LTI AT THERMO FISHER

LEAD. PERFORM. REWARD.

At Thermo Fisher Scientific, we expect a lot from our people — especially our leaders. In turn, we reward. Thanks to our consistent stock performance, our rewards return more than most.

 

This tool highlights key features of our Long-Term Incentives (LTI), the chief measure we use to reward leaders at all levels with ownership in the Company and the long-term value that only ownership can bring.

 

A track record of success

Our Company’s strong historical stock performance and growth compared to our peers and major stock market indices has provided a valuable opportunity for LTI award recipients.

See how our long-term track record of success has helped drive stock price appreciation.

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How We
Drive Wealth

Use this tool for standard Thermo Fisher Scientific LTI grants.

As our company's stock performance grows, so too does the value of your award — at times, far beyond what was initially projected.

Experience how this might work using our interactive graphic. We invite you to view your own details online with Fidelity, our stock plan administrator. This resource is designed for standard LTI grants and for educational purposes only; your specific award details may differ.

LTI Award Amount: $

Stock price (NYSE:TMO) on 2/25/2017: $158.98

Estimated Shares (Time-based RSUs) Granted For this hypothetical modeling exercise, the number of RSUs is calculated by dividing the RSU award amount by the stock price. For each specific award, we use the 20-day average Thermo Fisher market closing stock price ending five trading days prior to the grant date to calculate the number of RSUs.:

Estimated Shares (Performance-based RSUs) Granted:

Estimated Options Granted The number of shares granted is based on Thermo Fisher’s methodology to convert awarded value into full value shares and options. There are a number of calculation and valuation inputs applicable uniquely to each specific grant and date, which include the colleagues’ award value, the mix of LTI types, the average stock price applied to determine shares, etc. Additionally for stock options, the calculation of the number of options includes valuation of the grant applying a Black-Scholes value, which is a widely-accepted stock option valuation model used to estimate the value of options upon the grant date. This tool is updated frequently with a recently-effective Black-Scholes value. As a result, any communications you receive may produce a different award value.:

I Want to Model:

Historical example of a vested award

Future potential of a new award

Performance Factor: 1.5

Anticipated tax rate:

Show An Estimated Value For:

Stock Options

Time-based RSUs

Options & RSUs

Time-based RSUs, Options & Performance-based RSUs

Vesting:

Show vesting progress

Enter your LTI award amount to begin

Total estimated award value: $97,643
To calculate the number of Stock Options you receive, Thermo Fisher uses a number of calculation and valuation inputs applicable uniquely to each specific grant and date, including a Black-Scholes value. The value and therefore the price of an option changes over time based on several market factors. This tool is updated frequently with a recently-effective Black-Scholes value. As a result, any communications you receive may produce a different award value.
This table demonstrates a sample estimation of how an LTI award can change in value over time.

Note: Taxes vary by country and example below assumes that the recipient holds all shares granted to them.

Rotate your screen for a better view of this chart

Bar chart resizes to scale automatically as Anticipated Annual Rate of Return is adjusted.

Bar chart resizes to scale automatically as Anticipated Annual Rate of Return is adjusted.

Model my LTI

We invite you to view and model your own details online with Fidelity, our stock plan administrator.

Bar chart resizes to scale automatically as Anticipated Annual Rate of Return is adjusted.

Model my LTI

We invite you to view and model your own details online with Fidelity, our stock plan administrator.

Bar chart resizes to scale automatically as Anticipated Annual Rate of Return and Performance Factor are adjusted.

Model my LTI

We invite you to view and model your own details online with Fidelity, our stock plan administrator.

OUR LTI PROGRAMS

At Thermo Fisher, long-term incentives represent a performance-based and market-competitive award.

Time-based RSUs

Shares of awarded Company stock that vest over time. Learn more.

Stock Options

The right to buy a set number of Company shares at a specific price, for a set amount of time. Learn more.

Performance-based RSUs

Shares awarded that are contingent upon achieving specific performance goals. Learn more.

CURRENT VEHICLE MIX

The LTI vehicle(s) you receive, and corresponding award amount(s), vary by Career Band, PMD rating, managerial discretion and country regulations. The information shown here represents our current mix. We review our LTI vehicle mix annually and may make adjustments in future years.

Refer to your award agreement for individual awards, terms and provisions.

100% Time-based RSUs

A small number of colleagues in these Bands receive LTI awards based on exceptional performance.

50% Time-based RSUs

50% Stock Options

40% Time-based RSUs

35% Stock Options

25% Performance-based RSUs

HOW LTI COMPARES

We have delivered considerable wealth for LTI recipients.

As part of your total rewards package, LTI awards provide an opportunity to share in the Company's success over time. Here's how LTI fits into the full picture:

Base Pay Short-termIncentives (AIP/SIP)

LONG-TERM INCENTIVES (LTI)

Historically, our strong stock performance has generated consistent value over time — at least one year after your award is issued — with far greater returns possible over much longer time frames.

BOTTOM LINE: Company success delivers more value, so the more our stock price grows, the more value your LTI award generates for you over time.

RecognitionAwards Savings Plans Health & Welfare Plans

WHY LTI

Long-term incentives are key to your total rewards.

Here’s why they matter for you, the Company and our shareholders.

For Colleagues

  • Be rewarded for outstanding performance — in addition to pay and other rewards opportunities

  • Build wealth over time

  • Participate directly in company ownership, without upfront costs

For Thermo Fisher

  • Reward the achievement of long-term goals and plans

  • Promote continued commitment to overall performance

  • Help attract and retain the talent we need to serve customers and achieve Our Mission

For Shareholders

  • Helps ensure Thermo Fisher employees are aligned to stock performance and the long-term Company vision

RESOURCES & LINKS

Videos

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