AGILENT TECHNOLOGIES INC
For the period ended Mar 14, 2024. Filed Feb 2, 2024.
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What shareholders are asked to vote on at a company's meeting. It is where to find what directors and top executives are paid, and who owns the most shares.
Mar 14, 2024 · Filed Feb 2, 2024
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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
| Filed by the Registrant ☒ | |
|---|---|
| Filed by a Party other than the Registrant ☐ | |
| 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 |
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 paid previously with preliminary materials. |
| ☐ | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
5301 Stevens Creek Boulevard
Santa Clara, California 95051 (800) 227-9770
Notice of Annual Meeting of Stockholders
| TIME | : | 8:00 a.m., Pacific Time, on Thursday, March 14, 2024 |
|---|---|---|
| PLACE | : | 5301 Stevens Creek Blvd. |
| Santa Clara, California 95051 | ||
| 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: |
| •Mala Anand•Koh Boon Hwee•Michael R. McMullen and•Daniel K. Podolsky, M.D. | ||
| 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 a stockholder proposal regarding simple majority vote. | ||
| 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 January 23, 2024. |
| 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 attend the annual meeting, you will need to have pre-registered by 5:00 p.m., Pacific Time, on March 1, 2024. Specific instructions on pre-registration can be found in the General Information section of this proxy statement. To be admitted to the annual meeting, you must present proof of ownership of our stock as of the record date. This can be a brokerage statement or letter from a bank or broker indicating ownership on January 23, 2024, the Notice of Internet Availability of Proxy Materials, a proxy card, or legal proxy or voting instruction card provided by your broker, bank or nominee. You may also be asked to present a form of photo identification such as a driver’s license or passport. The annual meeting will begin promptly at 8:00 a.m.,Pacific Time. |
| WEBCAST: | If you are unable to attend the annual meeting in person, you may listen through the Internet or by telephone. To listen to the live webcast, log on at www.investor.agilent.com and select the link for the webcast. To listen by telephone, please call (888) 330-2388 (international callers should dial (240) 789-2707). The meeting identification number is 87316. The webcast will begin at 8:00 a.m., Pacific Time and will remain on the company’s website for one year. You cannot record your vote or ask questions on this website or at this phone number. | |
By Order of the Board of Directors
P. Diana Chiu
Vice President, Interim General Counsel and Secretary
This proxy statement and the accompanying proxy card are being first sent or given to the stockholders on or about February 2, 2024.
SUMMARY INFORMATION
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This proxy statement contains forward-looking statements as defined in the Securities Exchange Act of 1934, as amended (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, 2023. 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 2024 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. | 7 |
| (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. | 58 |
| (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. | 59 |
| (4) | Stockholder proposal regarding simple majority vote | NO RECOMMENDATION | The Board makes no recommendation on this proposal. | 62 |
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 · DIRECTORSINCE · OCCUPATION · COMMITTEE MEMBERSHIPS | |||||
|---|---|---|---|---|---|
| Mala Anand | 56 | 2019 | Corporate Vice President, Customer Experience of | | Compensation |
| Microsoft · · Nominating/Corporate Governance | |||||
| Koh Boon Hwee | 73 | 2003 | Non-Executive Chairman of | | Executive |
| Singapore Exchange Ltd. · · Nominating/Corporate Governance | |||||
| Michael R. McMullen | 62 | 2015 | President & Chief Executive Officer and Director of | ||
| Agilent Technologies, Inc. | |||||
| Daniel K. Podolsky, M.D. | 70 | 2015 | President of the | | Audit and Finance |
| University of Texas Southwestern Medical Center · · Nominating/Corporate Governance | |||||
Corporate Governance
The Board is committed to sound and effective governance practices that it believes 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 16.
| 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 |
| Three 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 ten years | Robust 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.
SUMMARY INFORMATION
Oversight of Cybersecurity Risk
Our security program is based on industry standards including ISO 27002 Code of Practice, NIST and the COBIT 5 Framework. Our policies, standards and operating procedures provide a comprehensive approach to maintain the confidentiality, integrity, and availability of the data and systems in our environment in order to meet our business goals and customer needs.
Security is a company-wide approach, and we continuously invest in our people, processes and tools to strengthen our security posture to protect both Agilent’s and our customers’ data. This includes educating our workforce on an on-going basis of cybersecurity threats and their role in our overall security approach. All users, including our employees and third party contractors, are required to complete annual training and to confirm their understanding of and compliance with our “Acceptable Use of Information Systems Policy” to retain access to our systems.
To support our company-wide approach, we have a dedicated IT Information Security and Risk Management (ISRM) department that is accountable for the following key areas: policy, standards and operating procedures, IT compliance, IT risk management, threat and vulnerability management, security awareness and security operations, which includes comprehensive security incident management, reporting and response protocols that are tested and maintained on a regular basis. We also engage external consultants to complete independent program and capability assessments, including scanning of our systems for vulnerabilities. The head of our ISRM organization, together with our Chief Information Officer, provide periodic updates to the Audit and Finance Committee regarding our cybersecurity program, including information about cyber risk management governance and status updates on various projects intended to enhance the overall cybersecurity posture of the company.
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, we have 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 2021, 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 aim to 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 plan to 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. As part of our climate action plan, we have established near and long-term emission reduction targets to limit planetary warming to 1.5°C above pre-industrial levels which have been approved by the Science Based Targets initiative ("SBTi"). To provide investors with meaningful sustainability information, we also announced that we are adopting the Task Force on Climate-related Financial Disclosures (TCFD) recommendations for disclosing climate-related risks, alongside our reporting in accordance with SASB and GRI.
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, 2023, approximately 38% of our full-time employees were female. Approximately 42% of our board is comprised of directors representing traditionally underrepresented groups as of December 31, 2023. We also have launched a number of company-wide initiatives including 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.
SUMMARY INFORMATION
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 Nominating/Corporate Governance Committee charter is 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 investor relations web page at www.investor.agilent.com. 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.
TABLE OF CONTENTS
2024 ANNUAL MEETING OF STOCKHOLDERS
NOTICE OF ANNUAL MEETING AND PROXY STATEMENT
TABLE OF CONTENTS
| Page | |
|---|---|
| PROPOSAL 1 – ELECTION OF DIRECTORS | 7 |
| Director Nominees for Election to New Three-Year Terms That Will Expire in 2027 | 8 |
| Directors Whose Terms Expire in 2025 | 10 |
| Directors Whose Terms Expire in 2026 | 12 |
| COMPENSATION OF NON-EMPLOYEE DIRECTORS | 14 |
| Summary of Non-Employee Director Annual Compensation for the 2023 Plan Year | 14 |
| Non-Employee Director Compensation for Fiscal Year 2023 | 15 |
| Non-Employee Director Reimbursement | 15 |
| Non-Employee Director Stock Ownership Guidelines | 15 |
| CORPORATE GOVERNANCE | 16 |
| Board Leadership Structure | 16 |
| Board’s Role in Risk Oversight | 17 |
| Majority Voting for Directors | 17 |
| Board Communications | 17 |
| Director Stockholder Meeting Attendance | 18 |
| Director Independence | 18 |
| Compensation Committee Member Independence | 18 |
| Director Nomination Criteria: Qualifications and Experience | 18 |
| Committees of the Board of Directors | 20 |
| Related Person Transactions Policy and Procedures | 21 |
| Transactions with Related Persons | 22 |
| COMPENSATION DISCUSSION AND ANALYSIS | 24 |
| Executive Summary | 25 |
| Additional Information | 40 |
| COMPENSATION COMMITTEE REPORT | 43 |
| EXECUTIVE COMPENSATION | 44 |
| Summary Compensation Table | 44 |
| Grants of Plan-Based Awards | 46 |
| Outstanding Equity Awards at Fiscal Year-End | 47 |
| Option Exercises and Stock Vested | 48 |
| Pension Benefits | 49 |
| Non-Qualified Deferred Compensation | 50 |
| Termination and Change of Control Arrangements | 52 |
| CEO Pay Ratio | 53 |
| PROPOSAL 2 – ADVISORY VOTE TO APPROVE THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS | 58 |
| PROPOSAL 3 – RATIFICATION OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 59 |
| AUDIT MATTERS | 60 |
| Fees Paid to PricewaterhouseCoopers LLP | 60 |
| Policy on Pre-approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm | 60 |
| AUDIT AND FINANCE COMMITTEE REPORT | 61 |
| PROPOSAL 4 – SIMPLE MAJORITY VOTE | 62 |
| BENEFICIAL OWNERSHIP | 64 |
| Stock Ownership of Certain Beneficial Owners | 64 |
| Stock Ownership of Directors and Officers | 65 |
| Section 16(a) Beneficial Ownership Reporting Compliance | 65 |
| GENERAL INFORMATION | 66 |
| APPENDIX A | A-1 |
PROPOSAL 1 - ELECTION OF DIRECTORS
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.