AXALTA COATING SYSTEMS LTD., DEF 14A filed on 4/24/2024
Proxy Statement (definitive)
v3.24.1.u1
Cover
 12 Months Ended
Dec. 31, 2023
Document Information [Line Items]  
Document Type DEF 14A
Amendment Flag false
Entity Information [Line Items]  
Entity Registrant Name AXALTA COATING SYSTEMS LTD.
Entity Central Index Key 0001616862
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
 4 Months Ended 8 Months Ended 12 Months Ended
Dec. 31, 2022
Aug. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pay vs Performance Disclosure            
Pay vs Performance Disclosure, Table    
PAY VERSUS PERFORMANCE
 
As required by Section 953(a) of 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 executive compensation actually paid (as computed in accordance with SEC rules) and certain financial
performance of the Company. For further information concerning the Company’s compensation philosophy and how the Company aligns executive compensation with the Company’s performance, refer to “Compensation Discussion and Analysis” above.
 
Pay Versus Performance Table
 
Year
  
Summary
Compensation
Table Total for
First PEO ($)
(1)
    
Summary
Compensation
Table Total for
Second PEO
($)
(1)
    
Compensation
Actually Paid
to First PEO
($)
(1)
    
Compensation
Actually Paid
to Second
PEO ($)
(1)
    
Average
Summary
Compensation
Table Total for
Non-PEO

NEOs ($)
(2)
    
Average
Compensation
Actually Paid
to
Non-PEO

NEOs ($)
(2)
    
Value of Initial Fixed $100
Investment Based On:
    
Net
Income
($ millions)
    
Selected
Measure:
Adjusted
EBIT
($ millions)
(4)
  
 
Total
Shareholder
Return
    
Peer Group
Total
Shareholder
Return
(3)
  
(a)
     (b)(1)       (b)(2)       (c)(1)       (c)(2)       (d)       (e)       (f)       (g)       (h)       (i)  
2023
     9,694,005       N/A       11,810,556       N/A       3,304,165       3,703,188     $ 111.74     $ 165.83     $ 269     $ 664  
2022
     10,614,474       6,602,134       1,261,318       4,482,433       3,972,278       2,812,149     $ 83.78     $ 142.31     $ 192     $ 633  
2021
     6,775,219       N/A       4,817,133       N/A       2,255,922       2,040,574     $ 108.95     $ 146.30     $ 264     $ 620  
2020
     6,473,355       N/A       2,367,048       N/A       2,257,115       799,916     $ 93.91     $ 118.05     $ 122     $ 537  
 
(1)
The first PEO for 2023 was Mr. Villavarayan, our CEO, and the only PEO during 2023. The first PEO for 2022, 2021 and 2020 was Robert Bryant who served as our CEO for the full years of 2020 and 2021 and through August 31, 2022 for 2022. The second PEO for 2022 was our current Board Chair, Mr. Sachdev, who served as our interim CEO from August 31, 2022 through December 31, 2022. The dollar amounts reported in column (b)(1) for the first PEO are the amounts of total compensation reported for Mr. Villavarayan for 2023 and for Mr. Bryant for 2022, 2021 and 2020 in the “Total” column of the Summary Compensation Table in the Company’s proxy statement for each such applicable year. The dollar amount reported in column (b)(2) for the second PEO is the amount of total compensation reported for Mr. Sachdev for 2022 in the “Total” column of the Summary Compensation Table in the Company’s proxy statement for such year. Reconciliation of Compensation Actually Paid for all PEOs reported in columns (c)(1) and (c)(2) are set forth below.
(2)
The dollar amounts reported in column (d) represent the average of the amounts reported for the Company’s NEOs as a group, excluding Mr. Villavarayan for 2023, Mr. Bryant for 2022, 2021 and 2020 and Mr. Sachdev for 2022 in the “Total” column of the Summary Compensation Table in each applicable year. The NEOs (excluding Messrs. Villavarayan, Bryant and Sachdev) for purposes of calculating the average amounts in each applicable year are as follows: (a) for 2023, Messrs. Anderson, Lannon, Berube, Weaver and Awada; (b) for 2022, Messrs. Lannon, Weaver, Berube and Awada; (c) for 2021, Messrs. Lannon and Berube and Shelley Bausch, current President, Global Industrial Coating (then our Senior Vice President, Global Industrial Coatings), and Jacqueline Scanlan, former Senior Vice President and Chief Human Resources Officer; and (d) for 2020, Messrs. Lannon, Berube, Weaver and Awada and Steven Markevich, former Executive Vice President and President, Transportation Coatings and Greater China. A reconciliation of Average Compensation Actually Paid to
Non-PEO
NEOs reported in column (e) is set forth below.
(3)
For each year, total shareholder return for the Company and the peer group was calculated in accordance with Item 201(e) and Item 402(v) of Regulation
S-K.
For purposes of this pay versus performance disclosure, our peer group is the same peer group used for purposes of the performance graph included in the Company’s Annual Reports on Form
10-K
and reflects the S&P 400 Materials index for the fiscal years ended December 31, 2023, 2022 and 2021 and the S&P 500 Chemicals Index for the fiscal year ended December 31, 2020.
(4)
The Company has determined that Adjusted EBIT is the financial performance measure that, in the Company’s assessment, represents the most important performance measure (that is not otherwise required to be disclosed in the table) used by the Company to link compensation actually paid to the Company’s NEOs for the most recently completed fiscal year. As described in “Compensation Discussion and Analysis” above, Adjusted EBIT for compensation purposes is Adjusted EBIT, as externally reported for the applicable fiscal year, further adjusted to reflect certain items for each such fiscal year as described in the “Compensation Discussion and Analysis” above for 2023. For consistency of presentation, Adjusted EBIT for 2020 and 2021 is shown as defined for each year, both as described in the Company’s definitive proxy statements filed on April 22, 2022 and March 29, 2021 for 2021 and 2020, respectively, in each case plus
step-up
depreciation and amortization.
A reconciliation of the PEO Summary Compensation Table total compensation to the Compensation Actually Paid (“CAP”) is provided in the
following
tables for each PEO shown in the table above.
 
 
 
 
 
First PEO SCT Total Compensation to CAP Reconciliation
 
Year
   
Summary
Compensation
Table Total for
First PEO ($)
     
Minus 
SCT
Equity
Awards ($)
     
Plus
Year End
Fair Value of
Equity Awards
Granted in the
Year that are
outstanding and
unvested ($)
     
Plus
Year over
Year Change
in Fair Value
of Outstanding
and Unvested
Equity Awards
Granted in
Prior Years ($)
     
Plus
 Year over
Year Change
in Fair Value
of Equity
Awards
Granted in
Prior Years
that Vested in
the Year ($)
     
Minus
Fair
Value at the
End of the
Prior Year of
Equity
Awards that
Failed to
Meet Vesting
Conditions in
the Year ($)
     
Compensation
Actually
Paid
for First
PEO ($)
  
2023
      9,694,005        -6,397,949        8,514,500        0        0        0        11,810,556  
2022
      10,614,474        -4,877,099        0        0        -17,101        -4,458,956        1,261,318  
2021
      6,775,219        -4,670,206        3,738,946        -959,254        -67,571        0        4,817,133  
2020
      6,473,355        -4,434,836        2,678,297        -1,476,578        -471,539        -401,652        2,367,048  
Second PEO SCT Total Compensation to CAP Reconciliation
 
Year
   
Summary
Compensation
Table Total for
Second PEO ($)
     
Minus 
SCT
Equity
Awards ($)
     
Plus
Year End
Fair Value of
Equity Awards
Granted in the
Year that are
outstanding and
unvested ($)
     
Plus
Year over
Year Change
in Fair Value
of Outstanding
and Unvested
Equity Awards
Granted in
Prior Years ($)
     
Plus
 Year over
Year Change
in Fair Value
of Equity
Awards
Granted in
Prior Years
that Vested in
the Year ($)
     
Minus
Fair
Value at the
End of the
Prior Year of
Equity
Awards that
Failed to
Meet Vesting
Conditions in
the Year ($)
     
Compensation
Actually
Paid
for Second
PEO ($)
  
2023
      N/A        N/A        N/A        N/A        N/A        N/A        N/A  
2022
      6,602,134        -6,199,964        4,133,170        0        -52,907        0        4,482,433  
2021
      N/A        N/A        N/A        N/A        N/A        N/A        N/A  
2020
      N/A        N/A        N/A        N/A        N/A        N/A        N/A  
A reconciliation of the average
Non-PEO
NEO Summary Compensation Table total compensation to CAP is provided in the following table.
Average
Non-PEO
NEOs SCT Total Compensation to CAP Reconciliation
 
Year
   
Summary
Compensation
Table Total for
Non-PEO

NEOs ($)
     
Minus 
SCT
Equity
Awards ($)
     
Plus
 Year End
Fair Value of
Equity Awards
Granted in the
Year that are
outstanding and
unvested ($)
     
Plus
Year over
Year Change
in Fair Value
of Outstanding
and Unvested
Equity Awards
Granted in
Prior Years ($)
     
Plus
 Year over
Year Change
in Fair Value
of Equity
Awards
Granted in
Prior Years
that Vested in
the Year ($)
     
Minus
Fair
Value at the
End of the
Prior Year of
Equity
Awards that
Failed to
Meet Vesting
Conditions in
the Year ($)
     
Compensation
Actually
Paid
for
Non-PEO

NEOs ($)
  
2023
      3,304,165        -1,747,784        1,942,007        185,237        176,711        -157,148        3,703,188  
2022
      3,972,278        -2,241,421        1,689,708        -473,166        -101,196        -34,053        2,812,149  
2021
      2,255,922        -1,328,274        1,185,299        -88,626        16,253        0        2,040,574  
2020
      2,257,115        -1,013,473        439,929        -193,334        -130,871        -559,448        799,916  
The seven items listed below represent the most important financial performance measures used by the Company to link compensation actually paid to our NEOs for 2023 to the Company’s financial performance.
     
Company Selected Measure Name     Adjusted EBIT      
Named Executive Officers, Footnote     The dollar amounts reported in column (d) represent the average of the amounts reported for the Company’s NEOs as a group, excluding Mr. Villavarayan for 2023, Mr. Bryant for 2022, 2021 and 2020 and Mr. Sachdev for 2022 in the “Total” column of the Summary Compensation Table in each applicable year. The NEOs (excluding Messrs. Villavarayan, Bryant and Sachdev) for purposes of calculating the average amounts in each applicable year are as follows: (a) for 2023, Messrs. Anderson, Lannon, Berube, Weaver and Awada; (b) for 2022, Messrs. Lannon, Weaver, Berube and Awada; (c) for 2021, Messrs. Lannon and Berube and Shelley Bausch, current President, Global Industrial Coating (then our Senior Vice President, Global Industrial Coatings), and Jacqueline Scanlan, former Senior Vice President and Chief Human Resources Officer; and (d) for 2020, Messrs. Lannon, Berube, Weaver and Awada and Steven Markevich, former Executive Vice President and President, Transportation Coatings and Greater China. A reconciliation of Average Compensation Actually Paid to
Non-PEO
NEOs reported in column (e) is set forth below. 		     
Peer Group Issuers, Footnote     For each year, total shareholder return for the Company and the peer group was calculated in accordance with Item 201(e) and Item 402(v) of Regulation
S-K.
For purposes of this pay versus performance disclosure, our peer group is the same peer group used for purposes of the performance graph included in the Company’s Annual Reports on Form
10-K
and reflects the S&P 400 Materials index for the fiscal years ended December 31, 2023, 2022 and 2021 and the S&P 500 Chemicals Index for the fiscal year ended December 31, 2020. 		     
Adjustment To PEO Compensation, Footnote    
A reconciliation of the PEO Summary Compensation Table total compensation to the Compensation Actually Paid (“CAP”) is provided in the
following
tables for each PEO shown in the table above.
 
 
 
 
 
First PEO SCT Total Compensation to CAP Reconciliation
 
Year
   
Summary
Compensation
Table Total for
First PEO ($)
     
Minus 
SCT
Equity
Awards ($)
     
Plus
Year End
Fair Value of
Equity Awards
Granted in the
Year that are
outstanding and
unvested ($)
     
Plus
Year over
Year Change
in Fair Value
of Outstanding
and Unvested
Equity Awards
Granted in
Prior Years ($)
     
Plus
 Year over
Year Change
in Fair Value
of Equity
Awards
Granted in
Prior Years
that Vested in
the Year ($)
     
Minus
Fair
Value at the
End of the
Prior Year of
Equity
Awards that
Failed to
Meet Vesting
Conditions in
the Year ($)
     
Compensation
Actually
Paid
for First
PEO ($)
  
2023
      9,694,005        -6,397,949        8,514,500        0        0        0        11,810,556  
2022
      10,614,474        -4,877,099        0        0        -17,101        -4,458,956        1,261,318  
2021
      6,775,219        -4,670,206        3,738,946        -959,254        -67,571        0        4,817,133  
2020
      6,473,355        -4,434,836        2,678,297        -1,476,578        -471,539        -401,652        2,367,048  
Second PEO SCT Total Compensation to CAP Reconciliation
 
Year
   
Summary
Compensation
Table Total for
Second PEO ($)
     
Minus 
SCT
Equity
Awards ($)
     
Plus
Year End
Fair Value of
Equity Awards
Granted in the
Year that are
outstanding and
unvested ($)
     
Plus
Year over
Year Change
in Fair Value
of Outstanding
and Unvested
Equity Awards
Granted in
Prior Years ($)
     
Plus
 Year over
Year Change
in Fair Value
of Equity
Awards
Granted in
Prior Years
that Vested in
the Year ($)
     
Minus
Fair
Value at the
End of the
Prior Year of
Equity
Awards that
Failed to
Meet Vesting
Conditions in
the Year ($)
     
Compensation
Actually
Paid
for Second
PEO ($)
  
2023
      N/A        N/A        N/A        N/A        N/A        N/A        N/A  
2022
      6,602,134        -6,199,964        4,133,170        0        -52,907        0        4,482,433  
2021
      N/A        N/A        N/A        N/A        N/A        N/A        N/A  
2020
      N/A        N/A        N/A        N/A        N/A        N/A        N/A  
      
Non-PEO NEO Average Total Compensation Amount     $ 3,304,165 $ 3,972,278 $ 2,255,922 $ 2,257,115
Non-PEO NEO Average Compensation Actually Paid Amount     $ 3,703,188 2,812,149 2,040,574 799,916
Adjustment to Non-PEO NEO Compensation Footnote    
A reconciliation of the average
Non-PEO
NEO Summary Compensation Table total compensation to CAP is provided in the following table.
Average
Non-PEO
NEOs SCT Total Compensation to CAP Reconciliation
 
Year
   
Summary
Compensation
Table Total for
Non-PEO

NEOs ($)
     
Minus 
SCT
Equity
Awards ($)
     
Plus
 Year End
Fair Value of
Equity Awards
Granted in the
Year that are
outstanding and
unvested ($)
     
Plus
Year over
Year Change
in Fair Value
of Outstanding
and Unvested
Equity Awards
Granted in
Prior Years ($)
     
Plus
 Year over
Year Change
in Fair Value
of Equity
Awards
Granted in
Prior Years
that Vested in
the Year ($)
     
Minus
Fair
Value at the
End of the
Prior Year of
Equity
Awards that
Failed to
Meet Vesting
Conditions in
the Year ($)
     
Compensation
Actually
Paid
for
Non-PEO

NEOs ($)
  
2023
      3,304,165        -1,747,784        1,942,007        185,237        176,711        -157,148        3,703,188  
2022
      3,972,278        -2,241,421        1,689,708        -473,166        -101,196        -34,053        2,812,149  
2021
      2,255,922        -1,328,274        1,185,299        -88,626        16,253        0        2,040,574  
2020
      2,257,115        -1,013,473        439,929        -193,334        -130,871        -559,448        799,916  
The seven items listed below represent the most important financial performance measures used by the Company to link compensation actually paid to our NEOs for 2023 to the Company’s financial performance.
     
Compensation Actually Paid vs. Total Shareholder Return          
Compensation Actually Paid vs. Net Income          
Compensation Actually Paid vs. Company Selected Measure          
Total Shareholder Return Vs Peer Group          
Tabular List, Table    
Most Important Measures Used by Axalta to Link Executive Compensation Actually Paid to Company Performance
Adjusted EBIT
Free Cash Flow
Adjusted EBIT Margin
Adjusted EBITDA
Relative Total Shareholder Return
Adjusted EPS
Return on Invested Capital
 
 
 
 
 
Please see “Annual Performance-Based Compensation” and “Long-Term Equity Incentive Awards” beginning on
pages 50 and 53, respectively, for descriptions of how these metrics are used in our executive compensation program.
     
Total Shareholder Return Amount     $ 111.74 83.78 108.95 93.91
Peer Group Total Shareholder Return Amount     165.83 142.31 146.3 118.05
Net Income (Loss)     $ 269,000,000 $ 192,000,000 $ 264,000,000 $ 122,000,000
Company Selected Measure Amount     664,000,000 633,000,000 620,000,000 537,000,000
Measure:: 1            
Pay vs Performance Disclosure            
Name     Adjusted EBIT      
Measure:: 2            
Pay vs Performance Disclosure            
Name     Free Cash Flow      
Measure:: 3            
Pay vs Performance Disclosure            
Name     Adjusted EBIT Margin      
Measure:: 4            
Pay vs Performance Disclosure            
Name     Adjusted EBITDA      
Measure:: 5            
Pay vs Performance Disclosure            
Name     Relative Total Shareholder Return      
Measure:: 6            
Pay vs Performance Disclosure            
Name     Adjusted EPS      
Measure:: 7            
Pay vs Performance Disclosure            
Name     Return on Invested Capital      
Mr. Villavarayan [Member]            
Pay vs Performance Disclosure            
PEO Total Compensation Amount     $ 9,694,005      
PEO Actually Paid Compensation Amount     $ 11,810,556      
PEO Name     Mr. Villavarayan      
Mr. Sachdev [Member]            
Pay vs Performance Disclosure            
PEO Total Compensation Amount       $ 6,602,134    
PEO Actually Paid Compensation Amount       4,482,433    
PEO Name Mr. Sachdev          
Robert Bryant [Member]            
Pay vs Performance Disclosure            
PEO Total Compensation Amount       10,614,474 $ 6,775,219 $ 6,473,355
PEO Actually Paid Compensation Amount       $ 1,261,318 $ 4,817,133 2,367,048
PEO Name   Robert Bryant   Robert Bryant Robert Bryant  
PEO | Mr. Villavarayan [Member] | Equity Awards [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     $ (6,397,949)      
PEO | Mr. Villavarayan [Member] | Year End Fair Value of Equity Awards Granted in the Year that are outstanding and unvested [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     8,514,500      
PEO | Mr. Villavarayan [Member] | Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Granted in Prior Years [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     0      
PEO | Mr. Villavarayan [Member] | Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     0      
PEO | Mr. Villavarayan [Member] | Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     0      
PEO | Mr. Sachdev [Member] | Equity Awards [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       $ (6,199,964)    
PEO | Mr. Sachdev [Member] | Year End Fair Value of Equity Awards Granted in the Year that are outstanding and unvested [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       4,133,170    
PEO | Mr. Sachdev [Member] | Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Granted in Prior Years [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       0    
PEO | Mr. Sachdev [Member] | Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       (52,907)    
PEO | Mr. Sachdev [Member] | Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       0    
PEO | Robert Bryant [Member] | Equity Awards [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       (4,877,099) $ (4,670,206) (4,434,836)
PEO | Robert Bryant [Member] | Year End Fair Value of Equity Awards Granted in the Year that are outstanding and unvested [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       0 3,738,946 2,678,297
PEO | Robert Bryant [Member] | Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Granted in Prior Years [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       0 (959,254) (1,476,578)
PEO | Robert Bryant [Member] | Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       (17,101) (67,571) (471,539)
PEO | Robert Bryant [Member] | Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount       (4,458,956) 0 (401,652)
Non-PEO NEO | Equity Awards [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     (1,747,784) (2,241,421) (1,328,274) (1,013,473)
Non-PEO NEO | Year End Fair Value of Equity Awards Granted in the Year that are outstanding and unvested [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     1,942,007 1,689,708 1,185,299 439,929
Non-PEO NEO | Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Granted in Prior Years [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     185,237 (473,166) (88,626) (193,334)
Non-PEO NEO | Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     176,711 (101,196) 16,253 (130,871)
Non-PEO NEO | Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year [Member]            
Pay vs Performance Disclosure            
Adjustment to Compensation, Amount     $ (157,148) $ (34,053) $ 0 $ (559,448)