Good day, and welcome to the 2022 Annual Meeting of Shareholders of The Scotts Miracle-Gro Company. I would now like to turn the conference over to Jim Hagedorn, Chairman and Chief Executive Officer. Please go ahead.
Good morning, everyone. My name is Jim Hagedorn, Chairman and Chief Executive Officer of The Scotts Miracle-Gro Company, and I'd like to thank you for joining us this morning for our annual meeting of shareholders. Before we launch into our agenda, I wanna thank our shareholders for their continued support. It's been an unprecedented time for our company. By historical standards, we've generated more than a decade's worth of growth over the past two years and have emerged as one of the strongest consumer companies in America. We had a record result in fiscal 2021 as consumers remained highly engaged in gardening, even as the impact of the global pandemic began to ease compared with the previous year. Our U.S. consumer segment grew by another 11% in fiscal 2021 after the 24% growth we saw in fiscal 2020.
The Hawthorne Company grew by 39% without the benefit of acquisitions. This business outperformed the competition and further demonstrated its leadership in the indoor cultivation space that continues to benefit from the rapidly- evolving authorized cannabis markets across the United States. Last year marked the final year of Project Focus, a plan we first introduced in 2016 that drove significant value for our shareholders. Since the beginning of that effort, we more than doubled the size of The Scotts Miracle-Gro Company and nearly tripled our profitability. Our new strategic plan offers us the potential to double the size of the company based on five strategic pillars. Three of those pillars relate to our traditional lawn and garden business. The other two focus on the emerging opportunities in cannabis.
It's a strategy that levers our existing capabilities and is complemented by our continued M&A opportunities that will strengthen our portfolio and drive opportunities for the future. Here are the pillars. First, the continued opportunity within our core lawn and garden legacy brands. Second, continued focus on our direct-to-consumer efforts. Third, additional investment in live goods. Fourth, continued opportunities for growth in our existing Hawthorne business, both from acquisitions and continued expansion of the cannabis market. Fifth, opportunities to invest in emerging areas of cannabis that offer the ability to create a strong foothold in a category that is poised for significant growth for years to come. This is an exciting time for all of us at Scotts Miracle-Gro, and shareholders should expect to see a number of headlines in the months ahead that will go a long way in implementing our vision. This is a bold plan.
It's a rational plan, and one that will continue to transform your company. That's not to say there won't be challenges along the way as we execute, but the opportunities will drive our efforts for the next several years, and I believe continue to drive above- average returns for our shareholders. My confidence in our ability to succeed is largely due to the other people with me this morning, the rest of our leadership team. I wanna take a moment to thank them for their dedication to our efforts. I'm fortunate to be surrounded by such a strong group. I also wanna thank our board of directors for their support and high level of engagement. I wanna thank each of our associates for their hard work and commitment. Moving on, in today's meeting, we will tend to the business outlined in our proxy statement.
When we're done with that portion of the meeting, we will answer questions that shareholders have asked online. If you have a question, please post it over the next several minutes. Our board members are also present for this virtual meeting. As a reminder, our board of directors is comprised of the following members. Dave Evans, Brian Finn, Adam Hanft, Steve Johnson, Tom Kelly, Kate Hagedorn Littlefield, Nancy Mistretta, Peter Shumlin, General John Vines, Gerald Volas, and myself. This is a diverse group of professionals who play an active oversight role in providing counsel to the entire management team. Their experiences vary between finance, government, strategic planning, consulting, corporate leadership, advertising, consumer marketing, and the United States military. I believe our shareholders are extremely lucky to be represented by such a talented and engaged group of directors.
I'd also like to say the same thing about my management team and executive officers. Joining me here this morning are our President and Chief Operating Officer, Mike Lukemire, our Chief Financial Officer, Cory Miller, our General Counsel and Corporate Secretary, Ivan Smith, our Global Head of Human Resources, Denise Stump, our Chief Communications Officer, Jim King, our Division President, Chris Hagedorn, and our Senior Vice President of Special Operations, Mark Sims. At this point, we will move to the business of the annual meeting of the shareholders. Please note that the polls are currently open, so if you are a shareholder who has not yet voted or a shareholder looking to change your vote, you may do so by clicking the voting button on the web portal and following the instructions there. Now I will turn the floor over to Ivan Smith, our General Counsel and Corporate Secretary. Ivan?
Thanks, Jim. I'd like to also add my welcome to the annual meeting of shareholders and introduce Amy Pavich, who will serve as our Inspector of Elections, and Kevin Krumm, Lead Client Service Partner at Deloitte & Touche LLP, our outside independent auditor. This is the formal part of the meeting where we address matters that are set forth in the proxy statement sent to our shareholders. When we finish, I'll turn the podium back over to Jim for Q&A. Only validated shareholders will be able to ask questions in the designated field on the web portal. Out of consideration for others, I ask that you please limit yourself to one question. This meeting is being recorded. However, no one attending via webcast is permitted to use any audio recording device. During the course of our discussions this morning, we may make forward-looking statements regarding the company's future performance.
I want to remind everyone that actual results could differ materially from what we discuss based on a variety of risk factors. We encourage investors to familiarize themselves with those risk factors, which are spelled out in detail in our Form 10-K, which is filed with the SEC. We can now proceed with the business of our meeting. First, with regard to last year's annual meeting of shareholders, I'd like the record to reflect that minutes of that meeting have been filed with the records of the company. Next, Jim King, will confirm our mailing procedures and registered shareholders.
Thank you, Ivan. I would like to present the affidavit of Broadridge Financial Solutions, pursuant to which Broadridge has confirmed that the notice of this meeting, the proxy statement, the form of proxy, and the 2021 annual report were timely mailed to the shareholders of the company.
Thanks, Jim. The affidavit and proxy materials are directed to be filed with the records of the company.
I would also like to present a list of the registered shareholders of the company's common shares as of the close of business November 29, 2001, the record date for this meeting.
That was 2021.
2021.
I'm sorry. Thank you. The list of registered shareholders is directed to be filed with the records of the company. Next, I'd like to offer a final opportunity to any shareholder who has not yet voted or who wishes to change their vote to do so by clicking on the voting button on the web portal and following the instructions there. Shareholders who have sent in proxies or voted via telephone or the Internet and do not want to change their vote do not need to take any further action. Now that everyone's had the opportunity to vote, I now declare the polls for the annual meeting closed. Ms. Pavich, please present your report regarding the number of common shares present at today's meeting.
Mr. Smith, a minimum of 50,329,209 shares, 91.5% of common shares are present, in- person, or by proxy.
Thank you, Ms. Pavich. The proxies, substitutions of proxies, and ballots presented to the meeting are hereby ordered to be filed with the records of the company. According to Ms. Pavich's report, the quorum is present so that business may properly be conducted. As set forth in the proxy statement, the business of this meeting includes five proposals. Proposal number one is to elect four directors, each to serve for a three-year term expiring at the annual meeting of shareholders to be held in the year 2025. Proposal number two is to conduct an advisory vote on the compensation of the company's named executive officers. Proposal number three is to ratify the audit committee's selection of Deloitte & Touche LLP, as the company's independent registered public accounting firm for the fiscal year ending September 30, 2022.
Proposal number four is to approve an amendment and restatement of The Scotts Miracle-Gro Company Long-Term Incentive Plan to, among other things, increase the maximum number of common shares available for grant to participants. Proposal number five is to conduct an advisory vote on the frequency of advisory votes on the compensation of the company's named executive officers. Proceeding to proposal number one, I recognize Denise Stump, Executive Vice President, Global Human Resources, for the purpose of nominating the four directors.
Thanks, Ivan. I hereby move that the following persons be elected as directors of the company, each to hold office until the annual meeting of shareholders to be held in the year 2025 and until their successors are duly elected and qualified, or until their earlier death, resignation, or removal. David Evans, Adam Hanft, Stephen Johnson, and Katherine Hagedorn Littlefield.
Is there a second to the motion?
I second the motion.
As a person appointed as an official proxy, I report that I have voted in accordance with the proxies received from shareholders. Ms. Pavich, may I have your report of the vote regarding the election of the four directors?
Mr. Smith, I report that each of the four nominees for election as a director received not less than 38,509,522 votes.
I hereby declare that David C. Evans, Adam Hanft, Stephen L. Johnson, and Katherine Hagedorn Littlefield have been duly elected as directors of the company. The meeting will now proceed to consideration of proposal number two. I recognize Denise Stump for the purpose of presenting that proposal.
Thanks, Ivan. I hereby move that shareholders approve on an advisory basis the compensation of the company's named executive officers.
Is there a second to the motion?
I second the motion.
As a person appointed as an official proxy, I report that I have voted in accordance with the proxies received from shareholders. Ms. Pavich, may I have your report of the advisory vote regarding the compensation of the company's named executive officers?
Mr. Smith, I report that not less than 44,206,848 advisory votes were received for approval of the compensation of the company's named executive officers.
I hereby declare that the shareholders have approved on an advisory basis the compensation of the company's named executive officers. The meeting will now proceed to consideration of proposal number three. I recognize Cory Miller for the purpose of presenting that proposal.
Thank you, Ivan. I hereby move that the Audit Committee's selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year ending September 30, 2022 be ratified.
Is there a second to the motion?
I second the motion.
As a person appointed as an official proxy, I report that I have voted in accordance with the proxies received from shareholders. Ms. Pavich, may I have your report of the vote regarding the ratification of the audit committee's selection of Deloitte & Touche LLP as the company's independent registered public accounting firm?
Mr. Smith, I report that ratification of the audit committee's selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year ending September 30, 2022 received not less than 49,703,692 votes.
I hereby declare that the Audit Committee's selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year ending September 30, 2022, has been ratified. The meeting will now proceed to consideration of proposal number four I recognize Denise Stump for the purpose of presenting the proposal.
Thanks, Ivan. I hereby move that shareholders approve an amendment and restatement of The Scotts Miracle-Gro Company Long-Term Incentive Plan to, among other things, increase the maximum number of common shares available for grant to participants.
Is there a second to the motion?
I'll second the motion.
As a person appointed as an official proxy, I report that I have voted in accordance with the proxies received from shareholders. Ms. Pavich, may I have your report of the vote regarding the amendment and restatement of The Scotts Miracle-Gro Company's Long-Term Incentive Plan?
Mr. Smith, I report that not less than 44,242,754 votes were received for approval of the amendment and restatement of The Scotts Miracle-Gro Company's Long-Term Incentive Plan.
I hereby declare that the shareholders have approved the amendment and restatement of The Scotts Miracle-Gro Company's Long-Term Incentive Plan. The meeting will now proceed to consideration of proposal number five. I recognize Denise Stump for the purpose of presenting the proposal.
I hereby move that shareholders approve on an advisory basis the frequency of future shareholder advisory votes on the compensation of the company's named executive officers.
Is there a second to the motion?
I second the motion.
As a person appointed as an official proxy, I report that I have voted in accordance with the proxies received from shareholders. Ms. Pavich, may I have your report on the frequency of future shareholder advisory votes on the compensation of the company's named executive officers?
Mr. Smith, I report that the option of every one year as the preferred frequency of future advisory votes on executive compensation has received the most votes.
I hereby declare that every one year is the preferred frequency of future advisory votes on executive compensation. Mr. Chairman, this concludes the formal business portion of our meeting.
Thank you, Ivan. Now I'd like to open things up for shareholder questions and comments. Please note I'll attempt to answer as many questions or comments as time allows, but only questions that are germane to the meeting will be addressed.
Mr. Chairman, there have been no questions submitted by shareholders this morning.
Okay. I guess we're done. Thank you very much for your continued support. There being no further business to come before this meeting, the 2022 annual meeting of the shareholders of The Scotts Miracle-Gro Company is now adjourned.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.