WESBANCO, INC. One Bank Plaza Wheeling, West Virginia 26003
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WESBANCO, INC. One Bank Plaza Wheeling, West Virginia 26003 NOTICE OF ANNUAL MEETING OF STOCKHOLDERS To Be Held April 22, 2020 TO THE STOCKHOLDERS OF WESBANCO, INC.: The Annual Meeting of the Stockholders of Wesbanco, Inc. (“Wesbanco”) will be held in the Glessner Auditorium at Wilson Lodge, Oglebay Resort and Conference Center, Wheeling, West Virginia, 26003, on Wednesday, April 22, 2020, at 12:00 Noon E.D.T. The purposes of the meeting are as follows: (1) To elect eight persons to the Board of Directors: Six to serve for a term of three years, one to serve for a term of one year, and one to serve for a term of two years. (2) To approve an advisory (non-binding) vote on executive compensation paid to Wesbanco’s named executive officers. (3) To approve an advisory (non-binding) vote ratifying the appointment of Ernst & Young, LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2020. (4) To consider and act upon such other matters as may properly come before the meeting or any adjournment thereof. The Board of Directors recommends a vote (1) in favor of the director nominees, (2) in favor of the executive compensation paid to Wesbanco’s named executive officers and (3) in favor of the ratification of the appointment of Ernst & Young as our independent registered public accounting firm. The holders of the common stock of Wesbanco as of the close of business on March 3, 2020 are entitled to vote at the meeting. You are requested to sign and date the enclosed form of Proxy and return it in the enclosed postage-paid envelope at your earliest convenience. As indicated in the accompanying Proxy Statement, proxies may be revoked at any time prior to the voting thereof. Alternatively, if you hold shares of Wesbanco common stock directly in your name, you may vote over the Internet or by telephone by following the instructions set forth in the Proxy Card. By Order of the Board of Directors. LINDA M. WOODFIN Secretary Wheeling, West Virginia March 18, 2020 IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE STOCKHOLDER MEETING TO BE HELD ON APRIL 22, 2020. THIS PROXY STATEMENT AND THE 2019 ANNUAL REPORT TO STOCKHOLDERS ARE AVAILABLE AT www.wesbanco.com INDEX PROXY STATEMENT PAGE PROXIES ............................................................................ 1 Delivery of Proxy Materials to Households .............................................. 1 STOCK OUTSTANDING AND VOTING RIGHTS .......................................... 2 BENEFICIAL OWNERS OF MORE THAN 5% OF THE COMMON STOCK OF THE CORPORATION .................................................................... 3 OWNERSHIP OF SECURITIES BY DIRECTORS, NOMINEES AND OFFICERS ................. 4 SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE ..................... 6 Delinquent Section 16(a) Reports ..................................................... 6 TRANSACTIONS WITH DIRECTORS AND OFFICERS ..................................... 6 Transactions with Related Persons ..................................................... 6 Policies and Procedures for Approval of Related Party Transactions .......................... 7 ELECTION OF DIRECTORS ............................................................ 8 NOMINEES .......................................................................... 8 A. Directors Whose Term of Office Will Expire at the Annual Stockholders Meeting in 2023. ..... 8 Additional Information .............................................................. 8 B. Director Whose Term of Office Will Expire at the Annual Stockholders Meeting in 2021. ...... 10 Additional Information .............................................................. 11 C. Director Whose Term of Office Will Expire at the Annual Stockholders Meeting in 2022. ...... 11 Additional Information .............................................................. 11 CONTINUING DIRECTORS ............................................................ 12 A. Directors Whose Term of Office Will Expire at the Annual Stockholders Meeting in 2021. ..... 12 Additional Information .............................................................. 12 B. Directors Whose Term of Office Will Expire at the Annual Stockholders Meeting in 2022. ..... 14 Additional Information .............................................................. 14 EXECUTIVE OFFICERS OF THE CORPORATION ......................................... 15 COMPENSATION DISCUSSION AND ANALYSIS ......................................... 17 Introduction ...................................................................... 17 Compensation Philosophy and Objectives ............................................... 17 Administration of the Executive Compensation Program ................................... 18 Compensation Committee Process. ................................................ 18 Use of Peer Group. ............................................................. 18 Management’s Role in the Compensation-Setting Process. .............................. 20 Annual Evaluation. ............................................................. 20 Components of Executive Compensation ............................................... 20 Annual Compensation .............................................................. 21 Base Salary. .................................................................. 21 Annual Cash Incentive Awards. ................................................... 21 INCENTIVE AWARDS ................................................................ 23 Long-Term Incentive Compensation ................................................... 26 Stock Options. ................................................................ 26 Restricted Stock Awards. ........................................................ 26 Long-Term Cash Bonuses. ....................................................... 27 Total Shareholder Return Plan and Awards. ......................................... 27 Description of TSRP. ........................................................... 27 The TSR Peer Group. ........................................................... 28 2017-2019 Performance Period Results. ............................................ 28 Performance Based Stock Awards. ................................................ 28 Description of PBSP. ........................................................... 28 The PBSP Peer Group. .......................................................... 29 PAGE Retirement Plans ................................................................... 29 Defined Benefit Plan. ........................................................... 29 Wesbanco KSOP Plan. .......................................................... 29 SERP. ....................................................................... 30 Why We Maintain the Defined Benefit Plan, KSOP and SERP. .......................... 30 Perquisites and Other Benefits ........................................................ 31 Deferred Compensation Opportunities .................................................. 31 Bank-Owned Life Insurance Program .................................................. 31 Employment Contracts .............................................................. 32 Change in Control Agreements ....................................................... 32 Tax Deductibility of Compensation .................................................... 34 Our Policies With Respect to Granting Equity Awards ..................................... 34 Timing of Grants. .............................................................. 34 Stock Option Exercise Price. ..................................................... 35 Clawback Policy ................................................................... 35 Stock Ownership Guidelines ......................................................... 35 Anti-Hedging and Anti-Margin Account Policies ......................................... 35 Review of All Components of Executive Compensation .................................... 35 COMPENSATION COMMITTEE REPORT ................................................ 36 SUMMARY COMPENSATION TABLE ................................................... 37 Perquisites and Other Benefits ........................................................ 37 ALL OTHER COMPENSATION ......................................................... 38 GRANTS OF PLAN-BASED AWARDS FOR THE YEAR ENDED DECEMBER 31, 2019 .......... 38 KEY EXECUTIVE INCENTIVE BONUS, OPTION AND RESTRICTED STOCK PLAN ............ 39 OPTION EXERCISES AND STOCK VESTED .............................................. 40 OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END ................................ 41 PENSION BENEFITS .................................................................. 42 DEFERRED COMPENSATION PLAN .................................................... 43 NONQUALIFIED DEFERRED COMPENSATION .......................................... 43 POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL ................. 44 Severance ........................................................................ 44 Long-Term Incentive Plan ........................................................... 45 SERP ........................................................................... 46 Retirement Plans ................................................................... 46 EXECUTIVE BENEFITS AND PAYMENTS UPON TERMINATION ........................... 47 CEO PAY RATIO ....................................................................