This excerpt taken from the MTW DEF 14A filed Apr 7, 2006.
The Compensation Committee provides assistance to the Board of Directors in fulfilling its responsibility to achieve the Companys purpose of maximizing the long-term total return to shareholders by ensuring that officers, directors, and employees are compensated in accordance with the Companys philosophy, objectives, and policies. The Compensation Committee reviews and approves compensation and benefits policies, strategies, and
pay levels necessary to support corporate objectives and provides an annual report on executive compensation for inclusion in the Companys Proxy Statement, in accordance with applicable rules and regulations. A copy of the Compensation Committee Charter can be viewed at on the Companys website at www.manitowoc.com and is available in print to any shareholder who requests a copy.
There were six meetings of the Compensation Committee during fiscal year ended December 31, 2005. For further information see the Compensation Committee Report below.
The purpose of the Corporate Governance Committee is to assist the Board in its corporate governance responsibilities, including to identify individuals qualified to become Board members, to recommend to the Board for the Boards selection director nominees, and to recommend to the Board the corporate governance principles and guidelines. The Corporate Governance Committee has adopted the following policies and procedures regarding consideration of candidates for the Board.
Consideration of Candidates for the Board of Directors Submitted by Shareholders. The Corporate Governance Committee will only review recommendations for director nominees from any shareholder beneficially owning, or group of shareholders beneficially owning in the aggregate, at least 5% of the issued and outstanding common stock of the Company for at least one year as of the date that the recommendation was made (a Qualified Shareholder). Any Qualified Shareholder must submit its recommendation no later than the 120th calendar day before the date of the Companys proxy statement released to the shareholders in connection with the previous years annual meeting, for the recommendation to be considered by the Corporate Governance Committee. Any recommendation must be submitted in accordance with the policy in the Corporate Governance Guidelines captioned Shareholder Communications to the Board of Directors. In considering any timely submitted recommendation from a Qualified Shareholder, the Corporate Governance Committee shall have sole discretion as to whether to nominate the individual recommended by the Qualified Shareholder, except that in no event will a candidate recommended by a Qualified Shareholder who is not independent as defined in the Companys Corporate Governance Guidelines and who does not meet the minimum expectations for a director set forth in the Companys Corporate Governance Guidelines, be recommended for nomination by the Corporate Governance Committee.
The Corporate Governance Committee did not receive prior to the deadline noted in the foregoing policy, any recommendations for director nominees from any Qualified Shareholder (as defined in the foregoing policy).
Consideration of Candidates for Board that are Incumbent Directors. The process of evaluating directors for re-election will include a peer review of each director wishing to stand for re-election at the expiration of his/her current term. This will be done by circulation of a questionnaire to all other directors to be completed in essay form or by verbal response to an independent third party. The independent third party professional consultant will review all responses and summarize the conclusions on an anonymous basis for the Corporate Governance Committee. This consultant will then review the results on an individual and confidential basis with each of the candidates. The Corporate Governance Committee may also interview each candidate individually. The Corporate Governance Committee will make a recommendation to the Board for the Boards final decision on each candidate seeking re- election. The Corporate Governance Committee shall have sole authority to retain and terminate any search firm to be used to identify director candidates and any independent third party professional consultant used in the evaluation process for directors wishing to stand for re-election. Such authority shall include the sole authority to approve the search firms and third party professionals fees and other retention terms.
Consideration of Candidates for Board that are Non-incumbent Directors. In the event of a vacancy in the Board of Directors that the Corporate Governance Committee anticipates will not be filled by an incumbent director, the Corporate Governance Committee will manage the process of searching for a suitable director. The Corporate Governance Committee will be free to use its judgement in structuring and carrying out the search process based on the Corporate Governance Committees and the Boards perception as to what qualifications would best suit the Boards needs for each particular vacancy. The process may include the consideration of candidates recommended by officers, Board members, shareholders, and/or a third party professional search firm retained by the Corporate
Governance Committee. The Corporate Governance Committee shall have sole authority to retain and terminate any third party to be used to identify director candidates and/or evaluate any director candidates. Any candidate should meet the expectations for directors set forth in the Companys Corporate Governance Guidelines. Strong preference should be given to candidates who are independent as that term is defined in the Corporate Governance Guidelines and the New York Stock Exchange rules and to candidates who are sitting or former CEOs or CFOs of companies whose securities are listed on a national securities exchange and registered pursuant to the Securities Exchange Act of 1934. The Corporate Governance Committee is not required to consider candidates recommended by a shareholder except in accordance with the Policy captioned Consideration of Candidates for the Board of Directors Submitted by Shareholders, set forth in the Corporate Governance Committee Charter. If the Corporate Governance Committee determines to consider a candidate recommended by a shareholder, the Committee will be free to use its discretion and judgment as to what deference will be given in considering any such candidate.
Shareholder Communications. The Corporate Governance Committee has adopted a process for shareholders to send communications to the Board. That process is included in the Companys Corporate Governance Guidelines which are attached as Appendix A and which may be viewed on the Companys website at www.manitowoc.com.
The purpose of the Audit Committee is to (A) assist the Board of Directors in fulfilling its oversight of (1) the integrity of the Companys financial statements, (2) the Companys compliance with legal and regulatory requirements; (3) the independent auditors qualifications and independence, (4) the performance of the Companys internal audit function and independent auditors, (5) the Companys compliance with ethical standards established by law, rule, regulation, and Company policy, and (6) the Companys disclosure processes and procedures; and (B) prepare the report that SEC rules require be included in the Companys annual proxy statement.
In connection with its function to oversee and monitor the financial reporting process of the Company, the Audit Committee has done the following:
Based on the foregoing, the Audit Committee recommended to the Board of Directors that the audited financial statements be included in the Companys annual report on Form 10-K for the fiscal year ended December 31, 2005.
This excerpt taken from the MTW DEF 14A filed Apr 12, 2005.
Robert S. Throop, Chairman
Virgis W. Colbert
James L. Packard
The following graph sets forth the cumulative total shareholder return, including reinvestment of dividends on a quarterly basis, on Common Stock during the preceding five fiscal years, as compared to the cumulative total returns of the Standard and Poors (S&P) 500 Composite Stock Index and the S&P 600 Industrial Machinery Index. The graph assumes $100 was invested on December 31, 1999 in Common Stock, the S&P 500 Composite Stock Index and the S&P 600 Industrial Machinery Index.