<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 [X]
Filed by a party other than the registrant [ ]
Check the appropriate box:
[ ] Preliminary proxy statement [ ] Confidential, for Use of the
Commission Only (as permitted by
Rule 14a-6(e)(2))
[X] Definitive proxy statement
[ ] Definitive additional materials
[ ] Soliciting material pursuant to Rule 14a-11(c) or
Rule 14a-12
MASCO CORPORATION
- -------------------------------------------------------------------------------
(Name of Registrant as Specified in Its Charter)
MASCO CORPORATION
- -------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registant)
Payment of filing fee (Check the appropriate box):
[X] $125 per Exchange Act Rule 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(i)(2)
or Item 22(a)(2) of Schedule 14A.
[ ] $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 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
- --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
- --------------------------------------------------------------------------------
(5) Total fee paid:
- --------------------------------------------------------------------------------
[ ] Fee paid previously with preliminary materials.
- --------------------------------------------------------------------------------
[ ] 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:
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<PAGE> 2
MASCO CORPORATION
21001 Van Born Road
Taylor, Michigan 48180
-------------------------
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO THE STOCKHOLDERS OF MASCO CORPORATION:
The Annual Meeting of Stockholders of Masco Corporation will be held at the
offices of the Company, 21001 Van Born Road, Taylor, Michigan 48180, on
Wednesday, May 17, 1995 at 10:00 A.M., Eastern daylight time. The purposes of
the meeting, which are set forth in detail in the accompanying Proxy Statement,
are:
1. To elect three Class I Directors; and
2. To transact such other business as may properly come before the meeting.
The Board of Directors has fixed the close of business on March 31, 1995 as
the record date for the determination of stockholders entitled to notice of and
to vote at the meeting and at any adjournment thereof.
Your attention is called to the accompanying Proxy Statement and Proxy.
Whether or not you plan to be present at the meeting, you are requested to sign
and return the Proxy in the enclosed envelope to which no postage need be
affixed if mailed in the United States. Your prompt attention will be
appreciated. Prior to being voted, the Proxy may be withdrawn in the manner
specified in the Proxy Statement.
By Order of the Board of Directors
EUGENE A. GARGARO, JR.
Secretary
April 18, 1995
<PAGE> 3
PROXY STATEMENT
To be mailed on or about April 20, 1995
ANNUAL MEETING OF STOCKHOLDERS OF
MASCO CORPORATION
May 17, 1995
GENERAL INFORMATION
The solicitation of the enclosed Proxy is made by the Board of Directors of
Masco Corporation for use at the Annual Meeting of Stockholders of the Company
to be held at its offices at 21001 Van Born Road, Taylor, Michigan 48180, on
Wednesday, May 17, 1995 at 10:00 A.M., Eastern daylight time, and at any
adjournment thereof.
The expense of this solicitation will be borne by the Company. Solicitation
will be by use of the mails, and executive officers and other employees of the
Company may solicit Proxies, without extra compensation, personally and by
telephone and other means of communication. In addition, the Company has
retained Morrow & Company, Inc. to assist in the solicitation of Proxies for a
fee of $8,000, plus expenses. The Company will also reimburse brokers and other
persons holding Company Common Stock in their names or in the names of their
nominees for their reasonable expenses in forwarding Proxies and Proxy materials
to beneficial owners.
Stockholders of record as of the close of business on March 31, 1995 will
be entitled to vote at the Annual Meeting. Each share of outstanding Company
Common Stock is entitled to one vote. As of March 31, 1995 there were
158,397,345 shares of Company Common Stock, $1 par value, outstanding and
entitled to vote.
The shares represented by the Proxy will be voted as instructed if received
in time for the Annual Meeting. Any person signing and mailing the Proxy may,
nevertheless, revoke it at any time before it is exercised by written notice to
the Company (Attention: Eugene A. Gargaro, Jr., Secretary) at its executive
offices at 21001 Van Born Road, Taylor, Michigan 48180, or at the Annual
Meeting.
ELECTION OF DIRECTORS
The Board of Directors is divided into three classes. The term of office of
the Class I Directors expires at this meeting and the Board of Directors
proposes the re-election of Arman Simone, Wayne B. Lyon and Peter W. Stroh to
serve as the Class I Directors for a term expiring at the 1998 Annual
<PAGE> 4
Meeting or until their respective successors are elected and qualified. The
current Class II and Class III Directors intend to continue in office for their
respective terms. The Board of Directors expects that the persons named as
proxies in the Proxy will vote the shares represented by each Proxy for the
election as Directors of such nominees unless a contrary direction is indicated.
If prior to the meeting any nominee is unable or unwilling to serve as a
Director, which the Board of Directors does not expect, the persons named as
proxies will vote for such alternate nominee, if any, as may be recommended by
the Board of Directors.
Presence in person or by proxy of holders of a majority of outstanding
shares of Company Common Stock will constitute a quorum at the Annual Meeting.
Broker non-votes and abstentions will be counted toward the establishment of a
quorum. Assuming a quorum is present, Directors are elected by a plurality of
the votes cast by the holders of Company Common Stock. The three individuals who
receive the largest number of votes cast are elected as Directors; therefore,
shares not voted (whether due to abstention or broker non-vote) do not affect
the election of Directors.
Information concerning the nominees and continuing Directors is set forth
below.
<TABLE>
<CAPTION>
SHARES OF COMPANY
FIRST BECAME COMMON STOCK
NAME, AGE, PRINCIPAL AND HAS BENEFICIALLY
OCCUPATION AND DIRECTORSHIPS SERVED AS A OWNED AS OF
OF OTHER PUBLICLY REGISTERED COMPANIES DIRECTOR SINCE MARCH 15, 1995
- ------------------------------------------------------ --------------- -----------------
<S> <C> <C>
CLASS I (NOMINEES FOR TERM TO EXPIRE AT 1998
ANNUAL MEETING)
Wayne B. Lyon, 62..................................... 1988 463,073
President and Chief Operating Officer of the
Company; Director of Comerica Incorporated, Payless
Cashways, Inc. and Emco Limited
Arman Simone, 67...................................... 1952 to 1969 72,000
Retired, formerly President of Simone Corporation, and since 1972
commercial builders and developers
Peter W. Stroh, 67.................................... 1992 500
Chairman of The Stroh Brewery Company, a
manufacturer of malt beverage products; Director of
NBD Bancorp, Inc.
CLASS II (TERM TO EXPIRE AT 1996 ANNUAL MEETING)
Dr. Lillian Bauder, 55................................ 1992 1,500
President and Chief Executive Officer of Cranbrook
Educational Community; Director of The Detroit
Edison Company
</TABLE>
2
<PAGE> 5
<TABLE>
<CAPTION>
SHARES OF COMPANY
FIRST BECAME COMMON STOCK
NAME, AGE, PRINCIPAL AND HAS BENEFICIALLY
OCCUPATION AND DIRECTORSHIPS SERVED AS A OWNED AS OF
OF OTHER PUBLICLY REGISTERED COMPANIES DIRECTOR SINCE MARCH 15, 1995
- ------------------------------------------------------ --------------- -----------------
<S> <C> <C>
John A. Morgan, 64.................................... 1969 1,600
Partner, Morgan Lewis Githens & Ahn, investment
bankers; Director of FlightSafety International,
Inc., MascoTech, Inc., McDermott International, Inc.
and TriMas Corporation
CLASS III (TERM TO EXPIRE AT 1997 ANNUAL
MEETING)
Richard A. Manoogian, 58.............................. 1964 4,088,868
Chairman of the Board and Chief Executive Officer of
the Company and of MascoTech, Inc., and Chairman of
the Board of TriMas Corporation; Director of NBD
Bancorp, Inc.
Erwin L. Koning, 83................................... 1964 4,000
Retired, formerly Senior Vice President of NBD Bank
</TABLE>
For further information concerning beneficial ownership, see "Security
Ownership of Management." For further information concerning MascoTech and
TriMas see "Certain Relationships and Related Transactions."
All of the nominees and continuing Directors have been engaged during the
past five years in the occupations listed in the preceding table.
The Board of Directors held four meetings during 1994. The Audit Committee
of the Board of Directors, consisting of Dr. Bauder and Messrs. Koning, Morgan
and Stroh, held two meetings during 1994. It reviews and acts or reports to the
Board with respect to various auditing and accounting matters, including the
selection and fees of the Company's independent accountants, the scope of audit
procedures, the nature of services to be performed by the independent
accountants and the Company's accounting practices. The Compensation Committee
of the Board of Directors, consisting of Messrs. Koning, Morgan and Simone, held
four meetings during 1994. It establishes and monitors executive compensation
and administers and determines awards and options granted under restricted stock
incentive and stock option plans. The Board of Directors has not established a
separate committee of its members to nominate candidates for election as
Directors.
Each Director (other than Messrs. Manoogian and Lyon, who are also Company
employees) receives an annual fee and a payment for each Board of Directors
meeting (and committee meeting if not held on a date on which the entire Board
holds a meeting) which the Director physically attends. The annual fee paid for
1994 was $50,000 and the fee for each such Board and committee meeting was
$1,000.
3
<PAGE> 6
SECURITY OWNERSHIP OF MANAGEMENT
The following table sets forth information concerning beneficial ownership
of Company Common Stock as of March 15, 1995 by (i) each of the Directors, (ii)
each of the named executive officers (as hereinafter defined), and (iii) all
Directors and executive officers of the Company as a group.
<TABLE>
<CAPTION>
SHARES OF COMPANY COMMON PERCENTAGE OF COMPANY COMMON
NAME STOCK BENEFICIALLY OWNED STOCK BENEFICIALLY OWNED
- --------------------------------------- ------------------------ ----------------------------
<S> <C> <C>
Dr. Lillian Bauder..................... 1,500 *
Erwin L. Koning........................ 4,000 *
Wayne B. Lyon.......................... 463,073 *
Richard A. Manoogian................... 4,088,868 2.6%
John A. Morgan......................... 1,600 *
Arman Simone........................... 72,000 *
Peter W. Stroh......................... 500 *
Ronald L. Jones........................ 139,230 *
Raymond F. Kennedy..................... 230,620 *
Richard G. Mosteller................... 195,683 *
All 19 Directors and executive officers
of the Company as a group (excluding
subsidiary, divisional and group
executives).......................... 7,604,815 4.7%
</TABLE>
- -------------------------
* Less than one percent
Shares beneficially owned by the Directors, executive officers and all
Directors and executive officers of the Company as a group include shares held
by certain foundations and trusts and under employee long-term incentive
programs, as described below, and except for shares so held, the Directors and
executive officers have sole voting and investment power with respect to their
shares. Shares owned by Mr. Manoogian and by all Directors and executive
officers of the Company as a group include in each case an aggregate of
2,340,200 shares owned by charitable foundations of which Mr. Manoogian is a
Director. Shares owned by Mr. Lyon and by all Directors and executive officers
of the Company as a group include in each case 28,448 shares owned by a
charitable foundation of which Mr. Lyon is a Director. Shares owned by all
Directors and executive officers of the Company as a group include 25,530 shares
held by trusts of which an executive officer is a trustee. The Directors of the
foundations and the trustees exercise voting and investment power with respect
to shares owned by the foundations and trusts, but Messrs. Manoogian and Lyon
and the executive officer who is a trustee for such trusts disclaim beneficial
ownership of such shares. Also included are shares issuable under stock options
exercisable prior to May 15, 1995 (92,000 shares for Mr. Jones, 132,310 shares
for Mr. Kennedy, 211,125 shares for Mr. Lyon, 717,740 shares for Mr. Manoogian,
127,722 shares for Mr. Mosteller and 1,667,134 shares for all Directors and
executive officers of the Company as a group) and unvested restricted award
shares issued under the Company's stock incentive plans (33,334 shares for Mr.
Jones, 54,390 shares for Mr. Kennedy, 49,850 shares for Mr. Lyon, 71,076 shares
for Mr. Manoogian, 33,667 shares for Mr. Mosteller and 393,560 shares for all
Directors and executive officers of the Company as a group). Mr. Manoogian may
be deemed a controlling person of the Company by reason of his significant
ownership of Company Common Stock and position as a Director and an executive
officer.
4
<PAGE> 7
EXECUTIVE COMPENSATION COMMITTEE REPORT
One of Masco Corporation's primary business objectives is to maximize
long-term stockholder returns. To achieve this objective, the Company believes
it is necessary to attract, retain and motivate the highest quality management
team possible that can conceptualize, strategize and tactically implement
business development, product development, manufacturing technologies and
marketing and service programs to generate long-term profit growth.
Establishing compensation programs generally and determining the
compensation of individual executive officers are complex matters involving
numerous issues and a variety of data. The approach of the Compensation
Committee, which is composed entirely of outside, non-employee Directors, is
primarily subjective in nature. The Committee identifies relevant factors to be
considered, such as the need to be competitive in the market for executive
talent and to provide incentives and rewards for individual and corporate
performance. However, the Committee maintains a flexible approach that is based
on the exercise of judgment and discretion and reflects the Company's
entrepreneurial operating environment and long-term performance orientation.
Precise formulas, targets or goals are not utilized and specific weights are not
assigned to the various factors. The Committee focuses on the Company's goal of
long-term enhancement of stockholder value by stressing long-term goals and by
using stock-based incentive programs with extended vesting schedules. The
Compensation Committee believes the use of such incentives to retain and
motivate individuals who have developed the skills and expertise required to
lead the Company is key to the Company's success.
The present compensation arrangement for executive officers consists of a
blend of base salary, annual cash bonus and long-term (up to ten-year)
incentives utilizing Company Common Stock. The Committee uses a variety of
resources, including published compensation surveys, as it considers information
concerning current compensation practices within the Company's industries
(including companies that are included in the S&P Building Materials Index and
the S&P Furniture & Household Products Index), and in addition, the
compensation-related policies and practices of corporations in other industries
which are similar to the Company in terms of revenues and market value, because
the Committee believes that the Company competes with such companies for
executive talent. Although the Committee reviews such information for general
guidance, it does not specifically target compensation of the executive officers
to compensation levels at other companies.
Annual cash compensation consists of salary and bonus. Base salaries are
usually adjusted annually by establishing ranges for increases for executive
officers that reflect inflation, promotions and merit and that are similar to
the ranges established for other corporate office employees. Bonuses are
adjusted annually in a similar manner. The salary ranges reflect changes
observed in general compensation levels of salaried employees, and in particular
within the geographic area of the Company's corporate office and within the
Company's industries. In addition, the Company's performance for the particular
year and the Company's prospects are more significant factors in determining
ranges for year-end bonuses than in determining salary ranges. In connection
with the award of bonuses, corporate performance goals are considered by the
Committee in light of general economic conditions, and include items such as
comparisons of year-to-year operating results, market share performance and the
achievement of budget objectives and forecasts. However, the Committee does not
generally identify specific goals that must be satisfied in order for bonuses to
be awarded. Salary and bonus adjustments are subject to variances from
5
<PAGE> 8
the established ranges for a variety of subjective factors such as an
individual's contribution to the performance of the Company and its affiliates
in addition to the competitive considerations noted above. In general, the
potential bonus opportunity for executive officers is up to fifty percent of
base salary.
Restricted stock awards and stock options granted under the 1991 Long Term
Stock Incentive Plan are used as part of the Company's long-term incentive
arrangements, which focus the recipient on long-term enhancement in stockholder
value and help retain key employees. Factors reviewed by the Committee in
determining whether to grant options and awards are generally the same factors
considered in determining salaries and bonuses described above. The Committee
believes that the level of restricted stock awards and option grants must be
sufficient in size and potential value to provide a strong incentive and to
reinforce the individual's commitment to the Company. The history of restricted
stock awards and stock option grants previously granted to an executive is also
a factor in determining new awards and grants, and in general the potential
opportunity for annual restricted stock awards is up to thirty percent of base
salary. The Committee recognizes that the dollar value of these stock-based
incentives can appreciate to substantial amounts as a result of the Company's
extended vesting schedule, since there is a longer time period for the Company's
stock price to appreciate when compared to the shorter vesting schedule used by
many other companies which enable individuals to receive their incentives in a
shorter time period.
Restricted stock awards granted under the 1991 Plan generally vest in ten
percent annual installments over a period of ten years from the date of grant.
In general, vesting is contingent on a continuing employment or consulting
relationship with the Company. The 1991 Plan provides, however, that all shares
vest immediately upon death, permanent and total disability or the occurrence of
certain events constituting a change in control of the Company. Each of the
named executive officers received restricted stock awards in 1994 in conjunction
with awards made to key corporate office employees due to the improved financial
performance made by the Company during the prior fiscal year.
Original option grants made under the 1991 Plan generally vest in
installments beginning in the third year and extending through the eighth year
after grant, and, unless otherwise provided, may be exercised until the earlier
of ten years from the date of grant or termination of the employment or
consulting relationship, as to the number of shares then exercisable. The 1991
Plan also provides that upon the occurrence of certain events constituting a
change in control of the Company, all options previously granted immediately
become fully exercisable. The Committee may permit Company Common Stock to be
used in payment of federal, state and local withholding tax obligations
attributable to the exercise of options, and may accept the surrender of an
exercisable option and authorize payment by the Company of an amount equal to
the difference between the option exercise price of the stock and its then fair
market value.
Although there were no original option grants to the named executive
officers in 1994, certain of the named executive officers received restoration
options. A restoration option is granted when a participant exercises an
original stock option and pays the exercise price by delivering shares of
Company Common Stock. The restoration option is granted equal to the number of
shares delivered by the participant and does not increase the number of shares
covered by the original option grant. The exercise price is 100 percent of the
fair market value of Company Common Stock on the date the restoration option is
granted so that the participant benefits only from subsequent increases in the
Company's stock price.
6
<PAGE> 9
The Committee believes that restoration options help to align more closely the
interests of executives with the long-term interests of stockholders and allow
executives to maintain the level of their equity-based interest in the Company
through a combination of direct stock ownership and options.
The Committee has reviewed the proposed regulations relating to Internal
Revenue Code Section 162(m) which limits the deductibility of annual executive
compensation in excess of $1,000,000 for the five highest paid executives. The
Committee intends to continue arrangements so that stock options granted under
the Company's existing stock incentive plan are deductible compensation under
the proposed regulations, and is restructuring arrangements for cash bonuses in
order that such bonuses will be performance-based and are therefore deductible.
The Committee continues to believe that it is in the Company's interest to
retain flexibility in its compensation program, and although the remaining
compensation will in some circumstances exceed the limitation of Section 162(m)
by a nominal amount, the Committee believes that any tax deduction lost on
account of such compensation will be insignificant for the foreseeable future.
The Committee will continue to evaluate its position as the regulations under
Section 162(m) are revised.
COMPENSATION OF CEO
Compensation decisions for all executives, including Mr. Manoogian, the
Chairman of the Board and Chief Executive Officer, are generally based on the
criteria described above. Mr. Manoogian's salary increase is within the range of
increases established by the Committee, and reflects inflation and the other
factors that are used to establish the range of increases for executive officers
and other corporate office employees. Bonuses were increased for Mr. Manoogian
and the other named executive officers in light of the improvement in the
Company's financial performance in 1994.
Erwin L. Koning
John A. Morgan
Arman Simone
7
<PAGE> 10
COMPENSATION OF EXECUTIVE OFFICERS
Summary Compensation Table
The following table summarizes the annual and long-term compensation of the
Company's chief executive officer and the other four highest paid executive
officers (collectively, the "named executive officers") for 1994, 1993 and 1992.
<TABLE>
<CAPTION>
LONG-TERM
COMPENSATION
-----------------------
AWARDS
-----------------------
ANNUAL COMPENSATION RESTRICTED SECURITIES
---------------------------- STOCK UNDERLYING ALL OTHER
NAME AND PRINCIPAL POSITION YEAR SALARY BONUS AWARDS(2) OPTIONS COMPENSATION(4)
--------------------------- ---- -------- -------- --------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Richard A. Manoogian, 1994 $930,000 $477,000 $220,000 0 $214,000
Chairman of the Board 1993 908,000 294,000 0 0 68,000
and Chief Executive Officer(1) 1992 867,000 294,000 0 939,237(3) 40,000
Wayne B. Lyon, 1994 $734,000 $377,000 $175,000 0 $163,000
President and Chief 1993 699,000 323,000 173,250 126,125(3) 54,000
Operating Officer 1992 651,000 280,000 0 92,532(3) 33,000
Raymond F. Kennedy, 1994 $578,000 $298,000 $137,000 30,773(3) $118,000
Executive Vice President 1993 546,000 268,000 135,450 0 42,000
President -- Building Products 1992 502,000 238,000 545,000 48,537(3) 27,000
Ronald L. Jones, 1994 $468,000 $255,000 $111,000 0 $ 66,000
President -- Home Furnishings Products 1993 445,000 225,000 110,250 0 26,000
1992 414,000 205,000 0 0 19,000
Richard G. Mosteller, 1994 $490,000 $251,000 $117,000 27,000(3) $109,000
Senior Vice President -- Finance 1993 466,000 215,000 116,550 17,000(3) 41,000
1992 434,000 187,000 0 0 26,000
</TABLE>
- -------------------------
(1) The foregoing does not reflect 1994 salary and bonus Mr. Manoogian received
from MascoTech as its Chairman of the Board and Chief Executive Officer
($600,000) or from TriMas as its Chairman of the Board ($100,000).
(2) This column sets forth the dollar value as of the date of grant of
restricted stock awarded under the Company's 1991 Long Term Stock Incentive
Plan (the "1991 Plan"). Restricted stock awards granted to date vest over a
period of ten years from the date of grant with ten percent of each award
vesting annually. In general, vesting is contingent on a continuing
employment or consulting relationship with the Company. The following number
of shares were awarded to the named executive officers in 1994: Mr.
Manoogian - 5,840 shares; Mr. Lyon - 4,650 shares; Mr. Kennedy - 3,650
shares; Mr. Jones - 2,960 shares; and Mr. Mosteller - 3,100 shares. As of
December 31, 1994, the aggregate number and market value of unvested
restricted shares of Company Common Stock held by each of the named
executive officers under the 1991 Plan and prior plans were: Mr.
Manoogian - 55,630 shares valued at $1,259,000; Mr. Lyon - 40,025 shares
valued at $906,000; Mr. Kennedy - 45,595 shares valued at $1,032,000; Mr.
Jones - 26,360 shares valued at $596,000;
8
<PAGE> 11
and Mr. Mosteller - 25,835 shares valued at $585,000. As of December 31,
1994, Mr. Manoogian held 75,000 restricted shares of MascoTech common stock
granted under the Company's Restricted Stock (Industries) Incentive Plan
valued at $975,000. Recipients of restricted stock awards have the right to
receive dividends on unvested shares.
(3) No original option grants were made in 1994, 1993 or 1992. Options shown in
those years consist solely of restoration options granted upon the exercise
of previously held stock options. A restoration option does not increase the
number of shares covered by the original option or extend the term of the
original option.
(4) This column includes (a) Company contributions and allocations under the
Company's defined contribution retirement plans for 1994 for the accounts of
each of the named executive officers: Mr. Manoogian - $64,000; Mr.
Lyon - $51,000; Mr. Kennedy - $40,000; Mr. Jones - $32,000; and Mr.
Mosteller - $34,000; and (b) cash payments made pursuant to rights
associated with the annual vesting of certain restricted stock awards
granted in 1989, as follows: Mr. Manoogian - $150,000; Mr. Lyon - $112,000;
Mr. Kennedy - $78,000; Mr. Jones - $34,000; and Mr. Mosteller - $75,000. For
further information regarding these rights, see "Certain Relationships and
Related Transactions."
Option Grant Table
<TABLE>
<CAPTION>
POTENTIAL REALIZABLE
VALUE AT ASSUMED
INDIVIDUAL GRANTS ANNUAL RATES OF
------------------------------------------------------------ STOCK PRICE
NUMBER OF % OF TOTAL APPRECIATION FOR
SECURITIES OPTIONS GRANTED OPTION TERM(2)
UNDERLYING TO EMPLOYEES EXERCISE EXPIRATION --------------------
NAME OPTIONS GRANTED IN 1994 PRICE DATE 5% 10%
- --------------------- --------------- --------------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Richard A. Manoogian 0
Wayne B. Lyon 0
Raymond F. Kennedy 7,718(1) 10.6% $ 36 12/10/97 $ 59,000 $126,000
23,055(1) 31.6% 36 2/28/01 345,000 808,000
Ronald L. Jones 0
Richard G. Mosteller 27,000(1) 37.0% $ 39 3/4 12/10/97 $221,000 $476,000
</TABLE>
- -------------------------
(1) Options granted in 1994 consist solely of restoration options, and are
equal to the number of shares delivered to exercise prior options. The
exercise price of restoration options is equal to the market value of
Company Common Stock on the date the original options were exercised. All
of the options shown in the table are exercisable currently. For further
information, see "Executive Compensation Committee Report."
(2) These amounts are based on assumed rates of appreciation only. Actual
gains, if any, on stock option exercises and Company Common Stock holdings
will depend on overall market conditions and the future performance of the
Company and its Common Stock. There can be no assurance that the amounts
reflected in this table will be realized.
9
<PAGE> 12
Option Exercises and Year-End Value Table
The following table sets forth information concerning each exercise of
stock options during 1994 by each of the named executive officers and the value
at December 31, 1994 of unexercised options held by such individuals. The value
of unexercised options reflects the increase in market value of Company Common
Stock from the date of grant through December 31, 1994 (the closing price of
Company Common Stock on December 30, 1994 was $22 5/8 per share). The value
actually realized upon future option exercises by the named executive officers
will depend on the value of Company Common Stock at the time of exercise.
AGGREGATED OPTION EXERCISES IN 1994, AND DECEMBER 31, 1994 OPTION VALUE
<TABLE>
<CAPTION>
NUMBER OF SECURITIES
UNDERLYING UNEXERCISED VALUE OF UNEXERCISED
OPTIONS AT IN-THE-MONEY OPTIONS AT
SHARES DECEMBER 31, 1994 DECEMBER 31, 1994
ACQUIRED VALUE ---------------------------- ----------------------------
NAME ON EXERCISE REALIZED UNEXERCISABLE EXERCISABLE UNEXERCISABLE EXERCISABLE
---- ----------- -------- ------------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Richard A. Manoogian 0 0 580,000 677,740 $900,000 $475,000
Wayne B. Lyon 0 0 285,000 181,125 $488,000 $ 88,000
Raymond F. Kennedy 53,000 $800,000 179,000 112,310 $311,000 $ 54,000
Ronald L. Jones 0 0 177,000 75,000 $223,000 $ 96,000
Richard G. Mosteller 50,211 $923,000 147,000 112,722 $249,000 $ 99,000
</TABLE>
Retirement Plans
The executive officers participate in pension plans maintained by the
Company for certain of its salaried employees. The following table shows
estimated annual retirement benefits payable for life at age 65 for various
levels of annual compensation and service under these plans.
PENSION PLAN TABLE
<TABLE>
<CAPTION>
YEARS OF SERVICE(1)
-------------------------------------------------------------------
REMUNERATION(2) 5 10 15 20 25 30
- --------------- ------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
$ 200,000 $11,290 $ 22,580 $ 33,870 $ 45,161 $ 56,451 $ 67,741
400,000 22,580 45,161 67,741 90,321 112,902 135,482
600,000 33,870 67,741 101,611 135,482 169,352 203,223
800,000 45,160 90,321 135,482 180,643 225,803 270,964
1,000,000 56,451 112,902 169,352 225,803 282,254 338,705
1,200,000 67,741 135,482 203,223 270,964 338,705 406,446
</TABLE>
- -------------------------
(1) The plans provide for credit for employment with the Company, MascoTech,
TriMas and their subsidiaries. Vesting occurs after five full years of
employment. The benefit amounts set forth in the table above have been
converted from the plans' calculated five-year certain and life benefit and
are not subject to reduction for social security benefits or for other
offsets, except to the extent that pension or equivalent benefits are
payable under a MascoTech or TriMas plan. The table does not
10
<PAGE> 13
depict Internal Revenue Code ("Code") limitations on tax-qualified plans
because one of the plans is a non-qualified plan established by the Company
to restore for certain salaried employees (including the named executive
officers) benefits that are otherwise limited by the Code. For each year of
credited service prior to July 1, 1971 there is an additional annual
benefit equal to 2/10 of 1 percent of final average earnings in excess of
$9,000. Approximate years of credited service for the named executive
officers participating in the plan are: Mr. Manoogian and Mr. Mosteller -
30 (the maximum credited service); Mr. Lyon - 23; Mr. Kennedy - 17; and Mr.
Jones - 7.
(2) For purposes of determining benefits payable, remuneration is equal to the
average of the highest five consecutive January 1 annual base salary rates
paid by the Company prior to retirement.
Under the Company's Supplemental Executive Retirement and Disability Plan,
certain officers and other key executives of the Company, or any company in
which the Company or a subsidiary owns at least 20 percent of the voting stock,
may receive retirement benefits in addition to those provided under the
Company's other retirement plans and supplemental disability benefits. Each
participant is designated by the Compensation Committee or the Chairman of the
Board (and approved by the Compensation Committee in the case of the Company
officers) to receive annually upon retirement on or after the age of 65, an
amount which, when combined with benefits from the Company's other retirement
plans and for most participants any retirement benefits payable by reason of
employment by prior employers, equals 60 percent of the average of the
participant's highest three years' cash compensation received from the Company
(limited to base salary and regular year-end cash bonus). Participants are
limited to an annual payment, which when combined with benefits under the
Company's non-qualified plan, may not exceed a maximum, currently $366,460. A
participant may also receive supplemental medical benefits. A participant who
has been employed at least two years and becomes disabled prior to retirement
will receive annually 60 percent of the participant's total annualized cash
compensation in the year in which the participant becomes disabled, subject to
certain limitations on the maximum payment and reduced by benefits payable
pursuant to the Company's long-term disability insurance and similar plans. Upon
a disabled participant's reaching age 65, the participant receives the annual
cash benefits payable upon retirement, as determined above. A surviving spouse
will receive reduced benefits upon the participant's death. Participants are
required to agree that they will not engage in competitive activities for at
least two years after termination of employment, and if employment terminates by
reason of retirement or disability, during such longer period as benefits are
received under this plan. The named executive officers participate in this plan.
11
<PAGE> 14
PERFORMANCE GRAPH
Set forth below is a line graph comparing the cumulative total shareholder
return on Company Common Stock with the cumulative total return of the S&P 500
Stock Index and an index consisting of an equally weighted average of the S&P
Building Materials Index and the S&P Furniture & Household Products Index (which
reflect the Company's two primary business lines) for the period from January 1,
1990 through December 31, 1994. The graph assumes investments of $100 on
December 31, 1989 in Company Common Stock, the S&P 500 Stock Index and an index
consisting of an equally weighted average of the S&P Building Materials Index
and the S&P Furniture & Household Products Index, and the reinvestment of
dividends.
[PERFORMANCE GRAPH]
The table below sets forth the value as of December 31 of each of the years
indicated of $100 investments made on December 31, 1989 in Company Common Stock,
the S&P 500 Stock Index and an index consisting of an equally weighted average
of the S&P Building Products Index and the S&P Furniture & Household Products
Index, and reinvestment of dividends.
<TABLE>
<CAPTION>
Average of
S&P Building
Measurement Period Materials and
(Fiscal Year Covered) MASCO S&P 500 S&P Furniture Indices
<S> <C> <C> <C>
1989 100.00 100.00 100.00
1990 72.12 96.89 69.03
1991 101.61 126.28 98.59
1992 131.05 135.88 116.97
1993 167.12 149.52 153.88
1994 105.54 151.55 118.07
</TABLE>
12
<PAGE> 15
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
The Compensation Committee of the Board of Directors consists of Messrs.
Koning, Morgan and Simone. From time to time Morgan Lewis Githens & Ahn, of
which Mr. Morgan is a partner, performs investment banking and other services
for the Company and MascoTech, Inc. For 1994, the Company paid such firm
aggregate fees of $500,000, plus expenses, for general investment advisory
services. Eugene A. Gargaro, Jr., an executive officer of the Company, serves on
the Compensation Committees of MascoTech and TriMas. Richard A. Manoogian, an
executive officer of MascoTech and TriMas, is Chairman of the Board and Chief
Executive Officer of the Company.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
MASCOTECH, INC.
The Company owns approximately 44 percent of the outstanding common stock
of MascoTech which was created by the Company in its 1984 restructuring. As part
of the restructuring, the Company entered into certain agreements with
MascoTech.
MascoTech Corporate Services Agreement
Under a Corporate Services Agreement, the Company provides MascoTech and
its subsidiaries with office space for its executive offices, use of the
Company's data processing equipment and services, certain research and
development services, corporate administrative staff and other support services
in return for MascoTech's payment of an annual base service fee of .8 percent of
its consolidated annual net sales, subject to adjustments. This agreement also
provides for various license rights and confidential treatment of information
which may arise from the Company's performance of research and development
services on behalf of MascoTech. MascoTech paid the Company approximately $11
million for 1994 under this agreement, which is terminable by MascoTech at any
time and by the Company at the end of any calendar year, in each case upon at
least 90 days notice.
MascoTech Corporate Opportunities Agreement
The Company and MascoTech have entered into a Corporate Opportunities
Agreement to address potential conflicts of interest with respect to future
business opportunities. This agreement materially restricts the ability of
either party to enter into businesses in which the other party is engaged,
without the consent of the other party. It will continue in effect until one
year after the termination of the Corporate Services Agreement, and thereafter
will be renewed automatically for one-year periods, subject to termination by
either party at least 90 days prior to any such scheduled renewal date.
MascoTech Stock Repurchase Agreement
Under a Stock Repurchase Agreement, the Company has the right to sell to
MascoTech, at fair market value, shares of MascoTech common stock if the
Company's ownership of MascoTech common stock would exceed 49 percent as a
result of MascoTech repurchases of its common stock. The
13
<PAGE> 16
Company has advised MascoTech that it intends to exercise such right whenever
necessary to prevent its ownership of MascoTech common stock from exceeding 49
percent of the MascoTech common stock then outstanding.
MascoTech Assumption and Indemnification Agreement
Under an Assumption and Indemnification Agreement, MascoTech assumed, and
agreed to indemnify the Company against, substantially all of the liabilities
and obligations of the businesses transferred to it in the Company's 1984
restructuring, including claims and litigation pending at the time of the
transfer or asserted thereafter based on events or circumstances that occurred
or existed prior to the transfer.
TRIMAS CORPORATION
Effective October 1, 1988, MascoTech transferred to TriMas various
businesses and cash in exchange for common stock and other securities of TriMas.
In a related transaction, the Company, which prior to such transfer had an
equity ownership interest in TriMas, purchased for cash additional TriMas common
stock. As part of these transactions, TriMas agreed to indemnify MascoTech
against substantially all of the liabilities and obligations of the businesses
transferred to it, and the three companies entered into certain other agreements
described below. As of March 15, 1995 the Company and MascoTech owned 5.3
percent and 41.6 percent, respectively, of outstanding TriMas common stock.
TriMas Corporate Services Agreement
Under a Corporate Services Agreement, the Company provides TriMas and its
subsidiaries with use of the Company's data processing equipment and services,
certain research and development services, corporate administrative staff and
other support services, in return for TriMas' payment of an annual base service
fee of .8 percent of TriMas' consolidated annual net sales, subject to
adjustments. This agreement also provides for various license rights and
confidential treatment of certain information which may arise from the Company's
performance of research and development services on behalf of TriMas. TriMas
paid the Company approximately $3 million in 1994 under this agreement, which is
terminable by TriMas at any time upon at least 90 days notice and by the Company
at the end of any calendar year upon at least 180 days notice.
TriMas Corporate Opportunities Agreement
The Company, MascoTech and TriMas have entered into a Corporate
Opportunities Agreement to address potential conflicts of interest with respect
to future business opportunities. It materially restricts TriMas' ability to
enter into businesses in which the Company or MascoTech are engaged without the
consent of the Company or MascoTech. This agreement will continue in effect
until at least two years after the termination of the TriMas Corporate Services
Agreement and thereafter will be renewed automatically for one-year periods,
subject to termination by any party at least 90 days prior to any such scheduled
renewal date.
14
<PAGE> 17
TriMas Stock Repurchase Agreement
Under a Stock Repurchase Agreement, the Company and MascoTech have the
right to sell to TriMas, at fair market value, shares of TriMas common stock
under certain circumstances that would result in an increase in their respective
ownership of the then outstanding TriMas common stock. The Company and MascoTech
have advised TriMas that they intend to exercise such right whenever necessary
to prevent their ownership of TriMas common stock from equaling or exceeding 20
percent and 50 percent, respectively, of the TriMas common stock then
outstanding, or if the Company or MascoTech then determines such action to be in
its respective best interest.
OTHER RELATED TRANSACTIONS
In 1993, the Company and MascoTech partially restructured their affiliate
relationships through transactions that reduced the Company's common equity
ownership of MascoTech and resulted in MascoTech's acquisition of the Company's
investment in Emco Limited, a major Canadian manufacturer and distributor of
building and energy-related products. As part of the consideration for the
restructuring, the Company received from MascoTech seven-year warrants to
purchase 10 million shares of MascoTech common stock at $13 per share. The
Company may not exercise the warrants if, after giving effect to such exercise,
the Company would own more than 35 percent of the outstanding shares of
MascoTech common stock. The Company also entered into an agreement to purchase
from MascoTech at its option through March 1997 up to $200 million of
subordinated debentures, and in connection therewith MascoTech pays an annual
commitment fee to the Company of $250,000. In addition, MascoTech agreed to file
registration statements under the federal securities laws to enable the Company
from time to time to publicly dispose of securities of MascoTech held by the
Company.
MascoTech GmbH, a German subsidiary of MascoTech, and Masco GmbH, a German
subsidiary of the Company, have from time to time advanced excess funds held in
such foreign country to one another to be used for working capital. The parties
negotiated a fluctuating rate of interest for these loans. The largest amount
outstanding payable to MascoTech GmbH during 1994 was approximately $1.7
million.
TriMas acquired several businesses from the Company in early 1990 and is
obligated to make additional purchase price payments if the combined
profitability of such businesses reaches certain levels. As part of the
transaction, the Company agreed to indemnify TriMas against certain liabilities
of the acquired businesses.
MascoTech and TriMas participate with the Company in a number of national
purchasing programs, which enable each of them to obtain favorable terms from
certain of their service and product suppliers. From time to time, sales of
products and services and other transactions may occur among the Company,
MascoTech and TriMas. During 1994 as a result of such sales and other
transactions, the Company paid approximately $5.5 million and $2.1 million to
MascoTech and TriMas, respectively, and received approximately $.5 million from
MascoTech. In addition, MascoTech paid approximately $3.4 million to TriMas and
TriMas paid approximately $1.9 million to MascoTech for 1994 as a result of such
sales and other transactions.
15
<PAGE> 18
In 1988 the Company and MascoTech jointly established Masco Capital
Corporation to seek business and other investment opportunities of mutual
interest that for various reasons were viewed as more appropriate undertakings
on a joint basis rather than individually. In 1988 Masco Capital made an
investment in Payless Cashways, Inc., a building materials specialty retailer.
In connection with this investment, Payless entered into a multi-year supply
agreement with the Company covering the purchase of certain competitively priced
products of the Company and any affiliate designated by the Company, including
MascoTech. In December 1991, the Company purchased MascoTech's 50 percent
ownership interest in Masco Capital for approximately $49.5 million and may make
additional payments based upon any aggregate net increase in the value of Masco
Capital's remaining investments through late 1995.
As previously disclosed, the Company devised an incentive program to assist
in the retention of corporate officers and senior corporate operating executives
by providing them with the opportunity to purchase in 1989, on a restricted
basis, shares of TriMas common stock owned by the Company. Shares were purchased
by the participants at a price of $11 1/4 per share (all share amounts and per
share prices in this paragraph have been adjusted for the 100 percent common
stock distributions effected by TriMas in 1990 and 1993). Payment of the
purchase price was made in the form of a promissory note from each participant
to the Company, maturing on June 30, 1994 and bearing interest at the rate of 7
percent per annum payable at maturity. The participating executive officers of
the Company purchased TriMas shares as follows, and have paid their promissory
notes: Gerald Bright - 20,000 shares; David A. Doran - 120,000 shares; Ronald L.
Jones - 80,000 shares; Raymond F. Kennedy - 120,000 shares; John R. Leekley -
120,000 shares; Wayne B. Lyon - 200,000 shares; Richard A. Manoogian - 640,000
shares (in addition to 800,000 shares purchased from MascoTech pursuant to a
similar program); Richard G. Mosteller - 200,000 shares; John C. Nicholls -
80,000 shares; Robert B. Rosowski - 40,000 shares; Samuel Valenti, III - 200,000
shares; and David G. Wesenberg - 20,000 shares.
In 1989 the Company made long-term restricted stock awards to a large
number of Company employees that were combined with tandem rights to phantom
TriMas shares. The value of a phantom TriMas share is deemed to be equal to the
value of a share of TriMas common stock. At the time of the grant, the aggregate
value of the shares of Company Common Stock awarded to each participant was
equal to the aggregate value of the alternative phantom TriMas shares that were
awarded. The phantom TriMas shares vest on the same schedule as the shares of
Company Common Stock. On each vesting date the participant receives the benefit
of the then current value of the vesting shares of Company Common Stock or the
then current value of the vesting phantom TriMas shares, whichever is greater.
If the value of the vesting phantom TriMas shares is greater, the participant
receives the vesting shares of the Company Common Stock and the excess is paid
in cash. If the value of the vesting phantom TriMas shares is less, the
participant receives only the vesting shares of Company Common Stock.
The Company has outstanding two loans to Ronald L. Jones, the Company's
President - Home Furnishings Products, originally made to assist in compensating
Mr. Jones for benefits lost when he left his prior employment and for relocation
expenses in joining the Company at its offices in North Carolina. These loans
were reduced by payments of principal and interest from approximately $230,000
in 1994 to $204,000 at the present time. The loans are evidenced by a 5.12
percent demand promissory note in the principal amount of $100,000 and a 7
percent promissory note for the balance.
16
<PAGE> 19
In 1993, as part of its plan to dispose of its energy-related businesses,
MascoTech sold to TriMas Lamons Metal Gasket Co., for a purchase price of $60
million plus additional future payments contingent upon the profitability of
Lamons. As part of the transaction, MascoTech agreed to indemnify TriMas against
certain liabilities of the acquired business.
Subject to certain conditions, TriMas has agreed, upon the request of
MascoTech or the Company, to file registration statements under the federal
securities laws to permit the sale of TriMas common stock in public offerings.
In addition, the Company and MascoTech entered into arrangements with TriMas
pursuant to which TriMas has registered shares of TriMas common stock held by
certain executives of the Company and MascoTech, including Richard A. Manoogian,
under the incentive programs established by such companies which are described
above. TriMas provides indemnification against certain liabilities arising from
such transactions.
Ownership of securities and various other relationships and incentive
arrangements may result in conflicts of interest in the Company's dealings with
MascoTech, TriMas and others. The MascoTech and TriMas Corporate Opportunities
Agreements and other aspects of the relationships among the three companies may
affect their ability to make acquisitions and develop new businesses under
certain circumstances. Four persons affiliated with the Company are members of
MascoTech's Board of Directors and three persons affiliated with the Company are
members of TriMas' Board of Directors. Mr. Manoogian, the Company's Chairman of
the Board and Chief Executive Officer, is also the Chairman of the Board and
Chief Executive Officer of MascoTech and the Chairman of the Board of TriMas and
is a significant stockholder of all of the three companies. Mr. Morgan, who is a
Director of the Company, is also a Director of MascoTech and TriMas, and Mr.
Mosteller, who is an executive officer of the Company, is also a Director of
MascoTech. Mr. Gargaro, an executive officer of the Company, is also a Director
of MascoTech and TriMas. Officers and other key employees of the Company receive
benefits based upon the value of the common stock of the Company, MascoTech and
TriMas under certain Company programs. See "Compensation of Executive Officers."
17
<PAGE> 20
The following table sets forth the number of shares of MascoTech and TriMas
common stock beneficially owned as of March 15, 1995 by the Company's Directors
and named executive officers and by the Directors and executive officers of the
Company as a group:
<TABLE>
<CAPTION>
SHARES OF COMMON
SHARES OF COMMON STOCK OF TRIMAS
STOCK OF MASCOTECH CORPORATION
NAME BENEFICIALLY OWNED BENEFICIALLY OWNED
- ---------------------------------------------------------- ------------------- -------------------
<S> <C> <C>
Dr. Lillian Bauder........................................ 0 0
Ronald L. Jones........................................... 0 800
Raymond F. Kennedy........................................ 4,030 60,000
Erwin L. Koning........................................... 3,000 1,160
Wayne B. Lyon............................................. 38,000 181,484
Richard A. Manoogian...................................... 4,931,142 1,801,852
John A. Morgan............................................ 24,000 8,000
Richard G. Mosteller...................................... 1,000 0
Arman Simone.............................................. 10,000 2,880
Peter W. Stroh............................................ 0 0
All 19 Directors and executive officers of the Company as
a group (excluding subsidiary, divisional and group
executives)............................................. 5,155,172 2,344,326
</TABLE>
The only Director or executive officer of the Company who beneficially owns
one percent or more of MascoTech or TriMas common stock is Mr. Manoogian, who
owns 8.6 percent of MascoTech common stock and 4.9 percent of TriMas common
stock. Directors and executive officers of the Company as a group own 9.0
percent of MascoTech common stock and 6.4 percent of TriMas common stock. Shares
beneficially owned by Mr. Manoogian and by Directors and executive officers of
the Company as a group include in each case 202,560 shares of MascoTech common
stock and 33,008 shares of TriMas common stock owned by the charitable
foundations in which Mr. Manoogian is a Director, and 225,806 shares of
MascoTech common stock which could be acquired upon conversion of convertible
debt securities owned by the foundations. In addition, Mr. Manoogian may be
deemed to be the beneficial owner of 200,000 shares of MascoTech's $1.20
Convertible Preferred Stock (1.9 percent of the total issue outstanding) owned
by one of the charitable foundations, and Mr. Kennedy owns 5,000 shares of
MascoTech's preferred stock. Shares owned by Mr. Manoogian, Mr. Kennedy, and by
all Directors and executive officers of the Company as a group include 161,200
shares, 4,030 shares and 165,230 shares, respectively, of MascoTech common stock
into which such preferred stock is convertible. Shares owned by Mr. Lyon and by
all Directors and executive officers of the Company as a group include in each
case 2,000 shares of MascoTech common stock and 7,184 shares of TriMas common
stock owned by a charitable foundation of which Mr. Lyon is a Director. Shares
owned by all Directors and executive officers of the Company as a group include
27,000 shares of MascoTech common stock and 6,284 shares of TriMas common stock
owned by trusts of which an executive officer is a trustee. Shares owned by Mr.
Simone and by all Directors and executive officers of the Company as a group
include 10,000 shares of MascoTech common stock owned by a charitable
organization of which Mr. Simone is a Director. The Directors of the foundations
and the charitable organization and the trustee exercise voting and investment
power with respect to the MascoTech and TriMas securities owned by such
foundations, the
18
<PAGE> 21
charitable organization and trusts, and Messrs. Manoogian, Simone and Lyon, and
the executive officer who is trustee for the trusts, disclaim beneficial
ownership of such securities.
Shares are owned with sole voting and investment power, except for shares
owned by such foundations, the charitable organization and trusts, shares of
MascoTech issuable upon conversion of preferred stock or convertible debt
securities, shares of MascoTech issuable under stock options that are
exercisable prior to May 15, 1995 (840,000 shares for both Mr. Manoogian and all
Directors and executive officers of the Company as a group), and unvested
restricted shares of MascoTech common stock issued under the Company's
(Industries) Plan, (70,000 shares for Mr. Manoogian and 79,600 shares for all
Directors and executive officers of the Company as a group) and under
MascoTech's Restricted Stock Incentive Plan (26,320 shares for both Mr.
Manoogian and all Directors and executive officers of the Company as a group).
STOCKHOLDERS' PROPOSALS
Stockholders' proposals intended to be presented at the 1996 Annual Meeting
of Stockholders of the Company must be received by the Company at its address
stated above by December 22, 1995, to be considered for inclusion in the
Company's Proxy Statement and Proxy relating to such meeting.
INDEPENDENT ACCOUNTANTS
The firm of Coopers & Lybrand L.L.P. has acted as the Company's independent
accounting firm for a number of years and is so acting during the current year.
Representatives of Coopers & Lybrand L.L.P. are expected to be present at the
meeting, will have the opportunity to make a statement and are expected to be
available to respond to appropriate questions.
OTHER MATTERS
The Board of Directors knows of no other matters to be voted upon at the
meeting. If any other matters properly come before the meeting, it is the
intention of the proxies named in the enclosed Proxy to vote the shares
represented thereby with respect to such matters in accordance with their best
judgement.
By Order of the Board of Directors
EUGENE A. GARGARO, JR.
Secretary
Taylor, Michigan
April 18, 1995
19
<PAGE> 22
MASCO'S
ANNUAL MEETING OF STOCKHOLDERS
AT MASCO CORPORATE HEADQUARTERS
21001 VAN BORN ROAD
TAYLOR, MICHIGAN 48180
Meeting Location Map
[MAP]
Directions to Masco Corporation Headquarters
FROM DOWNTOWN DETROIT (EAST)
- - Take I-94 west to the Pelham Road exit.
- - Turn right onto Pelham Road and travel to Van Born Road.
- - Turn left onto Van Born Road and proceed to the corporate office.
FROM METRO AIRPORT (WEST)
- - Take I-94 east to Pelham/Southfield Road exit.
- - Turn left onto Pelham and travel to Van Born Road.
- - Turn left onto Van Born Road and proceed to the corporate office.
FROM SOUTHFIELD/BIRMINGHAM (NORTH)
- - Take the Southfield Freeway to the Outer Drive/Van Born Road exit.
- - Stay on the service drive and proceed to Van Born Road.
- - Bear right onto Van Born Road and travel to the corporate office.
FROM TOLEDO (SOUTH)
- - Take I-75 north to the Telegraph Road north exit.
- - Proceed on Telegraph Road north to Van Born Road.
- - Turn right on Van Born Road and proceed to the corporate office.
<PAGE> 23
<TABLE>
<S><C>
(1) Election of Directors FOR all nominees [X] WITHHOLD AUTHORITY to vote [X] EXCEPTIONS [X]
listed below for all nominees listed below
Nominees as Class I directors. If elected, the nominees will serve until the 1998 Annual Meeting of Stockholders or until their
respective successors are elected and qualified:
WAYNE B. LYON, ARMAN SIMONE AND PETER W. STROH
(INSTRUCTIONS: To withhold authority to vote for any individual nominee, mark the "Exceptions" box and strike a line through that
nominee's name.)
(2) In their discretion upon such other business as may properly come before the meeting.
The shares represented by this Proxy will be voted in accordance with the specifications above. IF SPECIFICATIONS ARE NOT MADE, THE
PROXY WILL BE VOTED FOR THE ELECTION OF ALL NOMINEES.
Change of Address or [X]
Comments Mark Here
Please sign exactly as name appears at left. Executors, administrators,
trustees, et al, should so indicate when signing. If the signature is
for a corporation, please sign the full corporate name by an authorized
officer. If the signature is for a partnership, please sign the full
partnership name by an authorized person. If shares are registered in
more than one name, all holders must sign.
Dated: __________________________________________________, 1995
_________________________________________________________ (L.S.)
Signature
_________________________________________________________ (L.S.)
Signature
VOTES MUST BE INDICATED [X]
(X) IN BLACK OR BLUE INK.
Please sign, date and return the proxy card promptly using the enclosed envelope.
____________________________________________________________________________________________________________________________________
PROXY FOR ANNUAL MEETING OF STOCKHOLDERS TO BE HELD MAY 17, 1995
MASCO CORPORATION
PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned, hereby revoking any Proxy heretofore given, appoints RICHARD A. MANOOGIAN and EUGENE A. GARGARO, JR. and
each of them attorneys and proxies for the undersigned, each with full power of substitution, to vote the shares of Company Common
Stock registered in the name of the undersigned to the same extent the undersigned would be entitled to vote if then personally
present at the Annual Meeting of Stockholders of Masco Corporation to be held at the offices of the Company at 21001 Van Born Road,
Taylor, Michigan 48180, on Wednesday, May 17, 1995 at 10:00 A.M. Eastern daylight time and at any adjournment thereof.
The undersigned hereby acknowledges receipt of the accompanying Notice of Annual Meeting of Stockholders and Proxy
Statement.
(Continued and to be dated and signed on the reverse side.)
MASCO CORPORATION
P.O. BOX 11531
NEW YORK, N.Y. 10203-0531
</TABLE>
