UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A INFORMATION

PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE

SECURITIES EXCHANGE ACT OF 1934

(AMENDMENT NO. )

SCHEDULE 14A

 

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Filed by the Registrant

 

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Check the appropriate box:

 

 

 

 

 

 

Preliminary Proxy Statement

 

 

 

 

 

 

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

 

 

 

 

 

 

Definitive Proxy Statement

 

 

 

 

 

 

Definitive Additional Materials

 

 

 

 

 

 

Soliciting Material Pursuant to §240.14a-12

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AGILENT TECHNOLOGIES, INC.

(Name of Registrant as Specified In Its Charter)

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

 

Payment of Filing Fee (Check the appropriate box):

 

 

 

 

 

 

No fee required.

 

 

 

 

 

 

Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

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5301 Stevens Creek Boulevard
Santa Clara, California 95051 (408) 553-2424

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Notice of Annual Meeting of Stockholders

 

TIME

:

8:00 a.m., Pacific Time, on Wednesday, March 15, 2023 (log-in beginning 7:30 a.m., Pacific Time)

 

 

 

PLACE

:

Virtual Meeting

 

 

www.meetnow.global/MJ6XTQA

 

 

 

AGENDA

:

1.
To elect four directors to a three-year term. At the annual meeting, the Board of Directors intends to present the following nominees for election as directors:

 

 

 

 

 

Heidi K. Kunz
Susan H. Rataj
George A. Scangos, Ph.D. and
Dow R. Wilson

 

 

 

 

 

2.
To approve, on a non-binding advisory basis, the compensation of our named executive officers.

 

 

 

 

 

3.
To ratify the Audit and Finance Committee’s appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm.

 

 

 

 

 

4.
To vote on the approval of amendments to Certificate of Incorporation to create a new stockholder right to call a special meeting.

 

 

 

 

 

5.
To consider such other business as may properly come before the annual meeting.

 

RECORD DATE

:

You are entitled to vote at the annual meeting and at any adjournments, postponements or continuations thereof if you were a stockholder at the close of business on Tuesday, January 24, 2023.

 

 

 

VOTING

:

For instructions on voting, please refer to the instructions on the Notice of Internet Availability of Proxy Materials you received in the mail or, if you received a hard copy of the proxy statement, on your enclosed proxy card.

 

 

 

ADMISSION

:

To participate in the virtual annual meeting, stockholders of record will need the 15-digit control number included on your Notice of Internet Availability of Proxy Materials, your proxy card or on the instructions that accompanied your proxy materials. Beneficial owners will need to register in order to attend the virtual annual meeting. For detailed instructions, please refer to page 60 in the General Information section. The annual meeting will begin promptly at 8:00 a.m., Pacific Time. Attendees may begin logging in at 7:30 a.m., Pacific Time, thirty minutes in advance of the meeting. If you encounter any difficulties accessing the meeting, please call the technical support number 1-888-724-2416.

 

 

 

QUESTIONS:

 

We are committed to ensuring the annual meeting provides stockholders with a meaningful opportunity to participate, including the ability to ask questions. Stockholders of record may ask questions during the annual meeting by following the instructions on your Notice, proxy card or the instructions that accompanied your proxy. Beneficial owners may ask questions directly via the virtual meeting website. Questions relevant to meeting matters will be answered during the meeting, subject to time constraints. We will post responses to such questions not answered due to time constraints on our Investor Relations webpage.

 

 

By Order of the Board of Directors

 

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MICHAEL TANG

 

Senior Vice President, General Counsel and Secretary

 

 

 

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This proxy statement and the accompanying proxy card are being sent or made available on or about February 3, 2023.

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SUMMARY INFORMATION

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This proxy statement contains forward-looking statements as defined in the Securities Exchange Act of 1934 (the “Exchange Act”) and is subject to the safe harbors created therein. The forward-looking statements contained herein are generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on the beliefs and assumptions of our management and on currently available information. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our annual report on Form 10-K for the fiscal year ended October 31, 2022. We undertake no responsibility to publicly update or revise any forward-looking statement.

 

PROXY SUMMARY

 

The following is a summary which highlights information contained elsewhere in this proxy statement. This summary does not contain all of the information you should consider, and you are urged to read the entire proxy statement carefully before voting.

 

Voting Matters and Vote Recommendations

 

We currently expect to consider four items of business at the 2023 annual meeting. The following table lists those items of business and our Board’s vote recommendation.

 

 

PROPOSAL

BOARD
RECOMMENDATION

REASONS FOR RECOMMENDATION

MORE
INFORMATION

(1)

Election of four directors to a three-year term

FOR

The Board and the Nominating/Corporate Governance Committee believe our nominees possess the skills, experience and qualifications to effectively monitor performance, provide oversight and support management’s execution of our long-term strategy.

6

(2)

Advisory vote to approve the compensation of our named executive officers

FOR

Our executive compensation program incorporates a number of compensation governance best practices and reflects our commitment to pay for performance.

52

(3)

Ratification of the independent registered public accounting firm

FOR

Based on their assessment, the Board and the Audit and Finance Committee believe that the appointment of PricewaterhouseCoopers LLP is in the best interests of the company and our stockholders.

53

(4)

Approve amendments to Certificate of Incorporation to create a new stockholder right to call a special meeting

FOR

Based on their consideration of the collective input from our stockholders, the Board believes that it is in the best interests of the company and our stockholders to amend our Certificate of Incorporation to permit stockholders holding not less than 20% of our voting stock continuously for at least 1 year to call a special meeting of stockholders.

56

 

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SUMMARY INFORMATION

 

Director Nominees

 

Our Board is currently divided into three classes serving staggered three-year terms. The following table provides summary information about each of the four director nominees who are being voted on at the annual meeting.

 

NAME

AGE

DIRECTOR
SINCE

OCCUPATION

 

COMMITTEE MEMBERSHIPS

Heidi K. Kunz

68

2000

Director of Avanos Medical, Inc. and

Compensation

 

 

 

Phathom Pharmaceuticals, Inc.

Nominating/Corporate Governance

 

 

 

 

 

 

Susan H. Rataj

65

2015

Director of Cabot Corporation

Audit and Finance

 

 

 

 

Nominating/Corporate Governance

 

 

 

 

 

 

George A. Scangos, Ph.D.

74

2011

Chief Executive Officer and Director of

Compensation (Chair)

 

 

 

VIR Biotechnology, Inc.

Nominating/Corporate Governance

 

 

 

 

 

 

Dow R. Wilson

63

2018

Director of Siemens Healthineers AG

Audit and Finance (Chair)

 

 

 

 

Nominating/Corporate Governance

 

 

 

 

 

 

 

Corporate Social Responsibility (including as to ESG Matters)

 

We are strongly committed to progress on environmental, social responsibility and governance issues. This commitment is an important part of our mission – to advance the quality of life – and aligned with our core business objectives. In the past year, our products and our expertise have contributed to stemming the tide of COVID-19. We have also continued to take proactive actions to protect the health and safety of our employees, customers, partners and suppliers. We announced our commitment to achieve net-zero greenhouse gas emissions by 2050. We believe that, with our culture of innovation, we are in a strong position to contribute important solutions to reducing greenhouse gas emissions. As a company, we are committed to continued sustainable business operations, thoughtful social responsibility initiatives and maintaining governance structures that promote effective oversight.

 

Environmental Sustainability

 

In fiscal year 2022, we announced our commitment to achieve net-zero greenhouse gas emissions no later than 2050. To achieve these goals, we have also committed to interim greenhouse gas reduction targets. By 2030, we will reduce absolute scope 1 and 2 emissions by 50% and scope 3 emissions by at least 30% (with a stretch goal of 40%) from a base year of 2019. In addition, we will continue to invest in renewable energy and focus on three areas where our carbon footprint is greatest: purchased goods and services, sold products, and transportation and distribution. To provide investors with meaningful sustainability information, we also announced that we are adopting the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

 

Diversity and Inclusion

 

As a global company, much of our success is rooted in the diversity of our teams and our commitment to inclusion. We value diversity at all levels and continue to focus on extending our diversity and inclusion initiatives across our entire workforce, from providing managers transparency of their workforce pay equity to working with managers to develop strategies for building diverse teams and promoting the advancement of leaders from different backgrounds. Agilent is committed to creating a diverse work environment and is proud to be an equal opportunity employer. We believe in an inclusive workforce, where employees from a number of cultures and countries are engaged and encouraged to leverage their collective talents. As of October 31, 2022, approximately 38% of our full-time employees were female. Approximately 45% of our board is comprised of directors representing traditionally underrepresented groups as of December 31, 2022. We also have employee-network groups aimed at promoting engagement of women, Black, LGBTQIA+, Asian, and Hispanic and Latino employees. To further our commitment to global diversity and inclusion efforts, in 2020 we hired an associate vice president of diversity and inclusion and launched a number of company-wide initiatives.

 

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SUMMARY INFORMATION

 

Corporate Governance

 

The Board is committed to sound and effective governance practices that promote long-term stockholder value and strengthen Board and management accountability to our stockholders, customers and other stakeholders. The following table highlights many of our key governance practices. Specific details on our governance practices can be found starting on page 15.

 

 

Ten of our eleven directors are independent

 

 

Annual Board self-assessment process, including peer evaluations

 

Independent standing Board committees

 

 

Majority voting and director resignation policy in uncontested director elections

 

Strong independent Chairperson

 

 

Continued assessment of highly qualified, diverse and independent candidates for nomination to the Board

 

Regular meetings of our independent directors without management present

 

 

Strong focus on pay-for-performance

 

Diverse Board with an effective mix of skills, experience and perspectives

 

 

Proactive stockholder engagement

 

Five new independent directors added during the past five years

 

 

Policies prohibiting hedging, short selling and pledging of our common stock

 

Varied lengths of Board tenure with an average tenure of nine years

 

 

Stock ownership guidelines for executive officers and directors

 

Proxy access for our stockholders

 

 

Robust enterprise risk management approach, overseen by the Board through its Audit and Finance Committee

 

Stockholder Engagement

 

We have a year-around stockholder engagement program that reaches a wide variety of stockholders, market participants and potential investors. This program involves periodic discussions with respect to various matters that may be of interest, such as our business, financial and operating performance, corporate governance initiatives, ESG-related disclosures and practices, diversity and inclusion topics, human capital management, risk management, compensation and corporate priorities. Feedback and perspectives from investors gathered from our engagement programs are regularly considered by our management team and Board, as the Company seeks to incorporate valuable investor insights into deliberations and decision-making processes.

 

Oversight and Management of Corporate Social Responsibility (including as to ESG Matters)

 

Our Board, through its Nominating/Corporate Governance Committee, oversees Agilent’s environmental, social and governance (ESG) program and the progress of our ESG efforts and initiatives. The Nominating/Corporate Governance Committee formally reviews our ESG efforts, including our sustainability initiatives, within the organization and reports to the Board on a regular basis. The Board and its Compensation Committee oversee the administration of the company’s employee benefits, including health and compensation plans.

 

For more information, refer to our annual Environmental, Social and Governance report, which is available on our website. Our Environmental, Social and Governance report and website are not part of or incorporated by reference into this proxy statement.

 

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TABLE OF CONTENTS

 

2023 annual meeting OF STOCKHOLDERS

NOTICE OF ANNUAL MEETING AND PROXY STATEMENT

TABLE OF CONTENTS

 

Page

PROPOSAL 1 – ELECTION OF DIRECTORS

6

Director Nominees for Election to New Three-Year Terms That Will Expire in 2026

7

Directors Whose Terms Expire in 2024

9

Directors Whose Terms Expire in 2025

11

COMPENSATION OF NON-EMPLOYEE DIRECTORS

13

Summary of Non-Employee Director Annual Compensation for the 2022 Plan Year

13

Non-Employee Director Compensation for Fiscal Year 2022

14

Non-Employee Director Reimbursement

14

Non-Employee Director Stock Ownership Guidelines

14

CORPORATE GOVERNANCE

15

Board Leadership Structure

15

Board’s Role in Risk Oversight

15

Majority Voting for Directors

16

Board Communications

16

Director Stockholder Meeting Attendance

17

Director Independence

17

Compensation Committee Member Independence

17

Director Nomination Criteria: Qualifications and Experience

17

Committees of the Board of Directors

19

Related Person Transactions Policy and Procedures

20

Transactions with Related Persons

21

COMPENSATION DISCUSSION AND ANALYSIS

23

Executive Summary

24

Additional Information

38

COMPENSATION COMMITTEE REPORT

41

EXECUTIVE COMPENSATION

42

Summary Compensation Table

42

Grants of Plan-Based Awards

44

Outstanding Equity Awards at Fiscal Year-End

45

Option Exercises and Stock Vested

46

Pension Benefits

47

Non-Qualified Deferred Compensation

48

Termination and Change of Control Arrangements

49

CEO Pay Ratio

51

PROPOSAL 2 – ADVISORY VOTE TO APPROVE THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS

52

PROPOSAL 3 – RATIFICATION OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

53

AUDIT MATTERS

54

Fees Paid to PricewaterhouseCoopers LLP

54

Policy on Preapproval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm

54

AUDIT AND FINANCE COMMITTEE REPORT

55

PROPOSAL 4 – APPROVE AMENDMENTS TO CERTIFICATE OF INCORPORATION TO CALL A SPECIAL MEETING

56

BENEFICIAL OWNERSHIP

58

Stock Ownership of Certain Beneficial Owners

58

Stock Ownership of Directors and Officers

59

Section 16(a) Beneficial Ownership Reporting Compliance

59

GENERAL INFORMATION

60

APPENDIX A

A-1

 

 

 

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PROPOSAL 1 - ELECTION OF DIRECTORS

 

PROPOSAL 1 – ELECTION OF DIRECTORS

 

Our Board is divided into three classes serving staggered three-year terms. Directors for each class are elected at the annual meeting of stockholders held in the year in which the term for their class expires. Our Bylaws, as amended, allow the Board to fix the number of directors by resolution. Our Board currently consists of eleven directors divided into three classes.

 

The terms of four directors will expire at this annual meeting. The current composition of the Board and the term expiration dates for each director are as follows:

 

Class

 

Directors

Term Expires

I

 

Hans E. Bishop, Otis W. Brawley, M.D. and Mikael Dolsten, M.D., Ph.D.

2025

II

 

Heidi K. Kunz, Susan H. Rataj, George A. Scangos, Ph.D. and Dow R. Wilson

2023

III

 

Mala Anand, Koh Boon Hwee, Michael R. McMullen and Daniel K. Podolsky, M.D.

2024

 

Please review our Director Qualifications Matrix and related disclosure below for deeper insight into the skills, experiences and diversity of our carefully constructed board of directors as a whole.

 

About Agilent

 

Agilent Technologies Inc. is a global leader in the life sciences, diagnostics, and applied chemical markets, delivering insight and innovation that advance the quality of life. Agilent’s full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers' most challenging questions. We currently have three business segments comprised of the life sciences and applied markets business, the diagnostics and genomics business and the Agilent CrossLab business.

 

Director Qualification Matrix

 

The members of the Board have a diversity of experience and a wide variety of backgrounds, skills, qualifications and viewpoints that strengthen their ability to carry out their oversight role on behalf of our stockholders. The following matrix is provided to illustrate the knowledge, skills and experience of the directors that serve on our Board. The matrix does not encompass all of the knowledge, skills and experience of our directors, and the fact that a particular knowledge, skill or experience is not listed does not mean that a director does not possess it. In addition, the absence of a particular knowledge, skill or experience with respect to any of our directors does not mean the director in question is unable to contribute to the decision-making process in that area. However, a mark indicates a specific area of focus or expertise that the director brings to our Board. More information on each director’s qualifications and background can be found in the preceding director biographies. We regularly review the attributes required of Board members in order to better facilitate our long-term goals and operational performance, enhance our corporate culture and promote diversity and inclusiveness at our company.

 

Category

Anand

Bishop

Brawley

Dolsten

Koh

Kunz

McMullen

Podolsky

Rataj

Scangos

Wilson

International

 

 

 

 

 

Life Sciences/ Healthcare

 

 

 

Technology/ Innovation Strategy

 

 

 

 

M&A

 

 

 

 

 

 

 

Public Company Executive

 

 

Accounting/Finance

 

 

 

 

 

 

 

 

 

Branding/Marketing

 

 

 

 

 

 

 

 

 

Regulatory

 

 

 

Age

55

58

63

64

72

68

61

69

65

74

63

Gender

F

M

M

M

M

F

M

M

F

M

M

Race/Ethnicity*

A

C

AA

C

A

C

C

C

C

C

C

 

*

“C” refers to Caucasian

“A” refers to Asian/Pacific Islander

“AA” refers to African American

 

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PROPOSAL 1 - ELECTION OF DIRECTORS

 

 

Director Nominees for Election to New Three-Year Terms That Will Expire in 2026

 

Directors elected at the 2023 annual meeting will hold office for a three-year term expiring at the annual meeting in 2026 (or until their respective successors are elected and qualified, or until their earlier death, resignation or removal). All nominees are currently serving as our directors. To the best knowledge of the Board, all of the nominees are able and willing to serve. Each nominee has consented to be named in this proxy statement and to serve if elected. Information regarding each nominee is provided below as of December 31, 2022. There are no family relationships among our executive officers and directors.

 

HEIDI K. KUNZ

 

 

 

 

Age: 68

Board Committees:

Other Public Directorships:

Director Since: February 2000

Compensation

Icosavax, Inc.

 

Nominating/Corporate Governance

Phathom Pharmaceuticals, Inc.

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

Avanos Medical, Inc.

 

 

 

Financial Engines, Inc.

 

 

 

Ms. Kunz has served as a member of the Board of Directors of Phathom Pharmaceuticals, Inc. since September 2019. She is a member of the Board of Directors of Icosavax, Inc. since May 2021. She has served as Executive Vice President and Chief Financial Officer of Blue Shield of California from 2003 through 2012 and as Executive Vice President and the Chief Financial Officer of Gap, Inc. from 1999 to 2003. Prior thereto, Ms. Kunz served as the Chief Financial Officer of ITT Industries, Inc. from 1995 to 1999. From 1979 to 1995, she held senior financial management positions at General Motors Corporation, including Vice President and Treasurer.

 

Qualifications

 

Ms. Kunz possesses significant experience in management and financial matters, having served as the Chief Financial Officer of both public and private companies. Ms. Kunz previously served as the chairperson of our Audit and Finance Committee and was qualified as a financial expert under SEC guidelines. In addition, Ms. Kunz has considerable experience and expertise with our company having been a member of the Board for over 10 years.

 

SUSAN H. RATAJ

 

 

 

 

Age: 65

Board Committees:

Other Public Directorships:

Director Since: September 2015

Audit and Finance

Cabot Corporation

 

Nominating/Corporate Governance

 

 

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

Bayer A.G.

 

 

 

Ms. Rataj was elected as Cabot Corporation’s non-executive Chairman of the Board in March 2018. She was Chief Executive, Petrochemicals for BP, a global energy company, until she retired in April 2011. In this role, she held responsibility for all of BP’s global petrochemical operations. Prior thereto, Ms. Rataj held a variety of senior management positions with BP, most recently serving as Group Vice President, Health, Safety, Operations and Technology for the Refining and Marketing Segment.

 

Qualifications

 

Ms. Rataj possesses significant leadership experience and business expertise from her executive positions with BP. Ms. Rataj has lived and worked extensively in the Asia Pacific and European regions and brings a global perspective to the Board. In addition, Ms. Rataj brings public company director experience and knowledge of public company management and governance practices.

 

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PROPOSAL 1 - ELECTION OF DIRECTORS

 

GEORGE A. SCANGOS, Ph.D.

 

 

 

 

Age: 74

Board Committees:

Other Public Directorships:

Director Since: January 2011

Compensation (Chair)

VIR Biotechnology, Inc.

 

Nominating/Corporate Governance

 

 

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

Biogen Inc.

 

 

 

Exelixis, Inc.

 

 

 

Dr. Scangos has served as Chief Executive Officer and a director of Vir Biotechnology, Inc. since January 2017. From July 2010 to January 2017, Dr. Scangos served as the Chief Executive Officer and a director of Biogen Inc., a biopharmaceutical company. From 1996 to July 2010, Dr. Scangos served as the President and Chief Executive Officer of Exelixis, Inc., a drug discovery and development company. From 1993 to 1996, Dr. Scangos served as President of Bayer Biotechnology, where he was responsible for research, business development, process development, manufacturing, engineering and quality assurance of Bayer’s biological products. Before joining Bayer in 1987, Dr. Scangos was a Professor of Biology at Johns Hopkins University for six years. Dr. Scangos served as the Chair of the California Healthcare Institute in 2010 and was a member of the Board of the Global Alliance for TB Drug Development from 2006 until 2010. He serves on the Board of Advisors of the University of California, San Francisco and is currently an Adjunct Professor of Biology at Johns Hopkins University.

 

Qualifications

 

Dr. Scangos has extensive training as a scientist, significant knowledge and experience with respect to the biotechnology, healthcare and pharmaceutical industries, and a comprehensive leadership background resulting from service on various boards of directors and as an executive in the pharmaceutical industry.

 

DOW R. WILSON

 

 

 

 

Age: 63

Board Committees:

Other Public Directorships:

Director Since: March 2018

Audit and Finance (Chair)

Siemens Healthineers AG

 

Nominating/Corporate Governance

 

(nominated November 2022)

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

Varex Imaging Corporation

 

 

 

Varian Medical Systems, Inc.

 

 

 

Mr. Wilson was nominated to serve on the Board of Directors of Siemens Healthineers AG in November 2022. He retired as President and Chief Executive Officer of Varian Medical Systems, Inc. in April 2021, a position he held since September 2012. Prior to that, Mr. Wilson served in various capacities with Varian, including Executive Vice President and Chief Operating Officer from October 2011 to September 2012 and Vice President Varian Medical and President of Varian Medical Oncology Systems business from January 2005 to September 2011. Prior to joining Varian Medical in 2005, Mr. Wilson held various senior management positions with GE Healthcare, a diversified industrial company.

 

Qualifications

 

Mr. Wilson has a deep knowledge of the medical and healthcare industries as well as possesses significant experience in management and financial matters through serving as President and Chief Executive Officer of Varian Medical Systems. He also has critical insight into operational requirements of a company with worldwide reach, knowledge of corporate and business unit strategies and operational expertise, gained from his executive management experience at GE Healthcare and Varian Medical Systems.

 

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PROPOSAL 1 - ELECTION OF DIRECTORS

 

Vote Required

 

Under our majority voting standard, in uncontested elections of directors, such as this election, each director must be elected by the affirmative vote of a majority of the votes cast by the shares present at the annual meeting or represented by proxy and entitled to vote. A “majority of the votes cast” means that the number of votes cast “FOR” a director must exceed 50% of the votes cast with respect to that director. Abstentions and broker non-votes will not count as a vote “FOR” or “AGAINST” a nominee’s election and thus will have no effect in determining whether a director nominee has received a majority of the votes cast.

 

The Board of Directors recommends a vote FOR the election to the Board of each of the foregoing nominees.

 

The directors whose terms are not expiring this year and who will continue to serve as a director are listed below. They will continue to serve as directors for the remainder of their terms or such other date, in accordance with our Bylaws. Information regarding each of such directors is provided below as of December 31, 2022.

 

Directors Whose Terms Expire in 2024

 

MALA ANAND

 

 

 

 

Age: 55

Board Committees:

Other Public Directorships:

Director Since: March 2019

Compensation

None

 

Nominating/Corporate Governance

 

 

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

None

 

 

 

Ms. Anand has served as Corporate Vice President, Customer Experience of Microsoft since November 2019. Prior to joining Microsoft, she served as President, Intelligent Enterprise Solutions and Industries of SAP SE from October 2016 to October 2019. From July 2014 to October 2016, Ms. Anand served as Senior Vice President, Data & Analytics and Automation Software Platform group at Cisco Systems, Inc. and as Vice President and General Manager, Services Platform Group at Cisco from October 2007 to June 2014, and she holds multiple technology patents. Prior to that, Ms. Anand held various senior executive positions in software products, go-to-market, services, and technology businesses and served as entrepreneur in residence for Kleiner Perkins Caufield and Byers, a venture capital firm. She holds a bachelor’s degree in computer science from the University of Massachusetts and a master’s degree in computer science from Brown University.

 

Qualifications

 

Ms. Anand possesses significant leadership and experience in software and analytics, which provides her valuable insight into the role of digital technology in the life science field. In addition, Ms. Anand has executive and operation expertise gained from executive management experience at large, global organizations.

 

KOH BOON HWEE

 

 

 

 

Age: 72

Board Committees:

Other Public Directorships:

Director Since: May 2003

Executive

Singapore Exchange Ltd.

 

Nominating/Corporate Governance

 

 

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

Far East Orchard Ltd.

 

 

 

Sunningdale Tech, Ltd.

 

 

 

Yeo Hiap Seng Limited

 

 

 

Mr. Koh has served as non-Executive Chairperson of our Board since March 2017. As of January 2023, Mr. Koh is the non-Executive Chairman of the Singapore Exchange Ltd. He has been the managing partner of Altara Ventures Pte. Ltd., a venture capital fund, since December 2011. Mr. Koh has served as the non-Executive Chairperson of Sunningdale Tech Ltd., a privately held company, since April 2021. He served as the non-Executive Chairperson and Chief Executive Officer of Sunningdale Tech Ltd., a public company, from January 2009 to March 2021 and served as its Executive Chairperson and Chief Executive Officer from July

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PROPOSAL 1 - ELECTION OF DIRECTORS

 

2005 to January 2009. He served as the non-Executive Chairperson of Far East Orchard Ltd. from April 2013 to April 2022; served as the non-Executive Chairperson of Yeo Hiap Seng Ltd. from April 2010 to December 2019; as Executive Director of MediaRing Limited from February 2002 to August 2009; Chairperson of DBS Bank Ltd. from January 2006 to April 2010; Chairperson of Singapore Airlines from July 2001 to December 2005 and Chairperson of Singapore Telecom from April 1992 to August 2001. Mr. Koh spent fourteen years with Hewlett-Packard Company in its Asia Pacific region.

 

Qualifications

 

Mr. Koh possesses a strong mix of leadership and operational experience from his various senior positions with Sunningdale Tech, AAC Technologies, MediaRing Limited, DBS Bank, Singapore Airlines and Singapore Telecom. In addition, Mr. Koh has deep experience in the Asia Pacific region and brings that knowledge and perspective to the Board. Mr. Koh has extensive experience with our company and its predecessor, Hewlett-Packard, having served on our Board for over 10 years and having spent 14 years with Hewlett-Packard.

 

MICHAEL R. MCMULLEN

 

 

 

 

Age: 61

Board Committees:

Other Public Directorships:

Director Since: March 2015

Executive

None

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

Coherent, Inc.

 

 

 

Mr. McMullen, 61, has served as Chief Executive Officer since March 2015 and as President since September 2014. From September 2014 to March 2015 he also served as Chief Operating Officer. From September 2009 to September 2014, he served as Senior Vice President, Agilent and President, Chemical Analysis Group. Prior to that, he served in various capacities for Agilent, including as our Vice President and General Manager of the Chemical Analysis Solutions Unit of the Life Sciences and Chemical Analysis Group and Country Manager for Agilent's China, Japan and Korea Life Sciences and Chemical Analysis Group. Prior to that, Mr. McMullen served as Controller for the Hewlett‑Packard Company and Yokogawa Electric Joint Venture from July 1996 to March 1999. Mr. McMullen served as a member of the Board of Directors of Coherent, Inc. from September 2018 to July 2022.

 

Qualifications

 

Mr. McMullen has broad and deep experience with the company and its businesses having been an employee of the company and its predecessor, Hewlett-Packard, for over 20 years. During the course of his career, he has developed considerable expertise in, and in-depth knowledge of, our businesses from the perspective of an individual contributor and at numerous levels of management. This perspective gives valuable insight to the Board.

 

DANIEL K. PODOLSKY, M.D.

 

 

 

 

Age: 69

Board Committees:

Other Public Directorships:

Director Since: July 2015

Audit and Finance

None

 

Nominating/Corporate Governance

 

 

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

None

 

 

 

Dr. Podolsky has served as President of the University of Texas Southwestern Medical Center, a leading academic medical center, patient care provider and research institution, since September 2008. Previously Dr. Podolsky also served concurrently as Mallinckrodt Professor of Medicine at Harvard Medical School and the Chief of Gastroenterology at Massachusetts General Hospital. From 2005 to 2008, Dr. Podolsky served as Chief Academic Officer and Faculty Dean, Academic Programs of Partners Healthcare System, Inc., a non-profit health care system committed to patient care, research, teaching and service. Dr. Podolsky holds the Philip O’Bryan Montgomery, Jr., M.D. Distinguished Presidential Chair in Academic Administration, and the Doris and Bryan Wildenthal Distinguished Chair in Medical Science. He is a member of the Board of the Southwestern Medical Foundation and a member of the Scientific Advisory Board of Antibe Therapeutics, Inc., a company focused on the treatment of diseases characterized by inflammation, pain and/or vascular dysfunction.

 

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PROPOSAL 1 - ELECTION OF DIRECTORS

 

Qualifications

 

Dr. Podolsky’s current responsibilities in leading a large academic medical center give him relevant insight into healthcare delivery and bring scientific expertise to the Board.

 

Directors Whose Terms Expire in 2025

 

HANS E. BISHOP

 

 

 

 

Age: 58

Board Committees:

Other Public Directorships:

Director Since: July 2017

Compensation

Lyell Immunopharma, Inc.

 

Nominating/Corporate Governance

Sana Biotechnology, Inc.

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

Avanir Pharmaceuticals, Inc.

 

 

 

Celgene Corporation

 

 

 

Juno Therapeutics, Inc.

 

 

 

JW (Cayman) Therapeutics Co. Ltd.

 

 

 

Mr. Bishop is the President, Co-Founder and Co-Chairman of Altos Labs, Inc. since January 2022. He is a member of the Board of Directors of Lyell Immunopharma, Inc. since August 2018. Mr. Bishop has served as Chairman of the Board of Directors of Sana Biotechnology, Inc. since August 2018. He has been a member of the board of directors of Ophirex, Inc. since March 2020. He served as a director of JW (Cayman) Therapeutics Co. Ltd. from September 2013 to December 2022. Mr. Bishop served as Chief Executive Officer of GRAIL, Inc. from June 2019 to October 2021, and served as a member of GRAIL’s Board of Directors from August 2016 to October 2021. He served as a member of the Board of Directors of Celgene Corporation from April 2018 to November 2019 when Celgene Corporation was acquired by Bristol-Myers Squibb Company. Mr. Bishop served as President, Chief Executive Officer and a member of the Board of Directors of Juno Therapeutics, Inc. from September 2013 to March 2018 when Juno was acquired by Celgene Corporation. From February 2012 until October 2012, Mr. Bishop was the chief operating officer of Photothera Inc., a late-stage medical device company owned by Warburg Pincus, and he continued working with Warburg Pincus as an Executive in Residence until October 2013. Prior to joining Photothera Inc., Mr. Bishop served as executive vice president and chief operating officer at Dendreon Corporation, a publicly traded biopharmaceutical company, from January 2010 to September 2011. Mr. Bishop has also served as the president of the specialty medicine business at Bayer Healthcare Pharmaceuticals Inc. from December 2006 to January 2010, where he was responsible for a diverse portfolio of neurology, oncology and hematology products.

 

Qualifications

 

Mr. Bishop brings a valuable set of skills to the Board through his broad experience as an operating officer within the pharmaceutical industry and executive experience in the biotechnology industry.

 

OTIS W. BRAWLEY, M.D.

 

 

 

 

Age: 63

Board Committees:

Other Public Directorships:

Director Since: November 2021

Compensation

Incyte Corporation

 

Nominating/Corporate Governance

Lyell Immunopharma, Inc.

 

 

 

PDS Biotechnology Corp

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

None

 

 

 

Dr. Brawley has served as the Bloomberg Distinguished Professor of Oncology and Epidemiology at Johns Hopkins University since 2019. He has served on the board of directors of Incyte Corporation since September 2021. He is on the board of directors of Lyell Immunopharma, Inc. since April 2021. Dr. Brawley is a member of the board of directors of PDS Biotechnology, Inc. since November 2020. Dr. Brawley served as the Chief Medical and Scientific Officer at the American Cancer Society from 2007 to 2018. He served as an Internist and Oncologist and Professor of Hematology, Oncology, Medicine and Epidemiology at Emory University from 2001 to 2018. Dr. Brawley has served on the board of directors of Incyte Corporation, a public biotechnology company, since September 2021. He has served on the board of directors of Lyell Immunopharma, Inc., a public biotechnology company, since April 2021. He has served on the board of directors of PDS Biotechnology Corp, a public biotechnology company, since November 2020.

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PROPOSAL 1 - ELECTION OF DIRECTORS

 

 

Qualifications

 

Dr. Brawley brings to the Board scientific expertise and relevant insight into healthcare delivery through his current responsibilities in a leading large academic medical center.

 

MIKAEL DOLSTEN, M.D., Ph.D.

 

 

 

 

Age: 64

Board Committees:

Other Public Directorships:

Director Since: September 2021

Audit and Finance

Vimian Group

 

Nominating/Corporate Governance

 

 

 

 

 

 

 

 

Former Public Directorships Held During the Past Five Years:

 

Karyopharm Therapeutics Inc.

 

 

 

Dr. Dolsten has served on the board of directors of Vimian Group, a public company supporting veterinary professionals, since April 2021. He has also served as President of Worldwide Research, Development and Medical, Chief Scientific Officer and Executive Vice President of Pfizer since 2010. He served as President of Worldwide Research and Development and Senior Vice President of Pfizer from May 2010 until December 2010 and President of Pfizer BioTherapeutics Research & Development Group and Senior Vice President of Pfizer from 2009 until 2010. From 2008 to 2009, Dr. Dolsten served as Senior Vice President of Wyeth Pharmaceuticals, Inc., a public biopharmaceutical company that was acquired by Pfizer in 2009, and President of Wyeth Research from 2008 to 2009. Prior to joining Wyeth, Dr. Dolsten was a Private Equity Partner at Orbimed Advisors, LLC and Executive Vice President, Head of Pharma Research at Boehringer Ingelheim, a pharmaceutical company. Dr. Dolsten also previously held research leadership positions at AstraZeneca plc, Pharmacia and Upjohn Company. Dr. Dolsten served on the board of directors of Karyopharm Therapeutics Inc., a public pharmaceutical company from March 2015 to December 2021.

 

Qualifications

 

Dr. Dolsten has significant experience in the pharmaceutical and biotechnology industries, including his experience serving in senior management positions with Wyeth Pharmaceuticals, Inc., Boehringer Ingelheim, AstraZeneca plc, Pharmacia and Upjohn Company. In addition, Dr. Dolsten brings considerable public company director experience as well as extensive experience within our industry and expertise in business finance.

 

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COMPENSATION OF NON-EMPLOYEE DIRECTORS

 

COMPENSATION OF NON-EMPLOYEE DIRECTORS

 

Directors who are employed by us do not receive any compensation for their Board services. As a result, Mr. McMullen, our Chief Executive Officer, received no additional compensation for his services as a director. The general policy of the Board is that compensation for non-employee directors should be a mix of cash and equity-based compensation that is competitive with the compensation paid to non-employee directors within our peer group. The non-employee directors’ compensation plan year begins on March 1 of each year (the “Plan Year”).

 

Summary of Non-Employee Director Annual Compensation for the 2022 Plan Year

 

The table below sets forth the annual retainer, equity grants and committee premiums for the non-employee directors and the Non-Executive Chairperson for the 2022 Plan Year. Each non-employee director may elect to defer all or part of the cash compensation to the 2005 Deferred Compensation Plan for Non-Employee Directors (“Director Deferral Plan”). Any deferred cash compensation is notionally invested into deferred shares of our common stock.

 

Board Compensation Elements

 

 

Member (1)

Chair (2)

Board Cash Retainer

 

$105,000

$155,000

Audit and Finance Committee Retainer

 

$10,000

$25,000

Compensation Committee Retainer

 

$20,000

Nominating/Corporate Governance Committee Retainer

 

Annual Stock Grant (3)

 

$235,000

 value

 

(1)
Non-employee directors who serve as a member of the Audit and Finance Committee (excluding the Audit and Finance Committee Chair) receive an additional retainer which is payable in cash at the beginning of each Plan Year.
(2)
Non-employee directors who serve as the chairperson of the Board or a Board committee (except that the Non-Executive Chairperson of the Board does not receive an additional retainer for service as chairperson of any Board committee) receive an additional retainer which is payable in cash at the beginning of each Plan Year.
(3)
The stock is granted on the later of (i) March 1 or (ii) the first trading day after each annual meeting of stockholders. The number of shares underlying the stock grant is determined by dividing $235,000 by the average fair market value of our common stock over 20 consecutive trading days up to and including the day prior to the grant date. The stock grant vests immediately upon grant and may be deferred pursuant to the Director Deferral Plan.

 

A non-employee director who joins the Board after the start of the Plan Year will have his or her cash retainer, equity grant and committee premium pro-rated based upon the remaining days in the Plan Year that the director will serve.

 

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COMPENSATION OF NON-EMPLOYEE DIRECTORS

 

Non-Employee Director Compensation for Fiscal Year 2022

 

The table below sets forth information regarding the compensation earned by each of our non-employee directors during the fiscal year ended October 31, 2022:

 

 

 

Cash

 

Non-Executive

 

Committee

 

Audit Committee

 

Stock

 

 

 

 

Retainer (1)

 

Chair Retainer (1)

 

Chair Retainer (1)

 

Member Retainer (1)

 

Awards (2)(3)

 

Total

Name

 

($)

 

($)

 

($)

 

($)

 

($)

 

($)

Mala Anand

 

103,333

 

 

 

 

244,224

 

347,557

Hans E. Bishop

 

103,333

 

 

 

 

244,224

 

347,557

Otis W. Brawley, M.D.

 

98,493

 

 

 

 

244,224

 

342,717

Mikael Dolsten, M.D., Ph.D.

 

103,333

 

 

 

10,000

 

244,224

 

357,557

Koh Boon Hwee (4)

 

103,333

 

155,000

 

 

 

244,224

 

502,557

Heidi K. Kunz

 

103,333

 

 

 

 

244,224

 

347,557

Daniel K. Podolsky, M.D.

 

103,333

 

 

 

10,000

 

244,224

 

357,557

Susan H. Rataj

 

103,333

 

 

 

 

10,000

 

244,224

 

357,557

George A. Scangos, Ph.D.

 

103,333

 

 

20,000

 

 

244,224

 

367,557

Dow R. Wilson

 

103,333

 

 

 

25,000

 

244,224

 

372,557

 

(1)
Reflects all cash compensation earned or paid during fiscal year 2022, including amounts deferred pursuant to the Director Deferral Plan. Dr. Podolsky elected to defer 50%, and Mr. Bishop and Dr. Brawley each elected to defer 100% of all cash fees earned in fiscal year 2022 to the Director Deferral Plan. The number of deferred shares of our common stock notionally credited in lieu of cash pursuant to the Director Deferral Plan is determined by dividing the dollar value of the deferred cash amount by the twenty (20) day average fair market value for the applicable deferral date.
(2)
Reflects the aggregate grant date fair market value for stock awards granted in fiscal year 2022 calculated in accordance with ASC Topic 718. For more information regarding our application of ASC Topic 718, including the assumptions used in the calculations of these amounts, please refer to Note 4 of our Consolidated Financial Statements contained in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022. The dollar values of the stock awards represent stock grants of 1,785 shares for each non-employee director.
(3)
Stock Awards granted to non-employee directors vest immediately upon grant. Therefore, there are no unvested stock awards outstanding at fiscal year-end.
(4)
Mr. Koh has served as the Non-Executive Chairperson of the Board since March 15, 2017.

 

Non-Employee Director Reimbursement

 

Non-employee directors are reimbursed for travel and other out-of-pocket expenses incurred in connection with their service on our Board.

 

Non-Employee Director Stock Ownership Guidelines

 

Non-employee directors are required to own shares of our common stock having a value of at least six times an amount equal to the annual cash retainer. The shares counted toward the ownership guidelines include shares owned outright and the shares of our common stock in the non-employee director’s deferred compensation account. For recently appointed non-employee directors, these ownership levels must be attained within five years from the date of their initial election or appointment to the Board of Directors. All of our incumbent non-employee directors have either achieved the recommended ownership level or are expected to achieve the recommended ownership level within five years of their initial election or appointment to our Board.

 

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CORPORATE GOVERNANCE

 

CORPORATE GOVERNANCE

 

We have had formal corporate governance standards in place since our inception in 1999. We have reviewed internally and with the Board the provisions of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”), the rules of the Securities and Exchange Commission (“SEC”) and the New York Stock Exchange’s (“NYSE”) corporate governance listing standards regarding corporate governance policies and processes and are in compliance with the rules and listing standards.

 

We have adopted charters for our Audit and Finance Committee, Compensation Committee, Executive Committee and Nominating/Corporate Governance Committee consistent with the applicable rules and standards. Our committee charters, Amended and Restated Corporate Governance Standards and Standards of Business Conduct are located in the Investor Relations section of our website and can be accessed by clicking on “Committee Charters” or “Governance Documents” in the “Governance” section of our web page at www.investor.agilent.com.

 

Board Leadership Structure

 

We currently separate the positions of chief executive officer and chairperson of the Board. Mr. Koh was appointed chairperson of the Board in March 2017. The responsibilities of the chairperson of the Board include: setting the agenda for each Board meeting in consultation with the chief executive officer; chairing the meetings of independent directors; and facilitating and conducting, with the Nominating/Corporate Governance Committee, the annual self-assessments by the Board and each standing committee of the Board, including periodic performance reviews of individual directors. Separating the positions of chief executive officer and chairperson of the Board allows our chief executive officer to focus on our day-to-day business, while allowing the chairperson of the Board to lead the Board in its fundamental role of providing advice to and independent oversight of management. The Board believes that having an independent director serve as chairperson of the Board is the appropriate leadership structure for the company at this time.

 

However, our Corporate Governance Standards permit the roles of the chairperson of the Board and the chief executive officer to be filled by the same or different individuals. This provides the Board with flexibility to determine whether the two roles should be combined in the future based on our needs and the Board’s assessment of our leadership from time to time. Our Corporate Governance Standards provide that in the event that the chairperson of the Board is also the chief executive officer, the Board may consider the election of an independent Board member as a lead independent director.

 

In 2022, we amended the Corporate Governance Standards to remove the mandatory retirement age for directors. The Board made the change in recognition of the contribution that experienced directors, with knowledge of the company, bring to effective Board oversight and of the active role the Board plays in director refreshment and management.

 

Board Assessment

 

We annually evaluate the performance of the Board and its Committees. The Board believes it is important to assess both its overall performance and the performance of its Committees and to solicit and act upon feedback received, where appropriate. As part of the Board’s self-assessment process, directors consider various topics related to Board composition, structure, effectiveness, and responsibilities, as well as the overall mix of director skills, experience, and backgrounds. From time to time, these evaluations are conducted by an independent third party to refresh the process.

 

Board’s Role in Strategy and Risk Oversight

 

One of the key oversight practices of our Board is to engage deeply with management on our strategy, strategic planning process and business-related priorities as we navigate an evolving industry environment, consider industry trends, our competitive position, technological developments and stakeholder-related developments relevant to our business. The Board conducts a comprehensive review of the Company’s strategic plans and overall business every year and works with management to evaluate potential opportunities and risks and assess the Company’s progress in meeting various strategic goals. This process enables the Board to oversee, assess and consider adjustments with management to the Company’s strategy over the short, intermediate and long term.

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CORPORATE GOVERNANCE

 

 

The Board has the ultimate responsibility for, and is actively engaged in, oversight of the Company’s risk management both directly and through its committees. The full Board is kept abreast of risk oversight and other activities of its committees through reports of the committee chairpersons to the full Board during Board meetings. Senior management may also provide risk assessment reports directly to the Board on certain issues.

 

The Audit and Finance Committee has primary responsibility for overseeing our enterprise risk management program, which encompasses, among others, compliance and regulatory, information technology and cybersecurity, environmental and sustainability, key site and public health risks. The Audit and Finance Committee receives updates and discusses individual and overall risk areas during its meetings, including our financial risk assessments, risk management policies and major financial risk exposures and the steps management has taken to monitor and control such exposures.

 

The Compensation Committee oversees risks associated with our compensation policies and practices with respect to both executive compensation and compensation generally. The Compensation Committee receives reports and discusses whether our compensation policies and practices create risks that are reasonably likely to have a material adverse effect on the company. The Compensation Committee also oversees risks relating to organization talent and culture and human capital management, including diversity and inclusion programs and initiatives.

 

The Nominating/Corporate Governance Committee oversees the management of risks related to corporate governance matters, including director independence, Board composition and succession and overall Board effectiveness, as well as risks and opportunities associated with ESG matters.

 

Majority Voting for Directors

 

Our Bylaws provide for majority voting of directors regarding director elections. In an uncontested election, any nominee for director shall be elected by the vote of a majority of the votes cast with respect to the director. A “majority of the votes cast” means that the number of shares voted “FOR” a director must exceed 50% of the votes cast with respect to that director. The “votes cast” shall include votes to withhold authority and exclude votes to “ABSTAIN” with respect to that director’s election. If a director is not elected due to a failure to receive a majority of the votes cast and his or her successor is not otherwise elected and qualified, the director shall promptly tender his or her resignation following certification of the stockholder vote.

 

The Nominating/Corporate Governance Committee will consider the resignation offer and recommend to the Board whether to accept or reject it, or whether other action should be taken. The Board will act on the Nominating/Corporate Governance Committee’s recommendation within 90 days following certification of the stockholder vote. Thereafter, the Board will promptly disclose their decision and the rationale behind it in a press release to be disseminated in the same manner as company press releases typically are distributed. Any director who tenders his or her resignation pursuant to this provision shall not participate in the Nominating/Corporate Governance Committee recommendation or Board action regarding whether to accept the resignation offer.

 

Board Communications

 

Stockholders and other interested parties may communicate with the Board and our Non-Executive Chairperson of the Board of Directors by filling out the form at “Contact Chairperson” under “Governance” at www.investor.agilent.com or by writing to Koh Boon Hwee, c/o Agilent Technologies, Inc., General Counsel, 5301 Stevens Creek Blvd., MS 1A-11, Santa Clara, California 95051. The General Counsel will perform a legal review in the normal discharge of duties to ensure that communications forwarded to the Non-Executive Chairperson preserve the integrity of the process. For example, items that are unrelated to the duties and responsibilities of the Board such as spam, junk mail and mass mailings, product complaints, personal employee complaints, product inquiries, new product suggestions, resumes and other forms of job inquiries, surveys, business solicitations or advertisements (the “Unrelated Items”) will not be forwarded to the Non-Executive Chairperson. In addition, material that is unduly hostile, threatening, illegal or similarly unsuitable will not be forwarded to the Non-Executive Chairperson.

 

Any communication that is relevant to the conduct of our business and is not forwarded will be retained for one year (other than Unrelated Items) and made available to the Non-Executive Chairperson and any other independent director on request. The

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CORPORATE GOVERNANCE

 

independent directors grant the General Counsel discretion to decide what correspondence shall be shared with our management and specifically instruct that any personal employee complaints be forwarded to our Human Resources Department.

 

Director Stockholder Meeting Attendance

 

We encourage, but do not require, our Board members to attend the annual meeting of stockholders.

 

Director Independence

 

We have adopted standards for director independence in compliance with the NYSE corporate governance listing standards. These independence standards are set forth in our Corporate Governance Standards. The Board has affirmatively determined that all of our directors meet these independence standards with the exception of Michael R. McMullen because of his role as our President and Chief Executive Officer.

 

Our non-employee directors meet at regularly scheduled executive sessions without management. The Non-Executive Chairperson of the Board presides at executive sessions of the non-employee directors.

 

Compensation Committee Member Independence

 

We have adopted standards for compensation committee member independence in compliance with the NYSE corporate governance listing standards. In affirmatively determining the independence of any director who will serve on the compensation committee, the Board of Directors considers all factors specifically relevant to determining whether such director has a relationship to the company or any of its subsidiaries which is material to such director’s ability to be independent from management in connection with the duties of a compensation committee member, including, but not limited to:

the source of compensation of such director, including any consulting, advisory or other compensatory fee paid by the company to such director; and
whether such director is affiliated with the company or a subsidiary of the company.

 

Director Nomination Criteria: Qualifications and Experience

 

The Nominating/Corporate Governance Committee will consider director candidates for nomination by stockholders, provided that the recommendations are made in accordance with the procedures described in the section entitled “General Information” located at the end of this proxy statement. Candidates recommended for nomination by stockholders that comply with these procedures will receive the same consideration as other candidates recommended by the Nominating/Corporate Governance Committee.

 

We typically hire a third-party search firm to help identify and facilitate the screening and interview process of candidates for director. To be considered by the Nominating/Corporate Governance Committee, a director candidate must have:

a reputation for personal and professional integrity and ethics;
executive or similar policy-making experience in relevant business or technology areas or national prominence in an academic, government or other relevant field;
breadth of experience;
soundness of judgment;
the ability to make independent, analytical inquiries;
the willingness and ability to devote the time required to perform Board activities adequately;
the ability to represent the total corporate interests of the company; and
the ability to represent the long-term interests of stockholders as a whole.

 

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In addition to these minimum requirements, the Nominating/Corporate Governance Committee will also consider whether the candidate’s skills are complementary to the existing Board members’ skills; the diversity of the Board with respect to factors such as age, race, gender, national origins, experience in technology, manufacturing, finance and marketing, international experience and culture; and the Board’s needs for specific operational, management or other expertise. The Nominating/Corporate Governance Committee from time to time reviews the appropriate skills and characteristics required of board members, including factors that it seeks in board members such as diversity of business experience, viewpoints and personal background, and diversity of skills in technology, finance, marketing, international business, financial reporting and other areas that are expected to contribute to an effective Board of Directors. In evaluating potential candidates for the Board of Directors, the Nominating/Corporate Governance Committee considers these factors in the light of the specific needs of the Board of Directors at that time. The search firm screens the candidates, does reference checks, prepares a biography of each candidate for the Nominating/Corporate Governance Committee to review and helps set up interviews. The Nominating/Corporate Governance Committee and our Chief Executive Officer interview candidates that meet the criteria, and the Nominating/Corporate Governance Committee selects candidates that best suit the Board’s needs.

 

Our Bylaws provide a proxy access right for stockholders, pursuant to which a stockholder, or a group of up to 20 stockholders, owning at least three percent of our outstanding common stock continuously for at least three years, may nominate and include in our proxy materials director nominees constituting up to the greater of two individuals or twenty percent of the Board, subject to certain limitations and provided that the stockholders and the nominees satisfy the requirements specified in our Bylaws.

 

 

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Committees of the Board of Directors

 

Our Board met six times in fiscal 2022. With the exception of one director who attended 71% of the aggregate number of Board and applicable committee meetings, all other directors attended at least 75% of the aggregate number of Board and applicable committee meetings held when the director was serving on the Board. Set forth below are the four standing committees of the Board, their primary duties, their members and the number of meetings held during fiscal 2022.

 

Audit and Finance Committee

Members

Meetings

 



Responsible for the oversight of:

Dow R. Wilson†(Chair)
Mikael Dolsten, M.D., Ph.D.
Daniel K. Podolsky, M.D.
Susan H. Rataj

11

 

 

o

the quality and integrity of our consolidated financial statements;

 

 

o

compliance with legal and regulatory requirements, including our Standards of Business Conduct, and material reports or inquiries from regulators;

 

 

o

qualifications and independence of our independent registered public accounting firm;

 

 

o

performance of our internal audit function and independent registered public accounting firm; and

 

 

o

other significant financial matters, including borrowings, currency exposures, dividends, share issuance and repurchase and the financial aspects of our benefit plans.

 



Has the sole authority to appoint, compensate, oversee and replace the independent registered public accounting firm, reviews its internal quality-control procedures, assesses its independence and reviews all relationships between the independent auditor and the company;

 



Approves the scope of the annual internal and external audit;

 



Pre-approves all audit and non-audit services and the related fees;

 



Reviews our consolidated financial statements and disclosures in our reports on Form 10-K and Form 10-Q;

 



Monitors the system of internal controls over financial reporting and reviews the integrity of the company’s financial reporting process;

 



Reviews funding and investment policies and their implementation and the investment performance of our benefit plans;

 



Establishes and oversees procedures for (a) complaints received by the company regarding accounting, internal accounting controls or auditing matters, and (b) the confidential anonymous submission by employees of the company of concerns regarding questionable accounting or auditing matters; and

 



Reviews disclosures from our independent registered public accounting firm required by the applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communications with the audit committee.

 

Compensation Committee

Members

Meetings

 



Approves the corporate goals and objectives related to the compensation of the chief executive officer and other executives, evaluates their performance and approves their annual compensation packages;

George A. Scangos, Ph.D. (Chair)
Mala Anand
Hans E. Bishop
Otis W. Brawley, M.D.
Heidi K. Kunz

3

 



Monitors and approves our benefit plan offerings;

 



Reviews and approves the Compensation Discussion and Analysis;

 



Oversees the administration of our incentive compensation, variable pay and stock programs;

 



Assesses the impact of our compensation programs and arrangements on company risk;

 



Recommends to the Board the annual retainer fee as well as other compensation for non-employee directors; and

 



Has sole authority to retain and terminate executive compensation consultants.

 

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Nominating/Corporate Governance Committee

Members

Meetings

 



Recommends the size and composition of the Board, committee structures and membership;

Koh Boon Hwee (Chair)
Mala Anand
Hans E. Bishop
Otis W. Brawley, M.D.
Mikael Dolsten, M.D.
Heidi K. Kunz
Daniel K. Podolsky, M.D.
Susan H. Rataj
George A. Scangos, Ph.D.
Dow R. Wilson

5

 



Establishes criteria for the selection of new directors and proposes a slate of directors for election at each annual meeting;

 



Reviews special concerns which require the attention of non-employee directors;

 



Reviews matters of corporate responsibility and sustainability, including potential impacts of environmental and social issues;

 



Oversees the evaluation of Board members and makes recommendations to improve the Board’s effectiveness; and

 



Develops and reviews corporate governance principles.

 

Executive Committee

Members

Meetings

 



Meets or takes written action between meetings of the Board; and

Koh Boon Hwee (Chair)
Michael R. McMullen

0

 



Has full authority to act on behalf of the Board to the extent permitted by law with certain exceptions.

 

 

 

† Financial Expert

Our Standards of Business Conduct and Director Code of Ethics require that all employees and directors avoid conflicts of interests that interfere with the performance of their duties or the best interests of the company. In addition, we have adopted a written Related Person Transactions Policy and Procedures (the “Related Person Transactions Policy”) that prohibits any of our executive officers, directors or any of their immediate family members from entering into a transaction with the company, except in accordance with the policy. For purposes of the policy, a “related person transaction” includes any transaction involving the company and any related person that would be required to be disclosed pursuant to Item 404(a) of Regulation S-K.

Our Related Person Transactions Policy provides that the Nominating/Corporate Governance Committee or, at the Nominating/Corporate Governance Committee’s request, the disinterested members of the Board review related person transactions in accordance with the terms of the policy. In making the determination whether to approve or ratify a transaction, the Nominating/Corporate Governance Committee or the disinterested members of the Board shall consider all relevant available information and, as appropriate, must take into consideration the following:

the size of the transaction and the amount payable to the related person;
the nature of the interest of the related person in the transaction;
whether the transaction may involve a conflict of interest; and
whether the transaction involves the provision of goods or services to the company that are available from unaffiliated third parties and, if so, whether the transaction is on terms and made under circumstances that are at least as favorable to the company as would be available in comparable transactions with or involving unaffiliated third parties.

The Related Person Transactions Policy provides for standing pre-approval of the following transactions with related persons:

(a)
Any transaction with another company at which a related person’s only relationship is as an employee (other than an executive officer or an equivalent), director or beneficial owner of less than 10% of that company’s shares, if the aggregate amount involved does not exceed the greater of (i) $1,000,000, or (ii) 2 percent of that company’s total annual revenues.
(b)
Any charitable contribution, grant or endowment by the company to a charitable organization, foundation or university at which a related person’s only relationship is as an employee (other than an executive officer or an equivalent), a director or a trustee, if the aggregate amount involved does not exceed the lesser of (i) $500,000, or (ii) 2 percent of the charitable organization’s total annual receipts.

We will disclose the terms of related person transactions in our filings with the SEC to the extent required.

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We purchase services, supplies, and equipment in the normal course of business from many suppliers and sell or lease products and services to many customers. In some instances, these transactions occur with companies with which members of our management or Board have relationships as directors or executive officers. For transactions entered into during fiscal year 2022, no related person had or will have a direct or indirect material interest. While not required under the policy, the members of the Nominating/Corporate Governance Committee, excluding the related person for his company’s transactions only, reviewed, approved and ratified certain transactions with Altos Labs, Inc. ("Altos Labs"), Pfizer Inc. (“Pfizer”), the University of Texas Southwestern Medical Center (“UTSW”) and Vir Biotechnology, Inc. (“Vir”).

Hans E. Bishop is President, Co-Founder and Co-Chairman of Altos Labs, Mikael Dolsten, M.D., Ph.D., is President of Worldwide Research, Development and Medical, Chief Scientific Officer and Executive Vice President of Pfizer, Daniel K. Podolsky, M.D., is the President of UTSW and George A. Scangos, Ph.D., is Chief Executive Officer and director of Vir.

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Dear Stockholder,

 

Fiscal year 2022 marked another successful year for Agilent. Employees began returning to the office as the risks from COVID-19 slowly subsided; however, we continued to face significant macro-economic challenges. Supply chains remained disrupted while the conflict in Ukraine and rapid inflation in many parts of the world put added pressure on our business. Despite these continuing and new challenges, our One Agilent team again rose to the challenge and continued to support our customers and team members while continuing to deliver the growth our shareholders expect. Adjusted earnings per share grew 20.3% over fiscal year 2021, driven by an 8.4% increase in revenue coupled with disciplined expense management that led to adjusted operating margins of 27.1%, a full 160 basis point improvement. The company achieved these remarkable results with an engaged team as evidenced by receiving Great Place to Work certifications in more than 20 countries/regions. Despite persistent headwinds, Agilent continued to deliver exceptional results.

 

When considering our executive compensation program, we continue to believe that our design is well aligned with shareholder interests. Our executive team is motivated to deliver double-digit EPS growth and relative share price gains through our long-term performance plan, and they are rewarded for meeting and exceeding our aggressive annual revenue and operating margin plans through the Pay for Results short-term incentive plan. These programs are working well, and our shareholders agree. During our annual outreach to our largest shareholders, they expressed support for our program and encouraged us to maintain the design. Our 91% support for our Management Say on Pay proposal last year is further evidence of this strong support. We believe that consistency of design drives the desired behaviors, and as such, we plan no significant changes to our executive compensation program for fiscal year 2023.

 

In the Compensation Discussion and Analysis that follows, we discuss our fiscal year 2022 CEO and executive officer compensation in more detail. You will see that our commitment to both pay for performance and clear, transparent disclosure is strong. We encourage you to review this analysis carefully and believe you will agree that our executive compensation program is achieving our objectives of supporting the company’s growth strategy and creating long-term stockholder value.

 

Compensation Committee

George A. Scangos, Ph.D., Chairperson

Mala Anand

Hans E. Bishop

Otis Brawley, M.D.

Heidi K. Kunz

 

 

 

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COMPENSATION DISCUSSION AND ANALYSIS

 

This section of the proxy statement describes the compensation arrangements for our Named Executive Officers (NEOs) for fiscal year 2022, which were exclusively determined by our independent Compensation Committee and which are further detailed in the 2022 Summary Compensation Table and other compensation tables contained in this proxy statement. This Compensation Discussion and Analysis (CD&A) also includes additional information on how the Compensation Committee arrived at its fiscal year 2022 compensation decisions for the NEOs and an overview of our executive compensation philosophy and our executive compensation program.

 

Our NEOs for fiscal year 2022 are as follows:

Michael R. McMullen, President and Chief Executive Officer (CEO)
Robert McMahon, Senior Vice President, Chief Financial Officer (CFO)
Jacob Thaysen, Senior Vice President, President Life Sciences and Applied Markets Group (LSAG)
Henrik Ancher-Jensen, Senior Vice President, President Order Fulfillment and Supply Chain (OFS)
Sam Raha, Senior Vice President, President Diagnostic and Genomics Group (DGG)

 

 

In this CD&A, we provide the following:

Executive Summary
Determining Executive Pay
Fiscal year 2022 Compensation
Additional Information

 

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Executive Summary

 

Fiscal year 2022 at a glance:

 

Performance and Compensation Highlights

CEO and NEO Compensation

Excellent financial performance in a high inflationary and volatile market
Continued investment in high-growth businesses.
Strong alignment between executive compensation and superior financial results (e.g., 20% EPS growth, 160 bps operating margin expansion).

 

 

 

 

 

 

 

Total Target

Compensation

% of Total Target

Compensation at Risk

 

 

McMullen

$15,072,000

92%

 

 

Other NEOs (average)

$3,774,500

83%

 

 

 

 

FY22 Executive Compensation Program Highlights

Pay for Performance

Maintained earnings per share and relative TSR in the long-term performance plan (LTPP) at 60% overall weight.
Maintained restricted stock units and stock options in long-term incentive (LTI) mix with 20% weighting for each.
Maintained operating margin and revenue in short-term incentive (STI) program.
As a result of strong company performance, the STI program financial targets for total Agilent results paid out at 128% of target. This represents the annual payout percentage for Agilent's CEO, CFO and SVP of Order Fulfillment, whose payouts are 100% determined based on total Agilent results.
25% of the short-term incentive payout for Agilent’s business presidents is determined based on their respective group's revenue and operating margin, where the payout was 157% of target for LSAG and 64% of target for DGG.
25% of the short-term incentive payout for Agilent's business presidents is determined based on select key business initiatives (KBIs) approved by the Compensation Committee. These KBIs paid out at 133% on average in fiscal year 2022.
In fiscal year 2022, the payout % achieved for our LTI-TSR grants was 200% as our relative TSR was at the 78th percentile of our S&P 500 Health Care and Materials Indexes peer group. The payout % achieved for the LTI-EPS grants was 147% as we exceeded our targets in two of the three years in the performance period.

img118230385_3.jpg 

 

Stockholder Engagement

We are pleased with the 91% support for our 2022 Say-on-Pay proposal and continue to engage with stockholders regarding our executive pay program.

In 2022, consistent with prior years, we solicited input from our largest stockholders on our current program, and our plan is to make no changes for fiscal year 2023.

 

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Financial Performance Highlights

 

Year-over-year financial results as compared to fiscal year 2021 results:

 

Measure

 

Fiscal 2021

 

Fiscal 2022

 

YOY %

S&P 500 TSR*

 

  9,625.02

 

  8,218.70

 

(14.6%)

Agilent TSR*

 

$156.49

 

$138.35

 

(11.6%)

Revenue (Actual)

 

$6.3B

 

$6.8B

 

8.4%

Operating Margin

 

21.3%

 

23.6%

 

10.8%

Operating Margin (non-GAAP)**

 

25.5%

 

27.1%

 

6.3%

Diluted EPS

 

$3.94

 

$4.18

 

6.1%

Diluted EPS (non-GAAP)**

 

$4.34

 

$5.22

 

20.3%

 

* Stock prices shown for fiscal years 2021 and 2022 are as of 10/31/2021 and 10/31/2022 respectively and include reinvested dividends.

** Non-GAAP operating margin and non-GAAP diluted EPS are further defined and reconciled to the most directly comparable GAAP financial measures in Appendix A to this proxy statement.

 

Correlation of CEO Total Direct Compensation to Company Performance

 

The chart below demonstrates how the historical total direct compensation (salary, actual bonus and grant value of equity awards) of our CEO compares to our five-year indexed TSR. The numbers shown as the indexed TSR for each year are based on the dollar amount a stockholder would have held at the end of the indicated fiscal year assuming the stockholder invested $100 in Agilent common stock on October 31, 2017.

 

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Aligning CEO and NEO Pay with Performance

 

For fiscal year 2022, approximately 92% of Mr. McMullen’s and 83% of our other NEOs’ total direct compensation consisted of short-term and long-term incentives and was “at risk”— which means that this component can vary year to year depending on the performance of the company and our stock price performance.

 

img118230385_5.jpg 

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Stockholder Outreach

 

We received 91% stockholder support on our 2022 Say-on-Pay proposal, along with support from the major stockholder advisory firms. While pleased with these results, our Compensation Committee and members of management believe ongoing dialog with stockholders regarding executive compensation is crucial. In the summer of 2022, we communicated with many of our largest stockholders to recap our program for fiscal year 2022 and discuss our strategy for fiscal year 2023. The process affirmed our executive compensation program and supported our plan to maintain the current design for fiscal year 2023.

 

Fiscal year 2022 Program Highlights

 

We maintained operating margin and revenue as the financial metrics in the short-term incentive program and earnings per share and relative TSR as our metrics in the long-term incentive program.

 

Our mix of long-term incentive vehicles was also unchanged from fiscal year 2021, with 60% of the long-term incentive award delivered in long-term performance shares (30% tied to an earnings per share metric and 30% tied to a relative TSR metric); 20% delivered in restricted stock units; and 20% delivered in non-qualified stock options. We intend to maintain this long-term incentive mix in fiscal year 2023.

 

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Determining Executive Pay

 

Our executive pay decisions are grounded in a core philosophy that applies to all elements of compensation. Our compensation philosophy is intended to:

Align executive interests with stockholders;
Motivate and reward for superior EPS growth;
Support our short- and long-term business strategy;
Deliver competitive total direct compensation targeted, in aggregate, around the 50th percentile of our peers to attract, retain and motivate the best employees; and
Provide pay for performance.

 

The following principal elements of compensation are provided under our executive compensation program:

 

Elements of Pay

Base Pay

Baseline for competitive total compensation.

Normally 20% or less of total direct compensation for NEOs.

Short-Term Incentives

Focuses executives on critical operating and strategic goals best measured annually.

Provides downside risk for underperformance and upside reward for success.

Leverages financial measures such as revenue and operating margin, supplemented with select strategic initiatives.

Long-Term Incentives

The majority of NEO target compensation is performance-based and “at risk”.

Motivates and rewards multi-year stockholder value creation.

Facilitates executive stock ownership.

Enables retention.

Delivered through performance shares, stock options and RSUs, with a mandatory one-year post-vest holding period for performance shares and RSUs to encourage long-term orientation.

Performance measures include long-term financial objectives and the relative performance of our stock.

 

Our actual total compensation for each NEO varies based on (i) company performance measured against external metrics that correlate to long-term stockholder value, (ii) performance of the business organizations against specific targets, and (iii) individual performance. These three factors are considered in positioning salaries, determining earned short-term incentives and determining long-term incentive grant values.

 

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Pay Practices

 

Our executive compensation program is supported by a set of strong governance provisions and pay practices.

 

Philosophy / Practice

Result

We structure compensation to create strong alignment with stockholder interests

Majority of pay is “at risk,” delivered via performance-based vehicles such as long-term performance shares and annual cash incentives.

Robust stock ownership guidelines.

Mandatory one-year post-vest holding period on annual awards under the long-term performance plan and executive RSU awards.

We design our programs to avoid excessive risk taking (1)

Strong recoupment and anti-hedging and pledging policies in place.

Annual compensation risk assessment.

Balanced internal and external goals.

We follow best practices in executive compensation design

Limited perquisites.

Double trigger on change in control benefit provisions and no tax gross-up agreements.

No dividends / dividend-equivalents on unearned performance awards and unvested stock awards.

No acceleration of vesting of equity awards, including LTPP shares, upon retirement (awards continue to vest)

Independent Compensation Committee consultant.

 

1)
See Compensation Risk Controls in Additional Information

 

Independent Compensation Committee and Consultant

 

The Compensation Committee is composed solely of independent members of the Board and operates under a Board-approved charter which outlines the Committee’s major duties and responsibilities. This charter is available on our Investor Relations website.

 

Semler Brossy, our independent compensation consultant, does not perform any other work for us, does not trade our stock, has independence policies that are reviewed annually and will proactively notify the Compensation Committee chair of any potential or perceived conflicts of interest. The Compensation Committee found no conflict of interest during fiscal year 2022.

 

For fiscal year 2022, our independent compensation consultant advised the Compensation Committee on several compensation matters, including but not limited to:

Criteria used to identify peer companies for executive compensation and performance metrics;
Evaluation of our total direct compensation levels and mix for the NEOs and four other senior officers;
Mix of long-term incentives, grant types and allocation of equity awards;
Review of the short- and long-term incentive programs for fiscal year 2022;
Review of market trends and governance practices;
Review of various other proposals presented to the Compensation Committee by management; and
Support for stockholder outreach campaign.

 

Process for Determining Compensation

 

To determine total target compensation for the upcoming fiscal year, the Compensation Committee considered:

The performance of each individual executive for the last fiscal year;

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The most recent peer group data from our independent compensation consultant;
Our short-and long-term business and strategic goals; and
Detailed tally sheets for the CEO and each NEO.

 

Our independent compensation consultant presents and analyzes market data for each individual position and provides insight on market practices for the Compensation Committee’s actions, but it does not make any specific compensation recommendations on the individual NEOs. Our consultant does collaborate with the Committee Chair to develop CEO pay recommendations. The Compensation Committee then determines the form and amount of compensation for all executive officers after considering the market data and company, business unit and individual performance.

 

Peer Group for Executive Compensation

 

Each year, the Compensation Committee meets with our independent compensation consultant to review and approve the peer group companies that satisfy our selection criteria. For fiscal year 2022, our approach to determining the peer group for executive compensation was as follows. The compensation peer group consisted of the 31 companies listed below from the S&P 500 Health Care Index (excluding the Health Care Distributors, Health Care Facilities and Managed Health Care subsectors) with revenues between 0.5x and 2.5x times our trailing twelve-month actual revenue, supplemented with two of our most direct competitors (Thermo Fisher and Danaher). The range of annual revenues for peer group members was determined so that our annual revenue would be around the median of the peer group. We used data from this peer group to set each NEO’s compensation for fiscal year 2022, with aggregate compensation targeted at around the peer group median.

 

Alexion Pharma

DENTSPLY Sirona

Perkin Elmer

Viatris

Align Technology

Edwards Lifesciences

Perrigo

Waters

Baxter Intl

Hologic

Quest Diagnostics

Zimmer

Biogen

IDEXX Labs

Regeneron Pharma

Zoetis

Boston Scientific

Illumina

ResMed

 

 

Catalent

Incyte

Steris

 

 

Cerner

Intuitive Surgical

Teleflex

 

 

Danaher

IQVIA

Thermo Fisher