Proxy Statement (Form DEF 14A)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
(Amendment No. )
Filed by the Registrant ☒
Filed by a party other than the Registrant ☐
Check the appropriate box:
☐ Preliminary Proxy Statement
☐Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
☒ Definitive Proxy Statement
☐ Definitive Additional Materials
☐ Soliciting Material under §240.14a-12
Bruker Corporation
(
(
Payment of Filing Fee (Check all boxes that apply):
☒ No fee required.
☐ Fee paid previously with preliminary materials.
☐ Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.
Proxy Statement
Innovation with Integrity
(978) 663-3660
Dear Stockholder:
On behalf of the Board of Directors and management of
The Notice of Annual Meeting of Stockholders and Proxy Statement, which describe the formal business to be conducted at the meeting, and Proxy Card accompany this letter.
Our 2025 Annual Meeting of Stockholders will be conducted exclusively via the Internet as a virtual web conference. There will not be a physical meeting location, and stockholders will not be able to attend the Annual Meeting physically in person. However, you can attend the Annual Meeting online, vote your shares during the online meeting and submit questions during the online meeting by visiting the above-mentioned website.
Pursuant to certain rules of the
All stockholders are invited to attend the Annual Meeting. Whether or not you attend the Annual Meeting, you are urged to vote as soon as possible. You may vote over the Internet prior to the Annual Meeting or virtually at the Annual Meeting, by telephone, or, if you requested printed copies of our proxy materials, by completing, dating and returning a Proxy Card.
Please review the instructions on the Notice or on the Proxy Card regarding your voting options. Regardless of the number of shares you own, your careful consideration of, and vote on, the matters before the stockholders is important.
I look forward to your participation and thank you for your continued support.
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Sincerely, |
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Chairman, President and Chief Executive Officer |
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Our Stockholders:
Notice is hereby given that the 2025 Annual Meeting of the Stockholders of
The Board of Directors has fixed the close of business on
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By order of the Board of Directors |
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Chairman, President and Chief Executive Officer |
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IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON
This Proxy Statement and the accompanying Annual Report are available electronically at:
https://ir.bruker.com/financial-info/annual-meeting-materials/.
BRUKER CORPORATION
2025 ANNUAL MEETING OF STOCKHOLDERS PROXY STATEMENT TABLE OF CONTENTS
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GENERAL INFORMATION ABOUT THE 2025 ANNUAL MEETING AND VOTING MATTERS |
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Nominees for Election to a Three-Year Term Expiring at the 2028 Annual Meeting |
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Directors Continuing in Office until the 2026 Annual Meeting |
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Directors Continuing in Office until the 2027 Annual Meeting |
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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT |
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Employment Contracts, Termination of Employment and Change in Control Arrangements |
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BRUKER CORPORATION
PROXY STATEMENT
We are furnishing this Proxy Statement in connection with the solicitation of proxies by our Board of Directors, or Board, for use at our 2025 Annual Meeting of Stockholders, or the 2025 Annual Meeting, to be held on
Throughout this Proxy Statement, the terms "we," "us," "our" and "Bruker" refer to
GENERAL INFORMATION ABOUT THE 2025 ANNUAL MEETING AND VOTING MATTERS
The 2025 Annual Meeting will be conducted as a virtual meeting of stockholders. We will host the 2025 Annual Meeting live online via webcast. You will be able to attend the 2025 Annual Meeting online, vote your shares online during the 2025 Annual Meeting and submit your questions online during the 2025 Annual Meeting by visitingwww.virtualshareholdermeeting.com/BRKR2025.There will not be a physical meeting location, and you will not be able to attend the 2025 Annual Meeting physically in person. The webcast will start at
Please go towww.virtualshareholdermeeting.com/BRKR2025before the start of the meeting for instructions on how to attend and participate online. If you encounter any difficulties accessing the virtual meeting during the check-in or meeting time, there will be a toll-free number and international number available onwww.virtualshareholdermeeting.com/BRKR2025. Technicians will be ready to assist you with any technical difficulties you may have, beginning 15 minutes prior and through the conclusion of the meeting. You will have the ability to test the system before the 2025 Annual Meeting starts.
The holders of a majority in interest of all of our Common Stock, par value
A description of the voting requirements and related effect of abstentions and broker non-votes on each item proposed for stockholder action is as follows:
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Proposal |
Voting Options |
Board Recommendation |
Vote Required to |
Effect of Abstentions, |
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Item 1 -Election of Four |
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"For" all nominees;
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"Withhold" for all nominees;
or ■
"Withhold" from one or more nominees
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"For" all nominees |
Plurality: the individuals who |
No impact on election outcome |
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Item 2 -Approval on an |
"For," "Against," or "Abstain" |
"For" |
Majority of shares present and |
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Abstentions are treated as votes "against"
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Broker non-votes have no effect
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Item 3- Ratification of the |
"For," "Against," or "Abstain" |
"For" |
Majority of shares present and |
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Abstentions are treated as votes "against"
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There are no broker non-
votes since brokers, banks or other nominees may vote customers' shares in their discretion |
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Item 4- Approval of the adoption of the |
"For," "Against," or "Abstain" |
"For" |
Majority of shares present and |
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Abstentions are treated as votes "against"
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Broker non-votes have no effect
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Bruker Proxy Statement 2025 |
Any proxy that is voted according to the instructions included in the Notice or on the Proxy Card will be voted in the manner instructed by the stockholder, and if Proxy Cards are signed and returned but no instructions are given, the shares represented thereby will be voted "FOR" all nominees for director in Proposal No. 1, and "FOR" approval of Proposal Nos. 2, 3, and 4. In addition, if other matters come before the meeting, the persons named in the accompanying proxy will have discretion to vote on those matters in accordance with their best judgment. Stockholders of record may revoke their proxies by attending the 2025 Annual Meeting online and virtually casting their votes or by giving written notice of revocation to the Secretary of Bruker at any time before the proxy is exercised. Please note, however, that if your shares are held of record by a broker, bank or nominee and you wish to vote at the meeting, you will not be permitted to vote at the meeting online unless you first obtain a proxy issued in your name from the record holder.
If your shares are held in the "street name" of a broker or other nominee, the broker or nominee may not be permitted to exercise voting discretion with respect to certain of the proposals to be acted upon. If the broker or nominee is not given instructions as to how to vote such shares, the broker has authority to vote those shares for or against "routine" matters, such as Proposal No. 3. Brokers cannot vote on their customers' behalf on "non-routine" matters such as Proposals No. 1, 2, and 4. If you do not provide voting instructions for each of these proposals, this will result in a "broker non-vote" with respect to the matters for which you did not provide voting instructions. If the brokerage firm lacks discretionary voting power with respect to an item that is not a routine matter and you do not provide voting instructions, those shares will be counted for purposes of establishing a quorum to conduct business at the 2025 Annual Meeting, but will not be counted for purposes of determining whether stockholder approval of the particular matter has been obtained.
We will bear the cost of any proxy solicitation. Although we expect that the solicitation will be primarily by mail and e-mail, regular employees or our representatives (none of whom will receive any extra compensation for their activities) may also solicit proxies by telephone or in person and arrange for brokerage houses and other custodians, nominees and fiduciaries to send proxies and proxy materials to their principals at our expense.
Our principal executive offices are located at
Record Date andVoting Securities
Only stockholders of record at the close of business on
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Bruker Proxy Statement 2025 |
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PROPOSAL NO. 1
ELECTION OF DIRECTORS
Our Restated Certificate of Incorporation provides that our Board will consist of three classes of directors with overlapping three-year terms. One class of directors is to be elected each year for a three-year term. Directors are assigned to each class in accordance with a resolution or resolutions adopted by the Board, each class consisting, as nearly as possible, of one-third the total number of directors. There are currently 10 members of our Board, consisting of three Class II directors serving terms expiring at our Annual Meeting of Stockholders in 2026, three Class III directors serving terms expiring at the 2027 Annual Meeting, and four Class I directors serving terms expiring at our Annual Meeting of Stockholders in 2025. The four current Class I directors whose terms expire at our 2025 Annual Meeting of Stockholders are
The first proposal on the agenda for the 2025 Annual Meeting is the election of
Unless marked otherwise, proxies received will be votedFORthe election of each of the nominees as director. If any nominee is unwilling or unable to serve as a nominee for director at the time of the 2025 Annual Meeting, the proxies may be voted for a substitute nominee who will be designated by the present Board to fill such vacancy. Alternatively, if no such nominee is designated, a vacancy will be created in Class I. The Board has no reason to believe that any of the nominees will be unwilling or unable to serve if elected as a director.
The Board of Directors recommends a vote FOR the election of
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Bruker Proxy Statement 2025 |
CORPORATE GOVERNANCE
Certain InformationRegarding Directors and Nominees
The biographies of the nominees and each of our continuing directors are below and include the experiences, qualifications, attributes or skills that caused the Board to determine that the person should serve as a director of Bruker.
Nominees for Election to a Three-Year Term Expiring at the 2028 Annual Meeting
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Age 67 |
Director Since 2020 |
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Age 65 |
Director Since 1991 |
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Dr. |
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Age 67 |
Director Since 2015 |
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Bruker Proxy Statement 2025 |
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Age 67 |
Director Since 2007 |
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Directors Continuing in Office until the 2026 Annual Meeting
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Age 70 |
Director Since 2016 |
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Age 70 |
Director Since 2015 |
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Age 58 |
Director Since 2025 |
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Immediately following the Annual Meeting, |
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Bruker Proxy Statement 2025 |
Directors Continuing in Office until the 2027 Annual Meeting
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Age 77 |
Director Since 2000 |
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Since 1978, |
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Age 65 |
Director Since 2017 |
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Age 68 |
Director Since 2015 |
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Board Leadership Structure
Under our Amended and Restated Bylaws, the Chairman of our Board has the power to preside at all meetings of the Board. The current leadership structure of our Board consists of a combined Chairman and Chief Executive Officer position and a lead director that is appointed by the independent directors. Accordingly, Dr. Laukien, our Chief Executive Officer and President, serves as the Chairman of our Board and has done so throughout the time we have been a public company. The Board does not have a fixed policy regarding the combination or separation of the offices of Chairman and Chief Executive Officer. Rather, our Board believes that it should have the flexibility to make these determinations in the way that it considers best to provide appropriate leadership for Bruker. The Board has determined that combining the positions of Chairman and Chief Executive Officer is most appropriate for the Company at this time.
The Chief Executive Officer is appointed by our Board to manage our daily affairs and operations. Having served as our Chief Executive Officer since 1991, Dr. Laukien has extensive industry knowledge and a long history of direct involvement in our operations. Accordingly, the Board believes this makes him best suited to serve as Chairman in order to:
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Bruker Proxy Statement 2025 |
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Additionally, Dr. Laukien's significant equity ownership of approximately 26.7% of the outstanding shares of our Common Stock means that he has a close and direct alignment of interests with the interests of our other stockholders.
Our Board structure also fosters strong oversight by independent directors.
The Board believes that this approach appropriately and effectively complements our combined Chairman and Chief Executive Officer role.
We are committed to strong corporate governance, and our
Board Independence
There are currently 10 members of our Board. All of our current directors and director nominees, other than
There are no family relationships among any of the current directors, director nominees, and executive officers of the Company.
Board Meetingsand Board Committees
In 2024, the Board held five meetings. The Board meets in executive session during each regularly scheduled Board meeting. In 2024, every director attended at least 92% of the total number of Board meetings and committee meetings of which he or she was a member (during the period he or she served on the Board and on such committees). It is the policy of our Board that at least two directors, including at least one independent director, attend our Annual Meeting. Four directors, including three independent directors, attended our 2024 Annual Meeting.
As described below, the Board has three standing committees: an Audit Committee, a Compensation Committee and a
Audit Committee.The Audit Committee met eight times in 2024. The Audit Committee currently consists of
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Bruker Proxy Statement 2025 |
None of the members of the Audit Committee has participated in the preparation of our financial statements at any time during the last three fiscal years.
Compensation Committee.The Compensation Committee met six times in 2024. The Compensation Committee currently consists of
Our Chief Executive Officer, General Counsel and Vice President, Corporate Human Resources may routinely attend meetings of the Compensation Committee to provide information relating to matters the Compensation Committee is considering; please see the section entitled "Role of Management" on page 19 for a more detailed discussion regarding the role of management in making compensation decisions. The Compensation Committee may, from time to time, meet in executive session without any executive officers or other members of management present.
Nominating & Governance Committee.
At a meeting held in
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Bruker Proxy Statement 2025 |
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DirectorNominations
Upon recommendation of the
The process followed to identify and evaluate potential candidates includes requests to Board members and others for recommendations, meetings from time to time to evaluate biographical information and background materials relating to potential candidates and interviews of selected candidates by the members of the
We do not have a formal policy with regard to the consideration of diversity in identifying director nominees, but we strive to identify and recruit director candidates with a variety of complementary skills, expertise and backgrounds so that, as a group, the Board will possess the appropriate talent, skills and expertise to oversee our business.
In considering whether to recommend any candidate for inclusion in the Board's slate of recommended director nominees, including any candidate recommended by a stockholder, the Board and the independent directors apply the following criteria:
The Board and the independent directors may also consider the following for some director nominees:
In evaluating candidates recommended by the
Stockholders may communicate directly with the
Role of the Board in Risk Oversight
Our Board considers general oversight of our risk management efforts to be a responsibility of the entire Board. The Audit and Compensation Committees assist the Board in carrying out this responsibility by focusing on specific key areas of risk that our business faces. The Board's role in risk oversight includes receiving regular reports from members of senior management on areas of material risk to Bruker, or to the success of a particular project or endeavor under consideration, including operational, financial, legal and regulatory, strategic and reputational risks. The full Board, the Audit Committee (in the case of financial and compliance risks that are within the oversight of the Audit Committee) or the Compensation Committee (in the case of matters relating to our compensation policies and practices), receive these reports from members of management to enable the Board or the Audit or Compensation Committees, as applicable, to understand our risk identification, risk management, and risk mitigation strategies. To facilitate this process and assist the Audit Committee in fulfilling its responsibility for monitoring legal and compliance risks, we rely in part upon our General Counsel and our Global Head of Internal Audit. The Audit Committee Chair is authorized to give instructions and assignments directly to the Head of Internal Audit who reports directly and only to the Audit Committee Chair on these matters. When a report is evaluated at the Audit Committee level, the Chair of the Audit Committee subsequently reports on the matter to the full Board to ensure coordination of the Board's risk oversight activities. Our Board also believes that risk management is an integral part of our strategic planning process, which addresses, among other things, the risks and opportunities facing our business.
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Bruker Proxy Statement 2025 |
Role of the Board in Succession Planning
Our
DIRECTOR COMPENSATION
We pay the non-employee members of our Board a mix of cash and share-based compensation based on the determinations of the Compensation Committee. Each year, the Compensation Committee reviews and makes recommendations to the full Board regarding any changes to Board compensation and reviews recommendations for long-term equity incentive awards. Our employee director,
Components ofDirector Compensation
In 2024, non-employee director compensation was:
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2024 Director Cash Compensation ($) |
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Board Service |
72,500 |
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Audit Committee Service |
18,000 |
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Audit Committee Chair |
17,000 |
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Compensation Committee Service |
8,000 |
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Compensation Committee Chair |
10,000 |
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Nominating & Governance Committee Service |
5,000 |
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Nominating & Governance Committee Chair |
7,000 |
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Lead Director Service |
25,000 |
In addition to the cash component of director compensation, we grant non-employee directors an annual equity award of restricted stock units, or RSUs, valued at
On
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Bruker Proxy Statement 2025 |
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The following table provides information concerning the actual compensation paid by us to each of our non-employee directors for the fiscal year ended
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2024 Director Compensation Table(2) |
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Fees Earned or |
Equity Awards(1)($) |
Total ($) |
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90,500 |
165,035 |
255,535 |
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85,500 |
165,035 |
250,535 |
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102,500 |
165,035 |
267,535 |
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54,375 |
165,035 |
219,410 |
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107,500 |
165,035 |
272,535 |
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92,500 |
165,035 |
257,535 |
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90,500 |
165,035 |
255,535 |
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85,500 |
165,035 |
250,535 |
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90,500 |
165,035 |
255,535 |
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As of
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Number of |
Number of |
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2,377 |
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7,500 |
2,377 |
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52,000 |
2,377 |
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- |
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15,000 |
2,377 |
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52,000 |
2,377 |
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- |
2,377 |
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15,000 |
2,377 |
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12,500 |
2,377 |
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Bruker Proxy Statement 2025 |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information regarding beneficial ownership of our Common Stock as of
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Beneficial Owners |
Amount and Nature of |
Percent of Class(1) |
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Named Executive Officers, Directors and Director Nominees |
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40,450,364 |
26.7% |
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110,543 |
* |
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38,642 |
* |
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241,955 |
* |
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211,042 |
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10,029 |
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- |
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18,253 |
* |
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55,425 |
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38,147 |
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90,904 |
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21,326 |
* |
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23,147 |
* |
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30,963 |
* |
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All executive officers and directors as a group (15 persons)(11) |
41,358,133 |
27.3% |
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5% Beneficial Owners |
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14,242,121 |
9.4% |
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T. |
13,037,141 |
8.6% |
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9,896,786 |
6.5% |
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9,822,776 |
6.5% |
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7,515,769 |
5.0% |
* Less than one percent
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Bruker Proxy Statement 2025 |
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EXECUTIVEOFFICERS
Our executive officers are designated annually by the Board. The persons listed below are currently serving as our executive officers and they all served as executive officers throughout the fiscal year ended
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Age |
Position |
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65 |
Chairman, President and Chief Executive Officer |
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67 |
Executive Vice President and Chief Financial Officer |
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58 |
President, |
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63 |
Executive Vice President, President of |
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58 |
President and Chief Executive Officer, |
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70 |
President, |
For biographical information relating to Dr. Laukien, who serves as both an executive officer and a director, please see "Certain Information Regarding Directors and Nominees" above. We present biographical information for our other executive officers below.
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Bruker Proxy Statement 2025 |
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Bruker Proxy Statement 2025 |
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ENVIRONMENTAL, SOCIAL, AND CORPORATE GOVERNANCE (ESG)
Bruker's 2024 Sustainability Report highlights our commitment to corporate social responsibility, transparency, and progress on material ESG topics. The report has been produced with reference to the
Below are some key messages from our report:
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Highlights of Key Initiatives |
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Environmental Encompasses our: ■
Commitment to environmental sustainability
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Focus on environmental impact reduction
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Adoption of innovative technologies
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Measurement & reporting of progress
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Tracking energy consumption and carbon dioxide equivalent emissions - Measuring our energy use across operations to identify major sources and opportunities to improve efficiency and reduce emissions.
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Expanding renewable energy usage-Efforts to transition where possible, including increasing the share of self-generated and purchased renewable electricity.
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Managing waste streams - Monitoring our waste generation, increasing recycling, managing waste as a resource, and addressing hazardous waste risks.
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Reducing water consumption - Assessing our production processes and site operations to decrease water usage. Ensuring discharged water quality complies with regulations.
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Recovering and recycling cooling liquids - Capturing, storing, reusing and recycling cooling liquids through various production processes to minimize waste.
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Considering environmental sustainability in facilities and product design - Factoring in environmental criteria for new facilities and product development, including reduced footprint, energy efficiency, and resource use.
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Engaging suppliers on responsible sourcing - We require suppliers to meet our standards outlined in Supplier Code of Conduct to manage sustainability impact.
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Social Covers our: ■
Belief of the importance of our employees
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High safety standard
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Inclusive, people-oriented culture
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Community engagement
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Reporting important employee data - including workforce numbers and demographics, incident rates, and eligibility for variable pay incentives to motivate and retain talent.
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Promoting employee health, safety and wellbeing - through training programs, health initiatives, and safety protocols and certifications.
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Offering training and development opportunities for competency and leadership growth -we provide leadership programs, reimbursement for external education, and annual performance reviews to provide all employees feedback and coaching for improvement and career growth.
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Community engagement - we organize events, fundraising initiatives, and mobilize employee volunteers and donations to support charitable causes in the communities in which we operate.
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Corporate Governance Describes our: ■
High standards of corporate governance
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Key governance indicators
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Approach to "Innovation with Integrity"
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High ethical standards - we maintain a high commitment to integrity, equal opportunity, and compliance in employee policies and practices.
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Board oversight of ESG - covers our company's strategy and relevant risk areas. Board and committees guide business strategy and monitor sustainability practices.
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Structured compliance program -headed by our corporate ethics and compliance team. Includes our Code of Conduct, related training, and whistleblower process.
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Code of Conduct - outlines our commitment to integrity, equal opportunity, legal/regulatory compliance and high expectations of ethical conduct.
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Global Anti-Corruption Policy - prohibits activity intended to improperly influence a business decision, including bribery. Our Global Anti- Corruption policy and documents our procedures designed to prevent unethical dealings and reiterates our commitment to compliance with applicable anti-bribery and anti-corruption laws,
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Product safety - we maintain protocols and monitoring to quickly address defects and mitigate risks.
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Supplier Code of Conduct - serves as an important framework for our suppliers to conduct their business in a legally compliant and sustainable manner and to meet our internal standards of business conduct,
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Responsible materials sourcing practices and conflict minerals reporting - we advocate responsibility in supplier sourcing practices; our suppliers are required to take all necessary and reasonable measures to ensure that all reporting to Bruker is in compliance with applicable laws and regulations, including any of our requests for information.
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More information can be found in our Sustainability Report, which can be accessed through the page on our website that covers Our Commitment to Responsible Business atwww.bruker.com
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Bruker Proxy Statement 2025 |
COMPENSATION DISCUSSION AND ANALYSIS
This Compensation Discussion and Analysis, or CD&A, describes the principles, objectives, and features of our executive compensation program with respect to our Chief Executive Officer and the other executive officers listed below, whom we refer to collectively in this Proxy Statement as the "named executive officers."
ExecutiveOverview
Our executive compensation program is designed to attract, motivate, retain, and reward the individuals who lead our organization. These leaders are responsible for shaping and executing our overarching business strategy. Our compensation approach for executive officers has several facets including:
We work to encourage the entrepreneurial nature of our business groups and the executives who lead them through higher financial rewards tied to long-term equity incentive awards. We strive to align compensation awarded pursuant to our executive pay program with the interests of our stockholders without encouraging excessive or unnecessary risk-taking by our executives. We provide limited perquisites and no excise tax gross ups. We also have a recoupment, or clawback, provision under our incentive plans that allows us to seek reimbursement of short-term annual cash incentive payments and repayment of stock award gains in certain circumstances. We believe that our executive compensation program achieves the right balance of rewarding performance, aligning interests, and safeguarding against excessive risk-taking.
2024 Financial Performance
Our business strategy is to create value for our stockholders based on our ability to innovate and generate above market financial performance, both organically and through acquisitions. Achieving improvements in our revenue, operating profit, earnings per share and working capital levels are important to our success. Reflecting these objectives, a significant portion of our executive officers' cash compensation is based on our performance relative to goals linked to currency-adjusted revenue growth, non-GAAP gross profit and/or non-GAAP operating profit improvement, working capital improvement and non-GAAP earnings per share growth.
Financial performance highlights for fiscal 2024 include:
Additional information regarding our use of non-GAAP financial measures, including how we define and calculate such non-GAAP financial measures, is included beginning on page 39 under Part II, Item 7-Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended
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Bruker Proxy Statement 2025 |
16 |
2024 Executive Compensation Actions
Highlighted below are some of the key actions and decisions with respect to our executive compensation programs for 2024, as approved by the Compensation Committee:
We believe the combination of a high proportion of total compensation tied to share price performance and a four-year vesting period for equity awards further aligns the interests of our executives with the long-term interests of our stockholders.
2024 Say-on-Pay Vote
We hold annual advisory votes on the compensation paid to our named executive officers, or say-on-pay votes. Approximately 96% of the shares voted on say-on-pay at our 2024 Annual Meeting of Stockholders were in favor of our named executive officer compensation decisions and policies as described in our 2024 Proxy Statement. The Compensation Committee considered this result in 2024 and determined that it was not necessary to make any material changes to our compensation policies and practices. The Compensation Committee appreciates feedback from shareholders and will consider future say-on-pay results in its compensation decisions.
At the 2024 Annual Meeting, our stockholders were asked to cast an advisory vote on the frequency of future advisory votes on named executive officer compensation. Approximately 72% of the shares voted on the frequency of future say-on-pay votes at our 2024 Annual Meeting were in favor of holding an advisory vote on the compensation paid to our named executive officers every year. We will next ask our stockholders to cast an advisory vote on the frequency of future say-on-pay votes at our 2029 Annual Meeting of Stockholders.
Executive Compensation Philosophy and Process
Key Considerations in Setting Compensation
Our key objectives in structuring and determining executive compensation are to:
To achieve these objectives, we have embraced a compensation philosophy that seeks to align compensation with our strategic objectives and reward our executive officers for meeting or exceeding certain pre-determined performance goals. Executive compensation at Bruker is based in large part on a pay-for-performance philosophy, through annual incentive bonus awards which emphasize both company and individual performance measures that correlate closely with the achievement of our short- and long- term strategic performance objectives. To motivate our executive officers, we focus on cash compensation in the form of salary and annual performance incentives, a portion of which is tied to the individual's performance, and we augment this cash compensation
|
17 |
Bruker Proxy Statement 2025 |
with equity grants. In structuring executive compensation, the Compensation Committee focuses on our goal of long-term enhancement of shareholder value through grants of equity incentive awards with extended multi-year vesting schedules.
The Compensation Committee assesses the effectiveness of our executive compensation program from time to time and reviews risk mitigation and governance matters, which includes maintaining the following best practices:
|
What We Do |
|
|
Pay for Performance |
The majority of total compensation opportunity for our named executive officers is variable and at-risk. |
|
Balance Short- and Long-Term Compensation |
The allocation of incentives among the annual incentive plan and the long-term incentive plan does not over-emphasize short-term performance at the expense of achieving long-term goals. |
|
Combination of Balanced Performance Metrics |
We use a diverse set of corporate financial metrics and individual performance goals in our annual incentive plan to ensure that no single measure affects compensation disproportionately. |
|
Independent Compensation Consultant |
Our Compensation Committee has engaged an independent compensation consultant to provide information and advice for use in designing our executive compensation program. |
|
Peer Data |
We develop a peer group of companies based on industry, revenue and employee headcount to reference for compensation decisions. |
|
Cap Bonus Payouts; Fixed Equity Grants |
Our annual incentive plan has an upper limit on the amount of cash that may be earned. The maximum number of shares that might be earned is fixed in a grant. |
|
Double Trigger Change-in- Control Provisions |
If there is a change in control, outstanding time-based equity awards that are assumed by a buyer under our plan will vest only if there is both a change-in-control and an involuntary termination of employment (a "double trigger"). |
|
Robust Stock Ownership and Retention Guidelines |
Our executive officers and directors are required to maintain robust levels of stock ownership. Executive officers and directors who have not met their minimum required ownership, are required to hold (and not dispose of) a certain amount of shares of our Common Stock acquired through equity awards until the ownership requirement is met. |
|
Annual Say-on-Pay Vote |
We conduct an annual advisory say-on-pay vote on our named executive officer compensation. |
|
Stockholder Engagement |
We are committed to ongoing engagement with our stockholders regarding matters such as executive compensation, corporate governance and sustainability |
|
Clawback for Overpayments |
Our policy requires that we recoup incentive-based compensation from current and former executive officers in the case of a restatement that resulted in an overpayment. |
|
What We Don't Do |
|
|
No Hedging or Pledging of |
We prohibit employees and non-employee directors from engaging in hedging transactions in our securities and, subject to one limited exception, may not pledge our securities as collateral for any loan. |
|
No Excessive Perks |
We do not provide material perquisites to executive officers. |
|
No Excise Tax Gross-Ups |
We do not provide excise tax gross-ups. |
|
No Guaranteed Bonuses |
We do not guarantee our named executive officers any minimum levels of base salary increase, payment under our annual incentive plan or equity grants, which are entirely performance-based. |
Role of the Compensation Committee
Our Compensation Committee oversees management's administration of our executive compensation program, including:
The Compensation Committee may delegate its responsibilities to a subcommittee as it deems appropriate.
The Compensation Committee ensures total compensation is competitive, appropriately tied to performance, and balances risk-taking:
|
Chief Executive Officer |
Executive Officers |
Competitive Market Benchmark |
|
■
Conducts the annual performance evaluation and provides feedback to the CEO
■
Sets compensation for CEO
|
■
Reviews the annual performance evaluation and provides feedback on the Executive Officers
■
Approves changes to EO compensation
|
■
Assesses competitive market compensation for Executive Officers using a variety of sources to ensure individual cash compensation levels remain reasonable and competitive
|
The Compensation Committee retains the discretion to approve awards in excess of those calculated to have been earned under the pre-established cash incentive plans of our executive officers in recognition of exceptional performance. Additionally, the Compensation Committee may exercise its discretion to reduce an award considering various factors, or not to approve cash incentive plan awards calculated to have been earned under a pre-established cash incentive plan of an executive officer in the event the Compensation Committee determines that such executive officer has violated Bruker policies or has failed to meet minimum performance expectations.
|
Bruker Proxy Statement 2025 |
18 |
Role of Management
The Chief Executive Officer, with the assistance of the Executive Vice President and Chief Financial Officer, or EVP/CFO, is responsible for:
The Compensation Committee will consider input from the CEO and EVP/CFO; however, the Compensation Committee makes final determinations based on its assessment of each executive officer's performance relative to their performance-based goals. Neither the CEO nor the EVP/CFO participate in Compensation Committee discussions or determinations of their own compensation.
The CEO and the Vice President, Corporate Human Resources participate in the Compensation Committee meetings, at the request of the Committee, and the EVP/CFO may participate in Compensation Committee meetings to provide perspective and relevant information related to financial goals and other financial plan topics.
Role of
The Compensation Committee has retained
The Compensation Committee has evaluated
Peer Group Review and Market Data
In establishing and evaluating compensation for our named executive officers, the Compensation Committee utilizes survey market data and peer group analysis provided by
Although individual pay is driven largely by individual and corporate performance considerations, the Compensation Committee has historically used reference group data as a "market check" to help ensure that individual cash compensation levels remain reasonable and competitive. selected peer group is generally used for compensation assessments and analyzing our executive compensation pay levels and practices, including our share allocation and utilization for employee equity awards as compared with peer companies.
For 2024 compensation evaluations, the Compensation Committee reviewed its existing peer group and determined that
|
19 |
Bruker Proxy Statement 2025 |
range and median of competitive salaries, cash bonuses and long-term incentives. In addition to industry, complexity and size characteristics, the Compensation Committee also considers how other third-party organizations (such as the Standard and Poor's GICS methodology) categorize Bruker and other companies which shareholder advisory firms (such as ISS) consider comparable to us.
In 2024, at the time
|
Company |
Revenue |
Employee Count |
|
|
25th percentile |
|
4,161 |
|
|
Median |
|
8,200 |
|
|
Bruker |
|
8,525 |
|
|
75th percentile |
|
13,425 |
The peer group considered by the Compensation Committee for its evaluation of 2024 executive compensation levels and practices included:
|
■
|
■
|
|
■
|
■
|
|
■
|
■
|
|
■
|
■
|
|
■
|
■
|
|
■
|
■
|
|
■
|
■
|
|
■
|
In general, in light of our relative market position, the Compensation Committee considered the range and median compensation levels of the companies in the peer group to be appropriate and reasonable competitive comparisons for our executive officers when evaluating and approving 2024 compensation packages.
Components of NamedExecutive Officer Compensation
Executive officer compensation consists of cash compensation in the form of annual base salary and annual incentive bonus awards, as well as long-term incentive compensation in the form of stock option and RSU grants.
|
Compensation Element |
Alignment with Creation of Shareholder Value |
|
Annual Base Salary |
■
Retains and attracts high-performing executives through competitive fixed compensation
|
|
Annual Cash Inventive |
■
Achievement of company financial and individual goals relevant to each executive
|
|
Long-Term Incentive |
■
Motivates executives to create long-term enhancement to stockholder value through long-term stock ownership in Bruker Common Stock
|
|
Other Benefits |
■
Retains and attracts high-performing executives through competitive benefits
|
Additional Recognition. In addition to the above compensation components, the Compensation Committee approved an additional bonus opportunity for Dr.
|
Bruker Proxy Statement 2025 |
20 |
Mix of Compensation
In accordance with our pay-for-performance philosophy, variable compensation in the form of short-term cash incentive compensation and long-term equity incentive awards is intended to be a significant portion of overall compensation, with this at-risk component increasing as a percentage of overall compensation potential as the individual officer's responsibility increases.
We believe that our equity grant practices signify strong alignment between our executive team and stockholder interests. The following charts and tables illustrate the mix of approved 2024 target levels, for base salary, short-term cash incentive bonus at target levels and long-term incentive awards, or LTI, provided in the compensation packages of our Chief Executive Officer, or CEO, and, on average, our named executive officers other than our Chief Executive Officer, or Other NEOs.
Named ExecutiveOfficer Compensation Mix
2024Base Salaries
Base salaries are determined based on a variety of factors, including each named executive officer's level of responsibility, scope of the role, experience and potential, performance and a comparison of salaries paid to peers within Bruker and to those with similar roles at other similarly situated companies, including those found in the market surveys and peer group data reviewed by the Compensation Committee. Base salaries are set at levels that the Compensation Committee believes are reasonably competitive to allow us to attract and retain qualified executives. Base salaries are reviewed annually and may be adjusted, as appropriate. Annual base salaries for 2024 approved by the
|
2024 Base Salary(1)($) |
2023 Base Salary($) |
% Change in Local Currency |
|||||
|
Dr. Laukien |
976,554 |
938,994 |
4.0% |
||||
|
|
644,234 |
613,556 |
5.0% |
||||
|
|
508,819 |
461,810 |
5.0% |
||||
|
|
738,370 |
703,210 |
5.0% |
||||
|
|
481,005 |
454,780 |
5.0% |
For 2024, the Compensation Committee approved salary increases ranging from 4% to 5% for our named executive officers. The Compensation Committee considered these increases appropriate based on its evaluation of competitive market levels, peer group survey data, individual performance and market conditions.
|
21 |
Bruker Proxy Statement 2025 |
Cash Incentive Plans and Review of 2024 Performance
Annual Cash Incentive Awards. Annual incentive awards in the form of performance-based cash incentive bonuses for our named executive officers are based upon management's success in achieving a combination of corporate financial and individual measures established each year by the Compensation Committee after consultation with management. The specific goals vary for each named executive officer based on responsibilities and role within Bruker and may include financial or strategic measures. Individual goals are intended to reward performance which results in Bruker meeting or exceeding its financial or operational goals.
The Compensation Committee also considers the mix of performance goals to balance the incentives created to mitigate risks that may be associated with a particular performance goal. Through a mix of financial metrics and individual goals, cash incentive awards reflect both the individual's contributions compared to his or her specific performance goals for the year and the overall performance of Bruker or the particular operations under the executive officer's leadership.
Overview and Outcomes.Under the annual short-term incentive compensation plans, or ICPs, named executive officers are eligible for cash awards based on Company and individual performance. The 2024 ICP goal total achievement for named executive officers was as follows:
The two primary classifications of performance goals utilized are pre-established financial performance metrics and specific individual performance goals. Each performance metric represents part of the total incentive award calculation, with the financial goals in 2024 accounting for, in the aggregate, 70% of the target award potential and the individual goals in 2024 accounting for, in the aggregate, 30% of the total incentive award potential. In 2024, the Compensation Committee established our named executive officers' 2024 ICPs as follows:
2024 ICP Structure and Metrics.The basic structure and metrics of the 2024 cash incentive plans established for our executive officers are summarized as follows:
|
CEO & CFO |
Group Presidents |
All Executive Officers |
|
Financial Goals » 70% of Total Target Cash Incentive Plan Opportunity |
Potential Payout Amounts |
|
|
Corporate Financial Performance Goals |
Group Financial Performance Goals |
|
|
✓
Currency - Adjusted Revenue Growth (15%)
✓
Non-GAAP Operating Profit Improvement (20%)
✓
Non-GAAP Earnings Per Share Growth (non-GAAP EPS) (15%)
✓
Working
|
✓
Currency - Adjusted Revenue Growth (15%)
✓
Non-GAAP Gross Profit Improvement (15%)
✓
Non-GAAP Operating Profit Improvement (15%)
✓
Working
✓
Non-GAAP EPS (10%)
|
Each financial goal has a minimum of 0% payout and a maximum of 200%, with payouts determined relative to the achievement of each of the specified performance goals on a linear basis. |
|
Individual » 30% of Total Target Cash Incentive Plan Opportunity |
Potential Payout Amounts |
|
|
✓
Individual strategic and organizational objectives
|
✓
Individual strategic and organizational objectives
|
0 - 125%, subject to adjustment at the discretion of the Compensation Committee |
|
Bruker Proxy Statement 2025 |
22 |
Setting Incentive Target Levels. The following table summarizes the 2024 ICP target levels approved for each of our named executive officers and the relationship of performance-based cash compensation at target levels to base salary and total potential cash compensation. The bonus target levels remain unchanged from 2023.
|
2024 Cash Incentive Targets(1) |
||||||
|
$ Target Level |
% of Base Salary at Target Achievement |
% of Total |
||||
|
Dr. Laukien |
1,367,176 |
140% |
58% |
|||
|
|
450,964 |
70% |
41% |
|||
|
|
305,291 |
60% |
38% |
|||
|
|
479,941 |
65% |
39% |
|||
|
|
312,654 |
65% |
39% |
|||
When setting individual target incentive levels for 2024 ICPs, the Compensation Committee reviewed, for each named executive officer, individual target awards applicable in 2024, the total cash compensation established for 2024 and the projected cash compensation for 2024, considering how the total cash compensation of each named executive officer compared to peer group and related market data, and the responsibilities of each named executive officer. Additionally, the Compensation Committee considered long-term incentive target levels, to consider a total direct compensation view, so that no one element was determined in isolation.
Setting Corporate Performance Goals and Thresholds.The Compensation Committee establishes specific corporate-level financial performance goals for our executive officers with corporate responsibilities, including Dr. Laukien and
Financial performance goals generally reflect targeted growth as compared to the results achieved in the prior year for the relevant metric, with a threshold level of current year performance required for any cash incentive payout. However, threshold levels are typically equal to the prior year's performance. As a result, 2023 performance was the threshold achievement for our named executive officers to eaany portion of their cash incentive plan targets linked to financial performance goals in 2024 (with exception of working capital for Corporate,
Payments for cash incentive bonuses linked to the achievement of the pre-established financial performance goals are calculated based on percentage achievement of the financial target goal. The payout for the financial goals portion of an individual's ICP is limited to 200% of the financial incentive award target.
Setting Individual Performance Goals and Thresholds.While still measurable, individual performance goals may not always be as quantifiable as the financial objectives. Payments for individual performance goals are made in a range of 0% to 125%, based on a qualitative evaluation of the named executive officer's performance and determined by the Compensation Committee.
Individual performance goals are generally set as stretch, but attainable, goals, with over-achievement of goals anticipated to occur in only limited circumstances. In determining award payouts for these goals, the Compensation Committee considers each of the executive officers' achievements in meeting their individual performance goals and the substantial progress made during the fiscal year with respect to a variety of strategic, organizational and infrastructure initiatives implemented under their leadership. Additionally, the Compensation Committee may, in its discretion, award cash incentive bonuses above the target level in the event it determines that a named executive officer has delivered exceptional performance. Cash incentive compensation plans of our named executive officers operate under a common set of performance metrics and calculation methodologies, with goals adjusted at the corporate or group level to reflect individual areas of responsibility.
|
23 |
Bruker Proxy Statement 2025 |
2024 Cash Incentive Award Payout Determinations
DR. FRANK H. LAUKIEN AND MR. GERALD N. HERMAN:
2024 Financial Performance Goals (70% of Target Bonus Potential)
As the CEO and CFO, respectively, of the Company, Dr. Laukien's and
|
2024 Corporate Level Performance Goals(1) |
Weighting |
2024 Performance(1) |
% Of Incentive Goal Achieved |
|
■
|
15 % |
|
63.6 % |
|
■
|
20 % |
|
0.0 % |
|
■
|
20 % |
|
194.4 % |
|
■
|
15 % |
|
61.9 % |
|
Total |
70 % |
82.4 % |
Individual Performance Goals
(30% of Target Bonus Potential)
The individual performance goals and achievement ratings for each of Dr. Laukien's and
Dr. Laukien
Dr. Laukien's individual performance goals for 2024 included active portfolio management, high-value innovation, operational excellence, and organizational effectiveness. Dr. Laukien earned 100% of the portion of his cash incentive target linked to individual performance goals. This was comprised of mixed delivery of goals in active portfolio management with one goal exceeded the target, one goal at target, and one lagging target. Additionally, there was a slight under delivery of a high-value innovation goal. The other focus areas of operational excellence and organizational effectiveness were delivered as expected.
|
Bruker Proxy Statement 2025 |
24 |
DR. FALKO BUSSE :
2024 Financial Performance Goals
(70% of Target Bonus Potential)
As President of the
|
2024 Bruker BioSpin Group Performance Goals(1) |
Weighting |
2024 Performance(1) |
% Of Incentive Goal Achieved |
|
■
|
15 % |
|
82.2 % |
|
■
|
15 % |
|
87.6 % |
|
■
|
15 % |
|
128.9 % |
|
■
|
15 % |
|
200.0 % |
|
■
|
10 % |
|
61.9 % |
|
Total |
70 % |
115.7 % |
Individual Performance Goals
(30% of Target Bonus Potential)
|
25 |
Bruker Proxy Statement 2025 |
DR. MARK R. MUNCH :
2024 Financial Performance Goals
(70% of Target Bonus Potential)
|
2024 (NANO) Performance Goals(1) |
Weighting |
2024 Performance(1) |
% Of Incentive Goal Achieved |
|
■
|
15 % |
|
66.8 % |
|
■
|
15 % |
|
51.4 % |
|
■
|
15 % |
|
33.3 % |
|
■
|
15 % |
|
93.2 % |
|
■
|
10 % |
|
61.9 % |
|
Total |
70 % |
61.3 % |
Individual Performance Goals
(30% of Target Bonus Potential)
|
Bruker Proxy Statement 2025 |
26 |
MR. JUERGEN W. SREGA :
2024 Financial Performance Goals
(70% of Target Bonus Potential)
As President of the
|
2024 (CALID) Performance Goals(1) |
Weighting |
2024 Performance(1) |
% Of Incentive Goal Achieved |
|
■
|
15 % |
|
40.5 % |
|
■
|
15 % |
|
0.0 % |
|
■
|
15 % |
|
0.0 % |
|
■
|
15 % |
|
139.3 % |
|
■
|
10 % |
|
61.9 % |
|
Total |
70 % |
47.4 % |
Individual Performance Goals
(30% of Target Bonus Potential)
|
27 |
Bruker Proxy Statement 2025 |
Total NEO Incentive Award Payments
Following review of the performance of our named executive officers in 2024, the Compensation Committee approved ICP awards to the named executive officers based on their respective percentage achievement of 2024 financial and individual performance goals as follows:
|
NEO |
Financial Goal Achievement |
Individual Goal Achievement |
Total Cash Incentive Payment |
|||
|
|
82.4% |
100.0% |
87.7% |
|||
|
|
82.4% |
97.5% |
87.0% |
|||
|
|
115.7% |
102.5% |
111.8% |
|||
|
|
61.3% |
100.0% |
72.9% |
|||
|
|
47.4% |
112.5% |
66.9% |
As shown above, based on their performance relative to their combined 2024 corporate performance goals and individual goals, Dr. Laukien and
The actual cash incentive award payments to our named executive officers are reported in the "Non-Equity Incentive Plan Awards" column of the Summary Compensation Table in this Proxy Statement.
2024 Long-TermIncentive Awards
The Compensation Committee uses long-term incentive compensation in the form of equity awards to deliver competitive compensation that recognizes employees for their contributions to Bruker and aligns the interests of named executive officers with stockholders by focusing them on long-term growth and stock price performance.
In 2024, upon consideration of a variety of factors, including the individual performance, experience and responsibilities of each of our named executive officers, our stock price, competitive market practices and trends, including total potential dilution and annual equity burate levels, outstanding equity awards held by our named executive officers and overall Company performance, the Compensation Committee approved the following long-term incentive awards to our named executive officers in
2024 Long-Term Equity Incentive Awards
Long-Term Incentive Awards. Equity incentive compensation in the form of stock option and RSU awards is designed to provide long-term incentives to executive officers, to encourage them to remain with us and to enable recipients to develop and maintain a long-term stock ownership position in our Common Stock, which in tumotivates them to focus on creating long-term enhancement to stockholder value.
|
Aggregate |
Stock Options |
RSUs |
||||
|
Dr. Laukien |
3,338,058 |
77,255 |
28,307 |
|||
|
|
1,246,377 |
13,742 |
15,106 |
|||
|
|
497,539 |
5,486 |
6,030 |
|||
|
|
1,239,456 |
13,666 |
15,022 |
|||
|
|
750,000 |
8,319 |
9,073 |
We use a combination of stock options and RSU awards to balance the performance orientation of stock options to enhance our pay-for-performance culture and the retentive qualities of RSUs. The Compensation Committee believes this mix to be reasonable considering market practices, the overall level of pay for our executives and the long-term orientation of the equity award vehicles, given that they vest over a period of four years. In 2024, the value of awards to our CEO is 47% stock options and 53% RSU's. The named executive officers consisted of 25% stock options and 75% RSUs, which is consistent with the Compensation Committee's approach generally.
|
Bruker Proxy Statement 2025 |
28 |
ExecutiveBenefits
In 2024, our named executive officers were eligible for the same level and offering of benefits made available to other employees, including our 401(k) plan and welfare benefit programs in
Employment Contracts, Termination of Employment and Change-in-Control Arrangements
Our wholly owned subsidiary
We and
Additionally, pursuant to the letter agreement,
Pursuant to
In the event of a change in control of Bruker, our Board has the authority to accelerate vesting of any and all unvested option, restricted stock and RSU awards granted under the 2016 Plan and the 2010 Incentive Compensation Plan, or 2010 Plan. Accelerated vesting in such circumstances is at the Board's sole discretion. Under the standard terms of the awards of options, restricted stock and RSUs granted under these plans, unvested amounts are forfeited if the grantee's employment or business relationship with Bruker is terminated for any reason, other than in the event of death or disability.
|
29 |
Bruker Proxy Statement 2025 |
Section 162(m) Limitations
Section 162(m) of the
The Compensation Committee and management consider the accounting and tax effects of various compensation elements when designing our annual incentive and equity compensation plans and making other compensation decisions. Although we have considered the impact of Section 162(m) when designing our executive compensation programs and incentive plans, tax deductibility is not a primary consideration in setting compensation and is secondary to meeting the overall objectives of the executive compensation program. The Compensation Committee will continue to monitor the compensation levels potentially payable under our compensation programs and intends to retain the flexibility necessary to provide total compensation in line with competitive practice and our compensation philosophy, even if such compensation is not deductible under Section 162(m).
Accounting rules require us to record cash compensation as an expense at the time the obligation is incurred. Additionally, we follow Financial Accounting Standards Board ASC Topic 718 for our stock-based compensation awards. In accordance with ASC Topic 718, stock-based compensation cost is measured at the grant date, based on the estimated fair value of the awards using a variety of assumptions. This calculation is performed for accounting purposes and, as applicable, reported in the compensation tables, even though recipients may never realize any value from their awards. We record this expense on an ongoing basis over the requisite employee service period.
Stock Ownership Guidelines
We have adopted stock ownership guidelines that apply to our directors and executive officers based on the Board's determination of appropriate share ownership levels as follows:
|
Position |
Ownership Requirement |
|
Chief Executive Officer |
5x annual base salary |
|
Executive Officers |
2x annual base salary |
|
Non-Employee Directors |
5x annual retainer |
All Common Stock held directly or indirectly by the directors and executive officers as well as unvested RSUs are included for purposes of calculating stock ownership under the guidelines. Our directors and executive officers have five years from the date the guidelines were adopted in
Individuals must hold 50% of the shares delivered to them pursuant to an exercise of stock options or the vesting of RSUs (in each case net of any taxes owed) until the applicable minimum ownership requirement is met.
All directors and executive officers have met their ownership guidelines and continue to accumulate and hold shares consistent with the guidelines.
Compensation Recovery/Clawback Policy
Consistent with the Dodd-Frank Wall Street Reform Act and Protection Act of 2010, our Clawback Policy implements the mandatory recoupment of incentive-based compensation received by an executive officer in the event of an accounting restatement in compliance with the applicable rules of the
Insider Trading Policies and Procedures
We haveadoptedan insider trading policy and procedures governing the purchase, sale, and/or other dispositions of our securities (the "Insider Trading Policy") that applies to all directors, officers, employees, consultants, contractors of the Company and its subsidiaries, as well as the Company itself. We believe that the Insider Trading Policy is reasonably designed to promote compliance with insider trading laws, rules and regulations with respect to the purchase, sale and/or other dispositions of the Company's securities, as well as any listing standards, rules and regulations applicable to us. A copy of the Insider Trading Policy was filed as Exhibit 19.1 to our Annual Report on Form 10-K for the year ended
|
Bruker Proxy Statement 2025 |
30 |
Equity Award Grant Practices
The Compensation Committee reviews and approves individual equity grants for the named executive officers and Directors, as well as the total number of shares underlying grants made to all employees. The annual equity grants typically are reviewed and approved at the Compensation Committee's regular meeting during the third quarter of the fiscal year, although sign-on equity awards are generally approved by the Compensation Committee at the time an executive officer commences employment with Bruker. The grant date for the annual equity grants is the date of the Compensation Committee meeting at which they are approved. Administration of equity awards is managed by the Company's human resources department with specific instructions related to the timing of grants given by the Compensation Committee.The Committee does not take material nonpublic information into account when determining the timing and terms of equity awards.Similarly, we do not time the release of material, non-public information based on equity award grant dates, vesting events, or sale events.
The following table presents information regarding stock options issued to our NEOs in fiscal year 2024 during any period beginning four days before the filing of a periodic report or current report disclosing material, non-public information and ending one business day after the filing or furnishing of such report with the
|
|
Grant Date |
Number of securities underlying the awards (#) |
Exercise price of the award ($/Sh) |
Grant date fair value of the award(s) |
Percentage change in the |
|||||
|
Dr. Laukien |
|
77,255 |
68.20 |
1,583,024 |
0.35% |
|||||
|
|
|
13,742 |
68.20 |
309,805 |
0.35% |
|||||
|
|
|
5,486 |
62.00 |
123,679 |
0.35% |
|||||
|
|
|
13,666 |
62.00 |
308,092 |
0.35% |
|||||
|
|
|
15,407 |
62.00 |
187,500 |
0.35% |
Policies on Hedging and Pledging of Shares
Consistent with the Dodd-Frank Wall Street Reform Act and Consumer Protection Act of 2010, or the Dodd-Frank Act, our Insider Trading Policy prohibits all Board members and employees, including executive officers, from engaging in hedging or monetization transactions to lock in the value of that person's holdings of our securities, or hedging. For this purpose, "hedging" includes the purchase of financial instruments (such as prepaid variable forward contracts, equity swaps, collars and exchange funds), which may allow a person to continue to own our securities obtained as equity compensation or otherwise, but without the full risks and rewards of ownership.
Additionally, Board members and executive officers are prohibited from entering into any transactions that result in pledging, or using as collateral, our securities in order to secure personal loans or other obligations, including purchasing our stock on margin or holding our stock in a margin account.
Foreign Currency Policy
Assets and liabilities of the Company's foreign subsidiaries, where the functional currency is not the
|
31 |
Bruker Proxy Statement 2025 |
COMPENSATION COMMITTEE REPORT
The Compensation Committee has reviewed and discussed with management the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K, promulgated under the Securities Act of 1933, as amended, or the "Securities Act". Based on such review and discussions, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement on Schedule 14A.
This report is not soliciting material, is not deemed to be filed with the
This report has been furnished by the Compensation Committee of the Board of Directors.
|
Bruker Proxy Statement 2025 |
32 |
SUMMARY OFEXECUTIVE COMPENSATION
The following table summarizes the compensation earned by our named executive officers for the years ended
Summary Compensation Table
|
|
Year |
Salary ($) |
Bonus ($) |
Stock |
Option |
Non-Equity |
Change in |
All Other |
Total ($) |
|||||||||
|
|
2024 |
965,720 |
- |
1,755,034 |
1,583,024 |
1,187,562 |
- |
35,964 |
5,527,304 |
|||||||||
|
Chairman, President and Chief |
2023 |
926,096 |
- |
2,555,868 |
770,552 |
1,572,146 |
- |
34,099 |
5,858,761 |
|||||||||
|
Executive Officer |
2022 |
873,265 |
- |
2,481,426 |
759,972 |
906,371 |
- |
36,161 |
5,057,195 |
|||||||||
|
|
2024 |
635,385 |
- |
936,572 |
309,805 |
387,476 |
- |
19,032 |
2,288,269 |
|||||||||
|
Executive Vice President and Chief |
2023 |
603,538 |
- |
807,347 |
268,526 |
506,969 |
- |
17,922 |
2,204,302 |
|||||||||
|
Financial Officer |
2022 |
570,982 |
- |
776,302 |
264,276 |
270,588 |
- |
16,518 |
1,898,666 |
|||||||||
|
|
2024 |
502,761 |
- |
373,860 |
123,679 |
328,509 |
- |
136,223 |
1,465,032 |
|||||||||
|
|
2023 |
468,944 |
- |
300,300 |
99,889 |
342,657 |
- |
133,576 |
1,345,365 |
|||||||||
|
2022 |
425,800 |
- |
288,796 |
98,307 |
220,292 |
- |
117,245 |
1,150,440 |
||||||||||
|
|
2024 |
728,228 |
300,000 |
7 |
931,364 |
8 |
308,092 |
345,782 |
- |
28,642 |
2,642,108 |
|||||||
|
Executive Vice President & President, |
2023 |
689,939 |
451,500 |
823,404 |
273,840 |
459,363 |
- |
28,475 |
2,726,522 |
|||||||||
|
|
2022 |
648,298 |
400,000 |
791,740 |
269,526 |
363,676 |
- |
27,989 |
2,501,229 |
|||||||||
|
|
2024 |
477,485 |
1,515 |
9 |
562,500 |
10 |
187,500 |
10 |
200,596 |
- |
92,684 |
11 |
1,522,279 |
|||||
|
|
2023 |
452,530 |
- |
472,545 |
157,502 |
300,996 |
- |
88,663 |
11 |
1,472,236 |
||||||||
|
2022 |
413,888 |
- |
472,564 |
160,865 |
143,164 |
- |
89,939 |
11 |
1,280,420 |
|
|
Matching |
Automobile |
Dividends Paid |
Other 2024 ($) |
Pension |
|||||
|
|
13,800 |
- |
22,164 |
- |
- |
|||||
|
|
13,800 |
- |
5,232 |
- |
- |
|||||
|
|
- |
33,821 |
2,131 |
- |
103,271 |
|||||
|
|
13,800 |
8,400 |
6,442 |
- |
- |
|||||
|
|
- |
11,192 |
6,440 |
- |
75,052 |
|
33 |
Bruker Proxy Statement 2025 |
2024 Grantsof Plan-Based Awards
The following table sets forth certain information with respect to individual grants of plan-based awards to our named executive officers during the year ended
|
Estimated Future Payouts Under |
All Other |
All Other |
Exercise or |
Grant Date |
||||||||||||||
|
|
Type(1) |
Grant |
Threshold |
Target |
Maximum |
|||||||||||||
|
ICP |
N/A |
- |
1,367,176 |
2,426,737 |
||||||||||||||
|
|
RSU |
|
28,307 |
1,755,034 |
||||||||||||||
|
OPT |
|
77,255 |
68.20 |
1,583,024 |
||||||||||||||
|
ICP |
N/A |
- |
450,964 |
800,461 |
||||||||||||||
|
|
RSU |
|
15,106 |
936,572 |
||||||||||||||
|
OPT |
|
13,742 |
68.20 |
309,805 |
||||||||||||||
|
ICP |
N/A |
- |
305,291 |
541,892 |
||||||||||||||
|
|
RSU |
|
6,030 |
373,860 |
||||||||||||||
|
OPT |
|
5,486 |
62.00 |
123,679 |
||||||||||||||
|
ICP |
N/A |
- |
479,941 |
851,895 |
||||||||||||||
|
|
RSU |
|
15,022 |
931,364 |
||||||||||||||
|
OPT |
|
13,666 |
62.00 |
308,092 |
||||||||||||||
|
ICP |
N/A |
- |
314,105 |
557,536 |
||||||||||||||
|
|
RSU |
|
9,073 |
562,500 |
||||||||||||||
|
OPT |
|
8,319 |
62.00 |
187,500 |
||||||||||||||
|
Bruker Proxy Statement 2025 |
34 |
|
35 |
Bruker Proxy Statement 2025 |
Outstanding Equity Awards at
The following table provides information concerning outstanding equity-based plan awards, including unexercised options and stock that has not vested, for each of our named executive officers as of the end of 2024.
|
Option Awards |
Stock Awards |
|||||||||||||||||
|
|
Option |
Number of |
Number of |
Option |
Option |
Stock |
Number of |
Market Value |
||||||||||
|
|
|
14,717 |
- |
47.85 |
|
|||||||||||||
|
|
27,786 |
9,262 |
(2) |
89.45 |
|
|||||||||||||
|
|
20,274 |
20,276 |
(3) |
68.20 |
|
|||||||||||||
|
|
8,836 |
26,513 |
(4) |
72.99 |
|
|||||||||||||
|
|
- |
77,255 |
(5) |
68.20 |
|
|||||||||||||
|
|
7,407 |
(6) |
434,198 |
|||||||||||||||
|
|
20,012 |
(7) |
1,173,103 |
|||||||||||||||
|
|
28,891 |
(8) |
1,693,590 |
|||||||||||||||
|
|
28,307 |
(9) |
1,659,356 |
|||||||||||||||
|
|
||||||||||||||||||
|
|
8,004 |
- |
22.51 |
|
||||||||||||||
|
|
11,594 |
- |
34.02 |
|
||||||||||||||
|
|
11,344 |
- |
41.95 |
|
||||||||||||||
|
|
13,599 |
- |
43.50 |
|
||||||||||||||
|
|
7,363 |
2,455 |
(2) |
81.32 |
|
|||||||||||||
|
|
6,342 |
6,344 |
(3) |
62.00 |
|
|||||||||||||
|
|
2,791 |
8,376 |
(4) |
66.35 |
|
|||||||||||||
|
|
- |
13,742 |
(5) |
68.20 |
|
|||||||||||||
|
|
1,963 |
(6) |
115,071 |
|||||||||||||||
|
|
6,261 |
(7) |
367,020 |
|||||||||||||||
|
|
9,126 |
(8) |
534,966 |
|||||||||||||||
|
|
|
15,106 |
(9) |
885,514 |
||||||||||||||
|
|
5,828 |
- |
43.50 |
|
||||||||||||||
|
|
3,114 |
1,039 |
(2) |
81.32 |
|
|||||||||||||
|
|
2,359 |
2,360 |
(3) |
62.00 |
|
|||||||||||||
|
|
1,038 |
3,116 |
(4) |
66.35 |
|
|||||||||||||
|
|
- |
5,486 |
(5) |
62.00 |
|
|||||||||||||
|
|
831 |
(6) |
48,713 |
|||||||||||||||
|
|
2,330 |
(7) |
136,585 |
|||||||||||||||
|
|
3,395 |
(8) |
199,015 |
|||||||||||||||
|
|
6,030 |
(9) |
353,479 |
|||||||||||||||
|
|
||||||||||||||||||
|
|
58,843 |
- |
22.19 |
|
||||||||||||||
|
|
26,682 |
- |
27.07 |
|
||||||||||||||
|
|
22,695 |
- |
34.02 |
|
||||||||||||||
|
|
19,924 |
- |
41.95 |
|
||||||||||||||
|
|
19,329 |
- |
43.50 |
|
||||||||||||||
|
|
8,865 |
2,956 |
(2) |
81.32 |
|
|||||||||||||
|
|
6,468 |
6,470 |
(3) |
62.00 |
|
|||||||||||||
|
|
2,847 |
8,541 |
(4) |
66.35 |
|
|||||||||||||
|
|
- |
13,666 |
(5) |
62.00 |
|
|||||||||||||
|
|
2,364 |
(6) |
138,578 |
|||||||||||||||
|
|
6,386 |
(7) |
374,347 |
|||||||||||||||
|
|
9,308 |
(8) |
545,635 |
|||||||||||||||
|
|
15,022 |
(9) |
880,590 |
|||||||||||||||
|
|
||||||||||||||||||
|
|
17,635 |
- |
27.07 |
|
||||||||||||||
|
|
14,801 |
- |
34.02 |
|
||||||||||||||
|
|
12,994 |
- |
41.95 |
|
||||||||||||||
|
|
24,478 |
- |
43.50 |
|
||||||||||||||
|
|
10,900 |
3,634 |
(2) |
81.32 |
|
|||||||||||||
|
|
3,371 |
10,114 |
(4) |
66.35 |
|
|||||||||||||
|
|
- |
15,407 |
(5) |
62.00 |
|
|||||||||||||
|
|
2,906 |
(6) |
170,350 |
|||||||||||||||
|
|
11,022 |
(8) |
646,110 |
|||||||||||||||
|
|
16,936 |
(9) |
992,788 |
|||||||||||||||
|
Bruker Proxy Statement 2025 |
36 |
2024 OptionExercises and Stock Vested
The following table provides information regarding the number of shares acquired by our named executive officers upon the exercise of options or vesting of restricted stock awards and RSUs and the value realized at that time before payment of any applicable withholding taxes and brokerage commission.
|
Option Awards |
Stock Awards |
|||||||
|
|
Number of |
Value Realized |
Number of |
Value Realized |
||||
|
|
- |
- |
40,105 |
2,468,982 |
||||
|
|
- |
- |
11,153 |
685,240 |
||||
|
|
28,122 |
1,692,835 |
4,419 |
271,837 |
||||
|
|
- |
- |
12,946 |
797,033 |
||||
|
|
- |
- |
12,011 |
744,223 |
||||
PensionBenefits
Swiss Pension Plan. As an employee of our
Retirement Plan for
|
37 |
Bruker Proxy Statement 2025 |
Information about our contributions to the Swiss Pension Plan in which
2024 Pension Benefits Table
The following table provides information about the benefits provided for
|
|
Plan |
Number of Years |
Present Value of |
|||
|
|
Swiss Pension Plan |
6.67 |
1,128,289 |
In 2024,
2024 Non-Qualified Deferred Compensation Table
The following table provides information about 2024 activity relating to the personal pension scheme established for
|
|
Executive |
Registrant |
Aggregate Earnings in |
Aggregate Balance at Last Fiscal Year-End ($) |
||||
|
|
- |
75,052 |
104,180 |
993,852 |
There were no withdrawals or distributions from
|
Bruker Proxy Statement 2025 |
38 |
Securities Authorized For Issuance Under Equity Compensation Plans
The following table summarizes information regarding securities authorized for issuance under our equity compensation plans as of
|
Plan Category |
Number of |
Weighted- |
Number of |
|||
|
Equity compensation plans approved by security holders(1) |
1,739,931 |
|
5,038,453 |
|||
|
Equity compensation plans not approved by security holders |
N/A |
N/A |
N/A |
|||
|
1,739,931 |
|
5,038,453 |
Potential Payments upon Termination or Change-in-Control
The following information describes and quantifies certain compensation and benefits that would have been payable under existing agreements, plans, and arrangements if the named executive officer's employment had terminated on
Severance Benefits.The cash severance benefits contained in the employment agreements for
Equity Awards.The unvested equity awards held by each of the named executive officers as of
The Compensation Committee has discretion to revise or amend outstanding equity awards and may, at its discretion, accelerate vesting of any unvested option, RSU or stock awards, including in connection with a "Change in Control" of Bruker, as defined in our 2010 Plan or 2016 Plan, as applicable. Under these plans, a "Change in Control" occurs if: (a) within one year of any merger, consolidation, sale of a substantial part of our assets, or contested election, the persons who were directors of Bruker immediately before such transaction cease to constitute a majority of the
|
39 |
Bruker Proxy Statement 2025 |
Common Stock; (d) the dissolution or liquidation of Bruker is approved by its stockholders; or (e) the members of the Board as of the adoption dates of the 2010 Plan or 2016 Plan cease to represent at least two thirds of the Board, subject to certain exceptions.
Additionally, with respect to awards granted pursuant to the 2016 Plan, in the event of a Change in Control, if (a) an award is assumed or continued (including through conversion or substitution for a substantially similar award of the successor) and, within twenty four (24) months following the Change in Control (or such shorter period as specified in the applicable award agreement), the executive officer's employment is terminated without cause or is voluntarily terminated for good reason, or a double trigger provision, or (b) an award is not assumed or continued, any then outstanding awards of stock options will vest and become fully exercisable and any outstanding unvested awards of RSUs that are not performance-based will be treated as vested.
The values of (i) unvested, in-the-money stock options that would have been received by each of the named executive officers in the event of acceleration upon a Change in Control, assuming the Change in Control was effective
|
|
Unvested In-the- |
Unvested Restricted |
||
|
|
- |
4,960,249 |
||
|
|
- |
1,902,571 |
||
|
|
- |
737,791 |
||
|
|
- |
1,939,150 |
||
|
|
- |
1,809,248 |
Retirement Plans. The retirement plans provided for
In the event of termination of employment as of
In the event of termination of employment as of
Pay Ratio Disclosure
As required by Section 953(b) of the Dodd-Frank Act and Item 402(u) of Regulation S-K, we are providing the following disclosure about the ratio of the annual total compensation of Dr. Laukien, our Chairman, President and Chief Executive Officer, to the annual total compensation of our median employee.
For 2024, the annual total compensation of our median employee was
For purposes of reporting annual total compensation and the ratio of annual total compensation of the Chief Executive Officer to the median employee, both the Chief Executive Officer and median employee's annual total compensation were calculated consistent with the disclosure requirements of executive compensation under the Summary Compensation Table.
To identify the median employee, we examined the 2024 target total cash compensation, including annualized base salaries plus target performance bonus, incentive pay and commissions, for all individuals, excluding our Chief Executive Officer, who were employed by us as of
|
Bruker Proxy Statement 2025 |
40 |
Pay Versus Performance Disclosure
In accordance with rules adopted by the
|
Value of Initial Fixed |
||||||||||||||||
|
Fiscal Year |
Summary |
Compensation |
Average Summary |
Average |
Total |
|
Net |
Non- |
||||||||
|
2024 |
5,527,304 |
3,201,715 |
1,979,422 |
1,446,957 |
116.73 |
93.96 |
113.8 |
$2.41 |
||||||||
|
2023 |
5,858,761 |
6,267,895 |
1,937,106 |
2,094,178 |
145.89 |
100.00 |
428.5 |
$2.58 |
||||||||
|
2022 |
5,057,195 |
1,862,866 |
1,707,689 |
791,613 |
135.30 |
112.96 |
298.5 |
$2.34 |
||||||||
|
2021 |
5,594,539 |
14,300,157 |
1,966,675 |
3,821,804 |
165.58 |
169.92 |
280.6 |
$2.10 |
||||||||
|
2020 |
4,081,963 |
5,086,157 |
1,464,473 |
1,745,100 |
106.58 |
134.62 |
161.4 |
$1.35 |
||||||||
|
Fiscal Year |
Summary Compensation |
Exclusion of Stock |
Inclusion of Equity Values |
Compensation Actually |
||||
|
2024 |
5,527,304 |
(3,338,058) |
1,012,469 |
3,201,715 |
||||
|
2023 |
5,858,761 |
(3,326,420) |
3,735,554 |
6,267,895 |
||||
|
2022 |
5,057,195 |
(3,241,398) |
47,069 |
1,862,866 |
||||
|
2021 |
5,594,539 |
(3,158,589) |
11,864,207 |
14,300,157 |
||||
|
2020 |
4,081,963 |
(2,931,204) |
3,935,398 |
5,086,157 |
|
Fiscal Year |
Average Summary |
Average Exclusion of Change in Pension Value for Non-PEO NEOs ($) |
Average Exclusion |
Average Inclusion |
Average Inclusion |
Average |
||||||
|
2024 |
1,979,422 |
- |
(933,343) |
72,139 |
328,739 |
1,446,957 |
||||||
|
2023 |
1,937,106 |
- |
(800,838) |
33,978 |
874,423 |
2,094,178 |
||||||
|
2022 |
1,707,689 |
- |
(780,594) |
22,580 |
(158,062) |
791,613 |
||||||
|
2021 |
1,966,675 |
- |
(887,070) |
25,527 |
2,716,672 |
3,821,804 |
||||||
|
2020 |
1,464,473 |
- |
(813,899) |
35,553 |
1,058,973 |
1,745,100 |
|
41 |
Bruker Proxy Statement 2025 |
The amounts in the Inclusion of Equity Values columns in the tables above are derived from the amounts set forth in the following tables:
|
Fiscal Year |
Year-End |
Change in Fair Value |
Change in Fair Value |
Total - Inclusion of |
||||
|
2024 |
3,195,863 |
(1,324,022) |
(859,372) |
1,012,469 |
||||
|
2023 |
3,820,311 |
289,562 |
(374,319) |
3,735,554 |
||||
|
2022 |
3,791,720 |
(1,634,164) |
(2,110,487) |
47,069 |
||||
|
2021 |
3,414,084 |
4,953,463 |
3,496,660 |
11,864,207 |
||||
|
2020 |
3,992,454 |
555,746 |
(612,802) |
3,935,398 |
|
Fiscal Year |
Average Year-End Fair |
Average Change in Fair |
Average Change in Fair |
Total - Average Inclusion |
||||
|
2024 |
860,461 |
(327,867) |
(203,855) |
328,739 |
||||
|
2023 |
899,974 |
64,782 |
(90,333) |
874,423 |
||||
|
2022 |
710,201 |
(404,274) |
(463,989) |
(158,062) |
||||
|
2021 |
929,504 |
1,113,335 |
673,833 |
2,716,672 |
||||
|
2020 |
1,072,845 |
98,228 |
(112,100) |
1,058,973 |
|
Bruker Proxy Statement 2025 |
42 |
Relationship Between PEO and Average Non-PEO NEO Compensation Actually Paid and Company Total Shareholder Retu("TSR")
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our Non-PEO NEOs, and the cumulative TSR over the five most recently completed fiscal years for the Company and the SIC Code 3826 Laboratory Analytical Instruments TSR.
Relationship Between PEO and Non-PEO NEO Compensation Actually Paid and Net Income
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our Non-PEO NEOs, and our net income during the five most recently completed fiscal years.
|
43 |
Bruker Proxy Statement 2025 |
Relationship Between PEO and Average Non-PEO NEO Compensation Actually Paid and Non-GAAP Diluted EPS
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our Non-PEO NEOs, and our Non-GAAP Diluted EPS during the five most recently completed fiscal years.
Tabular List of the Most Important Financial Performance Measures
The following table presents the financial performance measures that the Company considers to have been the most important in linking Compensation Actually Paid to our PEO and non-PEOs for 2024 to Company Performance. The measures in this table are not ranked. See Appendix A for our definitions of these financial performance measures.
|
Organic Revenue Growth |
|
Non-GAAP Operating Profit |
|
Non-GAAP Diluted Earnings Per Share (EPS) |
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RELATED-PERSONS TRANSACTIONS
Review and Approval of Transactions with Related Persons
We have adopted a written Related-Person Transactions Policy, or the RPT Policy, that prohibits transactions involving Bruker and any related person, except in accordance with the RPT Policy. For purposes of the RPT Policy, "related persons" include (a) our executive officers, directors, director nominees, greater than 5% stockholders and any immediate family members of the foregoing and (b) any firm, academic department or other entity in which any of the foregoing persons is employed or is a partner or principal or holds a similar position or in which such person has more than a 10% beneficial ownership interest. The RPT Policy applies to (i) any transaction or series of transactions in which we are a participant and in which any related person has a direct or indirect interest, other than product or service sales or purchases entered into in the ordinary course of business involving aggregate amounts of less than $50,000 annually, and (ii) any material modification of an existing transaction.
Our RPT Policy provides for standing pre-approval of certain categories of transactions with related persons, including:
Under our RPT Policy, any related-person transaction not in one of the preceding categories must be submitted to our Executive Vice President and Chief Financial Officer for review and approval. Related-person transactions involving amounts of $500,000 or less, and product or service sales and purchases in the ordinary course of business involving aggregate amounts of $50,000 or more annually, are subject solely to review and approval, ratification, amendment, termination or rescission by our Executive Vice President and Chief Financial Officer. Any transaction in excess of $500,000 (other than a transaction involving product or service sales or purchases in the ordinary course of business), must also be forwarded to the Audit Committee for review and approval, ratification, amendment, termination or rescission, at the discretion of the Audit Committee.
In reviewing such transactions, our Executive Vice President and Chief Financial Officer and/or Audit Committee, as applicable, evaluates all material facts relating to the transaction and takes into account, among other factors deemed appropriate, the related person's relationship to Bruker and interest in the transaction, the terms of the transaction, including its aggregate value, whether the transaction is in the best interests of Bruker, the impact on a director's independence in the event the related person is a director, a family member of a director, or an entity in which a director is a partner, stockholder or executive officer and, if applicable, the availability of other sources of comparable products or services and whether the transaction is on terms comparable to the terms available to an unrelated third party. Neither the Executive Vice President and Chief Financial Officer nor any member of the Audit Committee may participate in the review of any transaction involving such person or any of his or her immediate family members.
Our Executive Vice President and Chief Financial Officer must report to the Audit Committee any approval or other action taken with respect to a related party transaction at or prior to the next Audit Committee meeting following such approval or other action. Additionally, our management must provide to the Audit Committee an annual report of any amounts paid or payable to, or received or receivable from, any related person. The Audit Committee is responsible for reviewing such reports and may make inquiries or take such actions as it deems appropriate upon consideration of all of the relevant facts and circumstances.
Transactions with Related Persons
Dr.
Payments under the terms of the foregoing lease were equal to the estimated fair market value of the respective rental.
During 2024, the Company made equipment sales to Quantum Analytics totaling $199,745. These sales were made in the ordinary course of business and comparable to those that would have been reached by unrelated parties in arm's-length transactions. Dr.
In March 2025, Dr.
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During 2024, the Company made equipment sales to PrognomIQ Inc. for $143,373. These sales were made in the ordinary course of business and comparable to those that would have been reached by unrelated parties in arm's-length transactions. Dr.
During 2024, the Company made equipment sales in the ordinary course of business to
Dr.
Dr.
Delinquent Section 16(A) Reports
Section 16(a) of the Exchange Act and the rules promulgated thereunder require our officers and directors and persons owning more than 10% of our outstanding Common Stock to file reports of ownership and changes in ownership with the
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AUDIT COMMITTEE REPORT
The Audit Committee, which operates pursuant to a written charter, assists the Board in fulfilling its oversight responsibilities by reviewing Bruker's financial reporting process on behalf of the Board. Management is responsible for Bruker's internal controls, the financial reporting process and compliance with laws and regulations and ethical business standards.
In this context, the Audit Committee reviewed and discussed with management and PwC, among other things, the scope of the audit to be performed, the results of the audit performed, PwC's audit of Bruker's internal control over financial reporting and the independent registered public accounting firm's fees for the services performed. Management represented to the Audit Committee that Bruker's consolidated financial statements were prepared in accordance with generally accepted accounting principles. Discussions about Bruker's audited financial statements included the auditors' judgments about the quality, not just the acceptability, of the accounting principles, the reasonableness of significant judgments and the clarity of disclosures.
The Audit Committee also discussed with PwC other matters required by Auditing Standard 1301,Communications with Audit Committees, as adopted by the Public Company Accounting Oversight, or PCAOB, including the quality, not just the acceptability, of the accounting principles, the reasonableness of significant judgments, and the clarity of the disclosures in the financial statements. PwC also provided to the Audit Committee written disclosures and the letter required by applicable requirements of the PCAOB regarding communications with the Audit Committee concerning independence. The Audit Committee discussed with PwC the registered public accounting firm's independence from Bruker and considered the compatibility of non-audit services with PwC's independence.
Based on the Audit Committee's discussion with management and PwC, and the Audit Committee's review of the representations of management and the report of PwC to the Audit Committee, the Audit Committee recommended to the Board that the audited financial statements be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the
This report is not soliciting material, is not deemed to be filed with the
This report has been furnished by the Audit Committee of the Board of Directors.
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PROPOSAL NO. 2
ADVISORY VOTE ON THE 2024 COMPENSATION OF NAMED EXECUTIVE OFFICERS
The Board recognizes the interest our stockholders have in the compensation of our executives. In recognition of that interest and as required by the Dodd-Frank Act and
The compensation of our named executive officers is disclosed in the CD&A, the compensation tables, and the related disclosures contained in this Proxy Statement. As described in our CD&A, we have adopted an executive compensation philosophy designed to deliver competitive total compensation, upon the achievement of financial and/or strategic performance objectives, which we believe will attract, motivate and retain leaders who will drive the creation of stockholder value. In order to implement that philosophy, the Compensation Committee has established a disciplined and rigorous process for the adoption of executive compensation programs and individual executive officer pay actions.
We believe that our compensation policies and decisions are focused on pay-for-performance principles, are strongly aligned with the long-term interests of our stockholders and provide an appropriate balance between risk and incentives. Stockholders are urged to read the CD&A section of this Proxy Statement, which discusses in greater detail how our compensation policies and procedures implement our executive compensation philosophy. We are asking our stockholders to indicate their support for our named executive officer compensation, as described in this Proxy Statement, by approval of the following resolution:
"RESOLVED, that the compensation paid to Bruker's named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion, is hereby APPROVED."
Your vote on this Proposal No. 2 is advisory, and therefore not binding on us, the Compensation Committee, or the Board. However, our Board and our Compensation Committee value input from stockholders and will consider the outcome of the vote when making future executive compensation decisions.
The Board recommends a vote "FOR" the approval, on an advisory basis, of the 2024 compensation of the named executive officers, as disclosed in the CD&A, the compensation tables, and related narratives in this Proxy Statement.
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PROPOSAL NO. 3
RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
A representative of
The Board recommends a vote "FOR" the ratification of the appointment of
Independent Registered Public Accounting Firm
Fees billed to us by our independent registered public accounting firm for fiscal years 2024 and 2023, all of which were approved by the Audit Committee, consisted of the following:
|
2024 ($) |
2023 ($) |
|||
|
Audit Fees(1) |
13,692,186 |
9,526,749 |
||
|
Audit Related Fees |
3,508 |
20,000 |
||
|
Tax Fees |
2,146,176 |
1,917,911 |
||
|
All Other Fees |
2,673 |
9,500 |
||
|
Total Fees |
15,844,543 |
11,489,160 |
Audit Fees. Audit fees for the years ended December 31, 2024, and 2023 were for the audit of our annual consolidated financial statements, including the integrated audit of internal control over financial reporting, the review of the consolidated financial statements included in our quarterly reports on Form 10-Q, audits of statutory filings, comfort letter procedures and review of other regulatory filings.
Audit-Related Fees. Audit-related fees include amounts related to attestation services not required by regulation and due diligence services related to mergers and acquisitions.
Tax Fees. Tax fees for the years ended December 31, 2024, and 2023 were for tax services provided to us, including tax compliance, tax advice and planning.
All Other Fees. All other fees for the years ended December 31, 2024, and 2023 relate to license fees for a web-based accounting research tool.
The Audit Committee approved 100% of the fees described above in accordance with the policy described below.
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Audit CommitteePre-Approval Policies and Procedures
In order to ensure that audit and permissible non-audit services proposed to be performed by our independent registered public accounting firm do not impair the auditor's independence from Bruker, the Audit Committee has adopted, and the Board has ratified, the following pre-approval policies and procedures.
Policies
Before engaging the independent registered public accounting firm to render the proposed service, the Audit Committee must either (i) approve the specific engagement, or specific pre-approval, or (ii) enter into the engagement pursuant to pre-approval policies and procedures established by the Audit Committee, or general pre-approval, provided the policies and procedures are detailed for the particular service, the Audit Committee is informed of each service, and such policies and procedures do not include delegation of the Audit Committee's responsibilities to management. The Audit Committee annually reviews and pre-approves the services that may be provided by the independent registered public accounting firm without obtaining specific pre-approval. The Audit Committee will add to or subtract from this list of general pre-approved services from time to time, based on subsequent determinations.
Unless a type of service has received general pre-approval, it requires specific pre-approval by the Audit Committee if it is to be provided by the independent registered public accounting firm. Any proposed services exceeding pre-approved cost levels or budgeted amounts also require specific pre-approval by the Audit Committee.
For both types of pre-approval, the Audit Committee considers whether such services are consistent with the
The Audit Committee also considers the relationship between fees for audit and permissible non-audit services in deciding whether to pre-approve any such services and may determine, for each fiscal year, the appropriate ratio between the total amount of fees for Audit, Audit-related and Tax services and the total amount of fees for certain permissible non-audit services classified as All Other services.
The Audit Committee may delegate either type of pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting.
Procedures
Pre-approval fee levels or budgeted amounts for all services to be provided by the independent registered public accounting firm are established annually by the Audit Committee. Any proposed services exceeding these levels or amounts require specific pre-approval by the Audit Committee, even if previously generally pre-approved.
Requests or applications to provide services that require specific approval by the Audit Committee must be submitted to the Audit Committee by both the independent registered public accounting firm and the Executive Vice President and Chief Financial Officer, and must include a joint statement as to whether, in their view, the request or application is consistent with the
The Audit Committee monitors the performance of all services provided by the independent auditor and assesses whether such services are in compliance with this policy.
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PROPOSAL NO. 4
APPROVAL OF THE ADOPTION OF THE
Overview
Our Board of Directors (the "Board") is seeking stockholder approval of the
The 2026 Plan is intended to continue to extend the type of incentives that have been provided under the 2016 Plan and its predecessor. If the 2026 Plan is approved by our stockholders, we will not grant any new awards under the 2016 Plan after its expiration on February 18, 2026, and it is expected that, beginning on February 19, 2026, we will grant new awards under the 2026 Plan. Outstanding awards under the 2016 Plan will continue to be governed by the 2016 Plan and the agreements under which they were granted.
Until its expiration on February 18, 2026, we will continue to have the authority to, and expect that we will, continue to grant awards under the 2016 Plan.
Subject to the adjustment and recycling provisions of the 2026 Plan (which are described below), the 2026 Plan authorizes the issuance or transfer of a maximum of up to 12,000,000 shares of Common Stock ("Shares"), consisting of:
Background
We believe that cash- and equity-based incentive awards are fundamental to our ability to attract, motivate and retain highly qualified and dedicated employees, directors and other service providers. We have worked closely with our compensation consultant to design the 2026 Plan to meet our internal compensation objectives, as well as the interests of our stockholders, as described more fully below. Accordingly, approving the 2026 Plan is in the best interest of our stockholders for at least the following reasons:
The 2026 Plan is structured to provide flexibility in designing equity incentive programs with a broad array of equity incentives, stock options, including nonqualified stock options or incentive stock options, stock awards (including restricted stock awards), stock units (including restricted stock units), stock appreciation rights ("SARs"), as well as cash-based awards and other stock-based awards. In addition, the 2026 Plan has been designed to include a number of provisions that are consistent with protecting the interests of stockholders and sound corporate governance practices, as described below.
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Key Features of the 2026 Plan
The 2026 Plan includes a number of features designed to protect our stockholders' interests and reflect corporate governance best practices, including the following:
Background for Requested Share Authorization
The number of Shares reserved for issuance under the 2026 Plan was determined, after consideration of a number of factors, including (i) the number of shares available under the 2016 Plan as of April 1, 2025, (ii) the Company's historical equity grant practices, including its "burate," which the Company's independent compensation consultant (
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Dilution Analysis
The table below shows our potential dilution levels based on the number of Shares outstanding as of April 1, 2025, the 6,000,0000 new Shares requested for issuance under the 2026 Plan, the 5,023,025 Shares remaining available for issuance under the 2016 Plan as of April 1, 2025, and the 1,710,919 Shares subject to outstanding equity awards granted under the 2016 Plan and its predecessor plan as of April 1, 2025 (together, the "Fully-diluted Shares"). The Board believes that the number of Shares requested under the 2026 Plan represents a reasonable amount of potential equity dilution and will allow us to continue granting equity awards.
|
Shares Outstanding as of April 1, 2025 |
151,521,040 |
|
|
Fully diluted Shares |
164,254,984 |
|
|
Potential Dilution of 6,000,000 Shares as a Percentage of Fully Diluted Shares |
3.7% |
BuRate
In connection with our stock-based compensation programs, we are committed to using equity incentive awards prudently and within reasonable limits. Accordingly, we closely monitor our past usage of Shares (referred to as "burate") each year and over time. The table below sets forth the following information regarding the awards granted under the 2016 Plan: (i) the burate for each of the last three calendar years and (ii) the average burate over the last three calendar years. The burate for a year has been calculated as follows: (1) all stock options and restricted stock units granted in the applicable year, divided by (2) the weighted average number of Shares outstanding for the applicable year.
|
Element |
2024 |
2023 |
2022 |
3-Year average |
||||
|
Stock Options Granted |
128,099 |
77,719 |
73,365 |
93,061 |
||||
|
Restricted Stock Units Granted |
453,762 |
354,265 |
291,015 |
366,347 |
||||
|
Total Granted |
581,861 |
431,984 |
364,380 |
459,408 |
||||
|
Weighted Average Shares Outstanding as of applicable fiscal year-end |
151,678,001 |
145,164,875 |
147,023,193 |
147,955,356 |
||||
|
BuRate |
0.38% |
0.30% |
0.25% |
0.31% |
The burate means that we used an annual average of 0.31% of the weighted average Shares outstanding for awards granted or earned over the past three years.
Summary of
The material terms of the 2026 Plan are summarized below. A copy of the full text of the 2026 Plan is attached to this proxy statement asAppendix B. This summary of the 2026 Plan is not intended to be a complete description of the 2026 Plan and is qualified in its entirety by the actual text of the 2026 Plan to which reference is made. Capitalized terms used, but not defined, in the following summary have the meaning assigned to those terms in the 2026 Plan.
Purpose
The 2026 Planis intended to provide participants with an incentive to contribute materially to the Company's growth by aligning the economic interests of the participants with those of the Company's stockholders.
Types of Awards
The 2026 Plan provides for the issuance of stock options (including incentive stock options and nonqualified stock options), SARs, stock awards, stock units, and cash-based awards and other stock-based awards to employees, non-employee directors, and consultants and advisors of the Company or its subsidiaries.
Administration
The 2026 Plan will be administered by the Compensation Committee or such other committee as the Board may from time to time designate (the "Committee"). The Committee can delegate authority to administer the 2026 Plan to one or more subcommittees of the Committee, as it determines to be appropriate. In addition, subject to compliance with applicable laws and applicable stock exchange requirements, the Committee may delegate some or all of its authority to an executive officer, with respect to grants of awards to employees or advisors and consultants who are not executive officers or directors subject to reporting obligations under Section 16 of the Exchange Act.
The Committee will determine (1) the individuals who will receive awards under the 2026 Plan; (2) the type, size, terms and conditions of awards under the 2026 Plan; (3) when grants of awards will be made and the duration of any applicable exercise or restriction period, including the criteria for exercisability and the acceleration of exercisability; (4) when to amend previously granted awards, subject to the limitations set forth in the 2026 Plan; (5) determine and adopt the terms and guidelines that apply to
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individuals living outside the
The term "Committee" in this description of the 2026 Plan will refer to the Committee, our Board, or any subcommittee, as applicable, that has authority with respect to a specific grant.
Shares Subject to the 2026 Plan
Subject to adjustment and recycling provisions described below, the 2026 Plan authorizes the issuance or transfer of up to 12,000,000 Shares, consisting of:
In addition, Shares underlying any outstanding award granted under the 2016 Plan or the 2026 Plan that, following the Effective Date of the 2026 Plan, expires, or is terminated, surrendered or forfeited for any reason without issuance of such Shares will again be available for awards under the 2026 Plan. Subject to adjustment, as described below, the aggregate number of Shares available for issuance or transfer under the 2026 Plan pursuant to incentive stock options cannot exceed 12,000,000 Shares.
The Shares issuable under the 2026 Plan may be drawn from Shares of authorized but unissued common stock or from Shares that we acquire, including Shares purchased on the open market.
Shares surrendered in payment of an option's exercise price, including options granted under the 2016 Plan, are not available for re-issuance under the 2026 Plan. Furthermore, Shares withheld or surrendered for payment of taxes with respect to awards, including such awards granted under the 2016 Plan, are not available for re-issuance. If SARs are granted, the full number of Shares subject to the SARs are considered issued under the 2026 Plan, without regard to the number of Shares issued upon exercise of the SARs. If grants of awards are settled in cash rather than Shares, any Shares that were previously subject to such awards will again be available for issuance or transfer under the 2026 Plan. If we repurchase the Shares on the open market with proceeds from an option's exercise price (including options granted under the 2016 Plan), then such Shares cannot be made available for issuance under the 2026 Plan.
The number of Shares available under the 2026 Plan will not be reduced by the Shares that are issued or transferred under awards made pursuant to an assumption, substitution, or exchange for previously granted awards of a company that we acquired in a transaction. Additionally, subject to applicable stock exchange listing and Code requirements, Shares available under an acquired company's stockholder approved plan, as adjusted, may be used by the Company for grants of awards under the 2026 Plan, and they will not reduce the 2026 Plan's Share reserve.
Non-Employee Director Limit
Subject to adjustment, as described below, the maximum aggregate grant date value of Shares (as determined for financial reporting purposes) granted to any non-employee director in a calendar year, taken together with any cash fees earned by such non-employee director for services rendered as a non-employee director during the calendar year, cannot exceed $750,000 in total value.
Adjustments
If there is any change in the number or kind of Shares outstanding because of (i) a stock dividend, spinoff, recapitalization, stock split, reverse stock split, or combination or exchange of shares; (ii) a merger, reorganization, or consolidation; (iii) a reclassification or change in par value of Shares; or (iv) any other extraordinary or unusual event affecting the outstanding common stock as a class without the Company's receipt of consideration, or if the value of outstanding Shares is substantially reduced because of a spinoff or the Company's payment of an extraordinary dividend or distribution, the Committee will equitably adjust the following:
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The Committee will make adjustments to reflect changes in the number, kind, or value or Shares issued to prevent, to the extent possible, the enlargement or dilution of rights and benefits under the 2026 Plan and for any outstanding awards, in each case subject to and consistent with applicable law. The Committee will eliminate any fractional Shares resulting from adjustment.
The Committee may also make adjustments to the terms and conditions of outstanding awards in recognition of unusual or nonrecurring events, including acquisitions and dispositions of business assets, which affect the Company, its subsidiaries or business units, or any financial statements of the Company or its subsidiaries, or in response to changes in applicable laws, regulations, or accounting principles. In the event of certain transactions that represent a change in control (as described below), the change in control provisions of the 2026 Plan apply.
Lastly, the Committee has sole discretion and authority to determine the adjustments to be made, and adjustments by the Committee are final, binding, and conclusive.
Eligibility
Employees and non-employee directors, and certain key advisors (including consultants and advisors of the Company) that provide services to us and our subsidiaries are eligible to participate in the 2026 Plan. The Committee will select which eligible services providers will receive grants of awards under the 2026 Plan. As of April 1, 2025, approximately 11,000 employees, 9 non-employee directors, and an estimated 400 consultants and advisors would have been eligible to participate in the 2026 Plan, if the 2026 Plan were in effect on such date. The Company historically has granted equity awards only to key employees above a specified grade level, which currently totals approximately 2,000 employees, and expects to continue that practice in the future under the 2026 Plan. The Company historically has not granted equity awards to consultants and advisors, and does not expect to grant equity awards to consultants and advisors under the 2026 Plan.
Vesting and Minimum Vesting Requirements
The Committee determines the vesting and exercisability terms of awards granted under the 2026 Plan and such awards will have regular vesting schedules that provide that no portion of an award will vest earlier than one year from the date of grant. However, (i) awards granted to non-employee directors will be deemed to satisfy this minimum vesting requirement if granted on the date of our annual meeting of stockholders and vest on the date of our annual meeting of stockholders immediately following the date of grant (but in any event, not less than 50 weeks), and (ii) up to 5% of the Shares reserved under the 2026 Plan as of the Effective Date (subject to adjustment described above) may be granted without regard to this minimum vesting requirement. The Committee may accelerate vesting of any award in its discretion.
Options
Under the 2026 Plan, the Committee may grant incentive stock options and nonqualified stock options. Incentive stock options may be granted to employees of the Company or any parent or subsidiary of the Company, according to Section 424 of the Code. Nonqualified stock options may be granted to employees, non-employee directors, and key advisors. The exercise price of an option granted under the 2026 Plan will be determined by the Committee but cannot be less than the fair market value of a Share on the date the option is granted. If an incentive stock option is granted to a 10% stockholder, the exercise price cannot be less than 110% of the fair market value of a Share on the date the option is granted.
The Committee will determine the term of an option, with a term limit of no more than 10 years from the date of grant. However, an incentive stock option that is granted to a 10% stockholder, cannot have a term that exceeds five years from the date of grant.
Subject to the minimum vesting requirements of the 2026 Plan, options will become exercisable according to the terms and conditions set by the Committee in the award agreement. The Committee may accelerate the exercisability of any outstanding options at any time and for any reason. The Committee will determine in the award agreement under what circumstances and during what time periods a participant may exercise an option after termination of employment or service. Any options granted to non-exempt employees cannot be exercisable for at least six months after the grant date, except as determined by the Committee.
A participant can exercise an option that has become exercisable by delivering a notice of exercise to the Company. The exercise price for any option is generally payable in cash or check. In certain circumstances, as permitted by the Committee, the exercise price may be paid by the surrender of Shares with an aggregate fair market value on the date the option is exercised equal to the exercise price; by payment through a broker in accordance with procedures established by the
Stock Awards
The Committee may grant stock awards of our common stock to anyone eligible under the 2026 Plan. Stock awards may be subject to restrictions as the Committee determines. The restrictions, if any, may lapse over a specified period or based on the satisfaction of pre-established criteria, as determined by the Committee, including, but not limited to, restrictions based on the achievement of performance goals. The award agreement will set the period of time during which the stock awards will be subject to restrictions, during which time a participant cannot sell, assign, transfer, pledge, or otherwise dispose of the shares of a stock award, except as permitted by the Committee.
If a participant ceases to be employed by or provide services to the Company during any restricted period, or if other specified conditions are not met, any unvested portion of the stock award will be forfeited, unless the Committee determines otherwise.
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Unless otherwise determined by the Committee, a participant will have the right to vote and the right to receive dividends or other distributions paid on the shares, subject to any restrictions, including the achievement of performance goals, that the Committee may determine.
Stock Units
The Committee may grant stock units to anyone eligible to participate in the 2026 Plan. Stock units represent hypothetical Shares, and each represents a right that a participant has to receive a Share or amount of cash based on the common stock's value, if and when specified conditions are met.
Stock units become payable if certain conditions or circumstances are met, including specified performance goals. The Committee may accelerate vesting or payment for any reason and at any time, provided that the acceleration complies with Section 409A of the Code. Payment for stock units can be made in Shares, cash, or any combination of the two as determined by the Committee. All unvested stock units are forfeited if the participant's employment or service is terminated for any reason, unless the Committee determines otherwise.
Stock Appreciation Rights
The Committee may grant SARs to anyone eligible for the 2026 Plan separately or in tandem with any option.
If a SAR is granted in tandem with an option, the number of SARs that are exercisable during a specified period will not exceed the number of Shares that the participant may purchase upon exercising the related option during such period. Upon exercising the related option, the related SARs will terminate, and upon the exercise of a SAR, the related option will terminate to the extent of an equal number of Shares. Generally, SARs may only be exercised while the participant is employed by, or providing services to, us or during an applicable period following termination. If a SAR is granted to a non-exempt employee, it may not be exercisable for at least six months after the date of grant.
When a participant exercises a SAR, the participant will receive the excess of the fair market value of the underlying common stock over the base amount of the SAR. The appreciation of a SAR will be paid in Shares, cash or both.
The term of any SAR cannot exceed 10 years from the date of grant. In the event that on the last day of the term of a SAR, the exercise is prohibited by applicable law, including a prohibition on purchases or sales of our common stock under our insider trading policy, the term of the SAR will be extended for a period of 30 days following the end of the legal prohibition, unless the Committee determines otherwise.
Cash-Based Awards and Other Stock-Based Awards
The Committee may grant cash-based awards, which are awards denominated and payable in cash rather than Shares, to anyone eligible to participate in the 2026 Plan, subject to terms and conditions set by the Committee. Likewise, the Committee may grant other stock-based awards that are based on or measured by our common stock, to anyone eligible to participate in the 2026 Plan, subject to the terms and conditions set by the Committee. Other stock-based awards are payable in cash, Shares, or a combination of the two, as determined by the Committee. The Committee may subject cash-based awards and other stock-based awards to such performance goals and/or other criteria or conditions as the Committee determines in its discretion.
Dividend Equivalents
The Committee may grant dividend equivalents in connection with stock units or other stock-based awards, either in the award agreement or at any point following the grant of the stock unit or other stock-based award. Dividends and dividend equivalents granted in connection with such an award may be paid currently or be accrued and vest and be paid only if and to the extent that the underlying award of stock units or other stock-based award is vested and paid. Dividend equivalents may be payable in cash or Shares and upon terms and conditions set by the Committee. Dividends and dividend equivalents may not be granted in connections with options or SARs.
Prohibition on Repricing
Except in connection with a corporate transaction involving the Company, the Committee may not, without obtaining stockholder approval, (i) amend the terms of any outstanding stock options or SARs to reduce the exercise price or base price, as applicable; (ii) cancel outstanding stock options or SARs in exchange for stock options or SARs with an exercise price or base price that is lower than the exercise price or base price of the original option or SAR; or (iii) cancel outstanding stock options or SARs with an exercise price or base price, as applicable, above the current stock price in exchange for cash or other securities.
Change in Control
In the event of a change in control where we are not the surviving corporation (or survive only as a subsidiary of another corporation), if outstanding grants are assumed by or replaced with grants (with respect to cash, securities or a combination thereof) that have comparable terms by the surviving corporation (or a parent or subsidiary of the surviving corporation), and, a
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participant's employment or service to the Company is terminated without cause or for good reason (each as defined in the 2026 Plan), in each case, upon or within 24 months following a change in control, the participant's awards become fully vested and exercisable as of the date of such termination and options shall remain exercisable for the remainder of their terms. If the vesting of any such awards is based, in whole or in part, on performance, and the applicable award agreement does not otherwise specify, the award will vest at the "target" level on a pro-rata basis for the portion of the performance period completed as of the effective date of the qualifying termination.
If there is a change in control and outstanding grants are not assumed by or replaced with grants that have comparable terms by the surviving company, unless the Committee specifies otherwise in an award agreement, then awards will become fully vested and exercisable as of the date of such change in control and options shall remain exercisable for the remainder of their terms. If the vesting of any such awards is based, in whole or in part, on performance, and the applicable award agreement does not otherwise specify, the award will vest at the "target" level on a pro-rata basis for the portion of the performance period completed as of the effective date of the qualifying termination. In this situation, the Committee may also, without a participant's consent, take one or more of the following actions:
In general terms, a change in control under the 2026 Plan occurs when:
Deferrals
The Committee may permit or require participants to defer receipt of the payment of cash or the delivery of Shares that would otherwise be due to the participant in connection with a grant under the 2026 Plan. The Committee will establish the rules and procedures applicable to any such deferrals, consistent with the requirements of Section 409A of the Code.
Valuation
The fair market value per Share on any relevant date under the 2026 Plan will be deemed to be equal to the closing sale price per Share during regular hours trading on the relevant date on Nasdaq (or any other national securities exchange on which our common stock is at the time primarily traded). If there is no closing selling price for common stock on the date in question, then the fair market value shall be the last reported sale price during regular trading hours on the last preceding date for which a sale was reported. On April 1, 2025, the fair market value per Share of our common stock was $40.38.
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57 |
Bruker Proxy Statement 2025 |
Withholding
All awards under the 2026 Plan are subject to applicable
The Committee may permit or require that our tax withholding obligation with respect to awards paid in our common stock be paid by having Shares withheld up to an amount that does not exceed the participant's minimum applicable withholding tax rate for
Transferability
Except as permitted by the Committee with respect to non-qualified stock options, only a participant may exercise rights under a grant during the participant's lifetime. A participant cannot transfer those rights except by will or by the laws of descent and distribution or, with respect to awards other than incentive stock options, pursuant to a domestic relations order. Upon death, the personal representative or other person entitled to succeed to the rights of the participant may exercise such rights. The Committee may provide in an award agreement that a participant may transfer non-qualified stock options and stock awards to family members, or one or more trusts or other entities for the benefit of or owned by family members, consistent with applicable securities laws.
Amendment; Termination
The Board may amend or terminate the 2026 Plan at any time, except that the Board must receive stockholder approval to do so if required to comply with the Code, applicable law, or applicable stock exchange requirements.
The 2026 Plan will terminate on May 28, 2035, unless terminated earlier by the Board or unless the Board, with stockholder approval, extends the term of the 2026 Plan.
If a termination or amendment occurs after an award is made, it will not materially impair the rights of a participant with respect to the award, unless the participant consents or the Committee acts in compliance with applicable law or other exceptions set forth in the 2026 Plan.
Establishment of Sub-Plans
Our Board may from time to time establish one or more sub-plans under the 2026 Plan to satisfy applicable blue sky, securities or tax laws of various jurisdiction. The Board will establish sub-plans by setting forth the Committee's discretionary limits under the 2026 Plan and any additional terms and conditions not otherwise inconsistent with the 2026 Plan.
Clawback
All grants of awards under the 2026 Plan will be subject to any applicable clawback or recoupment policies, share trading policies, and other policies that the Board or Committee may implement or approve at any time, including, but not limited to the Bruker Corporation Compensation Recoupment Policy. We may offset any payments due under the 2026 Plan to a participant where repayment is required by an applicable clawback or recoupment policy, subject to applicable law.
Subject to applicable law, the Committee may provide in any award agreement that if a participant breaches any restrictive covenant obligation or agreement between the participant and us, or otherwise engages in a material violation of any rules, policies, procedures or guidelines of the Company or its subsidiaries, or otherwise engages in activities that constitute cause either while employed by, or providing services to, us or within a specified period thereafter, all awards held by the participant will terminate, and we may rescind any exercise of an option or SAR and the vesting of any other award and delivery of Shares upon such exercise or vesting, as applicable on such terms as the Committee will determine, including the right to require that in the event of any rescission:
Payment by the participant will be made in such manner and on such terms and conditions as may be required by the Committee. We will be entitled to set off against the amount of any such payment any amounts that we otherwise owe to the participant.
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Bruker Proxy Statement 2025 |
58 |
Certain Federal Income Tax Aspects
The following is a summary of certain federal income tax consequences of awards under the 2026
Options
An optionee generally will not recognize taxable income upon the grant of a non-statutory option. Rather, at the time of exercise of the option, the optionee will recognize ordinary income for income tax purposes in an amount equal to the excess, if any, of the fair market value of the Shares purchased over the exercise price. We generally will be entitled to a tax deduction at such time and in the same amount, if any, that the optionee recognizes as ordinary income. The optionee's tax basis in any Shares received upon the exercise of an option will be the fair market value of the Shares on the date of exercise, and if the Shares are later sold or exchanged, then the difference between the amount received upon such sale or exchange and the fair market value of such Shares on the date of exercise will generally be taxable as long-term or short-term capital gain or loss (if the Shares are a capital asset of the optionee) depending upon the length of time such Shares were held by the optionee.
Incentive stock options are eligible for favorable
Stock Awards
A participant generally will not be taxed upon the grant of stock awards subject to restrictions, but rather will recognize ordinary income in an amount equal to the fair market value of the Shares at the time the Shares are no longer subject to a "substantial risk of forfeiture" (within the meaning of the Code). We generally will be entitled to a deduction at the time when, and in the amount that, the participant recognizes ordinary income on account of the lapse of the restrictions. A participant's tax basis in the Shares will equal their fair market value at the time the restrictions lapse, and the participant's holding period for capital gains purposes will begin at that time. Any cash dividends paid on the restricted stock before the restrictions lapse will be taxable to the participant as additional compensation (and not as dividend income). Under Section 83(b) of the Code, a participant may elect to recognize ordinary income at the time the Shares of stock are awarded in an amount equal to their fair market value at that time, notwithstanding the fact that such Shares of stock are subject to restrictions and a substantial risk of forfeiture. If such an election is made, no additional taxable income will be recognized by such participant at the time the restrictions lapse, the participant will have a tax basis in the Shares equal to their fair market value on the date of their award, and the participant's holding period for capital gains purposes will begin at that time. We generally will be entitled to a tax deduction at the time when, and to the extent that, ordinary income is recognized by such participant.
Stock Units
In general, the grant of stock units will not result in income for the participant or in a tax deduction for us. Upon the settlement of such an award in cash or shares, the participant will recognize ordinary income equal to the aggregate value of the payment received, and we generally will be entitled to a tax deduction at the same time and in the same amount.
Stock Appreciation Rights
A participant who is granted a SAR generally will not recognize ordinary income upon receipt of the SAR. Rather, at the time of exercise of such SAR, the participant will recognize ordinary income for
Cash-Based Awards and Other Stock-Based Awards
With respect to cash-based awards and other stock-based awards granted under the 2026 Plan, generally when the participant receives payment with respect to an award, the amount of cash and/or the fair market value of any Shares or other property received will be ordinary income to the participant, and we generally will be entitled to a tax deduction at the same time and in the same amount.
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59 |
Bruker Proxy Statement 2025 |
Impact of Section 409A
Section 409A of the Code applies to deferred compensation, which is generally defined as compensation earned currently, the payment of which is deferred to a later taxable year. Awards under the 2026 Plan are intended to be exempt from the requirements of Section 409A or to satisfy its requirements. An award that is subject to Section 409A and fails to satisfy its requirements will subject the holder of the award to immediate taxation, interest and an additional 20% tax on the vested amount underlying the award.
Section 162(m) of the Code
Section 162(m) of the Code generally disallows a tax deduction to a publicly held company for compensation in excess of $1 million paid to its "covered employees" which generally includes all named executive officers. While the Committee considers the tax deductibility of each element of executive compensation as a factor in our overall compensation program, the Committee retains the discretion to approve compensation that may not qualify for the compensation deduction.
New Plan Benefits
Future benefits under the 2026 Plan generally will be granted at the discretion of the Committee and are therefore not currently determinable. Because future grants of awards under the 2026 Plan, if approved, would be subject to the discretion of the Board or Committee, the amount and terms of future awards to particular participants or groups of participants are not determinable at this time. No awards have been previously granted that are contingent on the approval of the 2026 Plan.
The Board recommends that the stockholders vote "FOR" the approval of the 2026 Plan as set forth in this Proxy Statement for the Annual Meeting
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Bruker Proxy Statement 2025 |
60 |
OTHER INFORMATION
StockholderCommunications
The Board will give appropriate attention to written communications that are submitted by stockholders and will respond as it deems appropriate.
Communications are forwarded to all directors if they relate to important substantive matters and include suggestions or comments that
Stockholders who wish to send communications on any topic to the Board or an individual director should address such communications to
Householding of Proxy Materials
The
Once you have received notice from your broker, other nominee or us that they or we will be householding materials to your address, householding will continue until you are notified otherwise or until you revoke your consent. You may request to receive at any time, and we will then promptly deliver, a copy of our annual report or proxy statement, by sending a written request to us at:
If, at any time, (1) you no longer wish to participate in householding and would prefer to receive a separate annual report and/or proxy statement in the future or (2) you and another stockholder sharing the same address wish to participate in householding and prefer to receive a single copy of our annual report and/or proxy statement, please notify your broker or other nominee if your shares are held in a brokerage account or us if you hold registered shares. You can notify us by sending a written request to us at:
Time for Submission of Stockholder Proposals
Pursuant to Rule 14a-8 under the Exchange Act, stockholders may submit proposals for inclusion in Bruker's Proxy Statement and for consideration at the next annual meeting of its stockholders by submitting their proposals to in writing to
In order to submit a proposal for inclusion in the proxy materials for the 2026 Annual Meeting of Stockholders, a stockholder must do so in accordance the procedures set forth in Rule 14a-8 of the Exchange Act. To be eligible for inclusion, stockholder proposals must be received by us no later than December 12, 2025, the 120th day prior to the first anniversary of the date on which this Proxy Statement was first mailed to our stockholders.
Additionally, under our Amended and Restated Bylaws, no business may be brought before an annual meeting unless it is specified in the notice of meeting by or at the direction of the Board or by a stockholder entitled to vote who has delivered notice to
In addition to satisfying the foregoing advance notice requirements under our Amended and Restated Bylaws, to comply with the universal proxy rules under the Exchange Act, stockholders who intend to solicit proxies in support of director nominees other than the Company's director nominees must provide notice that includes the information required by Rule 14a-19 under the Exchange Act no later than March 30, 2026, which is 60 days prior to the anniversary date of the 2025 Annual Meeting date.
OtherMatters
Management knows of no matters which may properly be and are likely to be brought before the meeting other than the matters discussed in this Proxy Statement. However, if any other matters properly come before the meeting, the persons named in the enclosed proxy will vote in accordance with their best judgment.
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Bruker Proxy Statement 2025 |
Annual Report
A copy (without exhibits) of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, is included in the 2024 Annual Report provided to stockholders with this Proxy Statement. We will provide an additional copy of the 2024 Annual Report (without exhibits) to any stockholder, without charge, upon written request of such stockholder. Such requests should be addressed to the attention of Investor Relations at
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By order of the Board |
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Chairman, President and Chief Executive Officer |
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Bruker Proxy Statement 2025 |
62 |
APPENDIX A: RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Our Company reports its financial results in accordance with accounting principles generally accepted in
Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our company's reported results prepared in accordance with GAAP.
Additional information regarding our use of other non-GAAP financial measures, including how we define and calculate such non-GAAP financial measures, is included beginning on page 39 under Part II, Item 7- Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the
Below is a reconciliation of GAAP and Non-GAAP financial measures found on pages 24 through 27.
|
2024 |
2023 |
|||
|
Operating Profit |
$253.1 |
$436.9 |
||
|
Non-GAAP Adjustments: |
||||
|
Restructuring Costs |
24.7 |
22.3 |
||
|
Acquisition-Related Costs |
76.0 |
19.3 |
||
|
Purchased Intangible Amortization |
99.1 |
47.1 |
||
|
Acquisition-related litigation charges |
46.0 |
0.0 |
||
|
Other Costs |
19.1 |
20.7 |
||
|
Total Non-GAAP Adjustments |
264.9 |
109.4 |
||
|
Non-GAAP Operating Profit |
$518.0 |
$546.3 |
|
63 |
Bruker Proxy Statement 2025 |
|
2024 |
2023 |
|||
|
GAAP EPS (Diluted) |
$0.76 |
$2.90 |
||
|
Non-GAAP Adjustments: |
||||
|
Restructuring Costs |
0.17 |
0.15 |
||
|
Acquisition-Related Costs |
0.51 |
0.13 |
||
|
Purchased Intangible Amortization |
0.66 |
0.32 |
||
|
Acquisition-related litigation charges |
0.31 |
- |
||
|
Other Costs |
0.13 |
0.14 |
||
|
Bargain purchase gain (loss) and associated measurement period adjustments |
0.05 |
(0.98) |
||
|
Investments related adjustments |
0.16 |
0.10 |
||
|
Tax effect of above Non-GAAP adjustments |
(0.36) |
(0.17) |
||
|
Equity in income (losses) of unconsolidated investees, net of tax |
0.01 |
(0.01) |
||
|
Noncontrolling interests related to non-GAAP adjustments |
0.01 |
- |
||
|
Total Non-GAAP Adjustments |
1.65 |
(0.32) |
||
|
Non-GAAP EPS (Diluted) |
$2.41 |
$2.58 |
|
Bruker Proxy Statement 2025 |
64 |
APPENDIX B: 2026 INCENTIVE COMPENSATION PLAN
2026 INCENTIVE COMPENSATION PLAN
Effective as of the Effective Date, the
The purpose of the Plan is to provide employees of
The Company believes that the Plan will encourage the Participants to contribute materially to the growth of the Company, thereby benefiting the Company's stockholders, and will align the economic interests of the Participants with those of the stockholders.
The Plan is intended to replace the Prior Plan. No additional grants shall be made under the Prior Plan on or after the Effective Date. Outstanding grants under the Prior Plan shall continue in effect according to their terms.
The following terms shall have the meanings set forth below:
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Bruker Proxy Statement 2025 |
The Committee may modify the definition of Change in Control for a particular Award as the Committee deems appropriate to comply with Section 409A of the Code or otherwise. Notwithstanding the foregoing, if an Award constitutes deferred compensation subject to Section 409A of the Code and the Award provides for payment upon a Change in Control, then, for purposes of such payment provisions, no Change in Control shall be deemed to have occurred upon an event described in items (i) - (iv) above unless the event would also constitute a change in ownership or effective control of, or a change in the ownership of a substantial portion of the assets of, the Company under Section 409A of the Code.
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Bruker Proxy Statement 2025 |
66 |
|
67 |
Bruker Proxy Statement 2025 |
|
Bruker Proxy Statement 2025 |
68 |
|
69 |
Bruker Proxy Statement 2025 |
The Committee may grant Options to an Employee, Non-Employee Director or Key Advisor upon such terms as the Committee deems appropriate. The following provisions are applicable to Options:
|
Bruker Proxy Statement 2025 |
70 |
The Committee may issue or transfer shares of Company Stock to an Employee, Non-Employee Director or Key Advisor under a Stock Award, upon such terms as the Committee deems appropriate. The following provisions are applicable to Stock Awards:
|
71 |
Bruker Proxy Statement 2025 |
The Committee may grant Stock Units, each of which shall represent one hypothetical share of Company Stock, to an Employee, Non-Employee Director or Key Advisor upon such terms and conditions as the Committee deems appropriate. The following provisions are applicable to Stock Units:
The Committee may grant SARs to an Employee, Non-Employee Director or Key Advisor separately or in tandem with any Option. The following provisions are applicable to SARs:
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Bruker Proxy Statement 2025 |
72 |
The Committee may grant Cash-Based Awards, which are awards denominated in cash rather than shares of Company Stock and payable in cash, to any Employee, Non-Employee Director or Key Advisor, on such terms and conditions as the Committee shall determine. The Committee may grant Other Stock-Based Awards, which are awards (other than those described in Sections 7, 8, 9 and 10 of the Plan) that are based on or measured by Company Stock and may be payable in cash, Company Stock or any combination of the foregoing, to any Employee, Non-Employee Director or Key Advisor, on such terms and conditions as the Committee shall determine. Subject to Section 4(b), Cash-Based Awards and Other Stock-Based Awards may be awarded subject to the achievement of Performance Goals or other criteria or other conditions, as the Committee shall determine.
The Committee may grant Dividend Equivalents in connection with Stock Units or Other Stock-Based Awards in an applicable Award Agreement or at any point following the grant of such Award. Dividend Equivalents may be paid currently or accrued as contingent cash obligations and may be payable in cash or shares of Company Stock, and upon such terms and conditions as the Committee shall determine. For the avoidance of doubt, dividends or Dividend Equivalents shall not be granted in connection with Options or SARs.
|
73 |
Bruker Proxy Statement 2025 |
The Committee may permit or require a Participant to defer receipt of the payment of cash or the delivery of shares that would otherwise be due to such Participant in connection with any Award. If any such deferral election is permitted or required, the Committee shall establish rules and procedures for such deferrals and may provide for interest or other earnings to be paid on such deferrals. The rules and procedures for any such deferrals shall be consistent with applicable requirements of Section 409A of the Code.
No Company Stock shall be issued or transferred in connection with any Award hereunder unless and until all legal requirements applicable to the issuance or transfer of such Company Stock have been complied with to the satisfaction of the Committee. The Committee shall have the right to condition any Award made to any Participant hereunder on such Participant's undertaking in writing to comply with such restrictions on the Participant's subsequent disposition of such shares of Company Stock as the Committee shall deem necessary or advisable, and certificates, or electronic book entry equivalents, representing such shares may be legended to reflect any such restrictions. Certificates, or electronic book entry equivalents, representing shares of Company Stock issued under the Plan may be subject to such stop-transfer orders and other restrictions as may be required by applicable
|
Bruker Proxy Statement 2025 |
74 |
laws, regulations and interpretations, including any requirement that a legend be placed thereon. No Participant shall have any right as a stockholder with respect to Company Stock covered by an Award until shares have been issued to the Participant.
|
75 |
Bruker Proxy Statement 2025 |
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Bruker Proxy Statement 2025 |
76 |
***
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77 |
Bruker Proxy Statement 2025 |
Attachments
Disclaimer
Bruker Corporation published this content on April 11, 2025, and is solely responsible for the information contained herein. Distributed via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission,, on April 11, 2025 at 20:31 UTC.


Proxy Statement (Form DEF 14A)
Proxy Statement (Form DEF 14A)
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