the 2015 annual meeting if you were a stockholder of record on the record date. On the record date, we had 81,726,423 shares of common stock outstanding (each of which entitles its holder to one vote). Holders of shares of our common stock do not have cumulative voting rights.

In addition to our common stock, on the record date, we had 2,703,846 shares of our Class A Non-Voting common stock outstanding. Shares of our Class A Non-Voting common stock cannot be voted at the 2015 annual meeting.

Quorum

For all proposals on the agenda for the 2015 annual meeting, the holders of a majority of the shares of common stock issued and outstanding and entitled to vote must be present at the 2015 annual meeting in person or represented by proxy to constitute a quorum. Shares represented by all proxies

 

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received, including proxies that withhold authority for the election of a director and/or abstain from voting on a proposal, as well as broker non-votes (as described below), will be counted toward establishing a quorum.

Votes Required

For Proposal 1, each of the directors will be elected by a plurality vote of the shares of common stock present at the 2015 annual meeting in person or represented by proxy and entitled to vote. Shares for which the vote is properly withheld and broker non-votes will not be counted toward the nominee’s achievement of a plurality and will have no effect on the election of the directors.

For Proposal 2, the ratification of the selection of the independent registered public accounting firm, the affirmative vote of the holders of a majority of the votes cast is required for approval. Shares that abstain will not be counted as votes in favor of this proposal and will also not be counted as votes cast. Accordingly, abstentions will have no effect on the outcome of this proposal.

If you hold shares of common stock through a bank, broker or other nominee, that party may under certain circumstances vote your shares if you do not timely provide them with voting instructions. Banks, brokers or other nominees have discretionary authority to vote customers’ unvoted shares on routine matters. Your bank, broker or other nominee cannot vote your shares on any matter that is not considered a routine matter. Proposal 2, ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for fiscal 2015, is considered a routine matter. Proposal 1, the election of two Class II directors, is not considered a routine matter. Shares for which a bank, broker or other nominee cannot vote on a particular matter because that party does not have discretionary voting authority to do so are considered “broker non-votes” on the matter.

Solicitation of Proxies

We will bear the expenses of preparing, printing and assembling the materials used in the solicitation of proxies. In addition to the solicitation of proxies by use of the mail or the Internet, we may also use the services of some of our officers and employees (who will receive no compensation for such services in addition to their regular salaries) to solicit proxies personally and by telephone and email. Banks, brokers or other nominees will be requested to forward solicitation materials to the beneficial owners of shares of record held by them, and we will reimburse them for their reasonable expenses.

OTHER MATTERS

As of the date of this proxy statement, we know of no matter not specifically referred to above as to which any action is expected to be taken at the 2015 annual meeting and the advance notice period applicable to the 2015 annual meeting as prescribed by our By-laws has expired. If any other business should properly come before the 2015 annual meeting, the proxies will be voted in the discretion of the proxy holders. Each of the persons appointed by the enclosed form of proxy present and acting at the meeting, in person or by substitute, may exercise all of the powers and authority of the proxies in accordance with their judgment.

 

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Stockholder Proposals and Director Nominations

For 2016 Annual Meeting

Proposals of stockholders intended to be presented at the 2016 annual meeting of stockholders pursuant to Rule 14a-8 under the Exchange Act must be received by us no later than December 16, 2015 in order to be included in the proxy statement and form of proxy relating to that meeting. Proposals should be sent to SS&C Technologies Holdings, Inc., 80 Lamberton Road, Windsor, Connecticut 06095, Attention: Corporate Secretary.

In addition, our By-laws require that we be given advance notice of stockholder nominations for election to our Board and of other business that stockholders wish to present for action at an annual meeting of stockholders (other than matters included in our proxy statement in accordance with Rule 14a-8 under the Exchange Act). The required notice must contain the information required by our By-laws and be delivered by the stockholder and received by the Secretary at our principal executive offices (i) no earlier than 120 days before and no later than 90 days before the first anniversary of the date of the preceding year’s annual meeting, or (ii) if the date of the annual meeting is advanced by more than 20 days or delayed by more than 60 days from the first anniversary date, (a) no earlier than 120 days before the annual meeting and (b) no later than 90 days before the annual meeting or 10 days after the day notice of the annual meeting was mailed or publicly disclosed, whichever occurs first. Assuming the date of our 2015 annual meeting is not so advanced or delayed, stockholders who wish to make a proposal at the 2016 annual meeting (other than one to be included in our proxy statement in accordance with Rule 14a-8 under the Exchange Act) should notify us no earlier than January 29, 2016 and no later than February 28, 2016.

Householding of Proxies

The SEC has adopted rules that permit companies and intermediaries such as brokers to satisfy delivery requirements for annual reports and proxy statements with respect to two or more stockholders sharing the same address by delivering a single annual report and/or proxy statement addressed to those stockholders. This process, which is commonly referred to as “householding,” potentially provides extra convenience for stockholders and cost savings for companies. We and some brokers household annual reports and proxy materials, delivering a single annual report and/or proxy statement to multiple stockholders sharing an address unless contrary instructions have been received from the affected stockholders.

Once you have received notice from your broker or us that they or we will be householding materials to your address, householding will continue until you are notified otherwise or until you revoke your consent.

If, at any time, (1) you no longer wish to participate in householding and would prefer to receive a separate annual report and/or proxy statement in the future or (2) you and another stockholder sharing the same address wish to participate in householding and prefer to receive a single copy of our annual report and/or proxy statement, please notify your broker if your shares are held in a brokerage account or us if you hold registered shares. You can notify us by sending a written request to Investor Relations, SS&C Technologies Holdings, Inc., 80 Lamberton Road, Windsor, Connecticut 06095, or call 860-298-4500.

 

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Table of Contents

ANNUAL MEETING OF STOCKHOLDERS OF

SS&C TECHNOLOGIES HOLDINGS, INC.

May 28, 2015

GO GREEN

   e-Consent makes it easy to go paperless. With e-Consent, you can quickly access your proxy material, statements and other eligible documents online, while reducing costs, clutter and paper waste. Enroll today via www.amstock.com to enjoy online access.  

NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIAL :

The proxy statement and proxy card

are available at http://www.ssctech.com/2015annualmeeting

Please sign, date and mail

your proxy card in the

envelope provided as soon

as possible.

LOGO   Please detach along perforated line and mail in the envelope provided.   LOGO

 

     ¢       

 

 

The Board of Directors recommends a vote FOR the nominees listed in Proposal 1 to serve for a term ending in 2017 and FOR Proposal 2.

PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE x

                  FOR   AGAINST   ABSTAIN
 

1. The election of the nominees listed below as Class II directors.

  

2.  The ratification of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2015.

  ¨   ¨   ¨
      

 

NOMINEES:

            
  ¨     FOR ALL NOMINEES   

William A. Etherington

Jonathan E. Michael

            
                   
                   
 

 

¨

 

   WITHHOLD AUTHORITY

   FOR ALL NOMINEES

 

            The undersigned acknowledges receipt from the Company before the execution of this proxy of the Notice of Annual Meeting of Stockholders, a Proxy Statement for the Annual Meeting of Stockholders and the 2014 Annual Report to Stockholders.
 

 

¨

     FOR ALL EXCEPT            
       VOTE WITHHELD FROM THE FOLLOWING       
       NOMINEE:                                 .       
                
                
                     
                     
                         
                     
                     
                             
  To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method.   ¨            

 

  Signature of Stockholder        Date:        Signature of Stockholder        Date:     

 

  ¢   Note:   Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.   ¢

 


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SS&C TECHNOLOGIES HOLDINGS, INC.

 

80 Lamberton Rd

Windsor, CT 06095

 

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

 

The undersigned hereby appoints William C. Stone, Patrick J. Pedonti and Paul G. Igoe as proxy holders, each with full power of substitution, to represent and vote as designated on the reverse side, all the shares of Common Stock of SS&C Technologies Holdings, Inc. held of record by the undersigned on April 1, 2015, at the Annual Meeting of Stockholders to be held at the Company’s offices located at 675 Third Avenue, New York, NY 10017, at 9:00 a.m. on May 28, 2015, or any adjournment or postponement thereof.

 

If you sign and return this proxy card but do not give any direction, this proxy will be voted FOR the nominees listed in Proposal 1, FOR Proposal 2, and in the discretion of the proxies upon such other matters as may properly come before the Annual Meeting and at any adjournment or postponement thereof.

 

(Continued and to be signed on the reverse side)

 

 
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