DEFA14A 1 tsc-4232021proxyaddlmateri.htm DEFA14A Document

Washington, D.C. 20549


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Item 8.01 Other Events

At the TriState Capital Holdings, Inc. Annual Meeting of Shareholders on May 17, 2021, the Company’s Board of Directors recommends voting FOR Proposal 4 (“the Plan Proposal”), which seeks approval to amend the Company’s Omnibus Incentive Plan (the “Plan”) to (i) increase the number of authorized shares of common stock issuable under the Plan and (ii) clarify the persons eligible for awards under the Plan to facilitate the grant of director equity awards, other than stock options, to any person or entity with the contractual right to representation on the Board of Directors. The proposed amendment to the Plan consists of an increase to the maximum number of shares authorized for issuance under the Plan by 800,000 to 5,800,000 shares.

The Company is providing the following supplemental information to help shareholders evaluate the Plan Proposal.

The Company is providing additional clarifying information regarding the large portion of its equity allocations that have been made on a value-neutral basis in lieu of cash incentive payments that were otherwise earned for the years ended December 31, 2018 through December 31, 2020 and for the three months ended March 31, 2021. For this purpose, Figure 1 below separates cash-settled awards and stock-in-lieu of cash compensation (value neutral/value for value), which was originally reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 as part of a combined figure along with grants of equity. Going forward, the Company will provide the information in Figure 1 in its proxy filings.

The Company is also affirming that as of March 31, 2021, the Company had 413,384 shares available for grant remaining in the Plan. This accounts for shares issued in 2021, predominantly in connection with the 2020 annual incentive plan settlement and related issuance of restricted shares both in lieu of cash payments, as well as other annual equity compensation grants. This remaining number of shares is significantly lower than the shares available for grant remaining as of December 31, 2020, which was prior to the Company’s annual incentive plan settlement and related issuance of restricted shares related to 2020. Ultimately, this reduced number of shares available results in a lower Shareholder Value Transfer (“SVT”) calculation, cost of plan assessment, and Burn Rate under the Plan.

As of March 31, 2021, the Company had 288,620 outstanding stock options with a weighted average exercise price of $11.00 and weighted average remaining contractual life of two months. In addition, as of March 31, 2021, the Company had 1,888,689 outstanding restricted shares which had a weighted average remaining amortization period of 2.32 years.

Figure 1 below provides the year by year Full Value Awards by specifically showing and subtracting the number of shares that were issued in lieu of cash in the applicable period, as well as the applicable Burn Rate.

Figure 1. Stock-in-Lieu of CashJan. 1, 2021 -
March 31, 2021
Total restricted shares awarded585,386 638,832 580,453 423,113 
Less restricted stock-in-lieu of cash299,281 301,407 313,796 187,613 
Full value awards286,105 337,425 266,657 235,500 
Full value awards/total restricted shares awarded (%)48.87 %52.82 %45.94 %55.66 %
Weighted average common shares outstanding33,045,897 29,810,344 29,308,983 28,924,765 
Unadjusted burn rate0.87 %1.13 %0.91 %0.81 %
Three year average0.95 %

Using this updated current number of shares available for grant and clarified information about the portion of the equity allocation that has historically been comprised of value neutral stock-in-lieu of cash, Figure 2 below illustrates the adjustments

to the calculation of new + existing shares available for grant and on the calculation of net granted unexercised/unvested shares, as well as basic and full dilution.

Figure 2. Omnibus Incentive PlanShare CountBasic DilutionFull Dilution
Shares outstanding33,160,605 
New shares requested under plan amendment800,000 2.41 %2.26 %
Existing shares available for grant413,384 1.25 %1.17 %
New + existing shares available for grant1,213,384 3.66 %3.42 %
Outstanding and unexercised stock options288,620 
Outstanding and unvested restricted shares1,888,689 
Gross granted unexercised/unvested shares2,177,309 
Less stock issued in lieu of cash (1/1/2018 - 3/31/2021)1,102,097 
Granted unexercised/unvested shares1,075,212 3.24 %3.03 %
Total share allocation2,288,596 6.90 %6.46 %
Fully diluted shares35,449,201