Exhibit
10.51
Description
of Compensation Arrangements for Non-Management Directors
Following
is a description of the current compensation arrangements for the non-management
directors of Constellation Brands, Inc.:
The
Company’s current compensation program for non-management directors for their
services as directors includes cash, restricted stock, and stock option
components.
The
cash component consists of (i) an annual retainer of $35,000, (ii) a Board
meeting fee of $1,500 for each Board meeting attended (which includes regular,
special and annual Board meetings and attendance in person or by conference
telephone); (iii) a committee meeting fee of $1,000 per meeting attended
(including by conference telephone); and (iv) an annual fee of $10,000 to the
Chair of the Audit Committee and a fee of $5,000 to the position of Chairs of
each of the Human Resources Committee and the Corporate Governance Committee.
Long-term
incentive awards in the form of options and restricted stock are another element
of non-management director compensation. Long-term incentive awards in the form
of, among others, stock options, stock appreciation rights and restricted stock
are available for grant under the Company’s Long-Term Stock Incentive Plan.
Each
non-management director receives annually, if and as approved by the Board of
Directors, a stock option grant and a restricted stock award. The number of
shares that may be subject to an annual option grant will not exceed the number
obtained by dividing $70,000 by the closing price of a share of the Company’s
Class A Common Stock on the date of the grant. The number of shares of
restricted stock that may be awarded is calculated by dividing the sum of
$20,125 by the closing price of a share of the Company’s Class A Common Stock on
the date of grant. While the Board has the flexibility to determine at the time
of each grant or award the vesting provisions for that grant or award,
historically stock option grants vest six (6) months following the date of grant
and annual awards of restricted stock vest one (1) year from the date of grant.
The plan, the form of Terms and Conditions Memorandum provided to non-management
directors who receive options and the form of restricted stock agreement are
filed as Exhibits 10.4 through 10.10, 10.12 and 10.13 to the Form 10-K.
Non-management
directors are reimbursed for reasonable expenses incurred in connection with
their attendance at Board and committee meetings. They also receive
complimentary wine products and are eligible to participate in a matching
contribution program of the Company whereby
they can direct a portion of the Company’s charitable contributions not in
excess of $5,000.
Members
of the Board of Directors who are members of management serve without receiving
any additional fee or other compensation for their service on the
Board.