☒ | Filed by the Registrant | ☐ | Filed by a Party other than the Registrant
![]() NOTICE OF ANNUAL MEETING
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We use Securities and Exchange Commission rules allowing issuers to furnish proxy materials to their stockholders over the Internet. A Notice of Internet Availability of Proxy Materials or this Proxy Statement will first be mailed to our stockholders on or about December By Order of the Board of Directors. Corporate Secretary Atlanta, Georgia December
PROXY STATEMENT FOR 2023 ANNUAL MEETING 1 LETTER FROM OUR BOARD OF DIRECTORS
2 MUELLER WATER PRODUCTS, INC. PROXY SUMMARY This summary highlights information contained elsewhere in this Proxy Statement. This summary does not contain all of the information you should consider, and you should read the entire Proxy Statement carefully before voting. Company Overview The Mueller Water Products story began in 1857 when a young machine shop apprentice immigrated to America to establish his first business in Decatur, Illinois. In the 165 years since, the Mueller name has become known for innovative water distribution products of superior quality, many of which have become industry standards. Although the business has undergone many changes throughout the years, our commitment to innovation has never wavered. We are proud of our position as a leading manufacturer and marketer of products and services used in the transmission, distribution and measurement of water in North America and of our broad product and service portfolio found worldwide, which includes engineered valves, fire hydrants, pipe connection and repair products, metering products, leak detection, pipe condition assessment, pressure management products and software technology that provides critical water system data. This breadth of products and services enables us to deliver sustainable and efficient solutions that bridge the gap between intelligence and infrastructure, helping our customers deliver important water resources to their communities and empowering the smart cities of the future. We are one of the only companies that can fulfill the needs of water utilities from end to end – at the source, at the plant, below the ground, on the street and in the cloud. Built on a solid legacy of innovation, we have the expertise and vision to provide advanced infrastructure and technology solutions for transmitting, distributing, measuring and monitoring water more safely and effectively than ever before, demonstrating why Mueller Water Products is Where Intelligence Meets Infrastructure®. To learn more visit www.muellerwaterproducts.com. Notable Achievements in Fiscal 2022
PROXY STATEMENT FOR 2023 ANNUAL MEETING 3 PROXY SUMMARY Highlights of Fiscal 2022 Performance
Director Nominees Our directors are elected annually by the affirmative vote of a majority of the votes cast. All nominees are independent, except Mr. Hall, our President and CEO. The Board held 8 meetings in fiscal 2022 and each director attended at least 93% of the total number of meetings of the Board and committees of which the director was a member. 4 MUELLER WATER PRODUCTS, INC. PROXY SUMMARY The following table provides summary information about each director nominee. See “The Board of Directors” for more information about each nominee.
(1)Mr. O'Brien serves as our Non-Executive Chair. See "Proposal One: Election of Ten Directors — Board Structure — Board Leadership Structure" for more information. (2)Upon the recommendation of the Nominating and Corporate Governance Committee, the Board appointed Dr. Thomas as Chair of the Nominating and Corporate Governance Committee and Dr. Ortiz as Chair of the Environment, Health and Safety Committee effective October 1, 2022. (3)Mr. Slobodow joined the Board on October 13, 2022 in connection with the Cooperation Agreement as defined and discussed in the “Proposal One - Election of Ten Directors — The Board of Directors — Background to Solicitation” section below. PROXY STATEMENT FOR 2023 ANNUAL MEETING 5 PROXY SUMMARY 2022 Board Snapshot(1)
(1)In accordance with the Cooperation Agreement, Mr. Slobodow was appointed to the Board in October 2022. The fiscal 2022 metrics do not include or represent his appointment. Stockholder Engagement We believe that strong corporate governance should include regular engagement with our stockholders to discuss various topics, including corporate governance, compensation, performance, strategy and other matters. With regular engagement with our stockholders, we are able to strengthen our relationships with stockholders and better understand stockholders’ views on our policies and practices and other matters of importance to our business. In 2022, management and the Board continued to reinforce our commitment to building long-term relationships with our stockholders. During the year, we utilized a variety of avenues for engagement including our Annual Meeting of Stockholders, in-person and virtual meetings, quarterly earnings calls and other investor events.
Sustainability PRIORITY AND REPORTING We view sustainability, including environmental, social and governance (“ESG”) practices, as essential to our long-term viability. As an industry leader for 165 years, we embrace our responsibilities for sustainability stewardship. We recognize that these responsibilities not only address our commitment to our employees and our facilities, but also extend to our other stakeholders, including our investors, customers, suppliers and communities. Access to clean, safe water is essential. With the depletion of freshwater sources, the impacts of climate change and aging water infrastructure, we understand the importance of managing resources from start to finish. As a good steward and leader in water infrastructure, we embrace the opportunity and responsibility to make the world a better place for the benefit of future generations. 6 MUELLER WATER PRODUCTS, INC. PROXY SUMMARY In December 2020, the Company published its inaugural ESG Report, which includes the principal sustainability metrics the Company tracks: water withdrawal/energy usage, greenhouse gas emissions and solid waste creation. The most current ESG Report may be found at https://www.muellerwaterproducts.com/sustainability-program-vision-and-values. Our ESG Report is not a part of or incorporated by reference in this Proxy Statement. In fiscal 2022, we remained focused on our ESG commitments, which are intended to create value for our stakeholders. We took meaningful steps this year and established long-term environmental and social goals, which will be included in our next ESG Report. We are excited about the progress made through our ESG initiatives. SUSTAINABILITY APPROACH •Our approach to sustainability programs and initiatives is rooted in and guided by the sustainability reporting standards set forth by the Global Reporting Initiative, the Sustainability Accounting Standards Board and the United Nations Sustainable Development Goals. •When we first became a publicly traded company in 2006, our Board formed the Environment, Health and Safety Committee to oversee and guide our progress toward smart sustainability, making sustainability a key consideration in our directors’ deliberations and informing their overall approach to risk oversight. •Management formed the ESG Management Committee in 2020 to enhance even further our focus on developing, monitoring, implementing, measuring and reporting on ESG-related matters. •We tie ESG metrics to our executive compensation to highlight the importance of and focus on sustainability. SOCIAL STEWARDSHIP •We provide access to benefits and offer programs that are designed to support work-life balance, including physical, financial and mental health resources for employees and their families. •We promote and facilitate a high-performance, inclusive workplace. •We utilize a new associate development program to introduce and train new generations of employees entering the Mueller family. •We partner, each year, with the American Water Works Association and local organizations providing scholarships, charitable donations and employee volunteers. •We drive best practices development and benchmarking through the use of lean principles and our safety excellence and leadership program. •We focus on the prevention of all injuries, with an emphasis on the prevention of serious injuries and fatalities. •We seek to utilize new technologies and data analytics to drive safety performance improvement. ENVIRONMENTAL STEWARDSHIP •We strive to reduce our energy, water and material usage, maintaining a close watch on key performance indicators. •We engage our supply chain to improve packaging and freight efficiencies. •We strive to integrate sustainability key performance indicators into our facilities. •We seek to locate our facilities in areas with increased renewable energy sources. •We invest in the modernization of our facilities. •We develop and implement effective programs to upgrade to energy efficient equipment, utilize reusable material and implement cutting-edge technology. •We work to standardize equipment and procedures across all our facilities to promote consistent, efficient manufacturing processes. GOVERNANCE STEWARDSHIP •We are committed to a best-in-class governance structure built on a comprehensive set of corporate governance guidelines that promote the interests of our stakeholders. •Our Board is led by an independent Chair and supported by fully independent standing committees of the Board. •We promote director effectiveness through director orientation and mentoring, continuing education and regular Board, committee and director self and peer evaluations. •We foster board and committee independence by conducting frequent executive sessions without the CEO or other members of management present. PROXY STATEMENT FOR 2023 ANNUAL MEETING 7 PROXY SUMMARY •We maintain significant Common Stock ownership guidelines, prohibit hedging and pledging of our Common Stock and adhere to a clawback policy relative to executive compensation. •We maintain a robust stakeholder engagement program. See “Proposal One — Election of Ten Directors — The Board’s Role and Responsibilities — Board Oversight — Environmental, Social and Governance (“ESG”)” for information regarding the Company's governance practices.
Framework of 2022 Compensation The following table lists the primary elements of our compensation structure. This overview should be read in conjunction with the more complete information set forth under “Compensation Discussion and Analysis” below.
8 MUELLER WATER PRODUCTS, INC. PROXY SUMMARY
(1)Excludes Other Compensation. See "Executive Compensation — Summary Compensation Table" for total compensation earned.
(1)Applicable to only Mr. Takeuchi. (2)Applicable to only Ms. Zakas and Messrs. Hall, Heinrichs and Helms.
2022 Performance Highlights Related to Executive Compensation |
Adjusted Net Sales | Adjusted Operating Income from Continuing Operations | Adjusted Income from Continuing Operations | Return on Net Assets | |||
($ in millions) | ($ in millions) | ($ in millions) | (%) | |||
2017 | 815.7 | 121.3 | 68.5 | 34.4 | ||
2016 | 800.6 | 116.7 | 57.3 | 34.0 |
Company Results for Performance Evaluation Basis | |||||||||||||||||||||||||||||||||||
Company-Wide | Segment Performance (Water Management Solutions) | Return on Net Assets | Relative Total Shareholder Return | ||||||||||||||||||||||||||||||||
Net Sales | Adjusted EBITDA | Adjusted Working Capital as a % of Net Sales | Net Sales | Adjusted EBITDA | |||||||||||||||||||||||||||||||
($ in millions) | % | ($ in millions) | % | Percentile | |||||||||||||||||||||||||||||||
2022 | 1,247.4 | 195.2 | 27.5 | 516.0 | 115.6 | 19.6 | 44.4 |
CEO TOTAL TARGET COMPENSATION(2) | OTHER NEOs TOTAL TARGET COMPENSATION(2) | |||||||
![]() | ![]() |
2 Excludes Other Compensation. See "Executive Compensation — Summary Compensation Table" for total compensation as earned. 10 MUELLER WATER PRODUCTS, INC. PROXY SUMMARY •Long-term compensation based on rTSR is earned and vests over the applicable three-year cumulative performance period. Long-term compensation based on rTSR granted for the fiscal 2020 to fiscal 2022 performance period was earned at 88.9% of target. •Long-term compensation in the form of time-based restricted stock units and stock options awarded in fiscal 2022 vests annually over a three-year period. |
•Our equity incentive plan prohibits the repricing or exchange of equity-based awards without stockholder approval. •We prohibit hedging and pledging of our Common Stock by executives or directors. •Our executives and directors are subject to stock ownership guidelines. •We can “clawback” cash- or equity-based compensation paid to executives under certain circumstances. •We do not provide excise tax gross-up benefits. •We design our compensation programs to mitigate risk. •We require a “double trigger” with respect to equity award vesting upon a change-in-control. |
Proposal Three | |||||
Advisory Vote on the Frequency of the Advisory Vote to Approve Executive Compensation | |||||
![]() | The Board recommends voting on executive compensation ANNUALLY. |
Name | Age | Director Since | Independent | Experience | Board Committees(1) | |
![]() | Shirley C. Franklin | 72 | 2010 | ![]() | Executive Chair of Purpose Built Communities, Inc.; former Mayor of Atlanta | Comp; EHS |
![]() | Scott Hall | 53 | 2017 | President and Chief Executive Officer of Mueller Water Products, Inc. | Exec* | |
![]() | Thomas J. Hansen | 68 | 2011 | ![]() | Former Vice Chairman of Illinois Tool Works Inc. | Audit; EHS |
![]() | Jerry W. Kolb | 81 | 2006 | ![]() | Retired Vice Chairman of Deloitte & Touche LLP | Audit*; Comp; Governance |
![]() | Mark J. O’Brien(2) | 74 | 2006 | ![]() | Former Chairman and Chief Executive Officer of Walter Investment Management Corp. | Exec |
![]() | Bernard G. Rethore | 76 | 2006 | ![]() | Chairman Emeritus and former Chief Executive Officer of Flowserve Corporation | Audit; Governance*; Exec |
![]() | Lydia W. Thomas | 73 | 2008 | ![]() | Retired President and Chief Executive Officer of Noblis, Inc. | EHS*; Governance |
![]() | Michael T. Tokarz | 68 | 2006 | ![]() | Chairman of Tokarz Group, LLC | Comp*; Governance; Exec |
Ratification of the Appointment of our Independent Registered Public Accounting Firm for Fiscal 2023 | |||||
![]() | The Board recommends a vote FOR this proposal. |
Page | |||||
Background to Solicitation | |||||
Page | |||||
Summary Compensation Table | |||||
Proposal Four - Ratification of the Appointment of Our Independent Registered Public Accounting Firm for | |||||
Proposal One | |||||
Election of Ten Directors | |||||
![]() | The Board recommends a vote FOR each nominee for director. |
•Personal ethics and integrity •Independence | •Collaborative skills | • | |||||
•Commitment •Business acumen |
SKILLS & EXPERIENCE | ||||||||||||||||||||||||||||||||||||||
Franklin | Hall | Hansen | O’Brien | Sharritts | Slobodow | Thomas | Tokarz | Van Arsdell | ||||||||||||||||||||||||||||||
![]() ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ü | ü | ü | ü | |||||||||||||||||||||||||||
![]() | Corporate Governance | ü | ![]() | ü | ü | ![]() | ![]() | ![]() | ![]() | ![]() | ü | |||||||||||||||||||||||||||
![]() | Financial/Capital Allocation | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ü | ü | |||||||||||||||||||||||||||
![]() | Government and Regulatory Affairs | ü | ü | ![]() | ![]() | ü | ü | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||
![]() | International Business | ![]() | ![]() | ![]() | ü | ![]() | ![]() | ![]() | ü | ü | ü | |||||||||||||||||||||||||||
![]() ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||||||||||
Mergers and Acquisitions | ü | ü | ü | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||||||
![]() | Multiple-Part Manufacturing | ü | ü | ![]() | ü | ü | ![]() | ü | ![]() | ![]() | ||||||||||||||||||||||||||||
![]() ![]() | ![]() | |||||||||||||||||||||||||||||||||||||
Strategic Planning | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ü | ü | ||||||||||||||||||||||||||||
![]() | Enterprise Risk Management | ü | ü | ü | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||||||
![]() | Human Capital Management | ü | ü | ü | ü | ![]() | ü | ![]() | ü | ![]() | ![]() | ü | ||||||||||||||||||||||||||
![]() | Environment, Health and Safety | ü | ü | ü | ![]() | ü | ü | ü | ![]() | |||||||||||||||||||||||||||||
![]() | Technology | ![]() | ü | ![]() | ü | ü | ü | ü | ||||||||||||||||||||||||||||||
![]() | Materials Science and Engineering | ![]() | ![]() | ü | ü | ![]() | ||||||||||||||||||||||||||||||||
![]() | Environmental, Social and Governance (“ESG”) | ü | ü | |||||||||||||||||||||||||||||||||||
![]() | Branding | ü | ü | ü | ü | ü | ü | ü | ü |
![]() ![]() | Shirley C. Franklin President, Clarke-Franklin & Associates Age: Independent Director Committees: ![]() | Experience | |||
•President, Clarke-Franklin & Associates, Inc., a management consulting firm (1995 – present) •Co-founder, Authenticity Partners (2022 – present) •Executive Board | |||||
Qualifications | |||||
•Executive Leadership, Corporate Governance, Strategic Planning and Enterprise Risk Management expertise gained from her civic involvement and three-decade executive management career, as well as her public company •Environment, Health and Safety experience displayed by her dedicated substantial effort to environmental, safety and health initiatives, including launching Atlanta’s Office of Sustainability and its first multi-year sustainability plan and driving over $7 billion dollars in improvements to Atlanta’s public water systems and airport and parks infrastructure. As a Board member of the Centers for Disease Control and Prevention (CDC) Foundation, Ms. Franklin oversaw the fundraising and disbursement of over $500 million during the COVID-19 pandemic and Ebola and monkeypox outbreaks. •Financial/Capital Allocation knowledge gained during her multi-decade career in the private sector and in public service, as she oversaw numerous complex capital projects, including the launch of the Atlanta Beltline and nearly $5 billion of investment in the city’s infrastructure. •Government and Regulatory Affairs expertise gained from her tenure as Mayor of Atlanta. •Mayor Franklin also provides expertise in Human Capital Management and Branding. •At Delta Air Lines, | |||||
Other Boards and Organizations | |||||
•Director, Delta Air Lines (2011 – 2017) •Board Member, Paul Volcker Alliance, a non-profit dedicated to •Board Member, CDC Foundation •Board Member on several other non-profit organizations including CF Foundation; Atlanta | |||||
Education | |||||
•BA, Sociology, Howard University •MA, Sociology, University of |
![]() ![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() J. Scott Hall President and CEO, Mueller Water Products Age: Director ![]() | Experience | ||||
•President and Chief Executive Officer, •President and CEO, •Held several leadership roles, including at General Cable, a leading manufacturer of wire and | |||||
Qualifications | |||||
•Executive Leadership, International Business, Strategic Planning, Technology and Mergers and •Financial/Capital Allocation, Multiple-Part Manufacturing expertise from his oversight of business units and companies with billions of dollars in sales, as well as extensive understanding of Six Sigma and LEAN manufacturing processes. •Mr. Hall also brings expertise in Government and Regulatory Affairs, Enterprise Risk Management, Human Capital Management, Environment, Health and Safety, and Branding. | |||||
Other Boards and Organizations | |||||
•Director, Altra Industrial Motion, Inc. (2020 – present) | |||||
Education | |||||
•BCom, Memorial University of Newfoundland •MBA, University of Western Ontario Ivey School of Business |
![]() ![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() Thomas J. Hansen Age:73 Independent Director since2011 Committees: ![]() | Experience | ||||
•Vice Chairman (2006 – 2012); Executive Vice President with responsibility for Worldwide Metal and Plastic Fastener and Components businesses, Fluids & Polymers and Construction businesses, as well as its Industrial Metals and Plastic segment (1998 – 2006); President, Worldwide Metal Fastener and Components businesses (1993 – 1998); President North American Industrial and Automotive Fastener businesses (1990 – 1993); Vice President and General Manager, North American Industrial Metal Fastener and Buckle Divisions (1986 – 1990); General Manager, Shakeproof Industrial Products businesses (1983 – 1986); sales and marketing manager (1980 – 1983); Illinois Tool Works Inc. | |||||
Qualifications | |||||
•Executive Leadership, Financial/Capital Allocation, International Business, Strategic Planning, Enterprise Risk Management and Environmental, Health and Safety gained through his 32-year career at Illinois Tool Works in roles of increasing responsibility including oversight of manufacturing with various components (industrial metals, plastics, fluids & polymers). •Multi-Part Manufacturing expertise displayed throughout his career at Illinois Tool Works, a diversified manufacturer of fasteners and components, consumable systems and a variety of specialty products and equipment. •Mergers and Acquisitions experience gained from overseeing various divestitures and acquisitions during his tenure as •Mr. Hansen •At CDW Corp., Mr. Hansen oversaw a 56% TSR (+20% relative to the S&P 500) during his tenure as | |||||
Other Boards and Organizations | |||||
•Lead Independent Director, Standex International Corporation (2013 – present) •Director, Terex Corporation (2008 – present) •Director, Gill Industries Inc., a •Director, CDW Corp. (2005 – 2008) | |||||
Education | |||||
•BS, Marketing, Northern Illinois University •MBA, Governors State |
![]() ![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() ![]() | Mark J. O’Brien Independent Director since2006 Committees: ![]() | Experience | |||||
•Chairman •President and Chief Executive Officer, •Served in various executive capacities | |||||||
Qualifications | |||||||
•Executive Leadership and Corporate Governance gained through his tenure as the CEO of three different real estate companies in •Financial/Capital Allocation and Strategic Planning expertise from his decades at Pulte Homes, where, as part of the senior management team, company revenues tripled to $7.5 billion and earnings per share rose by 450 percent. •Mergers and Acquisitions experience from overseeing the acquisitions of Residential Capital’s mortgage business and Green Tree Servicing (October 2012 and March 2011) during his tenure as CEO of Walter Investment Management. •Mr. •At Pulte Homes Mr. O’Brien oversaw a | |||||||
Other Boards and Organizations | |||||||
•Director, Ditech Holding Corp. (previously Walter Investment Management) (2009 – 2017) | |||||||
Education | |||||||
•BA, History, University of | |||||||
![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() ![]() Christine Ortiz Morris Cohen Professor of Materials Science and Engineering, Massachusetts Institute of Technology Age:52 Independent Director since2019 Committees: ![]() | Experience | ||||
•Morris Cohen Professor of Materials Science and Engineering (present); Dean for Graduate Education (2010 – 2016); Massachusetts Institute of Technology •Author of more than 200 scholarly publications and received 30 national and international honors, including the Presidential Early Career Award in Science and Engineering awarded by President George W. Bush •Founder, Station1; an innovative, nonprofit, higher education educational institution | |||||
Qualifications | |||||
•Multiple-Part Manufacturing, Technology and Materials Science and Engineering knowledge through her background as a dean and career as a distinguished scientist and engineer whose research focuses on multi-scale mechanics of structural materials, materials design, nanotechnology, additive manufacturing and computational materials. •Executive Leadership, Strategic Planning and Branding experience gained through her experience as a founder of Station1 innovative higher education educational institution and Massachusetts Institute of Technology’s Dean for Graduate Education. At Station1, Dr. Ortiz has partnered with over 90 technology-focused startup companies, social enterprises, and non-profit organizations on research and development projects. As Dean, she supported over 7,000 graduate students in 45 graduate degree programs across 5 academic schools. •Dr. Ortiz also provides expertise in Financial/Capital Allocation, Government and Regulatory Affairs, Enterprise Risk Management, Environment, Health and Safety, International Business and Environmental, Social and Governance. | |||||
Other Boards and Organizations | |||||
Education | |||||
•BS, Materials Science and Engineering, Rensselaer Polytechnic Institute •MS, Materials Science and Engineering, Cornell University •PhD, Materials Science and Engineering, Cornell University |
![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() Jeffery S. Sharritts EVP and Chief Customer and Partner Officer, Cisco Age: 54 ![]() | Experience | ||||
Qualifications | |||||
•Executive Leadership, •Financial/Capital Allocation, Government and Regulatory Affairs, Human Capital Management and International Business experience gained through his role as Senior Vice President of the Americas for Cisco, where he managed a business unit with more than $29 billion of annual sales in 49 countries, oversaw products in both commercial and public | |||||
Other Boards and Organizations | |||||
•Advisory Board Member, Georgia Chamber of Commerce •Advisory Board Member, Metro Atlanta Chamber of Commerce | |||||
Education | |||||
•BS, Business Administration, The Ohio State University |
![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() Brian L. Slobodow Operating Partner, Operational Resource Group Age:54 Independent Director since2022 Committees: ![]() | Experience | |||||
•Operating Partner, Operational Resource Group, whose clients include a leading middle-market private equity firm (2021 – present) •Operating Executive, Golden Gate Capital (2015 – 2020), where he gained extensive experience on management teams, serving as the Chief Operating Officer of Atrium (2013 – 2015), Chief Executive Officer, Chief Administrative Officer, and a director of U.S. Silica Company (2011 – 2013) and President and Chief Operating Officer of Neways International (2007 – 2011), all of which are former Golden Gate Capital portfolio companies •Vice President, Global Supply Chain (2006 – 2007), Chief Procurement Officer (2005 – 2006) and Director, Contract Manufacturing (2003 – 2005), Johnson & Johnson •Principal, A.T. Kearney (2000 – 2003) | ||||||
Qualifications | ||||||
•Executive Leadership/CEO, Corporate Governance and Financial/Capital Allocation, through his years of experience as an executive at Golden Gate Capital and in executive leadership at a number of the firm’s portfolio companies. •International Business, Multiple-Part Manufacturing and Strategic Planning, gained through his over 30 years of operations expertise while in various roles at Johnson & Johnson and his •Environment, Health & Safety and Environmental, Social and Governance through his experience as CEO of U.S. Silica where Mr. Slobodow lead the •Mr. Slobodow also brings expertise in Government and | ||||||
Other Boards and Organizations | ||||||
![]() | •Director, Marmic Fire and Safety, a full-service fire protection company based in Joplin, MO (2021 – present) •Director, ANGUS Chemical Company (2018 – 2020) •Director, Cole-Parmer (2018 – 2019) •Director, Springs Window Fashion (2016 – 2018) | |||||
Education | ||||||
•BS, Industrial and Manufacturing Engineering, University of Rhode Island •MBA, Massachusetts Institute of Technology Sloan School of Management |
![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() Lydia W. Thomas Age:78 Independent Director ![]() | Experience | |||||
•Senior Vice President and General Manager (1992 – 1996); Vice President (1989 – 1992); Technical Director (1982 – 1989); The MITRE Corporation, Center for Environment, Resources and Space •Founding Member appointed by President Bush, Homeland Security Advisory Council (2002 – 2016) | ||||||
Qualifications | ||||||
•Executive Leadership, Corporate Governance, Financial/Capital Allocation, Government and •Mergers and Acquisitions experience gained from overseeing the acquisitions of Gill/Balsano Consulting and Jennings Ryan & Kolb (October 2004) as Noblis CEO •Dr. Thomas also provides expertise in International Business, Human Capital Management and Branding. •At Cabot, Dr. Thomas oversaw a TSR of 1,055% (+367% relative to the S&P 500) during her tenure as a director. | ||||||
Other Boards and Organizations | ||||||
•Member, Constant Associates Inc. Advisory Board (2020 – Present) •Member, Council on Foreign Relations (2011 – Present) •Emerita Member, Charles Stark Draper Laboratory •Director, Cabot Corporation (1994 – 2017) •Director, Washington Mutual Investors Fund (2010 – 2019) •Member, Governor’s Commission on Climate Change, Commonwealth of Virginia (2007 – 2008) •Senior Advisor, Northern Virginia Technology Council (2012 – 2017) •Director, Northern Virginia Technology Council (2003 – 2012) •Member, Virginia Governor’s Higher Education Summit Steering Committee (1994 – 1998) •Member, Virginia Research and Technology Advisory Committee (1990 – 1998) | ||||||
Education | ||||||
•BS, Zoology, Howard University •MS, Microbiology, American University •PhD, Cytology, Howard University |
![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() ![]() | Michael T. Tokarz Age:73 Independent Director ![]() | Experience | |||||
•Co-Founder, Public Pension Capital, a private equity fund (2014 – present) •General Partner, New York Administrative Partner, a member of the | |||||||
Qualifications | |||||||
•Executive Leadership, Financial/Capital Allocation and Strategic Planning experience gained during his multi-decade private equity •Corporate Governance and Enterprise Risk Management experience gained through his service on multiple public-company boards in the financial services, insurance, and industrial sectors. In 2007, he was honored by the Outstanding Directors Exchange as an Outstanding Director of the Year. •Mergers and Acquisitions expertise gained through his leadership position at KKR overseeing multiple corporate acquisition and disposition processes. Recent representative transactions in his role at Public Pension Capital include the 2019 sale of Viteos Fund Services and the 2017 acquisition of Inframark. •Mr. Tokarz also provides expertise in Government and Regulatory Affairs, International Business, Multiple-Part Manufacturing and Human Capital Management. •As an IDEX director, Mr. Tokarz oversaw a | |||||||
Other Boards and Organizations | |||||||
•Vice Chair, Shield T3, a COVID-19 testing company owned by the Board of •Chair, MVC Capital, Inc. (2003 – 2020) •Chair, Walter Energy, Inc. (1987 – 2016) •Director, CNO Financial Group, Inc., (formerly Conseco, Inc.), an insurance provider (2003 – 2017) •Director, Walter Investment Management Corp. (2009 – 2017) •Director, IDEX Corporation (1987 – 2015) | |||||||
Education | |||||||
•BA, Economics, with high distinction, | |||||||
![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() Stephen C. Van Arsdell Former Senior Partner, Deloitte; Chair & CEO, Deloitte & Touche Age:72 Independent Director since2019 Committees: ![]() | Experience | ||||
•Senior Partner of Deloitte LLP and member of the Board of Directors, including as Vice-Chair (2003 – 2009); senior management roles including Chairman, Chief Executive Officer, and Chief Quality Officer (2010 – 2012) and Deputy Chief Executive Officer (2009 – 2010) of Deloitte & Touche LLP, which he joined in 1975 | |||||
Qualifications | |||||
•Executive Leadership/CEO, Corporate Governance, Financial/Capital Allocation and Risk Management skills gained from Mr. Van Arsdell’s time in senior leadership at Deloitte and Deloitte & Touche where he oversaw a national organization of 15,000 professionals providing audit, assurance, risk and capital markets advisory services. •International Business, Strategic Planning, Governmental and Regulatory Affairs experience gained thorough his roles in Deloitte’s international operations, serving as a key member of the Global Audit Leadership Team, where he helped develop the firm’s strategic plans for the global audit practice as well as in his service to some of Deloitte’s most significant clients with extensive international operations. •Mergers and Acquisitions experience from participating in the M&A activities of many clients while at Deloitte and of First Midwest Bancorp as a member of the Board of Directors, as well as in the merger of First Midwest Bancorp and Old National Bancorp. | |||||
Other Boards and Organizations | |||||
•Director, Old National Bancorp (2022 – present) •Director, First Midwest Bancorp (2017 – 2022) •Audit Committee Member, Brown Brothers Harriman, a privately held global financial services firm (2015 – present) •Chair, Board of Trustees, The Morton Arboretum (2020 – present) | |||||
Education | |||||
•BS, Accounting, University of Illinois •MAS, University of Illinois •Certified Public Accountant (CPA) |
![]() | Chair | ![]() | Member | A = Audit | C = Compensation | E = EHS | G = Governance | O = Capital Allocation | X = Executive |
![]() | 9 of our 10 directors are independent, including the Chair | ![]() | 10 of our 10 directors have Executive Leadership/CEO experience | ||||||||
![]() | 3 of our 10 directors are women | ![]() | 4 of our 10 directors are from underrepresented minorities | ||||||||
![]() | 7 of our 10 directors have Corporate Governance experience |
In discharging its responsibility related to director nominations, the Governance Committee receives input from other directors and, if applicable, an independent professional search firm. It also considers and evaluates candidates recommended by stockholders, as described below. The Governance Committee utilizes the same process and criteria to evaluate all candidates. The Governance Committee’s comprehensive evaluation includes multiple stages. The Chair of the Governance Committee interviews each qualified candidate and selects candidates to be interviewed by other members of the Governance Committee. The Governance Committee's evaluation includes a reference and background check, as well as interviews and discussions about the candidate’s qualifications, availability and commitment. The Governance Committee reviews the results of all interviews and makes a recommendation to the full Board with respect to nominating a candidate for election to the Board. In evaluating candidates, the Governance Committee considers a variety of qualifications, experience, attributes and skills and recognizes that a diversity of knowledge, viewpoints and experience can enhance the Board’s effectiveness. Accordingly, as part of its evaluation, the Governance Committee considers how the candidate’s background, qualifications, experience, attributes and skills may enhance the quality of the Board’s deliberations and decisions. | Nomination Process At-a-Glance | ||||||||||
1 | Establish Candidate Pool | ||||||||||
2 | Conduct Interview by Chair | ||||||||||
3 | Perform Reference / Background Check and Governance Committee Interviews | ||||||||||
4 | Review Results and Recommend | ||||||||||
Skill/Experience | Relevance to Mueller Water Products | ||||
![]() | Executive Leadership/CEO experience. Experience serving in top management positions is important since these directors bring perspective in analyzing, shaping and overseeing strategy and the execution of important operational and policy issues at a senior level. | ||||
![]() | Corporate Governance expertise. Directors who have corporate governance experience can assist the Board in fulfilling its responsibilities related to the oversight of our legal, environmental and regulatory compliance. | ||||
![]() | Financial/Capital Allocation expertise. Knowledge of financial markets, financing and funding operations, accounting and financial reporting processes is important since it assists our directors in understanding, advising and overseeing our capital structure, financing and investing activities, financial reporting and internal control of these activities. | ||||
![]() | Government and Regulatory Affairs expertise. Directors who have served in government positions or who have worked extensively with governments, environmental or regulatory bodies can provide oversight of compliance with rules and regulations and insight into working constructively with government, environmental and regulatory bodies. | ||||
![]() | International Business experience. Since we manufacture and sell certain of our products outside the United States, directors with global expertise can provide a useful business and cultural perspective regarding significant aspects of our businesses. | ||||
![]() | Mergers and Acquisitions experience. Since we have a strategy of selectively pursuing potential acquisitions, directors who have a background in M&A transactions can provide useful insight into developing and implementing strategies for growing our businesses through combination with other organizations. | ||||
![]() | Multiple-part Manufacturing and Operations experience. Experience in manufacturing is useful in understanding our research and development efforts, product engineering, design and manufacturing, operations, products and the market segments in which we compete. | ||||
![]() | Strategic Planning expertise. We operate in competitive markets and our businesses are subject to a wide variety of risks. Directors who have strategic planning experience can assist the Board in adopting policies and procedures responsive to the risks we face. | ||||
![]() | Enterprise Risk Management experience. In light of the potential financial and reputational damage that can occur when companies fail to oversee compliance and properly manage risk, it is increasingly important to include directors with extensive enterprise risk management experience. | ||||
![]() | Human Capital Management experience. Because we recognize that an engaged and diverse workforce is the foundation of our success, it is important that our directors have experience with organizational management and talent development, including employee compensation and benefits, engagement and training, and diversity and inclusion. | ||||
![]() | Environment, Health and Safety expertise. We are committed to responsible environmental stewardship and rigorous health and safety oversight. We believe directors with EHS experience can help drive strong environment, health and safety performance not only at the most strategic level but also throughout the organization. | ||||
![]() | Technology experience. Directors with backgrounds in engineering disciplines, computer science, software development and cyber security are increasingly important in light of our strategic focus on manufacturing and product technologies. | ||||
![]() | Materials Science and Engineering experience. Directors with a background in these areas are important to our understanding of how metals, nanomaterials and other substances meet the electrical, chemical or mechanical requirements of our products. | ||||
![]() | Environmental, Social and Governance (“ESG”) experience. Directors with experience overseeing ESG strategy are important to ensure the Company successfully implements and executes the appropriate strategies for sustainability; diversity, equity and inclusion; and human capital management. | ||||
![]() | Branding expertise. Directors who have worked to define and maintain perceptions of the nature and focus of an enterprise, specifically during transformative change, can be an invaluable asset. |
Audit Committee •Oversees risk management related to accounting and financial reporting, the audit process, internal control over financial reporting and disclosure controls and procedures •Oversees the internal audit function •Monitors legal and compliance issues and active matters •Reviews cyber and data security matters, including our risk mitigation initiatives | Compensation and Human Resources Committee •Oversees risk management related to the risks and rewards associated with our compensation policies and practices •Oversees management development and succession planning across senior positions | ||||
Environment, Health and Safety Committee •Oversees risk management related to risks directly related to the environment, health and safety areas | Nominating and Corporate Governance Committee •Oversees risk management related to governance structure and processes and risks arising from related person transactions |
2017 | 2016 | ||||||
Audit fees(1) | $ | 2.4 | $ | 2.5 | |||
Audit-related fees | — | 0.1 | |||||
Tax fees | 0.4 | 0.1 | |||||
Total fees | $ | 2.8 | $ | 2.7 |
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•Corporate Governance Guidelines | •Board Committee Charters | •Bylaws | ||||||
•Code of Business Conduct and Ethics | •Certificate of Incorporation | • | ||||||
Audit Committee | ||||||||||||||||||||||
CURRENT MEMBERS Van Arsdell (Chair) Rethore(1) Sharritts | •Oversees the integrity of our financial statements, financial reporting activities and accounting policies and procedures. •Selects and oversees the independent registered public accounting firm, approves its services (including both audit and non-audit services) and fees, and evaluates its performance. In its evaluation, the Audit Committee considers the firm’s reputation for independence and integrity, the qualifications and performance of the firm’s personnel and the effectiveness of the firm’s communications, the appropriateness of fees and Public Company Accounting Oversight Board reports on the firm and its peers. •Selects, reviews and evaluates the lead partner of the audit engagement team. •Reviews the scope and results of the independent registered public accounting firm’s audits. •Reviews the scope of the internal audit function, internal audit plans, internal audit reports and corrective actions taken in response to internal audit findings. Evaluates the performance of the internal audit function. •Oversees our internal accounting systems and related internal control over financial reporting, as well as our financial risk management profile. •Oversees our legal compliance and ethics programs and the •Reviews cyber and data security matters, including our risk mitigation initiatives. •Oversees the appropriateness and reasonableness of the Company's applicable ESG standards, measurement mechanisms and key performance indicators. | |||||||||||||||||||||
13 meetings in fiscal | ||||||||||||||||||||||
2022 |
Compensation and Human Resources Committee | |||||||||||||||||||||
Tokarz(Chair) Franklin Sharritts Van Arsdell | • •Reviews and approves goals and objectives for compensation of our CEO, evaluates performance in relation to these goals and objectives, and determines and approves the compensation of our CEO. •Reviews and approves the compensation of all executive officers. •Reviews and recommends the compensation of non-employee directors. •Reviews and approves stock ownership requirements for officers and directors. •Oversees an annual risk assessment process related to compensation programs. • •Oversees matters related to human capital management, including matters relating to employee compensation, benefits, engagement, training, diversity, inclusion and other social matters, including such matters related to the Company’s ESG program. | ||||||||||||||||||||
7 meetings in fiscal | |||||||||||||||||||||
2022 |
Franklin Hansen | Thomas | •Reviews policies and procedures related to compliance with laws, regulations and rules pertaining to the environment, health and safety. •Monitors compliance with health, safety and environmental policies, programs and practices. •Encourages activities and initiatives that demonstrate sound environmental stewardship. •Reviews the scope of internal and independent environmental, health and safety audits and assessments. •Reviews results of internal compliance reviews and remediation projects. •Supports the Board’s responsibilities relating to sustainability and corporate social responsibility. •Reviews the Company’s environmental, health and safety performance and related initiatives. •Oversees matters related to the environmental, materials sustainability and employee health and safety programs. | |||||||||||||||||
2022 |
Nominating and Corporate Governance Committee | ||||||||||||||||||||
Tokarz | •Establishes criteria for and qualifications of persons suitable for nomination as directors and reports recommendations to Board. •Selects and recommends director candidates to be considered for election. •Develops and annually reviews the Governance Guidelines. •Oversees the annual Board and committee evaluation process. •Makes recommendations to the Board related to committee structure and membership. •Advises the Board regarding corporate governance matters. •Monitors the orientation and continuing education programs for directors. •Oversees the development, updating and production of the Company's annual ESG Report, reviews and makes recommendations to the Board regarding our ESG practices and reviews applicable Committee ESG metrics. | |||||||||||||||||||
8 meetings in fiscal 2022 |
Executive Committee | ||||||||||||||||||||
CURRENT MEMBERS Hall (Chair) O’Brien Rethore(1) Tokarz Van Arsdell | •Exercises interim powers delegated to it when a matter requires expeditious Board action or when it would not be practical for the full Board to meet. | |||||||||||||||||||
2022 |
Capital Allocation and Operations Committee | ||||||||||||||||||||
CURRENT MEMBERS(1) Hall(Co-Chair) Slobodow (Co-Chair) O’Brien | •Reviews, analyzes, oversees, and makes recommendations to the Board regarding the capital allocation and operations of the Company. •Identifies opportunities to create value, including in relation to improving production rates, accelerating the completion timeline of the facility modernization projects and overseeing any targeted action plans relating to the foregoing. | |||||||||||||||||||
0 meetings in fiscal 2022 |
The Board held 8 meetings in fiscal 2022 and each director attended at least 93% of the total number of meetings of the Board and its committees of which she or he was a member in fiscal 2022. Although the Company does not have a formal policy requiring attendance at annual meetings, directors are encouraged to attend, and each then-current director also attended the 2022 Annual Meeting of Stockholders. | Fiscal 2022 Board/Committee meeting attendance | ||||
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Board Composition and Leadership | ü | Our Board is led by an independent Non-Executive Chair who is not our CEO | |||||||||
Each of our director nominees, other than our President and CEO, is independent | |||||||||||
ü | Our directors have complementary and diverse skills sets, backgrounds and experiences and are continually educated on our industry | ||||||||||
ü | Our Board size promotes an open dialogue among directors | ||||||||||
Director Elections | ü | We use a majority voting standard in uncontested director elections, and require incumbent directors who fail to receive a majority of the votes cast to tender their resignation | |||||||||
ü | Directors are elected on an annual basis | ||||||||||
Board Committee Structure | ü | We have a well-developed committee structure with clearly understood responsibilities | |||||||||
ü | |||||||||||
Director Effectiveness | ü | Our Board, committees and directors conduct regular self and peer evaluations, led by our Governance Committee, to assess effectiveness and areas for improvement | |||||||||
Director Responsibilities | ü | Each of our directors has input into the setting of the Board agenda | |||||||||
ü | Each of our directors has unfettered access to management, | ||||||||||
ü | Our Board frequently meets in executive session without the | ||||||||||
ü | stockholders | ||||||||||
Director Compensation | ü | ||||||||||
We pay a substantial portion of non-employee director compensation in equity grants |
DIRECTOR COMPENSATION TABLE |
Fees Earned or Paid in Cash ($) | Stock Awards ($)(2) | Total ($) | |||||||||||||||||||||
Name | Annual Retainer ($)(1) | Meeting Fees ($) | Other ($)(3) | Total ($) | |||||||||||||||||||
Shirley C. Franklin | 65,000 | 30,000 | 1,500 | 96,500 | 114,990 | 211,490 | |||||||||||||||||
Thomas J. Hansen | 65,000 | 28,500 | 1,500 | 95,000 | 114,990 | 209,990 | |||||||||||||||||
Jerry W. Kolb(4) | 28,111 | 21,000 | — | 49,111 | 114,990 | 164,101 | |||||||||||||||||
Mark J. O’Brien | 165,000 | 12,000 | — | 177,000 | 114,990 | 291,990 | |||||||||||||||||
Christine Ortiz | 65,000 | 34,500 | 1,500 | 101,000 | 114,990 | 215,990 | |||||||||||||||||
Bernard G. Rethore | 75,000 | 43,500 | — | 118,500 | 114,990 | 233,490 | |||||||||||||||||
Jeffery S. Sharritts | 65,000 | 39,000 | — | 104,000 | 114,990 | 218,990 | |||||||||||||||||
Brian L. Slobodow(5) | — | — | — | — | — | — | |||||||||||||||||
Lydia W. Thomas | 75,000 | 31,500 | 1,500 | 108,000 | 114,990 | 222,990 | |||||||||||||||||
Michael T. Tokarz | 80,000 | 34,500 | — | 114,500 | 114,990 | 229,490 | |||||||||||||||||
Stephen C. Van Arsdell | 80,000 | 39,000 | — | 119,000 | 114,990 | 233,990 |
Option Awards | Stock Awards | |||||||||||||
Number of Securities Underlying Options (#) | Number of Shares or Units of Stock That Have Not Vested (#) | |||||||||||||
Exercisable | Unexercisable | |||||||||||||
Shirley C. Franklin | — | — | 8,825 | |||||||||||
Thomas J. Hansen | 20,447 | — | 8,825 | |||||||||||
Jerry W. Kolb(1) | — | — | 8,825 | |||||||||||
Mark J. O’Brien | 33,025 | — | 8,825 | |||||||||||
Christine Ortiz | — | — | 8,825 | |||||||||||
Bernard G. Rethore | 20,447 | — | 8,825 | |||||||||||
Jeffery S. Sharritts | — | — | 8,825 | |||||||||||
Brian L. Slobodow(2) | — | — | — | |||||||||||
Lydia W. Thomas | 33,025 | — | 8,825 | |||||||||||
Michael T. Tokarz | 33,025 | — | 8,825 | |||||||||||
Stephen C. Van Arsdell | — | — | 8,825 |
Proposal Two | |||||
Advisory Vote to Approve Executive Compensation | |||||
![]() | The Board recommends a vote FOR this proposal. |
Fiscal 2017 Director Compensation Table | ||||||||||||
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($)(2) | All Other Compensation ($) | Total ($) | ||||||||
Annual Retainer ($)(1) | Meeting Fees ($) | Total ($) | ||||||||||
Shirley C. Franklin | 55,000 | 31,500 | 86,500 | 89,989 | — | 176,489 | ||||||
Thomas J. Hansen | 55,000 | 39,000 | 94,000 | 89,989 | — | 183,989 | ||||||
Jerry W. Kolb | 70,000 | 54,000 | 124,000 | 89,989 | — | 213,989 | ||||||
Joseph B. Leonard(3) | 13,750 | 21,000 | 34,750 | 89,989 | — | 124,739 | ||||||
Mark J. O’Brien | 105,000 | 18,000 | 123,000 | 89,989 | — | 212,989 | ||||||
Bernard G. Rethore | 62,500 | 51,000 | 113,500 | 89,989 | — | 203,489 | ||||||
Lydia W. Thomas | 62,500 | 34,500 | 97,000 | 89,989 | — | 186,989 | ||||||
Michael T. Tokarz (4) | 70,000 | 42,000 | 112,000 | 89,989 | 20,674 | 222,663 |
Fees Earned or Paid in Cash ($) | Stock Awards ($)(2) | Total ($) | |||||||||||||||||||||
Name | Annual Retainer ($)(1) | Meeting Fees ($) | Other ($)(3) | Total ($) | |||||||||||||||||||
Shirley C. Franklin | 65,000 | 30,000 | 1,500 | 96,500 | 114,990 | 211,490 | |||||||||||||||||
Thomas J. Hansen | 65,000 | 28,500 | 1,500 | 95,000 | 114,990 | 209,990 | |||||||||||||||||
Jerry W. Kolb(4) | 28,111 | 21,000 | — | 49,111 | 114,990 | 164,101 | |||||||||||||||||
Mark J. O’Brien | 165,000 | 12,000 | — | 177,000 | 114,990 | 291,990 | |||||||||||||||||
Christine Ortiz | 65,000 | 34,500 | 1,500 | 101,000 | 114,990 | 215,990 | |||||||||||||||||
Bernard G. Rethore | 75,000 | 43,500 | — | 118,500 | 114,990 | 233,490 | |||||||||||||||||
Jeffery S. Sharritts | 65,000 | 39,000 | — | 104,000 | 114,990 | 218,990 | |||||||||||||||||
Brian L. Slobodow(5) | — | — | — | — | — | — | |||||||||||||||||
Lydia W. Thomas | 75,000 | 31,500 | 1,500 | 108,000 | 114,990 | 222,990 | |||||||||||||||||
Michael T. Tokarz | 80,000 | 34,500 | — | 114,500 | 114,990 | 229,490 | |||||||||||||||||
Stephen C. Van Arsdell | 80,000 | 39,000 | — | 119,000 | 114,990 | 233,990 |
Option Awards | Stock Awards | |||||||||||||
Number of Securities Underlying Options (#) | Number of Shares or Units of Stock That Have Not Vested (#) | |||||||||||||
Exercisable | Unexercisable | |||||||||||||
Shirley C. Franklin | — | — | 8,825 | |||||||||||
Thomas J. Hansen | 20,447 | — | 8,825 | |||||||||||
Jerry W. Kolb(1) | — | — | 8,825 | |||||||||||
Mark J. O’Brien | 33,025 | — | 8,825 | |||||||||||
Christine Ortiz | — | — | 8,825 | |||||||||||
Bernard G. Rethore | 20,447 | — | 8,825 | |||||||||||
Jeffery S. Sharritts | — | — | 8,825 | |||||||||||
Brian L. Slobodow(2) | — | — | — | |||||||||||
Lydia W. Thomas | 33,025 | — | 8,825 | |||||||||||
Michael T. Tokarz | 33,025 | — | 8,825 | |||||||||||
Stephen C. Van Arsdell | — | — | 8,825 |
Option Awards | Stock Awards | ||||||||||
Name(1) | Number of Securities Underlying Options (#) | Number of Shares or Units of Stock That Have Not Vested (#) | |||||||||
Exercisable | Unexercisable | ||||||||||
Franklin | 65,796 | — | 6,612 | ||||||||
Hansen | 58,999 | — | 6,612 | ||||||||
Thomas | 79,724 | — | 6,612 | ||||||||
Kolb | 55,084 | — | 6,612 | ||||||||
O’Brien | 89,425 | — | 6,612 | ||||||||
Rethore | 33,025 | — | 6,612 | ||||||||
Tokarz | 89,425 | — | 6,612 |
Advisory Vote to Approve Executive Compensation | |||||
![]() | The Board recommends a |
DIRECTOR COMPENSATION TABLE |
Fees Earned or Paid in Cash ($) | Stock Awards ($)(2) | Total ($) | |||||||||||||||||||||
Name | Annual Retainer ($)(1) | Meeting Fees ($) | Other ($)(3) | Total ($) | |||||||||||||||||||
Shirley C. Franklin | 65,000 | 30,000 | 1,500 | 96,500 | 114,990 | 211,490 | |||||||||||||||||
Thomas J. Hansen | 65,000 | 28,500 | 1,500 | 95,000 | 114,990 | 209,990 | |||||||||||||||||
Jerry W. Kolb(4) | 28,111 | 21,000 | — | 49,111 | 114,990 | 164,101 | |||||||||||||||||
Mark J. O’Brien | 165,000 | 12,000 | — | 177,000 | 114,990 | 291,990 | |||||||||||||||||
Christine Ortiz | 65,000 | 34,500 | 1,500 | 101,000 | 114,990 | 215,990 | |||||||||||||||||
Bernard G. Rethore | 75,000 | 43,500 | — | 118,500 | 114,990 | 233,490 | |||||||||||||||||
Jeffery S. Sharritts | 65,000 | 39,000 | — | 104,000 | 114,990 | 218,990 | |||||||||||||||||
Brian L. Slobodow(5) | — | — | — | — | — | — | |||||||||||||||||
Lydia W. Thomas | 75,000 | 31,500 | 1,500 | 108,000 | 114,990 | 222,990 | |||||||||||||||||
Michael T. Tokarz | 80,000 | 34,500 | — | 114,500 | 114,990 | 229,490 | |||||||||||||||||
Stephen C. Van Arsdell | 80,000 | 39,000 | — | 119,000 | 114,990 | 233,990 |
Option Awards | Stock Awards | |||||||||||||
Number of Securities Underlying Options (#) | Number of Shares or Units of Stock That Have Not Vested (#) | |||||||||||||
Exercisable | Unexercisable | |||||||||||||
Shirley C. Franklin | — | — | 8,825 | |||||||||||
Thomas J. Hansen | 20,447 | — | 8,825 | |||||||||||
Jerry W. Kolb(1) | — | — | 8,825 | |||||||||||
Mark J. O’Brien | 33,025 | — | 8,825 | |||||||||||
Christine Ortiz | — | — | 8,825 | |||||||||||
Bernard G. Rethore | 20,447 | — | 8,825 | |||||||||||
Jeffery S. Sharritts | — | — | 8,825 | |||||||||||
Brian L. Slobodow(2) | — | — | — | |||||||||||
Lydia W. Thomas | 33,025 | — | 8,825 | |||||||||||
Michael T. Tokarz | 33,025 | — | 8,825 | |||||||||||
Stephen C. Van Arsdell | — | — | 8,825 |
Proposal Two | |||||
Advisory Vote to Approve Executive Compensation | |||||
![]() | The Board recommends a vote FOR this proposal. |
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President and Chief Executive Officer | Marietta Edmunds Zakas Executive Vice President and Chief Financial Officer | Steven S. Heinrichs Executive Vice President, Chief Legal and Compliance Officer and Secretary | Todd P. Helms Senior Vice President and Chief Human Resources Officer | Kenji Takeuchi Senior Vice President, Water Management Solutions |
![]() | We continued execution of our | ||||
![]() | We launched the Diversity, Equity and Inclusion Council. | ||||
![]() | We increased corporate efficiencies and reduced our geographic and environmental footprint with the consolidation of our facilities in Woodland, Washington; Hammond, Indiana; Aurora, Illinois; and Surrey, British Columbia into the recently acquired facility in Kimball, Tennessee. | ||||
![]() | We again increased our annual dividend, which is the seventh increase since 2014. | ||||
![]() | We experienced the second consecutive year of double-digit net sales growth and ended the year with a record backlog. | ||||
![]() | We published our second annual ESG Report, updating our ambitious goals and targets. |
![]() | Focused on Operational Investment and Efficiencies to Increase Long-Term Stockholder Value | ||||||||||||||
![]() | We GAAP performance measures. | ||||||||||||||
![]() | Dividend Benefits | ![]() ![]() | Stockholder Value | ||||||||||||
•We •We returned $36.5 million to | |||||||||||||||
![]() | We repurchased |
Company Results for Performance Evaluation Basis | |||||||||||||||||||||||||||||||||||
Company-Wide | Segment Performance (Water Management Solutions) | Return on Net Assets(3) (RONA) | Relative Total Shareholder Return(4) (rTSR) | ||||||||||||||||||||||||||||||||
Net Sales | Adjusted EBITDA(1) | Adjusted Working Capital (as a % of Net Sales(2) | Net Sales | Adjusted EBITDA(1) | |||||||||||||||||||||||||||||||
($ in millions) | % | ($ in millions) | % | Percentile | |||||||||||||||||||||||||||||||
2022 | 1,247.4 | 195.2 | 27.5 | 516.0 | 115.6 | 19.6 | 44.4 |
Adjusted Net Sales | Adjusted Operating Income from Continuing Operations(1) | Adjusted Income from Continuing Operations(2) | Return on Net Assets(3) | ||||
($ in millions) | ($ in millions) | ($ in millions) | (%) | ||||
2017 | 815.7 | 121.3 | 68.5 | 34.4 | |||
2016 | 800.6 | 116.7 | 57.3 | 34.0 |
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PERFORMANCE-BASED TOTAL TARGET COMPENSATION(1) | ||||||||||||
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![]() | We structure performance-based compensation to pay for performance. |
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“SAY-ON-PAY” SUPPORT | |||||||||||
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ü | WE DO | û | WE DON’T | |||||||||||
ü | Use incentives to substantially link NEO pay to Company performance | û | Re-price or exchange equity-based awards | |||||||||||
ü | Require executives and directors to maintain significant stock ownership levels | û | Permit hedging or pledging of Common Stock by directors or executives | |||||||||||
ü | Maintain a compensation clawback policy | û | Pay dividends on | |||||||||||
ü | Require a double trigger for equity award vesting upon a change-in-control | û | Provide excise tax gross-up benefits |
Competitiveness Compensation programs should be designed to target at the | Pay for Performance Where compensation for an executive is tied to the achievement of financial and strategic goals, actual results that exceed target levels should provide above-target payouts, and results that do not exceed threshold levels should not provide payouts. | ||||||
Responsibility A significant portion of an executive’s overall compensation should be tied to the achievement of financial performance goals. The portion of an executive’s target total compensation that is incentive based should increase as an executive’s responsibilities increase. | Stockholder Alignment Executives’ interests are more directly aligned with stockholders’ interests when compensation programs: •Emphasize both short- and long-term financial •Are significantly impacted by the value of Common •Require meaningful Common Stock ownership. |
Fiscal | |||||||
Armstrong World Industries, Inc. | |||||||
Badger Meter, Inc. | Hillenbrand, Inc. | ||||||
Chart Industries | IDEX Corporation | ||||||
Circor International Inc. | Itron, Inc. | ||||||
Crane Co. | Mueller Industries, Inc. | ||||||
Quanex Building Products Corporation | |||||||
Valmont Industries, Inc. | |||||||
Watts Water Technologies, Inc. | |||||||
Pay Element | Salary | Bonus | Options | RSUs | PRSUs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recipients | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All NEOs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of Grant | Generally reviewed every 12 months | Annually | Annually | Annually | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annually | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Form of Delivery | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash | Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Type of Performance | Short-term emphasis | Long-term emphasis | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Measures | — | Mix of financial results and EHS-related operational goals | Value of delivered shares based on stock price on date of exercise or lapse | Value of delivered shares based on stock price on vesting dates | Return on Net Assets ("RONA") achievement | Relative total shareholder return ("rTSR") | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Period / Vesting | Ongoing | 1 year | Generally vest annually over 3 years | Measured and earned annually and vest at the end of the 3-year award | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
cycle | Vest at the end of the 3-year award cycle | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
How Payout Determined | Predominantly tied to Peer Group data, with an element of Compensation Committee discretion | Predominantly formulaic (based on performance against goals), with an element of Compensation Committee discretion | Completion of required service period through each vesting date | Completion of required service period through each vesting date | Formulaic (based on performance against goals) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for specific performance periods | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Annual Salary Rate at September 30, 2022 ($) | Annual Salary Rate at September 30, 2021 ($) | Salary Increase (%) | |||||||||||
J. Scott Hall | 854,000 | 825,000 | 3.5 | |||||||||||
Marietta Edmunds Zakas | 454,564 | 437,081 | 4.0 | |||||||||||
Steven S. Heinrichs | 459,426 | 443,890 | 3.5 | |||||||||||
Todd P. Helms | 372,203 | 358,750 | 3.7 | |||||||||||
Kenji Takeuchi | 374,920 | 360,500 | 4.0 |
Name | Annual Salary Rate at September 30, 2017 ($) | Annual Salary Rate at September 30, 2016 ($) | ||||||
Gregory E. Hyland | 1,000,000 | 900,000 | ||||||
Scott Hall | 750,000 | N/A | ||||||
Evan L. Hart | 418,000 | 405,300 | ||||||
Keith L. Belknap | 443,500 | 430,500 | ||||||
Gregory E. Rogowski | 446,000 | 433,000 | ||||||
Marietta Edmunds Zakas | 357,000 | 341,900 |
Performance Targets and Results | |||||||||||
Results Required to Achieve Bonus ($ in millions, except for percentages) | 2017 Actual Results ($ in millions) | Actual 2017 Payout Factor (% of Target Bonus) unweighted | |||||||||
Weight (% of Target Bonus) | |||||||||||
Name | Metric | Threshold (0%) | Target (100%) | Maximum (200%) | |||||||
Gregory E. Hyland | Adjusted Income from Continuing Operations | 90 | 52.7 | 65.8 | 79.0 | 68.5 | 120.4 | ||||
EHS | 10 | — | — | — | — | 128.3 | |||||
Scott Hall | Adjusted Income from Continuing Operations | 90 | 52.7 | 65.8 | 79.0 | 68.5 | 120.4 | ||||
EHS | 10 | — | — | — | — | 128.3 | |||||
Evan L. Hart | Adjusted Income from Continuing Operations | 90 | 52.7 | 65.8 | 79.0 | 68.5 | 120.4 | ||||
EHS | 10 | — | — | — | — | 128.3 | |||||
Keith L. Belknap | Adjusted Income from Continuing Operations | 55 | 52.7 | 65.8 | 79.0 | 68.5 | 120.4 | ||||
Technologies Adjusted Operating Income (Loss) | 35 | (5.0 | ) | 0 | 5.0 | (9.7 | ) | 0 | |||
EHS | 10 | — | — | — | — | 75.0 | |||||
Gregory S. Rogowski | Infrastructure Adjusted Operating Income | 40 | 138.4 | 173.0 | 207.6 | 166.2 | 80.2 | ||||
Infrastructure Adjusted Net Sales | 25 | 715.7 | 753.0 | 790.6 | 729.6 | 37.1 | |||||
Adjusted Income from Continuing Operations | 25 | 52.7 | 65.8 | 79.0 | 68.5 | 120.4 | |||||
EHS | 10 | — | — | — | — | 137.0 | |||||
Marietta Edmunds Zakas | Adjusted Income from Continuing Operations | 90 | 52.7 | 65.8 | 79.0 | 68.5 | 120.4 | ||||
EHS | 10 | — | — | — | — | 128.3 |
2022 ANNUAL PERFORMANCE TARGETS AND RESULTS | ||||||||||||||||||||||||||||||||
Weighted Aggregate Actual % of Target for Ms. Zakas and Messrs. Hall, Heinrichs and Helms 89.3% | ||||||||||||||||||||||||||||||||
Metric | Weight (% of Target Bonus)( | Results Required to Achieve Bonus ($ in millions, except for percentages)(1) | Actual 2022 Payout Factor (% of Target Bonus) unweighted | |||||||||||||||||||||||||||||
Hall Zakas Heinrichs Helms | Takeuchi | Threshold (50%) | Target (100%) | Maximum (200%) | ||||||||||||||||||||||||||||
Adjusted EBITDA | 50.0% | 45.0% | ![]() | 60.6% | ||||||||||||||||||||||||||||
Net Sales | 25.0% | 20.0% | ![]() | 190.0% | ||||||||||||||||||||||||||||
Adjusted Working Capital as a % of Net Sales | 15.0% | 15.0% | ![]() | 76.8% | Weighted Aggregate Actual % of Target for Mr. Takeuchi 91.0% | |||||||||||||||||||||||||||
WMS Segment Net Sales(2) | — | 10.0% | ![]() | 142.0% | ||||||||||||||||||||||||||||
WMS Segment Adjusted EBITDA(2) | — | 10.0% | ![]() | —% | ||||||||||||||||||||||||||||
EHS(3) | 10.0% | — | — | — | — | —% |
At Target Performance | At Actual Performance | ||||||||||||||||
Name | % of Salary | Amount ($) | % of Target | Amount ($) | |||||||||||||
J. Scott Hall | 105 | % | 886,438 | 89.3 | % | 791,767 | |||||||||||
Marietta Edmunds Zakas | 70 | % | 314,070 | 89.3 | % | 280,528 | |||||||||||
Steven S. Heinrichs | 60 | % | 272,515 | 89.3 | % | 243,410 | |||||||||||
Todd P. Helms | 60 | % | 220,602 | 89.3 | % | 197,041 | |||||||||||
Kenji Takeuchi | 50 | % | 185,031 | 91.0 | % | 168,359 |
Name | At Target Performance | At Actual Performance | ||||
% of Salary | Amount ($) | % of Target | Amount ($) | |||
Gregory E. Hyland(1) | 100 | 301,736 | 121.2 | 365,674 | ||
Scott Hall(1) | 100 | 750,000 | 121.2 | 908,925 | ||
Evan L. Hart | 75 | 310,325 | 121.2 | 376,083 | ||
Keith L. Belknap | 70 | 307,417 | 73.7 | 226,627 | ||
Gregory E. Rogowski | 75 | 331,250 | 85.2 | 282,075 | ||
Marietta Edmunds Zakas | 60 | 211,180 | 121.2 | 255,929 |
PRSU PERFORMANCE MEASURES AND RESULTS FOR FISCAL 2022 | ||
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PRSU Settlements | |||||
Shares Earned | |||||
Name | Fiscal 2015(1) (#) | Fiscal 2016(1) (#) | Fiscal 2017 (#) | Total Shares Issued (#) | |
Gregory E. Hyland | 0 | 34,798 | 34,083 | 68,881 | |
Evan L. Hart | 0 | 9,795 | 9,594 | 19,389 | |
Keith L. Belknap | 0 | 6,959 | 6,816 | 13,775 | |
Gregory E. Rogowski | 0 | 9,395 | 9,202 | 18,597 | |
Marietta Edmunds Zakas | 0 | 4,697 | 4,601 | 9,298 |
Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | Fiscal 2024 | |||||||||||||
Fiscal 2020 | Vested 2020 RONA (3 Tranches) | ||||||||||||||||
Vested 2020 Market Unit Awards (1 Tranche) | |||||||||||||||||
Fiscal 2021 | Future Vesting of 2021 Market Unit Awards (1 Tranche) | ||||||||||||||||
Fiscal 2022 | Future Vesting of 2022 Market Unit Awards (1 Tranche) | ||||||||||||||||
PRSU SETTLEMENTS OF FISCAL 2020 AWARD | ||||||||||||||
Performance Periods | Total Issued Number of Shares | |||||||||||||
Fiscal 2020 | Fiscal 2021 | Fiscal 2022(1) | ||||||||||||
Name | Number of Shares Earned(2) | |||||||||||||
J. Scott Hall | 22,603 | 28,869 | 67,145 | 118,617 | ||||||||||
Marietta Edmunds Zakas | 6,672 | 8,522 | 19,822 | 35,016 | ||||||||||
Steven S. Heinrichs | 5,219 | 6,666 | 15,505 | 27,390 | ||||||||||
Todd P. Helms | 2,099 | 4,462 | 9,355 | 15,916 | ||||||||||
Kenji Takeuchi | 3,228 | 4,123 | 9,590 | 16,941 |
Position/Title | Target Ownership | ||||||||
Chief Executive Officer and President | ![]() | 6x base salary | |||||||
Executive Vice Presidents | ![]() | 3xbase salary | |||||||
Senior Vice Presidents | ![]() | 2x base salary | |||||||
Vice Presidents | ![]() | 1x base salary | |||||||
Non-Employee Directors | ![]() | 5x annual retainer |
Compensation and Human Resources Committee | |||||
MICHAEL T. | |||||
SHIRLEY C. | |||||
THOMAS J. HANSEN | |||||
JEFFERY S. SHARRITTS | |||||
STEPHEN C. VAN ARSDELL |
Name and Principal Position | Fiscal Year | Salary(1) ($) | Bonus ($) | Stock Awards(2) ($) | Option Awards(3) ($) | Non-Equity Incentive Plan Compensation(4) ($) | All Other Compensation(5) ($) | Total ($) | ||||||||||||||||||
J. Scott Hall President and Chief Executive Officer | 2022 | 844,227 | — | 2,470,487 | 643,742 | 791,767 | 56,873 | 4,807,096 | ||||||||||||||||||
2021 | 821,821 | — | 2,910,266 | 540,491 | 1,223,178 | 53,275 | 5,549,031 | |||||||||||||||||||
2020 | 777,786 | — | 2,509,534 | — | 946,456 | 52,990 | 4,286,766 | |||||||||||||||||||
Marietta Edmunds Zakas Executive Vice President and Chief Financial Officer | 2022 | 448,672 | — | 642,729 | 163,879 | 280,528 | 54,270 | 1,590,078 | ||||||||||||||||||
2021 | 432,791 | — | 816,844 | 147,965 | 443,070 | 46,968 | 1,887,638 | |||||||||||||||||||
2020 | 404,692 | — | 755,866 | — | 344,717 | 49,395 | 1,554,671 | |||||||||||||||||||
Steven S. Heinrichs Executive Vice President, Chief Legal and Compliance Officer and Secretary | 2022 | 454,191 | — | 502,452 | 128,111 | 243,410 | 46,322 | 1,374,485 | ||||||||||||||||||
2021 | 440,241 | — | 642,337 | 116,232 | 386,312 | 43,816 | 1,628,938 | |||||||||||||||||||
2020 | 413,001 | — | 521,697 | — | 301,538 | 36,975 | 1,273,211 | |||||||||||||||||||
Todd P. Helms Senior Vice President and Chief Human Resources Officer | 2022 | 367,670 | — | 349,316 | 89,677 | 197,041 | 29,505 | 1,033,209 | ||||||||||||||||||
2021 | 355,801 | — | 360,161 | 81,362 | 312,216 | 31,484 | 1,141,023 | |||||||||||||||||||
2020 | — | — | — | — | — | — | — | |||||||||||||||||||
Kenji Takeuchi Senior Vice President, Water Management Solutions | 2022 | 370,061 | — | 346,808 | 90,120 | 168,359 | 19,507 | 994,855 | ||||||||||||||||||
2021 | 356,962 | — | 311,731 | 69,732 | 234,925 | 19,466 | 992,816 | |||||||||||||||||||
2020 | — | — | — | — | — | — | — |
Name and Principal Position(1) | Fiscal Year | Salary(2) ($) | Bonus(3) ($) | Stock Awards(4) ($) | Non-Equity Incentive Plan Compensation(5) ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings(6) ($) | All Other Compensation(7) ($) | Total ($) | |||||||||||||
Gregory E. Hyland Executive Chairman, Former President and Chief Executive Officer | 2017 | 968,403 | — | 2,256,468 | 365,674 | 19,754 | 49,624 | 3,659,923 | |||||||||||||
2016 | 900,000 | 27,000 | 2,020,011 | 1,160,658 | 17,669 | 53,791 | 4,179,129 | ||||||||||||||
2015 | 900,000 | 27,000 | 2,248,099 | 280,485 | 19,044 | 51,122 | 3,525,750 | ||||||||||||||
Scott Hall President and Chief Executive Officer | 2017 | 518,229 | — | 1,657,694 | 908,925 | — | 108,195 | 3,193,043 | |||||||||||||
Evan L. Hart Senior Vice President and Chief Financial Officer | 2017 | 413,767 | — | 641,505 | 376,083 | — | 32,035 | 1,463,390 | |||||||||||||
2016 | 401,367 | — | 573,278 | 388,208 | — | 31,801 | 1,394,654 | ||||||||||||||
2015 | 389,673 | — | 652,443 | 96,560 | — | 31,769 | 1,170,445 | ||||||||||||||
Keith L. Belknap Executive Vice President, Business Development, General Counsel and Chief Compliance Officer | 2017 | 439,167 | — | 541,499 | 226,627 | — | 40,295 | 1,247,588 | |||||||||||||
2016 | 427,000 | — | 470,670 | 302,454 | — | 37,198 | 1,237,322 | ||||||||||||||
2015 | 385,760 | — | 703,181 | 89,218 | — | 38,787 | 1,216,946 | ||||||||||||||
Gregory S. Rogowski Executive Vice President, Sales and Marketing | 2017 | 441,667 | — | 632,914 | 282,075 | — | 37,372 | 1,394,028 | |||||||||||||
2016 | 429,500 | — | 552,069 | 389,614 | — | 37,226 | 1,408,409 | ||||||||||||||
2015 | 418,382 | — | 631,719 | 196,283 | — | 34,005 | 1,280,389 | ||||||||||||||
Marietta Edmunds Zakas | 2017 | 351,967 | 60,000 | 393,623 | 255,929 | — | 36,883 | 1,098,402 | |||||||||||||
Executive Vice President, Strategy, Corporate Development and Communications | 2016 | 338,567 | 145,000 | 271,111 | 261,973 | — | 36,612 | 1,053,263 | |||||||||||||
(2)“Stock Awards” comprise RSUs, Market Units and RONA Units. All RSUs and Market Units are granted on the date of award. RONA Units are granted annually in three equal tranches, beginning on the date of award. For fiscal 2022, the Stock Awards amounts include the aggregate grant date fair values of RSUs and Market Units granted in fiscal 2022 and the third tranche of RONA Units awarded in fiscal 2020 for the fiscal 2022 performance period. The dollar amounts shown for Stock Awards represent the aggregate grant date fair values calculated in accordance with ASC 718, Stock Compensation. See “Compensation Discussion and Analysis — Compensation Elements — Long-Term Equity-Based Compensation” for more information. The grant date fair value of the fiscal 2020, fiscal 2021 and fiscal 2022 Market Units was $14.94, $15.39 and $15.76, respectively. (3)“Option Awards” comprise stock options. All stock amounts for the awards represent the grant date fair value of stock options granted under the Stock Plan to each of the NEOs, calculated in accordance with ASC Topic 718. For more information regarding how the Company calculated these amounts, see the audited financial statements contained in our fiscal 2022 Form 10-K. The calculated compensation expense of the option awards recognized for financial reporting purposes will vary from the actual amount ultimately realized by the NEOs due to stock price fluctuations and timing factors related to the NEO’s realization of value from the option. To see the value actually received upon exercise of options by the NEOs in 2022, refer to the 2022 Option Exercises and Stock Vested table. Additional information on all outstanding option awards is reflected in the 2022 Outstanding Equity Awards table and the Grant of Plan-Based Awards |
Name | Vehicle Allowance ($) | Financial Planning(1) ($) | Contributions to 401(k) Plans ($) | Life and Long-Term Disability Insurance ($) | Other(2) ($) | Total ($) | ||||||||||||||
J. Scott Hall | 24,000 | — | 15,250 | 17,623 | 56,873 | |||||||||||||||
Marietta Edmunds Zakas | 18,000 | 7,500 | 15,079 | 10,341 | 3,350 | 54,270 | ||||||||||||||
Steven S. Heinrichs | 18,000 | 1,320 | 15,250 | 8,591 | 3,161 | 46,322 | ||||||||||||||
Todd P. Helms | — | 7,500 | 14,835 | 7,170 | — | 29,505 | ||||||||||||||
Kenji Takeuchi | — | — | 14,874 | 4,633 | 19,507 |
Name | Vehicle Allowance or Use of Leased Vehicle ($) | Financial Planning (1) ($) | Contributions to 401(k) Plans ($) | Life and Long-Term Disability Insurance ($) | Other(2) ($) | Total ($) | ||||||
Gregory E. Hyland | 14,000 | 2,825 | 10,800 | 18,999 | 3,000 | 49,624 | ||||||
Scott Hall | 17,000 | — | 10,800 | 3,739 | 76,656 | 108,195 | ||||||
Evan L. Hart | 18,000 | — | 10,800 | 3,235 | — | 32,035 | ||||||
Keith L. Belknap | 18,000 | 2,100 | 10,800 | 6,395 | 3,000 | 40,295 | ||||||
Gregory S. Rogowski | 18,000 | — | 10,800 | 5,524 | 3,048 | 37,372 | ||||||
Marietta Edmunds Zakas | 14,400 | 7,500 | 10,800 | 4,183 | — | 36,883 |
Fiscal 2017 Grants of Plan-Based Awards Table | |||||||||||||||||
Estimated Possible Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Issuance of Shares Under Equity Incentive Plans (2) | All Other Stock-Based Awards (#) (3) | Grant Date Fair Value of Stock-Based Awards ($) (4) | ||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||
Gregory E. Hyland | — | 301,736 | 603,472 | ||||||||||||||
11/29/2016 | 75,414 | 999,990 | |||||||||||||||
11/29/2016 | (5) | 12,569 | 25,138 | 50,276 | 333,330 | ||||||||||||
12/1/2015 | (5) | 17,768 | 35,536 | 71,072 | 471,207 | ||||||||||||
12/2/2014 | (5) | 17,041 | 34,083 | 68,166 | 451,941 | ||||||||||||
Scott Hall | — | 750,000 | 1,500,000 | ||||||||||||||
3/29/2017 | 56,069 | 657,689 | |||||||||||||||
1/23/2017 | 57,034 | 749,997 | |||||||||||||||
1/23/2017 | (5) | 9,506 | 19,012 | 38,024 | 250,008 | ||||||||||||
Evan L. Hart | — | 310,325 | 620,650 | ||||||||||||||
11/29/2016 | 21,493 | 284,997 | |||||||||||||||
11/29/2016 | (5) | 3,582 | 7,164 | 14,328 | 94,995 | ||||||||||||
12/1/2015 | (5) | 5,064 | 10,128 | 20,256 | 134,297 | ||||||||||||
12/2/2014 | (5) | 4,797 | 9,594 | 19,188 | 127,216 | ||||||||||||
Keith L. Belknap | — | 307,417 | 614,834 | ||||||||||||||
11/29/2016 | 18,853 | 249,991 | |||||||||||||||
11/29/2016 | (5) | 3,142 | 6,284 | 12,568 | 83,326 | ||||||||||||
12/1/2015 | (5) | 4,442 | 8,884 | 17,768 | 117,802 | ||||||||||||
12/2/2014 | (5) | 3,408 | 6,816 | 13,632 | 90,380 | ||||||||||||
Gregory S. Rogowski | — | 331,250 | 662,500 | ||||||||||||||
11/29/2016 | 21,568 | 285,992 | |||||||||||||||
11/29/2016 | (5) | 3,594 | 7,189 | 14,378 | 95,326 | ||||||||||||
12/1/2015 | (5) | 4,886 | 9,772 | 19,544 | 129,577 | ||||||||||||
12/2/2014 | (5) | 4,601 | 9,202 | 18,404 | 122,019 | ||||||||||||
Marietta Edmunds Zakas | — | 211,180 | 422,360 | ||||||||||||||
11/29/2016 | 15,082 | 199,987 | |||||||||||||||
11/29/2016 | (5) | 2,513 | 5,027 | 10,054 | 66,658 | ||||||||||||
12/1/2015 | (5) | 2,487 | 4,975 | 9,950 | 65,969 | ||||||||||||
12/2/2014 | (5) | 2,300 | 4,601 | 9,202 | 61,009 |
Estimated Possible Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Issuance of Shares Under Equity Incentive Plans | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh)(6) | All Other Stock-Based Awards (#) | Grant Date Fair Value of Stock-Based Awards ($)(7) | ||||||||||||||||||||||||||||||||||||
Name | Award Date | Minimum ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||||||||||||||||||||||
J. Scott Hall | (1) | — | 886,438 | 1,772,877 | |||||||||||||||||||||||||||||||||||||
11/30/2021 | (2) | 47,193 | 643,713 | ||||||||||||||||||||||||||||||||||||||
11/30/2021 | (3) | 47,196 | 94,391 | 188,782 | 1,487,602 | ||||||||||||||||||||||||||||||||||||
11/30/2021 | (4) | 187,680 | 13.64 | 643,742 | |||||||||||||||||||||||||||||||||||||
12/3/2019 | (5) | 12,433 | 24,866 | 49,732 | 339,172 | ||||||||||||||||||||||||||||||||||||
Marietta Edmunds Zakas | (1) | — | 314,070 | 628,141 | |||||||||||||||||||||||||||||||||||||
11/30/2021 | (2) | 12,015 | 163,885 | ||||||||||||||||||||||||||||||||||||||
11/30/2021 | (3) | 12,015 | 24,030 | 48,060 | 378,713 | ||||||||||||||||||||||||||||||||||||
11/30/2021 | (4) | 47,778 | 13.64 | 163,879 | |||||||||||||||||||||||||||||||||||||
12/3/2019 | (5) | 3,671 | 7,341 | 14,682 | 100,131 | ||||||||||||||||||||||||||||||||||||
Steven S. Heinrichs | (1) | — | 272,515 | 545,029 | |||||||||||||||||||||||||||||||||||||
11/30/2021 | (2) | 9,390 | 128,080 | ||||||||||||||||||||||||||||||||||||||
11/30/2021 | (3) | 9,393 | 18,785 | 37,570 | 296,052 | ||||||||||||||||||||||||||||||||||||
11/30/2021 | (4) | 37,350 | 13.64 | 128,111 | |||||||||||||||||||||||||||||||||||||
12/3/2019 | (5) | 2,871 | 5,742 | 11,484 | 78,321 |
Estimated Possible Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Issuance of Shares Under Equity Incentive Plans | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh)(6) | All Other Stock-Based Awards (#) | Grant Date Fair Value of Stock-Based Awards ($)(7) | ||||||||||||||||||||||||||||||||||||
Name | Award Date | Minimum ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||||||||||||||||||||||
Todd P. Helms | (1) | — | 220,602 | 441,204 | |||||||||||||||||||||||||||||||||||||
11/30/2021 | (2) | 6,573 | 89,656 | ||||||||||||||||||||||||||||||||||||||
11/30/2021 | (3) | 6,575 | 13,149 | 26,298 | 207,228 | ||||||||||||||||||||||||||||||||||||
11/30/2021 | (4) | 26,145 | 13.64 | 89,677 | |||||||||||||||||||||||||||||||||||||
2/24/2020 | (8) | 1,922 | 3,844 | 7,688 | 52,432 | ||||||||||||||||||||||||||||||||||||
Kenji Takeuchi | (1) | — | 185,031 | 370,061 | |||||||||||||||||||||||||||||||||||||
11/30/2021 | (2) | 6,606 | 90,106 | ||||||||||||||||||||||||||||||||||||||
11/30/2021 | (3) | 6,607 | 13,214 | 26,428 | 208,253 | ||||||||||||||||||||||||||||||||||||
11/30/2021 | (4) | 26,274 | 13.64 | 90,120 | |||||||||||||||||||||||||||||||||||||
12/3/2019 | (5) | 1,776 | 3,552 | 7,104 | 48,449 |
Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||||
Number of Securities Underlying Options (#) | Option Exercise Price ($)(1) | Option Expiration Date | Number of RSUs That Have Not Vested (#)(2) | Market Value of RSUs That Have Not Vested ($)(3) | Number of Performance Units That Have Not Vested (#)(4) | Market Value of Performance Units That Have Not Vested ($)(3) | |||||||||||||||||||||||||||||
Name | Award Date | Exercisable | Unexercisable | ||||||||||||||||||||||||||||||||
J. Scott Hall | 12/03/19 | (5) | 18,650 | 191,536 | |||||||||||||||||||||||||||||||
12/02/20 | (6) | 32,672 | 335,541 | ||||||||||||||||||||||||||||||||
12/02/20 | (7) | 98,018 | 1,006,645 | ||||||||||||||||||||||||||||||||
12/02/20 | (8) | 59,070 | 118,140 | 11.86 | 12/02/30 | ||||||||||||||||||||||||||||||
11/30/21 | (9) | 47,193 | 484,672 | ||||||||||||||||||||||||||||||||
11/30/21 | (10) | 94,391 | 969,396 | ||||||||||||||||||||||||||||||||
11/30/21 | (11) | — | 187,680 | 13.64 | 11/29/31 | ||||||||||||||||||||||||||||||
Marietta Edmunds Zakas | 12/03/19 | (5) | 5,506 | 56,547 | |||||||||||||||||||||||||||||||
12/02/20 | (6) | 8,944 | 91,855 | ||||||||||||||||||||||||||||||||
12/02/20 | (7) | 26,834 | 275,585 | ||||||||||||||||||||||||||||||||
12/02/20 | (8) | 16,171 | 32,342 | 11.86 | 12/02/30 | ||||||||||||||||||||||||||||||
11/30/21 | (9) | 12,015 | 123,394 | ||||||||||||||||||||||||||||||||
11/30/21 | (10) | 24,030 | 246,788 | ||||||||||||||||||||||||||||||||
11/30/21 | (11) | — | 47,778 | 13.64 | 11/29/31 | ||||||||||||||||||||||||||||||
Steven S. Heinrichs | 12/03/19 | (5) | 4,307 | 44,233 | |||||||||||||||||||||||||||||||
12/02/20 | (6) | 7,026 | 72,157 | ||||||||||||||||||||||||||||||||
12/02/20 | (7) | 21,079 | 216,481 | ||||||||||||||||||||||||||||||||
12/02/20 | (8) | 12,703 | 25,406 | 11.86 | 12/02/30 | ||||||||||||||||||||||||||||||
11/30/21 | (9) | 9,390 | 96,435 | ||||||||||||||||||||||||||||||||
11/30/21 | (10) | 18,785 | 192,922 | ||||||||||||||||||||||||||||||||
11/30/21 | (11) | — | 37,350 | 13.64 | 11/29/31 | ||||||||||||||||||||||||||||||
Todd P. Helms | 02/24/20 | (5) | 2,883 | 29,608 | |||||||||||||||||||||||||||||||
12/02/20 | (6) | 4,918 | 50,508 | ||||||||||||||||||||||||||||||||
12/02/20 | (7) | 14,755 | 151,534 | ||||||||||||||||||||||||||||||||
12/02/20 | (8) | 8,892 | 17,784 | 11.86 | 12/02/30 | ||||||||||||||||||||||||||||||
11/30/21 | (9) | 6,573 | 67,505 | ||||||||||||||||||||||||||||||||
11/30/21 | (10) | 13,149 | 135,040 | ||||||||||||||||||||||||||||||||
11/30/21 | (11) | — | 26,145 | 13.64 | 11/29/31 | ||||||||||||||||||||||||||||||
Kenji Takeuchi | 12/03/19 | (5) | 2,664 | 27,359 | |||||||||||||||||||||||||||||||
12/02/20 | (6) | 4,214 | 43,278 | ||||||||||||||||||||||||||||||||
12/02/20 | (7) | 12,647 | 129,885 | ||||||||||||||||||||||||||||||||
12/02/20 | (8) | 7,621 | 15,242 | 11.86 | 12/02/30 | ||||||||||||||||||||||||||||||
11/30/21 | (9) | 6,606 | 67,844 | ||||||||||||||||||||||||||||||||
11/30/21 | (10) | 13,214 | 135,708 | ||||||||||||||||||||||||||||||||
11/30/21 | (11) | — | 26,274 | 13.64 | 11/29/31 |
Name | Option Awards | Stock Awards | ||||||||||||||||
Grant Date | Number of Securities Underlying Options (#) | Option Exercise Price ($) (1) | Option Expiration Date | Number of Units of Stock That Have Not Vested (#) (2) | Market Value of Units of Stock That Have Not Vested ($) (3) | Number of Performance Shares That Have Not Vested (#) | Market Value of Performance Shares That Have Not Vested ($) (3) | |||||||||||
Exercisable | Unexercisable | |||||||||||||||||
Gregory E. Hyland (6) | 11/29/07 | 226,757 | — | 10.66 | 11/29/17 | — | — | — | — | |||||||||
12/02/08 | 343,155 | — | 5.49 | 12/02/18 | — | — | — | — | ||||||||||
12/01/09 | 154,427 | — | 5.05 | 12/01/19 | — | — | — | — | ||||||||||
12/01/15 | (4) | — | — | 35,536 | 454,861 | |||||||||||||
11/29/16 | (5) | 75,414 | 965,299 | 50,276 | 643,533 | |||||||||||||
Scott Hall | 01/23/17 | (5) | 57,034 | 730,035 | 57,034 | 730,035 | ||||||||||||
03/29/17 | 56,069 | 717,683 | ||||||||||||||||
Evan L. Hart | 11/29/07 | 10,459 | — | 10.66 | 11/29/17 | — | — | — | — | |||||||||
07/31/08 | 24,752 | — | 9.10 | 07/31/18 | — | — | — | — | ||||||||||
12/02/08 | 66,539 | — | 5.49 | 12/02/18 | — | — | — | — | ||||||||||
12/01/09 | 84,615 | — | 5.05 | 12/01/19 | — | — | — | — | ||||||||||
11/30/10 | 84,615 | — | 3.52 | 11/30/20 | — | — | — | — | ||||||||||
11/29/11 | 71,942 | — | 2.03 | 11/29/21 | — | — | — | — | ||||||||||
12/02/14 | 9,594 | 122,803 | — | — | ||||||||||||||
12/01/15 | (4) | 20,255 | 259,264 | 30,595 | 391,616 | |||||||||||||
11/29/16 | (5) | 21,493 | 275,110 | 21,493 | 275,110 | |||||||||||||
Keith L. Belknap | 04/02/12 | 22,335 | — | 3.54 | 04/02/22 | — | — | — | — | |||||||||
12/02/14 | 6,816 | 87,245 | — | — | ||||||||||||||
07/27/15 | 9,502 | 121,626 | — | — | ||||||||||||||
12/01/15 | (4) | 17,768 | 227,430 | 26,838 | 343,526 | |||||||||||||
11/29/16 | (5) | 18,853 | 241,318 | 18,853 | 241,318 | |||||||||||||
Gregory S. Rogowski | 12/01/09 | 85,839 | — | 5.05 | 12/01/19 | — | — | — | — | |||||||||
11/30/10 | 85,839 | — | 3.52 | 11/30/20 | — | — | — | — | ||||||||||
11/29/11 | 70,684 | — | 2.03 | 11/29/21 | — | — | — | — | ||||||||||
12/02/14 | 9,202 | 117,786 | — | — | ||||||||||||||
12/01/15 | (4) | 19,544 | 250,163 | 29,522 | 377,882 | |||||||||||||
11/29/16 | (5) | 21,568 | 276,070 | 21,568 | 276,070 | |||||||||||||
Marietta Edmunds Zakas | 11/29/07 | 22,676 | — | 10.66 | 11/29/17 | — | — | — | — | |||||||||
12/02/08 | 38,022 | — | 5.49 | 12/02/18 | — | — | — | — | ||||||||||
12/01/09 | 34,965 | — | 5.05 | 12/01/19 | — | — | — | — | ||||||||||
11/30/10 | 34,965 | — | 3.52 | 11/30/20 | — | — | — | — | ||||||||||
11/29/11 | 25,260 | — | 2.03 | 11/29/21 | — | — | — | — | ||||||||||
12/02/14 | 4,601 | 58,893 | — | — | ||||||||||||||
12/01/15 | (4) | 9,950 | 127,360 | 15,029 | 192,371 | |||||||||||||
11/29/16 | (5) | 15,082 | 193,050 | 15,082 | 193,050 |
Option Awards | RSU Awards | PRSU Awards(3) | ||||||||||||||||||||||||
Name | Number of Shares Acquired on Exercise | Value Realized on Exercise(1) ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting(2) ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting(2) ($) | ||||||||||||||||||||
J. Scott Hall | — | — | 53,979 | 751,589 | 118,617 | 1,218,197 | ||||||||||||||||||||
Marietta Edmunds Zakas | — | — | 15,676 | 218,276 | 35,016 | 359,614 | ||||||||||||||||||||
Steven S. Heinrichs | — | — | 12,331 | 171,705 | 27,390 | 281,295 | ||||||||||||||||||||
Todd P. Helms | — | — | 25,110 | 314,220 | 15,916 | 163,457 | ||||||||||||||||||||
Kenji Takeuchi | — | — | 4,771 | 66,140 | 16,941 | 173,984 |
Option Awards | Stock Awards | |||||||
Name | Number of Shares Acquired on Exercise | Value Realized on Exercise(1) ($) | Number of Shares Acquired on Vesting | Value Realized on Vesting(2) ($) | ||||
Gregory E. Hyland | 500,000 | 4,685,686 | 108,743 | 1,437,163 | ||||
Scott Hall | — | — | — | — | ||||
Evan L. Hart | — | — | 30,735 | 406,205 | ||||
Keith L. Belknap | — | — | 33,027 | 420,183 | ||||
Gregory S. Rogowski | — | — | 29,538 | 390,388 | ||||
Marietta Edmunds Zakas | — | — | 13,977 | 184,755 |
(1)Calculated by subtracting the exercise price |
Name | Base Salary Rate(1) ($) | Annual Target Bonus as Percent of Base Salary(2) (%) | Monthly Car Allowance ($) | Annual Vacation | Severance Benefits as Percent of Salary(3) (%) | ||||||||||||
J. Scott Hall | 854,000 | 105 | 2,000 | 4 weeks | 300.0 | ||||||||||||
Marietta Edmunds Zakas | 454,564 | 70 | 1,500 | 4 weeks | 262.5 | ||||||||||||
Steven S. Heinrichs | 459,426 | 60 | 1,500 | 4 weeks | 262.5 | ||||||||||||
Todd P. Helms(4) | 372,203 | 60 | N/A | 4 weeks | 100.0 | ||||||||||||
Kenji Takeuchi(4) | 374,920 | 50 | N/A | 4 weeks | 100.0 |
Name | Base Salary Rate(1) ($) | Annual Target Bonus as Percent of Base Salary(2) (%) | Monthly Car Allowance ($) | Annual Vacation | Severance Benefits as Percent of Salary(3) (%) | ||
Gregory E. Hyland(4) | 1,000,000 | N/A | — | 4 weeks | N/A | ||
Scott Hall | 750,000 | 100 | 2,000 | 4 weeks | 300.0 | ||
Evan L. Hart | 418,000 | 75 | 1,500 | 4 weeks | 262.5 | ||
Keith L. Belknap | 443,500 | 70 | 1,500 | 4 weeks | 240.0 | ||
Gregory S. Rogowski | 446,000 | 75 | 1,500 | 4 weeks | 262.5 | ||
Marietta Edmunds Zakas | 357,000 | 60 | 1,200 | 4 weeks | 225.0 |
(1)Salaries are reviewed annually. Amounts shown represent annual salary rates as |
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE-IN-CONTROL TABLE | ||||||||||||||||||||||||||||||||
Name | Cash Severance ($) | Bonus Earned as of Event Date(1) ($) | Vesting of Unvested Long-Term Awards(2) ($) | Health, Welfare and Other Benefits Continuation(3) ($) | Outplacement(4) ($) | Total ($) | ||||||||||||||||||||||||||
J. Scott Hall | A | 2,627,692 | (5) | 791,767 | — | 45,008 | 25,000 | 3,489,467 | ||||||||||||||||||||||||
B | 3,546,568 | (6) | 791,767 | 2,987,789 | 90,547 | 298,900 | 7,715,571 | |||||||||||||||||||||||||
C | — | — | 2,987,789 | — | — | 2,987,789 | ||||||||||||||||||||||||||
Marietta Edmunds Zakas | A | 1,228,197 | (5) | 280,528 | — | 60,094 | 25,000 | 1,593,819 | ||||||||||||||||||||||||
B | 1,575,684 | (6) | 280,528 | 794,169 | 133,804 | 159,097 | 2,943,282 | |||||||||||||||||||||||||
C | — | — | 794,169 | — | — | 794,169 | ||||||||||||||||||||||||||
Steven S. Heinrichs | A | 1,241,333 | (5) | 243,410 | — | 1,697 | 25,000 | 1,511,440 | ||||||||||||||||||||||||
B | 1,506,334 | (6) | 243,410 | 622,228 | 130,690 | 160,799 | 2,663,461 | |||||||||||||||||||||||||
C | — | — | 622,228 | — | — | 622,228 | ||||||||||||||||||||||||||
Todd P. Helms | A | 597,875 | (5) | 197,041 | — | 25,900 | 25,000 | 845,816 | ||||||||||||||||||||||||
B | 621,436 | (6) | 197,041 | 434,195 | 25,900 | 25,000 | 1,303,572 | |||||||||||||||||||||||||
C | — | — | 434,195 | — | — | 434,195 | ||||||||||||||||||||||||||
Kenji Takeuchi | A | 572,119 | (5) | 168,359 | — | 24,256 | 25,000 | 789,734 | ||||||||||||||||||||||||
B | 588,791 | (6) | 168,359 | 404,073 | 24,256 | 25,000 | 1,210,479 | |||||||||||||||||||||||||
C | — | — | 404,073 | — | — | 404,073 |
Potential Payments Upon Termination or Change-in-Control Table | |||||||||||||||||
Name | Cash Severance ($) | Bonus Earned as of Event Date(1) ($) | Vesting of Unvested Long-Term Awards(2) ($) | Health, Welfare and Other Benefits Continuation(3) ($) | Outplacement(4) ($) | Sec 280G Excise Tax and Related Gross-Up(5) ($) | Total ($) | ||||||||||
Scott Hall | A | 2,307,692 | (6) | 908,925 | — | 27,276 | 25,000 | 0 | 3,268,893 | ||||||||
B | 3,057,692 | (7) | 908,925 | 2,177,753 | 36,368 | 262,500 | 0 | 6,443,238 | |||||||||
C | — | — | 1,691,059 | — | — | 0 | 1,691,059 | ||||||||||
Evan L. Hart | A | 1,129,404 | (6) | 376,083 | — | 12,867 | 25,000 | 0 | 1,543,354 | ||||||||
B | 1,404,457 | (7) | 376,083 | 1,323,927 | 17,156 | 146,300 | 0 | 3,267,923 | |||||||||
C | — | — | 1,010,881 | — | — | 0 | 1,010,881 | ||||||||||
Keith L. Belknap | A | 1,098,515 | (6) | 226,627 | — | 30,798 | 25,000 | 0 | 1,380,940 | ||||||||
B | 1,238,441 | (7) | 226,627 | 1,262,474 | 41,064 | 155,225 | 0 | 2,923,831 | |||||||||
C | — | — | 987,881 | — | — | 0 | 987,881 | ||||||||||
Gregory S. Rogowski | A | 1,205,058 | (6) | 282,075 | — | 7,803 | 25,000 | 0 | 1,519,936 | ||||||||
B | 1,526,060 | (7) | 282,075 | 1,297,971 | 10,405 | 156,100 | 0 | 3,272,611 | |||||||||
C | — | — | 988,842 | — | — | 0 | 988,842 | ||||||||||
Marietta Edmunds Zakas | A | 830,712 | (6) | 255,929 | — | 26,093 | 25,000 | 0 | 1,137,734 | ||||||||
B | 1,082,756 | (7) | 255,929 | 764,724 | 34,791 | 124,950 | 0 | 2,263,150 | |||||||||
C | — | — | 572,344 | — | — | 0 | 572,344 |
![]() | The Board recommends voting on executive compensation ANNUALLY. |
Ratification of the Appointment of Our Independent Registered Public Accounting Firm for Fiscal 2023 | |||||
![]() | The |
2022 | 2021 | |||||||
Audit fees(1) | $ | 2.6 | $ | 3.0 | ||||
Audit-related fees | — | — | ||||||
Tax fees | 0.1 | — | ||||||
Total fees | $ | 2.7 | $ | 3.0 |
STEPHEN C. VAN ARSDELL, CHAIR | |||||
BERNARD G. RETHORE | |||||
Name and Address of Beneficial Owner(1) | Aggregate Number of Shares of Common Stock Beneficially Owned(2) | Percent of Outstanding Common Stock | |||||||||
Shirley C. Franklin Director | 65,601 | (3) | * | ||||||||
Scott Hall Director, President and Chief Executive Officer | 632,353 | * | |||||||||
Thomas J. Hansen Director | 111,360 | (3) | * | ||||||||
Mark J. O’Brien Non-Executive Chair | 200,668 | (3) | * | ||||||||
Christine Ortiz Director | 35,232 | (3) | * | ||||||||
Bernard G. Rethore Director | 196,832 | (3) | * | ||||||||
Jeffery S. Sharritts Director | 15,301 | (3) | * | ||||||||
Brian L. Slobodow Director | — | (3) | |||||||||
Lydia W. Thomas Director | 144,890 | (3) | * | ||||||||
Michael T. Tokarz Director | 405,771 | (3) | * | ||||||||
Stephen C. Van Arsdell Director | 62,336 | (3) | * | ||||||||
Marietta Edmunds Zakas Executive Vice President and Chief Financial Officer | 447,004 | * | |||||||||
Steven S. Heinrichs Executive Vice President, Chief Legal and Compliance Officer and Secretary | 120,815 | * | |||||||||
Todd P. Helms Senior Vice President and Chief Human Resources Officer | 64,582 | * | |||||||||
Kenji Takeuchi Senior Vice President, Water Management Solutions | 51,698 | * | |||||||||
All directors and executive officers as a group (19 individuals) | 2,687,571 | 1.7 | % | ||||||||
The Vanguard Group, Inc. 100 Vanguard Boulevard, Malvern, PA 19355 | 14,378,750 | (4) | 9.2 | % | |||||||
Impax Asset Management Group plc, et al. 7th Floor, 30 Panton Street, London, SW1Y 4AJ | 12,768,256 | (5) | 8.2 | % |
Name and Address of Beneficial Owner (1) | Aggregate Number of Shares of Common Stock Beneficially Owned (2) | Percent of Outstanding Common Stock | |||
Shirley C. Franklin, Director | 119,965 | (3) | * | ||
Scott Hall, President and Chief Executive Officer | 75,081 | (4) | * | ||
Thomas J. Hansen, Director | 106,972 | (3) | * | ||
Gregory E. Hyland, Executive Chairman | 1,600,501 | (5) | 1.0 | % | |
Jerry W. Kolb, Director | 159,777 | (3) | * | ||
Mark J. O’Brien, Director | 176,566 | (3) | * | ||
Bernard G. Rethore, Director | 146,470 | (3) | * | ||
Lydia W. Thomas, Director | 161,227 | (3) | * | ||
Michael T. Tokarz, Director | 520,276 | (3) | * | ||
Evan L. Hart, Senior Vice President and Chief Financial Officer | 271,436 | * | |||
Keith L. Belknap, Executive Vice President, Business Development, General Counsel and Chief Compliance Officer | 207,920 | * | |||
Gregory S. Rogowski, Executive Vice President, Sales and Marketing | 538,195 | * | |||
Marietta Edmunds Zakas Executive Vice President, Strategy, Corporate Development and Communications | 380,876 | * | |||
All directors and executive officers as a group (16 individuals) | 4,827,957 | 3.0 | % | ||
Vanguard Group Inc. PO Box 2600, V26, Valley Forge, PA 19482-2600 | 11,632,394 | (6) | 7.3 | % | |
BlackRock, Inc. 55 East 52nd Street, New York, NY 10055 | 10,465,831 | (7) | 6.6 | % | |
EARNEST Partners, LLC 1180 Peachtree Street, NE, Suite 2300, Atlanta, GA 30309 | 8,136,500 | (8) | 5.1 | % |
Name and Address of Beneficial Owner(1) | Aggregate Number of Shares of Common Stock Beneficially Owned(2) | Percent of Outstanding Common Stock | |||||||||
BlackRock, Inc. 55 East 52nd Street, New York, NY 10055 | 12,706,693 | (6) | 8.1 | % | |||||||
Nuance Investments, LLC 4900 Main Street, Suite 220, Kansas City, MO 64112 | 11,428,817 | (7) | 7.3 | % | |||||||
T. Rowe Price Associates, Inc. 100 E. Pratt Street, Baltimore, MD 21202 | 8,369,160 | (8) | 5.4 | % |
Voting Item | Voting Standard | Treatment of Abstentions & Broker Non-Votes | Board Recommendation | |||||||||||
Elect Directors | Majority of votes cast | Not counted as votes cast and, therefore, no effect | ![]() | FOR each director nominee |
Voting Item | Voting Standard | Treatment of Abstentions & Broker Non-Votes | Board Recommendation | |||||||||||
Approve | Majority of votes cast | Not counted as votes cast and, therefore, no effect | ![]() | FOR | ||||||||||
Approve Frequency of Advisory Vote to Approve Executive Compensation | Majority of votes cast | Not counted as votes cast and, therefore, no effect | ![]() | ANNUALLY | ||||||||||
Ratify Auditor Appointment | Majority of votes cast | N/A | ![]() | FOR |
Year Ended September 30, 2022 | ||||||||
Reconciliation of Non-GAAP Performance Measures to GAAP Performance Measures (in millions) | ||||||||
Net income | $ | 76.6 | ||||||
Strategic reorganization and other charges | 7.2 | |||||||
Warranty Charge | 4.5 | |||||||
Goodwill impairment | 6.8 | |||||||
Income tax benefit of adjusting items | (4.1) | |||||||
Adjusted net income | $ | 91.0 | ||||||
Weighted average diluted shares outstanding | 158.0 | |||||||
Net income per diluted share | $ | 0.48 | ||||||
Adjusted net income per diluted share | $ | 0.58 | ||||||
Net income | $ | 76.6 | ||||||
Income tax expense | 22.0 | |||||||
Interest expense, net | 16.9 | |||||||
Pension benefit other than service | (3.9) | |||||||
Operating income | 111.6 | |||||||
Strategic reorganization and other charges | 7.2 | |||||||
Warranty Charge | 4.5 | |||||||
Goodwill impairment | 6.8 | |||||||
Adjusted operating income | 130.1 | |||||||
Pension benefit other than service | 3.9 | |||||||
Depreciation and amortization | 60.5 | |||||||
Adjusted EBITDA | $ | 194.5 | ||||||
Reconciliation of Non-GAAP Performance Measures to GAAP Performance Measures | |||||||||||||||||||
2017 | |||||||||||||||||||
GAAP | Reporting Adjustments | Adjusted Non-GAAP As Reported | Singer Valve and Other | Performance Evaluation Basis - Adjusted | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | 826.0 | $ | — | $ | 826.0 | $ | (10.3 | ) | $ | 815.7 | ||||||||
Cost of goods sold | 558.5 | (10.8 | ) | 547.7 | (5.7 | ) | 542.0 | ||||||||||||
Gross profit | 267.5 | 10.8 | 278.3 | (4.6 | ) | 273.7 | |||||||||||||
Selling, general and administrative expenses | 156.4 | — | 156.4 | (4.0 | ) | 152.4 | |||||||||||||
Other charges | 10.4 | (10.4 | ) | — | — | — | |||||||||||||
Operating income from continuing operations | 100.7 | 21.2 | 121.9 | (0.6 | ) | 121.3 | |||||||||||||
Interest expense, net | 22.2 | — | 22.2 | — | 22.2 | ||||||||||||||
Income tax expense | 24.2 | 4.3 | 28.5 | 2.1 | 30.6 | ||||||||||||||
Income from continuing operations | $ | 54.3 | $ | 16.9 | $ | 71.2 | $ | (2.7 | ) | $ | 68.5 | ||||||||
2016 | |||||||||||||||||||
GAAP | Reporting Adjustments | Adjusted Non-GAAP As Reported | Adjust to Performance Plan Tax Rate | Performance Evaluation Basis - Adjusted | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | 800.6 | $ | — | $ | 800.6 | $ | — | $ | 800.6 | |||||||||
Cost of goods sold | 532.7 | — | 532.7 | — | 532.7 | ||||||||||||||
Gross profit | 267.9 | — | 267.9 | — | 267.9 | ||||||||||||||
Selling, general and administrative expenses | 151.2 | — | 151.2 | — | 151.2 | ||||||||||||||
Pension settlement | 16.6 | (16.6 | ) | — | — | — | |||||||||||||
Other charges | 7.2 | (7.2 | ) | — | — | — | |||||||||||||
Operating income from continuing operations | 92.9 | 23.8 | 116.7 | — | 116.7 | ||||||||||||||
Interest expense, net | 23.6 | — | 23.6 | — | 23.6 | ||||||||||||||
Income tax expense | 24.2 | 8.1 | 32.3 | 3.5 | 35.8 | ||||||||||||||
Income from continuing operations | $ | 45.1 | $ | 15.7 | $ | 60.8 | $ | (3.5 | ) | $ | 57.3 |