SHERWIN WILLIAMS CO, DEF 14A filed on 3/8/2023
Proxy Statement (definitive)
v3.22.4
Cover
12 Months Ended
Dec. 31, 2022
Document Information [Line Items]  
Document Type DEF 14A
Amendment Flag false
Entity Information [Line Items]  
Entity Registrant Name THE SHERWIN-WILLIAMS COMPANY
Entity Central Index Key 0000089800
v3.22.4
Pay vs Performance Disclosure
12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Pay vs Performance Disclosure [Table]      
Pay vs Performance [Table Text Block]
Pay Versus Performance Table
 
Year
  (a)
 
 
Summary
Compensation
Table Total
for PEO
(b)
 
 
Compensation
Actually Paid
to PEO
(c)
(1)(2)
 
 
Average
Summary
Compensation
Table Total for
Non-PEO

Named
Executive
Officers
(d)
 
 
Average
  Compensation  
  Actually Paid to  
Non-PEO
Named
Executive
Officers
(e)
(1)(2)
 
 
 
Value of Initial Fixed $100
Investment Based On:
 
 
Net
Income
(h)
(4)
 
 
  Adjusted  
EPS
(i)
(5)
 
 
Total
Shareholder
Return
(f)
(3)
 
 
Peer Group
Total
Shareholder
Return
(g)
(3)
 
 
2022
   
 
 
 
$12,749,910
 
   
 
 
 
 $(19,713,828
 
)
   
 
 
 
$3,452,393
 
   
 
 
 
 $(760,145
 
   
 
 
 
$125.26
 
   
 
 
 
$133.55
 
   
 
 
 
$2,020,100,000
 
   
 
 
 
$7.92
 
 
2021
   
 
 
 
$15,843,760
 
   
 
 
 
 $48,088,376
 
   
 
 
 
$3,618,848
 
   
 
 
 
 $8,939,692
 
 
   
 
 
 
$184.10
 
   
 
 
 
$171.96
 
   
 
 
 
$1,864,400,000
 
   
 
 
 
$7.32
 
 
2020
   
 
 
 
$15,323,284
 
   
 
 
 
 $34,290,383
 
   
 
 
 
$4,096,941
 
   
 
 
 
 $8,156,681
 
 
   
 
 
 
$127.05
 
   
 
 
 
$119.46
 
   
 
 
 
$2,030,400,000
 
   
 
 
 
$7.36
 
 
1
 
John G. Morikis served as our principal executive officer (PEO) for the full year for each of 2022, 2021, and 2020. Our
non-PEO
named executive officers (NEOs) included: (a) for 2022, Allen J. Mistysyn, Heidi G. Petz, Justin T. Binns, and Karl J. Jorgenrud; (b) for 2021, Allen J. Mistysyn, Heidi G. Petz, Mary L. Garceau, Justin T. Binns, and Peter J. Ippolito; and (c) for 2020, Allen J. Mistysyn, Mary L. Garceau, Peter J. Ippolito, and David B. Sewell.
 
2
 
For each year, the values included in these columns for the compensation actually paid to our PEO and the average compensation actually paid to our
non-PEO
NEOs reflect the following adjustments to the values included in columns (b) and (d), respectively:
 
 
PEO
 
 
2022
 
 
2021
 
 
2020
       
Summary Compensation Table (SCT) Total for PEO (column (b))
      $12,749,910       $ 15,843,760       $ 15,323,284     
       
- aggregate change in actuarial present value of pension benefits
      -0-         -0-         -0-     
       
+ service cost of pension benefits
      -0-         -0-         -0-     
       
+ prior service cost of pension benefits
      -0-         -0-         -0-     
       
- SCT “Stock Awards” column value
      5,357,573         5,895,615         5,742,396     
       
- SCT “Option Awards” column value
      4,248,445         4,496,806         3,904,509     
       
+
year-end
fair value of equity awards granted in the covered year that were outstanding and unvested as of the covered
year-end
      9,783,283         24,320,152         19,235,117     
       
-/+ year-over-year change in fair value of equity awards granted in prior years that are outstanding and unvested as of the covered
year-end
      (20,046,896 )       17,756,334         7,552,919     
       
+ vesting date fair value of equity awards granted and vested in the covered year
      -0-         -0-         -0-     
       
-/+ year-over-year change in fair value of equity awards granted in prior years that vested in the covered year
      (12,594,107 )       560,551         1,825,968     
       
- fair value as of prior-year end of equity awards granted in prior years that failed to vest in the covered year
      -0-         -0-         -0-     
       
+ dollar value of dividends/earnings paid on equity awards in the covered year
      -0-         -0-         -0-     
       
+ excess fair value for equity award modifications
      -0-         -0-         -0-     
       
Compensation Actually Paid to PEO (column (c))
      $(19,713,828)       $ 48,088,376       $ 34,290,383     
 
 
Average for
Non-PEO
NEOs
 
 
2022
 
 
2021
 
 
2020
       
Average SCT Total for
Non-PEO
NEOs (column (d))
      $3,452,393       $ 3,618,848       $ 4,096,941  
       
- aggregate change in actuarial present value of pension benefits
      -0-         -0-         -0-  
       
+ service cost of pension benefits
      -0-         -0-         -0-  
       
+ prior service cost of pension benefits
      -0-         -0-         -0-  
       
- SCT “Stock Awards” column value
      1,083,784         1,074,291         1,239,836  
       
- SCT “Option Awards” column value
      877,473         865,948         837,232  
       
+
year-end
fair value of equity awards granted in the covered year that were outstanding and unvested as of the covered
year-end
      2,000,614         4,500,593         4,146,248  
       
-/+ year-over-year change in fair value of equity awards granted in prior years that are outstanding and unvested as of the covered
year-end
      (2,812,473 )       2,596,782         1,556,400  
       
+ vesting date fair value of equity awards granted and vested in the covered year
      -0-         -0-         -0-  
       
-/+ year-over-year change in fair value of equity awards granted in prior years that vested in the covered year
      (1,439,422 )       163,708         434,160  
       
- fair value as of prior-year end of equity awards granted in prior years that failed to vest in the covered year
      -0-         -0-         -0-  
       
+ dollar value of dividends/earnings paid on equity awards in the covered year
      -0-         -0-         -0-  
       
+ excess fair value for equity award modifications
      -0-         -0-         -0-  
       
Average Compensation Actually Paid to
Non-PEO
NEOs (column (e))
         $(760,145)       $ 8,939,692       $ 8,156,681  
 
3
 
For each year, total shareholder return for the Company and the peer group was calculated in accordance with Item 201(e) and Item 402(v) of Regulation
S-K.
For purposes of this pay versus performance disclosure, our peer group is the same peer group used for purposes of the performance graph included in the Company’s Annual Reports on Form
10-K
for each of the fiscal years ended December 31, 2022, 2021, and 2020 and consists of the following entities: Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF SE, Genuine Parts Company, H.B. Fuller Company, The Home Depot, Inc., Lowe’s Companies, Inc., Masco Corporation, Newell Brands Inc., PPG Industries, Inc., RPM International Inc., and Stanley Black & Decker, Inc. (for purposes of this section only, the Peer Group).
 
4
 
Net income is rounded to the nearest hundred thousand.
 
5
 
Adjusted EPS is calculated as described in Appendix A.
 
   
Company Selected Measure Name Adjusted EPS    
Named Executive Officers, Footnote [Text Block]
 
1
 
John G. Morikis served as our principal executive officer (PEO) for the full year for each of 2022, 2021, and 2020. Our
non-PEO
named executive officers (NEOs) included: (a) for 2022, Allen J. Mistysyn, Heidi G. Petz, Justin T. Binns, and Karl J. Jorgenrud; (b) for 2021, Allen J. Mistysyn, Heidi G. Petz, Mary L. Garceau, Justin T. Binns, and Peter J. Ippolito; and (c) for 2020, Allen J. Mistysyn, Mary L. Garceau, Peter J. Ippolito, and David B. Sewell.
   
Peer Group Issuers, Footnote [Text Block]
3
 
For each year, total shareholder return for the Company and the peer group was calculated in accordance with Item 201(e) and Item 402(v) of Regulation
S-K.
For purposes of this pay versus performance disclosure, our peer group is the same peer group used for purposes of the performance graph included in the Company’s Annual Reports on Form
10-K
for each of the fiscal years ended December 31, 2022, 2021, and 2020 and consists of the following entities: Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF SE, Genuine Parts Company, H.B. Fuller Company, The Home Depot, Inc., Lowe’s Companies, Inc., Masco Corporation, Newell Brands Inc., PPG Industries, Inc., RPM International Inc., and Stanley Black & Decker, Inc. (for purposes of this section only, the Peer Group).
   
PEO Total Compensation Amount $ 12,749,910 $ 15,843,760 $ 15,323,284
PEO Actually Paid Compensation Amount $ (19,713,828) 48,088,376 34,290,383
Adjustment To PEO Compensation, Footnote [Text Block]
 
 
PEO
 
 
2022
 
 
2021
 
 
2020
       
Summary Compensation Table (SCT) Total for PEO (column (b))
      $12,749,910       $ 15,843,760       $ 15,323,284     
       
- aggregate change in actuarial present value of pension benefits
      -0-         -0-         -0-     
       
+ service cost of pension benefits
      -0-         -0-         -0-     
       
+ prior service cost of pension benefits
      -0-         -0-         -0-     
       
- SCT “Stock Awards” column value
      5,357,573         5,895,615         5,742,396     
       
- SCT “Option Awards” column value
      4,248,445         4,496,806         3,904,509     
       
+
year-end
fair value of equity awards granted in the covered year that were outstanding and unvested as of the covered
year-end
      9,783,283         24,320,152         19,235,117     
       
-/+ year-over-year change in fair value of equity awards granted in prior years that are outstanding and unvested as of the covered
year-end
      (20,046,896 )       17,756,334         7,552,919     
       
+ vesting date fair value of equity awards granted and vested in the covered year
      -0-         -0-         -0-     
       
-/+ year-over-year change in fair value of equity awards granted in prior years that vested in the covered year
      (12,594,107 )       560,551         1,825,968     
       
- fair value as of prior-year end of equity awards granted in prior years that failed to vest in the covered year
      -0-         -0-         -0-     
       
+ dollar value of dividends/earnings paid on equity awards in the covered year
      -0-         -0-         -0-     
       
+ excess fair value for equity award modifications
      -0-         -0-         -0-     
       
Compensation Actually Paid to PEO (column (c))
      $(19,713,828)       $ 48,088,376       $ 34,290,383     
 
   
Non-PEO NEO Average Total Compensation Amount $ 3,452,393 3,618,848 4,096,941
Non-PEO NEO Average Compensation Actually Paid Amount $ (760,145) 8,939,692 8,156,681
Adjustment to Non-PEO NEO Compensation Footnote [Text Block]
 
Average for
Non-PEO
NEOs
 
 
2022
 
 
2021
 
 
2020
       
Average SCT Total for
Non-PEO
NEOs (column (d))
      $3,452,393       $ 3,618,848       $ 4,096,941  
       
- aggregate change in actuarial present value of pension benefits
      -0-         -0-         -0-  
       
+ service cost of pension benefits
      -0-         -0-         -0-  
       
+ prior service cost of pension benefits
      -0-         -0-         -0-  
       
- SCT “Stock Awards” column value
      1,083,784         1,074,291         1,239,836  
       
- SCT “Option Awards” column value
      877,473         865,948         837,232  
       
+
year-end
fair value of equity awards granted in the covered year that were outstanding and unvested as of the covered
year-end
      2,000,614         4,500,593         4,146,248  
       
-/+ year-over-year change in fair value of equity awards granted in prior years that are outstanding and unvested as of the covered
year-end
      (2,812,473 )       2,596,782         1,556,400  
       
+ vesting date fair value of equity awards granted and vested in the covered year
      -0-         -0-         -0-  
       
-/+ year-over-year change in fair value of equity awards granted in prior years that vested in the covered year
      (1,439,422 )       163,708         434,160  
       
- fair value as of prior-year end of equity awards granted in prior years that failed to vest in the covered year
      -0-         -0-         -0-  
       
+ dollar value of dividends/earnings paid on equity awards in the covered year
      -0-         -0-         -0-  
       
+ excess fair value for equity award modifications
      -0-         -0-         -0-  
       
Average Compensation Actually Paid to
Non-PEO
NEOs (column (e))
         $(760,145)       $ 8,939,692       $ 8,156,681  
   
Compensation Actually Paid vs. Total Shareholder Return [Text Block]
Pay Versus Performance Relationship Descriptions
The following graphical comparisons describe the relationships between certain figures included in the Pay Versus Performance Table for each of 2022, 2021, and 2020, including: (a) a comparison between our cumulative total shareholder return and the total shareholder return of the Peer Group; and (b) comparisons between (i) the compensation actually paid to the PEO and the average compensation actually paid to our
non-PEO
NEOs and (ii) each of the performance measures set forth in columns (f), (h) and (i) of the Pay Versus Performance Table.
 
 
 

 
 
   
Compensation Actually Paid vs. Net Income [Text Block]

   
Compensation Actually Paid vs. Company Selected Measure [Text Block]

 
 
   
Tabular List [Table Text Block]
Tabular List of Financial Performance Measures
The following table lists the financial performance measures that we believe represent the most important financial performance measures used to link compensation actually paid to our NEOs for 2022 to Company performance.
 
    
 
Morikis
  
 
Mistysyn
  
 
Petz
  
 
Binns
  
 
Jorgenrud
           
Annual Cash Incentive
   Net Sales    Net Sales    Net Sales    TAG Sales    PCG Sales
   Adjusted EPS    Adjusted EPS    Adjusted EPS    TAG PBT    PCG PBT
   Adjusted FCF    Adjusted FCF    Adjusted FCF    TAG RONAE    PCG RONAE
           
Long-Term Equity Incentive
   Adjusted EPS    Adjusted EPS    Adjusted EPS    Adjusted EPS    Adjusted EPS
   Adjusted RONAE    Adjusted RONAE    Adjusted RONAE    Adjusted RONAE    Adjusted RONAE
   
Total Shareholder Return Amount $ 125.26 184.1 127.05
Peer Group Total Shareholder Return Amount 133.55 171.96 119.46
Net Income (Loss) $ 2,020,100,000 $ 1,864,400,000 $ 2,030,400,000
Company Selected Measure Amount 0.0792 0.0732 0.0736
PEO Name John G. Morikis    
Morikis [Member] | Measure [Axis]: 1      
Pay vs Performance Disclosure [Table]      
Measure Name Net Sales    
Morikis [Member] | Measure [Axis]: 2      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EPS    
Morikis [Member] | Measure [Axis]: 3      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted FCF    
Morikis [Member] | Measure [Axis]: 4      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EPS    
Morikis [Member] | Measure [Axis]: 5      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted RONAE    
Mistysyn [Member] | Measure [Axis]: 1      
Pay vs Performance Disclosure [Table]      
Measure Name Net Sales    
Mistysyn [Member] | Measure [Axis]: 2      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EPS    
Mistysyn [Member] | Measure [Axis]: 3      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted FCF    
Mistysyn [Member] | Measure [Axis]: 4      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EPS    
Mistysyn [Member] | Measure [Axis]: 5      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted RONAE    
Petz [Member] | Measure [Axis]: 1      
Pay vs Performance Disclosure [Table]      
Measure Name Net Sales    
Petz [Member] | Measure [Axis]: 2      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EPS    
Petz [Member] | Measure [Axis]: 3      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted FCF    
Petz [Member] | Measure [Axis]: 4      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EPS    
Petz [Member] | Measure [Axis]: 5      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted RONAE    
Binns [Member] | Measure [Axis]: 4      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EPS    
Binns [Member] | Measure [Axis]: 5      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted RONAE    
Binns [Member] | Measure [Axis]: 6      
Pay vs Performance Disclosure [Table]      
Measure Name TAG Sales    
Binns [Member] | Measure [Axis]: 7      
Pay vs Performance Disclosure [Table]      
Measure Name TAG PBT    
Binns [Member] | Measure [Axis]: 8      
Pay vs Performance Disclosure [Table]      
Measure Name TAG RONAE    
Jorgenrud [Member] | Measure [Axis]: 4      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EPS    
Jorgenrud [Member] | Measure [Axis]: 5      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted RONAE    
Jorgenrud [Member] | Measure [Axis]: 9      
Pay vs Performance Disclosure [Table]      
Measure Name PCG Sales    
Jorgenrud [Member] | Measure [Axis]: 10      
Pay vs Performance Disclosure [Table]      
Measure Name PCG PBT    
Jorgenrud [Member] | Measure [Axis]: 11      
Pay vs Performance Disclosure [Table]      
Measure Name PCG RONAE    
PEO [Member] | Aggregate Change In Actuarial Present Value Of Pension Benefits [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount $ 0 $ 0 $ 0
PEO [Member] | Service Cost Of Pension Benefits [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
PEO [Member] | Prior Service Cost Of Pension Benefits [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
PEO [Member] | SCT Stock Awards Column Value [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 5,357,573 5,895,615 5,742,396
PEO [Member] | SCT Option Awards Column Value [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 4,248,445 4,496,806 3,904,509
PEO [Member] | Yearend Fair Value Of Equity Awards Granted In The Covered Year That Were Outstanding And Unvested As Of The Covered Yearend [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 9,783,283 24,320,152 19,235,117
PEO [Member] | Yearover year Change In Fair Value Of Equity Awards Granted In Prior Years That Are Outstanding And Unvested As Of The Covered Yearend [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (20,046,896) 17,756,334 7,552,919
PEO [Member] | Vesting Date Fair Value Of Equity Awards Granted And Vested In The Covered Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
PEO [Member] | Yearover Year Change In Fair Value Of Equity Awards Granted In PriorY ears That Vested In The Covered Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (12,594,107) 560,551 1,825,968
PEO [Member] | Fair Value As Of Prior Year End Of Equity Awards Granted In Prior Years That Failed To Vest In The Covered Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
PEO [Member] | Dollar Value Of Dividends Earnings Paid On Equity Awards In The Covered Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
PEO [Member] | Excess Fair Value For Equity Award Modifications [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
Non-PEO NEO [Member] | Aggregate Change In Actuarial Present Value Of Pension Benefits [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
Non-PEO NEO [Member] | Service Cost Of Pension Benefits [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
Non-PEO NEO [Member] | Prior Service Cost Of Pension Benefits [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
Non-PEO NEO [Member] | SCT Stock Awards Column Value [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 1,083,784 1,074,291 1,239,836
Non-PEO NEO [Member] | SCT Option Awards Column Value [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 877,473 865,948 837,232
Non-PEO NEO [Member] | Yearend Fair Value Of Equity Awards Granted In The Covered Year That Were Outstanding And Unvested As Of The Covered Yearend [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 2,000,614 4,500,593 4,146,248
Non-PEO NEO [Member] | Yearover year Change In Fair Value Of Equity Awards Granted In Prior Years That Are Outstanding And Unvested As Of The Covered Yearend [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (2,812,473) 2,596,782 1,556,400
Non-PEO NEO [Member] | Vesting Date Fair Value Of Equity Awards Granted And Vested In The Covered Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
Non-PEO NEO [Member] | Yearover Year Change In Fair Value Of Equity Awards Granted In PriorY ears That Vested In The Covered Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (1,439,422) 163,708 434,160
Non-PEO NEO [Member] | Fair Value As Of Prior Year End Of Equity Awards Granted In Prior Years That Failed To Vest In The Covered Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
Non-PEO NEO [Member] | Dollar Value Of Dividends Earnings Paid On Equity Awards In The Covered Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
Non-PEO NEO [Member] | Excess Fair Value For Equity Award Modifications [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount $ 0 $ 0 $ 0