COMPENSATION DISCUSSION AND ANALYSIS
This Compensation Discussion and Analysis describes the key elementscomponents of our executive compensation program, including an analysis of compensation awarded to, earned by or paid to our named executive officers in fiscal 2021. 2023.
Our fiscal 20212023 named executive officers includedwere Donald W. Duda, President and Chief Executive Officer; Ronald L.G. Tsoumas, Chief Financial Officer; Joseph E. Khoury, Chief Operating Officer; Andrea J. Barry, Executive Vice PresidentChief Administrative Officer and Chief Human Resources Officer; and Kevin M. Martin,Kerry A. Vyverberg, General Counsel. Ms. Vyverberg joined Methode in February 2021 as Vice President North America. Mr. Martinof Legal Affairs. She was promoted to General Counsel in June 2022 and appointed an executive officer in September 2020 and Ms. Barry2022. Mr. Khoury was promoted to Executive Vice President in June 2021.placed on leave from his position as Chief Operating Officer the Company as of July 10, 2023.
Executive Summary
Our Business. We are a leading global developersupplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East, and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, LED lighting system, power distribution and sensor applications.
Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment, consumer appliance, and medical devices. Our business is managed on a segment basis, with those segments being Automotive, Industrial, Interface and Medical.
We strive to create a company with a diverse customer base, high and consistent cash flow, and a strong balance sheet. We are committed to world class manufacturing quality, and our global footprint puts us in close proximity to key markets and customers.
In fiscal 2021,2023, we continued to capitalize on key market trends, such as new business focused on electric and hybrid vehicles (EVs) and LED lighting solutions. In the EV market, our combination of user interface, LED lighting and power distribution solutions positions us well for continued growth. Sales inIn fiscal 2021 from2023, EV product applications represented over 12%comprised approximately 21% of our totalnet sales.
We employ a balanced and growth-focused capital allocation strategy. We maintain a strong balance sheet and pay down indebtedness when appropriate to reduce leverage. We return capital to our stockholders through dividends and our stock buyback programs, such asprogram. As of April 29, 2023, we had executed over $119 million of our recently announced $100$200 million stock buyback program.authorization. We invest in organic growth through R&D and capital expenditures.
We actively seek accretive acquisitions to enhance and grow our businesses. In February 2023, we announced an offer to the shareholders of Nordic Lights Group Corporation to acquire all outstanding shares of the company. Nordic Lights aligns well with Methode’s inorganic growth framework given its focus on engineered solutions for OEMs, its industrial and non-auto transportation market exposure, and its customer and geographic diversity. We have acquired approximately 99% of the Nordic Lights share capital and intend to acquire all of the remaining outstanding shares by way of compulsory redemption proceedings under Finnish law as soon as practicable.
Our strong commitment to financial management focuses on, among other things, margin expansion through improved product mixes and operational efficiencies, leverage of SG&A on sales volume growth, and reduction of working capital percentage of sales through lean manufacturing.
Impact of the COVID-19 Pandemic on Performance. Beginning in the fourth quarter of our fiscal 2020, and continuing in fiscal 2021, the global COVID-19 pandemic has negatively affected the global economy, disrupted supply chains and substantially impacted our business. We first experienced the impacts of the pandemic in the fourth quarter of fiscal 2020 at our China manufacturing facilities, which were initially closed after the Chinese New Year. Our facilities in China resumed operations later in the fourth quarter of fiscal 2020, but at lower capacity utilization. More significantly, in mid-March 2020, and continuing into the start of our fiscal 2021, many of our North American and European customers suspended their manufacturing operations due to government directives. Our operations in North America and Europe gradually resumed during the first quarter, with significantly reduced production levels. Our global production levels returned to pre-COVID levels by the end of our second quarter as a result of increased demand from customers, which continued for the remainder of the year. Starting in our third quarter, our global team had to address additional challenges related to the global semiconductor supply shortage and other supply chain disruptions, as well as international transportation capacity restraints.
Response to the COVID-19 Pandemic. In fiscal 2021, our executive officers continued to effectively manage the unprecedented challenges and uncertainties of the pandemic on a global basis. In reviewing what was required to keep our facilities operating, management prioritized the health and safety of our employees and their families. We adopted numerous safety procedures at our 40 global facilities, including hygiene and disinfection protocols, testing and contact tracing, social distancing and wearing personal protective equipment (PPE)Fiscal 2023 Financial Highlights. We implemented the sharing of best practices throughout the Company’s global facilities, resulting in effective and standardized safety guidelines and procedures, updated on a regular basis, promoting the health and safety of our employees.