Simpson Manufacturing Company, Inc. · NYSE:SSD
Simpson Manufacturing — Shareholder Meeting (April 2017)
16 slides from Simpson Manufacturing's shareholder meeting presentation, Apr 20, 2017
Slide 1: Investor Presentation: 2017 Annual Meeting
www.simpsonmfg.com Investor Presentation: 2017 Annual Meeting
Slide 2: Important Additional Information
www.simpsonmfg.com Important Additional Information 2 This presentation may be deemed to be solicitation material in respect of the solicitation of proxies from shareholders of Simpson Manufacturing Co., Inc. (the “Company” or “Simpson”) for its 2017 annual meeting of shareholders (the “2017 Annual
Slide 3: Safe Harbor Statement
www.simpsonmfg.com Safe Harbor Statement 3 This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, based on numerous assumptions and subject to risks and uncertainties, such as statements regarding prospective performance an
Slide 4: Shareholder Feedback has Shaped Recent Changes
www.simpsonmfg.com Compensation Practices Governance Practices Board Structure Shareholder Feedback has Shaped Recent Changes » During 2015, 2016 and early 2017, the Board of Directors (the “Board”) and management of the Company conducted outreach to a majority of our shareholders to seek feedback o
Slide 5: Company Overview
www.simpsonmfg.com » Composed of various materials including steel, chemicals and carbon fiber. U sed to repair, protect and strengthen concrete, brick or mortar structures » Produce and market over 2,000 products » T ypically made of steel and are used primarily to strengthen, support and connect w
Slide 6: Strong Business Drives Shareholder Value
www.simpsonmfg.com Strong Business Drives Shareholder Value 6 Dividends Per Share 1 EPS A Strong Unique Business Model… $0.40 $0.50 $0.50 $0.50 $0.55 $0.62 $0.70 2010 2011 2012 2013 2014 2015 2016 Enables Us to Deliver Value to shareholders The Board employs a balanced capital allocation strategy th
Slide 7: Thoughtful Deployment of Capital
www.simpsonmfg.com Thoughtful Deployment of Capital 7 Our capital allocation strategy is thoughtfully constructed to ensure a balance between capital expenditures, acquisitions, dividends and share repurchases, with a focus on sustainable value creation Dividend and Share Repurchase Program CapEx an
Slide 8: 2016 Performance Reflects our Disciplined Capital Allocation Strategy
www.simpsonmfg.com 2016 Performance Reflects our Disciplined Capital Allocation Strategy 8 Compensation Peer Group represents a peer group index calculated based on 2016 weighted average total shareholder returns of the updated p eer group including: AAON, Inc., PGT, Inc., Continental Building Produ
Slide 9: Summary of Shareholder Feedback and Executive Compensation Program Changes
www.simpsonmfg.com Summary of Shareholder Feedback and Executive Compensation Program Changes 9 What We Heard How the Board Responded Implementation Philosophy » Benchmark to the median x Revised benchmarking practice. Pay positioning strategy amended to target the 50th percentile of the peer group
Slide 10: Evolution of CEO Compensation Program in Response to Shareholder Feedback
www.simpsonmfg.com Denotes implementation of compensation program change Evolution of CEO Compensation Program in Response to S hareholder Feedback Long - Term Incentive 2016 Prior to Changes 50% Performance RSUs » One - year operating profit to determine grant » Vesting: 25% on grant date and 25% o
Slide 11: 2017 EOCPS Changes for NEOs
www.simpsonmfg.com 2017 EOCPS Changes for NEOs » Adopted a compensation philosophy to target median pay for median performance » Lengthened performance period ― 50 % of target EOCPS will be based on annual operating income ― 50% will remain based on quarterly operating income » Total EOCPS payout wi
Slide 12: CEO Long-Term Equity Incentives 2016: Transition Year
www.simpsonmfg.com CEO Long - Term Equity Incentives 2016: Transition Year 12 PSUs (50%) RSUs (50%) » Rationale: Rewards executives for achieving core financial goals and incentivizes long - term stock price appreciation » Metric: Amended upon approval of recent compensation program changes. Relativ
Slide 13: CEO Long-Term Equity Incentives 2017: Transition Year
www.simpsonmfg.com CEO Long - Term Equity Incentives 2017: Transition Year 13 » Rationale: Rewards executives for achieving core financial goals and incentivizes long - term stock price appreciation » Metric: Achievement of net sales growth target which is then contingent upon 3 - year Revenue Growt
Slide 14: CEO Long-Term Equity Incentives 2018: Fully Implemented Changes
www.simpsonmfg.com CEO Long - Term Equity Incentives 2018: Fully Implemented Changes 14 PSUs (80%) » Rationale: Rewards executives for achieving core financial goals and incentivizes long - term stock price appreciation » Metric: Contingent upon 3 - year Revenue Growth and ROIC, weighted equally at
Slide 15: Thoughtful and Robust Director Refreshment Process
www.simpsonmfg.com Thoughtful and Robust Director Refreshment Process 15 Michael Bless (Nominee ) CEO Century Aluminum Company • Review Board composition against our strategic priorities • Board self assessment and third party corporate governance evaluation • Formalization of director candidate sea
Slide 16: Diverse and Highly Qualified Board
www.simpsonmfg.com Karen Colonias President and CEO Simpson Manufacturing James Andrasick Former CEO Matson Navigation Celeste Volz Ford Founder & CEO Stellar Solutions Diverse and Highly Qualified Board 16 Peter Louras , Jr . Chairman Retired Group VP The Clorox Company Gary Cusumano Former Chairma
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