<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/X/ Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.142-12
BINKS MANUFACTURING COMPANY
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
MATTHEW T. MYREN
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement)
Payment of Filing Fee (Check the appropriate box):
/X/ $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(i)(2)
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3)
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4)
and 0-11
1) Title of each class of securities to which transaction applies:
------------------------------------------------------------------------
2) Aggregate number of securities to which transaction applies:
------------------------------------------------------------------------
3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11:*
------------------------------------------------------------------------
4) Proposed maximum aggregate value of transaction:
------------------------------------------------------------------------
* Set forth the amount on which the filing fee is calculated and state how it
was determined.
/ / Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
------------------------------------------------------------------------
2) Form, Schedule or Registration Statement No.:
------------------------------------------------------------------------
3) Filing Party:
------------------------------------------------------------------------
4) Date Filed:
------------------------------------------------------------------------
<PAGE>
BINKS MANUFACTURING COMPANY
9201 WEST BELMONT AVENUE
FRANKLIN PARK, ILLINOIS 60131
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON APRIL 26, 1994
TO THE STOCKHOLDERS OF
BINKS MANUFACTURING COMPANY:
Notice is hereby given that the Annual Meeting of Stockholders of BINKS
MANUFACTURING COMPANY (the "Company") will be held at the offices of the
Company, 9201 West Belmont Avenue, Franklin Park, Illinois, on Tuesday, April
26, 1994 at 10:00 A.M., for the purpose of considering and acting upon the
following matters:
1. The election of directors of the Company; and
2. The transaction of such other business as may properly be brought before
the meeting.
Stockholders of record at the close of business on March 4, 1994 are
entitled to notice of and to vote at the Annual Meeting or any adjournment
thereof.
Whether or not you expect to be present at the Annual Meeting, you are
requested to execute and return the enclosed proxy.
By order of the Board of Directors,
DORAN J. UNSCHULD, SECRETARY
March 30, 1994
<PAGE>
BINKS MANUFACTURING COMPANY
9201 WEST BELMONT AVENUE, FRANKLIN PARK, ILLINOIS 60131
--------------
MARCH 30, 1994
--------------
PROXY STATEMENT
This proxy statement and the accompanying proxy are being furnished for the
solicitation of proxies by the Board of Directors of Binks Manufacturing Company
(the "Company") for use at the Annual Meeting of Stockholders to be held on
Tuesday, April 26, 1994 at 10:00 A.M., at the offices of the Company, 9201 West
Belmont Avenue, Franklin Park, Illinois, or any adjournment thereof, for the
purposes set forth in the accompanying Notice of Annual Meeting of Stockholders.
The proxy statement and accompanying proxy are being first sent to stockholders
on or about March 30, 1994. Solicitation will be by mail and may also be by
telephone, telegraph or in person by employees of the Company, who will receive
no additional compensation for such solicitation. To assist in the solicitation,
the Company has retained Morrow & Co., Inc. at a cost of approximately $5,000
plus the reimbursement of customary expenses. The costs of solicitation will be
borne by the Company.
ANNUAL REPORT
The Annual Report of Binks Manufacturing Company for the fiscal year ended
November 30, 1993 is enclosed herewith.
SOLICITATION AND REVOCATION OF PROXIES
The enclosed proxy may be revoked by the stockholder at any time prior to
the voting thereof by delivery of written notice of revocation to the Secretary
of the Company. It may also be revoked by a stockholder attending and voting in
person at the Annual Meeting or by delivery of a later dated proxy to the
Secretary of the Company prior to such voting.
VOTING SECURITIES
As of March 4, 1994, the record date for stockholders entitled to notice of
and to vote at the Annual Meeting, the outstanding voting securities of the
Company consisted of 3,088,837 shares of Capital Stock, each share being
entitled to one vote on each matter presented at the meeting.
1
<PAGE>
As of March 4, 1994, the following persons were believed by the Company to
beneficially own (as such term is defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")) more than 5% of the
outstanding shares of Capital Stock of the Company:
<TABLE>
<CAPTION>
NAME AND ADDRESS OF NUMBER OF PERCENT OF
BENEFICIAL OWNER SHARES(A) CLASS
- --------------------------------------------- ------------------ -----------
<S> <C> <C>
Burke B. Roche
9201 West Belmont Avenue
Franklin Park, IL 60131 814,319(b)(c)(d) 26.36%
John Francis Roche, Jr.
Savings and Profit Sharing Fund
9201 West Belmont Avenue
Franklin Park, IL 60131 448,912(d) 14.53%
William W. Roche
14340 Proton Road
Dallas, TX 75234 352,028(b) 11.40%
Frances R. Watts
434 Clinton Place
River Forest, IL 60305 346,758(b) 11.40%
Dimensional Fund Advisors, Inc.
1299 Ocean Avenue, Suite 650
Santa Monica, CA 90401 200,668(e) 6.50%
Tweedy, Browne Company L.P.,
TBK Partners, L.P., and
Vanderbilt Partners, L.P.
52 Vanderbilt Avenue
New York, New York 10017 208,473(f) 6.75%
Pioneering Management Corporation
60 State Street
Boston, MA 02109 155,909(g) 5.05%
<FN>
- ---------
(a) The nature of the beneficial ownership for shares shown in this column is
sole voting and investment power, except as set forth in the following
notes.
(b) Includes 346,758 shares held jointly by Messrs. Burke B. and William W.
Roche and Mrs. Frances R. Watts as trustees under a voting trust agreement
dated December 15, 1948, the term of which has been extended to December
14, 1994 (the "Voting Trust"). The trustees share voting power with respect
to these shares, a majority of the trustees being necessary to vote such
shares. Of the shares held in the Voting Trust, Mr. Burke B. Roche is the
direct beneficial owner of 135,745 shares, Mr. William W. Roche is the
direct beneficial owner of 12,749 shares and Mrs. Frances R. Watts is the
direct beneficial owner of 55,159 shares. Mrs. Watts is the sister of
Messrs. Burke B. and William W. Roche.
(c) Mr. Burke B. Roche's holdings do not include 656 shares owned by his wife's
estate.
(d) Includes 448,912 shares held by the John Frances Roche, Jr. Savings and
Profit Sharing Fund of the Company of which Mr. Burke B. Roche is the
trustee and exercises sole voting power.
(e) Based on a Schedule 13G filed with the Commission, dated February 9, 1994.
(f) Based upon a statement on Schedule 13D filed with the Commission, dated
October 2, 1993. According to such Schedule 13D, shares beneficially owned
by the group comprised of Tweedy, Browne Company L.P. ("TBC"), TBK
Partners, L.P. ("TBK") and Vanderbilt Partners, L.P. ("Vanderbilt") include
</TABLE>
2
<PAGE>
<TABLE>
<S> <C>
(i) 181,164 shares held in accounts of TBC (the "TBC Accounts"), a
registered broker-dealer and investment adviser, over which TBC has shared
dispositive power over all shares and sole voting power over 159,159
shares, (ii) 23,317 shares held by TBK, a private investment partnership,
over which TBK has sole voting and sole dispositive power and (iii) 3,992
shares held by Vanderbilt, a private investment partnership, over which
Vanderbilt has sole voting and sole dispositive power. Each of TBC, TBK and
Vanderbilt has disclaimed beneficial ownership of the shares held in the
TBC Accounts.
(g) Based upon a statement on Schedule 13G filed with the Commission, dated
February 11, 1994.
</TABLE>
PROPOSAL 1: ELECTION OF DIRECTORS
INFORMATION REGARDING DIRECTORS
The Company presently has five directors who are divided into three classes
serving staggered three-year terms. One director is to be elected at this Annual
Meeting to hold office for a term expiring at the 1997 Annual Meeting. Mr.
William W. Roche, who is presently a director of the Company and whose term
expires at this Annual Meeting, has been nominated to fill such position. Unless
otherwise specified in the proxy, it is the present intention of the persons
named in the accompanying form of proxy to vote such proxies for their election.
Directors shall be elected by a plurality of the votes cast in the election
of directors. Under applicable Delaware law, in tabulating the vote, broker
non-votes will be disregarded and will have no effect on the outcome of the
vote.
Although it is not anticipated, if Mr. William W. Roche is unable or
unwilling to serve as a director, proxies will be voted for such other person or
persons as the Board of Directors may determine.
Certain information with respect to the directors and executive officers is
shown below.
<TABLE>
<CAPTION>
CAPITAL STOCK OF THE
COMPANY
BENEFICIALLY OWNED ON
MARCH 4, 1994(1)
---------------------------
PERCENT OF
NUMBER OF CAPITAL STOCK
DIRECTOR SHARES OUTSTANDING
------------------------------------------------------------ --------- -------------
<C> <S> <C> <C>
BURKE B. ROCHE, age 80, has been a director of the Company 814,319(2) 26.36%
since 1948 and his present term of office expires at the
1996 Annual Meeting. Since 1949, he has been President and
Chief Executive Officer of the Company. Mr. Roche is also a
director of certain subsidiaries of the Company, including
Binks-Bullows, Ltd. (Brownhills, England), Sames S.A.
(Grenoble, France) and Binks International S.A. (Waterloo,
Belgium).
* WILLIAM W. ROCHE, age 68, has been a director of the Company 352,028(2) 11.40%
since 1958 and his present term of office expires at this
Annual Meeting. Since 1960, he has been the Southwest
Regional Manager of the Company. Since 1952, he has been
Assistant Secretary and Assistant Treasurer of the Company.
He is the brother of Mr. Burke B. Roche.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
CAPITAL STOCK OF THE
COMPANY
BENEFICIALLY OWNED ON
MARCH 4, 1994(1)
---------------------------
PERCENT OF
NUMBER OF CAPITAL STOCK
DIRECTOR SHARES OUTSTANDING
------------------------------------------------------------ --------- -------------
<C> <S> <C> <C>
DORAN J. UNSCHULD, age 70, has been a director of the 5,067(3) **
Company since 1982 and his present term of office expires
at the 1996 Annual Meeting. Mr. Unschuld has been employed
by the Company in various positions since 1952 and has been
a Vice President since 1971 and Secretary of the Company
since 1965.
DONALD G. MEYER, age 59, has been a director of the Company None **
since 1990 and his present term of office expires at the
1995 Annual Meeting. Mr. Meyer has been Dean of the School
of Business Administration at Loyola University, Chicago
since 1977.
JOHN J. SCHORNACK, age 63, has been a director since None **
February of 1994 when he was appointed by the Board of
Directors to fill a vacancy created by the death of J.
Milton Moon. His present term expires at the 1995 Annual
Meeting. Mr. Schornack has been the Chief Executive Officer
of KraftSeal Corporation, a manufacturer of tamper-proof
food container lids, since 1991. Prior to that, Mr.
Schornack was Vice Chairman at Ernst & Young, an
international public accounting firm.
Directors and Executive Officers as a group (8 persons). 823,419(4) 26.66%
<FN>
- ---------
* Nominee for election. If elected at this Annual Meeting his term will
expire at the Company's 1996 Annual Meeting.
** Less than 1.0% of the Company's outstanding Capital Stock.
(1) The information contained in this column is based upon information
furnished to the Company by the individuals referred to above. The nature
of beneficial ownership for shares shown in this column is sole voting and
investment power, except as set forth in the following notes.
(2) Reference is made to the table on page 2 hereof and the associated notes
regarding the nature of Messrs. Burke B. and William W. Roche's beneficial
ownership of the Company's Capital Stock.
(3) Includes 4,552 shares held in the Voting Trust described in note (b) on
page 2 hereof. Mr. Unschuld's holdings do not include 1,989 shares owned by
Mr. Unschuld's wife, of which 1,838 shares are held in the Voting Trust,
with respect to which he has neither voting nor investment power.
(4) In addition to the shares beneficially owned by the directors of the
Company listed above, two other executive officers of the Company and
members of their immediate families beneficially own a total of 24,591
shares, of which 21,276 shares are deposited in the Voting Trust. Of the
shares not deposited in such Voting Trust, 1,418 shares are owned by such
officers with sole voting and investment power, and 1,897 shares are owned
by members of their immediate families.
</TABLE>
4
<PAGE>
Pursuant to Section 16 of the Exchange Act, the Company's officers,
directors and holders of more than ten percent of the Company's Capital Stock
are required to file reports of their trading in equity securities of the
Company with the Commission, the Company and the American Stock Exchange. Based
solely on its review of the copies of such reports received by it, or written
representations from certain reporting persons that no reports on Form 5 were
required for those persons, the Company believes that during 1993 all filing
requirements applicable to its officers, directors, and more than ten percent
shareholders were complied with, except that Burke B. Roche, William W. Roche
and Frances R. Watts (collectively, the "Trustees") did not timely file on Form
5 to report withdrawals from the Binks Manufacturing Voting Trust, for which the
aforementioned serve as trustees, by immediate family members. The withdrawals
mentioned above were subsequently reported by each of the Trustees on Form 5,
which reports were filed late with the Commission.
EXECUTIVE COMPENSATION
The following table sets forth separately, for the fiscal years indicated,
each component of compensation paid or awarded to, or earned by, the Chief
Executive Officer ("CEO") of the Company and each of the four most highly
compensated executive officers who were serving as executive officers at the end
of the last fiscal year, other than the CEO (collectively referred to herein as
the "Named Executive Officers").
SUMMARY COMPENSATION TABLE(1)
<TABLE>
<CAPTION>
ANNUAL
COMPENSATION
NAME AND ---------------------- ALL OTHER
PRINCIPAL POSITION YEAR SALARY($) BONUS($) COMPENSATION($)(2)
- ----------------------------------------------------------- --------- --------- ----------- -------------------
<S> <C> <C> <C> <C>
Burke B. Roche 1993 252,200 0 61,193
President, Chief Executive 1992 252,200 0 66,961
Officer and Director 1991 252,200 20,000
Doran J. Unschuld 1993 136,700 10,000 30,492
Vice President, Secretary 1992 136,700 11,000 31,362
and Director 1991 133,783 14,000
William W. Roche 1993 134,900 9,000 98,821
Southwest Regional Manager, 1992 134,900 11,000 42,615
Assistant Treasurer, Assistant 1991 131,983 14,000
Secretary and Director
1993 113,200 8,000 33,063
Ernest F. Watts(3) 1992 113,200 9,000 31,912
Vice President of Marketing 1991 110,700 12,000
Stephen R. Kennedy(3) 1993 102,700 7,500 34,512
Marketing Manager of Standard 1992 102,700 7,500 32,964
Equipment, Assistant 1991 100,200 10,000
Secretary and Assistant
Treasurer
<FN>
- ---------
(1) Compensation paid to executive officers for the fiscal year ended November
30, 1993, other than salary, bonus, and other compensation reflected in the
table, does not exceed the minimum amounts required to be reported under
the Commission's rules.
(2) Includes amounts expensed with respect to post-retirement payments under
employment contracts between the Company and the CEO and Named Executive
Officers. Pursuant to the Commission's transition rules, information for
1991 is omitted from this column.
(3) Mr. Watts is a nephew of, and Mr. Kennedy is married to a niece of, Messrs.
Burke B. and William W. Roche.
</TABLE>
5
<PAGE>
PROFIT SHARING PLAN
All employees of the Company who are over age 21 and have completed one year
of service with the Company are eligible to participate in the John Francis
Roche, Jr. Savings and Profit Sharing Fund (the "Profit Sharing Plan"), a
defined contribution retirement savings program. Participants in the Profit
Sharing Plan must contribute at least 2 1/2% but no more than 5% of their
compensation, up to a limit of $200.00 per year. The Company will contribute to
the Profit Sharing Plan each year the least of (i) 15% of total compensation (as
defined in the Profit Sharing Plan), (ii) 18% of the Company's adjusted net
income or (iii) six times the total participant contributions.
The participants' accounts are held under a trust and are invested by the
trustee, Burke B. Roche, in accordance with the terms of the Profit Sharing
Plan. Participants' interests in the Company's contributions become fully vested
and nonforfeitable upon death, disability, attainment of age 60 or after seven
years of participation in the Profit Sharing Plan. Upon retirement, other
termination or disability, a participant receives the total value of funds
resulting from his or her savings and vested Company contributions in either a
single payment or substantially equal installments not less frequently than
semi-annually. There are 793 participants in the Profit Sharing Plan, including
executive officers. There were no Company contributions to the Profit Sharing
Plan for the year ended November 30, 1993.
REPORT OF THE BOARD OF DIRECTORS
REGARDING EXECUTIVE COMPENSATION
OVERVIEW AND PHILOSOPHY
The fundamental philosophy of the Company's compensation program is to offer
competitive compensation opportunities for all employees, including senior
management, which are based on the individual's contribution and personal
performance. The objectives of the Company's compensation program are to align
compensation with business goals and performance, and to enable the Company to
attract and retain superior talent and reward performance.
The Company also believes it is important to align executive officers'
interests with the success of the Company by placing a portion of pay at risk,
thus making payment dependent upon corporate performance. The compensation of
the Company's CEO and Named Executive Officers is reviewed and approved annually
by the Company's Board of Directors (the "Board"), and is linked to the
Company's financial performance. Fifteen percent or more of executive
management's compensation may consist of a bonus which is influenced by the
Company's annual performance.
In determining compensation levels, salary and bonus components are
initially reviewed by Burke B. Roche, CEO of the Company. Mr. Roche then makes
his recommendations to the full Board of Directors. The Board studies the
recommendations, along with other information on individual and corporate
performance, and votes on compensation levels for the next fiscal year. Only
those members of the Board of Directors who are not officers of the Company vote
on matters relating to the compensation of the CEO and Named Executive Officers.
EXECUTIVE OFFICER COMPENSATION PROGRAM
The Company's compensation program consists of a cash salary and annual
bonus payment based upon performance. There are two main components to the
Company's executive compensation program, both determined by corporate and
individual performance:
- Base salary compensation
- Annual incentive compensation
In determining salaries, the CEO and the Board take into account individual
experience, individual performance, total contribution to the Company's long
term success, and the results of the Company's performance. Upon recommendations
of the CEO, the Board evaluates personal and corporate performance on a yearly
basis and awards annual cash bonuses to those executives whose performance
during the year impacted favorably on the results of the Company as a whole. In
1993, the following measures were considered by the CEO in recommending annual
bonuses, and by the Board in approving such bonuses: corporate revenues,
corporate net income and general corporate performance relative to market
conditions in the Company's industry.
6
<PAGE>
CHIEF EXECUTIVE OFFICER COMPENSATION
The salary of Mr. Burke B. Roche, the Company's CEO, was set at $252,200 for
fiscal 1993, the same amount paid in 1992 and 1991. His salary was determined
based on corporate results over the past five years, plus a review of the CEO's
individual performance. Mr. Roche elected not to receive a bonus in 1993, and
suggested that his salary remain the same as that which was paid to him in 1992.
In making decisions regarding CEO compensation, the Board took into account
results of operations of the Company, conditions in the capital goods industry
as a whole and Mr. Roche's long-term contributions to the Company. Mr. Roche has
been president and CEO of the Company since 1949.
BOARD OF DIRECTORS
Burke B. Roche
William W. Roche
Doran J. Unschuld
Donald G. Meyer
PERFORMANCE GRAPH
The graph below compares the cumulative total shareholder return on the
Common Stock of the Company for the last five fiscal years with the cumulative
total return on the S&P 500 Index and the S&P Machine Tools Index over the same
period (assuming the investment of $100 in the Company's Common Stock, the S&P
500 Index and the S&P Machine Tools Index on November 30, 1988, and reinvestment
of all dividends).
[GRAPHIC]
(1) The S&P 500 Index and the S&P Machine Tools Index were obtained from
Standard and Poor's Compustat Services, Inc.
7
<PAGE>
EXECUTIVE RETIREMENT INCOME CONTRACTS
The Company has entered into individual Executive Retirement Income
Contracts with certain executives, including Messrs. Burke B. Roche, Doran J.
Unschuld, William W. Roche, Ernest F. Watts and Stephen R. Kennedy, in each case
providing for payment of annual retirement benefits to the executive (or his
beneficiary in the event of his death) in an amount equal to 1 1/2% of the
executive's average annual salary (exclusive of bonuses, profit sharing and
other employee benefits) for the five years preceding retirement, multiplied by
the number of full fiscal years of service in the employ of the Company.
Retirement payments terminate fifteen (ten in the case of Mr. Burke B. Roche)
years after retirement or in the event the executive engages in specified
competitive activities following retirement. In addition, no retirement benefits
are payable if the executive voluntarily resigns prior to age 65 without the
consent of the Company, or if he is dismissed by the Company for specified
cause.
The following table shows the amount of annual retirement benefits payable
under these arrangements at various levels of final five year average salary and
for different years of service.
PENSION PLAN TABLE
<TABLE>
<CAPTION>
YEARS OF SERVICE
-------------------------------------------------------------------
REMUNERATION 5 15 25 35 45 50
- ------------- --------- --------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 100,000 $ 7,500 $ 22,500 $ 37,500 $ 52,500 $ 67,500 $ 75,000
125,000 9,375 28,125 46,875 65,625 84,375 93,750
150,000 11,250 33,750 56,250 78,750 101,250 112,500
175,000 13,125 39,975 65,625 91,875 118,125 131,250
200,000 15,000 45,000 75,000 105,000 135,000 150,000
225,000 16,875 50,625 84,375 118,125 151,875 168,750
250,000 18,750 56,250 93,750 131,250 168,750 187,500
275,000 20,625 61,875 103,125 144,375 185,625 206,250
</TABLE>
As of November 30, 1993, the number of full fiscal years of service with the
Company for officers named in the Cash Compensation Table and the amount of
salary paid to such officers during the fiscal year ended November 30, 1993 are
as follows: Burke B. Roche--54 years, $252,200; Doran J. Unschuld--41 years,
$136,700; William W. Roche--46 years, $134,900; Ernest F. Watts--34 years,
$113,200; and Stephen R. Kennedy--33 years, $102,700. Benefit amounts shown in
this table are computed on a straight line annuity basis and are not subject to
any deduction for Social Security benefits or other offsets.
CHANGE IN CONTROL ARRANGEMENTS
The Company has entered into individual Employment Security Agreements with
current executive officers and certain other key employees, including Messrs.
Burke B. Roche, Doran J. Unschuld, William W. Roche, Ernest F. Watts and Stephen
R. Kennedy, in each case providing for severance payments by the Company in the
event that within three years after a "change in control" (as defined) either
the Company terminates the individual's employment for other than "good cause"
(as defined), disability, death, or normal retirement, or the individual
terminates his employment for "good reason" (as defined). Subject to certain
limitations, the amount of the severance payment equals three (two for employees
other than executive officers) times the sum of (i) such employee's annual
salary at the rate in effect at the time of termination, plus (ii) the maximum
bonus such employee could earn for the fiscal year in which the termination
occurs. A "change in control" will in general be deemed to occur where a third
person becomes the owner of 20% or more of the Capital Stock of the Company or
where a corporate transaction occurs, the effect of which is that persons who
were directors of the Company before the transaction cease to constitute a
majority of the Board of Directors. If any of the executive officers named above
had been terminated following a "change in control" of the Company during the
fiscal year ended November 30, 1993, the amount of the severance payment paid to
such officer would have been as follows: Burke B. Roche--$756,600;
8
<PAGE>
Doran J. Unschuld--$444,100; William W. Roche--$431,700; Ernest F.
Watts--$363,600; and Stephen R. Kennedy--$330,600. All executive officers as a
group (six persons) would have been entitled to receive severance payments in
the aggregate amount of $2,322,600.
Pursuant to the provisions of the Binks Death Benefit Plan for Executive
Personnel, but subject to the conditions therein set forth, the beneficiaries of
each participant may become entitled to receive 120 monthly installments equal
to an amount not in excess of one-twelfth of 20% of the average base annual
salary of such participant during the period from December 1, 1954 to the date
of his retirement or death. Mr. Burke B. Roche is presently the only participant
in this plan.
DIRECTORS' FEES
Each director who is not also an employee receives a director's fee of
$15,000 per annum plus reimbursement of expenses relating to attendance at
meetings.
During 1993, Messrs. Burke B. Roche and Doran J. Unschuld each served on the
board of directors of Binks-Bullows, Ltd. and received a director's fee of
$4,120. Mr. Ernest F. Watts served on the board of directors of Binks
Manufacturing Company of Canada, Limited and received a director's fee of
$2,500.
INFORMATION REGARDING BOARD OF DIRECTORS' MEETINGS AND COMMITTEES
The Board of Directors held five meetings during 1993. The Audit Committee
of the Board consists of Burke B. Roche, Donald G. Meyer and John J. Schornack.
The Audit Committee is responsible for recommending to the Board of Directors
the engagement of independent auditors for the Company and reviewing with the
independent auditors the plan for and results of the auditing engagement. The
Audit Committee also reviews the plan for and results of the Company's internal
audits. The Audit Committee met two times during 1993. The Board of Directors
does not have a standing nominating committee. All directors attended at least
75% of the meetings of the Board of Directors, and of committees on which they
served, held during 1993.
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
During fiscal 1993, decisions regarding executive compensation were reviewed
by the entire Board of Directors. Burke B. Roche, Doran J. Unschuld and William
W. Roche are all currently executive officers of the Company. During fiscal
1993, these officers also served on the Board of Directors of the Company.
Although these directors were present during compensation discussions by the
Board, they did not vote on compensation decisions regarding themselves or the
other Named Executive Officers.
ACCOUNTING INFORMATION
KPMG Peat Marwick has been selected by the Audit Committee and the Board of
Directors of the Company to serve as its independent public accountant for the
fiscal year ending November 30, 1994, as it has served for many years past. A
representative of that firm will be present at the Annual Meeting and have an
opportunity to make a statement if such person desires to do so and to respond
to appropriate questions of stockholders.
OTHER MATTERS
Proxies will be voted for the election of the above named nominees as
directors unless otherwise indicated on the proxy. Management does not know of
any other matters which are likely to be brought before the Annual Meeting. If
any other matters properly come before the meeting, it is the intention of the
persons named in the enclosed proxy to vote such proxy in accordance with their
judgment on such matters.
STOCKHOLDER PROPOSALS FOR THE 1995 ANNUAL MEETING
NOMINATIONS FOR THE BOARD OF DIRECTORS
The Company's By-Laws provide that written notice of proposed stockholder
nominations for the election of directors at an Annual Meeting must be given to
the Secretary of the Company no earlier than February 1 and no later than
February 25 immediately preceding the meeting. Notice to the Company from a
stockholder who proposes to nominate a person for election as a director must
contain certain information about that person, including age, business and
residence addresses and such other information as would be
9
<PAGE>
required to be included in a proxy statement soliciting proxies to nominate that
person. If the Chairman of the Annual Meeting determines that a person was not
nominated in accordance with the foregoing procedures, such person shall not be
eligible for election as a director.
OTHER PROPOSALS
If any stockholder intends to present a proposal to be considered for action
at the 1995 Annual Meeting of Stockholders and to be included in the Company's
proxy materials, the proposal must be in proper form and received by the
Secretary of the Company on or before December 5, 1994, for review and
consideration for inclusion in the Company's proxy statement and form of proxy
relating to that meeting.
In addition, the Company's By-Laws require that written notice of proposals
by stockholders to be presented at an Annual Meeting be delivered to the
Secretary of the Company no earlier than February 1 and no later than February
25 immediately preceding the meeting. Such notice to the Company must set forth
(i) a brief description of the business desired to be brought before the Annual
Meeting and the reasons for conducting such business at the Annual Meeting, (ii)
the name and record address of the stockholder proposing such business, (iii)
the number of shares beneficially owned by the stockholder and (iv) any material
interest of the stockholder in such business. If the Chairman of the Annual
Meeting determines that business was not properly brought before the meeting in
accordance with the foregoing procedures, such business shall not be transacted.
By order of the Board of Directors,
Doran J. Unschuld, Secretary
THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER SOLICITED HEREBY
WHO SO REQUESTS IN WRITING A COPY OF THE COMPANY'S ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED NOVEMBER 30, 1993 (EXCEPT THE EXHIBITS THERETO, WHICH WILL BE
PROVIDED UPON PAYMENT OF A REASONABLE CHARGE) AS FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION. REQUESTS FOR THE ANNUAL REPORT ON FORM 10-K SHOULD BE SENT
TO THE COMPANY AT ITS ADDRESS SET FORTH HEREIN, DIRECTED TO THE ATTENTION OF
BURKE B. ROCHE, PRESIDENT AND CHIEF EXECUTIVE OFFICER, OR DORAN J. UNSCHULD,
SECRETARY.
10
<PAGE>
BINKS MANUFACTURING COMPANY
PROXY FOR ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON APRIL 26,
1994
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
Burke B. Roche, Doran J. Unschuld and Donald G. Meyer, or any
of them, with full power of substitution, are hereby authorized to
vote the shares of Capital Stock of Binks Manufacturing Company
(the "Company") which the undersigned is entitled to vote at the
Annual Meeting of Stockholders to be held at the offices of the
Company, 9201 West Belmont Avenue, Franklin Park, Illinois, on
April 26, 1994, at 10:00 A.M., and at all adjournments thereof, as
follows:
<TABLE>
<S> <C> <C> <C>
1. ELECTION OF DIRECTORS / / FOR the nominee listed below / / WITHHOLD authority to vote for
the nominee listed below
William W. Roche
2. In their discretion, the proxies are authorized to vote upon such other matters as may properly come before the
meeting.
(Please sign and date this proxy on the reverse side hereof and return promptly using the enclosed envelope.)
</TABLE>
<PAGE>
(continued from reverse side)
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED AS DIRECTED ON THE REVERSE
SIDE HEREOF.
IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED "FOR" PROPOSAL (1) AS
SPECIFIED ON THE REVERSE SIDE.
Please sign your name or names on the signature lines below in the exact form
appearing hereon.
___________________________________
(Signature(s) of Stockholder(s))
___________________________________
(Signature(s) of Stockholder(s))
<TABLE>
<S> <C>
PLEASE DATE, SIGN AND RETURN THIS PROXY PROMPTLY DATED: ------------------------------------------, 1994
</TABLE>
