Governance and Nominating Committee Charter
The Governance and Nominating Committee (the "Committee") assists the Board of Directors (the "Board") of SPS Commerce, Inc. (the "Company") in:
- identifying qualified individuals to become Board members;
- determining the composition of the Board and its committees;
- assessing and enhancing the effectiveness of the Board and individual directors;
- developing and implementing the Company's Corporate Governance Guidelines; and
- ensuring that succession planning takes place for critical senior management positions.
The Committee may form and delegate authority to subcommittees consisting of one or more members when deemed appropriate by the Committee.
To fulfill its role, the Committee will have the following responsibilities:
- Annually, and as needed, consider and recommend to the Board the size and composition of the Board.
- Evaluate, based on criteria in the Corporate Governance Guidelines and the charters of the respective Board committees, and on the Committee's assessment of the needs of the Board and its committees, possible nominees (including those recommended by stockholders in accordance with the Corporate Governance Guidelines) for election as directors, conduct appropriate inquiries into the background and qualifications of possible nominees, and recommend to the Board suitable nominees for election either annually by shareholders or, in the event of a vacancy, by the Board.
- Consider and establish procedures for identifying and recruiting potential director nominees who meet criteria for Board membership, including utilizing the resources of board leadership and board membership associations and the Committee's network of contacts, and engaging professional search firms as appropriate.
- Annually review the Board committee structure and the composition of the standing committees, and recommend to the Board for its approval directors to serve as members of the standing committees of the Board. Recommend additional committee members to fill vacancies as needed.
- Develop and oversee an annual self-evaluation process of the Board and its performance.
- Periodically evaluate the participation and contribution of each director.
- Periodically review and recommend to the Board any modifications of the Corporate Governance Guidelines, and oversee the implementation of the Corporate Governance Guidelines.
- Periodically assess the adequacy of this charter and recommend any proposed changes to the Board for its approval.
- Oversee the process for providing an orientation to the Company for new directors, and for periodically providing materials or briefing sessions for all directors on subjects that would assist them in discharging their duties.
- Recommend an annual calendar of meetings for the Board.
- Periodically review and report to the Board on the performance of the Committee.
- Recommend to the Board succession plans for the Chief Executive Officer ("CEO") and other critical, senior management positions, and review such plans periodically with the CEO.
- Recommend to the Board the selection, re-election or, if necessary, the replacement of the CEO.
- Provide advice and counsel to the CEO on shareholder relations and other matters as requested.
- Evaluate, oversee preparation and recommend to the Board proxy statement responses to shareholder proposals.
COMPOSITION OF THE BOARD AND COMMITTEES
EVALUATION OF THE BOARD AND DIRECTORS
Mr. Ramsey was the Executive Vice President, Worldwide Sales and Distribution at NetSuite, Inc. from 2011 to 2013 and Senior Vice President, Worldwide Sales and Distribution from 2009 to 2011. Mr. Ramsey took a sabbatical from his position at NetSuite in April 2013. Prior to joining NetSuite, he was a director in charge of telesales at Oracle Corporation.
Philip E. Soran has served as a director since July 2010. Mr. Soran served as President, Chief Executive Officer, and a director of Compellent Technologies, Inc., a publicly traded company which he co-founded in March 2002, until its acquisition by Dell Inc. in February 2011, after which he served as the President of Dell Compellent from February 2011 to March 2012. Mr. Soran also serves on the board of directors for Hutchinson Technology, Inc., a technology manufacturer and a publicly traded company. From July 1995 to August 2001, Mr. Soran served as President, Chief Executive Officer, and a member of the board of directors of Xiotech, which Mr. Soran co-founded in July 1995. Xiotech was acquired by Seagate in January 2000. From October 1993 to April 1995, Mr. Soran served as Executive Vice President of Prodea Software Corporation, a data warehousing software company. Mr. Soran also held a variety of management, sales, marketing, and technical positions with IBM. Mr. Soran also served on the board of directors of Stellent, Inc. from April 2003 until its acquisition by Oracle Corporation in December 2006.
Sven A. Wehrwein has served on our board of directors since July 2008. Mr. Wehrwein has been an independent financial consultant to emerging companies since 1999. He has more than 35 years of experience as an investment banker, chief financial officer, and certified public accountant (inactive). He currently serves on the board of directors of Proto Labs, Inc., a manufacturer of custom parts and publicly traded company. Mr. Wehrwein also served on the board of directors of Cogentix Medical, Compellent Technologies, Inc., Image Sensing Systems, Inc., Synovis Life Technologies, Inc. and Vital Images, Inc..