Tim Bowes
Axalta Coating SystemsAbout Tim Bowes
Tim Bowes was appointed President, Global Industrial Coatings at Axalta effective January 27, 2025, after serving as Senior Vice President and Chief Transformation Officer; he previously held senior P&L and operations roles at Meritor (Electrification/Industrial/Aftermarket/Purchasing & Supply Chain), American Axle (Casting BU President), Transtar Industries (CEO/President), and leadership roles at ITT Automotive and Intermet; he holds an MBA from Wayne State University and a bachelor’s degree from Lawrence Technological University . His appointment followed Axalta’s record 2024 performance (net sales $5.3B, Adjusted EBITDA $1.116B) and the 2024 Transformation Initiative (approx. $20M savings), with management executing the 2026 A Plan; 2026 targets include 15% ROIC and >60% Adjusted Diluted EPS growth vs 2023 ($2.69 implied) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Axalta | SVP & Chief Transformation Officer | — | Played “an important role” in Axalta’s transformation over the past two years, driving strategy and operational excellence . |
| Meritor | SVP & President, Electrification, Industrial, Aftermarket, Purchasing & Supply Chain | — | Led multiple global business lines and supply chain, relevant to scaling industrial platforms . |
| American Axle & Manufacturing | SVP & President, Casting Business Unit | — | P&L leadership in manufacturing-intensive business unit . |
| Transtar Industries | CEO & President | — | Led an industrial/automotive aftermarket company . |
| ITT Automotive; Intermet | Executive leadership roles | — | Operations and leadership roles; lived/worked in Asia and Europe, bringing global execution experience . |
Fixed Compensation
- Individual 2024/2025 base salary and target bonus details for Tim Bowes were not disclosed; he was appointed January 27, 2025 and is not included in the 2024 NEO compensation tables .
Performance Compensation
Company program levers that will govern Bowes’ incentives (applies to executive officers including Presidents):
- 2025 ABP changes: Metrics are Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow; a company-wide plan with individual performance serving as a modifier (0–200%) .
- Long-term PSUs: 2025 PSUs split 50% Relative TSR (vs. S&P 400 MidCap) and 50% 3-year cumulative Adjusted EPS; payout 0–200% of target .
Company ABP metrics and 2024 outcomes (executives’ bonuses are funded by these results):
| Metric | Threshold (50% payout) | Target (100%) | Maximum (200%) | Actual | Payout as % of weighting | Notes |
|---|---|---|---|---|---|---|
| Adjusted EBIT ($mm) | $643 | $772 | $884 | $835 | 151.3% | Company-wide plan in 2024 |
| Adjusted EBIT Margin | 13.9% | 14.9% | 16.6% | 15.9% | 160.9% | |
| Free Cash Flow ($mm) | $383 | $435 | $544 | $451 | 113.2% | |
| Weighted ABP payout (before individual modifier) | 144.2% | ABP used a single company financial score with individual modifier in 2024 |
PSU design and vesting schedules:
| PSU Metric (Grant Year) | Threshold | Target | Maximum | Payout mechanics |
|---|---|---|---|---|
| Relative TSR (2024/2025 PSUs) | 25th percentile: 50% | 50th percentile: 100% | 75th percentile: 200% | Capped at 100% if absolute TSR is negative |
| Financial metric (2024 PSUs: Adjusted EBITDA) | 50% of target | 100% | 200% | 3-year performance (2024–2026) |
| Financial metric (2025 PSUs: Adjusted EPS) | 50% of target | 100% | 200% | 3-year cumulative Adj. EPS (2025–2027), balancing EPS with TSR |
Context on realized PSU outcomes (pre-appointment reference):
- The 2022–2024 PSU cycle (for 2022 grants) paid at approximately 26% of target based on Adjusted EPS and ROIC (with Relative TSR at the 50th percentile modifier) .
Equity Ownership & Alignment
| Policy/Practice | Details |
|---|---|
| Stock ownership guidelines | CEO 5x salary; Presidents/SVPs 2x salary; within five years of role or becoming subject to guidelines . |
| Retention until compliance | If below requirement, must retain 50% of shares from option exercise and 75% of shares from RSU/PSU vesting (net of taxes) until compliant . |
| Hedging/pledging | Prohibited from hedging, short sales, pledging or margin accounts; 10b5-1 plans require pre-approval; quarterly blackout periods apply; trades require pre-clearance . |
| Compliance status | As of the 2025 Proxy, each current director and executive officer satisfies the guidelines or is within the grace period (covers current executives like Bowes) . |
| Options usage | Company “does not currently grant” options or option-like instruments . |
| Beneficial ownership reference | “All executive officers and directors as a group” included Timothy Bowes as President, Global Industrial Coatings in 2025 ownership grouping; individual line-item holdings for Bowes were not separately disclosed . |
Employment Terms
| Term | Company practice (applies to executive officers) |
|---|---|
| Employment agreements | “No NEO employment agreements” (Axalta uses programmatic policies and offers) . |
| Severance/Change in control | Equity plan provides double-trigger vesting upon Change-in-Control; no single-trigger vesting . |
| Clawback | SEC/NYSE-compliant clawback policy for executives (restatement-trigger); broader policy covers violations of Company policies (e.g., Code of Conduct) . |
| Tax gross-ups | No tax gross-ups . |
| Equity plan protections | Minimum 12-month vesting; no liberal share recycling; no option repricing; dividends only paid if awards vest . |
| Trading controls | Pre-clearance required; blackout windows each quarter; 10b5-1 plans subject to approval . |
Compensation Committee, Peer Group, Say-on-Pay
- Peer group used for benchmarking includes chemicals/industrial firms (e.g., Albemarle, Eastman, PPG, Sherwin-Williams, Celanese, Huntsman, IFF, RPM, etc.) .
- “Pay for performance” philosophy with high at-risk mix; 2024 NEO say-on-pay support was 98.65% .
- 2024–2025 investor engagement covered ~55% of shareholder base and ~60% of actively managed funds; no material governance/compensation issues were raised .
Investment Implications
- Incentive alignment: Bowes’ bonus and equity are tied to multi-year value drivers—Adjusted EBITDA/EBITDA margin, Free Cash Flow, Relative TSR, and cumulative Adjusted EPS—aligned with the 2026 A Plan targets (~15% ROIC; >60% Adjusted EPS growth vs 2023), reinforcing growth, margin, cash discipline, and shareholder returns .
- Risk controls: Double-trigger equity vesting, robust clawbacks, no tax gross-ups, and prohibitions on hedging/pledging reduce misalignment and windfall risk; blackout and preclearance rules temper opportunistic sales and mitigate selling pressure optics .
- Execution lens: His transformation background and global industrial operating experience (Meritor/AAM/Transtar) support delivery against ABP/PSU metrics that emphasize operating leverage and cash flow; Axalta’s 2024 records and transformation savings provide a favorable baseline, but forward payouts will depend on sustaining EBITDA margin/FCF and meeting EPS/TSR hurdles through 2026 .