Colin Naughton
AUTOLIVAbout Colin Naughton
Colin Naughton, age 57, is President, Autoliv Asia, a division, since November 2020; he first joined Autoliv in 1995 and holds a Bachelor of Technology from the National University of Ireland, Galway . Company-level performance over his tenure shows improving fundamentals: Autoliv’s Net Income rose from $188M (2020) to $648M (2024) and Adjusted Operating Income rose from $482M (2020) to $1,007M (2024), while cumulative TSR (value of $100) moved from $110 (2020) to $125 (2024) . In 2025, management noted progress in China with improving growth versus LVP driven by launches with Chinese OEMs, relevant to the Asia portfolio .
Company Performance Snapshot During Tenure
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Autoliv TSR (value of $100) | $110 | $126 | $96 | $143 | $125 |
| Peer Group TSR (value of $100) | $116 | $139 | $101 | $100 | $76 |
| Net Income ($USD Millions) | $188 | $437 | $425 | $489 | $648 |
| Adjusted Operating Income ($USD Millions) | $482 | $683 | $598 | $920 | $1,007 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Autoliv | President, Autoliv Asia | Nov 2020–Present | Leads Asia division operations and growth; previously led Japan/ASEAN . |
| Autoliv | President, Japan/ASEAN | Apr 2020–Nov 2020 | Regional leadership ahead of Asia presidency . |
| Autoliv | VP, Seatbelt Operations, Division Asia | May 2018–Apr 2020 | Drove seatbelt operations across Asia . |
| Autoliv | VP, Seatbelt Operations, Japan/ASEAN | Jan 2015–May 2018 | Operational leadership for seatbelt manufacturing in Japan/ASEAN . |
| Autoliv | President, Thailand (prior period) | n/a | Prior in-country leadership within Asia division . |
| Autoliv | Various Sales/Engineering/Operations roles | Since 1995 | Progressive responsibilities across Asia . |
External Roles
- Not disclosed in company filings; no external directorships or committee roles for Naughton are listed in the latest proxy .
Fixed Compensation
| Component | Detail |
|---|---|
| Base Salary | €444,190 gross annual wages under Secondment Agreement (effective June 1, 2025) . |
| Pay Frequency | Paid monthly on the 27th; tax and statutory withholdings apply . |
| Secondment Term | Seconded to Autoliv Asia ROH Co., Ltd. (Thailand) from June 1, 2025 through December 31, 2026 (unless earlier terminated/extended) . |
| Position (Secondment) | President, Autoliv Asia ROH Co., Ltd. (Bangkok) . |
| Housing Reimbursement | Up to THB 115,000 per month (incl. utilities) through August 2025 to support transition . |
| Relocation | Reimbursement of approved relocation expenses; international medical insurance provided during secondment . |
| Governing Law | Secondment governed by laws of the Kingdom of Thailand; Thai courts jurisdiction . |
Performance Compensation
Annual Non-Equity Incentive (Program Mechanics and 2024 Outcomes)
| Metric | Weighting | Target/Payout Structure | 2024 Actual | Payout Outcome (2024) |
|---|---|---|---|---|
| Adjusted Operating Income | 50% | 0% payout at ≤70% of 2023 AOI; 200% at ≥130%; linear in-between . | $1,007M AOI (109% of 2023 AOI) | For NEOs outside Europe: 152% of target . |
| Adjusted Cash Conversion | 50% | 0% payout at ≤50%; 200% at ≥90%; linear in-between . | 85% | For NEOs outside Europe: 152% of target . |
- Program design emphasizes a limited set of established metrics to drive transparency and alignment; Europe division had a tailored component for its president in 2024, while other executives used the corporate metrics above .
Long-Term Incentive (PSU/RSU Design)
| Component | Design Detail |
|---|---|
| LTI Mix (Executives other than CEO) | 75% PSUs / 25% RSUs of grant value . |
| 2024 PSU Metrics | EPS (60%), Relative Organic Sales Growth (25%), GHG Emissions reduction (15%); structured as one-year performance periods for 2024–2026; earned 2024 tranche cliff vests in Q1 2027 . |
| RSU Vesting | Regular RSUs require minimum three-year vesting (cliff vesting for 2024 grants) . |
| Options | No stock options outstanding; none granted since 2015 . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Stock Ownership Guidelines | CEO: 2x base salary; other executive officers: 1x base salary. Must retain 75% of net shares from RSU settlements until compliant . |
| Hedging/Pledging | Policy prohibits hedging, short-selling, and pledging of Autoliv securities by executives and directors . |
| Clawback/Recoupment | Board required to recoup incentive comp from current/former Section 16 officers upon financial restatement; broader clawback authorized for harmful conduct . |
| Group Ownership | Directors, NEOs, and executive officers as a group (24 individuals) held 231,485 shares as of record dates in the proxy . |
Recent Insider Transactions (Form 4)
| Date (Trade) | Filing Date | Transaction | Shares/Price | Notes/Source |
|---|---|---|---|---|
| 2024-02-21 | 2024-02-22 | Sale | 949 shares at $110.11; direct holdings 6,868 after | OpenInsider transaction detail . |
| 2023-02-08 | 2024-01-24 (Amendment) | Sale | 486 shares at $90.87; direct holdings 4,743 after | Form 4/A notes additional 66 shares; OpenInsider summary . |
| 2025-03-26 | 2025-03-26 | Form 4 filed | — | SEC index entry (Naughton Form 4 03/26/2025); SEC filing index . |
| 2025-06-12 | 2025-06-12 | Form 4 filed | — | SEC filing index . |
| 2025-09-23 | 2025-09-24 | RSU-related entry (Form 4) | — | StreetInsider shows RSUs represent contingent right to one share ; WhaleWisdom index . |
Note: Proxy footnotes indicate RSUs/PSUs vested on Feb 21, 2025 for award tranches; historical NEO vest dates around February align with observed late-February trading activity patterns for executives generally .
Employment Terms
- Secondment: Effective June 1, 2025 through December 31, 2026 to Autoliv Asia ROH Co., Ltd. (Bangkok); remains an employee of Autoliv Inc. under underlying agreement dated October 1, 2020; continuity of service preserved; return to suitable position at original employer upon expiry .
- Duties/Restrictions: Assigned as President; required to focus full-time on Host Company duties; may not engage in conflicting businesses; must resign from certain executive/board roles at Autoliv Japan, Autoliv Vietnam, and Autoliv Cebu during secondment .
- Compensation/Benefits: Base salary €444,190; paid monthly; housing reimbursement up to THB 115,000/month through Aug 2025; relocation reimbursement; international medical insurance .
- IP/Confidentiality: Broad confidentiality obligations; assignment of intellectual property to Host Company; irrevocable license where assignment not transferable .
- Termination & Law: Termination by mutual agreement or applicable rights under Thai law/underlying agreement; governed by Thai law with Thai court jurisdiction .
- Equity Plan Protections (company-wide): Since 2019, equity grants include double‑trigger acceleration upon qualifying termination following a change in control when awards are assumed by a public successor; no §280G excise tax gross-ups; no option repricing without shareholder approval .
Investment Implications
- Pay-for-performance alignment: Executive LTI emphasizes PSUs (75% of executive grant value) tied largely to EPS and growth, with a sustainability metric (GHG) and three-year cliff vesting, promoting long-term value creation and retention . 2024 annual incentive outcomes (152% of target for NEOs outside Europe) reflect strong AOI and cash conversion performance (AOI $1,007M; Cash Conversion 85%) .
- Selling pressure/vesting cadence: RSUs cliff-vest over three years; proxy footnotes show February vesting dates, and Naughton’s Form 4 sales cluster around late February in prior years, indicative of post-vest liquidity or tax events—potential for predictable, periodic selling pressure near vest dates .
- Alignment and risk controls: Mandatory ownership guidelines (1x salary for executives), 75% net-share retention until compliant, and prohibition on hedging/pledging reduce misalignment and financial risk-taking; robust clawback policy adds downside discipline .
- Regional execution: Management commentary highlights improving China momentum in mid-2025 driven by local OEM wins and launches—an area under Naughton’s regional remit—supporting division growth but subject to macro/tariff dynamics .