Somnigroup International (formerly Tempur Sealy)
Rating Overview
Rating Criteria
Rating Criteria Detail
Corporate Weaponization
Criteria:
Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.
Risk Level:
MediumRationale:
Somnigroup International integrates ESG into its business practices. From its 2022 Corporate Social Values Report: “On February 16, 2024, the Compensation Committee of the Board of Directors determined that the performance conditions for the performance restricted stock units (PRSUs) granted on January 4, 2023 met the following thresholds: 177% of the target PRSU award based on adjusted EBITDA, 300% of the target PRSU award based on Relative TSR Percentile and 300% of the target PRSU award based upon qualitative ESG performance, resulting in an overall performance score of 200%. The PRSUs vested/will vest in approximately three equal installments on January 4, 2025, 2026 and 2027” (1). However, Somnigroup has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (2).
Criteria:
Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.
Risk Level:
LowerCriteria:
Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.
Risk Level:
HighRationale:
Somnigroup International appears to prioritize diversity over merit in its leadership composition. From its 2026 Proxy Statement: “consideration is given to having a diversity of background, experience, skill and perspective among the Directors, and that the Directors represent a range of differing professional positions, industry sectors, expertise and geographic representation. In addition, the Nominating and Corporate Governance Committee is responsible for considering the tenure of existing Directors and longer-term Board composition transition issues. The Board does not have a specific policy with respect to the diversity of its Directors” (1). Somnigroup International does not provide viewpoint protections for its employees (2).
Corporate Governance and Public Policy
Criteria:
Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.
Risk Level:
MediumRationale:
Somnigroup is committed to carbon neutrality by 2040 (1). Somnigroup supports ESG within its business practices. From its 2025 Corporate Social Values Report: “Our Corporate Social Values wheel outlines the values realized by our Board of Directors, executive management team, and global workforce. We believe that our commitment to robust environmental, social, and governance (“ESG”) practices unlocks stockholder value and contributes to our long-term growth by helping us identify and manage associated risks and opportunities most relevant to our business” (2). Otherwise, the company has not supported ideological causes or policies (3).
Criteria:
Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.
Risk Level:
LowerRationale:
Somnigroup has not used corporate funds to advance ideological causes, organizations, or policies (1).