UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 14A
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. )
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Filed by the Registrant |
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Filed by a Party other than the Registrant |
| Check the appropriate box: |
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Preliminary Proxy Statement |
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Confidential, for Use of the Commission Only (as permitted by Rule 14A-6(E)(2)) |
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Definitive Proxy Statement |
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Definitive Additional Materials |
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Soliciting Material under §240.14a-12 |
Middleby Corp.
(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): |
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No fee required. |
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Fee paid previously with preliminary materials. |
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Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11. |
This is Middleby
Middleby is a world leader in delivering
advanced innovation and solutions for commercial, residential, and industrial foodservice. The company is proud to be built on
trusted, long-standing relationships with industry partners, employees and shareholders.
We are committed to delivering new, innovative
solutions to the markets we serve, which are quickly evolving in all three of our business segments. These innovations deliver
speed, versatility, automation, safety, energy savings and other sustainable and green operating benefits to our customers.
While we are dedicated to our global customer
base, Middleby also prioritizes connecting with the communities where we live and work through philanthropic efforts and sustainable
initiatives. We endeavor to set the standard for tomorrow, with a goal of serving excellence in everything we do today.
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Commercial Foodservice
Middleby is the worldwide leader in innovative solutions for commercial foodservice. We develop and manufacture advanced cooking,
warming, beverage and cooling equipment, along with innovative IoT and robotics solutions to enhance operations for commercial
foodservice operators. Middleby brands can be found in a wide array of foodservice businesses, including quick service, fast
casual, pizza, ghost kitchen, casual and fine dining establishments, grocery and convenience stores and institutional commissaries
and stadiums.
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Residential
Middleby is a global leader in premium kitchen appliances and outdoor cooking solutions for consumer home use. Middleby Residential
brands are highly respected and in use worldwide, and our residential kitchen offerings bring the latest innovation and design
to both classic and contemporary kitchens. The Middleby Outdoor cooking brands address current consumer trends and deliver
advanced cooking technologies to the outdoor grilling enthusiast.
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Food Processing
Middleby develops innovative, industry-leading solutions for industrial protein processing, high-volume baking, packaging
and other specialty areas where automated and large scale food production is required. With a broad offering of highly respected
brands and advanced technologies, Middleby has the ability to fully integrate a wide array of solutions to deliver efficiency,
flexibility, quality and consistency.
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May 14,
2025
10:00
a.m. CDT
Virtual
Meeting www.virtualshareholdermeeting.com/MIDD2025
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NOTICE
of Annual
Meeting of Stockholders
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The Annual Meeting of Stockholders
of The Middleby Corporation will be held for the following purposes:
AGENDA
1. To
elect ten directors to hold office until the 2026 Annual Meeting.
2.
To
approve, on an advisory basis, the compensation of our executive officers.
3.
To
ratify the selection of Ernst & Young LLP as Middleby’s independent public accountants for the fiscal year ending
January 3, 2026.
4.
To
transact such other business as may properly come before the Annual Meeting or any adjournment thereof.
RECORD
DATE:
March 17, 2025
By Order of the Board of Directors
Michael D. Thompson
General Counsel and Secretary
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WHO MAY VOTE:
Your vote is important to us. Even if you plan to attend the Annual
Meeting virtually, we urge you to return your proxy promptly. For more information about how to vote, please see “Information
About the Annual Meeting,” which begins on page 56.
HOW TO ATTEND:
To attend and register for the virtual meeting, please see “Information
About the Annual Meeting,” which begins on page 56.
DELIVERY OF ANNUAL MEETING MATERIALS:
The Notice of Internet Availability of Proxy Materials, this Proxy
Statement, and Middleby’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024, are being distributed or
made available to stockholders on or about March 28, 2025.
We are holding
the Annual Meeting virtually. In order to attend and participate in the Annual Meeting, you will need the 16-digit control
number included on your Notice of Internet Availability of Proxy Materials, proxy card, or voting instruction card. You
may also ask questions and vote online by following the instructions provided at www. virtualshareholdermeeting.com/MIDD2025
during the Annual Meeting. A list of stockholders entitled to vote at the annual meeting will be available for stockholders
as of the record date upon request by sending an email to legal@middleby.com.
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REVIEW
YOUR PROXY STATEMENT
AND VOTE IN ONE OF FOUR WAYS: |
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| Please refer to
the enclosed proxy materials or
the information forwarded by your bank, broker or other holder
of record to see which voting methods are available to you. |
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INTERNET
Visit the website on your proxy card. |
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BY TELEPHONE
Call the telephone number on your proxy card. |
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BY MAIL
Sign, date and return your proxy card in the enclosed envelope. |
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IN PERSON
Attend the annual meeting virtually. See page 56 for instructions on how to attend. |
 2025 PROXY
STATEMENT |
3 |
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| 2025 PROXY
STATEMENT |
4 |
Proxy Summary
THIS SUMMARY HIGHLIGHTS CERTAIN INFORMATION FROM THIS
PROXY STATEMENT, BUT DOES NOT CONTAIN ALL THE INFORMATION THAT YOU SHOULD CONSIDER. PLEASE READ THE ENTIRE PROXY STATEMENT BEFORE
VOTING YOUR SHARES. FOR MORE COMPLETE INFORMATION REGARDING MIDDLEBY’S 2024 PERFORMANCE, PLEASE REVIEW OUR ANNUAL REPORT
ON FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 28, 2024.
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| WHEN |
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WHERE |
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RECORD
DATE |
Wednesday, May 14, 2025,
at 10:00 a.m. (CDT) |
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Virtual Meeting
www.virtualshareholdermeeting.com/
MIDD2025 |
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March 17, 2025 |
Meeting Agenda
The matters we will act upon at the Annual Meeting are:
| Proposal |
Board
voting
recommendation |
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Where to find
more information |
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Elect
ten directors for a one-year term |
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FOR
each nominee |
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Page
13 |
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Approve, on an advisory
basis, the compensation of Middleby’s named executive officers |
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FOR |
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Page
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Ratify the selection
of Ernst & Young LLP as Middleby’s independent registered public accounting firm for fiscal year 2025 |
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FOR |
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Page
54 |
What’s
New? |
We
published our 2024 Sustainability Metrics Update showcasing our commitment to iteratively improve our
data collection methods to provide data to stakeholders.
We
expanded the breadth and depth of our Board of Directors by adding two new directors in 2025 with experience
in augmenting organic growth via sales and operational enhancements as well as driving shareholder
value via strategic and financial planning and execution. In 2024, we added two new directors with
experience in financial execution, technology innovation, acquisition, and cybersecurity.
We
continue to expand our robust information security training and compliance program for all new and
existing employees. Our Audit Committee oversees the Company’s cybersecurity and information security
program and receives periodic updates from senior management on cybersecurity and information security matters.
We
hope our proxy statement continues to demonstrate our commitment to transparency and responsiveness to
the expectations and needs of all of our stakeholders. |
| 2025 PROXY
STATEMENT |
5 |
Director Nominees
| Name |
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Occupation |
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Age |
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Director
since |
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Independent |
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Committees |
| Julie M. Bowerman |
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Chief Marketing Officer at Kellanova |
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56 |
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2025 |
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• Nominating and Corporate Governance
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| Sarah Palisi Chapin |
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Principal of Chapin Creative, LLC |
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63 |
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2013 |
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• Nominating
and Corporate Governance (chair)
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| Timothy J. FitzGerald |
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Chief Executive Officer of The Middleby Corporation |
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55 |
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2019 |
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| Edward P. Garden |
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Chairman and CEO of Garden Investments |
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63 |
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2025 |
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• Compensation
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| Cathy L. McCarthy |
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President and Chief Executive Officer of Cross Tack Consulting, Inc. |
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77 |
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2015 |
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• Audit (chair)*
• Nominating and Corporate Governance
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| Robert A. Nerbonne |
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Former CEO and President of multiple commercial foodservice equipment companies |
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67 |
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2019 |
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• Nominating and Corporate Governance |
Gordon
J. O’Brien
Chairman of the
Board |
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Managing Partner at Cannon Capital |
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59 |
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2005 |
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• Compensation |
| Stephen R. Scherger |
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Executive Vice President and Chief Financial Officer of Graphic Packaging Holding Company. |
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60 |
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2024 |
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• Audit*
• Compensation (chair)
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| Tejas P. Shah |
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Chief Information Officer of Fluence Energy Inc. |
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45 |
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2024 |
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• Audit* |
| Nassem
A. Ziyad |
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Executive Chairman of Ziyad Brothers Importing |
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59 |
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2017 |
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• Audit |
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Audit Committee Financial Expert |
| 2025 PROXY
STATEMENT |
6 |
2024 Performance
Middleby Segments
The following graphics show how our business revenue is distributed in terms of segments and geography.
Adjusted EPS, Adjusted EBITDA, and Free Cash Flow are not prepared in accordance with generally accepted accounting principles
in the United States (GAAP). For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP
financial measures and insight into how these non-GAAP measures are considered by management, please see Annex A.
Proforma Free Cash Flow for 2021 is $315 million, excluding the termination fee received, net of taxes and deal costs of approximately
$68 million.
References throughout this document to EBITDA are references to Adjusted EBITDA, as such term is further described in Annex
A.
| 2025 PROXY
STATEMENT |
7 |
Strategic Developments
| 2025 PROXY
STATEMENT |
8 |
Enhancing and Expanding Our Go-To-Market Initiatives
Middleby is continuing to invest in transformational go-to-market initiatives focused on end-user engagement, expansion of brand awareness, the launching of new product innovations, which is leading to a growing pipeline of customer opportunities.
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Offered customers and partners active training and demonstrations on live equipment with culinary professionals in our Middleby Innovation Kitchens ("MIK") and other test kitchens |
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Enhanced a deeply experienced internal team and program to serve the dealer community |
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Evolved and strengthened our strategic partnerships and dedicated Middleby sales teams focused on global and emerging chains, consultants, designers, and specifiers |
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Ongoing investments in digital sales and marketing capabilities to reach key customers |
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Enhanced focus on after-sale service support with a new state-of-the-art service training facility in the MIK Dallas and investments in Middleby service integrated software |
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Generated Middleby-specific content that can be utilized across multiple channels to educate and captivate our customers |
The Middleby Innovation Kitchens (“MIK”), with locations in Dallas USA and Madrid, Spain, have hosted over 40,000 visitors to date and 3,500 events since their debuts. The MIK Dallas is a 40,000-square foot facility with 15 live cooking vignettes and more than 150 pieces of Middleby foodservice and beverage technology. The Middleby Innovation Kitchens Madrid opened in early 2023 to serve the European market. Middleby Innovation Kitchens Middle East (Dubai), Germany (Munich), and Italy (Venice) are opening soon.
| 2025 PROXY
STATEMENT |
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Strategic Growth Initiatives
Focused M&A On Three Strategic Themes
Middleby has completed 18 transactions over the past three years around three strategic themes, expansion of our Ice & Beverage platform, focused acquisition of forward looking technologies that competitively position our existing businesses, and continued development of our portfolio of Food Processing full line solutions and extension into strategic categories.
Middleby has historically realized acquisition synergies from leveraging sourcing and supply-chain actions, combined sales and marketing investments, product and technology sharing - accelerating innovation and expense reductions through best practices and eliminating duplicative costs.
Some of these synergies are realized at the individual company level while others, particularly in the case of our investments in technology and innovation, position for organic growth and margin expansion across the Middleby portfolio of companies.
Strategic Investment Themes
Technology and Innovation Leadership / Ice & Beverage Platform Expansion /
Food Processing Full-Line Solutions and Application Extensions
We completed five acquisitions in 2024 that enhance the capabilities and synergies among our Food Processing and Commercial Foodservice business segments.
Ice & Beverage Platform
Emery Thompson designs and manufactures products offerings in the frozen dessert category, including gelato, frozen yogurt and custard, sorbet, hard ice cream, sherbet and Italian ice.
Food Processing Full-Line Solutions
GBT GmbH Bakery Technology strengthens our offerings and expertise in high-grade industrial baking and bread lines. MaxMac allows Middleby to increase local offerings to the Brazilian market of a number of comprehensive solutions, manufacturing and spare parts in the Food Processing space. JC Ford features a broad range of automated, full-line solutions for corn and flour tortillas, tortilla chips, and other corn-based snacks, significantly strengthening our presence in this fast growing product category. Gorreri develops and manufactures a broad line of advanced industrial and semi-industrial baked goods solutions that are highly complementary to our Food Processing group and its existing offerings.
| 2025 PROXY
STATEMENT |
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Compensation Highlights
Our executive compensation
program strikes a balance of fixed and variable elements with short- and long-term objectives. As shown below, in fiscal year
2024, 63% of target compensation for our Chief Executive Officer and 61% of target compensation (on average) for our other Named
Executive Officers (the “NEOs”) was performance-based and at risk.
As discussed in the Compensation Discussion
and Analysis, our executive compensation program features a combination of base salary, an annual performance-based cash bonus
incentive plan, and long-term equity incentive awards. The short- and long-term incentive programs have distinct performance metrics.
| 2025 PROXY
STATEMENT |
11 |
Corporate Governance
Highlights
We believe that robust
corporate governance is critical for making prudent decisions in the long-term interests of stockholders. Below are key elements
of our corporate governance practices.
| What
We Do |
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Majority vote standard for uncontested director elections |
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Nine out of ten directors are independent |
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Completely independent Board committees |
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Separate Chairman and CEO roles |
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Independent Chairman |
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Annual stockholder engagement program |
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Independent reviews by the Board and Audit Committee of the Company’s strategy, business, and the related key risks
and mitigation activities |
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Executive sessions at every in-person or virtual Board and committee meeting without management present |
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Clawback Policy applicable to all executive officers and other covered officers |
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Confidential, multilingual Anonymous Ethics and Compliance Hotline |
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The Compensation Committee is advised by an independent compensation consultant |
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Comprehensive Sustainability Report refreshed on periodic basis |
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Annual Board skillset evaluation |
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Corporate Governance Guidelines |
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Annual Board and committee self-evaluations |
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Stock ownership guidelines for executive officers and non-employee directors |
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Refreshed Middleby Code of Conduct and related training and compliance programs |
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EHS Policy, Equal Employment Opportunity Policy and Human Rights Policy made publicly available on Company website |
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Supplier Code of Conduct applicable to all suppliers to the Company |
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Refreshed Annual Code of Conduct training for all employees |
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Enhanced disclosure of robust cybersecurity training programs |
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Refreshed Anti-Bribery Policy made publicly available on Company’s website |
| What
We Don’t Do |
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No golden parachute tax gross-ups for executive officers |
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No poison pill in place |
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No stock option repricing without stockholder approval |
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No excessive perquisites for executive officers |
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No dividends paid or accumulated on unvested RSUs or PSUs |
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No hedging, pledging and short selling of Company stock per our Insider Trading Compliance Program |
| 2025 PROXY
STATEMENT |
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Proposal No. 1
Election of Directors
The Board has
nominated the ten current directors to serve as directors until the 2026 Annual Meeting of Stockholders and until their
successors are duly elected and qualified or until their earlier death, resignation, or removal. Each of the nominees has
consented to serve as a director if elected. The Board knows of no reason why any nominee would be unavailable to serve, but,
in the event of any such unavailability, the proxies received will be voted for any substitute nominees the Board
recommends.
How We Select Directors
The Nominating and
Corporate Governance Committee (“NCGC”) periodically reviews the overall composition of the Board and recommends,
if necessary, measures to help ensure the Board reflects an appropriate balance of knowledge, experience, skills and expertise.
This process unfolds in two phases:
| 2025 PROXY
STATEMENT |
13 |
The following matrix
shows the diversity of relevant skills and experience among our nominees.
| Competency |
Bowerman |
Chapin |
FitzGerald |
Garden |
McCarthy |
Nerbonne |
O’Brien |
Scherger |
Shah |
Ziyad |
Senior
Leadership Experience
Proven ability to lead organizations, set direction, and guide executive teams. |
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Financial
Expertise
Strong experience with responsibility as named in company filings CFO, Audit, Corporate Treasury or public company CEO. Expert
on financial reporting, capital structures, and complex financial transactions. |
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Industry
Knowledge
Deep understanding of the industries served, trends, regulations, and competitive landscape. |
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Risk
& Technology (Cyber, Al, IT)
Expertise in risk management, cybersecurity, Al, IT infrastructure, and digital risk mitigation. |
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Governance,
Compliance & Sustainability
Meaningful knowledge of corporate governance best practices, ethics, regulatory compliance, and sustainability principles. |
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Strategic
Planning
Ability to develop long-term strategies that align with organizational goals and shareholder results, evaluating alternatives. |
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Sales,
Marketing, Branding, Social Media & Digital Engagement
Experience in branding, digital marketing, social media engagement, and consumer outreach strategies. |
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Mergers
& Acquisitions
Expertise and practical knowledge in the field of M&A at the executive level |
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International
Markets
Experience leading businesses with substantial business operations and customer base outside North America |
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Human
Capital & Succession
Experience directly managing a large number of employees, oversight of compensation structures, and/or succession planning, |
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| 2025 PROXY
STATEMENT |
14 |
| Competency |
Bowerman |
Chapin |
FitzGerald |
Garden |
McCarthy |
Nerbonne |
O’Brien |
Scherger |
Shah |
Ziyad |
Shareholder Engagement
Ability to manage relationships with shareholders, regulators, communities, and other key stakeholders. |
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Investment &
Portfolio Management
Expertise in managing investment strategies, asset allocation, and providing portfolio oversight. |
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Technology Experience
Leadership of Engineering, R&D or C Suite of a Tech Company |
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The NCGC’s
policy is to consider any candidate recommended by stockholders by evaluating the needs of the Board and the qualifications of
the candidate. The NCGC may establish formal procedures regarding stockholder submission of candidates in the future.
| 2025 PROXY
STATEMENT |
15 |
Director Nominees
Julie M. Bowerman
Age:
56
Director
since: 2025
INDEPENDENT
Committees:
• Nominating and Corporate Governance* |
Professional
background
Ms. Bowerman
has served as the Chief Marketing Officer of Kellanova, a food manufacturing company, since its spinoff from Kellogg Company
in 2023. At Kellogg Company, Ms. Bowerman served as the Chief Marketing and Ecommerce Officer from 2021 to 2023 and as
the Chief Global Digital Consumer and Customer Experience Officer from 2019 to 2023. Prior to joining Kellogg in 2019,
Ms. Bowerman served as the Senior Vice President, Digital Engagement and eCommerce at Hain Celestial Group, Inc., a leading
organic and natural products company with operations in North America, Europe, Asia and the Middle East. Prior to joining
Hain Celestial Group, Inc. in 2017, she spent over 20 years at The Coca-Cola Company, serving in various roles, including
as Global Vice President, eCommerce, Shopper Marketing and Digital from 2015 to 2017, and as the Vice President and General
Manager, eCommerce, North America from 2013 to 2015. |
Service on other
public boards
• Brixmor
Property Group Inc. (since 2019)
(nominating and corporate governance committee chair) |
Relevant skills
Ms. Bowerman’s development
and implementation of revenue growth and profit generation via physical and digital commerce, marketing, and go to market
strategies as well as her experience and track record of driving value creation in consumer products businesses provides
an important perspective to the Board’s oversight of the development and execution of the Company’s strategic
plan. |
| * Effective February 24, 2025 |
Sarah Palisi Chapin
Age:
63
Director
since: 2013
INDEPENDENT
Committees:
• Nominating and Corporate Governance (chair) |
Professional
background
Ms. Chapin has been Principal of Chapin Creative, LLC, a business incubation, strategy, and marketing advisory firm, since
2016. For seven years before founding Chapin Creative, she was Chief Executive Officer and a board member of Hail Merry, a
marketer and manufacturer of gluten-free, vegan, refrigerated plant ingredient snacks. Earlier in her career, she was Chief
Executive Officer, then Chairman, of Enersyst Development Center, an intellectual property development and licensing firm
in food processing, vending, and foodservice, from 1995 to 2003. She served as Vice President of Worldwide Business Strategy
of Burger King Corporation from 1990 to 1995, including as co-leader for development of Restaurant Services, Inc., Burger
King’s purchasing coop. She began her career in food service as Director of New Concepts and Engineering for Pizza Hut
from 1985 to 1990. |
Service
on other public boards
• Caribou Coffee Company (2007-2013)
(compensation committee chair and nominating and corporate governance committee member) |
Service
on private boards
• FlowTrans LLC, a liquid food grade tanker transportation and logistics business (since 2021)
• Yummy Spoonfuls, an organic baby and toddler food company (2014-2018)
• Hail Merry, a plant-based food brand (2009-2016)
• PrimeSource Foodservice Equipment Distributors (2002-2012)
• IRM, a data analytics subscription company (1998-2008)
• Enersyst Development Center (1995-2002) |
Relevant skills
Ms. Chapin’s
more than three decades of experience in the food service and food processing industries give her a comprehensive understanding
of strategy, franchising, commercial kitchen technology, brand management, product development, marketing, operational
excellence, market expansion, and acquisition strategy. |
Timothy J. FitzGerald
Age: 55
Director
since: 2019
Committees:
• None |
Professional background
Mr. FitzGerald
has been Chief Executive Officer of Middleby since February 2019. Before assuming that role, he held many positions with
Middleby and its principal subsidiary, Middleby Marshall Inc. (“MM”), including Vice President and Chief Financial
Officer of Middleby and MM from 2003 to 2019; Vice President and Corporate Controller of Middleby and MM from 2000 to
2003; and Corporate Controller of Middleby and MM from 1998 to 2003. Before joining Middleby, Mr. FitzGerald was
an Audit Manager with Arthur Anderson LLP for seven years. |
Service
on private boards
• Alliance Holdings Inc., a manufacturer of commercial and residential laundry equipment (since
2021)
• Hardinge Inc., a metal machining provider (since 2018) |
Relevant
skills
Mr. FitzGerald’s
extensive history at the subsidiary and corporate level of the Company and his day to day leadership as CEO provide the
Board with intimate knowledge and an invaluable perspective regarding Middleby’s operations, challenges, and business
strategy. |
| 2025 PROXY
STATEMENT |
16 |
Edward P. Garden
Age: 63
Director
since: 2025
INDEPENDENT
Committees:
• Compensation* |
Professional background
Since 2023,
Mr. Garden is Chairman and CEO of Garden Investments, an investment management firm. Mr. Garden also currently
is a director of General Electric Company, where he is a member of the Management Development & Compensation Committee
and the Audit Committee. Mr. Garden previously served as a director on the boards of The Wendy’s Company from
2004 to 2015, Family Dollar Stores, Inc. from 2011 to 2015, Pentair plc from 2016 to 2018, The Bank of New York Mellon
Corporation from 2014 to 2019, Legg Mason, Inc. from 2019 to 2020, and Invesco Ltd from 2020 to 2022. From 2005-2023,
Mr. Garden served as Chief Investment Officer and Founding Partner of Trian Fund Management. |
Service on other public boards
• General
Electric Company doing business as GE Aerospace (since 2017)
• Janus
Henderson Group (2022-2023)
• Invesco
Ltd. (2020-2022)
• Legg Mason, Inc. (2019-2020)
• The
Bank of New York Mellon Corporation (2014-2019)
• The
Wendy’s Company (2004-2015)
• Family
Dollar Stores (2011-2015)
• Pentair
plc (2016-2018) |
Relevant skills
Mr. Garden
brings extensive experience facilitating positive strategic, operational and governance changes as a director. Mr. Garden’s
Board experience at companies such as General Electric provides a wealth of perspective as the Board executes on the Company’s
value creation strategy.
Mr. Garden
was nominated as a director pursuant to the terms of the Cooperation Agreement (as defined and described under “Cooperation
Agreement” below). |
| * Effective February 24, 2025 |
Cathy L. McCarthy
Age: 77
Director
since: 2015
INDEPENDENT
Committees:
• Audit
(Chair)
• Nominating
and Corporate Governance |
Professional background
Since 2011, Ms. McCarthy has served as President and Chief Executive Officer of Cross Tack Consulting, Inc., a management
consulting firm. From 2007 to 2011, Ms. McCarthy served as President and Chief Executive Officer of SM&A, a public company
that provides business strategy, competition management, and project management consulting services. Before becoming President,
Ms. McCarthy served in various senior executive positions at SM&A, including Executive Vice President, Chief Financial
Officer, and Corporate Secretary from 2005 to mid-2007. Prior to SM&A, Ms. McCarthy was Chief Financial Officer of PIA
Merchandising, an in-store merchandising company; Giant Group, Ltd., an investment firm; and Wherehouse Entertainment, a major
music and video retailer. Ms. McCarthy began her career at Mellon Bank, N.A., where she was Vice President of several lending
departments responsible for oversight of highly leveraged and distressed assets and commercial lending. |
Service on other public boards
• Rigetti
Computing, Inc. (since 2022) (Chairperson of the Audit Committee)
• Solta
Medical, Inc. (2007-2014)
• SM&A
(2007-2008) |
Relevant skills
Ms. McCarthy’s
operating experience as a Chief Executive Officer and a Chief Financial Officer of numerous public and private companies,
combined with her extensive background in strategy, mergers and acquisitions, financial reporting, and internal controls,
provide the Board with valuable strategy and financial oversight capabilities. |
Robert A. Nerbonne
Age: 67
Director
since: 2019
INDEPENDENT
Committees:
• Nominating
and Corporate Governance |
Professional background
Mr. Nerbonne was formerly the CEO and President of multiple commercial foodservice equipment companies. He was an officer
and board member of Cooper-Atkins Corporation, a company that manufactures thermometers, timers, and wireless monitoring solutions,
from 2014 to 2018. He was a consultant for Cooper-Atkins Corporation from 2012 to 2014. Earlier in his career, Mr. Nerbonne
was Chief Executive Officer of Ali Group North America, a manufacturer of equipment for the food service industry, from 2009
to 2011. He was Group President, Americas of Enodis (today Welbilt), and held other senior roles at that company, from 2002
to 2009. Prior to 2002, he held various leadership positions in the commercial food service industry, including President
of Pitco from 1988 to 1998, before Middleby acquired that company. |
Service on private boards
• Cooper-Atkins
Corporation (2014-2018) |
Relevant skills
Mr. Nerbonne’s
extensive and varied leadership roles within the commercial food service industry, as well as his mergers and acquisition
background, provide the Board with valuable insight on how to proactively address market conditions and develop long-term
strategy. |
| 2025 PROXY
STATEMENT |
17 |
Gordon J. O’Brien
Age:
59
Director
since: 2005
Non-Executive
Chairman
since: 2019
INDEPENDENT
Committees:
• Compensation |
Professional background
Mr. O’Brien
has been Managing Partner at Cannon Capital since 2017. In addition, from 2020 until mid-2022, he served as Chief Investment
Officer and Chief Financial Officer at Re:Build Manufacturing, LLC. Before that, he was President of Specialty Finance
and Operations of American Capital Strategies from 2008 to 2017, and Principal and Managing Director of American Capital
Strategies from 1998 to 2008. Earlier in his career, he was Vice President of Pennington Partners/PENMAN Partners, a
private equity firm, from 1995 to 1998. |
Relevant skills
Mr. O’Brien’s
extensive experience with capital markets and acquisition strategy, as well as his private equity experience as a director
on numerous other boards, is valuable in Board discussions regarding Middleby’s capital structure, liquidity needs,
and acquisition strategy. |
Stephen R. Scherger
Age: 60
Director
since: 2024
INDEPENDENT
Committees:
• Audit
• Compensation |
Professional background
Since 2015,
Mr. Scherger serves as the Executive Vice President and Chief Financial Officer of Graphic Packaging Holding Company,
a leading provider of sustainable fiber-based packaging solutions. From October 1, 2014 through December 31, 2014, Mr.
Scherger was the Senior Vice President – Finance. From April 2012 through September 2014, Mr. Scherger served as
Senior Vice President, Consumer Packaging Division. Mr. Scherger joined Graphic Packaging Holding Company in April of
2012 from MeadWestvaco Corporation, where he served as President, Beverage and Consumer Electronics. Mr. Scherger was
with MeadWestvaco Corporation from 1986 to 2012 and held positions including Vice President, Corporate Strategy; Vice
President and General Manager, Beverage Packaging; Vice President and Chief Financial Officer, Papers Group, Vice President
Asia Pacific and Latin America, Beverage Packaging, Chief Financial Officer Beverage Packaging and other executive-level
positions. |
Service on private boards
• Junior
Achievement of Georgia (since 2016)
• Paperboard
Packaging Council (since 2022) |
Relevant skills
Mr. Scherger
is a multi-dimensional executive who brings extensive experience as both a public company Chief Financial Officer and
a key business segment leader at Graphic Packaging Holding Company. He has been a key member of a C-suite that has delivered
growth in revenues driven by higher-than-market organic growth, and 15 acquisitions supported by enhanced margins and
improved asset productivity. |
Tejas P. Shah
Age: 45
Director
since: 2024
INDEPENDENT
Committees:
• Audit |
Professional background
Since 2023, Mr. Shah serves
as Chief Information Officer of Fluence Energy Inc., a public company that provides market- leading energy storage products
and services and cloud-based software for renewables and storage assets. From 2022–23, Mr. Shah served as Chief
Information Officer at Tonal. From 2018-22, Mr. Shah served in various roles at Arlo Technologies Inc., where he
was promoted from Chief Information Officer to Senior Vice President, Product and Chief Information Officer, to Senior
Vice President, Software, SaaS, and Services and Chief Information Officer. |
Service on private boards
• Board
advisor for Bugcrowd, Inc., crowdsourced cybersecurity platform (since 2019) |
Relevant skills
In his role as a senior executive
at Fluence Energy, Inc., Mr. Shah uses his extensive global experience to drive innovation in products and technology.
In addition to his extensive experience in technology development and the evolving landscape of cybersecurity and information
technology, he possesses a deep understanding of financial and operational matters that provides the Board with an invaluable
resource to leverage the Company’s intellectual property to drive value creation for the Company. |
| 2025 PROXY
STATEMENT |
18 |
Nassem A. Ziyad
Age:
59
Director
since: 2017
INDEPENDENT
Committees:
• Audit |
Professional background
Mr. Ziyad
is Executive Chairman of Ziyad Brothers Importing, a leading distributor and global marketer of a diverse portfolio of
ethnic food products, representing multinational customers such as Nestle, Kraft and Bel, founded in 1966. Before assuming
that role in 2022, Mr. Ziyad was Chief Executive Officer Chief Operating Officer of Ziyad Brothers Importing since
1983. |
Relevant
skills
Mr. Ziyad’s
extensive experience in marketing, branding, and financial management of food products throughout the world is valuable
in Board discussions regarding ethnic food distribution, cross-border trade, global ethnic food trends, brand management,
and marketing. |
The Board has a
policy that requires any director who does not receive a majority of votes cast in an uncontested election to promptly tender
a resignation. The NCGC will consider any such resignation and recommend appropriate action to the Board. The Board is
required to take formal action on the NCGC’s recommendation no later than 90 days following the date of the
stockholders’ meeting at which the election of directors occurred. The Board will consider the information, factors,
and alternatives reviewed by the NCGC and such additional information, factors, and alternatives as the Board deems relevant.
Within four business days after the Board decides whether to accept or reject a director resignation, the Company will
publicly disclose that decision in a Form 8-K filed with the Securities and Exchange Commission (“SEC”),
including an explanation of the process by which the decision was made and, if applicable, the Board’s reason(s) for
rejecting the tendered resignation.
 |
THE
BOARD OF DIRECTORS RECOMMENDS THAT STOCKHOLDERS VOTE “FOR” EACH OF THE ABOVE NAMED NOMINEES AS A DIRECTOR OF THE
COMPANY |
| 2025 PROXY
STATEMENT |
19 |
Governance
This section summarizes the Board’s responsibilities and significant policies. For more complete
information, see Middleby’s Corporate Governance Guidelines, which are available on our website, www.middleby.com, under
“Investors—Corporate Governance.”
Board Leadership
Structure
The Board oversees management’s performance to help ensure that Middleby operates in an effective,
efficient, and ethical manner in order to produce value for our stockholders. To achieve this goal, the Board monitors both the
performance of the Company (in relation to goals, strategy, and competitors) and the performance of the Chief Executive Officer,
and offers constructive advice and feedback.
Our Corporate Governance Guidelines require the offices of the Chairman of the Board and the Chief Executive
Officer to be separate. We believe having an independent director serve as Chairman of the Board best serves the Company and our
stockholders, as we believe this leadership structure provides a broader depth of experience that informs strategy, strengthens
the Board’s integrity and independence, and reduces potential conflicts in the areas of performance evaluation, executive
compensation, succession planning, and the recruitment of new directors.
Currently, the Board is led by Gordon J. O’Brien, who has been Middleby’s independent Chairman
since February 2019. Mr. O’Brien previously served as Lead Independent Director of the Board for nine years. In his
capacity as independent Chairman of the Board, Mr. O’Brien is able to focus on and tangibly oversee Middleby’s
senior management (including the CEO), Board leadership, and governance-related matters, while Mr. FitzGerald, our CEO, is
able to exclusively focus on the Company’s strategy, day-to-day operations, and financial organizational health. Mr. O’Brien’s
long-term relationship with Middleby and extensive knowledge of the Company’s operating structure and culture provides him
with a broad and deep perspective that informs his judgment.
Independence
A majority of Middleby’s directors must be “independent” as such term is defined under
Nasdaq listing standards. The Board reviews annually the relationships that each director has with the Company (either directly
or as a partner, stockholder, or officer of an organization that has a relationship with the Company). The Board has determined
that every director except Mr. FitzGerald, our CEO, is independent.
Risk Oversight
The Board has responsibility for oversight of risk management. The Board and its committees regularly
review information regarding Middleby’s credit, liquidity, and operations and other reports that are designed to inform
the Board and its committees about how we identify, assess, and manage critical risks and our risk mitigation strategies.
The Compensation
Committee is responsible for overseeing the management of risks relating to our executive compensation plans, Board
of Directors compensation, and executive incentive plan design.
The Audit
Committee oversees management of financial risks, financial reporting, disclosure requirements, internal controls over
financial reporting, credit and liquidity matters, and our operational infrastructure. In addition, the Audit Committee is responsible
for oversight of cybersecurity risk management, regulatory matters, and compliance programs. It oversees the company’s cybersecurity
and information security program and receives periodic updates from senior management on cybersecurity and information security
matters.
The Nominating and Corporate
Governance Committee is responsible for evaluating risk associated with director and management
succession planning, overseeing our sustainability reporting, maintaining director training programs, and evaluating the Company’s
environmental, social and governance policies and initiatives.
Management advises the Board about material risks as part of its broader responsibility to keep the Board
well informed on all matters of significance to the Company. The Board believes its current leadership structure facilitates this
clear delineation of responsibility with respect to risk management. Additionally, maintaining an independent Board with an independent
Chairman promotes open discussion and assessment of the Company’s ability to manage risk.
| 2025 PROXY
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20 |
Annual Board
Evaluation and Skillset Assessment
The NCGC coordinates an annual evaluation and skillset assessment of the Board as a whole and of each
Board committee. The assessment includes a review of any areas in which the Board or management believe the Board can make a better
contribution to the Company. The NCGC utilizes third party experts to conduct skillset assessments in the context of the Company’s
overall corporate strategy. The NCGC discusses the results of the evaluation and skillset assessment with the full Board and each
individual committee. In addition, the results are used to evaluate and determine the characteristics and critical skills required
of prospective candidates for election to the Board and to make recommendations with respect to assignments of directors to various
committees and leadership positions.
Stockholder
Engagement
We believe it is important for our governance process to have meaningful engagement with our stockholders
and to understand their perspectives on corporate governance, executive compensation, and other issues that are important to them
and to the Company.
We value opportunities to proactively engage directly with our stockholders on topics of concern or interest,
and use that feedback directly to inform our business decision-making process. The Company regularly shares information with stockholders
via quarterly earnings releases, investor presentations posted on Middleby’s website, and attendance at investor conferences,
trade shows, and other industry events.
Beginning in 2019, the Company has annually engaged in an open dialogue with stockholders to help ensure
leadership was hearing stockholder perspectives regarding our executive compensation practices, sustainability practices, and other topics
of stockholder interest. We strive to reach out to holders of at least 75% of the Company’s common stock and to have meetings
with holders of at least 25% of the Company’s common stock. These meetings are typically scheduled for the fourth quarter
of the year or early in the first quarter of the following year to inform decision-making and priorities for the upcoming fiscal
year. Meetings are usually attended by the CFO and General Counsel and one or more Board members upon stockholder request.
In January-March 2025, we engaged with stockholders to discuss the Company’s sustainability initiatives
and to request feedback generally from our stockholders. For this outreach program, we contacted Middleby’s top 30 stockholders,
representing approximately 87% of our total outstanding shares, and conducted meetings or otherwise had correspondence with stockholders
representing approximately 63% of our total outstanding shares.
Among other things, we discussed our sustainability reporting practices and processes designed to provide
information to the Company’s decision makers and stakeholders to drive shareholder value and fulfill the expectations of
our stakeholders. Our investors encouraged us to continue evolving our sustainability reporting to meet customer, investor and
regulatory expectations and requirements. Stakeholders also provided thoughtful and helpful recommendations on reporting frameworks.
Our investors also encouraged us to continue to emphasize how our product innovations drive sustainable
solutions for our customers.
Our engagement efforts gave us valuable insight that has helped to inform the Company’s business
practices and strategic decision-making. We will continue our stockholder engagement program annually with the goal of evolving
our practices to best meet the needs of the Company and our stakeholders.
Cooperation
Agreement
On February 24, 2025, the Company entered into a Cooperation Agreement (the “Cooperation Agreement”)
with Garden Investment Management, L.P. (“GI”). Pursuant to the Cooperation Agreement, the Board agreed to appoint
Edward P. Garden as a member of the Board, with an initial term expiring at the Company’s 2025 Annual Meeting of Stockholders
and agreed to nominate Mr. Garden to stand for nomination at such meeting.
Under the terms of the Cooperation Agreement: (i) GI will abide by customary standstill restrictions
(subjects to certain exceptions relating to private communications to the Company, among others) until the expiration of the Standstill
Period (as defined in the Cooperation Agreement); (ii) GI agreed to certain voting commitments with respect to the 2025 Annual
Meeting of Stockholders; and (iii) the Company and GI agreed to a customary mutual non-disparagement provision.
A summary of the Cooperation Agreement is included in the Company’s Current Report on Form 8-K,
filed with the SEC on February 25, 2025 (the “Form 8-K”). The full Cooperation Agreement is filed as Exhibit 10.1
to the Form 8-K.
Director Onboarding
and Continuing Education
The Company provides new directors with an orientation program to familiarize them with our business;
strategic plans; significant financial, accounting, and risk-management issues; compliance programs; conflicts policies; Code
of Conduct; Corporate Governance Guidelines; principal officers; and internal auditors and independent auditors. Board members
who have not been associated with a publicly traded company previously also are required to attend public company director education
selected by the NCGC.
| 2025 PROXY
STATEMENT |
21 |
Every director is expected to participate in continuing educational programs in order to maintain the
necessary level of expertise to function as a director. The NCGC requires all standing Board members to maintain membership with
the National Association of Corporate Directors (“NACD”) and annually arranges for Board members to attend NACD training
programs and other corporate governance training initiatives. The Company pays all reasonable expenses relating to continuing
director education.
Succession
Planning
The Board is responsible for succession planning for the Chief Executive Officer and other executive
officers. The Board of Directors and the Chief Executive Officer meet in a private session two times each fiscal year to discuss
succession planning, a review of the executive management team, executive development initiatives, and other executive matters.
The Chairperson of the NCGC acts as the Chairperson and maintains minutes of these succession planning meetings.
Board Meetings
The Board held four in-person meetings and seven virtual meetings during the fiscal year ended December
28, 2024. Directors collectively had 97% attendance at full Board meetings and 98% attendance when including attendance at committee meetings. Executive sessions of the independent directors are held in
conjunction with regularly scheduled meetings of the Board and otherwise as deemed necessary. The independent directors met in
executive session six times without the presence of management.
Directors are expected to physically or virtually attend the annual meeting of stockholders. All of the
directors at the time virtually attended the 2024 Annual Meeting of Stockholders.
The independent directors are required, unless waived by the Board, to attend an annual strategic review
meeting in the third or fourth quarter each year.
Members of senior management who are not directors may be invited to participate in Board meetings or
other Board functions when appropriate. The Board encourages the Chief Executive Officer to bring members of management from time
to time into Board meetings to provide insight into items being discussed by the Board, to make presentations to the Board on
particular matters, and to help ensure the Board has an opportunity to interact with managers who have significant potential.
Committees
of the Board
Middleby’s Board currently has an Audit Committee, established in accordance with Section 3(a)(58)(A)
of the Securities Exchange Act of 1934 (as amended, the “Exchange Act”), a Compensation Committee, and a Nominating
and Corporate Governance Committee. The charters for these three committees are available on our website, www.middleby.com, on
the “Investors—Corporate Governance” page. All three committees are composed entirely of independent directors.
The Board and each committee actively oversees management of risks as discussed further, in “Governance–Risk Oversight”.
Audit Committee
Members:
• McCarthy (Chairperson),
Scherger and Shah
Meetings in fiscal year
2024:
• five times virtually,
one time in person
|
|
The
Audit
Committee
is
responsible
for:
• selecting Middleby’s
independent auditor;
• reviewing the arrangements
for and scope of the audit and pre-approving permitted non-audit services;
• reviewing the Company’s
interim and annual financial statements or other results of the audit;
• reviewing the Company’s
internal accounting procedures and controls and the recommendations of the independent
auditor;
• overseeing cyber risk management,
regulatory matters and compliance programs; and
• reviewing
the external audit process.
|
| The Board has determined that Ms. McCarthy, Mr. Scherger and Mr. Shah are “financially sophisticated,”
as required by Nasdaq Rule 5605(c)(2), and qualify as “audit committee financial experts,” as such term is defined
in SEC rules. All of the members have been determined by the Board to meet the additional independence criteria for audit
committee members set forth in Nasdaq Rule 5605(c)(2). |
| 2025 PROXY
STATEMENT |
22 |
Compensation Committee
Members:
• Scherger (Chairperson)*,
Garden*, O’Brien and Ziyad**
Meetings in fiscal year
2024:
• two times virtually,
four times in person
|
|
The
Compensation
Committee
is
responsible
for:
•
making recommendations concerning
the compensation of the non-employee members of the Board and all executive officers;
•
administering the Value Creation
Incentive Plan, our annual incentive compensation program, including establishing
and certifying performance goals; and
•
administering and making grants
to executive officers under the Company’s 2021 Long-Term Incentive Plan (the
“LTIP”).
|
All of the members of the Compensation Committee have been determined by the Board to be independent
as defined under applicable Nasdaq listing standards. There are no compensation committee interlocks.
|
* Since February 24, 2025
** Since March 19, 2025
Nominating and
Corporate Governance Committee
Members:
• Chapin (Chairperson), Bowerman*,
McCarthy, and Nerbonne
Meetings in fiscal year 2024:
• one time virtually, four
times in person
|
|
The
Nominating
and
Corporate
Governance
Committee
is
responsible
for:
•
discussing, reviewing, evaluating, and maintaining
a slate of potential director nominees, and recommending potential director nominees to the Board;
•
administering the annual Board evaluation and
skillset assessment process;
•
maintaining Middleby’s director training
programs;
•
developing and recommending to the Board corporate
governance principles applicable to the Company;
•
overseeing succession planning for Board and
committee members;
•
overseeing and reviewing sustainability policies
and procedures; and
• evaluation
of the Board and Middleby’s executive officers, including with respect to the Board’s composition and procedures.
|
* Since February 24, 2025
Service on
Other Boards
We do not have a policy limiting the number of other public company boards of directors upon which a
director may sit. However, the NCGC considers the number of other public company boards and comparable governing bodies on which
a prospective nominee or a director is a member. In addition, we expect directors to be fully committed to devoting as much time
as necessary to fulfilling their Board responsibilities, both in terms of preparation for, and attendance and participation at,
meetings.
Directors must provide prior written notice to the Chairperson of the NCGC before accepting a seat on
the board of a public or private entity.
In recognition of the enhanced time commitment associated with membership on a public company’s
audit committee, the Board has adopted a policy that no member of the Audit Committee may serve simultaneously on the audit committees
of more than two other public companies.
Age and Term
Limits
We believe the Board operates most effectively with a mix of incumbent directors who have a deep understanding
of Middleby and new directors who offer fresh perspectives. The Board does not currently have term limits or a mandatory retirement
age.
However, the NCGC and Board consistently evaluates the contributions of individual Board members to the
Board and the Company. The NCGC reviews all directors annually before deciding on our nominees.
Stockholder
Communications With the Board
Stockholders may contact the Board of Directors about bona fide issues or questions concerning the Company
by sending an email to legal@middleby.com or by writing to the Corporate Secretary at the Company’s principal executive
offices at 1400 Toastmaster Drive, Elgin, Illinois, 60120. Any matter intended for the Board of Directors, or for any individual
member or members of the Board of Directors, should be directed to the email or physical address noted above, with a request to
forward the communication to the intended recipient(s). In general, any stockholder communication about bona fide issues concerning
the Company delivered to the Corporate Secretary will be forwarded in accordance with the stockholder’s instructions.
| 2025 PROXY
STATEMENT |
23 |
Related Party
Transactions
There have been no material reportable related person transactions since the beginning of fiscal year
2024. The Audit Committee is responsible for reviewing, and approving related person transactions. In fulfilling this responsibility,
the Audit Committee considers whether the transaction would be on fair and reasonable terms no less favorable to the Company than
those that would be available in a comparable transaction in arm’s-length dealings with an unrelated third party.
Governance
Documents
In 2022, Middleby adopted refreshed Stock Ownership Guidelines that apply to all directors and executive
officers and refreshed and made publicly available its Anti-Bribery Policy. In 2021, Middleby adopted a refreshed Code of Conduct
that applies to all directors, officers, and employees. In 2020, we adopted Corporate Governance Guidelines, which, in conjunction
with our Restated Certificate of Incorporation, as amended, Fourth Amended and Restated Bylaws and charters of the Board’s
committees, constitute the framework of our corporate governance. The Code of Conduct and Corporate Governance Guidelines, as
well as the charters for our committees, are available on our website, www. middleby.com, under “Investors—Corporate
Governance.” We will post any amendment to, or waiver from, the Code of Conduct, on our website.
We have adopted an Insider Trading Compliance Program, which governs the purchase, sale, and/or other
dispositions of the Company’s securities by our directors, officers and employees which we believe is reasonably designed
to promote compliance with insider trading laws, rules and regulations, and any listing standards applicable to the Company. A
copy of our Insider Trading Compliance Program is filed as Exhibit 19.1 to our Annual Report on Form 10-K for the year ended December
28, 2024.
The following additional documents are available on our website, www.middleby.com, under “Investors—Corporate
Governance”:
| • |
Conflict Minerals Policy |
| • |
Insider Trading Compliance Program |
| • |
2024 Sustainability Metrics Update |
| • |
2023 Sustainability Report Update |
| • |
2021 Sustainability Report |
| • |
Accounting Complaint Procedures |
| • |
Clawback Policy |
| • |
EHS Policy |
| • |
Equal Employment Opportunity Policy |
| • |
Human Rights Policy |
| • |
Supplier Code of Conduct |
Director Stock
Ownership Guidelines
Company guidelines require our non-employee directors to own a prescribed amount of Middleby common stock,
expressed as five times their annual cash compensation. Unvested time-based restricted stock units (“RSUs”) count
toward a non-employee director’s required holdings. New non-employee directors who have not yet met their stock ownership
requirements are required to meet their stock ownership requirements within five years after becoming a non-employee director.
Stock options are not counted in the ownership calculation.
As of December 28, 2024, all of our non-employee directors exceeded the minimum stock ownership requirements.
Director Compensation
The Company believes that having highly qualified non-employee directors is critical to our success.
Non-employee directors represent the interests of our stockholders, and they contribute their experience and wisdom to guide our
Company, our strategy, and our management. The Board believes that compensation for directors should reflect the work required
in both their ongoing oversight and governance role and their continuous focus on driving long-term performance and stockholder
value.
The Compensation Committee, consisting solely of independent directors, is responsible for reviewing
director compensation and considering any changes to how directors are compensated.
The full Board reviews the Compensation Committee’s recommendations and approves director compensation
arrangements.
As described in our proxy statement filed in 2024, in December 2023, the Compensation Committee engaged
Aon’s Human Capital Solutions practice, a division of Aon plc (“Aon”), an independent compensation consultant,
to conduct a director compensation assessment using the same peer group that was used to assess executive compensation. The Board
compensation assessment analyzed peer company director compensation levels and practices, evaluated the competitiveness of the
Company’s director
| 2025 PROXY
STATEMENT |
24 |
compensation program from multiple perspectives relative to the peer group, and described recent market
trends in director compensation. Based on Aon’s analysis and the Company’s long-term performance, in 2024 the Compensation
Committee implemented additional annual cash compensation for non-Chair committee members of $12,500 for Audit Committee members
and $7,500 for Compensation Committee and Nominating and Corporate Governance Committee members, and increased the aggregate value
of the annual grant of restricted stock units effective for service in 2024 from $163,000 (the rate in effect for 2023) to $175,000
in grant date value.
Non-employee director compensation for fiscal year 2024 consisted of cash and equity components. The
following table shows the compensation structure. Directors do not receive meeting fees.
| Type
of compensation |
|
How
paid |
|
Amount |
| Annual cash compensation for every non-employee director |
|
Cash, paid in quarterly installments |
|
$100,000 |
| Additional cash compensation for Chairman of the Board |
|
Cash, paid in quarterly installments |
|
$25,000 |
| Additional cash compensation for chairpersons of the Audit Committee, the Compensation
Committee and the Nominating and Corporate Governance Committee |
|
Cash, paid in quarterly installments |
|
$25,000 |
| Additional cash compensation for Audit Committee members |
|
Cash, paid in quarterly installments |
|
$12,500 |
| Additional cash compensation for Compensation Committee and Nominating and Corporate Governance
Committee members |
|
Cash, paid in quarterly installments |
|
$ 7,500 |
| Equity for every non-employee director |
|
RSUs awarded in March of each year with a one-year vesting period |
|
Aggregate value of $175,000 based on the price of Middleby’s common stock at the
close of business on the grant date |
Director Compensation
for Fiscal Year 2024
The following table shows the annual and long-term compensation for services to the Company performed
by the non-employee directors during fiscal year 2024. Mr. FitzGerald’s compensation is discussed in the Compensation
Discussion and Analysis section of this Proxy Statement and presented in “Summary Compensation Table for Fiscal Year
2024”. He did not receive any additional compensation for his service as a director.
| Name |
|
Fees
Earned or
Paid in Cash
($) |
|
Stock
Awards
($)(1) |
|
Total
($) |
Sarah
Palisi Chapin
Nominating and Corporate Governance Committee Chairperson
|
|
132,500 |
|
175,001 |
|
307,501 |
Cathy
L. McCarthy
Audit Committee Chairperson
|
|
132,500 |
|
175,001 |
|
307,501 |
John
R. Miller III(2)
Compensation Committee Chairperson
|
|
132,500 |
|
175,001 |
|
307,501 |
| Robert A.
Nerbonne |
|
107,500 |
|
175,001 |
|
282,501 |
Gordon
J. O’Brien
Chairman of the Board
|
|
135,625 |
|
175,001 |
|
310,626 |
| Stephen R.
Scherger |
|
120,000 |
|
175,001 |
|
295,001 |
| Tejas P. Shah |
|
112,500 |
|
175,001 |
|
287,501 |
| Nassem A.
Ziyad |
|
114,375 |
|
175,001 |
|
289,376 |
| (1) |
On February 26, 2024, each non-employee member of the Board was awarded RSUs having a grant date fair
value equal to $175,001 on such date pursuant to the LTIP. These RSUs vested on March 6, 2025. The amounts reported in this
column reflect the aggregate grant date fair value of the RSUs granted in 2024 computed in accordance with FASB ASC Topic
718. The valuation assumptions used in determining these amounts are described in Note 3(o) to our consolidated financial
statements included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024. As of December 28, 2024,
each non-employee director held 1,140 outstanding RSUs. |
| (2) |
On February 24, 2025, John R. Miller III notified the Board of his intent to retire from the Board. Mr. Miller retired from the Board, effective March 15, 2025. |
| 2025 PROXY
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Sustainability
In January 2025, we released
Middleby’s 2024 Sustainability Metrics Update, featuring further alignment and expansion of our data collection and
reporting of this information to our customers, investors and other stakeholders. Middleby is uniquely positioned to develop
sustainable equipment solutions that impact the many customers we touch around the world involved in restaurants and food
manufacturing operations as well as cooking at home. Our financial investments and product innovation efforts are focused on
solutions that reduce energy consumption, lessen water usage and food waste, minimize emissions and carbon footprint, and
enhance safety. We have built these sustainability objectives into our development and innovation processes, so they are core
to our culture. In our 2024 Sustainability Metrics Update, we included enhanced data with respect to energy, greenhouse gas
(GHG) emissions, water usage and waste metrics. We look forward to expanding further the metrics we disclose in our future
sustainability reporting. We intend to publish an updated Sustainability Report in 2025.
For complete information, please see our most recent Sustainability Metrics Update, which is available
on our website, www.middleby.com, under “About—Sustainability.”
Sustainability
Priorities and Management Process
Middleby’s sustainability priorities are focused on reducing environmental impact to air, water,
and land across our footprint and specifically with respect to our customers; improving data analysis and benchmarking to identify
opportunities for improvement; identifying and implementing cost-effective and innovative solutions to reduce energy usage; and
encouraging more environmentally friendly business practices within our business units. Our management process uses consistent
data collection and benchmarking to identify risks, plan management strategies, implement solutions, measure success rates, and
adjust systems for continuous improvement across our environmental management activities.
Data collection and reporting were conducted in alignment with a number of different frameworks, including
the framework used by the Sustainability Accounting Standards Board (SASB) in developing their standards. For purposes of reporting,
we selected aspects of the environment that we have control of and can make a meaningful impact on. The four key aspects measured
at our operations are Energy Consumption, Greenhouse Gas (GHG) Emissions, Water Usage and Waste Management. These aspects are
considered to meet the SASB requirements: they are of interest to investors, are relevant across the industry, have a potential
to affect corporate value, reflect stakeholder feedback, and are actionable by Middleby.
Human Capital
We believe Middleby’s success is a direct result of the people we employ around the world. When
our employees have the best environment, they can be their best. We strive to create a culture that encourages and celebrates
collaboration, creativity, and confidence. Ultimately, we want a workplace that enables employees to develop their individual
paths toward their career goals and encourages a long-term working relationship with us.
Middleby leadership encourages internal promotion to fill all job openings by supporting organized succession
planning and employee development initiatives across all of its divisions.
We encourage our employees to present new ideas and empower them to move their ideas forward. We believe
that giving our employees autonomy fosters an environment of inclusion and empowerment, and encourages them to recognize that
they play a part in Middleby’s success.
Employee Safety
Middleby actively promotes a safe workplace for all of our employees around the world because a culture
of safety reduces the risk of injury to employees, decreases expenses, and increases production. Each of our manufacturing locations
maintains an active safety committee that frequently reviews and assesses the conditions of the local work environment. We invest
in safety training, share best practices, and review claim activity to continually minimize employee workplace injuries. We understand
that our ongoing efforts to promote a safe environment today will drive long-term sustained improvement to workplace safety across
the Company in the future.
Our Recordable Case Rate (work-related injuries per 100 full-time employees) declined from 6.30 in 2017
to 5.12 in 2023. Our Lost Time Incident Rate declined from 1.37 in 2017 to 0.53 in 2023. A number of factors contribute to these
metrics and trends. Each year, the data collected includes more locations than the prior year due to acquisition activity and
expansion of locations for existing Middleby divisions. Middleby uses these metrics to inform decision-making and contribute to
the culture of safety companywide.
| 2025 PROXY
STATEMENT |
26 |
Community
Middleby recognizes the importance of supporting our industry and the communities in which we live and
work. The Middleby Cares corporate giving program invests in not-for-profit organizations addressing the following initiatives:
| • |
Food Insecurity |
| • |
Education Initiatives |
| • |
Youth Programs |
| • |
Needs for Shelter |
| • |
Basic Living Necessities |
In 2024, recipients of our cash and in-kind donations included Feeding America and many of their domestic
operations including The Greater Chicago Food Depository and the Northern Illinois Food Bank. Other beneficiaries included Ronald
McDonald House Charities (RMHC), The Red Cross Disaster Relief Fund, World Central Kitchen, Habitat for Humanity, Guy Fieri Foundation,
The Boys and Girls Clubs of America, Cafe Momentum, and culinary education support at Auburn University, Elgin Community College,
National Louis University and others. We also supported many regional organizations that met our giving parameters.
We encourage all of our global locations to be engaged in their own local charitable efforts and volunteering.
We believe in community impact, and support our employees serving their communities in a meaningful way. Our operating locations
direct their own local philanthropic activities, reflective of the needs of their communities.
| 2025 PROXY STATEMENT |
27 |
Executive Officers
The following is a summary of the professional experience of the Company’s named executive officers.
The ages set forth below are as of March 28, 2025.
| Name |
|
Age |
|
Professional
Background |
| Timothy J. FitzGerald |
|
55 |
|
Mr. FitzGerald’s professional biography appears above under Election of Directors. |
| Bryan E. Mittelman |
|
54 |
|
Chief Financial Officer of the Company since February 2019, and Chief Accounting Officer
from July 2018 to February 2019. Vice President, Controller at Knowles Corporation from December 2013 to July 2018. Corporate
Controller at Morningstar, Inc. from December 2011 to September 2013. |
| James K. Pool III |
|
53 |
|
Chief Technology and Operations Officer of the Company since February 2021. Company Group
President and President of TurboChef Technologies, LLC from 2011 to February 2021. |
| Steven P. Spittle |
|
44 |
|
Chief Commercial Officer of the Company since February 2021. Group President of Pitco Frialator
and G.S. Blodgett from March 2017 to February 2021. President of Pitco Frialator from April 2015 to May 2017. |
| Matthew R. Fuchsen |
|
54 |
|
Chief Development Officer of the Company since May 2023. Vice President, Mergers, Acquisitions
and Tax from February 2018 to May 2023. Vice President of Tax from March 2014 to February 2018. Senior Tax Manager from November
2011 to March 2014. |
| 2025 PROXY
STATEMENT |
28 |
Proposal No. 2
Advisory Vote to
Approve Executive Compensation
Every year we give our stockholders the opportunity to vote on a non-binding, advisory basis, to approve
the compensation of our Named Executive Officers. This proposal is commonly referred to as “Say on Pay.” We are asking
stockholders to vote FOR the adoption of the following resolution:
“Resolved, the compensation paid to the Company’s Named Executive Officers, as disclosed
pursuant to Item 402 of Regulation S-K of the Securities Exchange Act of 1934, including the Compensation Discussion and Analysis,
compensation tables and narrative discussion, is hereby APPROVED.”
This vote is advisory and therefore not binding on the Company, the Compensation Committee or the Board.
However, the Board and the Compensation Committee value the opinion of Middleby stockholders. The Board and the Compensation Committee
will consider the views of our stockholders expressed through the advisory vote and, based on the results of the vote, the Compensation
Committee will evaluate whether any actions are necessary to address stockholder concerns.
As outlined in the Compensation Discussion and Analysis (“CD&A”) section that follows,
our compensation program is designed to maximize achievement of strategic Company goals based on the following objectives:
| • |
attract and retain executive talent; |
| • |
link executive compensation with operating performance; |
| • |
align executive long-term compensation with stockholder interests; and |
| • |
facilitate a high-growth company strategy. |
The Compensation Committee and the Board believe that the policies and procedures articulated in the
CD&A are effective in achieving these goals and that the compensation of the Named Executive Officers reported in this Proxy
Statement has contributed to the Company’s long-term success. The Company encourages stockholders to review the executive
compensation section, executive compensation tables and pay versus performance section for details of how our executive compensation
policies and procedures operate and are designed to achieve the Company’s compensation objectives.
Vote Required
for Approval; Board Recommendation
The vote of a majority of votes cast is necessary for advisory approval of this proposal. Although this
vote is advisory in nature and does not require any action by the Company or the Compensation Committee, the Company strongly
encourages all stockholders to vote on this matter.
 |
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS
THAT STOCKHOLDERS VOTE “FOR” THE APPROVAL OF THE COMPANY’S EXECUTIVE COMPENSATION AS DISCLOSED IN THIS PROXY STATEMENT. |
| 2025 PROXY
STATEMENT |
29 |
Executive Compensation
Compensation Discussion and Analysis
The following Compensation Discussion and
Analysis (“CD&A”) describes the material elements of compensation for the Company’s fiscal year 2024 “Named
Executive Officers,” or NEOs, identified below.
| Timothy J. FitzGerald |
Chief Executive Officer |
| Bryan E. Mittelman |
Chief Financial Officer |
| James K. Pool III |
Chief Technology and Operations Officer |
| Steven P. Spittle |
Chief Commercial Officer |
| Matthew R. Fuchsen |
Chief Development Officer |
Executive Summary
We seek to closely align the interests of
our Named Executive Officers with the interests of our stockholders. As described in this CD&A, our compensation program features
a pay for performance design that rewards our Named Executive Officers for achieving short-term and long-term financial goals.
2024 Highlights and Performance
In 2024, Middleby and its management
team delivered record operating cash flows in the face of strong economic headwinds across the Company’s business
segments, and positioned the Company to achieve increasing profitability both in the short term as the macroeconomic outlook
improves as well as in the long term pursuant to our strategic plan. Achievement of our 3-year long term equity incentives
over the 2022-24 performance period reflected above target results that were adjusted downward by our 3-year TSR modifier,
resulting in long term equity incentives at below target. This demonstrates the alignment between our long term equity
incentive program and the interests of our stockholders. Likewise, annual incentive compensation for our executives for
FY2024 results was at 19% of target, reflecting below target achievement on our annual incentive program’s EBITDA$ and
EBITDA% targets.
$10,000 Compound Investment
Growth - 10 Year
| 2025 PROXY
STATEMENT |
30 |
Highlights of 2024 Compensation Program
The following chart summarizes the elements of direct compensation
paid to our Named Executive Officers in fiscal year 2024.
Compensation
element |
|
How paid |
|
Metrics and vesting |
| Base salary |
|
Cash |
|
Typically based on the Company’s current business environment, the individual’s
level of responsibility and merit within the Company, and peer reference data. |
| Annual incentive compensation |
|
Cash |
|
The annual incentive compensation program is a performance-based plan that rewards performance
against goals for earnings before interest, taxes, depreciation, and amortization (“EBITDA”) in dollars (“EBITDA$”),
and EBITDA as a percentage of total revenue (“EBITDA%”). |
| Long-term
equity incentives |
|
2/3 performance-based performance stock units (PSUs) |
|
The 2024
awards of PSUs will cliff vest, to the extent earned, at the end of a three-year performance period based on continued
employment and performance against goals for Enterprise Value Growth (Less Net Debt) per share (50%) and Adjusted EPS
Growth (50%). Final awards may be modified (+/- 30%) based on Middleby’s TSR compared to TSR for our peer
group. |
| |
|
1/3 time-based restricted stock units (RSUs) |
|
The RSUs will vest in three equal tranches in the March following each of the three fiscal
years of the performance period for the PSUs awarded on the same date, subject to continued employment. Shares underlying
the vested RSUs must be held until the end of the three fiscal year period to which they relate. |
Stockholder Engagement Following the 2024
Annual Meeting
We actively seek and consider stockholder
feedback in designing and managing our executive compensation program, our corporate governance practices, and all other matters
of interest to our stockholders. At the 2024 Annual Meeting, support for the Say on Pay proposal was approximately 87%. This level
of support affirms our stockholders’ overall support for our compensation practices. After considering the outcome of the
advisory vote, the Compensation Committee made no significant changes to the 2024 executive compensation program but intends to
modify our 2025 executive compensation program to reflect stockholder feedback regarding performance metrics as well as feedback
from Company management and Aon, our independent compensation consultant. Specifically, the Compensation Committee intends that
the 2025 long-term equity incentive program will include Adjusted EPS Growth, Return on Invested Capital (ROIC), and TSR performance metrics.
In 2024, stockholder feedback continued
to be valuable to the Company. This year, we proactively engaged with our stockholders regarding executive compensation and other
corporate governance matters throughout the year, as discussed further in “Governance—Stockholder Engagement.”
Compensation Objectives and Philosophy
The Company’s compensation and benefits
programs are influenced by our business culture and are designed to maximize strategic Company goals. The objectives of our compensation
program are described below.
Attract
and Retain Executive Talent—The Company offers compensation packages that aim to
attract and retain qualified executive talent and deliver increasing rewards for extraordinary performance.
Link Executive
Compensation with Financial and Operating Performance—The Compensation Committee structures a portion of the
compensation for our Named Executive Officers and senior management to vary based on the Company’s financial and operating
performance in order to drive a sustained increase in stockholder value. In a typical year, a significant portion of an executive’s
annual compensation is at risk and linked to the achievement of corporate goals that are tailored to the Company’s strategic
plan.
Link Executive
Equity Incentive Compensation with Stockholder Interests—Long-term equity incentive compensation granted to our
Named Executive Officers in fiscal year 2024 was divided between performance-based (67%) and time-based restricted stock units
(33%) (assuming target performance levels for the PSUs) to (i) align our Named Executive Officers’ interests with stockholder
interests through the shared experience of stock ownership; (ii) tie performance goals and payouts directly to metrics that are
critical drivers of financial and operational success, stockholder value creation, and strategic objectives; (iii) enhance the
alignment between Company performance and executive pay by weighing the performance-based portion of LTI more heavily than time-based
vesting, and (iv) include a time-based component that encourages executive retention and discourages excess risk-taking by executives.
Facilitate
a High-Growth Company Strategy—The Company provides incentive compensation that rewards executives for strong
growth in earnings, which is expected to generate strong stockholder return. Performance goals are generally consistent with the
Company’s performance expectations, but are tiered to help ensure that awards will increase when Middleby out-performs its
performance targets. Likewise, our incentive compensation programs are designed to result in no payouts when Middleby underperforms
threshold goals.
| 2025 PROXY
STATEMENT |
31 |
Parties Involved in Compensation Decisions
Role of the Compensation Committee
The Compensation Committee, consisting entirely
of independent directors, is responsible for establishing, implementing, and monitoring the Company’s compensation program
and providing input to the Board with respect to management development and succession planning.
The Compensation Committee evaluates the
CEO’s performance and makes recommendations to the Board with respect to the CEO’s compensation based on this evaluation.
The Compensation Committee also evaluates the other Named Executive Officers’ performance and, either as a committee or
together with the other independent directors (as directed by the Board), determines and approves their compensation.
Role of the Compensation Committee’s
Independent Compensation Consultant
The Compensation Committee has the power
to retain independent compensation consultants, legal counsel, or other advisors as it may deem appropriate to assist it in the
performance of its duties and responsibilities, without consulting or obtaining the approval of management. The Compensation Committee
recognizes the importance of objective, independent expertise and advice in carrying out its responsibilities.
Since November 2017, the Compensation Committee
has retained Aon’s Human Capital Solutions practice, a division of Aon plc (“Aon”), as its independent consultant.
Aon reports directly to, and is directly accountable to, the Compensation Committee, and the Compensation Committee has the sole
authority to retain, terminate, and obtain Aon’s advice at the Company’s expense. The Compensation Committee selected
Aon as consultants because of Aon’s public company compensation experience, understanding of compensation governance and
access to market competitive data.
With Aon’s assistance, the Compensation
Committee monitors market compensation practices and developments, as well as the appropriateness of the various components of
Middleby’s executive pay program. The Compensation Committee believes that obtaining relevant market and benchmark data
is very important because it provides helpful context and a solid reference point for making decisions. When making determinations
about compensation for our executives, the Compensation Committee also considers corporate and individual performance, any shifts
in the current or anticipated future duties and function of the executive officers, the competitive market for executive talent
and the overall labor market, and the input of other directors who are not members of the Compensation Committee.
In the past, the Compensation Committee
has worked with Aon to: assess our executive compensation philosophy, objectives and components; develop a peer group of companies
for compensation comparison purposes; review considerations and market practices related to the design of cash and equity incentive
plans and trends in the capital goods industry; review our equity compensation strategy; and review director compensation market
practices. For fiscal year 2024 specifically, Aon assisted the Compensation Committee with evaluating the appropriateness of the
peer group for alignment with the Company’s strategy and business mix, providing CEO and NEO benchmark compensation data,
designing our incentive plans, assessing the competitiveness of Board of Director compensation, and understanding developing compensation
and governance trends. While the Compensation Committee takes into consideration the review and recommendations of Aon when making
decisions about the Company’s executive compensation program, ultimately the Compensation Committee makes its own independent
decisions about compensation matters.
The Compensation Committee has assessed
the independence of Aon pursuant to SEC and NASDAQ rules, considering each of the relevant factors with respect to a compensation
consultant’s independence. The Compensation Committee also considered the nature and amount of work performed for the Compensation
Committee and the fees paid for those services in relation to Aon’s total revenues. Aon provides no services to the Company
other than its services to the Compensation Committee, has no other ties to management that could jeopardize its fully independent
status, and has strong internal governance policies that help ensure it maintains its independence. Aon has conducted a review
of its performance, and has prepared an independence letter for the Compensation Committee that provides assurances and confirmation
of the consultant’s independent status under the standards. None of the Compensation Committee members and none of our executive
officers or directors have any personal relationship or other conflicts of interest with Aon.
Role of the CEO
The CEO annually reviews the performance
of each executive officer other than himself. For each such executive, this review includes an analysis of actual operating performance
versus pre-determined operating performance targets, measures taken to improve efficiency of operations within the executive’s
area of responsibility, completion of special projects, and an assessment of the executive’s commitment to the Company’s
core operating principles. Based on his review, the CEO develops a recommendation to the Compensation Committee for each executive’s
annual base salary, annual incentive plan opportunity and the basis for long-term equity-based grants.
The Compensation Committee uses the same methodology to establish
the compensation package for the CEO.
Market Factors in Setting Compensation
The Compensation Committee uses comparative
compensation information from a relevant group of peer companies as one of several points of reference when setting the compensation
of our CEO and other NEOs. The Compensation Committee considers data from the companies in the peer group to compare total compensation
and individual compensation elements for our CEO and other NEOs with compensation for officers in comparable positions. The Compensation
Committee retains discretion in determining how it will use peer group data. The Committee typically reviews peer company compensation
data on an annual basis.
| 2025 PROXY
STATEMENT |
32 |
In the fourth quarter of 2023, with
Aon’s assistance, the Compensation Committee updated the peer group used to benchmark compensation levels and practices
to more closely align with the Company’s profile and growth. In updating the peer group, the Committee considered the
following criteria: revenue, market capitalization, EBITDA, industry, brand leadership, and international scope. Based on an
assessment of the peer group by the Compensation Committee in light of the factors noted above, the Committee determined it
would be appropriate to add the following companies to the 2024 peer group (“Peer Group”): Dover Corporation and
Regal Rexnord Corporation. The 2024 Peer Group is summarized below:
| AMETEK, Inc. |
John Bean Technologies Corporation |
| Carlisle Companies Incorporated |
Lincoln Electric Holdings, Inc. |
| Crane Co. |
Nordson Corporation |
| Dover Corporation |
Pentair plc |
| Flowserve Corporation |
Regal Rexnord Corporation |
| Graco Inc. |
Rockwell Automation, Inc. |
| Helen of Troy Limited |
Snap-on Incorporated |
| Hubbell Incorporated |
The Timken Company |
| IDEX Corporation |
Woodward, Inc. |
| Ingersoll Rand Inc. |
Xylem Inc. |
| ITT Inc. |
|
At the time the Peer Group was updated in 2023, Middleby was
positioned slightly below the median based on trailing twelve months EBITDA and slightly below the median based on revenue.
For fiscal year 2024 compensation purposes,
Aon presented the Compensation Committee with data regarding compensation for the NEOs. Aon collected this information from the
Peer Group.
Aon compiled compensation data at the 25th
percentile, median, and 75th percentile levels from the Peer Group, for base salaries, target annual cash incentive
awards, target long-term equity awards, and total target direct compensation for individual executive officer positions. Using
this data, the Compensation Committee approved adjustments to 2024 compensation packages for our NEOs to maintain an appropriate
level of total compensation in comparison to the market that is consistent with emphasizing pay for performance.
Fiscal Year 2024 Compensation Decisions
The Company’s compensation
program is generally divided into three elements: base salary, annual cash incentive, and long-term equity-based incentive.
We use the mix of these elements to emphasize pay for performance and to recognize the different value brought by individual
jobs within the Company. For example, our CEO has the greatest responsibility for the operation and performance of the
business and, accordingly, the most potential upside in compensation, but he also has the most compensation at risk,
depending on Middleby’s financial performance.
Base Salary
Base salary is fixed and provides some stable
income since the other elements of our NEOs’ compensation packages are at significant risk. Annual base salary levels and
any increases are budgeted based on the Company’s current business environment and the individual’s level of responsibility
and merit within the Company.
| 2025 PROXY
STATEMENT |
33 |
The base salary of our CEO, Mr. FitzGerald,
has remained unchanged since his promotion to CEO in February 2019. For fiscal year 2024, the Compensation Committee approved
increases to base salaries of our other NEOs in alignment with market compensation data provided by Aon. Among other factors,
the Compensation Committee also recognized additional duties and responsibilities for each position, the importance of retaining
key executive talent and the status of the labor market generally.
| Named Executive Officer |
2023 Base
Salary |
|
2024 Base
Salary |
|
Percentage
Change |
| Timothy J. FitzGerald (CEO) |
$975,000 |
|
$975,000 |
|
0% |
| Bryan E. Mittelman (CFO) |
$525,000 |
|
$550,000 |
|
4.76% |
| James K. Pool III (Chief Technology and Operations Officer) |
$575,000 |
|
$600,000 |
|
4.35% |
| Steven P. Spittle (Chief Commercial Officer) |
$575,000 |
|
$600,000 |
|
4.35% |
| Matthew R. Fuchsen (Chief Development Officer) |
$400,000 |
|
$420,000 |
|
5.00% |
Annual Performance-Based Incentive Program
The Company provides annual performance-based
cash incentives pursuant to the Value Creation Incentive Plan (“VCIP”). Under the VCIP, the Compensation Committee
can establish performance goals utilizing multiple metrics, with the flexibility to adjust metrics and goals to address changing
business needs. The VCIP is intended to provide an incentive for strong performance and to motivate eligible employees toward
the highest level of achievement and business results by tying their goals and interests to those of the Company and our stockholders.
In fiscal year 2024, the Compensation Committee
approved and implemented an annual cash-based incentive compensation program under the VCIP for all of the NEOs. The annual incentive
compensation program for 2024 includes bonus opportunities based upon performance against goals for EBITDA$ and EBITDA% for fiscal
year 2024. These metrics, which emphasize different aspects of our performance than the metrics used for the long-term incentive
plan, were implemented in part due to prior stockholder outreach, are consistent with leading governance practices, and serve
as an effective reference for senior managers when making decisions for their respective operations. The Compensation Committee
retains discretion regarding the determination of achievement of the performance metrics.
The following table shows 2024 actual EBITDA$
and EBITDA% as compared to the target EBITDA$ and EBITDA% goals and the corresponding annual performance-based cash compensation
for each NEO under the VCIP. Each NEO’s target bonus opportunity under the VCIP for fiscal year 2024 was set at 100% of
base salary and a maximum of 200% of base salary, as set forth below:
2024 ANNUAL PERFORMANCE-BASED CASH INCENTIVE
PLAN PERFORMANCE
| Performance Metric |
|
Relative
Weighting |
|
Threshold |
|
Target |
|
Target+ |
|
Maximum |
|
Reported
Result |
|
Adjusted
Result |
|
Annual
Performance-
Based Cash
Compensation* |
| EBITDA $ (in millions)** |
|
65% |
|
$ 925 |
|
$ 942 |
|
$ 958 |
|
$ 975 |
|
$ 866 |
|
$ 865 |
|
|
| Percentage of Base Salary |
|
|
|
33% |
|
65% |
|
98% |
|
130% |
|
|
|
|
|
0% |
| EBITDA %** |
|
35% |
|
22.3% |
|
22.5% |
|
22.7% |
|
23.0% |
|
22.4% |
|
22.3% |
|
|
| Percentage of Base Salary |
|
|
|
18% |
|
35% |
|
53% |
|
70% |
|
|
|
|
|
19.2% |
| * |
When applicable, EBITDA$ and EBITDA% Annual
Performance-Based Cash Compensation is calculated based upon the percentage of base salary at the adjusted result,
calculated on a linear basis between the performance targets. |
| ** |
EBITDA $ and EBITDA % are not prepared in
accordance with GAAP. For a reconciliation of EBITDA $ to the most directly comparable GAAP financial measure and insight into
how these non-GAAP measures are considered by management, please see Annex A, where EBITDA $ is referred to as Adjusted
EBITDA. EBITDA % is calculated as EBITDA $ divided by GAAP revenue. |
| 2025 PROXY
STATEMENT |
34 |
For fiscal year 2024, the Compensation Committee
determined that the EBITDA$ and EBITDA% performance metrics had results as set forth in the table above. Results were evaluated
based on an as reported basis in US dollars. The Compensation Committee determined the EBITDA$ achieved amounted to $866.3 million
and the EBITDA% performance amounted to 22.4%. The Compensation Committee exercised discretion to adjust achievement of the performance
metrics by taking into account the effects of certain non-recurring expenses. After adjustment taking into account these factors,
the Compensation Committee approved the EBITDA$ and EBITDA% performance metrics as adjusted in the table above, resulting in annual
performance-based cash compensation to the NEOs for the EBITDA$ performance metric at 0% of base salary and for the EBITDA%
performance metric at 19.2% of base salary. Absent such adjustments, the annual performance-based cash compensation for the NEOs
for performance during fiscal year 2024 would have been as follows: Mr. FitzGerald $217,603, Mr. Mittelman $122,750, Mr. Pool
III $133,909, Mr. Spittle $133,909, and Mr. Fuchsen $93,737.
| Named Executive Officer | |
Annual Performance-Based
Cash Compensation for 2024 | |
| Timothy J. FitzGerald (CEO) | |
$ | 186,781 | |
| Bryan E. Mittelman (CFO) | |
$ | 105,364 | |
| James K. Pool III (Chief Technology and Operations Officer) | |
$ | 114,942 | |
| Steven P. Spittle (Chief Commercial Officer) | |
$ | 114,942 | |
| Matthew R. Fuchsen (Chief Development Officer) | |
$ | 80,460 | |
For 2024, the annual-performance based cash
compensation earned by the NEOs at 19% of target demonstrates the alignment of the Company’s annual incentive compensation
with the Company’s short-term performance and the interests of the Company’s shareholders.
Equity-Based Incentive Compensation
We believe that our LTI structure is consistent
with leading governance practices, serves as an effective reference for senior managers when making decisions for their respective
operations, and further aligns management with stockholder interests.
The LTI award granted to the NEOs in fiscal
year 2024 contained all of the features of the current LTI program described above and summarized below.
| Component |
|
Current LTI Practices |
| Award Type |
|
Performance-based PSUs (2/3 weight)
Time-based RSUs (1/3 weight) |
| Award Timing |
|
LTI awards made annually |
| Term |
|
Three years |
| Performance and Vesting
Period |
|
Time-based awards: ratable over three years, but shares must be held until the end of the three fiscal year period to
which they relate
Performance-based awards: cliff vest to the extent earned, at the end of the three-year performance period |
| Performance Criteria |
|
Adjusted EPS Growth (50% weight)
Enterprise Value Growth, (Less Net Debt) per share (50% weight) |
| TSR Modifier |
|
•
Vested performance
shares increase by 30% for three-year TSR performance that is at or above the 75th percentile versus the Peer
Group
•
Vested performance
shares are unchanged for three-year TSR performance that is between the 25th and 75th percentile versus
Peer Group
•
Vested performance
shares decrease by 30% for three-year TSR performance that is at or below the 25th percentile versus the Peer Group
|
2024 Long-Term Equity Incentive Awards
In May 2024, the Compensation Committee approved LTI equity
awards to our Named Executive Officers consisting of performance-based PSUs (66.7% of target LTI value) and time-based RSUs
(33.3% of target LTI value). The performance period for the performance-based PSUs covers fiscal years 2024, 2025 and 2026,
and vesting, if any, will be approved by the Compensation Committee in the first quarter of fiscal year 2027. The time-based
RSUs will vest, subject to the NEO’s continued employment, in equal increments, in March 2025, March 2026 and March
2027. The shares underlying the time-based RSUs must be held until the end of the three fiscal year period to which they
relate. All future performance-based equity grants made during our annual grant cycle are currently expected also to have a
three-year performance and vesting period.
The Compensation Committee sets the grant date target value for
LTI awards for our Named Executive Officers other than the CEO. Using market-based long-term equity grant values and incentive
plan design information provided by the Compensation Committee’s independent compensation consultants as a guide, Mr. FitzGerald
recommends to the Compensation Committee awards for our Named Executive Officers (other than himself) and members of senior management.
| 2025 PROXY
STATEMENT |
35 |
The Board established Mr. FitzGerald’s target LTI award
based upon the recommendations of the Compensation Committee. In forming its recommendation, the Compensation Committee reviewed competitive compensation data for the Peer
Group provided by Aon and considered other relevant factors.
Target LTI awards for our Named Executive Officers are shown
below.
| Executive | |
Grant date
target value of
award*
($) | | |
Target
performance-
based
PSUs
(#) | |
Target
time-based
RSUs
(#) |
| Timothy
J. FitzGerald | |
$ | 6,350,002 | | |
30,898 | |
15,449 |
| Bryan E. Mittelman | |
$ | 1,900,055 | | |
9,246 | |
4,622 |
| James K. Pool
III | |
$ | 2,600,039 | | |
12,652 | |
6,325 |
| Steven P. Spittle | |
$ | 2,600,039 | | |
12,652 | |
6,325 |
| Matthew R.
Fuchsen | |
$ | 1,425,041 | | |
6,934 | |
3,467 |
| * |
The Compensation Committee determined the number of PSUs
and RSUs to grant based on the price of Middleby common stock on May 14, 2024, which was $137.01 per share. |
Performance Targets for 2024 LTI Awards
The performance-based PSUs have two primary,
equally weighted, metrics: Adjusted EPS Growth and Enterprise Value Growth (Less Net Debt) per share.
| Metric |
|
Definition |
|
Rationale |
| Adjusted EPS Growth
|
|
Net Earnings plus the following: amortization, restructuring expenses, acquisition-related inventory
step-up charges, facility consolidation expense, net periodic pension benefit other than service costs, one-time restructuring
costs, and income tax effect of pre-tax adjustments, with the result divided by shares outstanding. |
|
This is an easily understood metric that is reported in Middleby’s earnings releases, that
closely aligns with stockholder growth expectations, and that is closely aligned with the valuation of the Company.
|
| Enterprise Value Growth
(Less Net Debt) Per Share |
|
Adjusted EBITDA multiplied by a market multiple minus Net Debt, with the result divided by shares
outstanding. |
|
This metric closely aligns to stockholder value creation by comprehensively capturing growth and
capital efficiency, and incorporating cash flow generation, fluctuation in debt balances, utilization of equity, and changes
to total shares outstanding. |
Performance targets are set based on management’s
multi-year forecast of Adjusted EPS Growth and Enterprise Value Growth (Less Net Debt) per share performance. The maximum possible
payout is 200% of target, based on our performance against goals for these measures. We disclose the targets for Adjusted EPS
Growth and Enterprise Value Growth (Less Net Debt) per share retrospectively due to the competitive harm that could result from
disclosing these targets prospectively. However, consistent with stockholder feedback, the performance targets for the performance period
that spans fiscal years 2024, 2025 and 2026 reflect rigorous goals that anticipate much stronger growth than we experienced in
prior fiscal years because of the negative impact of the pandemic and to continue to drive improvements in financial performance.
The Compensation Committee retains discretion regarding the determination of achievement of the performance metrics.
Once awards are calculated based on
Middleby’s performance for the three-year performance period (“Pre-TSR Vested Shares”), the Compensation
Committee will calculate whether the TSR modifier applies. If Middleby’s TSR for the three-year performance period is
at or above the 75th percentile versus the Peer Group, the final grants to our Named Executive Officers will equal
the number of Pre-TSR Vested Shares multiplied by 130%. Conversely, if Middleby’s TSR for the three-year performance
period is at or below the 25th percentile versus the Peer Group, the final grants to our Named Executive Officers
will equal the number of Pre-TSR Vested Shares multiplied by 70% (meaning that there is a negative adjustment of 30%). Final
awards will equal the number Pre-TSR Vested Shares if Middleby’s TSR for the three year performance period falls
between the 25th and 75th percentiles versus the Peer Group.
Time-Based RSUs; Holding Period
The time-based LTI awards vest ratably over
three years, so long as the recipient is still employed by the Company. However, the shares underlying the vested RSUs may not
be sold or otherwise transferred until the associated performance-based PSUs vest (or fail to vest based on performance). The
TSR modifier will not affect the number of time-based RSUs that vest.
Vesting of Equity Incentive Awards for 2022-2024
Performance Period
On May 15, 2022, the Company granted performance-based
PSU and time-based RSU awards to the NEOs. The performance-based component of the award provided that a portion of the award,
up to the maximum number of shares subject to the award, would be earned at the end of a three-year performance period based on
the achievement of a multi-year forecast in Adjusted EPS Growth and Enterprise Value Growth (Less Net Debt) per share (as certified
by the Compensation Committee in early 2025). The three-year
| 2025 PROXY
STATEMENT |
36 |
performance period for these awards began
on January 1, 2022 and ended on December 28, 2024. The time-based RSU component vested in 1/3 increments on each of March 1, 2023,
March 1, 2024 and March 1, 2025, subject to continued employment on each such date.
Three-Year Performance Period for 2022-2024
The aggregate maximum number of
performance-based PSUs that were eligible to vest over the three-year performance period ended December 28, 2024 (after
including the +-30% TSR modifier) equaled 76,290 for Mr. FitzGerald, 19,848 for Mr. Mittelman, 24,810 for Mr. Pool, 24,810
for Mr. Spittle, and 14,733 for Mr. Fuchsen. The performance criteria for the Adjusted EPS Growth and Enterprise Value Growth
(Less Net Debt) per share performance metrics is the growth achieved over the base year as compared to the average of the
results for each year in the performance period. The following chart illustrates the percentage of awarded PSUs that were
eligible to vest at various levels of Adjusted EPS Growth and Enterprise Value Growth (Less Net Debt) per share achievement
over the three-year performance period ending December 28, 2024 prior to adjustment pursuant to the +-30% TSR modifier:
| |
|
3 Year Enterprise Value Growth (Less Net Debt)
per share |
| 3 Year Adjusted
EPS Growth |
|
15%
(threshold) |
|
25%
(target) |
|
45%
(max) |
| 12.5% (threshold) |
|
50% |
|
75% |
|
150% |
| 20% (target) |
|
75% |
|
100% |
|
150% |
| 35% (max) |
|
150% |
|
150% |
|
200% |
For the three-year performance period ended
December 28, 2024 the Compensation Committee determined that the Adjusted EPS Growth and Enterprise Value Growth, (Less Net Debt)
Per Share performance metrics were 24% and 29%, respectively, and that the TSR performance metric was below the 25th percentile,
resulting in a negative adjustment of 30%. Accordingly, the Compensation Committee approved vesting of the Adjusted EPS Growth
PSUs for the 2022-24 performance period at 89% of target (also reflecting the downward adjustment pursuant to the +-30% TSR modifier), and vesting of the Enterprise Value Growth, (Less Net Debt) Per Share
PSUs for the 2022-24 performance period at 84% of target (also reflecting the downward adjustment pursuant to the +-30% TSR modifier). Shares vested for each NEO as set forth in the chart below.
| Named Executive
Officer |
|
Vested
Performance-Based PSUs |
| Timothy J. FitzGerald (CEO) |
|
25,407 |
| Bryan E. Mittelman (CFO) |
|
6,610 |
| James K. Pool III (Chief Technology and Operations Officer) |
|
8,263 |
| Steven P. Spittle (Chief Commercial Officer) |
|
8,263 |
| Matthew R. Fuchsen (Chief Development Officer) |
|
4,907 |
For the 2022-24 performance period, the
long-term equity incentives earned by the NEOs at approximately 87% of target demonstrates the alignment of the Company’s
long term incentive program with the Company’s long-term performance and achievement of the Company’s strategic plan
in the interests of the Company’s shareholders.
The number of shares of time-based RSUs
that were awarded to the NEOs on May 15, 2022 totaled 14,671 shares to Mr. FitzGerald, 3,817 shares to Mr. Mittelman, 4,771
shares to Mr. Pool, 4,771 shares to Mr. Spittle, and 2,834 shares to Mr. Fuchsen. 1/3 of these awards vested on March
1, 2025.
Stock Ownership Guidelines
Company guidelines require our Named Executive
Officers to own a prescribed amount of Middleby common stock, expressed as a multiple of their respective base salaries. The base
salary multiples are set by the Compensation Committee at levels consistent with the individual’s level of responsibility
within the Company. Unvested time-based RSUs count toward an executive’s required holdings, but unvested performance-based
equity does not. Any covered executives who have not yet met their stock ownership requirements are required to retain 50% of
all net shares (post tax) that vest until the minimum share ownership requirement is achieved. Stock options are not counted in
the ownership calculation.
As of December 31, 2024, all of our Named
Executive Officers exceeded the minimum stock ownership requirements, as shown below.
| 2025 PROXY
STATEMENT |
37 |
Clawback Policy
The Company maintains a Clawback Policy,
which requires reimbursement or forfeiture of all or a portion of any incentive compensation (which includes annual bonuses and
other short-and long-term cash incentives, stock options, stock appreciation rights, restricted stock, restricted stock units,
performance shares and performance units) received by a current or former executive officer during the preceding three completed
fiscal years in the event that:
| (a) |
the Company is required to prepare an accounting restatement
of its financial statements due to material noncompliance with any financial reporting requirement under securities law, and |
| (b) |
the restated result indicates that an executive officer received additional
incentive compensation based on the erroneous data. |
The Company is entitled to recover the amount
of excess incentive compensation paid to any executive officer over the incentive compensation that would have been paid to the
executive officer had it been based on the restated results, as determined by the Board. The Clawback Policy is intended to comply
with Exchange Act Rule 10D-1 and the NASDAQ listing standards regarding recovery of erroneously awarded compensation in the event
of an accounting restatement.
Additional Compensation Information
Derivatives Trading, Hedging and Pledging
Pursuant to our Insider Trading Compliance
Program, all employees, officers, and directors are prohibited from engaging in any speculative transactions in Middleby stock,
including engaging in short sales; transactions involving put options, call options, or other derivative securities; or any other
forms of hedging transaction, such as collars or forward sale contracts, designed to decrease the risks associated with holding
Middleby stock, except in certain circumstances that must be pre-cleared with the Company’s insider trading compliance officers.
Post-Employment Benefits
The Company provides certain limited post-employment
benefits, as described under “Potential Payments Upon Termination or Change in Control.”
Limited Perquisites 401(k) Plan
Our Named Executive Officers and senior
executives receive only limited perquisites. Middleby does not offer our NEOs automobile allowances, club memberships, or other
professional fee reimbursements.
We maintain a 401(k) retirement savings
plan for our employees in the United States, including our Named Executive Officers. Our Named Executive Officers are eligible
to participate in the 401(k) plan on the same terms as other full-time employees. Our Named Executive Officers do not participate
in any other Company retirement plans.
Employment Agreements
To attract and retain highly skilled executives
and to provide for certainty regarding rights and obligations, the Company has historically provided employment agreements to
our Chief Executive Officer and certain other executive officers. None of the NEOs other than Mr. FitzGerald have an employment
agreement with the Company. For more information, see “Employment Agreements with Named Executive Officers.”
Risk Assessment Regarding Company Compensation
Program
The Compensation Committee is committed
to ensuring that none of Middleby’s compensation policies and practices—particularly the performance-based compensation—pose
excessive risks. The Compensation Committee, together with the Chairperson of the Audit Committee and executive management, has
considered the risks arising from the Company’s compensation policies and practices and concluded that those policies and
practices are not reasonably likely to have a material adverse effect on the Company. In particular, the Compensation Committee
determined that Middleby’s executive compensation program includes several “risk mitigating” elements, such
as a Clawback Policy, stock ownership requirements for our NEOs and other senior executives, substantial time-based components
in the total compensation mix, the use of multiple performance metrics in our incentive plans, and limitations on the payouts
that can be earned through the incentive plans.
Equity Grant Practices
Although we do not have a formal policy
regarding the timing of equity award grants, we generally grant annual equity awards to our Named Executive Officers on a pre-established
date and we do not grant any form of equity compensation in anticipation of the release of material, non-public information. Similarly,
we do not time the release of material, non-public information based on equity award grant dates for the purpose of affecting
the value of any equity award. The Compensation Committee also does not take material, non-public information into account when
determining the timing and terms of equity award grants, provided that, if material, non-public information becomes known to the
Compensation Committee prior to granting an equity award, the Compensation Committee takes the existence of such information into
consideration and uses its business judgment to determine whether to delay the grant of equity to avoid any impropriety. During
fiscal 2024, we did not grant any options to our employees.
Tax and Accounting Considerations
Deductibility of Executive Compensation
Section 162(m) of the Internal Revenue Code
generally imposes a $1 million cap on the federal income tax deduction for compensation paid to our “covered employees”
during any fiscal year. While the Compensation Committee considers the deductibility of awards as one factor in determining Named
Executive Officer compensation, the Compensation Committee also looks at other factors in making its decisions, and, in the exercise
of its business judgment and in accordance with its compensation philosophy, the Compensation Committee retains the flexibility
to award compensation even if the compensation is not deductible by us for tax purposes, and to modify compensation that was initially
intended to be tax deductible if it determines such modifications are consistent with our business needs.
Accounting for Stock-Based Compensation
The Compensation Committee takes accounting
considerations into account in designing compensation plans and arrangements for our Named Executive Officers and other employees.
We follow Financial Accounting Standard Board Accounting Standards Codification Topic 718 (FASB ASC Topic 718) for our stock-based
compensation awards. FASB ASC Topic 718 requires us to measure the compensation expense for all share-based payment awards based
on the grant date “fair value” of these awards.
| 2025 PROXY
STATEMENT |
38 |
Report of the Compensation
Committee of the Board of Directors
The Compensation Committee, consisting entirely
of independent directors, reviewed and discussed the above Compensation Discussion and Analysis with the Company’s management.
Based on this review and discussion, the Compensation Committee has recommended to the Company’s Board that the CD&A
be included in these proxy materials and in Middleby’s Annual Report on Form 10-K for the year ended December 28, 2024.
The
Compensation Committee:
Stephen R. Scherger, Chairman,
Edward P. Garden and Gordon J. O’Brien
| 2025 PROXY
STATEMENT |
39 |
Executive Compensation Tables
Summary Compensation Table for Fiscal Year
2024
The following table sets forth information concerning the annual
and long-term compensation for services to the Company in all capacities received by the following individuals, who are collectively
referred to as the Company’s “Named Executive Officers” for fiscal year 2024: the Chief Executive Officer, the
Chief Financial Officer, and the three other most highly compensated executive officers. The table covers compensation for fiscal
years 2022, 2023 and 2024 to the extent the individuals listed were Named Executive Officers in those years.
Name
and
Principal Position |
|
Fiscal
Year |
|
Salary
($) |
|
Bonus
($) |
|
Stock
Awards
($)(1) |
|
Option
Awards
($) |
|
Non-Equity
Incentive Plan
Compensation
($) |
|
All
Other
Compensation
($) |
|
Total
($) |
Timothy J. FitzGerald
Chief Executive Officer |
|
2024 |
|
975,000 |
|
|
|
6,343,205 |
|
|
|
186,781 |
|
20,495 |
(2) |
7,525,481 |
| |
2023 |
|
975,000 |
|
|
|
6,140,784 |
|
|
|
1,300,650 |
|
18,445 |
|
8,434,879 |
| |
2022 |
|
975,000 |
|
— |
|
6,465,950 |
|
— |
|
1,944,150 |
|
16,945 |
|
9,402,045 |
Bryan E. Mittelman
Chief Financial Officer |
|
2024 |
|
550,000 |
|
|
|
1,898,021 |
|
|
|
105,364 |
|
14,088 |
(3) |
2,567,473 |
| |
2023 |
|
525,000 |
|
|
|
1,747,367 |
|
|
|
700,350 |
|
13,580 |
|
2,986,297 |
| |
2022 |
|
500,000 |
|
— |
|
1,682,266 |
|
— |
|
997,000 |
|
12,041 |
|
3,191,307 |
James K. Pool III
Chief Technology and Operations Officer |
|
2024 |
|
600,000 |
|
|
|
2,597,255 |
|
|
|
114,942 |
|
9,195 |
(4) |
3,321,392 |
| |
2023 |
|
575,000 |
|
|
|
2,396,342 |
|
|
|
767,050 |
|
8,945 |
|
3,747,337 |
| |
2022 |
|
550,000 |
|
— |
|
2,102,723 |
|
— |
|
1,096,700 |
|
8,666 |
|
3,758,089 |
Steven P. Spittle
Chief Commercial Officer |
|
2024 |
|
600,000 |
|
|
|
2,597,255 |
|
|
|
114,942 |
|
13,775 |
(5) |
3,325,972 |
| |
2023 |
|
575,000 |
|
|
|
2,396,342 |
|
|
|
767,050 |
|
13,525 |
|
3,751,917 |
| |
2022 |
|
550,000 |
|
— |
|
2,102,723 |
|
— |
|
1,096,700 |
|
12,525 |
|
3,761,948 |
Matthew R. Fuchsen
Chief Development Officer |
|
2024 |
|
420,000 |
|
|
|
1,423,516 |
|
|
|
80,460 |
|
12,118 |
(6) |
1,936,094 |
| |
2023 |
|
400,000 |
|
— |
|
1,360,305 |
|
— |
|
533,600 |
|
16,627 |
|
2,310,532 |
| (1) |
The amounts reported in the “Stock Awards” column of the table reflect the fair value on the grant date of equity awards granted to our NEOs determined in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 718, excluding the effect of estimated forfeitures. For time-based RSUs, fair value is computed by multiplying the total number of shares subject to the award (or target number of shares, if applicable) by the closing price per share of our common stock as reported on the date of grant. For the PSUs, fair value has been calculated based on the probable outcome of the applicable performance conditions and a Monte Carlo simulation valuation model. The closing trading value of our common stock was $137.01 per share on May 14, 2024. The fair value on the grant date of the PSUs granted to our NEOs during 2024 based upon the maximum possible level of achievement under such awards would be $10,988,997 for Mr. FitzGerald, $3,288,377 for Mr. Mittelman, $4,499,734 for Mr. Pool, $4,499,734 for Mr. Spittle, and $2,466,105 for Mr. Fuchsen. Refer to the footnotes to the Grants of Plan-Based Awards table for the assumptions made when calculating the grant date fair values of the fiscal year 2024 grants of RSUs and PSUs. |
| (2) |
All other compensation amounts in 2024 for Mr. FitzGerald include a $1,375 Company contribution to a health savings account, $3,870 in Company-paid life insurance premiums, and a 401(k) Company matching contribution of $15,250. |
| (3) |
All other compensation amounts in 2024 for Mr. Mittelman include a $1,375 Company contribution to a health savings account, $2,070 in Company-paid life insurance premiums, and a 401(k) Company matching contribution of $10,642. |
| (4) |
All other compensation amounts in 2024 for Mr. Pool may include a $1,375 Company contribution to a health savings account, $2,070 in Company-paid life insurance premiums, and a 401(k) Company matching contribution of $5,750. |
| (5) |
All other compensation amounts in 2024 for Mr. Spittle include a $1,375 Company contribution to a health savings account, $900 in Company-paid life insurance premiums, and a 401(k) Company matching contribution of $11,500. |
| (6) |
All other compensation amounts in 2024 for Mr. Fuchsen include a $1,375 Company contribution to a health savings account, $2,070 in Company-paid life insurance premiums, and a 401(k) Company matching contribution of $8,673. |
| 2025 PROXY
STATEMENT |
40 |
Employment Agreements with Named Executive
Officers
Timothy J. FitzGerald
On March 10, 2022, the Company and MM entered
into an employment agreement with Mr. FitzGerald. This employment agreement supersedes his previous employment agreement and memorializes
Mr. FitzGerald’s current base salary of $975,000 (which remains unchanged since his promotion to CEO in 2019) and his eligibility
to participate in the Company’s management incentive programs. The initial term of such employment agreement ends on December
31, 2024 and was extended automatically upon the same terms and conditions for an additional one year period.
The terms of the employment agreement relating
to the termination of Mr. FitzGerald’s employment are discussed below under the heading “Potential Payments Upon Termination
or Change in Control.”
Any summaries of Mr. FitzGerald’s employment
agreement are qualified in their entirety by reference to the employment agreement, which is filed as an exhibit to the Company’s
Annual Report on Form 10-K for the fiscal year ended December 28, 2024.
Grants of Plan-Based Awards in Fiscal Year
2024
The following table sets forth information
concerning cash incentive opportunities and grants of RSUs and PSUs made to our NEOs during fiscal year 2024. The grant dates set
forth below indicate the date on which the Board granted the award.
| |
|
|
|
Estimated
Future Payouts
Under Non-Equity Incentive
Plan
Awards(1) |
|
Estimated
Future Payouts
Under Equity Incentive
Plan
Awards |
|
|
|
|
| Name |
|
Grant
Date |
|
Threshold
($) |
|
Target
($) |
|
Max
($) |
|
Threshold
(#) |
|
Target
(#) |
|
Max
(#) |
|
All
Other Stock
Awards: Number
of Shares of
Stock or Units
(#) |
|
Grant
Date
Fair Value
of Stock
and Option
Awards
($)(2) |
| Timothy J.
FitzGerald |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(1) |
170,625 |
|
975,000 |
|
1,950,000 |
|
|
|
|
|
|
|
|
|
|
| |
|
5/14/24 |
(3)(4) |
|
|
|
|
|
|
10,814 |
|
30,898 |
|
80,335 |
|
|
|
4,226,537 |
| |
|
5/14/24 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
15,449 |
|
2,116,667 |
| Bryan E. Mittelman |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(1) |
96,250 |
|
550,000 |
|
1,100,000 |
|
|
|
|
|
|
|
|
|
|
| |
|
5/14/24 |
(3)(4) |
|
|
|
|
|
|
3,236 |
|
9,246 |
|
24,038 |
|
|
|
1,264,760 |
| |
|
5/14/24 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
4,622 |
|
633,260 |
| James K. Pool
III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(1) |
105,000 |
|
600,000 |
|
1,200,000 |
|
|
|
|
|
|
|
|
|
|
| |
|
5/14/24 |
(3)(4) |
|
|
|
|
|
|
4,428 |
|
12,652 |
|
32,894 |
|
|
|
1,730,667 |
| |
|
5/14/24 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
6,325 |
|
866,588 |
| Steven P.
Spittle |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(1) |
105,000 |
|
600,000 |
|
1,200,000 |
|
|
|
|
|
|
|
|
|
|
| |
|
5/14/24 |
(3)(4) |
|
|
|
|
|
|
4,428 |
|
12,652 |
|
32,894 |
|
|
|
1,730,667 |
| |
|
5/14/24 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
6,325 |
|
866,588 |
| Matthew R.
Fuchsen |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(1) |
73,500 |
|
420,000 |
|
840,000 |
|
|
|
|
|
|
|
|
|
|
| |
|
5/14/24 |
(3)(4) |
|
|
|
|
|
|
2,427 |
|
6,934 |
|
18,028 |
|
|
|
948,502 |
| |
|
5/14/24 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
3,467 |
|
475,014 |
| (1) |
Annual incentive plan award granted pursuant to the VCIP utilizing EBITDA$and EBITDA% performance metrics. |
| (2) |
Represents the fair value on the grant date of equity awards granted to our Named Executive Officers, consistent with the estimate of the aggregate compensation cost to be recognized over the applicable service period determined in accordance with FASB ASC Topic 718, excluding the effect of estimated forfeitures. For the RSUs, fair value is computed by multiplying the total number of shares subject to the award by the closing price per share of our common stock as reported on the date of grant. The closing trading value of our common stock was $137.01 per share on May 14, 2024. The dollar amounts for the PSUs are calculated in accordance with FASB ASC Topic 718 and assume payment of PSUs at target using a Monte Carlo simulation valuation model to reflect the impact of the TSR modifier, incorporating the following significant assumptions with respect to the May 14, 2024 grant (a) a risk-free interest rate of 4.69%, based on the U.S. constant maturity treasury rates commensurate with the expected term; (b) expected dividend yield of 0.0%; (c) expected volatility of 31.0%, based on the historical trading prices of Middleby with look-back periods commensurate with the expected term; and (d) expected term of 2.63 years. |
| 2025 PROXY
STATEMENT |
41 |
| (3) |
Represents the PSUs granted on May 14, 2024. Amounts shown in the “threshold” column represent the total number of PSUs that could be earned upon achievement of the performance criteria at the threshold level, including application of a negative 30% TSR modifier and assume continued employment through the applicable vesting dates. Amounts shown in the “target” column represent the number of PSUs that could be earned upon achievement of the performance criteria at the target level and assume continued employment through the applicable vesting dates. Amounts shown in the “maximum” column represent the maximum number of PSUs that could be earned upon achievement of the performance criteria at the maximum level, including application of a positive 30% TSR modifier and continued employment through the applicable vesting dates. Threshold, target and maximum reported numbers in the table above assume potential TSR performance below the 25th percentile for the threshold performance tier, between the 25th percentile and the 75th percentile for the target performance tier, and above the 75th percentile for the maximum performance tier. |
| (4) |
On May 14, 2024, each NEO was granted PSUs that vest based upon Adjusted EPS growth and EV growth per share performance metrics with respect to the performance period commencing on December 31, 2023, and ending on January 2, 2027. Vesting of the PSUs is subject to approval by Compensation Committee following certification of 2026 financial results. The PSUs also feature a TSR mechanism that compares the TSR of the Company to the peer group of the Company as reported in the most recent annual proxy statement. The TSR modifier decreases the number of PSUs that can be earned by 30% for Company TSR performance in the bottom quartile measured against the Company peer group and increases the number of PSUs that can be earned by 30% for Company TSR performance in the top quartile measured against the Company peer group. |
| (5) |
On May 14, 2024, each NEO was granted time-based RSUs that vest one-third on each of March 1, 2025, March 1, 2026, and March 1, 2027, subject to continued employment on each such vesting date. |
| 2025 PROXY
STATEMENT |
42 |
Outstanding Equity Awards at 2024 Fiscal
Year End
The following table sets forth certain information
concerning outstanding stock awards held by each of our Named Executive Officers under the LTIP at the end of fiscal year 2024.
| | |
Option Awards | | |
Stock Awards | |
| Name | |
Number of
Securities
Underlying
Unexercised
Options(#)
Exercisable | | |
Number of
Securities
Underlying
Unexercised
Options(#)
Unexercisable | | |
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#) | | |
Option
Exercise
Price
($) | | |
Option
Expiration
Date | | |
Number of
Shares or
Units of
Stock
That Have
Not Vested
(#) | | |
Market
Value of
Shares or
Units of
Stock
That Have
Not
Vested
($)(1) | | |
Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units
or Other
Rights That
Have Not
Vested
(#) | | |
Equity
Incentive
Plan
Awards:
Market or
Payout Value
of Unearned
Shares,
Units
or Other
Rights That
Have Not
Vested
($)(2) | |
| Timothy J. FitzGerald | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 30,273 | (3) | |
| 4,134,686 | | |
| | | |
| — | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 9,280 | (4) | |
| 1,267,462 | | |
| 27,838 | (4) | |
| 3,802,114 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 15,499 | (5) | |
| 2,116,853 | | |
| 30,898 | (5) | |
| 4,220,049 | |
| Bryan E. Mittelman | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 7,439 | (6) | |
| 1,016,019 | | |
| | | |
| — | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 2,640 | (7) | |
| 360,571 | | |
| 7,922 | (7) | |
| 1,081,987 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 4,622 | (8) | |
| 631,273 | | |
| 9,246 | (8) | |
| 1,262,819 | |
| James K. Pool III | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 9,227 | (9) | |
| 1,260,224 | | |
| | | |
| — | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 3,621 | (10) | |
| 494,556 | | |
| 10,864 | (10) | |
| 1,483,805 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 6,325 | (11) | |
| 863,869 | | |
| 12,652 | (11) | |
| 1,728,010 | |
| Steven P. Spittle | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 9,227 | (12) | |
| 1,260,224 | | |
| | | |
| — | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 3,621 | (13) | |
| 494,556 | | |
| 10,864 | (13) | |
| 1,483,805 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 6,325 | (14) | |
| 863,869 | | |
| 12,652 | (14) | |
| 1,728,010 | |
| Matthew R. Fuchsen | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 5,598 | (15) | |
| 764,575 | | |
| | | |
| — | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 2,056 | (16) | |
| 280,808 | | |
| 6,166 | (16) | |
| 842,152 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 3,467 | (17) | |
| 473,523 | | |
| 6,934 | (17) | |
| 947,046 | |
| (1) |
This column reflects time-based RSUs awarded to our NEOs. This column also reflects PSUs that were outstanding at fiscal year end for which the performance period completed on December 28, 2024 based on their actual performance. Market value is computed by multiplying the total number of shares subject to the award by the closing price of our common stock of $136.58 per share on December 27, 2024, our last trading day of fiscal year 2024. |
| (2) |
This column reflects performance-based PSUs awarded to our NEOs. Market value is computed by multiplying the total target number of shares subject to the award by the closing price of our common stock of $136.58 per share on December 27, 2024. The PSUs included in in this column are included assuming target performance levels. |
| (3) |
On May 15, 2022, Mr. FitzGerald was awarded (i) 29,342 target number of PSUs that included potential for maximum vesting of 76,290 PSUs, and (ii) 14,671 RSUs. The RSUs are scheduled to vest in 1/3 increments on each of March 1, 2023, March 1, 2024, and March 1, 2025. 4,890 RSUs vested on each of March 1, 2023 and March 1, 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS growth and EV growth per share performance targets with respect to the January 2, 2022 to December 28, 2024 performance period. |
| (4) |
On August 9, 2023, Mr. FitzGerald was awarded (i) 27,838 target number of PSUs that included potential for maximum vesting of 72,378 PSUs, and (ii) 13,919 RSUs. The RSUs are scheduled to vest in 1/3 increments on each of March 1, 2024, March 1, 2025 and March 1, 2026. 4,639 RSUs vested on March 1, 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS growth and EV growth per share performance targets with respect to the January 1, 2023 to December 27, 2025 performance period. |
| (5) |
On May 14, 2024, Mr. FitzGerald was awarded (i) 30,898 target number of PSUs that included potential for maximum vesting of 80,336 PSUs, and (ii) 15,449 RSUs. The RSUs are scheduled to vest in 1/3 increments on each of March 1, 2025, March 1, 2026 and March 1, 2027. No RSUs vested as of the end of fiscal year 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS growth and EV growth per share performance targets with respect to the December 31, 2023 to January 2, 2027 performance period. |
| (6) |
On
May 15, 2022, Mr. Mittelman was awarded (i) 7,634 target number of PSUs that included potential for maximum vesting of
19,848 PSUs, and (ii) 3,817 RSUs. The RSUs are scheduled to vest in 1/3 increments on each of March 1, 2023, March 1,
2024, and March 1, 2025. 1,272 RSUs vested on each of March 1, 2023 and March 1, 2024. The PSU component of the award
provides that shares may be earned based on the achievement of Adjusted EPS growth and EV growth per share
performance targets with respect to the January 2, 2022 to December 28, 2024 performance period. |
| (7) |
On August 9, 2023, Mr. Mittelman was awarded (i) 7,922 target number of PSUs that included potential for maximum vesting of 20,598 PSUs, and (ii) 3,960 RSUs. The RSUs are scheduled to vest in 1/3 increments on each of March 1, 2024, March 1, 2025 and March 1, 2026. 1,320 RSUs vested on March 1, 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS growth and EV growth per share performance targets with respect to the January 1, 2023 to December 27, 2025 performance period. |
| 2025 PROXY
STATEMENT |
43 |
| (8) |
On May 14, 2024, Mr. Mittelman was awarded (i) 9,246
target number of PSUs that included potential for maximum vesting of 24,040 PSUs, and (ii) 4,622 RSUs. The RSUs are scheduled
to vest in 1/3 increments on each of March 1, 2025, March 1, 2026 and March 1, 2027. No RSUs vested as of the end of fiscal
year 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS growth
and EV growth per share performance targets with respect to the December 31, 2023 to January 2, 2027 performance period. |
| (9) |
On May 15, 2022, Mr. Pool was
awarded (i) 9,542 target number of PSUs that included potential for maximum vesting of 24,810 PSUs, and (ii) 4,771 RSUs.
The RSUs are scheduled to vest in 1/3 increments on each of March 1, 2023, March 1, 2024, and March 1, 2025. 1,590 RSUs
vested on each of March 1, 2023 and March 1, 2024. The PSU component of the award provides that shares may be earned based
on the achievement of Adjusted EPS growth and EV growth per share performance targets with respect to the
January 2, 2022 to December 28, 2024 performance period. |
| (10) |
On August 9, 2023, Mr. Pool was awarded (i) 10,864
target number of PSUs that included potential for maximum vesting of 28,246 PSUs, and (ii) 5,431 RSUs. The RSUs are scheduled
to vest in 1/3 increments on each of March 1, 2024, March 1, 2025 and March 1, 2026. 1,810 RSUs vested on March 1, 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS
growth and EV growth per share performance targets with respect to the January 1, 2023 to December 27, 2025 performance period. |
| (11) |
On May 14, 2024, Mr. Pool was awarded (i) 12,652 target
number of PSUs that included potential for maximum vesting of 32,896 PSUs, and (ii) 6,325 RSUs. The RSUs are scheduled
to vest in 1/3 increments on each of March 1, 2025, March 1, 2026 and March 1, 2027. No RSUs vested as of the end of fiscal
year 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS
growth and EV growth per share performance targets with respect to the December 31, 2023 to January 2, 2027 performance period. |
| (12) |
On May 15, 2022, Mr. Spittle was awarded (i) 9,542
target number of PSUs that included potential for maximum vesting of 24,810 PSUs, and (ii) 4,771 RSUs. The RSUs are scheduled
to vest in 1/3 increments on each of March 1, 2023, March 1, 2024, and March 1, 2025. 1,590 RSUs vested on each of March 1, 2023 and March 1, 2024.
The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS growth and EV growth
per share performance targets with respect to the January 2, 2022 to December 28, 2024 performance period. |
| (13) |
On August 9, 2023, Mr. Spittle was awarded (i) 10,864
target number of PSUs that included potential for maximum vesting of 28,246 PSUs, and (ii) 5,431 RSUs. The RSUs are scheduled
to vest in 1/3 increments on each of March 1, 2024, March 1, 2025 and March 1, 2026. 1,810 RSUs vested on March 1, 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS
growth and EV growth per share performance targets with respect to the January 1, 2023 to December 27, 2025 performance period. |
| (14) |
On May 14, 2024, Mr. Spittle was awarded (i) 12,652
target number of PSUs that included potential for maximum vesting of 32,896 PSUs, and (ii) 6,325 RSUs. The RSUs are scheduled
to vest in 1/3 increments on each of March 1, 2025, March 1, 2026 and March 1, 2027. No RSUs vested as of the end of fiscal
year 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS
growth and EV growth per share performance targets with respect to the December 31, 2023 to January 2, 2027 performance period. |
| (15) |
On May 15, 2022, Mr. Fuchsen was awarded (i) 5,666
target number of PSUs that included potential for maximum vesting of 16,746 PSUs, and (ii) 2,834 RSUs. The RSUs are scheduled
to vest in 1/3 increments on each of March 1, 2023, March 1, 2024, and March 1, 2025. 944 RSUs vested on each of March 1, 2023 and March 1, 2024. The
PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS growth and EV growth
per share performance targets with respect to the January 2, 2022 to December 28, 2024 performance period. |
| (16) |
On August 9, 2023, Mr. Fuchsen was awarded (i) 6,166
target number of PSUs that included potential for maximum vesting of 16,032 PSUs, and (ii) 3,084 RSUs. The RSUs are scheduled
to vest in 1/3 increments on each of March 1, 2024, March 1, 2025 and March 1, 2026. 1,028 RSUs vested on March 1, 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS
growth and EV growth per share performance targets with respect to the January 1, 2023 to December 27, 2025 performance period. |
| (17) |
On May 14, 2024, Mr. Fuchsen was awarded (i) 6,934
target number of PSUs that included potential for maximum vesting of 18,030 PSUs, and (ii) 3,467 RSUs. The RSUs are scheduled
to vest in 1/3 increments on each of March 1, 2025, March 1, 2026 and March 1, 2027. No RSUs vested as of the end of fiscal
year 2024. The PSU component of the award provides that shares may be earned based on the achievement of Adjusted EPS
growth and EV growth per share performance targets with respect to the December 31, 2023 to January 2, 2027 performance period. |
| 2025 PROXY
STATEMENT |
44 |
Stock Vested for Fiscal Year 2024
The following table sets forth the aggregate
amounts received or realized in connection with the vesting of stock awards under the LTIP during the 2024 fiscal year by each
of the Named Executive Officers. There were no stock option exercises by the Named Executive Officers during the 2024 fiscal year.
|
Name |
|
Number of Shares
Acquired on Vesting
(#) |
|
Value Realized on
Vesting
($) |
| Timothy
J. FitzGerald(1) |
|
58,685 |
|
9,078,886 |
| Bryan
E. Mittelman(2) |
|
13,125 |
|
2,031,259 |
| James
K. Pool III(3) |
|
20,511 |
|
3,174,839 |
| Steven
P. Spittle(4) |
|
20,511 |
|
3,174,839 |
| Matthew
R. Fuchsen(5) |
|
10,749 |
|
1,663,601 |
| (1) |
3,888 RSUs that were awarded on September 7, 2021 vested on March 1, 2024. 45,268 PSUs that were awarded on September 7, 2021 vested on February 26, 2024. 4,890 RSUs that were awarded on May 15, 2022 vested on March 1, 2024. 4,639 RSUs that were awarded on August 9, 2023 vested on March 1, 2024. |
| (2) |
833 RSUs that were awarded on September 7, 2021 vested on March 1, 2024. 9,700 PSUs that were awarded on September 7, 2021 vested on February 26, 2024. 1,272 RSUs that were awarded on May 15, 2022 vested on March 1, 2024. 1,320 RSUs that were awarded on August 9, 2023 vested on March 1, 2024. |
| (3) |
972 RSUs that were awarded on September 7, 2021 vested on March 1, 2024. 16,139 PSUs that were awarded on September 7, 2021 vested on February 26, 2024. 1,590 RSUs that were awarded on May 15, 2022 vested on March 1, 2024. 1,810 RSUs that were awarded on August 9, 2023 vested on March 1, 2024. |
| (4) |
972 RSUs that were awarded on September 7, 2021 vested on March 1, 2024. 16,139 PSUs that were awarded on September 7, 2021 vested on February 24, 2024. 1,590 RSUs that were awarded on May 15, 2022 vested on March 1, 2024. 1,810 RSUs that were awarded on August 9, 2023 vested on March 1, 2024. |
| (5) |
694 RSUs that were awarded on September 7, 2021 vested on March 1, 2024. 8,083 PSUs that were awarded on September 7, 2021 vested on February 24, 2024. 944 RSUs that were awarded on May 15, 2022 vested on March 1, 2024. 1,028 RSUs that were awarded on August 9, 2023 vested on March 1, 2024. |
Potential Payments Upon Termination or
Change in Control
Under Employment Agreements
Timothy J. FitzGerald
During the term of Mr. FitzGerald’s
employment agreement, as described above under the heading “Employment Agreements with Named Executive Officers,” Mr.
FitzGerald’s employment can be terminated by the Company or MM or by Mr. FitzGerald at any time, or by the death of Mr. FitzGerald.
If Mr. FitzGerald’s employment is terminated
by the Company for reasons other than “cause” (as defined in the employment agreement), or by Mr. FitzGerald due to
a material diminution of his duties, or due to his death or disability, Mr. FitzGerald would be entitled to a pro-rata share of
any incentive compensation under the VCIP that would otherwise have been payable to him based on actual performance had he remained
employed by the Company until the last day of the fiscal year. In addition, if the Company terminates Mr. FitzGerald’s employment
without cause, or if Mr. FitzGerald terminates his employment due to a material diminution of his duties, Mr. FitzGerald would
be entitled to (i) a lump sum payment equal to three times the sum of (x) his annual base salary as in effect immediately prior
to the date of termination and (y) an amount equal to the greater of (I) the amount of his annual incentive bonus with respect
to the full calendar year immediately prior to the year of termination and (II) the average of his annual incentive bonuses for
each of the three calendar years immediately prior to the year of termination, and (ii) continued coverage under any medical, dental,
vision, disability and life insurance program or policy maintained by the Company for twenty-four months at the active employee
cost.
If any amount payable to Mr. FitzGerald is
deemed under the Internal Revenue Code to be made in connection with a change in control of the Company and would result in imposition
of an excise tax, the employment agreement provides that Mr. FitzGerald’s payments will be reduced to an amount that would
not result in the imposition of an excise tax, to the extent such reduction would result in a greater after-tax benefit to Mr.
FitzGerald.
Under Equity Incentive Plans
In the event of a termination of employment
by the Company other than for cause (with respect to Messrs. FitzGerald, Mittelman, Pool, Spittle and Fuchsen), or resignation
due to a diminution of duties (with respect to Mr. FitzGerald), a portion of the time-based component of any outstanding share
awards would immediately vest on a pro-rata basis. Further, the performance-based component of any outstanding restricted stock
or PSU award will vest in that number of shares or PSUs that would have vested based on actual performance, pro-rated for the number
of days of the relevant performance period through the date of termination. Any remaining shares that do not vest are forfeited.
| 2025 PROXY
STATEMENT |
45 |
In the event
of a “change in control” (as defined in the PSU and RSU agreements), all of the RSUs, to the extent not already vested,
would immediately vest as of the date of such change of control. The PSU award would immediately vest in the greater of (i) the
target number of PSUs or (ii) the number of PSUs that would have vested based on actual performance measured immediately prior
to the date of the change of control as determined by
the Compensation Committee. Any remaining PSUs that do not vest are forfeited.
Quantification
The tables below illustrate the potential
payments to each Named Executive Officer under each of the circumstances discussed above. The tables assume that the terminations
or change in control, as applicable, took place on December 28, 2024, the last day of our 2024 fiscal year, and are based on the
applicable executive’s current employment terms and the closing value of our common stock on December 27, 2024, the last
trading day of our 2024 fiscal year, which was $136.58 per share.
| Name | |
Type of Payment | |
Involuntary
Termination
Without Cause | | |
Voluntary
Termination due to
Material Diminution
of Duties | | |
Change in Control | |
| Timothy J. FitzGerald | |
Cash Severance | |
$ | 8,127,600 | | |
$ | 8,127,600 | | |
$ | 8,127,600 | (1) |
| | |
Benefits | |
$ | 60,000 | (2) | |
$ | 60,000 | (2) | |
$ | 60,000 | (2) |
| | |
Accelerated Vesting
of Restricted Stock,
RSUs or PSUs | |
$ | 9,954,041 | (3) | |
$ | 9,954,041 | (3) | |
$ | 16,075,193 | (3) |
| | |
Total | |
$ | 18,141,641 | | |
$ | 18,141,641 | | |
$ | 24,262,793 | |
| Bryan E. Mittelman | |
Cash Severance | |
$ | — | | |
$ | — | | |
$ | — | |
| | |
Accelerated Vesting
of Restricted Stock,
RSUs or PSUs | |
$ | 2,749,492 | (4) | |
$ | — | | |
$ | 4,553,167 | (4) |
| | |
Total | |
$ | 2,749,492 | | |
$ | — | | |
$ | 4,553,167 | |
| James K. Pool III | |
Cash Severance | |
$ | — | | |
$ | — | | |
$ | — | |
| | |
Accelerated Vesting
of Restricted Stock,
RSUs or PSUs | |
$ | 3,620,986 | (5) | |
$ | — | | |
$ | 6,090,785 | (5) |
| | |
Total | |
$ | 3,620,986 | | |
$ | — | | |
$ | 6,090,785 | |
| Steven P. Spittle | |
Cash Severance | |
$ | — | | |
$ | — | | |
$ | — | |
| | |
Accelerated Vesting
of Restricted Stock,
RSUs or PSUs | |
$ | 3,620,986 | (6) | |
$ | — | | |
$ | 6,090,785 | (6) |
| | |
Total | |
$ | 3,620,986 | | |
$ | — | | |
$ | 6,090,785 | |
| Matthew R. Fuchsen | |
Cash Severance | |
$ | — | | |
$ | — | | |
$ | — | |
| | |
Accelerated Vesting
of Restricted Stock,
RSUs or PSUs | |
$ | 2,239,584 | (7) | |
$ | — | | |
$ | 3,446,596 | (7) |
| | |
Total | |
$ | 2,239,584 | | |
$ | — | | |
$ | 3,446,596 | |
| (1) |
This potential payment upon change in control assumes that upon such change in control Mr. FitzGerald’s employment also was terminated by the Company without cause or there was a voluntary termination due to material diminution of duties. In the event of a change in control not including a qualifying termination, Mr. FitzGerald would be entitled to $186,781, which is a payment equal to the short-term incentive for the year of the assumed change in control. |
| (2) |
In the event of involuntary termination without cause or voluntary termination due to material diminution of duties, Mr. FitzGerald is entitled to receive continued coverage under any medical, dental, vision, disability and life insurance program or policy maintained by the Company on terms and conditions no less favorable than those applicable to senior executive officers of the Company from time to time (including with respect to payment for the costs thereof) for twenty-four (24) months. This row estimates the value of this benefit. |
| (3) |
Includes 29,342 PSUs and 9,781 RSUs that were granted on May 15, 2022. Includes 27,838 PSUs and 13,919 RSUs that were granted on August 9, 2023. Includes 30,898 PSUs and 15,449 RSUs that were granted on May 14, 2024. In the event of a change of control, such RSUs, to the extent not then vested, would immediately vest in full, such PSUs would immediately vest in the greater of (i) the number of PSUs that would vest at the target level of performance and (ii) the number of PSUs that would otherwise vest based on actual performance measured immediately prior to the change of control, as determined by the Compensation Committee, and such PSUs are estimated in this table to immediately vest at the target number of PSUs. In the event of a termination without cause by the Company or by Mr. FitzGerald due to a material diminution in duties, the RSUs would immediately vest in that number of RSUs that were granted, pro-rated for the period of time employed by the Company during the relevant performance period, and (ii) such PSUs would immediately vest in that number of PSUs that would vest based on actual performance measured as of the end of the performance period, pro-rated for the number of days worked through the date of termination. For purposes of this table, these PSUs were valued at target performance. |
| 2025 PROXY
STATEMENT |
46 |
| (4) |
Includes 7,634 PSUs and 2,545 RSUs that were granted on May 15, 2022. Includes 7,922 PSUs and 3,960 RSUs that were granted on August 9, 2023. Includes 9,246 PSUs and 4,622 RSUs that were granted on May 14, 2024. In the event of a change of control, such RSUs, to the extent not then vested, would immediately vest in full, and such PSUs would immediately vest in the greater of (i) the number of PSUs that would vest at the target level of performance and (ii) the number of PSUs that would otherwise vest based on actual performance measured immediately prior to the change of control, as determined by the Compensation Committee, and such PSUs are estimated in this table to immediately vest at the target number of PSUs. In the event of a termination without cause by the Company, the RSUs would immediately vest in that number of shares of RSUs that were granted, pro-rated for the period of time employed by the Company during the relevant performance period, and (ii) such PSUs would immediately vest in that number of PSUs that would vest based on actual performance measured as of the end of the performance period, pro-rated for the number of days worked through the date of termination. For purposes of this table, these PSUs were valued at target performance. |
| (5) |
Includes 9,542 PSUs and 3,181 RSUs that were granted on May 15, 2022. Includes 10,864 PSUs and 5,431 RSUs that were granted on August 9, 2023. Includes 12,652 PSUs and 6,325 RSUs that were granted on May 14, 2024. In the event of a change of control, such RSUs, to the extent not then vested, would immediately vest in full, and such PSUs would immediately vest in the greater of (i) the number of PSUs that would vest at the target level of performance and (ii) the number of PSUs that would otherwise vest based on actual performance measured immediately prior to the change of control, as determined by the Compensation Committee, and such PSUs are estimated in this table to immediately vest at the target number of PSUs. In the event of a termination without cause by the Company, the RSUs would immediately vest in that number of shares of RSUs that were granted, pro-rated for the period of time employed by the Company during the relevant performance period, and (ii) such PSUs would immediately vest in that number of PSUs that would vest based on actual performance measured as of the end of the performance period, pro-rated for the number of days worked through the date of termination. For purposes of this table, these PSUs were valued at target performance. |
| (6) |
Includes 9,542 PSUs and 3,181 RSUs that were granted on May 15, 2022. Includes 10,864 PSUs and 5,431 RSUs that were granted on August 9, 2023. Includes 12,652 PSUs and 6,325 RSUs that were granted on May 14, 2024. In the event of a change of control, such RSUs, to the extent not then vested, would immediately vest in full, and such PSUs would immediately vest in the greater of (i) the number of PSUs that would vest at the target level of performance and (ii) the number of PSUs that would otherwise vest based on actual performance measured immediately prior to the change of control, as determined by the Compensation Committee, and such PSUs are estimated in this table to immediately vest at the target number of PSUs. In the event of a termination without cause by the Company, the RSUs would immediately vest in that number of shares of RSUs that were granted, pro-rated for the period of time employed by the Company during the relevant performance period, and (ii) such restricted performance stock or PSUs would immediately vest in that number of shares or PSUs that would vest based on actual performance measured as of the end of the performance period, pro-rated for the number of days worked through the date of termination. For purposes of this table, these PSUs were valued at target performance. |
| (7) |
Includes 5,666 PSUs and 1,890 RSUs that were granted on May 15, 2022. Includes 6,166 PSUs and 3,084 RSUs that were granted on August 9, 2023. Includes 6,934 PSUs and 3,467 RSUs that were granted on May 14, 2024. In the event of a change of control, such RSUs, to the extent not then vested, would immediately vest in full, and such PSUs would immediately vest in the greater of (i) the number of PSUs that would vest at the target level of performance and (ii) the number of PSUs that would otherwise vest based on actual performance measured immediately prior to the change of control, as determined by the Compensation Committee, and such PSUs are estimated in this table to immediately vest at the target number of PSUs. In the event of a termination without cause by the Company, the RSUs would immediately vest in that number of shares of RSUs that were granted, pro-rated for the period of time employed by the Company during the relevant performance period, and (ii) such PSUs would immediately vest in that number of PSUs that would vest based on actual performance measured as of the end of the performance period, pro-rated for the number of days worked through the date of termination. For purposes of this table, these PSUs were valued at target performance. |
CEO Compensation Pay Ratio for Fiscal Year
2024
We monitor the relationship between the compensation
of our executive officers and the compensation of our non-managerial employees. For 2024, Mr. FitzGerald’s total compensation
of $7,525,481 was approximately 150 times the total compensation of a median employee, $50,324.
We identified the median employee using base salary and bonus payments (i.e., cash-based compensation) for all individuals, excluding
Mr. FitzGerald, who were employed by Middleby on December 28, 2024 (whether employed on a full time, part-time, seasonal, or temporary
basis). We used a December 28 measurement date to select our median employee for fiscal year 2024 rather than the December 30 measurement
date we used last year, because December 28 was the last day of fiscal year 2024 and December 30 was the last day of fiscal
year 2023. After identifying the median employee, we calculated annual total compensation for such employee using the same methodology
we use to determine Mr. FitzGerald’s compensation for the Summary Compensation Table.
Middleby is a global company with a total
employee population of approximately 10,616 employees as of December 28, 2024. This total is made up of approximately 5,828 U.S-based
employees and approximately 4,788 employees located in 24 jurisdictions outside of the U.S.
Our employee population studied to determine the median employee consisted of approximately 10,616 individuals.
Pay Versus Performance
Set forth below are certain disclosures related
to executive compensation and company performance using selected financial performance measures required by Item 402(v) of Regulation
S-K. The table below discloses: (i) the total compensation paid (as reported in the Summary Compensation Table (“SCT”))
and the compensation actually paid (“CAP”) to the individuals who served as the Company’s CEO; (ii) the average
of the total compensation paid (as reported in the SCT) and the average CAP to the individuals who served as non-CEO NEOs; (iii)
the cumulative total shareholder return of the Company and peer group cumulative total shareholder return; (iv) net income; (v)
Adjusted EBITDA, and (vi) Adjusted EPS. CAP is calculated in the manner required by Item 402(v) of Regulation S-K.
| 2025 PROXY
STATEMENT |
47 |
Please refer to the Compensation Discussion
and Analysis for a discussion of the Company’s executive compensation policies and programs and an explanation of the Company’s
executive compensation review process.
| | |
| | |
| | |
| | |
| | |
Value of Initial Fixed
$100 Investment
Based on: | | |
| | |
| | |
| |
| Year | |
Summary
Compensation
Table Total for
CEO | | |
Compensation
Actually Paid to
CEO(1)(2)(7) | | |
Average
Summary
Compensation
Table Total
for Non-CEO
NEOs | | |
Average
Compensation
Actually Paid
to Non-CEO
NEOs(1)(2)(7) | | |
Total
Shareholder
Return | | |
Peer Group
Total
Shareholder
Return(3) | | |
Net Income
(in Thousands) | | |
Adjusted
EBITDA
(in thousands)(6) | | |
Adjusted
EPS (per
share)(6) | |
| 2024 | |
$ | 7,525,481 | | |
$ | 10,011,061 | | |
$ | 2,787,733 | | |
$ | 3,714,051 | | |
$ | 123.68 | | |
$ | 178.16 | | |
$ | 428,433 | | |
$ | 866,295 | | |
$ | 9.49 | |
| 2023 | |
$ | 8,434,879 | | |
$ | 12,211,462 | | |
$ | 3,199,021 | | |
$ | 4,196,866 | | |
$ | 134.38 | | |
$ | 161.25 | | |
$ | 400,882 | | |
$ | 900,394 | | |
$ | 9.70 | |
| 2022 | |
$ | 9,402,045 | | |
$ | 7,174,921 | | |
$ | 3,353,429 | | |
$ | 2,801,501 | | |
$ | 122.26 | | |
$ | 126.65 | | |
$ | 436,569 | | |
$ | 853,408 | | |
$ | 9.10 | |
| 2021 | |
$ | 9,406,995 | | |
$ | 15,006,040 | | |
$ | 3,580,324 | | |
$ | 4,894,970 | | |
$ | 179.66 | | |
$ | 146.22 | | |
$ | 488,492 | | |
$ | 712,574 | | |
$ | 7.94 | |
| 2020 | |
$ | 5,345,193 | | |
$ | 5,864,185 | (4)(5) | |
$ | 1,219,490 | | |
$ | 1,387,825 | (4)(5) | |
$ | 117.71 | | |
$ | 116.37 | | |
$ | 207,294 | | |
$ | 483,893 | | |
$ | 4.96 | |
| (1) |
|
| (2) |
|
| (3) |
|
| (4) |
|
| (5) |
|
| (6) |
|
| (7) |
|
| (1) |
The “Compensation Actually Paid” amounts in these columns are calculated in the manner required by Item 402(v) of Regulation S-K. However, they do not represent the actual amount of compensation the Company considers to be earned by or paid to the NEOs during the applicable year. In particular, with respect to long-term equity incentive awards, “compensation actually paid” does not represent amounts actually paid to the NEO or necessarily the value that will ultimately be realized under long-term equity incentive awards. Rather, it primarily reflects the change in fair market value of equity awards during the applicable year, including for unvested awards subject to the achievement of performance targets in future years. Given the methodology under which CAP is required to be calculated, these amounts are subject to significant fluctuation based on stock price volatility and varying levels of projected and actual achievement with respect to PSU awards. |
| (2) |
The table below sets forth the amounts deducted from and added to SCT total compensation to calculate CAP to the CEO and average CAP to the non-CEO NEOs: |
| |
|
| | |
2024 | |
| Adjustments | |
CEO | | |
Average of
Non-CEO
NEOs | |
| Total Compensation from SCT | |
$ | 7,525,481 | | |
$ | 2,787,733 | |
| Less, Change in Pension Value reported in SCT | |
$ | — | | |
$ | — | |
| Plus, service cost | |
$ | — | | |
$ | — | |
| Plus, prior service cost for plan amendment or new plan | |
$ | — | | |
$ | — | |
| Less, value of Stock Awards and Option Awards reported in SCT | |
$ | (6,343,205 | ) | |
$ | (2,129,012 | ) |
| Plus, year-end fair value of Stock Awards and Option Awards granted during year that are outstanding and unvested at year-end | |
$ | 6,259,471 | | |
$ | 2,100,907 | |
| Plus, change in year-end fair value of Stock Awards and Option Awards granted in any prior year that are outstanding and unvested at year-end | |
$ | (1,100,928 | ) | |
$ | (342,819 | ) |
| Plus, change in year-end fair value as of vesting date of any Stock Awards and Option Awards granted in any prior year that vested during covered year | |
$ | 3,670,241 | | |
$ | 1,297,241 | |
| Less, fair value at end of prior year of Stock Awards and Option Awards that failed to meet applicable vesting conditions during year | |
$ | — | | |
$ | — | |
| Plus, dividends or other earnings paid on Stock Awards and Option Awards during year prior to vesting if not otherwise included in total compensation for year | |
$ | — | | |
$ | — | |
| Compensation Actually Paid | |
$ | 10,011,061 | | |
$ | 3,714,051 | |
| (3) |
The peer group used in this Pay Versus Performance table is the Peer Group the Compensation Committee confirmed was appropriate as a reference for 2024 pay determinations, as further described in the Compensation Discussion & Analysis. The peer group used in this Pay Versus Performance table changed as compared with the peer group used last year in the Pay Versus Performance table. A detailed list of the peer group used in this Pay Versus Performance table is set forth in “Compensation Discussion and Analysis – Parties Involved in Compensation Decisions” on page 32. The peer group consists of AMETEK, Inc., Carlisle Companies Incorporated, Crane Co., Dover Corporation, Flowserve Corporation, Graco Inc. Helen of Troy Limited, Hubbell Incorporated, IDEX Corporation, Ingersoll Rand Inc., ITT Inc., John Bean Technologies Corporation, Lincoln Electric Holdings, Inc., Nordson Corporation, Pentair plc, Regal Rexnord Corporation, Rockwell Automation, Inc., Snap-on Incorporated, The Timken Company, Woodward, Inc. and Xylem Inc. The peer group used in this Pay Versus Performance table added Dover Corporation and Regal Rexnord Corporation, as compared to the peer group used in the peer group used last year in the Pay Versus Performance table. The peer group TSR would have been $117.71, $179.66, $122.26, $134.38, and $123.68 for each of 2020, 2021, 2022, 2023, and 2024, respectively, had the 2023 CD&A peer group remained the same for 2024. |
| (4) |
Amounts earned by our NEOs as annual cash-based incentive compensation for fiscal year 2019 were paid in shares of Middleby common stock to conserve cash as part of the Company’s strategic plan to respond to the initial stages of the COVID-19 pandemic. These shares were awarded on March 25, 2020, after the completion of the Company’s fiscal year-end audit and after the Compensation Committee certified that the 2019 VCIP goals had been attained. The number of shares awarded to each NEO was determined by dividing the aggregate value of such NEO’s bonus payable for fiscal year 2019 performance by the closing price of our stock on March 25, 2020, and vested immediately upon issuance. This compensation was included as Non-Equity Incentive Plan Compensation for fiscal year 2019 in the Summary Compensation Table, and accordingly was not included in the calculation of CAP for fiscal year 2020. |
| 2025 PROXY
STATEMENT |
48 |
| (5) |
On April 10, 2020, the CEO and each of the NEOs elected to forego portions of base salary in respect of fiscal year 2020 as part of the Company’s strategic plan to respond to the initial stages of the COVID-19 pandemic. In lieu of such foregone base salary, the Compensation Committee determined to award the CEO and each of the NEOs a grant of restricted stock, which grant had an aggregate grant date fair value equal to the amount of such foregone salary. The restricted stock vested in full on December 28, 2020. This compensation was included as Base Salary for fiscal year 2020 in the Summary Compensation Table, and accordingly was not included in the stock award adjustment portion of the calculation of CAP for fiscal year 2020. |
| (6) |
Pursuant to Item 402(v) of Regulation S-K, we determined Adjusted EPS to be the most important financial performance measure used to link company performance to CAP to our CEO and other NEOs in 2022, 2023 and 2024. This performance measure may not have been the most important financial performance measure for 2021 or 2020 and we may determine a different financial performance measure to be the most important such measure in future years. Adjusted EBITDA is included as a supplemental measure. See Annex A for a discussion of these non-GAAP measures. |
| (7) |
Mr. Timothy J. FitzGerald is the only CEO reflected in the Pay Versus Performance Table. For fiscal years 2024 and 2023, Messrs. Mittelman, Pool, Spittle and Fuchsen are the other NEOs reflected in the Pay Versus Performance Table. For fiscal years 2022 and 2021, Messrs. Mittelman, Martin M. Lindsay, Pool, and Spittle are the other NEOs reflected in the Pay Versus Performance Table. For fiscal year 2020, Messrs. David Brewer, Mittelman and Lindsay are the other NEOs reflected in the Pay Versus Performance Table. |
Relationship Between Compensation
Actually Paid and Performance Measures
The charts below provide a graphic description of the relationships
between (x) CAP to our CEO and CAP to our Non-CEO NEOs and (y) (i) our total shareholder return and our peer group’s total
shareholder return; (ii) our net income; (iii) our Adjusted EBITDA and (iv) our Adjusted EPS.
Total Shareholder Return
Net Income
| 2025 PROXY
STATEMENT |
49 |
Compensation Actually Paid Versus Adjusted
EBITDA
Compensation Actually Paid Versus Adjusted
EPS
Most Important Financial Measures
The table below contains an unranked list
of the most important financial performance measures used to link compensation actually paid to the NEOs to Company performance.
Measures that were used to link executive compensation to Company performance are further described in the Compensation Discussion & Analysis.
| Most Important Financial Measures |
| EBITDA$ |
| EBITDA% |
| Adjusted EPS Growth |
| Enterprise Value Growth (Less Net Debt) Per Share |
| 2025 PROXY
STATEMENT |
50 |
Security Ownership of Certain Beneficial Owners
and Management
The following table sets forth certain information
with respect to the beneficial ownership of shares of Middleby common stock as of March 17, 2025, by each person known by the Company
to be the beneficial owner of more than five percent of our common stock, each director and each nominee for director, each Named
Executive Officer for fiscal year 2024, and all current directors and executive officers as a group. Unless otherwise indicated
below, the address for each person listed below is c/o The Middleby Corporation, 1400 Toastmaster Drive, Elgin, Illinois 60120.
| Name of Beneficial Owner | |
Amount and
Nature of
Beneficial Ownership | | |
Percent
Of Class |
| Directors, Director Nominees, and Executive Officers: | |
| | | |
| |
| Timothy J. FitzGerald | |
| 418,938 | (1) | |
| * |
| Bryan E. Mittelman | |
| 35,942 | | |
| * |
| James K. Pool III | |
| 44,263 | | |
| * |
| Steven P. Spittle | |
| 42,448 | | |
| * |
| Matthew R. Fuchsen | |
| 34,329 | | |
| * |
| Julie Bowerman | |
| — | | |
| |
| Sarah Palisi Chapin | |
| 6,611 | | |
| * |
| Edward Garden(2) | |
| 2,635,866 | | |
| 4.91% |
| Cathy L. McCarthy | |
| 8,611 | | |
| * |
| John R. Miller III | |
| 10,931 | | |
| * |
| Robert A. Nerbonne | |
| 23,113 | | |
| * |
| Gordon J. O'Brien | |
| 41,146 | | |
| * |
| Stephen R. Scherger | |
| 1,140 | | |
| * |
| Tejas P. Shah | |
| 1,140 | | |
| * |
| Nassem A. Ziyad | |
| 13,031 | | |
| * |
| All directors, nominees and executive officers of the Company (15 individuals) | |
| 3,317,509 | | |
| 6.18% |
| The Vanguard Group(3) | |
| 5,097,428 | | |
| 9.50% |
| 100 Vanguard Boulevard, Malvern, PA 19355 | |
| | | |
| |
| Select Equity Group(4) | |
| 6,561,001 | | |
| 12.23% |
| 380 Lafayette Street, 6th Floor, New York, NY 10003 | |
| | | |
| |
| Blackrock(5) | |
| 4,457,976 | | |
| 8.31% |
| 50 Hudson Yards, New York, NY 10001 | |
| | | |
| |
| Wellington Management Group LLP(6) | |
| 4,131,574 | | |
| 7.70% |
| c/o Wellington Management Company LLP, 280 Congress Street Boston, MA 02210 | |
| | | |
| |
| Victory Capital Management Inc.(7) | |
| 2,762,555 | | |
| 5.15% |
| 4900 Tiedeman Rd., 4th Floor, Brooklyn, OH 44144 | |
| | | |
| |
| * |
Indicates beneficial ownership of less than 1%. |
| (1) |
Includes 20,000 shares held by Mr. FitzGerald’s spouse as trustee,
56,250 shares held by Mr. FitzGerald as trustee, and 25,200 shares held by Mr. FitzGerald’s spouse and children. |
| (2) |
Reflects 2,635,866 shares held directly by GI
SPV I. Mr. Garden is the sole member of Garden Investment Management GP, LLC, which serves as the general partner of Garden
Investment Management, L.P., which serves as the management company for GI SPV I. Accordingly, Mr. Garden may be deemed to
indirectly beneficially own (as that term is defined in Rule 13d-3 under the Exchange Act) the securities beneficially owned by GI SPV I. |
| (3) |
Based on a Schedule 13G/A filed with the SEC on February 13, 2024,
by The Vanguard Group, The Vanguard Group beneficially owns 5,097,428 shares and has (a) shared voting power with respect
to 19,133 shares, (b) sole dispositive power with respect to 5,021,198 shares, and (d) shared dispositive power with respect
to 76,230 shares. |
| 2025 PROXY
STATEMENT |
51 |
| (4) |
Based on a Schedule 13G/A filed with the SEC on November 14, 2024, by Select Equity
Group, L.P. beneficially owns 6,561,001 shares and has (a) shared voting power with respect to 6,561,001 shares and (b) shared
dispositive power with respect to 6,561,001 shares. |
| (5) |
Based on a Schedule 13G/A filed with the SEC on January 25, 2024, by Blackrock, Inc., Blackrock,
Inc. beneficially owns 4,457,976 shares and has (a) sole voting power with respect to 4,348,606 shares and (b) sole dispositive
power with respect to 4,457,976 shares. |
| (6) |
Based on a Schedule 13G/A filed with the SEC on February 9, 2024, by Wellington Management
Group LLP, Wellington Management Group LLP beneficially owns 4,131,574 shares and has (a) shared voting power with respect
to 3,819,276 shares and (b) shared dispositive power with respect to 4,131,574 shares. |
| (7) |
Based on a Schedule 13G filed with the SEC on February 7, 2024 by Victory Capital Management
Inc., Victory Capital Management Inc. beneficially owns 2,762,555 shares and has (a) sole voting power with respect to 2,710,583
shares and (b) sole dispositive power with respect to 2,762,555 shares. |
Equity Compensation Plan Information
The following table sets forth information with
respect to securities authorized for issuance under our equity compensation plans as of December 28, 2024.
| Plan category | |
Number of securities
to be issued upon exercise
of outstanding options,
warrants
and rights
(a) (#) | | |
Weighted average
exercise price of
outstanding options,
warrants and rights
(b) | | |
Number of securities
remaining available for
future issuance under
equity compensation
plans
(excluding securities
reflected in the first
column)
(c) | |
| Equity compensation plans approved by security holders | |
| 1,520,732 | (1) | |
$ | — | (2) | |
| 372,167 | (3) |
| Equity compensation plans not approved by security
holders | |
| — | | |
| — | | |
| — | |
| Total | |
| 1,520,732 | | |
| — | | |
| 372,167 | |
| (1) |
Indicates the number of RSUs and PSUs that were outstanding
under the LTIP as of December 28, 2024. The PSUs have been calculated based on the maximum outcome of the applicable performance
conditions, including maximum TSR modifier. |
| (2) |
There is no exercise price associated with the RSUs and PSUs. Accordingly,
the weighted average exercise price does not take these awards into account. |
| (3) |
Represents shares issuable as of December 28, 2024 under the LTIP, the only equity compensation
plan under which shares were available for grant of equity compensation awards. |
| 2025 PROXY
STATEMENT |
52 |
Delinquent Section 16(a) Reports
Under Section 16(a) of the Securities Exchange
Act of 1934, as amended, the Company’s directors and executive officers and any person that beneficially owns more than ten
percent of the Company’s common stock are required to report their beneficial ownership and any changes in that ownership
to the SEC and the NASDAQ. These reports are required to be submitted by specified deadlines, and the Company is required to report
in this proxy statement any failure by directors, officers and beneficial owners of more than ten percent of its common stock to
file such reports on a timely basis during the Company’s most recent fiscal year or, in the case of such a failure that has
not previously been so disclosed, prior fiscal years.
Based solely on a review of the copies of reports
furnished to the Company during and with respect to the year ended December 28, 2024, and written representations from certain
of the Company’s directors and executive officers, the Company does not know of any failure by its executive officers, directors
and beneficial owners of more than ten percent of its common stock to file on a timely basis any reports required by Section 16(a)
for the year ended December 28, 2024, and, to the extent applicable for purposes of this disclosure, prior fiscal years, except
as disclosed herein.
| 2025 PROXY
STATEMENT |
53 |
Proposal No. 3
Ratification of Selection of Independent Public Accountants
Ernst & Young LLP served as independent public
accountants for the Company for the fiscal year ended December 28, 2024. The Audit Committee has selected Ernst & Young LLP
to continue to provide audit services for the current fiscal year ending January 3, 2026. Accordingly, the Board recommends
that stockholders ratify the selection of Ernst & Young LLP as the Company’s independent auditor for the current fiscal
year. Representatives of Ernst & Young LLP are expected to attend the annual meeting, to make a statement if they desire to
do so, and to be available to respond to appropriate questions.
Vote Required for Approval; Board Recommendation
The vote of a majority of votes cast is necessary to approve the proposal
to ratify the selection of Ernst & Young LLP as the Company’s independent public accountants.
 |
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS
VOTE “FOR” THE RATIFICATION OF THE SELECTION OF ERNST & YOUNG LLP. |
| 2025 PROXY
STATEMENT |
54 |
Report of the Audit Committee
The Audit Committee conducts its oversight activities
for the Company to fulfill its duties and responsibilities outlined in the Audit Committee charter.
For the fiscal year ended December 28, 2024,
the Audit Committee has reviewed and discussed the audited financial statements and internal controls over financial reporting
with management and the Company’s independent registered public accounting firm, Ernst & Young, LLP.
The Audit Committee has discussed with the Company’s
independent registered public accounting firm the matters that are required to be discussed by the Public Company Accounting Oversight
Board (“PCAOB”) and the SEC. The Audit Committee has also received and reviewed the written disclosures and the letter
from the independent registered public accounting firm required by applicable PCAOB rules regarding Ernst & Young’s communication
with the Audit Committee concerning independence, and held discussions with Ernst & Young regarding independence.
Based on the review and discussions outlined
above, the Audit Committee recommended to the Board of Directors that the financial statements be included in the Company’s
Annual Report on Form 10-K for the year ended December 28, 2024.
The Middleby Corporation Audit Committee
Cathy McCarthy, Chairperson
Tejas Shah, Stephen Scherger and
Nassem Ziyad
Audit Firm Fee Summary
| | |
2024 | | |
2023 |
| Audit Fees—Fees for the annual financial statement and internal control
audits, reviews of the Company’s quarterly reports on Form 10-Q, and services normally provided by the independent auditor
in connection with statutory and regulatory filings | |
$ | 4,973,074 | | |
$ | 4,644,963 |
| Audit-Related Fees—Fees for the assurance and related services that are associated
with the performance of the audit or interim financial statement review and are not reported under audit fees | |
$ | 9,247 | | |
$ | 15,829 |
| Tax Fees—Fees for tax compliance | |
$ | 18,041 | | |
$ | 17,306 |
| —Fees for assistance with tax audits and tax planning | |
$ | — | | |
$ | — |
| All Other Fees | |
$ | — | | |
$ | — |
All of the services described in Audit Fees,
Audit-Related Fees, Tax Fees, and All Other Fees were pre-approved by the Audit Committee.
The Audit Committee has considered whether the
provision of non-audit services by the Company’s principal auditor is compatible with maintaining the independence of the
Company’s public accountants.
The Audit Committee charter provides that
the Audit Committee must pre-approve all audit and permitted non-audit services to be performed by the independent auditor
(subject to the de minimis exceptions under applicable law, rules, and regulations). However, the Audit Committee may
delegate to one or more designated committee members the authority to grant such pre-approvals. The decisions of any member
to whom such authority is delegated will be presented to the full Audit Committee at its next regularly scheduled meeting. In
determining whether to pre-approve permitted non-audit services, the Audit Committee (or the members with authority to
pre-approve) must consider whether the auditor’s performance of such services is compatible with independence.
| 2025 PROXY
STATEMENT |
55 |
Information About the Annual Meeting
Who can attend and vote at the Annual Meeting?
Stockholders of record at the close of business
on March 17, 2025 (the “Record Date”), are entitled to notice of and to vote at the Annual Meeting. On the Record Date,
there were 53,646,157 outstanding shares of Middleby common stock. In deciding all questions at the Annual Meeting, each stockholder
will be entitled to one vote for each share held on the Record Date. Please note that if you hold your shares through a bank, broker
or other nominee, you must obtain a legal proxy from such nominee, if you want to vote at the meeting.
If you wish to submit a question, you may do
so during the meeting at www.virtualshareholdermeeting.com/MIDD2025. Only stockholders with a valid control number will have access
to ask questions during the meeting. Questions pertinent to meeting matters will be answered during the meeting as time allows.
If we receive substantially similar written questions, we may group such questions together and provide a single response to avoid
repetition and allow time for additional questions.
If you experience technical difficulties, please contact the technical
support telephone number posted on www.virtualshareholdermeeting.com/MIDD2025.
What are the quorum requirements for the meeting?
The election inspectors appointed for the Annual
Meeting will determine the presence of a quorum and tabulate the votes cast. The presence, in person or represented by proxy, of
the holders of a majority of the shares of Middleby common stock outstanding and entitled to vote will constitute a quorum that
enables us to transact business at the meeting. Abstentions and broker non-votes will be included in determining whether we
have a quorum. For information on broker non-votes, see “What is a broker non-vote?” below.
What proposals will be voted on at the meeting,
and what is the vote required to pass?
The following table shows information about the
three proposals we will consider at the meeting.
| Proposal |
|
Board voting
recommendation |
|
Vote required to pass |
| Election of directors |
|
FOR
each nominee |
|
Election of each individual director requires the vote of a majority of the votes cast |
| Advisory vote to approve executive compensation |
|
FOR |
|
Majority of the votes cast |
| Ratification of the independent public accountants |
|
FOR |
|
Majority of the votes cast |
For each proposal we will consider only votes
actually cast, whether in person or by proxy. Abstentions and broker non-votes will not have any effect on the results of Proposal
1 or Proposal 2, and we do not expect to have broker non-votes for Proposal 3.
What is a broker non-vote?
If you are not a registered owner of Middleby
stock—meaning you own your shares through a bank, broker, or other nominee—you are considered a “beneficial owner.”
Your nominee is the registered owner of your stock, but you are entitled to tell your nominee how to vote your shares. In some
cases, your nominee can vote your shares without instructions. At our Annual Meeting, nominees can use their discretion to vote
on the proposal regarding the ratification of the auditors even if they don’t have instructions from the beneficial owners.
On all other matters—the election of directors and the advisory approval of executive compensation—nominees cannot
vote without instructions from the beneficial owners. A broker non-vote occurs when a broker does not have discretionary authority
or voting instructions as to certain shares to vote on a particular matter.
How can I vote?
If you own shares in your own name, you may vote
in one of the following ways:
| ● |
visit the website shown on your Notice of Internet Availability of Proxy
Materials or proxy card to vote electronically |
| ● |
follow the instructions on your Notice of Internet Availability of Proxy
Materials or proxy card to vote by telephone |
| ● |
if you requested printed proxy materials, sign and return the proxy card
using the postage-paid envelope provided |
| ● |
virtually attend the Annual Meeting and vote in person |
If you own shares through a bank, broker or other
nominee, please follow the instructions provided by such nominee to ensure your votes are executed. If you wish to vote your shares
virtually in person at the Annual Meeting, you must obtain a legal proxy from your nominee. Please contact your bank, broker or
other nominee for more information.
| 2025 PROXY
STATEMENT |
56 |
How will my shares be voted if I submit a proxy
before the Annual Meeting?
Properly executed proxies will be voted in the
manner directed by the stockholder. Any proxies submitted without voting instructions will be voted as follows:
| ● |
FOR the election of each of the nominees as a director of the Company; |
| ● |
FOR the approval, on an advisory basis, of the 2024 compensation of the
Company’s named executive officers; and |
| ● |
FOR the ratification of the selection of Ernst & Young LLP as the Company’s independent
public accountants for the fiscal year ending January 3, 2026. |
As of the date of this Proxy Statement, the Board
knows of no other business that will be presented for consideration at the Annual Meeting. If other proper matters are presented
at the meeting, the proxy holders named in the enclosed form of proxy are authorized to take such actions as they deem appropriate.
If I vote or give my proxy in advance, can I change
my mind?
You can revoke your proxy at any time before
it is voted by giving written notice to the Secretary of the Company, either prior to the meeting (at the Company’s Elgin
Illinois address) or at the meeting if you virtually attend in person. You also can submit a new proxy, which will revoke a prior-dated
proxy.
Why didn’t I receive a printed copy of the
proxy materials?
As permitted by SEC rules, we have elected to
provide access to our proxy materials and 2024 Annual Report online instead of sending all stockholders a full set of printed proxy
materials. We believe that electronic delivery provides you with prompt access to our proxy materials, lowers our costs of printing
and delivering proxy materials, and minimizes the environmental impact of printing paper copies. You should have already received
the Notice of Internet Availability of Proxy Materials containing instructions on how to access the proxy materials and vote. If
you would like to receive a printed copy of our proxy materials, follow the instructions for requesting such materials set forth
on the Notice of Internet Availability of Proxy Materials.
Several members of my family own Middleby stock.
Why didn’t we each receive proxy materials?
SEC rules permit us to deliver one Notice of
Internet Availability of Proxy Materials to a single address that is shared by two or more stockholders. This delivery method,
known as “householding,” can result in significant cost savings. We have delivered only one Notice of Internet Availability
of Proxy Materials to multiple stockholders who share an address unless we received contrary instructions from an affected stockholder
before the mailing date. We will deliver promptly, upon request, a separate copy of the Notice of Internet Availability of Proxy
Materials to any stockholder at a shared address to which a single copy of the notice was delivered. If you prefer to receive separate
copies of the Notice of Internet Availability of Proxy Materials for the upcoming meeting or all future meetings of the stockholders,
contact Broadridge Financial Solutions, Inc. at 866-540-7095 or in writing at Broadridge Financial Solutions, Inc., Householding
Department, 51 Mercedes Way, Edgewood, New York 11717. If you are currently a stockholder sharing an address with another stockholder
and wish to receive only one copy of future Notices of Internet Availability of Proxy Materials for your household for all future
meetings of the stockholders, please contact Broadridge Financial Solutions, Inc. at the above phone number or address.
Who is paying for this proxy solicitation?
This solicitation of proxies is made by the Company,
and the Company is responsible for all associated expenses. Proxies may be solicited on behalf of the Company by directors, officers,
and employees of the Company by mail, telephone, or electronically. The Company will reimburse brokers and others holding common
stock as nominees for their expenses in sending proxy materials to the beneficial owners and obtaining their proxies.
How can I submit a proposal for inclusion in the
Company’s proxy materials for next year’s annual meeting?
Under SEC rules, a stockholder who intends to
present a proposal at the 2026 Annual Meeting and who wishes the proposal to be included in our proxy statement for that meeting
pursuant to Rule 14a-8 under the Exchange Act must submit the proposal in writing to the Secretary of the Company at the Company’s
principal executive offices at 1400 Toastmaster Drive, Elgin Illinois, 60120. The proposal must be received no later than November
28, 2025 (120 days before March 28, 2026, the one-year anniversary of the anticipated mailing date of this Proxy Statement).
How can I submit other proposals and a candidate
for the Board for next year’s annual meeting?
Under our Bylaws, written notice of (i) proposals
intended to be presented by a stockholder at the 2026 Annual Meeting, but that are not intended for inclusion in our proxy statement
for that meeting pursuant to Rule 14a-8, and (ii) nominees for the election of directors intended to be made by a stockholder at
the 2026 Annual Meeting, must be delivered to the Secretary of the Company at the Company’s principal executive offices at
1400 Toastmaster Drive, Elgin, Illinois, 60120 between January 14, 2026, and February 13, 2026. However, if the 2026 Annual
Meeting is called for a date that is not within thirty days before or after May 14, 2026, your proposal or nomination must be received
not later than the close of business on the tenth day following the day on which notice of the date of the 2026 Annual Meeting
was mailed or public disclosure of the date of that annual meeting was made, whichever first occurs. Such advance notice deadline
will also be the deadline for a proposal to be considered “timely” for purposes of Rule 14a-4(c) under the Exchange
Act. To be in proper written form, such a notice must set forth the information prescribed in the Company’s Bylaws.
In addition to satisfying the provisions in our
Bylaws relating to nominations of director candidates, including the deadline for written notice, to comply with the SEC’s
universal proxy rule, stockholders who intend to solicit proxies in support of director nominees other than the Company’s
nominees in compliance with Rule 14a-19 under the Exchange Act, must provide notice that sets forth the information required by
Rule 14a-19 no later than March 15, 2026.
By Order of the Board of Directors
MICHAEL D. THOMPSON
General Counsel and Secretary
Dated: March 28, 2025
| 2025 PROXY
STATEMENT |
57 |
Annex A
Non-GAAP
Financial Measures
The Company supplements its consolidated financial
statements presented on a GAAP basis with the non-GAAP financial information provided in this Proxy Statement to provide investors with
greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its
financial and operational decision-making. The non-GAAP financial measures disclosed by the Company should not be considered a substitute
for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP
and reconciliations from these results should be carefully evaluated. In addition, the non-GAAP financial measures included in this proxy
statement do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies.
The Company believes that the adjusted net earnings
per share measure is useful as a supplement to its GAAP results of operations to evaluate certain aspects of its operations and financial
performance, and its management team primarily focuses on non-GAAP items in evaluating performance for business planning purposes. The
Company also believes that this measure assists it with comparing its performance between various reporting periods on a consistent basis,
as it removes from operating results the impact of items that, in its opinion, do not reflect its core operating performance including,
for example, intangibles amortization expense, impairment charges, restructuring expenses, and other charges which management considers
to be outside core operating results.
The Company believes that free cash flow is an
important measure of operating performance because it provides management and investors a measure of cash generated from operations that
is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, repaying debt and repurchasing
our common stock.
The Company believes that its presentation of these
non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Middleby uses
internally for purposes of assessing its core operating performance. Additional information regarding these non-GAAP financial measures
is available in the Company’s Form 8-K filed with the SEC on February 25, 2025 and in other Company filings with the SEC.
| 2025 PROXY
STATEMENT |
58 |
Reconciliation of Net Earnings Per Share (a GAAP Measure) to Adjusted
Net Earnings Per Share (a Non-GAAP Measure)
| | |
Diluted per share |
| | |
2024
($) | | |
2023
($) | | |
2022
($) | | |
2021
($) | | |
2020
($) | | |
2019
($) | | |
2018
($) | |
| Net earnings | |
| 7.90 | | |
| 7.41 | | |
| 7.95 | | |
| 8.62 | | |
| 3.76 | | |
| 6.33 | | |
| 5.70 | |
| Amortization(1) | |
| 1.32 | | |
| 1.52 | | |
| 1.70 | | |
| 1.46 | | |
| 1.31 | | |
| 1.18 | | |
| 1.10 | |
| Amortization of discount on convertible notes | |
| | | |
| | | |
| | | |
| | | |
| 0.13 | | |
| | | |
| | |
| Restructuring expenses | |
| 0.26 | | |
| 0.26 | | |
| 0.18 | | |
| 0.14 | | |
| 0.22 | | |
| 0.19 | | |
| 0.35 | |
| Acquisition related adjustments | |
| 0.02 | | |
| (0.07 | ) | |
| 0.25 | | |
| 0.07 | | |
| 0.05 | | |
| 0.05 | | |
| 0.10 | |
| Facility consolidation related expenses | |
| 0.02 | | |
| | | |
| | | |
| 0.02 | | |
| 0.06 | | |
| 0.10 | | |
| | |
| Net periodic pension benefit (other than service costs & curtailment) | |
| (0.27 | ) | |
| (0.17 | ) | |
| (0.78 | ) | |
| (0.8 | ) | |
| (0.73 | ) | |
| (0.54 | ) | |
| (0.68 | ) |
| Merger termination fee, net deal costs | |
| | | |
| | | |
| | | |
| (1.59 | ) | |
| | | |
| | | |
| | |
| Curtailment loss | |
| | | |
| | | |
| | | |
| | | |
| 0.27 | | |
| 0.02 | | |
| | |
| Gain on sale of plant | |
| (0.02 | ) | |
| | | |
| | | |
| (0.01 | ) | |
| (0.04 | ) | |
| | | |
| | |
| Impairments | |
| 0.71 | | |
| 1.44 | | |
| | | |
| | | |
| 0.28 | | |
| | | |
| | |
| Charitable support to Ukraine | |
| 0.01 | | |
| 0.01 | | |
| 0.02 | | |
| | | |
| | | |
| | | |
| | |
| Discrete tax adjustments | |
| | | |
| | | |
| | | |
| (0.33 | ) | |
| | | |
| | | |
| | |
| Gain on litigation settlement | |
| | | |
| | | |
| | | |
| | | |
| | | |
| (0.27 | ) | |
| | |
| Former Chairman & CEO transition costs | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 0.18 | | |
| | |
| Income tax effect of pre-tax adjustments | |
| (0.53 | ) | |
| (0.78 | ) | |
| (0.34 | ) | |
| 0.17 | | |
| (0.35 | ) | |
| (0.22 | ) | |
| (0.22 | ) |
| Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) | |
| 0.07 | | |
| 0.08 | | |
| 0.12 | | |
| 0.19 | | |
| | | |
| | | |
| | |
| Adjusted net earnings | |
| 9.49 | | |
| 9.70 | | |
| 9.10 | | |
| 7.94 | | |
| 4.96 | | |
| 7.02 | | |
| 6.35 | |
| (1) |
Includes amortization of deferred financing costs and convertible notes issuance costs. |
| (2) |
Adjusted diluted weighted average number of shares was calculated based on excluding the dilutive effect of shares to be issued
upon conversion of the notes to satisfy the amount in excess of the principal since the company’s capped call offsets the dilutive
impact of the shares underlying the convertible notes. The calculation of adjusted diluted earnings per share excludes the principal
portion of the convertible notes as this will always be settled in cash. |
Reconciliation of Cash Flow from Operating Activities (a GAAP Measure)
to Free Cash Flow (a Non-GAAP Measure)(3)
| | |
2024
($) | | |
2023
($) | | |
2022
($) | | |
2021
($) | | |
2020
($) | |
| Cash flow from operations | |
| 686,816 | | |
| 628,790 | | |
| 332,552 | | |
| 423,399 | | |
| 524,785 | |
| Less: Capital expenditures, net | |
| (46,803 | ) | |
| (85,179 | ) | |
| (67,289 | ) | |
| (40,261 | ) | |
| (20,702 | ) |
| Free cash flow | |
| 640,013 | | |
| 543,611 | | |
| 265,263 | | |
| 383,138 | | |
| 504,083 | |
| (3) |
Amounts in thousands. |
| 2025 PROXY
STATEMENT |
59 |
Reconciliation of Operating Income (a GAAP Measure) to Adjusted
EBITDA (a Non-GAAP Measure)(4)
| | |
2024
($) | | |
2023
($) | | |
2022
($) | | |
2021
($) | | |
2020
($) | | |
2019
($) | | |
2018
($) | |
| Operating Income | |
| 656,188 | | |
| 634,868 | | |
| 639,604 | | |
| 629,992 | | |
| 324,431 | | |
| 514,043 | | |
| 445,966 | |
| Depreciation | |
| 55,609 | | |
| 50,416 | | |
| 44,619 | | |
| 42,681 | | |
| 39,086 | | |
| 37,852 | | |
| 35,782 | |
| Amortization | |
| 64,438 | | |
| 75,051 | | |
| 86,282 | | |
| 75,785 | | |
| 68,961 | | |
| 63,964 | | |
| 59,977 | |
| Restructuring expenses | |
| 14,181 | | |
| 14,134 | | |
| 9,716 | | |
| 7,655 | | |
| 12,375 | | |
| 10,480 | | |
| 19,332 | |
| Facility consolidation related expenses | |
| 920 | | |
| | | |
| | | |
| 993 | | |
| 3,530 | | |
| 5,662 | | |
| | |
| Acquisition related adjustments | |
| 836 | | |
| (3,851 | ) | |
| 13,852 | | |
| 4,186 | | |
| 2,552 | | |
| 2,783 | | |
| 5,823 | |
| Merger termination fee, net deal costs | |
| | | |
| | | |
| | | |
| (90,285 | ) | |
| | | |
| | | |
| | |
| Charitable support to Ukraine | |
| 474 | | |
| 615 | | |
| 967 | | |
| | | |
| | | |
| | | |
| | |
| Stock compensation | |
| 36,151 | | |
| 51,047 | | |
| 58,368 | | |
| 42,330 | | |
| 19,613 | | |
| 8,133 | | |
| 2,497 | |
| Gain on sale of plant | |
| (1,139 | ) | |
| | | |
| | | |
| (763 | ) | |
| (1,982 | ) | |
| | | |
| | |
| Impairments(5) | |
| 38,637 | | |
| 78,114 | | |
| | | |
| | | |
| 15,327 | | |
| | | |
| | |
| Gain on litigation | |
| | | |
| | | |
| | | |
| | | |
| | | |
| (14,839 | ) | |
| | |
| Former Chairman and CEO transition costs | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 10,116 | | |
| | |
| Adjusted EBITDA | |
| 866,295 | | |
| 900,394 | | |
| 853,408 | | |
| 712,574 | | |
| 483,893 | | |
| 638,194 | | |
| 569,377 | |
| (4) |
Amounts in thousands. |
| (5) |
Includes impairment of intangible assets, fixed assets, and assets held for sale. |
| 2025 PROXY
STATEMENT |
60 |
