Melissa Flores

About Melissa Flores

Melissa S. Flores is Senior Vice President and Chief Human Resources Officer at IDEX Corporation, appointed in February 2021; she holds a BBA in Human Resources from the University of Wisconsin–Parkside and is age 41 per GlobalData . Under her tenure, IDEX exceeded its 2024 employee engagement goal (81% engagement) and delivered a Sustainability rating of 125%, while company incentive outcomes reflected mixed macro conditions with a 60% Business Performance Factor for the annual MICP and relative TSR PSUs paying 50% for the 2021 cycle at the 37th percentile versus the S&P 500 Index . The 2024 incentive design tied short- and long-term pay tightly to Adjusted EBITDA, organic sales growth, cash flow conversion, sustainability, and relative TSR performance .

Past Roles

External Roles

Fixed Compensation

Performance Compensation

Design features:

• Options vest 25% annually over four years; 10-year term; full vesting upon qualifying termination following change in control .
• PSUs vest based on three-year relative TSR versus S&P 500; 2021 PSUs paid at 50% due to TSR at 37th percentile; 2023 and 2024 cycles disclosed at 0% as of 12/31/2024 pending final performance .

Equity Ownership & Alignment

Employment Terms

Compensation Structure Analysis

• Pay mix shifted more to equity in 2024, consistent with a 10% increase in Flores’ target total direct compensation versus market positioning; Committee emphasized long-term equity to align interests with shareholders .
• Short-term incentives paid below target due to macro headwinds (BPF ~60%), while sustainability exceeded goals (125%), reinforcing balanced metrics and risk mitigation in plan design .
• Long-term PSUs maintain strict relative TSR gates; 2021 cycle paid 50% at 37th percentile, and 2023–2024 cycles were at 0% as of 12/31/2024—limiting windfall equity value absent strong relative performance .
• Governance strengthens alignment: prohibition of hedging/pledging, robust clawbacks, no option repricing, and no tax gross-ups .

Say-on-Pay & Shareholder Feedback

• Say-on-Pay support exceeded 94% in 2023 and 91% in 2024, with no structural changes made to the 2024 program following strong shareholder endorsement .

Expertise & Qualifications

• Education: BBA in Human Resources, University of Wisconsin–Parkside .
• HR Leadership: Built IDEX Academy; implemented global talent and assessment processes; co-developed IDEX Values; strategic HR leadership across multiple businesses .

Work History & Career Trajectory

Compensation Committee Analysis

• 2024 committee membership: Beck, Christenson, Quiroz, Satterthwaite, Gunter; six meetings; independent advisor F.W. Cook (no conflicts) .
• Risk assessment concluded programs balance risk/reward and are not reasonably likely to have a material adverse effect; features include caps, multi-metric, multi-year periods, ownership guidelines, anti-hedging/pledging, clawbacks, and independent oversight .

Investment Implications

• Alignment: Strong governance (no hedging/pledging, clawbacks, stock ownership guidelines) and performance-contingent equity suggest high alignment; Flores meets or is on track with ownership guidelines and holds 19,850 shares (<1% of class) .
• Retention and selling pressure: Options vesting 25% per year with expirations through 2034 and zero option exercises in 2024 indicate limited near-term selling pressure; PSU outcomes depend on relative TSR, with recent cycles not in-the-money as of 12/31/2024—a retention lever but also potential frustration if TSR lags .
• Change-in-control economics: Double-trigger severance of ~$1.70M plus equity acceleration is meaningful but not excessive (no tax gross-ups), balancing retention and shareholder-friendly terms .
• Performance-linked pay: Below-target 2024 MICP (60% BPF) coupled with strict TSR PSU hurdles reduces realized pay in weaker environments, indicating compensation sensitivity to company performance—supportive of pay-for-performance thesis .