CORRECTIONS CORPORATION OF AMERICA - FORM 8-K
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 21, 2006 (February 15, 2006)
Corrections Corporation of America
 
(Exact name of registrant as specified in its charter)
         
Maryland   001-16109   62-1763875
         
(State or Other Jurisdiction of Incorporation)   (Commission File Number)   (I.R.S. Employer
        Identification No.)
10 Burton Hills Boulevard, Nashville, Tennessee 37215
 
(Address of principal executive offices) (Zip Code)
(615) 263-3000
 
(Registrant’s telephone number, including area code)
Not Applicable
 
(Former name or former address, if changed since last report)
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


TABLE OF CONTENTS

Item 1.01. Entry Into a Material Definitive Agreement.
Item 9.01. Financial Statements and Exhibits.
SIGNATURE
EX-99.1 FORM OF RESTRICTED STOCK AGREEMENT
EX-99.2 FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT


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Item 1.01. Entry Into a Material Definitive Agreement.
     On February 15, 2006, after consideration of presentations and recommendations of management and independent compensation consultants, and such other matters and information as deemed appropriate, the Compensation Committee (the “Committee”) of the Board of Directors of Corrections Corporation of America (the “Company”) approved resolutions with respect to the following actions:
     Fiscal 2005 Performance Bonuses. The fiscal 2005 performance bonuses for the Company’s named executive officers were approved as follows, based, in part, upon the achievement of specified performance objectives based upon the Company’s earnings per share:
                 
Name   Title   Bonus Amount
John D. Ferguson
  Chief Executive Officer and President
  $ 677,727  
Irving E. Lingo, Jr.
  Executive Vice President, Chief Financial Officer and Assistant Secretary
  $ 338,864  
Kenneth A. Bouldin
  Executive Vice President and Chief Development Officer
  $ 293,059  
Richard P. Seiter
  Executive Vice President and Chief Corrections Officer
  $ 269,983  
G. A. Puryear IV
  Executive Vice President, General Counsel and Secretary
  $ 223,063  
     Fiscal 2006 Base Salaries. The base salary levels, effective April 1, 2006, of the persons who are anticipated to constitute the Company’s named executive officers for 2006 were set as follows:
                         
            2006 Base   2005 Base
Name   Title   Salary   Salary
John D. Ferguson
  Chief Executive Officer and President
  $ 700,000     $ 683,100  
Irving E. Lingo, Jr.
  Executive Vice President, Chief Financial Officer and Assistant Secretary
  $ 353,500     $ 341,550  
Kenneth A. Bouldin
  Executive Vice President and Chief Development Officer
  $ 310,500     $ 300,000  
Richard P. Seiter
  Executive Vice President and Chief Corrections Officer
  $ 290,000     $ 270,000  
G. A. Puryear IV
  Executive Vice President, General Counsel and Secretary
  $ 240,000     $ 230,000  
     2006 Cash Bonus Plan. The Company’s 2006 Cash Bonus Plan is intended to provide incentives to members of management, including the Company’s named executive officers, in the form of cash bonus payments for achieving certain performance goals established by the Committee. The performance awards will be based upon achievement of established earnings per share goals. Actual awards can range from zero to a maximum of 150% of such participant’s base salary. The Committee will administer and make all determinations under the Cash Bonus Plan.

 


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     Restricted Stock and Stock Option Awards to Named Executive Officers. Restricted shares of the Company’s common stock and non-qualified options for the purchase of the Company’s common stock were granted to the persons who are anticipated to constitute the named executive officers of the Company for 2006, pursuant to the Company’s 2000 Stock Incentive Plan (the “2000 Plan”), as follows:
                         
                    Shares Subject
            Number of   to
Name   Title   Restricted Shares   Option Grant
John D. Ferguson
  Chief Executive Officer and President
    15,600       43,000  
Irving E. Lingo, Jr.
  Executive Vice President, Chief Financial Officer and Assistant Secretary
    7,800       21,500  
Kenneth A. Bouldin
  Executive Vice President and Chief Development Officer
    7,800       21,500  
Richard P. Seiter
  Executive Vice President and Chief Corrections Officer
    7,800       21,500  
G. A. Puryear IV
  Executive Vice President, General Counsel and Secretary
    6,425       17,700  
     The shares of restricted stock are subject to vesting over a three year period based upon satisfaction of certain performance criteria for the fiscal years ending December 31, 2006, 2007 and 2008 as established by the Committee. No more than one third of such shares may vest in the first performance period; however, the performance criteria are cumulative for the three year period. Notwithstanding the foregoing, the shares of restricted stock will become fully vested upon the occurrence of death, Disability, or a Change in Control of the Company (each such condition as defined in the 2000 Plan). The restricted stock awards are subject to the terms of the 2000 Plan and the individual award agreements substantially in the form of Exhibit 99.1 attached hereto and incorporated by reference herein. The stock options shall vest in equal one third increments as of the first, second and third anniversary dates of the grant date, subject to acceleration as contemplated by the 2000 Plan. The options are subject to the terms of the 2000 Plan and the individual award agreements substantially in the form of Exhibit 99.2 attached hereto and incorporated by reference herein. The exercise price per share of the shares subject to the option grants is $42.81, the reported closing price on the NYSE Composite Tape on February 14, 2006.
Item 9.01. Financial Statements and Exhibits.
     (d) Exhibits.
     99.1 Form of Restricted Stock Agreement.
     99.2 Form of Non-Qualified Stock Option Agreement.

 


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SIGNATURE
     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
         
Date: February 21, 2006  CORRECTIONS CORPORATION OF AMERICA
 
 
  By:   /s/ Irving E. Lingo, Jr.    
    Irving E. Lingo, Jr.   
    Executive Vice President and
Chief Financial Officer