12 23 2021 Moog Proxy - FY2021 - FINAL - Flipbook - Page 18
Independent Consultant
The Executive Compensation Committee selects and retains the services of Korn Ferry, our compensation consultant, to provide
professional advice on the Company’s executive officer compensation. Korn Ferry is retained directly by the Executive
Compensation Committee and works directly with the Executive Compensation Committee’s chairman. Korn Ferry advises on
the design of compensation arrangements and provides an independent market assessment of peer companies, using Korn
Ferry’s Job Evaluation methodology and general industry compensation and practices.
The compensation consultant works with management to collect information, to solicit management’s input and to understand
Moog’s plans, goals and actual performance. The consulting relationship is reviewed by the Executive Compensation Committee
annually to determine its satisfaction with the services and advice provided by the compensation consultant.
For additional information about the services provided by Korn Ferry and its independence, refer to the Executive Compensation
Committee section under Corporate Governance, beginning on page 6.
Market Assessment
The Basis of Comparison
As part of their review process, Korn Ferry makes comparisons of the Company’s compensation program to two groups of
companies. The first comparison is with Korn Ferry’s proprietary Industrial Executive Compensation Report. The second
comparison is with a group of seventeen companies whose businesses are similar to Moog’s and whose revenues are
reasonably comparable. Korn Ferry reviews this peer group each year and recommends changes where appropriate.
One change to the peer group was made in fiscal 2021; Cubic Corporation was removed after it was acquired by private equity
firms Veritas Capital and Evergreen Coast Capital. Cubic Corporation is no longer publicly traded.
Cubic Corporation was replaced by ITT Inc., which was selected on the basis of its operations through three segments: Motion
Technologies, Industrial Process and Connect & Control Technologies. Through these segments, ITT Inc. serves customers in
various industries including industrial, aerospace and defense, medical and oil & gas markets and has revenues that are broadly
comparable to that of Moog and members of the peer group.
The full list of peers for fiscal 2021 is shown below:
AAR CORP.
ITT Inc.
Aerojet Rocketdyne Holdings, Inc.
Kaman Corporation
AMETEK, Inc.
Regal-Beloit Corporation
Barnes Group Inc.
Spirit AeroSystems Holdings, Inc.
Crane Co.
Teledyne Technologies Incorporated
Curtiss-Wright Corporation
TransDigm Group Incorporated
HEICO Corporation
Triumph Group, Inc.
Hexcel Corporation
Woodward, Inc.
IDEX Corporation
Direct Compensation and Components of the Executive Compensation Program
Base Salary
Both the Executive Compensation Committee and the Company use Korn Ferry’s Job Evaluation methodology for professional
roles, including its NEOs. The Korn Ferry’s Job Evaluation methodology is an analytical, factor-based scheme that measures the
relative importance of jobs by assigning them points within an organization. Each NEO has an evaluation score that is used to
benchmark compensation. Korn Ferry provides annual peer-company salary data, as well as data from their wider executive
compensation survey. This information provides the basis for determining a competitive base salary for each position. NEOs’
base salaries are reviewed annually, and adjustments are based on a comparison with market benchmarks, time in position and
individual job performance.
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