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For 2014, the 21 companies in our peer group for purposes of NEO benchmarking were:
Acuity Brands, Inc.
AMETEK, Inc.
Briggs & Stratton Corporation
Colfax Corporation
Crane Co.
Donaldson Company, Inc.
Dresser‐Rand Group Inc.
Flowserve Corp.
Harsco Corporation
Hubbell Incorporated
IDEX Corporation
Kennametal Inc.
Lennox International
Lincoln Electric Holdings Inc.
Owens Corning
Rexnord Corporation
Roper Industries Inc.
Snap‐On Incorporated
SPX Corporation
The Timken Co.
Xylem Inc.
Towers Watson benchmarked our executive compensation opportunities using (i) the above
referenced peer group as the primary benchmark for our CEO, Chief Financial Officer and General
Counsel positions and (ii) general industry data from Towers Watson’s Executive Compensation
Database as the primary benchmark for our Chief Operating Officer and Vice President, Corporate
Human Resources positions.
In reviewing and analyzing these data, Towers Watson considered information for each NEO
position with respect to the following elements of compensation:
!
Base salary;
!
Target SVA annual cash incentive;
!
Target total cash compensation (salary and actual annual cash incentive);
!
Grant‐date value of annual long‐term incentives; and
!
Target total direct compensation (sum of target cash and long‐term incentives).
In keeping with the Committee approved methodology, Towers Watson analyzed each element
of target total direct compensation for our NEOs compared to the market median from the two different
data sources. Towers Watson reported on the methodology that it used in its analysis, provided a
summary of its findings, and its observations on our programs relative to the data and market trends in
executive compensation. In connection with this review, Towers Watson also analyzed our annual share
utilization rate and dilution relative to market practice.
The Committee did not review peer group data relating to supplemental benefits and
perquisites in 2014. The Committee’s policy is to review such data every three years and it last did so in
2013.