Company: AOS
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001193125-25-037641
Chunk: 18

Company: SMITH A O CORP
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 18
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 in any respect because, as described below, we have a Board in which a majority of our members consist of independent directors and all members of the Audit Committee, Personnel and Compensation Committee, and Nominating and Governance Committee are independent for SEC and NYSE purposes.

As described in the Corporate Governance Guidelines available on our website, www.aosmith.com, we apply the NYSE rules to determine director independence. The Nominating and Governance Committee (“Committee”) annually evaluates the independence of each director and makes recommendations to the Board. As part of this process, the Committee evaluates any related party transactions disclosed by directors in the detailed Directors’ and Officers’ Questionnaires completed annually by each director. There were no transactions above the reporting threshold for related party transactions under SEC rules. In making its recommendations, the Committee also applied the NYSE rules and evaluated any other legal, accounting and family relationships between directors and our company. In particular, the Board and Committee considered that director Victoria Holt is a director of Waste Management, Inc., from which we purchase services and supplies in arm’s length transactions in the ordinary course of business. Since her interest arises solely from her director position, the Board and the Committee determined that this relationship is not material and does not affect her independence. In addition, the Board and Committee considered that director nominee, Adrian Peace, is an executive officer of Modine Manufacturing Company and a director of Essentra plc, both from which we purchase services and supplies in arm’s length transactions in the ordinary course of business that preceded his nomination as a director. The Board and the Committee determined that this relationship is not material and does not affect his independence.

12A. O. Smith Corporation

Governance of Our Company

The Committee and the Board also considered that Mark Smith is a trustee of the Smith Family Voting Trust and that he and his descendants are also beneficiaries of material economic interests associated with the Class A Common Stock subject to this Trust. The members of the Committee and Board (other than Mr. Smith) concluded that such voting power and interests do not impair the independence of Mr. Smith and that the economic interests in stock of the company of which he and his descendants are beneficiaries align his interests with those of stockholders generally, consistent with NYSE Commentary to Rule 303A.02 (Independence Tests) which states that “the Exchange does not view ownership of even a significant amount of stock, by itself, as a bar to an independence finding.”

The Board has determined that Messrs. Brown, Fister, Larsen, Mapes