þ | Filed by the Registrant | ¨ | Filed by a Party other than the Registrant |
CHECK THE APPROPRIATE BOX: | ||||||||
¨ | Preliminary Proxy Statement | |||||||
¨ | Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | |||||||
þ | Definitive Proxy Statement | |||||||
¨ | Definitive Additional Materials | |||||||
¨ | Soliciting Material Pursuant to Section 240.14a-12 |
PAYMENT OF FILING FEE (CHECK THE APPROPRIATE BOX): | |||||||||||
þ | No fee required. | ||||||||||
¨ | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. | ||||||||||
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):
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4) Proposed maximum aggregate value of transaction: | |||||||||||
5) Total fee paid: | |||||||||||
¨ | Fee paid previously with preliminary materials. | ||||||||||
¨ | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing. | ||||||||||
1) Amount previously paid: | |||||||||||
2) Form, Schedule or Registration Statement No.: | |||||||||||
3) Filing Party: | |||||||||||
4) Date Filed: |
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|
|||||
We measure our success, not only by consistently delivering outstanding
financial performance, but also by the experience we create for our customers and our colleagues and by the impact we have on society.
|
|||||
|
|||||
|
Date & Time
|
|
Location*
|
|
Record Date
|
||||||||||||||||||
Wednesday, May 19, 2021 1:00 p.m. (Eastern Time) | http://www.virtualshareholdermeeting.com/TMO2021 | March 26, 2021 |
Proposals
|
Board Recommendation
|
For Further Details
|
||||||||||||
Proposal 1: Elect as directors the 12 nominees named in our proxy statement
|
FOR each nominee
|
Page 12
|
||||||||||||
Proposal 2: Vote on an advisory resolution to approve executive compensation
|
FOR
|
Page 39
|
||||||||||||
Proposal 3: Ratify the selection of PricewaterhouseCoopers LLP as the Company’s independent auditors for 2021
|
FOR
|
Page 72
|
||||||||||||
Proposal 4: Vote on a shareholder proposal regarding the right to call special meetings
|
AGAINST |
Page 75
|
||||||||||||
Shareholders will also consider any other business properly brought before the meeting.
|
||||||||||||||
2020 performance
|
|||||||||||
Submitting 2022 proposals
|
|||||||||||
|
Date & Time
|
|
Location*
|
|
Record Date
|
||||||||||||||||||
Wednesday, May 19, 2021 1:00 p.m. (Eastern Time) | http://www.virtualshareholdermeeting.com/TMO2021 | March 26, 2021 |
2021 Proxy Statement
|
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1
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|
|||||
Honor commitments, communicate openly and demonstrate the highest ethical standards
|
|||||
Be determined to deliver results with speed, excellence and a passion to succeed
|
|||||
Create value by transforming knowledge and ideas into differentiated products and services for our customers
|
|||||
Make connections to work as one global team, embracing unique perspectives and treating others with dignity and respect
|
|||||
2
|
2021 Proxy Statement
|
|
In 2020, our team executed with incredible speed at scale to lead the industry in supporting our customers and enabling the societal response to the pandemic, delivering exceptional results while significantly strengthening the long-term growth trajectory of the company:
•Revenue grew 26% to $32.22 billion
•GAAP diluted EPS increased 74% to $15.96 and adjusted EPS* increased 58% to $19.55
•GAAP operating income grew by 70% to $7.79 billion and adjusted operating income* grew by 60% to $9.56 billion
•And we generated free cash flow* of $6.82 billion
|
We also continued to effectively deploy our capital in 2020 to create significant shareholder value by:
•Returning capital of $1.8 billion through $1.5 billion of stock buybacks and $300 million of dividends
•Committing $1.7 billion to capital expenditures to support near- and long-term growth opportunities across our businesses
•Entering into a strategic partnership with CSL to expand our biologics capacity and during the first quarter of 2021, we acquired Novasep’s viral vector manufacturing business and Mesa Biotech, a point-of-care molecular diagnostics provider
|
|||||||
All of these achievements are designed to make Thermo Fisher Scientific a stronger partner for our customers. And when we help them achieve their goals, society benefits. Here are some recent examples:
•We’ve led the industry in supporting customers around the world who are battling COVID-19 with instruments, assays, equipment, pharma services and personal protective equipment to enable research of the virus, diagnostic testing, rapid vaccine and therapy development and the protection of citizens.
•For a cleaner world, our gas analyzers are being used in South Korea to detect impurities in electronics manufacturing and help minimize potential environmental impact.
•To support the safe reopening of historically Black colleges and universities, we launched the Just Project in August, with a donation of more than $25 million in COVID-19 diagnostic instruments, test kits and related supplies to enable on-campus testing.
|
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2021 Proxy Statement
|
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3
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4
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2021 Proxy Statement
|
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|
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Deliberate, Assess, and Prepare
•Our Board assesses and monitors:
–investor sentiment
–shareholder voting results
–trends in governance, executive compensation, human capital management, regulatory, environmental, social, and other matters
•Our Board identifies and prioritizes potential topics for shareholder engagement
|
|
Outreach and Engagement
•Management regularly meets with shareholders to actively solicit input on a range of issues, and report shareholder views to our Board
•Management routinely engages with investors individually, as well as at conferences and other forums
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||||||
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|||||||
Respond
•Our Board responds, as appropriate, with enhancements to policy, practices, and disclosure
•For more information on governance enhancements informed by shareholder input, please see page 38
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Evaluate
•Shareholder input informs our Board’s ongoing process of continually improving governance and other practices
•Our Board and management review shareholder input to identify consistent themes, and research and evaluate any identified issues and concerns
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2021 Proxy Statement
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5
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Proposal 1
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|||||||||||||||||
Election of directors
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|||||||||||||||||
We are asking our shareholders to elect each of the 12 director nominees identified below to serve until the 2022 Annual Meeting of shareholders.
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|
||||||||||||||||
The Board recommends a vote FOR each director nominee.
|
See page 12
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||||||||||||||||
Director
Since |
Committee Membership | |||||||||||||||||||||||||
Director Nominee | Age | AC | CC | NCGC | SFC | STC | ||||||||||||||||||||
|
Marc N. Casper
Chairman, President and Chief Executive Officer,
Thermo Fisher Scientific
|
53 | 2009 |
¡
|
¡
|
|||||||||||||||||||||
|
Nelson J. Chai Independent
Chief Financial Officer, Uber Technologies Inc.
|
55 | 2010 |
l
|
¡
|
|||||||||||||||||||||
|
C. Martin Harris Independent
Associate Vice President of the Health Enterprise and Chief Business Officer, Dell Medical School at the University of Texas at Austin
|
64 | 2012 |
¡
|
¡
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|||||||||||||||||||||
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Tyler Jacks
David H. Koch Professor of Biology at the Massachusetts Institute of Technology and Director of the David H. Koch Institute for Integrative Cancer Research
|
60 | 2009 |
¡
|
l
|
|||||||||||||||||||||
|
R. Alexandra Keith Independent
Chief Executive Officer of Procter & Gamble’s global Beauty business
|
53 | 2020 |
¡
|
||||||||||||||||||||||
|
Thomas J. Lynch (Lead Director) Independent
Chairman of the Board and Former Chief Executive Officer, TE Connectivity Ltd.
|
66 | 2009 |
¡
|
||||||||||||||||||||||
|
Jim P. Manzi Independent
Chairman, Stonegate Capital
|
69 | 2000 |
¡
|
||||||||||||||||||||||
|
James C. Mullen
Chairman, President and Chief Executive Officer of Editas Medicine, Inc., Former Chief Executive Officer of Patheon N.V. and Former Chief Executive Officer of Biogen Inc.
|
62 | 2018 |
¡
|
||||||||||||||||||||||
|
Lars R. Sørensen Independent
Former President and Chief Executive Officer,
Novo Nordisk A/S
|
66 | 2016 |
l
|
¡
|
|||||||||||||||||||||
|
Debora L. Spar Independent
Professor, Harvard Business School
|
57 | 2019 |
¡
|
¡
|
|||||||||||||||||||||
|
Scott M. Sperling Independent(1)
Co-CEO, Thomas H. Lee Partners, LP
|
63 | 2006 |
¡
|
l
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|||||||||||||||||||||
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Dion J. Weisler Independent
Former President and Chief Executive Officer, HP Inc.
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53 | 2017 |
¡
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l
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AC Audit CC Compensation NCGC Nominating and Corporate Governance
|
||||||||||||||
SFC Strategy and Finance STC Science and Technology
|
l
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Chair |
¡
|
Member |
6
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2021 Proxy Statement
|
|
2021 Proxy Statement
|
|
7
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|
|||||||||||||||||
Proposal 2
|
|||||||||||||||||
Approval of an advisory vote on executive compensation
|
|||||||||||||||||
We are asking our shareholders to cast a non-binding, advisory vote on the compensation of the executive officers named in the Summary Compensation Table. In evaluating this year’s “say on pay” proposal, we recommend that you review our Compensation Discussion and Analysis, which explains how and why the Compensation Committee of our Board arrived at its executive compensation actions and decisions for 2020.
|
|
||||||||||||||||
The Board recommends a vote FOR this proposal.
|
See page 39
|
||||||||||||||||
8
|
2021 Proxy Statement
|
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What We Do
|
What We Don’t Do
|
|||||||
ü Benchmark compensation levels against appropriate companies operating in similar industries, of a similar size and business complexity
ü Reference the market median when reviewing compensation for our Named Executive Officers
ü Clawback policy for the recoupment of compensation in certain situations
ü Regular shareholder engagement related to compensation
ü Caps under our performance-based incentive plans (annual cash incentive payout limit* and share cap under performance-based long-term plans)
ü Robust stock ownership requirements
ü Two year holding requirement on 50% of net stock vesting under the CEO’s time-and performance-based restricted stock units
ü Engage an independent compensation consultant
ü Deliver the majority of compensation in the form of at-risk, variable pay
ü Align pay with performance and Company strategy
ü Double-trigger change in control provisions
|
û No tax gross ups
û No plans that encourage excessive risk
û No guaranteed pay increases
û No guaranteed bonuses or equity awards
û No dividends paid on equity awards prior to vesting
û No hedging or pledging of Company stock
û No excessive perquisites
û No pension or SERPs (with the exception of legacy accumulated benefits from acquired companies)
|
|||||||
2021 Proxy Statement
|
|
9
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|||||||||||||||||
Proposal 3
|
|||||||||||||||||
Ratification of the selection of the independent auditors
|
|||||||||||||||||
We are asking our shareholders to ratify our Audit Committee’s selection of PricewaterhouseCoopers LLP (“PwC”) to act as the independent auditors for Thermo Fisher for 2021. Although our shareholders are not required to approve the selection of PwC, our Board believes that it is advisable to give our shareholders an opportunity to ratify this selection.
|
|
||||||||||||||||
The Board recommends a vote FOR this proposal.
|
See page 72
|
||||||||||||||||
10
|
2021 Proxy Statement
|
|
U
|
|||||||||||||||||
Proposal 4
|
|||||||||||||||||
A shareholder proposal regarding the right to call special meetings
|
|||||||||||||||||
One of our shareholders is requesting that the Board of Directors amend our bylaws to give holders with an aggregate of 15% of our outstanding common stock the right to call a special meeting. |
|
||||||||||||||||
The Board recommends a vote AGAINST this proposal.
|
See page 75
|
||||||||||||||||
2021 Proxy Statement
|
|
11
|
|
|||||||||||
Proposal 1
|
|||||||||||
Election of directors
|
|||||||||||
We are asking our shareholders to elect each of the 12 director nominees identified below to serve until the 2022 Annual Meeting of shareholders.
|
|||||||||||
The Board recommends a vote FOR each director nominee.
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|||||||||||
12
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2021 Proxy Statement
|
|
2021 Proxy Statement
|
|
13
|
Casper
|
Chai
|
Harris
|
Jacks
|
Keith
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Lynch
|
Manzi
|
Mullen
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Sørensen
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Spar
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Sperling
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Weisler
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Strategic Leadership
Experience driving strategic direction and growth of an organization
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CEO Leadership
Experience serving as the Chief Executive Officer of a major organization
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Industry Background
Knowledge of or experience in the Company’s specific industry
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Public Company Board Service
Experience as a board member of another publicly-traded company
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Financial Acumen and Expertise
Experience or expertise in financial accounting and reporting or the financial management of a major organization
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International Experience
Experience doing business internationally
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Senior Management Leadership
Experience serving in a senior leadership role of a major organization (e.g., Chief Financial Officer, General Counsel, President, or Division Head)
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Corporate Finance and M&A Experience
Experience in corporate lending or borrowing, capital market transactions, significant mergers or acquisition, private equity, or investment banking
|
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14
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2021 Proxy Statement
|
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|
Professional Highlights
•Thermo Fisher Scientific Inc.
–Chairman, President and CEO (2020 - Present)
–President and CEO (2009 - 2020)
–Executive VP and COO (2008 - 2009)
–Executive VP (2006 - 2008)
Other current directorships: U.S. Bancorp (March 2016 - April 2021)
|
||||
Marc N. Casper
Chairman, President and CEO
Age: 53
Director since:
2009
Committees:
Strategy and Finance, Science and Technology
|
|||||
Director Qualifications
As the only member of the Company’s management to serve on the Board, Mr. Casper contributes a deep and valuable understanding of Thermo Fisher history and day-to-day operations. This contribution is stemmed further from Mr. Casper’s 20-plus years in the life sciences and healthcare equipment industry, and his long standing employment with the Company. Additionally, Mr. Casper’s experience as the Chief Executive Officer of the Company, and previously serving in various senior level management roles, enables him to provide strategic leadership skills and financial acumen and expertise that are invaluable to the Board.
|
|||||
|
Professional Highlights
•CFO, Uber Technologies Inc. (2018 - Present)
•President and CEO, The Warranty Group (2017 - 2018)
•President, CIT Group (2011 - 2015)
Other current directorships: None
|
||||
Nelson J. Chai
Independent
Age: 55
Director since:
2010
Committees:
Audit (Chair), Nominating and Corporate Governance
|
|||||
Director Qualifications
Mr. Chai’s broad background and experience makes him a suitable and valued member of our Board. Mr. Chai has held executive management positions in a variety of industries and organizations, including his current role as Chief Financial Officer of Uber Technologies Inc., a ridesharing company, and prior roles as President and CEO of The Warranty Group, a provider of specialty insurance products, and President of CIT Group, a financial institution. As a result of his vast background, Mr. Chai brings valuable CEO and strategic leadership, financial acumen and expertise, and accounting experience to our Board.
|
|||||
2021 Proxy Statement
|
|
15
|
|
Professional Highlights
•Associate VP and Chief Business Officer, University of Texas Austin, Dell Medical School (2016 - Present)
•Cleveland Clinic Hospital
–Chief Strategy Officer, The Cleveland Clinic Foundation (2009 - 2016)
–Chief Information Officer and Chairman, Information Technology Division (1996 - 2016)
–Staff Physician, Foundation Department of General Internal Medicine (1996 -2016)
Other current directorships: Invacare Corporation, Colgate-Palmolive Company and MultiPlan Corporation
Previously held directorships: HealthStream Inc.
|
||||
C. Martin Harris
Independent
Age: 64
Director since:
2012
Committees:
Nominating and Corporate Governance, Science and Technology
|
|||||
Director Qualifications
Dr. Harris provides valuable insight and perspective on the healthcare industry stemming from his current role as Chief Business Officer of Dell Medical School of the University of Texas, Austin, and his previous long-standing career as a physician and Chief Information Officer of Cleveland Clinic Hospital, and Chief Strategy Officer of the Cleveland Clinic Foundation. Dr. Harris has been a strategic leader in healthcare organizations, and also brings valuable board-level experience from his many years served on public company boards in the healthcare industry, including his service on various committees, including the Audit, Nominating and Corporate Governance, and Compensation Committees.
|
|||||
|
Professional Highlights
•President, Break Through Cancer (2021 - Present)
•Massachusetts Institute of Technology, Koch Institute
–Director, Center for Cancer Research (2001 - Present)
–Professor, Department of Biology and Center for Cancer Research (2000 - Present)
•Investigator, Howard Hughes Medical Institute (2002 - 2021)
Other current directorships: Amgen, Inc.
|
||||
Tyler Jacks
Age: 60
Director since:
2009
Committees:
Strategy and Finance, Science and Technology (Chair)
|
|||||
Director Qualifications
Dr. Jacks brings to the Board the benefits of his significant experience of many years in the cancer research industry. He has worked for over 28 years at Massachusetts Institute of Technology, as director of the Koch Institute, a cancer research center and as a professor in the Department of Biology. Dr. Jacks brings valuable board-level and industry specific experience from his years serving on public company boards in the biotechnology industry and as a member of multiple scientific advisory boards of biotechnology companies, pharmaceutical companies and academic institutions, including his service on various committees, such as the Audit, Compensation and Management Development, Corporate Responsibility and Compliance, and Nominating and Corporate Governance Committees.
|
|||||
|
Professional Highlights
•Procter & Gamble Company
–Chief Executive Officer - P&G Beauty (2019 - Present)
–President, Global Hair Care and Beauty Sector (2017 - 2019)
–President, Global Skin and Personal Care (2014 - 2017)
Other current directorships: None
|
||||
R. Alexandra Keith
Independent
Age: 53
Director since:
2020
Committees:
Nominating and Corporate Governance
|
|||||
Director Qualifications
Ms. Keith’s 30-plus years at Procter & Gamble, a global consumer products company, enables her to bring a unique perspective to the Company’s board of directors, including valuable executive management and strategic leadership skills, financial expertise, and international experience.
|
|||||
16
|
2021 Proxy Statement
|
|
|
Professional Highlights
•TE Connectivity, Ltd.
–Chairman (2013 - Present) (Director since 2006)
–Chief Executive Officer (2006 - 2017)
Other current directorships: TE Connectivity Ltd., Cummins Inc. and Automatic Data Processing, Inc.
|
||||
Thomas J. Lynch
Independent
Lead Director
Age: 66
Director since:
2009
Committees:
Compensation
|
|||||
Director Qualifications
Mr. Lynch’s many years as the former Chief Executive Officer of TE Connectivity Ltd., a comparably-sized global company in the consumer electronics industry, enables him to bring valuable experience to the Board, such as strategic leadership skills, financial expertise, and international experience. Mr. Lynch also brings valuable board-level experience from his service on public company boards, including his service on various committees, such as the Audit, Finance, Compensation, Governance and Nominating, and Corporate Development and Technology Advisory Committees.
|
|||||
|
Professional Highlights
•Chairman, Stonegate Capital (1995 - Present)
•Chairman, President and CEO, Lotus Development Corporation (1984 - 1995)
Other current directorships: None
|
||||
Jim P. Manzi
Independent
Age: 69
Director since:
2000
Committees:
Compensation
|
|||||
Director Qualifications
Mr. Manzi brings to the Board valuable strategic leadership skills, operational management expertise and overall business acumen, as a result of his senior-level management experience leading Lotus Development Corporation, as Chief Executive Officer, prior to its acquisition, and his current role as Chairman of Stonegate Capital, a private equity firm. Mr. Manzi also brings valuable knowledge of the Company due to his 20 years as a member of our Board, which we believe provides our Board with specific expertise and insight into our business.
|
|||||
|
Professional Highlights
•Chairman, President and Chief Executive Officer, Editas Medicine, Inc. (2021 - Present)
•Chief Executive Officer, Patheon N.V. (2011 - 2017)
•Chief Executive Officer, Biogen Inc. (2000 - 2010)
Other current directorships: Editas Medicine Inc.
Previously held directorships: Insulet Inc.
|
||||
James C. Mullen
Age: 62
Director since:
2018
Committees:
Strategy and Finance
|
|||||
Director Qualifications
Mr. Mullen brings valuable industry knowledge to the Board, due to his 35 years of extensive management experience and his senior leadership background in the pharmaceutical and biotechnology industries. Mr. Mullen currently serves as Chairman, President and Chief Executive Officer of Editas Medicine, a clinical-stage biotechnology company and previously served as Chief Executive Officer of Patheon N.V. and as Chief Executive Officer of Biogen Inc. We believe this experience provides our Board with specific expertise and insight into our business. Mr. Mullen also brings valuable board-level experience from his service on the boards of public companies in the pharmaceutical industry, including his service on various committees, such as the Compensation and Nominating and Corporate Governance Committees.
|
|||||
2021 Proxy Statement
|
|
17
|
|
Professional Highlights
•President and CEO, Novo Nordisk A/S (2000 - 2017)
Other current directorships: Essity Aktiebolag
Previously held directorships: Carlsberg AS
|
||||
Lars R. Sørensen
Independent
Age: 66
Director since:
2016
Previously served as a director:
2011 - 2015
Committees:
Nominating and Corporate Governance (Chair), Strategy and Finance
|
|||||
Director Qualifications
Mr. Sørensen brings to the Board valuable strategic leadership skills, financial expertise, industry background, and international experience as a result of his long-standing tenure as Chief Executive Officer at Novo Nordisk A/S, a global healthcare company. Mr. Sørensen also brings valuable board-level experience from his years of serving on public company boards in the life sciences industry, including his service on various committees, such as the Audit, Nominating, and Remuneration Committees.
|
|||||
|
Professional Highlights
•Professor, Harvard Business School (2018 - Present)
•President and CEO, Lincoln Center for the Performing Arts (2017 - 2018)
•President, Barnard College (2008 - 2017)
Other current directorships: None
Previously held directorships: Goldman Sachs
|
||||
Debora L. Spar
Independent
Age: 57
Director since:
2019
Committees:
Audit, Strategy and Finance
|
|||||
Director Qualifications
Dr. Spar brings to the Board valuable executive management and strategic leadership skills, financial expertise, and a unique perspective on technology’s role in shaping society and the global economy. Dr. Spar also brings valuable experience serving on public company boards, including her service on various committees, such as the Audit, Compensation, Nominating and Corporate Governance, and Strategy Committees.
|
|||||
|
Professional Highlights
•Co-Chief Executive Officer, Thomas H. Lee Partners, LP (1994 - Present)
Other current directorships: None
Previously held directorships: iHeart Media, Inc. and The Madison Square Garden Company
|
||||
Scott M. Sperling
Independent
Age: 63
Director since:
2006
Committees:
Compensation, Strategy and Finance
|
|||||
Director Qualifications
Mr. Sperling brings to the Board valuable strategic leadership skills, and corporate finance and acquisition experience due to his current role serving as Co-Chief Executive Officer of Thomas H. Lee Partners LP., a private equity firm. Mr. Sperling also brings valuable board-level experience from serving on public company boards, including his service on the Nominating and Corporate Governance Committees.
|
|||||
18
|
2021 Proxy Statement
|
|
|
Professional Highlights
•President and CEO, HP Inc. (2015 - 2019)
Other current directorships: BHP and Intel Corporation
Previously held directorships: HP, Inc.
|
||||
Dion J. Weisler
Independent
Age: 53
Director since:
2017
Committee:
Audit, Compensation (Chair)
|
|||||
Director Qualifications
Mr. Weisler brings to the Board valuable strategic and senior management leadership skills, financial expertise, international experience, and M&A experience due to his former role serving as Chief Executive Officer at HP Inc., an information technology company. Mr. Weisler also brings valuable board-level experience from his service on HP Inc.’s board.
|
|||||
2021 Proxy Statement
|
|
19
|
20
|
2021 Proxy Statement
|
|
Thermo Fisher
Transaction & 2020 Magnitude
|
||||||||||||||
Director
nominee
|
Organization
|
Relationship
|
Purchases from
Thermo Fisher
Less than the
greater of 2% of
the other company’s
revenue and $1m
|
Sales to
Thermo Fisher
Less than the
greater of 2% of
the other company’s
revenue and $1m
|
||||||||||
Chai
|
Uber Technologies Inc.
|
Chief Financial Officer |
N/A
|
|
||||||||||
Harris
|
University of Texas
|
Associate Vice President and Chief Business Officer |
|
N/A | ||||||||||
Jacks(2)
|
Howard Hughes Medical Institute |
Investigator(1)
|
|
|
||||||||||
Massachusetts Institute of Technology | Professor and Director of David H. Koch Institute of Integrative Research |
|
N/A | |||||||||||
Dragonfly Therapeutics, Inc. |
Greater than 10% equity owner
|
|
N/A | |||||||||||
Keith | Procter & Gamble | Chief Executive Officer - P&G Beauty |
|
|
||||||||||
Mullen(3)
|
Editas Medicine Inc.(4)
|
Chairman, President and Chief Executive Officer | û | N/A | ||||||||||
Spar |
Harvard University
|
Professor
|
|
|
2021 Proxy Statement
|
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21
|
The Board is committed to oversight of the Company’s business strategy and strategic planning, including work embedded in the Board committees, regular Board meetings and a dedicated meeting each year to focus on strategy.
|
|
This ongoing effort enables the Board to focus on Company performance over the short, intermediate and long term, as well as the quality of operations. In addition to financial and operational performance, non-financial measures are discussed regularly by the Board and Board committees.
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||||||
22
|
2021 Proxy Statement
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2021 Proxy Statement
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23
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Audit Committee
|
|||||
Nelson J. Chai (Chair)
Members
Debora L. Spar
Dion J. Weisler
Meetings in 2020: 12
•All members are independent, financially literate.
•Two members qualify as Audit Committee financial experts.
|
Principal Responsibilities
The Audit Committee is responsible for:
•assisting the Board in its oversight of the integrity of the Company’s financial statements;
•overseeing the Company’s compliance with legal and regulatory requirements;
•assessing the independent auditor’s qualifications and independence;
•overseeing the performance of the Company’s internal audit function and independent auditors;
•discussing with management the Company’s policies with respect to risk assessment and risk management, including guidelines and policies to govern the process by which the Company’s exposure to risk is handled;
•discussing with management the Company’s major financial risk exposures and steps management has taken to monitor and control such exposures;
•overseeing procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters; and the confidential, anonymous submission by our colleagues of concerns regarding questionable accounting or auditing matters; and
•reviewing cybersecurity and other risks relevant to the Company’s information system controls and security.
Certain responsibilities of our Audit Committee and its activities during 2020 are described in the Report of the Audit Committee in this proxy statement under the heading “Audit Committee report.”
2020 Key Activities
•Received updates on calls received on the Company’s whistleblower hotline
•Received updates on cybersecurity
•Received updates on emerging markets
•Received an update on outstanding litigation and environmental matters and reviewed the appropriateness of related reserves
|
||||
|
Cybersecurity oversight
The Board recognizes the importance of maintaining the trust and confidence of our customers and colleagues. To more effectively prevent, detect and respond to information security threats, the Company has a dedicated Chief Information Security Officer whose team is responsible for leading enterprise-wide information security strategy, policy, standards, architecture and processes. Both the Audit Committee and the full Board receive regular reports from the Chief Information Security Officer and the Chief Information Officer on, among other things, the Company’s cyber risks and threats, the status of projects to strengthen the Company’s information security systems, assessments of the Company’s security program and the emerging threat landscape.
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||||
24
|
2021 Proxy Statement
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Compensation Committee | |||||
Dion J. Weisler (Chair)
Members
Thomas J. Lynch
Jim P. Manzi
Scott M. Sperling
Meetings in 2020: 8
•All members are independent.
|
Principal Responsibilities
The Compensation Committee is responsible for:
•reviewing and approving compensation matters with respect to the Company’s chief executive officer and its other officers;
•reviewing and recommending to the Board management succession plans;
•administering equity-based plans; and
•overseeing the process for conducting annual risk assessments of the Company’s compensation policies, programs, and practices.
Certain responsibilities of our Compensation Committee and its activities during 2020 are described in this proxy statement under the heading “Compensation discussion and analysis.” The Compensation Committee also biennially reviews our director compensation, and makes recommendations on this topic to the Board as it deems appropriate, as described under the heading “Compensation of directors.”
Role of Consultant
The Compensation Committee has sole authority to retain and terminate a compensation consultant to assist in the evaluation of CEO or senior executive compensation. In 2020, the Committee in its sole discretion retained Pearl Meyer & Partners, LLC (“Pearl Meyer”) as its independent compensation consultant. Pearl Meyer does not provide any other services to the Company and the Compensation Committee has determined that Pearl Meyer’s work for the Compensation Committee does not raise any conflict of interest.
The consultant compiles information regarding the components and mix (short-term/ long-term; fixed/variable; cash/equity) of the executive and director compensation programs of the Company and its peer group (see page 43 of this proxy statement for further detail regarding the peer group), analyzes the relative performance of the Company and the peer group with respect to the financial metrics used in the programs, and provides advice to the Compensation Committee regarding the Company’s programs. The consultant also provides information regarding emerging trends and best practices in executive compensation and director compensation and input on the Company’s proxy disclosures. The Committee considers this information when making decisions about compensation levels and design.
The consultant retained by the Compensation Committee reports to the Compensation Committee Chair and has direct access to Committee members. The consultant periodically meets with members of the Committee either in person or by telephone.
In addition, the Committee has access to data from other outside firms, such as market surveys and analyses, to stay informed of developments in the design of compensation packages generally and to understand the officer compensation programs of companies with whom we compete for executive talent to ensure our compensation program is in line with current marketplace standards.
2020 Key Activities
•Reviewed compensation programs to ensure the design supports the talent needs of the Company by attracting the talent needed for both today and in the future
•Adopted a new Clawback Policy
•Reviewed compensation in response to the COVID-19 pandemic
|
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2021 Proxy Statement
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25
|
Nominating and Corporate Governance Committee
|
|||||
Lars R. Sørensen (Chair)
Members
Nelson J. Chai
C. Martin Harris
R. Alexandra Keith
Meetings in 2020: 4
•All members are independent.
|
Principal Responsibilities
The Nominating and Corporate Governance Committee is responsible for:
•identifying persons qualified to serve as members of the Board;
•recommending to the Board persons to be nominated by the Board for election as directors at the annual meeting of shareholders;
•recommending to the Board the directors to be appointed to each of its committees;
•overseeing the Company’s corporate responsibility and sustainability efforts and associated risks;
•developing and recommending to the Board a set of corporate governance guidelines; and
•overseeing the annual self-evaluation of the Board.
2020 Key Activities
•Evaluated potential candidates for future election to the Board and nominated R. Alexandra Keith for election
•Reviewed the Company’s corporate social responsibility progress, roadmap and key initiatives in depth during two of its meetings
•Oversaw the evaluation process for the Board and its committees, which consisted of an in-depth interview of each director by Mr. Sørensen
•Received an update on corporate governance trends and best practices
•Made governance enhancements to the Corporate Governance Guidelines
|
||||
Strategy and Finance Committee
|
|||||
Judy C. Lewent (Chair)
Members
Marc N. Casper
Tyler Jacks
James C. Mullen
Lars Sørensen
Debora L. Spar
Scott M. Sperling*
|
Principal Responsibilities
The Strategy and Finance Committee is responsible for:
•overseeing the development of an annual strategic plan for the Company;
•reviewing significant strategic decisions; and
•overseeing certain of the Company’s material financial matters, including investments and acquisitions and divestitures that are material to the Company’s business.
2020 Key Activities
•Approved an increase in the Company’s cash dividend to stockholders
•Amended the Global Investment Policy
•Replenished the share repurchase program
•Approved a new revolving credit facility
|
||||
26
|
2021 Proxy Statement
|
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Science and Technology Committee
|
|||||
Tyler Jacks (Chair)
Members
Marc N. Casper
C. Martin Harris
|
Principal Responsibilities
The Science and Technology Committee is responsible for:
•assisting the Board in staying abreast of new technologies, markets and applications for the Company’s products;
•overseeing the Company’s Scientific Advisory Board; and
•monitoring and evaluating trends in science and recommending to the Board emerging technologies for building the Company’s technological strength.
2020 Key Activities
•Effected composition changes to Scientific Advisory Board members
•Reviewed topics covered by the Scientific Advisory Board
|
||||
Evaluation survey
Form is sent by the N&CG Committee Chair to each board member to request feedback on various topics
|
|
One-on-one director discussions
Individual calls with the N&CG Committee Chair held with each director to obtain candid feedback
|
|
Group discussion
Discussion of evaluation led by the N&CG Committee Chair and summary of assessment is provided to Board
|
|
Feedback communicated and acted upon
Feedback is provided to management by the N&CG Committee Chair on areas for improvement and changes are implemented
|
||||||||||||||
2021 Proxy Statement
|
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27
|
Board composition, performance, and materials
|
|
•Board and committee composition and performance, including mix of skills, experience, tenure, and background
•Identification of knowledge, background, and skill-sets that would be useful additions to the Board
•Board refreshment and succession planning
•Board materials and management reporting, including the quality of materials and Board member interactions with management
|
||||||
Structure and effectiveness
|
|
•Board and committee leadership, responsibilities, and effectiveness
•Committee structure and functioning, responsibilities, communication, and reporting from committees to the Board
•Effectiveness of meeting structure
•Board’s ability to operate and conduct its business successfully and efficiently via virtual meetings due to COVID-19
|
||||||
Board responsibilities
|
|
•Knowledge of the Company
•Strategic planning, including the process, format, and materials for the Board’s strategy review sessions
•Talent management and succession planning for the CEO and other senior management, including diversity and inclusion
•Candor of communications with the CEO
|
||||||
28
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2021 Proxy Statement
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2021 Proxy Statement
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29
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30
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2021 Proxy Statement
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2021 Proxy Statement
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31
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Name
|
Fees
Earned or
Paid in Cash
($)
|
Stock
Awards
($)(1)
|
Option
Awards
($)
|
Change in
Pension Value
and Nonqualified
Deferred
Compensation
Earnings
|
All Other
Compensation
($)(2)
|
Total
($)
|
||||||||||||||||||||
Nelson J. Chai
|
$150,000 | $195,138 | — | — | $10,535 |
(3)
|
$355,673 | |||||||||||||||||||
C. Martin Harris
|
$125,000 | $195,138 | — | — | $5,663 |
(4)
|
$325,801 | |||||||||||||||||||
Tyler Jacks
|
$140,000 | $195,138 | — | — | $15,535 |
(5)
|
$350,673 | |||||||||||||||||||
R. Alexandra Keith(6)
|
$13,672 |
(7)
|
$— | — | — | $— | $13,672 | |||||||||||||||||||
Judy C. Lewent
|
$140,000 | $195,138 | — | — | $16,186 |
(8)
|
$351,324 | |||||||||||||||||||
Thomas J. Lynch
|
$161,023 | $195,138 | — | — | $15,535 |
(5)
|
$371,696 | |||||||||||||||||||
Jim P. Manzi
|
$152,045 | $195,138 | — | — | $15,535 |
(5)
|
$362,718 | |||||||||||||||||||
James C. Mullen
|
$125,000 | $195,138 | — | — | $535 | $320,673 | ||||||||||||||||||||
Lars R. Sørensen
|
$140,000 | $195,138 | — | — | $535 | $335,673 | ||||||||||||||||||||
Debora L. Spar
|
$125,000 | $195,138 | — | — | $1,378 |
(9)
|
$321,516 | |||||||||||||||||||
Scott M. Sperling(10)
|
$125,000 |
(11)
|
$195,138 | — | — | $29,450 |
(12)
|
$349,588 | ||||||||||||||||||
Elaine S. Ullian(13)
|
$49,107 |
|
$— | — | — | $6,701 |
(14)
|
$55,808 | ||||||||||||||||||
Dion J. Weisler
|
$137,614 |
|
$195,138 | — | — | $2,101 |
(15)
|
$334,853 |
32
|
2021 Proxy Statement
|
|
|
|
|
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We take measures to ensure strong global citizenship practices across our operations and our stakeholder relationships. We are committed to conducting our business ethically and in full compliance with our internal systems and the laws of the countries where we operate. We apply rigor around governance and ethics; supply chain transparency; environmental, health and safety regulations; and quality management standards. |
|
$707M
spend with certified diverse and/or small suppliers |
||||||
2021 Proxy Statement
|
|
33
|
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220 B/ERG chapters globally | Key partners in attracting, developing and retaining diverse talent are our Business/Employee Resource Groups (“B/ERGs”). These company-supported groups of colleagues support our strategy to bring an essential variety of experiences and perspectives into the Company so they may be leveraged across the organization. B/ERGs are championed by an executive sponsor and collaborate with the global D&I team to foster organizational culture, reinforce infrastructure and create personal accountability. We have ten B/ERGs represented by 220 chapters, including the African Heritage, Asian American, Latino Hispanic Heritage, LGBTA, Millennials, PossAbilities, Women’s, Working Parent and Veterans ERGs and the Data Science BRG. | ||||||
|
84% participation in EIS | |||||||
As part of the Company’s commitment to Diversity and Inclusion, we will begin publishing additional global diversity and talent data on our website in 2021, including our annual EEO-1 report.
|
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34
|
2021 Proxy Statement
|
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65,000 colleague volunteer hours contributed through engagement with our communities worldwide
|
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210,000 students impacted by adapting our STEM education work for remote learning and pandemic response | ||||||||
2021 Proxy Statement
|
|
35
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Our efforts to protect the environment start with our own operations. We focus on the efficient use of resources in running our business and the reduction of our impact in the communities where we operate. Our commitment to sustainability, together with an engaged colleague base and a culture of continuous improvement, inspires innovations that reduce the energy and water we consume and the waste we generate.
The past year has called for mission critical expansions in infrastructure, capacity and capabilities. That growth is coupled with our corporate commitment to reduce our carbon footprint. We continue to operationalize plans that will drive a 30% reduction in our scope 1 and 2 emissions by the end of the decade. Our approach to achieving this target is anchored in the framework of process optimization, built environment efficiency and renewable sourcing.
|
30% reduction in greenhouse gas emissions by 2030
|
||||
36
|
2021 Proxy Statement
|
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2021 Proxy Statement
|
|
37
|
What We Learned from our Meetings with Shareholders
|
||
•Shareholders appreciated being engaged on governance in general and specifically on executive compensation policies and design, corporate governance issues and environmental and social issues.
•A strong majority of the institutional shareholders we spoke with expressed support for our executive compensation program and generally commented that they viewed it as aligned with performance and shareholder interests.
•Some investors preferred we use a three-year performance metric in our long term incentive program, instead of the one-year performance metric we have used in prior years.
•Some shareholders requested that we adopt a special meeting right for shareholders.
•Some shareholders requested that we limit the number of outside boards on which our directors may sit.
•Some shareholders preferred a higher stock ownership requirement for our CEO and other executive officers.
•Shareholders understand our Mission and the role that our environmental, social and governance (“ESG”) practices play in that. They acknowledged our strong ESG practices.
•Investors were generally seeking additional information on our diversity and inclusion initiatives and the diversity of our Board of Directors, and some suggested we begin publishing on our website the data included in our EEO-1 report, which includes a breakdown of the diversity of our workforce.
|
||
Governance and Compensation Enhancements Informed by Shareholder Input
|
||
Our Board evaluates and reviews input from our shareholders in considering their independent oversight of management and our long-term strategy. As part of our commitment to constructive engagement with investors, we evaluate and respond to the views voiced by our shareholders. Our dialogue has led to enhancements in our corporate governance, ESG, and executive compensation activities, which our Board believes are in the best interest of the Company and our shareholders. For example, after considering input from shareholders and other stakeholders, we:
•Continued to enhance our shareholder engagement efforts to include a greater number of discussions regarding corporate governance, executive compensation and environmental and social issues, by increasing the number and frequency of meetings among management from our investor relations, governance and compensation and corporate social responsibility teams and shareholders to gather feedback on the Company’s ESG efforts.
•Amended our Corporate Governance Guidelines to include the following:
•a limit on the number of boards on which our directors may sit
•a requirement that our Nominating and Corporate Governance Committee seek to include diverse candidates including women and minority candidates, in the pool of candidates from which it recommends director nominees
•an increase in the stock ownership requirement for our CEO and other executive officers.
•Expanded the clawback in our equity awards to allow the Company to recoup compensation in additional circumstances.
•Elected R. Alexandra Keith to our Board of Directors.
•Amended our Bylaws to provide our shareholders with the right to call a special meeting.
•Beginning with our 2021 equity grant, included a 3-year performance period in our performance RSU program, in the form of a total shareholder return (“TSR”) modifier.
•Beginning this year, will publish our workforce diversity data (our EEO-1 Report) on our website annually.
|
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38
|
2021 Proxy Statement
|
|
|
|||||||||||
Proposal 2
|
|||||||||||
Approval of an advisory vote on executive compensation
|
|||||||||||
Your board of directors recommends a vote FOR approving the compensation of our Named Executive Officers.
|
|||||||||||
2021 Proxy Statement
|
|
39
|
Named Executive Officer
|
Title
|
Date of Appointment
to Current Role
|
Tenure
|
||||||||
Marc N. Casper
|
Chairman, President and Chief Executive Officer
|
October 2009
|
19 years | ||||||||
Stephen Williamson
|
Senior Vice President and Chief Financial Officer
|
August 2015
|
19 years | ||||||||
Mark P. Stevenson |
Executive Vice President and Chief Operating Officer
|
August 2017
|
29 years | ||||||||
Michel Lagarde |
Executive Vice President
|
September 2019
|
5 years | ||||||||
Syed A. Jafry |
Senior Vice President and President, Regions
|
September 2017
|
16 years |
40
|
2021 Proxy Statement
|
|
September
Actions
|
October
Actions
|
December
Actions
|
Annual Awards for 2020
Performance
|
Additional
Actions |
||||||||||||||||||||||
Colleagues: Awarded with trued up salary and merit through commensurate lump sum payments equivalent to the value of their previous reduction/deferral
NEOs: As above
|
Colleagues: Recognized colleagues with a one-time “Thank You” payment in cash, or restricted stock units, depending on level
NEOs: Not eligible
|
Colleagues: Awarded colleagues with a cash payment based on percentage of base pay
NEOs: Not eligible
|
Colleagues: Those participating in the annual incentive plan described below for NEOs benefited from very strong funding in recognition of the Company’s exceptional achievements in 2020
NEOs: The annual incentive plan was funded above 200% for the first time in our history, reflecting the truly exceptional achievements in 2020. Annual cash incentive payments for NEOs ranged from 250%-275% of target
|
Colleagues: In early 2021, instituted a “Pandemic Response Recognition Payment” to further compensate colleague efforts based on financial and business performance in 2020 and continued efforts moving into 2021
NEOs: Not eligible
|
2021 Proxy Statement
|
|
41
|
Q1
•Review of executive bonus pool
•Review Company and NEO performance and approve year-end compensation (annual bonus and equity programs)
•Approve annual equity incentive program performance metric selection for current year
•Approve officer cash compensation (base salary) and target bonus for current year
•Proxy statement review
•Conduct annual risk assessment on our global compensation programs and policies
|
|
Q2
•Review proxy advisory firms’ analyses of current proxy statement
•Discuss investor outreach regarding executive compensation
•Propose director equity grants for current year
|
||||||
|
|
|||||||
Q4
•Committee self-evaluation
•Committee charter review
•Equity program and pool review
•Consider shareholder feedback from outreach discussions
|
|
Q3
•Management talent and succession plan review and discussion
•Confirmation of compensation peer group
•Engagement of independent compensation consultant
•Review results of executive competitive assessment
•Confirmation of executive compensation philosophy/review of potential changes
|
||||||
42
|
2021 Proxy Statement
|
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2021 Proxy Statement
|
|
43
|
Base Salary
|
median
|
||||||||||
Target Total Cash(1)
|
median
|
||||||||||
Target Direct Compensation(2)
|
median
|
||||||||||
Target Compensation(3)
|
median
|
Support long-term view and sustainability of Company
|
•Equity compensation in the form of stock options and restricted stock units
•Stock ownership requirement (increased in 2020)
•Stock holding requirement on 50% of shares delivered upon vesting applied to all CEO time- and performance-based restricted stock units
|
|||||||
Ability to take action to affect current and recoup prior compensation
|
•Full Committee discretion to reduce awards and payouts under our annual incentive plan and stock incentive plans to zero for certain conduct detrimental to the Company
•Clawback policy (expanded in 2020)
|
|||||||
Committee Oversight
|
•Annual risk assessment presented to the Committee by General Counsel and VP Executive Compensation
•Assessment considers program design and payouts
|
44
|
2021 Proxy Statement
|
|
Measure
|
Why It Matters
|
||||
Quantitative
|
|||||
Organic revenue
|
•Reflects top line financial performance, which is a strong indicator of our long-term ability to drive shareholder value
•Allows comparison of financial results to both acquisitive and non-acquisitive peer companies
•Prevalent, industry-relevant measure of growth
|
||||
Adjusted net income
|
•Reflects achievement of our strategic goals by encouraging efficient operations and resource allocations, in order to maximize earnings relative to the revenue environment
•Ensures all colleagues can contribute to profitability of the Company
|
||||
Adjusted earnings per share (“adjusted EPS”)
|
•Prevalent, industry-relevant measure of delivery of shareholder value
•Metric is closely followed by shareholders, analysts and investors
|
||||
Adjusted operating income as a percentage of revenue (“adjusted operating margin”)
|
•Prevalent, industry-relevant measure of profitability
•Reflects achievement of our strategic goals by encouraging efficient operations and resource allocations, in order to maximize earnings relative to the revenue environment
•Ensures all colleagues can contribute to profitability of the Company
|
||||
Free cash flow
|
•Reflects quality of earnings and cash flows that may be reinvested in our businesses, used to make acquisitions, or returned to shareholders in the form of dividends and/or share repurchases
|
||||
Total Shareholder Return
|
•Offers clear alignment between the interests of management and shareholders
•Summary indicator of long-term performance
•Relative (as opposed to absolute) nature of goals accounts for macroeconomic factors impacting the broader market
|
||||
Qualitative
|
|||||
Customer allegiance
|
•Strong indicator of our long-term ability to drive shareholder value
|
||||
Employer of choice/diversity
|
•Ensuring the Company remains focused on attracting and retaining high potential colleagues and enhancing workforce diversity is important to ensure our ability to execute our other goals
|
||||
Positioning for future revenue growth
|
•Strong indicator of our long-term ability to drive shareholder value by effectively meeting the needs of our customers in all of the end markets that we serve
|
||||
Positioning for future margin expansion
|
•Drives strong future profitability
|
||||
Effectively execute capital deployment strategy
|
•Properly managing the strategic use of capital through acquisitions, dividends, share repurchases and debt repayment is of paramount importance to the Company’s long-term financial health
|
2021 Proxy Statement
|
|
45
|
Performance Measure
|
Definition
|
||||
Organic revenue
|
Reported revenue adjusted for the impact of acquisitions and divestitures and for foreign currency changes | ||||
Adjusted operating income as a percentage of revenue (“adjusted operating margin”)
|
Operating income before certain charges/credits to cost of revenues and selling, general and administrative expenses, principally associated with acquisition-related activities, restructuring and other costs/income including costs arising from facility consolidations such as severance and abandoned lease expense and gains and losses from the sale of real estate and product lines; and amortization of acquisition-related intangible assets; as a percentage of revenue | ||||
Adjusted net income
|
Earnings before certain charges/credits to cost of revenues and selling, general and administrative expenses, principally associated with acquisition-related activities, restructuring and other costs/income including costs arising from facility consolidations such as severance and abandoned lease expense and gains and losses from the sale of real estate and product lines; amortization of acquisition-related intangible assets; and other gains and losses that are either isolated or cannot be expected to occur again with any predictability, tax provisions/benefits related to the previous items and the impact of significant tax audits or events | ||||
Adjusted earnings per share (“adjusted EPS”)
|
Adjusted net income per share | ||||
Free cash flow
|
Operating cash flow net of capital expenditures |
46
|
2021 Proxy Statement
|
|
Element
|
Purpose
|
Key Features
|
||||||
Base salary
|
Provide competitive, fixed compensation to attract and retain the best possible executive talent |
•Cash-based
•Reviewed annually; changes generally effective March/April
•Reference market median for all NEOs
•Takes account of level of responsibility, time in role, performance and the ability to replace the individual
|
||||||
Annual cash incentive bonus
|
Align executive compensation with our corporate strategies and business objectives; promote the achievement of key strategic and financial performance measures by linking annual cash incentives to the achievement of corporate performance goals |
•Cash-based
•Reference market median for all NEOs for target total cash (base salary plus target annual incentive)
•Maximum opportunity 2-times target*
•Based on performance goals tied to organic revenue growth, adjusted operating margin, adjusted net income, free cash flow, and a selection of strategic measures
|
||||||
Long-term incentives
|
Align executive compensation with our corporate strategies and business objectives; motivate the Company’s officers to create sustainable long-term value for our shareholders and achieve other business objectives; encourage stock ownership by the Company’s officers in order to align their financial interests with the long-term interests of our shareholders |
•Equity-based
•Granted in a combination of
–Performance-based restricted stock units;
–Time-based restricted stock units; and
–Time-based stock options
•Reference market median for all NEOs for target direct compensation (target total cash plus the grant date value of long-term incentives)
•Based on performance goals tied to organic revenue growth and adjusted EPS (performance-based restricted stock units)
•Legacy award of performance-based stock options, subject to five-year relative TSR performance over four periods spanning 2013 – 2020
•Award of performance-based stock options, subject to five-year relative TSR performance over three periods spanning 2017 - 2023
|
2021 Proxy Statement
|
|
47
|
n Base Salary
|
n Bonus
|
n Equity
|
n Base Salary
|
n Bonus
|
n Equity
|
48
|
2021 Proxy Statement
|
|
Named Executive Officer
|
2019 Base Salary
|
2020 Base Salary
(Effective March 23, 2020)
|
Increase
|
||||||||
Marc N. Casper
|
$1,550,000 | $1,550,000 | 0.0% | ||||||||
Stephen Williamson
|
$700,000 | $900,000 | 28.6% | ||||||||
Mark P. Stevenson
|
$1,050,000 | $1,090,000 | 3.8% | ||||||||
Michel Lagarde
|
$850,000 | $925,000 | 8.8% | ||||||||
Syed A. Jafry
|
$650,000 | $665,600 | 2.4% |
Financial
|
|
•Organic revenue growth (35%)
•Adjusted operating margin (15%)
•Adjusted net income (15%)
•Free cash flow (5%)
|
||||||
Non-financial
|
|
Overall goal: Deliver on our commitments to all stakeholders and advance our position as the world leader in serving science
•Customer allegiance
•Positioning the Company for accelerated revenue growth and margin expansion
•Employer of choice and workforce diversity
•Capital deployment strategy
|
2021 Proxy Statement
|
|
49
|
Financial Performance Score: 200%
|
|||||
Organic Revenue Growth (35%)
|
|||||
•Given the economic climate that existed at the time the goals were set due to the potential recessionary and other financial impacts of the pandemic, the threshold level of performance required was 2.5%, which equated to a payout of 0%
•For each 0.5% of organic revenue growth above the threshold, the payout increased proportionately by 25 percentage points to 5.5% organic revenue growth
•To reflect the additional investment and effort required, for exceptional growth between 5.5% and 6.0%, the payout increased proportionately by 25 percentage points for each 0.25% increase in organic revenue growth up to a maximum opportunity of 200%
•Actual organic revenue growth for the year was 25.4%, resulting in an earned factor of 200% for this element
|
|||||
Adjusted Operating Income as a Percentage of Revenue (15%)
|
|||||
•The payout factors for this element link the variation in organic revenue growth to margin expansion, meaning that the “threshold” and “maximum” performance requirements (whether expressed as dollars or as a percentage) varied directly with actual organic revenue growth achievement
•Regardless, the maximum payout in respect of this element is capped at 200%
•The baseline goal, assuming target organic growth of 4.5%, was 23.57% of revenue. The payout factors for this metric recognize the incremental costs required to achieve accelerated organic revenue growth, and reflect the greater difficulty in achieving margin expansion on lower organic revenue
•Actual adjusted operating income as a percentage of revenue for the year was 29.7%, resulting in an earned factor of 200% for this element
|
|||||
Adjusted Net Income (15%)
|
|||||
•The threshold level of performance required was $5,270 million, which equated to a payout of 0%
•For each additional $24 million of adjusted net income, the payout increased proportionately by 25 percentage points to adjusted net income of $5,463 million
•Regardless, the maximum payout in respect of this element is capped at 200%
•Actual adjusted net income for the year was $7,810 million, resulting in an earned factor of 200% for this element
|
|||||
Free Cash Flow (5%)
|
|||||
•The threshold level of performance required was $4,400 million, below which no payout is earned
•For free cash flow between $4,400 million and $4,499 million a payout of 100% is achieved, with a maximum payout achieved for free cash flow at or above $4,500 million
•Regardless, the maximum payout in respect of this element is capped at 200%
•Actual free cash flow for the year was $6,823 million, resulting in an earned factor of 200% for this element
|
|||||
Achievement Earned on Financial Performance Element
|
||||||||
Based on the weighted average of the organic revenue, adjusted operating margin, adjusted net income and free cash flow payouts noted above, the Committee concluded an overall achievement of 200% of target was earned for the financial performance element.
|
||||||||
50
|
2021 Proxy Statement
|
|
2021 Proxy Statement
|
|
51
|
Achievement Earned on Non-Financial Performance
|
||||||||
Following an assessment of results across all areas, the Committee determined it was appropriate to exceed the maximum funding for the benefit of all plan participants, given the difficult environment that our colleagues and executives were able to successfully navigate on behalf of all stakeholders. This exercise of discretion reflects a truly exceptional set of circumstances in an unprecedented year. Based on an assessment of the key achievements noted above, the Committee concluded an overall achievement of 367% of target was earned for the non-financial performance element. This achievement reflected the exercise of the Committee’s discretion to arrive at a 250% blended performance factor, while maintaining the governance around the maximum payout of the financial factor, and without moving completely away from the formulaic design that has served the Company and our shareholders well. The Committee expects to maintain the historical 2-times target maximum opportunity absent exceptional circumstances of the scale and duration of those experienced in 2020.
|
||||||||
Overall Achievement
|
||||||||
After weighing the earned factors for the financial and non-financial performance described above, the speed and scale of the Company’s response to the global health crisis, and the profound societal impact of the Company’s action from the outset of the virus, the Committee concluded that a calculated payout of 250% was earned.
|
||||||||
Performance Measure
|
Weight
|
Payout
|
Weighted Average
|
||||||||
Organic Revenue Growth
|
35 | % | 200 | % | 70 | % | |||||
Adjusted Operating Income as % of Revenue
|
15 | % | 200 | % | 30 | % | |||||
Adjusted Net Income
|
15 | % | 200 | % | 30 | % | |||||
Free Cash Flow
|
5 | % | 200 | % | 10 | % | |||||
Subtotal Financial
|
70 | % | 200 | % | 140 | % | |||||
Non-financial
|
30 | % | 367 | % | 110 | % | |||||
Total
|
100 | % |
|
250 | % | ||||||
Performance score: 250%
|
Named Executive Officer
|
2020 Target(1)
(% of Base Salary)
|
2020 Target
Award
|
2020 Approved
Award
|
2020 Payout
(% of Target)
|
||||||||||
Marc N. Casper
|
200 | % | $3,100,000 | $7,750,000 | 250 | % | ||||||||
Stephen Williamson
|
110 | % | $990,000 | $2,475,000 | 250 | % | ||||||||
Mark P. Stevenson
|
115 | % | $1,253,500 | $3,447,128 | 275 | % | ||||||||
Michel Lagarde
|
110 | % | $1,017,500 | $2,543,750 | 250 | % | ||||||||
Syed A. Jafry
|
85 | % | $565,760 | $1,414,400 | 250 | % |
52
|
2021 Proxy Statement
|
|
|
•Stock options incentivize long-term sustainable value creation
•Time-based restricted stock units promote executive retention while aligning executives’ interests with those of our shareholders
•Performance-based restricted stock units enable the Committee to reward executives for performance in areas of long-term strategic importance for the Company and our shareholders
|
2021 Proxy Statement
|
|
53
|
Grant Date Accounting Value of 2020 Award
|
|||||||||||||||||
Named Executive Officer
|
Target 2020 LTI
Award Value
|
Stock
Options
|
Time-Based
Restricted
Stock Units
|
Performance-Based
Restricted
Stock Units
|
Total 2020
LTI Award Value
|
||||||||||||
Marc N. Casper
|
$12,401,027 | $3,360,280 | $4,025,190 | $4,025,190 | $11,410,660 | ||||||||||||
Stephen Williamson
|
$4,000,637 | $1,065,680 | $1,308,187 | $1,308,187 | $3,682,054 | ||||||||||||
Mark P. Stevenson
|
$5,400,755 | $1,426,040 | $1,772,632 | $1,772,632 | $4,971,304 | ||||||||||||
Michel Lagarde
|
$4,200,826 | $1,125,740 | $1,370,113 | $1,370,113 | $3,865,966 | ||||||||||||
Syed A. Jafry
|
$2,600,518 | $705,320 | $843,742 | $843,742 | $2,392,804 |
Organic Revenue
Growth (50%)(1)
|
Adjusted Earnings
Per Share (50%)(1)
|
|||||||
Threshold (0% payout on each measure)
|
3.0 | % | $13.20 | |||||
Baseline (50% payout on each measure)
|
4.5 | % | $13.45 | |||||
Maximum (87.5% payout on each measure)
|
5.8 | % | $13.63 | |||||
Actual Results
|
25.4 | % | $19.55 | |||||
Payout Factor
|
175% |
Overall Achievement
|
||||||||
Actual organic revenue growth for the year was 25.4% and actual adjusted EPS for the year was $19.55, resulting in a payout of 175%. These achievements exceeded expectations, due to the Company’s extraordinary performance in supporting the societal response to the COVID-19 pandemic.
|
||||||||
54
|
2021 Proxy Statement
|
|
3-Year TSR Performance | Adjustment to 2024 Distribution | Impact on Total Earned Shares | ||||||
Top Quartile (75th percentile or greater)
|
+30% | +10% | ||||||
2nd Quartile (50th - 74th percentile)
|
+15% | +5% | ||||||
3rd Quartile (25th - 49th percentile)
|
-15% | -5% | ||||||
Bottom Quartile (24th percentile or below)
|
-30% | -10% |
In September 2017 the Compensation Committee approved a supplemental award of performance-based stock options for senior leaders, including our executive officers.
This award was designed to further enhance the alignment of interests between senior leaders and our shareholders, by requiring sustained share price growth through the use of options, and delivery of sustained superior stock price and dividend performance through the use of multiple relative TSR performance requirements. It also provides a means to assess and reward the leadership teams’ success at integrating recent acquisitions in a way that generates shareholder value.
The peer group for the program (the “2017 TSR Peer Group”) was constructed to focus on high-performing companies, meaning that to earn a payout, the Company needs to deliver exceptional, sustained performance against some of the higher performing companies in the S&P 500.
|
2017 Award Design Elements
•Performance-based stock options
•Exercise price equal to price on date of grant
•Cliff vesting in March 2021
•Seven-year term
•Performance measured over four overlapping five-year periods spanning 2013 - 2020
•Vesting contingent on relative TSR
•2017 TSR Peer Group of high performing companies with median TSR exceeding the S&P 500
•Full vesting requires performance in the top ten for all four periods
•For any vesting to occur the Company must rank in the top ten for at least two of the four periods
|
•3M Company
•Abbott Laboratories
•AbbVie Inc.
•Allergan plc
•Amgen Inc.
•Automated Data Processing, Inc.
•Becton, Dickinson and Company
•Biogen Inc.
•Bristol-Myers Squibb Company
•Cigna Corporation
|
•CSX Corporation
•Danaher Corporation
•Eaton Corporation plc
•Eli Lily and Company
•Emerson Electric Co.
•Gilead Sciences Inc.
•Henry Schein, Inc.
•Honeywell International Inc.
•Illinois Tool Works Inc.
•International Paper Company
|
•Medtronic, Inc.
•Merck & Co., Inc.
•Merck KGaA, Darmstadt, Germany
•NIKE, Inc.
•State Street Corporation
•Stryker Corporation
•Texas Instruments Incorporated
•The Boeing Company
•The PNC Financial Services Group
•Thermo Fisher Scientific Inc.
|
||||||
2021 Proxy Statement
|
|
55
|
Number of Periods Thermo Fisher Ranks in Top 10 Companies (i.e. top third)
|
Payout
|
||||
Four (All of the periods)
|
100 | % | |||
Three (75% of the periods)
|
75 | % | |||
Two (50% of the periods)
|
50 | % | |||
One (25% of the periods)
|
0 | % |
Performance Period
|
Thermo Fisher
TSR
|
75th
%ile
|
Threshold
TSR(1)
|
S&P 500
TSR(2)
|
Thermo Fisher
Rank
|
Performance
Requirement Met
|
||||||||||||||
1 Jan 2013 – 31 Dec 2017
|
25.1% | 24.8% | 22.8% | 15.7% | 6th | Yes | ||||||||||||||
1 Jan 2014 – 31 Dec 2018
|
15.8% | 15.7% | 14.4% | 8.5% | 8th | Yes | ||||||||||||||
1 Jan 2015 – 31 Dec 2019
|
21.1% | 16.8% | 16.0% | 11.5% | 3rd | Yes | ||||||||||||||
1 Jan 2016 – 31 Dec 2020
|
27.4% | 19.7% | 18.5% | 14.9% | 2nd | Yes |
Achievement | ||
Based on performance, 100% of the 2017 TSR award has been earned.
|
In light of the success of the 2017 TSR program in driving alignment with shareholder value creation and recognizing and retaining key executives, and in anticipation of the program’s conclusion in March 2021, in September 2020 the Compensation Committee approved a new performance-based stock option program for senior leaders, including our executive officers.
Like the 2017 award, the 2020 TSR award was designed to further enhance the alignment of interests between senior leaders and our shareholders, by requiring sustained share price growth through the use of options, and delivery of sustained superior stock price and dividend performance through the use of multiple relative TSR performance requirements. It also provides a means to assess and reward the leadership teams’ success at integrating recent acquisitions in a way that generates shareholder value.
The peer group for the program (the “2020 TSR Peer Group”) was constructed to focus on high-performing companies, meaning that to earn a payout, the Company needs to deliver exceptional, sustained performance against some of the higher performing companies in the S&P 500. Based on recent historical performance, in constructing the 2020 TSR Peer Group the Committee removed four lower-performing companies from the 2017 TSR Peer Group (Emerson Electric, International Paper, State Street and Henry Schein), and replaced them with four higher-performing companies (Boston Scientific, AstraZeneca, Cisco Systems. and Johnson & Johnson), in order to continue to require sustained relative superior stock price performance. The 2020 TSR Peer Group also included Pfizer, which was added to the Peer Group in 2019, and excluded Allergan, which was acquired by AbbVie in May 2020.
|
2020 TSR Award Design Elements
•Performance-based stock options
•Exercise price equal to price on date of grant
•Cliff vesting in March 2024
•Seven-year term
•Performance measured over three overlapping five-year periods spanning 2017 - 2023
•Vesting contingent on relative TSR
•2020 TSR Peer Group of high performing companies with median TSR exceeding the S&P 500
•Full vesting requires performance in the top ten for all three periods
•For any vesting to occur the Company must rank in the top ten for at least one of the three periods
|
56
|
2021 Proxy Statement
|
|
•3M Company
•Abbott Laboratories
•AbbVie Inc.
•Amgen Inc.
•AstraZeneca plc
•Automatic Data Processing, Inc.
•Becton, Dickinson and Company
•Biogen Inc.
•Boston Scientific Corp.
•Bristol-Myers Squibb Company
|
•Cigna Corporation
•Cisco Systems, Inc.
•CSX Corporation
•Danaher Corporation
•Eaton Corporation plc
•Eli Lily and Company
•Gilead Sciences Inc.
•Honeywell International Inc.
•Illinois Tool Works Inc.
•Johnson & Johnson
|
•Medtronic, Inc.
•Merck & Co., Inc.
•Merck KGaA, Darmstadt, Germany
•NIKE, Inc.
•Pfizer, Inc.
•Stryker Corporation
•Texas Instruments Incorporated
•The Boeing Company
•The PNC Financial Services Group
•Thermo Fisher Scientific Inc.
|
||||||
Number of Periods Thermo Fisher Ranks in Top 10 Companies (i.e. top third)
|
Payout
|
||||
Three (All of the periods) | 100 | % | |||
Two (67% of the periods) | 67 | % | |||
One (33% of the periods) | 33 | % |
Performance Period
|
Thermo Fisher
TSR
|
75th
%ile
|
Threshold
TSR(1)
|
S&P 500
TSR(2)
|
Thermo Fisher
Rank
|
Performance
Requirement Met
|
||||||||||||||
1 Jan 2017 – 31 Dec 2021 | Calculated in Q1 2022 | |||||||||||||||||||
1 Jan 2018 – 31 Dec 2022 | Calculated in Q1 2023 | |||||||||||||||||||
1 Jan 2019 – 31 Dec 2023 | Calculated in Q1 2024 |
Benefit
|
Key Features
|
||||
401(k) Plan
|
•Tax qualified retirement savings plan for U.S.-based colleagues
•Contributions matched 1:1 up to the first 6% of compensation deferred
•2020 cap on matching contributions of 6% of $285,000
•Contributions are fully vested on contribution
•Matching contributions for colleagues vest after two years of employment
|
||||
Deferred Compensation Plan
|
•Available to executive officers and certain other highly-compensated colleagues
•Participants can defer receipt of up to 50% of annual salary and/or bonus until either employment ceases or a future date prior to termination
•Contributions matched 1:1 on the first 6% of pay that is deferred over the 401(k) limit
|
2021 Proxy Statement
|
|
57
|
Benefit
|
Key Features
|
||||
Perquisites
|
•Supplemental long-term disability insurance
•Supplemental life insurance
•Executive health services
•Financial planning services (except for the CEO)
•A $3 million term life insurance policy for the CEO
•Limited non-business use of the corporate aircraft, up to an annual incremental cost to the Company of $150,000* (treated as taxable income in accordance with the IRS regulations) for the CEO.
•Security services, including home security systems, monitoring and additional personal security services for the CEO
•No tax gross-ups are provided on any perquisites
|
||||
Severance and change in control benefits
|
•NEOs are entitled to specified benefits on termination in certain circumstances
•‘Double trigger’ change in control agreements
•No tax gross-ups
|
58
|
2021 Proxy Statement
|
|
By: |
Dion J. Weisler (Chair)
Thomas J. Lynch Jim P. Manzi Scott M. Sperling |
2021 Proxy Statement
|
|
59
|
Name and
Principal Position |
Year |
Salary
($)(1)
|
Stock
Awards
($)(2)
|
Option
Awards
($)(3)
|
Non-Equity
Incentive Plan
Compensation
($)(4)
|
Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
($)(5)
|
All Other
Compensation
($)(6)
|
Total
($)
|
||||||||||||||||||
Marc N. Casper
Chairman, President and Chief Executive Officer
|
2020 | $1,550,000 | $8,050,380 | $8,232,516 | $7,750,000 | $— | $807,177 | $26,390,073 | ||||||||||||||||||
2019 | $1,538,631 | $8,788,054 | $3,969,338 | $4,154,303 | $— | $572,819 | $19,023,145 | |||||||||||||||||||
2018 | $1,482,740 | $8,005,840 | $3,893,298 | $4,670,630 | $— | $554,595 | $18,607,103 | |||||||||||||||||||
Stephen Williamson
Senior Vice President and Chief Financial Officer
|
2020 | $855,191 | $2,616,374 | $2,879,280 | $2,475,000 | $— | $230,561 | $9,056,406 | ||||||||||||||||||
2019 | $690,723 | $2,362,108 | $1,094,702 | $932,476 | $— | $116,136 | $5,196,145 | |||||||||||||||||||
2018 | $654,781 | $2,106,800 | $994,299 | $928,153 | $— | $112,127 | $4,796,160 | |||||||||||||||||||
Mark P. Stevenson
Executive Vice President and Chief Operating Officer
|
2020 | $1,081,038 | $3,545,264 | $3,499,892 | $3,447,128 | $634,804 | $320,180 | $12,528,306 | ||||||||||||||||||
2019 | $1,041,814 | $3,962,244 | $1,778,542 | $1,547,093 | $889,054 | $190,609 | $9,409,356 | |||||||||||||||||||
2018 | $1,005,025 | $3,665,832 | $1,764,115 | $1,741,205 | $— | $250,400 | $8,426,577 | |||||||||||||||||||
Michel Lagarde(7)
Executive Vice President
|
2020 | $908,197 | $2,740,226 | $3,199,592 | $2,543,750 | $— | $35,486 | $9,427,251 | ||||||||||||||||||
2019 | $782,329 | $2,423,534 | $1,297,706 | $1,375,000 | $— | $127,292 | $6,005,861 | |||||||||||||||||||
Syed A. Jafry(8)
Senior Vice President
|
2020 | $662,105 | $1,687,484 | $1,111,062 | $1,414,400 | $— | $37,774 | $4,912,825 | ||||||||||||||||||
2019 | $642,723 | $1,854,128 | $862,476 | $546,315 | $— | $67,292 | $3,972,934 |
60
|
2021 Proxy Statement
|
|
Name
|
Matching
401(k)
Contributions
|
Long-term
Disability
Insurance
Premiums
|
Matching
Deferred
Compensation
Plan
Contributions
|
Dividend
Equivalents
|
Financial
Planning
Services
|
Term Life
Insurance
Policy
|
Personal
Security
Services
|
Personal
Aircraft
Usage
|
Other
|
Total All Other
Compensation
|
||||||||||||||||||||||
Marc N. Casper | $17,100 | $2,513 | $535,535 | $58,953 | $— | $11,875 | $6,888 | $174,313 | $— | $807,177 | ||||||||||||||||||||||
Stephen Williamson
|
$17,100 | $2,843 | $178,996 | $16,166 | $15,000 | $— | $— | $— | $456 | $230,561 | ||||||||||||||||||||||
Mark P. Stevenson
|
$17,100 | $4,037 | $253,322 | $26,380 | $15,000 | $— | $— | $— | $4,341 | $320,180 | ||||||||||||||||||||||
Michel Lagarde
|
$17,100 | $3,001 | $— | $14,929 | $— | $— | $— | $— | $456 | $35,486 | ||||||||||||||||||||||
Syed A. Jafry
|
$17,100 | $3,720 | $— | $12,727 | $— | $— | $— | $— | $4,227 | $37,774 |
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards
|
Estimated Future Payouts Under
Equity Incentive Plan Awards
|
All Other
Stock
Awards:
Number
of Shares
of Stock or
Units(3)
|
All Other
Option
Awards:
Number of
Securities
Underlying
Options(4)
|
Exercise
or Base
Price of
Option
Awards
($/Sh)
|
Grant
Date Fair
Value of
Stock and
Option
Awards
($)(5)
|
|||||||||||||||||||||||||||||||||
Name
|
Grant Date
|
Threshold
($)
|
Target
($)(1)
|
Maximum
($)
|
Threshold(2)
|
Target(2)
|
Maximum(2)
|
|||||||||||||||||||||||||||||||
Marc N.
Casper
|
2/25/2020 | — | $3,100,000 | $6,200,000 | ||||||||||||||||||||||||||||||||||
2/25/2020 | — | 13,000 | 22,750 | $4,025,190 | ||||||||||||||||||||||||||||||||||
2/25/2020 | 13,000 | $4,025,190 | ||||||||||||||||||||||||||||||||||||
2/25/2020 | 54,550 | $309.63 | $3,360,280 | |||||||||||||||||||||||||||||||||||
9/9/2020 | — | 53,730 | 53,730 | $418.32 | $4,872,236 | |||||||||||||||||||||||||||||||||
Stephen
Williamson
|
2/25/2020 | — | $990,000 | $1,980,000 | ||||||||||||||||||||||||||||||||||
2/25/2020 | — | 4,225 | 7,394 | $1,308,187 | ||||||||||||||||||||||||||||||||||
2/25/2020 | 4,225 | $1,308,187 | ||||||||||||||||||||||||||||||||||||
2/25/2020 | 17,300 | $309.63 | $1,065,680 | |||||||||||||||||||||||||||||||||||
9/9/2020 | — | 20,000 | 20,000 | $418.32 | $1,813,600 | |||||||||||||||||||||||||||||||||
Mark P.
Stevenson
|
2/25/2020 | — | $1,253,500 | $2,507,000 | ||||||||||||||||||||||||||||||||||
2/25/2020 | — | 5,725 | 10,019 | $1,772,632 | ||||||||||||||||||||||||||||||||||
2/25/2020 | 5,725 | $1,772,632 | ||||||||||||||||||||||||||||||||||||
2/25/2020 | 23,150 | $309.63 | $1,426,040 | |||||||||||||||||||||||||||||||||||
9/9/2020 | — | 22,870 | 22,870 | $418.32 | $2,073,852 | |||||||||||||||||||||||||||||||||
Michel
Lagarde
|
2/25/2020 | — | $1,017,500 | $2,035,000 | ||||||||||||||||||||||||||||||||||
2/25/2020 | — | 4,425 | 7,744 | $1,370,113 | ||||||||||||||||||||||||||||||||||
2/25/2020 | 4,425 | $1,370,113 | ||||||||||||||||||||||||||||||||||||
2/25/2020 | 18,275 | $309.63 | $1,125,740 | |||||||||||||||||||||||||||||||||||
9/9/2020 | — | 22,870 | 22,870 | $418.32 | $2,073,852 |
2021 Proxy Statement
|
|
61
|
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards
|
Estimated Future Payouts Under
Equity Incentive Plan Awards
|
All Other
Stock
Awards:
Number
of Shares
of Stock or
Units(3)
|
All Other
Option
Awards:
Number of
Securities
Underlying
Options(4)
|
Exercise
or Base
Price of
Option
Awards
($/Sh)
|
Grant
Date Fair
Value of
Stock and
Option
Awards
($)(5)
|
|||||||||||||||||||||||||||||||||
Name
|
Grant Date
|
Threshold
($)
|
Target
($)(1)
|
Maximum
($)
|
Threshold(2)
|
Target(2)
|
Maximum(2)
|
|||||||||||||||||||||||||||||||
Syed A.
Jafry
|
2/25/2020 | — | $565,760 | $1,131,520 | ||||||||||||||||||||||||||||||||||
2/25/2020 | — | 2,725 | 4,769 | $843,742 | ||||||||||||||||||||||||||||||||||
2/25/2020 | 2,725 | $843,742 | ||||||||||||||||||||||||||||||||||||
2/25/2020 | 11,450 | $309.63 | $705,320 | |||||||||||||||||||||||||||||||||||
9/9/2020 | 4,580 | $418.32 | $405,742 |
Option Awards
|
Stock Awards
|
||||||||||||||||||||||||||||||||||||||||||||||
Name
|
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
|
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable(1)
|
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
|
Option
Exercise
Price ($)
|
Option
Expiration
Date
|
Number
of Shares
or Units of
Stock That
Have Not
Vested
(#)(1)
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested ($)
@ $465.78*
|
Equity
Incentive
Plan Awards:
Number of
Unearned
Shares,
Units or
Other
Rights That
Have Not
Vested (#)
|
Equity
Incentive
Plan Awards:
Market or
Payout Value
of Unearned
Shares, Units
or Other
Rights That
Have Not
Vested ($)
|
||||||||||||||||||||||||||||||||||||||
Marc N.
Casper
|
128,100 | — | — | $129.77 | 2/24/2023 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
94,800 | 31,600 |
(2)
|
— | $157.68 | 2/28/2024 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 116,300 |
(3)
|
— | $190.59 |
9/7/2024
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
42,925 | 42,925 |
(4)
|
— | $210.68 |
2/27/2025
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
17,812 | 53,438 |
(5)
|
— | $253.99 |
2/26/2026
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 54,550 |
(6)
|
— | $309.63 | 2/25/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | 53,730 |
(7)
|
$418.32 | 9/9/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 5,700 |
(8)
|
$2,654,946 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 11,084 |
(9)
|
$5,162,706 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 10,380 |
(10)
|
$4,834,796 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 18,800 |
(11)
|
$8,756,664 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 11,050 |
(12)
|
$5,146,869 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | 22,750 |
(13)
|
$10,596,495 |
(14)
|
62
|
2021 Proxy Statement
|
|
Option Awards
|
Stock Awards
|
||||||||||||||||||||||||||||||||||||||||||||||
Name
|
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
|
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable(1)
|
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
|
Option
Exercise
Price ($)
|
Option
Expiration
Date
|
Number
of Shares
or Units of
Stock That
Have Not
Vested
(#)(1)
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested ($)
@ $465.78*
|
Equity
Incentive
Plan Awards:
Number of
Unearned
Shares,
Units or
Other
Rights That
Have Not
Vested (#)
|
Equity
Incentive
Plan Awards:
Market or
Payout Value
of Unearned
Shares, Units
or Other
Rights That
Have Not
Vested ($)
|
||||||||||||||||||||||||||||||||||||||
Stephen
Williamson
|
22,550 | — | — | $129.77 | 2/24/2023 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
20,475 | 6,825 |
(2)
|
— | $157.68 |
2/28/2024
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 29,100 |
(3)
|
— | $190.59 |
9/7/2024
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
10,962 | 10,963 |
(4)
|
— | $210.68 |
2/27/2025
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
4,912 | 14,738 |
(5)
|
— | $253.99 |
2/26/2026
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 17,300 |
(6)
|
— | $309.63 | 2/25/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | 20,000 |
(7)
|
$418.32 | 9/9/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 1,500 |
(8)
|
$698,670 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,917 |
(9)
|
$1,358,680 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,791 |
(10)
|
$1,299,992 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 5,053 |
(11)
|
$2,353,586 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 3,592 |
(12)
|
$1,673,082 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | 7,394 |
(13)
|
$3,443,977 |
(14)
|
|||||||||||||||||||||||||||||||||||||
Mark P.
Stevenson
|
37,125 | 12,375 |
(2)
|
— | $157.68 | 2/28/2024 | — | — | — | — | |||||||||||||||||||||||||||||||||||||
— |
58,200
|
(3)
|
— | $190.59 |
9/7/2024
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
54,525 | 18,175 |
(15)
|
— | $190.59 |
9/7/2024
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
19,450 | 19,450 |
(4)
|
— | $210.68 |
2/27/2025
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
7,981 | 23,944 |
(5)
|
— | $253.99 |
2/26/2026
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 23,150 |
(6)
|
— | $309.63 | 2/25/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | 22,870 |
(7)
|
$418.32 | 9/9/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,610 |
(8)
|
$1,215,686 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 5,075 |
(9)
|
$2,363,834 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 4,680 |
(10)
|
$2,179,850 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 8,476 |
(11)
|
$3,947,951 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 4,867 |
(12)
|
$2,266,951 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | 10,019 |
(13)
|
$4,666,650 |
(14)
|
|||||||||||||||||||||||||||||||||||||
Michel
Lagarde
|
142,637 | — | — | $105.17 |
7/20/2026
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
22,046 | — | — | $132.66 |
3/23/2027
|
— | — | — | — | |||||||||||||||||||||||||||||||||||||||
— | 29,100 |
(3)
|
— | $190.59 |
9/7/2024
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
27,375 | 9,125 |
(15)
|
— | $190.59 |
9/7/2024
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
3,950 | 3,950 |
(4)
|
— | $210.68 |
2/27/2025
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
4,637 | 13,913 |
(5)
|
— | $253.99 |
2/26/2026
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
1,125 | 3,375 |
(16)
|
— | $294.02 |
9/5/2026
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 18,275 |
(6)
|
— | $309.63 | 2/25/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | 22,870 |
(7)
|
$418.32 | 9/9/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,130 |
(17)
|
$992,111 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 660 |
(8)
|
$307,415 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 1,284 |
(9)
|
$598,062 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,551 |
(10)
|
$1,188,205 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 4,620 |
(11)
|
$2,151,904 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 765 |
(18)
|
$356,322 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 3,762 |
(12)
|
$1,752,264 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | 7,744 |
(13)
|
$3,607,000 |
(14)
|
2021 Proxy Statement
|
|
63
|
Option Awards
|
Stock Awards
|
||||||||||||||||||||||||||||||||||||||||||||||
Name
|
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
|
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable(1)
|
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
|
Option
Exercise
Price ($)
|
Option
Expiration
Date
|
Number
of Shares
or Units of
Stock That
Have Not
Vested
(#)(1)
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested ($)
@ $465.78*
|
Equity
Incentive
Plan Awards:
Number of
Unearned
Shares,
Units or
Other
Rights That
Have Not
Vested (#)
|
Equity
Incentive
Plan Awards:
Market or
Payout Value
of Unearned
Shares, Units
or Other
Rights That
Have Not
Vested ($)
|
||||||||||||||||||||||||||||||||||||||
Syed A.
Jafry
|
— | 6,200 |
(2)
|
— | $157.68 | 2/28/2024 | — | — | — | — | |||||||||||||||||||||||||||||||||||||
— |
29,100
|
(3)
|
— | $190.59 |
9/7/2024
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 9,150 |
(4)
|
— | $210.68 |
2/27/2025
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 12,300 |
(5)
|
— | $253.99 |
2/26/2026
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 11,450 |
(6)
|
— | $309.63 | 2/25/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | 4,580 |
(19)
|
— | $418.32 | 9/9/2027 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 1,320 |
(8)
|
$614,830 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,567 |
(9)
|
$1,195,657 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,191 |
(10)
|
$1,020,524 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 3,968 |
(11)
|
$1,848,215 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2,317 |
(12)
|
$1,079,212 | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | 4,769 |
(13)
|
$2,221,305 |
(14)
|
64
|
2021 Proxy Statement
|
|
Option Awards
|
Stock Awards
|
||||||||||||||||
Name
|
Number of Shares
Acquired on
Exercise (#)
|
Value
Realized On
Exercise ($)(1)
|
Number of Shares
Acquired on
Vesting (#)
|
Value
Realized On
Vesting ($)(2)
|
|||||||||||||
Marc N. Casper
|
251,500 | $61,920,979 | 53,737 | $18,736,570 | |||||||||||||
Stephen Williamson
|
28,500 | $7,229,437 | 13,379 | $4,677,092 | |||||||||||||
Mark P. Stevenson
|
191,650 | $52,070,590 | 23,051 | $8,040,318 | |||||||||||||
Michel Lagarde
|
— | $— | 11,068 | $3,614,010 | |||||||||||||
Syed A. Jafry
|
20,513 | $4,797,193 | 11,349 | $3,957,484 |
Name
|
Plan Name
|
Number of Years
Credited Service
(#)
|
Present Value of
Accumulated Benefit ($) |
Payments During
Last Fiscal Year
($)
|
|||||||||||||
Marc N. Casper
|
— | — | — | — | |||||||||||||
Stephen Williamson
|
— | — | — | — | |||||||||||||
Mark P. Stevenson
|
Applera Corporation Supplemental Executive Retirement Plan | 5 | $4,307,441 |
(1)
|
— | ||||||||||||
Michel Lagarde
|
— | — | — | — | |||||||||||||
Syed A. Jafry
|
— | — | — | — |
2021 Proxy Statement
|
|
65
|
Name
|
Executive
Contributions
in Last FY ($)(1)
|
Company
Contributions
in Last FY ($)(2)
|
Aggregate
Earnings in
Last FY ($)
|
Aggregate
Withdrawals/
Distributions
($)
|
Aggregate
Balance at
Last FYE ($)
|
|||||||||||||||
Marc N. Casper
|
$319,793 | $319,793 | $1,588,878 | ($298,924) | $7,814,752 |
(3)
|
||||||||||||||
Stephen Williamson
|
$86,445 | $86,445 | $173,634 | $— | $1,514,930 |
(4)
|
||||||||||||||
Mark P. Stevenson
|
$139,320 | $139,320 | $3,039,457 | $— | $12,585,079 |
(5)
|
||||||||||||||
Michel Lagarde
|
$60,000 | $60,000 | $3,817 | $— | $185,105 |
(6)
|
||||||||||||||
Syed A. Jafry
|
$— | $— | $6,538 | $— | $269,083 |
66
|
2021 Proxy Statement
|
|
Name of Fund
|
Rate of
Return(1)
|
Name of Fund
|
Rate of
Return(1)
|
Name of Fund
|
Rate of
Return(1)
|
||||||||||||||||||
T. Rowe Price Retirement 2005 Fund | 11.58 | % | T. Rowe Price Retirement 2045 Fund | 18.97 | % | Jennison Institutional US Small Cap Equity | 38.60 | % | |||||||||||||||
T. Rowe Price Retirement 2010 Fund | 12.24 | % | T. Rowe Price Retirement 2050 Fund | 18.90 | % | State Street S&P 500 Index Fund | 18.36 | % | |||||||||||||||
T. Rowe Price Retirement 2015 Fund | 13.03 | % | T. Rowe Price Retirement 2055 Fund | 18.86 | % | State Street Russell Sm/Mid Cap Index | 32.62 | % | |||||||||||||||
T. Rowe Price Retirement 2020 Fund | 13.55 | % | T. Rowe Price Retirement 2060 Fund | 18.80 | % | FIAM Core Plus Bond Fund | 8.83 | % | |||||||||||||||
T. Rowe Price Retirement 2025 Fund | 14.93 | % | American Funds Euro Pacific Growth Fund | 25.27 | % | Fidelity Inflation-Protected Bond Index | 10.90 | % | |||||||||||||||
T. Rowe Price Retirement 2030 Fund | 16.18 | % | Dodge & Cox Stock Fund | 7.16 | % | State Street US Bond Index | 7.64 | % | |||||||||||||||
T. Rowe Price Retirement 2035 Fund | 17.36 | % | Fidelity Total International Index | 11.07 | % | Fixed Interest Account | 2.49 | % | |||||||||||||||
T. Rowe Price Retirement 2040 Fund | 18.47 | % | T. Rowe Price Growth Stock Trust | 36.34 | % |
2021 Proxy Statement
|
|
67
|
68
|
2021 Proxy Statement
|
|
Long-term Incentive Programs(1)
|
|||||||||||||||||||||||
Name
|
Termination Scenario
|
Total
|
Severance
|
Stock
Options
|
Performance
Stock Option
|
Restricted
Stock Units
|
|||||||||||||||||
Marc N.
Casper
|
Voluntary Resignation
Without Good Reason
|
$3,100,000 | $3,100,000 |
(2)
|
$— | $— | $— | ||||||||||||||||
Involuntary For Cause
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Involuntary Without Cause or
by Executive for Good Reason
|
$86,310,424 | $13,533,702 |
(3)
|
$21,112,949 | $32,004,597 | $19,659,176 | |||||||||||||||||
Involuntary Without Cause or
by Executive for Good Reason
(with CIC)
|
$127,033,242 | $14,804,399 |
(4)
|
$40,521,744 | $34,554,623 | $37,152,476 | |||||||||||||||||
CIC Without Termination
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Disability
|
$97,806,908 | $4,154,303 |
(5)
|
$40,521,744 | $34,554,623 | $18,576,238 | |||||||||||||||||
Death
|
$97,806,908 | $4,154,303 |
(5)
|
$40,521,744 | $34,554,623 | $18,576,238 |
2021 Proxy Statement
|
|
69
|
Long-term Incentive Programs(1)
|
|||||||||||||||||||||||
Name
|
Termination Scenario
|
Total
|
Severance
|
Stock
Options
|
Performance
Stock Option
|
Restricted
Stock Units
|
|||||||||||||||||
Stephen
Williamson
|
Voluntary Resignation
Without Good Reason
|
$990,000 | $990,000 |
(2)
|
$— | $— | $— | ||||||||||||||||
Involuntary For Cause
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Involuntary Without Cause
|
$3,872,209 | $3,872,209 |
(3)
|
$— | $— | $— | |||||||||||||||||
Involuntary Without Cause or
by Executive for Good Reason
(with CIC)
|
$36,278,978 | $5,771,561 |
(4)
|
$10,722,200 | $8,957,229 | $10,827,988 | |||||||||||||||||
CIC Without Termination
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Disability
|
$31,497,417 | $990,000 |
(2)
|
$10,722,200 | $8,957,229 | $10,827,988 | |||||||||||||||||
Death
|
$31,497,417 | $990,000 |
(2)
|
$10,722,200 | $8,957,229 | $10,827,988 | |||||||||||||||||
Mark P.
Stevenson
|
Voluntary Resignation
Without Good Reason
|
$1,253,500 | $1,253,500 |
(2)
|
$— | $— | $— | ||||||||||||||||
Involuntary For Cause
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Involuntary Without Cause
|
$4,823,038 | $4,823,038 |
(3)
|
$— | $— | $— | |||||||||||||||||
Involuntary Without Cause or
by Executive for Good Reason
(with CIC)
|
$63,382,672 | $7,178,299 |
(4)
|
$22,461,983 | $17,101,468 | $16,640,922 | |||||||||||||||||
CIC Without Termination
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Disability
|
$57,457,873 | $1,253,500 |
(2)
|
$22,461,983 | $17,101,468 | $16,640,922 | |||||||||||||||||
Death
|
$57,457,873 | $1,253,500 |
(2)
|
$22,461,983 | $17,101,468 | $16,640,922 | |||||||||||||||||
Michel Lagarde
|
Voluntary Resignation
Without Good Reason
|
$1,017,500 | $1,017,500 |
(2)
|
$— | $— | $— | ||||||||||||||||
Involuntary For Cause
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Involuntary Without Cause
|
$3,978,459 | $3,978,459 |
(3)
|
$— | $— | $— | |||||||||||||||||
Involuntary Without Cause or
by Executive for Good Reason
(with CIC)
|
$35,875,751 | $5,930,311 |
(4)
|
$9,898,719 | $9,093,439 | $10,953,282 | |||||||||||||||||
CIC Without Termination
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Disability
|
$30,962,940 | $1,017,500 |
(2)
|
$9,898,719 | $9,093,439 | $10,953,282 | |||||||||||||||||
Death
|
$30,962,940 | $1,017,500 |
(2)
|
$9,898,719 | $9,093,439 | $10,953,282 | |||||||||||||||||
Syed A.
Jafry
|
Voluntary Resignation
Without Good Reason
|
$565,760 | $565,760 |
(2)
|
$— | $— | $— | ||||||||||||||||
Involuntary For Cause
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Involuntary Without Cause
|
$2,466,910 | $2,466,910 |
(3)
|
$— | $— | $— | |||||||||||||||||
Involuntary Without Cause or
by Executive for Good Reason
(with CIC)
|
$28,552,430 | $3,709,972 |
(4)
|
$8,854,686 | $8,008,029 | $7,979,743 | |||||||||||||||||
CIC Without Termination
|
$— | $— | $— | $— | $— | ||||||||||||||||||
Disability
|
$25,408,218 | $565,760 |
(2)
|
$8,854,686 | $8,008,029 | $7,979,743 | |||||||||||||||||
Death
|
$25,408,218 | $565,760 |
(2)
|
$8,854,686 | $8,008,029 | $7,979,743 |
70
|
2021 Proxy Statement
|
|
2021 Proxy Statement
|
|
71
|
|
|||||||||||
Proposal 3
|
|||||||||||
Ratification of the selection of the independent auditors
|
|||||||||||
Your board of directors recommends a vote FOR the ratification of the selection of PricewaterhouseCoopers LLP as the Company’s independent auditors for the fiscal year ending December 31, 2021.
|
|||||||||||
2020 | 2019 | |||||||||||||
Audit Fees
|
$23,832,476 |
(1)
|
$23,617,081 | |||||||||||
Audit-Related Fees
|
966,605 | 2,967,778 | ||||||||||||
Tax Fees
|
12,323,792 |
(2)
|
13,365,705 |
(2)
|
||||||||||
All Other Fees
|
6,300 | 72,876 | ||||||||||||
Total Fees
|
$37,129,173 | $40,023,440 |
72
|
2021 Proxy Statement
|
|
2021 Proxy Statement
|
|
73
|
By: |
Nelson J. Chai (Chair)
Debora L. Spar Dion J. Weisler |
74
|
2021 Proxy Statement
|
|
2021 Proxy Statement
|
|
75
|
76
|
2021 Proxy Statement
|
|
Amount and Nature of Beneficial Ownership
|
||||||||||||||||||||
Name and Address of Beneficial Owner(1)
|
Shares
Owned
Directly or
Indirectly
|
Common Stock
Subject to
Options
Exercisable
on or Prior to
April 29, 2021
|
Restricted
Stock Units
which vest on
or prior to
April 29, 2021
|
Total
|
Percent of
Shares
Beneficially
Owned
|
|||||||||||||||
Vanguard Group Inc.
|
30,997,381 | — | — | 30,997,381 |
(2)
|
7.87 | % | |||||||||||||
BlackRock, Inc.
|
29,504,221 | — | — | 29,504,221 |
(3)
|
7.49 | % | |||||||||||||
Marc N. Casper
|
259,318 | 484,449 | — | 743,767 |
(4)
|
*
|
||||||||||||||
Nelson J. Chai
|
12,138 | — | — | 12,138 |
*
|
|||||||||||||||
C. Martin Harris
|
6,358 | — | — | 6,358 |
*
|
|||||||||||||||
Tyler Jacks
|
6,288 | — | — | 6,288 |
*
|
|||||||||||||||
Syed A. Jafry | 10,573 | 59,612 | 5,495 | 75,680 |
(5)
|
* | ||||||||||||||
R. Alexandra Keith | 29 | — | — | 29 |
(6)
|
* | ||||||||||||||
Michel Lagarde | 3,758 | 242,051 | 2,355 | 248,164 | * | |||||||||||||||
Judy C. Lewent
|
18,927 | — | — | 18,927 |
(7)
|
*
|
||||||||||||||
Thomas J. Lynch
|
14,647 | — | — | 14,647 |
*
|
|||||||||||||||
Jim P. Manzi
|
17,314 | — | — | 17,314 |
*
|
|||||||||||||||
James C. Mullen
|
718 | — | — | 718 |
*
|
|||||||||||||||
Lars R. Sørensen
|
7,995 | — | — | 7,995 |
*
|
|||||||||||||||
Debora L. Spar
|
— | — | — | — |
*
|
|||||||||||||||
Scott M. Sperling
|
90,702 | — | — | 90,702 |
(8)
|
*
|
||||||||||||||
Mark P. Stevenson
|
103,723 | 257,012 | 11,528 | 372,263 |
(9)
|
*
|
||||||||||||||
Dion J. Weisler
|
4,330 | — | — | 4,330 |
(10)
|
*
|
||||||||||||||
Stephen Williamson
|
24,023 | 109,543 | — | 133,566 |
*
|
|||||||||||||||
All current directors and executive officers as a group (18 individuals) | 593,066 | 1,129,883 | 14,444 | 1,737,393 |
(11)
|
*
|
||||||||||||||
2021 Proxy Statement
|
|
77
|
Plan Category
|
(a)
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights
|
(b)
Weighted average
exercise price of
outstanding options,
warrants and rights
|
(c)
Number of securities remaining
available for future issuance
under equity compensation
plans (excluding securities
reflected in column (a))(1)
|
||||||||
Equity Compensation Plans Approved By Security Holders(2)(3)(4)(5)
|
6,668,585 | $224.65 | 12,644,810 | ||||||||
Equity Compensation Plans Not Approved By Security Holders(6)
|
176,186 | $109.49 | 2,840,942 | ||||||||
Total
|
6,844,771 | $221.22 | 15,485,752 |
78
|
2021 Proxy Statement
|
|
2021 Proxy Statement
|
|
79
|
80
|
2021 Proxy Statement
|
|
2021 Proxy Statement
|
|
81
|
Voting Item
|
Board Recommendation
|
Voting
Standard
|
Treatment of
Abstentions & Broker
Non-Votes
|
|||||||||||
Election of directors
|
For all nominees
|
Majority of Votes Cast
|
Not counted as votes cast and therefore no effect
|
|||||||||||
Say on Pay
|
For
|
|||||||||||||
Auditor ratification | For | |||||||||||||
Shareholder proposal regarding special meeting right | Against |
82
|
2021 Proxy Statement
|
|
2021 Proxy Statement
|
|
83
|
84
|
2021 Proxy Statement
|
|
(Dollars in millions except per share amounts)
|
2020 | 2019 | ||||||||||||
GAAP Results (a)
|
||||||||||||||
Revenues
|
$32,218 | $25,542 | ||||||||||||
Operating Income
|
7,794 | 4,594 | ||||||||||||
Net Income
|
6,375 | 3,696 | ||||||||||||
Diluted Earnings per Share
|
$15.96 | $9.17 | ||||||||||||
Organic Revenue Growth
|
||||||||||||||
Revenue Growth
|
26% | 5% | ||||||||||||
Acquisitions, net of Divestitures
|
0% | 1% | ||||||||||||
Currency Translation
|
1% | -2% | ||||||||||||
Organic Revenue Growth
|
25% | 6% | ||||||||||||
Reconciliation of Adjusted Operating Income and Adjusted Operating Margin
|
||||||||||||||
GAAP Operating Income(a)
|
$7,794 | 24.2% | $4,594 | 18.0% | ||||||||||
Cost of Revenues Charges(c)
|
6 | 0.0% | 17 | 0.1% | ||||||||||
Selling, General and Administrative (Credits) Charges, Net(d)
|
(10) | 0.0% | 62 | 0.2% | ||||||||||
Restructuring and Other Costs (Income), Net(e)
|
99 | 0.3% | (413) | -1.6% | ||||||||||
Amortization of Acquisition-related Intangible Assets
|
1,667 | 5.2% | 1,713 | 6.7% | ||||||||||
Adjusted Operating Income(b)
|
$9,556 | 29.7% | $5,973 | 23.4% | ||||||||||
2021 Proxy Statement
|
|
85
|
(Dollars in millions except per share amounts)
|
2020 | 2019 | ||||||||||||
Reconciliation of Adjusted Net Income
|
||||||||||||||
GAAP Net Income(a)
|
$6,375 | $3,696 | ||||||||||||
Cost of Revenues Charges(c)
|
6 | 17 | ||||||||||||
Selling, General and Administrative (Credits) Charges(d)
|
(10) | 62 | ||||||||||||
Restructuring and Other Costs (Income), Net(e)
|
99 | (413) | ||||||||||||
Amortization of Acquisition-related Intangible Assets
|
1,667 | 1,713 | ||||||||||||
Other Expense, Net(f)
|
121 | 144 | ||||||||||||
Income Tax Benefit(g)
|
(448) | (244) | ||||||||||||
Adjusted Net Income(b)
|
$7,810 | $4,975 | ||||||||||||
Reconciliation of Adjusted Earnings per Share
|
||||||||||||||
GAAP Diluted EPS(a)
|
$15.96 | $9.17 | ||||||||||||
Cost of Revenues Charges, Net of Tax(c)
|
0.01 | 0.03 | ||||||||||||
Selling, General and Administrative (Credits) Charges, Net of Tax(d)
|
(0.02) | 0.12 | ||||||||||||
Restructuring and Other Costs (Income), Net of Tax(e)
|
0.19 | (0.56) | ||||||||||||
Amortization of Acquisition-related Intangible Assets, Net of Tax
|
3.24 | 3.30 | ||||||||||||
Other Expense, Net of Tax(f)
|
0.23 | 0.27 | ||||||||||||
Income Tax (Benefit) Provision(g)
|
(0.06) | 0.02 | ||||||||||||
Adjusted EPS(b)
|
$19.55 | $12.35 | ||||||||||||
Reconciliation of Free Cash Flow
|
||||||||||||||
GAAP Net Cash Provided by Operating Activities(a)
|
$8,289 | $4,973 | ||||||||||||
Purchases of Property, Plant and Equipment
|
(1,474) | (926) | ||||||||||||
Proceeds from Sale of Property, Plant and Equipment
|
8 | 36 | ||||||||||||
Free Cash Flow
|
$6,823 | $4,083 |
86
|
2021 Proxy Statement
|
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