Aaron Ledet
LyondellBasell IndustriesAbout Aaron Ledet
Executive Vice President, Intermediates & Derivatives (I&D) and Supply Chain at LyondellBasell (LYB). Promoted to EVP effective March 1, 2024 and joined the executive committee; prior roles include SVP, Olefins & Polyolefins (O&P) Americas and VP, Olefins & Feedstocks . Education: B.S. Industrial Distribution (Texas A&M), MBA (Rice University) . Age ~50 per Morningstar executive page; tenure as EVP since March 2024 . 2025 operating performance under his segment: I&D EBITDA was $211M in Q1 2025 and $290M in Q2 2025; he led actions including permanent closure of Dutch PO JV and efficiency-focused turnarounds (La Porte) and cash improvements via precious metal sales .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| LyondellBasell | EVP, Intermediates & Derivatives and Supply Chain | 2024–present | Leads global I&D manufacturing and commercial operations; joined executive committee |
| LyondellBasell | SVP, Olefins & Polyolefins (Americas) | 2022–2024 | Ran O&P Americas and developed options for Houston refinery transition |
| LyondellBasell | VP, Olefins & Feedstocks | Prior to 2022 | Commercial/manufacturing leadership across feedstocks |
| LyondellBasell | Director & Chief of Staff, I&D | 2015–2017 | Segment operations support and strategy execution |
| LyondellBasell | Assoc. Director, EU Supply Chain | 2013–2015 | European logistics and supply chain optimization |
| LyondellBasell | Assoc. Director, Catalloy & PB-1 | 2011–2013 | Specialty polymer product management |
| LyondellBasell | VP, Chemical Sales | 2017–2018 | Commercial leadership in chemicals |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Americas Styrenics (AmSty) | Product Director | 2008–2011 | Product portfolio and market development in styrenics |
Fixed Compensation
Not individually disclosed for Mr. Ledet in LYB’s 2025 DEF 14A (NEOs listed are CEO, CFO, EVP APS, EVP O&P, and General Counsel) . LYB’s executive framework emphasizes pay-for-performance with cash salary and annual STI; long-term incentives granted as 60% PSUs and 40% RSUs, with RSUs granted from 2024 onward vesting ratably over three years (prior grants cliff vested after three years) .
| Component | Structure | Metrics/Notes |
|---|---|---|
| Base Salary | Cash; reviewed annually by C&TD Committee | Market benchmarking vs peer median; no automatic increases |
| Short-Term Incentive (STI) | Annual cash; 0–200% payout | Company metrics: Business Results (60%), Safety (20%), Sustainability (10%), Value Creation (10%). CEO has no individual component; other execs include individual performance weighting |
| Long-Term Incentive (LTI) | 60% PSUs, 40% RSUs | PSUs: 3-year performance on relative TSR and FCF/share; TSR capped at 100% if negative. RSUs: time-based, ratable vesting over 3 years (from 2024) |
Performance Compensation
Company-level 2024 STI metric outcomes (reference for executives subject to the program). Individual payout for Ledet is not disclosed.
| Metric | Weighting | Target Definition | Actual 2024 Outcome | Payout vs Target | Vesting/Settlement |
|---|---|---|---|---|---|
| Business Results (EBITDA ex. items vs adjusted budget) | 60% | Budget adjusted for market spreads, FX/mark-to-market, LIFO, extraordinary events | EBITDA ex. items below adjusted budget by 5.7% | 62% of target | Annual cash |
| Value Creation (Recurring annual EBITDA, VEP) | 10% | Incremental recurring annual EBITDA toward $1B by end-2025 | Exit run-rate >$800M vs $600M target | 200% of target | Annual cash |
| Safety (TRIR, PSIR) | 20% | TRIR and PSIR, with committee discretion | TRIR 0.127; PSIR 0.021 | 153% of target | Annual cash |
| Sustainability (PPAs, energy efficiency, recycled/renewable volumes) | 10% | 700 GW PPAs; 1% efficiency gain; 180kt recycled/renewable polymers | 2,042 GW PPAs; 1.5% efficiency; 203kt volume | 163% of target | Annual cash |
| Overall Company STI payout (reference) | — | Weighted aggregate | — | 104% of target | Annual cash |
PSU performance for the 2022–2024 cycle paid 79% of target (negative TSR but above peer median; FCF/share below target due to market headwinds) .
Equity Ownership & Alignment
- Ownership guidelines: Executives must reach share ownership valued at a multiple of base salary within 5 years; only beneficially owned shares and RSUs count; PSUs/options do not. Hedging and pledging are prohibited .
- Beneficial holdings and recent equity awards for Ledet (per Forms 3 and 4):
| As-of Date | Security Type | Quantity | Notes |
|---|---|---|---|
| Mar 8, 2024 | RSUs | 6,223 | Breakdown includes prior grants vesting per LTIP |
| Apr 1, 2024 | RSUs | 5,923 | Composition lists tranches from 2022–2024 grants |
| Feb 27, 2025 | RSUs (award filing) | 11,610 | RSUs disclosed in Form 4 summary; part of annual LTI cycle |
- Insider trading policy prohibits hedging, short sales, pledging, or margin accounts for executives .
Employment Terms
- Role start: Promoted to EVP I&D effective March 1, 2024 and joined executive committee .
- Change-in-control treatment: LYB maintains double-trigger vesting and severance; PSUs pro-rated at target upon qualifying termination post-CIC; no excise tax gross-ups; clawback policy covers incentive compensation after restatements or misconduct. Specific cash severance multiples for Ledet are not disclosed (proxy tables illustrate NEOs only) .
Performance & Track Record
| Period | Segment/Topic | Quantitative/Qualitative Highlights |
|---|---|---|
| Q1 2025 | I&D segment | EBITDA $211M; margin compression in acetyls and oxyfuels; permanent closure of Dutch PO JV with Covestro; IND assets targeted ~85% operating rates in Q2 |
| Q2 2025 | I&D segment | EBITDA $290M (+$79M QoQ) on improved styrene and PO margins; planned La Porte acetyls turnaround; precious metals sales contributing ≥$50M to cash plan in 2025 (with $35M in Q2) |
| Q3 2025 outlook | Multi-segment context | Company guided to I&D ~75% operating rates; industry downtime influenced oxyfuels margins; asset idling for maintenance (Wesseling cracker; Channelview PO/SM) |
Compensation Peer Group and Governance Context
- Compensation peer group (18 companies) used for benchmarking TTDC and program design (e.g., Dow, DuPont, Linde, PPG, Valero, etc.) .
- Say-on-pay support: 98% approval in 2024, reflecting shareholder alignment with pay-for-performance .
- Program governance: independent C&TD Committee; no option repricing; clawbacks; prohibition on hedging/pledging; director and executive stock ownership guidelines .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited for executives (alignment positive) .
- Option practices: No options granted in 2024; if granted in future, policy prohibits timing grants around MNPI .
- Clawbacks: Robust policy adopted per SEC/NYSE rules (mitigates misconduct risk) .
- Related-party transactions: Subject to Audit Committee approval; none disclosed involving Ledet .
Investment Implications
- Alignment: Ledet’s compensation is tied to EBITDA, safety, sustainability, and value creation metrics; PSUs linked to relative TSR and FCF/share, which supports shareholder-aligned incentives through cycles .
- Vesting/Selling pressure: RSUs vest ratably over 3 years beginning with 2024 grants; expect periodic vesting-related transactions (incl. tax withholding) rather than large discretionary sales; hedging/pledging bans reduce misalignment risk .
- Execution risk: I&D margins are cyclic and sensitive to feedstock dynamics; Ledet’s commentary highlights planned turnarounds, asset closures, and cash optimization (precious metals), suggesting focus on controllables; sustained margin recovery would support STI/LTI outcomes .
- Retention: Participation in executive committee, broad segment leadership, and programmatic equity grants enhance retention; double-trigger CIC protection without tax gross-ups is market-standard and shareholder-friendly .