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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.   )

Filed by the Registrant ☒

Filed by a Party other than the Registrant o

Check the appropriate box:

oPreliminary Proxy Statement
oConfidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
Definitive Proxy Statement
oDefinitive Additional Materials
oSoliciting Material under §240.14a-12
VISTEON CORPORATION
(Name of Registrant as Specified in its Charter)
 
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

   
 
DATE:
WEDNESDAY, JUNE 5, 2019
 
TIME:
11:00 AM EASTERN DAYLIGHT TIME
 
LOCATION:
GRACE LAKE LODGE
 
 
40300 TYLER ROAD
 
 
VAN BUREN TOWNSHIP, MICHIGAN
 

To Visteon Stockholders,

We invite you to attend our 2019 Annual Meeting of Stockholders at the Grace Lake Lodge. At this meeting, you and the other stockholders will be able to vote on the following proposals, together with any other business that may properly come before the meeting:

1.Elect ten directors to the Board of Directors. The Board has nominated for election James J. Barrese, Naomi M. Bergman, Jeffrey D. Jones, Sachin S. Lawande, Joanne M. Maguire, Robert J. Manzo, Francis M. Scricco, David L. Treadwell, Harry J. Wilson, and Rouzbeh Yassini-Fard, all current directors.
2.Ratify the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for fiscal year 2019.
3.Provide advisory approval of the Company’s executive compensation.

You may vote on these proposals in person or by proxy. If you cannot attend the meeting, we urge you to vote by proxy, so that your shares will be represented and voted at the meeting in accordance with your instructions. Instructions on how to vote by proxy are contained in the proxy statement and in the Notice of Internet Availability of Proxy Materials. Only stockholders of record at the close of business on April 12, 2019 will be entitled to vote at the meeting or any adjournment thereof.

If you wish to attend the meeting in person, you will need to RSVP and print your admission ticket at www.proxyvote.com. An admission ticket together with photo identification must be presented in order to be admitted to the meeting. Please refer to page 3 of the proxy statement for further details.

By order of the Board of Directors

Heidi A. Sepanik
Secretary

The accompanying proxy statement is dated April 26, 2019 and, together with the enclosed form of proxy card and Notice of Internet Availability of Proxy Material, is first being mailed to stockholders of Visteon on or about April 26, 2019.

2019 Proxy Statement

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CONTENTS

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019 Proxy Statement

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2019 Proxy Statement

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PROXY SUMMARY

This summary provides highlights of information contained in this proxy statement. It does not contain all of the information that you should consider before voting. We encourage you to read the entire proxy statement. For more complete information regarding the Company’s 2018 performance, please read our 2018 Annual Report. The annual meeting will take place:

Date:
June 5, 2019
Place:
Grace Lake Lodge
Time:
11 a.m. ET
 
40300 Tyler Rd
Van Buren Township, Michigan

Please vote your shares promptly, as this will save the expense of additional proxy solicitation.
You may submit your vote by Internet, telephone, mail or in person.


Visit the website listed on your proxy card/voting instruction form to vote via the Internet.

Call the telephone number on your proxy card/voting instruction form to vote by telephone.

Sign, date and return your proxy card/voting instruction form to vote by mail.

Vote in person at the annual meeting. Owners with shares held through a bank or broker may vote in person at the meeting if they have a legal proxy from the bank or broker and bring it to the meeting.

ITEMS TO BE CONSIDERED & BOARD RECOMMENDATIONS

ITEM
VOTES REQUIRED
FOR APPROVAL
BOARD’S VOTING
RECOMMENDATION
PAGE
REFERENCE
 
 
 
 
 
Item 1
Elect directors
Majority of votes cast
FOR
each nominee
 
 
 
 
 
Item 2
Ratify the appointment of Ernst & Young LLP as our independent auditor for the year ending December 31, 2019
Majority of votes present
FOR
Item 3
Advisory approval of the Company’s executive compensation
Majority of votes present
   
The vote on this item is nonbinding, but the Board will consider the results of the vote in making future decisions.
FOR
This Proxy Statement and our 2018 Annual Report are available electronically on our hosted website at www.proxyvote.com and accessible via the QR code at the right. The Notice and proxy materials are first being made available to our shareholders on or about April 26, 2019.

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DIRECTOR NOMINEES

Upon the recommendation of the Corporate Governance & Nominating Committee, the Board has nominated the following ten director nominees (all of whom are current directors) to be elected at the Annual Meeting of Shareholders. All of the nominees for director are independent under applicable law and stock exchange listing standards, other than Mr. Lawande, who is our Chief Executive Officer. Detailed information about each director nominee, including their background, skills and experience, can be found under “Item 1—Election of Directors”.

NAME
AGE
DIRECTOR
SINCE
INDEPENDENT
PRIMARY OCCUPATION
James J. Barrese
50
2017
X
Former CTO and SVP Payment Services Business of PayPal, Inc.
Naomi M. Bergman
55
2016
X
President of Advance/Newhouse companies
Jeffrey D. Jones
66
2010
X
Attorney, Kim & Chang
Sachin S. Lawande
51
2015
 
CEO and President of Visteon Corporation
Joanne M. Maguire
65
2015
X
Former EVP of Lockheed Martin Corporation
Robert J. Manzo
61
2012
X
Managing Member of RJM 1, LLC
Francis M. Scricco
69
2012
X
Former SVP, Avaya, Inc. and former President and CEO of Arrow Electronics, Inc.
David L. Treadwell
64
2012
X
Former CEO and President of EaglePicher Corporation
Harry J. Wilson
47
2011
X
CEO of MAEVA Group, LLC
Rouzbeh Yassini-Fard
60
2015
X
Founder of YAS Foundation

DIRECTOR DASHBOARD


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VISTEON CORPORATION
One Village Center Drive
Van Buren Township, Michigan 48111

PROXY STATEMENT

April 26, 2019

Introduction

The Board of Directors of Visteon Corporation (“Visteon,” the “Company,” “we,” “us” or “our”) is soliciting your proxy to encourage your participation in the voting at the Annual Meeting of Stockholders. You are invited to attend the Annual Meeting and vote your shares directly. However, even if you do not attend, you may vote by proxy. As shown in the Notice of Annual Meeting, the Annual Meeting will be held on Wednesday, June 5, 2019, at the Grace Lake Lodge in Van Buren Township, Michigan. Directions to the meeting location can be found in Appendix B.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE
ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON JUNE 5, 2019

Our Notice of Annual Meeting and Proxy Statement, Annual Report to Stockholders, electronic proxy card and other Annual Meeting materials are available on the Internet at www.proxyvote.com, together with any amendments to any of these materials that are required to be furnished to stockholders. The Notice of Internet Availability of Proxy Materials contains important information, including instructions on how to access and review the proxy materials online and how to vote your shares over the Internet or by telephone. If you receive a Notice, you will not receive a paper or email copy of the proxy materials unless you request one in the manner set forth in the Notice.

Meeting Admission

To attend the meeting, you will need to bring an admission ticket and photo identification. You will need to print an admission ticket in advance by visiting www.proxyvote.com and following the instructions there. You will need the 12-digit control number to access www.proxyvote.com. You can find your control number on:

Your proxy card included with this proxy statement if it was mailed to you; or

Your voting instruction card if you hold your shares in street name through a broker or other nominee.

If you are not a record date stockholder, you may be admitted to the meeting only if you have a valid legal proxy from a record date stockholder who has obtained an admission ticket. You must present that proxy and admission ticket, as well as valid photo identification, at the entrance to the meeting.

For questions about admission to the Annual Meeting, please contact our Investor Relations department at (734) 710-7893.

Voting

How to Vote Your Shares

If you are a registered stockholder, you can vote at the meeting any shares that were registered in your name as the stockholder of record as of the record date. If your shares are held in “street name” through a broker, bank or other nominee, you are not a holder of record of those shares and cannot vote them at the Annual Meeting unless you have a legal proxy from the holder of record. If you plan to attend and vote your street name shares at the Annual Meeting, you should request a legal proxy from your broker, bank or holder of record and bring it with you to the meeting.

Whether or not you plan to attend the meeting, we strongly encourage you to vote by proxy prior to the meeting. You may vote your shares prior to the meeting by following the instructions provided in the Notice of Internet Availability of Proxy Materials, this proxy statement and the voter website, www.proxyvote.com. If you requested a paper copy of the proxy materials, voting instructions are also contained on the proxy card enclosed with those materials.

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If you are a registered stockholder, there are three ways to vote your shares before the meeting:

By Internet (www.proxyvote.com): Use the Internet to transmit your voting instructions until 11:59 p.m. EDT on June 4, 2019. Have your Notice of Internet Availability of Proxy Materials or proxy card with you when you access the website and follow the instructions to obtain your records and to create an electronic voting instruction form.

By telephone (1-800-690-6903): Use any touch-tone telephone to submit your vote until 11:59 p.m. EDT on June 4, 2019. Have your Notice of Internet Availability of Proxy Materials or proxy card in hand when you call and then follow the instructions you receive from the telephone voting site.

By mail: If you requested a paper copy of the proxy materials, mark, sign and date the proxy card enclosed with those materials and return it in the postage-paid envelope we have provided. To be valid, proxy cards must be received before the start of the Annual Meeting. Proxy cards should be returned to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.

If your shares are held in street name, your broker, bank or other holder of record may provide you with a voting instruction card. Follow the instructions on the card to access our proxy materials and vote online or to request a paper or email copy of our proxy materials. If you received these materials in paper form, the materials included a voting instruction card so you can instruct your broker, bank or other holder of record how to vote your shares.

You should provide voting instructions for all proposals appearing on the proxy/voting instruction card. The persons named as proxies on the proxy card will vote your shares according to your instructions. However, if you do not provide voting instructions with your proxy, then the designated proxies will vote your shares for the election of the nominated directors, for the ratification of the Company’s independent registered public accounting firm, and for the approval of the Company’s executive compensation. If any nominee for election to the Board is unable to serve, which is not anticipated, or if any other matters properly come before the meeting, then the designated proxies will vote your shares in accordance with their best judgment.

How to Revoke Your Proxy

If you are a registered stockholder, you can revoke your proxy and change your vote at any time prior to the Annual Meeting by:

Notifying our Corporate Secretary in writing at One Village Center Drive, Van Buren Township, Michigan 48111 (the notification must be received by the close of business on June 4, 2019);

Voting again by Internet or telephone prior to 11:59 p.m. EDT on June 4, 2019 (only the latest vote you submit will be counted); or

Submitting a new properly signed and dated paper proxy card with a later date (your proxy card must be received before the start of the Annual Meeting).

If your shares are held in street name, you should contact your broker, bank or other holder of record about revoking your voting instructions and changing your vote prior to the meeting.

If you are eligible to vote at the Annual Meeting, you also can revoke your proxy or voting instructions and change your vote at the Annual Meeting by submitting a written ballot before the polls close.

Stockholders Entitled to Vote and Ownership

You are entitled to one vote at the Annual Meeting for each share of the Company’s common stock that you owned of record at the close of business on April 12, 2019. As of April 12, 2019, the Company had issued and outstanding 28,273,189 shares of common stock. Information regarding the holdings of the Company’s stock by directors, executive officers and certain other beneficial owners can be found beginning on page 16.

A list of the stockholders of record entitled to vote at the Annual Meeting will be available for review by any stockholder, for any purpose related to the meeting, between 9:00 a.m. and 5:00 p.m. at the principal offices of the Company, located at One Village Center Drive, Van Buren Township, Michigan 48111, for ten days before the meeting.

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Required Vote to Approve the Proposals

The Company’s Bylaws require that a majority of the Company’s common stock be represented at the Annual Meeting, whether in person or by proxy, for the quorum that is needed to transact any business.

Election of Directors. To be elected, directors must receive a majority of the votes cast (the number of shares voted “For” a director nominee must exceed the number of votes cast “Against” that nominee), except in the event of a contested election. A properly executed proxy marked “Abstain” with respect to such matter will not be counted as votes “For” or “Against” a director, although it will be counted for purposes of determining whether there is a quorum. In the event of a contested election (where the number of nominees exceeds the number of vacancies), the affirmative vote of a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors would be required for the election of directors. A properly executed proxy marked to withhold authority with respect to the election of one or more directors will not be voted with respect to the director or directors indicated, although it will be counted for purposes of determining whether there is a quorum.

Other Proposals. For each proposal other than the election of directors, the affirmative vote of the holders of a majority of the shares represented in person or by proxy and entitled to vote on the item will be required for approval. A properly executed proxy marked “Abstain” with respect to any such matter will not be voted, although it will be counted for purposes of determining whether there is a quorum. Accordingly, an abstention will have the effect of a negative vote.

If you hold your shares in street name through a broker or other nominee and you do not give voting instructions at least ten days before the meeting to your broker or other nominee, then your broker or other nominee may exercise voting discretion only with respect to matters considered to be “routine” by stock exchange rules, such as the ratification of the appointment of the independent registered public accounting firm. On non-routine matters, such as the election of directors and other proposals, the brokers or other nominees cannot vote your shares absent voting instructions from the beneficial holder, resulting in so-called “broker non-votes.” Broker non-votes are not deemed to be votes cast, and as a result have no effect on the outcome of any matters presented, but will be counted in determining whether there is a quorum.

Where to Find Voting Results

The Company will publish the voting results in a Current Report on Form 8-K to be filed with the SEC within four business days after the voting results are known. You will also find the results in the investor information section of the Company’s website at https://investors.visteon.com/sec-filings.

Cost of Solicitation

The Company’s directors, officers and employees may solicit proxies in person or by telephone, mail, email, telecopy or letter. The Company will pay for soliciting these proxies as well as reimburse brokers and other nominees for their reasonable out-of-pocket expenses for forwarding proxy materials to beneficial owners.

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ITEM 1. ELECTION OF DIRECTORS

The first proposal on the agenda for the Annual Meeting will be electing ten directors to hold office until the Annual Meeting of Stockholders to be held in 2020. We expect each nominee for election as a director to be able to serve if elected. If any nominee is not able to serve, proxies will be voted in favor of the remainder of those nominated and may be voted for substitute nominees, unless the Board chooses to reduce the number of directors serving on the Board.

The Company’s Bylaws provide that in any uncontested election (an election in which the number of nominees for director is not greater than the number to be elected), each director shall be elected if the number of votes cast “for” the nominee’s election exceed the number of votes cast “against” that nominee’s election. The Bylaws also provide that any nominee who does not receive more votes cast “for” the nominee’s election than the number of votes cast “against” that nominee in an uncontested election is expected to promptly tender his or her resignation to the Chairman of the Board, which resignation shall be promptly considered through a process managed by the Corporate Governance and Nominating Committee, to determine if a compelling reason exists for concluding that it is in the best interests of the Company for such incumbent to remain a director based on certain factors. The Corporate Governance and Nominating Committee shall provide its recommendation to the Board with respect to any tendered resignation within 14 days of the certification of the election voting results and such recommendation shall be acted on by the Board within 30 days of the certification of the voting results. If a resignation offer is not accepted by the Board, it will publicly disclose its decision, including a summary of reasons for not accepting the offer of resignation. In a contested election (an election in which the number of nominees for director is greater than the number to be elected), the directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Director Nomination Process

The Corporate Governance and Nominating Committee assesses all director candidates, whether submitted by management, a stockholder or otherwise, and recommends nominees for election to the Board. In March 2019, the Corporate Governance and Nominating Committee determined that all incumbent directors wishing to stand for election this year should be re-nominated to stand for election at this Annual Meeting. The key considerations for Board candidates in this process included: specific skills and intellectual capital aligned with the Company’s future strategic and operating plans, strong commitment to increasing shareholder value, core business competencies, including a record of success, financial literacy, a high degree of ethics and integrity, interpersonal skills, enthusiasm, independence and prior board experience. The Board considers diversity to be an important factor in the selection and nomination of director candidates. Although the Board does not establish specific goals with respect to diversity, the Board’s overall diversity is a significant consideration in the nomination process. This process resulted in selecting a Board that would have a diversity of international perspectives and technology expertise in light of the Company’s global cockpit electronics and autonomous driving business. The current nominees range in age from forty-seven to sixty-nine, two are female, one resides outside of the United States, and the average tenure of the directors on the Board is 4.8 years.

The Board concurred with the recommendations of the Corporate Governance and Nominating Committee. The specific experiences, qualifications and skills that were considered in their initial selection, and considered by the Board in their nomination, are included in the matrix below and after each of the individual biographies. All the nominees are current directors who have been elected by stockholders at the last annual meeting of stockholders.

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Summary of Qualifications of Director Nominees

The following table highlights the specific skills, experience, qualifications and attributes that each of the director nominees brings to the Board. A particular director may possess other skills, experience, qualifications or attributes even though they are not indicated below.

Visteon Board of Directors
 
Barrese
Bergman
Jones
Lawande
Maguire
Manzo
Scricco
Treadwell
Wilson
Yassini
Skills & Experience
 
 
 
 
 
 
 
 
 
 
Public Company Board Experience
X
X
X
X
X
X
X
X
X
X
Automotive Industry Experience
 
 
X
X
 
X
 
X
X
X
Senior Leadership Experience
X
X
X
X
X
X
X
X
X
X
International Business Experience
X
 
X
X
X
 
X
X
X
X
Financial Literacy
X
X
 
X
X
X
X
X
X
 
Technology/Systems Expertise
X
X
 
X
X
 
 
 
 
X
Marketing/Sales Experience
 
X
 
X
 
 
X
X
X
X
Academic/Research Experience
X
 
 
 
X
 
 
 
 
X
Military Service
X
 
 
 
 
 
 
 
 
 
Government/Public Policy Expertise
 
 
X
 
X
 
 
 
X
 
Demographic Background
 
 
 
 
 
 
 
 
 
 
Visteon Board Tenure (Years)
2
2
8
3
4
6
6
6
7
4
Male (M)/ Female (F)
M
F
M
M
F
M
M
M
M
M
Age
50
55
66
51
65
61
69
64
47
60

Nominees for Directors

James J. Barrese is 50 years old. He has been a director of Visteon since January 2, 2017. Mr. Barrese is the former Chief Technology Officer and Senior Vice President, Payment Services Business of Paypal, Inc., a digital and mobile payments company, a position he held from February 2015 to June 2016. Prior to that he was Paypal’s Chief Technology Officer from February 2012 to January 2015 and Vice President of Global Product Development from August 2011 to January 2012. Mr. Barrese spent nearly 10 years in executive technology roles at eBay, Inc., he served as Vice President of engineering at Charitableway.com, Inc., was a manager at Andersen Consulting, Inc. and a programmer in the Materials Science Department at Stanford University. He is also a veteran of the U.S. military. Mr. Barrese is the owner of the consulting company Altos Group and he currently also serves on the boards of Merrill Corporation and Idemia. During the past five years, Mr. Barrese also served on the board of Marin Software.

Mr. Barrese has a deep knowledge of digital transformation, technology strategy, architecture, analytics and cloud computing.

Naomi M. Bergman is 55 years old. She has been a director of Visteon since October 1, 2016. Ms. Bergman is a senior executive officer of Advance/Newhouse companies, a multimedia company, a position she has held since May 2016. Prior to that, she served as President of Bright House Networks, LLC, a cable service provider, from 2007 to 2016. Ms. Bergman currently serves on the boards of privately-held companies 1010data, Black & Veatch, and Mediamorph. Ms. Bergman also serves on the Federal Communications Commission Technical Advisory Committee, the Board of Trustees for the University of Rochester, and she is a board member of non-profit organizations The Cable Center, Adaptive Spirit and One Revolution. During the past five years, she also served on the board of CableOne, Inc.

Ms. Bergman brings to the Board her experience and expertise in technology and operations from her experiences in the cable and telecommunications industry.

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Jeffrey D. Jones is 66 years old and he has been a director of Visteon since October 1, 2010. Mr. Jones is an attorney with Kim & Chang, a South Korea-based law firm, a position he has held since 1980. Mr. Jones serves as Chairman of the Board of Partners for Future Foundation and Ronald McDonald House Charities of Korea, both Korean non-profit foundations.

Mr. Jones has over thirty years of international legal experience, with particular focus on Asia. He has served on the boards of multinational companies and has been active in civic and charitable activities. He has served as chairman of the American Chamber of Commerce in Korea, as an advisor to several organizations and government agencies in Korea, and as a recognized member of the Korean Regulatory Reform Commission.

Sachin S. Lawande is 51 years old and has been Visteon’s Chief Executive Officer, President and a director of the Company since June 29, 2015. Before joining Visteon, Mr. Lawande served as Executive Vice President and President, Infotainment Division of Harman International Industries, Inc., an automotive supplier, from July 2013 to June 2015. From July 2011 to June 2013, he served as Executive Vice President and President of Harman’s Lifestyle Division, and from July 2010 to June 2011 as Executive Vice President and Co-President, Automotive Division. Prior to that he served as Harman’s Executive Vice President and Chief Technology Officer since February 2009. Mr. Lawande joined Harman International in 2006, following senior roles at QNX Software Systems and 3Com Corporation. He also serves on the board of directors of DXC Technology Company.

Mr. Lawande has extensive experience in the automotive industry, including leadership roles with a global automotive components supplier. He also has deep experience with the technology sector.

Joanne M. Maguire is 65 years old and has been a Director of Visteon since January 6, 2015. Ms. Maguire served as an Executive Vice President of Lockheed Martin Corporation and President of its Space Systems Company, a provider of advanced-technology systems for national security, civil and commercial customers, from July 2006 until she retired in May 2013. Ms. Maguire joined Lockheed Martin in 2003, following 28 years of employment at TRW’s Space & Electronics sector. Throughout her career, she has held senior leadership roles in program management, engineering, advanced technology, manufacturing, and business development. Ms. Maguire also serves on the board of directors of CommScope Holdings Company, Inc. and Tetra Tech, Inc. as well as Charles Stark Draper Laboratory, Inc., a non-profit research and development organization. Within the past five years, she also served on the board of Freescale Semiconductor, Inc.

Ms. Maguire has extensive experience in the technology sector, including senior leadership positions with a publicly traded company, executive responsibility for operations and profitability, and board service on multiple high tech corporations.

Robert J. Manzo is 61 years old and he has been a director of Visteon since June 14, 2012. Mr. Manzo is the founder and managing member of RJM I, LLC, a provider of consulting services to troubled companies, a position he has held since 2005. From 2000 to 2005, Mr. Manzo was a senior managing director of FTI Consulting, Inc., a global business advisory firm. He also serves on the board of directors of ADVANZ PHARMA Corp.

Mr. Manzo has extensive experience advising companies and management in the automotive and other industries, and possesses financial and accounting expertise.

Francis M. Scricco is 69 years old. He was appointed Visteon’s non-Executive Chairman of the Board on September 30, 2012, and has been a director of Visteon since August 10, 2012. Mr. Scricco is the former Senior Vice President, Manufacturing, Logistics and Procurement of Avaya, Inc., a global business communications provider, a position he held from February 2007 until his retirement in October 2008. Prior to that he was Avaya’s Senior Vice President, Global Services since March 2004. Prior to joining Avaya, Inc., Mr. Scricco was employed by Arrow Electronics as its Chief Operating Officer from 1997 to 2000, and as its President and Chief Executive Officer from 2000 to 2002. His first operating role was as a general manager for General Electric. Mr. Scricco began his career with the Boston Consulting Group in 1973. Mr. Scricco currently also serves on the board of Masonite International Corporation as well as Transportation Insight, LLC, a privately held company. Within the last five years, he also served on the board of directors of Tembec, Inc.

Mr. Scricco has extensive global business leadership experience, including public company board service. Mr. Scricco has spent more than twenty-five years as a senior P&L manager in six different industries. His P&L experience ranges from CEO of a venture capital technology start-up to CEO of a $13 billion publicly traded Fortune 200 company.

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David L. Treadwell is 64 years old and he has been a director of Visteon since August 10, 2012. Mr. Treadwell currently serves on the boards of Flagstar Bank and U.S. Well Services, Inc. which are publicly traded on U.S. stock exchanges. Mr. Treadwell also serves as Chairman of Tweedle Group, provider of automotive owner manuals/information, since September 2018; on the board of Sungard Availability Services, IT data center and disaster recovery services provider, since February 2018; as Chairman of Grow Michigan, LLC, a $30 million mezzanine debt fund targeted at promoting economic growth in Michigan’s small business community; as Chairman of AGY, LLC, a producer of high tech glass fiber for a variety of global applications, since July 2013; and since March 2016 as Chairman of WinCup LLC, a $300 million foam cup manufacturer. Mr. Treadwell served as President and CEO of EP Management Corporation, formerly known as EaglePicher Corporation, from August 2006 to September 2011. Mr. Treadwell was EaglePicher’s chief operating officer from June 2005 to July 2006. Prior to that, he served as Oxford Automotive’s CEO from 2004 to 2005. During the past five years, Mr. Treadwell has also served on the board of directors of C & D Technologies, FairPoint Communications Inc. and Revere Industries.

Mr. Treadwell has extensive experience advising and leading companies in the automotive and other industries.

Harry J. Wilson is 47 years old and he has been a Director of Visteon since July 28, 2011. He is the Chief Executive Officer of MAEVA Group, LLC, a turnaround and restructuring boutique which he founded in January 2011. Prior to that, he served as a Senior Advisor on the President’s Automotive Task Force from March 2009 to August 2009, and he was a Partner at Silver Point Capital, a credit oriented investment fund, where he joined as a Senior Analyst in May 2003 and served until August 2008. Mr. Wilson serves on the following non-public boards of directors: Youth, INC, Scarsdale Maroon & White, The Hellenic Initiative, and is Chairman of Save Our States and the Save Our States Action Fund and Co-Chair of MAEVA Social Capital, Inc. Mr. Wilson also serves on the board of Sotheby’s and Horizon Global Corporation.

Mr. Wilson has extensive financial and transactional expertise and significant public company, automotive industry experience.

Rouzbeh Yassini-Fard is 60 years old and has been a Director of Visteon since January 5, 2015. He is the founder of YAS Foundation, a nonprofit organization dedicated to enabling future generations with leadership skills in education, culture, and humanity. He also is the Executive Director of the University of New Hampshire’s Broadband Center of Excellence, specializing in the advancement of Broadband Internet Technology. A serial entrepreneur, he is the author of “Planet Broadband”, a history of broadband in its formative years. Mr. Yassini-Fard is known as the “father of the cable modem” for his pioneering work in broadband technology and in work leading to the creation of the cable industry’s global standards. He has previously served on the boards of LANcity, Arepa, NARAD, Broadband Access Systems, TrueChat, YAS Corp., and Entropic Communications.

Mr. Yassini-Fard has extensive executive business experience, focusing on the technology sector to further the advancement of broadband Internet technology and services to attain ubiquitous connectivity worldwide. He holds multiple patents.

The Board of Directors Recommends that You Vote FOR the Election of James J. Barrese, Naomi M. Bergman, Jeffrey D. Jones, Sachin S. Lawande, Joanne M. Maguire, Robert J. Manzo, Francis M. Scricco, David L. Treadwell, Harry J. Wilson, and Rouzbeh Yassini-Fard as Directors.

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CORPORATE GOVERNANCE

Highlights

The Company believes good governance is a critical element to achieving long-term shareholder value. We are committed to governance policies and practices that serve the long-term interests of the Company and its shareholders, employees and stakeholders. The following table summarizes certain highlights of our corporate governance practices and policies:

Annual election of all directors
Majority voting for directors
90% of Board is independent
Independent Board Chair
Board Chair and Chief Executive Officer roles separated
All Board Committees composed entirely of independent directors
Proxy access right granted to shareholders
Annual Board and committee evaluations
Executive sessions of independent directors held at each regularly scheduled in-person Board meeting
Commitment to corporate social responsibility
Share ownership guidelines for directors and executives
 
 

Corporate Governance Guidelines

The Board has adopted Corporate Governance Guidelines to define the role of the Board, its structure and composition, as well as set forth principles regarding director commitment expectations and compensation. The guidelines also limit the number of other boards a director may serve on and the maximum age of directors.

Board Leadership Structure

After considering evolving governance practices and its current profile, since September 2012, the Board has separated the positions of Chairman and Chief Executive Officer by appointing a non-executive Chairman. The non-executive Chairman serves in a lead capacity to coordinate the activities of the other outside directors and to perform the duties and responsibilities as the Board of Directors may determine from time to time. Currently, these responsibilities include:

To preside at all meetings of shareholders;
To convene and preside at all meetings of the Board, including executive sessions of the independent directors;
Develop, with the assistance of the Chief Executive Officer (the “CEO”), the agenda for all Board meetings;
Collaborate with the CEO, committee Chairs, and other directors to establish meeting schedules, agendas, and materials in order to ensure that all directors can perform their duties responsibly and that there is sufficient time for discussion of all agenda items;
Advise the CEO on the quantity, quality, and timeliness of information delivered by management to the Board and provide input so that directors can effectively and responsibly perform their duties;
Counsel the CEO on issues of interest or concern to directors and encourage all directors to engage the CEO with their interests and concerns;
Serve as a liaison on Board-related issues between directors and the CEO and management although directors maintain the right to communicate directly with the CEO or any member of management on any matter;
Assist the Board and the Company’s officers in assuring compliance with and implementation of the Company’s Corporate Governance Guidelines;
Work in conjunction with the Corporate Governance and Nominating Committee to recommend revisions, as appropriate, to the Corporate Governance Guidelines;
Make recommendations to the Board concerning the retention of counsel and consultants who report directly to the Board on board matters (as opposed to committee counsel or consultants);
Work with the Chair of each committee during the annual review of committee charters and work with the Chair of the Corporate Governance and Nominating Committee with respect to committee assignments and the recruitment and selection of new Board members;
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Represent the Board in shareholder engagement meetings and similar activities with other stakeholders, serve as a focal point for shareholder communications addressed to directors, and advise the CEO of the timing and substance of such communications; in each case as approved by the Board;
Convene special meetings of the Company’s shareholders consistent with the terms of the Company’s Bylaws from time to time in effect; and
Help set the tone for the highest standards of ethics and integrity.

The Board believes that a non-executive Chairman can help provide effective, independent Board leadership.

Board Risk Oversight

The Board believes that its primary responsibility is to oversee the business and affairs of the Company for the protection and enhancement of shareholder value, which includes assessing major risks facing the Company and options for mitigating these risks. The committees help the Board carry out this responsibility by focusing on specific key areas of risk inherent in our business.

The Audit Committee oversees risks associated with financial and accounting matters, including compliance with legal and regulatory requirements, cybersecurity, and the Company’s financial reporting and internal control systems.
The Corporate Governance and Nominating Committee oversees risks associated with corporate governance, including Board structure and director succession planning.
The Organization and Compensation Committee helps ensure that the Company’s compensation policies and practices support the retention and development of executive talent with the experience required to manage risks inherent to the business and do not encourage or reward excessive risk-taking by our executives.
The Finance and Corporate Strategy Committee oversees risks associated with financial instruments, financial policies and strategies, and capital structure.

The Board receives regular updates from the committees about their activities in this regard. The Company’s enterprise risk management approach utilizes an annual risk assessment consisting of management level employee interviews and surveys which identify changes to the Company’s risk exposure and overall risk environment as it relates to cybersecurity, financial, compliance, operational and strategic risk areas. The results of management’s review are reported to the Board as appropriate by the chief executive officer, chief financial officer and/or general counsel.

Director Independence

The Corporate Governance Guidelines adopted by the Board of Directors provide that a majority of the members of the Board, and each member of the Audit, Organization and Compensation, Corporate Governance and Nominating, Finance and Corporate Strategy, and Technology Committees, must meet the independence criteria of applicable law and stock exchange listing standards. For a director to be considered independent, the Board must determine that the director does not have any direct or indirect material relationship with the Company. To assist it in determining director independence, the Board of Directors has adopted the Visteon Director Independence Guidelines. The Visteon Director Independence Guidelines contain categorical standards of independence which conform to, or are more exacting than applicable law and stock exchange listing standards. In addition to applying its guidelines, the Board will consider all relevant facts and circumstances that it is aware of in making an independence determination.

The Board undertook its annual review of director independence in March 2019, and, based on the listing standards of the Nasdaq Stock Market and the Visteon Director Independence Guidelines, the Board has affirmatively determined that all of the non-employee directors, namely Ms. Bergman, Ms. Maguire and Messrs. Barrese, Jones, Manzo, Scricco, Treadwell, Wilson, and Yassini-Fard, are independent. None of these non-employee directors currently has any relationship with the Company (other than as a director or stockholder). Mr. Lawande is not independent due to his employment as a senior executive of the Company.

Meetings and Executive Sessions

During 2018, the Board of Directors held nine (9) regularly scheduled and special meetings and took action by written consent two (2) times in lieu of a meeting. Under the Company’s Corporate Governance Guidelines, directors are expected to attend all scheduled Board and committee meetings as well as the Company’s Annual Meeting of

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Stockholders. No director attended less than 75% of the aggregate number of meetings of the Board and Board committees on which he or she served during 2018. All current directors who were also on the Board at the time of such meeting attended the last Annual Meeting of stockholders in 2018.

Pursuant to the Corporate Governance Guidelines, the non-employee directors meet without management at the end of every regularly scheduled Board meeting. The presiding director at these meetings is the non-executive Chairman or if there be none, the most tenured independent director in attendance.

Board Committees

The Board has established five standing committees. The principal functions of each committee are briefly described on the following pages. Additional special committees under the direction of the Board may be established when necessary to address specific issues.

Audit Committee

The Board has a standing Audit Committee, currently consisting of Robert J. Manzo (Chair), Naomi M. Bergman and David L. Treadwell, all of whom are considered independent under the rules and regulations of the Securities and Exchange Commission, the Nasdaq Stock Market listing standards and the Visteon Director Independence Guidelines. The Board has determined that each of the current members of the Audit Committee has “accounting and related financial management expertise” within the meaning of the listing standards of the Nasdaq Stock Market, and that Messrs. Manzo and Treadwell are each qualified as an “audit committee financial expert” within the meaning of the rules and regulations of the Securities and Exchange Commission. During 2018, the Audit Committee held six (6) regularly scheduled and special meetings. The duties of the Audit Committee are generally:

to select and evaluate the independent registered public accounting firm;
to approve all audit and non-audit engagement fees and terms;
to review the activities and the reports of the Company’s independent registered public accounting firm;
to review internal controls, accounting practices, financial structure and financial reporting, including the results of the annual audit and review of interim financial statements;
to review and monitor compliance procedures; and
to report the results of its review to the Board.

The charter of the Audit Committee, as well as any future revisions to such charter, is available on the Company’s website at https://www.visteon.com/company/about-us/corporate-governance/. The Audit Committee Report can be found beginning on page 44.

Organization and Compensation Committee

The Board also has a standing Organization and Compensation Committee, consisting of David L. Treadwell (Chair), Jeffrey D. Jones and Harry J. Wilson, all of whom are considered independent under the Nasdaq Stock Market listing standards and the Visteon Director Independence Guidelines. During 2018, the Organization and Compensation Committee held six (6) regularly scheduled and special meetings, and took action by written consent two (2) times in lieu of a meeting. The Organization and Compensation Committee oversees the Company’s programs for compensating executive officers and other key management employees, including the administration of the Company’s stock-based compensation plans, and approves the salaries, bonuses and other awards to executive officers. Other duties of the Organization and Compensation Committee are generally:

to review and approve corporate goals and objectives relative to the compensation of the Chief Executive Officer, evaluate the Chief Executive Officer’s performance and set the Chief Executive Officer’s compensation level based on this evaluation;
to review and approve executive compensation and incentive plans;
to approve the payment of cash performance bonuses and the granting of stock-based awards to the Company’s employees, including officers; and
to review and recommend management development and succession planning.

The charter of the Organization and Compensation Committee, as well as any future revisions to such charter, is available on the Company’s website at https://www.visteon.com/company/about-us/corporate-governance/.

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The Chief Executive Officer of the Company, with the consultation of the Chief Human Resources Officer, provides recommendations to the committee on the amount and forms of executive compensation, and assists in the preparation of Committee meeting agendas. Pursuant to the Company’s 2010 Incentive Plan as amended, the Committee may delegate its power and duties under such plan to a committee consisting of two or more officers of the Company except in respect of individuals subject to the reporting or liability provisions of Section 16 of the Securities Exchange Act of 1934, as amended. The Committee has authorized the Chief Human Resources Officer, together with the concurrence of either of the Chief Financial Officer or the General Counsel, to approve awards of up to 5,000 shares of restricted stock, restricted stock units and/or performance stock units (subject to an annual limit of 50,000 shares of restricted stock, restricted stock units and/or performance stock units) and up to 10,000 stock options and/or stock appreciation rights (subject to an annual limit of 100,000 stock options and/or stock appreciation rights ) to individuals the Company desires to hire or retain, except any individual who is or upon commencing employment will be subject to the liability provisions of Section 16 of the Securities Exchange Act of 1934, as amended.

The Committee has the authority to retain, approve the fees and other terms of, and terminate any compensation consultant, outside counsel or other advisors to assist the committee in fulfilling its duties. During 2018, the Committee retained the firm of Frederic W. Cook & Co., Inc., an executive compensation consulting firm, to advise the Committee on competitive market practices and trends as well as on specific executive and director compensation matters as requested by the Committee or the Board. The Company maintains no other significant direct or indirect business relationships with this firm, and no conflict of interest with respect to such firm was identified.

Corporate Governance and Nominating Committee

The Board also has a standing Corporate Governance and Nominating Committee, consisting of Robert J. Manzo (Chair), Joanne M. Maguire, and Rouzbeh Yassini-Fard, all of whom are considered independent under the Nasdaq Stock Market listing standards and the Visteon Director Independence Guidelines. During 2018, the Corporate Governance and Nominating Committee held three (3) regularly scheduled and special meetings. The duties of the Corporate Governance and Nominating Committee are generally:

to develop corporate governance principles and monitor compliance therewith;
to review the performance of the Board as a whole;
to review and recommend to the Board compensation for outside directors;
to develop criteria for Board membership;
to identify, review and recommend director candidates; and
to review and monitor certain environmental, safety and health matters.

The charter of the Corporate Governance and Nominating Committee, as well as any future revisions to such charter, is available on the Company’s website at https://www.visteon.com/company/about-us/corporate-governance/.

The Corporate Governance and Nominating Committee has the authority to retain consultants to assist the Committee in fulfilling its duties with director recruitment and compensation matters. During 2018, the Corporate Governance and Nominating Committee retained the firm of Frederic W. Cook & Co., Inc. to advise the Committee on competitive market practices and trends for outside director compensation.

Finance and Corporate Strategy Committee

The Board has a standing Finance and Corporate Strategy Committee, consisting of Harry J. Wilson (Chair), Jeffrey D. Jones, and Rouzbeh Yassnin-Fard, all of whom are considered independent under the Nasdaq Stock Market listing standards and the Visteon Director Independence Guidelines. During 2018, the Finance and Corporate Strategy Committee held four (4) regularly scheduled and special meetings. The duties of the Finance and Corporate Strategy Committee generally are:

to review and make recommendations to the Board regarding the Company’s cash flow, capital expenditures and financing requirements;
to review the Company’s policies with respect to financial risk assessment and management including investment strategies and guidelines;
to review and make recommendations on mergers, acquisitions and other major financial transactions requiring Board approval;
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to consider and recommend to the Board stock sales, repurchases or splits, as appropriate, and any changes in dividend policy; and
to evaluate bona fide proposals in respect of major acquisitions, dispositions, mergers and other transactions for recommendation to the Board.

The charter of the Finance and Corporate Strategy Committee, as well as any future revisions to such charter, is available on the Company’s website at https://www.visteon.com/company/about-us/corporate-governance/.

Technology Committee

The Board has a standing Technology Committee. The current members are Rouzbeh Yassini-Fard (Chair), James J. Barrese, Naomi M. Bergman, and Joanne M. Maguire, all of whom are considered independent under the Nasdaq Stock Market listing standards and the Visteon Director Independence Guidelines. During 2018, the Technology Committee held three (3) regularly scheduled meetings. The duties of the Technology Committee generally are:

to review and comment on new product technology strategies as developed by the Company;
to review and make recommendations to the Board regarding the technology budget, assess major investments in new technology platforms, partnerships and alliances; and
to monitor and evaluate existing and future trends in technology that may affect the Company’s strategic plans, including overall trends in the automotive industry.

The charter of the Technology Committee, as well as any future revisions to such charter, is available on the Company’s website at https://www.visteon.com/company/about-us/corporate-governance/.

Code of Ethics

The Company has adopted a code of ethics, as is defined in Item 406 of Regulation S-K that applies to all directors, officers and employees of the Company and its subsidiaries, including the Chief Executive Officer, the Chief Financial Officer and the Chief Accounting Officer. The code, entitled “Ethics and Integrity Policy,” is available on the Company’s website at https://www.visteon.com/company/policies-compliance/.

Corporate Social Responsibility

The Company and its Board of Directors believe that a commitment to positive environmental, social and governance-related business practices strengthens our company, increases our connection with our shareholders and helps us better serve our customers and the communities in which we operate. Our commitment to social responsibility extends to the environment, anti-corruption and trade compliance, responsible sourcing, human rights, labor practices, and worker health and safety. Additional information about Visteon’s corporate social responsibility efforts is available on our website at https://www.visteon.com/company/sustainability/.

Communications with the Board of Directors

Stockholders and other persons interested in communicating directly with the Chairman of the Board, a committee chairperson or with the non-management directors as a group may do so as described on the Company’s website at https://investors.visteon.com/investor-contact, or by writing to the chairperson or non-management directors of Visteon Corporation c/o of the Corporate Secretary, One Village Center Drive, Van Buren Township, Michigan 48111.

The Corporate Governance and Nominating Committee also welcomes stockholder recommendations of director candidates. Stockholders may suggest candidates for the consideration of the committee by submitting their suggestions in writing to the Company’s Secretary, including the agreement of the nominee to serve as a director. In addition, the Company’s Bylaws contain a procedure for the direct nomination of director candidates by stockholders (see page 46), and any such nomination will also be automatically submitted to the Corporate Governance and Nominating Committee for consideration.

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DIRECTOR COMPENSATION

The table below summarizes the compensation paid by the Company to non-employee directors for the fiscal year ended December 31, 2018. Directors who are employees of the Company receive no additional compensation for serving on the board.

Name
Fees Earned or
Paid in Cash
($)(1)
Stock Awards
($)(2)
All Other
Compensation
($)
Total
($)
James J. Barrese
 
95,000
 
 
105,000
 
 
 
 
200,000
 
Naomi M. Bergman
 
105,000
 
 
105,000
 
 
 
 
210,000
 
Jeffrey D. Jones
 
95,000
 
 
105,000
 
 
 
 
200,000
 
Joanne M. Maguire
 
95,000
 
 
105,000
 
 
 
 
200,000
 
Robert J. Manzo
 
130,000
 
 
105,000
 
 
 
 
235,000
 
Francis M. Scricco
 
95,000
 
 
255,000
 
 
 
 
350,000
 
David L. Treadwell
 
115,000
 
 
105,000
 
 
 
 
220,000
 
Harry J. Wilson
 
105,000
 
 
105,000
 
 
 
 
210,000
 
Rouzbeh Yassini-Fard
 
105,000
 
 
105,000
 
 
 
 
210,000
 
(1)The following directors deferred 2018 cash compensation into their deferred unit account under the Deferred Compensation Plan for Non-Employee Directors (further described below):
Name
2018 Cash
Deferred
Ms. Bergman
$
105,000
 
Mr. Yassini-Fard
$
105,000
 
(2)As of December 31, 2018, and pursuant to the Visteon Corporation Non-Employee Director Stock Unit Plan (described further below), Mr. Barrese owned 2,430 stock units, Ms. Bergman owned 2,878 stock units, Ms. Maguire and Messrs. Jones, Manzo, Scricco, Treadwell, Wilson and Yassini-Fard each owned 4,895 stock units. Mr. Scricco also owned 8,473 stock units and Messrs. Jones and Manzo each owned 1,481 stock units granted pursuant to the 2010 Incentive Plan.

All non-employee directors currently receive an annual cash retainer of $95,000. Committee chairs, except for the Chair of the Audit Committee, and Audit Committee members receive an additional annual committee retainer of $10,000. The Chair of the Audit Committee and the Lead Independent Director, if any, received an additional annual retainer of $15,000. All retainers are paid in quarterly installments. In addition, the Company reimburses its directors for expenses, including travel and entertainment, they incur in connection with attending board and committee meetings as well as other company-requested activities.

Non-employee directors may elect to defer up to 100% of their total retainer and any cash payments under the Deferred Compensation Plan for Non-Employee Directors, a nonqualified benefit plan, into a unit account. The amounts deferred into the unit account are allocated based on the average of the high and low price of the Company’s common stock on the date of the deferral, and the value of this account is directly related to the performance of the Company’s common stock. All amounts deferred are distributed following termination of board service in a lump sum or in ten annual installments on the later of January 15th of the year following or six months after the date of termination of service or upon a change in control.

The Company’s Non-Employee Director Stock Unit Plan provides for an annual grant to each non-employee director of stock units valued at $105,000 on the day following the Company’s annual meeting. Amounts are allocated to the unit accounts based on the average of the high and low price of the Company’s common stock on the date of award, and the value of this account is directly related to the performance of the Company’s common stock. Amounts attributed to a director’s unit account under the Non-Employee Director Stock Unit Plan will not be distributed until after termination of his or her board service, either in a lump sum or in ten annual installments on the later of January 15th of the year following or six months after the date of termination of service or upon a change in control. In 2018, the non-Executive Chairman of the Board received a restricted stock unit award valued at $150,000 under the 2010 Incentive Plan with terms similar to awards under the Non-Employee Director Stock Unit Plan.

As noted above, stock units held under the Non-Employee Director Stock Unit Plan and the Deferred Compensation Plan for Non-Employee Directors cannot be sold or transferred during a director’s service on the Company’s board. The Company believes that this restriction best links director and stockholder interests. The Company’s current stock ownership guidelines also require non-employee directors to hold all their equity-based awards received from the Company until termination of board service.

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following contains information regarding the stock ownership of the Company’s directors and executive officers and the beneficial owners of more than five percent of the Company’s voting securities.

Ownership of the Company’s common stock is shown in terms of “beneficial ownership.” A person generally “beneficially owns” shares if he or she has either the right to vote those shares or dispose of them, and more than one person may be considered to beneficially own the same shares.

In this proxy statement, unless otherwise noted, a person has sole voting and dispositive power for those shares shown as beneficially owned by him or her. The percentages shown in this proxy statement compare the person’s beneficially owned shares with the total number of shares of the Company’s common stock outstanding on April 2, 2019 (28,273,080 shares).

Directors and Executive Officers

The following table contains stockholding information for the Company’s directors and executive officers, as well as stock units credited to their accounts under various compensation and benefit plans as of April 2, 2019. No shares have been pledged as collateral for loans or other obligations by any director or executive officer listed below.

 
Common Stock
Beneficially Owned
Stock
Units(2)(3)
Name
Number(1)
Percent of
Outstanding
Sachin S. Lawande
 
170,690
 
 
*
 
 
30,743
 
James J. Barrese
 
 
 
*
 
 
2,430
 
Naomi M. Bergman
 
1,000
 
 
*
 
 
5,921
 
Jeffery D. Jones
 
 
 
*
 
 
6,376
 
Joanne M. Maguire
 
 
 
*
 
 
4,895
 
Robert J. Manzo
 
6,000
 
 
*
 
 
6,376
 
Francis M. Scricco
 
7,150
 
 
*
 
 
13,368
 
David L. Treadwell
 
4,000
 
 
*
 
 
4,895
 
Harry J. Wilson
 
10,000
 
 
*
 
 
5,611
 
Rouzbeh Yassini-Fard
 
2,000
 
 
*
 
 
7,565
 
Christian A. Garcia
 
21,494
 
 
*
 
 
18,659
 
Sunil K. Bilolikar
 
9,828
 
 
*
 
 
7,130
 
Brett D. Pynnonen
 
10,316
 
 
*
 
 
3,834
 
Robert R. Vallance
 
12,612
 
 
*
 
 
12,535
 
All executive officers and directors as a group (17 persons)
 
269,765
 
 
*
 
 
144,397
 
*Less than 1%.
(1)Includes shares of common stock which the following executive officers had a right to acquire ownership of pursuant to stock options or stock appreciation rights granted by the Company and exercisable on or within 60 days after April 2, 2019: Mr. Lawande (80,167 shares), Mr. Garcia (16,374 shares), Mr. Bilolikar (6,084 shares), Mr. Pynnonen (6,476 shares) and Mr. Vallance (6,063 shares).
(2)For non-employee directors, the amounts shown include stock units credited under the Deferred Compensation Plan for Non-Employee Directors, the Non-Employee Director Stock Unit Plan and the Visteon Corporation 2010 Incentive Plan, and are payable following termination of Board service in cash or shares of common stock at the election of the Company, or in cash upon a change in control.
(3)Includes restricted stock units granted to executive officers under the Visteon Corporation 2010 Incentive Plan, which are payable upon vesting in shares of common stock or cash at the election of the Company.
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Other Beneficial Owners

The Company believes that the following table is an accurate representation of beneficial owners of more than 5% of any class of the Company’s voting securities as of April 2, 2019. The table is based upon reports on Schedules 13G and 13D and Forms 4 filed with the SEC or other information believed to be reliable.

Title of Class
Name and Address of Beneficial Owner
Amount and Nature of
Ownership
Percent
of
Class
Common Stock
T. Rowe Price Associates, Inc.
100 E. Pratt Street
Baltimore, Maryland 21202
4,545,182 total aggregate shares
(1,241,424 shares held with sole
voting power and 4,545,182
shares held with sole dispositive
power)
 
15.7
%
Common Stock
Iridian Asset Management LLC
276 Post Road West
Westport, Connecticut 06880
2,974,185 total aggregate shares
(2,974,185 shares held with
shared voting and dispositive
power)
 
10.3
%
Common Stock
Janus Henderson Group plc
201 Bishopsgate
United Kingdom EC2M 3AE
2,875,011 total aggregate shares
(2,875,011 shares held with shared
voting and dispositive power)
 
10.2
%
Common Stock
The Vanguard Group
100 Vanguard Boulevard
Malvern, Pennsylvania 19355
2,788,395 total aggregate shares
(14,915 shares held with sole
voting power, 4,221 shares with
shared voting power; 2,771,937
shares held with sole dispositive
power, and 16,458 shares held with
shared dispositive power)
 
9.64
%
Common Stock
Blackrock, Inc.
55 East 52nd Street
New York, New York 10055
2,598,123 total aggregate shares
(2,464,453 shares held with sole
voting power and 2,598,123 shares
held with sole dispositive power)
 
9.0
%
Common Stock
The Bank of New York Mellon Corporation
225 Liberty Street
New York, New York 10286
1,677,769 total aggregate shares
(1,457,098 shares held with sole
voting power, 3,837 shares with
shared voting power; 1,629,042
shares held with sole dispositive
power, and 29,492 shares held with
shared dispositive power)
 
5.8
%

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the Company’s executive officers, directors and greater than 10% stockholders to file certain reports (“Section 16 Reports”) with respect to their beneficial ownership of the Company’s equity securities. Based solely on a review of copies of reports furnished to the Company, or written representations that no reports were required, the Company believes that all Section 16 Reports that were required to be filed were filed on a timely basis.

TRANSACTIONS WITH RELATED PERSONS

Our Ethics and Integrity Policy instructs all of our employees, including the Named Executive Officers, to avoid conflicts between personal interests and the interests of Visteon, as well as any action that has the potential for adversely impacting the Company or interfering with the employee’s objectivity. The policy also requires any employee having a financial interest in, or a consulting, managerial or employment relationship with, a competitor, customer, supplier or other entity doing business with Visteon to disclose the situation to their manager or to the legal or human resources departments of the Company. The Company’s compliance group implements the Ethics and Integrity Policy and related policies and annually requires all management employees, including the Named

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Executive Officers, to complete a questionnaire disclosing potential conflicts of interest transactions. In addition, the Audit Committee is responsible for overseeing our ethics and compliance program, including compliance with the Ethics and Integrity Policy, and all members of the Board are responsible for complying with such policy. The Corporate Governance and Nominating Committee reviews the professional occupations and associations of board nominees, and annually reviews transactions between Visteon and other companies with which our Board members and executive officers are affiliated to the extent reported in response to our directors and officers questionnaire. The Ethics and Integrity Policy is in writing. See page 47 of this proxy statement under “Miscellaneous” for instructions on how to obtain a copy.

EXECUTIVE COMPENSATION

Compensation Disussion and Analysis

This Compensation Discussion and Analysis presents compensation information for the following current executive officers named in the Summary Compensation Table beginning on page 29 (the “Named Executive Officers” or “NEOs”), including:

Sachin S. Lawande, President and Chief Executive Officer (CEO);
Christian A. Garcia, Executive Vice President and Chief Financial Officer (CFO);
Sunil K. Bilolikar, Senior Vice President, Operations and Procurement;
Brett D. Pynnonen, Senior Vice President and General Counsel; and
Robert R. Vallance, Senior Vice President, Customer Business Groups.

Executive Summary

Visteon is a global technology company that designs, engineers and manufactures innovative cockpit electronics and connected car solutions for the world’s major vehicle manufacturers. Visteon is driving the smart, learning, digital cockpit of the future, to improve safety and the user experience. Visteon is a global leader in cockpit electronic products including digital instrument clusters, information displays, infotainment, head-up displays, telematics, SmartCoreTM cockpit domain controllers, and the DriveCoreTM autonomous driving platform. Visteon also delivers artificial intelligence-based technologies, connected car, cybersecurity, interior sensing, embedded multimedia and smartphone connectivity software solutions.

Despite a very challenging market environment in 2018, Visteon made significant progress in the transformation of the business. Visteon launched the industry’s first production cockpit domain controller with Daimler and secured significant new business wins in the fast-growing digital cluster and infotainment segments. In addition to winning approximately $7 billion in new business for the second consecutive year, Visteon added five new customers, which strengthens its position toward achieving long-term growth targets.

Visteon’s long-term goals are to achieve Sales of $4.4-$4.9 billion and expand margins by 2023. The automotive supplier business model of developing and supplying custom systems to automakers results in revenue generation that begins after an average of three years following booking the business. The delayed revenue model typically puts pressure on near-term margins, as the execution of new business requires investment in engineering and manufacturing capacity ahead of revenue generation. To support the Company’s long-term goals, the Company’s strategic initiatives included booking higher levels of new business as well as developing new technology offerings with the introduction of an Android-based infotainment system and a scalable autonomous driving controller designed for Level 2 and higher automated driving applications. Additionally, the executive team continues to focus on delivering continued cost efficiencies, improving free cash flow, optimizing the capital structure and driving savings benefits.

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Highlights of key actions and other 2018 financial and strategic achievements are summarized below.

2018 Sales of $2,984 million, Adjusted EBITDA(1) of $330 million, and Adjusted Free Cash Flow(2) of $107 million;
Winning $6.9 billion in new business in 2018, of which 73% was next-generation digital products – with five new customers added;
Significant capital returns to shareholders including $300 million in share repurchases in 2018, with authorization for an additional $400 million in repurchases remaining; more than $4 billion returned since 2012;
Balance sheet remains strong with Cash of $467 million, Debt of $405 million and 1.2x Debt/Adjusted EBITDA;
Outperformance in China includes $2.0 billion in new business wins, 34 product launches and Sales up 10 percentage points above market; and
Technology innovations including the DriveCoreTM ADAS platform and Android-based infotainment, as well as launching the industry’s first production domain controller — SmartCoreTM — with Daimler.

Pay for Performance Focus

The vast majority of the target compensation opportunity is performance-based with the amounts realized, if any, based on our financial results or stock price performance. In 2018, a significant majority (88% of the CEO’s target compensation and 69% of the average target compensation of our other NEOs) was provided through annual and long-term incentive award opportunities.


Our 2018 Performance Results Are Reflected in 2018 Total Direct Compensation

The 2018 compensation for our Named Executive Officers is commensurate with the Company’s 2018 performance and the goals of our executive compensation program. The mix of award types and incentive plan performance measures was selected to align with our business strategy, talent needs, and market practices. Actual pay to be realized by the executive officers was based primarily on the Company’s financial and stock price performance results. A majority of pay was based on at-risk elements given our focus on performance-based pay elements (annual and long-term incentives).

(1)Please see the reconciliation of Adjusted EBITDA to net income attributable to Visteon for the year ended December 31, 2018, in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “2018 10-K”).
(2)Please see the reconciliation of Adjusted Free Cash Flow to Cash provided from operating activities for the year ended December 31, 2018, in Item 9.01 “Financial Statements and Exhibits” of the Company’s Current Report on Form 8-K dated February 21, 2019.
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The chart below shows the cash vs equity components of target compensation for 2016-2018 which was awarded to our CEO as compared to compensation received or projected to be received as of December 31, 2018 using the Company’s stock price as of that date.


The relationship between target and realizable compensation is attributable to several factors:

Annual Incentive actual payouts relative to target levels
The difference between the grant-based value of Performance Stock Unit (“PSU”) awards and the relative performance as of December 31, 2018
The value of Restricted Stock Unit (“RSU”) awards at the grant date as compared to the value as of December 31, 2018
The value of options at the grant date as compared to value realized through and “in-the-money” value as of December 31, 2018

These factors, which resulted in realizable compensation for 2018 falling below target compensation, reinforce the performance orientation of our program and the alignment of interests between our executives and our shareholders.

Short-Term Incentive Compensation

Adjusted EBITDA is the primary metric for determining Annual Incentive (“AI”) awards with modifiers for new business wins, free cash flow and quality metrics. The AI program yields a threshold payment of 50% of target for threshold performance. Since that level of payout would have caused Adjusted EBITDA to fall below the performance threshold, the Organization and Compensation Committee of the Board of Directors (hereafter referred to as the “Committee”) exercised its discretion to reduce the payout amount, first by reducing the payout to a level of funding which resulted in Adjusted EBITDA of $330 million including the reduction for the Annual Incentive funding and second by not paying any amounts on the modifiers. This resulted in funding of awards at approximately 23% of target.

Long-Term Incentive Compensation Awards

All Named Executive Officers received annual Long-Term Incentive (“LTI”) awards in March 2018 which included stock options, restricted stock units and performance stock units. Mr. Pynnonen also received a special one-time restricted stock unit award during 2018 to recognize his efforts as the interim Chief Human Resources Officer.

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PSUs granted to NEOs are based on relative total shareholder return over a three year period. The table below shows the PSUs granted over the last three years and their actual or estimated performance through December 31, 2018. The PSUs granted in 2016 were paid out in the first quarter of 2019.

Year Granted
Applicable NEOs
Performance Period
Metric
Actual or Estimated
Payout Pct.
2018
All NEOs
Jan 2018-Dec 2020
Relative TSR
Estimated: 35%
2017
All NEOs
Jan 2017-Dec 2019
Relative TSR
Estimated: 81%
2016
All NEOs
Jan 2016-Dec 2018
Relative TSR
Actual: 113%

2018 Say-on-Pay Advisory Vote Outcome

In 2018, our executive compensation program received favorable support of approximately 94% of votes cast by our shareholders. Management and the Committee reviewed this result and believe it to be a strong indication of support for the Company’s executive compensation program and alignment of the program with shareholder interests. As detailed throughout this Compensation Discussion & Analysis, we believe the officer compensation program is strongly aligned with shareholder value creation, and reflects solid corporate governance practices.

Executive Compensation Program Design and Governance Practices

Our executive compensation program is designed to provide strong alignment between executive pay, shareholder interests, and Company performance, and incorporates best practices. Here are some of the compensation practices we follow and those we avoid.

What We Do
The Organization and Compensation Committee of the Board of Directors (hereafter referred to as the “Committee”) approves all aspects of officer pay
Target pay levels, on average, to be within a competitive range of the median of comparable companies, considering an individual’s responsibilities, business impact, performance and other factors
Provide the majority of pay through performance-based annual and long-term programs
Balance short- and long-term incentives using multiple performance metrics, covering individual, financial and total shareholder return (“TSR”) performance
Cap incentive awards that are based on performance goals
Have “double trigger” (qualified termination of employment following a change in control) equity acceleration for all of the NEOs’ outstanding awards
Have change in control agreements with a “double trigger” for cash severance payments to be made
Maintain guidelines for significant stock ownership by our NEOs to ensure ongoing and meaningful alignment with shareholders
Have a compensation recoupment (“clawback”) policy for executive officers in the event of a financial restatement
Prohibit hedging transactions, purchasing the Company’s common stock on margin or pledging such shares
Review key elements of the officer pay program annually, as conducted by the Committee, which also considers our business and talent needs, and market trends
Use an independent compensation consultant
 
What We Don’t Do
×
Do not provide excise tax gross-ups
×
Do not have compensation practices that encourage unnecessary and excessive risk taking
×
Do not grant stock options or stock appreciation rights with an exercise price less than the fair market value on the grant date
×
Do not provide dividends or dividend equivalents on unearned PSUs
×
Do not provide car allowances, club memberships or similar perquisites
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Executive Compensation Program Administration

The Committee is primarily responsible for administering the Company’s executive compensation program. The Committee reviews and approves all elements of the executive compensation program that cover the Named Executive Officers. In fulfilling its responsibilities, the Committee is assisted by its independent compensation consultant and takes into account recommendations from the CEO. The primary roles of each party are summarized below.

Party:
Primary Roles:
Organization and Compensation Committee (composed solely of independent directors)
Oversee all aspects of the executive compensation program
Approve officer compensation levels, incentive plan goals, and award payouts
Approve specific goals and objectives, as well as corresponding compensation, for the CEO
Ensure the executive compensation program best achieves the Company’s objectives, considering the business strategy, talent needs, and market trends
Senior Management
(CEO, CFO, CHRO, and General Counsel)
Make recommendations regarding the potential structure of the executive compensation program, including input on key business strategies and objectives
Make recommendations regarding the pay levels of the officer team (excluding the CEO)
Provide any other information requested by the Committee
Compensation Consultant
(FW Cook)
Advise the Committee on competitive market practices and trends
Provide proxy pay data for our compensation peer group
Present information and benchmarking regarding specific executive compensation matters, as requested by the Committee
Review management proposals and provide recommendations regarding CEO pay

Additional information about the role and processes of the Committee is presented above under “Corporate Governance — Organization & Compensation Committee.”

Executive Compensation Program Philosophy

The primary objectives of the Company’s executive compensation program are to recruit, motivate, and retain highly qualified executives who are key to our long-term success and will focus on maximizing shareholder value. As such, the Company’s executive compensation program is structured to accomplish the following:

Drive achievement of the Company’s strategic plans and objectives;
Create strong alignment of the interests of executives with the creation of shareholder value, particularly as measured by total shareholder return/stock price appreciation;
Provide a market competitive total compensation package customized to fit our business and talent needs; and
Be cost-effective and straightforward to understand and communicate.

For each element of compensation and in total, the Company generally targets annualized compensation to be within a competitive range of market median, while also considering an individual’s experience, performance, and business impact, as well as our organizational structure and cost implications. The target compensation mix is set based on position responsibilities, individual considerations, and market competitive practices. The proportion of variable, or “at risk,” compensation, provided through incentive programs, increases as an employee’s level of responsibility increases commensurate with the position’s impact on the business. The actual pay earned, if any, for annual and long-term incentives reflects Company and individual performance and will vary above or below the targeted level.

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Market Compensation Practices

As one of the inputs in determining executive compensation each year, the Company reviews general industry survey and proxy compensation data regarding market practices. When general industry compensation data are used, the Company is not aware of the specific participant companies in the analysis. In 2018, the Company reviewed NEO base salaries, target annual and long-term incentive award opportunities, as well as selected pay program design practices. In conducting this review, the Committee selected the 14 companies listed below whose aggregate profile was comparable to Visteon in terms of industry, size and other operations-related metrics as comparators for purposes of determining the range of market medians with respect to compensation elements (the “Compensation Peer Group”). When compared to the peer group utilized for 2017, the 2018 peer group removed Metaldyne Performance Group and Harman International Industries. We believe the Compensation Peer Group represents a reasonable comparator group of direct automotive supplier, technology peers and other related companies with which we compete for executive talent.

American Axle & Manufacturing
Garmin Ltd.
Rockwell Automation Inc.
Ametek Inc.
Gentex Corporation
Rockwell Collins Inc.
Cooper-Standard Holdings Inc.
Harris Corporation
Sensata Technologies Holding NV
Dana Holding Corporation
Motorola Solutions Inc.
Trimble Navigation Limited
FLIR Systems Inc.
Nuance Communications Inc.
 

For purposes of determining 2019 compensation, the Committee removed Rockwell Collins (due to an acquisition) and added Spirit AeroSystems.

Executive Compensation Program — Description of Primary Elements

An overview of the primary elements of the executive compensation program is presented below. Consistent with our emphasis on aligning pay and performance, the largest portion of the target compensation opportunity is provided through annual and long-term incentive programs.

Each primary element of the executive compensation program is described below.

Base Salary

Base salaries provide basic security for our employees at levels necessary to attract and retain a highly qualified and effective salaried workforce. Base salaries are determined taking into account market data as well as an individual’s position, responsibilities, experience, and value to the Company. During 2018 two NEOs received base salary increases. Messrs. Bilolikar and Vallance received 5% market- and merit-based increases to $405,020 and $404,884, respectively. The actual salaries paid to each Named Executive Officer for 2018 are presented in the “Summary Compensation Table.”

Annual Incentive Awards

The Company’s Annual Incentive program provides key salaried employees the opportunity to earn during their tenure an annual cash bonus based on specified individual, financial, operational and/or strategic goals. This program is designed to motivate executives to achieve key short-term financial and operational goals of the Company. The target incentive opportunities are expressed as a percentage of base salary, which are set by the Committee after considering the potential impact on the business of each role, the relationships among the roles and market competitive levels for the positions. The target annual incentive opportunities, as a percentage of base salary as of December 31, 2018 were: Mr. Lawande 125%, Mr. Garcia 80%, Messrs. Bilolikar, Pynnonen and Vallance 65% (up from 50% in 2017 for Mr. Pynnonen). Actual awards earned can range from 0% to 200% of target based on Company and individual performance.

On March 1, 2018, the Committee approved 2018 AI award opportunities for the Named Executive Officers as well as the AI program metrics. Under the 2018 AI program, Adjusted EBITDA is the primary metric to determine whether any amount will be paid to employees. The resulting Adjusted EBITDA award level is then modified based upon the Company’s performance against new business wins, adjusted free cash flow and quality metrics with the Committee retaining discretion to adjust the incentive pool outside of the specified measurements.

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Specific threshold, target, and maximum goals for the 2018 AI primary metric are set forth below, as well as the percentage of the target award earned and 2018 actual results, including the modifiers.

Primary Measure ($ in millions)
2018
Threshold
2018
Target
2018
Maximum
2018 Actual% of
Target Awarded
Adjusted EBITDA(1)
$
330
 
$
370-380
 
$
460
 
$
330
 
Payout as a % of Target
 
50
%
 
100
%
 
200
%
 
23.2
%
Modifiers ($ in millions)
Metric Range
Modifier
Range
Possible
Modifier
Achieved
Modifier
Applied
New Business Wins
Less than $5,400 to $7,200+
 
-/+ 10
%
+ 6%
0%
Adjusted Free Cash Flow
Less than $99 to $235+
 
-/+ 5
%
- 4%
0%
Written Quality Concerns
Greater than 551 to less than 410
 
-/+ 5
%
0%
0%
Total Annual Incentive Earned
 
 
 
 
 
23.2%
(1)Adjusted EBITDA was defined as net income attributable to the Company, adjusted to eliminate the impact of depreciation and amortization, restructuring expense, net interest expense, equity in net income of non-consolidated affiliates, loss on divestiture, provision for income taxes, discontinued operations, net income attributable to non-controlling interests, non-cash stock-based compensation expense, and other gains and losses not reflective of the Company’s ongoing operations.

The AI program yields a payment of 50% of target for threshold performance. Since that level of payout would have caused Adjusted EBITDA to fall below the performance threshold, the Committee exercised its discretion to reduce the payout amount, first by reducing the payout to a level of funding which resulted in Adjusted EBITDA of $330 million including the reduction for the Annual Incentive funding and second by not paying any amounts on the modifiers. This resulted in funding of awards at 23.2% of target. As a result of the foregoing, 2018 annual incentive awards were paid at 23.2% of target for all Named Executive Officers. The amounts paid to the NEOs are set forth in the “Summary Compensation Table” under the column “Non-Equity Incentive Plan Compensation.”

Long-Term Incentive Awards

The Company’s Long-Term Incentive program is designed to reward executives for the achievement of specified multi-year goals that are linked to the Company’s long-term financial performance, to align the delivery of incentive value with increases in the Company’s stock price and to retain key employees. Typically awards are granted each year with a vesting or performance period of three years; however, in some situations, such as the recruitment of new executives or to focus on objectives with a different duration, the Company may use a shorter or longer period. The annualized total targeted long-term incentive award opportunity is determined by considering market data, organization level and/or impact of the position on the Company’s performance.

2018 Long-Term Incentive Grants

On March 1, 2018, Mr. Lawande received regular long-term incentive grants with a targeted grant date value, in total, of $6 million, while Messrs. Garcia (275%), Bilolikar (90%), Pynnonen (90%) and Vallance (90%) received regular long-term incentive grants with targeted grant date values, in total, equal to a percentage of base salary. The LTI grant mix consisted of performance stock units, stock options and restricted stock units, as described below.

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Award Type and
Weighting
Primary Role
Design Features
Performance Stock Units
(50% of the total LTI value)
Reward the achievement of TSR results from 2018 through 2020 relative to returns of 16 similar companies
PSUs provide executives the opportunity to earn shares based on the Company’s three-year TSR relative to 16 automotive sector peer companies (listed below)
The awards are divided among three periods with all earned awards paid at the end of the three-year cycle (paid in early 2021)
2018 TSR performance (25% of award opportunity) which was earned at 35% based on the Company’s 25th percentile rank
2018 through 2019 TSR performance (25% of award opportunity)
2018 through 2020 TSR performance (50% of award opportunity)
The awards for the first and second performance periods will be increased to reflect the performance over the entire three-year cycle, if greater. If the Company’s actual TSR is negative during a performance period, the award earned for that period cannot exceed 100% of target (regardless of percentile rank within the peer group).
Awards can be earned up to 150% of the target award opportunity based on the Company’s TSR performance percentile ranking within the comparator group (Visteon plus the 16 TSR peer companies)
No award earned if Visteon’s performance is below the 25th percentile
At the 25th percentile, 35% of the target award is earned
At the 55th percentile, 100% of the target award is earned
At the 80th percentile, 150% of the target award is earned
Award payouts for performance between the percentiles specified above is determined based on interpolation
TSR is calculated using the 20-trading day average closing price at the start and end of the performance period, adjusted for dividends
Stock Options (25% of
the total LTI value)
Reward for appreciation in the Company’s stock price
Exercise price equal to the average of the high and low trading prices on the date of grant
Vest one-third per year beginning one year after the date of grant
Seven-year term, upon which any unexercised options would expire
Restricted Stock Units
(25% of the total LTI
value)
Facilitate retention and provide an ownership-like stake
Vest one-third per year beginning one year after the date of grant

Relative TSR Peer Group (16 companies)

The TSR Peer Group companies listed below differ from the Compensation Peer Group discussed previously as the companies with which we compete for talent are more technology-based, whereas the companies with which we compete for investor dollars are more automotive-based, lower-margin companies.

Adient, Inc.
Cooper Standard
Magna International, Inc.
Alpine Electronics
Dana Holding Corporation
Meritor Inc.
Aptiv PLC
Denso
Tenneco Inc.
Autoliv, Inc.
Faurecia
Valeo
BorgWarner Inc.
Hyundai Mobis
 
Continental
Lear Corporation
 
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Mr. Pynnonen’s 2018 Special Long-Term Incentive Compensation

In recognition of Mr. Pynnonen’s service as the interim Chief Human Resources Officer, on March 1, 2018, the Committee granted him four-year, cliff vesting restricted stock units with an approximate value of $200,000.

2019 Long-Term Incentive Program Changes

Changes to the 2019 long-term incentive program include updated target grant values for Mr. Garcia ($1,625,000), Mr. Bilolikar ($365,000), Mr. Pynnonen ($440,000) and Mr. Vallance ($460,000). In addition, the maximum which can be earned on PSU awards has been increased from 150% to 200% of target for 80th percentile TSR performance within the comparator group to align with market practices.

Other Compensation Elements

Stock Ownership Guidelines

The Company has adopted stock ownership goals for elected officers of the Company at or above Senior Vice President, which includes all NEOs. The goal for these officers is to own common stock worth a multiple of salary, ranging from three to six times. Effective January 1, 2018, the Committee implemented a retention requirement until the multiple of salary threshold is met. All executives subject to the stock ownership guidelines must retain 50% of net shares which vest from restricted and performance stock units and 50% of the shares remaining after the payment of option exercise prices and any taxes owed. Any pre-existing 10b5-1 trading plans were exempted from this new retention requirement by the Committee. Under the guidelines, only actual shares owned satisfy the guidelines. As of December 31, 2018 all officers continue to be subject to the retention requirement and all pre-existing 10b5-1 trading plans have expired. The stock ownership guidelines are as follows:

Chief Executive Officer — six times (6x) base salary; and
Executive and Senior Vice Presidents — three times (3x) base salary.

Executive Perquisites and International Service Employee Program

The Company had historically provided the Named Executive Officers with a flexible perquisite allowance program during their tenure to provide basic competitive benefits. The flexible perquisite allowance program was eliminated in 2016. The Company continues to maintain an Executive Security Program that permits the CEO to use commercially available private air transportation services for personal and business travel, and provides the benefit of various personal health and safety protections. The CEO does not receive a tax “gross-up” for personal use of such aircraft and all use requires advance approval by one of the following: Chairman of the Board or Chairman of the Compensation or Audit Committees of the Board. Additionally, the Company maintains an Executive Relocation Policy to assist executives with relocation expenses including home sales and searches, temporary living, moving and related expenses. There was no personal use of commercially available private air transportation services by or relocation benefits provided to NEOs during 2018.

As a global organization, senior executives of the Company are located in key business centers around the world. To facilitate the assignment of experienced employees to support the business, the Company has an International Long Term Assignment Policy to address incremental costs incurred by assignees as a result of their international assignments. The policy provides for the reimbursement of incremental housing, cost of living, education and other costs incurred in conjunction with international assignments as well as the tax costs associated with these payments. The Company provides tax equalization to employees on international assignment. The tax equalization policy is intended to ensure that the employee bears a tax burden that would be comparable to the home country tax burden on income that is not related to the international assignment. It is the objective of the Company’s International Long Term Assignment Policy that the employee not be financially disadvantaged as a result of the international assignment nor that the employee experience windfall gains. During 2018, Mr. Bilolikar was on an international assignment based in Kerpen, Germany, the cost of which is included in the “All Other Compensation” column of the “Summary Compensation Table.”

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Retirement Benefits Overview

The Named Executive Officers participate during their tenure in the Company’s qualified retirement and savings plans in their respective home countries on the same basis as other similarly situated employees. Over the last several years, the Company has made changes to the type of retirement plans and the level of benefits provided under such plans, based on an assessment of the Company’s business and talent needs, costs, market practices, and other factors. Effective December 31, 2011, the U.S. defined benefit pension plan was frozen for all participants. All of the NEOs participate in U.S.-based plans.

The Named Executive Officers, as well as most U.S. salaried employees, are entitled during their tenure to participate in the Visteon Investment Plan (Visteon’s 401(k) investment and savings plan). The Company’s match is 100% of the employee’s eligible contributions up to 6% of eligible pay (subject to IRS limits), which was designed to attract and retain employees in light of the Company’s freezing of other retirement benefit plans. Amounts deferred for each Named Executive Officer are reflected in the “Salary” column of the “Summary Compensation Table.” The Company also maintains a Savings Parity Plan, which provides eligible participants during their tenure with Company contributions of 6% of eligible pay that are restricted due to IRS limits under the broad-based, qualified 401(k) plan. The Company’s Supplemental Executive Retirement Plan (SERP) provides eligible participants during their tenure with annual Company contributions of 6% (Vice Presidents), 9% (Executive and Senior Vice Presidents), or 14.5% (CEO) of pay in place of the prior defined benefit formulas in the plan for service after January 1, 2012. The SERP is closed to new entrants other than for those employees at or above Senior Vice President or those employees who are specifically designated for participation by the Committee. Company contributions to these plans on behalf of the NEOs are included in the “All Other Compensation” column of the “Summary Compensation Table.”

Additional details about the Company’s prior and current retirement plans are presented in a later section, under “Retirement Benefits.”

Severance and Change in Control Benefits

The Company has entered into change in control agreements with all of its executive officers (except Mr. Lawande, whose change in control benefits are included in his employment agreement), including the Named Executive Officers. These agreements, which were last revised in October 2012, provide for certain benefits if a qualifying termination occurs following a change in control of the Company, as defined by the agreements. For the Named Executive Officers, and subject to the terms of the agreements, change in control cash severance benefits are provided during their tenure as a multiple of 1.5 (SVPs) or 2.0 (EVPs and Mr. Lawande) times the sum of the executive’s annual base salary and target annual incentive. In addition, the agreements provide for other severance benefits, such as the continuation of medical benefits and outplacement assistance, pursuant to their terms. The agreements have a “double trigger” provision, which would require that the executive’s employment terminate without cause or for good reason following a change in control, as defined in the agreements, in order to receive benefits under the agreements. No excise tax gross-up provisions are contained in the change in control severance arrangements.

Upon the involuntary termination of employment by the Company (other than for specified reasons, including disability, availability of other severance benefits, and inappropriate conduct), executive officers are entitled to severance benefits under the 2010 Visteon Executive Severance Plan, which was revised effective February 2017 (except Mr. Lawande whose severance benefits are included in his employment agreement). Subject to the terms of the Severance Plan, a specific and consistent level of severance benefits are provided with a cash severance payment of 1.5 (SVPs, EVPs and CEO) times the sum of an executive’s annual base salary and target annual incentive. Executives would also be entitled to, subject to the terms of the severance plan, the reimbursement of medical coverage premiums under COBRA for up to eighteen months following termination, the provision of outplacement services for up to twelve months, and the payment of a pro-rated portion of any outstanding annual incentive based on actual Company performance during the performance period.

The severance plan and change in control agreements provide that outstanding stock-based awards vest only in accordance with the applicable terms and conditions of such awards. For additional details about the change in control agreements, the severance plan, the terms and conditions of awards, and the estimated value of these potential payouts, see the section “Potential Payments Upon Termination.” The terms of Mr. Lawande’s compensation package, including potential severance and change in control benefits, are detailed in his employment agreements. See the section “Employment Agreement with Mr. Lawande” for additional details regarding such agreements.

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Executive Compensation Policies

Stock Awards Granting Policy. In 2018, the Company granted regular stock awards to its Named Executive Officers and other eligible key employees. Stock awards made to executives at the time they become employees or officers of the Company have a grant date on the later of the date employment commences or the date the Committee approves the awards. In all cases, the exercise price of stock options and stock appreciation rights is the average of the high and low trading price on the grant date. Stock price is not a factor in selecting the timing of equity-based awards.

Securities Trading and Anti-Hedging/Anti-Pledging Policy. The Company maintains a Policy Regarding Purchases and Sales of Company Stock that imposes specific standards on directors and officers of the Company. The policy is intended not only to forbid such persons from trading in Company stock on the basis of inside information, but to avoid even the appearance of improper conduct on the part of such persons. In addition to the specific restrictions set forth in the policy, the policy requires that all transactions in Company stock by such persons and by others in their households be pre-cleared by the General Counsel. The only exceptions to the pre-clearance requirement are10b5-1 trading plans and regular, ongoing acquisition of Company stock resulting from continued participation in employee benefit plans that the Company or its agents may administer. The policy also expressly prohibits directors and officers from engaging in hedging transactions involving the Company’s stock or pledging the Company’s stock.

Pay Clawbacks. In April 2013, the Company adopted a compensation recovery policy, which requires each executive officer of the Company to repay or forfeit a portion or all of any annual incentive, performance stock units or other performance-based compensation granted to him or her on or after September 29, 2012 if:

the payment, grant, or vesting of such compensation was based on the achievement of financial results that were subsequently the subject of a restatement of the Company’s financial statements filed with the Securities and Exchange Commission;
the amount of the compensation that would have been received by the executive officer, had the financial results been properly reported, would have been lower than the amount actually received; and
the Board determines in its sole discretion that it is in the best interests of the Company and its shareholders for the executive officer to repay or forfeit all or any portion of the compensation.

Tax Deductibility of Executive Compensation. Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), limits the Company’s federal income tax deduction to $1 million per year for compensation to its CEO and certain other highly compensated executive officers (and beginning for 2018, certain former executive officers). Historically, qualified performance-based compensation for the CEO and certain “covered officers” was not, however, subject to the deduction limit, provided certain requirements of Section 162(m) were satisfied. This exception has now been repealed, effective for taxable years beginning after December 31, 2017, unless certain transition relief for certain compensation arrangements in place as of November 2, 2017 is available. It has been our policy to consider the impact of this rule when developing and implementing our executive compensation program. Annual Incentive awards, performance-based stock units, and stock options (and stock appreciation rights) generally were designed to meet the deductibility requirements. We also believe that it is important to preserve flexibility in administering compensation programs in a manner designed to promote varying business and talent goals. Accordingly, we have not adopted a policy that all compensation must qualify as deductible under Section 162(m).

Statement Regarding Compensation Risk Assessment

The Company annually conducts a risk assessment and believes that its compensation programs, policies and practices do not create risks that are reasonably likely to have a material adverse effect on the Company. Specifically, as detailed previously, the Company maintains a market competitive, balanced executive compensation program with varying incentive award types, performance metrics, performance/vesting periods and includes governance features that mitigate potential risk (including Committee oversight, maximum potential payouts are set under incentive plans, stock ownership guidelines, and a pay clawback policy).

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COMPENSATION COMMITTEE REPORT

The Committee oversees the Company’s programs for compensating executive officers and other key management employees, including the administration of the Company’s equity-based compensation plans, and approves the salaries, bonuses and other awards to executive officers. The Committee has reviewed and discussed the Compensation Discussion and Analysis with management of the Company, and, based on such review and discussion, the Committee has recommended to the Board of Directors that the Compensation Discussion and Analysis so stated be included in this Proxy Statement.

Organization and Compensation Committee
David L. Treadwell (Chairman)
Jeffrey D. Jones
Harry J. Wilson

Summary Compensation Table

The following table summarizes the compensation that was earned by, or paid or awarded to, the Named Executive Officers. The “Named Executive Officers” are the Company’s Chief Executive Officer, the Company’s Chief Financial Officer, and the three other most highly compensated executive officers serving as such as of December 31, 2018, determined based on the individual’s total compensation for the year ended December 31, 2018, as reported in the table below, other than amounts reported as above-market earnings on deferred compensation and the actuarial increase in pension benefit accruals.

Name and Principal
Position
Year
Salary
($)
Bonus
($)(1)
Stock
Awards
($)(2)
Options
Awards
($)(3)
Non-Equity
Incentive Plan
Compensation
($)(4)
Change in
Pension Value
& Nonqualified
Deferred
Compensation
Earnings
($)(5)
All Other
Compensation
($)(6)
Total
($)
Sachin S. Lawande
 
2018
 
$
1,030,000
 
$
 
$
4,504,035
 
$
1,499,978
 
$
298,700
 
$
 
$
526,207
 
$
7,858,920
 
President and Chief
 
2017
 
$
1,030,000
 
$
 
$
3,785,854
 
$
1,249,984
 
$
1,416,250
 
$
 
$
562,355
 
$
8,044,443
 
Executive Officer(7)
 
2016
 
$
1,022,500
 
$
 
$
3,868,842
 
$
1,249,996
 
$
1,700,000
 
$
 
$
883,234
 
$
8,724,572
 
Christian A. Garcia
 
2018
 
$
590,000
 
$
 
$
1,217,955
 
$
405,609
 
$
109,504
 
$
 
$
182,913
 
$
2,505,981
 
Executive Vice President
 
2017
 
$
590,000
 
$
 
$
1,135,657
 
$
374,992
 
$
590,000
 
$
 
$
113,368
 
$
2,804,017
 
and Chief Financial Officer(8)
 
2016
 
$
147,500
 
$
500,000
 
$
979,296
 
$
94,255
 
$
155,851
 
$
 
$
28,018
 
$
1,904,920
 
Sunil K. Bilolikar
 
2018
 
$
400,198
 
$
 
$
273,523
 
$
91,110
 
$
61,077
 
$
 
$
1,268,886
 
$
2,094,794
 
Senior Vice President,
 
2017
 
$
385,733
 
$
 
$
767,233
 
$
86,781
 
$
313,408
 
$
126,720
 
$
977,387
 
$
2,657,262
 
Operations and Procurement(9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brett D. Pynnonen
 
2018
 
$
440,000
 
$
 
$
497,774
 
$
98,987
 
$
66,352
 
$
 
$
108,578
 
$
1,211,691
 
Senior Vice President
 
2017
 
$
440,000
 
$
100,000
 
$
299,754
 
$
98,993
 
$
275,000
 
$
 
$
111,087
 
$
1,324,834
 
and General Counsel(10)
 
2016
 
$
352,319
 
$
100,000
 
$
231,175
 
$
74,129
 
$
288,200
 
$
 
$
42,863
 
$
1,088,686
 
Robert R. Vallance
 
2018
 
$
400,064
 
$
 
$
273,392
 
$
91,078
 
$
61,057
 
$
 
$
109,581
 
$
935,172
 
Senior Vice President,
 
2017
 
$
385,604
 
$
 
$
1,180,590
 
$
86,755
 
$
313,304
 
$
 
$
99,040
 
$
2,065,293
 
Customer Business Groups(11)
 
2016
 
$
381,825
 
$
 
$
257,937
 
$
83,348
 
$
261,410
 
$
 
$
56,822
 
$
1,041,342
 
(1)This column is composed of sign-on bonus payments to Messrs. Garcia and Pynnonen.
(2)The amounts shown in this column represent the grant date fair values for PSU and RSU awards in 2018, 2017 and 2016. Messrs. Bilolikar and Vallance received special retention RSU grants in 2017 valued at approximately $500,000 and $900,000, respectively, which cliff vest four years from the grant date.The grant date fair values have been determined based on the assumptions and methodologies set forth in Note 15 “Stock-Based Compensation” to the consolidated financial statements included in Item 8 “Financial Statements and Supplementary Data” of the Company’s 2018 10-K. Assuming the maximum performance levels are achieved for the NEOs’ PSUs granted in 2018 and based on the grant date share price, the values in the “Stock Awards” column would be $5,741,103 for Mr. Lawande; $1,552,487 for Mr. Garcia; $348,680 for Mr. Bilolikar; $581,414 for Mr. Pynnonen; and $348,494 for Mr. Vallance. These amounts may not reflect the actual value realized upon vesting or settlement, if any.
(3)The amounts shown in this column represent the grant date fair values for stock options granted in 2018, 2017 and 2016. The grant date fair values have been determined based on the assumptions and methodologies set forth in Note 15 “Stock-Based Compensation” to the consolidated financial statements included in Item 8 “Financial Statements and Supplementary Data” of the Company’s 2018 10-K.
(4)For 2018, this column is composed of the amounts payable to each of the Named Executive Officers under the 2018 annual incentive performance program, as further described in the “Compensation Discussion and Analysis,” above. There were no earnings on non-equity incentive plan compensation earned or paid to the Named Executive Officers in or for 2018.
2019 Proxy Statement     29

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(5)This column reflects an estimate of the aggregate change in actuarial present value of each Named Executive Officers’ accumulated benefit under all defined benefit pension plans from the measurement dates for such plans used for financial statement purposes. See “Retirement Benefits — Defined Benefit Plans,” below. None of the Named Executive Officers received or earned any above-market or preferential earnings on deferred compensation.
(6)For 2018, this column includes the following benefits paid to, or on behalf of, the Named Executive Officers:
Life insurance premiums paid by the Company on behalf of all of the Named Executive Officers;
Company-contributions to the Company’s 401(k) defined contribution plan, DC SERP and Savings Parity Plan on behalf of Mr. Lawande ($501,481), Mr. Garcia ($177,000), Mr. Bilolikar ($107,040), Mr. Pynnonen ($107,250) and Mr. Vallance ($107,005);
Disability insurance premiums paid by the Company on behalf of Mr. Lawande ($12,021) and Mr. Garcia ($3,126);
Reimbursement of legal expenses incurred by Mr. Lawande in connection with his employment contract ($10,000);
Tax payments and reimbursements on behalf of Mr. Bilolikar ($102,214) in connection with his international service assignment; and
The payment of expenses to or on behalf of Mr. Bilolikar ($1,056,116) under the Company’s international service employee program, which provides allowances and payments to address the incremental costs of housing, education, cost of living, taxes and other costs associated with international assignments.
(7)Mr. Lawande joined Visteon as Chief Executive Officer and President effective June 29, 2015.
(8)Mr. Garcia joined Visteon as Executive Vice President and Chief Financial Officer effective October 1, 2016.
(9)Mr. Bilolikar was appointed Senior Vice President, Operations and Procurement in December 2016. Prior to that, he was Group Vice President, Operations and Procurement, since July 2014. During his career with Visteon and Ford Motor Company he has held several engineering and operations leadership positions.
(10)