Company: SXT
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001140361-25-008248
Chunk: 38

Company: SENSIENT TECHNOLOGIES CORP
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 38
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 program. Based upon the results of the shareholders’ frequency vote held in 2023 and consistent with our historical practice, we obtain shareholder advisory votes regarding executive compensation annually. The Committee considers the results of the recent shareholder advisory votes regarding executive compensation in determining its ongoing compensation policies and decisions. As part of its annual review of the Company’s executive compensation program, the Committee retains an outside compensation consultant who, among other things, prepares a report comparing Sensient’s executive compensation to the Comparable Company Data. The Committee began its consideration of annual cash and long-term equity incentive compensation at its July meeting when it received a report from its outside compensation consultant regarding executive compensation trends and the alignment of the Company’s compensation policies to the market. Then, at its October meeting, the Committee further reviewed the Company’s program with its outside compensation consultant and also reviewed the Comparable Company Data discussed below. Final review and determinations of salaries, target annual cash incentives, and long-term equity incentive compensation awards were made at the Committee’s December meeting. Additionally, in February 2025, the Committee set metrics for the 2025 annual cash incentive awards based upon the Company’s 2025 budget, which was approved by the Board at its February 2025 meeting. Establishing a stable and appropriate peer group for the Company remains challenging because Sensient has few direct competitors of similar size that are publicly traded in the United States. The colors and flavors industries are highly fragmented geographically and are diversified among product lines. In light of these challenges, Sensient has determined the appropriate peer group by considering:

| • | public companies of comparable size (based primarily on fiscal year 2023 revenues ranging from approximately $594 million to $2.3 billion, with a median of $1.9 billion; market capitalizations with a median of $1.6 billion; and most recently reported operating incomes with a median of $134 million); |

| • | public companies that operate in the specialty chemicals industry or an adjacent industry; |

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| • | public companies with which it competes for business, resources, and talent; |

| • | public companies with generally consistent financial performance or other business attributes (based primarily on gross, operating, and net profits; gross, operating, and net margins; full-time employees and total assets; and total shareholder return); and |

| • | public companies included in Sensient’s peer group by proxy advisors. |

The peer group is reviewed annually and while companies are added or removed as circumstances warrant, the Compensation Committee believes it is beneficial to