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Pay vs Performance Disclosure
 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Pay vs Performance Disclosure          
Pay vs Performance Disclosure, Table
PAY VERSUS PERFORMANCE
As
required
by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation
S-K,
we are providing the following information about the relationship between total compensation actually paid to Robert J. Willett, our President and Chief Executive Officer, and our named executive officers (as calculated in ac
c
ordance with Item 402(v) of Regulation
S-K)
and certain financial performance measures.
 
Year
  
Summary
compensation
table total for
CEO (1)
    
Compensation
actually paid
to CEO (1)(2)(3)
    
Average summary
compensation table
total for non-CEO

named executive

officers (NEOs) (4)
    
Average
compensation
actually paid
for
non-CEO

NEOs (3)(4)(5)
    
Value of initial fixed

$100 investment based on:
    
Net Income
    
Adjusted
EBITDA
% (7)
    
Operating
Margin
% (8)
  
 
Total
shareholder
return
(TSR) (6)
    
Peer group
TSR (6)
  
2024
   $ 7,910,823     $ 3,119,917     $ 2,091,456     $ 1,141,732     $ 69.20     $ 114.14     $ 106,171,000       17.1 %      N/A  
2023
   $ 6,959,914     $ 3,092,562     $ 2,377,635     $ 1,313,623     $ 79.95     $ 129.10     $ 113,234,000       N/A       15.6 % 
2022
   $ 7,257,424     $ (3,658,243 )    $ 2,596,662     $ (2,512,158 )    $ 89.67     $ 100.58     $ 215,525,000       N/A       24.4 % 
2021
   $ 10,534,520     $ 9,476,831     $ 1,019,293     $ 1,022,790     $ 147.25     $ 165.34     $ 279,881,000       N/A       30.4 % 
2020
   $ 3,507,561     $ 10,822,671     $ 3,217,496     $ 6,041,660     $ 151.56     $ 139.59     $ 176,186,000       N/A       21.0 % 
 
(1)
Our CEO in all of 2020, 2021, 2022, 2023, and 2024 was Robert J. Willett.
(2)
Mr. Willett’s compensation “actually paid” as presented above is calculated by deducting and adding the following amounts, in each case in accordance with Item 402(v)(2)(C) of Regulation
S-K:
 
CEO Compensation “Actually Paid”
   
2024
    
2023
    
2022
    
2021
    
2020
  
Summary Compensation Table total for the covered fiscal year
    $ 7,910,823     $ 6,959,914     $ 7,257,424     $ 10,534,520     $ 3,507,561  
Less, Grant date fair value of awards reported in the Summary Compensation Table for the covered fiscal year
    $ 6,500,024     $ 6,198,638     $ 6,200,799     $ 6,187,056     $ 3,322,440  
Plus,
Year-end
fair value of awards granted for the covered fiscal year that were outstanding and unvested as of the end of the covered fiscal year
    $ 4,783,447     $ 4,188,941     $ 3,294,711     $ 4,781,517     $ 7,043,400  
Plus, Change in fair value of awards granted in prior years that were outstanding and unvested as of the end of the covered fiscal year (from prior fiscal
year-end
to covered fiscal
year-end)
    $ (2,637,666 )    $ (2,154,769 )    $ (6,805,316 )    $ (363,960 )    $ 4,023,900  
Plus, Change in fair value of awards granted in prior years that vested in the covered fiscal year (from prior fiscal
year-end
to vesting date)
    $ (436,663 )    $ 297,114     $ (1,204,263 )    $ 711,810     $ (429,750 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total Adjustments
    $ (4,790,906 )    $ (3,867,352 )    $ (10,915,667 )    $ (1,057,689 )    $ 7,315,110  
 
(3)
In 2020, 2021, 2022, 2023, and 2024, neither our CEO nor any
non-CEO
NEO had any awards that vested in the same year that they were granted, any awards granted in prior years that failed to meet the applicable vesting conditions, or any dividends or other earnings paid on equity awards in the covered fiscal year prior to vesting that are not reflected in total compensation for the applicable year, and therefore, no adjustments for those items were included in calculating compensation “actually paid.” Further, in 2020, 2021, 2022, 2023, and 2024 neither our CEO nor any
non-CEO
NEO received any benefit under any defined benefit and actuarial plans and therefore, no adjustments for those items were included in calculating compensation “actually paid.”
 
53
(4)
Our
non-CEO
NEOs for each of the fiscal years presented above were:
 
  •  
2024: Dennis Fehr, Laura A. MacDonald, Paul D. Todgham, Carl W. Gerst III, Sheila M. DiPalma, and Joerg Kuechen
 
  •  
2023: Paul D. Todgham, Carl W. Gerst III, Sheila M. DiPalma and Joerg Kuechen
 
  •  
2022: Paul D. Todgham, Carl W. Gerst III, Sheila M. DiPalma and Joerg Kuechen
 
  •  
2021: Robert J. Shillman, Paul D. Todgham, Carl W. Gerst III and Sheila M. DiPalma
 
  •  
2020: Robert J. Shillman, Paul D. Todgham, Carl W. Gerst III, Sheila M. DiPalma and Laura A. MacDonald
 
(5)
Average
non-CEO
NEO compensation “actually paid” as presented above is calculated by deducting and adding the following amounts, in each case in accordance with Item 402(v)(2)(C) of Regulation
S-K:
 
Average
Non-CEO
Compensation “Actually Paid”
   
2024
    
2023
    
2022
    
2021
    
2020
  
Summary Compensation Table total for the covered fiscal year
    $ 2,091,456     $ 2,377,635     $ 2,596,662     $ 1,019,293     $ 3,217,496  
Less, Grant date fair value of awards reported in the Summary Compensation Table for the covered fiscal year
    $ 1,600,028     $ 2,003,523     $ 2,158,091     $ 373,852     $ 2,682,912  
Plus,
Year-end
fair value of awards granted for the covered fiscal year that were outstanding and unvested as of the end of the covered fiscal year
    $ 1,228,049     $ 1,564,037     $ 1,382,138     $ 297,237     $ 4,517,875  
Plus, Change in fair value of awards granted in prior years that were outstanding and unvested as of the end of the covered fiscal year (from prior fiscal
year-end
to covered fiscal
year-end)
    $ (453,064 )    $ (662,444 )    $ (3,519,480 )    $ (183,252 )    $ 1,098,685  
Plus, Change in fair value of awards granted in prior years that vested in the covered fiscal year (from prior fiscal
year-end
to vesting date)
    $ (124,681 )    $ 37,918     $ (813,386 )    $ 263,363     $ (109,485 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total Adjustments
    $ (949,724 )    $ (1,064,012 )    $ (5,108,820 )    $ 3,497     $ 2,824,163  
 
(6)
Total shareholder return (“TSR”) of Cognex and the peer group are calculated by assuming that an investment of $100 was made in each of our common stock and in the Nasdaq Lab Apparatus & Analytical, Optical, Measuring & Controlling Instrument (SIC 3820-3829 US Companies) Index (“Peer Index”) starting from the market close on December 31, 2019, which is the last trading day before our fiscal year 2020, through and including the end of each fiscal year shown. Total shareholder return includes reinvestment of dividends into shares of common stock of the applicable company. Data for the Peer Index was provided to Cognex by Research Data Group, Inc.
 
(7)
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“Adjusted EBITDA”) percentage is defined as operating income as a percentage of revenue adjusted for amortization of acquisition-related intangible assets and depreciation, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and
one-time
discrete events, such as loss or recovery related to a fire. While we consider numerous financial and
non-financial
performance measures for the purpose of evaluating and determining executive compensation, for 2024, we considered Adjusted EBITDA percentage, which is a primary factor used to determine annual cash incentive compensation for our NEOs, to be the most important performance measure used to link compensation “actually paid” to the NEOs to company performance. Prior to 2024, we used operating margin as a similar metric. The company switched to Adjusted EBITDA percentage to provide consistency between our internal and external metrics. Prior to 2024, we did not use Adjusted EBITDA percentage as a performance metric in our compensation program.
(8)
Operating margin is defined as our operating income as a percentage of revenue. While we consider numerous financial and
non-financial
performance measures for the purpose of evaluating and determining executive compensation, for 2023, 2022, 2021, and 2020, we considered operating margin, which was a primary factor used to determine annual cash incentive compensation for our NEOs, to be the most important performance measure used to link compensation “actually paid” to the NEOs to company performance.
       
Company Selected Measure Name Operating margin        
Named Executive Officers, Footnote
(4)
Our
non-CEO
NEOs for each of the fiscal years presented above were:
 
  •  
2024: Dennis Fehr, Laura A. MacDonald, Paul D. Todgham, Carl W. Gerst III, Sheila M. DiPalma, and Joerg Kuechen
 
  •  
2023: Paul D. Todgham, Carl W. Gerst III, Sheila M. DiPalma and Joerg Kuechen
 
  •  
2022: Paul D. Todgham, Carl W. Gerst III, Sheila M. DiPalma and Joerg Kuechen
 
  •  
2021: Robert J. Shillman, Paul D. Todgham, Carl W. Gerst III and Sheila M. DiPalma
 
  •  
2020: Robert J. Shillman, Paul D. Todgham, Carl W. Gerst III, Sheila M. DiPalma and Laura A. MacDonald
       
Peer Group Issuers, Footnote
(6)
Total shareholder return (“TSR”) of Cognex and the peer group are calculated by assuming that an investment of $100 was made in each of our common stock and in the Nasdaq Lab Apparatus & Analytical, Optical, Measuring & Controlling Instrument (SIC 3820-3829 US Companies) Index (“Peer Index”) starting from the market close on December 31, 2019, which is the last trading day before our fiscal year 2020, through and including the end of each fiscal year shown. Total shareholder return includes reinvestment of dividends into shares of common stock of the applicable company. Data for the Peer Index was provided to Cognex by Research Data Group, Inc.
       
PEO Total Compensation Amount $ 7,910,823 $ 6,959,914 $ 7,257,424 $ 10,534,520 $ 3,507,561
PEO Actually Paid Compensation Amount $ 3,119,917 3,092,562 (3,658,243) 9,476,831 10,822,671
Adjustment To PEO Compensation, Footnote
(2)
Mr. Willett’s compensation “actually paid” as presented above is calculated by deducting and adding the following amounts, in each case in accordance with Item 402(v)(2)(C) of Regulation
S-K:
 
CEO Compensation “Actually Paid”
   
2024
    
2023
    
2022
    
2021
    
2020
  
Summary Compensation Table total for the covered fiscal year
    $ 7,910,823     $ 6,959,914     $ 7,257,424     $ 10,534,520     $ 3,507,561  
Less, Grant date fair value of awards reported in the Summary Compensation Table for the covered fiscal year
    $ 6,500,024     $ 6,198,638     $ 6,200,799     $ 6,187,056     $ 3,322,440  
Plus,
Year-end
fair value of awards granted for the covered fiscal year that were outstanding and unvested as of the end of the covered fiscal year
    $ 4,783,447     $ 4,188,941     $ 3,294,711     $ 4,781,517     $ 7,043,400  
Plus, Change in fair value of awards granted in prior years that were outstanding and unvested as of the end of the covered fiscal year (from prior fiscal
year-end
to covered fiscal
year-end)
    $ (2,637,666 )    $ (2,154,769 )    $ (6,805,316 )    $ (363,960 )    $ 4,023,900  
Plus, Change in fair value of awards granted in prior years that vested in the covered fiscal year (from prior fiscal
year-end
to vesting date)
    $ (436,663 )    $ 297,114     $ (1,204,263 )    $ 711,810     $ (429,750 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total Adjustments
    $ (4,790,906 )    $ (3,867,352 )    $ (10,915,667 )    $ (1,057,689 )    $ 7,315,110  
        
Non-PEO NEO Average Total Compensation Amount $ 2,091,456 2,377,635 2,596,662 1,019,293 3,217,496
Non-PEO NEO Average Compensation Actually Paid Amount $ 1,141,732 1,313,623 (2,512,158) 1,022,790 6,041,660
Adjustment to Non-PEO NEO Compensation Footnote
(5)
Average
non-CEO
NEO compensation “actually paid” as presented above is calculated by deducting and adding the following amounts, in each case in accordance with Item 402(v)(2)(C) of Regulation
S-K:
 
Average
Non-CEO
Compensation “Actually Paid”
   
2024
    
2023
    
2022
    
2021
    
2020
  
Summary Compensation Table total for the covered fiscal year
    $ 2,091,456     $ 2,377,635     $ 2,596,662     $ 1,019,293     $ 3,217,496  
Less, Grant date fair value of awards reported in the Summary Compensation Table for the covered fiscal year
    $ 1,600,028     $ 2,003,523     $ 2,158,091     $ 373,852     $ 2,682,912  
Plus,
Year-end
fair value of awards granted for the covered fiscal year that were outstanding and unvested as of the end of the covered fiscal year
    $ 1,228,049     $ 1,564,037     $ 1,382,138     $ 297,237     $ 4,517,875  
Plus, Change in fair value of awards granted in prior years that were outstanding and unvested as of the end of the covered fiscal year (from prior fiscal
year-end
to covered fiscal
year-end)
    $ (453,064 )    $ (662,444 )    $ (3,519,480 )    $ (183,252 )    $ 1,098,685  
Plus, Change in fair value of awards granted in prior years that vested in the covered fiscal year (from prior fiscal
year-end
to vesting date)
    $ (124,681 )    $ 37,918     $ (813,386 )    $ 263,363     $ (109,485 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total Adjustments
    $ (949,724 )    $ (1,064,012 )    $ (5,108,820 )    $ 3,497     $ 2,824,163  
        
Compensation Actually Paid vs. Total Shareholder Return
The following chart shows the relationship between the compensation “actually paid” (“CAP”) to our CEO, CAP to our
non-CEO
NEOs, Cognex’s TSR, and the Peer Index TSR.
 
LOGO
       
Compensation Actually Paid vs. Net Income
The following chart shows the relationship between CAP to our CEO, CAP to our
non-CEO
NEOs, and Cognex’s net income.
 
LOGO
       
Compensation Actually Paid vs. Company Selected Measure
The following chart shows the relationship between CAP to our CEO, CAP to our
non-CEO
NEOs, and Cognex’s most important performance measure for determining incentive compensation, which was operating margin for the years 2020, 2021, 2022, and 2023, and adjusted EBITDA for the year 2024.
 
LOGO
       
Total Shareholder Return Vs Peer Group
The following chart shows the relationship between the compensation “actually paid” (“CAP”) to our CEO, CAP to our
non-CEO
NEOs, Cognex’s TSR, and the Peer Index TSR.
 
LOGO
       
Tabular List, Table
Tabular List of Most Important Financial Performance Measures
For Mr. Willett, the financial performance meas
ur
es that the company has determined are most important to link his compensation actually paid to the company’s performance in the last completed fiscal year are:
 
  •  
revenue;
 
  •  
operating income;
 
  •  
adjusted EBITDA; and
 
  •  
relative TSR.
For our
non-CEO
NEOs, the financial performance measures that the company has determined are most important to link compensation actually paid to the company’s performance in the last completed fiscal year are:
 
  •  
revenue;
 
  •  
operating income; and
 
  •  
adjusted EBITDA.
       
Total Shareholder Return Amount $ 69.2 79.95 89.67 147.25 151.56
Peer Group Total Shareholder Return Amount 114.14 129.1 100.58 165.34 139.59
Net Income (Loss) $ 106,171,000 $ 113,234,000 $ 215,525,000 $ 279,881,000 $ 176,186,000
Company Selected Measure Amount 0.171 0.156 0.244 0.304 0.21
PEO Name Robert J. Willett Robert J. Willett Robert J. Willett Robert J. Willett Robert J. Willett
PEO          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ (4,790,906) $ (3,867,352) $ (10,915,667) $ (1,057,689) $ 7,315,110
PEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (6,500,024) (6,198,638) (6,200,799) (6,187,056) (3,322,440)
PEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 4,783,447 4,188,941 3,294,711 4,781,517 7,043,400
PEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (2,637,666) (2,154,769) (6,805,316) (363,960) 4,023,900
PEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ (436,663) 297,114 (1,204,263) 711,810 (429,750)
PEO | Mr. Willetts [Member] | Measure:: 1          
Pay vs Performance Disclosure          
Name revenue        
PEO | Mr. Willetts [Member] | Measure:: 2          
Pay vs Performance Disclosure          
Name operating income        
PEO | Mr. Willetts [Member] | Measure:: 3          
Pay vs Performance Disclosure          
Name adjusted EBITDA        
PEO | Mr. Willetts [Member] | Measure:: 4          
Pay vs Performance Disclosure          
Name relative TSR        
Non-PEO NEO          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ (949,724) (1,064,012) (5,108,820) 3,497 2,824,163
Non-PEO NEO | Measure:: 1          
Pay vs Performance Disclosure          
Name revenue        
Non-PEO NEO | Measure:: 2          
Pay vs Performance Disclosure          
Name operating income        
Non-PEO NEO | Measure:: 3          
Pay vs Performance Disclosure          
Name adjusted EBITDA        
Non-PEO NEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ (1,600,028) (2,003,523) (2,158,091) (373,852) (2,682,912)
Non-PEO NEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 1,228,049 1,564,037 1,382,138 297,237 4,517,875
Non-PEO NEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (453,064) (662,444) (3,519,480) (183,252) 1,098,685
Non-PEO NEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ (124,681) $ 37,918 $ (813,386) $ 263,363 $ (109,485)