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Filed by the Registrant ☒
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Filed by a party other than the Registrant ☐
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NOTICE OF 2025 ANNUAL MEETING OF
STOCKHOLDERS
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Meeting Information
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DATE AND TIME
Thursday, May 22, 2025 | 10:30 a.m., Central Daylight Time
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LOCATION
Virtual Meeting. You must register in advance at www.proxydocs.com/LII to attend. After registering, you will receive further instructions by email, including a unique link to access the 2025 Annual Meeting.
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Agenda
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Board Recommendation
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Proposal 1
To elect two Class III directors for a three-year term expiring at the 2028 Annual Meeting of Stockholders
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þ
FOR
each director nominee
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Proposal 2
To conduct an advisory vote to approve the compensation of our named executive officers as disclosed in this Proxy Statement
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þ
FOR
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Proposal 3
To ratify the appointment of Ernst Young LLP as our independent registered public accounting firm for the 2025 fiscal year
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þ
FOR
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Transact any other business that may properly come before the 2025 Annual Meeting in accordance with the terms of our Bylaws
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Voting Methods Available to You
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INTERNET
Visit the website on your Proxy Card
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BY MAIL
Mark, sign, date, and return your Proxy Card in the postage-paid envelope
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Your vote is important. Please submit your proxy or voting instructions as soon as possible | ||||||
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TELEPHONE
Call the number on your Proxy Card
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DURING THE MEETING
You must register in advance at
www.proxydocs.com/LII
to virtually attend and vote during the 2025 Annual Meeting
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Who May Vote
Our stockholders of record at the close of business on March 28, 2025, are entitled to notice of, and to vote at, the 2025 Annual Meeting
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Important Notice Regarding the Availability of Proxy Materials for the for the Stockholder Meeting to be Held on May 22, 2025:
The Proxy Statement, Proxy Card, and Annual Report on Form 10-K for the fiscal year ended December 31, 2024, accompany this Notice and are available at www.lennox.com and www.proxydocs.com/LII.
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By Order of the Board of Directors,
Monica M. Brown
Corporate Secretary
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| Page | |||||
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2024
PENSION BENEFITS
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DELINQUENT SECTION 16(A)
R
EPORTS
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A-
1
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GENERAL INFORMATION
REGARDING THE 2025 ANNUAL
MEETING OF STOCKHOLDERS
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| Virtual Annual Meeting Date and Time | |||||
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The 2025 Annual Meeting of Stockholders (the “Annual Meeting”) of Lennox International Inc. (NYSE: LII) (the “Company,” “Lennox,” “LII,” “us,” “we,” or “our”) will be held on Thursday, May 22, 2025, at 10:30 a.m., Central Daylight Time (“CDT”), in a virtual-only meeting format, using live webcast, which provides stockholders the ability to participate in the annual meeting, vote their shares, and ask questions via the voting site.
You will not be able to attend the Annual Meeting in person.
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We began mailing or making available this Proxy Statement and the accompanying Notice of 2025 Annual Meeting of Stockholders, Proxy Card, and Annual Report on Form 10-K to our stockholders on or about April 9, 2025, for the purpose of soliciting proxies on behalf of our Board of Directors (the “Board”).
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| How To Register For The Virtual Annual Meeting | ||||||||||||||
| Register at |
A link will be
emailed to you |
Enter the control
number on your Proxy Card, voting |
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| Ü | Ü | |||||||||||||||||||
| www.proxydocs.com/LII |
to access the
Annual Meeting |
instruction form or
Notice of Internet Availability |
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Matters to be Voted On
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| PROPOSAL | PROPOSAL | PROPOSAL | ||||||||||||||||||||||||||||||
| 1 |
To elect two Class III directors for a three-year term expiring at the 2028 Annual Meeting of Stockholders;
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2 | To conduct an advisory vote to approve the compensation of our named executive officers (“NEOs”) as disclosed in this Proxy Statement; and | 3 |
To ratify the appointment of Ernst Young LLP as our independent registered public accounting firm for the 2025
fiscal year.
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| EXECUTIVE SUMMARY |
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| About Lennox | |||||
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2024 Financial Highlights
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| EXECUTIVE SUMMARY |
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| Value Creation | |||||
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G
rowth Acceleration
with customer experience, higher attachment rate, and SOW gain
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R
esilient Margins
through efficiency and productivity
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E
xecution Consistency
with Lennox Unified Management System
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A
dvanced Technology
Portfolio to win heat pumps, while exploring MA
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T
alent Culture
,
driven by Core Values/Guiding Behaviors Pay-for-performance philosophy
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| Key Markets | |||||
| Home Comfort Solutions | ||||||||||||||||||||
| Heating and cooling systems provide top-tier comfort and efficiency for homeowners in the U.S. and Canada. Products include air conditioners, furnaces, heat pumps, thermostats, and air quality solutions. |
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| Building Climate Solutions | ||||||||||||||||||||
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HVAC and refrigeration solutions create comfortable environments in offices, schools, restaurants, and retail spaces. With rooftop units, chillers, commercial controls, and refrigeration systems, we help businesses maintain optimal climate conditions efficiently. | |||||||||||||
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| EXECUTIVE SUMMARY |
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| Differentiations | |||||
| Direct network |
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Deep customer relationships |
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Best-in-class
products |
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Digital leadership | |||||||||||||||||
| Recognition | |||||
| More Information @ www.lennox.com | |||||
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SASB Reporting
aligned with
Sustainability Accounting
Standards Board
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TCFD Reporting
aligned with Task
Force on Climate-related Financial
Disclosures
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EEO-1 Report
demographic
breakdown of workforce
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| EXECUTIVE SUMMARY |
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| Continuing Directors | |||||
| Name | Age | Start Date | Background | Indep. |
Committee
Memberships |
Other
Public Company Boards |
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| AC | BGC | CHRC | EC | ||||||||||||||||||||||||||
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Class III
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| Alok Maskara | 54 | 2022 |
Chief Executive Officer,
Lennox International Inc. |
CEO | ü | Franklin Electric Co., Inc. | |||||||||||||||||||||||
| Sivasankaran ("Soma") Somasundaram | 59 | 2024 |
President and CEO,
ChampionX |
ü | ü | ü | ChampionX | ||||||||||||||||||||||
| Class I | |||||||||||||||||||||||||||||
| John W. Norris, III | 67 | 2001 | Chairman, Environmental Funders Network | ü | ü | ü | |||||||||||||||||||||||
| Karen H. Quintos | 61 | 2014 |
Former EVP and Chief
Customer Officer, Dell Technologies Inc. |
ü | C | ü | Cummins Inc. | ||||||||||||||||||||||
| Shane D. Wall | 60 | 2020 |
Former Chief Technology
Officer and Global Head, HP Labs of HP Inc. |
ü | C | ü | |||||||||||||||||||||||
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Class II
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| Sherry L. Buck | 61 | 2019 |
CFO, W.L. Gore
Associates |
ü | C, F | ü | |||||||||||||||||||||||
| Todd J. Teske | 60 | 2011 |
Independent Chair of the Board
Former Chair, President and CEO, Briggs Stratton Corporation |
ü | F | C | |||||||||||||||||||||||
| Jon Vander Ark | 49 | 2024 | President and CEO, Republic Services, Inc. | ü | F | ü | Republic Services, Inc. | ||||||||||||||||||||||
| TENURE | BOARD COMPOSITION | INDEPENDENCE | ||||||
| EXECUTIVE SUMMARY |
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| Board Composition | |||||
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| Director Skills and Experience* | ||||||||||||||||||||||||||
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Financial/Accounting
Finance financial accounting expertise, including experience as a financial officer, accounting officer, controller, accountant, or auditor
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ü | ü | ü | |||||||||||||||||||||||
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Executive Leadership
Experience as a C-Suite executive of a public company
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ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||
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Manufacturing/Distribution
Experience managing large scale manufacturing or distribution operations
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ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||
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Environmental Sustainability/Climate-Related Risks
Experience in environmental sustainability/climate-related risks
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ü | ü | ü | ü | ü | |||||||||||||||||||||
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ERM
Experience in enterprise risk management, including identifying, assessing managing significant risks
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ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||
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Human Capital Management
Experience establishing and leading compensation and benefit programs, career development programs inclusion belonging efforts
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ü | ü | ü | ü | ü | |||||||||||||||||||||
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Marketing/Sales
Experience growing market share and revenue through a variety of go-to-market channels
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ü | ü | ü | ü | ü | |||||||||||||||||||||
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Cybersecurity
Work experience or a certification in cybersecurity or experience in security architecture
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ü | ü | ü | ü | ||||||||||||||||||||||
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Innovation/Technology
Experience in engineering, design technology innovation
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ü | ü | ü | ü | ü | |||||||||||||||||||||
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Strategic Planning/Oversight
Experience in strategic planning, developing business strategies mergers acquisitions in large organizations operating in multiple geographies
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ü | ü | ü | ü | ü | ü | ü | ü | ||||||||||||||||||
| EXECUTIVE SUMMARY |
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||||
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Governance Highlights
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| Independent Board Chair | Mandatory Board Retirement age: 75 | |||||||
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Majority Voting
(with carve-out in case of contested elections)
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Key Committees 100% independent
(Audit, Compensation, and Governance (nominating) Committees)
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| No Directors Attended Less than 75% of Meetings | Anti-Hedging and Pledging Policies | |||||||
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Board is
88% independent
(7 out of 8 continuing directors)
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No Material Related-Party Transactions | |||||||
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Regularly Scheduled Executive Sessions
of non-management directors
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3 Independent Board Members
added in the last 5 yrs
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Women hold Board leadership positions
(Governance (nominating) Committee Audit Committee chairs)
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Succession Planning
annually for key executives;
robust
CEO Succession Plan
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No Overboarding
(directors not permitted to serve on more than four other public company boards)
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Robust Stock Ownership Guidelines
(5x retainer for Directors; 6x annual base salary for CEO; and 3x annual base salary for executive vice presidents)
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Annual Self-Evaluation
by the Board and its committees
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One Class of Voting Stock | |||||||
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Individual evaluation
for director nominees
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No Poison Pill | |||||||
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Board Oversight
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| Oversight | ||||||||||||||
| Full Board of Directors | ||||||||||||||
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•
Culture Values
•
Financial Performance
•
Stockholder Value Creation
•
MA/Strategy
•
Key Strategic Initiatives
•
Stockholder Rights
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•
Front-end Digital Customer Experience
•
Advanced Technology Artificial Intelligence
•
Sustainable Product Development Innovation (including Product Safety)
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Technology Infrastructure Cybersecurity
•
Supply Chain Logistics
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•
CEO Succession Planning Compensation
•
Employee Engagement Survey
•
Energy, Waste, Water Refrigerant Management
•
Community Involvement Charitable Giving
•
Government Relations Regulations
•
ERM Oversight
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| ↓ | ||||||||||||||
| Board-level Committees | ||||||||||||||
| Audit Committee | Board Governance Committee | Comp HR Committee | ||||||||||||
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•
Climate Change Regulation SEC Disclosure
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Business Ethics, Compliance Anti-Corruption
•
Accounting Tax Transparency
•
ERM Processes Policies
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•
Stockholder Rights
•
Board Composition
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•
CEO Succession Planning Compensation
•
Executive Compensation
•
Employee Health Safety
•
Employee Engagement, Experience, Training Development (including Leadership Development)
•
Pay Equity, Benefits Pension
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||||||||||||
| Proposals Requiring Your Vote | ||||||||||||||
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Proposal 1
Election of Directors |
||||||||||||||
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Alok Maskara
Class III
Director
Age
54
Director since
2022
Committees
Executive
Skills
Executive Leadership
Manufacturing/Distribution
ERM
Human Capital Management
Marketing/Sales
Cybersecurity
Innovation/Technology
Strategic Planning/Oversight
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Experience
•
President and Chief Executive Officer (2022 – present)
•
Chief Executive Officer and Director, Luxfer Holdings PLC, a publicly traded international industrial company focused on advanced materials (2017 – 2022). He spearheaded the company’s transformation, led value-enhancing acquisitions and partnerships, and drove growth in profitability
•
President, Global Business Units, Pentair PLC, a leading provider of water treatment and sustainable applications, including its former Technical Solutions segment with over $2 billion in revenue (2008 – 2017)
•
General Manager, Residential Commercial Water, General Electric, a high-tech industrial company (2004 – 2008), which included significant experience in Lean Manufacturing
•
Engagement Manager, McKinsey and Company, a global management consulting firm (2000 – 2004), advising businesses on industrial turnarounds and driving growth through customer insights and segmentation
Other Public Company Boards
•
Franklin Electric Co., Inc., a publicly traded global leader in the production and marketing of systems and components for the movement of water and automotive fuels (2021 – present)
Education
•
B.Tech in Chemical Engineering, Indian Institute of Technology
•
M.S. in Chemical Engineering, University of New Mexico
•
M.B.A., Northwestern University Kellogg School of Management
Key Qualifications
Mr. Maskara has extensive experience in the areas of management, finance, accounting, manufacturing, and corporate governance. As CEO, he has a deep understanding of Lennox’s core businesses and end market dynamics. He successfully guided the company through the “Recover and Invest” phase of our Self-Help Transformation Plan and set the foundation for growth and expansion in the next phases. With his guidance, the team executed the turnaround of the commercial segment, increased margins through strategic pricing initiatives, and refreshed the company’s culture with a focus on accountability.
|
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Sivasankaran (“Soma”) Somasundaram
Class III
Independent Director
Age
59
Director since
2024
Committees
Audit
Board Governance
Skills
Executive Leadership
Manufacturing/Distribution
Sustainability
ERM
Human Capital Management
Innovation/Technology
Strategic Planning/Oversight
|
Experience
•
Director, President Chief Executive Officer, ChampionX (previously Apegy Corporation), a publicly traded global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies, and a spin-off of Dover Corporation (2018 – present)
•
President and Chief Executive Officer, Energy Segment (2013 – 2018); Executive Vice President, Energy Segment (2012 – 2013); Executive Vice President, Dover Fluid Management (2010 – 2011); President, Fluid Solutions Platform (2008 – 2010); and other executive leadership roles (2004 - 2008), Dover Corporation, an American conglomerate manufacturer of industrial products
•
Various global leadership roles at GLV Inc., a global mining, industrial, pulp and paper technology solutions supplier (2002 – 2004)
•
Various global leadership roles at Baker Hughes Inc., an energy products technology company (1996 – 2002)
Other Professional Experience and Community Involvement
•
2024 ALLY Energy GRIT Lifetime Achievement Award recipient
•
Member, National Petroleum Council, a federally chartered advisory committee (2023 – 2024)
•
Director, Magellan Midstream Partners, L.P. a publicly traded energy pipeline operator (2022 – 2023)
•
Named a “2022 Most Admired CEO” by the Houston Business Journal
•
2022 recipient, Energy Workforce Technology Council DEI Champion Award
Education
•
B.S., Mechanical Engineering, Anna University
•
M.S., Industrial Engineering, University of Oklahoma
Key Qualifications
Mr. Somasundaram brings a depth of business, executive leadership, transformative growth strategies, operational, talent development, mergers acquisitions, and strategic development experience to the Board, including his service as President and Chief Executive Officer of Apegy Corporation starting in 2018 and through its transformational merger in 2020 when the company changed its name to ChampionX Corporation and four years as President and Chief Executive Officer of Dover Energy, a segment of Dover Corporation, a public company. With his strong executive leadership and his technical experience and degrees in both Industrial and Mechanical Engineering, he is uniquely positioned to assist the Board in assessing and managing the types of risks and opportunities faced by the Company. Mr. Somasundaram’s international experience also adds a valuable global perspective to the Board, having lived and worked in India, Germany, Singapore, and Australia.
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John W. Norris, III
Class I
Independent Director
Age
67
Director since
2001
Committees
Board Governance
Compensation and Human Resources
Skills
Sustainability
Strategic Planning/Oversight
|
Experience
•
Founding Chairman of two philanthropic collaboratives, the Environmental Funders Network and Climate Change Funders Forum, both focused on strategically aligning resources to address climate adaptation and mitigation strategies in Maine (2005 – present)
•
Co-founder of Maine Network Partners, an organization supporting grassroots leaders and non-profit organizations in developing collaborative solutions to achieve greater impact (2007 – 2021)
•
Program Officer - Rural Tourism Development, Northern Forest Center (2006 – 2007)
•
Associate Director of Philanthropy, Maine Chapter of The Nature Conservancy (2001 – 2005)
•
Co-Founder and President of Borealis, Inc., an outdoor products manufacturer (1988 – 2000)
•
Peace Corps in Jamaica, small business development (1985 – 1987)
•
Graduate School Intern, Lennox Industries Inc. (a subsidiary of the Company) (1983)
•
Senior Credit Analyst, Fort Worth National Bank (1980 – 1982)
Other Professional Experience and Community Involvement
•
Director (2019 – present) and Chair (2020 – present), Camp Chippewa for Boys
•
Trustee (2008 – 2018) and Chair (2016 – 2018), Maine Chapter of the Nature Conservancy
•
Director, Northern Forest Canoe Trail (2013 – 2016)
•
Director, Maine Philanthropy Center (2005 – 2011)
•
Director, Maine Wilderness Guides Organization (2005 – 2011)
•
Director, Cape Elizabeth Education Foundation (2006 – 2009)
•
Director, Center for Cultural Exchange (2004 – 2005)
•
Completed Economist course on Climate Change and Business: Sustainability, Risk and the Push for Net Zero (2022)
Education
•
B.B.A. in Finance and Economics, Texas Christian University
•
M.B.A. in Organizational Behavior and Strategy, University of Michigan
Key Qualifications
Mr. Norris contributes substantial experience and knowledge on climate risk and environmental issues, benefitting the Company in its sustainability journey. Mr. Norris also provides organizational development insights from founding both non-profit and for-profit companies.
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Karen H. Quintos
Class I
Independent Director
Age
61
Director since
2014
Committees
Board Governance (Chair)
Executive
Skills
Executive Leadership
Manufacturing/Distribution
Sustainability
ERM
Marketing/Sales
Strategic Planning/Oversight
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Experience
•
Retired; Executive Vice President and Chief Customer Officer, including responsibility for ESG and Diversity (2016 – 2020); Senior Vice President and Chief Marketing Officer (2010 – 2016); Vice President of Public Sector Marketing and North America Commercial (2008 – 2010); and other executive roles in services, support, and supply chain management (2000 – 2008), Dell Technologies Inc., a technology leader that provides essential infrastructure for organizations to build their digital future, transform IT, and protect their most important information
•
Vice President, Operations Technology, Citigroup North America Inc., a financial services corporation (1997 – 2000)
•
Director of Packaging (1996 – 1997) and Director of Global Supply Chain Management (1993 – 1996), Merck Co., a pharmaceutical company
Other Public Company Boards
•
Cummins Inc., a global power technology leader that designs, engineers, manufactures, distributes, and services engines and related technologies
Other Professional Experience and Community Involvement
•
Board of Trustees, Pennsylvania State University
•
Chair of the Board of Visitors of Pennsylvania State University Smeal’s College of Business, where she was a 2014 recipient of the Smeal College of Business’ highest honor, the Distinguished Alumni Award
•
Director, the National Center for Missing and Exploited Children
•
Director, TGEN (Translational Genomics Research Institute)
Education
•
B.S. in Supply Chain Management, Pennsylvania State University
•
M.B.A. in Marketing and International Business, New York University
Key Qualifications
Ms. Quintos’ supervisory experience in the areas of marketing, branding, communications, sustainability, operations, and supply chain management brings broad knowledge of these issues to the Board.
|
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Shane D. Wall
Class I
Independent Director
Age
60
Director since
2020
Committees
Compensation and Human
Resources (Chair)
Executive
Skills
Executive Leadership
Manufacturing/Distribution
ERM
Marketing/Sales
Cybersecurity
Innovation/Technology
Strategic Planning/Oversight
|
Experience
•
Retired; Special Advisor to Chief Executive Officer (2020 – 2023); Chief Technology Officer and Global Head (2015 – 2020), HP Labs of HP Inc., a global information technology company
•
Chief Technology Officer and Senior Vice President of Printing and Personal Systems, Hewlett-Packard Company, a predecessor of HP Inc. (2012 – 2015)
•
Several senior technology and general management positions, Intel Corporation, a technology company (1998 – 2012)
•
Co-Founder and Chief Technology Officer of PrintPaks, a spin-out of Hewlett-Packard Company (1995 – 1998)
•
Various engineering and management roles, Hewlett-Packard Company (1986 – 1995)
Other Professional Experience and Community Involvement
•
Partner, Fusion Fund, an early stage venture capital firm focused on industrial, enterprise, and healthcare technologies
•
Senior Advisor and Board Member, Arsenal Capital Partners, a specialized private equity firm focused on specialty industrials and healthcare
Education
•
B.S. in Computer Engineering, Oregon State University
Key Qualifications
An experienced former Chief Technology Officer, Mr. Wall contributes extensive technology and cybersecurity experience, as well as meaningful experience in executive leadership and diverse business development within large global companies.
|
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Sherry L. Buck
Class II
Independent Director
Age
61
Director since
2019
Committees
Audit – Financial Expert Chair
Executive
Skills
Financial Accounting
Executive Leadership
Manufacturing/Distribution
ERM
Human Capital Management
Strategic Planning/Oversight
|
Experience
•
Chief Financial Officer, W.L. Gore Associates Inc., a multinational advanced materials company providing solutions for medical device, fabric laminates, aerospace, pharmaceuticals, mobile electronics, and other applications across diverse industries (2021 – present)
•
Senior Vice President and Chief Financial Officer, Waters Corporation, a specialty measurement company serving the life, materials, and food sciences industries (2017 – 2020)
•
Vice President, Chief Financial Officer, Libbey Inc., a global manufacturer and marketer of glass tableware products (2012 – 2016)
•
Senior finance and operating leadership roles, Whirlpool Corporation, a leading global appliance manufacturer (1993 – 2012)
•
Director, Overseas Accounting and Internal Audit Manager, TransWorld Airlines, a major airline (1988 – 1992)
•
Senior Auditor, Price Waterhouse, a public accounting firm (1985 – 1988)
Education
•
B.S. in Accounting, University of Missouri
Key Qualifications
Ms. Buck contributes extensive financial and leadership experience gained from her long tenure as a CFO. She adds industry expertise through her positions in large global manufacturing companies.
|
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Todd J. Teske
Class II
Independent Chair
Age
60
Director since
2011
Committees
Audit – Financial Expert
Executive (Chair)
Skills
Financial/Accounting
Executive Leadership
Manufacturing/Distribution
Sustainability
ERM
Human Capital Management
Marketing/Sales
Cybersecurity
Innovation/Technology
Strategic Planning/Oversight
|
Experience
•
Independent Board Chair (2022 – present)
•
Interim CEO (March 23, 2022 – May 9, 2022)
•
Lead Independent Director (2015 – 2022)
•
Chair, President, and Chief Executive Officer (2010 – 2020); President and Chief Operating Officer (2008 – 2009); Executive Vice President and Chief Operating Officer (2005 – 2008); and other senior-level positions including President of its power products business, head of corporate development and Controller (1999 – 2005), Briggs Stratton Corporation, a manufacturer of gasoline engines for outdoor power equipment, portable generators, and lawn and garden powered equipment and related accessories
•
Briggs Stratton filed a voluntary petition for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in July 2020. In September 2020, Briggs Stratton was acquired and exited bankruptcy
Other Professional Experience and Community Involvement
•
Director, Badger Meter, Inc., a publicly traded leading innovator, manufacturer and marketer of flow measurement and control products (2009 – 2020)
•
Licensed CPA (inactive)
Education
•
B.S. in Accounting, University of Wisconsin Oshkosh
•
Masters of Management, Northwestern University Kellogg School of Management
Key Qualifications
Mr. Teske brings extensive executive leadership, corporate governance, and industry experience as a former manufacturing-company CEO to his service as Chair of the Board. As well, as a former corporate controller, Mr. Teske contributes knowledge in the areas of finance and accounting.
|
|||||||||||||
|
Jon Vander Ark
Class II
Independent Director
Age
49
Director since
2024
Committees
Audit – Financial Expert
Compensation and Human Resources
Skills
Financial/Accounting
Executive Leadership
Manufacturing/Distribution
Sustainability
ERM
Human Capital Management
Marketing/Sales
Cybersecurity
Innovation/Technology
Strategic Planning/Oversight
|
Experience
•
President and Director (2019 – present) and Chief Executive Officer (2021 – present); Executive Vice President, Chief Operating Officer (2018 – 2019); Executive Vice President, Operations (2016 – 2017); and Executive Vice President, Chief Marketing Officer (2013 – 2016), Republic Services, Inc., an environmental services company
•
McKinsey Company, a global management consulting firm (2000 – 2012)
Other Professional Experience and Community Involvement
• Director, Board of Chances for Children, a non-profit supporting children in Haiti
Education
•
B.A. in Philosophy and Political Science, Calvin University
•
J.D., Harvard Law School
Key Qualifications
Mr. Vander Ark contributes to our Board extensive strategic growth experience, operational skills, and accomplishments implementing sustainability initiatives from his executive leadership at a large publicly traded company. Prior to joining Republic, Mr. Vander Ark’s role in consulting exposed him to a wide range of industries including automotive, logistics, and consumer durables. He developed deep expertise in marketing and sales serving leading global companies.
|
|||||||||||||
|
Janet K. Cooper
Class III
Independent Director
Age
71
Director since
1999
Committees
Audit – Financial Expert
Board Governance
Skills
Financial/Accounting
Executive Leadership
Sustainability
ERM
Cybersecurity
Innovation/Technology
Strategic Planning/Oversight
|
Experience
•
Retired; Senior Vice President and Treasurer, Qwest Communications International Inc. (“Qwest”), a telecommunications carrier (2002 – 2008)
•
Chief Financial Officer and Senior Vice President, McDATA Corporation, a global leader in open storage networking solutions (2001 – 2002)
•
Senior Vice President, Finance, Qwest (2000 – 2001)
•
Various senior level finance positions, including Vice President, Finance and Controller, and Vice President and Treasurer, US West Inc., a regional Bell operating company and predecessor of Qwest (1998 – 2000)
•
Various capacities, including Vice President, Treasurer and Tax and Vice President, Treasurer, the Quaker Oats Company, an American food conglomerate (1978 – 1998)
Other Professional Experience and Community Involvement
•
Director, The Toro Company, a manufacturer of equipment for turf and landscape maintenance, snow and ice management, underground utility construction, rental, and specialty construction (1994 – 2024)
•
Trustee, Rose-Hulman Institute of Technology, an engineering and technology college (2015 – present)
•
Director, CPI Aerostructures, Inc., a publicly traded aircraft component manufacturer (2019 – 2020)
•
Director, Resonant Inc., a publicly traded software, intellectual property, and services platform for filter designs for radio frequency front ends (2014 – 2019)
•
National Association of Corporate Directors (NACD) Leadership Fellowship
•
Diligent Climate Leadership Certificate program
•
Certificate in Cybersecurity Oversight, Carnegie Mellon University Software Engineering Institute.
Education
•
B.S. in Math/Computer Science Economics, University of Illinois Urbana-Champaign
•
M.S. in Applied Math, University of Illinois Urbana-Champaign
•
M.B.A., University of Chicago Booth School of Business
Key Qualifications
Ms. Cooper contributes a substantial financial background and extensive experience in capital markets, tax, accounting matters, and pension plan investments in her service as a director. Her leadership roles on boards and management teams of U.S. public companies allow her to provide valuable insight.
|
|||||||||||||
|
Gregory T. Swienton
Class II
Independent Director
Age
75
Director since
2010
Committees
Audit – Financial Expert
Compensation and Human Resources
Skills
Financial/Accounting
Executive Leadership
Manufacturing/Distribution
Sustainability
ERM
Human Capital Management
Marketing/Sales
Cybersecurity
Innovation/Technology
Strategic Planning/Oversight
|
Experience
•
Retired; Adviser (2013 – 2015); Executive Chairman (2013); Chairman (2002 – 2013); Chief Executive Officer (2000 – 2013); and President and Chief Operating Officer (1999 – 2000), Ryder System, Inc., a supplier of transportation, logistics and supply chain management solutions
•
Senior Vice President for various business units, Burlington Northern Santa Fe Corporation (BNSF), a freight transportation company (1995 – 1999)
•
Executive Vice President-Intermodal Business Unit, Burlington Northern Railroad Company, a predecessor of BNSF (1994 – 1995)
•
Executive Director-Europe and Africa (1991 – 1994) and Managing Director—Western and Eastern Europe (1988 – 1990), DHL Worldwide Express, a global logistics and international shipping company (“DHL”)
•
Regional Vice President, DHL Airways, Inc., a division of DHL (1982 – 1988)
•
Various national account, sales, and marketing positions, ATT and Illinois Bell Telephone Company, related telecommunications companies (1971 – 1982)
Other Professional Experience and Community Involvement
•
Director, CRST/Hillcrest Holding, a privately held transportation and logistics company
•
Director, L3 Harris Technologies, Inc., a publicly traded supplier of communications and information technology products (2000 – 2019)
•
Chairman of the Board of Trustees, St. Thomas University, a private university in Miami, Florida (2001 – 2013)
•
Past recipient of National Safety Council’s highest honor, the Green Cross for Safety medal, in recognition of career-long commitment to workplace safety
Education
•
B.B.A., Loyola University of Chicago
•
M.B.A., University of Chicago
Key Qualifications
Mr. Swienton contributes extensive international business experience, deep expertise in global distribution, experience in growth initiatives, and supply chain innovations from his executive leadership at transportation companies.
|
|||||||||||||
|
Proposal 2
Advisory Vote to Approve the Compensation of Our Named Executive Officers |
||
|
Proposal 3
Ratification of the Appointment of Ernst Young LLP
as Our Independent Registered Public
Accounting Firm for the 2025 Fiscal Year
|
||
| 2024 | 2023 | |||||||
|
Audit Fees
(1)
|
$ | 3,266 | $ | 3,752 | ||||
|
Audit-Related Fees
(2)
|
— | — | ||||||
|
Tax Fees
(3)
|
24 | 17 | ||||||
|
Other Fees
(4)
|
10 | — | ||||||
| Total | $ | 3,300 | $ | 3,769 | ||||
| Audit Committee Report | ||
| Gregory T. Swienton (Chair) | ||
| Sherry L. Buck | ||
| Janet K. Cooper | ||
| Todd J. Teske | ||
| Jon Vander Ark | ||
|
March 20, 2025
|
||
| Corporate Governance | ||
|
Personal Characteristics |
•
leadership
•
integrity
•
interpersonal skills and effectiveness
•
accountability
•
high performance standards
|
||||||
|
Business Attributes |
•
high levels of leadership experience in business
•
substantial knowledge of issues faced by publicly traded companies
•
experience in positions demonstrating expertise, including on other boards of directors
•
financial acumen
•
industry and Company knowledge
•
diversity of viewpoints
•
experience in international markets and strategic planning
|
||||||
|
Independence |
•
compliance with the standards contained in the NYSE listing standards, the Exchange Act, and any other applicable laws or regulations regarding independence
|
||||||
|
Professional Responsibilities |
•
willingness to commit the time required to fully discharge his or her responsibilities
•
commitment to attend meetings
•
ability and willingness to represent the stockholders’ long- and short-term interests
•
awareness of our responsibilities to our customers, employees, suppliers, regulatory bodies, and the communities in which we operate
•
willingness to advance his or her opinions
|
||||||
|
Governance Responsibility |
•
ability to understand, and distinguish between, the roles of governance and management
|
||||||
|
Availability and Commitment |
•
availability based on the number of commitments to other entities existing or contemplated by the candidate
|
||||||
| AUDIT COMMITTEE | |||||
| Committee Chair: | Responsibilities: | ||||
| Sherry L. Buck | The Audit Committee assists the Board in fulfilling its oversight responsibilities relating to the integrity of our financial statements and related systems of internal controls, our compliance with legal and regulatory requirements, the independent registered public accounting firm’s qualifications, independence and performance and the performance of our internal audit function. The Audit Committee also has the direct responsibility for the appointment, compensation, retention, and oversight of our Independent Accountants. | ||||
| Other Committee Members: | |||||
| Janet K. Cooper | |||||
| Soma Somasundaram | |||||
| Gregory T. Swienton | About the Members: | ||||
| Todd J. Teske |
•
All members are independent financially literate in accordance with NYSE requirements
•
Ms. Buck, Ms. Cooper, Mr. Teske, Mr. Swienton, and Mr. Vander Ark are audit committee financial experts as defined by the SEC
•
None of the members serve on the audit committees of more than three public companies
|
||||
| Jon Vander Ark | |||||
|
Meetings Held in 2024:
|
|||||
|
9
|
|||||
| BOARD GOVERNANCE COMMITTEE | |||||
| Committee Chair: | Responsibilities: | ||||
| Karen H. Quintos | The Board Governance Committee assists the Board by identifying individuals qualified to become Board members, developing qualification criteria for Board membership, making recommendations to the Board regarding the appropriate size of the Board and appointment of members to the Board’s committees, developing and recommending to the Board any changes to the Corporate Governance Guidelines and Code of Business Conduct applicable to our Company, and overseeing the evaluation of our Board and each of the Board’s committees. The Board Governance Committee also conducts an individual peer review for any directors who are scheduled to be re-nominated. | ||||
| Other Committee Members: | |||||
| Janet K. Cooper | |||||
| John W. Norris, III | |||||
| Soma Somasundaram | |||||
| About the Members: | |||||
|
Meetings Held in 2024:
|
•
All members are independent
|
||||
|
10
|
|||||
| COMPENSATION HUMAN RESOURCES COMMITTEE | |||||
| Committee Chair: | Responsibilities: | ||||
| Shane D. Wall |
The Compensation and Human Resources Committee determines the compensation philosophy and oversees the compensation programs for the Company’s executive officers and the non-employee members of the Board. The Committee’s responsibilities include oversight of the short- and long-term incentive plans and senior management succession plans. The Committee also reviews the funding requirements and investment policies for the defined benefit and defined contribution retirement plans, and the performance of investment funds, investment advisors, and investment managers under those plans. The Committee may delegate its responsibilities to a subcommittee comprised of Committee members.
Although the Committee seeks input from the CEO on various elements of executive compensation, the Committee determines and approves the final compensation elements and amounts to be provided to the Company’s NEOs. The independent members of the Board (rather than the Committee) have direct responsibility for approving CEO and Board compensation; however, the Committee reviews and recommends proposed changes to CEO and Board compensation to the independent members of the Board for approval. See “Executive Compensation — Compensation Discussion and Analysis” for information concerning the Committee’s philosophy and objectives in overseeing executive compensation. |
||||
| Other Committee Members: | |||||
| John W. Norris, III | |||||
| Gregory T. Swienton | |||||
| Jon Vander Ark | |||||
|
Meetings Held in 2024:
|
|||||
| 5 | |||||
| Independent Compensation Consultant: | |||||
| Meridian Compensation Partners, LLC | |||||
| About the Members: | |||||
|
•
All members are independent as defined for compensation committee members by NYSE
|
|||||
|
•
All members are “non-employee directors” under Section 16b-3 of the Exchange Act
|
|||||
| EXECUTIVE COMMITTEE | |||||
| Committee Chair: | Responsibilities: | ||||
| Todd J. Teske | The Executive Committee aids the Board in handling any matters that arise between Board meetings and, in the opinion of the Chair of the Board, should not be postponed until the next scheduled meeting of the Board. | ||||
| Other Committee Members: | |||||
| Alok Maskara | |||||
| Sherry L. Buck | |||||
| Karen H. Quintos | |||||
| Shane D. Wall | |||||
|
Meetings Held in 2024:
|
|||||
| 0 | |||||
| Director Compensation | ||
| Board Retainer for Each Director | Board Leadership Retainers | Equity Award for Each Director | |||||||||||||||
| $105,000 payable quarterly in cash with the option to receive a portion in Company common stock. |
•
Chair of the Board
•
Audit Chair
•
Compensation and Human Resources Chair
•
Board Governance Chair
•
Public Policy Chair
|
$ 150,000
$ 25,000
$ 20,000
$ 20,000
$ 20,000
|
$150,000 annual stock grant | ||||||||||||||
| Name | Fees Earned or Paid in Cash ($)(1) |
Stock
Awards ($)(2) |
Total ($) | ||||||||
| Sherry L. Buck | 105,000 | 149,804 | 254,804 | ||||||||
| Janet K. Cooper | 125,000 | 149,804 | 274,804 | ||||||||
| John W. Norris, III | 105,000 | 149,804 | 254,804 | ||||||||
| Karen H. Quintos | 125,000 | 149,804 | 274,804 | ||||||||
| Kim K.W. Rucker | 31,250 | 333,147 | 364,397 | ||||||||
| Soma Somasundaram | 105,000 | 149,804 | 254,804 | ||||||||
| Gregory T. Swienton | 130,000 | 149,804 | 279,804 | ||||||||
| Todd J. Teske | 255,000 | 149,804 | 404,804 | ||||||||
| Jon Vander Ark | 78,750 | — | 78,750 | ||||||||
| Shane D. Wall | 125,000 | 149,804 | 274,804 | ||||||||
| Grant Date |
Common Stock Granted in 2024 (#)
|
Grant Date Fair Value Per Share ($)(a) | Grant Date Fair Value ($) | ||||||||||||||
| Each Non-Employee Director | May 16, 2024 | 305 | 491.16 | 149,804 | |||||||||||||
|
Name
|
Aggregate RSUs Outstanding as
of December 31, 2024 (# of shares)
|
|||||||
| Sherry L. Buck | 567 | |||||||
| Janet K. Cooper | 567 | |||||||
| John W. Norris, III | 567 | |||||||
| Karen H. Quintos | 567 | |||||||
| Kim K.W. Rucker | — | |||||||
| Soma Somasundaram | — | |||||||
| Gregory T. Swienton | 567 | |||||||
| Todd J. Teske | 567 | |||||||
| Jon Vander Ark | — | |||||||
| Shane D. Wall | 567 | |||||||
| Executive Officers | ||
| Alok Maskara | 54 | Chief Executive Officer | ||||||
|
•
Chief Executive Officer (2022 - present)
•
Chief Executive Officer, Luxfer Holdings PLC (2017 - 2022)
•
Director, Franklin Electric Co., Inc. (2021 - present)
|
||||||||
| Michael P. Quenzer | 47 | Executive Vice President, Chief Financial Officer | ||||||
|
•
Executive Vice President and Chief Financial Officer (2024 - present)
•
Vice President, Financial Planning Analysis and Investor Relations (2023)
•
Chief Financial Officer, Commercial segment (2016 - 2022)
|
||||||||
| Gary S. Bedard | 60 | Executive Vice President President, Home Comfort Solutions | ||||||
|
•
Executive Vice President President, Home Comfort Solutions (2023 - present)
•
Executive Vice President President, Worldwide Refrigeration business (2017 - 2022)
|
||||||||
| Prakash Bedapudi | 58 | Executive Vice President, Chief Technology Officer | ||||||
|
•
Executive Vice President, Chief Technology Officer (2008 - present)
|
||||||||
| Monica M. Brown | 52 | Executive Vice President, Chief Legal Officer and Secretary | ||||||
|
•
Executive Vice President, Chief Legal Officer and Secretary (January 2025 - present)
•
Vice President, Deputy General Counsel, and Assistant Secretary (2023 - 2024)
•
Assistant General Counsel, Securities and Assistant Secretary (2021 - 2023)
•
Assistant General Counsel, Worldwide Refrigeration (2016 - 2021)
|
||||||||
| Chris A. Kosel | 58 | Vice President, Chief Accounting Officer and Controller | ||||||
|
•
Vice President, Chief Accounting Officer and Controller (2017 - present)
|
||||||||
| Joseph S. Nassab | 58 | Executive Vice President President, Building Climate Solutions | ||||||
|
•
Executive Vice President President, Building Climate Solutions (2022 - present)
•
Vice President and General Manager, Allied Air (2010 - 2022)
|
||||||||
| Daniel M. Sessa | 60 | Executive Vice President, Chief Human Resources Officer | ||||||
|
•
Executive Vice President, Chief Human Resources Officer (2007 - present)
|
||||||||
| Executive Compensation | ||
| NEO | Title | ||||
| Alok Maskara | President and Chief Executive Officer | ||||
| Michael P. Quenzer | Executive Vice President, Chief Financial Officer | ||||
| Gary S. Bedard | Executive Vice President and President, Home Comfort Solutions | ||||
| Daniel M. Sessa | Executive Vice President, Chief Human Resources Officer | ||||
| John D. Torres | Former Executive Vice President, Chief Legal Officer and Corporate Secretary | ||||
| Revenue | Operating Profit Margin |
Adjusted Net Income
(1)
|
Operating Cash Flow | ||||||||
| 7% Increase | + 350 Basis Points | 26% Increase | 28% Increase | |||||||||||||||||
| What We Do | What We Don’t Do | |||||||||||||||||||||||||
| þ | Median compensation philosophy | ý | No excise tax gross-ups | |||||||||||||||||||||||
| þ | Pay-for-performance linkage | ý | No hedging of Company stock | |||||||||||||||||||||||
| þ | Long-term balance in compensation structure | ý | No pledging of Company stock | |||||||||||||||||||||||
| þ | Use of independent compensation consultant | ý | No dividends on equity awards in annual grant | |||||||||||||||||||||||
| þ | Annual risk assessment | ý | No repricing of stock appreciation rights or options | |||||||||||||||||||||||
| þ | Rigorous stock ownership guidelines | ý | No cash buyouts of underwater stock appreciation rights or options | |||||||||||||||||||||||
| þ | Clawback policies and provisions | ý | No significant annual perquisites | |||||||||||||||||||||||
| þ | Non-Competition / Non-Solicitation restrictions | |||||||||||||||||||||||||
| þ | Annual review of share utilization | |||||||||||||||||||||||||
| þ | Regular market assessment of our peer group | |||||||||||||||||||||||||
| þ | Change-in-Control double-trigger for severance and equity vesting | |||||||||||||||||||||||||
| þ | Minimum vesting requirement of at least one year for 95% or more of equity incentive plan awards | |||||||||||||||||||||||||
| Lennox CEO Pay | Lennox Performance | |||||||||||||
| Executive Compensation Elements |
Attract
Top Talent |
Retain
Motivate Top Talent |
Achieve
Short- Term Goals |
Achieve
Long- Term Goals |
Maintain
Market Competitiveness |
Pay for
Performance |
||||||||||||||
| Base Salary | ü | ü | ü | |||||||||||||||||
| Short-Term Incentive Program | ü | ü | ü | ü | ü | |||||||||||||||
| Long-Term Incentive Program: | ||||||||||||||||||||
| Performance Share Units | ü | ü | ü | ü | ü | |||||||||||||||
| Restricted Stock Units | ü | ü | ü | |||||||||||||||||
| Stock Appreciation Rights | ü | ü | ü | ü | ü | ü | ||||||||||||||
| Perquisites | ü | ü | ||||||||||||||||||
| Benefit Programs | ü | ü | ||||||||||||||||||
|
•
A. O. Smith Corporation
(AOS)
|
•
Hubbell Inc.
(HUBB)
|
•
Regal Rexnord Corporation
(RRX)
|
||||||
|
•
Acuity Brands, Inc.
(AYI)
|
•
IDEX Corporation
(IEX)
|
•
Rockwell Automation, Inc.
(ROK)
|
||||||
|
•
Dover Corporation
(DOV)
|
•
Masco Corporation
(MAS)
|
•
Snap-On Incorporated
(SNA)
|
||||||
|
•
Flowserve Corporation
(FLS)
|
•
Owens Corning
(OC)
|
•
The Timken Company
(TKR)
|
||||||
|
•
Fortune Brands Innovations, Inc.
(FBIN)
|
•
Pentair, Inc.
(PNR)
|
•
Xylem Inc.
(XYL)
|
||||||
| Name |
Base Salary as of January 1, 2024
|
Increase Effective
April 1, 2024
|
Base Salary as of April 1, 2024
(1)
|
Base Salary Earned in 2024
|
|||||||||||||
| Alok Maskara | $1,075,000 | 7.0 | % | $1,150,000 | $1,131,250 | ||||||||||||
|
Michael P. Quenzer
(2)
|
550,000 | — | 550,000 | 550,000 | |||||||||||||
| Gary S. Bedard | 560,000 | 3.6 | % | 580,000 | 575,000 | ||||||||||||
| Daniel M. Sessa | 570,000 | 3.5 | % | 590,000 | 585,000 | ||||||||||||
| John D. Torres | 550,000 | 3.6 | % | 570,000 | 565,000 | ||||||||||||
| Base Salary $ | r | STI Target % | r |
Achieved Financial
Performance Factor (0% - 225%) |
= |
STI Calculated
Amount $ |
||||||||||||||||||||||||||||||||
| NEO STI Target $ Amount | ||||||||||||||||||||||||||||||||||||||
|
75% of STI
Calculated Amount |
« |
25% of STI
Calculated Amount subject to Individual Performance Modifier (0% - 225%) |
= | STI Payout $ | ||||||||||||||||||||||||||||||||||
|
Company NEOs
(1)
: Alok Maskara, Michael P. Quenzer, Daniel M. Sessa, John D. Torres
|
||||||||||||||||||||
| Payout Opportunity as a % of Target | ||||||||||||||||||||
| 50% | 100% | 225% | ||||||||||||||||||
| Metric | Weight | Threshold | Target | Maximum | Performance | |||||||||||||||
|
Company Core Net Income
(2)
|
50% | $545,600 | $682,000 | $795,700 | $808,396 | |||||||||||||||
|
Company Free Cash Flow
(3)
|
30% | 367,500 | 525,000 | 700,000 | 784,190 | |||||||||||||||
|
Company Core Revenue
(4)
|
20% | 4,500,000 | 5,000,000 | 5,500,000 | 5,344,437 | |||||||||||||||
|
Segment NEO
: Gary S. Bedard
(1)
|
||||||||||||||||||||
| Payout Opportunity as a % of Target | ||||||||||||||||||||
| 50% | 100% | 225% | ||||||||||||||||||
| Metric | Weight | Threshold | Target | Maximum | Performance | |||||||||||||||
|
HCS Segment Profit
(5)
|
50% | $549,100 | $668,400 | $760,700 | $758,906 | |||||||||||||||
|
HCS Segment Controllable Cash Flow
(6)
|
30% | 463,400 | 662,000 | 832,100 | 770,817 | |||||||||||||||
|
HCS Segment Revenue
(7)
|
20% | 3,055,500 | 3,395,000 | 3,734,500 | 3,656,305 | |||||||||||||||
|
2024 STI Target
|
2024 STI Payout
|
|||||||||||||||||||
| Name | % of Base Salary | $ | % of Target | $ | ||||||||||||||||
| Alok Maskara | 120 | % | $1,357,500 | 217 | % | $2,948,762 | ||||||||||||||
| Michael P. Quenzer | 75 | % | 412,500 | 217 | % | 896,033 | ||||||||||||||
| Gary S. Bedard | 75 | % | 431,250 | 211 | % | 909,334 | ||||||||||||||
| Daniel M. Sessa | 75 | % | 438,750 | 217 | % | 953,053 | ||||||||||||||
| John D. Torres | 75 | % | 423,750 | 217 | % | 920,470 | ||||||||||||||
| Target Award Value for February 2024 Awards | Number of Awards Granted in February 2024 | |||||||||||||||||||||||||||||||
| Name | PSUs | RSUs | SARs | Total |
PSUs
(1)
|
RSUs
(1)
|
SARs
(2)
|
Total | ||||||||||||||||||||||||
| Alok Maskara | $2,850,000 | $1,710,000 | $1,140,000 | $5,700,000 | 6,482 | 3,889 | 8,360 | 18,731 | ||||||||||||||||||||||||
| Michael P. Quenzer | 500,000 | 300,000 | 200,000 | 1,000,000 | 1,137 | 682 | 1,467 | 3,286 | ||||||||||||||||||||||||
| Gary S. Bedard | 650,000 | 390,000 | 260,000 | 1,300,000 | 1,478 | 887 | 1,907 | 4,272 | ||||||||||||||||||||||||
| Daniel M. Sessa | 600,000 | 360,000 | 240,000 | 1,200,000 | 1,365 | 819 | 1,760 | 3,944 | ||||||||||||||||||||||||
| John D. Torres | 600,000 | 360,000 | 240,000 | 1,200,000 | 1,365 | 819 | 1,760 | 3,944 | ||||||||||||||||||||||||
| Metric | Weight | Rationale for Selection | Measurement Period | Threshold | Target | Maximum | |||||||||||||||||
| ROIC | 50% | Measures efficient use of capital: higher ROIC correlates to greater cash flow | 3-year weighted average (20% lowest year, 40% other two years) | No payout occurs unless ROIC exceeds the Company’s estimated cost of capital. Target payout occurs at approximately three times the Company’s estimated cost of capital | |||||||||||||||||||
|
Company Core Net Income
(1)
|
50% | Measures profitability: higher Company core net income correlates with higher earnings per share | 3-year compound annual growth rate | Target payout requires high single digit Company core net income compound annual growth rate | |||||||||||||||||||
| Payout as a % of Target Award | 50% | 100% | 200% | ||||||||||||||||||||
| Metric | Weight | Measurement Period | Threshold | Target | Maximum | Performance | |||||||||||||||||||||||||||||||||||
|
ROIC
(1)
|
50% | 3-year weighted average (20% lowest year, 40% other two years) | 20% | 30% | 40% | 48.4 | % | ||||||||||||||||||||||||||||||||||
|
Company Core Net Income
(2)
|
50% | 3-year compound annual growth rate | 6% | 12% | 20% | 20.1 | % | ||||||||||||||||||||||||||||||||||
| Payout as a % of Target Award | 50% | 100% | 200% | 200.0 | % | ||||||||||||||||||||||||||||||||||||
| Name | Ownership Requirement as a Multiple of Base Salary | Total Number of Shares and Unvested RSUs |
Stock Ownership as Multiple of Base Salary
(1)
|
|||||||||||||||||
| Alok Maskara | 6X | 12,861 | 6.0X | |||||||||||||||||
| Michael P. Quenzer | 3X | 2,460 | 2.4X | |||||||||||||||||
| Gary S. Bedard | 3X | 19,600 | 18.1X | |||||||||||||||||
| Daniel M. Sessa | 3X | 31,634 | 28.8X | |||||||||||||||||
| John D. Torres | 3X | 4,269 | 4.0X | |||||||||||||||||
| Plan | Type | Purpose | |||||||||||||||
|
Supplemental Restoration
Retirement Plan |
Non-Qualified Defined Contribution | Provide market-competitive retirement benefit by allowing contributions that could not otherwise occur because of limitations on compensation under federal tax rules | |||||||||||||||
| Plan | Type | Purpose | |||||||||||||||
| Life Insurance Plan | Company-Sponsored Life Insurance | Provide market-competitive life insurance benefits. $3 million in coverage for our CEO. NEO plan includes base salary plus most recent bonus paid with a minimum of $1 million | |||||||||||||||
| Supplemental Retirement Plan | Non-Qualified Defined Benefit | Closed legacy plan | |||||||||||||||
|
Shane D. Wall (Chair)
John W. Norris, III
Soma Somasundaram
Gregory T. Swienton
March 20, 2025
|
|||||
|
Name and
Principal Position |
Year |
Salary
($) |
Bonus ($) |
Stock Awards
($)
(1)
|
Option Awards
($)
(2)
|
Non-Equity Incentive Plan Compensation ($) |
Change in Pension Value and Nonqualified Deferred Compensation Earnings
($)
(3)
|
All Other Compensation ($)
(4)
|
Total
($) |
|||||||||||||||||||||||
| Alok Maskara | 2024 | 1,131,250 | — | 4,429,662 | 1,125,423 | 2,948,762 | — | 272,814 | 9,907,911 | |||||||||||||||||||||||
| President and Chief Executive Officer | 2023 | 1,064,750 | — | — | — | 2,729,934 | — | 1,188,979 | 4,983,663 | |||||||||||||||||||||||
| 2022 | 667,792 | 1,000,000 | 6,708,818 | 971,133 | 472,476 | — | 277,560 | 10,097,779 | ||||||||||||||||||||||||
| Michael P. Quenzer | 2024 | 550,000 | — | 776,931 | 197,488 | 896,033 | — | 83,876 | 2,504,328 | |||||||||||||||||||||||
| Executive Vice President, Chief Financial Officer | ||||||||||||||||||||||||||||||||
| Gary S. Bedard | 2024 | 575,000 | — | 1,010,138 | 256,720 | 909,334 | 592,821 | 55,700 | 3,399,713 | |||||||||||||||||||||||
| Executive Vice President and President, Home Comfort Solutions | 2023 | 548,750 | — | — | — | 680,724 | 470,174 | 54,847 | 1,754,495 | |||||||||||||||||||||||
| 2022 | 511,250 | — | 920,008 | 233,054 | 525,003 | 348,349 | 48,511 | 2,586,175 | ||||||||||||||||||||||||
| Daniel M. Sessa | 2024 | 585,000 | — | 932,830 | 236,931 | 953,053 | 867,150 | 50,768 | 3,625,732 | |||||||||||||||||||||||
| Executive Vice President, Chief Human Resources Officer | 2023 | 566,250 | — | — | — | 907,387 | 253,146 | 49,800 | 1,776,583 | |||||||||||||||||||||||
| 2022 | 551,250 | — | 881,746 | 223,373 | 304,703 | — | 48,324 | 2,009,396 | ||||||||||||||||||||||||
| John D. Torres | 2024 | 565,000 | — | 932,830 | 236,931 | 920,470 | 404,199 | 66,982 | 3,126,412 | |||||||||||||||||||||||
| Former Executive Vice President, Chief Legal Officer and Corporate Secretary | 2023 | 547,500 | — | — | — | 877,341 | 273,516 | 49,800 | 1,748,157 | |||||||||||||||||||||||
| 2022 | 536,250 | — | 843,238 | 213,627 | 237,130 | — | 48,418 | 1,878,663 | ||||||||||||||||||||||||
| PSU Value at Maximum Performance Levels ($) | |||||||||||||||||
| Name | 2022 | 2023 | 2024 | ||||||||||||||
| Alok Maskara | 8,591,414 | n/a | 5,537,184 | ||||||||||||||
| Michael P. Quenzer | — | — | 971,271 | ||||||||||||||
| Gary S. Bedard | 1,149,826 | n/a | 1,262,567 | ||||||||||||||
| Daniel M. Sessa | 1,102,243 | n/a | 1,166,038 | ||||||||||||||
| John D. Torres | 1,054,170 | n/a | 1,166,038 | ||||||||||||||
| Perquisites | Other Compensation | ||||||||||||||||||||||||||||
| Name | Cash Stipend | Company Equipment and Installation | Matching Charitable Contributions | Other | Term Life Insurance Premium | Retirement Contributions | Total | ||||||||||||||||||||||
| Alok Maskara | $ | 30,000 | $ | — | $ | 10,002 | $ | — | $ | 1,141 | $ | 231,671 | $ | 272,814 | |||||||||||||||
| Michael P. Quenzer | 30,000 | — | 300 | — | 385 | 53,191 | 83,876 | ||||||||||||||||||||||
| Gary S. Bedard | 30,000 | — | 5,000 | — | — | 20,700 | 55,700 | ||||||||||||||||||||||
| Daniel M. Sessa | 30,000 | — | — | — | 68 | 20,700 | 50,768 | ||||||||||||||||||||||
| John D. Torres | 30,000 | 14,582 | — | 1,619 | 81 | 20,700 | 66,982 | ||||||||||||||||||||||
|
Estimated Possible Payouts
Under Non-Equity
Incentive Plan Awards
(1)
|
Estimated Future
Payouts Under Equity Incentive Plan
Awards
(2)
|
All Other Stock
Awards:
Number of Shares of Stock or Units
(#)
(3)
|
All Other Option Awards: Number of Securities Underlying Options
(#)
(4)
|
Exercise or Base Price of Option Awards
($/Sh)
(5)
|
Closing Market Price on Date of Grant
($/Sh) |
Grant Date Fair Value of Stock and Option Awards
($)
(6)
|
|||||||||||||||||||||||||||||||||||||||||
| Board Approval Date | |||||||||||||||||||||||||||||||||||||||||||||||
| Name | Grant Date | Threshold ($) |
Target
($) |
Max.
($) |
Threshold (#) | Target (#) |
Max.
(#) |
||||||||||||||||||||||||||||||||||||||||
| Alok Maskara | — | — | 678,750 | 1,357,500 | 3,054,375 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/8/2023 | 3,241 | 6,482 | 12,964 | 2,768,592 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/8/2023 | 3,889 | 1,661,070 | ||||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/8/2023 | 8,360 | 418.69 | 422.70 | 1,125,423 | ||||||||||||||||||||||||||||||||||||||||||
| Michael P. Quenzer | — | — | 206,250 | 412,500 | 928,125 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 569 | 1,137 | 2,274 | 485,635 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 682 | 291,296 | ||||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 1,467 | 418.69 | 422.70 | 197,488 | ||||||||||||||||||||||||||||||||||||||||||
| Gary S. Bedard | — | — | 215,625 | 431,250 | 970,313 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 739 | 1,478 | 2,956 | 631,283 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 887 | 378,855 | ||||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 1,907 | 418.69 | 422.70 | 256,720 | ||||||||||||||||||||||||||||||||||||||||||
| Daniel M. Sessa | — | — | 219,375 | 438,750 | 987,188 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 683 | 1,365 | 2,730 | 583,019 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 819 | 349,811 | ||||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 1,760 | 418.69 | 422.70 | 236,931 | ||||||||||||||||||||||||||||||||||||||||||
| John D. Torres | — | — | 211,875 | 423,750 | 953,438 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 683 | 1,365 | 2,730 | 583,019 | ||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 819 | 349,811 | ||||||||||||||||||||||||||||||||||||||||||||
| 2/5/2024 | 12/7/2023 | 1,760 | 418.69 | 422.70 | 236,931 | ||||||||||||||||||||||||||||||||||||||||||
| Assumptions | |||||||||||||||||||||||
| Grant Date | Award |
Volatility
(%) |
Expected Life
(Years) |
Dividend Yield
(%) |
Risk Free
Interest Rate (%) |
FMV Based on
Average High/ Low NYSE Trading Prices on Date of Grant ($) |
Grant Date
Fair Value Per Share ($) |
||||||||||||||||
| 2/5/2024 | PSU | — | — | 1.23 | — | 418.69 | 427.12 | ||||||||||||||||
| 2/5/2024 | RSU | — | — | 1.23 | — | 418.69 | 427.12 | ||||||||||||||||
| 2/5/2024 | SAR | 34.89 | 4.18 | 1.23 | 4.05 | 418.69 | 134.62 | ||||||||||||||||
|
Options/SAR Awards
(1)
|
Stock Awards | ||||||||||||||||||||||||||||||||||
| Name | Grant Date for Options/ SARs |
Number of Securities Underlying Unexercised Options/ SARs (#) Exercisable
(1)
|
Number of Securities Underlying Unexercised Options/
SARs (#) Unexercisable
(1)
|
Option/ SAR Exercise Price
($/Sh)
(2)
|
Option/ SAR Expiration Date |
Number of Shares or Units of Stock That Have Not Vested
(#)
(3)
|
Market Value of Shares or Units of Stock That Have Not Vested
($)
(4)
|
Equity Incentive Plan
Awards:
Number of Unearned Shares, Units or Other Rights That Have Not Vested
(#)
(5)
|
Equity Incentive Plan
Awards:
Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested
($)
(4)
|
||||||||||||||||||||||||||
| Alok Maskara | 12/9/2022 | 10,031 | 5,016 | 259.56 | 12/9/2029 | 9,750 | 5,940,675 | 32,500 | 19,802,250 | ||||||||||||||||||||||||||
| 2/5/2024 | — | 8,360 | 418.69 | 2/5/2031 | |||||||||||||||||||||||||||||||
| Michael P. Quenzer | 12/11/2020 | 635 | — | 278.00 | 12/11/2027 | 928 | 565,430 | 3,094 | 1,885,174 | ||||||||||||||||||||||||||
| 12/10/2021 | 556 | — | 328.65 | 12/10/2028 | |||||||||||||||||||||||||||||||
| 12/9/2022 | 421 | 211 | 259.56 | 12/9/2029 | |||||||||||||||||||||||||||||||
| 2/5/2024 | — | 1,467 | 418.69 | 2/5/2031 | |||||||||||||||||||||||||||||||
| Gary S. Bedard | 12/13/2019 | 4,335 | — | 257.08 | 12/13/2026 | 2,294 | 1,397,734 | 7,644 | 4,657,489 | ||||||||||||||||||||||||||
| 12/11/2020 | 2,858 | — | 278.00 | 12/11/2027 | |||||||||||||||||||||||||||||||
| 12/10/2021 | 2,642 | — | 328.65 | 12/10/2028 | |||||||||||||||||||||||||||||||
| 12/9/2022 | 2,407 | 1,204 | 259.56 | 12/9/2029 | |||||||||||||||||||||||||||||||
| 2/5/2024 | — | 1,907 | 418.69 | 2/5/2031 | |||||||||||||||||||||||||||||||
| Daniel M. Sessa | 12/13/2019 | 5,058 | — | 257.08 | 12/13/2026 | 2,167 | 1,320,353 | 7,224 | 4,401,583 | ||||||||||||||||||||||||||
| 12/11/2020 | 3,334 | — | 278.00 | 12/11/2027 | |||||||||||||||||||||||||||||||
| 12/10/2021 | 3,059 | — | 328.65 | 12/10/2028 | |||||||||||||||||||||||||||||||
| 12/9/2022 | 2,307 | 1,154 | 259.56 | 12/9/2029 | |||||||||||||||||||||||||||||||
| 2/5/2024 | — | 1,760 | 418.69 | 2/5/2031 | |||||||||||||||||||||||||||||||
| John D. Torres | 12/10/2021 | 1,020 | — | 328.65 | 12/10/2028 | 2,108 | 1,284,404 | 7,028 | 4,282,160 | ||||||||||||||||||||||||||
| 12/9/2022 | 1,103 | 1,104 | 259.56 | 12/9/2029 | |||||||||||||||||||||||||||||||
| 2/5/2024 | — | 1,760 | 418.69 | 2/5/2031 | |||||||||||||||||||||||||||||||
|
(a)
Shares or Units of Stock That Have Not Vested |
(b)
Equity Incentive Plan Awards: Unearned Shares, Units or Other Rights That Have Not Vested |
||||||||||||||||||||||
| Name | Number of Awards | Vesting Date | Number of Awards | Vesting Date | Performance Assumption | ||||||||||||||||||
| Alok Maskara | 5,861 | 12/9/2025 | 19,536 | 12/31/2025 | Max | ||||||||||||||||||
| 3,889 | 2/5/2027 | 12,964 | 12/31/2026 | Max | |||||||||||||||||||
| Total | 9,750 | 32,500 | |||||||||||||||||||||
| Michael P. Quenzer | 246 | 12/9/2025 | 820 | 12/31/2025 | Max | ||||||||||||||||||
| 682 | 2/5/2027 | 2,274 | 12/31/2026 | Max | |||||||||||||||||||
| Total | 928 | 3,094 | |||||||||||||||||||||
| Gary S. Bedard | 1,407 | 12/9/2025 | 4,688 | 12/31/2025 | Max | ||||||||||||||||||
| 887 | 2/5/2027 | 2,956 | 12/31/2026 | Max | |||||||||||||||||||
| Total | 2,294 | 7,644 | |||||||||||||||||||||
| Daniel M. Sessa | 1,348 | 12/9/2025 | 4,494 | 12/31/2025 | Max | ||||||||||||||||||
| 819 | 2/5/2027 | 2,730 | 12/31/2026 | Max | |||||||||||||||||||
| Total | 2,167 | 7,224 | |||||||||||||||||||||
| John D. Torres | 1,289 | 12/9/2025 | 4,298 | 12/31/2025 | Max | ||||||||||||||||||
| 819 | 2/5/2027 | 2,730 | 12/31/2026 | Max | |||||||||||||||||||
| Total | 2,108 | 7,028 | |||||||||||||||||||||
| Options/SAR Awards | Stock Awards | ||||||||||||||||||||||
| Name |
Number of SARs Exercised
(#) |
Value Realized on Exercise
($) |
Number of Shares Acquired on Vesting
(#) |
Value Realized on Vesting
($)
(1)
|
|||||||||||||||||||
| Alok Maskara | — | — | RSU | 2,335 | 1,129,440 | ||||||||||||||||||
| PSU | 18,676 | 10,640,464 | |||||||||||||||||||||
| Michael P. Quenzer | 1,841 | 707,481 | RSU | 192 | 122,817 | ||||||||||||||||||
| PSU | 638 | 363,494 | |||||||||||||||||||||
| Gary S. Bedard | 3,132 | 1,126,690 | RSU | 910 | 582,100 | ||||||||||||||||||
| PSU | 3,034 | 1,728,591 | |||||||||||||||||||||
| Daniel M. Sessa | 11,977 | 4,357,263 | RSU | 1,054 | 674,212 | ||||||||||||||||||
| PSU | 3,514 | 2,002,066 | |||||||||||||||||||||
| John D. Torres | 6,476 | 1,944,446 | RSU | 1,054 | 674,212 | ||||||||||||||||||
| PSU | 3,514 | 2,002,066 | |||||||||||||||||||||
| Name | Plan Name |
Number of Years Credited Service
(#) |
Present Value of Accumulated Benefit
($)
(1)
|
Payments During Last Fiscal Year
($) |
|||||||||||||
|
Alok Maskara
(2)
|
Consolidated Pension Plan (Frozen) | N/A | N/A | — | |||||||||||||
| Supplemental Retirement Plan (Closed) | N/A | N/A | — | ||||||||||||||
|
Michael P. Quenzer
(2)
|
Consolidated Pension Plan (Frozen) | N/A | N/A | — | |||||||||||||
| Supplemental Retirement Plan (Closed) | N/A | N/A | — | ||||||||||||||
|
Gary S. Bedard
|
Consolidated Pension Plan (Frozen) | 10.5 | — | — | |||||||||||||
| Supplemental Retirement Plan (Closed) | 7.3 | 1,583,491 | — | ||||||||||||||
|
Daniel M. Sessa
|
Consolidated Pension Plan (Frozen) | 1.7 | 35,644 | — | |||||||||||||
| Supplemental Retirement Plan (Closed) | 15.0 | 5,732,318 | — | ||||||||||||||
|
John D. Torres
(2)
|
Consolidated Pension Plan (Frozen) | N/A | N/A | — | |||||||||||||
| Supplemental Retirement Plan (Closed) | 15.0 | 5,429,385 | — | ||||||||||||||
| Name | Plan Name |
Executive Contributions in Last Year
($) |
Company Contributions in Last Year
($)
(1)
|
Aggregate Earnings in Last Year ($)
(2)
|
Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last Year-End ($) | |||||||||||||||||
|
Alok Maskara
(3)
|
Profit Sharing Restoration Plan (Frozen) | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||
| Supplemental Restoration Retirement Plan | — | 210,971 | 41,714 | — | 358,123 | ||||||||||||||||||
|
Michael P. Quenzer
(3)
|
Profit Sharing Restoration Plan (Frozen) | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||
| Supplemental Restoration Retirement Plan | — | 32,491 | 857 | — | 33,348 | ||||||||||||||||||
|
Gary S. Bedard
(3)(4)
|
Profit Sharing Restoration Plan (Frozen) | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||
| Supplemental Restoration Retirement Plan | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
|
Daniel M. Sessa
(4)
|
Profit Sharing Restoration Plan (Frozen) | — | — | 1,722 | — | 27,983 | |||||||||||||||||
| Supplemental Restoration Retirement Plan | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
|
John D. Torres
(3)(4)
|
Profit Sharing Restoration Plan (Frozen) | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||
| Supplemental Restoration Retirement Plan | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
| Component | Less than Three Years of Service | Three or More Years of Service | |||||||||||||||
| Base Salary | One year of base salary | Two years of base salary | |||||||||||||||
| Short-Term Incentive | Lump-sum payment equal to all payments under our STI programs received by the NEO in the previous 12 months | Lump-sum payment equal to all payments under our STI programs received by the NEO in the previous 24 months | |||||||||||||||
| Payment in Lieu of Outplacement Services | Lump-sum payment equal to 10% of base salary | Same | |||||||||||||||
| Payment in Lieu of Perquisites | Lump-sum payment equal to 10% of base salary | Same | |||||||||||||||
| Post-Employment Health Care Coverage | Payment of COBRA premiums for up to 18 months while the NEO is unemployed and not eligible for other group health coverage and payment of the equivalent of such premium for up to an additional six months, should the NEO remain unemployed | Same | |||||||||||||||
| Death Benefit | If the NEO dies during the enhanced severance period, a lump-sum death benefit equal to six months of the NEO’s base salary will be paid to the NEO’s beneficiary | Same | |||||||||||||||
| Accrued Vacation | A lump-sum payment equal to unused, accrued vacation days | Same | |||||||||||||||
| Component | CIC Benefit | ||||||||||
| Base Salary Severance | Lump-sum payment equal to three times the CEO’s annual base salary, and two times annual base salary for other NEOs. | ||||||||||
| Prorated Bonus | Lump-sum payment equal to the NEO’s target bonus, prorated based on the last day of employment. | ||||||||||
| Bonus Severance | Lump-sum payment equal to three times the CEO’s target bonus, and two times target bonus for other NEOs. | ||||||||||
| Payment in Lieu of Outplacement Services | Payment for actual cost of outplacement services. | ||||||||||
| Post-Employment Health Care Coverage | Payment of COBRA premiums for up to 36 months for the CEO and 24 months for other NEOs while the NEO is unemployed and not eligible for other group health coverage. | ||||||||||
| Accrued Vacation | A lump-sum payment equal to unused, accrued vacation days. | ||||||||||
| Involuntary-Not For Cause Termination | |||||||||||||||||||||||||||||
| Component | Voluntary Termination |
Retirement
(1)
|
Normal Severance |
Enhanced Severance
(2)
|
Death | Disability | For Cause Termination |
Change in
Control |
|||||||||||||||||||||
| Base Salary | $— | n/a | $287,500 | $1,150,000 | $287,500 | $1,150,000 | $— | $3,450,000 | |||||||||||||||||||||
| Prorated Bonus | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 1,380,000 | |||||||||||||||||||||
| Bonus | — | n/a | — | 2,729,934 | — | 2,729,934 | — | 4,140,000 | |||||||||||||||||||||
|
Outplacement Services (or
payment in lieu) |
— | n/a | — | 115,000 | — | 115,000 | — | 5,975 | |||||||||||||||||||||
| Payment in Lieu of Perquisites | — | n/a | — | 115,000 | — | 115,000 | — | — | |||||||||||||||||||||
| Post-Employment Health Care Coverage | — | n/a | — | 59,807 | — | — | — | 92,632 | |||||||||||||||||||||
|
Long-Term Equity Accelerated
Vesting |
— | n/a | — | — | 17,096,041 | 17,096,041 | — | 19,189,595 | |||||||||||||||||||||
| Unused, Accrued Vacation | 110,577 | n/a | 110,577 | 110,577 | 110,577 | 110,577 | 110,577 | 110,577 | |||||||||||||||||||||
| TOTAL | $110,577 | n/a | $398,077 | $4,280,318 | $17,494,118 | $21,316,552 | $110,577 | $28,368,779 | |||||||||||||||||||||
| Involuntary-Not For Cause Termination | |||||||||||||||||||||||||||||
| Component | Voluntary Termination |
Retirement
(1)
|
Normal Severance | Enhanced Severance | Death | Disability | For Cause Termination |
Change in
Control |
|||||||||||||||||||||
| Base Salary | $— | n/a | $137,500 | $1,100,000 | $137,500 | $1,100,000 | $— | $1,100,000 | |||||||||||||||||||||
| Prorated Bonus | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 412,500 | |||||||||||||||||||||
| Bonus | — | n/a | — | 369,778 | — | 369,778 | — | 825,000 | |||||||||||||||||||||
| Outplacement Services (or payment in lieu) | — | n/a | — | 55,000 | — | 55,000 | — | 5,975 | |||||||||||||||||||||
| Payment in Lieu of Perquisites | — | n/a | — | 55,000 | — | 55,000 | — | — | |||||||||||||||||||||
| Post-Employment Health Care Coverage | — | n/a | — | 56,106 | — | — | — | 56,106 | |||||||||||||||||||||
| Long-Term Equity Accelerated Vesting | — | n/a | — | — | 1,376,435 | 1,376,435 | — | 1,861,437 | |||||||||||||||||||||
| Unused, Accrued Vacation | 52,885 | n/a | 52,885 | 52,885 | 52,885 | 52,885 | 52,885 | 52,885 | |||||||||||||||||||||
| TOTAL | $52,885 | n/a | $190,385 | $1,688,769 | $1,566,820 | $3,009,098 | $52,885 | $4,313,903 | |||||||||||||||||||||
| Involuntary-Not For Cause Termination | |||||||||||||||||||||||||||||
| Component | Voluntary Termination | Retirement | Normal Severance | Enhanced Severance | Death | Disability | For Cause Termination |
Change in
Control |
|||||||||||||||||||||
| Base Salary | $— | $— | $145,000 | $1,160,000 | $145,000 | $1,160,000 | $— | $1,160,000 | |||||||||||||||||||||
| Prorated Bonus | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 435,000 | |||||||||||||||||||||
| Bonus | — | — | — | 1,205,727 | — | 1,205,727 | — | 870,000 | |||||||||||||||||||||
|
Outplacement Services (or
payment in lieu) |
— | — | — | 58,000 | — | 58,000 | — | 5,975 | |||||||||||||||||||||
| Payment in Lieu of Perquisites | — | — | — | 58,000 | — | 58,000 | — | — | |||||||||||||||||||||
| Post-Employment Health Care Coverage | — | — | — | 54,191 | — | — | — | 54,191 | |||||||||||||||||||||
| Long-Term Equity Accelerated Vesting | — | 3,257,927 | — | — | 4,042,507 | 4,042,507 | — | 4,511,059 | |||||||||||||||||||||
| Unused, Accrued Vacation | 55,769 | 55,769 | 55,769 | 55,769 | 55,769 | 55,769 | 55,769 | 55,769 | |||||||||||||||||||||
| TOTAL | $55,769 | $3,313,696 | $200,769 | $2,591,687 | $4,243,276 | $6,580,003 | $55,769 | $7,091,994 | |||||||||||||||||||||
| Involuntary-Not For Cause Termination | |||||||||||||||||||||||||||||
| Component | Voluntary Termination |
Retirement
(1)
|
Normal Severance | Enhanced Severance | Death | Disability | For Cause Termination | Change in Control | |||||||||||||||||||||
| Base Salary | $— | n/a | $147,500 | $1,180,000 | $147,500 | $1,180,000 | $— | $1,180,000 | |||||||||||||||||||||
| Prorated Bonus | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 442,500 | |||||||||||||||||||||
| Bonus | — | n/a | — | 1,212,090 | — | 1,212,090 | — | 885,000 | |||||||||||||||||||||
|
Outplacement Services (or
payment in lieu) |
— | n/a | — | 59,000 | — | 59,000 | — | 5,975 | |||||||||||||||||||||
| Payment in Lieu of Perquisites | — | n/a | — | 59,000 | — | 59,000 | — | — | |||||||||||||||||||||
|
Post-Employment Health Care
Coverage |
— | n/a | — | 36,565 | — | — | — | 36,565 | |||||||||||||||||||||
| Long-Term Equity Accelerated Vesting | — | n/a | — | — | 3,835,536 | 3,835,536 | — | 4,260,219 | |||||||||||||||||||||
| Unused, Accrued Vacation | 56,731 | n/a | 56,731 | 56,731 | 56,731 | 56,731 | 56,731 | 56,731 | |||||||||||||||||||||
| TOTAL | $56,731 | n/a | $204,231 | $2,603,386 | $4,039,767 | $6,402,357 | $56,731 | $6,866,990 | |||||||||||||||||||||
| Involuntary-Not For Cause Termination | |||||||||||||||||||||||||||||
| Component | Voluntary Termination |
Retirement
(1)
|
Normal Severance | Enhanced Severance | Death | Disability | For Cause Termination | Change in Control | |||||||||||||||||||||
| Base Salary | $— | $— | $142,500 | $1,140,000 | $142,500 | $1,140,000 | $— | $1,140,000 | |||||||||||||||||||||
| Prorated Bonus | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 427,500 | |||||||||||||||||||||
| Bonus | — | — | — | 1,114,471 | — | 1,114,471 | — | 855,000 | |||||||||||||||||||||
|
Outplacement Services (or
payment in lieu) |
— | — | — | 57,000 | — | 57,000 | — | 5,975 | |||||||||||||||||||||
| Payment in Lieu of Perquisites | — | — | — | 57,000 | — | 57,000 | — | — | |||||||||||||||||||||
| Post-Employment Health Care Coverage | — | — | — | 37,539 | — | — | — | 37,539 | |||||||||||||||||||||
| Long-Term Equity Accelerated Vesting | — | 2,991,663 | — | — | 3,713,250 | 3,713,250 | — | 4,147,071 | |||||||||||||||||||||
| Unused, Accrued Vacation | 54,808 | 54,808 | 54,808 | 54,808 | 54,808 | 54,808 | 54,808 | 54,808 | |||||||||||||||||||||
| TOTAL | $54,808 | $3,046,471 | $197,308 | $2,460,818 | $3,910,558 | $6,136,529 | $54,808 | $6,667,893 | |||||||||||||||||||||
| CEO Pay Ratio | ||||||||||||||
| Date Used to Identify Median Employee | 10/31/2024 | ||||||||||
| Employee Pool Used to Identify Median Employee | Our employee population consisted of approximately 14,089 individuals on October 31, 2024. In determining the median employee, we excluded all employees from certain non-U.S. countries under the de minimis exemption under applicable SEC regulations. The list of excluded countries, together with the number of employees excluded in each country, was as follows: China (29) and Canada (240). In total, we excluded 269 employees under the de minimis exemption, representing approximately 1.9% of our total employee population as of October 31, 2024. Therefore, there were 13,820 employees used for purposes of identifying our median employee. | ||||||||||
| Compensation Used to Identify Median Employee | Total gross wages as derived from the Company’s payroll records. | ||||||||||
|
Median Employee Annual Total Compensation for 2024
|
$61,166, which includes the value of the median employee’s health and welfare benefits and retirement benefits. We calculated the median employee’s compensation in the same manner as we calculated total compensation of the CEO in the 2024 Summary Compensation Table and then added the value of health and welfare benefits.
|
||||||||||
|
CEO Annual Total Compensation for 2024
|
$9,923,347, which is $15,436 more than the amount disclosed in the 2024 Summary Compensation Table. The increase reflects the value of health and welfare benefits, which are excluded from the 2024 Summary Compensation Table under SEC rules.
|
||||||||||
| Pay Ratio | 162:1 | ||||||||||
| Pay Versus Performance Disclosure | ||
| Year (a) |
Summary
Compensation
Table (SCT)
Total for PEO
1 (Todd M.
Bluedorn)
(b)
(1)
($)
|
Compensation Actually Paid (“CAP”) to PEO 1 (Todd M. Bluedorn)
(c)
(1)
($)
|
SCT
Total for PEO 2 (Todd J. Teske)
(b)
(1)
($)
|
CAP to PEO 2 (Todd J. Teske)
(c)
(1)
($)
|
SCT
Total for PEO 3 (Alok Maskara)
(b)
(1)
($)
|
CAP to PEO 3 (Alok Maskara)
(c)
(1)(2)
($)
|
Average SCT
Total for Non-PEO Named Executive Officers (d) ($) |
Average CAP to Non-PEO Named Executive Officers
(e)
(1)(2)
($)
|
Value of Initial Fixed $100
Investment Based On: |
Net Income
(in $millions) (h) ($) |
Company Core Net Income
(in $millions)
(i)
(4)
($)
|
|||||||||||||||||||||||||||
|
Total Shareholder Return
(f)
(3)
($)
|
Peer
Group
Total Shareholder Return
(g)
(3)
($)
|
|||||||||||||||||||||||||||||||||||||
| 2024 | — | — | — | — |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2023 | — | — | — | — |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2022 |
|
(
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2021 |
|
|
— | — | — | — |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2020 |
|
|
— | — | — | — |
|
|
|
|
|
|
||||||||||||||||||||||||||
|
Alok Maskara
(PEO 3) |
Average for Non-
PEO NEOs |
||||||||||
| Summary Compensation Table Total Compensation |
|
|
|||||||||
| - aggregate change in actuarial present value of pension benefits |
|
|
|||||||||
| + service cost of pension benefits |
|
|
|||||||||
| + prior service cost of pension benefit |
|
|
|||||||||
| - SCT “Stock Awards” column value |
|
|
|||||||||
| - SCT “Option Awards” column value |
|
|
|||||||||
| + year-end fair value of equity awards granted in the covered year that are outstanding and unvested as of the covered year-end |
|
|
|||||||||
| [+/-] change in fair value (from prior year-end to covered year-end) of equity awards granted in prior years that are outstanding and unvested as of the covered year-end |
|
|
|||||||||
| + vesting date fair value of equity awards granted and vested in the covered year |
|
|
|||||||||
|
Alok Maskara
(PEO 3) |
Average for Non-
PEO NEOs |
||||||||||
| [+/-] change in fair value (from prior year-end to vesting date) of equity awards granted in prior years that vested in the covered year |
|
|
|||||||||
| - fair value as of prior-year end of equity awards granted in prior years that failed to vest in the covered year |
|
|
|||||||||
| + dollar value of dividends/earnings paid on equity awards in the covered year |
|
|
|||||||||
| Compensation Actually Paid |
|
|
|||||||||
|
|
||
|
|
||
|
|
||
|
|
||
| Equity Compensation Plan Information | ||
| Plan Category |
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights
(1)
|
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights
(2)
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (a)
(3)
|
|||||||||||||||||
| (a) | (b) | (c) | ||||||||||||||||||
| Equity compensation plans approved by security holders | ||||||||||||||||||||
|
• 2019 Equity and Incentive Compensation Plan
(4)
|
330,552 | $ | 306.46 |
(5)
|
1,637,606 | |||||||||||||||
| • 2022 Employee Stock Purchase Plan | — | — | 971,132 | |||||||||||||||||
| Equity compensation plans not approved by security holders | — | — | — | |||||||||||||||||
| Total | 330,552 | $ | 306.46 | 2,608,738 | ||||||||||||||||
| Performance Level | ||||||||||||||||||||||||||
| Below Threshold | Threshold | Target | Maximum | |||||||||||||||||||||||
|
Shares to be Issued Pursuant to Outstanding
PSUs
|
— | 28,372 | 56,744 | 113,488 | ||||||||||||||||||||||
|
Number of Securities Remaining Available for
Future Issuance Under Equity Compensation Plans
|
2,665,482 | 2,637,110 | 2,608,738 | 2,551,994 | ||||||||||||||||||||||
| Certain Relationships and Related Party Transactions | ||
| Delinquent Section 16(a) Reports | ||
| Beneficial Ownership of Common Stock | ||
| Name of Beneficial Owner |
Common
Stock Held (#) |
Common Stock
that may be
Acquired Within
60 Days (#)
(1)
|
Total Shares
Beneficially Held (#) |
Percent of Class (%) | |||||||||||||
| 5% Stockholders | |||||||||||||||||
|
BlackRock, Inc.
(2)
|
2,863,070 | — | 2,863,070 | 8.07 | % | ||||||||||||
|
The Vanguard Group
(3)
|
3,883,531 | — | 3,883,531 | 10.95 | % | ||||||||||||
| Directors and Named Executive Officers | |||||||||||||||||
| Gary S. Bedard | 19,002 | 12,877 | 31,879 |
*
|
|||||||||||||
| Sherry L. Buck | 1,126 | — | 1,126 |
*
|
|||||||||||||
|
Janet K. Cooper
(4)
|
17,925 | — | 17,925 |
*
|
|||||||||||||
| Alok Maskara | 14,437 | 12,817 | 27,254 |
*
|
|||||||||||||
|
John W. Norris, III
(5)
|
3,261,829 | — | 3,261,829 | 9.20 | % | ||||||||||||
| Michael P. Quenzer | 1,946 | 2,101 | 4,047 |
*
|
|||||||||||||
| Karen H. Quintos | 7,520 | — | 7,520 |
*
|
|||||||||||||
| Daniel M. Sessa | 31,610 | 14,344 | 45,954 |
*
|
|||||||||||||
| Soma Somasundaram | 305 | — | 305 |
*
|
|||||||||||||
| Gregory T. Swienton | 13,389 | — | 13,389 |
*
|
|||||||||||||
| Todd J. Teske | 7,344 | — | 7,344 |
*
|
|||||||||||||
| John D. Torres | 4,156 | 586 | 4,742 |
*
|
|||||||||||||
|
Jon Vander Ark
(6)
|
4 | — | 4 |
*
|
|||||||||||||
|
Shane D. Wall
(7)
|
1,468 | — | 1,468 |
*
|
|||||||||||||
|
All current directors and executive officers as a group (17 persons)
|
3,399,606 | 56,821 | 3,456,427 | 9.73 | % | ||||||||||||
| Other Information | ||
|
The virtual-only meeting format enhances stockholder access to the Annual Meeting by enabling stockholder attendance and participation from anywhere in the world, without cost. We believe that the virtual-only meeting format gives stockholders the opportunity to exercise the same rights as if they had attended an in-person meeting and encourages communication with our Board and management. | ||||
| Proposal | Voting Options |
Vote Required to Adopt the
Proposal |
Effect of Abstentions | Broker Discretionary Votes Allowed? | Effect of Broker Non-Votes* | |||||||||||||||
|
Proposal 1
Election of Directors
|
FOR, AGAINST
, or
ABSTAIN
for each nominee
|
Majority of votes cast, meaning a nominee will be elected if the votes cast
FOR
such nominee exceed the votes cast
AGAINST
such nominee
|
No effect | No | No effect | |||||||||||||||
|
Proposal 2
Advisory Proposal on 2024 Executive Compensation
|
FOR, AGAINST
, or
ABSTAIN
|
Approval requires the number of
FOR
votes cast to exceed the number of shares voted
AGAINST
or
ABSTAINING
|
Counted as a vote. Same effect as votes against | No | No effect | |||||||||||||||
|
Proposal 3
Ratification of Ernst Young LLP as Independent Registered Public Accounting Firm for 2025
|
FOR, AGAINST
, or
ABSTAIN
|
Approval requires the number of
FOR
votes cast to exceed the number of shares voted
AGAINST
or
ABSTAINING
|
Counted as a vote. Same effect as votes against | Yes | Brokers’ votes will count | |||||||||||||||
| Appendix A – GAAP Reconciliation | ||||||||||||||
| For the Year Ended December 31, 2024 | For the Year Ended December 31, 2023 | |||||||||||||
| Net Sales | ||||||||||||||
| Home Comfort Solutions | $3,577 | $3,223 | ||||||||||||
| Building Climate Solutions | 1,764 | 1,511 | ||||||||||||
|
Corporate and other
(1)
|
— | 248 | ||||||||||||
| Net sales, a GAAP measure | $5,341 | $4,982 | ||||||||||||
|
Net sales from non-core businesses
(1)
|
— | 248 | ||||||||||||
| Core Net Sales, a non-GAAP measure | $5,341 | $4,734 | ||||||||||||
| Segment Profit | ||||||||||||||
| Home Comfort Solutions | $760 | $610 | ||||||||||||
| Building Climate Solutions | 397 | 341 | ||||||||||||
|
Corporate and other
(1)
|
(120) | (94) | ||||||||||||
| Segment profit, a GAAP measure | $1,037 | $857 | ||||||||||||
|
Profit from non-core businesses
(1)
|
— | 8 | ||||||||||||
| Adjusted Segment Profit, a non-GAAP measure | $1,037 | $849 | ||||||||||||
|
Profit from non-core businesses
(1)
|
— | (8) | ||||||||||||
| Impairments on assets held for sale | — | 63 | ||||||||||||
| Loss (gain) on sale from previous disposition | 2 | (14) | ||||||||||||
|
Items in Losses (gains) and other expenses, net which are excluded from segment profit
(2)
|
— | 15 | ||||||||||||
| Restructuring charges | — | 3 | ||||||||||||
| Operating Income, a GAAP measure | $1,035 | $790 | ||||||||||||
| For the Year Ended December 31, 2024 | For the Year Ended December 31, 2023 | ||||||||||
| Net Cash Provided by Operating Activities, a GAAP measure | $945.7 | $736.2 | |||||||||
| Purchases of property, plant, and equipment | (163.6) | (250.2) | |||||||||
| Proceeds from the disposal of property, plant, and equipment | 2.5 | 2.1 | |||||||||
| Free Cash Flow, a non-GAAP measure | $784.6 | $488.1 | |||||||||
|
For the Year Ended December 31, 2024
|
|||||||||||
| After Tax Amount | Per Diluted Share | ||||||||||
| Net Income, a GAAP measure | $806.9 | $22.54 | |||||||||
| Restructuring charges | — | — | |||||||||
| Pension settlements | — | — | |||||||||
| Items in Losses (gains) and other expenses, net which are excluded from segment profit (loss) (a) | — | — | |||||||||
| Excess tax benefits from share-based compensation (b) | — | — | |||||||||
| Loss on sale from previous disposition | 1.5 | 0.04 | |||||||||
| Other tax items, net (b) | — | — | |||||||||
| Impairments on assets held for sale (c) | — | — | |||||||||
| Non-core business results (d) | — | — | |||||||||
| Adjusted net income, a non-GAAP measure | $808.4 | $22.58 | |||||||||
|
For the Year Ended December 31, 2023
|
|||||||||||
| After Tax Amount | Per Diluted Share | ||||||||||
| Net Income, a GAAP measure | $590.1 | $16.54 | |||||||||
| Restructuring charges | 2.4 | 0.07 | |||||||||
| Pension settlements | 0.3 | 0.01 | |||||||||
| Items in Losses (gains) and other expenses, net which are excluded from segment profit (loss) (a) | 11.1 | 0.31 | |||||||||
| Excess tax benefits from share-based compensation (b) | (5.2) | (0.15) | |||||||||
| Gain on sale of business | (11.1) | (0.31) | |||||||||
| Other tax items, net (b) | (3.7) | (0.1) | |||||||||
| Impairments on assets held for sale (c) | 62.0 | 1.74 | |||||||||
| Non-core business results (d) | (5.4) | (0.15) | |||||||||
| Adjusted net income, a non-GAAP measure | $640.5 | $17.96 | |||||||||
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|