Description of the Information Presented in the Pay versus Performance Table
As described in greater detail in the Compensation Discussion and Analysis section of this Proxy Statement, the Company’s executive compensation program reflects a pay-for-performance philosophy. While the Company utilizes several performance measures to align executive compensation with Company performance (as described in greater detail in the Compensation Discussion and Analysis section of this Proxy Statement), not all of those Company measures are presented in the Pay versus Performance table. Moreover, the Company generally seeks to incentivize long-term performance, and therefore does not specifically align the Company’s performance measures with compensation that is actually paid (as computed in accordance with Item 402(v) of Regulation S-K) for a particular fiscal year. Compensation actually paid is influenced by numerous factors, including but not limited to the timing of new grant issuances and outstanding grant vesting, share price volatility during the fiscal year, our mix of short-term and long-term metrics, and many other factors. In accordance with Item 402(v) of Regulation S-K, the Company is providing the following descriptions of the relationships between information presented in the Pay versus Performance table.
Cumulative TSR of the Company and Cumulative TSR of the Peer Group
The TSR of the Company, assuming an initial fixed $100 investment and computed in accordance with the requirements of Item 402(v) of Regulation S-K, was $208, $124, $123, and $92 for fiscal years 2020-2023, 2020-2022, 2020-2021, and 2020, respectively. The TSR of the Company’s Peer Group (the SP 400 MidCap Capital Goods Index), assuming an initial fixed $100 investment and computed in accordance with the requirements of Item 402(v) of Regulation S-K, was $190, $133, $150, and $118 for fiscal years 2020-2023, 2020-2022, 2020-2021, and 2020, respectively. Please see Note 7 and Note 8 above for additional information related to the computation of Company and peer group TSR.
Compensation Actually Paid and Cumulative Company TSR
The compensation actually paid to our first PEO, as computed in accordance with the requirements of Item 402(v) of Regulation S-K, was $15,203,422, $10,823,056, $13,917,645, and $2,420,223 for fiscal year 2023, 2022, 2021, and 2020, respectively. The compensation actually paid to our second PEO, as computed in accordance with the requirements of Item 402(v) of Regulation S-K, was $9,602,286 for fiscal year 2023. The average amount of compensation actually paid to the NEOs as a group (excluding Mr. Mitchell and, for fiscal year 2023, Mr. Saak), as computed in accordance with Item 402(v) of Regulation S-K, was $3,138,399, $2,520,280, $2,995,405, and $1,044,106 for fiscal year 2023, 2022, 2021, and 2020, respectively. The TSR of the Company, assuming an initial fixed $100 investment and computed in accordance with the requirements of Item 402(v) of Regulation S-K, was $208, $124, $123, and $92 for fiscal years 2020-2023, 2020-2022, 2020-2021, and 2020, respectively. Please see Note 7 above for additional information related to the computation of Company TSR.
Compensation Actually Paid and Company Net Income
The compensation actually paid to our first PEO, as computed in accordance with the requirements of Item 402(v) of Regulation S-K, was $15,203,422, $10,823,056, $13,917,645, and $2,420,223 for fiscal year 2023, 2022, 2021, and 2020, respectively. The compensation actually paid to our second PEO, as computed in accordance with the requirements of Item 402(v) of Regulation S-K, was $9,602,286 for fiscal year 2023. The average amount of compensation actually paid to the NEOs as a group (excluding Mr. Mitchell and, for fiscal year 2023, Mr. Saak), as computed in accordance with Item 402(v) of Regulation S-K, was $3,138,399, $2,520,280, $2,995,405, and $1,044,106 for fiscal year 2023, 2022, 2021, and 2020, respectively. The Company’s net income, as computed in accordance with Item 402(v) of Regulation S-K and reflected in the Company’s audited financial statements for the applicable fiscal year, was (in millions) $188.3, $401.1, $435.4, and $181.0 for fiscal year 2023, 2022, 2021, and 2020, respectively.
Compensation Actually Paid and Adjusted EPS
The compensation actually paid to our first PEO, as computed in accordance with the requirements of Item 402(v) of Regulation S-K, was $15,203,422, $10,823,056, $13,917,645, and $2,420,223 for fiscal year 2023, 2022, 2021, and 2020, respectively. The compensation actually paid to our second PEO, as computed in accordance with the requirements of Item 402(v) of Regulation S-K, was $9,602,286 for fiscal year 2023. The average amount of compensation actually paid to the NEOs as a group (excluding Mr. Mitchell and, for fiscal year 2023, Mr. Saak), as computed in accordance with Item 402(v) of Regulation S-K, was $3,138,399, $2,520,280, $2,995,405, and $1,044,106 for fiscal year 2023, 2022, 2021, and 2020, respectively. The Company’s adjusted EPS was $4.25, $7.87, $7.08, and $3.84 for fiscal year 2023, 2022, 2021, and 2020, respectively.
