Setting the direction for our
company through our responsible
governance practices and our
approach to sustainability.

Governance & Approach
ESCO Technologies’ corporate governance program forms a strong foundation for our work. We believe that capable, dedicated leadership enhances our risk management and creates a culture for success among our team members.
Board of Directors

ESCO carefully selects members for our Board of Directors to guide our team in achieving sustained competitive advantages. Our Board members bring a diversity of experience in technology, energy, aerospace, electronics and commercial manufacturing. Our CEO Victor L. Richey also serves as Chairman of the Board. His dual guidance allows ESCO to speak with one voice and improves the clarity of leadership roles and responsibilities.

Of the directors, five of seven are independent of ESCO management. The Board appoints a lead director among the independent directors. The lead director performs the duties assigned within our Corporate Governance Guidelines.

A full list of the names and occupations of our board members is available through our Investor Center. Additionally, ESCO’s Corporate Governance Guidelines detail our practices to ensure the integrity and steadfastness of our Board.
These include:

  • Board Composition
  • Functions of the Board
  • Board Meetings
  • Board Committees
  • Board Compensation
  • Selection of New Directors
  • Management Succession and Review

Our Board of Directors has four standing committees:

  1. Executive Committee
  2. Nominating and Corporate Governance Committee
  3. Audit and Finance Committee
  4. Human Resources and Compensation Committee

We require 100% independent directors on all committees except for the Executive Committee. Our Nominating and Governance Committee recommends corporate governance policies and actions, which include items pertaining to sustainability. Our full Board then reviews and approves these recommendations. Full descriptions of the responsibilities for three of the four committees are available through our Investor Center.

Management Team

The ESCO Technologies management team sets the direction for our continued success. The team monitors risks on a day-to-day basis that could affect our progress towards innovation, market leadership and expansion. Our general focus areas are Financial and Reporting, Legal and Compliance and Operational and Strategic. ESCO management regularly advises our Board of Directors on potential risks identified and our plan to mitigate or minimize these risks.

We structure our employee compensation plan to reflect an individual's tenure, position and performance. ESCO commits to fair remuneration and compensates all employees and executives at competitive rates consistent with the market.

Victor L. Richey (center) Chairman, Chief Executive Officer and President
Gary E. Muenster (right) Executive Vice President and Chief Financial Officer
Alyson S. Barclay (left) Senior Vice President, Secretary and General Counsel

Sustainability Governance & Materiality Assessment

We expect all ESCO employees to hold themselves accountable for conducting business responsibly. As part of our high standards, we develop strong governance for sustainability from the top down to ensure the attainment of our goals.

Members of our corporate management team lead our sustainability initiatives. In FY16, we conducted a materiality assessment to identify and prioritize our most important environmental, social and governance topics. For the purposes of our sustainability program and reporting, we define materiality to include the viewpoints for all our internal and external stakeholder groups. As part of the assessment, we identified key stakeholder groups, interviewed specific stakeholders and reviewed a comprehensive set of internal and external sources. These actions created a robust data set, which we analyzed through a rigorous scoring process.

Our materiality matrix (below) depicts the aggregate findings of our materiality assessment. All of the topics shown on the matrix are important. Importance does not indicate positive or negative impact. Rather, important topics demonstrate that our stakeholders provided deeper evidence of overall impact versus other potential topics. Our matrix illustrates the relative importance of each topic based upon the evidence gathered from our internal and external stakeholders. Topics positioned further from the origin of the X and Y axes are more important than topics positioned closer to the origin. The arches on the chart segment these topics to indicate three relative tiers of significance. As illustrated by the matrix, we identified eight topics of greatest ESG importance for ESCO:

  • Ethics & Compliance
  • Innovation & Technology
  • Supply Chain Practices
  • Human Capital Management
  • Workplace Health & Safety
  • Energy Consumption & Greenhouse Gas Emissions
  • Water
  • Waste

This report focuses on these eight topics and reflects our performance in FY16 (unless otherwise noted). As we build our sustainability program, these topics will guide our efforts to establish baselines, set goals and continue to pursue long-term, sustainable growth.

Relative Priority of Sustainability Topics

Corporate Resources

Corporate Resources

2016 Annual Report
& Form 10-K

Board of Directors
Management Team
Corporate Governance Guidelines
Audit & Finance
Committee Charter

Human Resources
& Compensation
Committee Charter

Nominating &
Corporate Governance
Committee Charter

2016 Proxy Statement

Investor News
Stock Information
Financial Reporting
Shareholder Services