Company: SYY
Filing Date: 2025-10-02
Form Type: DEF 14A
Source: 0000096021-25-000147
Chunk: 76

Company: SYSCO CORP
Filing Date: 2025-10-02
Form: DEF 14A
Chunk 76
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 Sysco should mandate that different individuals hold the positions of Chair and CEO or that such an inflexible policy would benefit Sysco or its stockholders. Our Guidelines provide the Board with the flexibility to determine the leadership structure that best serves the interests of Sysco and our stakeholders, taking into account the unique circumstances facing the Company at any particular time. The Board annually evaluates its leadership structure to assess whether any changes would benefit stockholders. The Chair and CEO roles are distinct under our governing documents, and the Board is free to elect an independent Chair or a current or former employee or other non- independent director to serve as Chair. When an independent Chair is not selected, the Board annually elects a Lead Independent Director to serve from among the independent directors. As the stockholder proposal acknowledges, the Board has exercised this flexibility and selected various leadership structures since its founding in 1969. Sysco has had numerous Chairs who were not the CEO - including independent Chairs and executive Chairs. Most recently, when Mr. Hourican was appointed CEO of Sysco in 2020, the Board chose to elect a separate Executive Chair. After almost five years as CEO, and much thoughtful consideration, the Board decided that Mr. Hourican is best positioned to lead the Board as its Chair. The Board believes that, at this time, the combined Chair and CEO role has important advantages, including Mr. Hourican’s deep understanding of Sysco’s business, day-to-day operations and strategy as well as enhancing Board efficiency and effectiveness. Mandating that separate individuals serve as Chair and CEO would lock the Board into a “one-size-fits-all” approach that does not allow the Board to adapt or change. While the Board has determined that currently the Chair and CEO should be held by the same person, the Board has come to a different conclusion in the past and could come to a different conclusion in the future. Sysco’s Lead Independent Director provides strong independent leadership and robust oversight. When the Board combines the CEO and Chair roles, it is required to appoint a Lead Independent Director. The Board believes that this structure, which calls for a strong, independent and highly experienced Lead Independent Director with well-defined responsibilities, working alongside Sysco’s experienced and engaged independent directors, provides Sysco with effective oversight. Our current Lead Independent Director, Mr. Larry C. Glasscock, has served as lead director or chair of the board at three public companies (Simon Property Group, Zimmer Biomet Holdings, WellPoint, Inc. (now Elevance, Inc.)). In addition, he held