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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))
[ ] Definitive proxy statement
[X] Definitive additional materials
[ ] Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12
USG Corporation
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(Name of Registrant as Specified in Its Charter)
USG Corporation
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of filing fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
- --------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee
is calculated and state how it was determined):
- --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
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(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:
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(2) Form, schedule or registration statement no.:
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(3) Filing party:
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(4) Date filed:
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USG Corporation Logo
April 21, 2000
Dear Fellow Stockholder:
We recently sent to you proxy material for our Annual Meeting of Stockholders to
be held on May 10, 2000.
While I realize our proxy material may have only recently been received (along
with that of many other companies this time of year), I urge you to help your
company avoid the additional expense of further solicitation by signing, dating
and returning the enclosed form of proxy today.
Thank you for your cooperation.
Very truly yours,
/s/ William C. Foote
William C. Foote
Chairman of the Board
If your have any questions, or need assistance in the voting
of your shares, please call our proxy solicitor,
INNISFREE M&A INCORPORATED
TOLL-FREE, AT 1-888-750-5834.
IMPORTANT NOTE:
IF YOU HOLD YOUR SHARES THROUGH A BANK OR BROKER,
YOU MAY BE ABLE TO VOTE BY TELEPHONE, OR VIA THE INTERNET.
PLEASE CALL INNISFREE AT 888-750-5834 FOR ASSISTANCE.
USG 2-LINE ADDRESS
<PAGE> 3
USG CORPORATION
SCHEDULE A
PARTICIPANTS IN THE SOLICITATION AND OTHER INFORMATION
Under applicable regulations of the Securities and Exchange Commission,
each member of the board of directors and certain executive officers and other
employees of USG Corporation (the "Corporation" or "USG"), may be deemed to be a
"participant" in the Corporation's solicitation of proxies. In addition to the
information set forth in the Corporation's proxy statement dated April 7, 2000
that was previously mailed to you (the "Proxy Statement"), certain information
regarding the participants and the Corporation's solicitation of proxies is set
forth in this Schedule A.
INFORMATION CONCERNING THE DIRECTORS AND CERTAIN EXECUTIVE OFFICERS AND
EMPLOYEES OF THE CORPORATION AND OTHER PARTICIPANTS WHO MAY ALSO SOLICIT PROXIES
The following tables set forth the name, principal business address and the
present office or other principal occupation or employment, and the name,
principal business and the address of any corporation or other organization in
which such employment is carried on, of the directors and certain executive
officers and employees of the Corporation and other representatives of the
Corporation who may also solicit proxies from stockholders of the Corporation.
Unless otherwise indicated, the principal occupation refers to such person's
position with the Corporation and the business address is USG Corporation, 125
South Franklin Street, Chicago, Illinois 60606.
DIRECTORS
The principal occupations of the Corporation's directors, who are deemed
participants in the solicitation, are set forth on pages 5, 6 and 7 of the Proxy
Statement and each such person's name and business address are as follows:
<TABLE>
<CAPTION>
NAME PRINCIPAL BUSINESS ADDRESS
---- --------------------------
<S> <C>
Robert L. Barnett..................... Motorola Corporation
1301 East Algonquin Road
Schaumburg, Illinois 60196
Keith A. Brown........................ Chimera Corporation
30400 Detroit Road
Suite 203
Westlake, Ohio 44145
W.H. Clark............................ W. "H." Clark Associates, Ltd.
Suite 2222
Two First National Plaza
20 South Clark Street
Chicago, Illinois 60603
James C. Cotting...................... 417 Dana Lane
Barrington Hills, Illinois 60010
Lawrence M. Crutcher.................. Veronis Suhler
350 Park Avenue
7th Floor
New York, New York 06830
William C. Foote...................... USG Corporation
125 South Franklin Street
Chicago, Illinois 60606
</TABLE>
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<TABLE>
<CAPTION>
NAME PRINCIPAL BUSINESS ADDRESS
---- --------------------------
<S> <C>
W. Douglas Ford....................... BP Amoco p.l.c.
Brittanic House
Finsbury Circus
London EC2M 7BA
David W. Fox.......................... One First National Plaza
21 South Clark Street
Suite 2530
Chicago, Illinois 60603
Valerie B. Jarrett.................... The Habitat Company
350 West Hubbard Street
5th Floor
Chicago, Illinois 60610
Marvin E. Lesser...................... 501 Islington Street
Third Floor
Portsmouth, New Hampshire 03801
P. Jack O'Bryan....................... USG Corporation
125 South Franklin Street
Chicago, Illinois 60606
John B. Schwemm....................... 2 Turvey Lane
Downers Grove, Illinois 60515
Judith A. Sprieser.................... Sara Lee Corporation
Three First National Plaza
Chicago, Illinois 60602
</TABLE>
EXECUTIVE OFFICERS, MANAGEMENT AND OTHER EMPLOYEES
The principal occupations of certain of the Corporation's executive
officers or certain other members of management or of the Corporation who may be
deemed participants in the solicitation are set forth below. The principal
business address of each of such person is that of the Corporation.
<TABLE>
<CAPTION>
NAME PRINCIPAL OCCUPATION
---- --------------------
<S> <C>
Raymond T. Belz....................... Senior Vice President and Controller
James R. Bencomo...................... Director, Investor Relations
Edward M. Bosowski.................... Vice President
Richard H. Fleming.................... Executive Vice President and Chief
Financial Officer
William C. Foote...................... Chairman of the Board, President and
Chief Executive Officer
Marci N. Kaminsky..................... Vice President, Communications
John H. Meister....................... Vice President
James S. Metcalf...................... Vice President
</TABLE>
INFORMATION REGARDING OWNERSHIP OF THE CORPORATION'S SECURITIES BY PARTICIPANTS
The number of shares of Common Stock held by directors and certain
executive officers is set forth on page 10 of the Proxy Statement. James R.
Bencomo, a USG employee who may be deemed a participant, beneficially owns 2,820
shares of the Corporation's Common Stock and has the right to acquire 2,000
shares through exercise of a nonqualified stock option (see footnote 11 below).
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INFORMATION REGARDING TRANSACTIONS IN THE CORPORATION'S SECURITIES BY
PARTICIPANTS
The following table sets forth purchases and sales of the Corporation's
Common Stock by the participants listed below during the period January 1, 1998
through March 31, 2000. Unless otherwise indicated, all transactions are in the
public market.
<TABLE>
<CAPTION>
NUMBER OF SHARES
NAME TRANSACTION DATE ACQUIRED OR (DISPOSED) FOOTNOTE
---- ---------------- ---------------------- --------
<S> <C> <C> <C>
Robert L. Barnett............................ 10/01/99 130 1
07/01/99 500 2
09/25/98 140 1
07/01/98 500 2
Raymond T. Belz.............................. 02/09/00 1,516 6
02/09/00 6,000 5
08/11/99 5,000 5
02/10/99 1,342 6
02/01/99 (20,000) 10
06/11/98 3,000 5
05/05/98 68 4
01/23/98 (10,000) 10
10/01/99 130 10
01/01/98 - 03/31/00 4,741 8
01/01/98 - 03/31/00 21,000 11
Edward M. Bosowski........................... 02/09/00 1,678 6
02/09/99 11,000 5
01/02/98 8,000 5
01/01/98 - 03/31/00 6,240 8
01/01/98 - 03/31/00 53,500 11
Keith A. Brown............................... 10/01/99 130 1
07/01/99 500 2
09/25/98 140 1
07/01/98 500 2
W. H. Clark.................................. 10/01/99 130 1
07/01/99 500 2
09/25/98 140 1
07/01/98 500 2
James C. Cotting............................. 09/25/99 130 1
09/25/98 140 2
07/28/98 - 03/15/00 1,012 3
Lawrence M. Crutcher......................... 10/01/99 130 1
07/01/99 500 2
09/25/98 140 1
07/01/98 500 2
</TABLE>
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<TABLE>
<CAPTION>
NUMBER OF SHARES
NAME TRANSACTION DATE ACQUIRED OR (DISPOSED) FOOTNOTE
---- ---------------- ---------------------- --------
<S> <C> <C> <C>
Richard H. Fleming........................... 02/09/00 12,000 5
02/09/00 3084 6
04/22/99 7,024 7
02/10/99 12,000 5
02/10/99 3,377 6
02/11/98 258 4
02/11/98 10,000 5
02/23/98 6,634 7
01/01/98 - 03/31/00 205 8
01/01/98 - 03/31/00 118,000 11
William C. Foote............................. 02/09/00 30,000 5
02/09/00 8,392 6
12/22/99 (400) 9
02/10/99 30,000 5
02/01/99 4,451 7
03/02/99 (5,000) 9
04/23/99 (50) 9
12/23/98 (400) 9
01/01/98 - 03/31/00 3,169 8
01/01/98 - 03/31/00 155,000 11
W. Douglas Ford.............................. 10/01/99 130 1
07/01/99 500 2
09/25/98 140 1
07/01/98 500 2
David W. Fox................................. 10/01/99 130 1
07/01/99 500 2
09/25/98 140 1
07/01/98 500 2
Valerie B. Jarrett........................... 09/25/98 75 1
04/01/99 - 03/15/00 1,285 3
Marci N. Kaminsky............................ 02/09/00 5,000 5
02/10/99 5,000 5
10/05/98 5,000 5
01/01/98 - 03/31/00 0 11
Marvin E. Lesser............................. 01/04/99 - 03/15/00 1,775 3
James S. Metcalf............................. 02/09/99 5,000 5
01/02/99 5,000 5
01/02/98 3,000 5
01/02/98 2,000 5
01/01/98 - 01/01/00 3,491 8
01/01/98 - 03/31/00 20,000 11
John H. Meister.............................. 02/09/00 3,000 12
02/09/00 10,000 5
01/02/99 6,000 5
01/02/98 5,000 5
01/02/98 3,000 5
01/01/98 - 03/31/00 3,711 8
01/01/98 - 03/31/00 52,500 11
</TABLE>
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<TABLE>
<CAPTION>
NUMBER OF SHARES
NAME TRANSACTION DATE ACQUIRED OR (DISPOSED) FOOTNOTE
---- ---------------- ---------------------- --------
<S> <C> <C> <C>
P.J. O'Bryan................................. 02/09/00 20,000 5
02/09/00 6,755 6
05/07/99 (13,500) 10
05/10/99 (16,500) 10
02/10/99 20,000 5
02/10/99 4,728 6
022/09/98 (20,000) 10
02/10/98 831 4
01/01/98 - 03/31/00 26,650 8
John B. Schwemm.............................. 10/01/99 130 1
07/01/99 500 2
09/25/98 140 1
07/01/98 500 2
03/18/98 25 4
Judith A. Sprieser........................... 10/01/99 130 1
07/01/99 500 2
09/25/98 140 1
07/01/98 500 2
</TABLE>
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(1) Quarterly retainer paid in Common Stock.
(2) Annual Common Stock grant.
(3) Deferral of meeting fees, annual Common Stock grants, and dividends thereon
into "Phantom Shares."
(4) Conversion of warrants into Common Stock.
(5) Grant of restricted or performance based restricted stock.
(6) Acquisition of Common Stock (after withholding of such shares to satisfy
tax obligation) by operation of time and/or performance criteria of
previously restricted or performance based restricted shares.
(7) Acquisition of Common Stock (after withholding of grant price and tax
obligation) by exercise of nonqualified stock option.
(8) Acquisition of Common Stock through a company sponsored acquisition plan.
(9) Bona fide gift.
(10) Disposition of Common Stock by a "cashless" nonqualified stock option
exercise.
(11) Nonqualified stock option shares exercisable within 60 days of the March
15, 2000, annual meeting record date.
(12) Acquisition of Common Stock (tax obligation satisfied in cash) by operation
of time and/or performance criteria of previously restricted or performance
based restricted shares.
SOLICITATION OF PROXIES
As described in the Proxy Statement, the Corporation has retained Innisfree
M&A Incorporated ("Innisfree") to assist in the solicitation of the proxies. The
Corporation has also agreed to indemnify Innisfree for certain liabilities in
connection with this solicitation. Approximately 75 persons will be employed by
Innisfree to solicit stockholders.
The entire cost of soliciting the proxies (including, without limitation,
costs, if any, relating to advertising, printing, fees of attorneys, proxy
solicitors, accountants, transportation, litigation and related expenses and
filing fees, but not including such costs represented by the amount normally
expended for a solicitation for an election of directors in the absence of a
contest and costs represented by salaries and wages of regular employees and
officers) will be borne by the Corporation. The Corporation estimates that total
expenditures relating to the Board's solicitation of the proxies will be
approximately $150,000. Approximately $750,000 has been expended by the
Corporation to date.
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MISCELLANEOUS INFORMATION CONCERNING PARTICIPANTS
Except as described in this Schedule A or in the Proxy Statement, to the
knowledge of the Corporation, none of the participants nor any of their
respective affiliates or associates (together, the "Participant Affiliates"),
(1) directly or indirectly beneficially own any shares of Common Stock of the
Corporation or any securities of any subsidiary of the Corporation or (2) has
had any relationship with the Corporation in any capacity other than as a
stockholder, employee, officer and director. Furthermore, except as described in
this Schedule A or in the Proxy Statement, to the knowledge of the Corporation,
no Participant Affiliate is either a party to any transaction or series of
transactions since January 1, 1999, or has knowledge of any currently proposed
transaction or series of transactions, (1) to which the Corporation or any of
its subsidiaries was or is to be a party, (2) in which the amount involved
exceeds $60,000, and (3) in which any Participant Affiliate had, or will have, a
direct or indirect material interest.
Except for the employment agreements described in the Proxy Statement, to
the knowledge of the Corporation, no Participant Affiliate has entered into any
agreement or understanding with any person respecting any future employment by
the Corporation or its affiliates or any future transactions to which the
Corporation or any of its affiliates will or may be a party. Except as described
in this Schedule A or in the Proxy Statement, there are no contracts,
arrangements or understandings by any Participant Affiliate within the past year
with any person with respect to the Corporation's securities.
A-6
