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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934
Filed by the Registrant ☒
Filed by a Party other than the Registrant ☐
Check the appropriate box:
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material Pursuant to §240.14a-12
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material Pursuant to §240.14a-12
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EMCOR GROUP, INC.
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(Name of Registrant as Specified In Its Charter)
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EMCOR GROUP, INC.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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No fee required.
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Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.
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Fee paid previously with preliminary materials.
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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Title of each class of securities to which transaction applies:
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Aggregate number of securities to which transaction applies:
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
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Fee paid previously with preliminary materials.
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Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
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EMCOR GROUP, INC.
301 Merritt Seven

Norwalk, Connecticut 06851
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NOTICE OF ANNUAL MEETING
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To the Stockholders of EMCOR Group, Inc.:
The Annual Meeting of Stockholders of EMCOR Group, Inc. will be held at The Delamar Hotel, 275 Old Post Road, Southport,301 Merritt Seven, Norwalk, Connecticut on Thursday, June 2, 20168, 2023 at 10:00 A.M. (local time) for the following purposes:
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To elect ten directors to serve until the next annual meeting and until their successors are duly elected and qualified.
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To consider a non-binding advisory resolution approving executive compensation.
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To ratify the appointment of Ernst & Young LLP as independent auditors for 2016.
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To consider a shareholder proposal regarding proxy access, if properly presented.
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To transact such other business as may properly come before the meeting or any adjournment thereof.
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To elect the nine directors identified in this Proxy Statement to serve until the next Annual Meeting and until their successors are duly elected and qualified.
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To consider a non-binding advisory resolution approving named executive officer compensation.
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To consider a non-binding advisory resolution on the frequency of the non-binding advisory vote on executive compensation.
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To approve an amendment to the Company’s Restated Certificate of Incorporation regarding the size of the Board of Directors.
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To approve an amendment to the Company’s Restated Certificate of Incorporation to reflect Delaware law provisions allowing officer exculpation.
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To approve an amendment to the Company’s Restated Certificate of Incorporation to select an exclusive forum for certain claims.
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To ratify the appointment of Ernst & Young LLP as our independent auditors for 2023.
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To consider a stockholder proposal regarding an independent board chairperson, if properly presented.
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To transact such other business as may properly come before the meeting or any adjournment thereof.
The Board of Directors has fixed the close of business on April 7, 201611, 2023 as the record date for determination of stockholders entitled to receive notice of, and to vote at (in person, by remote communication or by legally-appointed proxy), our Annual Meeting and any adjournment thereof.
Your attention is respectfully directed to the accompanying Proxy Statement.
By Order of the Board of Directors
Maxine L. Mauricio
Corporate Secretary
Norwalk, Connecticut
April 20, 2016
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By Order of the Board of Directors
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Maxine L. Mauricio
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Corporate Secretary
Norwalk, Connecticut
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April 25, 2023
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EMCOR GROUP, INC.
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PROXY STATEMENT
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QUESTIONS AND ANSWERS ABOUT THE 20162023 ANNUAL MEETING OF STOCKHOLDERS
What is the purpose of this Proxy Statement?
The EMCOR Board of Directors is soliciting proxies from holders of our Common Stock to vote on the matters to be considered at the 20162023 Annual Meeting of Stockholders (the “Annual Meeting”) to be held at The Delamar Hotel, 275 Old Post Road, Southport,301 Merritt Seven, Norwalk, Connecticut on Thursday, June 2, 20168, 2023 at 10:00 A.M. (local time).
What is the Notice of Internet Availability of Proxy Materials?
We have elected to provide access to our proxy materials on the Internet, consistent with the rules of the Securities and Exchange Commission. Accordingly, we are mailing a Notice of Internet Availability of Proxy Materials to our stockholders.stockholders of record as of April 11, 2023. You can access our proxy materials on the website referred to in the Notice of Internet Availability of Proxy Materials or you may request printed versions of our proxy materials for the Annual Meeting. Instructions on how to access our proxy materials on the Internet or to request printed versions are provided in the Notice of Internet Availability of Proxy Materials. In addition, you may request to receive proxy materials in printed form by mail or electronically by emaile-mail on an ongoing basis.
The Notice of Internet Availability of Proxy Materials is a document that:
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Indicates that our Notice of 20162023 Annual Meeting of Stockholders and Proxy Statement and our 20152022 Annual Report are available at www.proxyvote.com;
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Provides instructions on how holders of our Common Stock may vote their shares; and
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Indicates how holders of our Common Stock may request printed copies of these materials, including the proxy card or a voting instruction form.
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We will begin distributing the Notice of Internet Availability of Proxy Materials on or about April 20, 2016.25, 2023.
For those stockholders who have requested printed copies, we will first send or deliver copies of the proxy materials for our Annual Meeting and our 20152022 Annual Report on or about April 20, 2016.25, 2023.
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Important Notice Regarding the Availability of Proxy Materials for the

Annual Meeting to be Held on June 2, 20168, 2023
We have sent or are sending the Notice of Internet Availability of Proxy Materials, which indicates that this Notice of 20162023 Annual Meeting of Stockholders and Proxy Statement and our 20152022 Annual Report will be made available at www.proxyvote.com. If you wish to receive paper or e-mail copies of any of these materials, please follow the instructions on your Notice of Internet Availability of Proxy Materials and/or www.proxyvote.com. These materials are also available on our website at www.emcorgroup.com/​proxyannualreport.
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What items of business will be voted on at the Annual Meeting?
At the meeting,Annual Meeting, we will:
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Vote for the election of 10 directors;
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Consider a non-binding advisory resolution approving executive compensation, as described in the “Compensation Discussion and Analysis,” executive compensation tables, and accompanying narrative disclosures below;
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Consider the ratification of the appointment of Ernst & Young LLP to serve as our independent auditors for 2016; and
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To consider a shareholder proposal regarding proxy access, if properly presented.
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Vote for the election of the 9 director nominees identified in this Proxy Statement;
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Consider a non-binding advisory resolution approving named executive officer compensation, as described in the “Compensation Discussion and Analysis,” executive compensation tables, and accompanying narrative disclosures of this Proxy Statement;
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Consider a non-binding advisory resolution on the frequency of the non-binding advisory stockholder resolution on executive compensation;
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Consider an amendment to the Company’s Restated Certificate of Incorporation regarding the size of the Board of Directors;
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Consider an amendment to the Company’s Restated Certificate of Incorporation to reflect Delaware law provisions allowing officer exculpation;
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Consider an amendment to the Company’s Restated Certificate of Incorporation to select an exclusive forum for certain claims;
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Consider the ratification of the appointment of Ernst & Young LLP to serve as our independent auditors for 2023; and
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Consider a stockholder proposal regarding an independent board chairperson, if properly presented.
Who is entitled to vote at the Annual Meeting?
Holders of our Common Stock as of the record date of April 7, 201611, 2023 are entitled to notice of, and to vote at (in person, by remote communication or by legally-appointed proxy), the Annual Meeting and any postponement or adjournment of the meeting.Annual Meeting. For ten days before the Annual Meeting, a list of stockholders entitled to vote will be available for inspection at our offices located at 301 Merritt Seven, 6th Floor, Norwalk, Connecticut during ordinary business hours.
How does the Board of Directors recommend holders of Common Stock vote on the business of the meeting?Annual Meeting?
The Board of Directors recommends stockholders vote their shares:
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“FOR” the election of each of the 10 director nominees identified in this Proxy Statement;
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“FOR” the adoption of the advisory resolution approving executive compensation;
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“FOR” the ratification of the appointment of Ernst & Young LLP to serve as our independent auditors for 2016; and
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“AGAINST” the shareholder proposal regarding proxy access.
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“FOR” the election of each of the 9 director nominees identified in this Proxy Statement;
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“FOR” the adoption of the advisory resolution approving named executive officer compensation;
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In favor of holding a non-binding advisory vote on executive compensation every “1 YEAR”;
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“FOR” the amendment to the Company’s Restated Certificate of Incorporation regarding the size of the Board of Directors;
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“FOR” the amendment to the Company’s Restated Certificate of Incorporation to reflect Delaware law provisions allowing officer exculpation;
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“FOR” the amendment to the Company’s Restated Certificate of Incorporation to select an exclusive forum for certain claims;
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“FOR” the ratification of the appointment of Ernst & Young LLP to serve as our independent auditors for 2023; and
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“AGAINST” the stockholder proposal regarding an independent board chairperson.
How many shares can vote at the Annual Meeting?
At the close of business on April 7, 2016,11, 2023, we had 60,689,52347,584,362 shares of Common Stock outstanding, and each of those shares is entitled to one vote.
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How many shares must be present or represented at the Annual Meeting to conduct business?
Under our Second Amended and Restated By-laws,By-Laws, which we refer to as our “By-Laws,” the holders of a majority of our shares of Common Stock outstanding on the record date, present in person, by remote communication or by proxy at the Annual Meeting, constitute a quorum to conduct business at the Annual Meeting. Abstentions and broker non-votes will be treated as present for purposes of determining a quorum.
What vote is required to approve each of the items of business?
AWith respect to item 1, a majority of the votes cast is required for the election of directors in an uncontested election (which is the case for the election of directors at the Annual Meeting). A majority of the votes cast means that the number of votes cast “for” a nominee must exceed the number of votes cast “against” or “abstain” with respect to that nominee.nominee for such nominee to be elected. Our Corporate Governance Guidelines contain details and procedures to be followed in the event one or more director nominees do not receive a majority of the votes cast at the Annual Meeting.
The affirmative vote of An abstention on item 1 will have the holderseffect of a majority of the shares of our Common Stock present in person or represented by proxy at the Annual Meeting and entitled to vote is required to approve items 3 and 4 above, and any other matteragainst that may properly come before the meeting.item.
Because we are asking in item 2 above for a non-binding, advisory vote approving our named executive officer compensation, there is no “required vote” that would constitute approval. We value the opinions expressed by our stockholders on this advisory vote and our Board of Directors’ Compensation and Personnel Committee, which is responsible for overseeing and administering our executive compensation programs,
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will consider the outcome of the votes cast “for” and “against”non-binding advisory vote when designing our compensation programs and making future compensation decisions for our named executive officers. Abstentions and broker non-votes, if any, will not have any effect on the results of those deliberations.
Item 3 also calls for a non-binding, advisory vote. Our Board of Directors has recommended an annual vote. However, if another frequency receives more votes, our Board of Directors will take that fact into account when making its decision on how often to hold executive compensation advisory votes. Abstentions and broker non-votes, if any, will not have any effect on the results of those deliberations.
The affirmative vote of a majority of the votes cast at the Annual Meeting or represented by proxy at the Annual Meeting is required to approve item 4, item 5, item 6, item 7 and item 8 above, and any other matter that may properly come before the meeting. An abstention on item 4, item 5, item 6, item 7 or item 8 will have no effect on the voting results for those items.
The Board recommends a vote “FOR” election of each of the director nominees listed in this Proxy Statement, for director, “FOR” approval of the compensation of our named executive officers, in favor of a non-binding advisory vote on executive compensation every “1 YEAR,” “FOR” the amendment to the Company’s Restated Certificate of Incorporation regarding the size of the Board of Directors, “FOR” the amendment to the Company’s Restated Certificate of Incorporation to reflect Delaware law provisions allowing officer exculpation, “FOR” the amendment to the Company’s Restated Certificate of Incorporation to select an exclusive forum for certain claims, “FOR” ratification of Ernst & Young LLP as our independent auditors for 2016,2023, and “AGAINST” the shareholderstockholder proposal regarding proxy access.an independent board chairperson.
What effect do broker non-votes have on the items of business?
Broker non-votes may occur because certain beneficial holders of our Common Stock hold their shares in “street name” through a broker or other nominee that is a member of the New York Stock Exchange. Under the rules of the New York Stock Exchange, we believe the only item of business to be acted upon at our Annual Meeting with respect to which such broker or nominee will be permitted to exercise voting discretion is item 7, the ratification of the appointment of Ernst & Young LLP to serve as our independent auditors for 2023. Therefore, if a beneficial holder of our Common Stock does not give the broker or nominee specific voting instructions on items 1, 2, 3, 4, 5, 6 or 8, such holder’s shares will not be voted on that item and a broker non-vote will occur. Broker non-votes will have no effect on the voting results for such items of business.
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How can I vote my shares at the Annual Meeting?
Voting by Proxy
Holders of our Common Stock may submit a proxy by:
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following the instructions on the Notice of Internet Availability of Proxy Materials to vote by telephone or the Internet; or
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completing, signing, dating and returning the proxy card or voting instruction form by mail.
​mail or verifiable electronic transmission.
Anthony J. Guzzi, Sheldon I. CammakerMaxine L. Mauricio and Mark A. Pompa (the “proxy holders”) have been designated by our Board of Directors to vote the shares represented by proxy at the Annual Meeting. Messrs.Mr. Guzzi, CammakerMs. Mauricio and Mr. Pompa are executive officers of the Company, and Mr. Guzzi is also a director nominee.
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The proxy holders will vote the shares represented by your valid and timely received proxy in accordance with your instructions.
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If you do not specify instructions on your signed proxy when you submit it, the proxy holders will vote the shares represented by the proxy in accordance with the recommendations of our Board of Directors on each item of business identified on page 2.
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If you do not specify instructions on your signed proxy when you submit it, the proxy holders will vote the shares represented by the proxy in accordance with the recommendations of our Board of Directors on each item of business identified on page 2.
If any other matter properly comes before the Annual Meeting, the proxy holders will vote the shares represented by proxy on that matter in their discretion.
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If your shares are held in a brokerage account in your broker’s name or in the name of a bank or other nominee (this is called “street name”), please follow the voting instructions provided by your bank, broker or other nominee. In most cases, you may submit voting instructions by telephone or by Internet to your bank, broker or other nominee, or you can sign, date and return a voting instruction form to your bank, broker or other nominee. If you provide specific voting instructions by telephone, by Internet or by mail, your bank, broker or other nominee must vote your shares as you have directed. If you wish to vote in person at the Annual Meeting, you must request a legal proxy from your bank, broker or other nominee and be prepared to present photo identification to be admitted to the Annual Meeting.
Voting other than by Proxy
While we encourage voting in advance by proxy, record holders of our Common Stock also have the option of voting their shares in person or by remote communication at the Annual Meeting.
How do I attend the Annual Meeting in person? What do I need to bring?
You are entitled to attend the Annual Meeting or any adjournment or postponement of the meeting only if you were a holder of our Common Stock as of the record date of April 7, 201611, 2023 or are the legal proxy holder or qualified representative of a stockholder.stockholder who held our Common Stock as of the record date. Please be prepared to present photo identification to be admitted to the Annual Meeting. If you are attending the Annual Meeting in person as a proxy or qualified representative of a stockholder, you will need to bring your legal proxy or authorization letter, in addition to photo identification.
We ask that any stockholder who attends the Annual Meeting follow recommended guidance, mandates and applicable executive orders from federal and state authorities regarding COVID-19. We will require all attendees to comply with our policies in place at the time of the meeting, which may include, but are not limited to, requiring proof of vaccination and a booster, a temperature check, and completing a health check questionnaire. Anyone with a fever or other symptoms of COVID-19 will be turned away at the door and will not be allowed to attend the Annual Meeting in person. If you are not feeling well, have had close contact with someone who has tested positive for COVID-19 or otherwise think you may have been exposed to COVID-19, you should not attend the Annual Meeting in person. Note that, for health and safety reasons, no food or drinks will be served at the Annual Meeting.
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Can I change my vote or revoke my proxy after I return my proxy card?
You may change your vote or revoke your proxy before the proxy is voted in person at the Annual Meeting by:
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sending written notice to Corporate Secretary, EMCOR Group, Inc., 301 Merritt Seven, 6th Floor, Norwalk, CT 06851;
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timely delivery of a valid later-dated proxy or a later-dated vote by telephone or on the Internet; or
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if you are a record holder, attending the Annual Meeting and voting in person.
​person and voting again.
If you hold your shares in street name, you may submit new voting instructions by contacting your broker or other holder of record.
What effect do abstentions and broker non-votesDo I have on the items of business?
An abstention on items 1 and 2 identified on page 2 will have no effect on the voting results for those items. An abstention on item 3any dissenters’ or item 4 identified on page 2 will have the effect of a vote against that item.
Broker non-votes may occur because certain beneficial holders of our Common Stock hold their shares in “street name” through a broker or other nominee which is a member of the New York Stock Exchange. Under the rules of the New York Stock Exchange, the only item of business to be acted upon at our Annual Meetingappraisal rights with respect to which such broker or nominee will be permitted to exercise voting discretion is item 3, the ratificationany of the appointment of Ernst & Young LLPmatters to serve as our independent auditors for 2016. Therefore, if a beneficial holder of our Common Stockbe voted upon at the Annual Meeting?
No. Delaware law does not giveprovide shareholders any dissenters’ or appraisal rights with respect to the broker or nominee specific voting instructions on items 1, 2, or 4, the holder’s shares will notmatters to be voted on that item and a broker non-vote will occur. Broker non-votes will have no effect onat the voting results for such items of business.Annual Meeting.
Who will count the votes?
We have retained Broadridge Financial Solutions, Inc. for the receipt, validation and tabulation of the votes at the Annual Meeting.
Where can I find the voting results of the Annual Meeting?
We will publish the results of the voting in a Current Report on Form 8-K within four business days of the Annual Meeting.
What is Householding?
Stockholders of record who have the same last name and address and who request paper copies of the proxy materials will receive only one copy unless one or more of them notifies us that they wish to receive individual copies. We agree to deliver promptly, upon written or oral request, a set of proxy materials, as requested, to any stockholder at the shared address to which a single copy of those documents was delivered. Stockholders will continue to receive separate proxy cards. If you prefer to receive separate copies of the proxy materials, or if you are receiving multiple copies and would like to receive only one copy for your household, contact Broadridge Financial Solutions, Inc. at 800-542-1061866-540-7095 or in writing to Broadridge Financial Solutions, Inc., Householding Department, 51 Mercedes Way, Edgewood, New York 11717.
COMPANY INFORMATION AND MAILING ADDRESS
We are a Delaware corporation. Our mailing address is EMCOR Group, Inc., 301 Merritt Seven, 6th Floor, Norwalk, CT, 06851, and our telephone number is (203) 849-7800. Our website address is www.emcorgroup.com. References in this proxy statementProxy Statement to “EMCOR,” “Company,” “we,” “us” and “our” refer to EMCOR Group, Inc. and our consolidated subsidiaries, unless the context requires otherwise. Information on our website is not intended to be incorporated into this Proxy Statement.
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CORPORATE GOVERNANCE
We have a long history of good corporate governance practices that has greatly aided our long-term success. Our Board of Directors, which we sometimes refer to as our “Board,” and our management have recognized for many years the need for sound corporate governance practices in fulfilling their respective duties and responsibilities to our stockholders. Our Board and management have taken numerous steps to enhance our policies and procedures to comply with the corporate governance listing standards of the New York Stock Exchange and the rules and regulations of the Securities and Exchange Commission.
Proxy Access. On December 14, 2016, following extensive deliberation, our Board adopted a proxy access by-law amendment. The Board adopted the amendment in response to the support at the Company’s 2016 Annual Meeting of Stockholders of a non-binding stockholder proposal advocating in favor of proxy access.
The amendment added to our By-Laws a “proxy access” provision that, consistent with the stockholder proposal, provides for inclusion in the Company’s proxy materials of director candidates if such candidates are nominated by stockholders owning at least 3% of our outstanding Common Stock continuously for at least three years. As provided in the stockholder proposal, the number of such director candidates may not exceed 25% of the number of directors then serving on the Board but shall not be less than two. While the stockholder proposal was silent as to an aggregation limit, the Board capped at 25 the number of stockholders who may aggregate holdings to reach the 3% threshold. In drafting the amendment, we conducted a comprehensive review of market practice among companies that had adopted proxy access provisions in their by-laws. We found that aggregation limits are extremely common and permitting 25 stockholders to aggregate exceeds the more typical 20 stockholder limit. After considering this and discussing the limit with our stockholders as described below, the Board determined that a limit is a sensible provision and viewed 25 as the right limit for the Company as it balances the administrative burden on the Company to review and verify the stockholders’ eligibility for proxy access while assuring that our stockholders have a fair and reasonable opportunity to nominate candidates by forming groups. In addition, our Board noted that, at such time, each of our top 6 stockholders held in excess of 3% of our outstanding Common Stock and each of our top 25 stockholders held in excess of 1% of our outstanding Common Stock. Similarly concentrated ownership of our Common Stock by our top stockholders remains true today. Nominations are subject to certain eligibility, procedural, and disclosure requirements, including the requirement that the Company receive notice no earlier than 150 calendar days, and no later than 120 calendar days, prior to the anniversary of the issuance of the prior year’s proxy materials.
Following our 2016 Annual Meeting of Stockholders, we communicated with 30 stockholders representing approximately seventy percent (70%) of our outstanding Common Stock to discuss proxy access, including provisions not contemplated by the stockholder proposal. Such stockholders were generally supportive of our proxy access provision. After extensive Board deliberation over several meetings, and considering the factors described above, including feedback from stockholders, the Board adopted the proxy access provision as described above.
On October 25, 2022, our Board adopted further amendments to our proxy access by-law (i) to clarify that the Company will not be required to include in its proxy materials any successor, substitute or replacement director nominee by a stockholder if the notice requirements set out in the proxy access by-law are not met and (ii) to clarify the extent to which Rule 14a-19 under the Exchange Act applies to shareholder nominations to our Board.
We continue to engage with our stockholders regarding proxy access and other corporate governance matters.
Corporate Governance Guidelines. Our Corporate Governance Guidelines provide the framework for our governance. The Nominating and Corporate Governance Committee of our Board, which we refer to as the “Corporate Governance Committee,” regularly reviews corporate governance developments and makes recommendations to our Board with respect to modifications to our Corporate Governance Guidelines.
We have recently amended our By-Laws and/orOur Corporate Governance Guidelines toand By-Laws address majority voting in uncontested director elections, Board leadership (including the respective roles and responsibilities of the Board Chairman and Lead Director), a mandatory retirement age and term limits for directors, and, for our directors and named executive officers, stock ownership guidelines and hedging and pledging prohibitions with respect tofor our securities,directors and named executive officers, and, with respect to our named executive officers, an incentive compensation recoupment policy, in each case as further described below:
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Majority Voting.
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Majority Voting.Under our By-Laws, a majority of the votes cast is required for the election of directors in an uncontested election (which is the case for the election of directors at the Annual Meeting). A majority of the votes cast means that the number of votes cast “for” a nominee must exceed the number of votes cast “for” a nominee must exceed the number of votes
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cast “against” or “withheld” from that nominee.nominee for such nominee to be elected. Each director nominee is required to deliver to the Company an irrevocable contingent resignation in advance of the distribution of the proxy materials for an annual meeting at which the director is expected to be nominated for election. If a director nominee does not receive a majority of the votes cast in an uncontested election, our Corporate Governance Committee is to recommend whether to accept or reject that director’s resignation and/or whether to take other action. The Board is, within 90 days of the certification of the election results and after consideration of the Corporate Governance Committee’s recommendation, to make a determination whether to accept the resignation and/or take such other action as the Board determines appropriate. The Corporate Governance Committee, in making its recommendation, and the Board, in making its determination, are to evaluate the best interests of the Company and its stockholders and may consider any factors or other information they deem relevant.
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Lead Director. The Chairman of the Board must be an independent director unless the Board otherwise concludes that the best interests of our stockholders would be otherwise better served. A Lead Director is appointed when the Chairman is not independent, and a Lead Director may be appointed in other instances if the Board so determines. Our Chairman of the Board, Mr. Stephen W. Bershad, is independent, and, accordingly, we do not have a Lead Director.
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Director Retirement Policy. Unless waived, a director may not be nominated for re-election as a director if he has or will have reached age 76 when he would otherwise stand for election.
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Stock Ownership Guidelines. In an effort to further align the interests of our non-employee directors and executive officers with our stockholders, stock ownership guidelines have been adopted for our directors and for our named executive officers requiring them to own and retain a significant financial stake in the Company’s Common Stock. Under the guidelines each non-employee director who served on October 22, 2012 (the “Effective Date”), the date of adoption of the stock ownership guidelines, is expected to own by October 22, 2017 a number of shares equivalent in market value, as of the Effective Date, to three times the directors’ annual cash retainer on that date, and our named executive officers who served on the Effective Date are expected to own by October 22, 2017 a number of shares equivalent in market value on the Effective Date based on their then respective annual base salaries, which number in the case of our chief executive officer is five times his annual base salary and in the case of our other named executive officers is three times such officer’s annual base salary. For purposes of determining compliance with the stock ownership guidelines, shares owned separately by the individual, owned
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Independent Lead Director. Our Corporate Governance Guidelines require that, if the Board determines that the best interests of stockholders are best served by electing a Chairperson that is not independent under the criteria of the listing standards of the New York Stock Exchange, an independent Lead Director be elected by majority vote of the independent directors. The Board evaluates the leadership structure of the Board, including whether to elect an independent Chairperson and/or appoint an independent Lead Director, on an annual basis. A Lead Director may also be appointed in other instances if the Board so determines, even if the Chairperson is also independent. Our current Chairman of the Board, Mr. Anthony J. Guzzi, is not an independent director and, accordingly, on June 1, 2018, the Board elected Mr. M. Kevin McEvoy, one of our independent directors, as Lead Director. The Lead Director presides at meetings at which the Chairperson is not present, including executive sessions; participates in the formation of, and approves, the agenda for each Board meeting, whether or not the Chairperson is present; calls meetings of the independent directors; serves as a liaison between the Chairperson and the independent directors; ensures that he or she is available for consultation and direct communication with stockholders and other key constituents; guides the annual performance review and succession planning for the Chief Executive Officer; partners with the Governance Committee to conduct the Board’s annual self-evaluation; and performs such other duties as the Board may from time to time delegate.
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Director Retirement Policy. A director may not be nominated for re-election if the director has or will have reached age 76 when he or she would otherwise stand for election. This policy may be waived by the Board.
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Director Term Limit Policy. A non-management director may not be nominated for re-election if the director has or will have served for 20 years or more when he or she would otherwise stand for election. This policy may be waived by the Board.
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Stock Ownership Guidelines. In an effort to further align the interests of our non-employee directors and named executive officers with our stockholders, our stock ownership guidelines require directors and our named executive officers to own and retain a significant financial stake in our Common Stock. Currently, all directors and executive officers are in compliance with such ownership requirements. Such guidelines set stock ownership targets expressed as the value of the shares of the Common Stock held by a director or named executive officer that is equivalent to three times the director annual cash retainer in effect as of October 22, 2012 (the “Effective Date”) for non-employee directors, five times the annual base salary rate as of the Effective Date for our Chief Executive Officer, and three times the annual base salary rate as of the Effective Date for each other named executive officer. A non-employee director who is first elected to the Board after the Effective Date is expected to own within five years of his/her election shares equivalent in market value to three times the director’s annual cash retainer in effect on the date of such director’s initial election to the Board. An individual who is first elected Chief Executive Officer of the Company or a named executive officer of the Company is expected to own, within five years of such officer’s initial election as such, shares equivalent in market value to five times or three times, respectively, of such officer’s annual base salary, in each case, as in effect on the date of such officer’s initial election to such position. Shares of Common Stock held by a director or named executive officer, as applicable, are valued based upon the greater of the value of a share of Common Stock on (a) the applicable measurement date, or (b) the date of the grant of such shares of Common Stock. Shares owned separately by the individual,
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7
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​
owned jointly with or separately with an immediate family member residing in the same household, held in trust for himsuch officer or director, or members of hissuch officer’s or director’s immediate family, members, and restricted stock and restricted stock units, are counted. A non-employee director who is first elected tocounted for purposes of determining compliance with the Board after the Effective Date is expected to own within five years of his/her election a number of shares equivalent in market value as of the date of his/her initial election to the Board to three times the director’s annual cash retainer in effect on the date of his initial election to the Board. An individual who is first elected Chief Executive Officer of the Company or an executive officer of the Company is expected to own, within five years of his/her initial election as such, a number of shares equivalent in market value as of the date of his/her election as such to five times or three times, respectively, his annual base salary in effect as of the date of his/her initial election as such.stock ownership guidelines.
•
No Hedging and No Pledging Policy. We prohibit our directors and named executive officers from participating in any hedging or monetization transactions involving Company securities. The policy also prohibits directors and named executive officers from holding any Company securities in a margin account and from pledging their Company securities as collateral for a loan.
•
Executive Compensation Recoupment Policy. Our Executive Compensation Recoupment Policy provides that if the Company is required to prepare an accounting restatement to correct an error that is material to its previously issued financial statements, then the Board can generally seek reimbursement from our named executive officers of incentive based compensation that was granted, earned or became vested based wholly or in part upon the attainment of a financial reporting measure during the three completed fiscal years immediately preceding the date of such accounting restatement to the extent that such incentive based compensation would have been lower had the financial reporting measure been based upon the restated financial results. We intend to adopt a new Executive Compensation Recoupment Policy to address the recovery of erroneously-awarded incentive compensation in compliance with the requirements of final SEC rules and applicable New York Stock Exchange listing standards, which will become effective in 2023.
•
Stockholder Right to Call Special Meetings. Our By-Laws require that the Board convene a special meeting at the request of stockholders owning at least 25% of our outstanding Common Stock. This stockholder right does not contain any material restrictions. This threshold carefully balances stockholder empowerment and protection. The Board believes that, given the stock ownership concentration of our outstanding Common Stock (two of our stockholders currently hold in excess of 10% of our outstanding Common Stock), 25% is the appropriate threshold.
•
No Hedging and No Pledging Policy. We prohibit our directors and executive officers from participating in any hedging or monetization transaction involving Company securities. The policy also prohibits directors and executive officers from holding any Company securities in a margin account and from pledging their Company securities as collateral for a loan.
​
•
Executive Compensation Recoupment Policy. In December 2015, our Board adopted an Executive Compensation Recoupment Policy which provides that if the Company is required to prepare an accounting restatement to correct an error that is material to its previously issued financial statements, then the Board is generally to seek reimbursement from our executive officers of incentive based compensation that was granted, earned or became vested based wholly or in part upon the attainment of a financial reporting measure during the three completed fiscal years immediately preceding the date of such accounting restatement to the extent that such incentive based compensation would have been lower had the financial reporting measure been based upon the restated financial results.
​
Independence of Directors. To assist our Board in determining the independence of each director, our Board has adopted categorical Standards for Determining Director Independence, a copy of which is attached to this Proxy Statement as Exhibit A and available aton our website at www.emcorgroup.com. To be considered independent, our Board must affirmatively determine that the director has no material relationship with us. Our Board has determined that nine of our ten current directors are independent, including all members of the Audit Committee of our Board, which we refer to as the “Audit Committee,” the Compensation and Personnel Committee of our Board, which we refer to as the “Compensation Committee,” and the Corporate Governance Committee, of our Board, and the Risk Oversight Committee of our Board, which we refer to as the “Risk Oversight Committee” (which was dissolved in December 2015), as the term “independent” is defined by the listing standards of the New York Stock Exchange and all applicable rules and regulations of the Securities and Exchange Commission, and in the case of the Compensation Committee, for purposes of Rule 162(m) of the Internal Revenue Code of 1986, as amended. Our nine independent directors are: John W. Altmeyer, Stephen W. Bershad, David A.B. Brown, Larry J. Bump, Richard F. Hamm, Jr.,Ronald L. Johnson, David H. Laidley, Jerry E. Ryan,Carol P. Lowe, M. Kevin McEvoy, William P. Reid, Steven B. Schwarzwaelder, Robin Walker-Lee and Michael T. Yonker. The other director isRebecca A. Weyenberg. Anthony J. Guzzi, our Chairman, President and Chief Executive Officer, who is not considered independent. The Board has also determined that M. Kevin McEvoy, who is a new nominee for election to the Board to succeed Mr. Bump who is not standing for re-election, would, if elected to our Board, be deemed independent under such standards.
Executive Sessions of the Board. At regularly scheduled meetings of the Board, our independent directors meet without any management representatives present.present and with Mr. McEvoy, our independent Lead Director, presiding as Chairman.
Board Leadership Structure. Our Chairman of the Board is Mr. Stephen W. Bershad,Anthony J. Guzzi. Mr. Guzzi was first elected to the Board on December 15, 2009 and was elected as the Chairman of the Board on June 13, 2013. He served as our Lead Director from May 31, 2012 to June 13, 2013 and has served as a director since December 15, 1994.1, 2018. He presides at meetings of the Board and at annual meetings of stockholders and sets the agenda for our Board meetings in collaboration with, and subject to the approval of, our Chief Executive Officer. As Chairman and an independent director, Mr. Bershad, together with our other independent directors and our strong committee system, maintain effective oversight of management.Lead Director.
Board Committee Charters. Our Board has adopted written charters for its Audit Committee, Compensation Committee, and Corporate Governance Committee. At least annually, each committee reviews its charter and recommends any proposed changes to the Board for approval. A copy of the charter of each committee charter is available on our website at www.emcorgroup.com.
Annual Board Assessments and Succession Planning. The Board conducts a self-assessment of its performance and effectiveness as well as that of its committees on an annual basis. For 2022, each director completed
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a written questionnaire which solicited open-ended and candid feedback on an anonymous basis. The collective ratings and comments were compiled, summarized and presented to the Board and its committees. During this evaluation process, the Board also conducts succession planning with respect to its own composition and that of its committees.
Management Succession Planning. Management conducts regular succession planning reviews with the Board of Directors. During these reviews, our Chief Executive Officer and the Board discuss succession plans for key positions and identify top talent for development in future leadership roles. The Board is actively engaged in this process and regularly evaluates our succession strategy and leadership pipeline for key roles. High potential leaders are given exposure and visibility to the Board when they are invited to lead Board presentations and attend informal Board events.
Standards of Conduct. Our Code of Business Conduct and Ethics applies to all of our directors, officers and employees and those of our subsidiaries. In addition, our Board has adopted a separate Code of Ethics for our Chief Executive Officer and Senior Financial Officers which imposes additional ethical obligations upon them.
Political Activities and Contributions. We do not use corporate funds for lobbying activities. Our Code of Business Conduct and Ethics prohibits direct or indirect contributions, loans, gifts or services to any political candidate, campaign, committee, political party or political action committee without the prior written approval of our General Counsel. The Code of Business Conduct and Ethics also prohibits political contributions by employees that are made on our behalf, reimbursed by the Company or charged to customers. Our General Counsel oversees compliance with these policies, in coordination with our Corporate Governance Committee.
Stockholder Communications. Stockholders and other interested persons may communicate with members of our Board as a group,whole, or with one or more members of our Board (including all independent directors) individually or as a group, by writing to them c/o EMCOR Group, Inc., 301 Merritt Seven, 6th Floor, Norwalk, Connecticut 06851, Attention: Corporate Secretary. Such communications will be forwarded to the individuals addressed. However, the Corporate Secretary will not forward communications to the Board that advocate illegal activity, are offensive or lewd, have no relevance to the business or operations of the Company, or constitute mass mailings, solicitations or advertisements. The Corporate Secretary will determine when a communication is not to be forwarded.
Policies and Procedures for Related Party Transactions. Under our written policy regarding transactions with related parties, which policy is contained in our Corporate Governance Guidelines, we generally require that any transaction involving $60,000$120,000 or more (a “Related Party Transaction”) be approved in advance by our Board or a committee of our Boardthe Corporate Governance Committee if we are, or one of our subsidiaries is, a participant in the transaction and if any of the following persons has a direct or indirect material interest in the transaction:
•
an executive officer;
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•
a director;
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•
director or director nominee;
a beneficial holder of 5% or more of our Common Stock, which we refer to as a “Significant Holder”;
​
•
Holder;”
an immediate family member of an executive officer, director, director nominee or Significant Holder; or
​
•
an entity which is directly or indirectly owned or controlled by one of the above persons or in which one of the above persons has a direct or indirect substantial ownership interest.
​
We refer to each of the foregoing as a “Related Party.”
TheA member of the Board who or whose immediate family member has an interest in thea Related Party Transaction may not participate in the BoardCorporate Governance Committee’s approval process. The Related Party must disclose any such proposed transaction, and all material facts relating to the transaction, to Ms. Walker-Lee, the ChairmanChairperson of our AuditCorporate Governance Committee, and our General Counsel, who is to communicate such information to our Board for its consideration. No such transaction is to be approved unless it is determinedif the Corporate Governance Committee determines that the transaction is in, or is not inconsistent with our best interests and the best interests of our stockholders.
However, if the transaction principally involves the provision of products and services by one of our subsidiaries in the ordinary course of its business to a Significant Holder, an immediate family member of a Significant Holder, or an entity owned or controlled by a Significant Holder or in which a Significant Holder or an immediate family member of a Significant Holder has a substantial ownership interest, the transaction does not need to be approved by the Board or a Board committee.
In order to ensure that material relationships and Related Party transactions have been identified, reviewed and disclosed in accordance with applicable policies and procedures, each director and executive officer also completes a questionnaire at the end of each fiscal year that requests confirmation that there are no material relationships or Related Party Transactions between such individual (or members of such individual’s immediate family) and the Company other than those previously disclosed to the Company. During
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Environmental Responsibility and Sustainability. We have adopted governance and oversight policies, and undertaken specific initiatives, to seek to ensure that our business is conducted in compliance with applicable environmental laws and regulatory requirements and in a manner that reflects our commitment to sustainability and environmental responsibility. We are also focused on structuring our governance and risk-management strategies to evaluate and address climate-related risks and opportunities.
Our Corporate Governance Committee directly oversees the development and implementation of these policies and initiatives and engages with management to evaluate our environmental and sustainability goals and metrics. In 2021, we established the EMCOR Group, Inc. Sustainability Task Force, a cross-functional leadership peer group established to explore, develop, and refine strategies and best practices to meet and track EMCOR’s sustainability goals, including targeted reduction of greenhouse gas (“GhG”) emissions both within our operations and for our customers. The mission of the Sustainability Task Force is to assist our Board in establishing these goals, including science-based GhG emissions reduction targets, to develop, share and report on the most effective ways to meet those goals, and collect data to track our progress towards meeting them. The Sustainability Task Force is comprised of a diverse team of leaders in our operations, procurement, safety, and compliance functions, including employees who assist our customers in reducing their own carbon emissions. Through a steering committee (the “Sustainability Steering Committee”), the Sustainability Task Force provides the Corporate Governance Committee and the Board with periodic reports on its work and progress. The Sustainability Steering Committee includes senior executives, including our Executive Vice President and Chief Financial Officer, Executive Vice President – Shared Services, Executive Vice President and General Counsel, Senior Vice President and Chief Accounting Officer, and Vice President for Safety, Quality, and Productivity.
The Company shares the broad concerns about the risks and impacts of global climate change. While the impact of warming average temperatures on our business is difficult to predict or measure, we believe that our business will be able to serve our customers as they seek to reduce energy consumption and create a safer and more comfortable environment at their facilities through the construction, installation, retrofit and maintenance of heating, air conditioning and fire protection systems. In addition, our work in the areas of alternative energy sources and energy infrastructure, as well as the work we do to construct electric vehicle (“EV”) charging stations, EV manufacturing plants and EV battery production facilities, will further provide opportunities for us in market sectors that can help transition towards a low-carbon economy.
The Corporate Governance Committee and Audit Committee, with support from our Sustainability Steering Committee and third-party advisors, has prioritized identifying and evaluating risks and opportunities facing our business due to climate change across the short (within one year), medium (one to five years) and long (beyond five years) term time horizons. This analysis includes physical risks, such as business interruption and impacts to our workforce and job sites, and transition risks, including shifts in market demand, changes to electric and clean energy equipment and infrastructure, and the impacts of emerging regulations. Certain of the risks the Company may face due to climate change are described within “Item 1A - Risk Factors – Climate Change Related Risk Factors” beginning on page 17 of our Form 10-K for the period January 1, 2015ended December 31, 2022.
For 2022, our named executive officers had personal objectives related to April 7, 2016 nonesustainability, including setting and achieving carbon emission reduction goals, as well as a focus on human capital, corporate culture and achieving our safety metrics. A description of those personal objectives, and their impact on named executive officer compensation, can be found under “Annual Incentive Program” beginning on page 26.
Our policies and initiatives in support of sustainability and environmental responsibility, and some of the ways in which we contribute to the efforts of our clients and local communities to further those goals, include the following:
•
Environmental Handbook. We provide our employees with clear guidelines to identify and comply with broadly-applicable environmental regulatory requirements, in the form of the Environmental Overview Handbook (the “Handbook”). The Handbook is a company-wide resource provided to all employees, offering practical guidance on key topics of environmental responsibility. We provide our employees with regular training sessions with respect to the Handbook.
•
Environmental and EHS Policies. The EMCOR Group, Inc. Environmental Policy and EMCOR Group, Inc. Environmental, Health and Safety Policy establish standards relating to the management of environmental impacts and environmental, health and safety for all our operations, applying to all EMCOR employees and business partners, including vendors and subcontractors.
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Third-Party Advisors and Accountability. We work closely with a leading global consulting firm to review compliance company-wide, conduct investigations and, when necessary, advise us on any testing or remediation appropriate to comply with applicable laws, our own internal policies and the requirements of our customers. In 2018, we also partnered with EcoVadis, an international sustainability platform, to evaluate our sustainability efforts on an annual basis. Our most recent evaluation earned us a “Bronze Recognition Level” score, in the top 50% of all evaluated companies.
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Assisting Customers Enhance Efficiency. We provide clients with expertise, technology and smart solutions to improve energy efficiency and provide greater control over energy use, sourcing and costs. This includes analyzing, designing and reviewing energy projects for customer facilities; lowering energy costs and reducing our customers’ carbon footprint through facility retrofitting and re-commissioning; Leadership in Energy and Environmental Design (LEED) certification and support; installation, maintenance and support for photovoltaic, fuel cell, solar, wind, biomass, landfill gas, tidal and biofuel energy generation and transport; waste-heat recovery energy generation and other waste-to-energy systems; energy efficiency program management and consulting, including operation of customer energy systems and energy producing equipment; energy audits; water system conservation and retrofits; and lighting, mechanical and electrical system retrofits. A recent example of the results of these efforts is the planned mechanical replacements and lighting retrofits performed by our subsidiary EMCOR Facilities Services, Inc. for a national bank at over 900 retail banking locations across the U.S. The customer is projected to reduce its GhG emissions by the equivalent of more than 20,000 metric tons of carbon dioxide. To put this in perspective, this amounts to emissions from burning 22,128,184 pounds of coal, emissions from the annual average electricity use of 3,891 homes, or the carbon sequestered by 23,669 acres of forest.
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Evolving with the Energy Sector. Our industrial services segment provides specialized service, construction and manufacturing expertise tailored for the complex needs of a range of energy industry clients, from oil and gas operations to cutting edge solar energy projects. Our services help to improve the energy efficiency of oil and gas refineries and petrochemical plants. As we anticipate that the need for these services may decline in the future, we have started to expand our expertise in this area to include the ability to construct and maintain carbon capture technologies and alternative energy resources. For example, our subsidiaries Ardent Services, LLC and Rabalais Constructors, LLC recently provided power distribution and DC “power gathering” services for the Corazon Ranch Solar Farm, a 200-megawatt solar farm in southern Texas. EMCOR’s range of energy infrastructure expertise played a key role in this 16,000 acre, 660,000 photovoltaic solar panel project, capable of powering up to 38,000 homes.
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Measuring and Reducing our Carbon Footprint. We have implemented a broad array of internal programs to measure and analyze our GhG emissions, in line with the Greenhouse Gas Protocol, and continue to look for ways to reduce our carbon footprint. In 2015, we launched a company-wide carbon footprint analysis to measure energy usage and emissions, which includes detailed breakdowns of energy usage by subsidiary operating company, comprehensive fuel consumption tracking, and energy vendor source type and carbon dioxide equivalency. To improve energy efficiency and reduce emissions, we are installing and maintaining more energy efficient electrical and environmental control systems at our facilities, as well as alternative energy solutions at certain facilities. Since our largest source of direct carbon emissions is our fleet of approximately 13,200 service vehicles, we are undertaking improvements to equipment and practices across the board to reduce fuel usage and increase efficiency through better use of our GPS routing and tracking systems, a change in the mix of our fleet by vehicle size and capacity, and the use of hybrid and electric vehicles. Current projects include working with most of the major vehicle manufacturers to pilot and test more fuel-efficient vehicles. Through this process, we have set a target of reducing our use of carbon-based fuels across our service fleet on a per capita basis by 30 to 40 percent by 2035, based on a 2021 baseline (following a determination that 2020 would not be a representative baseline due to the adverse impacts of the COVID-19 pandemic in that year).
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Setting and Achieving Emissions Targets. In recognition of the importance of reducing global net carbon emissions in the coming decades to prevent the worst consequences of climate change, we have planned to achieve a 20 percent reduction in our per capita Scope 1 and Scope 2 GhG emissions by 2035 (based on a 2021 baseline, and not on 2020, for the reasons discussed above). After engagement with our stockholders, we have retained a leading third-party consulting firm to assist us in evaluating the establishment of independently verified short, medium, and long-term science-based GhG emissions
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reduction targets, in line with the Science Based Targets initiative (the “SBTi”). In December of 2022, we submitted a formal commitment notice regarding setting such targets to the SBTi and are currently undertaking a comprehensive effort to establish those targets.
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Air Filtration and Sanitation. The COVID-19 pandemic has underscored the importance of indoor air quality (IAQ) systems to help protect the health and safety of occupants. Our IAQ services are helping clients address these concerns across a broad range of facilities and industries. Indoor air pollutants can negatively impact tenant satisfaction and cause serious health problems for occupants who have respiratory conditions, autoimmune disorders or environmental allergies. Airborne pathogens also build up in HVAC systems, leading to decreases in cooling capacity and reductions in energy efficiency. Our IAQ experts and professional technicians offer a full suite of services aimed at improving health and safety, ranging from routine maintenance and duct cleaning to the latest in ultra-violet (UV-C) technology and patented ionization products to kill and remove most pathogens. During the COVID-19 pandemic, our customers engaged us to help them increase air filtration and sanitization in their facilities as part of efforts to keep their employees, customers and tenants safe. We are proud that a number of our services and areas of expertise are important elements of various efforts to address and mitigate the risks and impacts of health emergencies such as the COVID-19 pandemic.
Additional information on our corporate responsibility initiatives and our services to improve energy efficiency and sustainability as well as health and safety can be found in our Sustainability Report, which is available on our website at www.emcorgroup.com.
Corporate Culture. Our Board oversees our general corporate culture and “tone at the top” established by management. By requiring regular compliance updates from management and supporting training programs at all levels, our Board works to ensure that the EMCOR Values of Mission First:Integrity, Discipline, and Transparency; People Always:Mutual Respect and Trust, Commitment to Safety, and Teamwork, are reflected in our actions every day.
Board Oversight of Human Capital Management. Our Board is committed to our EMCOR Values, especially those comprising People Always. Recognizing that our people are central to this vision, the Board engages in direct oversight of the Company’s human capital management across a broad range of areas, including employee safety, training and development, and succession planning. The Board requires regular updates on the Company’s safety and training programs and initiatives at all levels and regularly evaluates our success metrics. The Compensation Committee, in close consultation with the full Board and with management, also oversees the Company’s recruiting, retention, compensation and benefits, regularly evaluating our policies and practices to advance responsible and effective management of the Company’s key resource, its human capital.
We believe that our focus on employee safety and wellbeing is reflected in our results. During a year in which our people worked a total of approximately 77.5 million hours, the Company’s Total Recordable Incident Rate in 2022 was approximately 1.2, which was approximately 55% lower than the U.S. Bureau of Labor Statistics’ most recently available industry average of 2.70 for NAICS Code 2382, Building Equipment Contractors. This represents our fourteenth consecutive year with a Total Recordable Incident Rate which was less than half the industry average. Our position as an industry leader in safety begins with a strong culture of care and vigilance embodied in our EMCOR Values and is supported by a comprehensive suite of training, resources, and analytics. These include our signature Be There for Life! Zero Injuries Program and Be Vigilant! Campaign, incident and injury prevention planning, including in-person and online training tools and best practice guides available through our company intranet, enterprise level reporting and analysis of leading and lagging indicators, a 24-hour incident reporting hotline, and a company-wide program to share and champion best safety practices across our range of businesses. These tools are evolving with the way our people work, including employees in the field. For example, in 2021 we deployed an online safety training program available to any employee on a mobile device.
People Always also includes helping all our employees realize their full potential. This starts by always striving to provide a diverse and inclusive workplace and to provide all employees with an equal opportunity to succeed in a safe and respectful environment. We believe that a diverse workforce is important to the long-term success of our business. We actively seek to increase the diversity of our workforce and to practice our commitment to diversity and inclusion in hiring, development and training. This extends to our senior leadership and Board of Directors, where we require any search for new non-management director candidates or for recruited corporate officer positions to
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include candidates from underrepresented demographics. We have also designed and implemented policies and practices to promote a workplace free from discrimination, including our Affirmative Action and Equal Opportunity Policy. The implementation, effectiveness and reporting requirements of such policies are overseen by our designated Affirmative Action Officer.
All EMCOR employees are required to complete Diversity & Inclusion Training, and our current and future leaders undergo Implicit Association and Unconscious Bias training. To develop and reinforce our values company-wide and empower our leaders to perform at the highest levels, all senior leaders are invited to our Leadership for Results course at Babson College and our Leading with Character program at the Thayer Leadership Development Group at West Point. We also work to unlock the full potential of all employees at every level through the EMCOR Manager Certificate Program to promote supervisor management skills, tuition reimbursement for continuing education through our Degree Assistance Program, and the powerful resources of our online learning platform, the EMCOR Learning Center, providing thousands of on-demand training courses on a wide range of topics.
Through these programs and the Board’s engagement and oversight, we strive to remain an employer of choice for the most talented employees in each of the industries and markets in which we operate.
At December 31, 2022, we employed approximately 35,500 people, approximately 32,000 of whom were located within the United States and approximately 3,500 of whom were located in the United Kingdom.
Based on the most recent information available from our latest filing with the U.S. Equal Employment Opportunity Commission (the “EEOC”), our U.S. employees had the following gender demographics:
Male
​​
90%
Female
​​
10%
Additionally, based on the most recent information available from our latest EEOC filing, which is available on our website at www.emcorgroup.com/EMCOR_Group_Inc._2021_EEO-1_Report.pdf, our U.S. employees had the following race and ethnicity demographics:
Black / African American
​​
8%
Asian
​​
2%
Hispanic / Latinx
​​
18%
White
​​
69%
Multiracial, Native American, Native Hawaiian and Pacific Islander
​​
3%
Approximately 60% of our employees are represented by various unions pursuant to nearly 450 collective bargaining agreements between our individual subsidiaries or trade associations and local unions, as well as two collective bargaining agreements that are national in scope. We believe that our employee relations are generally good.
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DIVERSITY TABLE
The following table sets forth the gender, ethnicity and other diverse characteristics for our directors and nonenamed executive officers. For further information on the experience and skills of each director standing for re-election, please see the Skills, Qualifications and Experience table on page 21 and “Proposal No. 1 — Election of Directors” on page 57.
Name
​​
Title
​​
Board
Committees
​​
Gender
​​
Ethnicity
​​
Other Diverse
Characteristics
John W. Altmeyer
​​
Director
​​
Compensation Chairperson
​​
Male
​​
White
​​
Anthony J. Guzzi
​​
Chairman, President and CEO
​​
​​
Male
​​
White
​​
Veteran
​​
​​
​​
​​
​​
Ronald L. Johnson
​​
Director
​​
Governance
​​
Male
​​
Black and African American
​​
Veteran
​​
​​
​​
​​
​​
David H. Laidley
​​
Director
​​
Audit Chairperson
​​
Male
​​
White
​​
​​
​​
​​
​​
​​
Carol P. Lowe
​​
Director
​​
Audit
​​
Female
​​
White
​​
​​
​​
​​
​​
​​
M. Kevin McEvoy
​​
Lead Director
​​
Audit, Compensation and Governance
​​
Male
​​
White
​​
Veteran
William P. Reid
​​
Director
​​
​​
Male
​​
White
​​
​​
​​
​​
​​
​​
Steven B. Schwarzwaelder
​​
Director
​​
Compensation
​​
Male
​​
White
​​
​​
​​
​​
​​
​​
Robin Walker-Lee
​​
Director
​​
Governance Chairperson
​​
Female
​​
White
​​
​​
​​
​​
​​
​​
Rebecca A. Weyenberg
​​
Director
​​
​​
Female
​​
White
​​
​​
​​
​​
​​
​​
R. Kevin Matz
​​
EVP – Shared Services
​​
N/A
​​
Male
​​
White
​​
​​
​​
​​
​​
​
Maxine L. Mauricio
​​
EVP, General Counsel and Corporate Secretary
​​
N/A
​​
Female
​​
Native Hawaiian and Asian American
​​
​​
​​
​​
​​
​​
Mark A. Pompa
​​
EVP and CFO
​​
N/A
​​
Male
​​
White
​​
Group
​​
Gender Diverse
​​
Ethnically Diverse
​​
Veteran
Board of Directors
​​
30%
​​
10%
​​
30%
Named Executive Officers
​​
25%
​​
25%
​​
25%
Engaging with our Community
People Always also includes the responsibility to participate in the communities in which our people live and work, and we partner with local and national causes to support public health and social awareness, as well as our military service members and their families. These causes include:
The EMCOR Pink Hard Hat Program, supporting breast cancer awareness and highlighting our “Protect Yourself. Get Screened Today” initiative.
EMCOR’s Troop Support Program, supporting veteran employment, sending care packages to active duty servicemembers and providing education assistance to veterans and their families through the Johnny Mac Soldiers Fund.
Combating Human Trafficking by sponsoring Womankind’s Annual Anti-Trafficking Conference and supporting Womankind’s efforts to help survivors of domestic violence, human trafficking and sexual violence.
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Our Communities For A Cause program, which supports local charitable causes and community outreach programs of our executive officers engaged in a Related Party Transaction.subsidiaries. The Company donates to these local organizations, which include food banks, homeless housing projects, community clean-ups, and scholarships.
Availability of Corporate Governance Materials. Our categorical Standards for Determining Director Independence, Corporate Governance Guidelines, including the policies and procedures for Related Party Transactions, Code of Business Conduct and Ethics, Code of Ethics for our Chief Executive Officer and Senior Financial Officers, and other corporate governance materials may be obtained aton our website at www.emcorgroup.com or by writing to us at 301 Merritt Seven, 6th Floor, Norwalk, Connecticut 06851, Attention: Corporate Secretary.
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MEETINGS AND COMMITTEES OF THE BOARD OF DIRECTORS
During 2015,2022, our Board met 1211 times, and committees of our Board (including the Risk Oversight Committee which was dissolved in December 2015) held an aggregate of 1315 meetings. Each director attended at least 75% of the meetings of our Board and the meetings of the committees on which he or she served during 2015.2022. As provided in our Corporate Governance Guidelines, all directors are expected to attend annual meetings of our stockholders, and all of our directors standing for re-election who were directors at the time attended the 2015 annual meetingCompany’s 2022 Annual Meeting of stockholders.Stockholders either in person or virtually via the Internet.
Our Board has standing Audit, Compensation, and Corporate Governance Committees comprised solely of independent directors as defined in the listing standards of the New York Stock Exchange. In addition, until December 2015, the Board also had a standing Risk Oversight Committee comprised solely of independent directors under the foregoing standards. The members and the principal responsibilities of these committees are as follows:
Audit Committee. The Audit Committee is comprised of Messrs. Altmeyer, Bershad, Brown, HammMr. Laidley, Ms. Lowe, and Laidley.Mr. McEvoy. Mr. Laidley serves as Chairperson of the Audit Committee. Mr. Laidley is not standing for re-election due to the Director Retirement Policy described on page 7 under “Director Retirement Policy.” Among other things, it is responsible for:
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engaging (subject to ratification by stockholders), overseeing, and discharging our independent auditors;
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setting our independent auditors’ fees;
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reviewing the scope and audit procedures of our independent auditors;
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approving audit and permitted non-audit services;
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reviewing the senior audit engagement team members;
reviewing with management and our independent auditors our annual and quarterly financial statements;
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receiving periodic reports from our independent auditors and management regarding the auditors’ independence;
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meeting with our management and independent auditors on matters relating to, among other things, major issues regarding accounting principles and practices and financial statement presentation, and the adequacy of our internal controls over financial reporting;
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reviewing our internal auditing and accounting personnel;
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advising our Board with respect to our policies and procedures regarding compliance with applicable laws and regulations;
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discussing with our management and independent auditors the Company’s guidelines, policies, programs and practices with respect to risk assessment and risk management, including, without limitation, cybersecurity and climate related risks, the Company’s major risk exposures, and steps management takes to monitor and control such exposures; and
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•
confirming, together with the Compensation Committee, that our compensation practices and programs do not encourage excessive or unnecessary risk.risk; and
​overseeing of our share repurchase program.
The Audit Committee met five times during 2015.2022. Our Board has determined that each of the members of the Audit Committee, Messrs. Altmeyer, Bershad, Brown, HammMcEvoy and Laidley areand Ms. Lowe, is an “audit committee financial experts,”expert” within the meaning of the rules of the Securities and Exchange Commission. Following the dissolution
Board Risk Oversight. Our Board of the Risk Oversight Committee,Directors performs risk oversight primarily through the Audit Committee, assumedwhose principal responsibilities are set forth above. In addition, the Board has delegated to the Audit Committee responsibility for reviewing with management and our independent auditors guidelines and policies with respect to (i) risk assessment and risk management, (ii) our major risk exposures, and (iii) the steps management has taken to monitor and control such exposures. The Audit Committee receives periodic reports relating to risk assessment and risk management, including cybersecurity risks, from our senior management, including our Chief Executive Officer, Chief Financial Officer, General Counsel, Chief Information Security Officer, the head of our Internal Audit Department, our Vice President for Risk Management and our independent auditors. A cybersecurity update is provided to the Audit Committee at least quarterly. The Audit Committee also oversees climate-related risk management and reporting of financial and other data relating to climate impacts. The Company, through its primary responsibilities,Risk Department with oversight by the Audit Committee, also works with our insurance carriers to evaluate physical risks
16
to our facilities and operations that may result from or be exacerbated by climate change, to ensure that we maintain appropriate levels of insurance coverage to minimize the Charterpotential financial impact or business disruption that may occur as a result of such risks. A more detailed discussion of the material risks to our business, financial position and results of operations, including additional detail about cyber risk and climate change risk, can be found in “Item 1A - Risk Factors” beginning on page 8 of our Form 10-K for the period ended December 31, 2022.
Audit Committee members meet in executive session with representatives of our independent auditors and separately with the head of our Internal Audit Department. In addition, the Chairperson of the Audit Committee provides a report of each meeting of the Audit Committee to our Board to the extent that such Audit Committee meeting was amendednot attended by the other directors. However, all Board members are expected to reflect this change.attend the financial results discussion portion of all Audit Committee meetings. Our Board of Directors also provides risk oversight through its periodic reviews of the financial and operational performance of the Company.
Compensation Committee. The Compensation Committee is comprised of Messrs. Bump, Hamm, Laidley, RyanAltmeyer, McEvoy and Yonker. ItSchwarzwaelder. Mr. Altmeyer serves as the Chairperson of the Compensation Committee. Among other things, it is responsible for:
•
overseeing the evaluation of our management and reviewing and advising our Board regarding the qualifications of individuals identified as candidates for positions as our chief executive officer, chief operating officer, chief financial officer,Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, and general counselGeneral Counsel and for the position of chief executive officerChief Executive Officer of each subsidiary whose proposed annual base salary is $400,000$500,000 or more;
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reviewing and approving corporate goals and objectives relevant to compensation for our Chief Executive Officer, evaluating our Chief Executive Officer’s performance in light of those goals and objectives and, with input from our other independent directors, determining our Chief Executive Officer’s compensation based on this evaluation;
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reviewing and approving, based on proposals made by our Chief Executive Officer, compensation for our named executive officers as well as the compensation for each of our and our subsidiaries’ other officers and employees whose proposed annual base salary is $400,000$500,000 or more and for approving, with input from our other independent directors, any employment, severance or similar contracts for our and our subsidiaries’ officers and employees whose proposed annual base salary is $400,000$500,000 or more; and
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making recommendations to our Board with respect to incentive compensation plans for our officers and other employees and administering those plans and reviewing executive development plans.
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During 2015,2022, the Compensation Committee held four meetings.
Each year the Compensation Committee reviews the annual salaries of, and considers annual incentive awards for, our Chief Executive Officer and our other named executive officers, who are collectively referred to as our “named executive officers,” and each of whom is referred tocontained in the Summary Compensation Table for Fiscal Years 2015, 20142022, 2021 and 20132020 on page 24,34, which we refer to as the “Summary Compensation Table.” It also reviews the annual salary of each of our and our subsidiaries’ other officers and employees whose proposed annual base salary is $400,000$500,000 or more. Our Chief Executive Officer makes recommendations to the Compensation Committee for salary adjustments for those individuals and for the payment of annual incentive awards to all of our executive officers, who we refer to collectively as the “namednamed executive officers.” Annual incentive awards for our named executive officers are based upon both our performance in meeting pre-established financial objectives during our most recently completed year and an evaluation of the individual executive’s performance in meeting hishis/her pre-established personal goals and objectives for the most recently completed year. They are also based upon the recommendations of the Compensation Committee’s compensation consultant, Mercer. Our Chief Executive Officer participates in a portion of the meetings of our Compensation Committee and our entire Board during which these various compensation issues are discussed. The Compensation Committee considers our Chief Executive Officer’s recommendations regarding salary adjustments and payment of annual incentive awards, arrives at its own recommendations, and then, with input from the other independent members of the Board, makes its determination regarding salary adjustments and payment of annual incentive awards.awards, including the determination of whether to exercise discretion to adjust the payment of annual incentive awards upwards or downwards based upon the achievement, or failure to achieve, non-financial personal goals and objectives (as discussed in more detail on pages 26-27 below under “Annual Incentive Program”). The final deliberations and determinations regarding salary adjustments and payment of annual incentive awards are made at meetings without any members of management present.
Our Long Term Incentive Plan, which we refer to as the “LTIP,” provides the methodology for computing a number of stock units annually granted to executives participating in the LTIP, including our named executive officers. The LTIP also provides for the grant of cash awards which, as set forth in the LTIP, are based upon us achieving an earnings per share objective for a measurement period of three years. The earnings per share objectives for measurement periods are, in accordance with the LTIP, set by the Compensation Committee after receiving recommendations of our Chief Executive Officer. The LTIP was proposed by management, reviewed by the Compensation Committee’s consultant Mercer, which we refer to as “Mercer,” and, after review and modification by the Compensation Committee, approved by it and the other independent directors. The LTIP is further discussed commencing on page 18 under “Compensation Discussion and Analysis”—“Long Term Incentive Plan” and under “Long Term Incentive Plan and Special Equity Awards” commencing on page 25 which follows the Summary Compensation Table on page 24.
Annually, during the first quarter of each year, the Compensation Committee establishes that year’s objectives for our financial performance and the personal goals and objectives for each of the named executive officers, upon which the payment of that year’s annual incentive awards for the executive is to be based, and the targeted annual incentive awards for each such executive, the LTIP earnings per share objective for a three year period commencing with that year, and LTIP targeted awards for each such executive. Those objectives and targeted awards are recommended by our Chief Executive Officer, and are reviewed by and ultimately established by the Compensation Committee, with input from the other independent members of the Board.
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When incentive compensation plans for our named executive officers and other senior executives have been established, those plans have been proposed by management, reviewed by the Compensation Committee, and, at times, reviewed by Mercer. Mercer is a compensation consultant that the Compensation Committee has engaged annually since 2006 to advise the Compensation Committee with regard to the amount and form of compensation for our named executive officers and to review compensation plans for those officers. Mercer reviews the salaries and other compensation we pay to our named executive officers so that it may advise the Compensation Committee whether compensation paid to those executives is competitive with that paid to executives holding comparable positions at Mercer-selected companies, which are public companies engaged in providing specialty contracting, general construction, facilities, and industrial services, and/or manufacturing of electrical, HVAC and other construction products and which companies have other financial characteristics similar to ours, are organized similarly to the way we are, are focused principally on the United States market as we are, and with which we may compete for management talent. Such companies are listed on page 14.23. Mercer also reports upon its assessment of the appropriateness and fairness of our compensation plans when compared to compensation plans for comparable executives at those comparable companies. For 2015, we paid Mercer performed services, in 2022, totaling approximately $57,440$57,769 for its services to the Compensation Committee and $4,883 for our Corporate Governance Committee. Mercer is a wholly ownedwholly-owned subsidiary of Marsh & McLennan Companies, Inc. (“Marsh”). WeIn 2022, we also useused Mercer and other Marsh subsidiaries (“Other Marsh Subsidiaries”) for valuation and investment services, actuarial services, pension consulting, health and benefits consulting, and for insurance broking and risk consulting and paidconsulting. In 2022, those other services performed by Mercer and Other Marsh Subsidiaries an aggregate oftotaled approximately $985,000 for such services provided to us in 2015.$900,181. Mercer and Other Marsh Subsidiaries have been retained by management for such matters since 1987, and such retention is not subject to Board or Compensation Committee approval.
Role of Compensation Consultants. As noted above, the Compensation Committee has engaged Mercer for several years to assist in the evaluation of named executive officer compensation and compensation programs, and management has engaged Mercer and Other Marsh Subsidiaries to provide certain other services to us and to our subsidiaries.
The Compensation Committee has considered whether the non-executive compensation services provided by Mercer and Other Marsh Subsidiaries to the Company create any conflicts of interest in light of Rule 10C-1 of the Securities and Exchange Commission and the listing standards of the New York Stock Exchange. Because of the policies and procedures that Mercer has in place, as well as the policies and procedures that the Compensation Committee has in place, the Compensation Committee has concluded that to the extent the work performed by Mercer and Other Marsh Subsidiaries may create a possible appearance of a conflict of interest, there are sufficient safeguards and policies in place to mitigate or eliminate any such conflict, and therefore, no conflict of interest exists. Additionally, the Corporate Governance Committee has concluded, based on a similar analysis, that no conflict of interest exists.
The factors used by the Compensation Committee and the Corporate Governance Committee, as applicable, to determine that no conflict of interest exists include the following:
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the individual compensation consultant receives no incentive or other compensation based on the fees charged to the Company for other services provided by Mercer or Other Marsh Subsidiaries;
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the individual compensation consultant is not responsible for selling or providing other services of Mercer or Other Marsh Subsidiaries to the Company;
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Company, except with respect to executive and director compensation;
Mercer’s professional standards prohibit the individual compensation consultant from considering any other relationships Mercer or its affiliates may have with the Company in rendering his or her advice and recommendations;
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the individual compensation consultant has direct access to the Compensation Committee and the Corporate Governance Committee without management intervention;
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the individual compensation consultant does not own any stock of the Company;
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the individual compensation consultant does not provide any services to us other than those provided at the direction of the Compensation Committee;Committee with respect to executive compensation and the Corporate Governance Committee with respect to non-employee director compensation;
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18
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there is no business or personal relationship between any Compensation Committee or Corporate Governance Committee member or named executive officer of the Company and the individual compensation consultant or Mercer;
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the amount of fees received by Mercer for the services provided to the Compensation Committee isand Corporate Governance Committee in 2022 represent on a combined basis less than .01%.0060% of the total 2022 revenues of Mercer; and
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all non-executive and non-director compensation services are provided by personnel of Mercer and Other Marsh Subsidiaries who are not involved in providing services at the direction of the Compensation Committee.
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Committee or the Corporate Governance Committee.
Corporate Governance Committee. The Corporate Governance Committee is comprised of Ms. Walker-Lee and Messrs. Altmeyer, Brown, Bump,Johnson and Hamm,McEvoy. Ms. Walker-Lee serves as Chairperson of the Corporate Governance Committee. Among other things, it is charged with:
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responsible for:
leading the search for individuals qualified to become members of our Board, consistent with criteria approved by the Board and set forth in our Corporate Governance Guidelines;
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recommending to the Board nominees for election to the Board;
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developing and overseeing an annual self-evaluation process for the Board and its committees;
​overseeing our environmental, social and governance program;
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reviewing and determining whether to consent to Related Party Transactions; and
making recommendations with respect to:
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corporate governance guidelines;
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compensation and benefits for non-employee directors; and
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matters relating to Board members’ retirement and removal, the number, function and membership of Board committees, director and officer liability insurance, and indemnity agreements between us and our officers and directors.
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corporate governance guidelines;
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compensation and benefits for non-employee directors; and
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matters relating to Board members’ retirement and removal, the number, function and membership of Board committees, director and officer liability insurance, and indemnity agreements between us and our officers and directors.
During 2015,2022, the Corporate Governance Committee held threesix meetings.
The Corporate Governance Committee annually reviews compensation and other benefits for non-employee members of our Board. When the Corporate Governance Committee determines that a change in director compensation or benefits is appropriate, it submits such recommendation to the Board for its approval. Compensation arrangements for the Board are described commencing on page 4052 under “Director Compensation.”
Risk Oversight Committee. Prior to its dissolution in December 2015, the Risk Oversight Committee was comprised of Messrs. Altmeyer, Ryan and Yonker. Mr. Frank T. MacInnis was also a member of such committee prior to his retirement from the Board in October 2015. The Risk Oversight Committee was responsible for:
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discussing with management our risk assessment and risk management policies;
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reviewing and evaluating the process by which risk management is undertaken;
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reviewing and evaluating management’s identification of major risk exposures;
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reviewing and evaluating management’s program for risk management mitigation or remediation; and
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confirming, together with the Compensation Committee, that our compensation practices and programs do not encourage excessive or unnecessary risk.
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During 2015, the Risk Oversight Committee held one meeting. After its dissolution, the primary responsibilities of the Risk Oversight Committee were assumed by the Audit Committee.
Board Risk Oversight. Our Board of Directors performs risk oversight primarily through its Audit Committee whose principal responsibilities are set out above. Prior to is dissolution in December 2015, the Risk Oversight Committee shared such duties with the Audit Committee. In addition, the Board also delegated to our Audit Committee responsibility for reviewing with management and our independent auditors guidelines and policies with respect to (i) risk assessment and risk management, (ii) our major risk exposures, and (iii) the steps management has taken to monitor and control such exposures. The Audit Committee receives periodic reports from our senior management, including our chief executive officer, chief financial officer, general counsel, and the head of our Internal Audit Department, and our auditors relating to risk assessment and risk management. Audit Committee members meet separately in executive
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session with representatives of our auditors and the head of our Internal Audit Department. In addition, the Chairperson of the Audit Committee provides a report of each meeting of the Audit Committee to our Board. Our Board of Directors also provides risk oversight through its periodic reviews of the financial and operational performance of the Company.
RECOMMENDATIONS FOR DIRECTOR CANDIDATES
The Corporate Governance Committee will consider recommendations for candidates for Board membership suggested by Corporate Governance Committee members, other members of our Board, and stockholders. A stockholder who wishes the Corporate Governance Committee to consider his/his or her recommendations for nominees for the position of director should submit his/his or her recommendations in writing to the Corporate Governance Committee, c/o Corporate Secretary, EMCOR Group, Inc., 301 Merritt Seven, 6th Floor, Norwalk, Connecticut 06851, together with whateversupporting material required to be provided under our By-laws, as well as any additional supporting material the stockholder considers appropriate. TheSupporting material regarding director nominees should, at a minimum, should include such background and biographical material as will enable the Corporate Governance Committee to make an initial determination as to whether the prospective nominee satisfies the criteria for directors set out in our Corporate Governance Guidelines. The Corporate Governance Guidelines are available at our website at www.emcorgroup.com. A stockholder may also nominate director candidates by complying with our By-Law provisions discussed commencing on page 5273 under “Other Matters”Matters —“Stockholder Proposals.”
If the Corporate Governance Committee identifies a need to replace a current member of our Board, to fill a vacancy in our Board, or to expand the size of our Board, the process to be followed by the committee to identify and evaluate candidates includes:
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consideration of those individuals recommended by stockholders as candidates for Board membership and those individuals recommended in response to requests for recommendations made of Board members and others, including those individuals suggested by any third party search firm retained by the Corporate Governance Committee, from time to time;
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meeting, from time to time, to evaluate biographical information and background material relating to candidates; and
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interviews of selected candidates by members of the Corporate Governance Committee.
​Committee and other members of the Board.
The Corporate GovernmentGovernance Committee regularly reviews with the Board the requisite skills and characteristics that the Board seeks in Board members, as well as the composition of the Board as a whole. As provided in our Corporate Governance Guidelines, in its assessment of each potential candidate, the Corporate Governance Committee is to consider the candidate’s achievements in his or her personal career, experience, wisdom, integrity, ability to make independent analytical inquiries, and understanding of the business environment. The Corporate Governance Committee will also take into account the willingness of a candidate to devote adequate time to board duties and will consider whether a candidate is free of conflicting interests and whether the candidate will be able to adequately represent the best interests of our stockholders. The Corporate Governance Committee may also consider any other relevant factors that it may, from time to time, deem appropriate, including the current composition of our Board, diversity requirements, the balance of management and independent directors and the need for Audit Committee expertise, and the evaluation of all prospective nominees.expertise. Candidates have been selected for, among other things, their integrity, independence, diversity of experience, leadership, and ability to exercise sound judgment. Prior experience involving issues relevant to the Company’s businesses are among the most significant criteria. As noted in our Corporate Governance Guidelines, the Board believes that each director should have an understanding of our principalbusiness and financial objectives, results of operations and financial condition and our relative standing in relation to our competitors. Final approval of a candidate is determined by the full Board. Consistent with our Corporate Governance Guidelines, in selecting nominees to our Board of Directors, the Corporate Governance Committee considers the diversity of skills, background, and experience that a potential nominee possesses and the extent to which such diversity would enhance the perspective, background, knowledge, and experience of our Board of Directors as a whole. TheAs previously discussed, any search for new non-management candidates for a director position must include candidates from underrepresented demographics.
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Skills, Qualifications and Experience
As discussed above, the Corporate Governance Committee focuses on obtainingand the Board value a diversityrange of professional expertiseskills, qualifications, experience and other characteristics in our directors. The following table summarizes the experience and skills of each director standing for re-election. For further information on our Boarddirector candidates and their qualifications, please see “Proposal No. 1 — Election of Directors rather than a diversity of personal characteristics.Directors” on page 57.
Director
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Independent
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Finance/
Accounting
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Corporate
Governance
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Executive
Leadership
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Industry
Experience
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Public Company
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Cybersecurity
John W. Altmeyer
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•
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•
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•
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•
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Anthony J. Guzzi
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•
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•
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•
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•
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•
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Ronald L. Johnson
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•
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•
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•
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David H. Laidley
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•
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•
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•
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•
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•
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Carol P. Lowe
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•
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•
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•
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•
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•
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M. Kevin McEvoy
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•
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•
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•
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•
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•
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William P. Reid
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•
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•
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•
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•
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Steven B. Schwarzwaelder
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•
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•
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•
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•
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•
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Robin Walker-Lee
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•
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•
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•
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•
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•
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Rebecca A. Weyenberg
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•
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•
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•
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•
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•
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•
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COMPENSATION DISCUSSION AND ANALYSIS
Overview
TheBroadly stated, the objectives of our executive compensation program for our named executive officers, which officers are referred towhose names appear in the Summary Compensation Table on page 24,34, are to attract, retain and motivate key executives with skills necessary to assure our long-term success. Broadly stated, theThe purposes of the key components of the program are:
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to reward our named executive officers’ expertise and experience;
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to reward our named executive officers’ performance that drives achievement of our short-term and long-term goals by providing a strong link between pay and performance; and
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to align our named executive officers’ compensation with the interests of our stockholders.
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The executive compensation program uses various compensation elements that are geared to both our short-term and long-term performance. In designing our executive compensation program, we have applied the following principles:
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compensation should reinforce our business strategy and long-term stockholder value creation;
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a significant portion of named executive officer total compensation should be at risk and tied to the achievement of our financial objectives as well aswhile considering the achievement of the named executive officer’s annual individual goals and objectives. When we exceed our financial objectives for the relevant performance period, we reward our named executive officers with incentive awards greater than their respective targeted incentive awards based on financial performance. When our financial performance does not meet the established financial objectives, our named executive officers receive either no incentive awards based on this criteria or incentive awards that are less than their targeted incentive awards. The Compensation Committee sets the objectives for a particular performance period;
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incentive compensation should reflect both our short-term and long-term financial performance;
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incentives should align the interests of our stockholders and named executive officers by paying a meaningful portion of incentive awards in equity;
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incentive awards should serve as a recruitment and retention device so that named executive officers are motivated to join and stay with us; and
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incentive basedincentive-based compensation paid to a named executive officer should generally be subject to recoupment by the Company if the Company is required to prepare an accounting restatement of a financial statement toand, during the extentthree-year fiscal period preceding the restatement date, the incentive based compensation paid to the named executive officer is in excess of what would have been paid to him or her under the accounting restatement (the “Recoupment Policy,” which, as noted above, will be revised to address the recovery of erroneously-awarded incentive compensation in compliance with the requirements of final SEC rules and such excess incentive based compensation was granted or earned during the three fiscal year period preceding the date it is determined the restatement is required.
​applicable New York Stock Exchange listing standards).
The key components of our compensation program are:
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base salary and perquisites; the perquisites, which have been provided for more than 10 years, are principally dues reimbursement for a club where the named executive officer can entertain clients and other business contacts, term life insurance, an auto allowance and associated expenses, and a tax “gross up” on these perquisites;
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salary;
short-term incentives in the form of annual incentive awards;
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awards (the “Annual Incentive Program”) based upon our financial performance for the applicable year subject to two metrics: diluted earnings per share from continuing operations and the ratio of our positive operating cash flow to our operating income;
longer-term incentives under our Long Term Incentive Plan, which we refer to sometimes as the “LTIP” and which is discussed below and, at times, other equity grants. These incentives principally come in the form of:
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annual equity LTIP awards in the form of a numberrestricted stock units representing the right to receive an equal number of shares of our Common Stock, which generally cliff vest generally inafter three years; and
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performance-based cash incentive awards based on our financial performance measured by our diluted earnings per share from continuing operations during multi-year measurement periods; and
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certain retirement programs.programs, as described below; and
​perquisites, which have been provided for over 20 years, and principally include dues reimbursement for a club where the named executive officer can entertain clients and other business contacts, term life insurance, an auto allowance and associated expenses, and a tax “gross up” on these perquisites.
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We also maintain athe EMCOR Group, Inc. 401(k) Savings Plan, which we refer to as the “401(k) Plan.” The 401(k) Plan provides retirement benefits to the named executive officers. For 2015,2022, our annual contribution to the 401(k) Plan for each named executive officer was $13,515.$16,317.50.
In addition, effective with calendar year 2013, we adoptedmaintain a Voluntary Deferral Plan, a non-qualified deferred compensation plan offered to a select group of key employees, including our named executive officers. Elective deferrals of base salary or cash bonuses or other cash incentive compensation under the Voluntary Deferral Plan are credited to an unfunded bookkeeping account, which are also to be credited with Company matching credits and which may also be credited with Company supplemental credits.
Our 401(k) Savings Plan and Voluntary Deferral Plan are more fully described under “Retirement Plans, Severance Arrangements, and Change of Control Agreements” commencing on page 21.31.
InUnder severance agreements with our named executive officers, we provide special compensation to each in the event hishis/her employment is terminated (i) by us without cause or (ii) by the named executive officer for good reason. (We have set forth the definition of the terms “cause” and “good reason” under “Potential Post Employment Payments”Payments —“Severance Agreements” commencing on page 31)44).
The Compensation Committee has principal responsibility for setting the compensation for our named executive officers and other senior officers. To assistIt also reviews the incentive plans applicable to employees generally. The Compensation Committee annually it retains Mercer as a compensation consultant to review the compensation payable to our named executive officers. The assignments to Mercer are made by the ChairmanChairperson of the Compensation Committee. To assist the Compensation Committee in its compensation discussions and decisions, which includes salary levels, targeted annual incentive awards, LTIP targeted performance-based cash incentive awards for multi-year periods, financial measurements for incentive awards, and equity awards, as discussed below, Mercer presents compensation information compiled from proxy data and Forms 8-Kother publicly available data from companies in a comparator group of companies developed by Mercer with input from management.management and approved by the Compensation Committee. This information includes annual base salary, annual bonuses, long-term incentives, including stock option and equity awards, and targeted long-term incentive performance plan awards.
To assist the Compensation Committee in its compensation discussions and decisions for 2015,2022, Mercer utilized compensation information from a comparator group of companies that consisted of the following 1318 public companies engaged in providing specialty contracting, general construction, facilities, and industrial services, and/or manufacturing of electrical, HVAC and other construction products. Such companies have financial characteristics similar to ours, are organized similarly to the way we are, are focused, in large part, on United States markets as we are, and are companies with which we may compete for management talent. We refer to such companies as “Comparator Companies”.Companies.”
ABM Industries Incorporated

AECOM Technology
APi Group Corporation
Chicago Bridge & Iron Company N.V.

Comfort Systems USA, Inc.
Dycom Industries, Inc.

Flowserve Corporation
Fluor Corporation
Granite Construction Incorporated

Jacobs Engineering Group,Solutions Inc.

KBR, Inc.

Lennox International Inc.

MasTec, Inc.

Owens Corning
Quanta Services, Inc.
Regal Beloit Corporation
TetraTech,
Tetra Tech, Inc.

Trane Technologies PLC
Tutor Perini Corporation
EachUnited Rentals, Inc.
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With respect to each fiscal year, our Chief Executive Officer meets with the Compensation Committee reviewsduring the annualthird quarter of the immediately preceding fiscal year and the first quarter of such fiscal year to discuss salaries, of, and considerstargeted annual incentive awards for each named executive officer (other than himself) and objectives for both our Chief Executive Officerfinancial performance for such fiscal year and ourthe personal goals and objectives for each other named executive officers. Itofficer for such fiscal year, the two components upon which the payment of that year’s annual incentive awards are to be based. During the first quarter, the Compensation Committee also reviews the annual base salaries of our other officers and employees and those of our subsidiaries whose proposed annual
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base salary is $400,000$500,000 or more. Our Chief Executive Officer participates in portionsmore, and reviews the general objectives and goals of the Compensation Committee’s meetings to make recommendations to the Compensation Committee for salary adjustments and for the payment of annual incentive awards. Payments of annual incentive awards for 2015 for the named executive officers are set out in the Summary Compensation Table on page 24 and were based upon our performance in meeting pre-established financial objectives for the year and an evaluation of the individual named executive officer’s performance in meeting his pre-established personal goals and objectives for the year. The Compensation Committee considers our Chief Executive Officer’s recommendations regarding salary adjustments and payment of annual incentive awards, considers the compensation information provided by Mercer, arrives at its own recommendations, and then with input from our other independent directors, makes its final determination regarding salary adjustments and payment of annual incentive awards at a meeting without any members of management being present.
Our Chief Executive Officer meets with the Compensation Committee during the first calendar quarter of each year to discuss for that yearpolicies. Annual base salaries, targeted annual incentive awards for each named executive officer and objectives for our financial performance for the year and personal goals and objectives of each named executive officer for the year upon which the payment of that year’s annual incentive awards are to be based. Targeted annual incentive awards for each of our named executive officers for the year, our financial goals for that year, and the personal goals and objectives for each such executive for that year are recommended by our Chief Executive Officer (other than with respect to his own compensation) and are reviewed by and ultimately established by the Compensation Committee, together with input from our other independent directors and Mercer, at a meeting without any members of management being present. In the case of our Chief Executive Officer, the Compensation Committee, Lead Director and our Chief Executive Officer agree on his annual personal goals and objectives. The specific amounts of the annual base salaries, incentive awards and LTIP payments and grants to our named executive officers for 2022 are set forth in the Summary Compensation Table on page 34.
Incentive awards based upon our financial results are made under our Annual Incentive Program and our LTIP, subject to the performance terms and other applicable provisions of our Key Executive Incentive Bonus Plan and our 2010 Incentive Plan.
Because, as discussed below,herein, (a) our annual incentive awards to named executive officers are capped at no more than 250% of annual base salary, and(b) our equity awards provide for the award of restricted stock units vesting,that generally incliff vest after three years, and (c) the potential of a cash award depending on earnings atunder the end of the three yearLTIP is linked to our financial performance over a three-year period, our Board does not believe our named executive officers are encouraged to take excessive or unnecessary risk. In addition, our Board does not believe that our compensation policies and practices for employees generally are reasonably likely to have a material adverse effect on the Company.
Incentive awards based upon our financial results are made under our Annual Incentive Program and our Long Term Incentive Plan, subject to the performance terms and other applicable provisions of our Key Executive Incentive Bonus Plan and our 2010 Incentive Plan.
At our 2015 annual meeting2022 Annual Meeting of stockholdersStockholders, over 98%91% of the shares present at the meeting and voting “For” or “Against” were cast in favor of a resolution to approve, on an advisory basis, the compensation of our named executive officers as set out in our proxy statement for that meeting. Given this percentage of votes in favor of our named executive officer compensation, the Compensation Committee determined that our stockholders strongly support our current compensation policies and programs and decided to keep our compensation practices in place for 2015.2022.
Annual Base Salary
Annual base salary serves as a foundation of our compensation program. We determine the other key components of the program with reference to base salary, including annual and long-term incentives and termination payments.
We intend annual base salary and perquisites to reward the expertise, and experience and sustained performance of our named executive officers, each of whom has been with us for more than ten years. Base salaries are reviewed annually, and we have generally increased named executive officer salaries to reflect promotions or increased responsibilities and cost of living increases, when appropriate, and to remain competitive with base salaries paid by the Comparator Companies. For 2015,2022, the base salaries of our named executive officers, Messrs.Mr. Anthony J. Guzzi, our Chairman, President and Chief Executive Officer, Mr. Mark A. Pompa, our Executive Vice President and Chief Financial Officer, Sheldon I. Cammaker,and Ms. Maxine L. Mauricio, our then Executive Vice President, General Counsel, and Corporate Secretary were increased by approximately 2.1%, 2.0%, and current Vice Chairman, and8.7%, respectively. Mr. R. Kevin Matz, our Executive Vice President—President – Shared Services, were increased by approximately 4.0%, 3.2%, 1.0% and 3.0%, respectively.did not receive a salary increase in 2022.
Annual Incentive Program
Annual cash incentive awards under our Key Executive Incentive Bonus Plan form a significant element of annual compensation under our compensation program.the Annual Incentive Program. For more than the past fivefifteen years, named executive officer annual incentive awards
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have been based, in large part, on pre-established annual financial results emphasizing pay-for-performance. We expect annual incentive awards to motivate our named executive officers to improve performance on an annual basis. SuchWe believe such performance improvements should lead to sustained growth and ultimately to enhanced stockholder value.
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For 2015,2022, each named executive officer had a targeted annual incentive award based on 2015upon 2022 financial resultstargets (2022 diluted earnings per share from continuing operations and the ratio of our 2022 positive operating cash flow to our 2022 operating income) as well as a targeted annual incentive award based on hishis/her meeting certain pre-established personal goals and objectives. The maximum potential aggregate annual incentive awards payable for 20152022 to Mr. Guzzi and Mr. Pompa were 250% and 220%, respectively, of their respective 20152022 base salaries and to Messrs. CammakerMr. Matz and MatzMs. Mauricio were 200% of their respective 20152022 base salaries. We refer to a named executive’s maximum potential aggregate annual incentive awards sometimes as hishis/her “Maximum Potential Incentive Award.”
For Messrs. Guzzi and Pompa, their 20152022 targeted annual incentive awards, based upon our meeting certain financial measurements for 2015,2022, were 100%125% and 88%110%, respectively, of their respective annual base salaries, and for Messrs. CammakerMr. Matz and Matz,Ms. Mauricio, their 20152022 targeted annual incentive awards, based upon our meeting those 20152022 financial measurements, were 80%100% of their respective 20152022 annual base salaries. We refer to this targeted annual incentive award sometimes as the “Financial Target Bonus.” The exact amount of each named executive officer’s 20152022 annual incentive award that we would pay based on our financial performance ranged from 0% to the maximum percentage of his or her annual base salary indicated in the immediately preceding paragraph, depending on our 20152022 earnings per share and the ratio of our 20152022 positive operating cash flow to our 20152022 operating income. When we refer to earnings per share with respect to our Annual Incentive Program, we mean earnings per share on a diluted basis from continuing operations. However, in calculating such 20152022 earnings per share and operating income for purposes of determining annual incentive awards there was, as provided in the program, to be excluded from such calculations (a) non-cash charges directly associated with the write-down of balance sheet values of assets, (b) investment banking, consulting, legal, and accounting fees and related disbursements directly associated with any proposed or consummated (i) sale or disposition of Company assets or securities or (ii) acquisition or investment, (c) the effect of any changes in statutory tax rates from those in effect on March 27, 201516, 2022, (d) restructuring charges due to a sale or closure of a subsidiary’s business, inclusive of the U.K., (e) the cumulative effect of any change in accounting principles, and (f) certain charges relating to withdrawal liabilities in connection with multi-employer pension plans and specific surcharges assessed by anya multi-employer pension plan related to supplemental contributions (i.e., lump sum type contributions and not an increase in the hourly contribution rate) to ameliorate an underfunding in such plan.plan, (g) income or loss from discontinued operations and (h) costs and expenses related to COVID-19 diagnostic testing (as so adjusted, “adjusted earnings per share” and “adjusted operating income,” as applicable). For the purpose of calculating operating cash flow, amounts that are the subject of clauses (a) through (f)(h) above, any lump sum supplemental contributions to the U.K. defined benefit plans, and the amount of any deferrals in 2020 and any subsequent payments in 2022 of the employer’s share of Social Security taxes under the Coronavirus Aid, Relief, and Economic Security Act (“2020 Deferred Taxes”) were, as provided in the program, to be excluded from such calculation. calculation (as so adjusted, “adjusted positive operating cash flow”).
Mr. Guzzi, together with certain other named executive officers, developed proposed 20152022 financial measurements on whichmetrics (based upon 2022 diluted earnings per share from continuing operations and the ratio of our 2022 positive operating cash flow to baseour 2022 operating income) for the payment of the annual incentive awards based on financial measurements under our Key Executive Incentive Bonus Plan. Mr. Guzzi then proposed to the Compensation Committee the financial measurements. Our Compensation Committee considered the recommendations and established financial measurements for those annual incentive awards in March 2015,February 2022, taking into account the recommendations of management, the report of Mercer, our 20152022 budget, and annual earnings per share guidance for 20152022 that wewas to be provided to the equity markets. NoThe Compensation Committee determined that no annual incentive award based on theseupon the foregoing financial measurements was to be payable unless we achieved adjusted earnings per share for 2015 (adjusted to exclude certain charges as described above in this paragraph, which earnings per share we refer to herein as “adjusted earnings per share”)2022 in excess of $1.92$6.10 and 20152022 adjusted positive operating cash flow (adjusted to exclude certain charges as described above in this paragraph, which cash flow we refer to herein as “adjusted positive operating cash flow”) of at least 20% of 20152022 adjusted operating income (adjusted to exclude certain charges as described above in this paragraph, which operating income we refer to herein as “adjusted operating income”).income. Consequently, the financial measurements emphasizedemphasize earnings as well as positive operating cash flow—flow — a measure of quality of earnings—earnings — and weare linked it to guidance we providedprovide to the equity markets. In 2022, Mercer reviewed such financial measurements in order to assess whether they continued to meet our goals and objectives with respect to our Annual Incentive Program and to aid the Compensation Committee in determining whether the measurements should be changed. Mercer examined the measurements, the total incentive awards payable under the program and what was actually paid, as well as the performance of the Company and its Common Stock versus the Comparator Companies. Mercer concluded that the financial measurements continued to be appropriate means to incentivize and retain our executives.
The 20152022 incentive award based on financial measurements whichthat could have been awarded to a named executive officer, whether at, above, or below his 2015or her 2022 Financial Target Bonus, was determined in accordance with a matrix adopted by the Compensation Committee, which we refer to as the “Matrix” and which took into account 2015
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2022 adjusted earnings per share and the ratio of 20152022 adjusted positive operating cash flow to 20152022 adjusted operating income (the “2015“2022 Cash Flow Ratio”). For example, if our 20152022 adjusted earnings per share had been $2.70 (near the low end of our 2015 earnings per share guidance
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of $2.65 to $2.95 per share that was provided to the equity markets in February 2015),$7.15, then, in accordance with the Matrix, the named executive officer’s 20152022 Financial Target Bonus could have been awarded to him or her only if the 20152022 Cash Flow Ratio was at least 50%60%. If 20152022 adjusted earnings per share had been less than $2.70$7.15 (but greater than $1.92)$6.10), each named executive officer could have been awarded an annual incentive award based on financial measurements, in accordance with the Matrix, greater or less than his or her Financial Target Bonus, the amount of which would depend upon the 20152022 adjusted earnings per share and the 20152022 Cash Flow Ratio (provided the 20152022 Cash Flow Ratio was at least 20%). If 20152022 adjusted earnings per share had been greater than $2.70,$7.15, each named executive officer could have been awarded an annual incentive award based on financial measurements, in accordance with the Matrix, greater or lesserless than his or her Financial Target Bonus, the amount of which would depend upon the 20152022 adjusted earnings per share and upon the 20152022 Cash Flow Ratio. The exact amount of this incentive award was determined by the intersection on the Matrix of 20152022 adjusted earnings per share and the 20152022 Cash Flow Ratio. In no event could an incentive award based on financial measurements have exceeded the named executive officer’s Maximum Potential Incentive Award. However, if, as indicated above, 20152022 adjusted earnings per share had not been in excess of $1.92,$6.10, or if the 20152022 Cash Flow Ratio had been less than 20%, no annual incentive award based on financial measurements could have been paid to any named executive officer.
For 2015,2022, our adjusted earnings per share were $2.73,was $8.12 and our 20152022 Cash Flow Ratio was approximately 93%97% which, in accordance with the 2015 Matrix, permitted payment to each named executive officer the following approximate percentages of his 2015 annual base salary as an incentive award in respect of our 2015or her Maximum Potential Incentive Award based solely on financial performance: Mr. Guzzi, 126%; Mr. Pompa, 111%; and Messrs. Cammaker and Matz, each 101%. This was the actual annual incentive award made bymetrics. However, the Compensation Committee toalso determined that each named executive officer had achieved his or her personal goals and objectives for 2015 in respect2022 as described below.
A summary of our financial performance and was greater than his respective Financial Target Bonus.the Matrix containing key threshold levels is set forth below.
Adjusted Earnings per Share
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Threshold
$6.10
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Target
$7.15
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Maximum
$8.51
Cash Flow Ratio 100%
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0%
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120%
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330%(1)
Cash Flow Ratio 60%
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0%
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100%
​​
275%(1)
Cash Flow Ratio 20%
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0%
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40%
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110%
In addition,
(1)
While the Matrix contains these percentages, the Maximum Potential Incentive Award for the named executive officers would be as follows: Mr. Guzzi, 250%; Mr. Pompa, 220%; and for each of Mr. Matz and Ms. Mauricio, 200%.
As indicated above, under our Annual Incentive Program, during the first quarter of each calendar year, our Chief Executive Officer proposes for each of our other named executive officers such officer’s personal goals and objectives for the year, which are in addition to his or her normal duties and responsibilities. The Compensation Committee reviews those goals and objectives, which are subject to its approval. In the case of our Chief Executive Officer, the Compensation Committee, Lead Director and our Chief Executive Officer agree on his annual personal goals and objectives. Under the program we can payAnnual Incentive Program, if a named executive officer is not paid the Maximum Potential Incentive Award based solely on financial measures, then we may pay such named executive officer an annual incentive award based upon his or her personal goals and objectives; provided that in any case, such an award may not exceed 20% of the total award paid to such named executive officer. For 2022, the named executive officers received the Maximum Potential Incentive Award based solely on achieving his annualfinancial measures and, as a result, no additional awards based on their achievement of personal goals and objectives of up to two times a designated percentage of his annual base salary. In 2015, this designated percentage was for Mr. Guzzi, 25%, for Mr. Pompa, 22%, and for Messrs. Cammaker and Matz, 20% each.were made.
For 2015,2022, the Compensation Committee made annual incentive awards topersonal goals and objectives for the named executive officers basedwere:
Anthony J. Guzzi, Chairman, President and CEO
Continue to use our Values of Mission First, People Always to guide the Company with a focus on our People Always values of Mutual Respect, Teamwork and Safety as we continue to develop and build our value-based culture.
Implement our 5-year Strategic Plan.
Relaunch and redesign our EMCOR executive education program post-pandemic, again emphasizing our Mission First, People Always values. Also, renew our post-pandemic comprehensive training across EMCOR to reinforce our leadership culture.
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Continue to refine our IT roadmap and continue to improve our cybersecurity efforts.
Engage a consultant to help establish carbon reduction goals in line with the Science Based Targets initiative (SBTi).
Mark A. Pompa, Executive Vice President and CFO
Continue to use our Values of Mission First, People Always to guide the Company with a focus on our People Always values of Mutual Respect, Teamwork and Safety as we continue to develop and build our value-based culture.
Implement our 5-year Strategic Plan.
Engage a consultant to help establish carbon reduction goals in line with the Science Based Targets initiative (SBTi).
Leverage our Teams environment to execute financial and risk management training through the subsidiary level in order to build upon achievementyour successful in-person training.
Continue to build out our Risk Management capability and increase our captive capacity as appropriate.
R. Kevin Matz, Executive Vice President — Shared Services
Continue to use our Values of their respective personalMission First, People Always to guide the Company with a focus on our People Always values of Mutual Respect, Teamwork and Safety as we continue to develop and build our value-based culture.
Implement our 5-year Strategic Plan.
Relaunch and redesign our EMCOR executive education program post-pandemic, again emphasizing our People Always values. Also, renew our post-pandemic comprehensive training across EMCOR to reinforce our leadership culture.
Continue to refine our IT roadmap.
Engage a consultant to help establish carbon reduction goals in line with the Science Based Targets initiative (SBTi).
Build out our training platforms for both in-person and objectives. Messrs. Guzzivirtual training efforts.
Continue to develop our ACTS platform for not only safety but also environmental reporting and Pompa were awarded approximately 32%complete our Business Continuity Plan (BCP) platform.
Maxine L. Mauricio, Executive Vice President, General Counsel and 28%Corporate Secretary
Continue to use our Values of their respective 2015 base salaries,Mission First, People Always to guide the Company with a focus on our People Always values of Mutual Respect, Teamwork and Messrs. CammakerSafety as we continue to develop and Matz were each awarded approximately 25% of their respective 2015 base salaries, based upon achievement of their respective personalbuild our value-based culture.
Implement our 5-year Strategic Plan.
Continue to improve our cybersecurity efforts, capabilities, and contingency plans.
Engage a consultant to help establish carbon reduction goals in line with the Science Based Targets initiative (SBTi).
Continue to strengthen our cybersecurity posture through training across the organization.
Continue to use Teams and objectives.IT infrastructure to conduct targeted legal training especially on diversity and inclusion and employment law.
Each year’s incentive awards madepaid to the named executive officers on the basis of financial measurements and achievement of their respective personal goals and objectives follows our Chief Executive’sExecutive Officer’s report to the Compensation Committee of our annual financial results and how each named executive officer performed in meeting hishis/her personal goals and objectives. The Compensation Committee, with input from the other independent directors, then determines the amounts to be paid to each named executive officer as hishis/her annual incentive awards. This
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determination is based on where the Company’s financial results fall within the Matrix, as well as on the Compensation Committee’s evaluation of each name executive officer’s performance in meeting his or her personal goals and objectives. The final determination of the annual incentive awards are made without any members of management present.
Under the terms of the program, the Compensation Committee could have, in its sole discretion, for 2015,2022 (as for prior years), reduced the payment of any named executive officer’s annual incentive award based on financial measurements even though those financial measurements called for payment of the percentages provided for in the Matrix. In the exercise of its discretion the Compensation Committee could have taken into account whatever factors it deemed appropriate in exercising negative discretion. The Compensation Committee has the authority to take into account any factors it deems appropriate in its sole discretion, also could have awarded in respect of each named officer’s personal goals and objectives a percentage of his 2015 base salary ranging from zerochoosing whether or not to twice the percentage designated for him.exercise negative discretion. In December 2015,2022, the Compensation Committee waived its right to exercise negative discretion with respect to the named executive officers’ 20152022 annual incentive awards.
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The 2015 aggregate annual incentive award made to each named executive officer was less than his respective Maximum Potential Incentive Award and represented the following approximate percentage of his respective 2015 base salary: Mr. Guzzi, 158%; Mr. Pompa, 139%; and Messrs. Cammaker and Matz, each, 126%.
Long Term Incentive Plan
We provide a significant portion of our named executive officers’ compensation through our LTIP.Long Term Incentive Plan, which we refer to as the “LTIP.” The LTIP provides incentives whichthat foster executive recruitment and retention, reward long-term financial performance, and align management and stockholder interests. Before we adopted the LTIP, Mercer advised the Compensation Committee that the LTIP as proposed should accomplish these objectives with its focus on long-term financial performance, cash and equity awards competitive with those granted by Mercer’s list of Comparator Companies, and use of equity for alignment with stockholder returns. Each year, Mercer undertakes a comprehensive review of the LTIP, which includes an analysis of (a) the factors used to determine the performance portion of the award, (b) whether to increase or decrease the equity to cash ratio set forth in the plan and (c) the incentive plans of our Comparator Companies. In 2022, Mercer concluded that the LTIP continued to meet its original objectives and recommended that no changes be made to it.
The LTIP provides the methodology for computing a number of restricted stock units annually granted to executives participating in the LTIP, including our named executive officers. The LTIP also provides for the grant of cash awards which, as set forth in the LTIP, are based upon us achieving an earnings per share objective for a measurement period of three years. The earnings per share objectives for measurement periods are, in accordance with the LTIP, set by the Compensation Committee after receiving recommendations from our Chief Executive Officer. The LTIP was proposed by management, reviewed by the Compensation Committee’s consultant Mercer and, after review and modification by the Compensation Committee, approved by it and the other independent directors.
Annually, during the first quarter of each year, the Compensation Committee establishes the LTIP earnings per share objective for a three-year period commencing with that year, and LTIP targeted awards for each LTIP participant, including the named executive officers. Those targeted awards are recommended by our Chief Executive Officer and are reviewed, and ultimately established, by the Compensation Committee, with input from the other independent members of the Board.
Each participant in the LTIP, including each named executive officer, is entitled each year to an award based on a multiplier (or percentage), which we refer to as the “Multiplier,” of hishis/her annual base salary rate at the end of the previous year. We refer to this award as the “LTIP Target Bonus.”
Specifically, the LTIP Target Bonus consists of:
•
an annual award of a number of stock units to senior executives, including the named executive officers. This is the retention component. This number of stock units (in respect of which an equal number of shares of our Common Stock will be issued) generally vests on the third anniversary of the grant date of the stock units. The named executive officer is to receive a number of shares of our Common Stock equal in number to his annual grant of stock units approximately three years from the grant date as well as additional shares of our Common Stock equal to the cash dividends if any, that have been paid with respect to the Common Stock underlying the stock units awarded. The named executive officer will receive these shares, including the aforementioned dividend equivalent shares, only if he continues to be employed by us through the third anniversary of the grant date, unless his employment is terminated by us without cause, by him for good reason, or by reason of his death or disability or retirement at age 65 or older in which case he would receive those shares following the occurrence of that event. (We have set forth the definition of the terms “cause,” “good reason” and “disability” on page 34 in the Section entitled “Potential Post Employment Payments”—“Long Term Incentive Plan.”) Thus, a meaningful portion of the named executive officer’s total compensation is tied to our stock performance; and
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•
an award of a potential performance-based cash incentive award, which we refer to sometimes as the “LTIP Cash Target Bonus,” and which is the performance component. This component provides for the annual establishment of three year measurement periods. The award year and the two ensuing years make up each measurement period. Each named executive officer may receive a performance-based cash incentive award, depending upon how closely our actual aggregate earnings per share for the three year measurement period compare to a pre-established earnings per share objective for that measurement period. The Compensation Committee sets the earnings per share objectives. When we refer to “earnings per share” with respect to our LTIP, we mean earnings per share on a diluted basis. However, earnings per share with respect to three year measurement periods are to be computed without giving effect to (a) non-cash charges directly associated with the write-down of balance sheet values of assets, (b) investment banking, consulting, legal, and accounting fees and related disbursements directly associated with any proposed or consummated (i) acquisition or investment or (ii) sale or disposition of Company assets or securities, (c) the effect of any changes in statutory tax rates from those in effect on March 29, 2010, (d) restructuring charges due to a sale or closure of a subsidiary’s business, (e) the cumulative effect of any change in accounting principles, (f) with respect to three year measurement periods commencing on or after January 1, 2012, earnings per share are also to be computed without giving effect to charges relating to withdrawal liabilities in connection with multi-employer pension plans and lump sum type surcharges (as opposed to increases in hourly contribution rates) assessed by any multi-employer pension plan to ameliorate an underfunding in such plan, and (g) with respect to three year measurement periods commencing on or after January 1, 2015, earnings per share are also to be computed by excluding income or losses from
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•
an annual award of a number of restricted stock units to senior executives, including the named executive officers. This is the retention component. This number of restricted stock units (in respect of which an equal number of shares of our Common Stock will be issued) generally vests in full on the third anniversary of the grant date of the restricted stock units. The named executive officer is to receive upon vesting a number of shares of our Common Stock equal in number to his/her annual grant of restricted stock units as well as additional shares of our Common Stock equal to the cash dividends, if any, that have been paid with respect to the Common Stock underlying the restricted stock units awarded. The named executive officer will receive these shares, including the aforementioned dividend equivalent shares, only if he/she continues to be employed by us through the third anniversary of the grant date, unless his/her employment is terminated by us without cause, by him/her for good reason, or by reason of his/her death or permanent disability or retirement at age 65 or older, in which case he/she would receive those shares following the occurrence of that event. The terms “cause,” “good reason” and “permanent disability” are described in the Section entitled “Potential Post Employment Payments — Long Term Incentive Plan” commencing on page 46. Thus, a meaningful portion of the named executive officer’s total compensation is tied to our stock performance; and
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discontinued operations. The Compensation Committee may also within the first 90 days of the commencement of a three year measurement period adjust any such period’s earnings per share to omit the impact on such earnings per share of extraordinary items, gains or losses on the acquisition or disposal of a business, and/or unusual or infrequently occurring events and transactions, in each case to the extent permitted under Section 162(m) of the Internal Revenue Code of 1986, as amended. We use the three year measurement period to extend a named executive officer’s focus over multiple-year periods. This is intended to help achieve positive sustained long-term financial results and to align the named executive officer’s interests with longer-term stockholder interests. If we achieve 100% of the earnings per share objective that the Compensation Committee has established for a measurement period, the named executive officer will receive 100% of his LTIP Cash Target Bonus. If we achieve 50% of the earnings per share objective for a measurement period, the named executive officer will receive 50% of his LTIP Cash Target Bonus. If we fail to achieve our minimum objectives of at least 50% of the pre-established earnings per share objective for a measurement period, no performance-based cash incentive award is payable in respect of that measurement period. If we achieve 120% or more of the pre-established earnings per share objective for a measurement period, the named executive officer will receive 200% of his LTIP Cash Target Bonus. For earnings per share falling between 50% and 100% of the earnings per share objective for the measurement period or between 100% and 120% of the earnings per share objective, the percentage of his LTIP Cash Target Bonus is interpolated from 50% to 100% of his LTIP Cash Target Bonus and from 100% to 200% of his LTIP Cash Target Bonus, respectively. The named executive officer would not be entitled to any performance-based cash incentive award for any measurement period in which his employment is terminated by us for cause or in which he leaves our employment without good reason. However, if, during a measurement period, his employment is terminated by us without cause, by him for good reason or by reason of his death, disability or retirement at age 65 or older, he would, nevertheless, be entitled to a pro rata amount of the performance-based cash incentive award that he would have received had he been employed by the Company for that measurement period.
Under the terms of the LTIP, we established for each LTIP participant, including each named executive officer, a Multiplier (or percentage) of his annual base salary rate. The Multiplier for each named executive officer, which is set out in the LTIP (subject to change annually by the Compensation Committee for each named executive officer), for 2015, was as follows: Mr. Guzzi, 360%, Messrs. Pompa and Matz, each 150%, and Mr. Cammaker, 125%
•
an award of a potential performance-based cash incentive award, which we refer to sometimes as the “LTIP Cash Target Bonus,” and which is the performance component. This component provides for the annual establishment of three-year measurement periods. The award year and the two ensuing years make up each measurement period. Each named executive officer may receive a performance-based cash incentive award, depending upon our actual aggregate earnings per share results for the three-year measurement period compared against a pre-established earnings per share objective for that measurement period. The Compensation Committee sets the earnings per share objectives. When we refer to “earnings per share” with respect to our LTIP, we mean earnings per share on a diluted basis. However, earnings per share with respect to three-year measurement periods are to be computed without giving effect to (a) non-cash charges associated with the write-down of balance sheet values of assets, (b) investment banking, consulting, legal, and accounting fees and related disbursements directly associated with any proposed or consummated (i) acquisition or investment or (ii) sale or disposition of Company assets or securities, (c) the effect of any changes in statutory tax rates from those in effect on the date that the earnings per share objective is established, (d) restructuring charges due to a sale or closure of a subsidiary’s business, (e) the cumulative effect of any change in accounting principles, (f) charges associated with withdrawal liabilities relating to multi-employer pension plans and lump sum type surcharges (as opposed to increases in hourly contribution rates) assessed by multi-employer pension plans, to ameliorate an underfunding in their respective plans, (g) income or loss from discontinued operations, and (h) for three-year measurement periods commencing after January 1, 2022, costs and expenses related to COVID-19 diagnostic testing. The Compensation Committee may also, within the first 90 days of the commencement of a three-year measurement period, adjust any such period’s earnings per share to omit the impact on such earnings per share of extraordinary items, gains or losses on the acquisition or disposal of a business, and/or unusual or infrequently occurring events and transactions. We use the three-year measurement period to extend a named executive officer’s focus over multiple-year periods. This is intended to help achieve positive sustained long-term financial results and to align the named executive officer’s interests with longer-term stockholder interests. If we achieve 100% of the earnings per share objective that the Compensation Committee has established for a measurement period, the named executive officer will receive 100% of his/her LTIP Cash Target Bonus. If we achieve 50% of the earnings per share objective for a measurement period, the named executive officer will receive 50% of his/her LTIP Cash Target Bonus. If we fail to achieve at least 50% of the pre-established earnings per share objective for a measurement period, no performance-based cash incentive award is payable in respect of that measurement period. If we achieve 120% or more of the pre-established earnings per share objective for a measurement period, the named executive officer will receive 200% of his/her LTIP Cash Target Bonus. For earnings per share falling between 50% and 100% of the earnings per share objective for the measurement period or between 100% and 120% of the earnings per share objective, the percentage of his/her LTIP Cash Target Bonus is interpolated from 50% to 100% of his/her LTIP Cash Target Bonus and from 100% to 200% of his/her LTIP Cash Target Bonus, respectively. The named executive officer would not be entitled to any performance-based cash incentive award for any measurement period in which his/her employment is terminated by us for cause or in which he/she leaves our employment without good reason. However, if, during a measurement period, his/her employment is terminated by us without cause, by him/her for good reason or by reason of his/her death, permanent disability or retirement at age 65 or older, he/she would, nevertheless, be entitled to a pro rata amount of the performance-based cash incentive award that he/she would have received had he/she been employed by the Company for that measurement period. The terms “cause,” “good reason” and “permanent disability” are defined under “Potential Post Employment Payments — Long Term Incentive Plan” on page 47. Based upon compensation information provided by Mercer regarding awards to senior executives of Comparator Companies, the Compensation Committee concluded that the Multiplier for each named executive officer, when applied to a percentage of his annual base salary rate as of the end of the previous year, resulted in an LTIP Target Bonus for each named executive officer which was competitive with that provided by Comparator Companies.
In December 2015, the Board adopted the EMCOR Group, Inc. Executive Compensation Recoupment Policy (the “Recoupment Policy”) that provides, in the case of an accounting restatement to correct an error that is material to previously issued financial statements under the securities laws, the Board shall generally seek reimbursement for all cash or equity-based bonuses or other cash or equity-based incentive compensation that was granted, earned or became vested in whole or in part upon the attainment of any financial reporting measure during the three completed fiscal years immediately preceding the required financial restatement date to the extent such bonuses or other incentive compensation would have been less had such bonuses or other incentive compensation been calculated based on the restated financial results. The Compensation Committee adopted an amendment to the LTIP to implement the application of the Recoupment Policy to the LTIP.
The Compensation Committee believes this LTIP two-part retention and performance program provides a balance between market-based incentives and multi-year financial-based awards. Market-based incentives, such as equity awards, provide a strong link to stockholder value creation. Financial-based awards based upon multi-year periods provide a direct link to long-term corporate performance.
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In addition, the Board believes that because part of each LTIP award is granted in the form of restricted stock units that generally vestingcliff vest after three years from the grant date and the balance of each LTIP award is payable in cash based on the Company’s financial performance over a three yearthree-year period, which amount is capped based on a percentage of annual base salary rate, the LTIP does not encourage excessive or unnecessary risk taking by participants in the LTIP, including our named executive officers.
29
Under the terms of the LTIP, in 20132020 the Compensation Committee established a measurement period consisting of calendar years 2013, 20142020, 2021 and 20152022 pursuant to which performance-based cash incentive awards may be paid to LTIP participants, including our named executive officers. The actual amount paid in respect of each participant’s LTIP Cash Target Bonus for this measurement period 50%(50% of the product of hishis/her Multiplier and hishis/her annual base salary rate as of December 31, 2012,2019) was dependent upon how our Company’s earnings per share for that period measured up againstcompared to the earnings per share objective for the period, which was $6.45$18.00 per share. Because our aggregate earnings per share for the 2013–20152020 – 2022 measurement period was $7.32,$21.56, approximately 113%119.8% of the $6.45$18.00 earnings per share objective for that measurement period, in accordance with the LTIP, each named executive officer, as well as each other participant in the LTIP, was paid in March 2016, 165%2023, 195% of hishis/her LTIP Cash Target Bonus. The amount of the LTIP cash payment to each named executive officer is included under the “Non-Equity Incentive Plan Compensation” column for 20152022 of the Summary Compensation Table on page 24.34.
The Multiplier established by the Compensation Committee for each named executive officer for the 2022 award, to be paid in 2025, was as follows: Mr. Guzzi — 450%; Mr. Pompa — 235%; Mr. Matz — 200%; and Ms. Mauricio — 215%. Based upon compensation information provided by Mercer regarding awards to senior executives of the Comparator Companies, the Compensation Committee concluded that the Multiplier for each named executive officer, when applied to a percentage of his/her annual base salary rate as of the end of the previous year, resulted in an LTIP Target Bonus for each named executive officer which was competitive with that provided by the Comparator Companies.
On January 2, 2015,3, 2022, pursuant to the terms of the LTIP, each named executive officer, as well as each other participant in the LTIP, was awarded a number of restricted stock units entitling himhim/her to receive in February 20182025 an equal number of shares of our Common Stock provided hehe/she is continuously employed by us through January 2, 2018.3, 2025. However, if hishis/her employment is terminated by us without cause, by himhim/her for good reason, or by reason of hishis/her death, permanent disability or retirement at age 65 or older, hehe/she will, nevertheless, be entitled to those shares. The number of restricted stock units awarded to each named executive officer was determined by dividing 50% of the product of the named executive officer’s then Multiplier and hishis/her annual base salary rate as of December 31, 20142021 by the closing price of a share of our Common Stock on the New York Stock Exchange on January 2, 2015.3, 2022. The aggregate grant date fair value of the restricted stock units awarded in 20152022 to each named executive officer based on Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718 is included under the “Stock Awards” column for 20152022 of the Summary Compensation Table on page 2434 and under the “All Other Stock Awards: Grant Date Fair Value of Stock Awards” column of the Table entitled “Grants of Plan-Based Awards For Fiscal Year 2015”2022” on page 27.40.
In March 2015,February 2022, under the LTIP, the Compensation Committee also established for the measurement period consisting of the 2015–20172022 – 2024 calendar years an earnings per share objective of $7.60.$23.35. Each named executive officer’s LTIP Cash Target Bonus for that measurement period is 50% of the product of hishis/her annual base salary rate as of the end of 20142021 and hishis/her Multiplier. The amounts set out in the Table entitled “Grants of Plan-Based Awards for Fiscal Year 2015”2022” on page 2740 identified with footnote (4) indicates the range of LTIP performance-based cash incentive awards each named executive officer may receive in respect of the 2015–20172022 – 2024 measurement period if we achieve for that measurement period (i) the minimum earnings per share objective of $3.80,$11.68, (ii) the target earnings per share objective of $7.60,$23.35, or (iii) at least 120% of the target earnings per share objective, or $9.12.$28.02. As indicated earlier,above, if we do not achieve the minimum earnings per share objective for the 2015–20172022 – 2024 measurement period, we will not pay any of the LTIP performance-based cash incentive awards identified in the Grants of Plan-Based Awards infor Fiscal Year 20152022 Table.
The LTIP was amended in 2022 to provide that for three-year periods commencing after January 1, 2022, (i) changes to statutory tax rates are linked to the date the earnings per share objective for the respective three-year measurement period is established, rather than March 29, 2010, and (ii) COVID related diagnostic testing costs and expenses are excluded from the calculations.
Special Equity Awards
In October 2015, the Compensation Committee awarded toOn June 30, 2022, Mr. Guzzi 52,600 restricted stock units entitling him to receive an equal number ofPompa received 45,979 shares of our Common Stock provided he is employed by us until October 28, 2019. Ifupon the employmentvesting of Mr. Guzzi is terminated by us without cause, if he terminates his employment with us for good reason, if there is a change in controlan award of the Company, or if he dies or is disabled, then he or his estate shall be promptly issued those shares. In the event of a termination of his employment by us for cause or by him without good reason all his45,000 restricted stock units will be forfeited. The terms “cause,” “good reason,” “change of control,” and “disability” are substantiallygranted by the same as those terms are described commencing on page 34 under “Potential Post Employment Payments”—“Long Term Incentive Plan.”Compensation Committee in June 2017, together with additional restricted stock units that accrued during the period from 2017 - 2022 pursuant to dividend equivalent awards equal in value to our cash dividends paid during such period which would have been paid with respect to Common Stock underlying such June 2017 award. In granting this award to Mr. Pompa, the Compensation Committee took into
30
account compensation information provided by Mercer regarding equity awards to chief executive officers of the Comparator Companies.Companies and determined such awards were appropriate in order to bring his equity compensation in line with such executive officers. In addition, the Compensation Committee considered the important role played by Mr. Pompa and determined that the “cliff” vesting aspect of such equity grants is essential to the retention of named executive officers, including Mr. Pompa. The Compensation Committee has no plans to issue similar special equity awards in the near future.
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Percentage of Incentive Compensation
We believe our annual cash and LTIP incentive awards motivate our named executive officers to seek sustained positive financial performance. A significant portion of the named executive officers’ compensation is incentive compensation based on objective financial performance. The equity awards expose management to the risk that our stock value will go down and are conditioned on the named executive officer staying employed with us for a significant period of time.
For 2015,2022, the percentagespercentage of non-equity targeted incentive compensation to total targeted compensation (including restricted stock units) of the named executive officers ranged from approximately 36%47% to 49%51%, and the equity component percentage of each of the named executive officers’ total targeted compensation (including restricted stock units) ranged from approximately 18%24% to 50%32%. Of their 20152022 total targeted compensation (including restricted stock units), the percentagespercentage of each named executive officer’s total target compensation that werewas forfeitable ranged from approximately 35%47% to 71%65%.
Corporate Tax Deduction onDeductibility of Compensation in Excess of $1 Million a Year
Section 162(m)As a result of the U.S. Internal Revenue CodeTax Cuts and Jobs Act of 1986, as amended, which we refer2017 (the “Tax Reform Law”), compensation paid to ascertain of the “Code,” generally limits the deduction a public corporation may claim for certain executive compensation. The limitation ($1 million per executive for any year) applies only to compensation with respect to the corporation’s chief executive officer and its three most highly compensatednamed executive officers other than the chief executive officerin excess of $1 million will not generally be deductible unless it qualifies for transition relief applicable to certain arrangements and the chief financial officer. Compensation may qualify for an exemption from this deduction limit if it satisfies certain conditions under Section 162(m).awards in place as of November 2, 2017 that are not materially modified after such date. The Compensation Committee considers the impact of this rule, among other factors, in developing and implementing ourbelieves that its primary responsibility is to develop executive compensation plans. While we have designed much of our annual incentive awards andprograms that are consistent with the LTIP performance-based cash incentive awards to qualify for an exemption from the limitation on deductible compensation, not all the annual incentive awards and LTIP awards qualify under Section 162(m). To the extent a named executive officer’s annual incentive award is paid based on achievement of his personal goalsphilosophy and objectives (and a portion was so paid for 2015),described above. Therefore, the award would not, and did not, qualify under Section 162(m). Awards of stock units, which vest over the passage of time, do not qualify under Section 162(m). The Compensation Committee does not require that all compensation qualify under Section 162(m) because it believes that it is important to preserve flexibilityhas, and in granting awards that meet the objectives of ourfuture may, authorize compensation programs which may result (and for 2015 has resulted) in awards that doare not qualify for an exemption from the Section 162(m) deduction limitation.fully tax deductible.
Accounting Treatment
When designing the elements of compensation, the Compensation Committee considers the impact of accounting treatment and avoids structuring equity awards that would require that they be marked to market at the end of each accounting period as those types of awards could result in additional expense to the Company or additional net income to the Company dependent upon their periodic change in value. However, the Compensation Committee may in the future grant equity awards that may be subject to such accounting treatment.
Retirement Plans, Severance Arrangements, and Change of Control Agreements
Retirement Plans
Until 2013 we provided our retirement benefits solely through our 401(k) planPlan, pursuant to which we made a matching contribution of $13,515$16,317.50 for the account of each named executive officer for 2015.2022. We based the amount of our contribution for named executive officers on a formula set forth in the terms of the plan401(k) Plan that applies to all employees participatingparticipants in our 401(k)such plan.
Effective with calendar year 2013, we adopted our Voluntary Deferral Plan, a non-qualified deferred compensation plan offered to a select group of employees with annual salaries of at least $175,000, including our named executive officers. Under the Voluntary Deferral Plan an eligible employee may make elective deferrals and receive a Company base matching credit of up to four percent (4%) on deferrals, but not in excess of four percent (4%) of base salary in excess of an annual Internal Revenue Code limit ($265,000 for 2015), plus possible Company supplemental credits. The Voluntary Deferral Plan provides both a deferral opportunity and employer credits in excess of the deferrals and contributions available
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under our 401(k) Plan. Benefits under the Voluntary Deferral Plan are intended to be unfunded for tax purposes. Although the Company has created a trust to help it meet its obligations to pay Voluntary Deferral Plan benefits, assets of the trust are subject to the claims of the general creditors of the Company in the event of insolvency or bankruptcy. Participant accounts reflecting deferrals and Company matching credits under the Voluntary Deferral Plan are periodically adjusted to reflect the investment experience of certain funds in which the accounts are notionally invested and are fully vested at all times, and are distributable following separation from service or a change of control. See the Table under “Non-Qualified Deferred Compensation” on page 3043 and the accompanying narrative disclosure for information regarding deferrals and Company credits made in respect of 2015.2022.
Severance Arrangements
In light of our modest retirement benefits and the existence of employment agreements for several years with our named executive officers, other than Mr. Guzzi (who did not join us until October 2004) and Ms. Mauricio (who did not become a named executive officer until 2016), which employment agreements we decided not to renew when they expired on December 31, 2004, the Compensation Committee decided to enter into severance agreements with our then named executive officers in 2005. In 2016, the Company entered into a severance agreement with
31
Ms. Mauricio. The terms of the severance agreements reflected market practice and advice provided to the Compensation Committee by Mercer and outside counsel engaged by the Compensation Committee and generally took into account the named executive officer’s past accomplishments. Except with respect to Mr. Cammaker, eachEach such agreement provides that if the named executive is terminated without cause or if hehe/she terminates hishis/her employment for good reason, hehe/she will be entitled to a severance benefit equal to (a) two years of hishis/her annual base salary and (b) a prorated amount of his annual incentive awards. On June 9, 2015, we amended the Severance Agreement with Mr. Cammaker, effective January 2016, when he assumed the position of Vice Chairman, and ceased to be Executive Vice President and General Counsel, to provide that if Mr. Cammaker’s employment terminates for any reason, he is entitled to receive (a) the greater of $400,000 or 12 months of his then current base salary and (b) a prorated amount of hishis/her annual incentive awards.
The severance agreements and other enhanced severance benefits referred to in this Section as well as the terms “cause” and “good reason” are described commencing on page 3144 under “Potential Post Employment Payments”Payments —“Severance Agreements.”
In addition, if the named executive officerofficer’s employment is terminated without “cause,” hehe/she terminates hishis/her employment for “good reason” or hishis/her employment is terminated by reason of hishis/her permanent disability, as those terms are defined commencing on page 3447 under “Potential Post Employment Payments”Payments —“Long Term Incentive Plan,” or if the named executive officer dies or retires at age 65 or older, we will under the LTIP provide such named executive officer with:
•
all the shares issuable in respect of his or her LTIP restricted stock units no later than six months after the named executive officer’s termination date; and
​
•
with respect to each measurement period then in effect, a prorated amount of the LTIP performance-based cash incentive award that hehe/she would have received had he or she remained in our employ during the entire measurement period.
​
Change of Control Agreements
Each of our named executive officers is a party to a change of control agreement providing them with security so that, if we experience a change of control, we can provide security to them during the period of change of control in order that they can focus on our business makingand make decisions which are in our best interests and the best interests of our stockholders, even if such decisions lead to their departure and in order that we may retaindeparture. In addition, such agreements provide these individuals with an incentive to stay with the Company during that period and the transition to new ownership.
These change of control agreements provide for enhanced severance benefits if, within two years of the date we experience a change of control, the executive terminates hishis/her employment for good reason or the executive’s employment is terminated involuntarily, other than for cause, death or permanent disability. The enhanced severance benefits payable in the event of severance after a change of control are described under “Potential Post Employment Payments”Payments —“Change of Control Arrangements” commencing on page 37.49. If severance benefits are paid to a named executive officer under a change of control agreement, no payments are to be
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made to himhim/her under hishis/her severance agreement. The terms and provisions of the change of control agreements reflect competitive market practices and advice provided by Mercer and outside counsel to the Company and were not derived primarily from a negotiation process with our executives. The term “change of control” as used in the change of control agreements is defined commencing on page 37.49.
Excise Tax Gross-Ups
The severance payments and other payments and benefits our named executive officers would receive in connection with a change of control could trigger an excise tax, payable by our named executive officers. In that case, under the terms of the change of control agreements (other than the change of control agreement with Ms. Mauricio), we are to make gross-up payments to our named executive officers so that they receive the same economic benefit they would have received if the excise tax were not imposed. These gross-up payments would be provided even though we cannot deduct them from our own taxable income, because we believe our named executive officers should receive the full economic benefit of the protections we have offered them. Ms. Mauricio is not entitled to a gross-up payment under the terms of her change of control agreement executed in 2016.
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COMPENSATION COMMITTEE REPORT
The following Compensation Committee Report does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other Company filing under the Securities Act or the Exchange Act, except to the extent the Company specifically incorporates this report.
The following is the report of the Compensation and Personnel Committee for the year ended December 31, 2015.2022.
We have reviewed and discussed the Compensation Discussion and Analysis contained in this Proxy Statement with EMCOR’s management.
Based on the review and discussions referred to in the immediately preceding paragraph, we recommended to EMCOR’s Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement and be incorporated by reference into the Company’s Form 10-K for the year ended December 31, 2015.2022.
By:
​​
By:
​​
Compensation and Personnel Committee
​​
​​
Michael T. Yonker, Chairman
Larry J. Bump
Richard F. Hamm, Jr.
David H. Laidley
Jerry E. Ryan
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
​​
During 2015,
​​
John W. Altmeyer, Chairperson
​​
​​
M. Kevin McEvoy
​​
​​
Steven B. Schwarzwaelder
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
During 2022, the Compensation Committee was responsible for matters concerning executive compensation.
Messrs. Altmeyer, McEvoy and Schwarzwaelder served as members of the Compensation Committee during 2022.
No person who was a member of the Compensation Committee during 2022:
was at any time during 2022 an officer or employee of ours or any of our subsidiaries;
was formerly an officer of ours or of any of our subsidiaries; or
has or had any relationship requiring disclosure by us under any paragraph of Item 404 of Regulation S-K of the Securities and Exchange Commission.
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EXECUTIVE COMPENSATION AND RELATED INFORMATION
The following Table sets forth information with respect to the compensation of our Chief Executive Officer, our Chief Financial Officer, and our other executive officers during 2022, who we refer to collectively as the “named executive officers,” for each of fiscal years 2022, 2021 and 2020.
Summary Compensation Table for Fiscal Years 2022, 2021 and 2020
Name and Principal Position
​​
Year
​​
Salary
($)(1)
​​
Bonus
($)(2)
​​
Stock
Awards
($)(3)
​​
Option
Awards
($)
​​
Non-Equity
Incentive Plan
Compensation
($)(4)
​​
All Other
Compensation
($)(5)
​​
Total
($)
Anthony J. Guzzi
Chairman,
President and Chief Executive Officer
​​
2022
​​
$1,200,000
​​
—
​​
$2,643,739
​​
—
​​
$7,428,938
​​
$147,824
​​
$11,420,501
​
2021
​​
$1,175,000
​​
$44,062
​​
$2,320,597
​​
—
​​
$7,337,188
​​
$147,193
​​
$11,024,040
​
2020
​​
$1,101,563
​​
—
​​
$2,271,245
​​
—
​​
$7,282,500
​​
$152,848
​​
$10,808,156
Mark A. Pompa
Executive Vice
President and Chief
Financial Officer
​​
2022
​​
$765,000
​​
—
​​
$881,204
​​
—
​​
$3,262,500
​​
$133,743
​​
$5,042,447
​
2021
​​
$750,000
​​
$24,750
​​
$826,809
​​
—
​​
$3,208,800
​​
$117,843
​​
$4,928,202
​
2020
​​
$689,063
​​
—
​​
$809,935
​​
—
​​
$3,169,500
​​
$118,403
​​
$4,786,901
R. Kevin Matz
Executive Vice
President, Shared
Services
​​
2022
​​
$587,000
​​
—
​​
$586,875
​​
—
​​
$2,285,500
​​
$143,970
​​
$3,603,345
​
2021
​​
$587,000
​​
$17,610
​​
$581,934
​​
—
​​
$2,268,190
​​
$138,172
​​
$3,592,906
​
2020
​​
$545,625
​​
—
​​
$569,932
​​
—
​​
$2,254,000
​​
$138,898
​​
$3,508,455
Maxine L. Mauricio
Executive Vice
President, General
Counsel and
Corporate
Secretary
​​
2022
​​
$565,000
​​
—
​​
$558,983
​​
—
​​
$1,923,406
​​
$107,238
​​
$3,154,627
​
2021
​​
$520,000
​​
$15,600
​​
$484,930
​​
—
​​
$1,804,445
​​
$111,224
​​
$2,936,199
​
2020
​​
$454,688
​​
—
​​
$406,872
​​
—
​​
$1,625,500
​​
$111,090
​​
$2,598,150
(1)
For 2020, the annual base salaries of our named executive officers were as follows: Mr. Guzzi: $1,175,000; Mr. Pompa: $735,000; Mr. Matz: $582,000; and Ms. Mauricio: $485,000. In response to the COVID-19 pandemic, the annual salary of each named executive officer was reduced by 25% for the period from April 6, 2020 to July 3, 2020. The amount of such reduction, which is reflected in this column, for each named executive officer was as follows: Mr. Guzzi: $73,437; Mr. Pompa: $45,937; Mr. Matz: $36,375; and Ms. Mauricio: $30,312.
(2)
The amounts reported in this column for each year include the annual incentive awards earned in such year, but paid in cash in the subsequent year, based on achievement (as determined by the Compensation Committee was responsible for matters concerning executive compensation.
Messrs. Bump, Hamm, Laidley, Ryan and Yonker served as membersin its discretion) of the Compensation Committee during 2015.
No member ofnamed executive officer’s pre-established annual personal goals and objectives for such year. These amounts exclude those amounts earned in such year, but paid in cash in the Compensation Committee:
•
was at any time during 2015 an officer or employee of ours or any of our subsidiaries;
​
•
was formerly an officer of ours or of any of our subsidiaries; or
​
•
has or had any relationship requiring disclosure by us under any paragraph of Item 404 of Regulation S-K of the Securities and Exchange Commission.
​
​
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EXECUTIVE COMPENSATION AND RELATED INFORMATION
The following Table sets forth information with respect to the compensation of our Chief Executive Officer, our Chief Financial Officer, and our other executive officers during 2015, who we refer to collectively as the “named executive officers,”subsequent year, based on total compensation for fiscal 2015.
Summary Compensation Table for Fiscal Years 2015, 2014 and 2013
​
Name and Principal Position​​Year​​Salary
($)		​​Bonus
($)		​​
Stock
Awards
($)(1)
​​Option
Awards
($)		​​
Non-Equity
Incentive
Plan
Compensation
($)(2)
​​
All Other
Compensation
($)(3)
​​Total
($)		​
Anthony J. Guzzi
President and
Chief Executive Officer		​​​​2015​​​​$1,050,000​​​​​—​​​​$4,318,055​​​​​—​​​​$4,079,250​​​​$147,326​​​​$9,594,631​​
​​​2014​​​​$1,010,000​​​​​—​​​​$1,469,998​​​​​—​​​​$3,972,813​​​​$162,449​​​​$6,615,260​​
​​​2013​​​​$980,000​​​​​—​​​​$1,470,000​​​​​—​​​​$2,521,800​​​​$203,839​​​​$5,175,639​​
Mark A. Pompa
Executive Vice President
and Chief Financial Officer		​​​​2015​​​​$650,000​​​​​—​​​​$472,484​​​​​—​​​​$1,499,025​​​​$94,284​​​​$2,715,793​​
​​​2014​​​​$630,000​​​​​—​​​​$463,245​​​​​—​​​​$1,685,250​​​​$100,767​​​​$2,879,262​​
​​​2013​​​​$610,000​​​​​—​​​​$362,492​​​​​—​​​​$1,139,388​​​​$92,224​​​​$2,204,104​​
Sheldon I. Cammaker
Executive Vice President, General Counsel and Corporate Secretary (until January 4, 2016) (Currently Vice Chairman)		​​​​2015​​​​$525,000​​​​​—​​​​$324,972​​​​​—​​​​$1,187,438​​​​$136,565​​​​$2,173,975​​
​​​2014​​​​$520,000​​​​​—​​​​$321,862​​​​​—​​​​$1,332,719​​​​$148,640​​​​$2,323,221​​
​​​2013​​​​$515,000​​​​​—​​​​$318,717​​​​​—​​​​$948,420​​​​$153,820​​​​$1,935,957​​
R. Kevin Matz
Executive Vice President, Shared Services		​​​​2015​​​​$515,000​​​​​—​​​​$374,961​​​​​—​​​​$1,123,275​​​​$112,537​​​​$2,125,773​​
​​​2014​​​​$500,000​​​​​—​​​​$368,297​​​​​—​​​​$1,246,250​​​​$113,890​​​​$2,228,437​​
​​​2013​​​​$485,000​​​​​—​​​​$287,479​​​​​—​​​​$865,830​​​​$117,028​​​​$1,755,337​​
​
(1)
achievement of pre-established financial performance metrics.
(3)
Stock awards reflected in this Table represent for 2013, 2014,2020, 2021, and 20152022 the aggregate grant date fair value for restricted stock units computed in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 718.718, disregarding the effect of potential forfeitures. There can be no assurance that these amounts will be realized. These stock awards consist of, for 2013, 2014,2020, 2021, and 2015,2022, time-based restricted stock units granted under our Long Term Incentive Plan (“LTIP”), inLTIP. These amounts have been determined by multiplying the case Messrs. Pompa and Matz, 1,822 and 1,448 additional time-basednumber of restricted stock units awarded, respectively, to them in March 2014; and the case of Mr. Guzzi, 52,600 additional time-based stock units awarded to him in October 2015. The value of the respective stock awards are equivalent togranted by the closing price of a share of ourthe Common Stock on the New York Stock Exchange on the date of the award multiplied by the number of stock units included in the award.
​
(2)
grant.
(4)
The amounts reported in this column for 2015each year include the annual incentive awards earned in such year based on achievement of pre-established financial performance metrics but paid in 2016cash in respect of 2015, all of which were paid in cash.the subsequent year. These annual incentive awards earned in 2022 for each of the named executive officers are as follows: Mr. Guzzi, $1,653,750;$3,000,000; Mr. Pompa, $900,900; Mr. Cammaker, $661,500; and$1,683,000; Mr. Matz, $648,900.$1,174,000; and Ms. Mauricio, $1,130,000. The amounts reported in this column for 2015each year also include amounts paid in 2016the subsequent year under the LTIP in respect of LTIP Cash Target Bonuses for the 2013–2015 measurement period.period ending during such year. These LTIP amounts for each of the named executive officers arefor the 2020 – 2022 measurement period were as follows: Mr. Guzzi, $2,425,500;$4,428,938; Mr. Pompa, $598,125; Mr. Cammaker, $525,938; and$1,579,500; Mr. Matz, $474,375.
​
(3)
$1,111,500; and Ms. Mauricio, $793,406.
(5)
The amounts reported in this column for 2015 for each named executive officer include: (a) an automobile allowance, for his leasing of an automobile; reimbursement for auto insurance on such vehicle;vehicle, and reimbursement for the cost of maintenance and repair of such vehicle; (b) reimbursement for monthly dues in a club suitable for entertaining clients and other business contacts; and(c) the value of tickets to certain sporting events, as applicable; and (b)(d) premiums paid for $10 million of excess liability insurance of   $10 million.insurance. The amounts in this column also include the cost of premiums paid by us for term life insurance for each named executive officer, which such amounts for 2022 were as follows: Mr. Guzzi, $15,488;$14,110; Mr. Pompa, $3,937; Mr. Cammaker, $21,799; and$9,558; Mr. Matz, $12,702.$24,208; and Ms. Mauricio, $5,274. In addition, the amounts reported in this column include reimbursement for taxes on certain of the foregoing perquisites for each of the named executive officers, which such amounts for 2022 were as follows: Mr. Guzzi, $31,972;$38,751; Mr. Pompa, $24,093; Mr. Cammaker, $62,695; and$43,011; Mr. Matz, $35,781. For 2015, the$52,163; and Ms. Mauricio, $35,687. The amounts also include matching contributions of  $13,515 provided by us under our 401(k) Retirement Savings Plan for the account of each named executive officer which amount for 2022 was $16,317.50, and basic and supplemental matching credits provided by us under our Voluntary Deferral Plan for each named executive officer participating in such plan, which amounts for 2022 were as follows: Mr. Guzzi, $41,026;$47,883; Mr. Pompa, $20,253; Mr. Cammaker, $13,770; and$24,610; Mr. Matz, $13,240.$15,087; and Ms. Mauricio, $13,910. No amounts are included in this column for earnings on deferred compensation because the named executive officers diddo not receive above-market or preferential earnings on compensation that is deferred.
​
Proportion of 2015 Salaries to Total 2015
34
Proportion of 2022 Salaries to Total 2022 Compensation
The approximate percentage of each named executive officer’s 2022 salary of his or her total 2022 compensation reported, in each case as reflected within the Summary Compensation Table above, is as follows: Mr. Guzzi, 11%; Mr. Pompa, 15%; Mr. Matz, 16%; and Ms. Mauricio, 18%. There can be no assurance that the total compensation amounts reported in the Summary Compensation Table will be realized.
CEO Compensation Pay Ratio
In accordance with Item 402(u) of Regulation S-K (the “Pay Ratio Rule”), adopted by the Securities and Exchange Commission pursuant to Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, using methodologies and assumptions that we determined to be reasonable and appropriate to fulfill the requirements of the Pay Ratio Rule and the instructions and guidance promulgated by the Securities and Exchange Commission, we made the following determination with respect to the fiscal year beginning January 1, 2022:
(i)
The median of the annual total compensation of all of our employees, determined as described below and excluding Mr. Guzzi, our Chairman, President and Chief Executive Officer, was approximately $53,997;
(ii)
Mr. Guzzi’s annual total compensation for 2022, as shown in the Summary Compensation Table on page 34, was $11,420,501; and
(iii)
The ratio of Mr. Guzzi’s 2022 annual total compensation was approximately 211.5 times that of our median employee.
For 2022, we calculated our median employee compensation based on the same median employee as our calculations for 2020 and 2021. We believe there has been no significant change during 2022 to our employee population or employee compensation arrangements that would significantly affect the pay ratio disclosure. In 2020, we identified our median employee based upon the amount set forth as “Wages, tips and other compensation” on Form W-2 with respect to all employees who were employed by us or one of our consolidated subsidiaries on December 31, 2020. This determination excluded Mr. Guzzi and employees of subsidiaries acquired by us in 2020. In determining the median employee, we included the non-annualized base salaries of employees in our Industrial Services segment and union employees in our Mechanical and Electrical Construction segments. Because some of those employees only worked for us for a few months during 2020 and then departed after the completion of the turnaround or project, as applicable, for which they were hired, the median number is lower than it would be if we had been permitted to annualize the salaries of such employees or exclude them from the calculation. We calculated such median employee’s annual total compensation for 2022 as set forth above using the same methodology we used to calculate Mr. Guzzi’s annual total compensation in the Summary Compensation Table.
35
Pay versus Performance

In accordance with Item 402(v) of Regulation S-K (the “Pay Versus Performance Rule”), adopted by the Securities and Exchange Commission pursuant to Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the following table (the “Pay Versus Performance Table”), and the disclosures below, illustrate the relationships between executive compensation actually paid to our principal executive officer (“PEO”) and the average of the executive compensation actually paid to the named executive officers other than the PEO as a group, on one hand, and select financial metrics on the other hand, across our last three (3) completed fiscal years. Refer to the Compensation Discussion and Analysis commencing on page 22 for additional information regarding our pay-for-performance philosophy and how target and actual compensation aligns with our performance. The Compensation Committee did not consider the pay versus performance disclosure below in making its pay decisions for any of the fiscal years shown.

Compensation actually paid, as required under the Pay Versus Performance Rule, reflects the adjustments to unvested and vested equity awards during the years shown in the table below, and does not reflect the actual amounts of compensation earned or paid to our PEO and other named executive officers as a group for the applicable year. Compensation actually paid generally fluctuates due to increases or decreases in our stock price.
Pay Versus Performance
 
​​
Value of Initial Fixed $100
Investment Based On:
​​
 
Year
​​
Summary
Compensation
Table Total
for PEO(1)
​​
Compensation
Actually Paid
to PEO(1), (3)
​​
Average Summary
Compensation Table
Total for Non-PEO
Named Executive
Officers(2)
​​
Average
Compensation
Actually Paid to
Non-PEO
Named Executive
Officers(2), (3)
​​
Total
Share-holder
Return(4)
​​
Peer Group
Total
Share-holder
Return(5)
​​
Net Income(6)
​​Adjusted Earnings per Share
(7)
2022
​​
$11,420,501
​​
$12,993,704
​​
$3,933,473
​​
$3,977,758
​​
$174.03
​​
$137.67
​​
$406,122,000
​​
$8.12
2021
​​
$11,024,040
​​
$14,315,189
​​
$3,819,102
​​
$5,245,458
​​
$148.99
​​
$153.00
​​
$383,532,000
​​
$7.04
2020
​​
$10,808,156
​​
$11,315,009
​​
$3,631,169
​​
$3,846,234
​​
$106.47
​​
$119.84
​​
$132,943,000
​​
$6.40

(1)
For all years reported, the PEO was Anthony J. Guzzi, Chairman, President, and Chief Executive Officer.
(2)
For all years reported, the non-PEO named executive officer’s 2015 salaryofficers were: Mark A. Pompa, Executive Vice President and Chief Financial Officer; R. Kevin Matz, Executive Vice President — Shared Services; and Maxine L. Mauricio, Executive Vice President, General Counsel, and Corporate Secretary.
(3)
To calculate “compensation actually paid,” adjustments were made to the amounts of his total 2015 compensation reported in the Summary Compensation Table aboveon page 34. A reconciliation, showing the adjustments for the PEO as well as the non-PEO named executive officers as a group, is shown below on page 37.
(4)
Total Shareholder Return assumes the investment of $100 in our common stock on December 31, 2019 as follows: Mr. Guzzi, 11%; Mr. Pompa, 24%; Mr. Cammaker, 24%; and Mr. Matz, 24%. There can be no assurance thatwell as the reinvestment of all dividends.
(5)
For purposes of the “Peer group total compensation amountsshareholder return” column of this table, the S&P 400 Capital Goods Index was used as our selected peer group.
(6)
Reflects “Net Income” as reported in our audited financial statements included on Form 10-K for each of the Summary Compensation Table will be realized.years ended December 31, 2022, 2021, and 2020.
(7)
Adjusted earnings per share represents the Company-Selected Measure, which we believe represents the most important financial performance measure used to link compensation actually paid to our named executive officers to company performance. Adjusted earnings per share is more broadly defined commencing on page 25 under “Annual Incentive Program.”
36

The following tabular list sets forth the other financial measures which, in our assessment, represent the most important financial performance measures that we use to link compensation actually paid to our named executive officers, for the most recently completed fiscal year, to company performance:
Metric(1)
​​
Type of compensation to which metric applies
Adjusted earnings per share
​​
Annual Incentive Program
LTIP Cash Target Bonuses
Adjusted operating income
​​
Annual Incentive Program
Adjusted positive operating cash flow
​​
Annual Incentive Program

(1)
The metrics described in this table apply to the compensation of all named executive officers, including the PEO.

To calculate “compensation actually paid” in the Pay Versus Performance table on page 36, adjustments were made to the amounts of total compensation reported in the Summary Compensation Table on page 34. A reconciliation, showing the adjustments for the PEO as well as the non-PEO named executive officers as a group, is shown below.
Reconciliation of Compensation Actually Paid to PEO
​​
2022
​​
2021
​​
2020
Total compensation per Summary Compensation Table
​​
$11,420,501
​​
$11,024,040
​​
$10,808,156
Deduct amounts reported under “Stock Awards” in Summary Compensation Table
​​
$(2,643,739)
​​
$(2,320,597)
​​
$(2,271,245)
Add fair value of awards granted during the year that remain outstanding and unvested as of year-end
​​
$3,088,094
​​
$3,327,682
​​
$2,410,520
Change in fair value of awards granted in prior years that remain outstanding and unvested as of year-end
​​
$1,124,764
​​
$2,340,255
​​
$357,595
Change in fair value of awards granted in prior years that vested in the current year
​​
$4,084
​​
$(56,191)
​​
$9,983
Compensation Actually Paid
​​
$12,993,704
​​
$14,315,189
​​
$11,315,009
Reconciliation of Average Compensation Actually Paid to Non-PEO
Named Executive Officers as a Group
​​
2022
​​
2021
​​
2020
Average total compensation per Summary Compensation Table
​​
$3,933,473
​​
$3,819,102
​​
$3,631,169
Deduct amounts reported under “Stock Awards” in Summary Compensation Table
​​
$(675,687)
​​
$(631,224)
​​
$(595,580)
Add fair value of awards granted during the year that remain outstanding and unvested as of year-end
​​
$788,982
​​
$904,851
​​
$632,050
Change in fair value of awards granted in prior years that remain outstanding and unvested as of year-end
​​
$300,019
​​
$1,166,990
​​
$176,081
Change in fair value of awards granted in prior years that vested in the current year
​​
$(369,029)
​​
$(14,261)
​​
$2,514
Average Compensation Actually Paid
​​
$3,977,758
​​
$5,245,458
​​
$3,846,234
37

The following graphs summarize the relationships between (i) executive compensation actually paid and total shareholder return (“TSR”) (with a comparison of TSR between the Company and our peer group); (ii) executive compensation actually paid and the Company’s net income; and (iii) executive compensation actually paid and our adjusted earnings per share, which is our Company-Selected Measure as discussed above; in each case, across our last three (3) completed fiscal years.
-24-
graphic
​​
​graphic
graphic


(1)
Net income for the year ended December 31, 2020, included a $221.6 million non-cash impairment loss, net of tax, on goodwill, identifiable intangible assets, and other long-lived assets.
Annual Incentive Awards
Under our Annual Incentive Program, the Compensation Committee establishes annual corporate financial objectives for us and individual performance goals and objectives for each named executive officer. These objectives are the basis on which a determination is made whether the named executive officer should receive annual incentive awards and, if so, the amount of such award. The annual incentive awards for 20152022 and the basis on which they were made are discussed on pages 1522 through 1832 under “Compensation Discussion and Analysis.” For 2015,2022, the maximum annual incentive awardsMaximum Potential Incentive Awards for Messrs. Guzzi and Pompa were 250% and 220%, respectively, of their respective 20152022 annual base salaries and for Messrs. CammakerMr. Matz and MatzMs. Mauricio were 200% of their respective 20152022 annual base salaries. For 2015,salaries, as described under “Annual Incentive Program” beginning on page 24. These were the annual incentive award for eachamounts actually paid to the named executive officerofficers for 2022 based upon the achievement of financial objectives; thus, no amounts were paid to the named executive officers based on our 2015 financialindividual performance was equal to an approximate percentage of his annual base salary as follows: Mr. Guzzi, 126%; Mr. Pompa, 111%; Mr. Cammaker, 101%; and Mr. Matz, 101%. In addition, each such officer received, based on the accomplishment of his 2015 individual goals and objectives, the following percentages of his annual base salary: Mr. Guzzi, 32%; Mr. Pompa, 28%; Mr. Cammaker, 25%; and Mr. Matz, 25%.objectives. The estimatedpotential payouts under the 20152022 Annual Incentive Program are included under the “Estimated Future Payouts Under Non-Equity Incentive Plan Awards” column of the Grants of Plan-Based Awards infor Fiscal Year 20152022 Table on page 2740 and have footnote (3) next to them. The actual 20152022 incentive awards, all of which were paid in cash or deferred under our Voluntary Deferral Plan, are included in the “Non-Equity Incentive Plan Compensation” column of the Summary Compensation Table on page 24.34.
Long Term Incentive Plan and Special Equity Awards
Under the terms of the LTIP, for 2015,2022, we awarded each named executive officer a number of restricted stock units inon January 2015.3, 2022. These restricted stock units, which generally vest in full three years from their respective award dates, represent the right to receive an equal number of shares of Common Stock, generally on or about the fourth week in February 2018.2025.
38
A named executive officer has to be employed by us generally until January 2, 20183, 2025 to receive shares of our Common Stock in respect of his 2015his/her 2022 LTIP restricted stock unit award. If a named executive officer’s employment terminates before January 2, 2018, he3, 2025, he/she will, generally, forfeit his 2015his/her 2022 LTIP restricted stock unit award, unless such termination is by the Company without cause or by himhim/her for good reason or due to hishis/her permanent disability, death or retirement at age 65 or older. The terms “cause,” “good reason” and “disability”“permanent disability” are defined commencing on page 3447 under “Potential Post Employment Payments”Payments  —“Long Term Incentive Plan.”
As provided in the LTIP, in January of each year we base the number of restricted stock units that a named executive officer is to receive for that calendar year on one-half of a set percentage of hishis/her annual base salary rate as of the immediately preceding December 31, divided by the closing price of a share of our Common Stock as of the first business day of the year in which we award the restricted stock units. The currentIn 2022, the percentage for each named executive officer is provided for in the LTIP (subject to changeas established by the Compensation Committee) andCommittee was as follows in 2015:follows: Mr. Guzzi–360%Guzzi  —  450%; Messrs.Mr. Pompa  and Matz–150%—  235%; Mr. Matz  —  200%; and Mr. Cammaker–125%Ms. Mauricio  —  215%.
The 20152022 stock award values reflected in the “Stock Awards” column of the Summary Compensation Table on page 2434 relate to those restricted stock units awarded in January 20152022 under the LTIP to each named executive officer and in the case of Mr. Guzzi, 52,600 stock awards awarded to him in October 2015.officer. There can be no assurance that the amounts reported in the “Stock Awards” column of that Table for 20152022 will be realized. The stock awards reflected in the “All Other Stock Awards”Awards: Number of Shares of Stock or Units” column of the Grants of Plan-Based Awards in Fiscal Year 20152022 Table on page 2740 represent the number of restricted stock units awarded to each named executive officer in January 20152022 under the LTIP and the 52,600 stock units awarded to Mr. Guzzi in 2015.LTIP.
For Mr. Guzzi to receive shares of our Common Stock payable in respect to the award to him of 52,600 stock units in October 2015, he must be employed by us generally until October 28, 2019. Such stock units are subject to forfeiture under the same circumstances as described above with respect to the LTIP stock units awarded to him in January 2015. The terms “cause,” “good reason,” and “disability” are defined as they are in the LTIP and such definitions are set out on page 34 under “Potential Post Employment Payments”—“Long Term Incentive Plan.”
-25-
​
We also grant potential performance-based cash incentive awards under the LTIP based on our performance for a three calendarthree-calendar year measurement period commencing with the award year. In 2013,2020, we granted each named executive officer a potential performance-based cash incentive award, or LTIP Cash Target Bonus, based on our performance for a measurement period consisting of calendar years 2013– 2015.2020  —  2022. We reachedachieved approximately 113%119.8% of our targeted financial performance for that measurement period, and, accordingly, each named executive officer was paid an amount equal to 165%195% of his or her LTIP Cash Target Bonus for the measurement period. The amounts paid in respect of these performance-based cash incentive awards are included for 20152022 in the Summary Compensation Table under the “Non-Equity Incentive Plan Compensation” column on page 24.34.
In addition, in 2015,2022, we granted each named executive officer an LTIP Cash Target Bonus based upon the measurement period consisting of calendar years 2015–2017,2022 — 2024, which is reflected in the “Estimated Future Payouts Under Non-Equity Incentive Plan Awards” column of the Grants of Plan-Based Awards infor Fiscal Year 20152022 Table on page 27.40. We will base the payment of these awards (next to which the footnote (4) appears) on the achievement of the predetermined earnings per share objective for the measurement period consisting of calendar years 2015–2017.2022 — 2024. We will pay to each such named executive officer between 50% and 200% of the target performance-based cash incentive award set opposite hishis/her respective name in the Grants of Plan-Based Awards infor Fiscal Year 20152022 Table below ifon page 40 based upon whether we achieve aggregatea minimum, target or maximum earnings per share of   $7.60 for the 2015– 2017 measurement period. If, for this period, we achieve aggregate earnings per share of  $3.80, each such named executive officer will be entitled to the threshold performance-based cash incentive award amount set opposite his name in that Table, but if we do not achieve aggregate earnings per share of at least $3.80, no such cash incentive award will be payable. If, for this period, we achieve aggregate earnings per share of $9.12 or more, each such named executive officer will be entitled to the maximum performance-based cash incentive award amount set opposite his name in that Table. For aggregate earnings per share falling between $3.81 and $7.59, and between $7.61 and $9.11, for the 2015–20172022  —  2024 measurement period, as more particularly described commencing on page 28 under “Compensation Discussion and Analysis  —  Long Term Incentive Plan,” where the performance-based cash incentive awardterm “earnings per share” is interpolated from 50% to 99% of the target performance-based cash incentive award and from 101% to 199% of the target performance-based cash incentive award, respectively. Earnings per sharealso defined for purposes of the LTIP is defined commencing on page 18 under “Compensation Discussion and Analysis”—“Long Term Incentive Plan.”
If a named executive officer is not employed during an entire measurement period, he will not be entitled to any performance-based cash incentive award for the measurement period, unless he has been terminated without cause, he terminates his employment for good reason, dies, is disabled or retires at age 65 or older. If during a measurement period he is terminated without cause or he terminates his employment for good reason, dies, is disabled or retires at age 65 or older, then for the measurement period, he will be entitled to a portion of the awards under the LTIP as described under “Potential Post Employment Payments”—“Long Term Incentive Plan” commencing on page 33, where the terms “cause,” “good reason” and “disability” are also defined.LTIP.
Voluntary Deferral Plan
Each of our named executive officers deferred amounts under the Voluntary Deferral Plan for 20152022 and received Company base matching credits plus a Company supplemental credit equal to 22%33.75% of the base matching credit. All Company matching and supplemental credits are included for 20152022 in the Summary Compensation Table under the “All Other Compensation” column on page 24.34. See “Non-Qualified Deferred Compensation” on page 3043 for additional information about the Voluntary Deferral Plan.
-26-
​39
The following Table sets forth certain information with respect to the grant of plan-based awards during the 20152022 fiscal year to the named executive officers. There were no awards of options to the named executive officers during 2015.2022.
Grants of Plan-Based Awards For Fiscal Year 2015
​
2022
​
Name
​​​
Grant Date
​​​
Estimated Future
Payouts Under Non-Equity
Incentive Plan Awards
​​Estimated Future
Payouts Under Non-Equity
Incentive Plan Awards
All Other
Stock Awards:
Number of
Shares of
Stock or Units
(#)
​​
All Other

Stock Awards:
Number
Grant Date
Fair Value of
Shares of

Stock or
Units
Awards
(#)
​
Threshold
($)
​​All Other
Stock Awards:
Grant Date
Fair Value
of Stock
Awards
Target
($)
​
Name​​Grant Date
Maximum
($)
​
Anthony J. Guzzi
​​Threshold
($)
1/03/22
​​Target
($)
​​Maximum
($)		​
Anthony J. Guzzi
​​​​1/2/15
​​​
20,758(1)
​​
$2,643,739(2)
​
2/22/22
​​​
$—(3)
​​​
$1,500,000(3)
​​​
$3,000,000(3)
​​​
​​
​
2/22/22
​​41,459(1)
$1,321,875(4)
​​​​
$
1,817,977(2)​​
​2,643,750(4)​​3/2/15
$5,287,500(4)
​​​​$273,000(3)
​​​
​$1,312,500(3)
Mark A. Pompa
​​​​$2,625,000(3)
1/03/22
​​​
​​52,600(5)
​​​​$2,500,078(6)​​
​
​​3/2/15
6,919(1)
​​​
$881,204(2)
​$909,000(4)
2/22/22
​​​​
$
1,818,000(4)—(3)​​​​
$
3,636,000(4)841,500(3)​​​​
Mark A. Pompa
$1,683,000(3)
​​​​1/2/15
​​
​
2/22/22
​​​
$440,625(4)
​​​
$881,250(4)
​​​
$1,762,500(4)
​​​
​​​
R. Kevin Matz
​​​
1/03/22
​​10,755(1)
​​​​$472,484(2)​​
​
​​3/2/15
​​​​$148,720(3)
4,608(1)
​​​
$586,875(2)
​$715,000(3)
2/22/22
​​​​
$
1,430,000—(3)​​​​
​
$587,000(3)
​​3/2/15
$1,174,000(3)
​​​​$236,250(4)
​​​
​$472,500(4)
2/22/22
​​​​
$
945,000293,500(4)​​​​
Sheldon I. Cammaker
$587,000(4)
​​​​1/2/15
$1,174,000(4)
​​​
​​​
Maxine L. Mauricio
​​​
1/03/22
​​​
​​​
​​​
​​​
4,389(1)
​​7,411(1)
$558,983(2)
​
2/22/22
​​​​
$
324,972(2)​​
​—(3)​​3/2/15
$565,000(3)
​​​​
$
109,2001,130,000(3)​​​​$525,000(3)
​​​
​$1,050,000(3)
2/22/22
​​​​
​
$279,500(4)
​​3/2/15
$559,000(4)
​​​​
$
162,5001,118,000(4)​​​​$325,000(4)
​​​​$650,000(4)​​​​
R. Kevin Matz​​​​1/2/15​​​​​​​​​​​​​​​​​​​​​​​8,551(1)​​​​$374,961(2)​​
​​​3/2/15​​​​$107,120(3)​​​​$515,000(3)​​​​$1,030,000(3)​​​​
​​​3/2/15​​​​$187,500(4)​​​​$375,000(4)​​​​$750,000(4)​​​​
​
(1)
Consists of time-based restricted stock units awarded in January 2022 under our LTIP.
(2)
Represents the aggregate grant date fair value of restricted stock units awarded in January 2022 under our LTIP, the fair value of which was computed in accordance with FASB ASC Topic 718.
(3)
These amounts represent estimated payouts for 2022 based upon financial objectives under our Annual Incentive Program at threshold, target, and maximum and assume that no amount is paid with respect to personal goals and objectives. The actual amounts paid in 2022 with respect to this program are disclosed in the Summary Compensation Table on page 34. The threshold amount assumes that no award is made based upon financial objectives, the target amount assumes that the Financial Target Bonus is achieved, and the maximum amount assumes that the Maximum Potential Incentive Award is achieved, in each case, as described under “Annual Incentive Program” commencing on page 24.
(4)
These estimated payouts reflect cash awards made pursuant to our LTIP in respect of the measurement period 2022 — 2024. The threshold, target and maximum amounts correlate to the earnings per share which could be achieved during the period in comparison to the earnings per share objective under the LTIP as described commencing on page 28 under “Compensation Discussion and Analysis — Long Term Incentive Plan.”
(1)
40
Consists of time-based stock units awarded in January 2015 under our LTIP.
​
(2)
Represents the aggregate grant date fair value of stock units awarded in January 2015 under our LTIP, which fair value was computed in accordance with FASB ASC Topic 718.
​
(3)
These amounts represent estimated payouts pursuant to our Annual Incentive Program for 2015. The actual amounts paid in respect of this program for 2015 are disclosed in the Summary Compensation Table on page 24, and the threshold amounts assume (a) achievement of personal goals and objectives for which the following respective percentage of annual base salary of the named executive officer is paid: Mr. Guzzi–25%; Mr. Pompa–22%; and Messrs. Cammaker and Matz–20% each; and (b) no award based upon financial measurements is made.
​
(4)
These estimated payouts are pursuant to our LTIP in respect of the measurement period 2015–2017, and the threshold amounts assume the minimum earnings per share objective is achieved under the LTIP as described commencing on page 18 under “Compensation Discussion and Analysis”—“Long Term Incentive Plan.”
​
(5)
Consists of time-based stock units awarded in October 2015 to Mr. Guzzi (the “2015 Stock Units”) under our 2010 Incentive Plan.
​
(6)
Represents the aggregate grant date fair value of the 2015 Stock Units, which fair value was computed in accordance with FASB ASC Topic 718.
​
​
-27-
​
The following Table sets forth certain information with respect to unvested outstanding equity awards held by the named executive officers at the end of 2015.2022. There were no unexercised options held by the named executive officers at the end of 2015.2022.
Outstanding Equity Awards at 20152022 Fiscal Year-End
​
​​​Stock Awards​
Name​​Number of Shares or
Units of Stock That
Have Not Vested
(#)		​​Market Value of
Shares or Units of
Stock That
Have Not Vested
($)		​
Anthony J. Guzzi
​​
42,773(1)​Stock Awards
Name
​​​$2,054,815(1)​​
​
35,620(2)​Number of Shares or
Units of Stock That
Have Not Vested
(#)
​​​$1,711,185(2)​​
Market Value of
Shares or Units
of Stock That
Have Not Vested
($)(1)
​
41,749(3)​Anthony J. Guzzi
​​​$2,005,622(3)​​
​
52,600(6)​26,594(2)
​​​
$3,938,837(2)
$2,526,904(6)
​​
Mark A. Pompa
26,239(3)
​​
10,543(1)$3,886,258(3)
​
20,850(4)
​​​
$
506,486(1)​​3,088,094(4)
​
9,234(2)​Mark A. Pompa
​​​$443,601
9,479(2)
​​
​
10,849(3)​
​​​
$
521,186(3)​​1,403,935 (2)
​
12,393(4)​9,346(3)
​​​
$
595,360(4)​​1,384,236 (3)
​
1,843(5)​6,948(4)
​​​
$
88,538(5)​​1,029,068 (4)
Sheldon I. Cammaker
R. Kevin Matz
​​
9,270(1)​6,670(2)
​​​
$
445,331(1)​​987,894 (2)
​
7,797(2)​6,577(3)
​​​
$
374,568(2)​​974,119 (3)
​
7,461(3)​4,627(4)
​​​
$
358,426(3)​​685,305 (4)
​
12,393(4)​Maxine L. Mauricio
​​​$595,360(4)​​
R. Kevin Matz
4,763(2)
​​
8,362(1)$705,448 (2)
​
5,479(3)
​​​
$
401,710(1)​​811,495 (3)
​
7,341(2)​4,406(4)
​​​
$
352,662(2)​​
​
8,609(3)​652,573 (4)
​​​$413,576(3)​​
​
12,393(4)​
​​​$595,360(4)​​
​
1,462(5)​
​​​$70,234(5)​​
​
(1)
Represents LTIP stock units awarded in January 2013 as well as additional stock units that accrued on that award during 2013, 2014 and 2015 pursuant to dividend equivalent awards equal in value to our cash dividends paid during 2013, 2014 and 2015 which would have been paid with respect to Common Stock underlying such January 2013 award; these stock units vested on January 2, 2016.
​
(2)
Represents LTIP stock units awarded in January 2014 as well as additional stock units that accrued on that award during 2014 and 2015 pursuant to dividend equivalent awards equal in value to our cash dividends paid during 2014 and 2015 which would have been paid with respect to Common Stock underlying such January 2014 award; these stock units generally will vest on January 2, 2017.
​
(3)
Represents LTIP stock units awarded in January 2015 as well as additional stock units that accrued on that award during 2015 pursuant to dividend equivalent awards equal in value to our cash dividends paid during 2015 which would have been paid with respect to Common Stock underlying such January 2015 award; these stock units generally will vest on January 2, 2018.
​
(4)
Represents stock units awarded in March 2012 and additional stock units that accrued on that award during 2012, 2013, 2014 and 2015 pursuant to dividend equivalent awards equal in value to our cash dividends paid during 2012, 2013, 2014 and 2015 which would have been paid with respect to Common Stock underlying such March 2012 award; these stock units vested on March 15, 1016.
​
(5)
Represents stock units awarded in March 2014 and additional stock units that accrued during 2014 and 2015 pursuant to dividend equivalent awards equal in value to our cash dividends paid during 2014 and 2015 which would have been paid with respect to Common Stock underlying such March 2014 awards; these awards will generally vest on January 2, 2017.
​
(6)
Represents stock units awarded in October 2015 to Mr. Guzzi; these awards will generally vest on October 28, 2019.
​
​
-28-
​
(1)
The market value of shares or stock units that have not vested is equivalent to the closing price of a share of our Common Stock on the New York Stock Exchange on December 30, 2022, $148.11, multiplied by the respective number of shares.
(2)
Represents LTIP restricted stock units awarded in January 2020 as well as additional restricted stock units that accrued on that award during 2020, 2021 and 2022 pursuant to dividend equivalent awards equal in value to our cash dividends paid during 2020, 2021 and 2022, which would have been paid with respect to Common Stock underlying such January 2020 award; these restricted stock units vested on January 2, 2023.
(3)
Represents LTIP restricted stock units awarded in January 2021 as well as additional restricted stock units that accrued on that award during 2021 and 2022 pursuant to dividend equivalent awards equal in value to our cash dividends paid during 2021 and 2022, which would have been paid with respect to Common Stock underlying such January 2021 award; these restricted stock units generally are eligible to vest on January 4, 2024.
(4)
Represents LTIP restricted stock units awarded in January 2022 as well as additional restricted stock units that accrued on that award during 2022 pursuant to dividend equivalent awards equal in value to our cash dividends paid during 2022, which would have been paid with respect to Common Stock underlying such January 2022 award; these restricted stock units generally are eligible to vest on January 3, 2025.
Unvested restricted stock units reported in the Outstanding Equity Awards at 20152022 Fiscal Year-End Table on page 28set forth above include those restricted stock units awarded in 2013, 20142020, 2021 and 20152022 under our LTIP to each named executive officer and in the case of Mr. Guzzi, an additional 52,600 stock units awarded to him in October 2015, in the case of Messrs. Pompa, Cammaker and Matz, an additional 12,000 stock units awarded to each of them in March 2012, and in the case of Messrs. Pompa and Matz an additional 1,822 and 1,448 stock units, respectively, awarded to them in March 2014.officer. In addition, theirour executive officers’ unvested restricted stock units outstanding as of December 31, 20152022 reflect additional restricted stock units (“Dividend Equivalent Awards”) equal in value to our cash dividends on our Common Stock, which would have been paid in respect of shares of our Common Stock underlying their restricted stock units outstanding as of the dividend payment dates. StockRestricted stock units awarded to Messrs. Pompa, Cammaker and Matz in March 2012January 2020 (and related Dividend Equivalent Awards) vested in full in March 2016 and stock units (and related Dividend Equivalent Awards) awarded to Mr. Guzzi in October 2015 are to vest in full in October 2019. Stock units awarded inon January 2013 (and related Dividend Equivalent Awards) vested in full in January 2016,2, 2023, restricted stock units awarded in January and March 20142021 (and related Dividend Equivalent Awards) are eligible to vest in full inon January 2017,4, 2024, and restricted stock units awarded in January 20152022 (and related Dividend Equivalent Awards) are eligible to vest in full inon January 2018.3, 2025. However, if we experience a change of control prior to the scheduled vesting date, unvested restricted stock units (and related Dividend Equivalent Awards) will vest in full at that time and shares of our Common Stock will be issued in respect of them. If the employment of a named executive officer is terminated by us without cause or by himhim/her for good reason, or if hishis/her employment terminates by reason of hishis/her death, permanent disability or retirement at age 65 or older, the restricted stock units awarded to himhim/her under our LTIP and, in the case of Mr. Guzzi, those stock units awarded to him in October 2015, and in the case of Messrs. Pompa and Matz those stock units awarded to them in March 2014, will vest in full at such time and the shares of our Common Stock to be issued in respect of such restricted stock units will be issued thereafter, and,thereafter; however, if the employment of the named executive officer is terminated by us for cause or hehe/she terminates hishis/her employment without good reason, before hishis/her restricted stock units vest, hehe/she will forfeit the restricted stock units (and related Dividend Equivalent Awards). The terms “cause,” “good reason,” “change of control,” and “disability”“permanent disability” are defined for purposes of all stock unit awards similarly to those definitions commencing on page 3447 under “Potential Post Employment Payments”Payments —“Long Term Incentive Plan.” The stock units granted to Messrs. Pompa, Cammaker and Matz in March 2012 vested in full on March 15, 2016.
41
The following Table sets forth with respect to each named executive officer certain information with respect to stock awards that vested during fiscal year 2015.2022. No options were held by the named executive officers in fiscal year 2015.2022.
Stock Vested in Fiscal Year 20152022
 
​​
Stock Awards
Name
​​
Number of Shares
Acquired on Vesting
(#)
​​
Value Realized
on Vesting
($)(1)
Anthony J. Guzzi
​​
37,959
​​
$4,834,458
Mark A. Pompa
​​
59,502(2)
​​
$6,456,287
R. Kevin Matz
​​
9,491
​​
$1,208,774
Maxine L. Mauricio
​​
6,658
​​
$847,963
(1)
The value realized is equivalent to the closing price of a share of our Common Stock on the New York Stock Exchange on the date that the restricted stock unit award vested, multiplied by the number of shares acquired upon vesting.
(2)
Includes vesting of an award of 45,000 restricted stock units granted by the Compensation Committee in June 2017, together with additional restricted stock units that accrued during the period from 2017- 2022 pursuant to dividend equivalent awards equal in value to our cash dividends paid during such period which would have been paid with respect to Common Stock underlying such June 2017 award.
​42
​​​Stock Awards​
Name​​Number of
Shares
Acquired
on Vesting
(#)		​​Value
Realized on
Vesting
($)		​
Anthony J. Guzzi​​​​35,723​​​​$1,566,454​​
​​​13,367​​​​​586,143​​
​​​82,707​​​​​3,764,823​​
Mark A. Pompa​​​​13,157​​​​$576,934​​
Sheldon I. Cammaker​​​​11,770​​​​$516,115​​
R. Kevin Matz​​​​10,336​​​​$453,234​​
-29-
​
NON-QUALIFIED DEFERRED COMPENSATION
As indicated above, certain of our employees, including each named executive officer, are permitted to defer compensation under the Company’s Voluntary Deferral Plan in order to make eligible employeesthem whole for compensation limits imposed under our 401(k) Savings Plan, and thus, enabling additional savings for retirement on a tax deferred basis.
The Voluntary Deferral Plan permits an eligible employee to defer annually up to one-half of that portion of hishis/her base salary in excess of the limits described in Section 401(a)(17) of the Internal Revenue Code of 1986, as amended, referred to herein as the “Code” (for 20152022, the limit was $265,000)$305,000) and/or up to 100% of any annual cash bonus and/or cash incentive payments to him.him/her. A participating employee’s account is also credited with a Company matching credit of up to 4% on deferrals, but not in excess of 4% of base salary in excess of the federal tax limit described above, plus possible Company supplemental credits. Accounts under the Voluntary Deferral Plan are credited with hypothetical earnings and losses based on notional investments (mutual funds) selected by the participating employee in accordance with the Voluntary Deferral Plan terms. Accounts would also be distributable upon a change of control of the Company.
Accounts deferred in 2013 are payable in a lump sum following the participant’s termination of employment and accounts deferred on or after January 1, 2014 are payable in either a lump sum or, provided the participant’s employment terminates after hehe/she has reached age 59-1/2, in five annual installments following termination of employment, as elected for each year’s deferral by the participant at the time of deferral election.
The following Table sets forth certain information regarding (a) deferrals and matching credits under our Voluntary Deferral Plan with respect to the accounts of each of our named executive officers during fiscal year 20152022 and (b) each such executive officer’s account balance as of December 31, 2015.2022.
​Name​​
Executive
Contributions in
Last
Fiscal Year(1)
​​
Company
Contributions in
Last
Fiscal Year(2)
​​
Aggregate
Earnings in
Last
Fiscal Year(3)
​​Aggregate
Withdrawal
Distributions		​​
Aggregate Balance
at Last
Fiscal Year
End(4)
​
​Anthony J. Guzzi​​​$42,777​​​​$41,026​​​​$(1,324)​​​​​—​​​​$246,480​​
​Mark A. Pompa​​​$79,454​​​​$20,253​​​​$(1,808)​​​​​—​​​​$223,746​​
​Sheldon I. Cammaker​​​$16,050​​​​$13,770​​​​$(733)​​​​​—​​​​$88,661​​
​R. Kevin Matz​​​$15,739​​​​$13,240​​​​$(522)​​​​​—​​​​$85,058​​
Name
​​
Executive
Contributions in
Last Fiscal
Year(1)
​​
Company
Contributions in
Last Fiscal
Year(2)
​​
Aggregate
Earnings in
Last Fiscal
Year(3)
​​
Aggregate
Withdrawal
Distributions
​​
Aggregate Balance
at Last Fiscal
Year End(4)
Anthony J. Guzzi
​​
$48,000
​​
$47,883
​​
$(194,651)
​​
—
​​
$1,151,519
Mark A. Pompa
​​
$153,000
​​
$24,610
​​
$(313,326)
​​
—
​​
$1,730,435
R. Kevin Matz
​​
$70,440
​​
$15,087
​​
$(105,172)
​​
—
​​
$552,355
Maxine L. Mauricio
​​
$197,750
​​
$13,910
​​
$(62,056)
​​
—
​​
$572,566
​
(1)
Amounts reported in this column are included in the Summary Compensation Table on page 34 under Salary for Messrs. Guzzi and Pompa and under both Salary and Non-Equity Incentive Plan Compensation for Mr. Matz and Ms. Mauricio.
(2)
Amounts reported in this column are included under All Other Compensation in the Summary Compensation Table on page 34.
(3)
This column includes earnings (and losses) on deferred compensation balances. Such amounts are not “above-market” or “preferential” earnings and, therefore, are not reported as compensation in the Summary Compensation Table on page 34.
(4)
This column reflects the aggregate amounts deferred by each named executive officer since the Voluntary Deferral Plan became effective on January 1, 2013 plus the aggregate credits provided by the Company and invested earnings on such deferrals and credits.
(1)
43
Amounts reported in this column are included under Salary in the Summary Compensation Table on page 24.
​
(2)
Amounts reported in this column are included under All Other Compensation in the Summary Compensation Table on page 24.
​
(3)
This column includes earnings (and losses) on deferred compensation balances. Such amounts are not “above-market” or “preferential” earnings and, therefore, are not reported as compensation in the Summary Compensation Table on page 24.
​
(4)
This column reflects the aggregate of salary deferred by each named executive since the Voluntary Deferral Plan became effective on January 1, 2013 plus the aggregate credits provided by the Company and invested earnings on such deferrals and credits.
​
​
-30-
​
POTENTIAL POST EMPLOYMENT PAYMENTS
Severance Agreements
Messrs. Guzzi, Pompa Cammaker, and Matz, each a named executive officer,and Ms. Mauricio are parties to severance agreements with us, which we refer to as the “Severance Agreements.“severance agreements.” The Severance Agreementsseverance agreements each provide for specified benefits under certain circumstances should the named executive officer’s employment with us terminate.
Termination by us without Cause or Termination by the Named Executive Officer for Good Reason
The Severance Agreementsseverance agreements for each of Messrs. Guzzi, Pompa, Matz, and MatzMs. Mauricio each provide that if thesuch named executive officer’s employment is terminated by us without “cause” (defined below) or if hehe/she terminates hishis/her employment for “good reason” (defined below), we will pay the named executive officer an amount equal to twice hishis/her annual base salary in effect immediately prior to hishis/her termination. In June 2015, the Severance Agreement with Mr. Cammaker was amended effective January 2016 to provide for a payment equal to the greater of  $400,000 or 12 months of his then current annual base salary if his employment terminates for any reason. We will pay this amount to the applicable named executive officer (other than Mr. Cammaker) in eight equal installments and in the case of Mr. Cammaker, in four equal quarterly installments. In addition, we will pay to the named executive officer all unpaid amounts for hishis/her annual incentive awards for any calendar year ended before the date of termination. We will also pay the named executive officer an amount equal to a prorated portion of hishis/her targeted annual incentive award based on hishis/her personal goals and objectives for the year in which hishis/her termination takes place and a prorated portion of the annual incentive award based upon our financial performance that hehe/she would have received had hehe/she been employed for the entire year. We will calculate these amounts by multiplying the applicable incentive award amount by a fraction, the numerator of which is the number of days in the calendar year in which the termination occurs that hehe/she was employed by us and the denominator of which is 365.
We will also provide, at our expense, coverage for the named executive officer (and, to the extent applicable, hishis/her eligible dependents) under our medical, dental and hospitalization insurance plans for a period of 18 months from the date of termination. In addition, we will provide, at our expense, coverage under our group life and accidental death and dismemberment insurance plans for a period of 12 months from the date of termination. However, if a successor employer of the named executive officer provides comparable coverage, we will stop providing coverage.
No amounts are payable under a Severance Agreementseverance agreement if the named executive officer (other than Mr. Cammaker)officer’s employment is terminated by us for cause or by him or her without good reason. In addition, no severance benefits are payable under a Severance Agreementseverance agreement if benefits are payable under a named executive officer’s change of control agreement described commencing on page 37.49.
Definition of Cause and Good Reason
“Cause” is defined in each such named executive officer’s Severance Agreementseverance agreement as:
•
the named executive officer committing an action involving willful malfeasance in connection with hishis/her employment which results in material harm to us;
​
•
the named executive officer committing a material and continuing breach of the terms of his Severance Agreementhis/her severance agreement if the breach is not cured within 60 days after we provide the named executive officer with written notice of any such breach; or
​
•
the named executive officer’s conviction of a felony.
​
For purposes of this definition, no act, or failure to act, on the named executive officer’s part, is deemed “willful” unless done, or omitted to be done, by himhim/her in bad faith. In addition, cause will only exist if there was no reasonable belief that the named executive officer’s act, or failure to act, was in our best interest and the best interest of our subsidiaries.
“Good reason” is defined in each such named executive officer’s Severance Agreementseverance agreement as:
•
our reducing the named executive officer’s then annual base salary, except in connection with a similar reduction in salary that applies to all our senior executives;
​
​
-31-
​
•
our or one of our subsidiaries failing to pay to the named executive officer any portion of hishis/her current compensation that is already earned and due;
​
•
our failure to obtain the assumption (either specifically or by operation of law) of the named executive officer’s Severance Agreementseverance agreement by any successor to, or assign of, us or any person acquiring substantially all of our assets; or
​
•
the termination of a specified Indemnity Agreementindemnity agreement in effect between the named executive officer and us.
​
44
In addition, Mr. Guzzi’s Severance Agreementseverance agreement provides that “good reason” also includes any reduction by the Company of his authority, duties, or responsibilities or any removal of him from his current office other than by the Company for cause or as a result of his permanent disability or by him for good reason.disability.
Payments in the Event of Permanent Disability
Each such named executive officer’s Severance Agreement (other than Mr. Cammaker’s Severance Agreement)severance agreement also provides that, in the event of hishis/her “permanent disability” (defined below), we will provide the same insurance benefits described above in the case of termination of hishis/her employment by us without cause or by himhim/her for good reason.
In the event of permanent disability, we will also pay the named executive officer a lump sum payment equal to:
•
all unpaid amounts in respect of any annual incentive award for any calendar year ending before the calendar year in which such termination occurs, which would have been payable had the named executive officer remained employed by us until the date such annual incentive award would otherwise have been paid,paid; plus
​
•
a prorated amount of his or her targeted annual incentive awards for the year in which hishis/her employment terminates.
​
“Permanent disability” exists if the named executive officer has been absent from hishis/her duties on a full-time basis for a period of six consecutive months as a result of hishis/her incapacity due to physical or mental illness.
Payments in the Event of Death
Each such named executive officer’s Severance Agreement (other than Mr. Cammaker’s Severance Agreement)severance agreement also provides for payment upon the named executive officer’s death to his or her estate or his or her designated beneficiaries of a lump sum equal to:
•
three months of his or her base salary and any unpaid annual incentive awards as of the date of his or her death for any calendar year ending before the year in which his or her death occurs, which would have been payable had he or she remained employed by us until the date such annual incentive awards would otherwise have been paid,paid; plus
​
•
a prorated amount of his or her targeted annual incentive awards for the year in which his or her death occurs.
​
Non-Competition Restriction
Each Severance Agreementseverance agreement also provides that for two years following termination of the named executive officer’s employment, hehe/she will not, directly or indirectly, own, manage, operate, conduct, control or participate, as a director, officer, employee, consultant, partner, or equity owner or otherwise, in the ownership, management, operation, conduct or control of, or accept employment with, or be connected in any manner with, any business that is in competition with us or any of our subsidiaries. This restriction does not apply to ownership of 2% or less of the debt or equity securities of corporations listed on a registered securities exchange. The restriction applies in any state in the United States where we or any of our subsidiaries conduct business.
-32-
​
However, the named executive officer will not be deemed to be so involved with a competing business if:
•
no more than 20% of its consolidated revenues (based on its most recently completed fiscal year) is attributable to one or more business activities, which we refer to as “Incidental Competitive Activities,” that are in competition with us or one of our subsidiaries; and
​
•
the named executive officer is not engaged directly or indirectly in such Incidental Competitive Activity.
​
The named executive officer will be released from hishis/her non-competition obligation if hehe/she waives hishis/her right to receive hishis/her severance benefits.
45
Non-Solicitation Restriction
For aone year following the termination of hishis/her employment, each named executive officer also has agreed in his Severance Agreementhis/her severance agreement that hehe/she will not on hishis/her own or anyone else’s behalf:
•
solicit, encourage, or participate in soliciting or encouraging, any customer or supplier of ours or of any of our subsidiaries, or any other person or entity, to terminate or adversely alter such person’s or entity’s customer, supplier, or other relationship with us or any of our subsidiaries; or
​
•
hire any person who at the time of offer of employment or within six months prior to such offer was an employee of ours or any of our subsidiaries or encourage or participate in soliciting or encouraging any employee of ours or any of our subsidiaries to terminate (or otherwise adversely alter) hishis/her employment relationship.
​
Long Term Incentive Plan
Under our LTIP, we award each named executive officer annually a number of restricted stock units in respect of which, following a scheduled vesting date, we will issue an equal number of shares of our Common Stock. (TheThe LTIP is more fully described commencing on page 1828 under “Compensation Discussion and Analysis” and under the heading “Long Term Incentive Plan and Special Equity Awards” commencing on page 25 following the Summary Compensation Table.)Plan.” In addition, under the LTIP each named executive officer is also entitled to a performance-based cash incentive award if we achieve a pre-determined earnings per share objective for a three yearthree-year measurement period.
LTIP Restricted Stock Units
A number of shares of our Common Stock equal to the named executive officer’s LTIP restricted stock units are to be issued to himhim/her prior to the scheduled vesting date if:
•
we experience a “change of control” (which we define below) (provided that the Compensation Committee does not reasonably determine that the change of control is not an event described in Section 409A(a)(2)(A)(v) of the Internal Revenue Code);
​
•
we terminate the named executive officer’s employment without “cause” (which we define below);
​
•
the named executive officer terminates hishis/her employment for “good reason” (which we define below);
​
•
the named executive officer retires at age 65 or older;
​
•
the named executive officer becomes permanently disabled and hishis/her employment terminates as a result; or
​
•
the named executive officer dies.
​
In such event, the issuancevesting of the shares of our Common Stock will occur as of the date of the change of control or such termination of employment. However, in the case of termination of employment, that distribution will be delayed for six months following the named executive officer’s termination of employment if necessary to avoid any excise tax under Section 409A of the Internal Revenue Code. If we terminate the named executive officer’s employment for cause or the named executive officer resigns without good reason, hehe/she will forfeit hishis/her unvested LTIP restricted stock units.
-33-
​
Performance-Based Cash Incentive Awards
In addition, if, during one or more LTIP measurement periods, a named executive officer’s employment is terminated under circumstances described above entitling himhim/her to receive shares of our Common Stock in respect of hishis/her LTIP restricted stock units, hehe/she also will be entitled to a prorated portion of the amount of hishis/her performance-based cash incentive award for each measurement period that hehe/she would have received had hehe/she been employed by us during the entire measurement period. This amount is equal to that performance-based cash incentive award for each such measurement period multiplied by a fraction, the numerator of which is the number of full and partial months that have elapsed during the measurement period as of hishis/her termination date, and the denominator of which is the total number of months making up the measurement period. Performance-based cash incentive awards under the LTIP are more fully described commencing on page 1828 under “Compensation Discussion and Analysis” and under the heading “Long Term Incentive Plan and Special Equity Awards” commencing on page 25 following the Summary Compensation Table.
Plan.” We would make these payments to our named executive officers at such time as the payment would have been made had there been no termination of employment.
46
If we or a named executive officer had terminated hishis/her employment as of December 31, 20152022 under circumstances described above (or had retired) entitling himhim/her to receive shares of our Common Stock in respect of hishis/her LTIP restricted stock units, then such named executive officer would have been entitled to payments in respectthe amount of his/her performance-based cash incentive awardsaward under the LTIP for the 2013–20152020  —  2022 measurement period, and a prorated portion of such award for the 2014–20162021  —  2023 measurement period, and for the 2015–20172022  —  2024 measurement period.
In addition, if during one or more measurement periods there is a change of control, then promptly thereafter we would pay each named executive officer hishis/her performance-based cash incentive award under the LTIP for each such measurement period as if the Company had achieved 100% of its aggregate earnings per share objective for such measurement period. If there had been a change of control as of December 31, 2015,2022, such named executive officers would have been entitled to payments in respectreceive (a) the actual amount of his/her performance-based cash incentive award for the 2020  —  2022 period, and (b) the amount of his/her performance-based cash incentive awards underas if 100% of the LTIPearnings per share objective had been achieved for the 2013–2015 measurement period, for the 2014–2016 measurement period,2021  —  2023 and for the 2015–2017 measurement period.2022  —  2024 periods.
If, as of December 31, 2015,2022, we had terminated the employment of a named executive officer for cause or the named executive officer had resigned without good reason, then hehe/she would not have been entitled to payment in respect of any performance-based cash incentive award under the LTIP for any measurement period.
Definition of Cause, Good Reason, Change of Control and Disability
For purposes of the LTIP, “cause,” generally, means:
•
the named executive officer committing an action involving willful malfeasance in connection with hishis/her employment which results in material harm to the Company;
​
•
the named executive officer’s conviction of a felony; or
​
•
the named executive officer’s substantial and repeated failure to perform duties as directed by our Chief Executive Officer or, in the case of our Chief Executive Officer, our Board.
​
“Good reason,” generally, means:
•
a reduction in the named executive officer’s then base salary (except in connection with a reduction generally applicable to all our senior executives); or
​
•
the failure to pay any portion of the named executive officer’s compensation that is earned and due.
​
“Change of control” has substantially the same meaning as in the change of control agreements described under “Change of Control Arrangements” commencing on page 3749 and “disability”“permanent disability” has the same meaning as described under “Potential Post Employment Payments”Payments —“Severance Agreements” on page 32.
45.
-34-
​
Voluntary Deferral Plan
Under our Voluntary Deferral Plan, discussed under “Retirement Plans” commencing on page 21, under “Voluntary Deferral Plan” on page 26, and under “Non-Qualified Deferred Compensation” on page 30, in which eachEach of our named executive officers currently participates in our Voluntary Deferral Plan. Under such plan, following the termination of a participant’s employment, the named executive officersuch participant is to be paid the balance in hisof his/her account representing hishis/her deferred compensation, the Company’s matching credits, and hypothetical earnings and losses on notional account investments. Deferrals made in 2013 and related Company matching (including supplemental) credits, as adjusted for notional investment experience, are payable in a lump sum following termination of employment, and deferrals and related credits, as adjusted for notional investment experience, made after 2013 are payable in a lump sum or up to five annual installments following the executive’sparticipant’s termination of employment, as elected by the executive at the time of the initial deferral. Those account balances are also payable to the executive upon a change in control of the Company.
Special Equity Awards
In October 2015, Mr. Guzzi was awarded 52,600 stock units entitling him to 52,600 shares of our Common Stock if he remains in our employ until October 28, 2019. In March 2012, each of Messrs. Pompa, Cammaker and Matz was awarded 12,000 stock units entitling him to 12,000 shares of our Common Stock if he remains in our employ until March 15, 2016. In addition, in March 2014, Messrs. Pompa and Matz were awarded 1,822 and 1,448 stock units, respectively, entitling them to an equal number of shares of our Common Stock if Mr. Pompa or Mr. Matz, as applicable, remains in our employ until January 2, 2017. With respect to the award to Mr. Guzzi in October 2015, and with respect to the awards to Messrs. Pompa and Matz in March 2014, if before we issue the shares underlying such stock units held by any such executive, we experience a change of control, we terminate his employment without cause, or if he terminates his employment for good reason, becomes disabled and his employment terminates as a result or if he dies or retires at age 65 or older, the shares of our Common Stock in respect of such award to him will be issued as of the change of control or such termination of employment. The terms “cause,” “good reason,” “change of control” and “disability” are substantially the same as those terms are describedVoluntary Deferral Plan is further discussed under “Non-Qualified Deferred Compensation” on page 34 for purposes of the LTIP. The March 2012 stock units granted to Messrs. Pompa, Cammaker and Matz vested in full in March 2016.43.
-35-47
​
Severance Benefits Table
​
The following Table sets forth for each named executive officer (a) cash payments and the value of benefits continuation under his Severance Agreementhis/her severance agreement as described commencing on page 3144 to which hehe/she would have been entitled if hishis/her employment had been terminated on December 31, 20152022 by the Company without cause, or by himhim/her for good reason, or upon his/her death or disability, (b) the value as of December 31, 20152022 of (i) shares issuable to himhim/her in respect of hishis/her restricted stock units and (ii) hishis/her pro rata performance-based cash incentive awards under our LTIP, in each instance, that hehe/she would have been entitled to upon termination of hishis/her employment on December 31, 20152022 by the Company without cause, or by himhim/her for good reason, or upon his/her death or disability, and (c) the value of hishis/her account under the Company’s Voluntary Deferral Plan as of December 31, 20152022 to which hehe/she would be entitled upon hishis/her termination of employment on that date. The value of the shares has been calculated by multiplying the number of such shares by the closing price on the New York Stock Exchange of a share of our Common Stock on December 31, 2015.30, 2022 ($148.11). The value of benefits continuation is based on the Company’s estimate of the cost of providing (a) healthcare coverage for the named executive officer and hishis/her eligible dependents for an 18 month period under hishis/her current plan option and coverage level and (b) life insurance and accidental death and dismemberment insurance equivalent to hishis/her current group coverage for 12 months. The cash payment in respect of the LTIP performance-based cash incentive awards assumes that for each relevant measurement period ending after December 31, 2015,2022, actual earnings per share equaled the targeted earnings per share objective for such measurement period, and the cash payment in respect of the performance-based annual incentive award included in clause (a) of the first sentence of this paragraph assumes the achievement of targeted levels.
​​Cash
Payment
under
Severance
Agreement		​Cash
Equivalent
of Shares
Issuable in
Respect of
Accelerated
Vesting of
Stock
Units		​
Cash
Payment in
Respect of
LTIP
Performance-
Based
Cash
Incentive
Awards(a)
​Value of
Account
Under
Voluntary
Deferral
Plan		​Benefits
Continuation		​Total​
​​
Cash
Payment
under
Severance
Agreement
​
Cash
Equivalent
of Shares
Issuable in
Respect of
Accelerated
Vesting of
Stock Units
​
Cash
Payment in
Respect of
LTIP
Performance-
Based Cash
Incentive
Awards(a)
​
Value of
Account
Under
Voluntary
Deferral
Plan
​
Benefits
Continuation
​
Total
Anthony J. Guzzi​​​
 
​
 
​
 
​
 
​
 
​
 
Termination Without Cause or For Good
Reason		​​$3,412,500​​​$8,298,526​​​$4,011,500​​​$246,480​​​$46,893​​​$16,015,899​​​
$3,900,000
​
$10,913,189
​
$6,857,271
​
$1,151,519
​
$43,468
​
$22,865,447
Termination by Reason of Death​​$1,575,000​​​$8,298,526​​​$4,011,500​​​$246,480​​—​​$14,131,506​​​
$1,800,000
​
$10,913,189
​
$6,857,271
​
$1,151,519
​
—
​
$20,721,979
Termination by Reason of Disability​​$1,312,500​​​$8,298,526​​​$4,011,500​​​$246,480​​​$46,893​​​$13,915,899​​​
$1,500,000
​
$10,913,189
​
$6,857,271
​
$1,151,519
​
$43,468
​
$20,465,447
​
 
​
 
​
 
​
 
​
 
​
 
Mark A. Pompa​​​
 
​
 
​
 
​
 
​
 
​
 
Termination Without Cause or For Good
Reason		​​$2,015,000​​​$2,124,162​​​$1,060,625​​​$223,746​​​$36,242​​​$5,459,775​​​
$2,371,500
​
$3,817,239
​
$2,424,500
​
$1,730,435
​
$43,468
​
$10,387,142
Termination by Reason of Death​​$877,500​​​$2,155,170​​​$1,060,625​​​$223,746​​—​​$4,317,041​​​
$1,032,750
​
$3,817,239
​
$2,424,500
​
$1,730,435
​
—
​
$9,004,924
Termination by Reason of Disability​​$715,000​​​$2,124,162​​​$1,060,625​​​$223,746​​​$36,242​​​$4,159,775​​​
$841,500
​
$3,817,239
​
$2,424,500
​
$1,730,435
​
$43,468
​
$8,857,142
Sheldon I. Cammaker​​
Termination Without Cause or For Good
Reason		​​$1,575,000(b)​​​$1,742,677​​​$848,855​​​$88,661​​​$68,133​​​$4,323,326​​
Termination by Reason of Death​​$656,250(b)​​​$1,773,685​​​$848,855​​​$88,661​​—​​$3,367,451​​
Termination by Reason of Disability​​$525,000(b)​​​$1,742,677​​​$848,855​​​$88,661​​​$68,133​​​$3,273,326​​
​
 
​
 
​
 
​
 
​
 
​
 
R. Kevin Matz​​​
 
​
 
​
 
​
 
​
 
​
 
Termination Without Cause or For Good
Reason		​​$1,545,000​​​$1,802,534​​​$841,875​​​$85,058​​​$53,834​​​$4,328,301​​​
$1,761,000
​
$2,647,318
​
$1,695,167
​
$552,355
​
$37,578
​
$6,693,418
Termination by Reason of Death​​$643,750​​​$1,833,543​​​$841,875​​​$85,058​​—​​$3,404,226​​​
$733,750
​
$2,647,318
​
$1,695,167
​
$552,355
​
—
​
$5,628,590
Termination by Reason of Disability​​$515,000​​​$1,802,534​​​$841,875​​​$85,058​​​$53,834​​​$3,298,301​​​
$587,000
​
$2,647,318
​
$1,695,167
​
$552,355
​
$37,578
​
$5,519,418
​
 
​
 
​
 
​
 
​
 
​
 
Maxine L. Mauricio
​
 
​
 
​
 
​
 
​
 
​
 
Termination Without Cause or For Good Reason.
​
$1,695,000
​
$2,169,515
​
$1,303,073
​
$572,566
​
$40,408
​
$5,780,562
Termination by Reason of Death
​
$706,250
​
$2,169,515
​
$1,303,073
​
$572,566
​
—
​
$4,751,404
Termination by Reason of Disability
​
$565,000
​
$2,169,515
​
$1,303,073
​
$572,566
​
$40,408
​
$4,650,562
​
(a)
Includes actual amounts paid in respect of the LTIP performance period January 1, 2020 — December 31, 2022.
(a)
48
Includes actual amounts paid in respect of the LTIP performance period January 1, 2013–December 31, 2015.
​
(b)
Effective as of January 1, 2016, the Severance Agreement of Mr. Cammaker was amended as described under “Potential Post Employment Payments” — “Severance Agreements” commencing on page 31. If such amendment had been in effect on December 31, 2015, the amount payable to Mr. Cammaker under this column due to his termination of employment for any reason would have been $800,000 (based upon his 2016 base salary and target bonus), or $1,050,000 (based upon his 2015 base salary and target bonus).
​
​
-36-
​
Change of Control Arrangements
Messrs. Guzzi, Pompa, Cammaker, and Matz, each aEach of our named executive officer, are partiesofficers is a party to a change of control agreementsagreement with us, which we refer to collectively as the “Change of Control Agreements.” The purpose of the Change of Control Agreements is to retain the services of such named executive officers during a period ofpotential change of control so that they can focus on our business, making decisions which are in our best interests and the best interests of our stockholders, even if such decisions lead to their departure, and so that we may retain these individuals during that period and the transition to new ownership.
Generally, no benefits are provided under the Change of Control Agreements for any type of termination before a change of control, for termination after a change of control due to death or disability, for termination for cause, or for voluntary termination (other than for good reason). The terms “change of control,” “cause” and “good reason” are defined below.
Each such named executive officer’s Change of Control Agreement generally provides for a severance benefit if we terminate hishis/her employment without cause or hehe/she terminates hishis/her employment for good reason within two years following a change of control. This severance benefit is equal to the sum of three times:
•
his or her annual base salary at the time of the change of control;
​
•
the higher of (a) his or her annual incentive awards for the year prior to the change of control or (b) the average of his or her annual incentive awards for the three years before the change of control; and
​
•
except for Ms. Mauricio, the value of perquisites provided in respect of the year prior to the change of control.
​ Ms. Mauricio’s Change of Control Agreement was amended in April 2017 to remove the value of perquisites from the calculation of her severance benefit.
In addition, under the Change of Control Agreements, with respect to the year in which the change of control occurs, each such named executive officer also is entitled to a pro rata amount of the higher of (a) his or her annual incentive awards for the year prior to the change of control or (b) the average of his or her annual incentive awards for the three years prior to the change of control.
Other severance benefits include outplacement assistance and a continuation of healthcare coverage and life insurance benefits for three years. Each such named executive officer agreed that he or she would retain in confidence all of our confidential information.
If the severance benefits provided for under the Change of Control Agreements are paid to such named executive officers and/or if, in connection with a change of control, other payments or distributions are made by us to, or for the benefit of, such named executive officers, or other benefits are conferred upon them, pursuant to the terms of any other agreement, policy, plan or program, they might constitute an “excess parachute payment” within the meaning of Section 280G of the Code, on which an excise tax would be due. In that case, under the Change of Control Agreements for Messrs. Pompa and Matz, which were signed on June 22, 1998, and for Mr. Guzzi, which was signed on December 25, 2004, such named executive officers would also be entitled to such additional payments as may be necessary to ensure that the net after-tax benefit of all such amounts shall be equal to their respective net after-tax benefits as if no excise tax had been imposed. Ms. Mauricio’s Change of Control Agreement does not provide for such additional payments but instead reduces the amount payable to her so that such benefits will not be deemed an “excess parachute payment.”
As described above under “Potential Post Employment Payments”Payments  —“Long Term Incentive Plan” commencing on page 33,46, and “Potential Post Employment Payments”Payments  —“Voluntary Deferral Plan” on page 35 and “Potential Post Employment Payments”—“Special Equity Awards” on page 35,47, performance-based cash incentive awards under the LTIP and the LTIP restricted stock units as well as the Special Equity Awards, will also vest upon, and be payable following, a change of control, and account balances under the Voluntary Deferral Plan will be payable upon a change of control.
Definition of Change of Control, Cause and Good Reason
For purposes of the Change of Control Agreements, a “change of control” means, in general, the occurrence of:
•
a person or group of persons acquiring 25% or more of our voting securities;
​
•
our stockholders approving a merger, business combination or sale of our assets, with the holders of our Common Stock prior to such transaction owning less than 65% of the voting securities of the resulting corporation; or
​
​
49
-37-
​
•
our Incumbent Directors failing to constitute at least a majority of our Board during any two yeartwo-year period. An “Incumbent Director” is defined, generally, as a director who was serving as such before the beginning of such two year period or, if not a director at such time, generally, if such director was elected to the Board by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors.
​
“Cause” is defined as:
•
the named executive officer’s willful and continued failure to perform substantially his or her duties for us (other than by reason of physical or mental illness); or
​
•
his or her conviction of, or plea of guilty or nolo contendere to, a felony; or
​
•
his or her willful engagement in gross misconduct which is materially and demonstrably injurious to us.
​
“Good Reason” is defined as occurring if:
•
the named executive officer’s annual base salary is reduced;
​
•
his or her annual incentive awards are reduced below the higher of (a) the annual incentive awards paid or payable to him or her in respect of the year before the change of control or (b) the average of his or her annual incentive awards paid or payable to him or her in respect of the three years prior to the change of control;
​
•
his or her duties and responsibilities are materially and adversely reduced;
​
•
the program of incentive compensation and retirement and insurance benefits offered to him or her are materially and adversely reduced;
​
•
he or she is required to relocate more than 50 miles from his or her primary work location before the change of control; or
​
•
thehis or her Change of Control Agreement is not assumed by a successor to the Company.
​
​
50
-38-
​
Change of Control Benefits Table
​
The following Table sets forth for each named executive officer (a) cash payments and the value of benefits continuation under hishis/her Change of Control Agreement as described commencing on page 3749 to which hehe/she would have been entitled upon a change of control and termination of hishis/her employment on December 31, 20152022 by the Company without cause or by himhim/her for good reason, (b) the value as of December 31, 20152022 of (i) shares issuable to himhim/her in respect of hishis/her restricted stock units and (ii) hishis/her performance-based cash incentive awards under our LTIP as described commencing on page 33,46, in each instance, that heto which he/she would have been entitled to upon a change of control on December 31, 2015,2022, and (c) the value of hishis/her account under the Company’s Voluntary Deferral Plan as of December 31, 20152022 to which hehe/she would be entitled by reason of a change of control. In addition, it sets forth for each named executive officerMessrs. Guzzi, Pompa and Matz the amount that would have been paid to him under his Change of Control Agreement to compensate him for the excise tax, if any, payable on the compensation received as a result of termination of his employment upon such change of control and such additional amounts as may be necessary to ensure that histhe net after-tax benefits of the amounts payable to him under his Change of Control Agreement and other benefits are equal to the net after tax benefits as if no excise tax, if any, had been imposed. The value of the shares has been calculated by multiplying the number of such shares by the closing price on the New York Stock Exchange of a share of our Common Stock on December 31, 2015.30, 2022 ($148.11). The value of benefits continuation is based on the Company’s estimate of the cost of providing (a) healthcare coverage for the named executive officer and hishis/her eligible dependents for a 36 month period under hishis/her current plan option and coverage level and (b) life insurance and accidental death and dismemberment insurance equivalent to hishis/her current group coverage for 36 months. The value of outplacement is based on the Company’s estimate of the current cost of obtaining outplacement services for the named executive officer.
​​Cash
Payment
Under
Change of
Control
Agreement		​Cash
Equivalent
of Shares
Issuable in
Respect of
Accelerated
Vesting of
Stock Units		​
Cash
Payment in
Respect of
Acceleration
of LTIP
Performance-
Based
Cash Incentive
Awards(a)
​Value
of
Account
Under
Voluntary
Deferral
Plan		​Benefits
Continuation		​Out-
Placement		​Compensation
for Additional
Taxation		​Total​
​​
Cash
Payment
Under
Change of
Control
Agreement
​
Cash
Equivalent
of Shares
Issuable in
Respect of
Accelerated
Vesting of
Stock Units
​
Cash
Payment in
Respect of
Acceleration
of LTIP
Performance-
Based
Cash
Incentive
Awards(a)
​
Value
of
Account
Under
Voluntary
Deferral
Plan
​
Benefits
Continuation
​
Out-
Placement
​
Compensation
for Additional
Taxation
​
Total
Anthony J. Guzzi​​$12,398,245​​​$8,298,526​​​$5,713,500​​​$246,480​​​$114,581​​​$25,000​​​$8,552,456​​​$35,348,788​​​
$15,791,578
​
$10,913,189
​
$9,393,313
​
$1,151,519
​
$143,246
​
$36,000
​
$—
​
$37,428,845
Mark A. Pompa​​$7,103,301​​​$2,155,170​​​$1,528,125​​​$223,746​​​$79,928​​​$25,000​​—​​$11,115,270​​​
$9,248,530
​
$3,817,239
​
$3,287,625
​
$1,730,435
​
$126,050
​
$36,000
​
$5,439,176
​
$23,685,055
Sheldon I. Cammaker​​$5,660,920​​​$1,773,685​​​$1,172,813​​​$88,661​​​$196,094​​​$25,000​​—​​$8,917,173​​
R. Kevin Matz​​$5,386,670​​​$1,833,543​​​$1,213,125​​​$85,058​​​$129,739​​​$25,000​​—​​$8,673,135​​​
$6,871,517
​
$2,647,318
​
$2,280,500
​
$552,355
​
$168,619
​
$36,000
​
$3,899,691
​
$16,456,000
Maxine L. Mauricio
​
$5,855,000
​
$2,169,515
​
$1,837,406
​
$572,566
​
$100,478
​
$36,000
​
$—
​
$10,570,965
​
(a) Includes actual amounts payable in respect of the LTIP performance period January 1, 2013–December 31, 2015.
(a)
Includes actual amounts payable in respect of the LTIP performance period January 1, 2020 — December 31, 2022.
-39-51
​
DIRECTOR COMPENSATION
The following Table sets forth certain information with respect to the compensation ofpaid to our non-employee directors forduring fiscal year 2015.2022. Mr. Guzzi, our Chairman, President and Chief Executive Officer, received no additional compensation for serving on the Board.
Director Compensation for Fiscal Year 20152022
Name
​​
Fees Earned
or Paid
in Cash
($)(a)
​​
Stock
Awards
($)(j)
​​
Total
($)
John W. Altmeyer
​​
$122,500(b)
​​
$170,000
​​
$292,500
Ronald L. Johnson
​​
$115,000(c)
​​
$170,000
​​
$285,000
David H. Laidley
​​
$126,000(d)
​​
$170,000
​​
$296,000
Carol P. Lowe
​​
$117,000(e)
​​
$170,000
​​
$287,000
M. Kevin McEvoy
​​
$158,000(f)
​​
$170,000
​​
$328,000
William P. Reid
​​
$110,000
​​
$170,000
​​
$280,000
Steven B. Schwarzwaelder
​​
$116,000(g)
​​
$170,000
​​
$286,000
Robin Walker-Lee
​​
$120,000(h)
​​
$170,000
​​
$290,000
Rebecca A. Weyenberg
​​
$—(i)
​​
$85,000
​​
$85,000
​
Name​​
Fees Earned
or Paid
in Cash
($)(a)
​​
Stock
Awards
($)(k)
​​Total
($)		​
John W. Altmeyer​​​$182,500(b)​​​​$180,000​​​​$362,500​​
Stephen W. Bershad​​​$260,000(c)​​​​$180,000​​​​$440,000​​
David A.B. Brown​​​$190,000(d)​​​​$180,000​​​​$370,000​​
Larry J. Bump​​​$185,000(e)​​​​$180,000​​​​$365,000​​
Richard F. Hamm, Jr.​​​$195,000(f)​​​​$180,000​​​​$375,000​​
David H. Laidley​​​$190,000(g)​​​​$180,000​​​​$370,000​​
Frank T. MacInnis​​​$180,000(h)​​​​$180,000​​​​$360,000​​
Jerry E. Ryan​​​$190,000(i)​​​​$180,000​​​​$370,000​​
Steven B. Schwarzwaelder​​​$30,000(a)​​​​$135,000​​​​$165,000​​
Michael T. Yonker​​​$190,000(j)​​​​$180,000​​​​$370,000​​
​
(a)
Each non-employee director generally received in 2015 an annual retainer of  $180,000 in cash and under our Director Award Program $180,000 in restricted stock units in respect of which Common Stock of the Company will be issued as discussed below, except for Mr. Schwarzwaelder who was elected to our Board of Directors on October 29, 2015 and Mr. Altmeyer who elected to receive 50% of his annual cash retainer in additional restricted stock units, the value of which are included in this column. For 2015, upon his election to the Board, Mr. Schwarzwaelder received a cash retainer of  $30,000 and under our Director Award Program an award of 2,831 in restricted stock units in respect of which Common Stock of the Company will be issued.
​
(b)
For service on the Audit Committee, Mr. Altmeyer received an additional annual fee of  $2,500. Mr. Altmeyer elected to receive 50% of his annual cash retainer in restricted stock units, the value of which is included in the $182,500 figure.
​
(c)
For serving as a member of the Audit Committee, Mr. Bershad received an additional annual fee of  $5,000. For serving as Chairman of the Board for 2015 Mr. Bershad was entitled to a fee at the rate of  $75,000 per annum by reason of his election as Chairman, but in lieu thereof, he elected to receive 1,562 stock units as described below. This $75,000 is included in the $260,000 figure.
​
(d)
For serving as Chairman of the Audit Committee, Mr. Brown received an additional annual fee of  $10,000.
​
(e)
For serving as a member of the Compensation Committee, Mr. Bump received an additional annual fee of  $5,000.
​
(f)
For serving as a member of the Audit Committee, Mr. Hamm received an additional annual fee of  $5,000, for serving as a member of the Compensation Committee, he received an additional annual fee of  $5,000, and for serving as Chairman of the Corporate Governance Committee, he received an additional annual fee of  $5,000.
​
(g)
For serving as a member of the Audit Committee, Mr. Laidley received an additional annual fee of  $5,000 and for serving as a member of the Compensation Committee, he received an additional annual fee of  $5,000.
​
(h)
Mr. MacInnis retired from the Board on October 28, 2015.
​
(i)
For serving as Chairman of the Risk Oversight Committee which was dissolved in December 2015, Mr. Ryan received an additional annual fee of  $5,000 and for serving as a member of the Compensation Committee he received an additional annual fee of  $5,000.
​
(j)
For serving as Chairman of the Compensation Committee, Mr. Yonker received an annual fee of  $10,000.
​
(k)
The stock awards represent an aggregate grant date fair value computed in accordance with FASB ASC Topic 718. In 2015, each of our non-employee directors, other than Mr. Schwarzwaelder, received an award in June 2015 consisting of 3,750 stock units in respect of which an equal number of shares of our Common Stock will be issued with an aggregate grant date for fair value of  $180,000. As indicated above, Mr. Schwarzwaelder was awarded 2,831 restricted stock units on October 29, 2015 with an aggregate grant date fair value of  $135,000 upon his election as a Director pursuant to the Company’s Director Award Program. In addition, because Mr. Altmeyer elected to receive only $90,000 as his cash retainer for the 12 month period commencing June 2015, in accordance with the director’s compensation arrangement for 2015, he received an additional stock award consisting of 1,875 stock units in respect of which an equal number of shares of our Common Stock
​
​
-40-
​
will be issued with an aggregate grant date fair value of  $90,000; this $90,000 fair value amount is not included in the Stock Awards Column as such $90,000 is included in the Column entitled Fees Earned or Paid in Cash. In addition, by reason of his serving as Chairman of the Board, Mr. Bershad elected to receive an additional stock award consisting of 1,562 stock units in respect of which an equal number of shares of our Common Stock will be issued with an aggregate grant date fair value of $75,000 in lieu of  $75,000 in cash he could have received as a fee for serving as our Chairman. This fair value amount is not included in the Stock Awards Column as such $75,000 is included in the Column entitled Fees Earned or Paid in Cash.
(a)
Includes an annual cash retainer of $110,000, payable quarterly, under our Director Award Program for each non-employee director other than Mr. Altmeyer and Ms. Lowe, each of whom elected to receive 50% of the annual cash retainer in additional restricted stock units, the value of which are included in this column.
(b)
For serving as Chairperson of the Compensation Committee, Mr. Altmeyer received an additional fee of $12,500.
(c)
For serving as a member of the Corporate Governance Committee, Mr. Johnson received an additional fee of $5,000.
(d)
For serving as Chairperson of the Audit Committee, Mr. Laidley received an additional fee of $16,000.
(e)
For serving as a member of the Audit Committee, Ms. Lowe received an additional fee of $7,000.
(f)
For serving as Lead Director, Mr. McEvoy received an additional fee of $30,000. For serving as a member of the Compensation Committee, Mr. McEvoy received an additional fee of $6,000. For serving as a member of the Audit Committee, Mr. McEvoy received an additional fee of $7,000. For serving as a member of the Corporate Governance Committee, Mr. McEvoy received an additional fee of $5,000.
(g)
For serving as a member of the Compensation Committee, Mr. Schwarzwaelder received an additional annual fee of $6,000.
(h)
For serving as Chairperson of the Corporate Governance Committee, Ms. Walker-Lee received an additional annual fee of $10,000.
(i)
Ms. Weyenberg joined our Board on December 14, 2022 and did not receive any cash compensation for serving as a director in 2022.
(j)
The stock awards represent an aggregate grant date fair value computed in accordance with FASB ASC Topic 718. Upon their re-election to the Board, each of our non-employee directors (other than Ms. Weyenberg) received an award on June 2, 2022 consisting of 1,579 restricted stock units in respect of which an equal number of shares of our Common Stock will be issued with an aggregate grant date fair value of $170,000. In addition, because Mr. Altmeyer and Ms. Lowe elected to receive only $55,000 of the cash retainer for the 12-month period commencing June 2, 2022, in accordance with the directors’ compensation arrangement for 2022, each received an additional stock award consisting of 511 restricted stock units in respect of which an equal number of shares of our Common Stock will be issued with an aggregate grant date fair value of $55,000; this $55,000 fair value amount is not included in the Stock Awards column as such $55,000 is included in the column entitled Fees Earned or Paid in Cash. Upon her election to the Board on December 14, 2022, Ms. Weyenberg received 576 restricted stock units in respect of which an equal number of shares of our Common Stock will be issued with an aggregate grant date fair value of $85,000; this $85,000 fair value amount is included in the Stock Awards column.
As of December 31, 2015 certain of our non-employee directors held outstanding options to acquire the number of shares of our Common Stock following their respective names: Stephen W. Bershad, 85,851 shares; David A.B. Brown, 5,851 shares; Larry J. Bump, 40,000 shares; David H. Laidley, 50,000 shares; Jerry E. Ryan, 40,000 shares; and Michael T. Yonker, 60,000 shares. John W. Altmeyer, Richard F. Hamm, Jr., Frank T. MacInnis and Steven B. Schwarzwaelder did not hold any options as of December 31, 2015. In addition, as of December 31, 2015,2022, our non-employee directors held awards of restricted stock units entitling them to the number of shares of our Common Stock following their respective names: John W. Altmeyer 9,967- 14,455 shares; Stephen W. Bershad, 36,685 shares; David A.B. Brown, 3,762 shares; Larry J. Bump, 3,762 shares; Richard F. Hamm, Jr., 3,762Ronald L. Johnson - 3,368 shares; David H. Laidley 16,774- 5,677 shares; Jerry E. Ryan, 3,762Carol P. Lowe - 10,879 shares; M. Kevin McEvoy  - 1,581 shares; William P. Reid - 10,296 shares; Steven B. Schwarzwaelder 2,831- 1,581 shares; Robin Walker-Lee - 7,952 shares; and Michael T. Yonker, 31,574Rebecca A. Weyenberg - 576 shares.
Under the terms of our Director Award Program, as amended, we provide an annual cash retainer to each non-employee director of $180,000$110,000, payable quarter annuallyquarterly, and an annual grant to each such director of a number of restricted stock units immediately following his or her election to the Board at our annual meeting of stockholders, determined by dividing $180,000$170,000 by the fair market value of a share of our Common Stock on the grant date, which restricted stock units entitle him or her to receive an equal number of our shares of Common Stock on a date which is the first, second, third, fourth or fifth anniversary of the grant date as he or she selects. In the alternative, aA director may elect to forego one-half of his or her annual cash retainer and instead receive additional restricted stock units on the same terms as the grant of restricted stock units referred to in the preceding sentence. In addition, pursuantWe believe these equity grants serve to further align our directors’ interests with the termsinterests of our Director Award Program, as amended, following his election to the Board on October 29, 2015, Mr. Schwarzwaelder was awarded a number of stock units (2,831 stock units) determined by dividing $135,000 by the fair market value of a share of our Common Stock on the date of his election. In accordance with the Director Award Program he elected to receive an equal number of shares issuable in respect of those stock units on the first anniversary of the grant date.stockholders. In December 2014, we amended the Director Award
52
Program to provide that a director elected to the Board for the first time at other than at an annual meeting of stockholders shall receive an award of restricted stock units with a value equal to the cash retainer payable to him or her from the date of his or her election until the next annual meeting of stockholders and not, as had been provided prior to the amendment, a number of restricted stock units with a value equal to the annual cash retainer. For 2015, the Chairmanperiod prior from June 10, 2021 to June 2, 2022, the Chairpersons of the committees received the following annual fee: Audit Committee - $12,000; Corporate Governance Committee - $7,000; and Compensation Committee - $10,000. In addition, during such period, the members of each committee received the following annual fee: Audit Committee - $7,000; Corporate Governance Committee - $5,000; and Compensation Committee - $6,000. Effective after June 2, 2022, the fees for the Chairpersons of the Board received ancommittees were increased to the following amounts, as described further below: Audit Committee - $20,000; Corporate Governance Committee - $13,000 and Compensation Committee - $15,000. No changes were made to the annual fee for the members of $10,000, the Chairman of the Governance Committee of the Board received an annual fee of  $5,000, the Chairman Risk Oversight Committee of the Board received an annual fee of  $5,000, and the Chairman of the Compensation Committee of the Board received an annual fee of  $10,000. Each member of the Audit Committee receives an annual fee of  $5,000 and each member of the Compensation Committee an annual fee of  $5,000 per annum. In December 2015, the Board dissolved the Risk Oversight Committee and transferred its principal responsibilities to the Audit Committee.such committee.
Mr. Stephen W. Bershad,M. Kevin McEvoy, our Chairman of the Board, isLead Director, was entitled to an annual fee of $75,000$30,000, payable quarterly, for serving as such.
The Corporate Governance Committee annually reviews compensation and other benefits for the Company’s non-employee directors. In 2022, the committee engaged Mercer to assess the competitiveness of the current compensation package for non-employee directors. Mercer compared the Company’s current program against (i) directors serving at other large public companies with experiences and skill sets similar to those of our directors and (ii) directors serving at our Comparator Companies. Mercer concluded that the Company’s current annual director pay is competitively positioned in the upper quartile of the market versus both comparator sets but recommended that the fees for serving as a chairperson of a board committee be increased as described above. The Corporate Governance Committee used the same factors used by the Compensation Committee to determine that there was no conflict of interest in using Mercer for such analysis. Such factors are set forth under “Meetings and he electedCommittees of the Board of Directors — Role of Compensation Consultants” commencing on page 18.
The terms of our Amended and Restated 2010 Incentive Plan established a limit of $425,000 on the total amount of compensation that could be payable to take that feea non-employee Company director during a calendar year, whether in the form of an award of 1,562 restricted stock units entitling him to an equal number of shares of our Common Stock. The stock unit award had a fair value on the award date of  $75,000, and those units vest in periodic installments.cash or stock.
-41-53
​
AUDIT COMMITTEE REPORT
The following Audit Committee Report does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other Company filing under the Securities Act or the Exchange Act, except to the extent the Company specifically incorporates this report.
The following is the report of the Audit Committee with respect to the audited financial statements for the year ended December 31, 2015,2022, included in EMCOR’s annual report on Form 10-K for that year.
We have reviewed and discussed such audited financial statements with management and the Company’s independent auditors, Ernst & Young LLP.
We have discussed with Ernst & Young LLP the matters required to be discussed by Statement on Auditing Standards No. 61, as amended, (AICPA, Professional Standards, Vol. 1 AU Section 380), as adopted by theunder Public Company Accounting Oversight Board in Rule 3200T.(PCAOB) Auditing Standard No. 1301, “Communications with Audit Committees.”
We have received the written disclosures and letter from Ernst & Young LLP required by the Public Company Accounting Oversight Board Ethics and Independence Rule 3526, “Communications with Audit Committees Concerning Independence” and have discussed with Ernst & Young LLP that firm’s independence from EMCOR. The Audit Committee has also concluded that the provision to EMCOR by Ernst & Young LLP of audit and non-audit services, as described under the Table of Fees“Fees” table on page 4967 under “Ratification of Appointment of Independent Auditors” of itsEMCOR’s Proxy Statement for its Annual Meeting of Stockholders to be held June 2, 2016,8, 2023, is compatible with the independence of Ernst & Young LLP.
Based on the review and discussions referred to above in this report, we recommended to EMCOR’s Board that the audited financial statements be included in EMCOR’s annual report on Form 10-K for the year ended December 31, 20152022 for filing with the Securities and Exchange Commission.
​​
By:
​​
Audit Committee
​​
​​
​​
​​
By:
Audit Committee
​
David A.B. Brown, Chairman
John W. Altmeyer
Stephen W. Bershad
Richard F. Hamm, Jr.
David H. Laidley, Chairperson
​​
​​
Carol P. Lowe
​​
​​
M. Kevin McEvoy
-42-54
​
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
The following Table sets forth as of April 7, 201611, 2023 certain information regarding beneficial ownership of our Common Stock by each person or group known by us to be a beneficial owner of more than five percent of the outstanding shares of our Common Stock.
Name and Address of Beneficial Owner
​​
Amount and Nature of

Beneficial Ownership
​​
Percent

Owned
​
BlackRock, Inc.

55 East 52nd Street

New York, New York 10055
​​
6,509,610 6,105,141
shares(1)
​​​​10.7%​​
12.83%
The Vanguard Group

100 Vanguard Boulevard

Malvern, Pennsylvania 19355
​​
4,454,636 5,133,463
shares(2)
​​​​7.3%​​
10.79%
FMR
Kayne Anderson Rudnick Investment Management LLC
245 Summer Street
Boston, Massachusetts 02210
2000 Avenue of the Stars, Suite 1110
Los Angeles, CA 90067
​​
3,138,865 3,483,197
shares(3)
​​​​5.2%​​
7.32%
​
(1)
Based on an amended Schedule 13G/A filed by BlackRock, Inc. with the Securities and Exchange Commission on January 26, 2023. The Schedule 13G/A discloses that BlackRock, Inc. is the beneficial owner of 6,105,141 shares of our Common Stock and has sole voting power of 5,938,109 of such shares and sole dispositive power of 6,105,141 of such shares. It also states that these amounts include holdings of BlackRock Fund Advisors, which it indicates beneficially owns 5% or more of the outstanding shares of our Common Stock.
(2)
Based on a Schedule 13G/A filed by The Vanguard Group (“Vanguard”) with the Securities and Exchange Commission on February 9, 2023. The Schedule 13G/A discloses that Vanguard is the beneficial owner of 5,133,463 shares of our Common Stock and has sole voting power of zero of such shares, sole dispositive power of 5,009,614 of such shares, shared dispositive power of 123,849 of such shares and shared voting power of 80,408 of such shares.
(3)
Based on a Schedule 13G/A filed by Kayne Anderson Rudnick Investment Management LLC (“Kayne Anderson Rudnick”) with the Securities and Exchange Commission on February 14, 2023. The Schedule 13G discloses that Kayne Anderson Rudnick is the beneficial owner of 3,483,197 shares of our Common Stock and has sole voting power of 2,399,045 of such shares, sole dispositive power of 2,772,027 of such shares, shared dispositive power of 711,170 of such shares and shared voting power of 711,170 of such shares.
(1)
55
Based on a Schedule 13G Information Statement filed by BlackRock, Inc. The Schedule 13G discloses that BlackRock, Inc. is the beneficial owner of 6,509,610 shares and has sole voting power of 6,329,963 of such shares and sole dispositive power of 6,509,610 of such shares.
​
(2)
Based on a Schedule 13G Information Statement filed by The Vanguard Group (“Vanguard”). The Schedule 13G discloses that Vanguard is the beneficial owner of 4,454,636 shares and has sole voting power of 79,590 of such shares, sole dispositive power of 4,375,346 of such shares, shared dispositive power of 79,290 of such shares and shared voting power of 3,500 of such shares. It also states that Vanguard Fiduciary Trust Company is the beneficial owner of 75,790 of such shares as a result of it serving as investment manager of collective trust accounts and that Vanguard Investments Australia, Ltd. is the beneficial owner of 7,300 of such shares as a result of it serving as investment manager of Australian investment offerings.
​
(3)
Based on a Schedule 13G Information Statement filed by FMR LLC and Abigail P. Johnson (collectively, the “Reporting Persons”). The Schedule 13G discloses that the Reporting Persons are the beneficial owners of 3,138,865 shares and have sole power to vote or to direct the vote of 514,765 of such shares and sole power to dispose or to direct the disposal of 3,138,865 of such shares.
​
​
-43-
​
SECURITY OWNERSHIP OF MANAGEMENT
The following Table sets forth as of April 7, 2016,11, 2023, certain information regarding the beneficial ownership of our Common Stock by each of our directors and director nominees (including our Chief Executive Officer), and each of our other named executive officers and all our directors and named executive officers as a group. Except as otherwise noted, to our knowledge, each of the persons listed below has sole voting power and investment power with respect to the shares listed next to hishis/her name.
Name of Beneficial Owner
​​
Amount and Nature of
Beneficial Ownership(1)
​​
Percent
John W. Altmeyer
​​
35,658(2)
​​
*
Anthony J. Guzzi
​​
268,655(3)(4)
​​
*
Ronald L. Johnson
​​
3,370(2)
​​
*
David H. Laidley(5)
​​
75,071(2)
​​
*
Carol P. Lowe
​​
16,750(2)
​​
*
M. Kevin McEvoy
​​
12,214(2)
​​
*
William P. Reid
​​
10,304(2)
​​
*
Steven B. Schwarzwaelder
​​
19,662(2)
​​
*
Robin Walker-Lee
​​
9,325(2)
​​
*
Rebecca A. Weyenberg
​​
576(2)
​​
*
Mark A. Pompa
​​
83,758(3)
​​
*
R. Kevin Matz
​​
205,157(3)
​​
*
Maxine L. Mauricio
​​
24,378(3)
​​
*
All current directors and executive officers as a group (13 persons)
​​
764,878
​​
1.60%
Name*
Represents less than 1%.
(1)
The information contained in the Table reflects “beneficial ownership” as defined in Rule 13d-3 of Beneficial Ownerthe Securities Exchange Act of 1934, as amended.
​​(2)
Amount and NatureIncludes for each director the following number of
Beneficial Ownership(1)
​​Percent​
shares issuable in respect of restricted stock units on certain dates as described under “Director Compensation” commencing on page 52: John W. Altmeyer​​​​9,983(2)​​​​​*​​
Stephen W. Bershad​​​​200,365(2)​​​​​*​​
David A.B. Brown​​​​18,296(2)​​​​​*​​
Larry J. Bump​​​​104,083(2)​​​​​*​​
Anthony J. Guzzi​​​​401,122(3)(4)​​​​​*​​
Richard F. Hamm, Jr.​​​​49,245(2)​​​​​*​​
 — 14,467 shares; Ronald L. Johnson — 3,370 shares; David H. Laidley​​​​87,117(2)​​​​​*​​
Jerry E. Ryan​​​​75,578(2)​​​​​*​​
 — 5,681 shares; Carol P. Lowe  — 10,888 shares; M. Kevin McEvoy —  1,582 shares; William P. Reid —  10,304 shares; Steven B. Schwarzwaelder​​​​2,835(2)​​​​​*​​
Michael T. Yonker​​​​101,206(2)​​​​​*​​
Mark — 1,582 shares; Robin Walker-Lee — 7,958 shares; and Rebecca A. Pompa​​​​86,973(3)​​​​​*​​
Sheldon I. Cammaker​​​​109,857(3)​​​​​*​​
R. Kevin Matz​​​​214,461(3)​​​​​*​​
All directors and executive officers as a group​​​​1,461,121(5)​​​​​2.4%​​Weyenberg  — 576 shares.
​
(3)
Includes in the case of Mr. Guzzi, 65,360 shares; in the case of Mr. Pompa, 22,376 shares; in the case of Mr. Matz, 15,175 shares, and in the case of Ms. Mauricio, 13,993 shares, which shares are to be issued in respect of restricted stock units, provided such holder remains an employee of the Company until specified dates as more fully described in the narrative immediately following the Outstanding Equity Awards at 2022 Fiscal Year-End Table commencing on page 41.
(4)
Excludes 5,790 shares owned by a trust for the benefit of Mr. Guzzi’s children, of which his wife is the trustee.
(5)
Mr. Laidley is not standing for re-election due to the Director Retirement Policy described on page 7 under “Director Retirement Policy.”
*
56
Represents less than 1%.
​
(1)
The information contained in the Table reflects “beneficial ownership” as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended.
​
(2)
Includes in the case of Mr. Bershad, 85,851 shares; in the case of Mr. Brown, 5,851 shares; in the case of Mr. Bump, 40,000 shares; in the case of Mr. Laidley, 40,000 shares; in the case of Mr. Ryan, 40,000 shares; and in the case of Mr. Yonker, 60,000 shares; which shares may be acquired upon the exercise of presently exercisable options or options exercisable within 60 days of the date hereof and granted pursuant to our stock options plans and programs for non-employee directors. Also included in the case of Mr. Altmeyer, 9,983 shares issuable in respect of stock units, in the case of each of Messrs. Brown, Bump, Hamm, and Ryan, 3,768 shares, in the case of Mr. Bershad, 36,744 shares, in the case of Mr. Laidley, 16,802 shares, in the case of Mr. Schwarzwaelder, 2,835 shares, and in the case of Mr. Yonker, 31,626 shares, issuable in respect of stock units, in each case, on certain dates, as described under “Director Compensation” commencing on page 40.
​
(3)
Includes in the case of Mr. Guzzi, 171,137 shares; in the case of Mr. Pompa, 34,283 shares; in the case of Mr. Cammaker, 22,391 shares; and in the case of Mr. Matz, 27,202 shares, which shares are to be issued in respect of stock units, provided such holder remains an employee of the Company until specified dates as more fully described in the narrative immediately following the Outstanding Equity Awards at 2015 Fiscal Year-End Table commencing on page 28.
​
(4)
Does not include 5,790 shares owned by a trust for the benefit of Mr. Guzzi’s wife and children, of which his wife and brother are trustees.
​
(5)
Includes 271,702 shares that may be acquired upon the exercise of presently exercisable options or options exercisable within 60 days of the date hereof granted pursuant to our stock options plans and programs and 368,075 shares issuable in respect of stock units.
​
​
-44-
​
PROPOSAL NO. 1—1 —  ELECTION OF DIRECTORS
At our Annual Meeting, tennine directors are to be elected by the holders of our Common Stock to serve until our next annual meeting of stockholders and until their successors have been duly elected and qualified. To be elected as a director at the Annual Meeting, each nominee must receive a majority of the votes cast, which means that the number of votes cast “for” the nominee must exceed the number of votes cast “against” or “withheld” from the nominee.
Information concerning the nominees for election at our Annual Meeting is set forth below. Each nominee other than Mr. M. Kevin McEvoy, is presently one of our directors. Mr. Laidley is not standing for re-election due to the Director Retirement Policy described on page 7 under “Director Retirement Policy.”
While the Board has no reason to believe that any of those named as a nominee for election to the Board will not be available as a candidate, should such a situation arise, the proxy may be voted for the election of other nominees in the discretion of the persons acting pursuant to the proxy. Mr. Schwarzwaelder was elected to our Board to fill the vacancy caused by the retirement of Mr. MacInnis from the Board. Mr. McEvoy was nominated by the Board at a meeting of our directors in March 2016 as Mr. Bump is not standing for re-election to the Board. Each of Messrs. Schwarzwaelder and McEvoy were nominated for election to the Board following the Corporate Governance Committee’s retention of a third party search firm to which the Company paid a fee to recommend potential candidates for election to the Board and assist the Committee in its evaluation of such potential candidates and which firm recommended Messrs. Schwarzwaelder and McEvoy as candidates for election to the Board. The Corporate Governance Committee evaluated and recommended each nominee to our Board in accordance with our Corporate Governance Guidelines and the Committee’s Charter. Each of the nominees has consented to be named in this Proxy Statement as a nominee and to serve if elected.
John W. Altmeyer, Age 56.64. Mr. Altmeyer is the Chief Executive Officer of GAF, the largest roofing and waterproofing manufacturer in North America. He has held this position since January 2023, and previously served as Executive Chairman of GAF Commercial Roofing from February 2021 to January 2023. Prior to joining GAF, Mr. Altmeyer served as the President and Chief Executive Officer of Carlisle Construction Materials, a division of Carlisle Companies Incorporated, a diversified manufacturing company.from 1997 to September 2018. Carlisle Construction Materials which has been led by Mr. Altmeyer since 1997, is principally engaged in the manufacture and sale of rubber and thermoplastic roofing systems and other products with roofing applications for commercial and residential buildings. Mr. Altmeyer was electeda member of the Board of Directors of Berkshire Hills Bancorp from 2012 to our Board on October 23, 2014.2015, and Tecta America from February 2019 to February 2021. He has been a member of the Board of Directors of Berkshire Hills BancorpUtz Brands, Inc. since 2012. AsJuly 2020. Utz Brands, Inc. is a manufacturer of a diverse portfolio of salty snacks. Mr. Altmeyer was elected to our Board on October 23, 2014. Having served as a senior executive in the construction materialmaterials industry for over 20 years, Mr. Altmeyer has an in depthin-depth knowledge of industries related to the Company’s businesses.
Stephen W. Bershad,Anthony J. Guzzi, Age 74.58. Mr. Bershad is a private investorGuzzi was elected to our Board on December 15, 2009 and has servedwas elected as our Chairman of the Board sinceon June 13, 2013. From May 31, 2012 to June 13, 2013 Mr. Bershad served as our Lead Director. In addition, since July 2010, he also has been Chairman of the Board of Directors of GSI Group, Inc., a supplier of laser based solutions and precision motion control systems to the global medical, electronics, and industrial markets. Until September 2009, and for more than five years prior thereto, he had been Chairman of the Board of Directors and Chief Executive Officer of Axsys Technologies, Inc. From 1986 to September 2009 Mr. Bershad was also a member of the Board of Directors of Axsys. He has been one of our directors since December 15, 1994. As a senior executive with Lehman Brothers for more than 15 years, the Chief Executive Officer of Axsys for more than 20 years, and the Chairman of GSI for nearly five years, Mr. Bershad has an invaluable background in investment banking, finance, and business.
David A.B. Brown, Age 72. Mr. Brown has been Chairman of the Board of Directors of Layne Christensen Company since June 2005 and serves on the Compensation Committee of that company. From June 25, 2014 to January 1, 2015, Mr. Brown also served as President and Chief Executive Officer of Layne Christensen. Layne Christensen provides drilling services and related products and services in the principal markets of water resources, mineral exploration, and energy. Mr. Brown had also been the Chairman of the Board of Directors of Pride International, Inc., a leading provider of offshore contract drilling and related services to oil and natural gas companies worldwide, from May 2005 to May 2011, when, pursuant to an agreement of merger, it became a wholly owned subsidiary of Ensco plc. Mr. Brown served as a director of Ensco from May 2011 to May 2014. For more than five years prior to May 2005, Mr. Brown was president of The Windsor Group, a management consulting firm of which he was a co-founder. From 2001 to 2006, Mr. Brown was a member of the Board of Directors of Mission Resources, Inc., from 2001 to 2007, a director of NS Group, Inc., and from 2006 to 2007, a director of Petrohawk Energy Corp. He has been one of our directors since December 15, 1994. Mr. Brown, who also is a chartered accountant, has a broad
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breadth of knowledge regarding finance and varied businesses gathered over many years as a business consultant, particularly in the oil and gas sector in which the Company has many interests, and as a director of several public companies, including chairman of the board of three public companies.
Anthony J. Guzzi, Age 52.2018. Mr. Guzzi has been our President since October 2004, when he joined the Company, and since January 3, 2011, our Chief Executive Officer. He served as our Chief Operating Officer from October 2004 until January 3, 2011. From August 2001 until he joined the Company, Mr. Guzzi was President of the North American Distribution and Aftermarket Division of Carrier Corporation, a manufacturer and distributor of commercial and residential HVAC and refrigeration systems and equipment and a provider of aftermarket services and components of its own products and those of other manufacturers in both the HVAC and refrigeration industry. Mr. Guzzi is also Lead Directorlead director of Hubbell International, Inc. Mr. Guzzi was elected to the Board on December 15, 2009. Mr. Guzzi has an extensive knowledge of the Company’sour business, and, having served as a senior executive officer of Carrier Corporation,our President since 2004 and our Chief Executive Officer since 2011, and the leadership, management and strategic vision that he has extensive knowledgeprovided and continues to provide to the Company are invaluable.
Ronald L. Johnson, Age 68. Since 2014, Major General Johnson (Retired) has served as Professor of the mechanical services business which accounts for a significant portionPractice at the School of Industrial and Systems Engineering at the Georgia Institute of Technology in Atlanta, Georgia (“GT”) teaching courses in design, probability and statistics, and career development. He also holds the positions of Faculty Leadership Fellow and Faculty Diversity and Inclusion Fellow and serves on the Faculty Senate at GT. From 2013 to 2015, General Johnson served as the Managing Director and CEO of the Company’s revenues and profits.
Richard F. Hamm, Jr., Age 56. Since January 1, 2015, Mr. Hamm has beenTennenbaum Institute of Enterprise Transformation at GT, a multidisciplinary center uniting experts in various fields to create industry-shaping business models for enterprise transformation. From 2008 to 2012, General Johnson was a Senior Vice President, Chief Financial Officer, and General Counsel of Lakewood-Amedex Inc., a drug discovery and development firm. Mr. Hamm has also been the Managing Member of Siesta Properties LLC, a real estate development company since July 2011. He had been an Executive Vice President of Dendreon Corporation, a biotechnology company developing targeted therapiesReferee Operations for the treatmentNational Basketball Association (“NBA”) charged with ensuring the integrity and high quality of cancer, from December 2010the NBA officiating program. From 1976 to June 2011 as well as its2008, General CounselJohnson served in the U.S. Army attaining the rank of Major General. In his last post, he was the Deputy Commanding General and Secretary from November 2004 to June 2011.Deputy Chief of Engineers for the Army with oversight of the management of 70,000 engineering soldiers and 181 Army installations worldwide, including IT security systems. He also served as a member of the Defense Advisory Committee on Women in the Service. During his service in the Army, General Johnson received many awards and three Distinguished Service Medals. Currently, General Johnson serves as a National Trustee of the Boys and Girls Club of America (2014 to present), a member of the Executive Advisory Council for Mission Readiness (2011 to present), Trustee Emeritus of the Board of Directors Foundation at GT (2007 to present), Trustee of the U.S. Army War College (2018 to present) and Trustee of the West Point Association of Graduates (2021 to present). General Johnson was elected to our Board on February 23, 2021. With his distinguished service and leadership in our military,
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General Johnson enhances the strong leadership and service ethos at our Company which aligns with our EMCOR Values. His diversity and inclusion background, both in the Army and at GT, provides expertise for our diversity and inclusion initiatives. General Johnson’s background in facilities engineering, construction and maintenance and his knowledge of the government sector, are relevant to each of our Company’s segments and his cybersecurity expertise gained during his service in the military will provide leadership to the Company’s cybersecurity programs.
Carol P. Lowe, Age 57. Between November 2017 and June 2021, Ms. Lowe served as Executive Vice President and Chief Financial Officer of FLIR Systems, Inc. (“FLIR”). FLIR is a world-leading designer, marketer and manufacturer of innovative sensor systems. From June 2012 through October 2017, she served as Senior Vice President and Chief Financial Officer of DendreonSealed Air Corporation, Inc. (“Sealed Air”), a global manufacturing company operating in over 62 countries with a wide portfolio of brands. Prior to joining Sealed Air, Ms. Lowe served Carlisle Companies Incorporated (“Carlisle”) from November 2004January 2002 through June 2012 in a variety of executive roles including President of Carlisle Food Service Products, President of Trail King Industries, Inc. and Vice President and Chief Financial Officer of Carlisle. During 2021, Ms. Lowe joined the Board of Directors of Arrow Electronics, Inc., a developer of technology solutions for leading technology manufacturers and service providers (“Arrow”), and Novolex (which is not a public company), an industry leader in packaging choice, innovation and sustainability. Ms. Lowe currently serves as a member of the Audit Committee of the Board of Directors of each of Arrow and Novolex. From October 2007 to December 2010. From April 2002 until November 2004, he was Deputy General Counsel and a Vice President of Medtronic, Inc., a medical technology company. From August 2000 to September 2009, Mr. Hamm was2015, Ms. Lowe also served as a member of the Board of Directors of Axsys TechnologiesCytec Industries, Inc. Mr. Hamm has been one of our directors since June 19, 1998. As a corporate executive, including serving as Chief Financial Officer of Dendreon for a period of time, and a practicing attorney for over 30 years, with a master’s degree in business administration, Mr. Hamm has a broad knowledge of many industries with proven business acumen and a strong background in finance.
David H. Laidley, Age 69. Mr. Laidley is Chairman Emeritus of Deloitte LLP (Canada), a professional services firm providing audit, tax, financial advisory and consulting services, where heshe was a partner from 1975 until his retirement in 2007 specializing in taxmember of its Audit Committee and audit services. He served as Chairman of Deloitte LLP (Canada) from 2000 to 2006. Mr. Laidley has been a director of AIMIA Inc. since 2009, a director of Input Capital Corp. since 2013,the Safety, Health, Environment and Chairman of the Board of Directors of CT Real Estate Investment Trust since 2013, the shares or units of each of which companies are traded on the Toronto Stock Exchange. Mr. Laidley had also been a director of the Bank of Canada from 2007 to 2013 and a director of Biovail Corporation from 2008 to 2010. Mr. LaidleyTechnology Committee. Ms. Lowe was first elected to our Board on December 15, 2008. With more than 40 years ofJune 1, 2017. As a CPA and Chief Financial Officer with Fortune 500 public company experience, Ms. Lowe brings to the Board invaluable financial and accounting experience dealing with businesses in many industries, Mr. Laidley’s background providesexpertise as well as a strong financial foundation for Board deliberationsbackground in operations management and a keen knowledge of many industry sectors.corporate governance. At FLIR, Ms. Lowe oversaw the company’s cybersecurity initiatives; therefore, she also provides cybersecurity expertise to the Board.
M. Kevin McEvoy, Age 65.72. Mr. McEvoy iswas the Chief Executive Officer of Oceaneering International, Inc., a position he has held since 2011. (“Oceaneering”) from 2011 to May 2017. Oceaneering is a global oilfield provider of engineered services and products primarily to the offshore oil and gas industry. ItOceaneering also serves the defense, entertainment and aerospace industries.industries, and its shares are traded on the New York Stock Exchange. Mr. McEvoy first joined Oceaneering in 1984 and has held various operational and management positions at Oceaneering, including the positions of President and Chief Executive Officer from 2011 through 2015, and Executive Vice President and Chief OperationsOperating Officer from 2010 through 2011 and Executive Vice President2011. Prior to that, he served in 2006.numerous operations management roles in each of the Oceaneering’s business segments, including three foreign postings. He has beenalso served on its Board of Directors since 2011. Mr. McEvoy is a directorVietnam era veteran, having served as an officer in the U.S. Navy from 1972 to 1976, primarily engaged in diving, salvage and submarine rescue activities. Mr. McEvoy was elected to our Board on June 2, 2016. Mr. McEvoy also holds a CERT Certificate in Cybersecurity Oversight from the Carnegie Mellon University Software Engineering Institute and the National Association of Oceaneering since May 2011.Corporate Directors. Our Board elected him to the position of independent Lead Director on June 1, 2018. Mr. McEvoy has a broad knowledge of the engineering, construction, and oil and gas, industries in which the Company has extensive interests.and U.S. government services industries. He also brings to the Board a wealth of international experience, andincluding in the United Kingdom, where the Company has meaningful operations. Having served as the Chief Executive Officer of a publicly traded company will offerfocused on operations and services, he offers the Company valuable perspective and guidance in the areas of finance, governance, operations, construction, government contracting, cybersecurity and other essential disciplines.
Jerry E. Ryan,William P. Reid, Age 73. Prior to his retirement, Mr. Ryan, who is retired, served, from January 2000 through December 2002, as a consultant to Fintube Technologies, Inc., a manufacturer of large heat recovery steam generators utilized in the electrical power generating industry and heavy welded finned tubes used in a variety of heat recovery operations and a subsidiary of Lone Star Technologies, Inc. Mr. RyanReid served as Chairman of the
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Board of Directors and Chief Executive Officer of the general partner of Fintube Limited Partnership from 1985 untilEMCOR Industrial Services, Inc. and Ohmstede Ltd. (“Ohmstede”). Mr. Reid first joined Ohmstede in 1999 as its sale to Lone Star TechnologiesPresident and CEO. Ohmstede was acquired by EMCOR in January 2000. Mr. Ryan also served on the Boards of Directors of Lone Star Technologies from 2000 to 2007, AAON, Inc. from 2001 to 2007 and Global Power Equipment Group from 2002became the platform for EMCOR Industrial Services. Before joining Ohmstede, Mr. Reid spent over 20 years in the oil and gas industry, starting his career with Cameron Iron Works and becoming the President of NL Drilling Services, which provided directional drilling equipment and Measurement While Drilling (MWD) tools to 2008. He has beenthe worldwide oil and gas industry. Mr. Reid was elected to our Board on October 25, 2017. With his extensive knowledge of, and experience in, the oil, gas and petrochemical industries and his tenure as the President of a publicly traded company, Mr. Reid offers to the Company invaluable experience and insight with respect to one of our directors since December 15, 2007. As an entrepreneur for more than 40 years, Mr. Ryan has an extensive backgroundbusiness segments and guidance in businessthe areas of finance, mergers and manufacturing operationsacquisitions, and in-depth knowledge of the heat exchanger business in which the Company has a significant investment.strategy.
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Steven B. Schwarzwaelder,Age 61.68. Mr. Schwarzwaelder was a Director at McKinsey & Company a global management consulting firm,(“McKinsey”) and consulted largely with global industrial corporations during his 27 years with McKinseythe firm from August 1980 through March 2007. HeAs a Director, he also served as an elected member of McKinsey’s Shareholders’ Council from 2000 through 2006, an appointed member of McKinsey’sthe Managing Directors’ 5-person Advisory Committee and had oversight responsibility for McKinsey’s global functional practices (Strategy, Operations, Corporate Finance, Marketing & Sales, Organization, and Business Technology). Currently, Mr. Schwarzwaelder serves on the Board of Directors of MW Industries, Inc. From March 2011 through June 2019, Mr. Schwarzwaelder served on the Board of Trustees of Cardinal Logistics Holdings; from October 2011 through March 2014, Mr. Schwarzwaelderhe served on the Board of Directors of Dana CorporationCorporation; and from November 2011 to June 2016, he served on the Board of Directors of Nexeo Solutions. He was also a Senior Advisor to TeleTracking, a leading provider of operational systems to healthcare providers, from January 2013 through June 2022; to Centerbridge Capital and TPG from November 2013 through December 20142014; and to TPG from March 2011 through December 2015, respectively. He has been one ofJune 2016. Mr. Schwarzwaelder was elected to our directors sinceBoard on October 29, 2015. With over 27 years of experience at McKinsey and as a director of both public and private companies, Mr. Schwarzwaelder has a deep and extensive background in corporate governance, strategy, operations, mergers and acquisitions, sales and marketing, and large-scale performance improvement programs.
Michael T. Yonker,Robin Walker-Lee, Age 73. For more than nine years prior to his retirement in June 1998, Mr. Yonker was69. Currently retired, Ms. Walker-Lee served as Executive Vice President, General Counsel and Chief Executive OfficerSecretary of Portec, Inc.TRW Automotive Holdings (“TRW”), a diversified industrial products companylarge, global automotive supplier, from February 2010 to May 2015. Prior to joining TRW, Ms. Walker-Lee held a number of leadership positions at General Motors (“GM”), a multinational automotive manufacturing corporation, including Assistant General Counsel — Operations from 2008 to 2010, and Regional General Counsel and Vice President of Public Policy for GM Latin America, Africa and the Middle East from 2002 to 2008. Ms. Walker-Lee currently serves on the Board of Directors of Regal Rexnord Corporation (“Regal”), which resulted from the merger of Regal Beloit Corp. with operations in the construction equipment, materials handlingProcess and railroad products industries. Mr. YonkerMotion Control business of Rexnord Corp., where Ms. Walker-Lee served as a directorBoard member from 2015 to 2021. Regal is a global leader in the engineering and manufacturing of Woodward Governorelectric motors and controls, power generation and power transition products. She currently serves as the Chairperson of the Corporate Governance, Sustainability and Director Affairs Committee of Regal. Ms. Walker-Lee was elected to our Board on December 13, 2018. Ms. Walker-Lee provides the Company from 1996with significant international and operational expertise in the industrial sector where the Company has a significant and expanding presence. She also has extensive experience in compliance, regulatory matters, sustainability, mergers & acquisitions, and governance.
Rebecca Ann Weyenberg, Age 59. Ms. Weyenberg was elected to 2014 and served as a director of Modine Manufacturing Company from 1993 to 2012. Heour Board on December 14, 2022. She has been one of our directors since October 25, 2002. Having served as Chief ExecutiveFinancial Officer of PortecAstec Industries Inc. (“Astec”) since December 2019. Astec designs, engineers, manufactures, and markets equipment, materials and components used in infrastructure, aggregates and mining activities in the United States and internationally. From 2017 to 2019, she served as Vice President of Global Finance Operations for Welbilt, Inc., a senior executive officerleading global manufacturer of commercial foodservice equipment. Prior to her work with Welbilt, she served as Chief Financial Officer and directorAssistant General Manager for Berkeley Hall Club, a premier golf club in Bluffton, South Carolina, from 2015 to 2017. From 2010 to 2015, she served as Vice President, Global Processes, Standards and Shared Services of other companies, Mr. Yonker hasAGCO Corporation, a depthglobal leader in the design, manufacture and distribution of business experience.agricultural machinery, where she was also Vice President Finance, North American Region, from 2006 to 2010. As a Chief Financial Officer with public company experience, Ms. Weyenberg offers financial expertise, as well as a strong background in construction, manufacturing and distribution, to the Board.
RECOMMENDATION OF THE BOARD OF DIRECTORS
The Board of Directors recommends a vote “FOR” the election of each of the above nominees.
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PROPOSAL NO. 2—2 — NON-BINDING ADVISORY VOTE ON NAMED
EXECUTIVE OFFICER COMPENSATION
The following resolution gives our stockholders the opportunity to vote to approve or not approve, on a non-binding advisory basis, the compensation of our named executive officers. This vote is not intended to address any specific item of compensation, but rather the overall compensation of our named executive officers and our compensation philosophy, policies and practices, as disclosed in the “Compensation Discussion and Analysis,” executive compensation tables, and accompanying narrative disclosures in this Proxy Statement. We are providing this vote as required by Section 14A of the Securities Exchange Act of 1934, as amended.
As discussed previously in the Compensation Discussion and Analysis sectionSection beginning on page 13,22, the objectives of our compensation program for our named executive officers are to attract, retain, and motivate key executives with skills necessary to assure our long-term success. Broadly stated, the purpose of the key components of the program that are geared to both our short-term and long-term performance insofar as they relate to named executive officers are:
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to reward named executive officers’ expertise and experience;
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to reward named executive officers’ performance in a way that drives achievementstrongly links pay and performance and achieves our (1) short-term goals (an Annual Incentive Program based upon (a) the ratio of our short-termpositive operating cash flow to our operating income, and (b) diluted earnings per share from continuing operations) and (2) long-term goals by providing(a Long Term Incentive Plan comprised of an equity grant cliff-vesting after three years and a strong link between paycash component based upon a three-year diluted earnings per share measurement period); and performance; and
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to align named executive officers’ compensation with the interests of our stockholders by paying a meaningful portion of incentive awards in equity.
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Accordingly, we ask our stockholders to vote “FOR”“FOR” the following resolution at the Annual Meeting:
“RESOLVED, that the stockholders of EMCOR Group, Inc. (“EMCOR”) approve, on an advisory basis, the compensation of EMCOR’s named executive officers, as described in the “Compensation Discussion and Analysis,” executive compensation tables, and accompanying narrative disclosures in EMCOR’s proxy statement for the 20162023 Annual Meeting of Stockholders.”
While we intend to carefully consider the voting results of this proposal, the final vote is advisory in nature and therefore not binding on us, our Board of Directors or its Compensation and Personnel Committee. Our Board and its Compensation and Personnel Committee value the opinions of our stockholders and will consider the outcome of this vote when making future compensation decisions for our named executive officers. The Board expects to continue to hold an advisory vote on our named executive officers’ compensation annually, with the next vote to occur at the 2024 Annual Meeting of Stockholders.
RECOMMENDATION OF THE BOARD OF DIRECTORS
The Board of Directors recommends a vote “FOR” the adoption of the above resolution indicating approval of the compensation of our named executive officers.
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PROPOSAL NO. 3—3 — NON-BINDING ADVISORY VOTE ON THE FREQUENCY OF THE
STOCKHOLDER VOTE ON EXECUTIVE COMPENSATION
The following proposal gives our stockholders the opportunity to vote, on an advisory basis, on the frequency with which we include in our proxy statement an advisory vote, similar to Proposal No. 2 above, to approve or not approve the compensation of our named executive officers. By voting on this proposal, stockholders may indicate whether they prefer that we seek such an advisory vote every one, two, or three years. Currently, the Company’s practice has been to seek an advisory vote every year. Pursuant to Section 14A of the Securities Exchange Act of 1934, as amended, we are required to hold, at least once every six years, an advisory stockholder vote to determine the frequency of the advisory stockholder vote on executive compensation.
After careful consideration of this proposal, our Board of Directors determined that an advisory vote on executive compensation that occurs every 1 YEAR is the most appropriate alternative for our Company.
You may cast your vote on your preferred voting frequency by selecting the option of holding an advisory vote on executive compensation every “1 year,” “2 years” or “3 years,” or you may “ABSTAIN.” Your vote is not intended to approve or disapprove the recommendation of the Board of Directors. If a preference for a choice other than one year receives the most votes, our Board will take the voting results into consideration in determining how frequently we will present you with an advisory vote on executive compensation.
While we intend to carefully consider the voting results of this proposal, the final vote is advisory in nature and therefore not binding on us, our Board of Directors or its Compensation Committee. Our Board and its Compensation Committee value the opinions of all of our stockholders and will consider the outcome of this vote when making future decisions on the frequency with which we will hold an advisory vote on executive compensation.
RECOMMENDATION OF THE BOARD OF DIRECTORS
The Board of Directors recommends that an advisory vote on executive compensation be held every “1 YEAR.”
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PROPOSAL NO. 4 — APPROVAL OF AN AMENDMENT TO THE COMPANY’S RESTATED CERTIFICATE OF INCORPORATION REGARDING THE SIZE OF THE BOARD OF DIRECTORS
Background
On February 21, 2023, our Board of Directors unanimously adopted a resolution declaring it advisable to amend Article SIXTH of our Restated Certificate of Incorporation, as amended, which we refer to as our “Certificate of Incorporation,” subject to stockholder approval, to provide that the number of directors will be fixed from time to time by resolution of the majority of the directors then in office (the “Article SIXTH Amendment”).
Stockholders are being asked to vote in favor of the proposed Article SIXTH Amendment. If the Article SIXTH Amendment is approved, it will become effective upon the filing of such amendment to the Certificate of Incorporation with the Secretary of State of the State of Delaware.
Text of Proposed Article SIXTH Amendment
Currently, Article SIXTH of the Certificate of Incorporation reads as follows:
SIXTH: The Board of Directors of the Corporation shall consist of seven members.
Under the proposed amendment, Article SIXTH of the Certificate of Incorporation would read as follows:
SIXTH: The Board of Directors of the Corporation shall consist of the number of directors as fixed from time to time by resolution of a majority of the directors then in office.
Reasons for the Proposal and General Effect of the Article SIXTH Amendment
Our Board of Directors believes that it is in the best interest of the Company to amend the Certificate of Incorporation to eliminate a specific mandated number of directors and, instead, permit the directors to adjust the size of the Board based on its evaluation of the right size and composition in light of the then-current Company operating environment. The proposed amendment would provide the Board with flexibility to determine the optimal size of the Board depending on the expertise and experience the directors consider appropriate to support of the Company’s short-term and long-term strategies.
Not Conditioned on the Other Certificate Amendments
The Article SIXTH Amendment is separate from, and is not conditioned on, the approval of the Article NINTH Amendment or the Article TWELFTH Amendment. Your vote on the Article NINTH Amendment or the Article TWELFTH Amendment will not affect your vote on the Article SIXTH Amendment or vice versa. If the Article SIXTH Amendment receives the required vote but the Article NINTH Amendment and the Article TWELFTH Amendment do not, the Amendment to Restated Certificate of Incorporation that we will file with the Secretary of State of the State of Delaware will reflect only the Article SIXTH Amendment. If the Article SIXTH Amendment does not receive the required vote but one or both of the other proposed amendments to the Certificate of Incorporation receive adequate support, the Amendment to Restated Certificate of Incorporation will reflect only the proposed amendment or amendments that received the requisite vote of our stockholders.
RECOMMENDATION OF THE BOARD OF DIRECTORS
The Board of Directors recommends a vote “FOR” the adoption of the above resolution indicating approval of the amendment to our restated certificate of incorporation regarding the size of the Board of Directors.
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PROPOSAL NO. 5 – APPROVAL OF AN AMENDMENT TO THE COMPANY’S FIFTH AMENDED AND RESTATED CERTIFICATE OF INCORPORATION TO REFLECT DELAWARE LAW PROVISIONS ALLOWING OFFICER EXCULPATION
Background
The State of Delaware, which is the Company’s state of incorporation, recently enacted legislation that enables Delaware corporations to limit the liability of certain of their officers in limited circumstances. Prior to this legislation, Section 102(b)(7) of the Delaware General Corporation Law permitted Delaware corporations to exculpate directors from personal liability for monetary damages in certain circumstances, but the statute did not contemplate providing similar protection for officers. On February 21, 2023, our Board of Directors unanimously adopted a resolution declaring it advisable to amend Article NINTH of our Certificate of Incorporation, subject to stockholder approval, to add a provision exculpating certain of the Company’s officers from liability in specific circumstances, as permitted by Delaware law (the “Article NINTH Amendment”).
Text of Proposed Article NINTH Amendment
Currently, Article NINTH of the Certificate of Incorporation reads as follows:
NINTH: To the fullest extent that the General Corporation Law of the State of Delaware, as it exists on the date hereof or as it may hereafter be amended, permits the limitation or elimination of the liability of directors, no director of this Corporation shall be personally liable to this Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. Notwithstanding the foregoing, a director shall be liable to the extent provided by applicable law (1) for any breach of the directors' duty of loyalty to the Corporation or its stockholders, (2) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (3) under Section 174 of the General Corporation Law of the State of Delaware, or (4) for any transaction from which the director derived any improper personal benefit. Neither the amendment or repeal of this Article, nor the adoption of any provision of this Amended and Restated Certificate of Incorporation inconsistent with this Article shall adversely affect any right or protection of a director of the Corporation existing at the time of such amendment or repeal.
Under the proposed amendment, Article NINTH of the Certificate of Incorporation would read as follows:
NINTH: To the fullest extent that the General Corporation Law of the State of Delaware, as it exists on the date hereof or as it may hereafter be amended, permits the limitation or elimination of the liability of directors and officers, no director or officer of this Corporation shall be personally liable to this Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer. Notwithstanding the foregoing, a director or officer shall be liable to the extent provided by applicable law (1) for any breach of the director’s or officer’s duty of loyalty to the Corporation or its stockholders, (2) for acts or omissions of the director or officer not in good faith or which involve intentional misconduct or a knowing violation of law, (3) under Section 174 of the General Corporation Law of the State of Delaware with respect to directors, (4) for any transaction from which the director or officer derived any improper personal benefit, or (5) for any action by or in the right of the Corporation, in the case of officers only. Neither the amendment or repeal of this Article, nor the adoption of any provision of this Amended and Restated Certificate of Incorporation inconsistent with this Article shall adversely affect any right or protection of a director or officer of the Corporation existing at the time of such amendment or repeal.
Reasons for the Proposal and General Effect of the Article NINTH Amendment
Our Board of Directors believes that amending the Certificate of Incorporation to add the authorized liability protection for certain officers of the Company, consistent with the protection in the Certificate of Incorporation currently afforded directors of the Company, is in the best interests of the Company and our stockholders. Aligning the protections available to our directors and those of our officers to which Article NINTH Amendment applies will disallow plaintiffs from bringing certain claims against individual officers that would otherwise have been exculpated if brought against our directors. This change thus has the potential to reduce litigation costs associated with claims that would not survive a motion to dismiss absent this provision. Our Board believes the provision would allow the Company to avoid incurring expenses in such claim when those claims are frivolous and that our Board is well positioned to address situations in which claims are not frivolous. Our Board also anticipates that, as other Delaware
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corporations implement this provision, adoption of the provision will facilitate attracting and retaining experienced and qualified officers, and that failure to do so would put us at a disadvantage when competing for top officer candidates.
Our Board has also considered that Article NINTH Amendment will encourage our officers to exercise their best business judgement without being distracted by the risk of personal liability in connection with those decisions. To the extent the change reduces frivolous claims against individual officers, it will allow them to devote more of their time to pursue their responsibilities to the Company and the stockholders rather than defending against such claims.
The revised provision of the Delaware General Corporation Law permits, and the proposed Article NINTH Amendment would permit, exculpation only for direct claims brought by stockholders for breach of an officer’s duty of care, including in a class action, but would not eliminate officers’ monetary liability for breach of fiduciary duty claims brought by the corporation itself or in derivative claims brought by stockholders in the name of the corporation. Furthermore, the limitation on liability would not apply to breaches of the duty of loyalty, acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, or any transaction in which the officer derives an improper personal benefit.
Not Conditioned on the Other Certificate Amendments
The Article NINTH Amendment is separate from, and is not conditioned on, the approval of the Article SIXTH Amendment or the Article TWELFTH Amendment. Your vote on the Article SIXTH Amendment or the Article TWELFTH Amendment will not affect your vote on the Article NINTH Amendment or vice versa. If the Article NINTH Amendment receives the required vote, but the Article SIXTH Amendment and the Article TWELFTH Amendment do not, the Amendment to Restated Certificate of Incorporation that we will file with the Secretary of State of the State of Delaware will reflect only the Article NINTH Amendment. If the Article NINTH Amendment does not receive the required vote but one or both of the other proposed amendments to the Certificate of Incorporation receive sufficient support, the Amendment to Restated Certificate of Incorporation that we will file with the Secretary of State of the State of Delaware will reflect the proposed amendment or amendments that received the requisite vote of our stockholders.
RECOMMENDATION OF THE BOARD OF DIRECTORS
The Board of Directors recommends a vote “FOR” the adoption of the above resolution indicating approval of the amendment to our restated certificate of incorporation to reflect Delaware law provisions allowing officer exculpation.
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PROPOSAL NO. 6 – APPROVAL OF AN AMENDMENT TO THE COMPANY’S
RESTATED CERTIFICATE OF INCORPORATION TO SELECT AN EXCLUSIVE FORUM
FOR CERTAIN CLAIMS
Background
On February 21, 2023, our Board of Directors unanimously adopted a resolution declaring it advisable to amend our Certificate of Incorporation to add Article TWELFTH, subject to stockholder approval, to provide that, unless the Board consents in writing to the selection of an alternative forum, the Delaware Court of Chancery will be the exclusive forum for certain claims, including derivative claims brought in the right of the Company; claims asserting a breach of fiduciary duty; claims against the Company arising pursuant to any provision of the Delaware General Corporation Law, the Company’s Certificate of Incorporation, as amended, or the Company’s By-laws; claims to interpret, apply, enforce, or interpret the Company’s Certificate of Incorporation or By-Laws; and claims against the Company governed by the internal affairs doctrine (the “Article TWELFTH Amendment”).
Section 27 of the Exchange Act creates exclusive federal jurisdiction over suits brought to enforce any duty or liability created by the Exchange Act of 1934, as amended (the “Exchange Act”) or the rules or regulations thereunder. Accordingly, the forum selection provision in the proposed Article TWELFTH does not apply to actions arising under the Exchange Act or such rules and regulations. The Article TWELFTH Amendment further provides that the federal district courts of the United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended (the “Securities Act”).
Text of Proposed Article TWELFTH Amendment
Under the proposed amendment, Article TWELFTH of the Certificate of Incorporation would read as follows:
TWELFTH:
A. EXCLUSIVE FORUM. Unless the Board of Directors or one of its committees otherwise approves the selection of an alternate forum, the Court of Chancery of the State of Delaware (or, if, and only if, the Court of Chancery of the State of Delaware dismisses a Covered Claim (as defined below) for lack of subject matter jurisdiction, any other state or federal court in the State of Delaware that does have subject matter jurisdiction) shall, to the fullest extent permitted by applicable law, be the sole and exclusive forum for any (1) derivative claim brought in the right of the Corporation, (2) claim asserting a breach of a fiduciary duty to the Corporation or the Corporation’s stockholders owed by any current or former director, officer or other employee or stockholder of the Corporation, (3) claim against the Corporation arising pursuant to any provision of the General Corporation Law of the State of Delaware, this Amended and Restated Certificate of Incorporation or the Amended and Restated By-Laws, (4) claim to interpret, apply, enforce or determine the validity of the Amended and Restated Certificate of Incorporation or the By-Laws, (5) claim against the Corporation governed by the internal affairs doctrine, or (6) other claim, not subject to exclusive federal jurisdiction and not subject to paragraph (D) below, brought in any action asserting one or more of the claims specified in clauses (A)(1) through (5) herein above (each a “Covered Claim”); provided, however, that the provisions of this paragraph (A) of Article TWELFTH of this Amended and Restated Certificate of Incorporation will not apply to claims brought to enforce any liability or duty created by the Securities Exchange Act of 1934, as amended.
B. PERSONAL JURISDICTION. If any person or entity (a “Claiming Party”) files an action asserting a Covered Claim in a court other than one determined in accordance with paragraph (A) above (each a “Foreign Action”) without the prior approval of the Board of Directors or one of its committees, such Claiming Party shall be deemed to have consented to (1) the personal jurisdiction of the court determined in accordance with paragraph (A) above in connection with any such action brought in any such court to enforce paragraph (A) above (an “Enforcement Action”) and (2) having service of process made upon such Claiming Party in any such Enforcement Action by service upon such Claiming Party’s counsel in the Foreign Action as agent for such Claiming Party.
C. NOTICE AND CONSENT. Any person or entity purchasing or otherwise acquiring any interest in the shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article TWELFTH of this Amended and Restated Certificate of Incorporation and waived any argument relating to the inconvenience of the forums referenced above in connection with any Covered Claim.
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D. FEDERAL FORUM. Unless the Corporation consents in writing to the selection of an alternative forum, the federal district courts of the United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. Any person or entity purchasing or otherwise acquiring any interest in any security of the Corporation shall be deemed to have notice of and consented to this provision.
Reasons for the Proposal and General Effect of the Article TWELFTH Amendment
Our Board of Directors believes that the Company and its stockholders would benefit from having covered claims resolved in Delaware courts and causes of action arising under the Securities Act resolved in federal courts. In determining to approve the Article TWELFTH Amendment and recommend its adoption by stockholders, the Board considered that these forum selection provisions offer the potential to promote efficiencies in the Company’s management of litigation by:
limiting plaintiff forum-shopping;
enabling the Company to avoid litigating actions involving the same matter in state and federal courts, with the associated duplication of litigation expenses and the possibility of inconsistent outcomes; and
channeling claims toward the courts with the most experience and expertise in adjudicating such claims.
The Board also considered the increasing trend toward adoption of forum selection provisions in response to multi-forum litigation and that the Company would retain the ability to consent to an alternative forum if that made sense in a particular situation.
If the Article TWELFTH Amendment becomes effective, it may have additional effects. The Article TWELFTH Amendment could discourage certain claims or limit a plaintiff’s ability to bring such claims in a judicial forum that the particular plaintiff considers advantageous. Further, the provisions could require plaintiffs to incur litigation costs in bringing any action to contest the enforceability of the provisions, as well as to incur additional litigation costs in pursuing claims in accordance with the terms of the provision.
Not Conditioned on the Other Certificate Amendments
The Article TWELFTH Amendment is separate from, and is not conditioned on, the approval of the Article SIXTH Amendment or the Article NINTH Amendment. Your vote on the Article SIXTH Amendment or the Article NINTH Amendment will not affect your vote on the Article TWLEFTH Amendment or vice versa. If the Article TWELFTH Amendment receives the required vote, but the Article SIXTH Amendment and the Article NINTH Amendment do not receive sufficient support, the Amendment to Restated Certificate of Incorporation that we will file with the Secretary of State of the State of Delaware will reflect only the Article TWLEFTH Amendment. If the Article TWLEFTH Amendment does not receive the required vote, but one or both of the other proposed amendments to the Certificate of Incorporation do receive adequate support, the Amendment to Restated Certificate of Incorporation that we will file with the Secretary of State of the State of Delaware will reflect the proposed amendment or amendments that received the requisite vote of our stockholders.
RECOMMENDATION OF THE BOARD OF DIRECTORS
The Board of Directors recommends a vote “FOR” the adoption of the above resolution indicating approval of the amendment to our restated certificate of incorporation to add a forum selection provision to our restated certificate of incorporation.
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PROPOSAL NO. 7 —  RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS
The Audit Committee, which is comprised entirely of independent directors, has appointed Ernst & Young LLP, certified public accountants, as our independent auditors for 2016,2023, subject to ratification by stockholders, and presents this selection to stockholders for ratification. Ernst & Young LLP has acted as our independent auditors since May 14, 2001.15, 2002. Representatives of Ernst & Young LLP are expected to be present at our Annual Meeting to respond to appropriate questions and will have an opportunity to make a statement if they desire to do so.
Fees
The aggregate fees for professional services rendered to the Company by Ernst & Young LLP for the years ended December 31, 20152022 and 20142021 were as follows:
​​Fee Amount​
Services Provided
​​
Fee Amount
​2015​2014​​
2022
​
2021
Audit Fees(1)
​​$4,815,300​​​$4,882,000​​​
$5,515,889
​
$5,074,650
Audit Related Fees(2)
​​​125,000​​​​125,000​​​
135,000
​
132,500
Tax Fees(3)
​​​52,800​​​​280,900​​​
22,606
​
12,000
All Other Fees(4)
​​​88,600​​​​103,600​​​
732
​
2,000
Total​​$5,081,700​​​$5,391,500​​​
$5,674,227
​
$5,221,150
​
​
(1)
Fees in connection with the annual audit of the Company’s annual financial statements, including attestation on the Company’s internal control over financial reporting, reviews of the financial statements included in the Company’s quarterly reports on Form 10-Q, and statutory audits.
​
(2)
Fees rendered for employee benefit plan audits.
​
(3)
Fees for services related to tax compliance, including consulting services, and the preparation of tax returns and tax planning.
​
(4)
Fees for consulting services in connection with XBRL services, software subscriptions.
​
(1)
Fees in connection with the annual audit of the Company’s annual financial statements, including attestation on the Company’s internal control over financial reporting, reviews of the financial statements included in the Company’s quarterly reports on Form 10-Q, and statutory audits.
(2)
Fees rendered for employee benefit plan audits.
(3)
Fees for services related to tax compliance, including consulting services, and the preparation of tax returns.
(4)
Fees for software subscriptions.
Audit Committee Pre-Approval Procedures
The 20152022 and 20142021 audit and non-audit services provided by Ernst & Young LLP were approved by the Audit Committee. The non-audit services were also reviewed by the Audit Committee to ensure compatibility with maintaining the auditors’ independence.
The Audit Committee has implemented pre-approval policies and procedures related to the provision of audit and non-audit services. Under these procedures, the Audit Committee pre-approves both the types of services to be provided by Ernst & Young LLP and the estimated fees related to those services. During the approval process, the Audit Committee considers the impact of the types of services and the related fees on the independence of the auditors. The services and fees must be deemed compatible with the maintenance of the auditors’ independence, including compliance with the rules and regulations of the Securities and Exchange Commission. The Chairperson of the Audit Committee may pre-approve permissible services that arise between Audit Committee meetings provided that the decision to pre-approve the services is reported at the next scheduled Audit Committee meeting.
Selection and Retention of the Independent Auditors
The Audit Committee is directly responsible for the appointment, compensation, retention and oversight of our independent auditors. Each year, the Audit Committee evaluates the performance of our independent auditors (including senior audit engagement team members), negotiates and approves the fees proposed by the independent auditors, and determines whether to reengage the current firm or consider other certified public accounting firms. In doing so, the Audit Committee considers the quality and efficiency of the services provided and the audit team providing such services, capabilities and technical expertise, knowledge of our operations and industry, and the effectiveness of their communications in providing value-added advice, insights and candid feedback on risks, controls and compliance matters. The Audit Committee also considers the impact of changing firms when assessing whether to retain the current independent auditors.
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ADOPTION OF PROPOSAL NO. 37
We believe that ourthe best interests of the Company and our stockholders will be served by the approval of Proposal No. 3.7. If our stockholders fail to ratify the selection, the Audit Committee will reconsider whether or not to retain Ernst & Young LLP. Even if the selection is ratified, the Audit Committee in its discretion may direct the appointment of a different certified public accounting firm at any time during the year if it determines that such a change would be in our and our stockholders’ best interests.
Approval of Proposal No. 37 requires the affirmative vote of a majority of the shares of our Common Stock represented at the Annual Meeting and entitled to vote thereon.
RECOMMENDATION OF THE BOARD OF DIRECTORS
The Board of Directors recommends a vote “FOR” the ratification of Ernst & Young LLP as the Company’s independent auditors for 2016.2023.
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Proposal No. 4—Shareholder Proxy Access
PROPOSAL NO. 8 —  INDEPENDENT BOARD CHAIRPERSON
The Company is not responsible for the content of this stockholder proposal or its supporting statement.
Mr. William Steiner of 112 Abbotsford Gate, Piermont, NY, 10968, holder of 100 shares of Common Stock since July 1, 2014,John Chevedden has advised usnotified the Company that he intends towill present the following proposal for considerationbelow at ourthe 2023 Annual Meeting:
[EME — Rule 14a-8 Proposal, December 20, 2015]
Proposal No. 4—Shareholder Proxy Access
RESOLVED: Shareholders ask our board of directors to adopt, and present for shareholder approval, a “proxy access” bylaw as follows:
Require the Company to include in proxy materials prepared for a shareholder meeting at which directors are to be elected the name, Disclosure and Statement (as defined herein) of any person nominated for election to the board by a shareholder or an unrestricted number of shareholders forming a group (the “Nominator”) that meets the criteria established below.
Allow shareholders to vote on such nominee on the Company’s proxy card.
The number of shareholder-nominated candidates appearing in proxy materials should not exceed one quarter of the directors then serving or two, whichever is greater. This bylaw should supplement existing rights under Company bylaws, providing that a Nominator must:
a) have beneficially owned 3% or moreMeeting. Mr. Chevedden holds 50 shares of the Company’s outstanding common stock, including recallable loaned stock, continuously for at least three years before submittingCommon Stock. The Company will provide to stockholders the nomination;address of Mr. Chevedden upon request.
b) giveProposal 8 — Independent Board Chairman
graphic
Shareholders request that the Company, withinBoard of Directors adopt an enduring policy, and amend the time period identifiedgoverning documents as necessary in its bylaws, written noticeorder that 2 separate people hold the office of the information required byChairman and the bylaws and any Securities and Exchange Commission (SEC) rules about (i) the nominee, including consent to being named in proxy materials and to serving as director if elected; and (ii) the Nominator, including proof it owns the required shares (the “Disclosure”); and
c) certify that (i) it will assume liability stemming from any legal or regulatory violation arising outoffice of the Nominator’s communicationsCEO.
Whenever possible, the Chairman of the Board shall be an Independent Director.
The Board has the discretion to select a Temporary Chairman of the Board who is not an Independent Director to serve while the Board is seeking an Independent Chairman of the Board on an accelerated basis.
It is a best practice to adopt this policy soon. However this policy could be phased in when there is a contract renewal for our current CEO or for the next CEO transition.
The roles of Chairman and CEO are fundamentally different and should be held by 2 directors, a CEO and a Chairman who is completely independent of the CEO and EMCOR. The job of the CEO is to manage the company. The job of the Chairman is to oversee the CEO and management.
A Lead Director is no substitute for an independent Board Chairman. A lead director is not responsible for the strategic direction of the company. And a Chairman/CEO can ignore the advice and feedback from a lead director.
The EME lead director has only 5 duties some of which are shared with others:
Preside at Board meetings when the Chairman is absent.
(This may be rare with the Company shareholders, including the Disclosure and Statement; (ii) it will comply with all applicable laws and regulations if it uses soliciting material other than the Company’s proxy materials; and (iii) to the bestproliferation of its knowledge, the required shares were acquired in the ordinary course of business, not to change or influence controlZoom type meetings.)
Preside at the Company.
The Nominator may submit with the Disclosure a statement not exceeding 500 words in supportexecutive sessions of the nominee (the “Statement”). The Board should adopt procedures for promptly resolving disputes over whether noticeindependent directors.
Call meetings of a nomination was timely, whetherindependent directors. (A role that other directors also have.)
Serve as liaison between the Disclosure and Statement satisfy the bylaw and applicable federal regulations,Chairman and the priority givenindependent directors (A role that employees and directors may also share.)
Perform miscellaneous duties if so delegated.
Plus management fails to multiple nominations exceedinggive shareholders enough information on this topic to make a more informed decision . There is no management comparison of the one-quarter limit. No additional restrictions that do not apply to other board nominees should be placed on these nominations or re-nominations.
Proxy access would “benefit bothexclusive powers of the marketsOffice of the Chairman and corporate boardrooms, with little cost or disruption,” raising US market capitalization by up to $140 billion. This is according to a cost-benefit analysis by the Chartered Financial Analyst Institute, Proxy Access inde minimis exclusive powers of the United States: Revisiting the Proposed SEC Rule.Lead Director.
Please vote to enhance shareholder value:yes:
Independent Board Chairman - Proposal 8
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COMPANY STATEMENT IN OPPOSITION
The Board of Directors recommends that stockholders vote “AGAINST” Proposal No. 48 (the “Proposal”) for the following reasons:
OurPreserving flexibility to determine the most effective leadership structure, at any given point in time, best serves the Company and its stockholders.
Under the Company’s existing governance practices, the roles of Board Chairperson and CEO may be filled by the same individual or different individuals. Rather than adopting a “one-size-fits-all” approach to leadership, the Board believes in discretion, based on the circumstances at the time, over the decision to combine or separate the roles of Board Chairperson and CEO. The Board exercises this discretion based on multiple factors, including the overall composition of the Board; the effectiveness of the policies and practices in place to facilitate strong, independent oversight; the Company’s performance; and the potential impact that a particular leadership structure may have on performance. The Board’s knowledge of the Company’s strategic goals, the opportunities and challenges the Company faces, and the capabilities of both directors and senior management well position the Board to assess the most effective leadership structure to protect and enhance long-term stockholder value. Adopting a rigid independent chairperson requirement, as advocated in the Proposal, would unnecessarily restrict the discretion of the Board.
The Board recognizes the importance of independent oversight of the CEO and management. We outline below structures and practices the Board has given careful considerationinstituted to enhance oversight and accountability. The Board, however, does not believe that any single leadership model is appropriate in all circumstances. This view is supported by the diversity of practice at U.S. public companies. According to the 2022 U.S. Spencer Stuart Board Index, for example, only 36% of board chairpersons at S&P 500 companies meet the applicable NYSE or Nasdaq rules for independence, and at 43% of S&P 500 companies the board chairperson is also the CEO.
The Board believes that, currently, the Company and its stockholders are best served by Anthony J. Guzzi acting as both Board Chairman and CEO and M. Kevin McEvoy acting as independent Lead Director.
Anthony J. Guzzi, the Company’s Chairman of the Board and CEO, has unparalleled knowledge of our business, having served as President since 2004 and CEO since 2011. Mr. Guzzi was elected to the Board on December 15, 2009 and, after having served as the Company’s CEO for seven years, was determined by the Board to be best positioned to assume the role of Board Chairman on June 1, 2018. Under Mr. Guzzi’s leadership the Company has consistently generated strong operational and stock price performance. Since Mr. Guzzi took the role of Board Chairman, for example, the Company’s shareholder returns outperformed Global Industry Classification Standard group and Russell 3000 industry peers in the one-year, three-year and five-year timeframes. The Board believes that Mr. Guzzi’s dual role has facilitated the development and execution of our key initiatives to create value for our stockholders. The Board strongly supports maintaining this proposalleadership structure while the Company navigates the current dynamic and challenging macroeconomic landscape. During this period, combining the roles of Board Chairperson and CEO has concludedenhanced the Company’s ability to communicate to stockholders and other stakeholders with a single and consistent voice.
The Company’s Corporate Governance Guidelines and By-Laws require appointment of an independent Lead Director whenever the Board Chairperson is not independent. Accordingly, the Board appointed M. Kevin McEvoy to the position of Lead Director on June 1, 2018. Mr. McEvoy was initially elected to the Board on June 2, 2016. Mr. McEvoy has broad knowledge of the engineering, construction, oil and gas, and U.S. government services industries. Having served as the chief executive officer of a publicly-traded international engineering company, Mr. McEvoy provides the Company valuable perspective in the areas of finance and governance, as well as experience in operational areas key to the Company’s business. Mr. McEvoy’s professional experience and demeanor position him well for working collaboratively with Mr. Guzzi while simultaneously providing independent oversight of management.
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Although the role and responsibilities of our Lead Director were already established, the Board recently adopted a number of updates to the Company’s Corporate Governance Guidelines, including amendments expanding upon, and more concretely defining, the role of the Lead Director. The Lead Director has the following duties and responsibilities:
presiding at all meetings of the Board at which the Board Chairperson is not present, including executive sessions of independent directors;
meeting with the CEO following each executive session of independent directors to discuss matters arising during that executive session;
calling special meetings of the Board or of the independent directors;
participating in the formation of, and approving, the agenda, schedule, and materials for each Board meeting;
serving as liaison between the Board Chairperson and the independent directors;
ensuring that he or she is available for consultation and direct communication with stockholders and other key constituents, as appropriate;
participating, in consultation with the Compensation and Personnel Committee, in CEO succession planning;
guiding the annual review by the Board of the performance of the CEO; and
performing such other duties as the Board, from time to time, may delegate.
The Board is responsible for establishing and maintaining an effective leadership structure for the reasons described below itCompany. The Board believes that the current most effective leadership structure for the Company is notachieved through the combination of the extensive knowledge and experience of Mr. Guzzi; the active, independent leadership role played by Mr. McEvoy; and the authority provided to the independent Lead Director in the best interests of our Company and our stockholders.Corporate Governance Guidelines.
Our current leadership structure provides strong, independent Board is committed to strongoversight of management, and EMCOR’s robust corporate governance practices and an appropriate balancemechanisms seek to ensure accountability.
The Proposal’s prescriptive approach is not necessary for effective oversight of stockholder rights. As our Board continuesmanagement and accountability to engage with our stockholders to discuss proxy access, it is clear that while some of our stockholders support the adoption of a proxy access right, there continues to be a variety of viewpoints amongst our stockholders about how a proxy access rule should be structured. In addition, several of our large stockholders oppose a proxy access right altogether. We will continue to engage with our stockholders about whether a proxy access right makes sense for us and if such a right is adopted, the specifics surrounding it, including, ownership thresholds and details about how the rule should work. In light of the current diverging views of our stockholders on this issue, ourstockholders. The Board believes that the need for proxyCompany’s overall corporate governance framework already satisfies the Proposal’s stated objectives. Existing corporate governance practices and mechanisms include:
A diverse and experienced board of directors elected annually by stockholders.
With the exception of Mr. Guzzi, the Board is composed entirely of independent directors within the meaning of NYSE rules, resulting in 90% of the Board being independent.
Each of the three standing Board Committees - the Audit Committee, the Compensation and Personnel Committee, and the Nominating and Corporate Governance Committee - are composed solely of, and chaired by, independent directors. The Company’s Corporate Governance Guidelines mandate this composition in order to seek to ensure that independent directors provide oversight of the key matters outlined in the committee charters.
Each member of the Board is elected annually in a single class.
The Board meets in executive session at regularly scheduled meetings without the presence of the CEO or other members of management. Independent directors exercise complete autonomy over the matters discussed during these executive sessions.
The Board conducts an annual assessment of the Board’s leadership structure.
The independent directors annually elect the Lead Director, and the Board conducts an annual review of the performance of the Lead Director.
Under the guidance of the Lead Director, the Board conducts an annual performance review of the CEO.
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All directors have access should be carefully consideredto Company officers, employees, and evaluatedoutside advisors. The Board and its committees also have authority to hire independent legal, financial, or other advisors, without obtaining advance approval from a Company officer.
Our Certificate of Incorporation and By-Laws do not require the approval of a supermajority of our stockholders in order to approve amendments to our Certificate of Incorporation or By-Laws or other matters.
Further, since Mr. Guzzi took the role of Board Chairman, the Company’s stockholders have consistently voted in favor of say-on-pay proposals regarding compensation of the Company’s named executive officers. This demonstrates the Company’s commitment and responsiveness to stockholder concerns and effective stockholder engagement.
In summary, the Board believes that, given the robust independent oversight framework in place, stockholders are best served by the Board retaining the flexibility to determine, from time to time, the most appropriate leadership structure based the Company’s needs in light of our current corporate governance practices.
Our Board takes its accountability to our stockholders very seriously. We provide our stockholders with the opportunity to have meaningful input incircumstances existing at the director nomination and election process. Stockholders may nominate one or more directors, whom the Board will evaluate under the same criteria it applies to its own nominees. It is important to note that while this process has existed for a number of years, we have never received a proposed nominee from a stockholder.time. The Board, therefore, believes that this proposal ignoresstockholders should vote against the effective say that stockholders currently have in the director selection process.Proposal.
The Board also believes that the Corporate Governance Committee, which is comprised solely of independent directors who have a fiduciary duty to act in the best interests of our stockholders, is in the best position to review and recommend director nominees who (i) possess the skills and qualifications to enhance the effectiveness of the Board, (ii) have experience in issues relevant to the Company’s business, (iii) are free from conflicts of interest and (iv) will represent the interests of all stockholders, not just those with special interests. As part of its evaluation of each candidate, the Corporate Governance Committee takes into account how that candidate’s particular skills, qualifications, experiences and attributes, when combined with those of the then-current Board, would add value for stockholders and allow the Board to satisfy its oversight responsibilities most effectively.THE BOARD RECOMMENDS A VOTE “AGAINST” THIS PROPOSAL REGARDING AN
In contrast, this proposal undermines the critical role that the Corporate Governance Committee plays in nominating director candidates by allowing individuals or groups of stockholders who have no fiduciary duty to our stockholders and who are not bound by our corporate governance policies and practices to nominate directors to advance their own agenda or narrow interests, without regard to the best interests of the Company. This proposal would allow a stockholder with a special interest or affiliated with a competitor to use proxy access to promote a self-interested agenda or one that is detrimental to the Company. Ownership of 3% of our shares for 3 years does not represent a sufficiently substantial long-term interest in our Company to justify the significant cost and disruption that would result from regular proxy contests made possible by this proposal if adopted. While stockholders would be free to reject such nominees, the cost and disruption of having to defend against narrow agenda-driven attacks is detrimental to the Company, not in our stockholders’ best interests, and undermines the Board’s ability to function in an effective manner.INDEPENDENT BOARD CHAIRPERSON.
Our existing corporate governance policies provide the appropriate balance between ensuring Board accountability to stockholders and enabling the Board to oversee our business and affairs for the long-term benefit of stockholders. Our Board is fully accountable to stockholders through a variety of progressive governance practices including:
•
an independent Board chairman;
​
•
annual elections of our entire Board;
​
•
majority voting for our directors; and
​
•
the ability of stockholders to call special meetings.
​
​
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Our stockholders have multiple avenues to communicate with us and influence the operation of our Board. We provide our stockholders with the ability to voice their perspective to our Board directly, with an option to direct such communications to an individual director, a specific group of directors, and/or all non-employee directors as a group. Stockholders may also take their perspectives directly to stockholders by acting at our annual meeting or by calling a special meeting. Our investor relations team also regularly engages with our stockholders, many of whom own less than 3% of our common stock, providing a meaningful avenue for two-way communication. The Board reviews and carefully considers feedback expressed by our stockholders. We are committed to continuing our practice of quality stockholder engagement and responsiveness.
Given the good corporate governance practices of our Board and the avenues that already exist for stockholder participation and input, Proposal No. 4 does not warrant the support of our stockholders. It has the potential to create significant risks to our stockholders by potentially introducing directors with short-term or competitive incentives who do not consider the best interests of the Company and its stockholders. As noted above, we will continue to engage with our stockholders to ensure that we have an understanding of their views so that such views can be incorporated into our approach on this issue.
RECOMMENDATION OF THE BOARD OF DIRECTORS
The Board of Directors urges you to vote “AGAINST” Proposal No. 4.8
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
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Section 16(a) of the Securities Exchange Act of 1934 requires our directors and executive officers, and persons who own more than 10% of a registered class of our equity securities, to file initial reports of ownership and reports of change in ownership of our Common Stock and other equity securities with the Securities and Exchange Commission and to furnish copies of such statements to us.
To our knowledge and based solely upon a review of such reports, during 2015 all such reports relating to stock ownership were timely filed.
OTHER MATTERS
Stockholder Proposals. Stockholders’ proposals submitted pursuant to Rule 14a-8 of the Securities Exchange Act of 1934, as amended, must be received by us at our headquarters in Norwalk, Connecticut on or before December 22, 201627, 2023 in order to be eligible for inclusion in next year’s proxy statement.
Our By-Laws set forth advance notice provisions and procedures to be followed by stockholders who wish to bring business before an annual meeting of stockholders or who wish to nominate candidates for election to the Board.
A stockholder may propose business to be included in the agenda of an annual meeting only if written notice of such stockholder’s intent is given to our Corporate Secretary:
•
not earlier than 90120 days nor later than 6090 days in advance of the anniversary of the date of the immediately preceding annual meeting; or
​
•
if the date of the annual meeting occurs more than 30 days before or 60 days after the anniversary of such immediately preceding annual meeting, not later than the close of business on the later of (a) the sixtieth day prior to such annual meeting and (b) the tenth day following the date on which a public announcement of the date of such meeting is first made.
​
Each such notice must set forth certain background and other information specified in the By-Laws, including a description of the proposed business, and the reasons for conducting such business at the annual meeting.meeting, and certain information related to such stockholders’ beneficial ownership of our securities.
A stockholder may nominate candidates for election to the Board at an annual meeting only if written notice of such stockholder’s intent to make such nomination is given to our Corporate Secretary:
•
not earlier than 90120 days nor later than 6090 days in advance of the anniversary of the date of the immediately preceding annual meeting; or
​
​
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​
•
if the date of the annual meeting occurs more than 30 days before or 60 days after the anniversary of such immediately preceding annual meeting, not later than the close of business on the later of (a) the sixtieth day prior to such annual meeting and (b) the tenth day following the date on which a public announcement of the date of such meeting is first made.
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Each such notice must set forth certain background and other information specified in our By-Laws.By-Laws, including a statement as to whether such stockholder intends to solicit proxies or votes from stockholders in support of such nomination in accordance with Rule 14a-19 under the Exchange Act. Any shareholder that intends to solicit proxies in support of a director nominee other than our Board’s nominees also must comply with Rule 14a-19 under the Exchange Act.
Our 20162023 Annual Meeting of Stockholders is to be held on June 2, 20168, 2023 and, accordingly, with respect to our 20172024 Annual Meeting of Stockholders, such notices must be received no earlier than March 2, 2017February 9, 2024 or later than April 4, 2017.March 10, 2024.
The time limits described above also apply in determining whether notice is timely for purposes of Rule 14a-4(c)(1) under the Securities Exchange Act of 1934, as amended, relating to exercise of discretionary voting authority, and are separate from and in addition to the Securities and Exchange Commission’s requirements that a stockholder must meet to have a proposal included in our proxy statement.
Our proxy access by-law permits a stockholder (or a group of up to 25 stockholders) owning 3% or more of the Company’s outstanding Common Stock continuously for at least three years to nominate and include in the Company’s proxy statement director candidates to our Board, provided that the number of director candidates so nominated may not exceed 25% of the number of directors then serving on the Board and if such amount is not a whole number the limit on the number of directors so nominated shall be the closest whole number below 25%, but not less than two. Such nominations are subject to certain eligibility, procedural, and disclosure requirements, including the requirement that the Company must receive notice of such nominations no earlier than 150 calendar days and no later than 120 calendar days prior to the anniversary date of the release of the prior year’s annual proxy materials.
For the 2024, Annual Meeting of Stockholders, notice of a proxy access nomination must be received at the address provided below no earlier than November 27, 2023 and no later than December 27, 2023.
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OTHER INFORMATION
We will bear the cost of soliciting proxies.proxies, including the cost of preparing and distributing this Proxy Statement and the enclosed form of proxy. We expect to solicit proxies primarily by mail. Proxies also may be solicited personally and by telephone by some of our officers and regular employees. We have retained D.F. King & Co., Inc. for solicitation of all brokers and nominees for a fee of $12,500, plus customary out-of-pocket expenses. We may reimburse brokers and other nominees for their expenses in communicating with the persons for whom they hold Common Stock.
The Board is aware of no other matters that are to be presented to stockholders for formal action at our Annual Meeting. If, however, any other matters properly come before the meeting or any adjournment thereof, it is the intention of the persons named in the enclosed proxy to vote in accordance with their judgment on such matters.
Upon the written request of any stockholder of record on April 7, 2016,11, 2023, a copy of our annual report on Form 10-K for the year ended December 31, 20152022 (excluding exhibits) as filed with the Securities and Exchange Commission will be supplied without charge. Requests should be directed to Maxine L. Mauricio, Corporate Secretary, EMCOR Group, Inc., 301 Merritt Seven, 6th Floor, Norwalk, Connecticut 06851.
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BY ORDER OF THE BOARD OF DIRECTORS
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MAXINE L. MAURICIO
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Corporate Secretary
April 20, 201625, 2023
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Exhibit A​A
EMCOR GROUP, INC.
STANDARDS FOR DETERMINING DIRECTOR INDEPENDENCE
It is the policy of the Board of Directors that a substantial majority of Directors be independent of the Company and of the Company’s management. For a Director to be deemed “independent,” the Board shall affirmatively determine that the Director has no material relationship with the Company (either directly or as a partner, stockholder or officer of an entity that has a relationship with the Company). This determination shall be disclosed in the proxy statement for each annual meeting of the Company’s stockholders. In making this determination, the Board shall apply the following standards:
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A Director who is an employee, or whose immediate family member is an executive officer, of the Company shall not be deemed independent until three years after the end of such employment relationship.
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A Director who receives, or whose immediate family member receives, more than $100,000 per year in direct compensation from the Company, other than director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service), shall not be deemed independent until three years after he or she ceases to receive more than $100,000 in such compensation.
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A Director who is affiliated with or employed by, or whose immediate family member is affiliated with or employed in a professional capacity by, a present or former internal or external auditor of the Company shall not be deemed independent until three years after the end of the affiliation or the employment or auditing relationship.
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A Director who is employed, or whose immediate family member is employed, as an executive officer of another company where any of the Company’s current executive officers serve on that company’s compensation committee shall not be deemed independent until three years after the end of such service or the employment relationship.
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A Director who is a significant equity holder, an executive officer, general partner, or employee, or whose immediate family member is a significant equity holder, an executive officer or general partner, of any entity that makes payments to, or receives payments from, the Company for property or services in an amount which, in any single fiscal year of such entity, exceeds 2% of such other entity’s consolidated gross revenues, shall not be deemed independent until three years after falling below such threshold.
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A Director who is a significant equity holder, an executive officer, general partner or employee, or whose immediate family member is a significant equity holder, an executive officer or general partner, of an entity to which the Company was indebted at the end of the Company’s fiscal year in an aggregate amount in excess of 2% of the Company’s total consolidated assets at the end of such fiscal year, shall not be deemed independent until three years after falling below such threshold.
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A Director who is a significant equity holder, an executive officer, general partner or employee, or whose immediate family member is a significant equity holder, an executive officer or partner, of an entity which was indebted to the Company at the end of such entity’s fiscal year in an aggregate amount in excess of 2% of such entity’s total consolidated assets at the end of such fiscal year, shall not be deemed independent until three years after falling below such threshold.
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A Director who is, or whose immediate family member is, an executive officer (or who serves in a comparable position) of a tax-exempt entity that receives significant contributions (i.e. more than $200,000 or more than 2% of the annual contributions received by the entity in a single fiscal year of the tax-exempt entity, whichever amount is lower) from the Company, any executive officer or any immediate family member of an executive officer shall not be deemed independent until three years after falling below such threshold, unless such contributions were approved in advance by the Board of Directors.
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For purposes of these Guidelines, the term:
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“immediate family” includes a person’s spouse, parents, children, siblings, mothers and fathers-in-law, sons and daughters-in-law, brothers and sisters-in-law and anyone (other than domestic employees) sharing a person’s home, but excluding any person who is no longer an immediate family member as a result of legal separation or divorce, or death or incapacitation.
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A-1
“Company” includes any parent or subsidiary in a consolidated group with the Company.
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“significant” equity holder of an entity means a holder of 10% or more of such entity’s equity.
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The Board shall undertake an annual review of the independence of all non-employee Directors. In advance of the meeting at which this review occurs, each non-employee Director shall be asked to provide the Board with full information regarding the Director’s business and other relationships with the Company to enable the Board to evaluate the Director’s independence.
Directors have an affirmative obligation to inform the Board of any material changes in their circumstances or relationships that may impact their designation by the Board as “independent.” This obligation includes all business relationships between, on the one hand, Directors or members of their immediate family, and, on the other hand, the Company.
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​A-2
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