& Integrity

Lincoln Electric’s governance, compliance and strategic direction is overseen by our Board of Directors, executive officers and select senior management.

Our Board is comprised of experienced directors who offer a broad range of experience and skills that include: risk management, financial expertise, experience dealing with large, complex multinational organizations, scientific and technical expertise, operations, have led as chief executive officers of publicly listed companies, and who are independent. Our Board provides the highest level of oversight of our organization through four independent committees:

  • Audit
  • Finance
  • Compensation and Executive Compensation,
  • Nominating and Corporate Governance

Committee composition and charters may be found online here.

Our Board of Directors is comprised of 11 directors, including our Chairman and Chief Executive Officer. The Board has 10 independent directors as defined by NASDAQ, including an independent Lead Director.

Board Diversity: While we do not have a formal policy regarding Board diversity, the Board recognizes the value of gender and ethnic diversity and is proud that 30% of our independent directors are diverse, including two women board members and one minority board member. When considering Director candidates, the Board additionally focuses on ensuring the appropriate combination of professional experience, skills, and perspectives that meet our current and expected future needs.

Our governance framework can be found in our Governance section online here as well as in our Proxy Statement (PDF). Key policies addressing these important governance-related topics are provided on this site:

  • Code of Corporate Conduct and Ethics
  • Human Rights Policy
  • Anti-Corruption Policy
  • Environmental Health & Safety Policy
  • Supply Code of Conduct Policy
  • Slavery & Human Trafficking Disclosure
  • Conflict Minerals Policy
Summary of Our Board and Governance Practices:
Size of Board 11 Code of Ethics for Directors, Officers & employees Yes
Number of Independent Directors 10 Number of fully independent Board committees 4
Average age of Directors 62 Director attendance at Board & committee meetings >75%
Percent diverse (Independent Directors) 30% Board meetings held in 2018 5
New Directors in the last 5 years 3 Independent Directors meet without management Yes
Average tenure (years) 11.2 Stock ownership requirements for Directors Yes
Mandatory retirement age (75) Yes Annual Board & committee self-assessments Yes
Directors over boarded per ISS or GL No Succession planning & implementation process Yes
Lead Independent Director Yes Director onboarding & continued education Yes
Annual election of Directors Yes Material related party transaction with Directors No
Majority voting policy for Directors Yes Board oversight of Company Culture Yes
One share, one vote policy Yes Board review of environmental & risk management Yes
Frequency of say-on-pay advisory vote Annual Annual Shareholder engagement Yes

Compensation Practices: Key Policies & Environmental Goals:
Pay for performance Yes Employee Code of Conduct Yes
Compensation aligned with strategic goals and individual performance Yes Human Rights Policy Yes
Excessive perks No No Harassment Policy Yes
Robust stock ownership guidelines for named executive officers Yes Anti-Corruption Policy Yes
Claw back pay policy Yes Supplier Code of Conduct Yes
Double-trigger change-in-control provision Yes Environmental, Health & Safety Policy Yes
Anti-hedging and Anti-pledging policy Yes Environmental and Safety goals Yes

2019 World's Most Ethical Companies

2019 World's Most Ethical Companies

Lincoln Electric was named one of the 2019 World's Most Ethical Companies® by The Ethisphere Institute.

We were the only honoree in the Machine Tools & Accessories industry, underscoring our commitment to leading with integrity and prioritizing ethical business practices.

Next: Code of Conduct
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