SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
(Amendment No. )
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[ ] Confidential, for use of the Commission Only
(as permitted by Rule 14a-6(e)(2))
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Section
240.14a-12
Synovus Financial Corp.
- - ------------------------------------------------------------------------------
(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](R)
SYNOVUS(R)
FINANCIAL CORP.
JAMES H. BLANCHARD
CHAIRMAN OF THE BOARD
March 16, 2000
Dear Shareholder:
You are cordially invited to attend our Annual Meeting of Shareholders at
10:00 a.m. on Thursday, April 20, 2000, in the South Hall of the Columbus,
Georgia Convention & Trade Center. Enclosed with this Proxy Statement are
your proxy card and the 1999 Annual Report.
We hope that you will be able to be with us and let us give you a review of
1999. Whether you own a few or many shares of stock and whether or not you plan
to attend in person, it is important that your shares be voted on matters that
come before the meeting. To make sure your shares are represented, we urge you
to vote promptly.
Thank you for helping us make 1999 a good year. We look forward to your
continued support in 2000 and another good year.
Sincerely yours,
/s/James H. Blanchard
JAMES H. BLANCHARD
Synovus Financial Corp. Post Office Box 120 Columbus, Georgia 31902-0120
SYNOVUS(R)
FINANCIAL CORP.
NOTICE OF THE 2000 ANNUAL MEETING OF SHAREHOLDERS
TIME............... 10:00 a.m. E.T.
Thursday, April 20, 2000
PLACE.............. South Hall
Columbus, Georgia Convention & Trade Center
801 Front Avenue
Columbus, Georgia 31901
ITEMS OF BUSINESS.. (1) To elect three directors to serve until the Annual
Meeting of Shareholders in 2003.
(2) To approve the Synovus Financial Corp. 2000
Long-Term Incentive Plan.
(3) To transact such other business as may properly
come before the meeting and any adjournment thereof.
RECORD DATE........ Holders of record of Synovus common stock at the close of
business on February 11, 2000, are entitled to vote
at the meeting.
ANNUAL REPORT...... Synovus' 1999 Annual Report, which is not a part of
the proxy soliciting material, is enclosed.
PROXY VOTING....... It is important that your shares be represented and
voted at the meeting. You can vote your shares by
completing and returning the proxy card sent to you.
Most shareholders can also vote their shares over the
Internet or by telephone. If Internet or telephone
voting is available to you, voting instructions are
printed on the proxy card sent to you. You can
revoke a proxy at any time prior to its exercise at the
meeting by following the instructions in the
accompanying Proxy Statement.
/s/G. SANDERS GRIFFITH, III
G. SANDERS GRIFFITH, III
Secretary
Columbus, Georgia
March 16, 2000
YOUR VOTE IS IMPORTANT. WHETHER OR NOT YOU PLAN TO ATTEND THE ANNUAL
MEETING, PLEASE VOTE YOUR SHARES PROMPTLY.
TABLE OF CONTENTS
Voting Information.............................................................1
Election of Directors..........................................................3
Meetings and Committees of the Board...........................................6
Directors' Compensation........................................................7
Executive Officers.............................................................7
Stock Ownership of Directors and Executive Officers............................8
Directors' Proposal to Approve the Synovus Financial Corp.
2000 Long-Term Incentive Plan.............................................9
Executive Compensation........................................................15
Stock Performance Graph.......................................................18
Compensation Committee Report on Executive Compensation.......................19
Compensation Committee Interlocks and
Insider Participation....................................................21
Transactions With Management..................................................21
Principal Shareholders........................................................22
Relationships Between Synovus, Columbus Bank and
Certain of Synovus' Subsidiaries and Affiliates..........................24
Section 16(a) Beneficial Ownership Reporting Compliance.......................27
Independent Auditors..........................................................28
General Information:
Financial Information....................................................28
Shareholder Proposals for the 2001 Proxy Statement.......................28
Director Nominees or Other Business for Presentation
at the Annual Meeting...............................................28
Solicitation of Proxies..................................................29
VOTING INFORMATION
PURPOSE
This Proxy Statement and the accompanying proxy card are being mailed to
Synovus shareholders beginning March 16, 2000. The Synovus Board of Directors is
soliciting proxies to be used at the 2000 Annual Meeting of Synovus Shareholders
which will be held on April 20, 2000, at 10:00 a.m., in the South Hall of the
Columbus, Georgia Convention & Trade Center. Proxies are solicited to give all
shareholders of record an opportunity to vote on matters to be presented at the
Annual Meeting. In the following pages of this Proxy Statement, you will find
information on matters to be voted upon at the Annual Meeting of Shareholders or
any adjournment of that meeting.
WHO CAN VOTE
All shareholders of record of Synovus common stock as of the close of
business on February 11, 2000 are entitled to vote. Shares can be voted at the
meeting only if the shareholder is present or represented by a valid proxy.
SHARES OUTSTANDING
A majority of the votes entitled to be cast by the holders of the
outstanding shares of Synovus common stock must be present, either in person or
represented by proxy, in order to conduct the Annual Meeting of Synovus
Shareholders. On February 11, 2000, 252,246,801 shares of Synovus common stock
were outstanding.
PROXIES AND VOTING PROCEDURES
Your vote is important. Because many shareholders cannot attend the meeting
in person, it is necessary that a large number be represented by proxy. Most
shareholders have a choice of voting over the Internet, by using a toll-free
telephone number or by completing a proxy card and mailing it in the
postage-paid envelope provided. Please refer to your proxy card or the
information forwarded by your bank, broker or other holder of record to see
which options are available to you. Please be aware that if you vote over the
Internet, you may incur costs such as telephone and Internet access charges for
which you will be responsible. The Internet and telephone voting facilities for
shareholders of record will close at 11:59 p.m. E.T. on April 19, 2000.
You can revoke your proxy at any time before it is exercised by timely
delivery of a properly executed, later-dated proxy (including an Internet or
telephone vote) or by voting by ballot at the Annual Meeting. By providing
your voting instructions promptly, you may save Synovus the expense of a second
mailing.
The Internet and telephone voting procedures are designed to authenticate
shareholders by use of a control number and to allow you to confirm that your
instructions have been properly recorded.
The method by which you vote will in no way limit your right to vote at the
Annual Meeting if you later decide to attend in person. If your shares are held
in the name of a bank, broker or other holder of record, you must obtain a
proxy, executed in your favor, from the holder of record, to be able to vote
at the Annual Meeting.
All shares entitled to vote and represented by properly completed
proxies received prior to the Annual Meeting and not revoked will be voted at
the Annual Meeting in accordance with your instructions. IF YOU DO NOT
INDICATE HOW YOUR SHARES SHOULD BE VOTED ON A MATTER, THE SHARES REPRESENTED
BY YOUR PROPERLY COMPLETED PROXY WILL BE VOTED AS THE BOARD OF DIRECTORS
RECOMMENDS.
If any other matters are properly presented at the Annual Meeting for
consideration, including, among other things, consideration of a motion to
adjourn the meeting to another time or place, the persons named as proxies and
acting thereunder will have discretion to vote on those matters according to
their best judgment to the same extent as the person delivering the proxy would
be entitled to vote. At the date this Proxy Statement went to press, we did not
anticipate that any other matters would be raised at the Annual Meeting.
VOTES PER SHARE
Holders of Synovus common stock are entitled to ten votes on each matter
submitted to a vote of shareholders for each share of Synovus common stock owned
on February 11, 2000 which: (1) has had the same owner since February 11, 1996;
(2) was acquired by reason of participation in a dividend reinvestment plan
offered by Synovus and is held by the same owner who acquired it under such
plan; (3) is held by the same owner to whom it was issued as a result of an
acquisition of a company or business by Synovus where the resolutions adopted by
Synovus' Board of Directors approving the acquisition specifically grant ten
votes per share; (4) was acquired under any employee, officer and/or
director benefit plan maintained for one or more employees, officers and/or
directors of Synovus and/or its subsidiaries, and is held by the same owner for
whom it was acquired under any such plan; (5) is held by the same owner to whom
it was issued by Synovus, or to whom it was transferred by Synovus from treasury
shares, and the resolutions adopted by Synovus' Board of Directors approving
such issuance and/or transfer specifically grant ten votes per share; (6) was
acquired as a direct result of a stock split, stock dividend or other type of
share distribution if the share as to which it was distributed was acquired
prior to, and has been held by the same owner since, February 11, 1996; (7) has
been owned continuously by the same shareholder for a period of 48 consecutive
months prior to the record date of any meeting of shareholders at which the
share is eligible to be voted; or (8) is owned by a holder who, in addition to
shares which are owned under the provisions of (1)-(7) above, is the owner of
less than 1,139,063 shares of Synovus common stock (which amount has been
appropriately adjusted to reflect stock splits and with such amount to be
appropriately adjusted to properly reflect any other change in Synovus common
stock by means of a stock split, a stock dividend, a recapitalization or
otherwise). Shareholders of shares of Synovus common stock not described above
are entitled to one vote per share for each share. The actual voting power of
each holder of shares of Synovus common stock will be based on information
possessed by Synovus at the time of the Annual Meeting.
As Synovus common stock is registered with the Securities and Exchange
Commission and is traded on the New York Stock Exchange, Synovus common stock is
subject to the provisions of an NYSE rule which, in general, prohibits a
company's common stock and equity securities from being authorized or remaining
authorized for trading on the NYSE if the company issues securities or takes
other corporate action that would have the effect of nullifying, restricting or
disparately reducing the voting rights of existing shareholders of the company.
However, the rule contains a "grandfather" provision, under which Synovus' ten
vote provision falls, which, in general, permits grandfathered disparate voting
rights plans to continue to operate as adopted. The number of votes that each
shareholder will be entitled to exercise at the Annual Meeting will depend upon
whether each share held by the shareholder meets the requirements which entitle
one share of Synovus common stock to ten votes on each matter submitted to a
vote of shareholders. Shareholders of Synovus common stock must complete the
Certification on the proxy in order for any of the shares represented by the
proxy to be entitled to ten votes per share. All shares entitled to vote and
represented by properly completed proxies received before the polls are closed
at the Annual Meeting, and not revoked or superceded, will be voted in
accordance with instructions indicated on those proxies.
SHAREHOLDERS WHO DO NOT CERTIFY ON THEIR PROXY CARDS THAT THEY ARE ENTITLED TO
TEN VOTES PER SHARE WILL BE ENTITLED TO ONLY ONE VOTE PER SHARE.
SYNOVUS DIVIDEND REINVESTMENT AND DIRECT STOCK PURCHASE PLAN
If you participate in this Plan, your proxy card represents shares held in
the Plan, as well as shares you hold directly in certificate form registered in
the same name.
REQUIRED VOTE
The presence, in person or by proxy, of the holders of a majority of the
votes entitled to be cast generally for the election of directors is necessary
to constitute a quorum at the Annual Meeting. Abstentions and broker "nonvotes"
are counted as present and entitled to vote for purposes of determining a
quorum. A broker "nonvote" occurs when a nominee holding shares for a
beneficial owner does not vote on a particular proposal because the nominee does
not have discretionary voting power with respect to that item and has not
received instructions from the beneficial owner.
A plurality of the votes duly cast is required for the election of a
director (i.e., the nominee receiving the greatest number of votes will be
elected). Abstentions and broker nonvotes are not counted for purposes of the
election of a director. A properly completed proxy marked "withhold authority"
with respect to the election of one or more directors will not be voted with
respect to the director or directors indicated, although it will be counted for
purposes of determining whether there is a quorum. Cumulative voting is not
permitted. The affirmative vote of the holders of a majority of the votes cast
thereon is required to approve the Directors' proposal to approve the Synovus
2000 Long-Term Incentive Plan. Any shares not voted (whether by abstention,
broker nonvote or otherwise) have no impact on the vote.
COLUMBUS BANK AND TRUST COMPANY AND TOTAL SYSTEM SERVICES, INC.
Synovus is the owner of all of the issued and outstanding shares of
common stock of Columbus Bank and Trust Company(R)("Columbus Bank"). Columbus
Bank owns individually 80.8% of the outstanding shares of Total System Services,
Inc.(R) ("TSYS(R)"), a data processing company having 194,832,720 shares
of common stock outstanding on February 11, 2000.
ELECTION OF DIRECTORS
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE "FOR"
ALL NOMINEES.
NUMBER
At the date of this Proxy Statement, the Board of Directors of Synovus
consists of 16 members. As 20 board seats have been authorized by Synovus'
shareholders, Synovus has four directorships which remain vacant. These vacant
directorships could be filled in the future at the discretion of Synovus' Board
of Directors. This discretionary power gives Synovus' Board of Directors the
flexibility of appointing new directors in the periods between Synovus' Annual
Meetings should suitable candidates come to its attention. The Board is divided
into three classes whose terms are staggered so that the term of one class
expires at each Annual Meeting of Shareholders. The terms of office of the Class
I directors expire at the 2001 Annual Meeting, the terms of office of the Class
II directors expire at the 2002 Annual Meeting and the terms of office of the
Class III directors expire at the 2000 Annual Meeting. Three director nominees
have been nominated for election as Class III directors at this meeting. Proxies
cannot be voted at the 2000 Annual Meeting for a greater number of persons than
the number of nominees named.
NOMINEES
The following nominees have been selected by the Board for submission to
the shareholders: Richard Y. Bradley, John P. Illges, III and William B.
Turner, each to serve a three year term expiring at the Annual Meeting in the
year 2003.
The Board believes that each director nominee will be able to stand for
election. If any nominee becomes unable to stand for election, proxies in favor
of that nominee will be voted in favor of the remaining nominees and in favor of
any substitute nominee named by the Board. If you do not wish your shares voted
for one or more of the nominees, you may so indicate on the proxy.
BOARD OF DIRECTORS
Following is the principal occupation, age and certain other information
for each director nominee and other directors serving unexpired terms.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Synovus Year
Director First
Classifi- Elected Principal Occupation
Name Age cation Director and Other Information
- ------------------------- ----- -------- ---------- -------------------------------------
<S> <C> <C> <C> <C>
Richard E. Anthony<F1> 53 II 1993 Vice Chairman of the Board,
Synovus Financial Corp.; Chairman
of the Board, First Commercial Bank
of Birmingham (Banking Subsidiary
of Synovus)
Joe E. Beverly 58 II 1983 Chairman of the Board, Commercial
Bank, Thomasville, Georgia
(Banking Subsidiary of Synovus);
Director, Flowers Industries, Inc.
James H. Blanchard<F2> 58 I 1972 Chairman of the Board and Chief
Executive Officer, Synovus Financial
Corp.; Chairman of the Executive
Committee, Total System Services,
Inc.; Director, BellSouth Corporation
Richard Y. Bradley<F3> 61 III 1991 Partner, Bradley & Hatcher (Law
Firm); Director, Total System
Services, Inc.
Walter M. Deriso, Jr.<F4> 53 II 1997 Vice Chairman of the Board,
Synovus Financial Corp.; Chairman
of the Board, Security Bank and
Trust Company, Albany, Georgia
(Banking Subsidiary of Synovus)
C. Edward Floyd, M.D. 65 I 1995 Vascular Surgeon
Gardiner W. Garrard, Jr. 59 I 1972 President, The Jordan Company
(Real Estate Development); Director,
Total System Services, Inc.
V. Nathaniel Hansford<F5> 56 I 1985 President, North Georgia College
and State University
John P. Illges, III 65 III 1997 Senior Vice President and Financial
Consultant, The Robinson-Humphrey
Company, Inc. (Stockbroker);
Director, Total System Services, Inc.
Mason H. Lampton 52 II 1993 Chairman of the Board and President,
The Hardaway Company and Chairman of the
Board, Standard Concrete Products
(Construction Companies);
Director, Total System Services, Inc.
Elizabeth C. Ogie<F6> 49 II 1993 Director, W.C. Bradley Co. (Metal
Manufacturer and Real Estate)
H. Lynn Page 59 I 1978 Director, Synovus Financial
Corp., Columbus Bank and Trust
Company and Total System Services,
Inc.
Robert V. Royall 65 I 1995 Chairman of the Board, The National
Bank of South Carolina (Banking
Subsidiary of Synovus); Director, Blue
Cross Blue Shield of South Carolina
Melvin T. Stith 53 II 1998 Dean, College of Business, Florida
State University; Director, Rexall Sundown,
Inc., Correctional Services Corp. and Keebler
Foods Company
William B. Turner<F6><F7> 77 III 1972 Chairman of the Executive
Committee, Columbus Bank and
Trust Company and Synovus
Financial Corp.; Advisory Director, W.
C. Bradley Co. (Metal Manufacturer
and Real Estate); Director,
Total System Services, Inc.
James D. Yancey<F8> 58 I 1978 President and Chief Operating Officer, Synovus
Financial Corp.; Chairman of the Board,
Columbus Bank and Trust Company;
Director, Total System Services, Inc.
and Shoney's, Inc.
- -------------
<FN>
<F1> Richard E. Anthony was elected Vice Chairman of Synovus in September 1995.
Prior to 1995, Mr. Anthony served, and continues to serve, as President of
Synovus Financial Corp. of Alabama and Chairman of the Board of First
Commercial Bank of Birmingham, both of which companies are subsidiaries of
Synovus.
<F2> James H. Blanchard was elected Chairman of the Board of Synovus in April
1986. Prior to 1986, Mr. Blanchard served in various capacities with
Synovus, Columbus Bank and/or TSYS, including President of Synovus.
<F3> Richard Y. Bradley formed Bradley & Hatcher in September 1995. From 1991
until 1995, Mr. Bradley served as President of Bickerstaff Clay Products
Company, Inc.
<F4> Walter M. Deriso, Jr. was elected Vice Chairman of Synovus in January
1997. Prior to 1997, Mr. Deriso served as President of Security Bank and
Trust Company.
<F5> V. Nathaniel Hansford was elected President of North Georgia College and
State University in July 1999. Prior to 1999, Mr. Hansford served as
Professor and Dean Emeritus of the University of Alabama School of Law.
<F6> Elizabeth C. Ogie is William B. Turner's niece.
<F7> William B. Turner was elected Chairman of the Executive Committee of
Synovus in April 1986. Prior to 1986, Mr. Turner served in various
capacities with Synovus and/or Columbus Bank, including Chairman of the
Board of both Synovus and Columbus Bank.
<F8> James D. Yancey was elected President and Chief Operating Officer of
Synovus in April 1998. Prior to 1998, Mr. Yancey served in various
capacities with Synovus and/or Columbus Bank, including Vice Chairman of
the Board and President of both Synovus and Columbus Bank.
</FN>
</TABLE>
MEETINGS AND COMMITTEES OF THE BOARD
BOARD OF DIRECTORS
The business affairs of Synovus are managed under the direction of the
Board of Directors in accordance with the Georgia Business Corporation Code, as
implemented by Synovus' Articles of Incorporation and bylaws. Members of the
Board are kept informed through reports routinely presented at Board and
committee meetings by the Chief Executive Officer and other officers, and
through other means.
BOARD AND COMMITTEE MEETINGS
The Board of Directors held eight meetings in 1999. All directors attended
at least 82% of Board and committee meetings during 1999.
COMMITTEES OF THE BOARD
Synovus' Board of Directors has three principal standing committees -- an
Executive Committee, an Audit Committee and a Compensation Committee. There is
no Nominating Committee of Synovus' Board of Directors. The following table
shows the membership of the various committees.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Executive Audit Compensation
- ---------- ----- -------------
<S> <C> <C>
William B. Turner, Chair John P. Illges, III, Chair Gardiner W. Garrard, Jr., Chair
James H. Blanchard H. Lynn Page Mason H. Lampton
James D. Yancey Melvin T. Stith V. Nathaniel Hansford
Richard Y. Bradley
Gardiner W. Garrard, Jr.
John P. Illges, III
</TABLE>
- --------------------------------------------------------------------------------
Executive Committee. During the intervals between meetings of Synovus'
Board of Directors, Synovus' Executive Committee possesses and may exercise any
and all of the powers of Synovus' Board of Directors in the management and
direction of the business and affairs of Synovus with respect to which specific
direction has not been previously given by Synovus' Board of Directors. During
1999, Synovus' Executive Committee held four meetings.
Audit Committee. The primary functions to be engaged in by Synovus' Audit
Committee include: (i) annually recommending to Synovus' Board the independent
certified public accountants to be engaged by Synovus for the next fiscal year;
(ii) reviewing the plan and results of the annual audit by Synovus' independent
auditors; (iii) reviewing and approving the range of management advisory
services provided by Synovus' independent auditors; (iv) reviewing Synovus'
internal audit function and the adequacy of the internal accounting control
systems of Synovus; (v) reviewing the results of regulatory examinations of
Synovus; (vi) periodically reviewing the financial statements of Synovus; and
(vii) considering such other matters with regard to the internal and independent
audit of Synovus as, in its discretion, it deems to be necessary or desirable,
periodically reporting to Synovus' Board as to the exercise of its duties and
responsibilities and, where appropriate, recommending matters in connection with
the audit function with respect to which Synovus' Board should consider taking
action. During 1999, Synovus' Audit Committee held three meetings.
Compensation Committee. The primary functions to be engaged in by Synovus'
Compensation Committee include: (i) evaluating the remuneration of senior
management and board members of Synovus and its subsidiaries and the
compensation and fringe benefit plans in which officers, employees and directors
of Synovus are eligible to participate; and (ii) recommending to Synovus' Board
whether or not it should modify, alter, amend, terminate or approve such
remuneration, compensation or fringe benefit plans. During 1999, Synovus'
Compensation Committee held four meetings.
DIRECTORS' COMPENSATION
COMPENSATION
Synovus' directors receive a $20,000 annual retainer, and fees of $1,200
for each meeting of Synovus' Board of Directors and each Executive Committee
meeting they personally attend. Members of the Committees of Synovus' Board of
Directors (other than the Executive Committee) receive fees of $750, with the
Chairmen of such Committees receiving fees of $1,200, for each Committee meeting
they personally attend. In addition, directors of Synovus receive a $1,200 fee
for each board meeting from which their absence is excused and a $1,200 fee for
one meeting without regard to the reason for their absence.
DIRECTOR STOCK PURCHASE PLAN
Synovus' Director Stock Purchase Plan is a nontax-qualified, contributory
stock purchase plan pursuant to which qualifying Synovus directors can purchase,
with the assistance of contributions from Synovus, presently issued and
outstanding shares of Synovus common stock. Under the terms of the Director
Stock Purchase Plan, qualifying directors can elect to contribute up to $1,000
per calendar quarter to make purchases of Synovus common stock, and Synovus
contributes an additional amount equal to 50% of the directors' cash
contributions. Participants in the Director Stock Purchase Plan are fully vested
in, and may request the issuance to them of, all shares of Synovus common stock
purchased for their benefit under the Plan.
CONSULTING SERVICES
H. Lynn Page, a director and the former Vice Chairman of the Board of
Synovus, and Synovus are parties to a Consulting Agreement pursuant to which Mr.
Page was paid $24,000 by Synovus during 1999 for providing consulting and
advisory services to Synovus in connection with portfolio management and
potential opportunities for business expansion.
Joe E. Beverly, a director and the former Vice Chairman of the Board of
Synovus, and Synovus are parties to a Retirement Agreement pursuant to which Mr.
Beverly was paid $24,000 by Synovus during 1999 for providing consulting and
advisory services to Synovus relating to Synovus' affiliate banks.
EXECUTIVE OFFICERS
The following table sets forth the name, age and position with Synovus of
each executive officer of Synovus.
<TABLE>
<CAPTION>
Name Age Position with Synovus
- ----------------------- --- -------------------------------------------------
<S> <C> <C>
James H. Blanchard 58 Chairman of the Board and Chief Executive Officer
William B. Turner 77 Chairman of the Executive Committee
James D. Yancey 58 President and Chief Operating Officer
Richard E. Anthony 53 Vice Chairman of the Board
Walter M. Deriso, Jr. 53 Vice Chairman of the Board
G. Sanders Griffith, III 46 Senior Executive Vice President, General
Counsel and Secretary
Thomas J. Prescott 45 Executive Vice President and
Chief Financial Officer
Calvin Smyre 52 Executive Vice President, Corporate Affairs
Anne G. Dawahare 37 Chief Information Officer
Elizabeth R. James 38 Chief People Officer
</TABLE>
G. Sanders Griffith, III serves as Senior Executive Vice President, General
Counsel and Secretary of Synovus, positions he has held since October 1995. From
1988 until 1995, Mr. Griffith served in various capacities with Synovus,
including Executive Vice President, General Counsel and Secretary. Thomas J.
Prescott was elected Executive Vice President and Chief Financial Officer of
Synovus in December 1996. From 1987 until 1996, Mr. Prescott served in various
capacities with Synovus, including Executive Vice President and Treasurer.
Calvin Smyre was elected Executive Vice President of Synovus in November 1996.
From 1976 until 1996, Mr. Smyre served in various capacities with Columbus Bank
and/or Synovus, including Senior Vice President of Synovus. Anne G. Dawahare was
elected Chief Information Officer of Synovus in July, 1998. Ms. Dawahare
currently serves as President of Synovus Technologies, Inc., a position she has
held since February, 1998, and has served in various capacities with Synovus
since 1994. Elizabeth R. James was elected Chief People Officer of Synovus in
July, 1998. Ms. James currently serves as President of Synovus Service Corp., a
position she has held since June, 1996, and has served in various capacities
with Columbus Bank and/or TSYS since 1986.
STOCK OWNERSHIP OF DIRECTORS AND EXECUTIVE OFFICERS
The following table sets forth ownership of shares of Synovus common stock
by each director, by each executive officer named in the Summary Compensation
Table on page 15 and by all directors and executive officers as a group as of
December 31, 1999.
<TABLE>
<CAPTION>
Shares of Shares of
Synovus Shares of Synovus
Common Synovus Common Percentage of
Stock Common Stock Stock Total Shares Outstanding
Beneficially Beneficially Beneficially of Synovus Shares of
Owned with Owned with Owned with Common Synovus
Sole Voting Shared Voting Sole Voting Stock Common Stock
and Invest- and Invest- but no Invest- Beneficially Beneficially
ment Power ment Power ment Power Owned as of Owned as of
Name as of 12/31/99 as of 12/31/99 as of 12/31/99 12/31/99<F1> 12/31/99
- ---------------------- --------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Richard E. Anthony 390,864 199,694 11,282 968,932 *
Joe E. Beverly 426,893 4,100 14,316 585,739 *
James H. Blanchard 1,588,506 --- 233,678 2,909,288 1.0
Richard Y. Bradley 20,794 129,895 --- 150,689 *
Walter M. Deriso, Jr. 31,076 3,934 --- 182,751 *
C. Edward Floyd, M.D. 1,094,243 145,270 --- 1,239,513 *
Gardiner W. Garrard, Jr. 204,147 1,274,125 --- 1,478,272 *
G. Sanders Griffith, III 92,926 --- 10,844 405,993 *
V. Nathaniel Hansford 125,645 410,242 --- 535,887 *
John P. Illges, III 289,875 510,376<F2> --- 800,251 *
Mason H. Lampton 79,367 290,951<F3> --- 370,318 *
Elizabeth C. Ogie 68,551 30,495,786<F4><F5> --- 30,564,337 10.8
H. Lynn Page 815,886 12,047 --- 827,933 *
Robert V. Royall 274,179 168,947 --- 719,808 *
Melvin T. Stith 1,486 98 --- 1,584 *
William B. Turner 72,634 30,356,517<F5> --- 30,429,151 10.8
James D. Yancey 1,015,873 61,677 22,561 1,733,330 *
Directors and Executive
Officers as a Group
(21 persons) 6,678,626 33,726,959 292,681 43,841,062 15.4
* Less than one percent of the outstanding shares of Synovus common stock.
- ---------------------------
<FN>
<F1> The totals shown for the following directors and executive officers of
Synovus include the number of shares of Synovus common stock that each
individual has the right to acquire within 60 days through the exercise of
stock options:
Person Number of Shares
------ ----------------
Richard E. Anthony 367,092
Joe E. Beverly 140,430
James H. Blanchard 1,087,104
Walter M. Deriso, Jr. 147,741
G. Sanders Griffith, III 302,223
Robert V. Royall 276,682
James D. Yancey 633,219
In addition, the other executive officers of Synovus have rights to acquire
an aggregate of 273,986 shares of Synovus common stock within 60 days
through the exercise of stock options.
<F2> Includes 62,667 shares of Synovus common stock held by a charitable
foundation of which Mr. Illges is trustee.
<F3> Includes 264,687 shares of Synovus common stock held in a trust for which
Mr. Lampton is not the trustee. Mr. Lampton disclaims beneficial ownership
of such shares.
<F4> Includes 126,599 shares of Synovus common stock held by a charitable
foundation of which Mrs. Ogie is a trustee.
<F5> Includes 2,620,493 shares of Synovus common stock held by a charitable
foundation of which Mrs. Ogie and Mr. Turner are among the trustees, and
27,716,207 shares of Synovus common stock beneficially owned by TB&C
Bancshares, Inc., of which Mrs. Ogie and Mr. Turner are officers,
directors and shareholders.
</FN>
</TABLE>
For a detailed discussion of the beneficial ownership of TSYS common stock
by Synovus' named executive officers and directors and by all directors and
executive officers of Synovus as a group, see "TSYS Common Stock Ownership of
Directors and Management" on page 25.
DIRECTORS' PROPOSAL TO APPROVE THE SYNOVUS FINANCIAL CORP. 2000
LONG-TERM INCENTIVE PLAN
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE "FOR" THIS PROPOSAL.
Synovus' compensation program includes long-term performance awards under
the Synovus Financial Corp. 2000 Long-Term Incentive Plan (the "2000 Plan"). The
purpose of the 2000 Plan is to attract, retain, motivate and reward employees
who make a significant contribution to Synovus' long-term success, and to enable
such employees to acquire and maintain an equity interest in Synovus. Subject to
approval by Synovus' shareholders, compensation paid pursuant to the 2000 Plan
is intended, to the extent reasonable, to qualify for tax deductibility under
Section 162(m) of the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder, as may be amended from time to time
("Section 162(m)").
Eligibility and Participation. Any employee of Synovus, excluding members
of the Compensation Committee and any director who is not also an employee of
Synovus, is eligible to be selected to participate in the 2000 Plan.
Approximately 8,428 employees currently participate in the 2000 Plan. The
Committee, as described below, has discretion to select participants from among
eligible employees from year to year.
Shares Subject to the Plan. The aggregate number of shares of Synovus
common stock which may be granted to participants pursuant to awards granted
under the 2000 Plan may not exceed twenty million (20,000,000).
Awards Under the 2000 Plan. Pursuant to the 2000 Plan, Synovus may grant
long-term perform ance awards to participants in the form of stock options,
stock appreciation rights ("SARs"), restricted stock or performance awards.
Stock Options. The Committee may grant options under the 2000 Plan in the
form of qualified incentive stock options, nonqualified stock options or a
combination thereof. Options may be granted either alone or in tandem with other
awards granted under the 2000 Plan. Subject to the limits described herein, the
Committee shall have discretion in determining the number of shares subject to
options granted to each participant.
The option price of nonqualified stock options may be equal to, or more or
less than, one hundred percent (100%) of the fair market value of a share of
Synovus common stock on the date the option is granted. The option price of
qualified incentive stock options shall be at least equal to one hundred percent
(100%) of the fair market value of a share of Synovus common stock on the date
the option is granted. Options shall expire at such times as the Committee
determines at the time of grant; provided, however, that no option shall be
exercisable later than the tenth anniversary of its grant.
Options granted under the 2000 Plan shall be exercisable at such times and
subject to such restrictions and conditions as the Committee shall approve;
provided that no option may be exercisable prior to six months following its
grant. The option exercise price shall be payable in cash, by check or by such
other instrument as deemed acceptable by the Committee. Payment of the exercise
price and any withholding tax due at exercise may also be made through any
program approved by the Committee (including a broker-dealer cashless exercise
program).
Options may only be transferred under the laws of descent and distribution
and shall be exercisable only by the participant during his lifetime unless
otherwise specified by the Committee at or after grant. The participant's rights
in the event of termination of employment shall be specified by the Committee at
or after grant.
Subject to the terms of the 2000 Plan, the Committee may grant option price
adjustment rights in conjunction with all or part of any option granted under
the 2000 Plan, either at or after the time of grant of the option. Such
adjustment rights are exercisable only at the same time and to the same extent
as the corresponding option and shall terminate upon the termination or
exercise of such option. Upon exercise, the participant shall be entitled to
have applied as a credit against the exercise price of the related option an
amount equal to the total number of shares subject to the adjustment right (or a
portion thereof as designated by the participant) multiplied by a fixed
percentage of the fair market value of a share of Synovus common stock on a date
designated by the Committee.
Stock Appreciation Rights. SARs granted under the 2000 Plan may be granted
alone or in conjunction with all or part of any option granted under the 2000
Plan. Subject to the terms of the 2000 Plan, the Committee shall have discretion
to determine the terms and conditions of any SAR granted under the 2000 Plan.
With respect to an SAR granted in conjunction with an option, the grant price
shall be equal to the option price of the related option, and such SAR shall
terminate upon the termination or exercise of the related option. No SAR granted
under the 2000 Plan may be exercisable prior to six months following its grant,
except in the case of death (other than by suicide) or disability of the
participant. The term of any SAR shall be determined by the Committee, provided
that such term may not exceed ten years.
SARs granted alone may be exercised upon the terms and conditions as are
imposed by the Committee. An SAR granted in conjunction with an option may be
exercised only with respect to the shares of common stock of Synovus for which
the related option is exercisable. SARs granted in connection with an incentive
stock option shall expire no later than the expiration of such incentive stock
option; the value of the payout for such SARs may be no more than one hundred
percent (100%) of the difference between the incentive stock option option price
and the fair market value of the shares subject to such incentive stock option
at exercise and may be exercised only when the fair market value of the shares
subject to the incentive stock option exceeds the incentive stock option option
price.
Upon exercise, a participant will receive the difference between the fair
market value of a share of common stock on the date of exercise and the grant
price multiplied by the number of shares with respect to which the SAR is
exercised. Payment due upon exercise may be in cash, in shares having a fair
market value of the SAR being exercised, or in a combination of cash and shares,
as determined by the Committee. The Committee may impose such restrictions on
the exercise of SARs as may be required to satisfy the requirements of Section
16 of the Securities Exchange Act. SARs may only be transferred under the laws
of descent and distribution and shall be exercisable only by the participant
during his lifetime.
Restricted Stock. Restricted stock may be granted in such amounts and
subject to such terms and conditions as determined by the Committee. The
Committee shall impose such conditions and/or restrictions on any shares of
restricted stock as it deems advisable, including, but not limited to, a
graduated vesting schedule and/or conditioning the grant of restricted stock on
the attainment of performance goals. Each participant who is awarded restricted
stock shall be issued a stock certificate in respect of such restricted stock,
which shall be held in escrow by an escrow agent designated by the Committee, as
provided under the 2000 Plan.
During the six month period following the date of grant of restricted
stock, or such longer period as may be determined by the Committee, restricted
stock may not be sold, transferred, pledged or assigned. Except as limited by
the 2000 Plan, the Committee may provide for the lapse of such restrictions or
may accelerate or waive such restrictions based on performance or such other
factors as determined by the Committee.
Participants holding restricted stock shall have all of the rights of
stockholders of Synovus, including the right to dividends, unless the Committee
determines otherwise at the time of grant. Dividends or distributions credited
during the restriction period and paid in shares shall be subject to the same
restrictions as the shares of restricted stock with respect to which they were
paid. All rights with respect to restricted stock shall be available only during
a participant's lifetime, and each restricted stock award agreement shall
specify whether the participant has a right to receive unvested restricted
shares in the event of termination of employment.
Performance Awards. Shares of stock and/or a payment in cash may be awarded
under the 2000 Plan in the amounts and subject to the terms and conditions as
determined by the Committee. The Committee may set performance objectives which,
depending on the extent to which they are met, will determine the value of
performance awards that will be paid out to participants. Participants shall
receive payment of performance awards earned, in cash and/or shares of common
stock, if the specified performance objectives have been obtained. The Committee
may also establish a minimum level of performance below which no performance
award may be payable.
In the event a participant's employment is terminated by reason of death
(other than by suicide), disability or retirement during a performance period,
the participant shall receive a prorated payout of the performance award at the
time and in the amount determined by the Committee. In the event employment is
terminated for any other reason, the participant's rights to any performance
award shall be forfeited. performance awards may not be sold, transferred,
pledged, assigned or otherwise alienated or hypothecated, other than by will or
by the laws of descent and distribution. A participant's rights under the 2000
Plan shall be exercisable only by the participant during his lifetime.
Objective Performance Measures. Performance objectives applicable to awards
granted under the 2000 Plan, as determined by the Committee, shall be chosen
from among the following alternatives, unless and until the Committee proposes a
change in such measures for shareholder vote or applicable tax and/or securities
laws change to permit Committee discretion to alter such performance measures
without obtaining shareholder approval: (i) total shareholder return; (ii)
return on equity; (iii) earnings per share growth; and (iv) return on assets.
Maximum Amount Payable to Any Participant. The maximum number of shares
which may be awarded in any calendar year to any one participant is two million
(2,000,000). The maximum cash amount which may be awarded in any calendar year
to any participant is $1 million.
Adjustments in Connection With Certain Events. The 2000 Plan provides that
the Committee shall make a substitution or adjustment in the number of shares
reserved for issuance under the 2000 Plan in the number and option price of
shares subject to outstanding options and in the number of shares subject to
SARs, restricted stock or performance awards, as it deems appropriate and
equitable in connection with a change in corporate structure affecting Synovus'
stock.
Duration of the 2000 Plan. The 2000 Plan shall remain in effect from the
date it is adopted by Synovus' Board until the date terminated by the Committee
or Synovus' Board of Directors; provided, however, that no award shall be
granted on or after the tenth anniversary of the 2000 Plan's effective date;
provided further, however, that no future awards will be granted to Synovus'
"covered employees," as defined below, unless shareholder approval of the 2000
Plan is obtained.
Administration. The 2000 Plan will be administered by a committee of the
Board of Directors of Synovus (the "Committee") which will be comprised of no
fewer than two members who must be "outside directors" within the meaning of
Section 162(m). At least two of the Committee's members must be directors of
both Synovus and TSYS. Initially, the administering committee shall be the
Compensation Committee of Synovus' Board.
The Committee shall have authority to: (i) determine individuals to whom
awards will be granted; (ii) determine the terms and conditions upon which
awards shall be granted, including any restriction based on performance or other
factors; (iii) determine whether and to what extent awards shall be deferred;
and (iv) make all other determinations, perform all other acts, exercise all
other powers, and establish any other procedures it deems necessary, appropriate
or advisable in administering the 2000 Plan and maintaining compliance with
applicable law.
Amendment of the 2000 Plan. Synovus' Board of Directors may amend, alter or
discontinue the 2000 Plan at any time except that no such amendment, suspension
or discontinuation of the 2000 Plan may affect an existing award under the 2000
Plan without the affected participant's consent. In addition, no amendment,
alteration or discontinuation shall be made, without the approval of
shareholders, which would: (i) increase the total number of shares reserved
under the 2000 Plan; (ii) decrease the option price of any option to less than
one hundred percent (100%) of the fair market value of a share on the date of
grant; (iii) change the participants or class of participants eligible to
participate in the 2000 Plan; or (iv) materially increase the benefits accruing
to participants. The 2000 Plan, which was originally named the Synovus Financial
Corp. 1996 Long-Term Incentive Plan, was adopted by Synovus' Board of Directors
in 1996. On February 1, 2000, Synovus' Board of Directors amended the 1996 Plan
to add additional authorized shares and to rename it the 2000 Plan.
Change in Control. In the event of a change in control of Synovus, as
defined in the 2000 Plan, the vesting of any outstanding awards granted under
the 2000 Plan shall be accelerated and all such awards shall be fully
exercisable.
Federal Income Tax Consequences of the 2000 Plan. The income tax
consequences under current federal tax law to participants and to Synovus and
its subsidiaries of incentive compensation awarded under the 2000 Plan is
generally as described below. Local and state tax authorities, however, may also
tax incentive compensation awarded under the 2000 Plan.
Consequences to Participants. Generally, for federal income tax purposes, a
participant will realize ordinary income and will incur tax liability upon
receipt of the payment of an award under the 2000 Plan in an amount equal to
such payment, if in cash, or the fair market value of any unrestricted shares of
stock received. The tax consequences to participants of the individual types of
awards which may be granted under the 2000 Plan are described below.
Qualified Incentive Stock Options. With respect to options which qualify as
incentive stock options, a participant will not recognize ordinary income
for federal income tax purposes at the time options are granted or
exercised. If the participant disposes of shares acquired by exercise of an
incentive stock option before the expiration of two years from the date the
options are granted, or within one year after the issuance of shares upon
exercise of the incentive stock option, the participant will recognize in
the year of disposition: (a) ordinary income, to the extent that the lesser
of either (1) the fair market value of the shares on the date of option
exercise or (2) the amount realized on disposition exceeds the option
price; and (b) capital gain (or loss), to the extent that the amount
realized on disposition differs from the fair market value of the shares on
the date of option exercise. If the shares are sold after expiration of
these holding periods, the participant will realize capital gain or loss
(assuming the shares are held as capital assets) equal to the difference
between the amount realized on disposition and the option price.
Nonqualified Stock Options. With respect to options which do not qualify as
incentive stock options, the participant will recognize no income upon
grant of the option and, upon exercise, will recognize ordinary income to
the extent of the difference between the amount paid by the participant for
the shares and the fair market value of the shares on the date of option
exercise. Upon a subsequent disposition of the shares received under the
option, the participant will recognize capital gain or loss, as the case
may be, to the extent of the difference between the fair market value of
the shares at the time of exercise and the amount realized on the
disposition (assuming the shares are held as capital assets).
Stock Appreciation Rights. Ordinary income will be recognized by a
participant upon the exercise of an SAR, in an amount equal to the cash
received or the fair market value of the shares received on the exercise
date.
Restricted Stock. Participants holding restricted stock will recognize
ordinary income in the year in which the restrictions lapse, in the amount
of the fair market value of the shares as of the date of lapse of the
restrictions, unless the participant elects to include the fair market
value of the shares as of the date of grant in ordinary income at that
time.
Performance Awards. Ordinary income will be recognized by a participant in
the year in which it is received in an amount equal to the amount of the
performance award on the date of receipt.
Consequences to Synovus and Its Subsidiaries. In general, Synovus will
receive an income tax deduction at the same time and in the same amount as the
amount which is taxable to the employee as compensation, except as provided
below. To the extent a participant realizes capital gains, as described above,
Synovus and its subsidiaries will not be entitled to any deduction for federal
income tax purposes.
Under Section 162(m), compensation paid by a public company in excess of $1
million for any taxable year to "covered employees" generally is not deductible
by the company or its affiliates for federal income tax purposes unless it is
related to the performance of the company, is paid pursuant to a plan approved
by shareholders of the company and meets certain other requirements.
Generally, "covered employees" is defined under Section 162(m) as any
individual who is the chief executive officer or is among the four other highest
paid executive officers named in the summary compensation table in the company's
proxy statement, other than the chief executive officer, as of the last day of
the taxable year. It is anticipated that future awards will qualify as
performance based for purposes of Section 162(m), except for options subject to
adjustment rights and restricted stock not subject to preestablished performance
goals. Synovus does not presently anticipate making any such awards. However,
Synovus reserves the ability to make awards which do not qualify for full
deductibility under Section 162(m) if the Committee determines that the benefits
of so doing outweigh full deductibility.
NEW PLAN BENEFITS
The following table shows all grants of options of Synovus common stock
under the 2000 Plan for fiscal year 1999:
Name and Number of Shares Subject
Principal Position to Options Granted (1)
- -------------------- --------------------
James H. Blanchard
Chairman of the
Board and Chief
Executive Officer 170,901
James D. Yancey
President and Chief
Operating Officer 106,537
Richard E. Anthony
Vice Chairman of the
Board 59,822
G. Sanders Griffith, III
Senior Executive Vice
President, General
Counsel and Secretary 50,275
Walter M. Deriso, Jr.
Vice Chairman of the
Board 47,888
Executive Group 518,779
Nonexecutive Director
and Nominee Group(2) -0-
Nonexecutive Officer
Employee Group 2,648,643
(1)Every eligible employee, including each person named above, received 150
options with an exercise price equal to the fair market value of Synovus common
stock on July 20, 1999, which was $19.19 per share. These options, entitled
"Shared Interest," become exercisable upon the earlier of (a) July 20, 2002 or
(b) the date the fair market value of Synovus common stock reaches $38.75
(double the exercise price, as adjusted) and expire on July 19, 2007. The
remaining options listed above have an exercise price equal to the fair market
value of Synovus common stock on February 9, 1999, which was $22.88 per share.
These options become exercisable on February 9, 2001 and expire on February 8,
2009. The actual value an optionee may realize will depend on the excess of the
fair market value of the stock less the exercise price on the date the option is
exercised. The per share fair market value of Synovus stock as of February 16,
2000 was $17.50.
(2)There are no non-executive directors or nominee directors (or their
associates) who received such options nor any other person who is to receive 5%
of such options.
EXECUTIVE COMPENSATION
SUMMARY COMPENSATION TABLE
The following table summarizes the cash and noncash compensation for each
of the last three fiscal years for the chief executive officer of Synovus and
for the other four most highly compensated executive officers of Synovus.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUMMARY COMPENSATION TABLE
Long-Term
Annual Compensation Compensation Awards
-------------------------------------------------------- --------------------------------
Other Restricted Securities All
Annual Stock Underlying Other
Name and Compen- Award(s) Options/ Compen-
Principal Position Year Salary Bonus sation<F1> <F2> SARs sation<F3>
- --------------------- -------- ------------- ------------ ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
James H. Blanchard 1999 $656,000 $492,000 $1,500 -0- 670,901 $302,977
Chairman of the 1998 635,250 476,438 -0- -0- 211,929 306,378
Board and Chief 1997 616,125 462,094 -0- -0- 615,113 298,654
Executive Officer
James D. Yancey 1999 490,000 318,500 2,000 -0- 106,537 244,078
President and Chief 1998 475,000 464,750 2,000 -0- 132,126 271,639
Operating Officer 1997 445,000 442,000 2,000 -0- 524,633 235,573
Richard E. Anthony 1999 358,000 214,500 -0- -0- 59,822 137,958
Vice Chairman of the 1998 335,000 306,000 2,000 -0- 69,270 157,071
Board 1997 310,000 282,000 2,000 -0- 78,368 109,977
G. Sanders Griffith, III 1999 300,500 180,300 -0- -0- 50,275 82,951
Senior Executive Vice 1998 283,750 258,450 -0- -0- 59,226 94,336
President, General 1997 268,000 242,850 -0- -0- 254,480 81,279
Counsel and Secretary
Walter M. Deriso, Jr. 1999 295,000 177,000 -0- -0- 47,888 99,767
Vice Chairman 1998 260,000 156,000 -0- -0- 51,990 106,569
of the Board 1997 225,000 135,000 -0- -0- 58,776 74,794
<FN>
- ---------------------
<F1> Amount for 1999 includes matching contributions under the Director Stock
Purchase Plan of $1,500 for Mr. Blanchard and $2,000 for Mr. Yancey.
Perquisites and other personal benefits are excluded because the aggregate
amount does not exceed the lesser of $50,000 or 10% of annual salary and
bonus for the named executives.
<F2> As of December 31, 1999, Messrs. Blanchard, Yancey, Anthony and Griffith
held 26,567, 22,563, 11,282, and 10,849 restricted shares, respectively,
with a value of $528,019, $448,440, $224,230 and $215,624, respectively.
<F3> The 1999 amount includes director fees of $54,900, $56,600, $20,600 and
$20,600 for Messrs. Blanchard, Yancey, Anthony and Deriso, respectively, in
connection with their service as directors of Synovus and certain of its
subsidiaries; contributions or other allocations to defined contribution
plans of $27,968 for each executive; allocations pursuant to defined
contribution excess benefit agreements of $169,982, $111,621, $69,658,
$54,319 and $50,867 for each of Messrs. Blanchard, Yancey, Anthony,
Griffith and Deriso, respectively; premiums paid for group term life
insurance coverage of $978, $1,000, $729, $613 and $602 for each of Messrs.
Blanchard, Yancey, Anthony, Griffith and Deriso, respectively; the
economic benefit of life insurance coverage related to split-dollar life
insurance policies of $1,914, $1,318, $1,613 and $51 for each of Messrs.
Blanchard, Yancey, Anthony and Griffith, respectively; and the dollar
value of the benefit of premiums paid for split-dollar life insurance
policies (unrelated to term life insurance coverage) projected on an
actuarial basis of $47,235, $45,539 and $17,390 for each of Messrs.
Blanchard, Yancey and Anthony, respectively.
</FN>
</TABLE>
STOCK OPTION EXERCISES AND GRANTS
The following tables provide certain information regarding stock options
granted and exercised in the last fiscal year and the number and value of
unexercised options at the end of the fiscal year.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPTIONS/SAR GRANTS IN LAST FISCAL YEAR
Individual Grants
- --------------------------------------------------------------------------------
% of Total Potential
Options/ Realized Value at
SARs Exercise Assumed Annual Rates of
Options/ Granted to or Stock Price Appreciation
SARs Employees Base For Option Term<F1>
Granted in Fiscal Price Expiration ---------------------
Name (#) Year ($/Share) Date 5%($) 10% ($)
- ------------------------------ ------------ -------------- -------------- --------------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
James H. Blanchard 170,751<F2> 4.0973% $22.88 02/08/09 $1,865,455 $ 4,465,992
150<F3> 0.0036 19.19 07/19/07 1,374 3,291
500,000<F4> 11.9978 19.06 9/12/09 4,550,000 10,900,000
James D. Yancey 106,387<F2> 2.5528 22.88 02/08/09 1,162,278 2,782,552
150<F3> 0.0036 19.19 07/19/07 1,374 3,291
Richard E. Anthony 59,672<F2> 1.4319 22.88 02/08/09 651,917 1,560,721
150<F3> 0.0036 19.19 07/19/07 1,374 3,291
G. Sanders Griffith, III 50,125<F2> 1.2028 22.88 02/08/09 547,616 1,311,019
150<F3> 0.0036 19.19 07/19/07 1,374 3,291
Walter M. Deriso 47,738<F2> 1.1455 22.88 02/08/09 521,538 1,248,587
150<F3> 0.0036 19.19 07/19/07 1,374 3,291
- -----------
<FN>
<F1> The dollar gains under these columns result from calculations using the
identified growth rates and are not intended to forecast future price
appreciation of Synovus common stock.
<F2> Options granted on February 9, 1999 at fair market value. Options become
exercisable on February 9, 2001 and are transferable to family members.
<F3> Options granted on July 20, 1999 at fair market value. Options become
exercisable upon the earlier of: (a) July 20, 2002; or (b) the date the per
share fair market value of Synovus common stock equals or exceeds $38.38.
<F4> Options granted on September 13, 1999 at fair market value. Options become
exercisable in equal installments when the per share fair market value of
Synovus common stock meets or exceeds $40, $45 and $50, and in any event
on September 12, 2006. Options are tranferable to family members.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGREGATED OPTION/SAR EXERCISES IN LAST FISCAL YEAR AND FY-END
OPTION/SAR VALUES
Number of Securities Value of
Underlying Unexercised Unexercised In-the-Money
Shares Value Options/SARs at FY-End (#) Options/SARs at FY-End ($)<F1>
Acquired on Realized -------------------------- -------------------------------
Name Exercise (#) ($)<F1> Exercisable/Unexercisable Exercisable/Unexercisable
- ------------------------ ------------ --------- --------------------------- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
James H. Blanchard -0- $ -0- 875,325 / 1,182,830 $7,414,356/ $2,020,103
James D. Yancey -0- -0- 501,243 / 538,663 4,014,189/ 1,612,603
Richard E. Anthony -0- -0- 297,972 / 129,092 3,056,739/ 103
G. Sanders Griffith, III 10,125 210,380 243,147 / 259,501 2,014,097/ 806,353
Walter M. Deriso -0- -0- 95,901 / 99,878 576,312/ 103
- ----------
<FN>
<F1> Market value of underlying securities at exercise or year-end, minus the
exercise or base price.
</FN>
</TABLE>
EMPLOYMENT CONTRACTS AND CHANGE IN CONTROL ARRANGEMENTS
Employment Agreement with Mr. Blanchard. Synovus amended its Employment
Agreement with Mr. Blanchard, Chairman of the Board of Directors and Chief
Executive Officer of Synovus, effective September 13, 1999. Under the amended
Employment Agreement, Mr. Blanchard agreed to serve as Chairman and CEO of
Synovus for five years, and to remain employed by Synovus for seven years.
Synovus also agreed to make a "performance grant" of stock options to Mr.
Blanchard as discussed in the "Compensation Committee Report on Executive
Compensation" on page 19. During 1999, Synovus paid Mr. Blanchard a base
salary of $656,000 under this Employment Agreement. The Employment Agreement
with Mr. Blanchard also provides that Mr. Blanchard will receive deferred
compensation totaling $468,000 over a 10 to 15 year period following his death,
disability or other termination of employment. This deferred compensation may be
forfeited in the event Synovus terminates his employment for cause, he violates
a 2-year Covenant Not to Compete, or in the event of his death by suicide.
Employment Agreement with Mr. Yancey. Synovus has entered into an
Employment Agreement with Mr. Yancey, President and Chief Operating Officer of
of Synovus. Under this Agreement, Mr. Yancey receives a base salary that is
determined on an annual basis by the Synovus Compensation Committee. During
1999, Synovus paid Mr. Yancey a base salary of $490,000 under this
Employment Agreement. The Employment Agreement with Mr. Yancey also provides
that Mr. Yancey will receive deferred compensation totaling $375,000 over a 10
to 15 year period following his death, disability or other termination of
employment. This deferred compensation may be forfeited in the event Synovus
terminates his employment for cause, he violates a 2-year Covenant Not to
Compete, or in the event of his death by suicide. Mr. Yancey's Employment
Agreement automatically renews every year and may be terminated upon 30 days
prior written notice.
Long-Term Incentive Plans. Under the terms of Synovus' 1992, 1994 and 2000
Long-Term Incentive Plans, all awards become automatically vested in the event
of a change of control. Awards under the Plans may include stock options,
restricted stock, stock appreciation and performance awards. Messrs. Blanchard,
Yancey, Anthony, Griffith and Deriso each have restricted stock and stock
options under the Long-Term Incentive Plans.
Change of Control Agreements. Synovus has entered into Change of Control
Agreements with Messrs. Blanchard, Yancey, Anthony, Griffith and Deriso, and
certain other executive officers. In the event of a Change of Control, as
defined below, an executive would receive the following:
* Three times the executive's current base salary and bonus (bonus is
defined as the average bonus over the past three years measured as a
percentage multiplied by the executive's current base salary).
* Three years of medical, life, disability and other welfare benefits.
* A pro rata bonus through the date of termination for the separation
year.
* A cash amount in lieu of a long-term incentive award for the year of
separation equal to 1.5 times the normal market grant, if the
executive received a long-term incentive award in the year of
separation, or 2.5 times the market grant if not.
In order to receive these benefits, an executive must be actually or
constructively terminated within one year following a Change of Control or the
executive may voluntarily or involuntarily terminate employment during the
thirteenth month following a Change of Control. A Change of Control under these
agreements is defined as (1) the acquisition of 20% or more of the "beneficial
ownership" of Synovus' outstanding voting stock, with certain exceptions for
Turner family members, (2) the persons serving as directors of Synovus as of
January 1, 1996, and their replacements or additions, ceasing to comprise at
least two-thirds of the Board members, (3) a merger, consolidation,
reorganization or sale of Synovus' assets unless the prior owners of Synovus own
more than two-thirds of the new company, no person owns more than 20% of the new
company, and two-thirds of the company's new Board members are prior Board
members of Synovus, or (4) a triggering event occurs as defined in the Synovus
Rights Agreement. In the event an executive is impacted by the Internal Revenue
Service excise tax that applies to certain Change of Control arrangements, the
executive would receive additional payments so that he or she would be in the
same position as if the excise tax did not apply. The Change of Control
agreements do not provide for any retirement benefits or perquisites.
STOCK PERFORMANCE GRAPH
The following graph compares the yearly percentage change in cumulative
shareholder return on Synovus common stock with the cumulative total return of
the Standard & Poor's 500 Index and the Keefe, Bruyette & Woods 50 Bank Index
for the last five fiscal years (assuming a $100 investment on December 31, 1994
and reinvestment of all dividends).
[Omitted Stock Performance Graph is represented by the following table.]
COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN
SYNOVUS FINANCIAL CORP., S&P 500 AND KBW 50 BANK INDEX
1994 1995 1996 1997 1998 1999
---- ---- ---- ----- ----- -----
Synovus $100 $161 $277 $429 $478 $403
S&P 500 $100 $138 $169 $226 $290 $351
KBW 50 $100 $160 $227 $331 $359 $346
COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION
The Compensation Committee ("Committee") of Synovus is responsible for
evaluating the compensation of senior management of Synovus and its subsidiaries
and Synovus Board members, as well as the compensation and other benefit plans
in which officers, employees and directors of Synovus and its subsidiaries
participate. The Committee has designed its compensation program to attract and
retain highly motivated and well-trained executives in order to create superior
shareholder value for Synovus shareholders.
Elements of Executive Compensation. The four elements of executive
compensation at Synovus are:
* Base Salary
* Annual Bonus
* Long-Term Incentives
* Other Benefits
The Committee believes that a substantial portion (though not a majority)
of an executive's compensation should be at risk based upon performance, both in
the short-term (through the annual bonus and the Synovus/TSYS Profit Sharing
Plan and the Synovus/TSYS 401(k) Savings Plan) and long-term (through long-term
incentives such as stock options and restricted stock awards). The remainder of
each executive's compensation is primarily based upon the competitive practices
of a select group of approximately 18 banks that had similar "market value
added" as Synovus during the previous ten years ("similar companies"). "Market
value added," as used by the Committee for this purpose, means the stock price
increase during the ten-year period, plus dividends, less increases to paid-in
capital. This subtraction eliminates any value added through acquisitions. The
Committee believes that this approach accurately reflects the true competitors
of Synovus and is the most appropriate market data to use for determining the
compensation of Synovus executives. The companies used for comparison under this
approach are not the same companies included in the peer group index appearing
in the Stock Performance Graph on page 18. Each element of executive
compensation is discussed in detail below.
Base Salary. Base salary is an executive's annual rate of pay without
regard to any other elements of compensation. The primary consideration used by
the Committee to determine an executive's base salary is a market comparison of
similar positions at similar companies based upon the executive's level of
responsibility and experience. Base salaries are targeted in the median level of
similar companies. In addition to market comparisons, individual performance is
also considered in determining an executive's base salary, although it does not
weigh heavily. Based solely upon market comparisons, the Committee increased Mr.
Blanchard's base salary in 1999. The Committee also increased the base salaries
of Synovus' other executive officers in 1999 based solely upon market
comparisons.
Annual Bonus. The Committee awards annual bonuses under two different
plans, the Synovus Executive Bonus Plan (which was approved by Synovus
shareholders) and the Synovus Incentive Bonus Plan. The Committee selects the
participants in each Plan from year to year. For 1999, the Committee selected
Mr. Blanchard to participate in the Executive Bonus Plan while Messrs. Yancey,
Anthony, Griffith and Deriso were selected to participate in the Incentive Bonus
Plan. Under the terms of the Plans, bonus amounts are paid as a percentage of
base pay based on the achievement of performance goals that are established each
year by the Committee. The performance goals may be chosen by the Committee from
among the following measurements:
* Return on assets;
* Net income;
* Operating income;
* Non-performing assets and/or loans as a percentage of total assets
and/or loans;
* Return on capital compared to cost of capital;
* Earnings per share and/or earnings per share growth;
* Return on equity;
* Non-interest expense as a percentage of total expense;
* Loan charge-offs as a percentage of loans;
* Productivity and expense control;
* Number of cardholder, merchant and/or other customer accounts
processed and/or converted by TSYS;
* Successful negotiation or renewal of contracts with new and/or
existing customers by TSYS;
* Stock price; and
* Asset growth.
The Committee established a payout matrix based on attainment of net income
goals during 1999 for Mr. Blanchard and Synovus' other executive officers. The
maximum percentage payouts under the Plans for 1999 were 75% for Mr. Blanchard,
65% for Mr. Yancey and 60% for Messrs. Anthony, Griffith and Deriso. Synovus'
financial performance and each executive's individual performance can reduce the
bonus awards determined by the attainment of the goals, although this was not
the case for any of Synovus' executive officers. Because the maximum net income
target for 1999 under the Plans was exceeded and the overall financial results
of Synovus were favorable, Mr. Blanchard and Synovus' other executive officers
were awarded the maximum bonus amount for which each executive was eligible
under the Plans' payout matrix.
Long-Term Incentives. The Committee has awarded both stock options and
restricted stock awards to executives. Restricted stock awards are designed to
focus executives on the long-term performance of Synovus. Stock options provide
executives with the opportunity to buy and maintain an equity interest in
Synovus and to share in its capital appreciation. Executives are encouraged to
hold the shares received upon the lapse of restrictions on restricted stock
awards and upon the exercise of stock options, linking their interests to those
of Synovus' shareholders. The Committee has established a payout matrix for
long-term grants that uses total shareholder return measured by Synovus'
performance (stock price increases plus dividends) and how Synovus' total
shareholder return compares to the return of the peer group of companies
appearing in the Stock Performance Graph on page 18. For the long-term incentive
awards made in 1999, total shareholder return and peer comparisons were measured
during the 1996 to 1998 performance period. Under the payout matrix, the
Committee awarded Messrs. Blanchard, Yancey, Anthony, Griffith and Deriso stock
options of 170,901, 106,537, 59,822, 50,275, and 47,888, respectively. In
addition, in connection with the amendment to Mr. Blanchard's Employment
Agreement, the Committee made a "performance grant" of 500,000 stock options to
Mr. Blanchard on September 13, 1999. The options are exercisable in equal
installments when the market price of Synovus common stock exceeds $40, $45 and
$50 per share and in any event on September 12, 2006. The Committee strongly
believes that this "performance grant," which is designed to reward Mr.
Blanchard for significant growth in shareholder value, is in the best interests
of shareholders. The Committee intends to make similar awards in the future.
Benefits. Executives receive other benefits that serve a different purpose
than the elements of compensation discussed above. In general, these benefits
either provide retirement income or protection against catastrophic events such
as illness, disability and death. Executives generally receive the same benefits
offered to the employee population, with the only exceptions designed to promote
tax efficiency or to replace other benefits lost due to regulatory limits. The
Synovus/TSYS Profit Sharing Plan and the Synovus/TSYS 401(k) Savings Plan,
including an excess benefit plan which replaces benefits lost due to regulatory
limits (collectively the "Plan"), is the largest component of Synovus' benefits
package for executives. The Plan is directly related to the performance of
Synovus because the contributions to the Plan, up to a maximum of 14% of an
executive's compensation, depends upon Synovus' profitability. For 1999, Mr.
Blanchard and Synovus' other executive officers received a Plan contribution of
10.48% of their compensation, based upon the Plan's profitability formula. The
remaining benefits provided to executives are primarily based upon the
competitive practices of similar companies.
The Internal Revenue Code limits the deductibility for federal income tax
purposes of annual compensation paid by a publicly held corporation to its chief
executive officer and four other highest paid executives for amounts in excess
of $1 million, unless certain conditions are met. Because the Committee seeks to
maximize shareholder value, the Committee has taken steps to ensure that any
compensation paid to its executives in excess of $1 million is deductible. For
1999, Messrs. Blanchard and Yancey would have been affected by this provision,
but for the steps taken by the Committee. The Committee reserves the ability to
make awards which do not qualify for full deductibility under the Internal
Revenue Code, however, if the Committee determines that the benefits of doing so
outweigh full deductibility.
The Committee believes that its executive compensation program serves the
best interests of the shareholders of Synovus. As described above, a substantial
portion of the compensation of Synovus' executives is directly related to
Synovus' performance. The Committee believes that the performance of Synovus to
date validates its compensation philosophy.
Mason H. Lampton
V. Nathaniel Hansford
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
Mason H. Lampton and V. Nathaniel Hansford served as members of Synovus'
Compensation Committee during 1999. No member of the Committee is a current or
former officer of Synovus or its subsidiaries.
TRANSACTIONS WITH MANAGEMENT
During 1999, the subsidiary banks of Synovus had outstanding loans directly
to or indirectly accruing to the benefit of certain of the then directors and
executive officers of Synovus, and their related interests. These loans were
made in the ordinary course of business and were made on substantially the same
terms, including interest rates and collateral, as those prevailing at the time
for comparable transactions with others. In the opinion of Synovus' management,
such loans do not involve more than normal risks of collectibility or present
other unfavorable features. In the future, the subsidiary banks of Synovus
expect to have banking transactions in the ordinary course of business with
Synovus' directors, executive officers and their related interests.
During 1999, Synovus and its subsidiaries, including Columbus Bank, paid to
W.C. Bradley Co. an aggregate of $3,462, for printing services and marketing
materials provided by W.C. Bradley Co. These payments were made in the ordinary
course of business on substantially the same terms as those prevailing at the
time for comparable transactions with unrelated third parties. Synovus' wholly
owned subsidiary, Synovus Service Corp., and TSYS leased various properties in
Columbus, Georgia from W.C. Bradley Co. during 1999 for office space and
storage. The rent paid for the space by Synovus Service Corp., which is
approximately 35,400 square feet, was approximately $90,729. The rent paid for
the space by TSYS, which is approximately 71,915 square feet, was approximately
$227,418. The lease agreements were made on substantially the same terms as
those prevailing at the time for comparable leases for similar facilities with
an unrelated third party in Columbus, Georgia.
Columbus Bank and W.C.B. Air L.L.C. are parties to a Joint Ownership
Agreement pursuant to which they jointly own or lease aircraft. W. C. Bradley
Co. owns all of the limited liability company interests of W.C.B. Air. Columbus
Bank and W.C.B. Air have each agreed to pay fixed fees for each hour they fly
the aircraft owned and/or leased pursuant to the Joint Ownership Agreement.
Columbus Bank paid an aggregate sum of $2,371,939 for use of the aircraft during
1999 pursuant to the terms of the Joint Ownership Agreement. This amount
represents the charges incurred by Columbus Bank and its affiliated corporations
for use of the aircraft, and includes $881,970 for TSYS' use of the aircraft,
for which Columbus Bank was reimbursed by TSYS.
TB&C Bancshares, Inc. is a principal shareholder of Synovus. TB&C
Bancshares is a "family bank holding company" organized by William B. Turner,
and his sisters, Sarah T. Butler and Elizabeth T. Corn. TB&C Bancshares is a
party to a lease agreement pursuant to which it leases voting and certain other
rights in a total of 13,311,843 shares of Synovus common stock held in trust by
Synovus Trust Company, a subsidiary of Columbus Bank, as Trustee of three trusts
for the benefit of Mr. Turner, Mrs. Butler and Mrs. Corn and their respective
descendants. During 1999, TB&C Bancshares paid Synovus Trust Company, as
Trustee, $523,008 pursuant to the terms of the lease agreement, which amount
represents the fair market value of the voting rights as determined by an
independent appraiser. William B. Turner, Chairman of the Executive Committee of
Synovus and Columbus Bank and a director of TSYS, is an advisory director and
shareholder of W.C. Bradley Co. and is an officer, director and shareholder of
TB&C Bancshares. James H. Blanchard, Chairman of the Board of Synovus, Chairman
of the Executive Committee of TSYS and a director of Columbus Bank, is a
director of W.C. Bradley Co. Elizabeth C. Ogie, the niece of William B. Turner,
is a director of W.C. Bradley Co., Columbus Bank and Synovus and is an officer,
director and shareholder of TB&C Bancshares. W. Walter Miller, Jr., the
brother-in-law of Elizabeth C. Ogie, is a director of W.C. Bradley Co. and
Senior Vice President and a director of TSYS. Stephen T. Butler, the nephew of
William B. Turner, is an officer and director of W.C. Bradley Co., an officer,
director and shareholder of TB&C Bancshares and is a director of Columbus Bank.
W.B. Turner, Jr., the son of William B. Turner, is an officer and director of
W.C. Bradley Co., an officer, director and shareholder of TB&C Bancshares and a
director of Columbus Bank. John T. Turner, the son of William B. Turner, is an
officer and director of W.C. Bradley Co., a shareholder of TB&C Bancshares and a
director of Columbus Bank. Sarah T. Butler and Elizabeth T. Corn, the sisters of
William B. Turner, are shareholders of W.C. Bradley Co., are officers, directors
and shareholders of TB&C Bancshares and may be deemed to be principal
shareholders of Synovus as a result of their relationship with TB&C Bancshares.
Bradley & Hatcher, a law firm located in Columbus, Georgia, was paid
$67,184 for the performance of legal services on behalf of certain of
Synovus' subsidiaries during 1999. Richard Y. Bradley, a director of Synovus,
Columbus Bank and TSYS, is a partner of Bradley & Hatcher.
PRINCIPAL SHAREHOLDERS
The following table sets forth the number of shares of Synovus common stock
held by the only known holders of more than 5% of the outstanding shares of
Synovus common stock.
<TABLE>
<CAPTION>
Percentage of
Shares of Outstanding Shares of
Synovus Common Stock Synovus Common Stock
Name and Address of Beneficially Owned Beneficially Owned
Beneficial Owner as of 12/31/99 as of 12/31/99
- ----------------------- ------------------------- ---------------------------
<S> <C> <C>
Synovus Trust Company 36,230,295<F1> 12.8%
1148 Broadway
Columbus, Georgia 31901
TB&C Bancshares, Inc.<F2> 27,716,207 10.0
1017 Front Avenue
Columbus, Georgia 31901
William B. Turner<F2> 30,429,151<F3><F4> 10.8
P.O. Box 120
Columbus, Georgia 31902
Sarah T. Butler<F2> 30,493,678<F3><F5> 10.8
P.O. Box 120
Columbus, Georgia 31902
Elizabeth T. Corn<F2> 30,890,401<F3><F6> 10.9
P.O. Box 120
Columbus, Georgia 31902
W.B. Turner, Jr.<F2> 30,427,141<F3><F7> 10.8
P.O. Box 120
Columbus, Georgia 31902
Stephen T. Butler<F2> 30,459,988<F3><F8> 10.8
P.O. Box 120
Columbus, Georgia 31902
Elizabeth C. Ogie<F2> 30,564,337<F3><F9> 10.8
P.O. Box 120
Columbus, Georgia 31902
- -----------------------------------
<FN>
<F1> As of December 31, 1999, the banking and trust company subsidiaries of
Synovus, including Columbus Bank through its wholly owned subsidiary
Synovus Trust Company, held in various fiduciary capacities a total of
37,290,513 shares of Synovus common stock as to which they possessed sole
or shared voting or investment power. Of this total, Synovus Trust Company
held 21,770,571 shares as to which it possessed sole investment power,
20,750,255 shares as to which it possessed sole voting power, 882,959
shares as to which it possessed shared voting power and 14,361,371 shares
as to which it possessed shared investment power. The other banking and
trust subsidiaries of Synovus held 1,002,906 shares as to which they
possessed sole voting power, 721,250 shares as to which they possessed sole
investment power and 201,441 shares as to which they possessed shared
voting or investment power. In addition, as of December 31, 1999, Synovus
Trust Company and the banking and trust subsidiaries of Synovus held in
various agency capacities an additional 22,273,854 shares of Synovus common
stock as to which they possessed no voting or investment power. Of this
additional amount as to which no voting or investment power was possessed,
Synovus Trust Company and the banking and trust subsidiaries of Synovus
held 22,117,766 and 156,088 shares, respectively. Synovus and its
subsidiaries disclaim beneficial ownership of all shares of Synovus common
stock which are held by them in various fiduciary and agency capacities.
<F2> TB&C Bancshares, Inc. is a "family bank holding company" organized by
William B. Turner (the Chairman of Synovus' Executive Committee) and his
sisters, Sarah T. Butler and Elizabeth T. Corn. The six directors of TB&C
Bancshares, Mr. Turner, Mmes. Butler and Corn, Elizabeth C. Ogie (the
daughter of Mrs. Corn), Stephen T. Butler (the son of Mrs. Butler), and
William B. Turner, Jr. (the son of Mr. Turner), are each construed to be
the beneficial owners of the 27,716,207 shares of Synovus common stock
beneficially owned by TB&C Bancshares. As TB&C Bancshares owns 10% of
the outstanding shares of Synovus common stock, TB&C Bancshares is
registered as a bank holding company. To the best of Synovus' knowledge,
the shares of Synovus common stock beneficially owned by TB&C Bancshares
qualify for ten votes per share, subject to the completion by TB&C
Bancshares of the Certification contained on its proxy card.
<F3> Includes 14,404,364 shares of Synovus common stock individually owned by
TB&C Bancshares; 2,620,493 shares held by a charitable foundation of which
each of the directors of TB&C Bancshares is a trustee; in the case of Mrs.
Corn and Mrs. Ogie, 126,599 shares of Synovus common stock held by a
charitable foundation of which Mrs. Corn and Mrs. Ogie are trustees; and
13,311,843 shares of Synovus common stock beneficially owned by TB&C
Bancshares pursuant to a lease agreement between TB&C Bancshares and
Synovus Trust Company as Trustee of three trusts for the benefit of Mr.
Turner, Mrs. Butler and Mrs. Corn and their respective descendants.
Pursuant to the agreement, TB&C Bancshares leases from Synovus Trust
Company as Trustee of such trusts voting and certain other rights with
respect to the shares of Synovus common stock held in the trusts.
<F4> In addition to the shares of Synovus common stock described in footnote 3
above, Mr. Turner possessed sole voting and investment power with respect
to 72,634 shares and shared voting or investment power with respect to
19,817 shares of Synovus common stock.
<F5> In addition to the shares of Synovus common stock described in footnote 3
above, Mrs. Butler possessed sole voting and investment power with respect
to 65,430 shares and shared voting or investment power with respect to
91,548 shares of Synovus common stock.
<F6> In addition to the shares of Synovus common stock described in footnote 3
above, Mrs. Corn possessed sole voting and investment power with respect to
6,229 shares and shared voting or investment power with respect to 420,873
shares of Synovus common stock.
<F7> In addition to the shares of Synovus common stock described in footnote 3
above, Mr. Turner possessed sole voting and investment power with respect
to 74,800 shares and shared voting or investment power with respect to
15,641 shares of Synovus common stock.
<F8> In addition to the shares of Synovus common stock described in footnote 3
above, Mr. Butler possesssed sole voting and investment power with respect
to 118,344 shares and shared voting or investment power with respect to
4,944 shares of Synovus common stock.
<F9> In addition to the shares of Synovus common stock described in footnote 3
above, Mrs. Ogie possessed sole voting and investment power with respect to
68,551 shares and shared voting or investment power with respect to 32,487
shares of Synovus common stock.
</FN>
</TABLE>
RELATIONSHIPS BETWEEN SYNOVUS, COLUMBUS BANK, TSYS AND CERTAIN OF
SYNOVUS' SUBSIDIARIES AND AFFILIATES
BENEFICIAL OWNERSHIP OF TSYS COMMON STOCK BY COLUMBUS BANK
The following table sets forth, the number of shares of TSYS common stock
beneficially owned by Columbus Bank, the only known beneficial owner of more
than 5% of the issued and outstanding shares of TSYS common stock, as of
December 31, 1999.
<TABLE>
<CAPTION>
Percentage of
Shares of Outstanding Shares of
TSYS Common Stock TSYS Common Stock
Name and Address of Beneficially Owned Beneficially Owned
Beneficial Owner as of 12/31/99 as of 12/31/99
- ----------------------- ------------------------ ------------------------
<S> <C> <C>
Columbus Bank
and Trust Company 157,455,980<F1><F2> 80.8%
1148 Broadway
Columbus, Georgia 31901
- -----------------
<FN>
<F1> Columbus Bank individually owns these shares.
<F2> As of December 31, 1999, Synovus Trust Company held in various fiduciary
capacities a total of 1,639,923 shares (.84%) of TSYS common stock. Of this
total, Synovus Trust Company held 1,306,403 shares as to which it possessed
sole voting power, 1,263,558 shares as to which it possessed sole
investment power, 285,569 shares as to which it possessed shared voting
power and 292,719 shares as to which it possessed shared investment power.
In addition, as of December 31, 1999, Synovus Trust Company held in various
agency capacities an additional 2,087,506 shares of TSYS common stock as to
which it possessed no voting or investment power. Synovus and Synovus Trust
Company disclaim beneficial ownership of all shares of TSYS common stock
which are held by Synovus Trust Company in various fiduciary and agency
capacities.
</FN>
</TABLE>
Columbus Bank, by virtue of its ownership of 157,455,980 shares, or 80.8%
of the outstanding shares of TSYS common stock on December 31, 1999, presently
controls TSYS. Synovus presently controls Columbus Bank.
INTERLOCKING DIRECTORATES OF SYNOVUS, COLUMBUS BANK AND TSYS
Seven of the members of and nominees to serve on Synovus' Board of
Directors also serve as members of the Boards of Directors of TSYS and Columbus
Bank. They are James H. Blanchard, Richard Y. Bradley, Gardiner W. Garrard, Jr.,
John P. Illges, III, H. Lynn Page, William B. Turner and James D. Yancey.
Elizabeth C. Ogie serves as a member of the Board of Directors of Columbus Bank,
but does not serve as a member of the Board of Directors of TSYS. Mason H.
Lampton serves on the Board of Directors of TSYS and as an Advisory Director of
Columbus Bank.
TSYS COMMON STOCK OWNERSHIP OF DIRECTORS AND MANAGEMENT
The following table sets forth the number of shares of TSYS common stock
beneficially owned by each of Synovus' directors, by each executive officer
named in the Summary Compensation Table on page 15 and by all directors and
executive officers as a group as of December 31, 1999.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares of TSYS Shares of TSYS Percentage of
Common Stock Common Stock Total Outstanding
Beneficially Beneficially Shares Shares of
Owned with Owned with of TSYS TSYS Common
Sole Voting Shared Voting Common Stock Stock
and Investment and Investment Beneficially Beneficially
Power as of Power as of Owned as of Owned as of
Name 12/31/99 12/31/99 12/31/99 12/31/99
- --------------------------- ------------------- --------------------- ------------------- -------------
<S> <C> <C> <C> <C>
Richard E. Anthony ----- ----- ----- ---
Joe E. Beverly ----- ----- ----- ---
James H. Blanchard 783,443 360,480 1,143,923 *
Richard Y. Bradley 21,652 5,000 26,652 *
Walter M. Deriso, Jr. 3,853 3,829 7,682 *
C. Edward Floyd, M.D. ----- ----- ----- ---
Gardiner W. Garrard, Jr. 12,646 ----- 12,646 *
G. Sanders Griffith, III 19,422<F1> ----- 19,422 *
V. Nathaniel Hansford ----- 1,552 1,552 *
John P. Illges, III 103,797 81,750 185,547 *
Mason H. Lampton 39,647 104,234<F2> 143,881 *
Elizabeth C. Ogie 10,200 41,447<F3> 51,647 *
H. Lynn Page 347,546 314,596<F4> 662,142 *
Robert V. Royall 60,000 ----- 60,000 *
Melvin T. Stith ----- ----- ----- ---
William B. Turner 159,790 576,000 735,790 *
James D. Yancey 785,295 24,208 809,503 *
Directors and Executive
Officers as a Group
(21 persons) 2,366,001 1,513,096 3,879,097 2.0
*Less than one percent of the outstanding shares of TSYS common stock.
- -------------------
<FN>
<F1> Includes 16,734 shares of TSYS common stock with respect to which Mr.
Griffith has no investment power.
<F2> Includes 28,800 shares of TSYS common stock held in a trust for which Mr.
Lampton is not the trustee. Mr. Lampton disclaims beneficial ownership of
such shares.
<F3> Includes 39,168 shares of TSYS common stock held by a charitable foundation
of which Mrs. Ogie is a trustee.
<F4> Includes 48,742 shares of TSYS common stock held by a charitable foundation
of which Mr. Page is a trustee.
</FN>
</TABLE>
TRANSACTIONS AND AGREEMENTS BETWEEN SYNOVUS, COLUMBUS BANK, TSYS AND
CERTAIN OF SYNOVUS' SUBSIDIARIES
During 1999, Columbus Bank and certain of Synovus' other banking
subsidiaries received bankcard data processing services from TSYS. The bankcard
data processing agreement between Columbus Bank and TSYS can be terminated by
Columbus Bank upon 60 days prior written notice to TSYS or terminated by TSYS
upon 180 days prior written notice to Columbus Bank. During 1999, TSYS derived
$8,049,915 in revenues from Columbus Bank and certain of Synovus' other banking
subsidiaries for the performance of bankcard data processing services and
$221,844 in revenues from Synovus and its subsidiaries for the performance of
other data processing services. TSYS' charges to Columbus Bank and Synovus'
other banking subsidiaries for bankcard and other data processing services are
comparable to, and are determined on the same basis as, charges by TSYS to
similarly situated unrelated third parties.
Synovus Service Corp., a wholly owned subsidiary of Synovus, provides
various services to Synovus' subsidiary companies, including TSYS. TSYS and
Synovus Service Corp. are parties to a Lease Agreement pursuant to which Synovus
Service Corp. leased from TSYS office space for lease payments aggregating
$51,594 during 1999. Synovus Service Corp. also paid
TSYS $382,840 during 1999 for data processing services. The terms of these
transactions are comparable to those which could have been obtained in
transactions with unaffiliated third parties.
Synovus and TSYS and Synovus Service Corp. and TSYS are parties to
Management Agreements (having one year, automatically renewable, unless
terminated, terms), pursuant to which Synovus and Synovus Service Corp. provide
certain management services to TSYS. During 1999, these services included human
resource services, maintenance services, security services, communication
services, corporate education services, travel services, investor relations
services, corporate governance services, legal services, regulatory and
statutory compliance services, executive management services performed on behalf
of TSYS by certain of Synovus' officers and financial services. As compensation
for management services provided during 1999, TSYS paid Synovus and Synovus
Service Corp. management fees of $1,524,780 and $10,639,179, respectively.
Management fees are subject to future adjustments based upon charges at the time
by unrelated third parties for comparable services.
During 1999, Synovus Trust Company served as trustee of various employee
benefit plans of TSYS. During 1999, TSYS paid Synovus Trust Company trustee's
fees under these plans of $317,081.
During 1999, Columbus Depot Equipment Company, a wholly owned subsidiary of
TSYS, and Columbus Bank and 9 of Synovus' other subsidiaries were parties to
Lease Agreements pursuant to which Columbus Bank and 9 of Synovus' other
subsidiaries leased from Columbus Depot Equipment Company computer related
equipment for bankcard and bank data processing services for lease payments
aggregating $80,490. The terms, conditions and rental rates provided for
in these Agreements are comparable to corresponding terms, conditions and rates
provided for in leases of similar equipment offered by unrelated third parties.
During 1999, Synovus Technologies, Inc., a wholly owned subsidiary of
Synovus, paid TSYS $143,405 for data links, network services and other
miscellaneous items related to the data processing services which Synovus
Technologies provides to its customers, which amount was reimbursed to Synovus
Technologies by its customers. During 1999, Synovus Technologies paid TSYS
$24,900 primarily for computer processing services. During 1999, TSYS paid
Synovus Technologies $765,741 for lockbox services. The charges for processing
and other services are comparable to those between unrelated third parties.
During 1999, TSYS and Columbus Bank were also parties to a Lease Agreement
pursuant to which TSYS leased office space from Columbus Bank for lease payments
of $36,308. The terms, conditions and rental rates provided for in this Lease
Agreement are comparable to corresponding terms, conditions and rates provided
for in leases of similar facilities offered by unrelated third parties in the
Columbus, Georgia area. In addition, TSYS paid Columbus Bank $345,893 during
1999 for marketing rights. These charges are comparable to those between
unrelated third parties.
During 1999, Synovus, Columbus Bank and other Synovus subsidiaries paid to
Columbus Productions, Inc. and TSYS Total Solutions, Inc., wholly owned
subsidiaries of TSYS, an aggregate of $5,403,294 for printing, correspondence
and facilities management services. The charges for these services are
comparable to those between unrelated third parties.
During 1999, TSYS and its subsidiaries were paid $1,865,621 of interest by
Columbus Bank in connection with deposit accounts with, and commercial paper
purchased from, Columbus Bank. These interest rates are comparable to those in
transactions between unrelated third parties.
TSYS has entered into an agreement with Columbus Bank with respect to the
use of aircraft owned or leased by Columbus Bank and W.C.B. Air L.L.C. Columbus
Bank and W.C.B.Air are parties to a Joint Ownership Agreement pursuant to which
they jointly own or lease aircraft. TSYS paid Columbus Bank $881,970 for its
use of the aircraft during 1999. The charges payable by TSYS to Columbus Bank in
connection with its use of this aircraft approximate charges available to
unrelated third parties in the State of Georgia for use of comparable aircraft
for commercial purposes.
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934 requires Synovus'
officers and directors, and persons who own more than ten percent of Synovus
common stock, to file reports of ownership and changes in ownership on Forms 3,4
and 5 with the Securities and Exchange Commission and the New York Stock
Exchange. Officers, directors and greater than ten percent shareholders are
required by SEC regulations to furnish Synovus with copies of all Section 16(a)
forms they file.
To Synovus' knowledge, based solely on its review of the copies of such
forms received by it, and written representations from certain reporting persons
that no Forms 5 were required for those persons, Synovus believes that during
the fiscal year ended December 31, 1999 all Section 16(a) filing requirements
applicable to its officers, directors and greater than ten percent beneficial
owners were complied with, except that Ms. James filed an amended Form 3 to
correctly state her beneficial ownership of shares.
INDEPENDENT AUDITORS
On March 1, 2000, Synovus' Board of Directors appointed KPMG LLP as the
independent auditors to audit the consolidated financial statements of Synovus
and its subsidiaries for the fiscal year ending December 31, 2000. The Board of
Directors knows of no direct or material indirect financial interest by KPMG in
Synovus or any of its subsidiaries, or of any connection between KPMG and
Synovus or any of its subsidiaries, in any capacity as promoter, underwriter,
voting trustee, director, officer, shareholder or employee.
Representatives of KPMG will be present at Synovus' 2000 Annual Meeting
with the opportunity to make a statement if they desire to do so and will be
available to respond to appropriate questions.
GENERAL INFORMATION
FINANCIAL INFORMATION
Detailed financial information for Synovus and its subsidiaries for its
1999 fiscal year is included in Synovus' 1999 Annual Report that is being mailed
to Synovus' shareholders together with this Proxy Statement.
SHAREHOLDER PROPOSALS FOR THE 2001 PROXY STATEMENT
Any shareholder satisfying the Securities and Exchange Commission
requirements and wishing to submit a proposal to be included in the Proxy
Statement for the 2001 Annual Meeting of Shareholders should submit the proposal
in writing to the Secretary, Synovus Financial Corp., 901 Front Avenue, Suite
301, Columbus, Georgia 31901. Synovus must receive a proposal by November 16,
2000 in order to consider it for inclusion in the Proxy Statement for the 2001
Annual Meeting of Shareholders.
DIRECTOR NOMINEES OR OTHER BUSINESS FOR PRESENTATION AT THE ANNUAL MEETING
Shareholders who wish to present director nominations or other business at
the Annual Meeting are required to notify the Secretary of their intent at least
45 days but not more than 90 days before March 16, 2001 and the notice must
provide information as required in the bylaws. A copy of these bylaw
requirements will be provided upon request in writing to the Secretary, Synovus
Financial Corp., 901 Front Avenue, Suite 301, Columbus, Georgia 31901.
This requirement does not apply to the deadline for submitting shareholder
proposals for inclusion in the Proxy Statement (see "Shareholder Proposals for
the 2001 Proxy Statement" above), nor does it apply to questions a shareholder
may wish to ask at the meeting.
SOLICITATION OF PROXIES
Synovus will pay the cost of soliciting proxies. Proxies may be solicited
on behalf of Synovus by directors, officers or employees by mail, in person or
by telephone, facsimile or other electronic means. Synovus will reimburse
brokerage firms, nominees, custodians, and fiduciaries for their out-of-pocket
expenses for forwarding proxy materials to beneficial owners.
The above Notice of Annual Meeting and Proxy Statement are sent by order of
the Synovus Board of Directors.
By Order of the Board of Directors
/s/JAMES H. BLANCHARD
JAMES H. BLANCHARD
Chairman of the Board, Synovus Financial Corp.
March 16, 2000
APPENDIX A
SYNOVUS FINANCIAL CORP.
Post Office Box 120, Columbus, Georgia 31902-0120
ANNUAL MEETING OF SHAREHOLDERS TO BE HELD APRIL 20, 2000
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS.
By signing on the reverse side, I hereby appoint Thomas J. Prescott and Liliana
McDaniel as Proxies, each with full power of substitution, and hereby authorize
them to represent and to vote as designated below all the shares of common stock
of Synovus Financial Corp. held on record by me or with respect to which I am
entitled to vote on February 11, 2000 at the Annual Meeting of Shareholders
to be held on April 20, 2000 or any adjournment thereof.
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN ACCORDANCE WITH ANY
INSTRUCTION INDICATED HEREIN. IF NO INDICATION IS MADE, IT WILL BE VOTED IN
FAVOR OF THE PROPOSALS LISTED HEREIN.
The Board of Directors is not aware of any matters likely to be presented for
action at the Annual Meeting of Shareholders other than the matters listed
herein. However, if any other matters are properly brought before the Annual
Meeting, the persons named in this Proxy or their substitutes will vote upon
such other matters in accordance with their best judgement. This Proxy is
revocable at any time prior to its use.
By signing on the reverse side, I acknowledge receipt of NOTICE of said ANNUAL
MEETING and said PROXY STATEMENT and hereby revoke all Proxies heretofore given
by me for said ANNUAL MEETING.
IN ADDITION TO VOTING AND SIGNING THE PROXY, YOU MUST ALSO COMPLETE AND SIGN THE
CERTIFICATION TO BE ENTITLED TO TEN VOTES PER SHARE.
IF YOU DO NOT VOTE BY PHONE OR OVER THE INTERNET,
PLEASE VOTE, DATE AND SIGN ON THE REVERSE SIDE AND RETURN PROMPTLY
IN THE ENCLOSED ENVELOPE.
Please sign exactly as your name appears on this Proxy. When shares are held by
joint tenants, both must sign. When signing in a fiduciary or representative
capacity, give your full title as such. If a corporation, please sign in full
corporate name by an authorized officer. If a partnership, please sign in full
partnership name by an authorized person.
[X] PLEASE MARK VOTES AS
IN THIS EXAMPLE
PROXY CERTIFICATE OF BENEFICIAL OWNER
THE BOARD OF DIRECTORS RECOMMENDS A INSTRUCTIONS:Please provide the required
VOTE FOR THE PROPOSALS LISTED BELOW. information. THIS CERTIFICATE MUST BE
SIGNED TO BE VALID. If you do not com-
1. Proposal to elect as directors plete and sign this Certificate of Bene-
to serve until the Annual ficial Owner, your shares covered by the
Meeting of Shareholders in 2003. Proxy to the left will be voted on the
basis of one vote per share.
(01) Richard Y. Bradley, Yes No
(02) John P. Illges, III and A. Are you the beneficial owner, [ ] [ ]
(03) William B. Turner in all capacities, of more than
1,139,063 shares of Synovus Common
With- For all Stock?
For hold Except If you answered "No" to Question A,
[ ] [ ] [ ] do not answer B or C. Your shares
respresented by the Proxy to the left
are entitled to ten votes per share.
INSTRUCTION: To withhold Yes No
authority to vote for any B. If your answer to question A [ ] [ ]
individual nominee, mark was "Yes", have you acquired
the "For All Except" box and more than 1,139,063 shares of
strike a line through that Synovus Common Stock since
nominee's name in the list February 11, 1996 (including
above. shares received as a stock dividend)?
If you answered "No" to Question B,
do not answer Question C. Your shares
2. Proposal to Approve the represented by the Proxy to the left
Synovus Financial Corp. are entitled to ten votes per share.
2000 Long-Term Incentive Plan.
C. If you answered "Yes" to Question B,
please describe the date and nature
For Against Abstain of your acquisition of all shares of
[ ] [ ] [ ] Synvous Common Stock you have
acquired since February 11, 1996
CONTROL NUMBER: (including shares acquired as a
RECORD DATE SHARES: result of a stock dividend). Your re-
sponse to Question C will determine
which, if any, of the shares repre-
sented by the Proxy will be entitled
to ten votes per share.
________________________________________
________________________________________
________________________________________
To the best of my knowledge and belief,
the information provided herein is true
and correct. I understand that the Board
of Directors of Synovus Financial Corp.
may require me to provide additional
information or evidence to document my
beneficial ownership of these shares and
I agree to provide such evidence if so
requested.
Please be sure to sign and [Date ]
date this Proxy. [Date ]
Shareholder Shareholder
sign here Co-owner sign here sign here Co-owner sign here
SYNOVUS FINANCIAL CORP.
DETATCH CARD DETATCH CARD
VOTE BY TELEPHONE VOTE BY INTERNET
It's fast, convenient, and immediate! It's fast, convenient, and your vote
Call Toll-Free on a Touch-Tone Phone is immediately confirmed and posted.
Follow these four easy steps: Follow these four easy steps:
1. Read the accompanying Proxy 1. Read the accompanying Proxy
Statement and Proxy Card. Statement and Proxy Card.
2. Call the toll-free number 2. Go to the Website
1-877-PRX-VOTE (1-877-779-8683). For http://www.eproxyvote.com/snv
shareholders residing outside the
United States call collect on a 3. Enter your Control Number located
touch tone phone 1-201-536-8073. on your Proxy Card.
There is NO CHARGE for this call.
3. Enter your Control Number located 4. Follow the instructions provided.
on your Proxy Card.
4. Follow the recorded instructions.
Your vote is important! Your vote is important!
Call 1-877-PRX-VOTE anytime! Go to
http://www.eproxyvote.com/snv anytime!
YOU MAY NOT VOTE BY PHONE OR THE INTERNET UNLESS YOU ARE ENTITLED TO TEN VOTES
PER SHARE AS DESCRIBED IN THE PROXY CARD ABOVE. IF YOU CHOOSE TO VOTE BY
TELEPHONE OR THE INTERNET, SYNOVUS WILL CONSIDER YOUR VOTE AS THE CERTIFICATION
THAT YOU ARE ENTITLED TO TEN VOTES PER SHARE.
DO NOT RETURN YOUR PROXY CARD IF YOU ARE VOTING BY TELEPHONE OR INTERNET.
APPENDIX B
SYNOVUS FINANCIAL CORP.
2000 EMPLOYEE LONG-TERM INCENTIVE PLAN
SECTION 1. General Purpose of Plan
The name of this plan is the Synovus Financial Corp. 2000 Employee Long-Term
Incentive Plan (the "Plan"), formerly the 1996 Employee Long-Term Incentive
Plan. The purpose of the Plan is to enable Synovus Financial Corp. (the
"Corporation") and its Subsidiaries to attract, retain, motivate, and reward
employees who make a significant contribution to the Corporation's long-term
success, and to enable such employees to acquire and maintain an equity interest
in Synovus Financial Corp.
SECTION 2. Definitions
For purposes of the Plan, the following terms shall be defined as set forth
below:
a. "Award" means any award of Stock Options, Option Price Adjustment
Rights, Stock Appreciation Rights, Restricted Stock, or Performance
Awards, whether in cash or stock or a combination thereof,
authorized by the Committee under this Plan.
b. "Board" means the Board of Directors of the Corporation or the
Executive Committee of the Board of Directors of the Corporation.
c. "Cause" means a felony conviction of a Participant or the failure of
a Participant to contest prosecution for a felony, or a
Participant's willful misconduct, dishonesty, embezzlement, fraud,
deceit or civil rights violations, any of which acts cause the
Corporation or any Subsidiary liability or loss, as determined by
the Board.
d. "Code" means the Internal Revenue Code of 1986, as amended, or any
successor thereto.
e. "Committee" means the Compensation Committee, or any other committee
of the Board appointed for the purpose of administering the Plan,
which committee shall consist exclusively of two or more
Disinterested Persons, at least two of whom are directors of both
the Corporation and of Total System. In the context of Awards made
to employees of Total System, the term "Committee" shall mean only
those members of the Committee who are directors of both the
Corporation and of Total System.
f. "Commission" means the Securities and Exchange Commission.
g. "Corporation" means Synovus Financial Corp.
h. "Disability" means total and permanent physical or mental disability
or incapacity of an employee to fulfill at any time or from time to
time his normal duties as an employee, as certified in writing by
two competent physicians, one of which shall be selected by the
Committee and the other of which shall be selected by the employee
or his duly appointed guardian or legal or personal representative.
In addition, for purposes of determining Disability as it applies to
any Incentive Stock Option, the term "Disability" shall be
interpreted consistently with Code Sections 421-424.
i. "Disinterested Person" is a person who meets both (i) the definition
of "disinterested person" as set forth in Rule 16b-3 as promulgated
by the Commission under the Exchange Act, or any successor
definition adopted by the Commission, and (ii) the definition of
"outside director" as set forth in Code Section 162(m), as amended
from time to time.
j. "Early Retirement" means retirement from active employment with the
Corporation or any Subsidiary pursuant to the early retirement
provisions of the applicable Corporation or Subsidiary pension plan.
k. "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and any successor thereto.
l. "Fair Market Value" means, as of any given date, the closing price
of the Stock on such date (or if no transactions were reported on
such date on the next preceding date on which transactions were so
reported) in the principal market in which such Stock is traded on
such date as reported in The Wall Street Journal (or any other
publication designated by the Committee) except that, with respect
to grants of Restricted Stock, "Fair Market Value" for Restricted
Stock on the date of grant shall be determined as of the time and
date of the Restricted Stock grant by the Compensation Committee.
m. "Incentive Stock Option" means any Stock Option intended to be and
designated as an "incentive stock option" within the meaning of
Section 422 of the Code.
n. "Non-Qualified Stock Option" means any Stock Option that is not an
Incentive Stock Option.
o. "Normal Retirement" means retirement from active employment with the
Corporation or any Subsidiary on or after the normal retirement date
specified in the applicable Corporation or Subsidiary pension plan.
p. "Option Price Adjustment Right" means a right granted under Section
6 in tandem with a Stock Option which entitles the recipient to have
applied as a credit against the exercise price of the related Stock
Option an amount equal to: (i) the total number of shares of stock
subject to the Option Price Adjustment Right (or the portion or
portions thereof which the recipient from time to time elects to use
for this purpose), multiplied by (ii) a fixed percentage of the Fair
Market Value of a share of Stock on a date to be designated by the
Committee.
q. "Participant" means any employee of the Corporation and its
Subsidiaries designated by the Committee to receive an Award
under the Plan.
r. "Performance Award" means an award of shares of Stock or cash to a
Participant pursuant to Section 9 contingent upon achieving certain
performance goals.
s. "Plan" means this Synovus Financial Corp. 2000 Employee Long-Term
Incentive Plan.
t. "Restricted Stock" means an award of shares of Stock that are
subject to restrictions under Section 8.
u. "Retirement" means Normal or Early Retirement under the applicable
Corporation or Subsidiary pension plan.
v. "Stock" means the common stock of the Corporation or any successor
corporation.
w. "Stock Appreciation Right" means a right granted under Section 7,
which entitles the holder to receive a cash payment or an award of
Stock or, if applicable, as a credit against the purchase price of a
related Stock Option, in an amount equal to the difference between
(i) the Fair Market Value of the Stock covered by such right at the
date the right is granted and (ii) the Fair Market Value of the
Stock covered by such right at the date the right is exercised,
unless otherwise determined by the Committee pursuant to Section 7,
multiplied by the number of shares covered by the right.
x. "Stock Option" means any option to purchase shares of Stock granted
to employees pursuant to Section 6.
y. "Subsidiary" means any corporation (other than Synovus Financial
Corp.) in an unbroken chain of corporations beginning with the
Corporation if each of the corporations (other than the last
corporation in the unbroken chain) owns stock possessing 50% or more
of the total combined voting power of all classes of stock in one of
the other corporations in the chain.
z. "Total System" means Total System Services, Inc., a Subsidiary of
the Corporation of which approximately 19% of the stock is publicly
held.
SECTION 3. Administration
The Plan shall be administered by the Committee which shall at all times consist
of not less than two Disinterested Persons, at least two of whom are directors
of both the Corporation and of Total System. Whenever under this Plan, any act
or decision is to be made with respect to Awards made to employees of Total
System, including without limitation the selection of Total System employees
for the grant of Awards and the establishment, administration and certification
of attainment of relevant performance goals, if any, such act or decision shall
be made by, and the term "Committee" in that context shall mean, only those
members of the Committee who are directors of both the Corporation and of Total
Systems.
The Committee shall have the power and authority to grant to eligible employees,
pursuant to the terms of the Plan: (i) Stock Options; (ii) Option Price
Adjustment Rights; (iii) Stock Appreciation Rights; (iv) Restricted Stock; or
(v) Performance Awards.
In particular, the Committee shall have the authority:
(i) to select the employees of the Corporation and its Subsidiaries to
whom Stock Options, Option Price Adjustment Rights, Stock Appreciation
Rights, Restricted Stock, or Performance Awards or a combination of
the foregoing from time to time will be granted hereunder; (ii) to
grant Incentive Stock Options, Non-Qualified Stock Options, Option
Price Adjustment Rights, Stock Appreciation Rights, Restricted Stock,
or Performance Awards, or a combination of the foregoing, hereunder;
(iii) to determine the number of shares of Stock to be covered by each
such Award granted hereunder;
(iv) to determine the terms and conditions, not inconsistent with the terms
of the Plan, of any Award granted hereunder including, but not limited
to, any restriction on any Award and/or the shares of Stock relating
thereto based on performance and/or such other factors as the
Committee may determine, in its sole discretion, and any vesting
acceleration features based on performance and/or such other factors
as the Committee may determine, in its sole discretion;
(v) to determine whether, to what extent and under what circumstances
Stock and other amounts payable with respect to an Award under this
Plan shall be deferred either automatically or at the election of a
Participant, including providing for and determining the amount (if
any) of deemed earnings on any deferred amount during any deferral
period.
Subject to Section 10, the Committee shall have the authority to adopt, alter
and repeal such administrative rules, guidelines and practices governing the
Plan as it shall, from time to time, deem advisable; to interpret the terms and
provisions of the Plan and any Award issued under the Plan (and any agreements
relating thereto); and to otherwise supervise the administration of the Plan.
All decisions made by the Committee pursuant to the provisions of the Plan shall
be final and binding on all persons, including the Corporation and all Plan
Participants. It is not anticipated that the Plan will be presented for
shareholder approval.
SECTION 4. Stock Subject to Plan
The total number of shares of Stock reserved and available for distribution
under the Plan shall be 20,000,000. Such shares may consist, in whole or in
part, of authorized and unissued shares or treasury shares.
If any shares of Stock that have been subject to option cease to be subject to
option without having been exercised, or if any shares subject to any Restricted
Stock, Option Price Adjustment Rights, Stock Appreciation Rights, or Performance
Awards granted hereunder are forfeited or such Awards are otherwise terminated
without having been exercised, such shares shall again be available for
distribution in connection with future Awards under the Plan in each case to the
full extent available pursuant to the rules and interpretations of the
Securities and Exchange Commission under Section 16 of the Exchange Act. In the
event that prior to the Award's cancellation, termination, expiration, or lapse,
the holder of the Award at any time received one or more "benefits of ownership"
pursuant to such Award (as defined by the Securities and Exchange Commission,
pursuant to any rule or interpretation promulgated under Section 16 of the
Exchange Act), the Stock subject to such Award shall not be available for
regrant under the Plan.
In the event of any merger, reorganization, consolidation, recapitalization,
stock dividend, or other change in corporate structure affecting the Stock, a
substitution or adjustment shall be made in the aggregate number of shares
reserved for issuance under the Plan, in the number and option price of shares
subject to outstanding Stock Options granted under the Plan and in the number of
shares subject to Stock Appreciation Rights, Option Price Adjustment Rights,
Restricted Stock or Performance Awards granted under the Plan as may be
determined to be appropriate by the Committee, in its sole discretion, in order
to preserve each Participant's rights substantially proportionate to the
Participant's rights existing prior to such event, provided that the number of
shares subject to any Award shall always be a whole number. Such adjusted option
price shall also be used to determine the amount payable by the Corporation upon
the exercise of any Stock Appreciation Rights or Option Price Adjustment Rights
associated with any Stock Option the price of which is adjusted.
Notwithstanding any provision in the Plan to the contrary, the maximum number of
shares of Stock with respect to one or more Awards that may be granted to any
one Participant in any calendar year shall be 2,000,000.
SECTION 5. Eligibility
Any employee of the Corporation or any of its Subsidiaries (but excluding
members of the Committee and any person who is a director of the Corporation or
any Subsidiary, but not an employee of the Corporation or any Subsidiary) is
eligible to be granted Stock Options, Option Price Adjustment Rights, Stock
Appreciation Rights, Restricted Stock or Performance Awards. The Participants
under the Plan shall be selected from time to time by the Committee, in its sole
discretion, from among those eligible, and the Committee shall determine, in its
sole discretion, the number of shares covered by each Award or grant.
SECTION 6. Stock Options
Stock Options may be granted either alone or in addition to other Awards granted
under the Plan. Any Stock Option granted under the Plan shall be in such form as
the Committee may from time to time approve, and the provisions of Stock Option
Awards need not be the same with respect to each optionee.
The Stock Options granted under the Plan may be of two types: (i) Incentive
Stock Options (subject to the provisions of Section 15 of the Plan) and (ii)
Non-Qualified Stock Options.
The Committee shall have the authority to grant any optionee Incentive Stock
Options, Non-Qualified Stock Options, or both types of Stock Options (in each
case with or without Option Price Adjustment Rights or Stock Appreciation
Rights). To the extent that any Stock Option does not qualify as an Incentive
Stock Option, it shall constitute a separate Non-Qualified Stock Option.
Anything in the Plan to the contrary notwithstanding, no term of this Plan
relating to Incentive Stock Options shall be interpreted, amended or altered,
nor shall any discretion or authority granted under the Plan be so exercised, so
as to disqualify either the Plan or any Incentive Stock Option under Section 422
of the Code.
Stock Options granted under the Plan shall be subject to the following terms and
conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable:
(a) Option Price. The option price per share of Stock purchasable under a
Stock Option shall be determined by the Committee at the time of
grant. The option price per share of Stock may be equal to or more or
less than the Fair Market Value of the Stock on the date of grant,
except that the option price for any Incentive Stock Option shall be
not less than 100% of the Fair Market Value of the Stock on the date
of the grant of the Stock Option (determined without regard to any
Option Price Adjustment Rights or Stock Appreciation Rights). If the
option is an Incentive Stock Option and if the employee to whom the
Incentive Stock Option is granted owns directly or indirectly more
than 10% of the total combined voting power of all classes of Stock
immediately before the grant of the option, then the option price per
share of Stock must be at least 110% of the Fair Market Value of the
Stock on the date of grant.
(b) Option Term. The term of each Stock Option shall be fixed by the
Committee, but no Stock Option shall be exercisable more than ten
years after the date such Stock Option is granted. If the option is an
Incentive Stock Option and if the employee to whom the Incentive Stock
Option is granted owns directly or indirectly more than 10% of the
total combined voting power of all classes of Stock immediately before
the grant of the option, then the term of the option may not exceed
five years.
(c) Exercisability. Subject to paragraph (j) of this Section 6 with
respect to Incentive Stock Options, Stock Options shall be exercisable
at such time or times and subject to such terms and conditions as
shall be determined by the Committee at grant, provided, however, that
except as provided in paragraphs (f) and (g) of Section 6, unless a
longer vesting period is otherwise determined by the Committee at
grant, no Stock Option shall be exercisable for a period of six months
after the date of the grant of the option. If the Committee provides,
in its discretion, that any Stock Option is exercisable only in
installments, the Committee may waive such installment exercise
provision at any time in whole or in part based on performance and/or
such other factors as the Committee may determine in its sole
discretion.
(d) Method of Exercise. Stock Options may be exercised in whole or in part
at any time during the exercise period described in Section 6(c) by
giving written notice of exercise to the Corporation specifying the
number of shares to be purchased, accompanied by payment in full of
the purchase price, in cash, by check or such other instrument as may
be acceptable to the Committee. If approved and as determined by the
Committee, in its sole discretion, at or after grant, payment in full
or in part may also be made in the form of unrestricted Stock owned by
the optionee (based on the Fair Market Value of the Stock on the date
the option is exercised, as determined by the Committee). Payment of
the exercise price of a Stock Option and any withholding tax due at
exercise also may be made through any program or procedure (including
but not limited to a broker-dealer cashless exercise program) if
approved by the Committee. No shares of Stock resulting from the
exercise of a Stock Option shall be issued until full payment therefor
has been made. An optionee shall have the rights to dividends or other
rights of a stockholder with respect to shares subject to the option
when the optionee has given written notice of exercise and has paid in
full for such shares.
(e) Transferability of Options.
(1) Incentive Stock Options. No Incentive Stock Option shall be
transferable by the optionee, otherwise than by will or by the
laws of descent and distribution, or be subject to attachment,
execution or similar process. All Incentive Stock Options shall
be exercisable, during the optionee's lifetime, only by the
optionee.
(2) Non-Qualified Stock Options. Non-Qualified Stock Options shall
likewise be non-transferable by the optionee, otherwise than by
will or by the laws of descent and distribution, and not subject
to attachment, execution or similar process; provided, however,
that the Committee may by resolution or after grant designate
existing or future Non-Qualified Stock Options as "transferable,"
meaning that the optionee may sign an agreement which transfers
all or a portion of such Non-Qualified Stock Option (either
exercisable or non-exercisable) to (A) a member of the optionee's
Immediate Family, (B) any trust or trusts in which members of the
optionee's Immediate Family have more than a fifty percent (50%)
beneficial interest, (C) any entity in which optionee and/or
members of the optionee's Immediate Family own more than fifty
percent (50%) of the voting interests, or (D) any foundation in
which optionee and/or optionee's Immediate Family members control
the management of the foundation's assets, subject to such terms
and conditions as the Committee may establish. The form of
agreement pursuant to which such options are transferred must be
approved by the Committee and executed by the optionee,
transferee and the Company. Following transfer, any such options
shall continue to be subject to the same terms and conditions as
were applicable immediately prior to transfer, except that the
term "optionee" shall be deemed to refer to the transferee
subject to any terms and conditions established by the Committee.
Subsequent transfers of such transferred options shall be
prohibited, except by will or the laws of descent and
distribution. For purposes of this Subsection, "Immediate Family"
means the optionee's child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling,
mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, sister-in-law, nephew or niece of the optionee
(including by adoption), and any person sharing the optionee's
household (other than a tenant or employee).
(f) Termination by Death (other than by suicide). Unless otherwise
determined by the Committee at or after grant, if any optionee's
employment with the Corporation or any Subsidiary terminates by reason
of death (other than by suicide), the Stock Option may thereafter be
immediately exercised, to the extent then exercisable (or on such
accelerated basis as the Committee shall determine at or after grant),
by the legal representative of the estate or by the legatee of the
optionee under the will of the optionee, for a period of one year from
the date of such death or until the expiration of the stated term of
such Stock Option, whichever period is the shorter.
(g) Termination by Reason of Disability. Unless otherwise determined by
the Committee at or after grant, if any optionee's employment with the
Corporation or any Subsidiary terminates by reason of Disability, any
Stock Option held by such optionee may thereafter be exercised, to the
extent it was exercisable at the time of termination due to Disability
(or on such accelerated basis as the Committee shall determine at or
after grant), but may not be exercised after one year from the date of
such termination of employment or the expiration of the stated term of
such Stock Option, whichever period is the shorter; provided, however,
that, if the optionee dies within such one year period, any
unexercised Stock Option held by such optionee shall thereafter be
exercisable to the extent to which it was exercisable at the time of
death for a period of twelve months from the date of such death or for
the stated term of such Stock Option, whichever period is the shorter.
In the event of termination of employment by reason of Disability, if
an Incentive Stock Option is exercised after the expiration of the
exercise periods that apply for purposes of Section 422 of the Code,
such Stock Option will thereafter be treated as a Non-Qualified Stock
Option.
(h) Termination by Reason of Retirement. Unless otherwise determined by
the Committee at or after grant, if any optionee's employment with the
Corporation or any Subsidiary terminates by reason of Normal or Early
Retirement, any Stock Option held by such optionee may thereafter be
exercised to the extent it was exercisable at the time of such
Retirement (or on such accelerated basis as the Committee shall
determine at or after grant), but may not be exercised after the
expiration of the stated term of such Stock Option; and, provided that
if the optionee dies within such period any unexercised Stock Option
held by such optionee shall thereafter be exercisable, to the extent
to which it was exercisable at the time of death, for the remainder of
the stated term of the Stock Option. In the event of termination of
employment by reason of Retirement, if an Incentive Stock Option is
exercised after the exercise periods that apply for purposes of
Section 422 of the Code, such Stock Option will thereafter be treated
as a Non-Qualified Stock Option.
(i) Other Termination. Unless otherwise determined by the Committee at or
after grant, if an optionee's employment with the Corporation or any
Subsidiary terminates for Cause or for death by reason of suicide or
for any reason other than Disability or Normal or Early Retirement or
death other than by suicide, the Stock Option shall thereupon
terminate, except that such Stock Option may be exercised to the
extent such Stock Option could have been exercised on the date of
cessation of employment for the lesser of three months from the date
of termination or the balance of such Stock Option's term if the
optionee's employment with the Corporation or any Subsidiary is
involuntarily terminated by the optionee's employer without Cause.
(j) Limit on Value of Incentive Stock Options First Exercisable Annually.
The aggregate Fair Market Value (determined at the time of grant) of
the Stock for which "incentive stock options" within the meaning of
Section 422 of the Code are exercisable for the first time by an
optionee during any calendar year under the Plan (and/or any other
stock option plans of the Corporation or any Subsidiary) shall not
exceed $100,000.
(k) Option Price Adjustment Rights. The Committee shall have the
discretion to grant Option Price Adjustment Rights in conjunction with
all or part of any Stock Option granted under the Plan, either at or
after the time of grant of such Stock Option. Option Price Adjustment
Rights shall be exercisable only at such time as and to the same
extent that the Stock Options to which the Option Price Adjustment
Rights relate are exercisable. An Option Price Adjustment Right
granted with respect to a given Stock Option shall terminate and no
longer be exercisable upon the termination or exercise of the related
Stock Option. An Option Price Adjustment Right may be exercised by an
optionee by exercising and surrendering the applicable potion of the
related Stock Option. Upon such exercise and surrender, the optionee
shall be entitled to have applied as a credit against the exercise
price of the related Stock Option an amount equal to: (i) the total
number of shares of stock subject to the Option Price Adjustment Right
(or the portion or portions thereof which the optionee from time to
time elects to use for this purpose), multiplied by (ii) a fixed
percentage of the Fair Market Value of a share of Stock on a date to
be designated by the Committee.
SECTION 7. Stock Appreciation Rights
(a) Grant and Exercise When Granted in Conjunction With Stock Options.
Stock Appreciation Rights may be granted alone or in conjunction with
all or part of any Stock Option granted under the Plan and may contain
terms and conditions different from those of the related Stock Option,
except as otherwise provided below. In the case of a Non-Qualified
Stock Option, such rights may be granted either at or after the time
of the grant of such Non-Qualified Stock Option. In the case of an
Incentive Stock Option, such rights may be granted only at the time of
the grant of such Incentive Stock Option.
A Stock Appreciation Right or applicable portion thereof granted
with respect to a given Stock Option shall terminate and no longer
be exercisable upon the termination or exercise of the related
Stock Option, except that, unless otherwise provided by the
Committee at the time of grant, a Stock Appreciation Right granted
with respect to less than the full number of shares covered by a
related Stock Option shall only be reduced if and to the extent
that the number of shares covered by the exercise or termination
of the related Stock Option exceeds the number of shares not
covered by the Stock Appreciation Right.
A Stock Appreciation Right may be exercised by an optionee, in
accordance with paragraph (c) of this Section 7, by surrendering
the applicable portion of the related Stock Option. Upon such
exercise and surrender, the optionee shall be entitled to receive
an amount determined in the manner prescribed in paragraph (c) of
this Section 7. Stock Options which have been so surrendered, in
whole or in part, shall no longer be exercisable to the extent the
related Stock Appreciation Rights have been exercised.
(b) Grant and Exercise When Granted Alone. Stock Appreciation Rights may
be granted at the discretion of the Committee in a manner not related
to an award of a Stock Option. The Committee should have the
discretion to determine the terms and conditions of any Stock
Appreciation Rights not related to a Stock Option Award. A Stock
Appreciation Right granted under this Section 7(b) is not exercisable
for a period of six months from the date of grant, unless a longer
period is otherwise determined by the Committee. The Stock
Appreciation Right, granted under Section 7(b), shall be exercisable
in accordance with Section 7(c) over a period not to exceed ten years.
Any Stock Appreciation Right which is outstanding on the last day of
the exercisable period shall be automatically exercised on such date
for cash or Common Stock, as determined by the Committee, without any
action by the holder if, on that date, the Fair Market Value of the
Stock exceeds the exercise price of the Stock Appreciation Right.
(c) Terms and Conditions. Stock Appreciation Rights shall be subject to
such terms and conditions, not inconsistent with the provisions of the
Plan, as shall be determined from time to time by the Committee,
including the following:
(i) Stock Appreciation Rights granted pursuant to Section 7(a) shall
be exercisable only at such time or times and to the extent that
the Stock Options to which the Stock Appreciation Rights relate
shall be exercisable in accordance with the provisions of Section
6 and this Section 7 of the Plan; provided, however, that any
Stock Appreciation Right granted subsequent to the grant of the
related Stock Option shall not be exercisable during the first
six months of the term of the Stock Appreciation Right, except
that this additional limitation shall not apply in the event of
death other than by suicide or Disability of the optionee prior
to the expiration of the six-month period.
(ii) Upon the exercise of a Stock Appreciation Right granted pursuant
to Section 7(a), an optionee shall be entitled to receive an
amount in cash or shares of Stock equal in value to the excess of
the Fair Market Value of one share of Stock over the option price
per share specified in the related Stock Option, multiplied by
the number of shares in respect of which the Stock Appreciation
Right shall have been exercised, with the Committee having the
right to determine the form of payment. Upon the exercise of a
Stock Appreciation Right granted pursuant to Section 7(b), the
holder shall be entitled to receive an amount in cash or shares
of Stock equal in value to the excess of the Fair Market Value of
one share of Stock over the Fair Market Value of one share of
Stock at the date the Stock Appreciation Right was granted
multiplied by the number of shares in respect of which the Stock
Appreciation Right shall have been exercised, with the Committee
having the right to determine the form of payment.
(iii)No Stock Appreciation Right shall be transferable by the holder,
other than by will or the laws of descent and distribution, or be
subject to attachment, execution or similar process. All Stock
Appreciation Rights shall be exercisable, during the holder's
lifetime, only by the holder.
(iv) Upon the exercise of a Stock Appreciation Right granted pursuant
to Section 7(a), the Stock Option or part thereof to which such
Stock Appreciation Right is related shall be deemed to have been
exercised for the purpose of the limitation set forth in Section
4 of the Plan on the number of shares of Stock to be issued under
the Plan.
(v) A Stock Appreciation Right granted in connection with an
Incentive Stock Option pursuant to Section 7(a), may be exercised
only if and when the market price of the Stock subject to the
Incentive Stock Option exceeds the exercise price of such Stock
Option.
(vi) In its sole discretion, the Committee may provide, at the time of
grant of a Stock Appreciation Right under this Section 7, that
such Stock Appreciation Right can be exercised only in the event
of a "Change of Control" (as defined in Section 12 below).
Furthermore, the Committee may provide, at the time of grant of
any Stock Appreciation Right, that such Stock Appreciation Right
can be exercised only upon the attainment of specified
performance goals or other such criteria as the Committee may
determine in its sole discretion.
(vii)In the discretion of the Committee, if the Plan is approved by
the shareholders of the Corporation in accordance with Section 15
of the Plan, a Stock Appreciation Right may provide that any
exercise by a Participant of all or a portion of a Stock
Appreciation Right for cash, may only be made during the period
beginning on the third business day following the date of the
Corporation's release of its quarterly or annual summary
statements of earnings to the public and ending on the twelfth
business day following such date; provided, however, that the
foregoing shall not apply to any exercise by a Participant of a
Stock Appreciation Right for cash where the date of exercise is
automatic or fixed in advance under the Plan and is outside the
control of the Participant.
SECTION 8. Restricted Stock
(a) Administration. Shares of Restricted Stock may be issued either alone
or in addition to other Awards granted under the Plan. The Committee
shall determine the employees of the Corporation and its Subsidiaries
to whom, and the time or times at which, grants of Restricted Stock
will be made, the number of shares to be awarded, the price, if any,
to be paid by the recipient of Restricted Stock (subject to Section
8(b) hereof), the time or times within which such Awards may be
subject to forfeiture, the nature of the restrictions, including any
performance requirements, the circumstances under which restrictions
will lapse and all other conditions of the Awards. The Committee may
also condition the grant of Restricted Stock upon the attainment of
specified performance goals, or such other criteria as the Committee
may determine, in its sole discretion. The provisions of Restricted
Stock Awards need not be the same with respect to each recipient.
(b) Awards and Certificates. The prospective recipient of an Award of
shares of Restricted Stock shall not have any rights with respect to
such Award, unless and until such recipient has executed an agreement
evidencing the Award (a "Restricted Stock Award Agreement") and has
delivered a fully executed copy thereof to the Corporation, and has
otherwise complied with the then applicable terms and conditions.
(i) Awards of Restricted Stock must be accepted within a period of
thirty days (or such shorter period as the Committee may specify)
after the Award date by executing a Restricted Stock Award
Agreement and paying whatever price, if any, is required.
(ii) Each Participant who is awarded Restricted Stock shall be issued
a stock certificate in respect of such shares of Restricted Stock
to be held in escrow as described below.
Such certificate shall be registered in the name of the
Participant, and shall bear an appropriate legend
referring to the terms, conditions, and restrictions
applicable to such Award, substantially in the
following form:
"The transferability of this certificate and the
shares of stock represented hereby are subject to
the terms and conditions (including forfeiture)
of the Synovus Financial Corp. 2000 Employee
Long-Term Incentive Plan and a Restricted Stock
Award Agreement entered into between the
registered owner and Synovus Financial Corp.
Copies of such Plan and Agreement are on file in
the offices of Synovus Financial Corp., One
Arsenal Place, 901 Front Avenue, Suite 301,
Columbus, Georgia, 31901."
(iii)The Committee shall require that the stock certificate
evidencing such shares be held in escrow by Synovus Trust Company
("STC"), or any other escrow agent designated by the Committee
until the restrictions thereon shall have lapsed, and that, as a
condition of any Restricted Stock Award, the Participant shall
have delivered a stock power, endorsed in blank, relating to the
Stock covered by such Award. In the event the Participant has
obtained a loan to purchase the Restricted Stock or to pay any
taxes due with respect to the Restricted Stock, STC or other
escrow agent shall have the right to require that the shares
continue to be held in escrow until such loan is repaid.
(c) Restrictions and Conditions. The shares of Restricted Stock awarded
pursuant to this Section 8 shall be subject to the following
restrictions and conditions:
(i) Subject to the provisions of this Plan and Restricted Stock Award
Agreements, during the period of six months after the Award or
such longer period as may be set by the Committee commencing on
the grant date (the "Restriction Period"), the Participant shall
not be permitted to sell, transfer, pledge or assign shares of
Restricted Stock awarded under the Plan. Within these limits, the
Committee may, in its sole discretion, provide for the lapse of
such restrictions in installments and may accelerate or waive
such restrictions in whole or in part based on performance and/or
such other factors as the Committee may determine, in its sole
discretion.
(ii) Except as provided in paragraph (c)(i) of this Section 8, the
Participant shall have, with respect to the shares of Restricted
Stock, all of the rights of a stockholder of the Corporation,
including the right to receive any dividends, unless the
Committee shall declare otherwise at the time of the Award.
Dividends paid in cash with respect to shares of
Restricted Stock shall not be subject to any
restrictions or subject to forfeiture. Dividends paid
in Stock of the Corporation or Stock received in
connection with a stock split with respect to
Restricted Stock shall be subject to the same
restrictions as on such Restricted Stock. Certificates
for shares of unrestricted Stock shall be delivered to
the Participant promptly after, and only after, the
period of forfeiture shall expire without forfeiture in
respect of such shares of Restricted Stock and the
repayment of any loans obtained to purchase the
Restricted Stock or to pay any taxes due with respect
to the Restricted Stock.
(iii)Subject to the provisions of the Restricted Stock Award Agreement
and this Section 8, upon termination of employment for any reason
during the Restriction Period, all shares still subject to
restriction (together with any price paid for such shares by the
Participant) shall be forfeited by the Participant, unless
otherwise determined by the Committee.
(iv) The Committee may, in its sole discretion, waive in whole or in
part any or all restrictions with respect to any Participant's
shares of Restricted Stock.
SECTION 9. Performance Awards
(a) Administration. Shares of Stock and/or a payment in cash may be
distributed under the Plan to an employee upon the attainment of
performance objectives, as a Performance Award. The Committee shall
determine the employees of the Corporation and its Subsidiaries to
whom Performance Awards are granted, the terms and conditions of the
performance objectives, the term of the performance period and the
value and form of the payment of the Performance Award.
(b) Performance Objectives. The Committee, in its sole discretion may
establish, under this Section 9, performance objectives either in
terms of Corporation-wide objectives or in terms of objectives that
are related to the specific performance of an employee or a bank, a
group, division, department, or Subsidiary within the Corporation in
which the Participant is employed. A minimum level of performance, at
the discretion of the Committee, may be established.
If, at the end of the performance period, the specified objectives
have been attained, the Participant is deemed to have fully earned
the Performance Award. If such performance objectives are only
partially attained, the Participant may be deemed by the Committee
to have partly earned the Performance Award and would become
eligible to receive a portion of the total Award, as determined by
the Committee. If a required minimum level of achievement has not
been met, as determined by the Committee, the Participant is
entitled to no portion of the Performance Award. If, at the end of
the performance period, performance exceeds the target, the
Participant, at the Committee's discretion, may receive a multiple
of the Performance Award. The Committee may adjust the payment of
Awards or the performance objectives if events occur or
circumstances arise which would cause a particular payment or set
of performance objectives to be inappropriate as a measure of
performance.
(c) Terms and Conditions. A Participant to whom a Performance Award has
been granted is given performance objectives to be reached over a
specified period, the "performance period." Generally this period
shall be not less than one year.
Any Participant granted a Performance Award pursuant to this
Section 9 who by reason of death (other than by suicide),
Disability or Retirement terminates employment before the end of
the performance period is entitled to receive a portion of any
earned Performance Award. The Committee, in its discretion, will
determine the amount of the Performance Award earned, if any, and
the time at which payment will be made.
A Participant who terminates employment for any other reason,
including death by suicide, forfeits all rights under the
Performance Award.
SECTION 10. Amendments and Termination
The Board may amend, alter, or discontinue the Plan at any time, but no
amendment, alteration, or discontinuation shall be made which affects an
existing Award under the Plan without the optionee's or Participant's consent.
If stockholder approval of this Plan is obtained, no amendment, alteration or
discontinuation shall be made by the Board which, without the approval of the
stockholders, would:
(a) increase the total number of shares reserved for the purpose of the
Plan, except as provided for in accordance with Section 4 of the Plan;
(b) decrease the option price of any Stock Option to less than 100% of the
Fair Market Value on the date of the granting of the option, except as
provided for in accordance with Section 4 of the Plan;
(c) change the Participants or class of Participants eligible to
participate in the Plan;
(d) extend the maximum option period under paragraph (b) of Section 6 of
the Plan; or
(e) materially increase in any other way the benefits accruing to
Participants.
The Committee may amend the terms of any Award or option theretofore granted,
prospectively or retroactively, but no such amendment shall affect an existing
Award under the Plan without the Participant's consent. The Committee may also
substitute new Stock Options for previously granted Stock Options, including
options granted under other plans applicable to the Participant, and previously
granted Stock Options having higher option prices.
SECTION 11. Change of Control
The following provisions shall apply in the event of a "Change of Control," as
defined in this Section 11:
(a) In the event of a "Change of Control" as defined in paragraph (c) of
this Section 11, the vesting of any outstanding Stock Options, Option
Price Adjustment Rights, Stock Appreciation Rights, Restricted Stock
or Performance Awards shall be accelerated so that all Awards not
previously exercisable and vested are fully exercisable and vested.
(b) If the employment of a Participant is terminated for any reason
following a Change of Control, any outstanding Stock Options, Option
Price Adjustment Rights, Stock Appreciation Rights, Restricted Stock
or Performance Awards granted to the Participant that are not fully
exercisable and vested shall become fully exercisable and vested as of
the date of such termination of employment and any obligations to pay
amounts to the Corporation or any Subsidiary in connection with an
Award shall be terminated as of the date of such termination of
employment.
(c) For purposes of this Section 11, a "Change of Control" means the
happening of any of the following:
(i) when any "person," as such term is used in Section 13(d) and
14(d) of the Exchange Act (other than the Corporation or a
Subsidiary or any Corporation employee benefit plan (including
its trustee)), is or becomes the "beneficial owner" (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly of
securities of the Corporation representing 20% or more of the
combined voting power of the Corporation's then outstanding
securities;
(ii) the occurrence of a transaction requiring stockholder approval
for the acquisition of the Corporation by an entity other than
the Corporation or a Subsidiary through purchase of assets, or by
merger, or otherwise;
(iii)the filing of an application with any regulatory authority having
jurisdiction over the ownership of the Corporation by any
"person," as defined in the preceding paragraph, to acquire 20%
or more of the combined voting power of the Corporation's then
outstanding securities; or
(iv) the occurrence of a "Triggering Event" as such term is defined in
the Rights Agreement dated April 20, 1989, by and between the
Corporation and Trust Company Bank, the provisions of which are
incorporated herein by this reference.
(d) For purposes of this Section 11, a "Change of Control" shall not
result from any transaction precipitated by the Corporation's
insolvency, appointment of a conservator, or determination by a
regulatory agency that the Corporation is insolvent, nor from any
transaction initiated by the Corporation in regard to creating a
holding company of which the Corporation would be a primary entity,
nor from any transaction initiated by the Corporation in regard to
converting from a publicly traded company to a privately held company.
SECTION 12. General Provisions
(a) All certificates for shares of Stock delivered under the Plan shall be
subject to such stock transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations, and other
requirements of the Commission, any stock exchange upon which the
Stock is then listed, and any applicable Federal or state securities
or other laws, and the Committee may cause a legend or legends to be
put on any such certificates to make appropriate reference to such
restrictions.
(b) Nothing set forth in this Plan shall prevent the Board from adopting
other or additional compensation arrangements, subject to stockholder
approval if such approval is required; and such arrangements may be
either generally applicable or applicable only in specific cases. The
Corporation and its Subsidiaries specifically reserve the right to
terminate (whether by dismissal, discharge, retirement or otherwise)
any Participant's employment with the Company or a Subsidiary at any
time at will. Neither the granting of an Award nor the adoption of the
Plan shall confer upon any employee of the Corporation or its
Subsidiaries any right to continued employment with the Corporation or
a Subsidiary, as the case may be, nor shall it interfere in any way
with the right of the Corporation or a Subsidiary to terminate the
employment of any of its employees at any time.
(c) Each Participant shall, no later than the date as of which the value
of an Award first becomes includable in the gross income of the
Participant for Federal income tax purposes, pay to the Corporation,
or make arrangements satisfactory to the Committee regarding payment
of, any Federal, state, or local taxes of any kind required by law to
be withheld with respect to the Award. The obligations of the
Corporation under the Plan shall be conditional on such payment or
arrangements and the Corporation (and, where applicable, its
Subsidiaries), shall, to the extent permitted by law, have the right
to deduct any such taxes from any payment of any kind otherwise due to
the Participant. A Participant may irrevocably elect to have the
withholding tax obligations or, in the case of all Awards hereunder
except Stock Options which have related Option Price Adjustment Rights
or Stock Appreciation Rights, if the Committee so determines, any
additional tax obligation with respect to any Awards hereunder
satisfied by (a) having the Corporation withhold shares of Stock
otherwise deliverable to the Participant with respect to the Award or
(b) delivering to the Corporation shares of unrestricted Stock;
provided, however, that if the Participant is an "officer" of the
Corporation within the meaning of Section 16 of the Exchange Act, no
such election shall be made (i) unless the Plan has been approved by
shareholders in accordance with Section 15 of the Plan and (ii) such
election is made either (a) during one of the "window" periods
described in section (c)(3)(iii) of Rule 16b-3 promulgated under the
Exchange Act, or (b) at least six months prior to the date income is
recognized with respect to the Award.
(d) No members of the Board or the Committee, nor any officer or employee
of the Corporation acting on behalf of the Board or the Committee,
shall be personally liable for any action, determination, or
interpretation taken or made in good faith with respect to the Plan,
and all members of the Board or the Committee and each and any officer
or employee of the Corporation acting on their behalf shall, to the
extent permitted by law, be fully indemnified and protected by the
Corporation in respect of any such action, determination or
interpretation provided such individual first gives the Corporation an
opportunity, at its own expense, to handle and defend any legal action
before such individual undertakes to handle and defend such legal
action.
(e) The existence of Stock Options, Option Price Adjustment Rights, Stock
Appreciation Rights, Restricted Stock and Performance Awards shall not
affect the right or power of the Corporation and its shareholders to
make adjustments, recapitalizations, reorganizations, or other changes
to the Corporation's capital structure or its business; issue bonds,
debentures, preferred or prior preference stocks affecting the
Corporation's Common Stock or the rights thereof; dissolve or
liquidate the Corporation, or sell or transfer any part of its assets
or business; or any other corporate act, whether of a similar
character or otherwise.
(f) The validity, interpretation, and administration of the Plan and of
any rules, regulations, determinations, or decisions made thereunder,
and the rights of any and all persons having or claiming to have any
interest therein or thereunder, shall be determined exclusively in
accordance with the laws of the State of Georgia, except where those
laws may be superseded by the laws of the United States of America.
Without limiting the generality of the foregoing, the period within
which any action in connection with the Plan must be commenced shall
be governed by the laws of the State of Georgia.
(g) The obligation of the Corporation to make payment of Awards in Stock
shall be subject to all applicable laws, rules and regulations, and to
such approvals by government agencies as may be required. The
Corporation shall be under no obligation to register under the
Securities Act of 1933, as amended from time to time ("1993 Act"), any
of the shares of Stock paid under the Plan. If the Stock paid under
the Plan may in certain circumstances be exempt from registration
under the 1933 Act, the Corporation may restrict the transfer of such
Stock in such manner as it deems advisable to ensure the availability
of any such exemption.
SECTION 13. Cash Awards and Loans
The Committee, in its sole discretion, at any time may authorize special cash
Awards to Participants to enable them to fund the exercise price of a Stock
Option or any taxes that must be paid or withheld upon the exercise of a Stock
Option, Option Price Adjustment Right or Stock Appreciation Right, to fund the
purchase price (if any) of Restricted Stock or any taxes that must be paid or
withheld with respect to Restricted Stock, or to fund any taxes that must be
paid or withheld with respect to any Performance Award. The Committee in its
sole discretion, at any time, may assist a Participant in obtaining a loan for
any funds required in connection with any aspect of the Plan, including without
limitation the exercise or purchase price of any Award and any taxes that must
be paid or withheld in connection with any Award.
SECTION 14. Accounting
It is the intent of the Board that the accounting expenses for any Awards under
this Plan to employees of Subsidiaries be charged to the Subsidiaries employing
such employees and not to the Corporation. The Board of Directors and the
Committee shall have the right to adopt any policies and procedures required in
order to carry out this intent.
SECTION 15. Effective Date of Plan
The Plan shall become effective upon the earlier of its adoption by the Board of
Directors or by the Executive Committee of the Board of Directors; provided,
however, that Incentive Stock Options awarded hereunder shall be automatically
converted into Non-Qualified Stock Options if shareholder approval of the Plan
is not obtained within twelve months of the Plan's effective date.
SECTION 16. Term of Plan
No Stock Option, Option Price Adjustment Right, Stock Appreciation Right,
Restricted Stock or Performance Award shall be granted pursuant to the Plan on
or after the tenth anniversary of the effective date of the Plan, but Awards
theretofore granted may extend beyond that date.
SECTION 17. Execution
IN WITNESS WHEREOF, the Corporation has caused this Plan to be signed by its
duly authorized officers effective as of this 1st day of February, 2000.
SYNOVUS FINANCIAL CORP.
By: /s/G. Sanders Griffith, III
Title: Senior Executive Vice President
