CR
DRIVING
BREAKTHROUGH
PERFORMANCE
2024 NOTICE OF ANNUAL MEETING AND PROXY STATEMENT
CRANE COMPANY
100 FIRST STAMFORD PLACE
STAMFORD, CONNECTICUT 06902
Dear Fellow Stockholders:
This Proxy Statement and the 2023 Annual Report to Stockholders are available at www.investors.craneco.com
Crane Company cordially invites you to attend its virtual Annual Meeting of Stockholders, which will be held online via live webcast at 10:00 a.m., Eastern Daylight Time, on Monday, April 22, 2024. There will be no physical location for the Annual Meeting. Crane Company stockholders will be able to attend the Annual Meeting online, and, with a control number appearing on your proxy card, vote shares electronically and submit questions during the Annual Meeting by visiting meetnow.global/MK7ZLCR at the meeting date and time.
The Notice of Annual Meeting and Proxy Statement on the following pages describe the matters to be presented at the meeting. Management will report on current operations, and there will be an opportunity to ask questions regarding Crane Company and its activities.
It is important that your shares be represented at the meeting, regardless of the size of your holdings. If you are unable to attend, I urge you to participate by voting your shares by proxy. You may do so by using the internet address or the toll-free telephone number set forth in this Proxy Statement, or by requesting a printed copy of the proxy materials and completing and returning by mail the proxy card you receive in response to your request.
Also, I have the pleasure and privilege of informing you that the Board of Directors has unanimously decided to appoint Crane Company's current President and Chief Executive Officer, Max H. Mitchell, as Chairman of the Board effective as of the annual meeting on April 22, 2024. Max has skillfully led Crane Company over the past 10 years to new heights, achieving record results across every metric, creating substantial value for our stockholders, and actively reshaping the portfolio to position us for continued growth in the years to come.
It has been my honor to serve as the Company's Chairman over the past several years and I could not be more confident in Max's ability to succeed me as Chairman of the Board.
Sincerely,
James L.L. Tullis
Max H. Mitchell
Chairman of the Board
Incoming Chairman of the Board, and
March 7, 2024
current President and Chief Executive Officer
1
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
APRIL 22, 2024
To the Stockholders of Crane Company:
The 2024 ANNUAL MEETING OF STOCKHOLDERS OF CRANE COMPANY will be held virtually for the following purposes:
WHEN:
April 22, 2024 Monday 10:00 a.m. Eastern Daylight Time
WHERE:
Online via live webcast at meetnow.global/MK7ZLCR
HOW TO VOTE:
By Phone
800-652-VOTE (8683) in the United States, United States territories, and Canada.
By Mail
Complete, sign, and return the proxy card.
By Internet
www.envisionreports.com/cr
Live Webcast
Stockholders at the close of business on February 26, 2024, are entitled to vote at the Annual Meeting virtually.
By Scanning
You can vote your shares online by scanning the QR code on your proxy card.
Board
Proposal
Recommendation
Item 1
To elect nine directors to serve for one-year terms
FOR each director
until the annual meeting of stockholders in 2025
▶
Page 10
Item 2
To consider and vote on a proposal to ratify the
FOR
selection of Deloitte & Touche LLP as independent
▶
Page 36
auditors for Crane Company for 2024
Item 3
To consider and vote on a proposal to approve, by a
FOR
non-binding advisory vote, the compensation paid by
▶
Page 40
the Company to certain executive officers
Item 4
To consider and vote on a proposal to approve, by a
EVERY YEAR
non-binding advisory vote, the frequency with which
▶
Page 86
we will ask stockholders to approve the compensation
paid by the Company to certain executive officers
In addition, any other business properly presented may be acted upon at the meeting.
In order to assure a quorum at the virtual 2024 Annual Meeting of Stockholders of Crane Company (the "Annual Meeting"), it is important that stockholders who do not expect to attend virtually vote by using the internet address or the toll-free telephone number listed in this Proxy Statement. If you have requested paper copies of the proxy materials, you can vote by completing and returning the proxy card enclosed in those materials.
The Board of Directors has fixed the close of business on February 26, 2024, as the record date for the meeting. Stockholders at that date and time are entitled to notice of and to vote at the Annual Meeting or any postponement or adjournment of the Annual Meeting. Each share is entitled to one vote. You will be able to attend and participate in the Annual Meeting online, vote your shares electronically and submit your questions prior to and during the meeting by visiting: meetnow.global/MK7ZLCR at the meeting date and time described in this Proxy Statement. There is no physical location for the Annual Meeting.
This Notice of Annual Meeting of Stockholders and related Proxy Statement are first being distributed or made available to stockholders on or about March 7, 2024.
We previously mailed a Notice of Internet Availability of Proxy Materials to all Crane Company stockholders as of the record date. The notice advised such stockholders that they could view the Proxy Statement and Annual Report online at www.envisionreports.com/cr, or request in writing a paper or e-mail copy of the proxy materials at no cost.
A complete list of stockholders as of the record date will be open to examination by any stockholder during regular business hours at the offices of Crane Company, 100 First Stamford Place, Stamford, CT 06902, for a period of 10 days prior to the meeting.
By Order of the Board of Directors,
Anthony M. D'Iorio
Secretary
March 7, 2024
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PROXY SUMMARY
Director Nominees
Crane
Company
Crane Company Committees
Director
AC
NGC
EC
MOCC
Name and Profession
Age
Since
Martin R. Benante
71
2023
Retired Chairman of the Board and Chief
Executive Officer, Curtiss-Wright Corporation
Sanjay Kapoor
63
2023
Retired Executive Vice President and CFO,
Spirit AeroSystems, Inc.
Ronald C. Lindsay
65
2023
Retired Chief Operating Officer,
Eastman Chemical Company
Ellen McClain
59
2023
Chief Executive Officer and President, Year Up
Charles G. McClure, Jr.
70
2023
Managing Partner, Michigan Capital Advisors
Max H. Mitchell
60
2023
President and Chief Executive Officer, Crane
Company
Jennifer M. Pollino
59
2023
Executive Coach and Consultant, JM Pollino LLC
John S. Stroup
57
2023
Operating Advisor, Clayton, Dubilier & Rice
James L. L. Tullis
76
2023
Chairman, Tullis Health Investors, Inc.
AC
Audit Committee
NGC
Nominating and Governance Committee
Chair
Member
EC
Executive Committee
MOCC
Management Organization and Compensation Committee
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Proxy Summary
Corporate Governance Highlights
Basis of Presentation
On April 3, 2023, we completed our previously announced separation from Crane Holdings, Co. ("Crane Holdings"), and were launched as an independent, publicly traded company. Upon separation we continued to hold and to operate Crane Holdings' former Aerospace & Electronics and Process Flow Technologies global growth platforms, as well as its Engineered Materials segment, under the leadership of our Chief Executive Officer, Max H. Mitchell, who served as the Chief Executive Officer of Crane Holdings since 2014.
Recent Governance Enhancements
As stated in our Corporate Governance Guidelines, the Board is responsible for helping to create a culture of high ethical standards and is committed to continually improving its corporate governance process, practices, and procedures. Accordingly, the Board has adopted the following best practices in corporate governance:
Board renewal and composition: In connection with the separation transaction, the members of the Crane Company Board were chosen with the intention of providing an optimal balance between continuity (by including a number of Crane Holdings, Co. directors), with independence and relevant market focused experience to drive organic and inorganic growth. The Board, specifically through the Nominating and Governance Committee, continually evaluates the skills, expertise, integrity, diversity, and other qualities believed to enhance the Board's ability to manage and direct the affairs and business of the Company.
Lead Independent Director role: At a regular Board meeting in January 2024, the Board unanimously determined that it would be in the best interests of the Company and its stockholders to combine the Chairman and CEO roles and to appoint a Lead Independent Director, both effective at the Annual Meeting. In making this determination, the Board considered the Company's recent separation from Crane Holdings, and the benefit of Board leadership under
Mr. Mitchell, who has served as the Company's Chief Executive Officer since 2014 (inclusive of his time as Chief Executive Officer of Crane Holdings), accumulated extensive day-to-day knowledge of the Company's operations and long term needs, and driven its successful portfolio reshaping, strategic plan, and growth initiatives during his tenure.
Ongoing Board Governance Practices
4
Proxy Summary
2023 Performance Highlights
Mr. Mitchell, along with the Board of Directors, executed on a series of major strategic actions over the last three years which, combined with the strong operating performance that Mr. Mitchell drove in the Company's businesses, have created significant value for equity investors in Crane Company and its predecessor company. Specifically, these actions generated approximately $5.5 billion in equity value (market capitalization) comparing Crane Holdings' equity value on December 31, 2020, to the combined equity value of both post-separation companies (Crane Company and Crane NXT, Co.) on December 31, 2023, an increase of 120%.
Crane Company Market Capitalization
Substantial Growth in Market Capitalization ($ Billions)
$10.1
+120%
Crane
$6.0$5.7Company
$4.6
(CR)
$6.8 Billion
Crane NXT,
Co. (CXT)
$3.3 Billion
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2023
We believe this equity value creation is attributable, primarily, to five strategic actions from 2021 through 2023:
In addition to these strategic actions, the three business segments that now comprise Crane Company delivered very strong financial results in 2023.
5
Proxy Summary
Strong Financial Results Despite Ongoing Market Challenges
Final 2023 financial and operational results, adjusted for strategic actions, were substantially above our original financial targets for the year, driven by a combination of a better-than-expected recovery in certain end markets, consistent and strong operational execution, and substantial benefits from strategic growth investments. Specifically:
2023 Compensation Highlights
Compensation Best Practices
The Management Organization and Compensation Committee is firmly committed to implementing an executive compensation program that aligns management and stockholder interests, encourages executives to drive sustainable stockholder value creation, and helps retain key personnel. Key elements of our pay practices are as follows:
WHAT WE DO
WHAT WE DON'T DO
6
Proxy Summary
Aspects of Compensation Unique to the Separation Transaction
This Proxy Statement summarizes the compensation decisions made by Crane Holdings in 2023 through the completion of the separation of Crane Company from Crane Holdings on April 3, 2023, and the compensation decisions made by Crane Company after the separation transaction. These compensation decisions reflect the relative performance period of the respective companies, and the compensation paid to the respective NEOs during that fiscal year period for the intensive effort to prepare for and complete the separation. See "Impact of the Separation Transaction on NEO Compensation Disclosures" on page 41. In light of the then pending separation of Crane Holdings, the Crane Holdings' board of directors determined in January 2023 to hold Mr. Mitchell's compensation flat for 2023, to be reassessed by the Board of Crane Company following separation. Mr. Mitchell successfully led Crane Company through the separation integration, which created substantial equity value for our stockholders.
Pay for Performance Alignment
85% of CEO Target Pay is Performance-Based
The following table summarizes the major elements of our CEO compensation program, which is designed to link pay and performance (based on 2023 pay to Crane Company's CEO by Crane Holdings, Co. prior to, and by Crane Company following, the separation).
Compensation Element
Key Characteristics
Determined based on overall performance
Base Salary
and competitive compensation data
Payment based on achievement of
Annual
Company-wide performance goals relative to
Incentive Plan
pre-established targets
2023 targets: earnings per share and free cash flow
Payment based on relative total stockholder
Performance-
return versus S&P Midcap 400 Capital Goods
Based Restricted
Index constituents
Share Units (PRSUs)
Earned shares vest upon conclusion of the
three-year performance period
Value realized dependent on Company
stock price performance
Grants based on individual performance
Stock Options
Grants vest ratably over four years
Value realized dependent on Company
stock price appreciation
Grants based on individual performance
Time-Based Restricted
Grants vest ratably over four years
Share Units
Value realized varies with Company stock price
performance
13%15%
17%
CHIEF EXECUTIVE
18%
OFFICER
37%
85%
Performance-Based Pay for CEO
Totals may not sum due to rounding.
7
Proxy Summary
Our Philanthropy, Sustainability and Equality Highlights
Philanthropy
MORE THAN
21,500 volunteer hours
OVER
$575,000 volunteer wages
provided by Crane associates to help dozens of organizations across 19 countries
APPROXIMATELY
$19.8
million disbursed by
the Crane Fund to more than 1,000 former associates and their family members globally
MORE THAN
$5
million disbursed by the Crane
Fund for Widows and Children and the Crane Foundation to approximately 960 charitable organizations and educational institutions around the world
Sustainability
SAFETY RATE
1 2 of
industry average in 2023
WASTE GENERATION
15%
targeted intensity reduction by 2030
ELECTRICITY CONSUMPTION
20%
targeted intensity reduction by 2030
EMISSIONS
20%
targeted intensity reduction by 2030
WATER CONSUMPTION
10%
targeted intensity reduction by 2030
Equality
44%
29%
23% 25%
24%
21%
EXECUTIVES
MANAGERS
INDIVIDUAL CONTRIBUTORS
Ethnically Diverse (U.S. Only)
Women (Global)
See additional details on the Company's efforts and performance with respect to philanthropy, sustainability, and equality, at www.craneco.com/pse.
8
Disclaimer
Crane Company published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2024 04:04:01 UTC.