EXELA TECHNOLOGIES, INC.

(XELA)
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Exela Technologies : 2022 Proxy Statement & 2021 Annual Report

06/03/2022 | 04:22pm EDT

2021

ANNUAL

REPORT

2022

PROXY

STATEMENT

Letter from our Executive Chairman and fellow Exelarator, Par Chadha

June 1, 2022

Fellow Shareholders,

I am humbled to serve as your Executive Chairman and to serve our almost 17,000 strong employees in 23 countries in partnering with over 4,000 customers on their digital transformation journey. In 2021 we accomplished several critical milestones. Perhaps most important, we dramatically reduced the size of our long-term debt, $454 million to be exact.

These steps put us on course in 2022 to invest for growth. We completed two strategic investments in early 2022, and we continue to invest in our "work from anywhere, anytime" business model. We have also moved to provide greater autonomy and accountability to our existing leaders and deepened our capabilities by onboarding new talent.

We achieved major progress in enabling our business for the new, remote working environment. At the end of 2021, 50% of our colleagues worked remotely and our cloud hosted uberization platform provided us access to more than 10,000 team members by March and we are on target for 25,000 such team members by the end of 2022. We reduced our real estate footprint by approximately 20% in 2021 and continue to reduce it further in 2022 with a another 16% target reduction. The focus on leaders has helped us achieve the best annual contract and total contract value results over the past five quarters in Q1 2022. All these initiatives and milestones are meant to position us for the future as a stronger company which will continue to support a supply chain across six continents, including some of the most valuable companies in the world.

No letter to shareholders would be complete without an expression of gratitude to you, our shareholders, and also to our fellow employees, worldwide. Our team has shown its tenacity and resilience and continues to deliver to our customers despite the challenging global environment. In the past two years we weathered a pandemic, which has tested us in a multitude of ways and triggered our move to a true remote working environment. The headwinds have not abated however; rising costs across the globe are making us work harder to leverage our technologies to remain agile and prevent erosion of hard earned margin.

As we roll out our strategic plans for 2022 and beyond, we are mindful of the remaining debt maturities in 2023 and continuing headwinds and plan to build upon our "cash is king" mantra and ultimately give back to shareholders. I look forward to reporting to you on our progress.

Par Chadha

Executive Chairman

PROXY STATEMENT & MEETING NOTICE

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

TO BE HELD JUNE 27, 2022

The Annual Meeting of Stockholders (the "Annual Meeting") of Exela Technologies, Inc. ("Exela" or the "Company") will be conducted virtually at www.virtualshareholdermeeting.com/XELA2022am, at 9:00 a.m., Central Time, on June 27, 2022 for the purpose of:

  1. Electing to the Board of Directors the three nominees named in the accompanying Proxy Statement who have been nominated by the Board of Directors to serve as Class B directors and whose current terms will expire at the Annual Meeting;
  2. Acting upon a proposal to ratify the appointment of KPMG LLP as the Company's independent registered public accounting firm for the year ending December 31, 2022;
  3. Acting upon a proposal to approve, on a non-binding, advisory basis, compensation of the Company's named executive officers as described in the accompanying Proxy Statement;
  4. Acting upon a proposal to approve the Amended and Restated Exela Technologies, Inc. 2018 Stock Incentive Plan;
  5. Acting upon a proposal to approve the adoption of an amendment to the Company's certificate of incorporation to effect a reverse split of the Company's outstanding common stock at a ratio in the range of 1-for-2 to 1-for-20, to be determined at the discretion of the Company's Board of Directors and publicly disclosed prior to the effectiveness of such reverse stock split, whereby each outstanding 2 to 20 shares would be reclassified and combined into 1 share of the Company's common stock, to enable the Company to comply with the Nasdaq Stock Market's continued listing requirements (the "Reverse Stock Split");
  6. Acting upon a proposal to approve an amendment to the Company's certificate of incorporation to increase the number of authorized shares of preferred stock from 20,000,000 shares to 40,000,000 shares (the "Preferred Stock Increase"); and
  7. Acting upon a proposal to approve one or more adjournments of the Annual Meeting, if necessary or appropriate, if a quorum is present, to permit further solicitation of proxies if there are not sufficient votes at the time of the meeting to approve Proposals No. 5 and 6.

The Board of Directors has fixed the close of business on May 23, 2022 as the date for determining stockholders of record entitled to receive notice of, and to vote at, the Annual Meeting. The Board of Directors unanimously recommends that stockholders vote their shares in favor of the election of the Class B nominees, and in favor of Proposals 2, 3, 4, 5, 6 and 7.

This Notice and accompanying Proxy Statement and proxy or voting instruction card will be first mailed to you and to other stockholders of record commencing on or about June 1, 2022. All stockholders are cordially invited to attend the Annual Meeting. The Annual Meeting will be held in a virtual meeting format so as many shareholders as possible can participate. Whether or not you plan to attend the Annual Meeting, I hope that you will vote as soon as possible. Please review the instructions on the proxy or voting instruction card regarding your voting options.

If you have any questions regarding the accompanying Proxy Statement or how to vote your shares, you may contact D.F. King & Co., Inc., our proxy solicitor, at (toll-free) (888) 644-6071 or (collect) (212) 269-5550 or email: exela@dfking.com

By Order of the Board of Directors

Par Chadha

Executive Chairman

June 1, 2022

TABLE OF CONTENTS

Page

PROXY STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

Questions and Answers About the Annual Meeting and Voting . . . . . . . . . . . . . . . . . . . . . . . . .

1

Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to

Be Held on June 27, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

PROPOSAL 1 - ELECTION OF DIRECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

The Board of Directors unanimously recommends a vote FOR the director nominees . . . . . . . . .

8

Nominees for Election to the Board of Directors in 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

Nominees for Class B Directorship - Term Expiring in 2022 . . . . . . . . . . . . . . . . . . . . . . . . .

8

Continuing Members of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

Additional Information Concerning the Board of Directors of the Company . . . . . . . . . . . . . . .

12

Director Independence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

Director Nomination Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

Directors' and Officers' Liability Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

Board Leadership Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

Board Role in Risk Oversight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

Board Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

DIRECTOR REMUNERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

COMMITTEES OF THE BOARD OF DIRECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17

PROPOSAL 2 - RATIFICATION OF INDEPENDENT REGISTERED PUBLIC

ACCOUNTING FIRM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20

REPORT OF THE AUDIT COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21

PROPOSAL 3 - ADVISORY VOTE ON COMPENSATION PAID TO OUR NAMED

EXECUTIVE OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

PROPOSAL 4 - AMENDMENT AND RESTATEMENT OF THE EXELA TECHNOLOGIES,

INC. 2018 STOCK INCENTIVE PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

Overview of the Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

Rationale for Approving the Amended and Restated 2018 Plan . . . . . . . . . . . . . . . . . . . . . . .

24

Alignment of the Amended and Restated 2018 Plan with the Interests of the Company and

Stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25

Key Features of the Amended and Restated 2018 Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25

Executive Chairman Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26

Summary of the Amended and Restated 2018 Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

Certain U.S Federal Income Tax Consequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32

New Plan Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33

Securities Authorized for Issuance Under Equity Compensation Plans as of March 31, 2022 . . .

34

Vote Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34

Recommendation of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34

PROPOSAL 5 - APPROVAL OF THE ADOPTION OF THE AMENDMENT TO THE

CERTIFICATE OF INCORPORATION TO EFFECT THE REVERSE STOCK SPLIT . . . . . .

35

i

Disclaimer

Exela Technologies Inc. published this content on 03 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 June 2022 20:21:07 UTC.


© Publicnow 2022
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Shrikant Sortur Chief Financial Officer
Parvinder S. Chadha Executive Chairman
Sriram Ramanathan Chief Technology officer
John H. Rexford Independent Director
Martin P. Akins Independent Director
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