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Pay vs Performance Disclosure
Pure in Millions
 12 Months Ended
Nov. 30, 2024
USD ($)
Dec. 02, 2023
USD ($)
Dec. 03, 2022
USD ($)
Dec. 02, 2022
USD ($)
Nov. 28, 2021
USD ($)
Pay vs Performance Disclosure          
Pay vs Performance Disclosure, Table

Pay Versus Performance

 

As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between executive "compensation actually paid" (CAP, as computed in accordance with SEC rules) and certain financial performance metrics of the Company. For further information concerning the Company’s pay for performance philosophy and how the Company aligns executive compensation with the Company’s performance, refer to “Compensation Discussion and Analysis.”

 

 

Pay Versus Performance Table

 

                                    Value of Initial Fixed $100 Investment Based On:                  

Year

   Summary Compensation Table Total for PEO ($)(1)     “Compensation Actually Paid” to PEO ($)(2)     Average Summary Compensation Table Total for Non-PEO NEOs ($)(3)     Average “Compensation Actually Paid” to Non-PEO NEOs ($)(4)     Total Shareholder Return ($)(5)     Peer Group Total Shareholder Return ($)(6)    

Net Income

(millions)(7) ($)

    

Adjusted EBITDA

(millions) ($)(8)

  
                                                                 

2024

     7,840,717       7,393,283       1,878,810       1,694,049       149.59       115.03       130       581  
                                                                 
                                                                 

2023

     5,050,902       5,348,935       1,733,524       1,529,973       147.95       105.03       145       556  
                                                                 
                                                                 

2022

     9,625,758       12,914,989       2,365,901       2,675,267       152.83       120.59       180       533  
                                                                 
                                                                 

2021

     11,799,233       21,770,541       1,837,302       2,381,444       139.05       121.21       161       459  
                                                                 

 

(1)

Our Principal Executive Officer (PEO) for fiscal 2021 and 2022 was James J. Owens and for fiscal 2023 and 2024 was Celeste B. Mastin. The dollar amounts reported are the amounts of total compensation reported in our "Summary Compensation Table."

 

(2)

The dollar amounts reported represent the amount of CAP. The dollar amounts do not reflect the actual amount of compensation earned or realized by or paid to an NEO during the applicable year. In accordance with SEC rules, the following adjustments were made to the PEO's total compensation, as reported in the "Summary Compensation Table," to determine the PEO's CAP:
       
PEO Total Compensation Amount $ 7,840,717 $ 5,050,902 $ 9,625,758   $ 11,799,233
PEO Actually Paid Compensation Amount $ 7,393,283 5,348,935 12,914,989   21,770,541
Adjustment To PEO Compensation, Footnote

Year

   Reported Summary Compensation Table Total for PEO ($)    

Deduct:

Reported Value

of Equity Awards ($)(a)

    

Add:

Equity Award

Adjustments ($)(b)

    

Deduct:

Change in Actuarial

Present Value of

Pension Benefits ($)(c)

    

Add:

Pension Benefit

Adjustments ($)(c)

     Equals: “Compensation Actually Paid” to PEO ($)  
                                                 

2024

     7,840,717       5,579,237       5,131,803       -       -       7,393,283  
                                                 
                                                 

2023

     5,050,902       3,240,588       3,538,621       -       -       5,348,935  
                                                 
                                                 

2022

     9,625,758       5,118,606       8,407,837       -       -       12,914,989  
                                                 
                                                 

2021

     11,799,233       7,852,124       17,823,432       -       -       21,770,541  
                                                 

 

(a)

The grant date fair value of equity awards represents the total of the amounts reported in the “Stock Awards” and “Option Awards” columns in the "Summary Compensation Table" for the applicable year.

 

(b)

The amounts (deducted) or added in calculating the equity award adjustments are set forth in the following table. The valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of grant.

 

(c)

 No NEOs participate in the H.B. Fuller Legacy Pension Plan.

 

H. B. FULLER | 2025 Proxy Statement    58   

 

Year

  

Add: Year End Fair Value of Outstanding and Unvested Equity Awards Granted in the Year ($)

    

Add: Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Granted in Prior Years ($)

    

Add: Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year ($)

    

Add: Change in Fair Value from Prior Year End of Equity Awards Granted in Prior Years that Vested in the Year ($)

    

Deduct: Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year ($)

     Add: Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value ($)    

Equals: Total Equity Award Adjustments ($)

  
                                                         

2024

     5,182,791       (70,082 )     -       19,094       -       -       5,131,803  
                                                         
                                                         

2023

     3,754,816       (99,113 )     -       (117,081 )     -       -       3,538,621  
                                                         
                                                         

2022

     6,101,567       2,659,513       -       (353,243 )     -       -       8,407,837  
                                                         
                                                         

2021

     14,246,777       3,854,019       -       (277,364 )     -       -       17,823,432  
                                                         

 

(3)

The dollar amounts reported represent the average of the amounts reported for the Company’s named executive officers (NEOs) as a group (excluding our President and CEO) in the “Total” column of the "Summary Compensation Table" in each applicable year. These NEOs included for purposes of calculating the average amounts in each applicable year are as follows: (i) for fiscal 2024, Mr. Cai, Mr. Corkrean, Ms. Jensen, and Mr. Malik; (ii) for fiscal 2023, Mr. Cai, Mr. Corkrean, James J. East, our Executive Vice President, Hygiene, Health and Consumable Adhesives, and Ms. Jensen; (iii) for fiscal 2022, Mr. Cai, Heather Campe, our Senior Vice President, International Growth, Mr. Corkrean, and Ms. Mastin; and (iv) for fiscal 2021, Mr. Cai, Theodore M. Clark, our former Executive Vice President and Chief Operating Officer, Mr. Corkrean, Mr. Malik, and Andrew E. Tometich, our former Executive Vice President, Hygiene, Health and Consumable Adhesives.

 

(4)

The dollar amounts reported represent the average amount of CAP to the NEOs as a group (excluding our President and CEO). The dollar amounts do not reflect the actual average amount of compensation earned by or paid to these NEOs as a group during the applicable year. In accordance with the SEC rules, the following adjustments were made to average total compensation, as reported in the "Summary Compensation Table," for these NEOs to determine their average CAP, using the same methodology described above in Note 2:
       
Non-PEO NEO Average Total Compensation Amount $ 1,878,810 1,733,524 2,365,901   1,837,302
Non-PEO NEO Average Compensation Actually Paid Amount $ 1,694,049 1,529,973 2,675,267   2,381,444
Adjustment to Non-PEO NEO Compensation Footnote

Year

  

Average Reported Summary Compensation Table Total for Non-PEO NEOs ($)

    

Deduct:

Average Reported

Value of Equity Awards($)(a)

    

Add: Average Equity Award Adjustments($)(b)

     Deduct: Average Change in Actuarial Present Value of Pension Benefits ($)(c)    

Add:

Average Pension

Benefit Adjustments ($)(c)

    

Equals: Average “Compensation Actually Paid” to Non-PEO NEOs ($)

  
                                                 

2024

     1,878,810       833,448       648,687       -       -       1,694,049  
                                                 
                                                 

2023

     1,733,524       814,172       610,621       -       -       1,529,973  
                                                 
                                                 

2022

     2,365,901       781,698       1,091,064       -       -       2,675,267  
                                                 
                                                 

2021

     1,837,302       810,273       1,354,415       -       -       2,381,444  
                                                 

 

(a)

The grant date fair value of equity awards represents the total of the amounts reported in the “Stock Awards” and “Option Awards” columns in the "Summary Compensation Table" for the applicable year.

 

(b)

The amounts deducted or added in calculating the equity award adjustments are set forth in the following table. The valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of grant.

 

(c)

 No NEOs participate in the H.B. Fuller Legacy Pension Plan.

 

Year

  

Add: Average Year End Fair Value of Outstanding and Unvested Equity Awards Granted in the Year ($)

    

Add: Average Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Granted in Prior Years ($)

    

Add: Average Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year ($)

    

Add: Average Change in Fair Value from Prior Year End of Equity Awards Granted in Prior Years that Vested in the Year ($)

    

Deduct: Average Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year ($)

    

Add: Average Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value ($)

    

Equals: Average Total Equity Award Adjustments ($)

  
                                                         

2024

     766,815       (131,859 )     7,979       5,752       -       -       648,687  
                                                         
                                                         

2023

     932,268       (98,832 )     6,552       (229,366 )     -       -       610,621  
                                                         
                                                         

2022

     952,615       188,553       8,304       (39,896 )     (18,512 )     -       1,091,064  
                                                         
                                                         

2021

     1,115,084       394,490       5,412       (25,366 )     (135,205 )     -       1,354,415  
                                                         

 

H. B. FULLER | 2025 Proxy Statement    59   

 

(5)

Cumulative TSR is based on a fixed investment of $100 in the Company's common stock measured from the beginning of the measurement period (November 27, 2020) through and including the end of each applicable fiscal year. Return includes (a) the cumulative amount of dividends for the measurement period, assuming dividend reinvestment, and (b) the difference between the Company's share price at the end of each applicable year and the beginning of the measurement period.

 

(6)

Represents the peer group cumulative TSR, weighted according to the respective companies’ stock market capitalization at the beginning of each measurement period for which a return is indicated. The peer group used for this purpose is the Dow Jones U.S. Specialty Chemicals Index.

 

(7)

The dollar amounts reported represent the amount of net income reflected in the Company’s audited financial statements for the applicable year.

 

(8)

The Compensation Committee has selected Adjusted EBITDA as the Company-Selected Measure representing the most important financial measure used to link CAP to the NEOs in fiscal 2024 to Company performance. Adjusted EBITDA is, when combined with the derivative Adjusted EBITDA Margin, the most heavily-weighted metric of our STIP metrics, and under our pay-for-performance approach the STIP represents a significant portion of the NEOs’ compensation. Adjusted EBITDA is a non-U.S. GAAP financial measure defined in "Fiscal 2024 Short-Term Incentive Compensation." See “Annex A” for information concerning this measure including a reconciliation to the most comparable U.S. GAAP financial measure.

 

 

        
Compensation Actually Paid vs. Total Shareholder Return
captsr.jpg

 

 

        
Compensation Actually Paid vs. Net Income

 

capnetincome.jpg
        
Compensation Actually Paid vs. Company Selected Measure
capebitda.jpg

 

 

 

        
Total Shareholder Return Vs Peer Group

Description of Certain Relationships

 

The graphs below compare the CAP to our President and CEO and the average of the CAP to our other NEOs, with (i) our cumulative TSR, (ii) our net income, and (iii) our Adjusted EBITDA, in each case for our 2021, 2022, 2023, and 2024 fiscal years. The graphs below also compare our cumulative TSR and our peer group cumulative TSR for our 2021, 2022, 2023, and 2024 fiscal years. TSR amounts assume $100 invested on November 27, 2020 and reinvestment of dividends.

 

tsrpeer.jpg

 

        
Tabular List, Table

Financial Performance Measures

 

The most important financial performance measures used by the Company to link CAP to the Company’s NEOs in fiscal 2024 to the Company’s performance are listed below. These metrics are further described in “Key Elements of Executive Compensation Program.”

 

  ● 

Adjusted EBITDA
  ●  Adjusted EBITDA Margin
  ● 

Adjusted EPS
  ● 

Adjusted Net Revenue
  ● 

ROIC

 

H. B. FULLER | 2025 Proxy Statement    61   

       
Total Shareholder Return Amount $ 149.59 147.95 152.83   139.05
Peer Group Total Shareholder Return Amount 115.03 105.03 120.59   121.21
Net Income (Loss) $ 130,000,000 $ 145,000,000 $ 180,000,000   $ 161,000,000
Company Selected Measure Amount 581 556 533   459
Adjustment to Compensation, Amount         $ 1,115,084
Measure:: 1          
Pay vs Performance Disclosure          
Name Adjusted EBITDA        
Measure:: 2          
Pay vs Performance Disclosure          
Name Adjusted EPS        
Measure:: 3          
Pay vs Performance Disclosure          
Name Adjusted Net Revenue        
Measure:: 4          
Pay vs Performance Disclosure          
Name ROIC        
PEO          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ 5,131,803 $ 3,538,621 $ 8,407,837 $ 8,407,837 17,823,432
PEO | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 0   0
PEO | Aggregate Pension Adjustments Service Cost          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 0   0
PEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 5,579,237 3,240,588 5,118,606   7,852,124
PEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 5,182,791 3,754,816   6,101,567 14,246,777
PEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (70,082) (99,113)   2,659,513 3,854,019
PEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0   0 0
PEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 19,094 (117,081)   (353,243) (277,364)
PEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0   0 0
PEO | Dividends or Other Earnings Paid on Equity Awards not Otherwise Reflected in Total Compensation for Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0   $ 0 0
Non-PEO NEO          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 648,687 610,621 1,091,064   1,354,415
Non-PEO NEO | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 0   0
Non-PEO NEO | Aggregate Pension Adjustments Service Cost          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 0   0
Non-PEO NEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 833,448 814,172 781,698   810,273
Non-PEO NEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 766,815 932,268 952,615    
Non-PEO NEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (131,859) (98,832) 188,553   394,490
Non-PEO NEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 7,979 6,552 8,304   5,412
Non-PEO NEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 5,752 (229,366) (39,896)   (25,366)
Non-PEO NEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 (18,512)   (135,205)
Non-PEO NEO | Dividends or Other Earnings Paid on Equity Awards not Otherwise Reflected in Total Compensation for Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ 0 $ 0 $ 0   $ 0