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NOTICE OF ANNUAL MEETING
ITEMS OF BUSINESS
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 2022 ANNUAL MEETING 1 LETTER FROM OUR BOARD OF DIRECTORS
on February 7, 2022. You will find information about the Meeting, including the matters to be voted on, in the Notice of Meeting and Proxy Statement.
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 164 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. It is this breadth of products and services that makes it possible for 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 2021
PROXY STATEMENT FOR 2022 ANNUAL MEETING 3 PROXY SUMMARY
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 7 meetings in fiscal 2021 and each director attended 100% of the total number of meetings of the Board and committees of which the director was a member. 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 Chairman. 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 Mr. Van Arsdell as Chair of the Audit Committee effective January 1, 2022. Mr. Kolb will continue to serve as Chair of the Audit Committee until such time. 4 MUELLER WATER PRODUCTS, INC. PROXY SUMMARY 2021 Board Snapshot
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 2021, 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 over 160 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. PROXY STATEMENT FOR 2022 ANNUAL MEETING 5 PROXY SUMMARY In December 2020, the Company published its inaugural ESG Report, which includes the principal sustainability metrics the Company tracks: water/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 2021, 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 that will be published in January 2022. We are excited about the progress made through our ESG initiatives including: •Completion of a third-party formal materiality assessment to help define the issues most important to our stakeholders; •Progression toward a new brass foundry which will pour a lead-free copper alloy; •Evaluation of pay equity for all employee segments based on gender and race; and •Implementation of a Diversity and Inclusion Council, which includes representatives from our manufacturing facilities as well as corporate headquarters. 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 were spun off as a publicly traded company, 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 to develop, monitor, implement, measure and report on ESG-related matters. 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. Mueller was named a Winning ‘W’ Company by 2020 Women on Boards for having at least twenty percent women on its Board before the year 2020. •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 stockholders. 6 MUELLER WATER PRODUCTS, INC. PROXY SUMMARY •Our Board is led by an independent Chairman of the Board and supported by the work of 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. •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 stockholder 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 2021 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.
(1)PRSUs based upon RONA were last awarded on December 3, 2019 for fiscal year 2020. The last tranche of RONA-based PRSUs vests on September 30, 2022. PROXY STATEMENT FOR 2022 ANNUAL MEETING 7 PROXY SUMMARY
(1)Excludes Other Compensation. See "Executive Compensation — Summary Compensation Table" for total compensation earned.
2021 Performance Highlights Related to Executive Compensation |
Company Results for Performance Evaluation Basis | ||||||||||||||
Adjusted Net Sales | Adjusted EBITDA | Adjusted Cash Flow from Operations (before tax) | Return on Net Assets (%) | |||||||||||
($ in millions) | ||||||||||||||
2021 | $1,104.2 | $204.3 | $176.0 | 22.9 |
Adjusted Net Sales | Adjusted Operating Income from Continuing Operations | Adjusted Income from Continuing Operations | Return on Net Assets | |||
($ in millions) | ($ in millions) | ($ in millions) | (%) | |||
2017 | 815.7 | 121.3 | 68.5 | 34.4 | ||
2016 | 800.6 | 116.7 | 57.3 | 34.0 |
CEO TOTAL TARGET COMPENSATION(1) | OTHER NEOs TOTAL TARGET COMPENSATION(1) | |||||||
•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 | |||||
Ratification of the Appointment of our Independent Registered Public Accounting Firm for Fiscal 2022 | |||||
The Board recommends a vote FOR this proposal. |
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 |
Page | |||||
Summary Compensation Table | |||||
Proposal Three - Ratification of the Appointment of our | |||||
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 | Ortiz | Rethore | Sharritts | 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 | |||||||||||||||||||||||||||||||||||
Environment, Health and Safety | ü | ü | ü | ü | ü | ü | |||||||||||||||||||||||||||||||||||
Technology/Systems | ü | ü | ü | ü | |||||||||||||||||||||||||||||||||||||
Materials Science and Engineering | ü | ||||||||||||||||||||||||||||||||||||||||
Branding | ü | ü | ü | ü | ü | ü | ü | ü |
Age: 76 Director since: 2010 Board committees: | Shirley C. Franklin | ||||||
Background Ms. Franklin Key Experiences The Board considered Ms. Franklin’s record of civic involvement and significant executive management experience, which has spanned three decades. | |||||||
Delta Air Lines, Inc. |
Age: 57 Director since: 2017 Board committees: | J. Scott Hall | |||||||
Mr. Hall has served as our President and Chief Executive Officer since January 2017. He served as President and CEO of Textron’s Industrial segment from December 2009 until January 2017. Mr. Hall joined Textron in 2001 as president of Tempo, a multi-facility roll-up of communication test equipment. He was named president of Greenlee in 2003 when Tempo became part of the Greenlee business unit. Prior to joining Textron, Mr. Hall had several leadership roles at General Cable, a leading manufacturer of wire and cable. Mr. Hall ran General Cable’s Canadian businesses before taking over responsibility for General Cable’s Global Communications business. Mr. Hall Key Experiences The Board considered Mr. Hall’s commercial experience and business leadership skills gained from his past and current positions in management. | ||||||||
Other public company boards within the last five years: Altra Industrial Motion, Inc. |
Chairperson | Member | A = Audit | E = EHS | X = Executive | G = Governance | C = Compensation |
Age: 72 Director since: 2011 Board committees: | Thomas J. Hansen | |||||||
Until 2012, Mr. Hansen served as Vice Chairman of Illinois Tool Works Inc. (“ITW”), a manufacturer of fasteners and components, consumable systems and a variety of specialty products and equipment. He joined ITW in 1980 as a sales and marketing manager of the Shakeproof Industrial Products businesses. From 1998 to 2006, Mr. Hansen served as Executive Vice President of Key Experiences The Board considered Mr. Hansen’s experience as a senior executive of a large diversified industrial manufacturing company that faces many of the same economic, social and governance issues we face. | ||||||||
Other public company boards within the last five years: Standex International Corporation, Terex Corporation |
Age: 78 Director since: 2006 Board committees: | Mark J. O’Brien | |||||||
Mr. O’Brien serves as our Key Experiences The Board considered Mr. O’Brien’s knowledge of capital markets, municipal finance and the homebuilding and real estate sectors of the economy. | ||||||||
Other public company boards within the last five years: Walter Investment Management Corp. |
Chairperson | Member | A = Audit | E = EHS | X = Executive | G = Governance | C = Compensation |
Age: 51 Director since: 2019 Board committees: | Christine Ortiz | |||||||
Background Dr. Ortiz is the Morris Cohen Professor of Materials Science and Engineering at the Massachusetts Institute of Technology. The author of more than 200 scholarly publications, she has supervised research projects across multiple academic disciplines, received 30 national and international honors, including the Presidential Early Career Award in Science and Engineering awarded to her by President George W. Bush, and served as the Dean for Graduate Education at MIT from 2010 to 2016. She is also the founder of an innovative, nonprofit, post-secondary educational institution, Station1. Dr. Ortiz earned a Bachelor of Science degree from Rensselaer Polytechnic Institute and a Master of Science degree and a Doctor of Philosophy degree from Cornell University, each in the field of materials science and engineering. Key Experiences The Board considered Dr. Ortiz’s background as a dean, a social entrepreneur and a distinguished scientist and engineer whose research focuses on multi-scale mechanics of structural materials, materials design, nanotechnology, additive manufacturing, and computational materials. | ||||||||
Age: 80 Director since: 2006 Board committees: | Bernard G. Rethore | |||||||
Background Mr. Rethore has served as Chairman Emeritus of Flowserve Corporation, a manufacturer of pumps, valves, seals and components, since 2000. From January 2000 to April 2000, he served as Flowserve’s Chairman. Mr. Rethore had previously served as its Chairman, President and Chief Executive Officer. In 2008, Mr. Rethore was honored by the Outstanding Directors Exchange as an Outstanding Director of the Year, and in 2012, he was designated a Board Leadership Fellow by the National Association of Corporate Directors. He earned a Bachelor of Arts degree in Economics (Honors) from Yale University and a Master of Business Administration degree from the Wharton School of the University of Pennsylvania, where he was a Joseph P. Wharton Scholar and Fellow. Key Experiences The Board considered Mr. Rethore’s more than 30 years of experience at senior executive level positions with public manufacturing companies and his service on the boards of multiple public companies, as a member and chair of their executive, audit, compensation, environment, health and safety, governance and special committees. His extensive management and board experience | ||||||||
Other public company boards within the last five years: Dover Corp., Walter Energy, Inc. |
Chairperson | Member | A = Audit | E = EHS | X = Executive | G = Governance | C = Compensation |
Age: 53 Director since: 2021 Board committees: | Jeffery S. Sharritts | |||||||
Background Mr. Sharritts is the Senior Vice President of the Americas at Cisco. During his 20-year tenure at Cisco, Mr. Sharritts has served in several executive sales roles, including Senior Vice President, U.S. Commercial Sales, from 2014 to 2018. Mr. Sharritts holds Advisory Board Member positions with the Georgia Chamber of Commerce and Metro Atlanta Chamber of Commerce. He earned his Bachelor of Science degree in Business Administration from The Ohio State University. Key Experiences The Board considered Mr. Sharritts’ extensive experience at senior executive level positions and particular expertise related to technology sales and marketing. | ||||||||
Age: 77 Director since: 2008 Board committees: | Lydia W. Thomas | |||||||
Background Dr. Thomas served as President and Chief Executive Officer of Noblis, Inc., a public interest scientific research, technology and strategy company, from 1996 to 2007. She was previously with The MITRE Corporation, Center for Environment, Resources and Space, serving as Senior Vice President and General Manager from 1992 to 1996, Vice President from 1989 to 1992 and Technical Director from 1982 to 1989. In 2013, she was honored by the Outstanding Directors Exchange as an Outstanding Director of the Year. Dr. Thomas is also a member of the Council on Foreign Relations. She earned a Bachelor of Science degree in zoology from Howard University, a Master of Science degree in microbiology from American University and a Doctor of Philosophy degree in cytology from Howard University. Key Experiences The Board considered Dr. Thomas’ extensive experience at senior executive level positions and particular expertise related to information technology and environment, health and safety matters. | ||||||||
Other public company boards within the last five years: Cabot Corporation, |
Chairperson | Member | A = Audit | E = EHS | X = Executive | G = Governance | C = Compensation |
Age: 72 Director since: 2006 Board committees: | Michael T. Tokarz | |||||||
Background Michael T. Tokarz has Key Experiences The Board considered Mr. Tokarz’s knowledge and experience in banking and finance, his entrepreneurial and business leadership skills, his more than 20 years of board experience with publicly traded companies and his extensive corporate governance | ||||||||
Other public company boards within the last five years: MVC Capital, Inc., Walter Energy, Inc., CNO Financial Group, Inc., Walter Investment Management Corp. |
Age: 71 Director since: 2019 Board committees: | Stephen C. Van Arsdell | |||||||
Background Mr. Van Arsdell is a former senior partner of Deloitte LLP, where he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP from 2010-2012 and as Deputy Chief Executive Officer from 2009-2010. He also served as a member of Deloitte’s board of directors from 2003-2009, during which time he held the position of Vice-Chairman. Mr. Van Arsdell has served as a member of the board of directors of First Midwest Bancorp, Inc. since 2017 and has been a member of the audit committee of Brown Brothers Harriman since 2015. Mr. Van Arsdell earned both a Bachelor of Science degree in Accounting and a Masters of Accounting Science degree from the University of Illinois. He is a certified public accountant. Key Experiences The Board considered Mr. Van Arsdell’s extensive background in audit and finance together with his expertise in accounting, risk management and corporate governance. | ||||||||
Other public company boards: First Midwest Bancorp, Inc. |
Chairperson | Member | A = Audit | E = EHS | X = Executive | G = Governance | C = Compensation |
9 of our 10 directors are independent, including the Chairman | 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. The Board expects all candidates recommended to the full Board to have received the approval of all members of the Governance Committee. 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/Systems 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. | |||||
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 |
•Corporate Governance Guidelines | ||||||||||
•Code of Business Conduct and Ethics | ||||||||||
Audit Committee | |||||||||||||||||||||
Kolb (Chair) Rethore | Sharritts Van Arsdell | •Oversees the integrity of our financial reporting 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 | |||||||||||||||||||||
2021 |
Compensation and Human Resources Committee | |||||||||||||||||||||
Tokarz(Chair) Franklin Hansen Kolb Ortiz Sharritts | • •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. | ||||||||||||||||||||
2021 |
Thomas (Chair) Franklin Hansen | Ortiz | •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. | |||||||||||||||||
2021 |
Nominating and Corporate Governance Committee | ||||||||||||||||||||
CURRENT MEMBERS Rethore (Chair) Kolb Thomas Tokarz Van Arsdell | •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. | |||||||||||||||||||
6 meetings in fiscal 2021 |
Executive Committee | |||||||||||||||||||||
CURRENT MEMBERS Hall(Chair) Kolb O’Brien Rethore Tokarz | •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. | ||||||||||||||||||||
2021 |
The Board held 7 meetings in fiscal 2021 and each director attended 100% of the total number of meetings of the Board and its committees of which she or he was a member in fiscal 2021. 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 2021 Annual Meeting of Stockholders. | Fiscal 2021 Board/Committee meeting attendance | ||||
Board Composition and Leadership | ü | Our Board is led by an independent Non-Executive Chairman who is not our CEO | ||||||||||
Each of our director nominees, other than our President and CEO, is independent | ||||||||||||
ü | 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 | We have a well-developed committee structure with clearly understood responsibilities | |||||||||||
ü | Each member of our standing committees is independent | |||||||||||
Director Effectiveness | ü | Our Board, committees and directors conduct regular self and peer evaluations, led by our Governance Committee, to | 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, and committees have the authority to retain independent advisors | |||||||
ü | Our Board frequently meets in executive session without the CEO or other members of management | |||||||
ü | Our Board focuses on significant risks and seeks the proper calibration of risk and reward while focusing on the longer-term interests of our 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 ($) | Other ($)(4) | Total ($) | |||||||||||||||||||
Shirley C. Franklin | 60,000 | 27,000 | — | 87,000 | 104,995 | 191,995 | |||||||||||||||||
Thomas J. Hansen | 60,000 | 27,000 | — | 87,000 | 104,995 | 191,995 | |||||||||||||||||
Jerry W. Kolb | 80,000 | 48,000 | — | 128,000 | 104,995 | 232,995 | |||||||||||||||||
Mark J. O’Brien | 160,000 | 10,500 | — | 170,500 | 104,995 | 275,495 | |||||||||||||||||
Christine Ortiz | 60,000 | 27,000 | — | 87,000 | 104,995 | 191,995 | |||||||||||||||||
Bernard G. Rethore | 70,000 | 39,000 | — | 109,000 | 104,995 | 213,995 | |||||||||||||||||
Jeffery S. Sharritts(3) | 31,333 | 18,000 | — | 49,333 | 87,491 | 136,824 | |||||||||||||||||
Lydia W. Thomas | 70,000 | 27,000 | 10,000 | 107,000 | 104,995 | 211,995 | |||||||||||||||||
Michael T. Tokarz | 75,000 | 28,500 | — | 103,500 | 104,995 | 208,495 | |||||||||||||||||
Stephen C. Van Arsdell | 60,000 | 39,000 | — | 99,000 | 104,995 | 203,995 |
Option Awards | Stock Awards | |||||||||||||
Number of Securities Underlying Options (#) | Number of Shares or Units of Stock That Have Not Vested (#) | |||||||||||||
Exercisable | Unexercisable | |||||||||||||
Shirley C. Franklin | 10,223 | — | 8,222 | |||||||||||
Thomas J. Hansen | 33,025 | — | 8,222 | |||||||||||
Jerry W. Kolb | — | — | 8,222 | |||||||||||
Mark J. O’Brien | 39,990 | — | 8,222 | |||||||||||
Christine Ortiz | — | — | 8,222 | |||||||||||
Bernard G. Rethore | 20,447 | — | 8,222 | |||||||||||
Jeffery S. Sharritts | — | — | 6,476 | |||||||||||
Lydia W. Thomas | 33,025 | — | 8,222 | |||||||||||
Michael T. Tokarz | 39,990 | — | 8,222 | |||||||||||
Stephen C. Van Arsdell | — | — | 8,222 |
Proposal Two | |||||
Advisory Resolution to Approve Executive Compensation | |||||
The Board recommends a vote FOR this proposal. |
Fiscal 2017 Director Compensation Table | ||||||||||||
Name | Fees Earned or Paid in Cash ($) | 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 ($) | Other ($)(4) | Total ($) | |||||||||||||||||||
Shirley C. Franklin | 60,000 | 27,000 | — | 87,000 | 104,995 | 191,995 | |||||||||||||||||
Thomas J. Hansen | 60,000 | 27,000 | — | 87,000 | 104,995 | 191,995 | |||||||||||||||||
Jerry W. Kolb | 80,000 | 48,000 | — | 128,000 | 104,995 | 232,995 | |||||||||||||||||
Mark J. O’Brien | 160,000 | 10,500 | — | 170,500 | 104,995 | 275,495 | |||||||||||||||||
Christine Ortiz | 60,000 | 27,000 | — | 87,000 | 104,995 | 191,995 | |||||||||||||||||
Bernard G. Rethore | 70,000 | 39,000 | — | 109,000 | 104,995 | 213,995 | |||||||||||||||||
Jeffery S. Sharritts(3) | 31,333 | 18,000 | — | 49,333 | 87,491 | 136,824 | |||||||||||||||||
Lydia W. Thomas | 70,000 | 27,000 | 10,000 | 107,000 | 104,995 | 211,995 | |||||||||||||||||
Michael T. Tokarz | 75,000 | 28,500 | — | 103,500 | 104,995 | 208,495 | |||||||||||||||||
Stephen C. Van Arsdell | 60,000 | 39,000 | — | 99,000 | 104,995 | 203,995 |
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 | 10,223 | — | 8,222 | |||||||||||
Thomas J. Hansen | 33,025 | — | 8,222 | |||||||||||
Jerry W. Kolb | — | — | 8,222 | |||||||||||
Mark J. O’Brien | 39,990 | — | 8,222 | |||||||||||
Christine Ortiz | — | — | 8,222 | |||||||||||
Bernard G. Rethore | 20,447 | — | 8,222 | |||||||||||
Jeffery S. Sharritts | — | — | 6,476 | |||||||||||
Lydia W. Thomas | 33,025 | — | 8,222 | |||||||||||
Michael T. Tokarz | 39,990 | — | 8,222 | |||||||||||
Stephen C. Van Arsdell | — | — | 8,222 |
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 Resolution 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 ($)(4) | Total ($) | |||||||||||||||||||
Shirley C. Franklin | 60,000 | 27,000 | — | 87,000 | 104,995 | 191,995 | |||||||||||||||||
Thomas J. Hansen | 60,000 | 27,000 | — | 87,000 | 104,995 | 191,995 | |||||||||||||||||
Jerry W. Kolb | 80,000 | 48,000 | — | 128,000 | 104,995 | 232,995 | |||||||||||||||||
Mark J. O’Brien | 160,000 | 10,500 | — | 170,500 | 104,995 | 275,495 | |||||||||||||||||
Christine Ortiz | 60,000 | 27,000 | — | 87,000 | 104,995 | 191,995 | |||||||||||||||||
Bernard G. Rethore | 70,000 | 39,000 | — | 109,000 | 104,995 | 213,995 | |||||||||||||||||
Jeffery S. Sharritts(3) | 31,333 | 18,000 | — | 49,333 | 87,491 | 136,824 | |||||||||||||||||
Lydia W. Thomas | 70,000 | 27,000 | 10,000 | 107,000 | 104,995 | 211,995 | |||||||||||||||||
Michael T. Tokarz | 75,000 | 28,500 | — | 103,500 | 104,995 | 208,495 | |||||||||||||||||
Stephen C. Van Arsdell | 60,000 | 39,000 | — | 99,000 | 104,995 | 203,995 |
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 | 10,223 | — | 8,222 | |||||||||||
Thomas J. Hansen | 33,025 | — | 8,222 | |||||||||||
Jerry W. Kolb | — | — | 8,222 | |||||||||||
Mark J. O’Brien | 39,990 | — | 8,222 | |||||||||||
Christine Ortiz | — | — | 8,222 | |||||||||||
Bernard G. Rethore | 20,447 | — | 8,222 | |||||||||||
Jeffery S. Sharritts | — | — | 6,476 | |||||||||||
Lydia W. Thomas | 33,025 | — | 8,222 | |||||||||||
Michael T. Tokarz | 39,990 | — | 8,222 | |||||||||||
Stephen C. Van Arsdell | — | — | 8,222 |
Proposal Two | |||||
Advisory Resolution to Approve Executive Compensation | |||||
The Board recommends a vote FOR this proposal. |
President and Chief Executive Officer | Marietta Edmunds Zakas Executive Vice President and Chief Financial Officer | Steven S. Heinrichs Executive Vice President and 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 acquired i2O Water Ltd, a company organized in the United Kingdom, to expand and accelerate our | |||||
We made continued strides in increasing our corporate efficiencies and reducing our geographic footprint with the ongoing consolidation of our facilities in Woodland, Washington; Hammond, Indiana; Aurora, Illinois; and Surrey, British Columbia into the recently acquired facility in Kimball, Tennessee. | |||||
We issued $450 million of 4.0% Senior Unsecured Notes due in 2029 and redeemed our 5.5% Senior Unsecured Notes that were due in 2026. | |||||
We published our inaugural ESG Report in December 2020. |
Focused on Operational Investment and Efficiencies to Increase Long-Term Stockholder Value | |||||||||||||||
We GAAP information. | |||||||||||||||
Dividend Benefits | Stockholder Value | ||||||||||||||
•We •We returned $34.8 million to | |||||||||||||||
We repurchased |
Company Results for Performance Evaluation Basis | ||||||||||||||
Adjusted Net Sales(1) | Adjusted EBITDA(2) | Adjusted Cash Flow(3) | Return on Net Assets(4) (%) | |||||||||||
($ in millions) | ||||||||||||||
2021 | $1,104.2 | $204.3 | $176.0 | 22.9 |
Adjusted Net Sales | Adjusted Operating Income from Continuing Operations(1) | Adjusted Income from Continuing Operations(2) | Return on Net Assets(3) | ||||
($ in millions) | ($ in millions) | ($ in millions) | (%) | ||||
2017 | 815.7 | 121.3 | 68.5 | 34.4 | |||
2016 | 800.6 | 116.7 | 57.3 | 34.0 |
PERFORMANCE-BASED TOTAL TARGET COMPENSATION(1) | ||||||||||||
We structure performance-based compensation to pay for performance. |
“SAY-ON-PAY” SUPPORT | |||||||||||
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 | |||||||
Rexnord Corp. | |||||||
Franklin Electric Co. | |||||||
Valmont Industries, Inc. | |||||||
Watts Water Technologies, | |||||||
Pay Element | Salary | Bonus | Options | RSUs | PRSUs(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 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 |
Name | Annual Salary Rate at September 30, 2021 ($) | Annual Salary Rate at September 30, 2020 ($) | Salary Increase (%) | |||||||||||
J. Scott Hall | 825,000 | 815,567 | 1.2 | |||||||||||
Marietta Edmunds Zakas | 437,081 | 424,350 | 3.0 | |||||||||||
Steven S. Heinrichs | 443,890 | 433,063 | 2.5 | |||||||||||
Todd P. Helms | 358,750 | 350,000 | 2.5 | |||||||||||
Kenji Takeuchi | 360,500 | 350,000 | 3.0 |
2021 ANNUAL PERFORMANCE TARGETS AND RESULTS | |||||||||||||||||||||||
Weighted Aggregate Actual % of Target 146.3% | |||||||||||||||||||||||
Metric | Weight (% of Target Bonus) | Results Required to Achieve Bonus ($ in millions, except for percentages)(1) | Actual 2021 Payout Factor (% of Target Bonus) unweighted | ||||||||||||||||||||
Threshold (50%) | Target (100%) | Maximum (200%) | |||||||||||||||||||||
Adjusted EBITDA | 45.0% | 115.0% | |||||||||||||||||||||
Cash Flow from Operations | 25.0% | 200% | |||||||||||||||||||||
Net Sales | 20.0% | 200% | |||||||||||||||||||||
EHS(2) | 10.0% | — | — | — | 45.0% |
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 |
At Target Performance | At Actual Performance | ||||||||||||||||
Name | % of Salary | Amount ($) | % of Target | Amount ($) | |||||||||||||
J. Scott Hall | 105 | % | 862,912 | 141.8 | % | 1,223,178 | |||||||||||
Marietta Edmunds Zakas | 70 | % | 302,954 | 146.3 | % | 443,070 | |||||||||||
Steven S. Heinrichs | 60 | % | 264,145 | 146.3 | % | 386,312 | |||||||||||
Todd P. Helms | 60 | % | 213,481 | 146.3 | % | 312,216 | |||||||||||
Kenji Takeuchi | 45 | % | 160,633 | 146.3 | % | 234,925 |
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 MEASURE AND RESULT FOR FISCAL 2021 | ||
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 2019 | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | |||||||||||||
Fiscal 2019 | Vested 2019 RONA (3 Tranches) | ||||||||||||||||
Fiscal 2020 | Future Vesting of 2020 RONA (3 Tranches) | ||||||||||||||||
Future Vesting of 2020 Market Unit Awards (1 Tranche) | |||||||||||||||||
Fiscal 2021 | Future Vesting of 2021 Market Unit Awards (1 Tranche) |
PRSU SETTLEMENTS OF FISCAL 2019 AWARD | ||||||||||||||
Performance Periods | Total Issued Number of Shares | |||||||||||||
Fiscal 2019 | Fiscal 2020 | Fiscal 2021 | ||||||||||||
Name | Number of Shares Earned(1) | |||||||||||||
J. Scott Hall | 28,451 | 40,284 | 51,454 | 120,189 | ||||||||||
Marietta Edmunds Zakas | 8,535 | 12,085 | 15,436 | 36,056 | ||||||||||
Steven S. Heinrichs | 6,757 | 9,567 | 12,220 | 28,544 |
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 | |||||
JERRY W. | |||||
CHRISTINE ORTIZ | |||||
Name and Principal Position(1) | Fiscal Year | Salary(2) ($) | Bonus(3) ($) | Stock Awards(4) ($) | Option Awards(5) ($) | Non-Equity Incentive Plan Compensation(6) ($) | All Other Compensation(7) ($) | Total ($) | ||||||||||||||||||
J. Scott Hall President and Chief Executive Officer | 2021 | 821,821 | — | 2,910,266 | 540,491 | 1,223,178 | 53,275 | 5,549,031 | ||||||||||||||||||
2020 | 777,786 | — | 2,509,534 | — | 946,456 | 52,990 | 4,286,766 | |||||||||||||||||||
2019 | 787,950 | — | 1,514,329 | — | 438,889 | 259,338 | 3,000,506 | |||||||||||||||||||
Marietta Edmunds Zakas Executive Vice President and Chief Financial Officer | 2021 | 432,791 | — | 816,844 | 147,965 | 443,070 | 46,968 | 1,887,638 | ||||||||||||||||||
2020 | 404,692 | — | 755,866 | — | 344,717 | 49,395 | 1,554,671 | |||||||||||||||||||
2019 | 409,333 | — | 457,792 | — | 159,599 | 50,426 | 1,077,149 | |||||||||||||||||||
Steven S. Heinrichs Executive Vice President and Chief Legal and Compliance Officer and Secretary | 2021 | 440,241 | — | 642,337 | 116,232 | 386,312 | 43,816 | 1,628,938 | ||||||||||||||||||
2020 | 413,001 | — | 521,697 | — | 301,538 | 36,975 | 1,273,211 | |||||||||||||||||||
2019 | 420,000 | — | 253,320 | — | 140,364 | 50,451 | 864,135 | |||||||||||||||||||
Todd P. Helms Senior Vice President and Chief Human Resources Officer | 2021 | 355,801 | — | 360,161 | 81,362 | 312,216 | 31,484 | 1,141,023 | ||||||||||||||||||
2020 | — | — | — | — | — | — | — | |||||||||||||||||||
2019 | — | — | — | — | — | — | — | |||||||||||||||||||
Kenji Takeuchi Senior Vice President, Water Management Solutions | 2021 | 356,962 | — | 311,731 | 69,732 | 234,925 | 19,466 | 992,816 | ||||||||||||||||||
2020 | — | — | — | — | — | — | — | |||||||||||||||||||
2019 | — | — | — | — | — | — | — |
Name and Principal Position(1) | Fiscal Year | Salary(2) ($) | 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)Salaries for the NEOs are adjusted, as appropriate, annually and are effective on February 1. (3)No NEOs received additional amounts not otherwise disclosed. (4)“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 2021, the Stock Awards amounts include the aggregate grant date fair values of RSUs and Market Units granted in fiscal 2021 and the third and second tranches of RONA Units awarded in fiscal 2019 and 2020, respectively, for the fiscal 2021 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 and fiscal 2021 Market Units was $14.94 and $15.39 respectively. (5)“Option Awards” comprise stock options. All stock amounts for the awards represent the grant date fair value of stock options granted under the Stock Plan to each of the NEOs, calculated in accordance with ASC Topic 718. For more information regarding how the Company calculated these amounts, see the audited financial statements contained in our fiscal 2021 Form 10-K. The calculated compensation expense of the option awards recognized for financial reporting purposes will vary from the actual amount ultimately realized by the NEOs due to stock price fluctuations and timing factors related to the NEO’s realization of value from the option. To see the value actually received upon exercise of options by the NEOs in 2021, refer to the 2021 Option Exercises and Stock Vested table. Additional information on all outstanding option awards is reflected in the 2021 Outstanding Equity Awards table and the Grant of Plan-Based Awards |
Name | Vehicle Allowance ($) | Financial Planning(1) ($) | Contributions to 401(k) Plans ($) | Life and Long-Term Disability Insurance ($) | Other(2) ($) | Total ($) | ||||||||||||||
J. Scott Hall | 24,000 | — | 11,758 | 17,517 | — | 53,275 | ||||||||||||||
Marietta Edmunds Zakas | 18,000 | 7,500 | 11,613 | 9,855 | — | 46,968 | ||||||||||||||
Steven S. Heinrichs | 18,000 | 1,269 | 11,801 | 8,787 | 3,959 | 43,816 | ||||||||||||||
Todd P. Helms | — | 7,500 | 14,350 | 6,223 | 3,411 | 31,484 | ||||||||||||||
Kenji Takeuchi | — | — | 12,544 | 3,851 | 3,071 | 19,466 |
Name | Vehicle Allowance or Use of Leased Vehicle ($) | 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(6) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh)(7) | All Other Stock-Based Awards (#) | Grant Date Fair Value of Stock-Based Awards ($)(8) | ||||||||||||||||||||||||||||||||||||
Name | Award Date | Minimum ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||||||||||||||||||||||
J. Scott Hall | (1) | — | 862,912 | 1,725,824 | |||||||||||||||||||||||||||||||||||||
12/2/2020 | (2) | 49,008 | 581,235 | ||||||||||||||||||||||||||||||||||||||
12/2/2020 | (3) | 49,009 | 98,018 | 196,036 | 1,508,497 | ||||||||||||||||||||||||||||||||||||
12/2/2020 | (4) | 177,210 | 11.86 | 540,491 | |||||||||||||||||||||||||||||||||||||
12/3/2019 | (5) | 12,433 | 24,866 | 49,732 | 294,911 | ||||||||||||||||||||||||||||||||||||
11/27/2018 | (6) | 22,160 | 44,319 | 88,638 | 525,623 | ||||||||||||||||||||||||||||||||||||
Marietta Edmunds Zakas | (1) | — | 302,954 | 605,907 | |||||||||||||||||||||||||||||||||||||
12/2/2020 | (2) | 13,416 | 159,114 | ||||||||||||||||||||||||||||||||||||||
12/2/2020 | (3) | 13,417 | 26,834 | 53,668 | 412,975 | ||||||||||||||||||||||||||||||||||||
12/2/2020 | (4) | 48,513 | 11.86 | 147,965 | |||||||||||||||||||||||||||||||||||||
12/3/2019 | (5) | 3,671 | 7,341 | 14,682 | 87,064 | ||||||||||||||||||||||||||||||||||||
11/27/2018 | (6) | 6,648 | 13,296 | 26,592 | 157,691 |
Estimated Possible Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Issuance of Shares Under Equity Incentive Plans(6) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh)(7) | All Other Stock-Based Awards (#) | Grant Date Fair Value of Stock-Based Awards ($)(8) | ||||||||||||||||||||||||||||||||||||
Name | Award Date | Minimum ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||||||||||||||||||||||
Steven S. Heinrichs | (1) | — | 264,145 | 528,289 | |||||||||||||||||||||||||||||||||||||
12/2/2020 | (2) | 10,539 | 124,993 | ||||||||||||||||||||||||||||||||||||||
12/2/2020 | (3) | 10,540 | 21,079 | 42,158 | 324,406 | ||||||||||||||||||||||||||||||||||||
12/2/2020 | (4) | 38,109 | 11.86 | 116,232 | |||||||||||||||||||||||||||||||||||||
12/3/2019 | (5) | 2,871 | 5,742 | 11,484 | 68,100 | ||||||||||||||||||||||||||||||||||||
11/27/2018 | (6) | 5,263 | 10,526 | 21,052 | 124,838 | ||||||||||||||||||||||||||||||||||||
Todd P. Helms | (1) | — | 213,481 | 426,961 | |||||||||||||||||||||||||||||||||||||
12/2/2020 | (2) | 7,377 | 87,491 | ||||||||||||||||||||||||||||||||||||||
12/2/2020 | (3) | 7,378 | 14,755 | 29,510 | 227,079 | ||||||||||||||||||||||||||||||||||||
12/2/2020 | (4) | 26,676 | 11.86 | 81,362 | |||||||||||||||||||||||||||||||||||||
2/24/2020 | (9) | 1,922 | 3,844 | 7,688 | 45,590 | ||||||||||||||||||||||||||||||||||||
Kenji Takeuchi | (1) | — | 160,633 | 321,266 | |||||||||||||||||||||||||||||||||||||
12/2/2020 | (2) | 6,321 | 74,967 | ||||||||||||||||||||||||||||||||||||||
12/2/2020 | (3) | 6,324 | 12,647 | 25,294 | 194,637 | ||||||||||||||||||||||||||||||||||||
12/2/2020 | (4) | 22,863 | 11.86 | 69,732 | |||||||||||||||||||||||||||||||||||||
12/3/2019 | (5) | 1,776 | 3,552 | 7,104 | 42,127 |
Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||||
Number of Securities Underlying Options (#) | Option Exercise Price ($)(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 | 11/27/18 | (5) | 18,993 | 289,073 | |||||||||||||||||||||||||||||||
12/03/19 | (6) | 37,300 | 567,706 | ||||||||||||||||||||||||||||||||
12/03/19 | (7) | 76,338 | 1,161,864 | ||||||||||||||||||||||||||||||||
12/03/19 | (8) | 55,950 | 851,559 | ||||||||||||||||||||||||||||||||
12/02/20 | (9) | 49,008 | 745,902 | ||||||||||||||||||||||||||||||||
12/02/20 | (10) | 98,018 | 1,491,834 | ||||||||||||||||||||||||||||||||
12/02/20 | (11) | — | 177,210 | 11.86 | 12/02/30 | ||||||||||||||||||||||||||||||
Marietta Edmunds Zakas | 11/27/18 | (5) | 5,698 | 86,724 | |||||||||||||||||||||||||||||||
12/03/19 | (6) | 11,012 | 167,603 | ||||||||||||||||||||||||||||||||
12/03/19 | (7) | 22,535 | 342,983 | ||||||||||||||||||||||||||||||||
12/03/19 | (8) | 16,518 | 251,404 | ||||||||||||||||||||||||||||||||
12/02/20 | (9) | 13,416 | 204,192 | ||||||||||||||||||||||||||||||||
12/02/20 | (10) | 26,834 | 408,413 | ||||||||||||||||||||||||||||||||
12/02/20 | (11) | — | 48,513 | 11.86 | 12/02/30 | ||||||||||||||||||||||||||||||
Steven S. Heinrichs | 11/27/18 | (5) | 4,511 | 68,657 | |||||||||||||||||||||||||||||||
12/03/19 | (6) | 8,614 | 131,105 | ||||||||||||||||||||||||||||||||
12/03/19 | (7) | 17,627 | 268,283 | ||||||||||||||||||||||||||||||||
12/03/19 | (8) | 12,921 | 196,658 | ||||||||||||||||||||||||||||||||
12/02/20 | (9) | 10,539 | 160,404 | ||||||||||||||||||||||||||||||||
12/02/20 | (10) | 21,079 | 320,822 | ||||||||||||||||||||||||||||||||
12/02/20 | (11) | — | 38,109 | 11.86 | 12/02/30 | ||||||||||||||||||||||||||||||
Todd P. Helms | 02/24/20 | (6) | 5,766 | 87,759 | |||||||||||||||||||||||||||||||
02/24/20 | (12) | 19,768 | 300,869 | ||||||||||||||||||||||||||||||||
02/24/20 | (7) | 10,405 | 158,364 | ||||||||||||||||||||||||||||||||
02/24/20 | (8) | 7,498 | 114,120 | ||||||||||||||||||||||||||||||||
12/02/20 | (9) | 7,377 | 112,278 | ||||||||||||||||||||||||||||||||
12/02/20 | (10) | 14,755 | 224,571 | ||||||||||||||||||||||||||||||||
12/02/20 | (11) | — | 26,676 | 11.86 | 12/02/30 | ||||||||||||||||||||||||||||||
Kenji Takeuchi | 12/03/19 | (6) | 5,328 | 81,092 | |||||||||||||||||||||||||||||||
12/03/19 | (7) | 10,903 | 165,944 | ||||||||||||||||||||||||||||||||
12/03/19 | (8) | 7,992 | 121,638 | ||||||||||||||||||||||||||||||||
12/02/20 | (9) | 6,321 | 96,206 | ||||||||||||||||||||||||||||||||
12/02/20 | (10) | 12,647 | 192,487 | ||||||||||||||||||||||||||||||||
12/02/20 | (11) | — | 22,863 | 11.86 | 12/02/30 |
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 | 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) ($) | ||||
Gregory E. Hyland | 500,000 | 4,685,686 | 108,743 | 1,437,163 | ||||
Scott Hall | — | — | — | — | ||||
Evan L. Hart | — | — | 30,735 | 406,205 | ||||
Keith L. Belknap | — | — | 33,027 | 420,183 | ||||
Gregory S. Rogowski | — | — | 29,538 | 390,388 | ||||
Marietta Edmunds Zakas | — | — | 13,977 | 184,755 |
Option Awards | RSU Awards | PRSU Awards(3) | ||||||||||||||||||||||||
Name | Number of Shares Acquired on Exercise | Value Realized on Exercise(1) ($) | 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 | — | — | 61,145 | 735,161 | 120,189 | 1,829,277 | ||||||||||||||||||||
Marietta Edmunds Zakas | 25,260 | 369,631 | 19,262 | 231,721 | 36,056 | 548,772 | ||||||||||||||||||||
Steven S. Heinrichs | — | — | 8,817 | 105,443 | 28,544 | 434,440 | ||||||||||||||||||||
Todd P. Helms | — | — | 11,616 | 153,099 | — | — | ||||||||||||||||||||
Kenji Takeuchi | — | — | 2,664 | 31,382 | — | — |
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 | 825,000 | 105 | 2,000 | 4 weeks | 300.0 | ||||||||||||
Marietta Edmunds Zakas | 437,081 | 70 | 1,500 | 4 weeks | 262.5 | ||||||||||||
Steven S. Heinrichs | 443,890 | 60 | 1,500 | 4 weeks | 262.5 | ||||||||||||
Todd P. Helms(4) | 358,750 | 60 | N/A | 4 weeks | 100.0 | ||||||||||||
Kenji Takeuchi(4) | 360,500 | 45 | 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 | 2,538,462 | (5) | 1,223,178 | — | 59,273 | 25,000 | 3,845,913 | ||||||||||||||||||||||||
B | 3,439,286 | (6) | 1,223,178 | 5,703,364 | 124,307 | 288,750 | 10,778,885 | |||||||||||||||||||||||||
C | — | — | 5,324,904 | — | — | 5,324,904 | ||||||||||||||||||||||||||
Marietta Edmunds Zakas | A | 1,180,960 | (5) | 443,070 | — | 57,757 | 25,000 | 1,706,787 | ||||||||||||||||||||||||
B | 1,513,692 | (6) | 443,070 | 1,624,322 | 128,643 | 152,978 | 3,862,705 | |||||||||||||||||||||||||
C | — | — | 1,512,592 | — | — | 1,512,592 | ||||||||||||||||||||||||||
Steven S. Heinrichs | A | 1,199,356 | (5) | 386,312 | — | 1,631 | 25,000 | 1,612,299 | ||||||||||||||||||||||||
B | 1,450,215 | (6) | 386,312 | 1,273,975 | 125,682 | 155,362 | 3,391,546 | |||||||||||||||||||||||||
C | — | — | 1,186,582 | — | — | 1,186,582 | ||||||||||||||||||||||||||
Todd P. Helms | A | 698,562 | (5) | 312,216 | — | 24,195 | 25,000 | 1,059,973 | ||||||||||||||||||||||||
B | 599,827 | (6) | 312,216 | 1,087,591 | 24,195 | 25,000 | 2,048,829 | |||||||||||||||||||||||||
C | — | — | 1,029,085 | — | — | 1,029,085 | ||||||||||||||||||||||||||
Kenji Takeuchi | A | 623,156 | (5) | 234,925 | — | 23,025 | 25,000 | 906,106 | ||||||||||||||||||||||||
B | 548,864 | (6) | 234,925 | 734,187 | 23,025 | 25,000 | 1,566,001 | |||||||||||||||||||||||||
C | — | — | 680,126 | — | — | 680,126 |
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 a |
2021 | 2020 | |||||||
Audit fees(1) | $ | 3.0 | $ | 3.0 | ||||
Audit-related fees | — | — | ||||||
Tax fees | — | — | ||||||
Total fees | $ | 3.0 | $ | 3.0 |
JERRY W. KOLB, CHAIR | |||||
BERNARD G. RETHORE | |||||
JEFFERY S. SHARRITTS | |||||
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 | 68,776 | (3) | * | ||||||||
Scott Hall Director, President and Chief Executive Officer | 403,990 | * | |||||||||
Thomas J. Hansen Director | 115,113 | (3) | * | ||||||||
Jerry W. Kolb Director | 138,808 | (3) | * | ||||||||
Mark J. O’Brien Non-Executive Chairman | 191,843 | (3) | * | ||||||||
Christine Ortiz Director | 26,407 | (3) | * | ||||||||
Bernard G. Rethore Director | 188,007 | (3) | * | ||||||||
Jeffery S. Sharritts Director | — | (3) | |||||||||
Lydia W. Thomas Director | 148,643 | (3) | * | ||||||||
Michael T. Tokarz Director | 401,135 | (3) | * | ||||||||
Stephen C. Van Arsdell Director | 53,511 | (3) | * | ||||||||
Marietta Edmunds Zakas Executive Vice President and Chief Financial Officer | 379,597 | * | |||||||||
Steven S. Heinrichs Executive Vice President, Chief Legal and Compliance Officer and Secretary | 84,025 | * | |||||||||
Todd P. Helms Senior Vice President and Chief Human Resources Officer | 19,486 | * | |||||||||
Kenji Takeuchi Senior Vice President, Water Management Solutions | 16,714 | * | |||||||||
All directors and executive officers as a group (19 individuals) | 2,346,607 | 1.5 | % | ||||||||
The Vanguard Group, Inc. PO Box 2600, V26, Valley Forge, PA 19482-2600 | 13,804,752 | (4) | 8.8 | % | |||||||
BlackRock, Inc. 55 East 52nd Street, New York, NY 10055 | 12,949,937 | (5) | 8.3 | % |
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 | |||||||||
Impax Asset Management Group plc, et al. 7th Floor, 30 Panton Street, London, SW1Y 4AJ | 12,096,848 | (6) | 7.7 | % | |||||||
Nuance Investments, LLC 4900 Main Street, Suite 220, Kansas City, MO 64112 | 10,078,185 | (7) | 6.4 | % |
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 | |||||||||||
Approve executive compensation | Majority of votes cast | Not counted as votes cast and, therefore, no effect | FOR | |||||||||||
Ratify Auditor | Majority of votes cast | N/A | FOR |
Year Ended September 30, 2021 | ||||||||
Reconciliation of Non-GAAP Performance Measures to GAAP Performance Measures (in millions) | ||||||||
Net income | $ | 70.4 | ||||||
Strategic reorganization and other charges | 8.0 | |||||||
Loss on early extinguishment of debt | 16.7 | |||||||
Inventory restructuring write-down | 2.4 | |||||||
Benefit of one-month results related to elimination of reporting lag | (1.4) | |||||||
Income tax benefit of adjusting items | (6.6) | |||||||
Adjusted net income | $ | 89.5 | ||||||
Weighted average diluted shares outstanding | 159.2 | |||||||
Adjusted net income per diluted share | $ | 0.56 | ||||||
Net income | $ | 70.4 | ||||||
Income tax expense | 24.5 | |||||||
Interest expense, net | 23.4 | |||||||
Loss on early extinguishment of debt | 16.7 | |||||||
Pension benefit other than service | (3.3) | |||||||
Operating income | 131.7 | |||||||
Strategic reorganization and other charges | 8.0 | |||||||
Inventory restructuring write-down | 2.4 | |||||||
Benefit of one-month results related to elimination of reporting lag | (1.4) | |||||||
Adjusted operating income | 140.7 | |||||||
Pension benefit other than service | 3.3 | |||||||
Depreciation and amortization | 59.6 | |||||||
Adjusted EBITDA | $ | 203.6 | ||||||
GAAP | Reporting Adjustments | Adjusted Non-GAAP As Reported | Other(1) Adjustments | Performance Evaluation Basis | |||||||||||||
(in millions) | |||||||||||||||||
Fiscal Year 2021 Cash Flow From Operations | $ | 156.7 | $ | — | $156.7 | $ | 19.3 | $ | 176.0 |
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 |