Company: APTV
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0000950170-25-036263
Chunk: 17

Company: Aptiv PLC
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 17
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 is reflected in our results shown below.

* Return on net assets in 2023 includes the impacts of the $2.1 billion deferred tax benefit recognized from the Company’s initiation of changes to its corporate entity structure, including intercompany transfers of intellectual property and other related transactions. Excluding the impacts of these transactions, return on net assets was 21.8% in 2023.

Metric Definitions:

Adjusted Net Incomerepresents net income attributable to Aptiv before amortization, restructuring and other special items, including the tax impact thereon.

Adjusted Operating Incomeis defined as net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring and other special items.

Cash Flow Before Financingrepresents cash provided by (used in) operating activities plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions and other transactions, the cost of significant technology investments and net proceeds from the divestiture of discontinued operations and other significant businesses.

Return on Net Assetsis defined as tax-affected operating income (net income before interest expense, other income (expense), net, income tax expense (benefit), equity income (loss), net of tax and gains (losses) on equity method transactions), divided by average net working capital plus average net property, plant and equipment, measured each calendar year; not adjusted for restructuring expenses that are expected to provide future benefit to the Company.

Appendix Acontains a reconciliation of these numbers to U.S. GAAP financial measures.

COMPENSATION DISCUSSION AND ANALYSIS29

CEO REALIZED PAY AND OUR PERFORMANCE

The compensation programs for our named executive officers are heavily weighted toward performance-based opportunities that are at-risk and subject to our performance. Incentive plan metrics are intended to drive results that create value for our shareholders. The chart below illustrates the relationship between Mr. Clark’s target performance-based long-term incentive award opportunity granted in 2022 and the amount he realized based on our performance against the metrics established for the three-year performance period ended December 31, 2024. While our financial performance over the three-year performance period was slightly below target, our stock price performance over the same period, both relative to companies in the Russell 3000 Auto Parts Index and on an absolute basis, had a significant negative impact on how much value Mr. Clark realized from the target opportunity granted to him. This table supplements, but is not a substitute for, the information