CELANESE CORPORATION | ||
(Name of Registrant as Specified In Its Charter) | ||
(Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
þ
|
No fee required | ||||
¨
|
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11 | ||||
(1) Title of each class of securities to which transaction applies: | |||||
(2) Aggregate number of securities to which transaction applies: | |||||
(3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
|
|||||
(4) Proposed maximum aggregate value of transaction:
|
|||||
(5) Total fee paid:
|
¨
|
Fee paid previously with preliminary materials. | ||||
¨
|
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. | ||||
(1) Amount Previously Paid: | |||||
(2) Form, Schedule or Registration Statement No.: | |||||
(3) Filing Party: | |||||
(4) Date Filed: |
|
Table of Contents |
Table of Contents | |||||
LETTER TO STOCKHOLDERS FROM OUR CEO | |||||
LETTER TO STOCKHOLDERS FROM OUR LEAD INDEPENDENT DIRECTOR | |||||
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS | |||||
VOTING INFORMATION | |||||
PROXY STATEMENT SUMMARY | |||||
Director Nominees | |||||
Director Nominee Highlights | |||||
Environmental, Social and Governance Update | |||||
Human Capital Highlights | |||||
Corporate Governance Highlights | |||||
Performance Highlights and Compensation Decisions | |||||
Additional Information | |||||
PROXY STATEMENT | |||||
Information About Solicitation and Voting | |||||
GOVERNANCE | |||||
ITEM 1: ELECTION OF DIRECTORS
|
|||||
Director Nominees | |||||
Board and Committee Governance | |||||
Board Oversight | |||||
Stockholder Engagement | |||||
Additional Governance Matters | |||||
Director Compensation |
Director Independence and Related Person Transactions | |||||
STOCK OWNERSHIP INFORMATION | |||||
Principal Stockholders and Beneficial Owners
|
|||||
Delinquent Section 16(a) Reports
|
|||||
AUDIT MATTERS | |||||
Audit Committee Report
|
|||||
ITEM 2: RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
|||||
EXECUTIVE COMPENSATION* | |||||
ITEM 3: ADVISORY APPROVAL OF EXECUTIVE COMPENSATION
|
|||||
Compensation Discussion and Analysis
|
|||||
Compensation Risk Assessment
|
|||||
Compensation and Management Development Committee Report
|
|||||
Compensation Tables
|
|||||
CEO Pay Ratio
|
|||||
QUESTIONS AND ANSWERS | |||||
Annual Meeting Information
|
|||||
Proxy Materials and Voting Information
|
|||||
Company Documents, Communications and Stockholder Proposals
|
|||||
EXHIBIT A |
A-1
|
||||
Non-U.S. GAAP Financial Measures |
A-1
|
||||
*Detailed table of contents for compensation topics on page 44.
|
Cautionary Note Regarding Forward-Looking Statements; Available Information
This Proxy Statement includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this Proxy Statement. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially. We describe risks and uncertainties that could cause actual results and events to differ materially in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Forms 10-K and 10-Q. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.
References to our website in this Proxy Statement are provided as a convenience, and the information on our website is not, and shall not be deemed to be a part of this Proxy Statement or incorporated into any other filings we make with the SEC. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including Celanese Corporation, that electronically file with the SEC at http://www.sec.gov.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / i
|
|
A letter from Lori J. Ryerkerk, our CEO |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 1
|
|
A letter from Edward G. Galante, our Lead Director |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 2
|
|
Notice of Annual Meeting of Stockholders |
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
|
Date and Time:
|
|
April 15, 2021, 1:00 p.m. (Central Daylight Saving Time)
|
||||||
Virtual Meeting Website:
|
|
Online at www.virtualshareholdermeeting.com/CE2021
|
||||||
Items of Business:
|
|
● To elect Jean S. Blackwell, William M. Brown, Edward G. Galante, Kathryn M. Hill, Dr. Jay V. Ihlenfeld, David F. Hoffmeister, Deborah J. Kissire, Kim K.W. Rucker, Lori J. Ryerkerk and John K. Wulff to serve until the 2022 Annual Meeting of Stockholders, or until their successors are elected and qualified or their earlier resignation;
|
||||||
● To ratify the selection of KPMG LLP as our independent registered public accounting firm for 2021;
|
||||||||
|
|
● Advisory vote to approve executive compensation; and
|
||||||
|
|
● To transact such other business as may properly be brought before the meeting in accordance with the provisions of the Company’s Sixth Amended and Restated By-laws (the “by-laws”).
|
||||||
Record Date:
|
|
You are entitled to attend the 2021 Annual Meeting and to vote if you were a stockholder as of the close of business on February 18, 2021.
|
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS
FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON APRIL 15, 2021
|
||||||||||||||
The Celanese Corporation 2021 Notice of Annual Meeting and Proxy Statement, 2020 Annual Report
and other proxy materials are available at www.proxyvote.com.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 3
|
|
Voting Information |
VOTE IN ADVANCE OF THE MEETING* | VOTE AT THE VIRTUAL MEETING | ||||||||||||||||||||||||||||
via the internet | by phone | by mail | by QR code | ||||||||||||||||||||||||||
: | ) | * |
|
m | |||||||||||||||||||||||||
Visit proxyvote.com to submit a proxy via computer or your mobile device | Call 1-800-690-6903 or the telephone number on your proxy card or voting instruction form | Sign, date and return your proxy card or voting instruction form |
Scan this QR code to vote with your mobile device (may require free app)
|
||||||||||||||||||||||||||
Electronic Stockholder Document Delivery
|
||||||||||||||
Instead of receiving future copies of annual meeting proxy materials by mail, stockholders of record and most beneficial owners can elect to receive an e-mail that will provide electronic links to these documents. Opting to receive your proxy materials online will save us the cost of producing and mailing documents and will also give you an electronic link to the proxy voting site.
|
||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 4
|
|
Proxy Summary |
PROXY STATEMENT SUMMARY
|
We provide below highlights of certain information in this Proxy Statement. As this is only a summary, please refer to the complete Proxy Statement and 2020 Annual Report before you vote.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proxy Item No. 1
Election of 10 Director Nominees
|
ü The Board recommends a vote FOR all Director Nominees
Our Board and the Nominating and Corporate Governance Committee believe that the ten director nominees possess the necessary qualifications to provide effective oversight of the business and quality advice and counsel to the Company’s management.
à See “Item 1: Election of Directors”and “Director Nominees” beginning on page 13 of this Proxy Statement for additional information.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Director Nominees
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table provides summary information about each director nominee. Each nominee is to be elected by a majority of the votes cast.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Qualifications
|
Age
|
Director
Since
|
Primary Occupation /
Other Public Company Boards
|
Independent
|
Committee
Memberships(1)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jean S. Blackwell | 66 | 2014 | Former EVP / CFO – Cummins Inc. |
ü
|
CMD; NCG£
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
&Q5Gq@6L
|
Ingevity Corp.; Johnson Controls Int’l plc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
William M. Brown | 58 | 2016 | Chairman / CEO – L3Harris Technologies, Inc. |
ü
|
AC; EHS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
&Q:5Gq@6L
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Edward G. Galante | 70 | 2013 | Former SVP – Exxon Mobil Corporation |
ü
|
CMD; NCGt
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
&Q.:Gq@6L
|
Linde plc; Clean Harbors Inc.; Marathon Petroleum Corp. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kathryn M. Hill | 64 | 2015 | Former SVP Dev. Strategy – Cisco Systems Inc. |
ü
|
CMD£; EHS
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
&Q:5@6
|
Moody’s Corporation; NetApp Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
David F. Hoffmeister | 66 | 2006 | Former SVP / CFO – Life Technologies Corp. |
ü
|
AC; NCG | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
&Q.:Gq6L
|
Glaukos Corporation; ICU Medical Inc.; StepStone Group Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dr. Jay V. Ihlenfeld | 69 | 2012 | Former SVP, Asia Pacific – 3M Company |
ü
|
CMD; EHS£
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q.:5G@6
|
Ashland Global Holdings, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deborah J. Kissire | 63 | 2020 | Former Vice Chair - Ernst & Young LLP | ü | AC; EHS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
&Q:5Gq6L
|
Omnicom Group; Axalta Coatings System Ltd.; Cable One, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kim K.W. Rucker | 54 | 2018 | Former EVP and GC – Andeavor |
ü
|
AC; NCG | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
&Q:5Gq6L
|
Lennox International Inc.; Marathon Petroleum Corp. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lori J. Ryerkerk | 58 | 2019 | Chief Executive Officer – Celanese Corporation | – | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
&Q.:G@q6L
|
Eaton Corporation plc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
John K. Wulff | 72 | 2006 | Former Chairman – Hercules Inc. |
ü
|
AC£; EHS
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
&.:Gq6L
|
Atlas Air Worldwide Holdings, Inc.; Hexion Holdings Corp. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Qualifications: | Board Committees: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
& | Leadership | G | Govt/regulatory | AC | Audit Committee | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q | Global experience | q | Financial & transactions | CMD | Compensation and Management Development Committee | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
. | Chemical industry | @ | Operational | EHS | Environmental, Health, Safety, Quality and Public Policy Committee | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
: | Innovation-focused | 6 | Strategic | NCG | Nominating and Corporate Governance Committee | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Customer-focused | L | Risk oversight | £ | Committee Chair | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
t | Lead Independent Director | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) See page 24 for Committee membership changes effective April 2021.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 5
|
|
Proxy Summary |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 6
|
|
Proxy Summary |
Environmental, Social and Governance Update | ||||||||||||||
Accelerating safe and sustainable solutions through chemistry. | ||||||||||||||
We believe we have a responsibility to meaningfully improve the world through the power of chemistry.
|
||||||||||||||
This responsibility to do more is instilled within us at Celanese, and we believe that when chemistry connects with sustainability, the possibilities are endless. | ||||||||||||||
Operating with Integrity through Three Pillars of Governance | ||||||||||||||
Creating a culture of compliance through Board, senior leadership, and management oversight provides confidence to our employees, customers, and communities where we operate. Our ESG oversight focuses on three goals of preserving the environment, investing in our people and communities, and advancing safe and sustainable customer solutions. |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 7
|
|
Proxy Summary |
Preserving the Environment - applying a science-driven approach designed to deliver sustainable operations through focus and analysis.
|
|||||||||||||||||||||||||||||
Because our business operations are energy and fossil fuel intensive, we have invested in projects to (1) increase energy efficiency and reliability, (2) recover and reuse waste heat and (3) increase use of renewable energy and sustainable raw materials
|
Celanese Adopted a Climate Policy in December 2020 | ||||||||||||||||||||||||||||
We recognize that Climate Change is one of the most challenging and significant issues facing the world today.
|
|||||||||||||||||||||||||||||
Progress (2013-2019)(1)
|
ü
|
Committed to a robust climate program
|
|||||||||||||||||||||||||||
~34% reduction in solid waste intensity | ~37% reduction in volatile organic compound (VOC) intensity | ~30% reduction in greenhouse gas (GHG) intensity |
ü
|
Will publicly report metrics against a baseline
|
|||||||||||||||||||||||||
ü |
Implementing a new software system to capture SASB-aligned environmental metrics for 2020 onwards
|
||||||||||||||||||||||||||||
Our Waste, Water and Energy Intensity Goals by 2030(2)
|
|||||||||||||||||||||||||||||
15% reduction in “Total Waste Disposed Intensity”
|
10% reduction in “Water Consumption Intensity”
|
10% reduction in “Total Net Energy Intensity” | ü |
Support multilateral approaches to addressing climate risks, such as the Paris Agreement
|
|||||||||||||||||||||||||
(1) Numbers are estimates and may be based on assumptions.
(2) Measured against a 2021 baseline.
|
https://www.celanese.com/en/Sustainability/Environment |
Celanese Plans to Launch a Sustainability Report and Website in Mid-2021 |
Investing in People and Communities
|
|||||||||||||||||||
We are focused on empowering our people and communities to thrive in a changing world through engagement, inclusion and protection. | ||||||||||||||||||||
ü | Report to be aligned to Sustainability Accounting Standards Board (SASB) and UN Sustainable Development Goals (UNSDGs) | v |
In 2019 and 2020, the Celanese Foundation donated approximately $4.6 million, supporting over 1,800 charities globally.
|
|||||||||||||||||
v |
In response to the challenges of COVID-19, we mobilized to contribute more than 800,000 protective face masks to our manufacturing sites, offices, local hospitals, emergency responders, and nursing homes.
|
|||||||||||||||||||
Advancing Safe and Innovative Customer Solutions | ||||||||||||||
We are focused on developing a growing range of products that address one or more of these critical needs: | ||||||||||||||
|
||||||||||||||
To learn more about Sustainability at Celanese: https://www.celanese.com/sustainability/ |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 8
|
|
Proxy Summary |
Human Capital Highlights | ||||||||||||||||||||
For more information, please see “ Human Capital Management” beginning on page 51.
|
||||||||||||||||||||
Our human capital efforts center around the following elements.
|
||||||||||||||||||||
|
Diversity, Equity and Inclusion
|
|||||||||||||||||||
A diverse, equitable and inclusive environment is a foundational factor to our success – key to driving innovation, creativity and growth. We support these efforts through our Global DE&I Council, Employee Resource Groups and purposeful recruiting outreach to trade associations and engineering groups. | ||||||||||||||||||||
Representation of Women | Representation of People of Color | |||||||||||||||||||
s |
50% of our Board of Directors
|
s |
10% of our Board of Directors
|
|||||||||||||||||
s |
28% of our management roles(1)
|
s |
29% of our U.S. management roles(1)
|
|||||||||||||||||
s |
24% of our employees(1)
|
s |
30% of our U.S. employees(1)
|
|||||||||||||||||
(1) Reflects year-end 2020 estimates | ||||||||||||||||||||
Health, Safety and Environmental | ||||||||||||||||||||
Our health, safety and environmental stewardship values are critical to our success in attracting and retaining the best industry talent across the globe. Through deliberate actions, we have improved our employee safety, process safety and environmental incident metrics in recent years.
|
||||||||||||||||||||
Employee Health and Wellness | ||||||||||||||||||||
Around the world, we offer other benefits that are competitive in each of the countries where we operate.
|
||||||||||||||||||||
Talent Development | ||||||||||||||||||||
We are focused on attracting and developing exceptional talent while supporting employees’ career and personal goals. | ||||||||||||||||||||
Caring for Employees During COVID-19 | ||||||||||||||||||||
Through a combination of additional paid time off, scheduling actions and expansion of dedicated mental and physical wellness benefits, we sought to keep our employees whole financially and support their wellness during these difficult times. See “Helping our Employees Navigate the Challenges of COVID-19” on page 53 for more information.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 9
|
|
Proxy Summary |
Corporate Governance Highlights
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our Corporate Governance Policies Reflect Best Practices | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We are committed to good corporate governance, which promotes the long-term interests of stockholders, strengthens Board and management accountability and helps to build public trust in the Company. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Independent
Oversight
|
● 9 of 10 director nominees are independent (all except for the CEO)
● Lead Independent Director with clearly defined and robust responsibilities
● Regular executive sessions of independent directors at Board meetings (chaired by the Lead Independent Director) and Committee meetings (chaired by independent Committee chairs)
● 100% independent Board Committees
● Active Board oversight of the Company’s strategy and risk management
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Board
Refreshment
|
● Comprehensive, ongoing Board succession planning process
● Focus on diversity (three women directors hold Board leadership roles; 50% of director nominees are women and 10% are racially diverse)
● Regular Board refreshment and mix of tenure of directors (8 new directors since the beginning of 2012, 5 since the beginning of 2015 and 3 since the beginning of 2018)
● Annual Board and Committee assessments including performance evaluation of individual directors
● Retirement age of 75
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder
Rights
|
● Annual election of all directors
● Majority-vote and director resignation policy for directors in uncontested elections
● Proxy access right for stockholders (3% ownership threshold continuously for 3 years / 2 director nominees or 20% of the Board / 20 stockholder aggregation limit)
● Directors may be removed with or without cause
● One class of outstanding shares with each share entitled to one vote
● No poison pill
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Good Governance
Practices
|
● Prohibition on hedging or pledging Company stock
● Comprehensive clawback policy
● Rigorous director and executive stock ownership requirements
● Active stockholder engagement program
● Global Code of Conduct applicable to directors and all employees with annual compliance certification
● Political activities disclosures on our website
● Longstanding commitment to corporate responsibility
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proxy Item No. 2
Ratify the appointment of KPMG LLP as our independent registered public accounting firm for fiscal year ending December 31, 2021
|
ü The Board recommends a vote FOR this proposal
The Audit Committee and the Board believe that the continued retention of KPMG LLP to serve as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021 is in the best interests of the Company and its stockholders. As a matter of good corporate governance, stockholders are being asked to ratify the Audit Committee’s selection of the independent registered public accounting firm for 2021.
à See “Audit Matters” beginning on page 41 of this Proxy Statement for additional information.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 10
|
|
Proxy Summary |
Proxy Item No. 3
Advisory Approval of Executive Compensation
|
ü The Board recommends a vote FOR this proposal
Our Board recommends that stockholders vote “FOR” the advisory approval of the compensation of our named executive officers (NEOs” or “named executive officers”) for the 2020 performance year.
à See “Item 3: Advisory Approval of Executive Compensation” and “Compensation Discussion and Analysis” beginning on page 46 of this Proxy Statement.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Highlights and Compensation Decisions
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Performance (further details can be found beginning on page 49)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü | We responded proactively to the COVID-19 pandemic, protecting our cash position, optimizing our operations and enacting productivity improvements, as well as surpassed analyst earnings consensus for all four quarters in 2020. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
GAAP diluted earnings per share were $16.85 and net earnings were $1,997 million, with increases over 2019 being primarily due to the gain on the sale of our joint venture interest in Polyplastics Co. Ltd. Our Adjusted EPS(1) for 2020 was $7.64, down 19.8% from 2019 primarily due to the impact of the COVID-19 pandemic on product demand. However, our cumulative Adjusted EPS over the 2018-2020 period was $28.17, exceeding our previous three-year record $28.04 in Adjusted EPS from 2017-2019. Our Adjusted EBIT(1) was lower than the prior year by 23.4%, primarily reflecting the significant weakening of demand in the end markets served by our businesses.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü |
Despite the challenges of the pandemic, we achieved operating cash flow of $1,343 million and free cash flow(1) of $950 million. We ended the year with $955 million in cash and cash equivalents and the full $1.25 billion of borrowing availability under our senior unsecured revolving credit facility.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü | We executed on strategic initiatives to maintain liquidity, including monetizing our passive stake in Polyplastics for approximately $1.6 billion in cash proceeds, and completed initiatives for sustainable cost savings. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Responding to the COVID-19 Pandemic (further details can be found beginning on page 49)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
During the unprecedented COVID-19 pandemic, we quickly adapted to protect our employees and adjust our manufacturing operations to meet new demands and challenges whilst maintaining our priorities of safety, product quality and customer service and remaining focused on our long-term strategy. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü | We protected our employees by temporarily closing the majority of corporate and sales offices, implementing robust cleaning and social-distancing procedures at our manufacturing and other sites, providing training and personal protective equipment to employees and developing infectious disease response and control procedures. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü | During the difficult times posed by the pandemic, we remained focused on delivering for our customers and creating value for our stockholders. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü |
We also focused on minimizing financial impacts to our employees, keeping them whole in pay and benefits and supporting their ability to manage stressors during these difficult times. More details can be found on page 53.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Decisions Focus on Pay for Performance (further details can be found beginning on page 54)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
Under the original annual incentive plan formula adopted in February 2020 before the broader onset of the pandemic, our below-threshold Adjusted EBIT and working capital in 2020, partially offset by stewardship results that were better than target, produced a below-target company performance factor of 36%. Following a rigorous review of Company performance against key strategic priorities and objectives, described in more detail beginning on page 62, the CMDC awarded a higher, but still below-target, company performance factor in recognition of strong performance across multiple metrics important to the sustained success of the Company despite the impact of the pandemic. This action positively impacted approximately 1,000 employees in the organization who participate in the annual incentive plan. The CMDC believes this decision reflected the alignment of pay with our short-term performance in light of success in controllable actions to achieve positive business results and mitigate and offset the negative impact of the pandemic.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
With respect to our LTI program results, our 3-year Adjusted EPS and Return on Capital Employed (ROCE) produced a superior payout for our 2018-2020 performance restricted stock unit (PRSU) award. The 2018 PRSUs were paid out in 2021 at 183% of target, reflecting our record best three-year cumulative Adjusted EPS performance industry leading ROCE and strong total shareholder return over the PRSU measurement period.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Information
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Please see “Questions and Answers” beginning on page 94 for important information about the proxy materials, voting, the Annual Meeting, Company documents, communications and the deadlines to submit stockholder proposals for the 2021 Annual Meeting.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Adjusted earnings per share, adjusted EBIT and free cash flow are non-U.S. GAAP financial measures. See “Exhibit A” for information concerning these measures including a definition and a reconciliation to the most comparable U.S. GAAP financial measure.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 11
|
|
Proxy Statement |
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS
FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON APRIL 15, 2021
|
||||||||||||||
The Celanese Corporation 2021 Notice of Annual Meeting and Proxy Statement, 2020 Annual Report
and other proxy materials are available at www.proxyvote.com.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 12
|
|
Governance |
Board Composition and Refreshment
|
BOARD REFRESHMENT
|
|||||||||||||||||||
Over the last nine years: | ||||||||||||||||||||
Ensuring the Board is composed of directors who bring diverse viewpoints and perspectives, exhibit a variety of skills, professional experience and backgrounds, and effectively represent the long-term interests of our stockholders, is a principal priority of the Board and the N&CG Committee. The Board and the Committee also understand the importance of Board refreshment, and strive to maintain an appropriate balance of tenure, turnover, diversity and skills on the Board. The Board believes that new perspectives and new ideas are critical to a forward-looking and strategic board, as is the ability to benefit from the valuable experience and familiarity with the complexities of our business that longer-serving directors bring.
|
||||||||||||||||||||
●
|
Eight new directors elected
|
|||||||||||||||||||
●
|
Rotation of all Board committee chairs
|
|||||||||||||||||||
●
|
Two New Lead Independent Directors
|
|||||||||||||||||||
●
|
Expanded qualifications and diversity represented on the Board
|
|||||||||||||||||||
●
|
Transitioned to annual election of directors
|
|||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 13
|
|
Governance |
Qualifications, Attributes, Skills
and Experience |
Characteristics | No. of Directors | ||||||||||||||||||
&
|
Relevant senior leadership/C-Suite experience
|
Senior leadership experience allows directors to better understand day-to-day and strategic aspects of a business
|
9 | |||||||||||||||||
Q
|
Global business experience
|
Our business is global and multicultural, with products manufactured in the Americas, Europe and Asia and operations in 18 countries around the world
|
9 | |||||||||||||||||
.
|
Extensive knowledge of the Company’s business and/or chemical industry
|
A deep understanding of the Company’s business and/or the chemical industry allows a director to better guide the Company
|
5 | |||||||||||||||||
:
|
Experience in innovation-focused businesses
|
Focus on innovation to drive performance
|
9 | |||||||||||||||||
5 |
Experience in customer-driven businesses
|
High level of customer interaction
|
6 | |||||||||||||||||
G
|
Government/regulatory/geopolitical exposure
|
Regulatory obligations and political challenges in various jurisdictions
|
9 | |||||||||||||||||
q
|
Financial & transactions experience
|
High level of familiarity with financial matters and complex financial transactions, including in foreign countries / currencies
|
8 | |||||||||||||||||
@
|
Operational expertise
|
Experience managing manufacture of many types and kinds of products consistent with high level specifications and in large quantities
|
6 | |||||||||||||||||
6 |
Strategy development experience
|
Experience with strategy development, allowing the Board to better evaluate management’s plan and guide the Company
|
10 | |||||||||||||||||
L
|
Risk oversight/management expertise
|
Assessment of risk and the policies/procedures to manage risk
|
8 |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 14
|
|
Governance |
Jean S. Blackwell | |||||||||||||||||||||||
|
Ms. Blackwell served as Chief Executive Officer of Cummins Foundation and Executive Vice President, Corporate Responsibility, of Cummins Inc., a global power leader that designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products, from March 2008 until her retirement in March 2013. She previously served as Executive Vice President and Chief Financial Officer from 2003 to 2008, Vice President, Cummins Business Services from 2001 to 2003, Vice President, Human Resources from 1998 to 2001, and Vice President and General Counsel from 1997 to 1998 of Cummins Inc. Prior thereto, Ms. Blackwell was a partner at the Indianapolis law firm of Bose McKinney & Evans LLP from 1984 to 1991, where she practiced in the area of financial and real estate transactions. She has also served in state government, including as Executive Director of the Indiana State Lottery Commission and State of Indiana Budget Director. Ms. Blackwell has served as a member of the board of directors of Ingevity Corporation, a leading global manufacturer of specialty chemicals and high performance carbon materials, since May 2016, including as the chair of the audit committee and as a member of its compensation committee and the executive committee. Ms. Blackwell has also served as a member of the board of directors of Johnson Controls International plc, a leading diversified technology company, since May 2018, including as a member of its compensation committee. She previously served as a member of the board of directors from April 2004 to November 2009, and as chair of the audit committee, of Phoenix Companies Inc., a life insurance company. Ms. Blackwell also served as a member of the board of directors of Essendant Inc. (formerly United Stationers Inc.), a leading national wholesale distributor of business products, from 2007-2018, including as a member of the governance committee and the audit committee, and as the chair of the human resource committee and the governance committee.
|
||||||||||||||||||||||
Director since: 2014
Age: 66
Current Board Committees:
Compensation
Nominating and Corporate Governance
Other Public Company Boards:
Ingevity Corporation
Johnson Controls International plc
Essendant Inc. (2007-2018)
Phoenix Companies Inc. (2004-2009)
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
& | Q | 5 | Substantial global leadership, operational, financial, transactional, strategic, customer-driven, and risk management experience gained as Executive Vice President/CFO and General Counsel of Cummins Inc., and service on other boards of directors. | ||||||||||||||||||||
q | @ | 6 | |||||||||||||||||||||
L | |||||||||||||||||||||||
G | Substantial governmental experience from having served in the Indiana State Government. | ||||||||||||||||||||||
William M. Brown | |||||||||||||||||||||||
|
Mr. Brown is Chairman of the Board and Chief Executive Officer of L3Harris Technologies, Inc., successor to Harris Corporation and a global aerospace and defense technology company. Mr. Brown joined Harris in November 2011 as President and Chief Executive Officer and was appointed Chairman in April 2014. Prior to joining Harris, Mr. Brown was Senior Vice President, Corporate Strategy and Development, of United Technologies Corporation (“UTC”). He also served five years as President of UTC’s Fire & Security Division. In total, Mr. Brown spent 14 years with UTC, holding U.S. and international roles at various divisions, including Carrier Corporation’s Asia Pacific Operations and the Carrier Transicold division. Before joining UTC in 1997, he worked for McKinsey & Company as a senior engagement manager. He began his career as a project engineer at Air Products and Chemicals, Inc. Mr. Brown serves on the board of directors of the Fire Department of NYC Foundation and the board of trustees of Florida Institute of Technology.
|
||||||||||||||||||||||
Director since: 2016
Age: 58
Current Board Committees:
Audit
Environmental, Health, Safety & Quality
Other Public Company Boards:
L3Harris Technologies, Inc.
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
& | : | 5 | Substantial leadership, financial, governmental/geopolitical, innovation, strategic and risk management experience gained in roles of Chairman and CEO of L3Harris Technologies, Inc. and Harris Corporation. | ||||||||||||||||||||
G | @ | 6 | |||||||||||||||||||||
L | q | ||||||||||||||||||||||
Q | q | Substantial transactional, global business, operational and strategic experience gained in various roles with United Technologies Corporation. | |||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 15
|
|
Governance |
Edward G. Galante | |||||||||||||||||||||||
|
Mr. Galante served as Senior Vice President and as a member of the management committee of Exxon Mobil Corporation, an international oil and gas company, from August 2001 until his retirement in 2006. Prior to that, he held various management positions of increasing responsibility during his more than 30 years with Exxon Mobil Corporation, including serving as Executive Vice President of ExxonMobil Chemical Company from 1999 to 2001. Mr. Galante currently serves as a director (since 2018), chairman of the compensation and management development committee and as a member of the audit committee of Linde plc. He formerly (since 2007) served on the Board of Praxair, Inc. prior to its merger with Linde AG. He also serves as a director (since 2010), and chairman of the environmental, health and safety committee and a member of the compensation committee and of the governance committee of Clean Harbors, Inc. He served as a director and member of the compensation committee and the environmental, health, safety and security committee of Andeavor Corporation (formerly Tesoro Corporation) until it was acquired by Marathon Petroleum Corporation. Mr. Galante currently serves as a director (since 2018) of Marathon Petroleum Corporation, and as a member of its compensation and management development committee (Chair) and its sustainability committee. From 2008 until November 2014, Mr. Galante served as a member of the board of directors of Foster Wheeler AG, which included service on the compensation and executive development committee (including as chair) and audit committee.
|
||||||||||||||||||||||
Director since: 2013
Age: 70
Current Board Committees:
Compensation
Nominating and Corporate Governance
Other Public Company Boards:
Linde plc
Clean Harbors Inc.
Marathon Petroleum Corporation
Andeavor Corporation (2016-2018)
Praxair, Inc. (2007-2018)
Foster Wheeler AG (2008-2014)
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
& | Q | . | Substantial leadership, chemical industry, oil industry, operational, global business, financial, innovation-focused, transactional, governmental/regulatory, strategy development and risk management experience gained with more than 30 years’ service with Exxon Mobil Corporation, including as Executive Vice President of ExxonMobil Chemical Company, and service on other boards of directors. | ||||||||||||||||||||
: | G | q | |||||||||||||||||||||
@ | 6 | L | |||||||||||||||||||||
Kathryn M. Hill | |||||||||||||||||||||||
|
Ms. Hill served in a number of positions at Cisco Systems, Inc. from 1997 to 2013, including, among others, as Executive Advisor from 2011 to 2013, Senior Vice President, Development Strategy and Operations from 2009 to 2011, Senior Vice President, Access Networking and Services Group from 2008 to 2009, and Senior Vice President, Ethernet Systems and Wireless Technology Group from 2005 to 2008. Cisco designs, manufactures and sells Internet Protocol (IP)-based networking and other products related to the communications and information technology industry and provides services associated with these products. Prior to joining Cisco, Ms. Hill had a number of engineering roles at various technology companies. Ms. Hill has served as a member of the board of directors of Moody’s Corporation, an essential component of the global capital markets providing credit ratings, research, tools and analysis, since May 2011, including currently serving as the chair of the compensation and human resources committee and as a member of the governance and nominating committee, the audit committee and the executive committee. She also currently serves as a member of the board of directors (since 2013), and as chair of the compensation committee and a member of the corporate governance and nominating committee of NetApp, Inc.
|
||||||||||||||||||||||
Director since: 2015
Age: 64
Current Board Committees:
Compensation
Environmental, Health, Safety & Quality
Other Public Company Boards:
Moody's Corporation
NetApp, Inc.
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
&
|
Q | : | Substantial innovation-focused, leadership, customer-focused, global business, operational and strategic experience gained in various roles with Cisco Systems, Inc. | ||||||||||||||||||||
5 | @ | 6 | |||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 16
|
|
Governance |
David F. Hoffmeister | |||||||||||||||||||||||
|
Mr. Hoffmeister served as the Senior Vice President and Chief Financial Officer of Life Technologies Corporation, a global life sciences company, prior to its acquisition by Fisher Scientific Inc. in February 2014. From October 2004 to November 2008, he served as Chief Financial Officer of Invitrogen Corporation, which merged with Applied Biosystems in November 2008 to form Life Technologies Corporation. Before joining Invitrogen, Mr. Hoffmeister spent 20 years with McKinsey & Company as a senior partner serving clients in the healthcare, private equity and chemical industries on issues of strategy and organization. From 1998 to 2003, Mr. Hoffmeister was the leader of McKinsey’s North American chemical practice. Mr. Hoffmeister serves as a director of Glaukos Corporation (since 2014) and is a member of the audit committee. He also serves as a director (since 2018) of ICU Medical Inc. where he is a member of its audit committee and compensation committee and StepStone Group Inc., a private markets investment firm (since 2020), where he is chair of the audit committee. Our Board has affirmatively determined that Mr. Hoffmeister’s simultaneous service on these other audit committees does not impair his ability to effectively serve on our Audit Committee.
|
||||||||||||||||||||||
Director since: 2006
Age: 66
Current Board Committees:
Audit
Nominating and Corporate Governance
Other Public Company Boards:
Glaukos Corporation
ICU Medical Inc. StepStone Group Inc.
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
. | q | 6 | Substantial chemical industry, finance and strategic experience as a large consulting firm partner. | ||||||||||||||||||||
& | Q | : | Substantial leadership, global business, financial, innovation-focused, transactional, governmental/regulatory, and risk management experience gained as Chief Financial Officer of Life Technologies Corporation. | ||||||||||||||||||||
G | q | L | |||||||||||||||||||||
Dr. Jay V. Ihlenfeld | |||||||||||||||||||||||
|
From 2006 until his retirement in 2012, Dr. Ihlenfeld served as the Senior Vice President, Asia Pacific, for 3M Company, a leader in technology and innovation. Dr. Ihlenfeld previously served as 3M Company’s Senior Vice President, Research and Development from 2002 to 2006. A 33-year veteran of 3M Company, Dr. Ihlenfeld has also held various leadership and technology positions, including Vice President of its Performance Materials business and Executive Vice President of its Sumitomo/3M business in Japan. Dr. Ihlenfeld serves as a director, lead independent director, and member of the audit committee and the environmental, health, safety and quality committee (since 2017) of Ashland Global Holdings, Inc.
|
||||||||||||||||||||||
Director since: 2012
Age: 69
Current Board Committees:
Compensation
Environmental, Health, Safety & Quality
Other Public Company Boards:
Ashland Global Holdings, Inc.
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
Q | . | : | Substantial chemical industry knowledge and operational, global business, innovation, customer-driven, geopolitical and strategy development experience gained in various roles over 33 years with 3M Company. | ||||||||||||||||||||
5 | G | @ | |||||||||||||||||||||
6 | |||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 17
|
|
Governance |
Deborah J. Kissire | |||||||||||||||||||||||
|
Ms. Kissire retired in 2015 as Vice Chair and Regional Managing Partner, member of the Americas Executive Board and member of the Global Practice Group of Ernst & Young LLP, an independent registered public accounting firm. During her more than 35-year career in the financial sector, Ms. Kissire served in various leadership positions at Ernst & Young, including Vice Chair and Regional Managing Partner for the East Central and Mid-Atlantic Regions and U.S. Vice Chair of Sales and Business Development. In addition to expertise in public company accounting and financial reporting, Ms. Kissire has significant executive-level experience in positions involved with strategic planning, governance, global branding, and gender inclusiveness. Ms. Kissire has served as a member of the board of directors of Cable One, Inc., a leading American cable and internet service provider, since 2015, including as chair of the audit committee. In 2016, she joined the board of directors of Omnicom Group Inc., a global marketing and corporate communications holding company, and currently serves on its audit and finance committees. Ms. Kissire also has served on the board of directors of Axalta Coating Systems Ltd., a manufacturer of liquid and powder coatings, since 2016, where she is currently a member of the compensation committee and the chair of the nominating and corporate governance committee. She is a member of the Advisory Board for Texas State University’s McCoy College of Business and has served on the boards of Goodwill Industries of Greater Washington and Junior Achievement USA.
|
||||||||||||||||||||||
Director since: 2020
Age: 63
Current Board Committees:
Audit
Environmental, Health, Safety & Quality
Other Public Company Boards:
Cable One, Inc.
Omnicom Group, Inc.
Axalta Coating Systems Ltd.
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
& | Q | : | Substantial experience with public company financial reporting, auditing, strategic planning, governance and risk management. Substantial board experience, including as an independent Audit Committee member, with other public companies. | ||||||||||||||||||||
5 | G | q | |||||||||||||||||||||
6 | L | ||||||||||||||||||||||
Kim K.W. Rucker | |||||||||||||||||||||||
|
Ms. Rucker served as Executive Vice President, General Counsel and Secretary of Andeavor, an integrated marketing, logistics and refining company, from 2016 until it was acquired by Marathon Petroleum Corporation in 2018. Prior to joining Andeavor, she served as Executive Vice President Corporate & Legal Affairs, General Counsel and Corporate Secretary of Kraft Foods Group, Inc., a food and beverage company, from 2012 to 2015. Beginning in 2008, Ms. Rucker served as Senior Vice President, General Counsel and Chief Compliance Officer of Avon Products, Inc., a global manufacturer of beauty and related products and assumed additional duties as Corporate Secretary in 2009. Ms. Rucker also served as Senior Vice President, Secretary and Chief Governance Officer of Energy Future Holdings Corp., an energy company, from 2004 to 2008. She was also Corporate Counsel for Kimberly-Clark Corporation and a Partner in the Corporate & Securities group at the law firm of Sidley Austin LLP. She holds a BBA in economics from the University of Iowa, a J.D. from the Harvard Law School and a Master in Public Policy degree from the John F. Kennedy School of Government at Harvard University. Ms. Rucker has served on the board of directors (since 2015) of Lennox International Inc., a global provider of climate control solutions, including currently serving as a member of the governance committee and the compensation and human resources committee. Ms. Rucker also serves on the board of directors of Marathon Petroleum Corporation (since 2018), and serves as a member of its sustainability committee.
|
||||||||||||||||||||||
Director since: 2018
Age: 54
Current Board Committees:
Audit
Nominating and Corporate Governance
Other Public Company Boards:
Lennox International Inc.
Marathon Petroleum Corp.
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
& | Q | 5 | Substantial experience with multiple industries including customer-driven, innovation and marketing companies, and substantial experience with complex mergers and acquisitions and regulatory matters, together with a broad knowledge of law, corporate governance, internal and external communications, government affairs and community involvement activities, gained as an executive with leadership roles at, and as a director of, multiple public companies. | ||||||||||||||||||||
:
|
q | 6 | |||||||||||||||||||||
L | G | ||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 18
|
|
Governance |
Lori J. Ryerkerk | |||||||||||||||||||||||
|
Ms. Ryerkerk was named our Chief Executive Officer and President and a member of our board of directors effective May 2019. In April 2020, she was named Chairman of the Board. Previously, Ms. Ryerkerk was the Executive Vice President of Global Manufacturing, the largest business in Shell Downstream Inc., where she led a team of 30,000 employees and contractors at refineries and chemical sites worldwide. Ms. Ryerkerk joined Shell in May 2010 as the Regional Vice President of Manufacturing in Europe and Africa, and was responsible for the operation of five Shell Manufacturing facilities and five joint ventures. In October 2013, she was named Executive Vice President of Global Manufacturing, Shell Downstream Inc. Before joining Shell, she was Senior Vice President, Refining, Supply and Terminals at Hess Corporation, where she was responsible for refineries, terminals and a distribution network, and supply and trading. Prior to that, Ms. Ryerkerk spent 24 years with ExxonMobil where she started her career as a process technologist at a refinery in Baton Rouge, Louisiana. Throughout her tenure at ExxonMobil, she took on a variety of operational and senior leadership roles in Refining and Chemicals Manufacturing, Power Generation, and various other groups including Supply, Economics and Planning, HSSE, and Public Affairs/Government Relations. Ms. Ryerkerk received a Chemical Engineering degree from Iowa State University. She serves on the Board of Eaton Corporation plc, a diversified power management company, and previously served on the board of directors of Axalta Coating Systems, a leading provider of liquid and powder coatings.
|
||||||||||||||||||||||
Director since: 2019
Age: 58
Current Board Committees:
None
Other Public Company Boards:
Eaton Corporation plc
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
& | . | : | Substantial leadership, chemical industry, operational, global business, innovation-focused, transactional, governmental/regulatory, strategy development and risk management experience gained with more than 30 years’ service in the chemical and refinery business, most recently as Executive Vice President, Global Manufacturing of Royal Dutch Shell, and previous service on other boards of directors. | ||||||||||||||||||||
G | Q | 6 | |||||||||||||||||||||
L | @ | q | |||||||||||||||||||||
John K. Wulff | |||||||||||||||||||||||
|
Mr. Wulff is the former Chairman of the board of directors of Hercules Incorporated, a specialty chemicals company, a position he held from July 2003 until Ashland Inc.’s acquisition of Hercules in November 2008. Prior to that time, he served as a member of the Financial Accounting Standards Board from July 2001 until June 2003. Mr. Wulff was previously Chief Financial Officer of Union Carbide Corporation, a chemical and polymers company, from 1996 to 2001. During his fourteen years at Union Carbide, he also served as Vice President and Principal Accounting Officer from January 1989 to December 1995 and Controller from July 1987 to January 1989. Mr. Wulff was also a partner of KPMG LLP and predecessor firms from 1977 to 1987. Mr. Wulff is currently a member of the audit and compensation committees, and a member of the board of directors (since 2016) of Atlas Air Worldwide Holdings, Inc., a leading global provider of outsourced aircraft and aviation operating services. In 2019, he was appointed an initial member of the board of directors of Hexion Holdings Corporation, the holding company of Hexion Inc., a specialty chemicals company and serves as chairman of the audit committee and a member of the compensation committee. He previously served as a member of the board of directors from 2004 to 2016, the chairman of the governance and compensation committee and as a member of the audit committee of Moody’s Corporation. Mr. Wulff served as a director of Chemtura Corporation from October 2009 until April 2017 when Chemtura was acquired by Lanxess A.G.
|
||||||||||||||||||||||
Director since: 2006
Age: 72
Current Board Committees:
Audit
Environmental, Health, Safety & Quality
Other Public Company Boards:
Atlas Air Worldwide Holdings, Inc. Hexion Holdings Corporation
Chemtura Corporation (2009-2017)
Moody’s Corporation (2004-2016)
|
Specific Qualifications, Attributes, Skills and Experience: | ||||||||||||||||||||||
& | . | : | Substantial leadership, chemical industry, financial, transactional, strategy development, risk management and innovation-focused business experience gained as Chairman of Hercules Incorporated, a specialty chemicals company, and as CFO of Union Carbide Corporation, a chemical and polymers company. | ||||||||||||||||||||
6 | L | q | |||||||||||||||||||||
G | q | Substantial finance and governmental and regulatory experience as a large accounting firm partner and member of the FASB. | |||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 19
|
|
Governance |
As a result of the removal by stockholders of our classified board structure, commencing with the 2019 Annual Meeting of Stockholders, all directors are elected annually.
To ensure that the Board remains composed of high-functioning members capable of keeping their commitments to board service, the N&CG Committee evaluates the qualifications and performance of each incumbent director before recommending the nomination of that director for an additional term. Our Board proactively adopted a by-law, which permits a stockholder, or a group of up to 20 stockholders, owning at least three percent of the Company’s outstanding Common Stock continuously for at least three years, to submit director nominees for up to the greater of two directors or 20 percent of the number of directors currently serving on the Board, subject to the terms and conditions specified in the by-laws. |
Proxy Access
|
|||||||||||||||||||
Holders of at least
|
||||||||||||||||||||
3% | ||||||||||||||||||||
held by up to 20 stockholders
|
||||||||||||||||||||
Holding the shares
|
||||||||||||||||||||
continuously for at least
|
||||||||||||||||||||
3 | ||||||||||||||||||||
years
|
||||||||||||||||||||
Can nominate two candidates or
|
||||||||||||||||||||
20% | ||||||||||||||||||||
of the Board, whichever is greater, for election at an annual stockholders’ meeting
|
||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 20
|
|
Governance |
|
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 21
|
|
Governance |
Board Leadership Structure |
The Board believes this is the optimal structure following the completion of our CEO transition, to provide consistent leadership and to maintain the focus required to achieve the Company’s strategic plan and long-term business goals. The Board will continue to reevaluate the structure annually.
|
||||||||||||||||||||||
●
|
Chairman and Chief Executive Officer: Lori Ryerkerk
|
||||||||||||||||||||||
●
|
Lead Independent Director: Edward Galante (through 2021 Annual Meeting); William Brown (following 2021 Annual Meeting)
|
||||||||||||||||||||||
●
|
All Board committees comprised exclusively of independent directors
|
||||||||||||||||||||||
●
|
Active engagement by all directors
|
||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 22
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 23
|
|
Governance |
Independent Director | Audit Committee | Compensation and Management Development Committee | Environmental, Health, Safety, Quality and Public Policy Committee | Nominating and Corporate Governance Committee | |||||||||||||
Jean S. Blackwell À
|
ü | l | £ | ||||||||||||||
William M. Brown À
|
ü | l | l | ||||||||||||||
Edward G. Galante t
|
ü | l | l | ||||||||||||||
Kathryn M. Hill | ü | £ | l | ||||||||||||||
David F. Hoffmeister À
|
ü | l | l | ||||||||||||||
Dr. Jay V. Ihlenfeld | ü | l | £ | ||||||||||||||
Deborah J. Kissire À
|
ü | l | l | ||||||||||||||
Kim K.W. Rucker | ü | l | l | ||||||||||||||
Lori J. Ryerkerk | |||||||||||||||||
John K. Wulff À
|
ü | £ | l | ||||||||||||||
Meetings in 2020
|
Board = 9
|
8 | 6 | 4 | 4 | ||||||||||||
£ Chairperson l Member À Financial Expert u Lead Independent Director
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 24
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 25
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 26
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 27
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 28
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 29
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 30
|
|
Governance |
Topics of Interest to Stockholders | Our Perspective, Response, Actions Taken and Actions Planned | ||||
● Diversity of our workforce, and our plans for disclosing diversity-related metrics for our Board, executive leadership and employees |
● We have made significant progress in recent years in improving the inclusiveness of our organization and the diversity represented by our employees, executive leadership and Board. For more information, see our discussion of Human Capital Management beginning on page 51.
|
||||
● Our approach towards, and plans for disclosing metrics related to, protecting the world’s climate |
● We recognize that climate change is one of the most challenging and significant issues facing the world today.
● In December 2020, our executive leadership adopted a Climate Policy.
● We are currently implementing new software to capture SASB-aligned environmental metrics for future disclosure, and are investing in projects to increase our energy efficiency and our use of renewable energy.
|
||||
● Product recycling and the circular economy |
● We are currently developing a growing range of products made from biological sources or renewable materials and materials that can be recycled or composted at the end of their life. See the discussion beginning on page 7.
|
||||
● Composition and skillset of our Board of Directors |
● We have a highly-qualified and diverse board that brings unique capabilities across functions, experiences, industries and background.
● Our mix of longer-serving and newer members of our Board effectively combines deep knowledge and experience in the complexities of our business with fresh perspectives and insights. |
||||
COVID-19 Related Topics:
● Impact on our business and strategy ● Impact on our workforce |
● We adapted to the difficult realities of COVID-19 with agility and we believe our results in 2020 demonstrate the resilience of our business-model. Our long-term strategy has not changed as a result of the pandemic. See the discussion of our 2020 results beginning on page 49.
● We have taken deliberate actions to minimize financial impacts to our employees, keep them whole in pay and benefits and support their wellbeing during COVID-19. See page 53.
|
||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 31
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 32
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 33
|
|
Governance |
Director Compensation Component | Amount | ||||
Annual Awards | |||||
Annual cash retainer (paid quarterly)
|
$105,000 | ||||
Annual time-based restricted stock units (“RSU”)(one-year vesting)
|
$150,000 | ||||
Incremental Awards for Board Leadership | |||||
Annual cash fee for chair: (i) nominating and corporate governance committee, and (ii) environmental, health, safety, quality and public policy committee
|
$15,000 | ||||
Annual cash fee for chair: (i) audit committee, and (ii) compensation and management development committee
|
$20,000 | ||||
Annual cash fee for lead independent director
|
$25,000 |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 34
|
|
Governance |
Name(1)
(a)
|
Fees
Earned or Paid in Cash
($)(2)
(b)
|
Stock
Awards
($)(3)
(c)
|
Option
Awards($)(4)
(d)
|
Non-Equity
Incentive Plan
Compensation
($)(5)
(e)
|
Change in
Pension Value and Nonqualified Deferred Compensation Earnings
($)(6)
(f)
|
All Other
Compensation
($)(7)
(g)
|
Total
($) (h) |
|||||||||||||||||||||||||||||||||||||
Jean S. Blackwell | 120,000 | 149,972 | — | — | — | — | 269,972 | |||||||||||||||||||||||||||||||||||||
William M. Brown | 105,000 | 149,972 | — | — | — | — | 254,972 | |||||||||||||||||||||||||||||||||||||
Edward G. Galante | 130,000 | 149,972 | — | — | — | — | 279,972 | |||||||||||||||||||||||||||||||||||||
Kathryn M. Hill | 125,000 | 149,972 | — | — | — | — | 274,972 | |||||||||||||||||||||||||||||||||||||
David F. Hoffmeister | 105,000 | 149,972 | — | — | — | — | 254,972 | |||||||||||||||||||||||||||||||||||||
Dr. Jay V. Ihlenfeld | 120,000 | 149,972 | — | — | — | — | 269,972 | |||||||||||||||||||||||||||||||||||||
Deborah J. Kissire | 26,250 | 87,449 | — | — | — | — | 113,699 | |||||||||||||||||||||||||||||||||||||
Kim K.W. Rucker | 105,000 | 149,972 | — | — | — | — | 254,972 | |||||||||||||||||||||||||||||||||||||
John K. Wulff | 125,000 | 149,972 | — | — | — | — | 274,972 | |||||||||||||||||||||||||||||||||||||
Mark C. Rohr(7)
|
303,385 | — | — | 102,334 | 439,951 | — | 845,670 |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 35
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 36
|
|
Governance |
Director | Organization |
Director’s Relationship
to Organization |
Type of Transaction, Relationship or Arrangement | Does the Amount Exceed the Greater of $1 million or 2% of either company’s Gross Revenues? | ||||||||||
Jean S. Blackwell | Ingevity Corporation and its subsidiaries and affiliates | Director | Business Relationship - Routine sales to Ingevity | No | ||||||||||
Johnson Controls International plc and its subsidiaries and affiliates | Director | Business Relationship - Routine sales to, and purchases from, Johnson Controls | No | |||||||||||
Edward G. Galante | Linde plc and subsidiaries and affiliates* | Director | Business Relationship - Routine sales to, and purchases from, Linde | No | ||||||||||
Clean Harbors and its subsidiaries and affiliates | Director | Business Relationship - Routine purchases from Clean Harbors | No | |||||||||||
Dr. Jay V. Ihlenfeld | Ashland Global Holdings Inc. and its subsidiaries and affiliates | Director | Business Relationship - Routine sales to, and purchases from, Ashland | No | ||||||||||
Deborah J. Kissire | Axalta Coating Systems Ltd. and its subsidiaries and affiliates | Director | Business Relationship - Routine sales to Axalta | No | ||||||||||
John K. Wulff | Hexion Holdings Corporation and its subsidiaries | Director | Business Relationship - Routine sales to, and purchases from, Hexion | No |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 37
|
|
Governance |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 38
|
|
Stock Ownership Information |
Amount and Nature of Beneficial Ownership of Common Stock | ||||||||||||||||||||||||||
Common Stock
Beneficially Owned(1) |
Rights to
Acquire Shares of Common Stock(2) |
Total
Common Stock Beneficially Owned |
Percentage of
Common Stock Beneficially Owned |
|||||||||||||||||||||||
The Vanguard Group, Inc.(3)
|
13,687,080 | — | 13,687,080 | 12.0 | ||||||||||||||||||||||
Wellington Management Company, LLP(4)
|
10,149,129 | — | 10,149,129 | 8.9 | ||||||||||||||||||||||
Dodge & Cox(5)
|
9,622,670 | — | 9,622,670 | 8.4 | ||||||||||||||||||||||
Capital International Investors(6)
|
8,105,272 | — | 8,105,272 | 7.1 | ||||||||||||||||||||||
BlackRock, Inc.(7)
|
7,560,484 | — | 7,560,484 | 6.6 | ||||||||||||||||||||||
Directors(8)(9)
|
||||||||||||||||||||||||||
Jean S. Blackwell | 5,377 | — | 5,377 | * | ||||||||||||||||||||||
William M. Brown | 103 | — | 103 | * | ||||||||||||||||||||||
Edward G. Galante | 8,074 | — | 8,074 | * | ||||||||||||||||||||||
Kathryn M. Hill | 7,625 | — | 7,625 | * | ||||||||||||||||||||||
David F. Hoffmeister | 44,571 | — | 44,571 | * | ||||||||||||||||||||||
Dr. Jay V. Ihlenfeld | 5,661 | — | 5,661 | * | ||||||||||||||||||||||
Deborah J. Kissire | 100 | 100 | * | |||||||||||||||||||||||
Kim K.W. Rucker | 56 | — | 56 | * | ||||||||||||||||||||||
John K. Wulff | 15,372 | — | 15,372 | * | ||||||||||||||||||||||
Named Executive Officers(8)
|
||||||||||||||||||||||||||
Todd L. Elliott | 36,681 |
(9)
|
— | 36,681 | * | |||||||||||||||||||||
Shannon L. Jurecka | 17,347 | — | 17,347 | * | ||||||||||||||||||||||
Thomas F. Kelly | 15,653 | — | 15,653 | * | ||||||||||||||||||||||
A. Lynne Puckett | 9,590 | — | 9,590 | * | ||||||||||||||||||||||
Scott A. Richardson | 34,799 |
(9)
|
— | 34,799 | * | |||||||||||||||||||||
Lori J. Ryerkerk(10)
|
13,049 | — | 13,049 | * | ||||||||||||||||||||||
All present directors, nominees and executive officers as a group (16 persons)(11)
|
227,382 | — | 227,382 | * |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 39
|
|
Stock Ownership Information |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 40
|
|
Audit Matters |
Dated: February 10, 2021 | John K. Wulff, Chairman |
(The Audit Committee report does not constitute soliciting material, and shall not be deemed to be filed or incorporated by reference into any other filing under the Securities Act of 1933, or the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates the Audit Committee report by reference therein.)
|
|||||||||
William M. Brown | |||||||||||
David F. Hoffmeister | |||||||||||
Deborah J. Kissire | |||||||||||
Kim K.W. Rucker |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 41
|
|
Audit Matters |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Audit Fees(1)
|
$ | 6,818,661 | $ | 6,062,500 | |||||||
Audit-related Fees(2)
|
97,380 | 57,450 | |||||||||
Tax Fees(3)
|
1,275,285 | 986,925 | |||||||||
All Other Fees(4)
|
— | — | |||||||||
Total Fees | $ | 8,191,326 | $ | 7,106,875 |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 42
|
|
Audit Matters |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 43
|
|
Executive Compensation |
ITEM 3: ADVISORY APPROVAL OF EXECUTIVE COMPENSATION
|
|||||
COMPENSATION DISCUSSION AND ANALYSIS | |||||
Executive Summary | |||||
Named Executive Officers | |||||
We Follow Compensation Governance Best Practices | |||||
Business Performance and the Impact of COVID-19 | |||||
Human Capital Management | |||||
Performance Goals for 2020 | |||||
2020 Payouts Aligned to Performance on Quantitative and Qualitative Metrics | |||||
2020 Say on Pay Vote and Stockholder Engagement | |||||
Compensation Philosophy and Elements of Pay | |||||
Compensation Philosophy | |||||
Compensation Objectives | |||||
Elements of Compensation | |||||
Setting Total Compensation | |||||
Our Compensation Comparator Group | |||||
Compensation Decisions | |||||
Base Salary | |||||
Annual Incentive Plan Awards | |||||
Long-Term Incentive Compensation | |||||
Compensation Governance | |||||
Compensation and Management Development Committee Oversight |
Role of the CMDC’s Independent Compensation Consultant | |||||
Role of Management and Management’s Consultant | |||||
Additional Information Regarding Executive Compensation | |||||
Other Compensation Elements | |||||
Executive Stock Ownership Requirements | |||||
Executive Compensation Clawback Policy | |||||
Tally Sheets | |||||
Tax and Accounting Considerations | |||||
COMPENSATION RISK ASSESSMENT | |||||
COMPENSATION AND MANAGEMENT DEVELOPMENT COMMITTEE REPORT | |||||
COMPENSATION TABLES | |||||
2020 Summary Compensation Table | |||||
2020 Grants of Plan-Based Awards Table | |||||
Outstanding Equity Awards at Fiscal 2020 Year-End Table | |||||
2020 Option Exercises and Stock Vested Table | |||||
2020 Pension Benefits Table | |||||
2020 Nonqualified Deferred Compensation Table | |||||
Potential Payments Upon Termination or Change in Control | |||||
CEO PAY RATIO |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 44
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 45
|
|
Executive Compensation |
Business Performance (further details can be found beginning on page 49)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ü
|
We responded proactively to the COVID-19 pandemic, protecting our cash position, optimizing our operations and enacting productivity improvements, as well as surpassed analyst earnings consensus for all four quarters in 2020. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
Our cumulative Adjusted EPS over the 2018-2020 period was $28.17, exceeding our previous three-year record $28.04 in Adjusted EPS from 2017-2019, and well above the $25.12 Adjusted EPS from 2016-2018. Our Adjusted EPS for 2020 was $7.64, down 19.8% from 2019 primarily due to the impact of the COVID-19 pandemic on product demand.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
Our net sales were $5.7 billion in 2020, down 10.2% from 2019, primarily as a result of (i) lower volume and (ii) lower pricing, across all of our segments due to depressed global economic conditions, reduced customer demand and overall deflationary environment for raw materials, all as a result of the COVID-19 pandemic.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
For 2020, our Adjusted EBIT was lower than the prior year by 23.4%, primarily reflecting the significant weakening of demand in the end markets served by our Acetyl Chain and Engineered Materials businesses. We believe that substantially all of the decline in Adjusted EBIT was directly due to the impact of the pandemic, with the exception of certain costs associated with turnaround activity that we accelerated into 2020. Despite the challenges of the pandemic, we achieved free cash flow of $950 million and ended the year with $955 million in cash and cash equivalents and the full $1.25 billion of borrowing availability under our senior unsecured revolving credit facility.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
Cumulative total stockholder return(1) over the prior 1-, 3- and 5-year periods was 8.3%, 29.7% and 114.6%, respectively, comparing favorably to the Dow Jones Chemical Index of industry peers.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
We completed initiatives for sustainable cost savings, and exceeded our gross productivity target for 2020 by 7%.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
We executed on strategic initiatives to maintain liquidity, including monetizing our passive stake in Polyplastics for approximately $1.6 billion in cash proceeds. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Total stockholder return, or TSR, is cumulative stock price appreciation pus dividends, with dividends reinvested. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Responding to the COVID-19 Pandemic
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ü
|
During the unprecedented COVID-19 pandemic, we quickly adapted to help protect our employees and adjust our manufacturing operations to meet new demands and challenges whilst maintaining our priorities of safety, product quality and customer service and remaining focused on our long-term strategy. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
We sought to protect our employees by temporarily closing the majority of corporate and sales offices, implementing robust cleaning and social-distancing procedures at our manufacturing and other sites, providing training and personal protective equipment to employees and developing infectious disease response and control procedures. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
We leveraged our manufacturing flexibility by proactively pausing production at certain facilities experiencing softened demand, and opportunistically used the period of weaker demand during part of 2020 to complete needed turnarounds across our production network. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
We worked to minimize U.S. employees missing pay by providing two additional weeks of paid time off and applying vacation time where facilities were required to be idle due to low demand.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
During the difficult times posed by the pandemic, we remained focused on delivering for our customers and creating value for our stockholders. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Strategy
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ü
|
Our strategic plan is designed to enhance and sustain the overall growth of the Company and builds upon our proven differentiated business models and leading positions in the Acetyl Chain and Engineered Materials segments. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü |
The Acetyl Chain focuses on optimizing profitability by leveraging the flexibility in its operations and an expansive global asset base.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü |
In Engineered Materials, a unique combination of one of the broadest materials portfolios in the industry and a unique project pipeline management system differentiates our ability to deliver customer value.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü |
The Acetate Tow segment continues to display a stabilized earnings profile despite declining global demand.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü |
We have a capital intensive business, and many of the decisions our NEOs take must be long-term in nature.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü | Our long-term strategy has not changed as a result of the COVID-19 pandemic. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 46
|
|
Executive Compensation |
Capital Allocation (further details can be found beginning on page 51)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ü
|
We use a rigorous approach to determine where to invest our robust cash flow. We typically prioritize projects contributing to internal profitability or savings, followed by discrete M&A and then returning capital to stockholders. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
Our cash flow from operations in 2020 was $1,343 million, while our free cash flow was $950 million. We undertook a number of initiatives in response to the COVID-19 pandemic to preserve the cash position of the Company and were pleased to finish the year with free cash flow above our original 2020 operating plan put in place before the onset of the pandemic.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
During 2020, we maintained our quarterly cash dividend rate of $0.62 per share in a challenging economic environment and paid an aggregate of $293 million in cash dividends. In January 2021, we increased our quarterly dividend to $0.68 per share.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
Supported in part by our monetization of our passive Polyplastics joint venture interest, we repurchased $650 million of our Common Stock under our announced share repurchase program.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
In total, we returned $943 million to stockholders in 2020.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder Responsiveness (further details can be found on page 56)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ü
|
During 2020, we reached out to stockholders representing 60% of outstanding shares and held discussions with stockholders holding 21% of outstanding shares.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
Our Lead Independent Director participated in discussions with several of our largest stockholders, as well as proxy advisors, and feedback from all discussions was conveyed to the entire Board.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü
|
In response to stockholder feedback, we have:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü re-affirmed our pay for performance philosophy;
ü enhanced our proxy disclosure of our pay practices;
ü adopted stockholder-friendly changes to our anti-pledging policy; and
ü adopted a more robust clawback policy.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Decisions Focus on Pay for Performance
(further details can be found beginning on page 60)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ü |
Under the original annual incentive plan formula adopted by the CDMC in February 2020 before the broader onset of the pandemic, our below-threshold Adjusted EBIT and working capital in 2020, partially offset by stewardship results that were better than target, produced a below-target company performance factor of 36%. Following a rigorous review of Company performance against key strategic priorities and objectives, described in more detail in “2020 Performance Summary,” the CMDC awarded a higher, but still below-target, company performance factor in recognition of strong performance across multiple metrics important to the sustained success of the Company despite the impact of the pandemic. This action positively impacted nearly 1,000 active employees in the organization who participate in the annual incentive plan. As discussed below, the CMDC believes this decision reflected the alignment of pay with our short-term performance in light of success in controllable actions to achieve positive business results and mitigate and offset the negative impact of the pandemic.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü |
With respect to our LTI program results, our 3-year Adjusted EPS and Return on Capital Employed (ROCE) produced a superior payout for our 2018-2020 performance restricted stock unit (PRSU) award. The 2018 PRSUs were paid out in 2021 at 183% of target, reflecting our record best three-year cumulative Adjusted EPS performance, industry leading ROCE and strong total shareholder return over the PRSU measurement period.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ü |
Our pay program has supported management’s execution of our business strategy, creating value for stockholders through long-term stock price growth and capital returned to stockholders.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Total stockholder return, or TSR, reflects cumulative stock price appreciation plus dividends, with dividends reinvested.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Named Executive Officer
|
Title (as of December 31, 2020)
|
|||||||
Lori J. Ryerkerk
|
Chairman and Chief Executive Officer
|
|||||||
Scott A. Richardson
|
Executive Vice President and Chief Financial Officer
|
|||||||
Thomas F. Kelly | Senior Vice President, Engineered Materials | |||||||
A. Lynne Puckett | Senior Vice President, General Counsel and Corporate Secretary | |||||||
Shannon L. Jurecka* | Senior Vice President and Chief Human Resources Officer | |||||||
Todd L. Elliott* | Former Senior Vice President, Acetyl Chain |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 47
|
|
Executive Compensation |
What We Do | |||||
ü | Provide a significant proportion of NEO compensation in the form of performance-based compensation | ||||
ü | Pay for performance, including using a high percentage of performance stock units for the annual equity grant to align interests with stockholders | ||||
ü | Use an appropriate comparator group when establishing compensation, which group is evaluated annually to ensure it remains appropriate | ||||
ü | 100% independent directors on our CMDC | ||||
ü | Maintain robust anti-hedging and anti-pledging policies | ||||
ü | Conduct an annual ”say-on-pay” advisory vote for stockholders | ||||
ü | Ongoing engagement with our stockholders to receive their feedback on business, governance and compensation matters | ||||
ü | Balance short- and long-term incentives, aligning long-term incentives with future performance and stockholder returns | ||||
ü | Include caps on individual payouts in incentive plans | ||||
ü | Maintain a clawback policy, which can be triggered by a financial restatements, breach of our business conduct policy or certain restrictive covenants, and other matters, and which covers annual bonus and long-term incentive awards with a 3-year look back | ||||
ü | Maintain market-aligned stock ownership guidelines requiring CEO to hold 6x base salary (4x for other NEOs) | ||||
ü | Apply double-trigger vesting in the event of a change in control in our long-term equity awards (i.e., participant must terminate after the event to receive benefits) | ||||
ü | Condition grants of long-term incentive awards on execution of a non-solicitation / noncompetition agreement | ||||
ü | Use an independent executive compensation consultant reporting to the CMDC | ||||
ü | Review executive compensation consultant and advisors for independence and performance | ||||
What We Don’t Do | |||||
X | No change in control excise tax ”gross-up” agreements | ||||
X | No excessive perquisites | ||||
X | No tax ”gross-ups” for perquisites, except for relocation and expatriate benefits | ||||
X | No employment agreements or multi-year compensation guarantees | ||||
X | No stock option repricing, reloads or exchange without stockholder approval | ||||
X | No dividend equivalents paid on unvested equity awards | ||||
X | No excessive risk-taking in our compensation programs |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 48
|
|
Executive Compensation |
Preserving Adjusted EBIT | Protecting Cash Flow and Liquidity | |||||||||||||
ü | Temporary reduction of production and plant operations | ü | Re-evaluation of capital expenditures | |||||||||||
ü | Actions to optimize Acetyl Chain production and network | ü | Modified and expanded factoring arrangements | |||||||||||
ü |
Increased emphasis on product areas experiencing relative strength (e.g. food packaging, home improvement materials, pharmaceutical and medical applications)
|
ü | Right-sized inventory to improve working capital and align with demand outlook | |||||||||||
ü | Opportunistic commercial deals and sourcing of low-priced raw materials | ü | Other actions to lower borrowing and other costs |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 49
|
|
Executive Compensation |
Net Sales | Earnings Per Share | Cash Flow | ||||||||||||
Net Sales ($Bn) |
|
|||||||||||||
GAAP EPS | ||||||||||||||
Adjusted EPS | ||||||||||||||
Cash from
Operations ($M) |
||||||||||||||
Free Cash Flow ($M) | ||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 50
|
|
Executive Compensation |
Total Stockholder Return |
Cash Returned to Stockholders
Share Repurchases and Dividends |
||||||||||
Celanese TSR (%) |
|
|
|||||||||
-●- S&P 500 Index (%)
|
|||||||||||
r Dow Jones Chemical Index (%)
|
|||||||||||
|
Share Repurchases ($M)
|
||||||||||
|
Cash Dividends ($M)
|
||||||||||
Women represent: | People of Color represent: | ||||||||||
24% of our global workforce(1)
|
60% of our active NEOs
|
30% of our U.S. workforce(1)
|
10% of our Board of Directors
|
||||||||
28% of our global management(1)
|
50% of our Board of Directors
|
29% of our U.S. management(1)
|
|||||||||
(1) Reflect year-end 2020 estimates
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 51
|
|
Executive Compensation |
Health, Safety and Environmental. We focus on more than the occupational safety of our employees, contractors and any visitors to our sites. We have an expanded view and measurement of "Stewardship" that includes process safety and environmental releases since they may have an impact on the communities where we live and work. We believe these stewardship values are critical to our success in attracting and retaining the best industry talent across the globe.
We believe in continuous improvement of our safety environment by building competency in our people and having a comprehensive management system built from recognized safety practices from around the globe. Through deliberate actions, we have improved our employee safety, process safety and environmental incident metrics in recent years.
|
Celanese’s First Human Capital Report to be Published in 2021 | |||||||
We plan to publish our first Human Capital Report in the first half of 2021, to contain comprehensive information on the Celanese approach to:
|
||||||||
ü | Diversity, Equity & Inclusion | |||||||
ü | Human Rights and Labor Practices | |||||||
ü | Recruitment and Talent Development | |||||||
ü | Wellness Programs | |||||||
ü | Employee Safety | |||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 52
|
|
Executive Compensation |
Highlights of Our Board’s Role in Human Capital Management |
Our Global Career Framework:
•provides clarity around opportunities that can exist at Celanese;
•removes artificial barriers to help employees own their own careers; and
•allows employees to regularly increase their scope and responsibility, both within an employee's current role and potential moves to new roles.
Our Technical Career Ladder supports employees in manufacturing and other technical functions in growing their careers.
Our Leadership Framework defines the attributes, competencies and behaviors of leaders at Celanese.
|
|||||||
We have a structured approach to reviewing talent with management and with the Board of Directors. We regularly review the following with the CMDC and the Board:
|
||||||||
ü
|
Employee development | |||||||
ü
|
Diversity, equity and inclusion | |||||||
ü | Workforce planning requirements | |||||||
ü | Talent development and succession planning | |||||||
ü | Annual review of executive succession with the full Board | |||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 53
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 54
|
|
Executive Compensation |
2020 Annual Incentive Plan Performance Measure | Weighting |
Actual
Result |
Achievement
as a % of Target |
Payout | |||||||||||||||||||
Adjusted EBIT Growth(1)
|
65% | (23.4)% | —% | —% | |||||||||||||||||||
Working Capital as % of Net Sales(1)(2)
|
15% |
20.2%
|
81.5% | 12.2% | |||||||||||||||||||
Stewardship: | |||||||||||||||||||||||
Occupational Safety | 5% | 20 | —% | —% | |||||||||||||||||||
Process Safety | 5 | 8 | 75% | 3.8% | |||||||||||||||||||
Environmental Releases | 5 | 9 | 200% | 10.0% | |||||||||||||||||||
Product Quality | 5% | 15 | 200% | 10.0% | |||||||||||||||||||
Aggregate Business Performance Modifier(3)
|
100% | 36.0% | |||||||||||||||||||||
(1) The plan metrics for Adjusted EBIT and working capital were as follows:
|
|||||||||||||||||||||||
Actual 2019 ($) | Threshold | Target | Superior | ||||||||||||||||||||
Adjusted EBIT growth | $1,476 million | (7.0)% | 3.0% | 14.0% | |||||||||||||||||||
Working Capital | 29.0% | 20.5% | 19.5% | 18.5% |
Performance
Measure |
Metric
Weighting |
Threshold | Target | Superior | Actual | Payout | ||||||||||||||
Adjusted EPS(1) (2)
|
70% | $23.55 | $25.70 | $28.73 | $28.17 | 181.5% | ||||||||||||||
Return on Capital Employed(1)
|
30% | 14% | 17.2%-19.2% | 21.7% | 21.3% | 185.3% | ||||||||||||||
Aggregate 2018 LTIP Payout | 182.7% |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 55
|
|
Executive Compensation |
Feedback We Heard | Our Perspective and Response | ||||
● Our stockholders urged robust disclosure describing any changes made to executive compensation programs in response to the COVID-19 pandemic to assist them in evaluating those programs’ alignment with stockholder interests.
|
● We are committed to providing transparency regarding our executive compensation practices and the CMDC’s rationale for its decisions.
● We made no modifications to the vesting or performance metrics of any LTIP awards granted prior to the onset of the pandemic.
● We have provided disclosure in this proxy statement beginning on pages 62 and 70 describing (i) the CMDC’s decision and rationale with respect to the 2020 annual incentive plan payouts and (ii) the modified structure, in part to address the impact of the pandemic, of the LTIP awards granted in February 2021.
|
||||
● Inquired about the underlying metrics of our PRSUs (Adjusted EPS and ROCE) and the CMDC’s perspective on why those metrics are the optimal metrics to align pay with stockholder interests. |
● The CMDC believes that Adjusted EPS is a strong driver of stockholder value, therefore the significant weighting of this metric in the PRSUs serves to focus management on delivering outcomes over the short and long term that will promote returns to stockholders.
● As we are in a capital intensive business, and many of the decisions our NEOs take must be long-term in nature, the CMDC believes that focusing management on effective deployment of capital, as measured by multi-year ROCE performance, significantly contributes to the delivery of stockholder value over the long term.
● The CMDC is committed to continuously evaluating the optimal LTIP structure for aligning our NEOs’ compensation with stockholder outcomes.
|
||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 56
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 57
|
|
Executive Compensation |
Our compensation-setting process consists of establishing overall target total compensation for each NEO and then allocating that compensation among base salary, annual incentive opportunities, and long-term incentive opportunities. While no specific formula is used to determine the allocation between cash and equity-based compensation, when allocating these compensation elements, we generally utilize a compensation mix more heavily weighted towards variable and incentive compensation. The CMDC strongly believes that the CEO’s compensation should be heavily weighted towards variable and long-term incentive awards to align her compensation with stockholder interests. The target pay mix for our CEO for 2020 is highlighted at the right , with approximately 84% performance-based or “at risk.”
|
|
|||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 58
|
|
Executive Compensation |
How the comparator group was chosen | How we use the comparator group | |||||||||||||||||||||||||
ü | Market capitalization | ü | As an input in developing base salary ranges, annual incentive targets and long-term incentive award ranges | |||||||||||||||||||||||
ü | Major global operations | |||||||||||||||||||||||||
ü | Chemical industry participant | ü | To assess competitiveness of total direct compensation | |||||||||||||||||||||||
ü | Comparable size based on revenue | ü | To benchmark the design of annual incentive bonus plans as well as the form and mix of equity and director pay | |||||||||||||||||||||||
ü | Number of employees | ü | To evaluate share utilization (overhang levels and run rate) | |||||||||||||||||||||||
ü | Complexity of business | ü | To benchmark share ownership guidelines | |||||||||||||||||||||||
ü | Comparable NEO roles and responsibilities | ü | As an input in designing compensation and benefit plans | |||||||||||||||||||||||
Air Products & Chemicals, Inc. | FMC Corp. | ||||
Albemarle Corporation | Huntsman Corp. | ||||
Ashland Global Holdings Inc. |
International Flavors & Fragrances Inc.
|
||||
Axalta Coating Systems Ltd. | LyondellBasell Industries N.V. | ||||
Avient Corporation (formerly PolyOne Corporation) | PPG Industries Inc. | ||||
CF Industries Holdings Inc.
|
RPM International Inc. | ||||
Eastman Chemical Co. |
The Chemours Company
|
||||
Ecolab Inc. | The Sherwin-Williams Company | ||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 59
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 60
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 61
|
|
Executive Compensation |
Metric | Weighting | Threshold | Target | Superior | Actual | Achievement | Payout | |||||||||||||||||||||||||||||||||||||
Adjusted EBIT Growth(1)
|
65% | (7.0)% | 3.0% | 14.0% | (23.4)% | —% | —% | |||||||||||||||||||||||||||||||||||||
Adjusted EBIT Amount ($ million) | $1,373 | $1,525 | $1,678 | $1,131 | ||||||||||||||||||||||||||||||||||||||||
Working Capital as % of net sales(2)
|
15% | 20.5% | 19.5% | 18.5% | 20.2% | 82% | 12.2% | |||||||||||||||||||||||||||||||||||||
Stewardship: | ||||||||||||||||||||||||||||||||||||||||||||
Occupational Safety(3)
|
5% | 28 | 20 | 18 | 20 | —% | —% | |||||||||||||||||||||||||||||||||||||
Process Safety(4)
|
5% | 9 | 7 | 6 | 8 | 75% | 3.8% | |||||||||||||||||||||||||||||||||||||
Environment(5)
|
5% | 14 | 11 | 9 | 9 | 200% | 10.0% | |||||||||||||||||||||||||||||||||||||
Quality(6)
|
5% | 28 | 22 | 18 | 15 | 200% | 10.0% | |||||||||||||||||||||||||||||||||||||
Aggregate Business Performance Modifier(7)
|
36.0% |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 62
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 63
|
|
Executive Compensation |
Strategic Priorities | Metrics and Achievements considered by CMDC | Original 2020 Operating Plan | Actual 2020 Achievement | ||||||||
Protecting the Company’s balance sheet, liquidity and financial flexibility
|
● Free Cash Flow | $800 - $900 million |
$950 million of free cash flow despite the significant reduction in product demand
|
||||||||
● Ratio of “consolidated funded indebtedness” to “consolidated EBITDA” (financial ratio maintenance covenant under our revolving credit facility) | 2.0 - 2.25 |
< 2.75, despite the significant impact to earnings of reduced product demand
|
|||||||||
● Return on Capital Invested (ROCE) | 18% | 16% | |||||||||
Operational productivity |
● Gross productivity measures
|
$150 million | > $200 million | ||||||||
● Complete end-to-end supply chain project | Completed substantially on-time and on-budget | ||||||||||
Promoting employee health, safety and engagement during COVID-19 |
● Employee Engagement
● Employee Well-Being
● Workforce Preparedness
● Change Implementation, including to remote work and new planning and business models
|
No specific goal |
● Rolled out enhanced family short-term and long-term support for employees
● Expanded assistance program and mental health support for employees during the pandemic and beyond ● Minimized reductions and furloughs, hired for critical roles and moved internal talent to position business for recovery ● Implemented information portals and regular communications to promote engagement |
||||||||
● Documented Workplace Transmissions of COVID-19 | N/A |
● One known workplace transmission of COVID-19 during 2020
|
|||||||||
Generating stockholder value | ● 1-yr Total Stockholder Return | No specific goal | 8.3% | ||||||||
● Close Strategic Transactions | No specific goal | ● Closed two strategic transactions (described in narrative below) | |||||||||
● Surpass Analyst Consensus on Quarterly Results | No specific goal | ● Surpassed analyst consensus for each quarter in fiscal 2020 | |||||||||
● Dividends and Share Repurchases | Increase |
● We maintained our cash dividend at $0.62 per share and returned $943 million to stockholders during 2020 through dividends and repurchases.
|
|||||||||
Stewardship |
The CMDC determined that the stewardship portion of the annual incentive plan would pay out according to actual achievement as reflected above in the table under “Results on Original Company Measures.”
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 64
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 65
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 66
|
|
Executive Compensation |
Executive | Objective Focus Areas Developed at the Beginning of the Year | Key Achievements in 2020 | |||||||||
Scott A. Richardson | Joint venture optimization |
ü
|
Led and completed the sale of the Polyplastics interest to our joint venture partner for $1.6 billion cash at a very favorable multiple (36x our share of 2019 earnings) in a challenging economy, strengthening our balance sheet and providing strategic and financial flexibility; | ||||||||
ü
|
Led the memorandum-of-understanding for the KEP restructuring, expected to be accretive to Adjusted EBIT and adjusted EPS following closing; and | ||||||||||
ü
|
For both of these transactions, leveraged his extensive commercial acumen and background in our business as the former Senior Vice President of Engineered Materials and VP, General Manager of Acetyl Chain in complex intellectual property and product negotiations. | ||||||||||
Capital-allocation, productivity and cash-generation objectives |
ü
|
Exercised critical leadership in achieving our overall productivity and cash flow results. | |||||||||
Talent development |
ü
|
Enhanced succession readiness and talent depth on his team. | |||||||||
Thomas F. Kelly | Engineered Materials financial and strategic objectives |
ü
|
Improved the Engineered Materials pipeline profile for products expected to be higher-margin and that support high-growth segments including high-tech mobility, 5G and pharma/medical. | ||||||||
ü
|
Enhanced our stable of sustainable products including leading the launches of BlueRidge (sustainable cellulosic alternative to single-use plastics) and POM ECO-B (which uses a mass-balanced mix of renewable and fossil feedstocks) and grew sales of Clarifoil (a compostable film packaging materials made from wood pulp). | ||||||||||
Sponsorship of talent and diversity initiatives |
ü
|
Chaired new Diversity, Equity & Inclusion Council and increased leadership diversity in Engineered Materials. | |||||||||
Engineered Materials productivity and efficiency initiatives | ü | Exceeded Engineered Materials productivity targets. |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 67
|
|
Executive Compensation |
Executive | Objective Focus Areas Developed at the Beginning of the Year | Key Achievements in 2020 | |||||||||
A. Lynne Puckett | ESG and sustainability strategy | ü |
Led the establishment of the ESG Council and launch of enhanced sustainability website, and development of strategy for goals and metrics.
|
||||||||
Efficiency initiatives | ü | Drove productivity improvements to contracting processes to enhance commercial agility. | |||||||||
Legal and compliance training |
ü
|
Enhanced compliance training throughout the organization. | |||||||||
Legal support of corporate strategies |
ü
|
Led legal support of key strategic transactions including Elotex, Polyplastics and KEP. | |||||||||
ü
|
Successfully resolved key legal matters during 2020. | ||||||||||
ü
|
Proactively positioned the Company’s operations to comply with COVID-related requirements. | ||||||||||
Shannon L. Jurecka | Increase female and minority hiring and leadership |
ü
|
Drove concrete progress on our diversity and culture initiatives, contributing to historically low attrition in 2020. | ||||||||
Leadership development, talent and succession process | ü | Enhanced processes for leadership development and succession. | |||||||||
HR data reporting / analysis | ü | Launched a new human resources data/analytics platform and talent portal, supporting HR and sustainability analytics. | |||||||||
Respectful workplace, employee wellbeing and onboarding initiatives | ü | Led actions to support the wellbeing of our workforce during COVID-19, including those described in this Proxy Statement. | |||||||||
Todd L. Elliott | (1) | ||||||||||
(1) Mr. Elliott retired from the Company effective July 3, 2020. He received a pro-rated bonus based on actual company performance following his qualifying retirement. |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 68
|
|
Executive Compensation |
Feature | Performance-Based PRSU Awards 2017-2020 | ||||
Form of award
|
Performance-vesting restricted stock unit
|
||||
Performance period
|
Three years
|
||||
Performance measure(s)
|
Adjusted EPS (70%) (earnings measure) and Return on Capital Employed (ROCE)(1) (30%) (return measure)
|
||||
Maximum payout
|
200% x target
|
||||
Performance limits based on Company stock performance
|
The payout on the Adjusted EPS component is limited to 150% (from the 200% maximum) if the Company’s relative total stockholder return (TSR) over the three-year performance period is in the bottom quartile of the S&P 500 index companies
|
||||
Dividends on unvested awards
|
No
|
||||
Alternate performance measure
|
No
|
||||
Performance
Measure |
Metric
Weighting |
Threshold | Target | Superior | Actual | Payout | |||||||||||||||||
Adjusted EPS(1) (2)
|
70% | $23.55 | $25.70 | $28.73 | $28.17 | 181.5% | |||||||||||||||||
Return on Capital Employed(1)(4)
|
30% | 14.0% | 17.2%-19.2% | 21.7% | 21.3% |
(3)
|
185.3% | ||||||||||||||||
Aggregate payout | 182.7% | ||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 69
|
|
Executive Compensation |
Payout Level | |||||||||||||||||
Metric
Weighting |
Below Threshold | Threshold | Target | Superior | |||||||||||||
Adjusted EPS(1) Growth(2)
|
70% | 0% | 50% | 100% | 200% | ||||||||||||
Return on Capital Employed(1)(3)
|
30% | 0% | 50% | 100% | 200% |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 70
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 71
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 72
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 73
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 74
|
|
Executive Compensation |
Named Executive Officer | Minimum Required Ownership |
Ownership as of December 31, 2020(1)(2)
|
|||||||||
Lori J. Ryerkerk | 6 times base salary | 1.5 times base salary | |||||||||
Scott A. Richardson
|
4 times base salary | 5.4 times base salary | |||||||||
Tom F. Kelly | 4 times base salary | 1.9 times base salary | |||||||||
A. Lynne Puckett | 4 times base salary | 1.6 times base salary | |||||||||
Shannon L. Jurecka | 4 times base salary | 2.5 times base salary | |||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 75
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 76
|
|
Executive Compensation |
Kathryn M. Hill, Chair
|
|||||
Jean S. Blackwell
|
|||||
Edward G. Galante
|
|||||
Dr. Jay V. Ihlenfeld
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 77
|
|
Executive Compensation |
Name and Principal
Position(1) |
Year |
Salary
($) |
Bonus
($)(2)
|
Stock
Awards
($)(3)
|
Option
Awards
($)(4)
|
Non-
Equity
Incentive
Plan
Compen-
sation
($)(5)
|
Change in
Pension
Value
and Non-Qualified Deferred Compen-
sation
Earnings
($)(6)
|
All
Other
Compen-
sation
($)(7)
|
Total
($) |
|||||||||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||||||||||||||||||||||
Lori J. Ryerkerk
Chairman. Chief Executive Officer and President |
2020 | 1,065,385 | — | 4,499,869 |
(8)
|
— | 1,385,000 | — | 117,192 | 7,067,446 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 613,846 | 35,000 | 4,999,797 |
(8)
|
— | 244,065 | — | 135,095 | 6,027,803 | |||||||||||||||||||||||||||||||||||||||||||||||
Scott A. Richardson
Executive Vice President and Chief Financial Officer |
2020 | 623,077 | — | 1,699,862 |
(8)
|
— | 635,538 | 4,000 | 88,535 | 3,051,012 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 595,385 | — | 1,499,877 |
(8)
|
— | 202,907 | 5,000 | 77,378 | 2,380,547 | |||||||||||||||||||||||||||||||||||||||||||||||
2018 | 513,846 | — | 799,904 |
(8)
|
— | 968,400 | — | 66,949 | 2,349,099 | |||||||||||||||||||||||||||||||||||||||||||||||
Thomas F. Kelly
Senior Vice President, Engineered Materials |
2020 | 510,000 | — | 1,099,838 |
(8)
|
— | 342,720 | 1,000 | 314,295 | 2,267,853 | ||||||||||||||||||||||||||||||||||||||||||||||
A. Lynne Puckett
Senior Vice President & General Counsel |
2020 | 532,000 | — | 1,099,838 |
(8)
|
— | 335,160 | — | 58,520 | 2,025,518 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 446,000 | 375,000 | 2,799,814 |
(8)
|
— | 132,997 | — | 101,345 | 3,855,156 | |||||||||||||||||||||||||||||||||||||||||||||||
Shannon L. Jurecka
Senior Vice President & Chief Human Resources Officer |
2020 | 495,385 | — | 999,834 |
(8)
|
— | 346,769 | — | 54,492 | 1,896,480 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 475,385 | — | 799,886 |
(8)
|
— | 132,309 | — | 52,292 | 1,459,872 | |||||||||||||||||||||||||||||||||||||||||||||||
2018 | 450,769 | 40,000 | 599,858 |
(8)
|
— | 720,000 | — | 49,585 | 1,860,212 | |||||||||||||||||||||||||||||||||||||||||||||||
Todd L. Elliott
Former Senior Vice President, Acetyl Chain |
2020 | 295,385 | — | 1,399,794 |
(8)
|
— | 79,698 | 681,000 | 269,591 | 2,725,468 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 490,769 | — | 799,889 |
(8)
|
— | 120,000 | 488,000 | 192,983 | 2,091,641 | |||||||||||||||||||||||||||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 78
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 79
|
|
Executive Compensation |
2020 Annual PRSU Awards | ||||||||||||||
Name | Target Number of PRSUs | Value at Target Performance | Maximum Number of PRSUs | Value at Highest Performance | ||||||||||
Lori J. Ryerkerk | 30,951 | $3,149,883 | 61,902 | $6,299,766 | ||||||||||
Scott A. Richardson | 11,692 | $1,189,895 | 23,384 | $2,379,790 | ||||||||||
Thomas F. Kelly | 7,565 | $769,890 | 15,130 | $1,539,780 | ||||||||||
A. Lynne Puckett | 7,565 | $769,890 | 15,130 | $1,539,780 | ||||||||||
Shannon L. Jurecka | 6,877 | $699,872 | 13,754 | $1,399,744 | ||||||||||
Todd L. Elliott | 9,628 | $979,842 | 19,256 | $1,959,684 | ||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 80
|
|
Executive Compensation |
Estimated Future Payouts
Under Non-Equity Incentive Plan Awards |
Estimated Future Payouts
Under Equity Incentive Plan Awards |
All Other Stock Awards |
Grant
Date Fair Value of Stock and Option Awards ($) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number
of Shares of Stock or Units (#) |
Number
of Securities Under- lying Options (#) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Grant Date |
Thres-
hold ($) |
Target
($) |
Maxi-
mum ($) |
Thres-hold
(#) |
Target
(#) |
Maxi-
mum (#) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (l) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lori J. Ryerkerk | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AIP(1)
|
N/A | 692,500 | 1,385,000 | 4,155,000 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRSUs(2)
|
2/5/20 | — | — | — | 15,476 | 30,951 | 61,902 | — | — | 3,149,883 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time RSUs(2)
|
2/5/20 | — | — | — | — | — | — | 12,921 | — | 1,349,986 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scott A. Richardson | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AIP(1)
|
N/A | 264,808 | 529,615 | 1,588,845 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRSUs(2)
|
2/5/20 | — | — | — | 5,846 | 11,692 | 23,384 | — | — | 1,189,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time RSUs(2)
|
2/5/20 | — | — | — | — | — | — | 4,881 | — | 509,967 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thomas F. Kelly | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AIP(1)
|
N/A | 178,500 | 357,000 | 1,071,000 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRSUs(2)
|
2/5/20 | — | — | — | 3,783 | 7,565 | 15,130 | — | — | 769,890 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time RSUs(2)
|
2/5/20 | — | — | — | — | — | — | 3,158 | — | 329,948 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
A. Lynne Puckett | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AIP(1)
|
N/A | 199,500 | 399,000 | 1,197,000 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRSUs(2)
|
2/5/20 | — | — | — | 3,783 | 7,565 | 15,130 | — | — | 769,890 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time RSUs(2)
|
2/5/20 | — | — | — | — | — | — | 3,158 | — | 329,948 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shannon L. Jurecka | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AIP(1)
|
N/A | 173,385 | 346,769 | 1,040,308 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRSUs(2)
|
2/5/20 | — | — | — | 3,439 | 6,877 | 13,754 | — | — | 699,872 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time RSUs(2)
|
2/5/20 | — | — | — | — | — | — | 2,871 | — | 299,962 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Todd L. Elliott | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AIP(1)
|
N/A | 110,769 | 221,538 | 664,615 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRSUs(2)
|
2/5/20 | — | — | — | 4,814 | 9,628 | 19,256 | — | — | 979,842 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time RSUs(2)
|
2/5/20 | — | — | — | — | — | — | 4,026 | — | 419,952 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 81
|
|
Executive Compensation |
Option Awards(1)
|
Stock Awards(1)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name |
Grant
Date |
Number of
Securities Underlying Unexer- cised Options (#) Exercisable |
Number of
Securities Underlying Unexer- cised Options (#) Unexer-cisable |
Option
Exercise Price ($) |
Option
Expiration Date |
Number of
Shares or Units of Stock That Have Not Vested (#) |
Market
Value of Shares or Units of Stock That Have Not Vested (2)
($)
|
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
Equity
Incentive
Plan
Awards:
Market or Payout Value of Unearned Shares, Units or
Other
Rights
That Have
Not Vested (2)
($)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (e) | (f) | (g) | (h) | (i) | (j) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lori J. Ryerkerk | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5/1/19 | — | — | — | — | 5,842 |
(3)
|
759,109 | 20,880 |
(4)
|
2,713,147 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
5/1/19 | — | — | — | — | 9,686 |
(5)
|
1,258,599 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/5/20 | — | — | — | — | 12,921 |
(9)
|
1,678,955 | 30,951 |
(10)
|
4,021,773 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scott A. Richardson | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/8/18 | — | — | — | — | 15,538 |
(6)
|
2,019,008 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/6/19 | — | — | — | — | 3,209 |
(7)
|
416,977 | 11,457 |
(8)
|
1,488,723 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/5/20 | — | — | — | — | 4,881 |
(9)
|
634,237 | 11,692 |
(10)
|
1,519,258 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thomas F. Kelly | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1/14/19 | — | — | — | — | 11,345 |
(6)
|
1,474,169 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1/14/19 | — | — | — | — | 8,917 |
(11)
|
1,158,675 | — |
(6)
|
— | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/6/19 | — | — | — | — | 1,712 |
(7)
|
222,457 | 6,090 |
(8)
|
791,335 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/5/20 | — | — | — | — | 3,158 |
(9)
|
410,351 | 7,565 |
(10)
|
982,996 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 82
|
|
Executive Compensation |
A. Lynne Puckett | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/13/19 | — | — | — | — | 2,110 |
(7)
|
274,173 | 7,529 |
(8)
|
978,318 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/13/19 | — | — | — | — | 12,659 |
(12)
|
1,644,910 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/5/20 | — | — | — | — | 3,158 |
(9)
|
410,351 | 7,565 |
(10)
|
982,996 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shannon L. Jurecka | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/8/18 | — | — | — | — | 11,652 |
(6)
|
1,514,061 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/6/19 | — | — | — | — | 1,712 |
(7)
|
222,457 | 6,110 |
(8)
|
793,933 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/5/20 | — | — | — | — | 2,871 |
(9)
|
373,058 | 6,877 |
(10)
|
893,597 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Todd L. Elliott | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/8/18 | — | — | — | — | 9,405 |
(6)
|
1,222,086 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/8/18 | — | — | — | — | 430 |
(13)
|
55,874 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/6/19 | — | — | — | — | 1,031 |
(7)
|
133,968 | 2,963 |
(8)
|
385,012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2/5/20 | — | — | — | — | 2,830 |
(9)
|
367,730 | 1,562 |
(10)
|
202,966 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 83
|
|
Executive Compensation |
Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||||||||||
Name |
Number of Shares
Acquired on Exercise (#) |
Value
Realized on Exercise ($) |
Number of Shares
Acquired on
Vesting
(#)(1)
|
Value
Realized
on Vesting
($)(2)
|
|||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | |||||||||||||||||||||||||||||||||||||
Lori J. Ryerkerk | — | — | 12,562 | 1,091,098 | |||||||||||||||||||||||||||||||||||||
Scott A. Richardson | — | — | 10,483 | 1,148,727 | |||||||||||||||||||||||||||||||||||||
Thomas F. Kelly | — | — | 5,233 | 612,271 | |||||||||||||||||||||||||||||||||||||
A. Lynne Puckett | — | — | 7,272 | 796,866 | |||||||||||||||||||||||||||||||||||||
Shannon L. Jurecka | — | — | 6,395 | 721,357 | |||||||||||||||||||||||||||||||||||||
Todd L. Elliott | — | — | 11,455 | 1,280,753 | |||||||||||||||||||||||||||||||||||||
Name |
Plan Name(1)
|
Number
of Years Credited Service (#) |
Present
Value of Accumulated Benefit
($)(2)
|
Payments
During Last Fiscal Year ($) |
|||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | |||||||||||||||||||||||||||||||
Lori J. Ryerkerk | CARPP | — | — | — | |||||||||||||||||||||||||||||||
Scott A. Richardson | CARPP | 8.7500 | 88,000 | — | |||||||||||||||||||||||||||||||
Thomas F. Kelly | CARPP | 1.3333 | 17,000 | ||||||||||||||||||||||||||||||||
A. Lynne Puckett | CARPP | — | — | — | |||||||||||||||||||||||||||||||
Shannon L. Jurecka | CARPP | — | — | — | |||||||||||||||||||||||||||||||
Todd L. Elliott | CARPP | 26.3333 | 2,200,000 | 38,254 | |||||||||||||||||||||||||||||||
Todd L. Elliott |
CASRPP
|
26.3333 | 1,572,000 | — |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 84
|
|
Executive Compensation |
Name | Plan Name |
Executive
Contributions in Last FY ($) |
Registrant
Contributions in Last FY
($)(1)
|
Aggregate
Earnings in Last FY
($)(2)
|
Aggregate
Withdrawal/ Distributions ($) |
Aggregate
Balance at Last
FYE
($)(3)
|
|||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | |||||||||||||||||||||||||||||||||||
Lori J. Ryerkerk | CASRSP | — | 85,842 | 3,521 | — | 40,245 | |||||||||||||||||||||||||||||||||||
Scott A. Richardson | CASRSP | — | 37,188 | 20,167 | — | 170,630 | |||||||||||||||||||||||||||||||||||
Thomas F. Kelly | CASRSP | — | 26,800 | 1,734 | — | 18,809 | |||||||||||||||||||||||||||||||||||
A. Lynne Puckett | CASRSP | — | 27,170 | 1,751 | — | 20,011 | |||||||||||||||||||||||||||||||||||
Shannon L. Jurecka | CASRSP | — | 23,142 | 6,812 | — | 61,692 | |||||||||||||||||||||||||||||||||||
Todd L. Elliott | CASRSP | — | — | 38,940 | 337,371 | — | |||||||||||||||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 85
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 86
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 87
|
|
Executive Compensation |
For purposes of the change in control agreements:
|
|||||||||||
“cause” generally means (i) a willful failure to perform one’s duties (other than as a result of total or partial incapacity due to physical or mental illness) for a period of 30 days following written notice by the Company of such failure; (ii) conviction of, or a plea of nolo contendere to, (x) a felony under the laws of the United States or any state thereof or any similar criminal act in a jurisdiction outside the United States or (y) a crime involving moral turpitude; (iii) willful malfeasance or willful misconduct which is demonstrably injurious to the Company or its Affiliates (as defined); (iv) any act of fraud; (v) any material violation of the Company’s code of conduct; (vi) any material violation of the Company’s policies concerning harassment or discrimination; (vii) conduct that causes material harm to the business reputation of the Company or its Affiliates; or (viii) breach of the confidentiality, non-competition, or non-solicitation provisions of the change in control agreement.
|
|||||||||||
“good reason” generally means (i) a material diminution in base salary or annual bonus opportunity; (ii) a material diminution in authority, duties, or responsibilities (including status, offices, titles and reporting requirements); (iii) a material change in the geographic location; (iv) the failure of the Company to pay compensation or benefits when due, or (v) any other action or inaction that constitutes a material breach by the Company of the change in control agreement.
|
|||||||||||
“change in control” generally means any one of the following events: (a) any person becoming the beneficial owner of thirty percent (30%) or more of Company’s voting securities (other than as a result of certain issuances or open market purchases approved by incumbent directors); (b) the Company’s incumbent directors ceasing to constitute at least a majority of the board of directors; (c) the stockholders of the Company approving a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction, or the sale or other disposition of all or substantially all of the Company’s assets, unless immediately following such transaction, (i) all or substantially all of the beneficial owners of the Company’s voting securities prior to such transaction are the beneficial owners of more than 50% of the combined voting power of the securities of the surviving entity in the transaction, (ii) no person is the beneficial owner of 30% or more of the combined voting power of the surviving entity in the transaction and (iii) at least a majority of the members of the board of directors of the surviving entity are incumbent directors; or (d) approval by the Company’s stockholders of a complete liquidation and dissolution of the Company. The preceding was a summary of the definition of a change in control, so please refer to actual text of the definition as set forth in the change in control agreements.
|
|||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 88
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 89
|
|
Executive Compensation |
Termination of Employment | Change in Control | |||||||||||||||||||||||||||||||||||||||||||
Voluntarily or
for Cause |
Involuntarily
without Cause |
Death | Disability | Retirement |
Without
Termination |
With
Termination |
||||||||||||||||||||||||||||||||||||||
Lori J. Ryerkerk | ||||||||||||||||||||||||||||||||||||||||||||
Cash Payments | ||||||||||||||||||||||||||||||||||||||||||||
Severance Payment(1)
|
$ | — | $ | 6,078,001 | $ | — | $ | — | $ | — | $ | — | $ | 7,258,000 | ||||||||||||||||||||||||||||||
Equity Value | ||||||||||||||||||||||||||||||||||||||||||||
RSUs(2)
|
— | 2,455,866 | 2,455,866 | 2,455,866 | 3,696,663 | 3,696,663 | ||||||||||||||||||||||||||||||||||||||
PRSUs(3)
|
— | 2,791,761 | 2,791,761 | 2,791,761 | 6,734,920 | 6,734,920 | ||||||||||||||||||||||||||||||||||||||
Benefits & Perquisites | ||||||||||||||||||||||||||||||||||||||||||||
Welfare Benefits Continuation(4)
|
— | 22,559 | — | — | — | — | 22,559 | |||||||||||||||||||||||||||||||||||||
Outplacement Services(5)
|
— | 16,200 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Reduction to Avoid Excise Tax(6)
|
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 11,364,387 | $ | 5,247,627 | $ | 5,247,627 | $ | — | $ | 10,431,583 | $ | 17,712,142 | ||||||||||||||||||||||||||||||
Scott A. Richardson | ||||||||||||||||||||||||||||||||||||||||||||
Cash Payments | ||||||||||||||||||||||||||||||||||||||||||||
Severance Payment(1)
|
$ | — | $ | 2,163,116 | $ | — | $ | — | $ | — | $ | — | $ | 2,704,939 | ||||||||||||||||||||||||||||||
Equity Value | ||||||||||||||||||||||||||||||||||||||||||||
RSUs(2)
|
— | 653,988 | 653,988 | 653,988 | 1,051,215 | 1,051,215 | ||||||||||||||||||||||||||||||||||||||
PRSUs(3)
|
— | 3,289,301 | 2,422,601 | 2,422,601 | 5,029,198 | 5,029,198 | ||||||||||||||||||||||||||||||||||||||
Benefits & Perquisites | ||||||||||||||||||||||||||||||||||||||||||||
Welfare Benefits Continuation(4)
|
— | 26,692 | — | — | — | — | 40,038 | |||||||||||||||||||||||||||||||||||||
Outplacement Services(5)
|
— | 16,200 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Reduction to Avoid Excise Tax(6)
|
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 6,149,297 | $ | 3,076,589 | $ | 3,076,589 | $ | — | $ | 6,080,413 | $ | 8,825,390 | ||||||||||||||||||||||||||||||
Thomas F. Kelly | ||||||||||||||||||||||||||||||||||||||||||||
Cash Payments | ||||||||||||||||||||||||||||||||||||||||||||
Severance Payment(1)
|
$ | — | $ | 1,608,600 | $ | — | $ | — | $ | — | $ | — | $ | 1,887,600 | ||||||||||||||||||||||||||||||
Equity Value | ||||||||||||||||||||||||||||||||||||||||||||
RSUs(2)
|
— | 1,316,162 | 1,316,162 | 1,316,162 | — | 1,791,483 | 1,791,483 | |||||||||||||||||||||||||||||||||||||
PRSUs(3)
|
— | 2,146,739 | 1,529,264 | 1,529,264 | — | 3,250,189 | 3,250,189 | |||||||||||||||||||||||||||||||||||||
Benefits & Perquisites | ||||||||||||||||||||||||||||||||||||||||||||
Welfare Benefits Continuation(4)
|
— | 26,692 | — | — | — | — | 40,038 | |||||||||||||||||||||||||||||||||||||
Outplacement Services(5)
|
— | 16,200 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Reduction to Avoid Excise Tax(6)
|
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 5,114,393 | $ | 2,845,426 | $ | 2,845,426 | $ | — | $ | 5,041,672 | $ | 6,969,310 | ||||||||||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 90
|
|
Executive Compensation |
Termination of Employment | Change in Control | |||||||||||||||||||||||||||||||||||||||||||
Voluntarily or
for Cause |
Involuntarily
without Cause |
Death | Disability | Retirement |
Without
Termination |
With
Termination |
||||||||||||||||||||||||||||||||||||||
A. Lynne Puckett | ||||||||||||||||||||||||||||||||||||||||||||
Cash Payments | ||||||||||||||||||||||||||||||||||||||||||||
Severance Payment(1)
|
$ | — | $ | 1,721,700 | $ | — | $ | — | $ | — | $ | — | $ | 2,178,700 | ||||||||||||||||||||||||||||||
Equity Value | ||||||||||||||||||||||||||||||||||||||||||||
RSUs(2)
|
— | 1,690,909 | 1,690,909 | 1,690,909 | 2,329,434 | 2,329,434 | ||||||||||||||||||||||||||||||||||||||
PRSUs(3)
|
— | 900,614 | 900,614 | 900,614 | 1,961,314 | 1,961,314 | ||||||||||||||||||||||||||||||||||||||
Benefits & Perquisites | ||||||||||||||||||||||||||||||||||||||||||||
Welfare Benefits Continuation(4)
|
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Outplacement Services(5)
|
— | 16,200 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Reduction to Avoid Excise Tax(6)
|
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 4,329,423 | $ | 2,591,523 | $ | 2,591,523 | $ | — | $ | 4,290,748 | $ | 6,469,448 | ||||||||||||||||||||||||||||||
Shannon L. Jurecka(7)
|
||||||||||||||||||||||||||||||||||||||||||||
Cash Payments | ||||||||||||||||||||||||||||||||||||||||||||
Severance Payment(1)
|
$ | — | $ | 1,547,570 | $ | — | $ | — | $ | — | $ | — | $ | 2,137,622 | ||||||||||||||||||||||||||||||
Equity Value | ||||||||||||||||||||||||||||||||||||||||||||
RSUs(2)
|
— | 367,210 | 367,210 | 367,210 | — | 595,515 | 595,515 | |||||||||||||||||||||||||||||||||||||
PRSUs(3)
|
— | 2,193,257 | 1,543,427 | 1,543,427 | — | 3,203,281 | 3,203,281 | |||||||||||||||||||||||||||||||||||||
Benefits & Perquisites | ||||||||||||||||||||||||||||||||||||||||||||
Welfare Benefits Continuation(4)
|
— | 15,039 | — | — | — | — | 22,559 | |||||||||||||||||||||||||||||||||||||
Outplacement Services(5)
|
— | 16,200 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Reduction to Avoid Excise Tax(6)
|
— | — | — | — | — | (657,561) | — | |||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 4,139,276 | $ | 1,910,637 | $ | 1,910,637 | $ | — | $ | 3,141,235 | $ | 5,958,977 | ||||||||||||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 91
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 92
|
|
Executive Compensation |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 93
|
|
Questions and Answers about the Annual Meeting |
IMPORTANT NOTE: If you plan to attend the Annual Meeting virtually, you must follow these instructions to gain access to the meeting.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 94
|
|
Questions and Answers about the Annual Meeting |
Proposal
|
Voting Choices and Board Recommendation
|
Voting Standard
|
||||||||||||||||||
Item 1: Election of Directors
|
•
|
Vote in favor of all or specific nominees;
|
Majority of votes cast
|
|||||||||||||||||
•
|
Vote against all or specific nominees; or
|
|||||||||||||||||||
•
|
Abstain from voting with respect to all or specific nominees.
|
|||||||||||||||||||
The Board recommends a vote FOR each of the Director nominees.
|
||||||||||||||||||||
Item 2: Ratification of the Appointment of KPMG LLP as Independent Registered Public Accounting Firm
|
•
|
Vote in favor of the ratification;
|
Majority of voting power(1)
|
|||||||||||||||||
•
|
Vote against the ratification; or
|
|||||||||||||||||||
•
|
Abstain from voting on the ratification.
|
|||||||||||||||||||
The Board recommends a vote FOR the ratification.
|
||||||||||||||||||||
Item 3: Advisory Vote to Approve Executive Compensation
|
•
|
Vote in favor of the advisory proposal;
|
Majority of voting power(1)
|
|||||||||||||||||
•
|
Vote against the advisory proposal; or
|
|||||||||||||||||||
•
|
Abstain from voting on the advisory proposal.
|
|||||||||||||||||||
The Board recommends a vote FOR the advisory vote to approve executive compensation.
|
||||||||||||||||||||
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 95
|
|
Questions and Answers about the Annual Meeting |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 96
|
|
Questions and Answers about the Annual Meeting |
●
|
FOR the election of all director nominees as set forth in this Proxy Statement;
|
|||||||||||||
●
|
FOR the proposal to ratify the appointment of KPMG LLP as independent registered public accounting firm; and
|
|||||||||||||
●
|
FOR the advisory vote to approve executive compensation.
|
●
|
giving written notice to the Corporate Secretary of the Company;
|
||||
●
|
delivering a later-dated proxy; or
|
||||
●
|
voting at the virtual meeting.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 97
|
|
Questions and Answers about the Annual Meeting |
●
|
as necessary to meet applicable legal requirements and to assert or defend claims for or against the Company;
|
||||
●
|
in the case of a contested proxy solicitation;
|
||||
●
|
if a stockholder makes a written comment on the proxy card or otherwise communicates his or her vote to management; or
|
||||
●
|
to allow the independent inspector of election to certify the results of the vote.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 98
|
|
Questions and Answers about the Annual Meeting |
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 99
|
|
Questions and Answers about the Annual Meeting |
●
|
if the proposal is to be included in our proxy statement, pursuant to Rule 14a-8 under the 1934 Act, the proposal is received at on or before November 5, 2021; or
|
||||
●
|
if the proposal is not to be included in our proxy statement, pursuant to our by-laws, the proposal is submitted in writing to the Corporate Secretary on or before January 15, 2022 (but not earlier than December 16, 2021), and such proposal is, under Delaware General Corporation Law, an appropriate subject for stockholder action.
|
Celanese 2021 / Notice of Annual Meeting and Proxy Statement / 100
|
1
|
Exhibit A |
2
|
Exhibit A |
3
|
Exhibit A |
Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(In $ millions, except percentages) | |||||||||||||||||||||||
Net sales | 5,655 | 6,297 | |||||||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 1,985 | 852 | |||||||||||||||||||||
(Earnings) loss from discontinued operations | 12 | 6 | |||||||||||||||||||||
Interest income | (6) | (6) | |||||||||||||||||||||
Interest expense | 109 | 115 | |||||||||||||||||||||
Refinancing expense | — | 4 | |||||||||||||||||||||
Income tax provision (benefit) | 247 | 124 | |||||||||||||||||||||
Certain items attributable to Celanese Corporation(1)
|
(1,216) | 381 | |||||||||||||||||||||
Adjusted EBIT / Adjusted EBIT Margin | 1,131 | 20.0 | % | 1,476 | 23.4 | % | |||||||||||||||||
Depreciation and amortization expense(2)
|
344 | 329 | |||||||||||||||||||||
Operating EBITDA | 1,475 | 1,805 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||
(In $ millions, except percentages) | |||||||||||||||||||||||||||||||||||
Net sales | 7,155 | 6,140 | 5,389 | ||||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 1,207 | 843 | 900 | ||||||||||||||||||||||||||||||||
(Earnings) loss from discontinued operations | 5 | 13 | 2 | ||||||||||||||||||||||||||||||||
Interest income | (6) | (2) | (2) | ||||||||||||||||||||||||||||||||
Interest expense | 125 | 122 | 120 | ||||||||||||||||||||||||||||||||
Refinancing expense | 1 | — | 6 | ||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 292 | 213 | 122 | ||||||||||||||||||||||||||||||||
Certain items attributable to Celanese Corporation(1)
|
228 | 167 | 130 | ||||||||||||||||||||||||||||||||
Adjusted EBIT / Adjusted EBIT Margin | 1,852 | 25.9 | % | 1,356 | 22.1 | % | 1,278 | 23.7 | % | ||||||||||||||||||||||||||
Depreciation and amortization expense(2)
|
316 | 303 | 288 | ||||||||||||||||||||||||||||||||
Operating EBITDA | 2,168 | 1,659 | 1,566 |
4
|
Exhibit A |
Year Ended December 31, | Year over Year Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
per
share |
per
share |
||||||||||||||||||||||||||||||||||||||||||||||||||||
(In $ millions, except per share data and percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to Celanese Corporation
|
1,997 | 16.85 | 858 | 6.89 | 144.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 247 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before tax | 2,244 | 982 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Certain items attributable to Celanese Corporation(1)
|
(1,216) | 381 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Refinancing and related expenses | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted earnings (loss) from continuing operations before tax
|
1,028 | 1,367 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (provision) benefit on adjusted earnings(2)
|
(123) | (178) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted earnings (loss) from continuing operations(3)
|
905 | 7.64 | 1,189 | 9.53 | (19.8) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted shares (in millions)(4)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 117.8 | 123.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Incremental shares attributable to equity awards | 0.7 | 0.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total diluted shares | 118.5 | 124.7 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||
per
share |
per
share |
per
share |
|||||||||||||||||||||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to Celanese Corporation
|
1,212 | 8.95 | 856 | 6.19 | 902 | 6.19 | |||||||||||||||||||||||||||||
Income tax provision (benefit) | 292 | 213 | 122 | ||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before tax | 1,504 | 1,069 | 1,024 | ||||||||||||||||||||||||||||||||
Certain items attributable to Celanese Corporation(1)
|
228 | 167 | 130 | ||||||||||||||||||||||||||||||||
Refinancing and related expenses | 1 | — | 6 | ||||||||||||||||||||||||||||||||
Adjusted earnings (loss) from continuing operations before tax
|
1,733 | 1,236 | 1,160 | ||||||||||||||||||||||||||||||||
Income tax (provision) benefit on adjusted earnings(2)
|
(243) | (198) | (197) | ||||||||||||||||||||||||||||||||
Adjusted earnings (loss) from continuing operations(3)
|
1,490 | 11.00 | 1,038 | 7.51 | 963 | 6.61 | |||||||||||||||||||||||||||||
Diluted shares (in millions)(4)
|
|||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 134.3 | 137.9 | 144.9 | ||||||||||||||||||||||||||||||||
Incremental shares attributable to equity awards | 1.1 | 0.4 | 0.8 | ||||||||||||||||||||||||||||||||
Total diluted shares | 135.4 | 138.3 | 145.7 |
5
|
Exhibit A |
Actual Plan Asset Returns | Expected Plan Asset Returns | ||||||||||
(In percentages | |||||||||||
2020 | 12.4 | 6.5 | |||||||||
2019 | 16.7 | 6.5 | |||||||||
2018 | (3.9) | 6.7 | |||||||||
2017 | 10.5 | 7.3 | |||||||||
2016 | 6.9 | 7.3 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(In percentages) | |||||||||||||||||||||||||||||
US GAAP effective tax rate | 11 | 13 | 19 | 20 | 12 | ||||||||||||||||||||||||
Discrete quarterly recognition of GAAP items(1)
|
12 | — | — | (11) | 1 | ||||||||||||||||||||||||
Tax impact of other charges and adjustments(2)
|
(9) | — | — | 1 | 3 | ||||||||||||||||||||||||
Utilization of foreign tax credits | (3) | (3) | — | 20 | — | ||||||||||||||||||||||||
Changes in valuation allowances, excluding impact of other charges and adjustments(3)
|
— | 3 | (5) | (13) | 2 | ||||||||||||||||||||||||
Other(4)
|
1 | — | — | (1) | (1) | ||||||||||||||||||||||||
Adjusted tax rate | 12 | 13 | 14 | 16 | 17 |
6
|
Exhibit A |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 592 | (493) | (507) | (549) | (439) | ||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (1,471) | (935) | (1,165) | (351) | (759) | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | 1,343 | 1,454 | 1,558 | 803 | 893 | ||||||||||||||||||||||||
Capital expenditures on property, plant and equipment | (364) | (370) | (337) | (267) | (246) | ||||||||||||||||||||||||
Capital (distributions to) contributions from NCI | (29) | (10) | (23) | (27) | (24) | ||||||||||||||||||||||||
Free cash flow(1)(2)
|
950 | 1,074 | 1,198 | 509 | 623 |
2020 | |||||||||||||||||
(In $ millions,
except percentages) |
|||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 1,985 | ||||||||||||||||
Adjusted EBIT | 1,131 | ||||||||||||||||
Adjusted effective tax rate | 12 | % | |||||||||||||||
Adjusted EBIT tax effected | 995 | ||||||||||||||||
2020 | 2019 | Average | |||||||||||||||
(In $ millions, except percentages) | |||||||||||||||||
Short-term borrowings and current installments of long-term debt - third parties and affiliates
|
496 | 496 | 496 | ||||||||||||||
Long-term debt, net of unamortized deferred financing costs | 3,227 | 3,409 | 3,318 | ||||||||||||||
Celanese Corporation stockholders’ equity | 3,526 | 2,507 | 3,017 | ||||||||||||||
Invested capital | 6,831 | ||||||||||||||||
Return on invested capital (adjusted) | 14.6 | % | |||||||||||||||
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital
|
29.1 | % |
7
|
Exhibit A |
2019 | |||||||||||||||||
(In $ millions,
except percentages) |
|||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 852 | ||||||||||||||||
Adjusted EBIT | 1,476 | ||||||||||||||||
Adjusted effective tax rate | 13 | % | |||||||||||||||
Adjusted EBIT tax effected | 1,284 | ||||||||||||||||
2019 | 2018 | Average | |||||||||||||||
(In $ millions, except percentages) | |||||||||||||||||
Short-term borrowings and current installments of long-term debt - third parties and affiliates
|
496 | 561 | 529 | ||||||||||||||
Long-term debt, net of unamortized deferred financing costs | 3,409 | 2,970 | 3,190 | ||||||||||||||
Celanese Corporation stockholders’ equity | 2,507 | 2,984 | 2,746 | ||||||||||||||
Invested capital | 6,465 | ||||||||||||||||
Return on invested capital (adjusted) | 19.9 | % | |||||||||||||||
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital
|
13.2 | % |
2018 | |||||||||||||||||
(In $ millions,
except percentages) |
|||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 1,207 | ||||||||||||||||
Adjusted EBIT | 1,852 | ||||||||||||||||
Adjusted effective tax rate | 14 | % | |||||||||||||||
Adjusted EBIT tax effected | 1,593 | ||||||||||||||||
2018 | 2017 | Average | |||||||||||||||
(In $ millions, except percentages) | |||||||||||||||||
Short-term borrowings and current installments of long-term debt - third parties and affiliates
|
561 | 326 | 444 | ||||||||||||||
Long-term debt, net of unamortized deferred financing costs | 2,970 | 3,315 | 3,143 | ||||||||||||||
Celanese Corporation stockholders’ equity | 2,984 | 2,887 | 2,936 | ||||||||||||||
Invested capital | 6,523 | ||||||||||||||||
Return on invested capital (adjusted) | 24.4 | % | |||||||||||||||
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital
|
18.5 | % |