Moog Proxy - FY2022 - Host - Flipbook - Page 20
Other Benefits and Perquisites
Retirement Programs
The Company believes retirement plans are a key element in attracting and retaining employees at all levels of the organization.
The Company maintains both defined benefit and defined contribution plans directly in the U.S. and via various subsidiaries
outside the U.S. Employees hired in the U.S. after January 1, 2008 are covered under a defined contribution plan. Each NEO,
excluding Mr. Roche, participates in the U.S. defined benefit retirement plan and all participate in either a defined benefit or
defined contribution supplemental plan. Mr. Roche also has deferred benefits in an Ireland defined benefit plan. These plans are
described in more detail along with officers’ other pension benefits in the sections under Pension Benefits beginning on page 32.
The value of pension benefits for each NEO can be found in the 2022 Pension Benefits Table on page 35.
Medical Coverage
The NEOs participate in the same health insurance programs available to all employees. In addition, our executive officers have
coverage under an enhanced medical insurance policy that generally covers all unpaid healthcare expenses deductible under
IRS guidelines in the U.S. or receive equivalent expense reimbursements outside the U.S. This supplemental coverage plan was
established in accordance with industry practice for senior executives. We believe that conforming to industry standards aids in
executive retention.
Vacation, Disability and Group Life Insurance
NEOs participate in the same vacation, disability and life insurance programs as all other Moog employees. Life insurance
coverage for employees is based upon a multiple of salary, with the multiple for the NEOs generally being two and a half times
annual salary.
Termination Benefits
NEOs and other members of executive management are provided termination benefit agreements that are triggered under
certain circumstances, including upon a termination of employment in connection with a change in control. Under these
agreements, executive officers receive salary continuance for up to three years based upon length of service; STI on a prorated
basis in the year of termination; outplacement services; and medical coverage, life and disability benefits and club dues for one
year. These agreements are designed to retain executives and provide continuity of management in the event of a change in
control. The Company believes that these severance and change in control benefits are required to attract and retain executive
talent in a marketplace where such benefits are commonly offered. For additional information, refer to the section on Potential
Payments Upon Termination or Change in Control beginning on page 36.
Other Benefits
The Company reimburses fees for membership in certain private clubs so that the Company’s executives have these facilities
available for entertaining customers, conducting Company business and fulfilling community responsibilities.
The Process Used to Determine Compensation
Base Salary
The process for setting annual base salaries is one whereby the CEO makes recommendations for all other officers' merit-based
salary increases and, occasionally, base salary adjustments needed to position an executive officer appropriately against market
benchmarks. The Executive Compensation Committee approves or adjusts those recommendations for a final determination and
determines the base salary adjustment for the CEO. As part of this process, the CEO prepares a performance appraisal for each
executive officer, including himself, which is reviewed in detail by the Executive Compensation Committee. These performance
appraisals take into consideration:
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the outcomes achieved by the business unit or functional area for which the officer is responsible;
the conduct and contribution of the officer and the organization he/she manages in achieving overall Company results;
and
the officer’s achievements in developing organizational strength for the future.