Thermo Fisher Scientific: Executive Compensation & Stock Awards Detailed
Ticker: TMO · Form: DEF 14A · Filed: 2024-04-09T00:00:00.000Z
Sentiment: neutral
Topics: executive-compensation, stock-options, restricted-stock-units, sec-filing
Related Tickers: TMO
TL;DR
Thermo Fisher's DEF 14A details how they value stock options & RSUs for execs using Black-Scholes & performance metrics.
AI Summary
Thermo Fisher Scientific Inc. filed a DEF 14A on April 9, 2024, detailing executive compensation and stock-based awards. The filing outlines the methodologies for calculating the fair value of stock options and restricted stock units (RSUs), including the use of the Black-Scholes model for options and adjustments based on stock prices and performance metrics for RSUs. These calculations are crucial for reporting the value of compensation granted to key employees.
Why It Matters
This filing provides transparency into how Thermo Fisher Scientific values executive compensation, impacting investor understanding of potential dilution and the alignment of management incentives with shareholder value.
Risk Assessment
Risk Level: low — This filing is a routine disclosure of executive compensation valuation methods and does not present new financial risks.
Key Players & Entities
- THERMO FISHER SCIENTIFIC INC. (company) — Filer
- 0000097745 (company) — Central Index Key
- Black-Scholes option pricing model (dollar_amount) — Valuation method for stock options
FAQ
What is the primary purpose of a DEF 14A filing?
A DEF 14A filing, like the one from Thermo Fisher Scientific Inc., is used to solicit shareholder votes or provide information to shareholders regarding annual meetings, including details on executive compensation, director elections, and other corporate governance matters.
How does Thermo Fisher Scientific calculate the fair value of stock options?
Thermo Fisher Scientific calculates the fair value of stock options using the Black-Scholes option pricing model as of the date of grant, with adjustments made using updated assumptions and stock prices as of each measurement date.
What factors are considered when valuing performance-based restricted stock units (RSUs)?
For performance-based RSUs, Thermo Fisher Scientific calculates grant date fair values using the stock price and performance accrual modifiers, assuming target performance. Adjustments are made using the stock price and performance accrual modifier as of the applicable year-end and the date of vest.
When was Thermo Fisher Scientific's most recent fiscal year end mentioned in the filing?
The most recent fiscal year end mentioned in the filing for Thermo Fisher Scientific Inc. is December 31 (1231).
What is the filing date of this DEF 14A for Thermo Fisher Scientific Inc.?
The DEF 14A filing for Thermo Fisher Scientific Inc. was filed on April 9, 2024.
From the Filing
0001193125-24-090173.txt : 20240409 0001193125-24-090173.hdr.sgml : 20240409 20240409071658 ACCESSION NUMBER: 0001193125-24-090173 CONFORMED SUBMISSION TYPE: DEF 14A PUBLIC DOCUMENT COUNT: 125 CONFORMED PERIOD OF REPORT: 20240522 FILED AS OF DATE: 20240409 DATE AS OF CHANGE: 20240409 FILER: COMPANY DATA: COMPANY CONFORMED NAME: THERMO FISHER SCIENTIFIC INC. CENTRAL INDEX KEY: 0000097745 STANDARD INDUSTRIAL CLASSIFICATION: MEASURING & CONTROLLING DEVICES, NEC [3829] ORGANIZATION NAME: 08 Industrial Applications and Services IRS NUMBER: 042209186 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEF 14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08002 FILM NUMBER: 24831109 BUSINESS ADDRESS: STREET 1: 168 THIRD AVENUE CITY: WALTHAM STATE: MA ZIP: 02451 BUSINESS PHONE: 7816221000 MAIL ADDRESS: STREET 1: 168 THIRD AVENUE CITY: WALTHAM STATE: MA ZIP: 02451 FORMER COMPANY: FORMER CONFORMED NAME: THERMO ELECTRON CORP DATE OF NAME CHANGE: 19920703 DEF 14A 1 d531012ddef14a.htm DEF 14A DEF 14A DEF 14A false 0000097745 Stock option grant date fair values are calculated based on the Black-Scholes option pricing model as of date of grant. Adjustments have been made using stock option fair values as of each measurement date using the stock price as of the measurement date and updated assumptions (i.e., term, volatility, dividend yield, risk free rates) as of the measurement date. Performance-based restricted stock unit grant date fair values are calculated using the stock price and performance accrual modifiers, where relevant, as of date of grant assuming target performance. Adjustments have been made using the stock price and performance accrual modifier as of the applicable year end and as of the date of vest. Time-based restricted stock unit grant date fair values are calculated using the stock price as of date of grant. Adjustments have been made using the stock price as of the applicable year end and as of each date of vest. Amounts presented are averages for the entire group of NEOs (excluding our CEO). 0000097745 2023-01-01 2023-12-31 0000097745 2022-01-01 2022-12-31 0000097745 2021-01-01 2021-12-31 0000097745 2020-01-01 2020-12-31 0000097745 tmo:AdjustmentsForStockAndOptionAwardsMember ecd:NonPeoNeoMember 2020-01-01 2020-12-31 0000097745 tmo:FairValueAtYearEndOfAwardsGrantedDuringTheCoveredFiscalYearThatAreOutstandingAndUnvestedAtYearEndMember ecd:NonPeoNeoMember 2020-01-01 2020-12-31 0000097745 tmo:FairValueAtYearEndOfAwardsGrantedDuringTheCoveredFiscalYearThatAreOutstandingAndUnvestedAtYearEndMember ecd:PeoMember 2020-01-01 2020-12-31 0000097745 tmo:YearOverYearChangeInFairValueOfAwardsGrantedInAnyPriorFiscalYearThatAreOutstandingAndUnvestedAtYearEndMember ecd:NonPeoNeoMember 2020-01-01 2020-12-31 0000097745 tmo:YearOverYearChangeInFairValueOfAwardsGrantedInAnyPriorFiscalYearThatAreOutstandingAndUnvestedAtYearEndMember ecd:PeoMember 2020-01-01 2020-12-31 0000097745 tmo:VestingDateFairValueOfAwardsGrantedAndVestingDuringSuchYearMember ecd:PeoMember 2020-01-01 2020-12-31 0000097745 tmo:VestingDateFairValueOfAwardsGrantedAndVestingDuringSuchYearMember ecd:NonPeoNeoMember 2020-01-01 2020-12-31 0000097745 tmo:ChangeAsOfTheVestingDateFromTheEndOfThePriorFiscalYearInFairValueOfAwardsGrantedInAnyPriorFiscalYearForWhichVestingConditionsWereSatisfiedDuringSuchYearMember ecd:NonPeoNeoMember 2020-01-01 2020-12-31 0000097745 tmo:ChangeAsOfTheVestingDateFromTheEndOfThePriorFiscalYearInFairValueOfAwardsGrantedInAnyPriorFiscalYearForWhichVestingConditionsWereSatisfiedDuringSuchYearMember ecd:PeoMember 2020-01-01 2020-12-31 0000097745 tmo:AdjustmentsForDefinedBenefitAndActuarialPensionPlansMember ecd:NonPeoNeoMember 2020-01-01 2020-12-31 0000097745 tmo:AdjustmentsForDefinedBenefitAndActuarialPensionPlansMember ecd:PeoMember 2020-01-01 2020-12-31 0000097745 tmo:AdjustmentsForStockAndOptionAwardsMember ecd:PeoMember 2020-01-01 2020-12-31 0000097745 tmo:FairValueAtYearEndOfAwardsGrantedDuringTheCoveredFiscalYearThatAreOutstanding