AVANTOR, INC., DEF 14A filed on 3/29/2024
Proxy Statement (definitive)
v3.24.1
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 AVANTOR, INC.
Entity Central Index Key 0001722482
v3.24.1
Pay vs Performance Disclosure - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pay vs Performance Disclosure        
Pay vs Performance Disclosure, Table
PAY VERSUS PERFORMANCE DISCLOSURE TABLE
The following table sets forth the compensation for our PEO and the average compensation for our
Non-PEO
NEOs, both as reported in the Summary Compensation Table and with certain adjustments to reflect the compensation actually paid (“CAP”) to such individuals, as defined under SEC rules, for each of 2023, 2022, 2021 and 2020. The table also provides information on our cumulative total stockholder return (“TSR”), the cumulative TSR of our peer group, Net Income and Adjusted EBITDA over such years in accordance with SEC rules.
Pay Versus Performance Table
 
 
LOGO
 
 
Year
  
Summary
Compensation
on Table Total
for PEO
(1)
  
Compensation
Actually Paid
to PEO
(2)
 
Average
Summary
Compensation
Table Total
for
Non-PEO

NEOs
(1)
  
Average
Compensation
Actually Paid
to
Non-PEO

NEOs
(2)
 
Value of Initial Fixed
$100 Investment
    Based On:    
  
Net
Income
(4)

(millions)
  
Company
Selected
Measure
(Adjusted
EBITDA)
(5)

(millions)
 
Avantor
Total
Stockholder
Return
(3)
  
Peer Group
Total
Stockholder
Return
(a)
  
(b)
  
(c)
 
(d)
  
(e)
 
(f)
  
(g)
  
(h)
  
(i)
                                     
2023
    
$
12,338,767
    
$
8,925,771
   
$
3,683,836
    
$
2,493,597
   
$
125.79
    
$
143.18
    
$
321.1
    
$
1309.1
2022
    
$
10,831,766
    
$
(28,632,167
)
   
$
2,553,081
    
$
(7,183,678
)
   
$
116.20
    
$
140.29
    
$
686.5
    
$
1,570.7
2021
    
$
13,260,913
    
$
45,709,309
   
$
3,538,486
    
$
12,019,256
   
$
232.18
    
$
143.09
    
$
572.6
    
$
1,458.6
2020
    
$
11,257,062
    
$
33,997,170
   
$
4,588,288
    
$
10,679,332
   
$
155.10
    
$
113.45
    
$
116.6
    
$
1,141.6
Notes:
 
(1)
Compensation for our PEO, Michael Stubblefield, reflects the amounts reported in the “Summary Compensation Table” for the respective years. Average compensation for our
non-PEO
NEOs included: (a) for 2023, R. Brent Jones, Randy Stone, James Bramwell, Frederic Vanderhaegen, Gerard Brophy and Thomas Szlosek; (b) for 2022 and 2021, Thomas Szlosek, Frederic Vanderhaegen, Gerard Brophy and Sheri Lewis; and (c) for 2020, Thomas Szlosek, Frederic Vanderhaegen, Gerard Brophy and Michael Wondrasch.
 
(2)
Compensation “actually paid” for the PEO and average compensation “actually paid” for our
non-PEOs
NEOs in each of 2023, 2022, 2021 and 2020 reflects the respective amounts set forth in columns (b) and (d) of the table above, adjusted as set forth in the tables below, as determined in accordance with SEC rules. The dollar amounts reflected in columns (b) and (d) of the table above do not reflect the actual amount of compensation earned by or paid to the PEO and our other
Non-PEO
NEOs during the applicable year. For additional information regarding the decisions made by our Compensation and Human Resources Committee in regard to the PEO’s and our other
Non-PEO
NEOs’ compensation for fiscal year 2023, refer to “Compensation Discussion and Analysis – Compensation Philosophy & Objectives – How We Make Compensation Decisions.”
 
 
PEO Summary Compensation Table Total to Compensation Actually Paid Reconciliation:
 
LOGO
 
PEO: Michael Stubblefield
  
2023
   
2022
   
2021
   
2020
 
Total Compensation as reported in SCT
  
$
12,338,767
 
 
$
10,831,766
 
 
$
13,260,913
 
 
$
11,257,062
 
Subtract change in the actuarial present value of pension benefits
  
$
(7,895
 
$
 
 
$
(5,342
 
$
(6,272
Add service cost of pension benefits
  
$
2,684
 
 
$
3,421
 
 
$
3,388
 
 
$
2,875
 
Subtract grant date fair value of equity awards granted during covered year reported in SCT
  
$
 (10,966,272)
 
 
$
(9,684,956
 
$
(8,633,149
 
$
(7,313,957
Add fair value of equity compensation granted in current year – value at
year-end
  
$
7,305,449
 
 
$
3,260,458
 
 
$
18,576,571
 
 
$
16,957,180
 
Add dividends accrued on unvested shares/share units
  
 
 
 
$
 
 
$
 
 
$
 
Add/subtract change in fair value from end of prior fiscal year to end of current fiscal year for awards made in prior fiscal years that were unvested at end of current fiscal year
  
$
(921,458
 
$
(28,816,798
 
$
17,291,985
 
 
$
 10,226,909
 
Add/subtract change in fair value from end of prior fiscal year to vesting date for awards made in prior fiscal years that vested during current fiscal year
  
$
1,174,497
 
 
$
(4,226,057
 
$
5,214,944
 
 
$
2,873,373
 
Subtract fair value of forfeited awards determined at end of prior year for awards made in prior fiscal years that were forfeited during current fiscal year
  
 
 
 
$
 
 
$
 
 
$
 
Compensation Actually Paid to PEO
  
$
8,925,771
 
 
$
(28,632,167
 
$
45,709,309
 
 
$
33,997,170
 
Average
Non-PEO
Summary Compensation Table Total to Compensation Actually Paid Reconciliation:
 
LOGO
 
Non-PEO
NEOs (Average)
  
2023
   
2022
   
2021
   
2020
 
Total Compensation as reported in SCT
  
$
3,683,836
 
 
$
2,553,081
 
 
$
3,538,486
 
 
$
4,588,288
 
Subtract change in the actuarial present value of pension benefits
  
$
(5,613
 
$
(1,726
 
$
(2,787
 
$
(4,428
Add service cost of pension benefits
  
$
1,806
 
 
$
2,495
 
 
$
2,491
 
 
$
982
 
Subtract grant date fair value of equity awards granted during fiscal year reported in SCT
  
$
(3,117,887
 
$
(1,963,157
 
$
(1,861,530
 
$
(3,340,903
Add fair value of equity compensation granted in current year – value at
year-end
  
$
2,221,730
 
 
$
660,865
 
 
$
4,005,523
 
 
$
6,814,068
 
Add dividends accrued on unvested shares/share units
  
 
 
 
$
 
 
$
 
 
$
 
Add/subtract change in fair value from end of prior fiscal year to end of current fiscal year for awards made in prior fiscal years that were unvested at end of current fiscal year
  
$
(81,272
 
$
(6,381,045
 
$
5,398,965
 
 
$
2,303,223
 
Add/subtract change in fair value from end of prior fiscal year to vesting date for awards made in prior fiscal years that vested during current fiscal year
  
$
138,465
 
 
$
(2,054,191
 
$
938,108
 
 
$
318,100
 
Subtract fair value of forfeited awards determined at end of prior year for awards made in prior fiscal years that were forfeited during current fiscal year
  
$
(347,467
 
$
 
 
$
 
 
$
 
Compensation Actually Paid to
Non-PEO
NEOs
  
$
 2,493,597
 
 
$
(7,183,678
 
$
  12,019,256
 
 
$
  10,679,332
 
 
(3)
TSR is cumulative (assuming $100 was invested on December 31, 2019) for the measurement periods beginning on December 31, 2019 and ending on December 31 of each of 2023, 2022, 2021 and 2020, respectively, calculated in accordance with Item 201(e) of Regulation
S-K.
The peer group for purposes of this table is the S&P 500 Health Care Index. Historic stock price performance is not necessarily indicative of future stock performance.
 
(4)
Reflects “Net Income” in the Company’s Consolidated statements of operations included in its Annual Reports on Form
10-K
for each of the years ended December 31, 2023, 2022, 2021 and 2020.
 
(5)
Adjusted EBITDA is the company selected measure and as used in this Proxy Statement is a
non-GAAP
financial measure. See “Appendix A –
Non-GAAP
Financial Measurements” for further discussion on this measure, including a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.
     
Company Selected Measure Name Adjusted EBITDA      
Named Executive Officers, Footnote
(1)
Compensation for our PEO, Michael Stubblefield, reflects the amounts reported in the “Summary Compensation Table” for the respective years. Average compensation for our
non-PEO
NEOs included: (a) for 2023, R. Brent Jones, Randy Stone, James Bramwell, Frederic Vanderhaegen, Gerard Brophy and Thomas Szlosek; (b) for 2022 and 2021, Thomas Szlosek, Frederic Vanderhaegen, Gerard Brophy and Sheri Lewis; and (c) for 2020, Thomas Szlosek, Frederic Vanderhaegen, Gerard Brophy and Michael Wondrasch.
     
Peer Group Issuers, Footnote TSR is cumulative (assuming $100 was invested on December 31, 2019) for the measurement periods beginning on December 31, 2019 and ending on December 31 of each of 2023, 2022, 2021 and 2020, respectively, calculated in accordance with Item 201(e) of Regulation
S-K.
The peer group for purposes of this table is the S&P 500 Health Care Index. Historic stock price performance is not necessarily indicative of future stock performance.
     
PEO Total Compensation Amount $ 12,338,767 $ 10,831,766 $ 13,260,913 $ 11,257,062
PEO Actually Paid Compensation Amount $ 8,925,771 (28,632,167) 45,709,309 33,997,170
Adjustment To PEO Compensation, Footnote
PEO Summary Compensation Table Total to Compensation Actually Paid Reconciliation:
 
LOGO
 
PEO: Michael Stubblefield
  
2023
   
2022
   
2021
   
2020
 
Total Compensation as reported in SCT
  
$
12,338,767
 
 
$
10,831,766
 
 
$
13,260,913
 
 
$
11,257,062
 
Subtract change in the actuarial present value of pension benefits
  
$
(7,895
 
$
 
 
$
(5,342
 
$
(6,272
Add service cost of pension benefits
  
$
2,684
 
 
$
3,421
 
 
$
3,388
 
 
$
2,875
 
Subtract grant date fair value of equity awards granted during covered year reported in SCT
  
$
 (10,966,272)
 
 
$
(9,684,956
 
$
(8,633,149
 
$
(7,313,957
Add fair value of equity compensation granted in current year – value at
year-end
  
$
7,305,449
 
 
$
3,260,458
 
 
$
18,576,571
 
 
$
16,957,180
 
Add dividends accrued on unvested shares/share units
  
 
 
 
$
 
 
$
 
 
$
 
Add/subtract change in fair value from end of prior fiscal year to end of current fiscal year for awards made in prior fiscal years that were unvested at end of current fiscal year
  
$
(921,458
 
$
(28,816,798
 
$
17,291,985
 
 
$
 10,226,909
 
Add/subtract change in fair value from end of prior fiscal year to vesting date for awards made in prior fiscal years that vested during current fiscal year
  
$
1,174,497
 
 
$
(4,226,057
 
$
5,214,944
 
 
$
2,873,373
 
Subtract fair value of forfeited awards determined at end of prior year for awards made in prior fiscal years that were forfeited during current fiscal year
  
 
 
 
$
 
 
$
 
 
$
 
Compensation Actually Paid to PEO
  
$
8,925,771
 
 
$
(28,632,167
 
$
45,709,309
 
 
$
33,997,170
 
     
Non-PEO NEO Average Total Compensation Amount $ 3,683,836 2,553,081 3,538,486 4,588,288
Non-PEO NEO Average Compensation Actually Paid Amount $ 2,493,597 (7,183,678) 12,019,256 10,679,332
Adjustment to Non-PEO NEO Compensation Footnote
Average
Non-PEO
Summary Compensation Table Total to Compensation Actually Paid Reconciliation:
 
LOGO
 
Non-PEO
NEOs (Average)
  
2023
   
2022
   
2021
   
2020
 
Total Compensation as reported in SCT
  
$
3,683,836
 
 
$
2,553,081
 
 
$
3,538,486
 
 
$
4,588,288
 
Subtract change in the actuarial present value of pension benefits
  
$
(5,613
 
$
(1,726
 
$
(2,787
 
$
(4,428
Add service cost of pension benefits
  
$
1,806
 
 
$
2,495
 
 
$
2,491
 
 
$
982
 
Subtract grant date fair value of equity awards granted during fiscal year reported in SCT
  
$
(3,117,887
 
$
(1,963,157
 
$
(1,861,530
 
$
(3,340,903
Add fair value of equity compensation granted in current year – value at
year-end
  
$
2,221,730
 
 
$
660,865
 
 
$
4,005,523
 
 
$
6,814,068
 
Add dividends accrued on unvested shares/share units
  
 
 
 
$
 
 
$
 
 
$
 
Add/subtract change in fair value from end of prior fiscal year to end of current fiscal year for awards made in prior fiscal years that were unvested at end of current fiscal year
  
$
(81,272
 
$
(6,381,045
 
$
5,398,965
 
 
$
2,303,223
 
Add/subtract change in fair value from end of prior fiscal year to vesting date for awards made in prior fiscal years that vested during current fiscal year
  
$
138,465
 
 
$
(2,054,191
 
$
938,108
 
 
$
318,100
 
Subtract fair value of forfeited awards determined at end of prior year for awards made in prior fiscal years that were forfeited during current fiscal year
  
$
(347,467
 
$
 
 
$
 
 
$
 
Compensation Actually Paid to
Non-PEO
NEOs
  
$
 2,493,597
 
 
$
(7,183,678
 
$
  12,019,256
 
 
$
  10,679,332
 
     
Compensation Actually Paid vs. Total Shareholder Return
Compensation Actually Paid vs. Total Stockholder Return
As shown in the chart below, the PEO and other NEOs’ CAP amounts are aligned with our TSR. Our higher TSR in 2020 and 2021 (both on an absolute basis and relative to the S&P 500 Health Care Index) directionally aligned with higher CAP for the PEO and NEOs, while weaker performance resulted in negative CAP in 2022 and lower CAP in 2023.
 
 
LOGO
 
(a)
Total stockholder return in the above chart, in the case of both the Company and our peer group as noted in footnote 3 of the above Pay versus Performance Table, reflects the cumulative return of $100 as if invested on December 31, 2019, calculated in accordance with Item 201(e) of Regulation
S-K.
     
Compensation Actually Paid vs. Net Income
Compensation Actually Paid vs. Net Income
Our strong Net Income growth in 2020 and 2021 directionally aligned with higher CAP for those years, while Growth was slower in 2022 and 2023, which aligned with lower compensation actually paid.
 
LOGO
     
Compensation Actually Paid vs. Company Selected Measure
Compensation Actually Paid vs. Company Selected Measure
Our strong Adjusted EBITDA growth in 2020 and 2021 directionally aligned with higher CAP for those years, while growth was slower in 2022 and 2023, which aligned with lower compensation actually paid.
 
LOGO
     
Total Shareholder Return Vs Peer Group
Compensation Actually Paid vs. Total Stockholder Return
As shown in the chart below, the PEO and other NEOs’ CAP amounts are aligned with our TSR. Our higher TSR in 2020 and 2021 (both on an absolute basis and relative to the S&P 500 Health Care Index) directionally aligned with higher CAP for the PEO and NEOs, while weaker performance resulted in negative CAP in 2022 and lower CAP in 2023.
 
 
LOGO
 
(a)
Total stockholder return in the above chart, in the case of both the Company and our peer group as noted in footnote 3 of the above Pay versus Performance Table, reflects the cumulative return of $100 as if invested on December 31, 2019, calculated in accordance with Item 201(e) of Regulation
S-K.
     
Tabular List, Table
Tabular List of Most Important Financial Performance Measures
The unranked list below represents, in Avantor’s view, Avantor’s most important financial measures used to link compensation to performance:
 
LOGO
 
Company Performance Metrics
(1)
Adjusted EBITDA
Adjusted EPS
Net Working Capital as a Percentage of Sales
Relative TSR
Revenue
 
(1)
For further information regarding these company performance metrics and their function in the Company’s executive compensation program, please refer to the “Compensation Discussion and Analysis” section of this Proxy Statement. See Appendix A for information about these non-GAAP financial measures.
     
Total Shareholder Return Amount $ 125.79 116.2 232.18 155.1
Peer Group Total Shareholder Return Amount 143.18 140.29 143.09 113.45
Net Income (Loss) $ 321,100,000 $ 686,500,000 $ 572,600,000 $ 116,600,000
Company Selected Measure Amount 1,309,100,000 1,570,700,000 1,458,600,000 1,141,600,000
PEO Name Michael Stubblefield      
Measure:: 1        
Pay vs Performance Disclosure        
Name Adjusted EBITDA      
Non-GAAP Measure Description Adjusted EBITDA is the company selected measure and as used in this Proxy Statement is a
non-GAAP
financial measure. See “Appendix A –
Non-GAAP
Financial Measurements” for further discussion on this measure, including a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.
     
Measure:: 2        
Pay vs Performance Disclosure        
Name Adjusted EPS      
Measure:: 3        
Pay vs Performance Disclosure        
Name Net Working Capital as a Percentage of Sales      
Measure:: 4        
Pay vs Performance Disclosure        
Name Relative TSR      
Measure:: 5        
Pay vs Performance Disclosure        
Name Revenue      
PEO | Change in the actuarial present value of pension benefits [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ (7,895) $ 0 $ (5,342) $ (6,272)
PEO | Service cost of pension benefits [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 2,684 3,421 3,388 2,875
PEO | Year end Fair Value Of Awards Granted In The Current Fiscal Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (10,966,272) (9,684,956) (8,633,149) (7,313,957)
PEO | Fair value of equity compensation granted in current year value at year end [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 7,305,449 3,260,458 18,576,571 16,957,180
PEO | Dividends Accrued On Unvested Shares Share Units [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 0 0 0 0
PEO | Change in fair value from end of prior fiscal year to end of current fiscal year for awards made in prior fiscal years that were unvested at end of current fiscal year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (921,458) (28,816,798) 17,291,985 10,226,909
PEO | Change in fair value from end of prior fiscal year to vesting date for awards made in prior fiscal years that vested during current fiscal year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 1,174,497 (4,226,057) 5,214,944 2,873,373
PEO | Fair value of forfeited awards determined at end of prior year for awards made in prior fiscal years that were forfeited during current fiscal year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 0 0 0 0
Non-PEO NEO | Change in the actuarial present value of pension benefits [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (5,613) (1,726) (2,787) (4,428)
Non-PEO NEO | Service cost of pension benefits [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 1,806 2,495 2,491 982
Non-PEO NEO | Year end Fair Value Of Awards Granted In The Current Fiscal Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (3,117,887) (1,963,157) (1,861,530) (3,340,903)
Non-PEO NEO | Fair value of equity compensation granted in current year value at year end [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 2,221,730 660,865 4,005,523 6,814,068
Non-PEO NEO | Dividends Accrued On Unvested Shares Share Units [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 0 0 0 0
Non-PEO NEO | Change in fair value from end of prior fiscal year to end of current fiscal year for awards made in prior fiscal years that were unvested at end of current fiscal year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (81,272) (6,381,045) 5,398,965 2,303,223
Non-PEO NEO | Change in fair value from end of prior fiscal year to vesting date for awards made in prior fiscal years that vested during current fiscal year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 138,465 (2,054,191) 938,108 318,100
Non-PEO NEO | Fair value of forfeited awards determined at end of prior year for awards made in prior fiscal years that were forfeited during current fiscal year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ (347,467) $ 0 $ 0 $ 0