Company: AOS
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001193125-25-037641
Chunk: 81

Company: SMITH A O CORP
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 81
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 pursuing fair chance employment can also advance company diversity goals. In its 2022 Report, A.O. Smith describes that “diversity has been empirically shown to promote creativity and innovation and is a priority within [the] company.” Yet the percentage of women in its global workforce has declined 10% over 3 years, and the percentage of racially/ethnically diverse US employees declined 1% over 1 year. In the proponent’s opinion, this suggests that current diversity efforts are inadequate; 2025 Proxy Statement 65

Stockholder Proposal Requesting A Board Report On Our Hiring Practices With Respect To Formerly Incarcerated People

Excluding qualified individuals intentionally or unintentionally because of criminal records could harm the company’s competitive advantage and reputation. Shareholders believe that company value would be well-served by examining whether revisions to company practices related to recruiting formerly incarcerated individuals could decrease future risks related to discriminatory hiring.

RESOLVED: Shareholders request that the Board of Directors prepare a report, at reasonable cost, omitting proprietary information, and published publicly within one year from the annual meeting date, analyzing whether A. O. Smith’s hiring practices related to people with arrest or incarceration records are aligned with publicly stated diversity commitments, and whether those practices may pose reputational or legal risk due to potential discrimination (including racial discrimination) claims.

**Board of Directors’ Response**

Our Board of Directors and its Nominating and Governance Committee has considered this proposal, concluded that it is not in the best interests of our stockholders or employees, and recommends a vote against it. Our Board believes that A. O. Smith provides an inclusive workplace where discrimination of any kind is not tolerated, and an environment free of undue barriers to those with criminal records. Our inclusive workplace is grounded in our Values and Guiding Principles, which serve as our guiding force on how we conduct business. As described in more detail below, our Values and Guiding Principles directly impact on the company’s approach to workplace inclusion generally and hiring practices specifically. Simply put, the company is committed to making A. O. Smith an inclusive and welcoming workplace where our employees feel a sense of belonging, and this is fundamental to our Values. This position was supported by our shareholders at last year’s meeting when over 90% of the shares voted were cast against an almost identical proposal from the proponent.

**Our Commitment to Inclusion in Our Values and Guiding Principles**

A. O. Smith developed its Guiding Principles to reinforce our Values when conducting our business