1)
|
Title of each class of securities to which transaction applies: |
2)
|
Aggregate number of securities to which transaction applies: |
3)
|
Per
unit price or other underlying value of transaction computed pursuant
to
Exchange Act Rule 0-11 (set
forth the amount on which the filing fee is calculated and state
how it
was determined):
|
4)
|
Proposed
maximum aggregate value of transaction:
|
5)
|
Total fee paid: |
1)
|
Amount previously paid: |
2)
|
Form, Schedule or Registration Statement No.: |
3)
|
Filing
Party:
|
4)
|
Date
Filed:
|
1. | To elect four directors; |
2. |
To
ratify the selection of Ernst & Young LLP as our independent
registered public accounting firm;
and
|
3. |
To
act upon any such other matters as may properly come before the meeting
or
any adjournments or postponements
thereof.
|
By
order of the Board of Directors,
|
||
/s/
Ronald L. Matlock
|
||
|
||
Ronald
L. Matlock, Secretary
|
||
Oklahoma City, Oklahoma | ||
December 20, 2006 |
SOLICITATION
OF
PROXIES............................................................................................................................................................................................................................................................................
|
1
|
Solicitation.........................................................................................................................................................................................................................................................................................
|
1
|
Reimbursement
of
Nominees..........................................................................................................................................................................................................................................................
|
1
|
Revocation
of
Proxy.........................................................................................................................................................................................................................................................................
|
1
|
Mailing
of Proxy Statement and Proxy
Card.................................................................................................................................................................................................................................
|
1
|
Stockholder
Proposals.....................................................................................................................................................................................................................................................................
|
1
|
VOTING
RIGHTS AND
PROCEDURE..............................................................................................................................................................................................................................................................
|
1
|
PROPOSAL
NO. 1 - ELECTION OF
DIRECTORS...........................................................................................................................................................................................................................................
|
2
|
General...............................................................................................................................................................................................................................................................................................
|
2
|
Nominees...........................................................................................................................................................................................................................................................................................
|
2
|
Other
Directors.................................................................................................................................................................................................................................................................................
|
3
|
Directors
Emeritus............................................................................................................................................................................................................................................................................
|
4
|
Committees,
Compensation, and
Meetings..................................................................................................................................................................................................................................
|
4
|
Corporate
Governance.....................................................................................................................................................................................................................................................................
|
5
|
Communications
with
Directors.....................................................................................................................................................................................................................................................
|
6
|
PROPOSAL
NO. 2 - RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM...........................................................................................................................................
|
7
|
General...............................................................................................................................................................................................................................................................................................
|
7
|
Principal
Accountant Fees and
Services......................................................................................................................................................................................................................................
|
7
|
Policy
on Audit Committee Pre-Approval of Audit and Permissible Non-Audit
Services of Independent Registered Public Accounting
Firm........................................................
|
7
|
EXECUTIVE
COMPENSATION........................................................................................................................................................................................................................................................................
|
8
|
CERTAIN
RELATIONSHIPS AND RELATED
TRANSACTIONS..............................................................................................................................................................................................................
|
11
|
REPORT
OF COMPENSATION
COMMITTEE...............................................................................................................................................................................................................................................
|
11
|
Independent
Compensation Consultant
Report..........................................................................................................................................................................................................................
|
11
|
Compensation
Policy and Overall
Objectives..............................................................................................................................................................................................................................
|
12
|
Discussion
of Compensation
Components..................................................................................................................................................................................................................................
|
12
|
Compensation
of Chief Executive
Officer.....................................................................................................................................................................................................................................
|
12
|
COMPENSATION
COMMITTEE INTERLOCKS AND INSIDER
PARTICIPATION...............................................................................................................................................................................
|
13
|
REPORT
OF AUDIT
COMMITTEE..................................................................................................................................................................................................................................................................
|
13
|
STOCK
PERFORMANCE
GRAPH....................................................................................................................................................................................................................................................................
|
14
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.....................................................................................................................................................................
|
15
|
SECTION
16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE................................................................................................................................................................................................
|
17
|
OTHER
MATTERS..............................................................................................................................................................................................................................................................................................
|
17
|
2006
ANNUAL REPORT AND FORM
10-K....................................................................................................................................................................................................................................................
|
17
|
Name
and
Principal
Occupation
|
First
Became
a
Director
|
Term
Expires
|
Age
|
J.
Clifford Hudson1
|
August
1993
|
2010
|
52
|
Federico
F. Peña 2
|
January
2001
|
2010
|
59
|
Robert
M. Rosenberg3
|
April
1993
|
2010
|
68
|
J.
Larry Nichols 4
|
Nominee
|
2009
|
64
|
Name
and
Principal
Occupation
|
First
Became
a
Director
|
Term
Expires
|
Age
|
Michael
J. Maples 1
|
June
2005
|
2009
|
64
|
Frank
E. Richardson 2
|
March
1991
|
2009
|
67
|
Leonard
Lieberman3
|
December
1988
|
2008
|
77
|
H.E.
“Gene” Rainbolt4
|
January
1996
|
2008
|
77
|
· |
The
Nominating and Corporate Governance Committee is required to review
with
the Board annually the composition of the Board as a whole, including
the
directors’ independence, skills, experience, age, diversity, and
availability of service to the
Company.
|
· |
The
Board is required to conduct periodic self-evaluation through the
Nominating and Corporate Governance
Committee.
|
· |
The
Nominating and Corporate Governance Committee is required to review
and
report to the Board at least annually on succession planning for
the Chief
Executive Officer and the Chief Executive Officer is required at
all times
to make available to the Board his or her recommendations of potential
successors.
|
· |
The
independent directors are required to meet in conjunction with each
regularly scheduled quarterly board meeting and at other appropriate
times.
|
· |
The
Board and all committees are authorized to hire their own
advisors.
|
· |
Directors
who change job responsibilities are required to notify the Board
and give
the Board the opportunity to review whether they should continue
to serve
as Board members.
|
· |
Each
candidate shall be an individual who has demonstrated integrity and
ethics
in his or her professional life and has established a record of
professional accomplishment in his or her chosen
field.
|
· |
No
candidate shall have any material personal, financial, or professional
interest in any present or potential competitor of the
Company.
|
· |
Each
candidate shall be prepared to participate fully in activities of
the
Board of Directors, including active membership in at least one committee
of the Board of Directors and attendance at, and active participation
in,
meetings of the Board of Directors and the committee(s) of the Board
of
which he or she is a member.
|
2006
|
2005
|
||||||
Audit
Fees1
|
$
|
581,000
|
$
|
574,565
|
|||
Audit-Related
Fees2
|
37,000
|
21,750
|
|||||
Tax
Fees3
|
67,825
|
31,750
|
|||||
Total
|
$
|
685,825
|
$
|
628,065
|
Annual
Compensation
|
Long-term
Compensation
|
||||||
Name
and
Principal
Position
|
Year
|
Salary($)
|
Bonus($)1
|
Other
Annual
Compensation($)2
|
Securities
Underlying
Stock
Options(#)
|
All
Other
Compensation($)3
|
|
J.
Clifford Hudson
|
2006
|
571,386
|
429,986
|
--
|
58,487
|
10,631
|
|
Chairman
of the Board,
|
2005
|
546,044
|
424,676
|
--
|
60,078
|
10,471
|
|
Chief
Executive Officer and
|
2004
|
525,042
|
419,565
|
--
|
64,046
|
10,439
|
|
President
|
|||||||
W.
Scott McLain
|
2006
|
301,329
|
151,061
|
--
|
19,769
|
11,142
|
|
Executive
Vice President,
|
2005
|
284,319
|
150,351
|
--
|
54,023
|
10,982
|
|
President
of Sonic Industries Inc.
|
2004
|
270,308
|
110,275
|
--
|
65,369
|
10,103
|
|
Michael
A. Perry
|
2006
|
270,001
|
134,974
|
--
|
17,709
|
11,081
|
|
President
of
|
2005
|
250,000
|
133,724
|
--
|
48,435
|
11,371
|
|
Sonic
Restaurants, Inc.
|
2004
|
230,000
|
81,305
|
--
|
21,644
|
10,491
|
|
Ronald
L. Matlock
|
2006
|
256,666
|
106,917
|
--
|
15,627
|
10,931
|
|
Senior
Vice President,
|
2005
|
245,637
|
106,371
|
--
|
16,199
|
10,864
|
|
General
Counsel and
|
2004
|
234,610
|
95,712
|
--
|
23,120
|
10,071
|
|
Secretary
|
|||||||
V.
Todd Townsend
|
2006
|
250,000
|
99,455
|
--
|
15,026
|
2,861
|
|
Vice
President, Chief
|
2005
|
11,378
|
--
|
--
|
45,001
|
--
|
|
Marketing
Officer
|
2004
|
--
|
--
|
--
|
--
|
--
|
Name
|
Number
of
Securities
Underlying
Options
Granted
(#)1
|
Percent
of Total
Options
Granted
to
Employees
in
Fiscal
Year (%)
|
Exercise
Price
($/Sh)
|
Expiration
Date
|
Potential
Realizable Value
at
Assumed Annual Rates of
Price
Appreciation for
Option
Term2
|
|||||||
|
|
|
|
|
|
|
|
5%
($)
|
10%
($)
|
|||
|
|
|
|
|
|
|
|
|
|
|||
J.
Clifford Hudson
|
15,001
|
|
7.08
|
19.30
|
|
1-31-16
|
|
182,077
|
461,420
|
|||
|
43,486
|
|
|
23.08
|
|
4-6-13
|
|
408,589
|
952,186
|
|||
|
|
|
|
|
|
|
|
|
|
|||
W.
Scott McLain
|
19,769
|
|
2.39
|
23.08
|
|
4-6-13
|
|
185,747
|
432,870
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Michael
A. Perry
|
17,709
|
|
2.14
|
23.08
|
|
4-6-13
|
|
166,392
|
387,763
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Ronald
L. Matlock
|
15,627
|
|
1.89
|
23.08
|
|
4-6-13
|
|
146,829
|
342,175
|
|||
|
|
|
|
|
|
|
|
|
|
|||
V.
Todd Townsend
|
15,026
|
|
1.82
|
23.08
|
|
4-6-13
|
|
141,182
|
329,015
|
Name
|
|
Shares
Acquired
on
Exercise
(#)
|
Value
Realized
($)
|
Number
of
Unexercised
Options
as
of Fiscal Year
End Exercisable/
Unexercisable
(#)
|
Value
of Unexercised
In-the-Money
Options
as
of Fiscal Year End
Exercisable/
Unexercisable
($)1
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||
J.
Clifford Hudson
|
|
|
255,564
|
2
|
4,191,250
|
|
|
|
781,130
|
|
$
|
11,677,162
|
|
|
|
|
|
|
|
|
|
|
119,885
|
|
|
220,359
|
|
W.
Scott McLain
|
|
|
249,989
|
2
|
512,271
|
|
|
|
371,341
|
|
|
5,226,390
|
|
|
|
|
|
|
|
|
|
|
77,573
|
|
|
213,027
|
|
Michael
A. Perry
|
|
|
0
|
|
0
|
|
|
121,995
|
|
|
1,103,550
|
|
|
|
|
|
|
|
|
|
|
|
57,212
|
|
|
103,749
|
|
Ronald
L. Matlock
|
|
|
75,728
|
2
|
1,544,706
|
|
|
|
328,118
|
|
5,058,637
|
|
|
|
|
|
|
|
|
|
|
|
34,132
|
|
|
62,444
|
|
V.
Todd Townsend
|
|
|
0
|
|
0
|
|
|
|
15,001
|
|
|
12,901
|
|
|
|
|
|
|
|
|
|
|
45,026
|
|
|
25,800
|
|
Respectfully
submitted,
|
||
The
Compensation Committee
|
||
/s/
Leonard Lieberman, Chairman
|
||
/s/
Michael J. Maples
|
||
/s/
Federico
F. Peña
|
Respectfully
submitted,
|
|
The
Audit Committee
|
|
/s/
H. E. Rainbolt, Chairman
|
|
/s/
Frank E. Richardson
|
|
/s/
Robert M. Rosenberg
|
Beneficial
Owner
|
Number
of
Shares
|
Percent1
|
FMR
Corp.2
82
Devonshire Street
Boston,
Massachusetts 02109
|
10,898,329
|
15.9%
|
Barclays
Global Investors, NA3
45
Fremont Street
San
Francisco, CA 94105
|
9,111,753
|
13.3%
|
Earnest
Partners, LLC
4
1180
Peachtree Street NE, Suite 2300
Atlanta,
Georgia 30309
|
7,426,136
|
10.8%
|
T.
Rowe Price Associates, Inc.
5
100
East Pratt Street
Baltimore,
Maryland 21202
|
4,155,438
|
6.1%
|
Beneficial
Owner
|
Number
of
Shares
|
Number
of
Currently
Exercisable
Options
|
Percent1
|
|||||||
J.
Clifford Hudson2
|
1,185,186
|
781,130
|
2.82%
|
|
||||||
W.
Scott McLain3
|
17,468
|
382,639
|
4
|
|||||||
Michael
A. Perry
5
|
28,145
|
132,125
|
4
|
|||||||
Ronald
L. Matlock6
|
50,581
|
328,118
|
4
|
|||||||
T.
Todd Townsend7
|
810
|
15,001
|
4
|
|||||||
Leonard
Lieberman
|
52,203
|
111,375
|
4
|
|||||||
Michael
J. Maples
|
6,000
|
25,313
|
4
|
|||||||
Federico
F. Peña
|
1,161
|
86,063
|
4
|
|||||||
H.
E. Rainbolt
|
132,875
|
60,750
|
4
|
|||||||
Frank
E. Richardson8
|
1,997,289
|
111,375
|
2.98%
|
|
||||||
Robert
M. Rosenberg
|
119,280
|
68,625
|
4
|
|||||||
Directors
and executive officers
as
a group
(14)
9
|
3,628,091
|
2,533,266
|
8.23%
|
|