nVent Electric plc
For the period ended May 17, 2024. Filed Apr 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.
May 17, 2024 · Filed Apr 2, 2024
Contents
Comparative Framework
regarding our compensation philosophy and practices and considered the Say-on-Pay vote results in the context of engaging with shareholders and designing our executive compensation programs.
We heard the following themes from our shareholders during our engagement initiatives in 2023:
Our executive compensation program reflects pay-for-performance utilizing industry market practices and is aligned with our strategic objectives
Continued positive feedback on the inclusion of the Environmental, Social, and Governance (ESG) Scorecard in our annual incentive plan
Support for the updated change in control provision included in our equity-based award agreements for any awards granted after December 11, 2022 to provide for double trigger vesting of any awards upon a change in control
Comparative Framework
In setting compensation for our executive officers, including our Named Executive Officers, the Compensation and Human Capital Committee uses competitive compensation data from an annual total compensation study of selected peer companies (our “Comparator Group”) and other relevant survey sources to inform its decisions about overall compensation opportunities and specific compensation elements. Additionally, the Committee uses multiple reference points when establishing targeted compensation levels. The Committee applies judgment and discretion in establishing targeted pay levels, taking into account not only competitive market data, but also factors such as company, business segment and individual performance, scope of responsibility, critical needs and skill sets, experience, leadership potential and succession planning. The Committee selects companies for inclusion in the Comparator Group based on several important criteria:
publicly-traded on a major exchange;
similar in business scope and/or operations to our segments and global in nature;
within a reasonable revenue range (generally 0.5x to 2x) compared to our revenue;
where we compete for talent; and
engaged in the same or a similar industry to ours, based on Global Industry Classification Standard (“GICS”) code: electrical components and equipment, electronic components and industrial machinery.
The Committee worked with WTW to develop our Comparator Group for use in setting target compensation for 2023 for our executive officers, including our Named Executive Officers. Our Comparator Group for 2023 included the following 20 peer companies, which had revenues ranging from approximately $1.5 billion to $6.2 billion, with median revenues of approximately $3.4 billion:
| | Acuity Brands, Inc. | | | Altra Industrial Motion Corp. | | | AMETEK, Inc | |
|---|---|---|---|---|---|---|---|---|
| | Atkore Inc. | | | Belden Inc. | | | EnerSys | |
| | ESAB Corporation | | | Generac Holdings Inc. | | | Graco Inc. | |
| | Hubbell Incorporated | | | IDEX Corporation | | | ITT Inc. | |
| | Kennametal Inc. | | | Lincoln Electric Holdings, Inc. | | | Littelfuse, Inc. | |
| | Regal Rexnord Corporation | | | Sensata Technologies Holding plc | | | SPX Corporation | |
| | The Timken Company | | | Woodward, Inc. | | | | |
The Comparator Group used for 2023 reflected the replacement of Colfax Corporation (n/k/a Enovis Corporation) with ESAB Corporation, a company that became a stand-alone publicly traded entity through a separation from Colfax Corporation in 2022. The Committee did not make changes to the Comparator Group following its annual review in 2023 in preparation for setting 2024 compensation.
2024 Proxy Statement 39
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