NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
Notice is hereby given that the annual meeting of stockholders of TransDigm Group Incorporated, a Delaware corporation, will be held at 1301 East Ninth Street, Suite 3000, Cleveland, Ohio 44114, on Tuesday, July 12, 2022, at 9:00 a.m., Eastern time, for the following purposes:
- To elect 11 directors, each to serve a one-year term and until a successor has been duly elected and qualified;
- To ratify the selection of Ernst & Young LLP as TransDigm's independent registered public accounting firm for TransDigm's fiscal year ending September 30, 2022;
- To conduct an advisory vote ("say on pay") on compensation paid to TransDigm's named executive officers; and
- To transact such other business as may properly come before the meeting.
Only stockholders of record at the close of business on May 18, 2022 will be entitled to notice of and to vote at the meeting or any adjournment of the meeting.
Your vote is important. Whether or not you plan to attend the annual meeting, please vote on the Internet, by phone or by completing and returning the enclosed proxy card.
By order of the Board of Directors,
Halle Martin
Secretary
June 1, 2022
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE
STOCKHOLDERS MEETING TO BE HELD ON JULY 12, 2022.
The Proxy Statement and Proxy Card are available at
http://www.transdigm.com/investor-relations/annual-proxy
PROXY STATEMENT
ANNUAL MEETING OF STOCKHOLDERS
To Be Held July 12, 2022
TABLE OF CONTENTS
PROXY STATEMENT SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1 |
CORPORATE GOVERNANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Role of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Composition of the Board and its Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Audit Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Compensation Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Nominating & Corporate Governance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Executive Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Corporate Governance Policies and Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Board Oversight of Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Annual Board and Committee Self-Evaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Transactions with Related Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Reporting and Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Stockholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Communications with the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
DIRECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Nominees for Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Director Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
EXECUTIVE OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
EXECUTIVE COMPENSATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Compensation Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Compensation Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Compensation Committee Interlocks and Insider Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Summary Compensation Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Grant of Plan Based Awards in Last Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Outstanding Equity Awards at Fiscal Year-End . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Option Exercises in Last Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Potential Payments Upon Termination or Change in Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Employment Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 2021 CEO Pay Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
PROPOSALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Proposal 1 - Election of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Proposal 2 - Ratification of Appointment of Independent Registered Public Accounting Firm . . . 48 Proposal 3 - Advisory Vote on Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Other Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Audit Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Security Ownership of Certain Beneficial Holders and Management . . . . . . . . . . . . . . . . . . . . . . . . . 52 Delinquent Section 16(a) Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 General Information Regarding the 2022 Annual Meeting of Stockholders . . . . . . . . . . . . . . . . . . . . 54
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PROXY STATEMENT SUMMARY
This summary highlights the proposals to be acted upon, as well as selected executive compensation and corporate governance information described in more detail in this Proxy Statement.
2022 Annual Meeting of Stockholders
Meeting site: | Date and time: |
1301 East Ninth Street, Suite 3000 | Tuesday, July 12, 2022 |
Cleveland, Ohio 44114 | 9:00 a.m., Eastern time |
The record date for the annual meeting is May 18, 2022. Only stockholders of record as of the close of business on this date are entitled to vote at the annual meeting.
Recommendation of | ||||
Proposal | the Board | |||
1. | Election of directors | FOR each of the nominees | ||
2. | Ratification of appointment of independent | FOR | ||
registered public accounting firm | ||||
3. | Advisory vote to approve executive | FOR | ||
compensation | ||||
You may vote online prior to the meeting by visiting www.proxyvote.comor calling 1-800-690-6903 and, in each case, entering the control number found in your notice of internet availability of proxy materials or, if you requested printed copies of the proxy materials, by phone or by mail. You may also vote in person at the annual meeting. For more detailed information, see the section entitled "Voting Procedures" on page 57.
2021 Business Highlights
FY 2021 (1) | FY 2020 | |||
Revenue | $4.8 billion | - 6% | $5.1 billion | |
Net Income from Continuing Operations | $681 million | +4% | $653 million | |
GAAP Earnings Per Share | $10.41 per share | $8.14 per share | ||
EBITDA As Defined (2) | $2.2 billion | -4% | $2.3 billion | |
Adjusted Net Income (2) | $708 million | -15% | $829 million | |
Adjusted Earnings Per Share (3) | $12.13 per share | $14.47 per share |
- FY 1993 - 2021 Revenue compound annual growth rate (CAGR) 18%
- FY 1993 - 2021 EBITDA As Defined CAGR 21%
- EBITDA as Defined Margin expansion from 20% to almost 50% pre-pandemic
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Transdigm Group Incorporated published this content on 01 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2022 12:51:04 UTC.