Incentivization plan is not e(greg)ious

Research evidence excerpt

Incentivization plan is not e(greg)ious

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Akzo Nobel

Reiterate Rating: BUY | PO: 75.00 EUR | Price: 56.28 EUR

Millions more reasons to believe in deal synergies 24 July 2026

Ahead of the upcoming Aug 5th EGM shareholder vote on the Axalta merger, the Equity

company has published proposed compensation for senior management. The nominated

CEO, Greg Poux-Guillaume would receive a base salary of EUR1.3mn, in line with the

Key Changesaverage of EU Chemical CEOs (see overleaf). More noticeable is the potential multiplier

on variable compensation. We calculate total pay could reach EUR19mn if targets were (EUR) Previous Current

fully achieved. We don’t know the exact performance hurdles but would intuitively 2026E EPS 3.75 3.80

assume it is linked to delivering the $600mn merger synergies. If so, management 2027E EPS 4.25 4.35

compensation should be contextualised against the capitalised value (c.$4-5bn) created 2028E EPS 4.55 4.75

for shareholders from improving margins post merger. Reiterate Buy, PO EUR75.

Matthew Yates >>

US listing changes performance culture and accountability ResearchMLI (UK) Analyst

We strongly believe investors are under-estimating the impact on group governance and +44 20 7996 4537 matthew.yates@bofa.com

culture stemming from the Axalta merger and the associated transfer of sole listing to

Matthew DeYoe, CFA

the US, as discussed in Curate’s (Gr)egg, 6 Jan and No (G)regrets about following merger Research Analyst

path, 22 June. The new disclosure on management incentivisation reinforces this BofAS +1 646 855 5746

opinion. We think the attractiveness of Akzo assets, and the historic under-management, matthew.deyoe@bofa.com

is highlighted in recent peer approaches. We anticipate Axalta will have disproportionate