Sensient Announces Changes in Pay Practices
MILWAUKEE -- October 21, 2013
Sensient Technologies Corporation (NYSE: SXT) announced today that its Board
of Directors has approved changes to the Company’s annual incentive
compensation plan and long term incentive plan for elected officers. The
changes, which are in response to shareholder feedback, are intended to create
an enhanced linkage of executive pay and company performance.
Under the revised compensation practices, 50% of Sensient’s equity grants to
elected officers in 2013 will consist of performance units, the ultimate value
of which will be determined based on the achievement of pre-established
performance goals. For the 2013 grant, the performance goals will be
determined based on performance over a two year period compared to the
weighted average of two performance metrics – EBIT growth (70% weight) and
return on invested capital (30% weight). Prior to these changes, the Company’s
equity grants have historically consisted of time vested restricted shares.
In addition to introducing performance based equity awards, Sensient has also
made significant changes to its annual cash incentive plan for elected
corporate officers. Beginning in 2014, the annual incentive plan for elected
corporate officers will be determined and paid based on a weighted average of
the Company’s achievement of three performance goals – earnings per share (50%
weight), gross profit as a percentage of revenue (30% weight) and cash flow
These changes to the Company’s compensation practices are in response to
shareholder feedback received during meetings that took place during the 2013
proxy season. During these discussions, shareholders indicated a desire to see
more meaningful weight assigned in the Company’s incentive programs to targets
other than earnings per share. Shareholders also expressed a desire to see a
portion of the Company’s equity awards tied to achievement of pre-established
performance goals so that the ultimate compensation realized by an executive
is more closely tied to company performance.
Sensient Technologies Corporation is a leading global manufacturer and
marketer of colors, flavors and fragrances. Sensient employs advanced
technologies at facilities around the world to develop specialty food and
beverage systems, cosmetic and pharmaceutical systems, inkjet and specialty
inks and colors, and other specialty and fine chemicals. The Company’s
customers include major international manufacturers representing most of the
world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.
Sensient Technologies Corporation
Dick Hobbs, 414-347-3706
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