SEC Filings

DEF 14A
RELIANCE STEEL & ALUMINUM CO filed this Form DEF 14A on 04/05/2019
Entire Document
 

the industrial and manufacturing companies in this peer group are not impacted at all, or to a lesser degree than Reliance, by fluctuations in metal pricing.

 

 

 

 

 

AGCO Corporation

    

Genuine Parts Company

    

Parker-Hannifin Corporation

AK Steel Holding Corporation

 

Illinois Tool Works Inc.

 

Steel Dynamics, Inc.

Allegheny Technologies Incorporated

 

Ingersoll-Rand plc

 

Terex Corporation

Commercial Metals Company

 

MRC Global Inc.

 

United States Steel Corporation

Cummins Inc.

 

Navistar International Corporation

 

W.W. Grainger, Inc.

Dover Corporation

 

Nucor Corporation

 

WESCO International, Inc.

Eaton Corporation plc

 

PACCAR Inc.

 

 

Analysis of 2018 Company and Executive Compensation Peer Group Compensation

In 2018, the Compensation Committee extensively analyzed the Company’s financial statements, and stock market data of the Company and the most current available executive compensation peer group data. Consistent with the Company’s philosophy of pay-for-performance, the Compensation Committee also considered the total direct compensation (base salary, annual cash incentive award and equity awards) and retirement plan benefits of the NEOs as compared to comparable officers in the executive compensation peer group.

Compared to the executive compensation peer group:

·

the Company ranked at the 50th percentile for revenues in 2018;

·

the Company’s revenue growth ranked at the 73rd percentile in 2018 and 72nd percentile for the five-year period ended December 31, 2018;

·

the Company’s pretax income margin ranked at the 49th percentile in 2018; and

·

the Company’s return on total assets ranked at the 71st percentile in 2018 and 51st percentile for the five-year period ended December 31, 2018.

Based on information provided by the independent compensation consultant, the Compensation Committee found in 2018 that the target total direct compensation of our former CEO and former COO approximated the median of the chief executive officers and chief operating officers in our executive compensation peer group, and the target total direct compensation of our other NEOs (excluding the CEO and COO) approximated the 70th percentile of the comparable executive officers in our executive compensation peer group in 2017 (the most recent full year available). 

Internal Pay Equity

The Compensation Committee broadly considers internal pay equity when setting compensation levels for our executives in order to foster a team culture among the executive officers. Our executive compensation program uses the same compensation components for our NEOs, with a few exceptions. Our CEO receives (and our former CEO received) 80% of his long-term equity incentive award in performance-based restricted stock units and the remaining 20% in service-based restricted stock units, while the other NEOs receive 60% of their long-term equity incentive award in performance-based restricted stock units and the remaining 40% in service-based restricted stock units. In 2019, our CFO (“Chief Financial Officer”) received 80% of her long-term equity incentive award in performance-based restricted stock units and the remaining 20% in service-based restricted stock units in recognition of her performance and value to the Company and to encourage her retention.  Our annual cash incentive award program provides all NEOs with the same target annual cash incentive award opportunity of 150% of their respective base salaries based on identical performance objectives.

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