Teradyne, Inc. (TER) — ESG & Values Scores

Environment story

Teradyne discloses limited environmental data in filings reviewed. No Scope 1, 2, or 3 emissions figures are provided in 10-K or proxy materials. Net-zero target date is undisclosed. The company acknowledges the Board's oversight of sustainability and climate-related matters through the Nominating and Corporate Governance Committee, but quantitative commitments, renewable energy percentages, and decarbonization initiatives are absent from public disclosures. Risk factor discussions note tariff and trade policy exposure but do not address operational carbon intensity. Without verified emissions data, renewable energy adoption metrics, or credible net-zero timelines, the environmental pillar receives a baseline deduction for non-disclosure.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Board Oversight of Sustainability

Nominating and Corporate Governance Committee reviews overall sustainability strategy and goals, climate-related matters, and CSR Report. Responsible Business Steering Team reports to CEO and CFO on sustainability program; Responsible Business Working Team develops long-term strategy and annual goals.
Responsible Business Program

Company maintains a sustainability program with cross-functional governance structure and regular reporting to Board; CSR Report published annually with sustainability initiatives.

Social story

Teradyne reports a diverse and engaged workforce across global operations (~6,600 employees in 2025). The company discloses Board and leadership diversity targets, with refreshment efforts resulting in five new directors in past five years, including diverse candidates. CEO-to-median-worker pay ratio is not explicitly disclosed in filings, preventing precise calculation; however, CEO base salary ($980,000 in 2025) and total named executive officer compensation levels suggest a likely ratio within acceptable range absent contrary evidence. No documented union-suppression activities, major strikes, or significant labor disputes are disclosed in 10-K or proxy. Supply-chain audits and human-rights hazard mitigation are mentioned as part of the 'responsible business' framework but lack granular detail. Diversity statements in governance materials confirm commitment to talent management and human capital oversight.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Board Diversity and Refreshment

Five of nine current directors were elected for the first time in the past five years. Two new independent directors (Drew Henry, Necip Sayiner) appointed June 2025 to bring semiconductor and AI expertise. Board demographics and composition reviewed annually by Nominating and Corporate Governance Committee.

Ongoing Board refreshment and inclusion of diverse skill sets aligned with strategic priorities.
Workforce and Human Capital Oversight

Board and Compensation Committee oversee talent management, employee health, safety and welfare. Company emphasizes attraction, development and retention of high-performance workforce with shared values. Responsible Business Steering Team coordinates human capital strategy.

Structured framework for human capital management; annual review of compensation impact on risk.
Employee Stock Purchase Plan and Equity Programs

Employees participate in ESPP and receive restricted stock units and stock options as part of variable compensation. Equity compensation tied to performance metrics and shareholder alignment.

Broad-based employee equity ownership and incentive alignment.

Governance story

Teradyne exhibits strong governance structure: independent Board Chair (Paul Tufano since May 2021), eight of nine directors are independent, all standing committees comprise independent directors. Board meets five times annually with average attendance of 97.78%; directors 75%+ attendance compliance verified. Single-class share structure with equal voting rights; directors elected annually by majority vote. Dual-class structure absent. Board Independence is 88.9% (8 of 9 directors independent). Risk oversight includes cybersecurity, AI governance, enterprise risk management, strategy, and succession planning. Annual Board and committee self-assessments conducted. Related-party transaction policy enforced by Audit Committee with pre-approval for certain categories. Overboarding policy limits public company board service to four seats. No material antitrust, consumer-safety, or SEC consent decrees disclosed. Political contributions now subject to enhanced oversight following 2025 shareholder proposal receiving >50% support; political spending policies enhanced and trade association disclosure committed for 2026 CSR Report. No evidence of active lobbying to weaken environmental or consumer-protection regulations.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Independent Board Leadership

Paul J. Tufano serves as independent Board Chair since May 2021. Separate CEO (Gregory S. Smith appointed 2023) and Chair roles; all executive sessions held without management; Chair coordinates Board activities, develops agendas, and moderates independent director sessions.

Clear separation of powers; independent oversight of management.
Enhanced Political Spending Governance

Following 2025 shareholder proposal on political contributions receiving >50% vote, Board implemented responsive actions: incorporated political-spending oversight into Nominating and Corporate Governance Committee charter; adopted enhanced policies governing political contributions and expenditures; committed to disclosing trade association membership and contributions in 2026 CSR Report.

Proactive shareholder engagement response; improved transparency on political spending.
Enterprise Risk Management and Cybersecurity Oversight

Audit Committee receives regular reports from CISO, Chief Financial Officer, Corporate Controller, and Internal Audit on cybersecurity, information security, and technology security risks. Cybersecurity Steering Committee chaired by CISO reviews threats, program performance, and risk mitigations; cyber risks integrated into ERM process; Board briefed on moderate+ impact incidents.

Structured cybersecurity governance with Board and committee-level oversight.
Artificial Intelligence Governance

Board (with Nominating and Corporate Governance Committee and Audit Committee coordination) oversees AI governance and risk management for product development, service delivery, and internal operations. Cross-functional AI Governance and Risk Management Committee led by executive management reports to Board quarterly.

Nascent AI governance framework established to manage emerging technology risks.
Annual Compensation Risk Assessment

Compensation Committee reviews and assesses impact of compensation programs on Company risk annually; receives reports from HR, compensation teams, and legal on risk management practices as applied to incentive compensation.

Structured review to ensure compensation does not incentivize excessive risk-taking.
Board and Committee Self-Assessments

Annual Board self-assessments and committee self-assessments; annual CEO performance evaluation; annual director independence review; annual review of non-employee director compensation against cap on aggregate total annual compensation.

Continuous governance assessment and refinement.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Teradyne, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Teradyne, Inc. in the app for interactive charts and portfolio building.

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