Edwards Lifesciences Corp
For the period ended Dec 31, 2023. Filed Mar 26, 2024.
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Dec 31, 2023 · Filed Mar 26, 2024
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
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 under §240.14a-12
Edwards Lifesciences Corporation
(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 all boxes that apply):
☒ No fee required.
☐ Fee paid previously with preliminary materials.
☐ Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.
| Edwards Lifesciences Corporation One Edwards WayIrvine, California 92614Phone: 949.250.2500www.edwards.com | |
| March 26, 2024 Dear Fellow Stockholders:On behalf of the Edwards Board of Directors, it is my pleasure to invite you to attend our 2024 Annual Meeting of Stockholders. We look forward to updating you on the exciting progress Edwards continues to make in transforming care for patients globally. Among our updates: after 24 years in this role at Edwards, I will be retiring as Chairman at our Annual Meeting. I am immensely proud of the contributions Edwards has made toward helping millions of patients around the world during my tenure. While our company has innovated and grown, our formula for success has remained the same: strive for breakthrough innovation, be a leader in the work we do, and focus intensely on our patients.Now is the right time for my transition. I have witnessed the strength of our company’s leadership as we have successfully completed our CEO succession. Bernard Zovighian is leading Edwards with great commitment and skill. Our company has a wonderful patient-driven culture, is financially resilient, and has a strong and committed Board of Directors. Edwards has impressive global talent, and has a pipeline of game-changing innovations. In short, I’m convinced the best days are ahead. We are now embarking on another planful transition of our Board, reflecting the strength of our succession planning process. We consistently assesses our future needs and strive to evolve our board for success in the years ahead. We are proud to support Nicholas Valeriani as our new Independent Chairman. Nick has more than 40 years of medical technology industry experience in a variety of leadership roles at a large and complex global company as well as experience directing corporate strategy. Nick has provided critical perspectives on our patient-focused innovation strategy and assessment of future business opportunities. I know Nick looks forward to getting to know our shareholders as Chairman. I also want to take this opportunity to thank Martha Marsh for her valuable contributions over her nine-year tenure. She will be retiring as of this Annual Meeting. Martha has provided strong independent leadership for our stockholders and has been a great source of advice and counsel to me, our Board, and our leadership team.Edwards remains committed to regular evaluation of our Board with a focus on having the diverse talent to be future ready. As such, we are pleased to nominate Leslie Davis, to the Board at this year’s Annual Meeting. Leslie is the President and CEO of the University of Pittsburgh Medical Center and would bring to the Board more than 30 years of healthcare experience, with a particular emphasis on delivering high-quality care to a diverse population of patients, while strategically adding new businesses and services.Thank you for your continued support of Edwards. On behalf of the Board, the executive leadership team and Edwards’ global employees, we are excited that Edwards is well positioned to lead in a new era of structural heart innovation. I strongly believe Edwards will continue to deliver on breakthrough technologies and science-based evidence to serve patients in need, and deliver sustainable growth. We look forward to your attendance at this year’s Annual Meeting.Sincerely, Michael A. MussallemChairman of the Board |
NOTICE OF 2024 ANNUAL MEETING OF STOCKHOLDERS
| Date and Time | Location | Record Date |
|---|---|---|
| May 7, 2024 | Edwards Lifesciences Corporation | March 8, 2024 |
| 10:00 a.m. PT | One Edwards Way, Irvine, CA 92614 |
Matters to be voted on at the 2024 Annual Meeting of Stockholders (the “Annual Meeting”)
Election of eight director nominees named in the attached Proxy Statement to serve until our next annual meeting of stockholders and until their respective successors are duly elected and qualified
Approval, on an advisory basis, of the named executive officer compensation disclosed in the attached Proxy Statement
Ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2024
Approval of the amended and restated Long-Term Stock Incentive Compensation Program
Other business as may properly come before the Annual Meeting, and any postponement or adjournment of the Annual Meeting
The Proxy Statement accompanying this notice describes each of the items of business in more detail.
Record Date: If you were a holder of record of the common stock of Edwards Lifesciences Corporation at the close of business on March 8, 2024, you are entitled to notice of, and to vote at, the Annual Meeting.
Your vote is very important. Please submit your proxy or voting instructions as soon as possible to ensure that your shares will be represented at the Annual Meeting, whether or not you expect to attend the Annual Meeting.
| How to Vote Your Shares | |
|---|---|
| By InternetGo to www.proxypush.com/EW and follow the instructions | By TelephoneCall 1-866-892-1604 and follow the instructions |
| By MailComplete, sign, date, and return your proxy card or voting instruction form in the envelope provided | In PersonAttend our Annual Meeting and vote by ballot |
By Order of the Board of Directors,
Linda J. Park
Senior Vice President, Associate General Counsel, and Corporate Secretary
March 26, 2024
Important notice regarding the availability of proxy materials for our
2024 Annual Meeting of Stockholders to be held on May 7, 2024
Edwards Lifesciences Corporation ◾ One Edwards Way, Irvine, CA 92614 ◾ www.edwards.com
TABLE OF CONTENTS
| Page | |
|---|---|
| PROXY SUMMARY | i |
| GENERAL MEETING AND VOTING INFORMATION | 1 |
| BOARD OF DIRECTORS MATTERS | 4 |
| PROPOSAL 1 – ELECTION OF DIRECTORS | 4 |
| Corporate Governance Policies and Practices | 11 |
| Active Stockholder Engagement Program | 11 |
| Director Independence | 11 |
| Corporate Governance Guidelines | 12 |
| Board Leadership Structure | 12 |
| Risk Oversight | 12 |
| Meetings of our Board | 14 |
| Board Composition | 14 |
| Committees of our Board | 14 |
| Succession Planning | 16 |
| Communications with our Board of Directors | 16 |
| Corporate Impact | 17 |
| Director Compensation | 18 |
| Director Compensation Table – 2023 | 18 |
| Retainers and Fees | 18 |
| Nonemployee Directors Stock Incentive Program | 18 |
| Deferral Election Program | 19 |
| Directors’ Stock Ownership Guidelines and Holding Requirement | 19 |
| Expense Reimbursement Policy | 19 |
| Outstanding Nonemployee Director Equity Awards | 20 |
| STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 21 |
| EXECUTIVE COMPENSATION AND OTHER INFORMATION | 22 |
| Executive Officers | 22 |
| Compensation Discussion and Analysis | 24 |
| Executive Summary | 24 |
| Compensation Philosophy and Objectives for NEOs | 27 |
| Compensation Process | 28 |
| Independent Compensation Consultant | 28 |
| Setting Compensation Levels and Use of Competitive Data | 29 |
| Elements of Compensation | 30 |
| Stock Ownership Guidelines and Holding Requirement | 37 |
| Prohibition on Pledging and Hedging | 37 |
| Market Timing of Equity Awards | 37 |
| Benefits and Perquisites | 37 |
| Deferred Compensation | 38 |
| Employment and Post-Termination Agreements | 38 |
| Tax Implications – Policy Regarding Section 162(m) | 38 |
| Compensation and Governance Committee Report | 39 |
| Executive Compensation | 40 |
| Summary Compensation Table – Fiscal Year 2021-2023 | 40 |
| Grants of Plan-Based Awards in Fiscal Year 2023 | 42 |
| Non-Equity Incentive Plan Awards | 43 |
|---|---|
| Equity Incentive Plan Awards | 43 |
| Outstanding Equity Awards at 2023 Fiscal Year-End | 46 |
| Option Exercises and Stock Vested in Fiscal Year 2023 | 48 |
| Nonqualified Deferred Compensation Plans | 48 |
| Potential Payments Upon Termination or Change in Control | 49 |
| CEO Pay Ratio | 51 |
| Pay Versus Performance | 52 |
| PROPOSAL 2 – ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION | 56 |
| EQUITY COMPENSATION PLAN INFORMATION | 57 |
| AUDIT MATTERS | 58 |
| PROPOSAL 3 – RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 58 |
| Audit Committee Report | 60 |
| OTHER MATTERS AND BUSINESS | 61 |
| PROPOSAL 4 – APPROVAL OF THE AMENDED AND RESTATED LONG-TERM STOCK INCENTIVE COMPENSATION PROGRAM | 61 |
| Additional Information | 69 |
| Section 16(a) Beneficial Ownership Reporting Compliance | 69 |
| Related Persons Transactions | 69 |
| Indemnification of Directors and Officers | 69 |
| Deadline for Receipt of Stockholder Proposals and Director Nominations for the 2025 Annual Meeting | 69 |
| Delivery of the Proxy Materials | 70 |
| APPENDIX A – Non-GAAP Financial Information | A-1 |
This Proxy Statement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements contained in this Proxy Statement to be covered by the safe harbor provisions of such Acts. Some statements other than statements of historical fact in this Proxy Statement or referred to or incorporated by reference into this Proxy Statement are “forward-looking statements” for purposes of these sections. These statements can sometimes be identified by the use of the forward-looking words, such as “may,” “believe,” “will,” “expect,” “project,” “estimate,” “should,” “anticipate,” “plan,” “goal,” “continue,” “seek,” “pro forma,” “forecast,” “intend,” “guidance,” “optimistic,” “aspire,” “confident,” other forms of these words, or similar words or expressions or the negatives thereof. Statements of past performance, efforts or results about which inferences or assumptions may be made can also be forward-looking statements and are not indicative of future performance or results; these statements can be identified by the use of words such as “preliminary,” “initial,” "potential," "possible," “diligence,” “industry-leading,” “compliant,” “indications,” or “early feedback” or other forms of these words or similar words or expressions or the negatives thereof. These forward-looking statements are subject to substantial risks and uncertainties that could cause our results or future business, financial condition, results of operations, or performance to differ materially from our historical results or experiences or those expressed or implied in any forward-looking statements contained in this Proxy Statement. These risks and uncertainties include, but are not limited to, the spin-off of our critical care product group; our ability to develop new products and avoid manufacturing and quality issues; clinical trial or commercial results or new product approvals and therapy adoption; the impact of public health crises; the impact of domestic and global economic conditions; competition in the markets in which we operate; our reliance on vendors, suppliers and other third parties; damage, failure or interruption of our information technology systems; consolidation in the healthcare industry; our ability to protect our intellectual property; our compliance with applicable regulations; our exposure to product liability claims; use of our products in unapproved circumstances; changes to reimbursement for our products; the impact of currency exchange rates; unanticipated actions by the U.S. Food and Drug Administration and other regulatory agencies; changes to tax laws; unexpected impacts or expenses of litigation or internal or government investigations and other risks listed in Edwards’ Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and our subsequent reports filed with the U.S. Securities and Exchange Commission, to which your attention is directed. These forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections.
Edwards, Edwards Lifesciences, the stylized E logo, ALLIANCE, CLASP, CLASP II, ClearSight, ENCIRCLE, EVOQUE, HemoSphere, MITRIS, MITRIS RESILIA, PASCAL, PASCAL Precision, PROGRESS, RESILIA, SAPIEN, SAPIEN 3, SAPIEN 3 Ultra, SAPIEN M3, SAPIEN X4, TRISCEND, and TRISCEND II are trademarks of Edwards Lifesciences Corporation. All other trademarks are the property of their respective owners.
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