DEFR14A 1 formdefr14a.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 14A

 

Proxy Statement Pursuant to Section 14(a) of

the Securities Exchange Act of 1934 (Amendment No.__)

 

Filed by the Registrant ☒

Filed by a Party other than the ☐ Registrant

 

Check the appropriate box:

 

  ☐ Preliminary Proxy Statement
  ☐ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
  ☐ Definitive Proxy Statement
  ☒ Definitive Additional Materials
  ☐ Soliciting Material Pursuant to §240.14a-12

 

 

OVERSEAS SHIPHOLDING GROUP, INC.
(Name of Registrant as Specified In Its Charter)
 
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

 

Payment of Filing Fee (Check the appropriate box):
☒ No fee required.
☐ Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
☐ Fee paid previously with preliminary materials.

 

 

 

 

 

 

EXPLANATORY NOTE

 

To the Stockholders of Overseas Shipholding Group, Inc.:

 

We recently mailed to our Stockholders the Proxy Statement for our upcoming Annual Meeting of Stockholders to be held on June 1, 2022. The Proxy Statement contained an error: specifically, the table entitled, “OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END,” inadvertently omitted some information for Mr. O’Halloran. A corrected table appears below. We apologize for any inconvenience.

 

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END

 

The following table provides information as of December 31, 2021 concerning the holdings of stock options and stock awards by the NEOs. This table includes unexercised and unvested option and stock awards. The market value of the stock awards is based on the market price of OSG’s Class A Common Stock at the close of business on December 31, 2021, which was $1.88 per share.

 

    Option Awards   Stock Awards  
Name   Grant Date   Number of Securities Underlying Unexercised Options Exercisable (#)     Number of Securities Underlying Unexercised Options Unexercisable (#)     Option Exercise Price     Option Expiration Date     Number of Shares or Units of Stock That Have Not Vested (#)     Market Value of Shares or Units of Stock That Have Not Vested ($)     Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights that Have Not Vested (#)     Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights that Have Not Vested ($)  
Norton   3/23/21     —       —       —       —       180,084 (3)     338,558       228,107 (5)     428,841  
    3/23/20     —       —       —       —       174,381 (3)     327,836       130,785 (4)     245,876  
    3/22/19     —       —       —       —       52,588 (3)     98,865       —       —  
    2/08/19     612,745 (2)     —     $ 1.82       2/08/29       —       —       —       —  
    2/08/18     494,118 (2)     —     $ 1.70       2/08/28       —       —       —       —  
    3/23/17     17,637 (1)     —     $ 4.04       3/23/27       —       —       —       —  
    8/03/16     297,818 (1)     —     $ 5.57       8/03/26       —       —       —       —  
Trueblood   3/23/21     —       —       —       —       54,025 (3)     101,567       99,045 (5)     186,205  
    3/23/20     —       —       —       —       61,546 (3)     115,706       46,160 (4)     86,781  
    3/22/19     —       —       —       —       17,809 (3)     33,481       —       —  
O’Halloran   3/23/21     —       —       —       —       47,722 (3)     89,717       87,490 (5)     164,482  
    3/23/20     —       —       —       —       54,365 (3)     102,206       40,774 (4)     76,655  
    3/22/19     —       —       —       —       15,645 (3)     29,413       —       —  
    3/23/17     18,078 (1)     —     $ 4.04       3/23/27       —       —       —       —  
Mote   3/23/21     —       —       —       —       47,722 (3)     89,717       87,490 (5)     164,482  
    3/23/20     —       —       —       —       54,365 (3)     102,206       40,774 (4)     76,655  
    3/22/19     —       —       —       —       15,645 (3)     29,413       —       —  
    3/23/17     18,078 (1)     —     $ 4.04       3/23/27       —       —       —       —  

   

(1)These options to purchase shares of Class A Common Stock became exercisable on the first, second, and third anniversaries of the grant date, respectively.
(2)This represents Mr. Norton’s annual bonus, awarded in fully vested options in accordance with the terms of his prior employment agreement.
(3)One-third of these time-based RSUs vested or will vest on the first, second and third anniversary of the grant date.
(4)These performance-based RSU awards are comprised of two separate grants, both of which become fully vested when the performance periods end on December 31, 2022. The award based upon TSR is 50% of the grant total and is subject to OSG’s three-year TSR performance relative to the performance of the companies that comprise a combination of the Oil & Gas Storage & Transportation and Marine GICS Sub Industries Indexes. The award based upon ROIC is 50% of the grant total and is subject to OSG’s cumulative ROIC relative to OSG’s budgeted ROIC for the performance period. As of year-end 2021, the achievement level for the TSR metric was trending positive and above the 75th percentile and the achievement level for the ROIC metric is trending between threshold and target, as depicted in the following table:

 

 

 

 

2020 Grant           Share payout if the current trends are
Measurement Date 12/31/2022       # of shares   realized
Name   PRSU Name   Target   Trend    
Norton   TSR   130,785   130,785   130,785
    ROIC   130,785   —    
Trueblood   TSR   46,160   46,160   46,160
    ROIC   46,160   —    
O’Halloran   TSR   40,774   40,774   40,774
    ROIC   40,774   —    
Mote   TSR   40,774   40,774   40,774
    ROIC   40,774   —    

 

(5)These performance-based RSU awards are comprised of three separate grants. The TSR and ROIC awards both cliff vest with performance periods ending on December 31, 2023. The award based upon TSR is subject to OSG’s three-year TSR performance relative to the performance of the companies that comprise a combination of the Oil & Gas Storage & Transportation and Marine GICS Sub Industries Indexes. The award based upon ROIC is subject to OSG’s cumulative ROIC relative to OSG’s budgeted ROIC for the performance period. As of year-end 2021, the achievement level for the TSR metric was trending toward a target payout and the achievement level for the ROIC metric was trending below the threshold. The Special 2021 Grant will vest with a performance period ending on June 30,2022. As of year-end 2021, the achievement level of the Special 2021 Grant was trending at two-thirds of the shares vesting as represented below.

 

2021 Grant               Share payout if the current trends are
Measurement Date 12/31/2023       # of shares   realized
Name   PRSU Name   Target   Trend    
Norton   TSR   90,042   90,042    
    ROIC   90,042   —   228,107
    Special   207,097   138,065    
Trueblood   TSR   27,012   27,012    
    ROIC   27,012   —   99,045
    Special   108,050   72,033    
O’Halloran   TSR   23,861   23,861    
    ROIC   23,861   —   87,490
    Special   95,444   63,629    
Mote   TSR   23,861   23,861    
    ROIC   23,861   —   87,490
    Special   95,444   63,629