Company: DHR
Filing Date: 2025-03-26
Form Type: DEF 14A
Source: 0000313616-25-000081
Chunk: 44

Company: DANAHER CORP /DE/
Filing Date: 2025-03-26
Form: DEF 14A
Chunk 44
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 individual factor, the Committee took into account the executive’s execution against their personal performance objectives established at the beginning of the year, the executive’s performance with respect to each of the Company’s four “Core Behaviors” (which are a set of standards and behaviors that Danaher associates are expected to aspire to and are assessed against), the executive’s overall performance for the year, the size of the Company Payout Percentage for the year, and the amount of annual cash incentive compensation that peer companies typically pay to executives serving in comparable roles with comparable performance.

| 2025 Notice of Annual Meeting and Proxy Statement |     | 46 |

Without limiting the foregoing, with respect to the executive officer team’s 2024 performance as a whole, the Committee sought to balance considerations of performance relative to the prevailing operating environment, accountability and retention. The Committee considered the Company’s 2024 financial results; the effort required to respond effectively within the challenging macro-economic environment the Company faced; the actions taken to invest in the Company’s long-term strategic and competitive positioning; and retention considerations. Assessing 2024 bonus awards within this broader context, the Committee awarded Personal Payout Percentages for the NEOs (other than Mr. Blair) that averaged 136%, and awarded Mr. Blair a Personal Payout Percentage of 140%.

Company Payout Percentage

The Company Payout Percentage is formulaic, based on the Company’s 2024 performance against the Adjusted EPS, Free Cash Flow Ratio and Core Revenue Growth metrics described above and below and in Appendix A (the “Metrics”). The Committee weights Adjusted EPS most heavily in the formula because it believes Adjusted EPS correlates strongly with shareholder returns, particularly since Adjusted EPS is calculated in a manner that focuses on gains and charges the Committee believes are most directly related to Company operating performance during the period. The Committee also uses the Free Cash Flow Ratio to help validate the quality of the Company’s earnings, and Core Revenue Growth to incentivize an appropriate balance between profitability and growth.

For each of the Metrics, the Committee established threshold, target and maximum levels of Company performance, as well as a payout percentage curve that related each level of performance to a payout expressed as a percentage of target bonus. The payout percentage was 0% for below-threshold performance, 50% for threshold performance, 100% for target performance and 200% for performance that equaled or exceeded the maximum. The payout percentages for performance between threshold and target, or between target and maximum, respectively, were determined by linear interpolation