Frederick Lowery
THERMO FISHER SCIENTIFICAbout Frederick Lowery
Frederick M. Lowery is Executive Vice President and President, Laboratory Products and BioProduction at Thermo Fisher Scientific, responsible for the Laboratory Products, Customer Channels, and BioProduction businesses; he was appointed to this role in April 2024 and has 19 years of tenure at the company . He holds an MS in Manufacturing Management from Kettering University and a BS in Mechanical Engineering from Tennessee Technological University . Company performance context: 2024 revenue was $42.88B, adjusted EPS $21.86, free cash flow $7.3B, and five‑year TSR was 62% with $4.0B of 2024 share repurchases .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Thermo Fisher Scientific | EVP & President, Laboratory Products & BioProduction | Apr 2024–present | Oversight of Laboratory Products, Customer Channels, BioProduction |
| Thermo Fisher Scientific | SVP & President, Customer Channels | Jan 2021–Apr 2024 | Led Fisher Scientific channel globally |
| Thermo Fisher Scientific | President, Life Sciences Solutions & Laboratory Products | 2017–2021 | Led businesses central to COVID-19 response |
| Thermo Fisher Scientific | SVP & President, Laboratory Products; Senior Operating Officer, Life Sciences Solutions | 2014–2017 | Expanded product and operations leadership |
| Thermo Fisher Scientific | President, Laboratory Consumables; VP/GM roles | 2011–2014; 2006–2010 | Led consumables portfolio; GM roles across research and chromatography |
| Fisher Scientific International (pre‑merger) | Head of Operations, Molecular BioProducts | 2005–2006 | Operational leadership prior to Fisher‑Thermo merger |
| Maytag; General Motors | Product/Engineering/Operations roles | Pre‑2005 | Cross‑functional leadership experience |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| DuPont de Nemours, Inc. | Independent Director | Since 2019 | Public company board service |
| Boston Medical Center | Board of Trustees | Ongoing | Trustee profile |
| Tennessee Technological University; TTU Foundation | Board/Trustee | Ongoing | Alumni leadership |
| NACD New England | Chapter Leadership/Director | Ongoing | Governance community role |
Fixed Compensation
| Metric | 2024 |
|---|---|
| Salary Earned ($) | $881,558 |
| 2024 Base Salary (effective Mar 31) ($) | $900,000 |
| Target Bonus (% of base) | 100% |
| Actual Annual Incentive Paid ($) | $1,328,508 |
Performance Compensation
| Element | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Annual Incentive (Cash) | Organic Revenue Growth | 35% | Company goals set by Committee | 156.4% payout factor | Contributes to 150.7% overall score | Paid Q1 following year |
| Annual Incentive (Cash) | Adjusted Net Income | 30% | Company goals set by Committee | 186.7% payout factor | Contributes to 150.7% overall score | Paid Q1 following year |
| Annual Incentive (Cash) | Free Cash Flow | 5% | $6.0–$6.75B target band | 200% payout factor | Contributes to 150.7% overall score | Paid Q1 following year |
| Annual Incentive (Cash) | Non‑Financial Strategic Goals | 30% | CSR/strategy/capital deployment | 100% payout factor | Contributes to 150.7% overall score | Paid Q1 following year |
| PRSUs (Equity) | Organic Revenue Growth (50%), Adjusted EPS (50%) | N/A | Matrix thresholds set; baseline around −1.57% growth and $21.00–$21.33 EPS | (0.19)% growth; $21.86 EPS | 163% before TSR | Ratable over 3 years; subject to 3‑year relative TSR adjustment |
| Relative TSR modifier | 3‑year TSR vs 2024 TSR Peer Group | N/A | Top quartile +30% final tranche; bottom quartile −30% | Peer group defined (includes TMO) | Impacts final 2027 distribution | Applied to third vesting date |
| Stock Options (Time‑based) | Share price appreciation | N/A | Exercise price at grant | $552.85 | Value only if stock appreciates | 4 equal annual installments; 8‑year term (2024 grants) |
| Performance Stock Options (TSR) | Relative TSR | N/A | Earn up to 100% if top‑third over full 3 years; partial (20/40/60%) if top‑third in 1/2/3 annual periods | 2024 awards were underwater at year‑end | Performance‑earned only; no upside above 100% | Cliff vest Feb 2027 if performance achieved; 8‑year term; $552.85 strike |
Equity Ownership & Alignment
| Ownership Metric (as of Mar 1, 2025) | Value |
|---|---|
| Shares Owned Direct/Indirect | 8,308 |
| Options Exercisable by Apr 29, 2025 | 69,682 |
| RSUs Vesting by Apr 29, 2025 | 0 |
| Total Beneficial Ownership | 77,990 |
| Ownership as % of Shares Outstanding | <1% |
| Stock Ownership Guidelines | 3x base salary for executives; compliant as of Dec 31, 2024 |
| Anti‑Hedging/Pledging | Officers/directors prohibited from hedging or pledging; margin borrowing prohibited |
| Vested vs Unvested (select awards at 12/31/2024) | 18,300 options at $210.68 expiring 2/27/2025 (exercisable) ; 9,644 2024 options unexercisable expiring 2/21/2032 ; 14,446 2024 performance options (max) at $552.85 expiring 2/21/2032 |
| Deferred Compensation Balance | $9,449,320; 2024 executive contributions $706,581; company match $61,180; earnings $1,766,922 |
Employment Terms
| Provision | Key Terms |
|---|---|
| Severance (non‑CIC) | Executive severance policy: 1.5x base salary + 1.5x target bonus; pro‑rata bonus; 18 months medical/dental/life; up to $20,000 outplacement |
| Change‑in‑Control (CIC) | NEOs have CIC agreements with no tax gross‑ups; example estimated Lowery benefits on 12/31/2024 CIC termination: total $10,424,531 = severance $5,398,025 + stock options $168,598 + RSUs $4,857,908 |
| Non‑Compete | 12 months for Lowery post‑termination; non‑solicit/hire customers/employees 18 months |
| Clawback | SEC‑compliant clawback adopted Oct 2, 2023 for prior 3 years on restatement; additional 12‑month recoupment for misconduct/non‑compete violations |
| Insider Trading Policy | Prohibits short sales, puts/calls, hedging instruments, pledging, and margin borrowing by officers/directors |
Compensation Detail: Grants & Outstanding Awards
| 2024 Grant (Feb 21, 2024) | Shares / Options | Strike | Expiration | Grant Date Fair Value |
|---|---|---|---|---|
| PRSUs (target / max) | 3,094 / 6,807 | N/A | 3‑yr ratable; TSR‑adjusted | $1,741,149 |
| Performance Stock Options (target / max) | 14,446 / 14,446 | $552.85 | 2/21/2032 (8‑yr term) | $1,882,314 |
| Time‑based RSUs | 1,547 | N/A | 3.5‑yr schedule (15%, 25%, 30%, 30%) | $855,259 |
| Time‑based Stock Options | 9,644 | $552.85 | 2/21/2032 | $1,725,408 |
| Outstanding (12/31/2024) | Exercisable | Unexercisable | Strike | Expiration |
|---|---|---|---|---|
| Stock Options (legacy grants) | 18,300 | — | $210.68 | 2/27/2025 |
| Stock Options (2021 grant) | 8,235 | 2,745 | $458.81 | 2/23/2028 |
| Stock Options (2022 grant) | 4,646 | 4,647 | $528.58 | 2/23/2030 |
| Stock Options (2023 grant) | 2,141 | 6,423 | $548.40 | 2/22/2031 |
| Stock Options (2024 grant) | — | 9,644 | $552.85 | 2/21/2032 |
| Performance Stock Options (2024) | — | 14,446 (max unearned) | $552.85 | 2/21/2032 |
Perquisites and Other Compensation (2024)
| Item | Amount ($) |
|---|---|
| Matching 401(k) | 20,700 |
| Long‑term Disability Premium | 2,428 |
| Deferred Compensation Plan Match | 61,180 |
| Dividend Equivalents on RSUs | 8,737 |
| Executive Financial Planning | 16,730 |
| Other (incl. physicals) | 5,406 |
| Total “All Other Compensation” | 115,181 |
Compensation Structure Notes
- Pay mix emphasizes at‑risk compensation; rigorous targets aligned to organic revenue, adjusted net income, free cash flow, adjusted EPS, and relative TSR .
- 2024 NEO annual incentives paid at 150.7% based on formulaic outcomes; Lowery’s approved award was $1,328,508 on a 100% target .
- 2024 TSR performance stock option awards were underwater at year‑end, highlighting strict performance hurdles and limited realizable value absent share price appreciation .
Equity Ownership & Insider Activity
- Beneficial ownership as of Mar 1, 2025: 77,990 shares including exercisable options; less than 1% of outstanding; no indication of pledging permitted under policy .
- Note: Attempted to retrieve Form 4 transactions for 2024–2025 via insider‑trades skill returned an authorization error; therefore, current‑period insider transaction details could not be fetched programmatically. Analysis relies on proxy disclosures.
Expertise & Qualifications
- Education: MS, Manufacturing Management (Kettering University); BS, Mechanical Engineering (Tennessee Technological University) .
- Leadership: multi‑business P&L oversight including Customer Channels, Life Sciences Solutions, and Laboratory Products .
- Board governance experience at DuPont and major healthcare/academic institutions .
Investment Implications
- Alignment: Strong pay‑for‑performance design with high variable equity mix, TSR‑linked PRSUs and performance options, strict anti‑hedging/pledging, and robust clawback—supportive of shareholder alignment .
- Retention risk: Non‑compete (12 months) and TSR performance options that only vest with top‑third relative TSR provide retention hooks; 2024 performance options underwater at year‑end further restrain near‑term monetization .
- Potential selling pressure: Scheduled vesting of PRSUs (one‑third annually beginning Feb 28, 2025) and time‑based RSUs (3.5‑year schedule) may coincide with routine tax‑related share withholding; the company’s prohibition on pledging mitigates leverage‑driven sales .
- Change‑in‑control economics: Estimated Lowery CIC package ($10.4M) with equity acceleration components indicates moderate protection without tax gross‑ups, typical for large‑cap peers .