UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Securities Exchange Act of 1934
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Invesco Ltd.
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Proxy Statement Notice of 2022 Annual General Meeting of Shareholders |
Please vote by using the Internet, the telephone or by signing, dating and returning a proxy card |
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Invesco
A leading independent global investment management firm
Founded in | Proudly manages | Over | Serving clients in | On the ground in | ||||||||||||
1935 | $1.6T | 8,500 | 110+ | 20+ | ||||||||||||
and headquartered | in assets for retail | employees to better | countries | countries to leverage | ||||||||||||
in Atlanta, Georgia | and institutional | serve all clients | local presence | |||||||||||||
investors1 |
Our single focus is to help clients achieve their investment objectives
We direct all of our intellectual capital, global strength and operational stability toward helping our clients
We have a broad and deep presence in key markets across the globe
We have a strong track record of financial stability and possess the resources to continue our long-term investment in the business
Our purpose
Delivering an investment experience that helps people get more out of life
Our multi-year strategic objectives | ||
• Achieve strong investment performance | ||
• Be instrumental to our clients’ success | ||
• Harness the power of our global platform | ||
• Perpetuate a high-performance organization | ||
Our beliefs put clients at the center of everything we do | ||
• Pure focus on investing | ||
• Passion to exceed | ||
• Diversity of thought and a collaborative culture | ||
• A comprehensive range of capabilities enables us to meet the unique needs of clients | ||
• A high-conviction approach is more impactful | ||
• Patience leads to better results over time | ||
Our beliefs enable us to | ||
• Inspire the consistent behaviors and discipline that help generate strong, long-term investment performance for our clients | ||
• Maintain an engaging work environment that helps us attract, develop, motivate and retain the best talent in the industry | ||
1. December 31, 2021.
G. Richard Wagoner, Jr.
has served as Chair of our Board since 2019 and as a non-executive director of our company since 2013
A Letterletter to our shareholders from the Chairperson of Our Shareholders from Our Chair of the Board and Chief Executive Officer
Dear Fellow Shareholder,
Let us start by expressing our sincere appreciation for your continued support as anThe Invesco shareholder. OurLtd. Board of Directors leadership and employees worldwide are committedcontinues to further strengthening our business and providing a good return onappreciate the trust that you place in us as stewards of your investment in Invesco.the company and takes our responsibilities in that regard very seriously.
A look back at 2019
The past year was another challenging one forLet me start by saying that the Board worked closely with management as CEO Marty Flanagan and his team continued to implement their long-term strategy to compete and win in the rapidly evolving asset management industry, with increasing competition, continued pricingindustry. We were pleased to see that strategy help the company deliver record operating results in 2021 across a broad range of operating and cost pressures, further concentration of relationships among clientsfinancial metrics, and a volatile geopolitical environment. But, at the same time, opportunities within the industry continued to expand, including China’s moves to further open its market to foreign asset managers, greater demand for customized solutions and value-added services, and the growing use of technology. Combined, the challenges and opportunities in our industry continue to widen the gap between global, increasingly scaled firms such as Invesco and those that are not as well positioned to address these trends.
We mademake significant progress in strengthening our balance sheet, cash position and financial flexibility, as well as improved stock price performance.
In addition to reporting record net long-term inflows, the company also generated record gross inflows of $427 billion, a number37% increase over the prior year.1 Net long-term inflows of key areasmore than $81.4 billion represented a 7% organic growth rate for the year, one of the highest growth rates in 2019 (discussed below), but also experiencedthe industry. Additionally, strong cash flows in our business improved the firm’s cash position to a level where we are resuming share repurchases, reflecting our continued confidence in the long-term prospects of the business.
We were equally pleased with how the firm continued to handle the challenges that contributed topresented by COVID-19 and its variants, with a dedicated focus on ensuring the underperformancehealth and safety of our stock price relativeemployees, while continuing to peers, including the following:
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Buildinginnovate in engaging with our business for long-term success
The most significant undertaking forclients. We are especially appreciative of all Invesco in 2019 was the completion of our acquisition of OppenheimerFunds, and the integration of our two firms. We view the combination as a multi-year growth story that deepened our relationships with clients in the US, expanded the capabilities we can offer globally and further scaled our business for the benefit of clients and shareholders. We remain intently focused on delivering the additional capabilities achieved through the acquisition to US Wealth Management Intermediaries, and institutional andex-US markets, while delivering the benefits of our greater scaleemployees’ continuing commitment to our clients and shareholders.overall business throughout the prolonged pandemic.
We also were pleased to see the firm’s progress in achieving its ambitious goals in the important areas of diversity, equity and inclusion. For example, the progress made in increasing the gender diversity of our senior managers – up from 27% in 2018 to 35% currently – reflects the organization’s strong commitment, thoughtful planning and significant effort. Of course, there’s much more to be done in this important area, and the Board will continue to work with management to build on this progress.
The combination enhanced our business in ways that will contributeBoard has also strongly supported Invesco’s commitment to our success over the long term. Even though we only combined the two firms in midyear, we are seeing early signs that illustrate the strengthESG and was pleased to see further progress last year. Currently, approximately 75% of the combination. For example,AUM managed by Invesco’s investment teams have attained the ESG integration level as minimal but systematic integration, placing the firm well down the path of achieving its goal of ensuring all of Invesco’s teams have fully embedded ESG considerations into their investment processes by the end of 2023. The firm launched dozens of new ESG products in 2021 across North America and Europe, contributing to a growing range of investment products that enable clients to express their values while saving for 2019,the future. The Board is pleased with this progress, but of course much remains to be done to achieve our ESG aspirations.
In 2021 we had several important changes in Board composition. We continue to focus on recommending to shareholders a slate of directors that can support management in all key areas and functions, and represents a good balance of expertise, experience, diversity and continuity, while adding fresh perspectives as appropriate.
We welcomed Paula Tolliver to the Board following her election at the May 2021 Annual General Meeting. As a former Chief Information Officer and Chief Digital Officer for Intel Corporation, Paula has a depth of experience in global business and technology – two especially important areas for Invesco. We will leverage Paula’s extensive expertise as we work to further expand the digital possibilities for client engagement and more effectively use data to improve every aspect of our business. In the fall, we were pleased to add Chris Womack, Chair, President and CEO of Georgia Power Company, to the Board. Chris brings a wealth of experience in public policy, leadership and innovation to Invesco, delivered powerful results1:all of which will prove invaluable to the firm.
2022 Proxy Statement ii |
Earlier this year, we announced that Nelson Peltz and Ed Garden of Trian were stepping down from the Invesco Ltd. Board in light of their appointment to the Board of Janus Henderson Group. While Nelson’s and Ed’s tenure on our Board was fairly brief, they each made significant contributions to the company and Board and were sincerely appreciated as Board colleagues. We are pleased that Trian remains a significant shareholder in Invesco, and wish Nelson and Ed the best.
Annual General Meeting. You are cordially invited to attend the Your vote is important, and we encourage you to vote promptly. Regardless of whether you can attend the |
In closing, your Board will continue to closely engage with Invesco’s management team. We have a very constructive view on the outlook for Invesco to succeed in the global asset management industry, and a high degree of confidence in the firm’s leadership team. On behalf of the Invesco Board of Directors, I thank you for your continued support.
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G. Richard Wagoner, Jr. |
Chairperson |
1. All data Invesco data as of December 31, 2021.
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Martin Flanagan
has been President and Chief Executive Officer of our company and a director since 2005
Taken together,A letter to our shareholders from our President and CEO
Dear Fellow Shareholder,
2021 was an extraordinary year on several levels. None of us predicted that we would endure another full year of the acquisitionglobal pandemic. We also saw supply disruptions globally, continued social unrest and increased intensity in climate-related disasters. Within the asset management industry, investors experienced volatility related to a recovery from the challenging markets of 2020, the further rise of blockchain-related technologies and a continued trend toward passive, alternative and ESG-related products.
In challenging times, I’ve always found that the best course is to focus on what you can control. At Invesco, we placed a priority on taking care of the health and well-being of our continuingemployees. This enabled us to stay sharply focused on meeting the needs of our clients across the globe, seeking new ways to engage with them and helping them achieve their investment objectives. Building on more than a decade of efforts to shape our firm ahead of key client demand trends, Invesco was very well positioned to deliver robust investment performance and a high level of value to clients.
As a result of these efforts, I’m pleased to report that Invesco achieved record operating results in 2021. Growth throughout the year was driven by continued demand for our key capability areas, including ETFs, active fixed income, China, solutions, private markets and active global equities. Net long-term inflows of $81.4 billion represented a 7% organic growth rate for the year – our strongest organic growth in decades and one of the highest growth rates in our industry.
Investment performance strengthened as well, which helped Invesco end 2021 with $1.6 trillion in assets under management, up 19.3% for the year. Additionally, net revenues, adjusted operating income and adjusted operating margin all improved meaningfully year over year.1 Invesco has now achieved six consecutive quarters of strong growth – a direct outcome of the investments we’ve made over time to enhance and evolve our business to better meet the needs of clients.
We also continued to enhance our balance sheet while maintaining a disciplined approach to our business. The growth in our business drove positive operating leverage, leading to a 450 basis point increase in 2019 further expandedour adjusted operating margin1 to 41.5%. We also exceeded our target of achieving $150 million in annualized net savings after investments by the broad rangeend of capabilities Invesco uses
2022 Proxy Statement iv |
2021 and are well on track to create solutions that delivermeet our goal of $200 million in annualized net savings after investments by the outcomes clients are seeking. Our work over the past year alsoend of 2022. Combined, these factors drove a 60% increase in our full-year adjusted diluted earnings per share1 to $3.09.
The momentum in our business generated strong cash flows and further strengthened our cash position, which enhances our financial flexibility for the firm’s effectivenessfuture. As a result, we resumed share repurchases early in 2022, reflecting confidence in our business and efficiency, providing greater economiesour view that Invesco stock represents an excellent investment opportunity.
Although 2021 was a record year for Invesco in a number of scaleareas, we recognize that there is still much work ahead of us. The strong results over last year will enable us to providecontinue investing in our people, our capabilities and our technology, which are essential to meeting client needs and further differentiating our firm in a higherhighly dynamic and competitive industry.
The industry and the needs of investors are evolving – rapidly
The ongoing pandemic continues to accelerate many of the trends impacting our industry. These trends favor larger, better scaled firms like Invesco, which has the resources to continuously invest in the business for the benefit of clients while advancing our competitive position. Specifically, we believe:
Clients value deeper relationships with fewer trusted managers, seeking a comprehensive range of capabilities to meet the totality of their desired investment outcomes
Clients are increasingly “barbelling” their portfolios, with larger allocations to passive assets on one end and alternative assets on the other
China and emerging markets will drive the growth of global wealth and untapped investment opportunities
ETFs and indexing will remain core to portfolios and continue to drive flows, while assets with durable alpha propositions will drive revenue opportunities
“Digital everything” will continue to expand the possibilities for new client engagement approaches while changing the relationship between investment managers, intermediaries and end-clients
Interest in ESG (environment, social, governance) capabilities will continue to grow and evolve
Increased regulatory activity and oversight will continue to influence competitive dynamics
We’ll continue to see the democratization of investment opportunities for individual investors into private markets and the advancement of tokenization and digital assets.
Shaping our business for clients and for the future
Invesco has a long history of shaping our business ahead of client demand and industry trends, with pioneering investments in China, ETFs and solutions. We operate in a $100 trillion industry that we fully expect will continue to grow – by some estimates expanding to $145 trillion over the next three years.2 We have a clear understanding of how client demand is evolving and where it’s headed. Over the past decade, we’ve been highly focused on investing ahead of shifts in client demand, which helped us achieve strong operating results in 2021 and positions us very well for the future.
Our purpose is to deliver an investment experience that helps people get more out of life. In a highly dynamic operating environment and a world of sometimes competing priorities, we are guided by this purpose, which enables us to deliver a high level of value to clients, invest in our people and build our business while providing long-term returns for shareholders. We’re proud that the outcomes we deliver help individuals and institutions across the globe invest in their futures, which inspires our 8,500 employees in the work they do every day.
Over the past decade, we’ve invested meaningfully in our people, our business and the capabilities that align with client demand. This strong foundation gives us confidence that we can continue to help people get more out of life as they save for retirement, their children’s education and more. To help you better understand the drivers of our success for 2021 and the years ahead, I want to highlight a few key aspects of our business that position Invesco well ahead of key trends in our industry.
Fostering a culture where diverse people and perspectives thrive
Helping to ensure health and well-being of our employees and providing a flexible work model through the pandemic are key priorities for Invesco. In fact, 91% of our employee felt that senior leadership prioritized their health and safety through the pandemic, according to our employee opinion survey. Our commitment to their well-being helps employees stay focused on the needs of our clients and our business, and it is a primary reason why Invesco is able to retain, engage, motivate and attract some of the best and brightest in the industry.
We work hard every day to create a diverse, equitable and inclusive (“DEI”) workplace for all our employees. Our commitment to DEI spans every level of our organization, and Invesco leaders have annual performance goals that drive DEI priorities within their business units and across the firm. Notable accomplishments in 2021 include achieving 35% female representation at the senior manager level (up from 27% in 2018), increasing the diversity of the Invesco Ltd. Board to 36% and requiring unconscious bias training for all employees across the globe.
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Additionally, we further improveexpanded our competitive position.business resource groups “BRGs” across the globe. These employee-led BRGs comprise an internal support network of individuals representing the expanding diversity of our firm, enabling us to promote understanding, support the needs of our diverse communities and connect our employees. We now have 11 BRGs, including representation for women, Hispanics, veterans, neurodiversity, LGBTQ+ and others. Combined, these groups hosted more than 70 events over the past year.
Although we’re pleased with our progress in these areas, we recognize there is more to do, and we are committed to further expanding our DEI efforts in 2022 and beyond.
Innovating our way to success in ETFs and Indexed Strategies
In line with our strong track record of investing in key capabilities ahead of client demand, we began building our ETF and Indexed Strategies business with approximately $3.5 billion in assets in 2006. Over the past 15 years, we’ve pioneered new possibilities and launched a number of innovative products to help clients across the globe meet their desired investment objectives. Through Invesco’s product offerings, clients continue to obtain access to new investments and asset classes and participate in the growth of financial markets. Invesco’s innovative products encompass smart beta ETFs, crypto ETFs, blockchain technologies ETFs, commodities, factor-based equity ETFs and smart beta fixed income ETFs. Most of these strategies are being launched in the market as “first of their kind.”
More recently, we expanded our broad suite of ETF capabilities with new offerings aligned one of our most popular ETFs that is aligned to the Nasdaq-100 Index. We also launched a number of ETFs that provide direct or indirect exposure to digital assets. Lastly, we increased our presence in the institutional space by offering indexed institutional mandates, which further solidifies Invesco’s reputation as a leading provider of passive solutions.
Our long-standing focus on innovation has helped Invesco become the fourth-largest provider of ETFs globally.3 In the past three years, Invesco ETFs and Indexed Strategies has more than doubled in size, reaching $558 billion4 in AUM by launching new ETFs and elevating existing products to help clients across the globe solve their specific needs.
In 2021, we achieved record growth in our global ETF and Indexed Strategies business, with $85 billion in net inflows through year-end and a meaningful improvement in global ETF market share.5
Building on our strong alternatives foundation
Alternatives are investments that provide strong benefits to clients by seeking to exploit market inefficiencies through focusing on non-traditional assets and private market investment strategies. Alternatives represented roughly 15% or $15.4 trillion of the $103 trillion global market in 2020 and the asset category is expected to grow more than 10% over the next three years.6 The phenomenal growth and increasing client demand for alternatives represent a tremendous opportunity for differentiated, high-quality investment managers like Invesco.
We are well-positioned to capitalize on the barbelling of portfolios as clients increasingly seek alternatives on one end of the spectrum and passive strategies on the other. With $197 billion in alternatives AUM, Invesco is the 8th largest alternatives provider globally.7 Our alternatives business is anchored by our $71 billion real estate platform and our $41 billion private credit business (AUM as of December 31, 2021). Each of these businesses competes in all channels and regions of the world, and both platforms have established client bases and longstanding track records that distinguish them in the marketplace.
The combination of these two important businesses strengthens Invesco’s profile in the global marketplace and enables us to meet the expanding client demand for alternatives capabilities while helping us grow our global business. For 2022, we are focused on further building our alternatives business by enhancing the capabilities we deliver to clients and expanding the scale, capabilities and reach of our real estate and private credit platforms.
Our China advantage
In 2003, Invesco undertook the first China-US joint venture, Invesco Great Wall. Our presence in China builds on our 50-year legacy of success in the Asia Pacific region. Over the past 20 years, the Chinese mutual fund management industry has grown from zero to more than $4 trillion8, and it’s expected to become the second-largest fund management market in the world by 2025, with more than $6 trillion in assets.9 Through 2024, China is expected to account for more than 40% of global net flows.10 As an early entrant in China, we’ve worked steadily to develop a strong and comprehensive platform covering a broad range of business activities, including robust domestic investment capabilities with strong performance.11
Our China business is multidimensional and includes retail, on-shore, off-shore and institutional, and we have very strong relationships with banks and insurance companies. In addition, we have a meaningful presence on China’s digital platforms, which are highly attractive in the market and meaningfully impactful to our business. Our long history in China, our joint venture management being led by Invesco since its inception and our strong platform in the region
2022 Proxy Statement vi |
give us a significant advantage over other global firms. Invesco is ranked #1 for its China onshore business12 and the #3 foreign asset management firm overall.13 With our strong active investment performance, our China business has grown at a 43% CAGR since 2018, and we now have more than $112 billion of assets sourced from onshore Chinese clients as of the end of the year.14
Although there is uncertainty with the current state of relations between China and the US, everything we’ve seen indicates that China remains committed to opening its markets further. We believe China will continue to provide tremendous opportunities for investment and a more level playing field to global fund managers, which is good news for investors everywhere.
The trend toward ESG investing
Growing concerns about climate change and social issues are driving an increased client interest in ESG investing. According to Morningstar, 72% of US investors have expressed interest in sustainable investing15, and we’re seeing increased interest in ESG capabilities across the globe.
As noted above, Invesco’s purpose is to deliver an investment experience that helps people get more out of life. Sustainable value creation and effective risk mitigation are fundamental to achieving our purpose. As a result, our focus is on integrating ESG into the heart of our investment process, with our investment teams taking decisions every day on how to manage this integration and how to use our leverage in important areas such as client engagement and proxy voting. Approximately 75% of the AUM managed by Invesco’s investment teams have attained the ESG integration level as minimal but systematic integration, and our goal is for all teams to have fully embedded ESG considerations by the end of 2023.
We also focus our efforts on specific client needs, using skills such as our self-indexing capabilities to provide helpful ESG solutions. Invesco offers a growing range of investment capabilities that enable our clients to express their values in ways that can drive portfolio alpha. With Invesco’s comprehensive range of capabilities, clients can incorporate ESG-aligned ETFs, mutual funds, separately managed accounts and custom indexes into their portfolios.
More specifically, to reinforce our commitment to ESG in 2021, Invesco:
Increased its ESG AUM (i.e., assets under management in dedicated sustainable investing strategies) to $96 billion as of December 31, 2021.
Signed the Net Zero Asset Managers initiative, joining other asset managers to support the global goal of reaching net-zero greenhouse gas emissions by 2050 or sooner.
Launched 22 ESG ETFs across North American and Europe, including both thematic (solar, clean energy, green building) and comprehensive (Nasdaq ESG, S&P 500 equal weight ESG) capabilities. Several new products were pioneers in their space, such as the first green building ETF in the US and the first Nasdaq 100 ESG ETF in the US, Canada and Europe.
At Invesco, ESG is investment led, supported by our dedicated global ESG team. We are making good progress in integrating ESG into our business but remain focused on further deepening of client relationships, expanded capabilities and additional scale achieved in 2019 meaningfully enhanceexpanding our ability to growmeet the growing ESG needs of our clients.
Building resilient portfolios with Invesco Solutions
Institutional investors are often tasked with constructing sophisticated multi-asset portfolios designed to deliver predictable outcomes while navigating market volatility for their clients. As markets evolve, many investors face challenges meeting their objectives in a lower-return, lower-yield environment.
Invesco Solutions comprises 80 investment professionals combining an outcome-based approach with deep expertise in asset allocation, portfolio construction and risk management. The team delivers Invesco’s capabilities in a manner that is agnostic to asset-class, style, strategy or vehicle type. By listening to our clients and drawing on the diversity of the firm’s extensive investment platform, Invesco Solutions provides multi-asset expertise and proprietary analytics to help clients create durable portfolios based on specific goals and constraints.
As a result of our focus on meeting client needs and the expertise we’ve put in place to meet those needs, our Solutions business grew meaningfully in 2021. It has been a key part of our client engagement efforts and now accounts for approximately 35% of our institutional pipeline as of December 31, 2021.
Well-positioned for 2022 and beyond
Our success in 2021 didn’t happen overnight. It’s the result of a relentless focus over the past decade to better understand our clients’ needs and shape our firm ahead of their evolving expectations.
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We continue to believe that the $103 trillion asset management industry offers tremendous opportunities for growth. At the same time, the industry is highly dynamic and undergoing fundamental changes that require us to be very strategic about where we invest for the future. As always, the work we’re doing to better understand the needs of our clients and where the industry is headed serve as the foundation for further investment in our business.
Over the past decade, we’ve worked hard to shape Invesco and align the firm with the needs of our clients and ahead of key industry trends. That gives us a tremendous foundation from which we can better anticipate and meet evolving client needs, further strengthen our business and compete and win in a dynamic market environment.
We look with confidence to the future
Looking ahead,deliver strong outcomes for all our industrystakeholders. We will continue to undergo dramatic change, driveninvest in key growth areas of our business – e.g., ETFs, China, Solutions, ESG and others – areas where we see strong momentum and where we are well positioned to win. More importantly, our world-class talent across the globe remains a competitive differentiator that will help us execute our long-term strategy and further separate us from others as a winner in the industry.
Let me close by expressing our deep appreciation to you, as shareholders, for your continued support. We are also grateful to our clients and our employees for their continued support in these extraordinary times. Although 2021 was a record year for Invesco in a number of potentially disruptive trends, including:
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We’ve taken a number of steps over the past several years to position Invesco ahead of these macrotrends, and we’re confident that the investments made in 2019 will drive greater shareholder value over the long term.
We are keenlyareas, we remain focused on improving our net investment flow performance, and believe we are well-positioned to do so, based on a number of factors:
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As we progress through 2020, the outbreak of the coronavirus represents a significant challenge for the industry and for businesses across the globe. We are of course closely monitoring developments related toCOVID-19 and its impact on the financial markets and global economy. The primary focus of our efforts is to ensure the health and safety of our employees, preservefurther strengthening our ability to meet client needs, making continuous improvements across our global firm and runrunning a disciplined business. The strength of our results over the past year and the work we’re doing to further align Invesco with the needs of our clients give us confidence in our long-term strategy and enable us to further invest in our business for the benefit of our clients, employees, shareholders and others.
Sincerely, |
Marty Flanagan |
President and CEO |
1. All non-GAAP operating results for the firm mentioned in the 2021 CEO shareholder letter are Invesco data as of December 31, 2021. Adjusted financial measures are all non-GAAP financial measures. See the information in Appendix A regarding non-GAAP financial measures. 2. Asset & Wealth Management Revolution: Embracing Exponential Change, copyright PwC, December 2021. 3. Invesco ETFs and Indexed Strategies data as of December. 31, 2021. 4. Invesco ETFs and Indexed Strategies data as of December 31, 2021. 5. Invesco ETFs and Indexed Strategies data as of December 31, 2021. 6. Source: Invesco data and data from the CAIA Association, “The Next Decade of Alternative Investments,” 2020. 7. Invesco data as of December 31, 2021, including private and public alternatives AUM. 8. Asset Management Association of China, as of December 31, 2021. 9. KPMG. |
10. McKinsey.
11. Invesco data. 75% and 88% of our China joint venture AUM was above peers on a 3- and 5-year basis as at December 31, 2021.
12. Z-Ben Advisors, 2021 China Rankings – The Top Foreign Firms in China, April 2021.
13. Z-Ben Advisors, 2021 China Rankings – The Top Foreign Firms in China, April 2021
14. Invesco data as of December 31, 2021.
15. Morningstar. Are Your Clients ESG Investors? April 22, 2019. Based on a highly dynamic market environment.nationally representative sample of 948 respondents.
Your Board remains highly confident in the leadership, strategy and direction
2022 Proxy Statement viii |
Notice of the firm. We believe the work the company has done over the past few years places Invesco in a strong position to meet client needs, compete in a dynamic operating environment and provide compelling returns for shareholders.2022 Annual Meeting of Shareholders
Date and time | ||||
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Thursday, May 12, 2022, at 1:00 p.m., Eastern Time | |||
Place | ||||
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Atlanta, Georgia 30309 | |||
Voting methods | ||||
Internet Visit the web site listed on your Notice | ||||
Telephone Call the telephone number listed on your Notice | ||||
Sign, date and | ||||
In person | ||||
Attend the Annual | ||||
General Meeting |
Board voting | ||||||
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| 1 | To elect | FOR
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2 | To hold an advisory vote to approve the company’s executive compensation | FOR
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3 | To amend and restate the Invesco Ltd. 2012 Employee Stock Purchase Plan to replenish share reserves | FOR | ||||||
4 | To appoint PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for the | FOR
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5 | To consider and act upon such other business as may properly come before the meeting or any adjournment thereof |
Who can vote
Only holders of record of Invesco Ltd. common shares on March 14, 2022 are entitled to notice of, to attend and vote at the Annual General Meeting and any adjournment or postponement thereof. Beginning on March 25, 2022, we mailed a Notice of Internet Availability of Proxy Materials (“Notice”) containing instructions on how to access this Proxy Statement and our Annual Report via the Internet to eligible shareholders.
During the Annual General Meeting, the audited consolidated financial statements for the year ended December 31, 2021 of the company will be presented.
By order of the Board of Directors,
Kevin M. Carome
Company Secretary
March 25, 2022
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Proxy statement
This Proxy Statement is furnished in connection with the solicitation of proxies by the Board of Directors of Invesco Ltd. (“Board” or “Board of Directors”) for the Annual General Meeting to be held on Thursday, May 12, 2022, at 1:00 p.m. Eastern Time. Please review the entire Proxy Statement and the company’s 2021 Annual Report on Form 10-K before voting. In this Proxy Statement, we may refer to Invesco Ltd. as the “company,” “Invesco,” “we,” “us” or “our.”
Voting roadmap
Proposal Election of directors
1 | Diversity and tenure of our directors: | • 10 of our 11 directors are independent • We have an independent chair of the Board • Our independent directors meet regularly without management present • All of our Board committees are composed exclusively of independent directors • Directors are elected for a 1-year term |
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Qualifications, skills and experience of our directors: | ||||||||||||
4 Public company CEO | 10 Executive strategy and execution | 9 International experience | ||||||||||
6 Industry Experience | 3 Accounting and financial reporting | 4 Technical - government, legal, regulatory, and technology |
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| FOR | Recommendation of The Board of Directors unanimously recommends a vote “FOR” the election to | ||||||
2022 Proxy Statement x |
Proposal 2 | Advisory vote on the compensation paid to our named executive officers | |||
Invesco’s executive compensation program is designed to align executive compensation with the long-term interests of our shareholders. Our compensation program uses a company scorecard to measure our financial performance and our organizational strength. Our compensation committee assesses the company’s quantitative performance through the company scorecard and qualitative individual achievements to determine each executive’s incentive compensation. The pay determination process reinforces our shareholder value framework. Pay for 2021 is aligned with performance. | ||||
2021 Financial performance1 |
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7% organic growth rate | Net revenue2 $5,261M +17% | Adjusted operating income2 $2,183M +31% | Adjusted operating margin2 41.5% +450 basis points | Adjusted diluted EPS2 $3.09 +60% | ||||||||||||||
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Martin L. Flanagan | ||||
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Total CEO incentive pay is | 95% | 60% | ||||||||
118% of target | of CEO’s 2021 pay is variable | of CEO’s 2021 equity is performance-based | ||||||||
Further information regarding executive compensation begins on page 39 of this Proxy Statement. |
2019 Financial performance (year-over-year change)
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Annual adjusted operating incomea |
Annual adjusted operating margina |
Annual adjusted diluted EPSa |
Annual AUM growth | |||
$1.7 billion |
37.5% |
$2.55 |
+38% | |||
(+19%)
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a The adjusted financial measures are allnon-GAAP financial measures. See the information in Appendix A of this Proxy Statement regardingNon-GAAP financial measures. |
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FOR | Recommendation of the Board of Directors The Board of Directors unanimously recommends a vote “FOR” the approval of the compensation of our named executive officers. | |||||||
2. Adjusted financial measures are all non-GAAP financial measures. See the |
xi Invesco Ltd. |
Proposal 3 | Approval of the
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The amended and restated Invesco Ltd. 2012 Employee Stock Purchase Plan will replenish the
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Why we support the proposal | ||||||||||||
The Employee Stock Purchase Plan, as amended and restated: | ||||||||||||
• Enables us to further align the long-term interests of our employees with those of our shareholders | ||||||||||||
• Encourages employee retention | ||||||||||||
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FOR | Recommendation of the Board | |||||||||||
The Board of Directors unanimously recommends a vote “FOR” the approval of the amended and restated Invesco Ltd. Employee Stock Purchase Plan. | ||||||||||||
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Proposal 4 | Ratification of the appointment of PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for 2022 | |||||||||||
The audit committee and the Board believe that the continued retention of PwC as our independent registered public accounting firm is in the best interest of the company and our shareholders. | ||||||||||||
Recommendation of the Board | ||||||||||||
FOR | The Board of Directors unanimously recommends a vote “FOR” the appointment of PwC as the company’s independent registered public accounting firm for the year ending December 31, 2022. | |||||||||||
2022 Proxy Statement xii |
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In 2021, the company experienced some of its strongest financial performance in its history as we focused on our clients and employees in a continuing COVID operating environment. We embedded new ways of working together to deliver outcomes for our clients. Our growth in 2021 was driven by continued strength in our key capability areas as we continued our strategic investments in areas where we see client demand and have competitive strength.
2021 Financial performance1
Long-term |
Adjusted | Adjusted | Adjusted | |||||||||||||
net flows | Net revenue2 | operating income2 | operating margin2 | diluted EPS2 | ||||||||||||
$81.4B | $5,261M | $2,183M | 41.5% | $3.09 | ||||||||||||
7% organic | +17% | +31% | +450 basis points | +60% | ||||||||||||
growth rate
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2021 Firm highlights2 | ||||||
We maintained focus on our key capability areas in 2021, which helped us generate strong financial results. Invesco achieved a 7% organic growth rate for 2021 – the strongest organic growth in our history and one of the best growth rates in the industry for 2021. | ||||||
We generated over $81 billion of net long-term inflows, resulting in over $1.6 trillion in assets under management at the end of 2021. | ||||||
Net revenues grew 17% in 2021, helping us achieve adjusted operating income of nearly $2.2 billion, 31% higher than the previous year. Revenue growth, coupled with strong expense discipline, led to a 450 basis point increase in our adjusted operating margin to 41.5%. These factors contributed to a 60% increase in our full-year adjusted diluted EPS to $3.09. | ||||||
The strength in our business has generated strong cash flows, improving the company’s cash position. We remained focused on continuing to build a stronger balance sheet and improving financial flexibility for the future. | ||||||
The company’s global ETF platform generated a record $62 billion in net inflows, and we increased market share in both ETF assets under management and revenues. Invesco’s QQQ ETF ended 2021 with over $21 billion in net inflows, growing to $215 billion at year-end. Invesco QQQ has become the 5th largest ETF globally. |
1. | Comparisons are year-over-year. |
2. | Adjusted financial measures are all non-GAAP financial measures. See the information in Appendix A regarding non-GAAP financial measures. |
2022 Proxy Statement 1 |
| Increasing diverse talent has been a focus since we formally launched our diversity, equity and inclusion initiatives. We set a target of 35% of female representation of senior managers, which we have achieved as of December 31, 2021. | |||||||||
We have an 86%1 completion rate of unconscious bias training for all our employees. | ||||||||||
Business Resource Groups (“BRGs”) foster cultural awareness and inclusivity. Our employees hosted over 70 events globally across our 11 BRGs in 2021. | ||||||||||
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Director qualifications | ||||||||||||||||||||||||||||||||||
Director | Other public |
Committee memberships | ||||||||||||||||||||||||||||||||
Name | Age | since | boards | A | C | NCG | ||||||||||||||||||||||||||||
Sarah E. Beshar | 61 | 2017 | – | M | M | M | ∎ | ∎ | ||||||||||||||||||||||||||
Former Partner, Davis Polk
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Martin L. Flanagan | 59 | 2005 | – | – | – | – | ∎ | ∎ | ∎ | ∎ | ∎ | |||||||||||||||||||||||
President and CEO, Invesco Ltd.
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William F. Glavin, Jr. | 61 | 2019 | 1 | M | M | M | ∎ | ∎ | ∎ | |||||||||||||||||||||||||
Former Vice Chair of MassMutual Asset Management Holding Co.
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C. Robert Henrikson | 72 | 2012 | – | M | Ch | M | ∎ | ∎ | ∎ | ∎ | ∎ | |||||||||||||||||||||||
Former President and CEO, MetLife, Inc. and Metropolitan Life Insurance Company
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Denis Kessler | 68 | 2002 | 2 | – | M | M | ∎ | ∎ | ∎ | ∎ | ∎ | |||||||||||||||||||||||
Chairman and CEO, SCOR SE
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Sir Nigel Sheinwald | 66 | 2015 | 1 | M | M | M | ∎ | ∎ | ∎ | |||||||||||||||||||||||||
Former United Kingdom Senior Diplomat
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G. Richard Wagoner, Jr. | 67 | 2013 | 1 | M | M | M | ∎ | ∎ | ∎ | ∎ | ∎ | |||||||||||||||||||||||
Former Chairman and CEO, | ||||||||||||||||||||||||||||||||||
General Motors Corporation
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Phoebe A. Wood | 66 | 2010 | 3 | Ch | M | M | ∎ | ∎ | ∎ | ∎ | ||||||||||||||||||||||||
Former Vice Chairman and CFO, | ||||||||||||||||||||||||||||||||||
Brown-Forman Corporation
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Joseph R. Canion1 | ||||||||||||||||||||||||||||||||||
Former CEO, Compaq | 75 | 1997 | – | – | – | Ch | ∎ | ∎ | ∎ | ∎ | ∎ | |||||||||||||||||||||||
Computer Corporation
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Key: A- Audit C- Compensation NCG- Nomination and Corporate Governance M- Member Ch- Chair
1 Mr. Canion has not been nominated forre-election to the Board because he has reached the mandatory retirement age.
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Looking forward
We remain focused on executing our strategy that aligns with our key areas of focus and continuing to invest ahead of client demand in these areas. At the same time, we are focused on optimizing our organizational model and disciplined expense management. This approach has resulted in strong organic growth, driving positive operating leverage and operating margin improvement. This has also facilitated stronger cash flows, further strengthening our balance sheet, and driving the improvement in our leverage profile. As we look toward the future, Invesco is in a very strong position to deliver value over the long run to all our clients and shareholders.
1. | Percentage is a rolling completion rate that includes new employees who are assigned training. |
2 Invesco Ltd. |
Governance highlights
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Board refreshment | ||||||
• Added 2 new directors to the Board in 2021, both of whom further increased Board diversity. | ||||||
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Independence | ||||||
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Independent Chair | ||||||
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Accountability | ||||||
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2022 Proxy Statement 3 |
Our Directors and their qualifications
| Directors are highly qualified and have the significant leadership and professional experience, knowledge and skills necessary to provide effective oversight and guidance for Invesco’s global strategy and operations. |
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• | Tenure of the members of our Board of Directors provides the appropriate balance of expertise, experience, continuity and |
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• | Board diversity: The Board’s overall diversity is an important consideration in the director recruitment and nomination process. |
– | The Board has adopted a Board-level diversity policy that recognizes that it benefits from the contribution of different perspectives, experiences and characteristics which promote better corporate governance. |
– | The Board seeks to maintain a Board with a range of experiences, knowledge, skills, backgrounds, viewpoints, and characteristics that collectively address the needs of the company. |
– | The Board believes diversity allows the Board to make more informed judgments. With respect to diversity characteristics, the Board and its nomination and corporate governance committee considers gender, race, ethnicity, country of origin, nationality or cultural background, and other personal characteristics. |
– | In assessing nominees, the committee will consider how a prospective candidate would affect the diversity of the Board. |
For more information on our director nomination process, see Information about Director Nominees—Director Recruitment.
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Average tenure 8 years | Director nominees composition | |||||||
Average age 65 years | ||||||||
New directors in 2021 | Director tenure Director independence | |||||||
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4 Invesco Ltd. |
Qualifications, skills and experience of directors Our Board strives to maintain a well-rounded Board and recognizes the value of industry experience and institutional knowledge as well as new ideas and perspectives. We consider candidates with diverse capabilities across a broad range of industries, including one or more of those listed below. | ||||||||||||||||
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Public company CEO
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International experience | 9 | |||||||||||||
Directors with public company chief executive officer backgrounds bring valuable practical experience to our Board, providing insights into challenging issues while remaining focused on our strategic initiatives
| We invest and provide investment solutions globally, making international experience an important perspective to our Board | |||||||||||||||
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Industry experience
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Executive strategy and execution | 10 | |||||||||||||
A key to our success is our ability to provide asset management excellence and directors with backgrounds in the financial services industry and capital markets help provide oversight of our strategy
| Directors with experience developing and executing a strategic direction for an entity assist the Board in providing oversight of the company’s strategy in a rapidly evolving business environment | |||||||||||||||
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Accounting and financial reporting
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Technical - government, legal, regulatory and technology | 4 | ||||||||||
We are subject to complex financial reporting obligations and we benefit from having directors with strong accounting and financial reporting experience | Substantive government, legal, regulatory and technology experience on our Board offers us valuable insights into the environment in which we operate and the implications to our business
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2022 Proxy Statement 5 |
Diversity, equity and inclusion Fundamentally, we believe that in order to best help our clients and employees get more out of life, our workforce should reflect the diversity of people and perspectives of the communities we serve. We believe that diversity, equity and inclusion (“DEI”) are both moral and business imperatives. At Invesco, we are committed to improving diversity and inclusion across our global business. Below is a snapshot of our key demographics and DEI programs. |
Our employees’ diversity by the numbers for 2021 | ||||||||||
35% Female senior managers | 8,500+ Employees across the globe | |||||||||
From 2018 to 2021, we have increased female representation of senior managers from 27% to 35% globally. | 50+ cities in 27 countries | |||||||||
61% of candidate slates are diverse | 80% of interview panels are diverse | 86%1 of employees have completed unconscious bias training | ||||||||
11 Business Resource Groups hosted over 70 events globally | ||||||||||
Target is 95% diverse candidate slates and interview panels | ||||||||||
1. Percentage is a rolling completion rate that includes new employees who are assigned training.
You are being asked to cast votes for eight directors: Sarah E. Beshar, Martin L. Flanagan, William F. Glavin, Jr., C. Robert Henrikson, Denis Kessler, Sir Nigel Sheinwald, G. Richard Wagoner, Jr. and Phoebe A. Wood. Mr. Canion has not been nominated forre-election to the Board because he has reached the mandatory retirement age.
A director holds office until such director’s successor has been duly elected and qualified or until such director’s death, resignation or removal from office under ourBye-Laws. Each director is elected for aone-year term ending at the 2021 Annual General Meeting.
6 Invesco Ltd. |
Election of directors
You are being asked to cast votes for eleven director nominees: Sarah E. Beshar, Thomas M. Finke, Martin L. Flanagan, William F. Glavin, Jr., C. Robert Henrikson, Denis Kessler, Sir Nigel Sheinwald, Paula C. Tolliver, G. Richard Wagoner, Jr., Christopher C. Womack and Phoebe A. Wood.
FOR |
Recommendation of the
Vote required: This proposal requires the affirmative vote of a majority of votes cast at the Annual General Meeting. |
6
2022 Proxy Statement 7 |
Sarah E. Beshar Sarah Beshar has served as anon-executive director of our company since 2017 and has been an attorney with Davis Polk & Wardwell LLP for over 30 years. She joined the firm in 1986 and was named a partner in the Corporate Department in 1994. During more than three decades as a corporate lawyer, Ms. Beshar has advised Fortune 500 companies on an array of legal and governance issues. She also served in a number of management roles at the firm, including as the lead partner of one of the firm’s largest financial services clients from 2008 to 2015. She presently serves as Senior Counsel at the firm.
Ms. Beshar is a member of the corporate
Director qualifications
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Thomas M. Finke Mr. Finke has served as a non-executive director of our company since 2020. Mr. Finke served as Chairman and Chief Executive Officer of Barings from 2016 through 2020 when he retired. He joined Barings predecessor Babson Capital Management in 2002 when Babson acquired First Union Institutional Debt Management. Mr. Finke was appointed Chairman and CEO of Babson Capital in December of 2008, and also served as EVP and CIO of Massachusetts Mutual Life Insurance Company from 2008 until 2011. He earned a Master of Business Administration degree from Duke University’s School of Business and a bachelor’s degree from the University of Virginia’s McIntire School of Commerce. Director qualifications • Executive leadership: Mr. Finke’s service as Chairman and CEO of Barings, an international investment management firm with over $300 billion of assets under management, and his other executive positions throughout his career provide Mr. Finke with an astute understanding of the skills needed for exemplary leadership and management that will benefit our Board. • Industry experience: Mr. Finke’s 34-year financial career has included roles in both the banking and investment management industries providing him with an extensive knowledge of the investment management industry. • Public company board experience: Mr. Finke is currently Chair of the Board of Directors of Adara Corp., a special purpose acquisition company. In his role at Barings, Mr. Finke served as a director of the Barings Funds Trusts, Barings Global Short Duration Fund and Barings Business Development Corp. |
8 Invesco Ltd.
Martin L. Flanagan
President and CEO
Age Tenure
61 17 Years
Qualifications:
William F. Glavin, Jr.
Non-executive director
Age Tenure
63 3 Years
Committees:
Qualifications:
Martin L. Flanagan
Martin Flanagan has been a director and President and Chief Executive Officer of Invesco since 2005. He is also a trustee and vice-Chair of the Invesco Funds (the company’s U.S. open- and closed-end funds). Mr. Flanagan joined Invesco from Franklin Resources, Inc., where he was president and co-chief executive officer from 2004 to 2005. Previously, he held numerous positions of increasing responsibility at Franklin — co-president, chief operating officer, chief financial officer and senior vice president – from 1993 to 2003. Mr. Flanagan served as director, executive vice president and chief operating officer of Templeton, Galbraith & Hansberger, Ltd., before its acquisition by Franklin in 1992. Before joining Templeton in 1983, he worked with Arthur Andersen & Co. He serves as Trustee of Southern Methodist University (SMU) and as a member of the executive Board at the SMU Cox School of Business. Mr. Flanagan is a member of the International Advisory Council of China Securities Regulatory Commission. He serves as Chair of Engage Ventures, an innovation platform bringing together Atlanta-based corporations to support startups. He sits on the Executive Council for the Metro Atlanta Chamber and served as 2020 MAC Chair. Mr. Flanagan formerly served as chair and vice chair on the executive committee and on the Board of Governors for the Investment Company Institute. He serves as a Board member of the Atlanta Committee for Progress and is a former ACP Chair. Mr. Flanagan is a CFA charterholder and a certified public accountant. He earned a B.A. and B.B.A. from Southern Methodist University (SMU).
Director qualifications
William F. Glavin, Jr.
William (“Bill”) F. Glavin, Jr. has served as a non-executive director of our company since 2019 and is nominated pursuant to a shareholder agreement with Massachusetts Mutual Life Insurance Company described on pages 30 - 32. Mr. Glavin served as vice chairman of MM Asset Management Holding LLC from 2015 until his retirement in 2017. Previously, Mr. Glavin served as chair of OppenheimerFunds Inc., (“OppenheimerFunds”), from 2009 to 2015, as chief executive officer from 2009 to 2014, and as president from 2009 to 2013. Prior to joining OppenheimerFunds, Mr. Glavin held several senior executive positions at MassMutual Financial Group, including co-chief operating officer from 2007 to 2008 and executive vice president, U.S. Insurance Group from 2006 to 2008. He served as president and chief executive officer of Babson Capital Management LLC (“Babson”), now known as Barings, LLC, a wholly owned indirect subsidiary of MassMutual, from 2005 to 2006, and chief operating officer of Babson from 2003 to 2005. Prior to joining MassMutual, Mr. Glavin was president and chief operating officer of Scudder Investments from 2000 to 2003. Mr. Glavin held senior positions at the Dreyfus Corporation, the Boston Company, State Street Bank and Trust Company, and Procter & Gamble. Mr. Glavin earned a B.A. from the College of the Holy Cross.
Director qualifications
2022 Proxy Statement 9 |
C. Robert Henrikson
Non-executive director
Age Tenure
74 10 Years
Committees:
Qualifications:
Denis Kessler
Non-executive director
Age Tenure
70 20 Years
Committees:
Qualifications:
C. Robert Henrikson
Robert Henrikson has served as a non-executive director of our company since 2012. Mr. Henrikson was president and chief executive officer of MetLife, Inc. and Metropolitan Life Insurance Company from 2006 through 2011. During his more than 39-year career with MetLife, Inc., Mr. Henrikson held a number of senior positions in that company’s individual, group and pension businesses. He currently serves on the Bipartisan Policy Center’s Commission on Retirement Security and Personal Savings and the Board of Directors of the Bipartisan Center. Mr. Henrikson is a former Chairman of the American Council of Life Insurers, a former Chairman of the Financial Services Forum and a director emeritus of the American Benefits Council. Mr. Henrikson also serves as Chairman of the Board of the S.S. Huebner Foundation for Insurance Education, as a trustee emeritus of Emory University and of Americares. Mr. Henrikson earned a bachelor’s degree from the University of Pennsylvania and a J.D. degree from Emory University School of Law. In addition, he is a graduate of the Wharton School’s Advanced Management Program.
Director qualifications
Denis Kessler
Denis Kessler has served as a non-executive director of our company since 2002. Mr. Kessler currently serves as the non-executive chair of the board of SCOR SE and served as its chief executive officer and chair from 2002 through June 2021. Prior to joining SCOR, Mr. Kessler was Chairman of the French Insurance Federation, senior executive vice president and member of the executive committee of the AXA Group and executive vice chairman of the French Business Confederation. He is a member of the French Institute’s Academy of Moral and Political Sciences. Mr. Kessler is a Fellow of the French Institute of Actuaries and holds a PhD in economics and is a graduate of Ecole des Hautes Etudes Commerciales (HEC Paris). In addition, he holds honorary degrees from the Moscow Academy of Finance and the University of Montreal.
Director qualifications
10 Invesco Ltd.
Sir Nigel Sheinwald
Non-executive director
Age Tenure
68 7 Years
Committees:
Qualifications:
Paula C. Tolliver
Non-executive director
Age Tenure
57 1 Year
Committees:
Qualifications:
Sir Nigel Sheinwald
Sir Nigel Sheinwald has served as a non-executive director of our company since 2015. Sir Nigel was a senior British diplomat who served as British Ambassador to the United States from 2007 to 2012, before retiring from Her Majesty’s Diplomatic Service. Previously, he served as Foreign Policy and Defence Adviser to the Prime Minister from 2003 to 2007 and as British Ambassador and Permanent Representative to the European Union in Brussels from 2000 to 2003. Sir Nigel joined the Diplomatic Service in 1976 and served in Brussels, Washington, Moscow, and in a wide range of policy roles in London. From 2014 to 2015, Sir Nigel served as the Prime Minister’s Special Envoy on intelligence and law enforcement data sharing. Sir Nigel also serves as a senior advisor to the Universal Music Group and Tanium, Inc. He is the Chair of the Royal Institute of International Affairs (Chatham House) and a visiting professor at King’s College, London. In addition, Sir Nigel serves on the Advisory Boards of the Ditchley Foundation, BritishAmerican Business and the Centre for European Reform. He is an Honorary Bencher of the Middle Temple, one of London’s legal inns of court. Sir Nigel received his M.A. degree from Balliol College, University of Oxford, where he is now an Honorary Fellow.
Director qualifications
Paula C. Tolliver
Paula C. Tolliver has served as a non-executive director of our company since May 2021. She is the founder and principal of TechEdge, a consulting firm specializing in advising executive leadership on information technology strategies. Ms. Tolliver previously served as corporate vice president and chief information officer at Intel Corporation, a technology company, from 2016 to 2019. Prior to joining Intel, Ms. Tolliver served as corporate vice president of Business Services and chief information officer at The Dow Chemical Company (a wholly owned subsidiary of Dow, Inc.) from 2012 to 2016. Ms. Tolliver also led a services business for Dow Chemical, in addition to holding a variety of other roles in her 20 plus years with the company. She has served as a director of Syniti, a private company, since and currently serves on its technology committee. Ms. Tolliver earned a bachelor’s degree in Business Information Systems and Computer Science from Ohio University.
Director qualifications
2022 Proxy Statement 11 |
G. Richard Wagoner, Jr.
Chair of the Board
Age Tenure
69 9 Years
Committees:
Qualifications:
Christopher C. Womack
Non-executive director
Age Tenure
64 <1 Year
Committees:
Qualifications:
G. Richard Wagoner, Jr.
G. Richard (“Rick”) Wagoner, Jr. has served as Chair of our company since May 2019 and as a non-executive director of our company since 2013. Mr. Wagoner served as Chairman and chief executive officer of General Motors Corporation (“GM”) from 2003 through March 2009, and had been president and chief executive officer since 2000. Prior positions held at GM during his 32-year career with that company include president and chief operating officer, executive vice president and president of North American operations, executive vice president, chief financial officer and head of worldwide purchasing, and president and managing director of General Motors do Brasil. Mr. Wagoner is a member of the Board of Directors of Excelitas Technologies, a privately-held company. In addition, he advises several financial firms, start-ups and early-stage ventures. Mr. Wagoner is a member of the Duke University’s Health System Board of Directors and chair of the Duke Kunshan University Advisory Board. He previously chaired the Duke University Board of Trustees and served on the Virginia Commonwealth University Board of Visitors. In addition, he is a honorary member of the mayor of Shanghai, China’s International Business Leaders Advisory Council and the Catalyst Board of Directors. Mr. Wagoner received his B.A. from Duke University and his M.B.A. from Harvard University.
Director qualifications
Christopher C. Womack
Christopher C. Womack has served as a non-executive director of our company since October 2021 and is the chairman, president and CEO of Georgia Power Company, a subsidiary of The Southern Company, one of the nation’s leading energy providers. Prior to being named to his current role in 2021, he served as executive vice president and president of external affairs for The Southern Company where he led overall external positioning and branding efforts. Mr. Womack joined The Southern Company in 1988 and has held several leadership positions within The Southern Company and its subsidiaries. He has served as executive vice president of external affairs at Georgia Power Company and senior vice president and senior production officer of Southern Company Generation, where he was responsible for coal, gas, and hydro generation for Georgia Power Company and Savannah Electric. He also served as senior vice president of human resources and chief people officer at The Southern Company, as well as senior vice president of public relations and corporate services at Alabama Power Company. Prior to joining The Southern Company, Mr. Womack worked for the US House of Representatives for then-Congressman Leon E. Panetta. He holds a bachelor’s degree from Western Michigan University and a master’s degree from The American University. Mr. Womack is currently pursuing his doctorate degree in political science at Clark Atlanta University.
Director qualifications
12 Invesco Ltd.
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| Phoebe A. Wood Phoebe Wood has served as a non-executive director of our company since 2010. She is currently a principal at CompaniesWood and served as vice chairman, chief financial officer and in other capacities at Brown-Forman Corporation from 2001 until her retirement in 2008. Prior to Brown-Forman, Ms. Wood was vice president, chief financial officer and a director of Propel Corporation (a subsidiary of Motorola) from 2000 to 2001. Previously, Ms. Wood served in various capacities during her tenure at Atlantic Richfield Company (ARCO) from 1976 to 2000. Ms. Wood currently serves
Director qualifications
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In accordance with the rules of the New York Stock Exchange (“NYSE”), the Board has affirmatively determined that it is currently composed of a majority of independent directors, and that the following directors are independent and do not have a material relationship with the company: Sarah E. Beshar, Thomas M. Finke, William F. Glavin, Jr., C. Robert Henrikson, Denis Kessler, Sir Nigel Sheinwald, Paula C. Tolliver, G. Richard Wagoner, Jr., Christopher C. Womack and Phoebe A. Wood.
For a director to be considered independent, the Board must affirmatively determine that the director does not have any material relationship with the company either directly or as a partner, shareholder or officer of an organization that has a relationship with the company. Such determinations are made and disclosed according to applicable rules established by the NYSE or other applicable rules.
As part of its independence determinations, the Board considers any direct or indirect relationship between a director (or an immediate family member of such director) and the company or any third party involved with the company.
Board meetings and annual general meeting of shareholders
During the calendar year ended December 31, 2021, the Board held 10 meetings (not including committee meetings).
Each director attended at least seventy-five percent (75%) of the aggregate of the total number of meetings held by the Board and all committees of the Board on which he or she served during 2021.
All of our then-serving directors attended the 2021 Annual General Meeting. The Board does not have a formal policy regarding Board member attendance at shareholder meetings.
The non-executive directors (those directors who are not officers or employees of the company and who are classified as independent directors under applicable NYSE standards) meet in executive session each quarter at a minimum.
G. Richard Wagoner, Jr., our Chair and a non-executive director, presides at the executive sessions of the non-executive directors.
2022 Proxy Statement 13 |
Committee membership and meetings
The current committees of the Board are the audit committee, the compensation committee and the nomination and corporate governance committee.
The Board has affirmatively determined that each committee consists entirely of independent directors according to applicable NYSE rules and rules promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including the heightened independence standards for compensation committee and audit committee members.
1214 Invesco Ltd.
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Sarah E. Beshar (Chair) Thomas M. Finke William F. Glavin, Jr. C. Robert Henrikson Denis Kessler Sir Nigel Sheinwald Paula C. Tolliver1 G. Richard Wagoner, Jr. Christopher C. Womack2 Phoebe A. Wood
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Meetings held in 2021: 4 | Under its charter, the committee: • is comprised of at least three members of the Board, each of whom is “independent” of the company under the NYSE and SEC rules; • members are appointed and removed by the Board; • meets at least four times annually; and • has the authority to retain independent advisors, at the company’s expense, whenever it deems appropriate to fulfill its duties. The committee’s charter sets forth its responsibilities, including: • establishing procedures for identifying and evaluating potential nominees for director; • recommending to the Board potential nominees for election; and • periodically reviewing and reassessing the adequacy of the Corporate Governance Guidelines to determine whether any changes are appropriate and recommending any such changes to the Board for its approval. The committee’s charter is available on the company’s website. For more information regarding the director recruitment process, see Information about Director Nominees - Director recruitment. |
13
The compensation committee annually reviews and determines the compensation paid to non-executive directors. No executive officer of the company is involved in recommending or determining non-executive director compensation levels. Mr. Flanagan does not receive compensation for his service as a director. The committee considers, among other things, the following policies and principles:
that compensation should fairly pay the non-executive directors for the work, time commitment and efforts required by directors of an organization of the company’s size and scope of business activities, including service on Board committees;
that a component of the compensation should be designed to align the non-executive directors’ interests with the long-term interests of the company’s shareholders; and
that non-executive directors’ independence may be compromised or impaired if director compensation exceeds customary levels.
As a part of its annual review, the committee engaged Johnson Associates, Inc. (“Johnson Associates”), the committee’s independent compensation consultant, to report on comparable non-executive director compensation practices and levels. Their report included a review of director compensation at the same peer companies the committee considers for executive compensation practices. See page 62 for a list of our 2021 peers.
In December 2020, following its annual review, the compensation committee determined that no changes would be made to the levels of non-executive director compensation that have been in place since 2014. The committee did, however, approve the transition of equity awards from quarterly grants for service in arrears to annual grants for service in advance. The one-year vesting requirement for equity awards remains in place.
1. | Ms. Tolliver joined the nomination and corporate governance committee effective as of May 13, 2021. |
2. | Mr. Womack joined the nomination and corporate governance committee effective as of October 13, 2021. |
2022 Proxy Statement 15 |
The compensation for non-executive directors for the 2021 service period was as follows. Each component other than the equity award is paid in quarterly installments in arrears:
Basic cash fee |
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The Chair of the Board | |||||
Chair fee | |||||
The | |||||
Compensation Committee and | The Chair of the compensation committee and the Chair of the nomination and corporate governance committee each received an additional annual cash fee of $15,000 | ||||
Basic shares fee | Non-executive directors also received an annual award of shares in the aggregate amount of $145,000. Equity awards are paid for service in advance and subject to a one-year vesting requirement |
In February 2022, the compensation committee approved the following changes to the non-executive director compensation for the 2022 service period: (i) decreasing the value of the annual chair cash fee from $280,000 to $230,000; (ii) increasing the value of the annual compensation committee chair and nomination and corporate governance committee chair cash fee from $15,000 to $20,000 and (iii) increasing the value of the annual equity award from $145,000 to $195,000.
14We also reimburse each of our non-executive directors for their travel expenses incurred in connection with attendance at Board of Directors and committee meetings. Directors do not receive any meeting or attendance fees. Invesco does not have a deferred compensation plan for its directors.
Stock ownership policy for non-executive directors — All shares granted to our non-executive directors are subject to the Non-Executive Director Stock Ownership Policy. The policy in 2021 required each non-executive director to achieve and thereafter maintain an ownership level of at least 18,000 shares within seven years of such director’s first appointment as a non-executive director. Until such ownership level was achieved, each non-executive director was required to (i) continue to hold 100% of the shares previously granted by the company and (ii) continue to retain at least 50% of all shares received as compensation from the company. The following table shows the status of our non-executive directors meeting the requirements of the policy as of December 31, 2021.
2021 Non-executive director stock ownership (based on policy for 2021) | ||||||||||||
Shares held as of December 31, 2021
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Name
| Shares held1
| Requirement met
| Name
| Shares held1
| Requirement met
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Beshar | 58,602 | Sheinwald | 45,423 | |||||||||
Finke2 | 7,693 | Tolliver2,3 | 9,522 | |||||||||
Glavin | 24,539 | Wagoner | 66,325 | |||||||||
Henrikson | 70,334 | Womack2,3 | 3,372 | |||||||||
Kessler | 81,940 | Wood | 53,566 |
1. | Includes shares beneficially owned and deferred share awards. |
2. | Based on current compensation levels, it is anticipated that Messrs. Finke and Womack and Ms. Tolliver will attain the share ownership goal within the time period prescribed by the policy. |
3. | Ms. Tolliver joined the Board effective May 13, 2021. Mr. Womack joined the Board effective October 13, 2021. |
In February 2022, the compensation committee approved changes to the Non-Executive Director Stock Ownership Policy. Under the terms of the updated policy, each non-executive director is required to (i) achieve and thereafter maintain an ownership level that is equal to four times the value of the annual cash retainer and (ii) meet the policy requirement within five years of the later of the effective date of the new policy or first appointment as a non-executive director. Until such ownership level is achieved, each non-executive director is required to (i) continue to hold 100% of the shares previously granted by the company, and (ii) retain at least fifty percent (50%) of all future shares to be granted by the company.
16 Invesco Ltd.
Director compensation table
The following table sets forth the compensation paid to our non-executive directors during 2021.
Name | Fees earned or paid in cash ($)1 | Share awards ($)2 | Total ($) | |||||||||
Sarah E. Beshar | 140,660 | 234,827 | 375,487 | |||||||||
Thomas M. Finke | 100,000 | 210,535 | 310,535 | |||||||||
Edward P. Garden3 | 109,048 | 221,403 | 330,451 | |||||||||
William F. Glavin, Jr. | 120,000 | 234,827 | 354,827 | |||||||||
C. Robert Henrikson | 135,000 | 234,827 | 369,827 | |||||||||
Denis Kessler | 120,000 | 234,827 | 354,827 | |||||||||
Nelson Peltz3 | 109,048 | 221,403 | 330,451 | |||||||||
Sir Nigel Sheinwald | 120,000 | 234,827 | 354,827 | |||||||||
Paula C. Tolliver4 | 46,190 | 144,973 | 191,163 | |||||||||
G. Richard Wagoner, Jr. | 400,000 | 234,827 | 634,827 | |||||||||
Christopher C. Womack4 | — | 84,570 | 84,570 | |||||||||
Phoebe A. Wood | 170,000 | 234,827 | 404,827 |
1. | Includes the annual basic cash fee and, as applicable, Chair of the Board fee and committee Chair fees. |
2. | Reflects the grant date fair value for each share award. |
3. | Mr. Garden and Mr. Peltz resigned from the Board effective February 1, 2022. |
4. | Ms. Tolliver was elected to the Board effective May 13, 2021. Mr. Womack was elected to the Board effective October 13, 2021. |
The following table presents the grant date fair value for each share award made to each non-executive director during 2021.
2021 Director grant date fair value
Name | Date of grant 1/27/21 ($) | Date of grant 4/29/21 ($) | Date of grant 5/15/21 ($)1 | Date of grant 10/15/21 ($) | Total grant date fair value ($) | |||||||||||||||
Sarah E. Beshar | 36,240 | 36,223 | 162,364 | — | 234,827 | |||||||||||||||
Thomas M. Finke | 11,949 | 36,223 | 162,364 | — | 210,535 | |||||||||||||||
Edward P. Garden2 | 22,816 | 36,223 | 162,364 | — | 221,403 | |||||||||||||||
William F. Glavin, Jr. | 36,240 | 36,223 | 162,364 | — | 234,827 | |||||||||||||||
C. Robert Henrikson | 36,240 | 36,223 | 162,364 | — | 234,827 | |||||||||||||||
Denis Kessler | 36,240 | 36,223 | 162,364 | — | 234,827 | |||||||||||||||
Nelson Peltz2 | 22,816 | 36,223 | 162,364 | — | 221,403 | |||||||||||||||
Sir Nigel Sheinwald | 36,240 | 36,223 | 162,364 | — | 234,827 | |||||||||||||||
Paula C. Tolliver3 | — | — | 144,973 | — | 144,973 | |||||||||||||||
G. Richard Wagoner, Jr. | 36,240 | 36,223 | 162,364 | — | 234,827 | |||||||||||||||
Christopher C. Womack3 | — | — | — | 84,570 | 84,570 | |||||||||||||||
Phoebe A. Wood | 36,240 | 36,223 | 162,364 | — | 234,827 |
1. | Beginning in May 2021, equity awards changed from being granted on a quarterly basis to an annual basis. |
2. | Mr. Garden and Mr. Peltz resigned from the Board effective February 1, 2022. |
3. | Ms. Tolliver was elected to the Board effective May 13, 2021. Mr. Womack was elected to the Board effective October 13, 2021. |
2022 Proxy Statement 17 |
Director outstanding awards table
The following table provides information about outstanding equity awards held by our non-executive directors as of December 31, 2021.
Name | Date of grant | Number of shares or units
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Sarah E. Beshar | 01/27/21 | 1,744 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 8,862 | |||||||||||
Thomas M. Finke | 01/27/21 | 575 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 7,693 | |||||||||||
Edward P. Garden3 | 01/27/21 | 1,098 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 8,216 | |||||||||||
William F. Glavin, Jr. | 01/27/21 | 1,744 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 8,862 | |||||||||||
C. Robert Henrikson | 01/27/21 | 1,744 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 8,862 | |||||||||||
Denis Kessler | 01/27/21 | 1,744 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 8,862 | |||||||||||
Nelson Peltz3 | 01/27/21 | 1,098 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 8,216 | |||||||||||
Sir Nigel Sheinwald | 01/27/21 | 1,744 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 8,862 | |||||||||||
Paula C. Tolliver4 | 05/15/21 | 5,185 | ||||||||||
Total | 5,185 | |||||||||||
G. Richard Wagoner, Jr. | 01/27/21 | 1,744 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 8,862 | |||||||||||
Christopher C. Womack4 | 10/15/21 | 3,372 | ||||||||||
Total | 3,372 | |||||||||||
Phoebe A. Wood | 01/27/21 | 1,744 | ||||||||||
04/29/21 | 1,311 | |||||||||||
05/15/21 | 5,807 | |||||||||||
Total | 8,862 |
1. | Equity awards vest in one installment on the anniversary of the date of grant. |
2. | Dividends and dividend equivalents on unvested equity awards are paid at the same time and rate as on our shares. |
3. | Mr. Garden and Mr. Peltz resigned from the Board effective February 1, 2022. |
4. | Ms. Tolliver was elected to the Board effective May 13, 2021. Mr Womack was elected to the Board effective October 13, 2021. |
18 Invesco Ltd.
Corporate governance guidelines
The Board has adopted Corporate Governance Guidelines (“Guidelines”) and Terms of Reference for our Chair and for our Chief Executive Officer, each of which is available in the corporate governance section of the company’s website. The Guidelines set forth the practices the Board follows with respect to, among other matters, the composition of the Board, director responsibilities, Board committees, director access to officers, employees and independent advisors, director compensation and performance evaluation of the Board.
Code of conduct and directors’ code of conduct
As part of our ethics and compliance program, our Board has approved a code of ethics (the “Code of Conduct”) that applies to our principal executive officer, principal financial officer, principal accounting officer and persons performing similar functions, as well as to our other officers and employees. The Code of Conduct is posted on the company’s website. In addition, we have adopted a separate Directors’ Code of Conduct that applies to all members of the Board. We intend to satisfy the disclosure requirement regarding any amendment to, or a waiver of, a provision of the Code of Conduct for our directors and executive officers by posting such information on the company’s website. The company maintains a compliance reporting line, where employees and individuals outside the company can anonymously submit a complaint or concern regarding compliance with applicable laws, rules or regulations, the Code of Conduct, as well as accounting, auditing, ethical or other concerns.
As described in the Guidelines, the company’s business is conducted day-to-day by its officers, managers and employees, under the direction of the Chief Executive Officer and the oversight of the Board, to serve the interest of our clients and enhance the long-term value of the company for its shareholders. The Board is elected by the shareholders to oversee our management team and to seek to assure that the long-term interests of the shareholders are being served. In light of these differences in the fundamental roles of the Board and management, the company has chosen to separate the Chief Executive Officer and Board Chair positions. The Board believes separation of these roles: (i) allows the Board to more effectively monitor and evaluate objectively the performance of the Chief Executive Officer, such that the Chief Executive Officer is more likely to be held accountable for his performance; (ii) allows the non-executive Chair to control the Board’s agenda and information flow; and (iii) creates an atmosphere in which other directors are more likely to challenge the Chief Executive Officer and other members of our senior management team. For these reasons, the company believes that this Board leadership structure is currently the most appropriate structure for the company. Nevertheless, the Board may reassess the appropriateness of the existing structure at any time, including following changes in Board composition, in management or in the character of the company’s business and operations.
The nomination and corporate governance committee identifies new directors using the following process:
The committee reviews and updates its criteria for prospective directors based on succession planning for directors, to fill gaps in skill sets among current directors and to address new or evolving needs of the company. The
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Candidates meet with the corporate governance committee considers gender, race, ethnicity, country of origin, nationality or cultural background, and other personal characteristics. | ||||||
2022 Proxy Statement 19 |
Due diligence is conducted, including soliciting feedback on potential candidates from persons outside the | ||||||||
Two new directors | ||||||||
• Gender and • Technical -
government, legal, regulatory and technology |
• International experience • Executive strategy and
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The nomination and corporate governance committee believes there are certain minimum qualifications that each director nominee must satisfy in order to be suitable for a position on the Board, including that such nominee:
be an individual of the highest integrity and have an inquiring mind, a willingness to ask hard questions and the ability to work well with others;
be free of any conflict of interest that would violate any applicable law or regulation or interfere with the proper performance of the responsibilities of a director;
be willing and able to devote sufficient time to the affairs of the company and be diligent in fulfilling the responsibilities of a director; and
have the capacity and desire to represent the best interests of the shareholders as a whole.
The committee will consider candidates recommended for nomination to the Board by shareholders of the company. Shareholders may nominate candidates for election to the Board under Bermuda law and our Bye-Laws. The manner in which the committee evaluates candidates recommended by shareholders would be generally the same as any other candidate. However, the committee would also seek and consider information concerning any relationship between a shareholder recommending a candidate and the candidate to determine if the candidate can represent the interests of all of the shareholders. For further information regarding deadlines for shareholder proposals, see Important additional information — Shareholder proposals for the 2023 annual general meeting on page 85.
Director orientation and continuing education and development
When a new independent director joins the Board, we provide an orientation program for the purpose of providing the new director with an understanding of the strategy and operations of the company. To assist the directors in understanding the company and its industry and maintaining the level of expertise required for our directors, the company‘s management team makes presentations during Board meetings relating to the competitive and industry environment and the company’s goals and strategies. In addition, at most meetings the Board receives presentations on various topics related to key industry trends, topical business issues and governance.
Each director is encouraged to participate in continuing education programs for public company directors sponsored by nationally recognized educational organizations not affiliated with the company. The cost of all such continuing education is paid for by the company.
The questionnaire and then performs
The advisor prepares and
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The Board then discusses the evaluation to determine what action, if any, could further enhance the operations of the Board | ||||||
1520 Invesco Ltd.
Why we engage
One of our key priorities is ensuring robust outreach and engagement with our shareholders in order to:
Provide transparency into our business, governance practices and compensation programs
Determine which issues are important to our shareholders and share our views on those issues
Identify emerging trends or issues that may impact our business and influence our practices
How we engage
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We provide institutional investors with many opportunities to provide feedback to senior management by participating in conferences, | |||||||||
| Shareholders | ||||||||
Consistently for many years, we have engaged with representatives of our major shareholders through conference calls that occur outside of proxy season. These exchanges cover our executive compensation program, risk management, ESG, strategic planning processes and current and emerging governance practices generally and specifically with respect to Invesco.
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How we interact • Conference attendance • Investor meetings • One-on-one meetings with shareholders • Outreach, calls and meetings with investor corporate governance departments • Universal access to an email address for shareholders who wish to contact our Board |
• Strategic planning • Company performance and progress against our
• Executive compensation program • Current and emerging corporate governance practices and industry trends, including ESG considerations • Board
leadership structure |
In addition to our year-round shareholder engagement, we also conduct a targeted shareholder and proxy adviser outreach in the Fall of each year. See Shareholder and proxy advisory engagement and feedback for more information on this outreach and related findings.
2022 Proxy Statement 21 |
Communications with the Chair and other non-executive directors
Any interested party may communicate with the Chair of our Board or our non-executive directors as a group at the following address:
Invesco Ltd.
1555 Peachtree Street NE
Atlanta, Georgia 30309
Attn: Office of the Company Secretary, Legal Department
Communications will be distributed to the Board, or to any of the Board’s committees or individual directors as appropriate, depending on the facts and circumstances of the communication. In that regard, the Invesco Board does not receive certain items which are unrelated to the duties and responsibilities of the Board.
In addition, the company maintains the Invesco Whistleblower Hotline for its employees or individuals outside the company to report complaints or concerns on an anonymous and confidential basis regarding questionable accounting, internal accounting controls or auditing matters and possible violations of the company’s Code of Conduct or law. Further information about the Invesco Whistleblower Hotline is available at the company’s website.
Non-employees may submit any complaint regarding accounting, internal accounting controls or auditing matters directly to the audit committee of the Board of Directors by sending a written communication addressed to the audit committee at the address set forth above.
16Board’s role in risk oversight 1 As
The Board has oversight responsibility for the company’s risk management processes including the monitoring of October 31, 2019the company’s overall risk profile. Though Board committees address specific risks and risk processes within their purview, the Board has not delegated risk oversight to a committee as full Board engagement supports appropriate consideration of risk in strategy setting and a more holistic understanding of risk across the enterprise.
Invesco is committed to continually strengthening and evolving our risk management activities to ensure they keep pace with business change and client expectations. We believe a key factor in our ability to manage through challenging market conditions and significant business change is our integrated and global approach to risk management. Risk management is embedded in our day-to-day decision-making as well as our strategic planning process while our global risk management framework enables consistent and meaningful risk dialogue up, down and across the company. Our framework leverages two governance structures: (i) our Global Performance and Risk Committee oversees the management of core investment risks; and (ii) our Corporate Risk Management Committee oversees the management of all other business and strategy related risks. A network of regional, business unit and specific risk management committees, with oversight of the Corporate Risk Management Committee, provides ongoing identification, assessment, management and monitoring of risk that ensures both broad as well as in-depth, multilayered coverage of the risks existing and emerging in the various domains of our business.
One of these risk management committees, the Global Security Oversight Committee, provides executive level oversight and monitoring of the end-to-end programs dedicated to managing information security and cyber related risk. Important to these programs is our investment in threat-intelligence, our active engagement in industry and government security-related forums and our utilization of external experts to challenge our program maturity, assess our controls and routinely test our capabilities.
The Board reviews and discusses with executive and senior management risk management information and reporting provided, at least quarterly, by the Global Performance and Risk Committee and the Corporate Risk Management Committee. The Board also reviews and approves the company’s risk appetite statement and crisis management framework. By receiving these reports, the Board maintains a practical understanding of the company’s risk management processes, overall risk profile and risk culture. In addition, Board and committee agenda business-related topics include discussion of the risks in our ongoing business as well as those introduced by new business developments. Through this regular and consistent risk communication and dialogue, the Board seeks to maintain reasonable assurance that all material risks of the company are being addressed and that the company is fostering a risk-aware culture in which effective risk management is embedded in the business.
22 Invesco Ltd.
In addition, the compensation committee annually assesses the risks of our compensation policies and practices. The compensation committee has concluded our policies and practices do not create risks that are reasonably likely to have a material adverse effect on the company. In reaching this conclusion, the compensation committee considered the input of a working group comprised of representatives from our human resources and finance departments that reviewed each of Invesco’s compensation plans.
Invesco’s compensation programs are designed to reward success over the long-term, promote a longer-term view of risk and return in decision making and seek to protect against incentives for inappropriate risk taking. Examples of risk mitigation in our compensation program design include:
Consideration of multiple performance metrics in establishing the company-wide annual incentive pool each year, so no one metric creates an undue reward that might encourage excessive risk taking;
The vast majority of investment professional bonus plans have multi-year measurement periods and are weighted to longer-term performance, caps on earnings and discretionary components;
Sales and commission plans generally contain multiple performance measures and discretionary elements; and
Executives receive a substantial portion of compensation in the form of long-term equity that vests over multi-year periods. Time-based equity awards vest ratably over a four-year period. Performance-based equity awards for executive officers are subject to a three-year performance period and three-year cliff vesting. The achievement of financial performance for the performance-based equity awards must be certified by the compensation committee and the awards are subject to a clawback. Executive officers are also subject to our stock ownership policy.
The audit committee routinely receives reports from the control functions of finance, legal, compliance and internal audit. The Chief Risk and Audit Officer reports to the Chair of the audit committee. The audit committee oversees the internal audit function’s planning and resource allocation in a manner designed to ensure testing of controls and other internal audit activities are appropriately prioritized in a risk-based manner. The audit committee also seeks to assure that appropriate risk-based inputs from management and internal audit are communicated to the company’s independent public auditors.
Cyber security
Cyber threats are considered one of the most significant risks facing financial institutions. To mitigate that risk, we have a designated Global Chief Security Officer and have a global security program that brings together Information Security, Global Privacy, Business Continuity & Crisis Management, Operational Resilience, Corporate Security, Business Security Officers and Strategy, Projects & Governance in collaboration with Global Intelligence & Threat Analysis. This structure supports a more comprehensive, holistic approach to keeping Invesco clients, employees, and critical assets safe, upholding their privacy rights, while enabling a secure and resilient business.
Our information security program, led by our Chief Information Security Officer, is designed to oversee, and maintain all aspects of information security risk and seeks to ensure the confidentiality, integrity, and availability of information assets. This includes the implementation of controls aligned with industry guidelines and applicable statutes and regulations to identify threats, detect attacks and protect these information assets. We have an incident response program that includes periodic testing and is designed to restore business operations as quickly and as orderly as possible in the event of a breach or third-party incident.
2022 Proxy Statement 23 |
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Invesco is putting ESG at the forefront of our role as investors
ESG integration everywhere We are working towards integrating ESG for 100% of our strategies by 2023. | Benefiting from diversity of thought We value diversity of thought so our ESG implementation is not generic. Our Global ESG team functions as a center of excellence, setting standards and providing specialist insights. Invesco’s Chief Investment Officers and teams may leverage this resource and the capability to tailor and implement ESG approaches relevant to their asset classes and investment styles. | Using our influence Much of our work is rooted in fundamental research and frequent dialogue with companies making Invesco well placed to use our ESG expertise and beliefs in ways that drive corporate change. As a provider of both active | ||||||
influence systemic industry developments. | Climate as a focus topic Climate change is a key focus for us and our clients. In March 2021, we joined the Net Zero Asset Managers Initiative (NZAMI) and are committed to supporting the worldwide goal of achieving net- zero greenhouse gas emissions by 2050 or sooner. For more detail please see our Climate Change Report on our company website. | A commitment to solutions Increasingly, our clients want us to provide the means for them to explicitly express their own ESG values through investment vehicles. We will continue to develop innovative solutions and products to deliver for them. Already, we manage more than $96 billion in dedicated sustainable investing strategies and we will build on our experience. |
For more information regarding Invesco’s ESG investment stewardship, please see our most recent ESG Investment Stewardship Report on the company’s website.
1. | As of 12/31/2021. |
2. | Invesco |
2024 Invesco Ltd.
Commitment to Principles for Responsible Investment (PRI) Invesco is a strong advocate of responsible investing practices, formalizing our commitment globally in 2013 when we became a signatory of the PRI. We believe that our policies, processes and overall company approach value the spirit of the PRI and demonstrate Invesco’s commitment to stewardship. | Seven Invesco Real Estate-managed funds received five out of five Green Stars from GRESB Placing these funds in
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Industry engagement
We are involved with several external organizations and various industry advocacy groups through membership and other means of support. Invesco believes that ESG investing is an essential part of the solution to creating a sustainable future and by being part of the industry dialogue, we reconfirm our commitment to ESG investing for the long term.
Invesco is a member and supporter of numerous external organizations largely via the different investment centers, including: | ||||||
• PRI Investor Signatory • Task Force for Climate Related Disclosure (TCFD) (Supporter and Discloser) • Carbon Disclosure Project (CDP) (Investor Member and Discloser) • Sustainability Accounting Standards Board (SASB) • Global Real Estate Sustainability Benchmark (GRESB) • Climate Bonds Initiative (Partner) • Confluence Philanthropy Associate Advisor Member • Farm Animal Investment Risk & Return Initiative (FAIRR) • UK Stewardship Code | • Japanese Stewardship Code (Signatory) • Quoted Companies Alliance (QCA) • UK Sustainable Investment and Finance Association (UKSIF) • Investment Association (UK) • Asian Corporate Governance Association (ACGA) • Italian Sustainable Forum (ItaSIF) • Council of Institutional Investors (CII) (US) • Responsible Investment Association (RIA) (Canada) • Responsible Investment Association Australia (RIAA) (Australia) | |||||
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• Climate Action 100+ (Leader and Participant) • Coalition for Climate Resilient Investment (CCRI) (Founding Member) • World Economic Forum Financing the Transition to • Sustainability Accounting Standards Board (SASB) Standards Advisory Group • One Planet Asset Managers Initiative (OPAM) • Transition Pathway Initiative (TPI) • UKSIF Board of Directors • ICI Global ESG Task Force | • Quoted Companies Alliance (QCA) Financial Reporting Expert Group (UK) • Investor Forum (UK) • Asia Investor Group on Climate Change (AIGCC) • Institutional Investors Group on Climate Change (IIGCC) • IIGCC Net Zero Framework Working Groups • Active participation in PRI advisory committees and working groups |
2022 Proxy Statement 25 |
Invesco’s corporate stewardship
At Invesco, corporate stewardship matters. Our efforts are motivated by the belief that doing what is right for the environment, our people and the communities in which we have a presence helps us deliver positive outcomes for our shareholders. Our senior leaders and employees are committed to the communities where we live, work and volunteer. We actively partner with non-profits, start-ups and other organizations to strengthen our communities. Our areas of focus are:
• improving financial education • protecting the environment • promoting environmental sustainability
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• championing diversity and inclusion in our industry and our company • supporting and collaborating with | ||||||
Through Invesco Cares and Environmental Green Teams, local Invesco offices identify areas of need that are unique to each specific community. Our Environmental Green Teams focus on preserving and improving the environment by focusing on reducing carbon emissions, eliminating plastic consumption, promoting waste awareness and recycling electronic computers and laptops. These groups also volunteer to clean up local community parks, plant trees and clean up marine areas. The Invesco culture encourages employees to go beyond their work responsibilities, and join with like-minded colleagues, to make an impact in communities we serve. Invesco Cares partners with local charitable organizations around the globe through volunteering, sharing our skills, and raising funds to improve the local communities where we work.
Invesco strives to align with the Global Reporting Initiative (GRI) standard reporting guidelines and Sustainability Accounting Standards Board (SASB) metrics for Asset Management & Custody Activities as further detailed in our Corporate Social Responsibility Report, which is available on the company website.
For 2020, Invesco offset 8,6491 tonnes of carbon dioxide emissions through our partnership with ClimateCare, representing all of our air and rail travel purchased through our third-party travel agency, which represents the majority of our air and rail travel for 2020. | ||||||
Invesco’s commitment to the natural environment | ||||||
Operating environmentally responsibly is fundamental to our corporate stewardship. Invesco seeks to help protect our natural environment by implementing and maintaining environmental management processes – for example, at Invesco offices we aim to reduce utility consumption and carbon emissions, promote energy efficiency and utilize appropriate waste management practices. | ||||||
Invesco has a structured program that monitors our environmental impact, gathers ideas and suggestions for improving our global environmental management practices and approves initiatives. Invesco maintains global objectives and regional targets which are monitored to seek to ensure the continual improvement of our impact on the environment. Our commitments and objectives are detailed in ourGlobal Corporate Carbon Emissions and Environmental Policy Statementwhich is available on the company’s website. | ||||||
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Commitment to | ||||||||
Fundamentally, we believe that in order to best help our clients and employees get more out of life, our workforce should reflect the diversity of people and perspectives of the communities we serve. We believe that diversity, equity and inclusion Our 4 pillar approach to diversity, equity and inclusion At Invesco, there are four key components to our |
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Purpose and priorities Ensuring DEI is a key part of who we are and how we operate | 2
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Talent Enhancing diversity and representation by focusing on the recruitment and advancement of diverse colleagues | 3
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Belonging Ensuring an inclusive culture where all colleagues feel safe and supported | 4 |
Client and community Moving our industry and our communities forward |
1. 2020 is the latest data available at the date of |
26 Invesco Ltd.
Purpose and priorities
Ensuring that every Invesco colleague has a clear role to play in our DEI efforts is critical to our success. This begins at the top, where our CEO and each one of our Senior Managing Directors continue to have DEI embedded in their annual performance goals. Executives also lead and sit on our Diversity and Inclusion Executive Committee, helping to push our agenda further and drive accountability into the organization.
From 2018 to 2021, we have increased female representation of senior | ||||||||
managers from 27% to 35%globally. |
Increasing diverse talent has been a key focus since we formally launched our DEI initiatives. • We | |||||||
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Belonging While representation of diverse colleagues is a key focus, we know that success goes hand in hand with an inclusive culture. In 2021, these efforts included: • Mandatory unconscious bias training for our global staff. • Business Resource Groups: Invesco supports a variety of BRGs — grassroots employee networks that represent the diversity of our employees. BRGs build partnerships and networks internally and drive a sense of belonging across the company. In 2021 we launched two new BRGs, bringing us to a total of 11, and our employees hosted over 70 BRG events globally. | ||||||||
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Client and community We actively engage with external partners to inform our DEI strategy and drive our initiatives forward. For example, in 2021 Invesco co-hosted “Beyond Talk,” an industrywide conference with CalSTRS focused on accelerating racial and gender diversity and inclusion within the investment management industry. We also signed The Race at Work Charter, which calls for companies to take seven actions to ensure that ethnic minority employees are represented at all levels. | |||||||
Measuring success All of these efforts are sponsored by our CEO and senior managing directors, supported by our senior leaders across the business, cascaded to our employees and captured in the firm’s business plans and leadership objectives. We continue to track inclusion through employee surveys. We find a high level of engagement across groups and utilize the results of these surveys to drive our inclusion goals and strategy. In 2021, Invesco continued to conduct pulse surveys to monitor, among other factors, our inclusion efforts and employee engagement. These surveys are evaluated along the lines of gender, race, and their intersection. | |||||||
Count Me In In 2020, Invesco introduced a voluntary self-ID campaign, #CountMeIn, to gather a more complete picture of our workforce demographics. The campaign asked employees to self-identify in terms of gender, sexual orientation, gender identity, race and ethnicity, veteran, neurodiversity and caregiver status. In 2021, we reached our 60% participation benchmark for several key business units, allowing us to begin to report on the data in a meaningful way. Capturing this data will help inform our future DEI activities to improve diversity and support our diverse colleagues. |
2022 Proxy Statement 27 |
Unconscious Bias training for all employees 86%1 completion at December 31, 2021 | Business Resource Groups Eleven active BRGs hosted over 70 BRG events globally | Public Goal To have 35-40% Women in Senior Leadership by 2022. Currently 35%. |
Human Rights Campaign Invesco achieved a score of 100 on the 2020 and 2021 HRC Corporate Equality Index and was named a top employer for LGBTQ+ Inclusion. | Global Data Collection In 2020, Invesco launched its first demographic data capture campaign to collect voluntary data across several dimensions such as race and ethnicity, sexual orientation, gender identity, disability, neurodiversity, caregivers, military service, workplace returners, and first-generation college graduates. | Public Pledges Invesco signed new public pledges in 2020 such as the Corporate Call to Action Coalition for Equity, Confluence Belonging Pledge, and CEO Action for D&I. |
External DEI Partners | ||||||
• Diversity Project UK • NICSA Diversity Project • InterInvest • FordFoundation Coalition for Equity and Opportunity • Confluence Philanthropy | • PFLAG • The Return Hub • The Equity Collective • Investment 20/20 • The Prince’s Responsible Business Network | • CEO Action for Diversity and Inclusion • Atlanta Committee for Progress • Human Rights Campaign |
Race and ethnicity of US colleagues (%)2 | ||||||||||||||||||||||||||
• American Indian | 0.09 | • Hispanic/Latino | 7.20 | • White | 60.46 | |||||||||||||||||||||
• Asian | 15.76 | • Pacific Islander | 0.03 | • Any other ethnicity | 4.01 | |||||||||||||||||||||
• Black
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1. | Percentage is a rolling completion rate that includes new employees who are assigned training. |
2. | All race and |
28 Invesco Ltd.
Compensation committee interlocks and insider participation
During year 2021, the following directors served as members of the compensation committee: C. Robert Henrikson (Chair), Sarah E. Beshar, Thomas M. Finke, Edward P. Garden, William F. Glavin, Jr., Denis Kessler, Sir Nigel Sheinwald, Paula C. Tolliver, G. Richard Wagoner, Jr., Christopher C. Womack and Phoebe A. Wood. No member of the compensation committee was an officer or employee of the company or any of its subsidiaries during 2021, and no member of the compensation committee was formerly an officer of the company or any of its subsidiaries or was a party to any disclosable related person transaction involving the company. During 2021, none of the executive officers of the company has served on the Board of Directors or on the compensation committee of any other entity that has or had executive officers serving as a member of the Board of Directors or compensation committee of the company.
Certain relationships and related transactions
Share repurchases
In order to pay withholding or other similar taxes due in connection with the vesting of equity awards granted under our equity incentive plans, our executive officers are required to “net shares” whereby the company purchases from the participant shares equal in value to an approximation of the tax withholding liability. Under the “net shares” method, the price per share paid by the company for repurchases is the closing price of the company’s common shares on the NYSE on the vesting date. During 2021, the company repurchased common shares from the executive officers for the aggregate consideration shown in the following table.
Name and current title | Number of shares repurchased (#) | Aggregate consideration ($) | ||||||
Kevin M. Carome Senior Managing Director and General Counsel | 27,805 | $623,388 | ||||||
L. Allison Dukes Senior Managing Director and Chief Financial Officer | 24,895 | $696,064 | ||||||
Martin L. Flanagan President and Chief Executive Officer | 125,662 | $2,817,342 | ||||||
Mark Giuliano Senior Managing Director and Chief Administrative Officer | 6,055 | $135,753 | ||||||
Gregory M. McGreevey Senior Managing Director, Investments | 52,491 | $1,176,848 | ||||||
Andrew R. Schlossberg Senior Managing Director and Head of the Americas | 39,226 | $941,865 | ||||||
Doug Sharp Senior Managing Director and Head of EMEA | 15,242 | $362,313 |
Interests in or alongside certain Invesco-sponsored or managed investment products
Some of our employees, including our executive officers, their spouses, related charitable foundations or entities they own or control, are provided the opportunity to invest in or alongside certain Invesco-sponsored private funds that we offer to our clients. Employees who make such investments usually do not pay management or performance fees charged to our clients. Messrs. Flanagan, Carome, Schlossberg, Sharp and Ms. Dukes have made investments in or alongside Invesco-sponsored private and other funds. Other than Mr. Flanagan who received $218,190, there were no distributions exceeding $120,000 from Invesco sponsored private and other funds during the year ended December 31, 2021 made to our executive officers (or persons or entities affiliated with them) consisting of profits and other income.
2022 Proxy Statement 29 |
In the ordinary course of our business, we may conduct transactions or make investments on behalf of funds or client accounts we manage in securities and other financial assets offered or managed by Massachusetts Mutual Life Insurance Company (“MassMutual”) and its subsidiaries. Likewise in the ordinary course of business MassMutual, its subsidiaries and affiliates may invest in funds we manage. The amount of compensation or other value received (or in some cases not charged) by MassMutual or Invesco in connection with those transactions may exceed $120,000 individually or in the aggregate per year. Mr. Glavin is nominated pursuant to the MassMutual Shareholder Agreement and was employed by certain subsidiaries of MassMutual prior to his retirement in 2017.
Further, in the ordinary course of our business, subsidiaries of the company may from time to time (i) invest client assets in companies for which investment funds managed by Trian Fund Management (“Trian”), owner of 9.9% of our common stock, and/or its affiliates may be significant shareholders or (ii) invest client assets in investment funds or other investment vehicles managed by Trian and/or its affiliates. Investment management, performance and other fees paid to Trian, its subsidiaries or affiliates may exceed $120,000 individually or in the aggregate per year.
MassMutual and its subsidiaries
As of February 18, 2022, MassMutual owned approximately 16.6% of our outstanding common stock. MassMutual owns substantially all of the issued and outstanding shares of our preferred stock, the terms of which are set forth in the certificate of designation of the preferred stock, a copy of which is filed as Exhibit 3.1 to our Current Report on Form 8-K filed with the SEC on May 24, 2019.
MassMutual shareholder agreement
In connection with Invesco’s acquisition of OppenheimerFunds, an investment management subsidiary of MassMutual, Invesco entered into the MassMutual Shareholder Agreement, which governs the ongoing relationship between MassMutual and Invesco.
See below for a summary of key provisions of the MassMutual Shareholder Agreement. It does not purport to be complete and is qualified in its entirety by the full text of the MassMutual Shareholder Agreement, a copy of which was filed as Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on May 24, 2019.
Share ownership: Subject to certain exceptions, MassMutual and its controlled affiliates are prohibited from acquiring any additional Invesco capital stock such that if after giving effect to such acquisition, MassMutual together with its controlled affiliates would beneficially own more than 22.5% of the total voting power of Invesco capital stock (which we refer to as the “ownership cap”).
MassMutual is subject to the ownership cap until the date (which we refer to as the “governance termination date”) on which MassMutual and its controlled affiliates cease to beneficially own at least (i) 10% of the issued and outstanding Invesco common shares or (ii) 5% of the issued and outstanding Invesco common shares and $2.0 billion in aggregate liquidation preference of Invesco Series A preferred shares.
Prohibited actions: Until the governance termination date, MassMutual and its controlled affiliates are generally prohibited from soliciting, knowingly encouraging, acting in concert or assisting third parties, negotiating or making any public announcement with respect to:
any acquisition the purpose or result of which would be that MassMutual and its controlled affiliates beneficially own (i) Invesco capital stock in excess of the ownership cap or (ii) any equity securities of any subsidiary of Invesco;
any form of business combination or similar or other extraordinary transaction involving Invesco or any subsidiary of Invesco;
any form of restructuring, recapitalization or similar transaction with respect to Invesco or any subsidiary of Invesco;
agreeing with any third party with respect to the voting of any shares of Invesco capital stock or the capital stock of any subsidiary of Invesco, or otherwise entering into any voting trust or voting agreement with any third party;
selling any share of Invesco capital stock in a tender or exchange offer that either (i) is unanimously opposed by the Invesco Board or (ii) arises out of a breach by MassMutual of its obligations under the MassMutual Shareholder Agreement to not engage in certain prohibited actions;
any proposal to seek representation on the Invesco Board or any proposal to control or influence management, the Invesco Board, Invesco or its subsidiaries (except as expressly permitted by the MassMutual Shareholder Agreement and the certificate of designation for the Series A preferred shares); and
calling any special meeting of shareholders of Invesco or engaging in any written consent of shareholders regarding any of the foregoing.
30 Invesco Ltd. | ||||||
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Additional purchase of voting securities: Until the governance termination date, except in certain cases, if at any time Invesco issues voting securities (or securities convertible into voting securities), MassMutual will have the right to purchase directly from Invesco additional securities of the same class or series being issued up to an amount that would result in MassMutual and its controlled affiliates beneficially owning the lesser of (i) the ownership cap and (ii) the same ownership percentage as they owned immediately prior to such stock issuance.
Share repurchases: If Invesco engages in any share repurchase program or self tender that (i) will, or would reasonably be expected to, cause Invesco capital stock beneficially owned by MassMutual and its controlled affiliates to exceed 24.5% or (ii) would otherwise reasonably be likely to result in a deemed “assignment” of any investment advisory agreement of Invesco or its affiliates under the Investment Advisers Act or Investment Company Act, then Invesco may require, subject to certain exceptions, MassMutual and its controlled affiliates to promptly sell or self-tender such number of shares of Invesco capital stock to Invesco as would be necessary to prevent the occurrence of either of the foregoing events.
Transfer restrictions: In the case of Invesco Series A preferred shares, until the earliest to occur of May 24, 2024, certain credit rating downgrades of Invesco Series A preferred shares or the consummation of a change of control transaction of Invesco (which date we refer to as the “transfer restriction termination date”), MassMutual and its controlled affiliates are generally prohibited from transferring or agreeing to transfer, directly or indirectly, any such preferred stock beneficially owned by them to anyone other than to a controlled affiliate of MassMutual which agrees in writing with Invesco to be bound by the MassMutual Shareholder Agreement or to Invesco directly. In the case of Invesco common shares, until the governance termination date, MassMutual is permitted to transfer its Invesco common shares in certain specified categories of transactions.
Right of first offer: If MassMutual and/or any of its controlled affiliates intend to transfer any Series A preferred shares to a non-affiliate, MassMutual must provide written notice to Invesco. Upon receipt of such notice, Invesco will have the right to purchase all, but not less than all, of the shares proposed to be transferred, at the price and terms described in the notice.
Registration rights: MassMutual has certain customary shelf, demand and “piggyback” registration rights with respect to the Invesco common shares and the Invesco Series A preferred shares.
Board designation: The MassMutual Shareholder Agreement requires Invesco to elect an individual designated by MassMutual to the Invesco Board (whom we refer to as the “MassMutual designee”). The current MassMutual designee serving on the Invesco Board is William F. Glavin Jr. Until the governance termination date, Invesco is required to use reasonable best efforts to cause the election of the MassMutual designee at each meeting of Invesco shareholders. Except in connection with succession planning, until the governance termination date, the size of the Invesco Board of Directors cannot exceed 12 members without the prior approval of the MassMutual designee. The MassMutual designee is entitled to be a member of each standing committee of the Invesco Board or, if not permitted by applicable law, to be an observer on such committee.
Approval rights of MassMutual: Until the governance termination date, Invesco may not generally enter into or effect the following transactions without the prior written approval of MassMutual:
change its capital structure in a manner that would be reasonably likely to result in certain corporate credit rating downgrades;
amend its Memorandum of Association or Bye-Laws such that the rights of MassMutual would be adversely affected compared to those of the holders of Invesco capital stock generally;
adopt a shareholder rights plan;
make (or permit any of its material subsidiaries to make) any voluntary bankruptcy or similar filing or declaration;
subject to certain exceptions, engage in any acquisition, exchange or purchase of equity interests or other similar transaction that involves the issuance of more than 10% of the total voting power of Invesco capital stock;
make any changes in accounting principles that are disproportionately adverse to MassMutual and its affiliates compared to other holders of Invesco capital stock, except to the extent required by changes in GAAP or applicable law;
materially alter Invesco’s principal line of business; or
adopt any director qualifications to be imposed upon the MassMutual designee, other than those required by the Bye-Laws as of October 17, 2018 or those generally applicable to all directors.
Voting agreements: Until the governance termination date, MassMutual and its controlled affiliates are generally required to vote (i) in favor of each matter required to effectuate any provision of the MassMutual Shareholder Agreement and against any matter the approval of which would be inconsistent with any provision of the MassMutual Shareholder Agreement, and (ii) to the extent consistent with the preceding clause (i), in accordance with the recommendation of the Invesco Board on all matters approved by the Invesco Board relating to (a) the elections of directors, (b) matters that have been approved or recommended by the compensation committee of the Invesco Board,
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(c) any change of control transaction of Invesco that the Invesco Board has unanimously recommended in favor of or against, and (d) any transaction that arises out of a breach by MassMutual of its obligations under the MassMutual Shareholder Agreement to not engage in certain prohibited actions. Additionally, if MassMutual and its controlled affiliates beneficially own at least 20% of the issued and outstanding Invesco common shares as of the record date for a vote on any matter, they must, subject to some exceptions, vote on such matter as recommended by the Invesco Board to the extent that such matter does not conflict with any provision of the MassMutual Shareholder Agreement.
Termination of the MassMutual shareholder agreement: The MassMutual Shareholder Agreement will terminate upon the later to occur of the governance termination date and the transfer restriction termination date, although certain provisions of the MassMutual Shareholder Agreement may survive for a certain period of time beyond the termination of the MassMutual Shareholder Agreement.
32 Invesco Ltd. | ||
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Delinquent Section 16(a) Reports
Sections 16(a) of the Exchange Act requires certain officers, directors and persons who beneficially own more than 10% of the company’s common shares to file reports of ownership and reports of changes in ownership with the SEC. The reporting officers, directors and 10% shareholders are also required by SEC rules to furnish the company with copies of all Section 16(a) reports they file. Based solely on its review of copies of such reports, the company believes that all Section 16(a) filing requirements applicable to its directors, reporting officers and 10% shareholders were complied with during 2021 with the exception of one late Form 4 filing on behalf of Massachusetts Mutual Life Insurance Company for one purchase of 7,582 common shares of the company on November 1, 2021, which was reported on a subsequent Form 4 filed on March 8, 2022.
Security ownership of principal shareholders
The following table sets forth the common shares beneficially owned as of February 18, 2022 by each shareholder known to us to beneficially own more than five percent of the company’s outstanding common shares. The percentage of ownership indicated in the following table is based on 454,831,764 common shares outstanding as of February 18, 2022.
1. | Except as described otherwise in the footnotes to this table, each beneficial owner in the table has sole voting and investment power with regard to the shares beneficially owned by such owner. |
2. | On November 16, 2020, Massachusetts Mutual Life Insurance Company, on behalf of itself and certain of its affiliates (collectively “MassMutual”), filed a Schedule 13D/A with the SEC indicating that MassMutual had sole voting power with respect to 75,643,326 common shares of Invesco and sole dispositive power with respect to 75,665,666 common share of Invesco. |
3. | On February 10, 2022, The Vanguard Group, on behalf of itself and certain of its affiliates (collectively, “Vanguard”) filed a Schedule 13G/A with the SEC indicating that Vanguard had shared voting power with respect to 509,354 common shares, sole dispositive power with respect to 44,975,340 common shares and shared dispositive power with respect to 1,163,037 common shares, of Invesco. |
4. | This information is based on a Schedule 13D/A filed on February 1, 2022 (the “Schedule 13D/A”) by Trian Fund Management, L.P. (“Trian”) and certain of its affiliates. Trian may be deemed to have shared voting power and shared dispositive power with regard to all of the foregoing shares. |
5. | On February 1, 2022, BlackRock, Inc., on behalf of itself and certain of its affiliates (collectively, “BlackRock”) filed a Schedule 13G/A with the SEC indicating that BlackRock had sole voting power with respect to 31,269,744 common shares of Invesco and sole dispositive power with respect to 35,682,983 common shares of Invesco. |
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2022 Proxy Statement 33 |
Security ownership of management
The following table lists the common shares beneficially owned as of February 18, 2022 by (i) each director; (ii) each executive officer named in the Summary Compensation Table below and (iii) all directors and executive officers as a group. The percentage of ownership indicated below is based on 454,831,764 of the company’s common shares outstanding on February 18, 2022.
Beneficial ownership reported in the below table has been determined according to SEC regulations and includes common shares that may be acquired within 60 days after February 18, 2022, but excludes deferred shares which are disclosed in a separate column. Unless otherwise indicated, all directors and executive officers have sole voting and investment power with respect to the shares shown. No shares are pledged as security. As of February 18, 2022, no individual director or named executive officer owned beneficially 1% or more of our common shares other than Mr. Flanagan, who owns 1.1% of our outstanding common shares. Our directors and executive officers as a group owned approximately 1.9% of our outstanding common shares.
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Name | Common shares beneficially owned | Deferred share awards | Total | |||||||||
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Sarah E. Beshar | 58,602 | — | 58,602 | |||||||||
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Thomas M. Finke | 7,693 | — | 7,693 | |||||||||
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Martin L. Flanagan1 | 4,547,461 | 640,997 | 5,188,458 | |||||||||
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William F. Glavin, Jr. | 24,539 | — | 24,539 | |||||||||
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C. Robert Henrikson | 70,334 | — | 70,334 | |||||||||
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Denis Kessler | 74,822 | 7,118 | 81,940 | |||||||||
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Sir Nigel Sheinwald | 45,423 | — | 45,423 | |||||||||
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Paula C. Tolliver | 9,522 | — | 9,522 | |||||||||
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G. Robert Wagoner, Jr.2 | 66,325 | — | 66,325 | |||||||||
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Christopher C. Womack | 3,372 | — | 3,372 | |||||||||
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Phoebe A. Wood | 53,566 | — | 53,566 | |||||||||
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L. Allison Dukes | 231,099 | 48,171 | 279,270 | |||||||||
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Andrew T.S. Lo | 225,605 | 425,862 | 651,467 | |||||||||
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Gregory G. McGreevey | 381,941 | 276,869 | 658,810 | |||||||||
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Andrew R. Schlossberg | 248,579 | 324,280 | 572,859 | |||||||||
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All Directors, Director Nominee and Executive Officers as a Group (19 persons) | 6,750,382 | 2,087,252 | 8,837,634 | |||||||||
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Fees earned or paid in cash ($)1 | Share awards ($)2 | Total ($) | |||||||||
Sarah E. Beshar | 120,000 | 144,974 | 264,974 | |||||||||
Joseph R. Canion | 135,000 | 144,974 | 279,974 | |||||||||
William F. Glavin, Jr.3 | 42,174 | 50,171 | 92,345 | |||||||||
C. Robert Henrikson | 135,000 | 144,974 | 279,974 | |||||||||
Denis Kessler | 120,000 | 144,974 | 264,974 | |||||||||
Sir Nigel Sheinwald | 120,000 | 144,974 | 264,974 | |||||||||
G. Richard Wagoner, Jr. | 228,7694 | 144,974 | 373,743 | |||||||||
Phoebe A. Wood | 170,000 | 144,974 | 314,974 | |||||||||
Retired Director | ||||||||||||
Ben F. Johnson, III | 244,615 | 88,646 | 333,261 |
1 Includes the annual basic cash fee and, as applicable, Chair of the Board fee and committee Chair fees.
2 Reflects the grant date fair value for each share award. Share awards are 100% vested as of the date of grant.
3 Mr. Glavin became a director in May 2019.
4 Mr. Wagoner became chair of the board in May 2019.
The following table presents the grant date fair value for each share award made to eachnon-executive director during 2019.
2019 Director grant date fair value
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Name | Date of grant 1/31/19 ($) | Date of grant 4/26/19 ($) | Date of grant 7/26/19 ($) | Date of grant 10/25/19 ($) | Total grant date fair value ($) | |||||||||||||||
Sarah E. Beshar | 36,240 | 36,247 | 36,239 | 36,248 | 144,974 | |||||||||||||||
Joseph R. Canion | 36,240 | 36,247 | 36,239 | 36,248 | 144,974 | |||||||||||||||
William F. Glavin, Jr.1 | – | – | 13,923 | 36,248 | 50,171 | |||||||||||||||
C. Robert Henrikson | 36,240 | 36,247 | 36,239 | 36,248 | 144,974 | |||||||||||||||
Denis Kessler | 36,240 | 36,247 | 36,239 | 36,248 | 144,974 | |||||||||||||||
Sir Nigel Sheinwald | 36,240 | 36,247 | 36,239 | 36,248 | 144,974 | |||||||||||||||
G. Richard Wagoner, Jr. | 36,240 | 36,247 | 36,239 | 36,248 | 144,974 | |||||||||||||||
Phoebe A. Wood | 36,240 | 36,247 | 36,239 | 36,248 | 144,974 | |||||||||||||||
Retired Director | ||||||||||||||||||||
Ben F. Johnson III | 36,240 | 36,247 | 16,159 | – | 88,646 |
1 Mr. Glavin became a director in May 2019.
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In addition to Martin L. Flanagan, whose information is set forth
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2022 Proxy Statement 35 |
Jennifer Krevitt Senior Managing Director and Chief Human Resources Officer Age Tenure 58 <1 Year | Jennifer Krevitt Jennifer Krevitt has served as Senior Managing Director and Chief Human Resources Officer since January 2022. In this role, she works collaboratively with senior leadership and others to lead HR activities for Invesco employees worldwide. Prior to joining the firm, she was a managing director, global head of Human Capital Management (HCM) for the Asset Management Division and head of Global Ventures at Goldman Sachs. During her nearly 25-year tenure at Goldman Sachs, she served in several other leadership roles within HCM, including global head of Legal, Compliance and Internal Audit and chief administrative officer. Before Goldman Sachs, Ms. Krevitt was general counsel and head of Human Resources at CRC, Inc. She has been in the industry since 1995. Ms. Krevitt is Chair of the Trustee’s Council of Penn Women, a member of the Dean’s Council for Penn Law Women and the Penn Law Alumni Society Board of Managers. Additionally, she is on the board of the non-profit organization the Women’s Rights Information Center and serves on the Executive Committee of The Pipeline Crisis. Ms. Krevitt earned a BA degree in economics from the University of Pennsylvania and a JD from the University of Pennsylvania Carey Law School. | |
Andrew T.S. Lo Senior Managing Director and Head of Asia Pacific Age Tenure 60 28 Years | Andrew T.S. Lo Andrew T. S. Lo has served as head of Invesco Asia Pacific since 2001. He joined our company as managing director for Invesco Asia in 1994. Mr. Lo began his career as a credit analyst at Chase Manhattan Bank in 1984. He became vice president of the investment management group at Citicorp in 1988 and was managing director of Capital House Asia from 1990 to 1994. Mr. Lo was Chair of the Hong Kong Investment Funds Association from 1996 to 1997 and a member of the Council to the Stock Exchange of Hong Kong and the Advisory Committee to the Securities and Futures Commission in Hong Kong from 1997 to 2001. He earned a B.S. and an MBA from Babson College in Wellesley, Massachusetts. | |
Gregory G. McGreevey Senior Managing Director,
Age Tenure
59 11 Years |
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Gregory G. McGreevey
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36 Invesco Ltd. |
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Senior Managing Director and Head of
Age Tenure
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Andrew R. Schlossberg Andrew Schlossberg has served as senior managing director and head of the Americas since | ||
Douglas J. Sharp Senior Managing Director and Head of
Age Tenure
47 14 Years | ||
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Douglas Sharp has served as senior managing director and head of EMEA since |
2022 Proxy Statement 37 |
| Advisory vote to approve the company’s executive compensation
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We are asking our shareholders to vote “FOR” the following resolution at the Annual General Meeting: | ||||||||
“RESOLVED, that the company’s shareholders approve, on an advisory (nonbinding) basis, the compensation of the named executive officers, as disclosed in the company’s Proxy Statement for the 2022 Annual General Meeting of Shareholders pursuant to the Securities and Exchange Commission’s compensation disclosure rules, including the Compensation Discussion and Analysis, the compensation tables and related narrative discussion.” | ||||||||
Invesco’s compensation programs, particularly our annual incentive pools, are tied to the achievement of our multi-year strategic objectives and financial results and our success in serving our clients’ and shareholders’ interests, as further described in Executive Compensation. In considering their vote, we urge shareholders to review the information included in this proxy statement in Executive Compensation. To the extent there is any significant vote against the named executive officer compensation as disclosed in this proxy statement, we will consider our shareholders’ concerns, and the compensation committee will evaluate whether any actions are necessary to address those concerns. Under the Board’s current policy, shareholders are given an opportunity to cast an advisory vote on this topic annually. | ||||||||
FOR | Recommendation of the Board The Board of Directors unanimously recommends a vote “FOR” the approval of the compensation of our named executive officers, as disclosed in this proxy statement pursuant to the compensation disclosure rules of the SEC. | |||||||
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Compensation discussion and analysis
Invesco’s executive compensation program is designed to align executive compensation with the long-term interests of our shareholders. This Compensation Discussion and Analysis (“CD&A”) provides shareholders with information about our business, 2021 performance, our disciplined approach to compensation and 2021 compensation decisions for our Named Executive Officers (“NEOs”) listed below. We refer to certain non-GAAP measures throughout this section that are used in compensation decisions. Please refer to Appendix A of this Proxy Statement for information regarding these measures.
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Martin L. Flanagan | L. Allison Dukes Senior Managing Director and Chief Financial Officer (“CFO”) | Andrew T.S. Lo | ||||||
Senior Managing Director and of Asia Pacific | Gregory G. McGreevey Senior Managing Director, Investments | Andrew R. Schlossberg Senior Managing Director | ||||||
and Head of | ||||||||
President and Chief Executive Officer (“CEO”) |
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2022 Proxy Statement 39 |
Pay for 2021 is aligned with our strong financial performance and organizational strength – we exceeded our targets on our company scorecard which informed executive compensation. In 2021, the company experienced some of its strongest financial performance in its history as we focused on our clients and employees in a continuing COVID operating environment.
Invesco shareholder value framework
2021 Financial performance1
Long-term net flows $81.4B 7% organic growth rate
| Net revenue2 $5,261M +17% | Adjusted operating income2 $2,183M +31% | Adjusted operating margin2 41.5% +450 basis points | Adjusted diluted EPS2 $3.09 +60% |
• | Invesco achieved a 7% organic growth rate for 2021 – the strongest organic growth in our history and one of the best growth rates in the industry for 2021. |
• | We generated over $81 billion of net long-term inflows, resulting in over $1.6 trillion in assets under management at the end of 2021. |
• | Net revenues grew 17% in 2021, helping us achieve adjusted operating income of nearly $2.2 billion, 31% higher than the previous year. Revenue growth, coupled with strong expense discipline, led to a 450 basis point increase in our adjusted operating margin to 41.5%. These factors contributed to a 60% increase in our full-year adjusted diluted EPS to $3.09. |
Total CEO incentive pay is 118% of target | 95% of CEO’s 2021 pay is variable | 60% of CEO’s 2021 equity is performance-based |
Invesco’s responsiveness in 2021 | Progress on corporate strategy | |||||
• Continued to prioritize the health and safety of our employees through the ongoing COVID-19 pandemic • Continued in a work from home environment while preparing for a “new normal” model that encourages colleagues being together both virtually and in person • Continued to ramp up contact with our clients through both in person and virtual engagement, which further strengthened our relationships and our business • Continued to amplify our focus on Corporate and Social Responsibility as well as ESG efforts, with diversity, climate and financial education initiatives | • A high level of engagement with clients and robust performance in capabilities aligned with market demand contributed to positive results for the year • Continued to offer our clients diverse solutions to ensure they can remain financially resilient • Further strengthened our balance sheet and financial flexibility; we exceeded the $150 million cost savings target we set for 2021 as part of our strategic evaluation • Added depth, experience and further diversity (gender and racial) to our Board • Continued to strengthen our DEI efforts, adding two new BRGs, with increased engagement across all diversity groups and at senior levels | |||||
Company scorecard links performance to pay | We have sound compensation practices | |||||
• Further refined our company scorecard by focusing on the most relevant metrics and providing more transparency on the financial goals and actual scorecard results • Based on feedback, our 2021 company scorecard reflects fewer and more focused measures as well as results for each of the performance measures | • Pay practices align with shareholder interests • 95% of our CEO pay is variable and 89 - 94% of our other NEO pay is variable • Increased vesting rigor for performance-based awards • Throughout the year, our compensation committee assessed performance against our goals and peer performance | |||||
1. | Comparisons are year-over-year. |
2. | Adjusted financial measures are all non-GAAP financial measures. See the information in Appendix A regarding non-GAAP financial measures. |
40 Invesco Ltd. |
How we supported our employees
• | Our top priority in 2020 was the health and wellbeing of our employees. |
• | As the pandemic continued, our priority in 2021 likewise continued to be the health and well being of our employees and to prepare the organization for what the “new normal” would be at the firm. |
• | The first quarter of the year, prior to authorization of vaccinations, our employees primarily continued to work remotely. As vaccinations became widely available, we encouraged our employees who were able, to begin the vaccination process. In some countries, due to supply, vaccinations took quite some time. |
• | In preparation for more individuals being vaccinated in the second half of the year, the global Return to Office task force, supported by senior leadership, rolled out the global return to office hybrid work model. |
• | The hybrid work model was ready to be implemented by the end of third quarter; however, due to the delta and omicron variants, the model has not yet been fully implemented across the globe. When it is safe for workers to return to the office, the model and framework is now in place to accommodate our hybrid workforce. |
• | Leadership continued on-going communications with staff members through various channels, including regular pulse surveys, townhalls and videos. Educational events were sponsored by various BRGs and a virtual speaker series began and will continue in 2022 on what we expect the new normal work environment will entail. |
Summary of enhancements to our executive compensation program
During the course of 2020 and 2021, we made significant enhancements to our executive compensation program. We believe that these enhancements demonstrate that our executive compensation program clearly links pay to company and executive performance. As reported in the supplemental proxy material that we filed in May 2021, we made the following additional enhancements in 2021:
Increased company scorecard transparency. We reduced the number of performance categories and increased the weighting for financial performance. The company scorecard discloses the target set for each measure, end of year result for each measure and the average percent achieved for each category. We continue to include category assessments and overall weighted assessment. | ||
Performance-based equity award vesting matrix. Beginning with awards granted in 2021, we updated the vesting matrix to require relative Total Shareholder Return (“TSR”) to equal the 55% percentile to achieve 100% vesting (assuming absolute 3-year Average AOM is 37.5%). Vesting continues to range from 0% to 150%; provided, however, if the company’s 3-year absolute TSR is negative, vesting will be capped at 100%. We believe that the linked vesting performance thresholds provide significant rigor to our incentive program, as payouts are not a range of outcomes but represent specific performance levels. |
In addition to the 2021 enhancements, we continue the below-described features of our executive compensation program.
• | 4-step process to determine executive pay. We continue to use our 4-step process that aligns pay with performance. Our 4-step process relies on assessing company performance based on our company scorecard and individual executive performance. See pages 57 - 58 for more information about our 4-step process. |
• | CEO pay calculation graphic. We continue to use a graphic that illustrates how CEO pay was determined. We believe the graphic clearly communicates how the committee determined CEO pay. It includes a step-by-step description that follows the quantitative assessment of company performance using the company scorecard and a qualitative assessment of CEO achievements. |
• | CEO compensation cap. CEO cash bonus is capped at the lesser of $10 million or 30% of the CEO’s incentive pay. |
• | Performance-based equity awards. 60% of equity awards are performance-based. |
• | Updated peer groups. In 2021, we implemented a new compensation peer group as well as a new peer group for our performance-based equity awards. These peer groups emphasize pure asset management firms with significant business overlap and similar scale. See page 62 for a discussion about our peer groups. |
Invesco shareholder value framework
Invesco is committed to serving our clients and delivering long-term shareholder value. Our executives are able to directly influence key business drivers that create long-term shareholder value. Invesco’s framework for long-term shareholder value creation is based primarily on:
Our focus on delivering the outcomes our clients seek enables us to grow our business by attracting and retaining new assets under management (“AUM”) | ||
growth. Our strong global operating platform allows us to operate effectively and efficiently and is an important driver of ouroperating leveragethat benefits clients and shareholders. | ||
We strive to maintain our financial strength through disciplinedcapitalmanagementand return capital to shareholders on a consistent and predictable basis. | ||
Our focus on driving greater efficiency and effectiveness, combined with our work to build a global business with a comprehensive range of |
Invesco’s commitment to delivering shareholder value is aligned with the purpose-driven way we manage our business. To meet the needs of our clients, we focus on:
delivering strong, long-term investment performance; and
providing a comprehensive range of investment capabilities and technology solutions seeking to ensure deep and stable investment teams.
Investing for the long-term is an important element of our strategy. Our diversified investment capabilities in terms of investment objectives, styles, client types, and geographies enable us to meet client needs through differing market cycles across the globe. We also strive to give clients greater value for their money, which means competitively priced products, as well as investor education, thought leadership, digital platforms and other value adds that create an enhanced client experience.
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In 2021, we contacted or engaged with our top shareholders, representing 63% of our outstanding shares |
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The Annual General Meeting of Shareholders provides our shareholders with the opportunity to: | ||
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favor in 2020). Invesco’s Board |
42 Invesco Ltd. |
In 2021, we contacted or engaged with shareholders representing 63% of our common stock — MassMutual, our largest shareholder, which holds 16% of our common stock; Trian, owner of 9.9% of our common stock; and 30 other shareholders representing 39% of our outstanding shares of common stock.1 MassMutual and Trian were both represented on our Board and its Compensation Committee in 2021 and provided feedback in those forums. The other 39% of our shareholders were contacted as part of our Fall outreach campaign that included invitations to shareholders owning 0.5% or more of our common stock and courtesy invitations to certain other shareholders and the major proxy advisory firms to discuss our executive compensation program, governance matters, sustainability topics and our ESPP proposal.
We held meetings with all shareholders who accepted our invitation – eight of our shareholders representing 12% of our outstanding shares1, including shareholders who voted against our Say-on-Pay proposal in 2021. We also met with two major proxy advisory firms. Our Board chair and compensation committee chair attended the proxy advisory meetings to provide the Board’s perspective and gain insights. During each of the meetings, we asked specific questions about the design of our current executive compensation program and upcoming ESPP proposal and gave our meeting attendees the opportunity to provide feedback. Both the participating directors and management provided feedback to the committee based on these meetings.
The table below shows key topics or themes that were raised during our recent outreach and actions taken or proposed to be taken in response. The committee, in conjunction with its independent consultant and senior management, integrated aspects of the feedback into our compensation program.
Highlights of 2020 - 2021 outreach feedback and actions | ||
Topics and themes raised | Invesco’s response | |
Company scorecard • We would like to see fewer measures and greater transparency into set targets and targets achieved | • We have enhanced our company scorecard to include goal set, end of year result and percent achieved for each measure. In addition, we reduced the number of scorecard measures and updated the category weightings to increase the impact of financial factors • We continue to include category assessments and overall weighted assessment | |
Performance-based equity awards • We believe that more than 50% of equity awards should be performance-based | • Beginning with awards granted in 2021, we updated the vesting matrix for performance-based equity awards to be more closely tied to the firm’s operating plan and thereby increasing the vesting rigor • Included a negative TSR vesting cap • Equity awards continue to be 60% performance-based with claw-back provisions | |
ESPP share replenishment + minor administrative changes • Provide proxy disclosure for historic plan share usage and reasons for administrative changes • Replenishment should target 3-5 years rather than 10 | • Proxy disclosure includes historic plan share usage • Administrative changes reflect our desire to increase employee participation and incorporate employee feedback, particularly with respect to shorter offering periods • Replenishment request estimated to be for five years |
1. As of October 1, 2021
2022 Proxy Statement 43 |
Board involvement In 2021, our Board chair and compensation committee chair participated in certain outreach meetings to provide the Board’s perspective and gain insights. Both the participating directors and management provided feedback to our compensation committee based on such meetings. | ||
Evolution of our executive compensation program The below timeline demonstrates Invesco’s continued responsiveness to shareholder feedback and the progression of our compensation program over the past several years. |
44 Invesco Ltd. |
Our compensation framework |
We achieve alignment | How we align performance and pay | |
of performance and pay by measuring company performance and individual achievements | Executive pay outcomes are aligned to both our company performance and individual achievements. At the beginning of the year, the committee approves the CEO objectives, the company scorecard and its weightings that measure the following key drivers of shareholder value creation: |
our financial performance | 66.7% | |||||
sustaining a high performing organization, since our people are the source of everything we do | 33.3% | |||||
Following completion of the year, the committee assesses company performance based on the company scorecard and individual achievements to determine each NEO’s annual and long-term incentives. |
2022 Proxy Statement 45 |
For all NEOs, at least 60%of their total incentive award is delivered through deferred equity. All incentives are paid from a company-wide incentive pool. | The committee’s well-defined process for making pay decisions The pay determination process reinforces our shareholder value framework. The committee’s 4-step process determines each NEO’s total incentive outcome, which includes all variable pay (annual cash award + time-based equity award + performance- based equity award). Based on quantitative and qualitative performance assessment, total incentive awards can range from 0% to 130% of each NEO’s incentive target. Once the total incentive award is determined, the pay mix between cash and equity is more heavily weighted to equity awards. See page 50 for the overall pay mix for the NEOs. See pages 57 through 58 for a detailed description regarding these steps | |
The table below shows NEO incentive targets for 2021.
2021 NEO incentive targets | ||||
2021 Incentive target | ||||
Name | (in millions)1 | |||
Martin L. Flanagan | $13.50 | |||
L. Allison Dukes | $3.40 | |||
Andrew T.S. Lo | $4.29 | |||
Gregory M. McGreevey | $5.80 | |||
Andrew R. Schlossberg | $4.55 | |||
1. Incentive compensation includes cash bonus, time-based equity and performance-based equity.
46 Invesco Ltd. |
In 2021, we generated over $81 billion of net long-term inflows, representing a 7% organic growth rate – the strongest organic growth in our history and one of the best growth rates in the industry. The foregoing resulted in us achieving over $1.6 trillion in assets under management at the end of 2021. Net revenues grew 17% in 2021, helping us achieve adjusted operating income of nearly $2.2 billion, 31% higher than the previous year. Revenue growth, coupled with strong expense discipline, led to a 450 basis point increase in our adjusted operating margin to 41.5%. These factors contributed to a 60% increase in our full-year adjusted diluted EPS to $3.09. The strength of our business in 2021 generated strong cash flows which improved our cash position. We remained focused on continuing to build a stronger balance sheet and improving our financial flexibility for the future.
Below are performance highlights for 2021 compared to the prior year. Many of these metrics are included in our company scorecard that we use to determine 2021 executive pay.
1. | The adjusted financial measures are all non-GAAP financial measures. See the |
2022 Proxy Statement 47 |
Company scorecard results for 2021 – aligning pay with results
The committee believes the scorecard is a good indicator of the overall health of the firm. In early 2022, using the company scorecard, the committee conducted its final quantitative assessment of company performance for 2021.
As discussed in the 2021 supplemental proxy materials, the firm has reduced the number of company scorecard metrics and now has two main catergories of measurement — Financial Performance (66.7% weight of overall outcome, with each financial metric equally weighted) and Organizational Health (33.3% weight of overall outcome). The committee has established a range (minimum to maximum) of anticipated outcomes around each target where the potential outcome of the scorecard will be between 0% to 130%. For 2021, the Financial Performance, the firm met or exceeded the maximum outcome of each measure and financial performance was rated at 130% and for Organizational Health, the overall outcome was 100%. This produced an overall company performance of 120%.
Financial performance | ||||||||||||||
Measure | | 2021 Target |
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| Score for achieving at or above the max of target |
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Long-term net flows ($B) | $21.6 | $81.4 | 130% | |||||||||||
Net revenue ($M) | $4,853 | $5,261 | 130% | |||||||||||
Adjusted operating income ($M) | $1,850 | $2,183 | 130% | |||||||||||
Adjusted operating margin | 38.1% | 41.5% | 130% | |||||||||||
Adjusted earnings per share (diluted EPS) | $2.34 | $3.09 | 130% | |||||||||||
Financial outcome score |
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Organizational health |
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Measures | Year-end results | |||||||||||||
Deliver sustainable investment | ||||||||||||||
• Increase share of actively managed assets in the top quartile of peer group over 3-year performance period |
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• 60%+ of actively managed assets in top half of peer group over 3- and 5- year |
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Talent development | ||||||||||||||
• Develop a more diverse and inclusive culture (e.g., expanding female senior manager representation 35% - 40%+ by 2022) |
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• Foster culture of inclusion beyond gender (e.g., race, ethnicity, religion, sexual orientation, etc.) |
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• Attract and retain high performing talent and succession planning (e.g., investors, staff/technology, etc.) |
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Execute enterprise wide strategic objectives |
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• Expand ESG integration (e.g., 50%+ of total AUM by the end of 2021), while elevating the firm’s ESG reputation |
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• Continue buildout of Investment Solutions and Digital capabilities
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Organizational health score |
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2021 NEO total annual compensation summary – aligning pay to results
The CEO’s 2021 compensation is aligned with our strong financial performance and organizational strength – Invesco exceeded its targets on our company scorecard (as shown on pg 48) and achieved growth in our key capability areas as we continued our strategic investments in areas where we see client demand and have a competitive strength (as discussed on pages 1 and 2 of the proxy).
Pages 51 and 52 under the heading 2021 Key achievements further describe Mr. Flanagan’s achievements of this past year, as well as the outcomes of several metrics included in the company scorecard.
CEO pay determination
Based on company performance, the below table shows how the committee calculated Mr. Flanagan’s pay for 2021. The committee’s process for determining executive officer pay is applied to all incentive compensation (consisting of cash bonus + time-based equity + performance-based equity).
Step 1 – Quantitative assessment of company performance | ||||||||
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Quantitative score from scorecard | 120% | |||||||
2021 incentive target, as adjusted | $16.2M | |||||||
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Committee applied rounding to arrive at total incentive | $16.0M | |||||||||
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Percent of incentive | 118% | |||||||||
NEO pay determinations. The NEOs compensation is based on the overall outcome of the financial performance and organizational strengths found in the scorecard, as well as success in their individual performance and achievement of goals.
The table below shows compensation decisions for each of the NEOs for 2021.
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2021 NEO total compensation |
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Name | | Base salary ($) |
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Martin L. Flanagan | 790,000 | 4,800,000 | 4,500,000 | 6,700,000 | 16,790,000 | 51.3% | ||||||||||||||||||
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L. Allison Dukes | 500,000 | 1,500,000 | 1,050,000 | 1,600,000 | 4,650,000 | 45.3%2 | ||||||||||||||||||
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Andrew T.S. Lo | 461,513 | 2,100,000 | 1,400,000 | 2,100,000 | 6,061,513 | 26.2% | ||||||||||||||||||
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Gregory M. McGreevey | 450,000 | 2,800,000 | 1,700,000 | 2,550,000 | 7,500,000 | 36.6% | ||||||||||||||||||
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Andrew R. Schlossberg | 450,000 | 2,100,000 | 1,375,000 | 2,075,000 | 6,000,000 | 32.0% | ||||||||||||||||||
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1. Represents 60% of the combined value of time-based and performance based equity awards.
2. Ms. Dukes was appointed Senior Managing Director and Chief Financial Officer effective August 1, 2020.
The committee uses a range of34-48% of PCBOI, in the aggregate, in setting the company-wide incentive pool. The range includes the cash bonus, deferred and equity compensation pools, as well as the amounts paid under sales commission plans (in which our NEOs do not participate). The range was determined based on historical data concerning the practices of asset management and other similar financial services firms as analyzed by Johnson Associates, our independent compensation consultant, and based on data obtained from the McLagan and CaseyQuirk Performance Intelligence Study.
Linking the aggregate incentive compensation pool to a defined range of our PCBOI ensures incentive compensation is affordable.
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2019 NEO total compensation | ||||||||||||||||||||||||||||
Name | Base salary ($) | Cash bonus ($) | Stock deferral ($) | Long-term equity ($) | Total compensation ($) | YOY % change | Performance- based ($)1 | |||||||||||||||||||||
Martin L. Flanagan | 790,000 | 3,704,000 | 1,515,280 | 6,240,720 | 12,250,000 | 10.2% | 3,878,000 | |||||||||||||||||||||
Loren M. Starr | 450,000 | 912,000 | 397,000 | 1,641,000 | 3,400,000 | – | 1,019,000 | |||||||||||||||||||||
Andrew T. S. Lo | 458,070 | 1,400,000 | 541,930 | 2,400,000 | 4,800,000 | 6.1% | 1,470,965 | |||||||||||||||||||||
| Gregory G. McGreevey | 450,000 | 2,100,000 | 1,100,000 | 2,400,000 | 6,050,000 | 21.0% | 1,750,000 | ||||||||||||||||||||
Andrew R. Schlossberg | 450,000 | 1,820,000 | 1,365,000 | 1,365,000 | 5,000,000 | 22.1% | 1,365,000 | |||||||||||||||||||||
1 Represents fifty percent of the combined value of the annual stock deferral and long-term equity awards
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Name | 2019 (in millions $) | Company performance | 2019 Final incentive compensation (in | Outcome (% of target) | ||||||||||||||||||||||||
Martin L. Flanagan | 13.50 | Targets achieved | 11.46 | 84.9 | ||||||||||||||||||||||||
Loren M. Starr | 3.15 | Targets achieved | 2.95 | 93.7 | ||||||||||||||||||||||||
Andrew T. S. Lo | 4.14 | Targets achieved | 4.34 | 104.8 | ||||||||||||||||||||||||
Gregory G. McGreevey2 | 5.80 | Targets achieved | 5.60 | 96.6 | ||||||||||||||||||||||||
Andrew R. Schlossberg2 | 4.55 | Targets achieved | 4.55 | 100.0 | ||||||||||||||||||||||||
1 Incentive compensation includes bonus + short-term deferral + long-term equity. 2 Incentive target for 2019 was increased to reflect increased responsibilities and/or role.
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Martin L. Flanagan President and CEO |
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2021 Compensation (in 000s) | Responsibilities Mr. Flanagan is President and CEO. He develops, guides and oversees execution of Invesco’s long-term strategic priorities to deliver value for clients and shareholders over the long-term. Mr. Flanagan is responsible for senior leadership development and succession planning, defining and reinforcing Invesco’s purpose and engaging with key clients, industry leaders, regulators and policy makers. | ||||||||||
Base salary | $790 | ||||||||||
Annual incentive award - Cash | $4,800 | ||||||||||
Time-based equity | $4,500 | ||||||||||
Performanced-based equity | $6,700 | ||||||||||
Total annual compensation | $16,790 | ||||||||||
Total incentive compensation | $16,000 | ||||||||||
2021 incentive target | $13,500 | ||||||||||
Total incentive compensation as a % of 2021 incentive target | 118% |
For 2019,2021, the committee decided that Mr. Flanagan’s total incentive compensation should be $11.46$16 million, which is 84.9%118% of his 20192021 incentive target of $13.5 million. Mr. Flanagan’s total 2019 compensation is up 10.2% from 2018. However, for both 2018 and 2019, Mr. Flanagan’s total compensation is down 20.1% and 11% from 2017, respectively. As noted above, the company’s process for determining executive officer pay is applied to all incentive compensation (consisting of cash bonus + annual stock deferraltime-based equity + long- termperformance-based equity).
2019 Key achievements
– Mr. Flanagan led the integration of MassMutual’s asset management affiliate, OppenheimerFunds, which closed in the second quarter of 2019. The combination deepened our relationship with clients in the US, expanded the capabilities we can offer globally and further scaled our business for the benefit of clients and shareholders. The combination also strengthened the firm’s operating results, with operating revenues growing 15.1% year-over-year and assets under management increasing to $1.2 trillion (as at December 31, 2019). Additionally, the firm achieved significant net expense synergies of $501 million on an annualized basis and returned $1.2 billion to shareholders in 2019. In recognition of the acquisition’s positive and significant impact on the industry, Invesco won the Deal of the Year honor at the 26th annual Mutual Fund Industry Awards.
– Under Mr. Flanagan’s leadership, the firm continued to make good progress in China in 2019, building on our30-year legacy in this important, growing market. Invesco was ranked #2 among top foreign firms in China byZ-Ben Advisors in its 2019 China Ranking Report. Greater China, at $73 billion in assets under management and $8 billion in net flows for 2019, is one of Invesco’s fastest- growing businesses (Invesco data as at December 31, 2019).
– The firm further strengthened our market-leading solutions capability in 2019, leveraging one of the industry’s strongest, most experienced solutions teams to deliver customized outcomes for clients.
– Invesco QQQ also celebrated 20 years of curating innovation in 2019. Since its inception in 1999, Invesco QQQ has grown to become one of the largest, most-traded and highest-performing ETFs in the history of the industry.
– Mr. Flanagan also oversaw the launch of several innovative funds during the year, including a blockchain ETF on the London Stock Exchange and Gilt ETFs, which gives investors access to UK government bonds across the full maturity spectrum.
– Invesco won multiple awards recognizing its investment leadership during the year. Our High Yield Equity Dividend fund was named one of the top 5 dividend funds in the US for the past five years by Barron’s, and our Active Multi-Sector Credit Fund and Europlus Fund won the Lipper Fund Awards in Europe from Revinitv.
2021 Key achievements1 • Led the firm’s efforts to maintain robust investment performance in a dynamic market environment, which helped drive strong results for the business and shareholders. Under Mr. Flanagan’s guidance, the firm achieved record high assets under management of $1.6 trillion (up 19.3% for the year), $81.4 billion in long-term net inflows (representing a 7% organic growth rate for the year) and a 450 basis points increase in our adjusted operating margin to 41.5%. • Oversaw efforts to enhance effectiveness and efficiency, further strengthen the firm’s balance sheet and exceed our target of $150 million in annualized net savings after investments by the end of 2021. Combined, these efforts drove a 60% increase in our full-year adjusted diluted earnings per share to $3.09 and supported our ability to resume share repurchases early in 2022. • Further built on our leadership position in Greater China, the world’s fastest-growing market, where Invesco has been managing Chinese investments for decades. Driven by strong active investment performance, our China business has grown at a 43% CAGR since 2018, and the firm now has more than $112 billion of assets sourced from onshore Chinese clients (as of December 31, 2021). Invesco ranked #1 among onshore providers in China, building on a legacy of success in the broader Asia-Pacific region. • Continued to strengthen the firm’s ETF and indexed strategies offerings to clients and build on our position as the world’s fourth-largest ETF provider. The firm’s ETFs and indexed strategies AUM have more than doubled in the past three years, totaling $558 billion at the end of 2021. In 2021, Invesco achieved record growth in our global ETFs and Indexed Strategies business, with $85 billion in net inflows and a meaningful improvement in global ETF market share. • Further strengthened the organization’s commitment to Environmental, Social and Governance (ESG) efforts by further driving ESG considerations into the firm’s investment processes and signing the Net Zero Asset Managers Initiative. During 2021 we made further progress toward our goal of ensuring all of Invesco’s investment teams have fully embedded ESG considerations into their investment processes. As of December 31, 2021, approximately 75% of the AUM managed by Invesco’s investment teams have attained the ESG integration level as minimal but systematic integration. • Oversaw the work of prioritizing employee health and well-being during the prolonged pandemic while further advancing the firm’s culture globally, as reflected by employee opinion survey results in 2021 in which 91% of employees felt that senior leadership prioritized their health and safety. | |||||||||
– As a result of Mr. Flanagan’s commitment to further strengthening our Environmental, Sustainability and Governance (ESG) efforts, Invesco earned an A+ rating1. Adjusted financial measures are all non-GAAP financial measures. See the information in PRI (Principles for Responsible Investment) for its overall approach to responsible investment for the third consecutive year.
– Mr. Flanagan continued to champion our corporate culture and provide development opportunities for our talented professionals across the globe. We continued to make progress toward our commitment to improve diversity across our global business. We achieved the lower end of our diversity target ofAppendix A regarding 30-40%non-GAAP women in senior management roles in each region and overall, a 6% increase since setting the target in 2017.financial measures.
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• Continued to drive efforts within the firm to create a more diverse, equitable and inclusive workplace, including: the further expansion of our BRGs representing and supporting the needs of diverse communities, including women, Hispanics, veterans, LGBTQ+ and others; ensuring links between diversity goals and compensation at senior levels; and requiring all employees to participate in unconscious bias training. • Oversaw continued progress toward the firm’s goal of having greater than 35% female representation at the senior manager level (up from 27% in 2018), which Invesco achieved a year ahead of schedule. Personally oversaw efforts to expand female senior leadership within the firm, including the addition of Paula Tolliver as an Invesco Ltd. Board member and Jennifer Krevitt as Senior Managing Director and Chief Human Resources Officer. |
Our compensation committee has demonstrated over multiple years that our CEO’s compensation is aligned with the company’s financial performance
CEO pay is aligned to financial performance
The below charts demonstrate that over the last five years the committee has ensured that the CEO’s compensation has aligned closely with the financial outcomes of the firm.
5-year Invesco CEO pay versus financial performance
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2017 | 2018 | 20193 | 20203 | 20213 | ||||||||||||||||
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⬛ CEO compensation ($mil) | 13.8 | 11.0 | 12.3 | 11.1 | 16.8 | |||||||||||||||
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⬛ Adjusted operating income2 ($mil) | 1,482 | 1,392 | 1,656 | 1,665 | 2,183 | |||||||||||||||
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⬛ Adjusted operating margin2 (%) | 39.5 | 36.5 | 37.5 | 37.0 | 41.5 | |||||||||||||||
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⬛ Adjusted diluted EPS2 ($) | 2.7 | 2.43 | 2.55 | 1.93 | 3.09 | |||||||||||||||
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1. | For 2017 - 2020, consists of salary, annual cash bonus, annual stock deferral award and long-term equity award. For 2021, consists of salary, annual cash bonus, time-based equity and performance-based equity. For 2018 and 2019, 50% of the combined value of the annual stock deferral and long-term equity awards was performance-based. For 2020 and 2021, 60% of the equity awards was performance-based. See note on page 50 regarding differences from the summary compensation table. |
2. | The adjusted financial measures are all non-GAAP financial measures. See the information in Appendix A of this Proxy Statement regarding non-GAAP financial measures. |
3. | Financial results for 2019 include approximately 7 months of OppenheimerFunds financial results compared to 2020 and 2021, which include 12 months of OppenheimerFunds financial results. |
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2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||
Adjusted operating income1 | -0.5% | -13% | +14% | -6% | +19% | |||||||||||||||||||||||||||||||||||
Adjusted operating margin1 | -1 | -6 | +3 | -8% | +1% | |||||||||||||||||||||||||||||||||||
CEO total incentive compensation2 | -6% | -11% | +3% | -21% | +12% | |||||||||||||||||||||||||||||||||||
1 The adjusted financial measures are allnon-GAAP financial measures. See the information in Appendix B of this Proxy Statement regardingNon-GAAP financial measures. 2 Consists of annual cash bonuses, annual stock deferral awards and long-term equity awards. |
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Based on the quantitative outcome of Invesco’s performance and a qualitative review of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Based on the quantitative outcome of Invesco’s performance and a qualitative review of Mr. Lo’s individual performance, the committee determined that Mr. Lo’s total incentive compensation should be | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The below vesting matrix is for performance-based equity awards granted in February 2022 in connection with 2021 pay.
If Invesco’s Relative TSR is In addition, if the company’s 3-year absolute TSR is negative, vesting will be capped at 100%. The rigor of the thresholds, as well as the partial vesting of awards for failure to meet the target range and an upside opportunity for performance beyond the target range, align with the company’s operating plan and committee’s belief that the company’s performance-based awards demonstrate ourpay-for-performance philosophy. Below is a summary of the features of our
peers that we use for our performance-based equity awards.
Under the terms of its engagement with the committee, Johnson Associates does not provide any other services to the company unless the committee has approved such services. No such other services were provided in Role of the executive officers Our chief executive officer meets with thenon-executive directors throughout the year to discuss executive performance and compensation matters, including proposals on compensation for individual executive officers (other than himself). Our chief executive officer and head of human resources work with the committee to implement our compensation philosophy. They also provide to the committee information regarding financial and investment performance of the company as well as our progress toward our long-term strategic objectives. Our chief financial officer assists as needed in explaining specific aspects of the company’s financial performance.
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All NEOs are entitled to receive medical, life and disability insurance coverage and other corporate benefits available to most of the company’s employees working in the same country. NEOs also are | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The company provides limited perquisites to its NEOs to aid the executives in their execution of company business. The committee believes the value of perquisites | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Flanagan has personal use of company-provided aircraft. The company leases an airplane for which it pays direct operating expenses, monthly lease payments and management fees. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
67.
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Invesco did not provide tax reimbursements for any perquisites or other compensation paid to our NEOs. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The committee considers the tax and accounting consequences of the compensation plans applicable to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Martin L. Flanagan |
55
The terms of Mr. Flanagan’s amended employment agreement provide: | |||||||||||
| |||||||||||
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In the event of his termination without “cause” or resignation for “good reason”, Mr. Flanagan is entitled to receive the following payments and benefits (provided he has not breached certain restrictive covenants): | |||||||||||
| |||||||||||
| |||||||||||
| |||||||||||
a cash severance payment generally equal to the sum of (i) his base salary; (ii) the greater of $4,750,000 or his most recent annual cash bonus; and (iii) the amount of his most recent annual equity grant (unless the value thereof is less than 50% of the next previously-made grant, in which case the value of the next previously-made grant will be used); | |||||||||||
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Other NEOs |
The company maintains a forfeiture appeal policy which provides employees with a means to appeal the forfeiture of an incentive award that would otherwise be forfeited upon termination of employment – for retirement or any other reason – and a framework of guidelines for considering appeals made under the policy. The policy provides a process whereby “good leaver” and financial factors are considered in determining an appeal. In instances where an appeal is granted in part or in whole, the company will require that the employee agree to the following post-termination provisions: nondisclosure, non-recruitment, non-solicitation, non-disparagement, and noncompetition. The forfeiture appeal policy has been in place since 2011 and is administered by the compensation committee.
56 | 1 | For 2018, Mr. Taylor’s actual cash bonus, annual deferred award and long-term equity were nominally larger to reflect the size of the final incentive pool. |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Generally, all participants in our global equity incentive plans who hold equity awards, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The compensation committee has reviewed and discussed with management the Compensation Discussion and Analysis included in this Proxy Statement. Based on this review and discussion, the compensation committee has recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement and incorporated by reference into our Annual Report on Form10-K for the year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021. Respectfully submitted by the compensation committee: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C. Robert Henrikson (Chair) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sarah E. Beshar | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thomas M. Finke William | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Denis Kessler | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sir Nigel Sheinwald | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paula C. Tolliver1 G. Richard Wagoner, Jr. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christopher C. Womack2 Phoebe A. Wood
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