calculate with certainty any interim performance unit values mid-cycle, and no named executive officer is entitled to any payout until the Performance Units vest and the Committee approves the
valuation at the conclusion of the cycle. Mr. OShaughnessy holds 7,500 units in the 20152018 cycle, Mr. Jones holds 4,500 units in the 20152018 cycle, Mr. Rosen holds 7,000 units in the 20152018 cycle,
Mr. Cooney holds 5,000 units in the 20152018 cycle and Ms. Maddrey holds 5,000 units in the 20152018 cycle.
Pursuant to the terms of the 2012 ICP, shares of Class B Stock may be issued upon the exercise of stock options granted to key
employees of the Company. The Committee, however, does not grant stock options on a consistent basis and grants stock options only when a key employee has made a significant contribution to the Company and demonstrates the ability to make additional
contributions. The options generally vest 25% per year, over four years, and expire ten years from the grant date. In November 2015, in connection with his assumption of the role of Chief Executive Officer in addition to his role as President
of the Company, Mr. OShaughnessy received an additional grant of options to acquire 22,742 shares of Class B Stock so that as of December 31, 2016, he held 100,000 Company options. This award will vest over a six-year period and was
granted at an option price that was calculated by increasing the closing price on the grant date by a 4.5% compound annual growth rate over the ten-year term of the award.
In addition, in connection with the Cable ONE spin-off, the Company adjusted both the number of shares underlying, and the exercise price of,
outstanding stock options held by employees who remained employed by the Company following the Cable ONE spin-off, including stock options held by each of Messrs. OShaughnessy, Jones, Rosen and Rosberg. Such adjustments resulted in incremental
stock compensation expense for 2015 with respect to certain stock options, including those held by Messrs. Jones, Rosen and Rosberg. For additional details regarding the amounts of such incremental stock compensation expense and such adjustments,
see the Summary Compensation Table.
Qualified Defined Contribution and Defined Benefit Plan
Most employees of the Company, including certain named executive officers, are eligible to participate in the Companys qualified defined
contribution 401(k) savings plan that provides matching Company contributions and a defined benefit retirement plan. Benefits under these plans are determined on the basis of base salary only, exclusive of all bonuses, deferred compensation and
other forms of remuneration.
Eligible Corporate employees hired or rehired by the Company on or after September 1, 2009, participate
in the Cash Balance Retirement Program (CBRP). Eligible Corporate employees who were actively employed on or after August 1, 2012, also participate in the Secure Retirement Account (SRA). Both the CBRP and the SRA are
non-contributory defined benefit programs expressed in the form of hypothetical account balances and that grow through quarterly pay-based credits and quarterly interest credits. Corporate employees hired prior to September 1, 2009, including
certain named executive officers who are vested and who begin to take their pension benefit at age 65 or whose age and years of service when added together equal 90 (the Rule of 90), receive an annual pension equal to 1.75% of their
highest average 60-month base salary annualized up to the limits permitted by the Code, minus Social Security-covered compensation multiplied by the appropriate Social Security offset percentage and early retirement factor, multiplied by the number
of years of credited service under the Graham Holdings Retirement Benefits Schedule (Graham Schedule). An annual cash pension supplement is also provided to assist in payment of retiree medical coverage equal to $200 multiplied by the
number of years of credited service under the Graham Schedule. An additional cash pension supplement of $3,000 per year is provided to participants who retire and commence benefit payment at or after age 55, but prior to age 65, and who had ten
years of vesting service at retirement. The pre-age 65 supplement is discontinued when the retiree qualifies for Medicare (the month prior to the 65th birthday).
Non-Qualified Supplemental Executive Retirement Plans
The Company maintains an unfunded SERP that was designed to retain and recruit key executives. Participants in the SERP, including certain
named executive officers, were selected by management as employees whom management most wanted to retain because of their superior performance and were approved for participation by the Committee. The Company closed the plan to new participants as
of December 2015.
To offset limitations placed on the income that can be considered in the formulas of retirement plans and benefits that
can be payable from the plans, the SERP provides a supplemental retirement benefit. This benefit is calculated under the rules