Alicia J. Davis
LEARAbout Alicia J. Davis
Alicia J. Davis is Senior Vice President and Chief Strategy Officer at Lear Corporation, and a 2024 Named Executive Officer (NEO) focused on strategy execution across Seating and E‑Systems . Company performance during her 2024 NEO period: revenue $23.3B, adjusted EPS increased for the fourth consecutive year, E‑Systems margins improved 50 bps, and free cash flow was $561.4M . 2024 AIP paid at 89% of target (80% from financials plus +9% strategic scorecard), while 2022–2024 performance shares paid at 112% (Relative TSR at 26.7th percentile; cumulative adjusted pretax income above target) .
Past Roles
Not disclosed in the 2025 DEF 14A; Alicia is listed as Senior Vice President and Chief Strategy Officer among Lear’s NEOs .
External Roles
Not disclosed in the 2025 DEF 14A .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary Rate ($) | $550,000 | $580,000 (effective 9/1/2024) |
| 2024 Annual Incentive Plan (AIP) | Value |
|---|---|
| Target Bonus % of Base | 80% (unchanged from 2023) |
| Target Bonus ($) | $464,000 |
| Final Payout % | 89% |
| Actual Bonus Paid ($) | $412,960 |
| 2024 Other Compensation | Value |
|---|---|
| All Other Compensation ($) | $192,704 (company retirement contributions, life insurance, executive physical, security services) |
| 2024 Total Compensation Mix | Value |
|---|---|
| Salary ($) | $560,000 |
| Stock Awards ($) | $1,652,598 (Career Shares, RSUs, Performance Shares) |
| Non-Equity Incentive ($) | $412,960 |
| Total ($) | $2,818,262 |
Performance Compensation
| AIP Metric | Weight | Target | Actual | Payout Basis |
|---|---|---|---|---|
| Adjusted Operating Income ($) | 50% | $1,215M | $1,101M (adjusted) | 82% of target |
| Free Cash Flow ($) | 50% | $630M | $561M | 78% of target |
| Strategic Scorecard | Modifier | — | — | +9% applied to AIP result |
| Final AIP Outcome | — | — | — | 89% of target payout |
| LTI Metric (2024–2026) | Weight | Goal Structure | Notes |
|---|---|---|---|
| Adjusted Pretax Income | 50% | Three annual goals set Nov 2023; target ~31.8% above 2023–2025; payout averages annual results | Targets set pre-period; measured annually |
| Adjusted ROIC Improvement | 25% | Baseline 2023 ROIC = 10.28%; Threshold +60 bps, Target +160 bps, Max +260 bps; average of annual results | Emphasizes capital efficiency |
| Relative TSR | 25% | Relative to peer group; capped at 100% if absolute TSR negative | Median (P50) at target; peer set listed |
| 2022–2024 Performance Shares (paid Feb 13, 2025) | Target Shares | Payout | Shares Earned |
|---|---|---|---|
| Alicia J. Davis | 3,630 | 112% | 4,063 |
| 2024 Grants (Award Mix & Values) | Career Shares ($) | RSUs ($) | Performance Shares ($) | Total ($) | Perf Shares Max ($) |
|---|---|---|---|---|---|
| Alicia J. Davis | $199,938 | $412,467 | $1,040,193 | $1,652,598 | $1,924,941 |
| 2024 Share Counts Granted | Threshold (#) | Target (#) | Maximum (#) |
|---|---|---|---|
| Performance Shares | 3,394 | 6,788 | 13,576 |
| Time-based RSUs | — | 2,909 | — |
| Career Shares (RSUs) | — | 2,137 | — |
Equity Ownership & Alignment
| Ownership Detail (as of 3/18/2025) | Value |
|---|---|
| Common Shares Beneficially Owned (#) | 10,261 |
| RSUs Held (#) | 18,656 |
| Options (Exercisable) (#) | 0 (none disclosed for Alicia) |
| Performance Shares – Unearned (#) | 22,080 (target/mix across open cycles) |
| Ownership % of Shares Outstanding | Less than 1% (Company-calculated) |
| Stock Ownership Guidelines | Executives have guidelines; must hold 50% of net shares until compliant |
| Compliance Status (12/31/2024) | Not yet met; retains ≥50% of net vested shares until target achieved |
| Hedging/Pledging | Prohibited for officers (no pledging allowed) |
| Clawbacks | Restatement clawback and Improper Conduct policy (3-year lookback) |
Vesting Schedules and Near-Term Supply
| Award Type | Vesting Date | Shares |
|---|---|---|
| 2022 RSUs (Alicia) | Jan 4, 2025 | 518 |
| 2023 RSUs (Alicia) | Jan 4, 2026 | 2,184 |
| 2024 RSUs (Alicia) | Jan 4, 2027 | 2,909 |
| 2022 Career Shares | Nov 14, 2025 | 1,364 |
| 2023 Career Shares | Nov 13, 2026 | 1,562 |
| 2024 Career Shares | Nov 20, 2027 | 2,137 |
Notes:
- Alicia is not retirement-eligible; her retirement eligibility date is April 26, 2027 (affects Career Share distribution and accelerated vesting conditions) .
- 2024 stock vested for Alicia totaled 7,462 shares (RSUs, Career Shares, and Performance Shares) with $871,314 value realized including dividend equivalents .
Employment Terms
| Scenario (as of 12/31/2024) | Cash Severance ($) | Benefits PV ($) | Accelerated Equity ($) | Total ($) |
|---|---|---|---|---|
| Involuntary w/ Change-in-Control | $2,088,000 | $35,225 | $2,497,439 | $4,620,664 |
| Involuntary (no CIC) | $2,088,000 | $35,225 | $1,592,189 | $3,715,414 |
| Disability or Death | — | — | $1,796,209 | $1,796,209 |
Key provisions:
- Severance equals two times base salary plus target annual bonus (paid lump sum) .
- Double-trigger equity vesting under CIC (awards vest only if not assumed or if termination within 24 months post-CIC); unvested PSUs vest at target; pro rata rules apply to recently granted RSUs/options .
- No excise tax gross-ups; benefits are cut to avoid 4999 excise tax if it increases after-tax proceeds .
- Non-compete and non-solicit covenants during employment and for one year; extended to two years for certain terminations (disability, without cause, or good reason) .
- Robust clawbacks: mandatory restatement recovery and Improper Conduct policy covering cash, equity, severance with 3-year lookback .
Investment Implications
- Pay for performance alignment: AIP metrics (Adjusted Operating Income, Free Cash Flow) missed stretch targets but the strategic scorecard delivered a +9% uplift, resulting in an 89% payout; this indicates disciplined financial targets with innovation-linked modifiers that can boost cash bonuses modestly .
- Long-term equity is highly performance-weighted: 70% of non-CEO NEO LTI is in Performance Shares with multi-factor goals (Adjusted Pretax Income, ROIC improvement, Relative TSR) and TSR caps when absolute TSR is negative—supportive of shareholder alignment and discouraging windfalls in down markets .
- Insider supply near-term is manageable: Alicia has scheduled RSU/Career Share vestings in 2025–2027 and is required to hold at least 50% of net shares until she meets ownership guidelines, which reduces near-term selling pressure; pledging/hedging are prohibited, further limiting adverse alignment risks .
- Retention risk appears contained: Double-trigger CIC vesting, two-times cash severance, and deferred Career Shares (distribution generally at age 62 or three years post-termination after qualifying retirement) create strong retention hooks through 2027 as she approaches retirement eligibility .
- Performance track record: 2022–2024 PSUs paid 112% driven by above-target adjusted pretax income despite below-median Relative TSR (26.7th percentile); 2024 company performance showed $23.3B revenue, adjusted EPS growth, and $561.4M free cash flow, supporting the view that operational execution is translating into incentive outcomes even with mixed TSR .