(b)
Severance Related payments includes severance payments due to the executive in connection with his termination (as described in “Narrative Supplement to the 2022 Summary Compensation Table and the 2022 Grants of Plan-Based Awards Table” above) that may become payable as a result of such termination.
(c)
The amount reported in this row represents the present value of continuing Mr. Robusto’s life insurance benefit at the same level and cost to him as immediately preceding the date of termination for 24 months in the event of termination without cause or for good reason, and 12 months in the event of death or disability.
As of December 31, 2022, only Mr. Robusto has a severance arrangement with the Company.
The following would have become payable under existing equity-based plans if the subject NEO’s employment had terminated on December 31, 2022 in the case of retirement:
Mr. Haefner — $698,646
The following would have become payable under existing equity-based plans if the subject NEO’s employment had terminated on December 31, 2022 in the case of death or disability:
Mr. Lindquist — $1,379,547 ; Mr. Haefner — $698,646; Mr. Worman — $6,653,995 ; Mr. Haase — $1,847,550; Mr. Franzetti — $2,752,673
2022 PAY RATIO DISCLOSURE
We are committed to providing a comprehensive total rewards program to attract, retain, and reward highly qualified, diverse and productive employees. The total rewards program emphasizes alignment of employee efforts to support our corporate strategies. The components of the program include compensation, benefits, learning and development opportunities and recognition of employee performance. We strive to remain externally competitive in relevant labor markets while maintaining internal equity. The program also promotes fiscally responsible pay decisions, encourages efficient use of our resources and ensures compliance with applicable legal and contractual requirements.
In 2022, the annual total compensation of our Chief Executive Officer, Dino Robusto, was $15,068,389.
The annual total compensation of our median employee was $127,337.
As a result, the ratio of the annual total compensation of our CEO to our median employee was 118:1.
In order to estimate our CEO pay ratio, we first determined our employee population using a determination date of December 31, 2022. We identified the median employee using a compensation measure that incorporates base salary, overtime and annual bonus. For employees hired during the year, their compensation was annualized to reflect a full year of wages. We do not include independent contractors in our determination.
Once the median employee is identified, the annual total compensation for the median employee other than the CEO is calculated using the same methodology we use to calculate Total Annual Compensation for our named executive officers as set forth in the “2022 Summary Compensation Table”.
The SEC’s rules requiring pay ratio disclosure allow companies to exercise a significant amount of flexibility in making a determination as to who is the median employee and does not mandate that each public company use the same method. In addition, our compensation philosophy means fair pay based on a person’s role in the Company, a subjective determination of the market value of that person’s job and that person’s performance in that position. As a result, the annual total compensation of our median employee is unique to that person and is not a good indicator of the annual total compensation of any of our other employees and is not comparable to the annual total compensation of employees at other companies. Similarly, we would not expect that the ratio of the annual total compensation of our CEO to our median employee to be a number that can be compared to the ratio determined by other companies in any meaningful fashion.