{ "docId": "019dd923-622c-750b-8b98-ad29603ddb10", "docSlug": "954987ce0454", "documentTitle": "Mettler-Toledo International, Inc. (MTD)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2019-07-24 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 121, "pageCount": 136, "prevPage": 120, "nextPage": 122, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 27, "notes": "The slide highlights a discrepancy between investor-facing Free Cash Flow and internal bonus-linked cash flow definitions.", "elementsJson": [ "headline_text", "paragraph", "callout_box", "data_table", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-ad29603ddb10/121", "deckHref": "/decks/019dd923-622c-750b-8b98-ad29603ddb10", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-ad29603ddb10.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-ad29603ddb10#slide-121", "components": [ { "bbox": { "h": 0.08, "w": 0.94, "x": 0.03, "y": 0.25 }, "kind": "callout", "text": "The plan provides that targets for 100% achievement should be challenging and ambitious, but also realistic and attainable such that it is possible to achieve and exceed them. The impact of over- or under-achieving targets on the annual incentive can be significant. The company and Board of Directors therefore approach the target setting process with care and consideration. We believe targets are set consistently with the philosophy of the POBS Plus plan that they be challenging and ambitious. In the last five years the average target achievement for named executive officers was 107% Source: Proxy st", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1560831d-40ba-47d4-ab6c-d97f634e1a57", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Convenient that management regularly hits 100% or more of its annual target cash inventive bonus every single year consistently while it inconsistently defines its free cash flow!", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac6-76d9-8631-c5f04cb3f7a8", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Average Target Achievement: 107%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-1ac6-76d9-8631-cca7a1200a67", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.94, "x": 0.03, "y": 0.16 }, "kind": "paragraph", "text": "Convenient that management regularly hits 100% or more of its annual target cash inventive bonus every single year consistently while it inconsistently defines its free cash flow! Even worse, Mettler shows investors one version of Free Cash Flow in earnings press releases, while paying management on a different definition.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0ce91748-0fd6-4805-8013-8d1c46e0fabf", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "The plan provides that targets for 100% achievement should be challenging and ambitious, but also realistic and attainable such that it is possible to achieve and exceed them. The impact of over- or under-achieving targets on the annual incentive can be significant. The company and Board of Directors therefore approach the target setting process with care and consideration. We believe targets are set consistently with the philosophy of the POBS Plus plan that they be challenging and ambitious. In the last five years the average target achievement for named executive officers was 107% — Proxy st", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac6-76d9-8631-c88647291193", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.94, "x": 0.03, "y": 0.92 }, "kind": "source-note", "text": "Source: MTD Proxy Statements. 1) MTD shows investors in its press release an entirely different view that \"Adjusted Free Cash Flow\" Is CFO + restructuring payments + Proceeds From Assets Sales - Capex. 2) Other metrics used for the bonus are \"Adjusted Non-GAAP EPS\" and Group Sales. Pre-2014, it also included LTM Inventory Turnover.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5897752d-acbc-40a5-bb07-a0a1e88b748d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.94, "x": 0.03, "y": 0.35 }, "kind": "table", "text": "Table showing Year, Average Target Achievement, Low/High % of Base Salary Incentive, and Definition of Net Cash Flow.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b732717f-1395-4472-add4-d7728826a206", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.305, "y": 0.02 }, "kind": "title", "text": "And Always Hits Annual Cash Incentive Bonus Targets....", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7410a041-2b5f-4b7e-9a14-5bb89ea66d3d", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "e6772c07-93ac-4e01-8250-9deb4ec8ed51", "evidence": "Contrasts management's stated philosophy of 'challenging and ambitious' targets with the reality of consistent 100%+ achievement and shifting definitions.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }