Msci Inc. · NYSE:MSCI
Msci — Non-Deal Roadshow (2024)
32 slides from Msci's roadshow presentation, 2024
Slide 1: MSCI 2024 Corporate Responsibility Roadshow
MSCI 2024 Corporate Responsibility Roadshow Fall 2024 © 2024 2022 MSCI Inc. All rights reserved. Please refer Please to the refer disclaimer to the disclaimers at the end of in this document.
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to future events or to future financial performance and statements regarding corporate-responsibility a
Slide 3: Table of Contents
Table of Contents 1 MSCI Overview and 2024 Enhancements 2 Environmental Sustainability 3 Human Capital Management 4 Executive Compensation 5 Corporate Governance and Risk Oversight 6 Appendix
Slide 4: MSCI Overview and 2024 Enhancements
MSCI Overview and 2024 Enhancements Information Classification: GENERAL 4
Slide 5: MSCI at a Glance
MSCI at a Glance: Global Franchise Serving the Who’s Who of the Investment Industry What We Do $5.5T Provide critical decision support tools and services for the global investment community 31% Active ~$16.5T Indexed 6,118 ~$2.9B 69% employees1 Total Run Rate1 $11T 30+ 17% in AUM benchmarked to MSCI
Slide 6: Addressing Client Needs to Power Better Investment Decisions
Addressing Client Needs to Power Better Investment Decisions Investors look to MSCI for Supporting Investors’ Needs in the Investment Process • Data- and research-driven insights into drivers of risk and performance • Broad asset class coverage • Innovative tools to help bring investment strategies
Slide 7: Innovation and Investment in Key Growth Areas
Innovation and Investment in Key Growth Areas New Growth Scale Efficiencies Drive new business capabilities Expand existing products and Avoid and/or repurpose costs; through new products and services capabilities to accelerate growth achieve productivity gains Examples: Examples: Examples: • Wealth
Slide 8: Corporate Responsibility Vision and Strategy
Corporate Responsibility Vision and Strategy MSCI is committed to “walking the talk” VISION: Leverage our leadership in sustainability products and investment tools to drive our Corporate Responsibility efforts Our Outcomes are Based on Four Strategic Pillars Our Process Advancing Environmental Sust
Slide 9: 2024 Corporate Responsibility Program
2024 Corporate Responsibility Program Our Environmental Sustainability Approach Our Executive Compensation Program • Continue working to reach our net-zero emissions reduction • Long-term incentive program aligns executive compensation with targets by conducting strategic engagement with suppliers a
Slide 10: Strong Corporate Responsibility Advisory Council
Strong Corporate Responsibility Advisory Council A group of senior executives who review strategically significant proposals regarding our corporate responsibility policies, actions and disclosures. Baer Pettit Cristina Bondolowski Tia Counts Scott Crum Robert Gutowski President and Chief Marketing
Slide 11: ESG Materiality Assessment
ESG Materiality Assessment In 2023, MSCI conducted an externally supported ESG materiality assessment to identify and prioritize ESG topics to inform our sustainability reporting and strategies. These topics are broadly aligned with those outlined in MSCI’s ESG Industry Materiality Map, and the anal
Slide 12: Environmental Sustainability
Environmental Sustainability
Slide 13: MSCI's Environmental Commitments
MSCI’s Environmental Commitments We have 2025 milestones as well as SBTi-validated near-term, long-term and net-zero targets that are aligned to a 1.5°C trajectory. By 2025 By 2030 Before 2040 • 100% renewable electricity • 80% reduction in Scope 1 & 2 • Reach Net-Zero across • 60% reduction in Scop
Slide 14: MSCI's Sustainability Practices
MSCI’s Sustainability Practices To meet our commitments, we will need an agile and evolving strategy. Established emissions Published sustainability Operational changes Tracking regulatory and reporting on an annual disclosures aligned with including launching technological updates cadence market st
Slide 15: Human Capital Management
Human Capital Management
Slide 16: Our People Strategy
Our People Strategy Strengthen our senior leadership and leadership pipeline by Build an environment that includes everyone, fosters a strong 1 prioritizing the development of our current leaders and 5 sense of belonging, celebrates diversity and champions the continuously engaging and recruiting ex
Slide 17: Integrated Talent Management is a Critical Imperative
Integrated Talent Management is a Critical Imperative • We need the right leaders and workforce with the right Bus iness & functional skills to deliver our growth strategy and business plans. strategy Strategic Progression workforc e • Our senior leaders are accountable for MSCI talent, planning pla
Slide 18: Fostering Inclusion & Belonging
Fostering Inclusion & Belonging Our Global Workforce(1)(2) OUR WHY South Africa 4% Philippines • More than 80% of our global workforce is located outside of 7% the U.S. When our people around the world feel connected to MSCI whether they are based in Chicago or Coimbatore, Hungary we know that they
Slide 19: Fostering Inclusion & Belonging (cont'd)
Fostering Inclusion & Belonging (cont’d) Our Diversity, Equity, and Inclusion Strategy Our unified, firmwide approach to DE&I incudes everyone and recognizes and celebrates local and cultural nuance. It is comprised of 3 strategic pillars: Our People Our Leaders Our Communities Becoming a magnet for
Slide 20: Empowering a Connected and Inclusive Workforce Worldwide
Empowering a Connected and Inclusive Workforce Worldwide DE&I "localization" teams in our most populous regions bring employees together to define what matters most for inclusion in each region. In addition, our global employee run Inclusion & Belonging Council brings 29 members, across 21 cities in
Slide 21: Executive Compensation
Executive Compensation
Slide 22: Current Executive Compensation Structure
Current Executive Compensation Structure Compensation Type of Pay Purpose 2024 Program Element Annual Base Fixed – Cash • Provides certainty and predictability to meet • The only fixed component of our executive compensation program Salary ongoing living and other financial commitments • For 2023, s
Slide 23: Executive Compensation Practices
Executive Compensation Practices What we do What we don’t do ✓ Emphasize variable compensation x Do not provide gross-ups to cover excise taxes ✓ Provide formula-based annual cash incentive opportunities ✓ Subject equity awards to rigorous service- and performance-vesting vesting requirements x Do n
Slide 24: Shareholder Alignment and Engagement
Shareholder Alignment and Engagement Share Ownership Requirements The Compensation Committee believes that significant stock ownership among MSCI’s senior-most leadership aligns management’s interests with those of our shareholders and encourages an “owner-operator” mindset. In 2022, the Compensatio
Slide 25: Executive Compensation Enhancements
Executive Compensation Enhancements WHAT WE HEARD WHAT WE DID WHY We believe a lower PSU payout maximum better Request to lower the PSU payout For awards granted in 2024, we lowered the payout maximum for aligns with market practice and is directly maximum annual PSUs from 300% to 200% responsive to
Slide 26: Corporate Governance and Risk Oversight
Corporate Governance and Risk Oversight
Slide 27: Board Snapshot
Board Snapshot MSCI Inc. Board of Compensation, Directors Talent and Culture Committee Strategy and Finance Committee Jacques P. Perold (Chair) Sandy Rattray (Chair) Linda Riefler Jacques Perold Wayne Edmunds Chairman of the Marcus Smith Paula Volent Board and CEO Paula Volent Henry Fernandez Audit
Slide 28: Governance Highlights
Governance Highlights ✓ All director nominees except our CEO and our ✓ Annual Board, committee and director evaluations, President and COO are independent. with third-party evaluator engaged periodically, ✓ Strong, independent Lead Director and including in 2024. independent Board committees. ✓ Exec
Slide 29: Director Refreshment
Director Refreshment Tenure and Board Refreshment • In 2024, appointed Michelle Seitz, a new director with deep experience in the investment industry: more than three decades of experience in asset management 6 of 12 (50%) directors and private wealth, both as a CEO and as an investor joined the Boa
Slide 30: Risk Oversight Program Highlights
Risk Oversight Program Highlights Role of the Board, Committees and Management The full Board reviews the risks associated with MSCI’s strategy and discusses the appropriate levels of risk in light of MSCI’s business objectives. Committees are responsible for monitoring and reporting to the full Boa
Slide 31: Appendix
Appendix
Slide 32: Supplemental Information
Supplemental Information MSCI has presented Run Rate, a supplemental key operating metric, as part of this presentation. Run Rate estimates at a particular point in time the annualized value of the recurring revenues under our client license agreements (“Client Contracts”) for the next 12 months, as