Page 9 - AMETEK Sustainability Report 2019 HTML

08 Sustainability at AMETEK Our Core 09 Sustainability at AMETEK

Compliance and Risk
Management Oversight
Sound Governance
One of the primary roles of AMETEK’s executive
AMETEK’s future depends on the actions leadership team and the Board of Directors is
we take today. Sound corporate governance is to assess and mitigate the various risks associated
key to enabling responsible decision-making with our businesses.
at the highest levels of the organization. This leads
to accountability and promotes public trust. To that end, AMETEK has designated an Enterprise
Risk Management (ERM) committee that meets quarterly
with the goal of maximizing the company’s ability to
achieve its business objectives. The committee, made
up of a cross-functional team including ERM experts
and senior business leaders, helps achieve this vision by
AMETEK’s Board of Directors and its com- creating a comprehensive approach to anticipate,
mittees play several important governance roles. identify, prioritize and manage material risks to our
These roles include working with management organization. Enterprise risk includes any significant event
to set the company’s strategy; evaluating the perfor- or circumstance that could impact the achievement of
mance and determining the compensation of our AMETEK Corporate Governance Highlights our business objectives, including strategic, operational,
Chief Executive Officer; approving compensation for reporting, compliance and reputational risks.
all other executive officers; and overseeing our risk
management programs. The primary responsibility of the ERM committee is to
ensure that sound policies, procedures and practices are
The Board is currently composed of nine directors, in place for the enterprise-wide management of
including three women. Eight of our nine Board We have a lead independent director to chair meetings of the company’s material risks. The committee is also
members are independent directors as defined by the the independent directors and act as a liaison between the responsible for reporting results of these activities
NYSE. The Board’s Audit, Compensation, and independent directors and our Chairman and CEO. to the Board of Directors and its Audit Committee. While
Corporate Governance/Nominating Committees each AMETEK’s Audit Committee has primary responsibility
consist entirely of independent directors. Director We have independent, experienced committee chairpersons. for overseeing risk management for AMETEK, our entire
nominations are made by the Corporate Governance/ Board, and each committee of the Board, plays
Nominating Committee. Our Board includes three female directors. an active role in risk management activities. The Audit
Committee receives quarterly reports from AMETEK’s
A majority vote is required for the election of directors in
Additional details on the Board, its committees and uncontested elections. management team and the entire Board receives a
their functions can be found in AMETEK’s Corporate risk management update at least annually. Risk
Governance Guidelines and in our annual proxy Proxy access is permitted for a shareholder, or a group of up management focus areas include, but are not limited to:
statement. Committee charters can also be found at to 20 shareholders owning at least 3% of our common stock
investors.ametek.com. for at least three years, to submit director nominees.
• Cyber Security
All members of our Audit Committee are considered • Response to Natural Disasters
financial experts. • Country Concentration Risk
• Geopolitical Risk
We have robust stock ownership guidelines for our Board • Product and Technology Risk
and senior management.

Executive compensation is benchmarked annually by a third
party and is designed in a manner to not promote excessive As an element of ERM oversight, AMETEK and our Board
risk taking. of Directors are committed to legal, regulatory and
environmental compliance. Within this framework, we have
The Board undertakes an annual self-evaluation process.
developed a robust set of internal policies and procedures,
which are made available to all employees to help monitor
and manage compliance across our enterprise.