Company: DHR
Filing Date: 2025-03-26
Form Type: DEF 14A
Source: 0000313616-25-000081
Chunk: 37

Company: DANAHER CORP /DE/
Filing Date: 2025-03-26
Form: DEF 14A
Chunk 37
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 from continuing operations for the year ended December 31, 2024 as determined pursuant to GAAP, but excluding the same adjustment items reflected in the calculation of Adjusted EPS.

Compensation Governance

The Committee recognizes that the success of our executive compensation program over the long-term requires a robust framework of compensation governance. As a result, the Committee regularly reviews external executive compensation practices and trends and incorporates best practices into our executive compensation program. For highlights of key best practices we follow in our executive compensation program, please see "Proxy Summary — Executive Compensation Highlights — Compensation Governance."

Risk Considerations

Risk-taking is a necessary part of growing a business, and prudent risk management is necessary to deliver long-term, sustainable shareholder value. The Committee believes that the Company’s executive compensation program supports the objectives described above without encouraging inappropriate or excessive risk-taking. In reaching this conclusion, the Committee considered in particular the following risk-mitigation attributes of our 2024 executive compensation program.

| Attribute                                                                                                                                  |     | Key Risk Mitigating Effect                                                                                                                                                              |
| •Emphasis on long-term, equity-based compensation                                                                                          
 •Four-year vesting requirementfor stock options, and three-year performance period plus further two-year mandatory holding period for PSUs 
 •Rigorous, no-fault clawback policiesthat are triggered even in the absence of wrongdoing and were expanded in 2025                        |     | •Discourages risk-taking that produces short-term results at the expense of building long-term shareholder value                                                                        
 •Helps ensure executives realize their compensation over a time horizon consistent with achieving long-term shareholder value                                                           
 •Helps deter inappropriate actions and decisions that could harm Danaher and its key stakeholders                                                                                       |
| •Incentive compensation programs featuremultiple, complementary performance measures aligned with business strategy                        |     | •Mitigates incentive to over-perform with respect to any particular metric at the expense of other metrics                                                                              |
| •Cap on annual cash incentive compensation plan payments and on number of shares that may be earned under equity awards                    |     | •Mitigates incentive to over-perform with respect to any particular performance period at the expense of future periods                                                                 |
| •Stock ownership requirementsfor all executive officers                                                                                    
 •No hedgingof Danaher securities permitted                                                                                                 |     | •Aligns executives’ economic interests with the long-term interests of our shareholders                                                                                                 |
| •Annual cash incentive compensation awards are subject to Compensation Committee discretion                                                |     | •Mitigates risks associated with a strictly formulaic program