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Governance
Corporate Governance
Advanced Energy is committed to strong corporate governance, ethical business conduct, and accountability to shareholders. We regularly assess our governance practices against evolving regulatory requirements, stakeholder feedback, and leading practices.
The Board of Directors oversees our business, strategy, risk management, and compliance programs, including strategic planning, internal controls, and public disclosures. We maintain separate Board Chair and CEO roles, a supermajority of independent directors with the CEO as the only insider director, an average Board tenure of approximately eight years, and female representation of 30% of Board members.
Advanced Energy is committed to strong corporate governance, ethical business conduct, and accountability to shareholders. We regularly assess our governance practices against evolving regulatory requirements, stakeholder feedback, and leading practices.
The Board of Directors oversees our business, strategy, risk management, and compliance programs, including strategic planning, internal controls, and public disclosures. We maintain separate Board Chair and CEO roles, a supermajority of independent directors with the CEO as the only insider director, an average Board tenure of approximately eight years, and female representation of 30% of Board members.
ESG OVERSIGHT
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The Executive Vice President and General Counsel maintains accountability for ESG-related matters, while the Executive Vice President and Chief Operations Officer oversees environmental initiatives and related operational programs.
Oversight of sustainability matters is integrated into our governance structure:
The Executive Vice President and General Counsel maintains accountability for ESG-related matters, while the Executive Vice President and Chief Operations Officer oversees environmental initiatives and related operational programs.
Our Code of Ethical Conduct applies to all employees, officers, Board members, and contractors, establishing expectations for ethical decision-making, legal compliance, respectful conduct, and accountability. Our core expectations are to be honest; treat others with respect; comply with the laws, regulations, and AE policies applicable to your role; complete training assignments in a timely manner; and speak up if you encounter a situation that doesn’t feel right.
The Code provides guidance across a wide range of risk areas, including conflicts of interest, insider trading, anticorruption, antitrust and competition, trade compliance, government contracting, anti-slavery and human trafficking, privacy, and raising concerns. It is available in several languages.
COMPLIANCE PROGRAMS AND TRAINING
We maintain a comprehensive compliance program supporting ethical conduct, regulatory compliance, and risk management, backed by mandatory training, policy communication, and ongoing oversight. We have a 100% completion rate for directors and above on the Global Policy Acknowledgement, and a 95% or greater completion rate for other Legal Compliance training. We are developing custom, multilingual compliance training content aligned with our risk profile and global workforce.
RAISING CONCERNS
Employees may seek guidance or report actual or perceived violations through management, Human Resources, Legal Compliance, the Company’s General Counsel, or by contacting legalcompliance@aei.com. We also maintain a 24-hour whistleblower hotline via AdvancedEnergy.ethicspoint.com, a confidential third-party platform available globally. Reports may be submitted anonymously, and retaliation is not tolerated.
RISK MANAGEMENT AND BUSINESS RESILIENCY
We maintain an enterprise risk management framework to identify, assess, and manage risks that may impact strategy, operations, financial performance, or reputation. Our Business Resilience Planning management system is aligned with ISO 22301 and includes an enterprise-wide Business Continuity Plan, Crisis Management Plan, Disaster Recovery Plan, and site-specific Emergency Response Plans.
CYBERSECURITY
Our cybersecurity program is periodically evaluated by independent assessors against the NIST Cybersecurity Framework, consistently placing at or above industry benchmarks with improving maturity ratings year over year. We maintain incident response and disaster recovery plans tested through tabletop exercises, including an annual corporate cyber incident response exercise facilitated by an external third party.
We have established governance for the responsible and secure adoption of artificial intelligence, including acceptable-use standards, review of AI tools prior to deployment, and controls designed to protect company and customer data. All employees receive cybersecurity training during onboarding and annually, supported by regular phishing simulations and monthly security communications.
DATA PRIVACY
We maintain a data privacy program designed to comply with applicable privacy laws and regulations, including the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act/California Privacy Rights Act (CCPA/CPRA).