The Goodyear Tire & Rubber Company · NASDAQ:GT
The Goodyear Tire & Rubber — Goodyear Tire & Rubber — Shareholder Meeting (April 2021)
19 slides from The Goodyear Tire & Rubber's shareholder meeting presentation, Apr 1, 2021
Slide 1: Supplemental Proxy Materials April 2021
Supplemental Proxy Materials April 2021
Slide 2: Executive Summary
Executive Summary Temporary Executive Compensation Program Changes Due to Impact of COVID-19; Retained Strong Performance Link Goodyear faced a very challenging operating environment in 2020 due to the impact of COVID-19 In July 2020, the Compensation Committee realigned our incentive compensation p
Slide 3: Impact of COVID-19 on Customer Demand
Impact of COVID-19 on Customer Demand Unprecedented decline in industry volume during Q2 OEMs suspended vehicle production Shelter-in-place mandates impacted miles traveled / retail demand Most major consumer tire distributors shuttered their businesses temporarily Limited visibility into full-year
Slide 4: Investor Perspective: Q2 2020
Investor Perspective: Q2 2020 January 2020 June 2020 “...Goodyear will likely burn significant cash…leaving little value for equity even if large cost savings are realized in 2021E. Reflecting this, we lower our price target from $7 to $5…” - Deutsche Bank (May 4, 2020) As a result of industry condi
Slide 5: New Strategic Priorities
New Strategic Priorities Recalibrated priorities around the right metrics for our business The scale of the global shutdown, the severity of the resulting impact on industry volume, and the uncertainty as to its duration required us to shift our business priorities to focus on cash and liquidity whi
Slide 6: Annual Incentive Plan: Original vs Revised Plan for 2H 2020
Original Plan for 2020 Revised Plan for 2H 2020 Rationale / Details Plan Period Jan. 1 – Dec. 31, 2020 July 1 – Dec. 31, 2020 Ensures leadership is focused on and incentivized to take the actions required to minimize the financial impact of the pandemic and position the Company for an accelerated re
Slide 7: Long-Term Incentive Plan: Original vs Revised Plan
Original Plan for 2020 Revised Plan for 2H 2020 Rationale / Details Plan Period Jan. 1 – Dec. 31, 2020 No Change Plan requires a 12-month performance period Plan has annual targets, but awards are earned and vest at end of three-year performance cycle Financial Payout Range Max: 150% Target: 100% Th
Slide 8: New Strategic Priorities: Result
New Strategic Priorities: Result Demonstrated strong operating momentum in Q4 Returned to profitability; Segment Operating Income increased 25% despite lower volume Delivered $70 million of net cost savings Generated Free Cash Flow of $1.2 billion – strongest Q4 performance since 2011 Improved finan
Slide 9: 2020 Incentive Plan Pay Outcomes
2020 Incentive Plan Pay Outcomes The modifications enhanced management’s focus on our pandemic-driven business priorities AIP payout would have been slightly higher under prior program design However, in that scenario, we may not have been as well-positioned to recover from the impacts of the COVID-
Slide 10: Incentive Plan Pay Outcomes: Realized Pay
Incentive Plan Pay Outcomes: Realized Pay In line with our pay for performance philosophy, the realized value of our executives’ compensation responds to our performance and broader market conditions. The following table illustrates the alignment of the Company’s stock price with the CEO’s three-yea
Slide 11: Robust Governance and Shareholder Rights Profile
Robust Governance and Shareholder Rights Profile The Board believes reducing the threshold to call a special meeting is unnecessary given Goodyear’s demonstrated track record of responsiveness to shareholders and the Company’s already strong corporate governance practices and shareholder rights prof
Slide 12: We Request Your Support at Our Annual Meeting
We Request Your Support at Our Annual Meeting For the election of Directors For the advisory vote on executive compensation For the ratification of Goodyear’s independent registered public accounting firm Against the shareholder proposal requesting the reduction of the threshold for shareholders to
Slide 13: Appendix
APPENDIX
Slide 14: Sustainability Framework: Goodyear Better Future
Sustainability Framework: Goodyear Better Future Material topics developed with input from key stakeholders Building a better future to keep the world moving
Slide 15: Inspiring Culture: Diversity & Inclusion
Inspiring Culture: Diversity & Inclusion Goodyear recognizes the critical role of a diverse workforce and an inclusive culture D&I Joint Task Force Established at the request of the Board of Directors in 2020 Provide enhanced oversight and guidance on issues related to D&I Ensure D&I is fully embedd
Slide 16: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation contains historical non-GAAP financial measures, including Total Segment Operating Income and Free Cash Flow, which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed a
Slide 17: Reconciliation for Segment Operating Income
Reconciliation for Segment Operating Income
Slide 18: Reconciliation for Free Cash Flow
Reconciliation for Free Cash Flow
Slide 19: GOODFYEAR.
GOODFYEAR.
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