<PAGE> 1
SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the registrant / /
Filed by a party other than the registrant / /
Check the appropriate box:
/ / Preliminary proxy statement
/ / Definitive proxy statement
/ / Definitive additional materials
/ / Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12
HARTE-HANKS COMMUNICATIONS, INC.
- - - - - --------------------------------------------------------------------------------
(Name of Registrant as Specified in Its Charter)
BOARD OF DIRECTORS OF HARTE-HANKS COMMUNICATIONS, INC.
- - - - - --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement)
Payment of filing fee (Check the appropriate box):
/ / $125 per Exchange Act Rule 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(j)(2).
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and
0-11.
(1) Title of each class of securities to which transaction applies:
- - - - - --------------------------------------------------------------------------------
(2) Aggregate number of securities to which transactions applies:
- - - - - --------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11:(1)
- - - - - --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
- - - - - --------------------------------------------------------------------------------
/ / Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the form or schedule and the date of its filing.
(1) Amount previously paid:
- - - - - --------------------------------------------------------------------------------
(2) Form, schedule or registration statement no.:
- - - - - --------------------------------------------------------------------------------
(3) Filing party:
- - - - - --------------------------------------------------------------------------------
(4) Date filed:
- - - - - --------------------------------------------------------------------------------
- - - - - ---------------
(1) Set forth the amount on which the filing fee is calculated and state how
it was determined.
<PAGE> 2
HARTE-HANKS COMMUNICATIONS, INC.
200 CONCORD PLAZA DRIVE, SUITE 800
SAN ANTONIO, TEXAS 78216
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD MAY 6, 1994
As a stockholder of Harte-Hanks Communications, Inc., you are hereby given
notice of and invited to attend in person or by proxy the Annual Meeting of
Stockholders of the Company to be held at the offices of the Company, 200
Concord Plaza Drive, Suite 800, San Antonio, Texas, on Friday, May 6, 1994, at
10:00 a.m. local time, for the following purposes:
1. To elect two Class I directors, each for a three-year term;
2. To approve the Harte-Hanks Communications, Inc. 1994 Employee Stock
Purchase Plan; and
3. To transact such other business as may properly come before the
meeting and any adjournment thereof.
The Board of Directors has fixed the close of business on March 15, 1994 as
the record date for the determination of stockholders entitled to notice of and
to vote at such meeting and any adjournment thereof.
YOU ARE CORDIALLY INVITED TO ATTEND THE MEETING. HOWEVER, WHETHER OR NOT
YOU EXPECT TO ATTEND THE MEETING, TO ASSURE YOUR SHARES ARE REPRESENTED AT THE
MEETING, PLEASE DATE, EXECUTE AND MAIL PROMPTLY THE ENCLOSED PROXY IN THE
ENCLOSED STAMPED ENVELOPE FOR WHICH NO ADDITIONAL POSTAGE IS REQUIRED IF MAILED
IN THE UNITED STATES.
By Order of the Board of Directors,
DONALD R. CREWS
Senior Vice President, Legal and
Secretary
San Antonio, Texas
March 30, 1994
YOUR VOTE IS IMPORTANT.
PLEASE EXECUTE AND RETURN PROMPTLY THE
ENCLOSED PROXY CARD IN THE ENVELOPE PROVIDED.
<PAGE> 3
HARTE-HANKS COMMUNICATIONS, INC.
200 CONCORD PLAZA DRIVE, SUITE 800
SAN ANTONIO, TEXAS 78216
---------------------
PROXY STATEMENT
---------------------
FOR THE ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD MAY 6, 1994
---------------------
This Proxy Statement is furnished to stockholders of Harte-Hanks
Communications, Inc. for use at the 1994 Annual Meeting of Stockholders to be
held at the date, time and place and for the purposes set forth in the
accompanying Notice of Annual Meeting of Stockholders, or at any adjournment
thereof. The enclosed proxy is solicited on behalf of the Board of Directors of
the Company. A stockholder executing the accompanying proxy has the right to
revoke it at any time prior to the voting thereof by notifying the Secretary of
the Company in writing, executing a subsequent proxy or attending the meeting
and voting in person. Unless a contrary choice is so indicated, all duly
executed proxies received by the Company will be voted in accordance with the
instructions set forth on the proxy card. The record date for stockholders
entitled to vote at the Annual Meeting is the close of business on March 15,
1994. The approximate date on which this Proxy Statement and the enclosed proxy
are first being sent or given to stockholders is March 30, 1994.
VOTING PROCEDURES
The accompanying proxy card is designed to permit each stockholder of
record at the close of business on the record date, March 15, 1994, to vote in
the election of Class I directors and on the proposals described in this Proxy
Statement. The proxy card provides space for a stockholder (i) to vote in favor
of or to withhold voting for the nominees for the Class I Directors, (ii) to
vote for or against any proposal to be considered at the Annual Meeting or (iii)
to abstain from voting on any proposal other than election of Class I directors
if the stockholder chooses to do so. The election of Class I directors will be
decided by a plurality of the votes cast. All other matters will be determined
by a majority of the votes cast.
The holders of a majority of all of the shares of stock entitled to vote at
the Annual Meeting, present in person or by proxy, will constitute a quorum for
the transaction of business at the Annual Meeting. If a quorum should not be
present, the Annual Meeting may be adjourned from time to time until a quorum is
obtained. Shares as to which authority to vote has been withheld with respect to
the election of any nominee for director will not be counted as a vote for such
nominee. Abstentions and broker nonvotes are counted for purposes of determining
the presence or absence of a quorum for the transaction of business. Abstentions
are counted in tabulations of the votes cast on proposals presented to
stockholders to determine the total number of votes cast. Abstentions are not
counted as votes for or against any such proposals. Broker nonvotes are not
counted as votes cast for purposes of determining whether a proposal has been
approved.
Stockholders are urged to sign the enclosed proxy and return it promptly.
When a signed card is returned with choices specified with respect to voting
matters, the shares represented are voted by the proxies designated on the proxy
card in accordance with the stockholder's instructions. The proxies for the
stockholders are Larry Franklin, Houston H. Harte and Andrew B. Shelton.
If a signed proxy card is returned and the stockholder has made no
specifications with respect to voting matters, the shares will be voted for the
election of the two nominees for Class I director and in favor of all the
proposals described in this Proxy Statement and, at the discretion of the
proxies, on any other matter that may properly come before the Annual Meeting or
any adjournment.
The total outstanding capital stock of the Company as of March 15, 1994
consisted of 18,158,400 shares of Common Stock. Each share of Common Stock is
entitled to one vote.
<PAGE> 4
MATTERS TO BE BROUGHT BEFORE THE MEETING
PROPOSAL ONE -- ELECTION OF CLASS I DIRECTORS
The current number of members of the Board of Directors is seven. The Board
of Directors is divided into three classes, each of which serves for a
three-year term. One class of directors is elected each year. The term of the
Company's Class I directors will expire at the Annual Meeting. The Class I
directors elected in 1994 will serve for a term of three years which expires at
the Annual Meeting of Stockholders in 1997 or when their successors are elected
and qualified. The election of directors will be decided by a plurality vote of
the votes cast in writing.
The nominees for the Class I directors are Dr. Peter T. Flawn and
Christopher M. Harte. Both nominees are members of the present Board of
Directors. The Board believes that both nominees will be available and able to
serve as directors. If either nominee is unable to serve, the shares represented
by all valid proxies will be voted for the election of such substitute as the
Board may recommend, the Board may reduce the number of directors to eliminate
the vacancy consistent with the requirement to maintain nearly equal classes, or
the Board may fill the vacancy at a later date after selecting an appropriate
nominee. Information with respect to the nominees is set forth in the section of
this Proxy Statement entitled "Management -- Directors and Executive Officers."
THE BOARD OF DIRECTORS URGES STOCKHOLDERS TO VOTE "FOR"
EACH OF THE NOMINEES FOR DIRECTOR SET FORTH ABOVE.
PROPOSAL TWO -- APPROVAL OF THE HARTE-HANKS COMMUNICATIONS, INC.
1994 EMPLOYEE STOCK PURCHASE PLAN
On January 24, 1994, the Board of Directors approved the Harte-Hanks
Communications, Inc. 1994 Employee Stock Purchase Plan (the "Plan") and directed
that it be submitted to stockholders at the Annual Meeting for approval. The
purpose of the Plan is to secure for the Company and its stockholders the
benefits of the incentive inherent in the ownership of the Company's Common
Stock by the employees of the Company. Up to 300,000 shares of Common Stock may
be issued under the Plan. If the right of an employee to purchase reserved
shares is not exercised or terminates, such shares will again become available
under the Plan. Shares issued under the Plan may be authorized and previously
unissued shares or previously issued shares that have been reacquired by the
Company. The Plan provides that appropriate adjustments will be made in the
aggregate number of shares subject to the Plan in the case of stock dividends,
stock splits or other changes affecting the Common Stock.
The Plan is intended to comply with the provisions of Section 423 of the
Internal Revenue Code of 1986 (the "Code"). The full text of the Plan will be
provided, without charge, upon the request of any person to whom a copy of this
Proxy Statement is delivered. The following summary of certain provisions of the
Plan is qualified in its entirety by reference to text of the Plan.
Approval of the Plan will require the affirmative vote of a majority of the
votes cast.
SUMMARY OF PROVISIONS OF THE PLAN
All employees of the Company and its subsidiaries will be eligible to
participate except officers of the Company, persons becoming employees after the
June 30 immediately preceding the beginning of each Plan Year (August 1 through
the following July 31) with respect to shares sold during that Plan Year, part
time employees (as defined), and employees who own five percent or more of the
outstanding Common Stock of the Company.
The Company will sell Common Stock on quarterly "investment dates" to
eligible employees who have elected to authorize payroll deductions from their
salaries. The amount of such payroll deductions (in any whole percent from 1%
through 10%) may not exceed 10% of the employee's base compensation (as
defined).
2
<PAGE> 5
The purchase price is 85% of the fair market value of the Common Stock on the
investment date. The number of shares that each participating employee may
purchase is determined by dividing the amounts accumulated in his or her payroll
deduction account on any investment date by 85% of the fair market value of the
Common Stock on that date. A participant may not in any year purchase Common
Stock valued at more than $25,000. A participating employee may at any time
withdraw the balance accumulated in his or her payroll deduction account and
thereby cease to be a participating employee until the following anniversary
date of the Plan. A participating employee may also decrease his or her payroll
deduction, but not more than once a year and not to less than 1% per payroll
deduction.
The Plan will be administered by a Committee appointed by the Board of
Directors. The Committee has authority to interpret the Plan, prescribe, amend
and rescind rules and regulations relating to it, and to make all other
determinations necessary or advisable in administering the Plan, all of which
determinations are final and binding. Amendments may be made to the Plan from
time to time by the Board of Directors, except no amendment can be made without
stockholder approval if its effect would be to (a) increase or decrease the
number of shares reserved for issuance under the Plan or (b) alter the
eligibility criteria for participation in the Plan.
The Plan will terminate on any investment date when participating employees
become entitled to purchase a number of shares greater than the number of
reserved shares remaining available for purchase or at the end of any Plan Year
if determined by the Board of Directors.
FEDERAL TAX CONSEQUENCES
The Plan, and the right of participants to make purchases thereunder, is
intended to qualify under the provisions of Sections 421 and 423 of the Code.
Under these provisions, no income will be taxable to the participant at the time
of his or her annual election to enroll in the Plan, when payroll deductions are
made, or when shares are purchased. Upon disposition of the shares, the
participant will be subject to tax and the amount of tax will depend upon the
holding period. If shares are disposed of by the participant more than two years
after the date on which the shares were purchased, or the participant dies while
owning the shares, the lesser of (a) the excess of the fair market value of the
shares at the time of such disposition or death over the participant's purchase
price or (b) the excess of the fair market value of the shares at the time the
shares were purchased over the participant's purchase price, will be treated as
ordinary income, and any further gain will be treated as long-term capital gain.
If the shares are disposed of before the expiration of this holding period, the
excess of the fair market value of the shares measured as of the purchase date
over the participant's purchase price will be treated as ordinary income, and
any further gains will be long-term or short-term capital gains, depending on
the holding period. The Company is not entitled to a deduction for amounts taxed
as ordinary income to a participant except to the extent of ordinary income
reported by participants upon disposition of shares within two years from the
date of purchase.
The foregoing is only a summary of the effect of federal income taxation
upon the participant and the Company with respect to shares purchased under the
Plan and does not purport to be complete. The foregoing does not discuss the
income tax laws of any municipality, state, or foreign country in which a
participant may reside.
THE BOARD OF DIRECTORS URGES STOCKHOLDERS TO VOTE "FOR"
THE APPROVAL OF THE COMPANY'S EMPLOYEE STOCK PURCHASE PLAN.
3
<PAGE> 6
SECURITY OWNERSHIP OF MANAGEMENT
AND PRINCIPAL STOCKHOLDERS
The following table sets forth, as of March 15, 1994, the beneficial
ownership of each current director, each nominee for director, each executive
officer included in the Summary Compensation Table, the directors and executive
officers as a group, and each stockholder known to management to own
beneficially more than 5% of the Company's Common Stock.
<TABLE>
<CAPTION>
NAME AND ADDRESS NUMBER OF SHARES PERCENT OF
OF BENEFICIAL OWNER(1) OF COMMON STOCK CLASS
- - - - - ------------------------------------------------------------------ ---------------- ----------
<S> <C> <C>
Houston H. Harte(2)............................................... 4,359,934 24.0%
Andrew B. Shelton................................................. 3,089,332 17.0
Edward H. Harte................................................... 2,110,332 11.6
The Goldman Sachs Group, L.P.(3).................................. 1,428,571 7.9
David L. Sinak(4)................................................. 1,250,002 6.9
Train, Smith Counsel(5)........................................... 1,243,400 6.8
Larry Franklin(6)................................................. 1,160,100 6.4
Christopher M. Harte(7)........................................... 277,778 1.5
Donald R. Crews(8)................................................ 189,500 1.0
Richard M. Hochhauser(9).......................................... 140,000 *
Harry J. Buckel(10)............................................... 63,600 *
Michael J. Conly(11).............................................. 53,700 *
Dr. Peter T. Flawn................................................ 5,000 *
James L. Johnson.................................................. 1,000 *
All Executive Officers and Directors as a Group (13
persons)(12).................................................... 11,324,526 62.4%
</TABLE>
- - - - - ---------------
* Less than 1%.
(1) The address of The Goldman Sachs Group, L.P. is c/o Goldman, Sachs & Co.,
85 Broad Street, New York, New York 10004. The address of Train, Smith
Counsel is 667 Madison Avenue, New York, New York 10021. The address of
David L. Sinak is c/o Hughes & Luce, L.L.P., 1717 Main Street, Suite 2800,
Dallas, Texas 75201. The address of each other beneficial owner is c/o
Harte-Hanks Communications, Inc., 200 Concord Plaza, Suite 800, San
Antonio, Texas 78216.
(2) Includes 750,000 shares in the aggregate owned by three trusts for which
Mr. Harte serves as co-trustee with David L. Sinak and 250,000 shares owned
by a trust for which Mr. Harte serves as a co-trustee with David L. Sinak
and Christopher M. Harte, as to which Mr. Harte holds shared voting and
dispositive power. Mr. Harte does not have any pecuniary interest in the
trusts.
(3) Represents 1,428,571 shares of Common Stock that The Goldman Sachs Group,
L.P., and certain limited partnerships of which affiliates of The Goldman
Sachs Group, L.P. are the general partner or the managing general partner,
have the right to acquire upon conversion of the Company's outstanding
6 1/4% Convertible Notes due 2002, which Common Stock for purposes of rules
of the Securities and Exchange Commission may be considered to be
beneficially owned by The Goldman Sachs Group, L.P.
(4) Represents 1,250,002 shares owned by 13 trusts for which Mr. Sinak serves
as co-trustee and holds shared voting and dispositive power. Mr. Sinak has
no pecuniary interest in the trusts.
(5) Train, Smith Counsel has shared voting power with respect to 941,900 shares
and shared dispositive power with respect to 1,243,400 shares. Information
with respect to Train, Smith Counsel is based on a Schedule 13G filing
dated February 10, 1994.
(6) Includes 20,000 shares that may be acquired upon the exercise of options
exercisable within the next 60 days, 240,000 shares owned by four trusts
for which Mr. Franklin serves as co-trustee and holds shared voting and
dispositive power, and 40,000 shares held in trust for his children as to
which Mr. Franklin holds sole voting and dispositive power. Mr. Franklin
has no pecuniary interest in the trusts.
4
<PAGE> 7
(7) Represents 250,000 shares owned by a trust for which Mr. Harte serves as
co-trustee with David L. Sinak and Houston H. Harte and 27,778 shares owned
by a trust for which Mr. Harte serves as a co-trustee with David L. Sinak,
as to which Mr. Harte holds shared voting and dispositive power.
(8) Includes 65,500 shares that may be acquired upon the exercise of options
exercisable within the next 60 days.
(9) Includes 46,000 shares that may be acquired upon the exercise of options
exercisable within the next 60 days.
(10) Includes 42,000 shares that may be acquired upon the exercise of options
exercisable within the next 60 days.
(11) Includes 27,500 shares that may be acquired upon the exercise of options
exercisable within the next 60 days.
(12) Includes 264,250 shares that may be acquired upon the exercise of options
exercisable within the next 60 days and 1,307,778 shares owned by various
trusts for which officers or directors serve as trustee but have no
pecuniary interest.
MANAGEMENT
DIRECTORS AND EXECUTIVE OFFICERS
The following table sets forth certain information about the current
directors and executive officers of the Company. Each of the executive officers
has held his position with the Company, or a similar position with the Company,
for at least the past five years.
<TABLE>
<CAPTION>
NAME AGE POSITION WITH COMPANY
- - - - - ------------------------- --- ------------------------------------------------------
<S> <C> <C>
Dr. Peter T. Flawn 68 Director (Class I)
Larry Franklin 51 Director (Class II), President and Chief Executive
Officer
Christopher M. Harte 46 Director (Class I)
Edward H. Harte 71 Director (Class II)
Houston H. Harte 67 Chairman, Board of Directors (Class III)
James L. Johnson 66 Director (Class II)
Andrew B. Shelton 79 Director (Class III); Publisher, Abilene Reporter-News
Harry J. Buckel 50 Senior Vice President; President, Harte-Hanks Shoppers
Michael J. Conly 42 Senior Vice President; President, Harte-Hanks
Television
Donald R. Crews 50 Senior Vice President, Legal; Secretary
Richard M. Hochhauser 49 Senior Vice President; President, Harte-Hanks Direct
Marketing
Richard L. Ritchie 47 Senior Vice President, Finance; Chief Financial and
Accounting Officer
Stephen W. Sullivan 47 Senior Vice President; President, Harte-Hanks
Newspapers
</TABLE>
Class I directors are to be elected at the Annual Meeting. The term of
Class II directors expires at the 1995 Annual Meeting of Stockholders and the
term of Class III directors expires at the 1996 Annual Meeting of Stockholders.
Dr. Peter T. Flawn, a director of the Company since 1985, is President
Emeritus of the University of Texas at Austin. Dr. Flawn is Chairman of the
Audit Committee of the Board of Directors and also serves as a director of
Input/Output, Inc., Global Marine, Inc. and Tenneco, Inc.
Larry Franklin has served as President and Chief Executive Officer of the
Company since 1991 and as a director of the Company since 1974. Mr. Franklin has
held numerous positions since joining the Company in 1971, including Chief
Financial Officer and President, Harte-Hanks Newspapers.
5
<PAGE> 8
Christopher M. Harte, a director of the Company since May 1993, has served
as president of the Portland Press Herald and Maine Sunday Telegram, published
by Guy Gannett Publishing Co., since June 1992. Mr. Harte is the son of Edward
H. Harte and the grandson of the late Houston Harte, co-founder of the Company.
Prior to becoming president of the Portland newspapers, Mr. Harte spent nine
years with Knight-Ridder Newspapers, during which time he served as president
and publisher of two newspapers and in other positions.
Edward H. Harte has served as a director of the Company since 1952. Prior
to his retirement in 1987, he served as Publisher of the Corpus Christi
Caller-Times since 1962. Mr. Harte is the son of the late Houston Harte.
Houston H. Harte has served as a director of the Company since 1952 and as
Chairman of the Board of Directors since 1972. Mr. Harte is also the son of the
late Houston Harte.
James L. Johnson, a director of the Company since January 1994, is Chairman
Emeritus of GTE Corporation. Mr. Johnson serves as a director of British
Columbia Telephone Co., Compania Anonima Nacional Telefonos de Venezuela, Contel
Cellular Inc., GFC Financial Corp., GTE Corporation, Mutual of New York and
Valero Energy Corporation.
Andrew B. Shelton has served as director of the Company since 1948 and as
Publisher of the Abilene Reporter-News since 1964.
Section 16(a) of the Exchange Act requires the Company's officers and
directors, and persons who own more than 10% of a registered class of the
Company's equity securities to file reports of ownership and changes in
ownership with the SEC and the New York Stock Exchange. Officers, directors and
greater than 10% stockholders are required by certain regulations to furnish the
Company with copies of all Section 16(a) forms they file.
Based solely on its review of the copies of such forms received by it, the
Company believes that its officers, directors and greater than 10% beneficial
owners have complied with all applicable filing requirements with respect to the
Company's equity securities.
MEETING ATTENDANCE AND COMMITTEES OF THE BOARD
The Board of Directors held five meetings during 1993, and each member of
the Board participated in at least 75% of all Board and committee meetings held
during the period that he served as a director and/or committee member. The
Board of Directors has established an audit committee and a compensation
committee. The functions of these committees and their current members are
described below.
Audit Committee. The Audit Committee currently consists of Dr. Peter T.
Flawn (Chairman) and James L. Johnson. The Audit Committee, which met three
times during 1993, is responsible for monitoring the Company's internal audit
function and its internal accounting controls, recommending to the Board of
Directors the selection of independent auditors, considering the range of audit
and non-audit fees and monitoring and reviewing the activities of the
independent auditors.
Compensation Committee. Prior to the public offering of Common Stock in
November 1993, compensation matters were addressed by the entire Board of
Directors. The Compensation Committee was established on January 24, 1994. The
Compensation Committee is comprised of James L. Johnson (Chairman) and Dr. Peter
T. Flawn, both of whom are disinterested in accordance with Rule 16b-3 of the
Exchange Act. The Compensation Committee recommends salary amounts for the
Company's chief executive officer and other executive officers and makes the
final determination regarding bonus arrangements and awards of stock options to
such persons.
The Board of Directors does not have a standing nominating committee or any
other committee performing a similar function. The function customarily
attributable to a nominating committee is performed by the Board of Directors as
a whole.
6
<PAGE> 9
EXECUTIVE COMPENSATION AND OTHER INFORMATION
SUMMARY COMPENSATION TABLE
The following table sets forth certain information regarding compensation
paid during each of the last three years to the Company's Chief Executive
Officer and each of the Company's four other most highly compensated executive
officers (based on total annual salary and bonus for 1993).
<TABLE>
<CAPTION>
ANNUAL
COMPENSATION ALL
NAME AND PRINCIPAL --------------------- OPTIONS OTHER
POSITION YEAR SALARY BONUS GRANTED COMPENSATION(1)
- - - - - ------------------------- ----- -------- -------- ------- ---------------
<S> <C> <C> <C> <C> <C>
Larry Franklin 1993 $650,000 $ 91,000 50,000 $14,300
President and Chief 1992 650,000 341,250 40,000 14,083
Executive Officer 1991 650,000 251,875 40,000 14,300
Richard M. Hochhauser 1993 $285,000 $107,000 55,000 $ 1,799
Senior Vice President; 1992 262,000 162,702 23,000 1,746
President, Harte-Hanks 1991 262,000 137,550 46,000 1,441
Direct Marketing
Michael J. Conly 1993 $225,000 $115,200 45,000 $ 1,799
Senior Vice President; 1992 208,000 96,620 17,500 1,746
President, Harte-Hanks 1991 208,000 146,338 39,500 1,695
Television
Harry J. Buckel 1993 $285,000 $ 39,330 41,000 $ 1,746
Senior Vice President; 1992 275,000 71,225 19,000 1,746
President, Harte-Hanks 1991 275,000 103,125 56,000 1,695
Shoppers
Donald R. Crews 1993 $270,000 $ 48,600 37,000 $ 1,350
Senior Vice President, 1992 277,500 145,950 15,500 1,395
Legal and Secretary 1991 300,000 131,250 33,500 1,200
</TABLE>
- - - - - ---------------
(1) Consisted of matching contributions made by the Company on behalf of the
respective individual under the Company's 401(k) plan and $13,000 in
premiums paid annually by the Company on a split-dollar policy insuring the
life of Larry Franklin.
7
<PAGE> 10
OPTION GRANTS DURING 1993
The following table sets forth certain information concerning options to
purchase Common Stock granted in 1993 to the five individuals named in the
Summary Compensation Table.
<TABLE>
<CAPTION>
% OF TOTAL POTENTIAL
OPTIONS STOCK
GRANTED TO MARKET APPRECIATION
OPTIONS EMPLOYEES IN EXERCISE PRICE AT EXPIRATION ------------------------------
NAME GRANTED 1993 PRICE GRANT(1) DATE 0% 63%(2) 159%(2)
- - - - - ---------------------------- ---------- ------------ -------- -------- ------------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Larry Franklin.............. 25,000(3) 4.0% $10.00 $10.00 January 2003 $ 0 $157,500 $397,500
25,000(4) 4.0 1.00 10.00 January 2003 225,000 382,500 622,500
Richard M. Hochhauser....... 15,000(3) 2.4 10.00 10.00 January 2003 0 94,500 238,500
30,000(3) 4.9 10.00 10.00 July 2003 0 189,000 477,000
10,000(4) 1.6 1.00 10.00 January 2003 90,000 153,000 249,000
Michael J. Conly............ 12,000(3) 2.0 10.00 10.00 January 2003 0 75,600 190,800
25,000(3) 4.0 10.00 10.00 July 2003 0 157,500 397,500
8,000(4) 1.3 1.00 10.00 January 2003 72,000 122,400 199,200
Harry J. Buckel............. 12,000(3) 2.0 10.00 10.00 January 2003 0 75,600 190,800
20,000(3) 3.3 10.00 10.00 July 2003 0 126,000 318,000
9,000(4) 1.5 1.00 10.00 January 2003 81,000 137,700 224,100
Donald R. Crews............. 7,000(3) 1.1 10.00 10.00 January 2003 0 44,100 111,300
22,000(3) 3.6 10.00 10.00 July 2003 0 138,600 349,800
8,000(4) 1.3 1.00 10.00 January 2003 72,000 122,400 199,250
</TABLE>
- - - - - ---------------
(1) Prior to the creation of a public market for the Common Stock, market price,
for the purposes of granting stock options and making repurchase offers to
stockholders, was determined by the Board of Directors.
(2) Assumed annual compounded rates of stock price appreciation of 5% (63%) and
10% (159%) over the term of the grant.
(3) Options are exercisable only after the fifth, and prior to the tenth,
anniversary of the date of grant.
(4) Performance options have been granted at exercise prices of $1.00 per share.
The performance options are exercisable only after the third, and prior to
the tenth, anniversary of the date of grant. The extent to which the
options become exercisable depends upon the extent to which the Company
achieves certain goals that are established at the time the options are
granted.
AGGREGATED OPTION EXERCISES IN 1993 AND 1993 YEAR-END OPTION VALUES
The following table sets forth certain information concerning options to
purchase Common Stock by the five individuals named in the Summary Compensation
Table. No stock options were exercised during 1993 by any of the individuals
named in the table.
<TABLE>
<CAPTION>
VALUE OF
NUMBER OF UNEXERCISED
UNEXERCISED IN-THE-MONEY
OPTIONS AT OPTIONS AT
DECEMBER 31, 1993 DECEMBER 31, 1993(1)
--------------------------- ---------------------------
NAME EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE
- - - - - ------------------------------------------------ ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C>
Larry Franklin.................................. 20,000 130,000 $ 215,000 $ 1,460,000
Richard M. Hochhauser........................... 26,000 144,000 332,000 1,650,500
Michael J. Conly................................ 15,000 113,000 197,500 1,286,750
Harry J. Buckel................................. 24,000 134,000 310,000 1,535,000
Donald R. Crews................................. 50,000 100,000 672,500 1,167,000
</TABLE>
- - - - - ---------------
(1) The value is the amount by which the market value of the underlying stock at
December 31, 1993 ($19.50) exceeds the aggregate exercise prices of the
options.
8
<PAGE> 11
RETIREMENT BENEFIT PLAN
In addition to a defined benefit pension plan which is qualified under
Section 401 of the Code, the Company has established for certain individuals an
unfunded, non-qualified pension restoration plan. The annual pension benefit
under the plans, taken together, is largely determined by the number of years of
employment multiplied by a percentage of the participant's final average
earnings (earnings during the highest five consecutive years). The Code places
certain limitations on the amount of pension benefits that may be paid under
qualified plans. Any benefits in excess of those limitations payable to
participants in the pension restoration plan will be paid under that plan.
The table below may be used to calculate the approximate annual benefits
payable at retirement at age 65 under the Company's defined benefit pension plan
and pension restoration plan to individuals in specified remuneration and
years-of-service classifications. The benefits are not subject to any reduction
for social security benefits or other offset amounts.
<TABLE>
<CAPTION>
HIGHEST 5 YEAR YEARS OF CREDITED SERVICE
AVERAGE ------------------------------------------------------------
REMUNERATION 15 20 25 30 35
-------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
$150,000 $ 34,755 $ 46,339 $ 57,924 $ 69,509 $ 81,094
250,000 59,505 79,339 99,174 119,009 138,844
350,000 84,255 112,339 140,424 168,509 196,594
450,000 109,005 145,339 181,674 218,009 254,344
550,000 133,755 178,339 222,924 267,509 312,094
650,000 158,505 211,339 264,174 317,009 369,844
750,000 183,255 244,339 305,424 366,509 427,594
850,000 208,005 277,339 346,674 416,009 485,344
950,000 232,755 310,339 387,924 465,509 543,094
</TABLE>
The compensation included in the Summary Compensation Table under salary
and bonuses qualifies as remuneration for purposes of the Company's defined
benefit pension plan and pension restoration plan, except that there are limits
on the amounts of bonuses taken into consideration under the pension restoration
plan. For purposes of the plans, the officers named in the Summary Compensation
Table have the following years of service: Mr. Franklin: 22 years; Mr. Buckel:
15 years; Mr. Conly: 14 years; Mr. Crews: 11 years; and Mr. Hochhauser: 18
years.
COMPENSATION OF DIRECTORS
Directors who are not employees or otherwise affiliates of the Company
receive annual director's fees of $47,000 and are reimbursed for certain out of
pocket expenses. Directors who are employees or are otherwise affiliates of the
Company do not receive director's fees. During 1993, Dr. Peter T. Flawn, a
director of the Company but not an officer, received director's fees of $47,000.
SEVERANCE AGREEMENTS
In July 1993, the Company entered into a severance agreement with Larry
Franklin. If Mr. Franklin is terminated from his position as President and Chief
Executive Officer of the Company other than for "cause" (as defined) he will be
entitled to severance compensation in a lump sum cash amount equal to 200% of
the sum of (A) the annual base salary in effect just prior to termination, plus
(B) the average of the bonus or incentive compensation for the two fiscal years
preceding the termination. In addition to the cash compensation, upon Mr.
Franklin's termination, the Company will continue to provide certain benefits
for a two year period and all options previously granted to Mr. Franklin will
immediately vest and become fully exercisable.
In July 1993, the Company also entered into severance agreements with Harry
J. Buckel, Michael J. Conly, Donald R. Crews, Richard M. Hochhauser, Richard L.
Ritchie and Stephen W. Sullivan. If any of the above executives is terminated,
other than for "cause," after a "change in control" (as defined) of the Company,
the executive will be entitled to severance compensation in a lump sum cash
amount equal to 200%
9
<PAGE> 12
of the sum of (A) the annual base salary in effect immediately prior to the
change in control, plus (B) the average of the bonus or incentive compensation
for the two fiscal years preceding the change in control. In addition, a
terminated executive will receive a cash payment sufficient to cover health
insurance premiums for a period of 18 months. Upon a change in control, all
options previously granted to the executive will immediately vest and become
fully exercisable.
In no event will the Company be required to make to any of the foregoing
executives any payment under such agreements that would result, in the opinion
of tax counsel, in an "excess parachute payment" within the meaning of Section
280G of the Code and the imposition of an excise tax under Section 4999 of the
Code.
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
During 1993, the Board of Directors was responsible for determining
executive compensation. During such period, Larry Franklin was also a member of
the Board of Directors and therefore participated in deliberations concerning
the compensation of all executive officers other than himself. On January 24,
1994, the Board of Directors appointed James L. Johnson (Chairman) and Dr. Peter
T. Flawn to serve as the Compensation Committee of the Board of Directors.
REPORT OF THE BOARD OF DIRECTORS ON EXECUTIVE COMPENSATION
Prior to the Company's initial public offering of Common Stock in November
1993, the Board of Directors had responsibility for determining executive
compensation. Mr. Johnson was not a member of the Board of Directors in 1993 and
accordingly did not participate in any of the Board's compensation decisions.
The Compensation Committee was established on January 24, 1994. The Compensation
Committee is responsible for recommending to the full Board of Directors salary
amounts for the Company's Chief Executive Officer and other executive officers
and making the final determination regarding bonus arrangements and awards of
stock options to such persons.
Compensation to executives is designed to attract and retain superior
talent, to motivate the performance of executives in support of the achievement
of the Company's strategic financial and operating performance objectives, and
to reward performance that meets this standard. The Company is engaged in highly
competitive businesses and must attract and retain qualified executives in order
to be successful. In 1993, executive compensation was comprised of the following
elements:
BASE SALARY. The base salary for the Chief Executive Officer and the
other executive officers of the Company was determined after review of
publicly available information concerning the base salaries of executives
with similar responsibilities in companies engaged in businesses similar to
the Company's core businesses (which may include, but are not necessarily
the same as, those included in the Peer Group Index) and the
responsibilities of each executive officer, particularly in view of the
fact that the decentralized management philosophy of the Company relies
heavily on the direct action of the Company's executives in pursuit of
Company goals.
ANNUAL INCENTIVE COMPENSATION. Year-end cash bonuses are designed to
motivate the Chief Executive Officer and the other executive officers to
achieve specific annual financial and other goals based on the strategic
financial and operating performance objectives of the Company overall, as
well as each core business. In conjunction with the Board's review of the
strategic and operating plans of the Company and each core business at the
beginning of 1993, the Board established incremental target performance
levels for each executive officer based on the revenue growth, operating
profit and, to a lesser extent, total quality management goals of the
Company and, if the executive was responsible for a core business, the core
business. Bonus amounts were paid to each executive based on the target
performance level reached.
STOCK OPTION PLAN. The 1991 Stock Option Plan forms the basis of the
Company's long-term incentive plan for executives. The Board and the
Committee believe that a significant portion of executive compensation
should be dependent on value created for the stockholders. Stock options
are generally granted annually. In 1993, certain options were granted at
fair market value on the date of grant and
10
<PAGE> 13
become exercisable five years from such date if the option holder is still
employed. Other options were granted below fair market value but only
become exercisable three years after their date of grant and then only to a
limited degree unless the Company has reached specific financial
performance levels established at the time of grant. In selecting
recipients for option grants and in determining the size of such grants,
the Board considered various factors such as the overall performance of the
Company and the recipient. In addition, stock options were awarded prior to
the Company's initial public offering in order to encourage management
stability over the next several years.
Executives also receive benefits typically offered to executives by
companies engaged in businesses similar to the Company's core businesses and
various benefits generally available to employees of the Company (such as health
insurance).
In making its decisions, the Board of Directors and the Compensation
Committee take into account, primarily on a subjective basis, factors relevant
to the specific compensation component being considered, including compensation
paid by other companies of comparable size in businesses similar to the
Company's core businesses, the generation of income and cash flow by the Company
as a whole and the individual core businesses, the attainment of annual
individual and business objectives and an assessment of business performance
against companies of comparable size in businesses similar to the Company's core
businesses, the executive officer's level of responsibility and the
contributions the Company expects the executive to make in support of the
Company's strategies.
1993 COMPENSATION OF CHIEF EXECUTIVE OFFICER. The base salary of Mr.
Franklin for 1993 remained at the same level as in 1992 and 1991, despite the
fact that the Company met or exceeded its overall financial goals in 1992. Mr.
Franklin's bonus potential in each of the last three years has been targeted at
35% of base salary, with a potential range of 0% -- 70% of base salary, the same
as that of other executive officers. Mr. Franklin's 1993 cash bonus, which was
based on the degree of attainment of financial and other goals established at
the beginning of 1993, was less than 27% of his 1992 bonus, even though in 1993
the Company had growth in both revenues and operating income (excluding a
goodwill writedown) in excess of nine percent, successfully completed its
initial public offering of common stock and made significant progress in a
number of other strategic areas. In 1993 Mr. Franklin received two option grants
under the Company's 1991 Stock Option Plan, and in making those grants the Board
of Directors took into consideration the factors described above under "Stock
Option Plan."
<TABLE>
<S> <C>
Dr. Peter T. Flawn Edward H. Harte
Larry Franklin Houston H. Harte
Christopher M. Harte Andrew B. Shelton
</TABLE>
COMPARISON OF SHAREHOLDER RETURN
The following graph compares the cumulative total return of the Company's
Common Stock during the period commencing November 4, 1993, the date public
trading of the Common Stock began following the Company's initial public equity
offering, to December 31, 1993 with the S&P 500 Index and a peer group selected
by the Company.
The S&P 500 Index includes 500 United States companies in the industrial,
transportation, utilities and financial sectors and is weighted by market
capitalization. The peer group selected by the Company, which also is weighted
by market capitalization, includes Acxiom Corporation, Catalina Marketing
Corporation, DiMark, Inc., R.R. Donnelley & Sons Company, Dow Jones & Company,
Inc., Gannett Co., Inc., Knight-Ridder, Inc., M/A/R/C Group, The New York Times
Company, The Times Mirror Company and Tribune Company.
11
<PAGE> 14
The graph depicts the results of investing $100 in the Company's Common
Stock, the S&P 500 Index and the peer group selected by the Company at closing
prices on November 4, 1993. It assumes that all dividends were reinvested with
respect to the S&P 500 Index and the peer group selected by the Company.
<TABLE>
<CAPTION>
Harte-Hanks
Measurement Period Communica-
(Fiscal Year Covered) tions, Inc. Peer Group S&P 500
<S> <C> <C> <C>
NOV 4 100.00 100.00 100.00
DEC 31 117.29 108.00 102.16
</TABLE>
STOCK OPTION PLANS
Prior to the Company's initial public equity offering in November 1993, the
Company's stockholders approved the Harte-Hanks Communications, Inc. 1984 Stock
Option Plan (the "1984 Stock Option Plan") and the Harte-Hanks Communications,
Inc. 1991 Stock Option Plan (the "1991 Stock Option Plan") (collectively, the
"Stock Option Plans"). The general purpose of the Stock Option Plans is to
advance the interests of the Company and its stockholders by strengthening the
ability of the Company to attract and retain the best available personnel for
positions of substantial responsibility and to provide additional incentives to
key employees of the Company to promote the Company's success.
SUMMARY OF THE PROVISIONS OF THE STOCK OPTION PLANS. Options are no longer
granted under the 1984 Stock Option Plan. At December 31, 1993, options to
purchase 702,300 shares of Common Stock were outstanding under the 1984 Stock
Option Plan. Options may be granted pursuant to the 1991 Stock Option Plan at
any time as long as the total number of shares that may be issued pursuant to
the exercise of such options does not exceed 2,000,000 shares. Any shares
subject to unexercised portions of options granted under the 1991 Stock Option
Plan that have been terminated, cancelled or expired may again be subject to
options under the 1991 Stock Option Plan. At December 31, 1993, options to
purchase 1,147,000 shares of Common Stock were outstanding under the 1991 Stock
Option Plan. Shares issued pursuant to exercise of options under the Stock
Option Plans may be authorized and previously unissued shares or previously
issued shares that have been reacquired by the Company.
The Stock Option Plans are administered by the Board of Directors or a
committee appointed by the Board of Directors (the "Administrator"). Options to
purchase Common Stock may be granted under the 1991 Stock Option Plan to any
employees of the Company or its subsidiaries. The Administrator is authorized
(but only to the extent not contrary to the express provisions of the Stock
Option Plans) to select from the persons who are eligible to receive options
under the Stock Option Plans the particular persons who will receive options, to
interpret the Stock Option Plans, to prescribe, amend, and rescind rules and
regulations
12
<PAGE> 15
relating to the Stock Option Plans, to determine the form and content of options
to be issued under the Stock Option Plans, and to make other determinations and
exercise such other power and authority as may be necessary or advisable for the
administration of the Stock Option Plans. The Administrator determines the
number of options, the number of shares subject to each option, the exercise
price or prices of each option, the vesting and exercise period of each option,
and such other terms and conditions of each option, if any, as are not
inconsistent with the provisions of the 1991 Stock Option Plan. The
Administrator may impose such restrictions on the ownership and transfer of
shares issued pursuant to the Stock Option Plans as it deems desirable. All
decisions, determinations, and interpretations of the Administrator with respect
to the Stock Option Plans and options granted thereunder are final and
conclusive.
In the event that there is any change in the Common Stock subject to
options granted under the Stock Option Plans as the result of any stock dividend
on, dividend of, or stock split or stock combination of, or any like change in,
stock of the same class, or in the event of any change in the capital structure
of the Company, the Administrator will make such adjustments with respect to
options, or any provisions of the Stock Option Plans, as it deems appropriate to
prevent dilution or enlargement of option rights.
The Stock Option Plans may be suspended or discontinued at any time by the
Administrator. The Administrator may amend either Stock Option Plan from time to
time in such respects as it may deem advisable in its sole discretion. No action
of the Administrator may impair any outstanding option without the consent of
the holder of the option.
Under the 1991 Stock Option Plan, the Administrator may, either at the time
an option is granted or at any time prior to or upon the occurrence of a "change
of control" or "potential change of control" (as defined), provide for the
accelerated exercisability of each option outstanding at the time of such change
of control or potential change of control event.
FEDERAL INCOME TAX CONSEQUENCES. Under the Stock Option Plans, the Company
may grant options which, for federal income tax purposes, (i) are treated as
"incentive stock options" within the meaning of Section 422 of the Code or (ii)
are treated as nonqualified options subject to Section 83 of the Code. The
federal income tax consequences of each type of option are different for the
participants and for the Company.
Incentive Stock Options. For an option that qualifies as an incentive stock
option the participant will not realize taxable income upon either the receipt
or the exercise of the option, unless the participant is subject to the
alternative minimum tax. Upon the sale or exchange of shares acquired pursuant
to the exercise of the option at least two years after grant of the option and
one year after exercise of the option, any gain or loss will be treated as
capital gain or loss. No deduction will be allowed at any time to the Company
for federal income tax purposes in connection with the grant or exercise of the
option or a qualifying disposition of shares acquired pursuant to the exercise
of the option. In a disposition which does not satisfy such holding period
requirements the participant will be treated as receiving ordinary income equal
to the difference between the fair market value of the transferred shares on the
date of exercise and the exercise price of such shares. In the event the sales
price received in a disposition not satisfying such holding period requirements
exceeds the value of the Common Stock on the date of exercise, the disposition
also will result in capital gain to the extent of such excess. The amount
treated as ordinary income to the participant because of a disposition not
satisfying such holding period requirements will normally be allowed as a
federal income tax deduction of the Company.
Nonqualified Options. No taxable income will be realized by the participant
upon the grant of an option that does not qualify as an incentive stock option.
A participant generally will recognize ordinary taxable income upon exercise of
a nonqualified option in an amount equal to the excess of the fair market value
of the Common Stock on the date of exercise over the option price paid. The
Company will be allowed a deduction for federal income tax purposes equal to the
taxable income recognized by the participant.
This summary of the effect of the Federal income tax upon the participants
in the Stock Option Plans does not purport to be complete. Tax treatment under
foreign, state, or local law is not covered in this summary.
13
<PAGE> 16
OUTSTANDING OPTIONS. Through December 31, 1993, options to purchase a total
of 1,528,300 shares at an exercise price equal to fair market value at the date
of grant have been granted and remain outstanding under the Stock Option Plans
to 84 employees. Additionally, under the 1991 Option Plan, through December 31,
1993, 321,000 performance options at an exercise price of $1.00 per share have
been granted and remain outstanding to 41 employees. Information regarding
options granted to the executive officers named in the Summary Compensation
Table is set forth under "Option Grants During 1993" and "Aggregated Option
Exercises in 1993 and 1993 Year-End Option Values." As of December 31, 1993,
1,000,000 options, with an average exercise price of $7.79, have been granted to
all executive officers as a group, and 849,300 options have been granted to
employees of the Company who were not executive officers of the Company at an
average exercise price of $7.77. Directors who are not also employees are not
eligible to receive options under the Stock Option Plans.
As of March 15, 1994, the Common Stock had a market value of $20.38 per
share.
STOCKHOLDER PROPOSALS
A proper proposal submitted by a stockholder in accordance with applicable
rules and regulations for presentation at the Company's next annual meeting that
is received at the Company's principal executive office by November 30, 1994
will be included in the Company's proxy statement and form of proxy for that
meeting.
PERSONS MAKING THE SOLICITATION
The enclosed proxy is solicited on behalf of the Board of Directors of the
Company. The cost of soliciting proxies in the accompanying form will be paid by
the Company. Officers of the Company may solicit proxies by mail, telephone or
telegraph. Upon request, the Company will reimburse brokers, dealers, banks and
trustees, or their nominees, for reasonable expenses incurred by them in
forwarding proxy material to beneficial owners of shares of the Common Stock.
INDEPENDENT AUDITORS
KPMG Peat Marwick, independent certified public accountants, has been
selected by the Board of Directors as the Company's independent auditor for the
year 1994. Representatives of KPMG Peat Marwick, who were also the Company's
independent auditors for the year 1993, are expected to be present at the Annual
Meeting. They will have the opportunity to make a statement if they desire to do
so and will be available to respond to appropriate questions.
OTHER MATTERS
The Board of Directors is not aware of any matter to be presented for
action at the meeting other than the matters set forth herein. Should any other
matter requiring a vote of stockholders arise, the proxies in the enclosed form
confer upon the person or persons entitled to vote the shares represented by
such proxies discretionary authority to vote the same in accordance with their
best judgment in the interest of the Company.
14
<PAGE> 17
FINANCIAL STATEMENTS
A copy of the Company's 1993 Annual Report containing audited financial
statements accompanies this Proxy Statement. The Annual Report does not
constitute a part of the proxy solicitation material.
THE COMPANY WILL PROVIDE, WITHOUT CHARGE, TO EACH PERSON TO WHOM A COPY OF
THIS PROXY STATEMENT IS DELIVERED, UPON THE WRITTEN OR ORAL REQUEST OF SUCH
PERSON AND BY FIRST CLASS MAIL OR OTHER EQUALLY PROMPT MEANS WITHIN ONE BUSINESS
DAY OF RECEIPT OF SUCH REQUEST, A COPY OF THE COMPANY'S ANNUAL REPORT ON FORM
10-K. REQUESTS SHOULD BE DIRECTED TO SECRETARY, HARTE-HANKS COMMUNICATIONS,
INC., 200 CONCORD PLAZA DRIVE, SUITE 800, SAN ANTONIO, TEXAS 78216; TELEPHONE
NUMBER: (210) 829-9000.
By Order of the Board of Directors,
DONALD R. CREWS
Senior Vice President, Legal and
Secretary
March 30, 1994
15
<PAGE> 18
PROXY
HARTE-HANKS COMMUNICATIONS, INC.
BOARD OF DIRECTORS PROXY FOR THE ANNUAL MEETING
OF STOCKHOLDERS AT 10:00 A.M., FRIDAY MAY 6, 1994
200 CONCORD PLAZA DRIVE, SUITE 800
SAN ANTONIO, TEXAS 78216
The undersigned stockholder of Harte-Hanks Communications, Inc. (the
"Company") hereby appoints Larry Franklin, Houston H. Harte and Andrew B.
Shelton or any of them, as proxies, each with full powers of substitution, to
vote the shares of the undersigned at the above-stated Annual Meeting and at
any adjournment(s) thereof.
( X ) PLEASE MARK
VOTES AS IN
THIS EXAMPLE
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS AND WILL BE VOTED
IN ACCORDANCE WITH THE SPECIFICATIONS MADE BELOW. IF A CHOICE IS NOT INDICATED
WITH RESPECT TO ITEMS (1) AND (2), THIS PROXY WILL BE VOTED "FOR" SUCH ITEMS.
THE PROXIES WILL USE THEIR DISCRETION WITH RESPECT TO ANY MATTER REFERRED TO IN
ITEM (3). THIS PROXY IS REVOCABLE AT ANY TIME BEFORE IT IS EXERCISED.
1. Election of Directors
NOMINEES: Dr. Peter T. Flawn, Christopher M. Harte
FOR WITHHELD
( ) ( )
( )_______________________________________________________________________
(INSTRUCTION: To withhold authority to vote for any individual nominees, write
that nominee's name on the space provided above)
FOR AGAINST ABSTAIN
2. Approval of Harte-Hanks ( ) ( ) ( )
Communications, Inc. 1994
Employee Stock Purchase Plan.
3. On any other business that may properly come before the meeting; hereby
revoking any proxy or proxies heretofore given by the undersigned.
Receipt herewith of the Company's Annual Report and Notice of Meeting and
Proxy Statement, dated March 30, 1994, is hereby acknowledged.
MARK HERE
FOR ADDRESS ( )
CHANGE AND
NOTE AT LEFT
(Joint owners must EACH sign. Please sign EXACTLY as your name(s) appear(s) on
this card. When signing as attorney, trustee, executor, administrator, guardian
or corporate officer, please give your FULL title.)
PLEASE SIGN, DATE AND MAIL TODAY
Signature:___________________________________ Date_____________________
Signature:___________________________________ Date_____________________
