| NOTICE OF | |
| DATE Thursday, November | |
| TIME 8:00 am local time | |
| PLACE Avnet’s Corporate Headquarters 2211 South 47th Street Phoenix, Arizona 85034 | |
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| RECORD DATE September | |
| | INTERNET Visit the website noted on your proxy card to vote online. | | | |
| | TELEPHONE Use the toll-free telephone number on your proxy card to vote by telephone. | | | |
| | MAIL Sign, date, and return your proxy card in the enclosed envelope to vote by mail. | | | |
| | IN PERSON Cast your vote in person | | | |
| Table of Contents | |
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| Proposal 1 — Election of Directors | | | | | | | ||
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Non-GAAP Measures | ||||||||
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| Proxy Statement Summary | |
| DATE November | | | | TIME 8:00 am local time | | | | PLACE Avnet’s Headquarters 2211 South 47th Street Phoenix, Arizona 85034 | | | | RECORD DATE September | |
Proposals | Proposals | | | | Board Recommendation | | | | Page Reference | | Proposals | | | | Board Recommendation | | | | Page Reference | | ||||||
1 | | | | Election of Directors | | | | FOR | | | | | | | | Election of Directors | | | | FOR | | | | | ||
2 | | | | Advisory vote on executive compensation | | | | FOR | | | | | | | | Advisory vote on named executive compensation | | | | FOR | | | | | ||
3 | | | | Ratification of independent registered public accounting firm | | | | FOR | | | | | | | | Advisory vote on the frequency of future advisory votes on named executive compensation | | | | 1 YEAR | | | | | ||
4 | | | | Ratification of independent registered public accounting firm | | | | FOR | | | | |
| | INTERNET Visit the website noted on your | | | |
| | TELEPHONE Use the toll-free telephone number on your proxy card to vote by telephone. | | | |
| | MAIL Sign, date, and return your proxy card in the enclosed envelope to vote by mail. | | | |
| | IN PERSON Cast your vote in person | | | |
| | | Age | | Director Since | | Independent | | | Avnet Committees | | | | Age | | Director Since | | Independent | | | Avnet Committees | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A | | | | C | | | | CG | | | | F | | | | E | | | A | | | | C | | | | CG | | | | F | | | | E | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rodney C. Adkins Chairman of the Board of Avnet, Inc, President, 3RAM Group LLC | | 64 | | 2015 | | | | YES | | | | | | | | | | | | | | | | | | | | • | | | | | | | | | | | | | | ◦ | | | Rodney C. Adkins Chairman of the Board of Avnet, Inc, President, 3RAM Group LLC | | 65 | | 2015 | | | | YES | | | | | | | | | | | | | | | | | | | | • | | | | | | | | | | | | | | ◦ | | | ||||||
| Carlo Bozotti Industrial Partner, FSI | | 69 | | 2019 | | | | YES | | | | | | ◦ | | | | | | | | | | | | | | | | | | | | | • | | | | | | | • | | | Carlo Bozotti Industrial Partner, FSI | | 70 | | 2019 | | | | YES | | | | | | ◦ | | | | | | | | | | | | | | | | | | | | | • | | | | | | | • | | | ||||||
| Brenda L. Freeman Chief Brand Officer, Wunderkind | | 58 | | 2018 | | | | YES | | | | | | • | | | | | | | | | | | | | | | | | | | | | • | | | | | | | | | | Brenda L. Freeman Founder, Joyeux Advisory Group | | 59 | | 2018 | | | | YES | | | | | | • | | | | | | | | | | | | | | • | | | | | | | | | | | | | | | | | ||||||
| Philip R. Gallagher Chief Executive Officer, Avnet, Inc. | | 61 | | 2020 | | | | NO | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Philip R. Gallagher Chief Executive Officer, Avnet, Inc. | | 62 | | 2020 | | | | NO | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| Jo Ann Jenkins Chief Executive Officer, AARP | | 64 | | 2018 | | | | YES | | | | | | | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | | | | Jo Ann Jenkins Chief Executive Officer, AARP | | 65 | | 2018 | | | | YES | | | | | | | | | | | | | • | | | | | | | | | | | | | | • | | | | | | | | | | ||||||
| Oleg Khaykin President and Chief Executive Officer, Viavi Solutions, Inc. | | 57 | | 2018 | | | | YES | | | | | | • | | | | | | | | | | | | | | | | | | | | | ◦ | | | | | | | • | | | Oleg Khaykin President and Chief Executive Officer, Viavi Solutions, Inc. | | 58 | | 2018 | | | | YES | | | | | | • | | | | | | | | | | | | | | | | | | | | | ◦ | | | | | | | • | | | ||||||
| James A. Lawrence Chairman, Lake Harriet Capital, LLC | | 69 | | 2011 | | | | YES | | | | | | | | | | | | | ◦ | | | | | | | | | | | | | | • | | | | | | | • | | | James A. Lawrence Chairman, Lake Harriet Capital, LLC | | 70 | | 2011 | | | | YES | | | | | | | | | | | | | ◦ | | | | | | | | | | | | | | • | | | | | | | • | | | ||||||
| Ernest E. Maddock Former Chief Financial Officer, Micron Technology, Inc. | | 64 | | 2021 | | | | YES | | | | | | • | | | | | | | | | | | | | | | | | | | | | • | | | | | | | | | | Ernest E. Maddock Former Chief Financial Officer, Micron Technology, Inc. | | 65 | | 2021 | | | | YES | | | | | | • | | | | | | | | | | | | | | | | | | | | | • | | | | | | | | | | ||||||
| Avid Modjtabai Former Senior Executive Vice President, Payments, Virtual Solutions and Innovation Group, Wells Fargo | | 60 | | 2014 | | | | YES | | | | | | | | | | | | | • | | | | | | | ◦ | | | | | | | | | | | | | | • | | | Avid Modjtabai Former Senior Executive Vice President, Payments, Virtual Solutions and Innovation Group, Wells Fargo | | 61 | | 2014 | | | | YES | | | | | | | | | | | | | • | | | | | | | ◦ | | | | | | | | | | | | | | • | | | ||||||
| Adalio T. Sanchez President, S Group Advisory LLC | | 63 | | 2019 | | | | YES | | | | | | | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | | | | Adalio T. Sanchez President, S Group Advisory LLC | | 64 | | 2019 | | | | YES | | | | | | | | | | | | | • | | | | | | | • | | | | | | | | | | | | | | | | |
| ◦Chair | | | A: Audit | | | C: Compensation and Leadership Development | |
| • Member | | | CG: Corporate Governance | | |||
| | | | E: Executive | | | F: Finance | |
| VISION: To be the preferred distributor partner at the center of the world’s technology design and supply chains by delivering the best experience for both customers and suppliers every time. | |
| MISSION: We deliver superior service by holding ourselves accountable to our stakeholders, enabling design and supply chain technology solutions that improve life experiences globally, while staying grounded in our Core Values. | |
| PROXY STATEMENT for ANNUAL MEETING of SHAREHOLDERS | |
| DATE November | | | | TIME 8:00 am local time | | | | PLACE Avnet’s Headquarters 2211 South 47th Street Phoenix, Arizona 85034 | | | | RECORD DATE September | |
Proposals | Proposals | | | | Voting Standard | | | | Board Recommendation | | | | Page Reference | | Proposals | | | | Voting Standard | | | | Board Recommendation | | | | Page Reference | | ||||||
1 | | | | Election of Directors | | | | Majority of votes cast | | | | FOR | | | | | | | | Election of Directors | | | | Majority of votes cast | | | | FOR | | | | | ||
2 | | | | Advisory vote on executive compensation | | | | Majority of votes cast | | | | FOR | | | | | | | | Advisory vote on named executive compensation | | | | Majority of votes cast | | | | FOR | | | | | ||
3 | | | | Ratification of independent registered public accounting firm | | | | Majority of votes cast | | | | FOR | | | | | | | | Advisory vote on the frequency of future advisory votes on named executive compensation | | | | Majority of votes cast | | | | 1 YEAR | | | | | ||
4 | | | | Ratification of independent registered public accounting firm | | | | Majority of votes cast | | | | FOR | | | | |
| PROPOSAL 1: ELECTION OF DIRECTORS | |
| | RECOMMENDATION OF THE BOARD | | | | | | | | | |||
| | | | The Board recommends that shareholders vote FOR all ten nominees listed below. | | |
| | Director Since: 2015 Board Chair Since: 2018 Age: Independent Current Committee Memberships: • Corporate Governance • Executive (Chair) | | | | RODNEY C. ADKINS | | | |||
| Recent Business Experience: Mr. Adkins has served as the Company’s Chair of the Board since November 2018. He serves as the President of 3RAM Group LLC, a privately held company specializing in capital investments, business consulting services, and property management. Mr. Adkins formerly served as Senior Vice President of IBM from 2007 until 2014. In his 33-year career with IBM, Mr. Adkins held a number of development and management roles, including Senior Vice President of Corporate Strategy from 2013 to 2014 and Senior Vice President of Systems and Technology Group from 2009 to 2013. Mr. Adkins currently serves on the board of directors of United Parcel Service, Inc. (NYSE: UPS); W.W. Grainger, Inc. (NYSE: GWW), and PayPal Holdings, Inc. (Nasdaq: PYPL). From 2007 to 2013, he served on the board of directors of Pitney Bowes Inc. (NYSE: PBI) and from 2014 to 2019, he served on board of directors of PPL Corporation (NYSE: PPL). | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • Operations | | | • International Business | | | |||||
| • Technology/Digital Media | | | • Industry | | | |||||
| • Risk Management | | | | | | |||||
| The Board benefits from Mr. Adkins’ global business experience in the technology industry, including emerging technologies and services, international and emerging markets, and supply chain management. In addition, the Board believes he provides additional experience in the areas of corporate governance, strategy development, and senior leadership. | | |
| | Director Since: 2019 Age: Independent Current Committee Memberships: • Audit (Chair) • Finance • Executive | | | | CARLO BOZOTTI | | | |||
| Recent Business Experience: Mr. Bozotti has been an Industrial Partner of FSI since June 2018. FSI is an independent private equity firm based in Milan, Italy that is currently managing the fund FSI I | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • Industry | | | • Finance | | | |||||
| The Board benefits from Mr. Bozotti’s extensive experience in the semiconductor industry as well as his strong experience in technology and innovation, finance, global business, corporate leadership and management, sales and marketing, and risk oversight. | | |
| | Director Since: 2018 Age: Independent Current Committee Memberships: • Audit • | | | | BRENDA L. FREEMAN | | | |||
| Recent Business Experience: Ms. Freeman | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • CEO | | | • Finance | | | |||||
| • Technology/ Digital Media | | | • Marketing | | | |||||
| • ESG | | | | | | |||||
| The Board benefits from Ms. Freeman’s experience in corporate leadership, serving on other boards, and her strong background in marketing, technology, digital commerce, and digital transformation. | | |
| | Director Since: 2020 Age: Not Independent | | | | Philip R. Gallagher | | | |||
| Recent Business Experience: Mr. Gallagher has served as the Company’s Chief Executive Officer and a Director since November 2020, and as the President, Electronic Components since August 2018. He previously served as the Interim Chief Executive Officer from July 2020 until November 2020 and as the Global President, Core Distribution Business from May 2017 to August 2018. He began his career with the Company in 1982 and held executive leadership positions in sales, marketing and operations during his 38 years at the Company, with his last role as Global President of Technology Solutions from 2009 to 2014. He left the Company in 2014, and served as President, Americas Sales and Marketing at TTI, a leading authorized distributor of interconnect, passive, electromechanical and discrete components, from 2016 to 2017. He rejoined the Company in May 2017. Mr. Gallagher currently serves on the advisory council for Women in Electronics and is also a member of Greater Phoenix Leadership (GPL), an organization of leading CEOs focused on creating action on priority issues. | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • Industry | | | • International Business | | | |||||
| • Technology/Digital Media | | | ||||||||
| The Board benefits from Mr. Gallagher’s extensive experience in business operations, | | |
| | Director Since: 2018 Age: Independent Current Committee Memberships: • Compensation and Leadership Development • | | | | JO ANN JENKINS | | | |||
| Recent Business Experience: Ms. Jenkins has served as the Chief Executive Officer of AARP, the nation’s largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live and age, since 2014. Previously, she served as the Executive Vice President and Chief Operating Officer of AARP from 2013 to 2014 and President of the AARP Foundation from 2010 to 2013. Prior to that, Ms. Jenkins held various positions at the Library of Congress from 1994 to 2010, including Chief Operating Officer from 2007 to 2010. Ms. Jenkins has served on the board of directors of General Mills, Inc. (NYSE: GIS) since January 2020. | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • CEO | | | • Operations | | | |||||
| The Board benefits from Ms. Jenkins’ deep understanding of strategic management and innovative marketing, which she developed through her CEO and operational roles. She contributes valuable insights regarding corporate leadership and management, government affairs and community relations, and innovation and strategic transformation, including developing and implementing diversity strategies. | | |
| | Director Since: 2018 Age: Independent Current Committee Memberships: • Audit • Executive • Finance (Chair) | | | | OLEG KHAYKIN | | | |||
| Recent Business Experience: Mr. Khaykin has served as the President and Chief Executive Officer and member of the board of directors of Viavi Solutions Inc. (Nasdaq: VIAV), a provider of network and service enablement solutions, since February 2016. From 2015 to 2016, he served as a Senior Advisor at Silver Lake Partners. Prior to that, Mr. Khaykin served as President and Chief Executive Officer and a member of the board of directors of International Rectifier, a maker of power semiconductors, from 2008 until its acquisition by Infineon AG in 2015. From 2003 to 2008, he served as Executive Vice President and Chief Operating Officer of Amkor Technology, Inc. (Nasdaq: AMKR), and from 1999 to 2003 as Vice President of Strategy & Business Development at Conexant Systems, Inc. (Nasdaq: CNXT) and Mindspeed Technologies, Inc. (Nasdaq: MSPD). Mr. Khaykin had previously served on the boards of directors of Marvell Technology Group (Nasdaq: MRVL) from 2016 to July 2020 and Newport Corporation from 2010 until its acquisition by MKS Instruments in 2016. | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • CEO | | | • Technology/ Digital Media | | | |||||
| • International Business | | | • Risk Management | | | |||||
| • Finance | | | • Marketing | | | |||||
| • Operations | | | • Industry | | | |||||
| The Board benefits from Mr. Khaykin’s significant corporate leadership and management experience and extensive experience in the semiconductor industry. His experience with technology companies, and as both a prior customer and supplier to the Company, brings valuable insights to the Board. | | |
| | Director Since: 2011 Age: Independent Current Committee Memberships: • Compensation and Leadership Development (Chair) • Executive • Finance | | | | JAMES A. LAWRENCE | | | |||
| Recent Business Experience: Mr. Lawrence serves as the Chairman of Lake Harriet Capital, LLC. He previously served as Chairman of Great North Star LLC from 2015 to 2017, Chairman of Rothschild North America from 2012 to 2015, and Chief Executive Officer of Rothschild North America and as co-head of global investment banking from 2010 to 2012. Prior to that, he served as Chief Financial Officer of Unilever PLC (LON: ULVR) from 2007 to 2009, Vice Chairman and Chief Financial Officer of General Mills, Inc. (NYSE: GIS) from 1998 to 2007, Executive Vice President and Chief Financial Officer of Northwest Airlines (Nasdaq: NWAC) from 1996 to 1998, and Chief Executive Officer of Pepsi-Cola Asia Middle East Africa Group from 1992 to 1996. Mr. Lawrence has served on the board of directors of Smurfit Kappa, Dublin (LON: SKG) since 2015 and AerCap Holdings, N.V. (NYSE: AER) since 2017. Previously he had served on the board of directors of International Airlines Group (LON: IAG) from 2010 to 2018. | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • CEO | | | • Finance | | | |||||
| • International Business | | | • Marketing | | | |||||
| • Legal & Regulatory Oversight | | | • Risk Management | | | |||||
| • Operations | | | ||||||||
| The Board benefits from Mr. Lawrence’s breadth of global business experience, including strategy development and compliance. Additionally, as a former Chief Financial Officer for multiple public companies, Mr. Lawrence has extensive experience in finance and accounting, particularly as it applies to public companies. | | |
| | Director Since: Age: Independent Current Committee Memberships: • Audit • Finance | | | | Ernest E. Maddock | | | |||
| Recent Business Experience: Mr. Maddock served as Chief Financial Officer and Senior Vice President of Micron Technology, Inc. (Nasdaq: MU) from 2015 until his retirement in 2018. Prior to that, he served as Chief Financial Officer of Riverbed Technology, Inc. from 2013 to 2015. From 1997 to 2013, Mr. Maddock served in various roles at Lam Research Corporation (Nasdaq: LRCX), last as Chief Financial Officer from 2008 to 2013. He has served on the board of directors of Ultra Clean Holdings Inc. (Nasdaq: UCTT) since June | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • International Business | | | • Risk Management | | | |||||
| • Finance | | | • Operations | | | |||||
| The Board benefits from Mr. Maddock’s breadth of global business experience, including risk management and operations, and experience in the semiconductor industry. Additionally, as a former Chief Financial Officer for multiple public companies, Mr. Maddock has extensive experience in finance and accounting, particularly as it applies to public companies. | | |
| | Director Since: 2014 Age: Independent Current Committee Memberships: • Compensation and Leadership Development • Corporate Governance (Chair) • Executive | | | | AVID MODJTABAI | | | |||
| Recent Business Experience: Ms. Modjtabai served as the Senior Executive Vice President and head of the Payments, Virtual Solutions and Innovation Group at Wells Fargo (NYSE: WFC) until March 2020, when she retired from Wells Fargo after 27 years. Prior to that, she served in various leadership roles at Wells Fargo, including Group head for Wells Fargo Consumer Lending from 2011 to | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • Finance | | | • Technology/ Digital Media | | | |||||
| • Marketing | | | • Operations | | | |||||
| • International Business | | | ||||||||
| The Board benefits from Ms. Modjtabai’s extensive experience in operations and strategy development. The Board also benefits from her experience in the areas of financial services and change management. | | |
| | Director Since: 2019 Age: Independent Current Committee Memberships: • Compensation and Leadership Development • Corporate Governance | | | | ADALIO T. SANCHEZ | | | |||
| Recent Business Experience: Mr. Sanchez is President of S Group Advisory LLC, a management consulting firm providing advisory services on business strategy, technology, and operational excellence. He also serves | | | ||||||||
| Primary Qualifications and Experience: | | | ||||||||
| • Industry | | | • International Business | | | |||||
| • Operations | | | • Technology/ Digital Media | | | |||||
| • ESG | | | ||||||||
| The Board benefits from Mr. Sanchez’s significant experience in corporate leadership and management, | | |
| CORPORATE GOVERNANCE | |
| | Board Diversity Matrix (As of September 19, 2022) | | | | Board Diversity Matrix (As of September 18, 2023) | | | ||||||||||||||||
| | Board Size: | | | | Board Size: | | | ||||||||||||||||
| | Total Number of Directors | | | | 11 | | | | Total Number of Directors | | | | 10 | | | ||||||||
| | Gender Identity: | | | | Female | | | | Male | | | | Gender Identity: | | | | Female | | | | Male | | |
| | Directors | | | | 3 | | | | 8 | | | | Directors | | | | 3 | | | | 7 | | |
| | Demographic Background | | | | Demographic Background | | | ||||||||||||||||
| | African American or Black | | | | 2 | | | | 1 | | | | African American or Black | | | | 2 | | | | 1 | | |
| | Hispanic or Latinx | | | | 0 | | | | 1 | | | | Hispanic or Latinx | | | | 0 | | | | 1 | | |
| | White | | | | 1 | | | | 6 | | | | White | | | | 1* | | | | 5 | | |
| | LGBTQ+ | | | | 1 | | | | LGBTQ+ | | | | 1 | | |
| The Board of Directors and its Committees | |
| | | | Committees | | | | | | ||||||||||||||||||||
| | | | A | | | | C | | | | CG | | | | F | | | | E | | | | Independent | | ||||
| Rodney C. Adkins (Board Chair) | | | | | | | | | | • | | | | | | | | Chair | | | | | ||||||
| Carlo Bozotti | | | Chair | | | | | | | | | | | | • | | | | • | | | | | |||||
| Brenda L. Freeman | | | • | | | | | | | | • | | | | | | | | | | | | | |||||
| Jo Ann Jenkins | | | | | | | • | | | | | | | | • | | | | | | | | | |||||
| Oleg Khaykin | | | • | | | | | | | | | | | | Chair | | | | • | | | | | |||||
| James A. Lawrence | | | | | | | Chair | | | | | | | | • | | | | • | | | | | |||||
| Ernest E. Maddock | | | • | | | | | | | | | | | | • | | | | | | | | | |||||
| Avid Modjtabai | | | | | | | • | | | | Chair | | | | | | | | • | | | | | |||||
| Adalio T. Sanchez | | | | | | | • | | | | • | | | | | | | | | | | | ||||||
|
| AUDIT COMMITTEE | | ||||
| Members: Carlo Bozotti (Chair) Brenda L. Freeman Oleg Khaykin Ernest E. Maddock Meetings in fiscal Audit Committee Financial Experts: Carlo Bozotti (Chair) Oleg Khaykin Ernest E. Maddock | | | | Responsibilities The Audit Committee is charged with: • Assisting and representing the Board in fulfilling its oversight responsibilities with respect to: • The integrity of the Company’s financial statements; • The independence, qualifications, and performance of the Company’s independent external auditors; • The performance of the Company’s internal audit function; • Compliance with legal and regulatory requirements; and • Internal ethics and compliance program, enterprise risk management, and cybersecurity. • Appointing, compensating, retaining and overseeing the independent registered public accounting firm. • Reviewing and approving transactions with any related person in which the Company is a participant and involves an amount Please see the Audit Committee Report set forth elsewhere in this Proxy Statement for more information about the Audit Committee and its operations. | |
| COMPENSATION AND LEADERSHIP DEVELOPMENT COMMITTEE | | ||||
| Members: James A. Lawrence (Chair) Jo Ann Jenkins Avid Modjtabai Adalio T. Sanchez Meetings in fiscal | | | | Responsibilities The Compensation and Leadership Development Committee is charged with: • Overseeing the Company’s overall compensation structure, policies, and programs. • Assisting the Board in fulfilling its responsibilities with respect to administering the Company’s long-term incentive plan. • Reviewing and approving compensation arrangements with executive officers. • Evaluating CEO performance and recommending CEO compensation to the Board. • Overseeing the Company’s policies and programs relating to talent, leadership, culture, diversity, equity and inclusion. • Overseeing Director compensation and recommending any changes to Director compensation to the Board. The Compensation and Leadership Development Committee’s objective is to establish and administer a total compensation program that fairly and competitively rewards long-term performance and enhances shareholder value. | |
| | |||||
| Members: Avid Modjtabai (Chair) Rodney C. Adkins Brenda L. Freeman Adalio T. Sanchez Meetings in fiscal | | | | Responsibilities The • • Periodically reviewing the Company’s succession plans, including CEO succession. • Overseeing the process for evaluating the Board, • • • | |
| FINANCE COMMITTEE | | ||||
| Members: Oleg Khaykin (Chair) Carlo Bozotti Jo Ann Jenkins James A. Lawrence Ernest E. Maddock Meetings in fiscal 2023: 4 | | | | Responsibilities The Finance Committee is charged with: • Assisting the Board with overseeing financial matters. • Reviewing and providing guidance to the Board and management about capital allocation, capital structure, mergers and acquisitions, financial strategies, capital markets, and share buybacks. • Approving secured borrowings, loans, and credit facilities, for amounts exceeding management’s delegated authority up to the committee’s delegated authority. • Approving real estate transactions for amounts exceeding management’s delegated authority. • Approving company guarantees and similar instruments for amounts exceeding management’s delegated authority. | |
| EXECUTIVE COMMITTEE | | ||||
| Members: Rodney C. Adkins (Chair) Carlo Bozotti Oleg Khaykin James A. Lawrence Avid Modjtabai Meetings in fiscal | | | | Responsibilities The Board established the Executive Committee to exercise the powers and authority of the Board during the intervals between Board meetings when the Chair of the Board determines that convening a special Board meeting is not warranted. The Executive Committee may exercise the powers and authority of the Board except those not permitted by law or the Company’s Bylaws. Therefore, the Executive Committee does not have the authority to: • Submit to shareholders any action that • Fill vacancies in the Board or any committee; • Fix compensation for Directors serving on the Board or any committee; • Amend or repeal the Bylaws or adopt new bylaws; or • Amend or repeal any Board resolutions which, by its terms, are not amendable or repealable. | |
| Director Compensation | |
| Annual Compensation Components: | | | | | | | | | | |
| Cash Retainer(1) | | | | | | | $ | 100,000 | | |
| Equity(2) | | | | | | | $ | 160,000 | | |
| Total: | | | | | | | $ | 260,000 | | |
| % of Cash to Equity | | | | | | | | 38/62 | | |
| Additional Annual Amounts:(1) | | | | | | | |
| Independent Chair Retainer | | | | $ | 175,000 | | |
| Audit Committee Chair Retainer(3) | | | | $ | 25,000 | | |
| Audit Committee Retainer | | | | $ | 7,500 | | |
| Compensation and Leadership Development Committee Chair Retainer | | | | $ | 20,000 | | |
| Corporate Governance Committee Chair Retainer | | | | $ | 15,000 | | |
| Finance Committee Chair Retainer | | | | $ | 15,000 | | |
| Annual Compensation Components: | | | In Effect 07-03-22 | | | Change Effective 01-01-23 | |
| Cash Retainer(1) | | | $100,000 | | | | |
| Equity(2) | | | $160,000 | | | $180,000 | |
| Total for FY23: | | | | | $280,000 | | |
| % of Cash/Equity | | | | | 36/64 | |
| Additional Annual Amounts:(1) | | | In Effect 07-03-22 | | | Change Effective 01-01-23 | |
| Independent Chair Retainer | | | $175,000 | | | $185,000 | |
| Audit Committee Chair Retainer(3) | | | $25,000 | | | | |
| Audit Committee Retainer | | | $7,500 | | | | |
| Compensation and Leadership Development Committee Chair Retainer | | | $20,000 | | | | |
| Corporate Governance Committee Chair Retainer | | | $15,000 | | | | |
| Finance Committee Chair Retainer | | | $15,000 | | | | |
| Name | | Fees Earned or Paid in Cash ($) | | Stock Awards ($) | | Total ($) | | Name | | Fees Earned or Paid in Cash ($) | | Stock Awards ($) | | Total ($) | | ||||||||||||||||||
| (a) | | | | (b) | | | | | (c) | | | (h) | | (a) | | | | (b) | | | | | (c) | | | (h) | | ||||||
| Rodney C. Adkins | | | | 276,875 | | | | | 160,000 | | | 436,875 | | Rodney C. Adkins | | | | 280,000 | | | | | 180,000 | | | 460,000 | | ||||||
| Carlo Bozotti | | | | 125,000 | | | | | 160,000 | | | 285,000 | | Carlo Bozotti | | | | 125,000 | | | | | 180,000 | | | 305,000 | | ||||||
| Michael A. Bradley(1) | | | | 26,875 | | | | | — | | | 26,875 | | Brenda L. Freeman | | | | 107,500 | | | | | 180,000 | | | 287,500 | | ||||||
| Brenda L. Freeman | | | | 107,500 | | | | | 160,000 | | | 267,500 | | Jo Ann Jenkins | | | | 100,000 | | | | | 180,000 | | | 280,000 | | ||||||
| Jo Ann Jenkins | | | | 100,000 | | | | | 160,000 | | | 260,000 | | Oleg Khaykin | | | | 122,500 | | | | | 180,000 | | | 302,500 | | ||||||
| Oleg Khaykin | | | | 118,750 | | | | | 160,000 | | | 278,750 | | James A. Lawrence | | | | 120,000 | | | | | 180,000 | | | 300,000 | | ||||||
| James A. Lawrence | | | | 120,000 | | | | | 160,000 | | | 280,000 | | Ernest E. Maddock | | | | 107,500 | | | | | 180,000 | | | 287,500 | | ||||||
| Ernest E. Maddock(2) | | | | 118,308 | | | | | 216,548 | | | 334,865 | | Avid Modjtabai | | | | 115,000 | | | | | 180,000 | | | 295,000 | | ||||||
| Avid Modjtabai | | | | 115,000 | | | | | 160,000 | | | 275,000 | | Adalio T. Sanchez | | | | 100,000 | | | | | 180,000 | | | 280,000 | | ||||||
| Adalio T. Sanchez | | | | 100,000 | | | | | 160,000 | | | 260,000 | | William H. Schumann, III(1) | | | | 30,625 | | | | | — | | | 30,625 | | ||||||
| William H. Schumann, III | | | | 111,250 | | | | | 160,000 | | | 271,250 | |
| EXECUTIVE OFFICERS OF THE COMPANY | |
| Name | | | Age | | | Office | |
| Philip R. Gallagher | | | | | Chief Executive Officer and President, Electronic Components | | |
| Kenneth A. Jacobson | | | | | Chief Financial Officer | | |
| Ken E. Arnold | | | | | Senior Vice President and Chief People Officer | | |
| Michael R. McCoy | | | | | Senior Vice President, General Counsel and Chief Legal Officer | | |
| Leng Jin (Max) Chan | | | | | Senior Vice President and Chief Information Officer | | |
| Elizabeth A. McMullen | | | | | Senior Vice President, Operations | | |
| Rebeca Obregon-Jimenez | | | 54 | | | Senior Vice President, Strategic Business Engagements and Supplier Management | |
| | | | | KENNETH A. JACOBSON | | | |
| Kenneth A. Jacobson has served as Chief Financial Officer since September 6, 2022. Prior to that he had served as the Corporate Controller since 2013 and Principal Accounting Officer since February 2018. From August 2017 to January 2018, Mr. Jacobson served as the Interim Chief Financial Officer. Prior to joining the Company, Mr. Jacobson served as the Director of External Reporting and Accounting Research for First Solar Inc. from 2011 to 2013, where he led external reporting and provided accounting support for acquisitions and sales of solar power projects. Mr. Jacobson began his career in public accounting with PricewaterhouseCoopers (PwC) for ten years, where he worked with a variety of clients across various industries. | | |
| | | | | KEN E. ARNOLD | | | |
| Ken E. Arnold has served as Senior Vice President and Chief People Officer since February 2019. He previously served in various human resource leadership roles with the Company, including as Vice President, Human Resources from 2009 to February 2019 and Director, Human Resources — Talent Acquisition and HR Services from 2007 to 2009. | | |
| | | | | MICHAEL R. MCCOY | | | |
| Michael R. McCoy has served as Senior Vice President, General Counsel and Chief Legal Officer since April 2020. He joined the Company in 2010 and previously served as General Counsel, International from May 2019 to April 2020; Vice President, Assistant General Counsel, EMEA General Counsel from 2017 to 2019; and Secretary from 2013 to 2017. Prior to joining the Company, Mr. McCoy worked at two international law firms and at the U.S. Securities and Exchange Commission’s Division of Corporation Finance. | | |
| | | | | LENG JIN (MAX) CHAN | | | |
| Max Chan has served as the Chief Information Officer since 2019 and as Senior Vice President since 2021. Since joining the Company in 2013, he has served in various roles including Vice President, Information Technology Global Supply Chain from 2016 to 2019 and Vice President of Information for Avnet Technology Solutions (a former business unit of the Company) in Asia from 2013 to 2016. Prior to joining the Company, Mr. Chan held several Information Technology leadership roles, including Chief Information Officer, Asia at VF Corporation (NYSE: VFC) from 2008 to 2010 and Vice President, IT Global Supply Chain, Building Efficiency at Johnson Controls International (NYSE: JCI) from 2001 to 2008 and 2010 to 2012. | | |
| | | | | ELIZABETH A. MCMULLEN | | | |
| Elizabeth A. McMullen has served as the Senior Vice President, Operations since 2021. Since joining the Company in 2010, she has served in various leadership roles, including Global Vice President, Operations from 2020 to 2021; and Vice President, Global Business Operations from 2018 to 2020. Prior to joining the Company, Ms. McMullen held senior leadership positions at Deutsche Post DHL Group (OTCMKTS: DPSGY) and Arthur Andersen, LLP. | | |
| | | | | Rebeca Obregon-Jimenez | | | |
| Rebeca Obregon-Jimenez has served as the Senior Vice President of Strategic Business Engagements and Supplier Management since December 2022. She has over 30 years of experience in the semiconductor industry and has built teams and businesses from inception to profitable worldwide market leaders. Prior to joining Avnet, she served in various roles at Amkor Technology, Inc. (NASDAQ: AMKR), including from January 2020 to December 2022 as Corporate Vice President of Advanced System in Package Business Unit; from December 2015 to January 2020 as Corporate Vice President of Sales, US East Region; from January 2015 to December 2015 as Senior Vice President of Strategic Program Management; and from August 2014 to December 2014 as Senior Vice President of Operations Finance. Prior to that she served in various leadership roles at Integrated Device Technology (NASDAQ: IDTI) from May 1999 to 2014 and Motorola, Semiconductor Products Sector from 1990 to 1999. She has also served since 2019 as Board Director at FormFactor (NASDAQ: FORM). | | |
| Security Ownership of Certain Beneficial Owners and Management | |
| Name of Beneficial Owner | | Common Stock(a) | | Stock Options Exercisable Within 60 Days | | Total Common Stock Beneficially Owned | | Percent of Class(b) | | Name of Beneficial Owner | | Common Stock(a) | | Stock Options Exercisable Within 60 Days | | Total Common Stock Beneficially Owned | | Percent of Class(b) | | ||||||||||||||||||||||||||
| 5% Holders | | | | | | | | | | | | | | | | | | | 5% Holders | | | | | | | | | | | | | | | | | | | ||||||||
| BlackRock, Inc.(1) 55 East 52nd Street New York, NY 10055 | | | | 9,551,529 | | | | | | | | 9,551,529 | | | | 10.2% | | | BlackRock, Inc.(1) 50 Hudson Yards New York, NY 10001 | | | | 9,243,635 | | | | | | | | 9,243,635 | | | | 10.1% | | | ||||||||
| Pzena Investment Management LLC.(2) 320 Park Avenue, 8th Floor New York, NY 10022 | | | | 12,185,337 | | | | | | | | 12,185,337 | | | | 13.1% | | | Dimensional Fund Advisors LP(2) 6300 Bee Cave Road, Bldg One Austin, TX 78746 | | | | 5,934,049 | | | | | | | | 5,934,049 | | | | 6.5% | | | ||||||||
| The Vanguard Group(3) 100 Vanguard Blvd. Malvern, PA 19355 | | | | 10,763,264 | | | | | | | | 10,763,264 | | | | 11.5% | | | Pzena Investment Management LLC.(3) 320 Park Avenue, 8th Floor New York, NY 10022 | | | | 9,282,603 | | | | | | | | 9,282,603 | | | | 10.1% | | | ||||||||
| Directors, Director Nominees and Named Executive Officers | | | | | | | | | | | | | | | | | | | The Vanguard Group(4) 100 Vanguard Blvd. Malvern, PA 19355 | | | | 10,224,425 | | | | | | | | 10,224,425 | | | | 11.2% | | | ||||||||
| Rodney C. Adkins, Chair | | | | 28,945(4) | | | | | 0 | | | 28,945 | | | | * | | | Directors, Director Nominees and Named Executive Officers | | | | | | | | | | | | | | | | | | | ||||||||
| Carlo Bozotti, Director | | | | 12,602 | | | | | 0 | | | 12,602 | | | | * | | | Rodney C. Adkins, Chair | | | | 33,417(5) | | | | | 0 | | | 33,417 | | | | * | | | ||||||||
| Brenda L. Freeman, Director | | | | 17,972(5) | | | | | 0 | | | 17,972 | | | | * | | | Carlo Bozotti, Director | | | | 16,936 | | | | | 0 | | | 16,936 | | | | * | | | ||||||||
| Jo Ann Jenkins, Director | | | | 17,660 | | | | | 0 | | | 17,660 | | | | * | | | Brenda L. Freeman, Director | | | | 22,868(6) | | | | | 0 | | | 22,868 | | | | * | | | ||||||||
| Oleg Khaykin, Director | | | | 36,647(6) | | | | | 0 | | | 36,647 | | | | * | | | Jo Ann Jenkins, Director | | | | 21,994 | | | | | 0 | | | 21,994 | | | | * | | | ||||||||
| James A. Lawrence, Director | | | | 222,584(7) | | | | | 0 | | | 222,584 | | | | * | | | Oleg Khaykin, Director | | | | 44,752(7) | | | | | 0 | | | 44,752 | | | | * | | | ||||||||
| Ernest E. Maddock, Director | | | | 5,265 | | | | | 0 | | | 5,265 | | | | | | | James A. Lawrence, Director | | | | 15,100 | | | | | 0 | | | 15,100 | | | | * | | | ||||||||
| Avid Modjtabai, Director | | | | 30,281 | | | | | 0 | | | 30,281 | | | | * | | | Ernest E. Maddock, Director | | | | 9,656(8) | | | | | 0 | | | 9,656 | | | | | | | ||||||||
| Adalio T. Sanchez, Director | | | | 12,602 | | | | | 0 | | | 12,602 | | | | * | | | Avid Modjtabai, Director | | | | 34,615 | | | | | 0 | | | 34,615 | | | | * | | | ||||||||
| William H. Schumann, III, Director | | | | 47,081(5) | | | | | 0 | | | 47,081 | | | | * | | | Adalio T. Sanchez, Director | | | | 16,936 | | | | | 0 | | | 16,936 | | | | * | | | ||||||||
| Philip R. Gallagher, Chief Executive Officer, President, Electronic Components and Director | | | | 252,001(8) | | | | | 221,510 | | | 473,511 | | | | * | | | Philip R. Gallagher, Chief Executive Officer, President, Electronic Components and Director | | | | 335,478(9) | | | | | 293,070 | | | 628,548 | | | | * | | | ||||||||
| Ken E. Arnold, SVP, Chief People Officer | | | | 36,851(9) | | | | | 31,405 | | | 68,256 | | | | * | | | Kenneth A. Jacobson, Chief Financial Officer | | | | 66,021(10) | | | | | 0 | | | 66,021 | | | | * | | | ||||||||
| Leng Jin (Max) Chan, SVP, Chief Information Officer | | | | 21,661(10) | | | | | 4,613 | | | 26,274 | | | | * | | | Ken E. Arnold, SVP, Chief People Officer | | | | 51,304(11) | | | | | 52,654 | | | 103,958 | | | | * | | | ||||||||
| Michael R. McCoy, SVP, General Counsel | | | | 40,761(11) | | | | | 17,086 | | | 57,847 | | | | * | | | Michael R. McCoy, SVP, General Counsel | | | | 57,460(12) | | | | | 34,172 | | | 91,632 | | | | * | | | ||||||||
| Thomas Liguori, Former Chief Financial Officer | | | | 36,552(12) | | | | | 74,303 | | | 110,855 | | | | * | | | Rebeca Obregon-Jimenez, SVP Strategic Business Engagements and Supplier Management | | | | 17,438(13) | | | | | 0 | | | 17,438 | | | | * | | | ||||||||
| All Directors and named executive officers as a group (15 persons)(13) | | | | 819,465 | | | | | 348,917 | | | 1,168,382 | | | | 1.2% | | | Thomas Liguori, Former Chief Financial Officer(14) | | | | 36,552(14) | | | | | 32,180 | | | 68,732 | | | | * | | | ||||||||
| All Directors and named executive officers as a group (15 persons)(15) | | | | 780,527 | | | | | 412,076 | | | 1,192,603 | | | | 1.3% | | |
| DELINQUENT SECTION 16(a) REPORTS | |
| RELATED PERSON TRANSACTIONS | |
| PROPOSAL 2: ADVISORY VOTE ON NAMED EXECUTIVE OFFICER COMPENSATION | |
| | RECOMMENDATION OF THE BOARD | | | | | | | | | |||
| | | | The Board recommends that shareholders vote FOR the advisory vote on the compensation of the Named Executive Officers as disclosed in this Proxy Statement. | | |
| Compensation Discussion and Analysis | |
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| NEOs | | | Position | |
| Philip R. Gallagher | | | Chief Executive Officer (“CEO”) and President, Electronic Components | |
| | | | ||
| Ken E. Arnold | | | Senior Vice President, Chief People Officer | |
| | | |||
Senior Vice President, General Counsel and Chief Legal Officer | | ||||
| Rebeca Obregon-Jimenez(2) | | | Senior Vice President, Strategic Business Engagements and Supplier Management | |
| Thomas Liguori(3) | | | Former Chief Financial Officer | |
| | | Fiscal 2021 | | Fiscal 2022 | | % Change | | | | Fiscal 2022 | | Fiscal 2023 | | % Change | | ||||||||||||||||||
| | | $ in millions, except per share data | | | | $ in millions, except per share data | | ||||||||||||||||||||||||||
| Sales | | | $ | 19,534.7 | | | | $ | 24,310.7 | | | 24.5% | | Sales | | | $ | 24,310.7 | | | | $ | 26,536.9 | | | 9.2% | | ||||||
| Gross profit dollars | | | $ | 2,240.6 | | | | $ | 2,965.4 | | | 32.4% | | Gross profit dollars | | | $ | 2,965.4 | | | | $ | 3,182.1 | | | 7.3% | | ||||||
| Operating income | | | $ | 281.4 | | | | $ | 939.0 | | | 233.7% | | Operating income | | | $ | 939.0 | | | | $ | 1,186.8 | | | 26.4% | | ||||||
| Adjusted operating income | | | $ | 407.0 | | | | $ | 985.6 | | | 142.1% | | Adjusted operating income | | | $ | 985.6 | | | | $ | 1,220.9 | | | 23.9% | | ||||||
| Operating income margin | | | | 1.44% | | | | | 3.86% | | | 242 bps | | Operating income margin | | | | 3.86% | | | | | 4.47% | | | 61 bps | | ||||||
| Adjusted operating income margin | | | | 2.08% | | | | | 4.05% | | | 197 bps | | Adjusted operating income margin | | | | 4.05% | | | | | 4.60% | | | 55 bps | | ||||||
| Diluted earnings per share | | | $ | 1.93 | | | | $ | 6.94 | | | 259.6% | | Diluted earnings per share | | | $ | 6.94 | | | | $ | 8.26 | | | 19.0% | | ||||||
| Adjusted diluted earnings per share | | | $ | 2.71 | | | | $ | 6.93 | | | 155.7% | | Adjusted diluted earnings per share | | | $ | 6.93 | | | | $ | 8.06 | | | 16.4% | | ||||||
| Net working capital days | | | | 74.13 | | | | | 68.98 | | | -6.9% | | Net working capital days | | | | 68.98 | | | | | 86.19 | | | 25.0% | | ||||||
| Return on Working Capital | | | | 10.01% | | | | | 20.65% | | | 1,064 bps | | Return on Working Capital | | | | 20.65% | | | | | 19.51% | | | (114) bps | |
| | | | | | | ||
| | ✓ A distribution, product, or related service company ✓ Revenues within range of Company revenues ✓ Market capitalization within range of Company market capitalization ✓ Global footprint ✓ Historical Company peer group ✓ Disclosed peer of a peer company ✓ Disclosed Company as a benchmarking peer ✓ In proxy advisors’ peer groups | | | | Arrow Electronics, Inc. Celestica Inc. CDW Corporation Flex Ltd. Genuine Parts Company Insight Enterprises, Inc. Jabil, Inc. Sanmina Corporation Seagate Technology Holdings plc TD SYNNEX Corporation TE Connectivity Ltd. W.W. Grainger, Inc. WESCO International, Inc. Western Digital Corporation | | |
| | | Fiscal 2021 ($ in billions) | | | | Fiscal 2022 ($ in billions) | | ||||||||||||||||||||||
| | | Revenue | | | | Market Capitalization | | | | Revenue | | | | Market Capitalization | | ||||||||||||||
| Peer Group Median | | | $ | 14.4 | | | | | | $ | 8.8 | | | Peer Group Median | | | $ | 17.9 | | | | | | $ | 9.3 | | | ||
| The Company | | | $ | 19.5 | | | | | | $ | 4.3 | | | The Company | | | $ | 24.3 | | | | | | $ | 3.9 | | |
| Pay Component | | | | Objectives | | | Key Features | |
| Base Salary | | | | Attract and retain executive talent in a competitive marketplace. | | | Reflects skills, contributions, and success over time in role. Reviewed annually to ensure competitiveness and alignment with individual performance. | |
| Annual Cash Incentives | | | | Link variable compensation to | | | Key financial measures used to assess performance and align Payouts | |
| Long-Term Equity Incentives | | | | Align executives with shareholders by rewarding long-term shareholder value creation. Reward stock price appreciation and tie executive wealth accumulation to long-term performance. | | | Encourages retention through multi-year vesting (three to four years) and Performance Share Units (PSUs) vest, if at all, at the end of a three-year period depending on meeting performance goals. | |
| Pay Component | | | | Brief Description | |
| Retirement Benefits | | | | • Qualified cash balance plan (Pension Plan) • Qualified defined contribution plan (401(k) Plan) • Nonqualified retirement plans | |
| Executive Benefits | | | | Limited perquisites | |
| Change of Control Agreements | | | | Individual agreements providing enhanced severance for a qualifying termination following a change of control of the Company | |
| Executive Severance Plan | | | | Plan providing severance benefits for executives, except for those covered by their employment | |
| Employee Stock Purchase Plan | | | | Qualified plan permitting Company stock purchases at a 5% discount, subject to plan limits | |
| | What the Company Does: | | | |||
| | | | Aligns Pay-for-Performance. Historically, a significant portion of total compensation depended on achieving short- and long-term financial and operational goals that were designed to increase shareholder value over time. As executives gain responsibility and seniority and exercise more direct influence over the Company’s financial and operational performance, typically base salary as a percentage of total compensation decreases and performance-based pay increases. | | | |
| | | | Focuses on Long-Term Incentive Compensation. The long-term incentive compensation program is designed to provide a meaningful portion of compensation with the goal of having executive officers think and behave like owners over the long term. Long-term incentives, in the form of equity awards, vest over periods ranging from three to four years depending on the award type. | | | |
| | | | Uses Multiple Metrics in Incentive Plans. The annual cash and | | | |
| | | | Uses Award Caps. Annual cash incentives and PSUs are capped at 200% of target to discourage excessive risk-taking. | | | |
| | | | Maintains Clawback Policy. The | | | |
| | | | Conducts Annual Compensation Risk Assessment. The Committee annually assesses the Company’s compensation programs and determines whether the Company’s policies and practices create risks that are reasonably likely to have a material adverse effect on the Company. | | | |
| | | | Maintains Stock Ownership Guidelines. The Company has stock ownership guidelines for its executive officers and, as of July | | | |
| | | | Grants Stock Options at Fair Market Value. | | | |
| | | | Maintains Compensation Committee Independence. The Compensation Committee is made up entirely of Independent Directors. | | | |
| | | | Maintains Compensation Consultant Independence. The Compensation Consultant does not provide any services to management other than its services to the Committee, and the Committee annually assesses the independence of the Compensation Consultant. | | |
| | What the Company Doesn’t Do: | | | |||
| | | | Doesn’t Provide for Excise Tax Gross-Ups. The Company’s change of control agreements do not provide for excise tax reimbursements to any of the Company’s executive officers. | | | |
| | | | Doesn’t Pay Dividends or Dividend Equivalents on Equity | | | |
| | | | Doesn’t Permit Hedging or Pledging of Company Shares. The Company’s | | | |
| | | | Doesn’t Provide Above-Market Returns. The Company does not offer preferential or above-market returns on deferred compensation. | | | |
| | | | Doesn’t Reprice Awards. Repricing of stock options and stock appreciation rights is prohibited without shareholder approval. The Company does not have a history of repricing equity awards. | | | |
| | | | Doesn’t Provide Excessive Severance Benefits or Perquisites. The Company provides only limited severance benefits and perquisites to executives. | | | |
| | | | Doesn’t Reimburse or Indemnify Against Recouped Incentive-BasedCompensation. The Company does not reimburse executive officers for recouped incentive-based compensation or indemnify or insure executive officers in connection with recoupment of incentive-based compensation under its clawback policy. | | |
| NEO | | 2021 FY End Annualized Base Salary | | 2022 FY End Annualized Base Salary | | % Change(1) | | NEO | | 2022 FY End Annual Base Salary | | 2023 FY End Annual Base Salary | | % Change(1) | | ||||||||||||||||||
| Gallagher | | | $ | 1,000,000 | | | | $ | 1,100,000 | | | 10.0% | | Gallagher | | | $ | 1,100,000 | | | | $ | 1,150,000 | | | 4.5% | | ||||||
| Liguori | | | $ | 530,000 | | | | $ | 585,000 | | | 10.4% | | Jacobson(2) | | | $ | 380,626 | | | | $ | 500,000 | | | 31.4% | | ||||||
| Arnold | | | $ | 390,000 | | | | $ | 500,000 | | | 28.2% | | Arnold | | | $ | 500,000 | | | | $ | 525,000 | | | 5.0% | | ||||||
| Chan | | | $ | 360,000 | | | | $ | 450,000 | | | 25.0% | | McCoy | | | $ | 500,000 | | | | $ | 550,000 | | | 10.0% | | ||||||
| McCoy | | | $ | 450,000 | | | | $ | 500,000 | | | 11.1% | | Obregon-Jimenez(3) | | | | — | | | | $ | 520,000 | | | — | | ||||||
| Liguori(4) | | | $ | 585,000 | | | | $ | 585,000 | | | 0.0% | |
| | Metrics | | | | Weighting | | | | Financial Performance Metrics | | | | Weighting | | | | Target Performance Goal | | | | Metrics | | | | Weighting | | | | Financial Performance Metrics | | | | Weighting | | | | Target Performance Goal | | | ||||||||||||
| | Financial Performance | | | | | | 80% | | | | | Adjusted Operating Income $ (OI$) | | | | | | 40% | | | | | $547.8 M | | | | Financial Performance | | | | | | 80% | | | | | Adjusted Operating Income $ (OI$) | | | | | | 40% | | | | | td,000.5 M | | |
| Return on Working Capital % (ROWC) | | | | | | 40% | | | | | 12.67% | | | | Return on Working Capital % (ROWC) | | | | | | 40% | | | | | 20.10% | | | |||||||||||||||||||||||
| Relative Market Share | | | | | | 20% | | | | | +50 bps | | | | Relative Market Share | | | | | | 20% | | | | | +50 bps | | | |||||||||||||||||||||||
| | Non-Financial Performance | | | | | | 20% | | | | | ESG (Team Goals) | | | | | | 50% | | | | | Meet ESG Team Goals | | | | Non-Financial Performance | | | | | | 20% | | | | | Individual Goals | | | | | | 100% | | | | | Individual contribution to the Company’s Diversity and Employee Engagement goals | | |
| Individual Goals | | | | | | 50% | | | | | Individual contribution to the Avnet Leadership Team goals | | |
| NEO | | FY 2021 | | FY 2022 | | % Change | | NEO | | FY 2022 | | FY 2023 | | % Change | | % Base Salary | | |||||||||||||||||||
| Gallagher | | | $ | 1,500,000 | | | | $ | 1,650,000 | | | 10.0% | | Gallagher | | | $ | 1,650,000 | | | | $ | 1,725,000 | | | 4.5% | | 150% | | |||||||
| Liguori | | | $ | 530,000 | | | | $ | 585,000 | | | 10.4% | | Jacobson(1) | | | $ | 170,626 | | | | $ | 442,708 | | | 159.5% | | 100% | | |||||||
| Arnold | | | $ | 273,000 | | | | $ | 350,000 | | | 28.2% | | Arnold | | | $ | 350,000 | | | | $ | 393,750 | | | 12.5% | | 75% | | |||||||
| Chan | | | $ | 155,000 | | | | $ | 225,000 | | | 45.2% | | McCoy | | | $ | 350,000 | | | | $ | 412,500 | | | 17.9% | | 75% | | |||||||
| McCoy | | | $ | 292,500 | | | | $ | 350,000 | | | 19.7% | | Obregon-Jimenez(2) | | | $ | — | | | | $ | 195,000 | | | — | | 75% | | |||||||
| Liguori(3) | | | $ | 585,000 | | | | $ | 438,750 | | | — | | 100% | |
| | Fiscal 2022 Adjusted OI$ Goals 40% Weighting | | | | Fiscal 2023 Adjusted OI$ Goals 40% Weighting | | | ||||||||||||||||||||||||
| | | | | | % Attainment | | | | Adjusted OI$ | | | | % Payout | | | | | | | | % Attainment | | | | Adjusted OI$ | | | | % Payout | | |
| | Maximum | | | | 133% | | | | $730.5 | | | | 200% | | | | Maximum | | | | 133% | | | | $1,334.2M | | | | 200% | | |
| | > Target | | | | 1% change = 1% change in attainment | | | | $547.9 — $730.4 | | | | 3% increase in payout per 1% increase in attainment | | | | > Target | | | | 1% change = 1% change in attainment | | | | $1,000.6M — $1,334.1M | | | | 3% increase in payout per 1% increase in attainment | | |
| | Target | | | | 100.0% | | | | $547.8 | | | | 100.0% | | | | Target | | | | 100.0% | | | | $1,000.5M | | | | 100.0% | | |
| | < Target | | | | 1% change = 1% change in attainment | | | | $438.3 — $547.7 | | | | 3% decrease in payout per 1% decrease in attainment | | | ||||||||||||||||
| | Threshold | | | | 80.0% | | | | $438.2 | | | | 40% | | |
| | Fiscal 2022 ROWC Goals 40% Weighting | | | ||||||||||||
| | | | | | % Attainment | | | | ROWC % | | | | % Payout | | |
| | Maximum | | | | 133% | | | | 16.89% | | | | 200% | | |
| | > Target | | | | 1% change = 1% change in attainment | | | | 12.68% — 16.88% | | | | 3% increase in payout per 1% increase in attainment | | |
| | Target | | | | 100.0% | | | | 12.67% | | | | 100.0% | | |
| | < Target | | | | 1% change = 1% change in attainment | | | | 10.15% — 12.66% | | | | 3% decrease in payout per 1% decrease in attainment | | |
| | Threshold | | | | 80.0% | | | | 10.14% | | | | 40% | | |
| | Fiscal 2023 Adjusted OI$ Goals 40% Weighting | | | ||||||||||||
| | | | | | % Attainment | | | | Adjusted OI$ | | | | % Payout | | |
| | < Target | | | | 1% change = 1% change in attainment | | | | $800.5M — $1,000.4M | | | | 3% decrease in payout per 1% decrease in attainment | | |
| | Threshold | | | | 80.0% | | | | $800.4M | | | | 40% | | |
| | Fiscal 2023 ROWC Goals 40% Weighting | | | ||||||||||||
| | | | | | % Attainment | | | | ROWC % | | | | % Payout | | |
| | Maximum | | | | 133% | | | | 26.80% | | | | 200% | | |
| | > Target | | | | 1% change = 1% change in attainment | | | | 20.11% — 26.79% | | | | 3% increase in payout per 1% increase in attainment | | |
| | Target | | | | 100.0% | | | | 20.10% | | | | 100.0% | | |
| | < Target | | | | 1% change = 1% change in attainment | | | | 16.09% — 20.09% | | | | 3% decrease in payout per 1% decrease in attainment | | |
| | Threshold | | | | 80.0% | | | | 16.08% | | | | 40% | | |
| | Fiscal 2023 Relative Market Share Goals 20% Weighting | | | ||||||||
| | | | | Market Share Improvement/ (Decline) | | | | % Payout | | | |
| | Maximum | | | | 300 bps | | | | 200% | | |
| | > Target | | | | 51-299 bps | | | | 0.40% increase in payout per increase in bps from target | | |
| | Target | | | | 50 basis points | | | | 100.0% | | |
| | < Target | | | | (269)-49 bps | | | | 0.19% decrease in payout per decrease in bps from target | | |
| | Threshold | | | | (270) bps | | | | 40% | | |
| Goal | | Weighting | | Target | | Actual | | % of Target Achieved | | Payout % of Target | | Goal | | Weighting | | Target | | Actual | | % of Target Achieved | | Payout % of Target | | ||||||||||||||||||||||||||||
| Adjusted OI$(1) | | | | 40% | | | $547.8 | | $985.6 | | | | 179.9% | | | | | 200% | | | Adjusted OI$(1) | | | | 40% | | | $1,000.5M | | $1,281.1 | | | | 128.05% | | | | | 184.14% | | | ||||||||||
| ROWC | | | | 40% | | | 12.67% | | 20.65% | | | | 163.0% | | | | | 200% | | | ROWC(1) | | | | 40% | | | 20.10% | | 19.70% | | | | 98.01% | | | | | 94.03% | | | ||||||||||
| Relative Market Share | | | | 20% | | | 50 bps | | 110 bps | | | | NA | | | | | 124% | | | Relative Market Share | | | | 20% | | | 50 bps | | 1,065 bps | | | | NA | | | | | 200% | | |
| | Non-Financial Goal | | | | Weighting | | | | Achievement | | | | Payout % of Target | | | | Non-Financial Goals | | | |||||||||||||||||||||||
| | ESG Team Goals | | | | | | 50% | | | | | | | Achieved | | | | | | | 100% | | | | | NEO | | | | Achievement | | | | Payout % of Target | | | ||||||
| | Individual Goals | | | | | | 50% | | | | | | | Achieved (1) | | | | | | | 100% | | | | | Gallagher | | | | | | 100% | | | | | | | 20% | | | |
| | Jacobson | | | | | | 100% | | | | | | | 20% | | | | |||||||||||||||||||||||||
| | Arnold | | | | | | 100% | | | | | | | 20% | | | | |||||||||||||||||||||||||
| | McCoy | | | | | | 100% | | | | | | | 20% | | | | |||||||||||||||||||||||||
| | Obregon-Jimenez | | | | | | 100% | | | | | | | 20% | | | | |||||||||||||||||||||||||
| | Liguori | | | | | | 100% | | | | | | | 20% | | | |
| | | FY22 Annual Cash Incentives Payouts | | | | FY23 Annual Cash Incentives Payouts | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | Financial (80% Weight) | | | | Non-Financial (20% Weight) | | | | Total Incentive Payout | | | | | | | | | Financial (80% Weight) | | | | Non-Financial (20% Weight) | | | | Total Incentive Payout | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NEO | | Target $ | | % of Target Earned | | $ Actual | | | | % of Target Achieved | | $ Actual | | | | % of Target | | $ Actual | | NEO | | Target $ | | % of Target Earned | | $ Actual | | | | % of Target Achieved | | $ Actual | | | | % of Target | | $ Actual | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gallagher | | | $ | 1,650,000 | | | | | 147.84% | | | | $ | 2,439,360 | | | | | | | 100% | | | | $ | 330,000 | | | | | | | 167.84% | | | | $ | 2,769,360 | | | Gallagher | | | $ | 1,725,000 | | | | | 121.02% | | | | $ | 2,087,526 | | | | | | | 100% | | | | $ | 345,000 | | | | | | | 141.02% | | | | $ | 2,432,526 | | | ||||||||||
| Liguori | | | $ | 585,000 | | | | | 147.84% | | | | $ | 864,864 | | | | | | | 100% | | | | $ | 117,000 | | | | | | | 167.84% | | | | $ | 981,864 | | | Jacobson(1) | | | $ | 442,708 | | | | | 121.02% | | | | $ | 535,970 | | | | | | | 100% | | | | $ | 82,143 | | | | | | | 139.62% | | | | $ | 618,113 | | | ||||||||||
| Arnold | | | $ | 350,000 | | | | | 147.84% | | | | $ | 517,440 | | | | | | | 100% | | | | $ | 70,000 | | | | | | | 167.84% | | | | $ | 587,440 | | | Arnold | | | $ | 393,750 | | | | | 121.02% | | | | $ | 476,501 | | | | | | | 100% | | | | $ | 78,750 | | | | | | | 141.02% | | | | $ | 555,251 | | | ||||||||||
| Chan | | | $ | 225,000 | | | | | 147.84% | | | | $ | 332,640 | | | | | | | 100% | | | | $ | 45,000 | | | | | | | 167.84% | | | | $ | 377,640 | | | McCoy | | | $ | 412,500 | | | | | 121.02% | | | | $ | 499,191 | | | | | | | 100% | | | | $ | 82,500 | | | | | | | 141.02% | | | | $ | 581,691 | | | ||||||||||
| McCoy | | | $ | 350,000 | | | | | 147.84% | | | | $ | 517,440 | | | | | | | 100% | | | | $ | 70,000 | | | | | | | 167.84% | | | | $ | 587,440 | | | Obregon-Jimenez(2) | | | $ | 195,000 | | | | | 121.02% | | | | $ | 235,982 | | | | | | | 100% | | | | $ | 39,000 | | | | | | | 141.02% | | | | $ | 274,982 | | | ||||||||||
| Liguori(3) | | | $ | 438,750 | | | | | 121.02% | | | | $ | 530,958 | | | | | | | 100% | | | | $ | 87,750 | | | | | | | 141.02% | | | | $ | 618,708 | | |
| | Equity Vehicles | | | | % of Target Value of LTIP Award | | | | Metrics | | | | Weight | | | ||||||
| | RSUs | | | | | | 50% | | | | | Time-based Vesting | | | | | | 100% | | | |
| | PSUs | | | | | | 50% | | | | | ROIC > WACC | | | | | | 50% | | | |
| Relative EPS Growth | | | | | | 50% | | | | ||||||||||||
| Relative TSR Modifier | | | | -10% to +10% | | |
| | | | | | | | | | | | | Target Value of LTIP | | Total Value % Change | | | | | | | | | | | | | | Target Value of LTIP | | Total Value % Change | | ||||||||||||||||||||
| NEO | | RSUs (#) | | Stock Options (#) | | Incentive ($) | | from FY21 | | NEO | | RSUs (#) | | PSUs (#) | | Incentive ($) | | from FY22 | | ||||||||||||||||||||||||||||||||
| Gallagher | | | | 63,100 | | | | | 194,252 | | | | $ | 5,000,000 | | | | | 42.9% | | | Gallagher | | | | 73,864 | | | | | 73,864 | | | | $ | 6,500,000 | | | | | 30.0% | | | ||||||||
| Liguori | | | | 20,192 | | | | | 62,160 | | | | $ | 1,600,000 | | | | | 6.7% | | | Jacobson(1) | | | | 14,204 | | | | | 14,205 | | | | $ | 1,250,000 | | | | | 160.4% | | | ||||||||
| Arnold | | | | 10,096 | | | | | 31,080 | | | | $ | 800,000 | | | | | 28.0% | | | Arnold | | | | 10,796 | | | | | 10,795 | | | | $ | 950,000 | | | | | 18.8% | | | ||||||||
| Chan | | | | 5,996 | | | | | 18,452 | | | | $ | 475,000 | | | | | 11.8% | | | McCoy | | | | 11,932 | | | | | 11,932 | | | | $ | 1,050,000 | | | | | 27.3% | | | ||||||||
| McCoy | | | | 10,412 | | | | | 32,052 | | | | $ | 825,000 | | | | | 22.2% | | | Obregon-Jimenez(2) | | | | — | | | | | — | | | | $ | — | | | | | — | | | ||||||||
| Liguori(3) | | | | — | | | | | — | | | | $ | — | | | | | — | | |
| ROIC > WACC | | | Threshold | | | Target | | | Maximum | | |||||||||
| Performance Achievement | | | | | >=0% | | | | | | 1.5% | | | | | | >=3.0% | | |
| Payout Percentage | | | | | 50% | | | | | | 100% | | | | | | 200% | | |
| Relative Adjusted EPS Growth | | | Threshold | | | Target | | | Maximum | | |||||||||
| Performance Achievement | | | Next to Last | | | Median | | | First | | |||||||||
| Payout Percentage | | | | | 25% | | | | | | 100% | | | | | | 200% | | |
| | Cumulative Adjusted EPS | | <$10.30 | | $10.30 | | $12.87 | | $14.48 | | ≥$16.09 | | | rTSR | | Threshold | | Target | | Maximum | | ||||||||
| | Payout Percent of Target | | 0% | | 40% | | 100% | | 150% | | 200% | | | Performance Achievement | | 13th | | 8th | | 4th | | ||||||||
| | Relative TSR Modifier | | | Modifier | | 0.9 | | 1.0 | | 1.1 | | ||||||||||||||||||
| | Percentile Rank | | ≤30%ile | | 50%ile | | ≥75%ile | | | | | ||||||||||||||||||
| | Adjustment to Initial Payout | | −20% | | No Adjustment | | +20% | | | | |
| Goal | | Target | | Actual | | % of Target Achieved | | Payout % of Target | | Goal* | | Target | | Actual | | Payout | | Weight | | Weighted Payout | | |||||||||
| Cumulative three-year EPS | | $12.87 | | $11.68 | | 90.75% | | 72.33% | | ROIC>WACC | | 1.5% | | 4.66% | | 200.00% | | 50.00% | | 100.00% | | |||||||||
| Relative TSR Modifier | | 50th Percentile | | 35th Percentile | | 71.0% | | 0.86% | | Adjusted EPS Growth | | 8th | | 7th | | 114.29% | | 50.00% | | 57.14% | | |||||||||
| Total Payout | | | | | | | | 61.84% | | rTSR Modifier | | 8th | | 12th | | | | | | 0.92x | | |||||||||
| Total Earned | | | | | | | | | | 144.57% | |
| NEO | | | Target PSUS | | | PSUs (#) Earned | | ||||||
| Gallagher | | | | | 16,995 | | | | | | 10,510 | | |
| Liguori | | | | | 18,882 | | | | | | 11,677 | | |
| Arnold | | | | | 6,609 | | | | | | 4,087 | | |
| Chan(1) | | | | | — | | | | | | — | | |
| McCoy(1) | | | | | — | | | | | | — | | |
| NEO(1) | | | Target PSUS | | | PSUs (#) Earned | | ||||||
| Gallagher | | | | | 24,621 | | | | | | 35,594 | | |
| Jacobson | | | | | 4,735 | | | | | | 6,845 | | |
| Arnold | | | | | 3,598 | | | | | | 5,201 | | |
| McCoy | | | | | 3,977 | | | | | | 5,750 | | |
| CEO | | | 5x base salary | |
| CFO and General Counsel | | | 3x base salary | |
| Other Officers | | | 1x base salary | |
| COMPENSATION AND LEADERSHIP DEVELOPMENT COMMITTEE REPORT | |
| COMPENSATION OF EXECUTIVE OFFICERS | |
| Name and Principal Position (a) | | Year (b) | | Salary ($) (c) | | Bonus ($) (d) | | Stock Awards ($)(1) (e) | | Option Awards ($)(2) (f) | | Non-Equity Incentive Plan Compensation ($) (g) | | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)(3) (h) | | All Other Compensation ($)(4) (i) | | Total ($) (j) | | Name and Principal Position (a) | | Year (b) | | Salary ($) (c) | | Bonus ($)(1) (d) | | Stock Awards ($)(2) (e) | | Option Awards ($)(3) (f) | | Non-Equity Incentive Plan Compensation ($) (g) | | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)(4) (h) | | All Other Compensation ($)(5) (i) | | Total ($) (j) | | ||||||||||||||||||
| Philip R. Gallagher | | 2022 | | 1,100,000 | | | | 2,380,763 | | 1,835,681 | | 2,769,360 | | 17,711 | | 26,385 | | 8,129,900 | | Philip R. Gallagher | | 2023 | | 1,150,000 | | | | 6,078,268 | | — | | 2,432,526 | | 27,780 | | 28,253 | | 9,716,827 | | ||||||||||||||||||
| Chief Executive Officer | | 2021 | | 958,962 | | | | 1,654,457 | | 1,203,602 | | 2,287,811 | | 23,145 | | 24,010 | | 6,151,987 | | Chief Executive Officer | | 2022 | | 1,100,000 | | | | 2,380,763 | | 1,835,681 | | 2,769,360 | | 17,711 | | 26,385 | | 8,129,900 | | ||||||||||||||||||
| | | 2020 | | 565,000 | | | | 953,719 | | 236,379 | | 338,379 | | 103,025 | | 24,845 | | 2,221,347 | | | | 2021 | | 958,962 | | | | 1,654,457 | | 1,203,602 | | 2,287,811 | | 23,145 | | 24,010 | | 6,151,987 | | ||||||||||||||||||
| Thomas Liguori(5) | | 2022 | | 585,000 | | | | 761,844 | | 587,412 | | 981,864 | | 111,328 | | 22,141 | | 3,049,589 | | Kenneth Jacobson | | 2023 | | 482,081 | | | | 1,168,888 | | | | 618,113 | | 16,493 | | 26,474 | | 2,312,049 | | ||||||||||||||||||
| Former Chief Financial Officer | | 2021 | | 530,000 | | | | 709,655 | | 519,347 | | 858,865 | | 67,297 | | 24,608 | | 2,709,772 | | Chief Financial Officer | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||
| | | 2020 | | 530,000 | | | | 1,059,638 | | 262,640 | | 317,417 | | 74,018 | | 19,122 | | 2,262,835 | | Ken E. Arnold | | 2023 | | 525,000 | | | | 888,362 | | — | | 555,251 | | 77,903 | | 19,863 | | 2,066,379 | | ||||||||||||||||||
| Ken E. Arnold | | 2022 | | 500,000 | | | | 380,922 | | 293,706 | | 587,440 | | 34,433 | | 18,053 | | 1,814,554 | | Chief People Officer | | 2022 | | 500,000 | | | | 380,922 | | 293,706 | | 587,440 | | 34,433 | | 18,053 | | 1,814,554 | | ||||||||||||||||||
| Chief People Officer | | 2021 | | 389,246 | | | | 295,680 | | 216,410 | | 440,470 | | 42.850 | | 17,725 | | 1,402,381 | | | | 2021 | | 389,246 | | | | 295,680 | | 216,410 | | 440,470 | | 42.850 | | 17,725 | | 1,402,381 | | ||||||||||||||||||
| Max Chan | | 2022 | | 450,000 | | | | 226,229 | | 174,371 | | 377,640 | | 7,292 | | 20,280 | | 1,255,812 | | Michael R. McCoy | | 2023 | | 550,000 | | | | 981,885 | | — | | 581,691 | | 31,956 | | 187,613 | | 2,333,145 | | ||||||||||||||||||
| Chief Information Officer | | 2021 | | 360,000 | | | | 400,915 | | — | | 310,000 | | 27,361 | | 3,557 | | 1,101,833 | | General Counsel and | | 2022 | | 500,000 | | | | 392,845 | | 302,891 | | 587,440 | | 19,483 | | 202,270 | | 2,004,929 | | ||||||||||||||||||
| Michael R. McCoy | | 2022 | | 500,000 | | | | 392,845 | | 302,891 | | 587,440 | | 19,483 | | 202,270 | | 2,004,929 | | Chief Legal Officer | | 2021 | | 437,736 | | | | 319,407 | | 233,720 | | 437,230 | | 27,585 | | 106,153 | | 1,561,831 | | ||||||||||||||||||
| General Counsel and | | 2021 | | 437,736 | | | | 319,407 | | 233,720 | | 437,230 | | 27,585 | | 106,153 | | 1,561,831 | | Rebeca Obregon-Jimenez(6) | | 2023 | | 262,000 | | 649,375 | | 524,332 | | — | | 274,982 | | — | | 10,140 | | 1,720,829 | | ||||||||||||||||||
| Chief Legal Officer | | | | | | | | | | | | | | | | | | | SVP, Strategic Business | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
| Engagements and | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||
| Supplier Management | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||
| Thomas Liguori(7) | | 2023 | | 438,750 | | | | — | | — | | 618,708 | | 128,718 | | 22,327 | | 1,208,503 | | ||||||||||||||||||||||||||||||||||||||
| Former Chief Financial Officer | | 2022 | | 585,000 | | | | 761,844 | | 587,412 | | 981,864 | | 111,328 | | 22,141 | | 3,049,589 | | ||||||||||||||||||||||||||||||||||||||
| | | 2021 | | 530,000 | | | | 709,655 | | 519,347 | | 858,865 | | 67,297 | | 24,608 | | 2,709,772 | |
| Plan Category | | | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | | | Weighted- Average Exercise Price of Outstanding Options, Warrants and Rights | | | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | | |||||||||
| Equity compensation plans approved by shareholders | | | | | | | | | $ | | | | | | | |
| | | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1) | | Estimated Future Payouts Under Equity Incentive Plan Awards(#)(2) | | | All Other Stock Awards: Number of Shares of Stock or Units (#)(2)(i) | | All Other Option Awards: Number of Securities Underlying Options (#)(2)(j) | | Exercise or Base Price of Option Awards ($/Sh) (k) | | Grant Date Fair Value of Stock and Options Awards (l) | | | | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1) | | Estimated Future Payouts Under Equity Incentive Plan Awards(#)(2) | | | All Other Stock Awards: Number of Shares of Stock or Units (#)(2)(i) | | All Other Option Awards: Number of Securities Underlying Options (#)(2)(j) | | Exercise or Base Price of Option Awards ($/Sh) (k) | | Grant Date Fair Value of Stock and Options Awards (l) | | ||||||||||||||||||||||||||||||||||||
| Name (a) | | Grant Date (b) | | Threshold ($) (c) | | Target ($) (d) | | Maximum ($) (e) | | Threshold (#) (f) | | Target (#) (g) | | Maximum (#) (h) | | Name (a) | | Grant Date (b) | | Threshold ($) (c) | | Target ($) (d) | | Maximum ($) (e) | | Threshold (#) (f) | | Target (#) (g) | | Maximum (#) (h) | | ||||||||||||||||||||||||||||||||||||||
| Philip R. Gallagher | | 8/23/2021 | | 528,000 | | 1,650,000 | | 3,300,000 | | — | | — | | — | | — | | — | | — | | — | | Philip R. Gallagher | | 8/30/2022 | | 552,000 | | 1,725,000 | | 3,450,000 | | — | | — | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | | | | | | | — | | 194,252 | | 39.62 | | 1,835,681 | | | | 8/30/2022 | | — | | — | | — | | — | | — | | — | | 73,864 | | — | | — | | 3,080,867 | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | — | | — | | — | | 63,100 | | — | | — | | 2,380,763 | | | | 8/30/2022 | | — | | — | | — | | 24,929 | | 73,864 | | 147,728 | | — | | — | | — | | 2,997,401 | | ||||||||||||||||||||||
| Thomas Liguori | | 8/23/2021 | | 187,200 | | 585,000 | | 1,170,000 | | — | | — | | — | | — | | — | | — | | — | | Kenneth Jacobson | | 8/30/2022 | | 150,624 | | 442,708 | | 885,416 | | — | | — | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | | | | | | | — | | 62,160 | | 39.62 | | 587,412 | | | | 8/30/2022 | | — | | — | | — | | — | | — | | — | | 14,204 | | — | | — | | 592,449 | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | — | | — | | — | | 20,192 | | — | | | | 761,844 | | | | 8/30/2022 | | — | | — | | — | | 4,794 | | 14,205 | | 28,410 | | — | | — | | — | | 576,439 | | ||||||||||||||||||||||
| Ken E. Arnold | | 8/23/2021 | | 112,000 | | 350,000 | | 700,000 | | — | | — | | — | | — | | — | | — | | — | | Ken E. Arnold | | 8/30/2022 | | 126,000 | | 393,750 | | 787,500 | | — | | — | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | — | | — | | — | | — | | 31,080 | | 39.62 | | 293,706 | | | | 8/30/2022 | | — | | — | | — | | — | | — | | — | | 10,796 | | — | | — | | 450,301 | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | — | | — | | — | | 10,096 | | — | | — | | 380,922 | | | | 8/30/2022 | | — | | — | | — | | 3,643 | | 10,795 | | 21,590 | | — | | — | | — | | 438,061 | | ||||||||||||||||||||||
| Max Chan | | 8/23/2021 | | 72,000 | | 225,000 | | 450,000 | | — | | — | | — | | — | | — | | — | | — | | Michael R. McCoy | | 8/30/2022 | | 132,000 | | 412,500 | | 825,000 | | — | | — | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | — | | — | | — | | — | | 18,452 | | 39.62 | | 174,371 | | | | 8/30/2022 | | — | | — | | — | | — | | — | | — | | 11,932 | | — | | — | | 497,684 | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | — | | — | | — | | 5,996 | | — | | — | | 226,229 | | | | 8/30/2022 | | — | | — | | — | | 4,027 | | 11,932 | | 23,864 | | — | | — | | — | | 484,201 | | ||||||||||||||||||||||
| Michael R. McCoy | | 8/23/2021 | | 112,000 | | 350,000 | | 700,000 | | — | | — | | — | | — | | — | | — | | — | | Rebeca Obregon-Jimenez(3) | | 12/30/2022 | | 62,400 | | 195,000 | | 390,000 | | — | | — | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | | | | | | | — | | 32,052 | | 39.62 | | 302,891 | | | | 12/30/2022 | | — | | — | | — | | — | | — | | — | | 13,224 | | — | | — | | 524,332 | | ||||||||||||||||||||||
| | | 8/23/2021 | | — | | — | | — | | — | | — | | — | | 10,412 | | — | | — | | 392,845 | | | | 12/30/2022 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| Thomas Liguori | | 8/30/2022 | | 140,400 | | 438,750 | | 877,500 | | — | | — | | — | | — | | — | | — | | — | | ||||||||||||||||||||||||||||||||||||||||||||||
| | | 8/30/2022 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | ||||||||||||||||||||||||||||||||||||||||||||||
| | | 8/30/2022 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Type of Awards Made in Fiscal | | | Vesting Schedule | |
| Restricted Stock Units (RSUs) | | | 25% each on the first business day in January of through | |
| | | |
| | | Option Awards | | Stock Awards | | | | Option Awards | | Stock Awards | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Name (a) | | Option Grant Date | | Number of Securities Underlying Unexercised Options (#) Exercisable (b) | | Number of Securities Underlying Unexercised Options (#) Unexercisable (c) | | Option Exercise Price ($) (e) | | Option Expiration Date (f) | | Stock Award Grant Date | | Number of Shares or Units of Stock That Have Not Vested (RSUs) (#) (g) | | Market Value of Shares or Units of Stock That Have Not Vested ($) (h) | | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (PSUs) (#) (i) | | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (j) | | Name (a) | | Option Grant Date | | Number of Securities Underlying Unexercised Options (#) Exercisable (b) | | Number of Securities Underlying Unexercised Options (#) Unexercisable (c) | | Option Exercise Price ($) (e) | | Option Expiration Date (f) | | Stock Award Grant Date | | Number of Shares or Units of Stock That Have Not Vested (RSUs) (#) (g) | | Market Value of Shares or Units of Stock That Have Not Vested ($) (h) | | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (PSUs) (#) (i) | | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (j) | | ||||||||||||||||||||
| Philip R. Gallagher | | 8/08/2013 | | 32,740 | | — | | 39.04 | | 8/07/2023 | | — | | — | | — | | — | | — | | Philip R. Gallagher | | 8/07/2014 | | 19,532 | | — | | 40.88 | | 8/06/2024 | | — | | — | | — | | — | | — | | ||||||||||||||||||||
| | | 8/07/2014 | | 19,532 | | — | | 40.88 | | 8/06/2024 | | — | | — | | — | | — | | — | | | | 8/10/2017 | | 25,068 | | — | | 36.80 | | 8/09/2027 | | — | | — | | — | | — | | — | | ||||||||||||||||||||
| | | 8/10/2017 | | 25,068 | | — | | 36.80 | | 8/09/2027 | | — | | — | | — | | — | | — | | | | 8/28/2018 | | 23,920 | | — | | 48.62 | | 8/27/2028 | | — | | — | | — | | — | | — | | ||||||||||||||||||||
| | | 8/28/2018 | | 17,940 | | 5,980 | | 48.62 | | 8/27/2028 | | — | | — | | — | | — | | — | | | | 8/14/2019 | | 23,925 | | 7,975 | | 39.72 | | 8/13/2029 | | 11/17/2020 | | 14,891 | | 751,251 | | — | | — | | ||||||||||||||||||||
| | | 8/14/2019 | | 15,950 | | 15,950 | | 39.72 | | 8/13/2029 | | 8/14/2019 | | 2,124 | | 89,781 | | — | | — | | | | 11/17/2020 | | 95,524 | | 95,524 | | 29.38 | | 11/16/2030 | | 8/23/2021 | | 31,550 | | 1,591,698 | | — | | — | | ||||||||||||||||||||
| | | 11/17/2020 | | 47,762 | | 143,286 | | 29.38 | | 11/16/2030 | | 11/17/2020 | | 29,782 | | 1,258,885 | | — | | — | | | | 8/23/2021 | | 48,563 | | 145,689 | | 39.62 | | 8/22/2031 | | 8/30/2022 | | 55,398 | | 2,794,829 | | 84,837 | | 4,280,027 | | ||||||||||||||||||||
| | | 8/23/2021 | | — | | 194,252 | | 39.62 | | 8/22/2031 | | 8/23/2021 | | 47,325 | | 2,000,428 | | — | | — | | Kenneth Jacobson | | — | | — | | — | | — | | — | | 8/19/2020 | | 3,639 | | 183,588 | | — | | — | | ||||||||||||||||||||
| Thomas Liguori | | 1/29/2018 | | 10,032 | | — | | 43.47 | | 1/28/2028 | | — | | — | | — | | — | | — | | | | — | | — | | — | | — | | — | | 8/23/2021 | | 6,058 | | 305,626 | | — | | — | | ||||||||||||||||||||
| | | 8/28/2018 | | 16,611 | | 5,537 | | 48.62 | | 8/27/2028 | | — | | — | | — | | — | | — | | | | — | | — | | — | | — | | — | | 8/30/2022 | | 10,653 | | 537,444 | | 16,315 | | 823,092 | | ||||||||||||||||||||
| | | 8/14/2019 | | 17,722 | | 17,722 | | 39.72 | | 8/13/2029 | | 8/14/2019 | | 2,360 | | 99,757 | | — | | — | | Ken E. Arnold | | 2/18/2019 | | 7,908 | | — | | 44.12 | | 2/17/2029 | | — | | — | | — | | — | | — | | ||||||||||||||||||||
| | | 11/16/2020 | | 20,161 | | 60,483 | | 29.85 | | 11/15/2030 | | 11/16/2020 | | 12,562 | | 530,996 | | — | | — | | | | 8/14/2019 | | 9,303 | | 3,101 | | 39.72 | | 8/13/2029 | | 11/16/2020 | | 2,617 | | 132,028 | | — | | — | | ||||||||||||||||||||
| | | 8/23/2021 | | — | | 62,160 | | 39.62 | | 8/22/2031 | | 8/23/2021 | | 15,144 | | 640,137 | | — | | — | | | | 11/16/2020 | | 16,802 | | 16,802 | | 29.85 | | 11/15/2030 | | 8/23/2021 | | 5,048 | | 254,672 | | — | | — | | ||||||||||||||||||||
| Ken E. Arnold | | 2/18/2019 | | 5,931 | | 1,977 | | 44.12 | | 2/17/2029 | | 2/18/2019 | | 566 | | 23,925 | | — | | — | | | | 8/23/2021 | | 7,770 | | 23,310 | | 39.62 | | 8/22/2031 | | 8/30/2022 | | 8,097 | | 408,494 | | 12,398 | | 625,479 | | ||||||||||||||||||||
| | | 8/14/2019 | | 6,202 | | 6,202 | | 39.72 | | 8/13/2029 | | 8/14/2019 | | 826 | | 34,915 | | — | | — | | Michael R. McCoy | | — | | — | | — | | — | | — | | 4/01/2020 | | 1,014 | | 51,156 | | — | | — | | ||||||||||||||||||||
| | | 11/16/2020 | | 8,401 | | 25,203 | | 29.85 | | 11/15/2030 | | 11/16/2020 | | 5,234 | | 221,241 | | — | | — | | | | — | | — | | — | | — | | — | | 11/16/2020 | | 2,827 | | 142,622 | | — | | — | | ||||||||||||||||||||
| | | 8/23/2021 | | — | | 31,080 | | 39.62 | | 8/22/2031 | | 08/23/2021 | | 7,572 | | 320,068 | | — | | — | | | | 11/16/2020 | | 18,146 | | 18,146 | | 29.85 | | 11/15/2030 | | 8/23/2021 | | 5,206 | | 262,643 | | — | | — | | ||||||||||||||||||||
| Max Chan | | — | | — | | — | | — | | — | | 8/14/2019 | | 1,888 | | 79,806 | | — | | — | | | | 8/23/2021 | | 8,013 | | 24,039 | | 39.62 | | 8/22/2031 | | 8/30/2022 | | 8,949 | | 451,477 | | 13,705 | | 691,417 | | ||||||||||||||||||||
| | | — | | — | | — | | — | | — | | 8/19/2020 | | 6,368 | | 269,175 | | — | | — | | Rebeca Obregon-Jimenez | | 12/30/2022 | | — | | — | | — | | — | | 12/30/2022 | | 9,918 | | 500,363 | | — | | — | | ||||||||||||||||||||
| | | — | | — | | — | | — | | — | | 1/25/2021 | | 1,434 | | 60,615 | | — | | — | | Thomas Liguori | | 1/29/2018 | | 10,032 | | — | | 43.47 | | 03/31/2028 | | — | | — | | — | | — | | — | | ||||||||||||||||||||
| | | 8/23/2021 | | — | | 18,452 | | 39.62 | | 8/22/2031 | | 08/23/2021 | | 4,497 | | 190,088 | | — | | — | | | | 8/28/2018 | | 22,148 | | — | | 48.62 | | 03/31/2028 | | — | | — | | — | | — | | — | | ||||||||||||||||||||
| Michael R. McCoy | | — | | — | | — | | — | | — | | 8/14/2019 | | 1,385 | | 58,544 | | — | | — | | | | 8/14/2019 | | — | | 8,861 | | 39.72 | | 03/31/2028 | | — | | — | | — | | — | | — | | ||||||||||||||||||||
| | | — | | — | | — | | — | | — | | 4/01/2020 | | 2,028 | | 85,724 | | — | | — | | | | 11/16/2020 | | — | | 40,322 | | 29.85 | | 03/31/2028 | | 11/16/2020 | | 6,281 | | 316,876 | | — | | — | | ||||||||||||||||||||
| | | 11/16/2020 | | 9,073 | | 27,219 | | 29.85 | | 11/15/2030 | | 11/16/2020 | | 5,654 | | 238,995 | | — | | — | | | | 8/23/2021 | | — | | 46,620 | | 39.62 | | 03/31/2028 | | 8/23/2021 | | 10,096 | | 509,343 | | — | | — | | ||||||||||||||||||||
| | | 8/23/2021 | | — | | 32,052 | | 39.62 | | 8/22/2031 | | 08/23/2021 | | 7,809 | | 330,086 | | — | | — | |
| | | Option Awards | | Stock Awards | | | | Option Awards | | Stock Awards | | ||||||||||||||||||||||||||||||||||||||||
| Name (a) | | Number of Shares Acquired on Exercise (#) (b) | | Value Realized on Exercise ($) (c) | | Number of Shares Acquired on Vesting (#) (d) | | Value Realized on Vesting ($) (e) | | Name (a) | | Number of Shares Acquired on Exercise (#) (b) | | Value Realized on Exercise ($) (c) | | Number of Shares Acquired on Vesting (#) (d) | | Value Realized on Vesting ($) (e) | | ||||||||||||||||||||||||||||||||
| Philip R. Gallagher | | | | — | | | | | — | | | | | 45,035 | | | | | 1,896,354 | | | Philip R. Gallagher | | | | 32,740 | | | | | 75,747 | | | | | 51,256 | | | | | 2,128,662 | | | ||||||||
| Thomas Liguori | | | | — | | | | | — | | | | | 44,369 | | | | | 1,871,814 | | | Kenneth Jacobson | | | | — | | | | | — | | | | | 12,737 | | | | | 528,968 | | | ||||||||
| Ken E. Arnold | | | | — | | | | | — | | | | | 11,263 | | | | | 478,132 | | | Ken E. Arnold | | | | — | | | | | — | | | | | 9,232 | | | | | 383,405 | | | ||||||||
| Max Chan | | | | — | | | | | — | | | | | 8,527 | | | | | 353,785 | | | Michael R. McCoy | | | | — | | | | | — | | | | | 10,812 | | | | | 449,022 | | | ||||||||
| Michael R. McCoy | | | | — | | | | | — | | | | | 8,729 | | | | | 362,166 | | | Rebeca Obregon-Jimenez | | | | — | | | | | — | | | | | 3,306 | | | | | 137,298 | | | ||||||||
| Thomas Liguori | | | | 82,445 | | | | | 1,050,163 | | | | | 13,689 | | | | | 568,504 | | |
| Name (a) | | Plan Name (b) | | Number of Years Credited Service (#)(1) (c) | | Present Value of Accumulated Benefit ($)(d) | | Payments During Last Fiscal Year ($) (e) | | Name (a) | | Plan Name (b) | | Number of Years Credited Service (#)(1) (c) | | Present Value of Accumulated Benefit ($)(d) | | Payments During Last Fiscal Year ($) (e) | | ||||||||
| Philip R. Gallagher | | Pension Plan | | 37.6 | | 121,242 | | — | | Philip R. Gallagher | | Pension Plan | | 38.6 | | 149,022 | | — | | ||||||||
| | | Nonqualified Retirement Plans(2) | | 38.6 | | 2,428,259 | | 343,716 | | | | Nonqualified Retirement Plans(2) | | 39.6 | | — | | 2,500,900 | | ||||||||
| Thomas Liguori | | Pension Plan | | 3.0 | | 89,349 | | — | | Kenneth Jacobson | | Pension Plan | | 8.5 | | 99,578 | | — | | ||||||||
| | | Restoration Plan | | 3.0 | | 163,294 | | — | | | | Restoration Plan | | 8.5 | | 69,249 | | — | | ||||||||
| Ken E. Arnold | | Pension Plan | | 23.5 | | 352,617 | | — | | Ken E. Arnold | | Pension Plan | | 24.5 | | 380,082 | | — | | ||||||||
| | | Restoration Plan | | 5.5 | | 60,250 | | — | | | | Restoration Plan | | 6.5 | | 110,688 | | — | | ||||||||
| Max Chan | | Pension Plan | | 5.9 | | 77,433 | | — | | Michael R. McCoy | | Pension Plan | | 11.5 | | 155,241 | | — | | ||||||||
| | | Restoration Plan | | 5.9 | | 44,085 | | — | | | | Restoration Plan | | 8.5 | | 75,882 | | — | | ||||||||
| Michael R. McCoy | | Pension Plan | | 10.5 | | 149,860 | | — | | Thomas Liguori | | Pension Plan | | 4.0 | | 107,552 | | — | | ||||||||
| | | Restoration Plan | | 7.5 | | 49,307 | | — | | | | Restoration Plan | | 4.0 | | 273,809 | | — | |
| Name (a) | | | Executive Contributions in Last FY ($) (b) | | | Registrant Contributions in Last FY ($) (c) | | | Aggregate Earnings/ (Loss) in Last FY ($) (d) | | | Aggregate Withdrawals/ Distributions ($) (e) | | | Aggregate Balance at Last FYE ($) (f) | | |||||||||||||||
| Philip R. Gallagher | | | | | — | | | | | | — | | | | | | 12,844 | | | | | | 629,339 | | | | | | — | | |
| | | Death ($) | | Disability ($) | | Company Termination w/o Cause ($) | | Change of Control ($) | | Retirement ($) | | | | Death ($) | | Disability ($) | | Company Termination w/o Cause ($) | | Change of Control ($) | | Retirement ($) | | ||||||||||
| Philip R. Gallagher | | | | | | | | | | | | Philip R. Gallagher | | | | | | | | | | | | ||||||||||
| Severance(1) | | — | | — | | 2,750,000 | | 8,222,500 | | — | | Severance(1) | | — | | — | | 2,875,000 | | 8,596,250 | | — | | ||||||||||
| Settlement of previously vested stock options | | 926,346 | | 926,346 | | 926,346 | | 926,346 | | 926,346 | | Settlement of previously vested stock options | | 3,368,216 | | 3,368,216 | | 3,368,216 | | 3,368,216 | | 3,368,216 | | ||||||||||
| Settlement of unvested stock options | | — | | 2,402,398 | | 1,887,629 | | 2,402,398 | | 1,887,629 | | Settlement of unvested stock options(4) | | — | | 3,676,074 | | 3,676,074 | | 3,676,074 | | 3,676,074 | | ||||||||||
| Settlement of RSUs(2)(4) | | 3,349,094 | | 1,348,666 | | 1,348,666 | | 3,349,094 | | 1,348,666 | | Settlement of RSUs(2)(4) | | 5,137,778 | | 2,342,949 | | 2,342,949 | | 5,137,778 | | 2,342,949 | | ||||||||||
| Settlement of PSUs(3)(4) | | 444,258 | | 444,258 | | 444,258 | | 444,258 | | 444,258 | | Settlement of PSUs(3) | | 1,426,676 | | — | | — | | 4,280,027 | | — | | ||||||||||
| Welfare benefits | | — | | — | | — | | 76,350 | | — | | Welfare benefits | | — | | — | | — | | 79,063 | | — | | ||||||||||
| Life insurance benefit | | 500,000 | | — | | — | | — | | — | | Life insurance benefit | | 500,000 | | — | | — | | — | | — | | ||||||||||
| Pension | | 124,663 | | 124,663 | | 124,663 | | 124,663 | | 124,663 | | Pension | | 153,942 | | 153,942 | | 153,942 | | 153,942 | | 153,942 | | ||||||||||
| Nonqualified retirement plans(5) | | 7,738,720 | | 2,428,259 | | 2,428,259 | | 2,428,259 | | 2,428,259 | | Nonqualified retirement plans(5) | | 7,165,052 | | — | | — | | — | | — | | ||||||||||
| Thomas Liguori | | | | | | | | | | | | ||||||||||||||||||||||
| Severance(1) | | — | | — | | 1,566,864 | | 3,498,300 | | — | | ||||||||||||||||||||||
| Settlement of previously vested stock options | | 295,591 | | 295,591 | | 295,591 | | 295,591 | | 295,591 | | ||||||||||||||||||||||
| Settlement of unvested stock options | | — | | — | | — | | 961,114 | | — | | ||||||||||||||||||||||
| Settlement of RSUs(2) | | 1,270,890 | | — | | — | | 1,270,890 | | — | | ||||||||||||||||||||||
| Settlement of PSUs(3) | | 493,587 | | 493,587 | | — | | 493,587 | | — | | ||||||||||||||||||||||
| Welfare benefits | | — | | — | | 14,604 | | 68,272 | | — | | ||||||||||||||||||||||
| Life insurance benefit | | 500,000 | | — | | — | | — | | — | | ||||||||||||||||||||||
| Pension | | 89,883 | | 89,883 | | 89,883 | | 89,883 | | 89,883 | | ||||||||||||||||||||||
| Restoration Plan | | 164,270 | | 164,270 | | 164,270 | | 164,270 | | 164,270 | | ||||||||||||||||||||||
| Ken E. Arnold | | | | | | | | | | | | ||||||||||||||||||||||
| Severance(1) | | — | | — | | 850,000 | | 2,541,500 | | — | | ||||||||||||||||||||||
| Settlement of previously vested stock options | | 120,155 | | 120,155 | | 120,155 | | 120,155 | | 120,155 | | ||||||||||||||||||||||
| Settlement of unvested stock options | | — | | 411,198 | | 328,837 | | 411,198 | | 328,837 | | ||||||||||||||||||||||
| Settlement of RSUs(2)(4) | | 600,149 | | 280,081 | | 280,081 | | 600,149 | | 280,081 | | ||||||||||||||||||||||
| Settlement of PSUs(3)(4) | | 172,757 | | 172,757 | | 172,757 | | 172,757 | | 172,757 | | ||||||||||||||||||||||
| Welfare benefits | | — | | — | | — | | 73,579 | | — | | ||||||||||||||||||||||
| Life insurance benefit | | 500,000 | | — | | — | | — | | — | | ||||||||||||||||||||||
| Pension | | 370,823 | | 370,823 | | 370,823 | | 370,823 | | 370,823 | | ||||||||||||||||||||||
| Restoration Plan | | 63,361 | | 63,361 | | 63,361 | | 63,361 | | 63,361 | |
| | | Death ($) | | Disability ($) | | Company Termination w/o Cause ($) | | Change of Control ($) | | Retirement ($) | | | | Death ($) | | Disability ($) | | Company Termination w/o Cause ($) | | Change of Control ($) | | Retirement ($) | | ||||||||||
| Max Chan | | | | | | | | | | | | Kenneth Jacobson | | | | | | | | | | | | ||||||||||
| Severance(1) | | — | | — | | 675,000 | | 2,018,250 | | — | | Severance(1) | | — | | — | | 1,000,000 | | 2,990,000 | | — | | ||||||||||
| Settlement of previously vested stock options | | — | | — | | — | | — | | — | | Settlement of previously vested stock options | | — | | — | | — | | — | | — | | ||||||||||
| Settlement of unvested stock options | | — | | — | | — | | 48,898 | | — | | Settlement of unvested stock options | | — | | — | | — | | — | | — | | ||||||||||
| Settlement of RSUs(2) | | 599,684 | | — | | — | | 599,684 | | — | | Settlement of RSUs(2) | | 1,026,658 | | — | | — | | 1,026,658 | | — | | ||||||||||
| Settlement of PSUs | | — | | — | | — | | — | | — | | Settlement of PSUs(3) | | 274,364 | | 274,364 | | — | | 823,092 | | — | | ||||||||||
| Welfare benefits | | — | | — | | — | | 78,033 | | — | | Welfare benefits | | — | | — | | — | | 88,765 | | — | | ||||||||||
| Life insurance benefit | | 500,000 | | — | | — | | — | | — | | Life insurance benefit | | 500,000 | | — | | — | | — | | — | | ||||||||||
| Pension | | 86,950 | | 86,950 | | 86,950 | | 86,950 | | 86,950 | | Pension | | 128,568 | | 128,568 | | 128,568 | | 128,568 | | 128,568 | | ||||||||||
| Restoration Plan | | 49,504 | | 49,504 | | 49,504 | | 49,504 | | 49,504 | | Restoration Plan | | 89,409 | | 89,409 | | 89,409 | | 89,409 | | 89,409 | | ||||||||||
| Michael R. McCoy | | | | | | | | | | | | Ken E. Arnold | | | | | | | | | | | | ||||||||||
| Severance(1) | | — | | — | | 850,000 | | 2,541,500 | | — | | Severance(1) | | — | | — | | 918,750 | | 2,747,063 | | — | | ||||||||||
| Settlement of previously vested stock options | | 112,687 | | 112,687 | | 112,687 | | 112,687 | | 112,687 | | Settlement of previously vested stock options | | 580,149 | | 580,149 | | 580,149 | | 580,149 | | 580,149 | | ||||||||||
| Settlement of unvested stock options | | — | | — | | — | | 422,998 | | — | | Settlement of unvested stock options(4) | | — | | 631,842 | | 631,842 | | 631,842 | | 631,842 | | ||||||||||
| Settlement of RSUs(2) | | 713,349 | | — | | — | | 713,349 | | — | | Settlement of RSUs(2)(4) | | 795,194 | | 386,700 | | 386,700 | | 795,194 | | 386,700 | | ||||||||||
| Settlement of PSUs | | — | | — | | — | | — | | — | | Settlement of PSUs(3) | | 208,493 | | — | | — | | 625,479 | | — | | ||||||||||
| Welfare benefits | | — | | — | | — | | 68,308 | | — | | Welfare benefits | | — | | — | | — | | 76,834 | | — | | ||||||||||
| Life insurance benefit | | 500,000 | | — | | — | | — | | — | | Life insurance benefit | | 500,000 | | — | | — | | — | | — | | ||||||||||
| Pension | | 173,716 | | 173,716 | | 173,716 | | 173,716 | | 173,716 | | Pension | | 407,353 | | 407,353 | | 407,353 | | 407,353 | | 407,353 | | ||||||||||
| Restoration Plan | | 57,156 | | 57,156 | | 57,156 | | 57,156 | | 57,156 | | Restoration Plan | | 118,630 | | 118,630 | | 118,630 | | 118,630 | | 118,630 | | ||||||||||
| Michael R. McCoy | | | | | | | | | | | | ||||||||||||||||||||||
| Severance(1) | | — | | — | | 962,500 | | 2,877,875 | | — | | ||||||||||||||||||||||
| Settlement of previously vested stock options | | 460,589 | | 460,589 | | 460,589 | | 460,589 | | 460,589 | | ||||||||||||||||||||||
| Settlement of unvested stock options | | — | | — | | — | | 634,150 | | — | | ||||||||||||||||||||||
| Settlement of RSUs(2) | | 907,898 | | — | | — | | 907,898 | | — | | ||||||||||||||||||||||
| Settlement of PSUs(3) | | 230,472 | | 230,472 | | — | | 691,417 | | — | | ||||||||||||||||||||||
| Welfare benefits | | — | | — | | — | | 95,088 | | — | | ||||||||||||||||||||||
| Life insurance benefit | | 500,000 | | — | | — | | — | | — | | ||||||||||||||||||||||
| Pension | | 195,083 | | 195,083 | | 195,083 | | 195,083 | | 195,083 | | ||||||||||||||||||||||
| Restoration Plan | | 95,356 | | 95,356 | | 95,356 | | 95,356 | | 95,356 | | ||||||||||||||||||||||
| Rebeca Obregon-Jimenez | | | | | | | | | | | | ||||||||||||||||||||||
| Severance(1) | | — | | — | | 910,000 | | — | | — | | ||||||||||||||||||||||
| Settlement of previously vested stock options | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| Settlement of unvested stock options | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| Settlement of RSUs(2) | | 500,363 | | — | | — | | — | | — | | ||||||||||||||||||||||
| Settlement of PSUs | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| Welfare benefits | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| Life insurance benefit | | 500,000 | | — | | — | | — | | — | | ||||||||||||||||||||||
| Pension | | — | | — | | — | | — | | — | | ||||||||||||||||||||||
| Restoration Plan | | — | | — | | — | | — | | — | |
| | | | Death ($) | | | Disability ($) | | | Company Termination w/o Cause ($) | | | Change of Control ($) | | | Retirement ($) | |
| Thomas Liguori | | | | | | | | | | | | | | | | |
| Severance | | | — | | | — | | | — | | | — | | | — | |
| Settlement of previously vested stock options | | | — | | | — | | | — | | | — | | | 110,554 | |
| Settlement of unvested stock(4) options | | | — | | | — | | | — | | | — | | | 1,430,607 | |
| Settlement of RSUs(4) | | | — | | | — | | | — | | | — | | | 826,219 | |
| Settlement of PSUs | | | — | | | — | | | — | | | — | | | — | |
| Welfare benefits | | | — | | | — | | | — | | | — | | | — | |
| Life insurance benefit | | | — | | | — | | | — | | | — | | | — | |
| Pension | | | 107,552 | | | 107,552 | | | 107,552 | | | 107,552 | | | 107,552 | |
| Restoration Plan | | | 273,809 | | | 273,809 | | | 273,809 | | | 273,809 | | | 273,809 | |
| CEO Pay Ratio | |
| |
| Fiscal Year | | | Summary Comp. Table Total For PEO(1) | | | CAP to PEO(1)(2) | | | Summary Comp. Table Total For Former PEO(3) | | | CAP to Former PEO(3)(4) | | | Avg. Summary Comp. Table Total For non-PEO NEOs(5) | | | Avg. CAP to non-PEO NEOs(5)(6) | | | Value of Initial Fixed $100 Investment Based on: | | | Net Income (Millions)(9) | | | Adjusted OI$ (Millions)(10) | | |||||||||||||||||||||||||||||||||
| Company TSR(7) | | | Peer Group TSR(7)(8) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | | | | $ | 9,716,827 | | | | | $ | 13,428,971 | | | | | | — | | | | | | — | | | | | $ | 1,928,181 | | | | | $ | 1,950,485 | | | | | $ | 208.95 | | | | | $ | 218.46 | | | | | $ | 770.8 | | | | | $ | 1,220.9 | | |
| 2022 | | | | $ | 8,129,900 | | | | | $ | 9,883,510 | | | | | | — | | | | | | — | | | | | $ | 2,031,221 | | | | | $ | 1,912,506 | | | | | $ | 170.48 | | | | | $ | 177.30 | | | | | $ | 692.4 | | | | | $ | 985.6 | | |
| 2021 | | | | $ | 6,151,987 | | | | | $ | 8,577,743 | | | | | $ | 2,910,076 | | | | | $ | 377,147 | | | | | $ | 1,862,076 | | | | | $ | 1,527,825 | | | | | $ | 157.58 | | | | | $ | 199.58 | | | | | $ | 193.1 | | | | | $ | 407.0 | | |
| Year | | | 2021 | | | 2022 | | | 2023 | | |||||||||
| SCT Total Compensation | | | | $ | 6,151,987 | | | | | $ | 8,129,900 | | | | | $ | 9,716,827 | | |
| Minus: Grant-date fair value of awards reported in the SCT | | | | $ | 2,858,059 | | | | | $ | 4,216,444 | | | | | $ | 6,078,268 | | |
| Plus: Vesting-date fair value of awards granted and vested in the covered year | | | | $ | 508,172 | | | | | $ | 624,058 | | | | | $ | 736,281 | | |
| Plus: Year-end fair value of awards granted but remain unvested in the covered year | | | | $ | 4,344,273 | | | | | $ | 4,349,379 | | | | | $ | 6,808,722 | | |
| Plus: Change in fair value of awards granted in prior year(s) that vested in the covered year | | | | $ | 70,402 | | | | | $ | 457,714 | | | | | $ | 164,293 | | |
| Plus: Change in fair value of awards granted in prior year(s) that remain unvested in covered year | | | | $ | 363,638 | | | | | $ | 535,110 | | | | | $ | 2,089,549 | | |
| Minus: Fair value of awards forfeited during the covered year | | | | | — | | | | | | — | | | | | | — | | |
| Minus: Aggregate change in actuarial present value of accumulated benefit under pension plans | | | | $ | 23,145 | | | | | $ | 17,711 | | | | | $ | 27,780 | | |
| Plus: Aggregate service costs and prior service costs for pension plans | | | | $ | 20,475 | | | | | $ | 21,504 | | | | | $ | 19,347 | | |
| Compensation Actually Paid (CAP) | | | | $ | 8,577,743 | | | | | $ | 9,883,510 | | | | | $ | 13,428,971 | | |
| Year | | | 2021 | | |||
| SCT Total Compensation | | | | $ | 2,910,076 | | |
| Minus: Fair value of awards forfeited during the covered year | | | | $ | 2,641,141 | | |
| Minus: Aggregate change in actuarial present value of accumulated benefit under pension plans | | | | $ | 88,339 | | |
| Plus: Aggregate service costs and prior service costs for pension plans | | | | $ | 196,551 | | |
| Compensation Actually Paid (CAP) | | | | $ | 377,147 | | |
| Year | | | 2021 | | | 2022 | | | 2023 | | |||||||||
| Average SCT Total Compensation | | | | $ | 1,862,076 | | | | | $ | 2,031,221 | | | | | $ | 1,928,181 | | |
| Minus: Average grant-date fair value of awards reported in the SCT | | | | $ | 739,776 | | | | | $ | 780,055 | | | | | $ | 890,867 | | |
| Plus: Average vesting-date fair value of awards granted and vested in the covered year | | | | $ | 136,771 | | | | | $ | 115,456 | | | | | $ | 124,990 | | |
| Plus: Average year-end fair value of awards granted but remain unvested in the covered year | | | | $ | 591,136 | | | | | $ | 402,321 | | | | | $ | 555,985 | | |
| Plus: Average change in fair value of awards granted in prior year(s) that vested in the covered year | | | | $ | 51,740 | | | | | $ | 78,917 | | | | | $ | 17,562 | | |
| Plus: Average change in fair value of awards granted in prior year(s) that remain unvested | | | | $ | 155,548 | | | | | $ | 69,871 | | | | | $ | 224,960 | | |
| Minus: Average fair value of awards forfeited during the covered year | | | | $ | 433,248 | | | | | | — | | | | | | — | | |
| Minus: Average aggregate change in actuarial present value of accumulated benefit under pension plans | | | | $ | 136,997 | | | | | $ | 43,134 | | | | | $ | 63,768 | | |
| Plus: Average aggregate service costs and prior service costs for pension plans | | | | $ | 40,575 | | | | | $ | 37,909 | | | | | $ | 53,442 | | |
| Average Compensation Actually Paid | | | | $ | 1,527,825 | | | | | $ | 1,912,506 | | | | | $ | 1,950,485 | | |
| FY23 Most Important Financial Performance Measures (Unranked) | |
| Adjusted Operating Income Dollars(1) | |
| Return on Working Capital(1) | |
| Market Share (Relative Organic Sales Growth of | |
| Relative Adjusted Earnings Per Share Growth(2) | |
| Adjusted Return on Invested Capital exceeding Weighted Average Cost of | |
| Relative Total Shareholder Return(2) | |
| PROPOSAL 3: ADVISORY VOTE ON THE FREQUENCY OF FUTURE ADVISORY VOTES ON NAMED EXECUTIVE COMPENSATION | |
| | RECOMMENDATION OF THE BOARD | | | | | | | | | |||
| | | | The Board recommends that shareholders vote to hold future advisory votes on the compensation of named executives every ONE YEAR. | | |
| Proposal 4: Ratification of Appointment of Independent Registered Public Accounting Firm | |
| | RECOMMENDATION OF THE BOARD | | | | | | | | | |||
| | | | The Board recommends that shareholders vote FOR the ratification of KPMG LLP as the Company’s independent registered public accounting firm for Fiscal | | |
| PRINCIPAL ACCOUNTING FIRM FEES | |
| | | Fiscal 2021 | | Fiscal 2022 | | | | Fiscal 2022 | | Fiscal 2023 | | ||||
| Audit Fees | | $ 5,892,000 | | $ 6,146,000 | | Audit Fees | | $ 6,146,000 | | $ 6,359,000 | | ||||
| Audit-Related Fees | | 311,000 | | 32,000 | | Audit-Related Fees | | 32,000 | | 261,000 | | ||||
| Tax Fees | | | 61,000 | | 231,000 | | Tax Fees | | | 231,000 | | 235,000 | | ||
| TOTAL | | $6,264,000 | | $6,409,000 | | TOTAL | | $6,409,000 | | $6,855,000 | |
| AUDIT COMMITTEE REPORT | |
| Shareholder Proposals and Nominations | |
| DELIVERY OF DOCUMENTS TO SHAREHOLDERS WITH SAME LAST NAME AND ADDRESS | |
| General | |
| APPENDIX A | |
| | | | Fiscal Year 2023 | | ||||||||||||
| | | | Operating Income | | | Net Income | | | Diluted Earnings Per Share | | ||||||
| | | | (thousands except per share data) | | ||||||||||||
| GAAP results | | | | $ | 1,186,800 | | | | | $ | 770,828 | | | | $8.26 | |
| Restructuring, integration and other expenses | | | | | 28,038 | | | | | | 22,031 | | | | 0.24 | |
| Amortization of intangible assets and other | | | | | 6,053 | | | | | | 4,693 | | | | 0.05 | |
| Gain on legal settlements and other | | | | | — | | | | | | (28,325) | | | | (0.31) | |
| Income tax adjustments | | | | | — | | | | | | (16,453) | | | | (0.18) | |
| Total adjustments | | | | | 34,091 | | | | | | (18,054) | | | | (0.20) | |
| Adjusted non-GAAP results | | | | $ | 1,220,891 | | | | | $ | 752,774 | | | | $8.06 | |
| | | | Fiscal Year 2022 | | ||||||||||||
| | | | Operating Income | | | Net Income | | | Diluted Earnings Per Share | | ||||||
| | | | (thousands except per share data) | | ||||||||||||
| GAAP results | | | | $ | 939,011 | | | | | $ | 692,379 | | | | $ 6.94 | |
| Restructuring, integration and other expenses | | | | | 5,272 | | | | | | 4,260 | | | | 0.04 | |
| Amortization of intangible assets and other | | | | | 15,038 | | | | | | 11,958 | | | | 0.12 | |
| Russia-Ukraine conflict related expenses | | | | | 26,261 | | | | | | 19,425 | | | | 0.19 | |
| Other special charge expenses | | | | | — | | | | | | 3,843 | | | | 0.04 | |
| Income tax adjustments | | | | | — | | | | | | (40,376) | | | | (0.40) | |
| Total adjustments | | | | | 46,571 | | | | | | (890) | | | | (0.01) | |
| Adjusted non-GAAP results | | | | $ | 985,582 | | | | | $ | 691,489 | | | | $6.93 | |
| | | | Fiscal Year 2021 | | ||||||||||||
| | | | Operating Income | | | Net Income | | | Diluted Earnings Per Share | | ||||||
| | | | (thousands except per share data) | | ||||||||||||
| GAAP results | | | | $ | 281,408 | | | | | $ | 193,114 | | | | $ 1.93 | |
| Restructuring, integration and other expenses | | | | | 84,391 | | | | | | 66,923 | | | | 0.67 | |
| Amortization of intangible assets and other | | | | | 41,245 | | | | | | 32,146 | | | | 0.32 | |
| Other expenses | | | | | — | | | | | | 20,323 | | | | 0.20 | |
| Income tax adjustments | | | | | — | | | | | | (41,275) | | | | (0.41) | |
| Total adjustments | | | | | 125,636 | | | | | | 78,117 | | | | 0.78 | |
| Adjusted non-GAAP results | | | | $ | 407,044 | | | | | $ | 271,231 | | | | $2.71 | |
| | | | Fiscal Year 2020 | | ||||||||||||
| | | | Operating Loss | | | Net Income | | | Diluted Earnings Per Share | | ||||||
| | | | (thousands except per share data) | | ||||||||||||
| GAAP results | | | | $ | (4,628) | | | | | $ | (29,533) | | | | $ (0.29) | |
| Restructuring, integration and other expenses | | | | | 81,870 | | | | | | 63,222 | | | | 0.63 | |
| Amortization of intangible assets and other | | | | | 81,555 | | | | | | 65,436 | | | | 0.65 | |
| Goodwill and intangible asset impairment expenses | | | | | 144,092 | | | | | | 137,659 | | | | 1.37 | |
| Other special charge expenses | | | | | — | | | | | | 15,344 | | | | 0.15 | |
| Income tax adjustments | | | | | — | | | | | | (47,655) | | | | (0.47) | |
| Total adjustments | | | | | 307,517 | | | | | | 234,006 | | | | 2.33 | |
| Adjusted non-GAAP results | | | | $ | 302,889 | | | | | $ | 204,473 | | | | $2.04 | |