MKS INSTRUMENTS INC
For the period ended May 7, 2024. Filed Mar 27, 2024.
View on SEC.govAbout this filing
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 7, 2024 · Filed Mar 27, 2024
Contents
Cover page
Show cover page
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 14A
(Rule
14A-101)
INFORMATION REQUIRED IN
PROXY STATEMENT
SCHEDULE 14A
INFORMATION
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 |
MKS Instruments, Inc.
(Name of Registrant as Specified in its Charter)
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 |
Dear Shareholder:
You are cordially invited to attend the 2024 Annual Meeting of Shareholders of MKS Instruments, Inc. to be held on Tuesday, May 7, 2024 at 10:00 a.m., Eastern Time, at our headquarters at 2 Tech Drive, Suite 201, Andover, Massachusetts 01810.
The attached notice of Annual Meeting and proxy statement describe the business to be transacted at the Annual Meeting and provide additional information about us that you should know when voting your shares. The principal business at the Annual Meeting will be (i) the election of three Class I Directors, each for a three-year term, (ii) the approval, on an advisory basis, of executive compensation, (iii) the ratification of the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the year ending December 31, 2024, and (iv) the consideration of one shareholder proposal regarding simple majority voting, if properly presented at the meeting.
Whether or not you plan to attend the Annual Meeting, please carefully review the attached proxy materials and take the time to cast your vote.
On behalf of MKS, I would like to express our appreciation for your continued interest in our Company.
Sincerely,
JOHN T.C. LEE President and Chief Executive Officer
NOTICE OF 2024 ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON TUESDAY, MAY 7, 2024 at 10:00 A.M. EASTERN TIME
To our Shareholders:
The 2024 Annual Meeting of Shareholders of MKS INSTRUMENTS, INC., a Massachusetts corporation, will be held on Tuesday, May 7, 2024 at 10:00 a.m., Eastern Time, at our headquarters at 2 Tech Drive, Suite 201, Andover, Massachusetts 01810, for the following purposes:
| 1. | The election of three Class I Directors, each for a three-year term; |
| 2. | The approval, on an advisory basis, of executive compensation; |
| 3. | The ratification of the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the year ending December 31, 2024; and |
| 4. | The consideration of one shareholder proposal regarding simple majority voting, if properly presented at the meeting. |
The shareholders will also act on any other business as may properly come before the meeting.
We provide access to our proxy materials over the Internet under the U.S. Securities and Exchange Commission’s “notice and access” rules. As a result, we mail to our shareholders a Notice of Internet Availability of Proxy Materials, which we refer to as the Notice. We are mailing the Notice on or about March 27, 2024, and it contains instructions on how to access the proxy statement and our Annual Report for the fiscal year ended December 31, 2023, which we refer to as the 2023 Annual Report, over the Internet. The Notice also contains instructions on how our shareholders can receive a paper copy of our proxy materials, including this proxy statement, our 2023 Annual Report, and a form of proxy card or voting instruction card. All shareholders who do not receive the Notice, including shareholders who have previously requested to receive paper copies of proxy materials, will receive a paper copy of the proxy materials by mail unless they have previously requested delivery of proxy materials electronically.
The Board of Directors has fixed the close of business on February 28, 2024 as the record date for the determination of shareholders entitled to notice of, and to vote at, the Annual Meeting and any adjournment or postponement thereof. Your vote is important no matter how many shares you own. Whether or not you expect to attend the meeting, we urge you to vote your shares.
If you are a shareholder of record, you may vote by using the Internet or calling the toll-free telephone number as described in the instructions included in your Notice, or, if you received a paper copy of the proxy materials, by completing, signing, dating, and returning your proxy card or voting instruction card. If you are a beneficial shareholder (meaning the shares you own are held in “street name” by a bank, broker, or other nominee), you may vote by following the instructions your broker, bank, or other nominee provides to you. Your prompt response is necessary to ensure that your shares are represented at the meeting. You can change your vote and revoke your proxy any time before the polls close at the meeting by following the procedures described in the accompanying proxy statement.
By Order of the Board of Directors,
KATHLEEN F. BURKE Secretary
Andover, Massachusetts
TABLE OF CONTENTS
| PROXY STATEMENT | 1 |
|---|---|
| VOTING OF SECURITIES AND VOTES REQUIRED | 1 |
| VOTING AND MEETING INFORMATION | 2 |
| Voting Your Shares | 2 |
| Attending the 2024 Annual Meeting | 3 |
| Proxy Materials | 3 |
| Shareholder List | 3 |
| PROPOSAL ONE – ELECTION OF DIRECTORS | 4 |
| DIRECTORS | 4 |
| Director Skills, Experience, and Background | 12 |
| Board Skills Matrix | 15 |
| Board Diversity Matrix | 15 |
| Demographic Ratio Graphs | 16 |
| PROPOSAL TWO – ADVISORY VOTE ON EXECUTIVE COMPENSATION | 17 |
| PROPOSAL THREE – RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 18 |
| PROPOSAL FOUR – SHAREHOLDER PROPOSAL REGARDING SIMPLE MAJORITY VOTING | 19 |
| MKS Board of Directors’ Statement in Opposition to Shareholder Proposal | 19 |
| CORPORATE GOVERNANCE | 21 |
| Board Independence | 21 |
| Board Leadership Structure | 21 |
| Communications from Shareholders | 21 |
| Code of Business Conduct and Ethics | 22 |
| Board’s Role in Risk Oversight | 22 |
| Transactions with Related Persons | 22 |
| Board of Director Meetings and Committees of the Board of Directors | 23 |
| Director Candidates | 26 |
| ENVIRONMENTAL, SOCIAL, AND GOVERNANCE | 27 |
| Governance | 27 |
| Human Capital Management | 27 |
| Health & Safety | 28 |
| Environmental Management | 28 |
| DIRECTOR COMPENSATION | 30 |
| Cash Compensation | 30 |
| Equity Compensation | 30 |
| Director Compensation Table for 2023 | 30 |
| AUDIT AND FINANCIAL ACCOUNTING OVERSIGHT | 31 |
| Audit Committee Report | 31 |
| Principal Accountant Fees and Services | 32 |
| SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 34 |
| EXECUTIVE OFFICERS | 36 |
| EXECUTIVE COMPENSATION | 39 |
| Compensation Discussion and Analysis | 39 |
| COMPENSATION COMMITTEE REPORT | 51 |
| EXECUTIVE COMPENSATION TABLES | 52 |
| Summary Compensation Table for 2023 | 52 |
| CEO Pay Ratio | 54 |
i
| Pay Versus Performance | 55 |
|---|---|
| Grants of Plan-Based Awards in Fiscal Year 2023 Table | 59 |
| Outstanding Equity Awards at 2023 Fiscal Year-End Table | 60 |
| Option Exercises and Stock Vested in Fiscal Year 2023 Table | 60 |
| Potential Payments Upon Termination or Change-in-Control | 61 |
| EQUITY COMPENSATION PLAN INFORMATION | 68 |
| OTHER MATTERS | 69 |
| Expenses and Solicitation | 69 |
| Deadline for Submission of Shareholder Proposals for the 2025 Annual Meeting | 69 |
| Householding of Annual Meeting Materials | 69 |
| No Incorporation by Reference | 70 |
| APPENDIX A | A-1 |
| Reconciliation of 2023 Loss from Operations to 2023 Non-GAAP Operating Income | A-1 |
| Reconciliation of 2023 Net Loss to 2023 Adjusted EBITDA | A-1 |
ii
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.