Executives-Incentive Alignment
Executive Compensation, Use of Stock, and Pay for Performance
For Henry Schein, the executive compensation program consists of four main parts: Base Salary, Annual Incentive Compensation, Equity-Based Reward, and Other Benefits and Perquisites. See below the detailed descriptions from the Henry Schein Inc. Proxy Statement 2014.
For Henry Schein, the executive compensation program consists of four main parts: Base Salary, Annual Incentive Compensation, Equity-Based Reward, and Other Benefits and Perquisites. See below the detailed descriptions from the Henry Schein Inc. Proxy Statement 2014.
As you can see above, Henry Schein only gives stock in addition to the base salary if individual goals made by executives are met and EPS goes up. Also, CEO Stan Bergman, see above, has different performance requirements. As Chairman of the Board, he is in charge of the performances of all board members and the company. Henry Schein wants to make sure that their officers understand the importance of their individual performance, as well as it's impact on the company overall. From the 2014 Proxy Statement, "The Company’s executive officer compensation program is designed to attract and retain the caliber of officers needed to ensure the Company’s continued growth and profitability, and to reward them for their performance, the Company’s performance and for creating long term value for stockholders." Henry Schein expects its executives to create long term value for its shareholders and growth for the company, rather than focus on short term value for the shareholders. Schein also expects to retain its executives if they meet the caliber of performance that Schein is looking for.
Peer Groups
Henry Schein Inc. uses peer groups as a measure of its performance to the competitive market.
Henry Schein defines its peer groups with the following considerations:
-Standard Industrial Classification or SIC Codes
-Global Industry Classification System or GICS
-Companies identified by Hoover's Inc.
-Companies listed as peers by the current list of peer groups
-Company size, including, among other things size by market capitalization, revenue and number of employees.
Henry Schein's Compensation Committee uses this data to determine the base salary, target annual incentive compensation and equity-based awards for each executive. With this data, Henry Schein can determine where in the market it wants to have the executives be paid: more, less, or at the market average. Relative to the market, the Compensation Committee intends to base executive compensation at the median in the market.
CEO Ownership
CEO and Chairman of the Board, Stanley M. Bergman has been a part of Henry Schein Inc. since 1980. Bergman has been a director since 1982, and Chairman and CEO since 1989.
Mr. Bergman has served in the following positions at Henry Schein Inc.:
-Vice President of Finance and Administration (1980-1985)
-Executive Vice President (1985-1989)
-President (1989-2005)
Chairman of the Board, and Chief Executive Officer (1989-Present)
Mr. Bergman brings leadership and management experience to the Board of Directors. "Mr. Bergman is a well-known, highly regarded leader in the global health care industry. He has expansive knowledge of the health care industry and macro-economic global conditions, maintains strategic relationships with chief executives and other senior management in the health care industry throughout the world and brings a unique and valuable perspective to the Board of Directors" (Henry Schein Inc. Proxy Statement 2014). Bergman has brought Henry Schein Inc. from sales of $600 million in 1995 to $9.6 Billion in 2013.
Clawback Policy
In 2013, Henry Schein Inc. approved a clawback policy in which the company has the right to recoup from the participant, including the named Executive Officers, and the participant has to repay the company an amount equal to the fair-market value of the restricted shares if the participant engages in a competitive activity, violates a non-disclosure, non-soliciation of employees or another restrictive content between the participant and the company.
Peer Groups
Henry Schein Inc. uses peer groups as a measure of its performance to the competitive market.
Henry Schein defines its peer groups with the following considerations:
-Standard Industrial Classification or SIC Codes
-Global Industry Classification System or GICS
-Companies identified by Hoover's Inc.
-Companies listed as peers by the current list of peer groups
-Company size, including, among other things size by market capitalization, revenue and number of employees.
Henry Schein's Compensation Committee uses this data to determine the base salary, target annual incentive compensation and equity-based awards for each executive. With this data, Henry Schein can determine where in the market it wants to have the executives be paid: more, less, or at the market average. Relative to the market, the Compensation Committee intends to base executive compensation at the median in the market.
CEO Ownership
CEO and Chairman of the Board, Stanley M. Bergman has been a part of Henry Schein Inc. since 1980. Bergman has been a director since 1982, and Chairman and CEO since 1989.
Mr. Bergman has served in the following positions at Henry Schein Inc.:
-Vice President of Finance and Administration (1980-1985)
-Executive Vice President (1985-1989)
-President (1989-2005)
Chairman of the Board, and Chief Executive Officer (1989-Present)
Mr. Bergman brings leadership and management experience to the Board of Directors. "Mr. Bergman is a well-known, highly regarded leader in the global health care industry. He has expansive knowledge of the health care industry and macro-economic global conditions, maintains strategic relationships with chief executives and other senior management in the health care industry throughout the world and brings a unique and valuable perspective to the Board of Directors" (Henry Schein Inc. Proxy Statement 2014). Bergman has brought Henry Schein Inc. from sales of $600 million in 1995 to $9.6 Billion in 2013.
Clawback Policy
In 2013, Henry Schein Inc. approved a clawback policy in which the company has the right to recoup from the participant, including the named Executive Officers, and the participant has to repay the company an amount equal to the fair-market value of the restricted shares if the participant engages in a competitive activity, violates a non-disclosure, non-soliciation of employees or another restrictive content between the participant and the company.