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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.          )

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Soliciting Material under §240.14a-12

 

Bruker Corporation

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BRUKER CORPORATION
40 Manning Road
Billerica, MA 01821
(978) 663-3660

Dear Stockholder:

        On behalf of the board of directors and management of Bruker Corporation, I would like to invite you to attend our Annual Meeting of Stockholders to be held on Thursday, May 12, 201116, 2013 at 9:0030 a.m., Local Time, at the offices of Nixon Peabody LLP, 100 Summer Street, Boston, Massachusetts.

        The Notice of Annual Meeting of Stockholders and Proxy Statement, which describe the formal business to be conducted at the meeting, and Proxy Card, accompany this letter. The Company's Annual Report to Stockholders is also enclosed for your information.

        All Stockholders are invited to attend the Meeting. To ensure your representation at the Meeting, however, you are urged to vote by proxy by completing, dating and returning the enclosed Proxy Card. A postage-paid envelope is enclosed for that purpose. Regardless of the number of shares you own, your careful consideration of, and vote on, the matters before the Stockholders is important.

        I look forward to your participation and thank you for your continued support.

  Sincerely,

 

 


GRAPHIC

 

 

Frank H. Laukien, Ph.D.
Chairman, President and Chief Executive Officer


BRUKER CORPORATION
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

To Our Stockholders:

        Notice is hereby given that the Annual Meeting of the Stockholders of Bruker Corporation will be held on May 12, 2011,16, 2013, at 9:0030 a.m., Local Time, at the offices of Nixon Peabody LLP, 100 Summer Street, Boston, Massachusetts, for the following purposes:

1.
To elect the fivefour Class III nominees for director named in the accompanying proxy statement to hold office until the 20142016 Annual Meeting of Stockholders.

2.
To ratify the selection of Ernst & Young LLP as our independent registered public accounting firm for fiscal year 2011.2013.

3.
To hold an advisory vote to approve compensation paid to our named executive officers.

4.
To hold an advisory vote regarding the frequency of future advisory votes on executive compensation.

5.
To transact such other business as may properly come before the meeting or any adjournment or postponement thereof.

        The board of directors has fixed the close of business on March 31, 201122, 2013 as the record date for the determination of stockholders entitled to notice of and to vote at this Annual Meeting and at any adjournment or postponement thereof.

  By order of the board of directors

 

 


GRAPHIC

 

 

Frank H. Laukien, Ph.D.
Chairman, President and Chief Executive Officer

Billerica, Massachusetts
April 11, 201110, 2013

        All stockholders are invited to attend the meeting. Whether or not you plan to attend, you can ensure that your shares are represented at the meeting by promptly voting and submitting your proxy by telephone or by the internet, or by completing, dating and returning the enclosed Proxy Card in the enclosed postage-paid envelope. Your shares cannot be voted unless you vote by telephone or internet, date, sign and return the enclosed Proxy Card, or attend the meeting in person. Regardless of the number of shares you own, your careful consideration of, and vote on, the matters before the stockholders is important. Even if you have given your proxy, you may still vote in person if you attend the meeting. Please note, however, that if your shares are held of record by a broker, bank or other nominee and you wish to vote at the meeting, you will not be permitted to vote in person at the meeting unless you first obtain a proxy issued in your name from the record holder.

**************

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON MAY 12, 2011:16, 2013:

This Proxy Statement and the accompanying Annual Report are available via the Internet at:http://ir.bruker.com



BRUKER CORPORATION
PROXY STATEMENT

        This proxy statement and the enclosed proxy card are furnished in connection with the solicitation of proxies by the board of directors of Bruker Corporation (the "Company") for use at the 20112013 Annual Meeting of Stockholders (the "2011"2013 Annual Meeting") to be held on May 12, 2011,16, 2013, at the time and place set forth in the notice of the meeting and at any adjournments thereof. The approximate date on which this proxy statement and form of proxy are first being sent to stockholders is April 11, 2011.10, 2013.

        The holders of a majority in interest of all of the Company's common stock, par value $.01 per share ("Common Stock") issued, outstanding and entitled to vote are required to be present in person or be represented by proxy at the 20112013 Annual Meeting in order to constitute a quorum for the transaction of business. Each share of Common Stock outstanding on the record date will be entitled to one vote on all matters.

        For Proposal No. 1, the fivefour candidates for election as directors at the 20112013 Annual Meeting who receive the highest number of affirmative votes will be elected. For Proposal No. 2, the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for fiscal 2011, and Proposal No. 3, the non-binding, advisory vote regarding the compensation of the Company's named executive officers,2013, the affirmative vote of holders of a majority of the shares of Common Stock represented in person or by proxy and entitled to vote on the proposal will be required for approval. For Proposal No. 4, the non-binding, advisory vote regarding the frequency of the stockholder advisory vote to approve the compensation of the Company's named executive officers, the frequency that receives the highest number of votes will be deemed to be the non-binding recommendation of the Company's stockholders.

        Because abstentions with respect to any matter are treated as shares present or represented and entitled to vote for the purposes of determining whether that matter has been approved by the stockholders, abstentions have the same effect as negative votes for each proposal other than the election of directors and the advisory vote on the frequency of future advisory votes on executive compensation. The vote on frequency of future advisory votes on executive compensation asks stockholders to express a preference for one of three choices for future advisory votes on executive compensation: every year, every other year, or every three years. For purposes of the advisory vote on frequency of future advisory votes on executive compensation, abstentions have the same effect as not expressing a preference.directors.

        If the enclosed proxy card is properly executed and returned, it will be voted in the manner instructed by the stockholder. If a proxy card is properly submitted but contains no instructions, the shares represented thereby will be voted FOR all nominees for director in Proposal No. 1 and FOR ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for fiscal 20112013 in Proposal No. 2, FOR approval of the non-binding, advisory vote regarding the compensation of the Company's named executive officers in Proposal No. 3 and in favor, on a non-binding, advisory basis, of every three years as the frequency of the stockholder advisory vote to approve the compensation of the Company's named executive officers in Proposal No. 4.2. In addition, if other matters come before the meeting, the persons named in the accompanying proxy and acting thereunder will have discretion to vote on those matters in accordance with their best judgment. Any person signing the enclosed form of proxy has the power to revoke it by voting in person at the meeting or by giving written notice of revocation to the Secretary of the Company at any time before the proxy is exercised. Please note, however, that if your shares are held of record by a broker, bank or nominee and you wish to vote at the meeting, you will not be permitted to vote in person unless you first obtain a proxy issued in your name from the record holder.

        If shares are held in the "street name" of a broker or other nominee, the broker or nominee may not be permitted to exercise voting discretion with respect to certain of the proposals to be acted upon. If the broker or nominee is not given instructions as to how to vote such shares, the broker has authority under New York Stock Exchange rules to vote those shares for or against "routine" matters,



such as the ratification of accounting firms. Brokers cannot vote on their customers' behalf on "non-routine" proposals such as the election of directors approval of the advisory vote on the compensation of the Company's named executive officers, and the advisory vote on the frequency of voting on the compensation of the Company's named executive officers. These rules apply notwithstanding the fact that shares of the Company's Common Stock are traded on the NASDAQ Global Select Market. If the brokerage firm lacks discretionary voting power with respect to an item that is not a routine matter and you do not provide voting instructions (a "broker non-vote"), such shares will be counted for purposes of establishing a quorum to conduct business at the 20112013 Annual Meeting, but will not be counted for purposes of determining whether stockholder approval of any particular matter has been obtained.

        The Company will bear the cost of the solicitation. Although it is expected that the solicitation will be primarily by mail, regular employees or representatives of the Company (none of whom will receive any extra compensation for their activities) may also solicit proxies by telephone, telecopier and in


person and arrange for brokerage houses and other custodians, nominees and fiduciaries to send proxies and proxy materials to their principals at the expense of the Company.

        The Company's 20102012 Annual Report, including the Company's audited financial statements for the fiscal year ended December 31, 2010,2012, is being mailed to stockholders concurrently with this proxy statement.

        The Company's principal executive offices are located at 40 Manning Road, Billerica, Massachusetts 01821, and our telephone number is (978) 663-3660.


RECORD DATE AND VOTING SECURITIES

        Only stockholders of record at the close of business on March 31, 201122, 2013 are entitled to notice of and to vote at the meeting. On March 31, 2011,22, 2013, the Company had outstanding and entitled to vote 165,479,053167,037,400 shares of Common Stock. Each outstanding share of Common Stock entitles the record holder to one vote. Broadridge Financial Solutions, Inc. will tabulate all votes that are received prior to the date of the Annual Meeting. The inspector of elections, who will be one of our employees or one of our attorneys, will receive Broadridge's tabulation, tabulate all other votes, and certify the voting results.


CORPORATE INFORMATION

        Bruker Corporation was incorporated in Massachusetts as Bruker Federal Systems Corporation. In February 2000, we reincorporated in Delaware as Bruker Daltonics Inc. In July 2003, we merged with Bruker AXS Inc., and we were the surviving corporation in that merger. In connection with that merger, we changed our name to Bruker BioSciences Corporation and formed two operating subsidiaries, Bruker Daltonics and Bruker AXS, into which we transferred substantially all of their respective assets and liabilities, except cash. In July 2006, we acquired Bruker Optics Inc., also a company under common control. In February 2008, we acquired the Bruker BioSpin group of companies, which we sometimes refer to as the Bruker BioSpin Group, also a group of companies under common control. In connection with the Bruker BioSpin acquisition, we changed our name to Bruker Corporation. Our fivefour principal operating segments are Bruker BioSpin, Bruker Daltonics,CALID, Bruker MAT Bruker Optics, and Bruker Energy & Supercon Technologies, or BEST.



PROPOSAL NO. 1
ELECTION OF DIRECTORS

        The first proposal on the agenda for the 20112013 Annual Meeting is the election of Stephen W. Fesik, Dirk D.Wolf-Dieter Emmerich, Brenda J. Furlong, Frank H. Laukien and Richard M. Stein, Charles F. Wagner, Jr. and Bernhard WanglerA. Packer to serve as Class III directors for a three-year term beginning at the 20112013 Annual Meeting and ending at our 20142016 Annual Meeting of Stockholders or until a successor has been duly elected and qualified. The Company's Certificate of Incorporation, as amended, provides that the board of directors shall consist of three classes of directors with overlapping three-year terms. One class of directors is to be elected each year for a three-year term. Directors are assigned to each class in accordance with a resolution or resolutions adopted by the board of directors, each class consisting, as nearly as possible, of one-third the total number of directors. There are currently thirteentwelve members of our board of directors, consisting of four Class I directors, fivefour Class II directors and four Class III directors, and there is one vacancy within the class of Class II directors.

        At the 20112013 Annual Meeting, fivefour nominees will be elected as Class III directors to serve for a term expiring at the 20142016 Annual Meeting of Stockholders. The directors in each of Class III and Class III are serving terms expiring at the Company's Annual Meeting of Stockholders in 20132014 and 2012,2015, respectively.


        AllEach of the nominees for Class III director, Stephen W. Fesik, Dirk D.Wolf-Dieter Emmerich, Brenda J. Furlong, Frank H. Laukien and Richard M. Stein, Charles F. Wagner, Jr. and Bernhard Wangler, areA. Packer, is currently serving as a Class II directors.I director. All nominees were unanimously approved by our board of directors, including unanimous approval by our independent directors, upon the unanimous recommendation of the Nominating Committee, which is comprised of three independent directors.

        Unless marked otherwise, proxies received will be votedFOR the election of each of the fivefour nominees for the office of director. If any such nominee is unwilling or unable to serve as a nominee for the office of director at the time of the 20112013 Annual Meeting, the proxies may be voted either (1) for a substitute nominee who shall be designated by the present board of directors to fill such vacancy or (2) for the other nominees only, leaving a vacancy. Alternatively, the size of the board of directors may be reduced so that there is no vacancy. The board of directors has no reason to believe that any of the nominees will be unwilling or unable to serve if elected as a director.

        The Board of Directors recommends a vote FOR the election of each of the nominees for Director.

Certain Information Regarding Directors and Nominees

        The biographies of each of the nominees and continuing directors below contain information regarding each person's service as a director, business experience, director positions held currently or at any time during the last five years, information regarding involvement in certain legal or administrative proceedings, if applicable, and the experiences, qualifications, attributes or skills that caused the board of directors to determine that the person should serve as a director of the Company in 2011.2013.


Nominees for Election to a Three-Year Term Expiring at the 20142016 Annual Meeting

Stephen W. Fesik,Wolf-Dieter Emmerich, Ph.D. Age 5773 Director Since 2008

Dr. Fesik is currently a Professor in the Department of Biochemistry at Vanderbilt University School of Medicine. He is also a member of the Vanderbilt—Ingram Cancer Center, the Institute of Chemical Biology and the Center for Structural Biology. Prior to joining the Vanderbilt faculty in May 2009, Dr. Fesik was the Divisional Vice President of Cancer Research of Abbott Laboratories, a global, broad based health care company. Dr. Fesik joined Abbott Laboratories in 1983 and served in various research and scientific capacities. From 2003 to 2006, Dr. Fesik served as a member of the Scientific Advisory Board of the Bruker BioSpin Group. In 2003 he was awarded a lifetime achievement award in nuclear magnetic resonance by the Eastern Analytical Society and also was named a Distinguished Research Fellow of Abbott Laboratories' Volwiler Society. Dr. Fesik has received numerous awards for his scientific research and scholarship and currently serves on a number of research and scientific advisory boards. Dr. Fesik has also served on the board of directors of Inhibikase Therapeutics, a private biotechnology firm, since December 2010. Dr. Fesik holds a Ph.D. in Medicinal Chemistry from the University of Connecticut and has postdoctoral training at Yale University. Dr. Fesik brings both scientific and executive expertise to the board, with extensive research and advisory experience across multiple sectors, including various corporate, academic and institute laboratories. Dr. Fesik serves on the Company's Compensation Committee.

Dirk D. Laukien, Ph.D


Age 47


Director Since 2008

Dr. Dirk Laukien is a Senior Scientific Fellow of the Company. Prior to February 1, 2010, Dr. Dirk Laukien also served as Co-Chief Executive Officer of the worldwide Bruker BioSpin Group. Additionally, until November 11, 2009, he served as a Senior Vice President of the Company, President and Chief Executive Officer of Bruker Optics, co-President of Bruker BioSpin Corporation and as a director of various Company subsidiaries. Prior to our acquisition of Bruker Optics in July 2006, he served as President of Bruker Optics. Dr. Dirk Laukien is the half brother of Dr. Frank Laukien, a director of the Company as well as the Company's President and CEO, and Joerg Laukien, a director of the Company and executive officer of Bruker BioSpin. Dr. Dirk Laukien received his B.A. in Physics from Brandeis University and a Ph.D. in Physics from Tufts University. Dr. Dirk Laukien brings both extensive scientific and executive experience to the board, with strong management skills and knowledge of the Company's key technologies and markets.

Richard M. Stein


Age 59


Director Since 2000

Mr. Stein has served as the Company's secretary since 2000. Mr. Stein has been a partner with Nixon Peabody LLP, a law firm, or a predecessor entity, Hutchins, Wheeler & Dittmar, since January 1993. Mr. Stein holds a B.A. degree from Brandeis University and a J.D. from Boston College Law School. He has extensive experience in corporate and securities law and corporate governance matters.


Charles F. Wagner, Jr.


Age 43


Director Since 2010

Mr. Wagner has served as a director since August 2010. Since November 2010, Mr. Wagner has served as Executive Vice President of Finance and Administration and Chief Financial Officer of Progress Software Corporation, a leading provider of enterprise software located in Bedford, Massachusetts. Prior to joining Progress Software, Mr. Wagner served as Vice President and Chief Financial Officer of Millipore Corporation, a global provider of products and services in the life science tools market, from 2007 until July 2010, when Millipore was acquired by Merck KGaA. Mr. Wagner joined Millipore in 2002 and from 2003 to 2007 served as Vice President, Strategy and Corporate Development. From 1997 to 2002, he served in various roles at Bain & Company after having served as Manager, Accounting Analysis, at Millipore from 1995 to 1996 and as Manager at Coopers & Lybrand from 1990 to 1995. Mr. Wagner also serves as a director of Bruker Energy & Supercon Technologies, Inc., where he is a member of the Audit Committee. Mr. Wagner holds a B.S. from Boston College and a M.B.A. from Harvard Business School. Mr. Wagner brings to the board considerable financial and management experience with publicly-traded companies, as well as expertise in financial analysis and strategic planning and development. Mr. Wagner is a financial expert on the Company's Audit Committee.

Bernhard Wangler


Age 60


Director Since 2000

Mr. Wangler has been a German tax consultant and principal partner with Kanzlei Wangler in Karlsruhe, Germany since July 1983. He has been a Certified Public Accountant in Germany since 1984. Mr. Wangler holds a Master of Economics and Commerce degree and an M.B.A. from the University of Mannheim, Germany. Mr. Wangler has extensive experience in strategic planning and international tax and finance matters.

Directors Continuing in Office until the 2012 Annual Meeting

Tony W. Keller, Ph.D.


Age 74


Director Since 2008

Dr. Keller currently serves as vice-chairman of the board of Bruker BioSpin AG, president of the board of Bruker BioSpin Invest AG, and as a director of Bruker Energy & Supercon Technologies, Inc. In addition, since April 2010 Dr. Keller has served as honorary chairman of the Bruker BioSpin Group, where from February 2008 through March 2010 he had served as executive chairman. Prior to 2008, Dr. Keller was co-CEO of the Bruker BioSpin Group and served in that capacity for more than five years. Dr. Keller joined Bruker BioSpin in 1964 with the establishment of Spectrospin AG, and served the Bruker BioSpin Group in a variety of capacities until his retirement in March 2010. Dr. Keller holds honorary doctorates from the Technical University of Berlin, the University of Queensland and from the University of Florence. Dr. Keller brings extensive management and executive experience within the Company to the board, as well as deep knowledge of the Company's international operations.

Richard D. Kniss


Age 70


Director Since 2003

Mr. Kniss joined the Company's board of directors in July 2003 in connection with the merger of Bruker Daltonics and Bruker AXS, having served on the Bruker AXS board of directors since June 2001. Mr. Kniss was Senior Vice President and General Manager for Agilent Technologies, Chemical Analysis Group, a producer of gas and liquid chromatographs, mass spectrometers and spectrophotometers, from August 1999 until March 2001. Prior to the spin-off of Agilent from the Hewlett Packard Company, from 1995 to 1999, Mr. Kniss was Vice President and General Manager of the Chemical Analysis Group for Hewlett Packard. From 2004 to 2008, Mr. Kniss served as chairman of the board of directors of AviaraDx, Inc. (formerly Arcturus Bioscience, Inc.), a life-science tools company acquired by BioMerieux. Mr. Kniss holds a B.S. from Brown University and a M.B.A. from Stanford University. Mr. Kniss has a strong executive background in the life sciences and analytical instruments industries, as well as experience in corporate governance and public company executive compensation matters. Mr. Kniss is the chairman of the Company's Compensation Committee.


Joerg C. Laukien


Age 57


Director Since 2005

Mr. Joerg Laukien is the Chief Operating Officer of the Bruker BioSpin Group. Joerg Laukien has been a director and President of Bruker BioSpin MRI, Inc. since 1997 and Managing Director of Bruker BioSpin MRI GmbH since 1998, each of which are subsidiaries of Bruker, and served as Managing Director of Bruker Elektronik GmbH from 1991 until its merger with Bruker BioSpin GmbH in 2010. Additionally, Joerg Laukien currently serves as Executive Chairman of the board of directors of Bruker BioSpin Corporation and as a director of Bruker Energy & Supercon Technologies, Inc. Joerg Laukien is the brother of Dr. Frank Laukien, the Chairman, President and Chief Executive Officer of the Company and the half-brother of Dr. Dirk Laukien, a director of the Company. Mr. Laukien holds a B.A. from the Verwaltungs- und Wirtschafts-Akademie in Karlsruhe, Germany. Mr. Laukien brings extensive executive experience within the Company to the board, as well as experience in financial and strategic planning.

William A. Linton


Age 63


Director Since 2000

Dr. Linton serves as the lead director of our board of directors and is a member of the Company's Nominating Committee. He was appointed lead director in March 2004 by the independent members of the board of directors. As lead director, Dr. Linton performs the usual responsibilities of a lead director including acting as a liaison between management and the board of directors. Since 1978, Dr. Linton has served as the Chairman and Chief Executive Officer of Promega Corporation, a life science supply company he founded, in Madison, Wisconsin. Dr. Linton received a B.S. degree from University of California, Berkeley in 1970 and an honorary Ph.D. from Hannam University (Korea) in 2004. Dr. Linton has been a director of the Wisconsin Technology Council since 2001, serves as a director of ALSSA (Analytical & Life Science Systems Association), an industry association, and is President of the BioPharmaceutical Technology Center Institute. Dr. Linton brings to the board extensive executive, international operations management, and technical expertise in the life sciences industry, as well as significant experience in strategic planning, corporate governance, and public company executive compensation matters.

Directors Continuing in Office until the 2013 Annual Meeting

Wolf-Dieter Emmerich, Ph.D.


Age 71


Director Since 2007

        
Dr. Emmerich currently serves as a consultant to Erich Netzsch Holding, the parent company of Netzsch Instruments, a developer and manufacturer of high-precision instruments for thermal analysis and thermophysical properties measurement headquartered in Selb, Germany. Netzsch's products are employed in research and quality control in a range of industrial applications. Dr. Emmerich joined Netzsch Instruments Ltd. in 1970. Dr. Emmerich assumed worldwide responsibility for the Analyzing and Testing business unit in 1980 and was appointed to serve on the Executive Board of the Netzsch Group in 1995. He served the Netzsch Group in a variety of capacities until his retirement in 2005. Dr. Emmerich is also currently servingserved as a director, chairman of the Compensation Committee and member of the Audit Committee of Bruker Energy & Supercon Technologies, Inc., where he is the chairman of the Compensation Committee. from 2010 until April 2013. Dr. Emmerich currently serves as Chairman of the Advisory Board of the ANALYTICA International Trade Fair, a leading European trade show for companies involved in the analysis, laboratory-technology and life-science sectors, and on the board of the Bayreuth University Society. He also serves as a member of the advisory boards of Linn High Therm GmbH and Sommer GmbH &Co. KG. Dr. Emmerich holds a Physicist degree and a Ph.D. in physics from the University of Erlangen-Nuremberg. Dr. Emmerich brings scientific and technical expertise to the board, as well as extensive international business and management experience in the life-science and analytical tools industries. Dr. Emmerich serves on the Company's Compensation and Nominating Committees.


Brenda J. Furlong


Age 6365

 

Director Since 2007

        
From July 2003 to August 2006, Ms. Furlong served as Managing Director and Head of Fixed Income of Columbia Management Group, the primary investment management division of Bank of America Corporation. Prior to joining Columbia Management, Ms. Furlong was with The Hartford Financial Services Group, where she served as Chief Investment Officer and was President of Hartford Investment Management Company from October 1999 to November 2001, and also served as Senior Vice President—President–Capital Planning & Development from November 1996 to September 1999. From 1979 to December 1995, Ms. Furlong was with ITT Sheraton Corporation, where, from May 1988 to December 1995, she served as Vice President and Treasurer. Ms. Furlong is also currently servingserved as a director and chair of the Audit Committee of Bruker Energy & Supercon Technologies, Inc., where she is the chair of the Audit Committee. from 2009 until April 2013. Ms. Furlong has been a director of Zoo New England since November 2010.2010 and a director of Aviva USA Corporation, Aviva Life and Annuity Company and Aviva Life and Annuity Company of New York since November 2011. Ms. Furlong holds a M.B.A. from Northeastern University, a M.A. in international studies from American University and a B.A. in political science and sociology from Whittier College. Ms. Furlong brings to the board extensive experience in corporate finance, financial analysis and strategic planning. Ms. Furlong is a financial expert and the chairperson of the Company's Audit Committee.

Frank H. Laukien, Ph.D.

 

Age 5153

 

Director Since 1991

        
Dr. Frank H. Laukien has been the Chairman, President and Chief Executive Officer of the Company since February 1991 and is Bruker's largest shareholder. Dr. Frank Laukien also serves as a director of various subsidiaries of the Company. He served as executive chairman of the former public company Bruker AXS Inc. and its predecessor companies from August 2002 until the merger of Bruker Daltonics Inc. and Bruker AXS Inc. in July 2003. In addition, from October 1997 to August 2002, he served as the Chairman of the Board of Directors and, from October 1997 to March 2000, as the Chief Executive Officer, of Bruker AXS Inc. Until February 2010, Dr. Laukien also served as Co-Chief Executive Officer of the Bruker BioSpin Group. Dr. Frank Laukien is the brother of Joerg C. Laukien, a director of the Company and an executive officerExecutive Chairman of Bruker BioSpin Corporation, and half-brother of Dr. Dirk D. Laukien, a former director of the Company and a former executive officer of the Company and various subsidiaries.Company. Dr. Frank Laukien currently serves and has served as a director of ALSSAALDA (Analytical, & Life Science Systems& Diagnostics Association), an industry association formerly known as Analytical & Life Sciences Systems Association, or ALSSA, for several terms in the last ten years, and was ALSSA Chairman from 2002 to 2003. Dr. Frank Laukien holds a B.S. degree from the Massachusetts Institute of Technology, as well as a Ph.D. in chemical physics from Harvard University. Dr. Laukien currently serves for a term expiring in 2013 as a Trustee of the Rivers School in Weston, Massachusetts, and he is a member of the Dean's Advisory Committee of the MIT School of Science. As the Company's largest shareholder and based on his long history of leading the growth of the Company, he brings to the board the perspective of a significant stakeholder with an in-depth knowledge of all aspects of the Company's operations. He also provides extensive executive experience in organizational management, strategic planning, finance and global business development, as well as the scientific and technical background required for a complete understanding of the Company's key technologies and industry dynamics. Dr. Frank Laukien serves on the Company's BEST Special Committee.


Richard A. Packer

 

Age 5355

 

Director Since 2007

        
Since November 1999, Mr. Packer has been the Chief Executive Officer and a director of ZOLL Medical Corporation, a publicly-traded manufacturer of resuscitation devices and related software solutions.solutions that was publicly traded until it was acquired by Asahi Kasei Corporation in April 2012. He served as Chairman of ZOLL from 1999 until November 2010. From 1996 until his appointment as Chairman and Chief Executive Officer in 1999, Mr. Packer served as ZOLL's President, Chief Operating Officer and director. From 1992 to 1996, he served as Vice President of Operations of ZOLL and also served as Chief Financial Officer and Head of North American Sales of ZOLL from 1995 to 1996. Prior to joining ZOLL, Mr. Packer served for five years as Vice President of various functions for Whistler Corporation, a consumer electronics company. Before joining Whistler in 1987, Mr. Packer was a manager with the consulting firm of PRTM/KPMG, specializing in operations of high technology companies. Mr. Packer is the past Chairperson of MassMEDIC, the industry council for Medical Devices in Massachusetts. He currently serves as a board member of the Massachusetts Medical Device Development Center, a University of Massachusetts initiative to incubate medical device companies. Mr. Packer holds a M.B.A. from the Harvard Business School, as well as B.S. and M. Eng. degrees from Rensselaer Polytechnic Institute. Mr. Packer has extensive financial, operations and management experience in the medical devices industry. He also brings to the board significant experience in corporate governance, strategic planning and public company compensation matters. Mr. Packer serves on the Company's Audit Committee and is the chairman of the Company's Nominating Committee.

Directors Continuing in Office until the 2014 Annual Meeting

Stephen W. Fesik, Ph.D.Age 59Director Since 2008

Dr. Fesik is currently a Professor in the Department of Biochemistry at Vanderbilt University School of Medicine. He is also a member of the Vanderbilt–Ingram Cancer Center, the Institute of Chemical Biology and the Center for Structural Biology. Prior to joining the Vanderbilt faculty in May 2009, Dr. Fesik was the Divisional Vice President of Cancer Research of Abbott Laboratories, a global, broad based health care company. Dr. Fesik joined Abbott Laboratories in 1983 and served in various research and scientific capacities. From 2003 to 2006, Dr. Fesik served as a member of the Scientific Advisory Board of the Bruker BioSpin Group. In 2003 he was awarded a lifetime achievement award in nuclear magnetic resonance by the Eastern Analytical Society and also was named a Distinguished Research Fellow of Abbott Laboratories' Volwiler Society. Dr. Fesik has received numerous awards for his scientific research and scholarship and currently serves on a number of research and scientific advisory boards. Dr. Fesik has also served on the board of directors of Inhibikase Therapeutics, a private biotechnology firm, since December 2010. Dr. Fesik holds a Ph.D. in Medicinal Chemistry from the University of Connecticut and has postdoctoral training at Yale University. Dr. Fesik brings both scientific and executive expertise to the board, with extensive research and advisory experience across multiple sectors, including various corporate, academic and institute laboratories. Dr. Fesik serves on the Company's Compensation Committee.


Marc A. Kastner, Ph.D.


Age 67


Director Since 2013

Dr. Kastner currently serves as Donner Professor of Science at Massachusetts Institute of Technology ("MIT"), a position he has held since 1989, and, since 2007, as Dean of the MIT School of Science. Since joining the MIT Department of Physics in 1973, Dr. Kastner has served in a variety of senior faculty and leadership roles, including as Head of the MIT Department of Physics from 1988 to 2000, Director of MIT's Center for Materials Science and Engineering from 1993 to 1998 and as Associate Director of MIT's Consortium for Superconducting Electronics from 1989 to 1992. Dr. Kastner has received numerous awards for his scientific research and scholarship and currently serves on a number of research and scientific advisory boards. Dr. Kastner holds a Ph.D. in Physics from the University of Chicago. Dr. Kastner brings to the board significant scientific and technological expertise in the fields in which the Company operates, as well as extensive research and advisory experience across multiple sectors, including various academic and research laboratories.

Richard M. Stein


Age 61


Director Since 2000

Mr. Stein has served as the Company's secretary since 2000. Mr. Stein has been a partner with Nixon Peabody LLP, a law firm, or a predecessor entity, Hutchins, Wheeler & Dittmar, since January 1993. Mr. Stein holds a B.A. degree from Brandeis University and a J.D. from Boston College Law School. He has extensive experience in corporate and securities law and corporate governance matters.

Bernhard Wangler


Age 61


Director Since 2000

Mr. Wangler has been a certified German tax consultant and principal partner with Kanzlei Wangler in Karlsruhe, Germany since July 1983. He has been a Certified Public Accountant in Germany since 1984. Mr. Wangler is also a member of the advisory board of Deutsche Bank AG, Germany, since 2005. Mr. Wangler holds a Master of Economics and Commerce degree and a M.B.A. from the University of Mannheim, Germany. Mr. Wangler has extensive experience in strategic planning and international tax and finance matters.

Directors Continuing in Office until the 2015 Annual Meeting

Richard D. Kniss


Age 72


Director Since 2003

Mr. Kniss joined the Company's board of directors in July 2003 in connection with the merger of Bruker Daltonics and Bruker AXS, having served on the Bruker AXS board of directors since June 2001. Mr. Kniss was Senior Vice President and General Manager for Agilent Technologies, Chemical Analysis Group, a producer of gas and liquid chromatographs, mass spectrometers and spectrophotometers, from August 1999 until March 2001. Prior to the spin-off of Agilent from the Hewlett Packard Company, from 1995 to 1999, Mr. Kniss was Vice President and General Manager of the Chemical Analysis Group for Hewlett Packard. From 2004 to 2008, Mr. Kniss served as chairman of the board of directors of AviaraDx, Inc. (formerly Arcturus Bioscience, Inc.), a life-science tools company acquired by BioMerieux. Mr. Kniss holds a B.S. from Brown University and a M.B.A. from Stanford University. Mr. Kniss has a strong executive background in the life sciences and analytical instruments industries, as well as experience in corporate governance and public company executive compensation matters. Mr. Kniss is the chairman of the Company's Compensation Committee.


Joerg C. Laukien


Age 59


Director Since 2005

Mr. Joerg Laukien serves in a management role at various German subsidiaries within the Bruker BioSpin Group companies and was named Executive Chairman of Bruker BioSpin Corporation in 2010. Joerg Laukien has been a Managing Director of Bruker BioSpin MRI GmbH since 1997 and a Managing Director of Bruker BioSpin GmbH since 2011, each of which are subsidiaries of Bruker. Mr. Joerg Laukien also served as Managing Director of Bruker Elektronik GmbH from 1991 until its merger with Bruker BioSpin GmbH in 2010, as a director and President of Bruker BioSpin MRI, Inc. from 1997 to 2010 and as a director of Bruker Energy & Supercon Technologies, Inc. from 2008 to March 2013. Joerg Laukien is the brother of Dr. Frank H. Laukien, the Chairman, President and Chief Executive Officer of the Company, and half-brother of Dr. Dirk D. Laukien, a former director and executive officer of the Company. Mr. Laukien serves as a member of the regional advisory council of Deutsche Bank AG in Germany. Mr. Laukien holds a B.A. from the Verwaltungs- und Wirtschafts-Akademie in Karlsruhe, Germany. Mr. Laukien brings extensive executive experience within the Company to the board, as well as experience in financial and strategic planning. Mr. Joerg Laukien serves on the Company's BEST Special Committee.

William A. Linton


Age 65


Director Since 2000

Dr. Linton serves as the lead director of our board of directors. He was appointed lead director in March 2004 by the independent members of the board of directors. As lead director, Dr. Linton performs the usual responsibilities of a lead director including acting as a liaison between management and the board of directors. Since 1978, Dr. Linton has served as the Chairman, President and Chief Executive Officer of Promega Corporation, Madison, Wisconsin, a privately held life science supply company founded by Dr. Linton. Dr. Linton received a B.S. degree from University of California, Berkeley in 1970 and an honorary Ph.D. from Hannam University (Korea) in 2004. Dr. Linton has been a director of the Wisconsin Technology Council since 2001 and also serves as a director of ALDA (Analytical, Life Science & Diagnostics Association), an industry association formerly known as Analytical & Life Sciences Systems Association, or ALSSA, and Heffter Research Institute, a non-profit medical research organization, and is President of the BioPharmaceutical Technology Center Institute. Dr. Linton brings to the board extensive executive, international operations management and technical expertise in the life sciences industry, as well as significant experience in strategic planning, corporate governance, and public company executive compensation matters. In addition to serving as lead director, Dr. Linton serves on the Company's Nominating Committee.

Chris van Ingen


Age 66


Director Since 2012

Chris van Ingen has served as an advisor to various life sciences technology companies since 2007, including Bruker and certain of its subsidiaries from 2008 until 2011. Mr. van Ingen also served as a director of Bruker Energy & Supercon Technologies, Inc. from 2009 until April 2013, including as chairman of the board of directors and as a member of the Compensation Committee from 2010 to March 2013. From 2001 until October 2007, he was President of the Life Sciences and Chemical Analysis Group at Agilent Technologies, Inc. Prior to joining Agilent, Mr. van Ingen was Vice President of Sales and Marketing at Hewlett Packard's Chemical Analysis Group and held other senior management positions at Hewlett Packard's Avondale Division and Netherlands Country Operation. Mr. van Ingen currently serves on the boards of directors of the Promega Corporation, and Accelrys,  Inc. He was named Chairman of the Board of Directors of Accelrys, Inc. in January 2012 and serves on the audit committee. He previously served as a director of Alpha Innotech, Inc. from June 2009 to October 2009 and Symyx Technologies,  Inc. from February 2008 until its merger with Accelrys in July 2010. Mr. van Ingen holds a B.S. degree in analytical chemistry. Mr. van Ingen brings to the Board financial, sales and marketing, and general management experience in the analytical and life sciences industries, as well as significant experience in corporate governance, strategic planning and public company compensation matters. Mr. van Ingen serves on the Company's Audit Committee and is Chairman of the Company's BEST Special Committee.


BOARD LEADERSHIP STRUCTURE

        Under our bylaws, the chairman of the Company's board of directors has the power to preside at all meetings of the board. Dr. Frank Laukien, our Chief Executive Officer and President, serves as the Chairman of our board of directors and has done so throughout the time we have been a public company. Although the board believes that the combination of the Chairman and Chief Executive Officer roles is appropriate in the current circumstances, the board does not have a fixed policy regarding the combination or separation of the offices of Chairman and Chief Executive Officer. Our board of directors believes that it should have the flexibility to make these determinations at any given point in time in the way that it considers best to provide appropriate leadership for the Company at that time.

        The Chief Executive Officer is appointed by our board to manage the Company's daily affairs and operations. Dr. Frank Laukien's extensive industry knowledge and long history of direct involvement in the Company's operations make him best suited to serve as Chairman in order to (i) lead the board in productive discussions on important matters affecting the Company; (ii) create a firm link between management and the board and promote the development and implementation of corporate strategy; (iii) determine necessary and appropriate agenda items for meetings of the board with input from the independent lead director and board committee chairpersons; and (iv) determine and manage the amount of time and information devoted to discussion and analysis of agenda items and other matters that may come before the board. Additionally, his significant equity ownership, at over 23% of the outstanding shares of the Company's common stock, means that he has a close and direct alignment of interests with the interests of our other shareholders.


        While we believe that having a unified Chairman and Chief Executive Officer is appropriate and in the best interests of the Company and its shareholders at this time, our board structure also fosters strong oversight by independent directors. Since 2004, an independent lead director has been appointed by the independent directors to ensure an independent leadership contact. The lead director's responsibilities include: (i) consulting with the Chairman regarding agenda items for board meetings; (ii) chairing executive sessions of the independent directors; (iii) calling executive sessions of the independent directors of the board and advising the Chairman and Chief Executive Officer of actions or deliberations at such sessions; (iv) acting as a liaison between the independent directors and the full board, as necessary; and (iv) establishing, in consultation with the Chairman and Chief Executive Officer and any appropriate board committees, procedures to govern the board's work, ensuring that the board of directors is appropriately approving strategy and supervising management's progress. Dr. William Linton has served in the role of lead director since the position was established in 2004. The Chairman and Chief Executive Officer consults periodically with the lead director on governance matters and on issues facing the Company. In addition, the lead director serves as the principal liaison between the Chairman and the independent directors and presides at executive sessions of independent directors at regularly scheduled in-person board meetings. The board of directors believes that this approach appropriately and effectively complements the Company's combined Chairman and Chief Executive Officer.


BOARD MEETINGS, COMMITTEES AND COMPENSATION

        There are thirteencurrently twelve members of our board of directors. Sevendirectors and there is one vacancy within the class of directors serving for a term expiring at our 2014 Annual Meeting. Eight of our twelve current directors, namely Wolf-Dieter Emmerich, Stephen W. Fesik, Brenda J. Furlong, Marc A. Kastner, Richard D. Kniss, William A. Linton, Richard A. Packer, and Charles F. Wagner, Jr.Chris van Ingen, meet the independence requirements of the NASDAQ Stock Market LLC, or NASDAQ, listing standards.


        During fiscal year 2010,2012, the board of directors of the Company held seveneight meetings. EachOur incumbent directors, on average, attended approximately 98% of board and committee meetings during 2012. No director attended at leastless than 75 percent of the total number of 2012 meetings of the board of directors and board committees of which he or she was a member in 2010.member. It is the policy of our board of directors that at least two directors, including at least one independent director, attend our Annual Meeting, either in person or by telephonic conference. Three directors attended our 20102012 Annual Meeting.

        As described below, the board of directors has three standing committees: an Audit Committee, a Compensation Committee and a Nominating Committee.

        Audit Committee.    The Audit Committee of the board of directors is currently comprised of Brenda J. Furlong, Richard A. Packer, and Charles F. Wagner, Jr.,Chris van Ingen, each of whom satisfy the applicable independence requirements of the rules and regulations of the SEC and NASDAQ. Under these rules, we are required to have an Audit Committee consisting of at least three independent members. The Audit Committee met fourseven times during 2012 in regular session. During 2012, the 2010 fiscal year. EachAudit Committee also met periodically in connection with the Company's review of legal compliance matters at certain of its subsidiaries operating in China and Hong Kong. Ms. Furlong, Chair of the Audit Committee, and Mr. Wagner qualifies as an audit committee financial expert pursuant to applicable SEC rules and regulations.

        The Audit Committee provides assistance to the board of directors in fulfilling its legal and fiduciary obligations with respect to matters involving the accounting, auditing, financial reporting and internal control functions of the Company and its subsidiaries. The Audit Committee works extensively with the independent auditors, pre-approves all audit and non-audit services provided to the Company by its independent auditors, reviews the performance of the independent auditors and replaces or terminates the independent auditors when circumstances warrant. The Audit Committee is also charged with establishing and monitoring procedures for (i) the receipt, retention or treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters, and (ii) the confidential submission by the Company's employees of concerns regarding questionable accounting or auditing matters. None of the members of the Audit Committee has participated in the preparation of any financial statements of the Company at any time during the last three fiscal years.



The Audit Committee's charter is available on the Company's website at http://ir.bruker.com under the "Corporate Governance" section.

        Compensation Committee.    The Compensation Committee, which is comprised of Wolf-Dieter Emmerich, Stephen W. Fesik and Richard D. Kniss, all of whom meet the independence requirements of the NASDAQ Listing Rules, met sixeleven times during the 2010 fiscal year.2012. Mr. Kniss is the Chairman of the Compensation Committee. The Compensation Committee (i) administers the Company's stock option plan; (ii) determines the chief executive officer's salary, bonus, and equity based compensation; (iii) oversees the executive compensation program for the Company's other executive officers; and (iv) determines such compensation, reviews general policy matters relating to compensation and employee benefits and makes recommendations concerning these matters to the board of directors. From time to time, the Company expects that various of its senior executive officers will provide analysis and recommendations to the Compensation Committee on compensation issues, as requested by the Compensation Committee. In particular, the Chief Executive Officer annually evaluates the performance of the Chief Financial Officer and makes recommendations to the Compensation Committee regarding the Chief OperatingFinancial Officer's compensation. Additionally, the Chief Financial Officer annually evaluates the performance of the Company's executive officers other than the Chief Executive Officer and makes recommendations to the Compensation Committee regarding the compensation of these executive officers. The Compensation Committee reviews these performance evaluations and recommendations and, if the Committee deems appropriate, adopts the recommendations with little to no change. Our Chief Executive Officer, Chief Financial Officer and the DirectorGlobal Vice President of Human Resources may routinely attend meetings of the Compensation Committee to provide information relating to matters the Compensation Committee is considering. The


Compensation Committee may, from time to time, meet in executive session without any executive officers present. The Compensation Committee's charter is available on the Company's website at http://ir.bruker.com under the "Corporate Governance" section.

        Nominating Committee.    The Nominating Committee which is comprised of Wolf-Dieter Emmerich, William A. Linton and Richard A. Packer, all of whom meet the independence requirements of the NASDAQ Listing Rules, was established by the board of directors in May 2010.Rules. Mr. Packer is the Chairman of the Nominating Committee. The purpose of the Nominating Committee is to assist the board in identifying and recruiting individuals qualified to become board members, consistent with criteria approved by the board, and to recommend to the board nominees for election to the office of director at the next annual meeting of stockholders, or for election to fill any vacancies between annual meetings. While the board of directors retains responsibility for selecting nominees and recommending them for election by the Company's stockholders, the Nominating Committee is responsible for developing and implementing a process to identify qualified and willing candidates for recommendation to the board. The Nominating Committee is assisted by non-voting advisors from our board, including Dr. Frank Laukien, our Chairman, President, CEO and largest stockholder, and Mr. Joerg Laukien, a director and significant stockholder. The role of the advisors is to provide input to the Nominating Committee fromas major shareholders of the Corporation. The Nominating Committee's charter is available on the Company's website at http://ir.bruker.com under the "Corporate Governance" section.

        The Nominating Committee did not meetmet one time during fiscal year 2010. The2012. In addition to this meeting, members of the Nominating Committee met twicecommunicated periodically throughout the year regarding candidates for director and director nomination matters. At a meeting held in March 2011 andFebruary 2013, the Nominating Committee unanimously recommended the current slate of nominees for director to the full board of directors, as well as the election of Marc A. Kastner to fill one of two vacancies on the Company's board of directors.


        In addition to the standing committees described above, in April 2013 the board of directors established a temporary BEST Special Committee, comprised of Chris van Ingen, Frank Laukien and Joerg Laukien, to focus on key issues relating to the Company's Bruker Energy and Supercon Technologies division.


DIRECTOR NOMINATIONS

        On March 3, 2004, the Company adopted a policy by board resolution governing the nomination of directors, according to which the full board of directors approves all nominees for board membership. All nominees must also be approved by a majority of the Company's independent directors. Upon recommendation of the Nominating Committee, the qualifications of candidates will be reviewed by at least a majority of the independent directors of the Company, as well as the full board of directors. Stockholders may recommend director candidates for inclusion by the board of directors in the slate of nominees which the board recommends to stockholders for election as described below.

        The process followed to identify and evaluate potential candidates includes requests to board members and others for recommendations, meetings from time to time to evaluate biographical information and background material relating to potential candidates and interviews of selected candidates by the members of the Nominating Committee, the independent directors and the board. The Nominating Committee, the independent directors and the board are each authorized to retain advisers and consultants and to compensate them for their services. No such advisers or consultants were retained for this purpose during fiscal year 2010.2012.

        The Company does not have a formal policy with regard to the consideration of diversity in identifying director nominees, but strives to identify and recruit director candidates with a variety of complementary skills so that, as a group, the board will possess the appropriate talent, skills and expertise to oversee the Company's business. When considering a potential director candidate, the


Nominating Committee evaluates the entirety of each candidate's experience and qualifications. The Nominating Committee looks for personal and professional integrity, demonstrated ability and judgment and business experience.

        In considering whether to recommend any candidate for inclusion in the board's slate of recommended director nominees, the board and the independent directors apply the criteria which are set forth in a resolution of the board approved and adopted on March 3, 2004.

        These criteria include, but are not limited to, the following:

        The board and the independent directors may also consider the following for some of the director nominees:


        In evaluating candidates recommended by the Nominating Committee, the board and the independent directors do not assign specific weights to particular criteria and no particular criterion is necessarily applicable to all prospective nominees. We believe that the backgrounds and qualifications of the directors, considered as a group, should provide a significant composite mix of experience, knowledge and abilities that will allow the board to fulfill its responsibilities.

        Although the Company does not have a specific policy with respect to the nomination of directors by stockholders, the Nominating Committee will consider nominations made by stockholders. The Company believes that it is not necessary to have a policy for director nominations by stockholders because the board of directors, including the Nominating Committee and the independent directors, is able to effectively locate and evaluate potential candidates for nomination to the board of directors due to the directors' intimate knowledge of the Company and the life science industry. However, stockholders may communicate directly with the Nominating Committee of the board of directors by written communication submitted to Richard M. Stein at the address set forth below under "Stockholder Communications." Mr. Stein shall be primarily responsible for monitoring the communications and providing summaries or copies of such communications to the Nominating Committee or the board of directors as he deems appropriate, and, as described below, will submit communications to the Nominating Committee or the board of directors, as appropriate, relating to


corporate governance matters and long-term corporate strategy. Stockholders may use this process to suggest potential nominations to the board of directors. Such suggested nominations shall be forwarded to the Nominating Committee and the proposed candidates shall be evaluated using substantially the same process and applying the same criteria as used and applied in evaluating candidates submitted by board members. Nominations must be received by the Company within the timeframe set forth herein under "Time for Submission of Stockholder Proposals."

        At the 20112013 Annual Meeting, stockholders will be asked to consider the re-election of Stephen W. Fesik, Dirk D.Wolf-Dieter Emmerich, Brenda J. Furlong, Frank H. Laukien and Richard M. Stein, Charles F. Wagner, Jr. and Bernhard WanglerA. Packer to serve as Class II directors, allI directors. All of whomthe nominees for director are standing for electionre-election following the unanimous recommendation for nomination first by the Nominating Committee, and then by the full board of directors, including the unanimous approval of all of the Company's independent directors.


ROLE OF THE BOARD IN RISK OVERSIGHT

        Our board of directors considers general oversight of the Company's risk management efforts to be a responsibility of the entire board. The Audit and Compensation Committees assist the board in carrying out this responsibility by focusing on specific key areas of risk that our business faces. The board's role in risk oversight includes receiving regular reports from members of senior management on areas of material risk to the Company, or to the success of a particular project or endeavor under consideration, including operational, financial, legal and regulatory, strategic and reputational risks. The full board of directors, or the Audit Committee in the case of financial and compliance risks that are within the oversight of the Audit Committee or the Compensation Committee in the case of matters relating to our compensation policies and practices, receives these reports from members of management to enable the board or the Audit or Compensation Committee, as applicable, to understand the Company's risk identification, risk management, and risk mitigation strategies. To facilitate this process and assist the Audit Committee in fulfilling its responsibility for monitoring legal and compliance risks, our director of internal audit, who reports directly to our Senior Vice President, Corporate Finance and Accounting, also has a dotted line reporting relationship to the chairperson of the Audit Committee. The Audit Committee chairperson is authorized to give instructions and assignments directly to the director of internal audit, as to which assignments the director of internal audit reports directly and only to the Audit Committee chairperson. When a report is evaluated at the Audit Committee level, the chairperson of the Audit Committee subsequently reports on the matter to the full board to ensure coordination of the board's risk oversight activities. Our board of directors also believes that risk management is an integral part of our strategic planning process, which addresses, among other things, the risks and opportunities facing the Company.



COMPENSATION OF DIRECTORS

        We pay the non-employee members of our board of directors a mix of cash and share-based compensation based on the determination of the Compensation Committee. Employee directors, including Dr. Frank Laukien Dr. Dirk Laukien and Mr. Joerg Laukien, receive compensation only as employees of the Company and receive no additional compensation for service as a director. Similarly, Dr. Tony Keller, a former employee director who retired at the expiration of his term in May 2012, and Dr. Dirk D. Laukien, a former employee director who resigned from the board of directors and from his position as Senior Scientific Fellow of the Company effective March 31, 2010, receivesJuly 10, 2012, did not receive compensation for his ongoing service to the Bruker BioSpin Group and receives no additional cash compensation as a director of the Company.director. Directors are reimbursed for reasonable out-of-pocket expenses incurred in attending meetings of the board or committees thereof.

Components of Director Compensation

        Effective April 1, 2012, the Compensation Committee approved certain changes to non-employee director cash compensation after consideration of a survey of director compensation at comparable


public companies and comparison of the survey results to the Company's director compensation practices established in 2006. During 2010,2012, directors other than the employee directors and Dr. Tony Keller were paid cash compensation according to the following schedule:

Annual Retainer:

 

 Director Compensation
in Effect January 1, 2012
 Changes to Director
Compensation Effective
April 1, 2012
 Total Retainer for
the Year Ended
December 31, 2012
 

Board Service

 $26,000  $26,000 $30,000 $29,000 

Audit Committee Service

 $18,000  $18,000  $18,000 

Audit Committee Chair

 $10,000  $10,000 $15,000 $13,750 

Compensation Committee Service

 $8,000  $8,000  $8,000 

Compensation Committee Chair

 $5,000  $5,000  $5,000 

Attendance Fees per Board meeting:

 $1,500 

Nominating Committee Service

  $2,000 $1,500 

Nominating Committee Chair

  $3,000 $2,250 

Attendance Fees per Board meeting

 $1,500   

        In addition to the cash component of director compensation, share-based awards are made annually to non-employee directors as a component of their compensation. On January 5, 2010,2012, the Company granted each non-employee director, other than Mr. Richard Stein, an annual equity award consisting of an option to purchase 6,000 shares of common stock. The 20102012 option grants vest ratably in annual installments over three years on the anniversary of the grant date, beginning on January 5, 2011.2013. Effective for grants beginning in 2013, during 2012 the Compensation Committee approved an increase in the number of shares covered by the annual grants to non-employee directors, other than Mr. Stein so long as he remains a partner at Nixon Peabody LLP, to 10,000 shares from 6,000 shares. On January 5, 2011,7, 2013, annual equity awards were granted to all non-employee directors other than Mr. Stein. The 20112013 grants to non-employee directors again consisted of an option to purchase 6,00010,000 shares of common stock. The 2011 grants veststock, which option vests ratably in annual installments over three years on the anniversary of the grant date, beginning on January 5, 2012.7, 2014.

        Throughout 2012, Dr. Wolf-Dieter Emmerich, Ms. Brenda Furlong, Dr. Tony Keller, Dr. Frank Laukien, Mr. Joerg Laukien, Mr. van Ingen and Mr. Charles F. Wagner, Jr., the Company's Executive Vice President and Chief Financial Officer, also serveserved as members of the board of directors of Bruker Energy & Supercon Technologies, Inc. ("BEST"), or BEST, a wholly-owned subsidiary of the Company. As non-employee directors of BEST, Dr. Emmerich, Ms. Furlong and Mr. Wagner arevan Ingen were each entitled to receive $15,000 as an annual retainer, payable in four equal quarterly installments per annum, as well as meeting fees of $1,000 per meeting attended. Additionally, until accepting employment with the Company in June 2012, Mr. Wagner was entitled to receive $15,000 as an annual retainer and meeting fees of $1,000 per meeting attended for his service as a non-employee director of BEST. In 2012, Dr. Emmerich receivesreceived additional compensation of $7,500 per year for service as chair of the Compensation Committee of the BEST board of directors. For hisdirectors and $10,000 for service as a BEST director and chair ofon the BEST Compensation Committee, which began in March 2010, Dr. Emmerich received a pro-rated portion of the 2010 annual retainer and Compensation Committee compensation.Audit Committee. Ms. Furlong receivesreceived additional compensation of $15,000 per yearin 2012 for service as chair of the Audit Committee of the BEST board of directors. Mr. Wagner receivesvan Ingen received additional compensation of $10,000 per yearin 2012 for service onas the Audit CommitteeExecutive Chairman of the BEST board of directors. For hisdirectors and $5,000 for service on the BEST Compensation Committee. Mr. Wagner received total compensation of $15,500 for service on the BEST board of directors in 2012, including $5,000 for service on the BEST Audit Committee. On August 13, 2012, the Company granted each of Dr. Emmerich, Ms. Furlong, Dr. Keller, Mr. van Ingen, Mr. Joerg Laukien and Mr. Wagner an equity award for service as a BEST director, and memberconsisting of the BEST Audit Committee, which began in June 2010, Mr. Wagner received a pro-rated portion of the 2010 annual retainer and Audit Committee compensation. In April 2010, Dr. Emmerich was granted optionsan option to purchase 10,000 shares of BEST common stock upon his election to the BEST board. Additionally, as newly-appointed chair of the BEST Compensation Committee, in July 2010 Dr. Emmerich received options to purchase an additional 5,000 shares of BEST common stock. Mr. Wagner was also granted options to purchase 10,000 shares of BEST common stock in July 2010 in connection with his election toof the BEST board.



The 2010 BESTCompany. These option grants vest ratably in annual installments over three years on the anniversary of the grant date, beginning in 2011.on August 13, 2013.

        The following table provides information concerning the compensation paid by us to each of our non-employee directors for the fiscal year ended December 31, 2010.2012. The compensation received bypaid to Dr. Frank Laukien, our President and Chief Executive Officer, and to Mr. Wagner, our Executive Vice


President and Chief Financial Officer, is shown in the 20102012 Summary Compensation Table on page 3138 of this proxy statement. For his continued service to the Bruker BioSpin Group in 2012, Dr. Keller received total compensation of 57,850 Swiss Francs, or approximately $61,700 based on an average conversion rate of 1 Swiss Franc = $1.066. Dr. Keller's 2012 compensation included an automobile allowance of 7,189 Swiss Francs, or approximately $7,664. The compensation paid in 2012 to each of Dr. Dirk Laukien and Mr. Joerg Laukien as employees of the Company as well as to Dr. Keller for his service to the Bruker BioSpin Group, is described in this proxy statement under the heading "Transactions"Transactions with Related Persons" beginning on page 34 of this proxy statement.Persons."


20102012 Director Compensation Table

Name
 Fees Earned
or Paid in Cash
 Option Awards(1) Total 

Wolf-Dieter Emmerich(2)

 $85,500 $87,270 $172,770 

Stephen W. Fesik

 $46,000 $41,820 $87,820 

Brenda J. Furlong(3)

 $105,250 $87,270 $192,520 

Chris van Ingen(4)

 $67,462 $80,495 $147,957 

Richard D. Kniss

 $54,000 $41,820 $95,820 

William A. Linton

 $42,500 $41,820 $84,320 

Richard Packer

 $62,750 $41,820 $104,750 

Richard M. Stein

 $41,000   $41,000 

Bernhard Wangler

 $41,000 $41,820 $82,820 

Name
 Fees Earned
or Paid in Cash
 Option Awards(1) Total 

Collin J. D'Silva(2)

 $277,354 $819,420 $1,096,774 

Wolf-Dieter Emmerich(3)

 $71,625 $150,420 $222,045 

Stephen W. Fesik

 $44,500 $45,420 $89,920 

Brenda J. Furlong(4)

 $97,500 $45,420 $142,920 

Richard D. Kniss

 $49,500 $45,420 $94,920 

William A. Linton

 $35,000 $45,420 $80,420 

Richard Packer

 $54,500 $45,420 $99,920 

Richard M. Stein

 $36,500   $36,500 

Charles F. Wagner, Jr.(5)

 $34,674 $93,150 $127,824 

Bernhard Wangler

 $36,500 $45,420 $81,920 

(1)
Reported amounts reflect the grant date fair value of stock options granted to each director in 2010,2012, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718. Assumptions used in the calculations of these amounts may be found in Note 2 to our 20102012 audited financial statements included in the Company's Annual Report on Form 10-K filed with the SEC on March 1, 2011.February 28, 2013. The actual amount realized by the director will likely vary based on a number of factors, including our performance, stock price fluctuations and applicable vesting.

Name
 Number of
Vested Options
 Number of
Unvested Options
  Number of
Vested Options
 Number of
Unvested Options
 

Collin J. D'Silva(1)

 23,190 112,060 

Wolf-Dieter Emmerich(2)

 8,940 12,060 

Wolf-Dieter Emmerich(1)

 20,940 17,060 

Stephen W. Fesik

 3,960 11,040  14,940 12,060 

Brenda J. Furlong(3)

 5,940 12,060 

Brenda J. Furlong(2)

 17,940 17,060 

Chris van Ingen(3)

  10,000 

Richard D. Kniss

 19,090 12,060  29,515 12,060 

William A. Linton

 23,190 12,060  30,440 12,060 

Richard Packer

 5,940 12,060  17,940 12,060 

Richard M. Stein(4)

 2,250     

Charles F. Wagner, Jr.(5)

  3,000 

Bernhard Wangler

 35,190 12,060  29,940 12,060 
(1)
Mr. D'Silva resigned from his position as director, effective March 31, 2010. The options reported in the table include 100,000 unvested options granted to Mr. D'Silva as the

(2)
In addition to the options reported in the table included in footnote (1) above, Dr. Emmerich held vested options to purchase 10,000 shares of BEST common stock and unvested options to purchase 15,0005,000 shares of BEST common stock as of December 31, 2010,2012, of which unvested options 10,000 vest ratably in annual installments over three years on the anniversary of the grant date, beginning3,333 vested on April 1, 20112013 and 5,0001,667 will vest ratably in annual installments over three years on the anniversary of the grant date, beginning on July 1, 2011.2013.


(3)(2)
In addition to the options reported in the table included in footnote (1) above, Ms. Furlong held vested options to purchase 5,00015,000 shares of BEST common stock, and unvestedwhich options to purchase 10,000 shares of BEST common stock as of December 31, 2010, which unvested options vest ratably in annual installments on each of October 1, 2011 and October 1, 2012.are fully vested.

(4)(3)
In addition to the options reported in the table included in footnote (1) above, inas of December 31, 2012 Mr. van Ingen held vested options to purchase 23,333 shares of BEST common stock and unvested options to purchase 6,667 shares of BEST common stock, which unvested options will vest on April 1, 2013.

(4)
In May 2003 in connection with his service as a board member, Mr. Stein was granted an option to purchase 2,500 shares of common stock, which options are fully vested and held by Nixon Peabody LLP.

(5)
In addition to the options reported in the table included in footnote (1) above, Mr. Wagner held unvested options to purchase 10,000 shares of BEST common stock as of December 31, 2010, which options vest ratably in annual installments over three years on the anniversary of the grant date, beginning on July 1, 2011.
(2)
Mr. D'Silva resigned from his position as a director in March 2010 in order to become president of the Company's Chemical and Applied Markets division. The reported amount includesIncludes cash payments of $15,500totaling $36,500 for service as a non-employee director, Compensation Committee member and Audit Committee member prior to his resignation from the Company's board, $75,000 for consulting services in connection with the acquisition of the Chemical and Applied Markets division and $186,854 for service as president of that division.BEST.

(3)
Includes cash payments totaling $28,625 and option awards valued at $105,000 for service as a director and Compensation Committee member of BEST.

(4)
Includes cash payments totaling $33,000$34,000 for service as a director and Audit Committee chair of BEST.

(5)(4)
Includes cash payments totaling $13,500 and an option award valued at $69,600$34,000 for service as a director, chair of the board of directors and Audit Committee member of BEST.


SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

        The following table sets forth certain information regarding beneficial ownership of the Company's common stock as of April 5, 2011March 22, 2013 by (i) each person who is known by the Company to own beneficially more than 5% of the Company's common stock, (ii) each of our directors and nominees for director, (iii) each named executive officer of the Company, as defined in "Summaryunder the heading "Summary of Executive Compensation," and (iv) all directors and executive officers who served as directors or named executive officers as of April 5, 2011March 22, 2013 as a group. Unless otherwise noted, the address of each beneficial owner is c/o Bruker Corporation, 40 Manning Road, Billerica, Massachusetts 01821.

Beneficial Owners
 Amount and Nature of
Beneficial Ownership(1)
 Percent
of Class(1)
 

Named Executive Officers, Directors and Director Nominees

       

Frank H. Laukien(2)

  38,884,445  23.5%

William J. Knight(3)

  258,350  * 

Brian P. Monahan(4)

  77,750  * 

Dirk D. Laukien(5)

  15,862,972  9.6%

Joerg C. Laukien(6)

  18,089,795  10.9%

Brenda J. Furlong(7)

  12,940  * 

William A. Linton(8)

  58,690  * 

Richard M. Stein(9)

  8,099  * 

Bernhard Wangler(10)

  44,190  * 

Richard Kniss(11)

  48,136  * 

Wolf-Dieter Emmerich(12)

  14,940  * 

Richard A. Packer(13)

  15,940  * 

Tony W. Keller(14)

  43,340  * 

Stephen W. Fesik(15)

  8,940  * 

Charles F Wagner, Jr. 

     

All executive officers and directors as a group (15 persons)

  73,428,507  44.4%
Beneficial Owners
 Amount and Nature of
Beneficial Ownership(1)
 Percent
of Class(1)
 

Named Executive Officers, Directors and Director Nominees

       

Frank H. Laukien(2)

  39,238,194  23.5%

William J. Knight(3)

  321,350  * 

Charles F. Wagner, Jr.(4)

  95,948  * 

Mark R. Munch(5)

  30,000  * 

Burkhard Prause(6)

  10,000  * 

Stephan Westermann(7)

  77,500  * 

Joerg C. Laukien

  18,193,295  10.9%

Brenda J. Furlong(8)

  24,940  * 

William A. Linton(9)

  70,690  * 

Richard M. Stein(10)

  5,849  * 

Bernhard Wangler(11)

  56,190  * 

Richard D. Kniss(12)

  60,116  * 

Wolf-Dieter Emmerich(13)

  26,940  * 

Richard A. Packer(14)

  27,940  * 

Stephen W. Fesik(15)

  20,940  * 

Marc A. Kastner

     

Chris van Ingen

     

All executive officers and directors as a group (21 persons)(16)

  58,090,772  34.8%

 

Beneficial Owners
 Amount and Nature of
Beneficial Ownership(1)
 Percent
of Class(1)
 

5% Beneficial Owners

       

T. Rowe Price Associates, Inc.(17)

  18,736,680  11.2%

100 E. Pratt Street

       

Baltimore, MD 21202

       

Beneficial Owners
 Amount and Nature of
Beneficial Ownership(1)
 Percent
of Class(1)
 

5% Beneficial Owners(16)

       

T. Rowe Price Associates, Inc.(17)

  10,735,120  6.5%
 

100 E. Pratt Street

       
 

Baltimore, MD 21202

       

*
Less than one percent

(1)
Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock subject to options held by that person that are currently exercisable, or become exercisable within 60 days from the date hereof, are deemed outstanding. However, such shares are not deemed outstanding for purposes of computing the percentage ownership of any other person.

(2)
Includes options to purchase 125,0003,750 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof.hereof and 100,000 shares of restricted common stock. Also includes 2,116,309includes: 1,846,499 shares owned by Robyn Laukien as to which FrankDr. Laukien has voting power; 336,607 shares held by each of his adult children, as to which Dr. Laukien has sole voting power and shared investment power, and 201,702 shares held as custodian for the benefit of his


(3)
Includes options to purchase 195,000258,000 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof.

(4)
Includes options to purchase 72,7507,920 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof and 88,028 shares of restricted common stock.

(5)
Includes options to purchase 30,000 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof.

(5)
Includes 41,293 shares of common stock held by the Dirk D. Laukien Trust for Leah Laukien, dated June 1, 2000 and 100,000 shares of restricted common stock.

(6)
Includes options to purchase 2,04010,000 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof.

(7)
Includes options to purchase 12,94077,500 shares of common stock that are currently exercisable, or become exercisable, within 60 days of the date hereof.

(8)
Includes options to purchase 26,69023,940 shares of common stock that are currently exercisable, or become exercisable, within 60 days of the date hereof.

(9)
Includes options to purchase 4,750 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof, of which options to purchase 2,500 shares of common stock are held by Nixon Peabody LLP, the law firm at which Mr. Stein is a partner.

(10)
Includes options to purchase 38,69033,940 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof.

(10)
Includes options to purchase 2,500 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof. Such options are held by Nixon Peabody LLP, the law firm at which Mr. Stein is a partner.

(11)
Includes options to purchase 25,09035,940 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof.

(12)
Includes options to purchase 14,94035,515 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof.

(13)
Includes options to purchase 11,94026,940 shares of common stock that are currently exercisable, or become exercisable, within 60 days of the date hereof.

(14)
Includes options to purchase 30,00023,940 shares of common stock that are currently exercisable, or become exercisable, within 60 days of the date hereof.

(15)
Includes options to purchase 8,94020,940 shares of common stock that are currently exercisable, or become exercisable within 60 days of the date hereof.

(16)
In additionIncludes options to thepurchase 476,825 shares reported, 7,434,344 shares,of common stock that are currently exercisable, or 4.5%become exercisable within 60 days of the total number of shares outstanding as of April 5, 2011, are beneficially owned by Mrs. Isolde Laukien-Kleiner. Mrs. Laukien-Kleiner is the stepmother of Dr. Frank Laukien and Mr. Joerg Laukien and the mother of Dr. Dirk Laukien.date hereof.

(17)
According to a Schedule 13G filed February 9, 2011,7, 2013, T. Rowe Price ("Price Associates") beneficially owns, or may be deemed to beneficially own, 10,735,12018,736,680 shares as a result of acting as investment advisor to various investment companies and institutional clients. Price Associates has sole power to dispose of 10,735,12018,736,680 shares, and has sole power to vote or direct the voting of 2,240,9704,041,530 shares.

EXECUTIVE OFFICERS

        The Company's executive officers are:

Name
 Age Position

Frank H. Laukien, Ph.D. 

  53

Chairman, President and Chief Executive Officer

Charles F. Wagner, Jr. 

45

Executive Vice President and Chief Financial Officer

Bernd Gewiese, Ph.D. 

55

Co-President, Bruker BioSpin Corporation

Michael G. Knell

36

Vice President of Finance and Chief Accounting Officer

Werner E. Maas, Ph.D. 

49

Co-President, Bruker BioSpin Corporation

Mark R. Munch, Ph.D. 

51 

President, CEOBruker Nano, Inc. and ChairmanBruker MAT Group

William J. KnightJuergen Srega

  6158 

Chief Operating Officer

Brian P. Monahan

39

Chief Financial OfficerPresident, Bruker CALID Group

        Our executive officers are elected annually by the board of directors and serve until their successors have been duly elected and qualified. Ourdirectors. In February 2013, our board of directors has determined thatdesignated the Company has no otherpersons listed above as the Company's executive officers as offor the date of this proxy statement and had no other executive officers duringfiscal year ending December 31, 2013. During the fiscal year ended December 31, 2010.2012, Dr. Frank Laukien, Mr. Knell, Dr. Munch, Dr. Burkhard Prause and Stephan Westermann served as executive officers of the Company. Additionally, Mr. Wagner has served since July 2012 as our Executive Vice President and Chief Financial Officer and Mr. William Knight served as Chief Financial Officer until July 2012 and as Chief Operating Officer until February 2012. For biographical information relating to Dr. Frank Laukien, who serves as both an executive officer and a director of the Company, please see "Certain"Certain Information Regarding Directors and Nominees"Nominees" above. Biographical information relating to our current non-director executive officers is presented below.

        William J. Knight.Charles F. Wagner, Jr.    In November 2009, Mr. Knight was appointed Chief Operating Officer of the Company effective February 1, 2010. Prior to assuming his current role, Mr. KnightWagner has served as the Company's Executive Vice President and Chief Financial Officer from October 2004 until Februarysince July 2012. From November 2010 and as Treasurer from October 2004 to March 2009.2012, Mr. Knight served asWagner was the Executive Vice President of Finance and Administration and Chief Financial Officer of Anika Therapeutics, Inc.,Progress Software Corporation, a provider of therapeutic products, from 2002 to 2004. He alsoenterprise software located in Bedford, Massachusetts. Mr. Wagner served as Vice President and Chief Financial Officer of Zycos,Millipore Corporation, a global provider of products and services in the life science tools market, from 2007 until July 2010, when Millipore was acquired by Merck KGaA. Mr. Wagner joined Millipore in 2002 and from 2003 to 2007 served as Vice President, Strategy and Corporate Development. From 1997 to 2002, he served in various roles at Bain & Company after having served as Manager, Accounting Analysis, at Millipore from 1995 to 1996 and as Manager at Coopers & Lybrand from 1990 to 1995. Mr. Wagner served as a director of the Company and member of the Audit Committee from August 2010 to June 2012. Additionally, from 2010 to March 2013, Mr. Wagner served as a director of Bruker Energy & Supercon Technologies, Inc., where he was a developermember of DNA-based therapeutic products,the Audit Committee. Mr. Wagner holds a B.S. from 2000Boston College and a M.B.A. from Harvard Business School.

        Michael G. Knell.    Mr. Knell has served as the Company's Vice President of Finance and Chief Accounting Officer since March 2012. Prior to 2002,joining the Company, Mr. Knell was with Ernst & Young LLP in its Boston office, where since 1998 he served in various roles, including most recently as Partner—Assurance Services and as Chief Financial Officera senior manager of NMT Medical, Inc.,Assurance Services from 2006 until his promotion to partner in July 2011. Mr. Knell's audit experience at Ernst & Young included service for a providervariety of cardiovascularclients in the retail, consumer products and neurological medical devices, from 1998 to 2000.manufacturing industries. Mr. KnightKnell is a Certified Public Accountant in Massachusetts and holds a B.B.A.Bachelor of Science degree in AccountingBusiness Administration from the State University of New York at Buffalo.


        Bernd Gewiese, Ph.D.    Dr. Gewiese has served since January 2013 as Co-President of Bruker BioSpin Corporation, a wholly-owned subsidiary of the Company, and, together with Dr. Maas, is responsible for the global operations of our Bruker BioSpin Group, which manufactures and distributes magnetic resonance and preclinical imaging instrumentation in the basic research, life sciences and industrial markets. Dr. Gewiese has served since 2010 as Co-President, and since 2007 as Executive Vice President, of the Company's Bruker BioSpin operating division. He also served as Executive Vice President of Bruker BioSpin Corporation from 2008 until January 2013. From 1999 to 2007, Dr. Gewiese has served in a variety of management roles within Bruker BioSpin GmbH, Bruker BioSpin MRI GmbH Bruker BioSpin Corporation. He joined Bruker BioSpin MRI GmbH in 1992 as MRI product manager, after five years of scientific work in MRI at the Steglitz Klinikum of the Free University of Berlin. Dr. Gewiese holds a Ph.D. in in-vivo NMR/MRI from the Technical University of Berlin, Germany.

        Werner E. Maas, Ph.D.    Dr. Maas has served since January 2013 as Co-President of Bruker BioSpin Corporation, a wholly-owned subsidiary of the Company, and, together with Dr. Gewiese, is responsible for management of the global operations of our Bruker BioSpin Group, which manufactures and distributes magnetic resonance and preclinical imaging instrumentation in the basic research, life sciences and industrial markets. Dr. Maas has served since 2010 as Co-President, and since 2007 as Executive Vice President, of the Company's Bruker BioSpin operating division. He also served as Executive Vice President of Bruker BioSpin Corporation from 2008 until January 2013. Dr. Maas joined Bruker BioSpin in 1992 as a Postdoctoral Fellow, after which he served as a research scientist. From 2001 to 2010 he served as Bruker BioSpin's Vice President for R&D and also served from 2005 to 2010 as Vice President of Bruker BioSpin MRI, Inc. Dr. Maas holds a Ph.D. in Chemistry from the University of Wisconsin.Nijmegen in The Netherlands.

        Brian P. Monahan.Mark R. Munch, Ph.D.    In November 2009, Mr. Monahan was appointed Chief Financial OfficerDr. Munch has served since September 2012 as President, Bruker MAT Group, with responsibility for management of the global operations of our Bruker MAT Group, which manufactures and distributes the Company's advanced analytical X-ray technologies and spark-optical emission spectroscopy, atomic force microscopy and stylus and optical metrology instrumentation used in non-destructive molecular, materials and elemental analysis. Dr. Munch has also served as President of Bruker Nano, Inc., a wholly-owned subsidiary of the Company, effectivesince October 2010. Prior to joining Bruker Nano, Inc., from February 1, 2010. From March 2009 until assuming his role as Chief Financial Officer, Mr. Monahan served as Chief Accounting Officer and2008 to October 2010 Dr. Munch was Executive Vice President of Finance.Veeco Instruments Inc. Dr. Munch has also served as a Senior Vice President of Coherent, Inc. from February 2006 to January 2008 and as President and Chief Executive Officer of Cooligy, Inc., a subsidiary of Emerson Electric, from 2004 to 2006. Dr. Munch's background includes over 23 years of experience in marketing, product development, operations and sales, as well as experience in managing significant business units of multi-national corporations. Dr. Munch holds a Bachelor of Science degree in Chemical Engineering from the University of Colorado and a Master of Science degree and Ph.D. in Chemical Engineering from Stanford University.

        Juergen Srega.    Mr. MonahanSrega joined the Company as President, Bruker CALID Group in April 2004 as Corporate ControllerJanuary 2013. In this position Mr. Srega is responsible for management of the global operations of our Bruker CALID Group, which manufactures and was appointed Chief Accounting Officer and Vice President of Finance in March 2009. In addition to his corporate responsibilities, Mr. Monahan has served in various financial and operational roles atdistributes the Company's Bruker Daltonics division. Beforemass spectrometry and chromatography instruments for life science and applied markets, as well as analytical instruments for chemical, biological, radiological, nuclear and explosives detection and research and process instruments based on infrared and Raman molecular spectroscopy technologies. Prior to joining the Company, Mr. MonahanSrega served as Managersince 1996 in a variety of Accounting and Financial Reportingsenior management roles at Thermo Fisher Scientific International, Inc., a global provider of analytical instruments, equipment, reagents and consumables, software and services for research, analysis, discovery and diagnostics headquartered in Waltham, Massachusetts. At Thermo Fisher Scientific, Mr. Srega led a number of significant operating divisions, including as Vice President and General Manager Biomarkers, BRAHMS GmbH, from December 2002 through April 20042011 to 2012, Vice President and asGeneral Manager Scientific Instruments Division Global Products from 2005 to 2011 and Vice President and


General Manager Advanced MS from 1996 to 2004. Prior to 1996, Mr. Srega was with Badenwerk AG, a German power utility company located in Karlsruhe, Germany, from 1988 to 1995 and an audit manager for PricewaterhouseCoopers LLPemployee of Bruker GmbH from July 1999 through December 2002.1980 to 1988. Mr. Monahan is a Certified Public Accountant andSrega holds a B.S.B.A. in AccountingFinance from theNord Akademie in Hamburg, Germany and a B.A. in Engineering from Karlsruhe University of Massachusetts.Applied Sciences in Karlsruhe, Germany.


COMPENSATION DISCUSSION AND ANALYSIS

        This Compensation Discussion and Analysis ("CD&A") describes the principles, objectives, and features of our executive compensation program, which is generally applicable to each of our senior officers. However, this CD&A focuses primarily on the program as applied to our Chief Executive Officer and the other named executive officers included in the Summary Compensation Table, whom we refer to collectively in this proxy statement as the "named executive officers." For 2012, our named executive officers were:

Executive Overview

        Our executive compensation program is designed to attract, motivate and retain the individuals that lead the Company. Our approach to compensation for our executive officers targets a mix of competitive salaries, performance-based cash incentive awards linked to corporate and individual objectives and long-term equity incentive awards. We believe that our compensation policies and practices are effectively designed to motivate and reward performance, and that the mix of compensation elements creates incentives that are closely aligned with increasing shareholder value.

        Our performancebusiness strategy is to create value for our stockholders based on our ability to innovate and generate rapid revenue growth, both organically and through acquisitions. Achieving improvements in fiscal year 2010 wasour gross profit margins and operating margins is also critical to our success. In 2012, our revenues grew by 8.5% to $1.79 billion, despite a difficult economic environment in certain of our key markets. Adjusted for changes in foreign exchange rates and recent acquisitions, our 2012 revenues grew by 11.9%. While we reported improvement in our gross margins on a GAAP basis, our GAAP operating margins declined, primarily due an increase in impairment and other one-time charges in 2012. On an adjusted basis, however, both our gross margins and operating margins increased. As a result of increasing pricing pressures, changes in the mix of products sold toward lower margin products and increases in production costs, particularly in our Bruker CAM operating division, the increases in both adjusted operating margins and adjusted gross margins were not as strong as our year-over-year revenue grew by 17%the increases we had established as goals for 2012. Our earnings per share on a GAAP basis declined to $1.3 billion and our stock price increased approximately 38%. Despite continuing uncertainty$0.46 per share in the global economic environment throughout much2012 from $0.55 per share in 2011, primarily as a result of 2010, we realized solid improvements in keyvarious non-recurring charges. Adjusted for certain non-recurring items, 2012 earnings per share of $0.83 was little changed compared to $0.82 for 2011.



measures such as gross profit margin and operating income and our earnings per share grew by approximately 18%. During the year we also completed several strategically important acquisitions that offered opportunities to enhance our product portfolio and expand our market reach, and we made significant progress toward integrating the acquired businesses.

        Highlighted below are some of the key actions and decisions with respect to our executive compensation programs for fiscal year 2010,2012, as approved by the Compensation Committee:



2011 Say on Pay Vote

        In May 2011, our stockholders cast an advisory vote on the Company's executive compensation decisions and policies as disclosed in the proxy statement for the 2011 Annual Meeting of Stockholders. Over 99 percent of the shares voted on the matter at the 2011 Annual Meeting of Stockholders approved the compensation decisions and policies described in the 2011 proxy statement. The Compensation Committee again considered this result in 2012 and determined that it was not necessary to make any material changes to the Company's compensation policies and practices in response to the most recent advisory vote. At the Company's 2011 Annual Meeting of Stockholders, our stockholders also voted on a proposal on the frequency of future stockholder advisory votes regarding the compensation of the Company's named executive officers. A frequency of once every three years received the highest number of votes cast, as well as a majority of the votes cast on the proposal. Consistent with these results, our stockholders will next be asked to cast an advisory vote regarding executive officer compensation at the Company's 2014 Annual Meeting of Stockholders.

Executive Compensation Philosophy

        Our key objectives in structuring and determining executive compensation are to:

        To achieve these objectives, we have embraced a compensation philosophy that seeks to align compensation with our strategic objectives and reward our executive officers for meeting certain performance goals. Executive compensation is based in part on a pay-for-performance philosophy, through annual incentive bonus awards which emphasize both company and individual performance measures that correlate closely with the achievement of our short and long term performance objectives. To motivate our executive officers, we focus on cash compensation in the form of salary and bonus, a portion of which is tied to the individual's performance, and we augment this cash compensation annually with equity grants. In structuring executive compensation, the Compensation Committee focuses on our goal of long-term enhancement of stockholder value through grants of equity incentive awards with extended vesting schedules.

Compensation Process and Methodology

        Our executive compensation program is administered by the Compensation Committee of the board of directors. The Compensation Committee oversees the Company's stock optionequity incentive plan, determines the chief executive officer's salary, bonus, and equity-based compensation, oversees the executive compensation program for our other executive officers, including reviewing and approving the overall values and forms of compensation for the named executive officers listed in the 20102012 Summary Compensation Table included in this proxy statement as well as for other officers, reviews general policy matters relating to compensation and employee benefits and makes recommendations concerning these matters to the board of directors.


        The Compensation Committee annually assesses competitive market compensation for our executive officers using a variety of sources, including cash compensation data derived from an independent source, Salary.com's CompAnalyst Executive,sources for a reference group of publicly-traded companies in the same or similar industries. Although individual pay is driven largely by individual and corporate performance considerations, the Compensation Committee uses the reference group data as a "market check" to ensure that individual cash compensation levels remain reasonable and competitive. Although theThe companies in the reference group vary in terms of size, with some being significantly larger than us and others being significantly smaller than us,as the Compensation Committee believes that a reference group consisting of competitors of various sizes provides useful insight for their consideration of compensation levels, including information about the range and median of competitive salaries and cash bonuses. Although individual pay is driven largely by individual and corporate performance considerations, the Compensation Committee has historically used reference group data as a "market check" to help ensure that individual cash compensation levels remain reasonable and competitive. Our management provides input on companies considered for inclusion in the reference group, but the Compensation Committee makes the final determination as to the reference group selection. The companies that are included

        During 2012, the Compensation Committee engaged an independent compensation consultant, QTI Consulting, Inc., to provide guidance to the Committee and to management on compensation trends and program designs and an objective perspective on the process of evaluating and developing proposals regarding our pay practices. In light of the growth in recent years in the reference group are reviewed



annually bysize of the Company and its global operations, changes in the competitive landscape as a result of industry consolidation and evolving changes in the Company's own organizational and management andstructure, the Compensation Committee and can change from yearmanagement worked with the compensation consultant throughout 2012 to, year asamong other things, develop an expanded peer group for competitive compensation comparisons, analyze internal pay equity across the Company's global operations and recommend a unified global structure for the Company's compensation practices based on current competitive market conditions warrant.

        Forpay levels. Although the fiscal year ended December 31, 2010,initial results of this work helped inform the reference group selectedCompensation Committee's assessments and determinations of compensation in the latter half of 2012, it is expected the analyses and recommendations provided by the Compensation Committee for evaluatingcompensation consultant will play a greater role in the recommended base payevaluation of the Company's compensation process and annual incentive bonus targets of our Chief Executive Officer and Chief Financial Officer included:

Affymetrix Inc.PerkinElmer, Inc.
Agilent Technologies, Inc.Sequenom, Inc.
Caliper Life Sciences, Inc.ThermoFisher Scientific, Inc.
Dionex CorporationVarian, Inc.
Keithley Instruments Inc.Waters Corporation
Mettler-Toledo International Inc.

        The Compensation Committee considered market capitalization and revenue,program design beginning in addition to certain qualitative factors, to be appropriate for evaluating the competitiveness of potential cash compensation, including the target level of cash incentive bonuses, of our executive officers' compensation relative2013. QTI Consulting, Inc. did not provide any other services to the compensation of executivesCompany in similar functions at these companies. In general, the Compensation Committee considered the median compensation levels of the companies in the reference group to be appropriate competitive comparisons, in light of our relative market position. The following compares the Company to the selected reference group for these key metrics and compares the potential cash compensation, including the target level of cash incentive bonuses, of our Chief Executive Officer and Chief Financial Officer to the median cash compensation of comparable executives in the reference group (dollars in billions, except total cash compensation):2012.

 
 Market
Capitalization
 Revenue Total Cash
Compensation
 

Reference Group, range

 $0.1 – $19.5 $0.0 – $10.1    

Reference Group, median

 
$1.5
 
$0.8
    
 

Chief Executive Officer

     $925,056 
 

Chief Financial Officer

      661,905 

Bruker Corporation

 
$2.0
 
$1.1
    
 

2010 Salary and Target Cash Incentive Bonus:

        
  

Chief Executive Officer

     $975,000 
  

Chief Financial Officer

     $400,000 

        The Compensation Committee selected a broader group of companies, primarily in the fields of healthcare and biotechnology, as a reference group for reviewing potential cash compensation, including the target level of the cash incentive bonus, of the Chief Operating Officer. The Compensation Committee believed that an expanded group was useful because many of the companies in the Chief Executive Officer and Chief Financial Officer reference group did not have chief operating officers. A broader reference group provided the Compensation Committee with additional data to assess the reasonableness and competitiveness of our Chief Operating Officers' salary and target cash incentive bonus compensation.


        For the fiscal year ended December 31, 2010, the reference group selected by the Compensation Committee for evaluating the base pay and annual incentive bonus target of the Chief Operating Officer included:

Abiomed, Inc.Harvard Bioscience, Inc.
Alkermes, Inc.Helicos BioSciences Corporation
Alnylam Pharmaceuticals, Inc.Hologic, Inc.
Analogic CorporationInsulet Corporation
ArQule, Inc.Momenta Pharmaceuticals, Inc.
athenahealth, Inc.NeuroMetrix, Inc.
Biogen Idec Inc.NMT Medical, Inc.
Boston Scientific CorporationPanacos Pharmaceuticals, Inc.
Cubist Pharmaceuticals, Inc.PAREXEL International Corporation
Curis, Inc.ThermoFisher Scientific, Inc

        In assessing and approving the recommended compensation potential of our Chief Operating Officer, the Compensation Committee considered the compensation levels of chief operating officers within companies in the reference group in light of our relative market position, including the fact that a number of the companies in the reference group were considerably smaller in terms of market capitalization. The following compares the Company to the selected reference group for these key metrics and compares the potential cash compensation, including the target level of cash incentive bonus, of our Chief Operating Officer to the median cash compensation of comparable executives in the reference group (dollars in billions, except total cash compensation):

 
 Market
Capitalization
 Revenue Total Cash
Compensation
 

Reference Group, range

 $0.0 – $19.5 $0.0 – $10.1    

Reference Group, median

 
$0.7
 
$0.1
    
 

Chief Operating Officer

     $461,641 

Bruker Corporation:

 
$2.0
 
$1.1
    
 

2010 Salary and Target Cash Incentive Bonus:

        
  

Chief Operating Officer

     $505,000 

        The Chief Executive Officer is responsible for making recommendations to the Compensation Committee for our company-wideCompany-wide performance goals and the bonus goals and weightings for the Chief Operating Officer and the Chief Financial Officer.Company's other executive officers. The Chief Executive Officer is also responsible for developing and providing a proposal to the Compensation Committee for his own bonus plan and target levels. The Compensation Committee reviews the recommendations of the Chief Executive Officer and determines the final bonus structure and goals for each of thesethe executive officers, including threshold and target bonus levels. After the close of the fiscal year, the Chief Executive Officer, assisted by the Chief Financial Officer, provides the Compensation Committee with his assessment of the performance of the Chief Operating Officer and the Chief Financial Officerother executive officers against their respective bonus goals and proposed bonus payout. When determining the bonus payout for the executive officers, the Compensation Committee, while considering the recommendations of the Chief Executive Officer, makes the final determination based on its assessment of theeach executive officer's performance relative to thehis or her performance-based goals. The determination of the bonus earned is generally made within the first quarter after the end of the fiscal year, allowing time to assess the achievement of the bonus goals. On occasion, additional bonuses in excess of those calculated to have been earned have been awarded by the Compensation Committee in recognition of exceptional individual performance or contributions to company performance.


2012 Executive Compensation Program

        In establishing and evaluating fiscal 2012 compensation for our executive officers as of January 1, 2012, the Compensation Committee determined that the competitive assessment of reference group data compiled by the Company in 2010 continued to provide a relevant context for its evaluation of the over-all competitiveness of the Company's executive compensation programs. The Compensation Committee therefore referred to the 2010 assessment as one source of market information in its determinations of executive salary and cash incentive bonus award opportunities for fiscal year 2012. The reference group considered by the Compensation Committee for its evaluation of the recommended base pay and annual incentive bonus targets of our Chief Executive Officer and Chief Financial Officer included:

Affymetrix Inc.PerkinElmer, Inc.
Agilent Technologies, Inc.Sequenom, Inc.
Caliper Life Sciences, Inc. (acquired by PerkinElmer in 2011)ThermoFisher Scientific, Inc.
Dionex Corporation (acquired by ThermoFisher Scientific in 2011)Varian, Inc. (acquired by Agilent Technologies in 2010)
Keithley Instruments Inc. (acquired by Tektronix in 2010)Waters Corporation
Mettler-Toledo International Inc.

        The Compensation Committee considered market capitalization and revenue in addition to certain qualitative factors, to be appropriate for evaluating the competitiveness of potential cash compensation, including the target level of cash incentive bonuses, of our executive officers as of January 1, 2012, relative to the compensation of executives in similar functions at these companies. In general, the Compensation Committee considered the median compensation levels of the companies in the reference group to be appropriate competitive comparisons, in light of our relative market position. The following table, which reflects the data compiled in 2010 for the reference group, compares the Company to the selected reference group for these key metrics and compares the 2012 potential cash compensation, including the target level of cash incentive bonuses, of our Chief Executive Officer, Dr. Laukien, and Chief Financial Officer and Chief Operating Officer as of January 1, 2012, Mr. Knight, to the median cash compensation of comparable executives in the reference group based on the data compiled in 2010 (dollars in billions, except total cash compensation):

 
 Market Capitalization Revenue Total Cash Compensation 

Reference Group, range

  $0.1 – $19.5  $0.0 – $10.1    

Reference Group, median

  
$1.5
  
$0.8
    

Chief Executive Officer

       $925,056 

Chief Financial Officer

       $661,905 

Bruker Corporation

  
$2.6
  
$1.8
    

2012 Salary and Target Cash Incentive Bonus:

          

Frank H. Laukien, Chief Executive Officer

       $994,338 

William J. Knight, Chief Financial Officer

       $521,153 

        In July 2012, Mr. Wagner joined the Company and replaced Mr. Knight as Chief Financial Officer. The compensation package recommended by the Chief Executive Officer to the Compensation Committee represented total target annual compensation of $1,975,000, consisting of total target cash compensation of $975,000, including a base salary of $475,000 and target annual cash bonus and other compensation totaling at least $500,000, and total annual equity compensation valued at $1,000,000 in the form of stock options and restricted stock. In evaluating the 2012 compensation package recommended for Mr. Wagner, the Compensation Committee considered Mr. Wagner's compensation history at previous employers, as well as a competitive assessment of three year average annual compensation of the chief financial officers of the following public companies: Charles River Laboratories International Inc., PerkinElmer, Inc., Thermo Fisher Scientific, Inc. and Waters Corporation. The Compensation Committee considered these companies to be appropriate reference points based on market capitalization and revenue, in addition to certain qualitative factors. The following table compares the compensation recommended for Mr. Wagner to the three year average annual compensation of the chief financial officers of the selected reference group:

 
 Total Cash
Compensation
 Total Equity
Compensation
 Total Annual
Compensation
 

Reference Group

 $1,016,257 $1,225,906 $2,242,163 

Recommended Target Cash and Equity Compensation:        

          

Charles F. Wagner, Jr., Chief Financial Officer

 $975,000 $1,000,000 $1,975,000 

        Based on this reference data, Mr. Wagner's experience and compensation history as chief financial officer of Progress Software Corporation and Millipore Corporation and expected contributions to the Company, the Compensation Committee approved the recommended compensation package for Mr. Wagner. Cash compensation paid to Mr. Wagner in 2012 was prorated for his length of service as Chief Financial Officer. Mr. Wagner's minimum cash bonus was set at $200,000 for 2012, equal to 80% of his prorated target bonus level. In August 2012, the Compensation Committee approved an initial grant of restricted stock to Mr. Wagner, with a grant date fair value of approximately $1,000,000.

        Additionally, upon their election as executive officers in March 2012, the Compensation Committee reviewed the 2012 salaries and cash incentive plans of Dr. Munch, Dr. Prause and Mr. Westermann, as well as Mr. Knell, and determined that the base salary and cash incentive plans of each of these executive officers was appropriate in light of the individual executive officer's experience and management responsibilities.

Components of Executive Compensation

        Total compensation consists of cash compensation in the form of annual base salary and annual incentive bonus awards, as well as long-term incentive compensation in the form of stock option and restricted stock grants.

        Annual Base Salary.    Base salaries are determined based on a variety of factors, including each officer's levels of responsibility, experience and potential, and a comparison of salaries paid to peers within the Company and to those with similar roles at other companies. Base salaries are set at levels that the Compensation Committee believes are reasonably competitive to allow us to attract and retain qualified managers.

        Base salaries are reviewed annually and may be adjusted after considering the various factors described above. The Chief Executive Officer makes base salary recommendations to the Compensation Committee for the Chief Operating Officer and the Chief Financial Officer.Company's other executive officers. When setting the base salaries of thesethe executive officers, the Compensation Committee, while considering the recommendations of the Chief Executive Officer, makes the final determination based on the factors listed above and the executive officer's


performance during the previous year. The Compensation Committee also evaluates the performance of and sets the salary for the Chief Executive Officer.

        Annual Cash Incentive Awards.    Annual incentive awards in the form of performance-based cash incentive bonuses for the Chief Executive Officer and our other executive officers are based upon management's success in meeting our financial and strategic goals. Typically, specific criteria for these bonuses have been determined based on a combination of qualitative and quantitative measures established each year by the Compensation Committee after consultation with management. The specific individual goals vary for each executive based on their responsibilities and role within our company and may include financial or strategic measures, including, among others, revenue growth, gross profit and operating profit margin improvement, working capital ratio improvements, achieving return on invested capital goals, meeting earnings per share targets, identifying and developing new product and market opportunities and furthering or achieving other strategic initiatives. The individual goals are intended to reward performance which results in our Company meeting or exceeding its financial or operational goals.

        The Compensation Committee also considers the mix of performance goals in order to balance the incentives created to mitigate risks that may be associated with a particular performance goal. In 2010,2012, for example, the executive officers'cash incentive plans established for our Chief Executive Officer and Chief Financial Officer combined a revenue target goal was combined with gross profit margin improvement, operating margin improvement, working capital and earnings per share goals that emphasized cost reduction as well as top-line performance.performance based on the business plan approved by our board of directors. Cash incentive bonus awards reflect both the individual's performance compared with his performance goals for the year and the overall performance of our company.company or the particular operations under the executive officer's leadership.

        Long-Term Incentives.    Equity incentive compensation in the form of stock options and restricted stock is designed to provide long-term incentives to executive officers and other employees, to encourage the executive officers and other employees to remain with us and to enable recipients to develop and maintain a long-term stock ownership position in the common stock, which in turn motivates the recipient to focus on long-term enhancement in stockholder value. The Company's 2010 Incentive Compensation Plan is the vehicle used for grants of stock options and restricted stock to our executive officers and other employees. Company management evaluates the efficacy of our long-term incentive compensation on an ongoing basis, and may from time to time provide input and recommendations to the Compensation Committee with regard to the optimal form and extent of equity incentives to be granted to employees, including the executive officers.

        While generally granted on an annual basis, all optionsStock option and restricted stock grants are discretionary and may be granted by the Compensation Committee at any time. Our company hasHistorically, we have not adopted



performance-vesting,awarded equity incentive compensation with performance-based vesting, meaning that individual vesting is not based upon the achievement of any specific goals or objectives. The Compensation Committee does, however, consider the individual and Company's performance in determining the total and individual equity awards. The Compensation Committee has determined that equity compensation awards to executives and all other employees should be based upon the economic value of the grant award and should be considered part of the overall compensation package in determining award levels. In making specific grants to executives, the Compensation Committee evaluates each executive officer's total equity compensation package. The Compensation Committee generally reviews the option and restricted stock holdings of each of the executive officers as well, including vesting and exercise price and the then current value of such options or restricted stock. We consider long-term equity compensation to be an integral part of a competitive executive compensation package as both a way to reinforce the individual's commitment to the Company and an important mechanism to align the interests of management with those of our stockholders. Annual grants are generally made in the first or second quarter of each year. In 2010, however, the Company did not award stock options to the named executive officers.


Mix of Compensation

        In accordance with our pay-for-performance philosophy, short-term cash incentive compensation and long-term equity incentive awards are intended to be a significant portion of overall compensation, with this at-risk component increasing as a percentage of overall compensation potential as the officer's responsibility increases. For example, in 20102012 over 50% of our Chief Executive Officer's potential cash compensation, and approximately 30% of each of our other named executive officers'total potential cash compensation was at risk through his short-term cash incentive programs.program. Additionally, recognizing the importance of providing further incentives directly linked to the performance of our common stock, the Compensation Committee in August 2012 awarded Dr. Laukien, our Chief Executive Officer and Mr. Wagner, our Chief Financial Officer, restricted stock grants valued at the time of the respective award at over 100% of the executive officer's total target cash compensation, subject in each case to time-based vesting and continued employment.

Fiscal 20102012 Base Salaries

        Base salaries of our executive officers are reviewed annually by the Compensation Committee and may be adjusted to reflect competitive conditions, changes in responsibilities or individual performance. In 2007,For fiscal 2012, the Compensation Committee reviewed peer groupapproved a 2.5% salary informationincrease for each of Dr. Laukien and determined thatMr. Knight, the salariestwo named executive officers who had served as executive officers of the Company's executive officers were each below the median of their peer group comparables. The Compensation Committee therefore approved management's recommendation to phaseCompany in base salary increases over a multi-year period commencing in 2008 to raise, as appropriate, each executive officers' salary component of compensation to a more competitive level relative to the peer group. For 2009, however, as part of a series of cost-reduction initiatives in a deteriorating global economic environment, certain members of our management team, including each of the current executive officers, voluntarily accepted temporary salary reductions ranging from 10% to 25% of their respective 2008 base salary.

        For 2010, the Compensation Committee restored2011. Accordingly, Dr. Laukien's base salary increased to $425,000, the level it had been prior to his volunteering a 25% salary reduction for 2009. Consistent with our pay-for-performance philosophy, Dr. Laukien's$444,338 from $433,500 and Mr. Knight's base salary remains belowincreased to $371,153 from $362,100. As further described under the medianheading "2012 Executive Compensation Program" in this CD&A, the Compensation Committee approved an annual base salary of Chief Executive Officers of$475,000 for Mr. Wagner, who joined the selected reference groupCompany in July 2012 and represents less than half of his potential total cash compensation.

        In November 2009, upon being promoted to their current positions,replaced Mr. Knight our Chief Operating Officer, and Mr. Monahan,as our Chief Financial Officer, were awardedOfficer.

        The 2012 base salaries approved for Dr. Munch, Dr. Prause and Mr. Westermann were: $330,000 for Dr. Munch; €183,700 (equivalent to $236,220) for Dr. Prause; and €173,915 (equivalent to $223,637) for Mr. Westermann. In August 2012, in connection with Dr. Munch's promotion to group President of the Bruker MAT Group and in recognition of his increased responsibilities in that role, the Compensation Committee approved a 15% increase in Dr. Munch's base salary, increases of approximately 23% and 53%, respectively, or approximately 21% and 49%, respectively, above their salaries prior to accepting a 10% voluntary salary reduction for 2009. The Compensation Committee determined that the adjusted salary levels of $355,000 for Mr. Knight and $275,000 for Mr. Monahan were appropriate in light of their increased responsibilities and the Committee's assessment of competitive market conditions for individuals with similar experience serving in similar positions. The salaries of Mr. Knight and Mr. Monahan remained at these adjusted levels throughout 2010.$380,000, which became effective upon approval.


Cash Incentive Plans and Review of Fiscal 20102012 Performance

        Following a review in 2009 of the Company's cash incentive plan metrics and structure, the Compensation Committee revised the Company's methodology for determining the amounts to be awarded to our named executive officers based on annual quantitative and qualitative performance goals.        Under the methodology adopted by the Compensation Committee for years beginning with 2010, the paymentpayments for cash incentive bonuses linked to the achievement of pre-established quantitative performance goals will beare calculated based on percentage achievement of the quantitative target goal, with no threshold or maximum. In cases where an individual quantitative goal improvement metric is less than 1%, the payout for achievement of that goal will beis 100% up to a full 1.0% improvement, and pro-rata for achievement in excess of 1.0%. If the less than 1% goal is not achieved, then for each 0.1% shortfall the payment will beis reduced by 10%. For example, for a goal of 0.5% improvement in operating margin, achievement of a 0.8% improvement would result in a 100% payment of the target with respect to that goal, achievement of a 1.1% improvement would result in a 110% payment of the target with respect to that goal and achievement of a 0.4% improvement would result in a 90% payment of the target with respect to that goal. Payments for qualitative goals will beare made in a range of 50% to 100%, with 50% of the target amount payable if the Compensation Committee determines that a qualitative goal was partially achieved, 75% of the target amount payable if the Compensation Committee determines that a qualitative goal was substantially achieved and 100% of the target amount payable if the Compensation Committee determines that a qualitative goal was fully achieved. For example, if an executive officer achieves 30% of a quantitative performance goal then the 20102012 cash incentive bonus will include an amount equal to 30% of the target amount allocated to that goal. If the Compensation Committee determines that the executive officer has made substantial progress toward achieving a qualitative performance goal, the cash incentive bonus payment will include an amount equal to 75% of


the target amount allocated to that goal. In order to provide additional motivation to the executive officers, and to reward outstanding corporate performance, the Compensation Committee has not set a maximum amount that can be earned in the event that the executive officers exceed their quantitative goals in the performance-based incentive plans. Bonus awards linked to individual qualitative goals, however, are to be limited to 100% of the target bonus amount allocated to each of those goals. The Compensation Committee may, in theirits discretion, award cash incentive bonuses above the target level in the event it determines that an executive officer has delivered exceptional performance. The 2012 cash incentive plans approved for named executive officers newly elected in March 2012, including Dr. Munch, Dr. Prause and Mr. Westermann, were based in part on legacy plans of various operating subsidiaries of the Company and differ in some respects from the description above. Following the 2012 transition year, we expect to harmonize these plans for all executive officers, other than Dr. Munch, so that the incentive compensation plans of our executive officers operate under a common set of quantitative performance goals and calculation methodologies.

        The Company believes that revenue growth        Based upon its consideration of reference group bonus information and enhanced operating efficiency are critical to our success and will be key drivers of delivering value to our shareholders. Theother market reference sources, the Compensation Committee has determined that the quantitativetarget bonus levels initially established in 2010 for Dr. Laukien and Mr. Knight continued to be within a reasonable and competitive range relative to their responsibilities. As a result, the target bonus levels of these executive officers were not changed for 2012. As further described above under the heading "2012 Executive Compensation Program" in this CD&A, the Compensation Committee approved an annualized target bonus level of $500,000 for Mr. Wagner, who replaced Mr. Knight as our Chief Financial Officer in July 2012.

        Additionally, the Compensation Committee reviewed the 2012 cash incentive targets set forth below, effectiveplans of Dr. Munch, Dr. Prause and Mr. Westermann upon their election as executive officers in March 2012, and determined that the target bonus levels of these executive officers, ranging from $189,000 to $203,000, was appropriate in light of each of the individual executive officer's particular management responsibilities and overall compensation package.

        Management and the Compensation Committee believe the 2012 cash incentive plans established for 2010 through 2012, provide balanced incentives and are an appropriate mix of targets for measuring our executive officers' contributionsofficers, including each of our named executive officers, were appropriately designed to achievingprovide meaningful performance incentives, relative to both fixed cash compensation in the form of salary and overall potential cash compensation, consistent with the Company's strategic goals. Forgoals and objectives and each individual executive officer's responsibilities. The following table summarizes the 2012 target bonus levels approved for each of the years 2010, 2011 and 2012, performance of our named executive officers isand the relationship of performance-based cash compensation at target levels to be measured against our business plan goals for these key metrics. Quantitative factors will continue to provide 70% ofbase salary and total potential cash incentive compensation potential, with the remaining 30% allocated to individual qualitative factors to be established by the Compensation Committee annually after consultation with management.compensation.


 
 Target Level % of Base Salary
at Target Achievement
 % of Total Potential
Cash Compensation
at Target Achievement
 

Frank H. Laukien

 $550,000  124% 55%

Charles F. Wagner, Jr.(1)

 $500,000  105% 51%

William J. Knight(1)

 $150,000  40% 29%

Mark R. Munch(2)

 $198,000  52% 34%

Burkhard Prause(3)

 $203,000  86% 46%

Stephan Westermann(3)

 $189,000  85% 46%

2010 – 2012 Incentive Performance Targets

Quantitative Performance Goal
Weighting

Revenue Growth (currency-adjusted)

15%

Gross Margin Improvement

10%

Operating Margin Improvement

15%

Net Income/EPS Improvement

10%

Working Capital Ratio Reduction

20%

Total Quantitative Goal Weighting:


70

%

Qualitative Goal Weighting:

30%

        Specific 2010 cash incentive targets established for Mr. Knight and Mr. Wagner for service as Chief Financial Officer. For 2012, Mr. Wagner's minimum bonus level was set at $200,000.

(2)
Percentages based on salary of $380,000 effective as of August 2012. Reflecting Dr. Munch's initial 2012 base salary level of $330,000, the percentage of base salary at target achievement was 60% and the percentage of total potential cash compensation at target achievement was 38%.

(3)
Amounts in the table represent the U.S. dollar equivalent value of Dr. Prause's and Mr. Westermann's base salary (€183,700 and €173,915, respectively), based on the 2012 average midpoint of €1.0 =$1.2859 dollars.

        Specific quantitative and qualitative performance goals and the weightings established by the Compensation Committee to measure and reward our named executive officers' performance in 2012, and the performance of the named executive officers were as follows:

2010 Cash Incentive Targets
  
 
 
 Target Level % of Base Salary
at Target Achievement
 % of Total Potential
Cash Compensation
at Target Achievement
 

Frank H. Laukien

 $550,000  129% 56%

William J. Knight

 $150,000  42% 30%

Brian P. Monahan

 $125,000  45% 31%

        The Compensation Committee set Dr. Laukien's 2010 target bonus at $550,000, unchanged from the 2009 target level. Dr. Laukien's target bonus level was maintained at the prior year level based on the Compensation Committee's determination that the target amount continued to provide an appropriate cash incentiveachieved relative to his base salarythese goals, are described below.

Frank H. Laukien, Chairman, President and total compensation mix. Mr. Knight's bonus target for 2010 was set at $150,000, a 7% increase over the 2009 target level of $140,000. Mr. Monahan's bonus target for 2010 was set at $125,000, a 25% increase over his 2009 bonus target of $100,000. In recommending the increase in Mr. Monahan's bonus target levels for 2010, the Chief Executive Officer considered compensation paid to chief financial officers in our reference group as well as employees in comparable positions at the Company's subsidiaries. Based on that review, the Chief Executive Officer and the Compensation Committee determined that Mr. Monahan's aggregate cash compensation potential remained below the reference group median and that it should be increased to a level more comparable to the median of the comparison group, with greater emphasis placed on the at-risk component.

20102012 Quantitative Goals:
(70% of Target Bonus Potential)

2010 Company Performance Goals
 Weighting 2010 Performance % of Target Bonus
Potential Awarded
 

•       $64.3 Million Currency-Adjusted Revenue Growth Target

  15%$139.5  217%

•       0.1% Gross Margin Improvement

  10% 1.1% 110%

•       0.5% Operating Margin Improvement

  15% 1.8% 180%

•       $0.09 Increase in Earnings Per Share, excluding acquisition charges

  10%$0.20  222%

•       $0.02 Reduction in Working Capital Ratio

  20%$0.01  50%
2012 Company Performance Goals
 Weighting 2012 Performance % of Target Bonus
Potential Earned
 

• $174.7 Million Currency-Adjusted Revenue
Growth Target

  20%$174.0  100%

• 0.8% Adjusted Gross Margin
Improvement

  10% 0.6% 75%

• 1.6% Adjusted Operating Margin
Improvement

  10% 0.3% 18%

• $0.12 Increase in Earnings Per Share,
excluding acquisition charges

  10%$0.01  8%

• $0.03 Reduction in Working Capital Ratio

  20%$0.02 Reduction  67%

Total

  
70

%
    
43

%

        Based on our financial results for 2010,2012, the Company exceeded foursubstantially achieved its currency-adjusted revenue goal, which represented 20% of Dr. Laukien's total cash incentive bonus potential, but did not fully meet or exceed any of the fiveremaining four quantitative goals, including the goals relating to revenue,adjusted gross profit margin improvement, adjusted operating margin improvement, andadjusted earnings per share. As shown in the tables above under the heading "2010 Quantitative Goals," these four goals together represented 50% of each executive officer's cash incentive bonus potential. However,share and working capital improvement. Although below targeted levels, the Company only achieved 50%did achieve 75% and 67% of the targeted improvement in the Company's adjusted gross margin and working capital ratio, respectively, which together accounted for 20%30% of each executive officer'sDr. Laukien's cash incentive bonus potential. However, primarily as a result of increased operating costs, only 18% of the targeted improvement in the Company's adjusted operating margin was realized. Additionally, the $0.01 increase in adjusted earnings per share fell significantly below the targeted $0.12 improvement. The Compensation Committee considered these mixed results and determined that the portion of bonus targets linked to the quantitative goals would be included in Dr. Laukien's bonus awardsaward at levels commensurate to our performance relative to each of those goals. Accordingly, the Compensation Committee approved awardsan award to Dr. Laukien totaling 156%62% of cash incentive targets linked to quantitative goals, to each of Dr. Frank Laukien, Mr. Knight and Mr. Monahanor $238,598, for relative achievement of the combined Company-wide quantitative financial performance goals in 2010. Total2012. This represents 43% of Dr. Laukien's total 2012 target bonus potential. Dr. Laukien's total cash incentive bonus payments to our executive officers for 2010potential also included amounts awarded for achievement of the following individual qualitative goals.

20102012 Individual Qualitative Goals:
(30% of Target Bonus Potential)


2010 Individual Qualitative Goals% of Target Bonus
Potential Awarded
Frank H. Laukien

•       Organizational development

15%

•       Strategic operational and financing initiatives

10%

William J. Knight

•       Organizational development


10

%

•       Strategic information technology and operational initiatives

18%

Brian P. Monahan

•       Organizational development


10

%

•       Strategic accounting and finance initiatives

18%
2012 Individual Qualitative Goals
 Weighting 2012 Performance % of Target Bonus
Potential Earned
 

• Improvement in performance of
Bruker CAM division

  10%Not achieved  0%

• Organizational development initiatives

  5%Fully achieved  5%

• Strategic operational initiatives

  15%Substantially Achieved  11.25%

Total

  
30

%
   
16.25

%

        In determining the amount of each named executive officer's total bonus award for 2010, the Compensation Committee also evaluated the officer's performance against his individual qualitative goals.

        The Compensation Committee considered Dr. Laukien's achievements in meeting his organizational development goals related to certain divisional management functions and the development and transition of certain key senior managers and determined that, as the goals had been fully achieved, Dr. Laukien should be awarded 100% of his target bonus linked to this goal.these goals. The Compensation Committee also considered progress made with respect to various strategic operational initiatives, including strengthening the compliance structure and financial initiativesimplementation of improved product development processes, and determined that Dr. Laukien should be awarded 67%75% of the target bonus associated with that goal.each of those goals based on substantial achievement. However, no award was made with respect to the goal relating to the Bruker CAM division as a result of the division's continued deterioration in performance in 2012. In recognition of his performance relative to these individual qualitative performance goals, the Compensation Committee awarded Dr. Laukien, in aggregate, 83%54% of the portion of his target cash incentive bonus attributable to qualitative goals, or $137,500. For 2010, including both$89,375.

        Based on Dr. Laukien's performance relative to his combined 2012 quantitative and qualitative factors,goals, Dr. Laukien was awardedearned a total cash incentive bonus of $702,728,$327,973, equal to approximately 128%60% of his total cash incentive target. However, in light of the internal investigation and ongoing compliance review relating to certain of the Company's subsidiaries operating in China, Dr. Laukien recommended to the Compensation Committee, and the Compensation Committee accepted, a voluntary reduction of $125,000 in his 2012 cash bonus award. Accordingly, Dr. Laukien received a total cash incentive bonus for 2012 of $202,973, representing 37% of his total target cash incentive bonus.bonus potential.


Charles F. Wagner, Jr., Executive Vice President and Chief Financial Officer

        In addition,June 2012, in connection with Mr. Wagner's employment as Chief Financial Officer, the Compensation Committee awardedapproved a 2012 cash incentive plan for Mr. Wagner that included the same relative mix of quantitative and qualitative goals established for Dr. Laukien, an additional discretionaryas well as the same set of quantitative goals. Accordingly, as with Dr. Laukien, the Compensation Committee determined that Mr. Wagner had earned 43% of his pro-rated target bonus linked to these quantitative goals, or $108,454.

        Mr. Wagner's total cash incentive bonus also included amounts awarded for performance relative to the following individual qualitative goals.

2012 Individual Qualitative Goals:
(30% of $50,000 for his role in the successful completion of two significant strategic acquisitions in 2010.Target Bonus Potential)

2012 Individual Qualitative Goals
 Weighting 2012 Performance % of Target Bonus Potential Earned 

• Implementation of various initiatives relating
to compliance matters

  10% Fully achieved  10%

• Development of finance organization

  10% Fully achieved  10%

• Financial systems initiatives

  10% Fully achieved  10%

Total

  
30

%
    
30

%

        The Compensation Committee considered Mr. Knight'sWagner's achievements in meeting his organizational developmentindividual qualitative goals relatedrelating to thecompliance matters, development of productionthe finance organization and logisticsprogress toward introduction of enhanced financial systems and determined that, as the goals had been fully achieved, Mr. KnightWagner should be awarded 100% of his pro-rated target bonus linked to this goal. Thethese goals, or $75,000.

        For 2012, Mr. Wagner was entitled to receive a minimum of $200,000, equal to 80% of his pro-rated target bonus level. Based on Mr. Wagner's performance relative to his combined 2012 quantitative and qualitative goals, Mr. Wagner earned a total cash incentive bonus of $183,454. Accordingly, Mr. Wagner received a total cash incentive bonus for 2012 of $200,000.

William J. Knight, Former Chief Financial Officer and Chief Operating Officer

        In March 2012, the Compensation Committee also considered progress madeapproved a 2012 cash incentive plan for Mr. Knight, then serving as Chief Financial Officer, which included the same relative mix of quantitative and qualitative goals established for Dr. Laukien, as well as the same set of quantitative goals. Mr. Knight ceased to serve as Chief Financial Officer in June 2012, and at that time assumed the position of President of Bruker Detection Corporation, a wholly-owned subsidiary of the Company. In this capacity, he is no longer serving as an executive officer of the Company.

        In connection with respecthis departure from the Chief Financial Officer position, Mr. Knight's cash incentive plan established in March 2012 was terminated and the Compensation Committee approved the following arrangements: a total CFO severance payment of $185,576, payable in three installments during the period commencing in July 2012 and ending in June 2014, subject to various strategic operational and financial initiatives, including the developmentcertain limitations relating to continued employment; annual cash compensation consisting of an information technology roadmapa base salary of $225,000 and an operational reviewannual target bonus of $75,000, in each case subject to proration for 2012; and a payment of $75,000 during July 2012, representing 50% of the target cash incentive bonus payable under the 2012 incentive plan established in March 2012 in connection with Mr. Knight's service as Chief Financial Officer. Under these arrangements, in addition to salary, Mr. Knight received a 2012 cash incentive award of $111,087, including $75,000 attributable to his service as Chief Financial Officer and $36,087


attributable to his performance as President of Bruker Detection Corporation, as well as $92,788 relating to the CFO severance payment.

Mark R. Munch, President, Bruker Nano, Inc. and Bruker MAT Group

        Upon Dr. Munch's election as an executive officer in March 2012, the Compensation Committee, at the recommendation of the Chief Executive Officer, reviewed and approved the following incentive compensation plan for Dr. Munch linked to the performance of the Bruker Nano Surfaces operating division. Under Dr. Munch's 2012 incentive plan, an initial eligible bonus pool amount was determined by multiplying Dr. Munch's target bonus of $198,000 by a percentage equal to the percentage achievement of the Company's production sites and product lines and determined that Mr. Knight should be



awarded 88%Bruker Nano Surfaces division relative to an adjusted operating income target of $46.8 million, equal to 5% growth relative to 2011, capped at 200% of the target bonus associatedamount, or $396,000. Based on 2012 operating results, 90% of the targeted adjusted operating income was achieved, resulting in a total eligible bonus pool of $178,115. Amounts earned with those goals. In recognitionrespect to each of Dr. Munch's quantitative goals, other than the threshold goal related to adjusted operating income improvement, are calculated based on percentage achievement of the target amount multiplied by the product of the applicable target weighting and the amount of the total eligible bonus pool.

2012 Quantitative Goals:
(70% of Target Bonus Potential)

2012 Bruker Nano Surfaces (BNS) Performance Goals
 Weighting 2012 Performance % of Target Bonus
Potential Earned
 

• 5% BNS Currency-Adjusted
Revenue Growth to
$187.1 million

  35%$184.1 million Revenue  98%

• 1.0% Adjusted Gross Margin
Improvement to 55.3%

  15%54.2% Gross Profit Margin  99%

• $0.016 Reduction in BNS
Working Capital Ratio to $0.273

  20%$0.30 Working Capital Ratio  91%

Total

  
70

%
   
61

%

        Based on performance of the Bruker Nano Surfaces division in 2012, the Compensation Committee approved an award to Dr. Munch totaling 87% of his potential cash incentive target amount linked to quantitative goals (96% of the portion of the eligible bonus pool attributable to quantitative goals), or $120,076. Additionally, Dr. Munch's total cash incentive bonus also included amounts awarded for achievement of individual qualitative goals relating to organizational and product development initiatives, representing 30% of target bonus potential. After consideration of Dr. Munch's performance relative to these individual qualitative performance goals, the Compensation Committee determined that Dr. Munch had fully or substantially achieved each of these goals, resulting in a bonus award equal to 82% of the portion of his target cash incentive bonus potential attributable to qualitative goals (92% of the portion of the eligible bonus pool attributable to qualitative goals), or $48,999. Based on Dr. Munch's performance relative to his combined 2012 quantitative and qualitative goals, Dr. Munch received a total cash incentive bonus of $169,075, equal to 85% of his total cash incentive target amount.

Burkhard Prause, President, Bruker Energy & Supercon Technologies, Inc. ("BEST")

        Upon Dr. Prause's election as an executive officer in March 2012, the Compensation Committee, at the recommendation of the Chief Executive Officer, reviewed and approved the following incentive compensation plan goals for Dr. Prause. Under Dr. Prause's 2012 incentive plan, awards for quantitative goals are calculated based on percentage achievement of targets, with no floor or ceiling.


2012 Quantitative Goals:
(95% of Target Bonus Potential)

2012 BEST Performance Goals
 Weighting 2012 Performance % of Target Bonus
Potential Earned
 

• Bruker EAS €71.9 Million Revenue Target

  20%66.4 Million  92%

• Bruker EAS Gross Margin of 18.4%

  15% 20.6% 112%

• BEST $136.0 Million Revenue Target

  30%$136.2 Million  100%

• BEST Gross Margin of 21.8%

  30% 31.4% 144%

Total

  
95

%
    
109

%

        Based on the strong performance of BEST in 2012, particularly with respect to improvements in gross margins, the Compensation Committee approved an award to Dr. Prause of €169,417, or approximately $229,560 based on a conversion rate of €1.00=$1.3550, the midpoint rate as of the date of determination of the award amount, representing 114% of cash incentive targets linked to quantitative goals. Additionally, Dr. Prause's total cash incentive bonus also included amounts awarded Mr. Knight,for achievement of individual qualitative goals relating to production improvement initiatives, representing 5% of target bonus potential. After consideration of Dr. Prause's performance relative to these goals, the Compensation Committee determined that Dr. Prause had partially achieved these goals, resulting in aggregate, 92%a bonus award of €3,904, or approximately $5,289, equal to 50% of the portion of his target cash incentive bonus attributable to qualitative goals, or $41,250. For 2010, including bothgoals. Based on Dr. Prause's performance relative to his combined 2012 quantitative and qualitative factors, Mr. Knight was awardedgoals, Dr. Prause received a total cash incentive bonus of $195,403,€173,321, or approximately $234,850, equal to approximately 130%111% of his total target cash incentive bonus.target. In addition,2012, Dr. Prause also received a discretionary bonus in the amount of €81,250, or approximately $104,479, in recognition of his extraordinary contributions leading to the receipt of a significant licensing contract.

Stephan Westermann, Executive Vice President–Order Execution, Production & Logistics of Bruker Scientific Instruments ("BSI") and Executive Vice President–Operations of Bruker BioSpin Group ("Bruker BioSpin")

        Upon Mr. Westermann's election as an executive officer in March 2012, the Compensation Committee, at the recommendation of the Chief Executive Officer, reviewed and approved the following incentive compensation plan goals for Mr. Westermann. Under Mr. Westermann's 2012 incentive plan, awards for quantitative goals are calculated based on percentage achievement of targets, with no floor or ceiling.

2012 Quantitative Goals:
(75% of Target Bonus Potential)

2012 Performance Goals
 Weighting 2012 Performance % of Target Bonus
Potential Earned
 

• $589.4 Million BSI Revenue

  16.7%$573.1 Million  97%

• Bruker BioSpin Gross Profit of $282.4 Million

  16.7%$261.2 Million  92%

• Bruker BioSpin Net Income of $86.5 Million

  16.6%$71.5 Million  83%

• 47.9% Bruker BioSpin Gross Profit Margin

  25.0% 45.6% 0 

Total

  
75

%
    
46

%

        Based on the performance of the BSI Segment and the Bruker BioSpin Group in 2012, including achievement of a substantial portion of targeted growth in revenues and gross profits, offset partially by a deterioration in Bruker BioSpin's gross profit margins, the Compensation Committee approved an award to Mr. Westermann of €66,542, or approximately $90,164 based on a conversion rate of €1.00=$1.3550, the midpoint rate as of the date of determination of the award amount. This represents 61% of the portion of Mr. Westermann's total cash incentive bonus potential linked to quantitative


goals. Additionally, Mr. Westermann's total cash incentive bonus included amounts awarded Mr. Knight an additional discretionary bonusfor achievement of $20,000 for his roleindividual qualitative goals relating to process and production improvement initiatives, as well as cost reduction initiatives, representing in the successful completionaggregate 25% of two significant strategic acquisitions in 2010.

        The Compensation Committee considered Mr. Monahan's achievements in meeting his organizational development goals related to the global finance organization and determined that Mr. Monahan should be awarded 100% of his target bonus linked to this goal. The Compensation Committee also considered progress made with respect to various strategic operational and financial initiatives, including the developmentpotential. After consideration of certain treasury and tax strategies and determined that Mr. Monahan should be awarded 88% of the target bonus associated with those goals. In recognition of hisWestermann's performance relative to these individual qualitative performance goals, the Compensation Committee awardeddetermined that Mr. Monahan, in aggregate, 92%Westermann had fully or substantially achieved these goals, with the exception of the goal related to cost reduction initiatives, which was not achieved. As a result, Mr. Westermann was granted a bonus award of €29,000, or approximately $39,295, equal to 80% of the portion of his target cash incentive bonus attributable to qualitative goals, or $34,375. For 2010, including bothgoals. Based on Mr. Westermann's performance relative to his combined 2012 quantitative and qualitative factors,goals, Mr. Monahan was awardedWestermann received a total cash incentive bonus of $162,836,€95,542, or approximately $129,459, equal to approximately 130%66% of his total target cash incentive bonus. In addition, the Compensation Committee awarded Mr. Monahan an additional discretionary bonus of $20,000 for his role in the successful completion of two significant strategic acquisitions in 2010.target.

20102012 Long-Term Incentive Awards

        During 2010,In August 2012, upon consideration of a variety of factors, including the individual responsibilities of each of our executive officers, our stock price, competitive market practices and outstanding equity awards held by our executive officers, the Compensation Committee did not award options orapproved long-term incentive awards to certain of our executive officers, including awards of 100,000 shares of restricted stock to anyDr. Laukien and 88,028 shares of restricted stock to Mr. Wagner, in each case valued at approximately $1,000,000 on the named executive officers.date the award was granted. Additionally, in August 2012 Dr. Prause was awarded options to purchase 55,000 shares of our common stock and Mr. Wagner was awarded options to purchase 5,000 shares of our common stock in connection with his service as a director of Bruker Energy & Supercon Technologies, Inc. In making the determination not to provide long-term incentive awards in 2010,March 2012, the Compensation Committee also awarded Mr. Knell options to purchase 35,000 shares of our common stock. All such awards are subject to time-based vesting.

2013 Compensation Determinations

        For fiscal 2013, the Compensation Committee approved a 23.8% salary increase, to $550,000 from $444,338, for our Chief Executive Officer. The Compensation Committee considered a numberthis adjustment appropriate in recognition of factors, including our stock price, outstanding equity awards,the Company's growth and increasing complexity, as well as the substantial awards made in November 2009 toCompensation Committee's understanding of competitive market levels for executives with similar experience and responsibilities. Salaries approved by the Compensation Committee for each of our named executive officers for 2013 are as follows:

 
 2012 Base Salary 2013 Base Salary Percentage Increase 

Frank H. Laukien

 $444,338 $550,000  23.8%

Charles F. Wagner, Jr. 

 $475,000 $491,000  3.4%

Mark R. Munch

 $380,000 $380,000  0.0%

Burkhard Prause

 183,700 190,000  3.3%

Stephan Westermann

 168,000 208,000  23.8%

William J. Knight

 $225,000 $225,000  0.0%

        Mr. Westermann's salary increase reflects a shift in his compensation mix for 2013 toward a greater emphasis on salary relative to incentive-based elements, consistent with other executive officers in similar positions of responsibility. 2013 base salaries for Mr. Knight and Dr. Munch are unchanged as the Compensation Committee had reviewed and approved salaries for Mr. Monahan upon their promotionsKnight in June 2012 and Dr. Munch in July 2012 and has determined that the levels established at that time continued to their current positions.be appropriate for 2013.

Executive Benefits

        In 2010,2012, our named executive officers were eligible for the same level and offering of benefits made available to other employees, including the Company's 401(k) plan and welfare benefit programs.


2011 Compensation Determinations

        For fiscal 2011, the Compensation Committee approved a 2% salary increase for each of the namedWe generally do not provide additional perquisites to our executive officers. In addition, the Compensation Committee considered reference group bonus information and other market reference sources, and determined that the target bonus levels of our Chief Executive Officer and Chief Operating Officer were within a reasonable and competitive range relative to their responsibilities. As a result, the target bonus levels of our Chief Executive Officer and Chief Operating Officer were not changed for 2011. The 2011 target bonus level for our Chief Financial Officer, however, was increased from $125,000 to $130,000,However, Dr. Munch is provided an automobile allowance based on competitive market levels.the nature of his responsibilities and Dr. Prause is provided a leased vehicle in accordance with local custom.

Employment Contracts, Termination of Employment and Change in Control Arrangements

        AlthoughOn June 5, 2012, the Company does not currently have an employmententered into a letter agreement with anyMr. Wagner which sets forth certain terms of its executive officers, it did issue a letter offeringMr. Wagner's employment to William J. Knight, who now serves as ourExecutive Vice President and Chief Operating Officer.Financial Officer of the Company. Under the terms of the offer letter agreement, Mr. Wagner's target cash compensation will include the following elements: (i) an annual base salary of $475,000; (ii) a 2012 cash incentive bonus plan target of $500,000; and (iii) other cash compensation, including benefits, of $25,000, in each case subject to proration. The letter agreement further provides that Mr. Wagner will receive an annual equity award with a value of $1,000,000 pursuant to the Company's 2010 Incentive Compensation Plan. Upon approval of the Compensation Committee, the first such equity award was granted in the form of 88,028 shares of restricted common stock in August 2012. The restricted stock is subject to time-based vesting. During the term of his employment, Mr. Wagner will be eligible to participate in all customary employee benefit plans or programs of the Company generally available to the Company's employees and/or executive officers.

        Additionally, the letter agreement provides that Mr. Wagner's employment with the Company is at will and may be terminated by either Mr. Wagner or the Company at any time with or without notice and for any or no reason or cause. Mr. Wagner will be entitled to a lump sum severance payment equal to six months of his then current base salary under certain conditions, including (i) in the event there is a change in the voting control of the Company and his employment is terminated, voluntarily or involuntarily, within six months after such change of control or (ii) in the event Mr. Wagner's employment is terminated at any time without cause. Under the terms of the letter agreement, Mr. Wagner may not agree to work for any company that designs, makes or sells non-clinical magnetic resonance instrumentation or mass spectrometry instrumentation for a period of six months following resignation or termination of his employment by the Company.

        In connection with Mr. Knight's departure from the role of Chief Financial Officer and assumption of responsibilities as Executive Vice President, President of Bruker Detection Corporation and US General Manager of the Company's Bruker Detection division, we entered into a letter agreement with Mr. Knight on June 5, 2012 regarding the term of his continued employment for a period not to exceed three years. Pursuant to the letter agreement, Mr. Knight is entitled to receive the following compensation: (i) a continuationtotal CFO severance payment of $185,576 in three installments during the period commencing in July 2012 and ending in June 2014, subject to certain limitations relating to continued employment; (ii) annual cash compensation consisting of a base salary of $225,000 and benefitsan annual target bonus of $75,000, in each case subject to proration for 2012; and (iii) a periodpayment of three months$75,000 during July 2012, representing 50% of the target cash incentive bonus payable under the 2012 incentive plan previously established for Mr. Knight in the eventconnection with his service as Chief Financial Officer. The letter agreement also provides that no additional equity incentive grants will be awarded to Mr. Knight upon assumption of his new responsibilities. Mr. Knight's employment is at will and may be terminated within twelve months of a sale of all or substantially all of our business to a third party. The offer letter also



provides for anticipated annual grants of options to purchase 50,000 shares of our common stock, subject to the approval of the Compensation Committee.

        The Company has agreed to provide severance payments to each ofby either Mr. Knight or the Company at any time with or without notice and Mr. Monahan equal to six months' salary in the event of termination of employment withoutfor any or no reason or cause.

        Under the terms of the awards of options and restricted common stock granted under the 2010 Incentive Compensation Plan, unvested amounts are forfeited if the grantee's employment or business relationship with our company is terminated for any reason, other than in the event of death or disability. The board of directors does, however, have the power and the right to accelerate vesting of any and all unvested amounts in the event of a change in control of Bruker Corporation.


Section 162(m) Limitations

        Section 162(m) of the U.S. Internal Revenue Code limits the tax deductibility by a corporation of compensation in excess of $1,000,000 paid to the Chief Executive Officer and any other of its four most highly compensated executive officers. However, compensation which qualifies as "performance-based" is excluded from the $1,000,000 limit if, among other requirements, the compensation is payable only upon attainment of pre-established, objective performance goals under a plan approved by stockholders.

        The Compensation Committee does not presently expect total cash compensation payable for salaries to exceed the $1,000,000 limit for any individual executive. Having considered the requirements of Section 162(m), the Compensation Committee believes that stock option grants to date meet the requirement that such grants be "performance-based" and are, therefore, exempt from the limitations on deductibility.

        The Compensation Committee and management consider the accounting and tax effects of various compensation elements when designing our annual incentive and equity compensation plans and making other compensation decisions. Although we design our plans and programs to be tax-efficient and to minimize compensation expense, these considerations are secondary to meeting the overall objectives of the executive compensation program. To the extent consistent with our executive compensation program and our executive officers' employment agreements, if any, we have designed our executive compensation program to be performance-based and also to comply with requirements for tax deductibility where feasible.

        The Compensation Committee will continue to monitor the compensation levels potentially payable under our cash compensation programs, but intends to retain the flexibility necessary to provide total cash compensation in line with competitive practice, our compensation philosophy and our best interests.

Other Benefit Plans

        In October 2009, the Board of Directors of BEST adopted the Bruker Energy & Supercon Technologies, Inc. 2009 Stock Option Plan, (the "BEST Plan").or the BEST Plan. The BEST Plan provides for the issuance of up to 1,600,000 shares of BEST common stock in connection with awards under the plan. The BEST Plan allows a committee of the BEST board of directors to grant incentive stock options and non-qualified stock options to key employees and directors of the Company. The size of each grant is determined by the value of the BEST stock and BEST stock options at the time, the likely growth in that value and the importance of the individual to growing the value of the Company in the future. The BEST Plan is tied exclusively to increases in BEST's estimated value regardless of the Company's performance as a whole. As of December 31, 2010,2012, 800,000 incentive stock options and non-qualified stock options had been awarded with vesting periods of three to five years. As a director of BEST, Dr. Frank Laukien participatesand Mr. Wagner participate in the BEST Plan and on October 1, 2009, was awarded an optionPlan. Dr. Laukien holds options to purchase 10,000 shares of BEST, atwhich have an exercise price equalof $3.50 per share and expire October 1, 2019. Mr. Wagner holds options to the fair market valuepurchase 10,000 shares of BEST atgranted on July 1, 2010 with an exercise price of $10.00 per share and an expiration date of July 1, 2020. 6,667 of these options are vested and exercisable and the timeremaining 3,333 options will vest on July 1, 2013. Additionally, Dr. Prause, as an employee and also as a director of grant, subjectBEST, participates in the BEST Plan. Dr. Prause holds options to three-year vesting.purchase 150,000 shares of BEST, which options were fully vested as of December 31, 2012. The BEST options have an exercise price of $3.50 per share and expire October 1, 2019.



COMPENSATION COMMITTEE REPORT

        The Compensation Committee has reviewed and discussed with management the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K, promulgated under the Securities Act of 1933, as amended. Based on such review and discussions, the Compensation Committee recommended to the board of directors that the Compensation Discussion and Analysis be included in this Proxy Statement on Schedule 14A.

        Submitted by the Compensation Committee of Bruker Corporation's Board of Directors.

  Richard D. Kniss, Chairman
Wolf-Dieter Emmerich
Stephen W. Fesik


COMPENSATION COMMITTEE INTERLOCKS
AND INSIDER PARTICIPATION

        Mr. Kniss and Drs. Emmerich and Fesik serve as members of the Compensation Committee. Mr. Kniss and Drs. Emmerich and Fesik were not officers or employees of the Company or any of its subsidiaries during fiscal year 2010.2012. None of our executive officers serves as a member of the board of directors or compensation committee of any entity that has one or more of its executive officers serving as a member of our Compensation Committee. In addition, none of our executive officers serves as a member of the compensation committee of any entity that has one or more of its executive officers serving as a member of our Board of Directors.



SUMMARY OF EXECUTIVE COMPENSATION

        The following table summarizes the compensation earned by theour President, Chief Executive Officer and Chairman, persons who served as our Chief Financial Officer during 2012 and the Company's othernext three most highly compensated executive officers in fiscal 2012 (the "named executive officers") for the years ended December 31, 2010, 20092012, 2011 and 2008.2010.


20102012 Summary Compensation Table

Name and Principal Position
 Year Salary Bonus Stock
Awards(1)
 Option
Awards(2)
 Non-Equity
Incentive
Plan Awards
 All Other
Compensation
 Total 

Frank H. Laukien

  2012 $444,129   $1,206,000   $202,973 $7,500(3)$1,860,602 

Chairman, President and

  2011 $433,337     $112,950 $338,463 $7,350(3)$892,100 

Chief Executive Officer

  2010 $423,366 $50,000(4)    $702,728 $7,350(3)$1,183,444 

William J. Knight

  
2012
 
$

300,713
  
  
  
 
$

111,087
 
$

100,288

(6)

$

512,088
 

Former Chief Financial

  2011 $361,964     $104,400 $92,308 $8,250(6)$566,922 

Officer and Former Chief Operating Officer(5)

  2010 $355,000 $20,000(4)    $195,403 $8,250(6)$578,653 

Charles F. Wagner, Jr. 

  
2012
 
$

275,865

(8)
 
  
999,998
 
$

82,720

(9)

$

200,000
 
$

1,005

(10)

$

1,564,138
 

Executive Vice President and Chief Financial Officer(7)

                         

Mark Munch

  
2012
 
$

345,370
  
  
  
 
$

169,075
 
$

15,900

(12)

$

530,345
 

President, Bruker Nano, Inc.(11)

                         

Burkhard Prause

  
2012
 
$

236,220
 
$

104,479

(14)
 
 
$

371,950
 
$

234,850
 
$

20,414

(15)

$

967,913
 

President, Bruker
Energy & Supercon
Technologies, Inc.(11)(13)

                         

Stephan Westermann

  
2012
 
$

223,637
  
  
  
 
$

129,459
 
$

13,363

(16)

$

366,459
 

Executive Vice President—Order Execution, Production & Logistics of Bruker Scientific Instruments and Executive Vice President—Operations of Bruker BioSpin Group(11)(13)

                         

Name and Principal Position
 Year Salary Bonus Non-Equity
Incentive
Plan Awards
 Option
Awards(1)
 All Other
Compensation
 Total 

Frank H. Laukien

  2010 $423,366 $50,000(2)$702,728   $7,350(3)$1,183,444 
 

Chairman, President and

  2009 $318,750   $459,048 $25,200(4)$6,750(3)$809,748 
 

Chief Executive Officer

  2008 $425,000   $404,239 $817,000 $6,750(3)$1,652,989 

William J. Knight

  
2010
 
$

355,000
 
$

20,000

(2)

$

195,403
  
 
$

8,250

(6)

$

578,653
 
 

Chief Operating

  2009 $297,277   $132,349 $344,000 $6,750(6)$780,376 
 

Officer(5)

  2008 $320,000 $50,000(7)$42,397 $408,500 $6,750(6)$827,647 

Brian P. Monahan

  
2010
 
$

275,000
 
$

20,000

(2)

$

162,836
  
 
$

7,350

(9)

$

465,186
 
 

Chief Financial

  2009 $193,154   $168,818 $688,000 $6,750(9)$1,056,722 
 

Officer(8)

  2008 $200,000 $20,000(7)$24,099 $122,550 $6,750(9)$373,399 

(1)
The amounts in this column reflect the grant date fair value of awards ofrestricted stock options,awards, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718. Assumptions used in the calculations of these amounts may be found in Note 2 to our 20102012 audited financial statements included in the Company's Annual Report on Form 10-K filed with the SEC on March 1, 2011.February 28, 2013. The actual amount realized by the directornamed executive officer will likely vary based on a number of factors, including our performance, stock price fluctuations and applicable vesting.

(2)
Dr. Laukien receivedThe amounts in this column reflect the grant date fair value of stock option awards, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718. Assumptions used in the calculations of these amounts may be found in Note 2 to our 2012 audited financial statements included in the Company's Annual Report on Form 10-K filed with the SEC on February 28, 2013. The actual amount realized by the named executive officer will likely vary based on a special bonusnumber of $50,000factors, including our performance, stock price fluctuations and Mr. Knight and Mr. Monahan each received a special bonus of $20,000 in connection with their contributions to the acquisitions of Veeco Metrology Inc., a scanning probe microscopy and optical industrial metrology business and of certain assets and liabilities in Varian, Inc.'s inductively coupled plasma mass spectrometry instruments business, laboratory gas chromatography instruments business, and gas chromatography triple-quadrupole mass spectrometry instruments business.applicable vesting.

(3)
Amount represents a matching contribution made by the Company to the 401(k) plan for the benefit of Dr. Frank Laukien.

(4)
Amount reflects the grant date fair valueDr. Laukien received a special bonus of an option to purchase 10,000 shares$50,000 and Mr. Knight received a special bonus of BEST granted on October 1, 2009 to Dr. Frank Laukien as a director of BEST pursuant$20,000 in 2010 in connection with their contributions to the BEST Plan.acquisition of Veeco Metrology Inc.


(5)
Mr. Knight served as Chief Financial Officer throughout 2009. In November 2009,from June 2011 to July 2012 and served as Chief Operating Officer from February 2010 to February 2012. Mr. Knight was namedalso Chief OperatingFinancial Officer effective February 1,from October 2004 through January 2010.

(6)
Amount represents a matching contribution made by the Company to the 401(k) plan for the benefit of Mr. Knight. In addition, the amount reported for 2012 includes $92,788 paid to Mr. Knight in connection with his departure from the role of Chief Financial Officer.

(7)
Mr. Knight received a special bonus of $50,000 and Mr. Monahan received a special bonus of $20,000Wagner joined the Company as Chief Financial Officer in connection with their contributions to the Bruker BioSpin Group acquisition.July 2012.

(8)
DuringIncludes payments totaling $32,000 for service on the first quarterCompany's board of 2009, Mr. Monahan was promoted from Corporate Controller todirectors and $15,500 for service on the positionsBEST board of Vice President of Finance and Chief Accounting Officer. In November 2009, Mr. Monahan was named Chief Financial Officer, effective February 1, 2010.directors.

(9)
Amount represents the grant date fair value of options granted to Mr. Wagner as a director of the Company and as a director of BEST.

(10)
Amount represents a matching contribution made by the Company to the 401(k) plan for the benefit of Mr. Monahan.Wagner.

(11)
The named executive officer was first appointed an executive officer of the Company in fiscal 2012. Accordingly, compensation data is presented only for fiscal 2012.

(12)
Amount represents a matching contribution made by the Company to the 401(k) plan for the benefit of Dr. Munch and an automobile allowance.

(13)
The amounts reflected for fiscal 2012 compensation, other than amounts reported under the heading "Option Awards" and "Non-Equity Incentive Plan Awards," are based on actual payments in euros converted to U.S. dollars at a conversion rate of €1.00 = $1.2859, which represents the 2012 average midpoint rate as published on www.oanda.com. The amount reflected under the heading "Non-Equity Incentive Plan Awards" is based on the amount approved by the Compensation Committee on February 7, 2013, converted from euros to U.S. dollars at a conversion rate of €1.00 = $1.3550, which was the midpoint rate as published on www.oanda.com on the date of approval.

(14)
Amount represents a special bonus in the amount of 81,250 euros, or $104,479, in connection with his contributions to the award of a significant licensing contract.

(15)
Amount represents 15,275 euros, or $19,642, for a company leased automobile and 600 euros, or $772, for the use of certain inventions.

(16)
Amount represents 10,392 euros, or $13,363, for a company leased automobile.


20102012 Grants of Plan-Based Awards

        The following table sets forth certain information with respect to individual grants of plan-based awards to the named executive officers during the fiscal year ended December 31, 2010.2012.

 
  
 Estimated Future Payouts Under
Non-Equity Incentive Plan
Awards
 All Other
Stock
Awards:
Number
of Shares
of Stock
or Units (#)
 All Other
Option
Awards:
Number of
Securities
Underlying
Options (#)
  
 Grant Date
Fair Value
of Stock
and
Option
Awards
($)(2)
 
 
  
 Exercise or
Base Price
of Option
Awards
($/SH)(2)
 
Name
 Grant
Date
 Threshold
($)(1)
 Target
($)(1)
 Maximum
($)(1)
 

Frank H. Laukien

     0  550,000               

  8/13/2012           100,000        1,206,000 

William J. Knight

     0  112,500               

Charles F. Wagner, Jr. 

     200,000  250,000               

  1/5/2012              6,000  12.77  41,820 

  8/2/2012           88,028        999,998 

  8/13/2012              5,000  12.06  45,450 

Mark R. Munch

     0  198,000               

Burkhard Prause

     0  200,600               

  8/13/2012              5,000  12.06  45,450 

  8/13/2012              50,000(3) 12.06  326,500 

Stephan Westermann

     0  186,456               

 
 Estimated Future Payouts Under
Non-Equity Incentive Plan Awards
 
Name
 Threshold
($)(1)
 Target
($)
 Maximum
($)(1)
 

Frank H. Laukien

   $550,000   

William J. Knight

   $150,000   

Brian P. Monahan

   $125,000   

(1)
Represents estimated possible payouts on the grant date for annual cash incentive bonus awards granted for 2012 performance under the 2012 cash incentive bonus plans of our named executive officers. There are no thresholds or maximumsmaximum payouts specified under the named executive officer'sofficers' cash incentive targets.plans. The amounts reflected for Dr. Prause and Mr. Westermann, which were based in local currency, are converted from euros to U.S. dollars at a conversion rate of €1.00 = $1.2859, which represents the 2012 average midpoint rate as published on www.oanda.com.

(2)
Represents the grant date fair value of restricted stock and stock option awards granted under the Company's 2010 Incentive Compensation Plan, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718. Assumptions used in the calculations of these amounts may be found in Note 2 to our 2012 audited financial statements included in the Company's Annual Report on Form 10-K filed with the SEC on February 28, 2013. Unless otherwise noted, the option awards vest in equal annual installments on the first, second and third anniversary of the grant date. The options are exercisable upon vesting at a price equal to the closing price of our common stock on the date of the grant and expire on the ten year anniversary of the grant date. The restricted awards to Dr. Laukien vests in equal annual installments on the first, second, third, fourth and fifth anniversary of the grant date. The restricted stock award to Mr. Wagner vests in equal annual installments on the first, second, third and fourth anniversary of the grant date.

(3)
One-fifth of these options vest on each of August 13, 2012, 2013, 2014, 2015 and 2016.


Outstanding Equity Awards Atat December 31, 20102012

        The following table provides information concerning unexercised options, stock that has not vested, and equity incentive plan awards for each named executive officer outstanding as of the end of our most recently completed fiscal year. Each outstanding award is represented by a separate row which indicates the number of securities underlying the award, including awards that have been transferred other than for value (if any).

        For option awards, the table discloses the exercise price and the expiration date. For stock awards, the table provides the total number of shares of stock that have not vested and the aggregate market value of shares of stock that have not vested.

        We computed the market value of stock awards

 
 Option Awards Stock Awards(1) 
Name
 Number of
Securities
Underlying
Unexercised
Options
Exercisable
 Number of
Securities
Underlying
Unexercised
Options
Unexercisable
 Option
Exercise
Price
 Option
Expiration
Date
 Number of
Shares of Stock
That Have Not
Vested
 Market Value of
Shares of Stock
That Have Not
Vested
 

Frank H. Laukien(2)

              100,000(3)$1,524,000 

  75,000   $13.21  05/07/13     

  3,750  11,250(4)$13.805  09/09/16       
                  

  78,750  11,250             
                  

William J. Knight

  
125,000
  
 
$

3.16
  
10/25/14
  
  
 

  50,000   $7.95  08/01/17     

  40,000  10,000(5)$12.01  05/07/18       

  30,000  20,000(6)$11.10  11/05/19       

  3,000  12,000(7)$12.55  09/09/21       
                  

  248,000  42,000             
                  

Charles F. Wagner, Jr.(8)

              
88,028

(9)

$

1,341,547
 

  1,980  1,020(10)$13.52  08/10/20       

  1,980  4,020(11)$16.09  01/05/21       

    6,000(12)$12.77  01/05/22       

    5,000(13)$12.06  08/13/22       
                  

  3,960  16,040             
                  

Mark R. Munch

  
30,000
  
45,000

(14)

$

14.80
  
11/01/20
       
                  

  30,000  45,000             
                  

Burkhard Prause(15)

  
  
5,000

(13)

$

12.06
  
08/13/22
       

  10,000  40,000(16)$12.06  08/13/22       
                  

  10,000  45,000             
                  

Stephan Westermann

  
30,000
  
 
$

7.95
  
08/01/17
       

  32,000  8,000(5)$12.01  05/07/18       

  4,000  6,000(14)$14.80  11/01/20       

  3,500  14,000(17)$12.73  08/19/21       
                  

  69,500  28,000             
                  

(1)
The amounts in this column were calculated by multiplying $15.24, the closing market price of our common stock at the end of the most recently completed fiscal yearon December 31, 2012, by the number of shares or units of stock or the amount of equity incentive plan awards, respectively.

unvested shares.


Outstanding Equity Awards at December 31, 2010

 
 Option Awards Stock Awards 
Name
 Number of
Securities
Underlying
Unexercised
Options
Exercisable
 Number of
Securities
Underlying
Unexercised
Options
Unexercisable
 Option
Exercise
Price
 Option
Expiration
Date
 Number of
Shares of Stock
That Have Not
Vested
 Market Value of
Shares of Stock
That Have Not
Vested
 

Frank H. Laukien(1)

  50,000  25,000(3)$8.75  08/01/12  6,650(2)$110,390 

  50,000  50,000(4)$13.21  05/07/13       
                  

  100,000  75,000             
                  

William J. Knight

  
125,000
    
$

3.16
  
10/25/14
  
1,670

(2)

$

27,722
 

  30,000  20,000(5)$7.95  08/01/17       

  20,000  30,000(6)$12.01  05/07/18       

  10,000  40,000(7)$11.10  11/05/19       
                  

  185,000  90,000             
                  

Brian P. Monahan

  
2,500
    
$

5.28
  
04/26/14
  
1,000

(2)

$

16,600
 

  5,250    $4.87  06/30/14       

  36,000  24,000(5)$7.95  08/01/17       

  6,000  9,000(6)$12.01  05/07/18       

  20,000  80,000(7)$11.10  11/05/19       
                  

  69,750  113,000             
                  

(1)(2)
In addition to the awards reported for equity securities of Bruker Corporation, Dr. Frank Laukien held options to purchase 10,000 shares of BEST, of which options to purchase 3,333 shares were exercisable and options to purchase 6,667 shares were unexercisablefully vested as of December 31, 2010.2012. The BEST options have an exercise price of $3.00$3.50 per share vest in three annual installments commencing on October 1, 2010, and expire October 1, 2019.

(2)(3)
SharesOne-fifth of the shares of restricted stock vest on each of on each of August 13, 2013, 2014, 2015, 2016 and 2017.

(4)
One-fourth of these options vest on each of the anniversaryfirst, second, third and fourth anniversaries of the grant date, beginning on September 9, 2012.

(5)
One-fifth of these options vest on each of the first, second, third, fourth and fifth anniversaries of the grant date, beginning May 7, 2009.

(6)
One-fifth of these options vest on each of the first, second, third, fourth and fifth anniversaries of the grant date, beginning November 5, 2010.

(7)
One-fifth of these options vest on each of the first, second, third, fourth and fifth anniversaries of the grant date, beginning September 9, 2012.

(8)
In addition to the awards reported for equity securities of Bruker Corporation, Mr. Wagner held options to purchase 10,000 shares of BEST granted on July 1, 2010 with an exercise price of $10.00 per share and expiration date of July 1, 2020. As of December 31, 2012, 6,667 of these options were vested and exercisable and the remaining 3,333 options will vest on July 1, 2013.

(9)
One-fourth of the shares of restricted stock vest on each of on each of August 2, 2013, 2014, 2015 and 2016.

(10)
One-third of these options vest on each of the first, second and third anniversaries of the grant date, beginning on August 10, 2011.

(11)
One-third of these options vest on each of the first, second and third anniversaries of the grant date, beginning on January 5, 2007.2012.

(3)(12)
OptionsOne-third of these options vest on each of the first, second and third anniversaries of the grant date, beginning on January 5, 2013.

(13)
One-third of these options vest on each of the first, second and third anniversaries of the grant date, beginning on August 13, 2013.

(14)
One-fifth of these options vest on each of the first, second, third, fourth and fifth anniversaries of the grant date, beginning on November 1, 2010.

(15)
In addition to the awards reported for equity securities of Bruker Corporation, Dr. Prause held options to purchase 150,000 shares of BEST, which options were fully vested as of December 31, 2012. The BEST options have an exercise price of $3.50 per share and expire October 1, 2019.

(16)
10,000 options vested on the grant date and the remaining 40,000 vest in four equal annual installments on the anniversary of the grant date, beginning on August 1, 2008.13, 2013.

(4)(17)
OptionsOne-fifth of these options vest in four equal annual installments on each of the anniversaryfirst, second, third, fourth and fifth anniversaries of the grant date, beginning May 7, 2009.

(5)
Options vest in five equal annual installments on the anniversary of the grant date, beginning August 1, 2008.

(6)
Options vest in five equal annual installments on the anniversary of the grant date, beginning May 7, 2009.

(7)
Options vest in five equal annual installments on the anniversary of the grant date, beginning November 5, 2010.19, 2012.


20102012 Option Exercises and Stock Vested

        The following table provides information regarding vesting of restrictedoption exercises by the named executive officers during 2012. No stock awards for eachheld by any of our named executive officerofficers vested during fiscal 2010. These restricted stock awards were granted in prior fiscal years and are not related to performance in fiscal 2010.2012.

 
 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
($)
 

Frank H. Laukien

  100,000 $615,000     

William J. Knight

         

Charles F. Wagner, Jr. 

         

Mark R. Munch

         

Burkhard Prause

         

Stephan Westermann

         

 
 Stock Awards 
Name
 Number of Shares
Acquired on Vesting
(#) (1)
 Value Realized
on Vesting
($) (2)
 

Frank H. Laukien

  6,650 $82,992 

William J. Knight

  1,670 $20,842 

Brian P. Monahan

  1,000 $12,480 

(1)
Represents the numberdifference between the exercise price of shares of restricted stock that vested during fiscal 2010. These shares were granted in January 2006the options exercised and vested in January 2010.

(2)
Represents the number of shares vested multiplied by the closing price of Bruker Corporation common stock on the NASDAQ Global Select Market as of the vesting date.date of exercise.


RELATED PERSONS TRANSACTIONS

Procedures for Approval of Transactions with Related Persons

        All transactions with related parties in excess of $50,000 are reviewed and pre-approved. Our Audit Committee, which is ultimately responsible for approving related party transactions, pre-approves such transactions involving amounts exceeding $500,000. The Audit Committee has delegated authority to the Chief Financial Officer and Corporate ControllerChief Accounting Officer to review and pre-approve all related party transactions, such as leasing, distribution, sales and purchasing activities, involving amounts from $50,000 to $500,000. A related party transaction will be approved only if it is determined upon review that the transaction is in the best interests of the Company. If the transaction involves a director, that director will be recused from all discussions and decisions about the transaction. In considering the transaction, the executive officer or the committee, as appropriate, will consider all relevant factors, including as applicable:

        Typically every quarter, management reviews with the Audit Committee all related party transactions entered into in the preceding quarter, including those the committee did not pre-approve. This review consists of a memorandum summarizing the information described above with respect to the transactions, and is followed by a telephonic or in-person meeting between the Audit Committee and management.

Transactions with Related Persons

        Under two lease agreements, Bruker BioSpin Corporation rents laboratory, manufacturing and office space from trusts controlled by certain Laukien family members, including Dr. Frank Laukien. During 2010,2012, Dr. Frank Laukien was paid $332,821$295,691 as a beneficiary of the trusts. The lease terms were equal to the estimated fair market value of the rentals.


        Dr. Dirk Laukien, a director and Senior Scientific Fellow of the Company also serves as Senior Scientific Fellow on a part-time basis. In 2010, Dr. Dirk Laukienuntil July 10, 2012, was paid aggregate cash compensation of $83,100$59,925 in 2012 for his services as Senior Scientific Fellow. Our Bruker Optics subsidiary rents various office space from Dr. Dirk Laukien under lease agreements under which Dr. Dirk Laukien was paid $904,740$1,164,940 in 2010, which was equal to the estimated fair market value.2012. Under two lease agreements, Bruker BioSpin Corporation rents laboratory, manufacturing and office space from trusts controlled by certain Laukien family members, including Dr. Dirk Laukien. During 2010,2012, Dr. Dirk Laukien was paid $322,821$295,691 as a beneficiary of the trusts. The lease terms were equal to the estimated fair market value of the rentals. Bruker BioSpin Corporation also rents office space from Dr. Dirk Laukien for which he was paid $152,072 in 2010. The lease terms were equal to the estimated fair market value of the rental. Dr. Dirk Laukien, Isolde Laukien-Kleiner and Joerg Laukienis also are partiesa party to a lease agreement with Bruker BioSpin AG under which Bruker BioSpin AG rents certain office space. During 2010,2012, Dr. Dirk Laukien was paid $106,967$119,086 under that agreement. The leasePayments under the terms of each of the leases referenced above were equal to the estimated fair market value of the rentals.respective rental.

        Joerg C. Laukien, a director of the Company, is also the Chief Operating Officerserves in a management role at various German subsidiaries of the Bruker BioSpin Group.Corporation and is Executive Chairman of Bruker BioSpin Corporation. Joerg Laukien also serves as a director and President of Bruker BioSpin MRI, Inc., Managing Director of Bruker BioSpin MRI GmbH Executive Chairman of Bruker BioSpin Corporation and, until April 2013, as a director of BEST. In addition, Joerg Laukien served as Managing Director of Bruker Elektronik GmbH until its merger with Bruker BioSpin GmbH in 2010. During 2010,2012, Joerg Laukien earned aggregate cash compensation of 329,942 Euros (approximately $396,060) from various European Bruker BioSpin companies220,639 euros in salary and 190,183 euros in bonus (a total salary and bonus of approximately $528,276) and was also provided the use of an automobile valued at $14,190.$13,138. Joerg Laukien is also a party to a lease agreement with Bruker BioSpin AG, under which Bruker BioSpin AG rents certain office space. During 2012, Joerg Laukien was paid $119,086 under that agreement. Payments under the lease were equal to the estimated fair market value of the rental.


        Isolde Laukien-Kleiner is the stepmother of Dr. Frank Laukien and Mr. Joerg Laukien and the mother of Dr. Dirk Laukien. With Dr. Dirk Laukien and Isolde Laukien-Kleiner, Joerg Laukien, alsoMs. Laukien-Kleiner is a party to a lease agreement with Bruker BioSpin AG under which Bruker BioSpin AG rents certain office space. During 2010, Joerg Laukien was paid $106,967 under that agreement. The lease terms were equal to the estimated fair market value of the rentals.

        Isolde Laukien-Kleiner, the stepmother of Dr. Frank Laukien and Mr. Joerg Laukien and the mother of Dr. Dirk Laukien, was formerly the CEO of Bruker Physik GmbH and also served later as a consultant to Bruker Physik GmbH. Mrs. Laukien-Kleiner terminated her consulting relationship with Bruker Physik in 2007. Under an agreement with Bruker Physik, Mrs. Laukien-Kleiner continued to receive certain benefits for a period of three years following her resignation. Mrs. Laukien-Kleiner is entitled to monthly pension payments of approximately 13,000 Euros, or 156,000 Euros annually (approximately $208,000), subject to annual periodic adjustments. Dr. Dirk Laukien, Isolde Laukien-Kleiner and Joerg Laukien are parties to a lease agreement with Bruker BioSpin AG under which Bruker BioSpin AG rents certain office space. During 2010, Isolde2012, Ms. Laukien-Kleiner was paid $213,934$238,171 under that agreement. The lease terms were equal to the estimated fair market value of the rentals.

Mrs. Laukien-Kleiner is party to an additional lease agreement with Bruker BioSpin AG under which Bruker BioSpin AG rents certain office space. During 2010, Mrs.2012, Ms. Laukien-Kleiner was paid $208,920$232,589 under that agreement. The leasePayments under the terms of each of the leases referenced above were equal to the estimated fair market value of the rentals.

        Dr. Tony W. Keller, a director of the Company, is also vice-chairman of the board of Bruker BioSpin AG, president of the board of Bruker BioSpin Invest AG, and a director of BEST. Dr. Keller also serves as honorary chairman of the Bruker BioSpin Group. During 2010, Dr. Keller earned cash compensation of $197,670 for his service to the Bruker BioSpin Group. Dr. Keller elected to defer payment of $115,075 of this cash compensation until 2011. Dr. Keller was also provided the use of an automobile valued at $11,655.respective rental.

        Richard M. Stein, a director of the Company, is a partner of Nixon Peabody LLP, a law firm which has been retained by the Company and certain of its affiliates for over five years. Amounts paid to Nixon Peabody LLP for services provided to the Company and its affiliates in 20102012 totaled $2.9$2.4 million.



Mr. Stein has also served as the secretary for each of the Company, Bruker BioSpin Corporation, Bruker AXS, Bruker Daltonics, Bruker Optics, BEST and BEST.Bruker Nano, Inc.

        Bernhard Wangler, a director of the Company, is a principal of Kanzlei Wangler, a German audit and tax advisory firm which has been retained by the Company and certain of its affiliates for over five years. Amounts paid to Kanzlei Wangler for services provided to the Company and its affiliates in 20102012 totaled $278,117.$443,456.


SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

        Section 16(a) of the Securities Exchange Act of 1934 and the rules promulgated thereunder require our officers and directors and persons owning more than 10% of the outstanding common stock of the Company to file reports of ownership and changes in ownership with the Securities and Exchange Commission and to furnish us with copies of all these filings. We believe, based solely upon a review of those reports and amendments thereto furnished to us during and with respect to our fiscal year ended December 31, 2010,2012, that all of our directors and executive officers complied with the reporting requirements of Section 16(a) of the Exchange Act during fiscal 2010 except Dr. Tony Keller for2012, with the exception of one late Form 4 reportfiling by Mr. Knell due to an administrative error.



AUDIT COMMITTEE REPORT

        The Audit Committee, which operates pursuant to a written charter, assists the board of directors in fulfilling its oversight responsibilities by reviewing Bruker Corporation's financial reporting process on behalf of the board. Management is responsible for Bruker Corporation's internal controls, the financial reporting process and compliance with laws and regulations and ethical business standards. Ernst & Young LLP ("Ernst & Young"), Bruker Corporation's independent registered public accounting firm, is responsible for expressing opinions on the conformity of Bruker Corporation's consolidated financial statements with generally accepted accounting principles and on the effectiveness of Bruker Corporation's internal control over financial reporting. The Audit Committee is responsible for overseeing and monitoring these practices. It is not the duty or responsibility of the Audit Committee to conduct auditing or accounting reviews or procedures.

        In this context, the Audit Committee reviewed and discussed with management and Ernst & Young, among other things, the scope of the audit to be performed, the results of the audit performed, Ernst & Young's evaluation of Bruker Corporation's internal control over financial reporting and the independent registered public accounting firm's feefees for the services performed. Management represented to the Audit Committee that Bruker Corporation's consolidated financial statements were prepared in accordance with generally accepted accounting principles. Discussions about Bruker Corporation's audited financial statements included the auditors' judgments about the quality, not just the acceptability, of the accounting principles, the reasonableness of significant judgments and the clarity of disclosures in its financial statements.

        The Audit Committee also discussed with Ernst & Young other matters required by Statement on Auditing Standards ("SAS") No. 61, "Communication with Audit Committees," as amended by SAS No. 90, "Audit Committee Communications," as amended and as adopted by the Public Company Accounting and Oversight Board (PCAOB) in Rule 3200T, including the quality, not just the acceptability, of the accounting principles, the reasonableness of significant judgments, and the clarity of the disclosures in the financial statements. Ernst & Young also provided to the Audit Committee written disclosures and the letter required by applicable requirements of the PCAOB regarding communications with the Audit Committee concerning independence. The Audit Committee discussed with Ernst & Young the registered public accounting firm's independence from Bruker Corporation and considered the compatibility of non-audit services with Ernst & Young's independence.

        Based on the Audit Committee's discussion with management and Ernst & Young, and the Audit Committee's review of the representations of management and the report of Ernst & Young to the Audit Committee, the Audit Committee recommended to the board that that the audited financial statements be included in the Company's Annual Report on Form 10-K for the year ended December 31, 20102012 filed with the Securities and Exchange Commission and selected Ernst & Young LLP as the independent registered public accounting firm for Bruker Corporation, subject to shareholder ratification, for 2011.2013.

        Submitted by the Audit Committee of Bruker Corporation's Board of Directors.

Brenda J. Furlong, Chair
Richard A. Packer
Chris van Ingen


INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

        Fees billed to the Company by its independent registered public accounting firm for fiscal years 20092011 and 2010,2012, all of which were approved by the Audit Committee, were comprised of the following:

        Audit Fees.    Ernst & Young's fees for its audit of the Company's annual consolidated financial statements, including the integrated audit of internal control over financial reporting, its review of the consolidated financial statements included in our quarterly reports on Form 10-Q, audits of statutory filings, comfort letter procedures and review of other regulatory filings for 20092011 and 20102012 were $3,681,000$5,511,500 and $4,442,000,$4,628,200, respectively. The 20102011 fees include $820,000$497,000 related to work performed in connection with thea contemplated initial public offering for one of our subsidiaries.

        Audit-Related Fees.    Ernst & Young billed us a total of $16,000$2,000 in 2009 and $23,000 in 20102012 for audit-related services. In 2011, no fees for audit-related services including due diligence performed in connection with potential acquisitions.were billed to us by Ernst & Young.

        Tax Fees.    Ernst & Young fees for tax services provided to us, including tax compliance, tax advice and planning, totaled $59,000$14,275 in 20092011 and $27,000$283,000 in 2010.2012.

        ��All Other Fees.    Ernst & Young billed us a total of $3,000 for "other services" in 2009. In 2010,2011 and 2012, no fees for services other than as indicated above were billed to us by Ernst & Young.

Audit Committee Pre-Approval Policies and Procedures

        In order to ensure that audit and non-audit services proposed to be performed by the Company's independent registered public accounting firm do not impair the auditor's independence from the Company, the Audit Committee has adopted, and the board of directors has ratified, the following pre-approval policies and procedures.

Policies

        Before engaging the independent registered public accounting firm to render the proposed service, the Audit Committee must either (i) approve the specific engagement ("specific pre-approval") or (ii) enter into the engagement pursuant to pre-approval policies and procedures established by the Audit Committee ("general pre-approval"), provided the policies and procedures are detailed for the particular service, the Audit Committee is informed of each service, and such policies and procedures do not include delegation of the Audit Committee's responsibilities to management. The Audit Committee annually reviews and pre-approves the services that may be provided by the independent registered public accounting firm without obtaining specific pre-approval. The Audit Committee will add to or subtract from this list of general pre-approved services from time to time, based on subsequent determinations.

        Unless a type of service has received general pre-approval, it requires specific pre-approval by the Audit Committee if it is to be provided by the independent registered public accounting firm. Any proposed services exceeding pre-approved cost levels or budgeted amounts also require specific pre-approval by the Audit Committee.

        For both types of pre-approval, the Audit Committee considers whether such services are consistent with the SEC's and the PCAOB's rules on auditor independence. The Audit Committee also considers whether the independent registered public accounting firm is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Company's business, people, culture, accounting systems, risk profile and other factors, and whether the service might enhance the Company's ability to manage or control risk or improve audit quality. All such factors are considered as a whole, and no one factor will necessarily be determinative.


        The Audit Committee also considers the relationship between fees for audit and non-audit services in deciding whether to pre-approve any such services and may determine, for each fiscal year, the appropriate ratio between the total amount of fees for Audit, Audit-related and Tax services and the total amount of fees for certain permissible non-audit services classified as All Other services.

        The Audit Committee may delegate either type of pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting.

Procedures

        Pre-approval fee levels or budgeted amounts for all services to be provided by the independent registered public accounting firm are established annually by the Audit Committee. Any proposed services exceeding these levels or amounts require specific pre-approval by the Audit Committee, even if previously generally pre-approved.

        All requests or applications for services to be provided by the independent registered public accounting firm that do not require specific approval by the Audit Committee are submitted to the Chief Financial Officer and must include a detailed description of the services to be rendered.

        Requests or applications to provide services that require specific approval by the Audit Committee must be submitted to the Audit Committee by both the independent registered public accounting firm and the Chief Financial Officer, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC's rules on auditor independence.

        The Audit Committee monitors the performance of all services provided by the independent auditor and assesses whether such services are in compliance with this policy.


PROPOSAL NO. 2
RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

        Ernst & Young LLP has been our independent registered public accounting firm since 1998, and has been selected by the Audit Committee of the board of directors as our independent registered public accounting firm for the fiscal year ending December 31, 2011.2013. Although the Company is not required to seek stockholder approval of this appointment, the board of directors believes it to be sound corporate governance to do so. In the event that the stockholders fail to ratify the appointment, the Audit Committee will investigate the reasons for stockholder rejection and will reconsider the appointment. Even if the selection is ratified, the Audit Committee in its discretion may direct the appointment of a different independent public accounting firm during the year if the Audit Committee believes that such a change would be in the best interests of the Company and its stockholders.

        A representative of Ernst & Young is expected to be present at the 20112013 Annual Meeting and will have the opportunity to make a statement if he or she so desires to do so and will be available to respond to appropriate stockholder questions.

        The Board of Directors recommends a vote FOR the ratification of the appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for fiscal 2011.



PROPOSAL NO. 3
ADVISORY VOTE ON EXECUTIVE COMPENSATION

        The Board of Directors recognizes the interest our stockholders have in the compensation of our executives. In recognition of that interest and as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") and recently enacted SEC rules, we are providing our stockholders the opportunity to cast a non-binding advisory vote on the compensation of our named executive officers, as disclosed pursuant to the compensation disclosure rules of the SEC.

        The compensation of our named executive officers is disclosed in the Compensation Discussion and Analysis, or "CD&A," the compensation tables, and the related disclosures contained in this Proxy Statement. As described in our CD&A, we have adopted an executive compensation philosophy designed to deliver competitive total compensation, upon the achievement of financial and/or strategic performance objectives, which will attract, motivate and retain leaders who will drive the creation of shareholder value. In order to implement that philosophy, the Compensation Committee has established a disciplined process for the adoption of executive compensation programs and individual executive officer pay actions.

        We believe that our compensation policies and decisions are focused on pay-for-performance principles, are strongly aligned with the long-term interests of our stockholders, and provide an appropriate balance between risk and incentives. Stockholders are urged to read the CD&A section of this Proxy Statement, which discusses in greater detail how our compensation policies and procedures implement our executive compensation philosophy. We are asking our stockholders to indicate their support for our named executive officer compensation, as described in this Proxy Statement, by approval of the following resolution:

        Your vote on this Proposal No. 3 is advisory, and therefore not binding on the Company, the Compensation Committee, or the board of directors. The vote will not be construed to create or imply any change to the fiduciary duties of the Company or the board, or to create or imply any additional fiduciary duties for the Company or the board. The approval or disapproval of this proposal by stockholders will not require the Company's board of directors or the Compensation Committee to take any action regarding the Company's executive compensation practices. However, our board and our Compensation Committee value input from stockholders and will consider the outcome of the vote when making future executive compensation decisions.

The Board of Directors recommends a vote FOR the approval, on an advisory basis, of the 2010 compensation paid to the named executive officers, as disclosed in the Compensation Discussion and Analysis, the compensation tables, and related narratives in this Proxy Statement.


PROPOSAL NO. 4
ADVISORY VOTE ON FREQUENCY OF EXECUTIVE
COMPENSATION ADVISORY VOTE

        Pursuant to the Dodd-Frank Act and recently enacted SEC rules, at least once every six years we are required to submit for stockholder vote a non-binding resolution to determine whether the stockholder advisory vote on executive compensation should occur every year, every two years, or every three years.

        After careful consideration of the various arguments supporting each frequency level, the board of directors believes that submitting the advisory vote on executive compensation to stockholders every three years is appropriate for the Company and its stockholders at this time. The Company's



compensation policies and procedures are developed with long-term objectives in mind, which is consistent with a multi-year stockholder approval cycle.

        The proxy card provides four choices (every one, two, or three years, or abstain). Stockholders are being asked for their views on the frequency of the advisory vote on executive compensation, and are not voting to approve or disapprove the Board's recommendation.

        As with your vote on Proposal No. 3 above, your vote on this Proposal No. 4 is advisory, and therefore not binding on the Company, the Compensation Committee, or the Company's board of directors. The vote will not be construed to create or imply any change to the fiduciary duties of the Company or the board, or to create or imply any additional fiduciary duties for the Company or the board. Although the vote is non-binding, the board and the Compensation Committee will consider the outcome of the frequency vote and other communications from stockholders when making future decisions regarding the frequency of such advisory votes regarding executive compensation.

The Board recommends a frequency of "THREE YEARS" for future advisory stockholder votes on compensation of our named executive officers.2013.


STOCKHOLDER COMMUNICATIONS

        The board will give appropriate attention to written communications that are submitted by stockholders, and will respond if and as appropriate. Absent unusual circumstances or as contemplated by committee charters and subject to any required assistance or advice from legal counsel, Mr. Stein, the Secretary of the Company, is primarily responsible for monitoring communications from


stockholders and for providing copies or summaries of such communications to the other directors as he considers appropriate.

        Communications are forwarded to all directors if they relate to important substantive matters and include suggestions or comments that Mr. Stein considers to be important for the directors to know. In general, communications relating to corporate governance and long-term corporate strategy are more likely to be forwarded than communications relating to ordinary business affairs, personal grievances and matters as to which we may receive repetitive or duplicative communications.

        Stockholders who wish to send communications on any topic to the board should address such communications to Richard M. Stein, Secretary, at Nixon Peabody LLP, 100 Summer Street, Boston, MA 02110.


TIME FOR SUBMISSION OF STOCKHOLDER PROPOSALS

        Pursuant to Rule 14a-8 under the Exchange Act, stockholders may present proper proposals for inclusion in a company's proxy statement and for consideration at the next annual meeting of its stockholders by submitting their proposals to Bruker Corporation in a timely manner.

        Stockholders interested in submitting a proposal for inclusion in the proxy materials for the annual meeting of stockholders in 20122014 may do so by following the procedures set forth in Rule 14a-8 of the Securities Exchange Act of 1934, as amended. To be eligible for inclusion, stockholder proposals must be received by us no later than December 13, 2011.11, 2013.

        Additionally, under our bylaws, no business may be brought before an annual meeting unless it is specified in the notice of meeting by or at the direction of the Board or by a stockholder entitled to vote who has delivered notice to Bruker Corporation (containing certain information specified in the by laws)bylaws) not less than 90 or more than 120 days prior to the first anniversary of the preceding year's annual meeting.



OTHER MATTERS

        Management knows of no matters which may properly be and are likely to be brought before the meeting other than the matters discussed herein. However, if any other matters properly come before the meeting, the persons named in the enclosed proxy will vote in accordance with their best judgment.


VOTING PROXIES

        The board of directors recommends an affirmative vote on all proposals specified. Proxies will be voted as specified. If signed proxies are returned without specifying an affirmative or negative vote on any proposal, the shares represented by such proxies will be voted in favor of the board of directors' recommendations.

  By order of the board of directors

 

 


GRAPHIC
  Frank H. Laukien, Ph.D.
Chairman, President and Chief Executive Officer

April 11, 201110, 2013


THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: Signature (Joint Owners) Signature [PLEASE SIGN WITHIN BOX] Date Date To withhold authority to vote for any individual nominee(s), mark “For All Except” and write the number(s) of the nominee(s) on the line below. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0000097230_1 R1.0.0.116990000170931_1 R1.0.0.51160 For Withhold For All All All Except The Board of Directors recommends you vote FOR the following: 1. Election of Directors Nominees 01 Stephen W. FesikWolf-Dieter Emmerich 02 Dirk D.Brenda J. Furlong 03 Frank H. Laukien 0304 Richard M. Stein 04 Charles F. Wagner, Jr. 05 Bernhard WanglerA. Packer BRUKER CORPORATION C/O AMERICAN STOCK TRANSFER 6201 FIFTEENTH AVENUE BROOKLYN, NY 11219 VOTE BY INTERNET - www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. The Board of Directors recommends you vote FOR proposals 2 and 3.the following proposal: For Against Abstain 2 To consider and act upon a proposal to ratify, confirm and approve the selection of Ernst & Young LLP as the independent registered public accounting firm of Bruker Corporation for fiscal 2011. 3 To approve, by non-binding advisory vote, compensation of the named executive officers. The Board of Directors recommends you vote 3 YEARS on the following proposal: 1 year 2 years 3 years Abstain 4 To recommend, by non-binding advisory vote, the frequency of executive compensation votes.2013. NOTE: Such other business as may properly come before the meeting or any adjournment thereof. Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name, by authorized officer. For address change/comments, mark here. (see reverse for instructions) Yes No Please indicate if you plan to attend this meeting

 


0000097230_2 R1.0.0.116990000170931_2 R1.0.0.51160 Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Annual Report, Notice & Proxy Statement is/ are available at www.proxyvote.com . BRUKER CORPORATION THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS. THE BOARD RECOMMENDS AN AFFIRMATIVE VOTE ON ALL PROPOSALS SPECIFIED. UNLESS OTHERWISE SPECIFIED, THE PROXY WILL BE VOTED FOR ALL NOMINEES FOR DIRECTOR, FOR PROPOSALS NO. 2 AND NO. 3, AND FOR 3 years FOR PROPOSAL 4 ON THE FREQUENCY OF EXECUTIVE COMPENSATION AS SET FORTH IN THE PROXY STATEMENT, AND IN THE DISCRETION OF THE NAMED PROXIES AS TO ANY OTHER MATTER THAT MAY COME BEFORE THIS MEETING OR ANY ADJOURNMENT THEREOF. The undersigned hereby appoints Frank H. Laukien and Brian P. Monahan,Charles F. Wagner, Jr., or either of them, with power of substitution, Proxies to vote at the Bruker Corporation Annual Meeting of Stockholders on May 12, 2011,16, 2013, and any adjournments or postponements thereof, all shares of common stock of Bruker Corporation that the undersigned is entitled to vote at such meeting on matters which may come before the Annual Meeting in accordance with and as more fully described in the notice of Annual Meeting of Stockholders and the Proxy Statement. THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS. THE BOARD RECOMMENDS AN AFFIRMATIVE VOTE ON ALL PROPOSALS SPECIFIED. UNLESS OTHERWISE SPECIFIED, THE PROXY WILL BE VOTED FOR ALL NOMINEES FOR DIRECTOR, AND FOR PROPOSAL NO. 2, AND IN THE DISCRETION OF THE NAMED PROXIES AS TO ANY OTHER MATTER THAT MAY COME BEFORE THIS MEETING OR ANY ADJOURNMENT THEREOF. (If you noted any Address Changes and/or Comments above, please mark corresponding box on the reverse side.) Address change/comments: Continued and to be signed on reverse side

 

 



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BRUKER CORPORATION 40 Manning Road Billerica, MA 01821 (978) 663-3660
BRUKER CORPORATION NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
BRUKER CORPORATION PROXY STATEMENT
RECORD DATE AND VOTING SECURITIES
CORPORATE INFORMATION
PROPOSAL NO. 1 ELECTION OF DIRECTORS
BOARD LEADERSHIP STRUCTURE
BOARD MEETINGS, COMMITTEES AND COMPENSATION
DIRECTOR NOMINATIONS
ROLE OF THE BOARD IN RISK OVERSIGHT
COMPENSATION OF DIRECTORS
20102012 Director Compensation Table
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
COMPENSATION DISCUSSION AND ANALYSIS
COMPENSATION COMMITTEE REPORT
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
SUMMARY OF EXECUTIVE COMPENSATION
20102012 Summary Compensation Table
20102012 Grants of Plan-Based Awards
Outstanding Equity Awards At December 31, 2010
Outstanding Equity Awards at December 31, 20102012
20102012 Option Exercises and Stock Vested
RELATED PERSONS TRANSACTIONS
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
AUDIT COMMITTEE REPORT
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PROPOSAL NO. 2 RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PROPOSAL NO. 3 ADVISORY VOTE ON EXECUTIVE COMPENSATION
PROPOSAL NO. 4 ADVISORY VOTE ON FREQUENCY OF EXECUTIVE COMPENSATION ADVISORY VOTE
STOCKHOLDER COMMUNICATIONS
TIME FOR SUBMISSION OF STOCKHOLDER PROPOSALS
OTHER MATTERS
VOTING PROXIES