INSIGHT ENTERPRISES INC
For the period ended Apr 3, 2025. Filed Apr 3, 2025.
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Apr 3, 2025 · Filed Apr 3, 2025
Contents
PROXY SUMMARY
This summary highlights information contained elsewhere. This summary does not contain all of the information that you should consider, and you should carefully read the entire proxy statement and our Annual Report for the year ended December 31, 2024, before voting at the Annual Meeting. Measures used in this proxy statement that are not based on U.S. generally accepted accounting principles (“GAAP”) are defined and reconciled to the most directly comparable GAAP measure in Appendix A.
Business Overview
Today, every business is a technology business. We help our clients accelerate their digital journey to modernize their businesses and maximize the value of technology. We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 36 years of broad Information Technology (“IT”) expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways.
Building upon the strong foundation of our traditional technology business, we bring innovative and scalable solutions — a combination of services and product — that accelerate transformation and produce meaningful results for our clients. Our strategy is focused on putting clients first, deliv ering differentiation, championing our culture and driving profitable growth.
We are organized in the following three operating segments, which are primarily defined by their related geographies:
| Operating Segment | Geography | Percent of 2024Consolidated Net Sales |
|---|---|---|
| North America | United States and Canada | 81% |
| EMEA | Europe, Middle East and Africa | 16% |
| APAC | Asia-Pacific | 3% |
2024 Business Highlights
In 2024, the Company achieved record gross margin driven by cloud and services as well as our pricing and profitability initiatives. We also generated record cash flows from operating activities for the year. The Company made significant progress in key growth areas, with cloud gross profit increasing due to higher demand for SaaS and infrastructure-as-a-service along with contributions from acquisitions. The Company continues to expand its expertise in GCP, ServiceNow, and AWS, while supplementing its strong capabilities in Azure. We believe our focus positions us well to execute on our business goals and serve our clients’ needs as market conditions evolve.
For the full year 2024, we delivered the following consolidated financial results:
Net sales declined 5% to $8.7 billion
Gross profit grew 6% to $1.8 billion
Gross margin expanded approximately 210 basis points to 20.3%
Earnings from operations (“EFO”) declined 7% to $389 million, and non-GAAP Adjusted* EFO grew 2% to $502 million
Diluted earnings per share (“EPS”) declined 13% to $6.55, and non-GAAP Adjusted* diluted EPS was flat at $9.68
Non-GAAP Adjusted* return on invested capital (“ROIC”) from EFO was 11.82% and from Adjusted* EFO was 15.28%(1)
(1)Calculated using a 26.0% tax rate.
- See Appendix A for a reconciliation of each non-GAAP Adjusted financial measure to the most directly comparable GAAP measure and a discussion of why we believe these non-GAAP measures are useful.
The following chart shows how a $100 investment in the Company’s common stock on December 31, 2019, would have grown to $216 on December 31, 2024. The chart also shows Insight’s performance versus the NASDAQ US Benchmark TR Index (Market Index) ($100 investment would have grown to $193) and the NASDAQ US Benchmark Computer Hardware TR Index (Industry Index) ($100 investment would have grown to $342) over the same period, with dividends reinvested.
For further details about our performance in 2024, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Our Board of Directors
Independent Board. Our Board of Directors (the “Board of Directors” or the “Board”) is comprised entirely of independent directors, other than Joyce A. Mullen, who also serves as our President and Chief Executive Officer.
Independent Chair of the Board and Presiding Director. Timothy A. Crown serves as the independent Chair of our Board and Anthony A. Ibargüen serves as the Presiding Director of our Board, whose primary responsibility is to fill in for the Chair if Mr. Crown is unable to serve.
Independent Board Committees. All members of our Board’s Audit, Compensation and Nominating and Governance Committees are independent directors.
| Board Committee Membership | |||||||
|---|---|---|---|---|---|---|---|
| Name | Age | DirectorSince | PrimaryOccupation | Independent | Audit | Compensation | Nominating &Governance |
| Joyce A. Mullen | 63 | 2022 | President andChief ExecutiveOfficer, InsightEnterprises, Inc. | ||||
| Timothy A. Crown | 61 | 1994 | Investor /Entrepreneur | ✓ | |||
| Richard E. Allen | 68 | 2012 | Investor | ✓ | × | ||
| Bruce W. Armstrong | 63 | 2016 | Operating Partner,Khosla Ventures | ✓ | × | ||
| Alexander L. Baum(1) | 39 | 2022 | Partner, ValueAct Capital | ✓ | × | × | |
| Linda M. Breard | 55 | 2018 | Investor | ✓ | × | ||
| Catherine Courage | 50 | 2016 | Vice President,of Experience for Consumer Products,Google, Inc. | ✓ | × | × | |
| Janet Foutty(2) | 58 | 2024 | Chief Executive Officer (retired), Deloitte Consulting LLP | ✓ | × | × | |
| Anthony A. Ibargüen | 66 | 2008 | Executive Chair of Culligan Quench and Culligan Latin America | ✓ | × | × | |
| Kathleen S. Pushor(1) | 67 | 2005 | Independent Consultant | ✓ | × | × | |
| Thomas Reichert(2) | 58 | 2024 | Chief Executive Officer, Environmental Resources Management, Inc. | ✓ | × | × | |
| Girish Rishi | 55 | 2017 | Chief Executive Officer, Cognite LLC | ✓ | × | × | |
| Committee Chair | |
| (1) | Alexander L. Baum and Kathleen S. Pushor are not standing for re-election at the 2025 Annual Meeting. |
| (2) | Janet Foutty and Thomas Reichert were appointed to the Board and their respective committee roles effective August 30, 2024. |
Executive Compensation Highlights
Chief Executive Officer Pay for Performance
Our executive compensation program is focused on driving profitability growth and stockholder value creation. The Compensation Committee seeks to foster these objectives through a compensation system that focuses on variable, performance-based incentives that create a balanced focus on our short-term and long-term strategic and financial goals. As shown in the chart below, in 2024, approximately 89% of the target total direct compensation of our President and Chief Executive Officer (CEO), Joyce A. Mullen, was variable and/or “at-risk” and earned only if performance goals are met.
Our Executive Compensation Practices
Our executive compensation practices include the following, each of which the Compensation Committee believes reinforces our executive compensation objectives:
| Our Executive Compensation Practices | |
| ✓ | Emphasis on at-risk compensation, with significant percentage delivered in the form of variable compensation |
|---|---|
| ✓ | Long-term performance objectives aligned with the creation of stockholder value |
| ✓ | Compensation Committee consists of independent directors only |
| ✓ | Annual review of our compensation-related risk profile |
| ✓ | Market comparison of executive compensation against relevant peer group information |
| ✓ | Use of an independent compensation consultant reporting directly to the Compensation Committee and providing services only at the committee’s discretion |
| ✓ | Robust stock ownership guidelines |
| ✓ | Clawback policy |
| ✓ | We do not provide excessive executive perquisites |
| ✓ | We do not provide excessive severance benefits |
| ✓ | We do not offer tax gross-ups for changes in control |
| ✓ | We prohibit repricing of underwater stock options under our long-term incentive plan without stockholder approval |
| ✓ | We prohibit hedging, short sales or pledging of our securities |
Extensive information regarding our executive compensation programs in place for 2024 can be found under the heading “Compensation Discussion and Analysis.”
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.