Moog Proxy - FY2022 - Host - 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.
The Executive Compensation Committee also utilized the services of FW Cook, a separate independent professional
compensation consulting firm, to assist and guide the Executive Compensation Committee in the review of the Company's
overall incentive plan designs.
For additional information about the services provided by Korn Ferry and FW Cook and their respective independence, refer to
the Executive Compensation Committee section under Corporate Governance beginning on page 7.
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.
There were no changes made to the peer group in fiscal 2022. The full list of peers for fiscal 2022 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
Competitive Analysis of Total Direct Compensation
Each year, the Executive Compensation Committee conducts a market assessment to compare the compensation of the
Company’s NEOs to that of executives in comparable positions. The analysis is based upon current fiscal year base salary, a
pro-forma STI value reflective of average awards over the last five years for the positions listed and current fiscal year grant date
LTI values.
The market assessment used by the Executive Compensation Committee of the Board relies on the following considerations:
•
The CEO and CFO market data for base salary, TCC and TDC, which is a 50/50 mix of Moog’s peer group and data
from the Korn Ferry General Market Executive Compensation Report. For the other NEOs, it is drawn from the Korn
Ferry survey data only. This approach widens the number of companies used for comparative purposes, thereby
reducing the impact that individual changes within the peer group may have.
•
Where peer group data is used, it has been taken on a like-for-like basis. The CEO and CFO are matched to equivalent
peer company roles. For the Korn Ferry survey, like-for-like data is used with equivalent roles (CEO, CFO, Division
Head). The survey data also uses Korn Ferry proprietary job evaluation system scores as a further means of ensuring
the comparisons are accurate.
•
Rather than comparing the value of the individual elements of compensation to market, the cumulative position is
shown, so that the competitiveness of each element can be seen as they are combined.
This assessment, amongst other considerations, is used by the Executive Compensation Committee when determining NEO
compensation.
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