Adient plc
For the period ended Dec 31, 2023. Filed Jan 23, 2024.
View on SEC.govAbout this filing
What shareholders are asked to vote on at a company's meeting. It is where to find what directors and top executives are paid, and who owns the most shares.
Dec 31, 2023 · Filed Jan 23, 2024
ADNT$16.30-4.5%Stored close · as of Nov 6, 2026
Contents
Elements of our Total Rewards Program
The chart below highlights the key elements and structure of our total rewards program and how each is linked to executive compensation program objectives:
| Element | Link to Program Objectives | Type ofCompensation | Key Features |
|---|---|---|---|
| Base Salary | The Human Capital and Compensation Committee considers base salaries paid by companies in the Compensation Peer Group. | Cash | Fixed pay that provides a stable source of income and is a standard compensation element in executive compensation packages. |
| Annual Incentive | A cash-based award that encourages executives to focus on the business and financial objectives for each fiscal year. The target incentive opportunity is set as a percentage of base salary. | Cash | Variable pay component designed to incentivize and recognize performance in areas of short-term strategic importance. Payout is based on Adjusted EBITDA (40% weight), Free Cash Flow (40% weight) and strategic objectives (20% weight). |
| Long-Term Incentives• RSUs• PSUs | Ensures that executive pay is directly linked to the achievement of long-term financial objectives, builds shareholder value and supports talent retention. | Long-Term Equity | Equity-based pay to incent and recognize performance in areas of long-term strategic importance, promote retention and stability and align executives’ interest with shareholders. RSUs have a three-year ratable vesting schedule that promotes retention, and the increase or decrease in their value mirrors what shareholders experience, further aligning executives’ interests with those of our shareholders. PSUs align executive compensation with the creation of shareholder value. PSUs have a three-year cliff vesting schedule with the number of shares earned dependent upon financial performance relative to pre-determined goals. The performance measures used for this long-term incentive component are Return on Sales (25%), Cumulative Free Cash Flow (25%) and relative TSR (50%) based on rank within a peer group (TSR results are capped 100% if our 3-year TSR is negative). |
| Health and Welfare andRetirement Benefits | A critical element of a total rewards program and thus, helps attract, maintain and retain executive talent. | Benefit | These benefits are broadly applicable to all U.S. executives; retirement benefits are provided through three plans:• 401(k) Plan• Retirement Restoration Plan• Executive Deferred Compensation Plan |
| Severance and Changeof Control Agreements | An industry-prevalent and competitive component of a total rewards program. Also ensures executives remain focused on the business. | Benefit | These agreements protect Adient and the executives from risks by providing:• Economic stability• Payments and benefits in the event of a change of control The agreements do not provide excise tax gross-ups in the event of a change of control, and equity awards are subject to double-trigger vesting upon a change of control. |
| Perquisites | Limited use of perquisites. | Benefit | The only perquisite we currently provide to our U.S. based NEOs is reimbursement for the cost of an annual executive physical. |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.