DEF 14A: Franklin Electric Co., Inc. Announces Annual Meeting of Shareholders

Franklin Electric Co., Inc. will hold its Annual Meeting of Shareholders on May 3, 2024, to elect directors, ratify the appointment of Deloitte & Touche LLP, and approve executive compensation.

Summary

• Franklin Electric Co., Inc. will hold its Annual Meeting of Shareholders on May 3, 2024, in Fort Wayne, Indiana.
• Shareholders of record as of March 4, 2024, are entitled to vote.
• The meeting's purposes include electing Gregg C. Sengstack and David M. Wathen as directors for terms expiring in 2027.
• Shareholders will also vote to ratify the appointment of Deloitte & Touche LLP as the company's independent registered public accounting firm for the 2024 fiscal year.
• An advisory vote on the executive compensation of named executive officers will also take place.
• The company's Board of Directors recommends voting for the election of the director nominees, for the ratification of Deloitte & Touche LLP, and for the approval of executive compensation.
• In 2023, Franklin Electric delivered a record $4.11 of EPS.
• Free Cash Flow (FCF) was a record $276 million, or 142% of net income and after tax Return on Invested Capital (ROIC) was over 17%.

Sentiment

Score: 7

Explanation: The document presents a positive outlook with record financial performance, but also acknowledges challenges in the market, resulting in a moderately positive sentiment.

Positives

• The Board of Directors is recommending shareholders vote for the election of directors, ratification of the accounting firm, and approval of executive compensation.
• The company achieved record EPS of $4.11 in 2023.
• The company achieved record Free Cash Flow (FCF) of $276 million in 2023.
• The company achieved after tax Return on Invested Capital (ROIC) was over 17% in 2023.

Risks

• Predicting end-user demand in our markets is always a challenge, but 2023 proved more difficult than most years as geopolitics became increasingly uncertain, the U.S. dollar continued to strengthen, housing markets slowed, and varying weather patterns affected demand.
• In our largest end market, the United States, new housing starts declined over 25%, existing home sales were the lowest in thirty years and interest rates climbed beyond expectations.
• We worked diligently in the first half of the year to catch up to customer demand, then experienced de-stocking pressure across the entire supply chain as lead times shortened and interest rates rose.

Future Outlook

The company looks forward to another successful year and sharing achievements along the way.

Management Comments

• Gregg Sengstack, Chairperson of the Board and Chief Executive Officer: 'We look forward to another successful year and sharing our achievements along the way.'

Industry Context

The document highlights the challenges faced due to uncertain geopolitics, strengthening U.S. dollar, slowing housing markets, and varying weather patterns, indicating a complex and dynamic industry environment.

Comparison to Industry Standards

• The Water Systems segment competes with Grundfos Management A/S, Pentair, Inc. and Xylem, Inc.
• The Fueling Systems segment competes with Vontier Corporation and Dover Corporation.

Stakeholder Impact

• Shareholders are provided with information to make informed decisions regarding director elections, auditor ratification, and executive compensation.
• Employees are acknowledged for their commitment and service.
• Customers are assured of the company's commitment to providing unparalleled safety, quality, and the lowest total cost of ownership.

Next Steps

• Shareholders are urged to vote their proxy whether or not they plan to attend the Annual Meeting.
• The Board of Directors will consider the outcome of the advisory vote on executive compensation when making future compensation decisions.

Key Dates

Keywords

Annual Meeting, Shareholders, Proxy Statement, Executive Compensation, Board of Directors, Deloitte & Touche LLP, Director Election, Franklin Electric