2020 Proxy Statement
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DESTINATION XL GROUP, INC. Notice of Annual Meeting of Stockholders to be held on August 12, 2020 Notice is hereby given that the 2020 Annual Meeting of Stockholders of Destination XL Group, Inc. (the “Company”) will be held at the corporate offices of the Company, 555 Turnpike Street, Canton, Massachusetts 02021 at 11:30 A.M., local time, on Wednesday, August 12, 2020 for the following purposes: 1. To elect six directors to serve until the next Annual Meeting of Stockholders and until their respective successors have been duly elected and qualified. 2. To approve, on an advisory basis, named executive officer compensation. 3. To approve an amendment to the Company’s Restated Certificate of Incorporation, as amended to effect a reverse stock split of the Company’s issued and outstanding common stock at a ratio of not less than 1-for-2 and not more than 1-for-15, such ratio, and the implementation and timing of such reverse stock split, to be determined in the sole discretion of the Company’s Board of Directors. 4. To approve amendments to our 2016 Incentive Compensation Plan to increase the total number of shares of common stock authorized for issuance under the plan by 1,740,000 shares. 5. To ratify the appointment of KPMG LLP as our independent registered public accounting firm for the fiscal year ending January 30, 2021. 6. To transact such other business as may properly come before the meeting or any adjournment thereof. These proposals are more fully described in the Proxy Statement following this Notice. The Board of Directors recommends that you vote FOR the election of all six nominees to serve as directors of the Company and FOR the approval of all other Proposals being presented at the Annual Meeting. Along with the attached Proxy Statement, we are sending you a copy of our Annual Report on Form 10-K for the fiscal year ended February 1, 2020. The Board of Directors has fixed the close of business on June 19, 2020 as the record date for the determination of the stockholders entitled to notice of, and to vote at, the Annual Meeting. Accordingly, only stockholders of record at the close of business on that date will be entitled to vote at the Annual Meeting. A list of the stockholders of record as of the close of business on June 19, 2020 will be available for inspection by any of our stockholders for any purpose germane to the Annual Meeting during normal business hours at our principal executive offices, 555 Turnpike Street, Canton, Massachusetts 02021, beginning on July 31, 2020 and at the Annual Meeting. Stockholders are cordially invited to attend the Annual Meeting in person. Regardless of whether you plan to attend the Annual Meeting, please mark, date, sign and return the enclosed proxy to ensure that your shares are represented at the Annual Meeting. Special Note Regarding COVID-19: Given the public health and safety concerns related to COVID-19, we ask that each stockholder evaluate the relative benefits to them personally of in-person attendance at the Annual Meeting and take advantage of the ability to vote by proxy, as instructed on the proxy card or voting instructions that have been provided to you. If you elect to attend the Annual Meeting in person, we ask that you follow recommended guidance, mandates, and applicable executive orders from federal and state authorities, particularly as they relate to social distancing and attendance at public gatherings. If you are not feeling well or think you may have been exposed to COVID-19, we ask that you vote by proxy for the meeting. Please be advised that the Company will monitor any further developments with COVID-19 and the impact on the Annual Meeting. If the Company determines that it is not advisable to hold the Annual Meeting in person, the Company will, as promptly as possible, announce details on changes to the Annual Meeting, including by issuing a press release and posting such information on our website. By order of the Board of Directors, /s/ ROBERT S. MOLLOY ROBERT S. MOLLOY Secretary Canton, Massachusetts July 2, 2020 Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to be Held on August 12, 2020: The Proxy Statement and 2020 Annual Report to Stockholders are available at: https://investor.dxl.com/financial-information/annual-reports TABLE OF CONTENTS Page Information About the Annual Meeting and Voting......................................................................................................................... 1 Proposal 1: Election of Directors ...................................................................................................................................................... 3 Corporate Governance....................................................................................................................................................................... 6 Director Compensation ..................................................................................................................................................................... 11 Compensation Discussion and Analysis ........................................................................................................................................... 14 Compensation Committee Report ..................................................................................................................................................... 24 Summary Compensation Table ......................................................................................................................................................... 25 2019 Grants of Plan-Based Awards .................................................................................................................................................. 31 2019 Outstanding Equity Awards at Fiscal Year End....................................................................................................................... 33 2019 Option Exercises and Stock Vested ......................................................................................................................................... 34 Proposal 2: Advisory Vote to Approve Named Executive Officer Compensation .......................................................................... 36 Proposal 3: Approval of Amendment to Certificate of Incorporation to Effect a Reverse Stock Split ........................................... 37 Proposal 4: Approval of Amendments to the 2016 Incentive Compensation Plan........................................................................... 42 Proposal 5: Ratification of Appointment of Independent Registered Public Accounting Firm........................................................ 55 Report of the Audit Committee......................................................................................................................................................... 56 Security Ownership of Certain Beneficial Owners ........................................................................................................................... 57 Security Ownership of Management................................................................................................................................................. 59 Where You Can Find More Information........................................................................................................................................... 61 Solicitation ........................................................................................................................................................................................ 61 Delivery of Documents to Stockholders Sharing an Address ........................................................................................................... 61 Stockholder Proposals....................................................................................................................................................................... 61 Stockholder Communications with the Board of Directors .............................................................................................................. 62 Other Matters..................................................................................................................................................................................... 62 Appendix A – Certificate of Amendment to Restated Certificate of Incorporation ........................................................................... A-1 Appendix B – 2016 Incentive Compensation Plan, as proposed to be amended ............................................................................... B-1 Appendix C – Non-GAAP Financial Measure .................................................................................................................................. C-1 DESTINATION XL GROUP, INC. 555 Turnpike Street Canton, Massachusetts 02021 (781) 828-9300 Proxy Statement Annual Meeting of Stockholders August 12, 2020 INFORMATION ABOUT THE ANNUAL MEETING AND VOTING Purpose and Distribution of Proxy Materials This Proxy Statement and the enclosed form of proxy are being mailed to our stockholders on or about July 2, 2020, in connection with the solicitation by the Board of Directors (the “Board”) of Destination XL Group, Inc. (the “Company”) of proxies to be used at the Annual Meeting of Stockholders, to be held at the Company’s corporate headquarters located at 555 Turnpike Street, Canton, Massachusetts 02021 at 11:30 A.M., local