CORPORATE GOVERNANCE
Corporate Governance Documents
The following corporate governance documents are available at: https://www.nordson.com/en/About-Us/Corporate-Governance
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Conflict Minerals Policy |
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Related Persons Transaction Policy |
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Share Ownership Guidelines |
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Code of Ethics and Business Conduct |
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Suppliers Code of Conduct |
The Governance Guidelines contain general principles regarding the functions of Nordson’s Board and Board committees and the Director Recruitment and Performance Guidelines. The Annual Report to Shareholders, which includes the Annual Report on Form 10-K for the fiscal year ended October 31, 2024 (the “2024 Annual Report”) and this Proxy Statement, are available at: https://investors.nordson.com/financials/annual-reports/default.aspx. Upon request, copies of the Annual Report to Shareholders will be mailed to you (at no charge) by contacting Nordson Corporation, Attn: Corporate Communications, 28601 Clemens Road, Westlake, Ohio 44145. The information in, or that can be accessed through, our internet site is not part of this Proxy Statement, and all references in this document to our internet site are for informational or reference purposes only.
Code of Ethics and Business Conduct
We have a Code of Ethics and Business Conduct (the “Code”) that applies to all Nordson directors, officers, employees, and its subsidiaries, wherever located. Our Code contains the general guidelines and principles for conducting Nordson’s business consistent with the highest standards of business ethics. Our Code embodies our five guiding values, which form the foundation of our Company: Integrity, Excellence, Passion for Our Customers, Energy, and Respect for People. Our employees are expected to report all suspected violations of Company policies and the law, including incidents of harassment or discrimination, directly to their managers, human resources, or the Chief Compliance Officer. We also provide confidential, anonymous reporting through our third-party helpline, which is available 24 hours per day, seven days per week via a toll-free telephone line or the internet. We provide interpreters who speak the reporter’s preferred language. We will take appropriate steps to investigate all reports we receive through these channels and will take appropriate action. Under no circumstances will our employees be subject to any disciplinary or retaliatory action for reporting, in good faith, a possible violation of our Code or applicable law or for cooperating in any investigation of a possible violation.
Shareholder Engagement, Environmental and Social Governance, and Sustainability
We recognize that managing our economic, environmental, social, and governance enhances our ability to deliver results over the long term for shareholders, employees, our communities, and other stakeholders. Our Board oversees our corporate responsibility efforts, while cross functional teams of senior management drive these and our sustainability efforts throughout the Company. Further information about our Corporate Responsibility and Sustainability initiatives can be found on our website at https://www.nordson.com/en/about-us/corporate-responsibility.
Sharing the Nordson story and being accessible to our shareholders is a priority for Nordson. In 2024, we engaged over 200 institutional investors and analysts through phone calls, virtual and in-person conferences, and virtual and in-person road trips hosted by sell-side research analysts. Key themes from these conversations included the diversity of our end markets and geographies, growth drivers of our business, the ongoing deployment of the NBS Next growth framework and capital deployment, including our acquisition strategy. Additionally, we hosted an Investor Day in New York City on October 3, 2024. Attendees heard directly from our executive leadership team on our growth strategy and long-term financial targets. A recording of the live-streamed event is available on www.nordson.com/investors.
In November 2024, Nordson published its latest Environmental, Social and Governance (“ESG”) report. The report reflects an intentional, systemic approach to organizing and communicating our commitments, accomplishments and aspirations through an ESG lens. To view the 2024 and previous reports, visit https://www.nordson.com/en/about-us/corporate-responsibility
22 | Nordson Corporation – 2025 Proxy Statement
Board Leadership Structure
Our Governance Guidelines require us to have either an independent Chair of the Board or a presiding independent director if the Chair is not an independent director. The Governance Guidelines set forth the responsibilities of the Chair of the Board and the Presiding Director when the Chair of the Board is not an independent director.
At present, we have an independent Chair of the Board separate from the Chief Executive Officer position.
We separate the Chair of the Board and Chief Executive Officer positions to enhance independent oversight of management and to allow our Chief Executive Officer to focus his time and energy on setting the strategic direction for the Company, overseeing daily operations, engaging with external constituents, developing and mentoring our future leaders, and promoting employee engagement at all levels of the organization. Our independent Chair of the Board leads the Board in the performance of its duties by establishing agendas and ensuring appropriate meeting content (in collaboration with our Chief Executive Officer), presiding during regularly held executive sessions with our independent directors, actively engaging with all independent directors and our Chief Executive Officer between Board meetings, and providing overall guidance to our Chief Executive Officer as to the Board’s views and perspectives, particularly on the strategic direction of the Company. In March 2024, Mr. Richey was elected independent Chair of the Board, succeeding Mr. Merriman, who had served in that capacity since February 2018.
Meetings of the Board of Directors
The Board held seven meetings and our committees held 17 meetings during fiscal year 2024. Nordson’s Governance Guidelines require attendance and active participation by directors at Board and committee meetings. In fiscal year 2024, each director attended at least 75% of the aggregate of (i) the total number of meetings of the Board held during the period for which he or she served as a director and (ii) the total number of meetings held by all committees on which he or she served (during the period that he or she served). Directors are encouraged to attend the Annual Meeting. All of Nordson’s directors serving at the time attended the 2024 Annual Meeting of Shareholders held on March 5, 2024.
Executive Sessions of Independent Directors
Pursuant to our Governance Guidelines, independent directors meet in regularly scheduled executive sessions without management. The Chair of the Board (or, when our Chair is not an independent director, the Presiding Director) chairs all regularly scheduled executive sessions of the Board, and also has authority to convene meetings of the independent directors at any time with appropriate notice.
Risk Oversight
The Board plays an active role, both as a whole and through focused reviews at the committee level, in the oversight and management of the Company’s risks. Management is responsible for the Company’s day-to-day risk management activities and oversees areas of material risk, which include operational, financial, legal and regulatory, human capital, information technology, cybersecurity and physical security, ESG and strategic and reputational risks. The Company has established an enterprise risk framework for identifying, aggregating, and evaluating risk across the enterprise. The risk framework is integrated with the Company’s annual planning, audit scoping, and control evaluation management by its internal auditor.
The involvement of the Board in regularly assessing our business strategy, through dedicated annual reviews and periodic tailored sessions, is a key part of its oversight of risk management, its assessment of management’s appetite for risk, and its determination of what constitutes an appropriate level of risk for Nordson. The Board receives updates from management and guidance from outside advisors regarding this oversight responsibility.
In addition, the Board receives regular updates from management regarding matters critical to the business, which may include the safety of our workforce, supply chain interruptions, material availability, labor shortages and potential operational or financial implications of all these issues.
26 | Nordson Corporation – 2025 Proxy Statement
Insider Trading, Anti-Pledging/Anti-Hedging Policy
We maintain an insider trading policy applicable to our directors, executive officers, and other employees, and have implemented processes for the Company, that we believe are reasonably designed to promote compliance with insider trading laws, rules and regulations, including Nasdaq rules, in connection with the purchase, sale, and or other dispositions of Company securities or the securities of other companies with which we do business.
We prohibit directors and executive officers from pledging Nordson common shares as collateral. Other types of transactions that are prohibited include trading in derivative securities of Nordson’s common shares, engaging in short sales of Nordson securities, or purchasing any other financial instruments (including prepaid variable forward contracts, equity swaps, collars, and exchange funds) that are designed to hedge or offset any decrease in the market value of Nordson securities. At this time, we do not prohibit other employees from hedging Nordson common shares or pledging Nordson common shares as collateral.
Equity Grant Policy
We grant equity on a consistent schedule, generally on the first day of the month following the first Compensation Committee meeting of the fiscal year, which are generally scheduled three years in advance. We do not grant performance share units, stock options, or restricted share units to our executive officers in anticipation of the release of significant earnings announcements or other material non-public information likely to result in changes to the price of our common shares. Similarly, we do not time the release of material non-public information based on equity award grant dates. The Compensation Committee may also make occasional grants of stock options and other equity-based awards at other times to recognize, retain or recruit executive officers and key employees. We have delegated limited authority to the Chief Executive Officer to grant equity awards, excluding awards to executive officers. Equity awards granted by the Chief Executive Officer in any month will be effective the first day of the following month.
Incentive Compensation Forfeiture (Clawback) Policy
Our “clawback” policy for incentive awards meets the requirements of, but is broader in its reach than, that imposed by Nasdaq listing standards and Section 10D of the Exchange Act. Under the policy, we require our current and former officers within the meaning of Rule 16a-1(f) to repay, without regard to taxes paid, excess cash-based incentive compensation and/or equity incentive awards in the event the incentive compensation was calculated based on financial statements that were required to be restated due to material noncompliance with financial reporting requirements (including both “big R” and “little r” restatements), without regard to any fault or misconduct and that noncompliance resulted in overpayment of the incentive compensation within the three fiscal years preceding the date the restatement was required (unless an enumerated clawback exception applies).
Additionally, our Board, upon the Compensation Committee’s recommendation, may, to the extent permitted by law and to the extent it determines that it is in our best interests to do so, require reimbursement or payment by any current or former executive officer to the Company of equity-based compensation and performance-based compensation in an amount determined by the Board to be attributable to: (i) conduct that violates our Code, or (ii) willful misconduct or fraud that causes harm to the Company.
Currency Fluctuation Policy
In determining Annual Cash Incentive Award and Performance Share Incentive Award payouts, the Compensation Committee adopted a policy whereby management will be held accountable for the first 10% of the impact on payouts due to currency fluctuation.
Under the policy, payout rates (as a percent of target) for the Annual Cash Incentive Award and Performance Share Incentive Award are calculated first at actual foreign currency rates and then at currency neutral rates for the U.S. dollar during the fiscal year. These two payout rates are then compared and if the difference between them is less than or equal to +/-10%, the payout will be based on the calculation at actual foreign currency rates. If the difference between these two payout rates is more than +/-10%, the currency neutral payout calculation will be used, offset by 10% points, which represents a corridor or range of fluctuation in currency rates for which management is accountable. The Compensation Committee determined at the November 2024 meeting to discontinue the use of the Currency Fluctuation Policy starting in fiscal year 2025.
Nordson Corporation – 2025 Proxy Statement | 63
QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING AND THESE PROXY MATERIALS
Why am I receiving this Proxy Statement? You have been sent this Proxy Statement and proxy/voting instruction card(s) because you were a shareholder, or held Nordson common shares through a broker, trustee, or other third party, at the close of business on January 3, 2025, the record date for shareholders entitled to vote at the Annual Meeting. As of January 3, 2025, there were 57,087,783 common shares outstanding, excluding treasury shares which cannot be voted, and each common share is entitled to one vote upon all matters presented to the shareholders.
What is a proxy? A proxy is your legal appointment of another person to vote the shares that you own in accordance with your instructions. The person you appoint to vote your shares is also called a proxy.
On the proxy/voting instruction card, you will find the names of the persons designated by the Company to act as proxies to vote your shares at the Annual Meeting. The proxies are required to vote your shares in the manner you instruct.
Who can attend the Annual Meeting? All shareholders of record as of the close of business on January 3, 2025 may attend the Annual Meeting.
Must I inform anyone of my intent to attend the Annual Meeting? No. The Annual Meeting will be held virtually and no advanced notice of attendance is required.
How do I attend the Annual Meeting? We will be hosting the Annual Meeting live via the internet. You will not be able to attend the Annual Meeting in person. Only shareholders of record as of the close of business on January 3, 2025, the record date, or their legal proxy holders, are entitled to virtually attend the Annual Meeting.
In order to attend the Annual Meeting, you must register at www.proxydocs.com/NDSN. Upon completing your registration, you will receive further instructions via email, including a unique link that will allow you access to the Annual Meeting and to vote and submit questions during the Annual Meeting.
As part of the registration process, you must enter the control number located on your proxy card, voting instruction form, or Notice of Internet Availability of Proxy Materials. If you are a beneficial owner of shares registered in the name of a broker, bank or other nominee, you will also need to provide the registered name on your account and the name of your broker, bank or other nominee as part of the registration process.
On the day of the Annual Meeting, March 4, 2025, shareholders may begin to log in to the virtual-only Annual Meeting 15 minutes prior to the Annual Meeting at 8:45 a.m. Eastern Time. The Annual Meeting will begin promptly at 9:00 a.m. Eastern Time.
How do I ask questions during the Annual Meeting? Shareholders will have substantially the same opportunities to participate as they would have at an in-person meeting. Shareholders may submit questions while registering to attend the Annual Meeting on the internet. If you wish to submit a question, you may do so by logging into the virtual meeting using the unique link provided, typing the question into the “Q&A” field and clicking “Submit”. Additional information regarding the ability of shareholders to ask questions during the Annual Meeting will be set forth in the Annual Meeting’s Rules of Conduct, which will be made available within the virtual Annual Meeting platform.
What if I have technical difficulties accessing the Annual Meeting? We will have technicians ready to assist you with any technical difficulties you may have accessing the Annual Meeting. If you encounter any difficulties accessing the virtual-only Annual Meeting platform, including any difficulties voting or submitting questions, you may call the technical support number that will be posted in your instructional email
Nordson Corporation – 2025 Proxy Statement | 93
If you are a Plan participant, your deadline to cast your vote by proxy is 11:59 p.m., Eastern Time, on February 28, 2025.
Beneficial owners. If you are a beneficial owner, you should receive voting instructions from the broker, trustee, or other nominee holding your shares. You should follow the instructions in the notice or voting instructions provided by your broker, trustee, or nominee in order to instruct your broker, trustee, or other nominee on how to vote your shares. The availability of telephone and internet voting will depend on the voting process of the broker, trustee, or nominee. Shares held beneficially may be voted electronically during the Annual Meeting only if you obtain a legal proxy from the broker, trustee or nominee giving you the right to vote the shares.
All owners. If you receive more than one proxy/voting instruction card, it is important that you vote all shares represented by the multiple cards. Each card represents different shares.
May I change my vote? Yes. You may change your vote or revoke your proxy any time before the voting deadline.
Shareholders of record. If you are a shareholder of record, you may revoke your vote at any time before the final vote at the Annual Meeting by:
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submitting a later-dated proxy by telephone or via the internet as your latest internet or telephone proxy received will be counted; |
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returning a later-dated, duly executed proxy card; |
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delivering a written revocation to our Secretary at 28601 Clemens Road, Westlake, Ohio 44145 before the Annual Meeting; or |
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attending the Annual Meeting virtually and voting again, electronically. |
Plan participants. If you are a Plan participant, you may revoke previously given voting instructions on or before 11:59 p.m., Eastern Time, on February 28, 2025 by filing either a written notice of revocation or a properly completed and signed voting instruction card bearing a later date with John Hancock Trust Company, LLC, the trustee for each of the Plans.
Beneficial owners. If you are a beneficial owner of your shares in “street name”, you must contact the broker, trustee, or other nominee holding your shares and follow their instructions for changing your vote.
All shareholders. You will not revoke a proxy merely by attending the virtual Annual Meeting. To revoke a proxy, you must take one of the actions described above.
What will happen if I do not vote my shares?
Shareholders of record. If you are the shareholder of record and you do not vote by proxy card, by telephone, via the internet, or electronically at the Annual Meeting, your shares will not be voted at the Annual Meeting.
Beneficial owners. If you are the beneficial owner of your shares in “street name”, your broker, trustee, or nominee may vote your shares only on those proposals on which it has discretion to vote. Under applicable rules your broker, trustee, or nominee does not have discretion to vote your shares on non-routine matters, such as Proposals 1 and 3. Therefore, if you do not provide voting instructions to your broker, trustee, or other nominee, your broker, trustee, or other nominee may only vote your shares on Proposal 2 and any other routine matters properly presented for a vote at the Annual Meeting.
What if I do not specify how my shares are to be voted? If you are a shareholder of record and you submit a duly executed proxy, but you do not provide voting instructions, your shares will be voted as indicated in the following table:
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PROPOSAL |
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VOTE TO BE CAST |
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Proposal 1 — Election of four directors to our Board of Directors |
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FOR all nominees |
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Proposal 2 — Ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending October 31, 2025 |
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FOR |
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Proposal 3 — Approve, on an advisory basis, the compensation of our named executive officers |
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FOR |
96 | Nordson Corporation – 2025 Proxy Statement
Communications, Nordson Corporation, 28601 Clemens Road, Westlake, Ohio 44145 or calling 440-414-5606. You may also access the Proxy Statement and Annual Report at: https://investors.nordson.com/financials/annual-reports/default.aspx.
How do I submit director nominations or shareholder proposals for the 2026 Annual Meeting?
Shareholder Proposals Submitted Under Rule 14a-8
Assuming that our 2026 Annual Meeting of Shareholders (the “2026 Annual Meeting”) is held within 30 days of the one year anniversary of the 2025 Annual Meeting, any shareholder who wishes to submit a shareholder proposal for consideration at the 2026 Annual Meeting and for inclusion in next year’s Proxy Statement under Rule 14a-8 of the Exchange Act, should send the proposal to c/o Secretary, Nordson Corporation, 28601 Clemens Road, Westlake, Ohio 44145 for receipt on or before September 19, 2025.
Proposals and Director Nominations Submitted Pursuant to our Regulations
Additionally, under our Regulations, a shareholder may submit a proposal for consideration at the 2026 Annual Meeting, but not for inclusion in next year’s Proxy Statement, if the shareholder provides written notice no earlier than 90 days and no later than 60 days prior to the 2026 Annual Meeting. Assuming that the 2026 Annual Meeting will be held on March 3, 2026, that means notice of such proposals must be received no earlier than December 3, 2025 and no later than January 2, 2026. Our Regulations are available at: https://www.nordson.com/en/about-us/corporate-governance.
Similar to the requirements under our Regulations described above, the notice of the nomination of a director must be received no earlier than 90 days and no later than 60 days prior to an annual meeting of shareholders. Assuming the 2026 Annual Meeting is held on March 3, 2026, the deadline for director nominations would be no earlier than December 3, 2025 and no later than January 2, 2026. The Governance and Sustainability Committee will assess the qualifications of the candidate according to criteria set out in Nordson Corporation’s Governance Guidelines, which are available at: https://www.nordson.com/en/about-us/corporate-governance. For a candidate to be considered for election as a director or for business to be properly requested by a shareholder to be brought before an annual meeting of shareholders, the shareholder must comply with all of the requirements of our Regulations, not just the advance notice requirements described above. Any proposal for inclusion in the proxy materials, notice of proposal, or suggestion for nominee(s) for election to our Board of Directors should be sent to c/o Secretary, Nordson Corporation, 28601 Clemens Road, Westlake, Ohio 44145.
In addition to satisfying the foregoing requirements under our Regulations, to comply with the universal proxy rules, shareholders who intend to solicit proxies in support of director nominees other than our nominees must provide notice that sets forth any additional information required by Rule 14a-19 under the Exchange Act (including the names of the nominees and a statement that such shareholder intends to solicit the holders of shares representing at least 67% of the voting power of the Company’s shares entitled to vote on the election of directors in support of director nominees other than Nordson’s nominees), which notice must be postmarked or transmitted electronically to our Secretary at our principal executive offices at the address above no later than 60 calendar days prior to the anniversary date of the 2025 Annual Meeting (for the 2026 Annual Meeting, no later than January 5, 2026, given that January 3, 2026 is a Saturday. However, if the date of the 2026 Annual Meeting
is changed by more than 30 calendar days from such anniversary date, then notice must be provided by the later of 60 calendar days prior to the date of the 2026 Annual Meeting or the 10th calendar day following the day on which public announcement of the date of the 2026 Annual Meeting is first made by us.
If the notices delivered pursuant to the Regulations are not timely received, then we will not be required to present such proposals or nominations, as applicable, at the 2026 Annual Meeting. If the Board chooses to present any information submitted after the deadlines set forth in the Regulations (other than pursuant to Rule 14a-8 of the Exchange Act) at the 2026 Annual Meeting, then the persons named in proxies solicited by the Board for the 2026 Annual Meeting may exercise discretionary voting power with respect to such information.
98 | Nordson Corporation – 2025 Proxy Statement
Pay vs Performance Disclosure - USD ($)
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12 Months Ended |
Oct. 31, 2024 |
Oct. 31, 2023 |
Oct. 31, 2022 |
Oct. 31, 2021 |
Pay vs Performance Disclosure |
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Pay vs Performance Disclosure, Table |
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2024 |
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$ |
8,566,276 |
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$ |
11,019,933 |
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$1,886,356 |
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$2,246,884 |
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$132.45 |
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$168.55 |
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$467,284 |
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$696,000 |
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2023 |
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$ |
7,058,392 |
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$ |
4,259,156 |
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$2,300,758 |
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$1,578,085 |
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$113.14 |
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$137.60 |
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$487,493 |
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$672,761 |
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2022 |
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$ |
8,432,113 |
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$ |
7,615,111 |
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$2,500,576 |
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$2,326,383 |
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$118.41 |
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$128.69 |
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$513,103 |
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$702,360 |
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2021 |
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$ |
10,308,750 |
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$ |
11,888,956 |
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$3,091,051 |
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$3,748,173 |
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$132.51 |
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$142.05 |
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$454,368 |
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$615,157 |
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(1) |
Sundaram Nagarajan served as our principal executive officer (“PEO”) for the full year for each of fiscal 2024, 2023, 2022 and 2021. For fiscal 2024, our non-PEO named executive officers (“NEOs”) included Daniel C. Hopgood, Joseph P. Kelley, Stephen P. Lovass, Jennifer L. McDonough and Stephen F. Shamrock. For fiscal 2023, our non-PEO NEOs included Joseph P. Kelley, Jeffrey Pembroke, Stephen P. Lovass, and James E. DeVries. For fiscal 2022, our non-PEO NEOs included Joseph P. Kelley, Jeffrey A. Pembroke, Stephen P. Lovass and Jennifer L. McDonough. For fiscal 2021, our non-PEO NEOs included Joseph P. Kelley, Gregory P. Merk, Jeffrey A. Pembroke and Stephen P. Lovass. |
(2) |
For each of fiscal 2024, 2023, 2022, and 2021 the values included in this column for the compensation actually paid to our PEO and the average compensation actually paid to our non-PEO NEOs reflect the following adjustments to the values included in column (b) and column (d), respectively: |
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Summary Compensation Table Total for PEO (column (b)) |
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- aggregate change in actuarial present value of pension benefits |
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$ |
559,095 |
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$ |
443,516 |
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$ |
327,553 |
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$ |
239,445 |
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+ service cost of pension benefits |
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$ |
333,794 |
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$ |
323,038 |
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$ |
372,875 |
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$ |
414,386 |
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+ prior service cost of pension benefits |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
14,728 |
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- SCT “Stock Awards” column value |
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$ |
4,219,798 |
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$ |
3,110,106 |
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$ |
2,997,098 |
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$ |
5,830,079 |
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- SCT “Option Awards” column value |
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$ |
1,740,010 |
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$ |
2,012,792 |
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$ |
2,475,660 |
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$ |
1,970,346 |
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+ year-end fair value of equity awards granted in the covered year that are outstanding and unvested as of the covered year-end |
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$ |
6,764,399 |
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$ |
2,488,293 |
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$ |
4,375,965 |
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$ |
7,643,426 |
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[+/-] year-over-year change in fair value of equity awards granted in prior years that are outstanding and unvested as of the covered year-end |
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$ |
252,320 |
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$ |
813,409 |
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$ |
1,167,627 |
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$ |
2,449,803 |
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+ vesting date fair value of equity awards granted and vested in the covered year |
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$ |
374,810 |
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$ |
713,027 |
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$ |
1,370,250 |
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$ |
— |
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[+/-] year-over-year change in fair value of equity awards granted in prior years that vested in the covered year |
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$ |
1,228,392 |
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$ |
96,827 |
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$ |
23,961 |
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$ |
(902,267) |
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- fair value as of prior-year end of equity awards granted in prior years that failed to vest in the covered year |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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+ dollar value of dividends/earnings paid on equity awards in the covered year |
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$ |
18,845 |
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$ |
36,149 |
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$ |
7,885 |
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$ |
— |
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[+ excess fair value for equity award modifications] |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Compensation Actually Paid to PEO (column (c)) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average SCT Total for Non-PEO NEOs (column (d)) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- aggregate change in actuarial present value of pension benefits |
|
$ |
72,785 |
|
|
$ |
(222,053) |
|
|
$ |
169,270 |
|
|
-$ |
332,388 |
|
|
|
|
|
|
+ service cost of pension benefits |
|
$ |
34,085 |
|
|
$ |
89,347 |
|
|
$ |
86,118 |
|
|
$ |
131,937 |
|
|
|
|
|
|
+ prior service cost of pension benefits |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,608 |
|
|
|
|
|
|
- SCT “Stock Awards” column value |
|
$ |
760,083 |
|
|
$ |
992,847 |
|
|
$ |
784,400 |
|
|
$ |
1,246,865 |
|
|
|
|
|
|
- SCT “Option Awards” column value |
|
$ |
331,812 |
|
|
$ |
447,847 |
|
|
$ |
518,945 |
|
|
$ |
418,909 |
|
|
|
|
|
|
+ year-end fair value of equity awards granted in the covered year that are outstanding and unvested as of the covered year-end |
|
$ |
1,252,349 |
|
|
$ |
854,453 |
|
|
$ |
1,048,192 |
|
|
$ |
1,778,869 |
|
|
|
|
|
|
[+/-] year-over-year change in fair value of equity awards granted in prior years that are outstanding and unvested as of the covered year-end |
|
$ |
61,536 |
|
|
$ |
175,572 |
|
|
$ |
— |
|
|
$ |
895,006 |
|
|
|
|
|
|
+ vesting date fair value of equity awards granted and vested in the covered year, |
|
$ |
46,256 |
|
|
$ |
109,324 |
|
|
$ |
292,838 |
|
|
$ |
0 |
|
|
|
|
|
|
[+/-] year-over-year change in fair value of equity awards granted in prior years that vested in the covered year |
|
$ |
128,454 |
|
|
$ |
50,727 |
|
|
$ |
71,519 |
|
|
-$ |
155,932 |
|
|
|
|
|
|
- fair value as of prior-year end of equity awards granted in prior years that failed to vest in the covered year |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0 |
|
|
|
|
|
|
+ dollar value of dividends/earnings paid on equity awards in the covered year |
|
$ |
2,528 |
|
|
$ |
11,795 |
|
|
$ |
3,377 |
|
|
$ |
795 |
|
|
|
|
|
|
[+ excess fair value for equity award modifications] |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0 |
|
|
|
|
|
|
Average Compensation Actually Paid to Non-PEO NEOs (column (e)) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The amounts deducted for aggregate change in actuarial present value of pension benefits for our non-PEOs in 2023, 2022 and 2021 represented the aggregate actuarial value of pension benefits instead of the yearly change in such figure, and therefore were overstated in the adjustments table of the pay versus performance disclosure in our previous proxy statement filing. These aggregate change in actuarial present value of pension benefits values have been updated in the adjustments table above and the average compensation actually paid to our non-PEO for those years has also been similarly updated to reflect these changes. |
(3) |
For each of fiscal 2024, 2023, 2022 and 2021, total shareholder return for the Company and the peer group was calculated as the yearly percentage change in cumulative total shareholder return based on a deemed fixed investment of $100 at market close on October 31, 2020. The yearly percentage change in cumulative total shareholder return was measured as the quotient of (a) the sum of (i) the cumulative amount of dividends for the period from October 31, 2020 through and including the last day of the covered fiscal year (the “Measurement Period”), assuming dividend reinvestment, plus (ii) the difference between stock price per share at the end and the beginning of the Measurement Period, divided by (b) stock price per share at the beginning of the Measurement Period. Each of these yearly percentage changes was then applied to a deemed fixed investment of $100 at the beginning of the Measurement Period to produce the year-end values of such investment as of the end of fiscal 2024, 2023, 2022 and 2021, as applicable. For purposes of this pay versus performance disclosure, our peer group is the S&P MidCap 400 Ind. Machinery Index (the “Peer Group”). Because fiscal years are presented in the table in reverse chronological order (from top to bottom), the table should be read from bottom to top for purposes of understanding cumulative returns over time. |
(4) |
Net income is calculated in accordance with GAAP. |
(5) |
The Company-selected measure of Base Business Operating Profit is calculated set forth as described in “Executive Compensation Discussion and Analysis” above. |
|
|
|
|
Company Selected Measure Name |
Base Business Operating Profit
|
|
|
|
Named Executive Officers, Footnote |
For fiscal 2024, our non-PEO named executive officers (“NEOs”) included Daniel C. Hopgood, Joseph P. Kelley, Stephen P. Lovass, Jennifer L. McDonough and Stephen F. Shamrock. For fiscal 2023, our non-PEO NEOs included Joseph P. Kelley, Jeffrey Pembroke, Stephen P. Lovass, and James E. DeVries. For fiscal 2022, our non-PEO NEOs includedJoseph P. Kelley, Jeffrey A. Pembroke, Stephen P. Lovass and Jennifer L. McDonough. For fiscal 2021, our non-PEO NEOs included Joseph P. Kelley, Gregory P. Merk, Jeffrey A. Pembroke and Stephen P. Lovass.
|
|
|
|
Peer Group Issuers, Footnote |
For purposes of this pay versus performance disclosure, our peer group is theS&P MidCap 400 Ind. Machinery Index (the “Peer Group”).
|
|
|
|
PEO Total Compensation Amount |
$ 8,566,276
|
$ 7,058,392
|
$ 8,432,113
|
$ 10,308,750
|
PEO Actually Paid Compensation Amount |
$ 11,019,933
|
4,259,156
|
7,615,111
|
11,888,956
|
Adjustment To PEO Compensation, Footnote |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Compensation Table Total for PEO (column (b)) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- aggregate change in actuarial present value of pension benefits |
|
$ |
559,095 |
|
|
$ |
443,516 |
|
|
$ |
327,553 |
|
|
$ |
239,445 |
|
|
|
|
|
|
+ service cost of pension benefits |
|
$ |
333,794 |
|
|
$ |
323,038 |
|
|
$ |
372,875 |
|
|
$ |
414,386 |
|
|
|
|
|
|
+ prior service cost of pension benefits |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
14,728 |
|
|
|
|
|
|
- SCT “Stock Awards” column value |
|
$ |
4,219,798 |
|
|
$ |
3,110,106 |
|
|
$ |
2,997,098 |
|
|
$ |
5,830,079 |
|
|
|
|
|
|
- SCT “Option Awards” column value |
|
$ |
1,740,010 |
|
|
$ |
2,012,792 |
|
|
$ |
2,475,660 |
|
|
$ |
1,970,346 |
|
|
|
|
|
|
+ year-end fair value of equity awards granted in the covered year that are outstanding and unvested as of the covered year-end |
|
$ |
6,764,399 |
|
|
$ |
2,488,293 |
|
|
$ |
4,375,965 |
|
|
$ |
7,643,426 |
|
|
|
|
|
|
[+/-] year-over-year change in fair value of equity awards granted in prior years that are outstanding and unvested as of the covered year-end |
|
$ |
252,320 |
|
|
$ |
813,409 |
|
|
$ |
1,167,627 |
|
|
$ |
2,449,803 |
|
|
|
|
|
|
+ vesting date fair value of equity awards granted and vested in the covered year |
|
$ |
374,810 |
|
|
$ |
713,027 |
|
|
$ |
1,370,250 |
|
|
$ |
— |
|
|
|
|
|
|
[+/-] year-over-year change in fair value of equity awards granted in prior years that vested in the covered year |
|
$ |
1,228,392 |
|
|
$ |
96,827 |
|
|
$ |
23,961 |
|
|
$ |
(902,267) |
|
|
|
|
|
|
- fair value as of prior-year end of equity awards granted in prior years that failed to vest in the covered year |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
+ dollar value of dividends/earnings paid on equity awards in the covered year |
|
$ |
18,845 |
|
|
$ |
36,149 |
|
|
$ |
7,885 |
|
|
$ |
— |
|
|
|
|
|
|
[+ excess fair value for equity award modifications] |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
Compensation Actually Paid to PEO (column (c)) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-PEO NEO Average Total Compensation Amount |
$ 1,886,356
|
2,300,758
|
2,500,576
|
3,091,051
|
Non-PEO NEO Average Compensation Actually Paid Amount |
$ 2,246,884
|
1,578,085
|
2,326,383
|
3,748,173
|
Adjustment to Non-PEO NEO Compensation Footnote |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average SCT Total for Non-PEO NEOs (column (d)) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- aggregate change in actuarial present value of pension benefits |
|
$ |
72,785 |
|
|
$ |
(222,053) |
|
|
$ |
169,270 |
|
|
-$ |
332,388 |
|
|
|
|
|
|
+ service cost of pension benefits |
|
$ |
34,085 |
|
|
$ |
89,347 |
|
|
$ |
86,118 |
|
|
$ |
131,937 |
|
|
|
|
|
|
+ prior service cost of pension benefits |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,608 |
|
|
|
|
|
|
- SCT “Stock Awards” column value |
|
$ |
760,083 |
|
|
$ |
992,847 |
|
|
$ |
784,400 |
|
|
$ |
1,246,865 |
|
|
|
|
|
|
- SCT “Option Awards” column value |
|
$ |
331,812 |
|
|
$ |
447,847 |
|
|
$ |
518,945 |
|
|
$ |
418,909 |
|
|
|
|
|
|
+ year-end fair value of equity awards granted in the covered year that are outstanding and unvested as of the covered year-end |
|
$ |
1,252,349 |
|
|
$ |
854,453 |
|
|
$ |
1,048,192 |
|
|
$ |
1,778,869 |
|
|
|
|
|
|
[+/-] year-over-year change in fair value of equity awards granted in prior years that are outstanding and unvested as of the covered year-end |
|
$ |
61,536 |
|
|
$ |
175,572 |
|
|
$ |
— |
|
|
$ |
895,006 |
|
|
|
|
|
|
+ vesting date fair value of equity awards granted and vested in the covered year, |
|
$ |
46,256 |
|
|
$ |
109,324 |
|
|
$ |
292,838 |
|
|
$ |
0 |
|
|
|
|
|
|
[+/-] year-over-year change in fair value of equity awards granted in prior years that vested in the covered year |
|
$ |
128,454 |
|
|
$ |
50,727 |
|
|
$ |
71,519 |
|
|
-$ |
155,932 |
|
|
|
|
|
|
- fair value as of prior-year end of equity awards granted in prior years that failed to vest in the covered year |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0 |
|
|
|
|
|
|
+ dollar value of dividends/earnings paid on equity awards in the covered year |
|
$ |
2,528 |
|
|
$ |
11,795 |
|
|
$ |
3,377 |
|
|
$ |
795 |
|
|
|
|
|
|
[+ excess fair value for equity award modifications] |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0 |
|
|
|
|
|
|
Average Compensation Actually Paid to Non-PEO NEOs (column (e)) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation Actually Paid vs. Total Shareholder Return |
|
|
|
|
Compensation Actually Paid vs. Net Income |
|
|
|
|
Compensation Actually Paid vs. Company Selected Measure |
|
|
|
|
Total Shareholder Return Vs Peer Group |
|
|
|
|
Tabular List, Table |
The following table lists the five financial performance measures (as defined and described in Executive Compensation Discussion and Analysis above) that we believe represent the most important financial performance measures we use to link compensation actually paid to our NEOs for fiscal 2024 to our performance:
EPS Growth |
ROIC |
EBITDA Margin |
Organic Revenue |
Base Business Operating Profit |
|
|
|
|
Total Shareholder Return Amount |
$ 132.45
|
113.14
|
118.41
|
132.51
|
Peer Group Total Shareholder Return Amount |
168.55
|
137.6
|
128.69
|
142.05
|
Net Income (Loss) |
$ 467,284,000
|
$ 487,493,000
|
$ 513,103,000
|
$ 454,368,000
|
Company Selected Measure Amount |
696,000,000
|
672,761,000
|
702,360,000
|
615,157,000
|
PEO Name |
Sundaram Nagarajan
|
|
|
|
Measure:: 1 |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Name |
EPS Growth
|
|
|
|
Measure:: 2 |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Name |
ROIC
|
|
|
|
Measure:: 3 |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Name |
EBITDA Margin
|
|
|
|
Measure:: 4 |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Name |
Organic Revenue
|
|
|
|
Measure:: 5 |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Name |
Base Business Operating Profit
|
|
|
|
PEO | Aggregate Change In Actuarial Present Value Of Pension Benefits [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
$ (559,095)
|
$ (443,516)
|
$ (327,553)
|
$ (239,445)
|
PEO | Service Cost Of Pension Benefits [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
333,794
|
323,038
|
372,875
|
414,386
|
PEO | Prior Service Cost Of Pension Benefits [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
0
|
0
|
0
|
14,728
|
PEO | Sct Stock Awards Column Value [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
(4,219,798)
|
(3,110,106)
|
(2,997,098)
|
(5,830,079)
|
PEO | Sct Option Awards Column Value [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
(1,740,010)
|
(2,012,792)
|
(2,475,660)
|
(1,970,346)
|
PEO | YearEnd Fair Value Of Equity Awards Granted In The Covered Year That Are Outstanding And Unvested As Of The Covered YearEnd [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
6,764,399
|
2,488,293
|
4,375,965
|
7,643,426
|
PEO | YearOverYear Change In Fair Value Of Equity Awards Granted In Prior Years That Are Outstanding And Unvested As Of The Covered YearEnd [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
252,320
|
813,409
|
1,167,627
|
2,449,803
|
PEO | Vesting Date Fair Value Of Equity Awards Granted And Vested In The Covered Year [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
374,810
|
713,027
|
1,370,250
|
0
|
PEO | YearOverYear Change In Fair Value Of Equity Awards Granted In Prior Years That Vested In The Covered Year [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
1,228,392
|
(96,827)
|
(23,961)
|
(902,267)
|
PEO | Fair Value As Of PriorYear End Of Equity Awards Granted In Prior Years That Failed To Vest In The Covered Year [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
0
|
0
|
0
|
0
|
PEO | Dollar Value Of DividendsEarnings Paid On Equity Awards In The Covered Year [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
18,845
|
36,149
|
7,885
|
0
|
PEO | Excess Fair Value For Equity Award Modifications [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
0
|
0
|
0
|
0
|
Non-PEO NEO | Aggregate Change In Actuarial Present Value Of Pension Benefits [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
(72,785)
|
(222,053)
|
(169,270)
|
(332,388)
|
Non-PEO NEO | Service Cost Of Pension Benefits [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
34,085
|
89,347
|
86,118
|
131,937
|
Non-PEO NEO | Prior Service Cost Of Pension Benefits [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
0
|
0
|
0
|
4,608
|
Non-PEO NEO | Sct Stock Awards Column Value [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
(760,083)
|
(992,847)
|
(784,400)
|
(1,246,865)
|
Non-PEO NEO | Sct Option Awards Column Value [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
(331,812)
|
(447,847)
|
(518,945)
|
(418,909)
|
Non-PEO NEO | YearEnd Fair Value Of Equity Awards Granted In The Covered Year That Are Outstanding And Unvested As Of The Covered YearEnd [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
1,252,349
|
854,453
|
1,048,192
|
1,778,869
|
Non-PEO NEO | YearOverYear Change In Fair Value Of Equity Awards Granted In Prior Years That Are Outstanding And Unvested As Of The Covered YearEnd [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
61,536
|
175,572
|
0
|
895,006
|
Non-PEO NEO | Vesting Date Fair Value Of Equity Awards Granted And Vested In The Covered Year [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
46,256
|
109,324
|
292,838
|
0
|
Non-PEO NEO | YearOverYear Change In Fair Value Of Equity Awards Granted In Prior Years That Vested In The Covered Year [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
128,454
|
50,727
|
71,519
|
(155,932)
|
Non-PEO NEO | Fair Value As Of PriorYear End Of Equity Awards Granted In Prior Years That Failed To Vest In The Covered Year [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
0
|
0
|
0
|
0
|
Non-PEO NEO | Dollar Value Of DividendsEarnings Paid On Equity Awards In The Covered Year [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
2,528
|
11,795
|
3,377
|
795
|
Non-PEO NEO | Excess Fair Value For Equity Award Modifications [Member] |
|
|
|
|
Pay vs Performance Disclosure |
|
|
|
|
Adjustment to Compensation, Amount |
$ 0
|
$ 0
|
$ 0
|
$ 0
|